This will be a pretty straightforward WCE today as I think today’s issue is pretty straightforward. It’s just that so many Republicans, conservatives, and the corporate interests they serve have made it complicated.
First, a quick economics refresher. Keynesian Economics: Whatever people think about the economy is how the economy winds up. If they think it’s strong, they invest and spend, and it becomes strong. If they think it’s weak (if they really fear their jobs will be lost and the housing bubble will burst), they horde their money and refuse to make various purchases, thus the economy becomes weak. In other words, the perception becomes the reality.
[Contrast this with Trickle Down Economics, which is the disproven theory that giving rich people more money (rather than giving the middle class who will spend it more money) will eventually trickle down to everyone else. In simpler words, in a global economy where people can spend their money anywhere, “Trickle Down” is horse shit.]
Sorry for the lecture, but understanding the truth of Keynesian economics—-that everything is psychologically driven—-gets you to understand this very simple reality: Republicans keep playing up how shitty the economy is, and it stays shitty. They keep hitting voters over the head with how bad the economy is, what a lousy market the U.S. is to invest in, why businesses shouldn’t hire people because their taxes could get raised, how Obama can’t protect their investments and has no clue how to run the economy…and, big surprise, people start to believe it. They believe it so much that it creates that reality, which is good for them since they want Obama to fail, but bad for everyone who isn’t a millionaire congressman.
The economy has stayed bad because one major political party that controls half of congress has essentially said “We have no plans, we’re just here to tell you how shitty it is.” You don’t really have to have a degree in Economics to see how jittery this would make the markets. But you do have to vote them out to stop it.
Way to say what most of us are a thinking. Thanks
I think you have a point here. But when the news media bombards us with “high” unemployment numbers, and essentially states that the economy is not getting better–or showing minimal growth–how does that play on the American psyche? The Republicans can downplay progress all they want. Both the left and the right are guilty of using psychology to get/keep their respective sides in power. What about “trickle up” economics–incentives/tax breaks/startup capital for small businesses?
The economy is getting better but because the republicans want to win at all cost they will continue their bad mouthing.