My Response to the venerable Matthew…

This post was written by Red Jed on March 5, 2009
Posted Under: General

Ok, Matthew has forced me to take this more seriously than I originally intended.  First, let me say that I appreciate Matthew’s comments regarding the infancy and maybe subsequent very late-term abortion of my blogging career.  I have taken to heart his valid criticism regarding the format of my soapbox.  Also, I will address his concerns point-by-point with references that explain my point of view which is not as kindergarten as some would think.  

Regarding the originality of the idea:  I thought a command economy directed by the needs of the country and limited by potential tax revenue was a novel thought.  I at least thought the juxtaposition of the buzz words would tantalize the progressives.  Just be glad I didn’t call for getting back on the gold standard (which I think we should slowly do–like a 50 year plan).  There is a good reason my ideas aren’t entertainingly radical:  they are mostly in-step with conservative ideology that, by nature, doesn’t change as rapidly or vapidly as our tv-fixed brains might prefer.  Despite the revisionists opinions, the Reagan and Clinton tax cuts worked (yes an oversimplification, but not an untrue one), the 1st Bush tax increase (GHWB) was a failure that cost him re-election (remember–its the economy, stupid).  What exactly is novel about the tired tax-and-spend agenda the President is advocating?  I would argue it is the unbelievable scale and nothing more (I admit, I have not read the proposed budget; I am speculating–and I did start reading it today).  By the way, President Obama promised in his non-state of the union address that there was not one dollar of earmarks in the stimulus package.  Note:  everyone agrees there are earmarks and plenty of special pork to go around.  Don’t let me paint this as Rep v Dem either.  Instead of standing up to the earmarks (which seem consistent with a conservative ideology), greedy republicans are coming up with and defending their own spending in the bill just like they have become accustomed to.  The point is that Barrak Obama is a liar just like EVERY previous president, which in my opinion, is not change I can believe in (I did not vote in this previous election).  Having said that, I want him and the new government to spend as little money as possible because I don’t trust professional politicians to manage it.  I didn’t trust GWB/Cheney to tap my phones, why would I trust this government with trillions of dollars.

Yes, I realize the Federal government has the constitutional power to tax the public.  This is why my plan focuses on federal taxes and possibly revamping a tax code that is so complicated that CPAs and lawyers are routinely employed to interpret it.  Surely, this level of complication is not what the founding fathers would see as prudent.  How do you have time to pursue your own happiness when you have to tally up all the deductions and worry about whether its even legal?  

The second line of the twenty-fourth amendment is completely relevant, but in my non-professional opinion, it should be interpreted not as a widely sweeping power (as it has been), but in terms of what it pertained to.  To me, it is a difficult stretch to equate the obvious problems  with a poll tax(these are FREEDOM problems) to the complicated and nuanced problems associated with broad, black hole topics like “education.”   Matthew correctly points out that this amendment has been used to expand the power of the Federal government to previously unfathomable levels.  It is not ignorant to disagree with interpretations of the constitution as almost all Supreme Court cases contain written, dissenting opinions.  Furthermore, because the document is considered dynamic, it is not unreasonable for me or anyone else to demand proper and sober interpretation and even reversals when we go down the wrong path.  Yes!  I just compared the injustices done to black Americans to the potential injustices that could be done to all of us in a Federal government drunk with power.  Fragments of one amendment do not necessarily trump fully realized and different amendments even if the fragments chronologically come later.  There has been no amendment that declares the tenth amendment unconstitutional and it is worded plainly!  The tenth amendment is part of the bill of rights and the twenty-fourth is not.  Which do you think is more fundamental?  I stand by my plea to tear down any unconstitutional colossus. 

I will not apologize for supporting state’s rights.  This is a core belief in my frame of reference.  President Obama recently used a state’s rights argument to end raids on medical marijuana clinics in California, however he has chided Governors for any attempt to refuse stimulus money.   Bush no doubt used loose interpretations of the constitution to justify his justice department’s now defunct raiding power in the same clinics.  Claiming state’s rights on one issue and rejecting it in another with the constitution draped all over you is convenient and dishonest and all politicians do it.

