
Rep. Paul Ryan's (R-WI) determination to privatize Social Security and dismantle Medicare -- what he calls a "collectivist system" -- comes, at least in part, from his longstanding devotion to the works of Ayn Rand.
Rand developed the objectivist philosophy, which values the self, capitalism and laissez-faire economics. Ryan, the ranking member of the House Budget Committee, reportedly requires staffers and interns to read her opus, Atlas Shrugged, and gives out copies as gifts.
In his keynote address to CPAC last year, Ryan said Obama's policies sound "like something right out of an Ayn Rand novel."
Fearing political suicide, Republican leaders have tried to distance themselves from Ryan's "roadmap" budget proposal, which calls for privatizing Social Security. But Ryan is upfront about it.
At a 2005 celebration of what would have been Rand's 100th birthday, Ryan called for reforming the "collectivist system" of Social Security by changing it to individual savings accounts.
"If we actually accomplish this goal of personalizing Social Security, think of what we will accomplish. Every worker, every laborer in America will not only be a laborer but a capitalist. They will be an owner of society," Ryan said at the 2005 event, according to a profile written last year in the Milwaukee Journal-Sentinel.
In interviews, he has said Republicans should frame the choice between "collectivism" and capitalism as a moral choice.
"We have an opportunity to make a choice clearly once and for all in the next two elections, and we owe it to the American people to give them a clear choice: Do you want a collectivist welfare state or do you want to get back to being a free market? We need to make a moral, not just practical or statistical, case," he told Reason, a libertarian magazine, in December.
In last year's CPAC address, he claimed the White House had blamed the free market for the financial crisis, then used the crisis as an "excuse to impose a more intrusive state."
And despite GOP attempts to frame these entitlement reforms as something other than privatization, Ryan has been clear on the point.
"Rather than depending on government for your retirement and health security, I propose to empower people to become much more self-dependent for such things in life," he said in a speech to the Hudson Institute last June.
pablito
February 11, 2010 11:21 AM
So tired of insipid comparisons between John Galt and any conservative Republican railing against anything that threatens a pure free market Friedman-esque economy. I am not an Ayn Rand fan, but I've read that book, and the most fundamental issue here is that at least John Galt MADE SOMETHING FOR SOCIETY BESIDES NOISE AND BULLSHIT.
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bmags
February 11, 2010 11:30 AM in reply to pablito
Totally. Can Rep. Ryan create a static electricty run engine (that was it i think) that powers the world (with like NO pollution?)? Is he so long winded that everybody has to skip past his 4 hour tedious speech? (hey you might have something there?)
I'll give Ryan credit, at least he acknowledges that merely tax cuts and defense spending dont balance the budget. This isnt how i prefer to balance the budget, but at least it's REAL.
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jeffgee
February 11, 2010 12:28 PM in reply to bmags
4 hour speeches. Castro and Chavez love the sound of their own voices too.
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ohiomeister
February 11, 2010 6:13 PM in reply to jeffgee
Rand acolytes are probably the most annoying group of people on earth.
They all have a eureka moment when they finally find this pseudo-intellectual BS to use as justification for being greedy and selfish. Most are rich spoiled little children.
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atlasfugged
February 12, 2010 4:09 PM in reply to ohiomeister
Absolutely one of the most poorly written books in the history of American literature. I cannot think of another book that was more agonizing to read. And, the Objectivist philosophy that Rand was attempting to flesh out in that god-forsaken tome is perhaps one of the most vacuous and vile of any put forth in the 20th Century.
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Nancy Irving
February 13, 2010 2:36 AM in reply to atlasfugged
I remember reading in Rand's Wikipedia entry that at her funeral there was a six-foot high "floral tribute," in the shape of a dollar sign!
For all their talk of "freedom," that was proof, if any was needed, that the real meaning behind libertarianism is $, and nothing but $.
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Peter Principle
February 11, 2010 2:28 PM in reply to bmags
This isnt how i prefer to balance the budget, but at least it's REAL.
Afraid not -- Ryan's "budget" doesn't balance for at least 50 years, and only then because he told CBO not to score his humongous revenue-losing tax cut proposals.
REAL isn't in the GOP lexicon any more.
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madmatt
February 11, 2010 11:47 AM in reply to pablito
No Galt is a FICTIONAL CHARACTER, not a real live person, which means HE NEVER MADE SHIT!
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mastershake1
February 11, 2010 11:50 AM in reply to pablito
Not to mention, how is eliminating Social Security and instead taxing Americans in order to perpetually redistribute money to Wall Street, not "collectivist?"
"Privatization" of Social Security or Medicare is just a politically correct way of saying you want to bail out big business.
If the goal is to eliminate "collectivism," it would make more sense to simply eliminate FICA and other taxes and allow people to spend the money on their own.
Of course, doing so would bankrupt the government due to our existing entitlements, so the GOP decides to try and have it both ways.
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Jim
February 11, 2010 12:57 PM in reply to pablito
Damned good comment. And, as for Congressman Ryan - it's nice to have an adult in Congress somewhere who knows the borrow_and_spend must stop and the payback begin. I just finished David Walker's "Comeback America" and I just don't get it how folks can say that Congress' not living within its means will lead to anything different from your neighbor's doing the same thing.
Why is China ascendant? Because they are fiscally responsible with their (formerly our) money. A good model for us, perhaps...
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LauraNo
February 11, 2010 1:53 PM in reply to Jim
There are quite a few articles on the internet which explain why a federal budget is different from our family budgets. Has something to do with being able to print money whenever you want. You could try googling...
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Nancy Irving
February 13, 2010 2:56 AM in reply to LauraNo
The point of having a government is to perform necessary functions that private individuals or groups cannot, or will not, perform.
One of these functions is deficit spending to pull the economy out of recession, when private entities cut back and refuse to spend.
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Peter Principle
February 11, 2010 2:30 PM in reply to Jim
Why is China ascendant? Because they are fiscally responsible with their (formerly our) money. A good model for us, perhaps...
I know you right-wing twinks want a dictatorship, but you are aware that China is a ruthless communist dictatorship, right?
