Pajamas Media

75 Comments

1. BizzyBlog » Latest Pajamas Media Column (’Very Different Economic Times in Red vs. Blue States’) Is Up; Some Follow-ups:

[...] It’s here. [...]

Sep 18, 2008 - 3:12 am 2. John:

If you want to consider economic issues between the candidates, then consider this video, which basically fact-checks Obama’s on McCain during Obama’s DNC speech. It’s good, so far as it goes, at highlighting the reality behind the rhetoric….

http://www.youtube.com/watch?v=kdKUhMWHsHo

Sep 18, 2008 - 4:02 am 3. Snorri Godhi:

Of course, this article does not resolve the issue of whether blue states (a) are in recession because they are blue; or (b) are blue because they are in recession; or (c) are blue and in recession because of a third factor, such as higher house inflation leading to a bigger crash. My guess would be that (a), (b), and (c) are all true to some extent.

Sep 18, 2008 - 4:25 am 4. Austin:

Where are all the green jobs in those states?

I thought the Union could help people keep their jobs?

Sep 18, 2008 - 5:09 am 5. Calanda-Technology.Com » Blog Archive » Latest Pajamas Media Column (’Very Different Economic Times in Red vs. Blue States’) Is Up; Some Follow-ups:

[...] It’s here. [...]

Sep 18, 2008 - 5:28 am 6. Robert Hurley:

From this article you would think that the Democrats were in charge of the economy for the past eight years. This is the most inventive argument I have ever seen. Talk about fantasy!

Sep 18, 2008 - 5:47 am 7. Lisa:

Don’t blame Granholm for Michigan’s economy. The Republicans control the legislature and our biggest employer, the auto makers, pissed away the fortune it made in the 90’s rather than putting money into research on fuel efficient vehicles.

Our taxes are ridiculously light. Our infrastructure is crumbling. School funding is a sham. But these are controlled by the legislature who have blocked Granholm’s budgets.

Sep 18, 2008 - 6:18 am 8. Amphipolis:

Whatever happened to the business cycle? I think Blue State Thinking is as wrong headed as anyone (even though I live in PA), but does not the economy periodically slow down? Is that not good, in the long run? Must there always be a scape-goat?

Banks fail in healthy economies. Risk involves the chance of loss. The denial of this truth, and the desire to have Government try to fix it, leads to Blue State Thinking. Our capitalist message should be realistic and blunt or we will end up with more of the same.

What’s needed is more economic instruction, not more politics.

Sep 18, 2008 - 6:32 am 9. chucklyons:

Michigan taxes light? I’ll need to review my checking account. California? What a mess. I get to have an interesting perspective on this. In Ca, where I live, I pay an incredible amount of taxes to have roads that knock my fillings out as I drive to work. In Michigan, where I assist my parents in their living efforts, the property taxes are as much for their (my) modest home than my Ca home. And the roads that I drive from Traverse City to their house is something I havent seen in Ca in years.
It doesnt have anything to do with Red states or Blue. Dem or Republicans. It just has to do with parties that could give a rat’s butt about the people they are elected to represent.
But at least in California they were able to put partisan politics behind them to pass a anti-cell phone while driving law.

Sep 18, 2008 - 6:50 am 10. Gary S.:

Face it: we’re in a recession, and it’s all Sarah Palin’s fault, along with her running mate John McCain!

Oh, and those WMDs we found in Iraq in 2006? We didn’t find them! We know so, because only one of the three major news agencies reported it. Sarah Palin should never have taken us to war in Iraq in the first place.

And don’t believe those stories about Democrat congresspeople getting kickbacks and special loans from corrupt mortgage companies. Sarah Palin got those loans herself and forced the press to report otherwise.

Can we really trust Sarah Palin to be our president when she is the source of all the world’s problems?

Sep 18, 2008 - 7:08 am 11. Night Owl:

The mantra of the irresponsible 60s liberal culture- anything goes, there are no more rules, no indulgence is too extreme, don’t think – just do it! Well we did it, and now we have to pay for it.

Budgeting wisely, borrowing sanely, setting aside a little every month for the future- you know- boring conservative stuff- became old-fashioned in this golden age of living beyond our means. But no – we the people are never to blame for our excessive exuberance. The gov’t should have stopped us.

We’ve had the Dark Ages, the Age of Enlightenment, the Age of Reason. When I wondered aloud recently how those in the future would refer to the present time, my husband replied, the “Dim Ages”.

Sep 18, 2008 - 7:29 am 12. Joshua:

If there is to be a recession, it will be blue-state thinking that brought it on.

Fascinating. So the Republicans control all three branches of government for six years — followed by two years with a narrow minority in one branch and continued control of the branch that sets our foreign trade agenda — but the problems with the economy are all still Democrats’ fault?

And as long as we’re talking state unemployment rates, you know California has a Republican governor, right? In fact, six of the ten states with the worst unemployment in the country right now have Republican governors, and one of those states is Alaska.

Sep 18, 2008 - 7:47 am 13. Saltherring:

The actual contrast is not “Red State vs Blue State”, but urban vs smalltown/rural. The socio-economic culture of large (blue) cities reflect the effects of long-term socialist government policies, where such policies have effectively divided the populace into two classes. Old-money limousine liberals exist in gated communities of utopian castles, enjoying the culture, cuisine and other ammenities offered by the city. On the other side of the tracks are the dependent classes of indolents, addicts, criminals and other victims of circumstance and/or poor choices. Conditioned by generations of dependence, the idle await the monthly crumbs and promises thrown to them by their elitist, big-government masters. The middle class has long since fled the taxes, crime and failed schools for a better life in the suburbs. An uneasy truce exists between the city’s rich and poor neighborhoods, bonded only by their allegiance to the failed Democrat, socialist machine.

In rural/small (red) town America, you will find virtually the same socio-economic culture that existed in the 1950’s; a culture rooted in family, faith, natural resources, self-determination and hard work. It is a culture where, for the most part, honesty and integrity still prevail, and where a person’s reputation matters. If a neighbor falls upon hard times, others pitch in and help. Republican and conservative Democrat governments keep taxes relatively low, as fewer services are desired or required.

November’s presidential election, however, will be decided in the (purple) suburbs, where those who have escaped the city mix with small-towners looking for higher-paying jobs; where small businessmen and entrepreneurs share the streets with blue-collar and retail workers. In these paycheck-to-paycheck neighborhoods, the economy and taxation are always the primary issues.

In this presidential election, Americans will determine if they desire to remain a market-driven capitalist nation (McCain) or denigrate into nanny-state socialism (Obama). I’m praying we get it right, because reversal from socialism is near impossible. So….which America will you choose for your children and grandchildren?

Sep 18, 2008 - 8:12 am 14. Pope Linus:

I have to agree chucklyons. Here in NYS, we have a Dem assembly and a Rep senate (soon to probably change to the Dems), and the highest taxes in the entire country. (Property taxes on my 1,600 sq. ft., working class neighborhood house: almost $4,000.) Politicians of all stripes could care less about the people they’re supposed to serve. They simply care about reelection, and consolidation of their own power.

The Dems are clearly worse here in NYS, but the Reps have been giving them a run for their money.

