Walk with me a while and imagine you are mad. Crazy. Insane. It’s an interesting sort of insanity–you see the world as something other than it is. You are dead convinced that people are out to get you, but these people have almost no means to harm you and fear your retaliation greatly, because you’re a powerful person and they are weak.
You believe that you are hale and hearty; but in fact you’re ghastly, obese and ill. You think you’re rich, but in fact you’re poor. You think you have the best doctor around, but in fact your doctor is worse than almost every other doctor and charges 50% more than them. You think you’re tough, and you certainly haven’t let the fact that two ninety pound weaklings seem to be able to stand up to you get in the way of that.
You think that you have the most advanced technological toys, that what you have is the best, and once you did, but these days everyone else seems to have more advanced stuff.
The illness goes deeper though, a deep decay in your brain. The parts of your brain that make most of the decisions for your body think everything is wonderful. They seem only able to take in sensations from the taste buds these days, and for the last thirty years you’ve been on a rich diet. So they think everything’s great. Your once lean body, packed with muscles, has been replaced by a flaccid one, paunchy and fat, but somehow the key parts of your brain don’t know that. They don’t feel your sore back, they don’t hear the broken down breathing and they don’t see the gut hanging over your belt.
The you I’m referring to, as I’m sure many have figured out by now, is the US. For years I’ve been writing for the US and observing it carefully, and I’ve found it one of the most interesting problems I’ve encountered in my life. Because America and Americans are very unpredictable. Now, of course, the first thing I thought was "it’s me," and in a sense, that’s true.
Yet, here’s the thing, I have a very good record of predicting what will happen in Somalia, or Afghanistan, or Iraq. And when I get it wrong, I can look back and easily figure out why. Yet I’ve never visited any of those countries and really, know very little about them. On the other hand I grew up imbibing American media, know American history well, have visited America a number of times and spent 8 years in jobs that required me to deal with multiple Americans daily.
Odd. Very odd. And something I’ve discussed with other foreign observers of American society and politics.
The first clue to what was wrong came around the time of the Iraq war. It was obvious, dead obvious, to everyone outside of the US and to US citizens who were spending a lot of time parsing news, that the war was a joke and that Saddam had no nukes and was no threat to the US. Most Americans, however, didn’t get that. The reason, of course, was propaganda.
Fair enough. Every country whips its citizens into war hysteria with propaganda. But what was truly remarkable wasn’t that, it was that somehow the majority of Americans, over 70%, thought that Iraq was behind 9/11. Iraq, of course, had nothing to do with 9/11. Nothing.
Remarkable. Americans went along with going to war with Iraq then because they thought Iraq had attacked them and had nukes and could attack them again. A complete propaganda tissue of lies. But if you believe it all, well of course Iraq needed to be attacked.
What looked to the rest of the world as crazy was entirely logical. It was, however, still insane. If I see a tentacled monster from the fourth dimension attack me and I respond by grabbing a knife and slashing apart my next door neighbour who’s waving at me, well, I had a logical, coherent reason for what I did, but I still murdered him, and I’m still insane.
This is the first type of insanity in the US and it runs deep. I often feel like I spend more time correcting outright lies, outright propaganda, than anything else. Just this week I had to explain to a left wing blogger (who should know better) that single payer health insurance is cheaper and gives better results than private insurance system. Now in the US this is somehow still in doubt, but that’s insane–this isn’t in question, every other western nation that has single payer insurance spends about 1/3 less than the US and has as good health metrics or better either in most or all categories. This isn’t something that’s up in the air; this isn’t something that is unsettled. This is a bloody FACT.
Americans think they are the most technologically advanced society in the world, yet the US does not have the fastest broadband, the fastest trains, the best cellphones, the most advanced consumer electronics (go to Japan and you’ll see what I mean) or the most advanced green energy technology.
In the primary season Ron Paul was repeatedly cut out of media coverage and John Edwards was hardly covered. The majority of Americans thought that Edwards was running as the most right wing of the Democratic candidates. Huckabee was constantly called a populist when his signature tax program would gut the middle class and slap the poor onto a fiscal rack.
And when all is said and done, politicians are still running on slashing taxes and having that make up for itself, while the US runs a balance of payments higher than any other country post World War II has ever done without going into an economic crash.
That’s one type of insanity–thinking the world is something that it isn’t.
The second is worse, in a sense. When Diamond wrote his book on why societies collapse he came to the conclusion that it occurred when elites weren’t experiencing the same things as the majority of the society–when they were isolated from the problems and challenges the society was facing.
For 30 years ordinary Americans haven’t had a raise. And despite all the lies, Americans are beginning to get that.
But for the people in charge the last thirty years have been absolutely wonderful. Seriously, things haven’t been this good since the 1890′s and the 1920′s. Everyone they know–their families, their mistresses and toyboys, their friends–is doing well. Wall Street paid even larger bonuses for 2007, the year they ran the ship into the shore, than they did in 2006 when their bonuses equalled the raises of 80 million Americans. Multiple CEOs walked away from companies they had bankrupted with golden parachutes in excess of 50 million. And if you can find a Senator who isn’t a millionaire (except maybe Bernie Sanders) you let me know.
Life has been great. The fact that America is physically unhealthy, falling behind technologically, hemorrhaging good jobs and that ordinary Americans are in debt up to their eyebrows, haven’t seen a raise in 30 years and live in mortal fear of getting ill–because even if they have insurance it doesn’t cover the necessary care–means nothing to the decision making part of America because it hasn’t experienced it. America’s elites are doing fine, thanks. All they can taste, or remember is the caviar and champagne they swill to celebrate how wonderful they are and how much they deserve all the money federal policy has given them.
This is the second insanity of the US–that the decision making apparatus in the US is disconnected from the results of their decisions. They make sure they get paid, that they’re wealthy, and let the rest of society go to hell. In the end, of course, most of them will find that the money isn’t theirs, and that what they’ve stolen is worth very little if the US has a real financial crisis.
The third insanity is simpler: it’s the wealth effect. At the end of World War II the US had about half the world’s economy. Admittedly that’s because Europe had been bombed into oblivion, but even when Europe rebuilt the US was still far, far ahead. The US was insanely rich and powerful. See, when you’re rich you can do stupid and unproductive things for a long time. There are plenty of examples of this but the two most obvious ones are the US military and the War on Drugs.
The War on Drugs hasn’t reduced the number of junkies or drugs on the street in any noticeable way. It has increased the US’s prison population to the highest per capita level in the world, however. It has cost hundreds of billions of dollars. It has gutted civil liberties (the war on terror is just the war on drugs on crack, after all). And after 30 years does anyone seriously say "wait, this doesn’t work, it costs billions of dollars and it makes us a society of prisons?" Of course not, if anything people compete to be "tough on crime." What’s the definition of insanity, again? Doing the same thing, over and over again, and expecting different results?
Then there’s the US military. It costs, oh, about as much as everyone else in the world’s military combined. It seems to be at best in a stalemate and probably losing two wars against a bunch of rabble whose total budgets probably wouldn’t equal a tenth of one percent of a US appropriations bill. And it is justified as "defending" America even though there is no nation in the entire world which could invade the US if the US had one tenth the military.
But the US could (not can, they are now unaffordable, but could) afford to have a big shiny military and lots of prisons, so it does. Lots of people get rich off of both of them, lots of rural whites get to lock up uban blacks and lots of communities that wouldn’t exist otherwise get to survive courtesy of the unneeded military bases and prisons which should never have been built.
Insane–believing things that aren’t true.
Insane–decision makers are cut off from the consequences of their decisions and in fact are getting reverse feedback, as things get worse for most Americans and as America gets weaker and poorer, they are the richest they’ve ever been.
Insane–so rich that no one will stop doing things that clearly don’t work and are harmful, because people are making money off the insanity.
All of this is what makes predicting the US so surreal. It’s not just about knowing what the facts are and then thinking "ok, how would people respond to that?" You have to know what the facts are, what the population thinks the facts are, what the elites think the facts are, who’s making money off of it, and then ask yourself if these facts are having any real effect on the elites and if that effect is enough to outweigh the money they’re making off of failure (how many of them have children serving in Iraq? Right, not urgent to fix.)
And then you have to go back to the facts and ask yourself "what effect will these have even if they’re being ignored." Facts are ugly things, they tend not to go away.
