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Joseph A. Palermo

Joseph A. Palermo

Posted: December 29, 2009 12:24 PM

A Decade Far Worse Than a "Big Zero" (1999-2009)

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Paul Krugman recently penned an insightful article where he argues that the 1999-2009 decade should be called the "Big Zero" decade because over the course of ten years there was no real job growth or notable "progress" in tackling any of the nation's problems. But Krugman's view, I'm afraid, is overly optimistic. What we had in the 2000s was far, far worse than a "Big Zero." The last ten years have been so miserable for the United States that a "Big Zero" would be an immeasurable improvement compared to what we got. If we could freeze time and move the country back to January 1999 it would be like hitting the jackpot! With all its squandered wealth, wasted lives, despoiled environment, growing inequality, and a Supreme Court stacked to favor corporate power, a "Big Zero" is a distant, unattainable goal.

Ronald Reagan was president from 1981 to 1989, leading many historians and journalists to call the 1980s the "Reagan Era" or the "Age of Reagan." George W. Bush served from 2001 to 2009, but is it fair to us to refer to the 2000s as the "W. Era?" I don't think so.

It was the decade when the country experienced the corporate take-over of everything -- every value, every human interaction, every institution.

Bush stacked the Supreme Court with two relatively young Justices who can be counted on, in perpetuity, to rule against people and in favor of corporations every time their interests clash. He also stuffed the federal judiciary with torture enthusiasts, religious fanatics, and corporate servants.

It was a decade when a new Gilded Age took hold led by Robber Barons far worse and rapacious than any of those associated with the turn of the last century. Goldman Sachs' CEO Lloyd Blankfein, without irony, told the press that his financial behemoth was doing "God's work," just like John D. Rockefeller said over a century ago: "I believe the power to make money is a gift from God."

It was a decade where corporate advertising reached new levels with "word of mouth" marketing and "reality" TV shows that are little more than commercials posing as "television shows."

In November 1999, President Bill Clinton repealed the Glass-Steagall Act by signing the odious Gramm-Leach-Bliley Act that deregulated, once and for all, the financial sector. Clinton, Newt Gingrich, Bob Dole, Alan Greenspan, and Robert Rubin lit the fuse that exploded the American economy ten wretched years later traumatizing the nation and sapping its lifeblood.

There was a "War on Terror" and "video news releases" to manipulate the public. In the past ten years the nation's two dominant political parties finally merged to represent essentially the same corporate interests. It was the decade when the ideological viewpoint of the National Association of Manufacturers, which was formed in 1895 to trash workers' pensions as "handouts," came to dominate the economic policies of both parties. Labor unions took it in the chin suffering setback after setback as real wages declined, unemployment rose, and pensions dwindled.

It was the decade of Enron and Worldcom and Global Crossing and Tyco and all those other corporate criminal rackets. Joe Lieberman, who received campaign donations from Enron, held a hearing where he tisk-tisked the practices that his own cheerleading for deregulation helped cause. And don't forget Blackwater and Haliburton and all the other war profiteers that made a killing, and the wars themselves we'll be paying for in overt pay-outs and hidden social costs for many decades to come. Death on the installment plan we might call it.

It was the decade when the "race to the bottom" resulting from "free trade" deals like NAFTA and the WTO came to apotheosis. The outsourcing and international trade imbalances hollowed out the American economy, eliminated whole categories of manufacturing jobs, and pushed the U.S. on a trajectory less like Europe and more like Mexico. China owns us.

During the 2000 campaign there was a running joke that George W. Bush got so much record-breaking corporate campaign cash that he wasn't really a human being seeking the presidency but a corporation. We can call the 2000s the "Worse Than Zero" decade or the "Big Zero," or anything we wish, but what characterized it most for me was the near total control of corporations, especially over our civic institutions. All of the terrible economic and governing ideas from the Reagan era crested and then crashed in the last eighteen months leaving something far less than "zero" in their wake.

 
 
 

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04:35 PM on 01/01/2010
Multi-million dollar deals between lawmakers & multinational would have been considered graft before, & those individuals thrown out or jailed. Large Corporations are now so much in control, they openly display giving $150,000,000 to a party in exchange for no government interference. All parties should be thrown in jail for even thinking this is acceptable behavior. $Billions are transfered monthly from companies to politicians, in deals enslaving the citizens past, present & future earnings. They do this openly to demoralize the population as much as possible.

We are now morally & financially bankrupt, in a complete & absolute fashion. Those thousands who took part in this theft, with enough dollars stashed, will be able to trade these dollars for unpolluted food, water & bullets. The rest will die slowly as salves fighting each other, so their masters will continue to live in comfort.

