How To Fix Unemployment (And The Deficit)

I have repeatedly said on this blog that the only way out of the current economic mess in this country is through massive job creation. But the Republicans, sounding like a broken record, insist that we can't afford to spend any money to create jobs (because the rich need that money in tax cuts). They go on to say that the cure for our recession and deficit is to abolish Medicare, cut Social Security benefits (until it too can be abolished), gut unemployment and education, and slash all other government programs (except those subsidizing giant corporations).

Of course that is the Republican "trickle-down" economic policy, and it is the reason we are in this economic mess in the first place. Continuing this policy will only result in further damage to the economy and even more job losses. A recession simply can't be starved to death, and it can't be ended by just giving more money to the rich.

The cure for our economic ills is not really all this complicated. My fellow blogger vjack, over at Red State Progressive, puts the solution into simple language that anyone can understand. Here is what he has to say:

In fixing the U.S. economy, we need a massivefederal jobs program and additional stimulus spending. Austerity measures will only cripple an already fragile economy like what we have seen in Europe.

As President Obama sells his jobs plan, it helpful that it includes measures to offset the costs of the plan. With that in mind, here are some fairly obvious ways that President Obama could more than cover the costs of even a massive economic recovery plan:

1. End the Bush tax cuts and tax the rich
2. Close corporate tax loopholes
3. End government subsidizes to big oil
4. End the wars in Iraq (for real this time) and Afghanistan, and bring our troops home from Iraq, Afghanistan, and Germany (yes, we've maintained a large military presence in Germany since WWII)

Not only would these steps more than pay for the sort of economic recovery plan we need, but they would shrink the federal debt considerably. And if someone wants to complain that this still would not produce the savings we need, I'd add significant cuts to military spending and marijuana legalization.

I agree.