Sunday, April 3, 2016

When will the time come for the Democratic vision of Keynesian economics to begin? (#2620)

     What is Keynesian economics? In short it is a mixing of private enterprise with public policy. Where the private sector cannot alleviate an ailing societal economic symptom, the public sector comes in to fill the void and prevent erosion of an otherwise healthy economy. A combination of private and public spending that serves the will of the people. Our social programs are one such entity, whereas the private sector fails many who cannot climb out of poverty, the public sector comes in and gives a helping hand up. Remember, private enterprise is all about maximizing profit, not ensuring a stable and growing economy.
     Republicans have not held Keynesian economics to any regard and instead believe in an austere approach where capitalism is left to it's own devices and the free market as it's only regulation. You know, if people don't like it they won't buy it or if they like it they will buy it. There are many problems with this approach; first there are no safety nor quality controls that balance out the good of society as opposed to those who seek to make profit. Second, as has been shown, the free market seeks out the widest gap between low wages and high prices. What the eventual reality becomes is that there are not enough earners to buy many products. So many go without while a few have all they need. Again, not a fair balance within our democratic society.
     What Keynesian economics will do for us is create public sector jobs for federal or state workers as well as jobs for private contractors to bid on. Make work projects that serve a societal function like infrastructure repair and replacement. Not only does the fixing of our infrastructure give us a more attractive business friendly allure but it also provides safety to those who utilize the technology. While the upgrade is significant in attracting new businesses the greater good of supplying jobs to our citizenry and the buying power that creates stirs economic activity across a wide range of manufacturing and retailing outlets. Which then create more jobs because of the higher demand. All the while new taxes are generated and returned back into the public coffers. Win/win.

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