The Witchhunt is On.

“Is our huge deficit a problem today? Not if you think people should have jobs. Private sector demand has plunged because of the collapse of the bubble. If the public sector does not fill the demand gap with deficit spending, then we have less demand and fewer jobs. That’s worth saying a few hundred thousand times since the deficit hawks have filled the airwaves and cyberspace with so much nonsense.“

The CEPR’s invaluable Dean Baker rails anew at the deficit hysteria currently in Beltway vogue. I’ve said this several times already now, but I just cannot take anyone seriously who froths and frets about looming deficits, but then says nary a word about out-of-control defense spending. And right now, when it comes to such deficit peacocks, DC is a full-fledged menagerie.

Update: “The danger posed by the deficit ‘is zero. It’s not overstated. It’s completely misstated.’” Ezra Klein talks with James Galbraith, son of the venerable J.K. Galbraith and originator of the great witchcraft metaphor, about the deficit hysteria seizing Washington:

“[W]e should be focusing on real problems and not fake ones. We have serious problems. Unemployment is at 10 percent. if we got busy and worked out things for the unemployed to do, we’d be much better off. And we can certainly afford it. We have an impending energy crisis and a climate crisis. We could spend a generation fixing those problems in a way that would rebuild our country, too. On the tax side, what you want to do is reverse the burden on working people. Since the beginning of the crisis, I’ve supported a payroll tax holiday so everyone gets an increase in their after-tax earnings so they can pay down their mortgages, which would be a good thing.“

FinReg: Where Things Stand.

“Last week, Congress decided it would not confront Too Big To Fail, the single gravest threat to our collective financial security. But there are still several key Wall Street reforms worth fighting for–reforms that must be enacted before the next crisis hits, with or without a big bank break-up. And fortunately, key Senators have authored amendments dealing with each one.” In HuffPo, Zach Carter delineates the most worthwhile progressive amendments to financial reform still up for debate in the Senate. A good encapsulation of the state of play.

Change You Can Be Afraid Of.

“‘You’re coming of age in a 24/7 media environment that bombards us with all kinds of content and exposes us to all kinds of arguments, some of which don’t always rank all that high on the truth meter,’ Obama said at Hampton University, Virginia. ‘With iPods and iPads and Xboxes and PlayStations, — none of which I know how to work — information becomes a distraction, a diversion, a form of entertainment, rather than a tool of empowerment, rather than the means of emancipation.“

Sigh. We’ve come a long way from “Dirt Off Your Shoulder.” In a commencement speech at Hampton University over the weekend, President Obama channels his inner grumpy-old-man (Roger Ebert?) to warn new grads about the perils of gaming and gadgetry. First off, it’s a ludicrous statement on its face: iPods are not particularly hard to work — and, if they’re really insidious Weapons of Mental Distraction, why give one to the Queen (who, by the way and to her credit, has fully embraced the Wii?)

Speaking more broadly, misinformation has been around as long as the republic — go read up on the Jefferson v. Adams race of 1800. If anything, today’s information society allows people to more easily hear the news from multiple sources, which is a very good thing. In fact, the reason our political culture these days is constantly bombarded with irrelevant, distracting, and inane mistruths has nothing — none, zip, zero — to do with iPods, iPads, Xboxes, or Playstations. It has to do with ABC, CBS, WaPo, Politico, and the rest of the Village, i.e. the very same people the President was noshing with a few weeks ago at the ne plus ultra of “information becoming distracting entertainment“, the White House Correspondents’ DInner.

Finally, while the “multi-tasking is distracting” proposition does seem to hold water, scientifically speaking, the jury’s still out on the pernicious effects of Xbox’s and the like. In fact, there are plenty of studies suggesting that video games improve vision, improve reflexes, improve attention, improve cognition, improve memory, and improve “fluid intelligence,” a.k.a. problem-solving. So, let’s not get out the torches and pitchforks just yet. It could just be that the 21st-century interactive culture is making better, smarter, more informed citizens. (And, hey, let’s not forget Admongo.)

To get to the point, while it’s not as irritating as the concerned-centrist pearl-clutching over GTA in past years, it’s just a troubling dynamic to see not only a young, ostensibly Kennedyesque president but the most powerful man in the world tsk-tsking about all this new-fangled technology ruining the lives of the young people. Let’s try to stay ahead of the curve, please. And let’s keep focus on the many problems — lack of jobs, crushing student loan and/or credit card debts, etc. — that might be distracting new graduates right now more than their iPods and PS3s. (Also, try to pick up a copy of Stephen Duncombe’s Dream — Video game-style interactivity isn’t the enemy. It’s the future.)

