Category Archives: Economy

Inversion: The New Name For Corporate Tax Evasion.

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Some of the world’s largest corporations were founded in the US. They were capitalized by selling shares to Americans on American stock markets. They relied on our infrastructure, our labor force, and the stability of our currency in order to prosper and grow. That growth was accelerated by tax incentives and government giveaways. They lobbied our Congress and the Federal Trade Commission to turn a blind eye as they swallowed up smaller competitors to create virtual monopolies. At the same time, these corporate giants took advantage of tax loopholes in order to reduce their tax rates to single digits.

So how have these companies repaid American taxpayers for their investment and their patronage?

Many corporations shipped their manufacturing jobs overseas in search of cheaper labor. They then dumped low cost products on our markets in order to force smaller competitors into submission. More recently, they stashed billions of dollars of their ill-gotten profits in foreign banks demanding that our government create a tax holiday to encourage them to “repatriate” the funds at greatly reduced tax rates. Now they are purchasing or merging with foreign competitors so that they might move their books overseas and avoid paying US taxes altogether.

The name for this latest off-shoring scheme is “inversion.”

Inversions are already costing our nation billions in lost revenue…revenue needed to maintain the infrastructure and economic stability these corporations rely upon. Medtronic recently resorted to the inversion scheme. Other companies to take advantage of the accounting trick include Aon, Applied Materials, Eaton Corporation, Fruit of the Loom, Halliburton, Ingersoll-Rand, Omnicom, and Tyco. The latest corporation to consider the scheme is Walgreens, which would presumably move its books from “the corner of happy and healthy” to Switzerland.

To add salt to this festering (and costly) wound, most of these inversions are being aided by our “too big to fail” banks; The very banks that were bailed out of certain bankruptcy in 2008 with our taxpayer funds.

So call it what you want, this latest corporate accounting trick is just another name for tax evasion. And I’d suggest another name for any corporation that resorts to such tactics…Traitor.

Where Is Our Conscience?

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If the events of this past week disclosed anything, it’s that the people of the United States have no conscience. We not only support a government waging war on civilians, including women and children, resulting in 860 dead and more than 5,000 wounded. We have accelerated deportations of desperate mothers and kids escaping the violence and poverty of Central America.

One must ask why? What happened to us? Where is our concern for our fellow men, or more accurately, our fellow women and children? Where is our sense of charity? Where is our morality?

For many years, we have unconditionally supported Israel. That made sense when the Arab nations around it refused to accept its right to exist. But that is no longer the case. Now Israel is the baddest bully on the block, with state-of-the-art weaponry purchased with our money. The Israeli government has made Gaza a prison and every so often, in the words of Israeli military leaders, it invades Gaza to do “a little lawn-mowing.” Israel refuses to negotiate a permanent two-state solution with the PLA because, in its view, the PLA has nothing of value to offer. It has no weaponry other than rocks. Israel also refuses to negotiate with those Palestinians who are armed…Hamas…probably because Hamas provides Israel a reason to justify its repression of Palestinians and its development of Palestinian territory in the West Bank.

So what is the US attitude to the violence in Gaza? Secretary of State John Kerry is working hard to negotiate a cease fire, saying that any agreement must first assure Israel of its security and Palestinians of an economic future. Not to villify Kerry, but why just talk about Israel’s security? It is the Palestinians who are being killed!

As for the refugees from Central America, why are their lives of so little value? Why are we deporting them when we have accepted refugees from around the globe who were facing similar conditions? Are Guatemalan lives worth less than Somalis? Are Honduran lives worth less than Romanians?

Conservatives preach that our entitlements will soon be bankrupt because, as baby boomers retire, there will be fewer people to contribute portions of their salaries to add to the trust funds. They say that we will soon have more people “on the dole” than people working. If that is true, why not accept refugees who have come here looking for jobs? Don’t the taxes and contributions of Latinos count as much as those from Sudanese, Ukranians, Russians, Vietnamese, Cambodians and all of the other refugees we have welcomed?