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lousgirl84
February 11, 2010 3:56 PM in reply to Jim
China is not a democracy. It can do what it damn well pleases without having to ask anyone.
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jt307
February 11, 2010 4:38 PM in reply to Jim
Great idea. Let us use China as a role model. We will withdraw the dollar from world markets and use controls to keep its value inflated. Then we can shut down the media and internet to prevent dissent. Then we will have to decide whether to use a paper shredder or a big book burning to rid ourselves of all the bibles you right wing types clutch onto, as well as disposing ourselves of what Bush left of the Bill of Rights, the Constitution and all legal books. And when the Tea Party types stand up to protest we can have our own Tiananmen Square Massacre.
Excellent idea.
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blkblt
February 11, 2010 9:04 PM in reply to Jim
a good model if your willing to look past the poverty, pollution, oppression etc.
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atlasfugged
February 12, 2010 4:12 PM in reply to Jim
Yes, Neo-Mercantilism FTW, right?
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lovethesinner
February 11, 2010 10:32 PM in reply to pablito
I'm confused. Are you saying that a fictional character in a book actually did something in reality?
You understand the difference, I'm sure.
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Lalo35adm
February 11, 2010 11:28 AM
"Fearing political suicide, Republican leaders have tried to distance themselves"...
- Sounds a bit like Obama's new found passion for Porkulus 2.0. If he could save himself from political suicide, why can't others?
Josh Marshall is a passive-agressive tool, trying to paint an advance profile of Ryan to fit with his own view of the world, where only Dems' ideas are worth even considering.
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glblank
February 11, 2010 11:46 AM in reply to Lalo35adm
Ryan has a profile. Boehner's bitch, soon to be Obama's.
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nova voter
February 11, 2010 12:04 PM in reply to Lalo35adm
you sound panicky. something bothering you?
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onecrappyusername
February 11, 2010 12:16 PM in reply to Lalo35adm
Lalo35adm is a passive-agressive tool, trying to paint an advance profile of Josh Marshall to fit with his own view of the world, where only whackjob objectivist ideas are worth even considering.
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Barry Champlain
February 11, 2010 3:12 PM in reply to onecrappyusername
At some level, Lalo believes he will never need to tap-into his own Social Security benefits.
He's got his; get yours.
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theone718
February 11, 2010 12:21 PM in reply to Lalo35adm
This is the main problem with Republican shills. When a Repub is criticized, instead of refuting the statement they IMMEDIATELY SAY "DEMOCRATS DO IT TOO!!! AHHHHH!"
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Duck Stab
February 11, 2010 9:09 PM in reply to Lalo35adm
Josh didn't write this piece, brainiac.
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Mad As Hell
February 11, 2010 11:30 AM
Ha! So much for Ryan being thought of as rational. Brilliant post, Rachel.
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BillSoo
February 11, 2010 12:58 PM in reply to Mad As Hell
Well, technically, given his beliefs, he *is* being rational. Which is to say that he has followed his beliefs to their logical conclusion. He is honest in that way.
However, he is also wrong.
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romath
February 11, 2010 11:33 AM
Well yes, in their development capitalist societies typically collectivize certain basic functions along the way: military, police, education, public health, road systems and some transportation, parks and such, etc. Going beyond that to specifically social functions, such as old age pensions and welfare, i.e., pay outside of productive labor, has always been a major bone of contention in America, and opposed by a large section of capitalists. It was primarily extensive labor "unrest" and fear of communism - the Russian Revolution example and rapid growth of the American Communist Party - that pushed the FDR-led wing to enact Social Security and such during the Depression. Nonetheless, the anti-social measure wing hasn't given up. And they are not just Ayn Rand types, but many mainstream conservative corporate and political leaders, as well as four consistent votes currently on the Supreme Court.
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grenadine
February 11, 2010 11:35 AM
So, if I have "personal" Social Security, that's different....how?
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BrookJolley
February 11, 2010 8:29 PM in reply to grenadine
The money goes into the market where it can be stolen by people that contribute to the Republicans running for office, where as now its hard for them to steal it.
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blkblt
February 11, 2010 9:12 PM in reply to BrookJolley
A perfect description of the plan
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bluestatedon
February 11, 2010 11:35 AM
Hey Lalo, if Josh is such a pathetic passive-aggressive tool, why do you come here day after day?
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jeffgee
February 11, 2010 12:33 PM in reply to bluestatedon
He likes to irritate "libs", which sounds passive-aggressive to me.
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chuck DC
February 11, 2010 3:28 PM in reply to bluestatedon
someone has to think for him, can't do it himself apparently....
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Andreams
February 11, 2010 11:36 AM
I don't want to be "empowered", but thanks anyway.
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AhTrini1
February 11, 2010 11:37 AM
Where is Tim Kaine and the DNC hammering this 24/7 on cable news?
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ChrisB
February 11, 2010 11:39 AM
I wonder if he's a conservative christian like so many republicans are. It would be ironic in the extreme if someone advocated an objectivist philosophy while simultaneously claiming to be a christian, since the two are pretty much diametrically opposed. In Objectivism, your only moral guide is the self; greed is a virtue. In Christianity, it's how you help others, even at the expense of yourself (or at least it's supposed to be, see Matthew 25). Amazing how many conservative christians don't see any contradiction between what Jesus said and the underpinnings of capitalism (greed will save us).
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Powkat
February 11, 2010 11:45 AM in reply to ChrisB
When did inconsistancy ever stop a Republican?
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Bass Ace
February 11, 2010 12:48 PM in reply to ChrisB
Rand was a strident atheist who believed not only that abortion was a woman's right but a duty, if she could not support a child. If the teabaggers ever figured out what Rand really believed, their heads would explode.
There is nothing in Rand's writings which is compatible with the teachings of Jesus of Nazareth.
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Cliff Hendroval
February 11, 2010 3:24 PM in reply to Bass Ace
Read the Amazon reader reviews of Atlas Shrugged - half of the "it changed my life" ones are from self-described "Christians".
