The Republican Plans for Fixing the Economy

Conservative estimates put job loss during this recession at around 8,000,000 to 10,000,000 people with close to half of those job loss coming from housing construction and the manufacturing sections of society. The federal stimulus money by the President and his administration help to keep or replace around 2,000,000 to 3,000,000 additional jobs. So clearly without federal intervention the unemployment numbers for this recession could have been much worst. The question then becomes what to do next? How do we get the country to turn around, economically speaking? How can we begin to lower these insane unemployment numbers? How can we put Americans back to work?
First let’s examine proposals put forth by Republicans. Of course the leading suggestion is the old standby of “Tax Cuts”. More specifically tax cuts for small and big business. The theory being that putting more money into business pockets would enable them to hire more employees and in turn enable said business’ to provide more goods and services. More people back to work, more people buying things thereby pumping more money into the economy. Nice theory but the problem is that business, both big and small are not hiring workers because they don’t have enough money for capitol investment, hiring employees is considered capitol investment, there not hiring people because they have too much inventory on hand that is not moving. Then the second reason is that productivity levels at companies have not decreased due to the massive job loss. The remaining workers are performing at much higher levels of productivity or that the productivity loss is so minor that it is accepted by the company owners. In point of fact combined with the levels of inventory still being high the private sector really has no motivation to increase employment. It has nothing whatsoever to do with confidence or lack of confidence in the federal response to the economic woes in America or the world today. Too much inventory, rising productivity and no increase in consumer demand or consumer spending all adds up to lack of employee hiring.
Another proposal of republican’s is that government, both federal and state, are downsized so that they can get out of the way of business development and the savings of money from downsizing can be somehow either pumped into the economy, i.e. into the hands of Americans or used to pay down the deficit, either federal or state. This in turn will help to simulated economic growth in the United States. In the local campaigning for Governor in Georgia all the Republican candidates ads and commercials are all talking about downsizing state government as a means of economic job growth. Downsizing state government is always about nothing more than laying off state employees. Usually through some combination of out right lay offs, early retirements and position freezes. The end result always ends up with more people out of work. Of course this translates into less people having money to pay their rent or mortgages, less money to buy food and groceries and less money to put into savings. Following classical economic theory that should lead to less demands for goods and services. This, logically leads to less demands for new workers to be hired. So how will downsizing government lead to new jobs in the economy? Of course the answer is that it will not lead to new jobs in the economy. It will bring us more people out of work.
The final leg of the Republican strategy for job growth in America is to end burdensome regulations on American business all together. The market place should be the final arbitrator in the regulation of American Enterprise. The free market will punish those business’s that deal in poor service and poor products. No governmental oversight is needed to regulate health and safety concerns,
But of course as the BP Oil Spill, the Exxon-Valdez Oil Spill, the Worldcom Collapse and the financial crises that has eliminated some eight to ten million jobs in less than two years seem to indicated that less governmental oversight, both federal and local, is actually a prescription for disaster.
So as we can see the ideas put forth by the Republican Party amount to nothing more than a prescription for further economic disaster and more people out of work, not jobs being created.
By the way the Republicans supposedly great concern about the federal deficit and how that is the most troubling thing facing America today is, to me, nothing but a crass political bull. The same Republicans had no problem running up the deficit during the entirety of the Bush presidency during his two turns. Clearly this absolute fear of federal deficits are now just a creation of partisan politics. What takes it to a new “Twilight Zone” level of madness is the holding up of unemployment benefits in the name of being budget deficits fighters. And to claim that they’re trying to save children from future debt and payback while condemning millions of families to the joy of how will we keep a roof over our head or food in our children’s bellies? How outright cynical if not bordering on evil.
So the Republican approach and proposals to job creation and economic growth is pretty much the same program that there party used to shape the economic polices during the past two terms of George Bush. And what has been the results of these economic policies. Huge budget deficits, decrease in money going into the treasury, an economic crises of almost depression era proportions and seven to ten million loss of jobs. Yet the same causes of these problems are now being pushed as the solutions to getting the economy back on track. This is a dangerous move to make which will only leave to further social and economic chaos. These policies have to be fought on any and all fronts.

Good morning. I've returned...

Good morning. I've returned from (?) being hospitalized now I'm back and I will be hopefully posting regularly. Have a good day. Thank you.
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