The YOYO Handcuffs
Posted By Elisa On 6th June 2006 @ 17:31 In rankism in education, rankism at work, rankism in health care, rankism and the state, financial rankism, new world order | 2 Comments
Progressive economist Jared Bernstein has written an article about economic policy that has strong affinities with Fuller’s position on dignity as a [1] unifying value for the Democratic party. The article is reprinted below with permission.
The YOYO Handcuffs
By Jared Bernstein
Here’s a test: name one economic policy, other than tax cuts, associated with outgoing Treasury Secretary John Snow.
Give up?
Now think about this: what is the economic policy of the Bush administration? What about the Congress? What about the Democrats?
If all you could come up is that the first two aforementioned groups want to [2] cut rich people’s taxes, I’m with you. Beyond that, none of the above has offered a coherent strategy for meeting America’s economic challenges.
And these problems are prodigious: [3] global economic competition; 46 million people lacking health insurance; the seemingly inexorable [4] climb of inequality; obscene [5] CEO compensation packages totally unrelated to performance; an economy that’s doing fine, until you consider the people in it.
Each of these problems needs concerted thought and action. But while the administration’s new nominee for Treasury Secretary, [6] Henry Paulson, is certainly an able economist, he will likely be as ineffectual as was Secretary Snow.
There’s a reason why the nation’s economic policymakers are suffering from a deficit of ideas: It’s [7] YOYO economics.
YOYO is an acronym for “You’re on your own,” and it is the guiding light of economic policy as practiced today. The idea is that no matter what the problem is, the solution is less government and more markets. You’ve seen many examples of YOYOism in action, but here’s a primer:
Problem: The looming health care crisis.
YOYO solution: individualized [8] Health Savings Accounts, designed to create better “health care shoppers.”
Problem: The economic insecurity associated with globalization.
YOYO solution: more [9] education. If you’re not smart enough to compete with cheaper, skilled workers abroad, well, “you’re on your own.”
Problem: Solvency in your old age.
YOYO solution: Try your hand in the [10] stock market with a private account.
And underlying all of this is the biggest YOYO tactic of all: cut taxes to the point where government is forced to contract so there’s no question of an [11] activist agenda. If you can enrich your donors along the way…well, then it’s a “twofer.”
The problem is, as is becoming undeniably clear, YOYOism doesn’t work. It failed lethally in [12] New Orleans. It’s done nothing to stop the growth of the uninsured, the rise in poverty, the decline in median earnings (i.e., the real earnings of the typical worker, down 2% over the recovery, while productivity is up 15%), nor the rise in the profit share of national income, now at a 39-year high. The public rejected it with the failure of the Bush-push to privatize Social Security, and now the polls show deep dissatisfaction with the president’s management of the economy.
There’s a countervailing message rising out of the anxiety generated by the new economy:
“Policy makers, work with us. We’re in this together. Rebuild a government that we can believe in, and we will do so. Conceive and articulate an agenda that harnesses the tremendous capacity, skill, and flexibility of our economy to meet the challenges. Instead of creating 300 million individual risk-bearing silos, let’s pool risk though universal health insurance coverage and a strengthened pension system. Let’s build an ambitious public/private partnership with the goal of energy independence to replace the jobs and wages lost to globalization.”
You have to strain to hear this message, but it’s there. It is, however, in desperate need of amplification. The new treasury secretary can’t help–his hands are tied by YOYO ideology. So the question is: who will step up and amplify this liberating message?
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2 Comments To "The YOYO Handcuffs"
#1 Comment By Kevin barron On 7th June 2006 @ 22:14
You're right -- the message is out there. But I dont think you have to strain to hear it (just tune out the mainstream media noise machine). In terms who will amplify the message, I believe that this will happen as a natural result of the "intention economy" (see http://doc.weblogs.com/2006/03/14). Of course that assumes that the net survives and the phenomenon Doc describes becomes something I prefer to call an "intention ecology", but that's another discussion.
#2 Comment By Elisa On 9th June 2006 @ 07:30
That's a very interesting essay! My question is whether it's possible to drill down to an authentic intention. If intention isn't shaped by marketers, it is shaped by parenting, education, and community. Are the messages sent by community elites any less insidious than the messages on Saturday morning cartoons? One messages you to vote for a tax policy to uphold a way of life and the other messages you to buy a fashion doll to uphold a way of life. Check out the astounding legislation to put an end to "constructed" history in Florida: http://tinyurl.com/nmxqn Imagine the intentions that will come out of that!
Article printed from Breaking Ranks: http://www.breakingranks.net/weblog
URL to article: http://www.breakingranks.net/weblog/archives/203
URLs in this post:
[1] unifying value: http://www.breakingranks.net/weblog/archives/187
[2] cut rich people’s taxes: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/04/AR2006060400782.html
[3] global economic competition: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/05/AR2006060501298.html
[4] climb of inequality: http://www.alternet.org/story/37149
[5] CEO compensation packages: http://www.washingtonpost.com/wp-dyn/content/article/2006/05/25/AR2006052501324.html
[6] Henry Paulson: http://www.washingtonpost.com/wp-dyn/content/article/2006/05/30/AR2006053001341.html
[7] YOYO economics: http://www.noyoyoeconomics.com
[8] Health Savings Accounts: http://www.thehealthcareblog.com/the_health_care_blog/2006/04/policy_can_the_.html
[9] education: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/05/AR2006060501025.html
[10] stock market: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/06/AR2006060600337.html
[11] activist agenda: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/05/AR2006060501282.html
[12] New Orleans: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/03/AR2006060300430.html
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