Tag: recession

When are we going to “Nation Build” in our OWN Nation?

When are we going to “nation build” in our own nation?

What are we waiting for?

Each bridge to fall down,

Every road to turn back to gravel,

Water mains to burst,

Grids to burn out?

To say nothing about the Investments in

Schools, and Computers, and Networks.

Small Businesses, Parks, EcoSystems, and Science?

and another thing, if “9-11 changed the world”,

when are we going to change our “soft targets”

to prevent the next 9-11?

All these Projects spell JOBS.

All these Projects are an Investment in OUR Future.

They are NOT a Hand Out.

They are Protecting Our OWN.

Another Labor Day has arrived, with FAR TOO MANY Citizens,

having FAR TOO LITTLE to Celebrate …

Gleaning: Bringing in the Sheaves

With so many people still out of work and depending upon unemployment benefits, I thought I might briefly explore one particularly ancient safety net program.  Republicans believe that welfare in any form swells the deficit and creates a system of entitlement, but I disagree.  Pointing back to the Bible, as I so often do, I’d like to discuss the particulars and modern day application of a very ancient custom.  Those who are up in arms about the very thought of welfare might benefit from a different means of framing the issue.

If this depression is egalitarian, I’m Lloyd Blankfein!

Robert Samuelson sez this depression recession is “egalitarian.”

It has been the most egalitarian of all the 11 recessions since World War II.  In various ways, it has touched every social class through job loss, pay cuts, depressed home values, shrunken stock portfolios, eroded retirement savings, grown children returning home-and anxiety about all of the above.

This graph of unemployment by income level sure the fuck doesn’t look “egalitarian:”

Photobucket

A Cautious Analysis Between US and UK Elections

One must be careful when invoking comparative politics.  If politics is indeed local, nothing could be a greater challenge than making sweeping generalities between different countries without understanding the full context.  Having said this, I have followed the recent UK General Election campaign with much attention and interest over the course of the past few weeks.  Those who follow politics to any degree often look for emerging trends which might promise some early clue to predict the future.  Much of what enraged and inspired Britons to turn out in relatively large numbers (provided they were able to vote at all), are the very same issues driving an anti-incumbent maelstrom, the results of which on our shores we will not fully understand until early November.  

30 Rock and the Arrival of Late Capitalism

Ordinarily I’ve avoided referencing pop culture in my posts, but forgive me again for doing so once more.  I’ve been inspired to write on this topic based on watching this past Thursday’s 30 Rock episode.  Its main idea implies that this naggingly persistent Great Recession was largely a result of those in big business who went for the easy, predictable sell and in so doing completely eliminated the idea of risk.  In the episode, a fictional company that has recently bought NBC’s parent company, General Election, has devised a scheme to generate an endless supply of guaranteed income–namely, hundreds of channels of pay-per-view internet pornography.  The revelation doesn’t sit well with Jack Donaghy, the Alec Baldwin character, a top ranking executive who is used to committing brainpower and elbow grease to creating innovations that sell, regardless of whether they are environmentally friendly, exploitative, gimmicky, or completely useless.  As he puts it, the new company has made his entire skill set obsolete and reduced making money to a robotic perpetual motion machine.

Many pertinent issues are raised in the episode.  Among the most notable is the suggestion as to whether or not consumerism and consumer capitalism ought to be viewed as some sort of necessary evil.  Jack Donaghy is frequently an unsympathetic character on the show, but he does represent the very American idea that buckets of money can be made for those clever and resourceful enough to come up with a product or concept the public will clamor for, regardless of how stupid, pointless, or wasteful it might be.  This has indeed been the criticism many of us on the Left have made over the years when we contemplate our obsession with the acquisition of possessions to no real positive end.   When played off the idea that even necessary evil has been corrupted by an unimaginative scheme which promises guaranteed rates of return and no possible margin for error, the larger question is whether our current economic downturn was, in part, caused by risk-averse thinking.  Have we exchanged necessary evil for unnecessary evil?