In the end, this election should be about limiting the amount of power that elected officials have. Do you want a bigger, more expansive, more powerful centralized government, or do you want less? Even with some of the problems I have with McCain, the choice seems obvious.

God help us all.

Sep 18, 2008 - 8:15 am 15. Two Americas « The View from Alexandria:

[...] 18, 2008 by philo Tom Blumer points out that red states and blue states are faring quite differently. Red states continue to [...]

Sep 18, 2008 - 8:18 am 16. Pope Linus:

“From this article you would think that the Democrats were in charge of the economy for the past eight years. This is the most inventive argument I have ever seen. Talk about fantasy!”

Over the past eight years, the economy has performed remarkably, growing at a brisk pace while keeping unemployment low, on average.

Just remember who was screaming to have lenders provide loans to the “poor” in this country, those who were deemed loan risks–Bill Clinton, Hillary, Barney Frank, et al. They got their way, those “poor” folk couldn’t keep up with the loans, and enter the sub-prime disaster. Wise up please.

Sep 18, 2008 - 8:19 am 17. solomonpal:

Governor Palin,
I live in red state Alaska. Have a freezer full of fish and game,pulling 95,000 a year…(wife about 45)House is payed off…Oh yeah…Thanks Governor Palin for being such a terrific governor…Oh and thanks for the 3200$ oil dividend…Hmmm, lets see,3200$ per person x4 in the family = . And I like the idea there are no state taxes. Life is good. And if you don’t make it to the white house…you are welcome back as far as I’m concerned to continue your current job.

Sep 18, 2008 - 8:23 am 18. Another View:

Recession – A period of general economic decline; specifically, a decline in GDP for two or more consecutive quarters.

Folks it’s been a recession.

The author is a idiot. Don’t waste your time trying to find his angle. This is super duper spin.

And because the majority of us are fiscally conservative. That doesn’t mean our Vote should be for war mongering neo-cons. That’s the game they play. They try to say if we are conservative in any way we must also be Neo-cons. Sorry not true. Because I save my money and pray doesn’t mean we should globalize the world with our form of democracy. That’s where the GOP loses me. Of course Abortion is horrible. But what Sally does she will have to live with. But war and economics we all have to live with. And no matter how bad the majority of us wanna be republicans. In reality most of us are democrats in the wallet.

2 Democratic administrations in the past 55 years. The Dems have had congress two years. Two years. That’s all. Don’t believe the rhetoric. Do your own research. Don’t rely on this crap for information.

Sep 18, 2008 - 8:40 am 19. ZEITGEIST:

[...] Related item here. [...]

Sep 18, 2008 - 8:59 am 20. Javelin:

Guess what you mental midgets
Bush is tesponsible for most of this mess with the subprime mortgages and the ensuing bailouts. He controls the Execuive Branch, not Congress, which includes the SEC. Even McCain is calling him on it. I realize that Blumer is nothing more than a second string Limbohead with no integritry, but spare us this Blue State Thinking BS, what’s next Blue State Science? Blog trash for blogtards severed up hot and steamy!

Sep 18, 2008 - 9:15 am 21. W::

Did this author used to write for Pravda? He is as reality-defiant as GM’s management. As tone deaf as the Bush admin has been for 8 years.

This is the linguistic equal of Rosemary Woods’ famous pretzel photo showing how she must have erased the tapes. Try this speech on Main Street USA and you’ll be laughed out of town. Or lose an election like George Bush I did in 1992 (”what recession?”)

If the Delay/Lott/Dennis(”when’s the next meal?”) Hastert Republicans hadn’t been obsessed with pork and prohibiting gays from suffering the same nagging spouses and big divorce payments as the rest of us, they might have had time to monitor the real estate bubble. Rein in lenders and those feral fund types that treated mortgages like play money.

But noooooooo. Hastert spent more time defending the man with $90,000 in his freezer than the taxpayer. Bush spent more time in Crawford than looking at the family checkbook once and a while.

We’re safe from gay marriage but our 401k is in the tank, its costs over 401 to put gas in the tank, no refineries have been built, and the best the Repubs can offer is an old maverick and a young governor. But its somehow Pelosi’s fault? That might stick if the repubs had spent the last 8 years acting like real Republicans.

Lots of people will vote McCain because they’re old enough to know better than to vote for a Democrat itching to enact new taxes and expand the governemnt like a fungus. But lots of younger people won’t. And this article is one reason people will turn to Obama: they’re convinced no one on the other side would know reality if it bit them.

Sep 18, 2008 - 9:18 am 22. Nine-of-Diamonds:

“Execuive Branch”. “Integritry”. Nice job. keep exposing them mental midgets, my friend.

Sep 18, 2008 - 9:23 am 23. CALIndie:

Joshua – Arnold is a RINO. California has been and will continue to be pilfered and picked clean by liberal socialist Democrats. So Joshua, you think more socialism, more taxes, more government jobs, more government handouts and entitlements, more unions etc. are the answer for America?

Joshua, please tell me how more government in any sector of society is a benefit to individual rights and ordered liberty as put forth by the U.S. Constitution. I’m eagerly waiting to hear your rationale for bigger government and more taxes. Please include in your instruction how the criminally insane levels of government waste and the exponential level of corruption that come with a bureaucrat managing my money better than I can are good for this country. I can’t wait for you to enlighten me.

Saltherring – Thank you for your astute clarification! I hope Joshua can make his case for socialism (he’ll surely deny the term) in such a succinct fashion.

Another View – “In reality most of us are democrats in the wallet.” Oh yea, we love absurd government waste, redundant government entitlement programs, strata upon strata upon strata of wasteful government bureaucracy, runaway taxation with faux represenation and on and on. When I see a Democrat I put my hand on my wallet until the danger has passed. What you should have said is; In reality, all of us have a Democrat IN our wallet.

Another View, you are a NEO-COMM! We’re not buying your thinly veiled dis-information and propoganda. You and your kind are what’s wrong with this country. Liars, cheats and cons that will do or say anything to perpetrate your money grubbing grab for power against hard working Americans (read: Barack Obama).

Sep 18, 2008 - 9:36 am 24. Kevin:

Another View,
what??? Put down the hash pipe, you socialist.
The New Deal – Democrat
The Great Society – Democrat
The Community Redevelopment Act – Democrat
Javelin,
what??? you are so misguided and erroneous, its laughable. Bush, in 2003, 2006, AND 2007, called for reform and enhanced oversight of the GSEs. The root cause is as follows (pay attention):
The 1977 Community Redevelopment Act under Carter forced banks to lend and do business in unprofitable areas. In 1992, Clinton strengthened the CRA. In 2002/3, Jamie Gorelick invoked community lenders to “CRA Your Way” and the acceleration of alternative mortgage products was on. The Boards of both Fannie and Freddie WERE dominated by democrats. The four biggest recipients of donations from Fannie and Freddie WERE democrats. No matter what you think, “fairness” cannot be legislated. There are those who simply are not responsible enough to handle a mortgage. Javelin, your success in life is directly related to how quickly you shed your petulant, despotic, childish liberalism. It happened to me in my early twenties and I have never looked back.

Sep 18, 2008 - 9:36 am 25. Rev Max:

The Tax Foundation has released a fascinating report showing which states benefit from federal tax and spending policies, and which states foot the bill.

