16 November 2009

In Defense of Populism

Generally, Christopher Hitchens has some pretty interesting things to say, but I thought this dull criticism of Sarah Palin was a bit routine with the same tired attempts to summarize the "teabaggers" as imbeciles who can't think for themselves. And I'm not Pro-Palin either. From Newsweek:

The United States has to stand or fall by being the preeminent nation of science, modernity, technology, and higher education. Some of these needful phenomena, for historical reasons, will just happen to concentrate in big cities and in secular institutions and even—yes—on the dreaded East Coast. Modernity can be wrenching, as indeed can capitalism, and there will always be "out" groups who feel themselves disrespected or left behind. The task and duty of a serious politician, as Edmund Burke emphasized so well, is to reason with such people and not to act as their megaphone or ventriloquist.
It's not a bad thing that there are well-educated people on the East Coast. What's a bad thing is the same boneheads that fucked up the economy are the ones trying to establish new policies that will benefit a group of our "betters" in Wall Street and Washington. That and a dollar falling into post-Soviet Union ruble status is enough to create a large group of pissed-off Americans.

President Obama
told a group of Chinese students that the free-flow of information is an important way to hold the government accountable. It's certainly allowed a lot of ordinary people to realize how awful everything is in Washington and Wall Street.

5 comments:

Anonymous said...

Don't panic about the dollar! A gradually falling dollar doesn't really hurt us.

Last year we imported $2.5 trillion of goods and services and exported $1.8 trillion of goods and services. So, for every dollar of imports that just got more expensive, about 72 cents of exports just got more competitive.

Also, most Americans' consumption is not spent on imports, so we are somewhat insulated. Personal consumption is about $10.1 trillion, so even if ALL imports were on consumption (which is not true since some investment is imported), only about 25% (2.5 trillion/10.1 trillion) of the stuff we buy is imported and therefore subject to a price hike from the falling dollar.

As long as everyone doesn't panic and sell dollars at once, we'll be fine. China wont' do it because a drop in the dollar would hurt them even more than it hurts us.

A-ro

Citation for consumption, imports and exports numbers:
http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=5&ViewSeries=NO&Java=no&Request3Place=N&3Place=N&FromView=YES&Freq=Year&FirstYear=2008&LastYear=2009&3Place=N&Update=Update&JavaBox=no#Mid

Nixon said...

Definitely an interesting policy standpoint from a macroeconomics perspective, but let's think about the most important person in the world, me! It's tough getting by when all your savings are in dollars and you're living abroad. I might have to cut back on my billiards night. =)

Anonymous said...

That must be the most honest comment anyone has ever posted on the internet.

Danny DeMichele said...

It's tough getting by when all your savings are in dollars and you're living abroad. I might have to cut back on my billiards night.

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China wont' do it because a drop in the dollar would hurt them even more than it hurts us.