The Muse Minefield

December 29, 2010

A tale of two economies

“I’m sick and tired of people going to congress in Washington D.C. and making a living out of it while we starve to death.”

Those words were spoken by a resident of Newton Iowa during a segment of CBS’s 60 Minutes titled “Anger in the Land,” which aired on October 31, just days before the 2010 mid-term elections. The words were simple yet as savage as a sledgehammer striking at the foundation of the frustration shared by citizens across the land.

Newton is one of the small towns in America that has been decimated during the Great Recession. The 60 Minutes segment was devoted to capturing the mood in the country just before the elections that would be taking place in the midst of unrelenting economic hardship. A CBS/New York Times poll was cited that revealed that 80 percent of the people polled said they want most incumbents out of Congress regardless of whether that incumbent is a Democrat or Republican.

Though understandable, much can be said about the unsophisticated and suicidal aspects of this sentiment, which speaks to just how deep in the dark the majority of Americans are as it regards the jigsaw puzzle that is governance in this country. But in fairness to those of us who are languishing in the darkness, it’s extremely difficult to connect the pieces when we’re disconnected from the process. Note this exchange that took place during the 60 Minutes segment:

“What’s surprised you the most about this recession?” correspondent Scott Pelley asked business owner David McNeer.

“I think the depth of it, and the length of it. I think what surprised me the most about this one is it doesn’t wanna end,” he replied.

“You know, the economists say that the recession’s over,” Pelley pointed out.

“Really? They should come to Newton, Iowa,” McNeer replied.

But of course they won’t be coming to Newton because the people in Newton really don’t matter. They are no more a part of the economic recovery process that truly matters than they are a part of the political empowerment process that truly matters. And that goes for the majority of us living in America.

Robert Reich, former secretary of Labor under President Clinton, put it this way in a recent article:

There are two American economies. One is on the mend. The other is still coming apart.

The one that’s mending is America’s Big Money economy. It’s composed of Wall Street traders, big investors, and top professionals and corporate executives.

But there’s another American economy, and it’s not on the mend. Call it the Average Worker economy.

Simply put: There’s the American economy that matters to the folks that matter in Washington D.C. That’s the economy that’s composed of those that have the wealth and power to shape policy to their advantage. They are the ones that, for example, rule Wall Street and were able to contribute 15 million dollars to presidential candidate Barack Obama’s campaign and have the monetary muscle to lobby against any meaningful legislation to regulate the Wall Street investment banks “whose missteps caused a global financial crisis and economic slowdown two years ago,” as pointed out in an article that appeared in Bloomberg.com the other day. These are the people responsible for the economic catastrophe that has produced the suffering that is taking place in Newton IA and throughout the country and the world. 

Then there’s the Average Worker economy. The majority of us are plugged into the one that doesn’t really matter. Well, at least at the moment that’s the case. I’ll simply close with the ominous warning that Mr. Reich issued at the end of his article:

“…if nothing changes in the Average Worker economy, there will be hell to pay.”

October 29, 2010

Obama: The complexity of hope



This video features some searing commentary from Cornel West, esteemed University Professor at Princeton University, who teaches in the Center for African-American Studies and also the Department of Religion.

Although the interview took place almost a year ago I doubt that any reasonable person will challenge its relevance to the conditions that exist today, particularly as it concerns the level of unemployment that exists among African-Americans.

Professor West is providing the type of sophisticated, straight-with-no-chaser analysis that is needed and that will challenge Obama supporters to embrace the complexity of hope as fervently as they embraced the audacity of hope.

This is not to discourage participation in the democratic process; it’s just reminder of how extraordinarily difficult it is to bring about meaningful, fundamental change in this country…

From www.thegrio.com on Dec 1, 2009

Educator Cornel West sat down with theGrio to discuss how unemployment is affecting African-Americans.

TheGrio asked West about national unemployment trends for African-Americans. He called on President Barack Obama to implement a comprehensive jobs policy — a program that would mirror former President Franklin Delano Roosevelt’s New Deal, and focus primarily on creating jobs for people without a college education.

“[It’s] the same way we had an investment banker policy when they were in trouble,” West said of what he views as a double-standard in current economic policy. “All AIG needed was a push. So let’s help push these poor people, these working people into jobs with a living wage.”

West, who has been outspoken in both his support and criticism of Obama, said the current administration has not made poor people a priority.

“Obama has an economic team that’s composed of persons who have no history whatsoever of being concerned about poor people,” West said. “Obama’s been doing a good job of reassuring the establishment. But there’s many of us who believe the establishment is on our necks.”

The Princeton University professor is busy promoting his new book, Brother West: Living and Loving Out Loud. The memoir is a departure from West’s previous books, where he focused primarily on issues such as race and social justice.



October 27, 2010

How the Iraq War Ruined the Economy

Here’s a snippet of a presentation by the Nobel prize-winning and world-renowned economist Joseph Stiglitz, touching on some key factors regarding how the war in Iraq has impacted the U.S. economy.

The point that he makes about how the war had an impact on the futures market is not something that is normally brought out during conventional commentary. It’s just nice to hear a little analysis that is not dripping with political expediency…

Blog at WordPress.com.