Dan Mulhern does a nice job bringing up the issue of the overworked American. By any statistic its true, Americans work more then their developed world counterparts. Even the stereotypical hard-working Japanese. And of course if your a salaried worker all this does is decrease your hourly wage and increase the profit margin of your employer. No wonder its so popular!
Even as millions struggle to find work, others are suffering from never-ending work weeks that keep them from their families. Dan Mulhern on how to kill two birds with one stone.
I wrote this as a response to a commenter back in April. It still holds true today and it illuminates how I feel about politicians playing politics with the economy, rather then economically looking at spending and asking real questions (about how debt was created and the urgency of addressing it during a recession) to get real answers .
“Do you believe that the US economy will miraculously grow faster than the interest on the debt?”
Yes, a one year T-Bill has a 0.2% interest rate while the maximum 30-year T-Bill has a 4.4% interest rate. Most T-Bills hang around the 10 year range with a 3.3% interest rate. The average U.S. GDP growth rate from 1947 to 2010 was 3.3%. So with GDP growth rates within a realistic historic range, it is entirely possible to pay the interest. Now imagine what we could do to pay off the debt (not just the interest) if we wound down the Wars or cut other discretionary spending just a little. In fact under Clinton’s presidency, the projected FY2015 Budget surplus would have entirely paid off the entirety of U.S. debt with some to spare.
Just one thought. Its funny that fiscal conservatives seem to think defaulting on the debt is a justifiable strategy/approach to this problem. For all the talk about responsibility and balanced budget amendments, they’re happy to nullify pre-existing contractual obligations for the sake of politics. And if you look at who has contributed the most, its their presidents and they’re spending programs. What a bunch of deadbeats. And if you look at who is most likely to be hurt by all this; its the public through cuts to pre-agreed social programs, losses on their retirement savings, and the stability of our private institutions. So how is all this austerity to the point of insolvency talk good for America?
Here is an illustrative chart on Bush versus Obama’s effect on the federal debt. Note most of Obama’s spending was one off expenditures meant to stimulate the economy after Bush handed him a train wreck. Meanwhile most of Bush’s spending programs were long-term initiatives that continued after he left office (meaning Bush’s effect on the deficit is being understated in this chart.
The Chinese Economic Miracle is built on lies. As an extension of the American neo-classical dream, it is no surprise that it is failing to provide jobs and a vision of a sustainable future to its young people.
But in true Chinese character, we are provided a picture perfect Orwellian response to this jobs crisis:
With reports of rioting taking place in some ant tribe areas, the government is now looking to take action. Measures being discussed include limiting residents’ permits to skilled professionals and introducing electronic id cards for outsiders without a stable job.
We do not live in a post-industrial age
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