Category Archives: Politics and the economy

The tragic tale of oppressed billionaires

Glenn Greenwald has a must-read piece on Continetti’s apologia thingy to the Koch brothers in the Weekly Standard regarding how influential billionaires are being cruelly victimized by bloggers and the like. It’s a tragic tale. http://www.salon.com/news/opinion/glenn_greenwald/2011/03/27/koch/index.html

And Benen quotes Charles Koch and comments…

“”His father was a hard core economic socialist in Kenya… So he had sort of antibusiness, anti-free enterprise influences affecting him almost all his life. It just shows you what a person with a silver tongue can achieve.” 

Now, Koch’s vast wealth proves that one need not be intelligent to get rich, but remarks like these are still just embarrassing.” http://www.washingtonmonthly.com/archives/individual/2011_03/028649.php

Not merely embarrassing in getting details wrong, I’d point out. Consider the stunning lack of self-awareness here. Obama is profoundly influenced by a father who was absent and played almost zero part in Obama’s life. On the other hand, the Koch boys who were raised by and gained their millionaire to billionaire fortunes from a co-founder of the John Birch Society, that’s invisible to the dork.

Big fucking surprise

President Richard M. Nixon discussed with Brazil’s president a cooperative effort to overthrow the government of Salvador Allende of Chile, according to recently declassified documents that reveal deep collaboration between the United States and Brazil in trying to root out leftists in Latin America during the cold war.

Here

Medical insurance PR exec turns whistleblower

If you haven’t seen this, attend.  An insider lays out how the medical insurance industry operates its PR divisions in order to paint a benevolent and caring picture of themselves while covertly spending multi-millions to obstruct and thwart any change to the status quo which might do damage to their bottom line.

And Potter on CNN… watch here

Income inequality trend – what matches it?

Paul Krugman (and others) have noted recent income inequality figures from  Emmanuel Saez at Berkeley.    Here is the historical perspective graphed…

Two major trends are immediately evident – downwards from the 20s and then upwards from the the mid-70s.  We know what brought the trend down from “the guilded age” but what brought it back up?

I’ve previously noted here Lewis Lapham’s essay “The Tentacles of Rage”. What Lapham describes in this essay matches yjod rise and does so far better than any particular individual or party holding the Presidency or the inititation of any particular policy or the establishment of or dismantling of any particular institution related to governance in the US.

Further, one can see quite clearly how what Lapham describes is presently in full bloom in the broad campaign underway to kill healthcare reform in the US and to bring down a President who likely will, if he is able, move the country back towards the sorts of regulations and perspectives which caused or facilitated the downward trend mentioned above.

I encourage everyone to read the essay with care and with attention to the correspondences between the timeline demonstrated in the graph and the correspondences between the thesis Lapham advances with what we have all experienced since the mid 70s and are still experiencing now.

Medical insurance company exec turns against the American system he was a part of

Wendell Potter, former head of Public Relations for Cigna, speaks out against his industry…

interview here (I caught it two nights ago…it’s very good

Krugman asks the question

July 3, 2009, 9:00 AM

Secrets of the WSJ

This morning’s Wall Street Journal opinion section contains a lot of what one expects to see. There’s an opinion piece making a big fuss over the fake scandal at the EPA. There’s an editorial claiming that the latest job figures prove the failure of Obama’s economic plan — something I dealt with in the Times. All of this follows on yesterday’s editorial asserting that the Minnesota senatorial election was stolen.

All of this is par for the course; the WSJ editorial page has been like this for 35 years. Nonetheless, it got me wondering: what do these people really believe?

I mean, they’re not stupid — life would be a lot easier if they were. So they know they’re not telling the truth. But they obviously believe that their dishonesty serves a higher truth — one that is, in effect, told only to Inner Party members, while the Outer Party makes do with prolefeed.

The question is, what is that higher truth? What do these people really believe in?

US economy and militarism

from Matt Yglesias

Quote of the day – “the wondrous and compassionate US medical delivery and insurance system” category

A Harvard study found that 50 percent of all bankruptcy filings were partly the result of medical expenses. Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem.

The Democratic Strategist (june 1, 12:13 PM)

Health care reform hurdles

To the degree that the Republican Party fails electorally, business interests which have advanced their goals mainly via that party will gradually shift their lobbying and power-leveraging over to the Dems.

Here’s Krugman from today’s column discussing the medical/insurance/pharmaceutical industies’ seranading of Obama…

Before we start celebrating, however, we have to ask the obvious question. Is this gift a Trojan horse? After all, several of the organizations that sent that letter have in the past been major villains when it comes to health care policy.

I’ve already mentioned AHIP. There’s also the Pharmaceutical Research and Manufacturers of America (PhRMA), the lobbying group that helped push through the Medicare Modernization Act of 2003 — a bill that both prevented Medicare from bargaining over drug prices and locked in huge overpayments to private insurers. Indeed, one of the new letter’s signatories is former Representative Billy Tauzin, who shepherded that bill through Congress then immediately left public office to become PhRMA’s lavishly paid president.

The point is that there’s every reason to be cynical about these players’ motives. Remember that what the rest of us call health care costs, they call income.

What’s presumably going on here is that key interest groups have realized that health care reform is going to happen no matter what they do, and that aligning themselves with the Party of No will just deny them a seat at the table. (Republicans, after all, still denounce research into which medical procedures are effective and which are not as a dastardly plot to deprive Americans of their freedom to choose.)

I would strongly urge the Obama administration to hang tough in the bargaining ahead. In particular, AHIP will surely try to use the good will created by its stance on cost control to kill an important part of health reform: giving Americans the choice of buying into a public insurance plan as an alternative to private insurers. The administration should not give in on this point.

But let me not be too negative. The fact that the medical-industrial complex is trying to shape health care reform rather than block it is a tremendously good omen. It looks as if America may finally get what every other advanced country already has: a system that guarantees essential health care to all its citizens.

Full column here

Update: Ezra Klein is cynical:

Jon Cohn is enthused. Paul Krugman is excited. Maybe I’m just churlish. Maybe I’m getting cranky as I age. But I can’t shake my skepticism about today’s big health care announcement.  Jon Cohn is enthused. Paul Krugman is excited. Maybe I’m just churlish. Maybe I’m getting cranky as I age. But I can’t shake my skepticism about today’s big health care announcement…

Update 2: And the Swift Boat crowd does their thing on healthcare, of course

Yikes!

Sen. Dick Durbin, on a local Chicago radio station this week, blurted out an obvious truth about Congress that, despite being blindingly obvious, is rarely spoken:  “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they franklyown the place.”  The blunt acknowledgment that the same banks that caused the financial crisis “own” the U.S. Congress — according to one of that institution’s most powerful members — demonstrates just how extreme this institutional corruption is.

read Glenn Greenwald here

Income, college enrollment/completion and social justice

I’m going to paste in this full piece by Matt Yglesias because of the importance of this data.

College Attainment and Family Income

Peter Orszag delivered a speech yesterday called “The Case for Reform in Education and Health Care” that included a number of interesting slides. Here’s one:

As you can see, family income has a big influence here. Two thirds of the kids with average math scores and low-income parents wind up not going to college, while almost two-thirds of high-income kids with average math scores do go. And as he shows in the following slide, parental income also has a strong impact on college completion:

This, in turn, has a substantial impact on a person’s long-term economic prospects as seen in our country’s large and growing wage premium:

On the one hand, this represents a cycle of substantial social injustice. People who have the misfortune of being born to poor parents have a much worse chance of going to college than do those born to wealth parents and this, in turn, has bad implications for their future earnings prospects. Given these facts, various efforts to reduce the tax burden on the estates of multimillionaires is obscene. The children of the wealthy have plenty of advantages in life besides what they inherit. Taxing that money and using it to provide some opportunities for those who aren’t well-born should be a no-brainer.

