Class Warfare Blog

April 20, 2017

Why Conservatives Used to Fear Big Government and Now Only Pretend To

I used to believe that Conservatives opposed government because government was the only social institution that had the standing to oppose anything they wanted to do. I thought the Party of Big Business was just taking care of business.

But I was wrong and I have to apologize to those previous Conservatives. It is not as simple as I made it out to. So, if there are any Conservatives out there reading this, I apologize for underestimating you.

Here’s what I think the situation is now.

You Know Who

Back in the late 1800’s, Alexis de Tocqueville wrote in Democracy in America:
I seek to trace the novel features under which despotism may appear in the world. The first thing that strikes the observation is an innumerable multitude of men all equal and alike, incessantly endeavoring to procure the petty and paltry pleasures with which they glut their lives. Each of them, living apart, is as a stranger to the fate of all the rest — his children and his private friends constitute to him the whole of mankind ; as for the rest of his fellow-citizens, he is close to them, but he sees them not — he touches them, but he feels them not ; he exists but in himself and for himself alone ; and if his kindred still remain to him, he may be said at any rate to have lost his country. Above this race of men stands an immense and tutelary power, which takes upon itself alone to secure their gratifications, and to watch over their fate. That power is absolute, minute, regular, provident, and mild. It would be like the authority of a parent, if, like that authority, its object was to prepare men for manhood ; but it seeks on the contrary to keep them in perpetual childhood : it is well content that the people should rejoice, provided they think of nothing but rejoicing. For their happiness such a government willingly labors, but it chooses to be the sole agent and the only arbiter of that happiness: it provides for their security, foresees and supplies their necessities, facilitates their pleasures, manages their principal concerns, directs their industry, regulates the descent of property, and subdivides their inheritances — what remains, but to spare them all the care of thinking and all the trouble of living? Thus it every day renders the exercise of the free agency of man less useful and less frequent ; it circumscribes the will within a narrower range, and gradually robs a man of all the uses of himself. The principle of equality has prepared men for these things : it has predisposed men to endure them, and oftentimes to look on them as benefits.

After having thus successively taken each member of the community in its powerful grasp, and fashioned them at will, the supreme power then extends its arm over the whole community. It covers the surface of society with a network of small complicated rules, minute and uniform, through which the most original minds and the most energetic characters cannot penetrate, to rise above the crowd. The will of man is not shattered, but softened, bent, and guided: men are seldom forced by it to act, but they are constantly restrained from acting : such a power does not destroy, but it prevents existence ; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to be nothing better than a flock of timid and industrious animals, of which the government is the shepherd.

Sorry for the length of that quote but I think the vision is important, and obviously it was had a long time ago and probably before de Tocqueville. In the 1800’s the American experiment was still quite an odd affair. People governing themselves with no king or emperor? Preposterous. It took World War I to break the pattern of the divine rights of kings. But while Americans were afraid of despots taking over then as now, that is true fascism, de Tocqueville observed that it is quite possible that The Government Itself could become a substitute despot. And de Tocqueville was not alone.

Many Conservatives feared “Big Government” back in those days for that very reason, a good reason. And compared to the size of “government” now, it was puny back then. This anti-Big Government trope became a cornerstone of Conservative ideology that has lasted to this day—Do not let government grow to the point that our lives are ruled by it. So, the insistence that the Founders of the Constitution were small government advocates (most were not) came from there and a lot of other stuff.

But the New Deal, combined with the expansion of the federal government as a response to World War II drove the Conservatives a bit over the edge. A number of them decided that “if you can’t beat them, join them.” Instead of actually opposing big government, they decided that while the posturing would continue, the goal was the capture of the government and the running of the government for their ends into the future.

“So, while it looks like Conservatives fear Big Government,
they do not really fear it any more.
They have accepted that it is despotic,
that they couldn’t defeat it, but they could co-opt it.”

So, while it appears that Conservatives oppose “Big Government” only because it is the only social institution left that can oppose the will of Big Business, that is only a scrim, a stage setting. The monied interests (rich individuals and corporations) have already purchased our governments (sufficient of them in number to constitute a majority). They own the GOP. They have purchased most of the Democrats. They own the Courts. Now “shrinking of the government” is only a guise for the rubes. The drive to “reduce the amount of government regulation” (cue the voice of Foghorn Leghorn) is not to “reduce the size of government,” it is to get government out of business pockets. The drive to have tax reform is not to “reduce the size of government” but to cut taxes on the rich, so they will have even more money to buy governmental interests.

