Thursday, July 28, 2011

Michael Hoexter

http://www.futurelab.net/tags/Michael-Hoexter


Michael Hoexter

http://www.futurelab.net/company/people/michael_hoexter



  • Occupation:  I work in the marketing of energy efficient products and services and renewable energy in California
  • Organisation: Freelance
Profile
  • I’m a LEED-AP, have a background in psychology (Ph.D. from Michigan) with a focus on linguistics and semiotics, software development and sales.
  • My Green Thoughts blog and site, is a place to read about and discuss issues related to clean energy policy, the marketing and selling of greener products and services as well as the technical issues that impact the market.
Passionate about: Seeing both the reasons why people don’t do “the right thing” as well as why they do.

About Me-michael hoexter

http://www.zimbio.com/Marketing/articles/6y-8YRzp_DT/About+Me+michael+hoexter


My name is Michael Hoexter and I work in the marketing of energy efficient products and services and renewable energy in California.   I’m a LEED-AP, have a background in psychology (Ph.D. from Michigan), software development and sales. My Green Thoughts blog and site, is a place to read about and discuss issues related to clean energy policy, the marketing and selling of greener products and services as well as the technical issues that impact the market.  My commitment is to connect our language and actions to the scientific, technical, and economic realities of saving the climate that has been so good to us, while rebuilding our economy.
Due to the urgency of the climate crisis, I have been focusing mostly on a concept called the “electron economy” which I have renamed the “renewable electron economy”. The long series of posts that I have written on the renewable electron economy have started to yield a picture of what a clean energy economy might look like in the not too distant future.
I have seen both sides of environmental issues having been involved in conventional auto sales as well as in green activism. I bring a perspective to green markets that sees both the reasons why people don’t do “the right thing” as well as why they do. I will be blogging more about these issues in the months to come.
Post your ideas about these subjects on my blog or send me an email at michael dot terraverde AT gmail dot com!

