Monday, May 12, 2008

And Then There's Global Climate Change

Earthside Comments: Directly related to the previous post are the environmental consequences of human overpopulation and human over consumption of natural resources. Too many people using too much stuff is leaving the Earth's ecosystem stressed and strained.

As we all learned in fifth grade science, for every action there is a reaction. We have burned up over half of the sunlight stored as carbon in oil, coal and gas over millions and millions of years. We've used all that energy in just about 150 years -- of course, there are going to be consequences -- it is just common sense.

Now, as the items below relate, we are in a real bind, our time is running out to do anything that will have substantive mitigating impacts.

What dramatic actions by world governments are you witnessing to save us from our own behavior?

Well?

Link: World CO2 Levels at Record High, Scientists Warn | The Guardian

Mauna_loa_carbon_dioxide

The concentration of carbon dioxide in the atmosphere has reached a record high, according to new figures that renew fears that climate change could begin to slide out of control.

Scientists at the Mauna Loa observatory in Hawaii say that CO2 levels in the atmosphere now stand at 387 parts per million (ppm), up almost 40% since the industrial revolution and the highest for at least the last 650,000 years.

The figures, published by the US National Oceanic and Atmospheric Administration (NOAA) on its website, also confirm that carbon dioxide, the chief greenhouse gas, is accumulating in the atmosphere faster than expected. The annual mean growth rate for 2007 was 2.14ppm – the fourth year in the past six to see an annual rise greater than 2ppm. From 1970 to 2000, the concentration rose by about 1.5ppm each year, but since 2000 the annual rise has leapt to an average 2.1ppm.

Scientists say the shift could indicate that the Earth is losing its natural ability to soak up billions of tons of carbon each year. Climate models assume that about half our future emissions will be re-absorbed by forests and oceans, but the new figures confirm this may be too optimistic. If more of our carbon pollution stays in the atmosphere, it means emissions will have to be cut by more than currently projected to prevent dangerous levels of global warming.

Martin Parry, co-chair of the Intergovernmental Panel on Climate Change's working group on impacts, said: "Despite all the talk, the situation is getting worse. Levels of greenhouse gases continue to rise in the atmosphere and the rate of that rise is accelerating. We are already seeing the impacts of climate change and the scale of those impacts will also accelerate, until we decide to do something about it."

Link: It Isn't Morning in America Anymore -- It's Dusk on Planet Earth | Environment | Bill McKibben/Tomdispatch.com/AlterNet.org

Even for Americans, constitutionally convinced that there will always be a second act, and a third, and a do-over after that, and, if necessary, a little public repentance and forgiveness and a Brand New Start -- even for us, the world looks a little Terminal right now.

It's not just the economy. We've gone through swoons before. It's that gas at $4 a gallon means we're running out, at least of the cheap stuff that built our sprawling society. It's that when we try to turn corn into gas, it sends the price of a loaf of bread shooting upwards and starts food riots on three continents. It's that everything is so inextricably tied together. It's that, all of a sudden, those grim Club of Rome types who, way back in the 1970s, went on and on about the "limits to growth" suddenly seem how best to put it, right.

All of a sudden it isn't morning in America, it's dusk on planet Earth.

There's a number -- a new number -- that makes this point most powerfully. It may now be the most important number on Earth: 350. As in parts per million (ppm) of carbon dioxide in the atmosphere.

A few weeks ago, our foremost climatologist, NASA's Jim Hansen, submitted a paper to Science magazine with several co-authors. The abstract attached to it argued -- and I have never read stronger language in a scientific paper -- "if humanity wishes to preserve a planet similar to that on which civilization developed and to which life on earth is adapted, paleoclimate evidence and ongoing climate change suggest that CO2 will need to be reduced from its current 385 ppm to at most 350 ppm." Hansen cites six irreversible tipping points -- massive sea level rise and huge changes in rainfall patterns, among them -- that we'll pass if we don't get back down to 350 soon; and the first of them, judging by last summer's insane melt of Arctic ice, may already be behind us.

So it's a tough diagnosis. It's like the doctor telling you that your cholesterol is way too high and, if you don't bring it down right away, you're going to have a stroke. So you take the pill, you swear off the cheese, and, if you're lucky, you get back into the safety zone before the coronary. It's like watching the tachometer edge into the red zone and knowing that you need to take your foot off the gas before you hear that clunk up front.

In this case, though, it's worse than that because we're not taking the pill and we are stomping on the gas -- hard. Instead of slowing down, we're pouring on the coal, quite literally. Two weeks ago came the news that atmospheric carbon dioxide had jumped 2.4 parts per million last year -- two decades ago, it was going up barely half that fast.

And suddenly, the news arrives that the amount of methane, another potent greenhouse gas, accumulating in the atmosphere, has unexpectedly begun to soar as well. Apparently, we've managed to warm the far north enough to start melting huge patches of permafrost and massive quantities of methane trapped beneath it have begun to bubble forth.

And don't forget: China is building more power plants; India is pioneering the $2,500 car, and Americans are converting to TVs the size of windshields which suck juice ever faster.

Here's the thing. Hansen didn't just say that, if we didn't act, there was trouble coming; or, if we didn't yet know what was best for us, we'd certainly be better off below 350 ppm of carbon dioxide in the atmosphere. His phrase was: "if we wish to preserve a planet similar to that on which civilization developed." A planet with billions of people living near those oh-so-floodable coastlines. A planet with ever more vulnerable forests. (A beetle, encouraged by warmer temperatures, has already managed to kill 10 times more trees than in any previous infestation across the northern reaches of Canada this year. This means far more carbon heading for the atmosphere and apparently dooms Canada's efforts to comply with the Kyoto Protocol, already in doubt because of its decision to start producing oil for the U.S. from Alberta's tar sands.)

We're the ones who kicked the warming off; now, the planet is starting to take over the job. Melt all that Arctic ice, for instance, and suddenly the nice white shield that reflected 80% of incoming solar radiation back into space has turned to blue water that absorbs 80% of the sun's heat. Such feedbacks are beyond history, though not in the sense that Francis Fukuyama had in mind.

And we have, at best, a few years to short-circuit them -- to reverse course. Here's the Indian scientist and economist Rajendra Pachauri, who accepted the Nobel Prize on behalf of the Intergovernmental Panel on Climate Change last year (and, by the way, got his job when the Bush administration, at the behest of Exxon Mobil, forced out his predecessor): "If there's no action before 2012, that's too late. What we do in the next two to three years will determine our future. This is the defining moment."

In the next two or three years, the nations of the world are supposed to be negotiating a successor treaty to the Kyoto Accord. When December 2009 rolls around, heads of state are supposed to converge on Copenhagen to sign a treaty -- a treaty that would go into effect at the last plausible moment to heed the most basic and crucial of limits on atmospheric CO2.

If we did everything right, says Hansen, we could see carbon emissions start to fall fairly rapidly and the oceans begin to pull some of that CO2 out of the atmosphere. Before the century was out we might even be on track back to 350. We might stop just short of some of those tipping points, like the Road Runner screeching to a halt at the very edge of the cliff.

Chinesecoalplant

More likely, though, we're the Coyote -- because "doing everything right" means that political systems around the world would have to take enormous and painful steps right away. It means no more new coal-fired power plants anywhere, and plans to quickly close the ones already in operation. (Coal-fired power plants operating the way they're supposed to are, in global warming terms, as dangerous as nuclear plants melting down.) It means making car factories turn out efficient hybrids next year, just the way we made them turn out tanks in six months at the start of World War II. It means making trains an absolute priority and planes a taboo.

It means making every decision wisely because we have so little time and so little money, at least relative to the task at hand. And hardest of all, it means the rich countries of the world sharing resources and technology freely with the poorest ones, so that they can develop dignified lives without burning their cheap coal.

That's possible -- we launched a Marshall Plan once, and we could do it again, this time in relation to carbon. But in a month when the President has, once more, urged us to drill in the Arctic National Wildlife Refuge, that seems unlikely. In a month when the alluring phrase "gas tax holiday" has danced into our vocabulary, it's hard to see (though it was encouraging to see that Clinton's gambit didn't sway many voters). And if it's hard to imagine sacrifice here, imagine China, where people produce a quarter as much carbon apiece as we do.

Still, as long as it's not impossible, we've got a duty to try. In fact, it's about the most obvious duty humans have ever faced.

A few of us have just launched a new campaign, 350.org. Its only goal is to spread this number around the world in the next 18 months, via art and music and ruckuses of all kinds, in the hope that it will push those post-Kyoto negotiations in the direction of reality.

After all, those talks are our last chance; you just can't do this one light bulb at a time. And if this 350.org campaign is a Hail Mary pass, well, sometimes those passes get caught.

We do have one thing going for us: This new tool, the Web which, at least, allows you to imagine something like a grassroots global effort. If the Internet was built for anything, it was built for sharing this number, for making people understand that "350" stands for a kind of safety, a kind of possibility, a kind of future.

Hansen's words were well-chosen: "a planet similar to that on which civilization developed." People will doubtless survive on a non-350 planet, but those who do will be so preoccupied, coping with the endless unintended consequences of an overheated planet, that civilization may not.

Civilization is what grows up in the margins of leisure and security provided by a workable relationship with the natural world. That margin won't exist, at least not for long, this side of 350. That's the limit we face.

Copyright 2008 Bill McKibben

Sunday, May 11, 2008

It's All About Overpopulation, Over Consumption ...
The Numbers Don't Lie

Earthside Comments: We haven't posted in a couple of days because we have been mentally and emotionally digesting a look again at Dr. Albert Bartlett's lecture on exponential growth, population and energy. In light of recent economic developments, Bartlett's talk takes on new immediacy -- that is -- the end IS near.

