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Showing posts with label U.S. economy. Show all posts
Showing posts with label U.S. economy. Show all posts

Sunday, November 13, 2011

Die erste achtundvierzig Stunden...

Occupy Portland is over.BERJAYAAn ad-hoc force of police from several places including Portland Bureau today cleared the two downtown parks that Occupy had occupied. The protesters have regathered in several other downtown sites to "discuss" their next move, but in my opinion this is the end for Occupy.

For more than a week the local pols, newspapers, and television outlets have been voicing increasing impatience with Occupy and, truthfully, it seems hard to imagine how the "protests" would have done anything more than they have which beyond generating a sort of unfocused unease amongst the chattering classes has been no more than an irritant under the silken drawers of the rich and powerful.

It's been more than forty years since the mild insurrections of the U.S. Civil Rights era, half a century since the "nonviolent" protests of the Indian National Congress forced Britain's release of her Indian colony, a full century since the end of the violent strikes and near-rebellions that empowered the American labor unions.BERJAYAIn the interim we have forgotten that "peaceful" protest is exactly as effective as "peacefully" resisting a savage beating unless you have your "peaceful" beating carefully planned to maximize your PR value - and it helps if your opponents are frigging morons, or politically and financially exhausted.

The civil rights marchers won because the Southern bigots were stupid enough to physically attack well-dressed men and women on national TV and newspapers. The Indian factions won partially because BG Dyer was a fucking bloodyminded idiot and partially because the Empire exhausted itself fighting two world wars. You could argue that the labor unions didn't actually win, but rather reached a sort of armed truce that lasted until the plutocrats shat the bed in 1929 and helped elect a labor-friendly administration.

Occupy had none of these to help it. Instead, it faced a massively corrupted and paid-for military-industrial-congressional-financial complex that is doing quite well under the present system. Any hopes of an FDR moment disappeared early in 2009 when it became obvious at least to me that the current Democratic administration had no interest in even trying cocking a snook at the banksters. The New New Deal this wasn't.

And the Occupiers forgot the other lesson of those earlier protest movements; that the public could give a shit about your politeness. The relative discipline of the Occupiers ended up looking like meekness, and regardless of what the Good Book says the meek won't inherit jack shit without a pair of brass balls, friendly press, and a sackful of bricks and cobblestones hidden away in case all the politeness doesn't work. And Occupy Portland had none of those things.

And ask the Paris Communards how even WITH those things, if the government is willing to ignore you when you're weak - and kill or arrest when you're strong - you will lose.BERJAYASo the banksters have proved that a camel can leap laughingly through the eye of a needle. They have bought all the government they need, they or their lickspittle brownnosers own the media conglomerates, and the U.S. public is about evenly divided into thirds, and while one third is ignorant and indifferent one of the other two-thirds is actively hostile, either hoping to curry favor with the plutocracy or, tragically, mistaking the random helium in their guts for wings; by the time they fart away their good luck they will be plummeting too rapidly to have the time for regrets.

Occupy might have had more hope if the public was more intelligent and their enemies less powerful. In the first couple of days, or weeks...

But no matter. That hope is gone forever.

In March, 1935 the tiny German Army marched into the Rhineland, the first of Hitler's Thirties gambles. And it was more than a gamble; Hitler and his commanders knew how tiny their little force was. As hapless as the French Army of the Thirties was, and it was a fairly ginormous clusterfuck, a whiff of grapeshot in the old Napoleonic style would have seen the Heer packing across the Rhine and, probably, the end of the Hitler Era two years after it began.

But the French were too meek to make that move, and Hitler's success propelled him all the way to the wreck of the European world ten years later.

And here again, the first couple of days - "Die erste achtundvierzig Stunden" is how Hitler phrased it - were key.BERJAYAOnce the larger public failed to rise in the first couple of days the Occupiers proved to have no strategy to force the issue or force their enemies to submit and their attempt to tame the bulls and bears is done.

Update 11/14: Upon further review, I had a couple of thoughts.

The antiwar protests of the Sixties have something a answer for in what they've done to the U.S. left. The protests were far less effective at "ending" the war than they seemed at the time (and have been mythologized since) - Nixon's concerns for the economy and the public's indifference to the Vietnamese were more crucial. But the result is that somehow the notion that merely marching around and sitting-in would be enough to effect political change and the record of those actions since then have proved this to be the nonsense it is.

The civil rights protestors, the INC activists, the labor movement radicals all had a collection of things that the post-'72 U.S. protests haven't:

1. An actual strategy that involved an entire range of acts, from pure theatre to violent protest, and some notion of how and where these would be applied. If OWS had anything other than "be there" I haven't seen it (mind you, the combination of vast public indifference and active media ignorance/hostility made it difficult to see how they could have done anything else effectively). And to orchestrate this these groups also had

2. An actual structured leadership - often fractious, even infighting, but the leaders were there actively planning the attacks on their opponents. The OWS seems to suffer from the goofy fuzzy-logic cloud-leadership that is to my mind the very WORST hangover of the Sixties protests. People like Lewis and Nehru and MLK were in many ways very unlikeable, manipulative, cunning sons-of-bitches. The OWS people seem to have absorbed the wrong lesson, which is that to get to a beneficent end you need to be a beneficent person. Couldn't be wronger. Many, perhaps most, of the people who have done "good" things for the mass of humanity have themselves been real bastards. You have to break a lot of eggs sometimes to make a good omlette...

Sorry that I'm such a little ray of sunshine today. But, as Matt Taibbi points out, the things that OWS is pointing fingers at aren't minor issues - they go to the very heart of the corruption of the crony-capitalist scam that has been driving the U.S. (and much of the Euro nations) back towards the Gilded Age. I'd have liked to see the U.S. and other western publics "get" that. But this doesn't seem to have happened, and at this point I have to conclude that it ISN'T going to happen. And for someone like me, who is and whose kids will be, part of the 99%, that looks like a bad thing for the future.

Saturday, October 22, 2011

As It Was and Ever Shall Be

Basil's posts on Occupy Wall Street got me thinking "Hmmm...didn't I write something about that..?" and eventually I went rummaging around in the back of the packrat portion of my mind and, sure enough, here it is from August, 2008.

