My sobering summer road trip
Even on vacation, economists can't help themselves: They think about money. Commentator Robert Reich tells us what his recent road trip with his son taught him about the state of the U.S. economy.
Robert Reich (Robert Reich)
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TEXT OF COMMENTARY
Kai Ryssdal: We're marking the unofficial end of summer these next few weeks by asking some of our economist friends a simple question. With all the thinking you do on the job about economics, what do you think about when you have a little spare time? Today, one-time economic policymaker Robert Reich. He is just back from vacation. Took a coast-to-coast drive with his son, during which he spent some time pondering how different the view can be from behind the windshield.
ROBERT REICH: My road trip across America a few weeks ago with elder son Adam and his big dog, Herb, was one of the highlights of the summer. Not only was it great being with Adam -- and Herb -- but I learned more about America by seeing it from the ground than reading dozens of reports.
One surprise was how jammed our Interstates are. Not because of more traffic than usual -- in fact, the economic doldrums have actually reduced traffic -- but because of all the highway construction and repair. The Interstates are among the first targets of government stimulus money.
Small comfort when we're moving 15 miles an hour on a road designed for 75, but at least good to know the money is getting out there, and our Interstates will be all the better for it.
Another surprise was how big a toll the recession is taking on Main Streets and malls across the country. I've never seen as much vacant retail and office space. Commercial real estate may be in bigger trouble than I imagined -- the next shoe to drop in an economy that's otherwise showing a few signs of life.
And it was easy to find rooms for the night. Even hotels and motels that normally wouldn't take in dogs as large as Herb were eager for the business.
No surprise there, but I was surprised by the number of foreign visitors -- mostly European and Asian -- on the roads, taking advantage of the bargain rates.
How could they afford it when most of their economies have been as battered by recession as ours?
Then the answer came to me: Their countries have far more generous social safety nets. With unemployment benefits covering a big portion of their prior salaries and extending up to a year, they had the money to spend seeing America.
All told, the view from the ground was sobering. I have to tell you, I didn't see many green shoots.
Ryssdal: Robert Reich is a professor of public policy at the University of California Berkeley.
Comments
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From boston, MA, 08/28/2009
Wow... this is news to both Reich and he assumes his listeners?! How out of touch can you get! None of this is news to anyone living in the real world. Nice of him to drop down from the Ivory Tower to pass amongst "the masses". I hope he did not catch that nasty swine flu on his trip that is so epidemic out there.
From Chevy Chase, MD, 08/28/2009
On his “sobering summer road trip” (8/26) Robert Reich says he was
"surprised by the number of foreign visitors -- mostly European and Asian -- on the roads, taking advantage of the bargain rates. How could they afford it when most of their economies have been as battered by recession as ours? Then the answer came to me: Their countries have far more generous social safety nets. With unemployment benefits covering a big portion of their prior salaries and extending up to a year, they had the money to spend seeing America."
He seems to think that unemployment benefits should be generous enough to pay for jobless Americans to vacation in Europe or Asia while they wait for things to turn up back home. There is an argument to be made for a broader social safety net, but this isn’t it. As a taxpayer, I am willing to subsidize basic living expenses of the unemployed: putting food on the table, basic shelter, utilities—but not European vacations.
From Portland, ME, 08/27/2009
J Van Til--
Obviously you don't know much about Robert Reich. He's lived in Massachusetts, a state that is frozen in winter. Yes, summer is road construction season and such construction is common in summer, but Reich's point is that there might have been a lot less of it as revenues have dried up in the recession were it not for the stimulus funds. These funds have helped to spur employment and stave off at least some deterioration of our transportation infrastructure. A deteriorated transportation infrastructure would be an impediment to economic recovery.
His observation about road construction was casual, but his point is correct.
From Austin, TX, 08/27/2009
I'm afraid Robert's impression of activity in lodging and malls may indeed be representative.
There is still a real possibility of another great depression. If we can 'confidence' our way out of it, that would be a good outcome, and the stimulus gamble is a good gamble in my opinion for this reason.
From Sunset, SC, 08/26/2009
What a premis:
Unemployeed people from Europe and Aisa can visit the US because those areas have a "better social safety net"? So, he came to that conclusion based on factual evidence or something he just made up because it fits his political agenda? Could a better reason be found in our weak Dollar?
And, as long as I can remember Summer has always equaled road construction - was this your first road trip Robert?
From Bellevue, WA, 08/26/2009
While Mr. Reich's comments about social safety net in european and asian being wider may be true for some countries lets also take in to consideration the spending habits in some other countries. My parents and many many others like them have lived within their means, invested wisely and saved considerably over last few decades.No i am not trying to say who is better and who is not but the point is, why some people can afford to spend now is also a function of their past spending habits and future needs. For eg my parents in India always planned for their future knowing very well that they had to look out not only for their lives but also for kids' education and all medical needs outside of living expenses. Now that the economy is improving ....its all paying off and and we are having a good time on our own road trip this summer. I am not an economist like Mr Reich but i just wanted say what i have practically seen.
From Alexandria, VA, 08/26/2009
As a recent graduate who studied economics and is currently on a road trip accross the Southwest with his dad, I took particular interest in Robert Reich's piece.
Being a proficient German speaker, I notoiced that the overwhelming number of German tourists at the Grand Canyon had the financial freedom to be there not so much as a result of their country's
social net, but because of how inexpensive our currency is. It seemed percilure to me that Reich failed to mention how the size of our national debt has underminned the value of our currency and how that has
also factored into the growth in tourism.
From roberta, GA, 08/26/2009
Four percent of the 700 billion dollar stimulus was devoted to highyway upgrades/repairs and secretary reich praises the importance of the national transportation network to the federal government? I drive 100,000 miles per year and I can assure you; more money has been wasted on signs telling us there is road work (courtesy of the president's vision of "reinvestment and recovery") than has been spent ON roadwork.
As for unemployed tourists...the last thing i would be concerned with after losing my job would be a vacation, no matter how generous the benefits.
From Bradley, ME, 08/26/2009
Hello,
Where do i find the names of the songs segments played between reports, please?
Thank you.
Bud
From CA, 08/26/2009
Does Mr. Reich not understand that the majority of the US is frozen during the winter and that road construction must be done in the summer? While interstates may be the first recipients of stimulus money, if he drives back in 5 years he'll find the same thing. Never been out of California obviously.
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