Archive for Tuesday, February 10, 2009

Jobs are key

February 10, 2009

Advertisement

To the editor:

In good times, and now in bad, conservatives have the same chant: “Let people keep more of their own money.” Thus the Republicans keep pressing for lower taxes to stimulate the economy. But the key now is employment. People who are afraid of losing their jobs stop spending. The downward spiral has to be interrupted.

But in scary times, lowering taxes doesn’t increase jobs. What business adds workers because their tax rate has gone from 25 percent to 22 percent? They add workers because they have purchasers of their goods or services.

But what about consumers? Sen. Brownback argues that “citizens” know best how to spend our own money. In normal times, that’s no doubt true. But hardly anyone feels financially secure right now. When times are scary, most prudent people will save their tax savings, not spend them.

The government needs to do two things now. First, force mortgage interest rates lower so homeowners’ lower payments can reduce foreclosures. Second, fund important projects which have been neglected for many years and which create American jobs right now. Fixing bridges and roads, replacing unconscionably dilapidated schools, making us competitive in Internet access and upgrading our electric grid are important projects and will create jobs immediately.

Especially in extraordinary times, this is no time to add failed local and state governments as part of the problem. It is time for our political leaders to support future prosperity. Lowering taxes is not the answer.

Oliver Finney,
Lawrence

Comments

labmonkey 6 years, 2 months ago

The government rarely does anything right, so why should they spend more of OUR money? Why not audit the government and see where cuts could be made to save money and move money to these projects? This "Stimulus" package will only worsen our economy for years to come. When the average person is in debt, the last thing they should do is spend money on wish-list items which is what much of this package is. They need to make cuts wherever possible and only spend on necessary things.

booyalab 6 years, 2 months ago

"Sen. Brownback argues that “citizens” know best how to spend our own money. In normal times, that’s no doubt true. But hardly anyone feels financially secure right now. When times are scary, most prudent people will save their tax savings, not spend them."Would someone explain to me why people are supposed to spend themselves broke in a recession and how it's supposed to help the economy when no one is thinking about the future and everyone's in bankruptcy?

John Hamm 6 years, 2 months ago

Where do all these people who believe the government knows how to spend my money better than I come from?Is there some government run cloning facility of which we're unaware?Let it fall. Let it all fall then pick up the pieces and rebuild.

Chris Ogle 6 years, 2 months ago

When times are scary, most prudent people will save their tax savings, not spend them.-------------------------------------------That statement defines our problem. Americans don't save until things get scary.

VTHawk 6 years, 2 months ago

Mr. Finner:I assume that you have an economics degree and/or some sources for the "lowering taxes doesn’t increase jobs"statement. Right? Because most economists would point out that creating new social programs, as well as loosening welfare restrictions, actually leads to a higher natural rate of unemployment. Cutting taxes doesn't.

RobertMWeaver 6 years, 2 months ago

There is an easy solution to all this mess. We just need to form an association in which we all put certain amounts of money into during good times. Then in bad times when nobody is spending and unemployment is high, that association will start spending to get things going again. They will absorb some losses so that we don't all go bankrupt in the meantime. When things recover we can give more to this association in good times.

oliverfinney 6 years, 2 months ago

vthawk:I do not have an economics degree; limiting public discussion of issues of national importance to economists would be inappropriate in a democracy.You should note that I predicated my comments about tax cuts on "in scary times." That's obviously a different environment than during normal periods of economic growth. Do you want to address my assertion that in times of stress, both individuals and businesses tend to save rather than hire or lend? Can you explain where the first $350B given to the banks went? As far as I can tell, it went onto their balance sheets, not back into the economy. They're not going to lend until it looks like borrowers my be able to repay their loans.Finally, I said nothing about "new social programs, as well as loosening welfare restrictions." I agree those sorts of initiatives seem inappropriate in the stimulus bill.

tonytiger 6 years, 2 months ago

"Fixing bridges and roads, replacing unconscionably dilapidated schools, making us competitive in Internet access and upgrading our electric grid are important projects and will create jobs immediately" Building schools is not a function of the federal government. Those that need internet access are not denied it; it just may not be cheap. I don't think the electric grid is not owned by the federal government and shouldn't be. And how does any of the quoted above "create jobs immediately"?

jafs 6 years, 2 months ago

All of those projects require people to do them - so they obviously would create jobs immediately if the projects are ready to go.

Richard Heckler 6 years, 2 months ago

Stimulating the economy will require major steps: ending the mideast invasion/occupation. The world does not accept this concept and USA citizens cannot afford $3 trillion dollar wars Stop electing the PNAC Republican war machine to elected positions :a. http://www.ecapc.org/pnac.aspb. http://www.oldamericancentury.org/pnac.htmc. http://www.informationclearinghouse.info/article1665.htmd. all incumbent republican candidates subscribe to PNACe. the world has no respect for the republican PNAC war machineNext:New source for jobs jobs jobs that cannot be outsourced Demand National Health Insurance - this will save tons of money for 95% of citizens Increase expenditures in public education and Vocational Technical Training a significant tax break to the middle class - this increases spending and they pay the bills. Stop bailing out Wall Street - That money would be better spent on National Health Insurance or Vocational-Technical educationStop the corporate american welfare free lunch program. Local taxpayers get burned :http://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americansCorporate american free lunch money would be better spent on National Health Insurance,Public Education and Vocational-Technical education

Commenting has been disabled for this item.