Friday, June 03, 2011

How Conservative Will We Be?

The feeble US (and world) economy limps along flat lines. Jobs are still in short supply. Manufacturers are now laying the people off they hired in a moment optimism earlier this year. Home prices continue to slump as no one has the cash to buy.

America's political leadership is beating each over the head with talk of debt and default on Treasury Notes and Bonds. In short...we're fucked. The policy discussion holds absolutely no hope of job creation. The Republican idea that cutting spending and taxes will create jobs is fantasy. Obama and the Democrats are largely in agreement that federal spending must be cut, they are only fighting about how much and where government spending should be decreased.

Jobs are created because cash moves. Someone spends and someone gets hired. Government spending = cash circulation = jobs. The stimulus and bailouts of 2009 worked, that's why the economy didn't fall off the cliff into depression.

Conservative ideology holds that government is bad, therefore government spending is bad. The Democratic Party is conservative as are the majority of vocal, voting American citizens. Ergo, we are economically fucked.

The best American citizens can hope for is that Congress reaches an agreement with the White House to avoid default and we stay in our malaise for until early 2013 when a new government gets it's power. Worst case: The Tea Party wins the debate within the Republican Party and shuts the federal government down, defaults on US debt dragging the world economy into a depression. We can choose between conservative (and have a flat economy) or more conservative (and sinking into depression). Where is the left wing?

I can't answer my last rhetorical flash. The left wing has no power.