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The Vortex of Stupidity, also known as Washington, DC

4:47 pm in Economy, Government, Jobs by dakine01

A shot of the US Capitol

Just how stupid are they? (Photo: David Flores / Flickr)

I sometimes think that there has to be a crest to the levels of stoopid coming out of Washington, DC but obviously, I am wrong. Just the past two days, Dean Baker at his blog Beat the Press refuted three different pieces of so-called “conventional wisdom” by different members of the Beltway Village Idiots Pundits, Press, and Politicians in good standing.

First up was his having to counter a column from Steven Pearlstein of the Washington Post. Pearlstein says:

Europe is a different story. The bubble years allowed much of Europe to avoid making the kind of structural changes necessary to put its social welfare system on a sustainable fiscal path and reform its labor and product markets. The euro crisis — which is both a banking crisis and a sovereign debt crisis — has forced Europeans to begin addressing those issues.

Baker points out however:

Of course this is completely wrong. The countries with the well developed welfare states, Germany, Denmark, Sweden, the Netherlands are doing fine. The countries that are in crisis, Spain, Greece, Portugal, Ireland, have the least developed welfare states among the older EU countries.

Next up we have a WaPo opinion piece decrying the “looming short fall in public pensions.” Baker points out here:

The pensions are underfunded in part because policymakers would not take seriously those of us who warned that pensions were making overly optimistic assumptions about stock returns before the market crashed. Returns have been well below expectations in the dozen years since the peak of the stock bubble in 2000.

The other reason is that some politicians, like New Jersey Governor Chris Christie, think it is really cute to not make the state’s required contribution to the pension fund. Not surprisingly, if states get into the habit of not contributing to their pension fund, as has been the case in some states, then pension funds will be underfunded.

However, it is more than a bit bizarre that we should therefore ripoff the workers who are counting on these pensions. Suppose state and local governments contract with construction companies for road work or hospitals to treat poor people. If the governments don’t put aside the money to pay these contracts would we then think it makes sense to tell the contractors and hospitals to get lost?

Finally, today Baker goes after NPR and Nariman Behravesh, the chief economist of the forecasting firm IHS Global Insight, who thinks that the biggest problem we face is “the deficit”:

Wow, isn’t that impressive. So Europe, China and the rest of the world will be really impressed if the United States throws even more people out of work as long as it reduces its budget deficit! That’s interesting, had it not been for NPR I never would have known people in the rest of the world thought this way.

As one of the 25 Million plus long term un and underemployed Baker mentions in his post, I would like to quote the inimitable Mr Pierce, “Fck the deficit. People got no jobs. People got no money.

David Dayen at FDL News today (Monday, October 22) covered a survey on the wage gap between federal workers and their private industry counterparts. Not so surprisingly, the public sector workers are paid far less than private sector jobs requiring comparable levels of skills and education:

If you compare organized federal employees, many of whom have college degrees, to unorganized service-sector and retail workers, then yes, you will find higher wages in the public sector. But if you do an apples-to-apples comparison between public employees and their private-sector counterparts in related fields, you will find that the public sector is significantly undervalued.

…snip…

You cannot lump together those who clean up the National Mall and those who work on scientific breakthroughs at the National Institute of Health, compare them to the “average worker,” and come up with a legitimate pay scale for federal employees. You have to go sector by sector and find the appropriate comparison in the private sector. And when you do that work, you see that federal employees are underpaid. This has an impact on millions of hard-working Americans, who are forced to take less than their skills would bring them back in the open market, because of a foolish tendency toward austerity and the demonizing of public workers.

Over these past few years, we’ve all seen many articles decrying the “generous pensions and salaries” of public sector workers, whether teachers, fire fighters, EMTs, or police at local levels or scientists at the NIH, NASA, JPL, EPA, or any other federal agency you wish to name.

My question is why?

One of the themes to emerge from this year’s presidential race has been Mitt Romeny’s “infamous” speech at a private fund raiser last May, calling 47% of the US basically moochers and freeloaders because they don’t pay federal income taxes or they receive some level of federal benefits be it Social Security, VA or the Earned Income Tax Credit (EITC) among others.

But why is it so fashionable to trash people who have earned pensions, earned veterans benefits or Social Security or have used the EITC because of low wages? Shouldn’t we be asking why there are so many people earning such low wages that they don’t even pay a minimum federal income tax? I know for myself, I would dearly love to be earning a salary that would have me paying federal income taxes. Reuters offered this analysis on Friday (October 19):

The number of Americans not owing federal income taxes has been growing since the mid-1980s, and the increase largely stems from expansion of these two tax credits – championed by Republicans from conservative economist Milton Friedman to former President Ronald Reagan.

