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Today's Stories January 22, 2008 Paul Craig Roberts Farewell to Old Economic Nostrums January 21, 2008 Kevin Alexander Gray Playing the Race Card Linn Washington, Jr. Deferring Dreams, Delusions of Democracy Pam Martens How Wall Street Blew Itself Up David Macaray Labor's Grim Dilemma: Do We Need a Labor Party? Uri Avnery Look Who's Talking Omar Barghouti Europe's Collusion in Israel's Slow Genocide Joe DeRaymond Protest and Trial in D.C. B.R. Gowani Why Islam Should Tolerate Images Shepherd Bliss The False U.S. Economy Jean-Guy Allard Philip Agee Versus the CIA Dan Bacher Leaping Steelhead! Website of the Day Destroyed By a Rising Flood January 19 / 20, 2008 Alexander Cockburn The Campaign in Black and White Saul Landau Good Time Charlie's War China Hand Endgame for Pakistan? Conn Hallinan Desert Mirage: What Was the Bombing of Syria Really About? Ron Jacobs No Retreat Dave Lindorff A Tax Rebate Won't Fix This Mess Andy Worthington Canada's Humiliating Double Standard on Torture Paul Armentano What's the Going Price for a Joint? More Than You Might Think Seth Sandronsky High Crimes and Economics Michael Donnelly Dodging Ecocide Patrick Irelan The Ordeal of Dr. Safdar Sarki Martha Rosenberg The Drug Industry Takes Another Hit Sherwood Ross Making the World Safe for Despots: Bush's Global Arms Trade David Michael Green So You Want to be My President, Eh? James Rothenberg Unimpeachable: Under House Protection Daniel Gross Starbucks Shortchanges Dr. King Peter N. Carroll In Memory of Milton Wolff Susie Day Croakin' on Hudson Paul Krassner Woody Allen Meets Tongue Fu Poets' Basement Wolff, Buknatski and Orloski Website of the Day Rocky Mountain Blues   January 18, 2008 Allan Nairn Killing Civilians, Carefully Ralph Nader When the Big Boys Get in Trouble, Who Pays the Ultimate Bill? Joanne Mariner Terrorism and Preventative Detention Alan Farago The Stimulus and the Meltdown P. Sainath Pity the Brahmins R.F. Blader Beyond Steinem's Feminism Andy Worthington A Letter from Guantánamo John Jonik Private Insurance is Bad for Your Health Brian McKenna Where Even Sharing is Prohibited: Notes from Inside a Michigan Women's Prison Daoud Kuttab This Time Next Year? Website of the Day Those South Carolina Voting Machines   January 17, 2008 Paul Craig Roberts Leader and Vassal Christopher Brauchli The FBI's Bills Come Due Robert Fantina Leadership, Bush and the New York Times Patrick Irelan Eternal War Paul A. Moore When the Rich Pay No Taxes Stephen Lendman Institutionalized Spying on Americans Beena Sarwar Bhutto and the "State Within a State" Walter Brasch Buzzwords in the Echo Chamber: Change and the Establishment Brenda Norrell Bush Legacy in Texas Sours Adam Federman End of the Left? Website of the Day Democrats for Romney   January 16, 2008 Jeffrey St. Clair Return of the Native Franklin Lamb The Bombing at Qarantina Julian Sanchez David Weigel Who Wrote Ron Paul's Newsletters? Sharon Smith Ron Paul and the Left: a Slippery Slope? Allan Nairn Economic Indicator: No Free Lunch, No Free Market Ayesha Ijaz Khan How the American Media Enables Bush's Iran Fixation Andy Worthington A Strategic Call to Close Guantánamo Richard Behan Nancy Pelosi, You Must Impeach! Website of the Day Obama the New JFK? He's Not That Bad!       