Follow by Email

Sunday, January 30, 2011

AYN RAND WORLD CLASS HYPOCRITE

Ayn Rand Railed Against Government Benefits, But Grabbed Social Security and Medicare When She Needed Them

At least she put up a fight before succumbing to the imperatives of the real world.
 
 
 
LIKE THIS ARTICLE ?
Join our mailing list:

Sign up to stay up to date on the latest headlines via email.

 
 
 
 
 
Ayn Rand was not only a schlock novelist, she was also the progenitor of a sweeping “moral philosophy” that justifies the privilege of the wealthy and demonizes not only the slothful, undeserving poor but the lackluster middle-classes as well.
Her books provided wide-ranging parables of "parasites," "looters" and "moochers" using the levers of government to steal the fruits of her heroes' labor. In the real world, however, Rand herself received Social Security payments and Medicare benefits under the name of Ann O'Connor (her husband was Frank O'Connor).
As Michael Ford of Xavier University's Center for the Study of the American Dream wrote, “In the end, Miss Rand was a hypocrite but she could never be faulted for failing to act in her own self-interest.”
Her ideas about government intervention in some idealized pristine marketplace serve as the basis for so much of the conservative rhetoric we see today. “The reason I got involved in public service, by and large, if I had to credit one thinker, one person, it would be Ayn Rand,” said Paul Ryan, the GOP's young budget star at a D.C. event honoring the author. On another occasion, he proclaimed, “Rand makes the best case for the morality of democratic capitalism.”
“Morally and economically,” wrote Rand in a 1972 newsletter, “the welfare state creates an ever accelerating downward pull.”
Journalist Patia Stephens wrote of Rand:
[She] called altruism a “basic evil” and referred to those who perpetuate the system of taxation and redistribution as “looters” and “moochers.” She wrote in her book “The Virtue of Selfishness” that accepting any government controls is “delivering oneself into gradual enslavement.”
Rand also believed that the scientific consensus on the dangers of tobacco was a hoax. By 1974, the two-pack-a-day smoker, then 69, required surgery for lung cancer. And it was at that moment of vulnerability that she succumbed to the lure of collectivism.
Evva Joan Pryor, who had been a social worker in New York in the 1970s, was interviewed in 1998 by Scott McConnell, who was then the director of communications for the Ayn Rand Institute. In his book, 100 Voices: An Oral History of Ayn Rand, McConnell basically portrays Rand as first standing on principle, but then being mugged by reality. Stephens points to this exchange between McConnell and Pryor.
“She was coming to a point in her life where she was going to receive the very thing she didn’t like, which was Medicare and Social Security,” Pryor told McConnell. “I remember telling her that this was going to be difficult. For me to do my job she had to recognize that there were exceptions to her theory. So that started our political discussions. From there on – with gusto – we argued all the time.
The initial argument was on greed,” Pryor continued. “She had to see that there was such a thing as greed in this world. Doctors could cost an awful lot more money than books earn, and she could be totally wiped out by medical bills if she didn’t watch it. Since she had worked her entire life, and had paid into Social Security, she had a right to it. She didn’t feel that an individual should take help.”
Rand had paid into the system, so why not take the benefits? It's true, but according to Stephens, some of Rand's fellow travelers remained true to their principles.
Rand is one of three women the Cato Institute calls founders of American libertarianism. The other two, Rose Wilder Lane and Isabel “Pat” Paterson, both rejected Social Security benefits on principle. Lane, with whom Rand corresponded for several years, once quit an editorial job in order to avoid paying Social Security taxes. The Cato Institute says Lane considered Social Security a “Ponzi fraud” and “told friends that it would be immoral of her to take part in a system that would predictably collapse so catastrophically.” Lane died in 1968.
Paterson would end up dying a pauper. Rand went a different way.
But at least she put up a fight before succumbing to the imperatives of the real world – one in which people get sick, and old, and many who are perfectly decent and hardworking don't end up being independently wealthy.
The degree to which Ayn Rand has become a touchstone for the modern conservative movement is striking. She was a sexual libertine, and, according to writer Mark Ames, she modeled her heroic characters on one of the most despicable sociopaths of her time. Ames’ conclusion is important for understanding today’s political economy. “Whenever you hear politicians or Tea Partiers dividing up the world between ‘producers’ and ‘collectivism,’” he wrote, “just know that those ideas and words more likely than not are derived from the deranged mind of a serial-killer groupie....And when you see them taking their razor blades to the last remaining programs protecting the middle class from total abject destitution—Social Security, Medicare and Medicaid—and bragging about how they are slashing these programs for ‘moral’ reasons, just remember Rand’s morality and who inspired her.”
Now we know that Rand was also just as hypocritical as the Tea Party freshman who railed against “government health care” to get elected and then whined that he had to wait a month before getting his own Cadillac plan courtesy of the taxpayers.
But, as I note in my book, The Fifteen Biggest Lies About the Economy, that's par for the course. A central rule of the U.S. political economy is that people are attracted to the idea of “limited government” in the abstract—and certainly don’t want the government intruding in their homes—but they really, really like living in a society with adequately funded public services.
That's just as true for an icon of modern conservatism as it is for a poor mother getting public health care for her kids.

