| A couple of things caught my eye today that are tenuously related, and I thought I'd share.
Let's start with this post over at the Montana Main Street blog:
I don't know who originally coined the axiom, "First, do no harm," but that is what the government needs to do in order to get us even close to thinking about an economic recovery. As Congress debates and the President presses for sweeping changes in health care, climate change (cap & trade), card check, different tax rates for investors, different rates for income tax payers, death tax revisions, huge financial and banking reforms, and record deficit spending, my question is this - who would want the risk of hiring new people in a time of record uncertainty? And not just economic uncertainty, but uncertainty largely created by government officials and regulators.
It's not an easy time to be a business owner right now, especially a small business owner. I think most are thinking they are safer just treading water than trying to expand, and it's due in large part to many things being debated in Congress right now. If we want to get our people back to work, we must first understand what's been keeping businesses from hiring new people. Tax credits aren't going to get people back to work in any large numbers.
Jon doesn't come right out and say it, but it's the obvious rationale for the policy of status quo - which means deregulation, corporate subsidies and tax breaks, etc & co. Of course, the kicker is this: the crises that are causing so much instability are the targets of the policies Bennion is singling out. The global financial crisis. Global warming. The health care crisis. All of which are the direct results of the kind of pro-corporate status quo that the Montana Main Street blog is paid to represent.
But Bennion is right. These problems aren't going to be solved with your usual run-of-the-mill tax credits. We need something else that address the roots of the crises that face us.
Which brings me to Cory Pein's profile of economist Samuel Bowles:
"Inequality," she says, "really holds us back."
Bowles offers a key reason why this is so. "Inequality breeds conflict, and conflict breeds wasted resources," he says.
In short, in a very unequal society, the people at the top have to spend a lot of time and energy keeping the lower classes obedient and productive.
Inequality leads to an excess of what Bowles calls "guard labor." In a 2007 paper on the subject, he and co-author Arjun Jayadev, an assistant professor at the University of Massachusetts, make an astonishing claim: Roughly 1 in 4 Americans is employed to keep fellow citizens in line and protect private wealth from would-be Robin Hoods.
The job descriptions of guard labor range from "imposing work discipline"-think of the corporate IT spies who keep desk jockeys from slacking off online-to enforcing laws, like the officers in the Santa Fe Police Department paddy wagon parked outside of Walmart.
The greater the inequalities in a society, the more guard labor it requires, Bowles finds. This holds true among US states, with relatively unequal states like New Mexico employing a greater share of guard labor than relatively egalitarian states like Wisconsin.
The problem, Bowles argues, is that too much guard labor sustains "illegitimate inequalities," creating a drag on the economy. All of the people in guard labor jobs could be doing something more productive with their time-perhaps starting their own businesses or helping to reduce the US trade deficit with China.
And think off all the service workers laboring to justify the inequities of our system. Like the Montana Main Street blog. Why, Fox News, too, is essentially "guard labor," isn't it? Working tirelessly to protect the status quo and its economic inequities, producing nothing of actual value?
Bowles' suggestion is a one-time sum of $250,000 for every American when they turn 18, allowing them to go to college or start a business and break individuals out of the rut of poverty. Not sure if I'd go there, but a nice alternative would be to give generous tax breaks to those in the lower strata of tax brackets while levying higher taxes on those that earn more.
Or sumpin... |
