We touched on this briefly yesterday, but Federal Reserve Chairman Ben Bernanke once again presented Washington with some common-sense Keynesian economics yesterday, which once again fell on deaf ears.
Bernanke covered quite a bit of ground over the course of 45 minutes, but in terms of political salience, the comments that were of particular interest were the Fed chairman's complaints about "fiscal restraint at the federal, state and local levels," which he said undermines economic growth.
"[W]e have been seeing fiscal consolidation, particularly at the state and local level, of course, tight budgets have led to a lot of layoffs and cancellation of projects and so on.
"I understand that these are necessary steps from the perspective of individual states and localities; I'm not criticizing that. It's just a fact, though, that these contractions are affecting the pace of growth in the broader economy."
Remember, Republicans, from Mitt Romney to every GOP member of Congress, think this is backwards. Bernanke is trying to make them understand that taking money out of the economy and laying off public-sector workers makes the economy worse, but when the economy gets worse, Republicans blame Obama and call once again for taking money out of the economy and laying off public-sector workers.
We could lower unemployment dramatically today if Congress took Bernanke's advice, but in the eyes of today's GOP, the Republican Fed Chairman, first appointed by Bush/Cheney, is calling for big-government socialism that undermines free enterprise.
The Fed chairman added, by the way, "[M]onetary policy is not a panacea. Monetary policy by itself is not going to solve our economic problems. We welcome help and support from any other part of the government, from other economic policymakers. So collaboration would be great."
This isn't exactly subtle -- Bernanke has been pleading with Congress for two years to consider fiscal stimulus, but Republicans refuse. Then, as the economy slows, they once again blame the president and start the process over again.
Bernanke's reluctance to take bold steps is a constant source of frustration, which may well cost Obama his presidency, but that doesn't change the fact that today's Republican Party still makes him look like a wild-eyed liberal by comparison.
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Bernanke is interfering with the GOP's agenda of making the President look bad. Now, this is back firing on them and they are looking pretty bad like a bunch of lazy, non-workers sitting back and collecting a check from the government that is what the Republicans are doing they are collecting Welfare from the American People in the form of tax dollars. I wish someone would tell them that their Vacation is over and to get back to work. Maybe this time they could help us out here by lowering the cost of living and stop holding us hostage. Do they think they can do nothing and get paid. What are they waiting for? Surely, they must consider doing something besides getting rid of our beloved President Obama?
Right, a couple hundred billion blown on a payroll tax cut has moved the needle how much? Not at all. Would somebody like to explain how twenty bucks a week/paycheck was supposed to inspire business to hire?
When the country is hoarding it's money for fear of the future, stimulus of either kind is useless.
No what is useless is giving tax cuts to billionaires to hide in off shore accounts. Giving workers an extra $20 in their wallets will make the worker spend it which means demand goes up and when demand gets higher then supplies the business has to hire more workers to meet demand. Your problem is you believe in the Reagan trickle down magic nonsense. The ideal is that having more money businesses will hire more except that hasn't worked in 34 years that the GOP have used it. What has happened in those GOP years is deficit spending because not enough taxes are collected to cover GOP spending. Businesses then start laying off workers because they don't need workers to keep profits up, meaning less tax dollars coming in. Which then leads to stock market crashes and an economic nightmare because consumers stop consuming and start living within their means. What Reagan forgot to tell you tea bagged republicans was for his economic plan to work people had to have credit to buy stuff, when the credit dries up the whole house of cards comes crashing down.
Here's a clue:
When people at the bottom have more money, they spend it.
When people at the top have more money, they hoard it.
When people at the bottom spend money, the people at the top profit.
That is why stimulus works.
You are welcome for the basic economics lesson.
Right. The steel industry will magically hire more people because you get an extra twenty. No it won't. As for trickle down, that is exactly how it works and you can see it in action every day in front of the Home Depot.