Instead of taking a chance and risking gaining either great wealth or a setback, it appears that some have ventured to circumvent the old ways.  Though I am certainly no fan of the capitalist system, it is my understanding that, based on its rules, anyone and everyone is given the opportunity to try their hand at making money.  Some efforts succeed and some efforts fail, certainly, but that’s just the nature of it.  Many have made fortunes and lost them outright and many have achieved much in the way of capital through the process of trial, error, and dogged determination.  But when that enterprising spirit and simultaneous revelation that one achieves when realizing that life itself is a series of ups and downs—when that become obscured by a desire to take the easy way out—then we all are simultaneously inhuman and poorer in the end.

Whether or not we believed that the American Dream was a dream deferred or a bad dream in the first place, it is interesting to ponder whether it has been royally short-circuited.  To be sure, there were certain economic theorists and historians who had long proposed that something like this was an inevitability.  Those in particular who espoused the theory of late capitalism would seem to be validated by the episode’s premise.  We who have long spoken out against the injustices and inequalities of the existing system have nonetheless learned to live with it, and the idea that a brand new enemy may have taken the place of the old is certainly worth contemplating.  Still, predicting the ultimate demise of capitalism is a bit like setting a date for the end of the world, if not the Second Coming.  As it is written, brothers and sisters, you don’t need anyone to write to you about times and dates.  For you know very well that the day of the Lord will come like a thief in the night.  

Why we are headed for a double-dip depression

  It may be the one-year anniversary of an amazing stock market rally, but economists are sounding rather pessimistic these days.

 A growing expectation of a double-dip recession is evident in a new poll of financial executives…the poll found more than half of financial executives predicting another downturn, and most expecting jobs recovery to lag into 2011.

 The predictions don’t end with just this poll. Nouriel Roubini is also warning of a second leg down, and even more disturbing is this report.

CBO: Stimulus DID create Millions of Jobs

There was some good news from the CBO today:

CBO: Stimulus bill created up to 2.1 million jobs

By ANDREW TAYLOR, The Associated Press – Feb 23, 2010

WASHINGTON — The economic stimulus law added between 1 million to 2.1 million workers to employment rolls by the end of last year, a new report released Tuesday by congressional economists said.

The nonpartisan Congressional Budget Office study also said the $862 billion stimulus added between 1.5 to 3.5 percentage points to the growth of the economy in 2009.

[…]

CBO projects that the stimulus measure to have a greater impact this year, boosting gross domestic product [GDP] by 1.4 to 4 percentage points and lowering the unemployment rate by 0.7 to 1.8 percentage points.

http://www.washingtonpost.com/…

And CBO is projecting even more good news this year, due to the Stimulus Jobs Bill …

The Danger of American Mythology

With the news that unemployment remains stagnant at 10% and that employers have cut more jobs than expected is a fresh blow to the American psyche.  Based on what I have informally observed, the latest stats are a more-or-less accurate portrayal of what I see on the ground.  I might even be compelled to believe that today’s grim news is in fact a bit sugarcoated, particularly among those under the age of thirty-five.  Friends of mine have undergone the ultimate of indignity and shame of moving back home, temporarily, they always conclude.  Returning to the womb does not exactly do wonders for one’s self-esteem, particularly when independence in the form of separate living arrangement are one of the metrics we consider essential to attaining that sometimes elusive construct denoted as “adulthood”.  

Jobs, jobs, jobs continues to be the story line that trumps all others, an issue unlikely to subside for a long while.  Aside from the political repercussions that have been debated extensively for months and will continue to be debated as we get closer to November, I admit I’m more interested in trends often sparsely covered by the major outlets.  We’ve seen the demise of certain industries and businesses that had been hanging on by a thread even in good times.  We’ve noted the strain upon government agencies and the many socialized component pieces that variously make up a bulk of our infrastructure–those which depend heavily on tax revenue.  What we have not really come to grips with as a people is how we best ought to respond to a period of reduced harvest over a protracted period of time.  I have read many pieces that detail that which is wrong, but few which propose a resolute, firm course of action for the future.  These may be unprecedented times, but it would be nice to see someone’s grand unifying theory.  

