Robert Reich: Fund the Damn Jobs! We need a giant federal jobs program.

[Better Believe It]

Fund the Damn Jobs: Deficit Fear-mongering Only Helps the Rich
We aren't in this mess because of budget deficits. In fact, the only way to jump-start our economy is for the government to create jobs.
By Robert Reich
August 15, 2010


It’s nonsense to think of the economy heading downward again into a double dip when most Americans never emerged from the first dip. We’re still in one long Big Dipper.

Forget the Neo-Hoover deficit hawks who day we have to cut government spending and trim upcoming deficits. We didn’t get into this mess and aren’t remaining in it because of budget deficits. In fact, the only way to reduce long-term deficits is to restore jobs and growth so government revenues rise and expenses like unemployment insurance drop.

The central problem is lack of demand — and that’s what has to be tackled.

Three of the four sources of demand have stopped working. (1) Consumers can’t and won’t buy because they’re still under a huge debt load, can’t get more credit, are afraid of losing their jobs (or already have), depend on two wage earners at least one of whom is working part-time and pulling in less, or have to save. (2) Businesses won’t invest and spend on creating more jobs if they don’t see consumers willing to buy more. (3) Exports are stalled because the dollar is so high they cost too much, much of the rest of the world is still struggling with recession, and American firms can make things for sale abroad more cheaply abroad.

That leaves only one remaining source of demand — government. We need a giant jobs program to hire people and put money in their pockets that they’ll spend and thereby create more jobs. Put ideology aside and recognize this fact. If it makes you more comfortable call it the National Defense Jobs Act. Call it the WPA. Call it Chopped Liver. Whatever, we have to get the great army of the unemployed and underemployed working again.

Also: Put more money in consumer’s wallets by eliminating payroll taxes on the first $20K of income (and make it up by applying payroll taxes to incomes over $250K.)

Also: Get more hiring by giving the states and locales interest-free loans — so they can rehire all the teachers, fire fighters, police officers, and sanitation workers they’ve fired — to be repaid when their state employment rates hit 5 percent or below.

Also: Get more credit by having the Fed return to “quantitative easing” — expanding the money supply by purchasing mortgage-backed and other types of securities.

If we let the deficit hawks and government haters dominate this debate, as they have, the Big Dipper will continue for years. The Great Depression lasted twelve.

Please read the full article at:

http://www.alternet.org/economy/147850/fund_the_damn_jobs%3A_deficit_fear-mongering_only_helps_the_rich/

[steve2470]

1. k and r X 100,000,000 nt

[aquart]

2. We needed it a year ago but nothing's more important than the big banks.

The small ones dropped dead one by one, Friday by Friday.

[jtuck004]

3. I wonder how long we are going to be comfortable with throwing away

30 million unemployed and underemployed people. Unless the feds step in and invest our tax money into the American public millions of these people ages 55 and up may have worked the last job they will ever have. And the number is going to grow over the next year...

Fund a program now.

[dotymed]

53. Also,

when you have a populace that is mostly in their 40-50's,unemployed and uninsured (health insurance should be illegal) what are they supposed to do? How can they overcome illnesses? Most of them have dental problems, eye problems and, at least, age related health issues.
Screw the For Profit Health care machine.
All of our "major allies" and alot of our non-allies, ALL take care of their citizens health care needs. Their taxes do.
We must have universal health care and a jobs program.
Both can easily be accomplished by rolling our progressive tax system back to where it was in the 60's and 70's.
Instead, 98% of Americans, sit by and allow the uber-wealthy to ruin their lives, in hopes that they will get a low paying job from them along with the pride destroying pleasure of watching them immensely prosper while we worry about existing.
America, the police state for the wealthy, has no concern for the majority of its citizens other than to Profit from them through freedom killing laws.
Of course, America HAS to $pend more than all of the rest of the world combined, on war....

[DJ13]

4. The fact that Reich isnt in the admin (or just an advisor) says a lot

about the politics of this WH.

