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Chernynkaya On June - 4 - 2011


Short news today—plus some oddities. You can access all the past editions of The Daily Planet on the green Category bar on the top of each page under the heading PlanetPOV.

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ECONOMY

My Favorite Economics Professor: Understanding the China / US Economic Relationship – Richard Wolff

If you like Professor Wolf, Truthout has more of his videos:

Why Europeans Fight “Austerity” More Successfully than Americans

Richard D. Wolff, | Video

 

MEDIA


ABC’s Karl: There’s No Dem Plan for Medicare (Except for the New Law)

FAIR:

The roundtable panel on ABC’s This Week (5/29/11) spent some time talking about the politics of Medicare, specifically the idea that the recent Democratic victory in a special Congressional election in New York could mean that Paul Ryan’s Medicare plan might be a tremendous liability for the GOP.

One of the most prevalent talking points from the Republican side is to complain that while Ryan’s plan might have its flaws, at least they have something–unlike the Democrats. It was a point that ABC reporter Jonathan Karl passed along as fact:

[Bill Clinton] said that I hope Democrats don’t use this as an excuse to do nothing. And that is exactly what Democrats are doing right now. There is no Democratic plan on reforming Medicare; we’re waiting for the president to come out with a plan. The president’s old budget lost 97-0 in a vote in the Senate, so, you know, I mean–Republicans are scared. They are definitely scared. But there is nothing coming from the other side.

Most people remember a big national debate over healthcare happened not too long ago. The law that passed–the Affordable Care Act, or “Obamacare” to its GOP critics–included several provisions intended to control the cost of healthcare, including Medicare. This was part of the reason Republicans were screaming about “death panels.”

The parts of the Affordable Care Act that pertain to shrinking the cost of Medicare have been pretty well-explained for a while now. A recent piece from the Kaiser Health News explains how the Independent Payment Advisory Board created by the law would work:

Q: What will IPAB do?

A: Beginning with fiscal 2015, if Medicare is projected to grow too quickly, the IPAB will make binding recommendations to reduce spending. Those recommendations will be sent to Capitol Hill at the beginning of each year, and if Congress doesn’t like them, it must pass alternative cuts–of the same size–by August. A supermajority of the Senate can also vote to amend the IPAB recommendations. If Congress fails to act, the secretary of Health and Human Services is required to implement the cuts by default.

This (and more) was explained in a Washington Post column by Ezra Klein in April. Igor Volsky at Think Progress wrote a post last year showing how Medicare cost containment will work. There’s no shortage of information explaining how this will work now that it is law. One could argue that none of it will work, of course, but that’s not the same as saying there is no plan but the Paul Ryan plan. That’s what Republicans want people to believe–and reporters like Jonathan Karl are doing their best to help.

 

“Dear Media: Is that a REAL scandal in your pocket or are you just glad to see me?”

The Political Carnival:

 

The Dark Past Of The “Weinergate” Co-Pilot

 

The Twitter user who first floated the rumor that a lewd photo scandal was brewing for Representative Anthony Weiner is not your typical conservative avenger, an investigation by The Smoking Gun has determined.

Mike Stack, a 39-year-old New Jersey resident, is known as “goatsred” in the Twitterverse, where he has helped lead a months-long assault on the New York City politician. Stack was joined at the hip in this pursuit by “patriotusa76,” who gave his name as “Dan Wolfe” and was the online avenger who happened last Friday night to discover the notorious tweet emanating from Weiner’s account.

As TSG reported yesterday, “Dan Wolfe” has conveniently evaporated in the wake of “Weinergate.” In fact, today Wolfe’s entire Twitter page was deleted.

But Stack, the other Twitter Twin, remains online. An examination of his background has discovered:

* Stack, who aggressively pushed the story about Weiner’s underpants shot, has worked as a moderator on a pornography web site, and been a regular commenter on several other X-rated sites. Stack describes himself as a “Pervert” on one site, where his avatar, captioned “Antichrist,” is a drawing of President Barack Obama as Jesus Christ.

* New Jersey court records show that Stack was convicted of drunk driving in February 2008. He was previously arrested for domestic assault in July 2004 following a drunken fight that left his girlfriend with bruises on her arm (that case, though, ended with a dismissal in April 2005). Stack is pictured above in a mug shot taken by the Readington Township Police Department following his 2004 collar.

* Stack has twice declared bankruptcy during the past 14 years. His most recent Chapter 7 case ended in July 2008, around the time Stack lost his Hunterdon County home to foreclosure. At the time of that filing, Stack reported working as a warehouseman for Johnson & Johnson.

* The Internal Revenue Service last year filed a $5907 federal tax lien against Stack.

“The past is the past,” Stack said in an interview today. Describing himself as a “private person,” he added, “there’s no reason my records need to be public.”

Stack also contended that while he sent out the May 5 tweet first hinting that a “big time” Congressman was about to be ensnared in a sex scandal, he claimed that Wolfe actually provided him that information. Wolfe, Stack said, told him that he had heard the rumor from a source who worked for a well-known conservative web site.

After Stack sent out the initial tweet, Wolfe quickly ran with the rumor, attributing it–“[email protected]”–to his online buddy. In retweets, Wolfe immediately attached Weiner’s name to the rumor, wondering “@RepWeiner are you this Congressman?” Stack did not have an explanation as to why Wolfe sought to launder the rumor through him. He also vehemently denied that he was Wolfe.

While Stack’s rap sheet and financial calamities may be of interest to “Weinergate” followers, his affiliation with porn sites might raise the eyebrows of the conservative coterie with which he is affiliated.

In mid-2009, TSG discovered, Stack began working as a moderator on xxxporntalk.com, which describes itself as the sex industry’s “ultimate” discussion forum. Stack first registered with the site, known as “XPT,” in December 2007 and used the handle “redgoat” and the Obama “Antichrist” avatar. His original avatar was a photo of Obama bicycling with a helmet on his head (an image that has been ridiculed by the president’s detractors).

After a brief hiatus from XPT, Stack announced his return to the site with a May 11 post entitled “Welcoming Myself Back.” He wrote, “Love me, or hate me, I’m planning to be here a lot more starting tomorrow. I’ve missed the perversion and dysfunction, but am sure it still reigns supreme.” Stack added, “To my friends, the rumors of my death have been greatly exaggerated. To my enemies: Go fuck yourselves. Let the games begin.”

Stack has also been a frequent commenter on other porn industry discussion sites, where he has been known to tangle with other users. During a January 2009 discussion on the Porn Star Babylon blog, Stack wrote to a female commenter that, “I just know not to look a gift horse in the mouth. Kind of like when your daddy shoves his cock in your mouy=th.” He dismissed another rival as a “Closeted fag,” and asked, “did your daddy touch you in your private place? Did you snap towels in the locker room with the other guys?”

MORE>>>


Repost:How Roger Ailes Built the Fox News Fear Factory

Rolling Stone:

At the Fox News holiday party the year the network overtook archrival CNN in the cable ratings, tipsy employees were herded down to the basement of a Midtown bar in New York. As they gathered around a television mounted high on the wall, an image flashed to life, glowing bright in the darkened tavern: the MSNBC logo. A chorus of boos erupted among the Fox faithful. The CNN logo followed, and the catcalls multiplied. Then a third slide appeared, with a telling twist. In place of the logo for Fox News was a beneficent visage: the face of the network’s founder. The man known to his fiercest loyalists simply as “the Chairman” – Roger Ailes.

“It was as though we were looking at Mao,” recalls Charlie Reina, a former Fox News producer. The Foxistas went wild. They let the dogs out. Woof! Woof! Woof! Even those who disliked the way Ailes runs his network joined in the display of fealty, given the culture of intimidation at Fox News. “It’s like the Soviet Union or China: People are always looking over their shoulders,” says a former executive with the network’s parent, News Corp. “There are people who turn people in.”

This article appears in the June 9, 2011 issue of Rolling Stone. The issue will be available on newsstands and in the online archive May 27.

The key to decoding Fox News isn’t Bill O’Reilly or Sean Hannity. It isn’t even News Corp. chief Rupert Murdoch. To understand what drives Fox News, and what its true purpose is, you must first understand Chairman Ailes. “He is Fox News,” says Jane Hall, a decade-long Fox commentator who defected over Ailes’ embrace of the fear-mongering Glenn Beck. “It’s his vision. It’s a reflection of him.”

