US Economics 101 – With Dean Baker & Maya Rockeymoore
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US Economics 101 – With Dean Baker & Maya Rockeymoore

welcome back to the point i’m your host
of my rocky more and i am pleased to welcome dean baker to sandy malcolm dean are you there be a shipping clerk i
tam well how are you reading hand-in-glove
list and dina sequestering shenanigans trails um… inaudible the question my guess is
more likely to see a very short period of sequestration but i i think the obama
administration credit with the proposes that william weld some sequestration cut that people
didn’t really feel alone be very angry about killed me delia
should stay in the sense of they’re talking about putting our
traffic controllers virtually to a lot of flight delay his coming back security
at the airport which people very very long lines over the phone lines and my guess is that very quickly the
republicans will come to the table and be willing to accept for something quite different so i think we’ll probably see that will
probably trickle-down effects of the day or two and uh… then will get uh… some very different tactics think they do you
think that the republicans will be stared into coming to the table you’re gonna get a lot of questions that’s coming across the board of
ministry for our you know people point out the upper income people
businesspeople loans there there’s not going to have to your point skills will
be on people coming and getting out of business trips
on his indication they can do with from waiting two hours of the security of air
force of using a lot of people pretty angry
and given that the whole thing is really pointless and they know that they never
when does the centenarian also so my guess since you will get the printer cable
pretty quickly seven-year entities for the guardian
uh… recently talking about and making the case as you ledoux time ask her to
do on many occasions and we actually need to be expanding the deficit mendes right now did you and tell and
lessons learned you know uh… this is what he thought
of old servitude builders omitted to both
parties have perpetuated we’ve had an ongoing deficit problem by the democrats
course like that that when the bush tax cuts because number of and i’ve also the
wars with the gals wasn’t a fan of republicans create this image of out of
control spending the reality is that we did not have
ongoing deficit deficit leading up to the collapse in two
thousand they were relatively modest two thousand seven was just over one percent g_d_p_
we could run a deficit that size with early forever one could argue which have
a balanced budget arguing chevy surplus but again he was in a crisis it was
something we could have done literally for ever uh… we got a large deficits because
economy collapse that meant big plunge in past elections we paid out more money for programs like
unemployment insurance other programs associate with uh… with uh…
supporting people lost their jobs and of course we do have a stimulus that too liberal erase the deficit to boost
the economy now thats that’s basically over dallas two
thousand nine two thousand and two thousand won’t be much paid to zero but
we learned thirteen there’s almost nothing there last uh… but we have a large deficit today
again because the economy is weak and that have become the state’s strong we
would have the deficits and if we cut that deficit worse slowing growth throwing people out of
work and i just don’t feel anyone the right mind would want to do that linden
we’ve seen from other nations that is not sods its course of action i saw the
note this week and lead is downgrading the united kingdom’s
credit rating and they have to see this austerity um… budget from temple but because they were in the u_k_ is
probably the best picture for fear because one peter if united kingdom has its own currency
other countries you don’t get a lease greasy had no choice they don’t have their own currency
advocate arkansas the big deficit arkansas cancers you know run large
deficits it you know a big if u_s_ dollars so it has to find a way to
finance that u_k_ has its own currency but they said no no no we’re going to be
responsible a conservative government the won the elections in two thousand
ten they decided to cut that spend a half tax increases bring the
deficit down and what it’s done is drawn the
country’s economy back into recession they every critic growth looks at the back in
a recession offered third time and it’s led to because the economy
contracted section of the deficits walkers perverse effect that you know
when you saw your economy um… that because more people out of
work to pay more than a point at which put too much in taxes and that the consequence uh…
consequence no moody’s is looking at that you can see here you know your your
debt situation which would that your television a growing and that’s why the
downgraded ten yet austin lead in the master of austerity has paint a solid of
course of action continues to play out here in america and we in
our last action sex and we just ask the secret is on who talked about the role of pete peters
center symbols in some sense and i handle my size now size role these
actors do you think that the conversation has been bought now we
lost this argument but we haven’t lost than you ever lost
it for the simple reason that you know that the programs that these people want
to cut social security medicare of your medicaid aiming to be hugely popular
