Mark Thoma: 'What Is Holding Back the Economy?'

Mark Thoma asks 'What Is Holding Back the Economy?'.

Not the first to say this, but the problem is that Republicans have misrepresented the causes of the distress so many households feel, in particular scapegoating those who have it even worse as somehow responsible for their problems (and the decline of America more generally). And then they sell the solutions as benefiting the middle class (trickle down anyone?) when they are really directed at reducing taxes for those at the top, and reducing the government services that people rely upon to survive in this economy to support the tax cuts.

But there is something else I'd like to note. The problem is blamed on government at all levels, and fiscal policy. We hear, when Republicans are named at all, that it is "especially" Republicans as though the balance only tilts in one direction. No, it's not especially Republicans, or even mostly Republicans that are standing in the way of doing more to help those who are struggling to make ends meet. It is Republicans. It's not congressional gridlock based upon reasonable differences over policy that cannot be resolved through compromise, it's an active attempt by one party to block anything the other party tries to do, even if it might help people economically. So long as the political benefits of this behavior — benefits based upon selling snake oil for the most part — exceed the economic costs of inaction, Republicans will stand in the way (all the while trying to convince those who are hurt the most by their actions that they will actually be helped). It's time to stop blaming "government" as though that is what is dysfunctional. The dysfunction, as evidenced by the slate of, and preferences over Republican presidential candidates, is in the Republican party. Their actions since the onset of the Great Recession have, in my view, hurt people who should have been helped, slowed the recovery, and diverted our attention from the true problems we face making it impossible to solve them (not that Republicans would have gone along with the solutions anyway). If this election tears Republicans apart and strips them of this ability to stand in the way of helping the working class, a dream I know, I will not be shedding tears. Quite the opposite.

Emphasis Mine

This is class warfare. The Capitalists are ruthlessly exploiting the Workers far more than necessary for the basic operation. This is exploitation for exploitation's sake.

With the destruction of the union movement and associated political movements, the Capitalists are rampaging unchecked taking a significant section of the working class along with them.

I do not share Thoma's tact belief that the Democratic Party is any better. They are also a Capitalist party, although less prone to rampaging.

The solution lies outside of Capitalism. This is something that nearly all workers will not consider. For them, Communism and Socialism are still evil as they think these systems prevent them from becoming rich.

The workers think they achieve a better outcome by becoming richer individuals instead of being part of a society that is richer and distributes its benefits more fairly.