A New Economy

I recommend reading Robert Reich's blog, frequently. He's a former secretary of labor, tenured academic economist, and well regarding author. He blogs at http://robertreich.blogspot.com/. Why? Because we all need some serious new guidance on the economy, and the actions we must take to survive (forget about thriving.) Reich is, along with past recommendations to look at the work of The E.F.Shumacher Society (http://smallisbeautiful.org/), what we must understand as a Guru on economics ("as if people mattered".)

My prediction, then? Not a V, not a U. But an X. This economy can't get back on track because the track we were on for years -- featuring flat or declining median wages, mounting consumer debt, and widening insecurity, not to mention increasing carbon in the atmosphere -- simply cannot be sustained.

The X marks a brand new track -- a new economy. What will it look like? Nobody knows. All we know is the current economy can't "recover" because it can't go back to where it was before the crash. So instead of asking when the recovery will start, we should be asking when and how the new economy will begin. More on this to come.

So, in a nutshell, the economy we grew up with is gonzo and there's nothing, yet, to replace it. Fortunately, "we the people" are, and always have been, in control of the emergent economy. That's by virtue of our choices, of what to buy and do to make our wages. That, of course is what ACES is all about ... see below. ACES, as it happened, must be considered more a green jobs bill than a Global Warming Solutions Act. It is in essence, what Krugman and others are calling for, as a "second stimulus" package. It is much more specific, however, in where the money goes.

ARRA was more about immediate recovery, getting the money out quickly, mostly to preserve state & local government ability to retain its local labor force. ACES, on the other hand, is more about the right recovery, no matter how long it takes. Money for cleantech and the new economy that Van Jones has consistently called for. In case you hadn't noticed, Van Jones got what he asked for in ACES, so did Congressman McGovern (as follows).

So, you ask, ACES was a good thing? Well, no. Because it was really supposed to be a national Global Warming Solutions Act, meaning a significant lowering of CO2 emissions. It won't do that in time, and we'll likely pass the climate tipping point, and end with catastrophic climate change. Start building those life boats.