Robert Reich: Economic Illiterate


In which we learn that the forty hour work week and time-and-a-half overtime ended the Great Depression, not the minor squabble called WWII.

There’s no better day than Labor Day to examine the nonsense that passes for high-minded economic policy proposals among the cognoscenti on the Left. To assist our examination is the erstwhile Secretary of Labor himself, the diminutive Robert Reich, who happens to be flogging a new book, “AFTERSHOCK: The Next Economy and America’s Future”, to be published in a couple of weeks. I can’t wait.

The Real Lesson of Labor Day

Face it: The national economy isn’t escaping the gravitational pull of the Great Recession. None of the standard booster rockets are working. Near-zero short-term interest rates from the Fed, almost record-low borrowing costs in the bond market, a giant stimulus package, along with tax credits for small businesses that hire the long-term unemployed have all failed to do enough.

That’s because the real problem has to do with the structure of the economy, not the business cycle. No booster rocket can work unless consumers are able, at some point, to keep the economy moving on their own. But consumers no longer have the purchasing power to buy the goods and services they produce as workers; for some time now, their means haven’t kept up with what the growing economy could and should have been able to provide them.

[emphasis added throughout]

Federal stimulus: booster rocket, or enema syringe? Keynesian economics had once been relegated to the dustbin of history, and we should not be surprised to be witnessing another failure in its current application. As Churchill said, “Those that fail to learn from history are doomed to repeat it.” Too bad Sir Winston is on the Obama Administration’s s*** list.

Reich goes on to attribute our current economic woes to an uneven distribution of wealth. The tech boom of the 90s outsourced much of our labor, you see, and the masses compensated for their income losses by working more hours and extracting $2.3 trillion in equity from their homes. (Which, if money were the sole problem, should have gone a long way toward fixing it.) Instead, all that wealth rolled uphill, concentrating in the wealthiest 1% of the population:

The economists Emmanuel Saez and Thomas Piketty examined tax returns from 1913 to 2008. They discovered an interesting pattern. In the late 1970s, the richest 1 percent of American families took in about 9 percent of the nation’s total income; by 2007, the top 1 percent took in 23.5 percent of total income.

O, for those halcyon days of the Carter Administration! What I recall of those pre-Reagan days is the Soviet threat, gasoline lines, 20% inflation, and a decade’s worth of negative returns in the stock market.

The Great Depression and its aftermath demonstrate that there is only one way back to full recovery: through more widely shared prosperity. In the 1930s, the American economy was completely restructured. New Deal measures — Social Security, a 40-hour work week with time-and-a-half overtime, unemployment insurance, the right to form unions and bargain collectively, the minimum wage — leveled the playing field.

Reich elides over the fact that none of those measures snapped the U.S. economy out of the Great Depression. 1937 is offered as the example of the double-dip recession we’re currently trying to avoid.

In the decades after World War II, legislation like the G.I. Bill, a vast expansion of public higher education and civil rights and voting rights laws further reduced economic inequality. [Huh? - ed.] Much of this was paid for with a 70 percent to 90 percent marginal income tax on the highest incomes. And as America’s middle class shared more of the economy’s gains, it was able to buy more of the goods and services the economy could provide. The result: rapid growth and more jobs.

In this twisted view of reality, the wealthiest Americans happily paid 70 to 90% of their top dollar in income tax because, to paraphrase his argument, “A falling tide lifts all boats.”

Mr Reich’s prescription?

We might consider, for example, extending the earned income tax credit all the way up through the middle class, and paying for it with a tax on carbon. … Consider how much our society now spends on such things as foreign wars designed to secure our sources of oil, as well as oil cleanups. [But BP's shareholders are paying for the cleanup... oh, never mind. -- ed.]

In other words, put 70% or so of the American population on the public dole, and scrap the pretense that Cap and Tax is anything other than a convenient vehicle for income redistribution.

Here’s another brilliant idea in a similar vein:

Another step would be to exempt the first $20,000 of income from payroll taxes and paying for it with a payroll tax on incomes over $250,000. This, too, seems reasonable, given that under current law only the first $106,000 of income is subject to the Social Security portion of the payroll tax – a particularly regressive system. Most higher-income people, who get good medical care, live longer and collect far more in Social Security benefits, than do lower-income people.

