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DMZ America Podcast #68: Neofascism in Italy. Is the Fed destroying the economy for the rich? Snowden granted Russian citizenship

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Ted Rall

Ted Rall, coming at things from the Left and Scott Stantis, coming from the Right, tackle the major issues of the day. First off, Italy elects Giorgia Meloni, head of the Brothers of Italy, a political party founded by neo-fascists which begs the question: is the whole world going totalitarian or what? Next, Scott and Ted discuss the Fed and its passion for bringing back the ’70’s and all the economic pain that comes with it. Lastly, breaking news as Edward Snowden, ( Ted wrote his biography), is granted Russian citizenship by Vladimir Putin. Is this just the Russian system working or is it Putin thumbing his nose at America? All of this and more on the best podcast in the world!

 

 

What’s Worse Than Inflation? Fighting Inflation.

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Ted Rall

            Inflation is a cancer. It eats away at savings and consumer confidence. But the tools the United States government uses to fight inflation are often worse—they’re a form of chemotherapy that’s even more likely to kill the economy than the underlying disease. When your car is careening down a hill, slamming on the brakes is an inexperienced driver’s first instinct. But it’s the last thing you should do. Unfortunately, the history of inflation-fighting indicates that monetary policymakers seem to prefer crashes to soft landings.

            Fueled in large part by massive deficit spending as the Pentagon tried to bomb its way to victory in the unwinnable Vietnam war, inflation ran rampant from the latter part of the presidency of Richard Nixon through that of his successor Gerald Ford, and infamously contributed to the destruction of Jimmy Carter’s reelection chances.

Inflation encourages consumer spending because, if you put off a purchase, it will cost more later. Enter Paul Volcker, appointed to the chairmanship of the Federal Reserve Bank in 1979. Determined to radically reduce spending and wages, he applied the anti-stimulus of sky-high Fed interest rates that peaked out at nearly 20% in 1981, Reagan’s first year in office. The result was two back-to-back recessions, which saw unemployment soar even higher than during the Great Recession of 2008-11.

            Inflation was dead for the foreseeable future. With the benefit of hindsight, however, the cost of taming inflation was too damn high.

            Reagan’s supply-side policies, which centered around tax cuts for large corporations and wealthy individuals coupled with austerity for everyone else, combined with Volcker’s hard line on inflation to create an anemic mid-1980s recovery before the 1987 stock market crash marked the start of yet another Republican bust.

It is, of course, impossible to brush away the cynical conclusion that crushing workers and their economic power was and remains a feature of the capitalist system and its stewards in government and finance. Reagan and his merciless smashing of the air traffic controllers union—leading to years of union-busting—coincided neatly with those 30+ years of non-existent raises, as well as private-sector union membership falling off a cliff. Throughout the 1950s, 1960s and 1970s, there were between 200 and 400 major strikes by labor unions each year. When Reagan left office in 1988, there were 40. There were just seven in 2017.

Unsurprisingly, taking away power from workers and giving it to bosses made things worse for workers. The Reagan years radically widened the income gap between low- and high-income earners for the following three decades—even though the average American worker was increasingly efficient and productive year after year. Between 1979 and 2019, productivity increased 60% while wages only went up 16%. Windfall profits went to shareholders and owners.

            Ironically, wage stagnation came to its merciful, all-too-brief conclusion in 2020, when people weren’t working at all. Between March and June of that year, when many furloughed workers were sitting at home during the COVID-19 pandemic lockdown, government stimulus checks  caused real wages to increase relative to inflation. Increased savings allowed employees to quit in droves in the so-called Great Resignation; labor unions chalked up some impressive victories as emboldened wage slaves stood up for themselves.

            The worst inflation crisis of the past century was sparked by the end of World War II-era price controls on a wide array of rationed commodities and a surge in pent-up demand. (The latter is, at a smaller scale, the main force behind inflation today.) In 1947, the inflation rate rose to 20%. What’s interesting is what the Fed did not do in response: raise interest rates. It couldn’t. It didn’t have that power then.

Instead, fiscal policy makers refused to extend additional credit to the big banks — which had contributed to inflation — and waited for consumers to satisfy their pent-up demand. This they did by 1948. With no one to slam on the brakes, there was a quick, mild recession in 1949 followed by an impressive period of economic expansion in the 1950s. This episode from the Truman era strongly suggests that current Fed policy of raising short-term interest rates is a mistake. The only solution to pent-up demand is no solution at all. Just sit back and wait.

