The Definitive Guide to Racism, Sexism, and Homophobia in the 2012 Republican Primaries (So Far)

From AlterNet, by Sally Kohn

“There is a reflecting pool between the Washington Monument and the Lincoln Memorial in our nation’s capital. Stretched out between the memories of two presidents, the water reminds us that politics are merely a reflection of American society, for better or worse. The best of our society was on display 48 years ago when hundreds of thousands of Americans stood in scenic unity along the reflecting pool in support of civil rights. Today, the 2012 presidential elections reflect a nation still plagued by bias and inequality. Troubled and ugly waters indeed.

The following is a guide to use when you consider casting a vote for one of the 2012 Republican presidential candidates. You may be among the Americans who have lost faith in Obama or the Democratic Party and pondering a step to the right. Faulty as the Democrats may be, read this guide and remember that liberals still believe abolishing slavery was a good idea and that women should not be confined to the kitchen—which is not something you can say about all of the Republican contenders.

Rick Santorum, Former Senator from Pennsylvania

In 2003, then-Sen. Santorum conflated being gay with bigamy, incest and having sex with farm animals, then said, “That’s not to pick on homosexuality.” Really?

Later, Sen. Santorum actually copped to his prejudices, but spun them as a positive trait. “You can say I’m a hater, but I would argue I’m a lover,” Santorum said. “I’m a lover of traditional families and of the right of children to have a mother and father…. I would argue that the future of America hangs in the balance.” Sounds like a hater to me.

In 2008, Santorum tried to manufacture liberal angst about then-candidate Barack Obama, saying Democrats feared Obama “may go to Indonesia and bow to more Muslims.” That’s not to pick on Muslims, right? Still, the one thing I can say about Santorum is at least he’s openly and consistently bigoted. There’s something oddly old fashioned about that.

Michele Bachmann, Representative from Minnesota

Bachmann signed the infamous “black kids were better off under slavery” pledge and ushered in a real high point in the campaign season as pundits struggled in-artfully to talk about the nation’s ugly racial history. Then Bachmann demeaned President Obama’s economic policies by alleging he’s tying the U.S. economy to Zimbabwe.

But Bachmann is not all rhetoric—she takes it to the streets. In 2006, then State Sen. Bachmann hid behind a bush to spy on a gay rights rally, crouching with her husband Marcus who runs a cure-away-the-gay reparative therapy organization of which she is “extremely proud.”

Speaking of her husband, Bachmann’s gender does not make her a feminist. She once told wives “to be submissive to your husbands” like she was when Marcus told her to go to grad school and run for Congress. “I was going to be faithful to what I felt God was calling me to do through my husband,” Bachmann said.

Herman Cain, Former CEO of Godfather’s Pizza

I hate to suggest that an otherwise ridiculously under-qualified black conservative is only a contender for the Republican nod because mildly self-aware conservative voters think they can cover up their profound racial resentment toward the current black president by endorsing Cain. So I won’t suggest it.

Rick Perry, Governor of Texas

Gov. Perry has some extreme beliefs. “Social Security is a Ponzi scheme,” and “Medicare needs to be changed or potentially abolished” are two that have gotten lots of attention since he joined the race. But it’s his constant embrace of “states’ rights” that has me most worried, given that “state’s rights” was a pro-segregation refrain when white southerners wanted to preserve the right to own slaves. And taking “state’s rights” to a whole new creepy level, Perry has actually endorsed the idea of Texas seceding to become a separate nation. Maybe the Confederate flag can be re-appropriated?

There’s more. Activists and bloggers are now digging into Perry’s relationship with David Barton, a pseudo-historian and close ally of Glenn Beck who has argued that the California wildfires and Hurricane Katrina were “God’s punishment for tolerating gays.” Barton also argued that Martin Luther King, Jr., doesn’t deserve credit for civil rights because “only majorities can expand political rights“—in other words, Barton thinks white people in power should get all the credit. If Obama got flack for his ties to Jeremiah Wright, Perry should be scrutinized for his embrace of Barton and his extremism.

Ron Paul, Representative from Texas

The libertarian member of Congress has said plainly that he would have voted against the 1964 Civil Rights Act. And a newsletter Paul published in 1992 says the Los Angeles riots only stopped when blacks went to “pick up their welfare checks.” Another Paul newsletter alleged that black children “are trained to hate whites, to believe that white oppression is responsible for all black ills, to ‘fight the power,’ to steal and loot as much money from the white enemy as possible.” Paul has denied authoring these newsletters, though they were published by him and called “The Ron Paul Political Report.” Perhaps for Paul—or whoever he let write under his name—libertarianism means government shouldn’t stop people like him from being racist.

Mitt Romney, Former Governor of Massachusetts

In April of this year, Romney said conservatives have to hang something called the Obama Misery Index “around [the President’s] neck.” In the same speech, Romney tried to step it back, saying “We’re going to hang him—uh, so to speak, metaphorically—with, uh, with, uh—you have to be careful these days, I’ve learned that.” It was either an idiotic choice of metaphors or a revealing slip of the noose—I mean tongue. In the past, Romney has used the racial epithet “tar baby” to demean government programs.

And if Obama has Jeremiah Wright and Rick Perry has David Barton, some wonder whether Romney should have to answer for the racist history of the Mormon Church, which until 1978 did not allow blacks to become priests or lead certain ordinances. In 1963, Joseph Smith, the founder of Mormonism, was quoted in Life Magazine defending his religion’s racism, saying, “Darkies are wonderful people.”

Meanwhile, Mitt Romney was for marriage equality before he was against it. Now, to prove his homophobic bona fides, he’s signed an anti-gay marriage pledge by the National Organization for Marriage. Santorum and Bachmann have also signed.

Jon Huntsman, Former Governor of Utah and Ambassador to China

Last but not least, there’s Jon Huntsman. But the fact is he is far too knowledgeable, experienced and, above all, reasonable to have a shot at winning with the increasingly fringe Republican base. Huntsman has far too few overt or even veiled racist, sexist or homophobic rants under his belt to gain popularity with today’s influential right wing voters.

Oh, and I’ve skipped Newt Gingrich, because he’s a joke even to Republicans.

+++

Whether it’s a reflection of actual values or of the values that GOP candidates feel they must project, all the people above oppose abortion rights. All except Ron Paul favor amending the United States Constitution to prevent two men from getting married. All have engaged in feverish anti-immigrant rhetoric and complained that the Obama administration, which has deported more Americans than the Republican president before him, isn’t doing enough to persecute immigrants.

Republican voters say that jobs are their number one concern. Do they think aborted fetuses and gay couples are stealing their jobs along with blacks and immigrants? How else can we explain such persistent pandering to manufactured culture wars, even in the midst of very real and ominous economic disaster that is affecting all of us?

A friend told me that the reflecting pool on the Mall rippled during last week’s earthquake. Unlike Michele Bachmann, I don’t think it was a message from ananti-government God, but I do think the symbolism is stunning in the context of these candidates—all of whom have a shot at becoming the next president. The ripples in the reflecting pool were not ripples of hope and change that echoed from 1963 all the way to the election of Barack Obama. Rather, they were ripples of fear emanating from the GOP candidates and targeting our nation’s most vulnerable communities.

The recent earthquake also cracked the Washington Monument. It was as though, already destabilized by centuries of racism and bias, the tremors of politics unearthed the structural cracks. If we brush off hateful views as political theater, we face a deepening of the cracks that threaten to fracture our entire political system and society.

Then again, as Mitt Romney said, one has to be careful with metaphors.”

Sally Kohn, Chief Agitation Officer of the Movement Vision Lab, is a community organizer, writer and political commentator. You can read more about her work at:http://movementvision.org.

emphasis mine

see:http://www.alternet.org/story/152244/the_definitive_guide_to_racism%2C_sexism%2C_and_homophobia_in_the_2012_republican_primaries_%28so_far%29?page=entire

Give Karl Marx a Chance to Save the World Economy: George Magnus

Karl Marx and the World Economy

By George Magnus

Policy makers struggling to understand the barrage of financial panics, protests and other ills afflicting the world would do well to study the works of a long-dead economist: Karl Marx. The sooner they recognize we’re facing a once-in-a-lifetime crisis of capitalism, the better equipped they will be to manage a way out of it.