Ummm, it seems reasonable to take Social Security, which has always been sold as an insurance plan, and drop the pretense that it is anything other than another vehicle of income redistribution.

As if that’s not enough:

Early childhood education should be more widely available, paid for by a small 0.5 percent fee on all financial transactions. Public universities should be free; in return, graduates would then be required to pay back 10 percent of their first 10 years of full-time income.

Oh, my word! The “small 0.5 percent fee” shows how complete is Mr. Reich’s separation from reality. Find me a money market account that yields 0.5% per annum! And it takes no great measure of financial sophistication to understand that much of our economy depends on efficient financial markets; a 50 cent fee on every $100 transaction would cripple the very institutions that make our markets liquid and efficient.

Mr. Reich’s college payback scheme would combine two time-honored traditions of the Left: tithing (only with the government in the role of the church), and indentured servitude. In practice, the 10% surcharge on graduates’ salaries would serve to discourage gainful employment, but might serve to spur a renovation boom for the graduates’ parents’ basement apartments.

Mr. Reich concludes:

Here’s the point. Policies that generate more widely shared prosperity lead to stronger and more sustainable economic growth — and that’s good for everyone.

The rich are better off with a smaller percentage of a fast-growing economy than a larger share of an economy that’s barely moving. That’s the Labor Day lesson we learned decades ago; until we remember it again, we’ll be stuck in the Great Recession.

No, here’s the point, Mr. Reich. Our system of government depends on the consent of the governed. In our system, that top 1% (and perhaps more importantly, the slice between 30% and 1%) represents the job-creation dynamo for our economy. We burden it at our peril. No less luminary than Sen. John Kerry (D-MA) has shown us  that the ultra-rich like paying taxes no more than the common man. In fact, they have the resources to (legally) avoid paying taxes that they deem to be unfair, by hiring accountants, tax lawyers, or by taking delivery of their foreign-made yachts in tax-friendly jurisdictions.

Failing that, many will check out of the system by retirement (full or partial) or by relocation.

Besides, it’s not the super-wealthy upon whom this new tax burden would fall; most of them are Heinz-Kerry style coupon-clippers, anyway. No, the brunt of the new taxes and redistributive schemes would fall upon the entrepreneurial class, the ones willing to gamble on their own skill or with who are trying to make it into that top 1%, but who haven’t made it yet. That’s the problem with our economy now, Mr. Reich: too many of these folks are afraid to risk their money because they realize that their financial success is not viewed by morons Democratic policy gurus like you, not as a solution, but as the root injustice of our system that must be expunged. Consequently, job growth is nonexistent

(It’s worth noting on this Labor Day that Mr. Reich’s resume is chock-full of academic and government policy positions, but nothing resembling a private sector J-O-B appears. Just like the bulk of Obama’s cabinet.)

Cross-posted at VladEnBlog .


RSS feed

43 Comments Leave a comment

The Perversion of Labor by Unions

teapartynation Monday, September 6th at 2:17PM EST (link)

The Labor Day holiday should be abolished. The socialist unions have so perverted “labor” in the US that it has become a disgrace to those responsible people who work hard for a living.

For anybody that wants to better understand “unions” consider the following:

From the dictionary of REAL Americans: union = 1. a collection of goons and thugs organized to extort the maximum possible wages, benefits and pensions for doing the minimum possible amount of actual work. 2. a subsidiary of the lunatic-left d-crat socialist party that provides hundreds of millions of dollars in mandatory union dues as campaign contributions in payback for the billions of dollars of taxpayer money the d-crat socialists funnel to the unions. 3. an entity designed to make any company non-competitive and any state, city or local municipality bankrupt. 4. a collection of goons and thugs focused on voter intimidation, unless the voter votes for the d-crat socialist party. 5. a tool of the d-crat socialist party to implement its anti-democracy ideology by preventing workers from having a secret ballot as to whether they want to join a union, and instead subjecting them to what is called “card check” that allows union goons and thugs to harass, intimidate and threaten workers to join their union.

