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anonymous

The Tea Party and Insurgency Politics - 0 views

  • The political lesson, worth pondering in these times of Tea Party rumbling, is that serious protest movements such as the Perot phenomenon or today’s Tea Party revolt never just fade away. They linger in American politics, sometimes largely unseen but sometimes quite overt, and exert a continuing tug on the course of electoral decision-making. Eventually they get absorbed into one major party or the other. In the process, they often tilt the balance of political power in the country, occasionally for substantial periods of time.
  • What it represents and portends can best be scrutinized by trying to answer three fundamental questions:
  • First, is this movement for real and is it enduring? The answer is yes.
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  • The second question is, where did this movement come from? What precisely were the impulses, angers and fears that spawned this seemingly spontaneous wave of civic energy?
  • But most Tea Party leaders emphasize three general principles.
  • The first is “fiscal responsibility,” which includes a strong aversion to huge federal deficits and the yawning national debt.
  • The second principle is “constitutionally limited government,” which implies states’ rights and the protection of individual liberties from federal intrusion.
  • the third is “free markets,” seen by Tea Party adherents as the protection of intertwined “individual and economic liberty.
  • Both the Jackson and Clay traditions have reverberated through American politics for nearly 200 years.
  • The third question centers on how the Tea Party will influence American politics in the coming years.
  • Indeed, much of the flow of American politics that angers Tea Party adherents — increased federal spending, growing deficits, Washington’s earmark culture, the looming entitlement crises — were in full force during the Bush years. That’s why Tea Party adherents are so bent on busting up the Washington establishment by first busting up the GOP.
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    "The political lesson, worth pondering in these times of Tea Party rumbling, is that serious protest movements such as the Perot phenomenon or today's Tea Party revolt never just fade away. They linger in American politics, sometimes largely unseen but sometimes quite overt, and exert a continuing tug on the course of electoral decision-making. Eventually they get absorbed into one major party or the other. In the process, they often tilt the balance of political power in the country, occasionally for substantial periods of time." By Robert W. Merry at StratFor on September 17, 2010.
anonymous

The Very Angry Tea Party - 0 views

  • The seething anger that seems to be an indigenous aspect of the Tea Party movement arises, I think, at the very place where politics and metaphysics meet, where metaphysical sentiment becomes political belief.
  • When it comes to the Tea Party’s concrete policy proposals, things get fuzzier and more contradictory: keep the government out of health care, but leave Medicare alone; balance the budget, but don’t raise taxes; let individuals take care of themselves, but leave Social Security alone; and, of course, the paradoxical demand not to support Wall Street, to let the hard-working producers of wealth get on with it without regulation and government stimulus, but also to make sure the banks can lend to small businesses and responsible homeowners in a stable but growing economy. 
  • Mark Lilla argued that the hodge-podge list of animosities Tea party supporters mention fail to cohere into a body of political grievances in the conventional sense: they lack the connecting thread of achieving political power. 
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  • What Lilla cannot account for, and what no other commentator I have read can explain, is the passionate anger of the Tea Party movement, or, the flip-side of that anger, the ease with which it succumbs to the most egregious of fear-mongering falsehoods. 
  • My hypothesis is that what all the events precipitating the Tea Party movement share is that they demonstrated, emphatically and unconditionally, the depths of the absolute dependence of us all on government action, and in so doing they undermined the deeply held fiction of individual autonomy and self-sufficiency that are intrinsic parts of Americans’ collective self-understanding. 
  • they would be politically acceptable only to the degree to which they remained invisible
  • Tea Party anger is, at bottom, metaphysical, not political: what has been undone by the economic crisis is the belief that each individual is metaphysically self-sufficient, that  one’s very standing and being as a rational agent owes nothing to other individuals or institutions. 
  • Each of these social arrangements articulate and express the value and the authority of the individual; they give to the individual a standing she would not have without them.
  • If stated in enough detail, all these institutions and practices should be seen as together manufacturing, and even inventing, the idea of a sovereign individual who becomes, through them and by virtue of them, the ultimate source of authority. 
  • is individual autonomy an irreducible metaphysical given  or a social creation?
  • It is by recognizing one another as autonomous subjects through the institutions of family, civil society and the state that we become such subjects
  • Hegel’s thesis is that all social life is structurally akin to the conditions of love and friendship; we are all bound to one another as firmly as lovers are, with the terrible reminder that the ways of love are harsh, unpredictable and changeable. 
  • because you are the source of my being, when our love goes bad I am suddenly, absolutely dependent on someone for whom I no longer count and who I no longer know how to count; I am exposed, vulnerable, needy, unanchored and without resource. 
  • This is the rage and anger I hear in the Tea Party movement; it is the sound of jilted lovers furious that the other — the anonymous blob called simply “government” — has suddenly let them down, suddenly made clear that they are dependent and limited beings, suddenly revealed them as vulnerable.
  • All the rhetoric of self-sufficiency, all the grand talk of wanting to be left alone is just the hollow insistence of the bereft lover that she can and will survive without her beloved
  • About this imaginary, Mark Lilla was right: it corresponds to no political vision, no political reality.  The great and inspiring metaphysical fantasy of independence and freedom is simply a fantasy of destruction. 
  • In truth, there is nothing that the Tea Party movement wants; terrifyingly, it wants nothing.  Lilla calls the Tea Party “Jacobins”; I would urge that they are nihilists. 
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    By J.M. Bernstein (Opinionator Blog) at NYTimes.com on June 13, 2010.
anonymous

Innocence Abroad: The Tea Party's Search for Foreign Policy - 0 views

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    "What is the Tea Party's foreign policy? It's a difficult question on two counts. There is no Tea Party foreign policy as far as I can tell, and, on inspection, there is no Tea Party. There are, of course, any number of Tea Party Coalition groups across the country. But these mix and mingle, cooperate, compete, debate, merge, and overlap with countless other groups grouped together as the "Tea Party movement" in the public mind (or the public commentator mind)." By P.J. O'Rourke at World Affairs on the Sept/Oct 2010 issue.
anonymous

