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Rev. Jesse Jackson

Rev. Jesse Jackson

Posted: March 22, 2011 12:41 PM

Stale Economic Ideas Fueling U.S. Troubles


Tsunami, earthquake and nuclear horror in Japan. Revolution throughout the Middle East. Grim austerity in much of Europe. America scarred by 25 million people in need of full-time work, and by pressure on wages and benefits. In Egypt, the unemployment of one in four young people led directly to the uprising. In the United States, unemployment among young people nears that level.

We live in troubled times.

In America, we learn how corporate corruption and government timidity delayed action on the nuclear plants in Japan, worsening the crisis and putting lives at risk. But aren't we in this country facing our own tsunami choice? We're in crisis. Fundamental changes are needed. Yet both parties in Washington seem divorced from the reality that faces us. Both seem to assume there is a recovery and are turning to how much to cut from the federal budget. Both seem to assume that America can go back to the economy that we had before the Great Recession.

But for working families, there is little sign of a recovery. Jobs are still scarce; homes are still underwater and being foreclosed upon; wages and benefits are still being cut, and vital public services are being dismantled.

Our old economy cannot -- and should not -- be recovered. It was built on unsustainable disparities such as record trade deficits, Gilded Age inequality and a declining middle class. Wall Street's bubbles overwhelmed the real economy.

If we are to rebuild a strong economy with a broad middle class and the opportunity for all to participate in its widely shared blessings, then wrenching and fundamental changes are needed. Consider even a partial list:

We must transform our energy system, for global warming is accelerating faster than even the alarmists predicted. This requires a bold strategy for building solar and wind energy, deciding about nuclear power, retrofitting homes and buildings, transforming our transportation system and much more. Yet, in Washington, denial dominates the Republicans in the House. The result is that little progress is being made.

We must rebuild our ability to make things in America, and dramatically change our global strategy. That will require unilateral steps at home and an intense global dialogue to reduce imbalances that all agree can't be sustained. Yet, Washington is repackaging old trade accords, ignoring ever more aggressive Chinese mercantilism and watching as the trade deficit begins to rise again.

We must empower workers to capture a fair share of the profits and productivity they produce. Without a broad middle class, there is neither sufficient demand to make the economy work nor sufficient revenue to support vital government services. Yet in Washington, the debate focuses on lowering top tax rates even more, and on protecting tax breaks to the richest Americans.

Instead of debating ways to empower workers, Republican governors across the country are leading an attack designed to strip workers of their basic rights to bargain collectively.

We must fix our health care system or it will bankrupt everything. Yet, House Republicans argue only for repealing the reforms that began to curb the excesses of the insurance companies that drive up prices.

We need a clear strategy for moving to full employment. The largest and most diverse generation in American history is graduating into the worst jobs market since the Great Depression. We cannot afford to squander their talent, their energy and their hopes. And yet, in Washington, their plight is simply ignored.

There is more -- spending less policing the world in order to rebuild America, curbing the big banks, revitalizing our schools, sensibly getting our books in order. But it is as if we are in an old movie house with a broken projector endlessly repeating the same scenes. House Republicans argue for returning to policies like deregulation, top end tax cuts and attacks on workers that drove us into the mess. Democrats remain compromised and divided.

So for those American commentators who decry the Japanese corporate corruption that impeded response to the nuclear disaster, one word of advice: Do not throw that stone without looking at the glass around you.

 

Follow Rev. Jesse Jackson on Twitter: www.twitter.com/revjjackson

 
 
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HUFFPOST SUPER USER
dragonmaster
05:23 AM on 03/25/2011
Reverend Jackson

the USA is still living in 1980- thinking the same solutions will solve vastly different problems today. The minor reforms the last few years will not be enough to prevent a far great economic catastrophe down the road- add to this climate change. The science for this presents an even darker more ominous view of our future.
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HUFFPOST SUPER USER
marijam
Independent
07:38 AM on 03/23/2011
There are voices on both the left and the right calling for a reevaluation of our trade policies. 60% of Tea Party members think that globalization has hurt us more than it has helped us. Independents and Moderates need to seek out those politicians who see our trade problems for what they are and can be trusted to make the changes that are needed. Democrats and Republicans need to rethink the religion known as free trade.
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HUFFPOST SUPER USER
Shaun Hensley
The American Experiment has failed
07:55 PM on 03/22/2011
"Our old economy cannot -- and should not -- be recovered. It was built on unsustainable disparities such as record trade deficits, Gilded Age inequality and a declining middle class. Wall Street's bubbles overwhelmed the real economy.

If we are to rebuild a strong economy with a broad middle class and the opportunity for all to participate in its widely shared blessings, then wrenching and fundamental changes are needed. "

Rev. Jackson, if you decided to run, you'd have my support.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
12:31 PM on 03/23/2011
Shaun, I was going to say the same thing.

