Group items tagged

It's important, yes, and must be addressed. But by a wide margin, it's not the nation's most pressing economic problem. That would be the widespread and persistent joblessness that has plagued the labor market since the Great Recession began in 2008. Almost 14 million people - 9.1 percent of the labor force - were officially counted as unemployed last month. But that's just the tip of the iceberg. There were almost 9 million part-time workers who wanted, but couldn't find, full-time jobs; 28 million in jobs they would have quit under normal conditions; and an additional 2.2 million who wanted work but couldn't find any and dropped out of the labor force. If the economy could generate jobs at the median wage for even half of these people, national income would grow by more than 10 times the total interest cost of the 2011 deficit (which was less than $40 billion). So anyone who says that reducing the deficit is more urgent than reducing unemployment is saying, in effect, that we should burn hundreds of billions of dollars worth of goods and services in a national bonfire. We ought to be tackling both problems at once. But in today's fractious political climate, many promising dual-purpose remedies - like infrastructure investments that would generate large and rapid returns - are called unthinkable, in the false belief that they would impoverish our grandchildren. Yet there are other ways to attack unemployment that could garner bipartisan support. Perhaps the most promising is a payroll tax holiday.

In the last few days, the conservative movement has formed its response to Occupy Wall Street. The mere fact of conservative opposition isn't very surprising - obviously, conservatives aren't going to love a left-wing movement filled with counterculture types assailing the rich and big business. What's more interesting is the nature of the conservative response. There is hardly any direct intellectual engagement or forceful restatement of pro-market principles. Instead what we see is a series of evasions.

While we have the illusion of choice in our politics, the only real consistency in policy-making is Washington's commitment to war and oil, and increasingly often, war for oil. Libya was the oil dealer to Western Europe, but the market for oil is global. And oil is the prize, not democracy. This is …

Why the market's rate of return-and your nest egg-may never recover