Tuesday, December 20, 2011

Widgetville, Equilibrium, USA


The town of Widgetville, in the state of Equilibrium makes widgets. The owner of the factory, Jones, lived in WV with his family. All the workers in the widget factory know Jones; their children went to school together. Jones pays his workers a good salary. They have enough money to buy a widget now and then, pay taxes, buy a home, a car, clothing, food, and send their children to college.  There is even sometimes a little left over for their savings account. Not everyone works in the widget factory.  The butcher, the baker and the candle stick maker sell things to and provide services for the widget factory workers. The workers taxes pay for the policemen, firemen teachers and road improvements.

Now and then, Jones and his workers come up with a new way of making widgets that is faster and improves their quality. Now and then, Jones finds a machine that improves the process and product some more.  The result is that Jones makes more money but he shares with the consumer and workers by charging a little less for the widgets and paying the workers more and/or gives them more time off.  The result is that Jones sells more widgets in town and some to workers making gadgets in the nearby town of Gadgetville. Everyone is happy.

Unfortunately Jones dies and his widget factory is purchased by the Superwidget Corporation. The owners of the factory are called shareholders and they live elsewhere and the managers of the factory are called CEO’s. The owners of Jones factory don’t care about Widgetville or its citizens. They really don’t care if the factory makes a profit. They make their money by selling their ownership to people who may live even further away and care even less about the town of Widgetville or even the state of Equilibrium. The CEO is concerned primarily about two things: his salary and bonus he gives himself for making a profit on the widgets the people in Widgetville make.

He improves his profit by paying the workers less and making them work longer hours.  His shareholders are happy because the value of their shares are going up and the board of directors are happy because they share in the profits with the CEO they hired.

The only problem is, the workers can no longer afford to buy a widget so sales fall off. The workers pay less taxes because they earn less so the town council, which primarily reports to the CEO of Jones’ factory, fires policemen, teachers and firemen. The butcher, the baker and the candle stick maker are also affected. In spite of what measures he takes, sales drop off and the widget factory is losing money.  The board of directors approves a bonus for the CEO and, knowing that the factory is going to declare bankruptcy sell their shares while the price is high. The bulk of the shareholders, the ones who don’t live in Widgetville or even in the state of Equilibrium, lose their money.

The CEO sells to an international widget corporation and they move the operation overseas to the Republic of New Equilibrium where the workers don’t have such high expectations as the workers in Jones’ widget factory.

So what happens to the citizens of Widgetville? We shall see.

Saturday, December 17, 2011

The 1947 miscarriage of justice:

Available for sale at my paypal account - gomw12@gmail.com for $12 

On March 15, 1947, at 11:45 PM, the weather was probably between 50 and 60 degrees on a typically starry night. Walter E. Overell, 62 and his wife Beulah, 57 were aboard their 47 foot Yacht, the Mary E, which was moored in the harbor, when an explosion aboard shattered the still of the night while many of the residents were either in bed asleep or about to go to bed and sent the yacht to the bottom of the shallow harbor.

The Explosion was heard by Newport Beach police officers Lawrence Goddard and George W. Calihan who were on patrol in the area. They saw the boat sinking and called the fire department. The two officers saw Bud and Louise running hand in hand near Bay Avenue and A Street. The boat was boarded at 11:52 P.M. by Robert Myers of the Newport Beach Fire Department and he found the bodies of Walter and Beulah Overell.  Members of the Coast Guard arrived shortly and took the bodies to the Baltz Mortuary.  At this point, murder was not suspected.

A preliminary autopsy found the Overells were killed by injuries to their heads which could not have been caused by the explosion.  The Overell’s daughter Louise and her boyfriend,  George (Bud) Rector Gollum, were the last to have been aboard with them. Unexploded dynamite was found aboard and evidence was found that Gollum, along with Louise, had purchased the dynamite the day before the explosion. 

They were arrested and charged four days after the murder.  Evidence was overwhelming. 

The motive: The Overells opposed the wedding and told Gollum and Louise that Louise would be disinherited if they wed without their approval.  The Overells were wealthy socialites who lived in a mansion in Flintridge.  Beulah Overell, Louise’s mother and Wilhelmina Rector Stomel, Bud Gollum’s mother, had been friends while attending church together before either were married.  The Rectors, Bud’s grandparents and Beulah Overell’s family, the Jungquists were longtime friends.  Both families were wealthy.

Bud and Louise knew each other since both were children and got together when he was in the navy.  Both parents urged Louise to write to him.  Louise was an unwanted and unloved child ignored by her parents while growing up.  Bud was a social misfit and both parents though that they might provide some socialization for the two of them.  Bud saw Louise as his ticket to a life of the idle rich and when he was discharged, they became engaged and sexually involved.

Bud had always been around wealthy people, on the perimeter looking inside, and thought he had a right to the kind of life his grandparents and their friends had.  Louise had no love for her parents and Bud gave her the first attention and love, or what she thought was love, that she ever had.  When the parents threatened to take that away from her, Bud had little problem in convincing her to remove her parents from being the obstacle to the life that she deserved.

When they were arrested, it appeared like an easy win for the prosecution despite some infighting between the Orange County DA and the Newport Beach chief of police.  It was a high profile case and the state Attorney General appointed a special prosecutor to try the case.  There seemed little doubt that there would be a conviction.  Bud and Louise sat in jail for nearly four month awaiting trial.  During that time they exchanged some torrid letters/notes which were poorly written pornography.  The police were copying the letters and typing them out for use in the trial.  The Los Angeles Examiner was given the letters allegedly by the state AG and printed redacted versions in the paper.

In spite of the overwhelming evidence,  the defense attorneys attacked every witness, every piece of evidence and gained an acquittal.  It was a miscarriage of justice of the proportion of the OJ Trial and the recent Casey Anthony trial. During the trial and the exchange of letters, a breach in their relationship arose and they never saw each other again after the trial.  The inheritance was much less that they expected but still a good sum of money for those days.

Louise ended up dying of alcoholism while contemplating suicide while in her second marriage.  Her son, by a previous marriage to a Los Angeles policeman, inherited $27,000.  Her second husband had spent the rest. Bud ended up dying alone in Wasilla, Alaska after having done prison time for stolen auto and growing marijuana.

The book traces their post-trial life and their relationship leading up to the murder. It follows their relationship in jail and critiques the investigation, the trial and the verdict from an ex-cops vantage point.  I obtained access to the trial transcripts, a complete set of investigation reports and considerable knowledge of the families from Ancestry.com.  Some of the trial transcripts and investigation reports are included in the story. 

