markorton

Trickle-Down Returns to Enrich the Rich

As the rest of us are recovering from the outrageous Senate healthcare bill released this week, Trump and the Republican Party are having closed door meetings to shape their “reforms” to the Federal tax system. Get ready for a resurgence of rhetoric about how enriching the rich will generate a surge in economic activity that will raise all boats. There will be lots of talk about “pro-growth tax reforms”. This is the return of 1980s trickle-down economics. The basic notion is that if you put more money in the pockets of the rich and corporations they will invest in creating new businesses and jobs. Thus the money trickles down to the bottom. Trump and his Republican Party allies have already claimed that this will increase the growth rate of the economy from its recent typical of 1.5% to 2% annual growth to over 3%. The difference of this one percent has enormous implications. At 2% growth the economy doubles in 36 years. At 3% growth it doubles in only 24 years.1

Trickle-Down – The Reality 

BUT, no economist, banker, or corporate chieftain not on the payroll of Trump and the Republicans believes this will happen. Leaving aside all sorts of analysis about demographics (aging population), technology, and global competition, history and current events provides a fairly comprehensive rebuke to these trickle down cover stories for the Republican give backs to the rich and corporations. Trickle-down economics was invented in the early 1980’s to explain the wisdom of Ronald Reagan’s tax “reforms”. Much space was taken up with displays of Prof. Arthur Laffer’s demand curves that were passed off as proof from the academy that enriching the rich and corporations would unleash a new wave of economic activity. Nothing like that happened in the 1980s. Nothing like that happened in the first decade of this century after Bush II’s big tax cuts.2 And most recently in Kansas, the Republican dominated State legislature had to override the governor’s veto of tax increases after a 5 year experiment there with trickle-down drove the state nearly to bankruptcy.3

Nevertheless, get ready for another round of bull shit Republican propaganda about “pro-growth tax policies”, unleashing the over-regulated, over-taxed job creators, and a great surge in economic growth. The forces of free-market capitalism just need to be freed from the shackles of government. You will here all of this and more. The media will continue to do its job of repeating all of this. You need to be clear that the vicious Republican Party is at work for their masters among the rich and corporations. There job is making sure that the 40 year stagnation in incomes for the 80% will not change course and the flood of wealth will continue to those at the top. 

 

  1. This is the rule of thumb exercise. To calculate how many years a given percent of growth or interest will take to double the initial amount you divide 72 by the growth rate – e.g. 72/2=36. []
  2. See “Trump’s Big Tax Cut Is Unadulterated Trickle-Down Fundamentalism” by Justin Miller 4/25/2017 at The American Prospect []
  3. Read “Epic fail of Kansas’ tax-cut plan offers a lesson for us all” by Eric Zorn in the Chicago Tribune 6/20/2017 []

The Republican Party – vicious at the edges

A brief review of how the so-called moderates and the fundamentalist right wing of the Republican Party are reacting to the Senates healthcare bill demonstrates how fundamentally vicious and immoral the whole party is.

Though facts may be out of style lets just take note that we live in one of the wealthiest countries in the world. Also take note that the rest of the developed world provides universal high quality healthcare at roughly half the cost or less of our system which ranks near third world in performance.

The “Moderates”

Susan Collins, Senator from Maine, finds solace in what she perceives to be increases in support for low income people but is “concerned about the long-term cuts to Medicaid funding.” Senator Dean Heller of Nevada is likewise concerned about Medicaid cuts. Senator Lisa Murkowski of Alaska doesn’t want Planned Parenthood defunded. Senator Rob Portman of Ohio- “I continue to have real concerns about the Medicaid policies in this bill….”

The Conservatives

Senator Rand Paul of Kentucky never saw anything except the military and police to be the proper subject for government. Senator Ted Cruz of Texas wants outright repeal of Obamacare and lower premiums. Likewise for Senator Mike Lee of Utah.

