Saturday, December 29, 2012

Demand side economics

I have marveled over the conservative position that putting money into the hands of the upper class will create more jobs because they are the job creators. The notion, as those of us who've watched this debate for any time know, is that the money will trickle down. Unfortunately this has been the manner in which the U.S. Government has conducted it's business since the Ronald Reagan administration. And we have been on a downhill slide ever since.

Middle class wages have languished, the rich have taken an ever increasing slice of America's wealth and plowed it into speculative investments instead of into jobs and businesses because demand for goods and services is dwindling. The very notion that businesses will create jobs just to create jobs is foolish - if there are no customers, why would they hire more people?

The U.S. is in dire need of improving its infrastructure - improved roads, high speed rail, upgraded energy delivery systems, etc. Obama knows this, but can't get legislation through Congress that would invest money in construction and in the middle class. THIS would create middle class wealth - THIS would create jobs - THIS would create more demand and lead to growing businesses.

But too many morons are in too many positions of power and so our great nation languishes. Will this lead to the end of the great American story? Or will there be a resurgence of intellectualism that will lead to more enlightened leadership in the next few years? We are probably on the cusp.

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