If we can so easily watch Palestinians die with our complicity; if we can so angrily turn our backs on desperate people seeking our help, we may as well remove the inscription from the Statue of Liberty. We must admit that we are no longer the beacon of freedom for the world. We must admit that we no longer hold the moral high ground.

We must admit that we have no conscience.

Why Does The Right Feel Free To Interpret Science But Not The Constitution And The Bible?

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If anything, it should be the other way around. The Bible is not only full of contradictions. Most of it was written hundreds of years after the events it portrays, and it has lost meaning with each translation. As for the Constitution, not even its authors thought it was infallible. Indeed, the Founders expected it to be modified regularly. Jefferson even suggested that it be revisited every generation. And the Constitution addressed the principles and issues of the time. The Founders could not have imagined the issues of today.

As a result, both the Bible and the Constitution may be interpreted in a myriad of ways.

Science, on the other hand, is based entirely on evidence. Science takes a hypothesis and tests it in order to determine if the principle is correct. Only when the results have been repeated on multiple occasions does science accept the hypothesis as fact. For example, gravity was once considered a theory, but every experiment and observation proved it to be true, so it is now accepted as fact. The same is true of evolution and human-caused climate change. In each case, there is an abundance of evidence. Yet conservatives continue to challenge the principles with a few anecdotal experiences based on personal opinion.

In other words, on these issues and many others, conservatives have things backward.

Conservatives continually want to replace science and other evidence with opinion to suit their own ideologies. For instance, they deny the positive impact of Keynesian economics which has been proven by economists on multiple occasions. Instead, they want to rely on Reaganomics which has never proven to work. Even the two architects of Reagan’s trickle down theory have abandoned the concept as a failure and a fraud.

Conservatives actually believe that the poor are lazy despite the fact that most work full-time jobs. Conservatives believe that giving tax breaks and subsidies to large corporations will actually increase federal revenue and create jobs. Conservatives believe that using contraceptives makes women sluts. They believe that preaching abstinence to teens prevents unwanted pregancies despite all evidence to the contrary. They believe that defunding abortion, denying food stamps and school lunch programs for children and declaring war halfway around the world makes them “pro-life.”

Conservatives deny that our national obsession with coal, gas and oil is destroying our planet despite the findings of the world’s most respected climatoligists and evidence of the rapid melting of the planet’s largest glaciers. Conservatives believe that allowing industries to police themselves will maintain our environment. Conservatives believe that allowing the wealthy and large corporations to influence elections is protecting freedom of speech.

There’s a word for such people…and it’s not conservative. It’s delusional!

Immigration Issues Tied To Foreign Policy.

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Conservatives, especially those in Arizona, California and Texas, are using the recent influx of unaccompanied children from Central America to “prove” that President Obama is neglecting our southern border. They can’t seem to comprehend the fact that the children have been apprehended while crossing the border. They weren’t just given a pass into the US. They also fail to understand that the transport of immigrant children from Texas to facilities in other states has to do with the fact that our holding facilities are overflowing. The Border Patrol could not have been prepared for the mass influx of children who were sent northward to escape the violence and poverty in their own countries.

This is not simply a border crisis. It’s a humanitarian crisis.

The seeds of this crisis were sown more than 100 years ago when the US allowed its corporations to divide up the impoverished nations of the Western Hemisphere. The United Fruit Company (Chiquita Brands International) and the Standard Fruit Company (Dole Food Company) seized control of large tracts of land along with the banana trade of Honduras, Guatemala, El Salvador and other parts of the Caribbean. With the military might of the US behind them, these companies dominated the politics of the region. It was this fact that led to the term “Banana Republics.” And it is the primary cause of the long-term poverty of these nations.

But the meddling of US corporations didn’t stop there.

