Slouching toward the poor house

Maybe it's just the way things are now.  The fossilized approach to all problems, no matter how big, is all that's possible.  I read Michael Moore's take on the failure of General Motors, something he's followed since the early days of its decline (his "Roger & Me" being his first big movie hit), and I think he's right.  In part, of course, I think he's right because it's what Waldenswimmer said several months ago.  The auto factories owned by GM should be transformed into modern transportation factories building mass transit (light rail) and high speed rail locomotives and rolling stock, with some aspect of its ongoing car business used to build fuel-efficient hybrids and electric cars.  It's time to phase the internal combustion engine out, and put all those trained factory employees to work building technology with a future.

Michael cites the example of World War II as precedent: during the war, GM stopped building cars and converted to tanks, jeeps and machine guns, among other war-related manufacturing. GM did it fast, too, and did it successfully.  The United States government has invested enormous sums of money in attempts to resuscitate General Motors, more than the capital stock of the company is actually worth.  Why not use that stake to simply buy the corporation and its subsidiaries?  Why this idea that GM is going to "emerge" as profitable by tweaking its economic model?  Why, in other words, this pointless and very expensive magical thinking?

Well, for one thing, FDR isn't President.  The current crop of Democratic "leaders" just can't pull the trigger, and that includes Obama.  They keep thinking that thinking small will succeed, that an incrementalist approach to overwhelming problems will restore the U.S. economy from its present moribund state to a thriving, job-producing colossus. It won't.  The recession may "end," but the U.S. economy will nevertheless be stuck at a level of affluence about 40% lower than when the crisis began in July, 2007.  The only way out is to create jobs, and the only practical way to create jobs is to move to a completely different energy paradigm.  Obama keeps using the word "green" as kind of talisman; well, here's a chance to actually implement a "green" solution on a massive scale. 

FDR established Social Security by refusing to believe that the country had been reduced to a state where old folks could be forced to subsist on tins of cat food heated on gas rings.  Obama, faced with a similar crisis in healthcare which affects 50 million people, is stalled in his approach because the medical insurers and hospitals don't like his "public insurance" element, so the "negotiations" have broken down.  This is how blatant the control of business over government has become: if private industry says no, then we can't do it.  So forget single-payer, as Waldenswimmer also said a long time ago.  Blue Cross doesn't like it.  So the effect of all those uninsured Americans is that every year 18,000 Americans die unnecessarily, according to a study by the Institute of Medicine.  Six times as many people die every year as died in the 9-11 attacks, yet we've turned the world upside down to deal with those 19 hijackers who casually walked through our security systems and trained themselves to destroy us using our flight schools, but the expansion of Medicare to cover everyone cannot be done, because...a large group of insurers and hospitals are making more money the other way.  So, instead of actual medical care, let's put all the medical records online.  That should do it, and I'm sure there will never be a problem with hackers accessing the medical records of every living American and broadcasting them all over the world.  Meanwhile, it will look like we're doing something, and that's always the key.

As I said before, I've been reading this history by David Halberstam about the Korean War, particularly that first terrible winter of 1950-51, when the delusions of Gen. Douglas MacArthur led the Marines and Army into a terrifying trap in the far north of Korea.  Surrounded by 300,000 Chinese infantry which MacArthur said simply weren't there, the field leaders of the Marines trapped near the Chosin Reservoir and the Army farther west had to think for themselves.  The most creative, brave and resourceful of those leaders, such as General Paul Freeman of the Army and Gen. O.P. Smith of the Marines (picture above), figured a way out that avoided massacre.  Sometimes doing timid, half-hearted measures simply doesn't work.  FDR recognized that reality.  The current batch of corporate errand boys in Congress and the White House simply don't.  It's quite possible to incrementalize your way to the poor house.