Blogs » Politcs Plus » There is No Silver Bullet



I watched the normal five hours of Sunday talk shows and came away wondering, about the 14% that thinks Congress is doing a good job. It has to be family members, friends, and those who received favors because all I heard was" we passed about 140 bills in the house, but the Senate has not acted on them." What a familiar tone, if you go back two years when the shoe was on the other foot. Meantime, we still have at least 14 million people unemployed.It's hard to believe that a bill can't make it past the house and senate for the president's signature but that's we are.

Congress is having the Keynesian vs. Supply- side economics' battle. This morning on MSNBC's “Good Morning Joe" I was listening to John Cassidy. Staff writer of the New Yorker magazine described some of the economic problems we are going through today. He emphasized that basic Keynesian theory is that business is motivated by demand. I will go further in saying that when business and consumers are not spending, the government must step to keep the money in circulation. For example, if a local automobile dealership notices that customers have filled the waiting room and are waiting for a car salesman, the owner will go out and hire another salesman. Large companies can take a different approach when demand comes their way, by utilizing overtime, technology, and promoting those on part-time to full time before hiring. John Cassidy, and most economists agree, that the president's jobs bill is a good short term start, but it's too small for a long term remedy. The writer said supply-side economics' takes an opposite approach of Keynesian; favoring, cutting taxes, regulations, and other bottle necks that keep some job producers from hiring. Tax cuts is a less favorable form of Keynesian stimulus because, although it puts more money into the hands of consumers, it defeats the purpose if the consumers decide to save the money. Most recessions are brought on by the Federal Reserve in one way the other because, if they raise interest rates, it throws us into a recession for 1 or 2 years, and then we get ourselves out when they lower the interest rates. Unfortunately, when the 2008 financial crisis hit, our consumers were already in debt up to their eyeballs. If I remember correctly, consumers were saving a little bit less than 1% of their income before the crisis but today they are saving ~ 5%, that's a good thing, but for every dollar, they are saving, that's one less dollar that goes to solve our demand problem. It is also true that bad government policy can hinder job growth but in reality, the neither president nor Congress can do anything about demand because that has to come from consumers. According to a recent study, worker productivity has been on a steady increase, rising 62.5% from 1989 to 2010, but wages during that time are only up to 12%, yet some are calling for workers to take less wages.

The economists that I have been paying attention to say we need to something to keep us from going back to the 2009 recession. For that to happen we need to add 300,000 a month or at least start trending that way.I believe the GOP house will pass some part(s) of the president's job bill because they want show their constituents that they are doing something for them.

We can blame the media for not focusing on the most important issue of the day like jobs, but as GE's CEO Jeffery Immelt said on 60 minutes last night, he does not see Congress having daily meetings to tackle this issue. A lot of the political coverage yesterday was on “who are the Wall Street protesters" and could they give the Democrats a boost" and” does Mitt Romney have a Mormon issue?" It was as if the pundits wanted to lead the way in comparing the Wall Street protesters to the Tea Party. Does that really make a difference? Why does Pastor Robert Jeffress calling Mormonism a cult really matter? At best, it's a Republican primary issue not a national one. It's a pretty sad day in our political system, when a non-Christian cannot be elected president but one that does not believe in science, can. Our constitution clearly states, "No religious test shall ever be required as a qualification to any office or public trust under the United States."

There is no silver bullet, but everyone recognizes that there's too much money in politics. I think honest well-meaning people go to Washington to work on our nation's problems but get caught up in our broken system. The first day after raising their hands to uphold the constitution,they go back to their office, where they are greeted by lobbyists. They then have to get on the phone and solicit money not only for their next campaign, but also for their political party. I've heard a good idea from Lawrence Lessig the author of “Republic Lost" on how fight the current battle. We can whine all day long, but it won't matter because the Supreme Court in the “Citizens United" case said corporations can be treated as individuals; therefore, they can contribute as much as they want." That's water under the bridge, but the author suggested using public finance contributions such as the check off method on our 1040. He said that we could issue $50.00 vouchers for voters to give to their chosen candidates who opted in. The voter could give an additional $100 maximum of their own money. This would bring in about six billion dollars for candidates, according to the author.

This blog is just my opinions and some information I wanted to share. As I have stated many times I am not a spokesman for the Democratic party,the liberal agenda or anything in between. I am not nor will I ever use this forum to promote the candidacy of President Obama. People can vote for the candidate of their choice,I simply don't care but I will correct what I perceive to be a myth. I am on the side of the protesters for now because I think they are generally speaking for democracy. I heard a profound statement from one of them yesterday, when Christiane Amanpour asked the protester as why we have not heard much of their agenda, the protester answered "Because you don't have ordinary people on your show-only politicians."