Please look at the "Most Important Video You'll Ever See" below ... make sure and take a little time and view the continuing parts on YouTube. Our destiny is all there.

However, in this post we've included some other important links, news, graphs and articles. They are all corroborating evidence and analysis for the fact that there are too many people making too many demands for the Earth's resources -- a breaking point has or will soon occur.

The tragic part of this is that we've know about this problem for years now ... but we (the human species as a whole) have done almost nothing to mitigate the coming disaster. It is now too late. Though it is unfashionable, even considered impolite by some to speak plainly of our dismal future, Earthside will certainly not indulge in 'feel good' optimism for the sake of causing anyone to remain in their state of comfortable denial.

The truth is that world population is now estimated at over 6.7 billion people, the U.S. at over 300 million -- and everyone of us wants/needs food, shelter and clothing. Shortages are occurring in the resources that provide basic necessities ... check the first link ... and we all have heard by now about insufficiency of grain supplies around the globe.

But it is oil that makes the modern world go 'round. You may have plenty of rice in Brazil but if you cannot reasonably afford to ship it to Baton Rouge because the cost of a gallon of diesel fuel is skyrocketing, then there are going to be shortages of supplies where they are needed or shortages of ability to pay.

We still believe that 'knowledge is power' which is the great value in reading and viewing the information imparted here. You will know what is really going on and what is about to happen -- your ability to make wise decisions is therefore greatly enhanced.

Whether a giant crash suddenly plunges us into the abyss or we slide slowly into the post carbon energy world, the important lesson we can take away from the Bartlett lecture and the other items posted here is that it is happening ... now.

Link: Energy Shortage Web Site

Link: The Price of a Barrel of Petroleum - Around the World

Link: Reality | Mark A. Goldman/Information Clearing House

These are interesting times. With oil trading above $100/barrel, a larger portion of our national wealth is being spent on the cost of energy.

We are very near or already at what geologists call peak oil. Peak oil is the point at which the maximum rate that oil can be extracted from the earth’s crust can only relentlessly decline from that point forward, due to geological and technological realities. Prior to peak oil it was usually possible to extract as much oil as we needed to meet growing demand while keeping prices relatively low. After peak oil it will be impossible to do that. From now on, oil will become increasingly scarce. The black gold will still be allocated according to price, but as supplies dwindle and prices increase, more and more people will become less affluent, i.e., poorer than they used to be. The age of cheap energy is over. Unfortunately, soon this will be true for all non-renewable resources as well.

This means that our economy, which runs on oil, will not be able to sustain past levels of growth indefinitely, if at all. Pundits on TV are discussing how long it’s going to take before the current recession will turn around and we come out the other side ready for the next round of growth. In my view, this recession is not going to end any time soon and without appropriate leadership it might not end in our lifetimes. The result might easily look like an economy in the middle of a very long slow motion train wreck.

If this sounds like a dire prediction, it doesn't have to be... but it very well might be. Americans, in general, seem averse to contemplating reality. Up until now it’s been easy to get away with it, for as long as energy was cheap we were all free to pursue personal interests and put most everything else out of our minds. But soon reality is going to confront us at every turn. For some, it's already happening.

For example, without cheap oil our food supply will begin to contract. American corporate agriculture runs on oil. It takes oil to prepare the earth, it takes oil to fertilize the fields, it takes oil to harvest the crops, it takes oil to kill the bugs, it takes oil to ship the produce, it takes oil to keep things cold, and it takes oil to cook our food. Meanwhile, bees are dying, bats are dying, while our oceans are being over-fished, polluted with non-biodegradable plastics, and poisoned with PCBs and other chemicals.

Now consider, the cost of fuel is not going to go down except for short-term market fluctuations. Producing energy efficient cars will help, but our oil based, combustion engine based economy, is coming to a close. Replacement technologies are not in place and it takes time to build infrastructure. The longer we delay the development of enlightened energy and transportation strategies, the longer and deeper economic dislocations will be.

A lot of people don’t have much money now and they have less credit and are less credit worthy than they used to be. We are the only industrialized nation with a zero to negative savings rate. Very few industries do not in some way depend on energy and at the same time nearly every corporation in America is committed to growing their profits at double-digit rates. There is not going to be double-digit growth in America. If significant growth occurs it will probably take place in emerging markets but only to the extent that energy allows. In the US, where citizens, government, and corporate executives are somewhat delusional, without society reinventing itself, the economy will decline or stagnate. You can argue these points with me, and I'm always open to it, but in the end, reality will settle the argument.

As corporate executives confront this reality, one can only imagine what kinds of strategies they will use to try to insure their double-digit goals. Their strategies have been evolving for a long time. Look how much effort and money they expend corrupting government policy and officials with their teams of lawyers and lobbyists. Why do they do that? Because they don’t know how to earn double-digit growth legitimately. The only way they can do it is to dip into our pockets and extract our wealth through deceit, corruption and back door government collusion.

Peak oil has been kept a corporate and government secret since 1956. We could have been planning for it all along had not a cadre of corporate and government power brokers diverted our public wealth into their self serving strategies.

So now we have some very severe problems facing us. From government we get lies, secrecy, and obfuscation to prevent what citizens might do if we only understood how we’ve all been cheated.

Officials are not stupid or uninformed… They know and accept that we are in Iraq to control resources. They knew if they had told us what they were up to in the beginning, we wouldn’t have let them get away with defacing the Constitution, murdering a million people and injuring and displacing millions more to take control of the oil. They sugar coat and lie now about almost everything they do. No matter what the politicians tell you, we are not leaving Iraq, at least not until we are sure that we will have certain unfettered access to the oil… or until we have some enlightened leadership.

It’s important to understand this: If we approach these problems with anger, fear, and knee jerk responses, we will surely make things much worse. And yet for an awful lot of people, that will be the initial response to being confronted with, and being awakened by-- reality. The problems we face are solvable. Human beings are capable of great creativity, compassion, and sacrifice. But we can’t solve problems if we are afraid to talk about them, and we can’t manifest a creative environment for developing solutions if we are afraid to tell the truth. The truth about what? In this case, the truth about everything! It should be obvious by now, that you can’t lie about some things and expect that those lies will not eventually poison or corrupt most everything else. The health and well being of every human soul is in some way dependent, interconnected and related to ever other.

We can’t arrive at optimum solutions if we are so afraid to think for ourselves and examine our preconceived ideas and accepted myths. I don’t think we will be able to find meaningful solutions to the problems we face, unless the great majority of us become willing to change our interests, our habits, and our attitudes. This is not going to be easy.

At first, very few politicians, corporate executives, or religious leaders will look kindly on the prospect of examining the delusions and myths we grew up with. In fact they will probably go to any extreme to tell you what I’m saying is just a lot of nonsense. No one who has influence and power over others will want to give it up. But make no mistake… as Dr. Barlett1 says, the problems are all going to get solved… the only question is how painful is it going to be and will these problems get solved with any semblance of compassion, justice and fairness?

If we attempt to look out only for ourselves, we can be pretty sure that’s what others will do too. And if we do that, I can assure you, the suffering will be unprecedented. We are all members of one family. We need to remember that and realize that every one of us has a stake in finding viable solutions, where no one is left out, and where no one will be asked or be required to sacrifice their basic rights or dignity.

Petrolconsumptionperday
To U.S. readers ... this chart means that we have the furthest to fall and we will have the hardest landing.

Percapitaoilproduction
Oil Production Per Capita -- We peaked years ago by this metric.
With greater energy demands coming from growing populations and economies in China and India,
the impact of this reality is enormous.



The Most IMPORTANT Video You'll Ever See
By Dr. Albert Bartlett

Click on the YouTube link to get to the next parts of this lecture.


Link: Is Oil Headed for $200? | Calgary Herald

Twenty short weeks ago, the world was struggling to digest the idea of $100 US oil.

Today, with oil prices breaching new records almost daily, even ordinarily circumspect soothsayers are talking about the prospect of a super price spike that could cause a run to $200 -- a concept that would have been virtually unthinkable 12 months ago.

And when some of the finest economic minds on the continent -- people like Daniel Yergin, Matthew Simmons and Jeff Rubin -- are willing to openly discuss the permutations and ramifications of life in the shadow of $200 oil, it's hard not to think that a scenario that was once a pipe dream may actually be on the horizon.

After a week in which oil prices set new records daily while passing through two so-called psychological barriers -- $120 and $125 -- before settling in at $125.96 Friday, it's easy to see why the oil bulls are running wild and the bears are nowhere to be found.

"Oil will go through $200 like a hot knife through butter," insisted Simmons, the chairman of investment bank Simmons and Co. International and one of the main champions of the controversial "peak oil" theory, which holds that virtually all of the significant oil pools we are likely to discover have already been found.

Rubin, the outspoken chief economist at CIBC World Markets, has gone so far as to predict oil prices will average $225 a barrel by 2012. Two weeks ago, when he made that call, there were more than a few sniggers around the investment community.
Nobody is laughing today. Since the start of 2008, the price of oil has jumped 25 per cent. Year over year, it has more than doubled.

Not surprisingly given those statistics, oilpatch stocks were also on a tear all week, setting records of their own and pushing the TSX energy index to a year-to- date high of 3941.11 before falling back to end the week at 3922.55.

That oilpatch bellwethers like Canadian Natural Resources Ltd., EnCana Corp. and Suncor Energy Inc. have been rolling out record or near-record first-quarter earnings, and reports that show them to be awash in cash, has only helped fuel the buying frenzy.