Available for sale at pay pal at gomw12@gmail.com for $12


Friday, December 16, 2011

Monday, November 21, 2011

UC Davis - an unlikely site for a revolt.

The outrage at the University of California, Davis is a microcosm of the situation in the world today and more specifically to the United States; the futility of the majority of the people, maybe not 99 percent and maybe not victimized by just 1 percent.  Remarkably this has happened at perhaps the most unlikely sites of all the previous demonstrations, the UCD campus. Far more threatening situations, far more inconvenient situations and far more volatile situations have occurred over the last month or so.  It would appear that this is the product of conspiratorial communication between elements of government on how to put a stop to it. Inadequate planning and over eagerness landed their plan an unbelievable setting.  Were it not for the health hazards to the victims, it would seem like keystone cop comedy.

I know the University of California at Davis.  I lived near the campus for ten years.  My son and my son-in-law are graduates of UCD.  My wife retired from the staff of UCD.  My best friend was the chief of the UCD police department in the 80's. The UCD campus is not and never was a dangerous campus.  The police chief who let this happen should be fired.  The Chancellor who let this happen should be fired. The university police department is well trained and certified by the California Commission on Peace Officer Standards and training.  They were taking orders.  They were led by a management level cop, Lt. Pike. For the movement, this was a godsend.  It will give it at least another month of life. For a former cop and a former Bureau Chief of the Commission of POST, I am embarrassed and saddened.  California cops are better than this.

This is a delicate situation for the police and responsible agents of government, particularly local government.  Of course, the first Amendment which guarantees freedom of speech and the right to assemble and redress grievances to government, wasn't intended to permit unlimited access to public parks for an unlimited time and to build temporary cities on public property.  Unfortunately, this is the only way we have of doing it.  We used to be able to do it at the ballot box but we only get one vote each and the corporations now are permitted as many as they can afford and are given the right to openly buy elected and appointed officials.

It's sad that these people, intelligent people, many of whom are now victims of the unemployment situation and many more who will be if government doesn't do something quickly to correct the imbalance of purchasing power, have no other way of getting the ear of their government. The middle class is disappearing and many of the ex-members of it are on the streets demanding action.  This is their lobby and Washington better open their doors and ears to this lobby before it's too late.

Thursday, November 3, 2011

Corporate owned media needs to talk about important qualifications of candidates.

Who cares about Herman's sexual harassment accusations?  Does it really have any bearing on whether he is qualified to be president?  What ever happened to public service media?  What they should be covering is his inane 999 tax program.  Instead of a sensational he said/she said story, we should be some numbers and social implications on the one thing that made him a temporary right wing political darling.

Instead of talking about whether Mitt Romney's religion would make him un-electable, they should be talking about how he made his millions with Bain Capital capital bled  American Pad and Paper Company (Ampad)
dry leaving hundreds of workers out of work, stockholders holding worthless shares; about how creditors and vendors were paid less than 50 cents on the dollar; about how, while exploiting the company, Romney's firm charged Ampad

Over the next several years Romney's firm bled the company dry. Hundreds of workers lost their jobs. Stockholders were left with worthless shares. Creditors and vendors were paid less than 50 cents on the dollar. While they were exploiting the company, Romney's firm charged Ampad millions of dollars in so called "management fees." All in all Romney and his investors reaped more than $100 dollars from the deal with an initial leveraged buyout cost of $5 million. 

The media should be talking about his dedication to the 1% and disdain for the 1% and the vanishing middle class and his promise of repealing the health care act and privatizing social security.

Instead of hearing about Perry appearing in New Hampshire under the influence of pain killer medication, we should be reading about the truth of the Texas economy and the dearth of health care coverage; about how the jobs he created were by making Texas the equivalent of a third world country by providing near slave labor to attract business from states with a minimum labor law.


Wednesday, November 2, 2011

The 99 per centers - what it's all about!

While there are a variety of bases for dissatisfaction driving the Occupy Wall Street movement, a movement that has spread over the country and even in some other countries, the nexus is income distribution and the run-away concentration of wealth at the very top.

There are a number of concomitant factors and/or manifestations of this.
1. Unemployment.  The official unemployment rate is just over 9 percent. If underemployment and forced part time employment is considered, it is likely close to 15%.  Many of the demonstrators are most likely included in this group.  Those workers who have been unemployed but found new jobs, there wages are on the average 17% lower than before.

2. Fear of losing the New Deal programs and the shifting of the tax burden to the middle and lower class.  Paul Ryan's proposed budget epitomizes how far right the Republican party has gone.  If it were to become law, People now under 55 would be required to pay at least $6,400 more for health care when they qualified for Medicare.  Food stamps would be cut by 20 percent. This means that more people in America would starve to death.  Fully two thirds of his $4.3 in budget cuts would come from low income programs. 

3.  The banking regulations like the Glass - Steagall Act which prevented bank failures and loss of savings, like we saw in 1929, until slowly dismantled by Reagan's Supply side economics and the crash of 2008, are still under attack.

A. The failure of congress to address the problem of unemployment and wealth distribution; choosing to make partisan politics by making their number one priority to make sure Obama isn't reelected. 
B. The commitment to ensuring that the wealth distributions continues to direct wealth to the top.
C. Their support of Corporate control over government.

The 99 per centers realize that the focus of the problem is on Wall Street and mega international corporations who have found a fountain of wealth in near slave labor in third world companies, stifling American manufacturing and blue collar well paying unionized jobs. Another, less recognized victim to this pool of cheap labor is manufacturing technology.  Why invent a better machine when you can get the same or more savings from starving people. 

This last few months when Obama has been trying to shame the Greed Oriented Party (GOP) to act on his proposals, they have been preoccupied with crucial legislation ensuring that our motto In God We Trust is not changed!  Ironically they want to trust God but not obey him.  Most of them make a point of claiming that we are a Christian nation but have no idea what real Christian commandments include such as articulated very clearly in The New Testament in Acts 4: 30-37.

The 99 per centers may well be the last chance to avoid a transition of American truly free enterprise capitalism,  not the corrupted "market system" we see today, back to a feudal system as described by Marc Bloch.

The bottom line is, "If all the purchasing power is concentrated in the hands of people who have everything, there will be no one to purchase the fruits of their production. It's not just a moral problem it's a commerce problem!


Thursday, October 27, 2011

Macro economic 1A - Why income distribution is important and must be managed.

The chart below demonstrates the circular flow of output and income. When there is equilibrium in an economy, the amount of the output equals the amount of income as measured by dollars.  When the cost of producing the output goes down for any reason the savings can be passed on to consumers as cheaper prices or retained by the business as higher profits which can result in higher wages for workers,  higher salaries for CEO and higher dividends for stock holders. If there is a balance of all four, lower prices, higher wages and salaries, higher profits, and higher dividends, everyone wins; the pie gets bigger and the slices remain the same. This has not been happening. Households, the suppliers of labor and the primary source of demand have not been getting any of the lower cost of production.