Caucasian Nation - 0 views

  • But it’s futile to insist on nuances of history and law when we’re speaking the language of “offense.” The mythical heartland Sarah Palin speaks from, or for, is full of these voiceless, downtrodden plain folk who are constantly being offended, for whom there is no end to the offenses, real or imagined, perpetrated against them: the Mexican immigrant speaking his native tongue, the Muslim at his prayers, the black man drinking from a public water fountain (oh wait, that one’s not offensive anymore . . .). One of the more charming stories in Budiansky’s history of Reconstruction concerns a Southern gentleman who wanted a freed slave whipped because he had the temerity to wish him “good morning” without being spoken to first. These offended people see with such dreadful clarity things that don’t exist, and so remake reality to suit their grievances.
  • Of course, the majority of white Americans, like the majority of all other kinds of Americans, have good reason to feel aggrieved. They are the victims of bad economic and foreign policies; their state budgets are crippled by debts, their federal legislature is paralyzed, environmental catastrophe stalks their shores, oceans, and atmosphere. But when they go to the polls in November, if they go at all, a fair number of them will cast their vote on the basis of who stood up for them against imaginary Muslim hordes invading lower Manhattan to pray to their terrorist God.
  • In a late interview by turns confessional and triumphant, Lee Atwater, author of the strategy that turned the solidly Democratic, racist South into the solidly Republican, racist South, described the Southern Strategy’s metamorphosis over the years, “You start out in 1954 by saying, ‘Nigger, nigger, nigger.’ By 1968 you can’t say ‘nigger’ — that hurts you. Backfires. So you say stuff like forced busing, states’ rights and all that stuff. You’re getting so abstract now [that] you’re talking about cutting taxes, and all these things you’re talking about are totally economic things and a byproduct of them is blacks get hurt worse than whites.” Partly through Atwater, Republicans developed a kind of reverse means test, an economic version of the old “one-drop rule.” Policies that were likely to help blacks, even if they were also likely to help poor whites, because they were policies largely designed to help the poor, regardless of color, became issues to campaign against: welfare, health care, federal education funding, progressive taxation, clean air regulations, funding for public transportation, just about any “progressive policy” you can think of. Some whites would be hurt, but blacks would be hurt worse. This has proved true. African Americans as a group are still poorer than whites as a group, regardless of the achievements of this generation’s talented tenth and of the growing army of the unemployed of all colors.
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  • The ideology of states’ rights against federal enforcement, the metastasized right to bear arms, the fear of “big government” intervention — these were the pillars on which the Confederate and later segregationist South sought to erect a white plantation nation.
  • As of right now, there exists no serious strategy to combat this new bigotry. The Democratic leadership appears content to hope that once these radical Republican race-baiters take control of Congress after the midterm elections, the ordinary responsibilities and realities of power will force them to abandon the strategies they used to obtain power.
  • Instead of being “overcome,” historic American racism against nonwhite people has gone into deep cover and, with the irrefutable illogic of the unconscious, emerged as a newfangled American antiracism for the protection of white people.
  • “This guy, is, I believe, racist,” said Glenn Beck of Obama back in 2009, probably because he believed, like Breitbart, that when you accuse somebody of racism, however baselessly, the burden of proof shifts to the accused.
  • The crowds thronging to join Beck’s march on Washington — conveniently coinciding with the 47th anniversary of King’s “I had a dream” speech — showed the rest of us that Obama’s “postracial” America looks a lot like racial America.
  • In fact there has been an authentic white culture in American history, or rather a way of life concerned above all with the protection and preservation of white ethnic domination, and playing up the white victim has always been a part of it.
  • Even though we’ve mostly done away with outright racial violence, the memory of violence survives in the symbolism of  the Shirley Sherrod affair, the signs at Tea Party protests that say “the zoo has an African Lion and the White House has a Lyin’ African,” and the “open carry” demonstrations sponsored by the NRA, descendant of the Confederate gun clubs, at the town hall meetings for national health care.
  • Even so we have not yet achieved a more intriguing benchmark of progress: the election to the presidency of the descendant of an actual slave.
  • The most enduring behaviors of nations, like the hardest-to-break habits of individuals, are those we are least aware of. The new racists — that is to say, “concerned citizens” of Caucasian descent — seem only dimly conscious of past American racism, an ignorance no doubt unconsciously maintained, but more potent for that. Journalists for supposedly liberal publications like the Times and the New Republic have sought “actual racists” in the Tea Party movement and, because no one would say the N-word on the record, duly exonerated the Tea Partiers of racist intent. In exchange, Tea Party spokespeople acknowledge that the odd unreconstructed crank might turn up at one of their rallies. It’s a free country. All the reporters could find was that self-identified Tea Partiers were more likely than most Americans to pick a poll option asserting that “too much attention has been paid to problems facing Black Americans.”
  • Ostensibly, then, all the Tea Partiers want are the same contradictory things that most real Americans want: Medicare benefits, disproportionate federal spending on rural districts, and no taxes. As a T-shirt puts it, “I’ll keep my guns, money, and freedom, you can keep the ‘Change.’” But the summer’s events show that the defense of unthreatened freedoms counts for less than an apparently widespread white wish to make more out of their difficulties than other people. This is no longer a culture war, a revolt of stoics against the “culture of complaint,” but something deeper and older that precedes the identity politics movements it aims to subvert. Forty-two years after the Civil Rights Act, white people who still think of themselves predominantly as “white people” want to air their grievances with the aid of a social movement. One half of what passes for American two-party discourse calls now for another rebirth of a nation: the Caucasian States of America, a postmodern ethno-nationalist republic.
  • The Confederacy provided us with our own native opposition to classical 19th-century Liberalism, both economic and political, and it shouldn’t really be that surprising that contemporary antiliberalism with strong support in the former slave and border states borrows its language and gestures.
  • The robust case for dominating other people sounds awful to most American ears today. So the contemporary idea of ethnocracy relies instead on an opposite rhetoric of victimization. The simple-minded mantra we’re taught in grade school goes like this: blacks good because oppressed, whites bad because oppressors. So if whites suddenly became oppressed, even while remaining the majority, they would magically become good again. Many Americans are now being taught to think this way.
  • There is no dispute that both American common-law traditions of liberty of conscience and the First Amendment protect the construction of the center, regardless of its popularity. It shouldn’t be a big deal. And yet: “Ground Zero Mosque supporters: doesn’t it stab you in the heart, as it does ours throughout the heartland? Peaceful Muslims, pls refudiate,” tweeted Sarah Palin, white goddess of the victimization movement. This opening salvo was later amended, with little more grammatical success, to “Peaceful New Yorkers, pls refute the Ground Zero mosque plan if you believe catastrophic pain caused @ Twin Towers site is too raw, too real.” The idea that 9/11 somehow taints all of Islam, so that all Muslims should be honor-bound not to practice their religion within an unspecified radius of Ground Zero for fear of hurting other people’s feelings — this is like the blood libel meets Oprah.
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    "Last week, the NAACP released a detailed report tracking racist elements in the Tea Party. Looking past smoking gun links to actual card-carrying white supremacists, Marco Roth argues that the rhetoric of the Tea Party is tainted, from its very origins, with a long-running strain of "white victimization" politics, dating back to the Confederate South's refusal to accept that it had lost the Civil War." By Marco Roth at n+1 on October 25, 2010.
anonymous

