Thursday, December 11, 2008

How much will 2.5 million Jobs cost? – Republican Obstruction of the Auto Bailout

One news items requiring comment today is the Republican refusal to assist the auto industry. This ideological lunacy reveals how the Republicans simply do not understand economics in general, and this particular crisis in specific.

This is a demand crisis or, in other word, a crisis in consumer purchasing power. If we do not assist the auto industry with $14 billion, we will have to spend about a trillion dollars in stimulus to make up for the 2.5 million lost jobs. The republicans it appears don’t understand basic math either. Can you say Joe the Plumber?

If we lose another couple of million jobs in the next 6 months just in the auto industry alone, the ripple effect in other industries of further decreases in consumer purchasing power is just unfathomable. Can you say Herbert Hoover?

Government inaction at this time is absolutely unequivocally irresponsible!!!!

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