Dividing Half A Loaf

From a New York Times editorial:

"The focus on combating inflation at a time when the economy is clearly not overheating and when oil prices are retreating is akin to Washington’s fixation on spending cuts when the economy is weak. Both are a fundamental misreading of what the economy needs.

This misjudgment has led Congress and the Obama administration to pursue budget cuts without additional near-term stimulus, thus increasing the risk of prolonged stagnation or, worse, renewed recession."

Give this quote to every member of Congress and the administration. Read it into the record daily. Memorize it; its wisdom is as important as the restrictive pledges GOP law makers sign.

The quote is the open secret ignored by Republican leadership, trashed by its pundits, and never revealed to its voters, except as "failed" policy. Yet the GOP never explains how austerity will produce prosperity, or how capital will produce jobs when demand is flat and non-existent. Despite Republican insistance, jobs are not a give-back gift of the rich. Jobs are created by demand.

The GOP also ignores that capital is not longer tied to labor; it has its own instruments of production. Other than to repeat the word, "failed," the GOP offers no model, evidence, or facts to support their flawed and dishonest recovery plan.

In fact, they opposed the extension of the payroll tax cuts for the middle class and never comment on the largest income and wealth gap ever seen in American history.