Dems, Repubs talk past each other on economy

This is what Obama was supposed to fix in three-odd years in the White House: a loss of 39 percent of Americans' net wealth during the Great Recession, according to the Fed.

In particular, the median value of Americans' stake in their homes fell 42 percent between 2007 and 2010.  That's particularly awful because: 1) most Americans' wealth is in their homes; and 2) construction, the hardest hit sector in this crisis, is usually the sector that brings us out of recession.  

Underwater houses and oversupply of housing are still the biggest obstacles to increased spending (demand) and investment, including in construction, hence hampering our economic recovery. Moreover, of the 8 million jobs lost during Dubya's recession, 2 million were in construction.

Obama should have done so much more, particularly by pushing mortgage modifications with principal reduction.  But instead he concentrated on giving $29 trillion to the Too Big To Fail banks.

But since Republicans don't believe in helping Main Street, they don't criticize Obama for that failure of leadership.  Instead, they argue what's held the economy back are Obama's "job-killing regulations," and not enough drilling, fracking and mining.  It's like they're living in a different country!  Our bipartisan dialog over the past two years has gone something like this:

Democrats:  Americans lost 39 percent of their net wealth during Dubya's Great Recession, mainly from the burst housing bubble.  Nevertheless, Americans are well on their way to reducing their private debts; and the U.S. is the only major Western economy to have decreased its ratio of total debt to GDP since the crisis.

Republicans:  The problem is the national debt!  Slash it now, even if it causes a depression! People who are unemployed and suffering now need to suffer even more so that their (unborn) grandchildren don't have to!

Democrats:  Let's not repeat the mistakes of EU countries that adopted strict austerity measures hoping to appease global bond markets and keep their interest rates low, only to cause zero-negative economic growth that scared away global bond markets and increased their interest rates and national debts.  

Republicans:  Adopt austerity measures now or we'll end up like those socialists in Europe!

Democrats:  636,000 state and local employees (firefighters, policemen, teachers, et al) have lost their jobs since the Great Recession.

Republicans:  States need more flexibility to fire their fireman, policemen and teachers!

Democrats:  China is investing $1.5 trillion in government subsidies for solar PV innovation over the next five years, even though they already control 50 percent of the world's solar market --  a market that has grown more than 5 times since 2007, with long-term growth prospects of 20-30 percent per year -- and export 90 percent.  Meanwhile, Solyndra has been the only U.S. government energy loan guarantee that has soured, 1.3 percent of America's relatively tiny $38 billion portfolio over the past 6 years.

Republicans:  Drill, baby, drill!  

So, as you can see, Republicans claim that they have all the answers, while it is evident that they don't understand the questions.