EVERYTHING YOU NEED TO KNOW ABOUT CAPITALISM, JOB CREATION AND HOW OUR ECONOMY REALLY WORKS
Saw an exchange on Politico the other day between Mikey and Merriweather Brown (screen names) about the state of the economy and conservative economic policy. Mikey was basically pushing the Unfettered Free Market Capitalist theory (the one we’ve been subjected too for almost 40 years now) you know, “Government isn’t the solution; Government is the problem;” “The Private Sector Can Do It Better;” “Cutting Taxes Creates Jobs” “Government Regulation Destroys Jobs” etc. etc.
I thought Merriweather’s reply below pretty succinctly destroyed Mikey’s and the conservative’s economic policies both Democrats and Republicans have been touting as the path to American Nirvana since 1980.
This tactic is beyond stupid. NO business will invest, let alone hire, to produce widgets no one will buy. Business DOES NOT CREATE JOBS, consumers do that.
Once you understand the basic concept of consumption driven economy, you then, understand that consumer wealth is the primary driver of expansion, or even health in an economy.
Once you understand that basic concept, you understand that govt is the most likely candidate for increasing wealth in consumer hands, or reducing it.
Your Free market" BS, has spent 40 years, redistributing wealth from consumers to "business/producers", and been very successful; due to GOP governing agendas (less regulating, lower taxes, assisted labor cost reductions). During that time, consumer wealth has lost massive ground, and; surprise surprise, growth, and even health in our economy is stagnant and dwindling consumer wealth even more.
Govt doesn't create jobs, may be a grand talking point, but it is utterly untrue, and can be proven in many ways. Military is a job. Building for military is a job. Putting money in the hands of the poor creates jobs (to supply the goods they purchase). Teachers/police/firefighters all buy thing -create jobs.
Business creates jobs, is another lie, and can be easily dis-proven. In spite of massive buildup of both profit levels, as well as capital (available for investment), jobs are fewer and pay less. Business creates jobs ONLY when demand attracts it to do so.
Now you will say regulations and or taxes are govt's primary effect on "climate", right? Well, if these things are so bad (govt is creating a poorer climate), then why are profits, along with consolidated wealth so massively increased and increasing still?
Actually, Wilson's ideas, and these of the GOP are all failed agendas, as far as economic solutions. They have Caused lower wages, higher market disparity, and greater consolidation, but, simultaneously massive poverty (even worker poverty), and less revenue.
A "viable corporation" or business is not defined as one that can remain solvent due to massive profits (caused by poor payment of labor and/or massive avoidance of tax burden) but one that actually benefits the people in the community where they are formed.
Your argument is self defeating. Fact: we have massive increase in wealth consolidation (capital) Fact: we have massive disparity of market reward, favoring wealth consolidating. Fact, we have had this, increasing, since Reagan (roughly 40 years) on a steady incline. Fact, during that same time, we have had increasing poverty, stagnant or loss to wage growth, and growing debts.
You got what you wanted, and it failed to do what you said it would do, so why do you keep claiming it will? More advantages to "business/capital consolidating" will not increase wages, decrease poverty, or decrease debt, because it has done the opposite for over 40 years, so stop making absurd statements, as though they are facts.
Fact" Reagan's "successful economic agenda" created a tripling of national debt. That IS the very model of massive govt spending to improve economic growth, just poor govt spending (the "return" never occurred, and we still have the debt caused). Reagan's spending was all on the very policies and agendas that you still claim will work (less regulating, lower taxes, assisted wage undermining). They did the exact opposite of what "you" say they will do then, and have done so, since enacted and to the degree adhered to.
Pandering to "business interests" did not and will never cause growth in employment, nor wage increases; instead it causes the opposite, plus massive debt growth. Investment in "business advantaging" leads to more wealth for them to use to gain, even more advantages; as any moron would realize they would do before they ever advocated such a moronic plan. So stop stating it, as though it is fact.
Govt role is regulating this advantage seeking by wealth mongers, not enabling and/or encouraging/assisting it. Because, assisting wealth advantaging pillages consumer wealth, and THAT is the true source of economic success.
Supply side economic model WAS, "voodoo economics"; but now, it is just plain stupidity. You are the one that is mentally challenged.
Frankly I can’t fault a single one of Merriweather’s points. As I said, pretty much all you need to know about how our economy really works.