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errantgeek -> RE: Why Are Elected Democrats Politicians Shooting and Beating OWSers??? (10/28/2011 12:24:45 PM)
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quote:
ORIGINAL: FirmhandKY
1. The economy takes off, and grows enough to absorb all the "extra money" that was "printed".
This is unlikely with the Obama administration. He and most of the Democrats currently holding office are ideologically opposed to taking the necessary steps to let loose the forces of the free market that could cause such an expansion. I'm not sure "centerist" Republicans would do much better.
2. The Congress and the President agree to very large budget cuts and a real plan to reduce the deficit. I'm talking reducing the federal budget so that we borrow no money, and actually start reducing the amounts that we owe.
This simply isn't going to happen. The Super Committee deal isn't going to work, and the "automatic cuts" are going to be changed. We will continue down the same path.
There is a possibility - if the collapse doesn't happen before then - that if the TEA party and OWS people are able to get officials into office during the next election (Congress and the Presidency) who are willing and able to take major steps in both budget reductions and getting the economy revving again, that we could avoid it.
Unfortunately, if we did, and they did, I think the results of budget cuts would be so politically hard on them, that they would all be replaced the next time there was an election, and most of their reforms would be overturned., thereby putting us right back where we started from.
In the meantime, there are any number of other events, outside of the US, that could cause a major collapse before any such reforms could take strong effect. The problems with the EU, in particular.
I'm pretty pessimistic.
Firm
See, the thing is, the last time the "forces of the free market" were "cut loose"...we ended up with the mortgage crisis and the 2008 economic crisis to begin with.
Prior to that, the various free trade agreements "cut the forces of the free market loose"...and sent most of America's gainful employment opportunities off to BRIC and other RDC's.
Prior to that, the "forces of the free market" were "cut loose"...and we ended up with the S&L crisis.
The problem with "cutting loose the forces of the free market" is that corporations are entirely amoral entities. Along with that is the fact corporations are not citizens, nor do they owe allegiance to any particular country, market, or people. Corporations as profit-generating organizations exist for one reason alone, to generating profit, and that is the only maxim (moral or not) to which corporations, and capitalism in general, is ultimately beholden. Ethics is, quite frankly, an impediment to that and must be enforced upon corporations from without. The 2008 economic crisis, if nothing else, is proof positive that given the opportunity to exploit the financial market, the government and the people to increase profits, business will gleefully do so.
The problem with "cutting loose the forces of the free market" is that to do so means America lowers its taxation levels, wages and business/labor regulations to compete with rapidly-developing countries. This is in a country that despite its wealth and comparatively high standard of living has taxation levels, inequality (social, economic and political), and social services resembling more a third-world kleptocracy than a developed nation. First things first, America simply cannot do that given the high cost and standard of living here without falling into a deflationary spiral, and that would be a bad thing. Second, from an ethical standpoint engaging in what is quite frankly an economic race to the bottom with its ideological enemies and opponents is self-defeating and entirely contrary to the ideological goals and ideals of this country altogether. Third, that's still no guarantee business and labor will return to America, given the competitive nature of the global market.
Really, the question posed by "cutting loose the free market" is whether we turn ourselves, politically, economically and socially, into the very third-world countries we've ideologically opposed for the past half century just to appease business. Personally, I find a "yes" answer to that horrendously unpalatable.
Of course, this entire economic and political system is so firmly entrenched in American society that to root it out will require social and economic upheaval the likes of which Americans have never before seen. Worse than the Great Depression I'd wager. That's why I don't see major, meaningful change happening without a complete economic collapse or civil war.
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