The Ideological Crisis of Western Capitalism

A decade ago, in the midst of an economic boom, the US faced a surplus so large that it threatened to eliminate the national debt. Unaffordable tax cuts and wars, a major recession, and soaring health-care costs – fueled in part by the commitment of George W. Bush’s administration to giving drug companies free rein in setting prices, even with government money at stake – quickly transformed a huge surplus into record peacetime deficits.

Joseph E. Stiglitz, Project Syndicate From Truthout

“Just a few years ago, a powerful ideology – the belief in free and unfettered markets – brought the world to the brink of ruin. Even in its hey-day, from the early 1980’s until 2007, American-style deregulated capitalism brought greater material well-being only to the very richest in the richest country of the world. Indeed, over the course of this ideology’s 30-year ascendance, most Americans saw their incomes decline or stagnate year after year.

Moreover, output growth in the United States was not economically sustainable. With so much of US national income going to so few, growth could continue only through consumption financed by a mounting pile of debt.

I was among those who hoped that, somehow, the financial crisis would teach Americans (and others) a lesson about the need for greater equality, stronger regulation, and a better balance between the market and government. Alas, that has not been the case. On the contrary, a resurgence of right-wing economics, driven, as always, by ideology and special interests, once again threatens the global economy – or at least the economies of Europe and America, where these ideas continue to flourish.

In the US, this right-wing resurgence, whose adherents evidently seek to repeal the basic laws of math and economics, is threatening to force a default on the national debt. If Congress mandates expenditures that exceed revenues, there will be a deficit, and that deficit has to be financed. Rather than carefully balancing the benefits of each government expenditure program with the costs of raising taxes to finance those benefits, the right seeks to use a sledgehammer – not allowing the national debt to increase forces expenditures to be limited to taxes.

This leaves open the question of which expenditures get priority – and if expenditures to pay interest on the national debt do not, a default is inevitable. Moreover, to cut back expenditures now, in the midst of an ongoing crisis brought on by free-market ideology, would inevitably simply prolong the downturn.

A decade ago, in the midst of an economic boom, the US faced a surplus so large that it threatened to eliminate the national debt. Unaffordable tax cuts and wars, a major recession, and soaring health-care costs – fueled in part by the commitment of George W. Bush’s administration to giving drug companies free rein in setting prices, even with government money at stake – quickly transformed a huge surplus into record peacetime deficits.

The remedies to the US deficit follow immediately from this diagnosis: put America back to work by stimulating the economy; end the mindless wars; rein in military and drug costs; and raise taxes, at least on the very rich. But the right will have none of this, and instead is pushing for even more tax cuts for corporations and the wealthy, together with expenditure cuts in investments and social protection that put the future of the US economy in peril and that shred what remains of the social contract. Meanwhile, the US financial sector has been lobbying hard to free itself of regulations, so that it can return to its previous, disastrously carefree, ways.

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But matters are little better in Europe. As Greece and others face crises, the medicine du jour is simply timeworn austerity packages and privatization, which will merely leave the countries that embrace them poorer and more vulnerable. This medicine failed in East Asia, Latin America, and elsewhere, and it will fail in Europe this time around, too. Indeed, it has already failed in Ireland, Latvia, and Greece.

There is an alternative: an economic-growth strategy supported by the European Union and the International Monetary Fund. Growth would restore confidence that Greece could repay its debts, causing interest rates to fall and leaving more fiscal room for further growth-enhancing investments. Growth itself increases tax revenues and reduces the need for social expenditures, such as unemployment benefits. And the confidence that this engenders leads to still further growth.

Regrettably, the financial markets and right-wing economists have gotten the problem exactly backwards: they believe that austerity produces confidence, and that confidence will produce growth. But austerity undermines growth, worsening the government’s fiscal position, or at least yielding less improvement than austerity’s advocates promise. On both counts, confidence is undermined, and a downward spiral is set in motion.

Do we really need another costly experiment with ideas that have failed repeatedly? We shouldn’t, but increasingly it appears that we will have to endure another one nonetheless. A failure of either Europe or the US to return to robust growth would be bad for the global economy. A failure in both would be disastrous – even if the major emerging-market countries have attained self-sustaining growth. Unfortunately, unless wiser heads prevail, that is the way the world is heading.”

Emphasis Mine

see:http://www.truth-out.org/ideological-crisis-western-capitalism/1310127895

Addressing our Revenue Crises

Democrats are right that this is a terrible moment for spending cuts

By   from the Washington Post

There is no good reason for negotiations on the budget and the debt ceiling to be deadlocked, because the solution is obvious: First, do no harm.

The Hippocratic injunction should be something befuddled economists and warring politicians can agree on. With the nation struggling to recover from a devastating recession, unemployment stuck at crisis levels, financial markets spooked by the possibility of European defaults and consumers disinclined to consume, it makes no earthly sense to suck money out of the economy.

Democrats are right that this is a terrible moment for spending cuts. Republicans are right that this is an awful moment for tax increases. The only reasonable thing to do is kick the can down the road — but in a purposeful, intelligent way.

As a practical matter, this means Republicans must swallow an increase in the debt ceiling, and Democrats must accept painful spending curbs that kick in when the economy is off its sickbed. It means conservatives have to be patient in bringing expenditures down and progressives have to be patient in returning tax rates — even for the wealthy — to what many of us consider appropriate levels.

All this is clear — even as much else about the economy and its prognosis becomes increasingly murky.

Indeed, it is reasonable to ask whether the “dismal science” of economics even works anymore as a reliable tool for analysis and prediction. While some economists remain staunch, unwavering disciples of John Maynard Keynes or Milton Friedman, others have begun couching their words. It’s almost as if the laws governing the universe of money have changed.

