Right now the US economy is stuck in a vicious circle. Potential employers are not expanding production, so they are not hiring, because demand for their products and services is low. Demand for their products and services is low, because so many people are unemployed, and far too many of those that are do not make enough to support their families, let alone consume additional goods and services. So many people are unemployed and underemployed, because potential employers are not expanding production, so they are not hiring. Recovery demands more and better jobs.
In President Obama’s first term, the fiscal stimulus and the auto-industry rescue of 2009 created and preserved millions of jobs. But the stimulus ended years ago, replaced with temporary measures that have been insufficient to propel the economy forward. Health care reform in 2010 was a major step in the effort to support the middle class, but its broad effects will be felt only in the years and decades to come.
In recent years, the administration and Congress have been consumed with deficit reduction, which is antithetical to job creation because it curbs government spending when the economy is weak. Unless Mr. Obama can shift policy away from premature austerity and toward ways to bolster demand and foster investment, job growth will remain sluggish and unemployment high.
What has been missing for years is a forceful labor agenda — one that calls for more jobs, but also has as its goal rising wages coupled with robust hiring.
Mr. Obama can take an important step in that direction by placing his next labor secretary at the center of his economic team. The first-term labor secretary, Hilda Solis, was largely sidelined, a reflection of the administration’s focus on the recovery of Wall Street, not Main Street. Some of the names that have been floated for the job — including Jennifer Granholm, the former governor of Michigan — show that Mr. Obama is seeking someone of high stature, but any secretary’s ability to be a transformative force will depend on the president’s support… [emphasis added]
Inserted from <NY Times>
Photo credit: A Taxing Matter
Note the differences between recoveries from the great Republican Depression, and the Republican Recession. So fall all the income growth has gone to the super-rich while the rest of us are losing. That is why me need programs similar to those instituted by Roosevelt in the 1930s to get people working, give them money to spend, thus creating demand for more products and services to provide potential employers the incentive to increase production. That will, in turn, increase tax revenue for the government to eliminate the deficit.
16 Responses to “Recovery Demands More and Better Jobs”
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"Note the differences between recoveries from the great Republican Depression, and the Republican Recession. So fall all the income growth has gone to the super-rich while the rest of us are losing. That is why me need programs similar to those instituted by Roosevelt in the 1930s to get people working, give them money to spend, thus creating demand for more products and services to provide potential employers the incentive to increase production. That will, in turn, increase tax revenue for the government to eliminate the deficit."
I do so agree – not only does the USA need such things, but so does the UK! (Fat chance with the Tories in power!).
I agree, Pat. Tories are almost as bad as Republicans.
It seems so simple doesnt it? No Jobs- no money to buy things- so things arent bought and production goes down , less jobs result because no one is buying–
The need to learn from Roosevelt is so apparent—-
You're right. No rocket science needed.
President Regan shortchanged the American worker starting with the air controllers firing… Better quality and overall standard of living would increase for everyone with more equal shared profits of work.
Exactly, Richard.
A little over 150 years ago, Abraham Lincoln recognized the importance of labor in his Joint Session of Congress Address (today called State of the Union):
Excellent, Nameless. I wonder id Republicans will start calling Lincoln a socialist Kenyan.
TC says:
This has been going on for some time. But I thought that the Republican/Teabaggers said that if the "job creators" got more tax cuts, or at least didn't get a raised tax rate, things would be good! Did they lie again? 😯
Billionaire Nick Hannauer is so good at explaining this. The Republican/Teabaggers should let him explain it to them, as if that will ever happen. 🙄
Did they lie? Is the Pope Catholic?
He is.
WPA worked wonders for this country after the great Depression. We need that again. Sorry to say that my senators, McConnell and Paul will not vote for it, hope how soon they are gone. Welcome back, TC, we missed you.
Thanks Edie. The CCC did too.
Increase minimum wage.
Stop out sourcing of jobs to China, India etc.
The 1% need to invest in the country with their 21.5% income increase insteading socking it away in foreign banks.
Support stimulus spending. After all, it was government stimulus spending that significantly helped end previous recessions during both Republican and Democratic recessions. FDR understood!
History has recorded this before — been there, done that — and it worked! The only reason it hasn't worked this time is because the Republican/Teabaggers, unrepentant obstructionists, hold up anything that would help.
A mortgage broker that I assisted on many occasions used to say: I'm a lawnmower. Your ass is grass. Get it done or I will cut you down. Take note Republican/Teabaggers and Democrats alike, the people are the lawnmower. Figure out who YOU are. 2014 and 2016 are coming!
Amen X 5
Pretty sickening!
Indeed!