• Tips gratefully accepted here. Thanks!:

  • Recent Comments

    ProNewerDeal on Employment Index: Week Th…
    katiebird on Damn you, Ken Burns
    riverdaughter on Damn you, Ken Burns
    Sweet Sue on Damn you, Ken Burns
    r u reddy on Employment Index: Week Th…
    grayslady on Employment Index: Week Th…
    Monster from the Id on Employment Index: Week Th…
    r u reddy on Go Scotland!
    r u reddy on Employment Index: Week Th…
    r u reddy on Employment Index: Week Th…
    r u reddy on Employment Index: Week Th…
    cartencasey on Go Scotland!
    paper doll on Employment Index: Week Th…
    Sweet Sue on Go Scotland!
    Sweet Sue on Employment Index: Week Th…
  • Categories


  • Tags

    abortion Add new tag Afghanistan Al Franken Anglachel Atrios bankers Barack Obama big pharma Bill Clinton Chris Christie cocktails Conflucians Say Dailykos debate Democratic Party Democrats Digby DNC Donna Brazile Economy Elizabeth Warren feminism Florida Fox News General Glenn Beck Glenn Greenwald Goldman Sachs health care Health Care Reform Hillary Clinton Howard Dean Joe Biden John Edwards John McCain Jon Corzine Karl Rove Keith Olbermann Matt Taibbi Media medicare Michelle Obama Michigan misogyny Mitt Romney Morning Edition Morning News Links Nancy Pelosi New Jersey news NO WE WON'T Obama Obamacare OccupyWallStreet occupy wall street Open thread Paul Krugman Politics Presidential Election 2008 PUMA racism Republicans Sarah Palin sexism Single Payer snark Social Security Supreme Court Terry Gross Tim Geithner unemployment Wall Street WikiLeaks women
  • Archives

  • History

    September 2014
    S M T W T F S
    « Aug    
     123456
    78910111213
    14151617181920
    21222324252627
    282930  
  • RSS Paul Krugman: Conscience of a Liberal

  • The Confluence

    The Confluence

  • RSS Suburban Guerrilla

  • RSS Ian Welsh

    • Obama’s Speech on War with the Islamic State
      Let’s just quickly point out the obvious: air power only works if you have effective ground troops backing it up, or your enemy is easily dissuaded from war by losses of infrastructure. Otherwise it wrecks great destruction, and does little more. To put it simply, this strategy will certainly help those fighting the IS, but [...]
  • Top Posts

Re: Christie

I am not at all surprised that New Jersey is experiencing financial difficulties:

April’s income tax revenues from the state’s wealthiest residents are far less than expected, and the overall shortfall for the current fiscal year is $800 million below the Christie administration’s projections.

From a first hand perspective, I lived through Pharmageddon from 2007-2013 when lab after lab shut down, transferring a tiny fraction of the workforce to Cambridge, MA and leaving tens of thousands of highly skilled, well paid STEM professionals to rot in the vast suburban jungle between New York City and Philadelphia.  (Don’t believe me, you congressional lurkers out there?  Go look up the NJDOL stats for those years.  When you’re done cringing in horror at the waste of human and tax resources, you can tell those Pharma lobbyists to f^&* off the next time they whine that they just can’t find good help anymore and need to import from Asia.)

Of course, it wasn’t all Christie’s fault.  He wasn’t elected until 2009 (no, I didn’t vote for him.  I voted for Chris Daggett).  By then, the merry axmen in the executive suites were already hacking away at families and careers with abandon.  Living in New Jersey ain’t cheap and it gets damn near impossible when you lose your $100K salary to be replaced by a measly $2000/month in unemployment.  Someone besides me should see the link between the hemorrhaging of highly paid jobs and NJ’s fiscal problems.

