MarketWatch.com, part of the Wall Street Journal Digital Network, owned by Rupert Murdoch, published a short but interesting piece on what it would take to get America working again.
Four components of back-to-work:
— Infrastructure Projects
— Support for State and Local Government Projects
— Tax Incentives to Hire
— Putting Youth to Work
The story acknowledges that business is sitting on a ton of cash but that it will take government action to spur the economy to grow.
Can it be that government does have a role in economics? Certainly the government’s role in all four of the above areas would be more than just ‘spurring’. The above amounts to ‘Stimulus II’ … which will be painful politically because there is a strong chance of decreasing tax revenues while increasing expenditures thus ‘deficit’.
It seems somewhat paradoxical that Rupert Murdoch’s MarketWatch can call for government shoring up of the economy while Murdoch’s Fox Network attacks the government for … being involved in the economy and deficit spending.
Maybe I’m missing something here.
My thought is that MarketWatch is probably correct in its analysis.