The spirit of Marx, who is buried in a cemetery close to where I live in north London, has risen from the grave amid the financial crisis and subsequent economic slump. The wily philosopher’s analysis of capitalism had a lot of flaws, but today’s global economy bears some uncanny resemblances to the conditions he foresaw.

Consider, for example, Marx’s prediction of how the inherent conflict between capital and labor would manifest itself. As he wrote in “Das Kapital,” companies’ pursuit of profits and productivity would naturally lead them to need fewer and fewer workers, creating an “industrial reserve army” of the poor and unemployed: “Accumulation of wealth at one pole is, therefore, at the same time accumulation of misery.”

The process he describes is visible throughout the developed world, particularly in the U.S. Companies’ efforts to cut costs and avoid hiring have boosted U.S. corporate profits as a share of total economic output to the highest level in more than six decades, while the unemployment rate stands at 9.1 percent and real wages are stagnant.

U.S. income inequality, meanwhile, is by some measures close to its highest level since the 1920s. Before 2008, the income disparity was obscured by factors such as easy credit, which allowed poor households to enjoy a more affluent lifestyle. Now the problem is coming home to roost.

Over-Production Paradox

Marx also pointed out the paradox of over-production and under-consumption: The more people are relegated to poverty, the less they will be able to consume all the goods and services companies produce. When one company cuts costs to boost earnings, it’s smart, but when they all do, they undermine the income formation and effective demand on which they rely for revenues and profits.

This problem, too, is evident in today’s developed world. We have a substantial capacity to produce, but in the middle- and lower-income cohorts, we find widespread financial insecurity and low consumption rates. The result is visible in the U.S., where new housing construction and automobile sales remain about 75% and 30% below their 2006 peaks, respectively.

As Marx put it in Kapital: “The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses.”

Addressing the Crisis

So how do we address this crisis? To put Marx’s spirit back in the box, policy makers have to place jobs at the top of the economic agenda, and consider other unorthodox measures. The crisis isn’t temporary, and it certainly won’t be cured by the ideological passion for government austerity.

Here are five major planks of a strategy whose time, sadly, has not yet come.

First, we have to sustain aggregate demand and income growth, or else we could fall into a debt trap along with serious social consequences. Governments that don’t face an imminent debt crisis — including the U.S., Germany and the U.K. — must make employment creation the litmus test of policy. In the U.S., the employment-to-population ratio is now as low as in the 1980s. Measures of underemployment almost everywhere are at record highs. Cutting employer payroll taxes and creating fiscal incentives to encourage companies to hire people and invest would do for a start.

Lighten the Burden

Second, to lighten the household debt burden, new steps should allow eligible households to restructure mortgage debt, or swap some debt forgiveness for future payments to lenders out of any home price appreciation.

Third, to improve the functionality of the credit system, well-capitalized and well-structured banks should be allowed some temporary capital adequacy relief to try to get new credit flowing to small companies, especially. Governments and central banks could engage in direct spending on or indirect financing of national investment or infrastructure programs.

Fourth, to ease the sovereign debt burden in the euro zone, European creditors have to extend the lower interest rates and longer payment terms recently proposed for Greece. If jointly guaranteed euro bonds are a bridge too far, Germany has to champion an urgent recapitalization of banks to help absorb inevitable losses through a vastly enlarged European Financial Stability Facility — a sine qua non to solve the bond market crisis at least.

Build Defenses

Fifth, to build defenses against the risk of falling into deflation and stagnation, central banks should look beyond bond- buying programs, and instead target a growth rate of nominal economic output. This would allow a temporary period of moderately higher inflation that could push inflation-adjusted interest rates well below zero and facilitate a lowering of debt burdens.

We can’t know how these proposals might work out, or what their unintended consequences might be. But the policy status quo isn’t acceptable, either. It could turn the U.S. into a more unstable version of Japan, and fracture the euro zone with unknowable political consequences. By 2013, the crisis of Western capitalism could easily spill over to China, but that’s another subject.”

(George Magnus is senior economic adviser at UBS and author of “Uprising: Will Emerging Markets Shape or Shake the World Economy?” The opinions expressed are his own.)

To contact the Bloomberg View editorial board: view@bloomberg.net.

emphasis mine

see:http://www.bloomberg.com/news/2011-08-29/give-marx-a-chance-to-save-the-world-economy-commentary-by-george-magnus.html

Understand the Right’s Attack on Social Security

From Alternet, by: Dave Johnson, Campaign for America’s Future

“You hear over and over that Social Security is “in trouble” or that we “can’t afford it.” This is as far from true as can be, and the idea behind this is to convince people to just give up on defending the program and let the haters have their way. The people who hate Social Security the most are the ones who say they want to make these changes to “save” it.

Well Bernie Sanders loves the program and has introduced a bill that actually will save it.

The Haters

Conservatives have hated Social Security from the start, because it is a program that demonstrates once and for all the value of progressive governance. Social Security is as clear an example of We, the People watching out for and taking care of each other as there ever was. It has made a huge difference n the lives of older people, and their/our families. It works, is cost-effective and requires minimal overhead to keep it going. So they hate it.

A very recent example of conservative hatred for Social Security came from Senator Marco Rubio of Florida, who said, that We, the People helping each other makes us weak,

“These programs actually weakened us as a people. … All of a sudden, for an increasing number of people in our nation, it was no longer necessary to worry about saving for security because that was the government’s job.”

Substitute the words “We, the People” or “each other” for “government” in Rubio’s statement and you’ll get the point: people don’t have to worry so much because we’re taking care of each other. He says that makes us weak. Yikes!

Decades Of Attacks

For decades conservatives who hate Social Security have been using every trick in the book to turn people against the program. Over and over you hear, “It’s a Ponzi scheme.” “It won’t be there for you.” This latest attack is that it “makes us weak.” And of course the old classic: “Social Security is broke.”

The “it’s going broke” and “won’t be there for you” attack strategy goes back to a 1983 Cato Institute Journal document, “Achieving a Leninist Strategy” by Stuart Butler of Cato and Peter Germanis of the Heritage FoundationThe document is still available at Cato, and select quotes are available at Plotting Privatization? from Z Magazine. If you have time it is worth reading the entire document (in particular the section “Weakening the Opposition”) to more fully understand the strategy that has been unfolding in the years since. But if you can’t, the following quotes give you an idea:

“Lenin recognized that fundamental change is contingent upon … its success in isolating and weakening its opponents. … we would do well to draw a few lessons from the Leninist strategy.”

” construct … a coalition that will … reap benefits from the IRA-based private system … but also the banks, insurance companies, and other institutions that will gain from providing such plans to the public.”

“The first element consists of a campaign to achieve small legislative changes that embellish the present IRA system, making it in practice a small-scale private Social Security system.

“The second main element … involves what one might crudely call guerrilla warfare against both the current Social Security system and the coalition that supports it.”

“The banking industry and other business groups that can benefit from expanded IRAs …” “… the strategy must be to propose moving to a private Social Security system in such a way as to … neutralize … the coalition that supports the existing system.”

“The next Social Security crisis may be further away than many people believe. … it could be many years before the conditions are such that a radical reform of Social Security is possible. But then, as Lenin well knew, to be a successful revolutionary, one must also be patient and consistently plan for real reform.”

Here is what to take away from this: Every time you hear that “Social Security is going broke” you are hearing a manufactured propaganda point that is part of a decades-old strategy. Every time you hear that “Social Security is a Ponzi scheme” you are hearing that strategy in operation. Every time you hear that “Social Security won’t be there for me anyway” ” you are witnessing that strategy unfold.

The Problem

The Social Security program is entirely self-funded, separate from the way that the government taxes and spends for other programs. People set aside money in their working years, they get a monthly amount when they retire. (The program also has other benefits including disability benefits, survivors funds and others.) Social Security does not contribute to the deficit in any way.

You never hear that the huge, vast, bloated, enormous, mammoth military budget is “going broke” or “won’t be there for you.” But year after year you hear that Social Security is “in trouble.”

