Economic Recovery Leaves Jobs behind

Response to LA Times June 5, 2011 article “Economic ‘recovery’ leaves jobs behind” by Don Lee. See – latimes.com/business/la-fi-0605-economy-fallout-20110605,0,4689863.story accessed June 5, 2011.
The Bush tax cuts funded the investment and move of jobs to China. The major corporations benefited as did the rich since they made more money while American jobs were eliminated. Bush’s solution to the jobs problem was the “ownership society” – use policies to expand homeownership to force-feed the housing sector to maintain employment and growth in the American economy. Force-feeding of the housing sector had the consequence of the financial collapse that was severely aggravated by the trillions of debt incurred to pay for unbudgeted wars. These major structural changes caused by the Bush Administration created a problem for the US that is not solvable within the present global system. Bush policies did have the positive results of vastly accelerating the development of China and India. Rightly these countries owe Bush for their rapid advance in the past decade.
China now has comparable problems to the US – few jobs for college grads. But China now graduates more people than the US. More and more college grads are on the way while at the same time other jobs are being eliminated. This problem is discussed by Martin Ford at http://www.thelightsinthetunnel.com/. Ford sees no solution in education or off shoring. Consumers with money are needed for economies to thrive. Unless we can find a way to have more consumers with more money the economy as presently conceived will collapse under pressures from automation and nanotechnology. Ford recommends taxing capital and not income – if 10 jobs are eliminated the employer would have to pay a tax on the eliminate jobs. This would be very hard to sell.
No mix of tax policies or improvements in education or new technologies by themselves will solve this problem without a major change to the structure of the global economy.
One solution to the problem would be to expand the human environment and thereby create the need for jobs to master this environment. Other forces – emerging food, water, eco-system limits suggest that we are approaching limits to growth in our present environment and need to expand our environment beyond our home planet Earth.
What the global economy now needs is a new frontier with resources that can be put to human use. That new frontier lies in space. This would create millions of jobs especially for college graduates and enable the economy to continue to expand even in the face of automation, networking, nanotechnology and off shoring. Space-based solar power (SSP) could simultaneously create jobs, solve the energy problem and mitigate global warming.
Compelling reasons now exist for accelerated development of industries in space starting with space-based solar power. See – http://www.nss.org/settlement/ssp/


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