Reading Between the Lines

Wake up, already

David Cullen March 6th, 2009

The government is us; we are the government, you and I.

–Theodore Roosevelt

How any American cannot see that we are in a such a pit of economic pain right now that it requires all of us to beseech– yes, beseech– our government to do far more than what it has so done so far (under now two presidents!) is beyond me.

Let me start by saying the whole argument that tiny government always trumps big government is facile. A country our size simply cannot exist in the modern world without a large, active government in place– but it should be one with controls placed upon it by an engaged citizenry informed by a free and vital press, just as our forefathers intended.

And to those who would say our “big” government got us into this mess by its sheer bigness, I would say, “Yes, it did. Not by virtue of its bigness but by virtue of its dumbness– specifically by taking away controls placed on the “free market” decades ago that were proven to work time and again… and by we the people keeping our ignorant mouths shut at the time.”

Of course, there is no getting around this is a global crisis we are in– but much of the worldwide problem we are now dealing with stemmed from similar actions taken abroad. And, yes, there are many other factors that played a hand– rising oil prices, massive energy and resource consumption by the emerging capitalist-communist giant once known as Red China and the booming democracy India, not to mention our prosecution of two wars requiring a huge outlay in material and the dedication of our greatest resource, those men and women serving in our armed forces.

Why am I so wound up today? Complacency is why. In my view, too many Americans are still acting like all we are dealing with is a little slowdown, a little course correction. Sorry, but we aren’t. This is the biggest mess we’ve gotten ourselves into since the Great Depression and if we don’t start really tackling it, it may yet end up a bigger mess than the Great Depression. Even more than the national debt that terrifies so many, the legacy of living through something like the 1930s is one I would not want to foist upon my kids.

Don’t take my word for it. Take the word of The Wall Street Journal, whose editorial pages are as pro-business and anti-big government as any on the planet not published by crackpots.

So what did the august Journal report today that got me so hot under the collar? How about this headline: Recession Job Losses Top Four Million. Did THAT get your attention? It sure as hell got mine.

The story itself, by Brian Blackstone, starts off with this grabber lede: “The U.S. economy continues to hemorrhage jobs at monthly rates not seen in six decades, a government report showed, signaling that there’s still no end in sight to the severe recession that has already cost the U.S. over four million jobs.”

Let’s see, how many attention-getters are in that one sentence: 1) hemorrhage jobs at monthly rates not seen in six decades; 2) no end in sight to the severe recession; 3) already cost the U.S. over four million jobs.



Cartoonist Walt Kelly (1913-73) said it best.

Mr. Blackstone goes on to report that “The economy has shed 4.4 million jobs since the recession began in December 2007, with almost half of those losses occurring in the last three months alone. And unemployment is lasting much longer. As of last month, 2.9 million people were unemployed for 27 weeks or more, up from just 1.3 million at the start of the recession.”

He noted that the unemployment rate shot up 0.5 percentage point to 8.1%–making it the highest since December 1983 and slightly above expectations for an 8% rate. What’s more, he added: “Some economists think it could hit 10% by the end of next year.”

Ten percent unemployment! By the end of next year! Not good news, not at all.

There is even more grim talk in this one report, including the expectation that consumer and business confidence will slide even further and if they stop spending, said an economist with Bank of Tokyo-Mitsubishi, “the economy cannot get going again.”

Seems to me there are just two things we can do and must do:

1) Spend money… if for some reason any of us have it to spend!

2) Demand that your U.S. Senators and Representatives actually do their sworn duty to you and everyone else by standing up with President Obama to ensure that as he keeps swinging hard to get us through this catastrophe, he will actually be able to hit some over the fence.

Or you can sit back and whine and complain about the big bad government. We shall see just exactly where that gets us in this time of crisis that demands nothing short of national unity and action, action, action.

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9 Comments to “Wake up, already”

1. Greg Gay Says:
   

   March 6th, 2009 at 4:25 pm

   Enough Keynesian dribble! I won’t argue one word with you about how bad the economy is, but throwing money at his has never worked in the past, and won’t this time. Do you want a $1 trillion dollar stimulous to work? Then cut corporate and personal taxes by $1 trillion, and you will start seeing signs of growth in 6 months.

2. David Cullen Says:
   

   March 6th, 2009 at 4:31 pm

   Greg,

   Thanks for writing in; however, I respectfully disagree and would argue that all the money spent to fight the Great Depression and World War II together ushered in the greatest economic expansion the U.S. ever saw– essentially proving Keynes was right, albeit under extreme circumstances.