"The Public Be Damned"

Every so often I run across something that reminds me so forcibly, so violently, of the present desuetude of our republic that I lose my wind just for a moment.BERJAYA

Here's Glenn Greenwald describing the scene at the current Democratic National Convention, where the telecom giant AT&T; throws an intimate little shindig for the very people - imagine that - who helped them evade lawsuits for their lickspittle subservience to the criminals in the Bush White House and the NSA who believe that the laws of the land are, in the immortal words of Leona Helmsley, "for the little people".BERJAYA

I challenge you to read it and not throw up a little in the back of your mouth. It's sickening. It's the real face of "American politics".

It's not like this is something new in American politics. The rich are always with us, and the only difference between the New Gilded Age and the Old was that back then, a man like Mark Hanna could openly say; "Come on, you've been in politics long enough to know that no man in public life owes the public anything."

Today we have to pretend to "care" about the Great Unwashed, but the reality of America is that unless we're in the top 1% of all American incomes many of us have much of the freedom of a polled Hereford being prodded up the chute towards that dark building where we await our political and economic fate. Are we better off than some Ukrainian peasant or Zimbabwean prole? Sure. Will that mean much when our job is offshored, or we get sick and run through our insurance, or the highway to our parents' falls apart and we have to drive a 40-mile detour to visit?

No.

Here's Andrew Bacevich talking some hard, cold sense that most of us will close our ears to:
"The military-industrial complex will inhibit efforts to curb the Pentagon's penchant for waste. Detroit and Big Oil will conspire to prolong the age of gas guzzling. And the Israel lobby will oppose attempts to chart a new course in the Middle East. The next commander in chief will inherit an intractable troop shortage. The United States today finds itself with too much war and too few warriors. That alone will constrain a president conducting two ongoing conflicts. A looming crisis of debt and dependency will similarly tie the president's hands. Bluntly, the United States has for too long lived beyond its means. With Americans importing more than 60% of the oil they consume, the negative trade balance now about $800 billion annually, the federal deficit at record levels and the national debt approaching $10 trillion, the United States faces an urgent requirement to curb its profligate tendencies. Spending less (and saving more) implies settling for less. Yet among the campaign themes promoted by McCain and Obama alike, calls for national belt-tightening are muted.

Will we listen? Will we act? No.

Because, in the end, short of violent revolution, with the monetary grip on the levers of power, what CAN we do?

And because, in the end, we'd rather pretend that the future holds "freedom" and green pastures and sunny skies and try not to hear the cries of the other steers and the whisper of the killing knife.BERJAYA

Update 10/23: I was listening to the kiddos play LEGOS and eat seaweed for breakfast (the Little Girl, anyway - anyone else have a child that likes dried nori for breakfast?) and blogreading when I came across this, from David Atkins at Hullabaloo, which is so good that I have to quote it at length. To wit:
Simply put, in the 1970s America was hit with an inflation crisis that quickly became a stagflation crisis. There were also oil shocks involved. Simulataneously, the world was becoming increasingly globalized, which made it more difficult for American corporations to compete using American labor. Finally, as Hacker and Pierson have persuasively argued, big business banded together to begin more aggressive and cohesive lobbying efforts. These four trends were devastating politically for the middle class.

American public policy on both sides of the aisle reoriented itself away from a focus on wages and toward a focus on assets. Specifically, the idea was that wage growth was dangerous because it led to core inflation in a way that asset growth did not. American foreign policy became obsessed even more than it had been with maintaining access to oil, both to prevent future oil shocks and to prevent inflationary oil spirals. Wage growth was also dangerous because it would drive increasing numbers of American corporations to employ cheaper overseas labor.

But that left the question of how to sustain a middle class and functional economy while slashing wages. The answer was to make more Americans "true Capitalists" in Reagan's terms. Pensions were converted to 401K plans, thus investing about half of Americans into the stock market and creating a national obsession with the health of market indices. Regular Americans were given credit cards, allowing them to take on the sorts of debt that had previously only been available to businesses. Most crucially, American policymakers did everything possible to incentivize homeownership, from programs designed to help people afford homes to major tax breaks for homeownership and much besides.

Low prices on foreign-made goods were also a policy priority. This had a dual benefit for policymakers: lower prices offset stagnant wages, while keeping core inflation low. Free trade deals were also a major centerpiece of public policy in this context. Few politicians actually believed that these deals would help increase wages and jobs in America. But what they were designed to do is keep low-cost goods coming into America, while increasing the stock value of American companies exporting goods overseas, thus raising asset values.

Low interest rates were also important. Renters and savers suffer in a low-interest rate environment, but borrowers and asset owners do very well. Tax cuts, of course, are also helpful in offsetting the impact of wage stagnation.

Houses and stocks, then, are assets that rise independently of wages. Low-cost overseas goods and the easy availability of loans and credit provide offsets to low wages. Low interest rates and tax cuts help as well keep assets afloat as well. The bipartisan idea from a public policy standpoint was not simply to enrich the wealthy at the expense of the middle class. The idea was to make the American middle class dependent on assets rather than wages. I was at a conference many years back, the purpose of which was to bring corporate bigwigs together in defense of free trade against what they feared might be a protectionist backlash. One executive told me point blank that if only enough Americans were invested in the stock market, they wouldn't gripe about Halliburton and other similar companies because they would say, "Hey, I own part of that company!" When I objected that that only half of Americans were invested in the market at all, and of that figure far fewer had significant assets invested, he retorted that more Americans were invested in the market than I thought, and that policy needed to be designed to push more Americans to invest.
I've often looked at our public policy and tried to figure out "What sane polity would enact policies seemingly designed to return itself to what may have been the least-stable political conditions (the openly-oligarchic period between about 1870-1930) since before the Civil War?" And here's the answer. And Atkins has a simple and exceptionally sane solution:
"The recklessness and stupidity of this sort of approach to public policy should have been proven by the 2008 financial crisis that saw the rapid destruction of asset values in stocks, bonds, and housing. Predicating economic health on asset growth is a pipe dream: most people will never have enough assets to make it work, and asset growth is far too unstable to serve as the basis for a functional economy.

