What to do about raging unemployment? Many Republicans and a few Democrats are peddling supply-side solutions. Cut corporate taxes. Reduce the cost of capital. Cut the employer share of payroll taxes.
This is nonsense. The problem is not on the supply side.
Companies don't need financial incentives to hire. They're sitting on $1.9 trillion of cash. They don't even know what to do with it all. If they wanted to use this cash to hire additional workers, they could. Instead, they're buying back their own stock and buying other companies.
Nor is the cost of capital an issue. Capital is cheap. Companies can get bargain-basement interest rates on new loans.
Nor does it make any sense to lower the employer share of payroll taxes. This won't create jobs. Payroll taxes are not deterring companies from adding employees.
Let's get real: The problem is on the demand side. It doesn't make economic sense for businesses to hire more workers unless businesses have more customers. And they don't.
These days consumers are reluctant to buy. That's because their real wages are falling, their home values are plummeting, they're still under a huge debt load, and they're worried about keeping their jobs.
Supply-side solutions have nothing to do with any of this. They're like pushing wet noodles. The economy needs a boost on the demand side.
For 30 years now we've been hearing from "supply-side" economists say that if we reduce tax rates on the rich and on corporations -- and keep the cost of capital low -- we'll get more jobs and growth. And the benefits will trickle down to everyone else.
Well, we've tried the theory out, and little or nothing has trickled down. Tax revenues are now 15 percent of the national economy. That's the lowest in 60 years. And capital is cheaper than ever. But the economy is going nowhere.
Can I be blunt? It's the demand side, stupid.
Thursday, June 30, 2011
'It's the demand side, stupid' | Marketplace From American Public Media
Thursday, May 19, 2011
We're all in this together
Sunday, October 31, 2010
A corollary to yesterday's post about political bedfellows
Time reported in the same issue that "Halliburton, while Cheney was CEO, greased the books to boost the firm's flagging fortunes." Creative accounting.
Dennis Kozolowski, Ken Lay, Merrill Lynch, Enron, Andersen, Halliburton, Adelphia, R.J. Reynolds, Tyco, Bristol-Meyers, Global Crossing, the list goes on and on of individuals and corporations involved in abuse and corruption during early part of Bush's FIRST term. It's as if there was no S.E.C. no accountability or transparency or ethics of any kind in business, finance, and government.
The Bush years were a new gilded age or cancer-stage capitalism. A culture of corruption flourished.
Is it any wonder that we're now dealing with the likes of Bernard L. Madoff, Goldman Sacs, Lehman Brothers, the entire mortgage-based-securities, and auto executives flying in on private jets to ask Congress for bailouts?
Obscene greed. Yet Conservative Christians only get worked up about abortion and gay marriage. When I wrote columns scrutinizing John McCain's connection to the "Keating 5" and the S&L bailout scandal of the 1980's and how his role in deregulation of the financial sector may have helped lead to our current meltdown I was raked over the coals as some kind of unpatriotic, America-hating, abortion promoting liberal.
Transparency and accountability, and a whole lot of self-discipline is what America needs now.
Time for Relief, Recovery, and a whole lot of REFORM.
But what do I know? People have labeled me a "liberal" and now I have to wear that label like a scarlet letter.
Wednesday, October 21, 2009
Chemo Therapy Sucks, but we seem to need it
Capitalism is not bad, it can be pretty good. Unfortunately, what Ayn Rand, Ronald Reagan and Alan Greenspan's philosophy of absolute libertarianism for big business has brought us is not free markets, but "cancer-capitalism."
It meets the definition of having three malignant properties. Derivatives schemes began as uncontrolled growth on Wall Street, it invaded mortgages, financing and credit, which effected our entire economy and most aspects of our lives and culture, including health care and unemployment.
We need regulation. We need it on Wall Street to prevent wild speculation, and we need it on K Street to prevent the unfettered influence of special interest groups on Washington.
This is not Socialism, Communism, or Marxism. It's common sense. Some people seem to think that the Revolutionary War was just about King George III, but it was also about the abuses of mercantilism, monopolies like the East India Company, and the super rich in Parliament. America used to be about fairness, equality and justice. Its time to stop being afraid of government and start using it to restore balance to the system and protect the little guy again.
You don't play a football game without rules and referees, how can you expect to have competition in the markets without regulation? Where's Teddy Roosevelt when we need him?