The irony of "labor" day as a paid day off...

Next93 (Diary) Monday, September 6th at 5:57PM EST (link)

I’ve been working as an R&D contractor for most of the last two decades. The good news is that I get paid based on my billable hours, the bad news is that I get paid based on my billable hours. In other words, I get paid for all the extra hours I put in, but I don’t get paid vacations, sick leave, or holidays.

To me, Labor day is simply a day of lost income forced on me by the unions,

On the other hand, a day in which people get a days pay for doing far less than a days work DOES seem like a pretty good symbol of the labor movement. The fact that this also appears to be a weekend for “matress blowout sales” just kind of adds to the irony.

Obama was The One in 2008.
He’ll be a BIGGER one in 2012.

 
 

You Are Too Kind

saintgeorgegentile Monday, September 6th at 2:20PM EST (link)

He’s also a historical illiterate.

Freedom is the glue of capitalism, that amoral wisdom of the markets that most efficiently allots goods and services to a citizenry.
-Victor Davis Hanson

How funny. I left that out in the interest of shortening the title. nt

Steve Maley (Diary) Monday, September 6th at 3:15PM EST (link)

The blogger formerly known as ‘Vladimir’.

Seemed Only Logical

saintgeorgegentile Monday, September 6th at 4:31PM EST (link)

On another subject, any further info on “CSI: Macondo”?

Freedom is the glue of capitalism, that amoral wisdom of the markets that most efficiently allots goods and services to a citizenry.
-Victor Davis Hanson

Re: CSI: Macondo

Steve Maley (Diary) Monday, September 6th at 4:54PM EST (link)

BP has recovered the BOP and riser, which are now Considered evidence.

I read something that indicated that 3 pieces of pipe were found. One was only 12 inches long. Speculation that they resulted from previous failed attempt to cut riser. We should know soon.

The blogger formerly known as ‘Vladimir’.

Did anyone read BP its Miranda rights? Just saying..nt

mikerazar (Diary) Monday, September 6th at 11:49PM EST (link)

We have a nation to save, people.

 
 
 
 
 

In 9th Grade

jsanzone (Diary) Monday, September 6th at 2:26PM EST (link)

I wrote “The Real Meaning of Veteran’s Day” and it was infinitely more compelling (though it was full of split infinitives and ‘historical examples’) than this long-debunked-economics drivel. Reich &c. are writing for a rapidly shrinking Leftist-elitist demographic.

http://www.2010blog.net
20/10 Blog

 

"Share The Meat"

Bloggy Bayou (Diary) Monday, September 6th at 3:14PM EST (link)

This is my take on How WWII Ended the Great Depression:

http://www.practicalstate.com/2009/04/12/share-the-meat/

Cheers

BloggyBayou
www.practicalstate.com
bloggybayou@practicalstate.com

WW2 did not help the economy

calgacus (Diary) Monday, September 6th at 6:27PM EST (link)

http://www.youtube.com/watch?v=gG3AKoL0vEs

 

Bastiat

enrique Monday, September 6th at 10:01PM EST (link)

Bastiat spoke to the theory that destruction was a legitimate economic policy in his Broken Window Fallacy. He also wrote extensively about keeping people employed in the armed services as an unproductive use of labor in Things that Are Seen and Unseen.

The depression ended because of a 75% cut in government spending which allowed for more private capital in our economy. Oh, and Europe was blown to hell.

http://www.econlib.org/library/Bastiat/basEss1.html

“There are a thousand hacking at the branches of evil to one striking at the root.” Henry David Thoreau

 
 

I always thought that Lawrence Kudlow had a ulterior motive

kyle8 (Diary) Monday, September 6th at 4:02PM EST (link)

for having Reich on his program all the time. He is so easily defeated in debate by any and all of the other guests.

Kudlow just likes to let the liberals be their own worst enemy.