Govt’s in Ur PC Taking Ur Net! …or not.

“This statement describes a framework to support policies that advance our global competitiveness and preserve the Internet as a powerful platform for innovation, free speech, and job creation. I remain open to all ideas on the best approach to achieve our country’s vital goals with respect to high-speed broadband for all Americans, and the Commission proceeding to follow will seek comment on multiple legal theories and invite new ideas.“In happier news on the Obama tech policy front (and after a disconcerting public wobble in the final days before the decision), FCC Chairman Julius Genachowski outlines a “third way” for Internet oversight that includes Net Neutrality and gives the agency Title II (i.e. regulatory) authority over transmission services, to prevent bad behavior by internet services providers (ISPs) controlling the pipe. (Net neutrality is explained here, but the “First Amendment of the Internet” is a good way of looking at it. Basically, it means ISPs can’t privilege and/or block content on a whim.)

While the Big ISPs begin to mount their counter-offensive, the usual blatherers on the Right are, naturally, decrying the decision as Phase 2 in the administration’s socialist-cryptofascist takeover to take over all things good and wonderful. Suffice to say, they don’t seem to understand the issue or the Internet very well. (Also, this is really a side matter, but, regarding the highly goofy “Big Guvmint is taking over the Internet!” meme: This is completely and utterly not true in any way. But, just so we all have the history straight: Big Guvmint created the Internet. If you haven’t heard of DARPA or J.C. Licklider, think Al Gore.)

The Great Deficit Witchhunt.

“‘The frame of the debate is between those who think the witches have taken over the entire community and the whole lot of them should be burned and those who think there are only a few witches and burning just a few of them would be enough to appease the demons,’ said James Galbraith, the Lloyd M. Bentsen Jr. Chair in Government at the University of Texas. ‘There are a few of us operating safely removed from the bonfires who maintain there is no such thing as witchcraft.‘”

As more troubling details emerge about its funding and backers, and as commission member Andy Stern, late of SEIU, settles into a troubling Lanny Davis-ish “those fringe liberals are ruining everything” mode, The Huffington Post‘s Sam Stein reports in on the early doings of Obama’s deficit commission.I went over my thoughts on deficits and this commission in my SotU post a few months ago, but to repeat myself:..

On deficits: “We know exactly what happens when you cut spending too quickly after a virulent recession — It was called the 1937 Roosevelt recession, and it would be flagrantly idiotic to repeat it. Just because the GOP doesn’t seem to understand basic Keynesian economics doesn’t mean we should follow them down the rabbit hole of flat-earth thinking, just so we can look bipartisan…[Besides, p]eople were not looking to President Obama for this sort of deficit tsk-tsking and small-bore, fiddling around the margins.“

On this commission: “It’s clear to everyone involved that the entire point of this commission is CYA: i.e, to create political cover for raids on entitlement spending, while once again ignoring the grotesquely swollen defense budget…In other words, this commission will basically just be a chance for deficit peacocks to pretend they’re Serious People and ‘make tough decisions,’ while in fact the one really tough idea that actually needs to be tackled — reining in defense spending — will be completely avoided.“

What I said then still stands. At best, this commission always sounded to me like centrist kabuki theater for deficit peacocks, and, given what we’re learning about some of its backers, it could end up being much, much worse.

Bank to Basics.

“The big U.S. banks were the source of the global financial crisis, in part because their bigness and their practices were copied by major banks around the world. What happens in this reform effort is being watched avidly in many countries, because it will say much about how global finance is to be conducted. What is often missing in these discussions are the assumptions people make about banking and its role in a modern economy. We should begin therefore with some first principles.“

As the manifestly fradulent behavior by Goldman Sachs of late comes to full light — one among many, it seems — Numerian of The Agonist goes back to basics to make a case for strong banking reform. “The very first lesson we should learn from this crisis, which we thought this nation learned in the 1930s, is never again…The second lesson we should learn from this crisis is that we should not as a nation have to learn these lessons over and over again every 80 years. Something has to be done to make the legislative changes this time stick.”

Hudson Hawks (Lehman’s Garbage).

“‘How can anyone — regulators, investors or anyone — understand what’s in these financial statements if they have to dig 15 layers deep to find these kinds of interlocking relationships and these kinds of transactions?’ said Francine McKenna, an accounting consultant who has examined the financial crisis on her blog, re: The Auditors. “‘Everybody’s talking about preventing the next crisis, but they can’t prevent the next crisis if they don’t understand all these incestuous relationships.’“

The NYT delves into the sordid story of Hudson Castle, a.k.a. Lehman Brothers’ alter-ego, which they used to squirrel away shady investments. (This shell game didn’t even make the recent Lehman report, which apparently found enough “materially misleading” behavior to warrant criminal charges against Lehman’s leadership.)

