Archive for Economics

The 2014 Midterm Elections

The thing I hear most in relationship to this recent election is that voters “want something to get done.” The main issue seems to be entrenched dysfunction and non-cooperation between the parties. And certainly, it would be nice if both parties worked together to solve problems for the vast majority of the population.

But talking about the ability to “get things done” is ridiculous when not connected to what it is that should get done. The Republicans have obstructed pretty much everything Obama and the Dems put forward, including a lot of appointments, whether they have policy objections or not. The point, as McConnell articulated early on, was to oppose Obama at every turn. The good of the majority of Americans was beside the point. So I guess it’s natural that they ran on an “Obama bad; Washington is broken; we’ll get things done” platform. But what they really want to do—block the minimum wage, cut government benefits except to the wealthy, and return control of healthcare to insurance companies—is very unpopular and unhelpful to most and will continue to widen the dangerous disparity of wealth.

Here is my point: it’s not simply about “getting things done.” It’s about getting the right things done. That being the case, I have become a fan of gridlock, because the Republican-controlled House and Senate are unlikely to “do” anything beneficial.

I Don’t Want to Pay for Them

A couple of days ago I went into the drug store to pick up a prescription. As I walked through the aisle on my way to the pharmacy I overheard a woman, who I could not see, say: “It’s tough nowadays. I’m glad I have a job, but I hate that I have to pay for those who are too lazy to work.”

I interpreted this to mean: “My taxes are too high because of all the lazy people that they have to support.” Then I thought, “what a clear expression of a conservative or Republican point of view.”

To me, it says everything you need to know about what’s at the heart of a conservative belief system: selfishness and greed. Here are some variations on the how the belief system can be stated:
I’ve got mine, you get you own.
If you don’t have a job, you’re lazy.
Why should I help you?
It’s a dog eat dog world.
If you’re poor, it’s your own fault.
Government handouts make people lazy.
Why work when the government will pay you not to work?
Why punish the people who are successful?
I don’t want to pay for them.

The philosophy is based on fear—fear of them—the bad ones, the ones who don’t belong here, the lazy ones, the takers. It’s based on judging them to be less worthy, on making them underserving of compassion or kindness. Conservatism—with its emphasis on judging each person’s individual worthiness, its unwillingness to share, its lack of empathy and its fundamental disregard for the humanity of others—equals greed. Conservatism is a philosophy that justifies greed, sees wealth as virtuous, believes using wealth to gain power is just, and thinks government assistance promotes weakness.

This philosophy is not in the best interest of anybody, even the wealthy, because it inevitably leads to a society with unsustainable levels of wealth disparity—cancerous wealth—that has historically led to social unrest and violence.

Having said all of that, conservatives also have some beliefs that are good for society. Individual self-reliance and personal responsibility, which does not mean refusing assistance and support—benefits not only the individual but also the society as a whole, but only if these virtues are exercised in a positive, contributory way.

The HumansTogether Focus

All of us tend to focus primarily on our own lives and our immediate frame of reference. But most of us are missing the big picture.

We vigorously pursue of our own self-interest in what we believe is a dangerous, competitive world. We take detrimental divisions for granted: race, religion, nationality, class, location and political ideology. This results in clashes rather than commonality.

But despite the absolute uniqueness of each person, we are all human. Being part this remarkable species means that we are all much more alike than different, particularly when it comes to what each of us needs to be secure.

We all know that an infant plucked from its birth environment — say from the slums of Mumbai — and adopted by a family in Beverly Hills, will grow up with the frame of reference of its Beverly Hills family. Perhaps the child will even become a Republican and come to believe that the poor are to blame for their own situation. But wealth won’t save the child from the global effects of climate change or a focused explosion of global hate in the form of a nuclear terrorist attack on LA.

HumansTogether is dedicated to the notion that ideas can change the course of human history. The right of self-determination expressed by the American revolutionaries is an example of a big idea that, over time, created positive global change.

It’s time to focus on big ideas that are expressly global — on beliefs and values that can unite all people and help all humans advance. It’s time to focus on a common new vision of what human advancement should look like. This vision has to be part of our everyday sense of reality. Because unless we develop a common idea of what a positive future for humanity should be and develop a shared sense of responsibility for getting there, every human’s future may be dire.