Tales of the Tea Party - Readers' Comments - 0 views

  • Well, if the jury is still out on Tea Party hypocrisy, then let me make a few suggestions to those of you in the Tea Party to help you avoid being called hypocrites:1. Many Tea Party members (including some commenters here) oppose the $700 billion TARP bailouts. The Obama administration said last week that the projected total costs will come in under $50 billion, and that it could possibly make money for the government when it is fully paid back. Give the Obama administration credit for reducing the costs, and praise him if the costs reach $0 or if it pays for itself.2. After decrying the "generational theft" of deficit spending, the Tea Party seems to have no problem supporting the extension of the Bush tax cuts; even for the very wealthy. Tax cuts, were the single biggest factor adding to the deficit before the recession reduced revenues. You claim to worry about their children's futures, but they're putting their kids in debt to pay for the lifestyles of today's wealthy. Admit that at least some of the tax cuts have to go.3. If the deficit is the problem, then get serious about the defense budget. Last year defense spending costed more than social security entitlements, and more then medicare and medicaid, and far more than the stimulus or TARP. And on top of it, Americans get a very low return on their investment of tax dollars in military spending. Much of the benefit is realized directly by people in other countries who enjoy greater stability. Start supporting a downsizing of the military.4. Get off of your constitutional high horse. For a bunch of people who claim to support the Constitution, they sure were reluctant to support the First Amendment rights of Muslims who wanted to build a community center near the WTC site. Don't be so quick to anger when people are trying to exercise the freedoms that you claim to cherish so much. If you really love your freedoms, you should understand why people want to exercise theirs.5. Again, concerning the Constitution: stop picking candidates that know nothing about constitutional law. If you care so much about the Constitution, why are you listening to Sarah Palin, who could not have been more wrong when she claimed that the First Amendment protected her from criticism by the media? When running for vice president, she didn't know what the constitution said about the vice presidency. How about Christine O'Donnell, who couldn't name any recent Supreme Court cases last week? These are the people you chose to represent you and your respect for the US Constitution?6. If you want small government, then actively support same-sex marriage rights. Don't want the government telling you what to do? Then you shouldn't want the government telling you whom you can and can't marry. Small government does not regulate personal decisions about whom you spend your life with, and if you are serious about small government, then you should be out there protesting for gay marriage.7. If Congress is overstepping it's powers to regulate commerce with its healthcare mandate, then get out there and support the legalization of marijuana. Attorney General Holder recently stated that if California legalizes the sale of marijuana, then he will use federal power to prosecute marijuana users for possession of the drug. This should strike you as a gross abuse of federal power in violation of state rights. Come out against Holder's threat right now and get ready to protest if he follows through with it.8. Stop claiming that you have the Founding Fathers on your side, while assailing the educated elite. The Founders were the educated elite. They were all a part of the American Philosophical Society. Many of them were knowledgeable of physics and calculus--the cutting edge sciences of their day. Everyone knows that Benjamin Franklin was a scientist. So, stop the anti-science, anti-intellectual agenda. The Founders would never have stood for that.9. Admit it, you want another Bill Clinton. Sure, the Tea Party is nostalgic for Reagan, but he oversaw a large expansion of the deficit. Government borrowing started to decline under Bush Sr. but the deficit saw massive decline, leading to surpluses under Clinton. G. W. Bush turned those surpluses back into a gaping deficit. So, why do you vote Republican? Get over Reagan and admit that your party shouldn't have tried to impeach the most fiscally conservative president in thirty years.10. And yes, as Mr. Douthat has suggested, get serious about entitlements.
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    Some great responses to Douthat's piece about the Tea Party on October 17, 2010.
anonymous

Stratfor-founder George Friedman slams Tea Party in leaked emails from March 2010 - 0 views

  • ----- Original Message ----- From: "George Friedman" To: "Analyst List" Sent: Thursday, March 25, 2010 10:18:35 PM GMT -06:00 US/Canada Central Subject: Re: [OS] US/CT/CALENDAR- Teabagger protest at Harry Reid's house 3/27 The economics of this is far less important than the social and political implications of the response. The lack of civility on TV has now spilled over into the streets. Physical attacks on people and places you don't agree with has become acceptable. The fundamental and absolute principle of a democratic republic is that while your position may be defeated, and you can continue to argue your point, you do it without demonizing your opponents and without ever threatening harm. Whether this is a small fraction of the movement or large is unimportant to me, as is the argument about healthcare. This behavior is more frightening that the largest deficit I can imagine. We use fascist and communist casually, but he definition of each was that it did not absolutely abjure political intimidation. I have not seen anything like this since the segregationists in the south and the anti-war movement in the 1960s.
  • Both triggered massive political counteractions fortunately, and the segregationists and anti-war movement was politically crushed. I certainly hope that the Tea Party has the same fate. You are both supposed to be students of geopolitics. Approach this geopolitically. You are living in a country where disagreements degenerate into massively uncivil behavior. Yet you are both still arguing the issue. That issue is trivial compared to the way the losers are responding. I find the language they use offensive in a civilized polity, and the intimidation tactics of some of them is monstrous. You should both be far more worried about the political dimension than the economic. We will survive the economic. We can't the political. And as a practical matter, this is the best friend the Democrats have. I'm pretty hard right and I'm offended. Imagine how people more moderate than me look at this. These people are guaranteeing Obama's re-election.
  • If this is not educational, I don't know what is!
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    "Stratfor-founder George Friedman slams Tea Party in leaked emails from March 2010: "I'm pretty hard right and I'm offended", "You are living in a country where disagreements degenerate into massively uncivil behavior", "Physical attacks on people and places you don't agree with has become acceptable" - Friedman compares Tea Party to "Hitler and Lenin", other analysts also make comparisons to Nazi-movement"
anonymous

Tea Party Demographics: White, Republican, Older Male with Money - 0 views

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    "Several polls are now out, assessing the demographics of the Tea Party Movement that largely agree the majority of its members are Republican, largely white, above the mean in age and income and voted for John McCain. So do Tea Party people reflect the average American as they represent themselves? Not usually if you are a middle-aged woman of Hispanic background, an African-American male or a union member in New England just scraping by, according to the polls." By Carol Forsloff at Digital Journal on March 30, 2010.
anonymous

Tales of the Tea Party - 0 views

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    "Ekins, a former CATO Institute intern, was examining the liberal conceit that Tea Party marches are rife with racism and conspiracy theorizing. Last week, The Washington Post reported on her findings: just 5 percent of the 250 signs referenced Barack Obama's race or religion, and 1 percent brought up his birth certificate. The majority focused on bailouts, deficits and spending - exactly the issues the Tea Partiers claim inspired their movement in the first place. " A provocative argument *for* Tea Partiers. While it lacks in specifics, it doesn't disappoint, and manages to address the movement without treating it like a cartoon. By Ross Douthat at The New York Times on October 17, 2010.
anonymous