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ohiomeister
February 11, 2010 6:28 PM in reply to Cliff Hendroval
The right-wing Christians have that new stupid money gospel BS where Jesus wants you to be rich or whatever.
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mrdufus2u
February 11, 2010 3:26 PM in reply to ChrisB
Being "Christian" and following Jesus are two very different things in the US.
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windowpane
February 11, 2010 5:03 PM in reply to ChrisB
Dear Friend,
I think you are referring to the old brand of Christianity, the one that was phased out in the early 1980s during the Reagan Revolution. Haven't you heard the good news? Prosperity and wealth are glorious! - Deng Xiaoping and Joel Osteen
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The Captain
February 11, 2010 7:50 PM in reply to ChrisB
It's one of my favorite contradictions I find all the time. That it's those that do not believe in evolution, and yet want to practice a social darwinistic economic system.
One thing I've noticed is that for many christians in the US they have two saviors. Jesus Christ, and Adam Smith, and when the two come into conflict they always follow that latter.
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Given Up
February 11, 2010 9:32 PM in reply to The Captain
even Adam Smith thought there are things that the free market cannot take care of, don't malign him too badly. The loons these days would probably call him a liberal....
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Noam Sane
February 11, 2010 11:39 AM
Also, we should follow the yellow brick road and get that wizard guy to help us out.
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JohnW1141
February 11, 2010 11:41 AM
Isn't a for-profit insurance company also a "collectivist system"?
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Fried Chicken Lover
February 11, 2010 1:27 PM in reply to JohnW1141
Yup. Technically the concept of insurance itself is "socialist" in a way, in that the whole point is dispersal of large costs among a pool.
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howard479
February 12, 2010 2:10 PM in reply to Fried Chicken Lover
but insurance is voluntary socialism. not a the point of gun "my way or the highway" attitude.
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Fried Chicken Lover
February 12, 2010 7:13 PM in reply to howard479
I'm all for voluntary socialism. I'd much prefer it.
That said, the insurance "industry" as it currently exists in the U.S. is nothing to support. I completely understand why the mainstream Left balked when the government* option was removed from health care legislation while the mandate remained.
(* - Government is not synonymous with the public, as government officials are detached from what virtually anything they do means. Something along the kind of principles behind this would be a true public option.)
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Fried Chicken Lover
February 12, 2010 7:16 PM in reply to Fried Chicken Lover
Either the tag was messed up, or the link got filtered. It was supposed to link to this: http://blog.p2pfoundation.net/open-source-healthcare/2009/03/31
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bluestatedon
February 11, 2010 11:41 AM
"or do you want to get back to being a free market?"
Kudos to Ryan. It's rare you see a Republican who is dead-set against all agricultural subsidies and tax abatements for corporations given out by states in hopes of attracting business.
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Powkat
February 11, 2010 11:43 AM
Okay - explains a lot. Rand devotees who haven't outgrown this by the time they graduate from college are usually fanatics.
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glblank
February 11, 2010 11:44 AM
I wouldn't worry too much, Ryan is a lapdog who wont start really start barking until leadership allows him, they know if Ryan sets the bar Obama could beat `em with it. If I were Obama, I'd invite Ryan to the podium on television and watch him slink away or step up and paint the GOP in a corner. Paul Ryan, the gift that keeps on giving.
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madmatt
February 11, 2010 11:45 AM
Anybody who uses "the free market" in any comments should be banned from public speaking...he might as well just say "In Narnia they do it like this" BOTH ARE FICTIONAL
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whachawant
February 11, 2010 11:55 AM
Ryan is Catholic. His father died when he was young and his mother actually survived on the entitlements he seeks to privatize.
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connski
February 11, 2010 12:03 PM
Let's get something straight. Ryan says laborers can be capitalists. Capitalism means that the owners of the system of production make a profit which is the difference between the cost of goods and their price. Labor is a commodity, that is, part of the cost of goods. Laborers don't make a profit, they make wages, therefore they can't be capitalists. "Disposable income" doesn't count. The simple fact that the MIDDLE CLASS is in a credit crisis, using credit cards, houses as "atms" etc. to pay for their lifestyles and expenses is the obvious proof that even they are not "capitalists". They are not producing by their labor even enough to put into savings accounts.
It's time to shoot down - no, to figuratively NUKE Ryan's false and dangerous lie which is selling a PHONY FANTASY to the American people.
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Jaycal
February 11, 2010 1:11 PM in reply to connski
This is like a Monty Python skit, "Capitalists have been declaring bankruptcy, laborers need to declare bankruptcy, therefore, laborers are capitalists." I think the only difference is the laborers go out on the street and the capitalists go on a vacation.
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midnight rambler
February 11, 2010 1:17 PM in reply to connski
Hmm, so let me get this straight:
* Capitalists are the owners of means of production
* Under Ryan's model, all workers are capitalists
* Under Marxism, the workers own the means of production
So, by logic, Ryan is promoting Marxism! Sic the teabaggers on him!
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big jonny
February 11, 2010 1:24 PM in reply to connski
I concur.
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mrdufus2u
February 11, 2010 3:34 PM in reply to connski
You can demolish the economics of Ryan's "plan" all you want, it's beside the point. I don't think he really believes what he says, but he believes that the GOP can win a majority if they can sell enough voters on the fantasy that everyone can be a "capitalist" or "entrepeneur" simply by exiting the govt. support system. As for the GOP leadership, they are using Ryan as what Colin Powell called a "wind dummy" (a human-size dummy thrown from a plane with a parachute so that the live paratroopers can observe how the winds are blowing).
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connski
February 11, 2010 5:15 PM in reply to mrdufus2u
wind dummy: dunce who blows hot air.
i agree with your analysis. the GOP talking point is that capitalism = democracy. BS of course.
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blkblt
February 11, 2010 9:21 PM in reply to connski
He's saying that the workers can own shares of the companies they work for and put them in their retirement portfolios. So the workers own the means of production. Sounds a lot like communism to me. And remember how well that worked out for the Enron employees? As the CEO was telling them to put all their retirement money in company stock, the Fraud was unraveling right before his eyes. Sounds like a great plan to me.
