Sunday, August 26, 2012

Robert Reich: Romney-Ryan Economic Plan Is "A Disaster For America"

Robert Reich, professor of public policy at UC Berkeley, secretary of labor under Clinton and talented cartoonist, outlines the five features of the Romney-Ryan economic plan: more unemployment through austerity; taking from the poor and giving to the rich; turning Medicare into a voucher plan and shifting costs to seniors; adding money to defense while cutting public investments, and not reducing the deficit for decades. It all adds up to a "a disaster for America." Watch:


Michael The Molar Maven said...

Disaster indeed! The republican economic plan is based on the specious concept surrounding 'job creators'. The platform is constructed in the belief that if you over-tax the wealthy business owners they won't have enough money to hire more people. If we cut their taxes they will hire more workers and the government will gain via the income tax on the plethora of new workers, even if it is at a lower rate. The problem as I see it is that, if nobody is buying what the business is making, no amount of government incentive short of direct spending is going to get these 'job creators' moving. When the public isnn't spending, the government has to be prepared to take up the slack. Customers create jobs; wealthy people and businesses do not. It is perfectly appropriate for President Obama to point out how the previous administration, with it's fiscal profligacy did indeed get us into the economic mess that we are in today and how his policies have averted a complete meltdown of our system. Republicans gave Ronald Reagan a free pass during the severe 1982 recession, erroneously blaming the Carter administration when it was actually the bills from The Vietnam War that had to be paid that was the main culprit. It was politically expedient as Reagan ran against Carter once again in 1984. (Having Carter's VP as the opponent didn't hurt.) Of course, they would never afford President Obama the same courtesy.

Jeff Tone said...

Exactly! Reich and you and Krugman and Stiglitz point out the essential flaw behind supply-side, as opposed to demand-side, economics. Keynesian-style economic stimulus is more necessary than ever.