// archives

Austerity

This tag is associated with 7 posts

‘Twas Austerity That Did It.

“Yes, the victorious campaign to leave the European Union won on the basis of xenophobia and the demonization of immigrants. For anyone of a cosmopolitan bent it’s a terrible outcome…But if you tell people you know what’s best for them for years and years while their prospects wither and their lives are immiserated, at some point you should expect some kind of reaction.”

In the Prospect, David Dayen explains how deficit-witch-hunting and hubris paved the way for Brexit. particularly David Cameron and the Tories’ “general belief in expansionary austerity, that you could cut your way to prosperity. For those that don’t recall, this led to the brink of a triple-dip recession, and terrible growth numbers for years and years…What Leave offers, a toxic stew of isolation and racism, isn’t any good either. But when elites spend this long doing nothing for large swathes of the population, they’re willing to listen to anyone with a different idea.”

Since the UK’s faceplant last week, there’s been some talk (and. for some, wishful thinking) that Brexit is the prelude to Trump, fact-free appeals and all, and lord knows we spent far too much time of late playing the austerity game also. But I’ll stand by my “nope, not gonna happen” prediction here: The UK electorate is 90% white, America’s is one-third non-white — That’s a big difference, and the same sorts of nativist appeals just aren’t going to play here anymore — which I am very thankful for.

Still, Brexit is another sterling example of how, when people are justifiably angry about being screwed over, many of them may not vote in their best interests. And it’s emblematic of one of the more insightful comments I’ve heard recently about 2016 (and unfortunately I can’t figure out where I first saw it): When you have Latin American levels of inequality, you’ll end up with Latin American politics.

Rolling in the Deep.

“The Deep State is the big story of our time. It is the red thread that runs through the war on terrorism, the financialization and deindustrialization of the American economy, the rise of a plutocratic social structure and political dysfunction. Washington is the headquarters of the Deep State, and its time in the sun as a rival to Rome, Constantinople or London may be term-limited by its overweening sense of self-importance and its habit, as Winwood Reade said of Rome, to ‘live upon its principal till ruin stared it in the face.’ ‘Living upon its principal,’ in this case, means that the Deep State has been extracting value from the American people in vampire-like fashion.”

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.”

The Can Likes Kickbacks.

“In 2014, for the first time in three years, the vote to extend the nation’s debt ceiling did not bring the US to the brink of default in a high-stakes game of slash and burn…It was a striking turnaround for the forces of austerity. One of the biggest losers? The Campaign to Fix the Debt, the $40 million AstroTurf austerity group, financed by Pete Peterson and other Wall Street big wigs, and fronted by Maya MacGuineas, Erskine Bowles and Alan Simpson. Call it Alan Simpson’s last harrumph.”

In general, I think victory laps are a bad idea, especially since sequestration continues and it’s not like austerity is suddenly out of fashion in this godforsaken town. Nonetheless, The Nation‘s Mary Bottari looks at how citizen and netroots activism helped beat back (for now) the deficit witchhunt, and much of the corporate rapacity and profiteering attending it.

The pic above is my friend Alex Lawson crashing a Pete Peterson Astro-Turf event a few months ago. “‘Aaar!’ he said. ‘Fix the debt, but let me keep my corporate booty! Fix the Debt’s founders have more than $500 million in offshore corporate booty.'”

The Neverending Shutdown.

“[W]ith recovery still perilously weak in 2010, the obvious response would have been a second dose of stimulus spending. But the political world was already moving in the opposite direction…In the end, for reasons both political and ideological, Obama decided that he needed to demonstrate that he took the deficit seriously, and in his 2010 State of the Union address he did just that…The Beltway establishment may have applauded Obama’s pivot to the deficit, but much of the economic community saw it as nothing short of a debacle.”

It’s the Austerity, Stupid: In Mother Jones, Kevin Drum surveys the rise of deficit hysteria in the Beltway over the past several years, with particular attention paid to the Reinhart-Rogoff debacle. “It’s not as if we needed the skills of Nostradamus to predict the consequences of austerity. It’s pretty much textbook economics.” (Rhino via here.)

“It was an awful time. Federal employees had to take unpaid furlough days. Beneficiaries were thrown off of federal programs. Courthouses had to be sold. Federal agencies like the FBI, the Food and Drug Administration, and the National Institutes of Health strained to meet commitments, leading to more crime, more outbreaks of disease and less basic research, among other horrors. This may sound like a description of the recent government shutdown, which ended October 16. But this describes the fallout from sequestration, the across-the-board cuts to discretionary spending that took effect March 1—arbitrary reductions that closely parallel the effects of the shutdown.”

