The Hypocrisy and Failure of Ideology
Posted: November 13, 2011 Filed under: #Occupy and We are the 99 percent!, immigration, income inequality | Tags: Republicans and Libertarians are idiots and arguing with them is a waste of time, Tyler Cowen 18 Comments
I have been fascinated by the 1920s and 1930s for as long as I can remember. This was the period of the ‘modern age’ in which scientists like Einstein were cultural icons. U.S. presidents included the two Roosevelts, who spent much of their time trying to rein in the excesses of too much power in the hands of too few people. There was a very good reason that the big huge corporate CEOS of their day were called robber barons.
It was a culturally rich period also. Cultural and religious conservatives who tried to put alcohol consumption in a lock box actually ushered in a period of backlash that brought us jazz, the rights of women, and advances in art and architecture. The oppression of the many by the uptight actually brought on a cultural renaissance from the ranks of the fed up. My grandparents’ generation were probably the first of American’s youth who decided that the game was rigged against them.
It seems like we would be ripe for similar changes today. We have both the robber barons and the nastiness of culture/religionist warriors. What we don’t have is a healthy respect for science, discovery, data, and the geology of our country and a leadership class that has a significant number of people that aren’t completely wound up in either baseless ideology and/or religious narrowness. You may have read that Einstein was a popular figure back in the day. Can you imagine any scientist or professor reaching pop status in this day and age–let alone a theoretical physicist? The only person that may have rivaled him in popularity at the time was Charlie Chaplin. Both were immigrants. Both escaped an oppressive class system and in Einstein’s case, violent, hateful anti-antisemitism. Our country is supposed to not have a ruling class and it’s supposed to respect all religions as part of its heritage. All that seems lost on today’s ideologues.
Let’s just say my heroes have never been reactionaries but visionaries.
It makes no sense to me to continue to support and push failed hypotheses. However, the folks who have taken over the Republican Party–as well as some Democrats these days–do just that. They have no respect for science, professionals in most fields, researchers, data, or modernity. They just keep spinning yarns and making villans out of the US intelligentsia. Frankly I find it quite scary. Many of our modern immigrants–like Albert Einstein–came here from fascist states or states that persecuted minorities and would not let them pursue research agendas that flew in the face of fascist governments or oppressive religious institutions. Because of our openness to rational thought and constitutional protection of minority opinions, researchers in the United States made important discoveries. Just think how the sequencing of the human genome has validated the theory of evolution beyond anything we thought possible as well as opened the door to new therapies for old diseases. Yet, we have a series of cretins in charge or running for office who consider those brilliant discoveries on the same level as a creation myth. We have made many discoveries in climate science, and yet full scale denial of reality is a going business. Fomenting hate and ignorance is an industry in this country right now.
The same is the case with my field of economics. We continue to see the rise of thoroughly wrong concepts because denying reality serves the the interests of a few rich and powerful but ignorant people. The arguments never turn on the research. Like religion, they turn on what people want to believe is true. Easy answers do not necessarily represent the truth. We badly need a Renaissance of scientific thought in this country. We will never capture any more “firsts” in anything until we reach for the stars and stop grabbing at easy, unsupported answers. Many of our politicians should be placed in the category of flat earthers.
The NYT had an interesting commentary up today by economist Tyler Cowen that both raises the flag on the reliance of “conservatives” and “libertarians” on failed memes rather than evidence, yet paradoxically pushes its own set of really stupid canards. Even the title is disturbing. “Whatever Happened to Discipline and Hard Work?” implies that the kids in the Occupy movement and disgruntled others in this country are lazy basement dwellers who hate wealthy people. Cowen wants to turn the conversation away from wealth to values. This is an extremely slippery slope that rests on some really bad assumptions. He also has a rather limited definition of “values”.
Right wingers seem to think that the Occupy movement hates people because they are rich or wealthy. I even saw some one on MSNBC ask why OccupyLA doesn’t focus on the richies in the movie industry. Aren’t Hollywood stars worthy of contempt also? ( I do admit to disliking Tom Cruise and Julia Roberts, but it is because they waste perfectly good screen time and take up roles that could go to talented actors. It isn’t because of their money.) This is the false identification of the movement as ‘class war.’
The Occupy movement does not hate the wealthy or have it in for anyone who makes money in a creative or legitimate way. Ben Roethlisberger may be a perfectly loathsome human being, but he got his money by developing a talent that’s in high demand. No one hates him for his money. The Occupy movement is against people that get wealthy through ‘crony capitalism,’ which means they set up a system through buying political influence that allows them to draw wealth away from others. One of Cowen’s first paragraphs absolutely made me cringe. Does he really think that all CEOs are Hank Reardon? (Yes, I read that corny book in high school.)
