Sunday, September 23, 2012

Rep vs Dem model of how economy works


The pending American election poses one big question:
How to strengthen the economy ?

The answer depends on how you think the economy works.


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Republicans think it all comes down to motivation: They believe that many people will work hard and be productive if, and only if, the alternative is starvation. According to this world view BOTH eventual success AND opportunity in the first place are created by effort alone.

In this model of the world the Haitian economy is a mess because people have found a way to subsist with minimal effort. Stop enabling this and everyone will get up off their ass and get to work.

Romney’s magic formula for economic recovery is to make real the threat that your children will starve if you don’t hustle; In his worldview, that hustle is the ONLY missing element for economic recovery.

  
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Democrats have a different model: They believe that effort, though necessary, is not sufficient. Building a business also requires access to consumers, to a workforce with relevant skills, to affordable credit, to usable public infrastructure and to physical security.

Most of all it requires a functional education.
 
Democrats believe that government has a unique role to play in removing barriers to entry to the world of productive activity. Locked doors stand between many people and the marketplace; Government unlocks them.