Alongside the latest doom-and-gloom headlines, the media tries its best to put a micro human interest aspect in play, but these sorts of character sketches at times resemble caricature sketches more than anything else.  While I appreciate a desire to show the personal impact of any massive crisis like the one in which we are still mired, it has always seemed a bit cloying to highlight the The Typical Hispanic Immigrant Family™, The Typical Single Parent African-American Family™, The Typical Asian-American Family™, and The Typical White Working Class Family™.  To be sure, the mainstream boys and girls tend to leave in-depth analysis to print magazines and NPR, but in a crisis this pervasive, one can’t help but wish they’d incorporate some degree of truly thoughtful analysis.  Instead we get two tiresome talking heads from opposite sides, each granted four minutes airtime each to devote to often-meaningless improvisational variations on a theme.    

The noted historian C. Vann Woodward wrote,

In an illuminating book called People of Plenty, David Potter persuasively advances the thesis that the most distinguishing traits of national character have been fundamentally shaped by the abundance of the American living standard.  He marshals evidence of the effect that plenty has had upon such decisive phases of life as the nursing and training of babies, opportunities for education and jobs, ages of marriage and childbearing.  He shows how abundance has determined characteristic national attitudes between parents and children, husband and wife, superior and subordinate, between one class and another, and how it has molded our mass culture and consumer oriented society.  American national character would indeed appear inconceivable without this unique experience of abundance.

A closely related corollary of the unique American experience of abundance is the equally unique American experience of success.  During the Second World War, Professor Arthur M. Schlesinger made an interesting attempt to define the national character, which he brought to a close with the conclusion that the American character “is bottomed upon the profound conviction that nothing in the world is beyond its power to accomplish.”  In this he gave expression to one of the great American legends, the legend of success and invincibility.

Woodward continues,

If the history of the United States is lacking in some of the elements of variety and contrast demanded of any good story, it is in part because of the very monotonous repetition of success.  Almost every major collective effort, even those thwarted temporarily, succeeded in the end.  American history is a success story.  They have, until very recently, solved every major problem they have confronted–or had it solved for them by a smiling fortune.

While on the stump, Barack Obama skillfully appealed to this particular strain of American mythology as a means of direct emotional appeal.  I do not believe that it was a tactic employed disingenuously, but at any rate it sought to advance the idea that our unique character was so high-minded and noble that, despite the struggle getting there, eventually we embrace social progress.  With this assertion came a very American, very unflinching belief in our perceived superiority and our own perceived invincibility.  But, following this line of logic, if we as a country can elect an African-American and seriously consider electing a woman as President, it would then stand to reason that the solution to revive a sick economy would be easily within our capabilities.  One would believe that with abundance would come a corresponding abundance of proposals, each novel and credible in its own way.  However, it should also be noted that casting a ballot and breaking a sweat are two entirely different matters, a notion not lost on Woodward.  One would hope that when this country elects a female President that we don’t inundate ourselves with self-congratulatory talk that the glass ceiling has finally been shattered forever.  It has proven to be quite resilient to even the largest of cracks.        

When the formerly Grand Old Party states its own interpretation of American success, it clothes its own mythology in terms of resolute military triumphs, battles won, enemies vanquished in heroic terms by complete unknowns and by generals who never lost a fight.  America is a magical place where everything is possible, but only to those who embrace a struggle between God and Satan, Good and Evil, dark and light, impurity and purity.  When the system fails, it writes apology after apology for the failures and corruption of capitalism, pointing to the inevitability of its eventual rebirth.  It is as sure of its own infallibility and superiority just as surely as Marx was in thunderously concluding that the bourgeoisie would someday prove to be its own grave-diggers.  If either were any help now, I’m sure we might be seriously considering them.