The report shows that of the 32 states (and the District of Columbia) that are “winners” — receiving more in federal spending than they pay in federal taxes — 76% are Red States that voted for George Bush in 2000. Indeed, 17 of the 20 (85%) states receiving the most federal spending per dollar of federal taxes paid are Red States. Here are the Top 10 states that feed at the federal trough (with Red States highlighted in bold):

States Receiving Most in Federal Spending Per Dollar of Federal Taxes Paid:

1. D.C. ($6.17)
2. North Dakota ($2.03)
3. New Mexico ($1.89)
4. Mississippi ($1.84)
5. Alaska ($1.82)
6. West Virginia ($1.74)
7. Montana ($1.64)
8. Alabama ($1.61)
9. South Dakota ($1.59)
10. Arkansas ($1.53)

In contrast, of the 16 states that are “losers” — receiving less in federal spending than they pay in federal taxes — 69% are Blue States that voted for Al Gore in 2000. Indeed, 11 of the 14 (79%) of the states receiving the least federal spending per dollar of federal taxes paid are Blue States. Here are the Top 10 states that supply feed for the federal trough (with Blue States highlighted in bold):

States Receiving Least in Federal Spending Per Dollar of Federal Taxes Paid:

1. New Jersey ($0.62)
2. Connecticut ($0.64)
3. New Hampshire ($0.68)
4. Nevada ($0.73)
5. Illinois ($0.77)
6. Minnesota ($0.77)
7. Colorado ($0.79)
8. Massachusetts ($0.79)
9. California ($0.81)
10. New York ($0.81)

Two states — Florida and Oregon (coincidentally, the two closest states in the 2000 Presidential election) — received $1.00 in federal spending for each $1.00 in federal taxes paid.

Sep 18, 2008 - 9:39 am 26. Jeff:

What people don’t understand is why some of us are so against the current Republican ticket, but we have an obligation to fight against history ever being repeated again. Many of us out here are not fighting for the Democratic campaign but are fighting against an ideology.

1) An ideology that completely mirrors the ideology of this past 8 years.
2) An ideology that recognizes the few while completely disregarding the masses.
3) An ideology that believes in taking military action against Iraq, an incident that is completely unrelated to 9/11, without solidifying our claims beforehand. In the present, we have found no evidence of weapons of mass destructions or a tie to Osama Bin Laden. The devastation of this war has cost us over 4,000 of our brave troops and counting, over 1/2 trillion dollars of taxpayer’s money and counting, and over 1 million Iraqi lives unrelated to the terrorists or insurgency.

Cost of the Iraq War — http://www.nationalpriorities.org/costofwar_home

4) An ideology that still believes that the Iraq War is the right war on terrorism when the Afghanistan War should had been the right war on terrorism, where Osama Bin Laden actually was until he slipped into the mountains and into Pakistan’s territory now. The Iraq War also diverted our attention away from the Afghanistan War. We now have extended our resources in two separate places and have heightened our risk to our troops, our expenses, and creating another dilemma that will take quite some time to finalize. The Iraq War will not go away overnight and it is now our obligation to see it all the way through for God knows how many more years. This has also been the most unpopular war in the eyes of the world’s communities.
5) An ideology that believes that we are at our safest state since 9/11, when a recent terrorist plot was still trying to enter Great Britain’s airports with liquid explosives heading directly to us, but thankfully the plot was foiled. While in Afghanistan, the terrorists are regrouping and strengthening and we have recently suffered another high casualty to our troops yet again within this past month. We currently have the least amount of alliances in the world’s communities due to this unpopular Iraq War. True national securities are the ties that bind us to our world’s communities and the ties that bind them to us.
6) An ideology that vetted one of the most inexperience VP ticket in history, from foreign policies to national defense. If God forbids that anything happens to this President if elected and is stricken with illness, this VP will be running the country.
7) An ideology that believes in “the fundamentals of our economy are strong” while we are facing the highest mortgage foreclosure crisis, high unemployment rate, and the largest collapse of our financial infrastructures since The Great Depression of 1929.

This is an ideology that a lot of us in America are against. Whether this ideology is in the Republican or Democratic ticket is not the main issue but the fact is that America does not want to fall into another 4 more years of devastation. We cannot afford this anymore.

Sep 18, 2008 - 9:43 am 27. hobbit:

Another View? I guess so.

A ‘decline in GDP’ means a reduction in the GDP (negative growth) , not ‘less growth then before’.

No wonder Obama is doing so well…

Sep 18, 2008 - 9:49 am 28. CALIndie:

W – I’m sure we’ll have a clear, succinct explanation from Joshua or Javelin posted here soon that will enlighten us all on the merits of bigger government, increased taxation and centralized social bureaucracy. Stay tuned for Collectivism 101!

Communism(read: socialism left unchecked)has failed globally and murdered millions who have resisted it’s benevolence. I’m sure Joshua and Javelin will put all of those facts to rest by explaining how Barack Obama is different and smart and “clean” and so much more articulate than all the other politicians and dictators who have come down this path before him. Afterall, he is a Community Organizer extraordinaire! No worries! Barack will make it work and they are going to tell us how, so stay tuned W.

Sep 18, 2008 - 9:57 am 29. tomw:

CALIndie:

Imagine if, our financial systems had been properly regulated? Oh sure, business would have suffered some, not so many people would have bought homes, etc, and it would have cost $ to regulate it. How much would it have saved? $85 Billion.

And while nobody is in favor of more taxes, which is the better option when the government faces a $500 Billion deficit:
A: Raise taxes
B: Continue to borrow money from china to finance our government.

Obviously the 3 option would be to cut spending, but is either candidate talking about doing that? No. Obama want to also fincance health care for americans, while McCain wants to fight more wars. Take your pick.

Sep 18, 2008 - 10:06 am 30. W::

Jeff: infrastructure is falling to pieces, despite huge taxes in major part because of the escalating percentage of city and state budgets dedicated to government employee pension and health benefits. It has nothing to do with Bush and everything to do with state governments.

One California city filed for bankruptcy recently over that issue. Paying people to retire at 55 or even 50, with full benefits and a huge pension is not something any city or state can afford.

Illinois, Nevada, California and others admit they are cutting back services–to maintain a lush pension for desk-bound state employees and teachers that never faced a risk of being fired or fired at. Seriously, check this out. You’ll be stunned.

Sep 18, 2008 - 10:18 am 31. Jeff:

just remember there are very few liberal small businessmen … they are the front lines of our economy and they know that liberal tax and spend policies do nothing but hold them back …

Sep 18, 2008 - 10:18 am 32. CALIndie:

Rev Max – So what’s your point, other than America is over taxed and under represented.

You didn’t comment on the cost of the bureaucracy that it takes to capture tax dollars from each state and re-distribute them back to the same state or elswhere. How can any state send in $1 and get $1 back without someone else paying for it? This “fuzzy math” is exactly why we need LESS federal government intrusion and taxation. It’s a ponzi scheme through and through.

Runaway federal taxation and spending in the form of massive social programs like “free” healthcare and “free” government education are not solving America’s problems, they are creating them. Show me one federal government run program that solves more problems than it creates… there isn’t one! Then factor in the cost of these “free” federal programs and you quickly realize re-distribution of wealth in any form is wrong and ultimately ineffective.

