Category Archives: Political Economy

Zombie Zakaria Has Some “Ideas” For You

Affirmative Action, America, Education, Europe, Government, Labor, Multiculturalism, Outsourcing, Political Economy, Science, Technology

Fareed Zakaria: is there anyone more inane and wishy-washy than he? Zombie Zakaria’s “Restoring the American Dream” presentation is in the tradition you’ve come to expect from this CNN pundit.

Thus, Fareed vows to “bring you solutions” to “the hollowing out of the middle class” by growing the state’s role in R & D, for, as he concludes, “Almost all of the science and technology research that we take for granted now came out of the Defense Department spending post World War II.”

But surely, and logically, we cannot assert that because the DOD (the Department of Defense) gave rise to certain technologies, without it these inventions would not exist, as ZZ claims? It might be the case that sans state intervention, there would be even more innovation than with it.

This guy’s “ideas” are festooned with similar falsehoods.

Another of ZZ’s lessons comes courtesy of the super-productive German workforce.

“Despite some of the highest wages in the world, strong unions, lots of regulation, Germany has maintained a very powerful manufacturing base, employing millions,” ZZ opined. “It has held in good stead during this economic crisis. Germany’s unemployment rate has actually fallen for the past 15 months straight, an unbelievable record in this economic climate.”

As ZZ narrated the above passage, images of industrious German factory workers flashed on the screen, and were contrasted with the long lines of the unemployed in America. Guess what the American assembly and unemployment lines look like? You are right: By comparison, the German workforce so famous for its industry looked relatively homogeneous.

Still, ZZ hopes to apply efficiencies learned from the German cohort to America’s increasingly third-world, imported, underclass of workers. (“The United States,” we are told, “now ranks 52nd in the world in quality of science and math education.” It used to have “very high levels of performance in math and science.” What happened other than suffocating unionization in education, third-world immigration, and affirmative action?)

As Fareed and his well-to-do, high-achieving (indubitably high IQ) guests conclude, and I paraphrase, opportunities are indeed boundless if somebody has the smarts and the motivation; everybody can be the designer of an iPod or a programmer at Google; this essentially, is not a rarified group. Any one can get to be at “the top end of America.”

ZZ’s smart panel, which can never be called an interest group plumping for government/taxpayer subsidies (no never!), included Eric Schmidt, CEO of Google; Muhtar Kent, chairman and CEO of Coca-Cola; Lou Gerstner, who has run R.J. Reynolds, American Express and IBM; and Klaus Kleinfeld, CEO of Alcoa, the aluminum giant.

All were agreed that laborers are interchangeable in as much as potential is concerned, and if given the right conditions by government.

I have advocated in my writings for “a natural shift from a credit-fueled, consumption-based economy, to one founded on savings, investment and production.”

ZZ favors only a shift from consumption to investment; massive federal-government investment.

Chris Matthews Lies: The Best Minds Are Not Keynesians

Economy, Elections, Journalism, Media, Political Economy

Chris Matthews has been repeating this lie almost every week in this ramp-up to the mid-term elections:

“This president came into office facing the worst economic outlook since the 1930s. He took action, bold action, the action prescribed by the best economic minds – following the best thinking there is in economics ‘since’ the 1930s.

First, even before taking office, he backed up his predecessor in preventing a major collapse of the financial industry. Everyone involved said it ‘had’ to be done to avoid catastrophe – the destruction of our country’s financial spine.

Second, he took the action – again boldly – to powerfully offset the white-knuckle drop in consumer spending and business investment. If he hadn’t, no one – including his worst critics – would have any idea what would have befallen us. We can argue about the name it was given – the stimulus bill – but the creation of this great boost in economic demand for goods and services as critical break on what was widely seen as an economic free-fall.”

Nonsense on stilts. And what a propagandist Chris is.

I’ll quote this blog, from 2009, on the so-call Keynesian consensus: “The Royal ‘We’ is unwarranted; and it’s not only me.

The following statement was signed by more than 200 academic economists, and posted by the Cato Institute. The Wall Street Journal buried the statement among a list of economists touting the stimulus package–and the “principle” of printing and borrowing the country out of a depression:

“Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s ‘lost decade’ in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.”

“11 Long-Term Trends That Are Absolutely Destroying The U.S. Economy”

Business, Debt, Economy, Labor, Outsourcing, Political Economy

The Business Insider’s list of “Long-Term Trends That Are Absolutely Destroying The U.S. Economy” should form the sub-headings issuing from an overarching main causal agent: The State, its onerous regulations, and its mint. Over the decades, the Federal Reserve Bank, with State imprimatur, has debauched the currency and it manipulates interest rates so that the economy can never self-regulate.

In any event, The Business Insider may, at times, confuse cause with consequence, but, at least, it has looked beyond short-term trends; in itself a break from the trend.

See what you think (and do follow the hyperlinks before you accuse me of being remiss):

Long-Term Trend #1: The Deindustrialization Of America.
Long-Term Trend #2: The Exploding U.S. Trade Deficit
Long-Term Trend #3: The Shrinking Middle Class
Long-Term Trend #4: The Growing Size Of The U.S. Government
Long-Term Trend #5: The Constantly Growing U.S. National Debt
Long-Term Trend #6: The Ongoing Devaluation Of The U.S. Dollar
Long-Term Trend #7: The Derivatives Bubble
Long-Term Trend #8: The Health Care Industry
Long-Term Trend #9: Financial Power Is Becoming Concentrated In Fewer And Fewer Hands
Long-Term Trend #10: Rampant Corruption On Wall Street
Long-Term Trend #11: The Growing Retirement Crisis That Threatens To Bankrupt America

See the details HERE.

"11 Long-Term Trends That Are Absolutely Destroying The U.S. Economy"

Business, Debt, Labor, Outsourcing, Political Economy

The Business Insider’s list of “Long-Term Trends That Are Absolutely Destroying The U.S. Economy” should form the sub-headings issuing from an overarching main causal agent: The State, its onerous regulations, and its mint. Over the decades, the Federal Reserve Bank, with State imprimatur, has debauched the currency and it manipulates interest rates so that the economy can never self-regulate.

In any event, The Business Insider may, at times, confuse cause with consequence, but, at least, it has looked beyond short-term trends; in itself a break from the trend.

See what you think (and do follow the hyperlinks before you accuse me of being remiss):

Long-Term Trend #1: The Deindustrialization Of America.
Long-Term Trend #2: The Exploding U.S. Trade Deficit
Long-Term Trend #3: The Shrinking Middle Class
Long-Term Trend #4: The Growing Size Of The U.S. Government
Long-Term Trend #5: The Constantly Growing U.S. National Debt
Long-Term Trend #6: The Ongoing Devaluation Of The U.S. Dollar
Long-Term Trend #7: The Derivatives Bubble
Long-Term Trend #8: The Health Care Industry
Long-Term Trend #9: Financial Power Is Becoming Concentrated In Fewer And Fewer Hands
Long-Term Trend #10: Rampant Corruption On Wall Street
Long-Term Trend #11: The Growing Retirement Crisis That Threatens To Bankrupt America

See the details HERE.