They are now officially, but not openly, okay with big government. (Most people didn’t notice that under the last six presidents, the government grew more under Republicans than Democrats.) Now with regard to government, it is the more the merrier, as long as it address their needs. Can you imaging the howling if the federal government picked out one business, say FedEx, to “defund” and to pull support from as they have done with Planned Parenthood? The howls could be heard on the Moon. But Planned Parenthood? It is okay for the federal government to attack it … now. You will see more of this.

So, while it looks like Conservatives fear Big Government, they do not really fear it any more. They have accepted that it is despotic, that they couldn’t defeat it, but they could co-opt it.

Until we, The People, deal with the oligarchs and roll back despotic government, it will continue to hang like ripe fruit in front of the eyes of rich men and corporations who know what to do with it. And it is for sale, no matter what we might wish.

April 11, 2017

You May Want the Federal Government Run Like a Business But Do You Want It Run Like One of His Businesses?

A common GOP trope now is that the federal government, all governments really, should be run like businesses. This idea is quite silly but has caught on because of the general dissatisfaction with government, something brought about by a propaganda campaign against the government by the GOP. Interesting gambit that: drum up general discontent creating a climate for the solution you favor. (Can you spell Nazis, boys and girls?) Their solution, by the way, is not running government as a business but running government for business.

As a little experiment, list all of Mr. Trump’s executive orders and then force each of them into one of two categories: 1) good for the people (makes the government better or stronger) or 2) good for business owners. This, of course, is a false dichotomy as many of these things will ultimately prove to be bad for both, but just doing this will take the temperature of the current administrations actions. (Actually, most of the EOs are symbolic in nature and at the beginning of long paths to implementation of anything, but that is another topic.)

Back to my main topic. Mr. Trump runs his businesses by squeezing labor by employing undocumented immigrants, avoiding union contracts, etc. and by squeezing those who are in agreements with him: local governments all the way down to the vendors serving his businesses. He also uses the courts to create advantages for himself: for every bankruptcy he has actually begun, he has threatened many more. He has threatened to sue people so many times that he could be the senior partner in a law firm. When one has considerable capital and can hire lawyers, nuisance lawsuits provide a lot of leverage over people for whom the legal costs are ruinous or at least damaging. And, I do not think he could threaten bankruptcy for the federal government, but he could create economic chaos through government shutdowns, debt defaults, etc. All of these are the high drama, high profile scenarios Mr. Trump favors as his business style.

Businesses owners are often casual at best toward the externalities of their businesses. Externalities are the physical “commons” we all share responsibility for. So, historically, businesses have dumped their wastes into the air, into the water, and onto the land with no thought of taking responsibility for the problems those waste “disposal” processes create. Did businesses lead the charge to clean up our waterways? our air? our waste disposal sites? If you are old enough, you remember that the “business community” fought these actions tooth and nail and are still doing this. It was government that lead the charge. (I remind you the our governments are effectively “us” for the purpose of collective actions.)

It was government, especially the federal government, that passed things like the Clear Air Act and other sets of government regulations that have made our air quality far better than it used to be. When I was in the fifth grade on the San Francisco peninsula, I was sent home from school one day because of smog. LA was far worse as the SF peninsula was surrounded by water and had clearing winds. Such smog alerts no longer happen, thanks to government regulations. Then there was the regulation for unleaded gasoline to prevent lead poisoning (opposed by business), the regulation for unleaded paint to prevent lead poisoning, especially of children (opposed by business), the gas mileage standards (opposed by business), the acid rain regulations (opposed by business), … need I go on?

So, has Mr. Trump made us safer or healthier by his diktats? Let’s see, he has made it okay for coal companies to go back to dumping their toxic waster (laced with heavy metals, like mercury, etc.) back into streams, he has set aside higher gas mileage standards, he produced an EO that asks agencies to review any regulations that could “potentially burden the development or use” of oil, natural gas, coal, and nuclear energy resources so that action could be taken to eliminate regulations. So much for wind and solar, who needs them and what’s a little pollution from coal power plants or nuclear ones; we can safely store radioactive waste, somewhere, we’ll figure it out. Doesn’t sound like a promising start, but then he did promise to “do away with burdensome federal regulations,” but not at any time being specific as to whom or what they are a burden.