Two years ago at a seminar, I heard a distinguished economic forecaster confidently explain how the recovery would proceed. While some usually reliable indicators were anomalous and contradictory, he said, the one thing he knew from the historical record was that sharp, deep recessions are followed by steep, roaring recoveries. By the second quarter of 2010, he said, growth would be as high as 4 percent and unemployment would be tumbling. Happy days would be here again.

I won’t embarrass the man by naming him, since he wasn’t much farther off base than many of his peers. No economic orthodoxy has come through the past few years unscathed.

At least former Federal Reserve Chairman Alan Greenspan — once a firm, unquestioning believer in deregulation — had the honesty to admit that the 2008 financial meltdown exposed a “flaw” in his ideology and left him “in a state of shocked disbelief.” That’s where the whole economics profession should be.

But even if economists don’t know where the nation and the world are heading, there’s plenty of data to tell us where we are right now. Unemployment was at 9.1 percent in May, up from 9 percent in April. Housing starts were up slightly after having declined sharply the previous month. Retail sales were down a fraction after being up a fraction. Taking a longer view, the economy has clearly improved over the past year — but the improvement is slow, wobbly and fragile.

Given this state of affairs, it’s hard to imagine how taking money out of consumers’ hands — either through cuts in government spending or tax increases — could possibly make things better. It’s easy to see how such measures could make things worse.

Likewise, it’s hard to believe that running trillion-dollar deficits every year is sound policy. Economists who confidently tell us that it’s no problem that the national debt is approaching 100 percent of gross domestic product sound as if they’re whistling past the graveyard. I believe it would be a long, long time before the financial markets began to see the United States as a great big Greece, but at some point that day would come.

And how could Congress turn a long-range crisis into an immediate disaster? By stubbornly refusing to raise the debt ceiling, which would be the economic equivalent of a toddler’s temper tantrum.

It’s clear what needs to be done. President Obama and congressional leaders should agree on a series of firm deficit caps that would reduce the debt over time. This must be accompanied by a reasonable increase in the debt ceiling.

Then we will spend years engaged in a difficult but necessary fight over what kind of government we want and how much we’re willing to pay for it. At present, we’re operating a heavily armed, heavily indebted health insurance company — a giant, profligate Aetna or Prudential, with nuclear weapons. That’s not going to win the 21st century.

emphasis mine

see:http://www.washingtonpost.com/opinions/dont-make-the-economy-worse/2011/06/27/AGBoRDoH_story.html?wpisrc=nl_opinions

Three of the Biggest Lies ever told: thanks to Ayn Rand.

Oliver Wendell Holmes, Jr., “Taxes are what we pay for civilized society.”
to understand humans we must first understand human evolution

From: AlterNet / By Catherine Burke

3 Fatal Flaws in Ayn Rand’s Perverse ‘Moral Philosophy’

N.B.: This post demonstrates the principle that to understand humans we must first understand human evolution!
Ayn Rand lived in a world of fiction, and it shows in her social analysis.

“It is astonishing that a 54-year-old book, based upon three patently false premises, has suddenly been resurrected. The Chair of the House Budget Committee requires his staff to read Atlas Shrugged. On April 19, 2011 it ranked 17th on Amazon’s list of best sellers. It is said to be a favorite among Tea Party activists. It’s even been made into an independent movie, albeit omitting some of the steamier sex – one woman and three men?

The first error is the assertion that we humans, at least the best of us, are autonomous individuals who have no need for other human beings other than as useful tools. The second error is to perpetuate the libertarian idea that no social goal justifies “forcing” an individual to be a resource for others. In other words,  taxation is theft from “producers” to benefit “parasites.” The third error is that markets are “free” in the sense of operating best without any rules or regulation…

It is easy to counter the argument that humans are autonomous, isolated entities with no need for relationships with other humans. To the contrary, we are, and always have been, social creatures, relianton others for our lives, our development and our survival. When our species started to evolve in Africa, about 300,000 years ago, the world was filled with predators that had sharper teeth, stronger claws, could run faster and overall physically outmatch our tiny, hairy ancestors. The question is, how did our predecessors survive and procreate allowing me to write this essay and you to read it?

If we observe herds of, say, antelope today, we observe that predators go after the slowest and weakest member of the herd, who quickly becomes a meal. Antelopes survive because they procreate rapidly, and the loss of a single animal does not threaten the herd.

Humans, however, take considerably longer to bear a child, and that child requires considerable care over several years in order to survive. It is obvious that a pregnant female would, in the later stages of gestation, be the slowest member of the herd. Later her infant or toddler would also be slow and neither mother nor child would long survive without the support of a family or clan. Thus humans would not have survived as a species had they not been able to cooperate with each other and to form and maintain social groups. Humans hadto evolve as social animals.  

As social animals we needed (and still need) a way that allows us to function as productive members of a social group. Without such a method, the species will fail. This is true of all social species. For example, the social insects have specific complex chemicals that allow individual insects to function as productive members of a very coherent social group (beehive or ant colony). These chemicals are their operating methodology.

To function as a productive member of a human social group, we rely on six core values that bind human beings one to another. Based on our evolutionary development, all people, societies and organizations actually share the same set of core values. You can argue if these are the “real” core values, but these six appear to encompass what is necessary for the continuing existence of human social groups. Each of these can be thought of as being on a scale from positive to negative. Behavior at the positive end of the scale strengthens the social group; behavior at the negative end weakens, and eventually will destroy it.  Mostof a member’s behavior must be at the positive end of the scale in order for him or her to be accepted and relied upon by others. Without such positive reliable behavior social groups must fail. The following table shows the core values on which all societies are based according to research conducted with Ian Macdonald and Karl Stewart in the U.S., England, Australia, South Africa, Papua New Guinea, and Denmark.

The basic propositions are:

1. If a group of people are to maintain a productive relationship that lasts, then the members of that group must demonstrate behavior that exemplifies the positive end of the scales of the core values.

