Call to Action

Democrats must challenge Republican lies about inflation. The Republican message is simple: “Inflation is caused by Democrat’s unrestrained spending. Elect us and we’ll stop that and fix it.” Both parts of that message are lies.

Inflation is everywhere in the world and we’re generally on the good side of average. That last Covid payment is not what turned the world upside down. We’re still fighting the product and labor bottlenecks that persist. Republicans haven’t proposed one single bit of a plan.

Furthermore, as several authors have pointed out, Republicans are anything but a safe choice. We’re not talking about the old conservative Republicans. These are Trump’s burn down the house people. With the debt ceiling blackmail, Republicans are going after Medicare and Social Security with a threat of liquidity collapse if they don’t get it. We’re going to outdo the British Conservatives with Liz Truss!

Finally it needs to be recognized that the Republican argument on inflation is just a rehashing of the usual Republican program of presents to the rich. Inflation is the lastest bogeyman to say we can’t have public services or anything else that rich people don’t want to pay for.

A Message for Democrats Now

It has become clear from all polls that the key issue for voters in this midterm election is inflation.  That’s a difficult issue for Democrats, so we have tried to make it something else:  January 6, the Supreme Court, etc.  The time has come to realize that all of that has failed.  That’s particularly scary, because all of the crazy people we helped nominate in Republican primaries now stand a good chance of being elected—because voters view Republicans as better for the economy, regardless of how crazy a particular candidate may be.

So there is no substitute for taking on inflation as an issue.  It’s not as if we have no answer for this, but the time to act is now.  Please, please contribute to this.  For what it’s worth l give a few points here.

  • Current inflation is not something created by the last stimulus checks. 

Inflation is a worldwide phenomenon, and we are actually at the low end in the Western World.  It is the worst in 40 years, because we haven’t had anything like Covid for many decades.  Even today we have many categories of manpower shortages (e.g. women who can’t work because daycare centers were closed by Covid) and product shortages (e.g. in electronics) as well as changes in demand patterns (e.g. in real estate).  Energy prices are being manipulated as we resist Russian aggression in Ukraine.  We have been working to deal with all of this.  There is no simple case where none of it would have happened.   Further, since Republicans are pretending they can blame everything on Democrats’ spending, they have no plans to make any of it better.

  •  There isn’t any inflationary profligate spending in the rest of the Democrats’ program

Republicans are rushing to take responsibility for results of the infrastructure bill—even in many cases where they voted against it.  Most of the population recognizes that the climate measures are absolutely necessary.  For student loan debt, many people seem to have been confused by the $400 B figure attached to the program.   In fact this is an accounting issue, where the number is spread over decades, without any significant near-term or per year effect.   It should also be noted that college tuition costs essentially doubled starting in 2008, so there is an issue to be addressed.

  • The current Trump Republicans are not the fiscally conservative, reliable Republicans of old.  They are ready and willing to sacrifice all of us to the wild idea of the day. 

The now-serious debt ceiling blackmail is a case in point.  Republicans are ready to throw caution to the winds—in a very precarious world economy.  Massive cuts in Medicare and Social Security would be on the block in such an effort.  And forcing a US default in today’s world would create a liquidity crisis to make the Liz Truss affair look like nothing at all.  Trump Republicans are also ready to tank the economy if they think that will help elect their hero in 2024.

One British observer described similarities across the Atlantic: “Like the Republicans in the United States, the Conservatives are detached from reality. In a generation, they have become a party of monomaniacs, incompetents and ideologues.” We shouldn’t be laughing about Liz Truss here.

The Depression of the 2020’s

We’re not paying enough attention.  This midterm election hides a real danger of Depression.  We’re stumbling into exactly what happened in the 1930’s.

The Great Depression of the 1930’s occurred when the financial authorities of the day responded to a sudden downturn with the opposite of what was needed.  A straightjacket of fiscal austerity was applied (by the self-protecting upper classes) in place of the stimulation that would have enabled recovery.   That shut down everything in the US and much of the western world.

