Read The Shock Doctrine

There is no better way to understand what is happening to us than to read The Shock Doctrine. Shock-Doctrine tactics are why we have so many “manufactured crises” and why the right and Wall Street seem to come out on top from each one.

The “deficit” is entirely a manufactured crisis. The “sequester” is a manufactured crisis, like the :debt ceiling” crisis and the “fiscal cliff” crisis and the other crises again and again. People around Reagan said the tax cuts (combined with dooubling the military budget) were a strategy to cause deficits that would force spending cuts. It was called “strategic deficits.”

George W Bush said the shift from surpluses to deficits after his tax cuts was “incredibly positive news” because it would bring 99on a deficit crisis that would stampede opeople into accepting cuts.

This is the Shock Doctrine at work. Create a crisis, terrify people, then force “reforms” that shift the wealth upwards to the billionaires.

Filibuster: Hate To Say It But We Told You So

Many of us fought hard to reform the filibuster and fight the Republican obstruction that is blocking everything the country needs to get done. And I do mean everything. We said please just “make them talk,” which is what the public already thinks the filibuster is anyway. But they reached a “gentleman’s agreement” instead. Those Republican “gentlemen” just filibustered a Defense Secretary nomination — the first such filibuster in history. We told you so.

Filibuster Reform Blocked

For months a coalition of labor and progressive-aligned organizations worked to build support for reforming the filibuster. The hope was that the Senate would change its rules and return the filibuster to the form that the public understands: “Make them talk.” This preserves the ability of the minority to delay bills long enough to rally public support (or not) when they feel that the rights of the minority are being smothered.

At the last minute Harry Reid blocked the reform effort, reaching a “gentleman’s agreement” with Minority Leader Mitch McConnell. Reid explained,

“I’m not personally, at this stage, ready to get rid of the 60-vote threshold,” Reid said in an interview Thursday with The Washington Post’s Wonkblog.

Chris Cillizza, writing in the Washington Post in Why filibuster reform didn’t happen explained,

The news of an agreement that skirts around the edge of reforming Senate filibusters without actually, you know, reforming the filibuster will disappoint liberal Democrats and leave old Senate hands saying “I told you so.”

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Don’t Feed The Debt Ceiling Trolls

Bloggers have learned some hard lessons about engaging with right-wing nutcases who leave nasty comments: “Don’t feed the trolls.” Starve them of the attention they seek. Ignore them and move on. This advice also applies to the right-wing nutcases threatening to bring down our economy by refusing to raise the debt-ceiling limit. They won’t get any traction on this unless Democrats engage with them. So ignore them, isolate them and scorn them but do not engage with them. Their billionaire & Wall Street funders will stop them and the pubic will see them for what they are, but only if we all just leave them alone. They aren’t really going to hold their breath until we all die.

And if they actually did take down the economy (they won’t), the country will be better off in the long run because it means the end of the radical right as a force in our politics.

So let them hold their breath until the country turns blue.

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Michigan Races To Bottom With Anti-Union Law

Pay attention to what is happening in Michigan, because it will add downward even more pressure to your wages and benefits, wherever you live and work. Republicans in the Michigan legislature have rammed through anti-union “right-to-work” laws making union dues voluntary even as unions a required by law to provide services to members and non-members. They say this will make Michigan more “business-friendly” by driving down wages and benefits, thereby stealing jobs from states where working people have rights. The actual intent is to get rid of the unions altogether, and their ability to fight for the 99% in the ongoing class war with the 1%.
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Change.org Turns Right

Here is a pretty big story: Change.org Changing: Site To Work With Corporate, Anti-Abortion, GOP Campaigns, Say Internal Documents. Yep, another “progressive” org is selling out to the corporates for money.
And please sign SignOn.org petition: Change.org: Reinstate the person you fired for letting your users know that you’re going to work with corporations and the far-right

m4s0n501

What Is The Calculation Behind Romney’s Campaign Of Lies?

The Romney campaign has turned to a strategy of swamping the public with flat-out, blatant lies, one after another, again and again, endlessly and lavishly repeated. They do this because they are making a calculation that it will work! So what is going on? And can democracy survive this assault?