Meanwhile, as David Dayen recently noted in The New Republic, the deficit witchhunt is continuing to wreak havoc across America, in the form of the sequestration budget. “Sequestration and artificial spending caps have become the new normal, and it’s redefining the role of government, rolling back the ambitions of the past, and constraining needed investments in the future. So let’s call it what it is: a government shutdown that’s infinitely worse than the one that just ended.”

Potemkin Prosperity.

“What they’ve done is they have filled the shop front window with a picture of what was the business before it went bankrupt or closed. In other words, grocery shops, butcher shops, pharmacies, you name it, they have placed large photographs in the windows that if you were driving past and glanced out the window, it would look as if this was a thriving business. It’s an attempt really by the local authority to make the place look as positive as possible for the visiting G8 leaders and their entourages, and it’s really tried to put a mask on a recession that has really hit this part of Ireland really very badly indeed.”

Not from The Onion: The Northern Ireland town of Enniskillen preps for the G8 summit by constructing a Potemkin village untouched by Britain’s disastrous austerity measures. “This is one big initiative really stemming from the Foreign Office in London. This is David Cameron’s gig. It’s his invitation, it’s his decision to host the G8 in County Fermanagh, which is, don’t forget, part of the United Kingdom.”

For Want of a Spreadsheet Check…

“This error is needed to get the results they published, and it would go a long way to explaining why it has been impossible for others to replicate these results. If this error turns out to be an actual mistake Reinhart-Rogoff made, well, all I can hope is that future historians note that one of the core empirical points providing the intellectual foundation for the global move to austerity in the early 2010s was based on someone accidentally not updating a row formula in Excel.”

As Mike Konczal of Rortybomb explains, the Reinhart-Rogoff paper “Growth in a Time of Debt,” which argued that high debt-to-GDP ratios stymie growth and has been one of the key economic foundations for recent deficit hysteria, turns out to be fundamentally flawed.

“This has been one of the most cited stats in the public debate during the Great Recession,” embraced by both Paul Ryan and the Washington Post. And it’s totally upside down. As Konczal says, “[t]he past guides us…it tells us that a larger deficit right now would help us greatly.”

Update: Dean Baker weighs in. “If facts mattered in economic policy debates, this should be the cause for a major reassessment of the deficit reduction policies being pursued in the United States and elsewhere. It should also cause reporters to be a bit slower to accept such sweeping claims at face value.”

Thousands are Sailing.

“‘The potential for exit in terms of emigration is huge and it’s a major part of the Irish story’…’Ireland is on the verge of losing a whole generation. People are simply not able to get a job in Ireland, not happy with the quality of life here and they are upping and leaving.

Faced, like so many other nations, with a bank-fueled financial meltdown and a grueling austerity program to make up the slack (sound familiar?), the Irish are — well, according to Reuters at least — either leaving or taking it in stride…for now. “‘It’s a cultural characteristic of the Irish people,’ said portrait photographer Kevin Abosch as he strode down O’Connell Street. ‘Generations of pacifism have been bred into them.’

Particularly as I was just writing up The Town, it reminds me of that line from The Departed: “If we’re not gonna make it, it’s gotta be you that gets out, cause I’m not capable. I’m f**king Irish, I’ll deal with something being wrong for the rest of my life.

Omsbudsdog Emeritus

Recent Tweets

Photos on flickr

Instagram

  • Mr. Lincoln's Army. #throwbackthursday
  • Bro-in-law doing good.

Follow Me!

Pinterested

Follow Me on Pinterest 
My Pinterest Badge by: Jafaloo. For Support visit: My Pinterest Badge

Visions



The Lobster (7.5/10)

Currently Reading


Chain of Title, David Dayen

Recently Read

The Big Sleep, Raymond Chandler
Of Dice and Men, David Ewalt

Uphill All the Way

Syndicate this site:
RSS 1.0 | Atom (2.0)

Unless otherwise specified, the opinions expressed here are those of the author (me), and me alone.

All header images intended as homage. Please contact me if you want one taken down.

GitM is and has always been ad-free. Tips are appreciated if the feeling strikes.

Archives