Friday Cat Blogging from the LPS

Lucy

Have you been or were you ever

a member of the ______________?

Buzzflash:

"Four years ago, Janet Neff went to a lesbian "commitment ceremony" for her friend and next-door neighbor of more than two decades. Now, her nomination for a federal judgeship in Michigan is being blocked by religious zealot and right-winger Senator Sam Brownback (R-KS) for no other reason than his homophobia"

NSTA is morally bankrupt...

but getting richer all the time. From Orcinus:

Laurie David, one of the producers of An Inconvenient Truth, wrote a piece for today's Washington Post describing her efforts to make 50,000 DVD copies of that movie available to America's science teachers through NSTA.

They said no. And, more weirdly, they explained why. First, they said, they were afraid that if they started taking information from "special interests" like David, they'd have to take them from other groups, too. As though a private organization is obligated to accept and distribute any fool thing the Flat Earth Society may send them? As though they're not scientists, capable of sussing out the factual truth and relative educational value of any given piece of would-be curriculum? As though (as David points out) An Inconvenient Truth isn't already part of the required science curriculum in other countries, including Sweden and Norway?

That was bizarre enough, but then they got to their second reason: It might jeopardize their capital campaign. It turns out that NSTA gets millions each year from groups like Exxon-Mobil and the American Petroleum Institute -- who, in turn, are given access to American science classrooms to promote anti-global-warming propaganda with titles like "You Can't Be Cool Without Fuel." If they started telling kids the truth about global warming, they whined, that money might go away. And then how would that fine organization continue to support America's science teachers in their quest to instill their students with a passion for empirical truth, and teach the rigors of the scientific method to the country's next generation of technology leaders?

Memo to the Christian Coalition: The NSTA is for sale. For a mere million bucks a year, I'll bet you could get them on board with Intelligent Design, too.

Memo to parents: It might be time to find out if your kids' science teachers are members of this group, and have a word with them about it. If you -- or the teachers -- want to complain directly to the NSTA, the complaint form is here. They need to hear from everyone who still thinks that scientific truth shouldn't be auctioned off to the highest donor.

Talking Turkey

"Lo! the great Anarch's ancient reign restor'd,

Light dies before her uncreating word." (III 339-40)

Settle invokes the second coming of stupidity, urging,

"Thy hand great Dulness! lets the curtain fall,

And universal Darkness covers all." (III 355-6)

[Alexander Pope: Dunciad]

Alas, friends, it is that time of year. Let us not forgive Bush any sins, let us remember his vanity, which is, all things said and done, his stupidity.

See the Gore Vidal interview here.

Private Investment Funds begin

to really gather steam. This is no longer a phenomenon of microclimates. Here's a snippet from Le Monde today.

350 MILLIARDS D'EUROS.

C'est le montant total dont les fonds d'investissement disposent aujourd'hui pour investir dans le monde. En Europe, ils ont collecté 72 milliards d'euros en 2005 auprès de fonds de pension et de grandes fortunes. Depuis quatre ans, ces acteurs sont présents dans une acquisition d'entreprise sur quatre ou cinq.

3 600 SOCIÉTÉS.

C'est le nombre estimé d'entreprises françaises contrôlées par des fonds d'investissement (soit 6 % de l'effectif salarié du privé) en 2004, selon l'Association française des investisseurs en capital (AFIC).

DEUX-TIERS.

C'est ce que pèse la dette dans un rachat avec un montage en "Leverage buy out" (LBO). Les fonds n'apportent qu'un tiers de capital propre.

It's hard to say, but at some point this could put our stock markets into question, at least marginally. Something to watch, like youtube.

They Shoot Horses, Don't They?

Well, actually, they do. Of course, sometimes the horses hurt us too. For example, a group of striking hotel workers in Houston were trampled by horses. I would like to blame this action on the horses. Unfortunately, the horses were guided by a less logical animal: humans of the law-enforcement kind.