The Growing List Of Lies

This week’s lie is the “Obama gutted welfare reform” nonsense. See Bill Scher’s must-read response, Romney’s Welfare Lie: A Betrayal Of Conservatism. The reporting conveys the Romney message, like this: Romney accuses Obama of dismantling welfare reform. The lie is driven home by a massive $$-driven carpet bombing of ads.
The next-most recent lie was the “Obama is trying to keep military families from voting” lie. This lie, repeated over and over, coordinated with outside groups, reinforces the “Democrats are anti-military” narrative.
Before that was the “You didn’t build that” lie, where the Romney campaign doctored audio to make it sound as though President Obama said something he didn’t say. (And got away with it.) This lie, repeated over and over, reinforces the “Democrats are anti-business” narrative.
This one on welfare reinforces the “Democrats take your money and give it to black people” narrative. “We will end a culture of dependency and restore a culture of good, hard work,” said Romney, promising to make them work good and hard.
Rachel Maddow’s blog has been keeping track of the Romney lies, and it is a loooooong list.

How It Is Done

Here is how it works. Each lie is developed in the right’s machine, using something currently in the news to reinforce an ongoing narrative about “liberals.” The lie percolates up through a well-worn process where the germ of the story is planted in smaller outlets, and variations of it are tried out until one seems to resonate. Next, larger right-wing media operations pick up the developed “story” and drive it further. It gets amplified on the radio, FOX News and the right’s newspapers. Finally the corporate media takes it out to more and more people, covering themselves with the claim they are just “reporting” on a “story” that is “already out there.”
One way or another the lie is repeated and repeated and repeated (and repeated) in various forms through various channels that reach various target groups, until it becomes a “truth.” Once it has become a “truth” the Romney campaign uses this “truth” to claim Democrats and President Obama are harming the country.
The Solyndra story is a good example. The right developed a lie about “cronyism,” claiming that a Democratic donor is “tied to” solar-panel manufacturer Solyndra because a foundation with his name on it was an investor in the company. Because a foundation was the investor there was no possibility for the donor to benefit. But that doesn’t matter, they used this “tie” to spread a lie the Obama administration was steering money into someone’s pocket, and they repeated it and repeated it and repeated it.
After months of repetition of this lie, the Romney campaign understood that the lie has become a “truth,” and is using that “truth” themselves in campaign ads and Romney’s stump speech! Romney talks about “cronyism” in the Obama administration, understanding that much of the public now believes this is established fact.

The Calculation

The Romney campaign is limiting media access to the candidate and offering little in the way of substantive policy proposals. They are instead using press releases, advertisements, message-trained surrogates, cooperative media like FOX, Drudge, talk radio, allied newspapers and the right’s blogosphere, while coordinating with massively-funded outside groups like Crossroads GPS, Americans for Prosperity, Heritage Foundation and others.
This is a key thing to get, the Romney campaign believes that they can win this election using lies and propaganda as “truths” to drive their campaign story. They are making the calculation that the right’s media machine has become sufficiently powerful for their version of reality to reach enough of the public, and that it is sticking in their minds as “truths!”
They are also making the calculation — so far validated by the media response — that there will be little if any pushback from “mainstream” media. They trust that the media will look the other way, report lies as “one side says X, the other says Y,” tell the public “both sides do it,” and say this is just par for the course.
But if there is media resistance, they are calculating that the right’s own media power can override any pushback that might come. They might also believe they can turn media resistance to their advantage. Decades have been spent convincing their followers to see potentially objective information sources as “the liberal media,” enemy of conservatism, and any pushback for lying could just increase support for their campaign.
So the Romney campaign, like the recent Bush administration, are conscious that they do not need to work with facts. Instead they believe they can “create truth” through the manipulation of perception. This is hardly new in Repubican circles. The phrase “reality-based community” came out of the previous Republican administration’s calculations of what the public will and won’t learn about. This famous quote from Faith, Certainty and the Presidency of George W. Bush by Ron Suskind, explains,

The aide said that guys like me were “in what we call the reality-based community,” which he defined as people who “believe that solutions emerge from your judicious study of discernible reality.” … “That’s not the way the world really works anymore,” he continued. “We’re an empire now, and when we act, we create our own reality. And while you’re studying that reality—judiciously, as you will—we’ll act again, creating other new realities, which you can study too, and that’s how things will sort out. We’re history’s actors…and you, all of you, will be left to just study what we do.”

What Does The Public “Know?”