The unemployed gather everyday, waiting for someone to arrive with an idea, and the money to pursue it, needing help. It apples to day laborers all the way up to rocket scientists. Any questions?
You have a limited picture there. That money is also spread over thousand of businesses. Nobody is getting rich off $20 a week. Plus every business owner knows it's temporary. It isn't worth hiring anyone.
The payroll cut has been in effect for over a year now, where's that tsunami of demand you've predicted?
An extra twenty to some means a meal or medicine or enough gas to get to work. To Romney ten thousand is chump change to be tossed around as a bet. 'Nuff said?
The question remains, where is that tsunami of demand?
Ah people are making the same wages as they did in 1979 while the cost of living has increased 400% since 1979. You can't fix the problem by ignoring the fact that all those tax cuts to the wealthy were paid for by the middle class who got an empty promise that if they worked hard they too would be wealthy and need those tax cuts.
The demand is for Peace and fairness. The demand is for nutritional foods and decent living conditions. The demand is for human dignity our God-given right. We can create thousands of jobs following that simple rule. Treat others how you would have them treat you. I'm ready to start planting seeds all over this Beautiful world.
Bull-@!$%# is bull-@!$%# no matter how its' wrapped.
Institute a one day a month national "bring your gun to work day". The initial fatality rate may be a bit high but everyone at work and on the roads would quickly learn to be a lot nicer. Most of the original causalities would probably be the meanest, nastiest, most rotten people. The few nice people shot would provide much needed job opening. Gun sales and funeral services would have a surge in business, the unemployment rate would nose dive; prosperity and civility would return.
???? Perhaps you're not aware that gun sales are at all time record levels, not even counting the ones to drug cartels?
http://abcnews.go.com/Business/gun-sales-booming-doomsday-obama-zombies/story?id=16073797#.T-MpF_WwX-s
Interestingly, crime rates are going down too.
Hi Shooter didn't mean to interrupt. Highlander, you were kidding right or is it how you say snark?
"...calling for big-government socialism that undermines free enterprise."
Can we stop pretending what's been happening is "FREE ENTERPRISE". See "FREE ENTERPRISE" forced US to bail out Wall St. - and even as they're sitting on "our money" they're still foreclosing, fighting re-regulation, and they're still gambling - it is WE the PEOPLE that are paying for their selfishness! Every time I hear a politician talk about "FREE Enterprise" I am disgusted because I know that they are not talking about that "little" independent grocery store/barber shop/cleaners - they're referring to Wal-Mart/Home Depot/Wall St. banksters/your big box name here with their lavish tax loopholes and WELFARE!
The GOP (the DINO's) has proven over and over and over that they do not represent WE the PEOPLE; democrats have proven to be pretty spineless, and the 1% have proven that avarice and money trump good, morality and our democracy! FREE ENTERPRISE is only FREE for the 1%, it's the rest of US picking up and paying the tab!
And why have the democrats been spineless? Could it be that the people who elected them start whining whenever the GOP starts in with their trickle down nonsense or whine when government shuts down because democrats took a stand or how about the GOP talking points have the country so confused that often democrats get their hands tied. See unlike the GOP democrats depend on voters not billionaire sugar daddies like the GOP have. Maybe if people would get educated they wouldn't be so easy to fool with GOP nonsense.
Darlin, you're preaching to the choir. I try to stay educated on the issues, I contact my representative both state and federal level, and I try to explain what I know to those who show themselves to be confused both dems & GOTP!
And as Big Momma always said - the truth and doing the right thing may not always be popular, but they keep your conscious clear and allow you to sleep at night! Democrats used to stand up, but quite a few have "gotten their hands dirty" or they come from "red states" and feel they must tack farther to the right and WE all keep silent - to our own detriment! The time has come for US to roar so that they hear US and fear US and remember that they really do WORK FOR US!
It's only your money if you earn it. If someone else earns it its their money not yours.
What a bunch of looser on this site moaning about how someone else made a buck and now they can't have that buck. Get to work and make your own buck.