On the Contrary

I am going to start focusing on the economy, especially since the Conservatives have started beating the drum that the New Deal failed (see Republican’s Talking Points:  The New Deal Failed).  It is such a lie, and will further weaken our country if they succeed.  Our biggest problem is that most of the population doesn’t read so their knowledge and understanding of where we have been is minimal, probably fating us to repeat the failures of history.  But there were a couple of items in the Sunday talk shows that need some clarity:

• On Meet the Press David Gregory is still no Tim Russert.  David’s biggest flaw is that he is still a creature of the conventional wisdom and has a hard time really challenging respected pundits of that conventional wisdom.  In particular, Paul Gigot from the Wall Street Journal was arguing that the Federal Reserve had pushed $2 trillion into the system and that this will have the desired effect down the road, no matter what Congress does.  What he is really arguing is that there is no need for a New Deal and that we should focus on the tax cuts, “I think a, a tax cut, a big corporate rate tax cut, for example, or an across the board tax cut would be a lot more stimulative than this public spending, which has to come from somewhere.”  I wonder where he thinks the cash for the tax cut is coming from? I have several thoughts here:  First our infrastructure and its ability to support a vibrant economy in the future is degrading.  So what is his plan for investment in these things?  I’ll give you a hint; he doesn’t have one.  Second, isn’t this tax cuts for the rich again?  How does this help considering the tax cuts they got over the last eight years?  What about the GAO study that shows that two-thirds of businesses don’t pay taxes?  Finally, looking at the Japanese experience and other stagflations, monetary policy never cured the problem without the extra help of massive spending.  In other words private spending is not enough to get the economy going.  Why doesn’t anyone challenge these “pundits” of yesterday’s conservative economic ideology that is all based upon flow down economics, with these facts?  Like I said, David Gregory is no Tim Russert.
• CNN did some really good reporting over the weekend on the economy, especially the film on the deficit called I.O.U.S.A, which showed how the deficit ballooned under Ronald Reagan, was actually coming down at the end of the Clinton years, and has tripled under George W. Bush.   What all this demonstrated was that conservative economic ideology is a road to devastation, but played into the conservatives hands to make you afraid of the deficit so that the short term spending required to stimulate the economy will be tempered by this fear.  In almost every other show, deficit spending was advocated with a mixed message.  This was especially exemplified by host Christine Romans of CNN who would mouth the words, “we need to increase the deficit in the short term”, but the sighs and eye rolling (body language) was giving the stronger message of be afraid.  What really drove me crazy was that although everyone seems to agree that at some point we will need to reign in the deficit, no one had answer for how.  It is a legitimate question for the press to ask what that plan is, it is not legitimate to let the “loyal opposition” criticize the Obama plan, and not give their own plan for this.  As I noted Sunday (The Dismal Science), World War II began the biggest deficit spending as a percentage of GDP we have ever experienced and healed the Great Depression.  The Obama administration will not have the advantage of this kind of focusing event so that people understand that the short term is our future.
• Then there was the discussion of the Israeli/Hamas war on Fareed Zakaria’s GPS.  After some lively debate, one of the guests, Hanan Ashrawi from the West Bank, a moderate Palestinian was asked a direct question:

ZAKARIA: Hanan Ashrawi, you are a Palestinian moderate by everyone’s acknowledgement. So, let met ask you, what do you want from Israel, from the United States right now? What do you think would bolster your power and influence in Palestine and in the region?

ASHRAWI: I think there should be an immediate, immediate cessation of violence. Stop the assault on the Palestinians.

People don’t see this as an attack on Hamas, which is, of course, a large movement with a small militia or military wing. And a regular army cannot defeat irregular forces, as you know.

And the casualties and the victims have all been, on the whole, the innocent civilians. This has to stop. Men, women and children are being killed. Whole families are being obliterated.

This is very, very painful. And it is creating a sense of anger, hostility, extremism among the Palestinians, and tremendous pain and suffering.

Let’s find quickly, quickly a solution that addresses the real issues, that addresses the real causes. We cannot afford anymore a business-as-usual approach to peacemaking.

She said nothing.  Where was the risk taking to find a solution?  What she said was stop the violence and then find a solution.  Isn’t that what has been done in the past in this ever spiraling circle of violence?  Here is the problem in a nutshell.  It is time to let violence run its course.  When people get desperate enough, then they will compromise (Disproportionate Response?).

Another week where hard questions are being either dodged or not asked.  Oh well…