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Posts Tagged ‘Recession’

Conservative Journalist Takes Every Single Republican To Task

Politicususa
June 15, 2011

By Ray Medeiros

Will the GOP listen to one of their own? Liberals have been saying this for 10+ years now, but had obviously been cast aside by the GOP and conservatives as not important, divisive, and just plain old class warfare. The subject is simply wages, American workers’ share of total national income and the decline of the American workers’ former exceptional standard of living.

The gentleman in question is an author of the many conservative books, including In January 2003, The Right Man: The Surprise Presidency of George W. Bush, an End to Evil was co-written with Richard Perle. It defended the 2003 invasion of Iraq, and advocated regime change in Iran and Syria, and finally in 2008 he published Comeback: Conservatism That Can Win Again, a work which garnered “lavish praise from his friends.” Former Congressman David M. McIntosh called “required reading for all GOP candidates.”

The author is by no means liberal. His name is David Frum and he simply asks TWO questions to the Republicans Presidential candidates. Is this a problem? If yes, what can be done about it? The two questions were regarding new statistics from the St. Louis Federal Reserve and the Bureau Of Labor and Statistics.

What the new statistics indicate is that over the last TEN YEARS, specifically right after the 2001 recession, non-farm wages have been on a steep decline. The wages of working class Americans continued to decline even from 2003-2007, which was during economic growth and plummeted again with the current enduring Republican recession.

MORE HERE

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9 Signs That We May Be Living Through Another Depression

Three in 10 Americans say we’re living through another depression — are they right?
AlterNet / By Joshua Holland
June 1, 2011  |

A poll released this week found that a majority of Americans are experiencing so much anxiety over the state of the economy that they’re losing sleep, experiencing relationship issues and getting angry. Two-thirds of those polled by Newsweek and the Daily Beast even said they were “angry at God.” Pollster Douglas Schoen concluded that “reality is beginning to break down Americans’ normally optimistic attitude.”

Another poll found that three in 10 Americans believe we’re living through a depression rather than a recession.

Yet the reality that’s breaking down Americans’ sunny optimism is obscured by reports that the economy is in recovery, and has been since June 2009. That’s a technical determination that does absolutely nothing for tens of millions of people living through the worst economic pain since the 1930s.

A little-discussed aspect of this downturn is that many Americans never fully recovered from the last one before the crash hit. In 2000, before the dot-com bust, a person right in the middle of the economic pack took home $27,833 inflation-adjusted dollars, and since then, that same person has only earned more in one year – 2006 (Excel). By 2008, the median income was a thousand bucks less than it had been in 2000, and then in 2009 and 2010 we saw the largest two-year drop in wages and benefits since 1962-’63.

Depressions don’t always unfold in the same way. The bleak period following the 1929 stock market crash has come to be known as the Great Depression, but it was not the first brutal downturn to be characterized as such. Between 1873 and 1896, the big industrial powers went through what was then called the Great Depression, and has since become known as the Long Depression.

The Long Depression never reached the grinding severity of the 1930s downturn; in fact, it was actually two severe recessions that bookended a period of rapid growth in the 1880s. Today, having “lost” much of the past decade, and with the economy looking like it may well head into a second period of recession – or at best a gradual, drawn-out road to economic health – historians may well come to view this period as another kind of Long Depression.

Consider how bleak the 2000s were relative to past decades. According to the Economist, “In the years between 1940 and 1999 the number of Americans employed outside farming grew by an average of 27 percent each decade,” but the 2000s saw the employment rate actually fall by around 1 percent.

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The Republicans shouldn’t be taken seriously anymore.

It seems obvious, but in order to be taken seriously, politicians have to be, you know, serious. Not just in terms of personality or behavior, but primarily in terms of policy and lawmaking. If a politician refuses to propose serious ideas and only pumps out nonsensical bumper-sticker sloganeering, fear-based histrionics or symbolic legislative measures that pander to kneejerk interest groups, then he or she ought to be summarily refused the privilege of our deference, respect and, especially, our vote.

