The real problem with the economy

I'm not an economist, yet I know that the most vocal economists these days are not shooting straight with us. You can see it in their faces and you can hear it in their voices. Niall Ferguson is a professor of history and a professor at the business school at Harvard. His analysis of our economic problems rings true to me. He starts with the premise that we are in hock up to our eyeballs and we are in massive denial that this is the real problem:

The harsh reality that is being repressed is this: the Western world is suffering a crisis of excessive indebtedness. Many governments are too highly leveraged, as are many corporations. More importantly, households are groaning under unprecedented debt burdens. Average household sector debt has reached 141 per cent of disposable income in the United States and 177 per cent in the United Kingdom. Worst of all are the banks. Some of the best-known names in American and European finance have balance sheets forty, sixty or even a hundred times the size of their capital. Average U.S. investment bank leverage was above 25 to 1 at the end of 2008. Eurozone bank leverage was more than 30 to 1. British bank balance sheets are equal to a staggering 440 per cent of gross domestic product

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Republicans Reveal Attitude Toward The Future

The rhetoric that accompanied Obama's election included much from the downsized Republicans about looking forward to working with the new president and coming to grips with national problems in the spirit of a fresh start. However, the stimulus package---which may well be too big---has forced the Republicans to declare themselves. We're hearing a lot about wanting more tax cuts---almost exclusively tax cuts---in lieu of spending in the form of direct aid. This is a Republican mantra now. Tax cuts. The question, of course, is really this: what good are tax cuts when you're already buried in debt? Granted, it frees up (theoretically) money for critical and immediate payments, but if the idea is to put people back to work tax cuts are not the solution. Because corporate America is mired in over-leveraged debt burdens that must be paid down before something mundane like hiring can happen. Tax cuts, therefore, won't have any kind of immediate impact on the jobless rate. In time it might, depending on several other factors, the most significant of which would be a newfound corporate sense of ethics which would prevent them from continuing the pillage of their own capital for all the things that have gotten us into this mess in the first place. Labor is at the bottom of the ladder of what they see as important---hence the tongue lashing Obama gave them for paying out bonuses while asking for federal aid. As for working people? What good does a tax cut do someone who isn't paying taxes because he or she has no income? But this was to be expected. It is an attitude born out of the mixed priorities of what has become the Right, one of which is fiscal responsibility (I used to support Republicans on this count) the other of which is the more Libertarian view (borne of the Grover Norquist faction) that government is always the problem and must be pruned back radically. Hence tax cuts, in order to curtail revenues in order to force the government to reduce its size and, one must realize, its influence.

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The age of agnotology: culturally constructed ignorance

Robert Proctor is a historian of science at Stanford who has pointed out a bizarre modern phenomenon: the coexistence of easily available factual information and ignorance. That is the subject of Clive Thompson's article in Wired:

He has developed a word inspired by this trend: agnotology. Derived from the Greek root agnosis, it is "the study of culturally constructed ignorance."

As Proctor argues, when society doesn't know something, it's often because special interests work hard to create confusion. Anti-Obama groups likely spent millions insisting he's a Muslim; church groups have shelled out even more pushing creationism. The oil and auto industries carefully seed doubt about the causes of global warming. And when the dust settles, society knows less than it did before.

"People always assume that if someone doesn't know something, it's because they haven't paid attention or haven't yet figured it out," Proctor says. "But ignorance also comes from people literally suppressing truth—or drowning it out—or trying to make it so confusing that people stop caring about what's true and what's not."

After years of celebrating the information revolution, we need to focus on the countervailing force: The disinformation revolution.

Thompson suggests that we need to develop more tools like Wikipedia to allow society as a whole to "build real knowledge through consensus," thereby allowing us to expose systematic lies for what they are.

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The American war against telephone poles

In a short article entitled, “The War on Telephone Poles,” the February 2009 edition of Harper's Magazine includes a fascinating excerpt from an essay by Eula Biss, which was originally titled "Time and Distance Overcome” as it appeared in the Spring issue of Iowa Review. Biss's article is a terrific example of the human tendency to resist long-range change that would substantially improve the community as a whole. As she clearly documents in her essay, many people ferociously opposed the erection of telephone poles back in the 1880’s. Whatever their stated reasons (aesthetics and defense of private property were often argued), the real reasons for resisting telephone poles were timeless: fear of change combined with a warped sense of the importance the individual in relation to his or her community. The Biss essay reminds us that Americans have long been quite capable of harpooning critical community-building endeavors in the name of individual freedom. We don’t fight telephone poles anymore, but this destructive tendency is one we still see in modern day America. Only a small bit of Biss's essay is available online. The basic idea presented by her essay is that in the 1880s, numerous people (including elected officials and newspapers) ferociously opposed the erection of telephone poles. They argued that telephone poles were ugly. They characterized telephones to be considered playthings of the rich.

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Rejection of evolution across the pond

Great Britain is catching up to the U.S. when it comes to the rejection of evolution by natural selection.  Consider the following from The Guardian: Half of British adults do not believe in evolution, with at least 22% preferring the theories of creationism or intelligent design to explain how the…

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