Ditto for natural gas prices, up more than 50 per cent since the start of the year and threatening to revisit record highs of their own should summer demand reach anticipated levels. That's a scenario that would produce a so-called "perfect storm" for companies like Canadian Natural, which is heavily gas leveraged but has substantial oil interests and is poised to bring its Horizon oilsands project on stream this summer.
Even unprecedented gasoline pump prices across North America -- not to mention soaring jet fuel and diesel prices -- have been unable to put a damper on the Black Gold Rush of 2008.

Nor, more importantly, have they yet caused consumers to dramatically change their behaviour.

At some point that will happen, insists Yergin, chairman of the prestigious Cambridge Energy Research Associates and one of the most respected energy analysts on the continent.

"Price really matters," Yergin told reporters last week. "It doesn't happen overnight but the laws of economics have not been abolished."

His point is well taken. But clearly, we haven't reached that point -- and hence the renewed conjecture about $200 oil.

Ironically, as OPEC secretary general Abdalla Salem El-Badiri reiterated again last week, there is no shortage of oil in the world.

Nor is there any reason for OPEC, which produces 40 per cent of the world's petroleum, to increase production levels, in spite of U.S. President George W. Bush's promise he will once again ask cartel members to up their output -- a silly political gambit that ignores OPEC's own repeated admissions that it can no longer move global markets or prices at will.

What there is, however, is a widespread fear that geopolitical instabilities could disrupt the flow of oil to consuming nations at any time.

Consider the evidence: Nigeria, the 11th largest oil producer in the world, is in a state of loose anarchy. Iraq, with the fourth-largest reserves in the world, is a war zone. Iran, third-largest reserves in the world, is a powder keg. Venezuela, second most important supplier to the United States after Canada, is at war with international oil companies.

Add in the unfettered consumption of oil by China, India and an emerging Middle East economic bloc, and it becomes apparent that the global dynamics of oil supply and demand are in the midst of an unprecedented restructuring.

As ARC Financial senior economist Peter Tertzakian likes to say, when it comes to oil consumption in the aforementioned countries, their leaders are not going to be able to put the genie back in the bottle.

In other words, don't expect a fall-off in the global demand for oil in the months and weeks ahead.

Ultimately, as Yergin argues, when oil prices get high enough, there will be a shift to alternative fuel sources.

But as we've also seen in recent weeks, global shortages in basic foodstuffs caused by the sudden reallocation of agricultural production to biofuels underscores the complications of any widespread move away from oil.

It also serves as a pointed reminder that any meaningful attempt to replace oil as a primary source of energy in the developed world will not happen overnight. In fact, most observers agree it will occur only after an entrenched period of high prices convinces investors that a new world energy (pecking) order must be established.

That equation has not gone unnoticed by global investment fund managers who, knowing a good bet when they see it and anxious to make up for the impact of the devaluation of the U.S. dollar on their portfolios over the past year, are one of the primary forces behind oil's meteoric rise to record heights.

Do all of those considerations pave the way for a run to $200 oil?
The jury is still out. But the betting is heavy that oil prices will almost certainly go markedly higher before they settle or, dare we say it, perhaps even fall back.

© The Calgary Herald 2008

Thursday, May 08, 2008

It's All About Race, Hillary?

Are you listening to an advocate for the "white supremacist" movement?

It is tragic what has happened to this woman.

Wednesday, May 07, 2008

Dimocrats Finally Decide?

Earthside Comments: The danger of the most cynically corporate major party candidate for President getting elected -- Hillary Clinton -- appears to now have passed us. That is good news.

Earthside, as you know, is a supporter of the Green Party ... because principle should come before politics, because the political process in this nation is horribly corrupt, and because the global situation is so dire that our conscience dictates that voting for truth is really the only alternative.

Sadly, in the world such as it is and in the still declining United States, the next leader of the executive branch of the federal government is going to most likely be either Barack Obama or George Bush, Jr., Jr. (who is ironically much older than the current occupant of the Oval Office ... ha!). If it is going to be one or the other, of course, we prefer Obama.

We've listened to Barack Obama reading his book "Dreams From My Father" and are sufficiently impressed with his background that we think he might hold the potential for a bit of a departure from business as usual. But we're not holding our breath.

We'll all get to see what happens now ... and we encourage readers of this web site to familiarize themselves with the Values of the Green Party and register to vote as a Green. That simple step permits a person to still vote for whomever they like in the general election, but it sends a powerful message that we demand real, genuine change and reform.

Monday, May 05, 2008

Consumption and Materialism

Earthside Comments: First here is a link to the web video "The Story of Stuff". It explains the chain we in this country are involved in that is surely sickening and impoverishing us.

The second item is a very good article that further explains what this philosophy of endless consumption is doing to us.

This era of consuming, of materialism, is going to end. The question is whether we have a soft or hard landing. Readers of this web site know that the time for a soft landing has passed. The best we can hope for is a medium crash ... and that window is also closing rapidly.

As individuals, families and communities we can conserve and begin to change the way we live. As a nation, however, we are going to have to demand dramatic political and economic revolution in order to avoid catastrophe.

Perhaps all mega-transnational corporations should be broken to pieces as a start. Perhaps genuine 'people-power' -- citizens running and directing our own governments and economies -- would also help in the transformation to a sustainable way of life.

Whatever we do, we've got to get busy quickly.

Time is running out.

The Story of Stuff

Link: The Gospel of Consumption | Jeffrey Kaplan/Orion Magazine/CommonDreams.org

Private cars were relatively scarce in 1919 and horse-drawn conveyances were still common. In residential districts, electric streetlights had not yet replaced many of the old gaslights. And within the home, electricity remained largely a luxury item for the wealthy.

Just ten years later things looked very different. Cars dominated the streets and most urban homes had electric lights, electric flat irons, and vacuum cleaners. In upper-middle-class houses, washing machines, refrigerators, toasters, curling irons, percolators, heating pads, and popcorn poppers were becoming commonplace. And although the first commercial radio station didn’t begin broadcasting until 1920, the American public, with an adult population of about 122 million people, bought 4,438,000 radios in the year 1929 alone.

But despite the apparent tidal wave of new consumer goods and what appeared to be a healthy appetite for their consumption among the well-to-do, industrialists were worried. They feared that the frugal habits maintained by most American families would be difficult to break. Perhaps even more threatening was the fact that the industrial capacity for turning out goods seemed to be increasing at a pace greater than people’s sense that they needed them.

It was this latter concern that led Charles Kettering, director of General Motors Research, to write a 1929 magazine article called “Keep the Consumer Dissatisfied.” He wasn’t suggesting that manufacturers produce shoddy products. Along with many of his corporate cohorts, he was defining a strategic shift for American industry-from fulfilling basic human needs to creating new ones.

In a 1927 interview with the magazine Nation’s Business, Secretary of Labor James J. Davis provided some numbers to illustrate a problem that the New York Times called “need saturation.” Davis noted that “the textile mills of this country can produce all the cloth needed in six months’ operation each year” and that 14 percent of the American shoe factories could produce a year’s supply of footwear. The magazine went on to suggest, “It may be that the world’s needs ultimately will be produced by three days’ work a week.”

Business leaders were less than enthusiastic about the prospect of a society no longer centered on the production of goods. For them, the new “labor-saving” machinery presented not a vision of liberation but a threat to their position at the center of power. John E. Edgerton, president of the National Association of Manufacturers, typified their response when he declared: “I am for everything that will make work happier but against everything that will further subordinate its importance. The emphasis should be put on work-more work and better work.” “Nothing,” he claimed, “breeds radicalism more than unhappiness unless it is leisure.”

By the late 1920s, America’s business and political elite had found a way to defuse the dual threat of stagnating economic growth and a radicalized working class in what one industrial consultant called “the gospel of consumption”-the notion that people could be convinced that however much they have, it isn’t enough. President Herbert Hoover’s 1929 Committee on Recent Economic Changes observed in glowing terms the results: “By advertising and other promotional devices . . . a measurable pull on production has been created which releases capital otherwise tied up.” They celebrated the conceptual breakthrough: “Economically we have a boundless field before us; that there are new wants which will make way endlessly for newer wants, as fast as they are satisfied.”

Today “work and more work” is the accepted way of doing things. If anything, improvements to the labor-saving machinery since the 1920s have intensified the trend. Machines can save labor, but only if they go idle when we possess enough of what they can produce. In other words, the machinery offers us an opportunity to work less, an opportunity that as a society we have chosen not to take. Instead, we have allowed the owners of those machines to define their purpose: not reduction of labor, but “higher productivity”-and with it the imperative to consume virtually everything that the machinery can possibly produce.

From the earliest days of the Age of Consumerism there were critics. One of the most influential was Arthur Dahlberg, whose 1932 book Jobs, Machines, and Capitalism was well known to policymakers and elected officials in Washington. Dahlberg declared that “failure to shorten the length of the working day . . . is the primary cause of our rationing of opportunity, our excess industrial plant, our enormous wastes of competition, our high pressure advertising, [and] our economic imperialism.” Since much of what industry produced was no longer aimed at satisfying human physical needs, a four-hour workday, he claimed, was necessary to prevent society from becoming disastrously materialistic. “By not shortening the working day when all the wood is in,” he suggested, the profit motive becomes “both the creator and satisfier of spiritual needs.” For when the profit motive can turn nowhere else, “it wraps our soap in pretty boxes and tries to convince us that that is solace to our souls.”

