Politics and Economics

   Politics, government and economics are inextricably linked. To pretend otherwise, or to preach the laissez-faire gospel of no government involvement in the economy is not only unrealistic, but also foolish.
   Even if the only government contribution to a nation's economy were military defense spending, that would still be a major portion of total spending.
   When consumer spending drops, suppliers reduce production. When suppliers reduce production, they also reduce their workforce. When people are out of work, they reduce their spending, which leads to further cuts in production. And so the cycle continues, and the economy recedes.
   A proven way to reverse the downward spiral is for government to step in and make work available so people have money to spend on necessities such as food, clothing and shelter, as well as other goods and services. In turn, this generates jobs and income for other people who supply goods and services. And so the cycle continues, and the economy grows.
   Money is the lifeblood of a modern economy. Any hemorrhaging of the money flow, through unemployment or a collapse of the financial system -- think bank failure or investment firm bankruptcy -- drains the lifeblood from the economic body.
   How, then, to heal the sick patient? One set of economic physicians say it's best to leave the patient alone. Do nothing, they prescribe, and in the long run the economic body will heal itself.
   But here's the risk question: How long is the long run, and what if the patient dies while waiting?
   An alternate treatment would be a transfusion. And this is where Dr. Government intervenes. If the private sector is unable or unwilling to increase employment, which would provide consumers with more money to justify increased production, government can and should, thereby regenerating a cash flow -- the lifeblood of a modern economic system.