I know this sounds grim but our last hope has yet to turn the tide &, maybe much too late to the dance? Welcome to the New World, the one your for-fathers died penniless for, making sure it was secure for you. You & your offspring are now part of corporate America, whether you like it or not.
07:51 AM on 01/01/2010
Mercantilist China is a serious problem as a trade partner, to say the least, as they continue to subsidize their export machine at the expense of the U.S. and other countries. But dont conflate free trade agreements and NAFTA , which contribute to our economic health, with China. Two thirds of our trade deficit is with countries that we do not have free trade agreements with - China, Japan, Germany especially. And a significant part of our trade deficit with NAFTA partners is oil/energy related.
The Ross Perot/Pat Buchanan/Lou Dobbs criticism of NAFTA is misguided; U.S. manufacturing output was higher during the nafta era than before it, unemployment lower after NAFTA than prior to it (up till the financial collapse). Its makes a nice headline, NAFTA and free trade responsible by our woes, but it is simply erroneous. Automation combined with productivity increases are largely responsible for the decline of manufacturing jobs; it takes one third the number of auto workers to produce a car as it did 25 years ago.
12:09 PM on 12/31/2009
Couldn't agree more.
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dfranz
With Liberty and Justice for all
09:59 AM on 12/31/2009
Indulgence, Greed, Fearmongering, Hate, Insecurity

The last decade sequentially.
12:04 AM on 12/31/2009
I kinda feel as a character in "The Matrix" movies. Most if not all here are familiar with the storyline and the struggle of real human beings convincing the ones dreaming their lives away to WAKE UP! The corporatists are the keyholders in a matrix of their making and 1/2 this country at least would kill to keep whatever it is they have latched onto. I watch people very closely and have come to the conclusion that many people are asleep while beleiving that they are awake! Wrong! They are on auto pilot, going through the motions and barely aware of what is going on around them. Add to these those that willfully wear blinders to all that they find disturbing and there you have it. The rulers call the tune and we dance, asleep or not.One of the most troubling problems to this scenario is the unwllingness of the folks I've tried to have a talk with is their inability to grasp reality as long as their little life "seems" untouched. Something extremely horrible will have to occur to wake them up and then force them to realize they are in the cooking pot with the rest of us. What then? Matrix 4,5,6...?.
08:40 PM on 01/02/2010
I agree with you...very scary!
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BoyInBOYCOTT
10:56 PM on 12/30/2009
The malignant Cheney decade
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KOSMOCITIZEN
2b1leaderLearn2obey1st
02:43 PM on 12/30/2009
Republicans, who help with their blessings the deragulations and the tax cuts for the
big corps to the point the government works for the big corporations now
And it seems that they perfectly happy and condent to work for big business
Their behavior ,and their words lately, shows that what
they want to accomplish, all a long was just that. Corporations our masters...
And now they team up with teabaggers , religious nuts, racists, bigots,and they
try to scare the senior population so can be elected in power again to finish the
the destraction of AMERICA
12:20 PM on 12/30/2009
"It was the decade when the country experienced the corporate
take-over of everything -- every value, every human interaction,
every institution." --as an example

Actually, it would seem to me that it was the decade in which these
events and the circumstances that allowed them to happen, became
more transparent, more obvious, to the majority of the people instead
of remaining behind closed doors! I don't remember such a onrush of
criticism "while" they were happening. But then, perhaps the current
discontent and the blogs and articles about the current discontent
isn't as great, numerous and continuous as I've been led to believe
by the respondents on Huff 'n Puff. !?!
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Leo Mauler
04:06 PM on 12/30/2009
The events and circumstances became more transparent because, in this past decade, corporations realized they controlled Congress so well they didn't have to hide anymore.
12:09 PM on 12/30/2009
We're still gonna be mopping up the damage caused by the Bush administration, both locally and internationally in every aspect from military to economics, over 100 years from now.

And worse, we have a forty percent component of our population whose nostalgia for John Wayne and the virtues of "manifest destiny" will slow ideological progression for decades to come.
11:57 AM on 12/30/2009
I'd like to say it ain't so, Joe, but the so-called health care bill - which I hope the House refuses to eat - proves the author's contention. It's so amazing by its complete transparency as a corporate creature, and it makes me so sad to hear senator after senator and, perhaps, Obama, himself, acting as if it's a bill in the public interest.

How does it work that payola is controlling so much? If it's true that corporations are exerting such a huge influence, how are they doing it? How is power being manipulated and what can the public at large do to regain a voice in the national interest?

I have a theory: When communism was defeated at the end of the Cold War, a shift happened: State power, which had defined the 20th century to that point, was replaced by business power, as it was perceived that capitalism had triumphed over its antithetical economic enemy (when, actually, democracy had triumphed over totalitarianism.) Look at it: Is there any difference between corporate power in China or the US or India? This is the new transnational power structure we've created.

I don't have answers, but I would say this: The world-wide communications web we've created gives ordinary people the means to organize that can conceivably counterbalance the huge concentration of power that we, also, have created.
leftword
To deny reality is to embrace ignorance
01:51 PM on 12/30/2009
"How does it work that payola is controlling so much? If it's true that corporations are exerting such a huge influence, how are they doing it?"

Uh, payoffs? Bribes? (Oh, I meant "campaign contributions") Promises of bright futures as lobbyists or even corporate officers after retirement from politics?

