We should all remember this. We hear often that all the spending and public works programs didn't get the US out of the great depression, it was WWII that finally did it. This, though partially correct it did not return industry to a rolling boil it provided work for millions planting forests, building parks and roads, but this popular myth bends us to an absurd logic if taken to conclusion, seeing the Axis powers as the best job creators this nation ever had. Which leads me to suspect the GOP would gladly land us in another war one day to have the excuse to do what they cannot do now, stimulate the economy through government spending.
If you only remember one thing about this episode, remember that bureaucrats in the government running up massive debt and borrowing launched full employment overnight. Industry did not wake up in Dec. 41 and decide to build bomb fins or recycle scrap steel. No, government cut the checks and mailed them out to make it happen. Like it or not the government is the only thing that can quickly restart a stuck economy the size of the US. Within days of Pearl Harbor money was flying out with the plans and orders, they ordered thousands of precision grinding machines, purchased land for new air bases, increased hundred fold every armament contract on the books. Industry built the machinery of war but it was overseen, planned and funded by government agencies, the "job creators" of the day were firmly attached to the pigs tit, sure they had some latitude, but it was a massive socialist system that they profited from and the nation won the war with.
As to government debt, it can be a scary thing indeed. However, we should not view it as a number out there that sets alone. The debt is not so scary if it is set next to a good growth rate, if the population of future workers is growing, if revenues are increasing. Republicans, especially the really stupid ones, talk about *Greece or other nations in dire straights as comparison, but there is none. Greece has a crazy big debt per cap than us, it has defaulted on it's debt a couple dozen times since WWII, tax cheating is national hobby, the economy is tiny and very narrow compared to the US, they don't have a currency of their own, so it's hardly worth the discussion. The lesson we should be learning, the experiment under way in the US, in the states, in the cities, is to cut governments income (revenues) and the services provided. Under the voodoo economics theory this will stimulate growth. This experiment is taking place also in parts of Europe at the same time. Already the results are becoming evident. Laying off hundreds of thousands of government workers, teachers and food inspectors does little to stimulate houses to be built or the next educated work force to emerge. Cutting hiway projects cause private sector jobs to dry up, this too apparently fails at stimulating a housing boom. The experiment is already a failure, it should be stopped before the patient dies. You cannot help the out of work become workers and tax payers by making it free for the rich to live among us while we reduce every form of service for the common good and meanly add to the unemployed rolls.
Now, the job creators of today. Where are they? If we are to believe the GOP, the upper 1%, or 10% ,use what you will, are the blessing of the world delivered to the USA by God to trickle down on us, and most important to give us jobs for our share of the American Dream. Bull shit. I think it was a politician of the faire sex from Maine if I have it right, a few days ago said something like ....... very few of the 1%ers are job creators. Think about it. Many of these people make their money off the markets and by speculating or collecting royalties. They are not tinkering in an R&D shop with some craftsmen they hired to invent washable toilet paper or a faster power window for the Lexus. No, the closest they come to job creation is contracting for maid service when they visit their homes in Aspen or Cayman Islands. She suggest we devise a way to tax the idle rich and leave the job creators alone. Excellent, but sure as shoot'n their lobbyest will claim they are all job creators if they hold a poor guys mortgage papers, or if they own Boeing stock. Look, stock trading is a secondary market, buy stock and you don't invest one fucking cent in the company, you invest in speculation, a bet that someone else will want it enough to pay more some day. The exception, the guys that started the company, and the IPO stock buyers, everyone else who buys stocks later on can pound trash up there ass and have the same impact on job creation at that corporation.
There are job creators, the guy that put the roof on my house, the guy that bought a machine and started making widgets. But collecting dads insurance policy, or trading foreign currency, or overlooking the bay in Miami while collecting oil well payments from the Texas desert isn't job creating. It's good that these people are able to eat and have shelter, but they should not own the government, nor should we buy the myth they are our blessing, our manna from heaven. Should manna smell like nursing home piss?
(*the reason Greece and some other Euro nations are getting so much attention from the world for it's debt, is in part due to those so called job creators, the bankers and traders who bought these debt/default/swap instruments that brought us to our knees in 2008, in other words, at the same time some try to save it, some take the bet it will fail, if it fails none of these people or banks know the ramifications, other than billions will be swept into the hands of a few somewhere on a sunny isle or penthouse in Dallas while other banks and the Greeks could be brought down.)
Fringe,
ReplyDeleteLogic does not enter into the GOP equation. Greed does. GWB's logic back when he took office was to look at the Clinton surplus and tell people, "hey! That's our money and we should have it back." Funny, the people who benefited the most from his "stimulate the economy" tax cuts are the very ones now NOT saying, "Hey! That's OUR debt and we should pay it." Moreover, the debate in DC has been about making the tax cuts permanent, meaning they are still in effect, meaning, according to GOP logic, the economy ought to be swimming in jobs. I have waited in vain for someone on the Democrat side to stand up and say, "SO WHERE THE FUCK ARE THE JOBS?"
Mr. O. Greetings.
ReplyDeleteMy fear is the current scuffle over the takehome tax deduciton cut is a smoke screen the dems can win and beat the repubs with, but then try to sell to the public they did enough, this would satisfy the rich to as they could pretend a great wound, but will have almost no impact on their continued inflow of the nations wealth and tiny tax burden. It will not dint the rich they will protest too much, but they will see no real difference, this is peanuts, nevertheless they will flood the GOP with cash to punish the dems for it.
Fringe and Mister O,
ReplyDeleteName me ONE single job creating peice of legislation authored by a Republican or better yet - any peice of legislation proposed period
that got Republican backing. I can cite but one - the recent hire vets act. Well, voting against that was political suicide for the Republicans.
I think we need another WPA. Some of that, "You shouldn't get paid to sit on your ass" rings true with me. However, the cooperations will raise hell - and, you know who they have lobbyists with. Both of my grandfathers worked on the WPA.
And, this madness of testing welfare recipitants for drug use is bullshit. If smoking weed or snortin coke is more important than food to you - have at it.
Excellent post...
Sarge
Thanks Ron.
ReplyDelete