ERRANT MYTHOLOGY

Myth: "A rising tide lifts all boats."
Fact: It sinks the ones with leaky bottoms.
Example: The housing bubble made many loan people
and real estate people rich, and some homeowners
and investors. But a million families (and maybe
several million) will lose their homes in foreclosure,
and face bankruptcy.

Myth: "It's a level playing field."
Fact: Only 6% of children from families at the very
bottom economically move to the very top. (That's
from the Economic Mobility Project, research led by
the Pew Charitable Trust.) In other words, only 6%
of the poorests' boats catch the tide. The rest remain
stranded on the mud flats. Hardly an egalitarian
situation, as suggested by the level playing field myth.
Explanation: Single-parent families forced off welfare
deprive kids of supervision and homework help
because mom works three minimum-wage jobs to pay
rent and utilities. Over half of these kids drop out of
school at some point. A high percentage of them fall
into crime and/or get pregnant and repeat the cycle.
We would rather spend our tax money on prisons
rather than helping when it can do some good!

Myth: "The market system is fair and self-correcting."
Fact: It is neither! Enron and World Com were
plundered by greedy execs that were encouraged to
make destructive decisions by a system of executive
compensation fueled by greed that rewarded fraud.
As Paul Krugman points out (NYT 11/23/07 "Banks
Gone Wild"), that system of executive compensation
should have been reformed after those scandals, but
wasn't. It has, in fact, led now to the sub prime crisis
and the loss of many billions of dollars by the largest
Wall Street and banking firms. Krugman writes:
"Around 25 years ago, American business -- and the
American political system -- bought into the idea that
greed is good. Executives are lavishly awarded if the
companies they run seem successful: last year the
chief executives of Merrill and Citigroup were paid $48
million and $25.6 million, respectively. But if the
success turns out to have been an illusion -- well, they
still get to keep the money. Heads they win, tails we
lose. Not only is this grossly unfair, it encourages bad
risk-taking, and sometimes fraud. If an executive can
create the appearance of success, even for a couple of
years, he will walk away immensely wealthy. Mean-
while, the subsequent revelation that appearances were
deceiving is someone else's problem."

Myth: "Afghanistan is a huge success."
Fact: It's going to hell in a hand basket: the Taliban is
not only back in force, it is now a permanent presence
in 54% of the country! And the rest is in real danger
of falling into its hands, according to The Guardian
(11/21/07). We have poured in more than $15 billion
in aid since 2001, but little of it gets to the people. Much,
if not most of it goes to war lords directly (we buy their
help), or they get their hands on it through graft,
corruption, and other criminal activities. Nato has
40,000 troops there, but at least double that are
needed. Of that 40,000, about 15,000 are ours.
We are losing the hearts and minds battle, as well as
the military one. It might help to understand the
culture, and the real nature and causes of Islamic
hostility to the West! So far, our leaders haven't a clue.