Just think of all the tax revenue that was lost when Christie couldn’t be bothered to stop the carnage.  That’s tens of thousands of well paid jobs, *poof!*, gone in a flash.  Deval Patrick didn’t seem to have trouble attracting that (vastly reduced) pool of jobs, did he?  By the way, did those biotechs in Cambridge who promised to hire in order to get tax breaks actually hire all the people they said they would?  And why didn’t Christie try to make a deal with the pharmas to keep them in the state?  Was he just too busy putting his political adversaries in thumb screws?  Was he having too much fun killing infrastructure projects and slashing the NJ Transit budget in order to give hard earned NJ tax dollars to developers of a white elephant in the Meadowlands?

Anyway, Paul Krugman should stop wondering about why people are so enamored with Christie.  Well, some of us weren’t but then we weren’t taken in by Obama either and for roughly the same reasons.  Both politicians coasted to victory by playing on the emotions of the electorate.  In Christie’s case, he says what he thinks everyone is thinking.  Or at least he’s not afraid to verbally abuse the defenseless.  He gives his supporters status by picking on someone down the totem pole, separating them from their fellow citizens.  In Obama’s case, he was all about appealing to the aspirations of the insecure.  He called them “the creative class”, gave them status and separated them from their natural allies.  He made some vulnerable democrats feel all warm and gooey.  Yes, we can.

So, what can we learn from Christie and Obama?  My guess is that when it comes to politics, it’s best to be a cold blooded voter and ask very directly and persistently, “What have you done for ME lately?”  And when those pols start going for the emotional jugular to tell them to talk to the hand and walk away.

 

Krugman and I differ on Obamacare

This is sad.  I really like Paul.  We agree on so many things.  He’s one of the few people who is getting a clue about the myth of structural unemployment.

But with Obamacare, he’s hopeless.

I think it has to do with his own social isolation.  He lives in Princeton surrounded by some of the most successful individuals in the world.  Of course, all around him is the detritus of 6 years of dismantling of the R&D industry.  He only has to cross Route 1 to visit the now shuttered lab where I worked for 15 years. Some of the smartest people I know are having a really hard time figuring out what just happened to them.  But it’s unlikely that Krugman knows many of them, or any of the less accomplished people I know.

Here’s the part of Paul’s latest Conscience of a Liberal post on Obamacare that I resent most:

The current state of public opinion on health reform is really peculiar. If you’ve been following the issue at all closely, you know that the Affordable Care Act is one of the great comeback stories of public policy: after a terrible start, it has dramatically exceeded expectations. But hardly anyone seems to know that.

It’s easy to understand how that happens for Fox-watchers and Rush-listeners, who are fed a steady diet of supposed Obamacare disaster stories.

Um, I HATE Fox News and Rush Limbaugh.  I consider them to be on the same par as pneumonic plague.  They spread misinformation quickly and the effect is always malignant.  I don’t watch cable news of any kind and I don’t listen to Rush.  So, where could I have possibly gotten the crazy idea that Obamacare is a disaster waiting to happen??

Maybe it’s from my own data and observations.  Maybe it’s because the plans are not so great for the price.  Maybe it’s because some of us could afford the lousy premiums if we could get a subsidy but our incomes are too low to qualify (could someone please explain how that even makes sense??).  Maybe it’s the persistent feeling that Obamacare is leading to a less secure job market.  Maybe it’s because for some of us, it’s a choice between cashing in some of our IRA and facing a steep tax penalty to pay for our premiums or being forced into Medicaid where the state may collect our estates from our heirs when we are dead.  There are a million reasons why Obamacare might not be working so well for the rest of us, 40 million approximately.  If Obamacare is only reaching 7 million new subscribers, doesn’t that leave most of the 47 million uninsured still uninsured?

Here’s my take on Obamacare: It’s full of poison pills.  There’s just enough in it to help people with pre-existing conditions and some self-employed people to thrill the cockles of the liberal’s heart.  For everyone else, cost controls are not in place, there are no mechanisms to force competing carriers in a local market to cooperate with each other leaving the unsuspecting facing steep out of network costs, the unemployed are still mostly not covered (and they can’t afford the premiums anyway without a subsidy) and to get any kind of public option, aka Medicaid, you have to give up nearly everything you own and have spent your whole life working for.