We are currently fighting inflation.  That’s a tough battle and will cause a slowdown that is some variety of recession.  It’s what happens next that matters. 

The only reason we got out of the 2008 recession was that there were enough Republicans to join Democrats in passing a stimulus package early on.  Already by 2010 there were few of those Republicans left, and any further stimulus was blocked in the name of the bogus “balanced budget amendment”.  The goal was national pain ahead of the 2016 election.  It worked.

We’re in that situation again, but the dangers are much worse.   To state the obvious, the worldwide economy is in extremely fragile state:  inflation is everywhere (we’re actually on the low side), there is war in Ukraine (with direct consequences for many countries), energy prices are rising from Saudi greed, there’s even a dictatorship-induced slowdown in China, and (compared with 2008) there is very little international cooperation.  Forced austerity is exactly what brought the world economy down last time, and we’re going to get it again.

For today’s Republican Party a recession is an opportunity.  A Republican (Trump) Congress will do anything to bring back their hero.  As in 2014 there will be no possibility of stimulus no matter how bad things get, because pain is the goal.  By 2024 it will be too late for any short-term way out. 

The Great Depression was so bad, that it seemed that people would always remember what happened and never do that again.  Unfortunately we’re there.

Education—Student Loan Debt and the Rest

The public discussion of Biden’s student loan plan seems to be about some other country—certainly not this one.

Much of the discussion takes the point of view that Biden’s plan is a wildly-expensive and unnecessary change, since post-secondary education is functioning the way it always has.  And further the plan isn’t sufficiently targeted to the poor, so there is no point in doing it.

In fact post-secondary education in this country is so broken you hardly know where to start.  And the people targeted by the plan were so badly screwed by us that we have a responsibility to notice. 

Let’s look at the history.  The following chart is a point of departure:

It’s obvious from the chart that around 2008 something happened to the cost of college—it took off.  A prime ingredient was the George Bush’s 2008 crash, which was a double whammy:  states had less money to spend—so tuition went up—and students and their parents had less money to pay it.  As we all learned during the Covid crisis, states have limited ability to deal with new expenses, as many are prohibited from running deficits.  They need to rely on the federal government to help them out. 

However the Republican Congress blocked all stimulus (remember the “balanced budget amendment”) to provoke dissatisfaction for the 2016 election.  So there was no help to be had.   Unsurprisingly people had to take on new levels of debt.  And with Republicans continuing to sabotage the recovery, there were few jobs for these people when they graduated (or didn’t) and went immediately into arrears.  Student load debt didn’t grow because students were irresponsible, it grew because government was.

Adding to that, Republicans spent years protecting fraudulent private pseudo-educational institutions because of the supposed superiority of the private sector.  At such places you could earn a degree in “culinary arts”, for example, which was considered valueless in any real restaurant.   Essentially all students at those institutions incurred monumental levels of debt and no skills.  The worst of those have now been shut down, but Betsy DeVos did everything she could to defend them.

As a country we screwed a generation of students.  From the numbers on the chart, $10 or $20 thousand seems relevant, but assuredly not profligate. As for inflation, the risk has been exaggerated by false comparison to the stimulus packages.  The cost here is budgeted over decades; its current impact is minimal.

However we should be clear that this is a Band-Aid on a God-awful wound, because for the most part things have only gotten worse.

First of all, averaging over all institutions in the country gets a rather diverse mix of good and bad colleges. That’s appropriate for addressing needs of borrowers.  However If you want to go to a good institution to get yourself a good job, the numbers are basically twice what’s on the chart:  around $20 thousand yearly for a good public institution.   For private colleges, we can be more exact since they act as a cartel:  $80K.   Even applying to these places can cost thousands.  So much for equality of opportunity. 