Whether they can articulate it or not, what has most progressives most incensed about the Obama Administration's domestic policy is that it has ultimately hewed to the same asset-based economic model. When the Administration could be progressive on cutting costs or ensuring equality without negatively impacting assets, it did so. That's what the ACA, the Ledbetter Act, the repeal of Don't Ask Don't Tell and numerous other left-leaning Administration moves were designed to do. But the Administration has been very reticent to take any actions that would negatively impact the value of assets.

America will only return to real economic health when the asset-crazed insanity of the last 30 years is brought to heel, and America returns to a public policy that is far more interested in wage growth and economic stability than it is in asset inflation. Until then, we can expect continued political and economic shocks from an angry electorate and an economy that has run off the rails due to 30 years of deeply misguided anti-inflation, pro-asset-growth ideology."
But sane or not, my skepticism remains. The wealthy have their hands around the neck of the government; they will not be pried loose. And they are no more prescient that their counterparts were in St. Petersburg in 1917 or Paris in 1789. They will destroy the village in order to save their privileges. And the extraordinary coalition that pulled our nation away from the totalitarian abyss that awaited it in 1932 - Soviet communism on the one hand, Italian (and, later, German) fascism on the other - shows no signs of being there to ride to the rescue.

In other words?

WASF.

Tuesday, August 16, 2011

Backside to the Future

(Being A Mere Diversion, And a Personal Rumination on The State of the Nation and the Upcoming Election Year)

With the ludicrous Ames Iowa "straw poll" it appears that the 2012 campaign season has officially begin...15 months before the actual election.BERJAYAI can't begin to express how this irritates me.

Glenn Greenwald explains better than I can how the combination of endless "election" coverage combined with the rapacious cable news 24/7/365 cycle hammered down into the simpleminded "tell the masses what they want not what they need" paradigm of the corporate news (and, of course, sprinkled with some commercial gottasellsomeads! pixie dust) goes in one end and emerges a Möbius band of idiocy that ties misinformation into disinformation with plain, good old fatuousness for a sort of fractal stupidity; refracted infinitely to where any hope of extracting simple, sane understanding of the people and their ideas has vanished.

But at least on one hand the tale told by one of the idiots - while set about with sound and fury signifying nothing (that is, the usual folderol involving gays, guns, and God - fodder for the gossip columns and the prayer breakfasts but nothing more than a magnetic sticker on the bumper of the People Who Matter in our electoral "process") - is simple enough.

No new taxes. In fact, no taxes at all, or as close as possible.

Small government. Teeny, tiny, eensy-weensy leetle government (except the part that blows up Scary Brown People, but that's the cool part, anyway).

Freedom for the Job Creators! Deregulate everything regulatable!

Free Markets! (meaning; deregulate even MORE stuff!)

Plus some other truly crazy shit; abolishing the Fed, returning to the gold standard, protection for precious rapist-babies...but you know the drill - that's just to give the loonies a shiny pretty to play with.

Here's the thing; this is nothing new. Nothing. We've already been there, done that, and got the crinoline and the Arrow t-shirt.

Low taxes? Freedom for the magnates? Utter deregulation and a complete lack of federal anything?BERJAYAThe Gilded Age.

Seriously.

And, if I have to be scrupulously honest, if I was in Forbes 400, if I was one of the rich and the powerful...why not?BERJAYAHell, the pre-Depression United States was a paradise for a rich man (woman? enh...not quite so much). Mansions? Servants? Senators appointed at your whim? Entire federal administrations in your pocket? Ask the Doles how that Hawaii thing worked out for them, the Rockefellers how the Standard Oil gig payed off before those meddlesome Progressive trustbusters elbowed in.BERJAYA

And let me be honest about this, too; the United States works perfectly well as an open oligarchy. It did from about 1870 to 1930, and don't kid yourself; some pigs are still more equal than others and always have been. Tell me that you get the same meal ticket emerging from the Oregon Episcopal School versus Jefferson High School here in Portland.

Henh. Right.

But I'm not here to argue equality of outcomes.

I'm here to talk about next year.

It's becoming painfully clear that the GOP is going to nominate someone whose positions on things like federal regulations and spending are closer to those of John D. Rockefeller than his grandson. And if they win - and the continuing Great Recession makes such a win highly plausible - they will do their very best to return this country to the Gilded Age they by their words and deeds so seem to yearn for.

I consider this a very Bad Thing, largely because me and mine are unlikely to be among those included in the Four Hundred. We will not be robber barons; more likely we will be among the robbed. Mojo and I had a lovely saunter about our graceful Pittock Mansion this sunny Sunday, and I observed that had we been alive then our only glimpse of the beautiful appointments and spectacular vistas would have been as we carried the dirty linen down the stairs or brought master his cigars.BERJAYABut I have to accept that it would not necessarily be a Bad Thing for the nation. More nations have thrived and grown in wealth and power as oligarchies than as democracies, simply because of the late arrival of popular democracy on the historical scene. The nation as a nation might do quite well.

And it is unlikely that even the most teabaggiest Republican government would be able to go full public-be-damned on us. The welfare state is deeply ingrained in U.S. society, and there would come a point where even the most Galtian overlord would draw back from reintroducing a world of match girls and breaker boys even if it helped bring back the Gibson Girl and the Arrow Shirt guy.BERJAYAMake no mistake; "reforming" the entitlement systems now in place mean simply throwing people out of them. Some of those people will find ways to live without their dole money; the American people had all sorts of ways of coping with poor, sick, old parents and injured relatives before 1933 and they can reinvent those ways again. Families will return to the multigenerational homes of the past, where retired grandma cares for the grandkids while mom and dad work, in return for food and a bed. There are ways, there are ways.BERJAYABut.

And this is a big "but"...

Two things have changed enormously since the last time we tried to live this way, assuming that the GOP experiment goes forward. And I'm not sure whether they've really thought this out.

First, in 1911 the U.S. was a burgeoning industrial power; work was there - not always good work, often dirty, hard, low-paying, dangerous work - but it was there. And it was work that needed people; vastly manual, even when skilled. The factories of the Gilded Age needed lots of poor people to work them.BERJAYASecond, there was still a hell of a lot of "open" land, and "open" places, for people to go to try and start again. The frontier only officially closed in 1890, and even in the Fifties there were lots of places that were still booming and enjoyed a boomtown's need for people.BERJAYAAnd both of of those "safety valves" are gone.

