Tag: Joseph Stiglitz

Reflections on 9/11

Cross posted from The Stars Hollow

Naom Chomsky: Was There an Alternative? Looking Back on 9/11 a Decade Later

We are approaching the 10th anniversary of the horrendous atrocities of September 11, 2001, which, it is commonly held, changed the world. On May 1st, the presumed mastermind of the crime, Osama bin Laden, was assassinated in Pakistan by a team of elite US commandos, Navy SEALs, after he was captured, unarmed and undefended, in Operation Geronimo.

A number of analysts have observed that although bin Laden was finally killed, he won some major successes in his war against the U.S. “He repeatedly asserted that the only way to drive the U.S. from the Muslim world and defeat its satraps was by drawing Americans into a series of small but expensive wars that would ultimately bankrupt them,” Eric Margolis writes. “‘Bleeding the U.S.,’ in his words.” The United States, first under George W. Bush and then Barack Obama, rushed right into bin Laden’s trap… Grotesquely overblown military outlays and debt addiction… may be the most pernicious legacy of the man who thought he could defeat the United States” — particularly when the debt is being cynically exploited by the far right, with the collusion of the Democrat establishment, to undermine what remains of social programs, public education, unions, and, in general, remaining barriers to corporate tyranny.

That Washington was bent on fulfilling bin Laden’s fervent wishes was evident at once. As discussed in my book 9-11, written shortly after those attacks occurred, anyone with knowledge of the region could recognize “that a massive assault on a Muslim population would be the answer to the prayers of bin Laden and his associates, and would lead the U.S. and its allies into a ‘diabolical trap,’ as the French foreign minister put it.”

Glenn Greenwald: Endless War and the Culture of Unrestrained Power

The Washington Post woke up a few days ago and realized that despite everything that has happened since 9/11 — no successful Terrorist attacks on the Homeland in 10 years, a country mired in debt and imposing “austerity” on ordinary Americans, and the election of a wonderfully sophisticated, urbane, progressive multinationalist from the storied anti-war Democratic Party — we are still smack in the middle of “the American era of endless war” with no end in sight.  Citing the Pentagon’s most recent assessment of global threats, the Post notes that in contrast to prior decades — when “the military and the American public viewed war as an aberration and peace as the norm” (a dubious perception) — it is now clear, pursuant to official doctrine, that “America’s wars are unending and any talk of peace is quixotic or naive,” all as part of “America’s embrace of endless war in the 10 years since Sept. 11, 2001.”

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Those who wield true political authority as part of an empire are vested with immense power over other people, but those who exercise that authority as part of wars are more powerful still.  That kind of power not only attracts warped authoritarians and sociopaths like moths to light, but it also converts — degrades — otherwise normal people who come to possess it.  That’s not a new development, but rather as old as political power itself.  Those bolded quotes are a pure expression of a demented, amoral God complex.  That’s the mentality that produces Endless War, and Endless War, in turn, breeds that mentality.

This is why there is nothing more dangerous — nothing — than allowing this type of power to be exercised without accountability: no oversight, no transparency, no consequences for serious wrongdoing: exactly the state of affairs that prevails in the United States.  It’s also why there are few things more deeply irresponsible, vapid and destructive than demanding that citizens, activists, and journalists retreat into Permanent Election Mode: transform themselves into partisan cheerleaders who refrain from aggressively criticizing the party that is slightly less awful out of fear that the other party might win an election 14 months away, even when their own party is the one in power.  Renouncing the duty of holding accountable political leaders who exercise vast power makes one directly responsible for the abuses they commit.  To see the results of that mindset, re-read that paragraph from (Amy) Davidson about what the U.S. is doing not in 2004, but now more than ever, in the name of Endless War.

Joseph E. Stiglitz: The Price of 9/11

NEW YORK – The September 11, 2001, terror attacks by Al Qaeda were meant to harm the United States, and they did, but in ways that Osama bin Laden probably never imagined. President George W. Bush’s response to the attacks compromised America’s basic principles, undermined its economy, and weakened its security.

