(I’ll probably have some real-time bon mots about the debate on my Twitter feed)
Thoughts turn to tonight’s Presidential debate, which is scheduled to focus on domestic issues, particularly the economy. These debates actually matter less than the media would have you believe, at least according to the political science literature. But they may be crucial in ways outside the mere political sphere and in terms of the policy going forward.
Simply put, there’s a potential here to refocus this entire race, which has flown off onto tangents at every opportunity. As Jim Tankersley ably explains today, the biggest challenge facing working families in America right now is this: can I find a job at a good wage, and can the millions of others who want to work find one too?
The question is, “Why aren’t you seriously trying to solve the jobs crisis?”
The so-called “jobs plans” both candidates have put forth are, put simply, nowhere near aggressive enough to close the gap between where the economy should be right now and where it actually is, due to the Great Recession and the feeble recovery that followed it.
Voters understand this — just look at how many of them tell pollsters they’re not confident either candidate will improve the economy. Now, Lehrer needs to force the candidates to explain themselves. They’ll filibuster and offer platitudes.
Lehrer should not relent. He should say this: “Gentlemen, 13 million Americans want to work today but can’t find jobs. According to the nonpartisan Hamilton Project at the Brookings Institution, the economy remains 11 million jobs short of where it should be, by historical trends.”
Tankersley then goes through the jobs plans of the two candidates, which have nothing whatsoever to do with the near-term jobs crisis. They both offer a long-term vision, in some cases ideological, in others technocratic, for the future of the country, but neither of them deal with the raging fire in the here and now exemplified by those who cannot find work.
It’s actually worse than that – the plans on offer could prove actively harmful to the project of replacing those millions of jobs. Both sides talk about deficit reduction, about the “Bowles-Simpson principles” and all the rest. But we know where an austerity agenda will take us. Sahil Kapur points to a liberated report from the Congressional Research Service, which just tries to quantify the cost in terms of jobs from the sequester, the cuts to defense and discretionary spending as well as the 2% across-the-board reduction in Medicare reimbursement rates, in 2013. And CRS reports that among the many estimates are one showing 2.1 million jobs lost, just next year, from this policy.
Stephen Fuller, director of George Mason University’s Center of Regional Analysis, and Chmura Economics & Analytics produced estimates for the Aerospace Industries Association of the employment effect of cuts to defense and nondefense agencies’ budgets under the BCA. Using the IMPLAN Pro model, Fuller estimated that FY2012-FY2013 budget cuts of $115.7 billion (in nominal dollars) due to implementation of the BCA might reduce employment throughout the economy by 2.1 million jobs in FY2013.
That includes losses to direct federal employee and contractor jobs, indirect jobs from suppliers and other firms, and “induced” jobs which are supported by those direct and indirect jobs through consumer spending.
You can say that Governor Romney and President Obama don’t want to allow the sequester to go forward. They want to delay it, or replace it, or put in some mechanism to get around it. But here’s what I feel is the key point from CRS (emphasis mine):
Cutting federal spending will result in some employers losing business and some workers losing jobs. Because sequestration is scheduled to occur while the economy is slowly recovering from the 2007-2009 recession, those firms that sell their products to the government (either directly or indirectly) might have difficulty finding other buyers in the near term and the laid-off employees of these firms might have difficulty quickly finding new jobs. Achieving deficit reduction by some means other than the BCA’s about equal split of automatic budget reductions between non-exempt defense and nondefense programs might alter the composition of employers and employees who bear the burden of the cuts, but the impact on total U.S. employment may be similar.
In other words, it’s not the sequester, it’s the austerity. And both parties are on board for some form of austerity. Just allowing the payroll tax cut to expire will drag GDP growth down 1% in 2013, for example, and virtually everyone in Washington agrees with that. In fact, austerity began hitting the economy in mid-2010, when federal fiscal policy started to drag on GDP growth. It’s been relatively mild, which has allowed the US to outpace other economies (the IMF doesn’t expect the world to return to recovery until 2018). But the austerity from things like the Budget Control Act was always scheduled to really kick in come Fiscal Year 2013. That began on Monday.
The economy simply doesn’t have the footing it needs to withstand austerity, not with 13 million Americans out of work. And that issue is being left almost entirely unaddressed, shockingly so, in this Presidential campaign. Everyone has moved on.
This is the key question that Jim Lehrer can bring to the debate tonight. He can change the conversation and force the candidates to actually focus on what America really wants to hear.
I’m not holding my breath.





9 Comments


Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
It’s not the sequester nor the austerity, it’s an ongoing dynamic government strategy to encourage overseas investment and job outsourcing, in order to improve corporate profits. Why wouldn’t politicians give back to the entities that sustain them? They would be insane not to.
An inherent systemic economic problem can’t be fixed by spending borrowed money. And railing about a stimulus that will never come, and shouldn’t come because it would be a waste of money, is a waste of time.
This is Jim Lehrer we’re talking about……. Mr. Comfy/Cozy, Mid-Brow PBS.
You know, one foot in his grave/long lost twin of David Broder.
The whole point of Jim Lehrer is the status quo. No wonder MacNeil walked out on him.
Searching, pointed questions are not part of his remit.
The job situation must be looked at from longer perspectives. The minimum one is from the 2001 recession onward. That recovery was slow also on all fronts including jobs.
Absent the housing bubble that recovery would look very similar to this one. Millions of jobs came from construction, real estate sales, the home improvement mania, and of course the mortgage mania. Then too was the increase in overall consumption based upon home equity loans. Let us also not forget that all these things lead to the inflation of tax receipts as well.
The housing bubble was a policy aimed at producing those ‘good’ effects. Embraced by Greenspan the useful idiot, the banking and financial world for obvious reasons, and all politicians because they are idiots too besides which voters were happy with the housing inflation too.
The point being that the economy is now structured in a way that absent some bubble which will flow down to the average citizen and allow them to leverage up as inflating real estate did employment at current levels is near full potential.
LOL
I agree. I listened to a podcast with Hedrick Smith on his book “Who stole the American dream”
And it’s really interesting to hear him say just how “out of touch” he feels he was WHILE working as New York Times Washington Bureau chief. In the book he finally names some names of the people who actively worked to steal the American dream.
The media today don’t feel it is their job to hold anyone’s feet to the fire.
This, of course, is the way our post-post-modern financial elites think of the “economy.” But it was bunk in 1932 and it’s still bunk.
Bubbles are no way to run a national economy. New, better bubbles will not solve any of the underlying problems. Offering “little people” the means to “leverage up” is absolute bullshit. Leverage is what caused the meltdown in the first place and you can’t solve a debt problem with more debt.
The economy’s structure can be changed rather broadly with the right policy regime. It’s time that happened. The problem, of course, is that it’s not going to happen, regardless of who wins in November.
Excellent, spocko! Thanks.
Some of the old-timers really did give a shit as they went along with the script. He seems to be one of them.
Good to know. Also good to see a journalist of his stature calling FOUL on the whole thing.
excellent
Well said, and even if the O-bot’s chirpings weren’t “bunk”, that still wouldn’t invalidate David’s point. If the “economy”", as currently structured, was “incapable” of reducing unemployment, any decent moderator would ask, “how are you going to fix this? What are you proposing to get people back to work NOW and why should we believe you?”
And the “look at [unemployment] from the 2001 recession onward” (aka “Blame Bush!”) mantra is just insulting. I don’t care if Bush detonated H-Bombs over our major cities, Lloyd Blankfein’s Lawn Jockey has had four years to do something about it. Instead, all he offers is More of More of the Same.
No, thank you.