Looking Glass Economics

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So far austerity isn’t working out too well for Britain and Germany. But how about America? How will it work out here? Well, as you’ll recall, Goldman Sachs thinks the Republican budget cutting plan would reduce economic growth by two percentage points. Mark Zandi of Moody’s Analytics figures the loss at 0.5 percentage points this year and another 0.2 next year. Economists at the Center for American Progress estimate the cuts would lead to nearly a million jobs lost. Steve Benen is nonplussed:

How is it this isn’t at the heart of the debate over the budget? How far off track is the public discourse when an entire chamber of Congress, in the midst of a jobs crisis, approves a plan to make the crisis much worse, and this is considered only tangentially relevant?

I just spent the past hour on a call-in show out of New Orleans, and it was pretty clear that the callers didn’t think too highly of my claim that income distribution depends not just on the economy, but also on deliberate political decisions. And I admit that it’s a hard point to get across in a concrete way. But how much more concrete could our current situation be? Republicans — and, unfortunately, some Democrats too — are pushing for an economic austerity plan that will keep unemployment high and the job market loose. The result is downward pressure on wages, which keeps middle-class incomes stagnant and corporate profits high. This benefits the executive and investor class, and while it’s a shortsighted benefit, it’s a benefit nonetheless. And it’s not thanks to globalization or returns to education or anything like that. It’s due to a deliberate political decision that favors the rich at the expense of everyone else. That’s as concrete as Hoover Dam.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

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