I doubt this was the Nobel Prize academy's intent, but the awarding of the laurel in economics to Paul Krugman really brings down the curtain on the age of Milton Friedman. Just as Friedman's dogmas about free markets and deregulation were the foundation for the shaky edifice of conservative "max out the credit cards and let magic marketplace fairies pay the bills" economic thinking, Krugman's sobersided views on how government intervention helped set the stage for sustained and widespread prosperity in mid-20th-century America can guide us as we dig ourselves out of the pit into which Milton's Minions have thrown us. With books like The Great Unraveling and The Return of Depression Economics, Krugman gave us the number of the truck that was about to hit America's (and the world's) financial markets. Friedman, let it be noted, was a Rutgers boy before he became one of the Chicago Boys. Krugman teaches at Princeton. So how's that for your Jersey connection? And here's how one Nobel laureate gave another his due, while also explaining where he went wrong.
Back in July, Chris Myers was caught on tape saying that the economy is "basically strong". Of course, we understand that this represents no actual thinking on his part - he's just repeating the Party line as promulgated by President Bush and Senator McCain. That, by itself, is a problem for me, as I prefer elected officials to have original thoughts once in a while. But John McCain managed to reverse himself on that about the time he decided he was going to "suspend" his campaign to vote on giving Wall Street investment houses $700 billion - so far Chris Myers hasn't changed his mind.
At least, he hasn't said anything about it. No, his press releases have focused on John Adler's personal investments and a Zogby poll that shows a statistical deadheat in the district. So we are left with the understanding that Myers still thinks the economy is basically strong.
And there is every reason to understand that Myers is dead wrong. Furthermore, his insistence on tax cuts piled on top of tax cuts would do more to fuel excessive speculation than it would to provide any sort of relief to the people who need it.
Here's the main lesson the Great Depression taught us: Capitalism is the best economic system just as democracy is the best political system, but both contain inherent dangers that require checks and balances to ensure that they work properly. One of the most prominent dangers of capitalism is that income will become too concentrated at the top, undermining the functioning of a consumer-based economy. The fruits of this lesson were put into effect during the New Deal through higher taxes on the rich, support for unions to help working people get a larger share of the national income, social programs to aid the poor, and such regulatory agencies as the Securities and Exchange Commission. A system of regulated capitalism was in place and worked very well from World War II to 1980.
Not only is the economy not basically strong right now, but those who want to cut taxes on the upper income levels to fuel the economy are basically wrong. The economy is burning - and Chris Myers wants to douse it with gasoline.
In my first official post as a Menendez for Senate staffer, I'm really excited to announce the launch of StandUpToBigOil.com. As many of you have probably heard by now, Senator Menendez is fighting back against Big Oil and their allies in the Republican Congress. The Menendez plan will force Big Oil to foot the bill for a 60-day suspension of the federal gas tax to ease the burden of outrageous prices at the pump. Senator Reid and the DSCC have been touting the Menendez plan for a few weeks now, and it really seems to be gaining traction.
Here's the proposal, in a nutshell. As both retail gas prices trend upward with no relief in site, the federal gas tax -- currently $0.184 per gallon -- would be suspended for 60 days, ideally during the traditionally high-priced summer driving months. This tax holiday would be revenue neutral, however, as it's paid for by a repeal of the tax breaks and corporate welfare Republicans have made sure to protect for their cronies in Big Oil. Even though word of the Menendez proposal has made its way around the netroots, this is an important point that's been too often overlooked. Senator Menendez is going to stand up to Big Oil and make them pay for real relief at the pump.
