imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

CopWatch LA

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List





IMC Network: www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech
printable version - js reader version - email this article - view hidden posts - tags and related articles

Austerity When Stimulus Is Needed

by Stephen Lendman Sunday, Mar. 03, 2013 at 11:19 PM
lendmanstephen@sbcglobal.net

class war

Austerity When Stimulus Is Needed

by Stephen Lendman

On December 31, 1933, The New York Times published John Maynard Keynes "Open Letter" to Franklin Roosevelt.

On November 25, 2008, the London Guardian republished an abridged text. It urged:

• "spend, spend, spend;"

• supply "cheap and abundant credit;"

• stress "speed and quick" recovery; reform can come later;

• focus on "increas(ing) the national output," boosting purchasing power, and "put(ting) more (people) to work;"

• "increasing aggregate purchasing power is the right way to get prices up and not the other way around;"

• undertake "a large volume of loan expenditures under government auspices;" at the same time, work cooperatively with business; and

• choose projects that "can be made to mature quickly on a large scale, as for example the rehabilitation of the physical condition of the railroads."

Roosevelt, in part, followed Keynes' advice. More was needed. Depression continued. End of decade war spending ended it.

Obamanomics is polar opposite FDR's. Cut, cut, cut, replaced spend, spend, spend. People needs get short shrift. Imperial priorities matter more. Do do corporate ones and benefits afforded America's rich.

Conventional wisdom is wrong. Economic policy is wrongheaded. Conditions are dire. Main Street's in protracted Depression. Austerity deepens hard times. Sequester piles on more.

Paul Craig Roberts calls America's economy "dead." Recovery is illusory. There is none. The worst is yet to come. More on that below.

"The consequences of a dead economy when the government is wasting trillions of dollars in wars of naked aggression and in bailouts of fraudulent financial institutions is a government budget that can only be financed by printing money," says Roberts.

"The consequence of (doing so) when jobs have been moved offshore is an inflationary depression." It can arrive when least expected. Forewarned is forearmed.

Roosevelt vowed to revive economic growth. Obamanomics prevents it. Don't expect media scoundrels to explain.

March 1 triggered $85 billion in sequestered cuts. They're automatic. Obama ordered them. He blamed Republicans. He lied. Throughout his tenure, he demanded them.

He wants America's social contract destroyed. Both parties share blame. Bipartisan duplicity targets Medicare, Medicaid, Social Security, publicly-funded pensions, food stamps, unemployment benefits, and other domestic programs. They're vital to sustain.

Initial cuts are for starters. Much more is planned.

The New York Times supports the worst of Obamanomics. It blames Republicans. "Why are (they) so happy when they should be ashamed," it said?

Left unsaid is Obama's slash and burn demands. He insists deficit reduction be made on the backs or ordinary people. He's been cutting social programs all along. He wants much more.

He's hardline and unsympathetic. TimesSpeak blames Republicans alone. Doing so turns truth on its head. The criminal class in Washington is bipartisan. Don't expect Times editors to explain.

Economic conditions are dire. Open-ended QE failed. Money printing madness doesn't work. America's economy is contracting. Markets pay no attention.

When asset prices detach from fundamentals, bubbles result. The more they inflate, the greater the eventual pop. Systemic failure looms. When is anyone's guess. Deficit cutting promises harder than ever hard times.

In Q IV 2012, America's economy stalled. Since 2007, no growth occurred. Weakness defines things now. Conditions steadily erode. Sequestered austerity accelerates the process.

So does raising the payroll tax. On average, household income takes a $1,000 annual hit. Spending is declining. Deficit cutting exacerbates it.

In Q IV 2012, business spending rose ahead of January 1 tax changes. It's slowing. Expect more going forward.

Progressive Radio News Hour regular Jack Rasmus says the deficit faces no cliff. America's economy does. Wrongheaded policies promise harder than ever hard times. He predicted it earlier. "Epic" recession conditions exist, he explains. They're worsening, not improving.

Wealth redistribution reached obscene levels. It exceeds "moral outrage," he says. It prevents economic recovery. It makes hard times harder.

Inequality defines America. Since 1979, America's top 1% tripled its share of national income. It went from 8% to about 24%. It continues rising.

In 1928, America's wealthiest got 22% of national income. Inequality today is greater than ever.

It's growing at an accelerating rate. It's contributing to America's decline. From 1993 - 2000, top earners got 45% of income growth.

From 2000 - 2008, they got 65%. In 2010, it was 93%. Before long, they'll get it all. They're doing fine. So are bankers and other major corporations.

From 1998 - 2007, corporate profits rose 10% a year on average. In 2009 and 2010, they increased 243%. Excluded are sheltered amounts offshore. In 2012, best guess estimates put them at $1.4 trillion.

Increased sales didn't produce profits. Cost-cutting did on the backs of workforces. Jobs, wages, benefits, and hours worked suffered. Productivity rose.

In 2011, profit margins reached their highest level in over 80 years. At the same time, federal, state, and local government tax cuts benefitted bottom line performance.

In less than 18 months, it doubled. It increased twice as fast as pre-tax profits. High income households benefitted proportionately. They did so through equity appreciation, dividends, interest, rents, and other ways they increase wealth.

In contrast, ordinary people lost out. Increasingly they're more hard-pressed to get by. Force-fed austerity promises worse.

If federal tax revenues reverted to pre-2000 levels (20.6% of GDP), $458 billion annually would be raised. Over $4.5 trillion in 10 years would offset planned sequestered cuts.

Letting Bush era tax cuts expire last December 31 would accomplish the same thing. Another way is by taxing America's wealthiest more.

