Maybe our robust 1.5% GDP growth will get us out of this mess.
our anemic growth, and the need to redistribute wealth in order to stimulate demand is a good reason to support some form of wealth transfer, even if these individual programs may do pretty poor jobs of it.
i think the trend towards underemployment and negative real wage growth of less educated/less skilled labor is a systemic problem that is only going to get worse in coming years. figuring out a way to ameliorate that issue is going to be a huge problem (i don't actually think we are likely to solve it).
Handing out unearned money will never be the answer to GDP growth. People must work in a productive job and a friendly business environment is the only way it will ever happen.
a productive business environment doesn't solve the problem of an oversupply of labor. we're entering the technological equivalent of a slave economy, where free labor cannot earn a living wage, because their labor isn't actually worth a living wage. the only way to keep the economy moving is to find a way to pay/give them more than they're worth.
i mean, it's possible i'm wrong, and i dunno, boutique handmade pickles are going to provide a way for millions of people to earn a living. that'd be great, but i don't think it's going to happen.
expanding the earned income tax credit was the best thing reagan ever did. updating it would go a long way to solving the problem - for now.
First, your Keynesian theory is just that- a theory, and one that hasn't really panned out.
Second, please don't pretend the unsustainable expansion of our welfare state has anything to do with Keynesian economics or "stimulating" the economy. It is about buying votes, plain and simple. This is the Democratic power model that harkens all the way back to the first days of the party machine.
Third, you are completing ignoring the severe harm our massive welfare state has wrought. It is a cancer on the soul of America - our individualism, self sufficiency, and work ethos. Millions of able bodied Americans choose to live a marginal existence for "free" rather than work. More and more people drop out of the workforce and we celebrate that the unemployment rate is "dropping."