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MarkusR
February 11, 2010 12:08 PM
The vouchers are paid for with pixie dust and leprechaun gold. I swear he forgot to mention that in the NPR interview I heard.
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Kid Zemo
February 11, 2010 12:19 PM
um, does this mean he's leaving us to suffer without him? Paul! Come back Paul!
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whachawant
February 11, 2010 12:20 PM
I have said this before on other threads...SE Wisconsin can't take many more years of Paul Ryan. He has this district sewn up so tight we'll never be rid of him. He sells his fiction with just enough style to keep him at 64% of the vote.
His ideas must be exposed as radical and destructive. I am begging TPM and others to not let this drop.
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Bass Ace
February 11, 2010 12:42 PM
Ayn Rand was a sociopath, who saw empathy as a sickness. She enshrined her mental disorder in her writing, just as the Marquis DeSade did in his.
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lousgirl84
February 11, 2010 4:00 PM in reply to Bass Ace
Was she even a woman. The pictures I have seen of her make it almost impossible to tell for sure.
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Jack of All Tirades
February 11, 2010 1:32 PM
I want to see a public debate between him and say, Barney Frank. The Washington Post actually published a great chart that shows U.S. Govt. outlays (http://tinyurl.com/ydebvjg). It seems to me that defense is our biggest outlay. How much would Ryan cut it?
When people pull out their Social Security funds, where's he going to get the 2 trillion dollar infusion of cash to cover the benefits for those still on Social Security?
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nomoregwb
February 11, 2010 1:49 PM
If you take Ayn Rand out of the equation, what the congressman wants is for us to believe that capitalists have the answer to all of our problems. If that is so, then why do capitalists seem to be at the root of the financial problems that plague us? Why do manufacturers seem to have taken the manufacturing might of the country to off shore locations causing problems with their not paying their fair share of taxes and finding ways to keep their business stable with fewer employees in this country. Hmmm, lower taxes and fewer employees to pay taxes to support the parts of government that need support to survive. Seems that the conservatives have found the way to "drown the budget in the bathtub" after all.
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twirling fartknocker
February 11, 2010 2:27 PM
these republican assholes against "collectivism" do so based on 1950s and 60s anti-desegregation racism, or even older robber-baron fantasies. what they don't get is that a return to a more dog-eat-dog world won't necessarily favor them as America's demographics become decidedly less white bread. the poor would eat them for lunch and their time will be permanently over. punks that they are they will be the first ones crying for special protection as their world evaporates before their eyes
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pstamler
February 11, 2010 2:28 PM
Romath said:
>
Actually, while there was plenty of unrest among labor (and farmers), and the Communist Party had a bit of a following in a few large cities, the immediate spur to FDR's proposal for Social Security was a thing called the Townsend Plan, advocated by a broad spectrum of Middle Americans led by a physician named Francis Townsend. The plan was essentially an old-age pension funded by a national sales tax, and was intended to end the Depression by stimulating spending, primarily by the elderly pension recipients. It became extremely popular (Townsend Clubs in all 48 states) and seemed like it could pose an electoral threat to Roosevelt, who countered in 1935 with what became Social Security.
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pstamler
February 11, 2010 2:31 PM
Hmm, the quote from Romath didn't come through. Here it is again:
"It was primarily extensive labor 'unrest' and fear of communism - the Russian Revolution example and rapid growth of the American Communist Party - that pushed the FDR-led wing to enact Social Security and such during the Depression."
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M.L.H.
February 11, 2010 2:36 PM
If I may paraphrase Andy's Samberg's impression of Rahm Emanuel:
"You still quote Ayn Rand? What are you, fourteen?"
I voted Libertarian back in 1976. As I like to say, I thought I was a libertarian until I met some of them.
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hologram5
February 11, 2010 2:43 PM
This d0chebag needs thrown out of office onto his ass. He needs a thorough beating. Maybe we should tie him up and let the senior citizens he plans on starving to death have him. They'll beat his ass quite nicely.
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ericf
February 11, 2010 2:47 PM
Sometimes, I wonder if Ayn Rand is teabagging for literate people.
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Jack of All Tirades
February 11, 2010 3:59 PM in reply to ericf
Dude, have you ever seen Ayn Rand? Thanks for the visual.
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Max Thrax
February 11, 2010 2:52 PM
Objectivism has been thoroughly discredited by now, any educated person. If you ever find yourself in an argument with some Libertarian just point them to Alan Greenspan, a friend and acolyte of Rand, and his testimony before Congress after the financial implosion.
What a godawful book, it's incredibly childish....secret hideaways in the Rockies, makes me laugh just to think about it. It's slightly less bad than Battlefield Earth.
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Max Thrax
February 11, 2010 2:53 PM in reply to Max Thrax
Seriously, edit function would be great.
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twirling fartknocker
February 11, 2010 3:01 PM in reply to Max Thrax
there is "preview"
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VictorLH
February 11, 2010 3:06 PM
Yet another follower of the prophet of self centered selfishness and the All against All.
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Max Thrax
February 11, 2010 3:17 PM
A nice takedown:
'"Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself especially, are in a state of shocked disbelief."
Early in his career, Alan was an avid Rand acolyte, a frequent guest at the Manhattan salon of the novelist and philosopher...Today, 40 years after the heyday of those gatherings, Greenspan surprised many with his "Yes, I found a flaw" response to a grilling from the Committee. Responding to the clear failure of the notion of "enlightened self-interest" to stop the cascade of financial catastrophies that have roiled world markets, he said, "That is precisely the reason I was shocked, because I’d been going for 40 years or more with very considerable evidence that it was working exceptionally well.'
http://www.wowowow.com/post/greenspan-shrugged-did-ayn-rand-cause-our-financial-crisis-128286
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c99
February 11, 2010 3:28 PM
Greenspan actually betrayed the ideas set forth by Ayn Rand. The Federal Reserve, who Greenspan worked for, is largely and directly responsible for our financial problems, NOT the free market.
The marriage of government (which monopolizes force) and any entity, especially businesses (banks) is something we all have to be vigilant against.