January 15, 2008 Andrea Peacock Breach of Trust in America's Most Toxic Town: How the EPA is Rubbing Poison Into Libby's Wounds Wajahat Ali An Interview with Seymour Hersh on Iraq, Bush Foreign Policy and the Prospects of War with Iran Joe Bageant Getting Out the Bling Vote Ralph Nader The Candidate Taboos John Ross Zero Hour: NAFTA and Mexico's Agrarian Apocalypse Elaine Cassel Jose Padilla vs. John Yoo: Can a National Disgrace be Rectified? Peter Morici The Fed Needs More Than a New Communications Strategy Beena Sarwar Pakistan's Dirty Tricks Brigade Robert Weissman Big Business is Even More Unpopular Than You Thought Binoy Kampmark Going Tata in India Dave Zirin Dennis Brutus Smacks Down the Hall of Fame Website of the Day David Lynch on the iPhone   January 14, 2008 Ishmael Reed Ma and Pa Clinton Flog Uppity Black Man Roger Morris Burials in the Sind Uri Avnery The Hands of Esau Mike Whitney Bush's Voodoo Stimulus Package Allan Nairn General Suharto of Indonesia: One Small Man Leaves a Million Corpses William Blum Oh, By the Way, the Iraqis Don't Really Want Us Alan Farago A Subprime Wake Up Call David Macaray Are Labor Unions Ready for Prime Time? Eva Liddell Getting Drunk with Obama Zoe Blunt Road Kill: New Highway Blocked by Protesting Raccoons Website of the Day Doug and Andrea Peacock on Grizzlies   January 12 / 13, 2008 Andrew Cockburn How the New England Journal of Medicine Undercounted Iraqi Civilian Deaths Saul Landau 60 Years of Empire Corey D. B. Walker Barack Obama and the Crisis of the White Intellectual Col. Dan Smith Bush, Iran and the Magician of the Tarot Eric Toussaint The US Subprime Crisis Goes Global Ron Jacobs Television, Murder and Vietnam Fred Gardner The People vs. Christopher James Chakos Stan Cox Don't Take That Pill! Jacob G. Hornberger The Warfare State Ramzy Baroud The Good, the Bad and the Ugly Joseph Grosso The Anglosphere: a Special Relationship of Elites David Díaz-Arias Imagining An/Other Latin American Left Stacey Warde Before We Move On ... Dan Bacher Pumped to Extinction: the Decline of the Delta Smelt Michael Dickinson Georgie in Jesusland Website of Weekend CounterPunchers Protest Outside NYT Offices   January 11, 2008 Dave Lindorff Did Hillary Really Win New Hampshire? More Questions About Diebold Voting Machines Paul Craig Roberts No Escape from War and Unemployment Andy Worthington Six Years of Guantánamo Kenneth Couesbouc Banking on Thin Ice Jeff Ballinger Inside the Vienna Consensus Christopher Brauchli Lethal Injection, the Supremes and China Manuel Garcia, Jr. Paying No Attention to the Presidential Campaigns Andrew Silverstein Bush's Weepy Visit to Jerasulem Marwan Bishara Bush in the Middle East Robert Weissman The First Amendment Gone Wild Patrick Irelan Damn the Small Boats! Website of the Day Hillary and the Superdelegates: Or Why She Wins Even When She Loses     January 10, 2008 Alexander Cockburn Now Nader Claims He Didn't Endorse Edwards Bob Wing Marqueece Harris-Dawson Race Within the Race: Obama, the NH Vote and the Specter of Tom Bradley Michael Donnelly White Women Gone Wild? David Macaray Three Big Reasons for the Decline of Labor Unions China Hand Bush's Delusional Policy Pushes Pakistan to Brink of Catastrophe Ayesha Ijaz Khan Saudi Arabia and Pakistan: Brotherly, Friendly Countries? Rannie Amiri Obama, Man of Kansas or Kenya? Website of the Day Iranian Video of the Hormuz Incident   January 9, 2008 Cockburn / St. Clair The Empire Strikes Back Dave Lindorff The Bad News from New Hampshire: Death By Triangulation John Chuckman Pardon My Laughter: Watching the US Primaries from Canada James Bovard Stomping Freedom: Inside the Martial Law Act of 2006 Alan Farago As Florida Sinks: the View from the Titanic Russell Mokhiber Why Picket the New York Times in DC on Friday? William S. Lind Kicking the Can Down the Road in Iraq Peter Morici Beyond the Sophistry: Why the Trade Deficit Matters Josh Reubner Sudan vs. Israel: Double