1 September 2010

Paul Roberts on the state of the economy

Paul Roberts has a good discussion of the U.S. economy over at Counterpunch. I especially like the following two excerpts:

If one overlooks the real world and the need of life for sustenance, one can become engrossed in this debate. However, the minute one looks out the window upon the world, one realizes that cutting Social Security, Medicare, Medicaid, food stamps, and housing subsidies when 15 million Americans have lost jobs, medical coverage, and homes is a certain path to death by starvation, curable diseases, and exposure, and the loss of the productive labor inputs from 15 million people. Although some proponents of this anti-Keynesian policy deny that it results in social upheaval, Gerald Celente’s observation is closer to the mark: “When people have nothing left to lose, they lose it.”

And that most taboo of all topics, the sacred military budget:
“Fiscal consolidation,” the new term for austerity, could save the dollar. However, unless starvation, homelessness and social upheaval are the goals, the austerity must fall on the military budget. America cannot afford its multi-trillion dollar wars that serve only to enrich those invested in the armaments industries. The U.S. cannot afford the neoconservative dream of world hegemony and a conquered Middle East open to Israeli colonization. Is anyone surprised that not a single proponent of the “let them eat cake school” mentions cutting military spending? Entitlements, despite the fact that they are paid for by earmarked taxes and have been in surplus since the Reagan administration, are always what economists put on the chopping bloc.


libhom said...

The real agenda behind the Cat Food Commission and similar ventures is redistribution, not austerity. They want more of our nation's income transferred from the middle class and the poor to them.

The rich make money off of wars, so the last thing they want is cuts in war spending.

Jazzbumpa said...

libhom nailed it.

The goal is destruction of the middle class. Starvation and homelessness are mere byproducts (or collateral damage, perhaps.) Social upheaval is the endgame that they are too stupid to see coming - and i probably is a long way off.

I like your blog, and have added a link to it on mine.