Mike Whitney: Blame Larry Summers

[Kurt_and_Hunter]

I am not a big Counterpunch fan and do not endorse every tonal particular or broad conclusion of this piece, but it touches on a few points of general interest. Like all articles, it is there to be rejected, accepted or ignored.

Blame Larry Summers
By MIKE WHITNEY

Barack Obama's chief economic advisor, Lawrence Summers, is determined to sabotage a second round of stimulus. And, he's getting plenty of help, too. Congressional Democrats are dragging their feet because they're worried about the political backlash and midterm elections, the GOP deficit hawks are looking for a way they can derail the Obama agenda and reestablish their bone fides as fiscal conservatives, and the bailout-traumatized American people are simply opposed to anything that generates more red ink. Even Obama has joined the fray and started badmouthing stimulus stressing the importance of living within our means and trimming the deficits. So it looks like a done-deal; no more stimulus. There's only one problem, without another blast of stimulus the economy is headed for the skids.

Summers knows this because he is an extremely bright and competent economist. With Summers, the issue is loyalty, not intelligence. To prove this point, consider Summers comments in a Washington Post editorial (September of 2008) where he explains what needs to be done to put the economy back on track:

"Indeed, in the current circumstances the case for fiscal stimulus -- policy actions that increase short-term deficits -- is stronger than ever before in my professional lifetime. Unemployment is almost certain to increase -- probably to the highest levels in a generation. Monetary policy has little scope to stimulate the economy given how low interest rates already are and the problems in the financial system. Global experience with economic downturns caused by financial distress suggests that while they are of uncertain depth, they are almost always of long duration.

“The economic point here can be made straightforwardly: The more people who are unemployed, the more desirable it is that government takes steps to put them back to work by investing in infrastructure or energy or simply by providing tax cuts that allow families to avoid cutting back on their spending.” ("A Bailout Is Just a Start", Lawrence Summers, Washington Post)

.... snip (four paragraph rule) ....

http://www.counterpunch.org/whitney11272009.html

[ProSense]

1. "I do not endorse every tonal particular or broad conclusion of this piece but" Yes, let's

ponder the merits of this moronic conclusion:

Summers’ assignment is to bring the broader economy to its knees; to crush big labor by keeping unemployment high, to force state and local and governments to privatize more public assets and services, and to generate as much human misery as possible. In short, Summers is laying the groundwork for structural adjustment within the US, a policy which reflects his ongoing commitment to multinational corporations and neoliberalism. It's the shock doctrine redux. These people are monsters.

[Kurt_and_Hunter]

2. I consider that conclusion to be loony, as it is phrased

It speaks for itself and I have no doubt that the average DUer will reject that conclusion as a literal proposition. It is over-heated and needlessly conspiratorial.

I don't like writing like that. For starters, in this case, such needless bombast completely undermines a few worthwhile observations about Summers in less hysterical parts of the article.

But as someone who posts hundreds of media pieces on DU you should recognize that one can post a piece of interest without endorsing it.

People are free, even encouraged to draw their own conclusions.

[ProSense]

3. What?

But as someone who posts hundreds of media pieces on DU you should recognize that one can post a piece of interest without endorsing it.

I rarely never ask people to consider the merits of rants by lunatics.

Some Democrats did that from 2004 through 2007, asking people to consider the valid parts of one of the Swift Liar's arguments. In fact, it was considered cool by some to post that lunatic's articles here at one point.





Edited for reality.

[glitch]

4. That doesn't fit the binary paradigm: if any part of it is questionable or even wrong

or even simply disagreeable then the whole must be wrong.

Thanks for posting, I always find Whitney interesting.

[BeFree]

6. There is an argument to be made...

...that the PTB are attempting to level the global playing field by bringing down the level of the US.

There is evidence of it happening and even makes some common sense given that our consumption is beyond sustainability.

This "Summers' assignment" fits into that argument bloody well.

"Summers’ assignment is to bring the broader economy to its knees;...."