The problem is that the cost of producing the output has been going down because of cheaper labor which reduces the demand for the output. The cheaper labor is the result partly because of automation but mostly by corporate influence on government which accommodates an oversupply of labor either through immigration or outsourcing the work where the labor is cheaper. We have seen both of these elements decimate the bargaining power of labor. Now with the  Citizens United decision, corporations have been successful in states such as Wisconsin and Ohio in eliminating collective bargaining. 

The net effect of this has been an increase of wealth in the corporations owners and the upper income groups and less wealth in the middle class from where the predominance of the consumption comes. The result of this is the increased capacity of producing goods along with an decreased demand for those goods. The result is high unemployment and eventually collapse which will also bring down the producers of the goods.

This problem will not correct itself. The only way it can be corrected is the government redistribution of wealth or purchasing power.  The rich family already has two or three cars, the poor family can't afford to buy one. Government can do this by the three following steps: 1. Increase the taxes on the families who already have a car and lower the taxes on the family that needs one. 2. Restoring the bargaining power of the unions. 3. Creating jobs in the private sector by subsidizing infrastructure improvement and the retaining of teachers, fire fighters, police officer and nursers.


Monday, October 3, 2011

The birth of Colleen, my third child, October 6, 1955

October 6, 1955

My timing was off, I thought as I lay in bed glancing at the iridescent face of the clock on the nightstand.  I had missed the World Series by one full week.  As the sunlight began to filter into the bedroom the faint pains became stronger and were exactly five minutes apart.  With confidence I woke him announcing “It’s time to go now.”  “It’s too early.  What’s the big hurry?  The World Series isn’t till next week!”  While dressing I thought of how different it was this time than when the twins were born.  He was joking instead of being in a panic.  We were in our own home now, and I had just painted the room designated as the nursery pink.  The ironing was caught up and the house was clean.  I had washed my hair the night before and my bag was packed.
            As the motor of the red Buick Special warmed up he asked, “You got the address of this place?”  “Yes, Saint Joseph’s Hospital in Orange on Orangegrove Boulevard.”  “Never heard of it.  Oh well, I guess we’ll find it.”  He had a smile on his face and a great deal of confidence.  After all, this wasn’t like the first time.  He only got lost once along the way.
            Even checking into the hospital went smoothly.  After the birth prep he was with me again holding my hand as the pains became more frequent and intense.
            Soon the doctor ushered him out to the father’s waiting room as the final stages of birth drew near.  Dr. Stout called to the nurse who wheeled in the gurney and gently, with expert hands, they lifted me on to the rolling bed and steered me in to the delivery room across the hall.  Antiseptic clung to the air in the cool, sterile room.  The delivery table was centered in the room and had antenna-like chrome stirrups extending upward from one end.  Carefully I was moved from the gurney onto the delivery table.  I was surrounded by doctors and nurses in green uniforms with gloves and surgical masks and head coverings on.  I had to suppress a laugh, they really looked comical.  After a few bearing down pains, and enormous pressure, I felt a surge of relief and knew the baby I had nurtured inside me had begun life outside the womb.  The sterile atmosphere of the room instantly dissolved as the baby’s first cry was heard.  I gazed in wonder as the doctor laid my warm, wiggly newborn on my stomach.  I felt a mixture of joy, exuberance, love and thankfulness for her.  She was the most beautiful newborn I had ever seen!  Wisps of dark, curly hair capped her perfectly formed head, and as the corners of her mouth curved, dimples appeared on each cheek.
            My stay in the hospital lasted four days, and I felt sorry for the six girls I shared a room with each time they watched the nurses bring my beautiful daughter to me and then had to settle for their own red faced wrinkled little ones.
            People just couldn’t resist coochy-cooing her whenever I took her on outings.
            Today, as a woman, she is even more beautiful and sweet, and I love her dearly.  Maybe that’s why I cry when I hear Stevie Wonder sing “Isn’t She Lovely,” because I knew if I were a song writer that’s just about what I would have written.

Monday, September 19, 2011

Unemployment and the American Jobs Act in Perspective.

Outsourcing  is not the only culprit in the loss of manufacturing jobs.  Many of them have been lost by automation  which is a good thing since it makes products available to more people. All the manufacturing nations have lost jobs due to automation. Automation makes the workers more productive and would be a good thing if the workers shared in the benefits from their increased production. Unfortunately, this has not happened.  The surplus of labor that automation has produced has been used by corporate CEO's to cripple the union movement and reduce wages; the purchasing power is not only  hurt by fewer workers, it is hurt by their lower income.  The fruits of the increased productivity has resulted in higher concentration at the top where the marginal propensity to consume is much lower. In other words, these people don't spend the extra money on consumer goods but, rather, invest it in profitable international corporations which are profitable because they are using cheaper foreign labor.

Manufacturing jobs are not the only kind of jobs that are important, however, and it's the other kind of jobs and services that are hurting the American economy by shipping jobs overseas. One of the problems in having so much of our goods and particularly services produced overseas is that conventional Keynseian spending creates overseas jobs. That is why the The American Jobs Act is more promising than merely putting money in consumer's hands, although there is a lot of that in the act too. The key element, in the opinion of some economists like Robert Reich and Paul Krugman is the insertion of money into the economy by addressing the crumbling infrastructure, public transportation and keeping vital public employees such as teachers, cops and firemen on the job, paying their taxes and spending money. Both, however, believe that it is too small.

This is only a short term solution, however. The long term solution requires revisiting our entire philosophy and laws on international trade and scaling back the political power of international corporations.


