Showing posts with label SOTU address. Show all posts
Showing posts with label SOTU address. Show all posts

Saturday, January 29, 2011

Cutting the Corporate Income Tax

Enough, Already!
By RAHUL MAHAJAN

I listened to the State of the Union speech. What I heard, though, was not President Obama's string of irritating platitudes, but the sound of a nation bent on self-destruction.

I don't say this lightly. Intellectuals have been talking about the fall of the new Rome for decades, and mostly it has been hyperbolic nonsense. This time feels different. It even makes the darkest days of the Bush-Cheney administration seem like some distant, bygone utopia.

The reason for this change is the emergence of two extremely powerful groups that have not the slightest interest in any notion of the public good and are willing to put all of it in jeopardy to satisfy the shortest of short-term interests.

I'm not talking about the forlorn neoconservatives and their paleoconservative allies. They wrecked Iraq, which may never recover. They ripped the velvet glove off America's iron fist. They made American foreign policy a byword for destructive incompetence. They were arrogant and senseless. They instituted what looks to be a permanent national security state.

But they couldn't quite touch, and mostly didn't try to, most of what was good, or at least adequate, about living in America.

That job falls to two of the most sinister forces in the country: finance companies and the Republican Party, also known as the Tea Party.

Now, as Obama might say, let me be clear. I am not saying that these two groups don't have the good of working Americans at heart, that they are in it for themselves, or anything that banal. I am saying that their deliberately unenlightened self-interest, fixated on immediate aggrandizement, puts at risk the good of even the most privileged Americans, and that they are quite happy to hang it all on a throw of the dice in which there are no winning rolls, just losing ones. They are as happily jeopardizing their own long-term interests too.

Before the financial crisis, finance companies made 40% of all corporate profit in the United States (see Freefall, by Joseph Stiglitz), up from typical postwar levels under 20%. The reason is that, except for information technology and entertainment, the one remaining bastion of good old American corporate knowhow is figuring out how to fleece suckers--the raison d'etre of the modern American financial service company (see Griftopia by Matt Taibbi).

Their toxic combination of arrogance, ignorance and short-sighted avarice built a vast imaginary economic empire and when at last it collapsed under the weight of enormous stupidity, the collapse caused very real consequences. And yet they are still not grateful to Obama and his administration for working so hard to save themselves collectively from the consequences of their own actions. The administration's ceaseless labors to repair the damage to credit markets, stock markets, and financial profits (to be contrasted with their half-hearted efforts to address the problems of unemployment, dislocation, and alienation the rest of us have been faced with) have been met with anger, hatred, and constant declarations of victimization by those very lords of the financial earth.

When Stephen Schwarzberg, the found of Blackstone, compared Obama's idea to make a minor change in taxation procedures for hedge funds (applying income tax rather than capital gains tax to managers' compensation) to Hitler's invasion of Poland, one might have written it off as the reaction of a rabid McCain supporter (one of the few on Wall Street during the presidential campaign), but in fact the phenomenon is far more widespread. Daniel Loeb, another hedge-fund founder, probably came closer to a consensus viewpoint among financiers when he warned that the administration seemed focused on "redistribution rather than growth" and that believers in the free market should be frightened. It is funny enough that we live in a country where redistribution is considered an evil in principle; it is beyond farce to characterize Obama as a redistributor.

In fact, in order to avoid both redistribution and economic collapse, Obama put the country even more dramatically into hock with the stimulus--a package of almost $800 billion in spending and tax cuts designed to avoid confronting redistribution. This debt is not one the financiers will have to pay.

All across the country, states and localities are confronting the same problem. Like the federal government, they won't do anything redistributive. In the absence of that, in particular in the absence of the necessary taxes on the people who can afford it to pay for the things society needs, what's left is a zero-sum game pitting the good of society against the budget. Where the federal government wrecked the budget so as not to wreck society , local governments are wrecking society so as not to wreck the budget.

Detroit is considering closing half of its public schools, sending the student-teacher ratio in high schools to 62. And it is not as if Detroit's schools are the envy of the world, so superlative that they can afford to cut back--quite the reverse.

Camden, NJ closed its pubic library system and laid off nearly half of its police and firefighters. And it's not as if crime in Camden is so low it can afford to let policemen go.

Arizona's governor has just asked for federal permission to drop 280,000 of the poor from its Medicaid rolls. And most disturbingly in a country awash in guns where an entire political party and most of the broadcast media are dominated by a group of hired liars, and the occasional maniac, who spout nonsense intended to induce paranoia, Arizona (of all places!) has already slashed mental health spending and is planning to cut another $17.4 million.

The issue of mental health brings me to the second pernicious group, the Republican Tea Party. Although the sudden emergence of the Tea Party from the bowels of the radical right and its placement of a remarkable series of stubborn ignoramuses (and undoubtedly some clever but utterly dishonest operators) in positions of real political power is a big story, there are two bigger stories. One is the takeover of the rest of the Republican Party by the Tea Party. Virtually every previous Republican politician is now a fellow traveler or a hostage of the Tea Party; the so-called "moderates" over whom Obama wasted so much time in the health-care debate know very well that if they don't move sharply to the right they will be primaried and possibly ridden out of town on a rail.

