Economics / Politics

Robert Reich. Word.

“The Republican message is bloated government is responsible for the lousy economy that most people continue to experience. Cut the bloat and jobs and wages will return.
“Nothing could be further from the truth, but for some reason Obama and the Democrats aren’t responding with the truth. Their response is: We agree but you’re going too far. Government employees should give up some more wages and benefits but don’t take away their bargaining rights. Private-sector unionized workers should make more concessions but don’t bust the unions. Non-defense discretionary spending should be cut but don’t cut so much.
“The truth that Obama and Democrats must tell is government spending has absolutely nothing to do with high unemployment, declining wages, falling home prices, and all the other horribles that continue to haunt most Americans.
“Indeed, too little spending will prolong the horribles for years more because there’s not enough demand in the economy without it.
“The truth is that while the proximate cause of America’s economic plunge was Wall Street’s excesses leading up to the crash of 2008, its underlying cause — and the reason the economy continues to be lousy for most Americans — is so much income and wealth have been going to the very top that the vast majority no longer has the purchasing power to lift the economy out of its doldrums.”

http://www.salon.com/news/economics/index.html?story=/politics/war_room/2011/02/24/robert_reich_union_republican_showdown

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