Thursday, July 30, 2009

NAOMI KLEIN ON A BIG PICTURE

The following was adapted from a speech on May 2, 2009 at The Progressive’s 100th anniversary conference and originally printed in The Progressive magazine, August 2009 issue:

We are in a progressive moment, a moment when the ground is shifting beneath our feet, and anything is possible. What we considered unimaginable about what could be said and hoped for a year ago is now possible. At a time like this, it is absolutely critical that we be as clear as we possibly can be about what it is that we want because we might just get it.

So the stakes are high.

I usually talk about the bailout in speeches these days. We all need to understand it because it is a robbery in progress, the greatest heist in monetary history. But today I'd like to take a different approach: What if the bailout actually works, what if the financial sector is saved and the economy returns to the course it was on before the crisis struck? Is that what we want? And what would that world look like?

The answer is that it would look like Sarah Palin. Hear me out, this is not a joke. I don't think we have given sufficient consideration to the meaning of the Palin moment. Think about it: Sarah Palin stepped onto the world stage as Vice Presidential candidate on August 29 at a McCain campaign rally, to much fanfare. Exactly two weeks later, on September 14, Lehman Brothers collapsed, triggering the global financial meltdown.

So in a way, Palin was the last clear expression of capitalism-as-usual before everything went south. That's quite helpful because she showed us-in that plainspoken, down-homey way of hers-the trajectory the U.S. economy was on before its current meltdown. By offering us this glimpse of a future, one narrowly avoided, Palin provides us with an opportunity to ask a core question: Do we want to go there? Do we want to save that pre-crisis system, get it back to where it was last September? Or do we want to use this crisis, and the electoral mandate for serious change delivered by the last election, to radically transform that system? We need to get clear on our answer now because we haven't had the potent combination of a serious crisis and a clear progressive democratic mandate for change since the 1930s. We use this opportunity, or we lose it.

So what was Sarah Palin telling us about capitalism-as-usual before she was so rudely interrupted by the meltdown? Let's first recall that before she came along, the U.S. public, at long last, was starting to come to grips with the urgency of the climate crisis, with the fact that our economic activity is at war with the planet, that radical change is needed immediately. We were actually having that conversation: Polar bears were on the cover of Newsweek magazine. And then in walked Sarah Palin. The core of her message was this: Those environmentalists, those liberals, those do-gooders are all wrong. You don't have to change anything. You don't have to rethink anything. Keep driving your gas-guzzling car, keep going to Wal-Mart and shop all you want. The reason for that is a magical place called Alaska. Just come up here and take all you want. "Americans," she said at the Republican National Convention, "we need to produce more of our own oil and gas. Take it from a gal who knows the North Slope of Alaska, we've got lots of both."

And the crowd at the convention responded by chanting and chanting: "Drill, baby, drill."

Watching that scene on television, with that weird creepy mixture of sex and oil and jingoism, I remember thinking: "Wow, the RNC has turned into a rally in favor of screwing Planet Earth." Literally.

But what Palin was saying is what is built into the very DNA of capitalism: the idea that the world has no limits. She was saying that there is no such thing as consequences, or real-world deficits. Because there will always be another frontier, another Alaska, another bubble. Just move on and discover it. Tomorrow will never come.

This is the most comforting and dangerous lie that there is: the lie that perpetual, unending growth is possible on our finite planet. And we have to remember that this message was incredibly popular in those first two weeks, before Lehman collapsed. Despite Bush's record, Palin and McCain were pulling ahead. And if it weren't for the financial crisis, and for the fact that Obama started connecting with working class voters by putting deregulation and trickle-down economics on trial, they might have actually won.

The President tells us he wants to look forward, not backwards. But in order to confront the lie of perpetual growth and limitless abundance that is at the center of both the ecological and financial crises, we have to look backwards. And we have to look way backwards, not just to the past eight years of Bush and Cheney, but to the very founding of this country, to the whole idea of the settler state.

Modern capitalism was born with the so-called discovery of the Americas. It was the pillage of the incredible natural resources of the Americas that generated the excess capital that made the Industrial Revolution possible. Early explorers spoke of this land as a New Jerusalem, a land of such bottomless abundance, there for the taking, so vast that the pillage would never have to end. This mythology is in our biblical stories-of floods and fresh starts, of raptures and rescues-and it is at the center of the American Dream of constant reinvention. What this myth tells us is that we don't have to live with our pasts, with the consequences of our actions. We can always escape, start over.

