Thursday, February 21, 2013

See Progress: Video: Heather Boushey: Middle Out Economics 101: How to Create and Economy That Works For Everyone



I agree with the first minute of the video as far as what it takes to have a strong economy. Where the most people possible would have access to economic freedom in this country. With fewer poor people, more middle class and wealthy people. As far as human capital a system where all Americans have access to a quality education going through higher education. And then being able to continue to educate themselves as adults as well. That we need a strong public infrastructure system. Roads, bridges, airports, schools and so fourth. We also need demand companies need customers to sell their products to and customers who have the money to buy. Their products but how is demand created, customers with money to spend in need of products and then a market and competition. Thats producing those products and to lower the trade deficit in this country. We simply need American companies producing products that Americans want to buy and prefer over the. European and Asian competition as well as other places. Then you need a regulatory system thats understandable by the regulators and companies but is smart and does a. Good job and doesn't try to run companies and doesn't allow companies to get away with unfair trade practices.

The only two things I would add to that is we need a public assistance system as well as tax system. That encourages work, independence and success over dependence because no matter how high a quality of an economy we eventually built. As well as an education system we are simply going to have people who make bad choices in life. Have kids before they are ready, walkout on their kids, not finish school and not have enough skill that will allow for them to be. Successful in life so similar to the last blog I wrote we need a safety net that catches people like this. Pun intended but helps them get themselves backup with access to education and job training so they can go to work and have a good job. And be able to work themselves off of public assistance which are all things we can do in this country because we have the resources. To create such an economy.

The only thing I would add to that is you need the Federal Government to get out of the way and to allow for economic and job growth to happen. With a strong fiscal policy that eliminates borrow and spending, passes down power from the Feds to states and local whenever that makes. Sense like as it relates to public assistance and education. And only does the things that we need it to do which I laid out in the second paragraph.

Roosevelt Institute: Economy: Annette Bernhardt: Raising The Minimum Wage is a Step Toward Economic Freedom: How to Encourage Work Over Dependence

Raising the Minimum Wage is a Step Toward Economic Freedom

One of the things I don't like about our current public assistance system, well there are lots of things. Its hard to pick one but in the interest of time for anyone who might read this as well as my own time. I'll settle for one in this post and one issue gets to the heart of why our public assistance system isn't as. Effective as it should be and can be that people can literally make more money not working if you add up all of the benefits. Then they can make working so if you are a low skilled person and you have a choice of working a minimum wage job. Or a job that may pay a little more then that, lets say 8-9$ an hour or not working and being on Welfare or Unemployment Insurance. And you have bills to pay, perhaps kids to take care of and so fourth, unfortunately you are probably better off not working. And getting on public assistance and hopefully at least there they'll push you to get back in the workforce or. Get in the workforce period and show you how you can improve your skills so you can get yourself a good job and work your way off of. Public assistance all together.

What increasing the minimum wage or creating a living wage in America would do is reverse that. And what we could do is flip those things around and have unemployed people who are dependent on. Public assistance make less then low income workers and have the unemployed low skilled worker only make. What worker with their skills would make which is like 7.25$ an hour over forty hours a week fifty two weeks a year. But allow them to still collect things like Medicaid, food assistance, public housing and so fourth, its just that low skilled workers would make more in direct income. Because instead of getting paid 7.25$ an hour and working full time, now they are making 10$ a hour working full time. And if you are unemployed and on public assistance you'll see this and see that you could make a better living. For yourself working even a somewhat low wage job and make more then not working at all.

You want more people working and less people not working and collecting public assistance. Then working simply has to pay more then not working which is just one reason why we should increase. The minimum wage in America.