Tag Archives: Keynesian

SYNDICATED COLUMN: What’s the Matter with Obama?

It’s the Not Caring About the Economy, Stupid

As a pundit it’s my job to explain why politicians do the things they do. Every now and then, however, a pol behaves so irrationally that I have to throw up my arms and ask:

What the hell is this guy thinking?

That’s what Obama has me doing. For over two years. Why isn’t he worried about unemployment?

Thomas Frank wondered in “What’s the Matter with Kansas?” why Americans don’t vote their (liberal) self-interest. What I can’t figure out is why President Obama isn’t following his self-interest.

Obama says he wants a second term. I believe him. Every president wants one.

Americans vote their pocketbooks. Not exclusively—they care about a candidate’s values—but no president has ever been reelected with an unemployment rate over 7.2 percent. Right now it’s 9.1 percent. Unless there’s an unexpected reversal, it will still be way high by Election Day 2012.

Economists surveyed by USA Today predict that the jobless rate will be pretty much the same, 8.8 percent, at this time next year. Goldman Sachs is even more pessimistic. They think it will be 9.25 percent by the end of 2012—with a “meaningful downside risk” that it will be even worse.

Polls indicate that economic insecurity, specifically high unemployment, has been the biggest issue on voters’ minds since Obama took over in 2009.

77 percent of Americans tell Gallup the economy is getting worse. That’s up from 62 percent a month ago.

If Obama wants to get reelected he has to do something about jobs. Something BIG. Failing that—and that’s an epic fail—he has to at least be perceived as trying to do something about jobs. But he hasn’t done squat so far. And his job approval rating, now at an all-time low of 39 percent, reflects that.

I don’t like admitting this, but I’m mystified. Why isn’t Obama even trying to look like he cares about the one issue that could make or break his reelection chances?

What’s up? Are he and his advisors morons, or just out of touch? Do they have some secret jobs-related October Surprise that will magically reemploy the 22 percent of Americans who are out of work during the last few weeks of the election? Are they the Chicago Black Sox of politics, determined to throw the race to the Republicans? Psychologist Drew Westen can’t figure it out either, wondering aloud if Obama is sick in the head.

Some ask: Is Obama a Republican?

“Government doesn’t create jobs,” tweeted GOP candidate Herman Cain recently. “Businesses create jobs. Government needs to get out of the way.” Obama and his fellow fake Democrats never challenge this right-wing framing.

Maybe they believe it. “The White House doesn’t create jobs,” Obama press secretary Jay Carney said August 5th.

But the meme is wrong. In the real world where flesh-and-blood American workers have been living since 2000, businesses haven’t created any jobs. Instead, they’ve eliminated millions of them. And shipped millions more overseas.

Those job-killing trends—eliminating workers, increased automation and globalization—won’t change soon. “Workers are getting more expensive while equipment is getting cheaper, and the combination is encouraging companies to spend on machines rather than people,” Catherine Rampell recently reported for The New York Times.

There’s also a death-spiral effect. Elena Semuels of The Los Angeles Times sums it up: “Economists say the nation is stuck in a Catch-22 scenario: The economy won’t improve until businesses hire, but many won’t hire without consumer demand, which is weak because of the current state of the job market and concerns about the future.”

“Everyone says, ‘How can we have a recovery without jobs?’ [But] until I start seeing my competitors add jobs, I’m not going to do it,” Loren Carlson of the CEO Roundtable tells MSNBC.

Recovery won’t come from business. The scope of the post-2008 meltdown is too vast.

On the other hand, government can and does create jobs. Indirectly, it creates the veneer of law and order that permits commerce. Government can also employ people directly.

FDR orchestrated the direct hiring of 9 million Americans as government employees for the WPA and other programs. The federal government even hired writers and artists. Adjusted for population growth, that’s the same as 22 million people today. Obama could have done something like that in early 2009.

Too late now, of course. Obama’s inaction on the economy prompted a Republican sweep in the 2010 midterms. They won’t go along.

Keynes 101: the time for austerity is during a boom, when you can afford to save up for a rainy day. Governments are supposed to spend their way out of a recession or depression. The GOP-conceived debt ceiling deal is 200-proof insanity.

“An anti-Keynesian, budget-balancing immediacy imparts a constrictive noose around whatever demand remains alive and kicking,” wrote Bill Gross of the bond-trading firm Pimco in The Washington Post. “Washington hassles over debt ceilings instead of job creation in the mistaken belief that a balanced budget will produce a balanced economy. It will not.”

Rather than criticize this austerity lunacy, Obama is still going along. “Mr. Obama’s senior adviser, David Plouffe, and his chief of staff, William M. Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact,” reports the New York Times.

“We’re at a loss to figure out a way to articulate the argument in a way that doesn’t get us pegged as tax-and-spenders,” admits a Democratic Congressional advisor. For God’s sake, grow a pair! Make your case to the public.

Anything that doesn’t have “much economic impact” isn’t going to have much electoral impact either. And neither are token gestures like a three-day bus tour, revamping the patent process, or another overhyped speech. (Scheduled for September. Because, why rush?)

As you read this Obama is off to Martha’s Vineyard, hanging out with millionaires.

Really—what’s going on? Can Obama really be that stupid? Can anyone?

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL

SYNDICATED COLUMN: Boycott the 2012 Election

Hey Liberals! Time to Stop Getting Rolled

We might as well have defaulted.

Regardless of where you stand politically, the deal to raise the federal debt limit came too late for the U.S. to achieve its main objective, avoiding the downgrading of debt issued by the U.S. Treasury that would have followed a default.

