Obama’s Private Sector Jobs Record
Thanks for half of the truth. Robert Reich is looking at whole picture:
In their haste to cut the public debt, Europeans have overlooked the denominator of the equation. By reducing public budgets they’ve removed a critical source of demand — at a time when consumers and the private sector are still in the gravitational pull of the Great Recession and can’t make up the difference. The obvious result is a massive slowdown that has worsened the ratio of Europe’s debt to its total GDP, and is plunging the continent into recession.
A large debt with faster growth is preferable to a smaller debt sitting atop no growth at all. And it’s infinitely better than a smaller debt on top of a contracting economy.
The second lesson Merkel and others have overlooked is that the social costs of austerity economics can be huge. It’s one thing to cut a government budget when unemployment is low and wages are rising. But if you cut spending during a time of high unemployment and stagnant or declining wages, you’re not only causing unemployment to rise even further. You’re also removing the public services and safety nets people depend on, especially when times are tough.
Reich’s point there is that the folly of Merkel, Cameron and Sarkozy, et. alia. will be a drag on the U.S. recovery. That could be said of any state government in the USA that is slashing costs, too. It doesn’t matter if it is a neo-fascist like Michigan’s Rick Snyder or another neo-liberal like Kalifornia Über Alles Jerry Brown. Public sector employment creates income as good as or better than the private sector. It’s spending of all kinds that will but the recession away. If the USA wanted to put a dent in the recession, we’d be stealing pages from FDR’s playbook. It’s a given that Obama can’t get that done with right wing reactionaries in congress nor with centrists constantly trying to placate them.
It’s one thing for political campaigns to crank out half-truths like that. Honesty and complex thought have left politics long ago. But it’s different to regurgitate a half-truth from a campaign to be consumed by people with critical thinking capacities; the offense is compounded when said half-truth is presented by someone who has the word “truth” in their URL.