This is not a good plan, Paul.  Most people do not live in Princeton or NYC.  They live ordinary lives with ordinary wages and this plan seems to have bypassed many of them.  Obamacare was cobbled together by a chief executive who seemed to want to wag his penis around instead of actually pushing for a well crafted piece of legislation.  Then it was severely compromised by Congress, first by Republicans who are malignant narcissists and then by Democrats who repeatedly sold out their constituents in a desperate attempt to prop up a guy who was not ready to be president.  Why the push to ram this extremely flawed piece of legislation through so quickly?  Why was it more important to save Obama’s ass than to ask him to do a good job?  Why aren’t enough liberals asking those questions?

Don’t insult us, Paul, especially those of us who are die-hard liberals who find the right wing utterly repugnant.  It’s not going to make Obamacare better and won’t help the party.  It reminds me of the days when anyone who saw through Obama in 2008 was called a racist.  It’s not fair and it’s beneath you.

I wouldn’t count on complacency

Krugman wrote a post on The Political Economy of Permanent Stagnation pointing out that the economy just plods along with high unemployment and sluggishness and people are just getting used to it:

But won’t there be an ever-growing demand from the public for action? Actually, that’s not at all clear. While there is growing “austerity fatigue” in Europe, and this might provoke a crisis, the overwhelming result from U.S. political studies is that the level of unemployment matters hardly at all for elections; all that matters is the rate of change in the months leading up to the election. In other words, high unemployment could become accepted as the new normal, politically as well as in economic analysis.

I guess what I’m saying is that I worry that a more or less permanent depression could end up simply becoming accepted as the way things are, that we could suffer endless, gratuitous suffering, yet the political and policy elite would feel no need to change its ways.

Given that I am sort of *living* the rude awakening from the American Dream and see many people in similar distressing circumstances, I can tell Krugman that there is definitely not complacency out here.  There’s anger, bitterness and resentment.  The resentment is not because we want to be rich or have two or three nice Lexus SUVs and a Pied a Terre in Lower Manhattan.  It’s that some of us can’t afford rent on a small row house in a 70 year old affordable housing development and pay for a health insurance policy on an exchange.

The administration should not get complacent and assume that the great unwashed masses out here have no idea what a raw deal they’re getting with Obamacare.  I am quite surprised at the number of people making a lousy $11/hour at their less than full time jobs who know better than some bloggers exactly how much they’re going to have to pay in taxes and penalties if they can’t afford a policy. I’ve met young healthy guys who can’t afford a doctor and physical therapist to treat their possibly dislocated, inflamed shoulders that they use every day to dig trenches.  They know exactly how the bonus class is screwing them.

All they need is a charismatic, take-no-prisoners, energetic politician to speak for them and there will be plenty of change.  That’s why the moneyed elite will fight back tooth and nail and smear any such politician who challenges it.  That’s why we have Obama.

They’re going to try to run a woman next time.  The Republican campaign against modernity will make her extremely attractive.  I don’t think it will be Hillary for the same reason that Krugman feels that stagnation is something we have gotten used to.  Hillary’s best chance was 2008. Her policy wonkiness, knowledge of the executive branch and vision would have been well suited to tackling the financial collapse and turning back the worst of the Bush policies.  That’s why she didn’t get the nomination in 2008.  The moneyed class didn’t want experience, knowledge and competency.

By the time 2016 rolls around, Republican policies will be more firmly set and it’s going to take someone who is bold enough to shake the foundations to really make a difference and roll back 16 years of stingy conservatism and bad financial and business decisions.  Can she do it?  Sure she could.  But the forces who kept her out in 2008 will either make her kiss their rings, in which case, she’d be useless to us, or they’re going to try to take her out again.  If the establishment Democratic party starts pushing her as their nominee genuinely, I’d have to question how much she’s been co-opted.  She’d almost have to run against her own party.  I haven’t seen that yet and given what a loyal Dem she is, don’t expect to.