  1. If a member of that group demonstrates behavior that is judged by the other group members to be at the negative end of the scales of core values, the person will eventually be excluded (although attempts to change the behavior may be made prior to exclusion).
  1. If several people exhibit behaviors that are similar but judged by the rest of the group to be at the negative end of the scales of core values, then the group will break into factions or separate groups.

Values, per se, cannot be observed and therefore cannot be determined directly. We can and do observe what people say and how they behave. All of us interpret behavior and draw conclusions about the values that an individual’s behavior demonstrates. Often we have to wait for confirmation that our conclusions are correct, and sometimes we may be left in doubt. In some cases we may disagree with others as to how particular behavior should be interpreted. In general, however, within a coherent social group, agreement is gained in time, often very quickly.

In essence, values are the ground against which we assess our own worth and the worth of others. We argue that because humans evolved as social animals, all humans use these values as the basis for judging the worth of others as they observe and interpret their behavior.

Consider a situation that might happen in any group. Imagine a group of people of which you are a member and that you believe one of the other members has behaved in at least one of the following ways: told lies, stolen something, made fun of a less attractive member, has been indifferent to another’s serious misfortune, regularly failed to keep promises, demanded more than his or her share, or consistently avoided difficult situations. Is it possible for this person to maintain membership of the group if he or she fails to change their behavior?

We cannot maintain a productive relationship with someone we cannot trust, or someone who is dishonest, cowardly, disrespectful, indifferent to our feelings or unfair. It is likely that we and other members of the group will seek to point out the negative behavior, but if it persists, the person will be actively excluded from the group. This reflects the basic need of any group or society.

This basic requirement for a social group to continue is that members must demonstrate their ability to understand “the other.” That is, to be able to see the world from another’s point of view. This differentiates the adult world from the egocentric world of infancy and early childhood where the other’s needs are not seriously considered except to satisfy the self. It is also a classic condition of psychopathy where others are manipulated for personal gain. It is the antithesis of productive co-existence.

Rand states that the superior individual can live and work only for him or herself. Although on casual reading her characters are initially attractive, they actually are sociopaths who do not recognize their use of others to achieve their power and riches. They are indifferent to their impact upon others as they pursue their own selfish interests. Rand glorifies selfishness and sociopaths, yet her heroes and heroine succeed as much because of the work of others as of themselves. They had schooling, and even if it was private, the teachers had to be schooled, probably in a school provided by society. They rely on an educated workforce, on pilots, nurses, mechanics, plumbers, doctors, most of whom learned their skills in a public school.

From prehistoric times until the present, human beings have had to find ways to cooperate and work together in order to survive. Today, much of this cooperative behavior is supported by public services. Consider our need for education from kindergarten through universities, a stable monetary system, laws that protect property, courts to adjudicate disputes, rules to provide an even playing field in markets, hospitals, roads, airports, bridges, defense from predators whether criminal or military, development costs for technological innovations such as the Internet and modern medicines, libraries, parks and clean beaches.

None of the goods provided through government come free. They must be paid for, and the fairest way we have found to pay these costs is to tax everyone at a “reasonable” rate. I realize there are great differences regarding what is “reasonable,”and that our existing tax system has many injustices, but that does not mean we can simply say no more taxes, or suggest as Rand does that taxation is theft. Oliver Wendell Holmes, Jr., “Taxes are what we pay for civilized society.”

Rand puts forward the libertarian principle that no social purpose justifies forcing an individual to be a resource for another. In other words, taxation for the public good is wrong. There is no recognition that her heroes in Atlas Shrugged are rich and powerful and thus are able to dictate the terms on which others work for them; in other words they can “force” their workers to become a resource for them. Thus libertarianism has, at its core, a fundamental contradiction. Coercion by government is bad; but coercion by the rich and powerful “producers” is good.

The rich and powerful also rely on society for many of the goods of civilization, which are created through the cooperative efforts of all. Despite the arguments of Rand and the libertarians none of us can opt out of our need for society and its governing institutions.

Although most people agree that certain items such as airports, roads, bridges, armies, a legal system, must be socialized because no individual could buy these items due to cost and the requirement that their uses be shared, there is often disagreement as to what goods should be paid for by the public at large, socialized if you will, and what goods should be purchased by individuals in the market, e.g. privatized. Clearly many things are best handled in a market where individual buyers and sellers agree on goods and prices, for example, groceries, iPads, an automobile, the latest in fashion shoes or suits.

There is also a middle ground where sometimes we provide a good privately and sometimes publicly depending upon the area served, for example electric power. It is provided by shareholder owned, though heavily regulated utilities, as well as municipal utilities which, interestingly, are far less regulated.

We are still debating the best way to handle health care. We don’t even agree if everyone should have access to adequate health care. Most of our health care is provided through a market-like system that is largely controlled by insurance companies. If you are rich or well-insured, you get access to the best care the world can offer. If you lack money or insurance, you may get government supported Medicaid or emergency services at a public hospital. You are also more likely to die from a treatable illness.

In addition to the private system, we already provide two types of “socialized” medicine. There is single-payer health care with private hospitals and doctors through Medicare similar to the Canadian system where the term Medicare was coined. It provides care to the disabled and elderly who were refused coverage by the insurance industry – too costly, not profitable. There is also government-run health care as in Britain (for which the dreaded term “socialized medicine” was created) through our military and veterans facilities.

The services that can only be provided by society as a whole, must be paid for. These payments are called taxes. They are not “theft” — they are essential for our long-term survival.

Rand and other libertarians argue that markets are, and must be, “free.” Yet no market has ever existed without rules and referees, any more than you can have a football game without rules and referees. In the earliest markets in small, lightly populated villages, the rules were usually set by social custom. Someone who cheated would be ostracized, even exiled, if they did not pay back the person they had cheated and promise not to do it again.

