Reich: The Tortoise Economy

[laughingliberal]

...Can we have a moment of realism here, please?

In 2008 and 2009 the economy fell into the deepest hole it’s been in since the Great Depression. Since then we’ve been struggling to get out. We’re failing big time.

After a typical recession, growth surges until the economy reemerges from whatever hole it fell into and returns to its normal growth path. Usually that surge isn’t difficult to accomplish once the upswing begins because all the assets the economy needs to get back to its old path are readily available — lots of people who have been laid off or have come into the job market and been unable to find work, unused office and retail space, factories and equipment that had been idled. After the economy returns to normal and almost all these people and physical assets are back to work, growth slows to its normal pace.

But this time it’s not happening that way. More than two and a half years after the Great Recession began, many months after we hit bottom and when in a normal “recovery” we’d expect growth to surge, the opposite is happening. Growth is slowing. <snip>

More: http://robertreich.org/

[napi21]

1. I think most of us KNEW this one was going to be really BAD!

I rememhundreds f posts on DU & elsewhere that said Shrub was proping up the economy just long enough fo him to leave office and bequesth the BIG MESS to someone else. That's exactly what he did, but with all the disastrous things his admin did for 8 years, the depression isn't like the others Reich mentioned. One or two problems can be fixed with the traditional remedies, but Obaba has more than a dozen problem areas all at once.

Honestl, I wonder if he doesn't lay awake in bed some nights asking himself why the hell did he want THIS JOB at THIS TIME!

[dkf]

2. Nobody needs all the crap we were buying that makes our economy run.

Unless the rich want to spend and splurge people don't have inclination to waste money any more.

[lib2DaBone]

3. We could save $436 Million a day just by bringing the troops home..

Nation building begins at home.

[Lorien]

5. +1000.nt

[sabrina 1]

4. He should have put Robert Reich on his economic team.

And a few other Progressive economists, people who didn't have a conflict of interest regarding the people's money and how best to spend it. Or something to cover up.

But, we got the Goldman Sachs team and they, in the end, will always be loyal to Goldman Sachs.

[Lorien]

6. Agreed. nt

[laughingliberal]

7. +1000 nt