Vicious to the Core

Here we have a bill that is designed to throw millions of people out of the healthcare system, give the rich a huge tax break, allow doctors, hospitals, insurance and drug companies to continue to set prices and make huge profits while delivering lousy healthcare to only part of the population.It throughs the definition of basic healthcare into the free for all of the mostly Republican dominated state legislatures. This bill continues the decades long assault by the Republican Party on women. Beyond the perpetual war against women’s right to choose the bill defunds Planned Parenthood entirely. Even the recent upsurge in opioid addiction among white people gets the short end of the dollar. 

Despite the outrages of this bill (and its brethren bill in the House),  the so-called moderates are just complaining at the edges. No one in the Republican Party is talking about how to solve our healthcare disaster. The Republican Party is not thinking of how to improve healthcare at all. They are fulfilling the imperatives of their anti-government, pro-rich program. While the rest of the developed countries in the word devote 8-10% of the economic output to healthcare we spend 19%. While the rest of the developed world manages to provide healthcare to every single person with top flight results our healthcare system ranks 48th in longevity and 54th in infant mortality. Near Third World results.

None of this outrages the vicious Republicans. They hate poor and middle class people, they hate black and brown people, they hate government, they love to make the rich richer. That is the essence of the Republican Party.

Brandon Weber, new to me but clearly troubled by similar incongruities, offers up the following comparison with the UK health system:

 

Vicious Republicans Not Trump Are The Problem

With today’s release of the Senate’s version of the Republican healthcare bill we see clearly that the Republican Party is a vicious, immoral pack of angry white people – mostly men it would appear from the faces representing the party in the media (see below). No matter how you slice up this legislation it says clearly that Republicans want to punish poor and middle class people for their slovenly, lazy, unhealthy lifestyles, and reward the wealthy with a large tax holiday. The healthcare industry gets to continue charging outrageously high prices while providing last in the pack healthcare outcomes. 

Trump is a side-show

The problem is the Republican Party bought and sold by the wealthy and corporations. The Republicans are busy destroying families through their attacks on healthcare, education, family income, and government protections. The Republicans are busy mouthing talk about job creation while doing nothing to create jobs, just more rhetoric about job creators and government regulations. The Republicans are busy doing nothing to assure that a person working a full-time job can achieve a livable standard of living. The Republicans are busy destroying the environment through their actions internationally and at the EPA. The Republicans are busy destroying women’s lives through their attacks on reproductive rights and women’s healthcare. The Republicans are busy encouraging white supremacists and racists in general through their endless pandering about immigration and Muslims. The Republicans are busy destroying the very fabric of our society by completely failing to maintain our infrastructure and decrying any action by government at any level to invest in our common future and protect us from the attacks by corporations on our health and well-being.

Meanwhile the Democratic Party is still dominated by the same old people and the same old rhetoric. They need to declare war on the ruling class and its Republican Party. There should be no more talk about pleasant bipartisan legislative efforts.

Forget about Trump!

We need to defeat the Republican Party and take back the country from the wealthy and corporations.

Slavery in Hudson and nearby – continued

My earlier post on this topic was picked up by Gossips of Rivertown. That brought a reference from David Marston to a new source: Radical Cartography where the results of the 1790 Census (the first census) provided further data on slavery in our region and elsewhere. Here are a few examples. In 1790:

  • Hudson – total population of 2,584 with 2,364 free whites, 27 free non-white, and 193 slaves – 7% of the population.
  • Kinderhook – total population of 4,666 with 4,027 free whites, 6 free non-whites and 638 slaves – 14% of the population.
  • Rhinebeck – total population of 3,649 with 3,175 free whites, 66 free non-white and 421 slaves – 11% of the population.
  • Catskill – total population 1,885 with 1,667 free whites, 8 free non-white and 365 slaves – 15% of the population.

It is clear that though slavery in the North was not the dominant economic engine that was true of the South, slavery was present and visible on a day-to-day basis.

Click on image to go to Radical Cartography and the interactive map.

Slavery in Hudson and Columbia Cty NY

Students presenting their work at HAL.

It is doubtless a fact that most Northerners, including the writer, think that slavery in America was a Southern problem. In the North slavery was an occasional institution, or so we think.