X2
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
06:42 PM on 03/22/2011
Good article Rev Jackson. I'd just like to add one point... Right now in America there is LESS social mobility than in EGYPT! If you're born poor in America, the chances are close to certain that you'll die poor. If you're born middle class you will almost certainly die either middle class or poor, and if you're born rich you're going to die VERY VERY rich!
10:53 PM on 03/22/2011
Yeah! America is terrible!!! The poor people here can only afford to buy used cars(but buy new ones anyway) ! And we only give the poor $200 per month (for free) to buy food. And the middle class is almost as bad! They have houses that are less than 4000 sq. ft.!!!! Can you believe that? Why do the rich people get all the money!!! They should give it away, cause inflation, and make everyone poor!!! Then we would all be better off!

Do you realize a good number of people in Egypt make $2 a day. They can't afford food and you negatively compare the economics of America? That makes a lot of sense.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
12:33 PM on 03/23/2011
Downward mobility is much more likely than moving upward is.

That has been the case for a long time.
06:35 PM on 03/22/2011
Could someone tell me where "basic rights to bargain collectively" is located in the constitution? Has anyone wondered why Toyota and Honda did quite well through 2008 and 2009, continuing to pay dividends to investors while Ford struggled to survive and GM went bankrupt? Ford and GM employees had the "right" of collective bargaining. So they got paid inflated wages, which means the cost of the cars were inflated, which means the cars cost more, which means the cars don't sell as well.
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Protocolor
Have maths, will travel.
06:57 PM on 03/22/2011
Toyota and Honda are unionized, just so you know.

How about this for an answer: Toyota and Honda have lean, hard working management. Executives at these companies earn only about 11x what the workers do.

GM and Ford have huge, bloated and unproductive management structures that are filled with cronyism, nepotism and useless deadweight. Further, executives at GM and Ford are paid 475x what the workers earn.

But you conservatives are too cowardly to vent your venom at the rich.
07:37 PM on 03/22/2011
Those sound like Michael Moore numbers - or did you just make them up? From what I can find, the assembly line workers are making around $26/hr in the U.S., which is $56,000 per year. This is a ridiculous amount of money to pay for someone who is effectively doing the job of a cashier.

From what your saying, the management are making about $23,000,000 per year. If you just think about that for a second, you would realize that is not true. There are few people in management that are paid that much. I don't disagree with the fact that their is a lot of dead weight in management, but there is dead weight in employees as well. Unions eventually make it impossible to remove dead weight.
08:42 PM on 03/22/2011
Ford doesn't. Don't put them in the same position as Government Motors or that other brand.
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HUFFPOST SUPER USER
Shaun Hensley
The American Experiment has failed
07:55 PM on 03/22/2011
Can you tell me where Capitalism is found in the Constitution?
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
08:51 PM on 03/22/2011
Sure, it's in the zeroeth article, along with the corporations are people amendment!
09:39 PM on 03/22/2011
Never said it was. I was saying that there is no basic right to bargain collectively. If you don't like your job, quit. If you can't find another one that pays as well, then your job was paying you fairly.
05:10 PM on 03/22/2011
If you want to fix healthcare, outlaw health insurance.

The whole idea of health insurance is broken. When you pay for insurance, you shouldn't want to use it. You don't want to get a a car wreck - so you try your hardest not to, and car insurance prices remain fair. You don't want your house to burn down - so you don't leave the stove on, and home insurance prices remain fair. You don't want to get sick do you?

What do you do when little Sally gets a runny nose or a cough? Wait a few days to see if she gets better; or take her to the doctor because you have insurance, so why not.

What do you do if your back is sore because you don't exercise enough? Get some more exercise; or see your doctor, because you have insurance?

We are inflating the cost of health care by over using it. We are over using health care because we feel like we've already paid for it. Get rid of health insurance (this means medicare too) and let real supply and demand control the costs.
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HUFFPOST SUPER USER
asdusty
Free Bradley Manning!
05:25 PM on 03/22/2011
Just like supply and demand controlled financial markets?
07:46 PM on 03/22/2011
Please elaborate.
05:30 PM on 03/22/2011
I agree completely. Once you have a third party payer like an insurance company or the government involved there is no one to check costs & they automatically get inflated. Consumers of health care never know what it costs. If they did they would have a positive impact on prices just as if they knew what government services cost they would never opt to pay for them! Governments charge $50,000 to change a light bulb & give money out to organizations lead by people like Mr. Jackson who can't keep a straight set of books or ever account for the taxpayers money!
04:55 PM on 03/22/2011
Jesse, please run for president again!

