Economic Stimulus Requirements

Any economic stimulus package that places money into the hands of corporate America will fail. There is no way on Earth you can trust the greedy bastards that lined their own pockets at our expense to get us out of the economic mess they engineered. It is only by some form of liberal spending agenda that we can emerge from this mess, and there are way too few people with available cash to spend due to the economic incentives of the Bush administration (giving more to the have and have mores ensured very little money would be spent). The only nation that has tailored its stimulus package to maintain growth is China. They are putting the bulk of their money into the hands of those who drive the economic engine, spenders.

Corporations are duty bound to create profit for their investors and do so by getting the cheapest labor possible to make their products. That is why whenever layoffs are announced by a company, its stock tended to go up. Conservative’s look at a trend like that and say that layoffs are good for business. That is only true when there is sufficient growth taking place to absorb the displaced workers.

When people lose their job, they cut out unnecessary expenses (toys, cars, televisions, etc.). These reductions in sales lead directly to less demand for goods which drives down prices and profits. Further pressure is put on corporations to reduce the workforce in order to maintain profitability. It is a downward spiral that is difficult to get out of.

If conservative business interests are allowed to control purse strings, this downward trend will continue. It is almost always possible to find a place with cheaper workers and lax environmental laws, even more so when money is placed into the hands of people in power. Yet the only way profits can be made is when money is spent by the consumers, who buy the goods. Moving your production costs into a cheaper labor market reduces the potential sales of products in your home base, and unless that labor market can also afford your product, you effectively ensure a downturn in your company. It is by raising the standard of living in those markets that you expand your economy, not by exploiting the people.

The auto industry is not going to be able to expand let alone survive if people can’t afford their cars. Executives at GM, Ford and Chrysler ensured their doom by not keeping their production facilities here. Retooling and keeping the workers would have ensured that the people that work for them would be likely to buy cars. Most people that were let go by the Big 3 when they did find a job elsewhere, no longer had an incentive to buy an American car (if you can call a car that has had many of its components subcontracted out to foreign workers and merely assembled here, “American made”). On top of that, when other countries were forcing car makers to make fuel efficient cars, our big 3 were conspiring with the oil companies to build bigger fuel guzzling vehicles. When the oil companies got real greedy, look at who got shafted big time.

In order to get Americans spending again, well paying dependable jobs are required. One easy way our government can lift a heavy burden falling on industry is to provide a single payer healthcare for all Americans. If all Americans have coverage, the burden is shared by the broadest possible group and costs are reduced accordingly. If corporate big wigs put money into the hands of their workers, instead of their own pockets, there is a chance the economy can pull out of its death spiral. The goal should not be to ensure profits at the expense of workers, for in the long run that benefits no one.

The more equitable a worker’s pay is relative to the corporate leaders’, the better the chance that the worker will spend money. The reason for this is simple, Americans tend to spend excess cash rather than to save it. We have the desire for wrapping ourselves in cocoons of comfort and have no illusion of becoming overly wealthy. We work hard and play hard. We tend to save just enough to get the toys we want and are not miserly for the most part. Get us secure enough to spend again, and we will show the World the way to prosperity once again.

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