3. Steve Myers Says:
   

   March 6th, 2009 at 5:10 pm

   Mr. Cullen,
   There you go again. Who’s whining? Our government can’t be trusted to spend $1 trillion wisely. Period. Keep up the yellow journalism and you’ll join the ranks of the unemployed. If you would RESEARCH the facts you’ll discover that we do best when we’re (you and I) not taxed for all we’re worth and we have the power and the freedom to spend our money rather than working for the government until May of each calendar year. Have a good weekend in the USA where we have freedom of speech and freedom of the press.
   Sincerely,
   Steve Myers

4. Bill Walther Says:
   

   March 6th, 2009 at 10:17 pm

   Hey David,

   Although I left the industry six years ago, I still follow things when I can. Having gone through a number of heavy truck cycles, I know the current situation is dire. And you’re right. This situation is unlike any we have been through in the last 40+ years. Not only is the whole economy in the ditch, but the financial sector is bankrupt. In past cycles, I always felt I understood the reasons, and that we would recover in a relatively short time. This one is different. The certainty of quick recovery is not there. I for one don’t know how long it will take us to recover. But I do know what got us in this mess, and repeating the policies of the past eight years will get us more of the same. It’s time the government gets in the game big-time and charge the economy with whatever fiscal strength it has. And a return to responsible regulation wouldn’t hurt either. And good luck selling that to the right-eous industry leaders who have driven the bus into the ditch.

5. David Cullen Says:
   

   March 6th, 2009 at 11:27 pm

   Mr. Meyers,

   Thanks for writing in!

   Just one more thing from me: Yellow Journalism has referred for over 100 years to making stuff up and reporting it as fact. You may think my opinions are all bunk, but that is what they are– opinions. A blog is an opinion piece; which is why I also welcome all opinions expressed to me here in a civil manner (as indeed yours are).

   I hope you too have a good– how about a great– weekend here in the USA– the greatest nation the world has ever known… and largely due to that very freedom of speech and freedom of the press you mentioned.

   And I sincerely hope you write in again!

6. David Cullen Says:
   

   March 6th, 2009 at 11:32 pm

   TO BILL WALTHER:

   Bill, how great to hear from you!

   I hope you are doing fantastically and I have to thank you for letting me know at least one person out there doesn’t think I am totally out to lunch…

   Drop me an email sometime; I’d love to hear about what you’re up to now.

   Very best regards,
   David

7. Thad Forester Says:
   

   March 9th, 2009 at 4:21 pm

   I find it funny that you think people should demand that their senators and representatives should stand with President Obama when he is pushing our country deeper and deeper into debt, from which we may never recover. He is using this crisis as an “opportunity” to expand government at a scale which has never been done before. It is private citizens, businesses, investors and a healthy banking industry that will have to lead us out of the recession, not the government.

8. David Cullen Says:
   

   March 10th, 2009 at 12:37 pm

   Chad,

   Yes, you read me correctly. I do believe that in this period of unprecedented economic turmoil– global recession plus banking/credit meltdown and burst housing bubble– that we do need our government– emphasis on “our”– to take the requisite massive steps to get us out of this mess… and that means spending, spending and more spending.

9. Fred Ruggiero Says:
   

   March 11th, 2009 at 4:36 pm

   I think much of the whining is due to the fact that, the folks that orchestrated this economic “perfect storm”, are the same folks that are in charge of getting us out.
   That fact alone is depressing!
   When you look at business, especially the auto sector, only Ford has a plan.
   I am curious as to why GM has not ousted their board.
   What is the perception you are exhibiting when you go to the Government for help, but have NO PLAN and have made NO CHANGES?!
   GM refuses to address the need to shed some of its weight.
   For instance, Pontiac and GMC need to go away.
   They should keep Opal and bring the line to the U S. Use the Pontiac / GMC dealer network for the Opal line. It is short sighted to sell off valuable assets to raise cash.
   I think they should keep Saturn and establish R&D to make that line their Hybrid vehicles.
   With regard to bailing out the auto manufactures I think it has to happen. GM and all the business that feed it would push unemployment to a point at which the government
   could not afford the unemployment benefits.
   SO… We could have a rule.
   No whining unless you propose a solution.

   fred

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