The new party of Reagan - 0 views

  • After he switched to the Republican Party in 1962, Ronald Reagan famously quipped: “I didn’t leave the Democratic Party. The party left me.”
  • At Tuesday morning’s meeting of the House Democrats, caucus chairman John Larson rallied his colleagues for the day’s debt-limit debate by playing an audio recording of the 40th president.“Congress consistently brings the government to the edge of default before facing its responsibility,” Reagan says in the clip. “This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations.”
  • Tea Party Republicans say they would sooner default on the national debt than raise taxes; Reagan agreed to raise taxes 11 times.
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  • Reagan in 1988 signed a major expansion of Medicare.
  • Republicans have continued their ritual praise of Reagan during the debt-limit fight. Rep. Trent Franks (Ariz.) claimed that the budget caps would allow America to be “that great city on a hill that Ronald Reagan spoke of.”
  • Most recently, Rep. Duncan Hunter Jr. (Calif.) called Reagan a “moderate former liberal . . . who would never be elected today in my opinion.”
  • This spring, Mike Huckabee judged that “Ronald Reagan would have a very difficult, if not impossible time being nominated in this atmosphere,” pointing out that Reagan “raises taxes as governor, he made deals with Democrats, he compromised on things in order to move the ball down the field.”
    • anonymous
       
      Holy shit. You mean he *governed*?
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    "Tea Party Republicans call a vote to raise the debt ceiling a threat to their very existence; Reagan presided over 18 increases in the debt ceiling during his presidency." Reagan was a much more complex thinker than most of us realize. I do not agree with all of his policies, but that hardly makes him an outlier president (personally). More importantly, though, he defies the assumptions that partisans have of him. It makes me want to revisit a few other Reagan bookmarks lodged in Diigo (which I scratched together over the past few years).
anonymous

The Tea Party And Demographics - 0 views

  • I see the rise of religious fundamentalism and the emergence of purely symbolic, policy-free movements to "take our country back" as partly psychological expressions of loss in the face of modernity's complexity and diversity. And I think a core divide within conservatism today is between those conservatives who have an Oakeshottian/Burkean view of the necessity and adventure of social change and those who have a Thomist/Straussian view of timeless, eternal truths and cultures that must be defended in every single respect against their enemies. 
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    At The Daily Dish, by Andrew Sullivan on April 29, 2010. The role of demographics in the tea party along with a look at how two opposing views of conservatism could play out.
anonymous

Florida Tea Party hates manatees, declares them 'dangerous' - 0 views

  • Although tea partier Mattos said she brings her grandchildren to see the manatees, she doesn’t see a point in the Save the Manatee Club. “If some of these environmental movements had been around in the days of the dinosaurs, we’d be living in Jurassic Park now,” she said. So, one is a fat, dull-witted, ponderous herd of creatures, and the other is the manatees. Got it.
    • anonymous
       
      This quote is the single reason I had to share this with the bookmark group. What ASTOUNDING idiocy.
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    And who can blame them? Look at this fearsome beast, floating Zeppelin-like in this lagoon, ready to slowly swim toward you and possibly nuzzle your face. "Help!" you gasp, and you crawl back into the boat, terrified. "I think he licked me!"
anonymous

Global Economic Downturn: A Crisis of Political Economy - 0 views

  • For classical economists, it was impossible to understand politics without economics or economics without politics.
  • The use of the term “economy” by itself did not begin until the late 19th century.
  • For classical economists, the political and economic systems were intertwined, each dependent on the other for its existence.
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  • The current economic crisis is best understood as a crisis of political economy.
  • Moreover, it has to be understood as a global crisis enveloping the United States, Europe and China that has different details but one overriding theme: the relationship between the political order and economic life.
  • the origin of the current financial crisis was the subprime mortgage meltdown in the United States.
  • To be more precise, it originated in a financial system generating paper assets whose value depended on the price of housing.
  • From the standpoint of economics, this was essentially a financial crisis: who made or lost money and how much.
  • From the standpoint of political economy it raised a different question: the legitimacy of the financial elite.
  • Think of a national system as a series of subsystems — political, economic, military and so on.
  • Then think of the economic system as being divisible into subsystems — various corporate verticals with their own elites, with one of the verticals being the financial system.
  • A sense emerged that the financial elite was either stupid or dishonest or both.
  • Fair or not, this perception created a massive political crisis.
  • There was a crisis of confidence in the financial system and a crisis of confidence in the political system. The U.S. government’s actions in September 2008 were designed first to deal with the failures of the financial system. Many expected this would be followed by dealing with the failures of the financial elite, but this is perceived not to have happened.
  • This generated the second crisis — the crisis of the political elite.
  • The Tea Party movement emerged in part as critics of the political elite, focusing on the measures taken to stabilize the system and arguing that it had created a new financial crisis, this time in excessive sovereign debt.
  • Its argument was that the political elite used the financial crisis to dramatically increase the power of the state (health care reform was the poster child for this) while mismanaging the financial system through excessive sovereign debt.
  • The sovereign debt question also created both a financial crisis and then a political crisis in Europe.
  • What had been a minority view was strengthened by the recession.
  • The European crisis paralleled the American crisis in that financial institutions were bailed out. But the deeper crisis was that Europe did not act as a single unit to deal with all European banks
  • There are two narratives to the story.
  • One is the German version, which has become the common explanation. It holds that Greece wound up in a sovereign debt crisis because of the irresponsibility of the Greek government
  • The Greek narrative, which is less noted, was that the Germans rigged the European Union in their favor. Germany is the world’s third-largest exporter, after China and the United States (and closing rapidly on the No. 2 spot). By forming a free trade zone, the Germans created captive markets for their goods.
  • Moreover, the regulations generated by Brussels so enhanced the German position that Greece was helpless.
  • Which narrative is true is not the point.
  • The point is that Europe is facing two political crises generated by economics. One crisis is similar to the American one, which is the belief that Europe’s political elite protected the financial elite. The other is a distinctly European one, a regional crisis in which parts of Europe have come to distrust each other rather vocally. This could become an existential crisis for the European Union.
  • The American and European crises struck hard at China, which, as the world’s largest export economy, is a hostage to external demand, particularly from the United States and Europe.
  • The Chinese government had two responses.
  • The first was to keep factories going by encouraging price reductions to the point where profit margins on exports evaporated.
  • The second was to provide unprecedented amounts of credit to enterprises facing default on debts in order to keep them in business.
  • This led to a second crisis, where workers faced the contraction of already small incomes.
  • The response was to increase incomes, which in turn increased the cost of goods exported once again, making China’s wage rates less competitive, for example, than Mexico’s.
  • China had previously encouraged entrepreneurs. This was easy when Europe and the United States were booming. Now, the rational move by entrepreneurs was to go offshore or lay off workers, or both.
  • In the United States, the first impulse was to regulate the financial sector, stimulate the economy and increase control over sectors of the economy.
  • In Europe, where there were already substantial controls over the economy, the political elite started to parse how those controls would work and who would benefit more.
  • In China, where the political elite always retained implicit power over the economy, that power was increased.
  • In all three cases, the first impulse was to use political controls.
  • In the United States, the Tea Party was simply the most active and effective manifestation of that resistance.
  • In Europe, the resistance came from anti-Europeanists
  • It also came from political elites of countries like Ireland who were confronting the political elites of other countries.
  • In China, the resistance has come from those being hurt by inflation
  • Russia went through this crisis years ago and had already tilted toward the political elite’s control over the economy.
  • Brazil and India have not experienced the extremes of China, but then they haven’t had the extreme growth rates of China.
  • But when the United States, Europe and China go into a crisis of this sort, it can reasonably be said that the center of gravity of the world’s economy and most of its military power is in crisis. It is not a trivial moment.
  • Crisis does not mean collapse. The United States has substantial political legitimacy to draw on.
  • Europe has less but its constituent nations are strong.
  • China’s Communist Party is a formidable entity but it is no longer dealing with a financial crisis.
  • It is vital to understand that this is not an ideological challenge.
  • Left-wingers opposing globalization and right-wingers opposing immigration are engaged in the same process — challenging the legitimacy of the elites.
    • anonymous
       
