Re:Bill Gates is wrong about education
by headmelted on Saturday November 28, 2020 @03:59AM
(#25236374)
That’s only true if the holder of that money decides to spend it on creating jobs, which are almost invariably the largest single expense in any business.
Trickle-down economics depends on progressively better paid work and more of it, while the incentives for businesses are to have as few people on payroll for as little compensation as possible.
That’s why you need to force reinvestment with corporate taxation, and subsidizing innovation with de-risking, either via direct state investment or via reduction of labor cost (UBI, unemployment benefits to compensate for looser contracts.)
I think this is the gist of Mazzucato’s views
That money is labor taken out of economic activity and left rotting away in a vault.
Surplus needs to reinvested in the cycle, otherwise the overall economy will shrink.
What’s being quarreled about in the last generational policy struggle, is who gets to dictate how to spend it. The Jeff Bezos-es, the neoliberal technocrats, or the political establishment. Or something else