Obama's Real Problem

In the wake of the federal shutdown debacle, the GOP is widely despised and in internally divided. Yet the Obama administration continues to pursue a "Grand Bargain" with the congressional GOP in which it will trade cuts in Social Security for some kind of tax increase. The big lie here is that Social Security benefits are not the cause of the Federal deficit. It's the Bush tax cuts which are the root cause of the deficit, which in real terms is actually decreasing anyway. It seems that Obama is obsessed with going down in history as "The Great Conciliator" that he is going to throw away his last chance to make the historic change he promised. It seems that the Democrats will do in 2014 what they did in 2010: rescue defeat from the jaws of victory.

Something Has Got To Give

Even thought Congress has passed another deal to re-open the government it only lasts for 90 days. When we consider that the GOP, not just the Tea baggers, are the kind of people that never learn anything and never forget anything, we could be facing the same rigmarole in January or February. How long can this continue? One possibility may come from the business interests who are funding the Tea Party. These interests want the low-tax low-wage regime to continue, but do they really want to continue backing fanatics, like the Tea Baggers, who are willing to wreck the economy? Maybe the business interests need to think about that.

Recessionism Defined

Perhaps the best definition of recessionist economics was written by Samuel Gompers President of the AFL 1886-1924. Writing in the January 1919 issue of "The American Federationist" Gompers summed up the recessionist position:

"Then too there is ever present that ill-advised and time refuted old school of political economists who always prescribe their dogma of reduction in wages for industrial ills whenever there arises any great question of industry, trade, commerce or finance. Their ever ready remedy for industrial stagnation is to cut wages and increase the hours of toil. With their philosophy or sophistry they would forestall or meet a condition of shrinkage in the markets of industry by still further reducing wages and lengthening the hours of work. To these false prophets and malpractitioners of economics, the law of supply and demand is the Alpha and Omega of their concept of political economy and sociology. Obviously it has never occurred to these men that by reducing the consuming power of the great masses and causing extended unemployment, privation and suffering of the people, industrial stagnation would not be abated or lessened, but on the contrary would be made more acute." (57)

Still true today as it was then.

The Dogma of Recessionism

The pet economic theory held by GOPers here in the states and by German bankers in Europe has a new label; "expansionary fiscal contraction." It is the theory that cutting public spending is supposed to be good for the economy. This theory, lets call it EFC for short, has come under attack by many economists. The economic data indicates that EFC actually causes economic contraction. In this country EFC has caused widespread unemployment and weak economic growth. In Europe EFC is pushing the poorer countries into economic collapse and possibly political and social breakdown. It would be fair to say that EFC is to economics what colloidal silver is to medicine: a dangerous piece of quackery.

Irresponsible Government Will Be the End of U.S.

It's odd how people who are always preaching about "personal responsibility" will hide behind every excuse in order to avoid responsibility for their own actions. The federal government is just hours away from another shutdown. House GOPers are doing this in an ultimately futile attempt to shutdown what they call "Obamacare." In doing so they are risking an economic disaster of unforeseeable consequence. The only good sign is the stock market is falling. Maybe the big financial interests who control the GOP will call the Repub leadership and tell them to stop their foolishness. The disadvantage that President Obama and other leaders have is that they try to act in the interests of all the people. The Repubs on the other hand only act in the interests of those who vote for them and the special interests who finance their careers. The question is, which tendency will come out on top.

The Lunatics Are Running the Asylum

House Repubs are trying to shut down the Federal Government again, this time it's an attempt to defund what they call "Obamacare." Meanwhile Ted Cruz, who actually boasts of his resemblance to Joe McCarthy, is trying to launch his own "filibuster" of the budget process. Is it possible that the Repubs don't know what they're doing? A government default would wreck the world economy and they're willing to do that just to make a point. The GOP has pandered to the lunatic right to such an extent that they're now in a position to destroy the country.

Confronting the Big Box Future

Recently an item appeared in Huffington Post title "Why Generation Y Yuppies are Unhappy" defining generation y as those born between the late seventies and mid nineties. The gist of the article is the young people in that age group have unrealistic expectations about their career prospects and thus are doomed to unhappiness. It's a complicated issue and one that goes back beyoned generation y. In fact, by the late eighties young people were being advised "Don't look for a career, look for a job." Things have only gotten worse since then with the term "career" becoming obsolete. Forget about working for the same company all your life you probably won't work in the same field. It's no longer uncommon to change jobs several times in one year.

The problem goes back to the 1980's when Americans began to confuse optimism with fecklessness. The generation that came of age were convinced they were going to get rich by playing the stock market or flipping real estate. Most of them didn't of course; everybody can't get rich just as everybody can't be a movie star. They also filled their kids with all kinds of "follow your bliss" malarkey that left unprepared for the harsh truths of the real world.

I'm really bothered when people say "anything is possible" because in fact lots of things are impossible; squaring the circle for one or building a perpetual motion machine. A generation that grew up hearing nonsense like "find your passion" "follow your dreams" are now confronting a reality in which their best prosepect is working at a big box store. Yes, that's right, you've been lied to but the failure of the earlier generations has become a recurring theme in the modern world. Might as well smell the coffee.