      This is why so much of American life seems like that proverbial puppet show. Politicians, at their basest, have a vested interest in portraying this as a problem between us-vs-them. It reflects heat.
  • The real problem is that, while the challenge to the elites goes on, the profound differences in the challengers make an alternative political elite difficult to imagine.
  • This, then, is the third crisis that can emerge: that the elites become delegitimized and all that there is to replace them is a deeply divided and hostile force, united in hostility to the elites but without any coherent ideology of its own.
  • In the United States this would lead to paralysis. In Europe it would lead to a devolution to the nation-state. In China it would lead to regional fragmentation and conflict.
  • These are all extreme outcomes and there are many arrestors.
  • But we cannot understand what is going on without understanding two things.
  • The first is that the political economic crisis, if not global, is at least widespread, and uprisings elsewhere have their own roots but are linked in some ways to this crisis.
  • The second is that the crisis is an economic problem that has triggered a political problem, which in turn is making the economic problem worse.
  • The followers of Adam Smith may believe in an autonomous economic sphere disengaged from politics, but Adam Smith was far more subtle. That’s why he called his greatest book the Wealth of Nations. It was about wealth, but it was also about nations. It was a work of political economy that teaches us a great deal about the moment we are in.
  •  
    Classical political economists like Adam Smith or David Ricardo never used the term "economy" by itself. They always used the term "political economy." For classical economists, it was impossible to understand politics without economics or economics without politics. The two fields are certainly different but they are also intimately linked.
anonymous

Rand Old Party - 0 views

  • Maddow spent about 20 minutes last night quizzing Paul about his views on the Civil Rights Act of 1964, and he and the Republican Party have spent the last 24 hours cleaning up the mess.
  • He's added to his newsworthiness by claiming his campaign is at the vanguard of the Tea Party movement. That gives him a higher profile still.
  • It also invites the Democratic Party to try to make him the symbol of the entire GOP and means the Republican establishment may have to answer for the things he says.
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  • But Byrd and current Democrats don't hold those views now. For his part, Paul argues that a 1964 law would not be relevant to issues he'd face as a senator. But that's not exactly right. The questions about his views on the Civil Rights Act grow out of his present-day views about limits on government intervention. That's always an issue in Washington, especially right now, as the Senate debates a bill to regulate financial institutions. At its core, it involves the question of just how far government can go to regulate private enterprise.
  • Democrats need African-American turnout to be high this election. Getting into a debate about civil rights would help that. But they'll also try to keep Republicans responding to Paul's other non-establishment views—such as the need to abolish much of the federal government, including the Federal Reserve and Social Security Administration.
  • Tea Party activists don't like Washington. If you're a Washington politician and you want to stay alive, you need to look like you're on their team. Hence: Embrace Rand Paul.
  •  
    Tagline: "Why Democrats can't wait to use Rand Paul against the GOP." By John Dickerson at Slate on May 20, 2010.
anonymous

The Debt Ceiling Deal: The Case for Caving (Part 3) - 0 views

  • The Tea Party, in this sense, has succeeded by adopting a rational frustration strategy.
  • You can find fault with the Tea Party’s prescription for balancing the budget—most economists do—but if they hadn’t come to Washington last year, Congress would have waited for a real bond crisis, five or 10 years from now, to create its super committee.
  • We will know, at the close of the next round of negotiations, which game the Tea Party has been playing: Balance the Budget or Kill the King.
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  • I appreciate pquincy’s thoughtful comments. With regard to the reference to divorce, it’s also worth noting that – regardless of whether or not there are children involved – almost all divorce cases (along with almost all other civil cases) are resolved through a bargained solution (i.e., a settlement) rather than a trial. But in the vast majority of cases the bargained solution is not achieved until the parties arrive at a critical deadline such as the eve of trial. This is because, prior to the deadline and as suggested by Brams, “each player has an incentive to dissemble” in pursuit of a better outcome for itself. Since each player intuitively understands this, neither views the other player’s assertions about their “bottom line” to be credible, and neither can convince the other of the genuineness of its own position prior to the deadline.
  • Pquincy ‘s suggestion that this problem should eventually become less acute in a repeated game appears to be correct. But in the game of politics, it seems that (as in litigation), a player can be expected to pretend – in the pursuit of self-interest and for as long as it can – that it is less interested in arriving at a bargained solution than it is in pursuing some sort of abstract principle (such as what it would characterize as “justice” or “the public good”).
  • In contrast to some of the other people that have posted comments in response to this article, I don’t think the outcome that was ultimately arrived at in the debt ceiling negotiations can be fairly attributed to Obama’s having played the game poorly. Rather, I think the outcome was attributable to the fact that it was obvious from the outset that Obama’s objective (regardless of whether one wishes to characterize that objective as “preserving the health and safety of our most vulnerable citizens" or “holding on for a few more years to the remnants of a bloated welfare state”) would unquestionably be placed further out of reach if he were to walk away from whatever deal the other side was ultimately willing to grant as of the deadline. He could not credibly pretend otherwise.
  • Although this article muddles a few basic concepts, it serves to illustrate that game theory offers a relatively straightforward explanation for much of the conflict that exists in the world, certainly a much better explanation than is routinely put forth by partisans and commentators. Brams is spot-on. And it's a cop-out to claim that game theory assumes that people are hyper-rational, or that it does not apply when someone is seeking an unreasonable goal. Even if your adversary's goal is, at least in your view, unreasonable or irrational, game theory allows you to understand how you and your adversary can be expected to behave in the pursuit of your respective objectives.
  •  
    Part 3 of the piece.
anonymous