These stories were always dangerous, of course, to the people who were already living on the "discovered" lands, to the people who worked them through forced labor. But now the planet itself is telling us that we cannot afford these stories of endless new beginnings anymore. That is why it is so significant that at the very moment when some kind of human survival instinct kicked in, and we seemed finally to be coming to grips with the Earth's natural limits, along came Palin, the new and shiny incarnation of the colonial frontierswoman, saying: Come on up to Alaska. There is always more. Don't think, just take.

This is not about Sarah Palin. It's about the meaning of that myth of constant "discovery," and what it tells us about the economic system that they're spending trillions of dollars to save. What it tells us is that capitalism, left to its own devices, will push us past the point from which the climate can recover. And capitalism will avoid a serious accounting-whether of its financial debts or its ecological debts-at all costs. Because there's always more. A new quick fix. A new frontier.

That message was selling, as it always does. It was only when the stock market crashed that people said, "Maybe Sarah Palin isn't a great idea this time around. Let's go with the smart guy to ride out the crisis."

I almost feel like we've been given a last chance, some kind of a reprieve. I try not to be apocalyptic, but the global warming science I read is scary. This economic crisis, as awful as it is, pulled us back from that ecological precipice that we were about to drive over with Sarah Palin and gave us a tiny bit of time and space to change course. And I think it's significant that when the crisis hit, there was almost a sense of relief, as if people knew they were living beyond their means and had gotten caught. We suddenly had permission to do things together other than shop, and that spoke to something deep.

But we are not free from the myth. The willful blindness to consequences that Sarah Palin represents so well is embedded in the way Washington is responding to the financial crisis. There is just an absolute refusal to look at how bad it is. Washington would prefer to throw trillions of dollars into a black hole rather than find out how deep the hole actually is. That's how willful the desire is not to know.

And we see lots of other signs of the old logic returning. Wall Street salaries are almost back to 2007 levels. There's a certain kind of electricity in the claims that the stock market is rebounding. "Can we stop feeling guilty yet?" you can practically hear the cable commentators asking. "Is the bubble back yet?"

And they may well be right. This crisis isn't going to kill capitalism or even change it substantively. Without huge popular pressure for structural reform, the crisis will prove to have been nothing more than a very wrenching adjustment. The result will be even greater inequality than before the crisis. Because the millions of people losing their jobs and their homes aren't all going to be getting them back, not by a long shot. And manufacturing capacity is very difficult to rebuild once it's auctioned off.

It's appropriate that we call this a "bailout." Financial markets are being bailed out to keep the ship of finance capitalism from sinking, but what is being scooped out is not water. It's people. It's people who are being thrown overboard in the name of "stabilization." The result will be a vessel that is leaner and meaner. Much meaner. Because great inequality-the super rich living side by side with the economically desperate-requires a hardening of the hearts. We need to believe ourselves superior to those who are excluded in order to get through the day. So this is the system that is being saved: the same old one, only meaner.

And the question that we face is: Should our job be to bail out this ship, the biggest pirate ship that ever was, or to sink it and replace it with a sturdier vessel, one with space for everyone? One that doesn't require these ritual purges, during which we throw our friends and our neighbors overboard to save the people in first class. One that understands that the Earth doesn't have the capacity for all of us to live better and better.

But it does have the capacity, as Bolivian President Evo Morales said recently at the U.N., "for all of us to live well."

Because make no mistake: Capitalism will be back. And the same message will return, though there may be someone new selling that message: You don't need to change. Keep consuming all you want. There's plenty more. Drill, baby, drill. Maybe there will be some technological fix that will make all our problems disappear.

And that is why we need to be absolutely clear right now.

Capitalism can survive this crisis. But the world can't survive another capitalist comeback.

Friday, July 24, 2009

i heart david sirota

David Sirota

Political journalist, best-selling author and syndicated newspaper columnist
Posted: July 24, 2009 01:04 PM


Attack of the One-Percenters: Land Rover Liberals, Corrupt Cowboys & the Millionaire Media

The health care debate has reminded us that there really are three separate but coordinated armies that defend the status quo in Washington -- and will defend that status quo, whether on health care or any other economic issue. In my newspaper column today, I look at who these factions are, and what their motives are. You can read the column here.