The second is the open articulation and implementation of a strategy of obstruction uber alles. Mitch McConnell said the Republican strategy was to make sure Obama failed, and that is what he did. With a mere 40 or 41 Republicans in the Senate, he managed to keep the Democrats from doing virtually anything to try to repair the damage caused to the country during the Bush years.

The rule was very simple--if the Democrats supported something, McConnell opposed it and he rallied the Republicans in the Senate in lockstep behind him. He opposed things he would have supported, and Republicans filibustered bills that they had co-sponsored in earlier years. Even the most mundane action was subjected to the maximum possible number of holds and delays, bills were read out at full length on the floor, and all of it was in aid of making sure that nothing got done.

McConnell discovered a loophole in democracy, at least in a democracy with so many veto points placed in it by design--if the opposition votes even for bills that it supports, passage and implementation of necessary programs makes the country better off, which often translates into support for the party in power. Thus, the opposition is best off politically if it simply opposes everything--as long as it has the power actually to stop things from being enacted, which the absurd interpretation of the filibuster rule gives it.

Why repeat all of these things that are obvious or ought to be obvious right now?

Because both of these malign forces have gotten away with everything and now Mr. Obama comes in to tell us that we should forget everything, that the last two years never happened, and that we should let him get away with spinning the same starry-eyed bipartisan nonsense with which he inaugurated his presidency.

He actually had the audacity to tell us that things are looking up because "the stock market has come roaring back" and because "corporate profits are up," while gracefully ignoring the fact that unemployment is still extremely high and the entire political establishment has agreed to do nothing about it for the foreseeable future.

And then what did he talk about? Our enemy is China, and we must be ready to "out-compete" them. Nothing about those in this country who have far more power to harm us and are intervening far more directly to do so. We have experienced another "Sputnik" moment and we must respond with a gusher of meaningless platitudes about education and science; this while speaking in front of a Congress half of whose members think of science as a bigger enemy than China.

And, most importantly, we must freeze the federal domestic budget for five years, thus doing nothing to prevent the massive austerity measures coming from state and local governments, and must lower corporate tax rates while somehow raising revenues, presumably with the same magic incantations that the supply-siders used during their ascendancy in the 80's and the aught's. Even though corporate profits are back up, so that clearly the current corporate tax rates have not deterred all that much activity.

To add insult to the injury that was the State of the Union address, all of this happens in the aftermath of Jared Lee Loughner's attempted assassination and act of political terrorism in Arizona. While Loughner's political beliefs are relatively unclassifiable, a dozen other violent incidents, many of them involving murder, have clearly involved right-wing messaging and, in the case of an abortive attack on the Tides Foundation, direct right-wing targeting (Glenn Beck has now trained his sights on a 78-year-old retired sociology professor because of paranoid fantasies he has spun from an article she wrote when he was two years old).

And all of this is being done by people who encourage their partisans to carry guns, to believe that guns are what will defend them from the overweening authority of the state, and to believe that Barack Obama, our pro-corporate center-right president, is bringing a socialist tyranny down on our heads. It is true that these killings incited by the right wing (with reckless indifference to people's welfare, not direct intent to kill) are minuscule in number compared to the daily toll of gun-related violence in this country. But, unlike ordinary criminal killings, these are terrorist acts, and terrorist acts are disruptive far beyond their immediate physical consequences. Fewer than 3000 people were killed on 9/11, about the number of Americans who die in car crashes every month, yet look at how disruptive to the whole world those attacks have been.

Arizona's extremist right (also known as the Republicans) is planning to respond to Loughner's act of terrorism by increasing the scope of right-to-carry laws to universities. Imagine teaching a class about slavery and the Civil War or the genocide of the Native Americans to a right-wing student body carrying guns.

If we allow the continuation of phenomenally lax gun-control, the proliferation of pubic carrying, and the constant metastasization of right-wing paranoia, we may see a wave of terrorist acts that dwarfs those that have already occurred. This will have an absolutely chilling effect on politics in the United States.

Yet how are we supposed to react to this? Major authority figures like President Obama and Jon Stewart tell us that assassination has no politics, that the left and the right are the same (when was the last time you heard a prominent left politician tell people to carry guns at political rallies or say that people are looking toward a "Second Amendment solution" to their problems), and that the real problem is not the people whipping up the violence but the people trying to stop it. Even after all this, only marginal figures will break the conspiracy of silence about the importance of gun control.

And now Barack Obama goes to Congress, says not a word about the fact that the Republicans would rather destroy government than allow it to accomplish anything, and once again calls on Republicans to work with him. He is now as lost in his own arrogance as George Bush and Dick Cheney were. Does he really believe that his shameful capitulation in December on a tax cut for the wealthy was some sort of victory? The only time the Democrats managed to pass anything (except for the mediocre health-care bill which they did pass at the expense of allowing the entire rest of their agenda to go hang) was in the lame-duck session when they made a crooked deal with the Republicans to take the last step to gut the long-term fiscal solvency of the country while doing almost nothing to stimulate the economy, in exchange for passing START and repealing Don't Ask, Don't Tell.

All this has taught the Republicans is that they can get what they want if they are sufficiently obstructionist. What it has apparently taught Obama is that he can do anything he wants--and he has forgotten that it only becomes true when he decides to want what the Republicans want.

Somehow, major figures on the oppositional liberal left have reacted to this shameful capitulation with bland observations on minor political maneuvering, and with a stunning lack of outrage or serious analysis.

