The Arizona experiment
Posted inPhoenix Politics: Arizona/Phoenix

The Arizona experiment

Much has been made by "left-leaning" commentators, notably Thomas Frank, about the disaster created in Kansas by Gov. Sam Brownback's enactment of conservative policies. And yet check out this chart:

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And this:

3fredgraph

Not to diminish "What's the Matter With Kansas," but Arizona is in worse shape. It arguably offers the better example of what happens when orthodox right-wing policies are enacted in a state without the oil and massive federal investments enjoyed by Texas. That Arizona is a growing, highly urbanized state brings into even starker relief the complete bankruptcy of the Kookocracy's "conservative ideas."

And they own this mess. The interregnum of St. Janet saw a constitutionally weak governor playing defense and never tackling the sacred cows of land use, revenue or water. Arizona's ongoing woes are the work of the regressive right that has taken over the Republican Party.

And yet, polls show at best a dead heat between Democratic gubernatorial candidate Fred DuVal — in every way the superior contender — and Republican Doug Ducey. And no chance for Democrats to gain control of the truly powerful branch of government, the state Legislature.

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Posted inPolitics: National

Let’s look at the fundamentals of the American economy

Republican John Sidney McCain III is trying desperately to back away from his "fundamentals of the economy are strong" line, even going so far as to say he meant American workers. But not so fast. In fact, it is the fundamentals of the American economy that are in dangerous trouble. Let us count the ways. I’m going to have to give you some straight talk, my friends:

1. Debt. The nation is deeply in hock to creditors worldwide. We used this line of credit to finance the housing bubble, wars in Iraq and Afghanistan, tax cuts to the richest Americans, rebate checks that went into the ether and the privatization of hundreds of billions of dollars in government services. It’s paying for the bailout of Bear, Sterns and it stands to take a devastating shock from Freddie and Fannie. From government to business to consumers, Americans are debtors, and most of the debt has been pissed away on war, sprawl, speculation and corruption, as opposed to building something for the future.

As the economist Nouriel Roubini has pointed out, the current account deficit in the ’90s came back as investment in private innovation, but for the past eight years it has been used to finance deficit spending and debt. Moreover, now much of this debt is held by nations that do not necessarily wish us well, including China and the petro-states such as Saudi Arabia.

This situation dangerously limits our options in foreign policy. It makes it a near certainty that living standards will take a big hit as we have to pay it back. Remember, when the Soviet Union collapsed, the first people in the door were the bankers, wanting to be repaid for the debt the Bolsheviks defaulted on after the 1917 revolution.

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