Obama as the New Reagan
No, that's not what I'm saying. But recently, Obama lost an intellectual heavy hitter, our friend Mr. Newberry. SN's got his detractors, but one thing no one ever says about him is that he doesn't understand economics. A sample:
The blame lies, of course, with two groups: the monetary authority for its decision to accept all of the risk from the bad debt of the last decade, and hand out fresh money in return, without taking any direction over the resulting financial entities. These entities, of course, flooded the money into the pockets of those in possession of the company.
The write downs obscure how buy outs, golden parachutes, and assorted swap deals have prevented any major reorganization on Wall Street or globally. The same bankers who got us into this mess, by and larger, are still in charge.
The second group, of course, is the fiscal authority of the US. Namely the Rahmite Congress, unconvinced of the existence of a recession but willing to engage in their favorite pass time of handing out subsidies to the middle class to consume. The checks sent out were, as I said at the time, partial rebates on the inflation tax for some, who proceeded to do exactly what should have been expected: namely, they spent it on goods that were inflating. What Rahm should have done was just written a check to the oil companies of the world for 150 billion dollars, because that is exactly where all of that money ended up.
The problem here is that the progressive and Democratic spheres have embraced - the supply side economics of Reaganism - so long as their right to fuck is not going to be gutted.
They run in fear from McCain, whose voting record is that he is somewhat less of a Reaganite than most Republicans on economics, for a Democrat who has, in his time in office, matched McCain vote for vote in the Reaganite theory that there is nothing that can be fixed by making profits that you haven't earned, with money that you won't payback, for things that people do not need. We are getting a choice between Ronald Reagan with social conservatism, and Ronald Reagan with less social conservatism.
The center-left and left, after having spent decades complaining about neo-liberal, University of Chicago, reactionary economic theories, has embraced them.
The little people, in otherwords, have betrayed themselves, in order to get temporary respite. The activist class, including the vast majority of so-called progressive bloggers, have joined in this. However, the one experiment with Rahmite polices tried so far has been a disaster: a wave of inflation and an economic recovery that will last less than a year, with a global recession predicted by Christmas. And yet, the so-called progressive bloggers praise a speech that was lifted, almost entirely, from the Rahm-Schumer "The Plan" for the economy: massive subsidies for the middle class and ex-urban class, tax cuts, tax cuts, tax cuts, and little in the way of fundamental restructuring. Having supported a massive military adventure over seas - and Obama voted for every spending bill that came down, and every expansion of domestic spying once in final form - and supported Supply Side Economics attempted this time around to produce inflation and recession, the Democratic Party has committed itself, and committed Americans, to another Crooked Deal.
He's got a lot more to say in that link that is worth your time.