State, Local Governments’ ‘Secret Austerity’ Maintaining Recession

Ben Polak and Peter K. Schott make a compelling argument in the New York Times that this recession differs from the preceding two downturns because of under-employment by state and local governments:

Without this hidden austerity program, the economy would look very different. If state and local governments had followed the pattern of the previous two recessions, they would have added 1.4 million to 1.9 million jobs and overall unemployment would be 7.0 to 7.3 percent instead of 8.2 percent.

Why is this happening? One possibility is that we are witnessing a secular change in state and local politics, with voters no longer willing to pay for an ever-larger work force. An alternative explanation is that even though many state and local governments are constrained not to run deficits, they can muddle through a standard recession without cutting jobs. But when hit by a huge recession like that of 1981 or the latest one, the usual mix of creative accounting and shifting in capital expenditures cannot absorb the shock, and jobs have to go.

Romney Burdened by Bush Legacy

Mitt Romney is not a great candidate; Barack Obama is a better one. But without the Bush legacy, Romney would be leading this race. His problem is that except among staunch conservatives, Bush has so hurt the GOP’s brand that Romney doesn’t look like the fresh economic fix-it man that Republicans want to portray him as. Instead, it’s all too easy for Democrats to paint him as George W. Bush the 3rd, just as they painted John McCain as George W. Bush the 2nd.

— Peter Beinart, writing in the Daily Beast.

Wrong Jeb, Your Brother Did Not ‘Keep Us Safe’ – Not on 9/11, Not When He Invaded Iraq Based on False Intel and Not When He Crashed the Economy on His Way out of Town

At the Republican National Convention in Tampa last month, Jeb Bush diverged from the prepared remarks on his teleprompter and attempted to rewrite the history of his brother’s disastrous years as president:

JEB BUSH: I’ve been so blessed to be part of a family that has committed its life to public service. My grandfather and father have been incredible role models for me and served our country honorably. And my brother, well, I love my brother. He is a man of integrity, courage and honor. During incredibly challenging times, he kept us safe. So Mr. president, it is time to stop blaming your predecessor for your failed economic policies. You were dealt a tough hand, but your policies have not worked.

With the exception of his assertion that he loves his brother, nearly everything in Jeb’s statement is a lie — and the biggest lie is his assertion that George W. Bush kept the nation safe. A few weeks before the attacks on 9/11, for starters, George Bush dismissed and then ignored a warning from the CIA that Osama bin Laden was determined to strike inside U.S. borders. When the attacks came, 11 years ago today, the president allowed himself to be ferried from one secure spot to another, leaving command and control of the United States in the hands of his recklessly incompetent vice president, Dick Cheney.

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