As markets became larger and more regional, for example in the Middle Ages in Europe, guilds of tradesmen were organized to set rules regarding quality and prices. As the modern industrialized world emerged, a variety of abuses threatened its development. The muckrakers of the early 20th century exposed dreadful practices in food, meat-packing and patent medicines. Monopolies in railroads threatened the livelihoods of farmers and small towns. Other monopolies threatened competition and the market itself. Financial panics and depressions demonstrated the need to regulate banks and the stock market. Thus regulations at the state and federal level were instituted, not to destroy the markets but to make them viable and acceptable.

Granted, some of the rules were badly drawn; some gave special advantages to powerful interests; there was conflict among competing regulations and some of them were plain silly. None of this, however, negates the need for “rules of the road,” though ongoing reform is essential. Technical innovations, new knowledge, better ways of organizing production may require adjustments, but without regulation the thieves and thugs take over – witness the end of the Soviet Union in the early 1990s.

Even what appears to be the most unregulated market today –street corner sales of heroin – has its own rules and regulations. These are largely informal, but the rules are strictly enforced, largely with guns. Violators face severe punishment, often death.

Rand and her acolytes seem not to have looked at the human condition. Every business is a social system, and the values that bind humans together are necessary if the business is to thrive and prosper. Every community is a social system that requires humans to work together and cooperate.

Some would argue that, contrary to what I have proposed, it is clear among different social groups that we have quite different values. This confuses, for example, the underlying value of fairness, with the behaviors we perceive as fair. Different social groups will see the same behavior as either fair or unfair depending upon the stories (mythologies) embedded in that group. Mythologies are stories that may or may not be factually true, but they demonstrate a fundamental truth about human behavior – what is courageous and what is cowardly, what shows respect and what shows lack of respect, what is fair and what is unfair. People who share common mythologies are said to have a common culture.

In some groups telling lies to outsiders is not dishonest; it simply reflects the group’s lack of concern for others. Telling lies within the group is, however, punished. There are other groups where telling a lie indicates dishonesty, no matter to whom one lies. Thus both groups accept the core value of honesty, but the behavior that demonstrates honesty is different.

When it comes to taxes, some groups believe a progressive system where everyone pays the same up to a certain amount, then more for earnings above the base, and so on until the rate on earnings, say over a million dollars, is taxed at the highest rate. Others believe everyone should pay the same percentage of their income in taxes.

However we demonstrate the core values, human beings are not, and cannot be isolated and survive. We are moral beings with a strong sense of what is fair, honest, trustworthy, courageous, loving and respectful of human dignity. Our survival and continuation as a species depends upon others. As David Brooks has written, cooperation is built into our DNA. Rand is wrong, and those who follow her have created policies that have been destructive of our economy and our nation.

Catharine Burke is an associate professor at USC’s School of Public Policy and Planning.


Emphasis mine.

see: http://www.alternet.org/story/150971/3_fatal_flaws_in_ayn_rand%27s_perverse_%27moral_philosophy%27?page=entire

The Four Freedoms of the Tea Party.

In 1941, President Roosevelt introduced his Four Freedoms:"In the future days, which we seek to make secure,
 we look forward to a world founded upon four essential human freedoms.

The first is freedom of speech and expression — everywhere in the world.

The second is freedom of every person to worship God in his own way — everywhere in the world.

The third is freedom from want — which, translated into world terms, means economic understandings which will secure to every nation a healthy peacetime life for its inhabitants — everywhere in the world.

The fourth is freedom from fear — which, translated into world terms, means a world-wide reduction of armaments to such a point and in such a thorough fashion that no nation will be in a position to commit an act of physical aggression against any neighbor– anywhere in the world.”

see http://www.wwnorton.com/college/history/ralph/workbook/ralprs36b.htm

Today, the Tea Party advocates have their own Four Freedoms:

Freedom to watch others die a long, slow death because they cannot afford reasonable health care.

Freedom to watch many fail in life because they do not have access to a good education.

Freedom to watch millions fall from the middle class into poverty because their union barganing rights have been destroyed.

Freedom to watch seniors live in poverty because their savings have been lost by greedy speculators, and their safety nets destroyed.

What is the sound of one hand clapping?

The House voting to ‘repeal’ the health care insurance reform laws.  Since this shameless pandering to some of their base will have no legislative impact, we can keep the benefits we have already gained, including adding sons and daughters of up to age 26 to our family plans, free check-ups and diagnostic procedures, and help for those in the Medicare Part D coverage gap.

No GOP Mandate here!

Think the Nov 2 2010 elections were a mandate for the tea party?

Think Again!

Steven Thomma | McClatchy Newspapers

last updated: November 22, 2010 07:38:06 PM

WASHINGTON — A majority of Americans want the Congress to keep the new health care law or actually expand it, despite Republican claims that they have a mandate from the people to kill it, according to a new McClatchy-Marist poll.

The post-election survey showed that 51 percent of registered voters want to keep the law or change it to do more, while 44 percent want to change it to do less or repeal it altogether.

Driving support for the law: Voters by margins of 2-1 or greater want to keep some of its best-known benefits, such as barring insurers from denying coverage for pre-existing conditions. One thing they don’t like: the mandate that everyone must buy insurance.

At the same time, the survey showed that a majority of voters side with the Democrats on another hot-button issue, extending the Bush era tax cuts that are set to expire Dec. 31 only for those making less than $250,000.

The poll also showed the country split over ending the “don’t ask, don’t tell” policy prohibiting gays and lesbians from serving openly in the military, with 47 percent favoring its repeal and 48 percent opposing it.

The results signal a more complicated and challenging political landscape for Republicans in Congress than their sweeping midterm wins suggested. Party leaders call the election a mandate, and vow votes to repeal the health care law and to block an extension of middle-class tax cuts unless tax cuts for the wealthy also are extended.

“The political give and take is very different than public opinion,” said Lee M. Miringoff, the director of the Marist Institute for Public Opinion at Marist College in Poughkeepsie, N.Y., which conducted the poll. “On health care, there is a wide gap between public opinion and the political community.”

