Posted inPolitics: National

Turning and turning

We are told repeatedly by our rulers in business, politics and the media that the big hurdle to addressing climate change and health care is cost. Somehow war without end, the global effects of climate change and the towering costs of health care even as more Americans do without it are "free." And so it goes.

This is how we live now. There was indeed one conservative in last fall's presidential election and he now sits in the White House. Barack Obama fits the Burkean mold of slow change, respectful of tradition and custom, seeking to preserve the best of existing arrangements. Unfortunately, thirty years of right-wing revolution (represented by Mr. Obama's opponent, the wealthy Republican John Sidney McCain III) have driven these laudable benchmarks so far to the extreme that Mr. Obama's innate restraint is exactly the wrong temperament for this pivotal moment in history.

On health care, one wonders if his heart was ever in it. This has been a colossal failure of the Democratic Party. The New Deal was not the product of a single, 2,000-plus page bill, but of scores of pieces of legislation over years. It delivered nearly instant relief to the nation's suffering, in both substance and confidence-building, helping to ensure continued Democratic majorities to keep it going. Under Harry Reid and Nancy Pelosi, we have a massive dog's breakfast that will come to no good, and be undone by the Republicans because its good elements will take too long to kick in. Why, for example, not one bill that outlawed the savage practice of denying insurance based on pre-existing conditions, or charging outlandish premiums for it — and having it implemented the moment the president signed the legislation? Another could have instantly required pharmaceutical companies to bid for Medicare drugs, lowering costs at the stroke of a pen. Yet another would have eliminated antitrust protections for the big insurers. And another still would have been a public option, if not Medicare for all — and let the filibuster happen and its instigators pay the fearsome price in the next election.

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Posted inUncategorized

Stimulus lesson

Here's the salient paragraphs from a New York Times story today on where the big Japanese stimulus of the 1990s went wrong:“In hindsight, Japan should have built public works that…
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Posted inPolitics: National

So much for the honeymoon

I keep telling myself that the woozy feeling that the Obama administration is already failing is mainly due to the 24-hour news cycle. We get to see the sausage-making in real time. And the sudden ubiquity of Republicans all over the corporate media, despite the public's rejection of their failed ideas. I keep telling myself all this.

Still, some worries. If Rahm Emmanuel is so incredibly effective as Obama's right-hand, he has yet to show it. The so-called stimulus is bogged down and deeply flawed. One cabinet nominee after another is tripped by tax or conflict-of-interest problems. It's nice that Obama admitted a mistake, but he has yet to focus, in simple, Reaganesque language what he wants and use it to go over the head of an obstructionist Congress.

Why am I not comforted that a group of "moderate" senators is trying to cut $100 billion of "fat" — the media's term — from the stimulus? In this supposed lard is mass transit funding desperately needed for systems that are already cutting back — hurting the working poor the hardest. Transit and rail are my markers for real change, and given stable funding they would provide jobs paying family wages that couldn't be sent overseas. Fat? How about South Carolina's unremarked interstate to nowhere?

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Posted inUncategorized

The real risks of the stimulus

Renegade — the president's secret service code name — is pushing hard for "his" stimulus bill as it reaches the House floor today. What's in is? That's difficult to tell as the horse-trading continues, and as Obama tries to rope in at least some Republican support. FDR and the Democratic Congress in 1933 simply steamrolled the Republicans who demanded balanced budgets and reactionary policies — but never mind. In the end, this will be a package crafted not only by 535 lawmakers, but countless lobbyists and staff. My biggest fear is that it will not be a renegade stimulus — transformative and focused on the future.

Let me count the ways:

1. Tax cuts in the current environment won't provide help. U.S. tax rates and dodges are already generally at lows not seen since the Coolidge years. Obama promised a working-class tax cut. Fine. He's bowed to Grassley to provide more alternative-minimum tax relief. OK. But these should be different bills. They're not stimulative. Individuals will squirrel away their checks or use them to pay down credit-card debt. Corporations are already paying nothing in many cases. As for "investors and risk-takers" — the Bush years demonstrated that tax cuts on investments merely fuel speculation while encouraging job-killing mergers and offshoring. Not for nothing did wages stagnate during those halcyon years. Perhaps worst of all, it continues the destructive "tax cut" entitlement mindset that Americans can get something for nothing.

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Posted inPolitics: National

A stimulus mistake?

Much of the details of the new stimulus have yet to be known. What's emerging so far is cause for concern. For one thing, the $300 billion in tax cuts may be smart politics, but it's questionable economics and policy. Then there's the issue of how federal dollars might be used to prime the pump, with so much going to backfill basic programs being defunded by cash-strapped states, and lobbyists of the powerful highway-sprawl consortium lining up for the "roads and bridges" money.

George W. Bush and eight years of Republican misrule — really more than a quarter century — are leaving the new administration with the worst mess in nearly 80 years. And remember, all this was validated over and over by a majority of Americans at the polls (maybe not in 2000 and 2004). It's an open question whether any president can lead the changes really necessary to address the Great Disruption, of which the economic collapse is only part. We'll see. But the barriers to real change we can believe in are mammoth.

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Posted inPhoenix Politics: National

The recession this time

Another recession, and for many Americans the post-2001 recovery and expansion felt like one long tough slog. It would have felt worse had they been living within their means, but liar-loan mortgages, bottomless credit cards and cheap stuff from China allowed them to think they were rolling in the good times, just like the hedge-fund managers and CEOs.

Another recession, and it won’t be like 2001, when a fraud-driven bubble burst, or 1991, when the savings-and-loan scandal sank the economy. It will have fraud, bursting bubbles and unsustainable finance, to be sure. But it may be far worse than anything we have experienced since 1982, maybe longer.

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Wishful-thinking stimulus

There’s a great deal of silliness and sophistry about the economy at this dangerous moment, but why should it be different from anything else in American life?

Washington debates a “stimulus” package of tax cuts and newspapers write headlines to tell “average readers” (whatever the hell that means) that the feds will put hundreds of dollars in their pockets. Wall Street does a dead-cat bounce and commentators who were darkly warning of recession are now talking about a miraculous comeback. In the New York Times, the normally sensible David Leonhardt was saddled with a headline that emblemized the silliness: “Worries That the Good Times Were Mostly a Mirage.”

In reality, the economy risks finally tipping over from a series of imbalances and forces long in the making. The Fed is very limited in its ability to right the ship. And any “stimulus” risks making things worse, aside from extending unemployment benefits, which is somehow anathema to “conservatives.”

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