There was, for a time, a visionary alternative. In 1930 Kellogg Company, the world’s leading producer of ready-to-eat cereal, announced that all of its nearly fifteen hundred workers would move from an eight-hour to a six-hour workday. Company president Lewis Brown and owner W. K. Kellogg noted that if the company ran “four six-hour shifts . . . instead of three eight-hour shifts, this will give work and paychecks to the heads of three hundred more families in Battle Creek.”

This was welcome news to workers at a time when the country was rapidly descending into the Great Depression. But as Benjamin Hunnicutt explains in his book Kellogg’s Six-Hour Day, Brown and Kellogg wanted to do more than save jobs. They hoped to show that the “free exchange of goods, services, and labor in the free market would not have to mean mindless consumerism or eternal exploitation of people and natural resources.” Instead “workers would be liberated by increasingly higher wages and shorter hours for the final freedom promised by the Declaration of Independence-the pursuit of happiness.”

To be sure, Kellogg did not intend to stop making a profit. But the company leaders argued that men and women would work more efficiently on shorter shifts, and with more people employed, the overall purchasing power of the community would increase, thus allowing for more purchases of goods, including cereals.

A shorter workday did entail a cut in overall pay for workers. But Kellogg raised the hourly rate to partially offset the loss and provided for production bonuses to encourage people to work hard. The company eliminated time off for lunch, assuming that workers would rather work their shorter shift and leave as soon as possible. In a “personal letter” to employees, Brown pointed to the “mental income” of “the enjoyment of the surroundings of your home, the place you work, your neighbors, the other pleasures you have [that are] harder to translate into dollars and cents.” Greater leisure, he hoped, would lead to “higher standards in school and civic . . . life” that would benefit the company by allowing it to “draw its workers from a community where good homes predominate.”

It was an attractive vision, and it worked. Not only did Kellogg prosper, but journalists from magazines such as Forbes and BusinessWeek reported that the great majority of company employees embraced the shorter workday. One reporter described “a lot of gardening and community beautification, athletics and hobbies . . . libraries well patronized and the mental background of these fortunate workers . . . becoming richer.”

A U.S. Department of Labor survey taken at the time, as well as interviews Hunnicutt conducted with former workers, confirm this picture. The government interviewers noted that “little dissatisfaction with lower earnings resulting from the decrease in hours was expressed, although in the majority of cases very real decreases had resulted.” One man spoke of “more time at home with the family.” Another remembered: “I could go home and have time to work in my garden.” A woman noted that the six-hour shift allowed her husband to “be with 4 boys at ages it was important.”

Those extra hours away from work also enabled some people to accomplish things that they might never have been able to do otherwise. Hunnicutt describes how at the end of her interview an eighty-year-old woman began talking about ping-pong. “We’d get together. We had a ping-pong table and all my relatives would come for dinner and things and we’d all play ping-pong by the hour.” Eventually she went on to win the state championship.

Many women used the extra time for housework. But even then, they often chose work that drew in the entire family, such as canning. One recalled how canning food at home became “a family project” that “we all enjoyed,” including her sons, who “opened up to talk freely.” As Hunnicutt puts it, canning became the “medium for something more important than preserving food. Stories, jokes, teasing, quarreling, practical instruction, songs, griefs, and problems were shared. The modern discipline of alienated work was left behind for an older . . . more convivial kind of working together.”

This was the stuff of a human ecology in which thousands of small, almost invisible, interactions between family members, friends, and neighbors create an intricate structure that supports social life in much the same way as topsoil supports our biological existence. When we allow either one to become impoverished, whether out of greed or intemperance, we put our long-term survival at risk.

Our modern predicament is a case in point. By 2005 per capita household spending (in inflation-adjusted dollars) was twelve times what it had been in 1929, while per capita spending for durable goods-the big stuff such as cars and appliances-was thirty-two times higher. Meanwhile, by 2000 the average married couple with children was working almost five hundred hours a year more than in 1979. And according to reports by the Federal Reserve Bank in 2004 and 2005, over 40 percent of American families spend more than they earn. The average household carries $18,654 in debt, not including home-mortgage debt, and the ratio of household debt to income is at record levels, having roughly doubled over the last two decades. We are quite literally working ourselves into a frenzy just so we can consume all that our machines can produce.

Yet we could work and spend a lot less and still live quite comfortably. By 1991 the amount of goods and services produced for each hour of labor was double what it had been in 1948. By 2006 that figure had risen another 30 percent. In other words, if as a society we made a collective decision to get by on the amount we produced and consumed seventeen years ago, we could cut back from the standard forty-hour week to 5.3 hours per day-or 2.7 hours if we were willing to return to the 1948 level. We were already the richest country on the planet in 1948 and most of the world has not yet caught up to where we were then.

Rather than realizing the enriched social life that Kellogg’s vision offered us, we have impoverished our human communities with a form of materialism that leaves us in relative isolation from family, friends, and neighbors. We simply don’t have time for them. Unlike our great-grandparents who passed the time, we spend it. An outside observer might conclude that we are in the grip of some strange curse, like a modern-day King Midas whose touch turns everything into a product built around a microchip.

Of course not everybody has been able to take part in the buying spree on equal terms. Millions of Americans work long hours at poverty wages while many others can find no work at all. However, as advertisers well know, poverty does not render one immune to the gospel of consumption.

Meanwhile, the influence of the gospel has spread far beyond the land of its origin. Most of the clothes, video players, furniture, toys, and other goods Americans buy today are made in distant countries, often by underpaid people working in sweatshop conditions. The raw material for many of those products comes from clearcutting or strip mining or other disastrous means of extraction. Here at home, business activity is centered on designing those products, financing their manufacture, marketing them-and counting the profits.

Kellogg's vision, despite its popularity with his employees, had little support among his fellow business leaders. But Dahlberg’s book had a major influence on Senator (and future Supreme Court justice) Hugo Black who, in 1933, introduced legislation requiring a thirty-hour workweek. Although Roosevelt at first appeared to support Black’s bill, he soon sided with the majority of businessmen who opposed it. Instead, Roosevelt went on to launch a series of policy initiatives that led to the forty-hour standard that we more or less observe today.

By the time the Black bill came before Congress, the prophets of the gospel of consumption had been developing their tactics and techniques for at least a decade. However, as the Great Depression deepened, the public mood was uncertain, at best, about the proper role of the large corporation. Labor unions were gaining in both public support and legal legitimacy, and the Roosevelt administration, under its New Deal program, was implementing government regulation of industry on an unprecedented scale. Many corporate leaders saw the New Deal as a serious threat. James A. Emery, general counsel for the National Association of Manufacturers (NAM), issued a “call to arms” against the “shackles of irrational regulation” and the “back-breaking burdens of taxation,” characterizing the New Deal doctrines as “alien invaders of our national thought.”

In response, the industrial elite represented by NAM, including General Motors, the big steel companies, General Foods, DuPont, and others, decided to create their own propaganda. An internal NAM memo called for “re-selling all of the individual Joe Doakes on the advantages and benefits he enjoys under a competitive economy.” NAM launched a massive public relations campaign it called the “American Way.” As the minutes of a NAM meeting described it, the purpose of the campaign was to link “free enterprise in the public consciousness with free speech, free press and free religion as integral parts of democracy.”

Consumption was not only the linchpin of the campaign; it was also recast in political terms. A campaign booklet put out by the J. Walter Thompson advertising agency told readers that under “private capitalism, the Consumer, the Citizen is boss,” and “he doesn’t have to wait for election day to vote or for the Court to convene before handing down his verdict. The consumer ‘votes’ each time he buys one article and rejects another.”

According to Edward Bernays, one of the founders of the field of public relations and a principal architect of the American Way, the choices available in the polling booth are akin to those at the department store; both should consist of a limited set of offerings that are carefully determined by what Bernays called an “invisible government” of public-relations experts and advertisers working on behalf of business leaders. Bernays claimed that in a “democratic society” we are and should be “governed, our minds . . . molded, our tastes formed, our ideas suggested, largely by men we have never heard of.”

NAM formed a national network of groups to ensure that the booklet from J. Walter Thompson and similar material appeared in libraries and school curricula across the country. The campaign also placed favorable articles in newspapers (often citing “independent” scholars who were paid secretly) and created popular magazines and film shorts directed to children and adults with such titles as “Building Better Americans,” “The Business of America’s People Is Selling,” and “America Marching On.”

Perhaps the biggest public relations success for the American Way campaign was the 1939 New York World’s Fair. The fair’s director of public relations called it “the greatest public relations program in industrial history,” one that would battle what he called the “New Deal propaganda.” The fair’s motto was “Building the World of Tomorrow,” and it was indeed a forum in which American corporations literally modeled the future they were determined to create. The most famous of the exhibits was General Motors’ 35,000-square-foot Futurama, where visitors toured Democracity, a metropolis of multilane highways that took its citizens from their countryside homes to their jobs in the skyscraper-packed central city.

For all of its intensity and spectacle, the campaign for the American Way did not create immediate, widespread, enthusiastic support for American corporations or the corporate vision of the future. But it did lay the ideological groundwork for changes that came after the Second World War, changes that established what is still commonly called our post-war society.

The war had put people back to work in numbers that the New Deal had never approached, and there was considerable fear that unemployment would return when the war ended. Kellogg workers had been working forty-eight-hour weeks during the war and the majority of them were ready to return to a six-hour day and thirty-hour week. Most of them were able to do so, for a while. But W. K. Kellogg and Lewis Brown had turned the company over to new managers in 1937.

