Fiscal stimulus.

Editor,

Without fiscal stimulus, which is the Democratic plan and which House Republicans will never allow, hiring will never expand in the USA because consumer demand will remain depressed.

Cutting taxes on wealthy individuals in hopes they will invest their windfall in the real economy will not increase consumer spending appreciably because wealthy individuals hoard capital, speculate with it in secondary markets, and shelter it in offshore accounts.

Relying on monetary stimulus alone -- the Fed buying long- and short-term government debt -- merely drives down interest rates, thus propping up a divorced-from-fundamentals stock market by encouraging speculators to trade riskier assets, but it does nothing to stimulate investment in the real economy.

Every good businessman knows: "It costs money to make money."

But American billionaires, unlike their post WWII predecessors, only dare to engage in rigged financial enterprises. They are afraid to risk their capital investing in the United States of America and have chosen to take their chips off the American economic table and refuse to lay any down in the form of much needed tax revenue that would put Americans to work and money in consumers' pockets.

Republican politicians, who work for these guys, are perfectly happy to sell out the American people, whom they are hired to represent, as long as the big boys pay them off.

Re: "Hiring Slows, Adding to Pressure on Fed and Obama" (9/8/2012)