Currently the program has built up a huge trust fund – over $2.5 trillion. This is invested in US Treasury Bonds, and is earning interest. But there are projections that this trust fund will be depleted in approx. 2037, and if this happens the program will have to cut payouts by as much as 25%. (Hey. when does the military budget Trust Fund run down?)

One big reason for this shortfall is that the last time the programs was comprehensively adjusted (1983, Greenspan Commission) certain economic growth and income projections were used to decide how much “payroll tax” to take out of people’s paychecks. They increased the amount taken out of paychecks, and set up an increasing “cap” on the income that would be taxed. Right now 6.2% (temporarily reduced to 4.2%) is taken out of paychecks, and employers kick in another 6.2%, on income up to a “cap” of $106,800. There is no “payroll tax” on amounts above that “cap.”

But something changed between 1983 and nowalmost all the income gains have gone to a few at the very top. Instead of people who mostly were under that “cap” getting raises, thereby increasing the amount they pay into the fund, the raises went to people who already pass that amount, so the increased income is not contributing to the program. So that money that was calculated would go into the Social Security Trust Fund instead went to the top few. As a result the program is no longer bringing in enough money to keep the trust fund fully-funded past 2037.

Sen. Sanders’ Solution

Senator Bernie Sanders is introducing a bill to the Senate to fix this, once and for all. In simple terms, this bill will start taxing income above $250,000 a year to cover this Social Security shortfall. So instead of just “raising the cap” it lets that cap stay, and then takes it off again on income above $250,000. In effect it means there will be a gap between the current top income that is taxed, and $250K.

Get the money from where the money went: So because much of the real Social Security problem is that so much income is now going to just a few at the top, this gets the money to fix the problem from those top-level incomes.

Here is Sanders, talking about his bill:

“When [Social Security] was developed, 50 percent of seniors lived in poverty. Today, poverty among seniors is too high, but that number is ten percent. Social Security has done exactly what it was designed to do!”


Emphasis Mine

see:http://www.truth-out.org/understand-rights-attack-social-security/1314537823

GOP’s Debt Solution: Soak the Poor

By Carl Gibson, Reader Supported News

magine a bulky schoolyard bully routinely holding you and your classmates upside-down by your shoes and pocketing the money that falls out, using the amount gained from his extortion to buy a new bike at the end of each semester. Now imagine enduring this process every day, all year, throughout each grade of school.

What if one day, the bully actually complained that you weren’t bringing enough lunch money to school because he wanted a nicer bike? Would you comply and let him rob you of a larger amount, or would you and your fellow classmates surround the teacher and demand the bully return the money he stole?

Despite billionaire Warren Buffett‘s pleas to reduce the deficit by shifting the tax burden to the super-rich, Republican members of Congress have officially come out in favor of raising taxes on the poor, while fiercely protecting trillions in tax handouts for billionairesbig oil and corporate jet owners. Right-wing politicians and corporate-media pundits have now set their sights on “lucky duckies,” or the bottom half of Americans who don’t pay federal income taxes. As law professor Edward Kleinbard noted, this statement is misleading and ignores the need for meaningful reform of our tax code.

Jon Stewart creatively dismantled the poor-people-don’t-pay-taxes argument on The Daily Show, highlighting conservatives who dismissed the $700 billion in revenue gained from ending the Bush tax cuts for the wealthy in 2010. According to Stewart’s calculations, taking exactly half of everything owned by the bottom 50% of Americans would also generate $700 billion, exactly as much revenue as increasing the tax rate for the richest Americans by a modest 3%. Stewart sarcastically suggested Republicans trim the deficit by seizing all assets owned by the bottom half of Americans.

It’s incredibly audacious for the rich to ask the poor to pay more in taxes in order to protect theirbudget-busting tax breaks, especially considering America’s wealth disparity. The gap between the richest and everyone else has grown to levels even greater than on the eve of the crash that triggered the great depression, with the top .001% of Americans now owning 976 times more than the bottom 90%. In 1928, the richest only owned 892 times more than the bottom 90%.

And of course, those accusing the working poor of freeloading ignore the fact that 1 in 4 American jobs don’t even pay poverty wages, or that the federal income tax is inherently designed to avoid hitting the poor, the elderly and working families with children. Such bold accusations also ignore the reality that all of the aforementioned groups still pay roughly one-third of their income in sales, property, payroll and excise taxes.

A single mother struggling to keep a roof over her child’s head would probably love to trade places with a six-figure earner and bear the burden of paying federal income tax on a comfortable salary. But would a six-figure earner be willing to work three part-time minimum wage jobs and still worry about how the rent is going to be paid at the end of the month? Would he really be eager to forgo paying federal income tax if it meant he had to scrape quarters together to buy beans, lentils and ramen noodles for dinner?

Big oil doesn’t need $4 billion per year in taxpayer subsidies – they’re making record profits. Excessive tax cuts for millionaires and billionaires won’t create jobs – the unemployment rate doubledafter ten years of the Bush tax cuts. And corporate jet owners don’t need a tax break while public employees nationwide are losing their jobs to budget cuts.

America needs to surround our teacher before recess and make a strong statement together – the bullies don’t need to rob us of our lunch money to continue their excessive lifestyles. Let’s stop subsidizing wealth for the sake of wealth, and leave struggling middle-class families alone.


Carl Gibson, 24, of Lexington, Kentucky, is a spokesman and organizer for US Uncut, a nonviolent, creative direct-action movement to stop budget cuts by getting corporations to pay their fair share of taxes. He graduated from Morehead State University in 2009 with a B.A. in Journalism before starting the first US Uncut group in Jackson, Mississippi, in February of 2011. Since then, over 20,000 US Uncut activists have carried out more than 300 actions in over 100 cities nationwide. You may contact Carl at carl@rsnorg.org.

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.”

Emphasis Mine

see:http://readersupportednews.org/opinion2/279-82/7202-gops-debt-solution-soak-the-poor

5 Reasons Capitalism Has Failed

By Bob Burnett, The Smirking Chimp, via AlterNet

(N.B.: Marx was right, after all…)

We live in interesting times. The global economy is splintering. U.S. voters hate all politicians and there’s political unrest throughout the world. The root cause of this turmoil is the failure of the dominant economic paradigm — global corporate capitalism.

The modern world is ruled by multinational corporations and governed by a capitalistic ideology that believes: Corporations are a special breed of people, motivated solely by self-interest. Corporations seek to maximize return on capital by leveraging productivity and paying the least possible amount for taxes and labor. Corporate executives pledge allegiance to their directors and shareholders. The dominant corporate perspective is short term, the current financial quarter, and the dominant corporate ethic is greed, doing whatever it takes to maximize profit.

Five factors are responsible for the failure of global corporate capitalism. First, global corporations are too big. We’re living in the age of corporate dinosaurs. (The largest multinational is JP Morgan Chase with assets of $2 Trillion, 240,000 employees, and offices in 100 countries.) The original dinosaurs perished because their huge bodies possessed tiny brains. Modern dinosaurs are failing because their massive bureaucracies possess miniscule hearts.

Since the Reagan era global corporations have followed the path of least resistance to profit; they’ve swallowed up their competitors and created monopolies, which have produced humongous bureaucracies. In the short-term, scale helps corporations grow profitable, but in the long-term it makes them inflexible and difficult to manage. Gigantism creates a culture where workers are encouraged to take enormous risks in order to create greater profits; it’s based upon the notion that the corporation is “too big to fail.”

Second, global corporations disdain civil society. They’ve created a culture of organizational narcissism, where workers pledge allegiance to the enterprise. Corporate employees live in a bubble, where they log obscene hours and then vacation with their co-workers. Multinationals develop their own code of ethics and worldview separate from that of any national state. Corporate executives don’t care about the success or failure of any particular country, only the growth and profitability of their global corporation. (Many large corporations pay no U.S. income tax; in 2009 Exxon Mobil actually got a $156 M rebate.)