If the Great Recession and the thirty years of deregulation, outsourcing, offshoring, downsizing, and deunionization have proved anything to the people Who Matter in business and politics, it's that Henry Ford's old paradigm - pay the workers better so they will buy more stuff - has been broken. The "old economy" here in the U.S. - the economy that depended on American working people working to make stuff that other American working people bought - is tanking, HAS tanked, and I don't think anyone knows how to put all those people back to work in any sort of work that pays a living wage.BERJAYAAnd there's nowhere to "go". The frontier really IS closed, and there's no hope for people to take up forty acres and try and make a go of it. Oh, sure, you can try an start-up a little company, make cute glass cups or design webpages or invent a new application for a cell phone...but working for yourself is a backbreaking task, and especially in the corporatist U.S. of 2011 there are so many ways that a bigger, more powerful competitor can dry-gulch you. My wife is a "contractor" and I've seen the sausage-making up close. They're right - it's not pretty. And it's not going to get you into the parlor at Pittock Mansion, either.

So assuming that the Gilded Age Project largely succeeds, we can assume that it will result in a fairly large group - larger than we have dealt with in living history - of relatively permanently unemployed or under-employed people, people who not only don't have work but for whom the IS no work, no work that can't and won't be done by someone in Bangladesh or Uruguay for a fraction of what that American would need to make to live even at poverty levels in this country. That among this group will be many old, sick, and old sick people. And that if there IS a way out of that throwback to the future it is something that not only is unapparent to us now, but even potential precursors are not apparent.

The old economy is failing. The new economy - whatever that may be - has not yet emerged, if it ever will emerge in any form that will help those knocked down by the fall of the old economy to their feet again.

And one major political group in U.S. politics believes that the best response to this is to return as closely to the conditions of 1889 as possible.

So.

I'm not sure what is in store for me, for my family, for you and yours. But I suspect that even if we don't end up turning back down the road towards the past we're in for some hard years ahead.

And if we do...well...

If the U.S. Army taught me one thing, I learned how to mop a fucking floor.BERJAYAHopefully when I get laid off I won't be too old to get a job cleaning up at the Big House.

Saturday, August 6, 2011

Befehlstaktik

As an afterhought to jim's posts about the lack of strategic thinking in our civil government (i.e. the fairly clear evidence that if our political "leaders" were to be drafted less than a handful of them would have the mental horsepower to make a corporal competent enough to lead four privates to a whorehouse and issue instructions on the tasks, conditions, and standards expected of them once they got there) I thought I'd point you towards this interesting essay from John Robb. Here's his money graf:
"...an extreme concentration of wealth at the center of our market economy has led to a form of central planning. The concentration of wealth is now in so few hands and is so extreme in degree, that the combined liquid financial power of all of those not in this small group is inconsequential to determining the direction of the economy. As a result, we now have the equivalent of centralized planning in global marketplaces. A few thousand extremely wealthy people making decisions on the allocation of our collective wealth. The result was inevitable: gross misallocation across all facets of the private economy."
Gosplan, Comrade Koch?BERJAYAI don't always agree with Robb, but he may be on to something here. Certainly the mess we're making in our response to the Great Recession - with the experience of the original Great Depression right before out faces - suggests more than just incompetence. You'd almost have to suspect deliberate ignorance, arrogance, and ideological purity as culprits.

Although perhaps we really ARE that stupid. It's SO hard to tell...

Thursday, August 4, 2011

A Static Display of Impotence

BERJAYA
--Dollar Operation, Arend van Dam

How can I bear unaided the trouble of you,

and the burden, and the bickering!

--Deuteronomy 1:12


It is part of the general pattern of misguided policy

that our country is now geared to an arms economy
which was bred in an artificially induced psychosis
of war hysteria and nurtured upon
an incessant propaganda of fear
--Gen. Douglas MacArthur


There can be economy
only where there is efficiency
--Benjamin Disraeli
___________________


The recent debt ceiling debate and budget cut proposals led Ranger to think about the Principles of War and how they were violated in the last several weeks.

Ticking off the list:


MASS:
This fight could not place the combat power at the decisive place and time; it was an exercise in futility. The decisive battle should not be about caps and cuts but rather, how do we stem the economic assault on our defensive position? We are re-acting when we should be acting. The entire debt limit discussion was an admission of defeat.

OBJECTIVE:
There was not a clearly-defined, decisive or attainable objective. Just as with the present U.S. Counterinsurgency (COIN) policy, the negotiation gave more credence to politics than to attainable objectives. The objective was not reached because it was obscured by smoke.

OFFENSIVE:
Neither political party maintained or achieved the initiative.

SURPRISE:
Both parties put all their assets forward, leaving them with nothing in reserve (which also affected their maneuver plan.)

ECONOMY OF FORCE:
Ditto above regarding surprise. Additionally secondary efforts were ignored and never prioritized. Not discussed were balance of trade, loss of jobs, balance of dollars leaving our shores, loss of industry and weak economic white papers. Nope -- we just focused on borrowing more, slashing and burning more.

MANEUVER
:
Both sides were totally dug-in defending in zone with no demonstrable mobile warfare. Neither side possessed the combat power essential to overrun the opposing side. It was a static display of impotence.

UNITY OF COMMAND:
One would assume the President would be the responsible commander, but this oversimplifies the situation. Obama should have stated his commander's guidance, but allowed the maneuver commanders to formulate their respective Operations orders. By placing himself on the battlefield he ignored the subordinate chain of command. In addition, his presence stiffened the opposition to an unacceptable intransigence.


SECURITY:
There can be no unexpected advantages in this altercation because we had already lost our freedom of movement and would win or lose with the forces committed. This hardly describes the concept of security.

SIMPLICITY:
Simplicity was violated because the principle of objective was ignored. The leaders preferred to ignore this principle to the detriment of the goals of the operation.

In a recent Time essay, "How Today's Conservatism Lost Touch with Reality," Fareed Zakaria bemoans the intransigence of today's conservatives, saying they have lost their touchstone of "reality" in exchange for reactive policies which ignore the truths on the ground. For instance, they failed to recognize that, "(t)axes — federal and state combined — as a percentage of GDP are at their lowest level since 1950":

"The U.S. is among the lowest taxed of the big industrial economies. So the case that America is grinding to a halt because of high taxation is not based on facts but is simply a theoretical assertion. The rich countries that are in the best shape right now, with strong growth and low unemployment, are ones like Germany and Denmark, neither one characterized by low taxes."

