Dean Baker: Only Spending Can Save Us Now

[flpoljunkie]

Only spending can save us now
Deficit worries distract from a more pressing issue: unemployment

BY DEAN BAKER / NEW YORK DAILY NEWS

PUBLISHED: MONDAY, FEBRUARY 18, 2013, 3:59 AM
UPDATED: MONDAY, FEBRUARY 18, 2013, 3:59 AM

Public debate over economic policy has unfortunately been buried in a pointless debate about deficits. This is unfortunate because it ignores the most urgent problem facing the country: an economy that remains severely depressed following the collapse of the housing bubble.

The 7.9% unemployment rate would at other times be viewed as a disaster. The first stimulus was passed under President George W. Bush when the unemployment rate was a mere 4.7%. Even the 7.9% figure understates the severity of the downturn, because it excludes millions of part-time workers and people who have given up looking for work.

Instead of focusing on unemployment, however, the national political debate has become centered on distant debt targets. The assumption in this debate is that the country has a chronic debt problem that is threatening to undermine its financial and economic stability.

But here’s the simple truth: there is no debt problem.

Read more: http://www.nydailynews.com/opinion/spending-save-article-1.1265644

[Agschmid]

1. Good read thanks, kick!

[Jeff In Milwaukee]

2. Spending...

and every nickel of it should come from windfall profits taxes on corporations.

Remember how we had to lower their tax rates because they're the "job creators" and all that? Well since they're not using their tax breaks to create jobs, I want my fucking money back. They're sitting on a trillion or more in cash that was SUPPOSED to be creating new jobs for Americans, yet all they're doing is shipping jobs elsewhere or importing employees who will work for a bucket of fish heads per week.

Fuck them. I don't care if they do Go Galt on us -- just leave my cash behind.