So, if Mr. Trump’s Administration is being run like a business, who are the workers and who are the customers? If you are a worker, you will continue to be squeezed as that’s what Mr. Trump and his minions do in their businesses. Customers “buy” from a business, that is services or goods. If you pay taxes, then you are a customer. Do you expect better service? Mr. Trump has promised less of it (except military services and Homeland Security services). He has promised better service, but his budget proposal (actually Mr. Trump had almost nothing to do with the current budget proposal but it is traditional to attach the “ultimate cause” label to all presidents, so …), his budget proposal slashes services to “customers” right and left and then slashes the budgets of the agencies that are providing what remaining services there will be. How this equates to “better” is very hard to see.

So, do you think Mr. Trump is running the federal government as a business or for business? What do you think?

April 6, 2017

I Don’t Get It

The definition of “it” in the title is probably very, very long (very!). In this case it is our current debate about healthcare.

There is continuing support for certain functions of government to be paid by the government. Unlike knuckle-dragging conservatives, I do not see “government” as being some outside agency closely representing a skin cancer (something you want shrunk and or carved out), but as a representative of “us.” We are completely fine with “single payer” K-12 education. Citizens and non-citizens alike can register their children to attend a neighboring school and there the children receive an education with no further costs. (Yes, I do know there are myriad costs associated with a child in school, but those are not directly related to the education they receive.) This is, accurately, not a “single payer” system as multiple government agencies are involved, so maybe a better description is “government paid” for this schooling. We also have many other services that are “government paid.” For one, the military. For another, our government offices. When you go to your local councilman or alderman’s office for information or a complaint, there are no fees associated with those services. In all of those cases, the “government”—remember that means “us”—picks up the full tab.

The argument goes that those services are “essential,” that is we all need them and money should be a barrier to whether or not you receive those services.

Oh, there are also the police, fire services, the courts, etc. There are many things that fall into this category of “things we all pay so everyone can partake equally.” In some cases, this is the “many” protecting itself from the “few.” Many vaccinations are low cost, even free, to avoid the spread of diseases.

I don’t get why health care is not one of those things.

I understand that people, especially politically conservative people, have bought into a capitalistic “pay as you go” culture, uh, well, kinda sorta. The biggest proponents of “individual liberty/individual responsibility” are not all self-made people, many inherited money. If Donald Trump had invested all of the money he inherited in stock market index funds, he would have four times as much money now as he claims to have, according to some accounts. (So much for him being a good businessman, he has managed to lose only three quarters of his potential net worth. He is, at best, a mediocre businessman.) The Koch brothers inherited millions (and built upon those, yes). Mitt Romney, who claims that nobody helped him, was given two million dollars of “seed money” to help him get started as well as being given access to his really well-connected father’s associates. The Walton clan … well, daddy made the big pot for them.

For those without great wealth in this group are people who received help along the way from government (aka “us”) agencies. Help with their educations, help with business loans, help from other government agencies, etc.

But them poor people, they lack drive and ambition. They should go out and start a business. Really, you mean those business startups that have a 90% failure rate after three years? Where would they get the money to take that very risky venture? The banks? Wall Street? Venture Capitalists? (Sorry, laughing so hard my sides are aching.) If you haven’t noticed, over the last 30-40 years, businesses have stopped investing in their own business. They have accumulated trillions of dollars of cash reserves that are just sitting there. So, these are the people poor people are to emulate? (Step 1 Pile up a mountain of money. Step 2 Sit on it. Neoliberal Business Practices 101)

Poor people need to go out an get a job, then? Oh, do they mean the jobs conservatives have suppressed wages on for decades so they do not pay enough to meet a person’s expenses? Those jobs? All of the anti-union, anti-minimum wage rhetoric is not coming from poor people, it is coming from the same conservative ass holes who are insisting that everyone should “pay as you go.”

I do not want single-payer healthcare. (Currently I have Medicare and a Medicare supplement policy, and I pick up the slack those two do not cover, so there are at least three payers there, certainly at least two.) I want government paid health care. It is at least as important as an education for our kids, if not more so.

There’s more but my spleen just gave out.

* * *

Poverty is not due to a lack of character, it is due to a lack of cash. (I don’t know who said this first.)

March 20, 2017

The New Administration’s Budget

As vague descriptions of the new administration’s 2017-8 federal budget are being circulated, people are shocked, shocked I tell you, that that proposal eviscerates the Environmental Protection Agency and myriad other federal programs that actually help people (Meals on Wheels … gone, Support for Planned Parenthood … gone).