What we need, then, is to truly act as though we really are what our mythology triumphantly proclaims.  Setting aside irony and cynicism for a moment, we have the power within our grasp to put into place a new American mythology, one that is comprised of more than just jingoistic platitudes or narcissistic back-patting.  But what it will entail is effort and a willful desire to scrape off the rust, even when doing so is uncomfortable and puts us out of our comfort zones.  Now more than ever, we ought to be the country the rest of the world thinks we are.  Now more than ever we ought to live the notion that we really meant it when it was written that all are created equal, that we were a welcome respite and land of promise to our tired, our poor, our huddled masses yearning to breathe free, and that our exceptionalism is not a club quick to bludgeon or a license for arrogance, but instead the source of healing and solution of a sort that is profoundly lacking today.  

Must See Movie: “The Secret Of Oz”

Perhaps you’ve heard of the movie “The Money Masters” before by Bill Still. But regardless, it is well known that our U.S. Economy is not really getting better — nor will it ever get better.

How could it? That is, until and unless we solve our astronomical debt problem, and stop borrowing money at interest, just to pay off the never ending massive pile of interest from our old debts — all of which can never go away under our existing system because the very creation of money itself is also debt generating ( as the crooked Federal Reserve System was designed [Rothschilds, Rockefellers, Morgans]).

Some people, namely Ron Paul, have talked about a return to a Gold & Silver based monetary system.  But this solution, while constructive for discussion, would appear to be incomplete. For we see even today that the price of Gold and Silver are greatly manipulated in a corrupt manner by the various Central Banks, the IMF, and various Governments. Therefore, how could either Gold or Silver possibly offer any stability when it is itself under the domination and control of “The Money Masters“?  For example, given that size of the U.S. Money Supply has quadrupled in just the last few years alone, it would then logically follow that the correct price of Gold relative to the watered-down U.S. Dollar should already be in the vicinity of $5000/OZ.

The Simple Joys of a Reduced Christmas Season

While I and millions of DC residents are cleaning up after a huge snow storm, I look out my window this morning and notice strangers giving aid and assistance to drivers of cars stuck out in the wintry mix.  Stodgy, suspicious, ponderous Washington has momentarily set aside its default setting to lend a hand.  It is only when events this big and massive disrupt the status quo that this city shrinks in size and shared humanity begins to creep into the proceedings.  DC is a city full of cross-currents and diversity, so it is rare that anyone is truly on the same page with another for very long.  A Type A city ruled by Type A people means that often everyone is in a hurry going nowhere for no good reason, utterly consumed with their work to the detriment of every other facet of their lives.  Though retailers will undoubtedly even lose money here in these crucial days leading up to Christmas, I can’t say that I am entirely saddened by the development.      

Had this been any average year, the media would have run half a dozen stories (or more) gently chiding us for again, yet another year, completely destroying the meaning of the Christmas season.  Many of us would assume our time-honored roles, mournfully nodding our heads up in down to signify that we agreed, but could find no solution to stop the orgiastic aspects of capitalism from overrunning the most important of holidays.  A recession ought not only provide purely negative consequences.  If we can learn from it, then all is not lost.  If we are to face discomfort and pain, my hope is that we can understand that simplicity is a virtue, not a hindrance, and that accumulating possessions is a bit like accumulating inches of snow.  In the beginning, it’s fun, but after a while, it begin to pose a serious problem.  Not only that, others who believe in the grass is greener principle have a tendency to envy accumulation without understanding its notable drawbacks.

I personally am enjoying fewer crowds, less traffic, and less panicked looks.  That it took a weakened economy and with it the loss of buying power surprises me not a bit.  If the free market promised freedom from producing more problems than it fixes, I would be wholeheartedly in its corner.  Some of the strongest people I ever met were those of my grandparents’ generation, who had faced a Great Depression and a World War, and whose iron resolve and stoic attitude showed the results of having gone fifteen rounds with hardship and tragedy and emerged stronger than steel.  No shrinking violets were they.    

