Wednesday, November 6, 2013

Sustainable Growth = CANCER

As the old saying goes, growth for the sake of growth is the ideology of the cancer cell.  And that saying has never been more true than it is today.

In the long run there is really nothing "sustainable" about growth, either in population or the economy, so let's stop pretending that there is.  Growth by definition requires increasing consumption of resources, and infinite growth on a finite world is literally impossible since it completely defies the laws of nature.  What we have now, and have had since sometime between 1973 and 2000, is better known as uneconomic growth, since it essentially does more harm than good to keep on growing and growing.  Not only has further growth failed to benefit the vast majority of the American people (virtually all of the gains have gone to the top 1%), but we also are starting to run up against the limits of growth.  One recent indicator is the latest UN report on climate change, which shows that greenhouse gases in the atmosphere have hit a new record high as we continue to cook the planet with reckless abandon.  In fact, continuing "business as usual" would almost certainly mean in increase of nearly 5 degrees Celsius (i.e. likely to be catastrophic) relative to pre-industrial levels by the end of the century, and even if we started reducing CO2 concentrations now, it may be impossible to avoid a significant increase in global temperature since CO2 tends to linger for a very long time.  And that's to say nothing of all the other ecological disasters in the making (deforestation, desertification, pollution, mass extinctions, etc.) that all have essentially the same root cause--our insatiable addiction to growth for the sake of growth.

Scientists are telling us in no uncertain terms that we need to change our ways for good, and quickly.  In order to make such changes, we absolutely must end our addiction to growth, which is the cause of our addiction to fossil fuels and other environmentally unsound practices.  The urgency is far greater than most people realize, and is greater than it was even just a few years ago.  We absolutely must transition toward a steady-state economy that is no longer dependent on growth, and we must also put the brakes on population growth by having fewer kids.  And we must do it now, or else we will get both hell AND high water in the not-too-distant future.  To help make this transition and avert catastrophe, here is a list of things the TSAP recommends:

  1. Create a carbon tax on all fossil fuels in which all revenues are returned directly to the people in equal amounts, a la Carbonomics.  We absolutely must put a price on carbon.  Start it at $10/ton for the first year, and sharply increase it every year thereafter, until the CO2 levels are below 350 ppm.
  2. Implement aggressive carbon sequestration, including biochar (terra preta), to put excess carbon back in the ground where it belongs.
  3. Reduce the other greenhouse gases as well, especially methane via landfill gas capture and farm power.
  4. Set a goal to phase out all fossil fuels completely by 2050, if not by 2030.
  5. Go full steam ahead with renewable energy technologies (solar, wind, tidal, geothermal, biomass, etc.), increase funding for research, and encourage their widespread adoption via feed-in tariffs.
  6. Increase the use of nuclear power, especially the thorium fuel cycle which is much safer and cheaper in the long run than uranium. 
  7. Increase public transportation dramatically, and eventually make all vehicles electric.  In the meantime, improve the way fuel economy standards are done, via the classic "feebate" mechanism.
  8. Levy ecological taxes (similar to vice taxes) on all resource depletion and pollution, and/or alternatively use a cap-auction-trade system for basic resources.
  9. Ban fracking immediately.
  10. Craft a better version of the Kyoto treaty.
  11. Move toward fair trade instead of "free trade", which really isn't "free" at all.
  12. Set not just a minimum wage (at least $10/hour), but also a maximum wage, especially for corporate executives.  Alternatively, raise the top marginal tax rate to at least 50% on each dollar above the first million, with no loopholes this time.  We should focus on sharing the pie rather than making it bigger.
  13. Shorten the standard workweek to 30 hours instead of 40.  
  14. Stop obsessing over GDP as a measure of economic well-being.  Instead, separate it into a cost account and a benefit account, or use alternative measures such as Genuine Progress Indicator.
  15. Stabilize (and eventually shrink) the population by reducing immigration to match emigration, and encouraging people to voluntarily have fewer kids.  The goal should be a TFR of 1.5-1.9, achieved without coercion.
  16. Implement all of the other policies on the TSAP platform, including abolishing the Feral Reserve and creating a public national bank.
  17. Let the planetary healing begin!
So the next time someone talks about the supposed need to increase growth, be sure to remind them that bigger is NOT better.  Better is better.  And in this age of uneconomic growth, further growth will only make us poorer rather than richer.

UPDATE:  The super-typhoon that recently ravaged the Philippines and killed at least 10,000 people was basically the worst tropical cyclone ever recorded in the history of the world.  And these kinds of storms will only increase in the future if we continue on the destructive path we are currently on.  We have all been warned.

