SPIEGEL: The world is mesmerized by the spectacle of the government shutdown in Washington. To you, however, this must seem like déjà vu.
Reich: When I was secretary of labor under President Bill Clinton, we lived through the last shutdown of the US government, in 1995. I had to tell 15,000 people that they had to go home, and I didn't know when they would be paid. It was terrible, and we didn't know how long it would last.
How many people went home after losing their jobs due to Obamacare? Being employee greater than 49? Went from full time to part time and have to try and replace their income with multiple part time jobs?
Government employees the new aristocracy? Private sector pain doesn't matter? Job loss is ok if it happens in the private sector? Because politicians don't have to send anyone home without a job?
SPIEGEL: But the top earners are also responsible for the largest share of tax receipts. And when wealthy people spend more, the whole economy benefits.
Reich: Only that they do not. A super-rich person featured in my movie puts it this way: "Even the richest person sleeps on only one or two pillows." The reality is that the major job creators in any economy are the people who buy, the vast middle class and the poor; if you reduce their share of the economy and yet productivity gains continue, they simply are not going to be able to buy enough to keep the economy going at or near full employment unless you have a huge net export market, which we do not have.
Perhaps this is why California seems to keep growing the welfare class? Importing illegal aliens to increase their economy?
What happens when their is no more money for welfare? Perhaps welfare programs should be returned to the states to fund?
Reich: The economic divide has rarely been as pronounced. The typical male worker in the US was making $48,078 (€35,400) a year in 1978; now this average annual salary is down to $39,000. At the same, the net worth of the 400 richest Americans is higher than that of 150 million Americans combined.
Lower wages higher cost of living under 50 years of socialism? Rule by progressives? Maybe the progressive economy really doesn't work?
Reich: … and he squandered it. Obama should have put far more conditions on the banks that received the bailouts. He should have told them: "You've got to agree to some severe regulations like resurrecting the Glass-Steagall Act" -- which separated investment from commercial banking -- "and you've got to refrain from providing big bonuses for your executives."
SPIEGEL: Why wasn't Obama able to get his way?
Reich: His administration has been too close to Wall Street. Too many Obama administration officials have worked on Wall Street; too many are leaving to go to Wall Street. And Wall Street is simply not attuned to the needs of average working Americans.
Obama, near and dear to Wall Street?
Why didn't he just say "No more bailouts, fail with your own money"
read more here -
http://www.spiegel.de/international/world/spiegel-interview-with-robert-reich-on-us-shutdown-a-926637.htmlFor some reason, the ruling class can't see the pain through the party atmosphere of DC and the suburbs...
