Fixing the Economy 101

Minwage3

Minwage3 (Photo credit: Wikipedia)

Years ago while conversing with some young fellows.

It was probably 6 or 7 years ago. A group of us were discussing the dismal state of the economy here in the United States. I made a statement… If we expect this economy to get back on its feet, we have to find a way to get some money into the hands of the middle class and the working poor. This statement was made based on my opinion; if we get some expendable income to these people, they will indeed spend it.  This will have a snowball effect creating a robust economy.  I still hold those beliefs and share them here today.  Garnet Lewis, a candidate for Michigan’s 32nd district senate seat, just asked a question on Facebook about what can we do to create jobs in Michigan .

I did not respond to the question on Facebook, but am doing so now.

Best and quickest short-term solution would be to raise the minimum wage. I know this goes against the message that has been burned into our brains for years but, statistics do prove that raising minimum wage does increase jobs.

Another quick fix would be to start investing in repairing our infrastructure, we all agree this is a much-needed item and I think we should fast forward this action.

On longer term solutions we should invest in education for all our children. A well-educated work force is a draw for investment and increases the value of our workers.

Just a few quick thoughts today, busy schedule.

And you heard it here first; a team from the state of Michigan will win today.

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4 thoughts on “Fixing the Economy 101

  1. Quick comment from an article by Robert Reich: ” … just about all members of Congress are drawn from the same top 10 percent – as are almost all their friends and associates, and even the media who report on them.

    Get it? The bottom 90 percent of Americans – most of whom are still suffering from the Great Recession, most of whom have been on a downward escalator for decades – have disappeared from official Washington.”

    http://readersupportednews.org/opinion2/279-82/20201-why-washington-is-cutting-safety-nets-

    We don’t even exist as far as Congress is concerned!!!

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  2. Interestingly your chart begins at the year of my birth and clearly shows anyone my age has been screwed (except for Bill Gates and my first four girlfriends).
    Minimum wage increases have always been followed by strong economic improvements within 18 months but it does keep a few pennies out of Daddy Warbuck’s change purse.
    Investment in infrastructure has always improved economies in the U.S. while the work was taking place and during the years after, when our strong infrastructure (including schools) provided us with a competitive edge. Right now would be the perfect time to borrow and invest in infrastructure. Money can be had for nearly 0% interest but conservitives I’m sure would like to wait until rates are higher and the need is greater so their wall street buddies and bankster pals can make enough to buy the next election. The cons confuse infrastructure spending as big government waste and pork not considering the same actions in the corporate world would be considered sound investment.
    We have to balance our family budgets they shout, so should the government. Well OK. The average young family with a newly mortgaged home (infrastructure and future security) , automobile loans, student loans and average credit card debt are living, on average at 400% of their family’s gross domestic product. The U.S. debt is less than 100%. So I say right now, today, seems like a great time to invest in ourselves, lift millions out of poverty, rebuild the middle class, reduce inequality (and all the crime, addiction, lower test scores, domestic violence, unwanted pregnancies and suicides proven to be caused by inequality) and realize the potential we all hold. Raise minimum wage. Invest in infrastructure. Pass a jobs bill (anyone remember what republicans campaigned on in 2010?) and maybe even come up with trade policies that help American workers get ahead as much as corporations have in recent history.
    Finally in spite of or maybe because of my ranting; at least one Michigan team won today.

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