This could become an interesting bandwagon to ride...
The Theory of Middle-Out Economics - Public Works http://www.publicworks.org/the-theory-of-middle-out-economics/ (via Instapaper) Which comes first—economic growth or economic inclusion? The prominent trickle-down theory of economics says growth, fueled by the investments of the rich, creates inclusion (i.e., more jobs, better pay, and a bigger middle class). But Nick Hanauer, a Seattle entrepreneur, and David Rolf, a venture capitalist, say that’s all wrong. In their article for Democracy Journal, they argue for the “middle-out” explanation of growth: In the technological economy of the twenty-first century, growth and prosperity are the consequences of a virtuous cycle between innovation and demand. Innovation is how we solve problems and raise living standards, while consumer demand is how markets distribute and incentivize innovation. It is social, civic, and economic inclusion—the full, robust participation of as many people as possible—that drives both innovation and demand. And inclusion requires policies that secure a thriving middle class. The trickle-down theory—the one that lionizes the rich as “job creators”—insists that the American middle class is a consequence of growth, and that only if and when we have growth can we afford to include more people in our economy. But trickle-down has it exactly backwards: Properly understood, the middle class is the source of all growth and prosperity in a modern technological economy, and economic security is the essential feature of what it means to be included in the middle class. Economic security is what frees us from the fear that one job loss, one illness—one economic downturn amidst a business cycle guaranteed to produce economic downturns—could cost us our home, our car, our family, and our social status. It’s what grants us permission to invest in ourselves and in our children, and to purchase the non-subsistence goods and experiences that make our lives healthier, happier, and more fulfilling. It gives us the confidence to live our lives with the realistic expectation of a more prosperous and stable economic future, and to take the entrepreneurial risks that are the lifeblood of a vibrant market economy. A secure middle class is the cause of growth, not its effect; in fact, our economy cannot reach its full potential without it. And a middle class that lives in constant fear of falling out of the middle class isn’t truly middle class at all. Hanauer and Rolf call for a new social contract for today’s society. It would include the proration of employment benefits for part-time workers, the portability of those benefits from one job to the next, and a universal set of benefit and labor standards. They also advocate for paid leave, a livable minimum wage, overtime pay, pay equity, and fair scheduling. Sent from my iPhone -- -- Centroids: The Center of the Radical Centrist Community <RadicalCentrism@googlegroups.com> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org --- You received this message because you are subscribed to the Google Groups "Centroids: The Center of the Radical Centrist Community" group. To unsubscribe from this group and stop receiving emails from it, send an email to radicalcentrism+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