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Max Thrax
February 11, 2010 3:35 PM in reply to c99
Actually it isn't, and if it was, you'd be able to illustrate why it is here. Our financial problems were caused by reduced revenue in conjunction with increased spending, a conservative fiscal practice, combined with lax regulation of banks.
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c99
February 11, 2010 3:43 PM in reply to Max Thrax
If banks had to answer for their bad investments, they'd be less likely to make them. I tend to believe that fractional reserve banking wouldn't prosper under true free market capitalism (or at least be severely constrained).
When you have an entity such as The Fed, it creates a severe moral hazard. Did greed play a part in this? Of course. Is it the greed that Rand spoke of? No. Greed, while forcing others to subsidize your loss, is not something that Rand supported and nor SHOULD have Greenspan. It is not rational self interest, and it is not capitalism. It's corruption, and it's supposed to be illegal.
We have a mixed system where this quasi-public, quasi-private, answerable-to-no-one cabal of bankers has a stranglehold on our money. The boom bust cycle is the direct result of monkeying with interest rates by the fed. Austrian economists saw this housing meltdown coming in the early 2000s, after Greenspan/Bush blew money into it as a reaction to the dot com meltdown (another FED caused boom/bust).
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Max Thrax
February 11, 2010 3:51 PM in reply to c99
Oh, so it was the wrong kind of greed. Yeah, that makes sense. The boom bus cycle is a feature of laissez faire economics.
Go back to the Rockies.
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c99
February 11, 2010 4:00 PM in reply to Max Thrax
"Rational Self Interest", as Rand described, is not simply plowing over everyone and everything that gets in your way to reach your goals. I have the right to make my own money, but don't have the right to steal money from others. It's really that simple.
You assert that that boom/bust cycle is the result of laissez-faire economics, but make no real argument. I don't really agree with everything that Rand was about, but Austrian economics is something that I firmly believe in. The problem is, Democrats and many if not most Republicans are Keynesians. As you stated earlier, Republicans love to spend (as much as Democrats). The problem is less about party and more about ideology. The Federal Reserve is an enabler- those that benefit most from the creation of new money are the Politicians and Bankers themselves, and everyone else loses. It's a completely corrupt system, and it is NOT capitalism.
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Max Thrax
February 11, 2010 4:24 PM in reply to c99
"As you stated earlier, Republicans love to spend (as much as Democrats)"
Actually, Republicans like to spend more than Dems. What's worse, they spend more AND reduce revenue, which is prima facie an unsustainable policy. The last fiscally responsible Republican was Ike.
Let's review: The economic crises was caused by the lack of adherence to Rand's principles, except for the principles you don't agree with? Logical pretzels. BTW, 'Trickle Down Economics' is the foundation of the Republican Party and it has destroyed demand(the real problem) and created huge discrepancies between the financial elites and the average American.
I know it's tough having your economic philosophy proven wrong in such disasterous way....but it is what it is, it's time to grow up.
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c99
February 11, 2010 4:43 PM in reply to Max Thrax
Heh, you've done nothing to "prove me wrong," you've just spouted the same tired old platitudes that I see over and over again. Not sure why you're being so hostile.
I didn't say not adhering to Rand caused the financial crisis, I said The Federal Reserve did. The huge discrepancies you speak of are a direct result- as I said before- of the Federal Reserve's involvement in monetary policy. Inflation is a boon to bankers, as well as politicians (all of them, both GOP and Dem), but hurts the little guy in the end. The gulf is growing between rich and poor, but not because of the reasons you think. It's not the "failure" of trickle-down economics or even the failure of Bush, Obama, or Clinton's economics. It's because of a flawed and corrupt monetary policy.
What we are seeing is the beginning of the end of our fiat dollar reserve system. Austrian economists knew, in 1944, when Bretton Woods was established, that it wouldn't last, and many also knew that our current system, established in 1971, would also eventually fail. It's all very predictable. In 2001, the Fed tried to delay recession with low interest rates, and Greenspan slashed federal funds from 6.5% in January of that year to just *1%* by June of 2003. He held this rate for a full year before increasing rates back to 5.25 in June of 2006, popping the bubble. This manipulation, this corruption- is the problem. Greenspan is not and was never an actual capitalist.
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Max Thrax
February 11, 2010 5:10 PM in reply to c99
No. The cause is spending more than you have. When you do, you are forced to borrow. Things broke down vis-a-vis gold standard in 1971 because this country decided to enter into a pointless and ruinous war in South East Asia and the French wanted to convert their dollars to gold. Who knows what would have happened if we had used those fiat dollars and the purchasing value they represented into improving productivity in the US, something of REAL VALUE, as opposed to spending decades taking those fiat dollars and blowing them up in the sand.
I know it's hard, but you are going to have to face the reality that the philosophy you've clung to all these years was a brick, not a life preserver.
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c99
February 11, 2010 5:32 PM in reply to Max Thrax
America's foreign policy has been horrible for decades and very expensive- that much I think we can agree on. And yes, deficit spending is never a good thing. Unfortunately, Obama has followed Bush in that regard. But it's not just that we're forced to borrow. When the printing presses are available to the government and the banking elites, they will ALWAYS use them rather than do the right thing. The problem isn't that that Greenspan just "made the wrong choices" (even though he did). The REAL problem is that he he had a vehicle to make those wrong choices which shouldn't exist in the first place. And now, Bernanke, appointed by Bush, supported by Obama, and now re-appointed recently, continues to steer the ship into the rocks. Take a look at this video:
http://www.youtube.com/watch?v=HQ79Pt2GNJo
It shows Bernanke in 2005 being questioned about whether or not he though there could be a housing bubble, to which he more or less replies, "No way." Either the man is disingenuous, or an idiot. There were plenty of people who saw this mess coming.
You're getting tripped up by a Keynesian idea that only government can somehow improve productivity, and it's proper moral function is to re-allocate wealth. Wealth is created by innovation and work- everyday people like you and I. Government can't create wealth, it can only confiscate and redistribute. Money only represents wealth, but when government controls monetary policy, it actually stifles REAL growth; all that's left is a phony economy that has now been unraveling for about two years.
