The title of this short book, only 130 pages, Building the New American Economy: smart, fair, & sustainable by Jeffrey D. Sachs with a foreword by Bernie Sanders (Columbia University Press, 2017) is unfortunately misleading. There is much here about the new economy. The misleading part is that there is very little about its construction, the building of the new economy.
Sachs covers many important issues in a thorough, efficient fashion. If you need a primer or a tune up about the economy this is a good place to start. These include: investment in our society, infrastructure, Federal budget, income inequality, healthcare, energy, military and the empire (not his phrase), and innovation. If you have been reading my postings over the last 5 or so years much of this will seem a bit deja vu. Continue reading →
Progressives have to declare class war as a central strategy. Otherwise we will all be sitting at the dinner table basking in our glorious diversity with nothing to eat.
For many good reasons identity and diversity have dominated our politics for decades. Progressives celebrate its expansion and Republicans and their brethren on the right pretty universally engage in either dog whistle or outright racist politics.
Simultaneously the rich and corporations have been fighting a class war. They have succeeded beyond belief. As is well known, for 90% of the population real incomes have been flat for the past 40 yrs. Meanwhile, the rich and corporations have gotten fabulously rich. Richer than at any time in history. And, to make things worse they have done this while hiding behind free-market (neoliberal) ideology that has impoverished the government and the public sphere of our lives. Our infrastructure is crumbling, education is outrageously expensive, sending many students to decades of indebtedness. Our health system costs more than twice any of our developed country cohort and delivers third world results.
Progressives, time to fight back. Diversity and identity without a fair share of the pie is not going to make you happy.
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”.
President Reagan was not the originator of this central trope of free-market (neo-liberal) politics, but he famously said in his first Inaugural Address in 1981, “Government is not the solution to our problem; government is the problem.” President Clinton, a Democrat, continued this theme during his terms culminating the the deregulation of the financial industry in 1999 setting the table for the collapse of 2008 and the Long Recession. Listening to almost any discussion by Republicans and Democrats you can find this theme, “If just get government out of the way, free markets will solve our problems.”
This ideology is ahistorical, counter-factual nonsense. It is asserted without any basis in fact. It is rhetorical cover for policies that have led to the vast enrichment of the wealthy and corporations and the impoverishment of everything public. Continue reading →
The values of capitalism, especially as expressed through free market (neoliberal) ideology, have come to dominate how we organize our lives. Silicon Valley and the tech sector is busy celebrating the “gig” economy. Companies have simply stopped hiring employees and now conduct much of their work using “temps”, “1099ers”, part-time contract workers. The companies, and the champions of free markets, tout this as a wonder of flexibility and opportunity. For gigers not being recognized as an employee means that they lose out on all sorts of direct and indirect benefits long part of the contract between employers and employees: minimum wages, overtime benefits, health insurance, workers compensation for those hurt on the job, unemployment benefits for those who are laid off, proof of employment for those trying to rent or get a loan, and, perhaps most significantly, lower taxes (workers who are “independent contractors” have to pay the employer’s share of payroll taxes, thats an additional 7.7%). Part-time employees have no regular schedule, in many cases no regular place of work, no regular contact with other employees, or even a job at all. They are the ultimate commodity, entirely replaceable with very few contingent liabilities for companies.
American higher education long ago became an essential part of the corporate state and therefore focus for application of free market ideology.1 As the accompanying chart shows, in 1975 the contingent faculty (full-time non-tenure, part-time and graduate assistants) made up 55% of the academic workforce. Continue reading →
By corporate state I mean the current situation in which our government, rhetorically democratic, is really the captured entity of the rich and corporations. [↩]
As the presidential campaign of 2016 fades away and the Trump Era begins, we find a national scene without any real discussion of the facts of jobs and unemployment and what the future might bring. Trump and others talk about bringing manufacturing back to the US. No plan, plausible or otherwise, has ever been mentioned for how to accomplish this. The Democrat are hardly better. Much has been made and continues to be made of the role various trade agreements have had in the loss of manufacturing jobs. Even Bernie Sanders can do no better than talking about creating millions of good paying jobs through a national infrastructure program. It is laudable to fix the infrastructure that has become third world, but that is not a long-term jobs strategy.
There are structural changes in the capitalist economy that must be understood and accepted as fact. Lets begin with a few examples. US steel production, one of those lost American industries, is now as high as it was at the beginning of the 1960s. Continue reading →
The Trump election debacle demonstrates the bankruptcy of the current leadership of the Democratic Party. Faced with a foe who has engaged in serial bankruptcy as a business strategy, is a notorious know-nothing bully with a very sensitive ego, and is best known as the red-faced guy on reality TV who says “You’re fired”, they could not come up with a candidate and story to retain their core voters in the old rust-belt states. Continue reading →