Tea Partiers' concerns are virtually identical to those of Republicans, poll shows - 0 views

  • Those arguing that the Tea Partiers aren't really anything new tend to point out that the vast majority of them are Republicans. But by itself, that isn't really surprising or conclusive. This new chart from Gallup, on the other hand, documents that the political concerns and priorities of Tea Party supporters are virtually identical to those of Republicans:
  • For some time now, the Post's E.J. Dionne has been valiantly making the case that the Tea Partiers, rather than representing some new political phenomenon, are essentially just right-wing Republicans. The only new thing about them, Dionne suggests, is the ham-handed revolutionary garb and the signs of Obama as the Joker.
  •  
    Really? By Greg Sargent at The Plum Line on July 6, 2010
anonymous

Can Eric Cantor Redeem the Republican Party and Himself? - 0 views

  • On the second day, after a 7 A.M. choice of Catholic Mass or Bible study, the political analyst Charlie Cook gave a sober presentation about current demographic trends, demonstrating that the Party was doomed unless it started winning over Asian-Americans, Hispanics, and younger voters. He also noted that forty per cent of the electorate is moderate—and Republicans lost that constituency by fifteen points in 2012. Thanks to congressional redistricting, Republicans were able to hold on to the House of Representatives, and Cook said that the Party could probably keep it for the foreseeable future, but he warned that the prospects of winning back the Senate, and the White House, would require dramatic change. There are only twenty Republican women in the House, and Kellyanne Conway, a G.O.P. pollster, gave the overwhelmingly white male audience some advice: stop talking about rape.
  • Cantor is the House Majority Leader, which means that he is responsible for the mundane business of managing the schedule, the House floor, and committees, where legislation is generally written. He has used his position to transform himself into the Party’s chief political strategist.
  • “What Eric is really focussed on is that we need to do a better job of broadening our appeal and showing that we have real ideas and solutions that make people’s lives better,” Ryan said. “Eric is the guy who studies the big vision and is doing the step-by-step, daily management of the process to get us there. That is a huge job.”
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  • Cantor was one of the most influential political forces in Obama’s first term. In June of 2011, the President and the Speaker began working toward a Grand Bargain of major tax increases and spending cuts to address the government’s long-term budget deficits. Until late June, Boehner had managed to keep these talks secret from Cantor. On July 21st, Boehner paused in his discussions with Obama to talk to Cantor and outline the proposed deal. As Obama waited by the phone for a response from the Speaker, Cantor struck. Cantor told me that it was a “fair assessment” that he talked Boehner out of accepting Obama’s deal. He said he told Boehner that it would be better, instead, to take the issues of taxes and spending to the voters and “have it out” with the Democrats in the election.
  • Why give Obama an enormous political victory, and potentially help him win reëlection, when they might be able to negotiate a more favorable deal with a new Republican President? Boehner told Obama there was no deal. Instead of a Grand Bargain, Cantor and the House Republicans made a grand bet.
  • The bet failed spectacularly. Just as Cantor had urged, Obama and Romney spent much of the campaign debating tax and spending policies that the House Republicans had foisted on the Romney-Ryan ticket. What’s more, by scuttling the 2011 Grand Bargain negotiations, Cantor, more than any other politician, helped create the series of fiscal crises that have gripped Washington since Election Day. The failure of the Grand Bargain led to a byzantine deal: if the two parties could not agree on a new deficit plan, then a combination of tax increases and spending cuts—cuts known, in budget jargon, as a “sequester”—would automatically kick in on New Year’s Day.
  • Since the 2012 elections, the Republicans have been divided between those who believe their policies are the problem and those who believe they just need better marketing—between those who believe they need to make better pizza and those who think they just need a more attractive box. Cantor, who is known among his colleagues as someone with strategic intelligence and a knack for political positioning, argues that it’s the box.
  • As he gamed out G.O.P. strategy for the budgetary showdowns with Obama in January and February—including this week’s clash over the sequester—Cantor was happy to make himself available for several long interviews. He persistently struck a diplomatic note and mentioned again and again how much he looked forward to working with Obama, a position that he said he’s been articulating for a long time.
  • There are several ways to think of the divide in the Republican conference.
  • One is regional. The House has two hundred and thirty-two Republican members; nearly half of them—a hundred and ten—are from the South.
  • The rest are scattered across the Midwest (fifty-eight), the mid-Atlantic (twenty-five), the mountain West (eighteen), and the Pacific (twenty-one). There are no House Republicans from New England.
  • Tom Price, an orthopedic surgeon from Georgia, who holds Newt Gingrich’s old congressional seat and is seen as a leader of the most conservative House Republicans, said that, during a recent debate over taxes, “we talked past each other oftentimes as much as Republicans and Democrats talk past each other.” He explained how surprised he was when one of his colleagues from a Northern state told him that he favored a tax increase on millionaires. “It hit me that what he was hearing when he’s going home to a Republican district in a blue state is completely different than what I’m hearing when I go home to a Republican district in a red state,” he said. “My folks are livid about this stuff. His folks clearly weren’t. And so we weren’t even starting from the same premise.”
  • The other divide in the House is generational.
  • If Democrats vote as a bloc, which they often do, it takes only sixteen dissenting Republicans for the leadership to lose a vote. There is a rump group of some forty or fifty restless Republicans. At its core are two dozen younger members, most of whom have been elected since 2010 and have what generously might be called a dismissive attitude toward their leaders, whom they see as holdovers from the big-spending era of George W. Bush.
  • Tom Cole, of Oklahoma, who is sixty-three and has served for a decade in the House, recently emerged as the leader of a large faction of House Republicans who believe that the Tea Party-inspired congressmen are dooming the Party.
  • Cole is no fan of Obama. “The President is so self-righteous and so smug,” he told me. But Cole is one of the few House Republicans who have worked closely with the White House. On one of his walls, which is decorated with Native American artifacts, were framed copies of two laws that Obama signed regarding tribal issues. “He’s the best President in modern American history on Native American issues,” Cole said.
  •  
    "Two months earlier, Republicans had lost the Presidential election and eight seats in the House. They were immediately plunged into a messy budget fight with a newly emboldened President, which ended with an income-tax increase, the first in more than twenty years. A poll in January deemed Congress less popular than cockroaches, head lice, and colonoscopies (although it did beat out the Kardashians, North Korea, and the Ebola virus). It was time to regroup."
anonymous

