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View Diary: The U.S. has learned nothing from Europe's deadly obsession with austerity (105 comments)

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  •  "Government investment" can mean (4+ / 0-)
    Recommended by:
    Gooserock, MeToo, dadoodaman, Zaq

    different things.  In MittWorld, it means channeling money from government into the hands of rich people -- the investor class -- so that they can invest.  In Japan it meant using public funds for construction projects geared toward a politically overrepresented rural sector: not very helpful to the young and marginally employed.

    U.S. investment in basic services is necessary; investment in new technology is also important; but I think government should go beyond that.   As I look at the stores of a nearby mall, I immediately see too much supply and too little demand, because the cash just isn't out there.  We need an injection of cash back into the economy, starting at the low end.  Find the people at the bottom and give them money.  Not hit-or-miss droplets of charity, but a broad and substantive infusion of capital.  

    With some real generosity, the economy could get moving again, and the billionaires would once again be rolling in it. The difference is that they would live in a country that is significantly richer.  Some will worry that wages might go up, but that does not seem to be a bad thing.  

    •  minimum wage increase and tax increase on the rich (2+ / 0-)
      Recommended by:
      RenMin, Eikyu Saha

      It is no coincidence that the minimum wage has been stuck for the past 22 years.  The wealth from productivity increases and tax cuts has funneled upwards, but the economy can only be sucked dry for so long.  The economy has flattened out because there's not enough money flowing.  That has to come back to the lower and middle classes, who really drive the economy.

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