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Towards a just & healthy democracy in the Commonwealth... and beyond!
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Mon Jan 25, 2010 at 23:41:44 PM EST
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(Krugman would probably lose both his jobs and perhaps even his Nobel prize if he actually started speaking the truth... something's wrong in the land of big-e Economics. - promoted by eli_beckerman)
Monday's (1-25-10) column by New York Times op-ed regular and Nobel economics laureate Paul Krugman reminded me of something: He, like many a mainstream commentator, seems to disregard the importance of the idea that finite resources are finite. The economy is down, unemployment is way up and not showing signs of improving, and the stock market has declined yet again, and Krugman cites the danger of "a second Great Depression," yet he writes of that potential event as if it would last only a decade or two.
Krugman: "We have avoided a second Great Depression, but we are facing mass unemployment - unemployment that will blight the lives of millions of Americans - for years to come."
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| seemstome :: Thoughts on reading Paul Krugman Monday |
| The last time there was a worldwide Great Depression, however, the petroleum-based economy was much closer to its beginning than to its end. By the early 1900s commercial drilling and extraction of petroleum, coupled with internal combustion technology, was the engine of economic growth. Car and truck transportation fueled by ever-increasing amounts of gasoline, kerosene and diesel fuel, undergirded the economy. (During the Depression even the Okies got where they needed to go thanks to cheap gasoline.) A generation later the interstate highway system, introduced as a tool of national defense, helped transform an automobile economy into a car culture as suburban development dominated economic growth. Car culture promises to vault through the first decades of the 21st century as the news media feature "car pornography" on newsprint on television or online and "green" mainstreamers dream of solving energy shortages and global warming through the use of hybrid and electric cars.
Krugman writes of, so far, avoiding "a second Great Depression" but of still "facing mass unemployment that will blight the lives of millions of Americans ... for years to come" This analysis is fine as far as he takes it but does not burrow deep enough for the future well-being today's youngsters, who will not have reached midlife before the remaining petroleum in Earth's crust becomes uneconomic to extract. Like virtually all economists, Krugman fails to acknowledge that the first Great Depression was comprehensively ended - that is, it did not resume after World War II - because of an increasing supply of cheap oil, which now is ending.
The column, titled "The Bernanke Conundrum," includes a "full disclosure" reminder that years before Ben Bernanke was named chairman of the Federal Reserve Board by President George W. Bush, he was chairman of the economics department at Princeton University and hired a younger Paul Krugman to join his department. This exemplifies the proximity that blinders most economics commentators - right, centrist or left. They form a pretty small, elitist community.
Krugman opened his column with the words "A Republican won in Massachusetts," a reference to the political story du jour of Republican state senator Scott Brown's come-from-behind victory on Jan. 19 to fill the U.S. Senate seat held since 1963 by Ted Kennedy. Would that he will open his column next Nov. 5 with the words "The Greens won in Massachusetts," to reflect the upset victory of reality-based, future-oriented Green-Rainbow gubernatorial candidate, physician, and singer-song-writer Jill Stein, whose relocalization orientation will have finally and permanently gained political traction even on the op-ed page of The New York Times. |
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Green Mass Group is an online forum for Green thought and collective action in Massachusetts. It is a community forum for justice, sustainability, democracy and health in the Commonwealth and beyond.
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| Quotes |
"Now, is this the deal I would have preferred? No. I believe that we could have made the tough choices required - on entitlement reform and tax reform - right now, rather than through a special congressional committee process. But this compromise does make a serious down payment on the deficit reduction we need and gives each party a strong incentive to get a balanced plan done before the end of the year. Most importantly, it will allow us to avoid default and end the crisis that Washington imposed on the rest of America."
--President Barack Obama on the debt ceiling "deal"
"Despite Democratic control over the White House, despite Democratic control over the Senate, despite overwhelming opposition from the American people, a small minority of the members of the Republican-controlled House have successfully pushed an extreme right-wing agenda onto the American political landscape. It is an ideology which believes that despite the fact that the rich are getting richer, the middle class is shrinking, and poverty is increasing, all - all of the burden for deficit reduction should rest on working people."
--Independent Senator Bernie Sanders on the debt ceiling "deal"
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Then and Now
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Then...
"Last year Evergreen, a Massachusetts company, agreed to establish their first-ever United States based manufacturing facility here in Massachusetts. They did so, or are doing so, at Devens. They have now agreed and chosen to triple their size at Devens. Their next phase of expansion, right here in Massachusetts, a signature company in a signature sector, and we congratulate all of the folks at Evergreen and look forward to continuing to work with you...
We made a personal commitment to Evergreen for the sake of Evergreen, but also because we wanted to show that there are ways in which state government, in working together with private industry and with the utility companies, could begin to create a different kind of environment, a different kind of business climate here, to grow that sector, and it is happening. It's happening. Evergreen is one of the most prominent examples, but there are a whole host of examples."
--Governor Deval Patrick, April 7, 2008, boasting about state investment in Evergreen.
and Now...
"Evergreen Solar Inc. filed for Chapter 11 bankruptcy protection yesterday, completing a stunning reversal of fortune for a high-flying alternative-energy company that once seemed to herald a new era for the Massachusetts economy... At its peak, Evergreen employed roughly 900 people locally and attracted more than $50 million in state support, as its stock price soared above $100 a share.
Yesterday, Evergreen's stock closed at 18 cents. The company shuttered its manufacturing plant in Devens earlier this year and now has only 85 employees left. Massachusetts is one of its top creditors, owed $1.5 million in rent."
--Erin Ailworth, Boston Globe, August 16, 2011
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