Ailes runs the most profitable – and therefore least accountable – head of the News Corp. hydra. Fox News reaped an estimated profit of $816 million last year – nearly a fifth of Murdoch’s global haul. The cable channel’s earnings rivaled those of News Corp.’s entire film division, which includes 20th Century Fox, and helped offset a slump at Murdoch’s beloved newspapers unit, which took a $3 billion write-down after acquiring The Wall Street Journal. With its bare-bones news­gathering operation – Fox News has one-third the staff and 30 fewer bureaus than CNN – Ailes generates profit margins above 50 percent. Nearly half comes from advertising, and the rest is dues from cable companies. Fox News now reaches 100 million households, attracting more viewers than all other cable-news outlets combined, and Ailes aims for his network to “throw off a billion in profits.”

Slideshow: An hour-by-hour look at how Fox disguises GOP talking points as journalism

The outsize success of Fox News gives Ailes a free hand to shape the network in his own image. “Murdoch has almost no involvement with it at all,” says Michael Wolff, who spent nine months embedded at News Corp. researching a biography of the Australian media giant. “People are afraid of Roger. Murdoch is, himself, afraid of Roger. He has amassed enormous power within the company – and within the country – from the success of Fox News.”

Read about the GOP’s dirty war against Obama

Fear, in fact, is precisely what Ailes is selling: His network has relentlessly hyped phantom menaces like the planned “terror mosque” near Ground Zero, inspiring Florida pastor Terry Jones to torch the Koran. Privately, Murdoch is as impressed by Ailes’ business savvy as he is dismissive of his extremist politics. “You know Roger is crazy,” Murdoch recently told a colleague, shaking his head in disbelief. “He really believes that stuff.”

12 MORE pages of good stuff>>>

 

 

POLITICS

 

On the Maddeningly Inexact Relationship Between Unemployment and Re-Election

Nate Silver:

Make no mistake: the higher the unemployment rate in November 2012, the less likely President Obama is to win a second term.

But we should be careful about asserting that there is any particular threshold at which Mr. Obama would go from favorite to underdog, or any magic number at which his re-election would either become impossible or a fait accompli. Historically, the relationship between the unemployment rate and a president’s performance on Election Day is complicated and tenuous.

An article in today’s Times notes, for example, that “no American president since Franklin Delano Roosevelt has won a second term in office when the unemployment rate on Election Day topped 7.2 percent.” That was the unemployment rate in November 1984, when Ronald Reagan resoundingly won a second term.

This type of data may be of limited use for predictive purposes, however. Reagan won re-election by 18 points, suggesting that he had quite a bit of slack. An unemployment rate of 7.5 percent or even higher would presumably have been good enough to win him another term.

It’s also not obvious that Roosevelt should be excluded from the calculus, particularly given that the economic crisis the country is working its way out of now is the most severe since his administration. He won re-election in 1936 with an unemployment rate of 16.6 percent, and again in 1940 with a rate of 14.6 percent.

For Roosevelt, at least, the unemployment rate was headed in the right direction: down from 19.8 percent in 1933, the year he took office. This was also true for Reagan, although only barely so: he inherited an unemployment rate of 7.5 percent from Jimmy Carter, seeing it drop to 7.2 percent in time for his re-election.

The unemployment rate when Mr. Obama took office was 7.8 percent — and he may not follow in his predecessors’ footsteps by leaving it in a better place than he found it. As of last month, private forecasters like Wells Fargo and The Wall Street Journal’s forecasting panel were anticipating an unemployment rate close to 7.8 percent by late 2012. But those forecasts preceded a bevy of poor economic reports, which may lead some economists to lower their estimates.

Looking at unemployment in this way — as the rate of change over a president’s term — is probably the more worthwhile approach. But it, too, is not always reliable. Unemployment increased by 1.9 percentage points over the course of Richard M. Nixon’s first term, but he won re-election easily. It also increased in George W. Bush’s and Dwight D. Eisenhower’s first terms, and their re-election bids were also successful. The unemployment rate fell to 3.9 percent from 5.3 percent, meanwhile, in Bill Clinton’s second term — but his vice president, Al Gore, could not beat Mr. Bush in the Electoral College.

There are also cases in which the data behaved more intuitively: Jimmy Carter and the elder George Bush all faced high unemployment rates when they lost their re-election bids, as did Gerald R. Ford in 1976, and that was surely a factor in their defeats. But historically, the correlation between the unemployment rate and a president’s electoral performance has been essentially zero.

In the chart below, I’ve provided unemployment data for the last century’s worth of presidential elections, comparing the unemployment rate on Inauguration Day to the one that the president (or the incumbent party’s candidate) faced on Election Day. Data for 1948 onward is on a monthly basis, while only annual estimates are available before then. […]

Perhaps if you go through enough iterations of this exercise — which range of years you look at, which presidents were elected or which ones assumed the office through death or resignation, where you define the starting point and endpoint of a president’s term, which of the several unemployment data series you use — you can get the correlations up a bit higher. But almost no matter what you do — even if you’re more or less deliberately cherry-picking — they range from zero to fairly weak.

So does that mean that the unemployment rate should just be ignored and that the news media’s focus on it is misplaced?

No, I think that’s emphatically the wrong interpretation. The data is not really strong enough to prove there is a relationship — but because there are a relatively limited number of data points, it is also not strong enough to disprove that there is a relationship. In these cases, it is entirely permissible to default to common sense, which is that the unemployment rate should have some effect on a president’s re-election chances.

The problem is that whatever signal there is gets filtered through an awful lot of noise. Consider:

  • The unemployment rate itself is subject to fairly significant measurement error.

  • Voters will interpret the unemployment rate in different ways, and assign the president varying amounts of credit or blame for it.

  • The unemployment rate is but one of a number of salient economic indicators.

  • Economic performance is but one of the ways that voters evaluate a president.

  • Voters’ evaluation of a president is important, but they also consider the strength of a president’s opponents, including third-party alternatives in some elections.

If you could hold each of these other factors constant, you could come to a more confident conclusion about how much each tick in the unemployment rate affects Mr. Obama’s re-election odds. But the real world is not set up with these sorts of experiments in mind, and since presidential elections are infrequent, the likelihood that truly comparable cases will exist in the historical data is relatively low.

Some political scientists prefer other economic indicators to the unemployment rate, and there is evidence that measures like growth in real disposable income do a better job of predicting election results. Here, too, however, we ought to be cautious. There are literally thousands of plausible models that one might build, using different economic indicators measured in different ways and over different time periods, taken alone or in combination with one another, and applied to different subsets of elections that are deemed to be relevant. Some of these models, through chance alone, will produce a better fit on the historical data — but the relationships may be spurious and their predictive power will sometimes not be as strong as claimed. Even the most thoughtful, well-designed models — I like this one, for instance — can see their performance deteriorate quite substantially if small, seemingly benign changes are made to their assumptions.

Working with data like this gets tricky. We have a good sense for the cards that Mr. Obama holds — the different factors that will work for and against him — but our idea of how the hand will play out is quite fuzzy, and the rules of the game may change from election to election. Clearly, Mr. Obama’s odds will be impaired if his hand contains more deuces and treys than aces and kings — and that, in essence, is what weaker data from the labor sector implies for him. But this is an inexact science — more so than either journalists or political scientists tend to acknowledge.

 

Gar Alperovitz: The Prehistory of the Next Possible Progressive Era

At a time of acute pain for working people – when wages are stagnant, unemployment is high and levels of inequality are without precedent – historian and economist Gar Alperovitz sees not just despair, but hope.

Providing rich details of grassroots experimentation born out of necessity, Alperovitz argues that the United States may become the birthing ground for a new, radically transformative politics that has the potential to empower local communities, democratize wealth, provide meaningful employment and move the country toward true environmental sustainability.

Alperovitz is Lionel R. Bauman Professor of Political Economy at the University of Maryland. He is one of the founding principals of The Democracy Collaborative. Previously, he was a fellow at King’s College at Cambridge University, a founding fellow of the Institute of Politics at Harvard University, a fellow at the Institute for Policy Studies, a guest scholar at the Brookings Institution and a guest professor at Notre Dame University. He has also served as a legislative director in the US House of Representatives and the US Senate, and as a special assistant at the Department of State.