The first step is coming up with a common goal for humanity and the second step is gaining majority agreement on that goal. Questions need to be raised and answered. What is the purpose of progress? Is there a limit to how wealthy a single individual should be allowed to be? What political system produces the greatest good for the greatest number? Is it time for a truly global set of governing principals?

The HumansTogether focus is on articulating and gaining agreement on a common vision of reality and a set of shared beliefs and values that can help make as many humans as possible free from hunger, fear and physical danger.

Competition by Itself Is Out of Balance

The odds against human beings existing in the universe are astronomically large. An unbelievable number of factors had to remain in balance in order for humans to have evolved. The planet had to be in exactly the right position around the exact right size star. The right chemicals had to come together in the exact right amounts, at the exact right temperature to start the process of life.

The point is that there is a very narrow zone of equilibrium where all of the necessary forces and chemicals and sources of energy are balanced. Balance and equilibrium are key to the development of life and the continuance of ecological systems. Humans have evolved not just by outcompeting other species, but by cooperating with each other. Competition and cooperation need to be balanced.

This analogy also holds true for societies and politics. Currently, the Republicans represent a value system cannot produce the equilibrium required for societal stability and growth. They, along with free-market libertarians, believe that competition is sufficient; that each individual selfishly pursuing his or her own self-interest will produce a balanced and fair society. They seem to believe that wealth is synonymous with merit and that those who do not have a job or enough money to feed themselves, educate their children or pay for healthcare have only themselves to blame.

This sort of belief system is based a model of reality that acknowledges competition but doesn’t acknowledge the need for us all to cooperate. Therefore cutting Social Security, Medicare, Medicaid, and programs that aid the poor is just because the cost of these losers is being borne by the meritorious winners. Why should they share? They work hard, they deserve. The poor do not.

That is why government should be small. Those that drive the economy don’t need the government. Just let these hard workers compete and let the winners win. The winners will employ others to help them. This is how society works—how the winners produce value for everyone. We need to compete to keep the wealthy corporations happy—giving them incentives to hire people in this state or that state. This is the expressed belief system of conservatives and it’s out of balance. Competition is all that is required.

But it is clear that competition by itself does not produce good results for society. It has led to very few very big winners and huge multitudes of losers. That is what the facts on the ground prove.

In this election we have one candidate who believes that the winners need more incentives to win and that the benefits the non-winners currently receive are a drag on the economy. We can’t afford cooperation and compassion. Cutting benefits for the non-winners will balance the budget and a balanced budget will free up capital up so winners will be able to compete even more successfully. This has not and will not work because it is profoundly out of balance. It will only create more wealth disparity. Romney must be defeated.

I suggest this simple slogan for Obama. Romney is only for the rich. I’m for everybody.

Water, Energy, Money, Blood

Bless me my conscience; it has been seven months since my last post. In that time, we have witnessed the Republican presidential primary process deliver Mitt Romney—as clear an example of the top 1% as you can get.

We need to think about his success and the success of the 1% in general in a different way than Romney would like, or can even get his mind around. In the conservative worldview, which most of us accept without question, Romney is a winner. He played the game of wealth creation well, and is exactly what we all want to be like: rich (not stiff and awkward). Who doesn’t want to be rich?

In this prevailing worldview the accumulation of vast wealth is what all individuals seek. Along the way jobs will be created, investments will be made, and society will benefit. And this is true to a degree. But jobs are only a once-in-while by-product of wealth accumulation; many times the loss of jobs creates wealth for owners.

The unbounded creation of wealth for the top 1% is also sequestering resources that the rest of us need to be healthy. Imagine if one rich farmer had hundreds or thousands of times more water than the other farmers and there was a drought. This farmer sold the water, but if you couldn’t pay, oh well. I hope you don’t starve.

One person controlling all the precious water is a big problem. What would happen? Would the other farmers attack the rich farmer? Would they be justified in doing so? Would the government back the majority of desperate people and send troops to free the water, or be bought off by the rich farmer and send troops to keep the thirsty, starving mob at bay?

In this metaphor, water equals money. But both actually equal energy. No water, no energy for the growth of a crop. No money, no energy for the growth of the economy. By playing the game of individual wealth creation, which we all do, the winner’s jackpot is now detrimental to everyone else. The irrigation system of the economy is dry, not because there isn’t enough money, but because the flow is being restricted and tightly controlled. Money is flowing not to dehydrated everyday people but into the endless reservoirs of the 1%.