In a nutshell, you have the Land Rover Liberals, many coming from the 14 out of 25 wealthiest congressional districts that Democrats now represent. Right now, their opposition to health care and tax reform is being led by Boulder, Colorado Rep. Jared Polis (D).

You also have the Corrupt Cowboys -- those lawmakers from very poor, mostly Southern and Western parts of the country. These people give themselves Americana sounding nicknames like "Blue Dog Democrats" or "Main Street Republicans" so as to pretend their opposition to health care comes from their being down home guys "representin' the folks back home." Of course, these same lawmakers are among the most rapacious corporate fundraisers and lobbyist-connected insiders in Congress. And as I pointed out yesterday, there's no evidence that the districts and states the Corrupt Cowboys represent despise health reform by virtue of the fact that they are culturally conservative bastions. In fact, Nate Silver says there's exactly the opposite evidence:

There's not really any evidence that health care reform is unpopular in the Blue Dog districts. Although there are exceptions, most of the Blue Dog districts are fairly poor. A Quinnipiac poll released earlier this month suggested that while 53 percent of voters overall think "think it's the government's responsibility to make sure that everyone in the United States has adequate health care," 61 percent of voters making under $50,000 do. Also, while Quinnipaic did not break out the results for moderate and conservative Democrats, which are plentiful in these Districts, one can reasonably infer them. In this poll, 79 percent of liberals agreed with the statement as did 77 percent of Democrats -- not a very big difference. Since almost all liberals are Democrats and about half of all Democrats are liberals, that suggests that support for health care reform among non-liberal Democrats is something like 75 percent.

Thus, the story about the honest, god-fearing, good ol' boy cowboys opposing health care reform out of representational obligation has only been able to become conventional wisdom through the Millionaire Media -- the elite national press corps, chock full of very wealthy people, that disseminates the most pernicious kind of anti-reform propaganda. These are the same people who insisted we should immediately rush $12 trillion in bailout cash out to Wall Street speculators, and who now insist that 64 years of debates over a $1 trillion health care proposal is inappropriately "rushing" health care reform. They are also the voices who are actually deriding health care reform as an inhumane proposal to legislatively waterboard the poor, persecuted richest one percent.

In the column, I look at the motives of all these groups, and give President Obama huge props for taking them on. As a sometime critic of Obama, I really think he's doing a fantastic job right now, and the news this morning from the New York Times that "the president planning trips across the country" to campaign for health care reform is just fantastic. He's going to have to take on the three groups I discuss in my column -- and if he can beat them, we're going to get universal health care.

Read the whole column here.

The column relies on grassroots support -- and because of that support, it is getting wider and wider circulation (a big thank you to all who have helped with that). So if you'd like to see my column regularly in your local paper, use this directory to find the contact info for your local editorial page editors. Get get in touch with them and point them to my Creators Syndicate site. Thanks, as always, for your ongoing readership and help contacting local editors. This column couldn't be what it is without your help.

===================


tallahassee.com

July 24, 2009

David Sirota: 1-percenters launch attack on health care

David Sirota
Creators Syndicate

Here's a truism: The wealthiest 1 percent have never had it so good.

According to government figures, 1-percenters' share of America's total income is the highest it has been since 1929, and their tax rates are the lowest they've faced in two decades. Through bonuses, many 1-percenters will profit from the $23 trillion in bailout largesse the Treasury Department now says could be headed to financial firms.

And, most of them benefit from IRS decisions to reduce millionaire audits and collect zero taxes from the majority of major corporations.

But what really makes the ultra-wealthy so fortunate, what truly separates this moment from a run-of-the-mill Gilded Age, is the unprecedented protection the 1-percenters have bought for themselves on the most pressing issues.

To review: With 22,000 Americans dying each year because they lack health insurance, Congress is considering universal health care legislation financed by a surcharge on income above $280,000 — that is, a levy almost exclusively on 1-percenters. This surtax would graze just 5 percent of small businesses and would recoup only part of the $700 billion the 1-percenters received from the Bush tax cuts.

In fact, it is so minuscule, those making $1 million annually would pay just $9,000 more in taxes every year — or nine-tenths of 1 percent of their 12-month haul.

Nonetheless, the 1-percenters have deployed an army to destroy the initiative before it makes progress.