This simply makes the case for the core of Republican ideology: Cut federal taxation and intrusion and allow individual states, cities, municipalities, counties etc. to manage their own money. Get the federal government out of my life and get them back to their constitutional responsibilities of national defense and infrastructure.

Politicians of every stripe and affiliation will feed at the federal trough of our seemingly endless supply of tax dollars until we cut them off. Then we can fight them at the state and local level to minimize their addiction to spending other people’s money (OPM) to buy votes and power.

Sep 18, 2008 - 10:28 am 33. Agoraphobic Plumber:

“Another View? I guess so.

A ‘decline in GDP’ means a reduction in the GDP (negative growth) , not ‘less growth then before’.

No wonder Obama is doing so well…”

Heh. I was going to respond in much the same vein, but I can’t top that.

Sep 18, 2008 - 10:29 am 34. BizzyBlog » Isn’t It a Sign That You’ve (Sort of) Arrived ….:

[...] …. when a bunch of utterly pathetic whiners have nothing better to do than waste precious time and bandwidth — because you’re supposedly not writing about what they think you should be writing about, even when you are? [...]

Sep 18, 2008 - 10:40 am 35. CALIndie:

tomw – Government is corrupt and broken at every level. More government and taxation is not the answer and it NEVER will be.

“Obviously the 3 option would be to cut spending, but is either candidate talking about doing that? No. Obama want to also fincance health care for americans, while McCain wants to fight more wars. Take your pick.”

What do you think McCain and Palin are talking about when they say Washington needs to be REFORMED? What do you think they are talking about when they say federal earmarks (pork barrel spending) must go away? You can argue that they are blowing smoke for political gain, but there is no doubt they are talking about CUTTING spending. Obama? Not so much.

Your remark about McCain “…wants to fight more wars” is ignorant. How many times has McCain said he “hates war?” I think he is more than familiar with the brutalities of war. I really don’t understand your mentality in thinking if we just ask evil people around the world to play nice with us they will comply. The #1 role of the President is to keep my family safe from nut jobs around the world that want to kill us (McCain) not tax me into oblivion so he can increase the size of government social programs (Obama). McCain doesn’t want to wage war, war and more war, that’s liberalism talking. McCain wants to show bad people around the world that America is willing to defend democracy and freedom up to and including war so these evil people will be motivated to be careful, very careful as world citizens. If they poke us in the chest, we just might poke them back.

Peace through strategic aggression is a fact of life on this planet not a Republican psychological disorder as liberals make it out to be. I’ll prove my point: If your local law enforcement stopped carrying weapons would you be more or less safe against thugs and criminals in your city?

Liberals want conservatives to just shut up and pay more and more taxes for more and more government waste and when liberals get their arse in a sling they want someone with a gun to run and bail them out of danger. All the while, the same liberals declare moral indignation and intellectual elitism at the very sight of the barbarian conservatives they depend on for the very existence of their socialism and free speech. Well, you’ve got yourselves convinced. Good luck with your circular reasoning.

Sep 18, 2008 - 10:58 am 36. Bill:

Mr. Hurley, they WERE in charge of Fannie Mae and Freddy Mac, and Democrats Chris Dodd and Barnie Frank were instrumental in blocking Bush, and McCain, efforts to clean up those agencies. Would you concede that Fannie Mae and Freddy Mac are the two biggest villans in the unfolding drama we are witnessing?

Sep 18, 2008 - 11:00 am 37. Bill:

Mr. Hurley, they were in charge of Fannie Mae and Freddy Mac, and Democrats Chris Dodd and Barnie Frank were instrumental in blocking Bush, and McCain, efforts to clean up those agencies. Would you concede that Fannie Mae and Freddy Mac are the two biggest villains in the unfolding drama we are witnessing?

Sep 18, 2008 - 11:01 am 38. Jeff:

Jeff the imposter posted Sep 18, 2008 – 10:18 am,

NOTE TO PJM:
Ed Wallis is posting as me again and will not stop.

Sep 18, 2008 - 11:16 am 39. AlexinCT:

Hey Rev Max. Why are you complaing about how blue states get less federal dollars compared to red states? According to Joe Biden this is the stuff patriots do, so these blue states should actually give more to prove they are really patriotic. Don’t you want to help the poor?

And remember that if your logic is to be applied to red vs. blue states Rev Max, then it can also be done against municipalities. How would you leftist feel if we used this logic you espouse above to deny the poor urban areas that seem to be endless tax dollar pits money? I have a feeling you suddenly would not like that.

All the stupid stuff asside, the reason most government funding goes to the red states is because all the growth is there. You need infrastructure to keep the growth going and the red states have been neglected forever by the feds. Blue states, and I live in one, are no longer growing as much as they used to because of their economic and tax practices. In fact people are fleeing these states for the red states.

Sep 18, 2008 - 11:22 am 40. Justaworkistiff:

Conservative Republicans always want the government to stay out of business and avoid regulation as long as they are making lots of money. When their greed, however, gets them into a fix, they are the first to cry out for rules and laws and taxpayer money to bail out their businesses. Obviously, Republicans are socialists. The Bush administration has decided to socialize the debt of the big Wall Street Firms. Taxpayers didn’t get to enjoy any of the big money profits on the phony financial instruments like derivatives or bundled sub-prime paper, but we get the privilege of paying for their debt and failures.

Let’s just consider the money. The public bailout of insurance giant (becoming a dwarf) AIG is estimated at $85 billion. According to one report, that’s more than the Bush administration spent on Aid to Families with Dependent Children during his entire time in office. That amount of money would also pay for health care for every man, woman, and child in America for at least six months.

How did we get here?

That’s pretty easy to answer, too. His name is Phil Gramm. A few days after the Supreme Court made George W. Bush president in 2000, Gramm stuck something called the Commodity Futures Modernization Act into the budget bill. Nobody knew that the Texas senator was slipping America a 262 page poison pill. The Gramm Guts America Act was designed to keep regulators from controlling new financial tools described as credit “swaps.” These are instruments like sub-prime mortgages bundled up and sold as securities. Under the Gramm law, neither the SEC nor the Commodities Futures Trading Commission (CFTC) were able to examine financial institutions like hedge funds or investment banks to guarantee they had the assets necessary to cover losses they were guaranteeing.

This isn’t small beer we are talking about here. The market for these fancy financial instruments they don’t expect us little people to understand is estimated at $60 trillion annually, which amounts to almost four times the entire US stock market.

Want more? Let me know. And this is not o say Democrats are blameless…not at all..it’s just that teh screaming over things like “Socialized Medicine” smells a tad off when GWB and the Republicans are socializing the banking industry’s foolsih risks.

Sep 18, 2008 - 11:28 am 41. Alice Finkel:

Blue State “POR” thinking will end up destroying the economies of North America if allowed to do so. It is a sick, deranged, and corrupt Tony Rezko mentality that involves organised crime, labour unions, and the Democratic Party all working together. Democratic Party political machines, corrupt to the core, encouraging vote and government contract fraud. It doesn’t get any better than that, if you’re Charlie Rangel, Chuck Schumer, or Mayor Daley.