Read more or watch the Frontline documentary about Brooksley Born, head of the Commodity Futures Trading Commission who tried to warn us back in the 90's. http://www.pbs.org/wgbh/pa
Tuesday, March 03, 2009
Christian Nation?
But in the wake of yet another stock market dive and almost daily revelations about CEOs', Madoff, and the Bush Administration's abuses and misuses of money and government- someone said to me that we seem to be a LONG way from being a "Christian Nation," and that we seem to be a society based on greed , lobbying, deregulation, loopholes, off-the books accounting, mortgage-backed securities, schemes, plots, and getting richer quicker without any consideration of the impact on others. And Rush Limbaugh warns that the Democrats will take away our liberties. What he means is that they'll demand accountability and transparency so that the fat cats won't have the liberty to rob the rest of us blind anymore. We've already seen out privacy and Constitutional protections revoked by the Cheney/Bush government who eliminated habeus corpus, tortured and secretly listened to us.
I may sound like a liberal, even a (gasp) "socialist," and people may accuse me of inciting "class warfare," but the Bible I read says that it is "easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God." (Matt 19:24, Mark 10:25, and Luke 18:25). I think that if we were to truly become a "Christian Nation," we would have to become our brothers' keepers. We should not just return the tax structure to what it was like under Reagan, but pre-Reagan (the middle class grew most robustly between 1932 and 1980). The Obama administration is finally starting to talk about the cost of health care and insurance, and it's high time.
The Republicans had control of all three branches of government under George W. Bush. Supposedly, their "base" are conservative-Christians. Not only did we lose our standing in the world in terms of foreign policy, but the current recession (some suspect depression) created by the supply-side, laissez faire economic faith worshiped so devoutly since Ronald Reagan began deregulating markets and busting unions, rhis recession is pulling the entire world's economics into crisis. This isn't God's divine retribution, but it IS direct result of our collective, corporate sin. The sins, not of homosexuality or abortion, or teaching evolution but the sins of greed, arrogance gluttony and avarice.
Gays and illegal immigrants aren't the problem. Iran and Iraq aren't the problem. Muslims and foreigners and Hollywood and high school and college science teachers aren't the problem. We're losing jobs and homes and insurance and benefits and maybe we want to blame Bernie Madoff or George Bush, but let's face it, as the cartoon character Pogo said back in the 50's, "we have met the enemy and he is us." Matthew 28 is important, Jesus did die for our sins so that we can join Him in Heaven someday, but you know what? Matthew 25 is ALSO important. If we aren't feeding the hungry, healing the sick, visiting those in prison, loving the unloved and unlovable- loving our neighbors and even our enemies- if we aren't caring for the poor, the aliens, the widows and orphans- if we are more intent on protecting our profits and avoiding taxes than sharing the fruit of our labor with others in need, then how DARE we call ourselves Christian, let alone a "Christian Nation."
"Listen, my dear brothers: Has not God chosen those who are poor in the eyes of the world to be rich in faith and to inherit the kingdom he promised those who love him? But you have insulted the poor. Is it not the rich who are exploiting you? Are they not the ones who are dragging you into court? they not the ones who are slandering the noble name of him to whom you belong?" ~James 2:5-7
Thursday, February 12, 2009
King needs history lesson about New Deal

From the Omaha World Herald; MIDLANDS VOICES
Facts are against New Deal’s foes
BY JIM BECHTEL
The writer, of Omaha, teaches at a local community college. He holds a master’s degree in modern American history.
In a Feb. 6 Midlands Voices essay, U.S. Rep. Steve King, (R) Iowa, echoes claims made by Wall Street Journal editors and Public Pulse writers: The New Deal is a bad model for President Barack Obama’s recovery program because it failed. This is untrue.
Historian David McCullough warns that amnesia is as harmful for a country as it is for an individual. Let’s remember the realities.
In the first place, the New Deal consisted of many parts, including bank deposit insurance (there were 4,004 bank failures the year before it began, zero the year after), Social Security, unemployment compensation, accessible Federal Housing Administration mortgages, a minimum wage and the Glass-Steagall Act, which separated risky investment banking from commercial banking. (This was later rescinded, to our current misfortune.) Because it was so successful, the New Deal was overwhelmingly endorsed by Americans the first chance they had. In the 1934 midterm elections, the Republican Party suffered its worst defeat since its founding. Some haven’t gotten over it.
