Tuesday, July 15, 2008

The point is to Get Off Oil altogether

ILLUSTRATED: The oil drilling issue is simply about letting the petroleum industry make every last nickel it can. We need to get off oil for the sake of the planet, the economy, and national security.

Human brain tissue is the most important natural resource in solving the energy problem.

This oil drilling issue is similar to the prescription drug benefit. It is a government giveaway to a particular industry that is being sold as a populist measure. The Medicare Part D disaster is simply a giveaway to the drug industry. It violates free market principles in that the government cannot use its scale to bargain for lower prices.

Oil drilling is the same thing. The fuel cost crisis is just an excuse to begin drilling off the coast, something that will not come online for at least five years. In five years, there can be scientific breakthroughs that will transform our economy and market for science jobs. It will save the planet from carbon emissions, and give us a freer hand in global politics.

Monday, July 14, 2008

Is George W. Bush a New Dealer?

ILLUSTRATED: Reaganism is dead. No one can believe anymore in the unfettered marketplace. Democrats simply need to include these needed financial bailouts as part of our meta-theme of government as a public trust that serves the public interest.

A few months ago I questioned what Ronald Reagan would think of Treasury Secretary Paulson's new regulatory scheme. At that point it seemed that the conservative narrative about government regulation being the enemy of growth seemed severely compromised. But now, this bailout of Fannie Mae and Freddie Mac is like the second coming of FDR. Continuing with the back to the 30s theme, in the past few days there is a run on the bank IndyMac that just got taken over by federal regulators.

I really don't know what the conservative movement has to say about this. I like to say that conservatives value property rights, efficiency, and order. Liberals value human rights, equity, and justice. We have a Republican administration taking over financial institutions, and it is obvious that people would lose their property otherwise. I don't know how conservatives square this one.

Democrats simply need to maintain that government is there to ensure a fair market that even the little guy doesn't get taken advantage of.

Saturday, July 05, 2008

Distribution of Resources

ILLUSTRATED: The crisis of mass foreclosures and discounted resale is a massive redistribution on wealth…upward. Don’t be afraid of being called a demagogue for talking about the distribution of resources. The GOP wants an economy of get what you can and keep it. Dems want an economy of the public and private sector cycling resources between each other beneficially.

Real property is where most Americans have most of their wealth. Most everyone is losing property value. Of the homes actually foreclosed, many are being repurchased at a bargain by long range investors. This is simply put, a redistribution of wealth.

Think of the economy as an EKG for one’s circulatory system. By 1999, Bill Clinton and the Democrats had the distribution of resources about as equitable as it has every been. Certainly money and opportunity did not get everywhere, but it was as good as it has ever been.

Resources is a good theme to talk about a host of issues. “Investing in resources, distributing resources, and preserving resources.” All of the aforementioned can refer to education and workforce development, Iraq War spending, the environment, and the economy.

Democrats must define "Pro Business"

ILLUSTRATED: An educated population is a pro-business environment. Some Republican voters can be convinced of that.

There is a split in the Republican ranks (many actually) that we can exploit. It is between those who primary are pro-business growth, and those who are motivated by a hatred of government.

For the last quarter century, the term “business friendly environment” has meant low taxes, and little legal and regulatory accountability. It is clear however, that the metropolitan areas the produce the most wealth are those with the most educated populations. All in spite of the negative side effect of usually having the highest taxes.

Democrats like Mark Warner have successfully made the case that education and infrastructure investments are part and parcel of economic development. There is a batch of Republicans (even if it amounts to 3% of the total electorate) that can be swayed that Democrats are the pro-business party. These Republicans can be pried away from anti-government zealots whose policies crimp the growth of the economy.