Category Archives: Economy

A True Conservative.

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During the Teapublican primaries, we’ve all heard candidates who claim to be true conservatives. But upon listening to their plans, I have come to the realization that the only things they really want to conserve are their own fortunes.

It was during a recent Teapublican debate that I discovered I’m definitely not a liberal – never have been. I’ve been a conservative all along.

I believe in conserving clean air and water. I believe in conserving our forests, our streams and our oceans. I believe in conserving wildlife. I believe in conserving fossil fuels by not using them wastefully. I believe in conserving our natural resources by not subsidizing large corporations to exploit them. I believe in conserving our Constitution. I believe in conserving the Bill of Rights which provides equality and the pursuit of life, liberty and happiness. I believe in conserving the separation of church and state.

I believe in conserving lives by only going to war as an absolute last resort. I believe in conserving taxpayer money by eliminating corporate subsidies, off-shore tax havens and no-bid defense contracts. I believe in conserving American middle class jobs. I believe in conserving the American tradition of building things rather than destroying them through vulture capitalism. I believe in conserving the rights of workers to bargain for fair compensation. I believe in conserving our electoral system by banning contributions from corporations and lobbying groups.

I believe in conserving our citizens’ homes and savings with common-sense regulations for greedy financial institutions. I believe in conserving our citizens’ health by providing access to affordable health care. I believe in conserving safety nets such as Social Security, Medicare and Medicaid. I believe in conserving the rights of all people to pursue the marital relationship of their choice. I believe in conserving the rights of women to control their own bodies even if I disagree with some of their decisions. I believe in conserving our future by providing all children with the opportunity to receive a good education.

Finally, I believe in conserving America’s standing as a role model for the world rather than as a bully. And I believe in conserving the idealism that has always driven Americans by focusing on what can be, rather than what once was.

Lies, Damn Lies and Teapublican Lies.

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In every field or endeavor, there are people who have difficulty with the truth. Most of us tell the occasional little white lie, often to keep from hurting another’s feelings. Many of us tell lies to make us feel better or to explain a mistake. And then there are chronic, sociopathic liars who make statements that are provably false.

It’s in the latter category where Teapublican candidates, Fox News Channel hosts, religious conservatives and their supporters reside.

Want to kill Medicare? You vote to replace it with vouchers then tell your constituents that you voted to “save” it. Want to lower taxes for the wealthy? You re-position attempts to eliminate tax subsidies and create fairness as “Class Warfare.” Want to kill the EPA? You tell people that environmental regulations are “killing job creation.” Want to help your corporate funders privatize government agencies? You talk about “government waste” and let corporations cherry-pick the most profitable functions. Want to distract voters from your role in the collapse of our economy? You blame it on the poor, minorities and unions. Want to get rid of ATF and the new Consumer Financial Protection Agency? You simply block the appointment of the agencies’ directors. Want to make President Obama a one-term president? You block virtually every job creating initiative then tell people that his economic policies have failed.

The load of B.S. coming from Teapublicans would fertilize every planet in our solar system.  And it’s growing by the minute.

How do they get away with such blatant, provably false claims? They count on creating anger and mistrust in government. They count on people who are uninformed or misinformed (in other words, Fox News viewers). They count on voters who won’t take the little bit of time needed to research their outrageous claims.

Will their lies work again in 2012? How informed are you? How about your friends and neighbors?

Presidential Backstabbing.

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Before President Obama was even sworn into office, our economy and housing markets completely imploded. The economic collapse was labeled the Great Recession – the worst economy since the Great Depression. After the Bush-endorsed bank bailout, President Obama rescued our automotive industry and requested a stimulus bill to get our economy moving again. In requesting the stimulus bill, he said he hoped it would reduce unemployment, holding it to 8 percent or less. Yet despite the stimulus, unemployment soared to more than 9 percent and Republicans denounced the stimulus as an expensive failure.

On the surface, it would seem Republicans were right. However, it is now obvious that President Obama was fighting against a stacked deck – the result of inaccurate reporting. More than two years after Obama took office, the Congressional Budget Office released data showing that the original collapse was far worse than originally reported. More recently, the National Realtors Association admitted that sales of existing homes have been overstated.

The new data means that the stimulus bill was far from a failure. Rather it was woefully inadequate. Had Congressional Republicans agreed to the original, larger stimulus, we might have seen the economy rebound by now with greatly reduced unemployment. Instead, Republicans fought for a smaller stimulus, and many fought for no stimulus at all!

Moreover, Republicans have blocked every attempt to improve the economy. They have blocked increased regulation of the financial industry to prevent future meltdowns. They have blocked any and every attempt to force the wealthy to pay their fair share of taxes. They have blocked every attempt to remove anachronistic tax deductions for oil companies. They have blocked attempts to remove tax incentives for corporations that ship jobs overseas. They have invoked the filibuster a record number of times. They have blocked a record number of judicial and department nominees.

Teapublicans have done everything possible to make President Obama a one-term president, regardless of the harm they cause to the economy and the nation in the process. All of this has become abundantly clear.

The only remaining questions are whether or not American voters are smart enough to recognize the backstabbing for what it is. And whether or not they will make Teapublicans pay.

The Continuing Destruction Of Our Two-Party System.