On average they pay 22.5%. An effective 45% top marginal rate produces nearly half a trillion dollars annually. Doing so raises federal tax revenues from 14.4% to their pre-2000 20.6% level.

It also restores fairness. America's social contract can preserved and enhanced. A modest Tobin financial transaction tax above certain investment amounts goes further.

So does taxing offshore transnational corporate subsidiaries. Doing so adds hundreds of billions in government revenues annually.

Much more can be done. Targeting America's bloated defense budget is long overdue. Taxing trillions in hidden tax haven wealth would raise enormous amounts annually.

America's deficit problem is self-inflicted. Solving it is as simple as making corporate America, wealthy elites, and tax cheats pay their fair share. Don't expect media scoundrels to explain.

Class war is official US policy. Popular needs go begging. America's middle class is declining. Low wage/poor benefit/part-time or temp jobs replaced higher paying full-time ones.

Union representation is weak. It's on the way perhaps to being eliminated altogether. Free trade works one way. At the same time, it lowers wages and destroys jobs.

Offshoring is a national disease. Paul Craig Roberts calls it worse than terrorism. Millions more jobs are at risk. Upward mobility is disappearing. America's decline is assured. Only fools claim what's hugely destructive is good.

Many other national priorities cause enormous harm. Ordinary people suffer most. The gap between rich and poor is unprecedented.

Since 1990, middle America lost 28% of its wealth. At the same time, rich elites increased theirs by around 50%.

Sequester madness promises worse. America's heading for dystopian backwater status. Stagnation and decline are certain. Rebalancing is long overdue. Bipartisan complicity prevents it.

Ordinary people are on their own to change things. Duopoly power won't do it on its own.

It bears repeating. Revolution is the only solution. It's high time grassroots activism initiated it. It won't happen any other way.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

His new book is titled "Banker Occupation: Waging Financial War on Humanity."

http://www.claritypress.com/LendmanII.html

Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour

http://www.dailycensored.com/austerity-when-stimulus-is-needed/
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments


LATEST COMMENTS ABOUT THIS ARTICLE
Listed below are the 10 latest comments of 1 posted about this article.
These comments are anonymously submitted by the website visitors.
TITLE AUTHOR DATE
If people don't have jobs they don't have money & people can't spend Bottom Line No Jobs No Spending Monday, Mar. 04, 2013 at 7:47 AM

Local News

Segregation in the City of Angels: A 1939 Map of Housing Inequality in L.A. A15 7:44PM

Justice Dept. seeking info, IDs on 1.3M visitors to protest website DisruptJ20.org A15 1:04PM

San Francisco Rally Protests Hate Crimes in Charlottesville A14 5:38PM

New Google algorithm restricts access to left-wing, progressive web sites A02 1:52PM

Tracking Twenty Years of Stockton Killings by Law Enforcement A02 1:27PM

Garcetti Cronyism - Why and How to Ignore Your LA Dog License A01 5:05PM

Nation's Worst Meltdown Was In LA J31 4:54PM

As RV towing resumes in LA, officials say program won't 'target homeless' J31 1:15PM

Class War on the Waterfront: Longshore Workers Under Attack J21 10:18AM

Limits to Growth Published Forty Years Ago J18 5:15AM

KPFK's Indy Media on Air Now on Wednesdays J25 9:13AM

Lessons From Portland’s Clashes With Fascists J13 7:36PM

More Local News...

Other/Breaking News

Three reading samples on George Orwell's "1984" N17 3:55AM

Syllogomanie N17 12:28AM

The Shortwave Report 11/17/17 Listen Globally! N16 5:05PM

Paraphysique de la collaboration N15 10:11PM

October 2017 Honduras Coup Update N15 9:23PM

National US Gov as wellas EPA slow to act on Abandoned uranium Mines Cleanup in Southwest N15 10:50AM

OUR HOUSE Grief Support Center Hosts 9th Annual Comedy Fundraiser N14 10:47AM

Republicans against the Poor and the Sick N14 4:16AM

Paraphysique du conformisme N13 11:25PM

Global Warming / Climate Change has Become a New Religion - What's it all About? N13 11:20AM

Crétinisme et jobarderie psychophysiologiques N13 8:21AM

Crétinisme et jobarderie psychophysiologiques N12 10:08PM

"The Public Trust Doctrine," Wealth Inequality, and Iraq N11 12:08PM

Anthologie de la subversion carabinée N11 1:20AM

US Executions Violate The 14th, 8th, and 1st Amendments To The Constitution N10 10:51PM

BUSTED: Watch LAPD cops plant drugs in black suspect’s wallet – unaware body cams were on N10 5:32PM

FBI suppressed exculpatory evidence in Leonard Peltier's trial N09 5:16PM

The Shortwave Report 11/10/17 Listen Globally! N09 4:19PM

Slavery as a Human Right N09 8:46AM

Fbi are human monsters who must be put out of business N09 5:51AM

Entropie ou l'anarchie inversée N08 11:11PM

“Animaniacs in Concert!” with Voice Artist Rob Paulsen, Fri., Dec. 8 at The Tower Theatre N08 12:36PM

Free Updates on Hurricane Help and Recovery Efforts 1 800 665 2843 N08 11:08AM

Benjamin Tucker American Mutualist: Mutual Banking Part 3 and Final Conclusion Part 4 N08 10:06AM

lapd shootings 1998 - 2015 N06 11:21PM

Historical ND Compromise Proposal Unveiled N06 12:08PM

US and China: International Policy as a Zero-Sum Game N06 6:59AM

Putanisme patriarcal, putanisme social N05 10:33PM

More Breaking News...
© 2000-2003 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy