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Deregulation to Nowhere

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Frank Rich:

For better or worse, the candidacy of Barack Obama, a senator-come-lately, must be evaluated on his judgment, ideas and potential to lead. McCain, by contrast, has been chairman of the Senate Commerce Committee, where he claims to have overseen "every part of our economy." He didn't, thank heavens, but he does have a long and relevant economic record that begins with the Keating Five scandal of 1989 and extends to this campaign, where his fiscal policies bear the fingerprints of Phil Gramm and Carly Fiorina. It's not the résumé that a presidential candidate wants to advertise as America faces its worst financial crisis since the Great Depression. That's why the main thrust of the McCain campaign has been to cover up his history of economic malpractice.

There's more--read the whole Rich piece--but Sunday morning being a sleepy time, let's sum up. McCain lies, obfuscates, preens, covers up, distracts, diverts, flies high, defends deregulation, and the major media have gobbled it up. For years.

If the media are to earn a stitch of authority--if they are to deserve any repute as diagnosticians and connectors of dots--they need to come clean. If the NYT and WP, to their everlasting credit, felt the responsibility to go public about how they became accomplices to fraudulent Saddam/WMD/al-Qaeda claim, they need to scrutinize how they covered the financial system and the politicians who smiled their way through the bubbles and thrived on its systematic depredations.

Any debate "moderator" who lets McCain off this hook--who fails to explore his career-long penchant for tycoon love--is derelict in his or her duty. Any "news" broadcast that fails to look open-eyed at his record is bankrupt.

P. S. Michael Finnegan in the LA quotes Obama in FL catching McCain out in a lot of his deregulation boosterism, including his support for privatizing Social Security, but even Finnegan feels the need to insert a flimsy pseudocorrection for the sake of kneejerk balance:

Playing off the pocketbook anxieties of the state's huge elderly population, Obama reminded Floridians that McCain had backed President Bush's doomed effort to let Americans invest Social Security benefits in the stock and bond markets. If the Arizona senator had had his way, Obama said, millions last week "would've watched as the market tumbled and their nest egg disappeared before their eyes."

"I know Sen. McCain is talking about a casino culture on Wall Street, but the fact is he's the one who wants to gamble with your life savings," Obama told 2,500 supporters in a theater at Bethune-Cookman University.

In fact, the Republican presidential nominee has favored giving only future retirees -- not current beneficiaries -- the option to invest Social Security savings.

Oh. Only future retirees. Presumably the lion's share of 2,500 supporters at a university are future rather than present retirees.

P. P. S. The WP's Michael D. Shear struck the right note the other day about McCain's deregulation zealotry over the years. The p. A1 headline: "McCain Embraces Regulation After Many Years of Opposition." (H/t: Hilzoy)


11 Comments

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And this is the whole thing about McCain to a pinpoint. He DOES have experience, and how does his behavior, decisions and judgment reflect what he has learned from his experience? NOT MUCH. His solution to everything is to twist his opponents arm a little harder: "Say it! Say it! Say: "The Surged worked! Say: 'John McCain was right about the Surge!'" Which he wasn't by the way--but increasing applied force, turning up the belligerence, is his solution to everything. That is his MONO-MANIA. 'I know how to win wars!' Yeah? With tactical hydrogen bombs? And far from straying off from the herd, he has been lockstep with his party on this whole 'We don't need no stinking regulation.' trickle-down voo-doo nonsense, from the beginning. His record is plain for all to see. But the MSN doesn't talk about that. He was a POW. And Sarah Palin doesn't blink.

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This is the best political cartoon I have seen for a while. Click Here

Mr Straight-As-A-Corkscrew

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Frank Rich's column should be headlined in newspapers all over America. But, the best we can hope for is a balanced report of McCain's life of failures, mistakes, and wrongheadedness balanced by information about Obama's preacher, people who serve with him on boards, and how celebrated he is. We need to accept that our country doesn't have a news media, it has a Republican cheering section with printing rooms.

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Absolutely. We have the 'New Izvestia', and the 'New Pravda'--which is fitting for a newly minted Socialist Republic that wishes to acquire Georgia and the Ukraine as satellite states, and wishes to privatize profit and socialize risk.