Third, global corporations are modern outlaws, living outside the law. There is noinvisible hand that regulates multinationals. In 1759 Philosopher Adam Smith argued that while wealthy individuals and corporations were motivated by self interest, an “invisible hand” was operating in the background ensuring that capitalist activities ultimately benefited society. In modern times this concept became the basis for the pronouncements of the Chicago School of Economics that markets were inherently self regulating. However, the last five years have demonstrated that there is no “invisible hand”unregulated markets have spelled disaster for the average person. The “recovery” of 2009-10 ensured that “too big to fail” institutions would survive and the rich would continue to be rich. Meanwhile millions of good jobs were either eliminated or replaced by low-wage jobs with poor or no benefits.

Fourth, global corporations are ruining our natural capital. Four of the top 10 multinational corporations are energy companies, with Exxon Mobil leading the list. But there are many indications that our oil reserves are gone. Meanwhile, other forms of natural capital have been depleted — arable land, water, minerals, forests, fish, and so forth. Multinational corporations have treated the environment as a free resource. When the timberlands of North America began to be depleted, lumber corporations moved to South America and then Asia. Now, the “easy pickings” are gone. Global corporations have ravished the world and citizens of every nation live with the consequences: dirty air, foul water, and pollution of every sort.

Fifth, global corporations have angered the world community. The world GDP is $63 Trillion but multinational corporations garner a disproportionate share — with banks accounting for an estimated $4 trillion (bank assets are $100 trillion). Global black markets make $2 trillion — illegal drugs account for at least $300 billion. In many parts of the world, a worker is not able to earn a living wage, have a bank account or drive a car, but can always obtain drugs, sex, and weapons. And while the world may not be one big village in terms of lifestyle, it shares an image of “the good life” that’s proffered in movies, TV, and the Internet. That’s what teenagers in Afghanistan have in common with teenagers in England; they’ve been fed the same image of success in the global community and they know it’s inaccessible. They are angry and, ultimately, their anger has the same target — multinational corporations (and the governments that support them).

We live in interesting times. The good news is we’re witnessing the failure of global corporate capitalism. The bad news is we don’t know what will replace it.”

(N.B.: Perhaps we do – see peoplesworld.org)

Bob Burnett is a writer and activist in Berkeley, Calif.

Emphasis Mine

see:http://www.alternet.org/story/152118/5_reasons_capitalism_has_failed?page=entire

Michele Bachmann Was Inspired By My Dad and His Christian Reconstructionist Friends — Here’s Why That’s Terrifying

By Frank Schaeffer, AlterNet
Posted on August 9, 2011,
see:http://www.alternet.org/story/151960/michele_bachmann_was_inspired_by_my_dad_and_his_christian_reconstructionist_friends_–_here%27s_why_that%27s_terrifying

As presidential candidate Michele Bachmann chews up scenery in the GOP primaries, the mainstream media is finally digging into her extremist beliefs in a serious way. In a profile published earlier this week, the New Yorker’s Ryan Lizza talked about Bachmann’s radical right-wing influences, which include the most extremist figures in the history of the religious right movement.

One of these was my evangelical leader father, Francis Schaeffer. Bachmann says in the New Yorker article that she got into politics because she watched a film series I directed called “How Should We Then Live,” written by and featuring my dad.

What the New Yorker article doesn’t do is explain why people like Bachmann, Sarah Palin, et al. turned to the hard reactionary anti-government right. I explain this in my book Sex, Mom and God. I think it’s important to understand this. So let me add what the New Yorker left out.

The Back Story

In 1983 I was the leader of a group of protesters who screamed abuse at Justice Harry Blackmun and made him beat a hasty retreat back into a college building at the University of Nebraska after he’d just been awarded an honorary degree. In the early 1980s my daughter Jessica and I—she was 12—drove into Boston several times to picket abortion clinics, including one where a few years later (in 1994) two people were shot dead and five were seriously wounded by “pro-life” activist John Salvi.

Dad agreed to lead several antiabortion demonstrations, too. He said, “We’re telling everyone else to get out there and picket, and some of our people are getting arrested, so we can’t say no to doing what we’re telling others to do.”

That was then. Today I’m on the “other side.”

America has a problem: It’s filled with people who take the Bible seriously. America has a blessing: It’s filled with people who take the Bible seriously. How does this blessing coexist with the curse derived from the same source: the Bible? The answer is that the Bible is a curse or a blessing depending on who is doing the interpreting. Sometimes belief in the Bible leads to building a hospital. Sometimes it leads to justifying perpetual war and empire building. Same book—different interpretation.

If the history of Christianity proves one thing, it’s that you can make the Bible “say” anything. When you hear words like “We want to take back America for God!” the 21st-century expression of such theocratic ideas can be traced back to some of my old friends: the Reconstructionists.

Most Americans have never heard of the Reconstructionists. But they have felt their impact through the Reconstructionists’ profound (if indirect) influence over the wider (and vast) evangelical community.

Take Michele Bachmann. She is a Reconstructionist schooled – literally – by some of that obscure movement’s leading thinkers, including my father.

The evangelicals have shaped the politics of a secular culture that barely understood the religious right, let alone the forces within that movement that gave it its edge. The Americans inhabiting the wider (and more secular) culture just saw the results of Reconstructionism without understanding where those results had come from—for instance, how the hell George W. Bush got elected and then reelected or why Michele Bachmann was into home schooling long before she was into trying to become president in order to turn America into a homophobic theocracy.

Victimhood

If you feel victimized by modernity, then the Reconstructionists have the answer in their version of biblical interpretation. Reconstructionists want to replace the U.S. Constitution and Bill of Rights with their interpretation of the Bible.

The Reconstructionist worldview is ultra-Calvinist but, like all Calvinism has its origins in ancient Israel/Palestine, when vengeful and ignorant tribal lore was written down by frightened men (the nastier authors of the Bible) trying to defend their prerogatives to bully women, murder rival tribes, and steal land. (These justifications may have reflected later thinking: origin myths used as propaganda to justify political and military actions after the fact, such as the brutality the Hebrews said God made them inflict on others and/or their position as the Chosen People.)

In its modern American incarnation, which hardened into a 20th-century movement in the 1960s and became widespread in the 1970s, Reconstructionism was propagated by people like my father and others I knew and worked with closely when I, too, was both a Jesus Victim and a Jesus Predator claiming God’s special favor.

The Leaders

The leaders of the Reconstructionist movement included the late Rousas Rushdoony (Calvinist theologian, father of modern-era Christian Reconstructionism, patron saint to gold-hoarding haters of the Federal Reserve, haters of the US Government and creator of the modern evangelical home school movement), his son-in-law Gary North (an economist and publisher), and David Chilton (Calvinist pastor and author).

No, the Reconstructionists are not about to take over America, the world, or even most American evangelical institutions. Bachmann – for instance – will likely never be president. But their influence has not abated, however a la Tea Party.

The Reconstructionists have been like a drop of radicalizing flavoring added to a bottle of water: They’ve subtly changed the water’s flavor. And even though most evangelicals, let alone the general public, don’t know the names of the leading Reconstructionist thinkers, the world we live in—where a radicalized, angry government-hating religious right has changed the face of American politics and spun off into movements such as the Tea Party—is a direct result of that “flavoring.”

Anyone who wants to understand American politics, not to mention North American religion, had better get acquainted with the Reconstructionists. For instance these folks just held America hostage in the debt crisis, an attempt to – literally – destroy the government’s ability to function at all a manufactured “crisis” in which Bachmann was a leading proponent of scorched-earth, destroy the system “politics.”

Reconstructionism, also called Theonomism, seeks to reconstruct “our fallen society.” Its worldview is best represented by the publications of the Chalcedon Foundation (which has been classified as an antigay hate group by the Southern Poverty Law Center).

Kill the Gays

According to the Chalcedon Foundation Web site, the mission of the movement is to apply “the whole Word of God” to all aspects of human life: “It is not only our duty as individuals, families and churches to be Christian, but it is also the duty of the state, the school, the arts and sciences, law, economics, and every other sphere to be under Christ the King. Nothing is exempt from His dominion. We must live by His Word, not our own.”

