This is the first in a lengthy blog series that will evaluate the US Government's record on Real Fiscal Responsibility, Administration period by Administration period, since the Administration of Jimmy Carter in 1977. In evaluating the US Government's record, it’s important to state clearly that I will be evaluating more than just each Administration and its activities.
The record of fiscal responsibility is not the product of the Executive Branch alone. It is the outcome of the interaction of the Executive with the two Houses of Congress and the Federal Reserve System, even on occasion the interaction of one or more of these with the Supreme Court. All bear joint, though not equal responsibility for the record of Government fiscal responsibility or fiscal irresponsibility, as the case may be, during each Administration period. Read more about Real Fiscal Responsibility 1: Preliminaries
This pilot project and the radio/video shows it will produce and place on the web is for everyone tired of hearing economic commentary from those who got everything wrong. For decades, the doctrine of "Fiscal Responsibility" interpreted as long-term deficit reduction and Government austerity has had a secure place in American politics. This doctrine is the economic equivalent of the medieval notion that patients must be bled to cure them of disease. And this truth is reflected in the economic history of the United States at least since 1976, when we first began to practice ideology-based austerity in its modern form by planning for deficit reduction and balanced budgets in order to decrease the debt-to-GDP ratio.
Yes, there were short periods of expansive GDP growth during the Reagan and Clinton Administrations, but when one compares job creation and growth rates across the decades, one can see from Table One, that new job creation and GDP growth during the 70s, 80s, 90s, and the first 10 years of this century don't compare to the 40s, 50s, and 60s of the 20th century. By comparison we've been experiencing a stagnant economy in varying degrees for more than 40 years now. Read more about The Real Fiscal Responsibility Today Pilot Project
WeAreChange.org: European Anti-Fed Movement like "merger between OWS and Tea Party"; "What about Your City?"
The anti-Fed, anti-mainstream media, and anti-NAT0-wars Movement* that began in Berlin, had a big, centralized demonstration on July 19, that drew over 5,000 participants from all over Germany (and doubtless some other countries). They normally meet in over 123 different cities, on Mondays, in public areas.
Luke Rudkowski addressed this gathering, in Berlin is Inspiring the Next Revolution!. Read more about WeAreChange.org: European Anti-Fed Movement like "merger between OWS and Tea Party"; "What about Your City?"
Populist, Anti Fed Movement Up 23% in less than 1 month - "If you want to change something ... you have to go on the streets"
Luke Rudkowki of WeAreChange.org interviews Lars Maehrholz, whose populist, anti-Fed movement is still growing rapidly. See Game Changing Major End The Fed Rally Planned in Europe Read more about Populist, Anti Fed Movement Up 23% in less than 1 month - "If you want to change something ... you have to go on the streets"
Matt Stoller believes that the recent pre-publication release of a study by Martin Gilens and Benjamin I. Page doesn't support the idea that the United States is an oligarchy yet. He says:
A lot of people are misreading this Princeton study on the political influence of the wealthy and business groups versus ordinary citizens. The study does not say that the US is an oligarchy, wherein the wealthy control politics with an iron fist. If it were, then things like Social Security, Medicare, food stamps, veterans programs, housing finance programs, etc wouldn’t exist.
What the study actually says is that American voters are disorganized and their individualized preferences don’t matter unless voters group themselves into mass membership organizations. Then, if people belong to mass membership organizations, their preferences do matter, but less so than business groups and the wealthy.
Well, it's true that Gilens and Page never say that United States is an oligarchy, and perhaps it's also true that they don't believe it. But they do say this: Read more about Are We An Oligarchy Yet?
The New York Times and Dave Leonhardt's Upshot section made a big splash a few days ago by reporting on a study showing that the Canadian middle class had caught the US middle class in median income and likely surpassed it since. The study is based on an effort to measure median income per capita after taxes, and its results are presented as something truly significant.
However, I think the study is biased in that in median income per capita after taxes, it selected the wrong measure. What is needed is a measure of income or affluence that takes account of the value of cross-national variations in Government benefits delivered to the middle classes. Since the United States has lower taxes than most comparable nations, but delivers much less in safety net and entitlement benefits, it's pretty clear that the measure used in the study reported on by The Times overestimates the real median income of the US middle class in comparison with the middle classes of other comparable nations and provides a misleading impression of the relative affluence of the American middle class. Read more about Did Canada's Middle Class Just Get More Affluent Than the US's, or Did that Happen Long Ago?
