Category Archives: Economy

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?

Conservative Death Wish?

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For nearly two decades, conservatives have denied…no, scoffed at…climate change. The Koch brothers paid scientists to create reports showing that climate change was a fraud. Republicans first created, then voted against, the idea of Cap and Trade. The Tea Party pushed the Agenda 21 conspiracy saying that a UN plan for global sustainability was a blatant attempt to create a one-world government. As a result, climate change is not only continuing. It’s accelerating at a pace faster than the worst case scenario climate scientists predicted some 20 years ago.

The glaciers on Greenland are melting at the rate of more than 27 feet every year. The Arctic ice pack is melting. Even the ice shelves and glaciers on Antarctica are melting, prompting climate scientists to predict truly catastrophic results.

It’s estimated that just the melting of Greenland’s glaciers alone will result in a sea level rise of roughly 21 feet, flooding 80 of the world’s 100 largest cities! Such a rise will displace approximately one-third of the world’s population and flood many of America’s largest cities, including Baltimore, Boston, Houston, Los Angeles, Miami, New Orleans, New York City, San Diego, San Francisco, Seattle and more. And that’s just from the ice on Greenland!

Far from being frightened by that prospect, many conservative Christians actually welcome the news. They view the crisis as Armageddon…the return of Christ. They even hope to speed the event and the resulting “rapture.” Traditional Republicans fail to recognize the crisis because they believe that acting to prevent climate change would cause harm to the economy and the large, multinational corporations that contribute to their campaigns. More extreme Republicans can’t accept the possibility that Al Gore’s Inconvenient Truth was an undeniable truth. Tea Party Parasites simply don’t believe in science. And far too many others simply don’t know and don’t care.

All of this might be humorous if the consequences of climate change weren’t so severe.

Addressing the problem would not only stave off disaster. It could re-energize our economy. In order to decrease the burning of fossil fuels, we could be building a robust alternative energy industry that would create tens of thousands of US jobs and lead to the export of goods and technology overseas. Restructuring our cities to replace automobile traffic with modern, efficient mass transit would make our cities cleaner, more liveable and create additional jobs. Rebuilding our cross-country rail system to replace long distance trucking would lower transportation costs, reduce traffic on our highways and reduce pollutants in our air. Re-fitting diesel trucks to burn cleaner LP gas would not only reduce CO2 emissions, it would help reduce chronic diseases such as asthma. Certainly, some industries will suffer. But those industries would eventually fail anyway and they’ll be replaced by new, more sustainabile industries.

The cost to do all of this will be many, many times less than the cost of moving or rebuilding just one of our major cities faced with rising sea levels. In all likelihood, the cost could be offset by a single catastrophic hurricane caused by climate change and a couple of seasons of fighting the growing number of wildfires caused by global warming.

We can do this! We can actually fight climate change and profit at the same time. Just because conservatives have a death wish, that doesn’t mean the rest of us have to go along with them.

We Can’t Afford That Anymore.

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Whenever someone proposes rebuilding our crumbling infrastructure, improving schools, funding research for chronic diseases, helping the unemployed, treating the mentally ill, paying pension obligations to public employees, etc., our politicians are quick to say that we can’t afford those things anymore.

Say what? The richest nation on Earth can’t afford to meet the needs of its own citizens?

In reality, it’s not that the US lacks the money to do these things. The federal budget for FY 2014 is $6.3 trillion and, for most Americans, our tax rates as a percentage of income are near all-time lows! So it’s not a lack of money. It’s a matter of priorities. We always seem to have money for military hardware and military interventions around the globe. It’s estimated that the wars in Afghanistan and Iraq will cost $6 trillion. It costs us $2.1 million per year to maintain just one soldier in Afghanistan, and current plans call for leaving up to 20,000 troops in Afghanistan after our “withdrawal.” Yet, some of the biggest budget hawks in Congress are calling for a larger presence in Afghanistan, military intervention in Syria, as well as confrontation in Crimea and the Ukraine. Some even hint at war with Iran.

Is it any wonder that we can’t afford to maintain our own nation?

These same budget hawks voted to dramatically expand funding for the F-35 jet fighter which is years behind schedule and hopelessly over budget. They even added funding to build more Abrams tanks, despite the fact that neither the Army nor the Marine Corps want them. As a result of such decisions, we will spend $820.2 billion on defense in FY 2014, not including Homeland Security. This money is not needed to defend our nation. It’s needed to maintain the American corporate empire; to maintain US control of resources in remote corners of the world; to maintain US access to Middle Eastern oil deposits; to maintain corporate access to global markets and to open new ones; to maintain massive profits and executive compensation.

Yet studies show that most Americans would rather bring our troops home. They would rather rebuild our own nation than one we bombed into submission. So why don’t our Congressional representatives listen? Why do so many continue to vote against the will of the people?

The answer, in a word, is money.

Large corporate interests take money from ordinary, hard-working people through various forms of scams and corporate subsidies. (You’ll find a great example detailed in a Rolling Stone article by Matt Taibbi linked here.) This leads to increased profits. The corporations then give a portion of that money to the election campaigns of politicians in order to buy access and influence. In return, those politicians pass laws to benefit the corporations. And the cycle starts all over again.