If you are reading this you are likely very well-informed. You pay attention to the mainstream news, as well as read various progressive sources. But much of the public is not very well-informed, and faces the problem of not knowing what sources to trust. Subjected to a constant battering of corporate/conservative propaganda and disinformation, they are busy, and not ready or able to do the extensive research needed to make informed decisions.
Progressives and “liberals” try to solve this problem by trying to help people get informed. Conservatives, however, try to use it to their advantage, spreading self-serving misinformation.
The well-funded propagandists study and understand the shorthand methods people use to determine what to believe. This is the reason for the ongoing attacks on the credibility of what would normally be seen as trustworthy sources, like PBS, NPR and what the rest of what has been disparaged for decades as “the liberal media.” This is also the reason for the establishment of so many corporate-funded conservative “institutes” and other academic and authoritative-sounding organizations that issue “studies” and “reports” that always echo the corporate-conservative positions.
The “mainstream” corporate media has also undergone a change over recent decades. Many outlets now see themselves as businesses with a product that has to appeal to “the market” to make money. They no longer see their mission to be informing the public so citizens have the information that is needed to function in a democracy, but instead as “maximizing shareholder return,” by “driving traffic” and whatever else it takes to sell advertising. And many people working as “journalists” understand that advancing their own careers means not making waves by being perceived as “leftist” or “anti-business.”

The Test

Steve Benen calls this a “test for the political world,” writing,

How are we to respond to a campaign that deliberately deceives the public without shame? This lie about welfare policy comes on the heels of Romney’s lie about voting rights in Ohio, which came on the heels of Romney’s lies about the economy; which came on the heels of Romney’s lies about health care; which came on the heels of Romney’s lies about taxes.
The Republican nominee for president is working under the assumption that he can make transparently false claims, in writing and in campaign advertising, with impunity. Romney is convinced that there are no consequences for breathtaking dishonesty.
The test, then, comes down to a simple question: is he right?

This is a test for the political world, as well as a challenge to the viability of our democratic system. We can expect this to continue and accelerate until election day, driven by hundreds of millions of dollars from billionaires and their huge corporations. The question is, will enough of our misinformed public be tricked by the lies? If this succeeds, what kind of country will we become? What will be left?
This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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Another New York Times Columnist Attack On Social Security And Medicare

The New York Times contains another elite-columnist attack on our Social Security and Medicare systems today. This time it’s in the form of an op-ed by Bill Keller. Recently and regularly, New York Times columnists David Brooks and Tom Friedman have also gone after the things We, the People do for each other.

First, The Basics Of The Borrowing

Any discussion of our deficit/debt “crisis” must start with a few quick points about the history of the “crisis”:
1) January 26, 2000, Clinton to Propose Early Debt Payoff,

President Clinton said Tuesday that the budget he will send Congress on Feb. 7 will propose paying off the entire $3.6-trillion national debt by 2013–two years earlier than had been expected even a few months ago.

2) 2001 Alan Greenspan said we needed to pass the Bush tax cuts because we were paying off the debt too quickly.
3) Bush said it was “incredibly positive news” when the budget turned from surplus to deficit because budget deficits meant there would be pressure to cut entitlements. Bush wanted to continue the “strategic deficits” plan to “starve the beast” that was launched in the Reagan years.
Republicans are following a decades-old shock-doctrine plan:

  • Use tax cuts and military spending increases to create terrible deficits that add up to massive debt,
  • Then use the resulting “debt crisis” to scare people (esp elites like Keller, Brooks and Friedman) into cutting democratic government and our ability to control the billionaires and their corporations.

But cutting government doesn’t mean the costs go away, it means that we each have to bear those costs ourselves, on our own, without the help of the rest of us. This is really about cutting democracy so the very rich can be even very-richer.

The Attack

With that out of the way, let us now turn to the latest elite attack on entitlements — those things We, the People are entitled to: the fruits of the prosperity that democracy brings us.
In a NY Times op-ed, The Entitled Generation, Bill Keller writes about the “bloat” of projected entitlement spending, blaming “baby boomers” for future budget shortfalls, because they will need to retire without living in absolute poverty, and get health care.
He writes that because budget cuts have us spending less than we should on infrastructure investment, therefore we should also spend less on Social Security, Medicare and Medicaid. “In 1962 … [a]bout 32 cents of every federal dollar, excluding interest payments, was spent on investments, only 14 percent on entitlements. In the mid-70s the lines crossed. Today we spend less than 15 cents on investment and 46 cents on entitlements. ”
Keller writes, “So the question is not whether entitlements have to be brought under control, but how. ” (These greedy seniors don’t understand that the situation has changed — we have cut taxes for the very wealthy and increased our military spending to prevent the Soviet Union from invading. Who do they think they are?)
Finally, ignoring the People’s Budget, the Budget For All, the Schakowsky Deficit Reduction Plan and all the other sensible budget plans that have been proposed by progressives, Keller writes, “At least the Republicans have a plan. The Democrats generally recoil from the subject of entitlements.”
Keller praises “bipartisan authors of the Simpson-Bowles report” — even though there was no “Simpson-Bowles report.” The commission couldn’t come to agreement and issued no report. As for the “bipartisan” Simpson and Bowles, he is referring to former Republican Senator Alan Simpson, and member of the Board of Directors of Morgan Stanley Erskine Bowles. (Please click the link.) (“Bipartisan” as used by elites like Keller apparently refers to even and odd numbered addresses on Wall Street — the crowd that gets the money if our Social Security system is dismantled.)

