Friday, December 23, 2011
It's All About Jobs
There are a lot of things to like about this piece by David Rohde. Specifically, anyone who identifies jobs as being the number one issue facing the American middle class has got it exactly right.
But, what happens is, when you move on to his second item, you see the problem. Since we are talking about how jobs have evaporated, it's easy to see where so many people get it wrong. Jobs have not left because of government spending; in many cases, those jobs disappeared when austerity and "belt tightening" took over as themes and when our elected officials stopped trying to use proven techniques to revive the economy.
Not all government spending is wrong; trying to get people to embrace that fact means having to move mountains and pound sand. So, when an idea takes hold, it has to be battled back, time and again. One of the great failures of this era has to be the failure to destroy the idea that the government should cut spending during a recession. We've seen, time and again, where this leads to a downward spiral.
Rohde's piece illustrates that, perfectly. At the end of his piece about jobs, he writes about how 20,000 jobs have been slashed. Why? Because of item number two--a misguided effort to battle the deficit. If we had the political will to do so, funding state and local governments with Federal grants specifically designed to keep people in their jobs would be a tremendous benefit to both the economy and to fighting the deficit. People who are working pay taxes; this revenue helps reduce deficits at both the state and Federal level. Whenever someone is thrown out of work, the ripple effect cascades through the economy. Avoiding that buys time so that the economy can recover.
It's all about the jobs. Whoever wants to be President next year has to answer for the need for jobs. And cutting the deficit is not going to create a single job in this country. Period. End of story.