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Lawrence Mishel

Lawrence Mishel

Posted: January 8, 2010 02:19 PM

Jobs: Aughts for Naught

What's Your Reaction:

When it comes to jobs, it turns out the aughts were for naught. Too bad we can't just party like it's 1999.

This morning the Labor Department issued its final monthly jobs report for the decade just ended. In December 2009, the economy shed 85,000 jobs and the unemployment rate held at 10.0 percent, but only because 661,000 people left the labor force.

So this report makes it official: The last decade was indeed a lost decade for job creation. We're beginning 2010 with just about 131 million jobs, only 129,000 more than at the beginning of the decade. This is despite the fact that the U.S. population has grown by roughly 25 million people since 2000.

As the Washington Post recently reported, the aughts' net zero job growth puts the decade in its own inauspicious category. In each of the six preceding decades, from the 1940's forward, job growth was 20 percent or higher.

It's important to note how we got here. Right-wing economic policies -- and remember that the right wing was in charge for eight of the past 10 years -- emphasized that government was the problem and the market always knew best.

Regulators sat on the sidelines while Wall Street gambled with Main Street's money, inflated an enormous housing bubble and marketed dangerous mortgages. The bubble popped with catastrophic consequences for millions of workers who had, in fact, played by the rules.

The Bush administration passed recklessly irresponsible tax cuts that further enriched the wealthy and handicapped our ability to make investments for a stronger economy -- investments in infrastructure, innovation, and education, which would have yielded dividends for all Americans for generations to come. The results were not only poor job growth but also the only business cycle where the typical working family had less income at the end than at the beginning -- as if recovery never happened.

Rather than attempt to reinvigorate American manufacturing, the right wing pushed for unfair trade deals that lacked protections for workers, forcing Americans to compete for their jobs with workers in countries that lack even basic labor standards.

Conservatives talk about the dignity of work; when they call for gutting the social safety net and workplace safety rules, they do it in the name of empowering more people to pull themselves up by their bootstraps and achieve economic independence. Yet right-wing economic policies gave us the worst decade for jobs since the 1930's.

The point here is not only to affix well-deserved blame. The more important point is to make sure we don't repeat the mistakes of the past. Yet the right wing, having overseen a disastrous decade for America's middle class, simply wants to double down on the failed policies that got us here.

Insanity, as Einstein put it, is doing the same thing over and over again and expecting different results. Viewed that way, the "job creation" proposals floated by House Republicans are truly insane. More deregulation. More unfair trade agreements. More tax cuts for rich people. That's why their respectful rhetoric about the value of work is plainly just talk.

But there is a dignity that can only be found in decent work. Everyone who wants a job ought to be able to find one -- a good one with benefits and a family -- supporting wage. That's why the jobs crisis is not only an economic crisis, it's a moral one.

After two and a half years of rising unemployment, it's time we put people back to work. The initial effort to generate jobs -- the recovery act -- is already helping. But the scale of the problem is much more than that legislation can overcome. We need to do more.

We should put people to work repairing and modernizing school buildings. We should put people to work serving their communities, doing important jobs like maintaining parks, operating emergency food programs, staffing early childhood education centers, and cleaning up the environment. We should provide assistance to states to prevent looming layoffs and stabilize services, which will save as many jobs in the private as in the public sector.

Because the private sector will not start creating jobs in sufficient numbers to make a real dent in unemployment, the jobs crisis will not recede on its own anytime soon. In fact, unemployment is expected to grow throughout 2010. That's why the government has to step in and take bold, aggressive steps to create jobs. The right question is not, as conservatives would frame it, whether government is too big or too small. It's whether government works. And right now it must.

