It's Demand Stupid
With all this RepubliCant double speak about 'Job Creaters' instead of plain out calling them the rich and wealthy and how they are the segment that will create jobs, that just isn't true. That isn't how they operate or perceive themselves. They don't exist to create jobs. They exist to create profit. Jobs to them equals wages. Wages is just one of many inputs that create a product they can sell to make PROFIT.
What we need is DEMAND. Demand will create a need for workers who will earn wages that will increase the need for products that will produce PROFIT. So how does demand increase and get us the outcome we desire. One way is to give money to those who will spend it all on goods that will create the most wages and jobs the fastest. That way the velocity of that spent money will move through the economy and create a multiplier effect and the money supply will increase and the ability to lend money will increase (because banks get to leverage their money) and the need for that money will increase for wages and inputs to produce goods and make profit.
Who spends most of their money as soon as they have any? Workers and the poor spend the greatest proportion of their income, NOT the so called job creators. They save a portion of their income because they don't use it all to fulfil their needs. How can the people that need and will use money which will create demand get it? Unemployment benefits is one way. Direct payments is another. Incentives is one. Hiring workers to work on government projects is another. Basic research at universities and private concerns, that could be a way.
So there are many ways do what needs to be done, done.
What we need is DEMAND. Demand will create a need for workers who will earn wages that will increase the need for products that will produce PROFIT. So how does demand increase and get us the outcome we desire. One way is to give money to those who will spend it all on goods that will create the most wages and jobs the fastest. That way the velocity of that spent money will move through the economy and create a multiplier effect and the money supply will increase and the ability to lend money will increase (because banks get to leverage their money) and the need for that money will increase for wages and inputs to produce goods and make profit.
Who spends most of their money as soon as they have any? Workers and the poor spend the greatest proportion of their income, NOT the so called job creators. They save a portion of their income because they don't use it all to fulfil their needs. How can the people that need and will use money which will create demand get it? Unemployment benefits is one way. Direct payments is another. Incentives is one. Hiring workers to work on government projects is another. Basic research at universities and private concerns, that could be a way.
So there are many ways do what needs to be done, done.
Labels: I can't recall, It's Demand Stupid

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