Anyway, my point is that there’s plenty of discontent.  The people in charge might want to seriously consider what they’re doing.  The people I’ve been talking to are majorly pissed off right now at their prospects and we’re talking about manual labor all the way to the most educated among us.  A whole swath of Americans of all socio-economic levels are just waiting for a sign.  At this point, I don’t know if it’s going to come from the right or the left but when it happens, it’s going to be big.

One other thing: The bonus class shouldn’t sit on its laurels after the Voting Rights Act was gutted last week.  The discontent has spread so wide now that it is no longer confined to the generational poor and minority voters.

O-care

Paul Krugman’s latest column is about the mess of our national health care system.  He makes a good point about how social insurance programs make us freer people, allowing us to change jobs and start new enterprises without the fear of economic catastrophe.  But I’m not sure the so-called “jahb creators” care about economic catastrophes that happen to ordinary people.  To them, the only thing that counts is success.

I’ve got to admire Paul’s sunny optimism about Obamacare but, frankly, I think it’s a pretty fricking bad piece of legislation that didn’t rein in health care costs, locked us into a decidedly UN-free marketplace  with zero competition, and was only achieved by throwing women’s right to an abortion under a bus.  So, you know, there’s that.  I don’t particularly like Obama’s method of getting universal healthcare.

It beats me why he didn’t take his own state of Hawaii as a model for healthcare where employers can choose from several tiers of coverage for their employees, from basic coverage to more swank.  Oh, wait, that sounds more like what Hillary proposed during the 90s.  You know, the system that everyone whined was too complicated?

At this point, I would take even a basic plan.  My COBRA coverage runs out at the end of this month. I can’t complain about my insurance provider, except for the outrageous premium, even with group rates.  The coverage was superb. That’s what my French company negotiated for us. But getting insurance on the open market is fairly terrifying.  I will be looking into CHIP programs for the kid.  It’s going to be an adventure.  Spending hours and days trying to justify my need after the decades I spent as a hard-working taxpayer is not how I want to spend my time.

Nothing new under the sun

From Bring Up The Bodies, the second book about the life of Thomas Cromwell by author Hillary Mantel:

“In March [1536], Parliament knocks back his [Thomas Cromwell's] new poor law.  It was too much for the Commons to digest that rich men might have some duty to the poor. If you get fat, as some men do who profit from the wool trade, you have some responsibility to the men turned off their land, the laborers without labor, the sowers without a field. England needs roads, forts, harbors, bridges.  Men need work.  It’s a shame seeing them begging their bread, when honest labor could keep the realm secure.  Can we not put them together, the hands and the tasks?

But Parliament cannot see how it is the State’s job to create work.  Are not these matters in God’s hands, and is not poverty and dereliction part of his eternal order?  To everything there is a season- a time to starve and a time to thieve.  If rain falls six months solid and rots the grain in the fields, there must be Providence in it.  God knows his trade. It is an outrage to the rich and enterprising to suggest that they should pay an income tax only to put bread in the mouths of the work shy. And if Secretary Cromwell argues that famine provokes criminality, well, are there not hangmen enough?

The King himself comes to the Commons to argue for the law.  He wants to be Henry the Beloved, a father to his people, a shepherd to his flock. But the Commons sit stoney faced on their benches and stare him out. The wreckage of the measure is comprehensive. “It is ended up as an Act for the Whipping of Beggars”, Richard Rich says.  “It is more against the poor than for them.”

And with the newest proposal by Republican Representative Steve Pearce to test the pee of the unemployed for illegal drugs, the whipping of beggars never goes out of style.

Paul Krugman argues that there is some kind of psychological need to impose austerity, a moral imperative of sorts.  More likely, the wealthy have found a convenient way to convince politicians to project the blame for spilling the milk onto the table itself.

But let’s not kid ourselves.  This is the way of the powerful.  They do not want to worry about the lives of others.  That’s what makes power so appealing.  So, knowing that, our problem is not how we convince the powerful to think beneficently and empathetically towards other people.  Power makes them immune from such supplications.  Our problem is to convince ordinary people that there is power in sheer numbers.  The media has been very good at promoting learned helplessness.  That’s where they excel.  What we need is a movement that counteracts that message.