Standard on Divestment Mike Roselle The Pursuit of Happiness Website of the Day Bottles of Tears on the Wall: Steve Perry on NH   January 8, 2008 Paul Craig Roberts No Jobs for the New Economy (or the Old) Russell Mokhiber The Black Hillary: Obama is Just Another Political Sedative Robert Fantina The Gulf of Tonkin and the Strait of Hormuz Dave Zirin Butts on Parade Shamako Nobel I Am an Emcee: the Politics of Hip Hop John Ross Zapatista Women Encounter Themselves Brenda Norrell Apaches Defend Homeland from Homeland Security Laura Carlsen Why Bolivia Matters Patrick Irelan Remember the Maine! Evelyn J. Pringle The Holes in Bush's FDA Jonathan M. Feldman After Iowa and New Hampshire: a Strategy for Rebuilding the Peace Movement Michael Dickinson Playing Soldier Website of the Day Sean Hannity on the Run!   January 7, 2008 Chris Floyd There Will Be Blood: But No Justice for Iraq Atrocities John Blair Remove That Man! Creeping Fascism in Indiana Uri Avnery The Case of the White Bird Andy Worthington Who Are the Gitmo Saudis? Binoy Kampmark Needling the Convict: Lethal Injection and the Supreme Court David Macaray Women on Strike Ralph Nader Obamarama: the Politics of the Smooth Mood Michael Donnelly It's the War Vote(s), Stupid! Ron Jacobs Ron Paul's Run: Is Being Against the War Enough? Gideon Levy The Hostile President Dave Lindorff A Real 9/11 Cover-Up? Sibel Edmonds, Turkey and the Bomb Website of the Day Plagues and Pleasures on the Salton Sea   January 5 / 6, 2008 Douglas Valentine Good Guys in Black Hoods Kevin Young The US Occupation and Popular Opinion in Iraq Richard Rhames Saddam Who? Saul Landau Bush Snatches Defeat from Victory Marc Lynch Why Bush's Iran Strategy is Failing Robert Fantina Iowa, Democrats and the Iraq War Donna Volatile Antiwar Soldier: an Interview with Jonathan Hutto, Sr. Jelle Bruinsma Norman Finkelstein in The Netherlands Bob Sutcliffe Remembering Andrew Glyn, Rebel Economist Harvey Wasserman Anti-Nuclear Renaissance Missy Beattie Why Obama Can't Save Us David Swanson Remembering the Separation of Powers Jacob Hornberger The Importance of the Padilla Case Shepherd Bliss Survival Tools from Kokopelli Farms Ron Jacobs Bleeding Kansas Poets' Basement Patti Smith, B.R. Gowani and Peter Buknatski Website of the Weekend Jimmy Dean Sausage Call Complaint   January 4, 2008 Cockburn / St. Clair A Good Night in Iowa Jonathan Cook War Crimes Airbrushed from History Paul Craig Roberts Thinking for Yourself is Now a Crime Stan Goff Ron Paul's Monkeywrench Dave Lindorff Clinton's Iowa Flop Exposes DLC Myths as Frauds Niranjan Ramakrishnan To Pindi Station Allan Nairn U.S. Elections Over Before They Began Joshua Frank The Failures of Sectarianism Peter Morici Economy on the Skids Mary McInnis Iowa Cocky-Us: How to be a Caucus Tease Website of the Day The Return of Obama Girl   January 3, 2008 Fatima Bhutto Farewell to Wadi Bua Pam Martens The Free Market Myth Dissolves into Chaos Joanne Mariner The Presidential Candidates and Torture Zoltan Grossman Remember the '80s: Social Movements Between Woodstock and the Web David Domke The Echoing Press and Huckabee Norman Solomon Edwards Reconsidered Nikolas Kozloff Return of the Faux Liberal Jacob G. Hornberger The Padilla Case and the Future of Habeas Corpus Martha Rosenberg Quit Picking on Huckabee's Son, Michael Vick Russell Means This Property is Condemned: a Notice to Those Occupying Lakotah Lands Website of the Day WolfQuest   January 2, 2008 Jeff Taylor The Left and Ron Paul M. Shahid Alam The Life and Death of Benazir Bhutto: a Pakistani Tragedy Gary Leupp Madness Compounding Madness: Calls for Intervention in