I do not see how anyone could be shocked at these long promised moves. This is the political party that has railed against and taken every opportunity to diminish labor unions, organizations that only exist to protect workers and their rights. It has also railed against Social Security and Medicare, the two most successful programs ever created to avoid poverty, especially in senior citizens.

They have reasons for doing these things, but if you watch carefully, you will see their lips moving, a clear sign they are lying. They are gutting these social programs for one big reason, their paymasters desire it. All of these efforts make working class people more compliant, less likely to strike back, and place as little opposition to what the plutocrats wish to do as possible.

The GOP said it wanted to, it tried to do it before, and now it is doing it. If you are surprised, you are an idiot.

Let me now … warn you in the most solemn manner against the baneful effects of the spirit of party….
It serves always to distract the public councils and enfeeble the public administration.
It agitates the community with ill founded jealousies and false alarms,
kindles the animosity of one part against another….

George Washington, Farewell Address, 1796

In this new era of globalization, the interests of companies and countries have diverged.
In contrast with the past, what is good for America’s global corporations
is no longer necessarily good for the American people.

Ralph Gomory, Former IBM VP

Wake up people, the corporations own this administration.

March 10, 2017

When They Told You “You Can’t Trust the Government” They Really Meant …

The GOP and corporate interests have waged a propaganda campaign over the past few decades with one of the primary messages being “You can’t trust the government.” They expanded from there to include “You can’t trust experts.” (What do they know about anything?) and “You can’t trust schools” (They are all failing.) and “You can’t trust teachers.” (They are just in it for the money. They need to be easier to fire.) and “You can’t trust government employees.” and many, many more of our social institutions. They didn’t even bother with “You can trust labor unions,” because they had already sold that trope to workers. Imagine that, working people were convinced that labor unions, the only force that could oppose the wage suppression efforts of corporations and their hired government, were not to be trusted. Amazing. Equally amazing is that these people are referring to them selves as “conservatives,” you know, those people who support our basic institutions and social structures over most anything else.

But, when they said “You Can’t Trust the Government” what they really meant was ““You Can’t Trust the GOP to Run the Government.” A case in point, one of many, is the Secretary of State of Mexico was visiting and had meetings scheduled at the White House. A member of “The Media” (Oh, “You Can’t Trust the Mainstream Media.”) called the U.S. State Department to find out why the Mexican Sect’y wasn’t meeting with our SOS; they were told “We were unaware he was visiting.”

Think about this: a political organization which has a platform that you cannot trust the government gets in charge of said government, which do you think they are more likely to do:
a. perform their duties to the best of their ability, or
b. mess everything up so people will be more disgusted and more untrusting of their government.

If you think the answer is “a” then the “best of their ability” is woefully short of the mark and constitutes a danger to all of us. If you thought the answer is “b” then we have elected gremlins to our highest offices.

In either case, boy, are we fucked.

March 8, 2017

GOP Plans to Repeal Dodd-Frank Legislation

Why do we need legislation that prevents big banks from undermining the whole world’s economy with overly risky investments? We can trust them. They are our friends.

Granted the Dodd-Frank legislation didn’t go nearly far enough (millions of dollars per day were spent lobbying against the law in the first place and then against its implementation after it was passed). The Glass-Steagall law should have been re-enacted verbatim, plus a whole lot more, but “burdensome regulation” is undermining progress in this country (whine, whine, sniff). This is why the big banks circumvented the existing regulations, corrupted regulators, and invented unregulated shadow banking in the first place.

We will only be free when big banks can wreak havoc as much as they desire … and, of course, our government bails them out every 6-8 years when it all crashes into ruin. Heck, the last time only cost us $2,000,000,000,000 (yes, that is two trillion dollars) plus several trillion more in lost property values, but that only affected ordinary citizens (they got no bailout, don’t you know).

At this point, I am starting to root for the GOP’s bad ideas. The party has so desperately wanted to do all of these things for years! And they are going to own the repercussions of each and every one of them.

More Run the Government Like a Business BS

We have elected a “businessman” as president and we often hear a campaign trope that we “ought to run our government as a business.” This is inherently stupid. How many businesses do you know which have an army with nuclear weapons and which can print money? Government is not a business and while some business methods do apply, many more do not.