“No one can make you feel inferior without your consent” – Eleanor Roosevelt

Breitbart goes after Krugman. Yessss!

Breitbart, or whoever is running the show over there since the founder let his ire get the best of him, is claiming that Paul Krugman has filed for personal bankruptcy in the past.

OooooOOOooooo, the geeky professor with sharp wit is starting to get under the skin on the right.  He might even be making sense.  Is it possible that his message is getting through to the average American? And he’s so fricking persistent.  Well, we can’t have that.  Must. Smear. Relentlessly.

Excellent.  He’s making progress.

Bwahahahahahhhhh!!!

How you know the End is Nigh

We’ve been living with out of control capitalism, now in New Accelerated Format, for almost five years now.  It’s a quickened version of what’s been happening over the last 30 years.  Ever since Reagan, the media has bamboozled the public into giving the rich whatever they damn well please with the expectation that the rich will let us keep our jobs.  The evidence has shown that this does not work but you’ll have to read Krugman for the wonky stuff and teensy (or completely absent) labels on the x and y axises of his graphs.  I guess economists don’t need labels and units but it drives this chemist crazy.

I’m not here to talk about all the overwhelming evidence of wrongdoing that has been going on since 1980, or the massive layoffs that have probably permanently impoverished my generation or the fact that all of this has happened with the complicity of an older generation of seniors who thought the whole world revolved around what happened between women’s legs.  No, I am here to talk about the end times.

In this case, it will be the period of time when the strip miners of Wall Street have taken the top off the mountain almost completely and there is very little wealth left to extract and more and more middle class people are waking up to discover that “we wuz robbed” and there’s just no THERE, there anymore.  Where will the excess gobs of cash come from then?  I mean, after the obscenely rich have cornered all of the disposable income, and then some, in their underground lairs surrounded by their faceless, nameless goons in cold and modern chic livery, do they sit around with their heads in their hands weeping like Alexander that there is no more money in the world to conquer?

Heck no!

NOW, they get in on the payday loan scam.  It’s fricking brilliant!

Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.

Subrina Baptiste of Brooklyn says JPMorgan Chase allowed payday lenders to seize child-support funds in her account.

With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.

While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.

What are the chances that Barack Obama will look up from scheming with his 25 year old male senior advisors to “help” the Congress “win” in 2014 by focussing all of their PR efforts on a couple of distracting issues instead of fixing the problem of chronic unemployment and gross exploitation of average Americans, or directly challenging the Republicans with muscular Liberalism, and actually develop some sense of outrage that is strong enough to prod his justice department to actually, you know, DO something to the banks besides taking them to the back bedroom, closing the door and instructing them to wail loudly as he smacks the bed with his belt?

Yeah, I didn’t think so either.

By next year, when we’re all on Obamacare (sorry, Democrats, you’re going to have to own this one in an election year.  Hope you’re ready, but all indications are that you are not.) and trying to pay all of our bills on time, with a heaping side of gigantic health insurance thrown in for good measure, there will be an increasing number of us vulnerable to the siren song of the payday loan.  “Borrow now against your paycheck, pay 500% interest later!”  What could be more natural?

The big banks are investing in it heavily, wouldn’t you know.  So, this has to be one of the signs of the end.  Now that the MBAs have skillfully evolved the work place every two seconds in accordance to their bonus shortened attention span, AND severely crippled productivity by putting all the burden of getting things done on the shoulders of a few, and because they have so completely decoupled the cause and effect relationship of work with positive reinforcement, given the fruits of labor to the shareholders, closed the pension funds, and divested themselves of all responsibility to the people who, you know, WORK,  now that they’ve scraped every last penny out of every last bank account, it is now time to reserve all incoming pennies for their own purposes too.

All our monies are belong to them.

And then what?

I’m not sure but I suspect it ain’t going to be pretty.

Follow

Get every new post delivered to your Inbox.

Join 455 other followers