I had just read an article on the Huffington Post by Jeffery Sachs on his disagreement with Paul Krugman, where Sachs claims that Krugman is a crude Keynesian. Where Krugman argues to ignore the deficit and do more general spending and Sachs says we need more structured spending. It appears to me like we are stuck in a redundancy loop of thinking. Cutting taxes or should we increase spending? I will take a leap and say that Dr Krugman and Mister Sachs are both wrong. Their minds are locked-up in government fiscal polices and ignore social policies, all together.
Heck, we could cut government spending and give tax breaks, too. What has to be done is address the social science spectrum of the economic issue, but it would have to be a bold political move. Instead of using the government as middlemen in our economic growth, let us give power to the people. When I say that, I am not talking about the people of the head of corporate boardrooms and their political cronies, but to the common working person. First off, working people needs to be empowered. For 40 to 50 years, there has been a slow, but steady destruction of worker’s rights in this country. Even now, there are plans to make even more states Right to Work (for less) states. Another evil is At Will laws, where an employer can fire an employee, at will, meaning for no reason. Uncertainty in markets is created by uncertainty in spending. Who wants to go spend money when you don’t know if you have a job tomorrow? Who wants to start a business when you are not sure you will have customers? First off, The Taft-Harley Act needs to be repealed, restricting the bargaining power of unions. We need the Card Check legislation passed to make it easier to form unions. At very least, Right to Work laws should be modified where those who choose not to join a union loses union protection. That is only fair. Even if you are one of those rugged individualists that does not want to join a union, you should be given a valid reason for being fired. You will have the option to sue if the firing was invalid. If you know you are doing a good job, you will know you will have a job tomorrow. That will free up both cash and credit spending. To get this, we will have to do away with At Will laws. The nation’s legal system has been perverted away from working people to the side of the corporations and that has to change. Lastly, all trade agreements must be renegotiated to benefit American workers and ending tax breaks for exporting out our jobs.
This is what a real grand bargain would look like. Minimize the corporate and business taxes in America. That will end the need to offshore corporate revenues. Create a program of national labor rights that all states must abide to. GIVE ECONOMIC POWER BACK TO THE PEOPLE. With that, they can make high wages that creates a tax base to support the smaller government. Could it happen? It depends whether our government is interested in a stable economy or if they are only interested in the power to give or take crumbs from the people.
For all those concerned about all the other issues, mass economic power equals mass political power, as well. So, there will be the economic stability for the masses to become political in saving the environment, protecting human rights, and securing bedrock issues like Social Security and Medicare. Right now, we only have learned helplessness and hopelessness, leading to criminality and drug abuse.