So the can has been kicked down the road; Ranger hasn't any faith that the next group of mutton-heads will apply the simple and infallible Principles to their effort.

Everyone says they love the military, yet they cannot apply some simple procedures to their policy-making processes.

Sunday, July 24, 2011

Horsefeathers

Since we're piling on the "United States - Where Dysfunctional is the New Black!" I thought I'd add another log to the fire with some observations about the U.S. higher education system.

Conventional wisdom has gone all in for the "It's All About The Degree!" meme in the past two decades or so. Supposedly the fact that we have put in place tax, tariff, and economic policies that encourage "job producers" to produce jobs overseas is offset by the new excitement among Americans for going to college, getting degrees and thus moving into the Exciting World of the Real Middle Class. As opposed to those yobbo rivetheads who just ACTED middle class because their union jobs paid them so well.

Well, Ed over at Gin and Tacos has a nice little rant on the effect that this explosion of student bodies has had on the Grove of Acadame:
"The cost of higher education, either for students or state legislatures, isn't going to go down until they stop putting politically expedient Band-Aids on their problems (furloughs, larger classes, pay/hiring freezes, more temp labor in the classroom) and decide to focus on what is supposedly their core mission: educating people. The new $100 million MultiTainment Complex and the Orrin Hatch Learning and Instructional Center are expensive frills. Athletic programs are money-losing albatrosses. Administrators exist mostly to perpetuate the need for administrators. Teaching and research should be 99% of what we do. But mention that on the Campus Tour and watch the eyes start to glaze over…"
My experience teaching at community college mirrors his only without the research. My observation is that many, many of the students there were thoroughly unprepared for their junior college entry, that the community college did nothing, or next to nothing, to try and make things go better for the poor Powerpoint Fodder - in particular, most CCs and JCs are staffed with overwhelmed, overmatched adjunct faculty because the administrations know perfectly well that there are waaaaayyyyy more people out there with advanced degrees than there are teaching jobs for them - and their primary job seems to be to act as a revenue generator through monstrous tuition increases.

But on of Ed's commentors makes what I consider to be the most trenchant observation about this entire fucking mess; it's the credit, stupid.
"Comrade Luke has it right,"
he says,
"the root of the matter is the guaranteed student loan system that allow 18 year olds to amass debt beyond their comprehension that they will not be able to discharge even in bankruptcy.

If there aver were an argument for the free market it would be this. You can't charge more than your customers are willing to pay. The ready access to limitless credit to people who would never qualify for a loan of any kind is what has driven tuitions to the ludicrous levels they are today.

Perhaps someday when we acknowledge our third world status it will change but until then let's all celebrate the future of online education that costs just as much but without bothering with such things as classrooms, professors or even dorm rooms.

Bring on the future."
I know a young woman who is a tremendously bright, motivated person. Right now she is out of work, her unemployment is running out (she got temporary employment with the Census but that is going away, obviously) and she is crushed, completely buried under the student loans. Part of her problem is that she majored in a humanity that offers her little in the way of employment except in truly lush economic times.

But the other part is that she should never have been accorded the sort of credit it took for her to spend two years at UVA. It starts her off with a huge rock on her shoulders that will perforce warp her life as she struggles to carry it and has to find ways to pay it down.

Perhaps it's the curmudgeon in me. But it seems as I grow older that we have either found more perfect ways to do simple things wrong...or those ways were always there and it just took me that long to recognize them. Either way, it's like hitting oneself in the head with a hammer because it feels so good when you stop

Thursday, March 31, 2011

Calvin Explains It All For You

Taking a break from Libyan Hi-jinks, a brief visual summary of U.S. economic policies and the interaction between the public, government, and private commerce.BERJAYAWhat's kind of sad is that Watterson drew this, what, a dozen years ago?

And, if anything, the corporatist nature of the U.S. political/industrial complex has become even more pronounced since then.

I like to call this; "Bitchslapped By The Invisible Hand, or, If We Did This With Our Pants Off We'd Go To Jail For Rape".

Thursday, February 24, 2011

Arc of a Diver

Bear with me, because I'm really thinking out loud here; I don't pretend to be parading out expert opinions or fully-formed ideas. There are just some issues I'm seeing in the U.S. that concern me and I wanted to lay them out and let you all kick them around.

Let's start with some of the elements that have been elemental to human life since Sumer, and some others that appear to have become more essential to life in the United States in the early part of the 21st Century.

First, let's begin with the proposition that human well-being comes from a variety of sources, but that the basic principles of Maslow remain sound. Physical needs like adequate food, shelter, and safety come first. If you are starving under a bridge in the February rains it doesn't really make much difference whether you are in a terrific love match. You will be dead soon of exposure, leaving your amorata bereft and looking for a new place to sleep.BERJAYASo securing those fundamental needs is the primary concern of humans everywhere.

For most of us in 21st Century America this means a job; gainful work, work that pays enough to secure that rented flat, food enough to live on, clothing, and the small fripperies that differentiate living from existing.

Let us further assume that political ideals and concerns will always come second to the primary need for security and well-being. Mark Twain called this "cornpone opinions"; tell me where a man gets his cornpone, said Twain, and I'll tell you what his opinions are.

To put it another way, a person fearful of want and hardship, of losing his job, that she will fall into desperate straits, is unlikely to worry much about the abstracts and deeper implications of policies and politics. As hard cases make bad law, frightened people make bad politics. While it would be nice to think that humans respond to desperate times with calculated courage, my experience is that the pressure of fear and want make fools of the hardiest of us. The usual reaction to pressure is panic. The main reason that the Framers of the U.S. Constitution wanted to limit the franchise to men of property is that they feared the "passions of the mob" - by that they meant the impact of the landless and moneyless being led, or driven, by their need to truckle to those whose patronage employed or supported them.BERJAYAAnd that brings us to the moment, the second Winter of our economic Discontent.

We the People have been assured, reassured, re-reassured that the key to economic strength is through the unshackling of the creative engine of capitalism. That the Market would bring us all prosperity, and that the best way to spread that prosperity was to lift the bonds of taxation and regulation on the Masters of the Universe, the financiers and entrepreneurs and captains of industry.

The rising tide that their flood of wealth creation would break loose would raise all our little boats alongside their yachts. We would lave ourselves in the streams of lucre they would bring forth, like Moses bringing forth water from the rock.

So we helped them, we cut their taxes - lower than anytime since their grandfathers smashed the Republic on the rocks of the Depression - and we waited. We, many of us, demanded the end of public unions, the crushing of deficits, the end of public spending, just as the powerful and wealthy told us would help - and we waited.

And certainly their tide has risen. The stock market is rising, many of the largest companies and corporations are awash with profit.

But for many of us the water is still at low ebb.BERJAYAEmployment is still around 10 percent. Worse, many more of us have just stopped looking for work, or are working at menial or part-time jobs that pay little of what we earned before and not enough to live on above the meager minimum.

And here is the worst part of my fears.

I think that this Great Recession may be the harbinger, the slow drawback of the sea that fortells the arrival of the tsunami.

I think we are seeing a great convergence of political, economic, and social changes that spells trouble for those of us ordinary citizens of the Republic.

I think we will find that many of the lost jobs may never return. And I think that this may portend the end of the great "Middle Class Era" of the U.S.

When you think about it, wealth for the ordinary American went through two great periods of expansion. In the late 18th and early 19th Centuries that expansion was literal, physical; the nation prospered as it grew larger, incorporating huge territories into itself. If an American needed or wanted to try and prosper, he or she could move physically to a richer or newer part of the land.

By the end of the 19th and into the 20th Century, the expansion was technological and industrial; people left off farming and started making things, and the things we made became ever more complex and valuable.

But this depended on two things;BERJAYA

First, it depended on resources, and, more importantly, on domestic resources. The iron and coal were mined here, the petroleum drilled and refined here, the cotton grown here and the fabrics woven here. Americans largely used American resources to make American products. That economic power enabled us to purchase resources we couldn't find in North America and still have wealth to spare; our manufactured goods were as much in demand overseas as the resource materials were here.

Second, it depended on tariffs. For much of our nation's history we protected our industries with tariff barriers that made trade within the nation more economical than trade without, despite the relatively high wages we payed each other.BERJAYAIn some cases we protected our industries absolutely; in the early 19th Century importing German or British steel would have been cheaper than using steel from Pittsburgh or Cleveland, even though the German and British steelworkers made no less (tho probably little more, and that little enough) than our own. But high tariffs forced Americans to trade with each other.

Well, the resources - especially petroleum - are gone and will not return. And we have chosen to lower the tariffs in the name of free trade and the acquisition of volumes of Cheap Plastic Crap. That has been good in the short run, and for the manufacturers of CPC. Now I think the bill is going to come due.

Because corporations have realized, and, soon, I think the American people are going to find, that many, many formerly living-wage jobs can and will be done by people in places like Brazil, Rangoon, Calcutta, and Guangzhou.BERJAYAThese jobs don't take a vast amount of mental acuity, and, what's more, the education the people in Calcutta and Guangzhou is becoming no worse than our own. And their costs are much less than ours. We simply cannot compete with engineers in Mumbai who can design as well as engineers in San Francisco and for a fraction of the price. I think that we will be surprised, and dismayed, by the number and type of jobs that can and will be offshored.

I think that we are going to find ourselves with an indigestible 10 to 20 percent of the population that is going to become "long-term un/under-employed". I think this will have a disastrous effect on U.S. politics.

It's easy to forget that prior to the War on Poverty that roughly a quarter of the U.S. population was poor. Really poor.BERJAYAShotgun shack, barefoot-hookworm-and-pellagra, bad teeth and rickets poor. What saved us, to a great extent, is that most of those poor were either immigrants living in city slums or the rural poor. The first were too cowed and frightened to be much trouble, the latter were always able to eke out some sort of living, even in bad times.

But the rural poor are pretty much gone; what's left are agribusinesses feeding crap to the poor and lower middle class and the craft farmers feeding slow food to the upper middle class and wealthy. The bulk of the urban poor and suburban poor have lost the skills to farm; the countryside has lost the ability to insulate us from culture shocks. And the likelihood of as much as 20-30 percent of the U.S. becoming poor again, really poor - especially if the recent Republican fervor for dismantling the social safety net takes effect - is likely to remove much of the fear from the urban slums.

In revolution the real devastation begins with the thought "What the hell do I have to lose?"

And the gulf between the rich and the poor is widening again, to an extent unseen since, again, the Depression.BERJAYAIt's worth remembering that FDR wasn't some sort of aristocratic Santa Claus. Yes, he had concern for and interest in those suffering from the worst of the Depression. But he was also a cunning politician, a frighteningly bright guy, and an old New York patroon. He could see what was happening as hard times made desperate people make mad and bad choices; the wealthy and then the middle class dead and imprisoned in Russia, fascists springing up in Germany and Italy, class war in Spain, and he didn't want to see it here. His opportunity came when the banksters and the free-marketeers shit the bed in 1929, and he rammed through some arguably unconstitutional measures that bought social peace for the succeeding fifty years.BERJAYABut I think that deal, that New Deal, is falling apart.BERJAYAI honestly have no idea what can be done. I can't see hopes for reviving the U.S. middle class the way it was created after the Depression; by raising the working class into the "middle" by paying them a wage that brought with it middle class expectations, manners, and mores. The competition from foreign workers is just inescapable.

I can't really see the creation of "new industries"; we're at the tag end of a technological cycle.

For example, look at the pace of technological progress, say, between 1910 and 1940 - practically the entire industrialized world changed! An American of 1910 would have had a hard time recognizing the world of 1940.

Another thirty years - from 1940 to 1970 - saw great changes as well. But not was great as the preceding thirty.

Between 1970 and 2000, still more changes. But changes in scale, or type, rather than in method. We went from landlines to "bricks" to cellphones to iPods - but a phone is a phone. We went from mainframes to laptops - but a computer is a computer. The next great technological leap may well be out there...but it seems increasingly like a "black swan". The arc of the present technologies seems predictable and increasingly incremental.

