Trickle-up Economics By Paul Craig Roberts

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Dandelion Salad

By Paul Craig Roberts
December 04, 2009 “Information Clearing House

Goldman Sachs senior executives are arming themselves with New York gun permits, according to Alice Schroeder on  The banksters “are now equipped to defend themselves if there is a populist uprising against the bank.”

One can understand why the banksters are worried. The company, now known as Gold Sacks, has a large responsibility for the financial crisis and the fraudulent “securities” that wrecked the world economy and Americans’ pensions. A former Gold Sachs CEO had control of the US Treasury during the Bush regime from which he diverted $750 billion to bail out the banks, thus supplying them with free capital. Gold Sachs made $27,000 million during the first three quarters of 2009 and is paying out massive bonuses, leaving the busted taxpayers with the debt and interest charges.

Little wonder the US can’t afford health care for the uninsured and unemployed. It is far more important to finance multi-million dollar bonuses for investment bankers. I mean, what would we do without capitalism?

Of course, it is not really capitalism. It is an oligarchy or a financial plutocracy.

In a failed state, the government’s priorities are totally separate from those of the people. The US can’t afford health care or a bailout for jobless homeowners, but it can afford a pointless war and multi-million dollar bonuses for banksters who wrecked the economy.

Millions of laid-off workers lost their health insurance subsidies on December 1, the day President Obama announced a $30 billion “surge” in Afghanistan.

The expensive “surge” came 24 hours after the Detroit Free Press published a 127-page supplement of home foreclosures in its metro area. In Michigan 48% of mortgages are on properties that are worth less than the loan, according to a report from First American CoreLogic.

As bad as it is in Michigan, the state ranks seventh in foreclosures, so six states are in even more dire straits.

Why does President Obama think the US can afford a war in Afghanistan when the US economy is falling apart? Massive joblessness. Massive homelessness. Millions of Americans without medical care.

The additional $30 billion for the war comes on top of the $65 billion already appropriated for the year. These appropriations are always fattened with supplementary appropriations. The true cost is well in excess of $100,000,000,000.

Whose going to pay for it? Democratic Representative David Obey, chairman of the House Appropriations Committee proposes to raise income taxes on everyone earning more than $30,000.

This is called “trickle-up” economics. You tax the little guy and give the money to the armaments companies.

There was a time when Democratic presidents represented the little man, and Republicans represented business. Today both parties represent the moneyed interests. On December 3 at the jobs summit with business leaders, Obama said , “We don’t have enough public dollars to fill the hole of private dollars that was created as a consequence of the crisis.”

In other words, all the public’s money has been spent on the banks and the wars.

Despite Democratic majorities in the House and Senate and the ease with which Obama won the presidential election over McCain/Palin, the Democratic Party has totally collapsed. The Democrats have abandoned every constituency. Democrats have discarded the American people. Democrats, in pursuit of campaign contributions, represent the moneyed interests on Wall Street, the munitions companies, the insurance companies, the agri-businesses that have destroyed independent farmers, despoilers of the environment, unaccountable police, and the builders of detention centers. The exception is Rep. Dennis Kucinich.

The Democrats have become brownshirt Republicans.

The American people, except for the one percent of super-rich, have been abandoned.

Obama had a different message during the presidential campaign. On May 4, 2008, he went to Elkhart, Indiana, to sympathize with the unemployed. On February 9, 2009, just after his inauguration, he returned to Elkhart to say:

“You know, we tend to take the measure of the economic crisis we face in numbers and statistics. But when we say we’ve lost 3.6 million jobs since this recession began – nearly 600,000 in the past month alone; when we say that this area has lost jobs faster than anywhere else in America, with an unemployment rate over 15 percent; when we talk about layoffs at companies like Monaco Coach, Keystone RV, and Pilgrim International – companies that have sustained this community for years – we’re talking about Ed Neufeldt and people like him all across this country.

“We’re talking about folks who’ve lost their livelihood and don’t know what will take its place. Parents who’ve lost their health care and lie awake nights praying the kids don’t get sick. Families who’ve lost the home that was their corner of the American dream. Young people who put that college acceptance letter back in the envelope because they just can’t afford it.

