The Media and the Decline of Democracy

Plato equated democracy with mob rule. Watching the media debase the level of political discourse by constantly shifting debate and discussion to the lowest possible level it is not hard to feel the United States has entered a state of terminal senescence. The country is facing some of the steepest challenges in its history – the ongoing threat of terrorism, the disastrous war in Iraq, a housing/credit meltdown that threatens the foundations of the financial system, and an energy/climate crisis that will almost certainly destabilize the planet – but commentators are harping on flag pins, comments made by Obama’s pastor, and Hillary’s gaffe about evading sniper fire. Rome is burning, but the clowns that run the media circus can still divert the masses.

The price of oil just hit a new time high ($115 dollars a barrel). Food costs are soaring. And the record trade deficit means America is maxed out; since 2000 we’ve been borrowing against the future simply to sustain a standard of living the country can no longer afford. The plummeting dollar is a symptom the U.S. is basically insolvent, but Tweedledee (George Stephanopolis) and Tweedledumb (Charles Gibson) still think it’s appropriate to ask candidates Clinton and Obama to make a pledge not to raise taxes on working Americans.

How inane can you get! The Bush administration’s laissez-faire economic policies have led to the largest transfers of wealth in world history as U.S. consumers are now in hock to some of the most unsavory and anti-democratic regimes on the planet (China, Venezuela, Saudi Arabia, and Russia), but the media mavens are trying to extract promises from politicians not to raise taxes on the middle class. What about the dwindling value of the dollar, interest to service America’s debt, and soaring energy/food prices are a stealth tax that Americans will be forced to pay because of the Bush administration’s imprudent policies? Americans are poorer for eight years of Bush’s borrow and spend economics, but they haven’t seen anything yet. The bill for the debacle in Iraq, which by some estimates will cost every American family $50,000, is only beginning to come due.

The credit crisis is just the tip of an iceberg that has capsized the American economy. Housing prices may decline a further 30 percent before things bottom out. This process may take several years, which means the days of homeowners using their homes as ATMs is over for the foreseeable future.

Against this dire economic backdrop John McCain has called for giving Americans a “tax holiday” on gasoline during the summer months. Meanwhile, Hillary Clinton promises to investigate oil company profiteering. Neither proposal addresses the inconvenient truth that surging world demand for oil, coupled with the declining dollar, and the increased nationalization of petroleum companies across the globe, have created the perfect storm whereby Americans will have to pay a greater share of their wealth to foreign oil producers. American oil companies have been steadily losing their market share -- a trend the Bush administration hoped to reverse with the invasion of Iraq – and recycled petro-profits are now filling the coffers of Sovereign Wealth Funds in Venezuela, Russia, and the Middle East. Ignominiously, failing and ailing financial firms, such as Citigroup, are now begging these SWF to rescue them.

President Bush’s mishandling of the economy may rival even his mismanagement of the Iraq War and Hurricane Katrina. It is now clear that the kind of deregulation and laissez-faire economics extolled by conservatives has brought the financial system to the brink of catastrophe. Free markets work, but only when there is some minimal government oversight. When the financial system is tasked with policing itself you inevitably get insider deals, mountains of bad debt that the taxpayers are expected to assume, and carnivorous CEOs carving up companies and feeding on the spoils, but leaving shareholders and laid off employees nothing but the remains. The CEOs at Bears Stearns and Countrywide did not create value so much as reallocate value, to themselves.

The next American president is going to have to institute measures that will restore credibility and integrity to the financial system, establish a new social compact with the American people (especially a minimum healthcare package), and reinvigorate America’s manufacturing capacity. Put simply, over the last several decades finance became the country’s growth industry as wizards on Wall Street found new ways to package debt, displace risk, and skim money from Main Street. Unfortunately, their financial alchemy did not create new wealth, so much as create the illusion of spectacular riches that would later vanish into thin air once they collected their conjuring fees.

The United States is roughly in the same position as the Spanish Empire under Phillip II. Attempts to plunder gold from the New World could no more keep Spain’s debt ridden empire afloat than the Bush administration’s efforts to establish U.S. hegemony over Iraq’s black gold. As the decline of the Spanish Empire shows, a country known primarily for manufacturing debt cannot thrive economically.

The presidential candidates need to articulate their economic philosophies and explain how they plan to revive America’s economic competitiveness. Unfortunately, the mainstream media would rather focus on trivial matters, such as Hillary’s sniper gaffe or comments made by Obama associates. This is not to say that such questions should not be asked at all, but rather that the media risks turning a presidential contest into a mud wrestling festival if it focuses on trite distractions instead of substantive issues. Needless to say, an army of right-wing pundits is mobilizing to ensure that a flap over flag pins, guilt by association, and other time-tested techniques designed to portray Obama as un-American, will trump the War in Iraq, the Bush recession, and eight years of an inept Republican administration.

The country is going to be in even bigger trouble if the right’s sophistry is able to deflect attention from the moral, economic, military, and strategic carnage conservative rule has wrought. It is positively chilling the way media bloviaters like Sean Hannity are able to manipulate and twist events, situations, and statements in ways that exploit the ignorance and a prejudices of an audience looking for objects upon which they can fixate their anger. Obama’s much maligned comments about small-town voters being “bitter” are right in this regard: if conservative commentators can succeed in making the 2008 election about god and guns they’ll almost certainly prevent the kind of debate the country needs to have to solve its problems.

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