The US economy created a measly 74,000 new jobs in December, and a smaller percentage of working-age Americans is now employed than at any time in the last three decades (before women surged into the workforce).
What does this have to do with the fact that median household incomes continue to drop (adjusted for inflation) and that 95 percent of all the economic gains since the recovery started have gone to the top 1 percent?
Plenty. Businesses won’t create new jobs without enough customers. But most Americans no longer have enough purchasing power to fuel that job growth.
That’s why it’s so important to (1) raise the minimum wage at least to its inflation-adjusted value 40 years ago — which would be well over $10 an hour, (2) extend unemployment benefits to the jobless, (3) launch a major jobs program to rebuild the nation’s crumbling infrastructure, (4) expand Medicaid to the near-poor, (5) enable low-wage workers to unionize, (6) rehire all the teachers, social workers, police, and other public service employees who were laid off in the recession, (7) exempt the first $20,000 of income from Social Security payroll taxes and make up the difference by removing the cap on income subject to the tax.
And because the rich spend a far smaller proportion of their earnings than the middle class and poor, pay for much of this by (8) closing tax loopholes that benefit the rich such as the “carried interest” tax benefit for hedge-fund and private-equity managers, (9) raise the highest marginal tax rate, and (10) impose a small tax on all financial transactions.
One of the major political parties adamantly refuses to do any of this, and the other doesn’t have the strength or backbone to make them.