As for these times, the only time I saw anything remotely similar to the traditional Christmas insanity was Friday of this past week, shortly before the snow fell, when thousands upon thousands of residents in our nation’s capital rushed madly to scoop up enough provisions and finish up their seasonal shopping.  Everyone seems to be cutting back this year and I certainly am as well.  Some have mentioned that the tinsel and electric excitement that requires a robust pocketbook is lacking, making this a bummer of a Season’s Greetings, at which point I suppose I have to note that I have grown so cynical about Christmas reality that I have embraced a kind of deliberately sparse rendering.  All that twinkles is not gold.  Some might assume that less money in the bank is the true War on Christmas™, though I believe that to be the overwhelming opinion of bankers.          

The generation of my parents’ parents have been romanticized as “The Greatest Generation” but while the moniker is fitting, I saw nothing particularly superhuman about them.  They were indebted to the same flaws as humanity has displayed ever since humans began to walk upright.  If we faced the same challenges and abject perils as they, I am firmly convinced that we too would respond the identical way they did.  The human body and the human mind have a way of being incredibly adaptive to adversity.  It is fashionable in some circles to take pot shots at Baby Boomers or their children out of some desire to shame us all into acting properly or that we might better appreciate that which has fallen into our lap, but I will refrain from that line here.  We have been incredibly fortunate, certainly, but neither do I think beating us over the head with our privilege is much of a solution.  My hope is that we will retain the memory of what it felt like to not revel in excess and that we will apply those examples to our own lives and to the lives of those who we directly influence.    

If this were truly some pitched battle against all that is sacred and holy against Christmas, then the true enemies would not be a secular society gone wildly astray, having embraced the confusion of political correctness.  Instead, the enemies would be those people and things which fool us into thinking that we are the center of the universe and that there is no need to take into account the lives and struggles of our fellow beings.  As I said before, 364 days out of the year, this city runs on the twin forces of preoccupation and workaholicism, but it has only been now when the roads are still largely impassible, many businesses and places are still unreachable or closed, and public transportation is barely functional that we recognize the folly of our ways.  Still, I imagine a thousand nervous fingers madly punching keys on their Blackberries, expecting a fresh batch of places to go, people to see, and things to do.  

I know personally of many people who believe that bringing their work home with them aids and assists those in need.  Worthy causes exist, of course, and the belief among many is working themselves to death provides help to those who would otherwise not have it.  I know others who have built their entire self-esteem, self-image, and self in their vocation, at the expense of any other facet in their life.  This is tragedy to the extreme.  We lose our humanity when we become robotic and monolithic.  DC needs a snow day like this to re-think its priorities and my hope is that it doesn’t take a series of blizzards, both literal and figurative, to change the conventional wisdom.

Officials and Experts Warn of Crash-Induced Unrest

Officials and Experts Warn of Crash-Induced Unrest

This is one of those entries where I’m going to basically just send you over to the link so you can check it out for yourself.  The site itself has become a daily must-visit for me, and should be for others interested in what’s really going on.   I don’t know who this guy is, but he’s really really good.  

His entries are so chock-full of links that cutting and pasting what he’s saying is almost pointless, unless you include all the links (and if anyone knows an easy way to do that, I’d love to learn it!).

Anyway for all the Larry Summers MORONS out there who think that sunny days of economic lushness are right around the corner, well, this is something of a buzz-kill.   (the same guy has an awesome piece that just DESTROYS Summers).

Anyway, here’s a sample:


Today, Moody’s warned that future tax rises and spending cuts could trigger social unrest in a range of countries from the developing to the developed world, that in the coming years, evidence of social unrest and public tension may become just as important signs of whether a country will be able to adapt as traditional economic metrics, that a fiscal crisis remains a possibility for a leading economy, and that 2010 would be a “tumultuous year for sovereign debt issuers”.

Dark days for the Unemployed

There’s nothing like having a good job.

So WHY is Corporate America so keen on giving those good jobs to someone other than Americans?

The Geography Of A Recession 2007-2009



http://www.youtube.com/watch?v…

Of course, the answer to that WHY — is to increase their bottom lines, whatever it may cost their country in the long run.

It’s just Business, right?

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