We must make the Texas Catastrophe the nail-in-the-coffin for post-Reagan failed economics. Economist Paul Krugman is not sure. I am! Why?
Post-Reagan failed economics must end
Conservative economic policies hurt the poor and middle-class as it transfers wealth to a few. The Texas Electric grid catastrophe is no different. And the path to wealth transfer under all scenarios was clear.
One need not argue about Post-Reagan failed economics. We are living it. The process is always similar. In this case:
- Texas completely deregulates its electric market. It remains mostly intrastate to avoid federal oversight and regulations to ensure reliability for customers.
- Texas allows an all-private system to run on market economics, the wild west where those with capital are really the masters of manipulation.
- Power generators do as little as possible to generate a megawatt ignoring the possibility that they could go down in bad weather or circumstances. This is very cheap and efficient as long as we are devoid of storms, accidents, fuel shortages, etc. Investments not made in reliability become somewhat cheaper electricity price, but windfall profits for shareholders and bonuses for executives.
- When failure occurs, the irresponsible deregulated system still has an upside for the shareholders and executives. How could that possibly be? Well, the prices for the shortage of electricity for lack of generation means the prices go through the roof, the reason why some Texans now have $17,000+ bills for less than a month of electricity. And then, the same irresponsible Texas Republican government wants the American taxpayer to pay those inflated corrupt market-driven bills.
That scenario is post-Reagan failed economics. When Joe Scarborough asked Paul Krugman if this failure would finally mark the end, Krugman took a defeatist attitude. He pointed out the constancy of failures has not done the job yet, and he does not hold hope.
I have a message for Krugman, YES WE CAN! Yes, we can make a difference this time, but it means not allowing the American short attention span to occur this time. We need to show that Texas suffering a possibility for every American in these times. Hell, even Kansas, the state that followed the Conservative mantra to the letter, has now elected a Democratic governor and lieutenant governor. It won’t be easy. But we should never throw our hands up in the air and give up.
The Right never gives up on its failed policies. We should not give up either. After all, progressive policies are what Americans say they want and have proven better for most.