Courtesy: David Shankbone, NYC
And, one has to think back to 'peacemaker', David Chamberlain, who, rather than risk any further war for Britain, signed meaningless pieces of paper with some of Europe's most despot leaders. The world is too complex for one to assume that they will just avoid war at all cost, IMO. Akin to an Ostrich with head in sand,. No doubt, the best way to avoid war is to be sufficiently strong to deny a nation the opportunity at war.
In that regard the US is 'living on borrowed time'. Much of our war fighting technology was developed from the 60's forward. Now that technology resides with other nations as well while our status as the center of technology has dropped. For example: as Russia and other nations with borders in the Arctic are mapping out their claims for resources in/around the shelf, the US is ill prepared to take advantage of the opportunity to explore and develop those resources. Being the world's largest debtor nation we are forced to cut spending rather than build ice breakers. A la Glenn's corollary.
China achieved a nuclear capability in Oct, 1964. Beginning in 2/72 Kissinger made a total of nine trips to China, agreeing to a Vietnam troop reduction and a 'one China' policy in moving China off the dime to open up economically. Apparently, the thinking within the Nixon/Kissinger administration was that China would be less of an adversary if they were joined in international trade. Some 40 years later one would have to discern who is more at risk from nuclear attack, the US or China? From a recent speech by the Sec. of State one gathers that the US is whizzing up a rainspout in herding China to conform to UN like expectations. Seems that as long as those pork bellies keep moving everything will work out.
It would seem a 'go slow' policy with China might have been a more rational approach to globalizing that area of the world. But, one can understand that the business community wanted to get in there and pollute with the best of them. The Corpocracy has made it real clear they intend to stick with their China/globalization policies. Perhaps more importantly, China has made it equally clear they will stick with their globalization policies as well.
One has to note that the overall strategy of the Corpocracy in bringing the working class face to face with China and globalization is, and has been, the threat of this or that crisis while quickly piling on debt to make the threat seem more real. The strategy has worked well in setting the stage for a depression era where the likes of a FDR will, at some point, come along with a 'new deal'. But first, the workers have to own their debt, the federal now standing at about $45k for each US person. And, state governors are beginning to take actions to make us feel other debts and obligations. For example, Governor Christi has put programs in place that will alleviate one-half of NJ's debt in about 30 years.
Ultimately, we will be able to weigh our diminished fortunes in light of any 'new deal', the potential for nuclear confrontations and the well being of the billions in China, India, Tibet and around the world.
Otherwise, we have the Corpocracy we deserve.
5 Comments
Roy, Beck misses the real corollary here. He focuses on the debt/debtor relationship, which completely misses the mark. I will show you how, in a just a moment.
The relevant corollary lies in the vast untapped resource in human capital. WWII opened the gates to pulling millions of women into the labor market lowering the labor cost rate for business and vastly increasing consumption dollar capacity as a result of these millions of new wage earners entering the consumer and labor market place. It unleashed enormous capital and enterprise growth potential in the U.S.
China is now in the same position of being able to bring not millions, but, 100's of millions of new people into the labor and consumer marketplaces.
The reason the debt/debtor relationship is not the appropriate corollary rests with the fact that U.S. debt to GDP was higher after WWII than today. And that debt did not hinder the vast growth potential of the American economy through the rest of the 40's through the 1990's.
When Beck talks economics, it is best to turn him off. What he knows about economics is equal to what a dog knows about biting - i.e. the dog won't bite the hand that feeds it. And Beck won't bite the hand of the under-educated who feed his profits in return for reinforcing their lack of education as a strength.
David, Glenn’s corollary hit home with me. True, the US is currently running about 70% debt to GDP whereas, near the end of WWII debt to GDP was about 121%. But, as Glenn noted, our debt is but one factor of many. Here is a good article that compares the two eras quite correctly, IMO. You may note that no mention was made of the increased labor force or women entering the work force.
The numbers, 70% vs 120%, show only a part of the picture. Fact is, we have been seriously hurt as a nation. This debt will be with us for…ever. The government will not take the drastic measures implemented after the depression/war. And, we’ve already put our women to work. What’s next, the kids? And, there is no ‘industrial boom’ in our tea leaves to refurbish our coffers. Quite the opposite, IMO, as more will be relocating to China. Bush couldn’t create any jobs and Obama hasn’t created any jobs. There must be a reason?
Reason: the Corpocracy has been working hard for 30 years to bring the US middle class worker in line with developing nations around the world. Called globalization. Part in parcel, the Corpocracy piled on debt and delivered this great recession. There won’t be any relief until US workers wages are on parity with the developing world.
There is no plan to create jobs, no plan to cut the deficit, no plan to right the unbalance in our foreign trade, no plan to reform tax policy, no plan to talk straight to China.
Talking straight with China reminds me of David Chamberlain wandering Europe and signing useless peace agreements leading up to WWII. China is the 800 lb gorilla in the trade room. A communist state ruling with corruption and statism, playing the cards to ensure they always have a win-win situation at the expense of the US. China runs a trade deficit with all their major trading partners except the US. China is/has been exporting nuclear technology to unfriendly nations, antagonizing where border tensions arise. Then there is Tibet, spending for a blue water navy and ballistic submarine fleet, stealth fighters and the like. The Corpocracy seems right at ease, nothing to see here, move along, keep them pork bellies moving.