“That’s what those numbers and statistics mean. That is the true measure of this economic crisis. Those are the stories I heard when I came here to Elkhart six months ago and that I have carried with me every day since. I promised you back then that if were elected President, I would do everything I could to help this community recover. And that’s why I’ve come back today – to tell you how I intend to keep that promise.”

What’s the story in Elkhart 9 months after President Obama reaffirms his promise? “Long-term unemployed face dwindling options.”

Lawrie Covey, 58, has been out of work for two years. “I can’t even get a job cleaning rooms at a local motel.” Her son, who was night shift foreman for a local manufacturer and who lost his job after eight years, was splitting the rent. Winter is upon them, and the heating bill is rising. Their transportation is 20 years old and needs a new radiator. Both her and her son’s unemployment benefits have run out. Lawrie Covey has fallen back on her experience growing up on a farm. She is raising chickens and picking wild mushrooms and has a garden. If she makes it through the winter, she hopes to get a couple of baby pigs to raise to see them through the next year.

Lawrie Covey, to whom President Obama made a promise could just as well be an Afghan peasant. She doesn’t count any more than the thousands of Afghans who have been murdered in their sleep by US air strikes on “terrorists.”

She voted for a president who spent all the money on wars based in lies and deceptions and on Gold Sacks, the richest institution in the world.

The maniacal left-wing hates Ronald Reagan because “he cut taxes for the rich,” but Obama is loading up the poor with enormous debts that imply hyperinflation in order to make Gold Sacks too heavy to lift and in order to reward the munitions industry for its service to world peace and American hegemony.


Gerald Celente: Bernanke is destroying the US economy + Ron Paul

Eliot Spitzer: Geithner, Bernanke “Complicit” in Financial Crisis and Should Go

The Audacity of Ethnic Cleansing by Mike Whitney

Kucinich, 18 Members of Congress Urge Obama to Lead Global Effort to Combat Climate Change + The War is a Threat to Our National Security

The Afghan Quagmire by Ralph Nader

The Economy Sucks and or Collapse 2

Afghanistan on Dandelion Salad

6 thoughts on “Trickle-up Economics By Paul Craig Roberts

  1. Pingback: Larry Summers is Steering the Economy Towards “Structural Adjustment” By Mike Whitney « Dandelion Salad

  2. Pingback: Professor Michael Hudson on the Global Financial Crisis « Dandelion Salad

  3. Well-said, WalidMaaytah!


    I too wish he showed more of a backbone in leading ALL of government up a higher road. Standing up to the military and the “perpetual war is good business” war profiteers, like JFK did.

    That he wasn’t so quick let the good-old-boy network of bankers and wealthy elitists stay so close in his final decisions around war, health care, economic stimulus.

    That he stood in principle for what is right even if he knew he would not always succeed, instead of being so quick to ‘get along by going along.’ You are SO right-on!

    I think there is a ‘permanent government’ that makes his range of options much narrower than we would think it is.

    But that doesn’t prevent us from moving into 2010 demanding that the hopes and dreams that were so poignant on Innauguration Day be fulfilled!

    Demanding it!

    Let’s insist Obama do what all great leaders do: reflect the best in those they lead, like a lightning rod for real change.

    That he brings out the best in all of us and we support him to bring out the best in himself.

    That he earn that Nobel Prize not for great speech-making and having the best of intentions, but for real action. Real change. A real legacy. .

    Not because he is so strong or so smart or so moral that he won’t settle for anything less, but because WE who elected him are the strong ones, the smart ones, and it is OUR moral compass and our compassion that won’t allow US, as a people, to settle for anything less.

  4. Well-said Tony, especially the “Stop looking to leaders. We need to be the change we want to see in the world”.

    True, Obama is only the President, and he’s operating in an outdated, outmoded system that isn’t more than an oligarchy or a financial plutocracy – but he doesn’t have to succumb to it so quickly like a nice kid who tries to fit in, in his new school, with the popular thugs who run the school. He could’ve shown the people who believed in him and gave him a landslide victory that he’s outpowered and outgunned in this fight. He owes the people, who saw in him a dream come true, the truth. He should speak to them and that’s all he needs to do to have the American people understand and still back him up.