There's no REAL reason why my home should go up in value 20%, 30%, or more in one year. Barring me making some dramatic improvements, it's just a giant rotting box that needs constant repairs. Sure, some of it was speculation, but most of it comes from the easy money policy by the FED, coupled with the moral hazard of government backing up all of these loans. What we need is real money, not paper. The central bank has been extremely destructive for this country.
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ohiomeister
February 11, 2010 6:43 PM in reply to c99
Banks did have to "to answer for their bad investments." See Lehman Brothers and Bear Stearns.
I think that's game, but I'll add some other patently ridiculous stmts.
You also certainly didn't need to be an Austrian to see the housing bubble. Krugman called it, and he's about as far from the Austrian school as you can get.
Let's see, what else? Oh, "true free market capitalism" is an oxymoron like "true marxism", as is "rational self interest" when we know humans are deeply irrational.
Republicans are not Keynesians. They are calling for spending cuts in a deep recession for goodness sake! That's just silly to say, esp. when you yourself go on to say that "deficit spending is never a good thing."
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c99
February 11, 2010 7:26 PM in reply to ohiomeister
ohiomeister-
Lehman Brothers and Bear Stearns deserved to fail, as did AIG, or any insolvent entity. Why couldn't AIG fail but Lehman Brothers could?
I say "true free market capitalism" because we have nothing of the sort in America, and people are quick to place blame solely on Capitalism for all of the financial problems. We have a mixed economy with a lot of corruption, and the problems we do have are due to the opposite end of the spectrum: collectivist ideas like central banking. If you want to attack Capitalism on a grounding that man is "irrational", fine, but you must then paradoxically also denounce all government action. Government is far more prone to corruption and mismanagement due to "irrationality" than any business, corporation, or individual, simply because they monopolize force.
Republicans are not Keynesians? Were you asleep during George W. Bush's tenure? No child left behind? Medicare expansion? The man ran up more debt and spent more money than any president before him, backed up with a Republican Congress for many of those years. Republicans have no ground to stand on because when they're in power, they're corrupt and fiscally irresponsible. It's easy for them to talk about spending cuts now because they have no power. Rest assured, in 2010 when they make gains in the House and Senate (and they will), they'll be back up to their old tricks, spending money they don't have with the rest of them.
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ohiomeister
February 11, 2010 7:56 PM in reply to c99
You said, "If banks had to answer for their bad investments, they'd be less likely to make them."
Not true, as even Greenspan acknowledged at his Senate hearing. They did have to answer for their bad investments, and they failed. They weren't less likely to make them -- they actually did make them.
This is not an example of a paradox:
"If you want to attack Capitalism on a grounding that man is "irrational", fine, but you must then paradoxically also denounce all government action.
What you call "true free market capitalism" would be anarchy and slavery, and even Adam Smith did not call for it and believed markets needed to be regulated. The rational actor view of economics is ridiculous b/c people are irrational.
The fiscally irresponsible things GWB did are simply not examples of Keynesian economics. He wasn't trying to stimulate the economy to stave off a depression. I do agree with you that the GOP will do the same things again if they win.
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c99
February 11, 2010 8:29 PM in reply to ohiomeister
"They weren't less likely to make them -- they actually did make them."
I'm referring specifically to monetary policy, and like I said before, what about AIG? What makes them exempt from the rules? I mentioned in an earlier post that I have serious doubts about whether our fractional reserve banking system would last for any substantial amount of time without The Federal Reserve. I doubt we'll ever know, because for the time being the Fed is here to stay.
"What you call 'true free market capitalism' would be anarchy and slavery, and even Adam Smith did not call for it and believed markets needed to be regulated. The rational actor view of economics is ridiculous b/c people are irrational."
Anarchy and Fascism actually intersect on the spectrum. They are both systems where rule of force is determined by those with the biggest fists/guns. Both are diametrically opposed to Capitalism, and both are not desirable. The proper, moral role of government is to protect individual rights. Capitalism is not pummeling over everyone and everything in order to further one's on greedy interests. If you defraud someone, it's a crime and you need to punished. That's what the government's job is supposed to be. Capitalism isn't "no regulation", it's regulation that protects individual rights.
You also make the claim that people are somehow inherently irrational, which I disagree with, but perhaps that discussion is for another time.
"The fiscally irresponsible things GWB did are simply not examples of Keynesian economics. He wasn't trying to stimulate the economy to stave off a depression."
Really? I've already detailed some of the crap that Greenspan did to stave off recession after the dot com burst under Bush's rule. Easy government money in education lending is aimed to help stimulate the economy; the premise of course is that higher educated individuals will be more productive. Noble? Yes. Flawed? Also yes- as a side effect, tuition rates have gotten ridiculous. I experienced this first-hand while going to college. It's a simple cause and effect.
Don't forget that TARP passed under Bush. If that isn't Keynesian, I'm not sure what is. Not only was it passed, it was PUSHED by him.
Also, I strongly believe that the war in Iraq was a diversion of sorts to move focus away from the flailing U.S. economy. After all, war is big bucks- lots of jobs, government contracts, etc. I'm not saying that it's the only reason we went to Iraq- there's many flawed reasons we did, but that's destructive Keynesian policies in action.
Bush was a horrid president, but it's amazing how similar Obama is and people are still trying to say that the parties are somehow fundamentally different. Maybe the Republican party once stood for small government, but not anymore.
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Max Thrax
February 11, 2010 7:20 PM in reply to c99
'When the printing presses are available to the government and the banking elites, they will ALWAYS use them rather than do the right thing."
In ancient Rome, where they had no Fed or paper money, they started mixing copper into the gold coinage.....there's always a way for governments to do this.
'Money only represents wealth, but when government controls monetary policy, it actually stifles REAL growth; all that's left is a phony economy that has now been unraveling for about two years.'
Actually we've had phony economy for decades now because instead of dealing with the fallout from the Vietnam War, Reagan/Bush told us it was 'morning in America' and a 30 year parade unfolded in which anyone claiming the US had problems was branded an America hating hippie. This, and the idea of the infallible market, was the ruling conventional wisdom of the era and all the economic development during this era was driven by false demand.