All of which makes the US damn near impenetrable, often enough even to Americans.
But here’s what I do know–you can get away with being nuts as long as enough people are benefiting from you being insane. When the credit cards are all maxed out, when the relatives have stolen even the furniture, suddenly all the enablers go away and the kneebreakers or the men in white pay you a visit. At that point you can live in the real world, or you can go to the asylum.
I wonder which way the US will go?



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Ian!
Hi, Ian!
hey
Amazing writing, Ian. Such a large mirror for us to look into – not pretty.
Nail, meet hammer. Call me crazy.
What a great essay Ian. Thanks
Key post. And the Democratic support of the bankrupcy bill – by Hillary and others- is a key part of this brought into the present.
Ian, it’s always so hard to argue with you, stop making sense!
Spotlight and Digg it!!!!!
You hit the nail squarely on the head.
Brilliant post, Ian!
And let’s be very, very clear about one additional point: the mainstream print and broadcast journalists who were envisioned by the Founders as providing a necessary clarifying and illuminating function either already are, or wish to become, members of that elite, and thus have a positive incentive to obfuscate reality.
We have a new privately-owned hospital in my area, the Mat-Su Regional Health Center. It has just been bought by a lower-48-controlled corporation. The figures haven’t been published yet, but an accountant employed there has told me the corporation is taking $100,000,000 out of our state per year in PROFITS. That’s out of an area between two towns Palmer and Wasilla – with a total population of about 15,000. So in ten years, this corporation will have removed a billion dollars from our rather small local economy. This is TOTALLY FUCKED!
Good gawd, Ian! This is the most inspirational, logical, and forthright post I’ve read in a long time. How right you are about America and the insanity that has ensued over the years!
This is why I am going to voting my principle this year. I know Dennis Kucinich doesn’t have a snowball’s chance in hell in getting the nomination, but I am going to caucus for him here in Maine in February anyways. I’m going to talk to the Democrats in the room about where we’ve come over the past eight years and why I can’t trust them to make SANE decisions about who is best to run our country. I know, I know, I will probably be ridiculed, but it’s not going to matter to me. I am going to say what I have to say and I’m going to say it as if my life is going to end tomorrow. I will tell these Democrats that my 2nd vote will be uncommitted, because all I see with the top 3 Democratic candidates is more of the same…and yes….even with Edwards, even though he’s been labeled as the biggest progressive running!
After all is said and done on Caucus Day here in Maine, I will await the results of who the Democrats have chosen to be on the ballot this year, and immediately afterwards, I will unenroll from the Democratic Party, and will remain there until I see my party actually reflecting the values I hold dear to my heart. It could be a long time coming, because as you’ve pointed out beautifully above in your post Ian, Americans aren’t being truthful with themselves. They’re believing the propaganda. They’re too scared to take a principled stand, because their neighbors aren’t. Letting the country become a ragged doll is never noticed by these people because their conscience has gone insane with the idea that since their neighbors are okay on the surface, then they must be too.
Since the squabbling in the last thread was worse than an associate professor’s faculty lounge, might we have a little bit of that old fashioned FDL Kumbaya in this one?
Geez, Ian. What a piece. I think we’ll live in the real world. It’s going to be a fight, though.
A masterpiece. Thanks, Ian.
Looks like some tough love on the way.
And the new private jails (encourage more inmates) and firefighters in Ca. (encourages communities not to have needed equipment/personnel). And since Blackwater increasingly is taking on related roles it is doubly problematic.
Right on, Ian!
The elite sold the American dream to the people by telling them they could buy it for free. Here, take this card and if you buy enough little things with it…, you can buy bigger things and live just like us….Here, buy this adorable house for $160,000 (shhhh, $576,000 of your hard earned “cash”)…..$1600 per month and it’s yours!
Let’s see…$1600 X 12 X 30….$576,000…yup, you just bought that $160,000 house for $576,000 cash….and on and on and on for everything…Oh, and if you can’t pay for it, they get it back and resell it to some other sucker, because they own it, you don’t.
Amen, Ian. Amen.
I understand how you feel. Personally, my plan is to stay with the Democratic Party and work to move it in a progressive direction.
The Democratic Party belongs to us and I won’t leave it so the Repubs can pick up the scraps. This is ours to fight for and we will.
Perhaps now is a good time to recall Steve Gilliard’s “Fighting Liberal” post, which climaxes thusly:
http://stevegilliard.blogspot……w-ive.html
Insanity.
How difficult it is to deal with.
I met a young woman who came to my church this morning.
I talked to her afterwards.
She’s homeless. No money. Her boyfriend was arrested two days ago.
It wasn’t easy to talk to her, ’cause she was nodding out about every five minutes.
Maybe I’m Insane. I stayed and tried to help her.
Jebus, Ian, you are making me feel like a helpless Palestinian.
Hi Everyone. Had a phonecall so I’m late to the thread. *waves to firepups*
Thank you Ian you have described the same things I see in our society.And I am worried not for me but for my children and grand children. Will they be able to pursue the American dream of generation after generation doing better that their parents as has happened for so long. Will they be able to get a semblance of a good education? will they be able to go to college? Will they have health care…. so many questions of doubt run through my mind. It is disheartening… we as a country have lost our way and I don’t have any confidence that the direction of the road of history will be righted.
We have a chance in the up coming election if and only if we get a leader who truly can lead this country onto a new road as did FDR… Our opposition has been chipping away at the “New Deal” since it was incepted!
Muich needs to be done and I only hope our direction can be changed so that the wealth of the nation can be harnessed to better society… free of the petty racial/wealth divide.
How to do that will take a good strong moral leader. With a citizenry who understands that the common good comes first and the just for me attitude that has permeating of society for the past thirty years since Ronald Regan sold the country a bill of goods has destroyed all that is good and moral in this country of ours!!
Not insane at all. Sometimes people need a kind word more than anything else just to feel connected. I think you did a very good thing.
*waves back*
Real clear point. The press has always had its issues, and been subject to fads and manias and propaganda; but the key thing about them is that the actual reporters and most of the editors used to not long belong to the same class as the people they covered–they didn’t go to the same schools, they didn’t socialize and they didn’t intermarry.
“Journalists” becoming part of the elite was the end of any likelihood that the fourth estate would hold the other estates up to the light of day, because they no longer see them as “other”.
Great post Ian! If you were a US citizen I’d vote for you :)
It was heated but I actually gained from it.
I had the same attitude last year, PhysioProf, but from what I can tell the Democrats don’t seem to want change. Hell, they don’t mind giving Warmonger Bush everything he wants and the top 3 candidates right now, I don’t see them steering us off the current path.
Of course, this is my opinion. I know it’s not shared by many. ;-)
I called a couple of shelters and got the “211″ phone number for the LA County Referral Help Line. Called that and explained the situation. They checked their sources and gave me the address where the woman could go and be picked up and taken to a shelter for the night.
I drove her and gave her some money to get something to eat.
It did cross my mind that she could have a weapon in her backpack, but, oh hell, she was nodding and I wasn’t, so I figured I probably had the advantage. :)
I remember hearing years ago that the Australians called such long-term purchase arrangements the “never-never plan.” Don’t know if they still do so, as I imagine they’ve been at least somewhat co-opted by the consumption society.
Brilliant summation, Ian. Even if it is incredibly depressing–not a surprise, you understand, but oh so depressing to see it in black and white and irrefutable.
Neither of you are insane, I’d say. She probably needs a week of regular sleep and regular food in a warm place. And kindness is rarely insane.
Yup. In some respects California is the worst. They had it in thier hands, but they didn’t want to pay taxes. Now it’s rotting in front of thier eyes, and even the houses they valued more than their children are dropping in value.
Reap as you sow.
There is an invisible being in the sky who can read my thoughts and give me advice. Am I paranoid? No. I’m a member of a church. My group says all the other groups are wrong. My group says that our god is the only one who is right and that we shall prevail in convincing the whole world to worship our god. When that happens, our god will join us and rule the earth. Is that crazy?
Thanks, Ian.
I asked her what she was on…she told me methadone and zanax. Explained the zanax was for her anxiety. That’s understandable.
It was easy for me to be kind, once I crossed the threshold of fear and confronted her.
Very, very well put. Excellent post, Ian.
And yes, I can “certify” insanity. And you are correct. Insanity is the right word for this.