Pakistan Paul Craig Roberts Criminals with Badges Heather Gray Georgia's Racist Death Penalty Fred Gardner and Shobhit Arora Dr. Strangelove's Nemesis David Macaray Labor Unions and Taft-Hartley Benjamin Dangl Fear and Loathing in Bolivia     January 1, 2008 Iain A. Boal City of Disappearances B. R. Gowani Benazir's Death in Crisistan Shahid Mahmood Bhutto and the Press Linn Washington, Jr. Old Injustices Endure: From Crack Sentences to Racial Profiling Harvey Wasserman Taking Leonard Peltier to Iowa: the Moral Low Point of the Clinton Era John Ross 2008, Already a Year to Forget Website of the Day The Thrill is Gone: BB and Gladys   December 31, 2007 Alexander Cockburn Goodbye 2007 and Good Riddance! Tariq Ali Pakistan, the Aftermath Liaquat Ali Khan The Perfidy of Pakistan's Rulers Wajahat Ali After Bhutto, a Nuclear Pakistan? Robert Fisk Who Killed Bhutto? Ajai Sahni Myths and Realities About Benazir Bhutto and Pakistan's Dark Future Marwan Bishara You Say Talk, I Say Attack: The Middle East and the US Presidential Election Campaigns Uri Avnery The Beilin Syndrome Mark T. Harris Does This Happen in Canada? Brenda Norrell Resistance and Censorship Website of the Day A People United Will Never Be Defeated   December 29 / 30, 2007 Alexander Cockburn Options in America: Kill Yourself or Have a Baby Tariq Ali Indignation and Fear Stalk Pakistan Fawzia Afzal-Khan My Encounter with Benazir Bhutto Gary Leupp The U.S. and Pakistan After 9/11: Blowback from an Unholy Alliance China Hand Pakistan Stares Into the Abyss Jacob Hornberger Stop Medddling in Pakistan John Chuckman Pakistan and the Failure of Quick-Fix Politics Missy Beattie Evaluating Bush with the Bhutto Corruption Standard Ralph Nader Who Will Take the Next Step? Fidel Castro There Hasn't Been a Day in My Life When I Haven't Learned Something Robert Fantina The Sham of Homeland Security Greg Moses Beauty from the Heart of Texas Catherine Lutz What We Can Not See: Art and Bombing Kristin Van Tassel Seeing in the Dark Kim Nicolini Redacted: Brian DePalma's Scream of Outrage Phyllis Pollack Keith Richards Runs With Rudolph Once More Poets' Basement Landau, Gibbons and Davies Website of the Weekend Driving Karachi in Search of the Perfect Naan   December 28, 2007 Farzana Versey The Complex Electra Wajahat Ali A Pakistani Requiem Binoy Kampmark Death in Rawalpindi: Bhutto and Her Legacy Ayesha Ijaz Khan Not Dead Yet: The Pakistan People's Party Still Survives Anthony DiMaggio Turkey's Bombing of Iraq Ray McGovern Creeping Fascism Jim Goodman Biofuels, the Biggest Scam Going Ron Jacobs Transcending the Colonizer's History: Iran, a People Interrupted Russell Hoffman Mini-Nukes by Toshiba John Murphy Greens Gone Wild Website of the Day Guiliani Campaign Official: "Only Rudy Can Defeat the Muslims"   December 27, 2007 Dilip Hiro A Tragedy Foretold: Will Bhutto's Death be a Boost for Her Party? Murtaza Shibli Who Killed Bhutto? Stephen Soldz Fallujah, the Information War and U.S. Propaganda Bill Quigley Locked Outside the Gates Paul Craig Roberts The Great American Lock-Up Omer Subhani Killing Bhutto: What Happens Next in Pakistan? Marjorie Cohn The Torture Tape Cover-Up: How High Does It Go? Allan Nairn Cataclysm By Money Whim Jacob G. Hornberger Smearing Ron Paul: Shame on the NYT Norman Solomon Channeling Suze Orman Patrick Irelan Rumsfeld Spills the Ink Ben Tripp Pass the Razor Blades Website of the Day Quagmire, For What It's Worth   December 26, 2007 Charles Tripp From One Saddam to Fifty Paul Armentano No-Knock, You're Dead Rannie Amiri Lebanon in Search of a Government Stanley Heller Brzezinski and Charlie Wilson's War John