Robert Reich explains that economic forecasting can be dicey at best, but some satiations are so obvious, that even I can be accurate, as I was in predicting the Republican depression of 2008. It came three months earlier than I had predicted. Now we face the fallout that must come from continuing to use supply-side economic policies in the face of demand-side economic problems. The Reich on the right, the Republican Reich, is wrong. Listen to the Reich on the left, Robert Reich.
Economic forecasters exist to make astrologers look good, but I’ll hazard a guess. I expect the U.S. economy to sputter in 2016. That’s because the economy faces a deep structural problem: not enough demand for all the goods and services it’s capable of producing.
American consumers account for almost 70 percent of economic activity, but they won’t have enough purchasing power in 2016 to keep the economy going on more than two cylinders. Blame widening inequality.
Consider: The median wage is 4 percent below what it was in 2000, adjusted for inflation. The median wage of young people, even those with college degrees, is also dropping, adjusted for inflation. That means a continued slowdown in the rate of family formation—more young people living at home and deferring marriage and children – and less demand for goods and services.
At the same time, the labor participation rate—the percentage of Americans of working age who have jobs—remains near a 40-year low.,, [emphasis added]
Inserted from <Robert Reich>
Click through for more explanation on how Republicans are feathering the rich’s nests, but sabotaging economic prosperity for the rest of us. The Reich on the left is right again!
13 Responses to “The Reich on the Left is Right Again!”
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Yup–he's nailed it and the Chamber and others will be nailing their own coffins of going out of business if they don't wake up to it.
Good point about the Chamber!
If we can compare the economy to a patient and a President to a doctor, let's just hope the next President won't be the doctor who is "so good – if you're at death's door, he'll pull you through."
Dr. Carson would be impeached for malpractice!!
"Chances are, therefore, the next president will inherit an economy teetering on the edge of recession.
Mr. Reich is right. We pinch pennies, and will have to still squeeze some more to make it go farther.
N.N. Taleb, in "The Black Swan," and "Anti-Fragile" posits the idea that ecomic prediction, in fact any prediction is somethong that humans are just horrid at getting right. Nonetheless, Reich's ideas make a lot of sense to me.
Hopefully, if the worst happens, it will be evident to the populace who caused it.
That will be hard, because Republicans excell at projecxtion.
The Reich is always SO RIGHT, but thank goodness he is on the LEFT SIDE.
I hope his prediction is wrong this time, but it probably isn't. The economy in E. Ky. is plummeting due to the downfall of the coal industry. Most jobs here now are minimum wage and you can barely exist on that.
And the coal employment is down, buree due to automation that regulation.
"…more young people living at home and deferring marriage and children – and less demand for goods and services. " — Part of the reason for the Republican war on women?
Harkening back to billionaire Nick Hanauer, the job creators are the middle and working class. Without sufficient income, no consumption. No consumption, higher unemployment.
"The Reich on the left is right again!" I disagree. The Reich on the left is right, still!
Of course Reich on the left is still right, an anyone who can't grasp the value of what he's saying is a monkey with 3 pairs of hands, covering his ears, eyes and mouth all at the same time.
Thanks all! Hugs!