Well, it's time for someone to say, "Enough! Ya Basta!" If you don't want to see your country deliberately descend into an abyss of madness and self-destruction, then stop listening to all of the self-congratulatory centrists who are telling you that you are the problem and that you need to stop being so polarizing.

Nero apparently recited from Virgil's Aeneid while Rome burned. If things continue as they are, we'll be watching Comedy Central and waiting for Obama to fix things as our Rome burns.

Wednesday, January 26, 2011

Was the President's Address Total Hogwash? (2 articles)

Obama was mealy-mouthed in avoiding the tough choices that a leader should delineate in a time of trouble.
By Robert Scheer, Truthdig
Posted on January 26, 2011

What is the state of the union? You certainly couldn't tell from that platitudinous hogwash that the president dished out Tuesday evening. I had expected Barack Obama to be his eloquent self, appealing to our better nature, but instead he was mealy-mouthed in avoiding the tough choices that a leader should delineate in a time of trouble. He embraced clean air and a faster Internet while ignoring the depth of our economic pain and the Wall Street scoundrels who were responsible -- understandably so, since they so prominently populate the highest reaches of his administration.

He had the effrontery to condemn "a parade of lobbyists" for rigging government after he appointed the top Washington representative of JPMorgan Chase to be his new chief of staff.
The speech was a distraction from what seriously ails us: an unabated mortgage crisis, stubbornly high unemployment and a debt that spiraled out of control while the government wasted trillions making the bankers whole. Instead the president conveyed the insular optimism of his fat-cat associates: "We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again." How convenient to ignore the fact that this bubble of prosperity, which has failed the tens of millions losing their homes and jobs, was floated by enormous government indebtedness now forcing deep cuts in social services including state financial aid for those better-educated students the president claims to be so concerned about.

His references to education provided a convenient scapegoat for the failure of the economy, rather than to blame the actions of the Wall Street hustlers to whom Obama is now sucking up. Yes, it is an obvious good to have better-educated students to compete with other economies, but that is hardly the issue of the moment when all of the world's economies are suffering grievous harm resulting from the irresponsible behavior of the best and the brightest here at home. It wasn't the students struggling at community colleges who came up with the financial gimmicks that produced the Great Recession, but rather the super-whiz-kid graduates of the top business and law schools.

What nonsense to insist that low public school test scores hobbled our economy when it was the highest-achieving graduates of our elite colleges who designed and sold the financial gimmicks that created this crisis. Indeed, some of the folks who once designed the phony mathematical formulas underwriting subprime mortgage-based derivatives won Nobel prizes for their effort. A pioneer in the securitization of mortgage debt, as well as exporting jobs abroad, was one Jeffrey Immelt, the CEO of GE, whom Obama recently appointed to head his new job creation panel.

That the financial meltdown at the heart of our economic crisis was "avoidable" and not the result of long-run economic problems related to education and foreign competition is detailed in a sweeping report by the Democratic majority on the Financial Crisis Inquiry Commission to be released as a 576-page book on Thursday. In a preview reported in the New York Times, the commission concluded:
"The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done. If we accept this notion, it will happen again."
Just the warning that Obama has ignored by continually appointing the very people who engineered this crisis, mostly Clinton alums, to reverse its ongoing dire consequences. As the Times reports:
"The decision in 2000 to shield the exotic financial instruments known as over-the-counter derivatives from regulation, made during the last year of President Bill Clinton's term, is called 'a key turning point in the march toward the financial crisis.'"
Obama appointed as his top economic adviser Lawrence Summers, who as Clinton's treasury secretary was the key architect of that "turning point," and Summers protégé Timothy Geithner as his own treasury secretary. The unanimous finding of the 10 Democrats on the commission is that Geithner, who had been president of the New York Fed before Obama appointed him, "could have clamped down" on excesses by Citigroup, the subprime mortgage leader that Geithner and the Fed bailed out along with other unworthy banking supplicants.

Profligate behavior has hobbled the economy while running up an enormous debt that Obama now uses as an excuse for a five-year freeze on discretionary domestic spending cuts, that small part of the budget that might actually help ordinary people. Speaking of our legacy of deficit spending, Obama stated, "... in the wake of the financial crisis, some of that was necessary to keep credit flowing, save jobs, and put money in people's pockets. But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in."

Why now? It is an absurd demarcation to freeze spending when so many remain unemployed just because corporate profits, and therefore stock market valuations, seem firm. Ours is a union divided between those who agree with Obama that "the worst of the recession is over" and the far larger number in deep pain that this president is bent on ignoring.


*****

 
Obama’s State of the Union: No Jobs but More Business Tax Cuts
by Jack Rasmus

Not a word about the 25 million still jobless. Nothing about how to help the more than 7 million homeowners who have, or the additional 4 million who will soon, face foreclosures and evictions. Absolute silence about the dozens of states and hundreds of local governments in deepening fiscal crisis and approaching bankruptcy-and the hundreds of thousands of public employees who will pay for that bankruptcy with their jobs, wages, pensions, and health benefits. OK, some vague references to infrastructure and alternative energy jobs-over the next 25 years. Paid for by Obam's explicit reference to cut Medicare and Medicaid benefits for tens of millions.

