Wonkblog’s Matt O’Brien briefly surveys the downward pressure on our sinking middle class. “[I]t’s still a heckuva lot better than households in the bottom 25 percent, whose wealth never grew during the good times, and then plunged 60 percent during the bad ones. That’s because, for both the middle and working classes, real wages have been stagnant the past 30 years, and housing equity has taken a nosedive.”
In very related news, and in a somewhat overwritten but otherwise worthy piece, former GOP Congressional staffer Mike Lofgren summarizes the problem of America’s Deep State (a term Lofgren did not coin, borrowed from Turkey.) Think the military-industrial complex, now infused with financial sector/Pete Peterson-style rent-seeking. “[This] is not an exposé of a secret, conspiratorial cabal; the state within a state is hiding mostly in plain sight, and its operators mainly act in the light of day.”
As Summers supporters — including the President — try to push him for Federal Reserve Chairman (over the more experienced Janet Yellen), Dean Baker asks the obvious question: At this late date, why, exactly, should Larry Summers be head of anything? “In short, if we look at Larry Summers track record in dealing with crises it is pretty abysmal. But on attendance, he gets an ‘A.'”
Seriously, how many more times does this guy have to be wrong? And why pick for Fed Chair someone, as Sheila Bair succinctly put it, who was clearly “part of the deregulatory cabal that got us into the 2008 financial crisis?”
And, let’s be clear: Even putting that trillion-dollar fiasco aside — other than that, Mrs. Lincoln, how was the play — from attacking Brooksley Born in the late 90’s to his embarrassing interim at Harvard (where, on top of everything else, Wonderboy lost the endowment $2 billion) to ham-stringing the 2009 stimulus out of the gate, everything Summers touches turns to lead.
But, lo, here he is once again, being force-fed to us by the usual suspects as a brilliant speaker of economic truths. Yet another classic case of failing-up in Washington, where it’s always better to be wrong and with the herd than prescient and correct.
Update: “Although Summers had been an early advocate of Warren’s idea to establish a consumer regulator to deal with abusive lending, he was rankled by the support she received from other administration officials, particularly Christina Romer, who chaired Obama’s Council of Economic Advisers.” Among his many other sins, Summers also went out of his way to block Elizabeth Warren as CFPB head — a bureau she in effect created — apparently because of personal pique. So, yeah, let’s put this guy in charge. He is so SMRT!
In any case, Margaret Thatcher, 1925-2013. As I said when Strom Thurmond and Jesse Helms passed, I’m of the Hunter Thompson on Nixon school when it comes to political obits. Let’s not diminish what Thatcher passionately stood for throughout her life by engaging in ridiculous happy talk at the moment of her death.
This Prime Minister has lot to answer for, from bringing free market absolutism and trickle-down voodoo economics to England, with all the readily preventable inequality it generated, to supporting dictators and tyrants around the world — Pinochet, Botha, the Khmer Rouge — to, of course, the Falklands War.
Much as with Reagan here in America, England still lives under Thatcher’s shadow. To quote today’s Guardian, “her legacy is of public division, private selfishness and a cult of greed, which together shackle far more of the human spirit than they ever set free.” But to her credit, at least Thatcher (a chemist by training) was very vocal about the threat of climate change in the last years of her life.
Update: Salon‘s Alex Pareene has more evidence for the prosecution, including graphs of the rise of inequality and poverty on Thatcher’s watch:
“Britain no longer ‘makes’ much of anything, and when those lost jobs were replaced, they were replaced with low-wage, no-security service industry work…Really, it’s hard to argue with former London mayor Ken Livingstone, who remembered Thatcher on Sky News yesterday: ‘She created today’s housing crisis. She created the banking crisis. And she created the benefits crisis…In actual fact, every real problem we face today is the legacy of the fact that she was fundamentally wrong.'” (Last quote also birddogged by Dangerous Meta.)