The Ticking Time Bomb of American Job Destruction

18 Pages Posted: 18 Mar 2009

Abstract

Our interest in writing this article is to create a bridge between the scholarly and academic research on technological innovation and a private sector, for-profit business model that implements the ideas on innovation and entrepreneurship, primarily in metro regional economies.

It is not necessary to go all the way back in history to the New Deal programs for historical comparison to Reagan's policy of economic growth in order to gain insight into Obama's economic policies. A more recent and better comparison is the performance of the Appalachian Regional Commission, (ARC), created by President Johnson and enacted by Congress in 1965.

As this article will demonstrate, European-style socialism does not create jobs because it has no small business innovation investment component to it. Consequently, the Obama economic policy will not solve the American job destruction process. The performance of the ARC will be used to describe what happens when government intervenes, over a 45-year period, as an example of the economic outcome of European-style socialism.

The performance of the ARC will be contrasted with the alternative private market small business innovation job creation policy. The basic flaw and contradiction in global MNC political movement is that all free market economic growth depends on continuous high rates of product innovation investment to avoid economic stagnation. While the implementation of the Keynesian multiplier policy by the Obama administration may not create jobs, Keynes was absolutely accurate when he wrote that markets have a tendency to stagnate.

Unfortunately, Keynes' socialist followers in America have chosen government spending as the stimulant to avoid stagnation, not small business innovation investment. One world government, with one seamless global market, supported by huge government spending, does not address the small business innovation investment problem of economic growth or deal with the alternative outcome of market stagnation.

Keywords: unemployment, global value chains, Appalachia

JEL Classification: L16, M13, O16, O31, O32, O33, O34, O38

Suggested Citation

Vass, Laurie Thomas, The Ticking Time Bomb of American Job Destruction. Available at SSRN: https://ssrn.com/abstract=1361896 or http://dx.doi.org/10.2139/ssrn.1361896

Laurie Thomas Vass (Contact Author)

Gabby Press ( email )

620 Kingfisher Ln
Sunset Beach, NC 28468
United States
9199754856 (Phone)

HOME PAGE: http://www.gabbypress.com

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