March 04, 2006

lessons of faux vs sperling



  the great debate has ended
 with both   fools 
  back on thier stools
  sittin' pretty 
   and  
ready to fight another day ....

have we learned anything...?

             no  madame not a damn thing 




========================================


  more thoughts on faux later

but tillthen

grace tom palley:

Jeff Faux and Gene Sperling 
are two titans of democratic economic policy

 Last week (February 23, 2006)
 they debated the core economic policy differences
 that define and divide 
old Democrats from new Democrats.

Jeff Faux is the founder 
and former President 
of the progressive Washington think-tank,
 the Economic Policy Institute

. Gene Sperling was the head of President Clinton’s
 National Economic Council from 1996 to 2000.

 
The two provide  a marvelous window 
on today’s Democratic Party.
 Faux is an old labor Democrat,
 Sperling a new Democrat.

 
Faux's  core thesis :

 America’s elite, drawn from both Republicans and Democrats,
 has abandoned America and joined a new global political party
 - the Party of Davos.
 Globalization therefore represents
 a new class war.
 On one side is a new global uber-capitalist class.
 On the other side are the rest of us,
 which is workers everywhere –
 not just the United States. 

            --  empty except for the davos bit  
                without realizing in your vision
 the  inevitable international conflicts
 created by all these trans nat scampers
this at once is too big  "uber caps
  a picture and no picture at all  since the biparts 
are pro amerikan cap
and imperial boosters ------


"Ron Blackwell, Chief Economist at the AFL-CIO,
 talks of how working families are boxed in
 by economic policy. 
. Imagine a square whose sides are 
labeled 

    globalization,

less than full employment,

 privatization 
and government spending cuts,

 and 
labor market flexibility.

 Standing inside this square
 are working families 
who are impacted from all four sides.

The old labor Democrat interpretation
 of the box sees workers pressured 
from all four sides.

 Globalization is more about competition
 than trade—

exerting massive pressure 
on private sector workers
 that drives down wages and benefits.

  
Globalization brings lower prices, 
but it does so at the high cost of lower wages 
and job insecurity.

--------- just check out real wage rates and the lower price effect is incorporated

facts are facts real value added  pure job hour
   keeps rising while wage rates  keep floundering -----------

 Public sector jobs and wages 
are threatened by the privatization
 and government spending cuts side
 of the box 
which puts them in competition 
with private sector workers


------------- yes but you miss the conflict 
deeper side 
between lower taxes on  private sector wages
that "may " result from shrinking the cost of gubmint 

like the above point
you need to incorporate the off sets ---------- 


. Less than full employment 
is where the Fed enters.
 Because the Fed puts a floor 
to the unemployment rate 
in the name of price stability,
 it contributes to weakening
 workers’ bargaining position.

--------------- this is right on if a bit cursory 
i'd like a whole article on this point -------------

 Meanwhile, ‘labor market flexibility’
 is code used by conservative business leaders
 for eroding the minimum wage 
and employee protections,
 and attacking unions. 
This shifts bargaining power 
to business and lowers wages
 for all workers, 
not just union members.


---------- what else where is called reversal 
of  new deal
     primary distribution trends --------------

New Democrats (Sperling) :
 globalization benefits working families
 by providing cheap imports
 that raise the standard of living,

---------- see above ---------------

 improve productivity 
via heightened competition,


-----------what ???--------------


 and provide jobs in the export sector


----------again the  negative im /ex trade gap 
 shows the  jobsters loser balance in that deal------------

 
 programs like worker trade adjustment assistance 
that can supposedly be paid 
for from the gains of globalization


---------- but wasn't isn't and will never be ---------------- 

In the new Democrat economy,
 working families benefit
 from the Federal Reserve’s
 less-than-full employment approach
 because it brings low inflation
 which brings down interest rates,
 thereby spurring investment and growth.


--------- i thought he was going 
to say lower  mortgage rates and higher lot values
at least that has to be reckoned with 
but ..."growth" ?????
 i got one of those on my big toe ------------------

 This is why new Democrats 
were okay with Alan Greenspan, 
 Indeed, Alan Blinder – 
another highly respected
 new Democrat economic adviser –
 calls Greenspan 
“the greatest central banker ever.”

---just left that in cause i liked it ----------------



 Sperling supports public spending 
on education and childcare.

 However, in the background lurks “Rubinomics”, 
which means that budget constraints 
and fiscal responsibility 
can always put the kibosh on these plans. 

-------------- again worth a whole post --------------

Finally, new Democrats are largely silent 
on the labor market flexibility agenda,
 and appear uncomfortable confronting it.


 Sperling’s  While he does support 
the minimum wage,
says nothing about the right to organize unions
 or strengthening the minimum wage
 by indexing it to wages 
so as to create a true floor
 that can rise with growth. 
This silence reflects 
new Democrats’ discomfort with questions
 of power as the labor question 
has always been one of power 
in capitalist economies

------------ here comes the bi partisan 
                              wally boy rap ------------


In many ways, new Democrats are closer 
to Republicans than to old Democrats.


--------- repeat -------------------------

 From an old Democrat perspective,
 new Democrats persistently seek
 to deal with “effects”, and refuse 
to deal with “causes”. 


--------------- no say they'll nurrse nelly
but jiggle rattles
 and  perform a medicine dance only -----------------

 new Democrat policy solutions
 are simply not proportionate 
to the scale of the problem
 facing America’s working families. 

------------------amen -----------------------


.

  power pays the bills,
 and new Democrats want the  money
 that the powerful currently give them.

 Ergo, new Democrats refuse to challenge 
the power structure,
 and hence their band-aid approach 
to working family economic woes. 


-----------------------------------------

my response:


pinky Says: 

March 3rd, 2006 at 12:26 pm 


sir:

thank you for the sum up ...

t'was 
bright accurate
but a trace britttle 


i like your  
 labels and frames  

(labor) dem vs new dem 

i make it by mission 

klass confliction  dems vs krass contrivence dems 

key point  

the one that  whithers
             one’s ardor 

if you are correct 
and 
“power pays the bills,
… Ergo, new Democrats refuse
to challenge the power structure, …”

and assuming the class fightin dems have bills too 

who will pay their  bills ????

surely not them damn “old “unions
                       in the afl-xxx

those f..ing cuffs ????

these so called 
 class struggle dems
in fighting the bi partisan traitors
of laputa capitalism
ie ” the davosians ”
are going to need 
a  stronger financial spine
El Sweeno and company will provide 

I'D SAY 
  lets talk prayin for a  mass eruption

until then guys like faux
will remain 
         nothin but
          righteous hot air funnels 


Posted by pinky at March 4, 2006 07:27 AM