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View Diary: Structural Stupidity on PBS, Debunked by Krugman and Baker (123 comments)

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  •  "Structural" is overused (5+ / 0-)

    In this case the intended use is Labor Skills. This is not the problem. Somehow in 2006 everyone had the right skills and now they don't. This is nothing more than Right Wing rationalization for a collapsed economy, read Investment Banking. Sure, blame it on the skill set of the work force. One can only marvel at the chutzpah of the Right.

    The structural problem is that US Labor has lost the war. Although GDP per capita has doubled since 1970, median income has remained almost flat (16% growth). Take the growth in the economy and distribute it fairly and you have few problems in employment, income, wealth, and debt.

    I maintain that distribution of income is totally arbitrary. You can have a society with a healthy middle class or one of extreme wealth and extreme poverty. Supposedly the market determines wages, however by off-shoring our manufacturing economy we are making third world labor force as one with our domestic labor force. We have done everything possible to kill the American Dream.

    We had a choice. Scenario B is where we erect barriers at the border in 1970 and instead we concentrate on using technology and infrastructure to increase the productivity of labor. We reach today with a GDP much higher, median income more than twice today's, no depression and manageable consumer debt. The problem is that we never had a choice, the ideologues and the Right Wing Economists pushed the meme that all trade was good and any way of making profits was good regardless of its economic or social consequences.

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