Analysis of the government’s economic stimulus programs
This is how the government's economic stimulus program looks on the street. You'll find short answers and succinct advice here.
This is how the government's economic stimulus program looks on the street. You'll find short answers and succinct advice here.
There are four subjects the polite American avoids discussing in public: Politics, Religion, Sex, and Money. The ostensible reason for this taboo is to avoid offending anyone. But here I argue that this over-correctness is a causative factor in the decline of a civilization. Let's do money, first. As far as I know, this is a particularly American obsession. My European parents had to learn not to talk about money when they came to this country. Other places, the question, "So, how much do you make?" is as normal as "Are you married?" But in the U.S.A, we maintain a fiction of a classless society. We ask the same question only obliquely: "Where did you go to school?" is a good indicator of family income and social position. It is to the advantage of the landed class employers that their serfs employees not compare incomes, as well. By not allowing people to honestly gauge their economic value, they stay insecure. And insecurity leads to all manners of submissive behaviors, shoring up the security of the ruling classes, both secular and religious. Sex is a more generally repressed topic. There is no stronger drive, yet we must never directly say what we feel about it. Western churches even teach that one should deny and ignore the strongest drives within ourselves, leading to all sorts of perverse (read as counter-social) behaviors. To discuss it in public would allow people to see how normal their lusts really are, removing a major source of insecurity. Minor curiosities would not blossom into obsessions and perversions. Such openness would reduce the influence of those very organizations that profit from its repression, like churches and (other) marketing firms, whose urgent short-term goals are only occasionally and accidentally in line with continuing our civilization. Religion is a big one. People wear "subtle" symbols to let others of the same brand know they can be approached on the subject. The third eye, a cross or fish, a Koranic verse, and a star are some of the more obvious "secret" symbols. But it is a major faux pas to overtly declaim about your own faith to someone who may not agree. Unless, of course, the purpose is to stir controversy or solicit, two disreputable (completely human) drives. Again, by not knowing when and to whom you may come out,one feels insecure. This gives the leaders the upper hand. Especially when they strive to sow divisiveness, as in malignant fundamentalist sects. Finally, politics. This is the least stringent of the social prohibitions. I think this is in part because the churches and marketing firms rule the field, anyway. In our land, there are basically two sides: The established American parties, and those who can barely tell them apart. The parties do have differences. One wants to conserve our resources, reduce capitalist predation, and protect the underclass in hopes of a better tomorrow, and the other wants government to protect the minorities (specifically the rich, the unborn, and corporations) and let God (or the invisible hand) sort out the others until the imminent judgment day. So it occurred to me that hiding from these basic topics destabilizes civilization. Social groups balkanize into small, trusted segments that define themselves by their perceived differences. Each of the 30,000 Christian sects publicly claim the sum of all members of all denominations as supporting them, yet privately know that most of the 30,000 others are wrong and hell-bound. We have been divided, and conquered. If the people knew where they stood, and knew where the leaders stood, we would have actual checks and balances as were envisioned by our founders. Without such things, our nation may well founder.
Based surveys by the Brookings Institute, Americans fervently want to believe that hard work pays off in America. They believe that you are not locked into a particular strata of social and economic mobility by the lot of your parents. Yet the evidence doesn't bear this out.
While cross-country comparisons of relative mobility rely on data and methodologies that are far from perfect, a growing number of economic studies have found that the United States stands out as having less, not more, inter-generational mobility than do Canada and several European countries. American children are more likely than other children to end up in the same place on the income distribution as their parents. Moreover, there is emerging evidence that mobility is particularly low for Americans born into families at the bottom of the earnings or income distribution.The truth is that the United States is a low-mobility country:
In the United States and the United Kingdom, about half (50 percent) of parental earnings advantages are passed onto sons. If trends hold consistent, it would take an average of six generations for family economic advantage to disappear in the United States and the United Kingdom.Paul Krugman sums it up: "[T]he right is winning economic debates because people believe, wrongly, that there’s something inherently moral about free-market outcomes." We Americans are dreamers, even when it blinds us to the need for real change. "American children are more likely than other children to end up in the same place on the income distribution as their parents." The real numbers contained in the linked report are real eye-openers. All of this was predictable. The Economist wonders where the anger is:
It's striking how little inchoate public rage has actually boiled to the surface in the rich world. Rising inequality, especially at the top end, combined with stagnating middle class incomes, has been a feature of the world for at least the past ten years. It's been two years since the biggest bail-outs and the rise toward double-digit unemployment. And the anger is...where? Europeans are demonstrating against budget cuts, but these are rarely explicitly directed at national plutocrats. In America, the language of the angriest is very similar to that of the plutocrats themselves. Indeed, the complaint that today's elite lack the noblesse oblige of the aristocrats of old, and are therefore risking public anger, seems to badly misread American public opinion. The middle class doesn't want hand-outs from condescending rich people. They want moralistic language and complaints about deficits.
Here's how the German magazine/website Spiegel sees the decline of America:
The Tea Party, that group of white, older voters who claim that they want their country back, is angry. Fox News host Glenn Beck, a recovering alcoholic who likens Obama to Adolf Hitler, is angry. Beck doesn't quite know what he wants to be -- maybe a politician, maybe president, maybe a preacher -- and he doesn't know what he wants to do, either, or least he hasn't come up with any specific ideas or plans. But he is full of hatred. And so is Dinesh D'Souza. Indeed, the United States of 2010 is a hate-filled country . . . This is the climate in the country leading up to the Congressional elections on Nov. 2. It isn't shaped by logic or an interest in rational debate. The United States of 2010 is a country that has become paralyzed and inhibited by allowing itself to be distracted by things that are, in reality, not a threat: homosexuality, Mexicans, Democratic Majority Leader Nancy Pelosi, health care reform and Obama. Large segments of the country are not even talking about the issues that are serious and complex, like debt, unemployment and serious educational deficits. Is it because this is all too threatening?Beware of the graphics accompanying the article. These statistics on the United States economy are not for the faint of heart.
William K. Black previously worked as an investigator of financial institutions during the S&L crisis. In a detailed article at Huffpo, Black laments the almost total lack of criminal prosecutions related to our recent financial meltdown. Here's the problem in a nutshell: "What has gone so catastrophically wrong with DOJ, and why has it continued so long? The fundamental flaw is that DOJ's senior leadership cannot conceive of elite bankers as criminals." Here's what we need to do about it:
Our best bet is to continue to win the scholarly disputes and to continue to push media representatives to take fraud seriously. If the media demands for prosecution of the elite banking frauds expand there is a chance to create a bipartisan coalition in Congress and the administration supporting prosecutions. In the S&L debacle, Representative Annunzio was one of the leading opponents of reregulation and leading supporters of Charles Keating. After we brought several hundred successful prosecutions he began wearing a huge button: "Jail the S&L Crooks!" Bringing many hundreds of enforcement actions, civil suits, and prosecutions causes huge changes in the way a crisis is perceived. It makes tens of thousands of documents detailing the frauds public. It generates thousands of national and local news stories discussing the nature of the frauds and how wealthy the senior officers became through the frauds. All of this increases the saliency of fraud and increases demands for serious reforms, adequate resources for the regulators and criminal justice bodies, and makes clear that elite fraud poses a severe danger. Collectively, this creates the political space for real reform, vigorous regulators, and real prosecutors.