Delusional.
The repubs in particular have fed the nation delusions. And all too many eagerly swallowed the delusions.
Wish I had a treatment here that would work. I think the “bad medicine” is this recession. Hopefully some will wake from their delusions.
This is your brain on drugs…..
Don’t most religions teach the same?
I don’t find this post depressing.. I find the truth to be a breath of fresh air. It’s a shame the obvious has to be written by friends watching from abroad. That said, what a friend we have in Ian, no?
And KayInMaine, I am with you one hundred percent!
Why am I all of a sudden thinking of the French aristocracy?
I think they all want the oil. That is, the oil companies have convinced them that the US should stay in Iraq to get the oil for them (at taxpayer expense) so the oil companies can sell it to us.
1,731 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen Ian Welsh and the Firepup Freedom Fighters:
Great post…yes we are (collectively) insane because we see the reality of our delusions and know what we must do to correct our direction but are afraid of the reality more than the consequences of living the lie.
We have only one recourse and that is to gather forces around the anti-war and progressive reality and storm the Democratic Convention, in order to scare the nominee and the hierarchy into doin’ the right thing. I really feel that even if, like the 1968 convention, the Democrats lose the White House as a result, we won’t lose the Democratic majorities in the Congress and may even end up with a more progressive legislature that will understand how to wield power in opposition. We can’t quit and we can’t support Mrs. Clinton or Barak O’Lieberman…we can only force them to acknowledge that without us they lose and if their personal ambition is stronger than their obligation to their bosses we ken still win this thing. Otherwise this country is movin’ into a prolonged Dark Age and we’re gunna take the rest a the world with us.
KEEP THE FAITH AND PASS THE AMMUNITION…I GOTCHER BACK,GOD DAMMIT, NOW YOU GET MINE!!
Yeppers. Right you are again.
There’s a cool website called religous tolerance.
It shows comparable lessons/wisdom/scriptures from different religions.
Love and Service are things that all religions teach.
I’m pretty sure.
First thought that came to my mind…
Well done. Very well done.
This is turning out to be a very depressing day.
Good for you, Demi, for helping that poor woman.
Demi, I don’t know if you will ever speak to that young lady again, but if you do, please tell her not to quit xanax immediately.. Doctors frequently fail to mention this deadly consequence… it can and will kill a person if dropped instantly. I am very lucky to be alive to tell the story today.
I agree. Not depressing. Rather, encouraging to face facts. I think, likewise, Americans have a history of facing facts squarely and knuckling down to get the job done.
You got it. Therein lies the rub. Its a huge problem. My religion influences the world’s poor not to use any methods of birth control – in order to make as many babies as possible – even if the babies will starve to death or die from disease.
There are a couple of business writers worth reading, Gretchen Morgenson and Floyd Norris of the NYT were calling out the mortgage meltdown in the middle of last year. Both have been saying that the corporate honchos are wildly overpaid, and explaining how that happened.
I will agree that most of the smart stuff, like Piketty-Saez, is rarely mentioned by the MSM.
Yep. It’s the media, stupid.
I came to adulthood and political awareness in 1980’s Britain, during the Thatcher “revolution.” At that time the vast majority of people read newspapers, who parroted the party line.I see exactly the same thing with talk radio and tv bobbleheads here.
The only thing that saved us was the BBC.
BTW, I am 100% with you. Super post, but don’t expect anyone to change their mind.
I finally heard on one of these DFH blogs (actually the only “news” I read anymore), the explanation for at least a half a century of this self-delusion: PTSD coming out of WWII. That surely defined my home and family, and my Dad was not in actual combat. (To be fair to him, he was on a sub, which didn’t need combat to traumatic.)
Think of the paranoia, obsessive need to defend themselves against unseen enemies, false bravado with hysterical fear of being seen as weak, etc, etc, etc, etc……. that has defined the US (and USSR) since then.
In terms of facing the economic facts, I have really found Agonist’s coverage to be extremely deep, detailed, yet understandable by someone who has no formal economic training. Stirling Newberry, Numerican, and Ian have amazingly dissected what is going on with the US economy in a global context. Numerian’s post yesterday explains in very clear terms where we are likely headed in short order:
http://agonist.org/numerian/20…..who_s_next
Thank you, ES.
Good information to be aware of.
I very well might speak to her again.
And, I will tell her that a friend asked me to share that with her.
The power of the internet….caring and sharing.
She and her (now in prison) boyfriend were there last week.
People were very kind to both of them and she returned today.
We can hope.
Great post as usual, Ian. Now if you could just explain to me how virtually all the Democrats lost their spines and their minds en masse, I’d sure appreciate it. Why do they insist on staying in the car as it goes over the cliff? Insanity!
Here’s Robert Greenwald’s War on Greed.
Repubs are too smart for that. They got rid of the fairness doctrine and packed the Corporation for Public Broadcasting board with partisan hackfucks.
I’m 100% with you, this is small relief. The larger one would be if my friends and neighbors would actually get past their ego’s and educate themselves. That would, unfortunately, lead to having to admit they were wrong; something we Americans loath.
Since your on the topic, this speech by Sam Harris on Faith is one of the best I’ve heard.
If we can’t keep the businesses in this country and/or get them back, I don’t see how we get out of this.
Maybe we need a law that says that if you own a business in the US and outsource the work, your will personally be taxed at a rate of 75%. If you did that, business owners would be forced to stay here and employ Americans or they will be forced to emigrate.
I like Gore’s ideas of incentives for global warming technology-oriented companies – but they must stay within the U.S. and employ Americans, or else.
Is there any other way?
Yes they did. NPR is a f**king right-wing joke. If it weren’t so sad, it would be comical.
Things are good for them too Ann. They’re rich, their friends are rich, their families are rich. And, to be be fair, the current congress is run by blue dog dems in alliance with the republicans.
I think that there is a very real chance the someone like the Saudis or the Chinese practicing disaster capitalism on us in a major way.
My last trip abroad, Italy, winter ‘03 -’04, everyone I spoke with in cafes, hotels, shops, everywhere, asked what’s wrong with America? They asked this far before they knew my political leanings and they knew everything Ian mentions in this post except the corporate state of our media.
Thanks, I’ll read it. I was trained as an artist and my greatest failing as an artist was my lack of understanding basic economic issues.
Wow! Not sure what to say, except that I think some of what Ian Welsh is talking regarding US economics is what results when economics turns from an empirical science into an ultra free market religion -which is what I think has happened in big chunks of US culture. And then what happens when rich powerful people take control of that movement. At Talkingpoints memo I saw a quote from the new book by the New Hampshire GOP phone jammer convict -he said that his conception of the American Way was that each person pursued his or her self interest ruthlessly up to the very limits of the law. I think (or hope) he has modified that view somewhat. That type of thinking is another problem.
I think Ian is a little to optimistic about single payer as a cure to US health care ills. Here is report recommended by Krugman that collects all the info about where the money goes. It ain’t pretty. Single payer will solve some of the problems but not all by any means.
McKinsey Report on Cost of US Health Care
http://www.mckinsey.com/mgi/rp…..thcare.asp
I recommend anyone interested in US health care crisis give it a read. It is not technical, and collects lots of info in one place.
Below are gloomy posts on the current panic and coming economic slowdown:
What Are the Prospects for a Two Recession Bush Presidency?
http://www.econbrowser.com/arc….._pr_1.html
Consumer credit default and spending change
http://angrybear.blogspot.com/…..nding.html
How Wall Street broke the free market
http://www.salon.com/tech/htww…..index.html
The Econobrowser post is by a very good economist named Menzie Chinn. The Econobrowser blog owner is James Hamilton, a brilliant statistician and economist, but also very conservative in terms of general frame of mind (I have no idea what his political views are, so I don’t mean conservative politically). Hamilton still does not think there was a real estate bubble, but his reasoning gets technical very quick and it is not clear to me whether or not it boils down to semantics. Anyway, there are several different voices on Econobrowser, so don’t get pissed off and click away, since most of the posts are worth reading even if you don’t agree with some of them.
I am sorry to disagree, but I think that is another “we won WWII” American myth.
The Saudis and Chinese intend to use the next year or so to buy up as much of the US’s prime assets, at a steep discount, as they can. They may wind up bailing the US out, in effect, but the cost will be extreme and crippling.
