Sunday, June 3, 2012


As the last of the Obama stimulus package peters out we find the economy beginning to stall. Less than half the size that it should have been, it's no surprise that it didn't work very well. Remember a third of what was spent went to tax cuts, and another big chunk went to the states to keep them in the black. The Republican response was to reject the money where they could, simultaneously cut jobs and spending. This plunged their red states right to the bottom. If we had another million people still teaching, fighting fires, pounding a beat, and inspecting bridges the economy would look a lot better. Add in a couple of million private sector jobs that these austerity cuts created in turn, and you can see the problem.

China finds itself currently in a another slump too. Their response is another stimulus package focused on affordable housing and energy efficient appliances. All to made in China of course. Romney's surrogates are touting Obama's failure to crack down on China's currency manipulation. They say Romney will do that the first day he's in the White House, they don't really say how. Obama could declare them a "currency manipulator" and I agree it was a mistake for him not to that when it took office, Bush could have at any point as well (this isn't new, but they'd like you to think so). Romney says that's what he'll do, he doesn't mention that doing so then requires tariffs to be imposed. When Obama slapped China with a 99% tariff on tires, 48% on steel pipe and now 41% on solar panels, Romney called that "protectionism". Romney doesn't want you notice that he's not telling you the truth.

Even if you could force China to allow its currency to float against the USD on the currency markets, without imposing tariffs, at this point it probably wouldn't help. Monetary policy is no substitute for trade policy, and no, switching to the gold standard wouldn't work. The one thing that has always worked throughout history is tariffs, and we can see over the past couple of decades what happens without them.


Anonymous said...

Tariffs don't just support industries, but labor forces as well. Tariffs aren't getting raised or even implemented anytime soon. Not as long as the US continues to be aligned with treaties (GATT/WTO) that "prevent" us from doing so. Those who are really pulling the strings aren't the patriots they claim to be. Their loyalties lie with the profit margin. Furthermore, things are going as plannned for the powers that be. They want us to be the serfs in their Neo-feudalistic paradise, so protecting labor forces is out of the question.

Anonymous said...

Stimulus Shlimulus
WWII was a stimulus package as well that should have illustrated an important concept to civilization.
A society needs to manufacture, mine, produce agriculture products and in the new age educate the next generation to develop the new technologies.
The sad state of affairs of our American economy is the fact that whore-dog santorum splat stained polititians are ruled and kept on (campaign contribution reelction campaign) leashes held by corpotate profit driven wall street pimps and the ubber supa dupa rich romney types that deal with the above said slut masters to steer and maneuver legislation and tax benefits to benefit the above hoarders of assets and treasure our civil society while benefiting from living in and existing in the same said civil society with its civil and legal protections without paying their share for the privilege.
We already have an austerity concept going on in this country already and it's being implemented upon the blue collar workers.
What we (the good ole United States of America) is an an austerity porogram upon the Uba duba supa rich. No more tax credits for all the mfg concerns that export jobs, no more financial institutions gambling on markets and commodities with account holders savings accounts.
Let's get a steel industry that can create a Bay Bridge for the tax payers that employs Americans at middleclass wages instead of imported coolie workers doing 15 hours a day for a few dollars a day. Google it fool, if you don't believe me.
WWII put people to work. We need to put people to work with a permanent emphasis on American industry creating a large percentage of American infrastructure.
You say we are a service economy and old heavy industries are a thing of the past (lyin paul ryan little queerdo-no offense to homosexuals), well how many cell phone service plans can we sell and insurance policies do we need?
It's time we start producing hard goods in this country and puttin the non college track United States of America citizens back to WORK at decnt middle class wages like it used to be!!
F*$K walmart!!!!!!!!!

Where are the damn trolls??