I want to work in my chosen field, earn a decent wage with benefits and pay my fair share of taxes. Instead, we see the “champions of industry” threatening employees with lay offs should President Obama be re-elected.

Right now, I’m a bit surprised we don’t see more news articles like this one from the AP last Sunday (October 14) about a man attempting to rob a bank of $1 so he could be sent to a Federal Prison. How bad must it be to want to rob a bank so that you can get sent to prison? My guess is the three hots and a cot and health care sounded mighty appealing if the option was starving on the street.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor

Sometimes You Just Have to Respond to the Stoopid

8:15 am in Economy, Government, Uncategorized by dakine01

Now, some folks may have noticed (ha!) that I have not been posting too much these last few months. Those who actually know me understand that I’ve had a very good reason for this. However, I have still continued to surf the news sites each day and keep up with various blogs as well. I figure Mr Pierce does such a fine job eviscerating the Zombie-eyed-granny-starver and so many other idiots, that there really isn’t much I can say and definitely can’t improve on. As well, Dean Baker continues to easily refute the gibberish of so many Beltway Village Idiots Pundits and Politicians, so there’s not much need for my rants.

So, I laugh when I see where someone has butt shot himself while thinking of all the “butt calls” I have received from family and friends. And I get a little sad when I see legislators in my home state embarrassing themselves with their diatribes against teaching evolution. (Note: Gravity is still considered a theory as well, maybe some of these folks complaining about teaching evolution “cuz it’s only a theory” should maybe be invited to test that gravitational theory from the top of the capital building – rhetorically speaking of course.)

But then, I wind up reading something that is so incredibly stupid and disingenuous, that I am moved to take a whack at it on my own. Today, I reached this point when I read this idiocy from Robert Samuelson at the Washington Post:

Judging by the political reaction, you’d think that Paul Ryan’s budget takes a meat ax to Medicare and threatens economic havoc for the elderly. Just the opposite is true: The Ryan budget spares older people from almost any change or sacrifice — and that’s the problem. We have (and, to be fair, this is mainly the doing of Democrats and their intellectual apologists) made those 65 and over into a politically protected class, of which nothing is expected and everything is given.

It is impossible to have an honest debate about the budget — and government’s size and role — unless this changes, because aiding the elderly is now the main thing the federal government does. If you remove that, fearing a backlash from the 50 million or so Social Security and Medicare recipients, you condemn yourself to bad choices: (a) you can’t deal with deficits, which may crowd out productive investment and risk a financial crisis; (b) you must dramatically squeeze the rest of government, including the social safety net, defense and research; or (c) you must raise taxes sharply, which may further slow the economy.

Now, I am admittedly not an economist (thank doG) but by my rough count those two paragraphs contain maybe two semi-factual statements and about ten misstatements, mis-directs, and outright lies.

My first response after reading Samuelson’s gibberish was to rush over to Beat The Press and see if Dean Baker had already taken Samuelson to task. Alas, Dean has been otherwise occupied with taking Casey Mulligan of the NY Times Economix blog and the Washington Post to task for their various misstatements and mis-directs. I imagine he can only deal with just so much stoopid and disingenuousness in one day before reaching his fill.

So if I may quickly:
The Zombie-eyed-granny-starver’s budget and Medicare ‘Plan’ does take a meat ax to Medicare and threatens economic havoc on the elderly (via Kaiser Health News).

Samuelson proclaims that the Ryan budget “…spares older people from almost any change or sacrifice…” (this seems to be an article of perceived Conventional Wisdom among the Villagers and TradMed if this and this are indicators. But the devil as always is in the details as this from Think Progress explains. I would like to add that the attempt at generational war by proclaiming loudly that “55 and above are exempt from the changes” presupposes that those of us older than 55 have no desire to see these programs available to our younger family and friends. Please note, not everyone has an “I’ve got mine, fuck you!” attitude, m’kay?)

I am going to close this without attacking the rest of Samuelson’s gibberish and try to re-store my blood pressure to a more manageable level. But I would like to say that Samuelson continues to act as if the social safety net spending, Social Security, and Medicare have been stand alone problems these last ten years while ignoring the destruction of the US and world economies by the Banksters and fraudsters on Wall St.

[/Harrumph harrumph rant]

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor