Invest in People, Not Just Stocks
Mindless stock purchases will not help contain mortgage losses or margin calls. It will not keep people employed or create new jobs. It will not gently reduce consumer debt, nor keep Wall Street from deeply negatively consequential actions.
On the other hand, restructuring loans or taking an equity participation in people’s homes might help the real economy. So would investing in job creation instead of bank stock via capital injection. We have become a borrowing society because of mass inequality, spurred by enormous debt and an overly risky banking industry.
The New Deal meshed government rescue with economic restructuring and accountability. That’s precisely what we so deeply need today.
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Investing in stocks is investing in people. When we invest in a company, we invest in producing something people want. We provide capital so that entrepreneurs can purchase hire people and buy tools and materials. Investing in private concerns, not paying taxes so government can invest in people, provides people things such as food, clothing and shelter. Government does not provide those things.
We have more government than we need. We have a recession BECAUSE we have invested too much in government. We need to reduce taxes and encourage government employees to get jobs in private industry.