Mitt Romney’s PayCheckism

http://www.cbsnews.com

 

Candidate Mitt Romney on CBS News tonight explained the stall in jobs and paychecks alluding to Obama Administration policies.  With his remarks is a fiscal “bon mot”  of the amount of money out there to finance an economic recovery – but the noted irony that paychecks are not increasing nor are jobs.  His explanation is a veiled reference to investors with a “hedge” factor.  They cannot without certainty and confidence in the economy invest in a jobs creating posture, and instead hedge –in the bank – in safe non-employing investments to retain their capital and investment capacities.

OK, you’d say .. this is what preluded the New Deal, after which, the hedging was reduced in an exchange of “employ and invest in employment” or see it (the capital) taxed.

We have issues and a fundamental economic address for the 2012 elections Ladies  and Gentlemen.

By the way, Newton Gingrich reminds many people, rather frequently, that he (Mr. Gingrich) makes money.  How and as what?  One might query.

 

As a further lesson involving good Keynesian modern economics, money spent by the Government in manufacturing inducing consumption, and the contractual purchase of finished goods, coupled with expanded US Payroll employment is the old magic.

Money spent on services, including the expanded bank rescue creates a slower multiplying  jobs expansion effect.  Unless we’re all into the big expansion of social services for paychecks, we won’t cut it, nor will the private economy.