Breaking … WSJ Discovers Lack of Demand is behind Weak U.S. Economy
Posted: July 18, 2011 Filed under: Barack Obama, Domestic Policy, Economy, Surreality, The Great Recession, U.S. Economy, U.S. Politics, unemployment, voodoo economics | Tags: consumer demand, economics, Economists, economy, Federal spending cuts, government stimulus, jobs, Keynes, unemployment, Wall Street Journal 16 Comments
Via Andrew Leonard at Salon, the Wall Street Journal today reported the results of a survey they conducted with 53 economists:
In the survey, conducted July 8-13 and released Monday, 53 economists—not all of whom answer every question—were asked the main reason employers aren’t hiring more readily. Of the 51 who responded to the question, 31 cited lack of demand (65%) and 14 (27%) cited uncertainty about government policy. The others said hiring overseas was more appealing.
Only the conservative WSJ, the President, and Congresss could be surprised by these results. I’m not sure who these 53 economists were, but I think they must have been rather conservative, because the survey found that most did not think the government should do anything more to stimulate the economy.
Despite their forecasts for slow growth and an elevated unemployment rate, the economists aren’t in favor of further action either by the Fed or the federal government. Forty-one economists in the WSJ survey said the central bank shouldn’t pursue another round of bond-buying aimed at reducing interest rates, and thirty-eight said another round of fiscal stimulus shouldn’t be a part of any deficit-reduction package.
Economists added that they hope that as conditions begin to improve, albeit slowly, consumers will become more optimistic. “For whatever reasons, in addition to discrete headwinds, I think we’ve taken a hit to animal spirits and as those headwinds fade sentiment will revive,” said Stephen Stanley of Pierpont Securities. “Optimism can be self-sustaining, but pessimism can also provide a persistent drag.”
If any of the economists the WSJ talked to mentioned the possibility that the government itself could create jobs and thus stimulate demand–as FDR did the last time things were this bad, the WSJ did not report it.
Andrew Leonard crows:
what could be more obvious, even in the absence of rigorous training in economics? In the absence of demand, businesses will refrain from ramping up production and adding staff — no matter what employers think about the future regulatory climate. To prime this pump, to rev up this engine, to get the “delicate machine” working properly, the first focus for economic policymakers should be figuring out ways to boost demand.
Wouldn’t the best way to do that be to create jobs? Even Andrew Leonard doesn’t mention that. It seems ass-backwards to me to talk about getting consumers to spend more in order to get companies to start hiring. How can consumers spend more when many of them are unemployed? Maybe Dakinikat can explain this to me.
Anyway, it’s pretty amazing that the WSJ is admitting we have a demand problem. Now if only they could convince President Obama…
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these people JUST figured this out? ARGH!!!!! and of course, they are sufficiently vague about what to do to kick it in high gear …. wtf does 60 years of Economic theory and empirics say you idiots!!
DAK,
Please translate the news, albeit it sounds as if we are going down hill with no brakes… 😥
It means even the stupid ones know that what’s needed is a big ol’ government stimulus but they’re not willing to say it.
The Stimulus Package didn’t work because the Rich horded the money for themselves, gave Million dollar bonuses and dried up the credit access to small businesses. With the housing market in the skids, small businesses can’t access their equity lines of credit that they would use in previous days. With the news that that Warren is out because the Republicans were blocking her, it will only make things worse.
Funny, but Republicans and Obama feel fine taxing and Chopping benefits (that they paid for; Social Security and Medicare), but protect the RICH to no end.
I said it then, I say it now: The Stimulus, and the Car fund SHOULD have been excusively used for AMERICAN made items and cars. (at least 50% American companies…I know US owns less and less these days…..)
Obama made the entire thing too tax relief heavy too. They needed to just give money to states to spend for jobs … whatever jobs.
Hey WV, you don’t mean the “rich” you mean “job creators.” 😉
Jon Stewart – Daily Show – Debt Crisis | Mediaite
And when the 2nd act gets posted, I will link to it as well…great bit about reaching the bullshit ceiling…
Okay, here is the link to the National Bullshit Ceiling:
Armadebtdon 2011 – National Bulls**t Ceiling – The Daily Show with Jon Stewart – 07/18/11 – Video Clip | Comedy Central
Once again, Elizabeth Warren, the woman is passed over, and Obama didn’t fight for her!
Debate Over Consumer Agency Continues as Obama Taps Cordray to Lead
Hey, you jerks want me to buy things? Then GIVE ME SOME MONEY, dammit, so I can buy things – like food and clothes. And get your paws off my Social Security – which isn’t adequate as is.
Years ago, it seems, my solution to the “lack of demand” crisis was to give every voter $100,000. I still think that would have cost less in the long run and worked better than this garbage they’re going to hoist off onto us.
Imbeciles. So invested in their first principles, they refuse to see the forest OR the trees. They don’t question their premises (sort of like, Obama never questions whether being The Great Conciliator is really a worthwhile goal, seeing as how we have a massive and growing population of poor and needy and undereducated and unemployed and sick and tired and old). They can NEVER be wrong.
OMG, things are going to get so much worse.
Yes, close to 50 million people without insurance and 15 million out of work wasn’t enough for them, they want more misery on the streets. Mean while the MSNBC cheerleaders are organizing Free Clinics because they know Obama isn’t going to do anything for the working people and more people are losing their insurance and more simply can’t afford it after the premiums sky rocketed beyond reach. Now GOP/Obama are after Social Security, Medicare and Medicaid.
Yes, but do you think anyone is going to do the right thing? I doubt it…I have become so pessimistic about the economy and those politicians in DC that even this…
doesn’t raise my hopes up.
They don’t just want to fire our asses from jobs, but the health care thing shows they want to fire us from the planet earth. They want us dead damn it we cost too much.
Yep — Soylent Green, time: the year 2022 — over population (check), oceans dead (almost there), jobless — environment shot to hell, women treated like furniture (check), infrastructure is crumbling, the old and useless used as for food — ah not yet.
One needs a job and a bit of time on the job before one feels comfortable enough to spend MONEY.
With 0bowma and other politicians pumping out so much hate aimed at old folks, retired folks, poor folks — the trend may be to avoid spending.
We are all under the bus.
Has anyone seen Senator Coburn’s plan to cut the deficit? Talk about draconian! He’s calling for a nine trillion dollar cut (not including another two trillion plus that will come from cutting SS and Medicare). His plan includes a practically minute one trillion dollar increase in taxes and even that has pissed off Grover Norquist. Under Coburn’s plan, living in shanty towns and begging for food will be considered middle class.
Colburn doesn’t care.he is rich 🙄