By Grant Lawrence
"No one realized how bad the economy was. The projections, in fact, turned out to be worse. But we took the mainstream model as to what we thought -- and everyone else thought -- the unemployment rate would be."
"Everyone guessed wrong at the time the estimate was made about what the state of the economy was at the moment this was passed."
Vice President Joe Biden on the the stimulus and the lack of an economic recovery
The Reason the economy is in such a mess and the recovery has failed to materialize is because no one knew how bad things were when they passed the stimulus package at the beginning of this year. Or so says US Vice President Biden.
But is that really true?
For almost a year, there has been near panic on the economy. When Bush and Congress gave away nearly a trillion dollars to the banks last fall, we were told that the banks had to be bailed out because the economy would collapse.
Now fast forward to the beginning of this year. There had been numerous voices (mine being one of them) on the need for the creation of economic and social programs on the scale of that found during the Great Depression.
Nobel Prize winning Eonomist Paul Krugman warned last February that the $787 billion stimulus is not nearly enough to fill the "well over $2 trillion hole" in the economy.
So how is it that voices, such as Krugman's, were ignored?
Maybe it is because the Obama Administration's main concern, like that of Bush's Administration before him, is for the welfare of the banking and corporate class at the expense of the American people.
But one of these days somebody is going to figure out that all of our interests are interconnected. That is, when you have a healthy and thriving people then the political and financial elite can also do well without having to steal from their people.
But if the ruling elite that actually run America and much of the world refuse to accept the idea of mutual benefit for all they will soon find their Empire in collapse. Just like the Roman Empire and all of the Empires before our present Military Industrial Establishment.
Our present Empire may go out with a bang or a whimper, but it will go out. That is unless the present power structure in America understands that the bottom and middle classes are as important as the elite class.