In response to our economic troubles there have been two commercials providing a conflicting message that ultimately is bad for the middle class. One commerical, paid for by realtors, delivers and optimistic message that better times are ahead in terms of home sale prices. The other, from a business interest group, provides a cautionary message that you cannot be pro-jobs and anti-business.
When you consider the trend since the seventies of housing costs escalating in proportion to median family income, these two commercials are at odds with each other. The realty group wants home sale prices to go up because of the self-interest of bigger profits. The alleged public interest that emboldens them to make commercials is that we all want home sale prices to go up as an investment and/or expanded credit line. However, if our incomes do not go up even faster than home sale prices at this point we are heading towards serfdom (or, at the least, renting).
This seems to reinforce the message that we want more jobs, hence, we want to play nice with businesses. However, there is a caveat as to what kind of businesses we should play nice with. One reason why housing costs have escalated in proportion to median family income is that minimum wage and median income both have been relatively stagnant. One cause for this stagnation, as presented in a series of graphs on The Middle Class Forum during the winter and spring, is an economy that has been structured more for the financial and service sectors since the seventies, rather than bothering ourselves with the production of tangible goods. The financial sector has helped the rich get richer, while the service sector stagnates our wages.
Purely being pro-business with no questions asked at this point is to perpetuate the system that has been entrenched since the seventies. Yeah, we will get more jobs out of it, but precisely because businesses in the service sector will pay relatively less to get relatively more work.
Being pro-entrepreneur is a different matter entirely. Along this vein, if we were to structure a system where bankruptcy laws were made less tough for the little guy and bail outs less likely for the big boys, we would encourage the liberty of more start-ups. Also, as stated on here frequently, a maximum compensation ratio would help to restore some wage balance with less impact on how markets function than a minimum wage law. If the interest group trumpeting pro-business accepts these types of solutions, fine. Otherwise, it is best not to pay attention to interest groups paying big bucks for commercials that are allegedly in the public interest.
