The fog that blinded the electorate

Election rally in PA
Election rally in PA

Source: Peoples World

Author: Rick Nagin

Emphasis Mine

There were local and geographical peculiarities, but when an election was as uniformly one-sided as this one was, deeper explanations are required. In the most general sense it can be said that the electorate does not yet recognize or understand that the enemy they face is right wing extremism; that this is the fundamental source of the insecurity they feel as their living standards and democratic rights are besieged. It is the Republicans, not the Democrats, who have blocked programs to create jobs, raise wages, strengthen unions, who have cut taxes on the rich and shifted the burden to working people, who have slashed funds for education, health care and local government services, who have launched an unprecedented assault on the right to vote, on the rights of women, on equality for gay people, on immigration reform and on defending humanity from a climate catastrophe.

All this begs the question as to why the people were not able perceive the mortal danger from the right. The answer to this, I believe, was the ability of the right to unleash unprecedented resources to roll out a dense fog, as thick as pea soup that covered the South, blanketed the Midwest and reached even into the far recesses of New England, a fog that terrified, blinded and paralyzed the Democrats and had them running for cover. It was the fog of racism.

The demonization of President Barack Obama and, by extension, the Democrats who “voted with him,” has been building for years in the nether world of right wing hate talk radio and Fox News and was unleashed full force in this election. Since it is forbidden to mention racism in polite company, the corporate media referred to the GOP strategy as the “nationalization” of the election. Tom Cotton, GOP candidate for senator in Arkansas, avoided state issues but used Obama’s name 79 times in his televised debate with Democratic incumbent Mark Pryor.

The most notorious use of this tactic, as well as the classic capitulation of the liberal Democrats was in Kentucky where Allison Lundergan Grimes responded to Mitch McConnell’s relentless race baiting by first saying she was a “Clinton” (i.e. not an Obama) Democrat,” then by protesting in a debate that “Obama is not on the ballot” and finally by refusing to say whether she had voted for Obama in the presidential election. How different it would have been if, from the beginning she had confronted the issue head on, denounced McConnell’s shameful racist campaign as an insult to the democratic values of the voters and had driven home that it was only because of the Obama health care reform that millions of Kentuckians now had for the first time their very popular health coverage program. It would have been McConnell, not Grimes, who would have been on the defensive and a powerful anti-fogging agent would have been released

But Grimes and Pryor believed the racist fog was unbeatable and, along with Kay Hagan in North Carolina, had prevailed on the President to delay his planned immigration initiatives until after the election, and, of course, to stay as far away from their states as possible. As reward for their cowardice, they all went down to defeat. There was one example in this election demonstrating that the voters are actually better than Grimes, Hagen and Pryor believed. That was in Pennsylvania where Gov. Tom Corbett was unseated after he and the Republicans admitted their election restrictions were an attempt to suppress minority votes and their massive cuts to public education were also directed at urban African Americans. These actions were blasted by victorious gubernatorial Democratic candidate Tom Wolf, and voter participation by minorities and white allies actually increased.

The lesson of this election is clear. Racism is at the core of right wing ideology. The attacks on “government,” Social Security, Medicare, public education, the minimum wage, public employee unions are directed first and foremost at people of color, as the right seeks to convince the white majority that democratic rights and institutions exist primarily to serve minority populations at the expense of the majority. They hope this will carry them to victory in the 2016 presidential election.

In their arrogant statements after the election McConnell and House Speaker John Boehner made clear their war on President Obama would continue unabated. They think they have a good thing going and plan to keep milking it for all it is worth. It is the responsibility of all progressives, of labor and all its grassroots allies to expose and reject these divisive tactics and build a united democratic movement to defeat right-wing extremism.

See: http://peoplesworld.org/the-fog-that-blinded-the-electorate/

Give Karl Marx a Chance to Save the World Economy: George Magnus

s he wrote in “Das Kapital,” companies’ pursuit of profits and productivity would naturally lead them to need fewer and fewer workers, creating an “industrial reserve army” of the poor and unemployed: “Accumulation of wealth at one pole is, therefore, at the same time accumulation of misery.”

Karl Marx and the World Economy

By George Magnus

Policy makers struggling to understand the barrage of financial panics, protests and other ills afflicting the world would do well to study the works of a long-dead economist: Karl Marx. The sooner they recognize we’re facing a once-in-a-lifetime crisis of capitalism, the better equipped they will be to manage a way out of it.