Walsh Two Unreasonable Men Martha Rosenberg The Strange Career of Scott Gottlieb Norman Madarasz Bolivia Amends New Constitution and Faces Mutiny from Within Website of the Day Cockburn at the Battle of Ideas   December 25, 2007 Patrick Cockburn Conscience and Empire December 24, 2007 Andrea Peacock A Dark Ride on the Border Tariq Ali Thinking of Edward Said Uri Avnery Help! A Ceasefire! Jill Jameson Burma is Not Back to Normal: A Trip from Rangoon to Mae Sot Steve Melendez Russell Means Goes to Washington Mike Whitney The Big Fix Chuck Munson Not Getting It About New Orleans John Walsh Clueless Crusaders Farzana Versey Tony Blair and the Hawking of Religion Richard Neville Dreaming of a White House Christmas Website of the Day Back in the USSR December 22 / 23, 2007 Alexander Cockburn Mike Huckabee's Ascending Chariot Ralph Nader Politics and Profits: How the Oil Cartel Gets Its Way Andy Worthington Intelligence Failures, Battlefield Myths and Unaccountable Prisons in Afghanistan Ahmad Faruqui The Comedian of Pakistan Bill Moyers Society on Steroids Rev. William E. Alberts Blessed are the Peacemakers Timothy J. Freeman From Kant to Lennon: Can War Really be Over? Anthony DiMaggio Democrats Continue to Capitulate on Iraq Fred Gardner Molecule of the Year, Cannabiodiol Paul Krassner Enhanced Hazing Techniques Seth Sandronsky 17 Years of Meanness: Repealing California's Three Strikes Law William Loren Katz Christmas Eve Freedom Fighters: Recalling the Battle of Lake Okeechobee Michael Dickinson In the Dungeon of the Zabita Ron Jacobs Why Leon Russell Still Matters David Vest Doyle Bramhall's "Is It News?" Poets' Basement Orloski, Davies and Ford Website of the Weekend George W. Hates Santa   December 21, 2007 John Ross New Massacres Loom in Mexico Jacob Hornberger Nothing Can Morally Justify the Invasion of Iraq Dick J. Reavis A Way Out of the Newspaper Abyss Jeff Cohen and Norman Solomon The 2007 P.U.-litzer Prizes Peter Morici Business as Usual as Recession Looms Jack McCarthy Let Us Now Praise Judith Regan (Even If She Did Sleep with Bernie Kerik) Raúl Zibechi Sex and Revolution Steve Early How the Presidential Candidates Made Me an Atheist David Macaray Union Aftermath Patrick Bond Zuma, the Center-Left and the Left-Left in S. Africa Lakota Freedom Delegation A Declaration of Independence from the USA Website of the Day Solomon v. Beck: Tale of the Tape   December 20, 2007 David Rosen Mitt Romney's Secret Life as a Pornographer Alan Farago The Huckster and the Wreckage: Jeb Bush and the Subprime Mortgage Crisis Laura Carlsen Standing Up to NAFTA Ashley Dawson The Return of the Bread Riot Wayne Smith and Jennifer Schuett Cuba Changes, US Policy Stagnates Website of the Day How to Talk to a FoxNews Reporter   December 19, 2007 Saul Landau Is the NIE Bush's Watergate? Paul W. Lovinger Hillary the Hawk Norman Solomon The Mad Corporate World of Glenn Beck Dave Zirin George Mitchell's Drugs of Choice Marjorie Cohn Bush Still Spinning Iranian Nukes Sen. Russell Feingold The Iraq War is Exhausting Our Nation Sonja Karkar A Christmas Reflection on Palestine Anthony Papa Open the Drug Gulags Christopher Ketcham Pave the Holy Lands with Good Intentions Davey D Britney's Little Sister is Pregnant: Should We Blame Hip Hop? Website of the Day When Republicans Use the F-Word on TV   December 18, 2007 R. F. Blader The Politics of Teen Pregnancy George Wuerthner Gunning for Wolves in Idaho Steven Higgs Can the NAFTA Superhighway be Stopped? Vijay Prashad Encounters with Ghadar David Macaray The Free Rider Problem Ralph Nader Nine Books That Make a Difference: a Reading List for the Holidays