All About Jobs

With all of the talk revolving around the cliff, the deficit, spending, and the like, both citizens and Congress overlook the one consistent factor that is causing all of the economic problems.  That is a lack of well paying middle class jobs.   Much, if not all, of the country’s economic growth in the past was fueled by a growing middle class.  Unfortunately, around 1980, economic and tax policies stopped favoring the average, middle class and tilted toward s the very wealthy.  Top marginal tax rates declined, taxes on estates and on capital gains were also reduced and all government financial incentives benefited those at the very top rather than the average worker.  At the same time globalization, significantly aided by the aforementioned tax policies resulted in a mass shift in the types of jobs necessary to continue economic growth to less developed countries.  Today, the percentage of GDP from hourly wage earners is half of the pre-1980 levels.  In addition to resulting in a suppressed economic activity from those who are most necessary to maintain the country’s economic growth, this reduction in the percentage of GDP from wages has resulted in a drop in contributions to Social Security, Medicare, and other entitlement programs.  Conservatives look at this drop and claim the entitlement programs are not sustainable and must be scrapped.  Conservatives have always been opposed to both Social Security and Medicare and have since the inception of either, tried to find ways to either eliminate or privatize either program.  The reality is that Social Security and Medicare are the two reasons  the elderly have not joined the millions on the unemployment lines looking for jobs to replaced those sent to China and other off-shore locations.  Whether created by the private sector or by government, the need today is more people earning a paycheck.  The private sector will not actively create more jobs without increased demand for products and services.  This leaves the task of job creation up to the public sector.  Once again, conservatives look at this “fix” and try to put up barriers to prevent more government spending.  While claiming to be on the side of fiscal responsibility and small government, history has proven these assertions to be false. Government grew far more under Republican Presidencies as has spending on the part of government.  The conservative opposition to spending is a fraud perpetrated by those at the top, who are the biggest source of funds for conservative politicians.  The reality is that since 1980, the only real beneficiaries of economic growth in the United States has been those paying the top two marginal tax rates.  Until government begins to fund infrastructure maintenance and repair job growth will remain stagnant and the country’s economic status will remain precarious. The solution to our problem is jobs, jobs, and more jobs.