tag:blogger.com,1999:blog-6047544383372645090.post8583812744445998393..comments2024-01-30T22:59:53.319-08:00Comments on Economics Without Greed : Ben Leethttp://www.blogger.com/profile/14058357566482675649noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6047544383372645090.post-29404344826152046252012-02-28T14:09:47.505-08:002012-02-28T14:09:47.505-08:00There is a lot here.
I don't think that anybo...There is a lot here.<br /><br />I don't think that anybody denies that income disparities have increased substantially. This has translated into asset disparities, as you note elsewhere.<br /><br />I believe that this is the single fundamental reason why things have gotten harder for many Americans (and Greeks, and Spaniards, etc.).<br /><br />You suggest some ways to to deal with the situation (EITC reform, government spending to increase demand, setting of interest rates, etc.) You also suggest that government hiring would be helpful.<br /><br />I think that you grasp the most of the problems, but I'll add some thoughts for you to consider.<br /><br />First EITC is hated by many for one reason - it's a selective handout to people that the rich don't like - the poor. This is a problem politically - not economically. A simple solution is to make the handout non-selective - give it to everyone on a monthly basis. Who doesn't want money? Some will scream "inflation," but, of course, those in debt could use a little inflation, and it would put small monthly amounts into people's hands to be spent on goods that could be produced easily - it would pump demand. Until everyone is employed and the economy is humming, the likelihood of real inflation is small anyway (barring a real energy shortage). The amount could be adjusted as necessary as the economy rises and falls.<br /><br />I have no problem with a government jobs program AS LONG AS THERE IS IMPORTANT WORK TO BE DONE WITH A PUBLIC PURPOSE. We do have roads to fix and social services have shrunk for those that need. I don't know if everyone who wants a job can be employed in this way and for how long. The great arrival of leisure promised by automation and productivity gains somehow never showed. What to do?<br /><br />Have the government hire for those jobs that need doing. If people are still unemployed, mandate vacation for all - maybe 5 weeks to start. This will spread the available work around to more people and provide leisure time for all. Employers will balk, but it would apply to all, so there would be no competitive disadvantage for employers hiring workers in this country. People concerned about further offshoreing could perhaps be appeased by that terrible tax known as an import duty.<br /><br />Taxation is a troublesome issue politically, so why tackle it? What matters, always, is RELATIVE wealth. It makes no difference if you decrease the wealth of the rich or increase that of the poor - the result is the same. You are aware, I think, that the government doesn't need money in order to spend, so it doesn't NEED to tax. Still, some sort of a VAT which might exclude things that cost less than $100 doesn't seem too unreasonable.<br /><br />We should work for two reasons: to produce things that we need or want AND to stimulate our minds and satisfy our passion to create and learn. People in the US, however, think that we need to work to consume. This is silly.<br /><br />Best,Andrewhttps://www.blogger.com/profile/16117038742077458192noreply@blogger.com