Keane Bhatt: You are perhaps most well known as a historian who revised the dominant narrative of the bombing of Hiroshima and Nagasaki. Does your work analyzing nuclear disaster and government policies during World War II provide any insight into Japan’s most recent catastrophe?

Gar Alperovitz: There are several broad questions: at the outset of the nuclear era, these kinds of problems were predicted by most of the top scientists. It was recognized that there was great danger with nuclear power, and that it had to be controlled very carefully, probably through an international agency with much greater restrictions and controls. So, as soon as the nuclear weapon became a possibility, some scientists, like Robert Oppenheimer, but many other officials in the federal government, were preoccupied with controlling its dangers.

There’s a different connection, not so much with Hiroshima, but with economics. And that’s why I actually stopped doing work on nuclear weapons. If you look back at the history of the bombings of Hiroshima and Nagasaki, you will find that this was all in the context of a larger attempt to help stabilize the world political-economic system along the lines of an American-dominated plan – what we now call globalization, though the term was not used at the time. But Hiroshima was almost certainly not necessary to end World War II. Most historians understand this, and that it was probably in significant part related to the Russians and their potential dominance over parts of Asia and Europe.

The underlying idea for all of this was how to run the global economy in a way that would both achieve American goals and prevent another depression, and the theory policymakers had was to open up the world and make sure it was run on American principles. For better or worse, they had what they believed to be a good vision, but I think their economics was wrong. Hiroshima was intimately related to that larger vision of what to do in the Asian mainland, the open-door policy with China, and in Eastern Europe. It’s a complex issue; I’ve tried to unravel the tale in some detail in my book, “Atomic Diplomacy.”

What do you mean when you say that planners meant well, but their economics was bad? Are you referring to the impetus to rebuild war-torn societies to the benefit of the US manufacturing base?

The priority was to develop models that were open to American trade and American investment, but not simply as a way to further American goals – that was the first element. They also saw this as a way to manage the global economy. They had been through two world wars and a Great Depression, in part, they thought, caused by trading blocks – both the German and Soviet – that broke down free trade. And their whole argument, like today’s argument, was to open up trade – that this is healthy for the global economy and healthy for peace. That was the larger theory that they were operating on, and it’s a theory that poses many challenges and many problems.

You are one of a few prominent economists today who says unequivocally that protectionism is a good thing. Can you explain that?

Well, protectionism is a strange term. The term I normally use is planned trade – and actually, many economists have been moving quietly in this direction, including people like Dani Rodrik and even the late Paul Samuelson, and, in modest ways, Paul Krugman. There is a role for some open trade, certainly. What’s happened in American policy is that it has developed in a way that has wiped out a good deal of American manufacturing. With the exception of a much-ballyhooed recent uptick due to the low value of the dollar, trade strategy has permitted massive inflows of Chinese and other products, and has often also meant setting up American companies abroad in China in order to re-import here, with the bottom-line result that American jobs are lost, American technological capacities are lost and American manufacturing capacities are lost.

There are a number of major business leaders, too, like Andy Grove of Intel, who are beginning to challenge the wisdom of this general strategy … I also recently read an interesting piece by a former Wall Street investment banker, John Fullerton, who was making the same case: that the whole trade strategy was essentially undermining our industrial base. And I think it’s quite obvious. If you want to alter that, you have to massively expand trade – and in a way that restricts Chinese and other imports, in order to begin redeveloping the industrial base. People call it protectionism or planned trade, or an alteration in trade policy. But one way or another, the current approach is obviously not the best for the American industrial or technological base.

Absent a national initiative to resolve the issue of a hollowed-out industrial base, you have said that local democracy is one way to combat the ravages of the highly financialized, highly globalized economic system. Could you explain that a bit more?

Regarding your question of local development, one interesting thing is an absence of any policy at the national level that can stabilize jobs, except the fading remnants of a small-scale Obama stimulus policy. There is no program aimed at creating jobs in communities around the country in a significant way, be it through trade policy, investment policy, stimulus policy or industrial policy. So, people are hurting really badly in many areas. I have been doing a lot of work in the Midwest, and there is devastation in cities like Cleveland, which has gone from a population of 900,000 to less than 400,000. Detroit has had even larger losses. There is simply no alternative: either there is new development from within the local base, or there is further decay. So, we’re seeing all sorts of experiments and very interesting innovations at the local level and sometimes using state policy.

You have said that services have become much more critical to the US economy than manufacturing. One benefit, you note, is that services are more locally oriented, and “many service-sector industries are also much less dependent upon and responsive to the vagaries and instabilities of global trade.” Could you explain this position and how it relates to the on-the-ground initiatives you are involved with in the Midwest?

The service sector has been expanding relative to the manufacturing sector. Part of that is the decline in manufacturing, partly that has to do with trade, technology and the inability of the political system to manage any serious policy to support those jobs. So, there are several factors involved in the decline. On the other hand, certain sectors have been expanding, most obviously medical care and education. Health care is now at 16 to 17 percent of GDP [gross domestic product] and is projected to go even higher, despite the current legislation. The elderly population is growing at this point, which means a greater presence of nursing homes and health care for the elderly. This expanding service sector provides streams of funding and is anchored around hospitals and nursing homes in big cities. Those institutions, incidentally, rarely get up and move the way that corporations may move, depending upon incentives and other business calculations. Often, they are called anchor institutions.

In Cleveland, we’re drawing upon the hospitals and, to a certain extent, the universities. They buy $3 billion in goods and services a year, and we’re trying to focus some of their purchasing power on community-owned and worker-owned cooperative production on a much more significant scale than has been done in the past, as a means of multiplying the given stream of income that is coming out of the service sector.

So, for instance, the Evergreen Cooperative complex of institutions produces green laundry services on a very large scale. Instead of the typical three gallons of water required to wash a pound of laundry, the Evergreen Cooperative Laundry does the same job with eight-tenths of a gallon, likely making it one of the greenest services of its kind in the Midwest. There is also an industrial-scale greenhouse for food services which will be on-line shortly; it will produce five million heads of lettuce a year. Another part of the complex is Ohio Cooperative Solar, which installs solar panels on the roofs of the city’s largest health, education and municipal buildings, and weatherizes them as well. There are other support systems, but they’re focused in significant part on the spending streams from the expanding sectors.

So, you’re focusing on generating income from anchor institutions whose design and imperatives are different from those of corporations.

In the nonprofit sector, which includes many hospitals and universities, the value system is not as aggressively commercialized. Some of the hospitals they call nonprofit operate like profit-making institutions, and so do some universities. But there are other values involved, like community service. Also, they’re anchored – they can’t move. So, they simply must respond. That’s one piece of it.

The other piece is that the structures that are being developed in the Cleveland model are attempting to be community-building structures as well as cooperative structures. And they’re quite sophisticated. Some people know about the Mondragon cooperatives in the Basque region of Spain, which have something like 100,000 employees – very large-scale cooperative efforts and very technologically sophisticated. That model is in part being integrated into the Cleveland model so that you get efficiency and scale, but also worker-oriented values: pay rates are 5 to 1 from top to bottom instead of 200-300 to 1, as you would find in a corporate division of labor. There’s also worker participation and control. And, even more importantly, cooperatives that are linked together through a revolving fund using a nonprofit structure, rather than existing individually, are necessarily oriented to the larger issue of the development of the community. This is crucial, but rarely understood. So, the structures have a different value of community as well.

You’ve pointed out that even if a firm is participatory and democratic in nature, if its economic activity is mediated through market relations, it will necessarily need to expand, compete and demonstrate socially unwelcome tendencies. So, the Cleveland architecture aims to bypass those antagonistic relations, right?

The attempt is to use the quasi-public market – the anchor institutions, in this case – to help stabilize these cooperatives and undercut some of the driving forces that they encounter as necessary pressures of the open market. I use “somewhat undercut” because I think you can’t do it totally or you will end up with the problems of traditional socialism, in which the market is so stable, so guaranteed, that there’s no incentive to innovate. So, there’s a balance that we’re trying to achieve where there is partly an external market which includes the usual market forces. But there is also a more stabilizing market – that’s the role of the quasi-public market. So, we’re looking to try to do that, and I think it’s an important principle to experiment with, develop and define further.

An exciting feature of the Cleveland model is the amount of wealth being generated among groups that are unfairly marginalized economically, such as African-Americans, those with lower educational attainment and ex-convicts. What’s the importance of community wealth creation, and why isn’t it an end to itself, but, as you claim, a motor through which we can achieve meaningful democracy?