Never mind that people are dying or becoming homeless because they can’t pay their medical bills. In the system we’ve bought into Romney wins and we all lose. It’s perfectly fair that he get as much as he can. Concern for the losers is not part of the equation. But since money is the energy needed for growth, look for higher costs in blood when that energy is not forthcoming.

The 99

I am very hopeful that the folks occupying Wall Street and the Build the American Dream movement are getting some traction. George Carlin had it right. It would be great if he were still around during these crazy political times.  In the clip, he gives us the reason why the other 99% are starting to make noise: it’s the behavior of “the owners” and those who work to keep them in power.

http://www.youtube.com/watch?v=acLW1vFO-2Q&feature=player_embedded

But the owners are only doing what we define as success in this society. As long as success is about amassing a personal fortune and controlling everything to protect and increase that fortune and not about the explicit contribution that was made to the greater good–reducing poverty, subjugation, war and the destruction of the environment–we will continue to worship and want to be like the rich.

Now the right wing in this country will say that by following your dream and becoming wealthy your are helping everyone. You are bringing value to the world and creating jobs. And this is not untrue.  But it is only one side of the coin. Like electrical regulators that control the flow of electricity so that power stays within a narrow bandwidth that is usable by all, the human energy and power that flows to and is stored by the wealthy needs to be regulated. Because when too much of the economic energy that drives society is tied up in too few hands a different sort of energy builds.

The stored energy of anger and frustration is finally being targeted at the real source of our increasing economic hardship, the disproportionate amount of economic energy currently being sequestered for the exclusive use of the top 1% .

The current flow of energy is unstable. Hopefully the new energy being generated by the other 99 will result in a more equitable distribution of power.

Thanks to my Facebook friends for finding the clip.

Happy Birthday Mr. President

As you celebrate and take stock, please keep the following in mind. In these difficult times, we need a clear vision of the country we want to be. We want to be a big, forward moving country like our competitors. This requires a government that is active in “winning the future.” The opposition’s vision is like Scrooge, delighting in the abstract notion of balanced accounts, regardless of the suffering all around.

Your vision must be larger and more optimistic and progressive—even if it’s not politically possible. Promote your positive vision and let them be negative. You need to be the preacher and visionary in chief, not just the conciliator in chief.

George Orwell Was Off by 27 Years

I am truly frightened by the debate on the debt ceiling. Today, every single Republican I saw on television said “Where is the President’s plan? He has no plan.” That was obviously a message directive from the Republican Ministry of Truth. (In Orwell’s 1984, the Ministry of Truth was anything but.) The goal of the “talking point” is to lay blame for the economic catastrophe they have already caused and the one they are flirting with now at Obama’s feet. The fact that Obama didn’t issue a specific document entitled The President’s Plan to Cut the Deficit doesn’t mean he wasn’t working diligently to promote a plan. What do they call the weeks of negotiations headed by Joe Biden to cut a deal that the Republicans walked away from?

Our dismal news media, which is unable to separate rationality from idiocy, would have us believe that uncompromising tea party politicians have coherent economic principles. They do not. Since they speak only about “unnecessary spending” and protecting so-called job creators, it is obvious to me that they are completely willing to precipitate a new economic catastrophe in order to blame Obama and gain the presidency in 2012.

That’s why I am afraid and why I am considering taking my savings out of the bank and keeping it in cash in case there is a run on the banks. Bad things are possible when those who control the fate of others are completely detached from reality. Whether out of cunning or an irrational ideology, many Republicans see it as in their interest to oppose everything Obama does, no matter how reasonable.

In the media, we routinely have to put up with the conventional wisdom that voters will blame Obama if the jobs’ picture doesn’t improve. Republicans crashed the economy due to run-away, unregulated financial speculation and yet it’s Obama’s fault there are no jobs. Taxes are at the lowest level in years, were lowered under Bush, and still the economy tanked and fails to recover. But the Republican answer is still lower taxes and the media treats this as a rational idea.

