Tag: News

On This Day in History: October 8

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

October 8 is the 281st day of the year (282nd in leap years) in the Gregorian calendar. There are 84 days remaining until the end of the year.

 

On this day in 1871, flames spark in the Chicago barn of Patrick and Catherine O’Leary, igniting a 2-day blaze that kills between 200 and 300 people, destroys 17,450 buildings,leaves 100,000 homeless and causes an estimated $200 million (in 1871 dollars; $3 billion in 2007 dollars) in damages.

The Great Chicago Fire was a conflagration  that burned from Sunday, October 8, to early Tuesday, October 10, 1871, killing hundreds and destroying about 4 square miles (10 km2) in Chicago, Illinois. Though the fire was one of the largest U.S.  disasters of the 19th century, the rebuilding that began almost immediately spurred Chicago’s development into one of the most populous and economically important American cities.

On the municipal flag of Chicago, the second star commemorates the fire. To this day the exact cause and origin of the fire remain a mystery.

The fire started at about 9 p.m. on Sunday, October 8, in or around a small shed that bordered the alley behind 137 DeKoven Street.[3]  The traditional account of the origin of the fire is that it was started by a cow kicking over a lantern in the barn owned by Patrick and Catherine O’Leary. Michael Ahern, the Chicago Republican reporter who created the cow story, admitted in 1893 that he had made it up because he thought it would make colorful copy.

The fire’s spread was aided by the city’s overuse of wood for building, a drought prior to the fire, and strong winds from the southwest that carried flying embers toward the heart of the city. The city also made fatal errors by not reacting soon enough and citizens were apparently unconcerned when it began. The firefighters were also exhausted from fighting a fire that happened the day before.

After the fire

Once the fire had ended, the smoldering remains were still too hot for a survey of the damage to be completed for days. Eventually it was determined that the fire destroyed an area about four miles (6 km) long and averaging 3/4 mile (1 km) wide, encompassing more than 2,000 acres (8 km²). Destroyed were more than 73 miles (120 km) of roads, 120 miles (190 km) of sidewalk, 2,000 lampposts, 17,500 buildings, and $222 million in property-about a third of the city’s valuation. Of the 300,000 inhabitants, 90,000 were left homeless. Between two and three million books were destroyed from private library collections. The fire was said by The Chicago Daily Tribune to have been so fierce that it surpassed the damage done by Napoleon’s siege of Moscow in 1812. Remarkably, some buildings did survive the fire, such as the then-new Chicago Water Tower, which remains today as an unofficial memorial to the fire’s destructive power. It was one of just five public buildings and one ordinary bungalow spared by the flames within the disaster zone. The O’Leary home and Holy Family Church, the Roman Catholic congregation of the O’Leary family, were both saved by shifts in the wind direction that kept them outside the burnt district.

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From Yahoo News Top Stories

1 Hungary toxic sludge spill reaches Danube

by Geza Molnar, AFP

Thu Oct 7, 11:38 am ET

BUDAPEST (AFP) – Hungary’s toxic sludge spill reached the Danube river Thursday with the first sightings of dead fish in Europe’s second longest river, officials said.

“I can confirm that we have seen sporadic losses of fish in the main branch of the Danube,” regional chief for the disaster relief services Tibor Dobson told AFP.

“The fish have been sighted at the confluence of the Raba with the Danube,” where water samples had shown a pH value of 9.1, he said.

On This Day in History: October 7

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

October 7 is the 280th day of the year (281st in leap years) in the Gregorian calendar. There are 85 days remaining until the end of the year.

On this day in 1955, Beat poet, Allen Ginsberg reads his poem “Howl” at a poetry reading at Six Gallery in San Francisco.

Irwin Allen Ginsberg (June 3, 1926 – April 5, 1997) was an American poet who vigorously opposed militarism, materialism and sexual repression. In the 1950s, Ginsberg was a leading figure of the Beat Generation, an anarchic group of young men and women who joined poetry, song, sex, wine and illicit drugs with passionate political ideas that championed personal freedoms. Ginsberg’s epic poem Howl, in which he celebrates his fellow “angel-headed hipsters” and excoriates what he saw as the destructive forces of capitalism and conformity in the United States, is one of the classic poems of the Beat Generation  The poem, dedicated to writer Carl Solomon, has a memorable opening:

