Wednesday, June 5, 2013

PB&J in a park. Easy Economics.

Been a very long time since I posted anything here but I had a thought while seeing some rants about the IRS and thinking about my own personal budget which has very little room for anything except the basics (despite the fact that I have what is considered a very good highly skilled job).

Economics isn't that hard.  If middle income people like me had fewer taxes then people like myself could pay down debt and then I would spend more at retail, restaurants and entertainment places that hire non-skilled labor.  If that happened then those businesses could and would hire more non-skilled labor and could also afford to give higher wages and better benefits.  Then non-skilled jobs might not be so bad.

I think the reverse is also true.

Higher taxes mean less disposable income means fewer businesses and fewer jobs (except possibly an increase in govt jobs).  So with a big govt the best hope is for non-skilled labor to work in govt jobs but only the rich have money for restaurants, consumer goods and vacations.  With big govt, everyone except the rich can only hope to eat our PB&J sandwiches at beautiful local parks and go to the local library for any entertainment.

Seems like a simple cause/effect situation to me.  Unfortunately most of America seems to prefer eating PB&J in public parks.

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