Wednesday, November 12, 2008

The War on Recession

The War on Recession
By Jerome Grossman

The success of the Obama administration will be measured primarily by its performance in reviving the United States economy, now sliding toward widespread unemployment, corporate bankruptcy, with a desperate middle-class that has lost its life savings.

The Bush administration, with the assent of the Democratically-controlled Congress, has initiated fiscal policies that point the way for the Obama administration: give federal government money to banks and other corporate entities considered “Too big to fail”; accept in return partial ownership and a measure of control over the subsidized companies. To this menu, subsidies for the citizens must be added. Everybody should be on the gravy train.

This degree of government intervention would have been unthinkable only a few months ago, especially with a conservative Republican president. President Obama will build on the Congressional and Bush precedents by vastly increasing the already sanctified programs, extending them to include many more economic entities under financial pressure, relaxing the qualifications to save or help those with lesser clout. George W. Bush has given Barack Obama political cover.

Opposition to this dramatic and expensive program will be minimal. Some will decry expansion of government power and they will be correct. Others will cite waste and fraud as thousands of companies and millions of individuals get in line for federal dollars and they will be right. In justification of its extension of Bush policy, President Obama needs only to declare a “War on Recession”, the battle to save the American economy from defeat, from deflation, from massive unemployment, from the collapse of US world financial hegemony, from the diminution of Social Security and Medicare, from the possibility that other nations might take advantage of our plight, even challenging us militarily.

The people of America will respond positively to the call to war as they have so many times in the past: the war on terror, the war to save democracy, the war to end war, the Cold War, the war on drugs, the war on poverty, etc., etc. The amount that will be spent on this war will be many times the $700 billion already appropriated but only a fraction of the losses sustained by corporations and private investors. The safety of the nation is at stake. The price is not the decisive factor. We will spend any amount to insure economic stability and to guard against social disruption. All we need is a slogan, The War on Recession to rally public support and achieve focus. The rest is history and it begins on January 20, in President Obama’s inauguration address.

2 comments:

an average patriot said...

Hi Jerome and Danny!
I am not sure Obama will be judged on how he handles the the economy crisis any more than he will be judged on how he deals with all the other crises Bush purposely created for him.
The right is already eating him up and Bushco is trying to make permanent as much of their damage as possible as Obama's team endeavors to unravel it!
Obama will be judged by his dealings with the right and his efforts to battle the hazzards and lies they put before him and feed the public.
Anyway Mayors ask Obama to rebuild America with a proven program as foreclosures spike and jobless claims highest since 9/11! Hmm success Bush style!
America's mayors are crying out for help from President-elect Barack Obama, seeking immediate relief from a national economic crisis that has slammed budgets in big cities, suburbs and small towns. Responding to an informal survey by msnbc.com, many mayors called for a program in the style of President Franklin D. Roosevelt's Works Progress Administration to put people back to work and rebuild neglected roads, bridges and schools.
The economy was by far the most frequently mentioned problem, and fixing the nation's infrastructure the most frequently mentioned solution.
Msnbc.com queried more than 1,000 mayors by e-mail just after Election Day, seeking their top two suggestions for the president-elect's "to do" list. They have a lot to say.
We heard from 205 mayors in 48 states and Puerto Rico, ranging from big cities such as Phoenix all the way down to tiny Creedmoor, N.C. (population 2,232). You can see their responses on our online map, or read all the responses in one text file. And you can read suggestions from our readers or offer your own ideas for the new president.
The Economy (97 mentions) "The mortgage crisis has ravaged my city, and we need help ASAP. $19.5 million has been allocated to R.I., however it seems that nobody knows how the funds will be allocated to each eligible community," wrote Mayor Charles D. Moreau of Central Falls, R.I., population 18,928.