[Jackpine Radical]

15. Reich, Krugman, Stiglitz, Galbraith...

[glitch]

38. Or David Korten. That Wall St retreads were chosen tells us something most of us will not hear. nt

[depakid]

41. Dean Baker, Simon Johnson, Brooksley Born...

[amborin]

47. Bernstein....

[progressoid]

5. k/r

[earthboundmisfit]

6. K & R

President Obama, you need to dump Summers & Geithner and bring Robert Reich and Elizabeth Summers aboard!!!

[Fumesucker]

7. Brother Robert is starting to sound more and more like a woodhuck..

Perhaps we should call the exterminator?

We don't need even more rodent problems around here.

[fogonthelake]

40. woodhuck? is that a counsin to the woodchuck?

[Desertrose]

8. Giant K & R nt

[xchrom]

9. recommend

[SlimJimmy]

10. What happened to the other half of the stimulis money?

When are we going to spend it?

[Jackpine Radical]

16. When the banksters need to finance

their next round of bonuses.

[SlimJimmy]

24. Well, that's crap. We should be spending it now on

job creation, not on some frigg'n banker's bonus. With unemployment at nearly 10%, I can think of much better uses for it.

[Jackpine Radical]

33. I agree absolutely.

And, while the bank bailout may have done some things to prevent us going even further into what they euphemistically call a recession it was not a particularly efficient way to do so. The big banks should have been dismantled à la Glass-Steagall and most of the money should have gone to the people who were losing their houses, and to job creation via public works projects. As for the auto companies, bankrupt 'em and sell them to the workers, who could then run them as producer cooperatives. Let's try "trickle-up" for once.

[SlimJimmy]

67. I agree. We would have been light years ahead of where we are now.

It's not that government doesn't have its place, it certainly does. Social programs like police, fire, schools, and roads are always a very wise way to spend tax dollars. The bailing out of their corporate buddies is not a wise expenditure of tax dollars at all. Sometimes, letting a business go down the tubes, then reorganizing it is the best method. Throwing good money after bad is no way to run a country, or a business.

[dotymed]

56. Realistically

unemployment is way over 10%. The government counts only those (maybe) who are actively searching for a job. So many people have had to settle for 3 minimum wage jobs, if they can find them, and forgo heath insurance of any kind.
Many also stand at street corners begging for money.
As a parent, I want to cry when I think about my sons childhood, compared to mine.
I used to make decent money as a Union Carpenter. My health has forced us into poverty....

[JustAnotherGen]

11. I love Robert Reich

He actually emailed me back last summer during the health care debate. :rofl:

I've screaming "Infrastructure" since early 2008. We need it now.

[Bonhomme Richard]

12. Just had a conversation with two sensible successful people.

Both of them, separate instances, are really pissed at both parties. The republicans for getting us in this mess, and the Democrats for not doing enough to get the economy rolling. Both mention how the bankers/wall street have gotten most of the benefit from the stimulus and that the money is being hoarded. Talked about the top 1000 corporations sitting on a trillion dollars and refusing to spend it and the bankers waiting for people to cry uncle so they can buy up assets pennies on the dollar. They are waiting for commercial real estate to crash which they expect in 2011 to buy up those assets.
At the end of the day the winners in all this really don't give a shit about the country. It is all about them.

[bertman]

31. Makes sense to me, BR. Thanks for posting that. nt

[laughingliberal]

49. +1000 nt

[TheKentuckian]

13. Big K&R for some sense

[Kat45]

14. Just posted the article to my facebook page.

Now my freeper FB friend will probably chime in with more right wing bullshit.

[Better Believe It]

18. Read Bob Herbert's article if you haven't already.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8948717

[Kat45]

22. I did read it. Another great article.

And I posted his article on jobs from the previous week on my facebook page too. Sadly, when nobody comments it makes me wonder if anyone is bothering to read the articles.

http://www.nytimes.com/2010/08/10/opinion/10herbert.html

[Better Believe It]

23. Thanks for the link. Just read his earlier article for the first time.

[INdemo]

61. He outlined FDR type programs during his campaign..

Clean energy projects etc,and rebuilding the infrastructure..So where did this money go..It was set aside as part of the stimulus..And what about the money banks received to loan to small businesses..Where did it go?
All the money approved for job creation is floating out there somewhere..

