Into The Abyss

Third quarter productivity rose 9.5%. Were that to continue for an entire year it would mean that the nation's businesses could produce the same amount of good and services with 10% fewer workers. Normally this is a very good development. However it is also signaling a protected period of very high and painful unemployment. Maybe as much as 15% by this time next year?

This is very possible. It is also why we conservatives need to tread lightly with the fiscal responsibility rhetoric. Our nation is facing its second Great Depression. It is undergoing a massive adjustment process. We cannot - in this moment of crisis - just let free market forces prevail. To do so will destroy some very important parts of our economic machinery and will ruin the lives of many people who have been playing by the rules.

Instead, please think about how we can stimulate our economy and create jobs in the right way. Tax incentives for capital investment. Domestic energy development. Insist on a level playing field for global trade. Smart investments in public infrastructure to eliminate bottlenecks to commerce.

There will be a time for fiscal discipline. It will be once our economy is on a self-sustaining path and is again growing. Then we will need to cut spending, raise taxes and live within our means. But first let us make certain we have stopped falling into the abyss.