The Economy

Here is how one of you caring, thoughtful people responded to the Economy blog.

I disagree with the premise that only business can create jobs. Though I certainly agree that we need more business investing and spending to aid the country in getting back on track, it seems to me that, more importantly, we need the government to take the lead and act as the engine to lead us on the road to recovery. The enormous public works projects of the Roosevwelt era did create jobs and stimulate the economy, but as Paul Krugman, in the November 10, 2008 edition of the NY Times, points out: the Roosevelt plan to end the Depression was not successful because it did not go far enough. It was Roosevelt's own cautious approach that almost undid him. Krugman writes, And F.D.R. wasn’t just reluctant to pursue an all-out fiscal expansion — he was eager to return to conservative budget principles. That eagerness almost destroyed his legacy. After winning a smashing election victory in 1936, the Roosevelt administration cut spending and raised taxes, precipitating an economic relapse that drove the unemployment rate back into double digits and led to a major defeat in the 1938 midterm elections.

Though Obama is not (contrary to Republican claims) raising taxes, he and the Democarats are exhibiting the same type of cautiousness, and, unfortunately, it seems to be yielding the same results:continued unemployment and a potential defeat in the coming elections.

As in the '30s there are numerous areas in which the government should invest. Our infrastructure is crumbling: roads, bridges, dams and schools all must be build or reconstructed, and we need, enormous government investment in, among other areas, clean energy, medical research and, of course, job retraining.

We need the bold leadship and bold change that we were promised. I do not fault President Obama for failures along these lines. He has put forth constructive plans and a stimulus package which was significantly cut back by the " just say no" right wingers in both parties. If the "Stimulus Package" hasn't lived up to its promise, a significant part of the reason is because of the those cutbacks, and not because it has proven too expensive. This is why I firmly believe we should be pushing for further govenment investment in the economy, not less.

Gary Tomei


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