Government Generosity. GOVEROSITY! Doesn’t this violate Say’s Law? Before I get into classical economic theory that has split government parties for decades, let me discuss my “coining” this new word and the import for the world: GOVEROSITY!
With the passage of the $1.9 trillion American Rescue Plan, the Democrats (except 1 and 0 Republicans) are helping the hardest hit, most impoverished Americans, recover from the health and economic impacts after one year of the Covid-19 pandemic. Recall the Trump Administration gave about $1.9 trillion mostly to the wealthy people and companies in tax cuts. As we prepare our IRS taxes, check out the changes in tax rates contained in the Tax Cuts and Jobs Act of 2017 according to the Tax Policy Center.
After Covid hit the United States, Congress and the Trump Administration provided about $2 trillion to help families, airlines, hotels, and other businesses through the Paycheck Protection Plan as reported by CNBC. In December 2020, the government gave out $900 Billion for Covid relief.
When I was a Guilford College stud (uh, student), one of my favorite classes was MacroEconomics, Econ 221. I loved this class mostly because of the brilliance and enthusiasm of Professor Robert Williams, fresh out of Stanford University. Here is his bio from Fernwood Publishing:
“Robert graduated Valedictorian from Shades Valley High School in Birmingham, Alabama in 1968. He received a B.A. in Economics from Princeton University in 1971 and a Ph.D. in Economics from Stanford University in 1978. His work experience includes research economist for the Brookings Institution (1973-75), Guilford College Economics Department (1978-present), and Voehringer Professor of Economics (1993-present).”
Checkout his book: The Money Changers: A Guided Tour Through Currency Markets
Professor Williams contrasted supply side economics known as Say’s Law where supply creates demand (like Field of Dreams: Built It and They Will Come) versus from Keynes’ law, that demand creates its own supply (e.g. Necessity is the Mother of Invention). To compare these ideas, see this article in Lumen. As a result of the 1970’s stagnant American economy with high unemployment and double-digit inflation, the rise of the Reaganomics “trickle down” experiment began in 1980.
My first job in the oil fields and then in the federal government as an environmental scientist were during the Reagan administration. Many loved the tax and regulatory cuts and anti-union fights. Recall the 11,000+ air traffic controllers (fired, i.e. History) who lost government jobs next time you fly anywhere and especially to Reagan National Airport). There should be a memorial!
Here is a great article about these changing political economic forces by E.J. Dionne, Jr. in the Washington Post where Reagan (and his predecessors) made “big” government the problem and Biden is showing that government can be the solution.
Increasingly, I’ve been impressed by the generosity by current billionaires including Buffett, Gates, Bezos and others who can afford millions and even billions towards important health and environmental causes. Maybe we need GOVEROSITY to become contagious, even in the corporate sector to have some CORPORSITY. This would be a radical departure from the selfish approach some ultra-rich people have taken, especially recently. Advertising could be done with reality TV (not just on YouTube) actually helping others!
So for all the people who are receiving free government handouts who do not really need to increase their wealth, please consider following Say’s Law and share with others in need. We needn’t look very far to help needy causes around the world! On this website I have pointed to a few environmental charities and here would like to encourage us all do more to give back or pay it forward.
To quote Mother Teresa from Goodreads:
“Let no one ever come to you without leaving better and happier. Be the living expression of God's kindness: kindness in your face, kindness in your eyes, kindness in your smile.”
Update March 19, 2021
Thanks for several comments that I received by email. Professor Williams wrote:
“Bill Dam,
It's terrific to see a former student who is actively engaging the world using tools of analysis developed back in the day. I like how you've included not-for-profit & non-profit organizations in the solutions to our big problems. Government structures can't do it all. Nor can the for-profit sector. Good leadership that brings the three together-- for-profit, non-profit, & government (international organizations, federal, state & local)-- in positive synergies to find solutions may be our only hope.
Thanks for remembering my class.
Robert G. Williams, Economics, Guilford College”
It felt wonderful to reconnect with Professor Williams after 43 years and to receive his great feedback!
I also received a comment from my brother Bob:
“So Bill I have read your latest blog. All good until I get to the government "handout. " Yes people like us don't really need it and I get what you are saying about generosity. Promise ours will go into the economy. Do you feel its really a handout or maybe a hand up to the majority of Americans making less than $75 k? So many people work in the service industry for example. Hotels and restaurants shut down by the pandemic haven't worked in a year. Handout or needed help. My masseuse a true entrepreneur had just bought her little building up the street. I was going once a month, haven't gone in over a year she has seen her work fade. She is self employed not eligible for unemployment. What is a couple thousand dollars from the government. Looks cheap to me Trump gave a big handout to the rich. So many people need more stimulus they didn't choose this pandemic shut down. Sorry to go on but I think you know what I'm saying.”
I agree with him that the majority of people receiving benefits from the American Rescue Plan really need the help! This week President Biden said most of the $1.9 trillion law will help 60% of Americans while the benefits of the Trump tax cuts only helped a small percentage of already wealthy Americans.
So the goal of this Conserve-Prosper blog is to promote sustainability principles with an attitude of gratitude and exemplify how we can improve our world through awareness, education, and generosity. Thanks again to everyone making a positive difference in the world including the participants of this blog and other social media that are enriching our collective consciousness!