Thursday, March 28, 2013

Gay Marriage, Drones & Inequality

Social progress seems slow, but in societal terms it's probably moving about as fast as it can: acceptance of gays, even if the Supreme Court can't keep up with the changes in society, is lightning fast.

On the other hand, environmental progress is moving in reverse along with economic equality. War and instability have become more destructive, even if there is no "world war."

Post-Citizens United: corporatist conservatives must punch themselves with glee: successes small: sneaking through "the Monsanto protection act" in the Food bill, and big: persuading the chattering classes inside the Beltway that the deficit/debt is an urgent problem that only can be solved by cutting what they derisively call "entitlements," not subsidies to the burgeoning wealthy.

Our media is so skewed towards the agenda of the wealthy and corporations, that it doesn't seem absurd that we're slashing government spending when unemployment is far too high. Our media is more controlled by wealth and corporate interests than it was in Venezuela before Chavez. He opposed it with state-owned media, and selective de-licensing.

US media excoriated Chavez as a dictator, while he won landslides in at least five elections, elections certified by Carter as freer than the US.

Venezuela may have more democracy than we do, since Republicans work assiduously to deny the right to vote to likely opponents, and a Supreme Court Justice derides Voting Rights Act Section 5 as establishing voting rights as a "racial entitlement."

The US claims it's exceptional; it isn't, except in things we shouldn't crow about, like the highest per capita rate of incarceration, the most expensive and least effective health care system, a falling working wage, soaring inequality, and endemic violence fueled by our wide open "gun culture."

We don't, any longer, score high on educational attainment: almost every other OECD nation has higher college graduation rates: the US used to lead.

Our military is exceptional: the US has the world's most effective killing machine--long before we started using drones. But it still loses wars: Vietnam, Iraq (really), and now Afghanistan.

The size of our military is also exceptional, but that demonstrates another American failing: like North Korea, we spend more money on war-making than on any other "discretionary" government function--we substitute brute strength for sense. We value guns over children, even our own children (100+ days since Newtown and no new Federal gun control law). But the Bible is "brought to you by Walmart," an American company. Exceptional!

The American Empire hasn't lasted long; it's failing progressively and making enemies everywhere. Soon the muscle-bound US will be only the second wealthiest nation.

Targeting immigrants and homegrown terrorists with drones, disenfranchising minorities (those we haven't jailed) and the poor, the US is also becoming almost as authoritarian as China, our successful competitor.

Wednesday, March 20, 2013

Next Question:

Why are the Democrats so timid, especially in the face of unapologetic Republican extremism? And this goes for Obama, too. He keeps talking about the "grand bargain" that he wants to negotiate, by compromising with the same Republicans who want to eviscerate any program or service that aids the poor or "middle class," want to repeal Obamacare and are determined to make Obama's presidency a failure, even if he was reelected.

Nader pointed out the obvious, when he identified the "defeatist" Democrats, who took no advantage in 2012 of the incredibly unpopular policies and votes of the Republican Congress, like cutting programs for the poor, while cutting taxes on the rich.

As I pointed out last week, the deficit/debt/austerity politics that roils inside the Beltway is also highly unpopular, except with one demographic: the wealthy. But Democrats, who call themselves The People's Party, are too scared to take a popular stand because they are almost as dependent on wealthy donors as Republicans.

In other words, we live in an extremely corrupt political system: politicians may not get direct payoffs, but they do get wealthy from currying rich people's favor. They don’t organize politics like old Boss Tweed, or Mayor Daley Senior, but they are even more corrupt: their whole agenda, such as it is, justifies and rewards the extremely wealthy--and this is not just the extremist GOP, but the "mainstream" GOP, and some Democrats, as well. Democracy does not come trippingly off the tongue.

However, the Congressional Progressive Caucus offers a no-nonsense alternative to GOP Paul Ryan's vague, reactionary budget and cancels the sequester. Progressives claim their budget, entitled Going to Work, would reduce the deficit in three years by producing 7 million jobs and increasing GDP by 5.7%.

Supporters claim that investing in jobs, in infrastructure, which civil engineers recently pinpointed for much needed repair, in teachers and cops--in people--would reduce the deficit. The budget also raises revenue by closing tax loopholes on higher incomes and raising taxes on millionaires and billionaires, including taxing investment income the same as wages; it's now at preferential low rates. Proponents claim the expansionary budget would cut the deficit by $4.4 trillion. Some of the loopholes to be cut, aside from investment income: $112 billion fossil fuels industry subsidy; $70 billion: food and entertainment corporate deductions; $13 billion: yachts and vacation homes deductions and $25 billion: eliminating a stock options loophole.

The Democratic Senate's budget is timorous by comparison, although at least it protects Medicare and Social Security from cuts. But why can't mainstream Democrats advocate for an expansionary budget to grow revenue? The Fed's Bernanke says we shouldn't cut spending until growth stabilizes; even Republicans admit the "fiscal crisis" is only a future problem.