    He was voted in on a dignified, moral platform that addressed people’s issues and promised them an honest answer, if not a real change of the status quo. His slogan of “a change we can believe in” turned out to be a hope that wasn’t or couldn’t be fulfilled and a faint, sad dream that never materialized.

    I like the guy too, and I believe too that he has a good heart, but I sadly came to discover that he has a weak backbone that didn’t show when he was campaigning. He gave the American people, who saw a hero in him, some major rude awakening, when they discovered that the nice guy they picked for their President gave great speeches, has good intentions, but he failed them at what they wanted most: a morally strong President who walked the talk and who stood his grounds with the greedy, hungry and heartless vultures of America, Republican and Democrats alike.

    What would’ve he lost had he kept his words and promises and shown, not only America, but the whole world, who were also dancing in the streets everywhere when he was elected, that America can still produce a decent, honest and a strong leader, who has morals, values and would do the right thing, for a change, whether things worked out, in terms of passing needed legislations, or not. Americans and the world would’ve loved to have seen such man emerge out of our heartless, capitalist jungle that only caters to special interests groups, whose only care is to grab the bigger piece of the financial pie and damn be the poor, uninsured and weak.

    What would’ve he really lost had he acted like the commander in-chief, he is supposed to be, and told his generals to learn some manners when they talk and not try to dictate policy to their supreme commander, who is the real and final decision maker when it comes to making decisions about war and peace, and that we are still a civilian-run country and not a military dictatorship where generals make decisions for the nation. That was weak of the President, who is entrusted with the lives of our young men and women who were sent across the globe to fight senseless, baseless wars that were based on lies and deception. Had he done that, the world over would’ve stood up and saluted his strength of conviction and character in the face of the corrupt, greedy and the phony, not to mention the many lives, from both sides, he would’ve saved.

    America has always been known for dreaming big, and with Obama America dreamt big, dreamt of a knight in a shining armour, but was let down yet again when it woke and discovered that dreams don’t come true any more in America.

  5. This is a great article, thank you! You articulate what many of us share!

    But I want to just gently interject one point: President Obama is not a King. He isn’t an Emperor, he doesn’t have a magic wand, he didn’t pull a sword out of a stone.

    Personally, I still like the guy. I think he is a sincere, compassionate, and decent man. I don’t think he’s sinister, evil, or that he makes it up as he goes along and then chuckles like the Joker on Air Force One heading back home like the bad guy in a Bond movie.

    He’s only the President. He doesn’t have the power you think he does.

    Personally, i think the plutocracy preferred their old pal Hillary.

    Obama doesnt just decree who his Teasury Sec is, who runs the Fed, who decides on continued war.
    He can’t just make the Congress do what he said he’d do in a speech. Can he MAKE max Baucus listen on single payer when Baucus gets $3 mil from the insurance guys?

    Those speeches are genuine. He awakens people to the POTENTIAL for change.

    As Ralph N and Cindy S have said over and over: we need to INSIST.

    MAKE THEM do it! Or kick them out!

    How many of us live in districts where the incumbents are a shoo-in and a third-party cant even get on the ballot? What did you do about that last week? Last month? What did I do?

    When MLK was making his impassioned speeches decades ago, throngs of thousands of African Americans were in the streets, the voting booths.

    Where are the throngs marching on Washington today? Blocking traffic into Wall St? Marching on the military bases?

    Remember LBJ and the Civil Rights Act of 1964?

    Do you remember that LBJ, as a leading Senator, in the late 50s, passed a Civil Right s Act through that was a sham. Had no teeth, was a complete gift to the segregationists. All talk, no teeth. Useless.

    Why was the one in 64 the one with teeth?

    Because people were in the streets! We MADE him do it!

    And several yrs later, we voted enuf Congressmen into office to MAKE Ford pull out of Nam. They shut off the money!

    The same Congress filled with freshmen that gave us the Freedom of Info Act, expanded Medicare and education benefits, reopened the JFK investigation, ripped the CIA open…

    Stop looking to Leaders.WE need to be the change we want to see in the world!

    And stop pretending Obama is more than just the President…that’s all he is….

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