[Marxism] Why not match work to the workforce?
durable at earthlink.net
Tue Oct 13 17:26:25 MDT 2009
How to make jobs, by matching the work to the workforce, and why we
shouldn't do it.
Taxing surplus investment income helped make 20th century capitalism
prosperous, but the very rich led a successful tax revolt. The very rich
hated the 90% tax rates, even though it was money they never would have
spent. They discovered that taxing surplus income is not necessary to
make capitalism work, because government debt will do almost the same thing.
U.S. government debt roughly equals the taxes that investors no long
have to pay. Since so much borrowing by the U.S. government is from
foreign governments, foreign investors or tax sheltered investments,
a return to taxing enough of the surplus investment income is no longer
possible. Globalization and changes in tax policies have limited our
ability to tax most surplus investor income. Borrowing that surplus
investor income is our only option so long as investor income exceeds
the need for investment.
The Failure of Stimulus.
Borrowing surplus income in order to get it back into circulation would
be a functional solution to excessive investor income, but Obama's heavy
reliance on a trickle-down stimulus will make his stimulus program
Trickle down economics is another policy tailored to please the very
rich. The trickle down ideal is that surplus investor income that the
government borrowed should go right back to the rich, as if it wasn't
surplus in their hands already.
Most economists support directing the borrowed surplus income to where
it will be spent, thus getting it back into circulation. Still, we are
immersed in propaganda from the very rich telling us that investors
would invest more and create jobs if they got that surplus income back.
We can't stimulate the economy by giving more money to people that
already have too much. Investors at the top are the only group who are
not going to spend additional income, that's why it had to be borrowed
from them in the first place. It is still surplus income every time it
goes around the borrow/trickle cycle.
Spending on infrastructure is not going to create enough work, and
investors already have plenty of money looking for some place to go.
An effective stimulus policy must break the taboo on direct stimulation
of consumer income. Directing the surplus income of investors to
consumers is the best way to stimulate the economy. Trickle down
stimulus just goes into more speculation and more lending to
the government rather than into the creation of jobs. The consumer
demand that can create enough jobs to go around will require trickle up
But, stimulation to make jobs is the wrong goal. We should only do the
work we need to provide goods and services. It is no longer true that
"the harvest is abundant and the laborers are few." (after 2000 years)
To read about how to provide abundant goods and services without
squandering scarce natural resources see...
More information about the Marxism