Worrying about government debt is like worrying about the monster under the bed. The issue isn’t debt, it’s power.
Kwazi Nkrumah: For years the banks, real estate agents and investors in real estate securities on Wall Street were making money hand-over-fist. They did all this while pretending to break from their previous established history of gross discrimination and red-lining against the disproportionately non-white borrowers whose limited financial resources forced them into “sub-prime” status in the first place.
Leonard Isenberg: Ex-LA Mayor Richard Riordan, who is now chairman of the board of cash-strapped ICEF Public Schools, is now in the process of trying to get his board to vote control of the charter’s 15 schools over to Alliance College-Ready Public Schools, another large, local charter-school group.
Robert Reich: Not only do we need extended unemployment benefits. We need a new WPA, modeled after the WPA of the Great Depression, to put jobless Americans to work. We need a national infrastructure bank to rebuild our crumbling highways and water and sewer systems, thereby putting additional people back to work.
Robert Reich: Consumers aren’t buying. They’re acting rationally. They’re worried about keeping their jobs, and they’re justifiably worried about the future.
Robert Reich: The economy needs two whopping corporate tax cuts right now as much as someone with a serious heart condition needs Botox.
Robert Reich: The real economy is jobs and paychecks, what people buy and what they sell. And the real economy — even viewed from a worldwide perspective — is as precarious as ever, perhaps more so.
So far, here in the U.S., over 4 million homes have been foreclosed on since mid-2006. Because consumer spending drops drastically whenever housing values decline, the entire U.S. economy has been in a tail-spin throughout this period. Over 10 million jobs have been totally eliminated due to a dramatic drop in consumer sales and the resultant decline in production.
Robert Reich: The Great Recession has accelerated a structural shift in the economy that had been slowly building for years. Companies have used the downturn to aggressively trim payrolls, making cuts they’ve been reluctant to make before. Outsourcing abroad has increased dramatically. Companies have discovered that new software and computer technologies have made many workers in Asia and Latin America almost as productive as Americans, and that the Internet allows far more work to be efficiently moved to another country without loss of control.