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In fact, just savor the exquisite irony that the Party that Identified Itself with it's aggressive posturing toward the Soviet Socialist Peoples Republic and their Worldwide Revolution--has turned the United States of America into a Socialist Republic--over a weekend in Sept(a Velvet Revolution).

I mean, who is writing the 'History of the American People', Thomas Pynchon?

Excuse me for disagreeing, but I think what we're being asked to swallow looks a whole lot more like facism. At least in socialism, the people get something for their labor and their taxes.

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I'm with you, Jane.

Hear, hear!

-- ARG

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I think this is a silly argument because the transformation we have been undergoing has elements of both fascism and communism and from the perspective of the little guy there is very little difference.

COMMUNIST MANIFESTO
* Abolition of property
* Heavy, progressive taxes
* Abolition of inheritance
* Confiscation of the property of all emigrants and rebels
* Central banking
* State-controlled communication and transport
* State-controlled education of the children

FASCIST IDEALS
* Powerful idea of nationalism
* Powerful executive control in government
* Lower human rights outlook
* Military reigns supreme
* Corporations wield great power
* Idea that National Security is at great risk to some threat
* Identifying of enemies/scapegoats that unifies citizens in Patriotism
* Mass media controlled by State and Corporations
* Fixed elections
* Rampant corruption
* Unlimited power held by police force

The term fascism in origin refered to the concentration of political offices within the hands of the Roman Emperor, centered on his office of being head of the military. Since these offices were represented as swagger sticks, the symbol of fascism is a bundle of sticks with an axe at the center, and the Latin word "fasces" was actually only a bundle of sticks. However, it would be a gross misunderstanding to call the Roman Emperors fascist in any modern sense, for the magnitude of their political power by modern standards was slight, and imperial politics did not much impinge on people's lives.

Today must go beyond a purely political definition such as a non-separation of powers, for which we have a perfectly good word, authoritarian. Even the word dictatorship does not quite capture the horrors implied by our modern notion of fascism. One of the problems of definition is that we use the term fascism to refer to quite different movements and behaviors. This is why an empiricist definition forces us to be a little arbitrary when it comes to deciding whether the word fits in particular cases. Here is a list of empirical traits, to evaluate the how the typical properties of fascism compare to the typical properties of communism:

1. Ultra-Nationalism. This suggests the context of modern fascism is the bourgeois state. While communist movements can also be nationalist at certain points and national movements socialist, they don't seem intrinsically so. In particular, communists are principled internationalists, while fascists are quite the opposite, aiming at exclusion, not inclusion. So, as we look into the matter more deeply, communists and fascists seem the opposite in this respect.

2. Authoritarian. While communist movements can be authoritarian as well as bourgeois regimes, there seems to me to be a basic difference. The authoritarianism associated with fascism seems to be a consequence of systemic crisis, and it does not offer any escape from that authoritarian order. The authoritarianism that may be associated with a communist movement seeks to build the revolutionary unity and discipline needed to arrive at a non-authoritarian future. While this has proven tricky in practice and the short term effect on people might be the same, fascist authoritarianism and communist authoritarianism seem quite different when viewed as long term processes.

3. Anti-democratic. Fascism attacked any organization of private interest, such as unions, as threats to the political order under which the person's whole being was to be subsumed (culture raised to the political level). Communist movements have at times been un-democratic as well, but, again, when viewed as a long term process, they are quite different. Fascism sacrifices democracy to perpetuate the political order needed by capitalism; communism creates a political order that can usher in democracy and dissolution the state as an instrument of oppression.

