Quantitative Easing, as it has been administered, produces little tangible results. Very little of it reaches people that can help the economy grow. Injecting billions of dollars into the economy through commercial banks is like watering the leaves of a plant. Some water may make its way down to the roots, but it is surely not efficient.
What is needed is a way to stimulate the economy by way of creating more demand for goods and services. The way to achieve this may be through a jobs works program not unlike Roosevelt's WPA or the CCC in the 1930s. If the billion of dollars handed to the bankers was instead passed along to ordinary people, and specifically young unemployed people in the form of a job of last resort, this demand would be created.
How do we pay for it? How did we pay for Quantitative Easing? We increased the national debt. The only difference is with a works program, we'll have something real to show for our efforts.
10/16/2014
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