First, one of the criticisms leveled against me especially in my critique of Ron Paul, is that I call for more regulation because deregulation was the primary cause of the financial meltdown. Let me address this issue completely. The Ron Paul supporters would have us believe two things. The crushing burden of regulation limits the "free market" (which I contend is a fiction since there is always advantage, sometimes structural, sometimes absolute) and prevents businesses from doing their best to hire people and expand. They also contend that the big businesses own the government and then write the laws and regulations that they then have to follow. This is really strange. They write the laws but then they are under a burden of the laws they write. Oh, you might say, this is the big boys keeping others out, thus if we get rid of regulation and or the departments that make them then we can have competition. This is fantasy. Removing the agencies of control and or the regulations just guarantees that the largest and wealthiest corporations will continue to dominate the market and actually expand and keep others out by virtue of their size and market position.
When I say that we need new regulation it presupposes the removal of corporate influence from government policy. Remove the corporations from the government. No revolving door in either direction. No corporate lobbyists. No money or any gifts of any kind from corporations to elected officials. If elected officials cannot gain favor and money from corporations they have no incentive to do what they want. Also if they have no ability to go into private business if they lose their elected office, which I would ban for elected officials that would move into private sector jobs that benefited by legislation that they were involved with while in office they have nowhere to go after they are booted from office so they have a direct incentive to listen to the PEOPLE they represent.
Here is a real plan for immediate growth and for private sector jobs as well. In World War II the US government had a program called GOCO, government owned corporate operated. My proposal is similar. The government actually starts new businesses, builds factories or supplies equipment for construction companies, or builds new power plants and staffs them with workers and start working to repair necessary infrastructure programs in this country. This could be expanded to any productive purpose, making products, building things, etc. The jobs will be living wage jobs with benefits. Now instead of having corporations run this government owned business like World War II GOCO facilities the government will actually run these businesses. However what will happen is this. If a corporation or business wants to take over the running of this business they can do so by meeting certain criteria. They have to keep the current level of employment or higher, they have to keep the living wage and benefits programs and this has to be contractual between the government and the business. If they meet economic criteria, having enough capital to continue the business and allow for growth the company will be given the business free. If they fail to fulfill the contractual obligations they forfeit the business and they pay the full amount of what the business would cost at market value. That would be paid back to the Treasury of the US, and the business will be offered to another company that wants to step in. This has many advantages since companies that want to get started can do so without the start up costs and assume the business that is fully running. Thus the businesses will become private sector jobs and expand the economy into production and construction. This would be a win win situation. More later...
Thursday, November 17, 2011
Monday, September 5, 2011
The Bankruptcy of Austrian Economics
Many people feel that Ron Paul is the answer for all of the problems faced by this nation, and I use the term "nation" loosely.
Since this is an economics blog I am going to tell you why his economic policies are horrendous. But it should be noted that his position on foreign policy and wars is great and he should be given credit for that.
First is the idea of free markets which Paul is a champion of, as is Austrian economics. The basic fact is that there is no such thing as a free market and deregulation will no make the market freer. There will still be countries, companies, and individuals that have advantages, some of which are absolute, which will ensure that these entities profit while others flounder.
In a labor market this is the ultimate horror as it is a race to the bottom in wages and benefits.
Austrians and Ayn Randians actually believe the garbage that they spew and call it good policy. Here is a sample of their lunacy in their own words.
The fact is that if the policies of Austrians were enacted as is envisioned by Ron Paul then we will be back to feudal times where workers are, at best, sharecroppers on the land of the local lord.
Additional problems with Ron Paul can be found in this well done piece which illustrates that Paul is at heart a far right supporter of the John Birch Society and a Christian Reconstructionist. There are far too many problems with Ron Paul that outweigh his anti-war stance, even though I laud him mightily for that position.
Since this is an economics blog I am going to tell you why his economic policies are horrendous. But it should be noted that his position on foreign policy and wars is great and he should be given credit for that.
First is the idea of free markets which Paul is a champion of, as is Austrian economics. The basic fact is that there is no such thing as a free market and deregulation will no make the market freer. There will still be countries, companies, and individuals that have advantages, some of which are absolute, which will ensure that these entities profit while others flounder.
In a labor market this is the ultimate horror as it is a race to the bottom in wages and benefits.
Austrians and Ayn Randians actually believe the garbage that they spew and call it good policy. Here is a sample of their lunacy in their own words.
The fact is that if the policies of Austrians were enacted as is envisioned by Ron Paul then we will be back to feudal times where workers are, at best, sharecroppers on the land of the local lord.
Additional problems with Ron Paul can be found in this well done piece which illustrates that Paul is at heart a far right supporter of the John Birch Society and a Christian Reconstructionist. There are far too many problems with Ron Paul that outweigh his anti-war stance, even though I laud him mightily for that position.
