Paul Krugman: "It's slightly sickening to realize that the big winners in the midterm elections are likely to be the very people who first got us into this mess, then did everything in their power to block action to get us out."
Portrait, New York Times columnist Paul Krugman, 06/15/09. (photo: Fred R. Conrad/NYT)
1938 in 2010
06 September 10
Here's the situation: The US economy has been crippled by a financial crisis. The president's policies have limited the damage, but they were too cautious, and unemployment remains disastrously high. More action is clearly needed. Yet the public has soured on government activism, and seems poised to deal Democrats a severe defeat in the midterm elections.
The president in question is Franklin Delano Roosevelt; the year is 1938. Within a few years, of course, the Great Depression was over. But it's both instructive and discouraging to look at the state of America circa 1938 - instructive because the nature of the recovery that followed refutes the arguments dominating today's public debate, discouraging because it's hard to see anything like the miracle of the 1940s happening again.
Now, we weren't supposed to find ourselves replaying the late 1930s. President Obama's economists promised not to repeat the mistakes of 1937, when F.D.R. pulled back fiscal stimulus too soon. But by making his program too small and too short-lived, Mr. Obama did just that: the stimulus raised growth while it lasted, but it made only a small dent in unemployment - and now it's fading out.
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Decrying that buggy whip factories are gone seems to be a pointless exercise.
Trade sanctions are also a product of vestigial economic thinking - this would also punish American workers by extension. To remedy this I recommend you read Robert Reich's seminal work: The Work of Nations.
So yes, I want those jobs back. I want our economy - that is, the nation's - to be more important than the corporations' profits (which have been doing quite well in this economy, as you know).
A restructuring of our corporate laws that legitimize corporations and govern how they do business is called for now.
It turns out, some Marxists who have beeing arguing for years that what we have to deal with is State-Monopoly capitalism are right. Yet (instead of phasing this CORPORATE welfare (and PUBLIC welfare as well), the remedy offered by experts like Krugman is mainly focused on artificially stimulating the purchasing power of the consumers ("spread the wealth") and other measures that increase the power of the state. Why do not we go into the opposite direction and learn a bit from "silent Cal" (Coolidge) who more or less successfully handled the 1919-1920 depression (cut DRASTICALLY taxes and spendings). Of course, if you believe that FDR took us out of the Great Depression rather than WWII, no other alternative will appeal attractive except the New Deal-type measures. After all, Obama was billed by some as our second FDR.
The moral equivalent of WWII would be a vast program of green job creation where infrastructure is built that continues to produce a payoff long into the future. Rebuilding our power grid, putting in wind farms and solar powered arrays, research on capturing wave and tidal power, carbon sequestration, and numerous other areas with potential long term benefits are just what the economy needs. It's called investment in the future.
So called "free trade" is the culprit and rejecting slave-made goods is the solution to restoring our economy. It really is that simple.
In addition to taxing overseas products and services two other steps could be taken: the government should not buy products and services from overseas (e.g. passports are now produced overseas) and there could be laws making information that should be secure available only to domestic companies.
What are you talking about? What else do you suggest to tax? The capital goes where profits are. Instead of stretching your tax hand overseas, you better cut taxes (and spendings too) here in the States. Outsourcing is perfectly fine and no need to impose on it any US taxes. May be it will teach Americans a lesson and force some of them eventually to take works in the fields now worked by illigal Mexicans. When you are pumpered and cushened by your nanny state and get used live in debt, it is hard to get back to reality. I was stunned and shocked (when I came to the States in 1990) with some American friends who openly wondered why I always paid my Master Card bill in full rather than a minumum payment: "Come on, man, you are a fool, everybody lives on credit." Sometimes, it is useful to stand a couple of days in a soup kitchen (both for GM and common folks). Might be a good shock therapy.
you missed my point. The point is that, while you still can see some soup kicthens here in US, you will never see them in W. Europe and Canada, where "mama state" takes care of such things. Soon they might be gone in US if the US public opinion seriously decides to go Greek/French.
The only thing I totally agree with you is that the corporate bastardas from GM and Goldman Sachs SHOULD be allowed to fail) must be standing in the same lines in the same soup kitchens.
You need Americans to quite buying foreign by choice. That is the real solution to job security.