Consider the recommendation of the Trump administration to cut the budget of the IRS. Imagine a business take over artist, taking the reins of a troubled business and the first action he takes is to cut the budget of the Accounts Receivable department. This is guaranteed to reduce the company’s income for no benefit whatsoever. Reducing the budget of the IRS is no different. Increasing their budget would make more sense, even for the GOP.

Opponents of the IRS have an acute case of “shoot the messenger syndrome.” The IRS does not make the tax laws, it does not set tax rates. Congress does. The IRS only does what Congress tells it to do. To cut the budget of the IRS is Congress telling the IRS to not do what Congress says. This is at best bizarre.

When one examines this most recent budget proposal, one is reminded of the movie Dave in which an impersonator of the President (played brilliantly by Kevin Klein) asks his friend Murray, an accountant, to help him find budget cuts that allow for a program near and dear to the First Lady’s heart receive funding. The cuts in the movie are patently ridiculous (e.g. a program to make people who have already purchased autos feel good about their purchases) which reinforces the public’s idea of “stupid government programs,” but in the Trump budget, programs which are inherently valuable are being axed to fund tax cuts for the rich and a budget increase for the Pentagon that was neither requested, nor is it needed.

This is not running government like a business, it is running a government via a bizarre ideology that rewards militarism (as long as it is profitable to GOP donors), diminishes succor to the poor and enriches those already rich.

We really need to have a serious conversation about the ideology of the GOP, being a manifestation of the mind of Scrooge McDuck at best and a national tragedy at worst.

March 7, 2017

The GOP on the Move!

Slow to begin, the GOP legislative onslaught is picking up steam. Here is a partial list of some of their coming hits:

HR 610 Vouchers for Public Education — (The bill also repeals basic nutrition standards for the national school lunch and breakfast programs.)
HR 899 Terminate the Department of Education
HR 785 National Right to Work (aimed at ending unions, including teacher unions)
HR 861 Terminate the Environmental Protection Agency
HJR 69 Repeal Rule Protecting Wildlife
HR 370 Repeal Affordable Care Act
HR 354 Defund Planned Parenthood
HR 83 Mobilizing Against Sanctuary Cities Bill
HR 147 Criminalizing Abortion (“Prenatal Nondiscrimination Act”)
HR 808 Sanctions against Iran

Actually, I can get behind the HR 899 effort. The Federal Department of Education has been either an embarrassment or a front for the privatization of public education (Arnie Duncan!). So this is no great loss. But what do the other bills have in common? Oh, if the GOP is suggesting it, it favors the rich!

HR 610 Vouchers for Public Education The rich have been trying for decades to get the private religious school educations they provide their children and currently pay for out of pocket to be paid for by the public. That and they also want to send their kids to lily white schools, preferably one with Country Day School in its name. And even the little touches are precious: with the repeal of the basic nutrition standards for school meals, ketchup is finally a vegetable again.
If the GOP is suggesting it, it favors the rich!

HR 785 National Right to Work This is famously anti-union legislation. The GOP is financed by corporate employers who wish to suppress worker’s wages. They have been doing a fabulous job of just that for the past 40 years, but still any opposition to their wage suppression scams is not to be countenanced. The plutocrats have pulled the fabulous rhetorical trick of getting their white, working class base to hate unions, the sole power player that can help them against the tyranny of the corporations.
If the GOP is suggesting it, it favors the rich!

HR 861 Terminate the Environmental Protection Agency Who needs the EPA? Clearly businesses do. When Ronald Reagan called in William Ruckelshaus to tame the EPA’s burgeoning bureaucracy, Mr. Ruckelshaus was astonished to receive encouragement to strengthen the EPA from none other than several chemical industry chief executives. Their message was that “the public, they told me, was spooked about the turmoil at E.P.A. Americans didn’t believe anything was being done to protect their health and the environment. They didn’t believe the E.P.A., and they didn’t believe the chemical industry. These executives had concluded that they needed a confident, fair and independent E.P.A. They knew that an environmental agency trusted by the public to do its job gave their businesses a public license to operate.” But the GOP just can’t help themselves, can they? All of those burdensome regulations hinder the American genius for making money (for plutocrats). Who needs air to breath and water to drink, we need jobs! (Remember the Goose That Laid the Golden Eggs?)
If the GOP is suggesting it, it favors the rich!