Tuesday, August 9, 2011
Wisconsin bodes ill for progressives
Once again we see that the minds of many are still stuck in their old mindset of beliefs that have no basis in reality. Progressive and populist ideas are long overdue in this country and it was to Wisconsin that many have put a lot of hope that some of these ideas could gain a foot hold. Now it seems the best result could be a 50/50 split in the recall elections. In light of the tremendous assault on unions, workers, working families, and just plain decent governance and a decent life for many it would seem that many are still buying the rhetoric of genocide and austerity.
It's a sad day indeed that this could occur but we should not be surprised either. We are living in very interesting times.
It's a sad day indeed that this could occur but we should not be surprised either. We are living in very interesting times.
Thursday, July 21, 2011
Unbelievable
Is there ANY sane or rational reason to conduct debt ceiling talks in secret? Well obviously the answer to that question is YES! And that is because you want to HIDE what it is you are doing. And that is exactly what we are seeing here. I have made a prediction that the legislation that raises the debt ceiling will be the beginning of the end for ALL social programs. I stand by this. Remember well that it was the wolf in sheep's clothing Obama that handed over Social Security and Medicare with no counter-offer from the lunatic fringe of the surreal Republi-WHORES. Not that the fake left wing or Demo-SHILLS are any better. Don't ever forget that all of these sides and people are exactly the same and serve the same masters.
Matt Taibbi illustrates a lot of the lunacy of what is going on in all of this. Also you might want to check out David Sirota and his outstanding piece entitled "The New Let Them Eat Cake!"
We will all pay and lose benefits and things we have paid for with blood and sweat while the elitist rich and corporations continue to rape and pillage in the fashion of the most vicious Viking.
This is the endgame in USA the corporate plantation.
Matt Taibbi illustrates a lot of the lunacy of what is going on in all of this. Also you might want to check out David Sirota and his outstanding piece entitled "The New Let Them Eat Cake!"
We will all pay and lose benefits and things we have paid for with blood and sweat while the elitist rich and corporations continue to rape and pillage in the fashion of the most vicious Viking.
This is the endgame in USA the corporate plantation.
Sunday, July 3, 2011
Koch Brothers war on seniors and the middle class
The Koch Brothers have spent millions of dollars to fund think tanks and supposedly "independent" foundations to present policy papers which purport to show that Social Security and Medicare are "unsustainable" and thus usher in austerity for the USA as is being done with Greece. This video is a parody of course but it might as well be a direct transmission from the Koch Brothers and the others on the radical fringes that want to further subject us to less regulation and more wealth accumulation to the super rich like the Koch Brothers. Don't be fooled by these foundations and institutes and the obvious propaganda they spew.
Friday, June 17, 2011
Hello seniors are you listening?
Come on seniors. You are and have been under attack for a long time now. I've warned you about it:
And here:
Now we have the AARP once again blatantly selling you out completely. They have now dropped their opposition to any cuts to Social Security as seen here.
They have sold you out on Medicare already not opposing and even endorsing Obama's cutting of 500 billion dollars from Medicare in the Healthcare Reform known as "Obamacare". Do you know why they supported cuts to Medicare?
Because they are an INSURANCE COMPANY and they don't give a damn about you, only your money. The cuts to Medicare mean that you will need more supplemental insurance to bridge the gap and they "just happen to" sell such things.
Now please answer this question. You actually have to PAY to belong to this organization right? Now please answer this question. WHY?
I am going to go out on a limb here and make a prediction that AARP will soon have, if they do not already have, some kind of supplemental income plan that they will want to SELL TO YOU because you will need it after they cut your Social Security benefits.
Sadly we cannot have much affect on politics in this country because corporations and insurance companies like AARP pay off the politicians. But you can have a great impact on THEIR influence by dropping out of the AARP and stop paying them money to sell you stuff and sell you out.
And here:
Now we have the AARP once again blatantly selling you out completely. They have now dropped their opposition to any cuts to Social Security as seen here.
They have sold you out on Medicare already not opposing and even endorsing Obama's cutting of 500 billion dollars from Medicare in the Healthcare Reform known as "Obamacare". Do you know why they supported cuts to Medicare?
Because they are an INSURANCE COMPANY and they don't give a damn about you, only your money. The cuts to Medicare mean that you will need more supplemental insurance to bridge the gap and they "just happen to" sell such things.
Now please answer this question. You actually have to PAY to belong to this organization right? Now please answer this question. WHY?
I am going to go out on a limb here and make a prediction that AARP will soon have, if they do not already have, some kind of supplemental income plan that they will want to SELL TO YOU because you will need it after they cut your Social Security benefits.
Sadly we cannot have much affect on politics in this country because corporations and insurance companies like AARP pay off the politicians. But you can have a great impact on THEIR influence by dropping out of the AARP and stop paying them money to sell you stuff and sell you out.
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