Those who have jobs produce far more than those who have jobs can consume.
Post hoc ergo Propter hoc: Harvard Economist Robert Barro, observing that in the early 1980's unemployment benefits were constrained and that unemployment at that time fell quite quickly, concludes that all we need do is to stop paying more than 26 weeks of unemployment and everything will be fine. I think Robert – like many economists and most Republicans– should try to get a job in construction.
Magic: In April, personal income increased 0.2% and personal expenditures increased 0.4% which people on Wall Street find a cheering trend. In July, the personal savings rate dropped from June's 6.2% to 5.9%. Joy to the world, consumption's back.
Exploding Exports: In an attempt to spur US export business, restrictions on selling military weapons and systems are being removed. Seems there's a growing market for cluster bombs and depleted uranium shells. Ricardo said each nation should produce that which it is best at.
The Water's Running: The difficulty in dealing with climate deniers (and the birthers and so many others) is not that they don't understand the evidence – it's that evidence has nothing to do with their belief. The denial comes from deep-seated emotional commitments and fears, in unthinking adherence to some political ideology and, often, in a perceived financial interest in not knowing – and they simply cannot hear rational arguments.
Over There... Companies are rushing to buy up acreage in Africa that they can use for growing bio-fuel crops, a process that involves deforesting large sections of land, diverting water from production of foodstuff to the growing of fuelstuffs, irreversible environmental, social and cultural devastation. Some 12 million acres have already fallen into their hands. How is this not another form of colonial exploitation?
Rainmaker: We're told there is a bonanza of petroleum waiting for us under the Artic ice – some 90 billion barrels of recoverable oil. At about 90 mbd, that’s about 1,000 days. Call it 2.5 years. Yup, we are saved. Or will be, once they figure out how to safely drill with the ice forming and melting every year...
Deficits Erased: Joe Miller, Tea Partier and presumptive GOP candidate for Senator in Alaska, says that unemployment benefits, Social Security and Medicare are not constitutional and must be stopped. Now if he could just do away with a standing army...
Ouroboros: Agribusiness says it must be allowed to use genetically modified crops, more herbicides, more large scale (fossil fuel based) farms in order to feed the growing population, but all that'll do is allow the now-fed population to expand further, which will require ever more crop production. People are a crop, famine is the endgame.
The Question: “What happened to reasonable, rational, educated people of purpose in this country?”
Correction: Paul Krugman observed that “a significant number of Americans just don’t consider government by liberals — even very moderate liberals — legitimate.” Actually, a large number of Americans do not consider any government legitimate.
A little help, please. When economist talk about 'savings' and the 'savings rate' do they view paying off debt as 'saving”?
Porn O'Graph: Reversion to the very, very mean.