In an interview with David Johnson of Boston Review, anarchist/activist/anthropologist and author of Debt: The First 5,000 Years David Graeber makes a key point about the “morality” behind austerity movements that is destined to be missed by all influential economists, bankers, presidential candidates and media pundits, but which no one interested in ethics , politics, or economics should miss (my emphasis):
David Johnson: What inspired you to write the book?
David Graeber: It came out of the strange moral power that debt has over people. So many times you’re talking to people about the depredations of the International Monetary Fund in the third world, telling these horrible stories about the thousands of babies dying of preventable diseases because people aren’t allowed to maintain malaria-eradication campaigns or basic health services due to austerity measures and debt servicing, and people respond, “Well, yeah, but you can’t say they don’t owe the money. People have got to pay their debts, come on!” That common-sensical notion not only that it’s moral to pay one’s debt, but also that morality essentially is a matter of paying one’s debts can bring people to justify things that they would never think to justify in any other circumstance. For the most part, decent people tend not to think killing lots of babies is justifiable under any circumstances. But debt somehow changes all that. Why is that?
Let’s try to really pay attention to that question, because as citizens of the modern democratic-capitalist world, we are very well-educated to gloss over it. Continue reading →
US Chamber of Commerce's major contribution to jobs creation dialog: A giant banner taunting the White House across Pennsylvania Avenue.
What’s wrong with this rosy picture of entrepreneurship painted by the Manhattan Institute’s Edward L. Glaeser in his article “Unleash the Entrepreneurs” at City Journal?:
Three years have passed since the financial crisis of 2008, and unemployment rates remain painfully high. As of August 2011, America employed 6.6 million fewer workers than it did four years earlier. To try to fix the problem, the Obama administration has pursued a variety of Keynesian measures—above all, the huge stimulus package of 2009, which included not only direct government spending but also such features as tax credits for home buyers and temporary tax cuts for most Americans.
Such policies ignore a simple but vital truth: job growth comes from entrepreneurs—and public spending projects are as likely to crowd out entrepreneurship as to encourage it. By putting a bit more cash in consumers’ pockets, the tax cuts in the stimulus package may have induced a bit more car- and home-buying, but the next Steve Jobs is not being held back by too little domestic consumer spending. Tax credits for home buyers and the infamous program Cash for Clunkers encourage spending on old industries, not the development of the new products that are likelier to bring America jobs and prosperity.
Unemployment represents a crisis of imagination, a failure to figure out how to make potential workers productive in the modern economy. The people who make creative leaps to solve that problem are entrepreneurs. If we want to bring America’s jobs back, our governments—federal, state, and local—need to tear down barriers to entrepreneurship, create a fertile field for start-up businesses, and unleash the risk-taking innovators who have always been at the heart of our economic growth.
Isn’t the default position of American economic policy precisely what Glaeser is selling as the solution to the nation’s economic problems? It looks to me like advocating hitting oneself in the head with a baseball bat to prevent injuries caused by hitting oneself in the head with a hammer. Glaeser and all “free marketers” are slaves to the notion that entrepreneurship in itself is a panacea for all economic and social ills. What they seem to ignore is that some entrepreneurship can cause economic and social ills. As an example, consider the many franchise-based companies (think food-service) that pay their employees unlivable wages with flimsy benefits packages, forcing many to supplement their incomes with public services like food stamps or to use emergency rooms as primary doctors offices. Continue reading →
Archbishop Timothy Dolan, President of the US Conference of Catholic Bishops, spreading smoke at his day job.
I’ve been focusing on monied interests in the past few weeks, but if you want a striking example of how American democracy has evolved to favor the interests of the powerful over the people, consider this article on Huffington Post by Laura Basset about another form of ungodly influence over the body politic:
A group of men with no real background in law or medicine, but blessed with a strong personal interest in women’s bodies, have quietly influenced all of the major anti-abortion legislation over the past several years. The U.S. Conference of Catholic Bishops may be one of the quietest, yet most powerful lobbies on Capitol Hill, with political allies that have enabled them to roll back decades of law and precedent. Continue reading →
On insurance companies covering everything, that’s one of the choices an insurance consumer has at the moment of purchase. But once you concede your own freedom to set up the guys with guns (government) to decide how much of YOUR money to take for their health care provision, especially a government that has shown themselves so astronomically inept that federal cabinet-level departments have had repeated cases of moneys missing to the tune of even $12 billion for the Dept of Education.
The most notorious moment in the Republican presidential debate the other night revealed something about Ron Paul the “liberty” candidate’s idea of what freedom actually means to him. Clearly some vociferous audience members, presumably members of the Tea Party, think they define it similarly, but I don’t think all Americans do or would. Continue reading →