Until Rushdoony, founder and late president of the Chalcedon Foundation, began writing in the 1960s, most American fundamentalists (including my parents) didn’t try to apply biblical laws about capital punishment for homosexuality to the United States. Even the most conservative evangelicals said they were “New Testament Christians.” In other words, they believed that after the coming of Jesus, the harsher bits of the Bible had been (at least to some extent) transformed by the “New Covenant” of Jesus’ “Law of Love.”

By contrast, the leaders of Reconstructionism believed that Old Testament teachings—on everything from capital punishment for gays to the virtues of child-beating—were still valid because they were the inerrant Word and Will of God and therefore should be enforced. Not only that, they said that biblical law should be imposed even on nonbelievers. This theology was the American version of the attempt in some Muslim countries to impose Shariah (Islamic law) on all citizens, Muslims and non-Muslims alike.

It was my old friend, the short, stocky, bearded Armenian American Rousas Rushdoony who in 1973 most thoroughly laid out the far right/religious right agenda in his book The Institutes of Biblical Law. Rushdoony changed the definition of salvation from the accepted evangelical idea that it applies to individuals to the claim that salvation is really about politics. With this redefinition, Rushdoony contradicted the usual reading of Jesus’ words by most Christians to mean that Jesus had not come to this earth to be a political leader: “My kingdom is not of this world” (John 18:36).

According to Rushdoony, all nations on earth should be obedient to the ancient Jewish/Christian version of “God’s Law,” so that the world will experience “God’s blessings.” Biblical salvation will then turn back the consequences of the Fall, and we’ll be on our way to the New Eden. To achieve this “turning back,” coercion must be used by the faithful to stop evildoers, who are, by definition, anyone not obeying all of God’s Laws as defined by the Calvinist and Reconstructionist interpretation of the Bible.

Once Christians are in charge, according to Gary North, rather than turning the other cheek to our enemy, we “should either bust him in the chops or haul him before the magistrate, and possibly both.” North adds, “It is only in a period of civil impotence that Christians are under the rule to ‘resist not evil.’”

How far would the Reconstructionists go? North, writes, “The question eventually must be raised: Is it a criminal offence to take the name of the Lord in vain? When people curse their parents, it unquestionably is a capital crime (Exodus. 21:17). The son or daughter is under the lawful jurisdiction of the family. The integrity of the family must be maintained by the threat of death. Clearly, cursing God (blasphemy) is a comparable crime, and is therefore a capital crime (Leviticus. 24:16).”

How might a Reconstructionist version of the Sermon on the Mount read, inclusive of Reconstructionist “inside” theological/political code words like “Law-Word”? Maybe something like this:

Blessed are those who exercise dominion over the earth: for theirs is the kingdom of heaven. Blessed are those who deport the immigrants: for they shall be comforted. Blessed are those who agree that the significance of Jesus Christ as the ‘faithful and true witness’ is that He not only witnesses against those who are at war against God, but He also executes them: for they shall inherit the earth. Blessed are those who subdue all things and all nations to Christ and His Law-Word: for they shall be filled. Blessed are those who say that those who refuse to submit publicly to the eternal sanctions of God must be denied citizenship: for they shall obtain mercy. Blessed are the Calvinist Christians who are the only lawful heirs to the Kingdom: for they shall see God. Blessed are those who know that turning the other cheek is a temporary bribe paid to evil secular rulers: for they shall be called sons of God if they bust their enemies in the chops. Blessed are those who have taken an eye for an eye: for theirs is the Kingdom of Heaven. Blessed are ye when ye know that the battle for My sake is between the Christian Reconstruction Movement and everyone else. Rejoice, and be exceedingly glad: for great is your reward in heaven. For so we are to make Bible-obeying disciples of anybody who gets in our way, and kill those who resist.

The Movement to ‘Take Back America For God’

I remember first meeting Rushdoony at his home in Vallecito, California, in the late 1970s. (That was where I also met Gary North for the first time.) I was accompanied by Jim Buchfuehrer, who had produced the antiabortion documentary series of films with me that featured my father and Dr. C. Everett Koop. (Koop would become Ronald Reagan’s surgeon general.)

The movie series and book project later got Michele Bachamnn to become an ardent clinic picketer. Whatever Happened to the Human Race? was Koop’s and my brainchild. He had seen my dad’s and my first film series—How Should We Then Live? (the series I directed and that Bachmann says got her into politics and that the New Yorker article describes in detail) —and Koop wanted to team up to expand on the last episodes, in which Dad had denounced the “imperial court” for “stripping the unborn” of their right to life.

The impact of the two film series, as well as their companion books, was to give the evangelical community a frame of reference through which to understand the “secularization of American culture” and to point to the “human life issue” as the watershed between a “Christian society” and a utilitarian, relativistic “post-Christian” future. This has become Bachmann’s agenda, and also the agenda of Fox News as they blast her views over America.

By the time the films had been viewed by millions of American evangelicals, Dad had become the leader of those evangelicals who took a “stand” on the “life issues.” And the films made the Reconstructionists believe that perhaps in Francis Schaeffer and his up-and-coming son they might have found new allies. So I began to get messages that Rushdoony urgently wanted to meet me.

Hating America to ‘Save’ It

When we talked, Rushdoony talked about “secular America” as if it were an enemy state, not our country. He talked about how “we” should all use cash, never credit cards, since cards would make it “easy for the government to track us.” Rushdoony spoke passionately about the virtues of gold, how very soon the conflict between the Soviet Union and America would lead to war. Rushdoony also noted that Vallecito was “well located to survive the next war” given “the prevailing wind directions” and its water supply.

The message of Rushdoony’s work is best summed up in one of his innumerable Chalcedon Foundation position papers, “The Increase of His Government and Peace.” He writes, “The ultimate and absolute government of all things shall belong to Christ.” In his book Thy Kingdom Come—using words that are similar to those the leaders of al Qaida would use decades later in reference to “true Islam”—Rushdoony argues that democracy and Christianity are incompatible: “Democracy is the great love of the failures and cowards of life,” he writes. “One [biblical] faith, one law and one standard of justice did not mean democracy. The heresy of democracy has since then worked havoc in church and state.Christianity and democracy are inevitably enemies.”

The impact of Reconstructionism (often under other names) has grown even though Rushdoony has largely been forgotten even in evangelical circles, let alone the wider world. He made the evangelical world more susceptible to being politicized—and manipulated by some very smart people like Bachmann.

Religious leaders like Jerry Falwell who once had nothing to do with politics per se were influenced by the Reconstructionists. That in turn moved the whole evangelical movement to the right and then into the political arena, where it became “normal” for evangelical leaders to jump head first into politics with little-to-no regard for the separation of church and state.

Extremists For Jesus

Without the work of the Reconstructionists, the next generation of religious activists (trying to use the courts, politics, and/or civil disobedience to impose their narrow theology on the majority of Americans) may have been relegated to some lonely street corner where they could gather to howl at the moon. Instead, the 21st century’s theocrats (though they’d never so identify themselves) enjoyed the backing of Fox News, were tolerated at places like Princeton University, and could be found running many evangelical organizations. And now in Bachmann they have their champion: a full fledged Reconstructionist radical.

From Puritans To Government Haters

The Puritans’ theology of government was formed in the context of an embrace of all Christians’ duty to demand the “public good.” This was exemplified by such unquestioned well-established concepts as the “king’s highway,” a common road system protected by the crown (government) and a common law that applied to all. One’s common duty to others was accepted as the essential message of Christian civilization. Public spaces were defended by government in the early New England settlements, just as they had been in England.

What’s so curious is that in this religion-inflicted country of ours, the same evangelicals, conservative Roman Catholics, and others like George and Bachmann who had been running around post-Roe insisting that America had a “Christian foundation” and demanding a “return to our heritage” and/or more recently trashing health care reform as “communist” ignored the fact that one great contribution of Christianity was a commitment to strong central government. For instance, this included church support for state-funded, or state-church-funded, charities, including hospitals, as early as the fourth century.

Government was seen as part of God’s plan for creating social justice and defending the common good. Christians were once culture-forming and culture-embracing people. Even the humanism preached by the supposedly “anti-Christian” Enlightenment thinkers of the 18th century was, in fact, a Deist/Christian “heresy,” with a value system espousing human dignity borrowed wholesale from the Sermon on the Mount.