Social Security

Our Social Security system is critical to human beings and our economy, just like hospitals, highways, schools and power plants. It is a core institution, used by everyone, and is absolutely vital in most people’s lives. It is the foundation of our retirement security. It is our most basic protection for our families if we become disabled or die.
Dean Baker of the Center for Economic and Policy Research explains just how crucial our Social Security system is to the lives of so many of us, in Bill Keller Wants to Take Away Your Social Security and Is Either Too Ignorant or Dishonest to Acknowledge that He Is Not a Typical Baby Boomer,

Does Keller know that the typical near retiree has total wealth of $170,000. This includes everything in their 401(k), all their other financial assets and the equity in their homes. Another way to put this is that the typical near retiree (between the ages of 55-64) could take all their wealth and pay off their mortgage. After that they would be entirely dependent on their Social Security to cover all their living costs.

In other words, half of near-retirees have less than that so they depend on Social Security even more than that.
We built and paid for our Social Security system. Each generation has done its part to maintain the system’s foundations for over 75 years, and it has only become stronger. If the middle class can’t count on Social Security in their retirement years, what can it count on?
Social Security is a far safer bet than any other retirement savings available. It is vastly safer than a 401K, which is available only to a few anyway, and can disappear overnight. Corporate raiders can take your pension plan. You can’t even count on a pension plan if you are a public employee. House prices can go up or down. But Social Security is always there for us. Even the most sophisticated investors can lose everything, but you can’t lose your Social Security. Social Security is the one retirement system that really works.
Social Security is the most successful government program, and that is why so many elites hate it!

Medicare And Medicaid

A government budget cut is really like a huge tax increase on regular people because it increases what each of us pays for the things government does — or forces us to go without. This is because cuts in government spending don’t actually cut the cost of things, they just shift those costs onto each of us on our own.
For example, if you cut the the government’s Medicare or Medicaid budget our health problems don’t disappear, but each of us has to find ways to pay the cost of medical care or a nursing home on our own, with no help, often at a time when we are stressed by illness.
In Cost of Medicare Equivalent Insurance Skyrockets under Ryan Plan the Center for Economic and Policy Research (CEPR) explains what happens to the cost of health care if Medicare is eliminated. Summary: it shifts the costs to us, except each of us ends up paying seven times as much as the same care costs under Medicare. This is because Medicare covers millions, and that economy-of-scale means the government can negotiate bulk discounts, etc. that we cannot get on our own. From the CEPR explanation:

[The Republican] plan to revamp Medicare has been described as shifting costs from the government to beneficiaries. A new report from the Center for Economic and Policy Research (CEPR), however, shows that the [Republican] proposal will increase health care costs for seniors by more than seven dollars for every dollar it saves the government, a point missing from much of the debate over the plan.
… In addition to comparing the costs of Medicare to the government under the current system and under the [Republican] plan, the authors also show the effects of raising the age of Medicare eligibility. The paper also demonstrates that while [the Republican plan] shifts $4.9 trillion in health care costs from the government to Medicare beneficiaries, this number is dwarfed by a $34 trillion increase in overall costs to beneficiaries that is projected …

Our health problems won’t disappear just because government cuts out Medicare and Medicaid. But the costs of treating – or not treating – those health problems will now fall on us, individually, on our own, instead of aggregated through the mechanism of democracy. And that is money that would otherwise be spent elsewhere in the economy.

