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Ponzi Capitalism and the Deepening Moral Crisis

The Roller Coaster: The Communist Party in the 1940s

Rebuilding the Labor Movement in the 21st Century, an Interview with Scott Marshall

Police Escalate Attacks on First Amendment Rights

Public Option: Worth the Fight

Our Socialist Inheritance and Future

Past, Present and Future: The Politics of Reform in the Era of Obama

Needed: Constitutional Amendment for the Right to a Earn a Living Wage

Why Should Grassroots Liberals Consider Marxism?

Is That Specter Really Collapsing?

Carlo Tresca: The Dilemma of an Anti-Communist Radical

The Brief, Revolutionary Life of Joe Hill

Movie Review: Giải phóng Sài Gòn

Review: Logicomix: An Epic Search for Truth

Poetry, November 2009

/Archives - Dates and Topics /2009 online /November 1-30, 2009 Print | Send to friend

Lonesome Hobo Economics: Some Folks are Starting to Panic



click here for related stories: economy
11-05-09, 9:12 am


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Political Affairs Podcast #111 – Labor on the march!

On this episode we'll play our interview with Scott Marshall, chair of the Communist Party's labor commission, about the recent AFL-CIO national convention and labor's role in the demonstrations at the G-20 events in Pittsburgh.


Download the mp3 version of episode #110 here





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...Kind ladies and kind gentlemen...

But I did not trust my brother,
I carried him to blame,
Which led me to my fatal doom,
To wander off in shame.

Bob Dylan, JWH, Lonesome Hobo 1967


The fight for health care has been harder than anticipated by many. Even though it is moving toward an historic moment, many are frustrated with the pace of change. Worse, the rising unemployment is getting very scary. In one sense this has worked in favor of health care reform as thousands of workers agonize over health coverage being lost when jobs are lost. Majorities for a public option reflect this. But Democratic defeats in Virginia and New Jersey reveal the destruction that the extended downturn is wreaking on workers employment, and income, and stability.

Part of this was reflected in the very low turnout among those with incomes under $50,000, and very strong turnout among incomes up to $100,000 and even stronger for the over $100,000 crowd. For the Obama administration these elections are a sharp wake-up call they probably knew was coming. Creigh Deeds in Virginia was a weak candidate in many respects. But the problem started earlier when the Virginia Democratic Party put all its marbles on Terry McAuliffe, another Clinton-era Democrat that never quite made the conversion from back-room fund-raiser to credible candidate.

The truth is that the Democratic Party needs candidates that are closer to the ground with the people, and who are prepared to be bold addressing unemployment and jobs. Independents broke toward the Republicans in both New Jersey and Virginia, mostly in a protest frustration vote. But the ultra right formations are also gaining strength. We may all take some comfort that the Democrat in Plattsburgh, NY defeated Doug Hoffman, a man who seemed barely conscious in his media interviews. But this travesty, this caricature of a potential public figure, endorsed by Sarah Palin and Tim Pawlenty, got 46 percent of the vote!! The moderate Republican had to resign in order to prevent a farce from being elected to Congress.

Recall that when the official unemployment rate passes 10 percent, which it will likely do this month, the real rate will not include another 11 percent "discouraged workers." At least 2.5 percent of the current workforce is classified as "structurally unemployed" -- their jobs are never coming back. It will be very wrong to underestimate the kinds of political instability that will, in fact must, arise when 20 percent or more of a people are idle.

Even optimistic forecasts will leave over nine percent (double that for discouraged) unemployed in the next Presidential cycle, and not down to seven percent until the end of Obama's second (if he could win it) term. Thats way too high for panic not to spread, if actions are not taken. A second stimulus yes, but including an government employer of last resort option. There's work to be done. Put a cap on unemployment. And everybody else thats able bodied gets to work. Thats the Hobo's view.


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