Policies prevent full employment

Policies prevent full employment

Economic production is limited by the availability of resources and workers (and the imperative to use these ethically), and the skills and tools of workers. If resources and workers are unemployed, why aren't they brought together to create full employment and provide an adequate, universal standard of living?

The answers relate significantly to the creation and use of money — sovereign money created electronically as credit money by the Federal Reserve. There can never be a shortage of money, which is unrelated to precious metals. Yet we are told that our governments are "broke."

This is nonsense, because the principal on the federal debt does not have to be repaid, and interest can be repaid by the Federal Reserve itself; and because in our overall national accounting, it is only federal debt that can allow families and businesses therefore to be in surplus — to grow and prosper.

It is also nonsense because when money is needed for war (and related corporate profit), it is never lacking.

Such nonsense is consistent with neoliberal ideology and policy: "free trade" that uses governmental regulation to protect patent monopolies and privileged professions; governmental austerity that targets the poor; and the elite-serving rationalization that extreme economic inequality reflects an educational meritocracy.

It is only massive federal spending on basic human needs — housing, education, (single-payer) health care and conservation — that can provide the basis for responsible and egalitarian growth in the private sectors. Corporate "job creators" and their political, academic, and journalistic hucksters blatantly oppose general prosperity while enriching themselves.

DAVID GREEN

Champaign

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