Otherwise - -
Roy, What drastic measures after WWII? America went on a growth and spending binge that has yet to be halted. There were no drastic economic measures taken after WWII. The rapid growth of the labor force in conjunction with our development aid overseas to create overseas markets took care of all our Depression era and War debt.
We are in trouble going forward due to the lack of fiscal discipline to rein in spending, or raise taxes to eliminate deficits. Plain and simple. Doubling our national debt during the GW Bush years has made the more distant problem of Medicare/Medicaid deficits a pressing near term problem that will bury us by the end of this decade.
China is doing much of what we did, Post WWII, investing in education, tapping new labor force resources from their population, and contracting with international partners for long term trade agreements based on their new found growth in manufacturing and technological development.
America has to do two major things to rescue itself. Resolve the Medicare/Medicaid inflation and deficit issue, and innovate for exports like there was no tomorrow. Both are doable from a policy construction point of view. The big question is whether these objectives are politically doable. And the answer so far is NO! Which leads us directly to a third objective, more important by precedent order than the two above, and that is political reform which removes from legislative and electoral processes, corporate and wealthy special interest money influences.
That is a very tall order. The very short term economic recovery underway is going to make that order even taller as the people are lulled into a false sense of security by the improved economic data. About half of Americans now see the economy as improving. That is not a good sign for the prospect of political reforms that will be essential to rescuing our longer term debt default future.
A lot of good things are happening, but, none of them are addressing the crisis looming at the end of this decade. I see this morning in the WSJ where Obama is going to review the entire regulatory plane to eliminate contradictory and un-fulfilling business and corporate regulations. Needs doing, but, not sure if that is an opening bargaining chip gambit toward political reform or just another measure to avoid dealing with the 3 major issues discussed above. Time will tell.
This excerpt from the article may be enlightening, David.
•Price controls. War is often inflationary, because it drives up demand for raw materials, such as steel. To combat rising prices, both for consumers and the government, the Office of Price Administration froze prices on many items, starting with coffee and sugar in May 1942.
•Rationing. To make sure there were enough vital materials, such as rubber and oil, the government started rationing. Everything from tires to cheese to typewriters was rationed. An "A" rationing sticker, the most common type, gave drivers 4 gallons of gas a week. And drivers were urged to keep their speed below 40 mph — as much to save tires as fuel. Posters warned, "If you're driving alone, you're driving with Hitler."
•Taxes. The top income tax rate in 1929 was 24%, starting at $100,000 — which is the equivalent of $1.3 million today. The top rate rose sharply in 1932 to 63%, but it was levied on income above an inflation-adjusted $15.8 million. By 1944, however, the top rate soared to 94%, starting at today's equivalent of $2.4 million.
Several years ago, in rummaging through some of my parents old papers I came across a rationing card from the war era. Can you imagine the Corpocracy taking such strong measures in addressing our debt?
I agree with you that government has failed to address the debt in any measurable way. The Mayor of Toledo wants to sell a large chunk of their waterfront to Chinese investors which, according to the Mayor will ‘create jobs’. Surprised that he has nothing to say about the $2-3T pension/retirement defaults coming to major cities in the US this year. It becomes more clear with each passing day that the Corpocracy has no interest in taking the heat off the economy. Perhaps, when they hold all the cards we will begin to see the ‘new deal’. That is, when corporate taxes or low to nil, when wages fall to parity with developing nations, when regulations are reduced, EPA defanged, etc,
So far, most people are going along with the status quo. The wealthy have quadrupled their wealth over the last 30 years while the worker is steadily losing a foothold in the economy. If workers continue to take the hit for ‘globalisation’ it may bode well for a new 3rd party.
Donald Trump is really going off on the Corpocracy (my word) re China and ‘free trade’. Says he would tax China and charge S. Kor for protection, bring respect to the US again,etc. Just more hyperbole, IMO. If Trump could he would push oil to $800/barrel. We really need a 3rd party that will advocate for abolishment of corporate personhood law, implement real campaign finance reform and set down party rules that would remove the influence of money from politics/gov’t.
Otherwise, we have the Corpocracy we deserve.
Roy, you initially said: "The government will not take the drastic measures implemented after the depression/war."
I asked you WHAT drastic measures after the Depression/War?
Now, you reply with quotes regarding drastic measures taken DURING the war, NOT AFTER.
We are not engaged in the kind of all-out commitment war today that we were in WWII. Ergo, though foolish, we borrowed our way through our two wars in the Middle East. Drastic measures were NEVER necessary in the 21st century. All that was needed was to pay for the wars as we went along instead of putting them on the charge card, by both raising taxes (mutual public sacrifice) and spending cuts. Neither would have been drastic in order to pay for the current wars in the Middle East.
Whether it be a third party or simply the Founder's design of an anti-incumbent vote throttling the Parties, I agree with you, as you know, in ending the corporate and wealthy special interest money influence on policy and legislation.
Public Citizen and Common Cause are both taking the issue of the Supreme Court's ruling in Citizen's United v FEC, head on. You should support them by adding your voice to that cause. They will eventually be successful in overturning that ruling, but, it will happen sooner than later with all our support climbing on board sooner, instead of waiting for a debt collapse.