Following the ratification of CAFTA (Central American Free Trade Agreement), large US-based agri-businesses began dumping corn on Mexico and Central American countries. This led to the financial ruin of small farmers. With no way to feed their families, the farmers were forced to move to the slums of cities in hopes of obtaining jobs. Finally, in desperation, some turned to crime. Many more immigrated north.

Although the current crisis may be caused by misinformation, rumor and greedy smugglers, in many ways, the flood of illegal immigrants across our borders is the result of our own actions (rather the actions of our large, greedy corporations). Without an immigration policy that accounts for the causes of immigration…all of the causes…it will continue and the problems associated with illegal immigration will be magnified.

The Teapublican Zombie Apocalypse.

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Following eight years of the George W. Bush administration, which included two wars (including one pre-emptive war of choice), the failures of FEMA to give aid for the victims of Hurricane Katrina, the crash of the housing market, the nation’s second-largest stock market crash, the bailout of the nation’s largest banks, soaring debt, thousands of home foreclosures and skyrocketing unemployment, the general public was understandably outraged. The Democratic Party stood a good chance of tapping into that outrage thereby ensuring its dominance for generations.

Not only did it fail to do so, it allowed the Tea Party to capture the voters’ anger and help the GOP seize the House of Representatives in 2010.

Was that outcome the result of astute planning and insightful strategies by Republicans? No, it was the result of the stupidity, timidity and outright cowardice of Democrats! Instead of charging Bush officials for the war crimes they committed, Democrats allowed them to profit from the speaker’s circuit and to rewrite history with their inevitable memoirs. Instead of pursuing criminal charges against the banksters who defrauded ordinary Americans, the Department of Treasury and the Justice Department allowed them to give each other six and seven-figure bonuses for their misdeeds. Instead of rewriting the tax code to prevent corporations and individuals from avoiding taxes by stashing profits in off-shore accounts, they bowed to Teapublicans making the Bush tax cuts permanent.

By 2010, the populist outrage created by Teapublican policies was re-directed toward Democrats – not so much for what they had done, but for what they had NOT done. They have not established a brand, making their core values clearly understood. They have not embraced those who joined the Occupy movement and the 99 percent. Too few have stood up against big money and big business. They have not fought hard enough for what they claim to believe in. And, instead of staying focused on solutions to our nation’s problems, they have too often and too easily buckled to criticism.

Now we are heading toward yet another seminal moment in politics and the analysts are suggesting that the Teapublicans will not only hold onto the House. They are likely to take over the Senate! In other words, voters are likely to reward the party that blocked the regulation of financial institutions; the party that panders to large corporations and billionaires while demeaning and dismissing nearly half our population; the party whose policies have hollowed out the middle class and transferred trillions of dollars of wealth upward to those who least need it; the party that took us to war based on a series of lies; the party that has repeatedly tried to cut Social Security and Medicare; the party that refused to allow the duly-elected majority to legislate through a record number of filibusters; the party that prioritized the profits of large corporations over jobs; the party that ignores the needs of small businesses; the party that has destroyed labor unions; the party that underfunds Veterans Affairs then howls when it can’t meet demand; the party that believes that climate change and environmental conservation are based on flawed science.

If you’re a small business owner, a white collar worker, a blue collar laborer, a woman, a retiree, or anyone who wants to breathe clean air and drink clean water, the GOP has made it abundantly clear that they don’t care about you. By the same token, many in the Democratic Party have shown an unwillingness to fight for you. And their election strategy seems to consist of, “A Republican said (or did) something stupid, send us money.” Maybe that explains why so few Democratic voters show up at the polls during midterm elections.

Indeed, the two parties can best be summed up by two quotes. In the HBO series The Newsroom, Jeff Daniels’ character stated, “You know why people don’t like liberals?…cause they lose. If liberals are so f***ing smart, why do they lose so goddam always?” And conservative author P. J. O’Rourke famously wrote, “Republicans are the party that says government doesn’t work, and then they get elected and prove it.”