[ProSense]

8. So

Obama gave him that assignment and this: "Summers’ assignment...to crush big labor by keeping unemployment high..."?

Seriously, Summers works for the President. Does someone actually believe this is Obama's agenda?

[BeFree]

9. well

Obama didn't get where he is by actively opposing the PTB. He may even be in their pocket... at times it seems he is.

Nobody gets there without the approval of the PTB. And of course the advisers to Obama that are henchmen of the PTB would lie to Obama.

Just remarking that there are congruences.

[ProSense]

11. Who

are the PTB that you speak of? And again, who actually believes that Obama's agenda is "to crush big labor by keeping unemployment high"?

You?

[BeFree]

12. seriously?

You have no clue of the PTB? Hmmm

Is it a stated agenda of Obama's to crush big labor? No. Does it work to level the global field of labor? Yes. American labor wages spread around the world would break the rich by spreading their wealth hither and yon. They hate paying people the 'high wages', surely you've noticed? They hate big labor with a passion.

Oh wait, you don't even know what the PTB are. Maybe you haven't noticed.
Maybe you need an education.

[ProSense]

13. "Is it a stated agenda of Obama's to crush big labor? No."

The article is bullshit.

"You have no clue of the PTB? Hmmm"

No, enlighten me.

[BeFree]

14. Powers That Be: PTB

There is a thread here tonight, maybe GD, about income distribution.
When you come to the part where just a few have a stack of money that reaches as high as Mt. Everest, you see who makes up the PTB.

They got that high by keeping labor cheap. They hate paying high wages and resent the American working class because if they had to pay everybody similar wages they'd be down to the height of say, Mt. Washington.

The few PTB have more influence than the whole of the people of America.

[AllentownJake]

15. The entire reason why the game Monopoly was created

was to teach people what the end result of capitalism was. After hours of rolling the dice eventually someone was going to end up with all the property and money.

[ProSense]

16. See, this doesn't make sense.

Previously you said this: "Is it a stated agenda of Obama's to crush big labor? No."

Now you explain the PTB: They got that high by keeping labor cheap.

The OP is bullshit. Either you believe the crap or not, but don't keep spinning stuff about the PTB and Obama not pissing them off when you seem to be distancing yourself from the BS claim.

[AllentownJake]

17. Logically it can make sense

If you are of the belief that somehow the people with money are somehow involved in influencing political policy, but that is such a ridiculous stretch and doesn't happen in America.

[ProSense]

18. "the belief that somehow the people with money are somehow involved in influencing political policy"

Like who, Alan Grayson?

Sorry, the rich are evil generalized arguments are stupid. The GOP is full of a lot of not so wealthy evil, greedy asses.

[AllentownJake]

21. George W. Bush's rags to riches story

Is only slightly eclipsed by that of his father and I worry terribly that Dick Cheney may not have heating oil this coming winter.

[BeFree]

19. Right

It is not stated. How could he state such a thing and be supported by democrats? But if he is a pawn of the PTB it is his hidden agenda, and someone like Summers... well, you get the drift.

[ProSense]

20. What you are describing is a conspiracy

which out the OP article and the conclusion drawn in context: moronic.

[BeFree]

22. It is moronic

To not be aware of the higher forces at work around the world.

It is moronic to think that the PTB likes paying Union wages, and
moronic to think that they give a shit about little people.

They are happy as long as they keep and maintain their power and hand it off to their kind. Do you think for one second that with their riches and power they don't use it to keep it? Call it a conspiracy, whatever, but it is moronic to think they don't use their position to get their way.

[MannyGoldstein]

5. Summers is a friend of a friend of mine...

Based on what I've heard, Summers isn't evil; he's simply staggeringly incompetent. He's too clever by half, and has an amazing ability to miss the forest for the trees, just amazingly stupid stuff.

[Kdillard]

7. This was already posted and it is even more loony upon the second viewing.

[AllentownJake]

10. Such a bad pick

but when someone has such a horrible past, people are going to say horrible things about the person and it will be believed because of their awful past.