American jobs will be gone for better or worse. This is the answer to your question. You either learn another marketable skill or sit on welfare for a couple of years, looking for another job. Stop this romantic nonsence about calling people to stop buying foreign-made goods. It is certainly not a real solution. Even many progressives on this forum will agree with me on this point. You remind me an early 19th century Luddite in England who wrecked factory equipment because industrial life destroyed their home workshops and idillic pastoral life.
AHA! Mein freund! I guess we do have much in common!
The ultra rich, or those with investable assets of at least $30 million, increased their wealth by 21.5 percent last year, and investing in residential real estate has regained appeal among the wealthy, according to the "2010 World Wealth Report" by Capgemini and Merrill Lynch Wealth Management.
http://www.us.capgemini.com/worldwealthreport2010/
It's time to stop complaining, get rich, and join the Tea Party!
What is the path to becoming rich?
Inherit? Steal from the poor?
Become a Banker and legally rob people?
Any other suggestions?
Most Tea Party members (beside Ms Palin, Ex-Repuke politicians, and Fox News Liars) seem to be on the old and poorish side!
The more things change, the more they stay the same. The German people were also coming out of the Depression, and they found their leader, didn't they?
I'm saving my crayons, so someone else can draw the parallels.
Well pluck me magic twanger Froggy! Just what parallel might your crayons be drawing?
Whatever one's political stripe, it seems that Time has a certain enthusiasm for men who are dedicated to a cause.
And, like him or not (at least in comparison to the fascist-United Fruit-MAFIA axis that ran Cuba beforehand), at least Fidel has displayed "staying power" through parts of eleven presidencies.
Oh yes, I think GW was brilliant! He brilliantly fooled the religious right that he believed in Jesus. He brilliantly fooled the tax-conscious that he was going to cut their taxes. He brilliantly fooled the world that Iraq was the enemy of peace. He did all this fooling because he knew the most important fact about being president: the campaign doesn't end after you're elected, and the people don't care what you do, compared with what you say you do.
Obama has to end his messiah complex and get out and campaign. Otherwise, he will deserve to be called a coward just like Dukakis.
BTW: Giving GW any credit for anything regarding Iraq was stupid like nothing else. Only Mondale's bunting was worse!
What is meant to be is meant to be. Do not blame Obama, although I do not like his ecoonomic policies. I feel sorry for the man who became a hostage of the economic crisis. After all, as any good Marxist economics textbook will tell you, capitalism develops by cycles: from crisis to crisis. If a politician happens to be in charge of a country during such a nasty time, he/she is doomed anyway. He/she is always bad in the eyes of masses who want an instant solutions
That Pearl Harbor was a false-flag operation is no mere "myth." There is only one journalist-scholar who went through 200,000 documents and interviews for almost twenty years, investigating the causes of the Pearl Harbor attack. His copiously footnoted book is Day of Deceit: The Truth About FDR and Pearl Harbor, and it makes it irrefutably clear that FDR followed a plan of specific provocations, cooked up by Arthur McCollum, to coerce Japan into attacking - and that he and a small group of advisors, receiving updates from Japan's military and diplomatic codes, which had been cracked, had ample warning of the attack, where and when, and allowed it to happen by keeping the key commanders out of the loop.
Novel!! Cheeers!! These are the books from which we the people draw our info about history and politics.
Another version has it that FDR wanted to get the US involved because of his genuine opposition to the Axis powers.
He knew, however, that "isolationism" was rampant in the USA, that a sizable proportion of the social, political and economic elite (Charles Lindburg, Joe Kennedy and Henry Ford, for example) were Nazi sympathizers and that jumping into a second conflagration in Europe would not sit well with the public.
So, the attack on Pearl Harbor (the other option being Clark Field in the Philippines) was more-or-less "invited," as an excuse to declare war.
The same gambit was tried in 1965 (the phony "Gulf of Tonkin" incident and 2003 (the phony WMD). The main difference was that Pearl Harbor was real.
In China they have been shooting corrupt business people. Here they bribe congress and the senate and they give them multimillion dollar bonuses. Wake up and think when you vote. Don't reelect the same crooks just because they bought the most expensive ads. There are a few reasonably honest politicians out there.
After watching what the male establishment did to Hillary, I had to think long and hard about voting for Obama. Like many others I didn't think he was experienced or seasoned enough to take on the right.
If all the liberals would finally wake up and realize that something called propaganda is effective and must be addressed, even used, if one wants to fight the conservatives, there may actually be more liberals in power.
