Easier Than Governing

This post originally appeared at Government Cheese: Chronicling the collapse of democracy

Modern society is complex, vast, complicated. Governing modern society is hard. Getting it right requires a lot of hard work doing the managing, measuring, forecasting, planning, consulting, regulating, making & enforcing rules and all that boring hippie crap. Getting the details right is difficult. All of it means attending endless meetings. The skills needed take decades to master. And it all requires dedication and commitment.

Instead Of Doing The Actual Work

US Republicans and UK Tories have found a way around doing the actual, difficult work: Just don’t do it! Problem solved!

“Conservatives” espouse “The magic of the market.” Instead of governing, why not simply “unleash” the “market” to do everything.

Kill off the rules and regulations. Fire the enforcers. Skip the planning. Cancel the meetings. Demonize the “experts.” Turn it all over to “the magic of the market.”

Above all else, nurture the “market.” Allow any entity calling itself a “corporation” to engage in any scheme that can be imagined.

So Many Good Things

Protect people from disease? The market will do that.
Protect people from fraud? The market will do that.
Make sure the food is safe? The market will do that.
Maintain and improve the standard of living? The market will do that.
Provide shelter? The market will do that.

The Invisible Hand Will Do The Work

After you have dismantled the entire governing process (“the Deep State”) you can just sit back and party while everything is taken care of by an invisible hand engaging in creative destruction. The Lord will work in mysterious ways. Disruption is the key.

It’s magic!

Cash Bonus

This approach comes with a huge bonus. “The Market” rewards those who “unleash” it.

And Here We Are

And here we are. Infrastructure falling apart. Health care systems in shambles. Education systems not educating. Etc. Etc. Etc. Everywhere you look everything in society is falling apart.

Don’t forget the big one: The planet’s climate is disintegrating and could very well wipe out society itself.

The Magic of the Market at work!

Capitalism And Privatization

On the benefits of privatization – turning public assets over to the “private sector”:

Capitalism – “the private sector” – does not invest in the pubic interest. That is not what it is for. It exists to enrich the few “owners,” and even that only in the short term.

Everything else is propaganda to convince the public to let them get away with that.

Why I Don’t Have Time For Republicans – Any Of Them

This morning Ann Coulter circulated a piece saying that the Britt fiasco was the result of Republicans using “DEI” to find a SOTU spokesperson, and this is what happens when you put a female there for quota reasons instead of a white male. Because OF COURSE no one would ever put anyone other than a white make anywhere important.

I’m just so sick of this vile stuff.

I have studied the “conservative movement” long enough to understand what it is about, and their goals. I have documented the backgrounds, training, methods and funding of right-wing operatives and how they develop their propaganda and for what purposes.

I do listen to them and read their stuff, to see what they’re up to. I used to have a gig with Media Matters where I’d do a roundup of what their outlets were saying, every morning, with an analysis of the reasons they were saying it, and how that furthered their objectives. That newsletter was circulated to progressive groups and elsewhere. I had to look at things like pictures of decapitated black kids, or drawings of big-nosed greedy Jews. That was a cesspit of the worst of humanity and it left me scarred.

So excuse me for avoiding them and not approving of giving them even wider platforms and bestowing legitimacy.

Separating And Dividing People Up Doesn’t Work

My family lost relatives to the Nazis. My great grandparents came to the US because they needed to flee the Ukraine region to find a place that was safe decades before the Nazis came along.

All kinds of people in the world have fled one place or another to safety – or not made it out in time.

I think geographic/ethnic/religious separation is not the path to safety for people. I also think ethnic/religious -based governments are a mistake. I think Israel is proving that right now.

The historic safety of making way to the USA is threatened now by the world coalition of oligarchs and oligarch-funded movements that is assisting Trump — and that coalition includes Netanyahu’s crowd. If this coalition comes to power in the US next year the safety of so many people with different ethnic/religious and other identities is in grave danger.

You can’t solve the world’s problems by dividing people up into separated groups. This increases ethnic/religious/identity tensions.

Simple Explanation of Modern Monetary Theory (MMT)

We dropped the Gold Standard some time ago and don’t have to round up gold to pay for things anymore. Hence the “Modern” in Modern Monetary Theory. MMT just explains how money works in a modern economy. Government “spends” money into the economy and taxes it back out. The amount not taxed back out (“deficit”) is the amount left circulating in the economy. The total over the years (“debt”) is a measure of the money in the economy. “Balancing” the budget means not putting new money into circulation. “Paying off the debt” means removing all the money from the economy.

Also, selling government bonds is a choice, not “borrowing.” There are good reasons to do it, but it is not “borrowing.” There are good reasons to tax – balance distribution, address inequality, fight the influence of accumulated fortunes, behavior incentives – but it is not “raising revenue.”

Application of MMT: Look at what the US govt did when Covid hit. It kept businesses from going under, kept the economy from the worst crash ever, dramatically cut child poverty, etc, followed by the fastest recovery ever. Compare that to what happened after the 2008 crash when Summers kept the “stimulus” low. It was almost 10 YEARS before things recovered completely – leading to Trump.

Simplest way to understand modern money: learn where banks get the money from to give out loans. (Hint: They “create” it.)

Unfortunately certain well-to-do influential interests benefit greatly from the old ways of understanding money and will do anything to keep it that way.

One More Thing

One more thing about MMT – it meets stiff ideological resistance from certain vested interests because the “gold standard” “kitchen table budgeting” thinking keeps the system working for the wealthy. If government could just spend money without “borrowing” from the wealthy to solve problems, then what do we need the wealthy for?

The conservative game since Reagan/Thatcher has been to cut taxes at the top in order to create deficits, and then demand budget cuts and privatization to get rid of the deficits they created. This is a strategy for gutting government – democracy – and moving wealth upwards. Get pesky government out of the way of the oligarchs and their corporations.

Remember the resistance to solving the 2023 debt ceiling “crisis” by “minting the coin”? Minting the coin was completely legal, and made the problem disappear. The problem was, if people could just mint a coin to pay off wealthy bondholders then why can’t government mint a coin to … you name it.

See Why Minting the Coin Is A Threat To The Established Order:

Minting platinum coins with a face value of $1 trillion and depositing them with the Federal

Reserve is Constitutional and solves the problem. But it brings up questions that shake the foundations of neoliberalism. If we can “mint coins” to pay bondholders, why can’t we mint coins to do things that people want and need? Instead of just relying on private capital (the rich) to make investment decisions and get things done in our economy?

So Biden can do the right thing and just … pay our bills. But then the neoliberal order breaks down. If We (through Congress) can decide to … you name it, then why are we depending on “the investor class” (capital) and “market solutions” etc to decide where to invest, allocate resources, do the planning and everything else?

This Is How Money Works (Video)

Watch this video. The “gold standard” ended a long time ago. Since then economies work in a more “modern” way. Hence “Modern Monetary Theory” – MMT.

Countries no longer round up gold to “pay for” things. They decide on priorities and issue currency – “spend” – as an exchange medium. They impose taxes to both soak up excess currency and rebalance the distribution of wealth.

The currency that is “spent” into the economy and not taxed back out is still unfortunately called a “deficit” and the total over the years is unfortunately called “debt.” This is the legacy of ancient times and the use of gold. (This should be called “National Money” instead of National Debt.)

If a country offers bonds (T-Bills in the US) that is a place for wealthy people to store excess cash. Countries can choose to pay interest on them. This is not “borrowing.”