Someone I am personally close to was a Clinton appointee to the board of CPB whose term continued through Bush’s first presidential term. The stories of hackfuckery I heard were unbelievable.
Oh, boy. Max Blumenthal says Huckabee has white supremacist ties.
This is the answer to the question why the “Democrats” can’t get anything done in the Congress: There is not a “Democratic” majority; there is a Republican+”Conservative” Democratic majority.
So, it wouldn’t be too far off the beam to say we need to get rid of every blue dog Dem. The problem is, is the will to do that within the electorate? For several days now, I’ve been asking everyone who will listen, just how much of a minority are Liberal/Progressive Dems, and what in their definition makes them different from moderate or conservative Dems? Also, is there a substantial number of more Liberal/Progressive Rethugs? If so, what distinguishes them from Liberal/Progressive Dems? Could they marry? Well, you get the idea.
I may end up sorry I asked, but didn’t we win WWII, in the sense that the Germans and Japanese surrendered to end the war? Is there some other sense you are using the verb “to win”?
I guess we will see, eh?
It is important to remember people really really hate Bush and all of the Republicans running are just a third term
In Az people are becoming Democrats in large numbers because they want a voice.
http://news.ktar.com/?nid=6&sid=705968
WWII was won with a large amounto f effort by countries such as Great Britain, Australia, Russia, and France as well as the US. We supplied large amounts of materiel to the war effort but we were far from alone, in both theatres of operation.
I believe there were some other countries involved on the winning side…
I like that! Hope it’s true, and I think the fact that we finally have a Governor (a Dem) that’s worth her pay helps.
I have been waiting since 2006 for anyone to notice that our Democratic “leaders” are actually just the survivors not the victors.
In my profession and location, long term jobs are hard to find. Every time I start a new job there is that one curious guy that has been there 15 years. To this day the only recognizable trait that I have discerned is a less than average skill and knowledge but they are experts at “goin’ with the flow”. Does this remind you of anyone?
Sorry about slighting/missing the Canadians
Sorry, the “we” I was referring to is the USA all by ourselves. I grew up reading history as if the US did it alone and saved the world, instead of giving anyone else any credit.
I guess I do have one comment. I didn’t see the word ‘crony capitalism’ in the post. That is clearly a big problem that the Bush Cheney regime added on to the ones that were already there in 2000. There is a link to a very good discussion of the soverign wealth funds bailing out US banks and financial institutions. It featers the Swedish Bank/Nobel prize guy Joseph Stiglitz as well as two other very good economists. They disagree on some minor and middling issues, since some of them are more free market, pro-Washington consensus style globalization than others. One thing they did all very definitely agree on is that there is no danger of the US being ‘bought out’ by foreigners.
But by the end of the discussion is was clear that they did all agree on one thing, and that was that the sovereign wealth fund buys did pose one great danger, and that was that it would promote more international and US based crony capitalism. If the incompetent US bigshots and their industries get bailed out with not cost to US politicians or taxpayers, this would make it less likely that adequate regulation and policies to promote transparency would be adopted in US financial markets. They agreed that this was the real danger of the ’sovereign’ in the sovereign wealth funds -political cronies would have control of the funds, who might like to make the markets work only for them and their US counterparts until things blew up again.
Joseph Stiglitz, and others, have pointed out that, looking at financial markets statistically, we have had four or five ‘hundred year floods’ in just over twenty-five years. Somnething seems deeply out of whack.
I can’t find the link to the discussion of the sovereign wealth fund bailouts -I think it is at either http://angrybear.blogspot.com/ or http://economistsview.typepad.com/economistsview/ sometime in the last two weeks. I think it was an NPR show.
No offense taken! (Though I did notice)
Ah. I didn’t get the stress was on the “we”, not the “won”.
right there in print
Dissatisfaction with the Iraq War and President Bush are cited as reasons for more Arizona independents registering as Democrats to vote in the state’s Feb. 5 primary.
or to put it in other words They think Shrub and his war both suck
enough to become gasp Democrats
How disillusioned do you think they are going to be when they get a big dose of business as usual? Liberals are going to remain persona non grata just as we are now. Our agenda is no closer to becoming reality than it was in 1968, when I first started voting. It makes me want to cry, if you had told me then, I admit to being young and stupid-that things would be as they are now, the war on drugs, 2 million + citizens imprisoned, mired in yet another unwinnable dumbassed war, social inequity rampant, I’d have thought you a fool. The joke is on me.
Got it. I misread the stress.
Great post Ian, and your point about the media habitating the same socio-economic class that they’re suppossed to cover is a huge part of it. I remember one Daily Howler story about Ted Koppel, who is a car collector (a manifestation of wealth and acquisitiveness I find especially grotesque), calling Colin Powell over to test drive his newest automotive addition. If you trust a guy to take your classic car out for a spin, I doubt you’ll be second-guessing whatever pronouncement he makes in his official capacity the next day.
I don’t want to belabor the point but every issue you raised in this essay leads directly or indirectly to our broken media’s doorstep by either their failure to clarify fact in the face of propoganda, or by ignoring realities in favor of trumpeting American exceptionalism, or of not holding the peolple in power responsible for being wrong or ineffectual just as they don’t hold themselves responsible for those transgressions. As you pointed out, for the people at the top it’s a closed society and it has become the opposite of a meritocricy. But of course the ones who benefit from it defend it as if it were, most especially the media, who are now basically acting as a firewall protecting the rotted status quo.
Sorry to go on, but you wrote a piece here that got my blood up. Thanks
I am with you on the war on drugs the biggest friggin waste of time and money and another example of the Republican’s fake state’s rights doctrine
Hee, hee…Office Space is on Comedy Central…
I am way out of my league with this crowd but grateful for the education. Anyone see a way out? In my very limited perspective, wouldn’t UHC be a good start? Take some pressure off middle class, help industries become competitive, increase everyone’s income, lessen the number of bankruptcies etc.
I’m sure someone will let me know if this is too simplistic.
ian, I’m have to tell you, this post is brilliant, it’s cut and copy, it’s saved to my favorites political poster and it will be referanced time and again
man, this is great
We’re just clearly not the majority. The swell in Obama support shows that. Most of the nation is just low information hopeful and decent people. Our ranting about the need for crushing the incumbent administration grates on all those people who just want a decent life. They don’t see any of the connections, and think we’re a bit crazy, which is why the term bush derangement syndrome has traction.
Ian, thank you for this devastating, preceptive, far-sighted post.
I’m gonna up on my roof now (oh wait it’s only two stories)I hope the triple implosion (national debt; balance-of-payments;
pyramidfinancial sector) shakes us free of megacorp rule.I fear the megacorps will exploit – through their wholly-owned media – the coming economic dislocation to complete the functional overthrow of representative democracy in the US. The “free market” delusion is so entrenched in our popular culture that most of our decision-making space already lies within the asylum walls.
Yet I haven’t give up hope that the accelrating economic collapse will implode the Cult of the Free Market before civil society – and the Constitution – succumb to the megacorps’ cyanide messaging.
According to the History channel, the Brits got us into the “Drug war” out of shame for the opium wars. Even convinced congress to find a way around the constitution which forbids any laws against drugs.
I just read this post. Ian.. hat tip to you… you nailed it. Americans are completely delusional about reality. They think we have the best country in the world in everything, but we are simply the best in consuming and debt and deception and waste.
The party is coming to an end. Nobody wanted to look at the reality. The rich were busy screwing the poor and indulging themselves and everyone else was hooked on sports, pop culture and consumer electronics nonsense…. and cars/truck and motorcycles.
The slide has been along one but the end is coming quickly now.
Just a gentle reminder that PhysioProf first raised that point here in the comments. (We academics can be touchy about credit.)
Repeat as necessary.
Can America afford a third term of the Bush presidency.
Cause that is what handing the office to a Republican means.
-G
Crony capitalism was subsumed in the wealth effect and the discussion of the fact that many things that are counterproductive are continued because people are getting rich off them.
Economists tend to look at the total size of the economy and say ‘no one can buy this all out’ but what matters isn’t if they own the real-estate, what matters is if they own enough key sectors either technologically or in terms of profit. Money outflows in the US are a huge problem, having even larger outflows is not good. And when key industries are controlled by foreigners they make the decisions. And many SWFs will makde the decisions that benefit their home governments–not the US.
