Tag: neoliberalism

By Le Gauchiste

The term “Neoliberal” is used a lot here at Daily Kos: 203 posts included the term during the first half of 2015 alone, a little more than one every day. Many of these posts stimulate lively discussion, especially regarding the alleged neoliberalism of various Democratic Party figures, most notably President Obama and Hillary Clinton.

Quantity is not always a sign of quality, however, and many of these discussions suffer from a failure to define neoliberalism adequately or even at all, leading to understandable confusion and misplaced accusations that the term is meaningless. This post will try to avoid that pitfall by proposing a definition of neoliberalism that emphasizes its nature as an ideology, and will then apply that definition to one of Clinton’s most important recent speeches, in which she was widely reported to have returned to traditional liberalism.

The Greeks have said enough! Hope has defeated fear and SYRIZA has won the election and have beaten New Democracy and the fear-mongers, as expected.  This is a major victory for anti-austerity forces which could change the economic and political landscapes.

However, they did not win an outright majority (they were short 2 seats) and were forced into coalition with a right-wing, nationalist (pro-Greek Orthodox) anti-austerity party, the Independent Greeks (referred to as ANEL from now on).  

Irrespective of this, we do have quite a lot to celebrate! The election of SYRIZA is a shot directly across the bow of neoliberalism and its flagship of ideas, aka as the austerity project. The European ruling class (which includes mainstream political leaders) are a wee bit shaken especially Germany.  Whether or not the Troika is forced to negotiate the debt successfully, this is a victory and it is forcing the ruling class in Europe to take stock over whether austerity (and destroying the working class) is more important than the EU project. The stakes are literally that high!  

Most probably people have heard of the bizarre investigative journalism by The Mail on Sunday in an article which appeared on Easter Sunday (of all days in the year). The Mail on Sunday sent in a reporter, a wannabe Jimmy Olsen, to investigate provision of food by food-banks in Britain and that reporter literally took food out of the mouths of the hungry in order to prove some point. This provoked a backlash on social media that demonstrated that the neoliberal agenda seems to not have sunk too deeply in the hearts and minds of the British people. That is a relief and quite honestly more than I expected, given the constant barrage in the newspapers and on the news on telly that has never questioned the logic (forget the morality) of welfare caps and cuts to welfare benefits.

ht: my sister Mia for comments and editing on this piece

I was asked to contribute to the Daily Kos Social Security blogathon today to draw attention to the neoliberal attack on it. I hope you visit and like my contribution.

I have referenced this before, but there hasn’t really been enough of a movement on the this issue, and it’s an important one. It’s specifically important right now when Washington DC is completely stuck on stupid in a self created crisis. This crisis started in 2010 when the debt ceiling was not secured in the Bush tax cut deal with Republicans by President Obama and Senate Majority Leader Harry Reid. Many of us predicted it would lead to the debt ceiling debacle in 2011 which in turn led to the fiscal cliff negotiations and the sequester that is now a reality.

However, it could end anytime with House Democratic Representative John Conyer’s bill to just repeal the sequester; that is, if he got proper support. I think that needs to be a goal along with forever protecting Social Security from neoliberal economics and the politicians that support it. After all, this sequester was a conscious bipartisan decision on their part to put Social Security in danger now that a 130 billion net cut within the chained(superlative) CPI is now on the White House’s website in its proposal to stand in place of the sequester.

What we are hearing to justify it are not only exaggerations and lies about Social Security being unsustainable, those lies are based on inaccurate accounting standards that have pervaded our entire government; the CBO, and yes, even the Social Security Trustees Board itself at times over the years. Let’s face it; the Social Security Trustees Board has a broad history of being overly pessimistic.

Have you heard about Dick Durbin’s proposal for a new Social Security reform commission?  It sounds remarkably like the failed Simpson-Bowles Catfood Commission, complete with special rules that allow its recommendations, if approved by the commission, to take the express route to the floor of Congress for a vote with no amendments and limited debate.  

The number two Democrat in the Senate championing this bipartisan bill was asked if this new commission would be like the Greenspan commission of the 1980’s and he said that he prefers to refer to it as similar to Simpson-Bowles.  One of the most interesting things about it is that this time, the commission won’t be dissolved after it finishes its work.  It comes back to life every ten years.

So while we are very happy that the Senate rejected Chained CPI in the budget that they passed last week, the reason why it was rejected is most likely because a separate commission for “reforming” Social Security is on the way, and there are other reasons to use caution while considering the weight and effect of the Sanders amendment.

In a recent article, Dean Baker wonders why the media elites did not find the Sanders amendment to be newsworthy.  I agree with his points about the national media corruption on the subject, and that they have been pushing their favorable opinion on cuts, and how the facts and arguments against the cuts have been curiously absent in their reporting and their programs.