Eva Liddell Privatizing War Abroad, Invading Privacy at Home Martha Rosenberg While the Bodies are Still Warm: Drugs, Shrinks and Shooters Dave Lindorff When Impeachment is Out of Print Peter Morici The Consequences the Trade Deficit Website of the Day Ron Paul: How Fascism Will Come to America   December 17, 2007 Mike Whitney Staring Into the Abyss Tom Barry Planning the War on Immigrants Uri Avnery A Gaza Masada? Greg Moses Crossing the Line in Texas Allan Nairn Terrorism; Counter- Terrorism: Excuses for Murder Patrick Bond South Africa's Fight Between Hostile Brothers Stephen Lendman Police State America Charles Jonkel Grizzly Right of Way Laray Polk An Inside-Out Crisis in Gaza Stephen Fleischman Pawns in Their Game December 15 / 16, 2007 Peter Linebaugh A People's Penny for the Magna Carta Howard Zinn Bomb After Bomb Standard Schaefer The Greening of Big Tobacco Raymond J. Lawrence Let's Take Christ Out of Christmas Alan Farago Down on Desolation Row: the Vultures and the Growth Machine Saul Landau Lord Byron and the Bad Tourists Jenna Orkin Lying to "Reassure" the Public: Bush's EPA and the Post-9/11 Toxic Air Cover-Up Ahmad Samih Khalidi Why a Palestinian "State" is a Punitive Construct Robert Fantina Politics By Photo-Op Missy Comley Beattie Resistance Amid the Ruins Ramzy Baroud Of Mormons and Muslims James L. Secor A Vision for China's Future Elijah Wald Ike Turner's Music Won't be Forgotten Website of the Weekend The Alliance for the Wild Rockies Needs (and Deserves) Your Support   December 14, 2007 JoAnn Wypijewski The Dirty Cad: What Giuliani's Sex Life Tells Us About Him John Ross Iraqi Refugees Return: One Cruel Hoax Jacob Hornberger Terror Suspects Belong in Federal Court Andy Worthington Guantánamo and the Supreme Court: What Happened? Allan Nairn "Shoot Them on the Spot": Rewarding War Crimes Dave Zirin The Mitchell Report: Absolving the Owners Dave Lindorff The First Cut is the Deepest Misty MacDuffee Toxic Grizzlies Ben Terrall What Happened to Lovinsky Pierre-Antoine? Dr. Mustafa Barghouthi Prerequisites for Peace Website of the Day Sen. Kit Bond: "Waterboarding is Like Swimming"   December 13, 2007 Paul Craig Roberts Shrinking the Dollar from the Inside-Out Mike Whitney Dershowitz for the Defense--of Waterboarding Ron Jacobs Blank Check DemocratsL the Great War Funding Conspiracy Norman Solomon The USA's Human Rights Daze Peter Morici The Dragon and the Toothless Dog: China Doesn't Flinch Sandy Mayes Blocking the Strykers: 13 Days of War Resistance at Port Olympia Franklin Lamb The UN in Lebanon: Whose Mission Is It Fulfilling? Jacob Hornberger Don't Reform the CIA, Abolish It Nadim Rouhana An Interloper in My Own Land Dave Zirin On Pigskin and Petrol Website of the Day Rachel's Needs (and Deserves) Your Support! December 12, 2007 Allan Nairn US Intelligence is Tapping Indonesian Phones Alan Farago How Sprawl Eats Its Young Ray McGovern Torture, Lies and Videotape Winslow T. Wheeler The Phony Pentagon Budget Cuts Evan Jones The Raid on Great Western: Why an Australian Bank Might Spell Doom for the US Farm Belt James Petras An Open Letter to Sarkozy on the Exchange of Political Prisonsers Joel Hirschorn The Horserace Fiction: Clinton, Obama and the Democratic Machine Joshua Frank Why Ron Paul Deserves Our Attention Sherry Wolf Why the Left Should Reject Ron Paul Dan Bacher Survey of a Fish Graveyard Website of the Day Men Eating Bugs                 Subscribe Online