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ndeed, when Linda Bilmes and I calculated America’s war costs three years ago, the conservative tally was $3-5 trillion. Since then, the costs have mounted further. With almost 50% of returning troops eligible to receive some level of disability payment, and more than 600,000 treated so far in veterans’ medical facilities, we now estimate that future disability payments and health-care costs will total $600-900 billion. But the social costs, reflected in veteran suicides (which have topped 18 per day in recent years) and family breakups, are incalculable.

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Ironically, the wars have undermined America’s (and the world’s) security, again in ways that Bin Laden could not have imagined. An unpopular war would have made military recruitment difficult in any circumstances. But, as Bush tried to deceive America about the wars’ costs, he underfunded the troops, refusing even basic expenditures – say, for armored and mine-resistant vehicles needed to protect American lives, or for adequate health care for returning veterans. A US court recently ruled that veterans’ rights have been violated. (Remarkably, the Obama administration claims that veterans’ right to appeal to the courts should be restricted!)

Military overreach has predictably led to nervousness about using military power, and others’ knowledge of this threatens to weaken America’s security as well. But America’s real strength, more than its military and economic power, is its “soft power,” its moral authority. And this, too, was weakened: as the US violated basic human rights like habeas corpus and the right not to be tortured, its longstanding commitment to international law was called into question.

Stiglitz: The Cost Of War and Redistribution of Wealth

Cross posted from The Stars Hollow Gazette

Nobel Prize laureate Joseph Stiglitz has consistently pointed out that the US is on the wrong track for economic recovery and that the continued support for the money pit of Iraq and the shifting the countries wealth to the 2% elite will be the downfall of economics growth, He recently wrote an excellent article in Vanity Fair, Of the 1%, by the 1%, for the 1%, pointing out that even the wealthy will come to regret this path.

t’s no use pretending that what has obviously happened has not in fact happened. The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous-12 percent in the last quarter-century alone. All the growth in recent decades-and more-has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.

(emphasis mine)

This is well worth the time to read the entire piece and save it as a reference as this country sinks further into the morass and becomes a “Banana Republic”as the Tea Party Republicans try to drag this country back to the 19th century by repealing laws that protect children and workers.

Stiglitz also appeared on Democracy, Now! with Amy Goodman and Juan Gonzalez to discuss his article and the current US “budget crisis” that has been fabricated by the right wing, Obama and the ever beholding MSM:

This week Republicans unveiled a budget proposal for 2012 that cuts more than $5.8 trillion in government spending over the next decade. The plan calls for sweeping changes to Medicaid and Medicare, while reducing the top corporate and individual tax rates to 25 percent. We speak to Nobel Prize-winning economist Joseph Stiglitz, who addresses the growing class divide taking place in the United States and inequality in a new Vanity Fair article titled “Of the 1, by the 1, for the 1%.” Stiglitz is a professor at Columbia University and author of numerous books, most recently Freefall: America, Free Markets, and the Sinking of the World Economy. “It’s not just that the people at the top are getting richer,” Stiglitz says. “Actually, they’re gaining, and everybody else is decreasing… And right now, we are worse than old Europe.” includes rush transcript

Nobel Economist Joseph Stiglitz: Assault on Social Spending, Pro-Rich Tax Cuts Turning U.S. into Nation “Of the 1 Percent, by the 1 Percent, for the 1 Percent”

The Invisible Hand: Too Big to Fail, vs Too Small to Notice

The Invisible Hand

The Nobel Prize-winning economist Joseph E. Stiglitz, says: “the reason that the invisible hand often seems invisible is that it is often not there.” [7][8] Stiglitz explains his position:

Adam Smith, the father of modern economics, is often cited as arguing for the “invisible hand” and free markets: firms, in the pursuit of profits, are led, as if by an invisible hand, to do what is best for the world. But unlike his followers, Adam Smith was aware of some of the limitations of free markets, and research since then has further clarified why free markets, by themselves, often do not lead to what is best. As I put it in my new book, Making Globalization Work, the reason that the invisible hand often seems invisible is that it is often not there.