.
bears repeating
You’re right that a lot comes back to the media. At least part one of the insanity wouldn’t function if the media was healthy and part two and three would have problems as well.
I’m no economist, but it sounds roght to me. It should be particularly good for small businesses that don’t currently have any pricing power with insurers.
You are right. My apologies
One big problem is the lack of information about other countries. We need to get out more.
Kay, I agree that the Top 3 Democrats are not very different from one another in terms of actual, on-the-ground, policies. I’ve done serious work trying to find out how their withdrawal plans from Iraq differ, their approaches to the Israel-Palestinian issue, their approaches to Iran (not one has acknowledged that the new NIE should be reflected in a serious change in approach), Health Care, Energy, the Environment, etc. It seems as if they are simply cribbing stuff from each other and polishing it up a bit. All have attachments to Lobbying and Corporate Forces involved in the Sub-Prime Mortgage and Foreclosure industry. All have some tainted advisors.
None of the fairly moderate stuff they are pushing would even be accomplished unless we get more progressives in Congress PUSHING them and the party away from the corporate trough. Quite simply, that’s where I’m going to put my $$$ and support, rather than the three Democratic Presidential candidates. I’ll vote for the nominee since a Democrat will likely not veto as many initiatives and may, on occasion Demonstrate something of a challenge to Wall Street.
I compare it to someone in Hawaii and looking out at California and Alabama. From a Hawaiian horizontal perspective, the two mainland states look “very close”, but they really are different from space, and it’s a heck of lot easier to get to California (with Obama, Hillary and Edwards being different cities in California) than Virginia (where the Republicans reside).
The big question is, can they figure out a way to blame Bill Clinton for the mortgage mess?
Sometimes it takes a crisis to turn public opinion around. Some parts of the New Deal consensus became tired and discredited in public opinion after 40 to 50 years, as I see it. After that 10 to 20 years of struggle, during which the mainstream liberals spent most of their time temporizing, compromizing with no detectable principles, selling out, acting like sneaks and cowards, and losing. A coalition of movement and paleo conservatives won it all 8 years ago, and now it has taken exactly 8 years for them to produce nothing but disater, disgrace, corruption and failure. There is no place for them to run, in terms of selling their failurs to the public. Which of their tired old lines does not seem like a bad joke now. I heard Romney actually say that the public does not want change in the White House. I hope some one saved that clip.
In an election year, the problems of a disastrous, immoral war, and 8 years of crap economy for most people, and a new financial crisis that was the free market maniacs own making and no one elses, converge. That might be enough to energize the voters.
I hope it will be enough to get a lot more and a lot better Democrats in Congress next year. That is my hope.
No worries!
Yeah, I tend to agree. The thing is, it’s so hard to do anything to fix it without appearing “insane!” Like replacing all the Blue Dogs and still adding to the plurality in the House.
Sorry to come in late, without reading the earlier comments, but somewhere (here?) earlier I read how alot of the drug interdiction program was set up essential to support Central and South American war lords and to purchase arms for them – $ billions spent with no interest actually in stopping the drug trade. Ditto the problem posed by the earlier (ongoing?) CIA role in drug shipments.
turns out it is also true in Iowa
Secretary of State Mauro: Announces record voter registration at caucuses
1/18/2008
Michael A. Mauro 515.281.8993
(Des Moines) Iowa Secretary of State Michael A. Mauro released initial voter registration statistics resulting from the Iowa Caucuses, which were held on January 3rd.
Numbers reported by Mauro’s office reflected that nearly 7,000 new registrations have been processed into the statewide voter registration system so far. In addition, over 52,500 party changes have been processed. Mauro anticipates both numbers to grow as county auditors have completed only about half of the registrations they received from the caucuses.
Of the approximate 52,500 records processed so far, the Democratic party seems to be the big beneficiary, with over 43,000 party changes to Democrat while the Republicans received about 9,500 party changes.
http://www.iowapolitics.com/in…..cle=115985
I guess they are Bush Democrats
Mortgage crisis – I think Rubin has been involved in it, no?
we were talking about the war on drugs in the us on everyday citizens here
but there is that other one equally stupid
I often think wonks (of whom I’m more or less one) spend too much time in the weeds and worrying about details. Not that details don’t need to be taken care of, but all the details in the world won’t save bad policy and with good basic policy problems become much less intractable. Single payer gives a ton of “control” by its very nature and that control makes solving a lot of other problems a lot easier. It isn’t a placebo, but in policy terms it’s a dead obvioius and dead easy (not politically, in policy terms) win that will undeniably reduce costs significantly.
There’s no need to over-complicate things and I’m tired of the US pretending that it’s so different that policies that work in every other country in the world that ever tried them somehow won’t work in the US. They will, if they’re tried honestly.
Stop trying to reinvent the wheel.
Brilliant, cogent writing, Ian.
Ditto Air America and the smack trade in SE Asia.
Thanks -and I like your name :-)
You’re right Wesgpc, there will be nowhere for them to hide on this ecopnomic mess. Despite their most frantic efforts to stave off it’s impact until after the election, I don’t think that there is any way possible that can be accomplished.
As you say, people may be unaware until the pocketbook bites them, but then they become very interested in the political scene. Our problem is th eliars in the media in general and Faux News, LImbaugh, Boortz and the like in particular.
Yup
lol! good point :)
OK, I can see your point. But is an election year! I prefer ‘Crony Capitalism.’
You are taking the Stiglitz veiw on the sovereign wealth fund issue, and it is a reasonable one. But I think that will be medium to long term and subtle. The possibilities of continued mismanagement of capital and financial markets is a greater danger, in my view in the short run. A moderate to severe recession with major financial markets frozen up and broken scares me. And I think the US economic and financial intellentsia is so unhinged, they would just stand by as the crony capitalists (GOP and Dem) who rule us, allow the broken system to roll on to the next crisis which might come at a very bad time. They will do just that if some suger daddies show up with a big wad of bail out cash in their pockets.
The thing that amazes me is that in the year when Wall Street lost billions of dollars, and investors in huge financial firms lost billions, the greedheads took out billions in bonuses and severance packages. Only the stupid average investor would put up with that.
i said last nite to Dr. Yunus…the elite (rich as hell) media whores,propigate the illusion that ordinary peeps can achieve that kind of wealth…what that meme produces is abject GREED!
I think there’s a very good chance that we survive this crisis, get hit by the next one and get rolled under. So aye, I agree. Stirling agrees with that take btw, he thinks that China and the oilarchies will bail the US out this time, the game will go on, but next time no one will be able to. Not sure if he’s right, but it’s plausible–there’s a ton of cash floating around looking for a place to land, and it’s finally finding it.
I tend to find Stiglitz’s views match mine pretty closely on most things, even more than Krugman’s.
it is their due..they are BLOOD SUKKERS
we only had NPR and it had not blossomed… the Repub think tanks made sure it tanked before the going got rough
i still read iraq news from BBC and Juan Cole, but fear we have miles to go to climb out of this hole we are in
Americans have been trained in what to think, they’ve not learned HOW to think.
The problem… cause.. is the unfettered free market capitalism. What is happening is what was predicted by Marx and capitalism is in its last throes… its inevitable end… where the ponzi scheme folds in on itself. The emperor has no clothes.
You can only extract so much wealth from workers and then there is nothing left to take.
Didn’t mean to bash single payer. I am for it. But it is just a beginning, to be honest. And I don’t advocate totally nationalized health care. This is my own opinion, but on the supply side, health care markets in the US have a lot in common with the financial markets -lack of transparency, self-dealing, rent-seeking, hidden cartelization, and often frank corruption.
But if you think better to focus on single payer and univesal coverage, I agree.
It’s not that I’m not overjoyed, because if it turns out that way on election day, I will be overjoyed. But I do maintain a healthy skepticism, for this reason: I don’t necessarily put it past Rethugs to game the system. Last year I had some friends whose voters registration cards I saw. They swore they were Democrats; I said they weren’t. Why? Whenever you went to their house, the TV was tuned to fox news. If any political issue was mentioned, it was responded to with Rethug talking points. These were nice gregarious people, but I think they gamed the system same way Romney did. When Romney was confronted with having voted Democratic in one election, his excuse was that he was just trying to pick the worst primary candidate for the Rethugs to run against. They’re tricky, sneaky little bastards, and I’m not giving them so much as a rock to hide under. But I sure think we could use a win!
