Redistribution vs. Growth

Redistribution vs. Growth

Here is President Obama today, speaking before meeting with his Cabinet.

We want to maximize the pace of our recovery, but most importantly, we want to make sure that every American is able to benefit from that recovery, that we’re not leaving anybody behind and everybody is getting a fair shot.

With “but most importantly,” President Obama is prioritizing distribution over growth. He is saying that helping some Americans is more important than economic growth for all Americans.

Kudos to the President for actually making a choice–most politicians would falsely assert that there is no tradeoff between faster economic growth and greater equity. There often is.

Too bad he’s chosen the prioritization that’s opposite of my own: growth, growth, growth, in the short run and the long run.

Here is what I wish the President had said instead.

We want to maximize the pace of recovery. The surest way to help the greatest number of Americans is for government to create conditions that allow for rapid economic growth and job creation. And the best way to make sure every American has the chance to benefit is to create an expanding economy with opportunities for all.

(photo: Official White House Photo by Pete Souza)

5 responses

  1. The fact is there are too many voters that would rather get growing government benefits than get a job in a growing economy. We need to develop and present augments and programs convincing them there is a better way for them and their children in the long term.

  2. redistribution of wealth does not work in theory , Russia has no middle class that is where we are heading for and the government redistributes what???

  3. The surest way to help the greatest number of Americans is for government to step aside and allow free markets to determine the course of our economy. A tax cut would help, too.

  4. The Inflation Calculator: Bureau of Labor Statistics shows that $11.00 in 1980 = $31.11 in 2013s buying power. I show this because in 1981 I was paid $11.00 per hour as a temporary summer help laborer. I have watched as the American people have been programed to accept stagnate wages while prices keep rising. Meanwhile those whom had the finances to finish college and the connections to land that awesome job sit in judgement of the those trying to survive working for unfair wages. The profits go to the top so that THOSE can say that classic line ” I earned this money and I should not have to share.” People earning salaries of $150K can live a wonderful life full of nice vacations and beautiful homes and cars. Why do so many people think they are worth $200K, $500K, $10 million per year, but a person that gets up everyday for work is not worth a decent living wage? They prey on the people that were not as blessed as themselves. They focus on welfare of the poor and turn a blind eye to the Corp welfare subsidies that help pay their bonuses. The poor whom do work everyday, but still cannot make enough to get off food stamps, amount to a very little dollar amount when compared to what is given to large corporations. Trickle down economics has not worked!
    We have had a redistribution of wealth for several years! The wealth has been systematically redistributed upward to people that already live a good life and taken from hard working people hoping for scraps from the table.
    My thoughts are that if the wealthy would pay people a livable wage, these workers could buy more products and stimulate the economy. If they were paid higher wages that qualified for a tax bracket that actually pays taxes then we as a country would gain more revenue. Prices do not have to go up. You people that earn over $200K per year need to stop being so damn greedy.

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