“Nothing works like freedom, Nothing succeeds like liberty”
Kyle

 

oh vladimir

doubleodd Monday, September 6th at 5:18PM EST (link)

In your anti-tax hysteria, you entirely miss the point of Reich’s argument. He’s talking about something for more important than tax rates. He’s talking about how to save capitalism and America. For 30 years after WWII the rich and the poor increased their wealth at the same pace. The top 1% of the population earned about 10% of the nation’s wealth and that left enough for the upper-middle, middle and lower class to increase their wealth enough to enjoy a steadily rising standard of living. But since 1980, the top 1% has increasingly taken a bigger share of the pie. Now they earn 25% of what American’s make every year. The problem with that is that it has left the upper-middle, middle and lower classes with not enough to grow their standard of living. In fact, the rest of America has actually experienced negative earnings growth over the last 30 years as the upper 1% has taken more and more. Why is that terrible besides the obvious unfairness? What we see now as we try to pull out of a recession is that in a consumer driven economy, that richest 1% doesn’t spend its money. It saves it. So there is no middle class consumer engine to fund a recovery. That’s the structural problem he’s talking about. And here’s the great irony which you clearly don’t want to address. That top 1% which is watching its money pile grow is getting that pile due to the benefit of socialism for the rich. This 1% work at banks that get massive bailouts, or at companies that receive huge tax breaks gained through buying off Congress, or at hedge funds where the tax rate on non-at-risk capital gains is 15%. For all your carping about “Liberty”, it seems the only thing you really care about is making sure the rich get really rich. That’s not what I think about when I think about what the founding fathers called Liberty. One thing Liberty means to me is something America has always stood for – a fair playing field. It’s not fair when the rich can lobby their way into paying less than their fair share of taxes (taxes are lower now under Obama than under Reagan by the way). No less a hero than Warren Buffett says there is something terribly wrong when his secretary pays 35% taxes while making $50,000 a year and he pays 15% taxes making billions a year. So if you examine what Reich is saying, he’s saying that by creating a system where the rich take home everything (well 25% of everything right now) and don’t pay their share of taxes, the nation is screwed. We are turning into a nation where so much of our wealth is concentrated in so few people, that the economy cannot function properly. This is where Russia was under the Tzars. It’s called an oligarchy. The most rich and powerful, aided by the government, grow and consolidate their power to the detriment of the other 99% of the nation. Is that your America Vladimir? Or do you prefer the oligarchy of the Tzars… Vladimir?

G'bye (nt)

Neil Stevens (Diary) Monday, September 6th at 5:36PM EST (link)

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

Oooh. Now he's doubleplusundead.

Steve Maley (Diary) Monday, September 6th at 5:49PM EST (link)

Sorry, just reread 1984.

You have all the fun, Neil.

The blogger formerly known as ‘Vladimir’.

 
 

"Free Trade"

onehutu Monday, September 6th at 5:38PM EST (link)

I don’t disagree with your perspectives on this issue doubleodd, but we must also include the impacts of so-called “free trade”. Accelerated under the Clinton administration, the free movement of labor was seen as “inevitable” but has resulted, in my view, in a race to the bottom for wages. It is no longer possible for a person without advanced skills to earn a living that will support a family. Most of the production oriented “middle class” has been off-shored and outsourced to the lowest wage countries. We have an increasingly pitiful industrial base (not including defense related industries) and we are not even bothering to train workers to compete in this new economy, leaving us as weak nation with massive trade deficits.

Free Trade = Tax Cuts

Neil Stevens (Diary) Monday, September 6th at 5:41PM EST (link)

I love how all the Perotistas just love higher taxes in the name of the Great People’s State.

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

Sorry

onehutu Monday, September 6th at 5:48PM EST (link)

Neil (Mr. Stevens?), how does this work? I can understand the benefits of free trade in terms of lessening the costs of production (having been very active in globalizing IT for the past 8 years), but I am unclear what you mean by free trade = tax cuts. My concern is the impacts free trade has had on so many working people whose support we need.

 
 

Trade deficits are an irrelevant abstraction

aesthete (Diary) Monday, September 6th at 7:55PM EST (link)

If you removed NYC from the equation, the US would have a decent-sized trade surplus. This is because financial centers do not “export” wealth, technically, but “consume” large amounts of wealth, both produced inside the country and out. Other financial cities have similar trade deficits. There are a number of reasons why trade deficits are completely unimportant, regardless, but that’s probably the one that is most easily explained.