We’re in the stage of developing institutional experimentation. It’s reached a significant stage of development in the Cleveland area, but many other cities are trying to replicate and expand beyond that. So, these are innovations that will hopefully continue to develop. Also, there is legislation which will shortly be introduced in the Senate that we hope will continue the learning process and developmental trajectory.

Having said that, over a period of the next ten years, we expect that workers in the Cleveland effort will accumulate a stake of about $65,000 in assets. And the wage structure is above the minimum wage, and it’s also above the wage structure at other comparable institutions. So, this in an important distinction: it is an attempt not simply to create jobs; it’s an attempt to create wealth in individuals and wealth that will stay in the communities.

Many development strategies like small business creation, for instance, create a fairly wealthy small businessman when they’re successful. But often, he moves out to the suburbs, leaving the community behind. Or, if you have successful development of a different kind, you get gentrification, which forces out people who can’t afford to stay there. So, we’re attempting, as a strategy, to stabilize the community as well as focus on job creation, and this also involves implementing a land trust.

Can you discuss how land trusts work? How they build community wealth and alleviate pressures of gentrification?

A land trust is simply a nonprofit corporation or a government agency that owns land, so that when development occurs, the profits of that development accrue to the owner, which in this case is public or nonprofit. And that’s very important in the context of gentrification, because if there’s a housing boom and the prices go up, poor people are kicked out because the prices are too high. So, if the land trust owns the land under the housing, it can stabilize housing costs. They already do this in many parts of the country because they are nonprofit corporations committed to low- and moderate-income housing.

Another example: when a city builds a subway system, land prices go up and the land becomes very valuable around every exit, because it’s a high-traffic area and commercial development is possible. So, who should own that land? If the city gives it away or sells it, then profits are made by the real estate developers. Many, many cities don’t do that now. They own the land and lease it so that they can make the profits from that implicit form of land trust, and pour it back, usually, into support for the mass transit system. That’s conventional now. What’s interesting about these various forms of democratizing ownership is that they’ve spread around the country in the last decade and a half and their numbers have gone from just a handful to hundreds. They answer a problem nothing else can. So, land trust development is an interesting example of what happens when there’s great pain. Traditional answers don’t work, and democratizing ownership in one or another way very often becomes a pattern.

You’re very worried about income inequality, which has gotten worse over time. But you put a lot more stress on wealth inequality. So, you’ve noted that the richest 400 people in the US own more wealth than the bottom 50 percent of the population. You also pointed out that the top 1 percent owns almost 50 percent of the society’s productive investment assets. Why is wealth inequality a more pressing issue for you?

Obviously, we’d be very interested in the income distribution aspects, too. But wealth distribution is so much more unevenly allocated in American society, and so little attention has been paid to it. Just think of those numbers: 1 percent owning just under 50 percent of the productive assets of the society. This means corporate stock, bonds and privately held businesses, and excludes a car or house. But even when you include a car or house in statistics of net worth, the numbers change somewhat, but the overall pattern is still extraordinary.

So, when you’re asking who owns the productive assets of the society, you’re asking who owns American capitalism. And that’s the top 1 percent, which owns just under half of it. So, that is literally a medieval structure. I don’t mean that figuratively. It is a feudalistic structure of extreme power and wealth. And it is anathema to a democracy to have that kind of concentration. I think many people are beginning to realize the control of corporate power and those who own the corporations. The Koch brothers get a lot of publicity, but as a general phenomenon, there is extraordinary ownership concentration.

If we’re interested in the question of democracy, then at some point over the long haul, wealth distribution – or as I call it, the democratization of wealth – needs to be one of the basic principles. Worker-owned cooperatives are one way to do that, land trusts are another, municipal part-ownership and public ownership like Medicare are among the various strategies to democratize ownership. There are likely to be many more in future, in my judgment.

You’ve noted that the recognition of illegitimate corporate control over sectors of the economy and political decisionmaking is a component of honest conservatives’ views as well. Do you see your framework and proposals transcending traditional divisions between left and right?

The argument that we’re making is essentially a progressive one, so there should be no doubt about its implications in terms of equity, distribution of income, and changing and democratizing ownership. But I think that the left in general ignored certain points that the honest conservative critique offered, as opposed to the political hacks that we see running around spouting rhetoric. And the genuine conservative critique really was about how you preserve liberty. And I think that requires many things, including decentralization, democratic processes, free time, and sufficient economic stability so people are secure. In “America Beyond Capitalism,” I wrote about the development of the institutional theory of liberty – not simply the legal or civil libertarian theory. And the genuine conservatives were better in focusing on this issue, at least. I don’t think they offered good answers; but they asked some of the important questions.

For instance, genuine conservatives, such as Milton Friedman’s teachers at the Chicago School of Economics, knew that the large corporation was anathema to genuinely free enterprise capitalism. So, if you read people like Henry C. Simons, founder of the Chicago School and Friedman’s most revered teacher, he says small business is good; community decentralization and democracy are very important, and many corporations are too big to be regulated – they will control the regulators. And this ardent conservative then calls for nationalization of certain corporations as the best way to preserve a conservative, private enterprise society. So, if you read the serious conservatives as opposed to the modern hacks, there is much to learn on the questions of liberty and even nationalizing companies.

The modern hacks you refer to have imbued the discipline of economics with a patina of high-level mathematical rigor, so that economics appears to be more a hard science than a social one. One of the points that you make in your writings is that foundational concepts like “efficiency” are so narrowly construed that models promoting unfettered capital mobility often overlook very serious inefficiencies for infrastructure.

I was trained as a traditional economist, and this is one of the greatest weaknesses: not to recognize the power relationships and the inefficiencies of the traditional system. So, for instance, take the financial and banking structures now. From a technical, economic point of view, it is inefficient to regulate them; that would be the argument of many neoclassical economists. But in the real world – taking into account the institutional power questions that are the focus of serious political economists from Adam Smith to Karl Marx – it is obvious that leaving this to the “efficient” free market may lead to trillions of dollars in losses because you’ve produced a massive recession. That is a massive inefficiency, so we need to calculate and integrate that into the analysis of “efficiency” rather than look at it as something of an occasional phenomenon when we know it’s a regular phenomenon.

Secondly, and most interestingly, it is theoretically efficient for companies to move around as they deem to be efficient and in their interest, even though the result may be to, quite simply, throw away entire cities and then have to have them rebuilt in new locations. The schools, the housing, the roads, the hospitals, the government structure in a city like Detroit, Cleveland or St. Louis are simply thrown away, and the companies move elsewhere. We need new cities, new roads, new schools, new hospitals, new city structures, with massive capital costs that are never calculated as efficient or inefficient: they’re just ignored. Much of the economics profession has an extremely narrow conception of what they call efficiency, and it’s a conception that’s disastrous for the society and the economy.

The issue of what are sometimes called “externalities,” the toll that these decisions have on others, applies to the beginning of our interview. What are your thoughts on how nuclear energy’s costs and benefits are assessed, and the role of public money?

Classical economics does recognize this, but they often don’t talk about it in as serious a way as it deserves. There would be no nuclear facility built anywhere in the world, including in the US, without some form of a government-guaranteed insurance or liability-limiting program. And both are classical interventions in the market that people shy away from mentioning, but they are there.

The implosion of the financial sector and its subsequent bailout, the recession and unconstrained capital mobility all deprive the government of funds. You argue that the US is experiencing a slow decay, a long trend toward stagnation. What do you mean by that?

This is now becoming almost the conventional wisdom, that the economy is stagnating in the sense that it neither booms, and – strangely enough – it doesn’t collapse, so that you get ever higher percentages of unemployment. The real unemployment rate is probably in the 16 percent range rather than the 9 percent range that is being discussed. That many people out of work means a massive loss of productive capacity. So, there’s a system that is, in fact, stagnating, and very few economists see an easy way out of this. Perhaps a long, long period of decay is what we’re in for. It would be well within the possibilities of liberal, left-Keynesian economics to solve this problem, but the political system is not able to deal with this, so we’re facing a political stagnation as well as economic stagnation.

Some economists contend that the stagnation tendencies of the economy can sometimes be averted or at least delayed by epoch-making innovations, like the car, which spurred a continent-wide infrastructure project. Could you foresee another innovation to push US capitalism out of this phase?

