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(G-7 London Summit - even the protests were anemic)

With the G-20 Summit fading from view, I ran across a roundtable discussion of the recently ended G-7 Summit from June 10, 1984. Very tame by comparison to recent Economic Summit meetings, certainly the last two.

But back in 1984 it was all about the Cold War, with sprinklings of the state of the world economy kept off to the side.

Reagan was facing an election year and polishing up the Shining City was at the forefront.

During this Face The Nation program, Leslie Stahl asks several European correspondents their take on the meeting just ended.

Peter Jenkins (Political Editor – The Guardian): “There’s a suspicion now isn’t there, that what we’re seeing now is a President running for re-election and when he’s re-elected he may revert to the true Ronald Reagan. Now I don’t happen to think that will be the case, because I think that he will get sort of locked in to the new policy lines that he’s developing. But I think quite a few European people will reserve judgment until they see what Ronald Reagan looks like on his second Inauguration day."

And of course the interview with Assistant Secretary of State Richard Burt wasn't going to veer off course, despite hints from Stahl that all was not harmonious among the G-7.

Showing cracks in the facade just wasn't going to happen.

This is the legacy of the Reagan era: keep hacking away at vital parts of the safety net so politicians can proclaim they didn't raise taxes. It makes as much sense as selling your car's spare tire and jack.

Republicans used tax cuts as a way to bludgeon Democratic opponents, and instead of making voters understand how vital these government services are, Democrats far too often agreed with the Republicans and raced to cut everything they could. And now, when we need it most, the unemployment system is literally falling apart.

Who could have predicted that if you keep slicing vital services, you wouldn't have them when you need them?

WASHINGTON — Years of state and federal neglect have hobbled the nation’s unemployment system just as a brutal recession has doubled the number of jobless Americans seeking aid.

In a program that values timeliness above all else, decisions involving more than a million applicants have been slowed, and hundreds of thousands of needy people have waited months for checks.

And with benefit funds at dangerous lows even before the recession began, states are taking on billions in debt, increasing the pressure to raise taxes or cut aid, just as either would inflict maximum pain.

Sixteen states, with exhausted funds, are now paying benefits with borrowed cash, and their number could double by the year’s end.

Call centers and Web sites have been overwhelmed, leaving frustrated workers sometimes fighting for days to file an application.

While the strained program still makes more than 80 percent of initial payments within three weeks — slightly below the standard set under federal law — cases that require individual review are especially prone to delay. Thirty-eight states are failing to make those decisions within the federal deadline.

For workers who survive a paycheck at a time, even a week’s delay can mean a missed rent payment or foregone meals.

This is the part of the article that sets my blood boiling:

“Lower tax rates make it easier to attract business,” said Doug Holmes, president of UWC, a group that advocates on behalf of employers. “We don’t want to spend a whole lot of time beating ourselves up because we didn’t raise taxes enough. Nobody anticipated a recession this size.”

Yeah, nobody except a couple of Nobel Prize-winning economists and a bunch of dirty hippies with computers.