A week ago on Thursday 6/8/17 I attended a program at the library, “Abolition and Women’s Rights in Local History” presented by the students of Hudson Community Schools’ Writing Center at the Hudson High School. More about this project here.

“James W. C. Pennington” by Cecille Ruiz – click to see full size image

The bulk of the program revolved around presentations by the students of their research and creative projects about slavery, abolitionists and women’s rights activists of the 1830s-1850s in upstate NY. The word and image projects are on display in the library now.

Slavery in Hudson and Columbia County

But, I want to focus on just one aspect here. The program opened with readings of notices of runaways slaves from the Hudson River Valley. Many were notices from slave owners in Hudson and Columbia County dating roughly from 1795 to 1840. The source of these notices is In Defiance: runaways from slavery in New York’s Hudson River Valley, 1735-1831 ((Stessin-Cohn, Susan, and Ashley Hurlburt-Biagini. In Defiance: Runaways from Slavery in New York’s Hudson River Valley, 1735-1831, 2016.))  It is available in the library.

One hint about the deep history of slavery in our region is the fact that over 50% of the runaways spoke both Dutch and English.1  This is clearly an indication that they lived here long enough to learn two languages.

Here are a few samples from the book: (click on images for full size)

 

  1. p324. Stessin-Cohn, Susan, and Ashley Hurlburt-Biagini. In Defiance: Runaways from Slavery in New York’s Hudson River Valley, 1735-1831, 2016. []

Why Are There 16 Producers on House of Cards?

OK you Hollywood moguls and wannabes, what does a producer do? What do all of the variants do? Executive Producer, Associate Producer, Managing Producer, Supervising Producer, Co-Executive Producer?? How do they stay out of each other’s way?? How much are they paid, salary and residuals?? Should this be my next career stop??

Trump’s Innovations in Governing – the cabinet meeting

…….. at the Cabinet meeting. Thanks to CNN.

Just when you might be thinking that Trump should be paying attention to the burgeoning scandals and corruption that surround him; perhaps today he might be thinking about his next Twitter storm; how he might respond to the forthcoming lawsuits from folks in DC and Maryland claiming that he is violating the emoluments clause in the constitution.

No, he surprises us with another innovation in governing. He has turned his latest Cabinet meeting into a round of campaign rhetoric and sycophantic adulation and lies. Listen to the 11 minute video from this epic meeting on CNN, “Trump Meets with Cabinet, including Sessions“. Smacks of Trump on the Celebrity Apprentice.

 

The Environment, Trump, Koch Brothers & Big Money

Trump’s recent announcement that he is leaving the Paris Climate Accord and his ongoing gutting of the Environmental Protection Agency should come as no surprise given his billionaire class Cabinet and advisers.  Now it is clear that the Koch brothers have been at work. They are notorious for their Libertarianism, election buying and ownership of huge coal mining corporations. 

Today (6/5/2017) on the New Yorker magazine website Jane Mayer wrote in her article, “IN THE WITHDRAWAL FROM THE PARIS CLIMATE AGREEMENT, THE KOCH BROTHERS’ CAMPAIGN BECOMES OVERT” of the now publicly visible campaign by the Koch brothers and many others to make their decade’s long campaign to deny climate change bear new fruit in public policy. More evidence that the plutocrats are now so secure in their control over our politics and the government that they can come out of the shadows and rule directly through Trump.

BTW – Jane Mayer spent 5 years investigating big money and particularly the Koch brothers. The resulting book almost reads like a cloak and dagger mystery excepting for the very real people and money at play: DARK MONEY: The Hidden History of the Billionaires Behind the Rise of the Radical Right by Jane Mayer (Doubleday NY 2016) – reviewed in the NYTimes 1/19/2016 by Alan Ehrenhalt.

Neoliberalism Revisited

A return to a topic first posted 2/10/2017.

Neoliberalism – a term that needs never to be used

February 10, 2017

Dollars and Sense has been around since the 1970s. Always a source of well researched critiques of capitalism. I recently, after a more than 30 year hiatus, re-upped a subscription.

