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NYT: Stuck in Place
And, why we are stuck in place. Emphasis mine.
Stuck In Place
Published: August 3, 2012
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.
Politics, however, has gotten in the way of even basic moves to push the economy upward.
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.
Mitt Romney responded to the July report by saying that the numbers reflect the failure of Mr. Obama’s policies when, in reality, they reflect the success of the Republican obstructionism.
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.
Published: August 3, 2012
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.
Politics, however, has gotten in the way of even basic moves to push the economy upward.
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.
Mitt Romney responded to the July report by saying that the numbers reflect the failure of Mr. Obama’s policies when, in reality, they reflect the success of the Republican obstructionism.
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.