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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRobert 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
NRaleighLiberal
(59,940 posts)LooseWilly
(4,477 posts)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)its also because we are coming out of the worst recession since the big D.
ProSense
(116,464 posts)...Reich's suggestions above (from the OP link). They're similar to some of the proposals in the President's budget.
In Obamas 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)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)Inequality is growing faster now through the Obama "Recovery" than it did during the Bush years.
bvar22
(39,909 posts)...isn't just for Republicans anymore!
LuckyTheDog
(6,837 posts)killbotfactory
(13,566 posts)midnight
(26,624 posts)riderinthestorm
(23,272 posts)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 thats barely growing at all.
Our political leaders in Washington have for now chosen supply-side austerity economics over Keynesian economics. Thats 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)"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)There simply aren't enough here in the US to go around anymore, and there never will be again.