Infrastructure (75)
"If there is to be a new economic stimulus package, IT MUST BE TARGETED TOWARD INFRASTRUCTURE," said an emphatic Mayor Andrew Halverson of Stevens Point, Wis., population 24,551. "We could accomplish two goals simultaneously as a nation: 1. Put people to work in good paying jobs, and 2. Fix what is simply the greatest 'silent crisis' facing this country: our roads, bridges, water systems, as well as our sewer systems. Not to mention the need for new school buildings as well.
Let's create a 21st century WPA that not only stimulates the economy but produces long term solutions at the same time. What are we going to do with another check besides pay down personal debt the country already owes. Let's stimulate and build at the same time. That seems to me to be a good use of $300-400 billion." Taxes, budgets, unfunded mandates (49)
"The biggest problem facing all mayors is EPA's non-funded mandates," wrote Mayor Bob Armstrong of Defiance, Ohio, population 16,465. "Each city's citizens' water and sewer rates will be at a level where some will not be able to pay. Mayors to do list check yours

They will never get it that Bush did this on purpose and does not care about average Americans, our America, or our failing infrastructure. His concern is and has been the wealthy and his new version of America he has been emplacing!
The Bush created Mortgage crisis: The number of homeowners caught in the wave of foreclosures in October grew 25 percent nationally over the same month in 2007, data released Thursday showed. More than 279,500 U.S. homes received at least one foreclosure-related notice in October, an increase of 5 percent over September, according to RealtyTrac Inc. One in every 452 housing units received a foreclosure filing, such as a default notice, auction sale notice or bank repossession. More than 84,000 properties were repossessed in October, RealtyTrac said.

A nasty brew of strict lending standards, falling home values and a tough economy is filtering through the housing market. By the end of the year, the company expects more than a million bank-owned properties to have piled up on the market, representing around a third of all properties for sale in the U.S. Check out the top 10 foreclosure States! see where your State stands

Meanwhile Government needs rise as jobless woes increase

The number of Americans filing new claims for unemployment insurance last week surged to the highest levels since the wake of the Sept. 11, 2001, terrorist attacks, and the number of people continuing to collect benefits rose to a 25-year high, the government said Thursday. The U.S. Department of Labor reported that initial filings for state jobless benefits reached 516,000 for the week ended Nov. 8. That's the highest total since the week ended Sept. 29, 2001, two weeks after the attacks against New York and Washington, when 517,000 initial claims were filed.

Economists surveyed by Briefing.com expected 479,000 claims. This week, jobless filings increased by 32,000 from the previous week's revised figure of 484,000. Last year, the figure stood at 338,000. The report is troubling because many economists expected jobless claims to hold from the week prior, according to Andrew Gledhill, economist at Moody's Economy.com. "The labor market is deteriorating more rapidly than previously thought," he said. Jobless claims highest since 9/11

I hate to keep being the bearer of bad news as I have been for years now and no one has listened. This is no surprise. It was purposely created and it is just beginning. The timing is no coincidence either! The Republicans are against it but remember what worked for FDR the WPA "works progress Administration!

The WPA was Franklin Roosevelt's response to massive unemployment during the Great Depression of the 1930s. It put more than 8 million Americans to work before the program closed when World War II drove unemployment close to zero. It helped people save their homes and feed their families in the short run, but the work they did benefited the United States long after the Depression ended.

The WPA renewed the country's infrastructure. Thirty years into the 20th century, with automobile use exploding, drivers in the United States still faced a road and bridge network dating to the 19th century. Farmers mired in the mud, salesmen and truckers made long detours to cross rivers. The WPA built farm-to-market roads in every section of the country. A WPA can work again

The conditions that will greet President-elect Barack Obama in January are hardly optimal. Every day seems to bring more bad news for the transition team. The Dow keeps falling. The auto industry is failing. Pakistan seems shaky. Iran is reportedly testing more missiles. Correspondents in our 11 Patchwork Nation communities seem to understand the hand that Mr. Obama has drawn is a tough one. Yet when they’re asked their thoughts on the future, the most commonly expressed feeling is one of cautious optimism – an idea that things may get better, but it will take time. If those feelings are shared by most Americans, it may be a gift to Obama. Obama faces tough issues but maybe a favorable Political climate

* Just remember, I have been saying it for years now but remember who got us into the Depression in the Thirties, who got us out of it, and ultimately that it took world war two to get us out of it. One final reminder! I keep telling you that Bush did this all on purpose, the timing is no coincidence, and his endeavor for years was to create a Forever war to Rebuild the new order America he wants and at this point Obama will have to deal with it!

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