Post-Tea-Party Nation - 0 views

  • while the Bush administration took wise and bold steps to correct the disaster, the unpopularity of its Troubled Asset Relief Program bequeathed the Obama administration a political disaster alongside the economic disaster.
  • If Republicans are to act effectively and responsibly, we need to learn more positive and productive lessons from the crisis.
  • Lesson 1: The danger of closed information systems.
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  • Too often, conservatives dupe themselves. They wrap themselves in closed information systems based upon pretend information. In this closed information system, banks can collapse without injuring the rest of the economy, tax cuts always pay for themselves and Congressional earmarks cause the federal budget deficit. Even the market collapse has not shaken some conservatives out of their closed information system. It enfolded them more closely within it. This is how to understand the Glenn Beck phenomenon.
  • Meanwhile, Republican officeholders who want to explain why they acted to prevent the collapse of the U.S. banking system can get no hearing from voters seized with certainty that a bank collapse would have done no harm to ordinary people.
  • Lesson 2: “The market” (the whole free-market system) must be distinguished from “the markets” (the trading markets for financial assets).
  • the intellectual right accords a deference to the wants and wishes of the financial industry that is seldom accorded to agriculture, manufacturing, transport or retailing.
  • But it’s not always true that what’s good for Goldman Sachs is good for the economy, or vice versa. Nor is what “the markets” want the same as what free-market economics require.
  • Lesson 3: The economy is more important than the budget.
  • During the recession of 1981-82, Democratic politicians demanded that a Republican president set a balanced budget as his top priority. Ronald Reagan disregarded this advice. He held firm to his tax cuts: once the economy returned to prosperity, there would be time then to deal with the deficit. Today, the positions are reversed.
  • eading voices in the Republican Party have convinced themselves that the country is on the verge of hyperinflation — a Weimar moment, says Glenn Beck. But if fiscal stimulus leads to socialism, and quantitative easing leads to Nazism, what on earth are we supposed to do? Cut the budget? But we won’t do that either! On Sean Hannity’s radio show, the Republican House leader John Boehner announced just before the election that one of his first priorities would be the repeal of the Obama Medicare cuts.
  • Lesson 4: Even from a conservative point of view, the welfare state is not all bad.
  • Social Security, unemployment insurance and other benefits were designed as anti-Depression defenses, “automatic stabilizers” as economists called them.
  • Those who denounce unemployment insurance as an invitation to idleness in an economy where there are at least five job seekers for every available job are not just hardening their hearts against distress. They are rejecting the teachings of Milton Friedman, who emphasized the value of automatic stabilizers fully as much as John Maynard Keynes ever did.
  • Lesson 5: Listen to the people — but beware of populism.
  • Non-Tea Party Americans may marvel that any group can think of itself as egalitarian when its main political goals are to cut off government assistance to the poorest and reduce taxes for the richest.
  • But American populism has almost always concentrated its anger against the educated rather than the wealthy. So much so that you might describe contemporary American politics as a class struggle between those with more education than money against those with more money than education
  • The U.S. political system is not a parliamentary system. Power is usually divided. The system is sustained by habits of cooperation, accepted limits on the use of power, implicit restraints on the use of rhetoric.
  •  
    "Republicans lost the presidency in 2008 in large part because of the worst economic crisis since World War II. Republicans have now regained the House of Representatives for the same reason. In the interval, Republicans ferociously attacked the Obama administration's economic remedies, and there certainly was a lot to attack. But the impulse to attack, it must be recognized, was based on more than ideology; it also served important psychological imperatives." By David Frum at The New York Times Idea Lab on November 12, 2010.
anonymous

The Liberal Narrative is Broken, and Only Populism Can Fix It - 0 views

  • It is time to go populist.
  • A major reason for the limited support liberals gain (even within the Democratic Party) is a basic misunderstanding of the way democratic politics work.
  • Liberals console themselves, when they learn that for every American voter who identities as a liberal there are two conservatives, by saying, Ah, you don't get it; studies show that the majority only subscribe to conservative philosophies but they are 'operational' liberals.
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  • This lovely thought does not have a leg to stand on, because people cannot vote for these programs.
  • Instead, they must cast one vote that covers all the various programs and issues -- domestic and foreign -- before them. In doing so, they do not build some kind of index where they award five points for promoting Social Security, four for Medicare, three for parks, minus two for farm subsidies, and so on.
  • Rather, voters fall back on political philosophy as a shortcut to reach their summary choice -- the only one they have.
  • And when it comes to general philosophical leanings, the overwhelming majority of the population lean conservative, as these graphs show.
  • On the philosophical level, the liberal approach does not play for many because it is too abstruse.
  • When CNN asked a group of Democratic voters to recite the Republican message, they did so crisply, on the spot. When they same group was asked to recite the Democrats' message -- they hemmed and hawed.
  • Thus, President Obama stated in the 2013 State of the Union, "It's not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth."
  • Previously he told Americans, "I believe government should be lean; government should be efficient. I believe government should leave people free to make the choices they think are best for themselves and their families, so long as those choices don't hurt others."
  • He followed in the footsteps of the popular Bill Clinton, who made his mark by declaring that the age of big government was over and ending welfare as we knew it. Both cases reflect the pressure on liberals to kiss the we-don't-favor-big-government ring before they can hope that the majority of Americans will give their message a chance.
    • anonymous
       
      See also: Clinton & Blair's "Third Way"
  • More important, many government activities have become indefensible.Reports are published daily showing very large parts of the government are no longer serving the people and that they have been captured by special interests.
  • One reads on Monday that Congress voted 394 to 1 to extend a subsidy program started in 1925 to ensure there would be enough helium for zeppelins, but now serves only a few private interests.
  • On Tuesday, that casino and private prison corporations who declare themselves real-estate investment trusts (REITs) although they have nothing to do with the real-estate business have gained IRS approval not to pay taxes on their profits.
  • On Wednesday, that a hospital chain requires its physicians to hospitalize 50 percent of the seniors who set foot into its ERs and automatically orders a battery of tests for them whether they need it or not, all charged to Medicare.
  • On Thursday, that when 19 of the largest Wall Street firms violated anti-fraud laws, rather than face criminal prosecution, they were made to promise not to break the law in the future. When they broke it anyway, in 51 different cases, no charges were filed and the offenders were simply made to repeat their promise to behave.
  • And on Friday one is reminded that not one of the fine people who brought us the finical crisis that lost millions their homes, jobs, and life savings have been jailed, including those who hired people to systematically commit massive fraud. And that that the banks we bailed out are still too big to fail, while their executives got big bonuses and are carry on brewing the next financial bubble.
  • On it goes. Moreover, one must assume that for every government capture by special interests the press reveals, there are quite a few others not aired.
  • No wonder many found that the Tea Party spoke to their anger. True, the movement also attracted some people who hold racial prejudices and oppose gay marriage.
  • But it is a serious mistake to hold that this is the main attraction, or ignore the Tea Party's key message: namely, that the government is not working for us, is not responsive to our needs, is not hearing our voices.
    • anonymous
       
