Monday, February 10, 2014

Democrats are from cities, Republicans are from exurbs

http://www.dailykos.com/story/2014/02/09/1274795/-Democrats-are-from-cities-Republicans-are-from-exurbs?detail=email

An economic school has led to gridlock in Washington

An economic school has led to gridlock in Washington

By E.J. Dionne Jr., Published: February 9

One of my favorite moments during the 2012 Republican presidential contest came 
when Ron Paul, fresh from his strong showing in Iowa, triumphantly told his 
supporters: "We're all Austrians now!"

I imagined many Americans scratching their heads and wondering: Why do we want 
to be Austrians? They live in a nice country with stunning mountains and all 
that, but aren't we perfectly happy to be Americans?

Of course those in the know, particularly Paul's enthusiasts, understood the 
libertarian presidential candidate's reference: that Americans were rejecting 
the economic ideas of John Maynard Keynes that encouraged government 
intervention and provided intellectual ballast for the New Deal. Instead, they 
were coming around to the principles of the anti-government economics of 
Austrians Friedrich A. Hayek and Ludwig von Mises. 

Hayek and Mises perceived little difference between democratic governments that 
used their power to plan against recessions and dictatorships that did the same 
thing. In this view, the policies of Franklin Roosevelt led down what Hayek 
called the "Road to Serfdom" and were thus objectively comparable to those of 
Hitler or Stalin.

At the time, Paul offered some context for his Austrian journey. He was quoting 
a supporter who had noted a line attributed to President Richard Nixon that 
"we're all Keynesians now." Paul observed that back then, even Republicans 
"accepted liberal economics." Those days are gone.

Paul's words are worth remembering not only because they are entertaining but 
also because he has a point. To a remarkable degree, our politics are haunted by 
the principles of Austrian economics and their sweeping hostility to any actions 
by government to keep downturns from becoming catastrophes or to promote greater 
economic fairness.

This is, indeed, an enormous change. When Nixon declared his allegiance to 
Keynesianism, he was reflecting an insight embraced across partisan lines. 
Government's exertions, both during the New Deal and more completely during 
World War II, helped rescue the U.S. economy from depression. 

Postwar Keynesian approaches, including the Marshall Plan, let loose an economic 
juggernaut across the Western world. Secular and Christian parties of the 
moderate right and social democratic parties of the moderate left created free 
societies and regulated market economies that delivered the goods - literally as 
well as figuratively - to tens of millions. (The actual country of Austria, by 
the way, largely ignored the "Austrian" economists and followed a similar path.) 


Those who follow Hayek and Mises would have us forget this history or rewrite it 
beyond comprehension. They would also have us overlook that Hayek's "own 
historical justification for apolitical market economics was entirely wrong," as 
the late Tony Judt put it in "Thinking the Twentieth Century," his extraordinary 
dialogue with his fellow historian Timothy Snyder, published in 2012, after 
Judt's death.

Hayek believed, Judt said, that "if you begin with welfare policies of any sort 
- directing individuals, taxing for social ends, engineering the outcomes of 
market relationships - you will end up with Hitler."

But to the contrary, postwar initiatives along Keynesian lines are precisely 
what prevented both the resurgence of fascism and the collapse of Western Europe 
into communist hands. For that matter, Keynesian steps also kept the whole world 
from going into a much deeper and more disastrous slide after the financial 
crisis of 2008.

Yet today's conservatives are in thrall to Austrian thinking, and this explains 
a lot of what is going on in Washington. Broadly popular measures such as 
raising the minimum wage and extending unemployment insurance - normal, 
bipartisan legislation during the Keynesian heyday - are blocked on the 
assumption that people are better off if the government simply keeps its mitts 
off the market. 

It is now difficult for Congress to pass even the kind of spending that all 
sides once saw as necessary public investment in transportation, research and 
education. It's that "road to serfdom" again: Anything government does beyond 
enforcing contracts and stopping violence is denounced as the first step of a 
fox trot toward dictatorship. 

So let's give Ron Paul credit for unmasking the true source of gridlock in 
Washington: Too many conservatives are operating on the basis of theories that 
history and practice have discredited. And liberals have been more reluctant 
than they should be to call the ideological right on this, partly because they 
never fully got over the shell shock of the Reagan years and also because they 
have a strange aversion to arguing about theory. When it comes to government 
policy, the Austrian economists paved the road to paralysis.

So much for atheists having no joy in their lives...

http://www.alternet.org/20-atheist-quotes-about-joy-and-meaning-crush-angry-empty-stereotype?paging=off&current_page=1#bookmark

Tuesday, February 4, 2014