 

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HUFFPOST SUPER USER
Alicia Westberry
college student & blogger
05:07 PM on 03/07/2010
Something surely needs to be done to increase jobs. Pride in American products also needs tobe promoted or restored. As long as goods that the American public needs or wants is made more cheaply in foreign countries, the jobs will go to those countries. That, in turn, will mean fewer jobs will stay in America for our citizens.
09:34 AM on 01/10/2010
Part Two:
that being noted, of course the author of the post above doesn't want late-stage American capitalism, and niether do I. That doesn't make us anti-capitalism - there is a spectrum of capitalist theories, and a spectrum of socialist theories, each spectrum is broad enough to incorporate theories from the other spectrum. We could if we wished enjoy a moderated capitalism by employing socialistic theories, or the reverse.
In less abstract terms, Mr. Mishel puts the mater quite succintly: "The right question is not, as conservatives would frame it, whether government is too big or too small. It's whether government works." And outside of the hot-house of Washington and its sycophant media, the truth is most Americans are really asking for that, a government that works, and are not very concerned with ideology.
Right now the government isn't working - hasn't been, really for 30 years. I don't know but that the damage done may be beyond repair. But, again, we will not be able to repair it until we face some hard facts.
One of these is that the Democrats pulled a con-job last year, and I fear Nader and Chomsky are right - we have one party with two factions, the Businessman's Party. We need therefore to organize some other political party or social movement outside the hot-house, and to work more actively for change.
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HUFFPOST SUPER USER
capitaldysfunction
White male never voted Republican
10:53 PM on 01/10/2010
Its refreshing to see someone (yourself) venture an overview and analysis not entrapped in ideology and its dead ideas. Yes, as long as Obama sticks with Geithner and Summers we have indeed been bamboozled by a Chicago con man. Ending corporate ownership of government is hard when the entities involved benefit through their own self-aggrandizement. Start with the most dysfunctional and lethargic parts of government: the U.S. Senate. End the filibuster or ameliorate it (55 votes instead of 60). Then change the makeup of the Supreme Court since they will rule on corporate personhood or limits on corporate contributions to political campaigns. Liberal Presidents appointing good SC nominees is one approach. FDR's proposed 15 member SC is another. Finally, public financing of political campaigns.
Our disagreement would be in the area of third political parties. Multiple political parties splintered the left in Canada and elected a Conservitive Prime Minister with 30% of the vote. Historically, third parties have proven to be too expensive and unsuccessful in the U.S.
I'm not certain any of these changes can be enacted, or that anything will work short of revolution. But revolution is war, so we have to try.
09:23 AM on 01/10/2010
Part One:
And now we have another President practicing Reaganomics.
The trouble with "trickle-down" theory is that for it to work, most of us need to be in the lower classes so that wealth can trickle-down on us at the elite's liesure. Which by the way is consistent with Calvinist social theory (since most of us are not among God's elect).
To put it bluntly - most Americans are SUPPOSED to be poor, that's how our now highly developed American capitalism works. (The 'pulling yourself up by your boot-straps" days are now long past - that was an era where innovation and hard work helped determined who the new aristocrats were to become - but now they ARE, there isn't any 'becoming' anymore.)
Can we change? sure. But not unless we dispel the myths and see the ideology for what it really means - 10% of the population enjoying 90% of the wealth, high unemployment rates, low-wage jobs, millions enslaved by debt, government by corporations, crumbling infrastructures - these are all part of the package, they're not excesses or abberrations. You want late-stage American capitalism? - you got it!
03:59 AM on 01/10/2010
like the rest of the obama0 propaganda machine, we had 9 good years and one terrible year and they want to blame President Bush. obama0's marxism is the culprity. government can't create jobs, only the privatte sector can do that and obama0 has done everything he can to gum up the works.
08:59 AM on 01/10/2010
Thanks for today's big belly laugh! LOL!
04:49 AM on 01/13/2010
ewego, DO YOUR HOMEWORK: We did not have "9 good years and one terrible year." The sad reality is that Bush cut taxes @ a cost of $1.7 trillion promising a "trickle down of jobs" to the middle class only to deliver the worst job creation record in history: 375K jobs a year. Compare that to Clinton's 2.9 million jobs a year , or Carter's 2.6 million, or Johnson's 2.6million, or Reagan's 2 million, or Nixon's 1.9 million. In BUSH'S final year in office, the economy SHED a total of 2.8 million jobs (1.9 million of them in the last 4 months). And WHILE Bush was delivering that abysmal jobs record, he was also ignoring the subprime crisis until it morphed into the banking crisis, presiding over the collapse of the Dow as it slid from14K-8K, spending like a drunken sailor & doubling the Nat'l Debt from $5.7-10.6 trillion. You CANNOT lay this at Obama's door. Why won't you people recognize -- this is not a game of "gotcha". This is about recognizing where we made the mistakes and correcting them. We can't do that if you won't even admit that the Bush economic policies FAILED and we are all SUFFERING for it.
07:43 PM on 01/09/2010
...and the culprit is: FREE TRADE !