Obama used propaganda - hope, yes we can, etc - to reach the average 'public' man and woman. GW and Palin know how to do that. Beck is a page right out of Kazan's "Face in the Crowd" playbook.
We must, must, must sing our mythology for the future.
Oh but we don't want to get our hands dirty. We want to vote for some good third party candidate who has no chance to do anything, except make us feel good.
Wake up America! To paraphrase one of the best Bush (senior) quotes, if you don't like the moral murkiness, get out of politics!
Voting for anybody else is voting for the Republicans. That's how we ended up with Bush! Not voting at all is STILL a vote for the Republicans.
If you’re disappointed now, how disappointed will you be when the Republicans win.
VOTE!!! Tell your friends that voted for Obama to VOTE. WE MUST VOTE!!!
WE NEED MORE SEATS NOT LESS!!!
We are running out of time, stop criticizing. Get on board.
The Dems make mistakes, the Republicans make disaster!
Use your brain to get Obama voters to vote for all their Dems. Face the reality, we have to make what we have work otherwise it’s back to the Republicans making more disaster for the middle class and the country.
Write to him and tell him exactly that. Every time I write to him, he seems to get a little more forceful. I am disappointed, too. He is allowing the opposition to have too much power. Build some freakin railroads. Put us back to work.
All too true, Dan! Let me flush out my case for agreeing:
1) As Democratic Nominee winner, he consigned an undivided Jerusalem to the Israelis--something a US President has no business doing. 2) As President, he appointed the altogether untrustworthy Timothy Geithner to be Secretary of the Treasury. 3) He kept on Gates and Petreaus, and chose as Secretary of State an opponent whose hawkish foreign policy he had eloquently and intelligently criticized. 4) He made Ken Salazar Secretary of the Interior. 5) He authorizes continued building of THE WALL on our southern border--a monument to the KNOW-NOTHINGISM we Americans should long since have left behind.
Yes,, thinking folks sorely need a champion of sorts.
I believe we can have progress,, but there are so many liars with lots of money to weed out and defeat ! Keep talking out loud, and keep posting my friend!
THAT IS SCARY !!!!!
I remember the 1980's and the cry for:
TRICKLE DOWN ECONOMICS !!!
It all went up and none came down.
Nothing is going to change until we have public funding of campaigns. What is it about political bribes do we not understand?
If politicians are going to be beholden to their funders, those funders should be the taxpayers. And at $5 per taxpayer per year it would be a bargain. Even at 100 times that. We MUST lobby our senators and representative to co-sponsor the bill at:
http://fairelectionsnow.org/about-bill
Jack Lohman ...
http://MoneyedPoliticians.net
but the supreme court has always said that free speech is restricted by not allowing the rich to support with money their choice of candidates .... our only weapon is to VOTE !
Also the truth and nothing but the truth. But the decision in re Citizens United v. FEC would probably not have gone as it did without the precedent of Buckley v. Valeo (1976) identifying money as speech, and that in turn built on J.C. Bancroft Davis' insertion in re Santa Clara County v. Southern Pacific Railroad (1886) which granted corporations the Fourteenth Amendment rights of natural persons and effectively exempted them from the responsibilitie s associated with natural persons' exercise of those rights.
I THINK THEY GET AWAY WITH THIS BECAUSE THEY REPRESENT CORPORATE INTERESTS. JUST A FEW GLOBAL CORPORATIONS OWN ALMOST ALL MEDIA NOW AND GLOBAL CORPORATIONS ARE ALLOWED TO USE AS MUCH MONEY AND MEDIA AS THEY WANT TO INFLUENCE OUR ELECTIONS AND LEGISLATION.
The fundamental questions and answers we can ask and answer about all this are,
1. Why do we allow just a very few GLOBAL Corporations to OWN ALMOST ALL Media Enterprises in America for whatever purposes they have in mind. AND..., without even the requirements of operating under a FAIRNESS DOCTRINE?
2. Why do we allow ANY money outside of ONLY Public Funding into OUR Election Process?
3. Why do We contract almost all Government functions out to Corporations like We are Corporate Cash Cows for them?
...because our political culture, and yes, our civic culture as well, is rotted with corruption through and through. A revolution of the elites against the rest of us has been in engagement for many years, and basically they've won. It's a mop up operation now unless of course we muster the counter-revolution so richly needed. Not a military revolution actually, but tax revolt, protest, great suffering in non-violent resistance. When we all hurt badly enough we will have no choice. A cultural revolution will come. It must.
