Monday, August 5, 2013

Why regressives thwart job growth

Granted they are flat out wrong in their assumptions but they have them nonetheless. Robert Reich as usual lays it out plainly and simply why they hate job growth and why they are as usual wrong. No, they are not true but partial in the obfuscating and misguided jargon of kennilingus; they are wrong. Some excerpts:

"First, high unemployment keeps wages down. Workers who are worried about losing their jobs settle for whatever they can get -- which is why hourly earnings keep dropping. The median wage is now 4 percent lower than it was at the start of the recovery. Low wages help boost corporate profits, thereby keeping the regressives' corporate sponsors happy.

"Second, high unemployment fuels the bull market on Wall Street. That's because the Fed is committed to buying long-term bonds as long as unemployment remains high. This keeps bond yields low and pushes investors into equities -- which helps boosts executive pay and Wall Street commissions, thereby keeping regressives' financial sponsors happy.

"Third, high unemployment keeps most Americans economically fearful and financially insecure. This sets them up to believe regressive lies -- that their biggest worry should be that 'big government' will tax away the little they have and give it to 'undeserving' minorities; that they should support low taxes on corporations and wealthy "job creators;" and that new immigrants threaten their jobs.

"And to counter with three basic truths:

"First, the real job creators are consumers, and if average people don't have jobs or good wages this economy can't have a vigorous recovery.

"Second, the rich would do better with a smaller share of a rapidly-growing economy than their current big share of an economy that's hardly moving.

"Third, therefore everyone would benefit from higher taxes on the wealthy to finance public investments in roads, bridges, public transit, better schools, affordable higher education, and healthcare -- all of which will help the middle class and the poor, and generate more and better jobs."

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