I saw the best minds of my generation destroyed by

madness, starving hysterical naked,

dragging themselves through the negro streets at dawn

looking for an angry fix…

In October 1955, Ginsberg and five other unknown poets gave a free reading at an experimental art gallery in San Francisco. Ginsberg’s Howl electrified the audience. According to fellow poet Michael McClure, it was clear “that a barrier had been broken, that a human voice and body had been hurled against the harsh wall of America and its supporting armies and navies and academies and institutions and ownership systems and power support bases.” In 1957, Howl attracted widespread publicity when it became the subject of an obscenity trial in which a San Francisco prosecutor argued it contained “filthy, vulgar, obscene, and disgusting language.” The poem seemed especially outrageous in 1950s America because it depicted both heterosexual and homosexual sex at a time when sodomy laws made homosexual acts a crime in every U.S. state. Howl reflected Ginsberg’s own bisexuality and his homosexual relationships with a number of men, including Peter Orlovsky, his lifelong partner. Judge Clayton W. Horn ruled that Howl was not obscene, adding, “Would there be any freedom of press or speech if one must reduce his vocabulary to vapid innocuous euphemisms?”

In Howl and in his other poetry, Ginsberg drew inspiration from the epic, free verse style of the 19th century American poet Walt Whitman. Both wrote passionately about the promise (and betrayal) of American democracy; the central importance of erotic experience; and the spiritual quest for the truth of everyday existence. J. D. McClatchy, editor of the Yale Review called Ginsberg “the best-known American poet of his generation, as much a social force as a literary phenomenon.” McClatchy added that Ginsberg, like Whitman, “was a bard in the old manner – outsized, darkly prophetic, part exuberance, part prayer, part rant. His work is finally a history of our era’s psyche, with all its contradictory urges.”

Ginsberg was a practicing Buddhist who studied Eastern religious disciplines extensively. One of his most influential teachers was the Tibetan Buddhist, the Venerable Chögyam Trungpa, founder of the Naropa Institute, now Naropa University at Boulder, Colorado. At Trungpa’s urging, Ginsberg and poet Anne Waldman started a poetry school there in 1974 which they called the “Jack Kerouac School of Disembodied Poetics”. In spite of his attraction to Eastern religions, the journalist Jane Kramer argues that Ginsberg, like Whitman, adhered to an “American brand of mysticism” that was, in her words, “rooted in humanism and in a romantic and visionary ideal of harmony among men.” Ginsberg’s political activism was consistent with his religious beliefs. He took part in decades of non-violent political protest against everything from the Vietnam War to the War on Drugs. The literary critic, Helen Vendler, described Ginsberg as “tirelessly persistent in protesting censorship, imperial politics, and persecution of the powerless.” His achievements as a writer as well as his notoriety as an activist gained him honors from established institutions. Ginsberg’s book of poems, The Fall of America, won the National Book Award for poetry in 1974. Other honors included the National Arts Club gold medal and his induction into the American Academy and Institute of Arts and Letters, both in 1979. In 1995, Ginsberg won a Pulitzer Prize for his book, Cosmopolitan Greetings: Poems 1986-1992.

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From Yahoo News Top Stories

1 Pakistan Taliban attacks destroy more than 40 NATO vehicles

AFP

1 hr 4 mins ago

PESHAWAR, Pakistan (AFP) – More than 40 NATO vehicles were destroyed in two separate Taliban attacks in Pakistan Wednesday as the militants stepped up their efforts to disrupt supply routes into Afghanistan.

In the latest attack, at least 26 NATO oil tankers were torched when militants opened fire on a convoy of dozens of vehicles parked in Nowshera in northwestern Pakistan, police said.

Earlier militants attacked a depot housing 40 NATO oil tankers on the outskirts of the southwestern city of Quetta, killing a member of staff and destroying at least 18 vehicles.

On This Day in History: October 6

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

October 6 is the 279th day of the year (280th in leap years) in the Gregorian calendar. There are 86 days remaining until the end of the year.

On this day in 1927. The Jazz Singer makes its debut in New York City.

The first feature-length motion picture with synchronized dialogue sequences, its release heralded the commercial ascendance of the “talkies” and the decline of the silent film era. Produced by Warner Bros. with its Vitaphone sound-on-disc system, the movie stars Al Jolson, who performs six songs. Directed by Alan Crosland, it is based on a play by Samson Raphaelson.