programs across the board is not just you know probable liberals or democrats right popular among c party conservatives
republicans so they have to find some better ways to
do it that’s why we always coming up for the short convoluted schemes were going to have this super committee in an awkward down vote
you know no amendments is for that to try to find something at the
democratic way to get through measures that you know koch that you’ll just have
no popular support anywhere in the political spectrum so in terms of getting their agenda
brush gary d i think that you have a hard time but what is unfortunate if not
the officers discussion of how we can get people back to work to link that
that is the real crisis images incredible story we uphold communities
are being devastated you know families can restrict kids
properly and that you know if he really is an enormous hardship in this country
not to have a job and it’s uh… you know these people
were working for the economy collapsed or were not talking about that all we’re
talking about is how do we get the deficit down the notably the pure debate where are you want to get to g_d_p_
ratio should be in two thousand twenty resort or grab these people go to you on
this planet so dean and you’re the president now i
just made in the press and the united states he won the election her good
judgment on what happens when two and what kind of job creation program into
complaints you know we have a lot of infrastructure
needs this is something we quit should be addressing because you know
that the basic story here’s the private sectors not important people so usually you know when i had this discussions of conservative economist
another argument your polling shows away from the private sector and there’s
something to that windward near full employment if we go
back to two thousand seven employment for a half percent okay
i want this huge infrastructure projects well that rightly say was that can be a
better use of the money that the private sector on this case the crime issue so you know dressed in a lot of
infrastructure needs building our infrastructure for the next forty fifty
sixty years frustration infrastructure that was building the new deal i actually talked about that at the top
of that they are not you know when our tasting of our show this weekend last week in the week
before it has been uh… dot called third world america and i have a friend who travels extensively around the
pacific rim and he says whenever he comes into l_a_ acts he feels like he’s
flying into a terrible country the infrastructure is so bad and so when you make the argument in a
case that you know infrastructure could be one way of promoting growth it makes
a lot of sense to me well i think it makes out also you know
people talk about education we’re cutting death we should be building up
to you know it’s it’s not easy unit it improved education system in the sense
that you know we have a lot of people from disadvantaged backgrounds but you know i mean for months to come to
the tune for that we know if your parents were employed kits at what they do real poorly in
school you know that they’ve been unstable households families are moving
that’s really bad feeling in second grade you’re in school for two months
when he moved the whole neighborhood said that they prepare for performance a
lot of research on that so on the one hand if we spend more
money in the sense of having teachers you know making sure that we had no
decent class sizes with good teachers and schools the other hand would be people back to
work you know so that that’s really too for
that if we can improve the quality of education in addition to infrastructure um… you know this is a benefit we’re
gonna see long into the future union we’re facing sequestration which will
have any impact on at least federal teacher tells spending destroyed and in his office set of areas where we’re going to be cut
and you know again uh… these jurors have
already been cut to you know you’re looking at the state local government to
the cutting really since two thousand hands and insofar as we see these uh…
sequestering cuts go through we’re going to feel that even more now
you know that important to realize that three thousand thirteenths just the
beginning of the halls the hope that the story was we have a whole set of cuts echoing effect over the course of
the next decade so whatever we’re seeing this year that’s just the beginning at least you know if we follow what scoreless federal this can be more
coming next year even more the year after that so where is in his late do you think
that they really you have argued for a financial transaction tax robin hood tax
on every i mean and it just seems to mean that um… that uh… these conversations
that our revenue raising revenues on sketches seems to me
that day and it is not gaining traction and what do you think well it is quite striking that you know
you you in the washington unit purpose serious people debate over what the
washington post talks about yediyat financial speculation takes
would we never get mentioned and it’s treated like you know it bizarre thing like we were you know
crazy people out there don’t wait a second we actually came up in the united
states until the mid um… you kate has that which last time
i will cause and communist uh… you know they have the taxes half of one percent on stock trades in
the red raised equivalent rolled at their side of the economy of thirty to
forty billion a year just catching soccer tonight action derivatives you
