Forget a Double-Dip, We're Still in One Long Big Dipper - Robert Reich

[ProfessionalLeftist]

. . .

Ignore the government haters who say we have to void or delay upcoming regulations of Wall Street and big business. We got here because Wall Street went bonkers, the housing bubble burst, and the middle class couldn't continue to spend because their health-care bills were soaring and their pay was stagnating. New regulations of Wall Street and big business are necessary to avoid a repeat.

And don't believe the supply-siders who say we have to extend the Bush tax cuts for the wealthy. Because the wealthy save rather than spend most of their incomes, extending their tax cut won't do squat. And restoring their marginal tax rate to what it was under Bill Clinton won't harm the economy. The Clinton years had the best sustained economy in American history.

The central problem is lack of demand -- and that's what has to be tackled.

Three of the four sources of demand have stopped working. (1) Consumers can't and won't buy because they're still under a huge debt load, can't get more credit, are afraid of losing their jobs (or already have), depend on two wage earners, at least one of whom is working part-time and pulling in less, or have to save. (2) Businesses won't invest and spend on creating more jobs if they don't see consumers willing to buy more. (3) Exports are stalled because the dollar is so high they cost too much, much of the rest of the world is still struggling with recession, and American firms can make things for sale abroad more cheaply abroad.

That leaves only one remaining source of demand -- government. We need a giant jobs program to hire people and put money in their pockets that they'll spend and thereby create more jobs. Put ideology aside and recognize this fact. If it makes you more comfortable call it the National Defense Jobs Act. Call it the WPA. Call it Chopped Liver. Whatever, we have to get the great army of the unemployed and underemployed working again.

Also: Put more money in consumer's wallets by eliminating payroll taxes on the first $20K of income (and make it up by applying payroll taxes to incomes over $250K.)


MORE...

http://www.huffingtonpost.com/robert-reich/forget-a-double-dip-were_b_682334.html

[Skink]

1. Yeah baby

Also:" Put more money in consumer's wallets by eliminating payroll taxes on the first $20K of income (and make it up by applying payroll taxes to incomes over $250K.)"


this was Skinks idea from about 2005 btw.

[sad sally]

2. As a former Labor Secretary Reich knows what he's talking about, but

the giant jobs program should address this Country's real needs: the failing infrastructure that's been talked about and talked about with very little done (aging bridges, aging rail system, aging water and sewer systems, failing levies and dams); affordable housing with low-cost utilities (solar, wind); safe sustainable nutrious food supplies (support for the small local farmers and ranchers); affordable alternative transportation (what happened to the idea of small affordable, electric cars?).
More rants: make college and training affordable or maybe even free for students who agree to put their degrees to work for America (do we really need so much money spent on college sports - am I being debbie downer?); stop over-medicating! (limit the number of drug advertisements on tv and in magazines - any correlation between all the synthetic food we eat and illness that requires so many prescription drugs?)
And if this giant jobs program puts people to work at good paying jobs with money in their pockets/credit unions to spend, do we really need every product to be made in China? (can we open up some of those closed down manufacturing plants and start making at least some goods in America for Americans - like the Germans do?)
'nuff said...

[inna]

3. Welcome to jobless recovery.

[The Northerner]

4. +1