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View Diary: Robert Reich's Pesky Facts Boggle CNN's "Crossfire" Host S.E. Cupp (123 comments)

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  •  She got supply and demand backwards (0+ / 0-)

    I'm sure Cupp was fed her talking points.  

    She said "the demand for jobs is greater than the supply of jobs," implying (as all Republicans do) that to boost the economy, we need to give more money and tax-breaks to employers, so that they can "supply" jobs.  Republicans always frame the issue so that they can argue for more "supply."  

    But she's got it backwards.  When a buyer has too much money and a seller has too little product, you don't call it a "supply-side" economy.  Properly, "supply" shouldn't refer to the money, it should refer to the product that money can buy -- in this case labor, not jobs. When it comes to labor, it boggles the issue to say "jobs are in short supply."

    In our economy, it is labor that is in over-supply, just like everything else in the economy.  Too much supply; not enough demand.  People aren't buying enough.  The only way to get labor back to work is to increase demand, and employers won't demand workers until they start selling stuff. The only way to do this is to give money to the people who actually buy things (stuff!, products!) rather than funneling it back into an investment portfolio.  Upping the minimum wage is a basic way to achieve that.  

    But, of course, Republicans are hooked on the idea that supply-side economics solves everything.  Right now, the U.S. needs the opposite approach.  

    p.s. I do realize there are terms like "money supply," but that is way out of Cupp's ballpark.  

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