Via Libertarianism, Republicans Try to “Off” the Superego

http://politics2100.wordpress.com/2010/10/06/superego/


Freud’s concept of the superego is helpful in understanding what is at stake in the upcoming midterm election and more generally in the American political economy (and in political conflicts in other countries).  Republicans under the influence of libertarianism are attempting to get rid of or weaken our society’s “superego”, our collective conscience, which is often expressed in government laws and regulations.  Democrats are more or less, though often weakly and ambivalently, aligned with and supporting the notion that society needs an “auxiliary external superego” realized in part through government action.  The choice in November is between those who are in some way in touch with moral and social reality and those who are via their professed ideology out of touch with the reality of actually “doing the right thing”..
Egos, Ids, and Superegos
Freud proposed in his later work a theory that has been called the “structural model” of the individual psyche, which is still current in common parlance as a way to describe mental experience and dynamics.  Freud located animalistic drives in the “id” ( das Es = German for “the It”),  Among these drives Freud’s theoretical and clinical focus was on sex and aggression, which were the impulses most troublesome to his neurotic patients; a more inclusive approach than Freud’s would include other drives like thirst, hunger and thermo-regulation.  In any case, the id is supposed to operate according to the pleasure principle, the notion that gratification must be instantaneous, either via the supply of real satisfactions or imaginary ones, as in fantasy.  The “ego” (das Ich = the “I”) contains most of the central executive functions of the personality, including calculative rationality, and abides by the “reality principle”, which understands the difference between wish and the fulfillment of wish, the dream and the external world outside.  The ego endeavors to organize life and the environment so as to fulfill the wishes of the id in a realistic manner.  Our popular use of the word “ego” for “exaggerated self-regard” is not part of the way the term is used by Freud and subsequent psychoanalysts; more recent psychoanalysts have formulate theories that specifically address these narcissistic issues.
The superego (das Ueberich = the “over-I”) is thought to be the internalized mandates of society and significant others in the early life of a child (parents, etc.), the should’s and shouldn’ts of life.  The superego is supposed to enforce taboos and inspire guilt as well as present a picture of the ideal self, alternating rewarding and punishing the ego and id for conformance to ideals or violations of prohibitions.  Someone who is a psychopath or sociopath is supposed to have a weak or non-existent superego; they act to satisfy their own impulses without regard to what society mandates.  While the “superego” sounds like the executive function of the personality it is dependent upon the ego to obey its mandates and work towards its ideals.
While Freud and Freudians after him thought that a complete set of this psychological “furniture” was installed in early life inside individuals, this model of the psyche overlooks the contribution of the environment to actual behavior.  For instance people are much more likely to abide by laws or “do the right thing” if they know that they will be observed or they have continual modeling of good behavior by people they identify with (giving to charity if others give to charity, etc.).  Thus a social environment functions as an “external superego” (most obviously policemen, peer groups, courts, group bylaws and codes of conduct) to supplement the internal superego; psychoanalysts since Freud unfortunately have talked as though such an external help for the superego is the exception rather than the rule.
Psychoanalytic Culture, Consumer Society, and the Superego
Freud and subsequent psychoanalysts were often faced with the problem of patients who were too inhibited and had unreasonable ideas and assumptions about sexuality and aggression.  Many of these patients had “overly harsh” superegos that choked the flow of their more primitive drives and the creativity of their egos, which blocked the process by which psychoanalysts hoped to turn their misery into at least “ordinary unhappiness”.  These superegos were, of course, co-produced and reinforced by a late-19th and early 20thCentury European bourgeois culture that saw civilization as a means of purifying human beings of basic animal drives and human foibles.  Psychoanalysts didn’t intend to dismantle their patients’ superegos but wanted to loosen the hold of the superego over the ego and id, at least for the purpose of exploring what was “in” these more socially unacceptable portions of the psyche.  Rather than being observed and judged by a harsh superego, for some psychoanalysts the therapeutic action of psychoanalysis was supposed to strengthen an “observing ego” that would remain more neutral with regard to both the animalistic drives of the id as well as the strictures of and idealized images within the superego.
Outside the consulting room, psychoanalysis in the early and mid-20th Century had enormous cultural impacts.  Freud, especially in the US, ascended to the status of a guru in matters of the mind and, in particular, his views on the sexual aspects of our motivations and psyche captured the public imagination.  As Adam Curtis, documents in his great “Century of the Self” documentary, Freud’s nephew Edward Bernays popularized his uncle’s theories as an intellectual basis for the new field of public relations.  Advertisers and marketers started to use Freud’s theories in efforts to persuade consumers to buy their products.
With or without the help of psychoanalytic ideas, manufacturers of consumer products required potential customers to have different “selves” than their parents or grandparents.  Rather than worry about saving for the future, the new consumers needed to spend more to buy more goods and sustain the consumer good-based economy (China is now facing a similar transition in its psychological and economic culture).  To motivate consumer behavior, advertisers had to send messages that loosened, among other things, the grip of the traditional superego that warned against the “dangerous” drives originating in the id.  While sexual messages in advertising have been used to attract buyers, a more general “why not” attitude towards almost all drives has weakened or altered the demands of the superego. Spurred by a new mass culture and advertising, a new consumer ethic emerged in the US in  the 1920’s, was temporarily curtailed by the Great Depression and the Second World War, but continued its rapid expansion in the 1950’s and 60’s in the US, Western Europe, and increasingly, in almost every part of the world.
Economics and the Superego
Almost 150 years before Freud, Adam Smith’s formulation of classical economics set in motion a dynamic within political economy, which compartmentalized moral concerns from economic self-interest, implying that “help” for the individual superego in the form of government was superfluous.  In Wealth of Nations, Smith posited that the ideal economic actor who served the greatest good was one who was focused primarily on his own self-interest and not that of others.  Additionally these actors were thought to tend towards virtues like prudence and other conservative economic behaviors that were self-preservative but not focused on the welfare of others.  Despite this, in his earlier book, The Theory of the Moral Sentiments, Smith assumes that people should act in accordance with their conscience and sympathy for others.   Smith there started a tradition in economics which assumes adequately moral behavior by individual economic actors while suggesting that an external superego in the form of government intervention was unnecessary or deleterious to economic development.