This situation is also a major drag on our economic growth. The rising college wage premium reflects the fact that labor market demand for college graduates is growing more rapidly than the percent of the population graduating from college. That’s good for college graduates, but bad for the economy as a whole. The private lenders and their congressional allies who are blocking billions in additional financial aid for poor students by insisting on taking a “cut” worth billions a year are slowly-but-surely strangling the economy.

Matt’s post is here

The “clean coal” folks (by “folks”, we mean a huge industry lobbying enterprise)

CQ Weekly, Roll Call, Politico, and The Washington Post. They sponsored presidential debates on CNN, and their “clean coal” boosters were a fixture on the campaign trail. They’ve rolled out a series of TV spots from the firm that promised that what happens in Vegas will stay in Vegas.

They’re the American Coalition for Clean Coal Electricity, a collection of 48 mining, rail, manufacturing, and power-generating companies with an annual budget of more than $45 million — almost three times larger than the coal industry’s old lobbying and public relations groups combined. ACCCE (pronounced “Ace”) is just celebrating its first birthday, but it has already become a juggernaut shaping the terms of the climate change debate on Capitol Hill — even while weathering a high-profile assault by critics who accuse it of peddling hot air.

Read the full story here

h/t TPM

“We’re being taxed to death and we’re sick of it!”

That, of course, is the Howard Bealish narrative that Fox and talk radio (and those Republican politicians who tag along behind) are now engaged in pushing in some hope that this ‘populist’ rabble rousing will reverse entropy and cause time to go backwards and all those broken bits on the floor to fly up to the top of the table and become a reconstituted conservative movement.  Clearly one assumption here is that because truth was little present in that earlier era, there’s no reason to pollute the rebuilding with it now.  The following is from Steve Benen

Last week, Bruce Bartlett, a former Treasury Department economist in the Bush administration, wrote an interesting column comparing U.S. tax rates with countries around the world. Bartlett, a conservative, found that the United States “is a relatively low-tax country no matter how you slice the data.” In 2006, total taxation (federal, state and local) amounted to 28% of the GDP. Of the 30 countries in the Organization for Economic Cooperation and Development, only four had a lower tax ratio than the U.S.

But, conservatives said, who cares what kind of taxes are imposed by other industrialized democracies? Since when do we care? So, this week, Bartlett went with a different approach, comparing the current U.S. tax structure with recent generations.

The exercise is straightforward enough. Bartlett identified the “effective federal income tax rate — taxes paid as a share of income — for a family with the median income. The median is the exact middle of the income distribution — half of families are above and half are below. It’s as close as we can get, statistically, to the typical American family.”

He found that the median family, in the most recent year available, “paid 5.91% of its income to the federal government in the form of income taxes.” In 1981, the median family paid double, and current rates are “well below the rate that prevailed from the 1950s through the 1990s.”

What’s more, the 2009 numbers are almost certainly lower than 2007, thanks to Obama’s middle-class tax cut.

Given all of this, Bartlett draws the right conclusion about the “Tea Party” events this week, where Tea Baggers complained bitterly about a crushing tax burden: “I believe this was largely a partisan exercise designed to improve the fortunes of the Republican Party, not an expression of genuine concern about taxes or our nation’s fiscal future. People should remember that while they have the right to their opinion, they are not entitled to be taken seriously.”

Post Script: For the record, I made this chart, using the table in Bartlett’s piece. I’m hoping to break into the lucrative world of chart blogging someday.

High speed rail proposed routes

Come Sunday, I’m again going to drive from Portland to Vancouver and return the next day.  I commonly do both directions in a single day (about 12 hours total).  As it happens, I love driving the highway normally but things can get very wet in the Pacific Northwest.  That one route looks pretty appealing to me and I’m sure other routes do so to others.

Get it done, boys and girls.  Smart in all sorts of ways.