The new managers saw only costs and no benefits to the six-hour day, and almost immediately after the end of the war they began a campaign to undermine shorter hours. Management offered workers a tempting set of financial incentives if they would accept an eight-hour day. Yet in a vote taken in 1946, 77 percent of the men and 87 percent of the women wanted to return to a thirty-hour week rather than a forty-hour one. In making that choice, they also chose a fairly dramatic drop in earnings from artificially high wartime levels.

The company responded with a strategy of attrition, offering special deals on a department-by-department basis where eight hours had pockets of support, typically among highly skilled male workers. In the culture of a post-war, post-Depression U.S., that strategy was largely successful. But not everyone went along. Within Kellogg there was a substantial, albeit slowly dwindling group of people Hunnicutt calls the “mavericks,” who resisted longer work hours. They clustered in a few departments that had managed to preserve the six-hour day until the company eliminated it once and for all in 1985.

The mavericks rejected the claims made by the company, the union, and many of their co-workers that the extra money they could earn on an eight-hour shift was worth it. Despite the enormous difference in societal wealth between the 1930s and the 1980s, the language the mavericks used to explain their preference for a six-hour workday was almost identical to that used by Kellogg workers fifty years earlier. One woman, worried about the long hours worked by her son, said, “He has no time to live, to visit and spend time with his family, and to do the other things he really loves to do.”

Several people commented on the link between longer work hours and consumerism. One man said, “I was getting along real good, so there was no use in me working any more time than I had to.” He added, “Everybody thought they were going to get rich when they got that eight-hour deal and it really didn’t make a big difference. . . . Some went out and bought automobiles right quick and they didn’t gain much on that because the car took the extra money they had.”

The mavericks, well aware that longer work hours meant fewer jobs, called those who wanted eight-hour shifts plus overtime “work hogs.” “Kellogg’s was laying off people,” one woman commented, “while some of the men were working really fantastic amounts of overtime-that’s just not fair.” Another quoted the historian Arnold Toynbee, who said, “We will either share the work, or take care of people who don’t have work.”

People in the depression-wracked 1930s, with what seems to us today to be a very low level of material goods, readily chose fewer work hours for the same reasons as some of their children and grandchildren did in the 1980s: to have more time for themselves and their families. We could, as a society, make a similar choice today.

But we cannot do it as individuals. The mavericks at Kellogg held out against company and social pressure for years, but in the end the marketplace didn’t offer them a choice to work less and consume less. The reason is simple: that choice is at odds with the foundations of the marketplace itself-at least as it is currently constructed. The men and women who masterminded the creation of the consumerist society understood that theirs was a political undertaking, and it will take a powerful political movement to change course today.

Bernays’s version of a “democratic society,” in which political decisions are marketed to consumers, has many modern proponents. Consider a comment by Andrew Card, George W. Bush’s former chief of staff. When asked why the administration waited several months before making its case for war against Iraq, Card replied, “You don’t roll out a new product in August.” And in 2004, one of the leading legal theorists in the United States, federal judge Richard Posner, declared that “representative democracy . . . involves a division between rulers and ruled,” with the former being “a governing class,” and the rest of us exercising a form of “consumer sovereignty” in the political sphere with “the power not to buy a particular product, a power to choose though not to create.”

Sometimes an even more blatant antidemocratic stance appears in the working papers of elite think tanks. One such example is the prominent Harvard political scientist Samuel Huntington’s 1975 contribution to a Trilateral Commission report on “The Crisis of Democracy.” Huntington warns against an “excess of democracy,” declaring that “a democratic political system usually requires some measure of apathy and noninvolvement on the part of some individuals and groups.” Huntington notes that “marginal social groups, as in the case of the blacks, are now becoming full participants in the political system” and thus present the “danger of overloading the political system” and undermining its authority.

According to this elite view, the people are too unstable and ignorant for self-rule. “Commoners,” who are viewed as factors of production at work and as consumers at home, must adhere to their proper roles in order to maintain social stability. Posner, for example, disparaged a proposal for a national day of deliberation as “a small but not trivial reduction in the amount of productive work.” Thus he appears to be an ideological descendant of the business leader who warned that relaxing the imperative for “more work and better work” breeds “radicalism.”

As far back as 1835, Boston workingmen striking for shorter hours declared that they needed time away from work to be good citizens: “We have rights, and we have duties to perform as American citizens and members of society.” As those workers well understood, any meaningful democracy requires citizens who are empowered to create and re-create their government, rather than a mass of marginalized voters who merely choose from what is offered by an “invisible” government. Citizenship requires a commitment of time and attention, a commitment people cannot make if they are lost to themselves in an ever-accelerating cycle of work and consumption.

We can break that cycle by turning off our machines when they have created enough of what we need. Doing so will give us an opportunity to re-create the kind of healthy communities that were beginning to emerge with Kellogg’s six-hour day, communities in which human welfare is the overriding concern rather than subservience to machines and those who own them. We can create a society where people have time to play together as well as work together, time to act politically in their common interests, and time even to argue over what those common interests might be. That fertile mix of human relationships is necessary for healthy human societies, which in turn are necessary for sustaining a healthy planet.

If we want to save the Earth, we must also save ourselves from ourselves. We can start by sharing the work and the wealth. We may just find that there is plenty of both to go around.

© 2008 Orion Magazine


Sunday, May 04, 2008

American Provocateur in Bolivia

Earthside Comments: This is a very interesting story. The vote is taking place today.

Doesn't it seem that wherever in the world there is trouble, or where the powerful are trying to oppressive the peaceful -- you find a ugly American.

Link: U.S. Rancher in Bolivia Showdown | TIME

In his native Montana, Ronald Larsen's current legal straits might be the stuff of an old-fashioned Western movie: A cattle rancher who believes the government and its allies are unfairly trying to seize his land, and picks up a rifle to signal his displeasure. But in contemporary Bolivia, where Larsen makes his home, his recent clash with the authorities is but another instance of rising tension over land-ownership between, on the one hand, left-wing President Evo Morales and his supporters among Bolivia's indigenous population, and on the other, political opponents backed by the country's wealthy eastern elite.

"A small group of ranchers is preventing us from carrying out rightful land reform in the eastern region of Santa Cruz," says Bolivia's Vice Minister of Land, Alejandro Almaraz, who accuses Larsen of attacking his convoy this spring. "U.S.-born Ronald Larsen is leading this violent resistance." But critics counter that Morales is hyping the case to build support ahead of Sunday's referendum in Santa Cruz, where opposition parties are pressing for autonomy from the central government — and ahead of a constitutional referendum later this year on changes that include capping the amount of land that can be owned by a single individual in Bolivia.

Both the autonomy and land-reform issues have sparked violent unrest over the past year, pitting the largely white farmers and ranchers of Bolivia's more affluent lowland east against the impoverished indigenous majority who back Morales, himself an Aymara Indian and the nation's first indigenous President. Little surprise, then, that a national furor has erupted over a confrontation involving government officials and Larsen, 64, who along with his two sons, owns 17 properties totaling 141,000 acres throughout Bolivia, three times as much land as the country's largest city. (Larsen insists his holdings amount to less than 25,000 acres.)

Last month, when Almaraz and aides tried to pass through Larsen's Santa Cruz property — they insist it was the only route by which to reach to nearby indigenous Guarani residents to whom they were delivering land deeds — witnesses say the caravan was fired on by Larsen and his son Duston, 29. The incident was followed by two weeks of rancher roadblocks and violent protests that left 40 indigenous people injured.

Larsen, who arrived in Bolivia in 1968, told a La Paz newspaper that Almaraz's vehicle had entered his property at around 3 a.m. Almaraz, he said, "had not presented any identification. He was drunk and being abusive ... I quieted him with a bullet to his tire. That's the story." But the government insists this wasn't Larsen's first run-in with Almaraz: the rancher is accused of kidnapping the vice minister for eight hours in February. The two alleged incidents prompted the government to file a criminal complaint of "sedition, robbery and other crimes" against Larsen and his son two weeks ago. Prosecutors have yet to decide whether to press formal charges. Neither father nor son has responded publicly to the accusations, and neither responded to repeated requests by TIME for comment.

U.S.-educated Duston Larsen, referring to Morales' efforts to empower Bolivia's indigenous, wrote on his Myspace page in 2007, "I used to think democracy was the best form to govern a country but ... should a larger more uneducated group of people (70%) be in charge of making decisions, running a country and voting?" The fact that Duston, in 2004, won the Mr. Bolivia beauty pageant, in the eyes of many government supporters, puts him in the company of the country's European-oriented elite. (That same year, Miss Bolivia, Gabriela Oviedo, also from the country's east, suggested Bolivia shouldn't be considered an indigenous nation: "I'm from the other side of the country. We are tall, and we are white people, and we know English.) Morales backers say it is precisely this disdain for the indigenous that is driving what they call the secessionist agenda behind Sunday's autonomy referendum — which is not legally sanctioned by the National Electoral Court or recognized by the Organization of American States. But autonomy supporters say they're only seeking states' rights on questions such as taxation, police and public works. "This is a historic demand based on long-standing differences with a La Paz-based central government," says Edilberto Osinaga, managing director of the Chamber of Eastern Farmers.

Autonomy is favored by more than the two-thirds of Santa Cruz voters needed to pass, according to polls, and Governor Ruben Costas, a staunch Morales opponent, said recently that it would "give birth to a new republic." He has since denied that he implied a separatist movement for Santa Cruz or the other three eastern states: Beni, Pando and Tarija, which will hold similar votes this summer. But critics say the remark betrayed an underlying goal of the country's eastern elite: gaining total control over Bolivia's vast natural gas reserves and its most fertile land.

