The Failure of Fiscal-Monetary Policy, 2008-2013

[eridani]

http://www.nationofchange.org/failure-fiscal-monetary-policy-2008-2013-1366640420

The failure of Obama fiscal stimulus programs to create jobs has contributed significantly to the weakest job recovery from recession of the 11 prior recessions since 1945. In addition to hoarded business tax cuts, hundreds of billions of dollars distributed in subsidies to the States since 2009 were promised first ‘to create jobs’ and then at least ‘to save jobs’. Neither happened. State and Local governments instead laid off 700,000, engaging in massive job destruction instead of job creation which continues to date. $100 billion in stimulus spending targeted for infrastructure investment—promised for ‘shovel ready’ projects—were instead redirected to long term, capital intensive projects and little job creation. In 2013 more than 21 million still officially remain jobless; in actual fact, more than 25 million.

While the administration touts the creation of 5 million new jobs, it remains silent on the 5 million who have left the labor force unable to find any form of work. Full time permanent jobs have disappeared while more than 6 million involuntary part time jobs were created and millions more temp jobs. Of the jobs lost since 2009, 60 percent were top tier jobs paying more than $18 an hour. while 58 percent of the jobs created since 2009 were the lowest paying jobs at less than $12 an hour. Not surprising, as a consequence of continuing massive unemployment and falling real wages, median wage earner families’ real income has fallen consistently since 2008.

[FreakinDJ]

1. But Wall St and the Top 1% made record gains