329. down economy and rescue by credit
March 2, 2010 § Leave a comment
This shows the rhetoric behind using credit to stimulate the economy. Credit mostly helps bankers, not the rest of us. There really needs to be an alternative. A fully green economy with support services is preferred. mix high tech projects with land and park restoration for lower level jobs. Get everyone involved.
The US economy simply can’t run on 20% unemployment. Consumers will go to the mattresses, retail and service business will drop like flies, investors will pull in their horns, and things will get worse. The only way to reverse the problem is to persuade capital to take more risk, and the only available policy lever to accomplish this is the elimination of taxes on capital income–interest, dividends, and capital gains. As the Obama administration is proposing the precise opposite (an increase in taxation of all these categories supposedly for Medicare) it is more likely that policy will aggravate the problem rather than cure it.