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Showing Original Post only (View all)Why the Economy can't get out of First Gear - Robert Reich [View all]
http://www.nationofchange.org/why-economy-can-t-get-out-first-gear-1339597353The major reason this recovery has been so anemic is not Europes debt crisis. Its not Japans tsumami. Its not Wall Streets continuing excesses. Its not, as right-wing economists tell us, because taxes are too high on corporations and the rich, and safety nets are too generous to the needy. Its not even, as some liberals contend, because the Obama administration hasnt spent enough on a temporary Keynesian stimulus.
The answer is in front of our faces. Its because American consumers, whose spending is 70 percent of economic activity, dont have the dough to buy enough to boost the economy and they can no longer borrow like they could before the crash of 2008.
If you have any doubt, just take a look at the Survey of Consumer Finances, released Monday by the Federal Reserve. Median family income was $49,600 in 2007. By 2010 it was $45,800 a drop of 7.7%.
All of the gains from economic growth have been going to the richest 1 percent who, because theyre so rich, spend no more than half what they take in.
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What about his thesis that not enough money is getting into the hands of enough people but instead
Bill USA
Jun 2012
#2
that's right he was pushing for foreign trade deals as sec of labor. and these trade deals are
Bill USA
Jun 2012
#7
Reich was responsible for Alan "Mr. Magoo" Greenspan's opposition to regulating mortgage lenders.
Bill USA
Jun 2012
#13
Worker Displacement rates were lower during the 90's than in the 80's. see CRS report
Bill USA
Jun 2012
#8
When was he a corporate sell out? When he supported the wage-lowering, jobs-killing NAFTA?
AnotherMcIntosh
Jun 2012
#3
and this is what caused the housing bubble? 2 wars financed on debt & deregulation did not produce
Bill USA
Jun 2012
#11
and this is what caused the housing bubble? 2 wars financed on debt and deregulation did not produce
Bill USA
Jun 2012
#10
Excuse me, but I don't understand your logic. Are you saying that "Reich did not throw blue collar
AnotherMcIntosh
Jun 2012
#12
the point of this thread is why is the recovery going as slow as it is. I quoted Reich who said:
Bill USA
Jun 2012
#18
I know I'll be accused of kicking someone when their down but NAFTA lowered avg wage a whole 0.2%
Bill USA
Jun 2012
#23
The other big problem is that the housing market is not yet back. That is a MUST.
RBInMaine
Jun 2012
#4
Exactly. People make mistakes, Reich is willing to admit his mistakes and move on.
Sirveri
Jun 2012
#21