Republican

Charles Ferguson ~ America’s Duopoly Of Money In Politics And Manipulation Of Public Opinion

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Common Dreams | October 4 2012

Mitt Romney and President Barack Obama talks after the first presidential debate at the University of Denver. (Photograph: Charlie Neibergall/AP)
Presidential campaigns aren’t where you look for honest, serious discussion of economic policy. Usually, the candidates confine themselves to slogans; sometimes, as with George W Bush, we also get a moron. But in this election, something very different is going on. For the first time, we are explicitly seeing the effects of America’s new political duopoly.Mitt Romney and President Barack Obama talks after the first presidential debate at the University of Denver. (Photograph: Charlie Neibergall/AP)

Both Obama and Romney are very intelligent men. And yet, both of them are completely avoiding, or being dishonest about, huge economic issues – even when their opponent is highly vulnerable to attack. Thus, we have the bizarre spectacle of a Republican ex-private equity banker attacking the Democrat on unemployment, while the Democrat argues gamely that if we just give him more time, everything will be fine – which we all know is not true. Both men say vaguely that they will “reform Washington”, when neither means it.

Neither of them says a serious word about the causes of the financial crisis; the lack of prosecution of banks and bankers; sharply rising inequality in educational opportunity, income and wealth; energy policy and global warming; America’s competitive lag in broadband infrastructure; the impact of industrialized food on healthcare costs; the last decade’s budget deficits and the resultant national debt; or the large-scale, permanent elimination of millions of less-skilled jobs through both globalization and advances in robotics and artificial intelligence.

In a time of pervasive economic insecurity, with declining incomes and high unemployment, four years after a horrific financial crisis, how can all of these questions be successfully ignored by both candidates?

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Paul Craig Roberts ~ USA To Continue Its Wars As Long As Dollar Remains Reserve Currency

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Paul Craig Roberts | September 25 2012

Pravda.Ru interviewed Paul Craig Roberts, an American economist, who served as an Assistant Secretary of the Treasury in the Reagan Administration and became a co-founder of Reaganomics – the economic policies promoted by the U.S. President Ronald Reagan during the 1980s. We asked Mr. Roberts to share his views about the current state of affairs inside and outside the United States.

Pravda.Ru: Mr. Roberts, you are known in Russia as the creator of Reaganomics, which helped the country overcome stagflation. What were the key aspects of that policy and how would you estimate its results today? Do you think your faith in free market has shattered?

Paul Craig Roberts: Free market means the freedom of price to adjust to supply and demand. It does not mean the absence of regulation of human behavior.

Reaganomics was a political word for supply-side economics, a new development in economic theory. In the post World War 2 western world, governments used Keynesian demand management economic policy to control inflation and to boost employment. John Maynard Keynes was the British economist who explained the Great Depression in the West as a consequence of insufficient aggregate demand to maintain full employment and stable prices.

Keynesian demand management relied on government budget deficits and easy monetary policy (money creation) to stimulate demand for goods and services. To control inflation from too much demand for goods and services, high tax rates were used to reduce disposable income.

The problem that developed is that the high tax rates on income made leisure inexpensive in terms of lost current earnings from not working, and made current consumption inexpensive in terms of lost future income from not saving and investing. In other words, high tax rates on income made leisure and current consumption cheap in terms of foregone present and future income. Thus, high tax rates on income depressed the supply of labor and capital.

Using the UK’s 98% tax rate on investment income (pre-Thatcher), the Nobel economist Milton Friedman illustrated the problem with this example. You are an Englishman with $100,000. Shall you invest it for future income, or shall you purchase a Rolls Royce and enjoy life? The true price of the Rolls Royce (or Bentley, or Ferrari or Maserati) is not the purchase price. The price of the exotic car is the foregone future income from not investing the $100,000.

Suppose you could earn 10% on the $100,000. That would be $10,000 per year as the cost of purchasing the luxury car. But after tax (98%) the car would only cost $200 per year, a very cheap price.

The same example works for labor and salary income. Because of the high marginal tax rates, many professionals such as medical doctors closed their practices on Fridays and went to the golf course.

By changing the policy mix, that is by tightening monetary policy and reducing marginal tax rates (the tax rate on increases in income), the supply-side economic policy of the Reagan administration caused aggregate supply to increase. Thus output expanded relative to demand, and inflation declined.

This supply-side policy was instrumental as Reagan’s first step toward ending the cold war with the Soviet Union. As long as the US economy was afflicted with stagflation–the simultaneous rise in both inflation and unemployment, the Soviet government saw capitalism failing along with communism. But when Reagan corrected the economic problem, it made the Soviet government unsure that it could withstand an arms race.

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Paul Craig Roberts ~ America’s Descent Into Poverty

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Paul Craig Roberts | August 24 2012

Mike NortonThe United States has collapsed economically, socially, politically, legally, constitutionally, and environmentally. The country that exists today is not even a shell of the country into which I was born. In this article I will deal with America’s economic collapse. In subsequent articles, i will deal with other aspects of American collapse.

Economically, America has descended into poverty. As Peter Edelman says, “Low-wage work is pandemic.” Today in “freedom and democracy” America, “the world’s only superpower,” one fourth of the work force is employed in jobs that pay less than $22,000, the poverty line for a family of four. Some of these lowly-paid persons are young college graduates, burdened by education loans, who share housing with three or four others in the same desperate situation. Other of these persons are single parents only one medical problem or lost job away from homelessness.