Far from the all-or-nothing positions staked out by politicians and pundits, Americans are more divided about the health care law.

On the side favoring it, 16 percent of registered voters want to let it stand as is.

Another 35 percent want to change it to do more. Among groups with pluralities who want to expand it: women, minorities, people younger than 45, Democrats, liberals, Northeasterners and those making less than $50,000 a year.

Lining up against the law, 11 percent want to amend it to rein it in.

Another 33 percent want to repeal it.

Among groups with pluralities favoring repeal: men, whites, those older than 45, those making more than $50,000 annually, conservatives, Republicans and tea party supporters.

Independents, who swung to the Republicans in the Nov. 2 elections, are evenly divided on how to handle the health care law, with 36 percent for repealing it and 12 percent for restraining it — a total of 48 percent negative — while 34 percent want to expand it and 14 percent want to leave it as is — also totaling 48 percent.

Several benefits of the new law are broadly popular.

Registered voters by a margin of 59 percent to 36 percent want to keep the requirement that insurance companies provide coverage to people with pre-existing conditions.

Among supporters, Republicans want to keep that part of the law rather than repeal it by a margin of 51-45. Independents want to keep it by a margin of 59-37. Even 46 percent of conservatives and 48 percent of tea party supporters want to keep it.

The section of the law requiring insurance companies to allow young adults to remain on their parents’ policies until age 26 also is popular, with voters saying keep it rather than repeal it by a margin of 68 percent to 29 percent.

Among those who like it, 75 percent of women, 80 percent of independent women, and 54 percent of Republican women.

Voters, by a margin of 57 percent to 32 percent, also want to keep the part of the law that closes the so-called “donut hole” in Medicare prescription drug coverage.

They turn a solid thumbs down on the law’s mandate that every American must buy insurance, with 65 percent calling that unconstitutional and 29 percent saying it should be kept.

A majority of every type of American called the mandate wrong, except for Democrats overall and Democratic men in particular. Among critics of the mandate: 50 percent of liberals, 53 percent of Democratic women, 68 percent of independents, and 83 percent of tea party supporters.

As Congress prepares to debate whether to extend the Bush-era tax cuts, the poll showed that 51 percent want to extend the tax cuts only for households making less than $250,000 a year, and 45 percent want to extend the tax cuts for all.

Those who support tax cuts only for those making less than $250,000 a year include minorities, Democrats, liberals and moderates, women, college graduates, Midwesterners and Northeasterners.

Those who want to extend all of the tax cuts, including for the wealthy, include Republicans, tea party supporters, conservatives, Southerners and Westerners,

Independents were closely divided, with 49 percent for extending only the “middle class” tax cuts, and 48 percent for extending all of them.

METHODLOGY

This survey of 1,020 adults was conducted Nov. 15-18. Adults 18 and older residing in the continental U.S. were interviewed by telephone. Telephone numbers were selected based upon a list of telephone exchanges from throughout the nation. The exchanges were selected to ensure that each region was represented in proportion to its population. To increase coverage, this land-line sample was supplemented by respondents reached through random dialing of cell phone numbers. The two samples were then combined. The margin of error is plus or minus 3 percentage points.

There are 810 registered voters. The results for this subset have a margin of error of plus or minus 3.5 percentage points. There are 371 Democrats and Democratic leaning independents and 337 Republicans and Republican leaning independents. The results for these subsets have margins of error of plus or minus 5 percentage points and plus or minus 5.5 percentage points, respectively. The error margin increases for cross-tabulations.

MORE FROM MCCLATCHY

The 2010 electorate: Old, white, rich and Republican

Jim DeMint still battling to keep Murkowski from Senate

Washington state’s Cantwell not looking ahead to 2012 — yet

Liberals offer alternative deficit-reduction plan

02 Nov 2010: a day that shall live in infamy

I predict that the new “Republican revival” will burn brightly for a brief moment and flame out like a sparkler.

From Creamer: (HuffPost)

“…

What caused this disaster? First let’s talk about what didn’t cause Democratic defeat.

The Republicans will argue that their electoral success represented a ringing rebuke of progressive policies and values — and a popular renunciation of the Obama administration. That reading of this election would be completely wrong.

The polling shows that Americans still very much support Social Security and Medicare and want nothing to do with the Ryan “roadmap” that would privatize Social Security, eliminate Medicare and replace it with vouchers.

Americans support Wall Street reform and the reject attempts to allow the big banks to return to the recklessness that cost eight million Americans their jobs.

Americans do not favor eliminating the new law that prevents insurance companies from discriminating against people with pre-existing conditions.

Americans favor more investment in education, good public schools, money spent on infrastructure and spending by the government that creates new jobs.

Why then did they buy the Republican sales pitch and once again hand them the gavel of the House?

Two reasons:

1). It’s the economy stupid. Middle class Americans are frightened and angry. For two decades the largest corporations and the big Wall Street banks have, in effect, waged war on the middle class. They have siphoned off every bit of economic growth for themselves. They have left middle class incomes stagnant, and made it more and more difficult for many families to believe in the American dream that their kids will be better off than they were.

The voters threw out George Bush and the Republicans two years ago because of the economy, and yesterday they took out their frustration on Democrats in Congress.

If the recession had not been so deep, if we had been able to pass a larger stimulus, if circumstances had allowed the administration to preside over the creation of three or four million jobs over the last two years, the right would not have found the fertile soil in which to grow its Tea Party.

In the end, the wide spread popular anger and frustration is about the economy.

2). The ferocious counter attack by Wall Street and the corporate special interests worked.

When the President and Democrats in Congress were forced to confront the worst economic downturn in 60 years — a downturn that was caused by the actions of Wall Street and the same crowd that has made war on the middle class — progressives fought for — and won historic legislation to rein in the power of the insurance companies, and the big Wall Street banks.

