Focusing on Jobs and Not Going Around in Circles about Deficits - Real Estate - Foreclosures

At last the discussions in Washington are focusing on jobs and not on deficit budgets. But the Republicans are pampering unfounded fears. What is happening is nothing unusual in a post recession period. Businesses have always grumbled against taxes and regulations. Why should business houses invest when their existing capacity remains unutilized?

The positive news is that after wasting nearly eighteen months talking about nothing but deficits at last the discussions are on the right track -focusing on jobs. But the bad news is that the Republicans, pinpointed in their inflexible views in what is blocking creation of jobs, is feeding the interests of the rich without any contact with reality.

The Republicans are one and all blaming Obama team for the tepid job growth because the business houses are fearful of expanding as they are apprehensive of regulations and increased taxes. It is not just the politicians who are voicing these sentiments - the conservative pundits are repeating it and the officials of the Federal Reserve are parroting it to justify their reluctance to even help the economy in a small way.

These claims are not supported by any evidences; whatever evidences are being presented are all false.

The prime argument for not implementing proper business policies is that the recovery after the recession has never been so sluggish ever. But a new paper submitted of Lawrence Mishel of Economic Policy Institute has discussed this at length and denied this assumption. For the past twenty years" jobless recovery" has been nothing new - rather it has been the rule. Job growth in the private sector following the Great Recession has been comparatively better than it was following the recession of 2001.

Important financial catastrophe has invariably been followed by periods of sluggish growth and this was nothing unusual considering the intensity of the 2008 shock.

The question being posed -is it not unnatural for business houses netting in huge profits and sitting on the cash without expanding and hiring? It is as it should be. Why should they expand when the existing capacity is not being fully utilized? Consumer spending has been badly hit by the bursting of the bubble and business houses are not feeling the need to add to the capacity they already have that is remaining unutilized.

Investment is intimately linked with the health of the economy and considering its ailing condition investment is continuing to remain shy. The business community is grumbling about weight of taxes and regulations but it is the usual tone -nothing more than the usual. Thus the fears of the Republicans are nothing but phantasm.

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