The Problem Is Not the Deficit, It’s Jobs
June 3, 2011 Leave a comment
Given the job situation, Obama would be crazy if he negotiates anything more than a nominal reduction in the deficit. Deficit equals stimulus, deficit reduction means a slower economy and less employment. No wonder the Republicans are fighting hard for the latter. It’s that simple–the Republican are really closet Keynesians.
Even if the payroll report shows improvement, the employment situation remains grim. There are 6.955 million fewer payroll jobs now than before the recession started in 2007 with 13.7 million Americans currently unemployed. Another 8.6 million are working part time for economic reasons, and about 4 million more workers have left the labor force. And 5.84 million have been unemployed for six months or more. Numbers to remember.