You will never overcome Global Corporate CONservative Media until the narrow grip is broken and Media is back in the hands of a hundred, separate, different and diverse owner-entities and they are required to under the rules of a strong FAIRNESS DOCTRINE.
AND.
You have to take all but Public Funding out of elections.
You have to shut down the American Government Cash Cow and stop making EVERYTHING about OUR GOVERNMENT open to the control of some Corporate Enterprise by way of contracting out ALL Government functions.
Government IS NOT a Business no matter what Corporate CONservatives would like Americans to believe.' Remind the American People just how much Government actually has their backs.
The reason Obama is lame is that he is just another tool of the military-industrial complex, like every other powerful Republican and Democrat.
We continue to think that it matters whether we vote Republican or Democratic. But both parties are utterly corrupt members of a conspiracy to bleed America white.
Every vote for a major-party candidate is a vote for the military-industrial complex.
Let's also not leave out the financiers and the enablers in the corporate-owned media, not to mention the educational system which educates/socializes/indoctrinates (take your pick) young people to either believe uncritically in the system or to cynically withdraw from it.
Let's join with Eisenhower's ghost and sing out a warning against the "military-industrial-financial-ideological complex."
I could probably go on, but this is enough to chew on for the moment.
There is little any president can do, except be the moral compass of the country by speaking truth to power. It is my hope that Obama will be elected to a second term and will become the voice for reason for the common man.
Politicians are silent on the issues of great importance to our future because they are politically unpopular. I hope that in a second term, Obama will put those important issues in front of the public. True and lasting change will happen when an educated and motivated public forces the issue.
Stop with the analysis and get on task!
Do you want the party that will rebuild America or the party the will give tax breaks to the rich?
Repeat as necessary.
The smallest corporations are being eaten alive and we will be held subservient to the Elite.
I see no solutions if Money is allowed to rule over people.
What is your monetary cap on my income to be considered obscenly rich. Whpo shall we start with? MAy be the Hoolywood celebrities? Who will be on the committee to define who is obcesnly rich or who is not? See, when capitalism is used as an end for profits first and foremost that is when it creates wealth and prosperity. When you use it a means, no capitalist will even want to create wealth, or he/she will begin to lobby the government to seek loopholes trying to bypass various rules and regulations. That is when corruption comes to the picture.
You have asked, meine freunde, "What's better: a nation where only the top 5% are wealthy, or a nation where all the people's needs are met abundantly?" Of course, the answer is the nation where ALL the people's needs are met ABUNDANTLY. But there is a little problem here. So far human beings did not invent this type of society. Those who tried brought more misery and suffering to people than "capitalist bastards." Coupled with your brave exclamation "let the revolution begin," your passionate phrases about sharing your love and so forth, reminded me a good old wisdom: "The road to hell is paved with good intentions." Eh..do not even want to continue... I only wish I could take to Cuba to live for a year as a Cuban. Could have been a good therapeutical remedy for you. All right, go on with your revolution. Let's see what you will accomplish.
Those who tried to have this kind of society failed because they tried to pour "new wine into old bottles". A new world requires new people, a revolution in every heart! (Good intentions also take you to heaven, my friend.)
Bless you. When I finish healing, I want to believe as you do. I'm working on it.
...and you are mine good friend!
About Love. Love is good, and I love Love. But, please, do not impose your love on me. Otherwise it will be qualified as a rape.
I like you Anres. Oh, and I think you're missing the point. I get as wound up as you, but genierae is writing something much bigger than your response grasps. With all due respect, love is the only motive I know of that is beyond corruption, is selfless and giving, and call me delusional, but maybe our only hope after all. No other capacity within us seems to be accomplishing much.
I have to admit that your postings are among the best on this forum in terms of arguments you make and questions you pose. Answering your rhetorical question: no, there is no system that HAS actually worked historically by providing everything to everybody. And there will be no such system. Yes, quest for a "system" is an ongoing experiment. My personal judgment (which certainly might be biased) is based on the comparison of US and those countries I happened to live (Soviet Union and then after 1990, "capitalist" Germany). So far I find social,economic and political system (as imperfect as it may be) in US is more user-friendly than in other countries. Perephrasing Winston Churchill, I can say that capitalism is a rotten system, but it is the best among other rotten systems. I guess we have different personal experiences, which obviously drew you to different conclusions.
