Consumer prices excluding food and fuel were flat for the third straight month. And on a yearly basis this so-called core inflation fell to 0.6% and this the lowest rate since records began in 1957. Indeed it would be safe to say we haven’t seen anything like this since at least 1937. That was the last year that the Republicans really screwed up the economy by intimidating FDR into briefly curtailing New Deal spending.
The New Deal was so successful that it has taken them until now to cripple the economy to the point that we are again on the edge of complete collapse.
Republicans have always portrayed FDR’s programs as just a welfare state giveaway, counting on the fact that few Americans are concerned with history.
In fact there was so much infrastructure built, so much development done and so many reforms put in place that you can’t find a place to stand in the US where you can’t see its effects.
The Dust Bowl was Republican policy writ large. Desertification of most of the heartland of the US could easily have come to pass without “big government” intervention. Congress was finally moved to pass the required legislation when the noon day sun was obscured by a dust cloud over Washington DC.
The Republicans are at it again with Sarah Palin twittering about monetary policy. The talking point is that gas and food are “way up” so the government is lying about inflation. In fact gas is not up compared to the recent past and food is up only modestly. They have a lot of nerve anyway since gas and food are hard for the tea baggers to afford as a result of policies Republicans have been pushing for thirty years.
The truth is that what the Fed is doing is not good economic policy but it’s the only oar we have in the water. And they may only be postponing the inevitable by a short time. The reforms necessary are not even being talked about by any serious people. The serious people are all talking about austerity, that would be austerity for you and not for them.
Erskine Bowles, the nominal Democrat on the deficit commission stated today that we must cut spending as we can’t balance the budget just by raising taxes. Erskine said in a tv interview, that “We’d have to raise the top marginal tax rate to 80%” . BINGO! Roll back the Reagan tax cuts. Why didn’t I think of that? I guess because I’m not a rich guy working for really rich guys. Oh wait, he said we can't do that. Bummer.
Rand Paul said something out loud that should clue you in on the new normal. “We all either work for rich people, or we sell stuff to rich people. So just punishing rich people is as bad for the economy as punishing anyone.” Lately he’s claimed there are no rich people or poor people that we are all interconnected and are just the same. I think that last one proves he hasn’t given up smoking from the “aqua Buddha” pipe. www.prairie2.com