But the most disturbing element of Obama's State of the Union address last Tuesday night was his firm commitment to cut corporate taxes even further, and thereafter to move on to ‘simplify' the US tax code in general-i.e. a code word in policy circles for further reducing top tax brackets which always results in tax cuts for the wealthiest households.


What Obama proposed in his address on Tuesday was a classic continuation of a supply side, ideological program focusing on business tax reduction, supplemented by various other measures to reduce business costs at the expense of consumers, workers, and others.

But the problem today is not excessively high business costs. It's not a supply side problem. Business has been cutting costs to the bone the past three years with massive layoffs, wage reductions, employee benefit cuts, hiring part time and temp workers, and implementing various productivity boosting measures. Obama and Congress have further lavished tax cuts and subsidies on business at historic levels the past two years. The Federal Reserve in turn has reduced business costs still further by reducing interest rates to record low levels. The result of all this business cost reduction has been a rapid return to pre-crisis levels of business profits and an accumulated corporate cash hoard of more than $2 trillion. And none of this $2 trillion has been spent by business thus far to create jobs to any reasonable extent.

In his address Obama praised the fact that business created 1 million jobs in 2010. But the majority of the 1 million were temp and part time jobs. And at that 1 million a year rate of job creation it will take 15 years just to recover the jobs lost in the recent recession. Yet Obama maintains Business needs further cost reduction assistance, and still more business tax cuts to ‘make them more competitive'.

The problem in the US economy, now experiencing the most lopsided (and weakest) economic ‘recovery' from any recession since 1947, is not too high business costs or insufficient supply side (business tax) stimulus. The problem is demand side-i.e. not enough income for the 90 million middle and working class households. That insufficient income means first and foremost not enough jobs. And Obama last Tuesday night said nothing of substance about how to create jobs today or even in the next one to two years. Job creation was relegated to the distant future, stretched out over the next 25 years.

The US economy and households do not need a 25 year job creation plan. They need an immediate job creation program. And they need a definitive solution to prevent 10 million foreclosures. And the better get quickly a rescue of the states and cities, before the local government crisis sinks the municipal bond markets and subsequently precipitates another ‘subprime'-like financial implosion. Yet no mention of any of this in the State of the Union address, as if these weren't the most serious issues confronting the US economy today.

In his Tuesday address Obama clearly followed in the footsteps of George W. Bush. Bush first passed more than $3 trillion in tax cuts for wealthy households between 2001-2003 by cutting capital gains, dividends, and estate taxes. (Obama last December extended the same for two more years). Bush then followed up in 2004 with several industry-by-industry specific corporate tax cuts worth another $1 trillion. (Obama now follows up with proposals to cut the corporate tax rate). Bush in 2005 then proposed to revise the general tax code in his second term to make it all permanent. Obama and the Republican Congress will pass the additional corporate tax cuts this year, then move on to the general tax code revision in 2012 that will ‘simplify' (lower) taxes on the wealthiest households before the next general elections.

On Tuesday Obama thus echoed the tired corporate refrain that ‘tax cuts create jobs'. His new twist is that the tax cuts are necessary to ‘make US corporations more globally competitive' vis-à-vis their foreign rivals. In other words, the primary focus of the tax cuts is to benefit US multinational corporations. As the argument goes, if they are ‘more competitive' (i.e. if their costs are less), they will be able to get a larger share of global exports and sales, which will mean more investment and jobs in the U.S.

But for more than a decade now multinational corporations as a group have been steadily reducing jobs in the U.S., and will continue to do so. Obama's corporate tax cuts will result in fewer-not more-jobs in the U.S., as corporations use the additional income to continue to invest in new equipment that will result in job displacement rather than new job creation.

More tax cuts for multinationals could also prove to have only a temporary effect at best at boosting exports and profits, and thus investment and jobs. The present period is one in which all the major global economic sectors-the U.S., the Eurozone, China, Japan, the Asian periphery, and BRICs like India and Brazil, are all intensifying their fight over the remaining global export pie.

Their respective, domestic economies have all been experiencing difficulty generating sustained internal economic recovery-except for China which has recently begun to slow its economy on purpose to deal with rising global speculation and internal inflation.

Japan has entered a double-dip recession. Asian periphery economies are rapidly slowing and some predicted to enter recession again. Like China, India and Brazil are slowing their economies intentionally as well, Growth in the Eurozone will slow, driven by its periphery nations' financial instability. Global competition over exports is growing more intense. More currency fights are erupting. More protectionism is likely. And all over a global export pie that will to grow more slowly in 2011 and perhaps more so in 2012.

The newly emerging Obama-Big Business focus on relying on exports and multinational corporations to lift the US recovery to a sustained path is therefore a highly risky policy shift. It will not only fail to create jobs; it will likely fail as well to provide the main source for a sustained economic recovery that has eluded Obama to date. For all who are not bankers, investors, or corporate managers and big stockholders or bond traders-we can expect more of the same for the next two years in a continuing lop-sided economic recovery.

Monday, January 24, 2011

Mr. President: The Fight for the Middle Class Isn't in Washington

by Amy Dean
Monday, January 24, 2011 by Huffington Post

Tuesday night the nation will focus its attention on the president's State of the Union address, looking for solutions to the economic crisis in this country and in their own lives. We can hope to hear President Obama articulate a bold vision for restoring economic security to our nation's middle class. We can also hope that the president challenges members on both sides of the aisle to stop putting politics before the people's prosperity.