The United States has always had a culture with a high regard for those able to rise from poverty to riches. It has had a strong work ethic and entrepreneurial spirit and has attracted ambitious immigrants, many of whom were drawn here by the possibility of acquiring wealth. Furthermore, the best approach for fighting poverty is often precisely not to make fighting poverty the highest priority. Instead, it’s better to stress achievement and the pursuit of excellence, like a hero from an Ayn Rand novel. These are still at least the ideals of many conservatives and libertarians.
The egalitarian ideals of the left, which were manifest in a wide variety of 20th-century movements, have been wonderful for driving social and civil rights advances, and in these areas liberals have often made much greater contributions than conservatives have. Still, the left-wing vision does not sufficiently appreciate the power — both as reality and useful mythology — of the meritocratic, virtuous production of wealth through business. Rather, academics on the left, like the Columbia University economists Joseph E. Stiglitz and Jeffrey D. Sachs among many others, seem more comfortable focusing on the very real offenses of plutocrats and selfish elites.
Yes, the United States still has a regard for the rags to riches story. However, Bernie Maddoff and Raj Rajaratnam are more typical these days of the kinds of wealth amassed in this country than that amassed by a Thomas Edison. Back in Teddy Roosevelt’s time, there was just as much outcry against the slash and burn capitalism practiced by John D Rockefellar and J.P Morgan as there is today in the multigenerational Occupy movement. It is one thing to gain wealth by inventing something worthwhile and bringing it to market, it is completely another to use practices that lead to monopoly power. Sachs and Stiglitz do not begrudge Warren Buffet his success. They rightly point out how trust fund babies like the Koch brothers use their funds to produce bad science and fund flat earth politicians simply to get more rich and more powerful. No one hates the wealthy. Americans hate crooks and there are plenty of them in the finance industry these days. They should be put in jail just like any one who steals.
So, then Cowen comes down to some brass tacks that recognize that Hank Reardon is a fictional character that came from the mind of one woman with a challenging personal history that made her do and write some really odd things. He makes the argument that I have; nevertheless, he still believes that those of us that eschew his labels are doing anything other than attacking the wealthy. For some reason, he’s the only one able to see the subtleties.
The first problem is that higher status for the wealthy can easily lead to crony capitalism. In public discourse social status judgments are often crude. Critical differences are lost, like the distinction between earning money through production for consumers, as Apple has done, and earning money through the manipulation of government, which heavily subsidized agribusinesses have done. The relevant question, in my view, is not about how much you have earned but about how you have earned it. To further confuse matters, many right-wing Republican politicians supported corporate bailouts and corporate welfare far beyond what was necessary to stabilize the economy, in doing so further muddying the difference between productive and predatory capitalism.
If you want to talk values, then you have to talk about the number of businesses that have been able to buy political power and create laws that allow them to extract benefits that are not available to anyone else. In contrast, you’ve got a ton of kids in Occupy that have student loans, degrees, and no jobs. This doesn’t exactly fit the stereotype of lazy, hippie basement dweller that the right loves to push on Fox News. Oh, and we even have Republican Congress Critterz saying that it’s some lack of moral fiber to not hold three jobs down while going to get a degree. I’ll hold my own personal experience up here. I put myself through two degrees working full time, selling my football tickets, and not taking student loans in the 70s and 80s with my then husband who had a four year scholarship for a perfect SAT score. I could not do that now. My kids both worked to pay their overhead nearly full time with their tuition paid by us. If we hadn’t saved for that back in the day, they’d have student loans too. Actually, Doctor Daughter now has huge student loans. We just saved for normal degrees, not the cost of med school. My expenses just have increased more than my salary has the last 10 years. So, I worked full time to get all of my degrees. I still could not swing the last ones without student loans. Then there’s the fact that the unemployment rate is so bad, you’re lucky if you can even get a job in a restaurant in most college towns. Some of these memes just don’t stand up to hard, cold reality. That, however, does not count for the spinmeisters of the right. It’s still some personal shortcoming to get any kind of help from some one else.
There is another meme mentioned here that I totally hate. The idea that there’s this bunch of people that are “tax weary” out there when we have some of the lowest taxes on the books in modern history. Thank goodness Cowen at least mentioned that all those tax cuts we’ve had recently have not done a damn thing to create jobs or “spur” the economy. They’ve just created a deficit debacle that’s put the country’s public goods and assets in jeopardy.
Conservatives’ own culture, and the sheer desire to validate wealth, discipline and reward through law and the tax code, may have convinced them that the tax cuts have been beneficial. Measuring the actual effects of a tax cut isn’t always their main concern, even if they sometimes cite such numbers for rhetorical purposes. They feel in their bones that antagonism toward the rich is a dead end and so don’t favor highly progressive taxes.
That rhetorical line appeals to tax-weary voters, and seems part of a core conservative vision, but it is treading on dangerous ground because it moves away from testable theory: those tax cuts have already been in place for many years, yet it remains to be seen when or if they will spur the economy.
