Posted inPolitics: National

Job One for America

As America faces its worst run of job losses since the Great Depression with no end in sight, one thing should be clear. Our federal government is being run by a coalition of the financial sector, lobbyists for entrenched interests and a disciplined Republican opposition of dubious loyalty. Barack Obama is not only very close to being a failed president, he could be on track to be a one-termer if the GOP snags an opponent such as Gen. David Petraeus or even a rehabbed Mitt Romney. (The Nobel will only hurt Obama without substantive achievements for average Americans).

Perhaps the problem is centered on Obama and the cowardly Democrats in Congress (Memo to Blue Dogs: You'll lose anyway, so do the right thing and maybe you can pull a Harry Truman; oh, wait, Truman wasn't getting millions from the moneyed interests and hoping to get a job with them after politics). Could Hillary have done better? Or is this just the latest evidence of a quiet coup and no individual can change America's trajectory to self-immolation. Read Jeff Sharlet's The Family and David Wessel's In Fed We Trust (and throw in Maggie Mahar's Money Driven Medicine) and you begin to see the financialized theocracy we have become. One facing unsustainability on every front, including in a military whose quiet evangelization by the Christian right should raise alarms never before heard in America (were it covered by the media).

As for unemployment, the best Washington can do is become aroused over a tax credit for job creation. This won't work — it's not tied to real demand. And it will lower tax revenues, adding to the deficit. It's a stunning sign of America's enervation and institutional corruption that President Obama is not rolling out a crash program to modernize our rail system. It could be done now. It would create huge numbers of jobs, not only for construction but also for operating and maintenance. Real jobs that would last. And an infrastructure whose benefits would repay the Treasury many times over.

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Posted inUncategorized

How Detroit committed suicide

In the garage of my condo tower, someone parks a 1965 Buick Electra 225 convertible. It is sleek and big and powerful. This was Detroit, and in many ways America, at the zenith of its power.

Buick, like all GM divisions, still enjoyed great autonomy, including having its own design bureau. This car is a work of art. It is the successor to the legendary Roadmaster, and in those days Buick fans were fiercely loyal (my mother being one). GM cars were tiered so people could move up to a new GM brand as they became more affluent, as millions did in the 1950s and 1960s — Chevy to Pontiac to Oldsmobile and even Cadillac. Ah, but the Buick was special: glamorous, racy, classy and exclusive. Built union.

I think of all this, of course, as Chrysler is pushed into bankruptcy and General Motors may well face the same fate. What went wrong, and what does it say about America's future?

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Missing the point on a Detroit rescue

An industry that has been poorly managed, with executives looting it for huge bonuses and protected employees compensated far beyond the average American, making products that have caused untold damage to the planet, comes to Washington seeking a bailout. Without it, the executives say, the entire economy could be severely damaged. Of course lawmakers should say "hell no."

But they didn't. When the so-called financial services industry asked for a "rescue," lawmakers couldn't move fast enough.

American automakers are a different matter. Asking a fraction of what has been plowed into Wall Street — with not much to show for it — they are getting the brush off from the Bush administration and much of Congress. Myths proliferate about union compensation, this from the same people who hail obscene executive compensation and bonuses for the top swindlers on the Street. In fact, the union has been giving back for 20 years.

It's striking that the same people who celebrate the bootstrapping entrepreneur and the sanctity of contract are contemptuous of blue-collar workers who have created most of the wealth in a given business and painstakingly negotiated labor agreements that allowed their families to reach the middle class. And there's much carping about how the top executives failed to build cars for an expensive-energy future or to protect the environment. Yet policymakers consistently refused to insist on even modest improvements. Now it's so easy to say to Detroit: Drop dead.

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Apportioning blame for miserable cities

Forbes has published its first list of "miserable cities." Like all such magazine lists, it’s fairly arbitrary, somewhat silly and, in the case of Forbes, informed by its ideology. Thus, "high" tax rates help make a place "miserable." The deferred infrastructure, education, healthcare, environmental and social costs of such low-tax sprawlbergs as Las Vegas and Phoenix are not included.

If those places are so great for business, why do "miserable cities" like New York, Los Angeles and Philadelphia remain capitals of commerce, culture and talent? I’m waiting for Wall Street, rather than some bottom-feeder related to the housing industry, to move to Phoenix.

No matter. There are some things to be learned in the misery list.

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