Two days ago Hastings voted NO on the extension of unemployment benefits. Either he lacks basic knowledge of macroeconomics or he is in lockstep with the Republican Policy Committee. The motive of the RPC is to cripple our nascent economic recovery in order to get back into the driver’s seat and return to the middle-class squashing policies of Bush.
The headline for my letter to the editor in today’s paper is “Replace Hastings with Clough”. While I am not sure that my economic views are completely in sync with those of Jay Clough, I do know that he is capable of reading a report by the Council of Economic Advisors and making something of it. That is improvement enough.
Another thing that isn’t clear in my letter is that I actually do believe in capitalism, completely. Capitalism is the most efficient known mechanism for organizing production and distributing product. But, it is not perfect. Every tax expenditure, every regulatory loophole, every special favor, every unbid contract and practically everything else a corporate lobbyist is after when meeting with a Congressman is aimed at subverting the awful power of the market system. If you want capitalism to work well, you ought to elect a representative who will guard against undue corporate influence.
Business cycles are a characteristic of unfettered capitalism. When the trough of the business cycle combines with the bursting of an investment bubble, the entire economy screeches to a halt or, as it’s been described, careens into a ditch. That is why the federal budget should act as a counter-cyclical force, protect jobs from being lost, provide incentives for hiring and buffer inevitable job losses with unemployment payments.