The Money

So where do we get the money to pay our bills, if not from the things We, the People do for each other? Get the money from where the money went.
Start by ending the Bush tax cuts! The Bush tax cuts not only cut marginal tax rates for the wealthy, they cut taxes on capital gains and dividends — money you get just for having money. And it dramatically cut the tax on income inherited from wealthy parents — more money that one gets just because one already has money! But ending the Bush tax cuts is just a start.
Reagan dramatically increased the military budget: In 1980, before Reagan, the Defense Department budget was $134 billion, by 1989 it was $303 billion. But that was nothing. In 2000, before ‘W’ Bush, it was $294 billion. By 2008 it was $616 billion. But that doesn’t count military-related items outside of the Defense Department. Depending on how interest debt is applied, total military spending is between $1 and $1.4 trillion. (And, by the way, wars are expensive.) (“Nothing is more important in the face of a war than cutting taxes.” –Tom DeLay)
Fix health care. Today Mitt Romney praised the way that Israel’s socialized health care system keeps costs low. WaPo: Romney praises health care in Israel, where ‘strong government influence’ has driven down costs,

He praised Israel for spending just 8 percent of its GDP on health care and still remaining a “pretty healthy nation.”
“Our gap with Israel [on health spending] is 10 points of GDP,” Romney said. “We have to find ways, not just to provide health care to more people, but to find ways to fund and manage our health care costs.”
… Israel created a national health care system in 1995, largely funded through payroll and general tax revenue. The government provides all citizens with health insurance: They get to pick from one of four competing, nonprofit plans. Those insurance plans have to accept all customers—including people with pre-existing conditions—and provide residents with a broad set of government-mandated benefits.

Get the economy moving again. Jeeze, instead of saying because we stopped investing in infrastructure therefore we need to cut other things, how about investing in infrastructure? We have millions of jobs that need to ing and millions of people looking for jobs. And we can finance it for free. The payoff will be enormous, all those people no longer needing unemployment and food stamps, all those people and construction companies paying taxes again, and the resulting economic growth cutting the debt-to-GDP ratio.

Don’t Be Fooled By Elites Hating On Entitlements

Don’t be fooled: this is really about shifting from democracy to a system where we are on our own, up against the wealthy and powerful. This is about shifting from a system where we can all be prosperous to a system where a few have all the wealth and power.
This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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Have You Actually Watched Carter’s “Malaise” Speech?

Here it is, well worth watching! STILL profound, important, prescient. And startling in the context of what we know today about the corporate right’s assault on democracy.

The first part is about the mistrust of government and each other that had started taking hold, the rest is about energy, conservation, and the effect on our economy.

As you watch it, keep in mind that the right’s “noise machine” (partly funded by oil companies) had already been operating behind the scenes for several years, already spending tens of millions a year on the effort. Back then nothing like that had been encountered from inside the country (at least since the lead-up to the civil war) – the smear machine, the propaganda, the mass repetition of carefully crafted anti-government and in-it-for-yourself messaging, etc. – so people were just blindsided by it. But it was clear something was happening, and Carter called it a a “fundamental threat to American democracy”.

We Can So Easily Create Jobs, Cut The Deficit And Revitalize Our Economy!

The path to creating millions of jobs is so easy and obvious. Hire people to modernize the infrastructure and to retrofit buildings to be energy efficient. Millions would be paying income taxes instead of receiving unemployment or food stamps. The companies that supply the materials and steel would also be hiring and paying taxes, and the companies that supply them … and the companies that supply them. And when we are finished, the payoff to the economy from a modern infrastructure and energy efficiency will be enormous. Anyone who tells you we can’t or shouldn’t do this is up to no good.

Millions Of Jobs Need Doing, Millions Unemployed

We have millions of people unemployed at the same time as we have millions of jobs that need to be done. Connect the dots! It is so easy!

Dot: No net job gains since 2000. 8 million jobs lost in the recession. Never mind jobs for the 86,000 new people entering the labor force every month…

Dot: According to the American Society of Civil Engineers (ASCE),

“congested highways, overflowing sewers, and corroding bridges” were creating a “looming crisis that jeopardizes our nation’s prosperity and our quality of life.”

Dot: From a recent NY Times story on our country’s water systems,

Today, a significant water line bursts on average every two minutes somewhere in the country, according to a New York Times analysis of Environmental Protection Agency data.

. . . State and federal studies indicate that thousands of water and sewer systems may be too old to function properly.

[. . .] “There’s a lot of evidence that people are getting sick,” he added. “But because everything is out of sight, no one really understands how bad things have become.”

Connect the dots.

Ten million jobs needed. Ten million jobs that need doing.

Connect the dots. We need a National Rebuild America Project! It would employ millions, it would get people and businesses back in the economy, paying taxes, buying things, and not receiving the badly-needed help of unemployment, food stamps, etc.