Conflict over land is also at the heart of the clash over a new draft constitution restricting an individual's land holdings to just under 25,000 acres — a profound challenge to the ownership pattern in a country where 10% of the population controls more than 90% of arable land. "This is an extremely problematic proposal," says Osinaga. "You impose those kinds of limits and watch how fast the economy crumbles and poverty grows."

Under its current land reform program, the Morales government has already given landless Bolivians deeds to 25 million acres (10 million hectares). Some analysts suggest that staging the autonomy referendums is simply a political device to give the easterners greater leverage in pressing Morales to renegotiate constitutional changes. Others fear the rising tension points to that classic Western movie resolution: a violent showdown.


Friday, May 02, 2008

Billary Campaign Underneath

The low road, gutter tone of the Clinton(s) campaign is becoming more evident.

Her/his craven ambition such that she/he will do anything to get back in the White House.

This is the kind of politics we are absolutely sick of, isn't it?

Link: Suspicious Phone Messages Target Black Voters in North Carolina | ABC News

Link: Group with Clinton Ties Behind Dubious Robocalls | NPR

Link: Sidney Blumenthal Uses Former Right-Wing Foes To Attack Obama | Peter Dreier/Huffington Post

Former journalist Sidney Blumenthal has been widely credited with coining the term "vast right-wing conspiracy" used by Hillary Clinton in 1998 to describe the alliance of conservative media, think tanks, and political operatives that sought to destroy the Clinton White House where he worked as a high-level aide. A decade later, and now acting as a senior campaign advisor to Senator Clinton, Blumenthal is exploiting that same right-wing network to attack and discredit Barack Obama. And he's not hesitating to use the same sort of guilt-by-association tactics that have been the hallmark of the political right dating back to the McCarthy era. ... MUCH MORE

Thursday, May 01, 2008

Pander Bears: Old Hill and Old Johnny

McCain and Billary demonstrate what is precisely wrong with the way politics and government is conducted now-a-days with their "gasoline tax holiday" pander.

Enough is enough. Isn't it?

Link: Clinton and McCain’s Shameless Gas-Tax Pander | Jonathan Alter/Newsweek.com

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Hillary Clinton has now joined John McCain in proposing the most irresponsible policy idea of the year—an idea that actually could aid the terrorists. What's worse, both of them know that suspending the federal gas tax this summer is a terrible pander, and yet they're pushing it anyway for crass political advantage.

Clinton and McCain have learned a destructive lesson from the Bush era: as Bill Clinton said in 2002, it's better politically to be "strong and wrong" than thoughtful and right. The goal is to depict Barack Obama as an out-of-touch elitist. By any means necessary.

I could highlight a long debate among economists on suspending the gas tax, but there is no debate. Not one respectable economist—and not one environmentalist or foreign policy expert—supports the idea, unless they are official members of the Clinton or McCain campaigns (and even some of them privately oppose it). To relieve suffering at the pump, send another rebate check or provide tax credits or something else, but not this.

Why is this gas pander so bad? Let me count the ways:

* It's a direct transfer of money from motorists to oil companies, which are getting ready this week to again report record obscene profits. If the federal excise tax were lifted, oil companies would simply raise prices and pocket most of the difference. Clinton's proposal to recover the money with a windfall profits tax on oil companies sounds nice but won't happen. That tax was easily blocked by the Senate in December and would likely be blocked again.

* It offers taxpayers only peanuts. The American Association of State Highway and Transportation Officialssays the average savings to motorists this summer would be a total of $30. Did I miss something, or was that measly number somehow not included in Clinton's explanation of her support?

* It sends more hard-earned money to the Middle East, which is terrible for our national security. Remember, 15 of the 19 terrorists on 9/11 came from Saudi Arabia. How did they get the terrorist training? The madrassa indoctrination? Oil money.

* It worsens global warming by encouraging gasoline consumption. When you flee your house in 2020 because of flooding, remember which politicians pandered.

* It makes it more likely you'll have a car accident or will waste even more time in traffic. The proceeds from the gas tax go for highway construction and upgrades. Because the tax (24.4 cents a gallon on diesel fuel) was last raised 15 years ago, our infrastructure is a mess, with potholes and dangerous crossings practically everywhere. Thousands of repair projects will be further delayed.

* It will cost 300,000 construction jobs, according to the Department of Transportation. Makes it kind of ironic when Clinton starts her rallies saying she wants "jobs, jobs, jobs."

* It will cost the U.S. Treasury at least $8.5 billion and probably much more, according to state highway officials. For McCain that's no money at all—merely one month in Iraq. For Clinton it's money she's already spent. She has said in the past that any proceeds from a windfall profits tax would go for renewable energy. The $8.5 billion figure assumes the tax would be reapplied after Labor Day. Fat chance. The one-year costs are probably closer to $30 billion.

* It won't happen anyway because Congress isn't usually quite that stupid, and if it is, President Bush would veto the bill.

So why are McCain and Clinton doing this? Because when they learned that Obama had supported a similar suspension of the Illinois gas tax in Springfield, Ill., before realizing it was a bad idea, they saw an opening. It was like Hillary's whiskey shot in the bar, only sleazier. Try to show that the guy just doesn't get it.

Of course, McCain and Clinton do get it. They get that people are hurting and want some relief, even if this form of it makes no sense. They get that voters have been conned into believing that both candidates are responsible public servants because they're not as bad as some others, so they can trade on that reputation. They get that smacking Obama is more important than anything else on the planet right now, and that for Obama to respond by calling them panderers will take Obama about as far as it took Paul Tsongas in 1992 when he leveled the same charge at Bill Clinton.

In sum, McCain and Clinton get that the media will let them get away with this. You can't forgive them on this one, Lord, for they know exactly what they do.


Fewer Jobs, More Inflation

Earthside Comments: Here it is ... another day, more indications of an economy in big trouble.

Link: U.S. Economy Sheds Jobs As Costs Go Up, Slowdown In Spending Fuels Recession Talk | Associated Press/CBS News

Soaring prices for food, gas and other everyday products pushed up U.S. consumer spending to a faster pace than expected in March.

The Commerce Department reported Thursday that consumer spending was up 0.4 percent in March, double the increase that economists had forecast.

However, once inflation was removed, spending edged up a much slower 0.1 percent. That represented the fourth straight lackluster performance as consumers have been battered by record gasoline prices, a deep slump in housing and rising job layoffs.

In other economic news, the Labor Department reported that claims for unemployment benefits rose by 35,000 to 380,000. That was a much bigger increase than the 18,000 than private economists had expected and highlighted the strains that the weak economy is putting on the labor market.

The report on jobless claims came a day ahead of a report on unemployment for April. Economists expect that report will show that the unemployment rate edged up to 5.2 percent, from 5.1 percent in March. The economy is expected to lose 70,000 jobs, for the fourth straight month of job losses. ...

... The Federal Reserve on Wednesday cut a key interest rate for the seventh time in the past eight months, although it signaled the quarter-point move may be the last for awhile. ...

... Personal incomes rose by 0.3 percent in March, slightly slower than the 0.5 percent rise in February.

The personal savings rate, savings as a percent of after-tax income, slipped to 0.2 percent in March from 0.4 percent in February.

Link: April Job Cuts in U.S. Jump 27% From Year Ago, Challenger Says | Bloomberg.com

Job cuts announced by U.S. employers increased 27 percent in April from a year earlier, reflecting the crisis in financial markets, according to a report by a private placement firm.

Firing announcements rose to 90,015 last month, the most since September 2006, from 70,672 in April 2007, Chicago-based Challenger, Gray & Christmas Inc. said in a statement today.

Companies are trying to cut costs as energy and commodity prices rise and demand wanes. The Labor Department tomorrow may report that the U.S. lost jobs for the fourth straight month in April, the longest string of declines in five years.

``Employers will definitely be slow to hire in the coming months as the economy remains unbalanced,'' John A. Challenger, chief executive officer of the placement company, said in a statement.

So far this year, companies have announced 290,671 cuts, up 9 percent from the first four months of 2007.

The number of planned job cuts surged 68 percent last month from 53,579 in March, the report said. The figures aren't adjusted for seasonal effects, so economists prefer to focus on year-over-year changes instead of monthly figures.

Link: Gulf States May End Dollar Pegs, Kuwait Minister Says | Bloomberg.com

Gulf states are considering dropping their pegs to the dollar after the U.S. currency's decline stoked inflation across the region, Kuwaiti Finance Minister Mustafa al- Shimali said.

``Yes, there are some'' Gulf Cooperation Council states considering dropping their pegs to the dollar, which has fallen 13 percent against the euro in the last 12 months, al-Shimali said in an interview in Kuwait late yesterday without naming the countries. ``Some countries will do what we are doing.''

Al-Shimali's comments may restoke speculation of a change in Middle East currency systems that eased after the United Arab Emirates and Qatar last month ruled out any revaluation or dropping the dollar peg in the short term. The issue will remain a key issue as long as inflation remains high.

``Inflation is rising in the Gulf to a great extent because of loose monetary policy,'' said Marios Maratheftis, head of research for Standard Chartered Plc in the Middle East in a telephone interview from Dubai. ``Tightening monetary policy can only happen if they drop their currency pegs or strengthen the currency, preferably both.''

Wednesday, April 30, 2008

Phony Baloney Update

Hillary Clinton is such a phony dweeb.

Link: Clinton Takes a Lesson in How to Pay at the Pump | Wall Street Journal

To drive home just how much she understands the impact of rising gas prices, Sen. Hillary Clinton joined a steel worker in South Bend today on his morning commute.

The only snag: She hasn’t actually pumped gas—or driven—in years.