Unfortunately, I believe they are both right.

VA Problems A Product Of Our Never-Ending Wars.

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Since taking office in 2009, President Obama has been confronted with an extraordinary list of problems: Two wars, a failing economy, the collapse of our largest financial institutions, a massive number of home foreclosures, a failing auto industry, high unemployment, rising deficits and rising debt. Those are just the problems he inherited the day he took office. In addition, he’s faced a multitude of other issues: An obstructionist and do-nothing Republican Party, a racist and increasingly angry Tea Party, a porous southern border, belligerent leaders in Israel and Russia, rising poverty, and a vanishing middle class.

You may not believe the President has done enough to solve our problems but, in reality, his performance has been nothing short of remarkable. Without the leadership of his administration, we may have experienced a second Great Depression – a fact that is clearly spelled out in Timothy Geithner’s new book Stress Test. Of course, Teapublicans don’t want to talk about that. They call it the “Blame it on Bush Syndrome,” and they hold Obama responsible for all the problems he inherited.

Similarly, the Obama administration is now being blamed for delays at some VA health facilities. Yet VA problems existed long before Obama took office. Indeed, he appointed General Eric Shinseki to fix the problems and reduce delays. By most accounts, Shinseki has had some success. But no one can hope to change a health system that serves more than 8.6 million veterans overnight. The problems could be the result of a few incompetent bureaucrats. If so, they must go.

A larger issue is what led to the crowding at VA hospitals…the willingness of too many politicians to send our youth to war for questionable reasons! When we continue to pursue military actions around the globe, we are going to create more veterans – many with serious and expensive-to-treat health issues. Yet it seems that Congress has not fully recognized that reality when it comes to the VA budget. It’s estimated that, in addition to the trillions spent on the Iraq and Afghan wars, the cost of treating our wounded soldiers could also run into the trillions…a fact that has been little discussed.

When the Bush administration took us to war more than a decade ago, few Americans were asked to make sacrifices. Instead, Bush asked us to go shopping. And, instead of raising taxes to cover the cost of his misadventures, he actually cut them! If it weren’t for the yellow ribbons, ribbon decals on cars, and the obligatory “thank you for your service” statement recited to anyone in uniform, there would have been little indication that we were at war. The Bush administration controlled the news media by forcing reporters to be imbedded in military units. It even banned news media from photographing the flag-draped coffins of those killed in war.

Out of sight…out of mind.

The lesson in this is that if you want to go to war, you better be willing to pay the price. Everyone should be asked to make some sacrifices. Everyone should be asked to pay for the sacrifices of those wounded in war. And those costs should be made abundantly clear. Indeed, such costs are the only real deterrent to cause voters and politicians to hesitate before waving the flag, beating the war drums and sending our troops into yet another foreign conflict.

Our Ongoing National Shame.

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Teapublicans are fond of saying that racism is no longer an issue. Conservatives on the US Supreme Court have echoed that sentiment in decisions that weakened and overturned affirmative action. Indeed, many conservatives cite affirmative action as a form of reverse racism. And whenever a politician or African-American speaks out against discrimination, conservatives are quick to label them as racists.

Some conservatives, especially those in the media, are simply unabashed racists that will never listen to reason. Unfortunately, even the more thoughtful and open-minded conservatives have fallen into the trap of assuming that racism was ended by Martin Luther King, Jr. What they fail to comprehend is that the US is only 3 to 5 generations removed from emancipation and that slavery has left a lasting legacy.

Following the Civil War, the largely uneducated population of African-American slaves (for most slaves, education was forbidden) was freed to fend for themselves. Many of those given 40 acres and a mule had their property stolen by whites. Many were still abused. Most found low-skilled, low-paying jobs and were herded into ghettos with little opportunity for advancement. Their children were sent to substandard schools. Even those who struggled to excel in school were discriminated against and given few job opportunities. In many states, African-Americans were not even allowed to vote until a generation ago. As a result, most laws have been used to bludgeon African-Americans. Police forces have used drug laws to disproportionately incarcerate African-Americans even though African-Americans use drugs at roughly the same rate as whites. Virtually every African-American has been stopped for driving or walking while black. And we’ve all seen the TV “reality” crime shows that focus almost exclusively on minorities. (A producer for one of the shows admitted that no one wanted to watch a show that focused on police busting young, white men for the same crimes.)

