Web Letters: Desperately Seeking Stimulus

By Barbara Ehrenreich

January 22, 2008

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  • Ask yourself, Why does the economy need another stimulus package when we are already funding two wars, and tax breaks for the rich are still in effect? A war economy has always provided economic stimulus and it is usually the after-war period that needs stimulus. You should come to the same conclusion as many others, that this recession is proof that tax breaks for the rich as a stimulus package do not work. Likewise, the Iraq war, with costs in the trillions, was totally unnecessary and was a fraud perpetrated on the American people in order to transfer wealth upwards to the wealthiest corporations and to seize control of Iraqi oil as part of empire building.

    We should take a page from this Administration's playbook and do the opposite of Republican policies, which includes governing the country for the benefit of all its citizens and not just a few. The Republican proposed stimulus package is more of the same and it continues the destruction of our currency. Instead of negotiating a solution that is good for the country, the current Administration will refuse to talk about anything but their self-serving policy because they hold power. Our nymphomaniac junkie economy will suffer withdrawal ultimately because it doesn't want to be oil's bitch anymore.

    Bill Hague

    Hoboken, NJ

    01/23/2008 @ 2:29pm


  • As one "on the ground" in the "real economy," I can attest to the truth in Ms. Ehrenreich's observations and conclusions. The once-middle class, former bastion of sensible savings plans, has been conned by the Corporate American Advertising Machine into spending its way into prosperity. Now, we debt-ridden declining middle-class citizens are being pushed down in to the realm of "the poor," so that money sloughs off us, too. The cost of living has risen and our salaries have stagnated, the amount we can contribute to our 401-Ks (since employers stopped providing pensions) has fallen and the amount we must pay for such staples as milk and gasoline has skyrocketed. We'd rather ditch the gasoline requirement entirely, but the places where we've been told it's best for us to live (for the sake of our children's quality of life and education) aren't served by public transportation, except for the older Northeastern urban metro areas. And our employers require us to work such longer hours (to make up for all those layoffs), so unpredictably, that we're unreliable as carpool partners. This article tells the truth. Remember Nicholson in A Few Good Men? "You can't handle the truth!" Unfortunately, we have to handle this truth.

    That said, even my clitoris laughed a few times during this article. One question: If the economy "starts acting like a nymphomaniac junkie in withdrawal," does that mean it'll be screwing us even worse than before? I just want to know because we'll have to handle that truth, too.

    Trude Diamond

    Tampa, FL

    01/23/2008 @ 11:03am


  • Another outstanding column by Barbara Ehrenreich! We will need all her suggestions to avert the humanitarian disaster that will indeed accompany this financial debacle.

    This will not be an economic recession, that is just a symptom of a much more malevolent imbalance in the structure of the economy. What we are seeing is a credit collapse that will starve our economy of cash, and there's really nothing we can do about it. Adding insult to injury is the degradation of our productive economy into a service economy that adds little or no value at all.

    We have a Health Care Industry that consumes 15 percent of GDP whereas other nationalized health care systems consume 8 percent or much less. Our financial service industry accounted for over 30 percent of the profit for the S&P 500, whereas twenty-five years ago it was just 6 percent. The Military Industrial Complex takes 9 percent of the economy and produces no real goods.

    Between just these three sectors over 20 percent of our GDP is waste, fraud and abuse. Then we can start talking about CEO, CFO and CIO compensation.

    But back to the credit collapse. The debt-based fractional banking system can only survive with ever-increasing debt, but the consumer is tapped out and business is cutting back. With no new debt being written, a tsunami of bad loans, systemic risk model failure and mistrust between banks, the die is cast, a meltdown that will shake our country to its core.

    Is there a way out? Sure, but it is medicine we will only take as a last resort, if then.

    First we fire the Federal Reserve, install a central public bank and use only government-created money, money that bears no interest payments, a "greenback monetary policy." Then reregulate the financial sector.

    Second, we provide single-payer health care to all Americans. This will relieve states, counties, cities, industry and small business of healthcare costs, leaving jobs intact and making our products more competitive. It will also relieve people who pay for their own healthcare and insure some 47 million that currently go without, more money left in the system.

    Third, we slash the military budget by half, using those funds for infrastructure projects.

    Fourth, we declare an energy emergency whereby automakers are ordered to reduce engine sizes and weight immediately and introduce within three years battery electric and hybrid battery electric vehicles. These vehicles should get at least quadruple our fleet average eliminating our foreign oil dependence within fifteen years.

    Fifth, we add tariffs until we are below a 2.5 percent trade deficit.

    Sixth we fix our income tax system and begin by raising rates, eliminating loopholes and declaring capital gains and dividends personal income for the mega-rich. Then we go after corporations for loopholes, set asides, off-shoring and all other non economic BS they currently practice.

    Without these measures we could become another Japan: years of deflation and a stalled economy.

    Michael McKinlay

    Hercules, CA

    01/22/2008 @ 5:21pm


  • The feminine perspective certainly adds a new dimension to economic theory. However, economic stimulus has traditionally been applied in such areas as public works. The building of bridges, buildings, dams and roads provides contractors with business,; they buy the materials and equipment to do the job. They also employ the workers who spend their money for food, housing and other necessities. Let's not forget the retail stores and their employees who supply the products or the medical personnel who keep them healthy. Indeed, a single-payer health plan would also stimulate the economy. In other words, a stimulus plan must benefit every level of society. It has to have a ripple effect, or one could say it floats all boats.

    It would provide good-paying jobs, that give people the money to support the American market. No jobs, no money--and no American market. Call me boring, because I will say it again. You must have tariffs in place to protect American industries, farms and workers, and the American market. You must have regulations that control the insanity of private enterprise, protect the public health and insure the quality of American products. You cannot control what another country does with their exports. You can control what is produced in your own country.

    "Free trade" reduces workers in every country to the lowest level. National economies can develop every country for its citizens.

    Pervis J. Casey

    Riverside, CA

    01/22/2008 @ 4:45pm


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