Obama Can’t Fix the World Economy

It is most unfortunate that we’re in the midst of an ugly election right now. Republicans, who have been doing everything they can to obstruct Obama’s every move for four years, will spend the next two months trying to blame him for the lousy world economy, and Obama is not to blame.

Revelation: (see title above) And neither can Mitt Romney.

The mess we find ourselves in now is the result of a complex of pre-Obama conditions he had no control over, and has little control over now. To review those conditions, banking criminality brought us an unsupportable housing bubble that, when it popped, left the country reeling with excess debt. This condition echoed throughout the world economy, resulting in vast losses of wealth and jobs.

Meantime, Europe had established a regional currency, the Euro, without establishing a central bank with the authority to make monetary changes, which left several countries up the creek. In addition, certain countries found themselves with nothing to hold onto after the crash because of their long history of fiscal irresponsibility. In the US, enormous government investments saved some crucial banks and industries, and an important but inadequate stimulus saved jobs. Europe, on the other hand, in the face of the same lack of demand that was causing our problems, moved directly to slashing government budgets and cutting debt on the grounds that their budgets needed to be brought under control, thus making everything worse, including problems here at home.

Republicans have been doing everything they can
to obstruct Obama’s every move for four years,
and will spend the next two months
trying to blame him for the lousy world economy.

But that’s only the beginning. New jobs, when they are available at all, are nothing like the old ones, leaving millions with wages not even adequate for average needs. The poor are worse off, as usual, with pay for full time work not even adequate to pull them out of poverty. The future will be worse, not better, regardless of who wins the election, because not only is there the downward pressure from jobs outsourced to the developing world, which are only slightly above slavery, but here at home, modernization and computerization are making vast numbers of jobs in all fields no longer viable. This trend is further worsened by the new generation of industrial robots that kill jobs wholesale. We will have few jobs for all these displaced people.

So it’s much worse than most people think, and politicians are paying no attention to the real future, unable to think beyond November 6th. More damaging though, is that if Republicans move into the White House, they will do exactly all the wrong things. This will make the mega-rich still more rich, and will create havoc with everyone else who will have inadequate control of their own lives. It’s difficult to see how we will avoid becoming a plutocracy, or a feudal state, where a few people have virtually all the wealth and the rest have nothing. The resulting loss of a competitive workforce because of Republican sponsored privatization of education would make it even worse.

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Published in: on 2012/09/09 at 11:55 am  Leave a Comment  
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