[Better Believe It]

71. In answer to your question here is what the stimulus money is being spent on

Out of 787 billion dollars in job "stimulus" funding here is what will be spent for actual infrastructure and energy job creation projects:

Infrastructure - $101 Billion
$30B - Highways
$20B - School Renovation
$17B - Health Information Technology
$13B - Transportation Projects
$8B - Water Projects
$7B - Military and V.A. Construction
$6B - Accelerated Deployment of Broadband

Energy Efficiency - $59.5 Billion
$22B - Federal Energy Efficiency Grants
$19B - Other Energy Efficiency Grants
$11B - Smart Electric Grid
$8B - Renewable Energy Loan Guarantees

Tax Cuts - $314 Billion
$99B - Payroll-Tax Holiday
$90B - Business Expenses Tax Breaks
$25B - Earned Income Tax Credit
$20B - Renewable Energy Tax Credit
$10B - Tuition Tax Credit
$70B - AMT Tax Cut


That's pretty much it.

The three Republican Senators who wrote the stimulus bill took out 40 billion dollars for badly need school construction, tens of billions of dollars in other infrastructure funding and added the annual alternative minimum tax (AMT)fix to the bill in order jack up the amount of the stimulus bill without devoting those funds to actual job creation! It was a non-stimulative addition to the bill. The 70 billion dollar tax cut was going to get passed by the Senate, as it has been every year, without including it in the stimulus package! Senator Grassley proposed adding the AMT fix.

The rest of the stimulus money is mainly for badly needed economic relief such as unemployment compensation and economic assistance to state/local governments. But, those monies won't create very many jobs for the unemployed while they will enable some government workers to keep their jobs for awhile.

Now you should understand why Roubini and other leading economists said the stimulus plan was totally inadequate for the task. Roubini was a little less diplomatic calling it "puny".

And now the Republicans have been put into the position where they can attack "the Obama stimulus" for not creating the millions of jobs promised!

Nice set-up. President Obama and Democratic Party Senate leaders fell for this Republican trap in their quest for a unnecessary and self-defeating "bi-partisanship".

The three Republican Senators (one now a Democrat) gutted the House stimulus plan. Mission accomplished!

Here's the rest of the stimulus breakdown:

Aids For State and Local Gov - $217 Billion
$87B - Medicaid Cost Sharing
$79B - State Grants
$42B - State and Local Bond Tax Credit
$5B - Community Development
$4B - Rural Development

Relief - $120 Billion
$42B - Expanded Unemployment Insurance
$40B - Health Insurance for Unemployed
$20B - Expanded Food Stamps
$11B - Housing Assistance
$4B- Supplemental Social Security Income Payments
$3B - Welfare

Human Capital - $45.5 Billion
$25B - Education Programs
$15B - Federal Pell Grants
$4B - Job Training
$2B - Scientific Research

[OhioChick]

17. K&R n/t

[gizmonic]

19. Yes, Yes, Yes

k&r

:banghead:

[foxfeet]

20. K&R

[me b zola]

21. Recommended

[grahamhgreen]

25. Not ONE WORD about the free trade screw job he pressed for...

This is the guy who pushed for free trade and still believes in it.

We need to get out of the free trade agreements, or die, end of story.



Reich in 2003 -

"Global outsourcing is a small factor relative to the bad economy and the productivity gains wrought by automation. The number of IT jobs sent abroad still accounts for a tiny proportion of America's 10-million-strong IT workforce....

The reason is that foreigners can do a lot of IT jobs just as well and much more cheaply than they can be done in the United States. ...

This is good news for consumers. Prices are low. Inflation has become a nonissue. The cost of many technology goods continues to drop.All this means that, despite the long-term trend toward outsourcing IT jobs, there will continue to be plenty of IT work in the United States in years to come.