Dear Dollars & Sense,

Your new issue showed up the other day with the word “neoliberalism” in bold type on the cover. The continuing use of this term is not helpful. When I first saw this word a few years ago I wondered how the word “liberal” and “neoliberal” are connected? Then, I remembered the little I can recall about 19th century European political philosophy. Oh, its that liberalism that is new!

Really, outside of academic circles no one knows what this word means. Most in my circle find it off-putting, obscure and boring.

Free Market Religion

I prefer to refer to this ideology as “free market religion”. “Free market” is a widely used term as in “free market capitalism”. And “religion” gets across the fact that this is a counter-factual pile of BS.

If you don’t like my term, come up with something better. Please stop using “neoliberalism”.

A Reply from D&S

2/22/2017 – Chris Sturr commented on New Issue!.

in response to Mark Orton:

……

Mark, this is something that we struggle with, but we have over the years decided that it is more important to call our current economic system by the name that left economists have tended to use. You’re right that its origins are academic, but other mainstream publications have been using it more and more (for example, The Guardian, Salon, Jacobin, and (as far back as 1990) The American Prospect.

Dollars & Sense authors have been using (and carefully defining) the term “neoliberalism” for years now (most recently in David Kotz’s two-part piece on the crisis of neoliberalism (here, but for years before that). We do try to explain the term whenever we use it.

Sasha Breger Bush’s cover story makes a careful argument that Trump’s economic policies do not signal an end to the free-market, anti-government policies of the neoliberal era, but do signal the end to its globalist orientation. She’s proposing that if he gets his way we will be entering a different economic regime, and she gives it the name “national neoliberalism.” It’s a bold and thought-provoking analysis and we wanted to use her new term on the cover. We recognize that downsides, but we think our readers are familiar enough with the term and those who aren’t will read on to see what it means.

You suggest calling neoliberalism “free-market religion” (which reminds me of Bill Black’s term “theoclassical economics”–see for example here). I think that works when “neoliberalism” refers to free-market ideology. But “neoliberalism” also refers to an economic system that results after years of policy justified by free-market ideology. You’re right that the ideology is BS, and the economic set-up that results from years of “free-market” ideology is not really characterized by “free-markets” (as Breger Bush show’s, it’s just as much about corporate capture of government to promote ruling-class interests at the expense of everyone else). But the system itself is not BS and it deserves a non-pejorative name. The name that left economists have come up for it is “neoliberalism.”

Anyhow, you are surely right that it is offputting to some people, and that’s why we’ve struggled with whether to use the term. But we think the value of getting people familiar with the name of the economic system we’ve been living under outweighs the downsides of using the term. Your comment is a reminder that we need to do better about explaining what we (and left economists) mean by the term.

A Further Thought

This is of course an interesting addition to my knowledge of the thinking at D&S about the language they employ. But, even this discussion further supports my conviction that we need to develop a more robust accessible language to use in public discourse about one of the most important issues of our time. I am quite certain that the readership of D&S is not confused or put off by the term “neoliberalism”.

The audience of my concern is the average American who has been subjected to a sustained campaign of free-market thinking from the Republicans, most Democrats, the mass media, corporations, the academy…..not to mention Wall St. for the past 40 years. If we want to offer an alternative analysis we need direct language that does not refer to thinking and issues from 150 years ago that invites immediate suspicions that those speaking are academics and intellectuals who by definition are not connected to the day-to-day realities of American life.

Movie – War Machine – a misplaced parable

Netflix has just released War Machine onto the streaming media waters. This movie fits into the long tradition of American media mostly puffing up our military exploits or turning them into light tragi-comedy.  Brad Pitt, applying the acting style of a trimmed down George Clooney, portrays the fictional General Glen McMahon. Broadly and obviously based on the story of the real General Stanley McChrystal who took over the War in Afghanistan in June 2009 only to be ousted in June 2010 after a profile appeared in Rolling Stone Magazine revealed much foolishness and derogatory comments about President Obama and VP Biden. The movie has its comedic moments and the very broadly played General MaMahon is bound to either really annoy those enamored of the US military or fulfill the image of buffoonish generals that others may prefer.