Government, not the market, is all that can save our economy. [View All]

[kentuck]

The market has maximized its efficiency. Be it technology, greed, or whatever, businesses do not create more jobs without further demand. A company that makes candy bars will not hire people to make more candy unless their candy bars are selling. The law of supply and demand is still legitimate.

However, we have an official unemployment rate of 9.1% which is, in reality, probably closer to 20%. We have 46 million people below the poverty line. We have record numbers on food subsistence - food stamps.

There is nothing on the immediate horizon to help these folks. They cannot depend on the market, no matter how many tax breaks they might get. Tax breaks are not the solution. Companies do not have a shortage of investment capital. They are sitting on about $2 trillion dollars in cash as we speak.

So what can government do to create jobs? First of all, we need to get a Fed Chairman that is friendly to the working people of this country instead of always favoring the big banks. We need a chairman that can print money for the working people of this country just like he prints money for foreign banks. They presently have no problem printing trillions of dollars for these folks. The President appoints the Fed Chairman.

Once we get a new Fed Chairman that is more friendly to the workers of this country, then we can put people to work on many needed projects and jobs. We also need to get rid of those politicians that believe the "market is God". The market is the answer to all our problems. It is not.

But what about inflation? Inflation is when too many dollars are chasing too few goods. We don't have that problem at present. Companies are making more and more profits by increasing the prices of their products and can sometimes make more profits even if they sell less of their products. They have manipulated the market in many instances.

Oil prices are a huge drag on our economy at present. The big oil companies understand that there will be no taxes on their oil so long as the Republicans control the House of Representatives. Remarkedly, their prices have not fluctuated very much from the $3.50-$4.00 per gallon in the last couple of years. That is a bit unusual in itself.

The market cannot create jobs in this present environment. They have no incentive to raise wages either, since there are millions of unemployed waiting at the doors to work for whatever wage they are offered. Businesses are sitting pretty in that regard.

So the only option left is government. Government will have to put these folks to work or we could go for many years with this same depressed economy. Our country could very easily slide into a depression, Especially with the politicians in control of the House that want to cut spending, rather than expand it. Government must put people to work or the situation will only continue to worsen.