The story begins with young Jakie Rabinowitz defying the traditions of his devout Jewish family by singing popular tunes in a beer hall. Punished by his father, a cantor, Jakie runs away from home. Some years later, now calling himself Jack Robin, he has become a talented jazz singer. He attempts to build a career as an entertainer, but his professional ambitions ultimately come into conflict with the demands of his home and heritage.

The premiere was set for October 6, 1927, at Warner Bros.’ flagship theater in New York City. The choice of date was pure show business-the following day was Yom Kippur, the Jewish holiday around which much of the movie’s plot revolves.  The buildup to the premiere was tense. Besides Warner Bros.’ precarious financial position, the physical presentation of the film itself was remarkably complex:

   

Each of Jolson’s musical numbers was mounted on a separate reel with a separate accompanying sound disc. Even though the film was only eighty-nine minutes long…there were fifteen reels and fifteen discs to manage, and the projectionist had to be able to thread the film and cue up the Vitaphone records very quickly. The least stumble, hesitation, or human error would result in public and financial humiliation for the company.

None of the Warner brothers were able to attend: Sam Warner-among them, the strongest advocate for Vitaphone-had died the previous day of pneumonia, and the surviving brothers had returned to California for his funeral.

According to Doris Warner, who was in attendance, about halfway through the film she began to feel that something exceptional was taking place. Jolson’s “Wait a minute” line had prompted a loud, positive response from the audience. Applause followed each of his songs. Excitement built, and when Jolson and Eugenie Besserer began their dialogue scene, “the audience became hysterical.”  After the show, the audience turned into a “milling, battling, mob”, in one journalist’s description, chanting “Jolson, Jolson, Jolson!” Among those who reviewed the film, the critic who foresaw most clearly what it presaged for the future of cinema was Life magazine’s Robert Sherwood. He described the spoken dialogue scene between Jolson and Besserer as “fraught with tremendous significance…. I for one suddenly realized that the end of the silent drama is in sight”.

Critical reaction was generally, though far from universally, positive. New York Times critic Mordaunt Hall, reviewing the film’s premiere, declared that

   

not since the first presentation of Vitaphone features, more than a year ago [i.e., Don Juan], has anything like the ovation been heard in a motion-picture theatre…. The Vitaphoned songs and some dialogue have been introduced most adroitly. This in itself is an ambitious move, for in the expression of song the Vitaphone vitalizes the production enormously. The dialogue is not so effective, for it does not always catch the nuances of speech or inflections of the voice so that one is not aware of the mechanical features.

Variety called it “[u]ndoubtedly the best thing Vitaphone has ever put on the screen…[with] abundant power and appeal.” Richard Watts, Jr. of the New York Herald Tribune called it a “a pleasantly sentimental orgy dealing with a struggle between religion and art…. [T]his is not essentially a motion picture, but rather a chance to capture for comparative immortality the sight and sound of a great performer.” The Exhibitors Herald’s take was virtually identical: “scarcely a motion picture. It should be more properly labeled an enlarged Vitaphone record of Al Jolson in half a dozen songs.” The film received favorable reviews in both the Jewish press and in African American newspapers such as the Baltimore Afro-American, the New York Amsterdam News, and the Pittsburgh Courier. The headline of the Los Angeles Times review told a somewhat different story: “‘Jazz Singer’ Scores a Hit-Vitaphone and Al Jolson Responsible, Picture Itself Second Rate.” Photoplay dismissed Jolson as “no movie actor. Without his Broadway reputation he wouldn’t rate as a minor player.”

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From Yahoo News Top Stories

1 French rogue trader Kerviel jailed, fined billions

by Annie Thomas, AFP

38 mins ago

PARIS (AFP) – A Paris court on Tuesday sentenced rogue trader Jerome Kerviel to three years in jail and ordered the 33-year-old to pay back the five billion euros that his market gambles cost Societe Generale bank.

The judge said the trader’s acts had “damaged the world economic order” and found him guilty of breach of trust, forgery and entering false data into computers at Societe Generale, of one of Europe’s biggest banks.

Kerviel looked shaken as the sentence was announced. Dressed in a dark suit and white shirt, he dodged hordes of journalists as he walked away from the courtroom to await further procedures that will decide when he enters custody.

A Small Win for Energy Conservation

The White House is getting back to the future by installing solar panels on the roof to provide hot water and some electricity to the Family quarters.