The spirit of Marx, who is buried in a cemetery close to where I live in north London, has risen from the grave amid the financial crisis and subsequent economic slump. The wily philosopher’s analysis of capitalism had a lot of flaws, but today’s global economy bears some uncanny resemblances to the conditions he foresaw.

Consider, for example, Marx’s prediction of how the inherent conflict between capital and labor would manifest itself. As he wrote in “Das Kapital,” companies’ pursuit of profits and productivity would naturally lead them to need fewer and fewer workers, creating an “industrial reserve army” of the poor and unemployed: “Accumulation of wealth at one pole is, therefore, at the same time accumulation of misery.”

The process he describes is visible throughout the developed world, particularly in the U.S. Companies’ efforts to cut costs and avoid hiring have boosted U.S. corporate profits as a share of total economic output to the highest level in more than six decades, while the unemployment rate stands at 9.1 percent and real wages are stagnant.

U.S. income inequality, meanwhile, is by some measures close to its highest level since the 1920s. Before 2008, the income disparity was obscured by factors such as easy credit, which allowed poor households to enjoy a more affluent lifestyle. Now the problem is coming home to roost.

Over-Production Paradox

Marx also pointed out the paradox of over-production and under-consumption: The more people are relegated to poverty, the less they will be able to consume all the goods and services companies produce. When one company cuts costs to boost earnings, it’s smart, but when they all do, they undermine the income formation and effective demand on which they rely for revenues and profits.

This problem, too, is evident in today’s developed world. We have a substantial capacity to produce, but in the middle- and lower-income cohorts, we find widespread financial insecurity and low consumption rates. The result is visible in the U.S., where new housing construction and automobile sales remain about 75% and 30% below their 2006 peaks, respectively.

As Marx put it in Kapital: “The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses.”

Addressing the Crisis

So how do we address this crisis? To put Marx’s spirit back in the box, policy makers have to place jobs at the top of the economic agenda, and consider other unorthodox measures. The crisis isn’t temporary, and it certainly won’t be cured by the ideological passion for government austerity.

Here are five major planks of a strategy whose time, sadly, has not yet come.

First, we have to sustain aggregate demand and income growth, or else we could fall into a debt trap along with serious social consequences. Governments that don’t face an imminent debt crisis — including the U.S., Germany and the U.K. — must make employment creation the litmus test of policy. In the U.S., the employment-to-population ratio is now as low as in the 1980s. Measures of underemployment almost everywhere are at record highs. Cutting employer payroll taxes and creating fiscal incentives to encourage companies to hire people and invest would do for a start.

Lighten the Burden

Second, to lighten the household debt burden, new steps should allow eligible households to restructure mortgage debt, or swap some debt forgiveness for future payments to lenders out of any home price appreciation.

Third, to improve the functionality of the credit system, well-capitalized and well-structured banks should be allowed some temporary capital adequacy relief to try to get new credit flowing to small companies, especially. Governments and central banks could engage in direct spending on or indirect financing of national investment or infrastructure programs.

Fourth, to ease the sovereign debt burden in the euro zone, European creditors have to extend the lower interest rates and longer payment terms recently proposed for Greece. If jointly guaranteed euro bonds are a bridge too far, Germany has to champion an urgent recapitalization of banks to help absorb inevitable losses through a vastly enlarged European Financial Stability Facility — a sine qua non to solve the bond market crisis at least.

Build Defenses

Fifth, to build defenses against the risk of falling into deflation and stagnation, central banks should look beyond bond- buying programs, and instead target a growth rate of nominal economic output. This would allow a temporary period of moderately higher inflation that could push inflation-adjusted interest rates well below zero and facilitate a lowering of debt burdens.

We can’t know how these proposals might work out, or what their unintended consequences might be. But the policy status quo isn’t acceptable, either. It could turn the U.S. into a more unstable version of Japan, and fracture the euro zone with unknowable political consequences. By 2013, the crisis of Western capitalism could easily spill over to China, but that’s another subject.”

(George Magnus is senior economic adviser at UBS and author of “Uprising: Will Emerging Markets Shape or Shake the World Economy?” The opinions expressed are his own.)

To contact the Bloomberg View editorial board: view@bloomberg.net.

emphasis mine

see:http://www.bloomberg.com/news/2011-08-29/give-marx-a-chance-to-save-the-world-economy-commentary-by-george-magnus.html