Government, not the market, is all that can save our economy.

[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.

[annabanana]

1. check check. . goosing demand is the way to go. . .n/t

[kentuck]

2. If government should be the employer of last resort...

then we are down to the last resort.

[RKP5637]

3. Excellent analysis/recommendation IMO!!! n/t

[Major Nikon]

4. 70% of the US economy is based on consumer spending

Supply-side is a myth and always has been. In the instances where it has been applied, it has failed miserably.

[kentuck]

5. But Republicans cannot say "supply-side is a myth" because...

then they would be saying that Ronald Reagan is a myth. They just can't bring themselves to that uncomfortable truth...

[drm604]

6. Very well put. K&R

:kick:

[happyslug]

7. The U3 unemployment is 9.5% in August 2011, the U6 rate is 16.4%

http://www.bls.gov/news.release/empsit.t15.htm

U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force

U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force

U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate)

U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers

U-5 Total unemployed, plus discouraged workers, plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force

U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force

NOTE: Persons marginally attached to the labor force are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not currently looking for work. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. Updated population controls are introduced annually with the release of January data.