Pundits and political scientists are always searching for that simple theory that’ll explain just what makes our politics tick. Where should they be looking? How about in the eyes of a billionaire at tax time?
If you give a dollar to a middle class family, that family will spend that dollar in the local economy and spur growth.
The California Constitution says the water belongs to the people. Yet the state gives water almost free to agriculture–resulting in enormous waste and dire “shortages” during droughts. If the state were to charge for water, that would end the water crisis–and solve California’s fiscal crisis too.
Back when I studied economics, we “proved” in class that a minimum wage causes unemployment. But that proof depends on assuming a perfectly competitive market. Big low-wage employers like Wal-Mart have substantial market power; they can deliberately under-staff operations to force down wages. In that case, a minimum wage increase can actually create jobs–if it can be enforced.
The new Congressional Budget Office report projects that the Affordable Care Act will lead to a decline in full-time equivalent workers of 2.5 million. This is people voluntarily deciding to work less–like mothers with small children, or workers in poor health or close to retirement. That should mean higher wages for the remaining workers.
We already have the technology necessary to attain a decent, sustainable lifestyle — technology that can create more and better jobs.
Why the 2014 State of the Union action agenda won’t take us nearly as far as we need to go.
QE is supposed to stimulate the economy by encouraging investment with low interest money. That hasn’t happened, but why? Does no one want to borrow, or do banks not want to lend?
Present-day inequality reflects the poisonous result of eroding net worth among African-American and Latino households and an exploding concentration of wealth in the top 1 percent, and within that, among our richest 400 billionaires.
Making the market “decisive” means that the Chinese government has decided to place profits before people — and even before that previously invincible talisman, economic growth.