The act of defending any of the cardinal virtues has today all the exhilaration of a vice – G.K. Chesterton

 
 

You're railing against rent-seeking

Jeff Weimer (Diary) Monday, September 6th at 6:08PM EST (link)

But call it “the rich”. We’re not particular fans of rent-seeking, either. But the sad fact is, is people like Reich who create and foster that type of behavior, with tax loopholes and carve-outs for favored constituencies and companies. Reich, with this “plan” merely wants to create a dependent constituency, which seems to eagerly include you. After all, you seem to favor leveling the playing field, and bringing “the rich” down may make you feel better since you can’t bring yourself up.

Oh, and if your hero Warren Buffet is so concerned about him paying less than his secretary, why doesn’t he voluntarily pay extra to equal it? Why does he feel he needs to be forced into it along with everyone else? And why do you not see the contradiction in his statement?

The constituency Vladimir and most of us here want to favor is smaller companies and the self-employed, not big business.

Anyone who has the power to make you believe absurdities has the power to make you commit injustices.
-Voltaire

 

A blank, removed poster space is a terrible thing to waste,

cactusjack Monday, September 6th at 9:55PM EST (link)

oh for another 5minute Bollywood extravaganza excerpt or singing Japanese powder puff girls or Ukrainian Elvis impostors; besides highest quality and quantitative political analysis and comment at RS, we get the best of Neil’s excellent video archives. I imagine by now the trolls and interloping libs are thoroughly confused and do not know how to explain these to their leaders; they assume these are some kind of coded activation messages to millions of programmed conservative activists. Let them continue to worry………..

 
 

Double Odds are you are getting booted

ywhyvon1 Monday, September 6th at 5:35PM EST (link)

Socialist with fork looking for Socialist with pork pie-unknown

 

Not sure if he's stupid or a liar

ohiohistorian (Diary) Monday, September 6th at 5:38PM EST (link)

Reich famously quotes that the income of the “middle class” has not grown across the Reagan and Bush years. Here is a curve which says that a little bit, but it much more says that the economic policies that he promulgates will make it even worse.
http://www.house.gov/jec/middle/crunch3/fig-2a.gif
Considering that this is done by a JOINT committee, and not by one party or another, you’d think he could acquaint himself with the facts, wouldn’t you?

““Liberals tend to put the onus of your success on society and conservatives on you and your family.”

Dennis Prager

But it doesn't show the SIZE of the middle class, or of the "wealthy"

Next93 (Diary) Monday, September 6th at 6:09PM EST (link)

People like Reich (that is, academic leftists completely deviod of intellectual honesty) like to pretend as though Amercan class distinctions were as static as those in Edwardian England, which is basically absurd.

The income of the middle class is basically a nonsensical measurement, particularly if your definition of middle class is based on abitrary income levels to begin with. What’s more important is how many people moved across those class distinctions and in which direction.

The real question isn’t “are the poor getting poorer” (and they’re not), but “are they getting rarer”.

Obama was The One in 2008.
He’ll be a BIGGER one in 2012.

Intergenerational class mobility is down

theopinionguy Monday, September 6th at 11:24PM EST (link)

As you state, what’s more important is how many people moved across those class distinctions and in which direction. The direction is DOWN.

ht tp://www.stateofworkingamerica.org/tabfig/2008/02/05.jpg

ht tp://www.stateofworkingamerica.org/tabfig/2008/02/04.jpg

ht tp://www.stateofworkingamerica.org/tabfig/2008/02/06.jpg

ht tp://www.stateofworkingamerica.org/tabfig/2008/02/07.jpg

Sorry to burst your bubble.

Oooh... looky, looky.

uselogic Tuesday, September 7th at 6:00PM EST (link)

Another progressive proferring progressive economic analysis by a progressive- -virtually- socialist group as economic fact. They even use Reich as a recommendation on their site. “It’s true because I say it is.”

Come on back when you have a unbiased source in the debate, there Sparky.

 

G'bye (nt)

Neil Stevens (Diary) Tuesday, September 7th at 6:14PM EST (link)

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

 

PS

Neil Stevens (Diary) Tuesday, September 7th at 6:15PM EST (link)

Kinda shameless using a book blurbed by Reich to defend Reich.

