RE: The long and short of it

[Cordell . Arthur]

The article notes the problem as:   The problem after the late-90's boom and subsequent collapse is that there aren't nearly enough buyers for all the goods and services the economy can produce. Businesses have cut their capital spending because corporate profits have fallen. And with disappearing profits, businesses can't give their employees pay increases and benefit packages. Instead, they have to cut wages and health-care benefits. And they aren't in any position to add more jobs. Such businesses also don't buy more components and equipment and they don't rent more space. They stop investing. Eventually profits of their suppliers begin to disappear, too, as do suppliers' payrolls. And Reich offers a conventional solution.  OK.  An industrial age solution to an industrial age economy.  An article that could have been written in the 50's, 60's etc.  Nothing new. I think that Reich could do better.  He is not "living up to his potential"  His article says nothing about the "new" economy.  About what happens when an economy moves from producting tangible goods to intangibles....etc. etc. etc.  -----Original Message----- From: Karen Watters Cole [mailto:[EMAIL PROTECTED]] Sent: Wednesday, October 16, 2002 12:16 PM To: Cordell, Arthur: ECOM; [EMAIL PROTECTED]; [EMAIL PROTECTED] Subject: RE: The long and short of it But what do you think of the proposal, Arthur? Karen   AC:  When Bob Reich was in the cabinet he was strangely silent on most things.  Funny how good ideas emerge only after one has the power to implement..... TW: Reich joins Paul Krugman in this sensible proposal. The neat thing about a $15,000 base exemption is that it makes it cheaper for firms to hire new people rather than work existing employees longer hours. Making payroll taxes progressive has been the cornerstone of my shorter work time policy proposals since 1996. It's good to see the big boys catching up. Too bad Bob Reich didn't click on this one when he was in the cabinet.  Subject: FW: The long and short of it Good proposal in plain English.  Even though this comes from an economist who as politician just lost the Massachusetts gubernatorial primary, thus making him a loser, he makes the case for dramatic short-term intervention and then long term resolution of a conflicting program.  There are valuable lessons to be learned from failure and losers, some whom find success in the future.  Just ask Jimmy Carter.  Or the US military, after Vietnam.  We can only hope the same for Arafat and Sharon and their countrymen someday.  From my lips to God’s ears.  – Karen Watters Cole Quick Tax Relief for an Ailing Economy By ROBERT B. REICH, NYT, 10.15.02 @ http://www.nytimes.com/2002/10/15/opinion/15REIC.html