Obama & McCain on Jobs: Same Old Approaches

http://money.cnn.com/2008/08/01/news/economy/wages_candidates/index.htm

McCain and Obama are falling back on the same old, tired, worn-out approaches to improving wages and increasing jobs.  McCain adheres to the ineffective “trickle-down” approach.  What was once an effective strategy under Reagan, when lower taxes on the wealthy actually boosted spending in the American economy, has evolved into “trickle-out,” where lower taxes on the wealthy and on corporations now boost spending for foreign goods and investment in “emerging economies.”  It simply doesn’t work any more.

Obama’s no better.  His primary campaign promises to attack the trade deficit have already been abandoned in favor of worn out Democratic approaches – boosting the minimum wage and boosting government spending.  Obama does propose boosting spending on alternative energy, but that will do little for jobs or wages.  It’ll create a few research jobs but, when it comes to implementing solutions, the manufacturing will all be done overseas.

These guys just don’t get it.  We’re not in just another business down-turn cycle.  America has been stripped of its wealth by the trade deficit and there’s little left to give.  Our foreign benefactors now see us as a poor place to invest and are cutting off the easy credit.  Yet, we continue to pump away $2 billion per day to fund the global trade welfare state.  These problems are immune to the solutions of these advocates of failed 18th century economic theories. 

Lacking a president with the vision, wisdom and guts to turn us away from blind trade, the U.S. is doomed to continue its headlong plunge toward becoming the world’s first “undeveloping country.”

Advertisements

2 Responses to Obama & McCain on Jobs: Same Old Approaches

  1. Pete,

    When will reach a point where increased government spending is no longer a possibility?

    We are witnessing GDP going into serious decline as is tax collection, in the mean time the ratio between national debt and GDP will climb to uncomfortable territory. In the past, purposeful inflation was induced to falsely bring these two economic indicators back in line.

    I don’t believe that inflation will work this time as wages need to pace inflation to maintain current living standards and our ever rising glut of labor will prove counter to wage hikes.

    So what happens now?

  2. Pete Murphy says:

    Mike, I think we may be very close to the point where the government can no longer increase spending. I say this because our foreign lenders have been burned badly by their American “investments” lately. I don’t think they would simply bail out of their investments, as that would hurt them as much as us. So I think it’s logical that their next move would be to deliver the next president, whoever that may be, a unified message. That message would be, “we are no longer willing to buy treasuries at the same rate, so you must stop your deficit spending.” I think we’re getting very close to the point where the rest of the world is going to start dictating U.S. policy. Why not? They own us.

    Regarding inflation and wages, the former has been outpacing the latter for decades. There have been upward spurts, but the overall trend has been down. We’ve only been able to maintain our standard of living on a mountain of debt. That ride has now come to abrupt end as our foreign creditors have cut off our funds. As you well know, the whole Ponzi scheme of the global economy is collapsing with the bankrupting of America. It’s going to be interesting to see just how bad things will get before everyone bails on globalization and it becomes every man (country) for himself!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: