Showing posts with label the great recession. Show all posts
Showing posts with label the great recession. Show all posts

10/30/10

MORE POST CARDS OF DECEPTION FROM THE REPUBLICAN PARTY



This week I received two post cards in the mail from the Republican party about Scott McAdams. They both tout lies (In red):
-McAdams supports higher Social Security taxes.

"I have proposed lifting the artificial tax cap that benefits the wealthy and results in millionaires paying the same exact amount in Social Security tax as workers on the North Slope who make $106,000. This will extend solvency out into the foreseeable future." Tacoma News Tribune

-McAdams supports an income tax increase.


 "Congress should extend the tax cuts for everyone but millionaires. It is important, especially in times of fiscal crisis like now, that everyone pays his or her fair share of the cost of government. The tax cuts we have provided the very, very rich are unsustainable and must be rolled back to the levels of the prosperous 1990s to put our fiscal house back in order. Extending the tax cuts for the middle is a critical step to spurring economic growth and creating new jobs." Tacoma News Tribune

-McAdams supported the $787 billion failed stimulus package.

"We should always strive to have a balanced budget and a low national debt. In times of war or economic crisis, it may be necessary for the federal government to step in and spend significant resources to prevent catastrophe. When the crisis ends, however, it is important to put our fiscal situation in order, balance the budget, and pay down the debt." Tacoma News Tribune

The Tacoma Tribune has a long list of questions McAdams has answered which gives a good picture of where he stands on a lot of issues.

We all know the wealthy have not been paying their share of income taxes and that needs to be changed. The Bush tax cuts have contributed to our deficit. The wealthy use our resources to make money, this requires the use of government regulatory agencies and causes pollution just to name two costs the public pays for. They use our country, our economic system and our people to make themselves wealthy, they should be paying something back for that privilege. Social Security can be intact past 2037 if those with very high incomes pay more into the program. This program provides a guaranteed retirement for those who work and pay into it because people don't have the option of not investing for retirement or making risky investments. It is screw up proof. These post cards are designed to make it look like Scott McAdams wants to have a general increase in these taxes for working class and middle class people, that is a lie.

In my research about the current economic situation I realized it was impossible to really understand the current economic situation without looking at the Great Depression. The very interesting thing I found is the situation was very similar to what lead to the current "Great Recession", corrupt banking, corrupt economic practices, and post war (WWI). This all lead to deficits, collapse of banks, collapse of Wall Street, and loss of jobs. The Great Depression also involved the rest of the world, especially Europe, just like now. It was a huge part of the cause of WWII. Germany after WWI was bankrupt and forced to pay large reparations when they couldn't even pay to run their government and their people were starving. Their country was a shambles. The people were angry, hungry and in despair. They became filled with fear, had paranoid ideas, hated, found scapegoats to blame and went radically to the right. Large numbers of them supported a mad man. This is also very similar to what is going on in this country, but we have a mad woman instead of a mad man. We have history to teach us what to avoid in our current situation, but so many on the right have rejected anything intellectual or educational.

We had controls to prevent economic disaster from happening again after the Great Depression. The corporations, interests groups, particular presidential administrations and corrupt legislators over a period of decades with a concerted effort removed them. This has allowed most of the money to go to the top 2% of the wealthy. Even if they spend a lot of money, relatively they spend only a small fraction of it. If that money was distributed among the middle class/working people who have smaller incomes they would spend it, fueling the economy. This is essentially what is needed for capitalism to work. Without most of the money being circulated in the economy rather than just being hoarded and sitting static capitalism is dysfunctional. When money in the private sector is not keeping capitalism thriving the government can stimulate the economy by adding money in some way that gets into the hands of those who will use it to buy things. This gives the economy a boost. The stimulus was not failed. From what I have researched it is clear to me it did keep us from having a second Great Depression. We need a second stimulus, but the White House is reluctant to try this due to those on the right who hysterically criticize and lie about a tool which has helped keep our economy from completely collapsing.

9/29/10

ROBERT REICH SHOULD BE IN THE WHITE HOUSE WORKING ON THE ECONOMY

I have been doing a lot of reading about the economy and events leading up to the Great Depression. The circumstances that caused the Great Depression and the Great Recession are very similar, both involved banking and economic problems in many countries. For instance, Germany after WWI had to pay reparations with payments that were so high they could not afford to run their government after they had been devastated by fighting in a war. There were recessions and depressions on and off after WWI, especially in Europe, but also in the United States. Germany was hit the worst with hyperinflation. The people of Germany looked for someone to blame. Remember politics and economics go hand in hand. They had multiple theories split among the population of who was to blame, the Kaiser, the new government, communists, or Jews. In German society, an elite class had enjoyed many privileges and many resented them. Many skilled workers had been killed in the war, their infrastructure was falling apart, people were starving, there was a shortage of fuel, and a shortage of raw materials. Germany was also being shunned internationally.
Hardships such as starvation and lack of work cause people to become radicalized due to fear and anger. They had a lot of people swing both left and right. There were attempts at revolutions. The government used a group of right wing soldiers to try to get control. We all know what this lead to later. The people of Germany were very disillusioned and looking for hope. They did not understand what was happening; they were just trying to have a better life. Hitler made brilliant speeches, got the rich to pay for propaganda, and terrorized people with the paramilitary. President Hindenburg made Hitler his chancellor thinking he could control him and his followers. He took a negative destructive leader of people who fueled support for his movement by anger and hate into his administration.



Right now in the United States, we have a prison system this is overflowing, problems with police brutality, loss of civil rights, surveillance, disillusionment, radicalization, illogical blaming, racial hatred, immigrant hatred, and rich elite who have caused huge damage to the economy who also pay for propaganda. Our highest court has given the wealthy the power to control the outcome of elections in a huge way, we have people calling many established parts of our social nets socialism while working to destroy them. The United States was shunned by many countries for a war that should not have happened along with other acts of imperialism that have gone on for the last few decades. Many have been affected by loss of jobs, homes, lack of health care, inability to afford education and more. People are angry and afraid. The paramilitary in Germany attacked in many ways those who opposed Hitler. We have some similar activities in the United States by those who are against certain individuals or a party who are targeted, manipulated, have dirt dug up on them, false information circulated about them, tricks pulled, prosecution, ignoring of requests by government agencies, and courts that favor those with wealth and particular political leanings.
One of the biggest mistakes the White House has made is not giving the citizens enough information to understand their thinking behind the decisions they are making. They make the economy sound too complex and mysterious for the average citizen. Their explanations that the Bush administration caused the problems just sound like blaming on the right. Bush is not the whole story anyway, it started way before Bush. Information is distributed by those with a corporate agenda on some hack news show often by someone with just a high school diploma let alone a degree in economics. It has become abundantly clear that one reason for this is the White House focused on Wall Street instead of Main Street while campaign promises were broken. The corporations were the number one priority. From what I understand, the Obama administration did keep us from having a second Great Depression. Job plans for the unemployed middle class and working people were an afterthought. We are going to have huge unemployment for a long time. I understand President Obama was handed a bucket of crap from failures in the past, but telling people who have lost their homes and don’t have jobs to stop whining is not going to motivate people to follow him. It only makes people angrier. What is he thinking?

The economic and political conditions we have in this country now have historically caused huge problems for countries. For decades, mainly the Republicans and a few Democrats have caused the decline of the working class and middle class by their policies that deregulated and favored big business over the welfare of the United States as a whole. Our judicial system is designed to favor big business and the decline of labor unions took away the voice of the workers. President Obama has attempted to unite with the Republicans with their hateful, negative, illogical and often insanely selfish agenda. The result of this is Republicans have done everything they could to halt all progress for the middle class and working people by blocking reforms or watering them down. So, we have not gotten very far. The movement we all got behind when we got Obama elected was sabotaged and people have lost hope.

If the Republicans get back into the White House, especially the Tea Party brand they will destroy this country. People who did not normally vote in Germany came out of the woodwork, especially the young and women to vote for Hitler. The support for the Nazis was highest among Protestants and those in the rural areas. Older people who believed Hitler would restore traditional German values were behind him. Does any of this sound familiar?

I am not saying the Republicans are Nazis, but they have among their ranks some twisted people who are capable of great evil. These conditions are similar to what happened in Germany that allowed the population to be controlled by a power hungry insane man because they were looking for hope and change. When these conditions occur catastrophically bad things can happen. We have the advantage of knowing this, unlike the people of post WWI Germany. The United States and everything our constitution stands for could disappear. Let us all be conscious of this and not let this situation get any worse than it is. At this point, we can turn it around.

Robert Reich’s book, Aftershock, The Next Economy and America’s Future is amazing. He explains what has gone on to cause the recession and what we need to do to get a strong economy back in a way that a non-economist can understand. It is not a long book and an easy read. The recession did not happen because the middle class spent too much money and did not save. High debt is a symptom, not the cause of the recession. Our politicians who are more concerned with being reelected than the good of the country have opted for short term solutions rather than lasting solutions. It is not difficult to see that by eroding the middle class capitalism cannot work. It is also not hard to understand that if all of the money is concentrated with a tiny percentage of the population the economy is rendered dysfunctional. We have to have reform to survive and have a healthy economy over the long term.

Robert Reich should be in the White House helping President Obama straighten out the economy. For one thing, he is able to explain what is going on and why certain choices are made to the American people. Information and truth calms people and goes a long way to prevention of radicalization. People also feel a lot different about failure when they know the White House is on their side and doing their best, Robert Reich would engender trust. The point of a country is to work together for the benefit of the majority. Together we can do things we cannot do alone. We have not been building infrastructure for a long time and many on the right are trying to take away our social nets that help prop up the economy in difficult times. A true democracy follows through with the consensus of the majority and this is not happening.








“The needs of the many outweigh the needs of the few…”, Mr. Spock.



 
 

We are in danger of loosing America. Forces with an agenda are trying to take control. They say what they think people want to hear to get their support, but those following them don‘t understand what they really are. In my research about workplace bullying one of the consequences is those with an agenda other than the work at hand cause great dysfunction, corruption, abuse and waste of finances. The same thing happened with the leadership of our country over decades getting worse with time until the eight years of George W. Bush‘s chaotic presidency ended with the Great Recession. The real work of running this country for the benefit of all was hijacked.

Without education about what is going on people cannot get behind what we need to do to get our economy and political system back on a healthy track. A healthy democracy does not work without a highly educated population, not propaganda, but education. This helps prevent radicalization as well. Conspiracy theories and lies propagate behind a void of the truth. Where is that transparency we were promised.


Read Robert Reich’s blog post for today:
The President’s Backyard Discussion of the Economy (as It Could Be)

Robert Reich at a book signing in New York:








9/25/10

REPUBLICANS SAY NO & DEMOCRATS SAY THEY WON'T


We the people are going to have to turn this country around or the elite wealthy/corporations are going to destroy it. The White House and our current legislators with the exception of a few have just sat back and not taken care of business while the right blocks or waters down legislation. The conditions that caused what they are referring to as the great recession were very similar to the conditions that caused the great depression. After the great depression we had regulations to control Wall Street selfish pig behavior and we had taxes so the wealthy had to pay their share to prevent just the situation we are in now. Starting with Reagan and ending with George W. Bush the Republicans worked diligently (controlled by corporations) to remove laws that kept the middle class healthy. Without a healthy middle class capitalism does not work. The Republicans keep on waving the flag and waxing patriotic while they do everything they can to destroy this country. Apparently people are so ignorant now they have no idea what the United States was founded upon and somehow think giving the rich tax breaks so they can have more money is going to fix the economy. No, it just makes the rich richer. This is not rocket science people, if there is no money for the middle class to spend capitalism does not function. We elected Democrats because we wanted to save our country and undo the damage to our economic system as well as our civil rights. They have not performed. We got crapped on instead.


















I am trying to get through Robert Reich's book Aftershock: the Next Economy and America's Future this weekend.

From his blog:

The super-rich got even wealthier this year, and yet most of them are paying even fewer taxes to support the eduction, job training, and job creation of the rest of us. According to Forbes magazine’s annual survey, just released, the combined net worth of the 400 richest Americans climbed 8% this year, to $1.37 trillion. Wealth rose for 217 members of the list, while 85 saw a decline.


For example, Charles and David Koch, the energy magnates who are pouring vast sums of money into Republican coffers and sponsoring tea partiers all over America, each gained $5.5 billion of wealth over the past year. Each is now worth $21.5 billion.
*******
Democrats have decided to delay voting on whether to extend them for the top 2 percent of Americans or for the bottom 98 percent until after the mid-term elections.

Democrats have thereby given up a defining issue that could have enabled them to show the big story of the last three decades — the accumulation of almost all the gain from economic growth at the top — and to make a start at reversing it.


When will they ever learn?

http://www.amazon.com/Third-World-America-Politicians-Abandoning/dp/0307719820
http://www.amazon.com/gp/product/1576754146/sr=1-3/qid=1285424243/ref=olp_product_details?ie=UTF8&me=&qid=1285424243&sr=1-3&seller=