Economy

Economic Populist: Pick Grand Bargain! Get Recession! Hurray!

Burning the Midnight Oil for Economic Populism

Let's do a quick run-down of the last couple of decades of US economic history.

(1) Inflate a residential property and internet start-up bubble. The long-term unsustainable expansion in credit provides the national income growth that starts the chattering classes talking about the "Great Moderation".

(2) The dotcom bubble bursts, and recovery from the dotcom bubble rests on further inflation of the residential property bubble.

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You Can't Steal a Gift: Peer to Peer Politics by gmoke

Essay by gmoke, reposted by permission, from the European Tribune


November 6, 2012, the MIT Center for Civic Media and Department of Urban Planning had a conversation on "Peer to Peer Politics" with Steven Johnson, author of Future Perfect: The Case for Progress in a Networked World moderated by Aaron Naparstek, visiting scholar at MIT's DUSP, and featuring Harvard Law School's Yochai Benkler, Susan Crawford, and Lawrence Lessig. Video of the event online.

To my mind, the discussion was less about the electoral politics we usually associate with that word and more about how peer-to-peer [P2P] networks are already being used among diverse populations for civic activities and many other things. When Susan Crawford, founder of OneWebDay, paraphrased Kevin Kelly by saying "The internet was built by love. It's a gift," (The Web Runs on Love, Not Greed), I thought of the idea and the story behind the title of the book You Can't Steal a Gift about jazz players Dizzy Gillespie, Clark Terry, Milt Hinton, and Nat King Cole by Gene Lees (Lincoln, NE: Univ of NE Press, 2001 ISBN 0-8032-8034-3):

Phil Woods: "I was in Birdland, stoned, as I often was in those days. Dizzy and Art Blakey kidnapped me. Took me home to Dizzy's and sat me down and said, 'What are you moaning about? Why don't you get your own band?'...
 
"I asked them if a white guy could make it, considering the music was a black invention. I was getting a lot of flak about stealing not only Bird's music but his wife and family as well [Woods was married to Chan, Charlie Parker's widow]... And Dizzy said, 'You can't steal a gift. Bird gave the world his music, and if you can hear it you can have it.'"

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Laboring Under This Administration's Anti-Labor Ties

And no, I'm not talking about the past anti-labor ties like former COS Rahm Emanuel who called labor unions "f-ing retarded" and condescendingly opined about "where are they going to go?" if they expect more from Democrats. No, I'm not talking about the NAFTA and China PNTR hatchet man that helped crush US industry before he became mayor of the President's home town of Chicago attacking the teacher unions that helped elect this President. And I'm not talking the former U.S. Secretary of Commerce and JP Morgan Executive that also worked with Rahm and the Clinton administration to pass NAFTA either.

Of course, there still are plenty of anti-labor ties to choose from such as Jeffrey "China! China! China!" Immelt who serves as chairman of his outside panel of economic advisers while retaining his post as chairman of the board and CEO of the GE; the non tax paying conglomerate that outsourced its X-ray division from Wisconsin to China. Of course I don't need to which brings me to the main point of this piece.

(h/t Rick Pearlstein)

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Economic Populist: CBO, on the public dime, peddles BS to the public.

Burning the Midnight Oil for Economic Populism

Yves Smith at the excellent and insightful Naked Capitalism has recently been taking at a close look at the role of the Congressional Budget Office, the vaunted "CBO", in the "fiscal cliff" scam that the corporate aristocracy is attempting to perpetrate on us mere commoners.

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Warning: Swallowing the President's Bitter Pills May Cause Harsh Austerity

We are being told that the mess this President caused when he helped pass the Bush tax cuts in exchange for 1 year of unemployment insurance - which was unnecessary because Republicans caved on UE extension before - WITHOUT even securing a rise in the debt ceiling by putting his full trust in John Boehner with the full faith and credit of the US was "worth it." This of course gave Boehner immense political power and the right hostage needed to cause the debt ceiling debacle just like I predicted. Well here are are again dealing with the fallout.

Already? Obama Tells Supporters to Expect 'Bitter Pills'

As the Huffington Post, who listened in on the call, reports:

The president, speaking from a White House phone, cautioned listeners to expect disappointments during his second term. As he has in the past, Obama warned that he was prepared to swallow some bitter pills during the negotiations, including some that would agitate the base.
 

"As we move forward there are going to be new wrinkles and new frustrations, we can't predict them yet," he said. "We are going to have some triumphs and some successes, but there are going to be some tough days, starting with some of these negotiations around the fiscal cliff that you probably read about."

Though his encouragement to his activist base may be encouraging to some, the President's preemptive admission that he's willing to give away bargaining chips so early in the game will surely irk those who criticized Obama for his negotiating style throughout his first term. That will be doubly true for progressives who have publicly called for a more hardline stance when it comes to defending key social programs like Social Security, Medicare, and Medicaid.

We know from the president's interview with the Des Moines register that much of what was in the memo revealed by Bob Woodward as part and parcel of all of this nonsense we shouldn't even have to be dealing with in the first place is a starting point. Oh yes, many will screech about how Simpson Bowles is dead because the commission was a failure, but the horrible ideas live on through our elected leaders that keeps bringing them back to life.

Obama vows debt-cutting ‘grand bargain,’ immigration reform in Des Moines Register interview

"I am absolutely confident that we can get what is the equivalent of the grand bargain that essentially I've been offering to the Republicans for a very long time, which is $2.50 worth of cuts for every dollar in spending, and work to reduce the costs of our health care programs," Obama said. (The White House quickly clarified that he meant $2.50 of spending cuts for every dollar in new tax revenue.)

"We can easily meet—'easily' is the wrong word—we can credibly meet the target that the Bowles-Simpson Commission established of $4 trillion in deficit reduction, and even more in the out-years ...

This is not going to help the unemployed and it's economic illiteracy. When you hear things like, "We all agree we must pay down the deficit," it might as well be, "We all agree on economic illiteracy. Come on. Everybody's doing it." Anyone who is still making excuses for this doesn't even understand why this fake fiscal cliff, really an austerity bomb as Brian Beutler of TPM puts it, is coming back up in the first place.

“The past isn’t dead. It isn’t even past.” – William Faulkner

This is quite literally true so for all those "that was then this is now" excuse makers, you have a lot of studying and reading to do.

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Economic Populist: Capping Bush Tax Cuts fixes over half of fiscal problem

Burning the Midnight Oil for Economic Populism

Among the many things entirely lost in the mainstream media coverage of the "fiscal cliff" are the nature and magnitude of the country's fiscal challenge. The magnitude is why it is not a crisis, and the nature is why we would be better off "just doing nothing" ~ letting the whole Bush tax cuts expire and scrapping the zombie spending cuts ~ is better than the vast majority of "fixes" floating around in the mainstream media.

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Paul Krugman Makes A Good Point, Not That Anyone in the Obama Administration is Going to Care

So, Paul Krugman has officially kicked off Obama Part Deux with a very smart and sensible - as usual - editorial:

[Republicans are] threatening to block any deal on anything else unless they get their way. So they are, in effect, threatening to tank the economy unless their demands are met.

 

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The Lies of Neoliberalism; Governments Don't Create Jobs or Economic Growth by NY Brit Expat

It may be my masochism, but I actually watched the Presidential
debates. I also regularly watch the news over here in the UK. Cameron
and his cronies constantly spout this argument that governments cannot
create economic growth. During the Presidential debates, Mitt Romney
even went a step further; he argued that governments cannot create
employment. The Tory argument is a bit more sophisticated, but both
arguments have their roots in the fantasies of neoliberal economics of
which both the Tories and the Republicans have adopted in its most

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