Former Secretary of Labor under President Clinton, economics professor Robert Reich, has written another nice post on his blog about the need for President Obama to educate the American public about important issues such as taxes and deficits.

It’s a good and understandable read.  Among his points is one that the federal budget is not like the family  budget.  You expand the federal budget during recessions, in part to minimize the recession because demand from the private sector falls off a cliff but also to help set the stage for recovery.  Once recovery occurs, revenues increase dramatically and, if the government is responsible (and there’s the real rub, we haven ‘t had a responsible Congress) deficits can be lowered.

Targeted tax cuts can help too, but not general tax cuts like those passed under the previous Bush administration.  Across the board tax cuts don’t increase demand for the things businesses make.  Business needs to see demand and in a recession where demand drops way off business won’t have any confidence to boost production.

If you don’t believe this reasoning, ask how many new jobs, net, were created by the private sector after the Bush tax cuts.  Answer: zero.   And that was before the recession.

Which is why there’s always been a strong call for the government to help produce jobs.

Reich also makes the solid point that most states and local governments are required by law to balance their budgets.  So they are cutting a wide swath of jobs nationwide.  Which of course increases the unemployment rate, which further decreases demand for all goods and services.  Which makes the recession more severe and government budgets more restricted due to the fall in revenues.

Saving an existing job has the same economic effect of creating a new one.  Reich believes the federal government should aim a good part of any new stimulus money to shoring up beleaguered state and local government budgets.

That’s why the education of the public is so important.  Right now all anyone hears is that the deficits are too high, spending is out of control and just like families, the government needs to pull back.  Unfortunately for the public, if they buy into this idea then their circumstances are likely to get much worse instead of better.

After the way the private health insurance industry completely warped  understanding of health care reform, both in the public’s mind and in the minds of Republican Senators, Obama has to get to work.

He’s a good teacher and he’s got some serious explaining to do.