We need laws against Exploitive Usury (Interest rates) again. Maybe point out that usury is against the Bible. Interestingly, the Muslims have all sorts of banking systems developing that prevent exploitative usury.
The wealthy elites saw these compounding interest rates as a way to get even wealthier. They really are no different than the criminal mafias that acted as money-lenders in the ghettos and disadvantaged areas of the nation…it’s simply become legalized. And of course they could no longer break peoples arms. But they could make them debt slaves (the new Bankruptcy Bill) and homeless. Of course the elites will argue that this would inhibit “growth” when in fact it would merely reduce conspicuous consumption and waste.
And perhaps there should be a system where speculation bought housing and office space should be turned over to those that are willing to make use of it. Sort of a new “Homesteaders Act”. A vacancy of 6 months could be letted at much reduced rates to teachers, artists, etc. The individuals would have to maintain the space, pay utilities, and perhaps turn it over after a year if the owner actually had a tenant to fill the space at their higher price. I see lots of spaces just sit empty. No hiding of such vacancies by extensive renovations, etc. If you don’t fix the space it goes to a “Homesteader” at half price.
I think this maybe a Howard Beale moment. It may not reflect a sea change but a moment in time when some things can get done
I hope we don’t squander our opportunity by letting the media drive us into an inter mural fight.
You can’t bail “us” out because our problem is not in the corporate board rooms, it’s on main street and the chinese are not setting up micro loans to americans who went way out on the credit limb as they were told to do.
The share holder class can be bailed out, but not the workers, the people and so, my friend you will see the decline coming NOW.
Add to that the peak oil problem which no rich country can help “us” with as we are way too addicted to fossil fuels… and they are demanding more and driving the price even higher.
Throw is global warming which is going to have huge economic and social costs and no rich country can bail us out of that one. We dragged most of the world down with our internal combustion engine as fuel gluttony.
No bail outs are a coming… it’s going to be a slide to the end of this country as economy as we once new it.
The long emergency is a coming to your neighborhood and dems, progressive dems are clueless as to what to do. Capitalism did is in.
I take hope in the fact that – despite the corporatist media and the megacorps’ vast ad buys – Americans endorse progressive positions in health care, family leave, education subsidies, ending the Iraq War.
Even without formal media literacy training, the majority of Americans tenaciously maintain progressive positios despite decades of corporatist propaganda.
This deep reservoir of communitarian/progressive values in Americans living outside the upper %1 shows the majority of Americans are already part of the solution. I look for political strategies (and communication strategies) from political aspirants that demonstrate cognizance of this latent power and eagerness to use it.
When you say “China and the oilarchies will bail the US out this time”, in what way would they do it? I’m over my head here but havn’t our financial markets been thriving because of mostly phony bookkeeping with regards to risk and credit? Even if China throws billions of our own dollars back at us isn’t the phony basis of the credit/risk ponzi scheme already a done deal that can’t be revived? And if those things are true (I’ll accept you assesment) wouldn’t that mean that the overinflated wealth of the economy would have to find a drastically lower level?
I’m beginning to think our candidates don’t need any help from the media. Whatever they do, they very well may do to themselves (or each other, anyway!)
Kirk,
The problem is that the people need leaders who can make policy in their interests and this system won’t let that happen.
Anyone with an anti corporate message is branded a commie, libral, pinko, whacko and the system keeps feeding the rich.
True enough. Americans call themselves conservatives and believe in progressive policy. It’s an interesting disconnect and one that liberals have not exploited properly.
Same here. If you take a look at various opinion polls, you find that the overwhelming majority (>60%) of the voting-age citizens of the United States support what is essentially the platform of the progressive wing of the Democratic Party–withdraw almost all troops from Iraq immediately; drastically roll-back the unconscionable tax cuts that the very-rich, ultra-rich, and corporations have accumulated over the last couple decades; provide single-payer universal health care to every person in the United States; restore the proper balance of powers between the Executive branch and the other two (particularly the Legislative); stop torturing, illegally surveilling, and otherwise violating our Constitution and treaties.
In my opinion, if a true progressive Democratic presidential candidate (Edwards is close, but lacking in a few respects) had the opportunity to promulgate his or her progressive platform to the people of the United States without the grotesque and despicable distorting effect of the corporate oligarchy controlled mainstream media, this candidate would win election by a landslide, without even attempting to specifically appeal to “moderate Republicans” .
Other than the 30% or so of truly batshit-insane neo-confederate wackadoodles (listen to the people that call in on the Republican phone line on C-SPAN’s morning show, Washington Journal if you want to know what I’m talking about), rational Republicans know that their party is in the grip of a core of truly evil and insane people. Enough of them know in their hearts what is best for their own pocketbooks and social freedom, as well as for the nation, that they will vote for a progressive Democrat without specific attempts to pander to “batshit-crazy-lite” Republicans.
A lot of financial companies are below thier reserve requirements in cash or near cash equivalents. That is to say, they’re effectively bankrupt if anyone calls them on it. SWFs and others are holding, literally, trillions of dollars of US funds. So they are offering hard cash for ownership stakes at rock bottom prices according to equity (though possibly still too high, depending on how far down you think this bucket is going.)
Since there is this much money floating around, it may be enough to bail out many of the key actors. The US government will still have to intervene, especially to save Fannie and Freddie (or to pick up the pieces) but it may be doable simply because of the huge money glut.
It may not be, if too much of that money loses too much value and/or it itself is overleveraged on dubious debt. But a lot of it is in treasuries and most US debts, even if foreign owned, are owned in US dollars. So you can always take US dollars and/or run the presses if you have to.
It’s not a sure thing, by any means. It all depends just how bad things are and no one really knows yet. the US system is supposed to be the most transparent in the world, but most of the numbers are complete BS.
Look at what is going on NOW. The big financial institutions are insolvent.. that is they owe more than they have. Their so called assets evaporated because they we scams in the first place.
The money being infused is cash for equity stakes in these financial institutions. They are selling the house so that they can live in it… and pay rent to some new offshore landlord.
But if they don’t change their friggin ways… they will simply create more scams which are illusory wealth and people are wising up and not going to play… and those that have “investments” are going to go very conservative and move it into what they think are low risk instruments like gov bonds.
Financial boys are going to lose lots of their mad money. People are going to be fleeing from the market like they did in 29… because much of the value is BS and bubble on bubbles on bubbles.
Ian, re your 141 -
Is the US still burying the “money supply” (M3?) data in our transparent economy?
Many of the large financial institutions… I say most of them are effectively broke and would collapse on a call. That is a big fear… especially the insurance sector which set itself of to insure these phony financial instruments. That business, like most insurance is a way to scare people to pay them for nothing and these companies invest and can’t meet the insurance that they have written… if a shit load of claims come forth… and come they are in the financial sector.
Thanks for that link. I watched it. Having read Sam Harris’s book, The End Of Faith, I enjoyed that video very much.
Not discounting your proposition, what sort of claims, specifically do you anticipate?
When the MBAs and PhDs started coming out with derivatives and hedge funds to guard against downside risk of financial instruments you know that this was just poker at high stakes by the so called masters of the universe.
That BS should have been outlawed, but who is going to kill entrepreneurial capitalists… they produced NOTHING for the world. Not a bloody thing.
I guess what I was driving at is even if overseas intervention helps Corps. remain solvent, won’t the level of business and profitability still have to radically diminish since the driver of that wealth, the credit/risk schemes, have to stop and won’t that in itself seem to the financial markets and average Americans like we’ve hit the iceberg?
Chilling and dead on Ian. And the strange disconnect with reality continues. (wealthy) friends email me about travelling abroad and buying vacation homes; meanwhile I’m calculating how to live if banks close and the electric grid goes down. I’m thinking how many pounds of potatoes I can grow and how to supply fresh drinking water.
Short-selling and especially short-selling on a down-tick seem purposefully designed to collapse the market.
“But if they don’t change their friggin ways… they will simply create more scams which are illusory wealth and people are wising up and not going to play”
Thanks, that was exactly what I was trying to say.