Neoclassical economics, which has come to dominate economics over the past century, adopted Smith’s idealized picture of the market and the purified pursuit of self interest by individuals.  Neoclassical economists have thought themselves to be value-neutral scientists by associated themselves with the field theory of late 19th century physics as well as extensive use of mathematical formalisms.  With the contribution of Keynes, who subtly re-introduced some moral concerns into economics, post-Depression economics integrated aspects of his work into what came to be called the “neoclassical synthesis” promoted by Paul Samuelson.  In this synthesis, the neoclassical view of largely unsupervised self-interested market actors was balanced by a macro-economic authority, usually government or central banks that would guide the economic system as a whole via monetary policy or investment in public goods.  The patchwork approach of the neoclassical synthesis that attempted to unite micro-and macro-economics has fallen apart as disagreements have emerged as to the role of self interest and the need via government for an “external superego” in the economy.
In the past 30 years, a new laissez faire doctrine called neoliberalism or market fundamentalism has emerged to create a simplified and politicized interpretation of economics that is based on neoclassical assumptions about markets and purely self-interested behavior.  Urged on by the old Keynes opponent Friedrich von Hayek and members of the conservative “Austrian” school, neoliberalism asserts that unregulated markets create and distribute goods and services optimally.  The management of the economy by government actors was almost always inefficient or the “road to serfdom”, according to Hayek, Friedman and other leading lights of neoliberalism.  Neoliberal economists assumed, following Smith’s assumptions in Wealth of Nations, that economic actors would have an adequately internalized superego enabling fair dealing and the rough equivalent of justice in the marketplace.  Libertarianism is the political philosophy that animates neoliberalism.
Assuming the Best of the Individual, the Worst of Society
The libertarian/neoliberal economic “story” suggests that individuals are for the most part in command of themselves and do not require an external manager or “governor” like government to support their decisions or to keep them in line.   Long-time Federal Reserve Chair Alan Greenspan was apparently in the hold of this ideology while chairman of the US central bank.  By contrast, large-scale society and the large government that it requires is considered by libertarians to be relatively speaking a “den of iniquity”.  The function of government to aid individuals in making good decisions or to discourage them from making harmful decisions is viewed to be superfluous or entirely unhealthy.
Libertarians, and with them the current Republican Party, then naturalize or take to be universal those failures of large scale government that have occurred historically like the atrocities associated with Communism or fascism, while overlooking the failures of too little government that are apparent throughout history.  The decentralized chaos of failed states in Africa, the uncontrolled gyrations of unregulated markets, and the decay that comes from poor management of large scale societies like the US are either ignored or used as confirmation of the “fallen” nature of society.
As I have noted in an earlier post, libertarians are only too willing to consume the benefits that come from living in a complex society with a large diverse population but at the same time to deny and dispute the costs of such society.  In this case, “goods” are thought to inhere in select individuals, part of the “charmed circle” of the wealthy and connected, and “bads” are externalized and projected onto others, preferably the less fortunate or powerful.  The crudity and exploitive nature of this attitude escapes the awareness of adherents to libertarian ideology.  Libertarians assume that they or the people they admire have already achieved an “ideal” state to which everybody should aspire.  The ideal libertarian society consists of an additive process by which these ideal individuals are collected together and the less than ideal are expelled or punished.
Thus it is understandable, given the assumption of nearly perfected individuals or self-perfecting individuals that libertarians reject the idea that government or another agency would provide support for individuals’ superegos, i.e. their “better selves”.  People are already supposed to know right and wrong and to give those people help in recognizing right and wrong is an “insult” to the perfected state of these individuals or the self-perfecting process that will allow the “cream” to rise to the top.
Fraud:  Reality Intrudes on the Libertarian Ideal
While most somewhat worldly libertarians would agree that “blue collar” criminality requires some form of publicly funded police force, libertarians are largely blind to various forms of “white-collar” crime including fraud.  Because libertarians generally believe that individual economic gain is almost without exception self-justifying and market transactions are by their very nature transparent, fraudulent ways of doing business are largely blotted out of their consciousness.  Fraud, which is often addressed only by government, undermines the idealized view of markets that libertarians promote.
Most obviously, the recent financial crisis was spurred on by widespread fraud in the labeling of securities, as well as various forms of double-dealing on the part of financial intermediaries like investment banks.  The pervasive fraudulent activity was such that it has passed largely without much public outrage, largely because the libertarian “story” about markets has penetrated so deeply into the public’s perceptions of the relationship of business and government.  Within this narrative “of course” these actors would attempt to maximize their gains by whatever means necessary.  In the US, there are a few voices, like that of William Black of the University of Missouri at Kansas City, who have continually pointed out the importance of fraud to stability of the economic system.  Additionally, Steve Keen has pointed out how integral “Ponzi finance” is in the last stages of the inflation of asset bubbles, like that of the US housing market.
If such activity is recognized as fraud, the only remedy is stricter controls on business activity via laws and regulations.  As this is “creeping socialism” or “Communism” to libertarians, they deny the need for such controls as well as the existence of, or importance of, such systemic fraud.
The Rule of Sociopaths:  The Dark Side of the Libertarian Ideal
Sociopaths are a subset of people that by some combination of their early experience (nurture) and genetic factors (nature) have a weak or non-existent superego;  they are predators on other people.  As libertarianism holds people to an entirely unrealistic ideal of morality (entirely self-managed and self-contained ethical perfection) in an ideal society largely unorganized by government, libertarianism encourages in effect sociopathic behavior.  Effective morality requires the help of other people, including government rules and enforcement agencies.  Libertarians seem to say, like the con man, “trust me” with little means to determine whether someone is trustworthy; there are no regulatory standards to determine who is lying and who is telling the truth.  In starting with unrealistic premises about moral perfectionism and people’s moral capacity and lobbying hard against government’s role in supporting right behavior, libertarianism has encouraged systematic immorality.

