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Hannibal Courier - Post - Hannibal, MO
  • Dave Klassen letter: A good economy

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  • A good economy
    In a good economy, the middle class creates 71% of our economic activity, simply in the normal course of living their daily lives. They get married, have children, buy homes and furnish them. They buy food, clothes, cars, gas, toys and lessons for their children. Sometimes they eat out and go to movies and take vacations. This economic demand is the true engine that drives our economy. When banks demanded higher payments on subprime mortgages, when Romney closed factories and moved jobs overseas, the middle class could no longer spend as much, and our economy went into a shrinking spiral of job losses. Increased spending is the key to fixing our economy - enough that businesses have to hire to meet the increased demand. Where can this spending come from? Not from the middle class - they’re tapped out, that’s how the recession started. Businesses won’t - they only spend and hire enough to meet demand. Tax breaks to rich people don’t work - there aren’t enough of them and they will save the money, not spend it. State and local governments can’t - the recession has reduced their revenues and they are constrained by balanced budget rules. Like it or not, only the federal government can choose to spend enough to fix our economy. The President’s jobs bill would create one million jobs, and employed people spend money. Unemployment benefits. Aid to local governments to rehire teachers, police, nurses. More spending, more jobs.
    Dave Klassen
    Hannibal

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