More Economic Wisdom

Yet another guru from the world of economics weighs in; former US Treasury Secretary and zealous neoliberal Robert Rubin. In today's Times he warns of the major threats to our economy ( AI, federal debt, Iran, tarrifs) and fails to mention the gravest one, climate change.Then goes on about "animal spirits" and free markets markets yada yada. Idiot society stuck in the loop. When asked by pollsters, "independents" think the Democratic Party is too far to the left. By which they mean trans people in bathrooms, etc. Cultural issues. Because the party could not possibly be considered on the left economically. Yet another economist in today's Times: We need "a government that actually works. One that continues to mint millionaires and billionaires but allows everyone else to prosper too." This one worked for the Biden administration so of course we would want to listen to her. She should teach at an Ivy league school. And does. She also makes the point that consumers feel unsecure and that they are shopping more than ever. Maybe that's a problem? She goes on to say: "Attacking the economic system that has produced so many successful entrepreneurs and wildly profitable businesses misses the point too. The more our economy grows, the more likely a Newer Deal is to succeed, because growth means tax revenue to fund these initiatives and jobs and innovations that improve Americans’ lives.' Taylor Rogers, a White House spokeswoman, said the United Nations was “pushing the woke Green Energy Scam, pressuring countries across the world to jeopardize their economic and national security in order to meet arbitrary climate goals.” She is talking about the threat to growth. And then there is another "doomloop" :France is not the only country facing a debt trap. As borrowing grows in many wealthy nations, populist political parties are surging. Experts warn the mix could combust into an economic crisis. Governments face a “doom loop,” in which market turmoil and political tumult feed off each other." The real ruler is the bond market. And yet they still mouth the empty slogans about "democracy" and "liberty for all".

Economic Wisdom

And the Nobel prize (and 1.2 million dollars) goes to economists who showed " the importance of how real-world behavior impacts policy and why it must be taken into account alongside broad economic variables like inflation and production. A critical aspect of their models rests on the idea that households and businesses make decisions based on what they believe will happen in the future. So when governments and policymakers communicate their economic plans, they can influence people’s expectations. That in itself can help steer the economy." Brilliant indeed! It's all about what we believe. For instance, we believe we can have infinite growth on a finite planet. We believe we can run off the cliff as long as we don't look down. We believe smart people will figure everything out, that new technology will solve everything. And yes, we can be influenced. By influencers. There is a reason they call economics "the dismal science". Do these people have to give the money back if the economy crashes? Will they just say oops? Not a word anywhere of criticism. This is capitalist realism at it's apex, market logic so dominant it becomes the ambient atmosphere. As riots break out in Albania and France and elsewhere we get this drivel from economists, "explaining behavior" in the Age of Anxiety. As for the riots in France, the peaceful demonstators are "stunned" that the black-clad anarchists destroyed property. Stunned, really? They hijack demonstrations/protests everytime, causing a violent reaction which favors the far Right. So why would the lifestyle "anarchists" still be described as "far left" in the press? I suspect they are split between morons and right-wing provacateurs. They are the politics of smash, which feels good for a moment. But they are not the Rupture they believe themselves to be. Don't be stunned.

"Billionaire Class"

Some dweeb in the NYTimes: “I would be nervous if we started using the focus on billionaires as a license to ignore the many other ways the tax code preferences the wealthy and high income over everyone else,” he said. “But I don’t think that’s really happening.” So he believes equity is a salient issue with "the masses"? I would argue they perversly enjoy their own humiliation and debasement. Enjoy as joisance. They are assurred that at least the Big Other cares enough about them to make them miserable. This is where we run into definitional issues around class. Left populists have focused their ire on billionaires, because sure, yeah, who needs a billion dollars? But what about the multi-millionaires? And yada yada on down the line. Everyone chants in unison: tax the rich, feed the poor, till there are no rich no more. Trouble is, there is no set definition of "rich". The old guard still talks about "the ruling class" but that's almost as fuzzy. Who rules what? The one thing we do know is if you want to build solidarity in the "ruling class/ rich" just try taking some of their wealth. Workers used to fight with "whatever means necessary", including guns and bombs, but those days are long gone. Now you just threaten to raise the interest rate on their Master Card and they roll over like puppies. RIP David Cobb. On the climate front: Elise Otten, a spokeswoman for Exxon. “We firmly believe climate change is a real and pressing issue, and that’s why we need sound policy at the federal level to reduce emissions and keep affordability top of mind.” We all know that affordability is drill baby drill so I can fill up my Humvee. When she says "at the federal level" she means not at the state level, where some accountability could actually take place. Because unlike Congress, state legisltures have not all been bought. Elise knows this but her job is to act AS IF she doesn't. Last bit of news of the day: Lula vs Bolsanaro? Really? Do we need any more proof that electoralism is all shit theatre? Oh, maybe I should vote for Putin, or Modi, or Trump. Or Netahyahu or whatever. I can't believe people still buy into this idiocy. Why not coyote vs roadrunner? Elmer Fudd vs Bugs Bunny?

Collective Action Problem

Isn't this problem of out of control AI rooted in the same capitalist contradiction as climate change? This dilemma of "alignment", trying to make sure the technology is in humanities best interest, is the same one we face with fossil energy. The Market, it shpould be obvious by now, is useless. And government is controlled by Capital. So a good liberal like Ezra Klein sees these labs competing with each other to achieve "recursive self-improvement", AI agents who take over their own training, and he calls for social "control". He asks why aren't their permits and regulations and governance working to serve the publics general interest? Well, why are we still burning fossil fuels: the collective action problem. With so much wealth and power at stake, no one actor is going to stop (building RSI, burning fossil fuel) unless everyone does. Kind of like a nuclear non-proliferation treaty. Give up your nukes and get crushed by the other nuclear powers (see Libya). Does Ezra Klein expect the United Nations to enforce a ban on AI development? He claims this development should face the same constraints as building a new high-rise in San Francisco. But this is apples and telephone poles: wholly separate categories. I would love it if these liberals would just admit market failure in both pollution and AI development and begin advocating for democratic planning. Tearing down these corporations and putting ownership of production in the hands of the people who make and consume. Then you would be able to exert genuine "control". You can't have it both ways. If you stick with Capital you face the growth imperative and therefore are doomed to competition and the collective action problem. The only way out is planning, not for profit, but for sufficiency. We all know perfectly well that infinite growth leads to doom but we act as if we don't know it. One day just leads to the next as we slowly crumble around the edges. Not unlike a melting glacier.