“Augustinian” Theology and the Republican/Libertarian Denial of Society

http://politics2100.wordpress.com/2010/10/12/theology/


In the foregoing posts, I chronicle how libertarian ideology has led the Republican Party astray, misleading the American public about the real problems and solutions for our common challenges.  The resurgence of libertarian ideology started during the late 1970’s and the 1980’s when the post-WWII consensus about how advanced industrial societies should be governed came under question after the Vietnam War, the 1970’s energy crisis, and bouts of inflation.  One of the more important Transatlantic figures in the resurgent right was British Prime Minister Margaret Thatcher, whose electoral victory in 1979 showed the way for Ronald Reagan’s electoral win in 1980.  As a conservative MP of a new school, Thatcher was a student of the founder of neo-liberalism, Friedrich von Hayek, who attempted to create an economics based almost exclusively upon the action of individuals in the marketplace.  Thatcher’s 1987 statement “that there is no such thing as society..only individuals and families” is an almost programmatic expression of Hayek’s beliefs and economic prescriptions.
While Thatcher apparently tried to back away from this statement in her memoirs, the absurdity of it has not been fully exposed and explored, given that at the time it was uttered, neoliberalism was in the ascendant and has continued to have an inordinate influence over political discourse in all parts of the political spectrum.   Blindness to or denial of society runs throughout the libertarian/neoliberal philosophy; economic policy prescriptions from most political groupings to this day are marked by the avoidance of viewing society as a system or whole.  Though President Obama is nominally from a political tradition that believes in government as an integrative force in society, his utterances in his first years in office have tended to support or be only mildly critical of this ongoing denial of how society and the economy function as a system; he has instituted policies that support social systems in a manner that is, to the say the least, subtle and seems half-hearted.  He and the Democrats are now harvesting the consequences of their neglect of these issues.
On the other side of the aisle in American politics, an almost unanimous consensus supports a continuing denial of society.  Even a supposedly moderate Republican, like NJ Governor Chris Christie has been swept up this reflexive denial of the need for government to address systemic failures and gaps.
“Augustinian” Neo-classical Economists and Right-wingers
In his provocative book, “Economics as Religion”, Robert H Nelson analyzes the division of economics into schools as a function of economics being not a science but a theological enterprise within which there are various schools.  While I disagree with some of Nelson’s conclusions and analysis, he presents an interesting thesis for explaining how trends in economics have reduced the focus of certain schools of economics to the sum of the fates of individual economic actors.  In discussing the influential conservative Chicago School of economists, Nelson believes that their relentless preference for individual solutions or society as composed of individual corporations and consumers is analogous to or even originates in a theological preference that emerged in the influential early Christian theologian/philosopher Augustine of Hippo.  As Nelson believes that all economics has a theological component, he is not branding the Chicago school with this theological label.  I believe Nelson’s argument would be stronger and more interesting if he had unpacked more what “theological” means to him, including an examination of philosophical and metaethical issues that economics raises, independent of religion.
Despite these reservations, Nelson has opened up an interesting line of inquiry.  Nelson points out that Augustinian theology, as set out in City of God, focuses on the salvation of individual souls rather than the restoration of the real physical community of people.  Augustine apparently wrote City of God in response to Romans’ questioning of the official Christian religion of the Roman Empire after the sack of Rome by the Visigoths in 410.   Christianity became a tolerated then the official religion of the Western Roman Empire after the Emperor Constantine converted to Christianity almost 100 years before Augustine, though the process of Christianization was still ongoing at the time of Augustine.  Some Romans blamed the abandonment of the old Roman gods for the weakening empire.  A convert to Christianity himself, Augustine argued back that what mattered was not the fallen “City of Man” (worldly society) but the ascension of individuals to the City of God.  I am not an expert on Christian theology but am recapitulating here Nelson’s argument.
In retrospect, Augustine’s focus on individual conversion and salvation meshes well with the time in which he lived where secular authorities (Roman emperors and the Roman army) were losing control of the Roman Empire and gradually, over a period of centuries, the Roman Catholic Church would become the most powerful institution in Europe.  However, at the time, Augustine apparently thought of himself as contributing to the governance of Christian Rome, though thereby condemning the “City of Man”.  Augustine’s preference for spiritual over worldly matters has an interesting counterpoint or source in his struggles with his own lustful behavior, including having a mistress.
Nelson’s hypothesis is that the focus on individual economic “salvation” by economists echoes Augustine’s approach to Christianity.  The Chicago School in particular has emphasized how economics should be viewed as a market struggle between individual economic actors rather than the regulation of a large-scale composite social system with its own qualities.  The dismissal by the Chicago School and other anti-Keynesians of the need by government to manage, among other things aggregate demand, echoes to some degree Augustine’s dismissal of the “City of Man” as being intrinsically “fallen” and therefore not worth attending to.
Protestantism, Economics and Individual Salvation
Augustine, though crucial to Roman Catholic theology, was also claimed by a number of founders of Protestant sects, including John Calvin and Martin Luther, as being a close cousin to their efforts to “re-individualize” Christianity.  The focus upon a return to individual experience, reading of the Bible, and faith rather than good works (in the form of payments to the Catholic Church) was part of the experience by which Protestantism gained adherents, in part in protest of corruption within the Roman Church.
Max Weber famously linked the rise of capitalism to what he called the Protestant Ethic, though a recent historical study casts doubt on a direct link between confessional membership and business activity in early modern Europe.
In historical time, the effects of Protestantism, in particular the revival of fundamentalist Protestantism in North America in the last 40 years, would seem to be closer in time and in influence than Augustine’s work, which is claimed by Catholics, Protestants and some secular philosophers as well.  Why Nelson decided to focus on ancient history in the person of Augustine rather than more recent Protestant theology is not clear to me in my first reading of his work.

Inspired by Libertarianism, Republicans and the Tea Party Choose Short-Sighted Greed Over Long-Term Self-Interest

