Thursday, February 5, 2009

Reaganomic Crisis

* Few individuals or businesses are unscathed by the economic crisis. Republican law makers, encouraged by Fox News lemmings, are insisting on the very Reaganomic formulae that got us here--out of work, losing money and in debt. Even if tax cuts were to stimulate, it would leave us with the same vulnerabilities and competitive disadvantages, with nothing to show for the additional debt.
* The fundamental and irreversible problem with the economy (ours and the world's) is that all the goods and services needed by the population can be provided by a declining fraction of the population, this as technology increases efficiency. Conscientious workers and well run companies are weakened by competition for providing goods and services and bankrupted by modest reductions in demand for them, as occurs when consumers behave more rationally.
* A satisfactory distribution of economic opportunity can only be achieved artificially by policies with that as a goal, ie by anti-Reaganomic policies.
* We should use this crisis as an opportunity to make adjustments that will be needed eventually when the earth cannot support the wasteful American way of life or the extension of that way of life to developing countries. Specifically, a substantial portion of the stimulus spending should go to wind, solar and geothermal power, as well as improved energy efficiency (cars, buildings, transit).

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