Stuck in Place
NEW YORK TIMES Editorial …When consumption and investment are not powering the economy, the government sector has to fill the gap with stimulus to boost consumer demand. Much of the economy’s flat performance since 2011 reflects insufficient stimulus, reinforcing insufficient demand. That means sluggish job growth, lackluster pay and persistently weak demand. It’s not a downward spiral, but it is self-reinforcing stagnation ..
Responding to the latest employment report, the White House noted correctly that major areas of job weakness — including positions in construction and teaching — are precisely those that would have been the subject of the jobs bill proposed in 2011 by President Obama. That legislation was blocked by Congressional Republicans….
That leaves the Federal Reserve to try to boost the economy. But what’s needed is direct intervention in the form of more federal spending on education, infrastructure, clean energy, basic research and job training. Until then, we’re stuck… (more)
EDITOR: At this point, failure for the economy to grow is fully the responsibility of the Republican Party. When in 2010 and 2011 virtually every economist in the country begged for fiscal stimulus, they turned their backs to gain an advantage in the 2012 election. Shame.
First we must get people back to work, off the dole and paying taxes, and then deal even further with the deficit problem.