The US government should not try to protect or preserve IT jobs in America, or block efforts by American companies to outsource. That would only put American companies at a competitive disadvantage. Their rivals in other advanced economies would continue to have access to low-cost IT services from developing nations.The transition will not be entirely smooth. But if we handle it right, American organisations will be stronger and more competitive, and American IT professionals will have rewarding opportunities for years to come."

http://computerworld.co.nz/news.nsf/news/999D3939EC2D99C8CC256DB8006385CB

[Better Believe It]

28. Trade wars can only deepen the recession/depression. That was tried by Herbert Hoover.

And it wasn't the various "free trade" agreements like NAFTA, which I don't support, that caused this economic crisis and depression.

The causes of it have been spelled out by many. The de-regulation of Wall Street was obviously the principal factor.

[grahamhgreen]

30. When India charges a 30% tariff on an American shirt, and the US charges a 3% tariff

on an Indian shirt we can not compete.

We are already enmeshed in trade wars, the so-called free trade agreements simply cause us to lose them, that's all.

There is no way an american can compete with a laborer making $3/day. It is not possible.

Global trade does not equate with allowing the importation of cheap goods that crush American jobs. Remember, the tea in the Boston harbour came from China.

The entire govt was funded by tariffs for 100 years. It's high time we re-instituted these policies.


The de-regulation of wall street is another principal fact, I agree.

[Better Believe It]

35. Profit making companies leave the United States all the time for cheap labor nations.

Not because they can't sell their products at home and abroad, they make huge profits paying a living wage and benefits in the United States, but to simply increase their profits!

The solution to the "tariffs" problem is to end them. All of them.

"The entire govt was funded by tariffs for 100 years. It's high time we re-instituted these policies." Until the late 19th century, the 1880's? And what were our living standards like during that period of early capitalism?

In any case, how and why do you think a world trade war will bring this nation and the world out of this recession/depression?

[Better Believe It]

36. Profit making companies leave the United States all the time for cheap labor nations.

Not because they can't sell their products at home and abroad, they make huge profits paying a living wage and benefits in the United States, but to simply increase their profits!

The solution? Don't let them leave without huge penalties and long term financial assistance to all those who have lost their jobs. Congress can do that. Here we are a year and a half into Obama's presidency and we are still waiting for the Democrats to introduce and pass legislation that won't give corporations tax breaks for leaving the United States and outsourcing!

In addition, United States labor unions should in co-operation with international labor organizations follow these companies wherever they go and organize their new employees! That will make moving less lucrative!

The solution to the "tariffs" problem is to end them. All of them.

"The entire govt was funded by tariffs for 100 years. It's high time we re-instituted these policies." Until the late 19th century, the 1880's? And what were our living standards like during that period of early capitalism?

In any case, how and why do you think a world trade war will bring this nation and the world out of this recession/depression?

[Mimosa]

54. ^ Amen! ^ n/t

[Jim Sagle]

26. k to the r

[mzmolly]

27. Yes indeed.

Fully agree with Reich here.

[Overseas]

29. Millions of Americans didn't cross party lines to vote for Hoover in 2008.

They voted for the Party of FDR -- jobs jobs jobs and national health security and good government.

[bertman]

32. Another REC for Reich. nt

[daleanime]

34. Drop the age for social security....

let one or two million retire. O8)

[Fire1]

62. Retire my ass! You do realize that most of the savings and

investments that were squirreled away by these people vanished in this economic collapse. You do realize mortgages are upside down and SS and pension is not enough to endure the cost of living! I will be working well beyond my retirement years IF I can find somebody to hire me!

[daleanime]

68. You realize that for many Americans...

SS is the only thing that they will have for retirement? Pension-what's that? Investments-do you mean my car? The cost of living is something that most of us have to look up to see.O8)

[Fire1]

70. Realizing this, why on earth would you suggest they lower the

retirement age??

[TexasObserver]

37. Absolutely!

[INdemo]

39. Robert Reich can write these op eds every day but Obama wont listen..

But if the banking industry needed another 50 billion that would get his attention real quick.And tomorrow he would be making another speech explaining how another boost for the banks would help the economy..

[CocaNova]

45. Sigh !

I'm afraid that you're right.:(

[Mimosa]

55. I wish he would. *sad*

I've always been a Reich fan.