Saturday, January 29, 2011

BEACH REPORT:



    Musing about EGYPT

   Gov'ts everywhere should  get themselves focused this week on the  rebellions taking place on the streets of the Middle East.  Deny millions even a minimal amount of actual participation in how their governed, while at the same time providing them little or nothing in the way of an economy or public services and this is what you eventually get. Unfortunately, I'm afraid most of these rebellions , revolts, uprisings &  revolutions will probably end up with most of these societies transforming into something even worse then existed before the turmoil.  I say this, because most of these countries have very little in the way of any historical experience with even the most cursory of democratic institutions. Egypt in particular has seen nothing but dictatorship since  King Farouk was deposed back in the early 50's, before that all most all of these places were colonies of some European state. My guess is were either going to see Egypt become another tyrannical so called Islamic Republic ( like IRAN ) or more likely an even more brutal military Dictatorship like so many 60's / 70's style South American countries.  No matter how it turns out the result is probably going to be ugly for us. I hope were not seeing the ME hurtling toward another major War, since my guess is one thing all these "new"regimes will have in common is a deep seated hatred of the West in general and Israel and the U.S. in particular. 


Friday, January 28, 2011

SCIENCE FRIDAY - The Horizon & Balance

Health

To Stay Stable At Sea, Look to the Horizon

By Stephanie Pappas, LiveScience Senior Writer

posted: 27 January 2011 04:48 pm ET

Looking into the distance has long been touted as a way to stay upright and free of seasickness despite the pitch and roll of a boat. Unlike some old wives' tales, horizon-gazing is good advice, according to a study published Jan. 26 in the journal Psychological Science. Staring at the horizon really does make people steadier while at sea.

The results could help researchers better understand the maddening phenomenon of motion sickness, said study author Thomas Stoffregen, a cognitive scientist at the University of Minnesota.

"It’s the people who become wobbly who subsequently become motion sick," Stoffregen said in a statement.


"I'm really an oddball for these folks, because they're studying oceanography, like hydrothermal vents. Here's this behavioral scientist, calling them up," Stoffregen said.When standing on dry land, people sway back and forth by about 1.5 inches (4 centimeters) every 12 to 15 seconds. To find out how this changes on a ship, Stoffregen and his colleagues contacted the U.S. consortium that runs scientific research ships.

Stoffregen stays out of the oceanographers' way, boarding the ships between other projects. For the current study, he stayed on the research vessel Atlantis during a journey across the Gulf of California (between the Baja Peninsula and the Mexican mainland).

The researchers asked crew-member volunteers to stand on a force plate that would measure their movements, first on dry land in Mexico and then on the Atlantis. The crew members were told to look either at something about 16 inches (40 centimeters) in front of them or to focus on the horizon.

Although it might seem that looking at something steady would make the ship's movement all the more noticeable, it helped to focus on a distant, steady point on the horizon while at sea, the researchers found. On land, people were more stable when looking at something close to them, but at sea, they stayed steadier while gazing far away.

Stoffregen suspects that the horizon provides a helpful point of reference, allowing people to sense the difference between their body's natural motion and the motion of the ship. He'd hoped to study gaze in relationship to seasickness, but none of his crew-member volunteers were afflicted. The best opportunity to capture maximum seasickness misery would be to catch a ride on a ship full of undergraduate oceanography majors on their first nautical voyage, Stoffregen said.

"I'd give my right arm to get on one of those," he said.


SHIP OF FOOLS

You'd have thought Atlantic City would have known this when it removed the ability of it's guests to do just this on the boardwalk. People purposely came down here to do just that, to stand at the rail of the walk and gaze upon the horizon out at sea, as if they were on a great sea voyage. It was an attempt to get some balance and bearing in lives which in many cases have been set adrift. Today more then ever we need the view from our boards, a view denied us by a ship of fools called the Government.

Thursday, January 27, 2011

THE IMPERIAL LEGIONS

Cow Most Sacred: Why Military Spending Remains Untouchable

by Andrew Bacevich

In defense circles, “cutting” the Pentagon budget has once again become a topic of conversation. Americans should not confuse that talk with reality. Any cuts exacted will at most reduce the rate of growth. The essential facts remain: U.S. military outlays today equal that of every other nation on the planet combined, a situation without precedent in modern history.

The Pentagon presently spends more in constant dollars than it did at any time during the Cold War -- this despite the absence of anything remotely approximating what national security experts like to call a “peer competitor.” Evil Empire? It exists only in the fevered imaginations of those who quiver at the prospect of China adding a rust-bucket Russian aircraft carrier to its fleet or who take seriously the ravings of radical Islamists promising from deep inside their caves to unite the Umma in a new caliphate.

What are Americans getting for their money? Sadly, not much. Despite extraordinary expenditures (not to mention exertions and sacrifices by U.S. forces), the return on investment is, to be generous, unimpressive. The chief lesson to emerge from the battlefields of the post-9/11 era is this: the Pentagon possesses next to no ability to translate “military supremacy” into meaningful victory.

Washington knows how to start wars and how to prolong them, but is clueless when it comes to ending them. Iraq, the latest addition to the roster of America’s forgotten wars, stands as exhibit A. Each bomb that blows up in Baghdad or some other Iraqi city, splattering blood all over the streets, testifies to the manifest absurdity of judging “the surge” as the epic feat of arms celebrated by the Petraeus lobby.

The problems are strategic as well as operational. Old Cold War-era expectations that projecting U.S. power will enhance American clout and standing no longer apply, especially in the Islamic world. There, American military activities are instead fostering instability and inciting anti-Americanism. For Exhibit B, see the deepening morass that Washington refers to as AfPak or the Afghanistan-Pakistan theater of operations.