Wednesday, September 14, 2011

Letter from committee to elect Alan Grayson

Dear Brooks W.:
Last night was a Grayson Double Feature on National TV – first Countdown with Keith Olbermann on Current TV at 8 pm, and then The Ed Show on MSNBC at 10 pm.  The subject was the Tea Party audience's call, at Monday's Republican debate, for an uninsured 30-year-old to die.  Here is what Alan Grayson said on Countdown:
Keith Olbermann:  In 2009, my next guest anticipated last night's Tea Party call to let the uninsured drop dead without medical care.  Alan Grayson, then a Florida congressman, got on the floor of the House and said, "The Republicans want you to die quickly if you get sick."  To say he took a lot of criticism for that understates the case just a little bit. And as last night proved, he was right.  I'm joined now by the former Florida congressman Alan Grayson. Good evening sir.
Alan Grayson:  Good evening.
Olbermann:  Your immediate reaction to last night?
Grayson:  Well, in fact, it does prove that I was right, but I wish I were wrong.  We belong to a 3,000-year-old tradition where you shelter the homeless, you feed the hungry, and you heal the sick.  And it's amazing to me that at this late date, after all this time, we're still debating a fundamental question like this.  We have so many problems in this country.  We have 23 million people who can't find a job, a full-time job.  We have 47 million people in this country who need the government's help to feed themselves.  We have 50 million people in this country who can't see a doctor when they are sick.  We have 15 million families who owe more on their mortgage than the value of their homes; all those people could end up very quickly living in their cars. And to all those people, the Tea Party has only this to say, all they want to say to them is, "You can go to hell."
Olbermann:  And there's even one stage beyond that, isn't there? I mean, it's really, "I'd rather see you die than see my taxes go up, or my taxes not go down." Is that where we are?
Grayson:  No, it's worse than that. They see, they take pleasure in other people's pain. The interesting thing about them is they have this enormous threshold for pain, as long as it's someone else's.
Olbermann:  Yep.
Grayson:  That's the saddest thing. It's sadism.
Olbermann:  Alright, when we see sadism, I've noticed a dearth of some degree of anger. I felt it within, but I'm even sitting here now, it's hard for me to express my reaction to this in terms of anger. And you and I have both gotten angry on this very subject. Is it more sadness or horror that these are the people who live among us?  Or is this something that we have to contend with to make a society that isn't handing out bouquets and gold bricks to everybody, but is just keeping everybody alive for a couple of extra months or a couple of extra years or as long as they possibly can be.  What do we have to, what is the appropriate response?  What is the functional response to this?
Grayson:  Listen, 2000 years ago, it's these same people, the same kind of mentality that was cheering when the lions ate the Christians.  It's always been with us. There's always been a dark side to us, but we have to fight it.  We have to make sure that, in the end, we are decent human beings.  Look, I was on a plane today and somebody saw that I was in the front of the plane, and my bag was in the back of the plane.  He took the bag; he brought it to the front of the plane. I don't know his name.  I'll never see him again.  I have no idea who he is, but he showed me human kindness.  Not just American kindness, but human kindness.  That's who we really are.  Any there's plenty of us who recognize that.
Olbermann:  And not to turn this into sermonette or something, but the Tea Party, as you know, infuses religion into everything.  Where was the Christianity in that response last night? That sounded more like devil-worshipers to me actually.
Grayson:  Right, I would suggest they go back and read the Sermon on the Mount.  Maybe it will have new meaning for them now.
Olbermann:  And again, to try to figure out what to do about this. It's seemingly much more of a dilemma than you would think at first glance.  As I said, I'm having trouble summoning the anger, even though I know I feel it.  It's more horror and as if you knew a great, terrible truth was revealed last night, and you need to tell people about it.  Should the Democrats run with that clip? Should that be a part of everybody's campaign next year, that one little sequence or an explanation of what that means?
Grayson:  What it comes down to is very simple, and you don't just see it only on that clip, because it does summarize it, but it summarizes a much larger truth.  The larger truth is that these people who claim to be pro-life are actually pro-death.  And they glorify and sanctify other people's pain.  That's what it comes down to. They are callous, bigoted tools. And that's the so-called "loyal opposition" these days in America. And that's the underlying truth that Democrats failed to bring out in the 2010 election and must bring out in the 2012 election, or God help us all.
Olbermann:  Indeed.  How do we do it?
Grayson: Oh, very simple. Show people that clip. Make the point. Don't feel like you have to compromise when you're talking about people's lives, when you're talking about life and death. There is no compromise between life and death.  You take away people's Social Security, you're hurting old people. You take away people's Medicare, you're hurting old, sick people. You take away people's Medicaid, you're hurting, poor, sick people.  That's the truth that needs to be brought out:  the pain that corresponds to taking all these things away from people.  You know, the thing that has motivated the Tea Party, it seems, is a fear.  They claim that something's being taken away from them. And they're using that fear to take away something from everybody else, and that's the sense that we're all in this together; that we do have responsibilities to each other; that I am my brother's keeper.
Olbermann:  "There is no compromise between life and death." Well said, sir. The former and, we hope, the future congressman from Florida Alan Grayson. Thanks again. Good to see you.
Grayson:  Thank you.
There is no one else on the national scene today who so plainly speaks the truth, the whole truth, and nothing but the truth.  WE NEED ALAN GRAYSON BACK IN CONGRESS!  Click on that red button below -- show your support for Alan and for America.  Every dollar counts.

Wednesday, August 31, 2011

Balancing the budget is like a dog chasing it's own tail. It ain't gonna catch it.

Trying to balance the budget by cutting spending is like a dog chasing it's tail. He just goes in circles until he collapses in exhaustion.  Spending reductions by government aren't restricted to the public economy. Every dollar spent by government, with the exception of those spent on private contractors in Iraq and Afghanistan, enters the private economy.  Teachers, cops, firemen, and doctors who are paid by Medicare, all spend their money at the local market, restaurant, auto dealer, clothing store or theater. And who in our community contribute more to that community than teachers, firemen, cops and doctors?

Conversely, when you fire them or cut their pay, you reduce the number of dollars entering the private economy and private income goes down, spending goes down, the deficit increases and government has to try once again to reach a balance by firing more public employees and cancelling government contracts with private firms. The dog runs faster, even more futilely, and eventually collapses. This is happening right now. Make no mistake about it. No one will escape it. The GOteaParty is trying to escape by balance the budget in the most unfair way, on the backs of the poor.  International corporations think they can escape by globalizing their market but as the world situation worsens, they will be caught up in the collapse as well.  Some of the more enlightened ones know that and are privately pushing for a jobs bill.

The only way to reduce the deficit, or more realistically, slow down it's growth, is by raising revenue by making those people pay more who are getting more from the economy. The upper income group and corporations. The money taken out of their pockets, or portfolios, wasn't going to be spent at the local market, auto dealer or restaurants, anyway. It was going to be spent on more speculative investments or on firms who are successful by exporting jobs where they can get below subsistence labor.

Low income Teaparty members demanding reducing the deficit are going to be the first ones hurt! The mantra, households have to balance their budgets and so should the government, borders on stupid...no it goes beyond stupid. How many families actually do that.  The golden age of the greatest middle class in history, 1950 -1980 was enabled by borrowing; borrowing to buy homes, automobiles, furniture and even clothing. The key has always been to maintain the ability to make payment on the loans. The same is true of government.  The Federal government has ALWAYS had public debt. It has always been measured by it's percentage of GDP or Gross Domestic Spending, a measure of national income.