However, as the last two years have proven, hope is not enough. Presidential speeches and the hoped for newly moderated rhetoric of the Congress will not suffice to deliver results. Because while we are focused on Washington, Republicans backed by big business interests are undertaking a coordinated attack, rooted at the state level, on middle class employees. This attack could bring the end of the middle class as we have known it.

As the New York Times has reported, Republican legislatures in ten states across the country are pushing "right to work" laws that undermine the ability of employees who vote to join a union to have their choice respected. And even some states with Democratic governors are less focused on creating jobs than adopting measures that scapegoat those in the middle for economic problems caused by those at the top. The Republicans have been very smart tactically by framing the debate around these issues. We can only hope that people will not fall for their misdirection.

At the national level, Republicans will be talking about reducing the deficit and controlling spending. Their arguments are more about rhetoric than real action. Not only do their proposals stand little chance of being enacted, they are two-faced: even while talking about budget cuts, Republicans advocate huge tax cuts for the wealthy and seek to repeal the cost-saving measures and patient protections of health care reform. In truth, their still-heated rhetoric is primarily designed to give Republicans a message to take back into the districts in the next election cycle. We already know what they will be saying in six months or a year: "We tried to save you money, but the Democrats won't let us." The time to start responding to this disingenuous narrative is now.

We must recognize that the national posturing is a smoke screen designed to conceal the real battle, which is happening in the states.

At this very moment, conservatives are prepared with a scapegoat for the economic woes: unions and public employees. They have been very shrewd in using this time of crisis as an opportunity to drive a stake through the heart of the very organizations that have created the American middle class.

Masquerading their proposals as efforts to liberate working people from the yoke of big government, the right is attempting to systematically undermine the institutions that have historically allowed average people to attain a decent standard of living. Rather than seeking to bring everyone up to the standard of living wages and relative economic security that public employees have gained, Republicans are focused on bringing down those few people in our society who still have jobs that afford ordinary people hopes for health care and dignified retirement.

As a result, the campaign for the future of our country is now on. This is not about something as narrow as reelecting Barack Obama in 2012, or about the political future of any individual elected official. It is much bigger than that. We are in the fight of our lives.

So what do we do?

First, we can't focus all of our time and resources on the Congressional debate. The proposals being floated by the Republican House of Representatives make for good grandstanding, but, by and large, they stand no chance of actually being enacted. They are just being used to set the stage for the next election cycle. Therefore, we need to be building our own infrastructure in the districts, not treating local- and state-level politics as something that we can engage in for a few months at the end of each election cycle. We need to begin our conversation with voters in the districts today.

Second, we must make clear that initiatives like wage freezes and "right to work" laws are measures that are handcrafted by the Chamber of Commerce's lobbyists. Big business is pumping huge amounts of money into the effort to attack public employees and scale back regulations, with billionaires like the Koch brothers leading the way. That is who is really behind these drives. The extent to which the right is able to frame their message as a populist one is a measure of our failure to reveal the wealthy financiers backing their agenda.

Republicans frame their proposals as policies that will "get government and unions off your back." But what is actually being created as a result? Time and time again, these policies have not led to "trickle-down" prosperity, but have taken away gains made by average Americans and given them to corporations and those at the very top. By showing the interests that stand behind each side, we must demonstrate who is really the best advocate for Main Street.

Third, we draw a line in the sand with politicians -- and demand that the president lead the way in recognizing the crisis of the middle class. Whether they have a "D" behind their name or not, politicians should not receive one penny from progressives unless they are for increasing standards of living for average people and defending their rights to organize. Unfortunately, since the Clinton years, we have elected leaders who are taking our campaign money on one day and then distancing themselves from employees' organizations and public interest groups the next. These politicians must see that this will no longer fly. They must understand that Main Street is in a fight for its life, and they must act accordingly.

In America, the pot of rampant individualism and neglect of community has been roiling at a low boil for a long time. Ultimately, we must ask as a society: Do we want to be a place where the fire department comes if we have a fire in our homes? Is this a country where you can get care when you're sick, even if you're elderly or lose your job? Is America a place where, regardless of the town or neighborhood you live in, you can send your kids to a decent public school, with qualified professionals teaching our kids? Such things are the reason we agree to pay taxes and contribute to the common good.

At the end of the day, dismantling the government and attacking public servants means undoing these things. The President will articulate his vision in this fight on Tuesday and is even backing up words with actions like the NRLB's steps to protect organizing via majority sign-up. It's outside of Washington where we face the eliminations of people's ability to voluntarily come together in their workplace to have a say in the conditions of their employment. That would mean creating a country that has a huge gulf between the wealthy and everybody else. It means ending middle class America as we have known it. And that is not something we should let happen without a fight.

Civility? Whatever. Capitulation? No Thanks.

by David Michael Green
Monday, January 24, 2011 by CommonDreams.org

Civility in politics is - pardon the anti-pun - all the rage nowadays.

Go figure. I guess assassinating members of the ruling class tends to have that kind of sobering effect.

So everyone's talking nicey-nice, certain members of Congress will be sitting together during this week's State of the Union despite their differing party affiliations, and most (but not quite) everybody has avoided calling each other Nazis for a week or two.

