Monday, May 7, 2012

What the Economy Needs Now (Not Love, Sweet Love) (Okay that's a Boomer joke. Sorry.)

Despite what Mitt Romney says public sector jobs are needed right now.

Let me explain in case you have forgotten:

 A teacher, a firefighter, and a cop (all three currently unemployed) walk into the unemployment office and find that low and behold there is a job offered by their state or local government.

One of them takes that job.

In a couple of weeks or a month he or she has a paycheck.

The new hire cashes his or her paycheck utilizing a teller who is working a private sector job.

The public worker then takes the money the or she earned with that paycheck and pays rent, pays his or her bills, buys gas, and buys stuff in stores, authorizing a bucket load of private sector jobs.

And Voila'!

Recovery happens, especially if all three workers  (or three or more workers in any public field) find jobs opening up.

Money is like electricity.  It doesn't work unless it's moving around.  That's why trickle down economics don't work.  A family can only spend so much, and the rest they stash.

Though the rich keep proclaiming that they will hire more workers if they get more money from the government, that's not true.  They seem to spend the most of that money sending it to campaigns of people who promise to funnel more money their way, and use propaganda about how "trickle down" helps an economy as a means to keep the masses quiescent about the hardships their families face.  

Workers are not hired if there isn't demand for the goods and services they produce, no matter how much money the rich have.  They aren't fools.  The will use their money only to buy what they want and hire people to make stuff they need.  If the stuff they need in fact isn't produced in the US that doesn't add to US manufacturing, but at least it adds to necessity of sales clerks and possibly of delivery drivers.

The Democratic target is usually to send money to the lower middle and working classes in small increments because that is most often spent on necessities that are more likely to be made in the US.  Large quantities of money often end up in a savings accounts and don't help the economy. 

Feed a female mouse with a mate and take care of her and her offspring and you can see this effect for itself.  (Hint do not actually try this at home.)  The population increases exponentially, which is why pest controllers will never lack for jobs as long as people can afford them.