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

 
 
 
 

Someone please tell me that this man's been getting stupider since leaving government

Next93 (Diary) Monday, September 6th at 6:20PM EST (link)

The idea that someone this stupid was serving as secretary of commerce (IIRC) is frightening.

Does he really think that the middle class were seeing any of that 90% marginal tax that the rich were paying when Kennedy came into office? And just exactly how was the government funding the civil rights movement (which didn’t really come into its own until after the Kennedy tax cuts)?

Oh, and by the way, the reason that they cap the social security “insurance” payment at 12% of your first 106,000 in income is that they also cap your benefits at that level; anything over 106,000 in a year isn’t counted towards your retirement allotment.

Obama was The One in 2008.
He’ll be a BIGGER one in 2012.

but the unstated trick to the SS issue

Jeff Weimer (Diary) Monday, September 6th at 6:32PM EST (link)

Is to take the money from the over $250K set, but still cap their payouts at the $106K level. You never hear that mentioned in the arguments.

In the first place, they came up with this low level because it wouldn’t be “fair” that the rich got all these high payouts based upon their high income, that they didn’t need it and this was a “safety net” for the middle class.

Anyone who has the power to make you believe absurdities has the power to make you commit injustices.
-Voltaire

 
 

Mr. Reich, you're an idiot, sir.

lineholder (Diary) Monday, September 6th at 6:42PM EST (link)

There are very few people over the age of 40 years who have any confidence that Social Security will be around when we hit retirement age. We can’t depend on Medicare either. It’s dumber than dirt to expect us to pin our hopes on the naive belief that the wealthy will fall into line lock-stock-and-barrel with progressive redistribution of wealth policies. Wealthy people can very easily transfer their citizenship to other countries. They don’t have to stay here.

So, those of us over 40 are reevaluating our lifestyles and how we spend the money we earn. We’re focusing more on finding ways to save money and paying off the debts we currently have. We aren’t contributing back into the economy, particularly in the form of consumer goods, in the same manner that we were a year ago. If we own businesses, any plans that we might have had for growth and expansion are being put on hold.

What it comes down to is that if we don’t want to find ourselves in our golden years at the mercy of a government who sees the elderly as a burden to society, we have to accept the responsibility for this on our own. It’s our own choice to make, not yours.

 

Robert Reichhhhhh

rick554 Monday, September 6th at 6:58PM EST (link)

The sad thing is…Reich is the best that Obama and his socialist crowd have. No wonder none of them have a clue .
He is the one that said, in the glory days right after the election, that they didnt want good jobs going to white, male, professional, union construction workers. lol
THIS white male, professional , union construction worker hopes to meet this very small man someday!!

Rick554

 

Reich

dennism (Diary) Monday, September 6th at 7:09PM EST (link)

He’s probably a nice guy, but I’ve never seen him be correct on a single prognostication. He seems to want the USA to be more like Europe. But European polices seem to bring about unemployment rates that never dip below 10%…

Actually he can be quite prescient

saintgeorgegentile Monday, September 6th at 8:15PM EST (link)

http://newsbusters.org/blogs/p-j-gladnick/2009/10/13/robert-reich-reveals-brutal-health-care-truths-msm-snores

Freedom is the glue of capitalism, that amoral wisdom of the markets that most efficiently allots goods and services to a citizenry.
-Victor Davis Hanson

 
 

A Tiny Point, Humbly Submitted

Locke (Diary) Monday, September 6th at 7:50PM EST (link)

It was George Santayana who said “Those who cannot remember the past are condemned to repeat it.”

The Life of Reason (1905-1906), Vol. I, Reason in Common Sense,
From which we also have “Fanaticism consists in redoubling your efforts when you have forgotten your aim.”

Google listed Churchill first, but...

Steve Maley (Diary) Monday, September 6th at 7:58PM EST (link)

…he’s kind of like Yogi Berra or Casey Stengel, who probably didn’t say half the stuff they’re credited with.

The blogger formerly known as ‘Vladimir’.

