Arianna debated Wall Street Journal columnist Stephen Moore about the continuing jobs crisis and the state of the economy. Arianna argued that the initial stimulus had not been big enough, and we're seeing that play out now with persistently high unemployment. She also said it's imperative that we begin rebuilding our nation's aging infrastructure.
For more on the how the middle class is being battered and abandoned and what we can do about it, check out Arianna's new book, "Third World America."
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Arianna also appeared on CNN's What the Week to discuss Proposition 19 in California, which would legalize marijuana and allow local governments to regulate and tax it.
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http://RealNewsPost.com?n=ThinkDeep.34356
Did the stimulus failed? NO!
The stimulus is temporary because "the government can't make the private sector invest." The stimulus creates a self-reinforcing cycle because of the multiplier effects of induced private investment that generates jobs to make more and more people work, earn and spend.
The CBO in its recent testimony (Sept. 28, 2010) identified "temporary" policy actions (aka stimulus) which "would have a significant positive short-term effect on the economy and employment." All of which are consistent with what Obama is doing to fix the economy.
Unfortunately, we have a left hand vs. right hand situation. At the local and state levels, they are doing the opposite (and after receiving federal aid). As Ezra Klein said, the recent jobs report "isn't driven by census layoffs." Surely, these firings at local and state levels will have an impact on business.
Bottom line: the stimulus can only go so far to induce demand. But it is false to say that the stimulus only creates jobs while stimulus money is available. It is also false to say that the stimulus has failed when there is clear evidence of private sector job gains and when you have some in government (like the some states, the GOP and blue dog dems) still doing a hoover despite evidence to the contrary.
I hate to tell you but the whole point of globalization was to make the workers of the US "compete" with third world workers.The point was to drive wages down. The "captains of industry" have no allegiance to nationality. Maximizing profit is the only goal. That strategy has worked, since Reagan, to siphon middle class wealth to the ultra-rich.
All outsourced work can come back to our soil. It requires rewriting the rules of the game so that extreme wealth cannot be accumulated, wealth must be more evenly distributed. There must be a very robust middle class and very few lower class and the upper class must hold only a small percent of the wealth it now has. The rules must strongly favor local businesses and make off-shoring a strongly disagreeable option.
The road to hell is paved with good intentions...
Factory jobs cannot come back. I will try to make this very simple. Goods are sold on the global market and price is a main driver except for certain "brands" like Apple but few businesses can command price. When we have to pay American workers, many union workers in manufacturing, higher salaries it drives up our cost. When we offer to the consumers or businesses of the world or the U.S. they won't buy it due to price. Inventories grow, people get laid off. To survive businesses have to manufacture overseas. Nothing new about this.
I own a vehicle tracking business. To get a quality device in the U.S. to resale it take me $125-$160. I have gone to China, found a factory that will make the device to my specs, has the same quality and is half the price. My businesses love the lower price. My competitors hate it. What would you do?
Then you must agree, since the private sector is not creating jobs, the government must step in and build our country's infrastructure and support those folks whose jobs were sent overseas so that their manager can get his bonus.
Mahalo Ariana, Mahalo
A person gets easy money and credit. He decides that he wants to roll-up public libraries. Find some Ayn-Randian Tea Baggers to give you their library. Fire the staff. Hire part-time, cheap staff. Pocket millions. Raise your fees. Demand a tax cut! I'm so important and I've created so much wealth for myself. Watch the economy crash.