Ideology and Investment
By Paul Krugman
New York Times Opinion
Oct 26, 2014 – America used to be a country that built for the future. Sometimes the government built directly: Public projects, from the Erie Canal to the Interstate Highway System, provided the backbone for economic growth. Sometimes it provided incentives to the private sector, like land grants to spur railroad construction. Either way, there was broad support for spending that would make us richer.
But nowadays we simply won’t invest, even when the need is obvious and the timing couldn’t be better. And don’t tell me that the problem is “political dysfunction” or some other weasel phrase that diffuses the blame. Our inability to invest doesn’t reflect something wrong with “Washington”; it reflects the destructive ideology that has taken over the Republican Party.
Some background: More than seven years have passed since the housing bubble burst, and ever since, America has been awash in savings — or more accurately, desired savings — with nowhere to go. Borrowing to buy homes has recovered a bit, but remains low. Corporations are earning huge profits, but are reluctant to invest in the face of weak consumer demand, so they’re accumulating cash or buying back their own stock. Banks are holding almost $2.7 trillion in excess reserves — funds they could lend out, but choose instead to leave idle.
And the mismatch between desired saving and the willingness to invest has kept the economy depressed. Remember, your spending is my income and my spending is your income, so if everyone tries to spend less at the same time, everyone’s income falls.
Continue reading Time to Narrow the Target: It’s Not ‘Washington,’ It’s Rightwing Republicans
Tom Wolfe holds election rally at Aliquippa Elks Lodge
Tom Wolf, right, shakes hands with Beaver County commissioner Joe Spanik before an election rally on Sunday, October 26, 2014, at the Aliquippa Elks Lodge on Brodhead Road in Aliquippa.
By David Taube
Beaver County Times
Oct 26, 2014 HOPEWELL TWP. — Democratic gubernatorial candidate Tom Wolf visited Beaver County again on Sunday, calling the election a chance for voters to say what they are not and what they could be.
The York County businessman echoed a recent campaign statement that Pennsylvania’s job creation was the worst in the country since 2011, based on federal data, suggesting the state could capitalize on its port access as one economic possibility. He also repeatedly stated that residents shouldn’t take polls too seriously.
Speaking to 60-plus people at Aliquippa Elks Lodge 1221 on Sunday, he said the upcoming election is a chance to move Pennsylvania and the country in the right direction.
“If you want to look at Pennsylvania over the last four years, it’s really a clinical test of the last 40 years,” Wolf said. “What we’ve been told over the last 40 years is ‘The real world is an unfair place. Let that 1 percent take over, and they’re going to show us wonderful things.’
“It hasn’t worked,” he said.
Wolf has visited Aliquippa or Hopewell Township several times in the last few months, and Aliquippa Mayor Dwan Walker said Wolf’s third visit on Sunday meant he was now family. He visited Aliquippa Elementary School on Aug. 25 and the Aliquippa Junior-Senior High School on Oct. 13.
Continue reading Wolf Highlights Inland Port Infrastructure for PA Job Potential