At the end of WWII, our national debt was 105% of GDP, the highest in history. Although worried about it, our government worried more about the welfare of those people who had just rescued the world from the worst threat in modern history.  So they spent more money on the GI Bill, sending GIs to school and on guaranteeing low interest loans for purchasing homes and automobiles. The result was a burgeoning housing market  that created millions of union jobs. Everyone benefited. The bank loans were all paid off, the banks made money, full employment meant more tax revenues and guess what, the budget was balanced.

Balancing the budget in 1941 would have meant making Japanese our official language and in 2011 would mean an even worse fate.  A neo feudal society.


Thursday, August 25, 2011

The four most harmful and incorrect mantras of the GOteaParty.

1.  Small and non-intrusive government is intrinsically better. "That government governs best that governs least," "government is not the solution to our problems, it is the problem."

Fact: That's what we had in 1929 and what we regressed to again in 2008. And those who complain most about intrusive government have no problem spending trillions of dollars invading countries on behalf of commerce.

2.  Entitlements like Social Security and Medicare are harming our country because it makes people dependent on government instead of their neighbors and institutions.

Fact: Government is an institution and was established precisely to help people who need help and from whom it derives it's authority.

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, (sic) promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Before we had the so-called entitlements, poverty level of elderly was 35%. After Social security it fell to 10%, and it's not because old people are lazy, it's because old age makes one less employable.

3.  The Bush tax cuts to the wealthiest Americans led to job creation.

Fact: They have been in effect for ten years; where are the jobs. Wealthy people spend a smaller part of increased income on job creating consumer goods than do less wealthy people who spend nearly all of it.

4.  Government needs a balanced budget amendment and balance their budget annually like families and business.

Fact: businesses and families don't. If they did, our economy would grind to a halt.


Wednesday, August 24, 2011

Why Obama is failing. The GOteaParty sole goal is to make him fail.

And they are succeeding because they are focused and he is weak and wants to be a good guy. In our disappointment with Obama, Progressives and Liberals need to lay at least half of the blame on a party that is willing to destroy the country's economy rather than see a black president succeed. They have been funded by international corporations who see economic disaster as an opportunity to insert Milton Friedman's supply side economics. They have done it in country after country as narrated in Naomi Klein's book, Shock Doctrine.

Shortly after my discharge in 1952, I was hired as a cop by the Anaheim Police Department. From that day forward, most of my friends were cops. I love cops. They are the best people in the world except for their attitudes about blacks; pure irrational hatred for the most part and they were part of a huge percentage of the population. I still wasn’t very political but I became more vocal in defending them when the civil rights movement developed.  We had some heated discussions in the station house and in the local watering holes.

After the civil rights bill was passed the schools and neighborhoods were gradually integrated, people got to know them, made friends with them, played ball with them and married them. Racism, at least as it existed before, phased out and those who were unable to make the adjustment were outnumbered and learned that if they were too vociferous, they would be isolated. But their hatred continued to simmer down deep.

But we have entered into a new phase. We learned to accept our next door neighbor being black, the mixed marriages, seeing a black doctor and, in the south, letting them ride in the front of the bus. We grew to love, even worship in a sense, the black athletes who play on “our” teams. Most of us, at least more than 50% of us are even ready to have a black President; but not all.

The thin veneer of decency and tolerance of a relatively small group of our citizenry has been overcome by their reemerging and now un-controlled hatred. These people have taken over the Republican Party and have become irrationally vocal. You saw them at the Town Hall meetings where they completely blocked any dialogue.

They have kept their racism and hatred below the surface for the past thirty years or so because blatant racism became unpopular. Now the election of an African American president has brought it back to the surface. They are so blind with rage, they no longer care what decent people think. They have retreated into their own ideological commune. Of course there has always been the animosity between the right and the left that had nothing to do with race. But the re-emergence of racism has intensified that as well. Politics has become ugly and has to a large extent grown to define friendships. I can remember when you were more likely to get into a shouting match over whether your Ford was better than his Chevy than over who was running for president.

An example of this hatred can be seen in the opposition to Obama’s programs – particularly health care reform. Of course rational opposition to the health care reform that has just become law can exist. But there has been no rational debate. The opposition, aware that the status quo is not defendable, at least as it relates to the vast majority of Americans who don’t own insurance companies or who earn less than $250,000 per year, have resorted to mendacity, pure lies on the extreme, and distortion as a minimum.  The opposition has been fueled by hatred not logic and has resulted in the so called Tea Party. They are a potpourri of opposition and hatred.  The most visible thread of commonality is their hatred of Obama.

Proof of their willingness to destroy the economy was apparent in the recent debt ceiling debate. Unfortunately, Obama's weakness let them use the debate as a basis for destroying the economy by destroying the middle class, ending publlic education and the safety nets for elderly and indigents. With the help of this reemerging hatred, the globalized corporations may well have their way. When the do, they will learn that owning a bigger piece of the pie or the entire pie will do them no good if the pie disappears.


Wednesday, August 17, 2011

We have seen the enemy and the enemy is US....

1. The filibuster.  The GOteaParty hasused the filibuster 62 times in the first session of the 110 Congress.  The filibuster has outlived it's usefulness.  We no longer have government by the majority. We don't even require that they actually talk a bill to death, they just have to announce their intention to do so. Without it, our country and economy would be significantly different.

Health care would include a public option or maybe even single payer. This is just one of the provisions the threat of veto killed. There were others. Ironically, and hypocritically, they opposed individual mandate which they themselves proposed when Clinton was president.  Adding to their hypocrisy, they have always opposed Medicaid calling beneficiaries freeloaders but are now challenging the provision on the basis that it is unconstitutional and unfair to force someone to buy something they don't want.

The stimulus bill would have been much larger without the threat of filibuster. It was successful but too small. It is credited by the CBO for creating 3.3 million jobs. That was just not enough and most economists , like Paul Krugman predicted it would be too small.

The threat of the veto in other budgetary issues force Obama to agree to an extension of the Bush tax cuts.

Without the filibuster, we would have a public option in the health care act and would have been on an inexorable path to elimination of profit in the health care industry, the economy, arguably, would be on the way to full recovery and with the additional revenue from the higher tax brackets for the rich, our deficit would have decreased.

Given these changes, the Teaparty would have remained a unfulfilled dream of the Koch brothers.

2. The scotus. The Citizens United vs FEC decision has threatened democracy and will destroy it if not overturned or somehow neutralized. We have seen how the influx of corporate money can influence elections. Alan Grayson, arguably the most popular and progressive legislator in congress was defeated in his own district. We have seen the near election of a voiceless, nearly invisible, candidate in Nevada. We have seen it organize and fund a group of dissidents who's only commonality is hate, mostly hate of an African American president; and we haven't seen anything yet!