In the 1960’s many white families abandoned our cities for the suburbs to enroll their children in white-dominated schools and leaving African-Americans with the burden of paying for the infrastructure of the central cities, for police and fire protection, for luxurious sports venues, and for the freeways used almost exclusively by suburbanites. Cities redistricted their schools along racial and economic lines. So today, on the 60th anniversary of the US Supreme Court ruling Brown v. Board of Education which ordered the desegregation of schools, many of our schools are more segregated than they were at the time of the ruling.

Moreover, a Center for American Progress study found that, nationally, we spend $334 less for the education of each black student than for each white student! We may be unwilling to pay for the education of African-Americans. But we sure don’t mind spending millions more to send them to prison. According to The New Jim Crow by Michelle Alexander, there are now as many African-Americans in some stage of our “justice” system as there were African-American slaves at the beginning of the Civil War!

Yet the GOP somehow believes that the playing field has been leveled…that the problems faced by many African-Americans are simply the result of laziness, broken families and a culture of welfare dependency. Some, like Cliven Bundy, even suggest that “the Negro” would be better off as slaves.

Here’s an idea: Why don’t the Teapublicans who believe this nonsense trade places with those they so demean? Let’s see how Rep. Paul Ryan would fare in a ghetto with few prospects for anything beyond a minimum wage job. Let’s see how he fares in landing a job in a suburb with no car and no public transportation to get to that job. Let’s see how Justice Roberts’ children would fare in a school with significantly fewer resources than their peers. Let’s see how white Teapublican suburbanites like standing in line for hours to vote. Let’s see how Cliven Bundy would fare at picking cotton.

Obamacare “Failure” Is Looking More And More Like A Success.

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On Thursday, April 17, 2014 President Obama announced that more than 8 million people have signed up for Obamacare through the federal exchange. Another 1.9 million have signed up through state-run exchanges. Those numbers don’t even include the 3 million young adults who were able to stay on their parents’ plans and the 3 million additional people who have been able to enroll in the expanded Medicaid program.

All of this means that more than 16 million people have been able to take advantage of Obamacare.

Further, states that embraced the bill have seen their uninsured rates decline 3 times faster than states that didn’t. For example, New York’s enrollment has exceeded projections by 60 percent and its insurance premiums have been cut in half! Imagine how many more people would have access to insurance if Teapublican governors and Teapublican legislatures had voted to expand Medicaid in their states and operate their own state health care exchanges. If every state would have embraced the law, we would be well on our way to joining the rest of the industrialized world with near universal access to health care.

It has also been proven that the Affordable Care Act has lowered the cost of health care. Yet Teapublicans refuse to admit that the program has been a success. They call it a “massive failure.” They falsely claim that it is costing jobs. They claim that it is unaffordable, despite studies by the Congressional Budget Office that show it is saving money. Nevertheless, most Teapublican candidates are basing their 2014 election campaigns on their opposition to the ACA. They are promising to repeal the ACA. And, backed by billions of Koch brothers’ money, shadowy front groups are running commercials that repeat lies and attack incumbent Democrats. Yet, according to polls by Gallup, even the resistance to the bill by rank and file Republicans is rapidly disappearing. In February, 72 percent of Republicans said the bill would make them worse off. In April, that number has dropped to just 51 percent!

So go ahead, Teapublicans, base all of your election campaigns on promising to repeal Obamacare. Let the approximately 16 million additional Americans who have gained access to health care know that you want to take that away from them.

