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There may not be an official recession, but as of February 2008, 1.38 million workers had exhausted their basic benefits -- more than in 2002. But apparently not enough to make Washington act.
I certainly don't claim to have the answers on how to fix an economy that is a) in a recession for many workers, and b) moving toward something like a state of permanent recession for some.
Doing something beats doing nothing
But I don't think not having the perfect solution is a reason not to do anything at all. Simple things that have worked in the past and that don't require a huge, permanent expansion of government smack you right in the face if you just listen to the news.On March 20, while I drank my morning coffee, radio news reports of the Federal Reserve's intervention to save the financial markets from the effects of a collapse by Bear Stearns alternated with stories of the very real risk of collapse for a chunk of Interstate 95 outside of Philadelphia. A rotted support column had forced the closure of two miles of highway when engineers made emergency repairs. Turns out the Pennsylvania Department of Transportation had known of a crack in the pillar since October but didn't know that the problem had grown to become a crack 6 feet long and 2 inches wide. Luckily, a structural engineer who passed by the support on his way back from lunch saw the crack, and that led to the highway's closure.
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As I heard the stories, I thought of all the money and energy being poured into saving the financial markets -- a good thing. And the decay of our physical infrastructure. The effect of that decay on the jobs that depend on that infrastructure. And of the role that this infrastructure plays in increasing our economic growth and productivity.
And I also remembered the congressional debate over the stimulus package. Some members of Congress had proposed using taxpayer money to build and repair roads and bridges on the argument that such spending would produce jobs and was on its own a good thing. That proposal got voted down in the face of strong opposition from the White House. Wait for the stimulus package to take effect.
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Why's unemployment so low?The unemployment rate is below 5%, low for such a seemingly weak economy. There are two possible reasons, says MSN Money's Jim Jubak: A lag in the official numbers and changes to traditional ways we work full-time and part-time jobs.
Meanwhile state governments are facing huge budget shortfalls caused by the recession -- oh, I'm sorry, slowdown. States are narrowing this gap by raising taxes when they dare and cutting spending on frills and frippery such as education and roads.
I ask you, is this any way to fight a short-term recession -- let alone the permanent recession that so many families feel in this country?
Continued: Developments on a past column
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