Economy archives

Puncturing the barefoot fantasy

The Gaurdian has an article that starts off:

No wonder Iceland has the happiest people on earth

Highest birth rate in Europe + highest divorce rate + highest percentage of women working outside the home = the best country in the world in which to live. There has to be something wrong with this equation.

Of course. Can't have women outside of the home.

But a high birthrate doesn't necessarily have to be a bad thing. High divorce rate could be an indication of fewer unhappy marriages.

And we all know now that societies with more women participating not just in the workplace but in management thrive more than other societies.

So what's the "something wrong" here?

'That is not something to be proud of,' said Oddny, with a brisk smile, 'but the fact is that Icelanders don't stay in lousy relationships. They just leave.' And the reason they can do so is that society, starting with the parents and grandparents, does not stigmatise them for making that choice. Icelanders are the least hung-up people in the world. Thus the incentive, for example, 'to stay together for the sake of the kids' does not exist. The kids will be just fine, because the family will rally round them and, likely as not, the parents will continue to have a civilised relationship, based on the usually automatic understanding that custody for the children will be shared.

Reykjavic, Iceland, May 2008: City Councillor Oddny Sturludottir tells us why Iceland is the best place in the World. Photograph: Ari Magg
The comfort of knowing that, come what may, the future for the children is safe also helps explain why Icelandic women, modern as they are (Iceland elected the world's first female president, Vigdis Finnbogadottir, a single mother, 28 years ago), persist in the ancient habit of bearing children very young. 'Not unwanted teen pregnancies, you understand,' said Oddny, 'but women of 21, 22 who willingly have children, very often while they are still at university.' At a British university a pregnant student would be an oddity; in Iceland, even at the business-oriented Reykjavik University, it is not only common to see pregnant girls in the student cafeteria, you see them breast-feeding, too. 'You extend your studies by a year, so what?' said Oddny. 'No way do you think when you have a kid at 22, "Oh my God, my life is over!" Definitely not! It is considered stupid here to wait till 38 to have a child. We think it's healthy to have lots of kids. All babies are welcome.'

All the more so because if you are in a job the state gives you nine months on fully paid child leave, to be split among the mother and the father as they so please. 'This means that employers know a man they hire is just as likely as a woman to take time off to look after a baby,' explained Svafa Grönfeldt, currently rector of Reykjavik University, previously a very high-powered executive. 'Paternity leave is the thing that made the difference for women's equality in this country.'

Hmmm.... Maybe progressive values are actually good for children?

Imagine this happening in this country.

I’m so bitter my eyes hurt - Go Barack!

This ain’t just any Bush-league recession

3 recessions under Bush presidents. (3 Republican recessions, many would say.) But this one is the worst since the post-War period [audio].

Should we really be surprised?

McArdle: Poor Will Not Eat Their Tax Rebate. Or Will, But Shouldn’t. Or Something.

There is, on the other hand, a lot of evidence of obesity among the poor; their obesity rate is estimated at 36%, and the obesity rate among poor children seems to be about twice the rate among non-poor children. The poor people are eating more calories than they need. Yet we propose to stimulate the economy by giving the poor money that can only be spent on more food.

ldkjlkdjlskdjsd lksdjflkdjlsddj. ieihaiuyhl;l tylksolkwju slkjfoiue l;sjoiue slkjfous.

There. I just added something more interesting to the overarching discussion than Mary-One-Note did.   

BTW: I'm not poor by any stretch of the imagination (unless you use the Aravosis metric) and I plan on spending 100% of my tax rebate on non-vegan, non-healthy food.

Tax Rebate

So, how are you going to spend that extra $600-$1200+? Given our vacation druthers this year,  a few Roman gelato purveyors are in for a windfall.

A Defense of Friedman Economics

In the case of the mortgage crisis, when all is said and done, we're probably talking flood, not trickle:

Local governments, which rely heavily on property taxes, will have to find ways to replace lost revenue or face having to cut services, lay off staff members or delay projects. The possibility of those losses has alarmed officials in areas already facing large numbers of foreclosures and slumping sales, products, in part, of the mortgage credit crisis that has rippled through the country. [Sunday Business.]

“Government has been the beneficiary of increasing home prices,” said Relmond Van Daniker, the executive director of the Association of Government Accountants. “And now they are on the other side of that, and they will have to reduce expenses.”

While every state and local government has its own methods for assessing home values for tax purposes — some do it annually, some every five years, and everything in between — many counties are hearing from residents that they would like their homes reassessed, or have taken steps to bring the taxes down of their own volition.

Laid-off government workers, bank tellers, etc. usually don't do alot of discretionary holiday spending. Worried-about-losing-their-jobs retail workers might not eat out at M&S. Troubled chains won't build new outlets. Laid off construction workers ...

Free Association in the Blogosphere

First I read this. Then I read this. And now I can't get this out of my mind:

Robert Reich and Supercapitalism

A dear old friend of mine interviews the former labor secretary here.

Bank Run

Crybabies! The mortgage crisis isn't that bad. Why, just think of all the great spin-off benefits an exacerbated global economic crisis provides for more of America's families!

The Blowback…

Naturally, the news had to bring in a lyin' ass Republican to counter the Edwards Tour on Poverty. This time around we have RNC Chairman Mike Duncan, your basic evil, entitled white guy speaking from Washington. The first thing he mentions is the haircut. *sigh... Then he says Edwards is out of touch with poverty in America - as statement dripping with such irony it makes my eyes hurt - and starts talking about how big Edwards house is and blaming him for the health care crisis in North Carolina because he used to sue doctors for medical mistakes.

