This paper proposes a jobs program to address both the chronic problems of unemployment and underemployment in the U.S. economy and the debilitating economic and political impacts of growing inequality in the U.S. The jobs program consists of three parts. First, the reduction of unemployment and underemployment by stimulating output, either under public or private auspices, of infrastructure, or social investment, in areas such as: transportation, education, health care, human services, and parks. Second, to recognize and respond to the failure of the private market to provide needed current public services, which will include a massive upgrading of pay and working conditions of these “human service” jobs by expanding public employment, sharing the costs of an enhanced and expanded social safety net. Third, to, explicitly and as a matter of industrial policy, target government investment and overall job growth towards the industries of the future, particularly in the areas of energy, agriculture, and other broadly defined “green” technologies.
We know where the money is. How do we get it? There are, of course, several ways of tapping this pool of dollars for broader social purposes, including raising income taxes on high incomes, reinstating and strengthening the estate tax, or levying a special surcharge on financial sector profits. However, the approach I favor focuses on taxing the primary activity that drives much of the individual incomes and corporate profit levels in finance. A financial transaction tax (FTT)—a tax on the trading of financial assets—has multiple appeals. First, it could generate significant revenue. Second, and equally important, it is a progressive tax that would affect primarily wealthy individuals and large corporate institutions, with benefits potentially flowing to many. Further, while an FTT is not a substitute for effective regulation of finance, it would act to dampen some financial activity, helping to reshape a political economy in which finance has become overly dominant. Finally, the political logic of an FTT—the dynamic of Wall Street vs. Main Street—should give it wide appeal.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.