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A short video explains in clear terms just what's wrong with today's economy and how to fix it.Republican Senate candidate and World Wrestling Entertainment CEO Linda McMahon (CT) demonstrates she doesn't have the vaguest clue about how the economy works or, of course, how to even begin fixing it.
Basic problem that the video focuses on is the problem of insufficient consumer demand, which means that capitalists have no reason to invest in new production as there's no indication that any new products will ever get purchased. McMahon wants to give businesspeople veto power over whether to increase the minimum wage or not ("I think we ought to look at all of those issues in terms of what mandates are being placed on businesses and can they afford them. I think we should get input from our business community"). As businesspeople have wanted to lower or eliminate the minimum wage ever since it was instituted, it's clear beyond the slightest shadow of a doubt what the "input from our business community" would be.
Problem is, lowering the minimum wage would be precisely the wrong thing to do at this time! That would have the effect of reducing consumer demand at exactly the time when the economy desperately needs maximum consumer demand to spur more production.
A few months back, a commenter on my local newspaper's message boards said that only businesspeople have the competence to comment on political issues. McMahon is a businessperson, but very clearly, she has absolutely no idea about how economics works. Now, I don't believe businesspeople should be denied a seat at the table where political decisions are made, but no, I very strongly disagree that businesspeople have any special competence at political or economic issues.
Update: McMahon's opponent, Connecticut Attorney General Richard Blumenthal (D) is of course jumping all over McMahon's faux pas, drawing a connection between her history as a businessperson and how she'd run Connecticut: "Linda McMahon laid off ten percent of her workers and takes home $46 million a year so it's no surprise she's thinking about lowering the minimum wage."