Those actions provoked a furious counter assault by corporate special interests — that included their use of unprecedented amounts of secret and foreign money — to take back control of the House and stop the president’s agenda. Those actions were not a political “mistake” as some will no doubt try to describe them. They were necessary to lay the foundation for long term, widely shared prosperity and short term economic recovery. But they involved major short term political cost. Many Democrats knew the potential political risk and decided do it anyway.

But it turned out that you can’t be out-communicated seven or eight to one for months on end and not expect negative attacks to take their toll.

Some might argue that Democrats could have done a better job taking the offense. In fact many of them did, but often they were drowned out by the massive fusillade of corporate advertising.

In this election, the Empire struck back. Or I suppose you could be that the right wingers on the Supreme Court struck back by reversing a hundred years of American law and deciding that corporations had the same rights a people to “free speech” and could spend any amount to manipulate the outcome of American elections.

Of course the irony is that the same forces that created the economic crisis, and profited from it, then turned around and played off the fear that the crisis created to convince voters to turnout Democrats who had stood up to them and reined them in.

So what do we do now?

  • First and foremost we cannot once again retreat into a defensive crouch, nor can we allow ourselves to be beguiled by those who say that Progressives should become more “moderate”. It isn’t progressive values that the voters rejected. It was economic stagnation. Many Americans are not frustrated because the government has done too much over the last two years; they are frustrated that the government did not do enough to create new jobs. There has never been a time when it has been more important for Progressives to stand up proudly for our values and our policies — including health care and Wall Street reform, Social Security.
  • And we must be unwavering in our faith that while fighting for what is truly good for everyday Americans may provoke a successful short term reaction by the corporate special interests — and involve short term political cost — in the end it is not only the right thing to do, it is good politics as well. Standing up for universal health care, and widely shared economic growth, and education, and scientific research, and human rights is about being on the right side of history. In the long run that is always good politics.
  • We must make certain that the Republicans are forced to confront the hypocrisy of their own positions — beginning immediately. In particular we should start by challenging them about how they intend square their frantic concern for deficits during the campaign with their proposal to raise the deficit in order to give millionaires a $700 billion tax cut. That issue will be front and center on the agenda of the upcoming lame duck session of Congress. And we must draw a line in the sand and say no to any attempt to cut Social Security or Medicare or to free the insurance companies from the restraints that were placed on their rates and practices by the new health care reform bill.
  • We must go to war to improve the American economy — and even if we cannot pass them all, we should propose real solutions and fight for them — including a major public works program that puts people to work and primes the national economic pump.Over the next two years it is critical that increasing numbers of Americans come to believe that their lives — and those of their children — are improving. And just as important they need to see Democrats fighting for their jobs.
  • Democrats in the Senate should move to change the filibuster rules that have been used continuously to ham string President Obama and his agenda. Over the last two years the Republicans have been all about preventing economic recovery and preventing the success of the Democratic Administration for their own political gain – even though the economic prospects of everyday Americans suffered as a result. That tactic worked. We should do everything we can to eliminate the weapons that made them successful at obstruction.
  • We must avoid the natural tendency to turn on our allies – especially the White House and Democratic Leadership. Many progressives would argue that if they had just been tougher… just listened to us … they would have done better in these elections.In some cases that is no doubt true. But recriminations and disarray among the progressive forces will only help to our enemies. Unless we want to return to the dark ages of complete Republican control, we need to make sure that President Obama is strong and successful. This election should make it crystal clear that if we do not hang together, we will all hang separately.
  • Finally, we need to remember that the political tide shifts rapidly. It’s not time to panic. It’s time to be resolute. It was only nineteen months ago that three million people came to the Capitol Mall to witness the changing of the political guard and the Republicans were in the political equivalent of Siberia. When the Republicans took back the House in 1994 it was partially in response to a backlash from the wealthy over Clinton’s increase in taxes for the rich that created a Federal budget surplus and set the stage for the most prosperous period in human history. Clinton, let us recall, was overwhelming reelected just two years after that first “Republican Revolution”.

It will not take long for the voters to see that some of them were sold snake oil by Republicans who feigned their concern of everyday Americans and all the while are entirely beholden to the corporate special interests that they detest.
I predict that the new “Republican revival” will burn brightly for a brief moment and flame out like a sparkler.

Robert Creamer is a long-time political organizer and strategist, and author of the recent book: “Stand Up Straight: How Progressives Can Win,” available on amazon.com.

Emphasis mine

see:http://www.huffingtonpost.com/robert-creamer/what-yesterdays-election_b_778101.html

Eight Nasty right wing lies about Obama

The public has been misled on a ton of issues like tax cuts, the deficit, the economy, and the cost of health care.

From Alternet:

“The public has been misled on a ton of issues like tax cuts, the deficit, the economy, and the cost of health care.

There are a number things the public “knows” as we head into the election that are just false. If people elect leaders based on false information, the things those leaders do in office will not be what the public expects or needs.”

Here are eight of the biggest myths:

“1) President Obama tripled the deficit.

Reality: Bush’s last budgethad a $1.416 trillion deficit. Obama’s first budgetreduced that to $1.29 trillion.

2) President Obama raised taxes, which hurt the economy.

Reality: Obama cut taxes. 40% of the “stimulus” was wasted on tax cuts which only create debt, which is why it was so much less effective than it could have been.

3) President Obama bailed out the banks.

Reality: While many people conflate the “stimulus” with the bank bailouts, the bank bailouts were requested by President Bush and his Treasury Secretary, former Goldman Sachs CEO Henry Paulson. (Paulson also wanted the bailoutsto be “non-reviewable by any court or any agency.”) The bailouts passed and began before the 2008 election of President Obama.

4) The stimulus didn’t work.

Reality: The stimulus worked, but was not enough. In fact, according to the Congressional Budget Office, the stimulus raised employment by between 1.4 million and 3.3 million jobs.