“My situation is special because of security and the Secret Service…But I hear a lot about high gas prices,” Clinton told reporters as she stood with Jason Allen Wilfing, a 33-year-old field foreman at the Deluxe Sheet Metal plant. ...

... A motorcade of eight Chevrolet Suburban SUVS (gas mileage: about 15 miles per gallon) carrying her entourage, Secret Service agents and eight members of the traveling press corps, accompanied the truck to a local gas station.

Wilfing pumped gas as Clinton explained her plan to get tough on the oil companies and create a gas tax holiday for the summer season. “I believe so strongly that the gas companies have to be a part of the solution,” Clinton said as the price on the pump ticked past $60.

Clinton went into the store to pay for the gas and also bought a French Vanilla Cappuccino. She couldn’t quite figure out how to work the coffee dispenser but her chief of staff quickly jumped in to help.

Central Government Lies; Recession Deepens

Downeconomy


Earthside Comments: Oh, how these Bushites can distort, mislead and lie. 'No recession' in the U.S. says Bush's Commerce Department.

There are three kinds of lies Mark Twain told us: "Lies, damn lies and statistics."

We're in a recession ... and it is getting worse ... no matter how the Bush bureaucrats massage the numbers.

Take the first report here. The delusion is breathtaking; a mega-transnational corporation like General Motors can lose 3.3 BILLION dollars and the stock speculators buy more GM stock because the loss "beat expectations." Sheesh. No wonder folks are cynical about big business.

More revealing about the sad state to which Bush and the radical Republicans have dragged the economy is the re-introduction of the one-year Treasury bond to finance the record federal government deficit. Besides the lies that sunk us into Iraq, the other great shameful Bush legacy will be the borrow-and-spend ocean of debt his decisions brought upon us and our children and grandchildren.

Finally, what an indication of decline can be more revealing than that government at all levels is the employer of last resort and is hoped to be the cushion for the pain of recession. Well, we got news -- when tax revenues plummet because working folks cut back on purchases or lose their private sectors jobs (they'll keep going to China and India, you know), those government jobs will disappear, too.

It is a fine mess, Bush has got us into.

Link: GM Posts Loss of $3.3 Billion on Weak US Auto Market, Charges | Associated Press/Yahoo! Finance

General Motors Corp. struggled to a $3.3 billion first-quarter loss, due in part to a weak U.S. market, a strike at a major parts supplier and plummeting sales of sport utility vehicles and pickups.

The nation's biggest automaker also cut its industrywide U.S. sales outlook for the year. The company disclosed earlier this week it was cutting production of some of its slow-selling trucks and SUVs.

But its earnings excluding one-time items beat Wall Street expectations, and its shares rose more than 9 percent in morning trading.

Link: Administration Brings Back One-Year Treasury Security | Associated Press/Yahoo! Finance

The Bush administration, moving to cope with soaring budget deficits, says it is bringing back the one-year Treasury bill that it stopped issuing seven years ago when the budget was in surplus.

The administration said Wednesday it would begin selling the one-year bill, also referred to as a 52-week bill, at an initial auction in June. New one-year securities will be auctioned every four weeks.

The government is looking for various ways to borrow the billions of dollars in extra cash it will need to cover a budget deficit that is expected to jump to an all-time high this year, surpassing the old mark of $413 billion set in 2004.

A big part of the increased borrowing reflects the need to pay for economic-stimulus rebates to 130 million households. The government began disbursing the payments on Monday in an effort to give the economy a jump start.

The government stopped issuing the one-year securities in February 2001, a year when the government recorded a surplus of $127 billion. That was the fourth consecutive surplus but was also the last time the government's books were in the black. The budget was pushed back into the red by a recession, increased spending to fight wars in Afghanistan and Iraq and, Democrats contend, by President Bush's first-term tax cuts.

Link: Hiring Leaps in Public Sector | USATODAY.com

Federal, state and local governments are hiring new workers at the fastest pace in six years, helping offset job losses in the private sector.

Governments added 76,800 jobs in the first three months of 2008, the Bureau of Labor Statistics reports.

That's the biggest jump in first-quarter hiring since a boom in 2002 that followed the 9/11 terrorist attacks. By contrast, private companies collectively shed 286,000 workers in the first three months of 2008. That job loss has led many economists to declare the country is in a recession.

Job numbers for April, out Friday, will show if the trend is continuing. Some economists say a government hiring binge could soften a recession in the short term.

"Government jobs are an important cushion for the economy when the private sector falters," says North Carolina State University economist Michael Walden.

But the job expansion could later cause financial problems for governments that are spending too much.

"More hiring has nothing to do with good government or economic policy," says economist Kenneth Brown, research director at the Rio Grande Foundation in Albuquerque. "It has everything to do with government being slow to react to economic change."

Tuesday, April 29, 2008

It's a Hark-Knock Life?

Earthside Comments: Here is a good post from AmericaBlog.com.

Link: Poor Hillary. Life Has Been So Tough for Her. | Joe Sudbay/AmericaBlog.com

Think about your daily existence and compare it to Hillary's "tough" life.

When was the last time Hillary Clinton:

Went to the grocery store?

Pumped gas?

Had to argue with her health insurance company about a bill?

Had to wait for the cable guy?

Had a spontaneous, unscripted moment?

The woman has lived in a protective bubble for over 16 years. She and her husband have hauled in over $100 million over the past seven years. Everyone around her is either paid to be around her -- or pays to be around her. And, she has paid Mark Penn a lot of money to tell her about the lives of real people, gleaned from focus groups and polls. That's her reality and she's not exactly roughing it.

And, yes, I know all candidates live in a bubble and are detached from reality. So, if voters think for a second that Hillary has any clue about their lives, they are delusional. A lot of people would trade their truly tough lives for her rarefied life of privilege. It's comical that she can call anyone an "elitist."

She wants you to know she's no pansy.

Military-Iraq Bankrupting America

Earthside Comments: When it comes to funding the GOPentagon and the occupation of Iraq -- there is no difference between the Bushites and the Dimocrats.

The report from the San Francisco Chronicle let us know that the Dims in Congress are going to buckle, cave, and surrender to Bush-Cheney on Iraq -- all the money they want and then some.

The essay by Chlamers Johnson below highlights the other BIG problem we are facing in this country -- because the military is a spending sacred cow to Republican and Dimocrat politicians, we are bankrupting the nation.

You want to know why the dollar is tanking, the tank is costing a fortune to fill, and inflation is ballooning in the grocery stores? We are fighting a $3 trillion war by borrowing money, we are shoveling money into the corrupt and wasteful Pentagon with all the dollars actually paid by income tax and then borrowing even more for the rest.

All the while Bush-Cheney cut taxes on their wealthy elite corporate cronies -- in other words, the people that got it get to keep almost all of it and YOU and your children and grandchildren get to pay the interest and principle on their profit party.

Meanwhile, the blood keeps flowing in U.S.-occupied Iraq.

What a deal, uh?

Link: Monday: 4 US Soldiers, 43 Iraqis Killed; 112 Iraqis Wounded | Antiwar.com

At least 43 Iraqis were killed and another 112 were wounded in the latest attacks, most of them in Baghdad and Sadr City. No Coalition deaths were reported. Also four U.S. servicemembers were killed. ... MORE

Link: House Democrats Work on Huge Iraq Money Bill | San Francisco Chronicle

House Democratic leaders are putting together the largest Iraq war spending bill yet, a measure that is expected to fund the war through the end of the Bush presidency and for nearly six months into the next president's term.

The bill, which could be unveiled as early as this week, signals that Democrats are resigned to the fact they can't change course in Iraq in the final months of President Bush's term. Instead, the party is pinning its hopes of ending the war on winning the White House in November.

Bay Area lawmakers, who represent perhaps the most anti-war part of the country, acknowledge the bill will anger many voters back home.

"It's going to be a tough sell to convince people in my district that funding the war for six months into the new president's term is the way to end the war," said Rep. Lynn Woolsey, D-Petaluma, a leader of the Out of Iraq Caucus who plans to oppose the funding. "It sounds like we are paying for something we don't want."

The bill is expected to provide $108 billion that the White House has requested for the wars in Iraq and Afghanistan. Lawmakers who are drafting it say it also will include a so-called bridge fund of $70 billion to give the new president several months of breathing room before having to ask Congress for more money.

The debate is shaping up as a key test for House Speaker Nancy Pelosi.

The San Francisco Democrat, who opposed the war from the start, faces fierce criticism from the anti-war left for refusing to cut off funding for the war. She's trying to hold together a caucus split between anti-war lawmakers, who'd prefer a showdown with the White House, and conservative Democrats, who believe cutting off the war funding would make the party look weak on national security and put its majority at risk.

Guns-for-butter

Pelosi is plotting a "guns-for-butter" strategy to try to force Bush to accept some new domestic spending in exchange for the money he needs to fight the war. The speaker is floating a proposal to extend unemployment benefits for 13 weeks for those whose benefits have run out. The package also could include a new GI Bill benefit to help veterans from Iraq and Afghanistan pay for college.

Bush is already vowing to veto any spending that goes over his $108 billion request. House Republicans, eager for an election-year fight with Democrats over spending, are pledging to back up his veto threat.
"We're going to insist that this is about funding the troops and nothing else," House Minority Leader John Boehner, R-Ohio, said last week.

Pelosi has been trying to ease tensions within her caucus over the bill. Anti-war lawmakers - including Woolsey, Rep. Maxine Waters of Los Angeles and Rep. Barbara Lee of Oakland - met with the speaker last week to urge her to keep the votes on war spending and domestic spending separate.

