Monday, December 7, 2009

Not much thinking going on

Fed Chairman Bernanke testified to Congress not to expect too much from the recovery and the jobless rate will not be coming down. This is bad news for the 1,000,000 people who had their unemployment benefits extended by the stimulus act earlier this year. Their checks will stop coming in the next few weeks and Congress has yet to do anything. They had also been receiving a 65% subsidy on their health insurance with their average family premium of $1100 but this has already run out while Congress is bogged down on health care reform that won’t kick in for years if ever.

The CBO estimates extending these benefits for another year will cost a hundred billion Dollars and this doesn’t allow for more people becoming unemployed. FDR refused to just hand out money during the last Republican Great Depression believing that jobs were the key to rebuilding an economy. But Roosevelt didn’t have today’s problems. The factories were still there and hadn’t been sold off to China.

Even if Obama creates jobs the money will drain off to multinational corporations that will not do anything to rebuild America. Obama’s economic advisors have him playing a monetary game of chicken with China that is putting the entire world economy at risk. In the meantime its making the people who run Goldman Sachs (where most of his advisors come from), it’s making them very rich. .

Meanwhile we have millions of people on "temporary" assistance instead of working and more are joining them every day. The rest of us continue to slide toward this same cliff edge since nothing has been done fix the underlying problems and no more than a handful of Congressmen are even thinking about it. The rest don’t do much thinking at all.