Jobs Fix Deficits

Jobs fix deficits. How hard is that to understand? We have a deficit of jobs. People who are not working are not paying income taxes, and are instead likely receiving unemployment, food stamps or other assistance. In any event they are certainly not contributing to the economy by making things or buying things. Jobs fix deficits.

The Payoff

There wold be an enormous economic payoff from investing in a National Rebuild America Project. I mean an economic payoff beyond getting people back to work, paying taxes, buying things and beyond getting people off of government assistance.

Imagine an economy with a fully modernized infrastructure providing the nourishing soil for new and existing businesses. Imagine our economy with energy efficiency freeing up resources to apply to other areas. Imagine our economy with everyone working. Imagine our economy with companies able to compete in world markets with the very latest and most efficient foundation undergirding their efforts.

Deficit Emergency?

They say we can’t invest in modernizing our infrastructure or in energy efficiency because this would be “government spending.” They say we can’t afford to do this kind of work. They say we instead need to cut back and pay off the deficit instead. As if laying off teachers helps the economy!

Where did all of this “deficit emergency” nonsense come from? We had a huge budget surplus when Bush took office. The debt was projected to be paid off entirely in ten years. So Bush gets elected, Greenspan says we’re paying off the debt “too fast” and they gave the rich a huge tax cut, and doubled military spending! It’s not hard to see where the deficit came from. (No, seriously, click through and see the charts, it’s not hard.)

So we shifted to a huge deficit instead and Bush said this was “incredibly positive news” because it will force the country into a debt crisis that they can propagandize to force cuts in things government does for We, the People.

Hey people, figure it out, we do not have a debt emergency, we have a manufactured crisis that is being used to scare people into giving up the benefits of democracy.

Has To Be Done Anyway

This is work that has to be done anyway! Once again, our infrastructure is falling apart, our companies are not competitive, our energy inefficiency is costing us dearly. This work has been put off for a long time. Every day we wait, it just becomes a more expensive problem. Funny how this is the way conservatives describe the debt, when in reality is the problem with delaying investment in modernization.

So why not do it now, when people really need the work? We have been deferring the maintenance of our infrastructure since the big Reagan tax cuts for the rich. The roads, bridges, dams, airports, rail, energy grid and the rest are in bad shape. This is slowing our economy. This is hurting people and costing money and time. This is costing our businesses in their international competitiveness.

Your Homework Assignment

OK, here is your homework: Big Ideas To Get America Working: Rebuild Our Infrastructure.

This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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The Most Important Thing The President Said About The Republican Budget

The most important thing the President said about the Republican Budget in his big speech Tuesday was when he described just some of the damage it does, and said, “This is not an exaggeration. Check it out yourself.” Seriously, do that, and see if you can get your friends, relatives and especially your right-wing bother-in-law to do it, too. Seriously.
Republicans Counting On “Low-Information” Voters
The secret of the Republican technique is that they count on lots of people being tuned out, apathetic and largely uninformed. They put up a lot of misinformation and smoke and mirrors and diversion and distraction, often claiming that what they are doing is the opposite of what they are doing, to trick people into accepting what they are doing, or at least not getting involved and working to stop them. And then they go ahead with their hidden agenda, usually involving handing over tax cuts, public money or property, favors, contracts, deregulation, get-out-of-jail cards, etc., to the highest-bidding contributor, or the company/lobbyist/etc. promising the most lucrative “jobs” or “speaking fees” etc., after government service is completed…
Another technique is accusing the other side of doing what they themselves are doing, as “cover.” (It’s called inoculation.) They won the majority in the House by running ads telling seniors that Democrats had cut $500 billion from Medicare, and a majority of seniors voted Republican for the first time. It was enough to swing control of the House. Now in office they are not just cutting Medicare, they are privatizing Medicare, phasing it out for those now under 55.
(Update: See: Romney Accuses Obama Of Taking ‘A Series Of Steps That End Medicare As We Know It’)
They are using another inoculation tactic to mask what they are doing, confusing people by portraying Obama as extreme and divisive for saying the Republican budget is extreme. Really, if you try to explain to regular people what is in this Republican budget, they will think you are an insane extremist for saying such things! (See Who Is The Crazy Person In The Room?)
Don’t Trust Me – Find Out For Yourself
The antidote is to get informed. Do not just trust what I write here, go find out for yourself what the Republicans have voted to do. Go visit several news sources and learn about this Republican budget. I’m not going to tell you where to go (except that FOX is not a news source.) Make an effort. Use the Google. And this is what you will learn:
They really are privatizing Medicare.
They really are claiming to “cut deficits” but extending the Bush tax cuts for the rich, costing $4.6 trillion.
They really are cutting taxes on the rich by another $4.6 trillion!
They really are giving millionaires an average $187,000 tax cut.
They really are dramatically cutting corporate taxes.
They really are denying health insurance to up to 17 million children with pre-existing conditions.
They really are dramatically cutting Medicaid by as much as 75%, with as many as 27 million people losing coverage.
They really are cutting 1,311 federal agents immediately from the Dept of Justice and another 4,587 agents each year over the next decade.
The cuts really do cost 4.1 million jobs.
They really are cutting 700,000 pregnant or postpartum women, infants, and children off the Special Supplemental Nutrition Assistance (WIC) program and another 1.8 million women, infants, and children off each year for the next 10 years.
They really are cutting 60,000 children out of Head Start immediately, and another 200,000 a year out each year for a decade.
And those are just some of the cuts. Food inspectors, work safety inspectors, education, infrastructure, police, courts, environmental protection …
They really are counting on most of the the public to stay distracted, apathetic and largely uninformed. YOU can help do something about that. Learn the facts and spread the word.
This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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For 2012 Let’s Restore Our “Industrial Commons”

