Letters

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.

Advertisement

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.

Get Arguable with Jeff Jacoby in your inbox:
Our conservative columnist offers a weekly take on everything from politics to pet peeves.
Thank you for signing up! Sign up for more newsletters here

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...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

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 BostonGlobe.com
Marketing image of BostonGlobe.com