This is nothing new, of course. [update] What is more, as I just read over at mydd.com, it turns out that bail has been set at nearly 900,000 dollars [update #2: reduced to 1000 dollars each] for each of the persons arrested in the protest. That seems a little excessive, but, then again, going against the economic system has always been considered more criminal than personal violence. Here's the press release:

HOUSTON, Nov. 17 /PRNewswire/ -- In an unprecedented transparent attempt to severely limit the right to peaceful protest and freedom of speech of low-wage Houston janitors and their supporters, a Harris County District Attorney has set an extraordinarily high bond of $888,888 cash for each of the 44 peaceful protestors arrested last night. Houston janitors and their supporters, many of them janitors from other cities, were participating in an act of non-violent civil disobedience, protesting in the intersection of Travis at Capitol when they were arrested in downtown Houston Thursday night. They were challenging Houston's real estate industry to settle the janitors' strike and agree on a contract that provides the 5,300 janitors in Houston with higher wages and affordable health insurance.

The combined $39.1 million bond for the workers and their supporters is far and above the normal amount of bail set for people accused of even violent crimes in Harris County. While each of the non-violent protestors is being held on $888,888 bail ...

    * For a woman charged with beating her granddaughter to death with a
    sledgehammer, bail was set at $100,000;

  * For a woman accused of disconnecting her quadriplegic mother's breathing
    machine, bail was set at $30,000;

  * For a man charged with murder for stabbing another man to death in a bar
    brawl, bail was set at $30,000;

  * For janitors and protesters charged with Class B misdemeanors for past"
    non-violent protests, standard bail has been set at $500 each.

More than 5,300 Houston janitors are paid $20 a day with no health insurance, among the lowest wages and benefits of any workers in America.

Interesting, no? Revealing, no? Surprising--no. Repression of this sort often takes the form of "justice" reasonably meted out by reasonable judges (as long as you consider "reasonable" to be defined by the upper classes and the legal system they created). [end update]


I can't help but draw a parallel to Greg Grandin's book, an excerpt of which is in Counterpunch:

But before the crisis of 1982, there were the golden years between 1978 and 1981. Just as the international left flocked to Chile during the Allende period, under Pinochet the country became a mecca for the free-market right. Economists, political scientists, and journalists came to witness the "miracle" first hand, holding up Chile as a model to be implemented throughout the world. Representatives from European and American banks poured into Santiago, paying tribute to Pinochet by restoring credit that was denied the heretic Allende. The World Bank and the Inter-American Development Bank extolled Chile as a paragon of responsibility, advancing it 46 loans between 1976 and 1986 for over $3.1 billion.

In addition to money men, right-wing activists traveled to Chile in a show of solidarity with the Pinochet regime. Publisher of the National Review William Rusher, along with other cadres who eventually coalesced around Reagan's 1976 and 1980 bids for the Republican nomination, organized the American-Chilean Council, a solidarity committee to counter critical press coverage in the US of Pinochet. "I was unable to find a single opponent of the regime in Chile," Rusher wrote after a 1978 pilgrimage, "who believes the Chilean government engages" in torture. As to the "interim human discomfort" caused by radical free-market policies, Rusher believed that "a certain amount of deprivation today, in the interest of a far healthier society tomorrow, is neither unendurable nor necessarily reprehensible."

Friedrich von Hayek, the Austrian émigré and University of Chicago professor whose 1944 Road to Serfdom dared to suggest that state planning would produce not "freedom and prosperity" but "bondage and misery," visited Pinochet's Chile a number of times. He was so impressed that he held a meeting of his famed Société Mont Pélérin there. He even recommended Chile to Thatcher as a model to complete her free-market revolution. The Prime Minister, at the nadir of Chile's 1982 financial collapse, agreed that Chile represented a "remarkable success" but believed that Britain's "democratic institutions and the need for a high degree of consent" make "some of the measures" taken by Pinochet "quite unacceptable."

Like Friedman, Hayek glimpsed in Pinochet the avatar of true freedom, who would rule as a dictator only for a "transitional period," only as long as needed to reverse decades of state regulation. "My personal preference," he told a Chilean interviewer, "leans toward a liberal dictatorship rather than toward a democratic government devoid of liberalism." In a letter to the London Times he defended the junta, reporting that he had "not been able to find a single person even in much maligned Chile who did not agree that personal freedom was much greater under Pinochet than it had been under Allende." Of course, the thousands executed and tens of thousands tortured by Pinochet's regime weren't talking.

