Tuesday, November 1, 2011

Economic Solutions from the 99 percent

James Livingston suggests that instead of corporate spending, more of the spending needs to be in the hands of the consumers in order for the economy to grow. To make this work, he suggests that company income should be put more towards higher wages that can then be spent into the economy than into company profits that would be used for investment and expansion. The changes he proposed would be enforced by government policy. Increased government regulations continue to shift the market farther from capitalism and will limit the ability for the invisible hand of the marketplace to function. Additionally, he says that the economy can flourish while investment spending decreases, which has proved true, but the way he talks about it makes it seem as if he finds reinvestment altogether unnecessary. He does not believe that it can create a sufficient amount of jobs, but at this point in the US economy, any job growth can help. The overall tone of the article, which can easily be seen in the title: “It’s Consumer Spending, Stupid,” seems more interested in the lack of power in the 99 percent and the supposed corruption of the 1 percent than writing an objective piece on the future of the economy.
Morgan K

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