http://politics2100.wordpress.com/2010/10/17/greed/


In this blog, I have been defining the 30 year experiment of the New Right as being largely libertarian with regard to its political appeals, theory of how society works, and attitudes toward government and taxation.  To be fair, I have pointed out that the Republicans’ agenda includes two other potentially conflicting influences, social conservatism and support for an interventionist national security state.  I have chosen libertarianism as the dominant trend of the three in part because it is the most all-inclusive and influential in the area of economic policy and politics.  In this post, I will argue that Republican-libertarian/Tea Party politics and policy are based on short-sighted greed, which is a moral accusation that is extremely obvious yet has not been spoken of as such in the public sphere.
It is surprising that after a monumental economic slump caused in part by Republican pro-greed policy, that the same group committed to short-sighted greed may make substantial electoral gains in November against President Obama and the Democrats.   The Democrats are relatively speaking more committed to our long-term self-interest as a nation, though have made some deeply problematic policy suggestions and political strategy.  They have proposed and passed laws which are cumbersome and sometimes wrong-headed (I’m thinking about the health care bill).  The Democrats have stumbled badly in communicating their intents and commitment to a sustainable American prosperity.  However the Democrats are not so exclusively beholden to irrationality and short-sighted greed as the Republicans who are standing for office or campaigning for re-election.
The substantial imperfections of the Democrats pale in comparison to the callous disregard for the welfare of the American people of the Republican Party, some of whom are now campaigning to return America to the 18th or 19th Centuries.  Recently some “Tea Party” candidates have been campaigning against public education.   For their mistakes, the Democrats deserve to have their feet held to the fire but, even more, the Republicans do not deserve to be rewarded for their insanity and sheer stupidity.  Thus electing Democrats and challenging them in 2012 primaries would send the right message (even challenging the President in a primary makes sense) rather than switching over to the Party that brought us to ruin and doesn’t care.  Though the timidity and cluelessness of some Democrats is maddening, they are not as blind and morally bankrupt as their Republican opponents, in a vast majority of cases.
Providing and Paying for Public Goods
The Republican appeal to short-term greed is nowhere more evident than in the extreme tax phobia that Republicans both foment and play upon.  Over the past 30 years, few politicians have stood up for the benefits paid for, in part, by taxes, reminding the American people that the “pain” of taxes leads to the “gain” of individual and overall social benefits.  It has become political common sense in the US to never appear to have raised taxes.  Multiple factors have led to this impasse which now immobilizes most sitting politicians; proposing a tax has become a stigma away from which politicians run headlong.  The link between a social benefit and payment for it has been broken in the mind of the public, largely due to the promises of a market-based solution for everything that postpones the planned payment for goods and services via raising government revenue.  The fantasy of a market “fairy” that will make the pain of taxes go away has infantilized the American public.  Both Democrats and Republicans have played into this; however, it is Republicans who have promoted an ideology of almost complete tax phobia, where taxes are considered to be a total and complete subtraction from the welfare of society as a whole.
Never Pay for “Other People”
Republicans and the media outlets associated with the Republican/ libertarian ideology (Fox News, business news channels, right-wing talk radio) have now drilled into many people the notion that taxes and other pooled economic resources are an unfair system of paying for “other people”, in particular people who are less fortunate.  There is no conception of “there but for the grace of God go I” or other conceptions about the varying degrees to which people experience fortune and misfortune over their lifespan.  The recent incident involving a fire department in Tennessee not putting out the fire at a house that didn’t pay the voluntary “fire fee” has been cited with approval by right wing pundits as the way society should be organized.  In the Republican/libertarian ideology, every material possession that one has presently or might have in one’s personal dreams of future wealth is supposed to be a personal virtue and attribute; to be deprived of money by taxation means to be deprived of these personal virtues.  There is no sense of a dynamic, interactive economy in this view, only a static collection of goods which is being fought over; in this view, someone else’s gain is always your loss.
Furthermore, in the libertarian/Republican worldview is no conception of the idea that certain goods (public and common goods) are most efficiently paid for via pooled resources with those with more money paying more than those with less.  The progressive taxation system instituted almost 100 years ago is under attack by Republicans and libertarians who feel that this is unfair.  It is difficult not to judge this as the promotion of an ethic of exceedingly narrow self-interest that focuses simply on what one currently has without any notion about how economies function and income is earned, goods and services are produced.  The idea of society having a “commonwealth” which benefits all and enables individual wealth to be enjoyed is an impossibility in the “dog eat dog” world promoted by Republicans.

Rep. Ryan and the Radical Republican Right are, like Termites, Eating Away at American Civilization