“The political and financial world surely thinks less of us now, and one demonstration of that will likely be a downgrading of the credit rating of the U.S., probably imposed in the next few months,” writes John Keefe of CBS’s Moneywatch. “The net result will be higher interest rates on U.S. government debt, which is likely to bleed through ultimately to higher costs for all sorts of other interest rates.”

The buzz on Wall Street says that Standard & Poor’s will soon downgrade T-Notes from a sterling “AAA” either to “AA+” or “AA”, the same as Slovakia. That’s exactly what would have happened had there been a default.

It is true: Our leaders are idiots.

“I have a home in Nevada that I haven’t seen in months,” said Majority Leader Harry Reid on the floor of the Senate. “My pomegranate trees are, I’m told, blossoming.” Too bad. He missed his pretty flowers for nothing.

Liberals got rolled.

Just like on healthcare.

Just like on everything else.

Everything about the way this deal went down, from the initial posturing to a compromise that will make the Great Depression of 2008-? even worse, along with Congress’ total lack of concern for the hardships being faced by the 20 percent-plus of Americans who are unemployed, has people disgusted.

“The big loser after this exercise is Washington,” Republican strategist Scott Reed tells The New York Times. The 2012 election “has the potential to be an anti-incumbent feeling in both parties.” Gee, ya think?

If any good comes out of the debt limit fiasco, it’s that this embarrassing showdown could serve as a long overdue wake-up call to liberals who still have faith in the Democratic Party. Maybe, just maybe, these ideological rubes will finally accept the obvious truth:

Those corrupt corporate-backed pigs just aren’t that into us.

So boycott the pigs. It is time for Real Liberals to kick Team Democrats to the curb. It isn’t hard. Next November all you have to do is…

Nothing.

Just.

Don’t.

Vote.

In other countries voter boycotts have a long and proud tradition as a way to effect pressure on a non-responsive political system. Think the politicians won’t care if you don’t vote? History proves you wrong. Even in dictatorships where only one candidate appears on the ballot, regimes go to desperate lengths to get people to turn out to vote. Why? It proves the government’s legitimacy.

Samuel Huntington cites the example of apartheid-era South Africa in his book “The Third Wave: Democratization in the Late Twentieth Century”: “In the 1988 municipal elections, the [pro-apartheid] South African government…clamped down on pro-boycott opposition groups and made it unlawful for individuals to urge a boycott.” The African National Congress then upped the ante, declaring its intent to “use revolutionary violence to prevent blacks from collaborating [by casting a vote].”

Extreme, perhaps. Effective, definitely. The ANC is now the majority incumbent party in post-apartheid South Africa.

Are you Real? Or do you play for a Team?

If you’re a Real Liberal, you espouse liberal values and policies that you think would make America a better place. If you’re a partisan of Team Politics, you only care about one thing—whether the Democrats get elected. You couldn’t care less about policy.

Which side are you on?

Like Clinton and Carter before him, Obama has sold out core liberal Democratic principles, such as fighting for the weak and poor and expanding the social safety net, as well as civil liberties. He can’t point to a single major liberal policy achievement. Heck, Obama hasn’t proposed a major liberal bill. Even so, Team Democrats will vote for Obama in 2012. Team Democrats are Democrats first, liberals last.

Real Liberals, on the other hand, have no reason to support the Dems. The debt limit deal makes this painfully clear.

Paul Krugman, the only reason to read The New York Times op/ed page, calls the debt limit deal “a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.”

Krugman is a Real Liberal. Real Liberals care about liberal policies—defending old liberal victories such as Social Security and Medicare, as well as struggling to achieve new gains like a public-works program to put the unemployed to work.

Real Liberals give Democratic politicians the benefit of the doubt. But after they prove themselves to be a DINO (Democrat In Name Only), Real Liberals withhold their support. Classic example: Joe Lieberman, the senator from Connecticut. Current version: Barack Obama and his allies.

Obama has been locked in an epic showdown with House Republicans for weeks. Matador vs. bull. Scary and exciting.

First and foremost, the debt ceiling debate was ridiculous from the start. The economy is at a standstill. Recent GDP numbers came in at a sub-anemic 1.9 percent, so low that the real unemployment rate of 21 percent will continue to increase. Foreclosures are emptying out whole neighborhoods.

The traditional, historically proven Keynesian response to Depression is for the government to spend more. Members of both major parties know this. Yet here they were, both agreeing to spend less, indeed to slash the budget by historic amounts. If the Democrats had an ounce of sense, much less principle, they would have refused to discuss budget cuts at all. (Although an end to the wars would be nice.)

Obama and Congressional Democrats went along with trillions in cuts, cuts that may lead to Soviet-style collapse. The Dems’ only demand was that a final agreement include tax increases on the wealthy.

In the end, the Hopey Changey matador hopped the fence and fled the stadium. The GOP got their cuts. The Dems didn’t get a cent of taxes on the rich.

OK, Real Liberals. It’s been three years. You know Obama’s record. Obama never fights. When he does, it’s for conservative values, like slashing the federal budget and giving our money to millionaire bankers.

Why would you vote for him, or any Democrat, next year?

I know, I know: the Even More Insane Evil Republicans would take over. Après nous, la deluge. To which I ask, really, truly, no sarcasm—what difference would it make?

What if John McCain had won in 2008? Do you think we’d be at war in more countries than Afghanistan, Iraq, Yemen, Somalia and Libya? Would the Republicans have done less than Obama for the unemployed and homeowners getting evicted from their homes?

How much longer are you going to tolerate the sellout Democrats? How many more times are you going to stand in line to cast a vote for these treacherous scum?

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL