The Issue Is Not How To Best Implement Austerity

Austerity is not the answer but an increase in aggregate demand will increase the employment in America and the tax base. For example,  a factory has 1,000 employees. Then came 2008 and we had a crisis. The company had to eliminate 400 jobs. At it’s new reduced rate of employment the company was able to meet it’s demand for it’s products.

Unless this company has an increase in it’s demand for their products they are not going to return their employment level back to 1,000. That increase in demand will not come about from the private sector. We need a strong robust stimulus.

But what about giving the company a tax break?

Wrong they will only use the money to pay off their debts or pay a bigger dividend. Why would they hire anyone? They are not a social service agency. They can meet their demands for their products at their new lower level of employment of 600 employees. What they need is an INCREASE IN DEMAND for their products.

The Question Is Not How To Best Implement Austerity But How To Increase Aggregate Demand

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“Necessitous men are not free men” as FDR was often quoted as saying. The Republicans are striving to create a nation of necessitous citizens who are not free but subjugated to the whims of the corporation. This is not freedom.

When will Barrack Obama realize that the situation requires a “Pontifex Maximus” who will define the issues rather than a Carl Rogers facilitator?

Austerity is not the answer. It will lower aggregate demand. As the speaker in the video above states “that is why we have a government”, to fix situations like this.

Yet Barrack Obama continues to see the issue as “how can we best implement austerity”. His implementation may be a better answer to the austerity question  than the Republicans.  But Barrack Obama is responding to the wrong question because he has not risen to the occassion to set the national agenda.

Barrack Obama has allowed the Tea Party to define the issues facing our nation even if the Democratic Party has some what better answers than the GOP. The answers are for the wrong question.

Stop making excuses for Obama and his fellow travelers to plutocracy! With the rate of off shoring, even if we increase aggregate demand the resulting jobs may be in China. This is not “change we can believe in“!

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