Friday, July 27, 2012
Robert Pollin: "Full Employment Is Possible": How to Increase Economic and Job Growth
I actually like the idea that Progressive Economist Robert Pollin, who I probably agree with more often then I do agree with Progressive Economist Robert Reich. Which isn't saying much but Bob Pollin has a good idea here, one of the reasons why our Small Business's are struggling right now. And are not expanding, is because they can't get loans, because the banks aren't lending, they aren't lending money right now, they are sitting on over a trillion dollars in assets. Money that the economy could definitely use right now, that the Federal Government wouldn't have to borrow or cut back. Or raise taxes on anyone in this bad economy, because the money is already there, the Federal Reserve could take that money, put in the economy and lend it out to legitimate business interests that can't afford to either startup or expand. Hiring thousands of workers, people who are unemployed, that obviously don't have much money to spend right now, new workers leads to new customers. New customers leads to Consumer Spending, Consumer Spending leads to Economic Growth, Economic Growth leads to Job Growth, Economic and Job Growth leads to falling debt and deficit. If Congress plays it right and doesn't go on a spending binge with the new, they act like sober sailors instead of drunken sailors. All part of the Economic Spin Cycle.
So tapping into some of these new resources while still leaving plenty of money, so banks have insurance if they get into trouble. Would be a great first step, the next step would be like a Marshal Plan but for the United Sates, lets give our Construction and Manufacturing Industries a huge boost. And start rebuilding this huge beautiful country and target those 12M Unemployed Workers, a lot of them in the Construction Industry and put these people pack to work, with a five year. 1T$ Infrastructure Investment bill, 200B$ a year for those of you that are slow at math and lets pay for this by taxing pollution or some other part of the economy we can do without. Gas and oil, we obviously need gas and oil but while those prices are low, as well as an idea that former US Senator Bill Bradley suggested in his latest book, for every workers that employers hire. Allow them to deduct the Payroll Taxes that they pay for those workers for up to a year, as long as they don't fire anyone else.
For anyone else that employers are considering laying off because they are losing revenue. Allow them to deduct the costs of keeping those workers on their payroll, as long as they don't lay them off or fire them. So we aren't losing any more jobs as we are struggling to create any and as we start hiring again, we aren't losing any more jobs, as we are adding more jobs. These are ideas that I would put into any Economic Growth Act.