Because our Roman Senators, the extremely wealthy, control the political debate and promote their interests: lower taxes for them; no protection from their rapacity and reduced/no services for everyone else. They want a society like Fifth Century Rome.

Wednesday, March 13, 2013

Democracy?

Does the United States have a functioning democracy? All the platitudes about democracy, thundered from every quarter, would make you believe so. But if you look even at the surface of our political "debate," and of the policies that issue from it, and then look at public opinion, as expressed in polls, the US doesn't look democratic.

It looks about as democratic as Marie Antoinette, or Diocletian (see http://www.roman-empire-america-now.com/history-of-the-roman-empire.html).

What are the main concerns of the public at large? Jobs, higher wages, more equity, health care, assurance that the older generation is taken care of, better schools, safety. The debt and deficits are hardly even a concern.

The debate in Washington, and in state capitols, is how to cut the debt and the deficits, and the way to do so is to cut the very services the public wants more of. The alternative offered: raise taxes on the wealthy, is still to cut deficits.

Paul Krugman, the Nobel economist, continually points out that the deficits are not a problem to be solved now, when the economy is only barely emerging from The Great Recession. And he says it's not the terrible problem those he calls "Very Serious People" constantly rail about. Government expenditures and deficits, relative to the huge size of the economy, are actually going down, and were never too large. He also points out that the deficits run by the Bush-Cheney administration were mostly wasted, while the current deficits are largely due to the extremely slow recovery and the inadequate attempts by the Obama administration to stimulate the economy: it would have been better if such deficits had been larger.

Yet, the VSP continue to insist: we must cut government expenditures now, because we have to "solve the debt crisis." And our media, and Congress, and even the President go along. Obama talks about reaching a "grand bargain," which apparently would cut benefits to Medicare, Social Security, Medicare, and a whole raft of other social programs like Head Start, in return for even a few concessions on cutting tax loopholes for the wealthy.

Popular opinion supports higher taxes on the wealthy. People know, without looking at statistical tables, that the wealthy have radically increased their share of the wealth, are grabbing even more and are taxed less, in relative terms, than the poor, or the middle class.

But higher taxes for the wealthy are a non-starter, while cuts to Medicare and even to Social Security, which doesn't contribute to deficits, are "on the table."

What's going on here?

Polls have shown that the very wealthy want cuts to social services (they don't need them); say large deficits are our worst problem and must be cut, by cutting expenditures for things they don't need--like Medicare and Social Security--but not by raising taxes on them; they need their yachts.

That's who the VSP represent: the equivalent of Rome's Selfish Class, the Roman Senators: that's plutocracy, not democracy.

Tuesday, March 12, 2013

Not Just Conservative Libertarians

Rand Paul's filibuster may have uncovered an issue that resonates with more than his core conservative base. It's the overweening reach of the executive branch, especially the President's use of drones, and his claim that he has the power to kill citizens if he determines--without proof--they are "enemy combatants" involved in terrorism against the US. This is a real danger: any President unchecked could become like a King or dictator, with no limits to his power.

Paul's protest is consistent with the conservative-libertarian view that government must be limited. Progressives, like Democratic Senator, Ron Wyden, who supported Paul's filibuster, could make common cause on the issue of war powers, but not on the government's role in the domestic economy.

Conservatives and progressives might collaborate on cutting back the overreach of imperial powers, and ultimately, on reducing, or withdrawing support from the United States as empire.

Back in the Interwar Period, this impulse was first labeled isolationism; then it was short-sighted. The rising powers of Togo's Japan, and Hitler's Germany had to be stopped: they were determined to dominate everyone. Their hegemony could have created a terrifying world. The dominance of the US after WWII was relatively benign in comparison.

However, US super-power status has been fraying for years, and although the US is still by far the most powerful militarily, and largest economically, trends are against its maintaining preeminence for long. First of all, as Vietnam and then Iraq and Afghanistan demonstrated, military might is limited: it cannot impose American control over an unruly world, despite the US spending more on its military than all other major powers combined. Often, our "adversaries" have been able, like a judo master, to use our strength against us.

In Vietnam, the Viet Cong gained a goodly proportion of its arms from a vibrant black market, because of the flood of weaponry sent by the US. In Afghanistan, we created our own enemies: the Taliban and al Qaeda, when intervening against the Soviet takeover. In Iraq, we destroyed a relatively stable dictatorship, a sometime ally (Saddam worked with the CIA until invading Kuwait). Instead, we created an unstable "democracy" naturally allied with Iran.

In addition to the limits to military power, there is America's relative economic decline, caused by the dramatic rise of the BRIC nations, especially China, and by our trade debt. The US will not have the largest economy for long, and will not be able to afford the luxury of its huge military establishment. This is especially true as the US Dollar's reserve status weakens and we have to pay our debts with dollars earned!

It's likely we're seeing the beginning of the decline of the American Empire. I hope we can manage it more benignly than did the Romans, Spanish, or Soviets. So, Rand Paul has a point.

Maybe we can become like Monty Python's post-imperial Britain. We could have more fun!