I’m not sure what the problem with local education is.  Matthew is still bitter because he feels he got the short shrift growing up in a backwards town.  I couldn’t disagree more (I like weatherford myself).  I grew up in public school in San Antonio, then private school there, and finally public school in Bowie, TX, and then to several colleges.  All were different experiences.  I have noticed people like Matt who hate where they come from leave and go somewhere they are happier.  Also, as a student and a teacher, I notice that kids who actually want to learn have no obstacles in their way.  There is some responsibility for the student to learn despite the blathering  rednecks sitting next to them.  It is true that its easier to be a lazy student in Bowie than in a more demanding atmosphere.  However, who is to say that the mindset in a community is inappropriate (This is elitist).  Its easy to pick out the shortcomings, but seeing the beauty of a rural education is more subtle.  The diversity among communities is an American strength, not something to ridicule.  The “regional neuroses” of a Bowie, TX still manages to graduate future doctors, lawyers, pro athletes, veterinarians, farmers, speed freaks, and anything else you can imagine.  The desire to re-route rural attitudes is as pompous as it is futile.  Do we really want big brother telling Bowie Texas they have to do it the same as Seattle Washington?  Matt has identified somethings in education he wants to avoid and has moved to one of the best school districts in the area in an attempt to give his son a head start.  This is exactly what American freedom is about.  However, Matt, if you ever want your son to be a rancher or an auto mechanic, he might actually be at a disadvantage in Plano.  A one-size-fits all approach is, in my opinion, not best for a country as diverse as America; especially since we can come and go as we please.  There is nothing wrong with a father wanting his child to have a local education, as there is nothing wrong with a family moving to New York and paying those taxes for that local education.  The idiots do not need to be protected from themselves or each other.  In fact, with the glut of idiots in America, the most expensive program I could think of would be a National Idiot Control.  I prefer a more Darwinian approach.

Ok, feeling better now.  I’m positive the credit crisis is not fully an illusion, but the notion that all credit markets have dried up is not accurate.  Specifically, people are still getting 0% interest plus incentives purchasing automobiles.  I’m specifically referencing Ed Wallace because last May he absolutely outed the speculation in deregulated dark markets that led to $4.00/gallon gas while everyone including Goldman Sacs was calling him a fucking ignorant asshole and promising it was just a supply problem.  I believe his dogged reporting on the matter forced changes that led to the eventual slashing of oil/gas prices.  Also, it is no secret that the housing markets are bad in some places but less affected in others like our own Texas because of our relatively modest consumer debt coupled with housing values that weren’t unreasonably over-inflated when this all started.  I appreciate the perspective of Matt as he peruses unqualified loan after unqualified loan, but I believe there is plenty of money to lend to people with good credit, however I do agree that people are simply not making as many major purchases.  Regardless of the reason(s), people are unable or unwilling to spend as much right now and I’m not convinced that is a horrible thing.

Matt, there simply ARE good Americans who run their own businesses.  I think you are one of them.  There have always been assholes but this is not a uniquely American trait.  The exploitation of the American worker or the Indian worker or any other worker is a function of the fact that we are a nation of laws.  Business routinely and intentionally challenge the boundaries of those laws in order to gain a temporal competitive advantage while the cases are being decided because that is the system.  I think President Obama is correct to end tax loopholes for businesses that ship jobs overseas.  I couldn’t agree more.  I think NAFTA + CAFTA = SHAFTA (I got that from a knife salesman).  There is no doubt that Americans can and should shoulder a bigger moral burden when it comes to business practices for we are still the standard bearer for the entire world.  All capitalists are not evil.  I categorically reject that notion and find your statement, “The history of American entrepreneurship does not exist separately from the history of economic exploitation of working classes, who are often actively kept at stagnant wage levels,” to be a cynical and gross misstatement.  I would speculate that most American business employ Americans at reasonable wages.  How else could the standard of living be better in every succeeding generation (except for ours) if all our labor was enslaved and all our wages were stagnant?  I do agree that many abhorrent business practices have historically found their laboratory in the heart of American business, but it is an unavoidable evil of progress.  Look at our daily problems:  my $5 coffee is too bitter; that public bathroom smelled a little stinky; did that asshole just light a cigarette near my baby!  What I’m saying is that it is directly because of naked capitalism (even in its most abrasive forms) that have bestowed upon us the most diverse freedoms and arguably highest standard of living with almost limitless possibilities for the motivated.  Yes, I agree that corporations have almost limitless greed, and the motivation for engaging in dubious practices stems from the need to “maximize shareholders’ profits.”  I’m not saying there aren’t problems with the system for it is the very system that makes it necessary to have jobs or some form of income.  Some people are ill-equipped to handle the system.  But America is not just faceless corporations, it is obviously also the smaller business; the dentist, the law firm, the energy shake shop on the corner, the ebayer.  Not all people wish to participate in the entrepreneur system or the corporate system.  Those people can teach or write tickets or become professional students.  That is what America is about–freedom.  Freedom supercedes equality and that is something hard for some progressives to agree with.  There is always a balance between freedom and equality and the two are not always compatible.  I would rather be free than forced to be equal to everyone.  I don’t know if that last part makes sense, but it will be my next blogging topic. 