Add to that the mountain of evidence showing that Pentagon, Inc. is a miserably managed enterprise: hide-bound, bloated, slow-moving, and prone to wasting resources on a prodigious scale -- nowhere more so than in weapons procurement and the outsourcing of previously military functions to “contractors.” When it comes to national security, effectiveness (what works) should rightly take precedence over efficiency (at what cost?) as the overriding measure of merit. Yet beyond a certain level, inefficiency undermines effectiveness, with the Pentagon stubbornly and habitually exceeding that level. By comparison, Detroit’s much-maligned Big Three offer models of well-run enterprises.

Impregnable Defenses

All of this takes place against the backdrop of mounting problems at home: stubbornly high unemployment, trillion-dollar federal deficits, massive and mounting debt, and domestic needs like education, infrastructure, and employment crying out for attention.

Yet the defense budget -- a misnomer since for Pentagon, Inc. defense per se figures as an afterthought -- remains a sacred cow. Why is that?

The answer lies first in understanding the defenses arrayed around that cow to ensure that it remains untouched and untouchable. Exemplifying what the military likes to call a “defense in depth,” that protective shield consists of four distinct but mutually supporting layers.

Institutional Self-Interest: Victory in World War II produced not peace, but an atmosphere of permanent national security crisis. As never before in U.S. history, threats to the nation’s existence seemed omnipresent, an attitude first born in the late 1940s that still persists today. In Washington, fear -- partly genuine, partly contrived -- triggered a powerful response.

One result was the emergence of the national security state, an array of institutions that depended on (and therefore strove to perpetuate) this atmosphere of crisis to justify their existence, status, prerogatives, and budgetary claims. In addition, a permanent arms industry arose, which soon became a major source of jobs and corporate profits. Politicians of both parties were quick to identify the advantages of aligning with this “military-industrial complex,” as President Eisenhower described it.

Allied with (and feeding off of) this vast apparatus that transformed tax dollars into appropriations, corporate profits, campaign contributions, and votes was an intellectual axis of sorts -- government-supported laboratories, university research institutes, publications, think tanks, and lobbying firms (many staffed by former or would-be senior officials) -- devoted to identifying (or conjuring up) ostensible national security challenges and alarms, always assumed to be serious and getting worse, and then devising responses to them.

The upshot: within Washington, the voices carrying weight in any national security “debate” all share a predisposition for sustaining very high levels of military spending for reasons having increasingly little to do with the well-being of the country.

Strategic Inertia: In a 1948 State Department document, diplomat George F. Kennan offered this observation: “We have about 50 percent of the world's wealth, but only 6.3 percent of its population.” The challenge facing American policymakers, he continued, was “to devise a pattern of relationships that will permit us to maintain this disparity.” Here we have a description of American purposes that is far more candid than all of the rhetoric about promoting freedom and democracy, seeking world peace, or exercising global leadership.

The end of World War II found the United States in a spectacularly privileged position. Not for nothing do Americans remember the immediate postwar era as a Golden Age of middle-class prosperity. Policymakers since Kennan’s time have sought to preserve that globally privileged position. The effort has been a largely futile one.

By 1950 at the latest, those policymakers (with Kennan by then a notable dissenter) had concluded that the possession and deployment of military power held the key to preserving America’s exalted status. The presence of U.S. forces abroad and a demonstrated willingness to intervene, whether overtly or covertly, just about anywhere on the planet would promote stability, ensure U.S. access to markets and resources, and generally serve to enhance the country’s influence in the eyes of friend and foe alike -- this was the idea, at least.

In postwar Europe and postwar Japan, this formula achieved considerable success. Elsewhere -- notably in Korea, Vietnam, Latin America, and (especially after 1980) in the so-called Greater Middle East -- it either produced mixed results or failed catastrophically. Certainly, the events of the post-9/11 era provide little reason to believe that this presence/power-projection paradigm will provide an antidote to the threat posed by violent anti-Westernjihadism. If anything, adherence to it is exacerbating the problem by creating ever greater anti-American animus.

One might think that the manifest shortcomings of the presence/power-projection approach -- trillions expended in Iraq for what? -- might stimulate present-day Washington to pose some first-order questions about basic U.S. national security strategy. A certain amount of introspection would seem to be called for. Could, for example, the effort to sustain what remains of America’s privileged status benefit from another approach?

Yet there are few indications that our political leaders, the senior-most echelons of the officer corps, or those who shape opinion outside of government are capable of seriously entertaining any such debate. Whether through ignorance, arrogance, or a lack of imagination, the pre-existing strategic paradigm stubbornly persists; so, too, as if by default do the high levels of military spending that the strategy entails.

Cultural Dissonance: The rise of the Tea Party movement should disabuse any American of the thought that the cleavages produced by the “culture wars” have healed. The cultural upheaval touched off by the 1960s and centered on Vietnam remains unfinished business in this country.

Among other things, the sixties destroyed an American consensus, forged during World War II, about the meaning of patriotism. During the so-called Good War, love of country implied, even required, deference to the state, shown most clearly in the willingness of individuals to accept the government’s authority to mandate military service. GI’s, the vast majority of them draftees, were the embodiment of American patriotism, risking life and limb to defend the country.

The GI of World War II had been an American Everyman. Those soldiers both represented and reflected the values of the nation from which they came (a perception affirmed by the ironic fact that the military adhered to prevailing standards of racial segregation). It was “our army” because that army was “us.”

With Vietnam, things became more complicated. The war’s supporters argued that the World War II tradition still applied: patriotism required deference to the commands of the state. Opponents of the war, especially those facing the prospect of conscription, insisted otherwise. They revived the distinction, formulated a generation earlier by the radical journalist Randolph Bourne, that distinguished between the country and the state. Real patriots, the ones who most truly loved their country, were those who opposed state policies they regarded as misguided, illegal, or immoral.