Tea bag parties and corporate organizers

As has been noted widely for a while now, though the tea bag parties are being promoted (particularly on Fox) as “grassroots” protests, the organization and funding behind them is coming from mainly from an organization called “Freedom Works”.

Freedom Works is headed by Dick Armey, ex Republican representative and co-author of the Contract for America.  Freedom Works functions as an advocacy group but also as a front group for corporate lobbyists.   From  Think Progress

- Armey’s Freedom Works is actively organizing against health care reform. Indeed, Armey’s lobbying firm represents pharmaceutical companies, such as Bristol-Myers Squibb, that oppose comparative effectiveness research in the health reform plan because such a program may cut into revenue for branded drugs.

– Armey’s lobbying firm represents the trade group for the life insurance industry. Indeed, FreedomWorks mobilizes its members for deregulated life insurance reform.

– Currently, FreedomWorks is focusing their energy activism on supporting the status quo reliance on fossil fuels. In addition to working for various domestic oil companies with a vested interest in opposing change, Armey’s lobbying firm represents Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister of the UAE, on energy related issues such as maintaining the U.S.-UAE relationship where “U.S companies have played major roles in the development of UAE energy resources, which represent about 10 percent of global oil reserves.”

– In 2006, Armey’s lobbying firm represented the Senado de Republica (Mexican Senate) on “enhancing U.S.-Mexico relations,” and specifically onimmigration policy. Curiously, during the same period, Armey’s Freedom Works stood out as one of the few right wing organizations to boldly support comprehensive immigration reform.

Last year, the Wall Street Journal exposed FreedomWorks for building “amateur-looking” websites to promote the lobbying interests of Armey.

Like I said…

Yglesias has no shortage of smart ideas.

The fascinating finding in this dKos polling data on people’s attitudes to various locations that frequently serve as right-wing bogeymen is to some extent obscured by the presentation of all the cross tabs. This chart I made boils down the key facts that San Francisco, New York, Europe, and even the dread France are popular among the public at large and even Republicans at large but held in low esteem specifically in the South:

Way back in his 1998 Atlantic article “The Southern Captivity of the GOP”, Christopher Caldwell was warning that “the Republicans have narrowly defined ‘values’ as the folkways of one regional subculture, and have urged their imposition on the rest of the country.”

Like most articles describing why political parties are suffering from deep, structural flaws, Caldwell’s was ultimately undermined by the basic reality that events matter. A combination of poor ballot design, a compliant Supreme Court, and America’s moronic election system put George W. Bush in the White House despite the fact that most people didn’t want him to be president. Then 9/11 changed which issues people care about and led to GOP wins in 2002 and 2004. But you do see that pattern Caldwell identified coming into play a lot nowadays. It’s not really clear why you would think that “disdain for cosmopolitan cities and Europe” should be constitutive of conservatism, but it does seem to be a widespread element of the southern worldview, and it’s increasingly been adopted as the overwhelming posture of conservatism as such.

And of course, that makes a hell of a lot of sense.  William Buckley and his heirs at National Review and Weekly Standard are well-educated north easterners, for the main part, as are most of the other folks who head and populate the DC rightwing think tanks.  You may have seen the Jon Stewart show where Bill Kristol made a reference to Stewart as a West Side Manhattanite.  The West Side is where Kristol has always lived too.

But the south has always been the bastion of reactionary folkways, not really very happy to have all those wrong sorts of people pouring into the port cities and diluting the genetic purity of the land (often oddly unmindful of the identical arrival of their own ancestors).  A potent political force nonetheless, from Nixon on up, the Republicans have worked to pull the south into their political orbit.  An irony here is that it might be more appropriate now to understand the situation as the south pulling the Republicans into their orbit.  This is a relationship the RNC must reformulate but it’s not at all clear how they are going to do that.