Neither the republicans, nor the democrats under Obama, address what these trade pacts have done to middle class America. Every election it seems we are simply not given anti-free-trade candidates who we could vote for. So we continue to vote "the lesser of two evils"...and look where that's got us.

There's a few, but just a few, good guys screaming against these agreements and they come from BOTH political camps: Lou Dobbs, Pat Buchanan, Ron Paul, Ralph Nader, Dennis Kucinich: BUT WE HAVE TO VOTE THESE GUYS IN. Ralph Nader said along time ago, that on every ballot in every election there should be a choice to vote for: "None of the Above", and new candidates would need to be found when most people checked off this option on a ballot. I just fear that without a safety valve like this that Nader is talking about, we will forever vote for the "lesser of two evils" and find ourselves in continually more dismal circumstances with each decade that passes.
Giftedroot
A forest from one root.
04:05 PM on 01/09/2010
It's frightening to know that 661,000 people are so discouraged by the inability to find jobs that they have completely given up searching for jobs. That doesn't even include the numbers of people searching for jobs.
HUFFPOST SUPER USER
Cosatjockomo
12:35 PM on 01/09/2010
The right wing had the presidency for 28 of the last 30 years. When it comes to lase fair Clinton was as right wing as any of the Republicans. But during most of that time, the right wingers were not in control of the legislature. So there must have been a consensus and both parties are to blame. Don't look to either for help in the future. They both use the average American as tools.
06:15 PM on 01/09/2010
I don't agree with you. I believe that the Democratic Party, although not perfect, is more for the little guy than the Republicans are. The right wingers were in charge of the legislative branch since 1994 thru to 2008. They certainly didn't do a good job.
12:21 PM on 01/09/2010
This is a uniquely myopic post.

You disparage Bush without recognizing the destruction caused by Clinton (NAFTA, MFN for China, normalized relations with Vietnam, repealed Glass-Stengal).

You assign blame to conservatives but never consider the American peoples' bloodlust for cheap Chinese 'stuff'.

It's elementary Watson ---
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RedneckDem
The top 1% stole my made in china bootstraps
12:41 PM on 01/09/2010
Would the points he made be any less clear if he included Clinton? I wish he would have included the bad decisions by Clinton, but that by no means should blur the point of the article.
07:08 PM on 01/09/2010
I buy cheap Chinese stuff because I can't afford anything more costly. Perhaps it is the the same with other people whose income has not grown but the cost of food and clothing has.
HUFFPOST SUPER USER
duckfan00
Après nous le deluge
11:59 AM on 01/09/2010
This is the main reason why the corporatists and Wall Streeters(CNBC) want to tear down the Obama administration and put the jobs disaster (and it is more detrimental than Katrina) squarely on Obama....They have all their attack dogs Giuliani, Pataki ,Matalin, Cheney and of course Faux News blasting away everyday at President Obama...If they succeed and defeat Obama in 2012 we will have the worst economic times that we will ever see in our lifetimes....The redistribution of wealth that occurred this past year with the likes of the bailouts was just the beginning for these financial corporatists...The $750,000 bonuses to each Goldman associate was to these corporatists justified...after all they work harder and are smarter than most Americans....right???
06:17 PM on 01/09/2010
My parents lived through the Great Depression. It took years to get over it. Why is that the American people think that President Obama can work miracles in a year? If the Republicans go back in, we will be in bad shape. I doubt the country would survive.
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JohnBryansFontaine
Liberal Democrat
10:40 AM on 01/09/2010
In addition, the media/corporate complex spent way too much coverage on sideshows such celebrities and gay marriage and too little on jobs.
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HUFFPOST SUPER USER
TN60
I Hope You'll Dance
06:12 AM on 01/09/2010
Insane...Insanity....

Are we really so insane, that we would re-elect the same cast of characters, again? We would re-elect the ones who brought this country to its knees? A decade of no job growth ??? Wow, what a talking point.

Maybe someone should tell those pollsters, the Republican party crowing maniacs, the power hungry Republican analysts that America is NOT insane.

In fact that would be a great (D) political AD....."Are you insane??? Check off the blocks that tells you whether you are insane or not.