On Jobs and the Jobless.

Via Speaker Pelosi’s official website, some much-needed perspective on the jobs situation under Dubya and Obama respectively (so far). Next time anyone of the (Keynesian-challenged) Republican persuasion starts to rant and rave about the stimulus, this might be a good graph to keep in your back pocket.

Of course, this is not to say we’re anywhere near the clear on the jobs front. Not only is there some frightening new data around about the length of unemployment in this downturn, The Atlantic‘s Don Peck makes a compelling case about how this new jobless era will transform America: “The unemployment rate hit 10 percent in October, and there are good reasons to believe that by 2011, 2012, even 2014, it will have declined only a little…The worst effects of pervasive joblessness–on family, politics, society–take time to incubate, and they show themselves only slowly. But ultimately, they leave deep marks that endure long after boom times have returned.“

Partial Eclipse.

“The troubled and expensive Ares I rocket that was to replace the space shuttle to ferry humans to space will be gone, along with money for its bigger brother, the Ares V cargo rocket that was to launch the fuel and supplies needed to take humans back to the moon. There will be no lunar landers, no moon bases, no Constellation program at all.” As expected (and feared) earlier this year, the Obama administration’s proposed NASA budget for the next five years cancels any and all plans to go to the moon anytime soon. “‘We certainly don’t need to go back to the moon,’ said one administration official.“

Sigh.

Ok, first off, the administration official who uttered the last sentence should be filed away next to Mr. Left of the Left and Ms. Pajamas as people who should no longer speak for the White House in any capacity whatsoever. Full stop, end of story. Putting my speechwriter cap on for a second: In most any political situation, ridiculing the dreams of an entire generation does not make for particularly good messaging.

Anyway, anonymous WH official aside, NASA administrator Charles Bolden sounded a better note about all this: “We’re not abandoning anything. We’re probably on a new course but human space flight is in our DNA. We are not abandoning human space flight by any stretch of the imagination. We have companies telling us they’re excited to get humans off this planet and into orbit. I think we’re going to get there and perhaps quicker than we would have done before.“

And, to be clear, the administration’s NASA budget increases the agency’s funding by $6 billion over the next five years. The new budget ups research and development spending into cheaper heavy launch mechanisms, emphasizes more robotic exploration missions and observational experiments into climate change, extends the life of the ISS (although, with only five more shuttle missions remaining, other nations will have to help service it), and works to promote the various commercial space enterprises moving along right now.

All of this is well and good, but it would be nice to see some recognition of the civic importance of manned space flight by this administration. In their words, NASA is scrapping Constellation on account of it being “over budget, behind schedule, and lacking in innovation due to a failure to invest in critical new technologies.” And, given that we still had a lot of the expenditures before us, I suppose now was as good a time as any to kill the program if it’s not the right direction to go in.

That being said, how many more times are we going to do this? We keep stopping and starting and stopping and starting our post-Shuttle plans for space, so that now, after five final shuttle missions this coming year, we will longer have the capability anymore as a nation to send men and women into orbit. “If implemented, the NASA a few years from now would be fundamentally different from NASA today. The space agency would no longer operate its own spacecraft, but essentially buy tickets for its astronauts.” Forty-one years after we first reached the moon, that’s just plain sad.

Ultimately, the central finding of the Augustine commission’s final report, released this past October after extensive study of NASA’s current situation, is a sound one: “The U.S. human spaceflight program appears to be on an unsustainable trajectory. It is perpetuating the perilous practice of pursuing goals that do not match allocated resources.” In other words, we’ve been trying to talk the talk without walking the walk. If we’re going to get serious about manned space flight, we need to stop piecemealing NASA and start making manned exploration a funding priority.

In total, the agency is slated to get $100 billion over the next five years. To put that number in perspective, that’s less than a fifth of our defense budget for 2011 alone, and that’s going by the most conservative numbers around — NASA’s five-year budget could be closer to a tenth of next year’s defense spending. (For its part, the Augustine commission set a price tag of $3 billion a year to get serious about manned exploration.)

If we had put anywhere near that kind of money into exploration and R&D over the years, would we now be in this position, where we face the Hobson’s choice of replicating expensive 50-year-old launch tech or being completely grounded as a nation? The lack of thinking about our long-term priorities sometimes is staggering to me. I’ve said this before, but I still believe it holds true: Short of possibly genomic research and advances in AI, nothing we do right now will matter more centuries or millennia hence than establishing a presence off-world…if we even have that long. Not to get all Jor-El up in here, but we really have to start getting serious about this.