Then, as now, collapse meant private investment had dried up, so public investment had to fill the gap. Public workers built New York City’s Triborough Bridge and Lincoln Tunnel and the beautiful Blue Ridge Parkway in Virginia. They went to work on 2,500 hospitals, 45,000 schools, 13,000 parks and playgrounds, 7,800 bridges, 700,000 miles of roads and a thousand airfields.
The University of Nebraska at Omaha has a grand old building, built by the Works Progress Administration, that is still in use three-quarters of a century later. Now called Arts and Sciences Hall, you can see it at the northeast corner of the campus as you drive down Dodge Street.
It’s ironic that the South has become the core of the Republican base. History texts note that the modern South was born as a result of New Deal programs. For example, the Tennessee Valley Authority, championed by Nebraska’s own U.S. Sen. George W. Norris, brought progress to many parts of Appalachia. Cheap electricity from its hydroelectric plants sparked the rebirth of Memphis, Tenn., and Atlanta.
With millions of workers rebuilding the nation’s infrastructure, as President Obama proposes doing, the unemployment rate dropped by nearly 43 percent [I had "an average of five perect a year"] from 1933 to 1937! This is a simple fact of record.
Now, unemployment did bounce back up in 1937 when President Franklin D. Roosevelt, listening to conservatives, thought the economy had recovered enough that he could cut social programs. This “turn to the right,” as it has been called, taught him a lesson. He resumed the stimulus programs, and unemployment resumed its steady downward march.
Congressman King claims that the Depression was the “result” of the New Deal. This defies logic: A “result” must, by definition, come after its cause. The New Deal was launched in response to 25 percent unemployment. You can rewrite history, but you can’t make time run backward. As the late Sen. Daniel Patrick Moynihan used to say, everyone is entitled to his own opinions, but not to his own facts.
And yet, right-wing publicists like Amity Shlaes persist in claiming the New Deal failed. How do they get away with it? Simple. They say “temporary jobs in emergency programs” don’t count. That is, if your paycheck came from the WPA, then building that grand old structure at UNO was somehow not a “real” job.
Never mind increased pride in being usefully employed or the new shoes for the kids and the food on the kitchen table. Forget the grocer’s smile; ignore the decrease in human suffering. The jobs must be erased from history because they fly in the face of fervently held ideological dogmas about supply-side economics.
It seems like the obstructionists in Congress would rather sacrifice the common good to their “Invisible Hand” mythology and subordinate the public interest to partisanship.
Monday, February 09, 2009
Fear itself
Recently our Congressman, Steve King wrote an op-ed piece where he tried to make voters afraid of the Stimulus package currently before the Senate by comparing Obama's strategies to those of FDR. King wants to blame the Great Depression."The short-term result of FDR's spending was minimal. Food shortages remained, millions of Americans still lacked jobs and true recovery did not occur. In the long run, FDR's stimulus led to higher tax rates and greater government involvement in Americans' lives. "But tale a glance at this graph from the depression era and the correlation between New Deal policies and prosperity are pretty plain. You don't have to be an economist to see it. Once again, Republicans are pandering in fear and paralysis rather than practical, pragmatic action meant to bring about progress.
Stop listening to the fear-mongering. We need some good old fashioned Relief, Recovery and Reform. King and the national Republicans want to make us scared because they're scared because they were the ones who benefited most from dismantling all the New Deal reforms that Reagan and both Bushes managed to do over the last few decades. Lobbyists, special interest money and the whole culture of corruption were designed to take advantage of the working middle class.
The best thing for our economy would be if President Obama WERE more like FDR. Tell King to go back to school and take a few History and Economics classes.
Friday, February 06, 2009
Don't they get it?
Wednesday, January 21, 2009
End of Supply-Side selfishness and short-sightedness?

"Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age...
...I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America: They will be met.On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.
On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn-out dogmas, that for far too long have strangled our politics.
We remain a young nation, but in the words of Scripture, the time has come to set aside childish things (1 Corinthians 13:11). The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness." ~BHO Inaugural address Jan 20, 2009
In other words, it's time to stop being selfish and short sighted and "Man-up," put on our "big-boy pants" and start looking out for our common best interest, not our personal comfort. High time. I say to this Amen.