5) Businesses will hire if they get tax cuts.

Reality: A business hires the right number of employees to meet demand. Having extra cash does not cause a business to hire, but a business that has a demand for what it does will find the money to hire. Businesses want customers, not tax cuts.

6) Health care reform costs $1 trillion.

Reality: The health care reform reduces government deficits by $138 billion.

7) Social Security is a Ponzi scheme, is “going broke,” people live longer, fewer workers per retiree, etc.

Reality: Social Security has run a surplus since it began, has a trust fund in the trillions, is completely sound for at least 25 more years and cannot legally borrow so cannot contribute to the deficit (compare that to the military budget!) Life expectancy is only longer because fewer babies die; people who reach 65 live about the same number of years as they used to.

8) Government spending takes money out of the economy.

Reality: Government is We, the People and the money it spends is on We, the People. Many people do not know that it is government that builds the roads, airports, ports, courts, schools and other things that are the soil in which business thrives. Many people think that all government spending is on “welfare” and “foreign aid” when that is only a small part of the government’s budget.

This stuff really matters.

If the public VOTESin a new Congress because a majority of voters think this one tripled the deficit, and as a result the new people follow the policies that actuallytripled the deficit, the country could go broke.

If the public VOTES in a new Congress that rejects the idea of helping to create demand in the economy because they think it didn’t work, then the new Congress could do things that cause a DEPRESSION.

If the public VOTES in a new Congress because they think the health care reform will increase the deficit when it is actually projected to reduce the deficit, then the new Congress could repeal health care reform and thereby make the deficit worse. And on it goes.”

Dave Johnson blogs at Seeing the Forest and is a Fellow at theCommonweal Institute. He has over 25 years of technology industry experience.

EMPHASIS mine.

see: http://www.alternet.org/news/148614/8_nasty_conservative_lies_about_the_democrats_and_obama_that_must_be_debunked_before_the_election/

The Republican Swindle About ‘Obamacare and Stimulus’

The Republican strategy for this midterm election is simple: Treat voters like easily manipulated hoopleheads

Bob Cesca

If you happen to be a swing voter who’s considering the Republican slate next month, you’re being tricked. That’s not to say you’re an idiot, but the Republicans are doing an excellent job masking over what they really stand for, and millions of Americans seem to be falling for it.

The Republican strategy for this midterm election is simple: Treat voters like easily manipulated hoopleheads. The GOP and its various apparatchiks are spending untold millions of dollars, much of it from anonymous donors and, perhaps, even some illegal foreign donors, in order to play out this nationwide swindle. They’re investing heavily on the wager that Americans are so kerfuffled by the slow-growth (but growth nevertheless) economy that they’re willing to buy any line of nonsense as an alternative solution.

Regarding that nonsense, just about every GOP solution and every GOP idea reveals either a hilariously obvious contradiction or an utterly transparent hypocrisy. Say nothing of unchecked awfulness like Southern Strategy race-baiting or bald-faced lies. But it doesn’t seem to matter much because they’ve buried most of it under heaping piles of inchoate outrage and fear. Just like always. It’s not unlike the 2000s all over again. They’re engaging in the same bumper sticker sloganeering and myopic agitprop, but with updated content for 2010.

If you’ve seen any of the Republican TV spots this cycle, you’re probably familiar with the focus-group-tested duet of fear: “Obamacare and Stimulus.” For example, that infamous John Raese commercial featuring two not-West-Virginian West Virginians in full “hicky” regalia discussing why they’re voting Republican. Among the reasons: “Obamacare and Stimulus.” No specific reasons why those items are evil, they’re just two scary things the hicky guys are pissed about.

And why aren’t there any specific gripes cited along with those two items? Because the actual gripes are ridiculous.

Let’s start with “Obamacare,” then hit “Stimulus” presently.

The Republicans are trying to tell us that the health-care-reform bill is a hugely expensive trespass against freedom and liberty. This obviously refers to the price tag and the individual mandate. What they don’t mention is that “Obamacare” will actually achieve several very significant goals.

1) The health-care-reform bill will help working and middle class Americans to afford quality health insurance via hundreds of billions of dollars in subsidies. For example, families of four earning $54,000 will see their insurance premiums reduced by around $10,000 per year. That’s a lot. Who in their right mind would turn down a government check for $10,000? Every year. That’s a full semester of state university tuition, among other things.

2) Contrary to the “Obama-is-spending-too-much” meme, the bill does not increase the deficit. According to the nonpartisan CBO, the bill cuts the deficit by $130 billion over ten years. Put another way, all that scaremongering about the cost of the bill is just that: scaremongering. The bill pays for itself and then some.

3) There are no enforcement mechanisms for the super-duper terrifying individual mandate. If you choose not to buy insurance when the mandate takes effect in 2014, and are consequently fined $695, there is no means of actually enforcing the payment of that penalty. No liens, levies, no jail, no Obamacare Goons swooping into your house like America-hating Kenyan ninjas. Nothing will happen to you. Nothing. So, you know, chill out about the mandate.

The question about “Obamacare,” then, is very simply: Why are the Republicans against reducing the deficit by $130 billion, and why are they against more accessible and affordable healthcare? I have no idea, other than they’re taking the childish opposite position of what was passed (despite the deficit reduction and subsidies for the middle class, etc.). Oh, and they call it “Obamacare,” which is spooky and one letter away from being “Osamacare.” Scary, but entirely without substance.

Oh, and speaking of the deficit, the Republicans are lying to voters about the Democratic handling of the deficit as well. It turns out the Democrats and the Obama administration cut the deficit this year. Cut it. The 2009 Bush-approved budget was $1.416 trillion and the 2010 Obama-approved budget was $122 billion less. Meanwhile, the Republicans are admitting to increasing the deficit by $4 trillion by making the Bush tax cuts permanent. And they won’t say what they plan to cut from the budget in order to pay for it. Once again, we’re back in the early Bush years with so-called fiscal conservatives engaged in big, irresponsible spending without any way to make up the shortfall.