David Brancaccio’s Marketplace story Tuesday, Decline of Kodak offers lessons for U.S. business traced the decline of Kodak and the loss of Rochester, NY’s good, middle-class jobs to Kodak’s failure to tend its “industrial commons.” This is a national problem. For 2012 let’s resolve to restore our industrial commons and bring manufacturing back to the U.S.
Kodak on Marketplace
Listen to Tuesday’s Marketplace story, Decline of Kodak offers lessons for U.S. business.
Click to listen.
Story summary: Kodak didn’t tend its “industrial commons,” the local concentration of expertise in making the things that go into a camera.

You make your money by selling cameras. And you now needed to make components. You needed to make lenses; you needed to make shutters — all kinds of things that the skills for which no longer existed in Rochester.

This is what we have done in our country, too. We have been dismantling our “industrial commons.” By sending manufacturing out of the country we have been taking apart the supply chains and abandoning the expertise and skills and culture that go with it.
Other Warnings
Last year former Intel CEO Andy Grove sounded a warning about this problem. In How to Make an American Job Before It’s Too Late. Grove wrote that we are not just losing jobs to China, we are losing the “chain of experience” that enables new companies and industries to form and to create new jobs and argues for a national economic strategy to preserve our manufacturing and technology base. He lays out a plan: “rebuild our industrial commons,”

The first task is to rebuild our industrial commons. We should develop a system of financial incentives: Levy an extra tax on the product of offshored labor. (If the result is a trade war, treat it like other wars—fight to win.) Keep that money separate. Deposit it in the coffers of what we might call the Scaling Bank of the U.S. and make these sums available to companies that will scale their American operations. Such a system would be a daily reminder that while pursuing our company goals, all of us in business have a responsibility to maintain the industrial base on which we depend and the society whose adaptability—and stability—we may have taken for granted.

We Gave It Away
Many American manufacturers made a deal with China to lower their manufacturing costs. Here is how it worked: Americans (used to) have a say in how this country was run, and said they want good wages, benefits, job safety, clean air, etc. These are the fruits of democracy, but to some they are an impediment to quick profits. So executives at the big multinational companies wanted a way around the borders of democracy and its demands, and pushed for “trade” deals that would let them move manufacturing to places where people had no say, in order to force American unions to make concessions. They got their deals and packed up our factories, moved them to places like China and then brought the manufactured goods back here to sell.
We lost 50,000 factories to China just in the ‘W’ Bush years, and our trade deficit soared, and now we as a country are paying the price. Making (and growing) things is how a country earns its living. It is how we bring in the income with which to buy things others make and grow. Leo Gerard of the United Steelworkers said it clearly,

“You don’t create real wealth by flipping coupons or hamburgers, you create it by taking real things and turning them into things of value. And those things of value are turned into other things of value and all of a sudden you have a wind turbine with thousands of parts made here. You can’t have a clean economy without good jobs and can’t have good jobs without a clean economy.”