I am in no way the entrepreneur our nation needs–nor do I desire to be.  But, thats ok because there are plenty of them.  There is nothing wrong or hypocritical in my support of them.  I’m not a soldier either, but I want our soldiers to be professional bad-ass motherfuckers.  I’m not a doctor, but I acknowledge the need for competent doctors in America.   My paycheck comes from state tax revenue (and some filthy federal tax money–which gets taken right back out) but mostly from tuition paid by students like myself.  In fact, my paycheck basically covers my tuition and not much more.  Right now, I’m paying over $5000 this semester just to write my own thesis, so don’t give me a lecture about where my fucking dime comes from.  I’m currently making personal sacrifices to try to eek out a slightly better future for myself.  Also–backtracking a bit, if education was that bad in America, why do we have the best university system the planet has ever seen (barring the one in Atlantis, of course)?  

In closing, I’d like to send a couple of shots across Matt’s bow.  Matt is one of the smartest dudes any of you could ever meet, he never fails to deliver insightful, complex and layered arguments.  He is better read than anyone I personally know.  However, he chooses to use his prowess as his fortress.It justifies his admitted elitism.  Embittered by the unfairness of life-in-general, he focuses on the shortcomings of anyone he disagrees with in order to discredit their message.  He has thrown out more babies than bath water.  Alternatively, he gives a generous pass to his philosophical messiahs.  What I have outlined is a plan based on my belief that all politics and politicians are corruptible for power, but that with the right incentives, we as a country can work together despite our imperfections.  

What I don’t understand is how anyone including someone as smart as Matt could believe for one second that the money being contemplated by our corrupt Federal government will be efficiently transformed into near-utopian results.  By the way, I got “Newsflashed” on a recent email.  Well, Newsflash–all this spending is bullshit and it has the potential to bankrupt the country–even if it doesn’t, it will again directly expand the power of the federal government.  So then, what happens when we elect another GWB?What happens when a less equipped steward comes along who has line-item-veto by then?  Will we want a do-over on this whole government power thing?  Maybe, because you can always recall a tax break, but it is almost impossible to reverse course on spending.  Once its in the budget, it historically just increases and those spending increases provide the precedent and legitimacy for future spending and government growth. The power of the executive branch grows as well.  What we are embarking on is a Government Bubble that is sure to pop at some point.  Everyone who is intellectually honest with themselves has to acknowledge a real risk with a plan that deliberately spends money that hasn’t even been borrowed or printed yet.  The money does not even exist yet.  How is that sustainable?

 

Love

Reader Comments

Part I (due to an impending dentist appointment):

“I prefer a more Darwinian approach.”

Of course you do. Because you feel certain that you would come out on top in such an arrangement. This is a common libertarian conceit, that in the Darwinian maelstrom, they will be the ubermenschen. Now, just for a moment, suppose that you were not so certain. Suppose that the story of your life, and even your parents’ lives, is of exploitation by classes you were not born into. The perspective changes dramatically.

“Regardless of the reason(s), people are unable or unwilling to spend as much right now and I’m not convinced that is a horrible thing.”

