While I can understand negotiating with Republicans in the short term to prevent a government shutdown, I fail to understand why the Obama Administration is not investing resources in educating Americans on basic economics. Those who are fighting for steep budget deficits need only understand that removing that spending from the economy has a negative multiplicative effect.
States forced to cut budgets by laying off workers and reduced spending at the same time the Federal Government is cutting spending is tantamount to the removal of billions in buying power from the economy. This will affect the local sandwich shop, car dealership, grocery store, etc. which will cause further private sector layoffs. These layoffs will produce even more layoffs until we are again forced into further deficit spending to assist the massive unemployment. This will put us in worst shape than a slow methodical decrease in spending over several years.
Many of those pushing this restrictive policy know exactly what they are doing. They know that the consequence of reducing government spending now will be an economic downturn. They know it will cause massive unemployment. Their goal is to keep America in a permanent state of low employment for the middle class in order to depress wages for their wealthy benefactors, the corporations, oligarchs, and plutocrats.
That the mainstream media is tepid in acknowledging this reality is unforgivable. That the mainstream media is tepid in acknowledging that the cuts affect solely the poor and middle class is unforgivable. That the left wing is beating up the President for his failure to effect better fiscal policy for the middle class as opposed to laying the path for the president to follow by educating Americans in a myriad of venues about how the economy really work is despicable. That all liberals have failed to metastasize in the middle classes’ minds that class warfare is being waged upon them is a major opportunity lost.
History has a tendency of repeating itself. During the Depression as the economy was recovering, the same types of premature cuts were instituted which brought the recovery to a stall and a precipitous dip. Not till the mother of all stimuli (World War II) did the economy recover for a substantial amount of time.
If Americans were given this information they would force their politicians to pass appropriate policies as opposed to repeating the mistakes of the past. What Republicans are forcing is the well-known tenet. Insanity is doing the same thing over and over while expecting a different result.
My Book: As I See It: Class Warfare The Only Resort To Right Wing Doom
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