In many respects, the soldiers who fought the Vietnam War found themselves caught uncomfortably in the center of this dispute. Was the soldier who died in Vietnam a martyr, a tragic figure, or a sap? Who deserved greater admiration: the soldier who fought bravely and uncomplainingly or the one who served and then turned against the war? Or was the war resister -- the one who never served at all -- the real hero?

War’s end left these matters disconcertingly unresolved. President Richard Nixon’s 1971 decision to kill the draft in favor of an All-Volunteer Force, predicated on the notion that the country might be better served with a military that was no longer “us,” only complicated things further. So, too, did the trends in American politics where bona fide war heroes (George H.W. Bush, Bob Dole, John Kerry, and John McCain) routinely lost to opponents whose military credentials were non-existent or exceedingly slight (Bill Clinton, George W. Bush, and Barack Obama), yet who demonstrated once in office a remarkable propensity for expending American blood (none belonging to members of their own families) in places like Somalia, Iraq, and Afghanistan. It was all more than a little unseemly.

Patriotism, once a simple concept, had become both confusing and contentious. What obligations, if any, did patriotism impose? And if the answer was none -- the option Americans seemed increasingly to prefer -- then was patriotism itself still a viable proposition?

Wanting to answer that question in the affirmative -- to distract attention from the fact that patriotism had become little more than an excuse for fireworks displays and taking the occasional day off from work -- people and politicians alike found a way to do so by exalting those Americans actually choosing to serve in uniform. The thinking went this way: soldiers offer living proof that America is a place still worth dying for, that patriotism (at least in some quarters) remains alive and well; by common consent, therefore, soldiers are the nation’s “best,” committed to “something bigger than self” in a land otherwise increasingly absorbed in pursuing a material and narcissistic definition of self-fulfillment.

In effect, soldiers offer much-needed assurance that old-fashioned values still survive, even if confined to a small and unrepresentative segment of American society. Rather than Everyman, today’s warrior has ascended to the status of icon, deemed morally superior to the nation for which he or she fights, the repository of virtues that prop up, however precariously, the nation’s increasingly sketchy claim to singularity.

Politically, therefore, “supporting the troops” has become a categorical imperative across the political spectrum. In theory, such support might find expression in a determination to protect those troops from abuse, and so translate into wariness about committing soldiers to unnecessary or unnecessarily costly wars. In practice, however, “supporting the troops” has found expression in an insistence upon providing the Pentagon with open-ended drawing rights on the nation’s treasury, thereby creating massive barriers to any proposal to affect more than symbolic reductions in military spending.

Misremembered History: The duopoly of American politics no longer allows for a principled anti-interventionist position. Both parties are war parties. They differ mainly in the rationale they devise to argue for interventionism. The Republicans tout liberty; the Democrats emphasize human rights. The results tend to be the same: a penchant for activism that sustains a never-ending demand for high levels of military outlays.

American politics once nourished a lively anti-interventionist tradition. Leading proponents included luminaries such as George Washington and John Quincy Adams. That tradition found its basis not in principled pacifism, a position that has never attracted widespread support in this country, but in pragmatic realism. What happened to that realist tradition? Simply put, World War II killed it -- or at least discredited it. In the intense and divisive debate that occurred in 1939-1941, the anti-interventionists lost, their cause thereafter tarred with the label “isolationism.”

The passage of time has transformed World War II from a massive tragedy into a morality tale, one that casts opponents of intervention as blackguards. Whether explicitly or implicitly, the debate over how the United States should respond to some ostensible threat -- Iraq in 2003, Iran today -- replays the debate finally ended by the events of December 7, 1941. To express skepticism about the necessity and prudence of using military power is to invite the charge of being an appeaser or an isolationist. Few politicians or individuals aspiring to power will risk the consequences of being tagged with that label.

In this sense, American politics remains stuck in the 1930s -- always discovering a new Hitler, always privileging Churchillian rhetoric -- even though the circumstances in which we live today bear scant resemblance to that earlier time. There was only one Hitler and he’s long dead. As for Churchill, his achievements and legacy are far more mixed than his battalions of defenders are willing to acknowledge. And if any one figure deserves particular credit for demolishing Hitler’s Reich and winning World War II, it’s Josef Stalin, a dictator as vile and murderous as Hitler himself.

Until Americans accept these facts, until they come to a more nuanced view of World War II that takes fully into account the political and moral implications of the U.S. alliance with the Soviet Union and the U.S. campaign of obliteration bombing directed against Germany and Japan, the mythic version of “the Good War” will continue to provide glib justifications for continuing to dodge that perennial question: How much is enough?

Like concentric security barriers arrayed around the Pentagon, these four factors -- institutional self-interest, strategic inertia, cultural dissonance, and misremembered history -- insulate the military budget from serious scrutiny. For advocates of a militarized approach to policy, they provide invaluable assets, to be defended at all costs.

Wednesday, January 26, 2011

TRICKLE DOWN PART 2

Obama’s State of the Union: No Jobs but More Business Tax Cuts

by Jack Rasmus

Not a word about the 25 million still jobless. Nothing about how to help the more than 7 million homeowners who have, or the additional 4 million who will soon, face foreclosures and evictions. Absolute silence about the dozens of states and hundreds of local governments in deepening fiscal crisis and approaching bankruptcy-and the hundreds of thousands of public employees who will pay for that bankruptcy with their jobs, wages, pensions, and health benefits. OK, some vague references to infrastructure and alternative energy jobs-over the next 25 years. Paid for by Obam's explicit reference to cut Medicare and Medicaid benefits for tens of millions.

