Jan 06 2009
Three Million Jobs Program Must Stimulate DEMAND
Merely creating three million jobs over the next two years will not provide “stimulus” to the nation’s economy if it fails to stimulate DEMAND.
DEMAND is what drives the capitalist economy: Demand and Supply, in that order. Demand is what must come first, not Supply.
So any economic stimulus plan must ensure that the small “production” businesses in the country, whether a “curb and sidewalk” concrete contractor or roofer, or a painter, or a “tape and texture” guy, have WORK to do. Now, I’m not talking about retail business here, nor real estate agents, insurance agents or stock brokers.
Small “production” businesses can quickly gear up and accept new owork, hire new employees, even using “temp” agencies, and generate PAYROLLS. A Payroll is what generates demand for goods, which in term will stimulate the large manufacturing corporations to produce the commercial products that consumers with paychecks will Demand.
Overall, our economy has many thousands of people employed in the “non-producing” jobs that don’t CREATE anything and are themselves dependent upon Demand before they can receive a paycheck. Besides retail, real estate agents, insurance agents, and stock brokers that I mentioned above, I also included in these “non-producing” jobs social workers, school teachers, and other governmental positions that depend upon tax revenues to pay them.
Now, I see a proposal being floated in Congress to provide a tax rebate this year, 2009, in the amount of $500 for a single taxpayer and $1000 for a couple. As welcome as this would be for individual checking accounts, it will NOT stimulate the economy. I, for one, would rather see that money put toward getting people to WORK.