So, we get a short bit on how that entire canard doesn’t stand up to testing, data, or scientific inquiry. However, when Cowen switches to beating up on the poor, we have paragraph after paragraph of data free statements. How can you go on and on about personal responsibility when right now our issue is the lack of jobs and the loss of real income by the majority of the public? Are those stylized facts lost to him? Why is it that being down and out always has something to do with personal shortcomings and not something like incredibly high hospital bills or a mortgage that you got based on a rigged game?
Conservatives often believe that much of the poverty in the United States is an issue of insufficient discipline and conscientiousness. In this view, not all children grow up inculcated with a strong enough devotion to education and career. Yet how can such a culture of discipline be spread? At least as far back as John Bright, a classical liberal in Victorian England, it has been argued that society should grant respect to business creators and to stern parents who instill discipline. And today, conservatives often say that supportive economic policy, including lighter taxation and greater freedom from regulation, will support this vision.
BUT are such moves, when carried out, actually shifting popular culture in a properly disciplined and conscientious direction? Not really. In fact, in the United States, the red states, where conservatives are more powerful, tend to have higher divorce rates and weaker educational systems than do blue states. Many Americans have not been personally persuaded by all the talk about pro-wealth and pro-discipline norms, least of all in the geographic strongholds of conservatism.
The counterintuitive tragedy is this: modern conservative thought is relying increasingly on social engineering through economic policy, by hoping that a weaker social welfare state will somehow promote individual responsibility. Maybe it won’t.
So what’s the real problem according to this economist?
It seems it’s divorce and lax child rearing. Again, with the cultural crap and not with the fact that for about 30 years our country has passed laws that go out of their way to promote the interests of the wealthiest at the expense of the weak. It’s not explicitly stated in the op ed, but I have these visions of of Cowen thinking everything would be easily solved if women would just be forced to stay slaves in a marriage, stay home and forget work, and beat their children into submission. Is this really the best way to tackle income inequality or lack of jobs for the jobless? Dr. Cowen seems to believe in libertarianism in certain circumstances. He’s just okee dokee about having government tell us what’s culturally or morally correct by shoving his old time religion–with its designed slavery paradigm–down our throats.
What about the “values” of paying a living wage for a hard day’s work? What about the “values” of not stealing from people? What about the “values” of not lying to people about what low taxes have actually done to our government and to our economy? And, if you’re such a great Christian, what about all those values listed in the Beatitudes in the new testament? You know the ones about being your brother’s keeper, and practicing charity, and helping the poor? That’s the one thing I’ve really noticed about all these folks espousing “values”. They want to deny abortions to poor women and everyone else, but they’ll be the first ones to the clinic with their daughters should they become pregnant. (That’s a true story, btw, told to me by one of the abortion providers in Omaha. Big anti-choice activist had him do an abortion on her daughter on an early Sunday morning and was back on the picket line by Monday.)
Here’s Cowen’s ending.
Nonetheless, higher income inequality will increase the appeal of traditional mores — of discipline and hard work — because they bolster one’s chances of advancing economically. That means more people and especially more parents will yearn for a tough, pro-discipline and pro-wealth cultural revolution. And so they should.
What this man needs to do is get off his high horse and spent more time looking at the job market numbers. If he truly believes in rational thought, then he should be able to do better than give a sermon in the NYT.
Just for an added thought, here’s what Mark Thoma had to say:
I am not a sure as he is that as inequality continues to increase, people will adopt conservative values rather than wondering why the playing field needed for those conservative values to express themselves has become increasingly unfair. And if they do conclude it’s unfairness rather than values that is at the root of the growth in inequality, their reaction may be different.
(Also, my view of what is behind society’s problems is also quite different from Tyler’s. I suppose this makes me one of the “academics on the left” who “seem more comfortable focusing on the very real offenses of plutocrats and selfish elites,” but I’ll note that Tyler seems quite comfortable focusing on the problems posed by “today’s elites” himself, i.e. the impediment they pose to the cultural values he’d like to see take hold. The comments on wealth and crony capitalism are also not far from complaints about plutocracy. We on the left have values that we believe in every bit as much as conservatives, but those values differ from those held by conservatives in important ways and that will naturally lead us to focus on different aspects of these problems. The fact that we talk about issues such as crony capitalism and powerful elites does not mean we have abandoned those values any more than it means Tyler has abandoned his values when he raises these issues himself. All it says is that the path to reach these values differs from the path preferred by conservatives.)
Sorry, this ran on so long; but I think, therefore, I occasionally have to rant.
