On July 6, 2012, Economist and New York Times Columnist Paul Krugman discusses public sector employment and the economy on The Rachel Maddow Show on MSNBC.
The problem is that to pay for this expanding taxpayer expenditure requires either income redistribution through taxation and/or debt borrowing, which increases the deficit to the point of never-ending without creating “real” economic growth.
The reason for the recommended job creation policies is to put people to work and provide them with income so that they can buy the products and services produced by the economy, and avoid a recession or depression.
This results in an endless cycle of deficit financing and income redistribution. Instead, the focus should be on financing future REAL income-producing productive capital growth so that simultaneously its ownership is broadly owned by the citizenry, from the poorest to the richest. This will result in the creation of real wealth and increase personal incomes to create demand for products and services and support real economic growth, which will then support needed and necessary public services.
But the focus continues to be on “make-work” job creation rather than putting the priority on ownership creation, which will result in “real” job creation. This is not to say that we should slash taxes and services to the bone, but to begin to concentrate on creating real wealth and economic growth to raise the taxable base and put ALL Americans on a path to prosperity, opportunity, and economic justice.
What we need is to affirm as a nation that when taxpayer monies are involved, stipulations must ensure that broader ownership opportunities in the private sector are pursued so that over time the citizenry will be less dependent on government support. This means, as well, ownership-building accounts for individuals who do not work for profit-making enterprises, such as school teachers, civil servants, military personnel, police, and health workers, and for individuals who have no remunerative employment, such as the disabled, the unemployed homemakers and children.
See the proposed Capital Homestead Act at http://www.cesj.org/homestead/index.htm and “Democratic Capitalism And Binary Economics: Solutions For A Troubled Nation and Economy” at http://foreconomicjustice.com/11/economic-justice/