Senate Unanimously Votes Against Cuts to Social Security: Media Don’t Notice

This is why the vote on the Sanders amendment should have been newsworthy. Here was an opportunity for all the senators who have explicitly or implicitly supported the adoption of the chained CPI to step up and say why the switch to the chained CPI was a good and necessary measure. However, not one senator was prepared to stand up and argue the case. Not one member of the senate wanted to go on record in support of this cut to Social Security.

With all the Republicans who pronounce endlessly on the need to cut entitlement spending, there was not a single Republican senator who was prepared to say that switching the Social Security COLA to a chained CPI was a good idea. And even though President Obama has repeatedly stated as clearly as he could that he supported the switch to a chain CPI, there was not one Democratic senator who was prepared to stand up and speak in solidarity with the president.

But let’s not get complacent. There is nothing that the media elite and the proponents of Social Security cuts would like more than for us to let our guard down and say “phew, now we can relax because the Senate said they oppose chained CPI cuts to Social Security.”  In fact, it would not surprise me at all if the reason that this amendment was allowed to the Senate floor by the Democratic leadership was that it might calm down the grassroots left and organizations like AARP and give us a false sense of security, resulting in less organizing, less protesting, while they form a new commission prepare the way for the cuts that they are clearly determined to impose.  

The people in power who want to cut Social Security have been working at this for decades, with renewed fervor in recent years, some of them spending millions for astroturf groups, propaganda campaigns, and influence over elected officials.  One non-binding amendment in the Senate is no hurdle for them and if anything, I believe they will try to use it to their advantage.

Some other cautions about the Sanders amendment:  

1) The amendment was framed as opposition to using chained CPI for veterans benefits.

2) The amendment is non-binding.

3) While Sen. Sanders tried to get a roll call vote, he was persuaded by Sen. Murray to accept a voice vote, so none of the Senators, except the sponsors of the amendment, are on the record. The sponsors are: Sens. Bernie Sanders (I-Vt.), Tom Harkin (D-Iowa), Mazie Hirono (D-Hawaii) and Sheldon Whitehouse (D-R.I.).  Four senators.

4) Sen. Burr of North Carolina is on the record as saying he “supported protecting veterans, but supported using chained CPI elsewhere”.

Cross posted at our new beta site Voices on the Square and The Stars Hollow Gazette

Yes, another crash is coming. I can’t predict precisely when as that would be a fool’s errand, but much closer than you think. It will probably be after our President is reelected and will care very little what you or I think once he and his treasury push for criminal TBTF banks to bailed out once again. Doctor Doom: the nickname for economist Nouriel Roubini: one of the relatively few outside the mainstream(part of the Got It Right (pdf) project) who predicted the last crash thinks 2013 is a perfect storm for another one which will be even worse and it makes sense.

Despite on theoretical fiscal policy limits with regard to the US, Roubini is absolutely right on the political deadlock with the coming crisis. We wasted our last crisis and that’s something Conservatives have not done whether we’re talking about the stagflation crisis of the 70s or 9/11. There won’t be as many political options this time to prop up the underlying economy in 2013 because Democrats have failed to change the Senate rules because most of them secretly like the way things work or don’t work in Washington. Sadly, if Republicans take over both houses again, they will change the Senate rules as they threatening to do in 2005 and 2006.

Anyway some might still want to scoff at Roubini’s prediction, but that will come back to bite them in the ass. Not even Roubini can predict the exact moment it will happen, but if one knows anything about the history of financial crashes, since the 80s when the 1933 banking reforms passed by FDR started slowly being dismantled, they started happening once again in a 5-7 year time-frame(and even closer than that if you count global stock crashes which count now more than ever since our markets turned dark with OTC derivatives and Information Asymmetry all around); some worse than others as the 2008 bust was on par with 1929 but you get the idea.

• Black Monday (1987)
• Black Wednesday (1992)
• Asian financial crisis (1997)
• Mini-crash (1997)
• Dot-com bubble(2000)
• Economic effects arising from the September 11 attacks (2001)
• Stock market downturn of (2002)
• United States bear market of (2007)
• Global financial crisis (2008)
• European sovereign-debt crisis (2010)

One of President Obama’s political heroes, Abraham Lincoln famously said, “It is true that you may fool all of the people some of the time; you can even fool some of the people all of the time; but you can’t fool all of the people all of the time.”  The question for today’s politicians is, can you fool 99% of the people 100% of the time?  That is, can you create and implement policies that blatantly serve a tiny fraction of the people at the expense of all of the people and get away with it?

As President Obama’s populist rhetoric heats up into campaign mode and important measures of his own and his party’s performance lag, the question arises, will the voters notice amidst all of the rhetoric that the job market is not improving and income inequality is growing?