Another aspect I’ve mentioned earlier is the use that the monied or controlling classes have made of populist sentiments and dynamics.  Populism commonly (and very reasonably) targets that monied class as its structural or natural opponent.  Thus it behooves that class to define the political conversation such that some other “elite” becomes the bad guys towards whom the smelly masses ought to be targeting as the cause of their travails.  Universities (founts of Darwinian evolution, atheism, internationalism, liberalism, etc) make a good substitute target.  Government who will write regulations and demand taxes is a good target too, particularly for that monied class who have an appetite for even more money and even less regulation.  It’s promoted as a win/win for that anti-tax/anti-regulation crowd and for the rather poorly off in the south (and elsewhere) but as Katrina and this latest financial crisis (and much else) suggests, it’s really mainly a very big win for one side.

Update: For more, see polling data at  Kos

h/t Andrew Sullivan

Matt Yglesias is one smart fellow

One big political problem with the Gates/Obama reform defense budget is that it cuts a lot of programs near and dear to the hearts of the military-industrial complex and their tame dogs in congress. Thus a lot of talk about how Gates is “gutting” the military. But another problem is that Gates actually isn’t cutting spending so his reforms don’t open up a bonanza of new money for tax cuts or social spending that libertarians or liberals get all that excited about.

That said, Brian Beutler notes that retired Admiral Joe Sestak, now a member of congress, is ready to champion the Gates reforms. And Larry Korb, who’s been waging the battle against bloated defense spending since the end of the Cold War, observes that this budget really is a key step in the right direction.

I would urge progressives who are having trouble getting themselves excited about this fight to recognize two points. One is that it really is nice to reorient a given quantity of military spending in more useful directions even if it doesn’t lead to cuts in the headline number. But the other is that if you ever do want to see further-reaching reform, we need to pass something like this budget first. It’s a key political test of whether it’s even possible to defy what the defense contractors and the joint chiefs want. If that does prove possible, then in years to come many things are possible, including a long-term trajectory that has defense declining as a percent of GDP. If it’s not possible then nothing is possible, and no future president will tackle it.

Here

Tedisco/Murphy special election battle

Ire at Wall St Bonuses Is Now Factor in House Race

This story points to the narrative the RNC will be pushing – “Dems are the party of Wall St” – particularly if anger at Wall St continues or grows.

The Obama administration’s reliance on top Wall St figures and the Clinton administration’s complicity in deregulation makes this easier to sell than it ought to be.  The drive to deregulate and the ideological justifications for the huge disparities in wealth since the Reagan administration are fundamentally and overwhelmingly Republican creatures.

But this narrative serves two purposes.  First, it reflects the omni-present and knee-jerk PR/propaganda device of associating the opposing party with whatever people are mad at.  But second, it hides the causality of Republican ideology, particularly deregulation, in the present mess.   Hiding or glossing over the centrality of deregulation in the crisis will be an attractive prospect for the financial sector and much of the corporate world and we should expect a lot of funding to pour into forwarding this narrative and others that might work to the same ends.

Matt Tabibi – “The Big Takeover”

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Everyone has been citing (and raving about) Tabibi’s recent piece on the economic crisis.  Having myself now read it, I’m joining the chorus.  But it is not a happy story.  It’s here.

It’s not an American thing, it’s a class thing

RBS faces probe over ‘threats’ to directors

The scandal engulfing the Royal Bank of Scotland reaches new heights today with serious allegations from a senior Labour politician that at least three of its former non-executive directors may have been intimidated and threatened with the sack for asking searching questions about its financial affairs.

The Observer can reveal that a former government minister, Lord Foulkes of Cumnock, who has been extensively briefed by former bank insiders, has written to the Financial Services Authority, the City watchdog, asking it to pursue the claims which, if true, could trigger a criminal investigation.

The intervention by Foulkes, who is also a member of the Scottish parliament and sits on the Commons security and intelligence committee, comes amid fears that the bank will be exposed as the UK’s equivalent of Enron – the US trader that collapsed amid systemic fraud.

Full story here