(Ted Rall (Twitter: @tedrall), the political cartoonist, columnist and graphic novelist, co-hosts the left-vs-right DMZ America podcast with fellow cartoonist Scott Stantis. You can support Ted’s hard-hitting political cartoons and columns and see his work first by sponsoring his work on Patreon.)

 

Gas Policy à la Carte

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Ted Rall

President Joe Biden and his advisors tell American motorists that they must pay higher gas prices “as long as it takes” to fight in Ukraine and promote the “liberal world order.” Perhaps gas should be sold by which policies its prices are based upon.

Bourgeois Feminism

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Ted Rall

The decision of the United States Supreme Court to no longer guarantee the right of a woman to get an abortion helps to expose other, equally important rights, that are not guaranteed under the United States Supreme Court or, for that matter, the United States government at all.

Nothing to Worry about

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Ted Rall

Humanity seems absolutely determined not to do anything about the climate change crisis or the environment. But think about the bright side: rising oceans will resolve all sorts of issues that we actually pay attention to.

Be Careful What You Mitch for

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Ted Rall

Polls indicate that Democrats are about to suffer a shellacking in the 2022 midterm elections. Voters are unhappy about inflation, supply chain problems and other issues, but Republicans should be careful what they want — once they are in charge of Congress, they will catch much of the blame for the issues that allowed them to win in the first place.

DMZ America Podcast #53: If I Were President! What We’d Do on Inflation/Economy, Human Rights/Foreign Policy & Guns/Red Flag Laws

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Ted Rall

Ted Rall and Scott Stantis believe that every political cartoonist should know what he or she would do if they became President of the United States. This week we put that question to the test. What, if anything, can the president do to combat inflation? As President Biden prepares to suck up to murderous Saudi Arabia, does he have an alternative? Are red-flag laws common-sense gun legislation or are they the first step down the path to dystopian authoritarianism?

 

 

E Pluribus Nada

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Ted Rall

If a two-party democratic system is to be viable, it has to have a basic shared set of facts, values and issues about which people may differ, and should differ, about solutions. At this point in time, however, the United States doesn’t qualify because the American people are obsessed about totally different things depending on their political orientation.

DMZ America #48: Pulitzer Prize, Roe v. Wade and our Rotten Economy

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Ted Rall

In this episode Ted, (who is suffering following his fifth Covid shot), and Scott discuss the lousy state of editorial cartooning illustrated by the horrendous winners of the Pulitzer Prize. Next, they discuss the aftermath of the leaked SCOTUS Roe v. Wade decision and the state of progressives in the United States. Lastly, the U.S. economy in free fall and the Biden administration’s stumbling response.

 

 

Better a Pretend Fight Than None at All

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Ted Rall

           A friend and I were at a bar when someone opined that France didn’t resist the German invasion in 1940. “It’s true, France lost fast,” my friend replied. “But they fought hard. They lost 90,000 troops in six weeks. It was a bloodbath. We lost 58,000 over a decade in Vietnam but we’re still whining about it.”

            Every conflict ends with a winner and a loser. There is no shame in losing—only in not trying.

            Democrats need to learn this lesson. Voters want their elected representatives to fight for them.

This administration is not without accomplishments: last year’s coronavirus stimulus package saved millions of Americans from bankruptcy and prevented a recession; though poorly executed, President Biden deserves praise for the withdrawal from Afghanistan; and, inflation aside, workers are benefitting from rising wages and record-low unemployment. The pandemic seems to be in our rearview mirror. Now, The New York Times reports, party bosses are trying to decide on a unified message for the midterms: “Should they pursue ambitious policies that show Democrats are fighters, or is it enough to hope for more modest victories while emphasizing all that the party has passed already?”

            Democrats have been bragging about their accomplishments for months. But “Democrats deliver”—their flaccid midterm slogan—hasn’t delivered.

            The news that the United States Supreme Court plans to overturn Roe v. Wade may well sweep aside the other issues that have been percolating in voters’ minds over the last few months. But conservatives are just as energized as liberals when it comes to abortion. And many progressives are asking themselves: why didn’t Democrats pass a federal abortion rights law when Obama had a 60-vote supermajority in the Senate? At other times, why didn’t they go on the record with a vote? Abortion repeal probably helps Democrats, but not as much as they think and not enough to keep control of Congress.

