If recent commentary is to be taken at face value, IMHO, it may be said that a quickly-growing consensus among Democrats and many economists, both in the center (the real center -- not those seeking a bipartisan consensus with the far right; and thus ending up with a right-of-center "solution" which those in the center-right of our political spectrum will then attempt to shove down our throats) and on the left, is gaining more traction by the day. It is thus: If our party's going to perform well in the 2012 election cycle, it's time we started ignoring the fear-mongering, economic terrorists on the far-right, which is concurrently eminating from our nation's elite, and that we collectively maintain a focus upon more job creation.
Early Friday, I posted a diary about Paul Krugman's latest commentary and the outright economic terrorism that continues to be perpetrated by the status quo against our country's and the world's underclasses. In his op-ed in Saturday's NY Times, columnist Charles Blow also picked up on this economic terrorism theme where Krugman left off, in "The Bin Laden Bounce."
The Bin Laden Bounce
By CHARLES M. BLOW
New York Times
May 7, 2011
Osama goes down. Obama ticks up. That’s the narrative of the killing of Osama bin Laden and the lift in the polls for President Obama in its aftermath. In fact, a New York Times/CBS News poll conducted after Bin Laden was killed found an 11-point jump in the president’s approval rating.
But the event and its effect are likely fleeting moments in our memories.
First, the same poll found that the president’s approval rating on the economy dropped to its lowest level of his presidency.
It is a sobering reminder that terror for most Americans is no longer embodied in a bearded man hiding in Pakistan. It manifests daily in thoughts of not having enough to feed a family or fill a tank and in worrying about losing a job or a house...
Bold type is diarist's emphasis.
Blow concludes...
...This uptick for Obama is likely temporary. What will matter most as we enter the campaign season is the jobs picture, the public’s level of engagement and an avalanche of ads.
The inconvenient truths about our economy, today, by far and away, tell us that efforts taken to date will -- more than likely -- not ameliorate oue nation's economic problems significantly enough by mid-2012 for it not to be the major issue of the upcoming presidential election cycle.
Friday's BLS' employment situation report and the latest unemployment insurance claims reports reinforce this truth, as they indicate that quality job growth is not proceeding at a great enough clip to eclipse ongoing negative pressures in the marketplace anytime soon.
Right now we are faced with...
-- Record breaking income inequality between our nation's haves and have-nots
-- With the above-mentioned income inequality issues being further exacerbated by a two-track and quite wageless recovery which is becoming more self-evident and palpable, by the day, to many on Main Street
-- A housing market that is projected to decline, by many, another 10% for calendar year 2011
-- Long-term unemployment and unacceptably high, ongoing jobless rates which are now morphing what was considered an acknowledged fiscal problem (by many) into a much more debilitating, long-term structural nightmare
-- A focus upon fear-mongering by our nation's status quo concerning our budget deficits and inflation--and, yes, these imaginary fires are very much fed by some of our more corporatocratic, new Democrats, as well
-- And, while we're at it, if we're really intent, as a Party, upon doing something about the ongoing effort by our nation's status quo to consolidate their power, we better start taking more substantive action to hold "the powers that be" truly accountable for their transgressions against our society, as opposed to misdirecting the public's focus upon inconsequential stories such as THIS, from the past week, while Democrats simultaneously negotiate away what little substance remains in the Dodd-Frank legislation, specifically as it relates to the establishment of the Consumer Financial Protection Bureau (scheduled to open up for business over the next 60 days).
Krugman covers this last bullet point quite politely in Monday's NY Times, in "The Unwisdom of Elites."
The Unwisdom of Elites
By PAUL KRUGMAN
NY Times
May 9, 2011
The past three years have been a disaster for most Western economies. The United States has mass long-term unemployment for the first time since the 1930s. Meanwhile, Europe’s single currency is coming apart at the seams. How did it all go so wrong?
Well, what I’ve been hearing with growing frequency from members of the policy elite — self-appointed wise men, officials, and pundits in good standing — is the claim that it’s mostly the public’s fault. The idea is that we got into this mess because voters wanted something for nothing, and weak-minded politicians catered to the electorate’s foolishness.
So this seems like a good time to point out that this blame-the-public view isn’t just self-serving, it’s dead wrong.
The fact is that what we’re experiencing right now is a top-down disaster...
...
...But the larger answer, I’d argue, is that by making up stories about our current predicament that absolve the people who put us here there, we cut off any chance to learn from the crisis. We need to place the blame where it belongs, to chasten our policy elites. Otherwise, they’ll do even more damage in the years ahead.
