Republicans Just Dont Get It There is a reason why it has taken so long to emerge from the Great Recession. And the Republican leaders of the House and Senate with their new majorities exemplify why we have barely emerged from it. They just dont get it. Their policies that continue to distribute wealth upward harm not only economic growth, but our place in the world. We are no longer the worlds only economic powerhouse. They continue to attempt to downsize government and block regulations of any kind, including Dodd-Frank, when it was the lack of adequate regulation during Republican GW Bushs term that caused the financial meltdown and Great Recession. This is while the lack of government spending on basic public works projects has been a major drag on economic growth. There was a consequent output decline of more than 6 percent of GDP -- thats 6 percent of the now $16 trillion in goods and services that were never produced, while some 8 million workers lost their jobs causing incalculable damage to families and communities. Yet Republicans still intone the same rote messages that regulation of any kind is harmful. Republicans have fought almost every growth stimulus program, and tanked the economy to boot, with the debt ceiling debacle that shut down government and downgraded the government debt. Now they want to do it again with their new majorities. In an attempt to keep their diminishing power base, they restrict voters right, collective bargaining and oppose minimum wage programs of any kind that would increase household incomes. They believe supply stimulates demand, when it is exactly the opposite. The increasing demand for goods and services stimulates supply and profits, from increasing household incomes. So when they oppose raising the minimum wages and collective bargaining, they are literally restricting the growth of household incomes, and so growth. And the result is a very deflationary environment that becomes a vicious circle. Falling prices mean falling profits, meaning falling incomes and rising unemployment. Its as simple as that, yet Republicans dont seem to get it. It has also led to the greatest income and wealth inequality since 1928, and the last time we had a Great Depression.
Posted on: Sat, 22 Nov 2014 11:17:40 +0000
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