You don't create demand by creating jobs. You create jobs by creating demand.
I explained this in part in a previous monograph. You may want to review that now, or you may choose to review it later.
This is election season. You cannot expect much in the way of substance. If Jonathan Swift were alive today, he would still be writing about small people who bicker over whether to crack open a soft cooked egg at the big end or the small end.
For the purposes of this discussion, we live in Chicago. We live across the street from one another.
You pull out of your driveway on your bicycle to announce you are pedaling to New York. You make a right.
I call out after you. "If you want to go to New York, you have to turn left."
You reply, "Your way isn't the only way of doing it, you know?"
A few months later, you return. You concede that I was right.
I tell you that I am planning to bicycle to New York. You say, "Don't forget to turn left."
I reply, "If I want to go to New York, I have to turn right."
You become indignant. "How come when I want to go to New York, I have to pull out of my driveway and turn left; but, when you do it, it's okay for you to turn right?"
That may have brought a smile to your face. Unfortunately, I've had a similar discussion before.
Every Economist you hear discussing the economy works for somebody. That should be simple enough to explain why we have not yet solved our economic crisis. If not, let me say quite simply just this:
If I sell blue paint, I will tell you that if you want to create jobs, you have to paint the walls of your business blue.
There are two Dixie Cups in the freezer. I take one out, look at it, see it is chocolate, and smile. I like chocolate ice cream. You walk into the kitchen, see the Dixie Cup and want to know if there is any more. I tell you there is one left. You open the freezer, take out the Dixie Cup and look at it. You don't smile. The Dixie Cup is strawberry ice cream. You like chocolate: you are allergic to strawberry. Because I am not a politician, I offer to switch. We both know I am not all too fond of strawberry. If we switch, we both get to eat ice cream. If we don't, only I get to eat ice cream.
I suggest the voters watch closely at how Congress and the White House hand out the Dixie Cups. Oh, yeah, and don't listen to the economists. They do more than give advice on economics. They also sell paint.
Copyright (c) 2011 Slim Fairview