Hayek's University of Chicago colleague Milton Friedman got the grief, but it was Hayek who served as the true inspiration for Chile's capitalist crusaders. It was Hayek who depicted Allende's regime as a way station between Chile's postwar welfare state and a hypothetical totalitarian future. Accordingly, the Junta justified its terror as needed not only to prevent Chile from turning into a Stalinist gulag but to sweep away fifty years of tariffs, subsidies, capital controls, labor legislation, and social welfare provisions -- a "half century of errors," according to finance minister Sergio De Castro, that was leading Chile down its own road to serfdom.

"To us, it was a revolution," said government economist Miguel Kast, an Opus Dei member and follower of both Hayek and American Enterprise Institute theologian Michael Novak. The Chicago economists had set out to affect, radically and immediately, a "foundational" conversion of Chilean society, to obliterate its "pseudo-democracy" (prior to 1973, Chile enjoyed one of the most durable constitutional democracies in the Americas).

Where Friedman made allusions to the superiority of economic freedom over political freedom in his defense of Pinochet, the Chicago group institutionalized such a hierarchy in a 1980 constitution named after Hayek's 1960 treatise The Constitution of Liberty. The new charter enshrined economic liberty and political authoritarianism as complementary qualities. They justified the need of a strong executive such as Pinochet not only to bring about a profound transformation of society but to maintain it until there was a "change in Chilean mentality." Chileans had long been "educated in weakness," said the president of the Central Bank, and a strong hand was needed in order to "educate them in strength." The market itself would provide tutoring: When asked about the social consequences of the high bankruptcy rate that resulted from the shock therapy, Admiral José Toribio Merino replied that "such is the jungle of . . . economic life. A jungle of savage beasts, where he who can kill the one next to him, kills him. That is reality."

But before such a savage nirvana of pure competition and risk could be attained, a dictatorship was needed to force Chileans to accept the values of consumerism, individualism, and passive rather than participatory democracy. "Democracy is not an end in itself," said Pinochet in a 1979 speech written by two of Friedman's disciples, but a conduit to a truly "free society" that protected absolute economic freedom. Friedman hedged on the relationship between capitalism and dictatorship, but his former students were consistent: "A person's actual freedom," said Finance Minister de Castro, "can only be ensured through an authoritarian regime that exercises power by implementing equal rules for everyone." "Public opinion," he admitted, "was very much against [us], so we needed a strong personality to maintain the policy."

Jeane Kirkpatrick was among those who traveled to Chile to pay respect to the pioneer, lauding Pinochet for his economic initiatives. "The Chilean economy is a great success," the ambassador said, "everyone knows it, or they should know it." She was dispatched by Reagan shortly after his 1981 inauguration to "normalize completely [Washington's] relations with Chile in order to work together in a pleasant way," including the removal of economic and arms sanctions and the revocation of Carter's "discriminatory" human rights policy. Such pleasantries, though, didn't include meeting with the relatives of the disappeared, commenting on the recent deportation of leading opposition figures, or holding Pinochet responsible for the 1976 car bomb execution of Orlando Letelier, Allende's ambassador to the US, in Washington's Dupont Circle -- all issues Kirkpatrick insisted would be resolved with "quiet diplomacy."

Setting aside the struggles surrounding religion, race, and sexuality that give American politics its unique edge, it was in Chile where the New Right first executed its agenda of defining democracy in terms of economic freedom and restoring the power of the executive branch. Under Pinochet's firm hand, the country, according to prominent Chicago graduate Cristián Larroulet, became a "pioneer in the world trend toward forms of government based on a free social order." Its privatized pension system, for example, is today held up as a model for the transformation of Social Security, with Bush having received advice from Chilean economist José Piñera, also a Chicago student, on how to do so in 1997. Pinochet "felt he was making history," said Piñera, "he wanted to be ahead of both Reagan and Thatcher."

Friedman too saw himself in the vanguard. "In every generation," he is quoted in his flattering New York Times obituary, which spares just a sentence on his role in Chile, "there's got to be somebody who goes the whole way, and that's why I believe as I do."