"We raised concerns," Lee said. "It just wouldn't make sense to force (members of Congress) to choose between providing food stamps for people who are hurting and need help during this terrible time and funding an occupation that people do not support."

House leaders may be able to get around the issue by splitting the votes. Last May, Democrats used a similar tactic, staging votes on two amendments - one for $22 billion in domestic spending, and another for $98 billion for the two wars - to allow anti-war lawmakers to vote for the domestic spending, but against the money for the war.

The strategy would let many Democratic lawmakers register their opposition to the war, but it wouldn't change the outcome. The Senate would eventually wrap all the spending into one package to send to the White House for Bush's signature.

Democrats may use the bill to put Republicans on the defensive by offering an amendment to boost tax incentives for renewable energy as well as language that would block the administration from implementing new rules that would cut Medicaid payments and shift those costs to the states.

House leaders also may introduce an amendment that would require Bush to use any new war money only for redeploying U.S. troops from Iraq. Bush vetoed a bill with similar language last year and Democrats lacked the votes to override it. Still, Democrats say it would remind voters that it's Bush and Republicans who are refusing to end the war.
But anti-war activists say Democrats are being disingenuous by claiming to oppose the war while also preparing to give the president even more war funding than he requested.

"They are the biggest hypocrites in the world," said Medea Benjamin, the San Francisco-based founder of the anti-war group CodePink. "They want to paint the Republicans as warmongers and they want to keep funding the war, and they think we don't see through this?"

Link: Why the US Has Really Gone Broke | Chalmers Johnson/Le Monde

The military adventurers in the Bush administration have much in common with the corporate leaders of the defunct energy company Enron. Both groups thought that they were the “smartest guys in the room” — the title of Alex Gibney’s prize-winning film on what went wrong at Enron. The neoconservatives in the White House and the Pentagon outsmarted themselves. They failed even to address the problem of how to finance their schemes of imperialist wars and global domination.

As a result, going into 2008, the United States finds itself in the anomalous position of being unable to pay for its own elevated living standards or its wasteful, overly large military establishment. Its government no longer even attempts to reduce the ruinous expenses of maintaining huge standing armies, replacing the equipment that seven years of wars have destroyed or worn out, or preparing for a war in outer space against unknown adversaries. Instead, the Bush administration puts off these costs for future generations to pay or repudiate. This fiscal irresponsibility has been disguised through many manipulative financial schemes (causing poorer countries to lend us unprecedented sums of money), but the time of reckoning is fast approaching.

There are three broad aspects to the US debt crisis. First, in the current fiscal year (2008) we are spending insane amounts of money on “defence” projects that bear no relation to the national security of the US. We are also keeping the income tax burdens on the richest segment of the population at strikingly low levels.

Second, we continue to believe that we can compensate for the accelerating erosion of our base and our loss of jobs to foreign countries through massive military expenditures — “military Keynesianism” (which I discuss in detail in my book Nemesis: The Last Days of the American Republic). By that, I mean the mistaken belief that public policies focused on frequent wars, huge expenditures on weapons and munitions, and large standing armies can indefinitely sustain a wealthy capitalist economy. The opposite is actually true.

Third, in our devotion to militarism (despite our limited resources), we are failing to invest in our social infrastructure and other requirements for the long-term health of the US. These are what economists call opportunity costs, things not done because we spent our money on something else. Our public education system has deteriorated alarmingly. We have failed to provide health care to all our citizens and neglected our responsibilities as the world’s number one polluter. Most important, we have lost our competitiveness as a manufacturer for civilian needs, an infinitely more efficient use of scarce resources than arms manufacturing.

Fiscal disaster

It is virtually impossible to overstate the profligacy of what our government spends on the military. The Department of Defense’s planned expenditures for the fiscal year 2008 are larger than all other nations’ military budgets combined. The supplementary budget to pay for the current wars in Iraq and Afghanistan, not part of the official defence budget, is itself larger than the combined military budgets of Russia and China. Defence-related spending for fiscal 2008 will exceed $1 trillion for the first time in history. The US has become the largest single seller of arms and munitions to other nations on Earth. Leaving out President Bush’s two on-going wars, defence spending has doubled since the mid-1990s. The defence budget for fiscal 2008 is the largest since the second world war.

Before we try to break down and analyse this gargantuan sum, there is one important caveat. Figures on defence spending are notoriously unreliable. The numbers released by the Congressional Reference Service and the Congressional Budget Office do not agree with each other. Robert Higgs, senior fellow for political economy at the Independent Institute, says: “A well-founded rule of thumb is to take the Pentagon’s (always well publicised) basic budget total and double it” (1). Even a cursory reading of newspaper articles about the Department of Defense will turn up major differences in statistics about its expenses. Some 30-40% of the defence budget is “black”,” meaning that these sections contain hidden expenditures for classified projects. There is no possible way to know what they include or whether their total amounts are accurate.

There are many reasons for this budgetary sleight-of-hand — including a desire for secrecy on the part of the president, the secretary of defence, and the military-industrial complex — but the chief one is that members of Congress, who profit enormously from defence jobs and pork-barrel projects in their districts, have a political interest in supporting the Department of Defense. In 1996, in an attempt to bring accounting standards within the executive branch closer to those of the civilian economy, Congress passed the Federal Financial Management Improvement Act. It required all federal agencies to hire outside auditors to review their books and release the results to the public. Neither the Department of Defense, nor the Department of Homeland Security, has ever complied. Congress has complained, but not penalised either department for ignoring the law. All numbers released by the Pentagon should be regarded as suspect.

In discussing the fiscal 2008 defence budget, as released on 7 February 2007, I have been guided by two experienced and reliable analysts: William D Hartung of the New America Foundation’s Arms and Security Initiative (2) and Fred Kaplan, defence correspondent for Slate.org (3). They agree that the Department of Defense requested $481.4bn for salaries, operations (except in Iraq and Afghanistan), and equipment. They also agree on a figure of $141.7bn for the “supplemental” budget to fight the global war on terrorism — that is, the two on-going wars that the general public may think are actually covered by the basic Pentagon budget. The Department of Defense also asked for an extra $93.4bn to pay for hitherto unmentioned war costs in the remainder of 2007 and, most creatively, an additional “allowance” (a new term in defence budget documents) of $50bn to be charged to fiscal year 2009. This makes a total spending request by the Department of Defense of $766.5bn.

But there is much more. In an attempt to disguise the true size of the US military empire, the government has long hidden major military-related expenditures in departments other than Defense. For example, $23.4bn for the Department of Energy goes towards developing and maintaining nuclear warheads; and $25.3bn in the Department of State budget is spent on foreign military assistance (primarily for Israel, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, the United Arab Republic, Egypt and Pakistan). Another $1.03bn outside the official Department of Defense budget is now needed for recruitment and re-enlistment incentives for the overstretched US military, up from a mere $174m in 2003, when the war in Iraq began. The Department of Veterans Affairs currently gets at least $75.7bn, 50% of it for the long-term care of the most seriously injured among the 28,870 soldiers so far wounded in Iraq and 1,708 in Afghanistan. The amount is universally derided as inadequate. Another $46.4bn goes to the Department of Homeland Security.

Missing from this compilation is $1.9bn to the Department of Justice for the paramilitary activities of the FBI; $38.5bn to the Department of the Treasury for the Military Retirement Fund; $7.6bn for the military-related activities of the National Aeronautics and Space Administration; and well over $200bn in interest for past debt-financed defence outlays. This brings US spending for its military establishment during the current fiscal year, conservatively calculated, to at least $1.1 trillion.

Military Keynesianism

Such expenditures are not only morally obscene, they are fiscally unsustainable. Many neo-conservatives and poorly informed patriotic Americans believe that, even though our defence budget is huge, we can afford it because we are the richest country on Earth. That statement is no longer true. The world’s richest political entity, according to the CIA’s World Factbook, is the European Union. The EU’s 2006 GDP was estimated to be slightly larger than that of the US. Moreover, China’s 2006 GDP was only slightly smaller than that of the US, and Japan was the world’s fourth richest nation.

A more telling comparison that reveals just how much worse we’re doing can be found among the current accounts of various nations. The current account measures the net trade surplus or deficit of a country plus cross-border payments of interest, royalties, dividends, capital gains, foreign aid, and other income. In order for Japan to manufacture anything, it must import all required raw materials. Even after this incredible expense is met, it still has an $88bn per year trade surplus with the US and enjoys the world’s second highest current account balance (China is number one). The US is number 163 — last on the list, worse than countries such as Australia and the UK that also have large trade deficits. Its 2006 current account deficit was $811.5bn; second worst was Spain at $106.4bn. This is unsustainable.

It’s not just that our tastes for foreign goods, including imported oil, vastly exceed our ability to pay for them. We are financing them through massive borrowing. On 7 November 2007, the US Treasury announced that the national debt had breached _$9 trillion for the first time. This was just five weeks after Congress raised the “debt ceiling” to $9.815 trillion. If you begin in 1789, at the moment the constitution became the supreme law of the land, the debt accumulated by the federal government did not top $1 trillion until 1981. When George Bush became president in January 2001, it stood at approximately $5.7 trillion. Since then, it has increased by 45%. This huge debt can be largely explained by our defence expenditures.


The top spenders
The world’s top 10 military spenders and the approximate amounts
each currently budgets for its military establishment are:

Rank Country Military budget
1. United States (FY 2008 budget) $623bn
2. China (2004) $65bn
3. Russia $50bn
4. France (2005) $45bn
5. United Kingdom $42.8bn
6. Japan (2007) $41.75bn
7. Germany (2003) $35.1bn
8. Italy (2003) $28.2bn
9. South Ko