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marmar

(76,985 posts)
Tue Apr 16, 2013, 07:10 PM Apr 2013

Robert Reich: Why This is the Worst Recovery on Record


Why This is the Worst Recovery on Record
Monday, April 15, 2013


The biggest economic debate is between Keynesians (who want more government spending and lower interest rates in order to fuel demand) and supply-side “austerics” (who want lower taxes on the wealthy and on corporations to boost incentives to hire and invest, and who see government deficits crowding out private investment).

But both approaches have problems.

George W. Bush tried supply-side tax cuts but nothing trickled down. Jobs and wages declined. And austerity economics has been a disaster for Europe.

Unfortunately the U.S. is now adopting supply-side austerics by making the Bush tax cuts permanent for 98 percent of taxpayers, hiking Social Security taxes back up, and implementing the sequester. ....................(more)

The complete piece is at: http://robertreich.org/post/48047982332



13 replies = new reply since forum marked as read
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Robert Reich: Why This is the Worst Recovery on Record (Original Post) marmar Apr 2013 OP
kick and Reich....er, Rec! NRaleighLiberal Apr 2013 #1
Well, when the Democrats decide that they want to "go after the center", then policy will follow LooseWilly Apr 2013 #2
Austerity is part of it but.. DCBob Apr 2013 #3
I like ProSense Apr 2013 #4
This "jobless recovery" is the BEST on RECORD for the 1%, bvar22 Apr 2013 #5
It's funny how that works kenny blankenship Apr 2013 #12
Transferring Wealth from the Working Class to the 1%... bvar22 Apr 2013 #13
What he said (nt) LuckyTheDog Apr 2013 #6
this is why... killbotfactory Apr 2013 #7
supply-side “austerics” =jobless recovery..... midnight Apr 2013 #8
Anyone else read it as "supply side hysterics" vs "supply side austerics"? riderinthestorm Apr 2013 #9
No economic theories make any sense at all in an era of corruption just1voice Apr 2013 #10
Most importantly, the jobs keep going to India and China. reformist2 Apr 2013 #11

LooseWilly

(4,477 posts)
2. Well, when the Democrats decide that they want to "go after the center", then policy will follow
Tue Apr 16, 2013, 07:42 PM
Apr 2013

The third way and all the lot of the rest of them have completely digested the notions of right-wing think tanks, and by then adopting and enacting policy based upon these presuppositions allows them to "appeal" to the "centrist"/"independent" voters that neo-DLC think tanks keep insisting are out there. (Presumably, they're really just trying to poach some less-right-wing voters away from the Republicans).

Sure it's cynical, especially when it seems to have been greater appeal to the left-ish side of the Democratic Party that allowed Obama to win out over Clinton in the primaries in '08.

On the other hand... some seem to be convincing themselves that when (other) Clinton pursued similar policies in the late '90s the economy boomed... so let's do it again. (No one seems to remember all the military base closures at the time and the huge wave of money that freed up for investment, as the Feds no longer needed to float so many tax-free bonds, leaving investors to turn elsewhere with their investment dollars... and the dot.com bubble to inflate.)

Of course, if the government again reduced the amount of tax-free bonds they needed to float, presumably that would force investors to turn elsewhere with their dollars, again. The difference, of course, is that austerity measures that eliminate jobs, rather than measures that eliminate the rate of weapon stockpiling, will also reduce the amount of money in the economy to buy stuff... and stuff the coffers of those investors- leaving them with less money that they're hot to invest... not to mention an economy that just doesn't have much going on.

The irony, of course, is the cacophony of voices we heard right here shouting about how awful it would've been if homeowners would've been bailed out... how it would have devalued their own "responsible behavior"... and as long as there are so many voices worried about their fellow citizens getting a break... well, there's no one else to make policy for the benefit of than what's left- a$$hole investors.

Brilliant!

DCBob

(24,689 posts)
3. Austerity is part of it but..
Tue Apr 16, 2013, 07:45 PM
Apr 2013

its also because we are coming out of the worst recession since the big D.

ProSense

(116,464 posts)
4. I like
Tue Apr 16, 2013, 07:49 PM
Apr 2013
We could award tax cuts to companies that link the pay of their hourly workers to profits and productivity, and that keep the total pay of their top 5 executives within 20 times the pay of their median worker. And impose higher taxes on companies that don’t...raise the minimum wage to half the average wage...increase public investment in education, including early-childhood...eliminate college loans and allow all students to repay the cost of their higher education with a 10 percent surcharge on the first 10 years of income from full-time employment...expand the Earned Income Tax Credit...pay for all this by adding additional tax brackets at the top and increasing the top marginal tax rate to what it was before 1981 – at least 70 percent.

...Reich's suggestions above (from the OP link). They're similar to some of the proposals in the President's budget.

In Obama’s Budget, Poverty Initiatives Face an Uphill Battle
http://www.democraticunderground.com/10022674502

President's budget: Maintains Strong Support for Worker Protection.
http://www.democraticunderground.com/10022673679

President's budget: Excellent proposals that Congress should support.
http://www.democraticunderground.com/10022670043

bvar22

(39,909 posts)
5. This "jobless recovery" is the BEST on RECORD for the 1%,
Tue Apr 16, 2013, 08:19 PM
Apr 2013

exactly like it was designed.

They learned a lot from engineering the last Jobless Recovery.
They have perfected the art.

kenny blankenship

(15,689 posts)
12. It's funny how that works
Tue Apr 16, 2013, 09:57 PM
Apr 2013

Inequality is growing faster now through the Obama "Recovery" than it did during the Bush years.

 

riderinthestorm

(23,272 posts)
9. Anyone else read it as "supply side hysterics" vs "supply side austerics"?
Tue Apr 16, 2013, 09:36 PM
Apr 2013


Edited to add a bit more from the article:

"But none of this will happen until the public understands why widening inequality is so damaging. Even the rich would do better with a smaller share of a rapidly-growing economy than a large share of one that’s barely growing at all.

Our political leaders in Washington have for now chosen supply-side austerity economics over Keynesian economics. That’s bad enough. Their inability or unwillingness to do much of anything about widening inequality will prove a larger problem."

http://robertreich.org/post/48047982332

 

just1voice

(1,362 posts)
10. No economic theories make any sense at all in an era of corruption
Tue Apr 16, 2013, 09:41 PM
Apr 2013

"Suppy-side" is a load of crap, always has been and the rest of the economic theories like Keynesian theory don't work when there's pure corruption and no regulation.

I like most of Reich's writing and think he's correct in saying "austerics", although I'd describe today's economic plans devised by corrupt people as "corruption".

reformist2

(9,841 posts)
11. Most importantly, the jobs keep going to India and China.
Tue Apr 16, 2013, 09:42 PM
Apr 2013

There simply aren't enough here in the US to go around anymore, and there never will be again.
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