 
 

Has Reich ever been right on anything?

aesthete (Diary) Monday, September 6th at 7:57PM EST (link)

Some of Obama’s economists are pretty smart, but I can’t think of anything that Reich has done or said that qualifies him as an “expert” on anything, much less economics.

The act of defending any of the cardinal virtues has today all the exhilaration of a vice – G.K. Chesterton

 

IVY LEAGUE EDUCATED SEEMS TO BE THE PROBLEM

sunkgleska Monday, September 6th at 11:50PM EST (link)

This country boy figures that Robert Reich can’t be blamed for his beliefs.
After all he is just another IVY LEAGUE educated socialist( my opinion)0.
I sure hope that those “famous” PRIVATE INSTITUTIONS are not recieving any txpayer monies!!!!!!
THAT IVY LEAGUE LIST JUST GETS BIGGER AND BIGGER!!!

Crazy Horse was right

 

Re Miranda rights, Transocean may need them, not BP

katesmith (Diary) Tuesday, September 7th at 1:29AM EST (link)

Transocean personnel as of July 20 were the only ones to be named ‘persons of interest.’ Even though the key BP officer Robert Kaluza had pled the 5th once or twice.

 

minor squabble???

gunslingr45 Tuesday, September 7th at 8:41AM EST (link)

Really???

I almost bet most WWII vets would love to meet up with this guy in a dark alley.
What’s he yapping about anyways? His and Roosevelt’s partner (Stalin) made out like a bandit!

“If you can’t support our troops feel free to get out in front of them.”

 

Reich's column illustrates the basic problem with Democrat tax policies.

Flagstaff (Diary) Tuesday, September 7th at 10:50AM EST (link)

Instead of viewing taxes as just a means to fund appropriate expenditures, Democrats (and some Republicans) look upon taxes as a tool to both redistribute (someone else’s) wealth and push the culture and society in the direction they want it to go. A particularly bad example:

“Early childhood education should be more widely available, paid for by a small 0.5 percent fee on all financial transactions.”

There is no connection between financial transactions and “early childhood education,” yet Reich picks this tax out of thin air just because he thinks he CAN. But as all Democrats do, he has his cart before his horse.

First, is the goal (early childhood education) worthy? The jury is still out on that. It seems to depend on what that education consists of and who is receiving it. To simplify, we shouldn’t be doing anything like this unless it is prioritized on merit above a lot of other stuff.

Second, taxes should be assessed only at a level that will support necessary and appropriate government services. There should be no “targeted taxes.”
The idea that “we want to fund a new program, so let’s assess a new tax and tie the two together” is ethically repulsive. It also fragments something that should be unified–the budget. Reich suggests that if we think up some new program, it’s A-OK to just add a tax on some poor shmuck to pay for it, disregarding all else.

Finally, nobody seems to want to think about what level of taxation is morally justifiable, nor do they want to consider the circumstances that make a deficit budget acceptable.

“The press is so powerful in its image-making role that it can make a criminal look like he’s the victim and make the victim look like he’s the criminal. If you aren’t careful, the newspapers will have you hating the people who are being oppressed and loving the people who are doing the oppressing.”– Malcolm X, Audubon Ballroom, December 13, 1964

 

essential government services

Common_Cents (Diary) Tuesday, September 7th at 1:00PM EST (link)

It boggles my mind every time some government has a budget crisis and they announce they are going to be restricted to “essential government services”. Well DUH?!!! Isn’t that what government is supposed to do in the first place?

This would make a great campaign commercial or message for any conservative group.

Obama=Golfer in Chief, Leading from, behind, the Back Nine.
Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.

 

Employment at what cost?

southcoast Tuesday, September 7th at 4:46PM EST (link)

The current administration is making the same mistakes that the administration of FDR. In an atmosphere of poor economic conditions, government imposed costs on business which only succeeded in making the American workers more expensive and thereby setting the stage for the exodus of jobs from our economy. Although, that succeeding period was one where the U.S. economy could adapt and create and expand other areas of commerce. I am not so certain our economy can endure this latest eruption of progressive policies. It seems the liberals have been bent for 76 years on just how much stress and load they can put on our system of commerce in order to break it.