January 22, 2008 Neither Supply-Side Theory Nor Keynesian Remedies Can Save Us Now Farewell to Old Economic Nostrums By PAUL CRAIG ROBERTS With his tax rebate policy, President Bush has put economic policy back on a Keynesian basis. Will it work? During the two decades it was in effect, supply-side economics had restorative effects on the American economy. Its predecessor, Keynesian demand management, stimulated demand more than supply. Consequently, over time the trade-offs between employment and inflation worsened, and for a while it appeared that inflation and unemployment would rise together. The breakdown of the Keynesian policy opened the door for the Reagan administration's supply-side approach. By following Nobel economist Robert Mundell's advice to "reverse the policy mix," the supply-side policy allowed the US economy to grow without paying for the growth with rising rates of inflation. However, the new macroeconomic policy was not a cure-all, and its success in banishing worsening "Philips curve" trade-offs between inflation and employment masked the appearance of new problems, such as the loss of jobs and GDP growth to offshoring, problems from deregulation, and the growing concentration of income in fewer hands. The Bush administration is turning to tax rebates, because problems in the financial system and the amount of consumer debt hinder the Federal Reserve's ability to pump money to consumers through the banking system. Like an easy credit, low interest rate policy, the purpose of a tax rebate is to put money in consumers' hands in order to boost consumer demand. Will consumers spend the rebate, or will they use it to pay down their debts? If they spend the rebate on consumer goods, will it provide much boost to the economy? Many Americans are overloaded with debt and will have to use the rebate to pay down credit card debt. The gift of $800 per means-tested taxpayer is really just a partial bailout of heavily indebted consumers and credit card companies. The percentage of the rebate that survives debt reduction will be further drained of effect by Americans' dependency on imports. According to reports, 70% of the goods on Wal-Mart shelves are made in China. During 2006, Americans spent $1,861,380,000,000 on imported goods, that is, 23% of total personal consumption expenditures were spent on imports (including offshored goods). This means that between one-fifth and one-fourth of new consumption expenditures will stimulate foreign economies. Americans worry about their dependency on imported energy, but the $145,368,000,000 paid to OPEC in 2006 is a small part of the total import bill. Americans imported $602,539,000,000 in industrial supplies and materials; $418,271,000,000 in capital goods; $256,660,000,000 in automotive vehicles, parts and engines; $423,973,000,000 in manufactured consumer goods; and $74,937,000,000 in foods, feeds and beverages. The Keynesian policy of driving the economy through consumer demand was applied to a different economy than the one we have today. In those days the goods Americans purchased, such as cars and appliances, were mainly made in America. Construction workers were not illegals sending their wages back to Mexico. The US had a robust manufacturing workforce. When consumer demand weakened, companies would reduce their output and lay off workers. Government policymakers would respond to the decline in employment and output with monetary and fiscal policies that boosted consumer demand. As consumer spending picked up, companies would call back the laid off workers in order to increase output to meet the rising demand. Today Americans are losing jobs for reasons that have nothing to do with recession. They are losing their jobs to offshoring and to foreigners brought in on work visas. Today many American