Before the Supreme Court leak, Joe Biden’s own pollster was repeatedly warning Democrats that disaster loomed in November. The president’s approval ratings stubbornly refuse to budge above a dismal 40%, hobbled by incredibly shrinking support among voters under age 30. Vegas bookies give the GOP three-to-one odds of recapturing the Senate and a 90% chance of taking back the House. “We haven’t sold the American people what we’ve actually done,” Biden moaned recently.

            Messaging isn’t the only problem. “Allies and some voters note that polling is partially driven by anger over extraordinary events, including the war’s impact on gas prices, that the White House could not fully control,” the Times says. Of course, it was Biden’s decision to get involved in Ukraine and to impose sanctions against Russian oil and gas. Gas prices wouldn’t be soaring if Democrats hadn’t gone after Russia. It was an unforced error.

            When you control Congress and the White House, and voters are angry at you because they don’t think you have done anything for them, you don’t calm them down by telling them that they are wrong and stupid and that, actually, you have done all sorts of good things for them that they have been too ignorant or ungrateful to recognize. There’s only one way to campaign: tell people that you get it, you understand their pain, and you’re going to fight like hell to make them feel better.

“People can forgive you, even if you can’t get something done,” Nina Turner, a progressive challenging an establishment Democrat for an Ohio congressional seat, argues. “What they don’t like is when you’re not fighting. And we need to see more of a fighting spirit among the Democratic Party.”

For Democrats, however, not fighting – not even going through the motions of pretending they are fighting — is longstanding procedure. House Speaker Nancy Pelosi maintains a strict policy of not putting a measure up for a vote unless she is certain that a Democratic bill will pass. Like other corporate Democrats, she believes a losing vote is a sign of weakness.

Thus the refusal to try to federally legalize abortion rights.

Refusing to hold losing votes in Congress has led to one disappointment after another for progressives. After counting votes in the Senate, President Barack Obama decided in 2010 not to hold a vote on a “public option” in the Affordable Care Act. He blamed recalcitrant Republicans. Without forcing them to oppose this wildly popular idea on the record, however, Republicans could never be held to account in attack ads. (“Congressman Jackson hates people like you. That’s why he voted against health care for your babies!”) Meanwhile, Obama took heat from the left for breaking his campaign promise.

You can argue that you secretly, in your heart of hearts, wanted something that you never put up for a vote. But who will believe you?

Obama betrayed his promise to close Guantánamo for the same reason: he didn’t think he had the votes in the Senate. No one remembers that now. Americans who care about the issue remember that Obama was unwilling to spend political capital to shut down the camp.

Joe Biden’s adherence to Democrats’ count-votes-first practice on his Build Back Better infrastructure plan was more understandable. After conservative Democratic Senator Joe Manchin announced that he wouldn’t support it, the White House pulled the $1.75 trillion bill from Senate consideration because it would have highlighted internal divisions within the party. Sometimes, however, a rogue member of your own caucus must be reined in. If Democrats wanted to show their left-leaning base voters that they were fighters, they would have disciplined Manchin by taking away his committee memberships and held the vote despite inevitable defeat. Then they could have run ads against Republican senators who opposed a giant jobs package.

Democrats have failed to hold votes on increasing the minimum wage to $15 an hour, student loan forgiveness or bold action to mitigate the effects of the climate crisis. While it is true that these ideas might go down to defeat against a united GOP and Democrats in Name Only like Manchin, young voters in particular would like to see them put up for a vote and fought for. And those “nays” could be leveraged against vulnerable Republicans.

Republicans understand the optics of appearing to fight for a cause dear to their voters even if it’s doomed—especially if it’s doomed. Knowing full well they didn’t stand a chance at succeeding, the GOP voted 70 times to repeal Obamacare. After Trump won in 2016, however, they didn’t move to repeal or truncate—because the ACA was popular. “Now that it makes a difference, there seems to not be the majority support that we need to pass legislation that we passed 50 or 60 times over five or six years,” Rep. Mo Brooks of Alabama admitted. Fighting and losing—even pretending to fight only when defeat is assured—gets more results than pointing at your supposed actual accomplishments.

It may well be that corporate Democrats are too beholden to their major donors to, say, increase the minimum wage. Unless the polling changes in a big way, Democrats will have an opportunity to virtue-signal about the minimum wage and student-loan forgiveness the same way the Republicans did on the ACA beginning early next year.

(Ted Rall (Twitter: @tedrall), the political cartoonist, columnist and graphic novelist, is the author of a new graphic novel about a journalist gone bad, “The Stringer.” Order one today. You can support Ted’s hard-hitting political cartoons and columns and see his work first by sponsoring his work on Patreon.)

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