What’s more the public university system, instead of being strengthened, is under attack.  That’s not just a matter of the well-publicized politization of education, bad as that is.   Public funding in many states has been reduced to the point that public colleges are admitting out-of-state (or out-of-country) students in preference to in-state ones, because they need the extra money.  That has actually become a major contributor to student loan debt!  The financial situation is so dire that colleges are spending more on administrators to raise money than on education itself.

All of that sounds like a hard problem, but as with healthcare, just about every other developed country has found a way to do it.  We need to strengthen the public system with necessarily more of a role for federal funding.  Public education has to be first-rate and affordable—and available to everyone in every state.  We’ve got to banish the preposterous model of education as a severely-limited resource with parents ready to kill to get their children into the right places!  In addition we need to limit the size of loans people need to take and be rational about the payback.  The Australian system, with payback based on ability to pay, is one working option.

It’s worth stating the obvious fact that with the current cost of education, the only way we’re keeping this country going is by importing foreign graduates (and telling them how much we hate their being here!).  We’d have to shut down Silicon Valley otherwise.  We should also be clear that when we talk about national security we’re talking not about aircraft carriers but about our national competence in key technologies.

It is also worth stressing the problem is NOT (despite rumblings from both the left and the right) that we’re sending too many people to college.  Good jobs need sophisticated training.  You can look at the government’s own (or anyone else’s) expectations of the jobs we’re going to need to fill.  Sure there should be more specifically vocational training also, but that’s not the answer to the problem we know we’ve got. Also we’ve learned from the Covid experience that online instruction is no silver bullet to replace teachers.

Finally it’s worth responding to the charge that we’re not sufficiently targeting our payments to the poor.  The fact is that the only route to equality of opportunity is making sure that there is a first-class system available to everyone.  We used to understand that.  We were the first to recognize that secondary education needed to be available to everyone.  Eventually other countries caught on, because there was a big advantage to the country in doing it.

This has been proven so many times it’s ridiculous to have to state it—education is the backbone of the strength of the country.  Despite some rhetoric, there’s nothing either left-wing or right-wing about this. Even Adam Smith knew it—he didn’t futz around wondering how little training poor people could get by with, he wanted universal literacy in the eighteenth century.  If we want to succeed as a nation, we need to succeed at education.

Democracy’s Enemies are No One’s Friends

Today about half the United States electorate seems to think that the end of democracy would be great—they could just keep on winning.  It’s not said enough: that’s a fallacy regardless of where you sit on the political spectrum.  The end of democracy means the end of leverage.

As history has proved over and over again, the winners when democracy dies are the real elites who hold power.  In this case were talking about the Kochs, the Thiels, the Mercers, the Murdochs.  In the absence of democracy, no functioning elections means no power for anyone else.  All other leverage is gone.

Those people have been very clear about what that means.  What they want is what’s good for them.  No taxes on rich people and corporations.  No regulation.  No government services they don’t need—that is no social security, no Medicare, two-tier education, nothing for climate, no safety net.   Back to the glory days of the nineteenth century, when businesses could get away with anything.

For now a section of the population finds common cause with those people on guns and abortion, but those were never the main issues.   The only reason we’re talking about those issues today is that we do have a democracy today and voting matters.  Guns and abortion are a path to power, but not a commitment to support anyone in any way.

Once democracy goes, we’ll have nothing to say.  And nothing is what everyone—both their supporters and their opponents—is going to get.

We’re Doing Climate—Next the Court

Schumer and Manchin seem finally to have reached agreement on meaningful climate action. If we can do that, the next step has got to be reforming the Supreme Court.

This Court is responsible for even more than it gets blamed for.  Roe v Wade is the tip of the iceberg.  This court is dedicated to the project of overturning democracy by enforcing and maintaining minority rule.

That starts with the defense of gerrymandering.  This is the single most important factor in the polarization of the political environment—a political minority is given vastly exaggerated and untouchable power.  Punting to Congress is a joke, since that asks the beneficiaries to give up power. To that gets added Citizens United and the provocatively-announced ruling on “replacement electors.”