Super Pac Founded by Karl Rove Targets Elizabeth Warren with Attack Ads
Posted: November 10, 2011 Filed under: #Occupy and We are the 99 percent!, Republican politics, U.S. Economy, U.S. Politics | Tags: Crossroads GPS, Ed Gillespie, Elizabeth Warren, Karl Rove, Massachusetts Senate race, Mindy Meyers, Scott Brown, super pac 8 CommentsCrossroads Grassroots Policy Strategies (GPS), an organization that Karl Rove founded with Ed Gillespie, is spending nearly $600,000 on ads targeting Massachusetts Senate Candidate Elizabeth Warren over her support for the Occupy Movement. From the Boston Herald:
“Fourteen million out of work, but instead of focusing on jobs, Elizabeth Warren sides with extreme left protests,” a voiceover says in the ad as text identifies Warren as “professor.”
The 30-second ad released by the conservative group Crossroads Grassroots Policy Strategies comes after League of Conservation Voters launched their own television campaign blasting Republican U.S. Sen. Scott Brown for backing “big oil.”
The ad blasts the conditions surrounding the Occupy movement’s protests.
“At Occupy Wall Street protestors attack police, do drugs and trash public parks. They support radical redistribution of wealth and violence,” the voiceover says. “But Warren boasts, ‘I created much on the intellectual foundation for what they do.’ ”
The ad ends stating, “We need jobs not intellectual theories and radical protests.”
Here is what Elizabeth Warren actually said in an interview with The Daily Beast last month:
TDB: I’m curious: Is there something that is keeping you away from this movement? Is there a reason why you haven’t embraced it?
EW: Look, everybody has to follow the law. That’s the starting point. I’ve been fighting this fight for years and years now. As I see it, this is about two central points: one, this is about the lack of accountability. That Wall Street has not been held accountable for how they broke the economy. The second is a values question, a fundamental fairness around the way that markets have been distorted and families have been hurt. I’m still fighting that fight. I’m just fighting it from this angle. I’m fighting it from … I want to fight it from the floor of the United States Senate. I think that is a place to make this difference.
TDB: Is showing solidarity with them going to get in the way of that?
EW: It’s not a question of solidarity. I just don’t think that’s the right way to say it. I support what they do. I want to say this in a way that doesn’t sound puffy. I created much of the intellectual foundation for what they do. That’s the right thing. There has to be multiple ways for people to get involved and take back our country. The fight that I’m fighting now is one that is directed towards the United State Senate. That’s just how I see it.
I found out about the huge ad buy in an e-mail from Warren’s new campaign manager Mindy Meyers.
A former chief of staff to Sen. [Sheldon] Whitehouse (D-R.I.), Myers managed Whitehouse’s first campaign, as well as successful 2010 campaign of Sen. Richard Blumenthal (D-Conn.). She also worked for President Bill Clinton’s administration and advised Al Gore’s 2000 presidential campaign.
“Mindy’s leadership, political savvy and strong organizing skills, along with her experience winning tough races, makes her the perfect choice to lead this campaign,” Warren said in a statement.
All I have to say is, Go, Elizabeth, Go!!
The Revolution Will Not Be Televised
Posted: November 7, 2011 Filed under: #Occupy and We are the 99 percent!, Bailout Blues, Banksters, Economy, financial institutions, income inequality, The Great Recession, U.S. Economy, unemployment, worker rights | Tags: 2011: days of revolt, jobs, U.S. Economy 5 CommentsNor apparently will it be discussed or reported in anything but negative terms. Take a quick spin over to Memeorandum’s page. The Portland Occupy group is fighting off cooties [head and body lice]. According to the New York Post, Zuccotti Park has devolved into anarchy, a mad den of rapists, vigilantes and wild men demanding free food at McDonalds. Occupy protesters, anti-capitalists all, are beating up elderly women, according to another reasoned report. The Sun Journal leads with the headline: The Lawless Heart of Occupy Wall St. , and then questions the legitimacy of a group that “would interrupt the flow of commerce” in a time of recession [referencing the Oakland port takeover last Wednesday]. And then, there’s the repeating, oh so familiar meme: the protesters are a bunch of Leftist radicals, dedicated to the overthrow of democracy.
Did I mention that they’re all hippies?
What we’re not seeing on the television is this:
War Veterans. These are our men and women who are deified in the press, while shedding blood [frequently their own] in wars of no end and seemingly no point. What are their prospects once home? Not good. Not good at all. According to US News:
And a Department of Labor report shows that unemployment tops 20 percent among 18-to-24-year-old veterans, compared to a national rate of about 9 percent.
Veteran unemployment is projected to worsen after 10,000 servicemen and servicewomen return from Afghanistan and 46,000 come home from Iraq by year’s end — many wounded or suffering from mental trauma.
Nor do we see much of this:
Hummm. Not enough dirty hippies in the group, I guess. This was the “Surround the White House Action,’ to protest the Keystone Tar Sands Pipeline yesterday. Crowd estimate? Around 10,000.