In the scorched-earth post-Roe era of the “health care reform debates” of 2009 and beyond, evangelicals seemed to believe that Jesus commanded that all hospitals (and everything else) should be run by corporations for profit, just because corporations weren’t the evil government. The right even decided that it was “normal” for the state to hand over its age-old public and patriotic duties to private companies—even for military operations (“contractors”), prisons, health care, public transport, and all the rest.

The religious right/far right et al. favored private “facts,” too. They claimed that global warming wasn’t real. They asserted this because scientists (those same agents of Satan who insisted that evolution was real) were the ones who said human actions were changing the climate. Worse, the government said so, too!

“Global warming is a left-wing plot to take away our freedom!”

“Amtrak must make a profit!”

Even the word “infrastructure” lost its respectability when government had a hand in maintaining roads, bridges and trains.

In denial of the West’s civic-minded, government-supporting heritage, evangelicals (and the rest of the right) wound up defending private oil companies but not God’s creation, private cars instead of public transport, private insurance conglomerates rather than government care of individuals. The price for the religious right’s wholesale idolatry of private everything was that Christ’s reputation was tied to a cynical political party “owned” by billionaires. It only remained for a far right Republican-appointed majority on the Supreme Court to rule in 2010 that unlimited corporate money could pour into political campaigns—anonymously—in a way that clearly favored corporate America and the superwealthy, who were now the only entities served by the Republican Party.

The evangelical rubes who are Bachmann’s foot soldiers never realized that the logic of their “stand” against government had played into the hands of people who never cared about human lives beyond the fact that people could be sold products. By the 21st century, Ma and Pa No-name were still out in the rain holding an “Abortion is Murder!” sign in Peoria and/or standing in line all night in some godforsaken mall in Kansas City to buy a book by Sarah Palin and have it signed. But it was the denizens of the corner offices at Goldman Sachs, the News Corporation, Exxon, and Halliburton who were laughing.

Frank Schaeffer is the author of “Crazy for God: How I Grew Up As One Of The Elect, Helped Found The Religious Right, And Lived To Take All (Or Almost All) Of It Back.”

© 2011 Independent Media Institute. All rights reserved.
View this story online at: http://www.alternet.org/story/151960/

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Americans Don’t Realize Just How Badly We’re Getting Screwed by the Top 0.1 Percent Hoarding the Country’s Wealth

N.B.: An oft disdained 19th century philosopher would hardly be surprised!

From AmpedStaus  - via AlterNet – by David Degraw

“With an unprecedented sum of wealth, tens of trillions of dollars, held within the top one-tenth of one percent of the US population, we now have the most severe inequality of wealth in US history. Not even the robber barons of the Gilded Age were as greedy as the modern-day economic elite.

As American philosopher John Dewey said, “There is no such thing as the liberty or effective power of an individual, group, or class, except in relation to the liberties, the effective powers, of other individuals, groups or classes.”

In my report, The Economic Elite vs. the People, I reported on the strategic withholding of wealth from 99 percent of the US population over the past generation. Since the mid-1970s, worker production and wealth creation has exploded. As the statistics throughout this report prove, the dramatic increase in wealth has been almost entirely absorbed by the economic top one-tenth of one percent of the population, with most of it going to the top one-hundredth of one percent.

If you are wondering why a critical mass of people desperately struggling to make ends meet are still not fighting back with overwhelming force and running the mega-wealthy aristocrats out of town, let’s consider two significant factors:

1) People are so busy trying to maintain their current standard of living that their energies are consumed by holding onto the little they have left.

2) People have very little understanding of how much wealth has been consolidated within the top economic one-tenth of one percent.

Considering the first factor, it is obvious that people have become beaten down psychologically and financially. A report in the Guardian titled, “Anxiety keeps the super-rich safe from middle-class rage,” suggests that people are so desperate to hold onto what they have that they are too busy looking down to look up: “As psychologists will tell you, fear of loss is more powerful than the prospect of gain. The struggling middle classes look down more anxiously than they look up, particularly in recession and sluggish recovery.”

Considering the second factor, people do not understand how much wealth has been withheld from them. The average person has never personally experienced or seen the excessive wealth and luxury that the mega-rich live in. Wealth inequality has grown so extreme and the wealthy have become so far removed from average society, it is as if the rich exist in some outer stratosphere beyond the comprehension of the average person. As the Guardian report states:

“… having little daily contact with the rich and little knowledge of how they lived, they simply didn’t think about inequality much, or regard the wealthy as direct competitors for resources. As the sociologist Garry Runciman observed: ‘Envy is a difficult emotion to sustain across a broad social distance.’… Even now most underestimate the rewards of bankers and executives. Top pay has reached such levels that, rather like interstellar distances, what the figures mean is hard to grasp.”

In fact, the average American vastly underestimates our nation’s severe wealth disparity. This survey, featured in the NY Times, reveals that Americans think our society is far more equal than it actually is:

“In a recent survey of Americans, my colleague Dan Ariely and I found that Americans drastically underestimated the level of wealth inequality in the United States. While recent data indicates that the richest 20 percent of Americans own 84 percent of all wealth, people estimated that this group owned just 59 percent – believing that total wealth in this country is far more evenly divided among poorer Americans.

What’s more, when we asked them how they thought wealth should be distributed, they told us they wanted an even more equitable distribution, with the richest 20 percent owning just 32 percent of the wealth. This was true of Democrats and Republicans, rich and poor – all groups we surveyed approved of some inequality, but their ideal was far more equal than the current level.”

This chart shows the survey’s results:

The overwhelming majority of the US population is unaware of the vast wealth at hand. An entire generation of unprecedented wealth creation has been concealed from 99 percent of the population for over 35 years. Having never personally experienced this wealth, the average American cannot comprehend what is possible if even a fraction of the money was used for the betterment of society.

Given modern technology and wealth, American citizens should not be living in poverty. The statistics demonstrate that we now live in a neo-feudal society. In comparison to the wealthiest one-tenth of one percent of the population, who are sitting on top of tens of trillions of dollars in wealth, we are essentially propagandized peasants.

The fact that the overwhelming majority of Americans are struggling to get by, while tens of trillions of dollars are consolidated within a small fraction of the population, is a crime against humanity.

The next time you are stressed out, struggling to make ends meet and pay off your debts, just think about the trillions of dollars sitting in the obscenely bloated pockets of the financial elites. I still cling to the hope that once enough people become aware of this fact, we can have the non-violent revolution we so urgently need. Until then, the rich get richer as a critical mass with increasingly dire economic prospects desperately struggles to make ends meet.

emphasis mine

see:http://www.alternet.org/story/152010/americans_don%27t_realize_just_how_badly_we%27re_getting_screwed_by_the_top_0.1_percent_hoarding_the_country%27s_wealth?page=entire

Don’t Fall for the GOP Lie

By Robert Reich, Robert Reich’s Blog

Don’t fall for the GOP lie: There is no budget crisis. There’s a job and growth crisis.

“A friend who’s been watching the absurd machinations in Congress asked me “what happens if we don’t solve the budget crisis and we run out of money to pay the nation’s bills?”

It was only then I realized how effective Republicans lies have been. That we’re calling it a “budget crisis” and worrying that if we don’t “solve” it we can’t pay our nation’s bills is testament to how successful Republicans have been distorting the truth.

The federal budget deficit has no economic relationship to the debt limit. Republicans have linked the two, and the Administration has played along, but they are entirely separate. Republicans are using what would otherwise be a routine, legally technical vote to raise the debt limit as a means of holding the nation hostage to their own political goal of shrinking the size of the federal government.

In economic terms, we will not “run out of money” next week. We’re still the richest nation in the world, and the Federal Reserve has unlimited capacity to print money.

Nor is there any economic imperative to reach an agreement on how to fix the budget deficit by Tuesday. It’s not even clear the federal budget needs that much fixing anyway.

Yes, the ratio of the national debt to the total economy is high relative to what it’s been. But it’s not nearly as high as it was after World War II – when it reached 120 percent of the economy’s total output.

