|Today, we got a report which confirms everything we've been telling you about how the economy is dipping into recession. ADP reported job creation for April was only 119,000. This compares to the approximate 150,000 jobs that needs to be created just to keep up with population increase. Clearly, this should be a wakeup call for everyone who has been claiming that the economy is doing just fine.
Why are we seeing the economy falling into recession? While some will point to various factors, the underlying problem is that we have shunned innovation as a solution to our economic problem. Prospering through innovation economics gives us an answer:
Perhaps the greatest 20th century economist was Joseph Schumpeter. Unlike Keynes, Schumpeter put innovation first and in doing so articulated the idea that capitalist economies advance on the basis of “creative destruction.” Yet, while Schumpeter may have been European (Austrian), too few European policymakers are Schumpeterians.
The same prescription will work in the USA, just after we vote out of office all the Austerians.
Wednesday, May 01, 2013
Politicians Embracing Austerity Are Killing Jobs
Posted by Unknown at 18:17