Response to American Politics and The Election

http://www.youtube.com/watch?v=VuCaWYvpVZg&feature=player_embedded#t=0s

I was looking for blogs on wordpress for the sake of interest and maybe even debate, I found a blog called You Viewed/Editorial. It had a post with a video called “Voices Without A vote”. I was writing a response to the video until I realized that the response was very long and I might as well post it on my blog. This is the link to the blog and the post: http://youviewedblog.wordpress.com/2012/10/12/if-not-you-who-if-not-now-when/

And this is my response:

Don’t you guys see the populism in this video and the two candidates? The United State’s political system is rigged and corrupted by lobbyism, the candidates are bought, and the two party system is elitist. The Democratic Party used to be a worker’s party, now its a conservative party favoring populist tax cuts and injecting billions of dollars into wall street through QE instead of mainstreet. Making wall street rich and the 99% left behind.

Romeny is not truly in favor of debt reduction, Obama isn’t either, but since this video is praising the GOP and ultra christian conservatives I will focus on him. He proposes a 20% income tax cut, let me remind you that only about half the country pays a substantial amount of income tax, yet almost all americans (except for the 1%) pay payroll tax. If one should cut taxes, (which they shouldn’t in the United States or they’ll face an increase in debt, bond yields and debt servicing leading to crisis) it should be payroll tax. The only way in which Romney will pay for these cuts is closing loop holes which according to the CBO will not make up for it.

I also want to say that the reason you have so much debt in America is not because of Obama, he followed textbook keynesian economics in order to stimulate the economy through investments in infrastructure and clean energy, QE(1) and other components of the stimulus package. But the debt was already in place due to Bush era tax cuts and the two wars. During the Clinton era taxes on the wealthiest were increased and growth was higher than during George Bush jr, in addition he was able to balance the budget, not that I am a supporter of Clinton or the democratic party for that matter. But Obama came into office with a huge budget deficit and economic collapse, don’t blame Obama for 2008-2012, blame Bush and the GOP.

And when they talked about returning to Reagan’s policies I started laughing, because he is anti-democracy and not pro-free trade or pro-small government. In both of his election campaigns he claimed that he would reduce the federal deficit, but in reality the deficit increased through his investments in the Space Program and funding the Muhajadeen which would eventually kill thousands of Americans on 11th September 2001. Reagan is the biggest paradox, in addition he supported the military junta and dictatorship in Haiti and aided rebels against the DEMOCRATICALLY elected government in Nicaragua.

If you want the budget to be balanced you shouldn’t vote for Romney or Obama but for the Constitutional Party’s candidate Virgil Goode, not that I am a supporter of his ideas either. What you guys don’t realize is that American politics is bought by wall street, as long as corporations can still make donations to campaigns, the poltics in the USA will not represent the people of America, but the corporations of America.

English: , member of the United States House o...

English: , member of the United States House of Representatives. (Photo credit: Wikipedia)

Job Creation Progressive Style!

So I watched this video on www.therealnews.com which is a independent news network based on private donations not corporate sponsorship. The video included many left wing and progressive intellectuals discussing job growth and job creation. There are many aspects of the video which I agree with, for example that growing inequalities within the economy leads to economic ineffieciencies and eventual collapse due to the fact that accumulation capital and investment does not reflect the demand of 99% of the population. Also the obvious fact that tax cuts for the rich does not increase investments or consumption, as there is only so much one can consume with million dollar incomes and therefore this money will end up in Swiss bank accounts, is also correct.

However, I did disagree with one point, the fact that the US government should continue investing in public services and stimulus programs in a time when the deficit is equal to 1 trillion dollars and when the economy is at risk from the fiscal cliff scheduled for January next year. The fact is that the US government is larger than it can afford to be, they have already lead a deficit spending plan and still are. I believe in keynesian theory of economics in the sense that government should be running a deficit in economic downturns and a more balanced or even a surplus budget during normal economic performance. However considering that the US government were already in deep deficit prior to 2008 due to the two wars and the Bush Administration’s tax cuts there was little room for stimulus, and the level of deficit accumulated today should definitely be the maximum incase of a huge increase in bond yields and increase costs for debt servicing which would lead to a debt crisis similar to that of the EU.

What needs to be done in the US is not making a 20% tax cut like Mitt Romney proposes, not even a middle class income tax cut like Barrack Obama proposes, but a tax increase on the richest 10% of americans and increased cuts in military. In fact both parties, republicans and democrats, propose to increase military spending and decrease taxes while cutting medicare funds for the old and vulnerable. It is almost embarrasing that the democrats and Obama consider themselves to be progressives when they are actually hardline conservatives; their policy proposals don’t even represent liberalism.

Apart from the Green Party’s candidate Gill Stein, who has no chance of winning due to the corrupted political and electoral system based on money, Obama is probably the better choice as the Mitt Romney campaign expresses policies extremely similar to that of George Bush; cutting taxes on the rich, increasing oil drilling, and having plans to invade Iran if necessarry. America does need a more democratic political system in which the entire political spectrum is represented, not only conservatives, that way we can truly fight the problems of the US and achieve humane deficit reduction plans.

Sustainability

middle class too big to fail

middle class too big to fail (Photo credit: Vince_Lamb)

The problem of sustainability rests in modern capitalism itself. Since 1990 atleast one region of the world has been in recession or economic downturn. This is the cause of the market forces placing increasing financial pressure on middle class, working class, students, public workers, and in essence any member of society who are not members of the economic and political elite. These are the owners of banks which are “too large to fail“, receiving billions in bail outs and billions of cheap loans from the Federal Reserve’s measures like quantative easing.

All of this is occurring while governments in the EU and the United States are initatiating cruel austerity measures including pension and salary cuts as well as cutbacks on public services such as healthcare, education and transportation. In the USA the Congress will meet a dilemma from the fiscal cliff, when the bush era tax cuts expire and income as well as payroll tax will increase substantially, while also cutting social security funds. In my view, if capitol will not alleviate the effects of the fiscal cliff it will cause the end of capitalism as we know it.

Instead of a wall street and capital based capitalism in which the economic and politcal elite are deeply intertwined we will see a liberalisation of politics and an increasingly egalitarian and democratic market structure in which trade unions and workers have larger influences over the economic structure than at the present structure. An economy based on production not financial transactions, where the economy is democratically organized by workers, engineers and managers through enterprises; not through top-down power based corporations where the largest shareholder have the most power resulting in economic oligarchy and centralization. We need a decentralized economy and decentralized politcal system in which communities provide social services and determine tax rates, not the federal state who has less of an idea of the local needs.

Freer and fairer trade must also be assured, markets should not be restricted by Reagenite protectionism which is harming global growth and development in the regions with the greatest need in freer and fairer trade. Not a free trade based on WTO, IMF or WB in which the region’s sovreignity and local needs are rejecied. These organizations are opting for an unethical neo-liberal strategy improving the economic imperialism of the protectionist west while limiting potential growth in the underdeveloped areas and sometimes even causing further poverty like in Mexico.

This is my vision for a sustainable and more equal future for the next generations. I am of course an idealist, and these reforms should not happen over night, in fact maybe not even during my own life time, but this should be the direction for which we should lead the economic system, from wall street style elitism to a more democratic and egalitarian economic system providing sustainability for all.