Friday, July 10, 2009

Robert Reich almost gets it right

I was cruising along on a slow news day, and came across this post by Robert Reich over on TPM Muckraker. Being a glutton for punishment, I undertook to read it.

To my surprise, he sounded very much like he agreed with my thoughts on the Recession.

We aren't going to have a V shaped recovery or a U shaped one....people are comparing to the wrong prior recessions. This one is different.

Our economy is 70% consumers, and most of them are out of money, have little or no credit, and no home equity to borrow against.

So far, so good. This is all true.

He goes on:

"Eventually consumers will replace cars and appliances and other stuff that wears out, but a recovery can't be built on replacements. Don't expect businesses to invest much more without lots of consumers hankering after lots of new stuff. And don't rely on exports. The global economy is contracting."

Still right so far except for China and India. Then we get to this:

"...This economy can't get back on track because the track we were on for years -- featuring flat or declining median wages, mounting consumer debt, and widening insecurity,..................."

Wow!. Its hard to believe. This liberal guy is right on track. I am thinking by now that he will finish up with a plan.

Sorry, no plan.

He finishes the above quote this way:

"........not to mention increasing carbon in the atmosphere -- simply cannot be sustained."

Now tell me what increasing carbon in the atmosphere did to cause our economic difficulties.

Nothing, absolutely nothing.

But it certainly will have something to do with the recovery, or the lack thereof.

What the dang fool is proposing apparently, is that we can't start the new economy, which we need, without carbon controls, which is the fastest way known to destroy what economy is left.

He says there is more to come on the issue of the new economy, I asssume without carbon.

I can hardly wait

The left will never learn.

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