The large financial institutions sold financial instruments, for example, bundled mortgages, which were to have a certain value. So if you buy one with a face of value X you expect it to be a fungible asset… but there is no there there or very little there there. They can’t pay dividends… and they can’t sell their notes / instruments.. to other institutions or large investors. Their word don’t count any more. Their paper is worthless.
yes, but sometimes other people put it together. Believe it or not, latest figures actually show money supply in all the Ms, declining despite helicopter Ben practically giving the stuff away. Despite having written an entire article on the monetary base and the danger of it collapsing, I was shocked it’s happening so soon.
Yah, I was calling MBAs a sickness over 10 years ago. These days I call it “management by spreadsheet”. No one who hasn’t spent time with a spreadsheet can really understand the way it changes how you look at problems.
Money injected into the economy will do nothing of what it is intended to. The lower incomes will pay off debt to creditors and this will have NO job creation stimulus. They will owe less.. so big fuckin deal. The economy will still implode, but some creditors will have a bit more on the way down.
Our economy is based on credit and debt from the top to the bottom. But this is also the Achilles heel of the economy because debt and credit is what the financial institutions see as their product and profit.
If you have an economy where people save money and don’t have credit, the banking and financial system is outta business.
That’s a fascinating comment. What specific effects does it have?
“even the houses they valued more than their children”
Perhaps there is some particular form of insanity that makes you write stupid, juvenile, offensive things. Or maybe it’s just that your writing sucks so bad that you have to find some melodramatic way to get attention.
This is a parody, right? It should be on The Onion.
When they invented the credit card and the credit rating it was the beginning of the end. They made everyone into a credit addict.
Seemed like a good idea for business, but it was the undoing of it all because they got way too greedy.
I think you must have misunderstood. I’m pretty sure he was talking about the decision to keep real estate taxes low even though it starves the public school system.
No man, people worship their products.. their image.
See
Century of the Self:
http://video.google.com/videop…..;plindex=0
To them, it’s a big, fun poker game. They play it every day and they get to be good at it. Morality is not an issue. Winning is the issue. Macho competition. “Winning isn’t everyting; it the only thing.”
He is a great speaker. I wish I was one tenth as well spoken on the topic.
Credit grabs tomorrow’s money today and puts it in the pocket of a swindler. What happened to tomorrow’s money? Its already been spent.
“even the houses they valued more than their children”
my take on this is: not far from the truth. Lived in a small city 20 years or so back. Used to walk uphill to the wealthy neighborhoods a couple times a week. Big, comfortable homes. Probably the kind that go for – say, 500,000- 750,000. Not exactly rich, but solid upper middle class.
Thing is, no one was ever home. Beautiful days, not a window open, not a dog barking, not one kid on a swing or even a tricycle left lying around. It was like the whole neighborhood had been evacuated. Where were they? Mom and Dad both out putting in serious time at serious careers to afford this “lifestyle”. Kids? Well, older ones in school. Little ones? All farmed out, every single last one of them. The best day cares money could buy, no doubt.
Something very wrong with that, right there.
Read that book if you haven’t. There’s a whole lot more meat in it. The End Of Faith. The man is brilliant.
My last trip abroad, Italy, winter ‘03 -’04, everyone I spoke with in cafes, hotels, shops, everywhere, asked what’s wrong with America? They asked this far before they knew my political leanings and they knew everything Ian mentions in this post except the corporate state of our media.
my 2001-2002 trip to the Italian/French border, the Danes at the bar were asking why we’d elected an idiot and an invalid???
After a certain point, they couldn’t help themselves, i.e., after the learned that they could:
– borrow money from foreigners
– loan it to aspiring homeowners who couldn’t service the mortgage
– sell that worthless mortgage to a greater fool, who felt secure because it was backed by real estate, whose prices were balooning from the influx of foreign money.
What can’t go on forever won’t.
A friend and I backpacked in Northern Europe in the Summer of 1988. Everywhere we went, when people learned we were American, they wouldn’t even let us buy our own beers. I’ll never forget an entire bar full of drunken Norweigans in Bergen serenading my buddy and I with God Bless America.
Tariffs are needed on imported goods. Job exportation needs to be staved off. Four years we could have handled. Eight years of Shrub and trickle down has f**ked us good.
Tariffs on imports goes against the grain of Wal-Mart. They won’t like it so it won’t happen unless someone has the balls to do it.
Balls + Democrat = nah.
Hackworth,
We allowed our corporations to offshore and out source and that destroyed our manufacturing sector and millions and millions of jobs.
We don’t make enough stuff here to have good employment and well paying jobs.
A worker cannot send their kids to college. It costs 250K per kid! Insane.
People are seduced my low prices at walmart, but they are screwing their neighbors who lost their jobs in factories and other stores so walmart could import chinese slave labor goods.
Capitalism is slavery.
They did it in the South
Then they moved it offshore.
Bingo. But I’m pleased by Chrisss’s comment, to have offended him that much means I hit a nerve.
I didn’t get to read all the responses but did anybody point out that in the midst of this insanity, Democrats get whipped by the media into thinking they have to run an unpopular woman or an inexperienced biracial man as the candidate….instead of the one candidate with the best politics, best family, and best electibility–and that Democrats would swallow the toxic pill and end up in the calamitous internal war that Hillary and Obama’s followers are fomenting, which has damn near nothing to do with ending the insanity.
It’s f-ing insane. I’m voting for John Edwards.
Right. Lots of Union busting. The thing is – there is nobody to buy the widgets when nobody has a job. The end of eight years of a mafia bust out.
They’ve f**ked themselves out of customers.
Perhaps you recall the geniuses at Harvard Business School praising the wonders of “the service economy.” Every nation should concentrate on it’s core competence. The United States can’t compete in sweat intensive manufacturing jobs, but we’ll thrive providing services that third-world types are too stupid to provide themselves, stuff like engineering, computer programming, accounting, marketing, etc. Duh!?!? They didn’t bother to check where to our technology PhD graduate students come from?
Now China and India are opening up universities that rival ours.
I always enjoy your comments. You are on the ball.
Who says we don’t kumbaya enough here?
A spreadsheet’s a model of reality and makes it very easy to chance a variable here and a variable there. So when you look at expenses it’s very easy to see “number of employees” or “wages” and change those numbers and see “wow I could save a lot of money” and that means this other number, profits, increases.
What can’t be measured, however, are often the important things. The classic example is Walmart vs. Home Depot – Walmarts costs are a ton lower and they pay their employees squat and have horrible benefits. Home Depot has higher wages and higher benefits. If you were to spreadsheet that you’d come out with that Home Depot should make a lot less money.
But it makes more money by many measures, because the employees are a ton more productive, because they’re happy, comitted and have a low turnover rate.
But you can’t really spreadsheet that because it doesn’t always happen. It’s a “maybe” and there’s significant lag time and it has a lot to do with corporate culture.
there’s no 1/1 correspondence.
So Walmart spreadsheets, sees their model of the world and acts on it. And they keep wages low. Or Circuit City spreadsheets, sees they have X number of employees earning much more than the basic wage and shitcans them and hires new cheap employees and their sales plummet. But on the spreadsheet it didn’t look like that.
Or Toyota Kaizen, which is a cultural thing and is one reason why thier cost structure is lower and efficiency so much higher–you can’t spreeadsheet that.
Spreadsheets create a particular model of reality. Like all models they represent some things very well and other things badly or not at all, and such they lead to characteristic types of mistakes.
There’s a management saying that runs as follows–that which can’t be measured can’t be managed.
It’s not true, but it is true that it’s much easier to manage what you can measure. And most people are lazy and just work with the tools they have.
Spreadsheets are great, I use them all the time. But “management by spreadsheet” is very damaging.
Thanks for that detailed explanation! BTW, I really love what you guys do over at Agonist. The amount of brainpower, experience, and expertise you and the other bloggers and commenters there display is staggering.
That was obviously bullshit. They just wanted to bust the unions. They want $5 haircuts and lawn jobs, not $20 ones. Now their real estate isn’t worth shit either. One millionaire couple I know walked away from a $200,000 deposit on a condo. The value had dropped more than their deposit on a million dollar condo. They truly have f*cked everyone – including themselves.
Hackworth,
Thanks, and the feeling is mutual.
People need to look more deeply at what we are floating on in this country.
We get to involved at small struggles and miss the fact that the fundamentals are completely out of whack and wrong headed.
Ian Welsh does amazing work here at the Lake.
We need to clone that dude a million times and set them free in America.