Actually, the only spending cuts that appear to be on the table are the Social Security checks, the Medicare reimbursements and the veteran’s benefits that will stop when the Republicans gleefully shut down the government. (Any senior citizen who votes Republican is voting for their Social Security and Medicare checks to stop — indefinitely. Just thought I’d mention that.)

Circling back, it’s important to repeat: President Obama and the congressional Democrats cut the deficit. Fact: The first Obama budget was billions less than the final Bush budget. And, in the process, President Obama’s policies have pushed the DJIA from 6,000 to 11,000; his policies have turned Bush-era job losses into job creation; and pulled the nation from the brink of another Great Depression.

Again, why are the Republicans against all of this?

By the same token, why are they against the stimulus? They really won’t say other than to screech about how expensive it was. But, before we go further, read the paragraph about the deficit again. The Democrats cut the deficit. And then factor into the mix that $288 billion out of the $800 billion cost of the recovery act was composed entirely of tax cuts. Tax cuts! As a matter of history and taken as a lump sum, this was the largest American middle class tax cut ever. So it’s not a stretch to suggest that the Republicans are suddenly against the largest middle-class tax cut in American history.

Despite the attempt to turn a derivation of the positive word “stimulate” into a negative, there’s very little about the stimulus that actually sucked, other than the fact that it wasn’t big enough. Beyond that, Republican voters need to ask themselves if the tax cuts were bad — or maybe was it the new roads and infrastructure that helped to create jobs, or was it the money that was spent to keep the states out of bankruptcy and police, teachers and firemen from losing their jobs? What’s awful about any of that?

Then they need to ask themselves why Republican politicians like Rep. Pete Sessions (R-TX), along with dozens of other Republicans, actually petitioned and received from the Obama administration millions in stimulus dollars? Some of them evenposing with giant novelty stimulus checks and literally campaigning on the wads of money they received from the stimulus. Pete Sessions, in fact, wrote to Secretary Ray LaHood and emphasized that the funds would literally “stimulate the economy” in his district. Naturally, Sessions turned around and campaigned against the stimulus. He thinks you won’t notice.

Elsewhere, Newt Gingrich and others are trying to deceive voters by insisting that it’s “liberal math” for an investment to earn a return — for, say, a one dollar investment to grow into $1.74. Since when do Republicans believe that wise investments are “liberal math?” Specifically, Newt was talking about government spending on food stamps as a means of stimulating the economy. Based on simple math, one dollar in government money spent on food stamps creates $1.74 in economic stimulus, according to Moody’s. Why? Because food stamps help Americans to buy things. Whereas the Bush tax cuts, for example, are a poor investment, only earning 32 cents for every dollar spent. Why? Because rich people tend to save their tax cuts rather than pumping that money into the marketplace.

Back to our refrain: Why are the Republicans against smart investing?

Yeah, Obamacare and the Stimulus. Destroying America from within, right?

It’s worth noting here that this same Republican deception runs across other issues as well. Republicans are suggesting they’ll protect individual liberty, while shrinking government small enough to fit into your bedroom or your uterus. Or they’re running on the Constitution, while also having their hired thugs handcuff and detain a reporter in a flagrant violation of the First Amendment. Hell, some Republicans are running for U.S. Senate while opposing the 17th Amendment that established popular elections of senators. Wrap your head around that one.

Sure, there are still many things the Democrats have yet to unravel after 30 years of Reaganomics. But, despite their obvious faults, they’re moving in that direction. And they’re being as honest as politicians can be with their intentions. The Republicans, meanwhile, are running on some sort of Mobius Loop of backwards logic and flimsy, if not totally destructive, policy positions.

With less than two weeks to go, the sooner voters wise up to this Republican flimflam, the better off we’ll all be.

Listen to the Bob & Elvis Show, with Bob Cesca and Elvis Dingeldein, on iTunes.
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see: http://www.huffingtonpost.com/bob-cesca/the-republican-swindle-ab_b_770692.html?view=print

Guidelines for Dem Success in Nov 2010

Robert Creamer HuffPost:

“The first rule for Democratic success this November is the immutable iron law of politics: if you’re on the defense you’re losing. Who ever is on the offensive almost always wins elections.

That’s why Democratic victory requires that this election cannot simply be a referendum on the speed with which Democrats have been cleaning up the economic mess created by the Republicans and their allies on Wall Street. It must be a choice between Democrats who are charting a new path forward out of the economic ditch and the failed economic policies of the Republicans that drove us into that ditch in the first place. Democrats must make it clear that if the Republicans once again get their hands on the keys to the economy, those same, reckless failed policies will result in yet another economic catastrophe.

It’s fine, for instance, for Democratic office holders to explain the details of the Health Care bill. After all, the more that people know about it, the more they like it. But that explanation should not constitute the be all and end all of the Democratic health care message. We have to challenge the Republicans — who have been bought and paid for by the insurance companies — to justify their vote against preventing those companies from discriminating against people with pre-existing conditions. We have to challenge them to explain their proposals to eliminate Medicare and replace it with vouchers for private insurance.

The same goes in every arena. And it is doubly important because voters vote for people — not policy positions. Voters want leaders who are strong and self confident — not leaders who spend their days in a defensive crouch. They want leaders who stand up straight and defend their deeply held values — not leaders who bob and weave.

The thing we have to remember most is that Democratic positions on the issues – and the values that underlie them — are very popular. Voters generally respond very favorable to candidates who stand up for those values — for average Americans not the wealthy and special interests….”

Great Advice – lets use it.

Emphasis Mine.

see: http://www.huffingtonpost.com/robert-creamer/what-is-the-first-rule-fo_b_656841.html