The Mellon Doctrine
Two weeks ago, Republican staff at the Congressional Joint Economic Committee released a report, “Spend Less, Owe Less, Grow the Economy,” that argued that slashing government spending and employment in the face of a deeply depressed economy would actually create jobs. In part, they invoked the aid of the confidence fairy; more on that in a minute. But the leading argument was pure Mellon.
Here’s the report’s explanation of how layoffs would create jobs: “A smaller government work force increases the available supply of educated, skilled workers for private firms, thus lowering labor costs.” Dropping the euphemisms, what this says is that by increasing unemployment, particularly of “educated, skilled workers” — in case you’re wondering, that mainly means schoolteachers — we can drive down wages, which would encourage hiring.
There is, if you think about it, an immediate logical problem here: Republicans are saying that job destruction leads to lower wages, which leads to job creation. – Paul Krugman
So let me get this straight… The GOP wants to CUT government spending and thereby CUT public sector jobs so the market will be FLOODED with workers who will be willing to take LESS money in a more competitive jobs market which LOWERS their labor costs…
So you might have a job but you will be paid less. How does this philosophy help the average working person and their family? It does not. The only entities these types of policies help are the corporations and the wealthy elite. This also PROVES that Republicans never believed that Reaganomics or “Trickle-down” economic policies would benefit working Americans.
I don’t need anymore reasons to not vote for any Republican who supports these policies. But for any of you who remain committed to this debunked theory of economics and continue to vote against your own economic interests (or not vote at all)…consider this another warning of how little respect the Republican party has for average working Americans as they continue to line the pockets of their corporate donors.
- Paul Krugman: The Mellon Doctrine (economistsview.typepad.com)
- The Mellon Doctrine (nytimes.com)
- How to Kill a Recovery… (bruceturnerjr5.wordpress.com)
- The Forgotten Millions (bruceturnerjr5.wordpress.com)
This entry was posted on April 1, 2011 by ablackmanjr5. It was filed under Are you paying attention!?..., Economics, I couldn't have written it better myself..., Politics, The TRUTH is the light (As Granny would say...) and was tagged with Employment, Government spending, Paul Krugman, Reaganomics, Republican, Trickle-down economics, United States, United States Congress Joint Economic Committee, Wage.