Joblessness deserves better explanation

The public needs help to understand the joblessness that is devastating millions. So I read The Gazette's July 9 editorial, “The road to economic recovery,” with hope, but found still more confusion.

Let's be clear. Businesses risk increasing their payroll cost only when they gain confidence they can sell what additional employees will produce. The unemployment problem in a recession centers on insufficient spending. The Gazette at least recognizes that Congress must now extend unemployment compensation. To terminate these checks to the jobless, besides being inhumane, would only decrease consumer spending. But The Gazette says nothing about another critical part of the bill that Republicans are blocking, to continue assistance to the states. Without this assistance, Iowa and other state governments must lay off teachers and other public service workers, further depressing spending and deepening unemployment. At this time, when tax increases would be self-defeating, these measures require deficit spending.

To state “Our colossal debt today has raised fears of hyperinflation or deflation” is simply confused economics. So long as unemployment remains high, there is no inflation. It is when consumer and business spending recovers that federal spending, such as for unemployment compensation and assistance to the states, must be withdrawn to head off inflation at that future time.

Regarding the debt, economic recovery will give us taxpaying jobs. The president has established a commission that will recommend additional spending reductions and tax increases. Right now the great peril to the nation is prolonged joblessness, and job creation requires spending.

Don Cell

Mount Vernon