I have no problem with people being thrifty. As I’ve said many times, we got ourselves into this mess because of consumerist greed, promoted by patriotic-shopping proponents like Reagan & GWB. But if you are someone without many means, and you want to start a business, there simply are not as many available funding options as there were a year ago. Not even close. Until the liquidity crisis is resolved, this whole nation-of-entrepreneurs project is an academic question. Obama is in the unenviable position of trying to resolve that crisis. I have no idea if he will succeed, but I hope he does.

“There is always a balance between freedom and equality and the two are not always compatible. I would rather be free than forced to be equal to everyone. I don’t know if that last part makes sense, but it will be my next blogging topic.”

Now we’re getting somewhere. If there is inequality, how can there possibly be freedom? Freedom for those on the right side of statistics, perhaps, but not for the rest. There’s a corollary to this dilemma further down, for those with a Biblical bent.

“if education was that bad in America, why do we have the best university system the planet has ever seen?”

The best university system the planet has ever seen is only available to those who can afford it. Yes, there are government grants for high achievers (often opposed by conservatives), but by and large you take a look at a family’s income and you can make a pretty educated guess as to whether or not their children will be going to college. Of course there are exceptions, just as there are people who come from families with means who do not take advantage of the privileges bestowed upon them. But in the aggregate, our education system has a heavy class exclusion component.

“Embittered by the unfairness of life-in-general, he focuses on the shortcomings of anyone he disagrees with in order to discredit their message. He has thrown out more babies than bath water. Alternatively, he gives a generous pass to his philosophical messiahs.”

That’s an interesting statement. Which philosophical messiahs in particular are you referring to? If memory serves, I have never met a sacred cow that I didn’t feel could use a few swords hanging out of its side.

One must always consider the source of an argument. The world of ideas that are free of the agendas & prejudices of their creators does not exist. If I drive through Preston Hollow and see acres of McCain/Palin signs, that information should be taken into consideration, not merely thrown out.

If one notices that a large number of fervent small-government, pro-business rants come from people with tenure at publicly-funded universities, or have a distinct lack of entrepreneurial achievement, one should ask the question why. Especially if they also tend to be the same people who bravely did not sign up for the war which they so enthusiastically endorsed. The medium, in many ways, is the message.

And so I’d like to throw another bathtub out with the baby, if I might, and ask why it is that so many people who believe in unleashing the full cruelty of life’s inherent inequality upon the populace also consider themselves to be Christian? What precisely is the connection between Ayn Rand and Jesus? I really would like to know that.

“What I don’t understand is how anyone including someone as smart as Matt could believe for one second that the money being contemplated by our corrupt Federal government will be efficiently transformed into near-utopian results.”

I will be the last person on earth to ever suggest that a utopia of any sort is possible. What I seek to achieve is an understanding that social Darwinism comes with a vast number of downsides, which I believe outweigh the rewards. This drive to reward those who have skill sets that make them economically dominant completely ignores the large number of people who for a variety of very good reasons will not be wildly successful entrepreneurs. These people are the majority. What of them, in your ubermensch (dare I say) utopia? Do you simply believe that they will accept their underclass role in the face of the blinding brilliance of their bosses?

More when I get back from the goddamned dentist…

#1 
Written By matthew on March 5th, 2009 @ 2:01 pm

Part II (goddamned dentist):

Yes, the unfairness of life troubles me. It has troubled many greater thinkers than I over the centuries. People have given their lives so that inequalities can be redressed. I find this noble, though I realize others do not.

It is currently empirically impossible to determine what makes one human being more prosperous than another. There are genetic, environmental, political & religious factors all intermingled with the storyline we tell ourselves about those who saw what they wanted and got it.

It’s no secret that people are corruptible. Nor is it big news that the good of the one may not line up squarely with the good of the many. What is noteworthy is that the potential evil of humanity can be used as an argument both for and against big government. Over the two centuries of our nation’s existence, we have repeatedly been put in the position of choosing our oppressor. Laissez-faire government leads to corporate exploitation, countered by government intervention on behalf of public outcry, followed by governmental excess, which generates public outcry, in turn used by corporations to erode regulations and maximize their profits. The wheels keep spinning round.

I once had an opinion on success & personal responsibility not dissimilar from your own. But two important factors have fundamentally changed my outlook: Experience and empathy.