And trailblazer both men were, harbinger of a brave and merciless new world. But if Pinochet's revolution was to spread throughout Latin America and elsewhere, it first had to take hold in the United States. And even as the dictator was "torturing people so prices could be free," as Uruguayan writer Eduardo Galeano once mordantly observed, the insurgency that would come to unite behind Ronald Reagan was gathering steam.

Today, Pinochet is under house arrest for his brand of "shock therapy," and Friedman is dead. But the world they helped usher in survives, in increasingly grotesque form. What was considered extreme in Chile in 1975 has now become the norm in the US today: a society where the market defines the totality of human fulfillment, and a government that tortures in the name of freedom.

That's a rather long excerpt, but you see what I mean. Somewhere in our psyche, "freedom" has been tweaked into coercion. "Pure competition," the ideal preached from on high by von Hayek, by Friedman, has become that article of faith which only faith--in direct contradiction to the weight of evidence--can sustain. And, as usual, the faithful are willing to resort to violence and repression to spread their gospel and defeat the infidels.

The repercussions of the "free" market place on the masses have left the masses to their own devices, which is to say it has left them to become subjects of a state in which they have little or no voice, either politically or philosophically. This is reflected in von Hayeks comments on Chilean dictatorship and mass murder: "My personal preference," he told a Chilean interviewer, "leans toward a liberal dictatorship rather than toward a democratic government devoid of liberalism."

So, while academics can find within such economic thinkers food for discussion of a liberating, egalitarian sort, when theory meets practice--and this is what is most important--these supposed "philospher kings" reveal their true colors.

So, in Houston as elsewhere, democracy remains dead. Friedman and von Hayek live on, however, riding the horses of "freedom."**





**Yes, I was going to put "apocalypse" here, but it was too obvious. Moreover, there are too many who actually think this. I'm sick of magical thinking and delusion.

Friday Cat Blogging From the Left Paw Society

DSC_0038.jpg, originally uploaded by andy_wallis.

Marx on Looney Tunes...

California Propositions

So it goes. I hate propositions anyway, so it is never really a "bad" thing when they don't pass.However, there are always a few that pass so one is forced to play the game. Somebody tell me why 1A passes and 87 does not. Captain, it's illogical. Well, except for the hundreds of millions of dollars Chevron and others spent to destroy 87.

Election Day Predictions...

First of all, TBogg:

Anything can happen.
Except Katherine Harris winning.
That's not gonna happen.

I try not to get too excited about elections because, like having sex with celebrities, it never really turns out to be as good as you expect it to be (I mean Salma Hayek was good...but I've had better). Each election is not the end all and be all of life, or as Duane Thomas once said about the Super Bowl, "If the Super Bowl is the ultimate game, then how come they're going to play it again next year?". With this election the Democrats will probably take over the House and make a dent in the Senate, but not so much that it will stop George Bush from doing what he damn well pleases because we're at "war", and he has people who will go to bat for him saying that the Constitution is not a suicide pact while in the background we'll see Uncurious George juggling flaming torches in a room rapidly filling with gas.

Here are some things that will happen:

* No matter how many seats the Democrats take in the House it won't be enough to keep the Republican echo chamber from pointing out that it most certainly is not a mandate, while all the time whining about the loss of control of the commitees.

* Joe Lieberman is going to win and it will somehow translate as support for the war and civility and common sense...and nobody in the media will point out what a sleazy campaign he ran.

* There will be at least one upset that the polls didn't predict and that will be held up as evidence that all polls are always wrong...except when they side with your candidate.

* There will be reports of brown people voting which will cause Michelle Malkin to go off the rails. Okay. Farther off the rails.

* Several Republican congressmen with ethical clouds hanging over them will be re-elected only to have to step down later when indictments are handed down.

* Matt Drudge will hype something completely trivial unless Madonna does something to distract him which makes him take his eye off of the ball.

* Within a week, embargoed news about the war will be released and people will find out things in Iraq are even worse then we suspect.

* Win or lose, George Allen's national aspirations are finished. Fertig! Verfallen! Verlumpt! Verblunget! Verkackt!