There was a Republican on with Chuck Todd (MSNBC) this morning. I didn’t catch his name but he said something like this: “When businesses are in trouble they lay people off and close divisions. After the cuts investors see that the company took the right action and is ready to grow again. This is what we need to do in our economy.” This statement shows that Republicans can’t tell the difference between a business, whose purpose is profits, and the government. They believe some citizens must suffer so the books can be balanced and the economy can start to grow again. But cutting jobs in the overall economy does not produce a more profitable economy in the same way that cutting jobs increases corporate profits. It produces greater unemployment and a longer, deeper economic downturn.

For more on the Republican use of Orwellian opposite-speak, see: http://www.ourfuture.org/blog-entry/2011072815/ignorance-index-iv-job-killing-de-regulation.

The Government is Not a Business

Have we forgotten whose policies caused the plunge?

In the graphic above, lifted from ABC’s “This Week” with Christiane Amanpour, the yellow line shows how much deeper the current recession is than all previous recessions, at least since 1980. So because the economy is not healing fast enough, we should turn its management back to the people whose policies caused the crash in the first place? Look doctor, my loved one isn’t getting better as fast as I would like. So I think I’m going to go back to the doctor who administered the poison. You know, because whatever you’re trying to do isn’t working. Maybe that other doctor will be good this time.

This reasoning seems to be treated as perfectly logical in the lame stream media. That’s right, I’m using Sarah Palin’s phrase, but for the complete opposite reason. The lame stream media seems to accept the Republican spin that reducing the deficit is the most important step we can take to create jobs. Why? It’s clearly bullshit. Yes we need to cut the deficit, but to even pretend that this will somehow revive the economy is ludicrous. Cutting is cutting. You can’t cut programs without cutting jobs.

What does a CEO do when he needs to get the company back on solid footing? He cuts jobs. He lays people off. He reduces spending to improve the bottom line and get profits back up. Fine. This restoration of the company’s fiscal health doesn’t create jobs, it costs jobs.

The policies the Republicans are trying to put through are not about jobs. They are about deficit reduction, which is essentially restoring the country to a fiscal balance. They seem to view government as a big corporation that is not in good fiscal health and themselves as CEOs who will cut spending and restore the company to the black. They clearly care more about fiscal responsibility, i.e. profits, than they do about the well-being people. This is about the ideology, or rather mythology, of personal freedom. When people are free from government regulations and programs that take money from the worthy workers and wealthy job-creators and give it to the undeserving lazy poor then everything will be in balance and a growing economy will be magically restored.

Not only is this ideology totally wrong, with no possible way of creating growth, it will exacerbate the destabilizing disparity of more money going to fewer and fewer super rich overlords. This is fascism and it’s where Republican policies have been and will continue taking us.

At this moment in time, as the Republicans petulantly refuse to consider any discussion of closing loopholes on their large corporate puppet masters, it seems as if many of these zealots truly believe in the righteousness of their cause and are willing to crash the global economy in the name of fiscal balance. This is shear madness. And yet the “free press” pretends that it’s a legitimate approach. How can one not be pessimistic when clear stupidity passes for a valid economic option and when people are so deluded and mislead that they will seriously consider returning the patient to the care of the poisoner?

Fear

Now that the new Republican Congress is off and running, I’m becoming more fearful about the planet’s future prospects. As arguably the world’s most dominant economic power, the policies our Congress enacts affect the whole world. The faulty, incoherent, non-rational belief system of the new Republican majority cannot possibly lead to positive results. Only the wealthy will benefit from their policies. The rest of the world’s population will suffer.

So how do progressives—who believe in a more balanced, rational, caring application of our collective knowledge to reduce human suffering—counter this onslaught of self-righteous lunacy? I wish I had an easy answer. But I know the solution involves the reframing of our politics to a more empathetic, HumansTogether attitude that focuses on what we have in common and not on how we disagree. That is the mission of this site.

Fortunately, I believe that there is an increasing awareness that we need this refocusing. Many of the people in my social circle understand that a system based on creating wealth for the few and hardship for the masses is not sustainable. I believe there is a yearning a new kind of idealism and a revaluing of what is important in life away from the purely materialistic.

I also believe that once people start paying attention to the way this Congress behaves, many will recognize their transparent hypocrisy, irrationality and incompetence. But politics is now being driven by entrenched emotions, enflamed by a mass media that makes more money when there is conflict.

The ideal antidote to would be a new sixties movement—a massive rejection of the current value which favors wealth over well-being. This would be a movement based on consciousness raisin; a movement based on peace, love and understanding. What’s so funny about that?