This is known. Why then austerity in the face of contraction? Is it stupidity?
“libertarian” Randian side of our political dialogue is stupid enough to think that government spending drains resources. Were there no Ayn Rand or Rand Paul, one would have to be invented. Randianism is a servant philosophy to the oligarchy. But those who feed at the government trough while preaching libertarian values know better. They cannot be that stupid. Can they?
The purpose of austerity is to assure that our wealth creation not be harvested not by ordinary people, but rather by investors, rentiers, war hawks, rent seekers, military manufacturers … tautology, tautology. It is then used to increase the wealth and reach of these classes. It is also used to take control of the resources and labor of foreign countries. We build new bases, create massive new emerald cities euphemistically called “embassies,” and funnel countless trillions (to date) into military hardware, all for the benefit or our owners. Our unemployed, or surplus workers, are enlisted to this cause. Since the oligarchy lives in fear of popular uprisings, government watches the people, the enemy within. (Those who imagine that government is by nature inefficient had better hope so.)
So while it is understood that we are in a depression, the economic policy or the Obama Administration (or “McCain” or “Romney” – get real) is merely opportunistic clamping down on use of government as a tool to serve the needs of ordinary people. Oligarchy demands no less.
The deficit and “national debt” could be eliminated tonight and no one of ordinary means would suffer. These thought control devices operate to temper the demands of regular people who insist their government serve their needs. We “can’t afford” Medicare! We can’t afford food stamps, Medicaid, national health care, infrastructure, employment opportunities, basic public education, and public education at higher levels based on merit. The things that we spend our money on that we don’t need, things that are extremely destructive to health, wealth and happiness – we don’t talk about those things. They are funded in the extreme by regular taxes, by deficits, by the Fed.*
There is no utopia. We cannot afford everything, and should not get everything we want. We need to work for our own benefit. Free money fosters the worst human qualities, as any trust baby will evidence. Almost everyone I know, potheads aside, takes satisfaction in productive labor. (Self-employment is the highest freedom we can attain.) We can easily afford health care, secure retirement, education at all levels, paid vacations, unemployment benefits, roads and bridges, monuments, and preservation of the commons. None of these are harmful, nor do they hamper our amazing wealth generating machine. But our wealth is being diverted to other purposes. In the propaganda system, everything listed here is a “burden” and adds to the “deficit.”
War spending, on the other hand is a necessity, is not even discussed in the mainstream in any other sense than “national defense.” It is many things, but it is not that. It not only serves to bring down other civilization centers, but also to keep us in indentured servitude to our owning classes.
*Senator Elizabeth Warren, misunderstanding Frederick Douglass to say that “power concedes nothing without a polite request”, modestly suggested that we use the Federal Reserve to finance student loans at .75% interest. Power said no. Power demands that students finance their own education, utterly absurd as the notion is.
PS: Can’t write for shit this morning. Some days my head is merely leaking effluence. On a regular day I can write 2,000 words. On a really good day, I can write 200.