MIDDLE CLASS AT END OF LINE

WHAT REALLY CREATES JOBS

Submitted by Linda Gruer Mason County Progressive

It is simply incorrect that the rich are "job creators" and increasing any taxes on them will make our economy worse. Taxes on the well to do are the lowest in over 30 years and if they were the real job creators with such low taxes we should be drowning in jobs by now!

Real job creation is caused by middle class consumption. If no one can afford to buy anything, a capitalist will not hire anyone to provide the product. So our real problem is the decimation of middle class buying power. For several decades, real incomes of middle class Americans have been flat (real income means adjusted for inflation). Trying to keep up, first both men and women in the family went to work. Then credit card debt went up. Then houses were used as equity for loans. Middle Class is at the end of the line.

What to do? We need policy to rebuild the health of the middle class, including taxing the rich, increasing the capital gains tax, taxing the financial system such as for derivative trading, and use the money to create infrastructure for main street. That is just the beginning.

Every teacher, policeman, highway worker, and yes federal, state and local government worker that is laid off means less spending in the economy and a spiraling downward of jobs and the economy. It is called the multiplier.

In short, there will be no robust recovery until this is addressed.

By the way, the inspiration for writing this column is an internet video. Take a look -- it's great -- a five minute clip by a rich capitalist, Nick Hanauer.

Photo: www.thesocietypages.org

SHELTON BLOG NOTE:

Link to KMAS News Voters Guide:
http://masoncountydailynews.com/news/voter-guide-2012

Link to Progressive Voters Guide: 2012 Primary Edition, Mason County
http://progressivevotersguide.com/2012/washington/primary/county/mason/35th