On the rare occasions when the politicians take their hands out of the pockets of their corporate sponsors, they pass laws to deregulate industries; to render the EPA and other regulatory agencies impotent; to increase welfare for large corporations while cutting their taxes; to privatize prisons, schools and public pension funds; to cut funding for parks, mental health facilities, public universities and public schools; to redirect taxpayer money to Wall Street hedge funds. All the while, they blame the nation’s resulting economic problems on labor unions, the unemployed and the working poor. To distract the public from their crimes, these fraudster politicians tell us that their actions are necessary to cut debt and create jobs.

What they don’t say is that the only jobs they’re concerned with are their own.

The Politics Of Division And Deception.

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For many years, the GOP has used so-called “social” issues, such as proposed anti-abortion legislation and “sanctity of marriage” laws to divide the voting populace and fire up their base. The Democratic Party has focused on issues like social safety nets, minimum wages and availability of health care. And the debate has left our government largely paralyzed.

In some ways, arguing about the issues that divide the rank and file of the two political parties is akin to rearranging deck chairs on the Titanic. It’s not that the issues aren’t important. But compared to other issues, they are mere distractions…the political equivalent of a con artist bumping your shoulder while picking your pocket.

The con artists are working for large, multinational corporations and the very wealthy. In order to grow and thrive, these companies need two things: A plentiful supply of natural resources and cheap labor. Over the course of history, those needs have led the wealthy to finance exploration, nations to build wide-ranging empires, and corporations to destroy collective bargaining movements.

Following World War II, the desire for access to oil, rubber, timber, tin and other resources led the British, the US and the Soviet Union to attempt to divide much of the world culminating in the Cold War. The desire to acquire resources led us into conflicts in the Caribbean, Central America, South America, the Middle East and Southeast Asia. It was the cause of the Spanish-American War, the war with Japan, the war in Vietnam, and the war in Iraq. It led our CIA to orchestrate the overthrow of elected leaders in Brazil, Chile, El Salvador, Honduras, Indonesia, Iran, Iraq, Nicaragua and elsewhere.

Similarly, the need for cheap labor led mining companies to create company stores and to build entire towns designed to trap workers into becoming hopelessly obligated to the owners. It caused companies to hire thugs to brutally beat striking workers. It led to shooting wars between corporate interests and labor unions. More recently, it led corporations to move factories to Southern “right-to-work” states then on to Mexico to China to India, Pakistan and Sri Lanka.

The executives behind these actions aren’t evil. They’re just doing business. They claim that it’s not their responsibility to worry about social or environmental problems. They believe that their only responsibility is to increase the return on investment for shareholders by decreasing costs and increasing productivity. To them, picturesque mountains merely cover the precious minerals they covet. Pristine forests are merely the lumber needed for construction. Impoverished people in distant lands are simply motivated laborers.

And so it goes.

While we argue over the debt ceiling, corporations and billionaires quietly park their profits in off-shore tax havens then lobby for a tax “holiday” that will allow them to bring the money home at greatly reduced tax rates. While we argue over extending unemployment benefits, corporations lobby for more subsidies and government giveaways. While we argue over food stamps, corporate agribusinesses pocket billions in taxpayer funds. While we argue over Social Security retirement benefits, too-big-to-fail financial institutions steal trillions from 401ks, IRAs, pension funds and foreclosed homes. At the same time, all of these corporations continue to lobby for reduced government regulation and oversight.

It is because of our inattention that a mere 85 individuals now own as much wealth as half of the world’s population…the equivalent of the populations of China, India, the United States, Indonesia and Brazil combined. It’s why unemployment has grown and why most salaries have not. It’s why a few corporations now control most of our food supply. It’s why those same corporations are able to poison the food supply in search of ever larger profits. It’s why the incidence of chronic disease has skyrocketed despite government-funded technology and research that give us the ability to end it. It’s why our climate is rapidly changing while we continue to subsidize the companies responsible for changing it.

As long as we focus on the distractions instead of the actions, things will only get worse.

Stop Blaming Bush?

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On today’s edition of The Diane Rehm Show on NPR, a conservative asked the question, “Can we all admit that this is no longer George W. Bush’s economy?” It’s a fair question. We are, after all, about to begin the sixth year of the Obama administration. So I, for one, am more than willing to concede the point. Even though Bush’s policies crashed the economy, slashing federal revenue through tax cuts for the wealthy and leaving us mired in two unfunded wars with annual deficits in excess of $1 trillion along with massive unemployment, this is no longer Bush’s economy.

It is now quite clearly President Obama’s.

So let’s review what has happened over the past five years. To begin, President Obama signed a stimulus plan that helped stem the bleeding. He gave loans to GM and Chrysler to save the US auto industry and tens of thousands of jobs. He withdrew troops from Iraq and has promised to withdraw our troops from Afghanistan this year. He lifted American spirits by giving the order to kill or capture Osama bin Laden. He expanded health care access to millions more Americans and stemmed out-of-control inflation of health care costs.