know credit default swaps just on trade and you know you’re a state here and
people look at you like how can you talk about that do you have been doing that you just has to answer i got no i’m glad
you brought that up the process that we have eleven countries in european union
including uh… germany’s so that spain italy substantial countries that parent support him in the financial
transaction password in the uh… woods doesn’t have everyone in the u_k_ does
one have proved taxes of the nose suppose but you have you know the biggest countries within
the yours owner all behind us so to treat this like it’s a bizarre
idea that you know just crazy people would advocate you know i think that really speaks
volumes about the nature of our politics dainty and and and and are mostly that
the world economic forum that have been invited me admittance inside surprise surprise if
you if you look at the situation realistically then you’re left on the
house i actually dean one thing that i think that is cynicism here recently has it people seems to be more invested in the
allusion then the reality they don’t want to hear the truth well i think that certainly true and you know it doesn’t really make it hard
to to make progress because obviously we’re going to make headway in suppose
we could get people look at the reality of say hey look we got to change things
for going in the wrong direction so this terrible american concepts i
mean m in my eyes i mean we’re headed down a path if we do not change stuck on
this conversation if we don’t get a hold of our a political on policy apparatus to to
ensure by the people are made whole land that
people can actually afford to survive and thrive in this nation that we will be heading backwards and
has a minimum wage plan to that you know if you go back in a and a
confessed to having not noticed this into literally a few weeks ago uh… if you go back to the early
postwar europe that period from by the end of world war two talk to them it’s
seventies the minimum wage kept up not just with inflation with but with productivity growth and the crew it was an accident there
was an ideologue we wanna make sure everyone’s shearson the gains of economic growth name which hasn’t even kept up with
inflation demand that the legislation for the
bomber propose rate commemoration nine dollars an hour and that breaking into a gun battle increase of
over three thousand dollars for the lowest paid workers on country hard to
say that the bad thing the capacity to get us back to where we
were in the wake sixties where we were uh… you know at
this point forty five years ago where’s if the minimum wage kept pace
with productivity in other words that workers up and down the income whether sharing the gains of economic growth the
minimum wage today would be about sixteen fifty an hour really kind of credible thing to think
about this morning forty percent of all men get the more than fifty percent of all women
get we’d be in a very very different countries that were the case involves a
lot of ground i recently i went into signing for a
friend of mine who wrote down dot com behind the kitchen door innocent out
demand always means that people don’t do this for restaurant workers which is actually lower than the
national minimum wage and and it’s been stagnant for decades as well high and so
you know they’re now pushing to actually tag the minimum wage for restaurant
workers to the national minimum wage do you have any insight on that yet know this incredible thing again the
courses that very few people have a lot of people policy debates are aware of
that there’s a separate minimum wage protected forties and i forget whether that whenever last
has been uh… increase say i think that they expect from the mid eighties for
the next week if you know i could tell you check the weather there is a lower
and that phone dammit uh… you know the presumption is that
you didn’t get that made up with the exception obviously you know if you work
in the expense of restaurant and you know people are big meals whatever that
may be true but for a lot of people that are working at your coffee shops no you know that i’m making up to what
that means is that give a lot of people working in the
restaurant sector that of getting considerably less from the
minimum wage which you know through an incredible thing ’cause seven point eleven hours not exactly
uh… living high on the hog might actually have the book signing had
people on workers are strong workers who testified that negative taste as it actually says that
this is not a uh… and this is not a payment and and it’s
actually made it because the taxes actually wipe away their base uh…
minimum wage and then they’re just in dire dire
straits forcing them to do all kinds of things and so it’s a terrible thing when people actually work in this
country and they can’t make it yeah and you know if peres strikingly dougie you go back and near
the forties and fifties sixties because it wasn’t obviously for
the cause of this country i mean we were he was very much a couple’s country
companies were making big profits but yet there was weakened senses fewer republicans that support
this true that you know that you can get a
big difference you know that you got out now on the white house in some ways sell
whatever they raise the minimum wage again you know this is across the political
spectrum this idea that everyone she sharing the gains of prosperity and death that ideas just disappear that we’re