Sep 18, 2008 - 11:58 am 42. Calanda-Technology.Com » Blog Archive » Isn’t It a Sign That You’ve (Sort of) Arrived ….:

[...] …. when a bunch of utterly pathetic, mostly profane whiners have nothing better to do than waste precious time and bandwidth — because you’re supposedly not writing about what they think you should be writing about, even when you are? [...]

Sep 18, 2008 - 12:07 pm 43. CALIndie:

justaworkistiff – “Conservative Republicans always want the government to stay out of business and avoid regulation as long as they are making lots of money. When their greed, however, gets them into a fix, they are the first to cry out for rules and laws and taxpayer money to bail out their businesses.”

You’re painting with an awfully big brush here my friend. Even so, let’s say you’re right, greedy conservative republicans always want a federal bail out when their a** is in a sling. Do you truly think this is my political view? I’ve been a Reagan Democrat all my life. My parents were too. Greed is in no way exclusive to conservative republicans. Corruption and greed are a systemic disease in politics at every level in this country.

For this reason, like John McCain, I am a Federalist. I want more and more government responsiblity at the state and local level where “we the people” can have grassroots impact and not mired in long distance federal bureaucracy that by it’s very nature excludes “we the people.”

Who do you think is going to reform & change Washington? Barack Obama? Arguably one of the most liberal Senators on the planet who’s track record is as partisan as it is thin or John McCain & Sarah Palin who have taken on their own party? Behavior predicts, past behavior predicts future behavior… always! I don’t trust Washington or politicians in general and I certainly don’t trust slick marketing, lofty rhetoric and grandiosity sold as a magic potion for what ills our country… and it is sick, on both sides of the aisle.

Sep 18, 2008 - 12:14 pm 44. Justaworkistiff:

Ok CAL, If past ehaviour predicts future behaviour then how about Mr McCain’s past behaviour just in regards to finacial regulation.

John McCain’s was a pal with Charles Keating. They met in 1981 and Keating dumped $112,000 in the McCain campaign bank accounts between ‘82 and ‘87. A year before McCain met with the FHLBB regulators, his wife Cindy and her father, according to newspaper reports at the time, invested about $360,000 in one of Keating’s shopping centers. The Arizona Republic reported McCain and his wife and their babysitter took nine trips on Keating’s private jet to the Bahamas to stay at the S&L liar’s decadent Cat Cay resort. The senator didn’t pay Keating back for the plane rides until years later when he was under investigation.

McCain wasn’t found guilty of anything but bad judgment, which is an historic understatement. Republicans, who led deregulation of the S&L industry, delayed the bailout until after the 1988 election to make sure George H. W. won the White House. The cost to taxpayers for helping these 747 bad actors in the S&L industry was finally estimated at $1.4 trillion. If the bailout had begun in 1986 instead of after the presidential election, the cost would have been contained at $20 billion.

And now the Republicans who engineered our present crisis and got us into the S&L debacle of the 80s are before us saying the markets need regulation. No, actually, they don’t need regulation. Why don’t you Republican capitalists who believe in the free markets get out of the damned way and let them work and allow these various financial nuthouses be crushed by the weight of their own stupidity? When it is all over, we’ll have sane and sober people create laws to make sure it doesn’t happen again, assuming we survive this chaos.

OH, and I’d love to read some substantial documentation that John McCain was a Federalist in the true sense of Jefferson, Hamilton, etal.

Sep 18, 2008 - 12:35 pm 45. RKV:

Excellent post Rev Max. The way out of that is to shrink Fedzilla. There are things Fedzilla should do, and many things it is currently doing which it should not. Farm subsidies (e.g. ethanol) nuke ‘em. Dept. of Education, dump it. Social Security – privatize the whole damn enchilada. And so on. Sell large chunks of Federal land and lease offshore for drilling while you’re at it.

Sep 18, 2008 - 1:04 pm 46. Calanda-Technology.Com » Blog Archive » Latest Pajamas Media Column (’Very Different Economic Times in Red vs. Blue States’) Is Up; Some Follow-ups, Including ‘Barney’s Rubble’:

[...] It’s here. [...]

Sep 18, 2008 - 1:06 pm 47. Another View:

Hobbit/Plumber
Hey I’m no hypocrite. I screwed my research up Shame on me.

But now i’ll play politics and say coupled with the Debt. It’s a recession. (u got me)

But that guy Kevin;
I am capitalist. Just not a imperialist.I can also point Economic policy not to mention Domestic and foreign screw ups. But you already know about the infinite B.S.

Sep 18, 2008 - 1:31 pm 48. Ex-fetus:

If the Demonrats win the White House, the numbers will get worse but it won’t be a recession. Go figure!

Sep 18, 2008 - 1:33 pm 49. Another View:

AlexinCT:

Hey Rev Max. Why are you complaing about how blue states get less federal dollars compared to red states? According to Joe Biden this is the stuff patriots do, so these blue states should actually give more to prove they are really patriotic. Don’t you want to help the poor?

And remember that if your logic is to be applied to red vs. blue states Rev Max, then it can also be done against municipalities. How would you leftist feel if we used this logic you espouse above to deny the poor urban areas that seem to be endless tax dollar pits money? I have a feeling you suddenly would not like that.

All the stupid stuff asside, the reason most government funding goes to the red states is because all the growth is there. You need infrastructure to keep the growth going and the red states have been neglected forever by the feds. Blue states, and I live in one, are no longer growing as much as they used to because of their economic and tax practices. In fact people are fleeing these states for the red states.

Alexin yeah lets talk about how the wealth was accumulated and how that affects society. Don’t think you can pick a part of the story and only tell it from that point. There are a whole lot of folks whose families would be better off if they were paid appropriate wages or wages at all.

And I am in the highest tax bracket so I pay plenty. And I live in North Jersey where the cost of living and taxes and tolls slam you. But Fair is fair. And as long as I eat Steak my neighbor should not starve. In another town or not.

Sep 18, 2008 - 1:42 pm 50. CALIndie:

JustAstiff – I rest my case!

I don’t trust a politician, not a damn one! So here we are, our current reality is… John McCain or Barack Obama.

Would you like me to run through the list of negatives Barack Obama has going for him today, currently, as in, right now? I didn’t think so.

Take off your rose colored liberal glasses and just try to be an American and you’ll see that my stance on Federalism is more than likely what’s best for America. Now I say that knowing full well there is a long line of politicians trying to screw that up too. I’m not so naive to think globalism is going away either. Ideally, we would have strong state governors and city mayors that play a bigger role in American politics and take the federal dictators down a notch or two. I think you’re going to be un-pleasantly surprised to find out just who the real initiators are behind the sub-prime debacle. Hearings are on the way and liberals (Chuck Schumer, Chris Dodd, Barack Obama et al) have a “pucker factor” in the 10+ range right now.

We’re in a boat load of shite and in the end it will be less government, less taxes and more regional autonomy that will win the day. Greed will not go away, corruption will not go away and liars, cheats and cons will aspire to political office in droves. Still, I’d like to have them in my sights locally and statewide vs. back on Capitol Hill hiding behind their lofty positions while camouflaged in my money and yours. It’s time to kick some political arse and throw the bums out. I don’t think Obama stands a snowballs chance in hell of getting this done based on his past behavior.

