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In Response to Re: Where Have All the Jobs Gone?:
In response to: "...We did this from the end of WWII to the mid seventies..." by gruffstuff
retiredtraveler posted: "Correct. A generation ago. No, I disagree. It cannot be done with the complexity we have created and the level of education/knowledge the average politician is working at............."
The whole concept of austerity has been completely whacked and proven disasterous for the current economy and jobs' market by many past and present examples. So you suggest we ignore these facts that indicate stimulus is needed? And your reasoning is things are too complicated? Really and we should do nothing different? Which of course means punishing the economy/jobs market with more austerity because status quo is the sequester? Wow!!!
Posted by saworld
The whole concept of austerity
The economic history of that is: Do not do that in a down-cycle.
In a down cycle, a government must maintain its previous up-cycle spending. Any reduction of that will generate private sector job loss. That extra job loss will dramatically increase the time it takes for jobs to recover. That said:
Our federal tax system must output up-cycle revenue sufficient to retire debt used in the previous down. That insures debt interest does not generate private sector job loss thru all of our economic cycles that follow.
Prior to 2001, our federal tax system did that.
After 2001, those people in our Congress increased their spending while they cut the tax-dollars our federal tax system outputted. Because of their irresponsible revenue conduct, regardless of what our economy does, our debt will grow. The interest on that will grow. And…
As our debt gets bigger, the interest on that will make our down-cycle job loss bigger and our up-cycle job growth smaller.
Government debt aint free. Private sector job loss from the interest paid on that is part of the cost. The interest we pay on our federal debt is what makes our jobs growth so small.