WASHINGTON - April 6 - The financial crisis isn't a result of stagnant wages in relation to productivity in the US, according to Tom Ferguson, political science professor at University of Massachusets and 

author of Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political System. 

It was always apparent that productivity growth was not largely benefitting the working class, but mainly making the rich more wealthy. Ferguson believes the economic model must be re-shaped to allow full employment. "The question boils down to what can you do about wages?" Ferguson asked. "The first thing you've got to do is run a fiscal and monetary policy that will allow you to get to full employment, I also think you've got to deal with exchange rate misalignment, then I would certainly think about wage subsidies and above you've got to redo the federal budget."

State funding should also be directed to provide adequate social services like education and health facilities according to Ferguson. "If you re-did the tax system you would...make the lives of an awful lot of Americans much easier," he said. Watch the full story: http://therealnews.com/t/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=3526