20 Things President Obama Should Do After The Mid-Terms.

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In no particular order of importance:

  1. Normalize relations with Cuba.
  2. Support Palestine for UN membership.
  3. End the War on Drugs and begin the process of decriminalization.
  4. Renew calls for a Public Option as part of the Affordable Care Act.
  5. Negotiate pharmaceutical prices as all other industrialized nations have done.
  6. Rally Americans to aggressively deal with Climate Change.
  7. Push for an end to mandatory sentences for non-violent criminals.
  8. Order the Justice Department to aggressively pursue criminal charges against the banksters who collapsed our economy in 2008.
  9. Order the Justice Department to aggressively pursue charges of war crimes against those involved in the CIA’s torture program.
  10. Deny permission for TransCanada to build the Keystone XL pipeline.
  11. Push for changes to the tax code to prevent the use of offshore tax havens by individuals and corporations.
  12. Push the IRS to prevent 501c3s and 501c4s from engaging in politics.
  13. Aggressively push for immigration reform.
  14. End drone assassinations except as an absolute last resort to deal with terrorist leaders and increase transparency.
  15. Order the removal of ALL American troops from Afghanistan.
  16. Offer government-backed, interest-free college loans based on need.
  17. Demand that Congress pass common-sense gun control measures, including universal background checks and a ban on large ammo clips.
  18. Order the Justice Department to create uniform voting rights across all states.
  19. Aggressively push for an end to human trafficking.
  20. Order the Department of Defense to reduce its reliance on private contractors.

Time For U.S. To Show Leadership.

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Actually, it’s long past time. Had the United States shown leadership when scientists first explained the consequences of climate change, when Al Gore released his Inconvenient Truth, we might have already recreated our economy, inspired other nations and generated millions of jobs. Instead, conservatives chose to politicize the issue to protect Bush/Cheney’s interests in Big Oil.

As a result, we’ve seen more than a decade of increased oil exploration; more than a decade of drilling, fracking, and tar sands mining; more than a decade of mountaintop removal to more cheaply mine coal; more than a decade of ice melt releasing methane; more than a decade of increasing corporate farming with its reliance on chemicals and animal confinement generating even more methane; and more than a decade of obstructing alternative fuel industries.

We’ve heard conservatives ridicule solar energy while China and Europe have captured the manufacture of photovoltaic cells. We’ve heard conservatives ridicule Cap and Trade legislation intended to reduce carbon emissions. Worse, we’ve heard conservatives throw tantrums over the delay of the Keystone XL pipeline which environmental scientists fear will amount to “game over” with regard to climate change.

Meanwhile, President Obama has been understandably quiet with regard to the issue. With Cap and Trade blocked in Congress, his administration has quietly gone about raising fuel efficiency standards for automobiles and trucks. The administration had created incentives and offered loans to help jumpstart alternative energy sources. And the EPA has created new standards for electric generation, causing many power plants to switch from coal to natural gas. All of these measures have reduced US carbon emissions 10 percent since 2005.

That’s good, but not nearly good enough!

With climate change accelerating at an astounding pace, it’s time for the US to invest heavily in measures that can halt and reverse global warming. With the world’s largest economy, we’re in a unique position to show leadership. Not only will this head off an increasing number of calamities, including wars, floods, starvation and other human tragedies. It will transform our economy, create jobs and reverse our decline in exports.

Imagine if, instead of increasing investments in our war machine designed to protect sources of cheap oil, we could use that money to help emerging countries gain access to clean water and cheap electricity. And what if we could do so by helping them leapfrog existing, dirty technology by selling them new carbon-free, sustainable energy? We would be helping them build their economies as we build our own. In addition, we would be building friendships that would last generations.

Imagine if by developing new technologies that would create inexpensive forms of carbon-free energy, we could, once again, export products to China that are made in the US. It’s possible. But it will take unified leadership from both President Obama and Congress.

Well, I can dream.  Can’t I?