Then, wouldn't you know, he mentions the bible. The Republicans' favorite line in the whole thing is "the poor will always be with us" and he trots it out, implying that we have no obligation to help the poor because Jesus says they can't be helped, and there's the implicit understanding amongst the Republican rich that anyone who wants a job has one, and if you were a good, "god"-fearing Xtian you wouldn't be poor anyway. I'm glad this guy isn't here in KY, because I might have to hunt him down and scream at him. Edwards even used the Gordon Gekko line in saying that the view in Washington has been "greed is good" and he resoundly rejects that. The Repubs don't have a leg to stand on here, put they keep throwing labels at Edwards that more accurately apply to themselves. When you haven't got a conscience, it's easy to lie like that, especially when you have no respect at all for your intended audience. Edwards does have the distinction of having used the "L" word in the debates for 2004. He said of Bush and Cheney "they will absolutely lie about anything." The person who will stand up and call shrub out for being the Liar that he is gets my vote, hands down.

Duncan next hammers the sore spot for this area - liquid coal plants. A lot of people in this area think liquid coal is going to save Eastern Kentucky, but they're only going to do what the coal industry has always done here - make the mine owners rich, get a bunch of miners killed, and destroy our environment. It won't do shit for poor people, even if they're directly employed by such a plant.

This area is still struggling to get plumbing and potable water to our poorest residents. (The coal industry has destroyed our ground water. You should see the sludge that comes out of the faucets in some places - or wells, if they don't have faucets.) The average income in the area Edwards visited today is $12,000 dollars a year. The drop-out rate is the highest in the state and therefore in the country. 1 in 4 people in Kentucky is disabled, and a large part of the population is simply unemployable, even for the most menial jobs because they are illiterate. Yet Floyd county has more millionaires per square mile than any other county in the country, because there are a few VERY wealthy mine owners who maintain residences here. Nowhere in America is the "2 Americas" analogy more accurate.

It's not a visible difference, though. That table full of guys in trucker hats and overalls at the local Dennys might have a combined worth that would make Donald Trump drool. Rich people here don't necessarily look rich, and their houses are hidden up in the hills behind gates and stone walls. The money isn't visible here.

Now here's where I get in trouble with my middle-class family...

The poverty in Eastern Kentucky is in. your. face. I can't begin to describe to you the conditions some people live in here. My best analogy is that Eastern KY is like an Indian reservation, without the sovereignty or government aid. We're isolated geographically and we have no infrastructure, so nobody gives a shit about us. They're trying to create tourism in this area with native arts and crafts, golf ranges, skate parks, ATV trails, horse trails and our new elk population, but tourists need things like hotels and restaurants. Except for fast food and an occasional Chinese smorgasboard or Mexican place, there's no such thing. The best meal in the area is supposedly the catfish at the Lodge at Jenny Wiley State Park. There is some higher culture in Kentucky, including fine restaurants, hotels and art galleries, but it's in Lexington and Louisville on the other side of the state.

Let me tell you about the hotels. There's a former Holiday Inn that one of my many, many cousins redecorated with a gun during a party. He was away for a few years. There's a motel that used to be the home of a satanic vampire cult that made the national news when it's "leader" - who was something like 17, and whose mom was a part of it and having sex with his friends - murdered his girlfriend's parents in Florida. There's one other place that Hillary Clinton got to stay in, which I understand is passable, but not great. So if you're coming to visit, bring a tent. We've got an abundance of open mountain land, as long as you don't mind copperheads, rattlesnakes (like the huge one my dad killed in the front yard last week) mountain lions (like the one my cousins down in hollow saw up on our side of the mountain the other night, so we can't let the dogs out after dark) bears, deer, tics and the aforementioned giant elk. No bees, though, so it's getting hard to grow anything. Don't get me started on the foreign insects and flora that have been brought into the area which all caused greater problems than they might have solved.

A friends husband once said that I lived in the middle of nowhere, but my reply was that I have to drive 3 hours to get to the middle of nowhere. That's why my family had to camp at the hospital in Lexington when my mom had two brain surgeries and couldn't be left alone. There are fabulous hospitals even in this area, though, because everyone is sick. Diabetes, heart disease and lung ailments (from exposure to coal) abound. Then there are the accidents, like the toddler who was burned this week when he dropped his sippy cup on some black powder some boys had been playing with, and the car that went driving down the state highway in front of my place shooting randomly the other night. Did I mention that we are the reason oxycontin is called "hillbilly heroin?" It's the number one form of recreation for our young people. We have the same pervasive problems with domestic violence and rape that are found on reservations, too.

Most people are older, poorly educated even if they finished school, and they're deeply indoctrinated in the local religion which is reactionary far beyond anything justified by the actual text of the bible, but they don't know that because the preachers they listen to are illiterate, too. Not just unschooled in theology, I mean can't read a word at all.

The middle class here is tiny, and even a county employee can be the biggest fish in this pond. The bigger fish get angry that this area is portrayed as impoverished. These are proud people, but frankly, they're in denial. You should see what passes for a newspaper here. It's more like a church newsletter, with columns by paperboys and adults who can't write, or even conjugate a verb. They won't touch anything controversial and there's no "investigative reporting" though we sorely need some for reasons I'll get into later on. I don't usually read it because it makes me want to hurt somebody.

Finally, the government recently decided not to put a bio-weapons lab in London, KY because they wouldn't be able to get anyone to work in it that would actually consider living here. The kicker for me is that people here were upset that they weren't going to get a lab full of anthrax and ebola in their back yards because it would have created jobs. Get that? They'd rather have a job doing scutt work around bio-weapons than live.

Is there really anything left to say after that? More power to you, John. Even if you don't succeed, at least you've got people thinking about the poor.