Krugman: “We Live In Surreal Times”

Economic Crisis Hijacked by an Agenda to Repeal New Deal

Larry Hamm, People’s Organization for Progress

[Update: 3/6/12 – Better late than never! Today Crooks and Liars posts a video of Krugman’s remarks – Watch it!]

Although I had planned to go to Washington DC for the Keystone XL Pipeline protest, at the last minute I decided to avoid all the carbon emissions from driving down there and instead go next door to Princeton to hear Paul Krugman speak on the jobs crisis.

Construction of the Keystone Pipeline would be a global warming disaster – and its fate is entirely in the hands of President Obama.

In this case, there will be no obstructionist “party of pollution” “too dirty to fail” Republican Congress to blame.

The decision is exclusively President Obama’s to make and will be another big test of his commitments to respond to the global warming crisis.

Thus far, Obama has failed to take credible action internationally – Strike One. His market based alternative to EPA regulation, the cap/trade scheme failed in Congress – Strike Two. And he has abandoned and weakened EPA regulatory options – Strike Three.

So approval of Keystone would be Strike Four.[Update: watch Democracy Now! segment w/Bill McKibben]

But let’s get back to Princeton.

Nobel Economics Prize winning Princeton Professor and NY Times columnist Paul Krugman was the luminary on a panel to discuss the jobs crisis.

Krugman’s remarks were brief, but cogent.

He said we lived in “Surreal times” (a perspective I too share).

Krugman praised the Occupy Wall Street Movement for “changing the conversation” and suggested that it had helped “stiffen [President Obama’s] spine” – although noting, without evidence or example, that Obama had begun to stiffen his spine earlier this year, before OWS began.

I disagree with Krugman here – Obama has merely stiffened his rhetorical spine, not his policy spine. Campaign mode – not a stiffer spine – is what explains recent seemingly progressive steps by the White House.

Specifically, Obama’s recent home mortgage refinance, student loan, and jobs initiatives are all seriously flawed and very small bore incremental steps that will have little impact on the crisis. They will cost powerful bailed out banks and Wall Street financial institutions absolutely nothing.

Krugman emphasized that from an economic perspective, the focus on austerity and budget cuts was deeply damaging, and was the result of efforts of those who had “hijacked the economic crisis” in an effort to repeal the New Deal.

Economically, we do not have a deficit problem, we have a crisis of lack of effective demand and huge unemployment, he said.

Krugman concluded that the problems and solutions are well understood, but Washington lacks the political will to act.

Politically, Krugman said change in Congress was impossible, at least until after the 2012 elections. He clearly laid the blame on obstructionist Republicans who would deny President Obama any success.

Given the preceding barn burning presentation by Larry Hamm, State Chair of the People’s Organization for Progres, Krugman was basically forced preface his remarks by noting his role as dispassionate analyst, not activist.

While Krugman was on a similarly progressive wavelength,he was outshone by Larry Hamm, State Chair of the People’s Organization for Progress.

While I was aware of the POP’s protests in Newark, I’m embarrassed to say that I was unaware of Mr. Hamm’s work on Apartheid disinvestment and had never heard Mr. Hamm speak – he is an awesome orator.

Hamm also expressed solidarity with Occupy Wall Street, and began with an historical allusion to the 1955-56 Montgomery Bus Boycott, that ended segregation of public transit.

Hamm, interrupted by numerous rounds of applause from the packed crowd at Princeton Presybyterian Church, then laid out the POP core demands:, revolving around social and economic justice and “a twenty first century New Deal”.

Hamm spoke movingly about unemployment, poverty, and hunger in Newark.

He highlighted the disproportionate impact of the home mortgage crisis on blacks, because the little capital they have is invested in their homes. He said more wealth has been stolen from black people in the subprime housing mortgage and foreclosure scam, then since Emancipation. He noted that foreclosure rates are 25% of greater, Irvington has a 40% foreclosure rate.

Representative Rush Holt speaks at Princeton jobs crisis event.

I was pleased to see Congressman Rush Holt attend and wait patiently in line for over 30 minutes to speak.

Although praised by panelist Carol Gay for his vote in opposition to the recent free trade agreements with Columbia, Panama, and Korea, Holt instead touted his key achievement as his historic vote against the Republican hostage taken driven Obama debt ceiling compromise.

Holt also praised the OWS Movement and lauded the jobs event as an example of civil democratic discourse.

Later, in response to a question, Mr. Hamm spoke about the repressive tactics police and local officials are using to squash dissent and protest, and negate Constitutional rights of free speech and assembly.

“This is a battle for Democracy!” he warned.

Amen, Bro.

Magritte – “The Menaced Assassin” (1927)