Category Archives: The destruction of the middle class

Debt Deal Back on Track and Why the Wheels Came off Yesterday

Bloomberg and other news services are reporting that a “stop the default meteor from hitting the planet” deal is back on.

A Debt Deal is Nigh! A Debt Deal is Nigh! Or is It?

If you make a quick scan of the headlines, which is the way a lot of people interact with the news, you’d see numerous reports stressing that Senate leaders had made “progress” in the “let’s try not to crash into the debt ceiling” talks and were hopeful of getting a deal done. Stock markets took cheer from these reports.

The Shutdown Talks Are in Chaos

A lot of readers, when we’ve discussed the budget/shutdown/debt ceiling negotiations, have done the equivalent of declaring it all to be kabuki, that the fix is in.

While I have no doubt that any resolution of this impasse is certain to make matters worse for what is left of the endangered species known as the American middle class, what is going on in DC is not a pretty scripted stagefight.

Why CEO Pay Will Keep Rising to Even More Insanely Unjustified Levels While Ordinary Workers Get Squeezed

Even casual scrutiny will tell you that the current ridiculous levels of CEO pay bear no relationship to anything other than their highly developed rent extraction skills.

Bill Moyers on Dollars versus Democracy, aka Supreme Court Case McCutcheon v. Federal Election Commission

Yves here. With the deficit showdown consuming so much media attention, a lot of important stories are not getting the attention they warrant. One is a case before the Supreme Court, McCutcheon v. Federal Election Commission, which many have called Citizens United 2.0. Bill Moyers and his guest, Yale Law School election and constitutional law professor Heather Gerken, discuss how this case has the potential to further erode campaign finance laws and increase the already considerable influence that monied interests have on politics.

Talks Over Debt Showdown Finally Underway, but Acrimony, Republican Divisions Impede Dealmaking

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In the hostage negotiations otherwise known as the budget deal, the movement on Thursday, that of the Republicans meeting with Obama and offering the idea of a limited extension of the debt ceiling with some thin conditions attached, is indeed progress. But don’t confuse progress with much progress.

Dan Kervick: Yellen Needs to Tell Politicians to Stop Passing the Buck to the Fed

By Dan Kervick, who does research in decision theory and analytic metaphysics. Cross posted from New Economic Perspectives

Evan Soltas is hoping that President Obama’s appointment of Janet Yellen signifies a new administration commitment to jobs and economic growth.

Unfortunately, Soltas seems to be one of those folks who is convinced that our failures over the past five years have much to do with a monetary policy that has been insufficiently “accommodative”. That’s just another version of the “if you only have a hammer, every problem looks like a nail” thinking. If you think the Fed has to fix the economy, sure, you’d think the Fed hasn’t done enough. But the Fed isn’t in a position to pull us out of this ditch, and Yellen should quit enabling the idea that it can.

As Budget Stalemate Hostilities Escalate, Obama Starts to Brandish Default Threat

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The confrontation underway in Washington DC isn’t as deadly as the Cuban Missile crisis. But in many ways, a misstep could be would produce collateral damage is hard to estimate but would unquestionably be large. So given the stakes, it’s remarkable to see Obama prove his manhood by telling those Republicans he is not intimidated by the possibility of default.

Budget Brinksmanship: American Exceptionalism Gone Bad

Being exceptional apparently means never having take responsiblity for your actions.

How the Foreclosure Crisis Made the Rich Even Richer

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It’s a welcome departure to see Adam Davidson’s weekly column in the New York Times, which usually puts a happy face on how the 1% are winning the class war in America, have a guest writer look at the other side of the story.