Jobs, jobs, jobs!!!

The only reason for employers to hire more workers is if they have more customers. But American employers have not had enough customers to justify much new hiring.  There are essentially two sources of customers: individual consumers and the government. American consumers — whose purchases constitute about 70 percent of all economic activity in the U.S. — still can’t buy much, and their purchasing power is declining. The median wage continues to drop, adjusted for inflation. And now their Social Security taxes have increased, leaving the typical worker with about $1,000 less this year than last. Meanwhile, many states are hiking sales taxes, which will hit the middle class and the poor hardest. And deficit hawks in Washington are contemplating additional tax hikes on the middle class. The only people doing well are at the top — but they save a large part of what they earn instead of spending it. And their savings go all over the world in search of the highest return.  It’s true that overall personal income soared by 8 percent in the final three months of 2012 compared with an increase of just over 2 percent in the third quarter. But this income didn’t go into the pockets of the middle class. It went into the pockets of people at the top. Wages and salaries grew a measly six-tenths of one percent.  The major reason the economy contracted in the fourth quarter last year was a large drop in government outlays — especially military spending, which fell 22.2 percent. The biggest cuts involved spending less on the military, the most bloated part of the government. But right now military spending is America’s only major jobs program. Cutting military spending without increasing spending on roads, bridges, schools and everything else we need simply means fewer jobs. Fewer jobs equals less consumption and slower growth. More jobs, better wages and faster growth should be the most important objectives now. With them, everything else will be easier to achieve — protection against climate change, immigration reform, long-term budget reform. Yet we’re moving in the opposite direction — following Europe’s sorry example of failed austerity economics. But austerity economics is a cruel hoax promoted by Ryan and the right, lead by 10% of those at the top who have enjoyed unprecedented prosperity while 90% of Americans have suffered the negative effects of their failed economic theories. America shouldn’t be fooled.