On January 26, 2013, economist Paul Krugman writes in The New York Times:
So what we have is a situation in which American families have more stuff, but they have managed to afford that stuff only by being two-income families, with ever less family time — unlike their European counterparts, who have gained in shorter hours and vacations what they lost in stay-at-home wives.
It’s not hard to think of reasons for this divergence; many of them come down to sharply rising inequality and the rat race this inequality creates.
Income inequality is exponentially crippling the United States as labor loses income due to slave labor economic globalization (free trade) and tectonic shifts in the technologies of production whereby labor is replaced or devalued by the non-human means of production in the form of human-intelligent machines, super-automation, robotics, biorobitc, digital computerized operations, etc.
Paul Kurgman has historically focused his advocacy on JOB CREATION, but job creation is not the sensible course to pursue. Instead our focus should be on OWNERSHIP CREATION with EVERY American increasingly over time earning income from profit dividends fully paid out of the earnings of capital investments in the FUTURE economy.
This can be accomplished by appling the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself.
We need to to make every citizen an owner so that they can earn dividend income without making the systemic mistake of limiting financing to past savings and/or requiring workers to reduce their consumption incomes to become owners. This is the challenge of a movement that needs the support and voice of influential economists such as Krugman, academia and political leaders.
The solution is not a focus on JOB CREATION but a focus on OWNERSHIP CREATION. There is a solution. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.
The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.
Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm
http://krugman.blogs.nytimes.com/2013/01/26/what-we-have-less-of/