That's cool. You know, I'm all for civility in politics. I've been disgusted and sometimes horrified at what has become of our national discourse these last decades. A multi-draft-deferral war-avoider, for example, running for the US Senate by branding a triple-amputee Vietnam vet as weak on national security, an' all. Like that kind of incivility.

So yeah, can we and should we disagree more politely in American politics? How does whatshername put it? ‘You betcha.'

What I'm not down for, however, is civility that is actually a mask for capitulation.

Check out this sampling of headlines, from just one page (the front), of one newspaper (the New York Times), on one day (January 22, 2011):

"Obama Names G.E. Chairman To Fiscal Panel: A Pro-Business Signal by the White House"


"Tiny Species at Heat Risk, From Tropics to Peaks"


"Across Country, Lawmakers Push Abortion Curbs"


"In Tucson, Solace From Relatives of Past Killers"


"Olbermann Quits ‘Countdown'"


"CUNY Professor Threatened"

Get the picture, here? If the right is all of a sudden feeling more inclined toward civility in their conduct of American politics, maybe it's because they've won every battle they've engaged in these last decades.

And if the "left" continues its pattern of "civility" in their conduct of American politics, maybe it's because that's the name they've given to what is in fact just capitulation to the right.

Well, strike that. There's no maybe about it, actually. That's precisely what's happened.

And it pains me to see it.

It pains me to see that you can actually get away with running a political program for decades on end, in a democracy where everyone can vote no less, that is all about transferring the wealth of working people to the rich.

It pains me that the public is so dumb that you can steal their money and their quality of life, for decades on end, and successfully hide what you're doing behind attacks on gays, or minorities, or immigrants, or tin-pot dictators abroad.

It pains me that (alleged) people ranging from Joe McCarthy to Newt Gingrich to Glenn Beck to Sarah Palin to Rush Limbaugh could infect American politics with their endless stream of venom, bringing it to its knees, and the public's reaction to that is to decide that American politics is too angry and vitriolic in general. As though these folks had their lefty equivalent in - who? - Rachel Maddow? As though the vitriol were coming from both sides of the aisle.

And as though there even are two sides of the aisle, anymore.

In truth, there is. Kinda. Sorta. And peripherally. I do think there is a qualitative difference between Democrats and Republicans on issues of civil rights. And I think it highly unlikely that a Democrat would have plunged the country into the folly of Iraq in 2003. Even though it was America's most liberal president on domestic politics - Lyndon Johnson - who lied the country into its most debilitating war, I think it's fair to say that those days are over. Democrats are hardly different from Republicans on, say, ‘defense' spending or the Palestinian conflict, but I don't think they're as overtly war-hungry as the chickenhawks of the GOP, plain and simple.

But the defining issue of our times is not civil rights or a stupid-ass war in Iraq. Rather, it is instead the question of the distribution of wealth in our society. And on these matters, there is almost no difference anymore between the two parties.

Consider the first paragraph of the Times' "G.E. Chairman" article referenced above. It goes like this: "President Obama, sending another strong signal that he intends to make the White House more business-friendly, named a high-profile corporate executive on Friday as his chief outside economic adviser, continuing his efforts to show more focus on job creation and reclaim the political center."

I'm sorry. I must need to get my hearing-aid batteries checked. For a minute there it sounded like you said "make the White House more business-friendly"? You mean the White House of Larry Summers, the nice man whose policies in the last Democratic White House brought us a massive global recession? Do you mean the White House that bailed out Wall Street, one hundred cents on the dollar, from their outrageous scams but has left the rest of us hanging, losing our jobs, our houses and our unemployment safety net? Do you mean the White House that drafted a ridiculous health care legislative monstrosity in order to placate insurance companies, forcibly driving 35 million brand-new customers into their arms? That White House? You want to make those guys more business-friendly?

There's been only one issue that really matters in the thirty years since Ronald Reagan came to Washington, and that is the highly successful effort by the plutocracy to enrich themselves further by destroying the standard of living of the middle, working and poorest classes. All the debates concerning taxes and trade and labor rights and spending and regulation policy have been precisely about this single theme. And all the other debates about gay rights and Iraq and immigration and putting Christ back into Christmas have been peripheral matters to this core initiative, if not intentional distractions.

Astonishingly, this campaign has produced enormous success. And, since policies have consequences, these policies have had the consequence of directing almost every penny of the considerable growth in GDP sustained over the last thirty years into the hands of the rich, while everyone else slips into economic despair, or uses credit cards with usurious interest rates to barely keep their noses above water. I say "astonishingly", because you'd think that this development was the product of a non-democracy, because in a real democracy people would never stand for it. But in fact, that's exactly what's happened, with the compliance of the victims in this crime. We do get to actually vote for the people who make policy in this country, but we don't in fact choose candidates with our best interests at heart. In the most recent go-round, we picked a group of feral dog Republicans for our Congress even more obscene than the McCain-Boehner variety who impoverished the country only two years earlier.

So, no doubt Republicans are talking about civility in politics today. First, after Tucson their invective is unpopular even with astonishingly dumbed-down American voters. Second, they realize that bullets are now flying towards members of Congress and that they are, um, members of Congress themselves. But most importantly, there's hardly anything left to loot. As Warren Buffet so eloquently put it, after noting that he pays a lower percentage of his income in taxes than does his receptionist, "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning".