Sep 18, 2008 - 1:42 pm 51. cedarford:

GaryS – Oh, and those WMDs we found in Iraq in 2006? We didn’t find them! We know so, because only one of the three major news agencies reported it.

Amazing. An unreconstructed Neocon loon stepping out of a parallel universe where Bush is the Beloved Maximum War Leader & New American Churchill, keeping our Special Friend Israel, safe from all those meanies so they can work building peaceful new Settlements instead. Vast quantities of WMD were found! The press is keeping it hushed up!

===================

Sep 18, 2008 - 1:48 pm 52. Joseph Marshall:

This article is an incredible mixture of incoherence and intellectual dishonesty. The main thrust of the article’s argument is this: if there is any significant growth in the GDP, there is no “recession”. The article then proceeds to cherry pick “experts” who make the same argument.

Now that’s not so bad, though the cherry picking was really unnecessary–the premise is clear enough to stand or fall on it’s own. Moreover, if the “official” definition of a “recession” is two quarters of negative GDP growth, [which the author clearly assumes in one of those cases where he cites himself as an authority] then the argument being made is a tautology. In either case, the collateral “arguments from authority” are an irrelevant waste of the reader’s time.

Now here is where the first step of the intellectual dishonesty starts: a tautology such as this is not an argument–and the true argument over the issue is actually that of whether or not GDP growth should be the sole measure of “recession”. The person who makes that argument explicitly is Rex Nutting. Nutting argues that the more accurate measures are “jobs, income, and wealth”.

Since it is clear from context that Obama is making the same argument implicitly, that Nutting is making explicitly, the presence of “Obama, Pelosi, Reid, pundits, media, and political elites” in the article is mere irrelevant Pavlovian window dressing intended simply to call forth the obligatory hissing of these villains whenever they come on stage.

Nutting might be wrong, but the actual argument he makes is never even described or addressed, let alone refuted.

Now the intellectual game of three card monte goes even further than this. All of a sudden we are asked to “assume” a recession and look at all the terrible times happening in the states whose electoral votes went to John Kerry, as opposed to the good times happening in the states whose electoral votes went to George W. Bush.

So now the argument runs as follows: There really is no “recession” at all, but if there actually were, it would all be confined to the “blue” states because of their bad political management.

How do we know this? Well, Texas, Florida, and Arizona, “created one-third of all U.S. jobs in the past 10 years, and their per-capita income growth far outpaced the national averages.”

Okay, now do we have some apples to compare to apples? Do we have similar figures for any state that sent its electoral votes to John Kerry?

No.

So what kind of oranges do we have to compare to our apples? Well, seasonal unemployment in July for 5 completely different “red” states from Texas, Florida, and Arizona, “averaged well below 4%”.

Our author cites a very fine table from the US Bureau of Labor Statistics, which gives the individual figures, but the “average” of all five of these states together is the author’s own.

Do we even have an orange to compare to this? Do we have an “average” of the five lowest unemployment figures among the “blue” states? No. Do we even have a Clementine of the “average” of the five highest unemployment figures in those states? No.

We have three Mangoes and one Kiwi: the individual July unemployment figures for California, Michigan, Ohio, and Illinois.

Supposedly the California figure is an “August” figure. I assume this is a mere slip of the PC keyboard. The table cited has no August figures on it that I can see.

Now, of course, Ohio was not a “blue” state, but since it happened to elect a Democratic governor in 2006, it might as well be. Just like Arizona is clearly still a “red” state, even though it currently has a Democratic Governor, as well.

Repeat after me: i-n-c-o-h-e-r-e-n-t.

Well, gee. At least we have a table to work with that has real data on it. And we can notice a few things without having to suddenly pull “averages” out of our back pockets.

The following states had July unemployment figures of +6%, in descending order: Michigan, Mississippi, Rhode Island, California, Illinois, Ohio, South Carolina, Alaska, Tennessee, Kentucky, North Carolina, Nevada, Missouri, Indiana, Georgia, and Florida.

Of these, four are “blue” states and 12 are “red” states. This is about 22% of all “blue” states and about 27% of all “red” states.

Moreover, the following states had unemployment rates of -4.5%, in ascending order: South Dakota, Nebraska, North Dakota, Utah, Wyoming, Montana, Idaho, New Mexico, Iowa, Delaware, Virginia, and Maryland.

Now two of these are “blue” states and ten are “red” states. But I’m sure everyone can see immediately that these lucky states fall into two contiguous geographic regions, both with their own well-known and distinct economies: the Great Plains/Rocky Mountain West, and the Tidewater region immediately below the Mason-Dixon Line.

Now I hold no brief to “prove” anything about why these figures differ. But I think it is clear that it has little or nothing to do with the 2004 election. Nor do I see any reason to cite new evidence and argue whether or not we are in a “recession” or what might happen in consequence.

Until we have a genuine economic analysis and argument to respond to, attempting such a thing is pointless.

Sep 18, 2008 - 2:35 pm 53. TomP:

Congress creates the messes and who attempts to fix them?
Congress.
Who then make things worse.

Wasn’t it liberal idea to force banks to loan mortgage money to folks who could’nt pay? What a progressive idea that was.

Isn’t it the Dems who ran Freddy and Fanny? And donated all that money to Barrak and Chris?

Why they’re going to ‘progress’ us right into 3rd world status in the blink of eye.

Sep 18, 2008 - 2:38 pm 54. AlexinCT:

Another View: “And I am in the highest tax bracket so I pay plenty. And I live in North Jersey where the cost of living and taxes and tolls slam you. But Fair is fair. And as long as I eat Steak my neighbor should not starve. In another town or not.”

Ah typical loony lib with zero common sense. Why are you eating steak Another View? Me, I usually do because I busted my ass, studied hard, worked hard, and continue to do so and can afford steak. Most of my neighbors do the same. Let us just say we are all hard working and making good money. In fact I am in the top bracket myself. And if any of them was starving I would lend a helping hand. In fact I have but that is neither here nor there. This has nothing to do with fairness: it is about making sacrifices and working hard. I know quite a few people that think I am an idiot for working so hard while they sit at home and play computer games all day and collect from the government. I also see many of them eating steak and laughing at me because I paid for it whiles they where having fun.

What you seem to imply is that those that make the wrong choices in life should then be propped up or protected from the consequences of those choices by a government that takes from the people that do the right thing. Please explain to me how this mentality will do anything but re-enforce the belief that it is a waste of time to do the right thing, especially when it is difficult, if you always can avoid the bad consequences? How is this fair to me? I avoided all the mistakes, worked & continue to work hard, did not fall for the instant gratification or even much of the delayed gratification temptation, and in general am reaping the rewards of those choices, actions, and sacrifices. And yet here you are telling me that now I need to give up even more of what I already do so people that think like you can buy votes? No Another View, this has nothing to do with fairness at all. If it did I would be legally allowed to beat you up for trying to punish me for doing the right thing.

You collectivists are all stupid. And the well off ones like you that feel guilty and want to make good on that guilt with other people’s money are even dumber. Spare me the talk about social justice. It is code for government control.

Sep 18, 2008 - 2:52 pm 55. RE:

The left is famous for wanting to reach into somebody else’s pocket to pay for their own personal sense of fairness or guilt.