Very few modern Republicans and conservatives qualify. They fail the seriousness test at almost every level — from the Republican leadership on down the line.

Take Eric Cantor, for example. The House Majority Leader. The second most powerful Republican in Washington. Whenever I write about Eric Cantor, I’m generally met with the reaction of crickets chirping. He’s not as well-known or as incendiary as Sarah Palin or Glenn Beck. But he’s exponentially more important, and so we have to pay attention to what he’s doing.

You might recall how Cantor, along with 228 House Republicans, permanently attached their names to proven scam-artist James O’Keefe by voting to de-fund NPR in reaction to O’Keefe’s latest sting video. Like all of O’Keefe’s work, the NPR video was selectively and deceptively edited to make it seem as though an NPR executive was expressing personal views about tea party Republicans. Within days of the release of the video, Eric Cantor publicly embraced O’Keefe and expressed outrage at the dubiously-attained videotape. In his public remarks, Cantor announced the effort to de-fund NPR. Later, the House successfully voted to codify the work of a known fraud.

Should Eric Cantor really be taken seriously? No way. And it gets worse.

Yesterday, Cantor announced a piece of legislation that might as well legalize hobbit marriage and cut the budget for time-traveling DeLoreans. It’s just that fantastical.

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The Third Depression

THE NEW YORK TIMES- By PAUL KRUGMAN
Published: June 27, 2010

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.

We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.

And this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting — governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.

In 2008 and 2009, it seemed as if we might have learned from history. Unlike their predecessors, who raised interest rates in the face of financial crisis, the current leaders of the Federal Reserve and the European Central Bank slashed rates and moved to support credit markets. Unlike governments of the past, which tried to balance budgets in the face of a plunging economy, today’s governments allowed deficits to rise. And better policies helped the world avoid complete collapse: the recession brought on by the financial crisis arguably ended last summer.

But future historians will tell us that this wasn’t the end of the third depression, just as the business upturn that began in 1933 wasn’t the end of the Great Depression. After all, unemployment — especially long-term unemployment — remains at levels that would have been considered catastrophic not long ago, and shows no sign of coming down rapidly. And both the United States and Europe are well on their way toward Japan-style deflationary traps.

In the face of this grim picture, you might have expected policy makers to realize that they haven’t yet done enough to promote recovery. But no: over the last few months there has been a stunning resurgence of hard-money and balanced-budget orthodoxy.

As far as rhetoric is concerned, the revival of the old-time religion is most evident in Europe, where officials seem to be getting their talking points from the collected speeches of Herbert Hoover, up to and including the claim that raising taxes and cutting spending will actually expand the economy, by improving business confidence. As a practical matter, however, America isn’t doing much better. The Fed seems aware of the deflationary risks — but what it proposes to do about these risks is, well, nothing. The Obama administration understands the dangers of premature fiscal austerity — but because Republicans and conservative Democrats in Congress won’t authorize additional aid to state governments, that austerity is coming anyway, in the form of budget cuts at the state and local levels.

Why the wrong turn in policy? The hard-liners often invoke the troubles facing Greece and other nations around the edges of Europe to justify their actions. And it’s true that bond investors have turned on governments with intractable deficits. But there is no evidence that short-run fiscal austerity in the face of a depressed economy reassures investors. On the contrary: Greece has agreed to harsh austerity, only to find its risk spreads growing ever wider; Ireland has imposed savage cuts in public spending, only to be treated by the markets as a worse risk than Spain, which has been far more reluctant to take the hard-liners’ medicine.

It’s almost as if the financial markets understand what policy makers seemingly don’t: that while long-term fiscal responsibility is important, slashing spending in the midst of a depression, which deepens that depression and paves the way for deflation, is actually self-defeating.

