I’m taking a semi-day off. In the mean time a look beyond the noise and bull of the usual dolts. What the people really want. Hint, the mid-terms were not a mandate for the tea smokers. Who Says Grow Jobs Before Cutting Spending? Everyone.
This week, yet another poll showed the public puts creating jobs ahead of deficit reduction for the “top priority of the federal government.”
Are the masses simply pining for the candy of American politics? Should we instead follow the hard-headed advice from our elite economists and budget experts?
Fortunately, they are saying the same thing.
Leaving aside the hacks from ideological “advocacy tanks,” credible experts from widely varying political backgrounds all say the same thing: create jobs first.
There may differences of opinion regarding how to eventually reduce our budget deficits, but no one argues that we should embrace austerity now and risk a double-dip recession which would only deepen the debt.
Here’s just a sampling:
Federal Reserve Chair Ben Bernanke:
“I think that if [deep spending cuts were] that’s all that was done that the costs to the recovery would outweigh the benefits in terms of fiscal discipline.”
Former President of the Peter G. Peterson Foundation David Walker, and President of the Economic Policy Institute Larry Mishel:
“Though a concern, most of the recent short-term rise in the deficit is understandable. Furthermore, public spending can help compensate for the fall in private spending, and help stem the pain of substantial job losses … job creation must be a short-term priority.”
Economist James K. Galbraith:
“The hue and cry over deficits cannot sidetrack us from our true goals of full employment and sustainable energy … People need work. We face the challenge of climate change. This challenge must be met while also improving the quality of life, or it can never be met at all. The broad outline of a program is therefore plain. There is no mystery about it. In 1929, Keynes wrote, ‘there is work to do; there are men to do it. Why not bring them together?’ Today as then, it is that simple.”
“The clear and present danger to recovery, however, comes from politics — specifically, the demand from House Republicans that the government immediately slash spending on infant nutrition, disease control, clean water and more. Quite aside from their negative long-run consequences, these cuts would lead, directly and indirectly, to the elimination of hundreds of thousands of jobs — and this could short-circuit the virtuous circle of rising incomes and improving finances.”
[ ]…Former Chair of Reagan administration’s Council of Economic Advisers Martin Feldstein:
“in the end, [the stimulus] just wasn’t big enough, and I think we all recognize that now.”
Economics is not just the dry science for most people, including myself, it is the dismal science. The media does a terrible job of explaining events in a straight up way that non-economists can easily understand. They’ll tell you how the market is doing every morning, but goodness forbid they connect some dots. between some state laying off 5,000 workers and the affect on that state’s economy. The Right and the and their substances noise machine – now, not during the years 2000 to 2008 – babble on about how dangerous deficits are( Do these tea nuts and elitist libertarians have any desire to see some recovery in the housing market or are they the least concerned about inflation). The deficit peacockery has gone from eye popping hypocrisy to mind numbing twittery. The bottom line is relatively easy. The state and federal government can cut spending and jobs all day long. Sure those states and the fed will have less expenditures, but they will also have created millions more unemployed. Unemployed people do not add much to revenue via federal taxes, property taxes, sale taxes or fees, since they are not making money. The unemployed do not buy products or services from businesses -small or large – who in turn will also generate less revenue. Former Vice-President Dick Cheney once declared deficits don’t matter – as that Republican administration ran up the biggest deficits in our nations history while also letting Wall St run wild and crash the economy. Now deficits matter, but not as much as keeping people employed and those people having the income and self-respect that comes from employment.