* Lots of recounts.

* Michael Steele will lose..but that won't stop Republicans from touting him to run with McCain in 2008 because they believe that they are just one Negro away from perpetual electoral domination.

* Harold Ford will lose because he is a lousy candidate who is transparently phony.

* If either Marilyn Musgrave or JD Hayworth loses I will be one happy boy.

* You will see one politician elected who does not represent your district or state and you will wonder what the hell is wrong with the people of that district or state. That politician will probably be Tom Tancredo.

* You should probably TIVO Katherine Harris' concession speech so you can play it later at parties.

* Pelosi fever! Catch it!

* The most banal no-content election blogging will come from Mary Katharine Ham who, while under the delusion that she is teh hot, will provide the kind of political insights one might expect from the assistant night manager down at Wet Seal.

* Your best source for a sense of what is happening will still be at Kos and MyDD. The best post-mortem will come from Digby. As usual.

* Dick Cheney will be spending election day hunting with his daughter who will not get shot in the face because she is quicker on her feet than a 78-year old man. Besides , it's not lesbian season in South Dakota ...yet.

* Blogger will go down throughout the day.

* I will be around, Blogger permiting.

And remember, as Yogi Berra once said: It's ain't over for Rick Santorum until the K-Lo posts.

Atrios is more precise in predicting Drudge's evil actions:

"This one's about as easy as predicting tomorrow's sunrise, but I predict that at some point around mid-morning Drudge will come up with some story about suspected voting shenanigans which faults "urban Democrats" and that story will quickly come to dominate all election day coverage of voting problems.

Because, Matt Drudge rules their world."

Of course, he speaks about Drudge, but, really, Drudge is only as powerful as the media that listen to him.

They all listen to him.

I predict that the Democrats will win the house and quickly fall victim to the Republican noise machine. I predict that Dems will be campaigning for McCain in two years. I predict that Dems will begin some important hearing against Crime, Corruption and Page-diving, but the party as a whole will abandon the investigators and Upholders of Truth, therefore caving in to the Republicans who "own" the media. I predict that U.S. troops will remain in significant numbers in the Middle East and that posse comitatus is further weakened. I predict that popular involvement in elections continues to grow. I predict that Ken Mehlman will be outed in some significant way. I predict that Obamarama, no matter how milquetoast and conservative that movement is, "takes over" the country according to the media. I predict that Hillary doesn't make it out of the primaries. I predict that Borat does a sequal that is not very funny. I predict that Blair has to leave his post earlier than he stated.

Freedom? Yes. Vote.

http://www.youtube.com/watch?v=gr5tx0lcyQc

this picture says it all..

Thanks, Mr. Fish.

Friday Cat Blogging From the LPS

DSC_0034.jpg, originally uploaded by andy_wallis.

Left Paw Society

Europe Tackles Obesity Epidemic...

It is interesting to note how the EU is approaching obesity. 1) They are beginning to attack it before it becomes as grave as in the U.S.; 2) They understand it as a systems issue and not one entirely related to personal responsibility. Here's a quote from a reuters story:

High fat, energy dense diets and sedentary lifestyles over the last 20 to 30 years, along with economic growth, urbanization and the globalization of food markets have contributed to expanding waistlines around the globe.

The November 15-17 meeting in Turkey, which will include ministers of transport, environment, education and finance, will look at measures to improve the consumption of healthy foods, to increase exercise in schools and the work place and to involve health systems in dealing with the epidemic.

It will culminate in the adoption of a European Charter on Counteracting Obesity which will propose action plans and includes calls for political commitment. (Reuters)

Friday Cat Blogging from the Left Paw Society

DSC_0043

The Nexus of Misogyny, Arms, Fascism

The last couple of weeks have brought numerous articles of import to the web. I read Stan Goff's piece on fascism at truthdig.com. I read, at alternet.org, Burbick's article on gun culture. I was looking at the "comfort women" of the Fascist Japanese Empire. In print media, I have been teaching My Year of Meats in class.

So I was intent on bringing together Goff and Burbick's works in a post of my own. I was taking notes, reading more, just trying to be a flâneur. --In the process, I have become an addict of de.licio.us and my tag cloud kind of says it all:

Anyway, and fortunately, I didn't write anything because Dave Dneiwert did, and did it much better than I ever could.