      Salience.
  • Instead of dismissing Tea Partiers as a bunch of redneck hicks, liberals should tell them they are half right -- the government all too often is not serving the people -- but have the wrong address for their very justified anger.
  • It should be directed at the special interests
  • Readers may wonder why, if it is true that large segments of the public are open to populist appeals, did Occupy Wall Street fare so poorly?
  • First, because it had no clear narrative and was mainly an expression of a very diffuse sentiment; second, because it mixed populist with liberal messages; third, because it was unclear who the bad guys are -- Wall Street? The bankers? The one percent? The System?
  • A populist narrative must clearly focus on special interests, even admitting that they may include some with liberal feathers. And it must call for liberating the government from special interests so that it might once again serve the people. This is a thesis that could unite liberals with many others who have many very sound reasons to be furious.
  • The next step, a major first step to return the government to one for the people, by the people, is actually a relative easy one to outline: rolling back the negative impact of the Supreme Court's Citizens United decision.
  • However, few will be ready to support major limitations on the private monies gushing into elections until they have come to see the source of our malaise. It is as simple -- the message ought to be simple -- as this: The culprit is not the government but the unfettering of the special interests who all too often have captured its reins.
  •  
    "The left dare not answer conservatives by simply saying government is good. Instead, it must make special interests a rallying cry."
anonymous

Political Silence is Golden - 0 views

  • What are these candidates hiding from? The Politico story subscribes to the sports metaphor, explaining that the candidates are "running out the clock." If they say nothing, they won't get caught saying anything stupid, the theory goes.
  • But when politicians beat this sort of a retreat, they're not signaling that they fear the questions but that they fear the answers.
  • But filter-free media are self-limiting. To begin with, anything that Sarah Palin tweets goes out unfiltered. That's all well and good, but within seconds, the uber-media will suck it up, interpret it, fact-check it, and spit it out, making a mockery of her unfilteredness. Second, because the nonpress media speak primarily to supporters, they simply preach to the converted. To win, candidates must speak to more than the congregation, which requires conventional media exposure. Third, appearing on a friendly soundstage comes at a cost. A Tea Partier speaking on Fox News is just as prone to committing a campaign-debilitating gaffe as one taking a pummeling from aggressive reporters.
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  • Politicians and office-holders have no "duty" to speak to reporters, a truth that more reporters should understand. The press is not a Fourth Estate, a co-equal of the three branches of government, and it is due no lordly entitlements. Whenever candidates brush journalists off, the press should merely note the pols' taciturnity and maybe give thanks. In my experience, it's better to be snubbed than to be lied to.
  •  
    "Earlier this month, Politico compiled a list of candidates who had gone AWOL, taken vows of semi-silence, or were otherwise dodging unwanted exposure to the press and the public. Many of them are Republicans of the Tea Party strain and include Colorado's Ken Buck, Delaware's Christine O'Donnell, Kentucky's Rand Paul, Wisconsin's Ron Johnson, and Nevada's Sharron Angle. Politico also named two exceedingly press-shy and public-avoiding Democratic office-seekers-Paul Kanjorski of Pennsylvania and Harry Reid of Nevada." By Jack Shafer at Slate on October 18, 2010.
anonymous

A Lost Generation - 0 views

  • This economic downturn structurally resembles the depressions of the 1890s and the 1930s rather than the cyclical recessions that have recurred since World War II. The American people, mired in debt, with one in six lacking full-time employment, are not spending; and businesses, uncertain of demand for their products, are not investing no matter how low interest rates fall. With the Fed virtually powerless, the only way to stimulate private demand and investment is through public spending. Obama tried to do this with his initial stimulus program, but it was watered down by tax cuts, and undermined by decreases in state spending. By this summer, its effect had dissipated.
  • Many voters have concluded that Obama’s stimulus program actually contributed to the rise in unemployment and that cutting public spending will speed a recovery. It’s complete nonsense, as the experience of the United States in 1937 or of Japan in the 1990s demonstrated, but it will guide Republican thinking in Congress, and prevent Obama and the Democrats from passing a new stimulus program.
  • as the Obama administration recognized, much of the new demand will focus on the development of renewable energy and green technology. As the Chinese, Japanese, and Europeans understand, these kinds of industries require government coordination and subsidies. But the new generation of Republicans rejects this kind of industrial policy. They even oppose Obama’s obviously successful auto bailout.
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  • Obama has to share some of the blame. Structural crises like the Civil War or the two Great Depressions present presidents with formidable challenges, but also great opportunities. If they fail, they discredit themselves and their party, as Hoover did after 1929; but if they succeed, as McKinley and Theodore Roosevelt did after 1896 or Franklin Roosevelt did after 1932, they not only help the country, but also create enduring majorities for their party.
  • According to exit polls, 53 percent of voters in House races had an unfavorable view of the Republican Party and only 41 percent had a favorable view. I found this myself in interviewing suburban Philadelphia voters last weekend. Even those who said they were Republicans had grave doubts about what the party stood for and regarded the Tea Partiers as “wackos.”
  • In 2001, Karl Rove believed that George W. Bush had created a new McKinley majority that would endure for decades; and when Obama was elected, many Democrats, including me, thought that he had a chance to create a Roosevelt-like Democratic majority. But instead, like Japan, we’ve had a succession of false dawns, or what Walter Dean Burnham once called an “unstable equilibrium.”
  •  
    "Republicans might say it's the re-emergence of a conservative Republican majority, but that's not really what happened. What this election suggests to me is that the United States may have finally lost its ability to adapt politically to the systemic crises that it has periodically faced. The U.S emerged from the Civil War, the depression of the 1890s, World War I, and the Great Depression and World War II stronger than ever-with a more buoyant economy and greater international standing. A large part of the reason was the political system's ability to provide the leadership the country needed. But what this election suggests to me is that this may no longer be the case." By John B. Ludis at The New Republic on November 3, 2010.
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