Politicians who say they are going to create jobs and simultaneously reduce the deficit are charlatans.
The real choice is, what a hospital executive calls “the new normal” , that is a continuation for high unemployment for years to come or taking effective actions now to get people back to work.
Sadly, trying to reduce the current deficit simply will worsen the Great Recession, as was demonstrated in 1937 when recovery was thwarted by efforts to balance the budget. And especially today,ongoing recession only increaes the cost of unemployment compensation and the social safety net, while reducing tax revenue. Moreover, at least ten percent of the families suffer grievously.
On the other hand, through stimulus, people get back to work and their purchasing power helps to get others back to work. We could be out of this mess by 2013 with the economy roaring ahead. As was the case during the Clinton years, a strong economy reduces government costs associated with unemployment and generates budget surpluses. Recall that in the year 2000, the worry wasn’t about the deficit but what would happen to the banking system when the national debt was fully paid off!
Also stimulus money that puts unemployed people and resources back to work is not money wasted. It produces infrastructure built for the use of future generations!
We in Pennsylvania have a decision to make when we choose a senator on November 2nd. Joe Sestak is all about getting people back to work. Pat Toomey is for balancing the budget. You get to choose.
