Yearly Archives: 2012

Chris Matthews Embraces Self-Parody by Calling for Obama to Ignore Krugman

By William K. Black
(Cross-posted and Benzinga.com)

Chris Matthews considers it urgent and essential that President Obama and House Speaker Boehner reach what they call a “Grand Bargain” that would impose an austerity budget and begin to unravel the safety net.  Why is it essential?  Matthews provided no analysis or discussion.  It was simply obvious that austerity and beginning to unravel the safety net were essential because otherwise we would face budget austerity via the so-called “fiscal cliff.”  The form of austerity imposed by the fiscal cliff would throw us into recession, increase unemployment, increase the budget deficit and the debt, cut social programs (and military spending), but not unravel the safety net.  If you think that adopting even greater austerity plus far more severe cuts to social programs and the safety net (i.e., what I term the “Great Betrayal”) in order to avoid “fiscal cliff” austerity is logically insane – then you might be rational.  Matthews, however, thinks that ability to use logic makes you a problem. Continue reading

How the Tea Party, Gang of Six, and Senate Liberals Saved Obama and the Nation

By William K. Black

In July 2011 President Obama and Speaker of the House John Boehner were on the verge of agreeing to the “Grand Bargain.”  The Grand Bargain was not finalized, but its key terms were agreed to.  It involved massive cuts in social programs and the safety net, modest increases in tax revenues, and an increase in the debt limit.  It was a massive austerity program of the kind that was hurling the Eurozone back into a gratuitous recession.  U.S. unemployment was 9.1% in July 2011 and the austerity package and resultant recession would have caused unemployment (and the deficit) to grow.  Unemployment would have been over 10% and rising in the run up to the 2012 election.  Obama would have further enraged Americans by cutting many popular programs and betraying the Democratic Party’s crown jewels – the safety net – in return for far smaller in revenues from the wealthy.  Instead of solving the supposed deficit and debt crises the austerity-induced recession would have likely caused the deficit and the national debt to grow.  Continue reading

The “Fiscal Cliff” Validates MMT

By Thornton “Tip” Parker

The fiscal cliff of increased taxes and reduced federal spending resulted from the hasty wedding of Congress and the Administration a few months back when the debt ceiling became a shotgun.  Now, all parties want something different.

Continue reading

Jobs Now: Make Obama’s Priority Reality and Expose the Lie of Lazy Laborers

By William K. Black

President Obama gave a major speech today on his legislative agenda.  He said that the overriding national priority had to be jobs.  We agree.

David Brooks’ November 8, 2012 column called on the Republican Party to become “The Party of Work.”  He put his primary message in his final paragraph for emphasis.

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Life After Debt

By Doug Bowles (UMKC)

The CBO’s post-election report released a couple of days ago (apparently in support of advancing the prospects for a Grand Bargain, aka the Great Betrayal) is grounded in relatively pessimistic projections with regard to federal deficit and debt growth.  (See this powerful critique of CBO’s methodology by Follette and Sheiner)  In assessing just how much credibility these projections deserve to be accorded in our policy debate, it might also instructive to remember how wildly optimistic the CBO projections were not so very long ago with regard to complete elimination of the federal debt. Continue reading

Populist Revolution? How a Bold New Voter Coalition Can Reshape the Nation

By Marshall Auerback
Cross-Posted from AlterNet.org

Minorities, independent women, gays, working-class white voters, and younger people overcame through high turnout a fierce social conservative block.

Photo Credit: Shutterstock.com

Tuesday’s election will be regarded as a pivotal one in US history. For 30 years the top 1 percent has manipulated the masses to vote against their own interests. It was able to do that because the feelings of the white middle and lower classes about social issues overwhelmed their economic considerations.

But something interesting happened this year: high levels of minority and young voter turnout, together with an increased Obama-tilt among all voters earning less than $50,000 a year, routed the GOP. In one sense, the election represents the triumph of the Reverend Jesse Jackson and his “Rainbow Coalition.” The Reverend Jackson was the first serious challenge of a black man for the presidency, and with his Rainbow Coalition, he ran for the Democratic nomination in 1984 and in 1988, with a platform that represented an anthology of progressive ideas from the 1960s. He attracted a large number of supporters, many of them from the white working-class. Each time his movement looked like it was gaining electoral traction, the Democratic Party establishment would invariably mobilize against him and elect feeble white liberals – Mondale and Dukakis – who plummeted to defeat by Reagan and George Bush Sr. Continue reading

An MMT Fiscal Responsibility Narrative: Some Truths After Crowd Sourcing Revision

By Joe Firestone

Many MMT posts and other writings on fiscal responsibility, including my own, focus on the myths of neoliberalism, pointing out why they are myths and developing an alternative MMT perspective in some detail. Off  hand, and I may have forgotten something, I couldn’t think of a brief positive MMT narrative related to fiscal responsibility containing primarily the truths, rather than the myths. Continue reading

Modern Money and the Altruistic Gene

By J. D. Alt

In his recent book The Social Conquest of Earth, Edward O. Wilson lifts a corner of human history and reveals what appears to be a hidden mechanism of its intricately complex guidance system. It shouldn’t be a surprise this inner clock-work is genetics. What is surprising is to see the relationship between this genetic mechanism and the monetary debate that is unfolding as we speak. Continue reading

Wall Street urges Obama to commit the Great Betrayal

By William K. Black
(Cross-posted at Benzinga.com)

Greetings from the Third Annual Kilkenomics Festival in Kilkenny, Ireland.  The Irish bubble (as a percentage of GDP) was twice as large as the U.S. bubble.  I’m returning to the U.S. to provide economic commentary for al Jazeera’s election night coverage.  (Yes, I voted via absentee ballot.) Continue reading

An MMT Fiscal Responsibility Narrative: Some Truths

By Joe Firestone

Many MMT posts and other writings on fiscal responsibility, including my own, focus on the myths of neoliberalism, pointing out why they are myths and developing an alternative MMT perspective in some detail. Continue reading