We continue to be stunned at the seemingly insane antics of people like Bachmann and Perry. But don't sell them short. They may prove to be crazy like a fox. Their tactics amaze the mainstream politicians of both parties but electrify the right wing who, by their own insanity, have frozen the conventional Republicans with fear.  One of them will likely be the presidential candidate for the GOP and with the inexhaustible supply of money, don't be surprised if he or she wins! Every American should go to sleep each night and wake up each morning with the fear in their heart of seeing Perry or Bachmann in charge of the western world.

3. The potus. I think I reflect the majority of liberal/progressives who were elated with his election. I still love the things he tried to do but his appointment of people like Geithner, Bernake and Emmanuel make me wonder...as does some of his campaign contributors. He has not led. He has been weak and reminds me of a boxer who is afraid of his opponent and is continually back pedaling, covering up and fending off punches. His naivete is exceeded only by his failure to accept reality. Even today, after a near catastrophe with the debt ceiling, he continues to talk of bi-partisanship.  


Thursday, August 11, 2011

A Mormon's view of the 20th Century: The Rise and Fall of the American Middle Class

Mormon tells story of his life in juxtaposition with contemporary United States history

'A Mormon’s View of the 20th Century: The Rise and Fall of the American Middle Class' by Brooks W. Wilson gives unique religious perspective with his experiences during the last 80 years of American history.(PR NewsChannel) / June 22, 2011 / RANCHO CUCAMONGA, Calif.  
In ‘A Mormon’s View of the 20th Century: The Rise and Fall of the American Middle Class’ (ISBN 1461135982), Brooks W. Wilson takes readers back to 1929, when America’s first economic crisis began. Wilson tells the story of the generation that experienced the Great Depression, the New Deal and three major wars, and grew into what he considered to be the strongest middle class in history. He believes this generation is now struggling under economic policies that shifted wealth from consumer to investor.
Wilson’s story is typical of his generation, but he tells it through his perspective as a Mormon. He worked his way out of poverty while simultaneously getting the education that he could and serving the United States in the Korean War. As a Mormon, Wilson’s faith ran counter to the rise and fall of the middle class. When the middle class was growing, his faith was waning. As the middle class was weakening, his faith was growing, and he returned permanently to his faith.

The author’s degree in economics allowed him to study the Great Depression and relate it to his various work experiences in construction work, law enforcement and house building. He argues that the globalization effort of today is not beneficial to the country. He also draws upon his life as a student in South Gate and Fontana, California, his law enforcement experience as well as his time as a paratrooper in the 82nd Airborne.
“My story is about a man who observed history unfolding and took part in it,” Wilson says. “I believe the takeover by international corporations of our proud nation will cause the imminent fall of the American empire.”
Readers will look into the history of an era that shaped the nation as well as see the effects it had on a man’s Mormon faith. He believes that the information and experiences in ‘A Mormon’s View of the 20th Century’ are pertinent to readers as the country goes through another financial struggle.
‘A Mormon’s View of the 20th Century: The Rise and Fall of the American Middle Class’ is available for sale online at Amazon.com and other channels.
About the Author:
Brooks W. Wilson received his associate’s degree in police science, his bachelor’s in economics and his master’s in public administration before working for 25 years in law enforcement, administration, investigation and research. Wilson has had several reports published by the state of California such as ‘The Growth and Development of The California Commission on Peace Officer Standards and Training’ and ‘The POST Training Program: A Review and Critique.’ He has also worked with the state of New Jersey as an expert in police training.

Wednesday, August 10, 2011

Solar energy - My best, and only stable, investment I have...

I just turned my solar system on. The meter is running backward, putting electricity into my bank, so to speak. After I get my tax refund next year, I will have around $19,000 on my roof - just sitting there. My average power bill the last two years was $156. My system will reduce it to an average of $5 per month (and that is this year, SCE has asked, and will get, a rate increase next year).  That adds up to $1800 a year. That adds up to a 9% return on the investment and it will increase every year.

The frosting on the cake is that it creates non-exportable jobs. I had to do some searching but I found a solar system installer that uses American made solar panels. More USA jobs. I bought my system from Spartan Electric Systems from Glendora, CA. David Schoepf, 626 869 7747. I recommend him. You can take his word to the bank. You can find his wall on Facebook under Spartan Electric Systems.

Monday, August 8, 2011

America is in more peril today that it was on December 7, 1941!

We knew who the enemy was then and we were united against him. Today, the enemy is too ambiguous to isolate and fight. At least it would seem so, listening to what the media reports. But, actually, if you look past the media and look at history, both long term and short term, it becomes much more clear.

Just 12 years ago, our economy was humming and we had a surplus in our annual budget for two years. I am not talking about the debt, I am talking about the annual budget - revenue vs expenditure. We were taking in more than we were spending. The Congressional Budget Office projected that in years 2009 to 2012, we would be running an $800 billion annual surplus. Today, the government is expected to run a $1.2 trillion annual deficit in those years. That is roughly a $2 Trillion swing and you can attribute about 10% of that to Obama's programs. Much more comes from his continuation of the Bush wars and tax cuts. 

The times article criticizes Obama for not  having a realistic plan for eliminating the deficit, despite what his advisers have suggested. But that is not what Obama should be criticized for; he should be criticized for letting the Teaparty led republicans bully him into moving the focus of his agenda from creating jobs to austerity. Austerity at this time is going to lead to further deficit. Count on it. 

When Bush took over the total national debt was $5.67 Trillion. When Obama took over it had more than doubled to $13.56 Trillion.

Today, the stock market is taking another dive because our credit rating has been downgraded from AAA to AA by the same firm that gave a thumbs up to the packaged mortgages being pedaled just before they proved worthless and started the banking melt down.

But let's be fair about Obama. He didn't cause this mess. He didn't give the ill advised tax reduction to the upper income groups and he didn't invade Iraq. He wasn't the one who caused the credit rating downgrade by putting us on the brink of default and scaring the hell out of investors.  I won't support him in 2012 but the reason isn't because of the mess we are in but because he didn't fight to prevent it. Make no mistake about it, the deck was stacked against him. The sole, and stated, goal of the GOP was to make Obama fail...even if it meant hurting the people in this country.  It is beginning to appear that his primary goal is to make sure he is...even if it hurts the people of this country. He didn't fight and he didn't lead, he capitulated to give the appearance of a reasonable man. In politics in these days, nice guys finish last.

