The argument that Obama is anti-business is nothing more than the old propaganda trick that the best defense is a good offense, so blame the victims for your crimes. The high-tone intellectual argument for that position was supplied by Harvard professor Niall Ferguson, a transplanted Thatcherite, at the same Aspen, Colo., gathering where Zuckerman spoke.
At a conference on ideas paid for and attended by the rich and well-positioned, Ferguson argued that the high rate of unemployment is not due to the Wall Street high rollers whose funny-money games wiped out 8 million jobs but rather the extension of the government’s unemployment insurance program:
“The curse of long-term unemployment is that if you pay people to do nothing, they’ll find themselves doing nothing for very long periods of time. Long-term unemployment is at an all-time high in the United States, and it is a direct consequence of a misconceived public policy.”
Yes, except that the public policy that was so terribly misconceived was that of radical deregulation, launched by the Reagan Revolution and implemented by President Bill Clinton, not the pathetic palliative of unemployment checks.
Notice that the attacks on Obama are not about his having followed George W. Bush’s example of throwing money at Wall Street, the cause of the meltdown and the run-up of the national debt, but rather the much smaller amount spent on ameliorating the pain that the titans of finance caused for ordinary citizens. And of course there is never a word of self-criticism on the part of folks like Ferguson, Immelt and Zuckerman for their own roles in having cheered on the radical deregulation that made this mess not only possible but inevitable.
Not so Volcker, once the darling of fiscal conservatives when he tamed inflation during the Carter and Reagan years, and when as Fed chair and later as an influential observer he failed to stand publicly against the move to radical deregulation. As was reported in the Times interview, “In retrospect, Mr. Volcker regrets not challenging the widely held assumptions that underpinned much of this. `You had an intellectual conviction that you did not need much regulation—that the market could take care of itself,’ he says. `I’m happy that illusion has been shattered.’ ”
Unfortunately, that illusion has not been shattered for many of the elite in this country, as evidenced by their rage against Obama’s too modest steps in the right direction.