http://politics2100.wordpress.com/2011/05/03/termiteinfestation/


I am not someone who ordinarily compares my fellow human being to insect pests.  However, in using this, for me, extreme metaphor, I want to counteract a trend in the media and among the Democrats, of dignifying the extreme Republican right-wing and their ideas with respectful attention and even praise.  I realize that there are right wing crazies on Fox News who have used far worse labels with far more abandon; with this insect metaphor I may be inviting comparison with these people for whom I have almost nothing but contempt.  I can say in my “defense” that I am stopping short of calling them termites, saying that they are “like” termites; there is hope for them that they could repent of their termite-like ways.
Eaten away from inside...this is not the America we want to live in.
Now to the gist:  Why are Rep. Ryan and the majority of the Republican caucus on Capitol Hill (as well as many Republican state lawmakers such as Gov. Scott Walker of Wisconsin) “like termites”?   The “termite” label is not simply a put-down but a fairly accurate condensation of what is going on currently in American politics and also, alarmingly, elsewhere.  The Republican “termite” ideology has also inspired “termite-like” actions in Democrats who have seen in this destructive behavior a virtue that is wrong-headed from both an ethical and an economic perspective.
The American economic and social system that during the 20th Century produced great wealth and success for the nation as a whole and for American individuals was built by a combination of private initiative and government efforts.  It was built, in some respects like a building is built, though it is an enormous, complex and unfinished building that is always in the process of being built or renovated.  Some of the goods and services necessary for that building to continue to be constructed or to even remain standing are supplied by the government.  Other goods and services are provided by a combination of the efforts of private and non-profit actors.  The latter could be called “the market” plus the voluntary sector.
While both parties unfortunately too slavishly serve the interests of their biggest political donors, in particular large corporate interests and the wealthy, there is a still a critical difference between the two parties:  the Republicans are operating within the fiction that much of the work that government has done and does, especially for the domestic economy, is unnecessary.  By contrast, the Democrats attempt to be defenders of the notion that government delivers critical services that keep the “building” of American civilization standing, albeit, for the most part, including the President, they are very weak defenders of this idea.  Lately Democrats have fallen under the sway of Republican ideology that government is optional and a hindrance to the further development of American civilization.
Under current Republican ideology and the intimidating influence it has had on Democrats, government projects like the Hoover Dam are almost inconceivable.
The Republican Right, since Ronald Reagan’s triumph in 1980 has campaigned vigorously to undermine the positive role of government in building and maintaining American society, even as they have sought in private to maintain the benefits of government for their political patrons and some key constituencies.   Decrying government in general, they exempt farmers and farm subsidies, military contractors and, defense spending, and the actual bailing out of their political patrons while decrying the idea of “bailouts”.  While both political parties show some breath-taking duplicity in their political behavior, especially as regards the interests of large donors, the Republicans are almost breathtakingly consistent in the falsity of their politics, which sound populist yet benefit almost exclusively the most privileged.
The post-1980 American Right fundamentally misrecognizes the tasks involved in maintaining and growing a civilization in which they and we want to live.  The radical Republican Right does not recognize that government provides the “glue” of society and the economy.  Caught up in the juvenile conception that markets alone create modern economies, the Republicans have campaigned against the public provision of goods that enable private and public enterprises to flourish.  They attack what they don’t understand or don’t want to understand, the many supports and services which make a complex society work and liveable.  Or alternatively they take for granted that which pleases them, ignoring that tax-funding often plays a role in its provision.
Rep. Ryan’s budget proposals, in which for instance Medicare would become a voucher program, are a critical piece in the efforts of the Republican Right to undermine the government-provided aspect of American prosperity, in this case social insurance that the private sector is unable and unwilling to provide.  Additionally, his Republican counterparts in various statehouses and governor’s mansions are trying in an equal manner to gut the protections offered by government which the private sector cannot profitably provide.  The resurgence of the Republican Right in 2009 and 2010 has yielded some of the most extreme and far-reaching efforts of the Right to undermine “the hand that fed them (and us)” as American prosperity would be unthinkable without the efforts of government throughout the years to protect and to serve the American public.  Risk takers and entrepreneurs are exactly the people that need a social safety net to “catch them when they fall”; few people are willing to gamble if one of the likely outcomes is illness and death.
Detailed analyses of the utter cluelessness and immorality of Ryan’s “plans” can be found in numerous places, including pieces by Paul Krugman, Ezra Klein, Mark Thoma, and others.
The thin rationale for these attacks is that we must have fiscal austerity now despite most economic indicators suggesting that austerity now will only further damage the economy.   Alarmingly, supposedly “responsible” centrist Democrats have bought the austerity line as conceived by Republicans ignoring the good sense of most well-grounded economic analyses of the current macroeconomic situation.  There is now a race to show who is the most virtuous cost cutter at one of the worst times for the real economy in which most Americans live.
Tragically, we are facing with climate change an irreversible degradation of the earth’s climate for us and co-evolved species.  Additionally we are rapidly exhausting irreplaceable fossil fuels upon which most of economy is based.  To combat either crisis it would be necessary for many governments to be able to spend on deficit to build clean energy infrastructure.  However the rage for austerity pushes likely programs in this area to the furthest back burner
Haunted by her early experience in Soviet Russia, Ayn Rand believed that selfishness was the only guide for human behavior, praising at one point the amorality of a serial killer. Her overblown novels have had an inordinate influence on the current political Right who would do better to read the entirety of Adam Smith's "Wealth of Nations", "Theory of the Moral Sentiments" and more importantly John Maynard Keynes's "General Theory" instead.
Republicans’ suggestions in these areas are based not on reasoned analysis based on fact but on premises often fashioned from whole cloth woven by the novelist Ayn Rand.  One of the more laughable ideas put forward by Ryan and his crew is that older people will be able to buy insurance on the private market by use of these Medicare vouchers.  This notion displays such an astounding degree of ignorance or presumed ignorance by the American people about how the insurance industry works.  Insurers cannot make money by providing older people with private health insurance without government guarantees, a result which a simple glance at actuarial statistics will reveal.  Ryan and his crew, supposedly champions of business, display that they don’t know the first thing about business.  In this and other proposals, Republicans are building “air castles” based on faulty or fallacious analysis while undermining the real edifice that supports the well-being of most Americans.
In this, then, the Republicans are like termites, eating away at the real supports of American prosperity and future development, while providing no new “structure” in which most Americans could actually live.  Like some termites, they build their own “nest” that is appropriate for them and few others, often out of the scraps of what they have eaten.   Like termites they don’t “care” about the damage they are doing, feeling that they themselves are taken care of or will be taken care of, by short-sighted private interests that fund them and erroneously believe that government undermines private wealth.  Like termites, they are creatures of short-sighted drives rather than long-term perspective and careful analysis.
To combat this “termite infestation” in government, the American people and their political representatives of good will need to recommit themselves to those aspects of government that hold together our society.   Also they need to expose without mercy the cruelty and foolishness of the Republican plans to cut government services.  This includes spending on social insurance and vital infrastructure with, in downturns and in the face of existential threats, temporary disregard for incurring budget deficits.  Spending on education and even the arts is all part of the vital work of government in creating a civilization that is well worth living in Also in the short term and more so in the longer term, a commitment to fund existing and future government services via fair progressive taxation is absolutely critical.
Otherwise the edifice of American civilization and prosperity will crumble.