HJR 69 Repeal Rule Protecting Wildlife Hey, they have tooth and claw and don’t they have their own law about those? Let ‘em protect themselves. Under other new GOP legislation they will be allowed to buy firearms with no background checks, just like everybody else.
If the GOP is suggesting it, it favors the rich!

HR 370 Repeal Affordable Care Act The rich get a tax cut, the poor get early graves, a “win-win” situation for the GOP.
If the GOP is suggesting it, it favors the rich!

HR 354 Defund Planned Parenthood First they complain that people of color are having too many babies, now they want to make it so they have to have them. Don’t expect any consistency here. This was a campaign promise (not of Donald Trump’s) and a promise is a promise, even if the Planned Parenthood “issue” is another straw dog, like “Acorn.”
If the GOP is suggesting it, it favors the rich!

HR 83 Mobilizing Against Sanctuary Cities Bill Hey, we said “state’s rights” not “cities’ rights.” Local control? Nope, not while the local control guys are in power.
If the GOP is suggesting it, it favors the rich!

HR 147 Criminalizing Abortion “Doctors, lock ‘em up!” According to the GOP, those babies must be born before they can be abused and legally executed. It is a matter of the rule of law.
If the GOP is suggesting it, it favors the rich!

HR 808 Sanctions against Iran The GOP cannot help itself, it has to “poke the bear.” The Big Bear is Russia but Iran is an ally of Russia, so close enough. The neocons and apocalyptic proselytizers (Steve Bannon, et. all.) want war now because it will only get harder to wipe out those enemies of Christ as time goes on and the MIC says “There are no profits like war profits.”
Oh, and, if the GOP is suggesting it, it favors the rich!

 

March 6, 2017

GOP Plans to Repeal Dodd-Frank Legislation

Why do we need legislation that prevents big banks from undermining the whole world’s economy with overly risky investments? We can trust them. They are our friends.

Granted the Dodd-Frank legislation didn’t go nearly far enough (millions of dollars per day were spent lobbying against the law in the first place and weakening it and then against its implementation after it was passed). The Glass-Steagall law should have been re-enacted verbatim, plus a whole lot more, but “burdensome regulation” is undermining progress in this country (whine, whine, sniff). This is why the big banks circumvented the existing regulations, corrupted regulators, and invented unregulated shadow banking in the first place.

We will only be free when big banks can wreak havoc as much as they desire … and, of course, our government bails them out every 6-8 years when it all crashes into ruin. Heck, the last time only cost us $2,000,000,000,000 (yes, that is two trillion dollars plus or minus a few billion or so) plus several trillion more in lost property values, but that only affected ordinary citizens (they got no bailout, don’t you know).

At this point, I am starting to root for the GOP’s bad ideas. The party has so desperately wanted to do all of these things for years! And they are going to own the repercussions of each and every one of them.

February 23, 2017

Why Do Conservatives Want to “Let the Markets Rule?”

It is axiomatic that conservatives want there to be as little government regulation of economic markets as possible, because they claim that “the Invisible Hand of the Marketplace (Adam Smith)” guarantees the best possible outcome and the more we interfere with that, the poorer the outcome will be.

Conservatives say this as if it were a fundamental truth of economics.

Recently a prominent economist died (Kenneth Arrow) and his work is often held up as part of said proof of the infallibility of markets. As the obituary writer put it “Professor Arrow proved that their system of equations mathematically cohere: prices exist that bring all markets into simultaneous equilibrium (whereby every item produced at the equilibrium price would be voluntarily purchased). And market competition puts society’s resources to good use: Competitive markets are efficient, in the language of economists.” (Amen!)

But to prove that particular economic theorem a certain number of “assumptions” had to be made. Here are some of those:
•  all markets are perfectly competitive (all buyers and sellers have perfect information, no buyer or seller is big enough to influence prices)
•  markets in different locations are different/separate markets (so the market for milk in California doesn’t affect the market for milk in Illinois)
•  all markets contain “forward markets” as futures markets in which you can contract to buy anything, for example pork bellies (to make bacon, we hope), for any future year … forever
•  plus, of course, everyone has perfect foreknowledge of those futures markets, too.

This work is considered foundational in economics, earning the authors Nobel Prizes, etc.

Now, what that work actually proves is exactly the opposite of what is claimed. The work shows that markets are perfect and benefit society only with those pre-conditions. Of course, no such markets exist or can exist with those elements in play. What they proved was that the conditions for the trust people place in markets to “do the right thing” are only available in Never-Never Land.