Sep 18, 2008 - 3:48 pm 56. Donna V.:

I live in Wisconsin, a blue state with one of the highest property tax rates in the country. About 6 months ago, a liberal relative of mine, a man who has been a state employee for his entire working life, informed me he and his wife are thinking of moving to Tennessee after he retires. The cost of living is lower there, you see. Gee, I wonder why? This man has never voted GOP and I can promise you he won’t change when he moves to Tennessee.

Red staters, be afraid. Be very afraid. The bozos who have wrecked our economies with ruinous taxes and nanny-state mentalities aren’t satisfied with soiling their own nests. They now want to move to your state and wreck it too.

(I attempted to dissuade him by talking about all the bitter gun nuts in Tennessee. He doesn’t much like guns, you see.)

Sep 18, 2008 - 6:14 pm 57. lee:

California had a budget deadlock for about almost a year now, and this seemingly happens every year. It’s mind boggling, since we recalled a (democrat) governor partially for this reason.

I believe the new budgets requires no new taxes, no more borrowing (surprise, a GOP cause), although it calls for a temp hike in sales tax. No new / raising taxes in a bad economy = no brainer. Not for the democrats it seems. They drive me nuts.

Right wingers from Virginia, please school California’s liberal politicians on how to spend wisely and within our means.

Sep 18, 2008 - 6:51 pm 58. Rubicon:

To keep the talk going…. Democrats have effectively controlled or seriously affected economic decisions for the past eight years. Democrats in fact have had a majority for the past two years, but have done little.
Our economy, & its recent bank & investment failures, are attributable to Republicans AND Democrats & their actions over the past 15 years or more.
The Community Reinvestment Act (CRA) seriously harmed this nations investment & lending systems. Making “sub prime” (less than credit worthy” loans, based solely on supposed discrimination, caused most of this problem.
We cannot lean money to those who we know cannot foot the bill if rates change or other factor affect the persons obtaining loans. As property values dropped (they do on occasion as they also on occasion increase) the speculative & questionable loans, fell apart.
The “blame” for that belongs squarely with rabble rouser’s seeking something special while assuming their will be no consequences if the borrower fails.
In the end, harsh as it is, it is NOT the responsibility of all Americans to bail out those who took these loans. The socialists want us all to absorb the costs, under the guise of fairness. Why is it fair for all to pay for poor borrowing choices brought about by threats of lawsuits unless financial companies tore up their lending rules, just so those w/o the means could obtain loans?
Let then fail. Let them be foreclosed. Its the cost of doing business. The bailouts are simply another form of socialist welfare & in these cases, the amounts could financially destroy an entire nation for the protection of the few.
Companies who lent money based on legal threats over social issues, should not have to pay the price because Congress forced them to lean money to people who should have known better. If they did not know better, then they should have learned more about mortgages & the effects of rising & falling real estate values.
Sound mean. So is bankruptcy of an entire nation brought about by coercive lending practices few lenders would have even considered but were forced to be community organizers rabble rousing for special considerations.

Sep 18, 2008 - 7:03 pm 59. Javelin:

Kevin:
Typical Bushbot thinking, always someone else’s fault. You little talk show dweeb, the executive is always responsible. Bush should have forseen it and taken action, even O’Reilly and Ben Stein agree. But your mentally and morally defective ilk cries Bush Derangement Syndrome and blames people who have been out of power for decades.

Sep 18, 2008 - 7:05 pm 60. Javelin:

AlexinCT:
Who is talking about giving them their house, at best they might get their loans rearranged but they will still be liable. Please spare me the party line. I know you are so successful cause you are so morally and intellectually superior and clever and god forbid should anyone without your skills or wisdomget into trouble, let them suffer.

Sep 18, 2008 - 7:08 pm 61. lee:

“Bush should have forseen it and taken action, even O’Reilly and Ben Stein agree.”

How could Bush have foreseen this, when crappy lending practices was happening years before he took office?

Sep 19, 2008 - 1:16 am 62. Zbigniew Mazurak:

“Barack “Talk and Tax the Economy Down” Obama declared that there was “little doubt we’ve moved into recession” in July.”

So? He’s the last person I would ask an ecomic question. His and McCain’s claims that the US economy is “in crisis” are ridiculous.

And the truth is that the US economy is not undergoing a recession. There was a recession in Q4 of the year 2007, but since then the US economy has began to grow again.

America has the largest, most diverse, most efficient economy on Earth. Given the hurdles America has faced during the last 7 years, America’s economic record is impressive. It’s proof of how efficient free market economies are.

During the last 7 years, America has witnessed terrorist attacks, corporate scandals, oil shocks, hurricanes and whatnot. Despite all of that, her economy is still the strongest in the world.

What is the US economy like at present? Well, not only is it the world’s largest and most diverse, but also many other economic parametres are good. Unemployment and inflation are low. The public debt burden is low. GDP per capita is high ($46000). The health service is excellent. No nation enjoys a higher economic standard than the American people.

Please. Who is going to economically compete with the US? Answer: no one.

Sep 19, 2008 - 2:19 am 63. Obama on the Economy: Present « The Dude’s Blog:

[...] Very Different Economic Times in Red vs. Blue States [...]

Sep 19, 2008 - 7:57 am 64. Jeff:

What most people have not notice or fail to notice is that “Change” is coming in this election. But the “Change” is not only being promoted by Obama’s campaign since the beginning, the “Change” is now also in McCain himself, who has seemed to have made a 180 degrees turn in his own transformation. Here are the “Changes” of McCain —

1) McCain was previously against oil drilling in ANWR, Alaska; off the coast of Florida; off the coast of the Gulf of Mexico; and off the coast of California. Now he is for “drill baby drill”.
2) McCain was against Federal regulations of America’s largest financial institutions like Fannie Mae, Freddie Mac, and AIG. Now, after these financial institutions are collapsing, he is promoting Federal regulations to control them so that this crisis will not happen again. He now wants more Federal regulations of Wall Street altogether. Wouldn’t this be considered as socialism that most conservatives do not want? Also, please do not forget McCain’s past involvement in the Keating Five as an example that his future plans for Federal regulations of financial institutions will not work —

http://en.wikipedia.org/wiki/Keating_Five

3) McCain has said over and over that, “the fundamentals of our economy are strong” in reference to our economy. Now, he states that he was referring to the American workers as being the backbone of our economy? This reference is only made after Obama has contested his refusal to accept that our country is in a financial crisis. Maybe this is McCain’s way of defusing his stance of denial.
4) McCain has stated since the beginning of the Republican campaign that he will fight a good and honest campaign without resorting to dirty politics of using smear tactics. Now, most of the McCain’s campaign ads against Obama are smear campaigns that even The New York Times, The Washington Post, The LA Times, Newsweek, and various other major news agencies have declared as false information using very dirty politics. Most of the Obama’s campaign ads have been on the defense to all of these false accusations by the McCain’s campaign ads.
5) For more changes of McCain, please look at the link below —

http://www.thecarpetbaggerreport.com/flipflops

In this election, there are in fact two forms of changes. One form of “Change” is being promoted by a candidate who wants to transform this country for the better, while the other form of “Change” is being promoted by another candidate of his own transformation to capture the hearts of the American public. Which form of “Change” do we want as a country?