Just in time to give the Global Work Party a White House-sized boost, the Obama administration announced this morning  that they are going to put solar panels on the First Family’s living quarters, returning to a tradition begun by president Jimmy Carter and abandoned by Ronald Reagan.

It’s a great win for your efforts over the last months–everyone who wrote letters, signed petitions, and turned out for the Solar Road Show as we rolled down the east coast from Unity College towing one of the Carter panels. We were disappointed that day that the White House wasn’t prepared to go solar, but very happy that they took our suggestion to look into the matter seriously.

Solar panels on one house, even this house, won’t save the climate, of course. But they’re a powerful symbol to the whole nation about where the future lies. And the president will wake up every morning and make his toast by the power of the sun (do presidents make toast?), which will be a constant reminder to be pushing the Congress for the kind of comprehensive reform we need. And remember, President Obama’s not alone: tomorrow, Maldivian President Mohammed Nasheed and a crew from Sungevity will be putting solar panels on their official residence. It’s a trend!

Also in the news, the US military takes the a leap into the future. Maybe this will get the anti-environmentalists attention:

With insurgents increasingly attacking the American fuel supply convoys that lumber across the Khyber Pass into Afghanistan, the military is pushing aggressively to develop, test and deploy renewable energy to decrease its need to transport fossil fuels.

Last week, a Marine company from California arrived in the rugged outback of Helmand Province bearing novel equipment: portable solar panels that fold up into boxes; energy-conserving lights; solar tent shields that provide shade and electricity; solar chargers for computers and communications equipment.

The 150 Marines of Company I, Third Battalion, Fifth Marines, will be the first to take renewable technology into a battle zone, where the new equipment will replace diesel and kerosene-based fuels that would ordinarily generate power to run their encampment.

Even as Congress has struggled unsuccessfully to pass an energy bill and many states have put renewable energy on hold because of the recession, the military this year has pushed rapidly forward. After a decade of waging wars in remote corners of the globe where fuel is not readily available, senior commanders have come to see overdependence on fossil fuel as a big liability, and renewable technologies – which have become more reliable and less expensive over the past few years – as providing a potential answer. These new types of renewable energy now account for only a small percentage of the power used by the armed forces, but military leaders plan to rapidly expand their use over the next decade.

Perhaps in the next two years Congress will get on board and start passing smart energy legislation.

h/t to Peter Daou at his blog and Twitter

On This Day in History: October 5

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

October 5 is the 278th day of the year (279th in leap years) in the Gregorian calendar. There are 87 days remaining until the end of the year.

On this day in 1877, Chief Joseph of the Nez Perce Indians surrenders to U.S. General Nelson A. Miles in the Bear Paw mountains of Montana, declaring,

“Hear me, my chiefs: My heart is sick and sad. From where the sun now stands, I will fight no more forever.”

Chief Joseph (March 3, 1840 – September 21, 1904) was the chief of the Wal-lam-wat-kain (Wallowa) band of Nez Perce during General Oliver O. Howard‘s attempt to forcibly remove his band and the other “non-treaty” Nez Perce to a reservation in Idaho. For his principled resistance to the removal, he became renowned as a humanitarian and peacemaker.

Joseph the Younger succeeded his father as chief in 1871. Before his death, the latter counseled his son:

“My son, my body is returning to my mother earth, and my spirit is going very soon to see the Great Spirit Chief. When I am gone, think of your country. You are the chief of these people. They look to you to guide them. Always remember that your father never sold his country. You must stop your ears whenever you are asked to sign a treaty selling your home. A few years more and white men will be all around you. They have their eyes on this land. My son, never forget my dying words. This country holds your father’s body. Never sell the bones of your father and your mother.”

Chief Joseph commented “I clasped my father’s hand and promised to do as he asked. A man who would not defend his father’s grave is worse than a wild animal.”

The non-treaty Nez Perce suffered many injustices at the hands of settlers and prospectors, but out of fear of reprisal from the militarily superior Americans, Joseph never allowed any violence against them, instead making many concessions to them in hopes of securing peace.

In 1873, Chief Joseph negotiated with the federal government to ensure his people could stay on their land in the Wallowa Valley. But in 1877, the government reversed its policy, and Army General Oliver Howard threatened to attack if the Wallowa band did not relocate to the Idaho Reservation with the other Nez Perce. Chief Joseph reluctantly agreed.