But the most disturbing element of Obama's State of the Union address last Tuesday night was his firm commitment to cut corporate taxes even further, and thereafter to move on to ‘simplify' the US tax code in general-i.e. a code word in policy circles for further reducing top tax brackets which always results in tax cuts for the wealthiest households.

What Obama proposed in his address on Tuesday was a classic continuation of a supply side, ideological program focusing on business tax reduction, supplemented by various other measures to reduce business costs at the expense of consumers, workers, and others.

But the problem today is not excessively high business costs. It's not a supply side problem. Business has been cutting costs to the bone the past three years with massive layoffs, wage reductions, employee benefit cuts, hiring part time and temp workers, and implementing various productivity boosting measures. Obama and Congress have further lavished tax cuts and subsidies on business at historic levels the past two years. The Federal Reserve in turn has reduced business costs still further by reducing interest rates to record low levels. The result of all this business cost reduction has been a rapid return to pre-crisis levels of business profits and an accumulated corporate cash hoard of more than $2 trillion. And none of this $2 trillion has been spent by business thus far to create jobs to any reasonable extent.

In his address Obama praised the fact that business created 1 million jobs in 2010. But the majority of the 1 million were temp and part time jobs. And at that 1 million a year rate of job creation it will take 15 years just to recover the jobs lost in the recent recession. Yet Obama maintains Business needs further cost reduction assistance, and still more business tax cuts to ‘make them more competitive'.

The problem in the US economy, now experiencing the most lopsided (and weakest) economic ‘recovery' from any recession since 1947, is not too high business costs or insufficient supply side (business tax) stimulus. The problem is demand side-i.e. not enough income for the 90 million middle and working class households. That insufficient income means first and foremost not enough jobs. And Obama last Tuesday night said nothing of substance about how to create jobs today or even in the next one to two years. Job creation was relegated to the distant future, stretched out over the next 25 years.

The US economy and households do not need a 25 year job creation plan. They need an immediate job creation program. And they need a definitive solution to prevent 10 million foreclosures. And the better get quickly a rescue of the states and cities, before the local government crisis sinks the municipal bond markets and subsequently precipitates another ‘subprime'-like financial implosion. Yet no mention of any of this in the State of the Union address, as if these weren't the most serious issues confronting the US economy today.

In his Tuesday address Obama clearly followed in the footsteps of George W. Bush. Bush first passed more than $3 trillion in tax cuts for wealthy households between 2001-2003 by cutting capital gains, dividends, and estate taxes. (Obama last December extended the same for two more years). Bush then followed up in 2004 with several industry-by-industry specific corporate tax cuts worth another $1 trillion. (Obama now follows up with proposals to cut the corporate tax rate). Bush in 2005 then proposed to revise the general tax code in his second term to make it all permanent. Obama and the Republican Congress will pass the additional corporate tax cuts this year, then move on to the general tax code revision in 2012 that will ‘simplify' (lower) taxes on the wealthiest households before the next general elections.

On Tuesday Obama thus echoed the tired corporate refrain that ‘tax cuts create jobs'. His new twist is that the tax cuts are necessary to ‘make US corporations more globally competitive' vis-à-vis their foreign rivals. In other words, the primary focus of the tax cuts is to benefit US multinational corporations. As the argument goes, if they are ‘more competitive' (i.e. if their costs are less), they will be able to get a larger share of global exports and sales, which will mean more investment and jobs in the U.S.

But for more than a decade now multinational corporations as a group have been steadily reducing jobs in the U.S., and will continue to do so. Obama's corporate tax cuts will result in fewer-not more-jobs in the U.S., as corporations use the additional income to continue to invest in new equipment that will result in job displacement rather than new job creation.

More tax cuts for multinationals could also prove to have only a temporary effect at best at boosting exports and profits, and thus investment and jobs. The present period is one in which all the major global economic sectors-the U.S., the Eurozone, China, Japan, the Asian periphery, and BRICs like India and Brazil, are all intensifying their fight over the remaining global export pie.

Their respective, domestic economies have all been experiencing difficulty generating sustained internal economic recovery-except for China which has recently begun to slow its economy on purpose to deal with rising global speculation and internal inflation.

Japan has entered a double-dip recession. Asian periphery economies are rapidly slowing and some predicted to enter recession again. Like China, India and Brazil are slowing their economies intentionally as well, Growth in the Eurozone will slow, driven by its periphery nations' financial instability. Global competition over exports is growing more intense. More currency fights are erupting. More protectionism is likely. And all over a global export pie that will to grow more slowly in 2011 and perhaps more so in 2012.

The newly emerging Obama-Big Business focus on relying on exports and multinational corporations to lift the US recovery to a sustained path is therefore a highly risky policy shift. It will not only fail to create jobs; it will likely fail as well to provide the main source for a sustained economic recovery that has eluded Obama to date. For all who are not bankers, investors, or corporate managers and big stockholders or bond traders-we can expect more of the same for the next two years in a continuing lop-sided economic recovery.

Barack Obama master of the obvious. If your rich things are better then ever. As fro the rest of you folks maybe someday things might get better, maybe? What hogwash this speech has become. Let me grade my own performance and I'll always get an A+ as well. This klown has had 11 vacations in the last yr. alone and I thought BV$H was a slacker!