We’ve certainly had full coverage on the violence last Wednesday, in the waning hours of the General Strike in Oakland. The bonfires, the group in black hoodies breaking windows, spray-painting walls, the suggestion that civilization was about to end. But I haven’t seen much coverage of this recent incident [although I see Dak picked this up in the Morning Reads]:
While filming, the cameraman was shot with a rubber bullet. It appears that taking photographs of the Oakland PD is a criminal and/or a violent act, requiring defensive action.
But here’s the thing. Images like this:
Aren’t terribly different from this:
The first is from Occupy Oakland. The second is from the Civil Rights Movement of the 1960s. And if you flip through images of the 1930 Labor protests, the similarities are there as well—people coming together, voicing grievances, demanding resolution. Movements demanding social and economic justice have never been neat and tidy. Nor short. Not in the 60s, not in the 30s. And not now.
So, the song is prophetic. The Revolution will not be televised. No re-runs, brother. It will be live–growing, evolving. For better or worse, morphing into what it will become.
Or not.
Monday Reads
Posted: November 7, 2011 Filed under: #Occupy and We are the 99 percent!, abortion rights, Banksters, Environment, morning reads, religious extremists, Reproductive Health, Violence against women, We are so F'd, Women's Rights | Tags: Financial Crisis, Herman Cain, Keystone Pipe Line, Occupy, Protests, sexual abuse, Sexual assault of Journalists 45 Comments
Good Morning!
It hardly seems possible that the first week of November has passed already. There seems to be a lot of unhappiness and unrest around the world right now. Ordinary people are continuing to express their discontent with their governments who ignore the rights of the many to support the wealth of the few.
Jineth Bedoya Lima is a Colombian journalist who is trying to use her own abuse as a way to end sexual assault of women’s journalists. She also wants to highlight the inaction of Colombia in pursing cases for women that have been brutalized.
As a journalist who was kidnapped, tortured, and violently gang-raped 11 years ago, when she was 26, Bedoya had finally gotten the chance she’d been waiting for, one that most women who’ve endured what she has will never get. After 11 years of her case lying motionless at Colombia’s attorney general’s office, she has the prospect of seeing some justice at the international level.
During a morning visit to Bogota’s maximum-security La Modelo prison in May 2000, as part of a newspaper investigation into alleged arms trafficking involving state officials and members of the right-wing paramilitary group United Self-Defense Forces of Colombia (AUC), she was grabbed, drugged, and driven hours away. Three men repeatedly raped her and left her bound in a garbage dump at the side of a road, where a taxi driver discovered her that evening.
Later Bedoya told the news media how her kidnappers had gripped her hair and told her to “pay attention” as they tortured her. “We are sending a message to the press in Colombia,” they said.
After so many years of waiting on the Colombian justice system to investigate her attack, Bedoya is in D.C. to advance her case at the Inter-American Commission. The Pan-American human rights body will take up a case when all options have been exhausted on the country level or when a country has failed to bring justice in a reasonable amount of time. Bedoya and her lawyers appear to have banked and won on the latter.
All the inaction has taken its toll. When I asked after the hearing whether the look she’s had on her face all morning is anger, Bedoya answered quickly: “No, what you see is an expression of deep pain.”
Support for Republican Herman Cain has waned since the public discovery of settlements for sexual harassment. The polls indicate a definite gender gap. Women are well aware of how prevalent sexual harassment is and they are also aware of Cain’s evolving explanations.
The poll showed the percentage of Republicans who view Cain favorably dropped 9 percentage points, to 57 percent from 66 percent a week ago.
Among all registered voters, Cain’s favorability declined 5 percentage points, to 32 percent from 37 percent.
The survey represents the first evidence that sexual harassment claims dating from Cain’s time as head of the National Restaurant Association have taken a toll on his presidential campaign.
A majority of respondents, 53 percent, believe sexual harassment allegations against Cain are true despite his denials. Republicans were less likely to believe they are true, with 39 percent thinking they are accurate.
“The most striking thing is that Herman Cain is actually seeing a fairly substantial decline in favorability ratings toward him particularly among Republicans,” said Ipsos pollster Chris Jackson.
A major story on sexual predation broke over the weekend. Two Penn State officials have been charged with covering up sexual abuse allegations against a coach.
In a development that strikes very close to Joe Paterno’s storied football program, Pennsylvania State University athletic director Tim Curley and another university official were charged Saturday with perjury related to a child sexual abuse investigation of longtime Nittany Lions assistant coach Jerry Sandusky.
The Pennsylvania Attorney General’s Office said Curley, 57, and Gary Schultz, 62, Penn State’s senior vice president for finance and business, also were charged with failure to report, a summary offense. The perjury count is a third-degree felony punishable by up to seven years in prison and a $15,000 fine.
The protest was organized by the Natural Resources Defence Council, a U.S. environmental group. Spokeswoman Susan Casey-Lefkowitz told CBC News many Americans are concerned with the potential environmental impact of the pipeline.
