Today's Washington Post features more bad news on the economic downturn.
Stocks Slump As Signs Point To Harder Times
Key Indicators Suggest Deep Recession
Businesses cut prices at a record rate and builders started fewer new homes last month than anytime on record, according to new government data, as the outlook for the economy continues to dim.
We're in for some serious hard times ahead, folks, and we need to focus on winning some key economic battles. We may have our differences about President-elect Obama's cabinet choices and policy positions, but we share some key goals that could be won if we work together.
Like most people, I've become a bit cavalier lately about rapid swings in the stock indexes: who can make sense of this wild ride? But yesterday was a terrible day by anyone's standards.
The data helped spur another terrible day for the stock market, as did a projection of more hard times ahead by leaders of the Federal Reserve. A serious recession now appears all but assured. The stock market fell another 5 percent, as measured by the Dow Jones industrial average, which closed below 8,000 for the first time in this bear market. New-home starts in October were the lowest since at least 1959, when the government began keeping data. The consumer price index plummeted by the most since that series of monthly data was started in 1947, as the economy slowed so abruptly that companies had to slash prices to sell products.
Lest anyone assume that these are merely financial numbers that don't affect day-to-day reality, the Post also points to increased unemployment in the near future.
And Federal Reserve leaders released projections indicating they expect the economy to worsen significantly in the coming year. The most pessimistic of 17 Fed officials expects joblessness to rise to 8 percent at the end of 2009, which would be the highest in a quarter-century.
Link
I'm no economist, but I'd like to propose an economic platform that kossacks can unite around in the coming weeks so that by January 20 we have begun the work of coalition building and narrative framing that is so necessary to legislative success.
Progressive Economic Agenda: First Principles
1. Jobs. An economy based on consumerism is obviously vulnerable to swings in consumer confidence. As President-Elect Obama said repeatedly on the campaign trail, we need to re-invest in production, particularly in green technology, but also infrastructure projects ranging from rail, bridges and roads to education.
2. Universal health care. A single-payer, national health plan is my preference because it would take the profit-motive out of the equation and would keep costs low. But I'm open to debate.
3. Main Street Bailout. The sub-prime mortgage fiasco is having a toxic spillover effect in neighborhoods all over the country, as housing prices plummet and as businesses go under. Saving Main Street seems to me a smart way to fix the internal weakness in the economy.
As the old saying goes, "Cold Weather Brings Hostile Cats Together." Speaking from my own experience with heat-seeking cats, this is very true. We all have different ideas and preferences, but the beauty of this site is that airing, challenging and defending ideas can make them stronger, and lead to a rough consensus.
Any takers?