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Under
Bush, U.S. Economy Recovers, Unlike Workers
by
Seth Sandronsky
September
22, 2003
The
U.S. economy is now growing at a faster rate in 2003 than it was the previous year. Over half of the April-June growth was due
to war spending, made possible by foreign lenders.
But
the nation’s job market is not improving, with nearly 600,000 jobs lost this
year. Some economists call this a “jobless recovery,” economic growth after a
recession without new job creation.
On
Sept. 16, the Federal Reserve Bank kept the short-term interest rate the same
to try and stimulate the economy, while noting the weak job market.
The
Fed’s slashing of interest rates to lows not seen in a generation has not
spurred firms to hire new workers.
What
of Bush’s three tax cuts and the jobless trap?
“The Bush administration has pushed forward tax cuts that lead to deficits
while providing only a modest amount of stimulus,” wrote Joseph Stiglitz,
former World Bank senior vice president and chief economist, in the Sept. 17
edition of The Guardian of London.
The
U.S. jobless rate was predicted to remain at six percent through the end of the
year, said unnamed private forecasters cited in the Sept. 16 edition of the
Financial Times. Persistent
unemployment is a potential weak spot for the president.
Case
in point is Bush’s recent remarks on the 2.7 million manufacturing jobs that
the economy has shed on his watch. He,
his administration and some members of Congress are busy trying to shift
Americans’ eyes to the east.
For
example, the value of China’s currency is being blamed as the cause of factory
firms cutting jobs in the U.S. It is
worth noting that manufacturing as a part of the American economy has been in a
slow, steady decline since the war in Vietnam.
China-bashing
today misses this structural change by a mile.
Welcome to the politics of U.S. economics.
Bush
recently characterized the lack of job creation as a “short-term problem.” If he is wrong, then his popularity could
decline.
Retired
General Wesley Clark, former NATO commander in Europe and the most recent
entrant of the Democratic Party seeking the presidential nomination, knows
that. He has promised “to restore the
millions of jobs that have been lost.”
Some
three million jobs have disappeared since Bush became president. “From 1996 to 2000, the economy created more
than 3 million jobs a year,” wrote Dean Baker, an economist and co-director of
the Center for Economic and Policy Research.
Consider
this proposal for job creation. Now is
the time for a government-financed jobs program that pays a living wage with
full health care benefits to workers and their families.
There
are plenty of unmet and partially met human needs nationwide, plus a crumbling
infrastructure, to keep these new, decently-paid workers busy for a long
time. Moreover, this jobs program would
address the link between unemployment and imprisonment, with all the racial
disparities involved in America, incarceration nation.
I
think that many of the nine million people officially out of work, plus the 30
million workers whose hourly wages are $8.70 or lower, would back such a
government jobs program. With the U.S.
war budget for the next fiscal year almost $500 billion (nearly equal to the
federal deficit), now is the time to air such a proposal for popular feedback.
This
jobs program could be a part of the peace movement’s platform, with anti-war
activists lending their impressive organizational expertise.
Organizers
with United for Peace and Justice and Act Now to Stop War & End Racism
(ANSWER), please take note, and proceed accordingly as you work to build
opposition to the Iraq invasion and occupation with a big march in Washington,
D.C., on Oct. 25.
Churches,
community organizers and unions also have a vital role to play addressing the
national jobs crisis. Together with the anti-war movement, they can be a force
for organizing to create more social justice.
* Risky
Business: U.S. Borrowing And Foreign Lending
* In
California, The Ballot Box And The Market
* Globalize
That: Capital Flight to China
* In
US, A Job-loss Economy Emerges
* For
Black Teens, Jobs Crisis Worsens
* A
New Day for Affirmative Action?
* In
California, A Racial Wolf in Sheep’s Clothing
* In
U.S., Slow Growth, Excess Inventory and Mounting Debt