I use the term Austerian rather than Austrian on purpose because that's its economic premise...it embraces austerity. Austerity at the right time is a good strategy to employ. However, austerity is not a good economic strategy in times of recession, depression or deflation.
Do you starve your body of nutrition when you’re anemic?
If you believe in “austerian economics” (which a majority of Republicans, a smattering of Democrats, and almost all Teabaggers do) you are advocating consciously electing to go on an all out diet when your body is the weakest.
We have an anemic economy. Consumption is suffering. There is languishing demand for goods. We need strength. Our corporations have decided to sacrifice increasing their payrolls and hoard a mountain of cash they have on hand. Rather than use those cash assets to stimulate the economy creating a rash of new customers and tax payers they've decided to hoard that cash for outlandish salaries and bonuses for a fraction of a percent of their executive staffs...the very top executives in their companies. So the only game in town is the United State of America. Yes...we the people. We have the capability to create demand, which can get our workers re-employed and make taxpayers out of those currently needing the assistance of social safety nets.
If our corporations were really patriotic...they'd use all that liquidity they possess to hire new workers. They'd shave upper level executive salaries in favor of creating more workers from the middle class ranks. Remember...it's not the middle class making between $50,000 to $250,000 per year that are causing the problem...those workers are spending those wages because they have to. It's the executives earning $10 million to a billion dollars per year that are bottlenecking economic growth. Those earners save on average about 90% or MORE of their earnings. They’re not creating demand which would result in hiring workers, instead they’re pumping those earnings into equity stocks, and bonds...and in some very sad cases sending those resources oversees to help foreign competitors.
When you're sick and anemic is no time to start an austerity diet. That's the time you need to take in as much nutrition as you can no matter what the source...borrowed or otherwise. When you get well...that's the time to lose weight.
We should have been on austerity diet in 2001 when rather than use the accumulation of a budget surplus to get our fiscal house in good shape the Bush Administration chose another path. We squandered the surplus on tax cuts for top 2% of earners that neither needed nor wanted tax relief. We squandered the surplus on a Medicare Act that lavished un-needed subsidies on health insurance companies who added no value to the health system and have a 30% administration expense (compared to 2% for Medicare, Medicaid, and the VA). Then finally, we squandered the surplus on two wars, one justified (Afghanistan) and one not (Iraq). That's where we put on all that weight and made ourselves sick. Now is the time to get better. Take on the nutrition our economy needs that will get people back to work. Once we're well we need to look at that diet seriously once again.
When we get around to that diet we're going to need protein to burn the fat and we're going to need to cut back on the carbohydrates to lose the fat. That means that we're going to need to make cuts that make sense and consider taxes that are fair. It means that we'll probably need to compromise on social programs, entitlements, defense spending and tax increases to those who can afford them.
Sunday, October 31, 2010
Wednesday, October 13, 2010
WHAT IF THE POLLSTERS HAVE MISJUDGED THE VOTERS
What if the pollsters have misjudged the “enthusiasm” factor? It may be very possible. The polling firms interview thousands of voters. They discard more of the interviews than they actually use. They do so in order to try to compensate for who they think will show up to vote and who they think will not show up to vote. If they misjudge the “enthusiasm factor” their polling data will skew the results. There is evidence that this may be what is going on this year. Several races have swung wildly from one result to another from poll to poll. Because of this, an observer here and there has begun to wonder what might be going on.
I’m writing this now…because I think I might be right and better to predict before than after. If I’m wrong…then I’ll be the goat.
I suspect that more progressives may turn out than previously expected. There is also a possibility that some Republicans being counted on will not like their choice and consequently sit out this election. Republicans have expressed remorse in Nevada, Delaware and Kentucky. I think these creepy “extreme” rightwingers, identified with the “Tea Party,” are driving progressive numbers up and “establishment” Republican numbers down. I have heard from Republicans, within my own family, who have said these newly branded “Teabaggers” scare them. That’s good because they scare the rest of us too.
I have long suspected that some of the more moderate “establishment” Republicans, in order to save their party, have let these extreme elements of the right have enough rope to hang themselves. I think they have let them…even encouraged them, to invest all their money in what they hope will be a losing cause. If they do then I say congratulations to them. Because even though I have a clearly liberal bias I believe there is a legitimate roll for conservative thinking. And, I really believe when conservatives and liberals are talking to each other, and not past each other, we’re all the better for it.
Most people do not realize that Franklin Roosevelt was a budget hawk when he first came to office. He was opposed to the creation of federal deposit insurance because he thought weaker banks would take advantage of stronger ones. But, Roosevelt was convinced by learned men who convinced him with intellectual and reasonable arguments that the lack of demand would not be improved if the government withdrew from the commercial market. They convinced him that if he funneled money and resources into the hands of workers they would spend the money they got and create demand. The argument for deposit insurance convinced him that if depositors felt there deposits were safe they wouldn’t withdraw them from the banks, and that if the banks had the deposits they would loan the money out in the community creating additional demand.
Let’s hope the pollsters are in error. Let’s hope the progressives turn out in larger number than are expected. I think that’s what’s going to happen…let’s see if I’m right. We’ll all be better the sooner the “Tea Party” principles are put to rest…six feet under!
I’m writing this now…because I think I might be right and better to predict before than after. If I’m wrong…then I’ll be the goat.
I suspect that more progressives may turn out than previously expected. There is also a possibility that some Republicans being counted on will not like their choice and consequently sit out this election. Republicans have expressed remorse in Nevada, Delaware and Kentucky. I think these creepy “extreme” rightwingers, identified with the “Tea Party,” are driving progressive numbers up and “establishment” Republican numbers down. I have heard from Republicans, within my own family, who have said these newly branded “Teabaggers” scare them. That’s good because they scare the rest of us too.
I have long suspected that some of the more moderate “establishment” Republicans, in order to save their party, have let these extreme elements of the right have enough rope to hang themselves. I think they have let them…even encouraged them, to invest all their money in what they hope will be a losing cause. If they do then I say congratulations to them. Because even though I have a clearly liberal bias I believe there is a legitimate roll for conservative thinking. And, I really believe when conservatives and liberals are talking to each other, and not past each other, we’re all the better for it.
Most people do not realize that Franklin Roosevelt was a budget hawk when he first came to office. He was opposed to the creation of federal deposit insurance because he thought weaker banks would take advantage of stronger ones. But, Roosevelt was convinced by learned men who convinced him with intellectual and reasonable arguments that the lack of demand would not be improved if the government withdrew from the commercial market. They convinced him that if he funneled money and resources into the hands of workers they would spend the money they got and create demand. The argument for deposit insurance convinced him that if depositors felt there deposits were safe they wouldn’t withdraw them from the banks, and that if the banks had the deposits they would loan the money out in the community creating additional demand.
Let’s hope the pollsters are in error. Let’s hope the progressives turn out in larger number than are expected. I think that’s what’s going to happen…let’s see if I’m right. We’ll all be better the sooner the “Tea Party” principles are put to rest…six feet under!
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