06/14/2002 Archived Entry: "The coming economic snap-back"

Reading Krugman's analysis Kevin Phillips's new book, "Wealth and Democracy," Plutocracy and Politics, alongside the WA Post's, Rove Urges 'War' for Permanent Repeal of Estate Tax, juxtaposes exactly what Phillips, according to Krugman is talking about:

How will this imbalance be resolved? The economists Claudia Goldin and Robert Margo have dubbed the narrowing of income gaps that took place under F.D.R. the "Great Compression"; if I read Mr. Phillips right, he thinks something like that will happen again. But he also offers a bleak alternative: "Either democracy must be renewed, with politics brought back to life, or wealth is likely to cement a new and less democratic regime — plutocracy by some other name."

The name that Rove is thinking of to replace plutocracy is War:

Rove said that agenda includes making last year's tax cut permanent, starting with the elimination of the inheritance tax, which Republicans call the "death tax." Under last year's law, the repeal of the tax expires in 2011. A bill to make the cut permanent failed in the Senate by six votes on Wednesday. "Don't look at it as a defeat," Rove said. "This is a war, and we need to make an ongoing commitment to winning the effort to repeal the death tax."

The enemies are terrorists and, yes, Democrats who balk at further tax cuts at a time when the budget is hemorrhaging red ink, USA Today 's Shapiro. We have to give Nader some credit as well (for this anyway). He went right into the conservative den, and told them what they stood for: ..."the thrust is, strengthen the oligarchy, and strengthen the concentration of power."

Replies: 2 comments

Rove is like Mark Hanna, his hero. This corporate over reaching pushed us into the progressive era from 1901-1917.
It may do so again.

Posted by TOM @ 06/18/2002 09:08 AM PST

Good point TOM. I'd like to read some more on this historical analysis, if you come across anything, let us know. One thing for sure, Rove is fixated on finding out any type of winning formula from the past.

Posted by myDD @ 06/19/2002 09:33 PM PST