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c99
February 11, 2010 7:39 PM in reply to Max Thrax
It's wrong for the government to print fiat money, just as it would be wrong for a government to mix copper in with gold coinage. Wrong is wrong.
I meant that the phony economy has been unraveling for the past two years, not that it has only been fake for that long. Of course it's been fake for decades.
The market isn't infallible- I never claimed it was. There are problems, there are bumps in the road, and the best thing that the government can do is punish fraud and enforce contracts. My point earlier was that we don't actually have a free market in the first place!
Max, I actually share a lot of your concerns, I just think that you're placing blame on the wrong entities and ideas. And it's not even a Republican/Democrat thing anymore because they're both equally culpable (I parted with the Republican party many years ago). In any case, good discussion and take care.
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Hugh.G.Wreckshun
February 11, 2010 8:23 PM in reply to c99
Can you at least point to a single system of laissez-faire capitalism that works? Because if you want to engage in commerce without a strong central government looking over your shoulder then I can recommend that you go quickly to Somalia or any other number of Third World sh!tholes where you can live truly free.
The boom/bust cycle is NOT a direct result of the actions of the FED - the Fed and the entire system of financial regulation was instituted in order to break the ruinous cycles of boom and bust that characterized American economics up to and including the Great Depression. For the sake of this particular post I could concede that the Fed made some poor decisions that contributed to the financial crisis but most of those decisions appear to sins of omission where they steadfastly refused to allow any oversight or regulation of the CDO or CDS markets which actually and directly caused this financial crisis.
And government does a tremendous amount to create wealth by creating the infrastructure upon which your vaunted capitalism can thrive. Wealth cannot be created by or for people that are struggling to meet the most basic demands of food, water and shelter. We are not a First World nation because we were founded on glorious principles by powdered-wig-wearing white men - we are a First World nation because the vast majority of us has access to clean drinking water, safe food and virtually free transportation to move to where things might be better for us. All brought to you by your friendly neighborhood federal government. And this argument is neglecting the direct investments by the federal government that have brought you the entire post WWII industrial infrastructure, semiconductor, the internet, and the vast majority of medical breakthroughs. But I guess none of those things ever made money for anybody.
Look, you seem like a smart fellow and it is good to know that you have read at least one book in your life but you need to join the world as it exists. The Fed may or may not be a bad idea - I certainly disagree with many of its decisions - but it did not cause this recent catastrophe. Unregulated bankers caused it and they will do it again if left to their own devices. They always have and they always will.
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c99
February 11, 2010 8:49 PM in reply to Hugh.G.Wreckshun
These posts are getting harder and harder to read, so I'll try to be brief.
"Can you at least point to a single system of laissez-faire capitalism that works?"
Can you point to one instance of socialism that works or is self-sustaining? Somalia isn't an example of capitalism, it's more akin to anarchy than anything. There's no protection of individual rights.
"the Fed and the entire system of financial regulation was instituted in order to break the ruinous cycles of boom and bust that characterized American economics up to and including the Great Depression."
I'm familiar with the idea that the Fed was created under the guise of "stopping the boom and bust cycle." But it was created BEFORE the Great Depression, in 1913. How many boom and busts have there been since then? If that was the goal of the Federal Reserve, than it has failed miserably.
The Fed is a banking cabal that used government to quash upstart banking competition. Nothing more. Every call for "public interest" hides what it truly is. I agree that credit default swaps are a huge problem, but again, I question if they would even be an issue if weren't for fractional reserve banking, which is propped up by the FED.
"We are not a First World nation because we were founded on glorious principles by powdered-wig-wearing white men - we are a First World nation because the vast majority of us has access to clean drinking water, safe food and virtually free transportation to move to where things might be better for us."
You are both right and wrong here. It was the principles of the founders that allowed things we take for granted like clean drinking water and safe food to come about. These things aren't granted to us magically by an all knowing powerful federal government.
I have some serious issues with what FDR did, and there is plenty to discuss there. I tend to belong to the group that thinks he actually prolonged the depression rather than get us out of it.
There are some things that government is potentially better at- I will agree with infrastructure/roads. But the rest of it- *including money* should be out of it's hands.
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Max Thrax
February 11, 2010 9:15 PM in reply to c99
Government can't create wealth. It can however lay down a foundation for wealth to be created. The Internet is a great example of the government laying down a foundation that was later built upon by the wealth creators. The interstate highway system before it pretty much the same thing. We've spent our fiat currency POORLY. We've essentially taken 100s of billions of dollars and burnt them up in the middle of the desert, before that we burnt 100 of billions in the jungles of South East Asia. We could have spent that fiat currency on our infrastructure and increased efficiency and productivity in our systems. As it is now, our infrastructure is in tatters. Military power is fleeting, the purchasing power of the fiat currency used to pay for these misguided adventures is long gone and we'll never know what kind of productivity gains we may have made had we spent it on infrastructure. We might have even been able to stay competitive in a global economy, but we're the Beverly Hillbillies of the Western world now.
Ayn Rand is the patron saint of the American CEO. The acolytes of Ayn Rand were front and center, cheerleading the rank idiocy that led to what happened in this country. What moderately intelligent person couldn't see that un-linking the relationship between a lending institution and the lendee would end in disaster? People who believe in economic dogma...that's who.
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c99
February 11, 2010 9:25 PM in reply to Max Thrax
"The acolytes of Ayn Rand were front and center, cheerleading the rank idiocy that led to what happened in this country."
No. The ones cheer-leading this were people like Krugman.
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Max Thrax
February 11, 2010 9:44 PM in reply to c99
You've now reached the point of lunacy.
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c99
February 11, 2010 9:48 PM in reply to Max Thrax
Krugman knew that there would be a bubble and still encouraged lowering interest rates.
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Max Thrax
February 11, 2010 10:08 PM in reply to c99
The problems was the repeal of Glass Steagal, not interest rates. The problem is the dogmatic belief that markets correct themselves, and the wanton idiocy that followed vis-a-vis CDOs and credit default swaps. Randians cheerleaded the decoupling of the mortgage lending institutions and the consequences of making those loans.