There was not much he could have done about the GOP gutting his stimulus package. They had the filibuster! But he could have been a little more pugnacious in the process. He did get a disappointing but respectable health care bill passed but he didn't fight for the one thing that would have made it indestructible, the public option. And he could have done that, or at least ask the Senate to do it, through budget reconciliation. He chose, rather, to take the hat-in-hand approach. A public option, giving everyone the opportunity of buying into Medicare would have been the death knell of profit making health insurance companies.

Today, we still have the debt with all the dialogue and worry focused on it while the underlying and most urgent problem is unemployment. Unemployment is about people, the debt is about numbers. The only way we can get people back to work is through running a deficit and waiting for full employment to address the debt. We have done that in the past. In 1945 the debt was 105% of GDP and we paid most of it off in just a few years when employment was full and everyone was paying taxes (and whining about it, by way of side note). The deficit can be addressed and mitigated, however, by increasing taxes on those who won't reduce their spending because of it, by bringing our troops home and drastically cutting defense spending; we are in no danger of invasion.

Of course, there are some problems with traditional Keynesian economics because, for example, the additional dollars in the economy that are spent on consumer goods do as much for creating manufacturing jobs overseas as it does for domestic jobs.  But service jobs are jobs too, and the income serves their family. Bringing manufacturing jobs back home should also be addressed soon!

Getting back to the real enemy, it is unequal distribution of wealth and corporate power. As Robert Reich says in his book, Aftershock, when income is concentrated in relatively few hands, demand for goods shrinks because the very rich do not nearly spend everything they earn. They hoard their savings and invest it in speculative ventures like packaged mortgages or spend it overseas. Only when domestic demand begins to pickup do they invest at home.

The problem isn't likely to get fixed and that is why we are in peril. Corporations have taken over the government...and it's only going to get worse.  Disparity in income will get worse, wages will continue to fall, shrinking demand will lead to more unemployment. 10% unemployment will become the norm and like the never ending wars will no longer attract interest. Sooner or later businesses will not be able to supplant loss of sales in America with sales in other countries and their bottom will fall out along with Main Street, USA.

Personally, I feel betrayed because I voted for change and Obama didn't do it.  He said all the right things to get the support of liberals like me but it was a facade. He says, "tax the rich" but he doesn't really intend to do it. He has backed down on the issue twice. His appointment of Geithner, Immanuel and Bernanke should have been the first clue. I hate admit it but Hillary would have been better.


Friday, August 5, 2011

America is in decline_____Noam Chomsky


And I agree with him. From chapter 13 in my book.
It’s not over til the fat lady sings; or til it’s over!  I still have a few kicks left in the boots and my worst fear is that I will live another 20 years........ I like my chances of survival better, however, than those of this country, at least this country that I was born in and a huge hunk of whose history I shared. As a Mormon, like other Christians, I believe in the Resurrection and eternal life. There is no doubt in my mind that I will be around long after the United States is a couple of chapters in future history books…assuming that this world is still around to record history. 

I’m glad I won’t be around to see the end. This isn’t the America I grew up in! America doesn’t make things anymore. We just finance those foreigners who do and swap money around. We have become a country of money changers. As a percentage of Gross Domestic Product, manufacturing has fallen from a 28% in 1945 to 12% in 2010.  For someone my age, you don’t need statistics to know this. In the 50 years since our middle class reached a peak in the 60s, our work force has changed from blue collar to white collar. Not that there is anything intrinsically wrong with this; it’s a symptom not a cause of our employment problems which began in  2008.

Looking back at the days when I was a young married man, most everyone I knew either worked in the building trades or in factories; mostly small family owned factories but some worked in large corporate factories. There were a few bookkeepers and accountants and sales people. I had some friends who taught school and some who ran their own small businesses. We were the new middle class produced by the social legislation of the New Deal and educational opportunities provided by the GI bill.

Low cost real estate loans not only provided affordable housing for millions of Americans, it provided well-paying jobs for construction workers.  Housing developments sprang up all over the country. What was nice about our country then was that most of us knew our boss. The furniture, clothing, cars, and most everything we spent our money on was made in America.

But something happened on the way to Utopia: Ronald Reagan and his supply side economists were not satisfied with enough and had no stomach for sharing. They resented the limitations that the New Deal had placed on them. They wanted to return to the unfettered financial manipulation of the 1920’s the kind of wheeling and dealing that caused the Great Depression. Thanks to Reagan, the Bush’s and Clinton, they got their way.

One of the barriers to getting more of the pie was organized labor. Reagan’s amnesty brought in hundreds of thousands of union busting laborers. That took care of the jobs that couldn’t be exported and the free trade agreements enabled the burgeoning world of multi-national firms to export the jobs to countries where virtual slave labor was abundant.  Wal-Mart whose sales exceed the GDP of many nations, including Sweden, Austria, Norway, Denmark and Saudi Arabia, is the epitome of the misery free trade has wrought and is invisible when you buy a shirt from them; a shirt we could still afford if it were made in the USA by workers earning enough money to buy a shirt themselves.

What we are seeing today, with this economic crisis is the fruit of the 30 years of Reagan’s supply side or trickle-down economics. Until, and unless, we reverse it and return the jobs back home through the Alexander Hamilton-like protectionist trade policies, most of us will be standing at the door of the elevator waiting for the driver to return and take us back up to an upper floor with 10% unemployment being the norm.

“President Grover Cleveland in the 1888 State of the Union address had this to say:
“The gulf between employers and the employed is constantly widening, and classes are rapidly forming, one comprising the very rich and powerful, while in another are found the toiling poor.

As we view the achievements of aggregated capital, we discover the existence of trusts, combinations, and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel. Corporations, which should be the carefully restrained creatures of the law and the servants of the people, are fast becoming the people’s masters.”

This unsustainable condition continued to retrogress until it reached a point in 1929 where the system collapsed from lack of consumers who could afford to buy the products they were making. In 1928, one year before the global economic collapse, the wealthiest .001% of the U.S. population owned 892 times more than 90% of the nation’s citizens. There are many micro theories for the collapse of the economy then but the lack of consumers permeates all of them. As bad as it was then, it’s worse now! Today, the top .001% of the U.S. population owns 976 times more than the entire bottom 90%. This again is not sustainable, and makes for a very volatile economy.

The recent financial crash was a result of too much money in the hands of too few people who had nothing to spend it on. Their larder was full! Had it not been for help from the government, we well may have had a collapse worse than in 1929. Bailing the banks out, however, did nothing for the average American who was thrown out of work by the collapse of the building industry and the collateral reduction in business activity. The obvious reaction would be a healthy application of Keynesian Economics. Ironically it was resisted by the very ones who survived only because of it; financial aid from government. The decision by the Supreme Court giving corporations all the privileges of being deemed a “person” without any of the responsibilities enabled them to funnel money into the electoral process and determine the outcome of elections.

