Gordon Gekko Lives – Tom Rossi

I’ve been wondering lately (okay, for many, many years) how people can still hold onto conservative ideas about the economy. Social issues are one thing – there is a legitimate debate about abortion, for example, but for some people, economics seems to be even more of a religious issue than that. People just hold onto their beliefs, despite a wealth (pun intended) of evidence to the contrary.

To track down some of the reasoning of the followers of the tired, old religion of conventional, “free-market” economics, I interviewed démodé economist Charles “Chipmunk” Griedesgud at the Gordon Gecko Center for Economic Satire in Slashington D.C.

Presented here are some highlights of the interview. The entirety of the interview will be published in book form by the same publishers that put out Bill O’Reilly’s weekly treasures. It will be called, Killing… something or other.

Me: Thank you for allowing me to interview you, Mr. Griedesgud.

Griedesgud: Please, call me “Chip”.

Me: Fifth generation at Yale?

Chip: Exactly.

Later…

Me: Ha ha! I’m sure your cat didn’t see THAT coming! Oh… Ahem. The main thing I’ve been wondering about, Chip, is how people can still believe that giving corporations big tax breaks leads to more jobs. The corporations don’t seem to create jobs anymore; they just build factories overseas or buy robots to do the work. Don’t people know these things?

Chip: If we cut taxes on corporations, they will build factories and make jobs… in China and Mexico.

Me: How does that help us?

Chip: But then, you see, the Chinese and Mexican workers will become more affluent.

Me: Uh huh.

Chip: Meanwhile, American workers will accept lower and lower paying jobs…

Me: Waiting for the good part.

Chip: …which will eventually allow them to make the commodities that are demanded by the newly affluent foreign workers.

Me: Yeah. Great.

Chip: So, it still trickles down; it just might go through a couple of extra steps.

Me: Wow. I can’t understand how I never thought of that.

Chip: I sense a little sarcasm in your voice.

Me: Me? Nooooooo.

Chip: Would you, instead, have no job creation at all? I mean, if we balanced things more toward the mythical “middle class,” then there wouldn’t be the concentration of wealth at the top that it takes to start the projects and businesses that do just that.

Me: But isn’t that exactly what happened between the 1950’s and the 1970’s, America’s greatest period of economic growth and shared prosperity? The progressive tax structure taxed the super-wealthy and their corporations heavily, and they all kept right on growing anyway, along with the well-being of their workers and the workers’ families.

Chip: That approximately three-decade period was essentially an illusion of economic bliss. In reality, the so-called “middle class” was stealing from the providers – the wealthiest Americans, who could have built a much LARGER economy, and created even more jobs. They did this through forming alliances known as “unions” and through other underhanded methods.

Me: Those bastards!

Later…

Me: So, what could we expect if we were to follow your prescription, which seems to be the way we’re headed, anyway?

Chip: Well, economic growth and prosperity, of course! Our economy could be growing like the Chinese! And why not?

Me: Do you mean the Chinese economy, or the Chinese population?

Chip: Take your pick.

Me: But won’t this scenario mean that those countries make the same “mistakes”, as you call them, that we made? And won’t they be hurting their economies?

Chip: Yes! That’s exactly what we want! There are two ways to look at winning a competition – you can perform better than the others, or they can perform worse than you!

Later…

Me: So, you say we could head into a period of fantastic economic growth and prosperity. But the “middle class” can’t share in that prosperity, lest they sabotage the whole process.

Chip: That’s exactly right. You asked me about the benefits before: the average income would rise beyond anything we’ve seen.

Me: But wouldn’t that just be a result of the outliers? Wouldn’t the income median and mode be dismally low?

Chip: Well, thanks to years of effort, nobody knows what those even mean. We’ve trained people very effectively to think that averages are everything. We’ve kept telling them about the average income in America being so high and we even invented a term called “GDP per Person” that throws them way off. Complaining about your income just makes people feel ashamed now.

Me: Wow. Just… wow.

Later…

Me: Well, thank you, Mr. Griedesgud, for the interview. I suppose you’ll be going back to work for the rest of the day?

Chip: Work? What work? This story hasn’t changed since 1890! I’m going to dinner with some lobbyists at the “Oval Room”. I love a restaurant with a punny name!

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

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Will Obama Walk the Walk? – Tom Rossi

In now two-term President Obama’s inauguration speech today, he certainly “talked the talk” of a progressive, but will he “walk the walk?”

In some ways, he certainly already has. He ended “don’t ask, don’t tell,” he came out in support of marriage rights for all, he appointed two women to the Supreme Court, he finally ended the war in Iraq, and a few other things.