Or....what about this one....Name one single solitarty thing Republicans have every done for the middle class.....or the poor or disadvantaged.. Can't think of one ? Not one ??? Really ???

You are welcome, Dem strategists, for my take.
10:17 PM on 01/08/2010
No real living wage jobs are possible in the US as long as we continue to allow foreign made goods to flood our markets. Returning to the manufacturing of yesterday is possible, but it will take the political will to do so. When we the people storm the ports, railroads, and truck terminals with force, then and only then will Wall Street and the pay to play congress listen to our demands.

As soon as the Berlin Wall fell, so did "responsible" capitalism, and what took it's place could best be described as "predatory" capitalism. Under the new regime, you get what you're willing to fight for - period. What ever it is that the working class wants will have to be fought for in the streets, not Washington. Social darwinism came in with llaissez faire.
11:04 PM on 01/09/2010
Bravely spoken like a good revolutionary! Down with capitalism, yeah that's the ticket. You probably think the government creates all the jobs too, huh JoBangles? Do you seriously propose that the "responsible capitalism" of East Berlin BEFORE the wall fell is a desirable thing for America? Gosh, where do I sign up? ...not.
09:00 PM on 01/08/2010
Also, not mentioned is that NAFTA and industrial America's migration to China began in the 90's, during the Clinton era, same as the dismantling of the Glass-Stegel Act. Not to diss that decade or Clinton, but to remind that it hardly matters which party's in office.... financial and corporate oligarchs are running this puppet show of a republic.
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HUFFPOST SUPER USER
TN60
I Hope You'll Dance
06:00 AM on 01/09/2010
Glass- Stegall was already in tatters before Clinton. The final nail was on Clinton's watch, although it was already a headless entity. The trade policies can be attributed to Clinton. However, it was Republican rule 1994-2006 and 8 year of Bush who so decimated this country that it all came crashing down in Oct/2008 before Bush could ride off in the sunset. Then his Treasury Sec. gave out a cool Trillion to Wall St. without any accountability and the rest is history.

I say it does matter which party is in office. The Dems gave us Social Security, Medicare, Civil Rights, and a whole host of vary degrees of important legislations.

What have the Republicans ever done for us ????? Taxes breaks for the elite, anyone???
06:18 PM on 01/09/2010
Thank you for your comments. I agree.
06:32 AM on 01/09/2010
muhair - that's it in a nutshell.
Paul Craig Roberts has beeen saying this for years.
08:54 PM on 01/08/2010
The jobs recommended here are largely makework. Most federal departments participate in an excellent program called SBIR -- small business innovation and research -- that grant-funds small businesses with innovative proposals, providing them, in essence, with free venture capital. The results of this program are contributive new products and technology -- with green tech and sustainability a major focus -- along with business expansion and job creation. I know. I have such a grant. This program should be greatly expanded if government-sponsored growth of the real economy, the private sector, is sought. And who can argue against that....
07:11 PM on 01/09/2010
There is nothing wrong with quick makework to keep people employed until better jobs are available.
08:53 PM on 01/08/2010
Eliminate both parties, cut representative pay, take all retirement from representatives, present, & past, lobbyist first, & repay Social Security with that $. Take campaign finance retroatcive to 2000, don't just take governmnet away from corporate, banks, insurance agri corruption, defense, but make them pay while we do, & we'll start to see the light.

www.nextrevolution.net

People need to quit whimpering, be loud & abusive all together. If everybody put their name on one site so the message is sent is isn't scattered, two parties blaming the other, or weak, we'll be sending a message. This puny bend me over message on blogs no doubt have polticians laughing & nothing will change.

We'd still be in Vietnam if the people who were demonstating then weren't any more forcefull then tea parties whimps now. Tea parties are a joke, in Idaho it's all republican so there is no way the support is there. The United States is divided, we can't win a war against terror when we're fighting each other as both parties have US so they don't lose $ & control. Contributors don't want more parties or they'll have to buy more politicians, & pay millions more.

Do banks & insurance, care if you're republcian or democrat when they foreclose? NO, they don't discrminate, they'll take your home, & we bailed these crooks out? People are being misled, told they'll keep their homes, keep paying the mortgage while the bank finds a buyer then kicks them out, & we aren't