What is Happening to the American Economy and How Should It Be Fixed?

It's economic commentary time. Generally I do not intend to post content on the economy but for this post I will make an exception. Two recent videos that have been circulating on the internet this past week nicely complement each other in helping viewers understand what is wrong with the American economy and how to fix it. The first video was uploaded by AJ+; it is titled "Killing the Middle Class". The video makes the argument that the greed of the top 1-10% is squeezing out the middle 40%, making it more and more difficult to sustain a traditionally middle class standard of living.

The second video was posted by former Secretary of Labor Robert Reich, who argues that "deficit-hawk" austerity program is precisely the wrong prescription for a week economy; it will only make a weak economy even weaker, possibly throwing it into recession or worse. Reich identifies three essential points in order to understand what is necessary for an economic recovery. These three points are, waved in front of advocates of austerity measures, are like garlic when you wave in in front of a vampire; they make the enthusiasts for austerity measures shrivel up and blow away.

Together these two video clips provide a clear and concise explanation of what is going wrong and how to fix it.