Yeah, I'm all for civility in politics. But not if it's a mask for capitulation. And that's more or less what I see in the American politics of the last generation or so. One "side" is just absolutely crazed-to-the-wall, seemingly unencumbered by any notion of civility, and absolutely destructive of democratic institutions and even government itself, in pursuit of its predatory agenda. Meanwhile, the other "side" pursues the almost identical set of economic politics, only with a nicer face and the endearing big toothy smile of a Barack Obama. But the outcomes are the same.

Those of us distraught at seeing the president punt on first down in his negotiations with the GOP thugs are making the fundamental error of seeing these conversations as actual negotiations. They are such only in the sense that one self-defining tribal faction wants to be the folks who get the perks from actually holding office and doing the bidding of the overclass, rather than allowing the other faction to perform that role. But substantively? Nah. Obama's not ‘folding' in ‘negotiations' because he is not starting out anywhere fundamentally different than his ‘opponents' in these conversations. They both want the same outcome, give or take a dollar or two here and there. They both have to manage their public images in order to appeal to their respective voting bases, while in reality simultaneously serving the same puppet-masters.

In this context, the current blah-blah over civility is just another side show, just another diversion.

And, in any case, civility is over-rated. While I agree that it is rarely necessary to employ the sort of ugly ad hominem attacks out of which the likes of Limbaugh have spun an entire career and a small fortune, what is truly lacking in our politics in not civility, but in fact passion. And honesty.

If I believed that the right in America had the interests of the world, or even just the American people, truly at heart, it would be one thing. But I don't at all. I know instead that their interest is actually in destroying us folks if it is necessary in the process of looting us. Does that deserve the sort of faux civility we arguably practice far too much? We weren't called upon to be nice to the Japanese after they killed about 3,000 of us in a surprise attack, were we? Why am I called upon to treat with respect millionaires and billionaires and the politician whores they've bought, when their goal is at least as destructive?

Does that seem like a far-fetched claim? "Worse than Pearl Harbor", you say? To the hand-wringing centrists in this country, still desperately clinging for reasons of their own precarious emotional well-being to the prevailing ‘civility' narrative, it's a ridiculous statement.

Fine. I say, tell it to the perhaps one million dead Iraqis.  Tell it to the rapidly proliferating number of species across the planet we are speedily eradicating. Tell it to the American children who can't get health care or a decent education because public money has been redirected to tax cuts for the rich or ‘defense' boondoggles of every sort. Tell it to the massive chunk of our population - a greater percentage than in any country in the world - behind bars in order to serve a for-profit prison industry. Tell it to the millions of unemployed Americans whose jobs have been shipped overseas where labor is cheap and goon squads ‘disincentivize' organizing into unions. Tell it to African farmers who starve to death because they can't compete with subsidized American corporate agriculture. For that matter, tell it to the American family farmer. If you can find one.

You know, it's bad enough being screwed. But it's far worse to be screwed and to have to pretend it's just an honest policy difference between well-meaning patriots with two divergent but equally legitimate and public-spirited positions on these issues.

It's well past time to be blunt about our situation. Indeed, we cannot even hope to ameliorate it if we cannot even begin by labeling it.

The truth is that there are economic predators out there seeking to take what we have so that they can live ever wealthier lives while ours are short, nasty and brutish because of their institutionalized and legalized theft.

Victims of these crimes can choose to treat their assailants with civility if they want.

I'm not interested.

Friday, January 21, 2011

Who Can Fight Off the Social Security Pillagers?

Friday, January 21, 2011 by FireDogLake.com
by Dean Baker

That is the question that supporters of Social Security should be asking as we brace for President Obama’s State of the Union address next week. Specifically, the question is whether Senator Majority Leader Harry Reid will keep up his spirited defense of Social Security or whether he will buckle to the pressure from the financial industry and the Washington insiders.

For those who missed it, Senator Reid distinguished himself by saying the obvious on one of the Sunday talk shows two weeks ago. He said that Social Security is not contributing to the deficit and that the shortfall it faces is still distant and relatively minor. He said he was tired of people picking on this program, which is vital to the financial security of tens of millions of retirees and disabled workers and their families.

Truth is rare in Washington, so Senator Reid’s comments really stood out. If the Senator is prepared to hold his ground, he can save the program.

There is no doubt that the forces arrayed against Social Security are enormously powerful. The wealthy hate the idea of government money going to anyone but them, and since the vast majority of Social Security benefits are going to low and middle-income families, the program is an outrage to their sensibilities.

The financial industry also knows a cash cow when they see one. It would take more than $10 trillion in private accounts to generate the same amount of money as Social Security pays out each year in benefits. If the financial industry collected just 1.0 percent of this sum in fees each year, it would mean another $100 billion a year into the coffers of the Merrill Lynch set.

And, for anti-government conservatives, Social Security is the worst nightmare imaginable: a government program that really works. Its administrative costs are less than one-tenth as high as they are for financial industry. There is minimal fraud and the program does exactly what it was supposed to do: provide a core retirement income and protect workers and their families against disability and early death.

For these reasons, it is inevitable that powerful forces would be looking to ax Social Security. Much of the media, led by the Washington Post (a.k.a. Fox on 15th Street), have abandoned rules of objectivity in their quest to paint Social Security as a basket case.

The most common tactic is to lump Social Security in with Medicare and Medicaid as “entitlements” that will break the budget. Of course, every budget expert knows that the vast majority of the projected increase in spending comes from Medicare and Medicaid due to exploding health care costs, not the modest impact that aging has on projected Social Security benefits.

