Wednesday, July 19, 2006

No Arafat

One player missing from the current Middle East crisis is Arafat. Israel and the US couldn't wait to be rid of him. Israel kept him prisoner in his office for the last few years of his life, which may have shortened his life. But he could control the Palestinians better than anyone else when he wanted to. Abbas is not his successor. Although he holds the same position, he doesn't have the same power. If he were around there would be someone meaningful to negotiate with, although Bush and Olmert wouldn't talk to him.

Leo Strauss and the Neo-Cons

A recent New York Times Book Review article on a new book about Leo Strauss says that his conservative disciples who promoted the Iraq war as members of the Bush administration do not reflect his thinking. His neo-con disciples include Paul Wolfowitz and Richard Perle, among others. (Perle has recently written an op-ed for the Washington Post and conducted an on-line discussion.)

They were among the most outspoken advocates of war with Iraq and had enormous power because they held important government positions or because they were well connected politically with senior administration officials. I don't know enough about Strauss' political philosophy to argue the point of whether he would have favored invading Iraq or not, but there is one element of his background in the review that is connected to Iraq: Strauss' embrace of Zionism. It may not be an accident that his disciples who were most ardent in arguing for war with Iraq were also Jewish. Perhaps the main thing they took from him that influenced their feelings about Iraq was his Zionism, rather than his political philosophy. Israel was a big promoter of the war with Iraq, just as it is now a big promoter of war with Iran. (While Israel is trying to get the US to go to war with Iran, it is engaged in its own war with Lebanon.)

Was it the Zionism of the influential Jews in the administration -- learned from or reinforced by Strauss -- which led them to lead the charge for war with Iraq? We'll probably never know, but it could well be. There certainly seems to be some link between Leo Strauss and the war.

Saturday, July 15, 2006

Rich Get Richer

All of the papers, including the NYT, report a rise in tax revenues that will reduce the budget deficit. It looks like the wealthy are getting wealthier.

The NYT reports:
Corporate tax payments are expected to exceed $300 billion, up from $131 billion three years ago. The other big increase is an extraordinary jump in individual taxes that were not withheld from paychecks, usually a reflection of taxes on investment income and executive bonuses.
So, the taxes are being paid by rich people who do not get paychecks, but get dividends, stock options, live off of their investments, etc.

We know that Bush's tax cuts predominately went to wealthy taxpayers; therefore, the tax revenues would have been even higher without the tax cuts. Bush, of course, claims that the increased income of rich people is due to his policies, but that's not clear. The fact that wage earners' incomes have not increased indicates that wages have not increased in sync with the dividends and capital gains received by the wealthy. Unemployment is around 4 percent, which is pretty close to full employment. With a booming economy at full employment, why is there no wage inflation? It's because of globalization. Manufacturing and services jobs are both being outsourced for much lower wages than those prevailing in the US. In addition, illegal immigrants tend to depress American wages even further for those jobs still remaining in the US. Because lower end wages are being kept so low, the upper end CEOs , other senior executives, and investors are reaping even greater profits, and thus paying more taxes. It is not because they are investing in America, creating new jobs, etc. They are profiting from the selling of America.

Friday, July 14, 2006

North Korean Missile Test Failure

A lot of politicians and talking heads have taken solace from the failure of the North Korean Taepodong-2 missile shortly after its launch. They have not mentioned that the rocket sat on the launching pad for days, possibly being fueled and unfueled. Then, it looks as if the rocket was launched on a very short deadline, just after the Shuttle launched on July 4, which means that the technicians may have been under a lot of pressure to launch it quickly. They may have being doing this on the political orders of Kim Jong-Il, rather than the rocket scientists who built the rocket. If the test were done on political orders and on a political schedule, then we can take less comfort in its failure than if the test had been a purely technical one. On the other hand, because of that, the scientists may have gotten less useful data than if they had run the test on their own schedule.