Friday, January 09, 2009
A corollary to yesterday's post about political bedfellows

George W. Bush Bush dumped $848,000 worth of Harken Energy stock back in 1990, two months before the company announced a $23.2 million loss; he was 34 weeks late in filing a form the Securities and Exchange Commission required to record the sale... According to Time Magazine, "...Harken concealed losses by selling most of a subsidiary to an off-the-books entity controlled by company insiders. Bush was on the audit committee, which, at least in theory, approved the deal. It's the same tactic used by Enron—on a massive, more pernicious scale..."
Time reported in the same issue that "Halliburton, while Cheney was CEO, greased the books to boost the firm's flagging fortunes." Creative accounting.
Dennis Kozolowski, Ken Lay, Merrill Lynch, Enron, Andersen, Halliburton, Adelphia, R.J. Reynolds, Tyco, Bristol-Meyers, Global Crossing, the list goes on and on of individuals and corporations involved in abuse and corruption during early part of Bush's FIRST term. It's as if there was no S.E.C. no accountability or transparency or ethics of any kind in business, finance, and government.
The Bush years were a new gilded age or cancer-stage capitalism. A culture of corruption flourished.
Is it any wonder that we're now dealing with the likes of Bernard L. Madoff, Goldman Sacs, Lehman Brothers, the entire mortgage-based-securities, and auto executives flying in on private jets to ask Congress for bailouts?
Obscene greed. Yet Conservative Christians only get worked up about abortion and gay marriage. When I wrote columns scrutinizing John McCain's connection to the "Keating 5" and the S&L bailout scandal of the 1980's and how his role in deregulation of the financial sector may have helped lead to our current meltdown I was raked over the coals as some kind of unpatriotic, America-hating, abortion promoting liberal.
Transparency and accountability, and a whole lot of self-discipline is what America needs now.
Time for Relief, Recovery, and a whole lot of REFORM.
But what do I know? People have labeled me a "liberal" and now I have to wear that label like a scarlet letter.
Sunday, December 28, 2008
We need Progress
Recently I was reading about Teddy Roosevelt again and I came upon the speech he made to the newly created Progressive Party after the Republican party powers that be disenfranchised their own primary voters by nominating William Taft in 1912. How different would the political landscape be today if they'd picked up the torch of progressive reform instead of maintaining their practice of protecting the wealthy at the expense of the middle and working classes? I've written a lot about how I think Obama needs to follow the patterns of Franklin Roosevelt since we're in such an economic mess, but maybe he'd do just as well to learn from FDR's Republican cousin (that is, until the Republican Party betrayed him). I wish I could convince all my Republican friends that Teddy's philosophies are far more beneficial for America than Reagan or Bushes. Whatchya gonna do?"...our aim should be the same in both State and Nation; that is, to use the Government as an efficient agency for the practical betterment of social and economic conditions throughout this land. There are other important things to be done, but this is the most important thing...
I am well aware that every upholder of privilege, every hired agent or beneficiary of the special interests, including many well-meaning parlor reformers, will denounce all this as "Socialism" or "anarchy"--the same terms they used in the past in denouncing the movements to control the railways and to control public utilities. As a matter of fact, the propositions I make constitute neither anarchy nor Socialism, but, on the contrary, a corrective to Socialism and an antidote to anarchy...the most pressing and immediate need is to deal with the cases of those who are on the level, and who are not only in need themselves, but, because of their need, tend to jeopardize the welfare of those who are better off. We hold that under no industrial order, in no commonwealth, in no trade, and in no establishment should industry be carried on under conditions inimical to the social welfare. The abnormal, ruthless, spendthrift industry of establishment tends to drag down all to the level of the least considerate...
The present conditions of business cannot be accepted as satisfactory. There are too many who do not prosper enough, and of the few who prosper greatly there are certainly some whose prosperity does not mean well for the country. Rational Progressives, no matter how radical, are well aware that nothing the Government can do will make some men prosper, and we heartily approve the prosperity, no matter how great, of any man, if it comes as an incident to rendering service to the community; but we wish to shape conditions so that a greater number of the small men who are decent, industrious and energetic shall be able to succeed, and so that the big man who is dishonest shall not be allowed to succeed at all.
