Deficit “super-committee” must focus on jobs too

Oregon Senator Jeff Merkley deserves praise for his effort to keep the focus on America’s job crisis. His suggestion that the Joint Select Committee on Deficit Reduction (aka the “super-committee”) request the Congressional Budget Office to score the committee’s proposals for not only their budgetary impact, but their impact on unemployment is brilliant in its simplicity.

If this were to happen, folks would be able to see the impact of the committee’s proposals on both the deficit and the labor market. They would also see the foolishness behind the deficit hawks’ repeated assertions, here, here, and here, that reducing the deficit will reduce unemployment.

The vast majority of across-the-spectrum respected economists, including my personal (non-EPI) favorite, Paul Krugman, have made the case quite convincingly over, and over, and over, that cutting spending in a time of high employment is the height of foolishness.

As for EPI, we said it here, and here, as well as plenty of other places. I’m convinced and I’m not even an economist. Here’s to hoping that we’ll see some common sense come out of the so-called super-committee.


  • http://www.facebook.com/profile.php?id=100001659804773 Martha A Bookreader

    I listen to the news every day and I hear the same old story about JOBS CREATION getting the deficit under control, and talk about whether or not the economy is going to rebound, or go into a double dip recession.

    What I don’t hear on the news, ever, is WHY so many people are out of work, WHY the deficit is out of control, and WHY the economy is in the state of collapse that it is in, has been in since September 18, 2008, and WHY we are looking at a double dip recession in the United States?

    From the time of Nixon to the present, those who own the United States Economy and those who run the U.S. Economy have been off shoring, out sourcing, and de-industrializing the U.S. Economy and replacing what has been off shored, outsourced, and de-industrialized with a Mercantile Economy based upon cheap foreign imports from China to create a Consumption Based Economy, based upon cheap Asian imports that are the product of surplus production of healthy Asian Economies, namely China.

    The U.S. Economy was strong before it was off shored, out sourced, and de-industrialized, because it was a Manufacturing Economy that produced for its own consumption, and exported its surplus; this type of REAL ECONOMIC ACTIVITY was productive of JOBS, real economic growth and vigor that gave the workforce of the U.S. Economy employment and produced value at all levels within the greater economy that drove the U.S. Economy in both foreign and domestic spheres.

    When the time came to re-industrialize the U.S. Economy, the choice was made by those who held the capital that was necessary to re-industrialize the U.S. Economy, that it was not necessary to re-industrialize the U.S. Economy, and chose instead to off shore, out source and de-industrialize in favor of a Financialized Mercantile Economy in the United States in pursuit of Short Term Profit from cheap Asian imports that were used to fuel a Financialized Mercantile Economy in the United States.

    Why on earth would anyone with intelligence past that of an earthworm, think that a Financialized Mercantile Economy in the United States would produce JOBS from Financial Transactions in the absence of Manufacturing Capacity?  

    And, why on earth would it be thought “borrow and spend” governance from the time of Nixon to the present in support of Wars and Re-Capitalization of FAILED Financialization Schemes at PUBLIC EXPENSE would not create a deficit, and that borrowing back Asian Trade Surpluses, namely from China, as well as other countries to pursue a multiplicity of Wars and Star Wars Programs from the time of Nixon to the present would not result in an out of control deficit, and a U.S. Economy without the strength to resolve the problem?

    If the problem is going to be seriously addressed, it CANNOT be done by the pretense and dream world solutions that are being advocated by political leadership in the United States and reported on the nightly news every night with Dream World Analysis and Solutions.

    At the present time, U.S. Corporations have a $2.5 TRILLION Capital Surplus that is more than sufficient to re-industrialize the U.S. Economy, a $2.5 trillion surplus that was re-capitalized at PUBLIC EXPENSE that is being hoarded for PRIVATE PURPOSE against the best interests of the United States and the U.S. Economy.

    If we here in the United States are serious about JOBS CREATION, getting the DEFICIT UNDER CONTROL, and creating a healthy vibrant U.S. Economy, we need to look at those who squandered away their capital in financialization schemes, had their capital bailed out and re-capitalized at PUBLIC EXPENSE, and are now hoarding $2.5 trillion of surplus capital, while at the same time complaining about the deficit, job creation, and a weak U.S. Economy.  

    It is unacceptable for those who have made the problem, that have been bailed out from the problem they made at PUBLIC EXPENSE, and that are now hoarding $2.5 trillion dollars of surplus capital to be looking to take even more from the communal resources of the people of the United States in pursuit of their own greedy private interest at PUBLIC EXPENSE.