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View Diary: The myth of the job creator (114 comments)

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  •  Nonsense... (1+ / 0-)
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    ipsos

    ...this is the old "government spending crowds out private investment" argument that the Republicans constantly make.

    And in an economy operating at full capacity, it would actually have some merit -- but that's not true in an economy with as much slack as we currently have.

    With many millions of people unemployed and desperately needing work, and with corporations sitting on large sums of money, our current choice isn't between government and private investment.  Instead, our current choice is between government investment and...nothing.

    Looking at it as coldly as possible, let's imagine that the government raises an extra $100 billion/year in taxes on the wealthy.  Since the wealthy weren't investing in productive capacity in this economy (why invest when you don't have enough customers to support your current capacity), that $100 billion will actually generate more activity in the government's hands than it would in the hands of those millionaires.  (And, yes, I know that the government will waste some of that money on useless pork projects...just as the wealthy will waste some of that money on $10,000 handbags and other useless items.  In both cases, some jobs are still created, although less than if the money went to something more valuable.)

    You may want to question those Republican talking points instead of just repeating them.

    Political Compass: -6.75, -3.08

    by TexasTom on Sun Aug 07, 2011 at 04:59:04 PM PDT

    [ Parent ]

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