Before the outbreak of hostilities, General Howard held a council to try to convince Joseph and his people to relocate. Joseph finished his address to the General, which focused on human equality, by expressing his “[disbelief that] the Great Spirit Chief gave one kind of men the right to tell another kind of men what they must do.”

Howard reacted angrily, interpreting the statement as a challenge to his authority. When Chief Too-hul-hul-sote protested, he was jailed for five days.

The day following the council, Joseph, White Bird, and Chief Looking Glass all accompanied General Howard to look at different areas. Howard offered them a plot of land that was inhabited by Whites and Indians, promising to clear them out. Joseph and his chieftains refused, adhering to their tribal tradition of not taking what did not belong to them.

Unable to find any suitable uninhabited land on the reservation, Howard informed Joseph that his people had thirty days to collect their livestock and move to the reservation. Joseph pleaded for more time, but Howard told him that he would consider their presence in the Wallowa Valley beyond the thirty-day mark an act of war.

Returning home, Joseph called a council among his people. At the council, he spoke on behalf of peace, preferring to abandon his father’s grave over war. Too-hul-hul-sote, insulted by his incarceration, advocated war.

The Wallowa band began making preparations for the long journey, meeting first with other bands at Rocky Canyon. At this council too, many leaders urged war, while Joseph argued in favor of peace.

While the council was underway, a young man whose father had been killed rode up and announced that he and several other young men had already killed four white men, an act sure to initiate war.

Still hoping to avoid further bloodshed, Joseph and other Nez Perce chiefs began leading his people north toward Canada.

With 2,000 U.S. soldiers in pursuit, Joseph and other Nez Perce chiefs led 800 Nez Perce toward their friends the Crows, but when the Crows betrayed them and joined the United States army for money, the Nez Perce went towards freedom at the Canadian border. For over three months, the Nez Perce outmaneuvered and battled their pursuers traveling 1,600 miles (2,570 km) across Oregon, Washington, Idaho, Wyoming, and Montana. General Howard, leading the opposing cavalry, was impressed with the skill with which the Nez Perce fought, using advance and rear guards, skirmish lines, and field fortifications. Finally, after a devastating five-day battle during freezing weather conditions with no food or blankets, Chief Joseph formally surrendered to General Nelson Appleton Miles on October 5, 1877 in the Bear Paw Mountains of the Montana Territory, less than 40 miles (60 km) south of Canada in a place close to the present-day Chinook in Blaine County. The battle is remembered in popular history by the words attributed to Chief Joseph at the formal surrender:

“Tell General Howard I know his heart. What he told me before, I have it in my heart. I am tired of fighting. Our chiefs are killed; Looking Glass is dead, Too-hul-hul-sote is dead. The old men are all dead. It is the young men who say yes or no. He who led on the young men is dead. It is cold, and we have no blankets; the little children are freezing to death. My people, some of them, have run away to the hills, and have no blankets, no food. No one knows where they are-perhaps freezing to death. I want to have time to look for my children, and see how many of them I can find. Maybe I shall find them among the dead. Hear me, my chiefs! I am tired; my heart is sick and sad. From where the sun now stands, I will fight no more forever.”

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From Yahoo News Top Stories

1 Europe triumph in thrilling Ryder Cup finale

by Rob Woollard, AFP

1 hr 21 mins ago

NEWPORT, Wales (AFP) – Europe defeated the United States to win the Ryder Cup here on Monday, prevailing in a thrilling contest to finally overcome a gutsy American fightback.

US Open champion Graeme McDowell was the hero for the Europeans, holding his nerve to close out a three and one victory over world number 16 Hunter Mahan amid joyous scenes at Celtic Manor.

The victory avenged Europe’s defeat to the Americans at Valhalla two years ago and was witnessed by an estimated 35,000 fans, who turned out in droves to see the first Monday finish in the history of the competition.

Definitions

mr money bagsMonday Business Edition

Economics isn’t much of a science.

Sure they try and dress it up with the maths and produce the pretty graph, but in the end the letters are all just acronyms designed to make words look like numbers and somehow impart the dignity of 2 + 2 = 4 to arguments considerably more specious (a hard currency pun).

Take for instance Keynesian.  Today it’s being thrown as a slur and adopted to include almost anything that’s not related to Monetary policy and a Friedmanite/Greenspan fantasy land where government employment doesn’t produce anything of value (otherwise Capitalists would be doing it, by definition) and the concept of ‘public good’ is unknown.