Think about it. If one had perfect information of the future of the prices of pork bellies or any other commodity, why would trades be made? Currently, futures buyers buy future goods because of price uncertainty. The thinking is “I am going to buy now when the price is reasonable because I think the price is going to go up.” You certainly wouldn’t “buy now” if you knew the price was going to go down. And why would a seller sell to you at the current low price if he knew he could get a higher price by just waiting?

All of these assumptions are bogus. You cannot say that the local market for celery in California is unconnected with the local market for celery in Illinois when virtually all of the celery in the U.S. is grown in California. Similarly (and if you hadn’t been around for the past 50 years or so) we couldn’t get tomatoes or fresh fruit in the winter months (or lettuce, etc.) and we made do with substitutes (cabbage for lettuce, etc.) until the fresh, local harvest came in. Now, all winter long we get produce from Mexico, Peru, Southeast Asia, etc. We can have tomatoes and lettuce all winter long. Many of these markets are global making them most definitely not local.

And, then we have advertising to make sure that seller and buyer do not have the same information. (If you think advertisers are trying to share information, wake up!) And so, in no market is there “perfect information” for both buyer and seller.

So, getting back to the original question: why do conservatives want to “let the markets rule?” They actually do not want this. What they want is minimal or, better, no regulation of what they are allowed to do to make money. The “free markets” economics is just a smokescreen for “Do not tell me what I can do!” Further proof of this is the fact that these same people are trying to get advantages for their business written into law: tax breaks, labor favors (labor unions are disadvantaged in “right to work” states), and if they can pull it off: monopolies. Of course, these people say “competition is good,” but basically they want none of it.

If you want a case history of this in action, look at the U.S. automobile industry over the last 50 years or so (post WW2). At the beginning of that period the U.S. car market was dominated by Detroit Iron, mostly in the form of huge, heavy vehicles that got very poor gas mileage (even into the single digits of mpg). Foreign imports began to trickle in in the form of small, gas thrifty cars like the Volkswagen of Germany and Japanese imports (Honda, Subaru, Suzuki, etc.). The major U.S. manufacturers looked down their noses at these vehicles: they were small, had little power, and even less chrome details. But then there were the gas crises of the early 1970’s. All of a sudden, having a gas thrifty car was quite desirable. Sales of “imports” skyrocketed and American manufacturers started bringing out “economy models” to compete. But if “competition was good” Detroit was having none of it. It sought and got protection from the federal government which limited the numbers of cars that could be imported. Japan, previously content to be sending smaller, cheaper cars to the U.S. saw an opportunity. If it could import only so many cars, those cars should provide more profit than the small economy models, so they started importing higher end vehicles (still not luxury models, like the Lexus, but higher end vehicles). These vehicles were much better made that U.S. vehicles and offered much better gas mileage, too, so people snapped them up in droves. Having their numbers restricted also drove up prices because there were only so many around. (This resulted in the cars available being snapped up close to ports of entry, so people in Middle America didn’t notice this at first, but the coasts were bristling with imports.

So, the reaction of Detroit? Going back to Congress and asking for more protection.

At the same time, automotive safety standards were being introduced at the federal level. I remember watching the hearings regarding having a “5 mph bumper.” Detroit’s “Big Three” auto makers said such a requirement (that a car would survive a 5 mph collision with little or no damage—5 mph is a brisk walking speed) would bankrupt them. All of these manufacturers supported this claim. Then a witness, a “shade tree mechanic,” testified that he had a 5 mph bumper, all tested, and available for license that he had made that cost just about the same as what Detroit was paying for bumpers then. These whinging, uncooperative titans of industry certainly lost credibility in front of Congress, which hurt their efforts to get protection from their competition.

So, these claims of markets and competition are “good” are just smokescreens for what they really want: a guaranteed path to make as much money as they wanted to with no interference, certainly not regulations on fuel economy or safety. They preferred to compete on the basis of which cars had the most shiny bits, so as to impress your neighbors when the car sat in the driveway.

Granted, there are some conservatives who probably believe the economic BS (they aren’t a particularly bright group) but that doesn’t make their beliefs true. The real problem is the public has been brought to a similar belief because of the repetition of the false claims over and over and over. I used to carry a spray can of bullshit repellent for just such utterances, maybe I should produce those for sale. The market should be strong.

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