OurFuture.org: High Unemployment Used to Be a National Emergency In 1983, Ronald Reagan's Washington regarded high unemployment as a national emergency. Today, with unemployment kissing 10 percent, Barack Obama's Washington scarcely seems perturbed. Why?
In 1983, when unemployment hit 10.5%, Washington was in a panic and it was considered a "genuine national emergency." Unemployment is just about as high today. But, DeLong points out, "Yet, unlike 1983, there is no sense of urgency in Washington. ... Instead, deliberations within the Federal Open Market Committee appear preoccupied with how best to apply the brakes."
Economist Brad DeLong says that D.C. insiders he knows tell him to calm down, that things are getting better. He thinks the problem is something else.
But whenever I wander the halls of Washington these days, I can’t help but think that something else is going on—that a deep and wide gulf has grown between the economic hardships of Americans and the seeming incomprehension, or indifference, of courtiers in the imperial city.
Have decades of widening wealth inequality created a chattering class of reporters, pundits and lobbyists who’ve lost their connection to mainstream America? Has the collapse of the union movement removed not only labor’s political muscle but its beating heart from the consciousness of the powerful? Has this recession, which has reduced hiring more than it has increased layoffs, left the kind of people who converse with the powerful in Washington secure in their jobs and thus communicating calm while the unemployed are engulfed in panic? Are we passively watching an unrepresented underclass of the long-term unemployed created before our eyes?
Workers in BMW's auto plants in Germany make twice as much as US workers in BMW plants who make $15 an hour. Oh and by the way German workers get 35 days of vacation AND decent healthcare.
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