You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

letters | watching the economy

The way of the businessman is not a clear path to lead the country

One of the great myths of our modern political culture is that a businessman, by virtue of his success, is uniquely positioned to heal an ailing economy. Business and government serve very different functions.

For example, if a businessman who has increased profits and shareholder value by laying off employees then applies this lesson to the nation’s economy, it would deepen the recession.

Continue reading below

As we learned in the Great Depression and World War II, and as we seem to have forgotten, in an economic downturn, when aggregate demand has fallen because families and businesses are cutting consumption and investment, the only way to restore economic growth is through government expenditure and, yes, greater debt in the short run.

Tax cuts for the wealthy are no cure.

So-called job creators could enjoy a marginal tax rate of zero percent, and they won’t create new jobs if consumers can’t buy their products.

Derek Stolp

West Chatham

Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of