An Inventory Of Conservative Beliefs That Are Destroying America.
Friday, August 13th, 2010Taking the mile high view of conservative economic concepts.
Government BAD, private economy GOOD. That’s the underlying philosophy of conservative Republicans and a majority of so-called Tea Partiers. Rule no. 1. It’s loosely based upon the Chicago school of economics, but has morphed into something almost no real economist recognizes as a coherent philosophy. Even Adam Smith would disagree with much of it. Never mind Keynes. But in politics, as in bad journalism, the rule is never let the facts get in the way of a good story.
Deficits are always BAD. Again that’s the Republican/Tea Party point of view. Balanced budgets are normally advisable. But in a recession, deficits happen. This is where government spending can ‘prime the pump’ to help spur recovery. Otherwise, the private economy takes longer to recover, or can even get more sick. Even conservative economists understand the deficit issue, although they disagree somewhat with what types of deficit spending helps the most.
If only government would just stay out of the way and let private corporations do what they think is best. Another ‘morph’ of the Chicago school philosophy with which even members of that school won’t always agree. From Love Canal to the BP disaster, to the financial collapse of two years ago, it’s painfully obvious to all but the ultra right wing of the Republican Party that this is bad advice and worse policy. The truth is that failure to sensibly regulate the banking industry turned a garden variety housing bubble into the worst recession since the Great Depression.
Medicare, Medicaid, Social Security — all wasteful socialist systems that should be done away with as soon as possible. Again, a right wing fantasy, totally at odds with historical reality. All of these programs have benefited millions upon millions of American who would otherwise be impoverished. Can they be more efficient? Sure. Should they be eliminated? Even right wing Republicans dare not make such a claim. If they did it would be the political death knell for the Republicans. Besides, there’s those inconvenient Europeans with socialist health care systems that provide better health care results for half the money. The right’s response: That simply cannot be. See rule No. 1 about government always BAD and private business always GOOD.
World trade is always good for everyone. The more trade the more good. Economists of all stripes are taking another, less sanguine, look at this belief. Balanced trade is being allowed into the public arena once again, as it was always allowed until the Chicago school rose to ascendancy in economics. Entire industries and their often well paying jobs have been shipped overseas. It was heralded as a good thing. Not so much anymore, as the American economy became 70% consumption. Industries shipped overseas, in the meantime, have gone through several iterations of innovation (durable goods a prime example) and what was once an American strength has turned into a serious weakness.
The dearth of capital investment domestically, caused by this economic philosophy, created severe economic dislocation in America. And it still continues. The resulting trade deficits act like a leak in the economic tire. Money pumped into the local economy goes overseas through the trade deficit ‘leak.’
Ironically, foreign competitors use good old fashioned mercantilism with capital controls and currency manipulation to beat the pants off domestic industry, which exercises the only option they have left — they invest overseas, not in America. This wrongheaded economic belief has made America the prime time chump of the global economy.
Yet it still persists. Amazing stupidity.
We don’t have an energy problem at all. We just need to “drill baby drill” and we’ll have all the cheap energy we could want. Forever. Again, a philosophy looking for some justification. Every developed or developing country on the planet disagrees with this attitude. Seriously. Every damn one of them disagrees. Of all the head scratching ideas the right has, this one takes the cake.
I call this industry ‘Big Fossil.’ It’s an industry that receives billions of dollars in annual subsidies. Billions. The right won’t even consider doing away with the subsidies! The right has fought every effort to reduce the stupendous amount of pollution, and damage, this industry creates every day. The costs of fighting this pollution adds additional billions annually.
It’s like the smog encrusted Los Angeles of the 1970s never existed! Young people in Los Angeles today probably don’t even realize that their city was at one time enveloped in dangerous clouds of fossil burning smoke from industry, utilities and inefficient automobiles. The right fought change then (and thankfully lost) just as they fight it now.
And don’t forget that pesky rule no. 1: Government BAD, private business GOOD. Always and forever.
Same for Industrial Agriculture. Another subsidized industry to the tune of $4-$7 billion. This subsidy, for corn primarily (coupled with a tariff protecting domestic sugar) has transformed farming in America. Small farms were almost made extinct. Food diversity disappeared under the onslaught of subsidized corn. Where there were thousands of meat processing plants 40 years ago less than 10 super processors produce more than 90 percent of the protein Americans consume.
We’ve become an agriculture mono culture. And such cultures have never survived in history. Plus, to add insult to injury, the food produced approaches toxicity. And overuse of the artificial fertilizers these mega farms need to exist, has resulted in huge ‘dead zones’ in the Gulf of Mexico where the nitrogen runoff has lowered oxygen levels below that which can sustain marine life.
Still, as with Big Fossil, Industrial Ag is protected by the Republican right wing. Socialism for their patrons is fine, apparently. In these two cases one must ignore rule no. 1. Which the right wing has no problem doing, it appears.
On and on. Mythical beliefs of how the world actually operates. When these same beliefs run afoul of patron industries, discard them and hope no one’s looking too closely.
It’s tough to persuade someone when their livelihood depends upon not being persuaded.