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MrSmith1
February 11, 2010 3:35 PM
If they truly believed this ayn rand crap, the first thing the Repubs should do is send back all their parent's and grandparent's social security and medicare payments as a matter of principle.
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Randy
February 11, 2010 3:46 PM
More like Milo Minderbinder.
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lousgirl84
February 11, 2010 3:57 PM
This guy has to be the great great grandson of Josef Mengele. Has to be.
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Matt Jones
February 11, 2010 4:00 PM
Source unknown, but it's relevant to this discussion...
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Given Up
February 11, 2010 9:47 PM in reply to Matt Jones
epic win
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Jack of All Tirades
February 11, 2010 4:08 PM
In 1932 we had pretty much unfettered capitalism. Hoover wouldn't lift a finger to help starving Americans. How'd that work out for us? A lot of citizens were declared 4F for the military due to malnutrition and starvation they went through in the early 30s.
I want the Yes Men to put on a press conference and have them embrace everything Hoover and Rand supported. Let's see if Ryan then says.
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czony
February 11, 2010 4:26 PM
Basing your life’s philosophy on a work of fiction seems a bit silly….
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c99
February 11, 2010 5:01 PM in reply to czony
The Bible?
Sorry, bad taste I know, but I couldn't resist.
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Bass Ace
February 11, 2010 4:33 PM
Is this Paul's father?
http://www.youtube.com/watch?v=qbI7gxxbYpo
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windowpane
February 11, 2010 5:13 PM
I suppose we should give Ryan credit for doing something very un-GOoPer-like; thinking.
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dougom
February 11, 2010 6:02 PM
So much for "promote the general welfare," I suppose. Why are Republicans always so focused on the "provide for the common defense" portion of the Preamble, rather than any of the other parts? (I don't know about anyone else, but I find it hard to "pursue happiness" if I don't have enough money to pay the mortgage or pay the doctor.)
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Silence
February 12, 2010 8:04 AM in reply to dougom
Here's a little slice of wisdom for you.
Don't buy things you can't afford. Budump!!!
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Silence
February 11, 2010 8:42 PM
"Despite a show of Franco-German unity on the crisis and the first statement from EU leaders pledging to safeguard the currency's stability, hopes on the markets of a German-led rescue plan to shore up Greece's critical public finances were dashed by Merkel, who repeatedly emphasised that Athens would need to put its own house in order and brushed aside all questions of financial support.
"Germany is stepping totally on the brakes on financial assistance," said a senior EU diplomat. "On legal grounds, on constitutional grounds and on principle." Another senior diplomat said of the Germans: "They're not waving their chequebooks."
An EU summit of 27 government chiefs in Brussels was the first opportunity to tackle the Greek crisis and also send a strong message to the financial markets, which have been betting against the euro for the last week.
Following talks between the Greek prime minister, George Papandreou, Merkel, President Nicolas Sarkozy of France, and Jose Manuel Barroso and Herman Van Rompuy, the European commission and European council presidents, the leaders issued a statement aimed at restoring calm and voicing political support for Papandreou's programme of swingeing budget cuts and structural reforms."
http://www.guardian.co.uk/theguardian/2010/feb/11/germany-greece-merkel-bailout-euro
----------------------------------------------------------------
The ghost of Christmas Yet to Come?
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Duck Stab
February 11, 2010 9:13 PM in reply to Silence
Way to stay on topic, fake troll.
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Silence
February 11, 2010 10:21 PM in reply to Duck Stab
As opposed to a real troll?
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Max Thrax
February 11, 2010 9:16 PM
If I were going to base my life on a book, it would be Henry Miller's Sexus. Oh wait, I already did.
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Jackster
February 11, 2010 9:24 PM
One of Rand's most prominent supporters of recent historical events, Mr. Greenspan, publicly acknowledges he was wrong, and here comes one of the whitest white boys in WI to tout failed policies. This pretty boy is showing he has as much substance as Palin.
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blkblt
February 11, 2010 9:41 PM
Rand didn't think any of the workers would step up and take care of things when the masters of business disappeared. I know all of my coworkers would love a chance to take over my job, and they all think they could do it better. She was also very comfortable with the fact that all the peons would starve to death because the elite masters of the universe wanted to make a political point. In addition, she had no understanding of basic economics. In Atlas Shrugged she talks about a company who must raise their prices because they are selling less and less, so they have to make more money from each unit. Supply and demand anyone? Ayn Rand didn't know shit.
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Given Up
February 11, 2010 9:49 PM in reply to blkblt
since when has the carelessness of the source ever interfered with a wingers claims...
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rbe1
February 12, 2010 4:30 AM
Somehow it fits that an idiot like Ryan would base his economic fantasies on the ideas of a novelist.
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DownriverDem
February 12, 2010 10:48 AM
Okay. So what are all the Baby Boomers like me to do who have worked our whole adult lives only to see our 401Ks tank and now the threat of abolishing Social Security? How can any Repubs in the desperate economic times we are in even suggest such an idiotic idea? What are all of us suppose to do? Just die??????
I am so sick of these folks who think it's a good think to jerk us around on this issue every few years.
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Rebecca Coffey
February 27, 2010 2:36 PM
"Stand naked at the edge of a granite cliff. Laugh, letting no one know why." Then some pretty awful things start happening to a pig. Thus begins "Ayn Rand's Head Cheese" at http://adjix.com/xpui
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Citizen Kaye
March 1, 2010 12:09 AM
Rep. Paul Ryan is Ayn Rand's Judas. People who are familiar with the works of Ayn Rand would know that the TARP legislation (collectivist taxation to the rescue of free market risk) passed by Congress would be the antithesis of everything she felt capitalism for. TARP was the moment of truth for Rand ideologues like Paul Ryan, and he failed. He failed Rand so badly that she would not even forgive Ryan for his TARP position because in Rand's cold and heartless world, forgiveness doesn't exist.
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Tosh
March 12, 2010 6:34 AM
FTW
kamagra m65
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