Thursday, September 22, 2011

Worst job creation decade

Its now official, the first decade of the 22nd century has been an economic disaster for many Americans. Earnings for middle class Americans have been been lagging since the 1970's, but since 2000, income has actually declined while inflation adjusted prices have risen. The Economic Policy Institute (EPI) has a more detailed report. Despite the lowest tax rates in 50 years, the United States is hemorrhaging good jobs, and the rate of job creation (any job creation) lags the loss. Where are the job creators? Over taxed they are not. Over regulated? Perhaps, but I tend to think job creation originates with demand. The engine for demand is the 95% of the population that either has nothing to spend or is too scared to spend it. A millionaire tax is too little to erase the deficit, and correspondingly, lowering taxes (again) for millionaires wont liberate job creators sufficient to make a dent in unemployment.