Perfectly said.
05:14 PM on 03/22/2011
Jesse. Yeah. He has the passion and the love of country.
HUFFPOST SUPER USER
jeanrenoir
05:29 PM on 03/22/2011
Too bad the VAST majority of American voters trusts Fox and Rush and DETESTS Jackson. I write this as a liberal who hates the demagogues of the right. But the facts are the facts. Jackson has only a small minority who care what he says anymore. His time is long gone.
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HUFFPOST SUPER USER
Shaun Hensley
The American Experiment has failed
07:57 PM on 03/22/2011
It doesn't matter. We need someone who will speak for the working people, if only to get a count of how many people WILL support a significant shift to the left.

We need to shut these 'liberals cannot get elected' people up.

We need to have something to build on.
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
08:52 PM on 03/22/2011
Sad to say, but I think you're correct.
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04:50 PM on 03/22/2011
I agree with almost all of Rev. Jackson's points, only I think convincing the Chinese to abandon their mercantilist policies is unrealistic.

But "yes" to all of the rest of his very insightful points!
04:25 PM on 03/22/2011
What hog wash. Global warming? What bull.

Cut government spending and get the government out of our pocket. Cut the new onerious regulations that are hurting new business start ups, and all small business in this country.

Obama and his union palls have almost ruined this economy and with them in power we are doomed!
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HUFFPOST SUPER USER
Shaun Hensley
The American Experiment has failed
07:59 PM on 03/22/2011
Fraudbama is a Trickle-Downer and a Free-Trader, just like Bush and Clinton and Bush and Reagan before him. THAT'S why our country is in the toilet, not the 12% of the population who are Unionized.
06:37 AM on 03/23/2011
Sorry, but I choose to believe scientists on global warming...as far as Pres Obama and his "palls" ruining this economy, unless you were hiding under a rock, Pres Obama has only been in office a couple years - the economy didn't get where it is because of Pres Obama, but because of "R" who insist on the cure all of tax cuts. It didn't create jobs under gw, nor will it now. Personally, I want regulations. Just maybe the gulf oil spill wouldn't have happened or been able to clean up quicker if there were regulations, instead of plans dating back to when penguins were in the gulf!
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didyouseethat
UI's should get a clue
04:21 PM on 03/22/2011
And yet, the left discusses this kind of stuff.

http://www.businessinsider.com/seiu-union-plan-to-destroy-jpmorgan
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HUFFPOST SUPER USER
asdusty
Free Bradley Manning!
05:22 PM on 03/22/2011
Hilarious...do you really believe a former Union official has the capability to do this? The corporate sector are more than capable of destabilising the economy on their own.
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HUFFPOST COMMUNITY MODERATOR
PATina
04:20 PM on 03/22/2011
Come on now Rev. Jackson... you don't think we spent all that money "rescuing" our economy to change it now, did you?

I agree w/ you... but try convincing those who have the power to change it.
04:15 PM on 03/22/2011
you forgot longer recess, better lunches and no homework.
04:14 PM on 03/22/2011
This is economic illteracy. You can't "start making things again" if your labor costs are seriously noncompetitive with other countries. You can't get competitive if Unions require unaffordable wages and benefits. You can't somehow bludgeon the private sector into creating jobs that aren't there (although all these class warriors certainly do like to bludgeon private sector employers). All government control can do is create vast numbers of government employees, who do little or nothing, produce little or nothing, and in the end suffocate the countries economy.
05:15 PM on 03/22/2011
" unaffordab­le wages "

The wages are unaffordable, when you seek record profits and obscene gifts to CEO's !

Try again, you missed !
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quorthon
Big government IS the answer!
05:31 PM on 03/22/2011
O.k., so let's eliminate the minimum wage, get everybody working in sweatshops for pennies and hour, 14 hours a day, with no health coverage, and the wealthy keep everything, which they lock up in offshore accounts. Yeah, that's a recipe for success.
04:07 PM on 03/22/2011
This is very straight-forward and impeccable logic, Mr. Reverend Jesse sir, and I would love nothing better than finding and electing more leaders that are listening. Thank you for writing this.
04:06 PM on 03/22/2011
I think there should be a law--yes, a law--that prohibits companies from laying off workers unless the company is losing money. It's shameless that, to keep profits up, companies lay people off. If a company is simply breaking even, they should hold onto their employees. There is something more than wealth and proft, there is human dignity and decency.
04:26 PM on 03/22/2011
hummmm.......perhaps. But then we would need a law to require workers to work harder, not cheat the company, look out for the best interest of others, and sacrifice for the common good. Human dignity and decency is a two way street.
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04:53 PM on 03/22/2011
I disagree with Angiefranci's suggestion here. However, the balance of obligation toward treating-others-with-human-dignity-and-decency clearly lies with corporations rather than with workers: As there are lots more workers than corporations, corporations can run over workers on that two way street!
05:12 PM on 03/22/2011
Workers by and large do work hard, and do care for the common good. Corporations as they function today rarely do the same because of the definitive moral problem known as corporate personhood. Do you understand what is known as corporate personhood?