SPRIGGS: Solving Inequality
William Spriggs, Special to The Informer | 3/10/2014, 9:02 a.m.
Third, is the often repeated fallacy that businesses alone create jobs, because government needs tax revenues to provide services. So, government does not create jobs unless the private sector creates the income to tax. But, a restaurant or airline does not create revenue. Workers have to have incomes to demand products to create the revenues for restaurants and airlines.
There is a circular flow of money and economic activity between government, business and the household sector. The business sector needs the government to enforce contracts, provide the infrastructure of roads and port facilities to move their goods and a literate workforce. The business sector also needs well-paid workers in the household sector to afford the goods and services the business sector sells and still have savings to provide the investment funds for business to expand. So, the business sector is not an island.
Public demand must not be squelched by the plutocracy, because the government reacts to one person, one vote and is democratic. The plutocracy wants the economy run by their votes. The bottom 60 percent of households need more than 38 percent of the economy to thrive. That can't happen if we don't see that the solution is job creation to get the more than 300,000 public-school teachers, whom our children have lost since the recession began, back to the classroom.
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