The problem isn’t deficits, it’s income inequality
by David Atkins
I’ve posted this before, but frankly if I posted this video on the reality of income inequality once a week it might not be often enough:
That we’re still talking about deficits while this is going on, even when inflation is low and U.S. treasuries are strong, is simply mind boggling. This is the #1 problem in America right now.
Remember: the rich do not create jobs. The goal of a corporation is to create as few jobs as possible. More jobs means more overhead; more overhead means less profit. The only reason for a business to create jobs is if employing more people can generate more business to create more profit. And that can only happen if there are paying customers out there.
Fact is, the richer the CEO and the higher the profit, the more that CEO is able to extract from the company at the expense of layoffs, lower wages, and higher prices on consumers.
Record income inequality, record high financialization of an economy, record profits and record gaps between highest and lowest paid employees means a very real theft from wage earners and loss of true productivity, resulting in loss of consumer demand and higher unemployment that ultimately hurts an economy.
That’s what we need to be concentrating on, not deficits. The only other issue that comes close is energy and climate policy.
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