brands are produced offshore in whole or part with foreign labor and imported to the US for sale in the American market. In 2007, prior to the onset of the 2008 recession, 217,000 manufacturing jobs were lost. The US now has fewer manufacturing jobs than it had in 1950 when the population was half the current size. US job growth in the 21st century has been confined to low-pay domestic services. During 2007, waitresses and bartenders, health care and social assistance, and wholesale and retail trade, transportation and utilities accounted for 91% of new private sector jobs. When a population drowning in debt is hit with unemployment from recession on top of unemployment from offshoring, will the people spend their rebates in eating places and bars, thus boosting employment among waitresses and bartenders? Will they spend their rebates in shopping malls, thus boosting employment for retail clerks? If they become ill, the lack of medical insurance will direct their rebates to doctors' bills. Economists and other shills for globalism told Americans not to worry about the loss of manufacturing jobs. Good riddance, they said, to these "old economy" jobs. The "new economy" would bring better and higher paying jobs in technical and professional services that would free Americans from the drudgery of factory work. So far, these jobs haven't shown up, and if they do, most will be susceptible to offshoring, just like the manufacturing jobs. The Bush administration has in mind a total rebate of $150,000,000,000. As the government's budget is already in deficit, the money will have to be borrowed. As the US saving rate is about zero, the money will have to be borrowed abroad. Foreigners are already concerned about the US government's indebtedness, and foreigners are bailing out some of our most important banks and Wall Street firms that foolishly invested in subprime derivatives. Under pressure from budget and trade deficits, the US dollar has been losing value against other traded currencies. Having to borrow another $150 billion abroad will further erode the dollar's value. Meanwhile, Congress passed a $700 billion "defense" bill so that the Bush administration can continue its wars in the Middle East. Our leaders in Washington are out to lunch. They have no idea of the real challenges our country faces and America's dependence on foreign creditors. The rebate will help Americans reduce their credit card debt. However, adding $150 billion to an existing federal budget deficit that will be worsened by recession could further alarm America's foreign creditors, traders in currency markets, and OPEC oil producers. If the rebate loses its punch to consumer debt reduction, imports, and pressure on the dollar, what will the government do next? As long as offshoring continues, the US cannot close its trade deficit. Offshoring increases imports and reduces the supply of potential exports. With Washington's Middle East wars, with private companies ceasing to provide health coverage and pensions, with political spending promises in an election year, and with recession, the outlook for the federal budget deficit is dismal as well. The US is moving into a situation in which the government could find it impossible to close the twin deficits without massive tariffs to curtail imports and offshoring and without pursuing peace instead of war. The outlook for the United States will continue to worsen as long as hegemonic superpower and free trade delusions prevail in Washington. Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.com   Your Ad Here

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