The foot soldiers are the Land Rover Liberals. These Democratic lawmakers secure their lefty labels by wearing pink-ribbon lapel pins and supporting good causes like abortion rights. However, being affluent and/or from affluent districts, they routinely drive their luxury cars over middle-class economic interests. Hence, this week's letter from dot-com tycoon Rep. Jared Polis, D-Boulder, Colo., and other Land Rover Liberals calling for the death of the surtax.

Echoing that demand are the Corrupt Cowboys — those like Sen. Max Baucus, D-Mont., who come from the heartland's culturally conservative and economically impoverished locales. These cavalrymen in both parties quietly build insurmountable campaign war chests as the biggest corporate fundraisers in Congress. At the same time, they publicly preen as jes' folks, make twangy references to "voters back home," and now promise to kill the health care surtax because they say that's what their communities want. Cash payoffs made, re-elections purchased, the absurd story somehow goes that because blue-collar constituents in Flyover America like guns and love Jesus, they must also reflexively adore politicians who defend 1-percenters' bounty.

That fantastical fairly tale, of course, couldn't exist without the Millionaire Media — the elite journalists and opinionmongers who represent corporate media conglomerates and/or are themselves extremely wealthy. Ignoring all the data about inequality, they legitimize the assertions of the 1-percenters' first two battalions, while actually claiming that America's fat cats are unfairly persecuted.

For example, Washington Post editors deride surtax proponents for allegedly believing "the rich alone can fund government." Likewise, Wall Street Journal correspondent Jonathan Weisman wonders why the surtax "soak(s) the rich" by unduly "lumping all of the problems of the finances of the United States on 1 percent of (its) households?"

And most brazenly, NBC's Meredith Vieira asks President Obama why the surtax is intent on "punishing the rich?"

For his part, Obama has responded with characteristic coolness — and a powerful counter-strike. "No, it's not punishing the rich," he said.

"If I can afford to do a little bit more so that a whole bunch of families out there have a little more security, when I already have security, that's part of being a community."

If any volley can thwart this latest attack of the 1-percenters, it is that simple idea.

# David Sirota is the bestselling author of "Hostile Takeover" (2006) and "The Uprising" (2008). Contact him at ds@davidsirota.com.

Thursday, July 23, 2009

On postmodern law

To continue.....completely unedited (sorry - may spruce up later) -- --

Of course, I really should and will go research what others have written about Integral and postmodern law, especially at Integral research sites like Wilber's and Cohen's.

Off the cuff, I'd say that green law holon recognizes the untouchable, sacrosanct, in a sense nature of the Rational transformative orange European Enlightenment-informed principles of separation of church and state and full individual rights, but understands that with time, history, development, growth, regress, evolution, temporary devolution, progress, reaction, etc. the CONTEXT of those golden rules changes and so the Constitution can be applied to new situations and new agencies of consciousness (people and compassionately extending down, ultimately to rocks lol). Well, of course, an obvious example is Women's Suffrage, not achieved until 1920, and banning segregation by race in public schools, and public facilities, and on and on. Actually that's a modern/postmodern outlook. Anyone who thinks the Constitution is a dead document is a frozen amber level mythic/membership believer -- except that postmodern relativistic pluralism often is ill in-formed by pre-trans confusions and is arrested in its development to integral pluralism; this is a legitimate gripe by the right, and one that progressives need to address, and that includes all other distorted translations of that pathology (political correctness afraid of true holarchy, run amok).

Tuesday, July 14, 2009

Holonic AQAL question

Sotomayor's green postmodern pluralism flummoxes amber/orange (or SD- blue/orange) conservative Sens. - but postmodern relative pluralism IF healthy not pre-trans "infected" - what is the healthy iteration for the law, for a judge, for a court for that?

Comments from other AQAL or SD students and interested welcome. I'll ponder on it meself.

Wednesday, July 08, 2009

Matt Taibbi turns over a boulder!

MATT TAIBBI THROWS SOME BURNING SUNLIGHT ON GOLDMAN SACHS! MUST-READ - CLICK HERE


My comment at the site:

You hit it out of the ballpark, Matt T. Great! Dynamite!

And I urge everyone to support CAMPAIGN FINANCE REFORM - it's the only way we can possibly escape becoming the banana republic we're fast becoming -

Go to: Change Congress and Change Congress's Partners

and

Like slowing down Global Heating, I have hope, in the face of grim evidence. for a true democratic republic, not a corrupt corporocratic plutocracy.