We literally, now  have a government at the federal level that is de facto owned by international corporations. With the weakening of our government as a protective entity, we are in real danger of becoming what Marc Bloch describes as a “feudal society” in his book by that name, with government by, for and of the rich. It’s a cold hard fact that there is no such thing as laissez faire. It can’t exist for long. Either you have a government that controls business or business that controls government. A healthy stable economy requires a balance – as we had from the end of WWII until the slow dismantling of New Deal legislation and the rebirth of supply side economics. Capitalism is a harsh appeal to selfishness and unchristian darwinistic survival of the fittest. Its sole redeeming quality is that it has been very effective at producing goods and it will only continue to do this as long as good government prevents it from emasculating itself

Thursday, August 4, 2011

Current Economics 1A or none dare call it treason and none can call it reason!

Before we get into the incredibly reckless brinkmanship and the disappointing pusillanimous naivete of President Obama, we need to know where we are and how we got here! Obama didn't cause this problem, but he let it gain momentum through lack of leadership and courage. For those who just want to bash Obama, skip the six listed background points.

1. In 2001, Bush took over a balanced budget.
2. In 2009, Obama inherited a $1.4 Trillion deficit, primarily caused by the war in Iraq and a tax cut, most of which went to the top 2% income group, and which is now scheduled to expire in 2013.
3. The financial collapse of 2008 was initiated by the collapse in the housing bubble which had been created by creative financing and sub-prime mortgages. It was hopelessly exacerbated by the shadow banking system marketing worthless packaged mortgages.
4. The financial meltdown spilled into the rest of the economy which went into a tailspin.
5. Obama passed TARP which successfully bailed out the financialy institutions and passed legislation designed to stimulate the economy.
6. Congress willingly went along with bailing out the financial institutions but Republicans resisted the legislation to stimulate the rest of the economy - or Main Street, as it were. Even though a minority, they had enough numbers to filibuster and forced a reduction in the stimulus bill and most economists predicted that the reduced spending would not bring out a complete recovery. Paul Krugman predicted unemployment would reach double digits. Notably lacking in the package was aid to local governments which was killed by Republicans.

This is what Obama was facing during the debt limit crisis. The deficit has increased by $10 Billion in is first 2 1/2 years, a relatively low percentage increase. But he could have eliminated it by letting the Bush tax cuts expire earlier this year and by truly drawing down our forces involved in the oil countries wars. Shame on him, he has to share in the blame but let's keep it in perspective; the deficit is mostly Bush's fault.

In the 2010 election, approximately 40 members of the Teaparty were elected to the house and 10 to the senate. A small group of eccentrics or ideologues that many ridiculed but their success drove moderates further right and with the ineffectiveness of Boehner, they have effectively paralyzed the Republican led house, and have scared the fight out of our president.

Without enough votes to get their way on any issues, they have reverted to what is being called hostage taking. And hostage taking is what they are calling it themselves with support from Boehner and McConnell! They effectively forced Obama into extending the Bush tax cuts to 2013 with an earlier threat of not lifting the debt ceiling and again in the recent debacle. In spite of the overwhelming evidence that default would be a catastrophe, they were willing to destroy our economy, our country actually, if they didn't get their way. As a matter of fact half of them voted against it anyway. Several, Bachmann and Rand Paul for example, indicated that they would not vote to raise it under any circumstances.

This doesn't border on treason, it IS treason; legal but treason never-the-less. Sadly, it didn't have to happen. A courageous president would have invoked the 14th Amendment, paid the bills, and taken the opportunity of using the debt ceiling for ransom forever off the table. I can almost guarantee that George W. Bush would have done it. Bush was a bad president but I wish Obama had his determination and courage. This small group of lunatics, with the help of the corporate press forced the president from a focus on unemployment, where it should be, into their obsession with austerity. Austerity is anathema to economic recovery. We should have learned that  in 1929. Obama's weakness has totally obliterate the advantage Democrats would have had in 2012 by creating a bigger schism in the Democratic party. The good news is that the Republicans won't win in 2012, the bad news is that Obama will.

Sadly, the drop in the stock market over the last 8 days, capped by a 612 point drop today, is only a symptom of what is to come. You can't create jobs at the same time you are cutting government spending during a recession. This is Keynesian Economics 1A and, as Nixon put it, we are all Keynesians now.


Monday, August 1, 2011

Lucy pulls the football out from Obama - again. Now we know!

Obama is a failed president. Not just progressives and liberals but all traditional democrats should be disappointed and embarrassed.  The Teaparty led GOP has been rescued from their own stupidity and party split by Obama who has created an even bigger one on the left. Conservatives will be screaming, "I told you so" but in fact, they were dead wrong about him and maybe even should have been supporting him. The difference between liberals/progressives and conservatives is the latter's position and and rhetoric changes with their hero. They continued to support Bush even when it was obvious to the world that he had failed. Obama will not have that advantage. We are true to our beliefs and will discard in a nanosecond a politician who betrays us. I will say, however, that it took us too long to realize it. We should have gotten suspicious when he appointed Emanuel, Bernanke and Geithner. Personally, I was suspicious but I should have known.

Obama's willingness to accept tax cuts for the rich, in spite of his early "no compromise" promise on the issue along with his non-Keynesian sacrifice of job creation for austerity as long as the debt ceiling discussion was postponed until after the election makes it clear that he is as fixated on being reelected as much as the GOPhonies are on making him one term!

What happened to his change we can believe in? He has failed us at every turn. Health care reform was an improvement but it lacked one thing that would have been a game changer, the public option. It would have sounded the death knell of health care for profit in the USA. He had the votes in congress and he had public opinion. What he didn't have was guts...or desire. He was either snookered or bought by the health insurance industry!
Look at all the other issues on which he caved in:
Closing Guantanamo: it's still open and prisoners remain with in-determinant sentences.
The stimulus:  he let the right wing cut the teeth out of it.
Ending the wars: his draw down in Iraq is phony - low paid troops are replaced by high paid contractors who pay no income tax, we're bogged down in Afghanistan and who knows what we're really doing in Libya? Privatization of the war continues unabated.

Our liberal/progressive media people have been very patient, telling us that he is better than the alternative and a challenger to a sitting president is a lost cause. So what. He isn't getting the job done. We need to pick someone else. We cannot wait another four years; by then it will be too late. We should support someone who really supports the people, someone like Bernie Sanders or Alan Grayson. If they lose to someone like Mitt Romney, at least we will have a clear enemy instead of an ambiguous and prostrated leader who is lead by the nose by the Teaparty!