David Callahan had a smart column in The American Prospect about natural and economic disasters, and why they must be met with the same level of urgency.
If most of us take for granted that we should be there for our fellow citizens during natural disasters, using the tool of government, why is it so controversial that we should also lend a helping hand during man-made economic disasters? Why are unemployment benefits under attack in numerous states, even as millions remain jobless through no fault of their own? Why is an idea as obvious as a direct government jobs program off the table in Washington?
The answer is no great mystery: Critics of a government safety net tend to think that individuals will solve their own economic problems if government isn’t there to coddle them—and also that private charity would do the job of helping people, and do it better, if government weren’t in the picture.
Both assumptions are wrong.
Americans donate to the Red Cross after natural disasters, but they don’t believe that charity alone can solve the problem. There’s no reason to differ from that when faced with a national economic disaster, wider in scope than a localized storm or tornado. And nobody thinks the people of Staten Island can simply pull themselves up by their bootstraps. Why the millions of long-term unemployed, facing a job market with four seekers for every opening?
This is why progressives are right to be concerned about a grand bargain. Despite the relatively strong jobs report, we still have a mass unemployment crisis mitigated only by a hefty amount of government spending. At the current rate of job growth, we would not return to full employment until the next decade. And yet lawmakers in Washington are obsessed with snapping back fiscal accommodation to appease actuarial projections 30 years down the road. They even know this would cause a near-term recession, yet they insist on deficit reduction to replace the “fiscal cliff,” which itself is nothing more than deficit reduction.
A first-strike post-election action on the national debt is simply a fake fight – like responding to a natural disaster on the Atlantic Coast by building an evacuation center in Wyoming.
It’s hard not to think of this ad when listening to the agenda being pushed by the Campaign to Fix the Debt. This is yet another project supported by Wall Street investment banker Peter Peterson. For the last two decades Peterson has used his fortune to bankroll a number of organizations that were ostensibly pushing fiscal responsibility, but always had the same punch line: cut Social Security and Medicare [...]
Of course the real story of the deficit is very simple. We have large deficits at present because the collapse of the housing bubble crashed the economy. That’s it [...]
There is a longer-term deficit problem but this is entirely a problem due to the projected explosion of healthcare costs. Interestingly, the data doesn’t seem to be cooperating with this story either. Healthcare spending grew at just a 0.5 percent annual rate in the most recent quarter. Its growth rate has been far below projections since the start of the downturn.
If healthcare costs continue anywhere near their recent path, our deficit fighters will lose their long-term deficit crisis story. They will be left pushing cuts for Social Security and Medicare that lack any basis in budget realities.
And it won’t stop them. Because if you invent a big storm, you just need enough meteorologists to point to it on television to convince the public to fight it.




7 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
“Why is an idea as obvious as a direct government jobs program off the table in Washington?
The answer is no great mystery: Critics of a government safety net tend to think that individuals will solve their own economic problems if government isn’t there to coddle them—and also that private charity would do the job of helping people, and do it better, if government weren’t in the picture.”
DDay, Are you kidding? They who criticize the government safey net are not talking about beneficial effects, they are converts to the racist meme that became a mantra before Ronald Reagan: Fat, chiseling, welfare b****es, cashing six welfare checks, while having more kids to raise their benefits so they can keep driving their Cadillac cars.
It’s rediculous, but it has a riveting effect on white American working men. It was once quite out in the open, now it’s just an undercurrent, but it is alive and well. Actual facts have no effect on this fixation.
Jerry White from the Socialist’s party has a more direct, gritty take on the greed and fraud connecting all of the things of which you speak:
Here.
I guess it all comes back to Wall Street. They stand to make a great deal of money as long as they can reduce their own taxes and insist we give up essential social programs and benefits.
Someone ought to write a story around the crane dangling off the new Galt’s Gulch skyscraper being built at One 57th Avenue in NYC. A powerful symbol of wealth at a time when the rest of the city is crumbling. The threat to ordinary people below who will never be allowed to set foot inside this new Taj Mahal , this new ode to excessive wealth and privilege.
And contrast that with the many firefighters from NYC who settled in Staten Island to live but worked in great danger all over NYC protecting people from being killed in burning buildings. Firefighters don’t live that long either, all that toxic smoke, stress. And now look at how long it is taking for anyone to help them, the community helpers, now that they are down and out, because Sandy wiped their homes off Staten Island.
How quickly the media eyeball snaps back and away to the nonstop media ‘events’, slogging toward reproducing ? stability in the social order ?
The problem is many of us don’t learn from history. The Great Depression revealed the depth of suffering that can be inflicted on us, when the private sector is allowed to exploit a poorly regulated system, and the urgency of adequate response by government with measures to restore trust and sustain the basic needs of all those who are at risk.
