I am still amazed by questions such as this last one: "How are jobs created?"
There is only one answer: By the expenditure of investment capital.
Often in US history, there was an abundance of capital expenditure. Virtually everyone who had 'extra' money, especially the wealthy, invested it. In the last century however, there were two exceptions: The Great Depression and the Great Recession. During the Depression, investors lost a lot of money because of poor financial regulation. Jobs only returned when the government funded huge infrastructure projects, which then turned profits for companies, which then stabilized the economy as private investment replaced public investment.
The Great Recession of 2008- is a little different because only a segment of investors lost their fortunes, but again, because of poor financial regulation. Many of those who still retain their fortunes are simply sitting on those investment funds because they are 'afraid', or more likely, just because they can. Why invest when you gain only a little in these low interest times, and, when you could lose it, like some of your peers have? So we have a repeat of the 1930's, and the obvious answer is that the government must jump start the process, once again, by funding large scale infrastructure and R&D projects. The subsequent reemployment of millions will convince private investors to join in with their start ups and expansions. The economy will stabilize. When it does, the government can back off on public investment again and move toward surplus and deficit reduction. If it's too 'scary' to pay for public investment strictly by adding to the deficit, then taxes must be raised. THE MONEY MUST COME FROM SOMEWHERE.
As long as Republicans will not budge on any increase in the deficit or any increase in taxes for anyone, there will be NO NEW JOBS.
What could be more simple.
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