It’s impossible to predict technological change, obviously. The railroads were the most important one of the 19th century, and probably computing technologies in the 20th century. So, it’s impossible to predict whether a burst of innovation will open the way to a reinvigorated capitalism in the West. Certainly in the East, there is a massive capacity to run the capitalist system using state power, as the Chinese have demonstrated. So, it is not that the systems are impossible to develop and run – the Chinese are essentially running an export-oriented Keynesian system with an authoritarian state. So, it is possible to do that, but it isn’t possible, apparently, within the American political economy.

Krugman considers this moment a reversion to the Dark Ages in macroeconomic understanding. Do you think that the elites in thrall to the ideology of austerity are a major impediment to a political solution? In the short term, it seems they’re content with a booming stock market and unprecedented corporate profits, unworried by the long-term issues that plague the health of the overall system, like high unemployment and reduction in demand.

I think it’s more complex than that. I think that, in fact, the “general rule” in the 20th century is the picture you just painted. This would be a long discussion, but in the first quarter of the century, I think stagnation tendencies were interrupted by World War I; in the 1920’s they began to return with a vengeance, and then you had the Great Depression in the second quarter of the century, interrupted by World War II. The third quarter of the century is boosted by the aftereffects of the war, and global US dominance, for a while, until the other countries came back. Plus, there was the cold war, the Vietnam War, the Korean War and large military budgets. I see those periods as aberrations within a larger stagnating or near-stagnating long-term frame. That’s a very unconventional view, but I think what we’re returning to is a period characterized by the inability of the elites to organize a political consensus. And I think they’ve actually only been able to do that in times of crisis, in times of war and during the postwar boom. Other historians are coming to this view; economists haven’t studied it, but the historians are looking at the long patterns and seeing this overarching pattern in a cultural, as well as a political, perspective.

Today, many CEOs, and people like Alan Greenspan, are Ayn Rand devotees. In the postwar era, there was a culture that allowed elites to agree to a more stable Bretton Woods system that managed demand and curbed speculation.

We’re in agreement; the only point I’m making is that the current set of growing challenges and failing politics is much more the norm than many think if you look at the 20th century as a whole – excepting the wars, depression and the postwar boom. I think that historically, elite shortsightedness and inability to consolidate viable solutions is more like the norm. And the elites are returning to this more fragmented posture, sadly.

You’ve talked about liberalism as a failing effort to partially subdue these relentless, long-term trends of wage stagnation, income and wealth inequality, and the rise of politically powerful corporate oligopolies. So, you note that liberals congratulated themselves when the minimum wage was raised from $5 an hour to $7.25 an hour in 2007. But in general, real wages have stagnated or declined slightly since the 1970’s.

Actually, I mentioned also the decline of minimum wages. So, even with the raising of the minimum wage, which I certainly support, the larger trend has gone down so that the real minimum wage is lower today – even with the “improvement” – than it was during the Kennedy era. There are numerous progressive policies that are resisting the trend, but not altering it in a progressive or positive way. You also see that in the environment; you see that in income distribution – the top 1 percent has gone from gaining 10 percent of the country’s income to 23.5 percent.

I come out of liberalism – I ran House and Senate staffs at an earlier point in my life. But what is obvious is that the capacity of traditional liberalism to alter the most significant trends in the society is declining. So, either a new politics comes out of the pain of the economic hardship, or the decline continues.

So, how do you propose to go beyond liberalism and put forth an affirmative vision that doesn’t simply stave off the absolute worst aspects of economic pain?

First, what I think is most interesting is that people are waking up to the fact that something is profoundly wrong with the traditional model – not only the economy, but also traditional reform strategies. And a great part of that also has to do with the decline of the labor movement, which is weakening traditional liberalism enormously in all societies, but particularly in this one. In the private sector, unions account for only 6.8 percent of the labor force.

So, I think the long trend, roughly a 30-year period, will mean that the economic pain either continues without resolution, or the next several decades will be the birthing ground of new strategies and new politics – not simply more activist politics in support of traditional liberalism. While such liberal politics would be positive from my point of view, it’s not sufficient, because the power base – labor – is not there.

But I do think that what’s happening at several other levels is important. Most people have not been paying attention to what’s going on at the local level. The press doesn’t cover it, nor does it have any resources to cover it. There are literally thousands and thousands of various forms of community-building efforts. This includes 4,000 to 5,000 community development corporations and something like 13,000 worker-owned companies. There are more employees involved in this in one way or another than there are members of unions in the private sector. There are 120 million members of cooperatives; 20 percent of the American electric system is either co-op or municipal, essentially socialized. Land trusts are developing at the local level. At the state level, there are many strategies going on, like public pension funds, for example. California’s is the most well-known, but the state of Alabama is heavily using its pension funds and even investing in some forms of worker-owned companies.

The pain and anger that resulted from the financial crises have also already produced efforts to move beyond regulatory policies in the direction of institutional change. Thirty-three senators voted in 2010 for a proposal to break up large Wall Street investment banks, and, for the first time in history, legislation was approved to audit the Federal Reserve Board. Here the long-term question is obvious: even if efforts to break up big banks were to one day succeed, the history of antitrust in general, as well as that of modern banking, strongly suggests that, over time, major banks would likely find ways to regroup and reconcentrate. This ultimately implies that some form of more far-reaching change will be necessary – implicitly some form of public ownership would likely become the only serious option for dealing with the issue.

The main point is that there’s a whole series of developments which I see as the prehistory or the beginning points for an alternative vision for how you organize economic life in a more democratic, stable form. The dominant theme of what might be called, “the prehistory of the next possible Progressive Era” is changing who owns the society and who owns the wealth. Democratizing new forms of wealth is the preliminary step, hopefully, of a much larger effort to build beyond that. But it’s a long process – not simply of political populism, but of institution-building and of changing the nature of how we think of institutions and who owns them.

A critic might say that it’s mechanistic to think that just because the financial sector is set to create yet another catastrophe in the future (as the flaws of its fundamental architecture have been left unchanged), this will necessitate a national public banking system. Inertia would seem the likeliest option, especially considering the political power wielded by finance capital.

It’s interesting, because I wear these two hats as a historian and an economist. If you think of it in narrow economic terms, you’re absolutely right. You’ve had a catastrophe, and a regulatory process was established which they are likely to dominate. If you think of it historically, there was a massive outpouring of anger at these banks, and rightly so.

A new president didn’t really know what to do with it, and his advisers were taken from Wall Street. His chief economic adviser was on its payroll for years. The strategy at that stage was doomed to become solely regulatory; however, the anger levels were unprecedented, which was reflected in the votes of 33 senators. I think there are very few specialists who watch this process who do not predict massive collapse again.

As a historian, I believe what you’re going to see is increasing anger and distrust of the regulatory system. And the first step of that is a call to break up the banks. The second step will involve the places where there is no funding – no funding is going into the housing market, and small businesses are having trouble. So, either another source of funding appears, or there will be continued death. And I think the anger in those areas is also going to build up.

There are many precedents, ultimately, both at the state level and at the federal level. The Bank of North Dakota is a good example, and there are about nine other states, I believe, that are considering establishing such banks. At the federal level, there are about 140 precedents operating today that are essentially sector-specific banks. One of the most obvious ones is the Small Business Administration (SBA), which is essentially capital provision for small business, but there are many in agriculture, cooperatives, environment and energy. And there are a lot of precedents which I believe are going to expand over time and as the pain increases. For example, there is the current national Cooperative Bank.

The 1960’s tend to be glorified, but your takeaway as a historian is that the liberal achievements in civil rights, women’s rights and the environment were crucial, but stopped short of confronting economic power. You’re a native Wisconsinite. Do you see the outpouring in Madison and throughout the rest of the state as a movement that can effectively challenge the feudalistic status quo that you mention?

First, every one of those efforts you mention from the 1960’s, with the exception of the environmental movement, was essentially an effort to get into the economic and political system. For better or worse, the civil rights movement’s demand was, “Let us in” on an equal basis, and the same goes for feminism. None of those movements attempted to address the problems of the structure of power of the American corporate system. The environmental movement is the only one that touched it, briefly, and then the reaction has set in since. Martin Luther King Jr. attempted to confront this issue with the Poor People’s March, and of course was assassinated, but there is now a great deal of evidence that he knew very well that he was just playing on the edges of trying to deal with the system, that the system had to be changed. But don’t misunderstand – every one of those movements was important, and I certainly support them.