Under President Obama, we have seen a consistent rise in GDP (Gross Domestic Product) and the stock markets. At the same time, we have seen a substantial drop in umemployment despite substantial cuts to the number of employees at all levels of government. Finally, under President Obama, we have seen the most rapid drop in the federal deficit in modern history!

And most of this has been accomplished despite a recalcitrant GOP-led House that would have us believe that the way to deal with a struggling economy is to cut federal spending and revenues. Counter to the advice of most every economist, the Teapublicans in Congress have voted against bills that would create jobs, bills that would rebuild infrastructure while interest rates are at historic lows, and programs that stimulate the economy while helping those who most need it.

So, yes indeed. This is President Obama’s economy. And it would be even better if the GOP would get out of the way!

Paying It Forward.

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Renewing the Emergency Unemployment Compensation bill would add $25.2 billion to the current federal budget. Right wing politicians and media outlets tell us that we can’t afford such “giveaways” unless they are offset by other spending cuts. Oddly, they have no such requirements for subsidies to defense contractors, the oil industry, the financial industry, big Pharma, corporate agriculture and other large interests.

But for a program that will prevent 1.3 million people from falling into the abyss? Teapublicans believe that cost needs to be offset!

Certainly saving $25.2 billion sounds good. But, in government, saving money always comes at a cost. In this case, it’s not difficult to imagine the human cost of taking away the only source of income for 1.3 million people…people who have been unemployed for six months or longer. People who are discriminated against by employers who think there must be something wrong with someone who has been unemployed for so long.

And there are other costs.

As journalist Bill Moyers reports, “Harvard economist Lawrence Katz estimates that the expiration of benefits for the long-term unemployed is costing the economy $1 billion per week.” Others estimate the cost to our economy at $400 million a week. Whichever figure is correct, that means the cost of extended unemployment benefits is already offset by what the program contributes to the economy.

Economists confirm that money spent on such programs goes directly into the economy. After all, what else are the long-term unemployed going to do with the money? Save it? Obviously, they spend it. They use it to pay for food, gasoline, utilities and other necessities. It’s not enough to allow them to live comfortably. But it helps. And that money stimulates other portions of the economy. It contributes to sales taxes. It contributes to the profits of local businesses which, in turn, pay income taxes on the money. As a result, the money finds its way back into federal, state and local governments as revenues.

It’s a win-win. It’s taxpayers paying it forward to help their struggling neighbors. Anyone who would say otherwise is cruel and heartless.

Oh wait! I just described today’s GOP.

Stone Cold GOP.

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I can think of no better way to describe Teapublicans’ failure to extend benefits for the 1.3 million long-term unemployed. After all, these are people who, through no fault of their own, are hanging on by their fingernails. Instead of offering them a hand, Teapublicans seem unwilling to give them anything but some nail clippers.

Nevertheless, Democrats have refused to give up on the unemployed. Not only have they called for an extension of benefits, they have pushed numerous bills that would result in job creation. In response, Teapublicans not only refused to act. They demanded more cuts which, according to most economists, would result in even more unemployed. Worse, as the benefits were expiring, Teapublicans took to the airwaves to blame the victims for their plight and to call them moochers!

By contrast, Democratic Senator Chris Murphy spent a day with the homeless in order to better understand their situation. His “guide” was a homeless man who had overcome a difficult childhood with a drug-addicted father. Having worked many years in sales, he lost his job and his home. He now spends his days looking for work and just trying to survive.

Such stories are not uncommon.

Very few of the homeless are lazy layabouts. Many are addicted or mentally ill. And many others are ordinary people who worked hard, played by the rules and found themselves in financial trouble after losing their jobs or encountering medical problems that they couldn’t afford…often despite having insurance.

For example, one of my friends contracted throat cancer resulting in laryngectomy (removal of the voice box) and causing him to lose his job as a telemarketer. That, in turn, caused him to lose his home. An Army veteran, he was too proud to accept offers to stay in friends’ homes. Instead, he survived by showering and changing clothes at the YMCA, using computers at the public library to apply for jobs, reading, visiting the offices of friends, and riding the buses at night. (The bus became his bedroom.) Once a month, he treated himself to a room at a inexpensive motel. His only source of income was a small (very small) check for a military disability. He wasn’t even eligible for SSI.

My friend despised the stench, noise and prostelityzing of church-sponsored shelters. He thought homeless camps were dangerous. So he lived this way for more than a year before he finally received additional disability compensation from the VA.

Tell me, Teapublicans, exactly what made my friend a moocher? What made him so undeserving in your minds that you would deny him, and people like him, unemployment benefits or other forms of help? What would you have him do? He couldn’t ask for job interviews over the phone. He had no phone, anyway. He couldn’t apply in person. As a black man with no ability to speak, most of those he encountered turned away from him. If he handed them a note, they assumed he was trying to rob them!

Aside from his few friends, the only people who would engage him were children. They were fascinated with his stoma (the hole where his larynx used to be) and with the electrolarnyx (the electronic wand that can be used to produce a robotic-like voice).

My friend’s story was worse than most (he has since passed away), but the point is the same. Most of the people who are now without unemployment benefits have similar stories. And Teapublicans seem to think they are disposable.