“Tarsands expansion, climate change and particularly this pipeline is a major concern for many, many Americans,” she said, “and the numbers are growing every day.
“You know, for the president, it’s about making sure he holds true to the promises he made to fight climate change,” she said. “And to the other candidates, it’s about calling them out when they act like climate change is not real, which of course it is.”
Mississippi votes tomorrow to enact or reject a radical definition of human ‘life’. Every one interested in the health of women will be watching the southern state that’s best know for being at the bottom of every list of good things in the country. Colorado has voted on a similar initiative but it was rejected by voters.
Opponents said the definition is too broad and, in addition to outlawing abortion, could have effects on in vitro fertilization and birth control methods.
Stan Flint, a consultant for Mississippians for Healthy Families — a group that opposes the measure — said the group has tried to educate voters that they can be against abortion and vote against the initiative.
“Hopefully, everyone in Mississippi will understand this is a dangerously flawed vehicle,” Flint said. “It’s an extreme government intrusion.”
Here’s a really disturbing video from Occupy Oakland of some one being shot at by a rubber bullet by riot police while filming them. Kind’ve makes you wonder about which countries are police states, doesn’t it?
Barry Ritholz continues to make certain that the causes of the financial crisis can’t be white washed by politicians seeking political donations from Wall Street. He writes on the “big lie” at WAPO.
Why are people trying to rewrite the history of the crisis? Some are simply trying to save face. Interest groups who advocate for deregulation of the finance sector would prefer that deregulation not receive any blame for the crisis.
Some stand to profit from the status quo: Banks present a systemic risk to the economy, and reducing that risk by lowering their leverage and increasing capital requirements also lowers profitability. Others are hired guns, doing the bidding of bosses on Wall Street.
They all suffer cognitive dissonance — the intellectual crisis that occurs when a failed belief system or philosophy is confronted with proof of its implausibility.
Be sure to check the list that follows this quote. He has a really good step by step explanation of how Allan Greenspan’s low interest rates led to banks looking for high profits in all the wrong places. They have no one to blame but themselves. So, why are people like Mayor Bloomberg the blaming poor home owners?
So, that will get us started this morning. What’s on your reading and blogging list?
Surrender Sanity
Posted: November 6, 2011 Filed under: #Occupy and We are the 99 percent! | Tags: average American, missing middle, The Economist, Thomas Edsall 18 Comments
I cannot believe the toxic environment in which our public policy plays out these days. There appears to be a well-funded campaign fomenting the politics of resentment. There also is a campaign of disinformation that continually puts out lies about our economy and our history. Much of it seems to be rooted in the same kind of anti-intellectualism that plays to fundamentalists of all sorts. These are people that believe in myths, ideologies and religion without question and seek to demonize any one that brings facts, education, and knowledge to the table. It is a well-funded campaign and it will bring down our country if we do not stop it.
I see the obfuscation most clearly in economics because that’s my field. Evidently you do not need any particular background in economics in order to write articles on the economy for major newspapers. Last night, BostonBoomer brought up Ezra Klein and a subsidiary column by Matt Yglesias. Both of these guys are young and their degrees are in the esoteric subjects of philosophy and literature. I guess a few years of writing articles makes you an economics pundit in the eyes of the Village. Klein and Yglesias have written things in defense of the Obama administration’s handling of policy based on a tic tock narrative written by Suskind that shows clear misunderstanding of both fiscal and monetary policy. It makes me wonder if either of them have ever seen an IS-LM curve and worked through basic policy implications of macro supply or demand shocks. Ygelsias appears to confuse the Board of Governors with the Open Market committee which shows a lack of knowledge on basic institutions too. A few graduate courses in financial institutions or monetary policy would clear that up pretty quickly, but sadly it will never happen.
Last week, I was beyond horrified by Lori Montgomery’s laundry list of lies on social security. Many of these falsehoods were subsequently repeated by the WAPO ombudsmen yesterday in her defense. Lori basically called social security “cash negative” by completely ignoring the interest payments received by the social security trust fund from investments in US Treasuries. Her defender used pretzel logic to attach the social security program to the general budget. That’s a pretty astounding level of bad information for an article that got printed as special on the front page of a major newspaper. Anyway, it’s disheartening that so much bad information is getting out there about basic economic stuff but it doesn’t stop there. Just think climate change science, genetics, fetal development, and simple evolution. That doesn’t even count the malinformation planted by Fox News and the right wing blogs like Red State, Hot Air, or anything connected to Brietbart. I’m a committed independent, and seeing this nonsense coming from “journalists” on both sides of the US coin just about has me in a total state of despair. There’s obfuscation on all kinds of things these days and I point to these examples because I know they’re wrong and they come from opposite sides of the political spectrum.