I view this current period as the most interesting period of American history bar none, because we’ve run out of options in the traditional models. I think that means we’re in for a major, major period of debate, experimentation and ferment about how to run the richest political economy in the world. This is more interesting than the American Revolution, because the principles on which the system is run are being challenged at every level, and where that comes out is by no means obvious, but there are many, many places where progressives can build, I think.

You’ve talked about the drastic decline of organized labor. Union membership hovers at around 7 percent in the private sector, 12 percent overall. You foresee this declining further still, to a lower level than that seen before the Depression. If more individuals are in some way involved in worker ownership than are members of unions in the private sector, do you see this as a way forward?

Many of those people are working in ESOPs, or employee stock ownership plans, and ESOPs have many problems we could discuss. But one of the things that is not a problem is that, in fact, they develop a notion that workers should own their own companies. To use more radical language, workers should own the means of production. This is as conventional as apple pie in America today. There are millions of workers who own their own companies – a much overlooked fact. And within the ESOP structure there is growing participation, though very flawed and faulty. Progressives have been right to challenge some of the difficulties. But for the most part, most have simply ignored the larger fact about ownership. These, however, are preliminary experiments from the point of view of a historian. From a historical perspective, they’ve reached a stage where they’re very widespread and they’re becoming more democratized and that may lay groundwork for something in the future. So, that’s one step that’s very important, as are the cooperatives and community development corporations. They’re all demonstrating new models – many flawed as they develop – but that’s only one stage.

At the city and state level, there is currently a battle for control, but some very interesting experimentation is also going on because the pain is so high, so people are willing to try land ownership under public control; cities are setting up public enterprises to turn methane from garbage collection into electricity. There are cities in Texas owning hotels, partly because of the fiscal crisis. So, you’re seeing very interesting developments at the city and state level that can serve as possibilities for the future.

How do you connect the local with the macroscopic? Do you see a way for the experimentation in local communities to provide insight and power to tackle issues like international trade or the decline of US manufacturing?

I think what’s possible – but not inevitable – is a left-right populist reaction on the trade front. I think several domestic manufacturers will be involved, and the Chinese will force the issue. Over the next decade, I think we could see what’s called, in conventional economic, terms protectionism. The left and the right are going to demand protection.

That doesn’t mean you solve the economic problems. As I’ve said, I think there is likely to be substantial stagnation because you can’t get a coherent policy through the political system. In fact, our political system is doing just the opposite: it’s cutting spending and undercutting serious economics. So, I think we’re going to see a lot more stagnation.

I think that will force even more painful experimentation at the local and state levels, and it’s already happening, but hasn’t been reported on and hasn’t been studied by scholars. The programs that ultimately became the New Deal were often developed at the state and local level first in principle, and then became the basis for national policy. In my judgment, efforts based on the principle of democratizing ownership are likely in health care – as “single payer” – in banking and in other sectors. Indeed, we have already successfully nationalized – jointly, with partial worker-ownership – two major auto producers, only, this time around, to sell them once they became profitable! What may happen with high-speed rail production is an open question, since we have literally no domestic producers. In a longer-term perspective, I think the buildup of new local models may begin to build understanding of principles of importance at higher levels. At this stage, the hopeful prospect for the long haul, and the centerpiece of real-world experimentation, involves radical decentralization, democratizing wealth ownership and the political power that goes with it.

At the same time, it’s important, quite simply, to keep in mind that Rome declined. It’s possible that the decay will continue and there will be violence and right-wing takeover. There are no sure answers. I believe the appropriate progressive strategy is one that both continues traditional efforts to the extent feasible, but also forcefully attempts to develop and build upon the positive efforts that are stirring at the grassroots level throughout the country, if you dig a little below the surface. This is where we are developing principles that could ultimately inform a new politics.

I must emphasize that, as a historian, I see these developments in 30-year swatches. The timing for the near-term is to hold back as much of the pain as you can, while at the same time developing for the future. I don’t see easy answers, politically, and it’s naive to expect them. The best you can expect in near-term politics is trying to resist the worst attacks on traditional efforts.

And let me say that this also applies to my home state of Wisconsin. What’s ignored about its great recent popular uprising is that almost all of it was defensive, not “progressive,” in the sense that it tried to hold the line against further cuts, rather than to advance new demands. Its main demand was a negative one: “Don’t hurt us anymore.” A new and powerful forward-moving thrust is so far not evident in these efforts, much as I welcome and applaud them and hope they can help move toward achieving forward-moving power.

In my judgment, however, the elements of what could one day become a positive, new direction just possibly are being quietly developed at the state and local levels institutionally. They might also one day provide the basis for political and programmatic demands … but that would be a later stage. They are not political at this stage; they’re institutional, but they are beginning to develop the content of what could become critical elements of the next politics.

You advocate for a kind of regional integration, particularly economically. Do you see any conflict between a push toward regionalism and the problem you described in “America Beyond Capitalism”: “Increasingly the largely white suburban middle class is simply no longer willing to pay for a progressive agenda it believes will mainly benefit the black and Hispanic poor?” Does federalism in some way mitigate this tendency?

The term “regionalism” often refers to a metropolitan region; that’s not what I’m talking about. I’m skeptical about metropolitan regionalism. What I have suggested is that the population of the country is over 300 million and projected to grow to at least 500 million by mid-century. It’s also continental in scale. Roughly speaking, you can drop Germany into Oklahoma, or France into Montana. Those are very small countries compared with ours. It is all but impossible to run such a system from Washington in a democratic manner, even under the best of circumstances. Decentralization is inevitable if there is to be a successful system. Most states are too small; the nation is too big; the region is the logical direction for a solution. There’s a whole literature dedicated to this that is likely, I believe, to become important as decisionmaking at the center continues to fail, and as population increases.

I think the blockages in Washington are so intense that ultimately, over the long haul, a major reorganization of our national political structure may occur. We are operating with a constitutional system devised in the era of the plow and mule and a population of a mere four million residents largely scattered along the Eastern seaboard. Major reform of this system may ultimately occur in a positive way, as certain large states like California take matters into their own hands as the levels of pain keep increasing due to the failings in Washington. There are several scenarios of ultimately decentralizing real power constitutionally that are possible. On the other hand, continued failure and decay is also possible – i.e. no solution to our problems, period. But the scenario that is least likely, I believe, is successful management without major change in systemic patterns.

A good question in this society is whether long-term regional or other decentralization would undermine civil rights. The answer is by no means obvious. It used to be thought that Washington, DC was the savior of civil rights. But it turns out that the period for which this was true for the most part is a very, very brief moment of postwar history. By and large, the record of the Supreme Court has been extremely conservative throughout the century – with the brief aberration of the Warren court. If you look closely at its progressive “moment,” what you’ll find is that the FDR [Franklin Delano Roosevelt] appointees who briefly dominated that court system were largely the implicit product of New Deal politics – a very unusual progressive political moment that must be traced inevitably to the Great Depression, which created the New Deal. It’s obviously more complicated than this, but in general, the progressive 20th-century moment of Supreme Court history is in many ways best understood as a secondary reflection of the New Deal values. In general, the norm is more like the Roberts court. Bottom line: Washington is not necessarily the place to look for court decisions to solve the civil rights problem in general. In future, Washington could make matters worse.

So, taking all of this into consideration, if, at present, Arizona’s state government began to assert greater economic and political independence, would you find this problematic?

Don’t misunderstand – I think that whatever can be held together by national norms should be maintained. The Europeans have the European Court of Human Rights, which helps establish a baseline. Many of the progressive states in the US go well beyond the national norm: Vermont is about to pass a single-payer health care system, and it allows gay marriage. It is a complex and messy business, but I think substantial regional self-determination is ultimately likely to be the only answer for a democratic system, because the continent is inevitably going to be run by corporate elites. The only place you can have meaningful democracy is at a more local and regional level.

Finally, you talk about this current moment with a level of optimism that’s lacking among many progressive activists and intellectuals. What do you believe engaged citizens should be thinking about and doing to bring out the changes necessary for a more just society?

I think the crisis is very severe, and I wouldn’t want to minimize the pain that people are experiencing. As a historian, however, I would note that if you were to suggest something positive about Egypt’s future four months ago, you would have been laughed out of court.

And indeed, there’s an explosion throughout the Middle East; something was stirring below the ground, something that is likely to take decades to develop from its first explosion.