The 2 leading schools of economic thought in the United States are the Freshwater School centered on the University of Chicago where Friedman taught and the Saltwater School which would be every one else.  Krugman has an essential summary.

But they’re both Monetarist Schools and Monetary Policy prescriptions don’t work when you have zero interest rates and incredible liquidity but your problems are under capacity utilization, over supply, and lack of aggregate demand.  You can’t push a string.

Then you need Fiscal Policy and deficits don’t matter.  We’ve grown or devalued our way out of every deficit we’ve ever had, our Currency is Sovereign (when I pay off my T-Bills I give you nice shiny greenbacks and tell you they taste great in a vinagrette), and who gives a rat’s ass about devaluation anyway, the only people it hurts are bankers and billionaires and they both deserve a spanking (some prefer the haircut metaphor).

My point about labels is this-  my views about macro economics, political economy, are what is properly called Neo-Classical Synthesis believe it or not because they’re grounded in Samuelson’s seminal 1948 Economics.  Krugman, DeLong, Stiglitz, Reich, etc. get called Neo Keyesians but that’s not what they’re really about, they’re all Samuelson Neo-Classicists.  Part of the problem with academic debate is that there has to be some otherwise you might lose your phony baloney job or, even worse, go out and teach some smelly undergraduates instead of sitting in your office writing papers.

Neo Liberal is an entirely different philosophy, but because lazy and stupid media people think anything new is Neo even though they live in the matrix and Liberal is Goldwater and Nixon, that one gets thrown around a lot too.

Krugman

The point is that we have perfectly good models  for thinking about the state we’re in – models in which we can describe what all the agents are doing and why, models that have done a very good job in terms of predicting how events have proceeded. Moving back and forth between simple new Keynesian models and their IS-LM translations, it was straightforward to show that a huge expansion in the monetary base could and would go along with continuing disinflation, that massive government borrowing would not cause an interest rate spike, and so on.

So what’s wrong with my “one model to rule them all”? Well, it doesn’t easily translate into anything that looks like monetarism – for a good reason: when short-term interest rates are near zero, the distinction between the monetary base, which the central bank controls, and the much broader class of safe short term assets, which it doesn’t, more or less vanishes. That’s not a bug, it’s a feature; it says that when you’re in a liquidity trap, thinking in terms of the supply and demand for money is just not a helpful way to approach the issues.

More Krugman

But maybe this is an opportunity to reiterate a point I try to make now and then: economics is not a morality play. It’s not a happy story in which virtue is rewarded and vice punished. The market economy is a system for organizing activity – a pretty good system most of the time, though not always – with no special moral significance. The rich don’t necessarily deserve their wealth, and the poor certainly don’t deserve their poverty; nonetheless, we accept a system with considerable inequality because systems without any inequality don’t work. And before the trolls jump in to say aha, Krugman concedes the truth of supply-side economics, that’s not an argument against progressive taxation and the welfare state; it’s just an argument that says that there are limits. Cuba doesn’t work; Sweden works pretty well.

And when we’re experiencing depression economics, by which I mean a situation in which it’s hard to create sufficient demand to achieve full employment – mainly because short-term interest rates are up against the zero lower bound – the essentially amoral nature of economics becomes even more acute. As I’ve said repeatedly, this is a situation in which virtue becomes vice and prudence is folly; what we need above all is for someone to spend more, even if the spending isn’t particularly wise.

The trouble in practice is that conventional modes of thought tend to prevail even when they shouldn’t; in particular, public spending on the scale needed never seems to happen. That’s why Keynes facetiously proposed burying bottles full of cash in coal mines, so people could dig them up again: since any proposal to spend money on things we need got shot down on grounds of prudence and efficiency, he proposed completely pointless spending instead.

Still More Krugman

What I’d say about America now is that we have big problems, very much including too much talent going into financial fiddling, too few people who actually make stuff – actually, I worry as much or more about machinists as I do about scientists and engineers. But that observation has virtually no bearing on high unemployment right now. So I’d hope we can walk and chew gum at the same time, appreciating the structural problems but not letting that understanding get in the way of fighting the immediate jobs crisis.

Robert Reich

My argument is just to opposite. For three decades American consumers managed to maintain demand despite flat real wages. They did this by sending women into paid work, working longer hours, and then borrowing to the hilt. But all these coping mechanisms have come to an end. So it’s only now that we have to face the reality that most Americans have not shared in America’s prosperity.

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