I HAPPEN TO LIKE KRUGMAN AND RICH

I'm not, as anyone who has read this blog knows, not a dummy for corporate mainstream news publications.


The New York Times
Printer Friendly Format Sponsored By

July 5, 2009
Op-Ed Columnist
Bernie Madoff Is No John Dillinger
By FRANK RICH

THE judge condemned Bernie Madoff’s crimes as “extraordinarily evil.” The New York Daily News, whose publisher was a Madoff victim, chose “The Pariah” as its front-page headline and promised that the dastardly villain would suffer “everlasting consumption in the jaws of the devil.” The Times declared that the Madoff case, by attaching a human face to a financial meltdown that produced fear, panic and loss, had “put an entire era on trial.”

But for all this rhetorical thunder, Madoff’s 150-year sentence still seemed an anticlimax, as if the trial of the century had ended without a verdict. There was no national catharsis. The news landed with something of a thud. On the most-watched network newscast, “NBC Nightly News,” it received second billing to Day Four of updates on Michael Jackson’s death.

Madoff, it turned out, was no Public Enemy No. 1 to rival John Dillinger, the Great Depression thug at the center of Hollywood’s timely release this holiday weekend, “Public Enemies.” In the context of our own Great Recession, Madoff’s old-fashioned Ponzi scheme was merely a one-off next to the esoteric (and often legal) heists by banks and bankers. They gamed the entire system, then took the money and ran before the bubble burst, sticking the rest of us with that fear, panic and loss.

The estimated $65 billion involved in Madoff’s flimflam is dwarfed by the more than $2.5 trillion paid so far by American taxpayers to bail out those masters of Wall Street’s universe. A.I.G. alone has already left us on the hook for $180 billion. It’s hard for those who didn’t have money with Madoff to get worked up about him when so many of the era’s real culprits have slipped away scot-free. Already some of those same players are up to similarly greedy shenanigans again now that the coast seems to be clear.

Washington had no choice but to ride to their rescue last fall to prevent even greater systemic catastrophe. But that rescue is tainted. As the economist Joseph Stiglitz wrote in this month’s Vanity Fair, “In the developing world, people look at Washington and see a system of government that allowed Wall Street to write self-serving rules which put at risk the entire global economy — and then, when the day of reckoning came, turned to Wall Street to manage the recovery. They see continued re-distributions of wealth to the top of the pyramid, transparently at the expense of ordinary citizens.”

Not just in the developing world, but in America. Look at what we saw last week alone.

To beat out the implementation of new regulations, banks are rapidly jacking up checking-account charges and credit card fees, even for those who have paid their bills on time. As Eric Dash of The Times reported on Thursday, the institutions that received the most bailout loot are often the biggest offenders.

That would include the too-big-to-fail Citigroup, which has so far received $45 billion in taxpayers’ money, along with guarantees on $300 billion in toxic assets, to mitigate its reckless risk-taking during the reign of such obscenely rewarded (and now departed) executives as Charles Prince and Robert Rubin. While taxpayers will soon own some 34 percent of Citi, it is not only increasing our credit card interest rates (to nearly 30 percent in some cases) but raising its own base salaries (by 50 percent) to work around Washington’s new restrictions on bonuses. New rules may come and go, but loopholes remain eternal.

We also have learned, from The Wall Street Journal on Thursday, that Goldman Sachs, another bailout recipient, is on track to pay its employees an average of $700,000 each in 2009, which, incredibly, is a bit higher than its compensation average in the pre-crash year of 2007. In a scathing and controversial new article in Rolling Stone, Matt Taibbi accuses Goldman of having earned such rewards by engineering “every major market manipulation since the Great Depression.”

What’s uncontroversial and indisputable is that Goldman alumni have played key roles in both the Bush and Obama administrations’ responses to the current crisis — even though Goldman has a big stake in the outcome. The dense revolving-door conflicts of interest are appalling. Goldman is howling about Taibbi’s article, but the bottom line was articulated last week by the economic blogger Felix Salmon of Reuters. He wrote that he couldn’t “think of a single government regulation over the past couple of decades which has remotely harmed Goldman Sachs” as opposed to the many that “have done it a world of good.”

