MC is apparently throwing his hands up in despair in the face of the big American credit downgrade. Wondering "What Do We Do Now?" about the S&P's decision that the House Republicans should have taken President Obama's offer of the big $4-trillion deal, MC decides there's no policy that can fix the situation. He turns instead to some silly folksy recommendations that don't address the problem:
- "Get a job": MC takes the usual conservative line and assumes his readers (or the imaginary "other" his readers love to demonize) aren't trying and aren't used to working. Baloney. I suspect millions of people would be happy to take that advice, if corporations were hiring instead of hoarding their money, shedding workers, and squeezing the remaining staff for efficiency. And just how are we supposed to create our own jobs if market needs are already being met and consumers don't have the money to spend on new goods and services?
- "Give back to the community": and how does this address the credit downgrade or the federal budget? And how do you give back to the community if you're spending the whole day pounding the pacement looking for a job?
- "Learn who your leaders are, all of them." Good advice, but again, not addressing the nuts and bolts of the problem. Plus, even if you know who they are, you have to pay $500 to get any face time with some of those leaders.
- "Do not accept government money": Here MC misses a crucial fact of macroeconomics. When people don't have jobs, when consumers and corporations aren't spending, when the private sector is making wealth as fast as we'd like, the government is the stimulus of last resort. Fiscal policy should allow us to pour money into the economy to jumpstart production, put wages in people's pockets, and get them buying stuff. To say "Don't take government money" knocks the legs out from under that vital public policy tool. It also flies in the face of South Dakota's utter dependence on federal dollars for roads, bridges, rural airports, water projects, and Ellsworth Air Force Base.
Want to deal with the debt and the credit downgrade? Vote out the Hosue Republicans. Put in politicians who will recognize that President Obama's $4-trillion bduget deal was the best plan on the table and exactly what would have restored S&P's confidence in our ability to get our fiscal house in order.
The Wart Collage provides an illustration of what S&P meant when it said:
" [the] downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011."
The weakness resides not merely in Congress.
Cory,
Both parties are wrong. The only way to fix this long-term is to abolish the Federal Reserve. They are the private international interests who gain from the debt.
Are you a Ron Paul guy, Sibby? Too bad nobody in the chemical toilet will even have a chance to vote for him the primary. Southern Dakota will have to vote against President Obama with whatever earth hater is fashioned from the primordial slime that is the GOP.
I don't agree with Ron Paul on everything, but he is right about the Federal Reserve. A true study of history would show that Thomas Jefferson would also agree with Ron Paul regarding the Federal Reserve.
I like what George Will said yesterday, believe it or not. He noted that S&P's downgrade of our credit rating WOULD weigh against S&P's credibility, if S&P had any credibility to begin with.
I agree. S&P gives Big Finance/Fanny Mae/Freddy Mac high ratings so everybody invests in derivatives, credit default swaps and sub-prime real estate loans, the bubble pops, the economy falls off a cliff, we bail everybody out and S&P wants so downgrade us for it?
Hey S & P, can you spell "kiss my ass?"
The US will NEVER default on its debts.
Never has, never will.
Because our treasury can print money.
The chances of our ever defaulting are precisely 0%.
If that's not AAA, what the hell is?
(...climbs down off soap box)
Thank you Cory. I feel better now.
On a religious note it is important to remember is that the only thing God can't (won't?) forgive is despair.
Stace Nelson implied in a comment at the War Toilet that he is a combatant in the Rapid City race war:
The War College blog has been terrible since Pat left. I disagreed with Pat on most issues but at least he was a competent blogger and up to date on current affairs.
MC's suggestions, while I am sure heartfelt, strike me as belonging in the "Underpants Gnome" theory of economics. For those who are uneducated in Underpants Gonome theory econ, look it up on Google, but the most important equation of the whole system is "Steal Underwear + ?= PROFIT!!!!"
This seems to be MC's line of thinking "Do random stuff + worn-out bromides of the evils of gov. = PROSPERITY!!!!" Yep......
"RepKristiNoem RT @DeadwoodSD: RT @BlackHills It's Rally Week in the Black Hills! Have fun, and be extra safe driving while you're out and about! " Kristi Noem twitter account
I see Kristi Noem is retweeting something she has no ability to give advice on. That my friends is what is wrong with the DWC and it's readers. They don't know anything at least since PP left.
Not an original thought has come from DWC since Pat pulled back, but hopefully, that is only temporary.
RGoeman,
Just because Pat Powers brought up stuff from his secret society meetings does not make them original.