Today's Laura Tyson article in New York Times' Economix blog spells out in much more detail than my earlier post just why we don't have more jobs and what to do about it.
What's wrong?
Insufficient aggregate demand. In other words, not enough people have enough disposable income to buy stuff.
What to do about it?
Hire more people. Build more roads and bridges. Government spend more money.
What not to do about it right now?
Reduce spending.
What else not to do?
Don't raise taxes on poor and working people.
Can we raise taxes on anybody without crashing the economy?
Yes. Raise them on our richest people.
Why? They'll never notice. Won't reduce their spending at all.
Why else? The economy will work better.
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