The Choice: Social Solidarity (and Deficit Spending) or Social Fragmentation

http://politics2100.wordpress.com/2011/05/15/socialsolidarity/


We, and in particular our government officials, are facing a stark choice in the weeks, months and years to come:  either continue investing in a shared American civilization or engage in a ill-thought-out campaign to withdraw our support from such a common society-wide enterprise with a likely catastrophic outcome.  Over the border to the North and across the Atlantic, a muted version of this conflict is being played out though with a somewhat less stark choice between civilization and chaos.  This is not simply an abstract ethical or spiritual crossroads but one that involves dollars and cents.  There is however a connection between the inner moral and cognitive side of this monumental choice and material investments in infrastructure, capital goods. and service provision.
The immediate occasion for this choice are political and cultural conflicts surrounding public and private debt and how we evaluate and handle our current and future debts.  There are threats by Republicans in Congress not to vote for to raise the debt ceiling of the government, with potential for catastrophic effects for the world economy, while drastic cuts in government programs are demanded.  Republican leaders in Congress have endorsed “the Ryan Plan” that would gut social programs while extending tax cuts for the rich, all in the name of fiscal austerity.  Rep. Ryan’s plan would hardly cut public debt because of its extremely generous tax cuts for the wealthy.
The trend in the last two years is for those on the political Right to make government debt and spending the scapegoat for all that ails the economy and society more generally.  This conveniently distracts the public from the most obvious causes of our current economic woes including the role of large political donors to Republicans and Democrats (primarily the financial industry) in bringing down the economy in 2007-2008.  The current campaign for fiscal austerity is part of the Right’s longer-standing political program to gut social welfare programs, always citing “government spending” as the phantom that haunts our economy and society more generally.   Bond markets, the ultimate “judges” of the solvency of governments, however are showing no diminished appetite for US government debt, even as a crisis in public debt is being declared by these “Very Serious People” among the Republicans, Democrats and in the media.
The real trajectory of public debt and government spending shows that public debt has risen for a host of reasons that are not cited by the critics of spending.  US public debt has gone up because of defense spending initiated in large part by Republican Administrations, and in particular the last Bush Administration. The last few months of the Bush and Obama Administrations have increased deficit spending as a means to compensate for the effects of the financial crash of 2008 which was caused by a huge credit and debt bubble in the private sector.  Our public spending overall is on an upward trajectory because of the incredibly expensive profit-driven medical system that has been built in the United States, as well as increases in medical spending overall due to technological innovation and an aging population.  Making public debt the scapegoat at this moment in time is a deeply irresponsible political move that distracts from a whole host of real factors that both require spending now and also inflate spending now and most importantly in the future.
Deficit spending, and the concomitant public debt it incurs in bond obligations, is a critical tool of the US government, used by almost every Presidential Administration in recent memory, to respond to some perceived or real social or economic need, often when other financial means, such as sufficient tax revenue or private sector initiative or capability, are lacking.   The mania for tax cuts on the Right since the Reagan administration, has forced the federal government to use more deficit spending and to incur more debt, as the government attempts to address both perceived and real needs that no other agency will address.  It then seems to be a very profound irony then that the proponents of fiscal austerity are often exactly those that advocate lowering taxes and government revenue!
The irony is however not really irony, as the ultimate target of many of these politicians and political operatives is not so much a concern about debt and “spending” in general but cutting a large swath of government programs that do not fit the moral and cognitive universe of the Right, as well as cutting taxes, particularly on businesses and the wealthy.  The fallback position of these politicians and pundits is that the private sector will step in and provide services more efficiently than public institutions.  They conveniently leave out of the discussion that private investment only occurs where there is an opportunity to make a profit; many of the services that government offers are in areas of endeavor where profits are either impossible to make or where a profit-making enterprise would substantially degrade the quality of and/or increase the price of the service being offered.  Delivery of medical services and provision of basic health insurance are examples sectors where a system based on profit-making almost always raises costs.  Often, certain types of business in high risk sectors like energy and transport only become profitable when government provides guarantees or other incentives or boundary conditions which enable that endeavor to proceed and generate profit for private actors in the first place.
The uproar manufactured around public debt is even more shockingly immoral when we consider its timing and those who are manufacturing the uproar.  It was not during the bailouts of the financial system in 2008-2009, with costs totaling by some estimates in excess of $4.7 trillion, that the issue of public debt was raised.  Only after the federal government’s rescue of the major financial players, but not of the lowly homeowners with underwater mortgages, were put in motion, that a full-scale campaign counseling fiscal austerity took place.  By appearances, this campaign was an effort to head off or dampen any efforts by the federal government to help ordinary people via deficit spending, after the rich and powerful had already been saved by the government.  Pete Peterson, the Wall Street billionaire and chief architect of the discourse of fiscal austerity and cutting social welfare, has shown himself to have a differential interest in cutting the welfare state rather than cutting corporate welfare, despite professions to the contrary.
Our government is now ringed by challenges that will have far ranging effects for the American people:  massive long-term unemployment, competition for economic leadership and resources from around the world, climate change, depletion of fossil fuels, an aging population, and rising health care costs.  While the radical Republican Right would have the American people believe that private enterprise and unregulated markets will solve any and all problems, there is scant support for their professed blind faith in “markets”:  markets recognize short-term or, in some limited cases, medium term profitability but tend to punish long-term investment horizons.   CEOs are pressed to show profitability to financial markets in every quarter, making large-scale investments increasingly unattractive.  As our society has become more complex and there has been a need for a solid natural and social scientific basis for many decisions, the federal government has been the source of much of the basic research and data collection that enables our society to function and advance, funded either by tax revenue or via deficit spending and bond issue.
