UC Berkley professor and notorious liberal Robert Reich wrote a very thoughtful piece last week detailing all the reasons why Team Obama's economic policy was in a full death spiral (see below).
I applaud little Bob for his honesty about the true state of the economy. I also agree with his central point -- pessimistic consumers buy less. But then he and I part company.
Bob kind of augers into the whole consumer demand theme, as if consumer demand is just some sort of serendipitous happening -- it's not.
Consumer confidence is driven by one thing and one thing only, how do people feel about their job and career prospects.
Obama has continuously demonized the private sector for over 2 years and until the Tea Party swept fiscal conservatives into office last November, there was absolutely nothing for private sector workers to feel optimistic about.
And while Obama did give public sector workers a temporary reprise from economic realty with his "government worker bail-out' (AKA The Stimulus), like all sugar highs, it wore off big time and now it's hell to pay.
Big labor can camp out in the Wisconsin State House "until the cows come home," but it won't change the fact that there isn't enough money or tax base to cover their fat salaries and ludicrous pensions, so there not very optimistic either.