Wednesday, October 30, 2013

Obamacare Has Republican DNA

With all the latest fuss about the Affordable Care Act, better known as Obamacare, one key fact seems to fly over everyone's heads.  Despite all the Republican attempts to dismantle it, even going so far as to hold the government hostage to do so, many of its core provisions were originally Republican ideas, no matter how much they like to deny it today.  Even some of those who are against it today supported something very similar in the 1990s.  In fact, one can even say that the healthcare law was largely written by the insurance industry for the GOP, since it is virtually a clone of the plan that the industry had originally wanted all along.  Here's a brief history lesson for those who still don't know.

While many of the more progressive Democrats (as far back as Truman and FDR and even Obama himself as recently as 2008) have long wanted some type of universal single-payer system, most Republicans have traditionally balked at the idea, and have proposed their own alternatives that would leave the for-profit private health insurance system intact.  The first alternative came from Nixon, the same guy who gave us the plague known as HMOs.  Nixon's idea was basically equivalent to Obamacare's employer mandate as well as the Medicaid expansion.  (Of course, despite being Republican, Nixon was actually to the left of both Clinton and Obama.)  The next Republican idea was proposed by the Heritage Foundation in 1989, which was the individual mandate that many despise so much, also combined with a Medicaid expansion.  The insurance industry loved it so much (for obvious reasons) that several Republicans from Gingrich to Romney have at attempted to implement some form of it in the 1990s and early 2000s, often including subsidies or tax credits.  When Romney implemented Romneycare in Massachusetts in 2000, by that point most of the plan was largely identical to what eventually became Obamacare.  When Congress finally put it together, the version that passed in 2010 was essentially inspired by Romney who was inspired by Gingrich who was inspired by the Heritage Foundation and who were all inspired to some degree by Nixon.  And that, my friends, is the long and checkered history of the most controversial aspects of Obamacare, which actually turns out to be somewhat of a misnomer.

The TSAP currently supports a truly universal, single-payer system instead of Obamacare or the status quo.  Clearly, Obama never should have trusted the insurance industry in the first place, and should have stuck with his original plan rather than approve the Faustian bargain that would become his namesake law.  In the meantime, however, we believe that Obamacare could become a steppingstone to single-payer if it is given a chance to work, and the Republicans should give up trying to thwart it.  Of course, we still do not support the idea of the individual mandate on principle, and we believe that it should be delayed by a year if not longer, or better yet jettisoned entirely as it is really not necessary.  As we have noted before, the problem of adverse selection is not nearly as large as the mandate proponents believe, and can be greatly ameliorated by simply providing carrots rather than sticks.  In fact there are already such incentives built into the Affordable Care Act, namely the tax credits and subsidies that make health insurance more affordable.   The relatively narrow "open season" for enrollment would also reduce the problem as well.

Additionally, thanks to the law of unintended consequences, the employer mandate should also be further delayed, truncated, or jettisoned since it appears to have led to part-time employees having their hours drastically cut so their employers don't have to offer benefits, and this is a huge deadweight loss.  But everything else in the Act should remain as is until Congress finally gets the intestinal fortitude to implement a single-payer system despite what their corporate masters want.  Anything less would be uncivilized.

Thursday, October 17, 2013

Default Averted, For Now

Finally, after 16 days of being shut down, the federal government has officially reopened on October 17.   At the 11th hour, Congress finally passed a bipartisan deal to fund the government through January 15, 2014 and suspend the debt ceiling enough to get us through February 7.   Thus, the risk of default is nil for the next few months, until the next inevitable battle on the horizon of course.   The President stood his ground, and no significant changes were made to Obamacare as Bonehead and most Republicans finally backed down for now.  Our economy, and indeed the world's economy, has been saved from the brink of catastrophe.  So, cue the music, Maestro:

HALLELUJAH!  HALLELUJAH!  HALLELUJAH, HALL.......err, wait a minute.  Seriously?  There is really nothing to be rejoicing about, since true progressives gained absolutely nothing from the deal, the sequester cuts are still in place, and the crazy fanatics who held our government hostage and nearly drove us over the debt cliff get to walk away unpunished, salivating like Pavlov's dog at the next chance to do it all over again.  The antics of the past few weeks have already done significant damage to our economy, and made America look like a dysfunctional laughingstock around the world.  We must not tolerate this kind of outrageous and unacceptable behavior from any of our elected representatives, ever.  Period.  So, one more time, we will say it again to them loud and clear:

"YOU'RE FIRED!!!"

Now pack your bags and get the hell out before we primary each and every one of you.  We the People have spoken.  Don't let the door hit you on the way out.