Tag Archives: austerity

Political Rants

Cheapskates “R” us.

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This will be brief. I’m in the middle of a take-home mid term in Semantics. (Still a student at 54; Christ on a freaking bike.) Anyway…

Today is the day that extended SNAP (food stamp) benefits expire. Happy Halloween, everybody! SNAP was allocated some additional money in the stimulus package, way back in early 2009, when it almost seemed possible that our national government would do what needed to be done to rescue the economy. The assumption back then was that the economy would be generating enough prosperity by this time that SNAP benefits wouldn’t be needed.  Obama’s chief economic adviser at the time – a certain Dr. Pangloss, I believe – was certain Congress and the president would remain committed to putting people back to work.

Help us, Austerians!Then, of course, the Austerians came to power in 2011 and set us on the righteous path of Japan in the 1990s – the path we are crawling along today on our bloody hands and knees. Millions are still out of work, millions more under-employed with zero security, many more working their asses off and still needing SNAP benefits, still needing the support of food pantries. These millions of people are now the favored target of the Austerians. If people are in need, surely it’s their fault and not the fault of policymakers who will do anything rather than invest in economic growth. SNAP has grown to $80 billion a year! they exclaim. What’s their solution? Allocate money for, say, public works projects while interest rates are low so that we can repair and replace our aging infrastructure, invest in our future, and create jobs? God, no! Cut SNAP by $40 billion.

The Democrats, true to form, have an alternative to this draconian policy: Cut $4 billion from SNAP. Screw the poor, only not so much; that’s their considered answer. Now they’ll work on a compromise that will cut somewhere, I suspect, closer to the GOP number. While they hash this out, today’s expiration of the SNAP extension means the average family receiving the benefit will get $35 less a month with which to feed their families. This makes an enormous difference to families already on the edge.

This is why we suck. Let’s just stop sucking, right?

luv u,

jp

Political Rants

Pay now, pay later.

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What does the tea-party acronym stand for again? Taxed Enough Already, as some of you recall. That’s the credo for our age, whether or not there’s any truth to the sentiment. If people are paying higher taxes, they’re doing so on the local level; as county and municipal governments try to grapple with austerity policies from above, they resort to whatever means of revenue generation that may be available to them. Federal austerity starves state coffers; that in turn negatively impacts localities. Combine that with the fact that we are in the midst of a depression of sorts – i.e. a period when people need greater assistance from the government, not less – and that causes upward pressure on local taxes.

When that happens, people inevitably look for someone to blame. Lately that someone has been unionized public employees. Sad to say, my fellow Americans are all too quick to think the worst of them. That’s not surprising. A lot of editorial ink, political rhetoric, and advertising resources have been placed against vilifying the very notion of working for government. It’s a waste of money, they’re a bunch of lazy layabouts who can’t make it in the private sector, etc., etc.  For a long time that blanket criticism seemed confined to, say, the people down at the DMV, but in recent years it’s been expanded to teachers and even public safety employees.

Here’s what the critics – at least, the non-cynical critics – don’t appear to understand: When you lay off public workers, you create more problems than you solve. For one thing, you make whatever institution they worked for less effective; that means less value to the taxpayers. For another, those individuals are now out in the public sector workforce, competing for the same jobs that everyone else is trying to get. Thirdly, their lost income results in less consumer spending (yes, public workers buy groceries, clothes, and gasoline just like the rest of us), which means lower consumption tax revenues, which means – yep – budget gaps of the type we’re grappling with now.

What’s needed, as Jim Galbraith, Paul Krugman, and others have pointed out, is federal stimulus – aid to state and local governments so that they can stop shedding jobs and adding to the ranks of the unemployed, infrastructure spending that will build out the economy and create jobs at the same time, and other public investments.

Perhaps if the GOP could take a break from passing radical anti-abortion legislation for about five minutes, perhaps they’d consider doing something about this depression. Just saying.

luv u,

jp

Political Rants

Austeritarianism.

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The international consensus on forced austerity was soundly rejected this past week in both Greece and France. That’s what happens when you let people speak their minds – they sometimes opt for inconvenient solutions. As much as I love Jon Stewart, even he got this one wrong – the Greeks are not political confusniks addicted to cradle-to-grave government benefits. Their financial train wreck is as much a function of wealth privilege over there as it is over here. When they went to the polls this past weekend, they chose the parties that opposed the Euro zone plan, both on the left and the right. That’s not surprising; the bailout basically benefits that country’s financial sector, at the cost of Greek workers. There have always been political groupings on the extreme left and right in Greece, so everyone went for the candidates who (a.) opposed the bailout and (b.) aligned with them politically, generally speaking.

The bankruptcy of what Greek and French voters rejected couldn’t be more obvious. Greece has gone through several cycles of austerity-driven budget cuts, massive layoffs, rate hikes, etc., and the result has been the same. Step 1: You cut budgets, you throw government workers out on the street, and there’s less money in the economy. Step 2: Lower aggregate earnings and consumer spending means less revenue into the government, which in turn widens the budget deficit. Step 3: The Eurozone demands more cuts.  Step 4:  see Step 1. Mix and repeat. Can you say “death spiral”? This is, in essence, what is happening in England and in the United States in slightly less dramatic fashion, though on a much grander scale since their economies are so much larger than Greece’s.

So… the people have spoken. And the markets are reacting. Not real fond of democracy, the investment community. It involves way too much uncertainty. The fact is, they are grappling with many of the same problems that are plaguing us. We had an overinflated housing market, blown up even further by derivatives speculation, then when the whole house of cards came crashing down, our deeply deregulated banking system left some of our largest financial institutions almost fatally exposed. Their crisis was in part precipitated by ours, but because they have a monetary union and not a political union, it seems like 20-odd different crises rather than one big conglomerated one. And just as austerity is lengthening the depression (yes, depression – ask Krugman) over here, it will bring only misery to the continent as well.

This system is obviously broken. Cutting spending may serve other political ends, but it will not fix the problem.

luv u,

jp