Tuesday, January 25, 2011

OBAMA TO BOOST FREE TRADE TONIGHT

Obama to Push Bogus ‘Competitiveness’ Theme in State of the Union Address

by Roger Bybee

Boosting "American competitiveness" and creating jobs through increased exports will reportedly be the key theme of President Obama's plan for economic recovery detailed in tonight's State of the Union speech.

This familiar theme, a slickly-disguised appeal to support corporate globalization, plays upon our reflexive pride in American workmanship. It is built upon President Obama's empty claim that "we can compete with anybody in the world," as he put it in a speech in my unemployment-wracked hometown of Racine, Wis., last July.

[A majority of U.S. "trade" consists of intra-firm transfers within the same corporation. For example, GE sends machinery and parts to Mexico as "exports" and then "imports" finished products. (photo by Flickr user jimw / jim Winstead)]A majority of U.S. "trade" consists of intra-firm transfers within the same corporation. For example, GE sends machinery and parts to Mexico as "exports" and then "imports" finished products. (photo by Flickr user jimw / jim Winstead)
What does that really mean? Most of the "foreign competition" that U.S. workers face actually comes from foreign subsidiaries of US-based corporations like GE, Ford, GM, Boeing, Microsoft, which operate in places like China and Mexico to exploit low-wage labor. You've got that right: A majority of U.S. "trade" consists of intra-firm transfers within the same corporation. For example, GE sends machinery and parts to Mexico as "exports" and then "imports" finished products.

Thus the entire competitiveness framework is bogus.

It merely means more NAFTA-style "free trade" agreements that already have cost millions of jobs and driven down wages. And it sets up a collision course between the White House and US labor—both the AFL-CIO and Change to Win federations— over the upcoming vote on the US-South Korea Free Trade Agreement (KORUS).

On January 19, AFL-CIO President Richard Trumka blasted the deal as a "Bush-style" agreement that fails to protect U.S. jobs from being offshored. He pledged that opposition “will be a major priority” of the AFL-CIO. In a strongly-worded statement, Change to Win denounced the motives of the pro-KORUS corporate chorus:

It’s crystal clear why the US Chamber is supporting a deal effectively shipping over 150,000 American jobs overseas: As the nation’schief cheerleader for outsourcing, the Chamber gets to go to bat for its top corporate members (the CEOs of JP Morgan Chase, Citigroup, Boeing and GE, Chamber members and outsourcers all...) and gets a jump-start on one of its key goals for 2011: tax breaks for outsourcers.

The "competiveness" framework is essentially a call to pretend that U.S. workers and U.S. corporations share the same interest in globalization. As Nobel-Prize winning economist Paul Krugman points out,

the interests of nominally “American” corporations and the interests of the nation, which were never the same, are now less aligned than ever before.

Take the case of General Electric, whose chief executive, Jeffrey Immelt, has just been appointed to head [Obama's] advisory board [on competitiveness]. ...

But with fewer than half its workers based in the United States and less than half its revenues coming from U.S. operations, G.E.’s fortunes have very little to do with U.S. prosperity.

In particular, the South Korea deal will be a cruel new blow to American workers, despite the "increased exports" hype. The Economic Policy Institute has calculated that the South Korea FTA will cost 159,000 US jobs. Public Citizen's Global Trade Watch has pointed out numerous U.S. state and local laws that will be over-ridden by the FTA, and has documented numerous ways in which the proposed deal falls far short of the United Auto Workers' standards for the agreement (which the UAW nonetheless mysteriously endorsed anyway, as noted here, here, and here.)

A 'CORPORATE PLEDGE OF ALLEGIANCE'?

The juggernaut of corporate campaign donations and their lobbyists lined up behind the Korea free trade deal cannot be stopped by labor acting inside the Washington Beltway.

“The labor movement has learned something from the last two years about jobs and investment: We can’t count on the political process here in Washington to get the job done,” declared Trumka.

In Washington, it is as though the estimated 4.9 million job
losses, 43,000 factory closings, and falling U.S. wages flowing from
free trade deals like NAFTA and China's entry into the World Trade
Organization never happened.

Equally unimportant are the opinions of the 86% of Americans who emphatically agree "that outsourcing of manufacturing to foreign countries with lower wages was a reason the U.S. economy was struggling and more people weren't being hired."

So who really matters on the trade issue?

As the New York Times reports, the South Korea deal "is playing well" with the audience that truly counts, the U.S. Chamber of Commerce. It's apparently no problem to the White House that the Chamber hauled in millions from firms engaged in offshoring US jobs and then turned around and spent tens of millions in the 2010 mid-terms to defeat Democrats and elect pro-offshoring Republicans.

However, the drive for the job-destroying KORUS could well be met with a new grassroots approach, as suggested by Trunka's comment about the limits of Washington lobbying.

At the same time, Teamsters President James Hoffa, Jr., is promoting a "Corporate Pledge of Allegiance" that US corporate CEOs will be called upon to sign. "They’ve got their $2 trillion in profits, and now we're calling upon them to create jobs here in the US," he stated on "The Ed Show."

Ideally, the Corporate Pledge strategy could be used at the local level to visit CEOs across the United States, mobilizing labor's untapped power and reaching out to the 86% of the public worried about what corporations are doing to our economy and our futures.

Stay tuned for a major battle over KORUS.

Saturday, January 22, 2011

BEACH REPORT:



JANUARY @ the Beach

It's that time of yr. down here that even half of the locals leave, if they have a money. Fla., the Carb., Calif. the wealthier among us head for their condos and homes till spring. The rest of us get to grin and bear it, shovel the snow and scrape the ice all winter, such is life in the middle of this deepening Depression. That's right, contrary to the endless blather you hear on the Corp. media the economy of this fine nation is not improving, or at least not much. As for AC, things here are also not turning any corner just yet either. The States planned take over hasn't happened yet and even if it does I don't really see how it will make all that much difference for the great majority of the local citizenry. All I see so far is a whole lot of smoke and mirrors and very little in the way of substance.


Margate's election

So far three candidates have declared for the spring elections and more are rumored to be getting ready to announce their candidacies soon. The mood of the electorate is not one of great joy these days and I wouldn't want to be an incumbent running this spring.


Wednesday, January 19, 2011

CHINA

The Real Economic Lesson China Could Teach Us

by Robert Reich

Highlighting today’s summit between Chinese President Hu Jintao and President Obama is China’s agreement to buy $45 billion of American exports. The President says this will create more American jobs. That’s not exactly right. It will create more profits for American companies but relatively few new jobs.

Nearly half of the deal is for two hundred Boeing aircraft whose parts come from all over the world. The rest involves agricultural commodities that don’t require much U.S. labor because American agribusiness is highly automated, and chemical and high-tech goods that are even less labor-intensive.

General Electric and other companies are signing up for deals with China involving energy and aviation manufacturing. But much of this will be done in China. GE’s joint venture with Aviation Industries of China, to develop new integrated avionics systems (which presumably will find their way into Boeing planes) will be based in Shanghai.

Here’s the real story. China has a national economic strategy designed to make it, and its people, the economic powerhouse of the future. They’re intent on learning as much as they can from us and then going beyond us (as they already are in solar and electric-battery technologies). They’re pouring money into basic research and education at all levels. In the last 12 years they’ve built twenty universities, each designed to be the equivalent of MIT.

Their goal is to make China Number one in power and prestige, and in high-wage jobs.

The United States doesn’t have a national economic strategy. Instead, we have global corporations that happen to be headquartered here. Their goal is to maximize profits, wherever they can make the most money. They’ll make things in America for export to China when that’s most profitable; they’ll make it in China and give the Chinese their know-how when that’s the best way to boost the bottom line. They’ll utilize research and development wherever around the world it will deliver the biggest bang for the dollar.

Meanwhile, Republicans and deficit hawks are cutting publicly-supported R&D. And cash-starved states are cutting K-12 education, and slashing the budgets of their great public research universities, such as the one I teach at.

No contest.

And no hyped-up trade deals are going to change this fundamental imbalance.

Some say all we need to do is put our currencies in better balance. But even if the Chinese upped the value of the yuan and the US (courtesy of the Fed) reduced the value of the dollar – so everything they bought from us was cheaper and everything we bought from them, far more expensive – they’d still win. We’d have more jobs than now because our exports would be more attractive in world markets, but those jobs would summon fewer goods from around the world. In other words, we’d be poorer.

Let’s get real. We’re losing ground. The U.S. labor force is now smaller than it was before the Great Recession began and most American families are worse off. December’s unemployment rate dropped to 9.4 percent from 9.8 percent but almost half the improvement was due to 260,000 people dropping out of the labor force.

Average hourly wages grew by three cents in December; weekly wages, by $1.02. And almost all the gains in income occurred at the top. The major assets of rich Americans are financial – whose values have increased as corporate profits have grown. The major assets of the middle-class asset are their homes, whose values continue to drop.

The President now says the answer is to help American business. “We can’t succeed unless American businesses succeed,” he said recently. “And I’m going to do everything I can to promote their ability to grow and prosper.”

But the prosperity of America’s big businesses has become disconnected from the prosperity of most Americans.

Republicans say the answer is to reduce the size and scope of government. But without a government that’s focused on more and better jobs, we’re left with global corporations that don’t give a damn.

China is eating our lunch. Why? It has a national economic strategy designed to create more and better jobs. We have global corporations designed to make money for shareholders.

Robert Reich is Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He has written twelve books, including The Work of Nations, Locked in the Cabinet, and his most recent book, Supercapitalism. His "Marketplace" commentaries can be found onpublicradio.com and iTunes.


One of Lenin's most famous quotes was that one day the Communists would sell us ( The Capitalists nations) the rope to hang ourselves. He was right about one thing the Communists are doing just that today, just not the Russian Communists.


Check out Andy Borowitz's funny take on Obama's meeting today with our Chinese friends. Just click on the title link.

Monday, January 17, 2011

I HAD A DREAM


I think Martin would be in Obama's face if he was alive. I don't think he'd be all that happy with much of what he's done so far.

Saturday, January 15, 2011

Beach Report:


THE DREARY WINTER OF OUR DISCONTENT

The National drama that played out all this week was about guns and violent talk and who was responsible for the perception that our political culture in this country is becoming increasingly coarse and violent. I made my call and I stand by it. People's nerves are on edge in this country as we enter the fourth year of a deep Recession / Depression for much of the population, but not for all. This then is the back drop for this situation and much to his credit President Obama did his best to try and calm the waters in one of his best speeches of the last two yrs. Obama is at his best when he can rise above the clammer and talk to our better selves. He seemed to be more Presidential this week and more focused on his job when trying to calm the nation, after the latest gunmen wreaked havoc on the landscape. (unfortunately, an increasingly occurring event.) Nature itself seemed to be in sync with this chilling scene as it snowed in 49 of the 50 States in the past week and the South and the Northeast both got hammered once again by a major snow storm.

