At right: Washington Journal video of segment with WaPo economics writer Ylan Mui.
Watching Washington Journal on Friday morning, I was shocked, shocked, to hear Washington Post economics writer Ylan Mui insist that if we do not go shopping this morning, we the public will produce yet more unemployment.
For the reason that this is totally opposite of the truth, and business has just shown record profits which has not been invested into employment and expansion, I wrote in;
Thank you for your continuing wide coverage.
Just heard Ms. Mui say; If you don’t come out and buy you might see an increase in unemployment.
So, it’s all back to consumer ‘confidence’ from the professional business reporter, which ignores that there cannot be consumption without disposable income. Making this a which is first, the chicken or the egg, and the professional chooses consumer/egg to crack open. However, for accuracy; business has prospered and should be the chance-taker, to open up the economy.
Happily, the email was read to Ms. Mui. Her response is that ‘if I understand’ the email correctly (hey, I kept it really simple) – that it says we need money in order to spend.
The ‘professional’ economist response is, really we all have money, it’s just in savings. To save the economy, we have to drag it out and spend it or we’ll make the economy tank.
Needless to say, that chicken is still trying to un-lay that egg.
Anyone surprised that the financial meltdown happened, and was a surprise to the ‘professional’ media? As Jane Hamsher found during her appearance on Washington Journal on Saturday, there are members of the public who still believe in the kind of ‘trickle down’ economics and ‘consumer confidence’ responsibility that this WaPo writer keep plugging away with.
Business is not investing, so there is not a good employment picture. Simply put so WaPo reporters can understand it, without that employment, there are not wages; without wages, there are not consumers to spend money/wages.
Ergo, economic meltdown.