Government Must Take Lead to Boost Economy

Here's a letter to the editor that I had published in the Lowell Sun about the causes of persistent unemployment. Here's the link.



It is clear what is causing persistent unemployment in the U.S. It is not regulation or taxes, as pundits and politicians on both the left and right argue. Nor is it concern about deficits as others claim. It is lack of demand.

This assessment is supported by a recent poll in which 34 percent of the small-business owners cited weak demand as the biggest problem they face, an amount far greater than those who cited taxes or regulation.

So how can we increase demand and thereby decrease unemployment? The fastest and most obvious way to achieve this goal is through government investment in jobs programs and public works. The size of this investment must be on par with the demand lost over the last few years, unlike the relatively small stimulus program passed in 2009.

Following through with these programs will have the twin benefit of lowering unemployment and repairing the nations degrading infrastructure.

A time of economic recession is not the time to cut deficits, as Democrats and Republicans frequently claim. Focusing on deficits in a time of recession will only make things worse. To see the effects that deficit reduction would have now, one need only look to many European countries that are experiencing rising unemployment and falling GDP, largely due to austerity programs that focus on deficit reduction.

The economic problems we face can be solved if both political parties stop looking out for the wealthy who fund them and instead focus on common-sense policies to help the unemployed.