All wickedness is but little to the wickedness of a woman. ... What else is woman but a foe to friendship, an unescapable punishment, a necessary evil, a natural temptation, a desirable calamity, domestic danger, a delectable detriment, an evil nature, painted with fair colours. ... Women are by nature instruments of Satan -- they are by nature carnal, a structural defect rooted in the original creation.

-- Malleus maleficarum (The Hammer of Witches), published by Catholic inquisition authorities in 1485-86

The Freikorpsmen hate women, specifically women's bodies and sexuality. It would not be going too far to say that their perpetual war was undertaken to escape women; even the motherly battlefront nurse is a threatening intrusion in the unisexual world of war. This hatred -- or dread -- of women cannot be explained with Freud's all-purpose Oedipal triangulation (fear that heterosexual desire will lead to punishment by the father, homosexual yearnings for the father, or some such permutation of the dramatic possibilities). The dread arises in the pre-Oedipal struggle of the fledgling self, before there is even an ego to sort out the objects of desire and the odds of getting them: It is a dread, ultimately, of dissolution -- of being swallowed, engulfed, annihilated. Women's bodies are the holes, swamps, pits of muck that can engulf.

--Barbara Ehrenreich, from the foreword to Klaus Theweleit's Male Fantasies

Where are they coming from, these violent men? The right-wing terrorists like David McMenemy. The onslaught of damaged males inflicting violence on women in dramatic and public ways. It all seems so new, so sudden. And yet so familiar.

What is most striking about this seeming trend is how abstract the women victims are for so many of the perpetrators. Both of the deranged school shooters in Pennsylvania and Colorado simply picked the schools at random, and selected girls as their victims retributively, for supposed harm done to them in the past by other females. All of them indicated a long-sweltering rage at women.

Read the whole thing.

If you don't what this means, then

you're probably a) not liberal b) not a blogger, just a blog reader c) Republican. If you marked B, then you pass. Good job!


--AZ-Sen: Jon Kyl

--AZ-01: Rick Renzi

--AZ-05: J.D. Hayworth

--CA-04: John Doolittle

--CA-11: Richard Pombo

--CA-50: Brian Bilbray

--CO-04: Marilyn Musgrave

--CO-05: Doug Lamborn

--CO-07: Rick O'Donnell

--CT-04: Christopher Shays

--FL-13: Vernon Buchanan

--FL-16: Joe Negron

--FL-22: Clay Shaw

--ID-01: Bill Sali

--IL-06: Peter Roskam

--IL-10: Mark Kirk

--IL-14: Dennis Hastert

--IN-02: Chris Chocola

--IN-08: John Hostettler

--IA-01: Mike Whalen

--KS-02: Jim Ryun

--KY-03: Anne Northup

--KY-04: Geoff Davis

--MD-Sen: Michael Steele

--MN-01: Gil Gutknecht

--MN-06: Michele Bachmann

--MO-Sen: Jim Talent

--MT-Sen: Conrad Burns

--NV-03: Jon Porter

--NH-02: Charlie Bass

--NJ-07: Mike Ferguson

--NM-01: Heather Wilson

--NY-03: Peter King

--NY-20: John Sweeney

--NY-26: Tom Reynolds

--NY-29: Randy Kuhl

--NC-08: Robin Hayes

--NC-11: Charles Taylor

--OH-01: Steve Chabot

--OH-02: Jean Schmidt

--OH-15: Deborah Pryce

--OH-18: Joy Padgett

--PA-04: Melissa Hart

--PA-07: Curt Weldon

--PA-08: Mike Fitzpatrick

--PA-10: Don Sherwood

--RI-Sen: Lincoln Chafee

--TN-Sen: Bob Corker

--VA-Sen: George Allen

--VA-10: Frank Wolf

--WA-Sen: Mike McGavick

--WA-08: Dave Reichert

Friday cat (and fat) blogging

Well, another Friday rolls around and my blogging is seriously diminished right now. At least I have cats. I also captured an interesting person seated on a fire hydrant. It doesn't look comfortable.