Sep 19, 2008 - 10:06 am 65. Justaworkistiff:

and this little piece from someone with real econmic systems experience.

last Monday night in the BBC “Economist Debates” on the economic meltdown broadcast from the heart of the City, London’s financial district. Nearly all of the CEOs, financial consultants and bankers on our over sized debate panel echoed the media coverage, treating the crisis as a technical problem, a puzzle economists had to solve. The market paradigm within which the crisis unfolded is taken for granted and solutions are sought within the paradigm.

But the problem is the paradigm of four decades of a Reagan/Thatcher privatization ideology that has insisted government can do no right and markets can do no wrong. We now have had forty years of old Republicans and New Democrats, Bill Clinton included, old Tories and new Labor, Tony Blair included, all conspiring to deregulate media, deregulate banks, deregulate the financial industry and get government out of the way of the market’s invisible hand. In their foolish assault on ‘big government’ and ‘welfare bureaucracy’ and in their political campaigns against Washington, these representatives of the democratic process have in fact undermined democracy and made war on the very spirit of the commonweal.

Government is us: the political arrangements we forge in order to be able to do together the many public things we cannot do one by one; the deliberative processes we establish so that public policy will reflect public goods rather than private preferences. The Washington against which we rail is also us, the political home of those we choose to represent us, like Senator McCain, and yes, Senator Obama.

But a seductive market ideology has talked us out of our citizenship, talked us into believing that all that is demanded from us as citizens can be achieved by us as consumers. Hence, voting has become a form of shopping, elections a version of American Idol.

Yes, there is to be sure a technical issue in the crisis: it’s called leveraging and it is a the very foundation of the banking system. Leveraging is what allows banks to put your deposits to work by reinvesting most of them and keeping only a small percent on hand for depositors wanting their money back. But for a system of leveraging to work there must be transparency, full disclosure and a reasonable limit on just how much leveraging is permitted. Normally, governments establish and enforce transparency and limits.

But not in the age of free market dogmatism, not under conditions of exuberant deregulation. At the heart of the market ideology is a demand that democratic oversight be withdrawn. The buying and selling of paper is to be left to the whims of private actors who often are as economically ignorant as those ordinary mortgage holders who get stiffed when the original variable rate mortgages get sold and then screwed again when the banks that sell this dubious paper go under and are bailed out by mortgage holders as taxpayers.

The media reports banks are being bailed out by government, but that is just another word for the taxpayers. We are consumers when it comes to buying bad credit, but citizens when it comes to paying for the costs. This is the new market form of socialism, where risk are socialized (we pay for them) but profits remain private (market pirates keep them).

What does this all mean for the crisis? It means that the way out lies not just through technical fixes or pumping public money into failing banks and insurance companies. It means reasserting our rights as citizens to regulate the market. It means insisting we will not support the new ’socialism of risk’ unless we also share in the profits (that’s another way to reduce taxes!)

In short, it means consumers must become citizens again, reclaiming their democratic right to fiscal transparency, political oversight and market regulation. It means the public sector must come back not just in the default mode when the private sector fails, but actively and constructively so that the public weal takes precedence over private interests in good times as well.

Such an arrangement has a name: democracy. The crisis will have been worth it if we finally learn this lesson.

Sep 19, 2008 - 10:41 am 66. New York Times 2003: Dems Oppose Bush Plan To Rein in Fannie and Freddie - Page 2 - US Message Board:

[...] issues, dirty politics, fear and stealing elections. If only they governed as well. Really? Pajamas Media

Sep 19, 2008 - 1:22 pm 67. always right:

But the problem is the paradigm of four decades of a Reagan/Thatcher privatization ideology that has insisted government can do no right and markets can do no wrong. We now have had forty years of old Republicans and New Democrats, Bill Clinton included, …..

This is straight from the theoretician’s book in a simplistic form.

Does the theory bear any resemblance to the real world? In the past four decades, do we have absolutely FREE MARRKET in play here, no outside (i.e. government) interventions or interference at all? IF ONLY that were the case!

Most of the malaise we see today can be directly and indirectly traced back to ‘good intentions’ of the lawmakers and our government (Like this is a surprise, they are politicians, their ‘good intentions’ is to buy more votes so they get to remain in power.)

These bozos think they can ‘create’ wealth and equalness by getting pieces and pieces of legislations on paper. And voters believed them (in fairness, more than four decades). They could not and would not learn.

Sep 20, 2008 - 7:11 am 68. Recession? Depends on Your Politics « Poppypundit:

[...] 20, 2008 · No Comments Whether we are in a recession or not depends on where you live — specifically, the political climate that dominates your state. If there is indeed a [...]

Sep 20, 2008 - 7:52 pm 69. Roger Godby:

So vote Libertarian if the position isn’t crucial or close; otherwise, vote GOP, since they’ll probably hose you the least (and hose you in some way they will, while at least mouthing “small government” and “free trade”). Which party is most indebted to ambulance-chasing trial lawyers, sinecure public teachers, ivory tower hermits, public employees, Hollywood, and job-/industry-destroying unions? The DNC.

Sep 21, 2008 - 5:06 am 70. BizzyBlog » State Unemployment Data Supporting Sunday Column:

[...] claims were made in a column written for Pajamas Media earlier in the week that went up at BizzyBlog [...]

Sep 21, 2008 - 6:39 am 71. BizzyBlog » New York Post Column (’Red State vs. Blue State Economics’) Is Up:

[...] to Pajamas Media for publishing the column that the Post noticed on Thursday, and to the Post’s Steve Lynch for selecting me, and [...]

Sep 21, 2008 - 7:15 am 72. Calanda-Technology.Com » Blog Archive » New York Post Column (’Red State vs. Blue State Economics’) Is Up:

[...] to Pajamas Media for publishing the column that the Post noticed on Thursday, and to the Post’s Steve Lynch for selecting me and editing [...]

Sep 21, 2008 - 7:54 am 73. Unemployment: Red vs. Blue « acerbic:

[...] 22, 2008 Unemployment: Red vs. Blue Posted by TeemKuntz under politics   I have seen this kind of post before. The theme: blue states have worse economies than red states. The usual culprits are [...]

Sep 22, 2008 - 8:41 am 74. Mike Kelley:

If the Democrats get even more control over Congress and win the presidency this year, there will almost no new energy production allowed in the US. Pelosi and company are totally in the tank for the envirocrits, and the result for us consumers will be catastrophic over time. The Democrat Governor of Iowa vetoed two new coal plants earlier this year, and she was supposedly on the short list for Obama’s VP. I don’t see how any country can maintain a modern economy if energy is in short supply or very expensive. The smart money will go overseas to places where the leaders are not owned by the wacko tree huggers.

Oct 5, 2008 - 8:19 pm 75. Greg Lanning:

Who first taught us that “ideology” was a bad thing and turned that word into a pejorative?
The answer is surprising : it was Napoleon Bonaparte.
Naturally, our English word “ideology” comes from the French “ideologie”.
Before Napoleon, ideology was an honourable subject, the study of ideas (”idee” in French),
As we move into the 21st century, we should not draw our political epithets from a murderous French dictator.

Oct 26, 2008 - 3:01 am

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