With deficit spending the only means to fund the necessary range of government initiatives to address these challenges, as our government has already been starved of tax revenue and the economy is still fragile, we are faced with a choice between addressing problems that will not by themselves “go away” or ignoring these problems and risking their almost inevitable exacerbation.  The latter choice is the default position for Republican political leaders and their sponsors who see no problem in creating an atmosphere of crisis to push through cuts in programs that they feel stand in the way of their plans to cut taxes and privatize vital services.  Some “more”  revenue should be coming to government in the form of taxes on financial transactions and re-instituting the tax levels of the 1990′s but the same politicians who protest deficit spending vehemently oppose taxes that in particular effect the wealthiest.   The deficit scare has become something of an “old trick” over the last several decades:  the journalist Naomi Klein in her famous book “The Shock Doctrine” has documented how multiple times, various conservative elites have used political or military “shocks” and crisis to push through a long-term but unpopular agenda of making government serve narrow corporate or ideologically “right-wing” interests and cutting taxes on the wealthy.
The laughably romanticized view of business leaders and entrepreneurs and the comically villainous views of government and government functions that one finds in the writings of Ayn Rand are unfortunately the staple of current Right wing policy and even “independent” views in the United States. Rand’s “natural aristocracy” of capitalists is a mirror image of Soviet agitprop that promoted almost exactly the reverse: heroic workers versus dastardly capitalists.  Almost everyone is a “parasite” upon the marvelous creativity of heroic individualists in novels such as Atlas Shrugged.  Popular with the current Right wing, the theory of supply side or “trickle down” economics, where taxes are cut on business and upper income groups to stimulate investment and “job creation”, is based more on Rand’s novelistic license rather than social science findings.  Business leaders and the wealthy will be showered with tax cuts in the hopes that they will use their miraculous creativity to create new industries out of whole cloth.  While this vision is terribly flattering to business leaders and the wealthy, some of whom are the patrons of the political Right, the reality of job creation depends much more upon the ability and willingness of ordinary people to buy goods and servicesthan is admitted in this Randian supply-side vision.
Even more alarming and perhaps influential on the leaders of the Right are the apocalyptic attitudes of these heroes of Rand’s novels, who see the option of social withdrawal and destruction as viable alternatives.  Similarly the Tea Party and leaders of the Republicans in the US Congress seem to feel as though it is their mission and in the best interests of their constituents to dismantle government and the economy rather than to refashion it via careful attention to the reality of the world.  Various efforts to defund government, to slash programs without consideration of the consequences, and now the threat not to raise the debt limit, which will have catastrophic impacts on the US and world economies, are signs of the millenarian tendencies within the current Republic right-wing.  The arrogance of the Right’s apres moi le deluge (after me, the floods) attitude has been lost on most mainstream media commentators so far.
Fundamentally, it appears as though the political Right does not comprehend how to keep an American civilization functional and thriving or refuses, simply for its own strategic political gain, to do what needs to be done to keep our complex society in motion.  The Right too casually dismisses the functions of government, including the vital mechanism of deficit financing of government, in its narrow efforts to hold onto and gain more political power for what it believes might (temporarily) benefit the few and the privileged.   The social support and service functions of government, in funding education, health care, help for the needy, for veterans, arts, and scientific research are treated as expendable or easily replaceable by private initiative when this has almost never been the case.   The Right does not recognize that it and its political patrons benefit almost equally from these functions as do its political opponents in the Center and on the Left.  Furthermore the Right does not seem to understand that these functions cannot simply be excised or easily replaced by other institutions.
I wish it were the case that these views were concentrated only in the fanatical core of the Republican Party, the Tea Party and associated activists but this 30 year long campaign of the political Right has created a penumbra of disaffection with government in the broader population and has pulled in Democrats as well.  President Obama’s rather limp and passionless defenses of government as well as attitude of compromise with the radical Republican Right have strengthened the latter to a point where it dominates Washington’s policy agenda despite Democratic control of both the Senate and the Presidency.   Obama’s health care bill, in content a “moderate Republican” offering modeled on Republican Mitt Romney’s Massachusetts healthcare reform, provided fuel for Republicans to mischaracterize the bill without offering the Democratic base much to applaud.
As government has not sufficiently and clearly demonstrated its ability to help ordinary people in a time of great need, disaffection grows and the Right’s strategy of social disinvestment has found fertile ground with some who have given up on government’s ability to hold America together.  The discourse of self-reliance has always had great appeal in America and the Right’s discourse triggers reflexive agreement even as people ask government to “keep its hands off of my Medicare”.  President Obama has been seen to endorse these views himself, comparing the government currently to a family in hard times that needs to cut its budget.  Furthermore a media consensus among “Very Serious People” that budget “discipline” is sensible reinforces these views.
Despite these headwinds, we are faced now with a choice: to ask our government representatives to recognize the realities of our situation and to continue to invest in the joint American enterprise or to allow a process of social splintering and decay to continue.  This means continuing deficit spending to support vital social services on the federal and state levels and vital investment programs to pull us out of the lingering Great Recession.  States who cannot spend on deficit are now slashing services because of the inability of Washington elites to respond to this crisis.  The false deficit crisis is having its intended effect of laming the government.
Furthermore we must ask the wealthiest to pay their share for the stability and cohesive society that enables them to be part of something bigger than themselves.  To be a rich person in Mexico, for instance, is fraught with dangers that the wealthy in America are almost immune from, such as kidnapping.  A functioning social system is part of what makes wealth enjoyable, and funding government through a progressive tax system is the way that has worked for the last 100 years to enable the emergence of a stable middle class and a comfortable environment for the wealthy to enjoy their lives. Even the bond markets, the supposed “opponents” of social spending, are willing to lend us money at low rates.
We are not the self-sufficient individuals that the Right’s propaganda and various American myths suggest; we depend upon each other and upon a functioning government to keep our society and our lives livable or even prosperous.  We will not all simply retire to self-sufficiency to our private farms or estates or, likeRobinson Crusoe, provide for ourselves on a tropical island paradise.  Or, as previously explained, will the tumble of market forces produce the stability and services which our society requires to function well.
The alternative to a government that is “an insurance company with an army” is a society that looks more like “Mad Max” than like a free market utopia.  Increasing income inequality will continue to hollow out the middle class, as more people slip into poverty.  Violence will most probably rise as people see the system as irredeemably rigged against them.  The government will have no way to cushion the inevitable cycles in the market economy, leading to steeper crashes and more frenzied booms.
What is required of us now is a commitment to social solidarity and a functioning, service-providing government, which means in our weakened economic state, a commitment to spend on deficit to prevent the formation of a “lost generation” and build the energy and transport infrastructure for the 21st Century economy.