Tinkering With Taxes Won’t Bolster Economy
James Flanigan’s column, “Washington Fiddles, Productivity Burns” (Oct. 19), hit it on the nose. The pie (economic growth) is simply not big enough. How can we increase the size of the pie? As Flanigan pointed out, not just by tinkering with taxes.
To increase productivity, an economy needs three things: increased investment in plant equipment, increased investment in the infrastructure and an educated work force that can cope in the modern workplace.
To stimulate increased investment in plants, the government must use the carrot-and-stick approach. This means at some level taxing consumption while rewarding savings.
The infrastructure is the responsibility of the government. More money must be spent on bringing our roads, bridges, and water and sewage treatment facilities into the 21st Century.
The most difficult problem, however, is improving our education system.
When a large segment of the adult population is functionally illiterate and lacking basic math skills, how are they going to be able to operate the increasingly complex machinery that is necessary to increase our productivity.
More money is not the answer.
The importance of education must be sold to the average person. Public policy should encourage a change in our heroes, from athletes and rock stars to individuals who excel intellectually.
GERALD J. BARRON, La Canada