Fooled by Freedom, God and the Constitution
To the editor:
Is being cynical reasonable or is trusting politicians to have as their primary objective the interests of the masses a palm smack to the forehead?
Growing the economy is the most effective way to solve budget deficits and it is universally accepted by economists. Study after study by economists like Marc Zandi of Moody’s find money infused in unemployment benefits grows the economy $1.64 per dollar spent. On food stamps it is $1.73 growth per dollar spent. Where am I going with this?
The American economy is out of balance. The dollars are being legislated through tax- and-spending policy to flow into the black hole of the wealthy corporations and individuals. These dollars are virtually taken out of circulation. No corporation or wealthy person hires or spends more than market demand dictates.
That’s how they got wealthy.
Business doesn’t work in reverse – you don’t hire and produce more than the market demands because you had a good year. If there is demand they have access through borrowing to fund more production. The result is a growing economy, not one behaving like the inch worm economy today, where the wealthy corporations and individuals are sucking the sweat equity out of the working poor and barely retired. Equity is shrinking for the masses.
I’m saying we need an infusion at the bottom (a raise) of the economy that will have a multiplier effect (the opposite of the 1/10 of 1 percent black hole). A guaranteed boost in spending in our economy would come from a raise Social Security benefits for those with income below of $70,000 per couple and raising the minimum wage to $15/hour. Pay for it with a surtax on the $2 trillion sitting offshore waiting on another tax holiday (after already avoiding fair taxation).
The above would have a dramatic effect on the economic standing of welfare recipients (90 percent) who are elderly, seriously disabled, or members of working households – not to able-bodied, working-age Americans who choose not to work. It would immediately end America’s budget deficit.
Finally, “States that boosted their minimum wages at the beginning of the year the number of jobs grew an average of 0.85 percent from January through June. The average of states that didn’t was 0.61 percent.” (Fox news) no massive layoffs!
Google it – job-growth-picks-up-in-states-that-raised-minimum-wage.
Michael D Bartley
Forth Myers Beach