A Recovery’s Long Odds

[dtotire]

A Recovery’s Long Odds
By BOB HERBERT
Published: September 13, 2010



We can keep wishing and hoping for a powerful economic recovery to pull the U.S. out of its doldrums, but I wouldn’t count on it. Ordinary American families no longer have the purchasing power to build a strong recovery and keep it going.

Americans are not being honest with themselves about the structural changes in the economy that have bestowed fabulous wealth on a tiny sliver at the top, while undermining the living standards of the middle class and absolutely crushing the poor. Neither the Democrats nor the Republicans have a viable strategy for reversing this dreadful state of affairs. (There is no evidence the G.O.P. even wants to.)

Robert Reich, in his new book, “Aftershock,” gives us one of the clearest explanations to date of what has happened — how the United States went from what he calls “the Great Prosperity” of 1947 to 1975 to the Great Recession that has hobbled the U.S. economy and darkened the future of younger Americans.

He gives the Obama administration and the Federal Reserve credit for moving quickly in terms of fiscal and monetary policies to prevent the economic crash of 2008 from driving the U.S. into a second great depression. “But,” he writes, “we did not learn the larger lesson of the 1930s: that when the distribution of income gets too far out of whack, the economy needs to be reorganized so the broad middle class has enough buying power to rejuvenate the economy over the longer term.”

The middle class is finally on its knees. Jobs are scarce and good jobs even scarcer. Government and corporate policies have been whacking working Americans every which way for the past three or four decades. While globalization and technological wizardry were wreaking employment havoc, the movers and shakers in government and in the board rooms of the great corporations were embracing privatization and deregulation with the fervor of fanatics. The safety net was shredded, unions were brutally attacked and demonized, employment training and jobs programs were eliminated, higher education costs skyrocketed, and the nation’s infrastructure, a key to long-term industrial and economic health, deteriorated.

It’s a wonder matters aren’t worse.


more:
http://www.nytimes.com/2010/09/14/opinion/14herbert.html?ref=opinion

[DoctorK]

1. I'll have to look for his book

"how the United States went from what he calls “the Great Prosperity” of 1947 to 1975"

That roughly (and interestingly) coincides with the 'hard dollar' under the Bretton Woods agreement (1945 - 1971). I'm curious what Reich focuses on in that period, since he's not a hard money advocate.

Our post-Bretton Woods currency regime unleashed the banks to create money out of thin air, and the poor and middle class have suffered accordingly.