My experiences are extensive, but the universe is sooo big and I will forever be sooo small. I read about 40,000 pages a year so I am open to any suggestion you make and will do some real homework!
Your comment is vastly simplistic and wrong. Obama is a coward and that isn't Obama bashing. That's a FACT. He, and most democrats, behave like wimps. The right totally frames the arguments of the day and good old Obama, Mr. Pragmatic himself, doesn't waste a breath seriously fighting back against the lunatic fringe which happens to be the entire right, and I do mean the whole shooting match. Sure, I'll vote Democrat with great regret and relief only in their being the lesser of evils. But don't you dare write off the disappointed as Obama bashing. I say he is a coward and will be a coward even if reelected. I didn't ask him to fix anything in two years, but what he has done is pathetic.
You're wrong. I look in the mirror long and hard with a picture of Obama in my hand and I beg to differ. HE is to blame and HAL says it right. He has all but pandered to the right. I voted for him because I believed in what he represented and HE has failed at his own vision. I didn't ask him to fix the whole 9 yards in 2 years, but what he has accomplished, no matter how you dress it up, is pathetic. If he had so much as accomplished single payer or at least really fought for it, this would be the New Democratic Century, and this would be true if he fought for us steadfastly win or lose. I will vote for this coward because the Repubs are worse, but I'd suggest that Obama, for God's sake, and you, took a longer look in the mirror.
And there's one more piece of the problem: Americans are too easily distracted to take a "good," let alone "long" look at anything. Half of adults never read another book after highschool, and in my small town, more people turned out for a cage-fighting event than voted in the last election. As Jefferson said, more or less, if you want democracy without educated voters, you want the impossible. The real question is whether Americans are informed enough to care enough to save ourselves? Or so culturally and politically ADD that we'll vote the the guys that got us into this and have no plan for getting us out?
As much as I agree with you on this, I have to tell you, genierae, that we have no other people for you.
You're growing on me Andres! I guess I am a romantic at heart. I like the idea that the President should be a heroic person, one who represents the best of our culture, a paragon of virtue who puts a face to all of the best in us. This may doom me to disappointment I suppose, but we have had such leaders in the past, one of whom you've named. If it history that makes great men/women, we're a tad over due and desperate. I just hoped Obama was the "one" and he never will be short of a miracle.
Obama let Geithner et al convince him that our problems were due to 1) Bush economic policies, and 2) a down business cycle.
The problems are in the fundamental structure of the economy and are systemic - sans the regulatory environment that grew out of the Great Depression - later to be dismantled by GOP true believers.
This is why the band-aide fixes aren't working - and that it (the stimulus) was too little thanks, to GOP/Tea Party hand wringing about deficits.
Result - 60% of US bankruptcies are due to medical bills. The game is to maximize profit by any means- even if it will lead to our destruction. It is a system - again Obama like Gorbachev - is too little too late.
Which is why we constantly go to war with somebody.As the military budget gets larger there is less to sustain our infra structure.
Greed is what gets us into this, where those that have most want more. In an economy where more people have money or at least access to it, more money gets spent on day to day things. When the top 1% owns 95% of the wealth the bottom 70% don't have a lot of money to toss around. If that bailout started at the bottom the money would have got to those who know how to earn it in the long run but at least it would have relieved the burden of those at the bottom. Instead, the banks got theirs and the rest of us got left with the debt. It hurts more cause it was our money to begin with.
problem. However, I would certainly like to know if the one/half Stimulus money is still to be given out, or it has
all been dispensed.
The Add would start:
Written Out and Spoken
What is the Republican Plan for the Economy if they take control of Congress.
Fade to pictures of soup lines.
Written Out and Spoken
This is what you get with deregulation, small government and advantages for the wealthy
Some kind of picture displaying opulence of the wealthy of that time…
` Written Out and Spoken
Do you really want to give the Republicans another chance?
More Great Depression pictures
What was the Democratic plan for law and order? Who knows? Pelosi said impeachment was "off the table" and Obama wants to put all that nasty stuff in the past even though our future is crippled with so many untold consequences for such irresponsibilit y.
But yet, I'll vote for Democrats once again because it would be worse than voting for Republicans. But does it really matter?
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