We are in what the Center for American Progress has called a "labor market free-fall." The economy shed 524,000 jobs in December, the 12th month in a row of job losses. The unemployment rate spiked half a percent to 7.2 percent, and 11.1 million workers are unemployed, well above expectations. Over the past year, the economy has lost 2.6 million jobs—more than in any year since 1945. If nothing is done, the Economic Policy Institutes estimates that more than 5.5 million jobs are likely to be lost during this recession unless a major job-creating stimulus plan is enacted.
We live in a global economy where corporations have little loyalty to
maintaining decent paying jobs in the United States. Failed policies of
corporate welfare and tax subsidies to the already wealthy do little
but accelerate job flight and growing economic inequality.
Promoting a growing economy requires a combination of key policies, including:
According to The Wall Street Journal, "Fed and Treasury
officials have identified the disease. It's called de-leveraging, or
the unwinding of debt. During the credit boom, financial institutions
and American households took on too much debt." But let's not buy into a false equivalence of "financial
institutions" and those "American households" borrowing beyond their