Conflating measurability with importance, which I call the system-engineering syndrome, has been with us for at least half a century. My prime example is Robert McNamara who was brought out of the comptroller’s office of Ford to be Secretary of Defense. The man was reputed to be a walking spreadsheet; he could keep more numbers in his head and visualize their inter-relation than anyone could believe. And he was the genius who decided that body count was the ultimate metric for progress in the Vietnam war.
At the time, a very sage recently retired marine colonel who’d fought both in WWII and Korea and was working on an MS in mathematics explained to me in detail exactly why McNamara was wrong: “You use the body-count metric in a war of attrition and there is no way the U.S. can win a war of attrition in Asia. It’s exactly what MacArthur warned against.” Recently, I watched The Fog of War and saw the tears in McNamara’s eyes. Maybe he now realizes that body-count wasn’t the right metric.
Management by spreadsheet can lead to horrible evils and is doing so particularly in the U.S. healthcare system, where it is now called “murder-by-spreadsheet.”
Thanks, I’ll check it out!
Ian, thanks for giving an accurate rendition of what image most of the world sees happening there, your image is undistorted and true. Robert Burns’ appreciation of the value of seeing ourselves as others see us is never more spot on.
Recommend dusting off any essays you may have lying around re: Utility, Theory of diminishing utility, and progressive tax structures, under the theory that repetition will allow folks to cop onto the fallacy of flat tax rates. Also anything covering economic discernment of wealth, asset, income, and ownership of economic resource (and what economic resource is). These are some subjects that need broad understanding.
True–measurement has been an issue for a long time. But it used to be a lot harder to do. Spreadsheets make it so easy any moron can do it and unfortunately, any moron is.
I should do something on utility, you’re right. Not quite sure how to do it in a popular fashion. Will think on it.
My next big economic piece will probably be on “it’s not your money”, how 90% of your standard of living is determined by the accident of your birth, what “your money” would look like (IOUs) and so on. Trying to figure out how to do that in an easily understandable yet not inaccurate framework. I’ve seen people hit it, but they lose their readers in the economic weeds.
Indirectly that will hit hard at flat tax and the BS about being allowed to keep “your money”.
Thanks for this post, Ian. Cuts to the bone, as is needed and as we deserve.
Ian
With all due respect the problem is far more profound than the U.S. We as a species have been driven crazy by inferiority. We use capitalism and nationalism to distinguish ourselves from the rest of humanity. It is insane to believe one human is better than another because he or she is richer, has a higher (more powerful) position, or is of a certain nationality or race. In the long run, as Lord Keynes said, we’ll all be dead. That includes the people who, for one reason or another, think they’re special.
Marx said capitalist countries would be first to embrace communism. Didn’t turn out to be true because the average worker dreams of making it and is so mired in the standard fantasy he is not deterred by long odds. That’s why lotteries work. You can’t win if you don’t play, but you won’t win if you play.
The solution is utopia, classless societies, but liberals on this blog don’t see utopia as a reasonable solution because human nature won’t allow it. (more negative imagery) and we, individualists all, don’t like the idea of being just one of the bunch, although that is what we are. We can’t escape our humanity no matter what delusions society offers to persuade us that we can.
There’s another downside to spreadsheets – the privacy they offer. Back in the elder days, in order to run a report, one had to make a request, with a reason why. Someone else had to approve it, and other people were involved with the computation, printing, etc.
If you said “I want to run a report to find out how much more money I would get in my annual bonus if we fired all the janitors and hired a cleaning company,” you’d have been looked at like you had three heads. But now the numbers can be run on your own computer, no one else needs to know until you’ve figured out how to sell the cuts and/or hide how much will end up in your own pocket.
Spreadsheets are also dangerous because unless you go through and personally doublecheck every formula, all sorts of shit can get finessed. I had a boss who always got copies of the spreadsheets and did a formula audit. Amazing how people will believe anything that comes out of a spreadsheet.
Very good points, especially the spreadsheet audit and the privacy. Embedded assumptions are extremely dangerous. I’ve run the spreadsheets and been spreadsheeted and the conclusion I came to at the end was I didn’t trust anyone else’s spreadsheets and only half trust mine. I also decided that if I ever run a major department or business that my key metrics will be hidden from my underlings. I’ll make them report stuff, sure, but what I’ll be watching for is when it diverges from proper correlation with the stats I’m really watching. When it does I’ll know someone’s lying to me with numbers.
I’ve seen entire departments be effectively destroyed by “managing what you can measure”, then measuring the wrong things and not understanding what was important that couldn’t be measured. It still makes me angry to this day and is one of the main reasons I quit my last corporate job.
Get out of debt.
If you are posting comments that agree with Ian’s fine work and you are in debt or getting ready to go into debt then you are part of the insanity.
Stop it. Start tonight. You’ve got to break free.
TBoy
I had a great reply going… but thought…
my, my, what a post Ian has here. He’s already said better than my agreement could convey…
agreement, indeed… and hope we can move forward from here!
policies that work in every other country in the world that ever tried them somehow won’t work in the US. They will, if they’re tried honestly.
Stop trying to reinvent the wheel.
Ian, there cannot be much profit in honesty.
I can’t even begin to tell you how much I appreciate what you’ve written here. Several members of my family are extreme right-wingers, as well as fundamentalist Christians. All my efforts to have a coherent conversation with them about facts connected with health care, the environment, the economy, you name it, is like talking to a giant stone wall. This experience has convinced me that denial, not the laws of nature or physics, is the strongest force in the universe. If it truly insane to believe things completely disconnected from reality (i.e. the facts), then there is no doubt that you are absolutely correct: This country is largely insane and we are now living with the devastating consequences. Frankly, I’m not confident whether change is even possible with these people. My experience is that they just continue to explain the terrible circumstances the rest of us are anquished about in terms of their own fairy-tale narratives. I suspect the only way to back off a bit from the abyss is if a majority of US voters, assuming there is one, who actually have a mature, reasoned perspective and judgment can steal away the wheel of power once again and then marginalize these forces of insanity, especially by getting the moneyed interest back under control, maybe there’s some hope we can make a little progress in a forward direction. But it still seems to me we can only stuff that evil genie back into the bottle for so long. If my dealings with me family have taught me anything it is that darker forces of the unconscious seems to drive a need for humans to impose own stories on the world. It looks to me like our entire nation is in need of serious therapy or a severe comeuppance, or probably both.
Too many otherwise rational people seem to advocating high tariffs to protect US industry. It will not work and in fact will be counterproductive in ameliorating the current recession and make the next one even bigger and an inevitable certainty.
Protectionism will not work for a number of reasons:
- what US industry will you be protecting? The automotive? That is already globally uncompetitive. How does the US benefit by protecting uncompetitive industries which cannot sell their output overseas or even at home given their consumers’ inability to afford their running costs or their output without going into increasingly unaffordable debt?
- tariffs work both ways. A non productive economy reliant on imports is likely to impoverish its own consumers faster with such policies;
- countries which have used tariffs successfully to develop their own economies in the past have used tariffs against imports with subsidies for domestic production, government assistance in developing export potential and targeted policies to develop the requisite talent/skill pool and infrastructure to promote economic diversity . Hardly any of these have used tariffs on their own;
- that last issue highlights the importance of a credible policy making apparatus that works towards augmenting the common wealth in national interest. Given that most of the investment houses are being bought out by SWFs which work for their governments’ interests, what chance has the US got to develop such a strategic policy apparatus? These foreign governments do not have to engage in overt lobbying. They can make corporate decisions to liquidate their investments if they deem the environment to be hostile to their interests. This will only hasten the next real recession and hopes of recovering at all from the current one very very slim. It is worth bearing in mind that Arab oil producers and China in particular are bailing out the failed businesses as a way to minimise their losses of US$ holdings in the short to medium term.
Tariffs suggest a desire to retreat into isolationism. That’s akin to burying your head in the sand rather than facing issues to chart a way forward out of this morass. The world is not going to evaporate just because the US decides it isn’t there. How in heaven’s name are you going sell your major export of lethal WMDs to a so called nonexistent world?
The recession is going to hurt. Look at it as the pain of initiation into responsible maturity from a self centred profligate adolescence.
Don’t get too comfortable Sona, the world hasn’t decoupled. The recession isn’t just going to hurt the US.