I read two op eds this weekend that are playing into my thoughts about this. The first is one in the NYT called “The Politics of Austerity” by Thomas B. Edsall. Edsall is a long time journalist. The other comes from The Economist which never actually gives a byline to a writer. Its op ed is called “America’s missing middle” with the subtitle “The coming presidential election badly needs a shot of centrist pragmatism”. Frankly, American discourse and policy not only needs a shot of pragmatism, they need a dose of reality-based economics and politics. I should mention that I’m not going to use reality in the sense that corporate media uses reality these days. After all, corporate media has brought us ‘reality’ TV which is the most fictional form of ‘entertainment’ around as far as I can see. It appears that the same set of villagers that got played by Kim Kardasian and her dream wedding are being played daily by political ideologues like Brietbart, the Koch Brothers, and the Chicago school of Economics and the Chicago School of Politics. This is what happens when information, money, and power concentrate in a few hands. Average Americans are fed a steady diet of shit that’s meant to get them to act against their own best interests and each other.
So, let me first quote a few things from Edsall who writes that austerity is more of a political ploy than anything based in economics. He writes on how extremists have basically pitted one taxpayer against another in this current toxic political environment. Blowhards with agendas get to say whatever they want, unchecked, as long as it suits the plutocracy. We’re in the process of throwing our children, our elderly, our veterans, our public servants like teachers, public health providers, and public safety officials straight under the bus in order to maintain unrealistic tax structures that benefit the few but have been sold as helping the many who aren’t lazy, shiftless, and criminal.
The new embattled partisan environment allows conservatives to pit taxpayers against tax consumers, those dependent on safety-net programs against those who see such programs as eating away at their personal income and assets.
In a nuanced study, “The Tea Party and the Remaking of Republican Conservatism,” the sociologist and political scientist Theda Skocpol and her colleagues at Harvard found that opposition to government spending was concentrated on resentment of federal government “handouts.” Tea Party activists, they wrote, “define themselves as workers, in opposition to categories of nonworkers they perceive as undeserving of government assistance.”
In a March 15 declaration calling for defunding of most social programs, the New Boston Tea Party was blunt: “The locusts are eating, or should we say devouring, the productive output of the hard working taxpayer.”
The conservative agenda, in a climate of scarcity, racializes policy making, calling for deep cuts in programs for the poor. The beneficiaries of these programs are disproportionately black and Hispanic. In 2009, according to census data, 50.9 percent of black households, 53.3 percent of Hispanic households and 20.5 percent of white households received some form of means-tested government assistance, including food stamps, Medicaid and public housing.
Less obviously, but just as racially charged, is the assault on public employees. “We can no longer live in a society where the public employees are the haves and taxpayers who foot the bills are the have-nots,” declared Scott Walker, the governor of Wisconsin.
For black Americans, government employment is a crucial means of upward mobility. The federal work force is 18.6 percent African-American, compared with 10.9 percent in the private sector. The percentages of African-Americans are highest in just those agencies that are most actively targeted for cuts by Republicans: the Department of Housing and Urban Development, 38.3 percent; the Equal Employment Opportunity Commission, 42.4 percent; and the Education Department, 36.6 percent.
The politics of austerity are inherently favorable to conservatives and inhospitable to liberals. Congressional trench warfare rewards those most willing to risk all. Republicans demonstrated this in last summer’s debt ceiling fight, deploying the threat of a default on Treasury obligations to force spending cuts.
Conservatives are more willing to inflict harm on adversaries and more readily see conflicts in zero-sum terms — the basic framework of the contemporary debate. Once austerity dominates the agenda, the only question is where the ax falls.
The Economist similarly wonders what happened to the US society that achieved so much after World II and before Reagan–who couldn’t even get past a Republican primary these days–when every one was focused on pulling the entire country up. Now, the focus is on maintaining the extreme wealth and power of the few while inciting American against American anger.
On the face of it, neither side has gained from this stand-off. Only 45% of Americans approve of Mr Obama’s performance. The approval rating for Congress dropped to 9% in one recent poll. A plurality of Americans call themselves independents, and on the most divisive economic argument—how to solve the budget mess—two in three of them back a combination of spending cuts and tax rises. But politics is being driven by extremists who reject any such compromise (see article).
The right is mostly to blame. Ronald Reagan, a divorcee who did little for the pro-life lobby and raised taxes when he had to, would never be nominated today. Mr Romney, like all the Republican presidential candidates, recently pledged to reject tax rises, even as part of a deal where spending cuts would be ten times bigger. Mr Cain surged briefly to the front of the pack because of a plan that would cut personal taxes to 9% (see Lexington); Mr Perry lost support for wanting to educate the children of illegal immigrants. Meanwhile, in Congress, the few remaining pragmatic Republican centrists, like Senator Richard Lugar, are being hunted down by tea-party activists.