So I don’t think this is really about Greece, or indeed about any realistic appreciation of the tradeoffs between deficits and jobs. It is, instead, the victory of an orthodoxy that has little to do with rational analysis, whose main tenet is that imposing suffering on other people is how you show leadership in tough times.

And who will pay the price for this triumph of orthodoxy? The answer is, tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again.

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Over the weekend, I took a rainy walk down Wall Street and through the financial district in lower Manhattan. As I navigated my way across the busy intersections and between the arrays of decorative sidewalk bollards, I noticed something really strange.

No protesters.

None, despite the fact that within that very space, the near destruction of the world economy was detonated, igniting one of the deepest recessions in American history and accompanied by 500,000 job losses every month.

Not only was the district free of protesters, but I spotted a gaggle of grinning tourists merrily gathered on and around the famous “Charging Bull” statue. One woman was having her picture taken while crouched down and cupping the bull’s gigantic watermelon-sized brass testicles. Actually, you could say that there was at least one tea bagger downtown. But, you know, the wrong kind.

As I marveled at the incongruous serenity of the financial district, I couldn’t help but to wonder if all of this talk about massive job losses and a near-meltdown was an elaborate hoax, or whether Americans by-in-large simply don’t give a rip, choosing instead to continue on their merry way, acquiescing to a failed system rather than lashing out against the horrors of deregulatory Reaganomics, and, consequently, taking action against the real killers. In other words, while political participation appears to be cresting a wave, there’s still a considerable level of apathy about demanding accountability from the crooks who nearly screwed us all.

This apathy is especially evident in the health care crisis.

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This Crisis Is Way Bigger Than Dead Banks and Wall Street Bailouts

By James Galbraith, Washington Monthly. Posted March 23, 2009.

Why the economic crisis, and its solution, are bigger than anyone has so far admitted.

Barack Obama’s presidency began in hope and goodwill, but its test will be its success or failure on the economics. Did the president and his team correctly diagnose the problem? Did they act with sufficient imagination and force? And did they prevail against the political obstacles — and not only that, but also against the procedures and the habits of thought to which official Washington is addicted?

The president has an economic program. But there is, so far, no clear statement of the thinking behind that program, and there may not be one, until the first report of the new Council of Economic Advisers appears next year. We therefore resort to what we know about the economists: the chair of the National Economic Council, Lawrence Summers; the CEA chair, Christina Romer; the budget director, Peter Orszag; and their titular head, Treasury Secretary Timothy Geithner. This is plainly a capable, close-knit group, acting with energy and commitment. Deficiencies of their program cannot, therefore, be blamed on incompetence. Rather, if deficiencies exist, they probably result from their shared background and creed — in short, from the limitations of their ideas.

The deepest belief of the modern economist is that the economy is a self-stabilizing system. This means that, even if nothing is done, normal rates of employment and production will someday return. Practically all modern economists believe this, often without thinking much about it. (Federal Reserve Chairman Ben Bernanke said it reflexively in a major speech in London in January: “The global economy will recover.” He did not say how he knew.) The difference between conservatives and liberals is over whether policy can usefully speed things up. Conservatives say no, liberals say yes, and on this point Obama’s economists lean left. Hence the priority they gave, in their first days, to the stimulus package.

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As Obama Readies To Sign The Stimulus Package, Several States Are Already Experiencing Economic Distress

As President Barack Obama is poised to sign momentus economic recovery legislation tomorrow in Colorado, there are several US states that are already boiling over in economic distress.

Most notably are Kansas, which is suspending their income tax refunds and may miss payroll on state workers, and California which just cannot pass their budget deal due to short falls remaining.

We remain cautiously optimistic watching historic events unfold tomorrow as President Obama still has a wide margin of support.  We hope Obama can steer America through these trying times and we must not let defeatist voices halt our progress towards a bright future.

These are the times that try our Nation but this is also the time that gives us the chance to reinvent, find ourselves,  and to follow our better Angels.

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