If and when the economy begins to grow faster – if more Americans get jobs, and we move toward a full recovery – the debt/GDP ratio will fall, as it did in the 1950s, and as it does in every solid recovery. Revenues will pour into the Treasury, and much of the current “budget crisis” will be evaporate.

Get it? We’re really in a “jobs and growth” crisis – not a budget crisis.

And the best way to get jobs and growth back is for the federal government to spend more right now, not less – for example, by exempting the first $20,000 of income from payroll taxes this year and next, recreating a WPA and Civilian Conservation Corps, creating an infrastructure bank, providing tax incentives for small businesses to hire, expanding the Earned Income Tax Credit, and so on.

But what happens next week if Congress can’t or won’t deliver the President a bill to raise the debt ceiling? Remember: This is all politics, mixed in with legal technicalities. Economics has nothing to do with it.

One possibility, therefore, is for the Treasury to keep paying the nation’s bills regardless. It would continue to issue Treasury bills, which are our nation’s IOUs. When those IOUs are cashed at the Federal Reserve Board, the Fed would do what it has always done: Honor them.

How long could this go on without the debt ceiling being lifted? That’s a legal question. Republicans in Congress could mount a legal challenge, but no court in its right mind would stop the Fed from honoring the full faith and credit of the United States.

The wild card is what the three big credit-rating agencies will do. As long as the Fed keeps honoring the nation’s IOUs, America’s credit should be deemed sound. We’re not Greece or Portugal, after all. We’ll still be the richest nation in the world, whose currency is the basis for most business transactions in the world.

Standard & Poor’s has warned it will downgrade the nation’s debt from a triple-A to a double-A rating if we don’t tend to the long-term deficit. But, as I’ve noted, S&P has no business meddling in American politics – especially since its own non-feasance was partly responsible for the current size of the federal debt (had it done its job the debt and housing bubbles wouldn’t have precipitated the terrible recession, and the federal outlays it required).

As long as we pay our debts on time, our global creditors should be satisfied. And if they’re satisfied, S&P, Moody’s, and Fitch should be, too.

Repeat after me: The federal deficit is not the nation’s biggest problem. The anemic recovery, huge unemployment, falling wages, and declining home prices are bigger problems. We don’t have a budget crisis. We have a jobs and growth crisis.

The GOP has manufactured a budget crisis out of the Republicans’ extortionate demands over raising the debt limit. They have succeeded in hoodwinking the public, including my friend.”


Robert Reich is Chancellor’s Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He has written thirteen books, including “The Work of Nations,” “Locked in the Cabinet,” “Supercapitalism” and his latest book, “AFTERSHOCK: The Next Economy and America’s Future.” His ‘Marketplace’ commentaries can be found on publicradio.com and iTunes.

Emphasis mine

see:http://www.readersupportednews.org/opinion2/277-75/6813-dont-fall-for-the-gop-lie

The 6 Biggest Lies About the U.S. Debt

From Alternet, by Arun Gupta

“There is one simple truth about the discussion of the looming U.S. debt crisis: it is largely a compendium of half-truths, distortions, myths and outright lies.”

“For example, is it true that the U.S. debt is unsustainable, which is spurring the budget-cutting fever? Far from it. While U.S. debt is at one of its highest levels ever in terms of gross domestic product, the interest payments in 2011 on the  $14.3 trillion public debt will be a mere $386 billion. This is barely more than the $364 billion paid way back in 1998. In real terms, the U.S. economy has grown nearly 30 percent since then. Rock-bottom interest rates on U.S. government debt account for the low payments today, but the practical effect is that servicing the debt as a percentage of GDP is the lowest it’s been in decades.

Or what about hysterical headlines like “U.S. Debt Default Looms” (courtesy of NPR) unless Democrats and Republicans agree to raise the debt ceiling? They are completely untrue. Richard Wolff, professor of economics emeritus at the University of Massachusetts, Amherst, says, if there is no agreement by Aug. 2 to allow the U.S. Treasury to borrow more funds, then “the government instead would choose among cutbacks on various expenditures such as state and local aid, medical aid, for war, for infrastructure. It would extraordinarily unusual for a government in such a situation to attack its creditors.”

If no deal on the debt ceiling is reached this sucks for the rest of us, such as the millions depending on their portion of the $23 billion in Social Security payments scheduled for Aug. 3. A short delay would do no serious harm, but a longer delay, perhaps just a week or two, would be devastating.

For one, removing income support payments would have a major ripple effect in our consumer-based economy. Spending would drop precipitously on items like food, medicine, transportation, clothing and household goods. Peter Bratsis, a professor of Political Theory at the University of Salaford in England and a Greek-American, says his home country is a cautionary tale. Speaking from Greece, Bratsis said since the debt crisis hit last summer many people’s income have dropped up to 25 percent as wages, pensions and social welfare have been sacrificed to please the banks. As a result “Greece is in an economic depression. In Athens, on every block, you have shuttered bakeries, cafes, shoe stores, plumbers and other small businesses that are closed because either people don’t have the money to spend or are afraid to spend.”

Second, says Wolff, “The U.S. Government is one of the largest buyers, if not the largest purchaser of commodities in the world of oil, of computers, of weapons. In an already shaky global economy, the biggest buyer of goods would be making cutbacks. This would be stupefyingly dumb.” He adds that by playing chicken with the national debt, Washington has already irreparably wounded the economy. “The world depends on the U.S. economy running smoothly. A default would lead governments and companies to rethink their relation to the United States, and this has already happened.”

The point is while the dangers are rife in a delay in raising the debt ceiling the doomsday scenario of a government default on debt is not going to occur. The creditors will be kept happy and there will be no default because that is how government works in a capitalist economy. And even if the impasse dragged on, the Fed could dip into its $550 billion in reserves, including more than $400 billion in gold at current prices, to keep making debt payments.

One blatant lie is that Republicans and Democrats, the Congress and the White House are serious about reining in budget deficits to reduce the long-term debt. They are not. The Congressional Budget Office calculates that the deficit from 2011 to 2013 will be $3.5 trillion. Over the decade it will be $8.5 trillion. Now, lots of numbers are being thrown about on spending cuts over a 10-year period, but they keep dropping – the Senate Democrats are proposing $2.2 trillion in cuts and costs savings while the Republicans weigh in at $915 billion.

Cutting one or two hundred billion dollars a year is meaningless. Wolff says, “Even if you cut the debt $300 billion, you are left with an enormous annual deficit that adds hugely to the national debt they all claim to care so much about. It gives lie to the idea that the Republicans and Democrats are interested in trying to cut the national debt.”

If you really believe shrinking the debt is an imperative, then there are easier ways to do it then stealing grandma’s meds. The Bush wars and tax cuts – which are still going – cost $3.3 trillion from 2002 to 2009. Cutting the trillion-dollar war budget in half, ending the Bush tax cuts (which Obama could have done with no sweat when he was bursting with political capital in early 2009 or by calling the GOP bluff before or after the 2010 midterm elections) and raising tax rates on corporations would pretty much wipe out the deficit over the next decade. In the case of corporate taxes, during the last decade it averaged only 10.7 percent of federal revenues – and since 2008 it’s shrunk to barely 5 percent – versus 29.8 percent in the 1950s.

Of course, the stand-off is based on another lie: that Congress and Obama administration can enforce cuts over a 10-year period. The budget process is an annual exercise. There is no provision whatsoever to make cuts permanent because they can always be undone by Congress, and taxes can always be lowered or costly new wars started, both of which always seem to happen, widening the deficit once more.

There is no end to the falsehoods and fantasies from the chattering classes. “We are in recovery.” So says Ben Bernanke – since 2009 no less. Obama has been saying the same since 2010, while hedging that it is “painfully slow.” Really? Tell that to the 25 million Americans who are unemployed, underemployed or have dropped out of the labor force. This amounts to an unemployment rate of16.2 percent, but the real rate is probably closer to 20 percent after factoring in youth unable to enter the workforce or those who have taken early retirement. Or try telling the 100 million Americans who are effectively caught in poverty (using far more realistic measures than the government does) or the 6.5 million households with mortgages that are delinquent or in foreclosure that we are in recovery.

