New York Times

Again and again we see the same pattern, which stretches back to the original hiring of rural New England girls to operate the first spinning and weaving machines. The girls were delighted, for the most part, to leave behind rural drudgery. After a few decades, management began various cost-cutting measures that eventually became untenable. Labor activism spread rapidly and was countered, sometimes brutally. To avoid increased expenses associated with labor reform, the mill managers essentially would flush their working population and pull in a new one.

SINCE 1974, when the Justice Department sued to break up the Ma Bell phone monopoly, Americans have been told that competition in telecommunications would produce innovation, better service and lower prices.

What we’ve witnessed instead is low-quality service and prices that are higher than a truly competitive market would bring.

After a brief fling with competition, ownership has reconcentrated into a stodgy duopoly of Bell Twins — AT&T and Verizon. Now, thanks to new government rules, each in effect has become the leader of its own cartel.

So the austerity drive in Britain isn’t really about debt and deficits at all; it’s about using deficit panic as an excuse to dismantle social programs. And this is, of course, exactly the same thing that has been happening in America.

"The 401(k)," she concluded, "is a failed experiment. It is time to rethink it."

Keynes first found fame when he resigned in 1918 from the Allied team planning to impose crippling reparations upon the defeated Germans in the Treaty of Versailles. His ‘‘Economic Consequences of the Peace’’ was a masterpiece of invective that warned that deliberately impoverishing an advanced industrial country would encourage extreme political movements that might provoke a second world war.

"Historians have noted that American politics moves in long swings. We are at the end of the 30-year Reagan era, a period that has culminated in soaring income for the top 1 percent and crushing unemployment or income stagnation for much of the rest. The overarching challenge of the coming years is to restore prosperity and power for the 99 percent."

Our current plight sparks nostalgia for the Great Depression. Wonderful.

Six months after voters sent Republicans in large numbers to Congress and many statehouses, it is possible to see the full landscape of destruction that their policies would cause — much of which has already begun. If it was not clear before, it is obvious now that the party is fully engaged in a project to dismantle the foundations of the New Deal and the Great Society, and to liberate business and the rich from the inconveniences of oversight and taxes.

A trick question: If Congress takes no action in coming years, what will happen to the budget deficit?

It will shrink — and shrink a lot. This simple fact may offer the best hope for deficit reduction.

As federal law currently stands, some significant tax increases are set to take effect in coming years. The most important is the scheduled expiration of the Bush tax cuts at the end of 2012.

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