The recurrence of Depression that we have experienced, and the failure of government to prosecute the perpetrators of financial fraud, shows the absolute corruption we have within the system. However, this time the abject denial by the political class (both right and left) of the urgency of meeting human needs and addressing grievances such as unemployment and home foreclosures, is unprecedented. It indicates that government has been captured by the moneyed interests and divorced from the interests of the people.
The gradual recovery that appears to be happening, is nowhere near what could have been achieved with the appropriate actions by government, similar to what FDR demanded and achieved. In fact, this is really a non-recovery failing to restore the standard of living that most people had previously earned, and ushering in an era of austerity to further exploit and deprive us.
This election, regardless of how it turns out, will not change the troubling trends toward the extremes of military, financial, and environmental destructiveness that we have seen and are predictable. Democrats have generally yielded to these imperatives of the elites while Republicans advocate far more damaging measures be taken.
The notion that political activism might reverse this trend has been defeated. The forces arrayed against any form of protest are frightening to all but those with nothing to lose. One can become cynical to the point of wanting the Republicans to win, thus to hasten the catastrophic fall of this corrupt empire. It almost seems inevitable that collapse will occur, so why not get it over with?
It seems few people care to challenge the status quo, even when they’ve been greatly diminished by it. They ignore the lessons of history and become victims of the current cycle of criminal conspiracy that is gripping humanity and threatening our extinction.
Did you look at the statistic for the employment-population ratio?
http://data.bls.gov/timeseries/LNS12300000
Omigod we’re up one tick this month, to 58.8%! There’s a recovery on!
So, yeah, not so much.
You mean like putting an end to the capitalist system? I’d say it’s urgent.
More credit will not save us. The massive expansion of credit the last 30 years is the mother of all our problems, both in the political economy and culture. Producing massive consumption of energy and stuff and precious little for the commons.
I apologize for the length of this quote
“After beginning 1990 at $12.8 TN, Total System Marketable Debt ended June 2012 at $55.0 TN. And Washington politicians and central bankers are doing everything they can to sustain the Credit boom and avert the downside of an historic Credit cycle. Similar efforts are afoot globally. In Europe, we are witnessing the dire consequences unleashed when the markets resist buying suspect Credit instruments. And, importantly, when the Credit spigot is inevitably tightened, economic revelations soon follow. Suddenly, economic structure matters. Is the system generally robust or fragile? And if the economy proves fragile, the systemic predicament will soon be compounded by huge debt and confidence issues.
From a Credit Bubble and economic structure perspective, Sandy and climate change are very relevant. The prolonged Credit boom has had a particularly profound effect on the North East. From beachfront homes and mansions, to automobiles, marinas, boats, and recreation and related businesses, the boom greatly increased the potential for catastrophic storm losses. This is in addition to the inflated economy-wide cost structure that will see repair and rebuilding costs profoundly higher than would have been the case in the past.
I would further argue that exorbitant costs are an important reason why more was not done to protect against a major Atlantic storm. The piper will now require payment. Our economy’s entire resource allocation system has been so distorted for too long. Finance flowed way too easily into home building, recreation and consumption. Our nation’s infrastructure has been badly underfinanced and neglected. This was made sadly clear with Katrina and again with Sandy. Our nation’s power grid is a bad joke.
We’re today in the midst of the manic financial Bubble phase. Especially here in the U.S., the markets will finance virtually anything. There’s hardly a junk bond the market doesn’t love. CDOs are back. Relatively higher-yielding municipal debt induces salivation. There are, then, no worries regarding the ability to finance Sandy recovery and rebuilding efforts. Costs really don’t matter. Wealth destruction is basically irrelevant. If it’s “money” that’s needed, well, we’ve got the Bernanke Fed. And why not just rebuild on the water’s edge and buy cheap federal flood insurance. “Broken windows,” broken subways, broken transformers, broken communication hubs, and broken neighborhoods are sure to incite a borrowing and spending boom. Dr. Bernanke’s “mopping up” strategy in action.
Yet caution is in order. There will be more storms, some weather-related. And there will come a post-Bubble environment and a profoundly altered backdrop. Previous Credit excesses, suspect debt and market revulsion will make it profoundly more difficult to finance all types of spending. Deeply entrenched structural shortcomings will have surfaced conspicuously. And, importantly, I would expect previous consumption-based borrowing and spending excesses to restrict the system’s ability to finance needed investment and infrastructure projects. Along with economic structure, market confidence really matters”
http://www.prudentbear.com/index.php/creditbubblebulletinview?art_id=10725
“I apologize for the length of this quote ”
Can’t be sure where the quote ends. Does it matter?