It’s easy to make fun of the EURO standoff, but really, what is the deal with the group of congress critters on the super committee right now? These are the subset of power brokers who are ignoring poll after poll of US citizens on all sides of the political spectrum to support ridiculous tax policies, continue ten plus years of war spending with no war bonds, and ignore the results of a huge cyclical downturn and lifeless recovery. These guys experienced a 25% increase in wealth recently, what kind of stake do they have in solving the resultant problems of an austerity agenda?
I think all of this comes from spending too much time in Beltway, Washington DC and on Manhattan Island. These are basically two places untouched by falling incomes, falling house prices, and any educational experience outside of law schools and esoteric Ivy League degrees. Then there’s a bunch of know nothing imports that come in with backgrounds in religious extremism, rural isolation, and decades in dysfunctional state governments. Our political and journalist class are basically spoonfed by plutocrats or isolated backwaters. The carving up of the national voting map ever so often doesn’t help. This nearly ensures that we get representatives that specialize in one voter segment and probably one industry. They totally don’t have to pay attention to anything remotely ‘average’ in America.
This is also a clue as to why none of these folks get the “occupy” movements. I don’t know if you’ve ever headed over to Memeorandum, but it looks like the press is trotting out every possible outlier behavior possible in a society and smearing it to every one carrying a placard. They all are so threatened that the average American might realize that other average Americans are focused on them instead of segments of each other they are in total panic mode! I’ve been completely dismayed by a set of villagers that can justify police brutality against veterans and young women. The right wing is trying to scare ordinary Americans away from the picket lines with stories of old women beaten by protestors, small business people unable to do business due to exuberant drumming by lazy people and of stories of encroachment by mentally ill homeless and sexually predatory men.
Again, this is typical of the divide-and-conquer political strategies we see today. Any one with any kind of nuance is drummed out of their perspective clubs. I am by no means a supporter or slightly sympathetic of Rick Perry but I have to wonder if his statements about immigration that didn’t include alligator-filled moats and electrical fences didn’t lead to his eclipse by Herman “Racism isn’t a problem until I can use it” Cain.
Back to The Economist for a moment.
In other countries such a huge gap in the middle would see the creation of a third party to represent the alienated majority. Imagine a presidential candidate next year who spelled out the need for deep future cuts in spending on entitlements and defence, as well as the need to raise some revenue (largely by getting rid of deductions); who explained that the pain would be applied only after the recovery was solidly in place; who avoided class or culture wars; who discussed school reform without fear of the Democrats’ paymasters in the teachers’ unions. Better still, imagine a new centrist block in Congress, which might give that candidate (or for that matter a President Obama or Romney) something to work with in 2013.
And so the fantasy continues, for that is sadly what it is. Even if the money were forthcoming, there are all sorts of institutional barriers, especially to starting new parties, and the record of even very well-heeled third-party presidential candidates is bleak. Instead, the middle will have to be recreated from what is already there.
The immediate, rather slim, chance is of a grand bargain on the budget emerging out of a congressional “supercommittee” set up after the debt-ceiling fiasco. If it were to embrace a centrist option, politics over the next year would be considerably more civilised. But it too appears deadlocked, with the Republicans once again ruling out tax increases of any kind.
The way to deal with populist stirrings in the Republican party was to immediately co-opt any spontaneity in the tea party and surrender it to the Club for Growth, Freedomworks, and Americans for Prosperity.
In a forthcoming book (“The Tea Party and the Remaking of Republican Conservatism”), two Harvard University academics, Theda Skocpol and Vanessa Williamson, say that the emergence of the tea-partiers was “just what the doctor ordered” for a group of billionaire ideologues, such as brothers Charles and David Koch of Koch Industries, who lost no time exploiting the movement’s anger and energy. Dick Armey, the founder of FreedomWorks, and Matt Kibbe, its president, have been candid about their efforts to turn the tea-party movement into “a permanent grassroots army” and mount a “hostile takeover” of the Republican Party.
We have another strategy for the popular Occupy Movement. Since the plutocracy can’t get it shaped into their agenda, it must be demonized. I was rather young during the civil rights movement and the anti-Vietnam movement. I did come in at the end of both and the uptick of the Gay and Women’s rights movements. All of these social justice campaigns were subjected to police brutality, name calling, and attempted co-opts. They stuck so long because of the basic rightness of the causes, the stubbornness of the activists, and the growing support among average Americans. The only thing that gives me hope is that while I have no faith in journalists, politicians, and the power brokers of K and C street, I do have faith in average Americans. If we can remember our shared vision and goals, we can steer us back on course to a shared prosperity. Meanwhile, we need to fight the hate and the ignorance with everything we’ve got. Right now, I think the Occupy movement is the closest thing we’ve got to the right way to do it. Frankly, the fact that it confuses journalists and politicians and causes the right wing to go on propaganda witch hunts is a pretty good sign of how right it is to me.







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