As we learned in the 2010 elections, the public holds Congress and the President responsible for the unemployment rate. PERIOD. They don't hold big business responsible; they don't hold small business responsible. They look at the unemployment number (and the direction) and pull the R-lever or the D-lever.
[BTW, I think it's much fairer to hold the government responsible for foreign policy & war/peace issues, IMO, because the Feds are pretty much responsible for that].
When Democrats are in charge of the economy, they tend to be relatively responsible. They try to make sure there is a level playing field for business --- by enforcing the laws (e.g. Anti-trust). They stimulate the economy when it is down; they take their foot off the pedal when the economy is strong....
But the Republicans profess to believe in the free market. The logical thing for them to do when the economy goes south is....nothing. Why should they do anything? The market has decided that all of the banks should fail and/or the automakers should fail, etc.
There is a big problem, though. Republicans know that they will be thrown out of office if the economy doesn't come back. So they have to do SOMETHING. But their principle says to do nothing. Tis a quandary...What to do, what to do?
How to stimulate the economy without APPEARING to do anything...Hmm...The answer? The kind of Klepto-Pseudo-Capitalism we've come to know ---
- Stop enforcing the law; make sure everyone knows there is no chance of any regulation..[except for poor people laws, of course!].
- Repeal whatever laws that might be enforced...
- Cut taxes for corporations and Fat-cats, ignoring the fact that it blows a gigantic hole in the deficit.
- Invent new rules of economic arithmetic that show that when you subtract one positive number (taxes) from another positive number (expenses) --- the result is actually larger than either!
- AVOID BUSINESS COMPETITION AT ANY COST! When businesses have to compete, profits go down. Republicans don't believe in Capitalism. They believe in "Profitism", and "Profitism" demands that there only be one competitor in each area. Thus, Lockheed Martin was born! Price-fixing is always the answer.
- Pick business winners and losers -- EXACTLY THE OPPOSITE OF MARKET CAPITALISM! Winners are selected on the basis of political contributions. Did I have to explain that part? Lenin is smiling somewhere...
- Oh, if possible, try to get a knucklehead as chairman of the Federal Reserve, preferably one that is so worried about excess surpluses that he rubber-stamps your tax cuts.
Now, this plan doesn't work very well, because the economy tends to grow poorly. This is because the top 10% doing well leaves...90% doing not-so-well. Even Republicans can't change that arithmetic.
But most of the 90% DO have jobs, so the unemployment rate isn't terrible. If it is terrible, increase Defense spending. If that's not enough, start a bogus war. That gets the 'surplus population' off the unemployment line...
We've already discussed the most important Republican belief:
Axiom: Cutting taxes leads to greater revenue for the government, no matter the state of the economy or the size of the tax cut. Thus, lowering tax rates to zero brings in infinite revenue, and solves the deficit problem once and for all.
But there is a second belief that is almost as important:
Axiom: Defense spending is NOT spending, does not add one nickel to the deficit, and does NOT increase the size of government!
This should be self-evident to the most casual observer, thus needs no explanation. [Of course, it is inexplicable nonsense -- but you have to think like a Republican]. Remember this - EVERYTHING is axiomatic to a Republican; this saves a lot of time trying to show them the evidence that their policies suck!
With these techniques, it means Republicans (at least) have a chance to be re-elected. But most of the jobs are the equivalent of plantation jobs, picking cotton for the master. This isn't good -- because some of these people are permitted to vote! Note: this isn't the way President Jefferson Davis (or Strom Thurmond) would have done things, but that's another diary....
What to do? Convince the "cotton-pickers" of 1 of 2 things:
A) You actually have it really good; WE ARE THE RICHEST NATION ON EARTH, and since you are a citizen, you must ACTUALLY be rich. You just don't realize it.
B) You don't have it good; but the only reason you don't have it good is because of [fill in favorite whipping boy ethnic group de jour]. And if you elect Democrats, said group will take your jobs and rape your women. And don't forget about that War on Christmas!!!!!
Ah-ha! The ace-in-the-hole, if all else fails: Christianity!
Christianity seems to play ball nicely with Republicans, doesn't it? If your Pastor/Reverend/Priest tells you to obey authority (especially him), and to accept your lot in life, what's a poor Republican to do? The authoritarian mindset makes Republicans & Christians soul brothers anyway, but when you throw in this 'contentment' stuff, and a nice dollop of intolerance, it is a marriage made in Heaven. Heaven, eh? I think Heaven was invented to make poor Republicans okay with their crappy end of life's bargain, don't you?
The result of all this is a mess, needless to say. There is a reason Serfdom is no longer an accepted economic system -- it doesn't work. We knew this in about 1700.
But remember: Republicans have no choice -- they will be thrown out of office if they don't get the unemployment rate down. And since they have NO IDEA how to create jobs (they don't believe in technology or science or anything else that might ACTUALLY create jobs) and they can't have the government do anything, they are in an impossible box.
In writing this diary I came to a relatively serious realization that explains a lot: There is no political mechanism available to Republicans to slow the economy when it is going strong! Because that would involve government intervention into the economy.
Axiom: Raising taxes IS intervention in the economy, but lowering them is NOT.
As a result, Republicans let the economy overheat, and it explodes - destroying the little bit of wealth created. In 1929 it happened. In 2008 it happened. The only mechanism left to stop them was the Federal Reserve --- and it failed both times.
Pity the Republican --- in order to uphold their free market principles, they have to destroy our economy! And they've done so twice in the last 80 years.
And they will again if given the chance. Because, while Democrats can adapt to changing conditions, Republicans operate from first principles (ask in-Justice Scalia). When those first principles are dead wrong, Republicans twist themselves into moral pretzels --- but they never, ever change. You might say it's axiomatic. But I live in hope. Help me answer the poll. I really want them to change.