Peter Peterson, everyone’s favorite Wall Street billionaire, has committed much of his fortune to gutting the program. He is buying everything in sight to advance this goal. This includes setting up a new foundation, paying for scary anti-Social Security documentaries, setting up a fake news service (the “Fiscal Times“), sponsoring rigged public forums (America Speaks), and even playing silly games on the mall.

Can Senator Reid stand up to this massive push?

Well, Mr. Reid has two things on his side: public opinion and the truth. As far as public opinion, there is no doubt that Social Security is a hugely popular program. Everyone loves the security that it provides them, their parents, or their grandparents, and their children. Its sky-high approval rating is across the board with all demographic groups and spans the political spectrum from progressive Democrats to Tea Party Republicans.

The truth is also on Reid’s side. One only has to read the Social Security Trustees Report to see that the program will be fully funded for the next 27 years even with no changes at all. After that date, it would still be able to pay almost 80 percent of scheduled benefits indefinitely, even if nothing were ever done. Furthermore, it is not difficult to find progressive ways to make up the remaining shortfall. Just raising the payroll tax cap to where the Greenspan commission set it in 1983 makes up more than one-fourth of the projected shortfall.

The fixes proposed by the Social Security cutters would involve real pain, some of it longer term and some of it very immediate. Most notable is their proposal to reduce the annual cost of living by 0.3 percentage points. After ten years, this would reduce retirees’ benefits by close to 3 percent, after twenty years the reduction would be 6 percent. This would be a big hit to many seniors who are surviving on less than $20,000 a year.

The longer-term plans call for making the program more “progressive.” This generally means cuts for people who earned $50,000 or $60,000 a year in their working lifetime. That’s better than the typical worker, but it doesn’t fit most people’s conception of rich.

What is so frustrating in this story is that we are not a poor country and are not getting poorer. There is plenty of money out there, if our politicians ever had the courage to confront the rich and powerful. We could easily raise more than $150 billion a year from taxing Wall Street with a financial speculation tax.

We could save as much on prescription drugs if we started having them sold in a competitive market and adopted a more efficient mechanism for financing drug research. And, we could have the Federal Reserve Board hold the bonds it is now buying so that taxpayers are not burdened with hundreds of billions a year in additional interest payments to the wealthy in future decades.

These are items that we would be discussing if the political system were not so dominated by moneyed interests. So, in this context does Senator Reid have a chance?

Actually he has a very good chance. There is an important precedent for Senator Reid’s defense of Social Security. In 1997, President Clinton had reached a deal with Trent Lott, then the majority leader in the Senate, to reduce the annual cost of living adjustment for Social Security. Their deal would have lowered the adjustment by about 1 percentage point annually. After 10 years this would mean that benefits would be almost 10 percent lower and after 20 years they would be close to 20 percent lower.

This plan might have gone through, except for the opposition of Richard Gephardt. At the time, Gephardt was the leader of the Democrats in the House. Even though the Democrats were a minority, everyone knew that if Gephardt spoke out forcefully against this deal, it would create too much political heat to carry it through.

This saved the day. As President Clinton said at one of the Peter Peterson deficit fests last spring: “I wanted to cut Social Security, but they wouldn’t let me.”

Let’s hope that Harry Reid and the American people also don’t let President Obama cut Social Security.

Saturday, July 17, 2010

The Economic Bill of Rights or Second Bill of Rights

(I ran across this and found it interesting, especially as an overlay of todays economic uncertainty--well, you may be uncertain, I'm pretty sure we are nosediving into depression. By the way, when you read these rights, keep track of how many are in existence today--jef)

***

(From the Wiki) The Second Bill of Rights was a list of rights declared by Franklin D. Roosevelt, the then President of the United States, during his State of the Union Address on January 11, 1944. In his address Roosevelt suggested that the nation had come to recognize, and should now implement, a second "bill of rights", not constitutionally amended, but socio-economic and applied to the economy.

Excerpt from President Roosevelt's January 11, 1944 message to the Congress of the United States on the State of the Union[1]:
“ It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known. We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.
This Republic had its beginning, and grew to its present strength, under the protection of certain inalienable political rights—among them the right of free speech, free press, free worship, trial by jury, freedom from unreasonable searches and seizures. They were our rights to life and liberty.
As our nation has grown in size and stature, however—as our industrial economy expanded—these political rights proved inadequate to assure us equality in the pursuit of happiness.
We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence.[2] “Necessitous men are not free men.”* People who are hungry and out of a job are the stuff of which dictatorships are made.
In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all—regardless of station, race, or creed.
Among these are:
  1. The right to a useful and remunerative job in the industries or shops or farms or mines of the nation;
  2. The right to earn enough to provide adequate food and clothing and recreation;
  3. The right of every farmer to raise and sell his products at a return which will give him and his family a decent living;
  4. The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;
  5. The right of every family to a decent home;
  6. The right to adequate medical care and the opportunity to achieve and enjoy good health;
  7. The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;
  8. The right to a good education.
All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.
For unless there is security here at home there cannot be lasting peace in the world.
[1]^ "State of the Union Address".
[2 ]This phrase is found in the old English property law case, Vernon v Bethell (1762) 28 ER 838, according to Lord Henley LC