By Frank Wessling
The failure of our politics to meet current practical needs of the country is noted above.
One clear way of seeing that is in the so-called debate over a federal stimulus to generate economic activity. We can’t do that in any way adequate to the need, it’s said, because it would add to budget deficits and the national debt.
Yes we can, and deficits will be lessened by the taxes paid on jobs generated by the sales gained on greater activity. We are in a demand-side economic problem, with poor sales feeding lowered production feeding higher unemployment feeding poorer incomes in a vicious circle. The way out of that trap is government stimulation, relatively short term but vigorous and broad in the application. We have not had that.
For proof that our problem is rooted in the demand side, surveys by the National Federation of Independent Business, representing small businesses, find that the number one problem identified by members is poor sales. Not taxes, not regulations: poor sales.
In fact, the concern about lack of demand is currently higher than at any time ever measured by the NFIB, going back to the Nixon/Ford presidencies.
Big business and banks are currently sitting on their money, unwilling to risk it while the American economic engine sputters and millions suffer. History is clear: the engine needs the spark of government stimulus to unclog the pipeline of private investment. It is cruel to delay and frustrate action in this direction.