Business & Economics

What must happen to reverse the loss of jobs across America? How long will this take? (October 7, 2009)


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Spend spend spend (who, me?)

Martha Olney

When no one buys what you produce, you lose your job (or, if you own the company, your business).  The U.S. economy has suffered millions of job losses because we are not spending enough to keep everyone in their jobs.  Look at Table B-1 of the BLS monthly jobs report and it’s clear:  every industry other than health care has lost jobs in the last year.

So in a sense, the solution is clear:  more spending.  Lots more spending.  More spending for goods & services will put people back to work.  Buy a new house (construction workers get work. So do … More >

Comments to "Spend spend spend (who, me?)":
    • Grand Bazaar That is absolutely right. The federal government should provide money for the localities so people can also have more jobs. I’ve always wondered how that works, the strange balance between spending and saving. Like the economy is some kind of weird, man made machine (which it ... More >
    • andrei Perhaps the sollution isn't spending much much more, but rather spending much wisely, encouraging products which aren't imported and supporting the ones created back home
    • Andrew Ramsey I think it will take years of pain, even before we can relax. This is a global economic slowdown and may take some time to recover. Still clunky!

Dozens of little Hoovers

David Levine

Economic policy is full of challenging decisions where the right answer is unclear.  It is fortunate, then, that the tragedy of our current economic conditions makes one policy response very clear: We must help state and local governments maintain the spending they had planned a year ago.

Right now almost all of the state governors are cutting spending and/or raising taxes in an effort to close their state budget gaps.  The result of these dozens of little Hoovers — and of the hundreds of mayors who are following similar policies — is predictable and disastrous.  Just when the economy needs more … More >

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