January 3, 2011

The problem with our economy is that we have few jobs available for those who want them. This means there are fewer dollars in the economy to keep our consumerist society running. Now with the economy in crisis, people are hanging on to their cash and generating debt... at least not as much as they did.

However, it is the business groups that don't get it. They think only of the short term and profits for business owners. This means the employee becomes solely an expense dragging down their profit and salary reductins and layoffs are easy to make. What is difficult is to figure out how to maintain and even grow a business in difficult times.

The basis of our economy are consumers who make a living wage. When they have enough money they spend the difference between their needs and wants. When that stops everyone suffers.

However, businesses don't get that. They want to slash salaries and demand governments give them incentives to hire people. They even want to reduce the minimum wage or even get rid of it as if these are magic pills to their success.

They really don't get it.

The real average wage for Americans has not increased in decades because businesses don't get it. They think tax cuts for the rich stimulate the economy. It didn’t for the past 10 years, and it won't in the future.

Maybe the business groups like taxpayers associations and chambers of commerce haven't really been in business, at least not in one where people are employed when there is a need and where businesses compete for workers by paying wages and benefits equal to or higher than their competitors so there produces are made and sold.

Capitalism means we are all in it together and salaries are the fuel to keep things running.