In today's New York Times, Edmund Phelps wrote an op-ed piece that proposes a tax credit for companies employing low-wage workers. As the piece indicates, it might seem counterintuitive to emphasize low-wage jobs but Phelps correctly states "we need to create jobs at all levels." Apparently, the Singaporean government implemented such a tax credit and their unemployment rate is around 3%. It is a huge leap to assume that the tax credit is solely responsible for low unemployment rate. But I would assert that admitting they faced a major problem was the first step toward this type of bold, effective government action.
The economic crisis in the US is having major impacts on people and state, county and city governments. Hawaii has closed schools on Friday and Colorado Springs is turning off street lights. The town of Tracy, CA had considered charging its residents for 911 calls. They have changed their minds and now proposing a half cent increase on sales tax.
But we don't want to pay taxes. We want services without taxes and the good life without hard work. This ongoing economic crisis has different effects depending on what state you live in whether that's Hawaii, California, Colorado -- or denial.