The notion we are in recovery is based on believing the downturn was “the Great Recession,” a distortion the New York Times helped spread. Paul Krugman is one of the few mainstream commentators saying that not only is there no end in sight to the four-year-long slump, let’s give it a more accurate label such as, “the Lesser Depression.” Suppose the corporate media had been saying “Depression” for the last few years. It would have bolstered support for extraordinary measures to dig out of an extraordinary crisis, such as policies that did work during the last depression: jobs programs, infrastructure, social welfare, stronger labor rights and aid to local governments. But this would mean redistribution of wealth downwards instead of upwards. Therefore, saying recession makes it sound part of the normal boom-and-bust cycle, one we will overcome through the magic of the market as we have so many times before.

We can then move on to the recovery phase, which means getting our economic house in order by reducing the debt, a lie told by Serious People whether pundits, politicians or experts. We are being led to think the wisest course is repeating the major mistake of the Great Depression – enforcing austerity in a deep economic funk. When the New York Times backs huge cuts to social spending, you can be sure the rest of the media assumes squeezing the poor and middle class harder is the tonic for economic health. Sure, the Times may sniffle that Obama’s stunning offer to hack $650 billion from Medicare, Medicaid and Social Security was “overly generous” to Republicans but that is just code for “we in the liberal penthouse support it with mild reservations.” On the other side of the media aisle, the Wall Street Journal endorsed the Republican sadism, saying that none of the critics on the right offer “anything nearly as fiscally or politically beneficial as Mr. Boehner’s plan.”

This is what passes for the range of opinion in the two most esteemed newspapers in the country. That’s because we are still in thrall of the biggest lie of all – market fundamentalism. An eternity ago, in 2009, Newsweek declared, “We Are All Socialists Now.” They were right, but only in the way America has always been socialists: we socialize the rich when they lose money, and then we socialize their ability to profit. (The esteemed economic historian Karl Polanyi argued “laissez-faire was planned.” By that, he meant profit-making depends on government regulation of land, labor, finance and the environment. On top of that, there are outright transfers of wealth that occur during wars, infrastructure building and as part of social reforms, such as the railways, the Cold War, Medicare, the internet, and the bank bailouts.)

Thus, the debate is about differing Democratic and Republican visions on which parts of the welfare state should be sent to the glue factory. “We all must sacrifice,” is the mantra. Never mind that the effect on the national debt will be laughably small. Slashing $650 billion from entitlements – Obama’s burnt offering – will nick a miniscule 3 percent off the national debt by 2020, while the suffering will be enormous. But we must do it to appease the markets.

Pleasing the markets means pleasing the credit rating agencies – Standard & Poor’s, Moody’s and Fitch – an example of cult-like devotion in which the elite command us to drink the Kool-Aid. Like a death watch, the media turn anxiously to the rating agencies to ask the condition of U.S. government debt. Are they going to downgrade it, which would mean higher interest rates and an even bigger debt problem? This is one more big lie as Japan’s huge debt – more than twice the size of U.S. debt as a percentage of GDP – was downgraded in January and “there was no negative impact at all,” according to one analyst.

But first let’s go to the tape and review how the big three credit rating agencies inflated the mortgage bubble. The bubble was driven by the banking industry’s insatiable appetite for debt, the repackaging of dicey mortgages into profitable securities. The agencies, especially Moody’s and S&P, gave investment-grade ratings to almost any sack of residential mortgage backed securities (RMBS) and collateralized debt obligations (CDO) that passed across their desks. By law, banks, pension funds, insurance companies and other institutional investors need investment-grade ratings on these securities to hold them. Since the rating agencies were paid by the issuers, they were raking in the cash by gold-plating shit. Moody’s revenue on these securities quadrupled from over $61 million in 2002 to over $260 million by 2006. For S&P, it went from $64 million to $265 million for CDOs in the same four years and from $184 million in 2002 to $561 million in 2007 for RMBSs.

Don’t think they didn’t know exactly what they were doing. At S&P, one manager emailed a co-worker in December 2006, “Let’s hope we are all retired and wealthy before this house of cards falters.” Then, according to a U.S. Senate report, the ratings firm triggered the financial collapse by downgrading huge amounts of these securities from AAA to junk. In one day, on Jan. 30, 2008, S&P downgraded an astonishing 6,300 ratings. In 18 months the two firms downgraded more securities than they had done in their entire 90-year histories. Once the securities turned to junk, the big players could no longer hold them, which burst the bubble as they were sold in a panic and losses began mounting on the bank’s balance sheets.

We know the rest of the story – the financial collapse, the trillions in bailouts and credit lines, the lack of punishment for executives at any of these firms, the return to obscene profits a year later, the de-fanging of any credible reform. But now, we are being told, the rating agencies word on debt is the word of God.

This time, S&P is not so much looking for a fast buck as nakedly pushing an agenda. In a blatant lie, S&P President Deven Sharma, who was summoned to testify before a House subcommittee on financial oversight on July 27, said his firm was “misquoted” in demanding $4 trillion in cuts and unctuously preached that ratings should be free of politics.

What happened is two weeks earlier, on July 14, S&P issued a detailed statement, explaining that it was placing both long-term and short-term U.S. debt “on CreditWatch with negative implications.” It explained that “there is an increasing risk of a substantial policy stalemate enduring beyond any near-term agreement to raise the debt ceiling.”

It did offer a safe passage. S&P said that if “an agreement would be enacted and maintained throughout the decade” to realize “budget savings of $4 trillion,” then “other things unchanged” it could affirm the stellar ratings on both short- and long-term U.S. debt. But, it warned, any “credible” agreement “would require support from leaders of both political parties.”

S&P knew exactly what it was saying. The only budget number it mentioned (three times) was $4 trillion. By saying both parties needed to sign on to an agreement to be credible, it knew the Republican agenda of strangling the last of social welfare would triumph. And by issuing the statement in the heat of negotiations, it threw its lot in with the Tea Party mob.

S&P was telling Capitol Hill to drive a stake through the heart of the welfare state. To let us peasants know we must till the corporate fields until the day we die. Otherwise, the credit rating deities will rain downgrades upon our heads, blighting the land for future generations.

We must pay now and forever. That is the truth, a truth so crude and cartoonish it seems comical. Which is why we need so many lies.

Arun Gupta is a founding editor of The Indypendent newspaper. He is writing a book on the decline of American Empire for Haymarket Books.

Emphasis Mine

see:http://www.alternet.org/story/151827/the_6_biggest_lies_about_the_u.s._debt?akid=7335.123424.kt7uO7&rd=1&t=2

Taxes are Way Too Low!

Robert Borosage, Our Future

“.. Washington doesn’t have a revenue problem, it has a spending problem,” says House Majority Leader Eric Cantor (R-Va.). All Republican legislators have been taught to chant this tired Republican “talking point” as if it were the Hare Krishna mantra.

To borrow one of Cantor’s favorite sneers,How could anyone believe that? Here’s a graph showing federal revenues as a percentage of GDP. Clearly Washington has a revenue problem.

In fact, Americans are paying the lowest percentage of their income in taxes since 1958. Corporate taxes which brought in over 6% of GDP in 1950 are nownear historic lows of barely 1%. Senator Carl Levin has just introduced the Stop Tax Haven Abuse Act of 2011 targeting the $100 billion in taxes lost annually to offshore tax havens. (Needless to say, House Republicans vow to go to the mat to protect the corporate tax dodges since loopholes are deemed tax hikes in their Fox world)

It gets worse. Hedge Fund billionaires now pay a lower tax rate than their chauffeurs, or the teachers of their children, or the cops that patrol their streets. The IRS reports that the richest 400 Americans – who made an average of $354 million a year in 2007 – paid an effective tax rate of 16.6%, down from 30% in 1995 and 23% in 2002. Even as their incomes doubled from 2001 to 2007, their effective tax rates were virtually halved from 1995.

If you count payroll taxes, the richest 400 Americans, pocketing over $354 million a year, are paying a lower tax rate than a hospital orderly working for $29,000 a year.

Clearly we have a “revenue problem” – and a major league indecency problem.”

emphasis mine

see:http://www.ourfuture.org/blog-entry/2011072814/ignorance-index-iii-revenue-problem