Me, I'd argue that the fiscal deficit is simply the consequence of corporate America's excess saving: the corporate saving glut - no I didn't mean the 'global saving glut'. Furthermore, the corporate saving glut is manifesting itself into the labor market, creating high and persistent unemployment. Some economists are wrongly referring to this as higher structural unemployment.
The government doesn't need to add jobs, per se, the government needs to figure out how to get corporate America to drop the saving glut and re-invest in the economy.
Its sad that everyone know this but nothing is being done. It will only change when enough people get together and fight back.
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Join date : 2011-02-21
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