getting this this notion somehow you know for paying our workers more
than we’re paying them and you know that the poorest country and in latin america
sub-saharan africa whatever might be that somehow that we can’t do that which
is not just incredible story steam digitally response yes it did and you know that though you know is that it is a real
tragedies is a brilliant kids in we’re committed and you know that story i have said feel bad i i didn’t know almanac
communique with and i are you of his arrest of course i had no idea of the charges he was
facing do your listeners don’t know he was he he he did downloading uh… academic
articles intention was to uh… to make them available to the public saved on
motive at believe is a hundreds of thousands if not millions of academic
our government is going to make them freely available to people that anyone
could uh… click onto them without pain and it’s a violation of the of copyright
law no doubt about it he got caught and my assumption was you know he’s facing
p_l_o_ suspended sentence something but the the prosecutors federal prosecutors
under the obama administration were were charging a pressing charges that could
have put ’em in jail for for decades thirty years i understand uh… and if you know it with the
staying over his head he he ended up committing suicide no obviously other
issues settlement savy your portion to commit suicide but the tapes are striking you know i look at this i got here you
have the that this young man that was trying to make the information academic work available to the public take the resources to presses charges and then you look at the wall street
banks who passed on tens of billions of dollars in
fraudulent mortgages to enrich themselves and that one of them has been charged
with reminds me anymore and they seem to be going after the little guy in the
morning the mortgage brokers who were doing and saying that seems like they’re
willing to press charges against them and not the players who were actually
pulling the strings he refused to be clear you know accepted
people say well there was nothing with all that well you do you all very but the basic story
here’s a deferment citigroup environment merrill lynch and i have a po mortgages that have also short of waiting improprieties and things that clearly don’t make sense supplemental mortgage-backed securities
selvam on forever that’s cropped and you know can you prove that i know security which i think that right someting i just wanna ask you this last
question why why do you think the state house capitalism means today and then we
seem to have a super capitalism socialism on steroids capitalism and all
costs making money off costs and the government seeming to demand that and some of this what what is your take
on where we are will i think that uh… i think we’re
expendable situation and sent these people just are not there there’s
there’s no one who’s doing long-term thinking go back to the forties fifties
and sixties your capitalism people make plenty of
money that was stable system this is not a stable system that was
unstable system before things blew up in two thousand eight it’s not a stable system today and thing
if these people do not want think about that all they’re doing is going to haiti
profits are back to the pre recession level stock market is back twelve was in
two thousand seven why are you bother me so if you were president on the world what kind of uh… will what changes
would you make well you know waiters think long-term look we we’ve looked
people out of poverty after world war two and much of the developing world
uh… we could repeat moved forward i mean of once and i will
look to impose you’re really great storage you’ve had
huge with the improvement of living standards for large onto a population of
one of the ocean to praise of the government help dictatorship plucked a
bad thing to pray about it but there have been enormous
improvements and living standards beer in many countries in latin america we
could build on that route see those countries as friends rather than enemies
and you know that the problem facing today
it’s really kind answer were poor because we have a lack of to
be in we have to do is get money into pockets
peoples spend and that will make us all better
off so it’s not earlier sir that you know where so many people
suffering from unemployment simply due the fact we don’t have enough
demand in the world economy today the maker always a pleasure thank you fair manner well that’s it for another edition sit
with my rossy marks as always i like to thank my listening
audience and my production team appeared james callaghan greece webster and
courtney finally i’d like to remind our listening audience to please join us
live every sunday at three p_m_ eastern time and we had radio dot com or
fourteen eighty eight and if you’re in the washington d_c_ area until next time

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1 thought on “US Economics 101 – With Dean Baker & Maya Rockeymoore

  1. Thank you for this interview.

    Dean is right, there is NO debt crisis. Both parties (including the president) are using the debt as an excuse to cut Social Security, Medicare, and the other few (note the word few) social programs we have in the U.S..

    The interest rate on a 10 year bond is 1.99%, with (according to the CBO) an interest-to-GDP ratio of about 1.3%. That means financial markets see no debt crisis.

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