[oasis]

58. "If I 'do the right thing' my enemies will call me a Marxist/socialist."

You mean that guy?

[AlbertCat]

42. We need a giant jobs program to hire people

It's not like there's nothing for people to do! Blue, white and pink collar.

[donheld]

43. If it doesn't happen soon it may be too late

[earcandle]

44. Thank you Robert, hope you have some clout!

[Mark D.]

46. What Is So Sad

Is this man should be treasury secretary, not Tim Geithner. Make Howard Dean chief of staff, not Rahm Emanuel. I'm sure Dennis Kucinich could run the department of peace idea he has as well as continue to be in Congress. Finally, damned right, put Elizabeth Warren in charge of the consumer protection agency that is forming. Let Alan Grayson plan the Afghan draw-down strategy. The real solutions for what is clobbering America, and ruining our prospects in the world are with the above people. They are just not being implemented. The government should be about finding the best solutions. If we did get an over 60 Democratic (real, not more fake blue dogs) majority and those things were done, before the end of Obama's first term we'd be barreling toward a huge recovery. He'd get re-elected easily, if he allows this to happen.

This would lead to a recovery that would eclipse Clinton's, we could start paying down the debt again. If we allow Bernie Sanders and Dennis Kucinich push through Single Payer Healthcare, it would make things complete. America would regain its top nation status, peace strategies would ensure Iran full cooperates, Israel and Palestine find peace, and north and south Korea work together. The worst isn't that we DO NOT know how to get there. We do, they do. If implemented it would work. But media getting many who are honestly angry to run in the wrong direction with Tea Parties and Kool Aid will ensure such a thing never happens. We haven't seen nothing yet until when the SCOTUS corporate advertising ruling brings those f*ckers on full steam. We'll be barreling toward a neo-feudal corporatist plutocracy then. God help America.

[laughingliberal]

48. K & R nt

[Goldstein1984]

50. One word: Infrastructure!!!

[Axle_techie]

51. I wish I could give this 390+ recs

one for each day I have been unemployed and struggling to feed my wife and kid since I don't draw unemployment do to a technicality my previous employer exploited.

[lonestarnot]

52. Excellent. Have always respected his opinion and on this issue,

I agree with him.

[Frisbee]

57. Why has this administration distanced itself from...

those who could help them the most? (Robert Reich, Howard Dean, etc.)

[Better Believe It]

59. Because they disagree with and oppose progressive solutions. They mainly represent Wall Street.

That's what I think.

Any alternative explanations?

[Frisbee]

69. I wish there were.

:shrug:

[NikRik]

60. Everyone should read details of New Deal !

New Deal, name given to the peacetime domestic program of United States president Franklin D. Roosevelt, and especially to the innovative measures taken between 1933 and 1938 to counteract the effects of the Great Depression.
I went ahead and read all the details of our great President Roosevelt's New Deal and what was called the Second New Deal in which a massive program was put into place to create jobs, increased taxing on the wealthy etc,etc !
The result was it worked ,so perhaps if the nay sayers would just read up on our history they would see what worked in the past and allow the formation a a Third New Deal to create massive amount of new jobs and traning programs with the goverments help !
IMHO NikRik

[leeroysphitz]

63. I guess even Robert Reich wants a pony now. n/t

[Mark D.]

64. No

He wants more jobs for Americans. He's obviously doing okay on his own. He displays empathy missing from those doing okay, towards those not doing okay. What you are saying makes no sense at all. It's never been about himself, he's trying to help that bottom 99%.

[leeroysphitz]

65. What I said does make sense if you look at it with the following caveat:

Pony = The unreasonable expectation that the current admin will get off the fence for once and take effective timely action to help americans even if it isn't listed in the Triangulation handbook.

[unpossibles]

66. Excellent and I agree

There are critics of the WPA but about every community in America still has lasting benefits from it, as well as the connecting infrastructure tying cities together in the form of roads, bridges, etc. We need to do this not only for the economy but because our infrastructure is rotting and needs to be updated with newer tech.