Goldman also rules at the New York Fed, a supposed monitor of Wall Street. Until May the Fed’s chairman was serving simultaneously on the Goldman board; he resigned only after The Wall Street Journal reported that he was also still buying Goldman stock during his Fed tenure. At least that other failed watchdog, the Securities and Exchange Commission, has now cleaned house. But Politico reported last week that its new chairwoman, Mary Schapiro, had been the star draw at a lavish June banquet for the S.E.C. Historical Society, an independent organization that sold tables for up to $7,500 to “law and lobbying firms that do business with the S.E.C.” Among the buyers: Standard & Poor’s, a credit ratings agency that enabled the subprime bubble by giving its approval to wildly speculative derivatives.

It’s against this grand backdrop of business-as-usual at the top of the pyramid that we learned at week’s end that the speed of job losses is accelerating again. The government also reported that Americans who still do have jobs now have an average 33-hour workweek, the lowest since tracking began in 1964.

The Obama administration’s response to the economic crisis is rapidly facing its own stress tests. We will soon learn the ultimate fate and stringency of the regulatory package sent to Congress, including the consumer-protection agency the banks want to maim or kill. The stimulus’s ability to put Americans back to work remains an open question. Should we have a jobless recovery or, worse, a second-wave recession like the one that blindsided F.D.R. in 1937, it will be as catastrophic for the Democrats as it will be for the country.

Barney Frank seems to understand the political dynamic better than the White House. He told bankers back in February, “People really hate you, and they’re starting to hate us because we’re hanging out with you.” If the administration wants to be reminded of how quickly today’s already sour mood can turn rancid, Michael Mann’s haunting “Public Enemies” could not be a more apt refresher course. The casting alone tells you where the audience’s sympathies will lie: Dillinger is played by America’s reigning male sweetheart, Johnny Depp, while his G-man pursuer, Melvin Purvis, is in the hands of the thorny Christian Bale.

“Public Enemies” doesn’t make a federal case of parallels between its era and ours. It doesn’t have to. But it’s instructive to revisit the actual history. In the book that inspired the film, the journalist Bryan Burrough writes that Detective magazine polled movie theater owners during Dillinger’s yearlong spree of 1933-34, and found that in terms of drawing audience applause Public Enemy No. 1 beat out F.D.R. and Charles Lindbergh. Roosevelt ran with it. As Steve Fraser writes in his cultural history of Wall Street, “Every Man a Speculator,” F.D.R. “likened his Wall Street villains to ‘kidnappers and bank robbers’ eluding capture” in his 1936 re-election campaign. He knew Wall Street manipulators were the real targets of the public’s ire.

Another look at this much-chronicled past, “Dillinger’s Wild Ride,” by Elliott J. Gorn, a professor of history at Brown University, is the first to be published during our own hard times. In it you learn that ordinary law-abiding Americans even wrote letters to newspapers and politicians defending Dillinger’s assault on banks. “Dillinger did not rob poor people,” wrote one correspondent to The Indianapolis Star. “He robbed those who became rich by robbing the poor.”

Gorn writes that the current economic crisis helped him understand better why Americans could root for a homicidal bank robber: “As our own day’s story of stupid policies and lax regulations, of greedy moneymen, free-market hucksters, white-collar thieves, and self-serving politicians unfolds, and as banks foreclose on millions of families’ homes, workers lose their jobs, and life savings disappear, it becomes clear why Dillinger’s wild ride so fascinated America during the 1930s.” An outlaw could channel a people’s “sense of rage at the system that had failed them.”

As Gorn reminds us, Americans who felt betrayed didn’t just take to cheering Dillinger; some turned to the populism of Huey Long, or to right-wing and anti-Semitic demagogues like Father Coughlin, or to the Communist Party. The passions unleashed by economic inequities are explosive because those inequities violate the fundamental capitalist faith. It’s the bedrock American dream that virtues like hard work and playing by the rules are rewarded with prosperity.

In 2009, too many who worked hard and played by the rules are still suffering, while too many who bent or broke the rules with little or no accountability are back reaping a disproportionate share of what scant prosperity there is. The tepid national satisfaction taken in Bernie Madoff’s terminal prison sentence should be a warning to the White House. In the most devastating economic catastrophe since Dillinger’s time, many Americans know all too well that justice has yet to be served.


Copyright 2009 The New York Times Company

OBAMA: LISTEN TO KRUGMAN, THIS TIME, PLEASE

July 3, 2009
Op-Ed Columnist
That ’30s Show
By PAUL KRUGMAN

O.K., Thursday’s jobs report settles it. We’re going to need a bigger stimulus. But does the president know that?