So the U.S. seems presented with the prospect of an increasingly divided society, with a small group of very wealthy at the top, a sullen lump of intractably poor and unemployable at the bottom, divided by a frightened and dependent remnant of the middle class between.BERJAYAUnwilling to tax themselves, the wealthy retreat to their gated enclaves. Unable to pay for themselves, the poor are lost, increasingly nothing more than a mob of votes to be bought and sold. Resented by the proles and ignored by the aristos, the rump of the middle finds themselves chained to the rock of their stagnant mortgage values with the vultures of the rich and poor rending their livers as they dread the day their job is finally outsourced or offshored.BERJAYANow - don't get me wrong. I don't think that we're crash-diving into some Mad Max apocalypse, or that the U.S. is going to become Afghanistan tomorrow.

This country has always been tremendously resiliant. We have great reserves of human energy and creativity, and there are always events that can break favorably, unlike the gloomy scenario I've painted.

But combine everything we've talked about with a world that wants, and is getting to the point of being able to demand, what we have kept to ourselves for fifty years; with the increasing possibility that we are producing and consuming petroleum orders of magnitude faster than it can be formed from biomass; with the collapse of the post-WW2 political center into the repolarized politics of the Oughts and Teens...

I wondre if we have the wherewithal - political, social, economic - to reverse this trend and reestablish a broad middle class of the sort that had such a large effect in stabilizing the nation between 1945 and 1980; that is, the nation that most of us grew up in and take for granted.BERJAYAIs it?

One solution could be to "lighten" or "open" the U.S. economy. Until now we've rested like a massive stone wall on agriculture, resource extraction, and manufacturing. Above that foundation are the wood floors, the service industries, from the architects, engineers, and designers to the attorneys and the doctors. Above that are the gingerbready attics; the caterers, beauticians, the financial gamblers, the writers, the graphic artists, and the people who sell kitschy knick-knacks in twee little shops.

Agriculture and mining long ago lost their mass employment potential; most of us now work in the service industries. But there has to be a foundation, and that foundation is increasingly looking rather seedy. But do we need "mass employment"? Can we design a society that uses technology to replace human bodies, relies on creativity and a "nimble" exchange of good and services? One that is based on fewer people, but those people capable of more complex tasks? Could the way out of the dilemma of the un/under-employed be to simply have fewer people to BE unemployed?BERJAYAOr perhaps that next wave discovery occurs and revitalizes the U.S.

Or...or something.

I hope.

Because if not I am worried about my children and the nation that they will grow up in. If not I am worried because of what I see as the political and social state of the nation; I'm not convinced that we are prepared to deal sensibly and effectively with the sort of problems I've discussed.

If not I am worried that my children's lives will be more difficult than mine was, and that is every parent's worry.

Tuesday, January 26, 2010

Everything Old is New Again

Jim and Lisa at RANGER AGAINST WAR have a nice little post up discussing something similar to the preceding post here - regarding what is happening to the U.S. economy and the apparent disconnect between the travails of the ordinary citizen and the circus act going on inside the Beltway.
"Discretionary wars, health care tampering . . . it seems like fiddling while Rome burns. Walmart is the new GM, and when this bellwether of our economic fitness is straining at the seams, doesn't that demand notice?"
Perceptive boyo that he is, the Minstrel Boy adds:
"...the game needed to be changed. the styles and rules altered. That wasn't done. also, the pig of bad debt, credit default swaps and other failed schemes has yet to move through the python of the economy. Without intense and often draconian measures to rearrange the way business is done, all we are doing is postponing the inevitable collapse."
The frustrating thing about all this is that this isn't rocket science. Pretty much anyone who has looked at market economies knows and knew that without some sort of regulatory and fiscal governor that the market goes through these booms and busts regularly. U.S. history is full of them, from the foundation of the republic until the Great Depression.BERJAYAAfter 1932, though, and the rentier class having shat the bed so thoroughly that even the self-delusional Rockefeller wannabes couldn't pretend something wasn't wrong, the Roosevelt Revolution slammed down on the financial high-rollers, forcing them to swap some of their profits for the assurance that the Feds would prevent the proles from lynching them - and remember, they had Soviet Russia as a scary reminder that this wasn't impossible.

So most of us labored under the artificial stability of the regulated market for most of our lives. We thought that this sort of economic crash, the kind that destroyed people's lives and wrecked entire regions, was a sort of myth we read about in history books.

But Ronnie and his merry band of freebooters (and let me add that although the debased intellectual coin that brought us "Greed is Good" came from the Right, the political lifting that removed the New Deal brakes on the financial gamblers required many enablers of the Left, as well, the hypocritical bastards...) brought back the Big Casino, gutted Glass-Steagall, releveraged the markets and ushered in the financial crapshooters (Bob Reich, I think, said once that the only real financial "innovation" that benefited the average consumer was the ATM - everything else was a way for the financial insiders to spin illusory profits out of the bubbles) and, hey, presto, it's back to the Great Panics of the 19th Century.BERJAYASo, MB, it's more than just a temporary digestive problem. I truly believe that we've fundamentally changed the way the game is played, changed it back to be closer to the way it was played in the days of the Robber Barons and the Gilded Age.BERJAYAThoughts?

Fight, Flee or Freeze?

From Attackerman:
"For the Obama administration to exempt defense spending from its kinda-sorta-spending-freeze is a position that makes no sense from a policy perspective. None at all. From a political perspective, it only begins to make sense because a brain-dead media would amplify the braying ignorance blasted from a GOP congressional megaphone about Defense Spending Cuts OMG. And even then it doesn’t make sense. A holdover Republican Defense Secretary is now the biggest advocate of an even slightly sensible defense budget in the Obama administration."
I agree completely with the point that making the DOD exempt from budgetary consideration is insane. Whether or not Defense spending is excessive is another matter - I suspect that it is but don't know enough of the programmatic details to make a rational assessment.

Glenn Greenwald has more:
"But the freeze is more notable for what it excludes than what it includes. For now, it does not include the largest domestic spending programs: Medicare, Medicaid and Social Security. And all "security-related programs" are also exempted from the freeze, which means it does not apply to military spending, the intelligence budget, the Surveillance State, or foreign military aid."
The inclusion of the Big Three domestic social welfare programs makes a mockery of this "freeze". This reeks to me of pure political kabuki, the thing that the Obamites were supposed to "change".BERJAYA
Horsefeathers.

