The Republican Party and its powerful allies in the right-wing news media made it clear from the moment Barack Obama took office that they would demonize everything he tried to do, especially with respect to the economy.
Knowing that progressives had no comparable media infrastructure with which to respond and that many Democrats would cower when attacked the Republicans now appear to have convinced many Americans to hand congressional power back to the GOP, a situation that Stephen Crockett addresses in this Consortium News article, a synopsis of which follows here.
Republicans in Congress have decided that sabotaging economic recovery and employment growth is their best tactic for electoral gains in November as long as they can pin the blame for all the joblessness and the bad economy on the Democrats. And this it seems fairly likely they will succeed in doing, given that most Dem voters are essentially asleep at the wheel when it comes to really understanding how our political economic system works. Signs of this Republican plan have been cropping up since the Democratic victories in 2008.
Here are the things you need to understand, to clearly see how this Republican plan will work:
1. Economic recessions and depressions almost always result from insufficient "effective" consumer demand for goods and services produced domestically. In economic terms, merely wanting something does not constitute "effective demand." For a want to become an "effective" demand for goods or services, it must be accompanied by the monetary ability to actually make the purchase.
2. Jobs are not created by just having large pools of investment money available, as most big corporations and banks now do. There must also be the opportunity to invest in a business that will have customers who have the money to buy the goods and services. Then and only then will investment money flow into business opportunities and job creation.