Let’s do the math.

Since the recession began, the U.S. economy has lost 6 ½ million jobs — and as that grim employment report confirmed, it’s continuing to lose jobs at a rapid pace. Once you take into account the 100,000-plus new jobs that we need each month just to keep up with a growing population, we’re about 8 ½ million jobs in the hole.

And the deeper the hole gets, the harder it will be to dig ourselves out. The job figures weren’t the only bad news in Thursday’s report, which also showed wages stalling and possibly on the verge of outright decline. That’s a recipe for a descent into Japanese-style deflation, which is very difficult to reverse. Lost decade, anyone?

Wait — there’s more bad news: the fiscal crisis of the states. Unlike the federal government, states are required to run balanced budgets. And faced with a sharp drop in revenue, most states are preparing savage budget cuts, many of them at the expense of the most vulnerable. Aside from directly creating a great deal of misery, these cuts will depress the economy even further.

So what do we have to counter this scary prospect? We have the Obama stimulus plan, which aims to create 3 ½ million jobs by late next year. That’s much better than nothing, but it’s not remotely enough. And there doesn’t seem to be much else going on. Do you remember the administration’s plan to sharply reduce the rate of foreclosures, or its plan to get the banks lending again by taking toxic assets off their balance sheets? Neither do I.

All of this is depressingly familiar to anyone who has studied economic policy in the 1930s. Once again a Democratic president has pushed through job-creation policies that will mitigate the slump but aren’t aggressive enough to produce a full recovery. Once again much of the stimulus at the federal level is being undone by budget retrenchment at the state and local level.

So have we failed to learn from history, and are we, therefore, doomed to repeat it? Not necessarily — but it’s up to the president and his economic team to ensure that things are different this time. President Obama and his officials need to ramp up their efforts, starting with a plan to make the stimulus bigger.

Just to be clear, I’m well aware of how difficult it will be to get such a plan enacted.

There won’t be any cooperation from Republican leaders, who have settled on a strategy of total opposition, unconstrained by facts or logic. Indeed, these leaders responded to the latest job numbers by proclaiming the failure of the Obama economic plan. That’s ludicrous, of course. The administration warned from the beginning that it would be several quarters before the plan had any major positive effects. But that didn’t stop the chairman of the Republican Study Committee from issuing a statement demanding: “Where are the jobs?”

It’s also not clear whether the administration will get much help from Senate “centrists,” who partially eviscerated the original stimulus plan by demanding cuts in aid to state and local governments — aid that, as we’re now seeing, was desperately needed. I’d like to think that some of these centrists are feeling remorse, but if they are, I haven’t seen any evidence to that effect.

And as an economist, I’d add that many members of my profession are playing a distinctly unhelpful role.

It has been a rude shock to see so many economists with good reputations recycling old fallacies — like the claim that any rise in government spending automatically displaces an equal amount of private spending, even when there is mass unemployment — and lending their names to grossly exaggerated claims about the evils of short-run budget deficits. (Right now the risks associated with additional debt are much less than the risks associated with failing to give the economy adequate support.)

Also, as in the 1930s, the opponents of action are peddling scare stories about inflation even as deflation looms.

So getting another round of stimulus will be difficult. But it’s essential.

Obama administration economists understand the stakes. Indeed, just a few weeks ago, Christina Romer, the chairwoman of the Council of Economic Advisers, published an article on the “lessons of 1937” — the year that F.D.R. gave in to the deficit and inflation hawks, with disastrous consequences both for the economy and for his political agenda.

What I don’t know is whether the administration has faced up to the inadequacy of what it has done so far.

So here’s my message to the president: You need to get both your economic team and your political people working on additional stimulus, now. Because if you don’t, you’ll soon be facing your own personal 1937.

Home

Copyright 2009 The New York Times Company

Sunday, July 05, 2009

Ending to the greatest film of all time



Clarke and Kubrick were "talking" evolution, back in 1966-67, when it was just catching on that evolution went past the biological.

Friday, July 03, 2009

Palin's latest odd moment

Sarah Palin said today , "We are fishermen; we know only DEAD fish go with the flow." Naked phobia about the green holon from the amber/orange one. I like its directness, even though I think she be knuclehead/dragger.