I have met people who have consistently tried their best and consistently failed. I have met people who would have to try very hard to lose the socioeconomic status they were born with. Inequality exists in places I never dreamed it could. It is admittedly difficult for white middle class males to know this intuitively. We have to listen. We have to put ourselves in the shoes of another. If we fail to do that, we do not understand humanity, apart from ourselves and our self-selected peer group.

And if we truly do allow ourselves empathy, then indifference to inequality is impossible. I can no more shrug at a casualty of social Darwinism than I can inject myself with a vial of HIV. Where inequality exists, I am against it.

When I have been in a position to right a wrong, I have done so. When it has been beyond my power, I have taken note and looked for ways that it can be otherwise addressed. I am one who has both benefited from and been victimized by inequality, as have many of us.

As you pointed out, I moved to a good school district so that my son could have a chance at a better education than I got. I could afford to. But I remember the kids next door to our old house in Dallas. Their parents were unlikely to ever be able to move out of the fetid DISD. It pains me that those kids won’t get the same quality of education as my son. What kind of society would we be if we didn’t care about our neighbors?

And that’s what this really boils down to. Me vs. us. And I do not exist independently of all others. The people I ignore in pursuit of my goals do not cease to be. They shape the culture I live in, and the world my son will have to navigate as an adult. A rising tide raises all boats, but only if it’s actually the tide, and not the water level in the special VIP marina. We must do better so that I may do better.

That said, I am not a pure welfare stater. I only give to the bums without legs. A truly free society is something that must be worked for, by those who are able. But we must not leave behind those who are not.

So what does all this have to do with the economic crisis? It is my opinion that we have been putting “me” before “us” for far too long, and it has come back to bite us. There is precedent for public deficit spending to help the many at the short-term expense of the few. I don’t like it, but keep in mind that this is a reactive measure against a marketplace so suffused with greed that it could no longer stand. And that is not Obama’s fault. It is, however, his job to help stanch the bleeding. The government, for better or worse, is the only voice the many have against the corporations. I for one want to see what it says, even if I do not agree with all its conclusions. And if it is wrong, we’ll all hear about it soon enough.

#2 
Written By matthew on March 6th, 2009 @ 10:09 am

But let’s address specific policy for a moment.

I do not, by any stretch of the imagination, support every initiative put forth by the new administration and Congress. For one thing, there are some companies that desperately need to die. General Motors is foremost among them. If we are going to help ailing corporations, we should be directing the aid to those that have an actual chance at survival. GM has proven for 30 years that it is incapable of reform, and it is getting nothing but worse. Let it die.

In fact, the Big Three are the chief reason why we did not adopt a national healthcare system in the 1930s & 1940s when most other industrialized nations did. Detroit’s political power at that time was strong enough to leave behind the many for the profits of the few, and that is one more chicken that is coming home to roost.

I do not agree with expanding the office of faith-based initiatives. I like my church & state in separate boxes, thank you very much. And fuck you, Rick Warren.

I do not believe there should be open-ended aid to banks. Those that show improvement can be helped further, those who merely swallow the money and ask for more need to die. The collapses of large financial institutions will be painful, but these are the same corporations who have flagrantly railed against any consideration of the public good in relation to their activities.

I think keeping Wall Streeters like Geithner on board was a bad idea. They are less likely to stand up to their old friends, and that undermines public confidence in the administration’s plans.

In short, I like a lot of what I see coming out of the new administration, but by no means all of it. And to be frank, I haven’t had time to comb over every line item in the new budget to determine its worthiness. But I do know that I feel far more confident with Obama at the helm than I did when Numbnuts McFlightsuit was running the joint. Time will tell if I get nostalgic for the old bastard.

In regard to targeted tax incentives vs. spending, I have no fundamental disagreement. I have to assume that Obama’s assessment showed that direct investment would be more effective. He could well be wrong. We shall see.

#3 
Written By matthew on March 6th, 2009 @ 10:25 am

What do you make of this?

http://fish.blogs.nytimes.com/2009/03/08/neoliberalism-and-higher-education/?em

Not the last quarter, which veers wildy off-topic IMHO, just the first 3/4.

#5 
Written By matthew on March 9th, 2009 @ 1:46 pm

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