Posted 5 years ago on Nov. 27, 2011, 2:57 p.m. EST by mikebert
from Kalamazoo Township, MI
This content is user submitted and not an official statement
Through the Tea Party, the Right has developed the meme that our economic problems stem from excessive debt--in particular public debt and call for austerity to restore prosperity.
I would like to suggest a counter meme:
One person's debt is another person's asset.
If excessive debt is the problem, this means excessive ASSETs are the problem.
That is, there is too much wealth needing investment relative to the size of the economy. As a result, there is excessive demand for assets.
This drives asset prices up and brings new classes of assets (e.g. mortgage securities and CO's) to market. The former leads to asset bubbles which destabilize the economy (e.g. the 2008 panic) while the latter has led to financialization of our economy. Both have adverse effects on job creation and income growth.
The solution is high taxes on high incomes in order to reduce the funds available for investment so that old fashioned asset classes like stocks and traditional bonds can accomodate the remaining flow. That is...
DRAIN THE SWAMP (of excessive wealth) that is impeding economic growth.