I have a degree in economics from Michigan State University, and I was glad to see Joe Biden point out the interesting logic behind the Romney-Ryan plan to cut taxes for the wealthy during the vice presidential debate.
The other side's theory is if you lower taxes on the wealthy and corporations, they’ll take that money and hire more people. Have you ever heard of a business owner that made a hiring decision because their tax expenses went down? They hire people when the demand for their product grows.
Where does demand come from? Demand comes from average consumers spending disposable income. When the middle class has more money to spend, then consumer spending increases and demand increases. That’s what creates jobs.
If you want to stimulate the economy, you have to find ways to increase the disposable income of the average consumer. President Obama’s plan to create jobs would do that. The actions he has taken already have reduced the unemployment rate to below 8%, which is a great start. The fact that retail sales are increasing faster than expected is also a sign of progress. Consumer demand is up.
President Obama and Vice President Biden have the right idea about growing and strengthening the economy from the middle class up. That’s why I’m volunteering to help this team get re-elected.
Find out how you can get involved, too.