But President Obama has been quite conservative on some big issues. He’s, if anything, increased the country’s war activities, used pilotless drones to assassinate people from the sky, increased spying activities on our own citizens, raided state-legal medical marijuana dispensaries, deported many more aliens than Bush, refused to even consider meaningful legal action against the robber barons that screwed the middle class and our whole economy, and kept merrily in place the same economic voodoo shamans that President Bush had… the same people who enabled the robber barons in the first place.

And all this while supposedly being a communist. Wow!

What I can’t help but wonder is, if Obama is a progressive, why has he hidden it so well, during his first term? I know the conventional thinking – he had to stay near the so-called “center” (which is far to the right of the center, even 15 years ago) in order to have a good shot at re-election. But why? What if he hadn’t been re-elected? Then we would have gone from center-right to far-right… and that means that every one of us except the 1% would have lost.

In addition, Obama now has just four years to accomplish anything, and most of the efforts and attention will be on what should properly be called “gun-mass-murder control” (not “gun control”). We have seen not one hint of consideration, by Obama, to the fact that our present economic pathway is still the same one that led to the current depression.

And it is a depression. Recessions are, by definition, short-term blips – speed bumps, really, in the path of our economic progress. Depressions mean long-term unemployment and long-term troughs in things like the housing market. We’ve had millions of people unemployed for a period of more than a year. That’s a depression.

We need a fundamental realignment of our capitalism away from concentrated profits and diffuse risks to stability and full employment. This is not “wanting ‘stuff’ from the government,” it’s wanting the government to stop working against the people. We’ve heard lots of talk about helping the middle class. Let’s see some real action.

Will the real Obama please stand up?

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

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Concord Hymn Revisited: Story Telling for Social Change

…here once the embattled farmers stood, and fired the shot heard round the world…

Ralph Waldo Emerson wrote “Concord Hymn” in 1836 for a dedication in Concord, Massachusetts to honor the men who gave their lives at the Battle of Lexington and Concord (April 19, 1775), the first battle of the American Revolution.

Travel left 3,000 miles to a spot just outside the glamour of San Francisco Bay. Here sits Concord CA, a small working class city at the weathered heels of Mt Diablo and flanked to the north by the bay’s brackish waters that glow in the dull flames of oil refining. At its southern flank rests the plastic town of Walnut Creek packed with brand-o-phile stores doing their part to fuel the debtor-nation.

Photo by Ted Hamiter  http://www.flickr.com/photos/trhamiter/2890931015/

Step forward to the year 2065, an author is honoring a movement and the date of December 21, 2012 with a poem. Much like the village of Concord MA on the outskirts of Boston, the non-descript city of Concord CA, would eventually become known as the marker of Economic Revolution.

The year 2011 was rough on the middleclass and the future didn’t look bright. In early 2012 the economy was still stagnant, China and India were consuming more energy and US gas prices hovered around $6 per gallon. Thirty years after Reagan devastated energy policies the country still had no cohesive plan. Because 2012 was an election year, Republicans were continuing the transfer of wealth to the upper-class and Big Business. The outlook for the common man was bleak.

A small group of frustrated citizens gathered and outlined a socially-just plan that would improve the living standards for all Concordians; the plan was published on the Mayan Time of Transition, December 21, 2012. The plan had a one-two punch with the first hitting immediately and the second coming about ten years later. For the initial phase, the group endorsed the Transition Town movement that focused on local economies and sustainability.

Within ten short years the city was completely transformed:

1)      There was an excess in local organic vegetable and protein food production.

2)      Unemployment was at a negative 15%.

3)      90% of suburban polluting lawns were converted to edible gardens.

4)      Water consumption dropped by 70%.

5)      Rooftops were retrofitted for algae production and then harvested for liquid energy conversion. The city became a green oil producer.

6)      There were no food deserts in any part of the city, fresh food was available within a five minute walk, children and adults enjoyed real food and obesity was below 15%.

7)      The environment was being regenerated and the city was carbon negative.

But the citizens weren’t satisfied. They knew their Garden of Eden was in danger. Sustainability and a happy healthy society are the enemy of Big Business and financial institutions that need an ever-expanding debtor economy to survive. The evil empires and their crony politicians would be coming.

By now the Transition Movement was sweeping the nation. It was time to release the final punch; the knockout punch that would put Big Business on the canvas where it belongs, supporting citizens and not controlling them. On January 1, 2023 most Concord citizens stopped paying loan obligations for homes and cars. They used social media to encourage the nation to do the same. Banks, Wall Street and insurance were crippled—the robber barons were forced to act responsible for the first time since the early1980s. The redistribution of wealth–back to the middleclass–had begun.

…here once the embattled farmers stood, and fired the shot heard round the world…

-Roger Ingalls

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.