We just gave it away, and justified the loss by saying that better things will replace it. The result has been ever-increasing trade deficits that brought us a huge debt that makes us poorer. Our debt is not because of government spending, it is because we have given away our ability to make a loving!
An Ideology To Justify
In the process the 1%’ers who did this to us developed an ideology around hating America and democracy. To justify outsourcing our jobs and factories they said Americans had grown lazy and wanted handouts. They said that the huge profits reaped by a few from selling off our manufacturing infrastructure meant they were “producers” and that democracy was “statism” and “collectivism” that enabled the “parasites” to “steal” from them. They declared that “taxes are theft” that “punish” the “successful” and the “job creators.” They stopped funding infrastructure and education and law enforcement, denegrating these as “government spending,” and declared that the wealthy few have a “right to rise” and saying the rest of us are “imbeciles.”
They moved our “industrial commons” out of the country, closing the factories and thereby dismantling the supply chains and the “chain of experience” that enable us to innovate and compete. They let China capture the lead in emerging green manufacturing technologies that will bring millions of jobs and trillions of dollars. They even let China extort proprietary technologies, in exchange for short-term profits.
They rode the tiger and now the tiger is coming back to bite us.
Riding The Tiger
Richard Eskow reminded me of an old Chinese saying, “He who rides the tiger cannot dismount.” American manufacturers rode the Chinese tiger to short-term profits, and now they cannot dismount. They “partnered” with China to get around the borders of democracy and the good wages and benefits democracy demands. But now the tiger wants more. The tiger wants to eat them up.
Riding the tiger: Forbes: Currency Manipulation is NOT the Biggest Chinese Threat,

China’s hidden threats are a multi-headed info-tech “Hydra,” the parts of which are interrelated:

  • Intellectual property rights violations (or lack of enforcement in China) allowing open theft of proprietary designs, etc.
  • Theft of private-sector technology (which has been going on for years) accelerating Chinese development cycles
  • Growing number of cyber-attacks, accessing highly confidential US government information, costing the US private sector billions of dollars in IT disruption.
  • Growing military/technology stolen secrets (e.g., stealth fighter plane designs, acquisition of downed stealth-helicopter parts from the bin Laden attack, electronic technology & software from US companies in China, etc.)

Riding the tiger: NYT: Chinese Rules Said to Threaten Proprietary Information,

China is expected to issue regulations on Saturday requiring technology companies to disclose proprietary information like data-encryption keys and underlying software code to sell a range of security-related digital technology products to government agencies, American industry officials said on Friday.

Riding the tiger: Fiscal Times: Stealing America: China’s Busy Cyber-Spies,

Economic and industrial spying by China appears to be more pervasive and egregious than ever, costing America billions of dollars each year, according to a new report by a U.S. government agency. And the report raises an important question: If stolen trade and technology secrets help fuel China’s breakneck growth, then is more espionage required to feed the growing beast?

The Chamber of Commerce rides the tiger: WSJ today: China Hackers Hit U.S. Chamber: Attacks Breached Computer System of Business-Lobbying Group; Emails Stolen,

A group of hackers in China breached the computer defenses of America’s top business-lobbying group and gained access to everything stored on its systems, including information about its three million members, according to several people familiar with the matter.
The break-in at the U.S. Chamber of Commerce is one of the boldest known infiltrations in what has become a regular confrontation between U.S. companies and Chinese hackers.

They rode the tiger. But now the tiger wants more. The tiger wants to eat them up.
Let’s Resolve To Rebuild American Manufacturing
Let’s resolve to rebuild American manufacturing, starting in 2012. Manufacturing is the backbone of a prosperous economy. Let’s resolve to bring back good jobs that pay good wages and unpin a middle-class lifestyle. Let’s resolve to balance trade with the rest of the world so we can fight our debt problems. Let’s resolve to start fighting to win the lead in the Green manufacturing revolution.
Don’t let the “free traders” exploit workers in countries where they do not have a say to force concessions from Americans in unions. Don’t let the oil and coal companies create false “scandals” like Solyndra to block government from investing in green alternatives. Don’t let the 1% make democracy a competitive disadvantage — democracy is the only economics that works!
Last week President Obama appointed Commerce Secretary John Bryson and National Economic Council Director Gene Sperling to co-chair a new White House Office of Manufacturing Policy. The new Office of Manufacturing Policy will have cabinet-level status, reflecting the importance of the manufacturing sector to our economy. It will coordinate the efforts of different government agencies, such as the Small Business Administration, the Department of Commerce and the Transportation Department.
This is a positive step if there ever was one. Let’s resolve to develop and execute a national manufacturing strategy. (please click through)
It is time to restore our national “industrial commons.”
Frank Sobatka explains:

This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
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