Thursday Morning Links

This and that for your Thursday reading.

- Robert Reich reminds us that sustainable economic growth is the product of bottom-up development, not a top-down trickle of wealth:

What’s the real formula for growth? Better access to education, healthcare, and transportation, all of which make workers more productive.

These more productive workers command higher wages. With higher wages, they purchase more goods and services. These purchases motivate companies to expand and invest, and create more and better jobs.

American experienced this virtuous cycle for thirty years after World War II. We invested unprecedented sums in education, healthcare, and infrastructure. We financed these investments through higher taxes on the rich and on big corporations.

The economy boomed and wages shot upward. The wages of the bottom fifth rose even faster than the wages of the top fifth. This unleashed consumer spending, which generated more growth.

The Clinton administration tried this formula on a much smaller scale in the 1990s, raising taxes on the top and investing in education and infrastructure. The economy boomed, 23 million new jobs were created, and for the first time since the late 1970s the typical American’s wage rose.
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For years, Republicans have been selling tax cuts by lying that they spur growth, which trickles down to average Americans.

For just as long, Democrats have been selling fairness, but without explaining why a fairer economy is also more productive and prosperous.

It’s time for Democrats to make the case. It has the virtue of being true.

- Meanwhile, Simon Wren-Lewis comments on the importance of investing in our social and economic future, then reminds us why we shouldn't obsess over modest government deficits when human well-being is at stake.

- Norman Farrell reviews how the B.C. Libs and their corporate donors looted what had been a well-run and efficient BC Hydro.

- Finally, Juliette Garside discusses the EU's moves toward naming and blacklisting tax havens.