Perhaps summing it up best these past few days, along with Krugman (on Friday) and Blow (on Saturday) in the New York Times, were economists Dean Baker and Mark Thoma, from the Center for Economic and Policy Research and the University of Oregon, respectively, who completely called out--if not downright eviscerated--the idiocy from the right as it was detailed in a truly lame and grossly misinforming editorial in Saturday's Washington Post.
Thoma on Baker's commentary: "'We Dare Not Let This Happen' (But Don't Support Doing Anything About It)."
Dean Baker is frustrated with a Washington Post editorial telling the public there's nothing we can do about the unemployment problem, a problem it cannot even characterize correctly (see Dean on this point). Me too.
The editorial starts by noting that:
...unemployment remains well above what it should be; the longer this persists, the more we risk a “new normal” of structural unemployment, which is a fancy term for elevated human suffering and snowballing economic waste. We dare not let this happen. The question, though, is how to generate the new jobs...
We dare not let that happen! We need to do something! Unless, according to the editorial, fear of what might happen if we try to help the unemployed gets in the way.
As Thoma notes, Baker points out that the WaPo editorial rules out fiscal policy and monetary policy as viable solutions to the problem.
Baker tells us that the fear-mongering, as far as fiscal policy is concerned, is that we'll trigger the wrath of the bond gods; and, by spending more government funds on job creation, interest on our nation's debt will explode. However, we're reminded that the truth is the interest rate on our government's 10-year Treasury notes is currently at 3.14%, which is lower than during "the budget surplus days of the late 90s."
And, as far as sparking inflation is concerned, there is no concern, Thoma points to economist Greg Mankiw who concurs with Krugman's latest commentary (see links above), who reminds us that...
"...the price of labor does not show any significant inflationary pressures right now," and hence there is little to worry about in terms of inflation (and other signs of inflation are absent as well).
In his concluding commentary, Thoma notes that the WaPo is telling us we must rely on increased exports. Baker reminds us it's not about exports; it's net exports (exports minus imports, month over month); and as a personal comment, I'll add that with the price of oil behaving in a very volatile manner, the truth is the U.S. maintains very little control over that.
Additionally, while it's not here yet, peak oil IS just around the corner, and many economic prognosticators are saying the most-recent downswing in oil prices (over the past few days) is merely a temporary condition, with prices expected to move back upward in coming weeks/months. (So much for "net" exports.)
Thoma points out that the WaPo refers to this as a "promising strategy."
Summing it all up, the final commentary glaringly tells us what a crock of crap the WaPo's putting forth, as they speak out of both sides of their mouth, telling us: if we let unemployment/long-term joblessness persist, it will quickly morph into a structural issue.
The WaPo editorials advice: patience!
Think about it! The WaPo's telling us, on the one hand, to fear long-term, structural unemployment; then, on the other hand, they're telling us to sit back and let it freakin' happen!
That, ladies and gentlemen, is pure, unadulterated bullshit.
Thoma's closing commentary...
A sense of urgency to do what? With both fiscal and monetary policy off the table, what, exactly, is the government supposed to do? Apparently, the millions and millions of people who are unemployed, some of whom won't be reemployed until years from now if we do nothing to help, are supposed to be patient because people with power over policy are worried about inflation and higher interest rates. But there's no evidence of these problems in the data, and if the problem is truly urgent -- and I agree it is -- then we need to take action. Yes, there are risks. I don't think they are large, but both inflation and interest rates could go higher as a result of more active policy. However, our willingness to take those risks depends upon who will be hurt if these problems do emerge (hint, it's not the unemployed) versus how much we care -- how much urgency there is -- about the unemployment problem. I think the potential benefits of trying to do something exceed the costs by a safe margin. But unfortunately for those who are told to be patient for a few more years why the economy works this out, the people with the power to set policy do not agree.
Yes, if our economic terrorists have their way, we're just supposed to sit back and let this trainwreck continue to happen...or, we can ignore that bullshit and push for more--much more--job creation and kick ass in 2012.
On Thursday, Kossacks jamess and davej posted a couple of excellent diaries on what Democrats are up to as far as job creation is concerned, HERE, and HERE, respectively. Check them out. Support these initiatives. Winning in 2012 means creating jobs.
Either we let rightwing terrorism and fear-mongering win, or we vanquish it once and for all.
It is that simple.