A Sacrifice! A Sacrifice!

Dean Baker:

In total, the economy has lost close to $1.3tn in annual demand as a result of the collapse of the housing bubble. This explains the economy’s weak growth and high unemployment. There is no simple way to replace this demand.

We can gather together a coven of market-worshipping Republicans and sacrifice all the workers and retirees we want, it still will not replace the demand gap. We can love the private sector as much as we want and it still will not make firms go out and invest and hire when they don’t see demand for their products.

A Sacrifice! A Sacrifice!

All of a Piece

I’m not sure how many times the Republicans have to say the same stuff, plainly and in modern English, before it begins to sink in to the minds of those in the media that they, the Republicans in Congress, want Obama to fail in his bid for reelection and to achieve that goal, they need the American economy to fail.

You, as a GOP House mover-and-shaker (aka Tea Klan fanatic), are faced with the newly rising popularity of Obama (e.g. he’s in the 50s for the first time in a while), the first positive news on housing starts in a long, long time (driven more or less entirely by huge demand for apartments, since vanishingly few folks can qualify to buy houses anymore, at least not considered relative to the bubble excess and the fact that home foreclosures are still relatively high), a suddenly more optimistic public attitude re: the economy, and none of your own GOP candidates for the nomination are exactly setting the woods on fire, and may well be instead burning down the house relative to your broader chances both up- and down-ticket come 2012.

All that considered, do you, the rank and file Tea Klan fanatic, feel comfortable handing that same Obama you want to fail a sure-fired way to boost the economy even more as 2012 rolls along? Or do you want to apply the emergency brakes? With this most recent nonsense, I think no sensate being could still deny that we have our answer.
Now, of course, there is some subtlety to their position. They don’t want the extension of this particular tax break because it a) doesn’t help their prime audience in any way (aka the 1%), because those folks either don’t draw traditional paychecks and/or said pay is a relatively tiny fraction of their entire portfolio, so they could care less and won’t notice either way b) it legitimately does help the broader economy and quickly since we’re in an aggregate demand slump and this is cash in the pockets of the 99% who actually create that aggregate demand in, uh, aggregate, and c) is a quick and relatively easy way to sand the gears of the economy, and they think they can sell it to their crazed idiocratic supporters through ever-willing conduits like FOXnews and the Wall Street Journal (The latter of which is already overboard) using such time-honored tools as goalpost moving and poison-pill additions. No one will ever know, and if they do, we can convince them to blame “Democrat leaders in the Senate.” Who, for once, have grown a pair and are doing their part to (rightly) hang this on the GOP. They even have a “Tea Klan tax hike” style meme going. It’s like they’ve finally gotten hip to the way the other side messaged in, oh, 1992.

But frankly this is a pretty simple calculation for the GOP. Braveheart and all the rest are just window dressing that, as usual, the MSM is lapping up. The real story, the one far too shrill to actually report: Anyone or anything getting in the way slowing the economy can kindly go die in the streets. Tax proposals benefiting the 1%: always welcome. Wedge issues that reliably bring this or that fractional percent of old white voters to the polls in November: always welcome. Anything that might actually help the economy and, by extension, Obama: forget about it. And they have.