The surprisingly disappointing September unemployment report – 142,000 new jobs created compared to an expectation of more than 200,000 – should break once and for all two illusions about our ability to sustain a robust economy.
The first illusion is that there is no penalty for the continuing lack of public investment in the fundamentals of the real economy – from the schools that develop the skills and creativity of our future workforce to the transportation networks that enable us to move goods and people through our communities.
Years ago we should have had a place a major plan to bring all of our common assets – from schools to roads to water systems to our energy grid – into the 21st century. Not only would this have created millions of jobs, but it would have set the nation up for sustainable, more ecologically responsible, long-term growth. We should have taken advantage of the near-zero borrowing costs and the willingness of the markets – notwithstanding the sky-is-falling bleating of the chattering class – to allow the United States to take on more debt as long as it was wisely used to build for the future.
Labor Secretary Thomas Perez said in an interview on Bloomberg today that the federal spending constraints imposed by the Republican Congress – the “sequester caps” – mean the economy is producing 500,000 fewer jobs a year than it would if those constraints were lifted. Those jobs would range from construction workers to teachers to health care workers.More ...