As I’ve mentioned, I’m from Wisconsin. In the 1950’s, Joe McCarthy, the reactionary Republican senator from Wisconsin, dominated everything. In the state, you couldn’t see anything happening, but in the 1960’s, Wisconsin exploded, which was completely unpredicted.

You can find similar patterns throughout history. The feminist movement was unpredicted. The environmental movement was unpredicted. The explosion of the civil rights movement was generally thought likely, but it was unpredicted when it happened. The Populists, the Progressives, the American Revolution – all unpredicted. But such explosive change is as common as grass, historically.

That doesn’t mean it always happens, but I see developments that are very encouraging at the grassroots level, and I think of them in historical terms instead of what is going to happen in tomorrow’s election. And in that sense, many of the elements for building a movement are there. One is great pain; two is a reassessment of the failure of traditional strategies; three is experimentation with new models and new policies; and four is younger people being totally turned off by the process.

One poll I saw recently indicated that people under 30 find themselves evenly divided, essentially, over whether capitalism or socialism is a better system. This tells you very little about capitalism or socialism, but a great deal about the hunger for something fresh and new. We’re seeing that with these Cleveland experiments – they are exciting to people. They know that something different is being talked about, like changing who owns wealth. Those ingredients – together, too, with a reinvigoration of traditional progressive strategies – do not predict the inevitability of major change, but they are very important elements that could, over time, very well contribute to the next American explosion. Working in that direction creates positive things on the ground and lays the foundation for something that could well become very important.

 

POLLS


 

The Tea Party And Social Security

A new poll from Missouri shows a huge majority – 78 percent – opposed any cuts in social security benefits. Not far behind, 59 percent of the Tea Party voters are opposed. In the debt battle ahead, it seems clear to me that the GOP hasn’t even come close to sealing the deal on spending. But there is a glimmer of hope in the data:

There is strong bipartisan support among Missouri voters for lifting the cap to impose Social Security taxes on all wages above $106,800 and requiring both employees and employers to pay (68 percent). This was supported by large majorities of Republicans (62 percent), Independents (70 percent), and Tea Party supporters (61 percent). By a margin of 59 percent to 18 percent voters say they would be more likely to vote for a Senate candidate who supports requiring employees and employers to pay Social Security taxes on all wages above $106,800.

Yes, more taxes for the successful is far more popular than any cuts to actual benefits.

 

AND IN OTHER NEWS…


Sarah Palin: Paul Revere Warned The British

Well. Hilarity ensued on Twitter as more great moments in Palin “history” was imagined by Tweets:

TLW3 Tom

The attack by the Germans on Pearl Harbor especially angered women who appreciated fine jewelry.

shannynmoore Shannyn Moore

Row vs Wade is a decision we all have to make when crossing a creek or river.

GottaLaff GottaLaff

Marilyn was way ahead of her time with that Monroe Doctrine of hers. Go feminists!

 

GottaLaff GottaLaff

I got lost trying to find Gettysburg Address. Should’ve used GPS.

 

pandagon Jesse Taylor

Paul Revere found a mosquito in amber, and from that, brought dinosaurs to the Pilgrims.

 

DaveKnowsPDX Dave Knows PDX

RT @brx0: Paul Revere rode to announce the coming of British Petroleum, bringing prosperity and jobs for all Real Americans

 

DarthWeiner75 1 Nanoski of many

Then Eggs Benedict said “I regret that I got caught being treasonous.”

 

progressteve or is it Jim?

The allies won WWI by defeating kaiser permanente

 

WalkersCombover Walkers Combover

John Brown raided Harper’s Bazaar to protect our right to own guns.

 

phive0phor phive

One of the most tragic moments in U.S. History was the rioting in L.A. after the Rodney Dangerfield beating.

 

jumpthesnark David

Mortimer Snerd was blacklisted after he refused to name names at the Charlie McCarthy hearings.

 

MaryRocco Mary Rocco

#PalinHistory The Statute of Liberty is a warning from the French that we should reject 8-week paid vacations & universal healthcare.

 

progressteve or is it Jim?

Win. RT @G0vSWalker: Union workers don’t work as hard as real, folksy Americans. That’s why the Union Army lost the Civil War.

 

GottaLaff GottaLaff

The Great Depression was post partum syndrome

 

BrnEyeSuss BrnEyeSuss

RT @shelisrael: RT @Marti_L: The Ho Chi Min Trail was used to transport prostitutes in Vietnam

Tons more!

 

TAKE ACTION

 

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E-mail: Phil Boyce, Program Director [email protected]


National Newspapers

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We can’t always respond, but we look at everything.

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QUOTE OF THE DAY:

There are two kinds of light – the glow that illuminates, and the glare that obscures. ~James Thurber

 

Written by Chernynkaya

I am an artist and have lived in Los Angeles all of my life, except for a brief hippie period when I lived in SF. I am currently (semi-unwillingly) retired, but have had several careers.

36 Responses so far.

Click here to leave a comment
  1. bito says:

    I just replied to KQ about manufacturing in the the US and google has this as their #1 article. “U.S. Manufacturing: Output vs. Jobs Since 1975” and in the very short post she has this to say:

    This week, Veronique de Rugy examines changes in employment and productivity in the American manufacturing sector. Since 1975, manufacturing output has more than doubled, while employment in the sector has decreased by 31%. While these American job losses are indeed sobering, they are not an indication of declining U.S. competitiveness. In fact, these statistics reveal that the average American manufacturer is over three times more productive today than they were in 1975 – a sure sign of economic progress.

    The true cause of dwindling American competitiveness is a tax code that puts domestic firms at a clear disadvantage – not a lack of skill or innovation on the part of the American worker.

    Veronique de Rugy explains why the price of our tax code is hurting American jobs at Reason Online.

    OK, anyone one familiar with “Reason”? A libertarian site, backed by, among others, by the Koch brothers?

    Well, you can all explore her “Reason” but I am curious why this is the first article on google when searching “us manufacturing out put”?

    I wonder if I had a few billion if I could a post up to #1 on search engine such as google? Just wondering.
    A portion of her bio:

    Veronique de Rugy is a senior research fellow at the Mercatus Center. She was previously a resident fellow at the American Enterprise Institute, a policy analyst at the Cato Institute, and a research fellow at the Atlas Economic Research Foundation. Her research interests include the federal budget, homeland security, taxation, tax competition, and financial privacy issues.

    She writes a column for Reason magazine and is a regular contributor to The American, AEI’s online magazine. She also blogs at The Corner at National Review Online and at Big Government.

  2. Dbos says:

    Wish I were younger and healthy, Organizing is going to be easy in a few years, progressives programs will come back,just as Gar alfrovitz said.

  3. KQuark says:

    BTW there are three factors that contribute to our inability to compete with China for labor intensive manufacturing jobs.

    Labor, Labor, Labor.

    Taxes, tariffs, currency, cost of goods and even healthcare costs have little to do with our ability to compete. We actually have much lower tax rates than China.

    Anyone who tells you different is lying.

    • bito says:

      KQ, a word on manufacturing and their jobs. The actual manufacturing in the US hasn’t shrunk nearly as bad as have the jobs due to technology.
      Two anecdotes. A relative of mine, who was the president of a very large local of the Steel Workers, related to me that they could produce 6 times the tonnage with a 3rd of the workers needed to produce the same amount. I believed him, his position was to keep as many people employed as possible, yet technology was an enemy.
      Another family member was a machinist in a mid-sized machine shop and one day they brought in a few computerized machines with laser checking incorporated, no more need for humans with their mics and they produced more cheaper. No bathroom/lunch breaks, no vacations, no Union grievances no shop steward.

      Your point on “labor intensive” ( shoes, textiles….) is well taken, but even there, how many people on the site actually buy and wear RedWing shoes (Union Made in the USA)? Most people buy the cheaper “made in China” variety.

      U.S. Manufacturing: More Output with Fewer Workers

      Many of you protectionists hyperventilate about America’s alleged loss of manufacturing prowess. Are you aware that your worries on this front arise solely because you confuse manufacturing jobs with manufacturing output? Manufacturing jobs, as a percentage of all jobs in America, are indeed declining (see top chart above). And you hysterically interpret this fact as somehow proving that foreign producers are undermining America’s economy.But are you aware that America’s manufacturing output today is near its all-time high (see middle chart above)? Are you aware also that America is by far the world’s largest exporter of manufactured goods?

