you do realize we may never reach “full employment.”
over the last couple of decades, we appeared to be in “full employment” mostly due to bubble driven economies. the tech bubble gave a bunch of folks jobs that otherwise would not be there. the housing bubble of course allowed for a lot of extra Realtors, construction workers, loan processors as well as a bunch of folks in retail and interior design that frankly would not have jobs if not for the bubble environment.
this recession will last for a long time, and when it is over, we WILL not get back to that “full employment” status. Unless of course we create another bubble.
So while we think up of a new bubble so we can get back to that magical “full employment,” what should we do? pile on the debt?
The truth about the over 250k class is this: If their income over 250k is tax’d heavily, it would be their incentive to spend that > 250k income as much as possible in the form of business related deductions. If their over 250k income is not taxed as heavily, they just end up saving it or investing in financial holdings.