Stiglitz vs. Phelps

I read this Q&A with J. Stiglitz and thought it a much more thoughtful and interesting read than Phelps, who happens to have won the Nobel Prize. This is normal, unfortunately.

Stiglitz:

Q. Since the beginning, economics has sought to perfect “economic well-being” as in, lay down the conditions to maximize well-being and explain faltering well-being. What does this well-being entail? There should be a definition of economic well being that functions independently of capitalist or socialist classifications. Would you care to explain your definition of the one entity that guides all economic theories: “economic well-being”?

Himanshu Kothari
United States

A. There is no simple measure of economic well-being, and unfortunately, the standard measure, gross domestic product per capita, is misleading. This is important, because what we measure affects what we do; and if we try to “maximize” the wrong thing, there can be serious adverse consequences.

I stress the importance of equitable and sustainable development and growth. GDP can be going up, yet most individuals can be worse off (as has been happening in the United States during the past 5 years).

Similarly, GDP can be going up, yet standards of living going down, as the environment becomes degraded, so much so that life expectancy can even decrease. When I was chairman of the Council of Economic Advisers, I pushed for the use of Green GDP, where account is taken both of the depletion of natural resources and the degradation of the environment.

If a country’s growth is based on depleting renewable natural resources, its growth will not be sustained. Neither will growth be sustained if it is based on borrowing—when debt is used to finance consumption, not investment. Argentina’s growth in the early 90s was based on debt financed consumption, and selling off its national assets (often at unreasonably low prices). The inevitable day of reckoning came, and the country’s economy collapsed. Today, many are worried about America, whose growth is based on borrowing more than $3 billion a day from abroad.

GDP may be a misleading measure for another reason: it measures the value of what is produced in the country, not the income of the citizens of the country. When a developing country opens up a mine, with low royalties, most of the value of what is produced may accrue to the foreign owners; and when account is taken of the environmental degradation and resource depletion, the country may actually be worse off. [Keep reading...]

Phelps:

Dynamic Capitalism, by Edmund Phelps, Commentary, WSJ: There are two economic systems in the West. Several nations -- including the U.S., Canada and the U.K. -- have a private-ownership system marked by great openness to the implementation of new commercial ideas coming from entrepreneurs, and by a pluralism of views among the financiers who select the ideas to nurture by providing the capital and incentives necessary for their development. Although much innovation comes from established companies, ... much comes from start-ups, particularly the most novel innovations. This is free enterprise, a k a capitalism.

The other system -- in Western Continental Europe -- though also based on private ownership, has been modified by the introduction of institutions aimed at protecting the interests of "stakeholders" and "social partners." The system's institutions include big employer confederations, big unions and monopolistic banks. ... The system operates to discourage changes such as relocations and the entry of new firms, and its performance depends on established companies in cooperation with local and national banks. What it lacks in flexibility it tries to compensate for with technological sophistication. So different is this system that it has its own name: the "social market economy" in Germany, "social democracy" in France and "concertazione" in Italy. [hat tip to http://economistsview.typepad.com/] [Keep reading]

Phelps works his way through the usual clichés about U.S. vs. Europe. What is surprising is that it is so...unsurprising. Here is is brilliant conclusion:

Actual capitalism departs from well-functioning capitalism -- monopolies too big to break up, undetected cartels, regulatory failures and political corruption. Capitalism in its innovations plants the seeds of its own encrustation with entrenched power. These departures weigh heavily on the rewards earned, particularly the wages of the least advantaged, and give a bad name to capitalism. But I must insist: It would be a non sequitur to give up on private entrepreneurs and financiers as the wellspring of dynamism merely because [of the imperfections from these departures]. I conclude that capitalism is justified -- normally by the expectable benefits to the lowest-paid workers but, failing that, by the injustice of depriving entrepreneurial types (as well as other creative people) of opportunities for their self-expression

Capitalism is justified because otherwise entrepreneurial types would be creatively stifled. Ok. Deep. But he also says that capitalism plants the seeds of its own degredation. Really, what is one to conclude from this abstraction?

Friday Cat Blogging from the Left Paw Society