(Update 1/26: Andy makes a good point, and the previous pie chart lumped a lot of additional, perhaps defense-related but still technically not pure DOD spending together. This is from the CBO, and breaks out the DOD as a stand alone portion of the budget. It is still, you note, after Social Security, the largest individual slice. And, realistically, the VA, Homeland Security, and the "off-budget" funding for things like the NSA should be included in the DOD slice. It's not THE biggest slice...but it's a hell of a big slice.)

But on the DOD question - this is called "MilPub", after all - this reeks of Democrats running in fear of Republicans demagoging the issue of defense spending.

There is no question in my mind that the GOP will not ever make sane decisions about DOD funding - they all want the money and they all want it all (if they could zero the budgets for the Departments of Energy, Education, HHS and EPA and throw it all at another carrier air group they would, IMO). If the Dems have no stomach for it, is there any way short of Malthusian fiscal collapse to reform the defense budget and acquisition process?

Have at it.

Tuesday, September 8, 2009

Game Called: An Economic Parable in Nine Innings

The 2009 incarnation of the Portland Beavers ended their season yesterday afternoon.BERJAYAThankfully.

This year's version of the AAA ballclub wasn't the worst - the old ragtime era Beavers still hold that record - but it was in the running. The current rubber dummy wearing a Beaver suit is a wholly owned subsidiary of the San Diego Padres, one of Major League Baseball's 2009 Queens of Suck, and among the worst franchises in the game. Their best player is Tony Gwynn, who hit an assload of singles and not much else. Gwynn, therefore, is the perfect embodiment of the San Diego Padres; anti-Zen baseball in which a hell of a lot of activity means absolutely nothing.BERJAYA

And this is who OWNS the Portland Beavers.

Now bear with me here, because I'm going to go a long way around to make a point.

First of all, the Portland Beavers' 2009 season encapsulates, in almost perfect awfulness, the state of professional baseball in the Stygian depths below the big leagues.

The Bevos lost 84 games this year. During this process they went through three managers and 69 - count 'em, sixty-nine, soixante-neuf - players. A grand total of about 370,000 people came to watch this debacle, this mutual fellatio of baseball ineptitude, almost 5,300 per home game. Despite this the owner of the Beavers, Merrit Paulson, is quoted as saying:
"I wouldn't say that losses have impacted us from a business standpoint, but that said, we were way below .500 in 2007, we're way below .500 now and 2006 wasn't a particularly good year either," he said. "You'd like to be able to compete."
Think about that for a moment.

This team finished dead last. They have now finished either last, or close to last, since winning the Pacific Coast League in 2004. Their 4-year record or 320 losses is second-worst in the PCL. And yet...and yet...the team owner says that he wouldn't say "that losses have impacted us from a business standpoint."

In other words...lose? Who gives a shit? We're making money!!

And why is this?

Because, simply stated, the Portland Beavers are slaves. They exist not as an independent entity free to succeed or fail on their own merits. They are compost, a creche' for ballplayers, the reeking humus from which San Diego Padres are grown. The ownership in San Diego has zero - absolutely no - interest in the piddly little PCL "pennant race" and neither do any of the other real PCL team owners, the big league clubs. They will continue to inject money into the corpse of baseball in Portland, Las Vegas and Modesto so long as the walking dead thing grows players for them.BERJAYAWhat is happening in Portland - and Little Rock, and in Boise, and in Wilmington, Delaware, and in Ossinning, New York and the other 18,415 cities, comunidades, towns, villages, urbanas and the one municipality (Anchorage, in case you're wondering) that don't enjoy one of the 28 teams that DO have the luxury of actually winning anything meaningful in the sport of baseball is a joke; a nasty, mean-spirited joke perpetrated by the Lords of Baseball and those in power who have accommodated their rapacious greed.

The Portland team exists only for its role in servicing the San Diego team; it is the whore, highly paid, lavishly compensated but whore nonetheless, of the Padres organization.

Is this right? Is this just? Should the peoples of Portland, and Boise, and Louisville, and all the other Portlands, Boises and Louisvilles, get a puppet show, a sham and an empty box, so that the people of San Diego can enjoy the Show?

For one thing, the slave minors, as presently organized, offer every player in them an orderly opportunity to make it to the Show. If you stay healthy and produce, you get moved up and, eventually, get a shot at the big club. The NFL, on the other hand, is all-or-nothing. If you get cut you might catch on in Canada, or picked up by another team. But the difference between getting a spot and getting cut may be a tenth of a second or a quarter pound of weight. When the owners fielded teams of scabs in 1987 it was pretty obvious that some of those players were within a reasonable distance of being a major leaguer. After three or four games, with the advantage of the weights, the 'roids, the coaching and the practice it was pretty clear that the end was in sight, with the "real" NFL players getting slower and smaller and their replacements getting stronger and faster. The NFLPA folded its hand and has never really been an effective advocate for the players since.

So freeing the minors wouldn't really be good for the superstars, and it wouldn't be good for the owners, the Lords of Baseball, or the sports networks, and it would be hard for the citizens of the 28 American cities that now have a big league team. Who would it be good for?

Well, the public, first of all, in all the non-MLB cities, who would have a chance to root for their own proud team, to compete as best they can at whatever level they can rise to. The model here might be the European football leagues, where every place has a local team and every local team has a chance to win their own silverware. The baseball fans in every locality, who will have a local team and local heroes, to inspire them and raise interest in the sport. Baseball players, who will have a chance to compete for more than just a promotion to the next level of an increasingly narrowing pyramid. The local newspapers and television, who will have genuine pennant races and local sports news stories to report.

Is this a perfect world? No. There will be lots of broken hearts and broken dreams, lots of chicanery and get-rich-quick schemes and goofy, idiotic promotional ideas. Baseball will become a lot less sleek, a lot less rich but at the same time a lot more lively, a lot more democratic, more part of more people's lives, and a lot more entertaining.

It might just become the National Pastime again.

Our 2009 national paradigm seems to be "bigger, richer, slicker". This seems to please the large, rich, slick components of our nation just fine. But I'm not so sure that its really in the best interest of our nation as a whole. I think that small, modest and versatile might be a better model for the 21st Century.

What do you think?

(Full version at GFT)