"...what can the public at large do to regain a voice in the national interest?"

That's trickier. A revolution would do it but that's a last, desperate act, a cure far worse than the disease. I don't recommend it.

We could rely on the ballot box; maybe if we vote every incumbent out and make it plain that we'll continue to do so until the politicians start working for the people, not the corporations, things will change. Meanwhile, we could bombard our so-called representatives with our opinions, by e-mail, snail mail and, when possible, with marches. But this is all Utopian. Aside from a very small minority people just don't do these things. We'd rather watch "reality" TV and sports, and play with Chinese electronics.

A much better solution would be a new political party. Clearly, neither major party is serving our interests.

But that idea, too, is Utopian. As long as some nut can scream "death panels" and get headlines and even quotes from US senators, we're screwed. As long as one party works only to prevent the other party from governing, we're screwed. And AS LONG AS PEOPLE DON'T VOTE, WE'RE SCREWED!
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Joseph Palermo
Huffington Post Blogger/Author/Professor
06:55 PM on 12/31/2009
Thanks Shunga for trying to squeeze something affirming out of this mess -- I want to be optimistic, but it sure is hard
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MimiK
living in dramatic times
03:46 PM on 01/01/2010
I, too, want to thank Shunga for seeing something really important: We -- citizens, bloggers, new media, etc. -- started making a LOT of noise about the corporate takeover of the world (anticipated long ago by economist, David Korten, BTW).

We DID wake up. Remember all those "citizen outrage" blogs mid-2009, warning the Dems that we were pissed?

And what about all the protests against the corporate health care bill? And the bank bail out?

And what is all the Leftist ire against Obama about? --His indebtedness to corporations.

As I see it, we are moving toward the "new political compass" that was predicted at the beginning of this decade, notably by Paul Ray: corporate politics versus people and planet.

I'm with Shunga on this: the decade was about finally getting it -- getting what deregulation cost us. getting what globalization really means -- corporations owning the world. getting that our congress is a corporate congress.

Hard to hope?
Consider this, Joe: This is the moment when everyone is screaming that there is a fire in the tunnel.

If we didn't scream, we wouldn't know we have to get out.
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longtalldrink
Nearly all men can stand adversity, but if you wan
10:29 AM on 12/30/2009
We will never be rid of the corporations until "the people" begin to take their money out of the corporations and begin to buy locally. This of course is not going to happen because the education system has failed us and made us more inclined to believe the lies thrown at us day in and day out...hour by hour, second by second. We are all brainwashed, and while we are looking at the big shiny object (whatever crap is on our teevees) our pockets are being picked. We will have nothing, nothing but more misery. Keep the population dumb...that is what all the third world nations do, so why shouldn't it work for us? It also worked for the Roman Empire, the kept the population's attention span diverted with big spectacles like throwing people to the lions. Well, we are throwing our people to the corporate lions, but the MSM is keeping silent about it, because they too are uh...corporate owned. I know I am preaching to the choir on this site...maybe I should go to Drudge or somewhere.
09:11 AM on 12/30/2009
"It was the decade when the country experienced the corporate take-over of everything -- every value, every human interaction, every institution."

hahahahahahahahaha

are you just waking up Rip

Business is what makes Capitalism go round.... Made America the strongest Nation on the face of the Earth.... and it's been around for a lot longer than the past Decade...... what's new to the decade is the spin you guys put on it now..... Before you only herd you tripe in Pravda now it's standard fare in the NYT

roflmao
10:16 AM on 12/30/2009
We've heard from your herd before.
10:55 AM on 12/30/2009
If your free-market is so great, why did you steal trillions of other people's money to keep your big banking institutions from collapsing? Why did you need taxpayer welfare to prop up the airlines over and over again after deregulation?

There is no free-market with capitalism. It always needs the state, and that means other people's earnings to prop "it's too big to fail" businesses up. The biggest welfare queens are big corporations.

Take away tax-payer support, legal personhood, and overseas govt. antics done for their interests of your too big to fail corps.

Tax-payer support and lobbyists and coups in "vital interest" countries are what make "Capitalism go 'round."

Also, learn the difference between "herd" and "heard."
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Carl Caroli
I just don't understand people
08:55 AM on 12/30/2009
Greed kills.
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jmpurser
See My micro-bio
08:44 AM on 12/30/2009
While I was reading Krugman's excellent column I was thinking that only by the narrowest of economic measures (which he used) could the last decade be considered a "zero". By fuller measures it was an incalculable loss. I think we changed directions as part of the Reagan Revolution and are now picking up speed in the resulting decline. Unfortunately I don't see President Obama delivering any of the needed change so I expect to continue declining at this rate for the foreseeable future.
08:01 AM on 12/30/2009
maybe when they owe their soul to the company store these teabagging fox news watching zombies will finally wake up.
unfortunately this will occur at the point of no return.
10:27 AM on 12/30/2009
It may be an irreversible coma.