Others might be Ph.D.s teaching at universities as adjunct professors for $10,000 per year or less. Education is still touted as the way out of poverty, but increasingly is a path into poverty or into enlistments into the military services.

Edelman, who studies these issues, reports that 20.5 million Americans have incomes less than $9,500 per year, which is half of the poverty definition for a family of three.

There are six million Americans whose only income is food stamps. That means that there are six million Americans who live on the streets or under bridges or in the homes of relatives or friends. Hard-hearted Republicans continue to rail at welfare, but Edelman says, “basically welfare is gone.”

In my opinion as an economist, the official poverty line is long out of date. The prospect of three people living on $19,000 per year is farfetched. Considering the prices of rent, electricity, water, bread and fast food, one person cannot live in the US on $6,333.33 per year. In Thailand, perhaps, until the dollar collapses, it might be done, but not in the US.

As Dan Ariely (Duke University) and Mike Norton (Harvard University) have shown empirically, 40% of the US population, the 40% less well off, own 0.3%, that is, three-tenths of one percent, of America’s personal wealth. Who owns the other 99.7%? The top 20% have 84% of the country’s wealth. Those Americans in the third and fourth quintiles–essentially America’s middle class–have only 15.7% of the nation’s wealth. Such an unequal distribution of income is unprecedented in the economically developed world.

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Paul Craig Roberts ~ The Dispossessed Majority

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Paul Craig Roberts | August 8 2012

DemocratThe bumper sticker on the beat-up pickup truck read: “Friends don’t let friends vote Democrat.”

The driver was obviously not affluent. Yet, despite all the news about mega-trillion dollar bankster bailouts, mega-million dollar bonuses for financial crooks, and unimaginable compensation packages for corporate CEOs who have moved middle class jobs out of America, something made the down-and-out pickup truck driver associate with the political party of the super-rich.

As I wondered at this strange alliance of the dirt poor with the mega-rich, I remembered that in 2004 Thomas Frank wondered about how the Republicans had managed to convince the poor to vote against their best interests. Frank’s answer, or part of his answer, is that the Republicans use “social issues,” such as gay marriage and Janet Jackson’s exposed nipple to work up indignation over the threat to moral values posed by liberal Democrats.

The working poor have been convinced by Republican propaganda that voting Democrat means giving the working poor’s tax dollars to the non-working poor, to providing medical care and schooling for illegal aliens, and being soft on terrorism.

To the pick-up truck driver, standing up for America means standing up for bankster bailouts and the military/security complex’s multi-trillion dollar wars.

The Karl Rove Dirty Tricks Team has honed the Republican propaganda. Republicans send each other via email an endless number of nonsense stories about Obama being a Muslim, about Obama being a Marxist, about Obama being a Manchurian Candidate turning America over to the New World Order or the United Nations, or to some other dastardly plotting organization. But never is Obama accused of turning the US over to Wall Street, the military/security complex, or Israel.

There is never any citation or source for the accusations in the emails. None are needed, because the words are what the Republicans want to hear. Ask them why Obama would be killing Muslims in seven countries if he was a Muslim, or why Wall Street and the military/security complex would put a Marxist in the White House, and they turn purple with rage. Just by asking the obvious questions instead of joining in the denunciations, a person confirms the propaganda that America is threatened by Obama dupes who won’t stand up for the country.

The non-affluent who rage about welfare, medicaid, Obamacare, and public schools can’t seem to put two and two together. The $750 billion TARP bankster bailout, a small part of the total and ongoing bailout, would have sufficed to cover any holes in these budgets for a long time. Instead, the money went to reward those who caused the financial crisis and threw millions of Americans out of their homes. As far as I know, the pickup truck driver is one of the dispossessed.

The same brainwashed Americans who rage against Obamacare and are lined up to vote for Romney are oblivious to the fact that Romney, while governor of the eastern liberal Democratic state of Massachusetts, had his version of Obamacare enacted at the state level.

The greatest irony about Obamacare is that it was written by the private insurance companies and diverts Medicaid and Medicare funds to their profits. It is socialized medicine alright, but it is socialism for the private insurance companies.

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G. Edward Griffin ~ The Collectivist Conspiracy [Video]

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whahappav | April 20 2011

In this exclusive 80 minute video interview, legendary conspiracy author G. Edward Griffin explains how his research, which spans no less than 5 decades, has revealed a banking elite obsessed with enforcing a world government under a collectivist model that will crush individualism and eventually institute martial law as a response to the inevitable backlash that will be generated as a result of a fundamental re-shaping of society.

Griffin discusses the similarities between the extreme left and the extreme right in the false political paradigm and how this highlights a recurring theme – collectivism. Collectivism is the opposite of individualism and believes that the interests of the individual must be sacrificed for the greater good of the greater number, explains Griffin, uniting the doctrines of communism and fascism. Both the Republican and Democrat parties in the United States are committed to advancing collectivism and this is why the same policies are followed no matter who is voted in to the White House.

“All collectivist systems eventually deteriorate into a police state because that’s the only way you can hold it together,” warns Griffin.

Carroll Quigley, Georgetown University Professor and mentor to former president Bill Clinton, explained in his books Tragedy and Hope and The Anglo-American Establishment, how the elite maintained a silent dictatorship while fooling people into thinking they had political freedom, by creating squabbles between the two parties in terms of slogans and leadership, while all the time controlling both from the top down and pursuing the same agenda. Griffin documents how the Tea Party, after its beginnings as a grass roots movement, was later hijacked by the Republicans through the likes of Sarah Palin and Glenn Beck.
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