As both Alito and Thomas have made clear, this court has decided to use its unchallenged power to rule—and the proper response of the population should be obedience. Democracy has no place is this vision.

Changing the Court’s size is a matter that requires majorities in both houses of Congress and the President.  Democrats have that.  Taking that action is not radical.   What is radical is a rogue Supreme Court that is using it’s unchallengable powers to rule—certainly not the intention of the founding fathers.  It should of course be noted who is actually rulling—the Koch organization that created and managed the  Federlist Society, to which all conservative justices have dedicated their careers.

This is a chance to save democracy in this country.  Second only to saving the planet.

The Mid-Terms are It

There’s nothing particularly novel about this conclusion, but it still needs to be said over and over again. There is only one objective now: the midterm elections. With the current activist Supreme Court there’s no telling how much damage will be done in two years or what elections will look like in 2024.

This Supreme Court has asserted it’s right to impose a belligerent, unpopular theocracy. And that’s just the beginning. The conservative justices all come from the Koch organization’s Federalist Society, whose end goal is business control of government and elimination of all regulation and social services. That may sound far-fetched, but so did the complete elimination of Roe v Wade.

The Court has pointedly said it would review state plans for “alternative electors.” That would potentially allow gerrymandered legislatures to override electoral results. Such proposals are crafted to give all electoral power to those gerrymandered legislatures–even governors (some are Democrats) have no say. This Court is controlled by Republicans in the mold of Mitch McConnell. They have no qualms about doing what’s best for them, and they can hide (as usual) behind calling it states’ rights. With enough states tied up in this way, it may well become impossible to elect anyone but a Koch-approved President.

The Supreme Court has to be reformed before it completes its takeover of the country. That requires workable majorities in both the House and Senate, which sounds like a heroic task. However the point is not that it’s easy; the point is that there is an actual path to saving the country from the Koch coup. There are enough seats up for grabs in the Senate. Retaining the House will be harder.

For the House people have just got to realize what’s at stake. Roe v Wade is bad enough as it is, but it’s also a sign of what’s coming. No labor protections, no help for the environment, no government role for healthcare or Social Security. The USA as Brazil, with all but a few of us living in the slums of Rio and ready to be undone by climate change.

We have an opportunity to preserve our country before it’s turned into something unrecognizeable. And that’s not just for Democrats. This is a new bout of Prohibition with religious vigilantes telling everyone how to live their lives. And the powers pushing hardest for gun rights really want those guns in the hands of private Pinkerton militias, just like in the good old days of the nineteenth century. The Koch people are nobody’s friends.

This year is it. Forget everything else. It’s amazing we have a chance.

RIP USA

Clarence and Ginni Thomas are running the country now.

This was a genuine coup engineered by the Koch organization–creator and manager of the Federalist Society, the source for all our conservative Supreme Court justices. Read Dark Money. Check Wikipedia for recent Federalist manager Leonard Leo. This takeover was always the target.

There are a few others to call out for their contributions. Anthony Kennedy who knowingly capitulated to exactly this. Mitch McConnell of course. And Ruth Bader Ginsburg who couldn’t put aside her ego for the good of the country when Obama asked.

Finally and most fundamentally the founding fathers who made a disastrous mistake: the undemocratic organization charged with enforcing the Constitution has the unchallengeable power to make of the Constitution anything that it wants. That’s what this rogue Court is doing.

As Thomas indicated, they’re just getting started. The Koch project is to return the US to a nineteenth century level of government subservience to business: minimal taxes on corporations and rich people, no services, no personal rights, no regulation, no unions, no checks on business behavior - paradise. If we haven’t lost Medicare and Social Security yet it’s because that’s inconvenient for the next election. After a few more years of voting restritions they won’t have to care. We’ll have a country where the welfare of the population is simply out of the equation.

Unless Biden can do something about the Court–hardly a likely prospect–the United States of America as we knew it is no more.