I was watching the Sacramento City School Board discussing their impending budget crisis.
Like newspaper writers, they discuss the economic crisis as if the crisis is a neutral act, or as if a natural act. Like rain or snow. The school budgets are a disaster not because of some natural phenomena. The crisis was created by people and policies of our government and of the financial system.
"The reality is that we got into this mess because of an overwhelming excess of greed and stupidity on the part of the Wall Street bankers and the people deciding economic policy. We continue to face excessive rates of unemployment because of a continuing reluctance to pursue policies that can restore the economy to health.
Very briefly, one of these policies is more government spending to create jobs. The government can employ people directly; it can give companies incentives to employ people, and it can give tax cuts that give people more money to spend. Mix and match in large enough quantities and we will get the unemployment rate down to more acceptable levels."
Dean Baker
Director. Center for Economic and Policy Research.
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