Behind The Austerity Class That Rules Washington

The Nation:

In September the Committee for a Responsible Federal Budget (CRFB), a bipartisan deficit-hawk group based at the New America Foundation, held a high-profile symposium urging the Congressional "supercommittee" to "go big" and approve a $4 trillion deficit reduction plan over the next decade, which is well beyond its $1.2 trillion mandate. The hearing began with an alarming video of top policy-makers describing the national debt as "the most serious threat that this country has ever had" (Alan Simpson) and "a threat to the whole idea of self-government" (Mitch Daniels). If the debt continues to rise, predicted former New Mexico Senator Pete Domenici, there would be "strikes, riots, who knows what?" A looming fiscal crisis was portrayed as being just around the corner.

The event spotlighted a central paradox in American politics over the past two years: how, in the midst of a massive unemployment crisis--when it's painfully obvious that not enough jobs are being created and the public overwhelmingly wants policy-makers to focus on creating them--did the deficit emerge as the most pressing issue in the country? And why, when the global evidence clearly indicates that austerity measures will raise unemployment and hinder, not accelerate, growth, do advocates of austerity retain such distinction today?

Read the whole story: The Nation

Comments

[ThePeacemakers]

08:32 AM on 10/21/2011

Thomas Frank warned about these very same people in his 2000 book "One Market Under God: Extreme Capitalism, Market Populism and The End of Economic Democracy."

The focus of that book is the 90s when the feel-good propaganda about globalism was on full blast.

That was when the austerity class appeared to be Dr. Jekyl. Now we see Mr. Hyde.

[ProgressivesLoveAmerica]

06:01 PM on 10/20/2011

Most people who've studied economics and are not subject to stubborn adherence to ideological dogma (especially the ideological dogma of the Chicago School or Austrian School of economics) understand that austerity in a down economy is a bad idea.

However, the problem is that the powerful people in charge (Wall Street class) never let a crisis go to waste.

Read Naomi Klein's Disaster Capitalism!

[Ramseytwo]

04:27 PM on 10/20/2011

Those who preach austerity rarely have to worry where the next meal is coming from.

[Robert A Alba]

04:42 PM on 10/20/2011

Exactly. That's why I reject their arguments out of hand.

[Ruthless1]

01:27 PM on 10/20/2011

I think Lincoln sums up our problems

The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies, all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the Bankers in the rear. Of the two, the one at my rear is my greatest foe.. corporations have been enthroned and an era of corruption in high places will follow, and the money powers of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed. Abraham Lincoln

[OxamsRazor]

04:04 PM on 10/20/2011

That Lincoln. What a commie. Clearly.

[Jesster]

02:15 AM on 10/21/2011

Yes, that great REPUBLICAN President, who always put country first and....
oh never mind...

[Si1ver1ock]

08:35 PM on 10/20/2011

A terrfic quote!