Saturday, March 2, 2013

Why "Conservatives" Insist on Cuts

Cutting government programs across the board, heedless of their impact, appears to be intentional on the part of Tea Party Republicans in Congress. At best, some of them may acknowledge that more unemployment isn't good, but all claim that the need to cut government is of much greater importance.

What macroeconomists like Paul Krugman, and liberal policy wonks like Robert Reich ignore is that radical conservatives have a radical agenda, which is why they don't care about precipitating more recession. In their simple worldview, any government that does more than maintain order, protect property and defend our borders is doing too much. In some of their rhetoric, doing more seems to be equivalent to doing the Devil's work.

The mass of people mobilized as Tea Partiers are largely motivated by an unformulated libertarian ideology pre-figured by Ayn Rand, but are also bolstered by American mythology of the frontier; Don't Tread On Me flags have been prominent in Tea Party demos, for example, along with the faux Revolutionary War costumes. Radical conservatives tend to be white, non-urban and older, they appear to subscribe to the idea that everyone is out for themselves, and everyone should be left to sink or swim.

Given such a worldview, cutting Head Start, Mental Health, etc. and furloughing thousands of Federal and State workers is seen as a first victory, not as an economic disaster. That's why compromise with these folks is virtually impossible as Democrats and Obama are discovering. Further, Boehner realizes that he'll only keep his Speakership if he goes along with them, not with Democrats or Obama, or common sense.

What has made the Tea Party, or radical conservative libertarianism, a viable political movement is the money behind it. Why do billionaires like the Koch brothers invest hundreds of millions in the conservative movement? It's to their interest to dismantle government, not only to cut their own tax bills, or their regulatory headaches. It's to their advantage to disarm all the protections that citizens gained through the Progressive movement, the New Deal and the Great Society.

Once people are no longer protected by government, by entities like the National Labor Relations Board (rendered nearly toothless, already), employees will be helpless when facing their employers; small landowners will be helpless confronting corporations and minorities and immigrants will be unable to claim any rights.

Rank and file radical conservatives don't realize that "Freedom" doesn't mean their freedom; it means freedom for corporations and "job creators," aka the wealthy, and the oppression and exploitation of everyone else.

That's what happened at the end of the Roman Empire, when Senators took all the wealth and power, and reduced everyone else to serfdom or slavery.

It's already happening here: Americans have lost most rights they'd won as employees: they work longer hours, are paid less and can be fired almost at will. And all of us are losing our civil rights.

Friday, March 1, 2013

Gold and the Sequester

Paul Krugman, liberal Nobel Economist, points to a huge increase in the corporate share of the economy since President Reagan: from 4-5% to 10% currently, except in the troughs of downturns. In addition, corporations aren't spending this doubled share: they're saving it.

The Roman Senatorial class in the fifth century controlled an even larger share of their economy: their capital was land, slaves, serfs, and gold. They hoarded all of them, but especially gold.

It's argued by conservative economists (non-Keynesians) that corporate hoarding (or saving), doesn’t matter, because it isn't like hoarding gold--the Roman Empire's main currency. Corporations have bank accounts: banks can turn around and lend out corporate deposits; that's their business.

Bank speculation, however, instead of lending, has become the great profit driver for big banks: they don't lend out enough during a recession like ours, because they can make so much more through playing the 'Russian Roulette' Finance game, creating derivatives, and derivatives of derivatives, betting for and against their success (hedging) and selling them to other speculators.

In the case of the Roman Senators, the effect of their hoarding gold and land was to so severely reduce the availability of money in the economy that there was long-term deflation that impoverished almost everyone.

The effect of withdrawing money from Roman society was to reduce the ability of most people to buy anything, and to increase their dependency on those with wealth. That's what precipitated the Dark Ages, AKA feudalism. The other side of this: those hoarding might have been able to buy anything their jaded hearts desired, but since there were few of them, the Empire became progressively poorer. And even marketable goods became less marketable.

The same is true of the effect of corporations hoarding: fewer goods and services are produced or consumed: hoarding intensifies lack of demand that triggers a depression or recession.

Hoarding complements austerity, the cause radical Republicans now proclaim in order to reduce dependency on government. But if people were dependent on government programs to survive or prosper, then, without them, they would be even more vulnerable to exploitation by people and corporations with money. This gets us back to the Sequester, which takes place today, cutting $85 billion in programs "across-the-board" from Defense, the big untouchable, to Head Start and Air Traffic controllers.

The radicals don't seem to care if unemployment worsens, because of the cuts they demand. If you don't have a job, you're a loser; why should we take care of you?

But look on the bright side: the cuts slash bloated Defense the most, so maybe the Sequester isn't all bad. It might force newly appointed Defense Secretary Hagel to really cut the Defense budget. He's the one who called Defense 'bloated' after all.

On the other hand, Tea-Partiers love the domestic cuts: they only hurt "takers," they're told: so far, they hear no other voices.

So, expect a down-turn by Spring.