Tuesday, May 20, 2008

It's the Economy, Stupid!

Jared Bernstein has written a couple of good pieces on the failures of conservative economics and the need for a more fair economy. Check 'em out...

This one is an excerpt from his book and touches on what he calls the YOYO (you're on your own) economy.

One central goal of the YOYO movement is to continue and even accelerate the trend toward shifting economic risks from the government and the nation’s corporations onto individuals and their families. You can see this intention beneath the surface of almost every recent conservative initiative: Social Security privatization, personal accounts for health care (the so-called Health Savings Accounts), attacks on labor market regulations, and the perpetual crusade to slash the government’s revenue through regressive tax cuts — a strategy explicitly tagged as “starving the beast” — and block the government from playing a useful role in our economic lives. ...

... At the heart of the WITT (we're in this together) agenda is the belief that we can wield the tools of government to build a more just society, one that preserves individualist values while ensuring that the prosperity we generate is equitably shared. Importantly, under the WITT agenda, this outcome occurs not through redistributionist Robin Hood schemes, but through creating an economic architecture that reconnects our strong, flexible economy to the living standards of all, not just to the residents of the penthouse. As the pie grows, all the bakers get bigger slices ...

This one focuses on the failure of conservative economics and the prospects for a different path forward. In this piece, he concludes:

So there you have it: the great, neo-con economic experiment is over and the results are in. Outside of the top 1%, there's less income growth than in any past business cycle. The key macro-indicators, such as employment, GDP growth, and investment have also faired uniquely poorly. The anti-government, deregulatory agenda has led to fatal incompetence, a massive housing bubble, ailing global credit markets, and near-recessionary growth for the US. The "ownership society" is a cruel joke: homeownership rates are falling for the first time in decades.

The defenders of the status quo will howl in protest: the Democrats blocked us, the terrorist attacks and the war changed everything, we must stay the course to victory! But such rhetoric should be dismissed as what it is: the last, desperate gasps of a dying movement.

They've had their turn and they've failed. It is our turn now.

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