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Tuesday, October 25, 2016

Our Challenge For 2012: Get Americans Working

2011 will be remembered as the year Americans woke up to the harm that growing disparities in wealth and income have done to our society and our economy.

For decades, the rich have claimed a far larger share of the nation’s bounty than the rest of us, and now we see the consequences. Americans have funded their consumption — not just of widescreen TVs and vacations but also of homes, educations and health care — by taking on more and more debt. In 2008, the bottom fell out for a lot of households, and things haven’t improved much since.

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Copyright 2012 The National Memo
  • kurt.lorentzen

    Once again, here’s an article that looks only at the social ramifications of not spending money and completely ignores the long-term effects of debt. Here is some math: if you took ALL of the profits of the fortune 500 and ALL of the income of top 1% (Not tax it – confiscate it ALL!), you still couldn’t finance the expenditures of the US government for even 1 year! Where I agree that the rich and corporations should have to pay taxes on all of their income/profits regardless of the source, those taxes won’t begin to pay for what we intend to spend. Pseudo-socialist economies are failing across Europe with the US blindly pursuing the same course as all of the indicators point to the same fate. Is this realistic?
    I agree that we need to prepare our workforce. The idea that the private sector is shrinking because of “Tea Party resistance” to government spending is just not founded in reality. Here’s a news bulletin: Government spending is not private sector job creation! The US private sector is shrinking because it has been displaced by foreign markets that simply out-compete us, and US compaines are rushing to those markets in order to remain remotely competitive. We need legislation that includes import tarriffs that make the US a favorable place to manufacture and service – those are the real private sector jobs! We need a balanced budget that includes debt repayment to avoid the fate of the EU. Clamoring about inequality is fine, but doesn’t solve anything. Until the US goes back into the business of being in business nothing will change.

  • CRES105

    I have a different view of the two arguments that job creation will fix the U.S. economy. There is a good point made that “we” (the 99 percent)(not the 1%) create jobs by demanding goods and services.
    So the correct answer to fixing the economy is to raise the personal exemption on earned income to say $100,000 per year per person. This should give every “working” American an instant boost in spendable income. This will not affect Un-earned income which is where most of the 1% derive theirs. It also doesn’t affect social security or workers compensation deductions. OK, so.
    After that, the Feds enact a National Consumption Tax (NCT) that everyone in the U.S. pays when they purchase something. We can simply begin with 1 penny on a dollar. This 1 penney, paid by everyone when they purchase something can be called “a penney for the debt”. After 1 year of this, the Feds will know how much money is being spent from the amount of NCT collected which is also an indicator of GDP. This will be an indicator of how the economy is doing, because “it’s people spending money that grows the economy and creates more jobs”, right?. Giving banks and automakers and corporate brokerage houses our tax dollars didn’t do it, so try giving it to the tax payers this time and see what happens.