Our aim is to control business, not to strangle it-- our aim is to promote prosperity, and then see to its proper division. We do not believe that any good comes to any one by a policy which means destruction of prosperity; for in such cases it is not possible to divide it because of the very obvious fact that there is nothing to divide. We wish to control big business so as to secure among other things good wages for the wage-workers and reasonable prices for the consumers. Wherever in any business the prosperity of the business man is obtained by lowering the wages of his workmen and charging an excessive price to the consumers we wish to interfere and stop such practices. We will not submit to that kind of prosperity any more than we will submit to prosperity obtained by swindling investors or getting unfair advantages over business rivals. But it is obvious that unless the business is prosperous the wage-workers employed therein will be badly paid and the consumers badly served. Therefore not merely as a matter of justice to the business man, but from the standpoint of the self-interest of the wage-worker and the consumer we desire that business shall prosper; but it should be so supervised as to make prosperity also take the shape of good wages to the wage-worker and reasonable prices to the consumer, while investors and business rivals are insured just treatment, and the farmer, the man who tills the toil, is protected as sediously as the wage worker himself...
One camp has fixed its eyes only on the need of prosperity, loudly announcing that our attention must be confined to securing it in bulk, and that the division must be left to take care of itself (Supply-side, free-market, Reaganomics). This is merely the plan, already tested and found wanting, of giving prosperity to the big men on top, and trusting to their mercy to let something leak through to the mass of their countrymen below--which, in effect, means that there shall be no attempt to regulate the ferocious scramble in which greed and cunning reap the largest rewards.
From Teddy Roosevelt's speech at the Progressive Party Convention, August 6, 1912 in Chicago
Friday, October 31, 2008
Supply Side Economics
Okay, quick economics lesson:Demand-Side Economics, you raise wages, that increases the spending and saving ability of the middle class- heck it even grow the middle class. That demand, drives a need for greater supply. It works like a perpetual motion machine, the demand drives the supply, the supply feeds demand. That sustains the economy (although, admittedly, it may not grow the economy beyond what is reasonable).
Worked pretty dang good from 1932-1980, it even provided tax revenue to provide for things like the providing for the common defense, securing domestic security, promoting the general welfare, and especially securing the blessings of liberty for ourselves and our posterity (the "American Dream," where each generation had it a teensy bit better than the last one.
Supply-Side Economics (aka Reaganomics, aka Bushonomics) on the other hand is SUPPOSED to work so that if you drastically cut the taxes of the wealthy and corporations, they'll (theoretically) reinvest in research, production, and infrastructure (see the cartoon above on the current bail-out) which (in theory) would provide more jobs to the middle and lower classes and make up the revenue short-fall with payroll taxes. The idea was that "a rising tide lifts all boats."
IN PRACTICE, human nature being what it is, greed plays a roll. CEOs pay themselves 400x as much in salary as their employees make, executives put their own interests ahead of both their share holders and the common good- and certainly their share holders still come before the common good of the community, state, or nation. Investors use their tax cuts (and looser regulations) to gamble on bigger and bigger and quicker and quicker returns.
Was it Aesop or the Grimm brothers who told us about the goose that laid the golden eggs? Feeding, caring for, and nurturing the goose gets you years of golden eggs. Butchering the goose to get what eggs are in it's belly only gets you that one or two eggs. Greed vs. sustainability. Bubbles of rapid growth, or perpetual but gradual climb? Which is better for America in the long run?
As someone with a college degree in History, I'm here to tell you friends that 1980-2008 looks a lot like 1909-1929. A "gilded age" of conspicuous consumption , unregulated corruption, and unbridled ambition. PLEASE think about this when you vote on Tuesday. PLEASE.
This is not the difference between "Socialism" and "Pro-American," this is the difference between moral (good steward, civic-responsible) capitalism and amoral (malignant, cancerous) capitalism. PLEASE put America back on the right track.
"Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply. Primarily this is because the rulers of the exchange of mankind's goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.
True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish.
The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.
Happiness lies not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort. The joy and moral stimulation of work no longer must be forgotten in the mad chase of evanescent profits. These dark days will be worth all they cost us if they teach us that our true destiny is not to be ministered unto but to minister to ourselves and to our fellow men." ~ From FDR's first inaugural address, 1932
Thursday, March 27, 2008
Raiders of the Lost Rs
Professor Jones had just finished his lecture and was explaining to the museum curator about how a competing archaeologist had set a trap for him and taken the idol which Jones had spent months trying to procure.“Of course, Indy, of course, you know the museum will pay for anything you have, but my friend,” Brody urged, you may have something bigger to tackle for now,” and he ushered his colleague into the college library where two very official looking men were waiting by a research table in trench coats, brief cases, gray fedora hats and dark glasses.
