Alan Krueger Appointment: It's about the public spectacle, stupid!

    By Oxy Mora on Mon, 08/29/2011 - 12:56pm |

    A few minutes ago Fox News announced an on-line survey: "Will the appointment of Alan Krueger make any difference at all?--the words in italics delivered by the blonde dim witted woman in the smarmy, sarcasm-dripping-monotone voice typical of Fox News.

    Here is my response to Fox News. YES. But not for the reasons you think.

    The right wing Republicans, abetted by their propaganda arm, Fox News,  have for three years blocked any attempt by President Obama to put into effect reasonable measures to address short term economic and unemployment concerns. The possibility that the right wing House of Representatives will actually vote for anything constructive is near zero. So, in that sense, Alan Kreuger will not make a difference. Right, stupids, I coming to it.

    To Fox News and all the stupids in Congress, I say Bring it on. We want a spectacle in the confirmation hearings. We want a platform to call you out. We want the public to fully understand the narrow interests served by Republicans in Congress. We want people to get so fed up with tea partiers that they will wipe them off the slate in 2012. We want an intelligent spokesman like Krueger who will make the case for the middle class, for education, for solutions to long term unemployment. So stupids, continue to  act as juveniles who are uneducated and uninformed. The American people, including the ones who are unemployed, will be watching the hearings as every sensible proposal to address our problems will be rejected by you.

    I warmed to Krueger immediately when I found out he actually has relevant information about the job searches of the unemployed related to their situation and level of effort. For one thing, Krueger discovered that job searchers spent only 9% of their time networking-talking to friends and family--the most successful method of job searching according to many job counselors. In other words, Krueger actually knows something about the job hunting problems of average folks at the ground level--which I found refreshing.

    Krueger will of course press for innovative programs for unemployment. Most likely, all good ideas will be blocked by Republicans. But it will be up to Republicans to explain to the American people why they refuse to do anything to help the economy, help Obama, or help the unemployed.  

     

    Comments

    I watched a You Tube clip on Krueger's appearance before the Council on Foreign Relations several months ago. Some of the discussion related to the cause of unemployment in the context of what economists  call the technology vs. trade argument, on which the consensus seems to be 80/ 20. which I take to mean only 20 % of our unemployment problem could possibly be related to globalization and outsourcing. By the way Kreuger is definitely not an anti-free trade guy or a we need more new regulations guy, which must have been comforting to Pete Petersen who was sitting in the front row.


    by Oxy Mora on Mon, 08/29/2011 - 1:43pm

    The primary reason 15% of the country is unemployed is not that there are all kinds of great jobs out there but folks just don't know how to find them.  We are not facing a crisis of deficient networking.


    by Dan Kervick on Mon, 08/29/2011 - 3:45pm

    Thanks, Dan. Didn't mean to underestimate the severity of the unemployment problem or propose networking as a panacea. Just that the typical economist has no interest in something so un-ivory-towerish as how a working stiff goes about getting a job,and which gives me some comfort that this guy is a somewhat different cut than his predecessors. On the other hand, I do know  a couple of family members who are not conducting very effective searches--particularly in the all important area of making the case for their own "transferable skills". I can also tell you from personal experience that looking at ads, etc., is almost pointless.


    by Oxy Mora on Mon, 08/29/2011 - 4:26pm

    Here's Krugman, via Brad Delong

     

    Economics and Politics: [W]hile the battery lasts: Alan is a fine choice as chief economic adviser. He’s done excellent work, he’s a really good guy, whom I know pretty well, since we keep getting each others’ mail. Now the question is whether anyone in the administration listens to him….

    Alan may write about labor markets, but he knows macro and is pretty salt-water and activist by inclination, as far as I know. His advocacy of job tax credits comes from an attempt to work within political constraints, not lack of interest in more decisive solutions. And I think the administration was looking for a high-profile, first-rate economist willing to take the job, rather than tilting toward a particular field.

     

     


    by Flavius on Mon, 08/29/2011 - 11:01pm

    Thanks, Flavius. That was a short and crisp post by Krugman. It seems Krueger could easily replace Geithner when the occasion arises.

    I must admit that when I first heard the announcement on my car radio I "heard" Krugman not Krueger, hit my fist on the dash, rolled down my driver's window in Texas and shouted, "Now that's what I'm talking about!" to an adjoining Ford 250 dually with a four wheeler in it's truck bed.

    As far as tax credits for jobs, I think that's the best idea out there. As the owner of a small company, I would definitely take advantage of it, depending of course on the amount of the credit. I think it would have to be 40 or 50% in the first year to motivate an employer who was on the fence about a new hire.

    Despite the flippant title of my post, I think this is a serious move by Obama..He may in fact wring something out of this Congress. If not this appointment is important in setting  the agenda for America going into the 2012 election. Obama needs to clearly spell out the role of government for long term economic growth and unemployment, and Krueger will be a central part of that narrative.


    by Oxy Mora on Tue, 08/30/2011 - 7:19am

    "Now that's what I'm talking about!" to an adjoining Ford 250 dually with a four wheeler in it's truck bed.

    Being towed to the shop?

     


    by Resistance on Tue, 08/30/2011 - 7:31pm

    Ha! No, just couldn't think of the right word--for a vehicle abreast of one on the highway.

    But I do have my eye on my neighbor's dually since he's a hankerin' to buy a new one. Where I hang out in the country, if you aint got no dually, you aint got no respect.


    by Oxy Mora on Tue, 08/30/2011 - 7:56pm

    Obama's in gigantic trouble.

    http://www.creditwritedowns.com/2011/08/achuthan-too-late-for-obama-on-jobs.html


    by Dan Kervick on Tue, 08/30/2011 - 3:48pm

    I agree that the headlines look terrible. Friday's job numbers will probably be so bad it will tank the market again.

    On the other hand, I can not subscribe to a philosophy which says "it is too late" for this or that. There is always hope.

    Right now the hard numbers for June and July on such things as consumer spending, durable goods orders, etc., are surprising analysts to the upside. There was also a small increase in the price of home sales today. So there is a discrepancy between hard numbers and surveys.

    It is of course to Republicans' advantage to keep the hang dog narrative about the economy alive.


    by Oxy Mora on Tue, 08/30/2011 - 6:22pm

    I agree it's not too late.  But it will be too late if Obama talks himself into ineffective half-measures and quarter-measures, designed more to massage the headlines than change the direction of the country.

    I don't know how he adjusts politically to a situation in which he and the Republican Congress have collectively driven us in the wrong direction for well over a year.  How does he chart a new course?  Because if he just stays the course, we're sunk - and so is he.

    Frankly, I think we're likely just to get some 9/11 anniversary "come together" falderal, which might give Obama a few new slogans to run on next year, but won't keep us out of another recession.

    Somehow, he just doesn't seem to get it.  He has convinced himself since at least January 2010 that prosperity is just around the corner, and refuses to identify and address things that are profoundly broken.


    by Dan Kervick on Tue, 08/30/2011 - 8:52pm

    Dan, I agree with what you're saying, and very well put. If Obama doesn't come out with something really significant in a jobs program, he is going to be dead in the water. I think he has an opportunity to regroup and I hope he does. We'll know shortly.


    by Oxy Mora on Tue, 08/30/2011 - 10:25pm

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