SotU: The “Fetal Position” Fallacy.

“I know that we haven’t agreed on every issue thus far, and there are surely times in the future when we will part ways. But I also know that every American who is sitting here tonight loves this country and wants it to succeed. That must be the starting point for every debate we have in the coming months, and where we return after those debates are done. That is the foundation on which the American people expect us to build common ground.“

They do? I thought they expected change we can believe in. But worn-out nods to an elusive, ephemeral, and, given the current GOP, often undesirable bipartisanship does not constitute such. In any event, so concluded the President’s State of the Union address last Thursday. This is old news at this point, so I’ll keep it brief. Suffice to say, while it got better as it went along, I thought the speech was merely ok, and often troubling. Throughout the evening, the president’s remarks had that excessively-poll-tested, small-bore feel that conjured up grim odors of 1995 and 1996. Throw on a flannel and fire up the Pulp Fiction soundtrack, y’all: One year into the Obama era, are we already back to V-chips and school uniforms?

Part of the president’s problem is that the Senate is looking like the elephant’s graveyard of progressive-minded legislation right now. The president called for an energy reform bill. The House went out on a limb to pass one last June. The president called for a financial reform bill. The House passed one in December. The president called for a new jobs bill. The House also passed one in December. All of these bills, and many, many others, are languishing in the Senate right now, as Sen. Reid and others try to figure out how to somehow get something — anything! — passed with a larger majority than Dubya ever enjoyed.

The Senate issue aside, there were other problems in the President’s speech, including far too many nods and feints in the direction of ridiculous deficit peacocks like Judd Gregg and Evan Bayh. First off, at the risk of sounding like Dick Cheney, I tend to think that deficits are troubling, but, even in the best of times, they shouldn’t really be the foremost driving concern of our government policy. If we run a deficit to invest in education now, we’ll save money down the road and improve Americans’ quality-of-life to boot. (Put in somewhat ugly fashion, it’s invest in schools now or prisons later.)

And that being said, right now is emphatically not the best of times. We know exactly what happens when you cut spending too quickly after a virulent recession — It was called the 1937 Roosevelt recession, and it would be flagrantly idiotic to repeat it. Just because the GOP doesn’t seem to understand basic Keynesian economics doesn’t mean we should follow them down the rabbit hole of flat-earth thinking, just so we can look bipartisan.

No, the problem with deficits isn’t necessarily the running of a deficit. It’s the running-up of massive deficits for patently stupid reasons — like, say, prosecuting a war of choice in Iraq, or doling out excessive tax breaks to multi-millionaires. And that’s why some of the President’s nods in that direction were so irritating last Thursday. Calling for a spending freeze on discretionary spending, without touching the exorbitant “security-related” budget (cute euphemism, that), is kabuki theater at best. And at worst, you’re balancing the books at the expense of our most vulnerable citizens. (I tend to agree with Candidate Obama on this issue anyway.)

Similarly, this deficit commission which the president plans to foist on Congress by executive order after the Senate killed it, is, again, at best kabuki theater and at worst trouble. It’s clear to everyone involved that the entire point of this commission is CYA: i.e, to create political cover for raids on entitlement spending, while once again ignoring the grotesquely swollen defense budget. (Altho’, to be fair, Secretary Gates has at least tried to rein in growth in this sector.) In other words, this commission will basically just be a chance for deficit peacocks to pretend they’re Serious People and “make tough decisions,” while in fact the one really tough idea that actually needs to be tackled — reining in defense spending — will be completely avoided.

In any event, all this discussion of the deficit ignores the larger problem. Obviously, one of the president’s biggest charges coming into office was to restore economic sanity after eight years of Dubyaite excess. That being said, people were not looking to President Obama for this sort of deficit tsk-tsking and small-bore, fiddling around the margins. You’d think we Dems would have learned this by now. But curling up into a fetal position and mouthing moderate GOP-lite bromides will not stop the Republicans from kicking us, ever.

We have a Democratic president, an 18-seat majority in the Senate, and a 79-seat majority in the House. In short, we Dems need to keep thinking big or we will pay dearly at the polls this November. Perhaps the dysfunction of the Senate is the central problem Obama faces right now, but his speech nonetheless suggests that we’re getting dangerously close to Eisenhower Republican territory now, and not even in the good “the military-industrial complex is completely frakked” kinda way. Without vision, the people perish. So too will our party, if we keep up with this thin gruel, triangulation schtick. At the advice of the careerist DLC-types over the years, we have tried this path several times over — Put simply, it does not work.