4. Racism and xenophobia. The social anxiety arising from the bourgeois state in crisis lent itself to a definition of the other as a threat to the good political order. You could further that political order by attacking aliens, which helped purify one's own society. Communism can also be sectarian, but in ways that seem in principle to be less destructive. Communists represent the bourgeoisie as an alien class, but this does not mean the aim is to kill them as people, but only their class, their relation of production. That is, communists aim to expropriate capitalists and convert members of the bourgoisie into wage-earners. While you can't, as Mao once put it, make an omlette without cracking a few eggs, a revolution is very likely to be violent. However, in its course you don't attack on people for what they intrinsically are (their culture or race), but on their social role, which can change withough destroying the person. Communist movements can also be sectarian in terms of ideology, but I'd pursue a similar argument that while fascism attacks what people intrinsically are, communism attacks only their behavior. The difference is fundamental, for socialism seeks to develop everyone, while fascism excludes or eliminates all but a group that therefore ends being statically pure.

5. Class. Fascism seems historically linked to a crisis of the bourgeoise middle class. Although support might come from some workers as well, the movement seems primarily to arise from a crisis of the middle class. Communism, on the other hand, can also attract members from other classes, such as peasants and middle-class intellectuals, but it is characteristic of the working class, being the only ideology specific to that class. So basically, the movements engage contradictory classes, and so they are socially opposite. In short, while a narrow focus can find areas in which fascism and communism might share some similarities, a broader and deeper view suggests that they are quite the opposite. It is significant that in historical terms the two movements have been bitter enemies, and this confirms our impression that in terms of principle they are really opposite. differ. Although the issue of fascism vs. communism might seem at this point in time to be a dead issue, there is some indication that it may be reappearing. As a result, there must be a fresh approach if there is to be a useful outcome. If fascism is defined in empiricist terms, there will always be uncertainty as to whether it remains a concept relevant to contemporary circumstances. To what extent is Bush's Homeland Security proto-fascist? Questions like this can only lead to pointless spitting matches if we try to define fascism simply as a bundle of behaviors. A way out of this is to ask whether fascism can be defined in systemic terms. For example, can we define it as a set of strategies designed to cope with capitalist crisis? If so, we can then assess whether the US is sliding toward a fascism, leaving individuals with no viable options to express their private interests. A strike becomes disloyal, un-American. Failing that, the term might perhaps be limited to the WWII era, as a convenient collection of behaviors that arose in that specific historical circumstance.

Socialists and capitalists are not likely to agree over whether to employ an empiricist definition and one that is systemic, for Marxists prefer systemic explanations, while capitalist ideology tends to be empiricist. That is, there's no point in capitalists and workers trying to debate the issue with each other, although I think it is increasingly important that each class itself take the issue more seriously. The point is not for capitalists and workers to get hung up trying to debate the issue between themselves, but whether we are now witnessing the demise of democracy.

Socialists have for so long made an invidious distinction between political democracy (Marx's parliamentary cretanism) and socio-economic democracy that sometimes they underestimate the value of political democracy. The bourgeois state created a poltical commonwealth that at best protected the rights and personal security of its citizens and created a safe arena for their interaction and the manifestation of private interests.

Increasingly socialists appreciate the value of these benefits, even if they recognize the bourgeois political commonwealth as very w, as insufficient, and as doomed to failure. Globalization, U.S. world hegemony, IMF conditionalities, privatization, trade liberalization, the U.S. attack on the U.N., etc. (in short, capitalism), is tending to dissolve bourgeois political commonwealths. Marxists in principle don't simply reject the bourgeois political commonwealth out of hand, but aim to aim to transacend it with something that is better - that not only protects the individual, but at the same time encourages a social development of the individual (which capitalism does not even claim to do). Rather than get hung up over fascism, we need to decide whether the conditions necessary for a decent life the world over are today under serious threat and if so, devise strategies to preserve and develop these conditions in the future. Whether we use the term fascism to refer to the present trend should not be the center of debate.

Another great article Mr Gitlin.
Thank you

This may seem off topic but I think that it provides a big clue as to how Paulson thinks.

Does anyone know where Treasury got the authority to offer insurance to money market funds?

I kind of think it is non-existent.

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They are using a fund that already exists, based on a law passed in 1934. As I understand it, this law was related to the de-coupling of our dollar from the gold standard, which happened in 1933.

I have no idea whether the use of this fund for the new purpose of insuring money market funds is legitimate. (Somebody would have to challenge it in court, I suppose, to find out -- basically, they're going to do whatever they want until or unless someone tells them they can't.)

-- ARG

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