      Are you aware that the reason manufacturing jobs are declining as a share of all jobs has far more to do with increased productivity of American industry — that is, increased strength of American industry — than it has to do with increased foreign trade (see bottom chart above)? Manufacturing jobs are being lost to technology and improved efficiencies. Do you think that this trend is undesirable?

      BTW, the largest retailer in the US is Wal-Mart, they are also the largest single importer of manufactured products from China.

      jobs

      output

  4. Sabreen60 says:

    Here’s an ad I ran across and it’s not even from the left. I’d say Ryan et al have more problems than they are aware. It’s the second video. Athough the first video has Ryan running away from the cameras.

    http://swampland.time.com/2011/06/03/paul-ryans-ayn-rand-problem/


    • bito says:

      Very good, Sabreen!
      A some more on the subject:

      Religious Leaders: GOP’s ‘Ayn Rand’ Budget Targets Poor, Goes Against Religious Values

      The sky is falling on poor people in this country. The sky is falling. This time it really is. In the past, when we’ve done deficit reduction — and we’ve done it before — we’ve done poverty reduction at the same time. You can do both together. And every previous attempt there has been a bipartisan agreement to a given, a principle, that poor and low income people are not the ones to make hurt more when you’re making tough decisions. … They don’t bear the brunt of our fiscal irresponsibility because they didn’t cause it. We did not get into fiscal trouble because of poor people. … The poor didn’t cause this. Let’s not make them pay for it.


      What we’re saying in the faith community, across the spectrum, is that a nation is judged — our Bible says — by how we treat the poorest and most vulnerable. Period. That’s what God says to us. That’s God’s instruction to us. To be faithful to God, we have to protect poor people.

    • Chernynkaya says:

      Sabreen that video need to go viral! I’ll do my part.

  5. ADONAI says:

    The thing about FOX News is they hire all these people who are actually smart, like Gretchen Carlson(I know, but she is educated)

    And they just play dumb for their audience. That’s why I feel bad for FOX News viewers. They’re treated like children and they aren’t. Really it’s a problem with all cable news. They either baby you or talk down to you.

    • KillgoreTrout says:

      Adonai, as you probably know already, there is a big difference between smart and wise. The sheer number of smart people who do stupid things is immeasurable. Like letting greed and vanity get the best of them.

    • KQuark says:

      I use to like Gretchen on court TV. It goes to show how environment changes people. She took a hard right turn but you never know she could have been like that all along.

  6. KQuark says:

    It irks me to no end that the MSM fails to recognize the Medicare cost savings in the ACA and then say Dems are for death panels. Just because the Dems are not going to blow up Medicare unnecessarily does not mean they don’t have a plan to cut costs. Most of all Dems are attacking one of the root causes of rising costs the fee-for-service reimbursement system.

    That fact is if the cost savings in the ACA are not blocked by the GOP and Dems just raise that payroll tax ceiling Medicare can pass that magic 90% solvency number for decades.

  7. Sabreen60 says:

    Well it does seem as though the Democrats are working setting up this interactive map. You can click on individual areas of the country to see the effects of Ryan’s Kill Medicare plan. I think this should go viral.

    http://democrats.energycommerce.house.gov/index.php?q=page/district-by-district-impact-of-republican-medicare-plan-and-medicaid-cuts

    • Chernynkaya says:

      Sabreen--I saw that on Twitter and it is awesome! Thanks for posting. I think we should all post it wherever we go online too.

      • KQuark says:

        I think I’m going to put it on my FB right now.

        • Chernynkaya says:

          Good man, KQ. Is it hard to start a FB page? I’m feeling intimidated. And how does one get people to go to your page-is it like Twitter that way? I mean, on Twitter, you re-Tweet to get noticed, but in FB?

          • KQuark says:

            Actually it was easier than Twitter for me. The only thing I don’t like is how they do photos. Flickr is much easier. The only “hard” part so far is getting a friend request from someone I just can’t remember. Yikes!

            • KQuark says:

              Don’t be so modest, your Gravatar would be perfect.

              I mean I used the Avatar I created on Evolver that makes me look 15 years younger.

            • Chernynkaya says:

              Thanks. Maybe this weekend I’ll tackle it. (I need a new photo--gravatar makes my look too young.)

  8. agrippa says:

    “yellow journalism”
    http://library.thinkquest.org/C0111500/spanamer/yellow.htm

    Yellow journalism has always been with us. And it is what passes for what is called journalism today.
    News is considered, by broadcasters, to be a form of entertainment; and news papers have far fewer reporters covering the “news” at all levels, local, state and national.

    • Chernynkaya says:

      Agrippa, I’m so glad you mentioned that! I think of it occasionally--about Hearst and how he got us into the Spanish American war, for god’s sake.

  9. agrippa says:

    Fox News is in the propaganda business; propaganda in service of a political agenda.

    I do think that the USA is in a period of decay; decay toward stagnation. I think that where we are heading: economic stagnatio of no prosperity and no depression.
    Much of that is due to the decline of manufacturing, and other sectors are not strong enough replace maufacturing.

    There are solutions. But the political will is lacking. Political stagnation.

  10. escribacat says:

    So they know who was behind the Anthony Weiner tweet setup yet rags like HP are still publishing articles about how he is one of the top seven tweet scandals and how his “media strategy has failed.”

    I tried to post your smoking gun link on HP but it went pending and poof.

  11. whatsthatsound says:

    That Sarah Palin clip is unreal! Paul Revere, riding through town, sendin’ those “shots and bells” (wtf IS she talking about?), to warn the British that we were going to be free.

    She’s like a Goddess of Stupidity!

    Here’s my contribution to History with Sarah

    The French Revolution was caused when someone left the cake out in the rain. Marie Antoinette said, “Let them eat cake”, not realizing the cake had become soggy. The peasants found the idea of eating soggy cake revolting, so they revolted. Thus, this period was called the Rain of Terror.

    • bito says:

      This is my scary take on the Palin clips on her understanding of history. In both the clips she gives these “interpretations” AFTER taking the tour and lecture given by a Park Service Ranger, and then this is what she heard/learned? At most sites there are pamphlets to read and some have interactive presentations. All that and those clips show what she heard/learned.

      OK, now flash to a scene with her in the Oval Office taking her PDB (presidential daily briefing) with her NSA staff. She would hear typhoon in the Philippines and a cruise missile assault in Libya and she would order carpet bombing the Philippines and foreign aid Louisville.

      That’s the really frightening part for me, her lack of comprehension.

      Now don’t get me started on the media.

      • Chernynkaya says:

        I honestly don’t think she even heard the Ranger or even looked at the pamphlets. She was totally in her own world, thinking only about how she looked, who was following her around, if her hair was OK, what she was gonna have for lunch, what the press was gonna say about her later. She’s exactly like the dog in this cartoon
        [img]http://t0.gstatic.com/images?q=tbn:ANd9GcRSJvlHnaKSiuaNfErAgxyd3bgUcLtgwP69MpGYM7q6FEmaEZdcgQ[/img]

        She has zero intellectual curiosity and is really lazy.

    • Chernynkaya says:

      Whts-- that is priceless! I love the ridicule she’s getting. What else can one do in the face of glorified ignorance. To her followers, her stupidity is a huge part of what they love.

    • escribacat says:

      That clip and other Sarah blatherings remind me of a woman I used to work for. We worked in a high tech arena and she wasn’t a techie. However, she always tried to bullshit her way through technical conversations by throwing out various techie terms she had picked up along the way. I knew just enough about the stuff to know that she was talking nonsense. The customers would listen politely but I always wondered if anyone else realized it was gibberish.

      • KillgoreTrout says:

        ecat, I think I’ve posted this before, but it bears reposting;


        Absurdly humorous, and scary at the same time.

        • escribacat says:

          The blind leading the blind, Killgore. It makes perfect sense that those who admire Palin are her fellow clueless citizens. I almost feel guilty making fun of these ignoramuses.

          • KillgoreTrout says:

            Yeah, it’s sort of like shooting fish in a barrel. But, I sometimes think they deserve it for being so clueless in the midst of “the information age.” Cognitive misers.

      • Chernynkaya says:

        E;cat that’s what it reminded me of too. More like when I was asked in HS to write an essay in class on something I hadn’t studied, and I rambled on hoping something would stick.


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