“Dr. Jones,” the bigger man greeted him as all four settled into library chairs, “what do you know about the ‘invisible hand’ of Adam Smith?”
“Legends mostly, it’s a powerful myth among some western civilizations, especially the oil seeking tribes of old white male elephants and war hawks in North America,” the grizzled adventurer noted, “they treat it like a deity, really, supposed to guide the ebb and flow of financial markets.”
“We’ve found evidence in the beltway of this cult, policy makers chanting an obscure incantation ‘Laissez-faire,’ and something about a great god ‘Reagan’ and cutting things call ‘the prime rate,’ does any of this make sense to you?"
“Oh, sheez ,” Jones mumbled as he rubbed his face. “Let me read you something that a very wise man once wrote,” he started as he pulled a yellowed and dog-eared edition from his leather satchel.
“…Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men…they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit, they have proposed only the lending of more money-” Jones read with the help of his seldom worn spectacles.
“He, he’s ssu su-saying that they had let things get out of hand because of their own greed and materialism and then when they tried to fix it, they just did more of the same- like throwing gas on a ff-fa-fire, is that right?” asked the smaller of the two men, nervously fiddling with his own glasses.
“Something like that,” sighed the hard-boiled hero.
“Is there anything we can do? A better way? Even if it’s difficult and takes years to get back on track?” Inquired the big man. “There’s great fear of an ancient demon, the elephant and hawk tribes fear it so much that they dare not even utter it’s name, ‘Ree-Sez-Eon’ or something like that.”
This drew another heavy sigh from the archaeologist. He stood up slowly, ran his hand threw his hair, and headed for a section of books behind where the g-men were sitting.
“What is it?” asked the bigger man.
“The Rs the Rs” Jones muttered almost under his breath.
“Ah, the ARRRs,” nodded his friend Marcus Brody in recognition.
“What are these ‘ares?’ wh-what are they?” asked the little man in glasses.
Indiana Jones traced his finger along the spines of several large books until he finally found the one he needed. He slipped it off the shelf, dragging cob webs and the smell of mildew with it. Insects scurries into the dark gap left by the heavy volume.
“Here,” Jones said as he heaved the massive book in front of the two agents, opening it to the middle, a cloud of dust in it’s wake. He carefully brushed away another layer of dust with his hand and began tracing a column of paragraphs with his finger, stopping in the middle and pointing, “Here,” he said, pointing again with his finger to emphasize the discovery. Each of the men scooted closer in their seats, the one straightened his glasses while the other pulled a pair out of his coat pocket and put them on, straining to read the ancient words.
“Relief, Recovery, and Reform?” read the larger man who’d just donned his glasses.
“Yeah,” sighed Jones, as if the weight of the world depended on the words. “Relief, Recovery, and most importantly REFORM,” he repeated.
“In the first part of the century, the people practiced strange religions, ‘materialism,’ ‘unsupervised capitalism,’ ‘conspicuous consumption,’ ‘social-Darwinism,’ they were ruthless, heartless, and above all reckless cults that not only raped the land of resources but built empires on the backs of the poor and the middle classes. Ironically, the elephants and hawks held onto power by making the under-classes afraid of what they called ‘class-warfare’ and socialism, not to mention immigrants and Blacks.” He explained, “It was terrible, banks failed, unemployment skyrocketed…”
“And these three ‘R’s fixed everything?” the large man pressed.
“Well, you’re never going to have things perfect,” said Jones, “The deal was that you had to be pragmatic. The important thing was to try to make things fair for the most people, not just the people who already had it good. Of course there were also some very important pieces like collective bargaining for workers- which of course meant letting them to organize in the first place. A progressive tax structure, the idea was that we’re all in this together and the more you could handle, the more you were asked to take on. That way, it was easier for the people who actually worked for a living to save and get ahead. And then there was the biggest R of all was what prevented things like bank failures in the first place,” Jones paused for dramatic effect, and gave the g-men an intense look, “Regulation.”
"What kind of a book is this?" asked the two men it ogether.
"U.S.History, what else?" he replied.
Wednesday, October 20, 2004

"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country... Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed."
~ABRAHAM LINCOLN, November 12,1864
Mallory