THE WEATHER ( not the Climate)
Locally , we escaped the latest snow event with a few inches but we did get some icy rain that made driving a bit more problematic. All in all so far this winter were already deep into record territory weather wise . The Nat'l weather science establishment had called for a milder then usual winter with less snow then last winter's record snowfall, obviously they're call, so far anyway, is way off base. So goes the job of weather forecasting like economic forecasting , both are fraught with miscalculation and guessing wrapped up in numbers and computer projections. Nature though doesn't easily conform to theories or computer projections , does it?

The AC plan moves forward, kind of

The Gov.'s plan for AC got a lot of attention this week after Gov. Christie gave his first state of the State speech. To be honest I'd like to believe simply changing some agencies around , drawing some lines on a map and deregulating the Casinos would do the trick, but I don't. The devil is as they say in the details and details are hard to come by in this so called plan. Frankly, what it really looks like to me is that NJ has basically seized control of half of the city and left the administration of Mayor Langford all the rest, for what it's worth. Unfortunately, the city admin. put itself in a position to allow this to happen by earlier last yr. having to ask the State for a bail-out of sorts. It got the $$ it asked for but had to cede certain authorities and powers to the State in exchange. The bottom line in AC was the present admin. and the past administrations have basically raped and plundered the town for themselves and their friends and families and left the taxpayers holding the bill. It might have been one thing if they'd done this and the town looked like a first class resort, but they all just took care of no. 1 and allowed the town to decline into a 3rd world slum with Casinos.


The BIG ??

Can the State reverse this situation is the big question on every one's minds? We'll see, but I wouldn't bet on it. Why? Because this so called plan IMO changes nothing of any consequence. Deregulating the Casinos might sound nice to the ears of many, but it's just really standard issue GOP ideology that when you get in power the first thing you do after giving all your friends big Gov't jobs and contracts is to deregulate any BIG Enterprises that gave you lots of $$ and support on the way up. No surprise here. The problem is Christie wants to gut the regulations in such a way , they might slightly improve the Industries bottom line, but they aren't going to improve business in these places or more importantly create more jobs in them. As for the rest of the town, it's to be seen if any of the proposed changes attract more businesses back to AC, not more Casinos. I say this because as I remember last year we had endless local meetings of the various local movers and shakers and they all said we needed a more diversified non-gaming business environment , but they left out how this goal was to be achieved. This plan doesn't seem to be all that focused on making things better for small business in AC and environs, as was suggested by all these groups, so given what I've seen so far I have to be a Missourian and wait till they "show me", cause right now I don't see how this plan is going to revive what is at this point in it's history, a decaying possibly dying resort.

Beach Reforms?

Oh and least I forget, absolutely NOTHING was mentioned by the Gov. nor anyone else as concerns the fix needed on the AC beaches ( radically lowering the Project dune heights.) The only place any mention of this much needed improvement was broached, was in Pinky's column this week in the Press and Pinky doesn't work for the State. So we have one of the most important issues in any reform and revitalization effort for AC still hanging out there with no plan and no resolution.



Friday, January 14, 2011

SCIENCE FRI: - CLIMATE CHANGE ON THE FAST TRACK!

Climate Change Could Happen Much Faster Than Previously Thought

Humans are in danger of making large parts of the Earth uninhabitable for thousands of years because of man made climate change, according to new evidence based on geological records.

by Louise Gray

The US study predicted that if society continues burning fossil fuels at the current rate, atmospheric levels of carbon dioxide could rise from the current level of 390 parts per million (ppm) to 1,000 by the end of this century.

["If we don't start seriously working toward a reduction of carbon emissions, we are putting our planet on a trajectory that the human species has never experienced," said Dr. Jeffrey Kiehl, of the National Center for Atmospheric Research. (photo by Flickr user thebadastronomer)]"If we don't start seriously working toward a reduction of carbon emissions, we are putting our planet on a trajectory that the human species has never experienced," said Dr. Jeffrey Kiehl, of the National Center for Atmospheric Research. (photo by Flickr user thebadastronomer)
The last time the world had such high levels of carbon dioxide temperatures were on average 29F(16C) above pre-industrial levels. Evidence has been found of crocodiles and palm trees at the Poles and only small mammals were able to survive.

Jeffrey Kiehl, of the National Center for Atmospheric Research (NCAR), who carried out the study, said the Earth could return to such temperatures over hundreds or even thousands of years.

But unlike last time, when it happened over millions of years, temperatures will rise too fast for species to adapt and change.

In the short term he said temperatures could rise by more than 10.8F (6C) by the end of the century, which will also wipe out species.

"This is happening at such a rate how will species, including humans, respond? The implications for the biosphere is of great concern."

Dr Kiehl not only looked at geological records but also computer models to predict what will happen if carbon dioxide levels rise at such a rate.

He included 'feed back factors', such as melting sea ice, methane released from thawing permafrost and Amazon die-back.

This showed that temperatures will increase much faster than previously thought as a result of rising carbon dioxide.

"If we don't start seriously working toward a reduction of carbon emissions, we are putting our planet on a trajectory that the human species has never experienced," he said. "We will have committed human civilization to living in a different world for multiple generations."

Dr Kiehl hit back at critics who claim that acting on climate change by reducing the use of fossil fuels will upset the world order.

"A truly conservative position is to conserve what we have, to not radically change things and if we do not want to radically change the environment then the conservative approach is to conserve the Earth as the human species has known it ever since we have been around on this planet."