Sept 4, 2014. In a recession, there are two approaches to jobs: (1) stimulus and (2) cutting wages. Democrats favor #1 and Republicans #2. Wage-cutting can take the form of cutting the minimum wage (Michele Bachmann), busting unions (Ronald Reagan), or just letting high unemployment slowly force people to accept lower wages. The idea is that business will hire more workers if they are cheaper. That’s true when business is booming, but not when they can’t sell what they’ve already manufactured.
Emergency stimulus takes the form of temporary government spending on teachers, infrastructure and the like. Normal stimulus keeps interest rates low to encourage new investment housing and business.
In this recession, Obama did as much stimulus as Republicans allowed, and the Fed did its part. This has been too little, so high unemployment has cut wages while the top few percent got richer. History is quite clear on this one, take a look.
Debt by president, Recession deficit, Deficit causes
Class warfare — who’s winning?
Why is the Chamber of Commerce trouncing the Tea Party? — Stay tuned.