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Want real stimulus? Try a jobs program

The Baltimore Sun

We've fallen into a rut in the way we try to stimulate the economy. There's no certainty that those government checks will do much stimulating. Potential consumers might not spend, and businesses might not invest. There's no inevitability in the process. American capitalism has produced great wealth, but it has yet to tame the business cycle.

A more certain source of spending and job creation is needed. If we cast aside anti-government shibboleths and focus, we can find ways to overcome what seem to be intractable laws of economics. Step One is to ignore all the prejudice that has been built up against direct government action to steer the economy.

Look at the problem this way: At any given time, we've got people who want to work and we've got conditions that require work. Hurricanes, tornadoes, wildfires and floods cause damage that is left unattended. As we were reminded last August in Minneapolis, infrastructure across the country is in need of major repairs. Bridges and highways need work, and so do the vehicles that damage them.

We are in the bad habit of depending almost entirely on the marketplace for cleanup and restoration. There's always plenty of work to be done, but government has to take charge, organize, pay for it, and then collect taxes from restored sources of productivity. A nation at risk of recession requires a system of targeted vouchers to keep people working and spending and making sure that needed maintenance gets done.

It's time to shed our anti-government reflexes and let the government distribute vouchers for specified uses. The service provider would accept the vouchers and return them to the government for cash. In the meantime, jobs would be created and socially beneficial tasks would get done.

Here is one simple example. Every year, more than 40,000 American lives are lost through accidents on the road. A contributing factor in many accidents is faulty brakes. There are always brake systems in need of repair. That's work that needs doing, and we've got people who need work. How do we bring them together?

Many car owners put off getting brake work done because they are reluctant to shell out money while they can still bring their cars to a stop. If government were to provide them with vouchers, they'd get their brakes fixed. Repair shops would have more business than they could handle. New repair shops would open. New jobs would be created. Mechanics and support personnel would be trained. The demand for parts would increase, and suppliers would do more hiring. All in all, there'd be a big economic ripple effect. And fewer collisions.

Whenever there's a socially beneficial service that is needed but put off because of cost, government should move to get people hired to perform that service. Increase the demand for the service, and you increase the demand for workers.

Let local and state governments hire people to fix failing infrastructure. All public works departments have projects that have been deferred. Put people to work doing the fixing, and there will be beneficial ripple effects.

The cash the government pays out would go for wages and supplies. Wage earners would pay income and sales taxes. There would still be a gap between what government pays out and what it takes in. But truly progressive taxation without loopholes could go a long way toward closing the gap.

The important thing is that far fewer people will be without jobs. The social costs of unemployment will diminish greatly. Everyone knows there's a direct connection between unemployment and crime, unemployment and destructive addictions, unemployment and poor health.

There's work to be done and there are people willing to do it. Let's get things going.

Paul Marx, a Towson resident, is the author of the recently published "Jim Rouse: Capitalist/Idealist." His e-mail is pppmarx@comcast.net.

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