Another Nobel-winning economist says it: we’re screwed

Joseph Stiglitz joins fellow Nobel-winner Paul Krugman in calling out the Obama administration. Both agree that the Obama plan will not work; Stiglitz is to be admired for stating in plain and unadorned language exactly why it won’t work.

http://bloomberg.com/apps/news…

April 17 (Bloomberg) — The Obama administration’s bank- rescue efforts will probably fail

because the programs have been designed to help Wall Street rather than create a viable financial system, Nobel Prize-winning economist Joseph Stiglitz said.

“All the ingredients they have so far are weak, and there are several missing ingredients,” Stiglitz said in an interview yesterday. The people who designed the plans are “either in the pocket of the banks or they’re incompetent.”

Dead Cats Bouncing

One of the best and most refreshing changes established by the Obama Administration has been its reliance on intellectuals, scientists, and experts rather than lobbyists and ideologues. Across a broad swath of federal departments, pragmatism seems once again to be valued. Unfortunately, with the world economy imploding, Obama continues to rely on the advice of corporatist insiders, and their advice is predictably corporatist. There also seems to be a bit of myopia going on.

On Saturday, Joan Walsh warned Obama supporters not to be taking credit for the previous week’s slight market rally:

As someone who has repeatedly defended Obama from GOP efforts to blame him for the current crisis and to deride the “Obama economy” only 55 days into his presidency, I think the administration could be playing a dangerous game. Live by the week’s economic news, die by it as well. If the Dow dives next week, or retail spending dips again, does that mean the stimulus failed?

Right on cue, Vice President Biden then weighed in:

“Consumer confidence is slightly up. The market is slightly up,” Biden said. “It’ll go down again, but the people are beginning to figure out that the president’s got a plan and he believes we can work our way through this.”

Um.

Nouriel Roubini has been warning that there may be “dead cat bounces,” or “bear market suckers rallies,” and there’s no reason to think the latest is anything else. Which means that Biden should maybe be a little more circumspect about taking a day trader’s view of a one week market rally.

Nobel Prize winning economist Joseph Stiglitz, last week:

Joseph Stiglitz on Capitalist Fools: How We Crashed the Economy

Joseph Stiglitz won the Nobel Prize for economics in 2001.  He was Chairman of the President’s Council of Economic Advisors from 1995 to 1997 for Bill Clinton.  He is also the former Senior Vice President and Chief Economist of the World Bank.  He opposed financial industry deregulation under Clinton, fought with Larry Summers, who is now Obama’s chielf economic advisor, over regulating derivatives (Stiglitz wanted to, but Summers won and that wrong decision contributed to the mess we are in.)  Stiglitz, while favoring trade, has questioned some of the faith-based beliefs of the free trade fundamentalists.    

Stiglitz has an excellent article in Vanity Fair on how we got to the worst economic times since the 1930s.  He points to five key mistakes-under Reagan, Clinton, and Bush II-and one national delusion.

The truth is most of the individual mistakes boil down to just one: a belief that markets are self-adjusting and that the role of government should be minimal.

Joesph Stiglitz, Capitalist Fools, in Vanity Fair

Free market fundamentalism is the God that failed.  More, after the fold.

Banks Stopped Regulations That Could Have Prevented Financial Meltdown.

Well, it’s all coming out now.  The Bush administration was warned about the potential problems with the housing bubble and loans being made, considered regulation, but backed off under pressure from, guess who?  Yes, the very banks being bailed out now.

Accountability means one thing for working people and another for the investment class.

WASHINGTON – The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.

Expect fallout, expect foreclosures, expect horror stories,” California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.

msnbc.com

Also on Daily Kos: http://www.dailykos.com/story/…