Dan Roberts in “Wall Street Deregulation Pushed by Clinton Advisers, Documents Reveal” provides some compelling revelations from 7000 pages of documents withheld from public scrutiny by the Presidential Records Act for twelve years and now destined for the Clinton Library research room.
America’s banking crisis of 2007 was set up by dramatic deregulation during the Clinton presidency in the late 1990s. Read more about Clinton Advisers Who Set Up Deregulation/US Economic Crash
Recently, I've been writing about oligarchs advocating for entitlement cuts and austerity. I've discussed attacks on entitlement benefits for the elderly from Abby Huntsman (of MSNBC's The Cycle) and Catherine Rampell (a Washington Post columnist), both the children of well-off individuals. These posts have come in the context of the English language release of Thomas Piketty's Capital in the Twenty-First Century, and the more recent pre-publication release of a study by Martin Gilens and Benjamin I. Page using quantitative methods and empirical data to explore the question of whether the US is an oligarchy or a majoritarian democracy. They conclude:
”What do our findings say about democracy in America? They certainly constitute troubling news for advocates of “populistic” democracy, who want governments to respond primarily or exclusively to the policy preferences of their citizens. In the United States, our findings indicate, the majority does not rule -- at least not in the causal sense of actually determining policy outcomes. When a majority of citizens disagrees with economic elites and/or with organized interests, they generally lose. Moreover, because of the strong status quo bias built into the U.S. political system, even when fairly large majorities of Americans favor policy change, they generally do not get it.”
With this as a backdrop, today I want to de-construct a recent statement by Michael A. Peterson, President and COO, of one of the centers of American oligarchy, the Peter G. Peterson Foundation (PGPF), and the son of the multi-billionaire Peter G. Peterson, commenting on the CBO's Report earlier this month, on its updated budget projections for 2014 - 2024. Read more about Peterson/CBO Beat for Austerity Goes On!
In my last post, I took issue with a recent column by Catherine Rampell, who tries to make the case that seniors haven't paid for their Social Security and Medicare because they “generally receive” more in benefits out of these programs than they pay into them. Rampell relies on an Urban Institute study to make her case. Since that post, she's offered another that replies to some of the questions raised by commenters on her earlier effort. I'll reply to that new post shortly, but first I want to present key points emerging from my analysis of Federal monetary operations in my reply to her earlier post. See that post for the full argument.
First, once Congress mandates spending, there is no way that the Treasury can be forced into insolvency or an inability to pay its obligations as long as it is willing to make use of all the ways it can cause the Fed to create reserve credits in Treasury spending accounts which can then be used for its reserve keystroking into private sector account activities that today represent most of the reality of Federal spending. Read more about More Misdirection from Rampell in the Service of Generational War
Some of the favored children of the economic elite who have a public presence, work hard in their writing and speaking to divert attention from inequality and oligarchy issues by raising the issue of competition between seniors and millennials for “scarce” Federal funds. That's understandable. If millennials develop full consciousness of who, exactly, has been flushing their prospects for a decent life down the toilet, their anger and activism might bring down the system of wealth and economic and social privilege that benefits both their families and the favored themselves in the new America of oligarchy and plutocracy.
Here and here, I evaluated Abby Huntsman's arguments for entitlement “reform,” and, of course, Pete Peterson's son, Michael fights a continuing generational war against seniors in pushing the austerian line of the Peterson Foundation. Now comes Catherine Rampell, who, in a recent column, sets forth the position that seniors haven't paid for their Social Security and Medicare because they “generally receive” more in benefits out of these programs than they pay into them.
I'll reply to all of the main points in Rampell's argument, by quoting liberally and then replying to the points she makes in each quote. She says: Read more about Misdirection: Rampell Views Entitlements Through the Generational War Lens
I’m generally not one to brag or tell others “I told you so” but after reading more and more articles by other bloggers, writers, pundits and commentators over the past 5 years, I should claim to be some sort of clairvoyant.
More and more people have felt over the past 10 years that the U.S. was not just becoming more oligarchical, but was already an outright Oligarchy. My pessimistic view of the nation was finally vindicated.
“Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens” was a report released this year that used extensive policy data collected between 1981 and 2002 to determine the oligarchic state of the US political system. The study stated “…the preferences of the average American appear to have only a minuscule, near-zero, statistically non-significant impact upon public policy.” Read more about VICTORY LAP – I TOLD YOU SO
Paul Craig Roberts, former U.S. Treasury Secretary bottom-lines the present economic doom of America’s working -- and non-working -- class in "Another Fraudulent Jobs Report." He writes:
Americans live in a matrix of total lies.
What can Americans do? Elections are pointless.