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Destroy limits on corporate political donations – check. Marginalize President Obama – check. Block Democratic presidential appointments – check. Block all attempts to improve the economy – check. Destroy ACORN – check. De-fund Planned Parenthood – in progress. Destroy labor unions – in progress. Suppress minority voters in key swing states – in progress. Destroy confidence in mainstream media – check. De-fund Public Broadcasting – in progress. Destroy the Environmental Protection Agency – in progress. Destroy confidence in government – check.

I will probably be dismissed as a leftist conspiracy crackpot for writing this. But if you think these things are unrelated, you’re wrong. More than 40 years ago, right wing Republicans along with conservative Christians set out to change the political landscape. They pushed moderate politicians from their party, labeling them RINOS (Republicans In Name Only). They attacked the media for daring to publish any story counter to their beliefs then eliminated the Fairness Doctrine to allow right wing media to lie as much as they want.

They focused on judicial appointments to replace moderate “activist” judges with conservative “activist” judges. Evangelist “Christian” Pat Robertson prayed (or should it be spelled preyed) for the death of moderate Supreme Court justices so George W. Bush could appoint “true” conservatives. They even attacked science for daring to teach such “leftist” ideas as evolution and climate change.

As a result, politics in this country have undergone a dramatic shift to the extreme right. Many traditional Republicans have switched parties or left politics altogether. Many moderate Democrats are former Republicans. And traditional Democrats are relegated to the Progressive Caucus and dismissed as extreme lefties.

In many states, thanks to the 2010 census and lack of Democratic voter turnout in 2010, Teapublican legislatures are hard at work gerrymandering congressional and legislative districts to benefit their candidates. But the most disturbing development of the Conservative/Religious alliance is the current attempt to suppress minority votes.

In 38 states (particularly swing states), Teapublicans are busy pushing bills to eliminate “voter fraud” by demanding photo IDs for voters. Nevermind that confirmed instances of voter fraud are virtually non-existant. In some states, it’s estimated as many as 50 percent of minority and elderly voters do not have driver’s licenses. Many of those people will find it difficult to obtain photo IDs. So Teapublicans are hoping that they won’t make the effort. And who will it help to suppress minority votes? Certainly not President Obama.

Our two party system and, as a result, our middle class have never been more at risk. If you think that’s accidental or the product of circumstances, think again.

Teapublican Lie #26.

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“The Housing Collapse was created by Democrats, Fannie Mae and Freddie Mac.”

If you listen to Teapublicans, you’d think Democratic Congressman Barney Frank was almost solely responsible for the collapse of the housing market aided by Fannie Mae and Freddie Mac. And they’d have you believe that the collapse is further evidence of an out-of-control federal government that forced banks to loan to the poor then guaranteed loans that could never be repaid.

Yet it was legislation authored and passed by Republicans that led to the collapse.

For example, in 1986, the Reagan administration eliminated tax deductions for credit card interest. Since interest on mortgages was still deductible, that encouraged many Americans to use their homes as credit accounts through home equity loans and refinancing.

The Republican-sponsored Taxpayer Relief Act of 1997 excluded capital gains taxes on home sales encouraging speculation on real estate investments.

The Gramm-Leach-Bliley Act of 1999 deregulated financial institutions permitting banks to risk their customers’ deposits on risky investments.

Finally, Republican deregulation contributed to mortgage brokers and financial institutions writing questionable sub-prime loans in order to collect the origination fees. The loan originators then packaged the loans into mortgage-backed securities selling them to investors. They were even able to mitigate their risks through credit default swaps that allowed them to pass much of the risk onto other institutions such as AIG.

The result of all this was to encourage Americans to view their homes as investments. Those who did not already own a home felt that they could be shut out of the housing market if they didn’t act soon.  That encouraged them to overlook the looming balloon payments of Adjustable Rate Mortgages.

By 2006, the US housing market was a house of cards ready to collapse. And it did.

As for Fannie Mae and Freddie Mac, their only apparent role in the collapse was through the Community Reinvestment Act that encouraged banks to reduce discrimination by writing loans to borrowers in low and moderate income areas. But, in 2006, Fannie Mae and Freddie Mac insured only 24 percent of subprime loans and the Community Reinvestment Act affected only one out of the top 25 subprime lenders.

So Teapublican anger about the housing collapse is entirely misdirected. They have almost no one to blame but themselves.

Seven Common Sense Ways To Fix Our Economy.

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1 – Re-institute the Glass-Steagall Act.

The Glass-Steagall Act was initially signed into law in 1933 to prevent a repeat of the conditions that led to the Great Depression. The law created a firewall between banks of deposit and investment banks, recognizing that a bank of deposit is entrusted with maintaining the financial security of its deposits while an investment bank, such as a stock brokerage, engages in inherently risky activities. When the same financial institution is allowed to participate in both acitivities, the deposits are placed at risk. And since the government insures deposits through the FDIC, it’s also at risk.

Unfortunately, the law was repealed in 1999 and the lax regulation of the Bush administration allowed banks to collapse as the result of the very conditions the law was designed to prevent.

2 – Return Capital Gains Taxes to Reagan-era levels.

During the Reagan administration, the maximum rate on capital gains (money derived from investments) was raised to 28 percent. But, to reward their wealthy masters, Teapublicans have cut the rate to just 15 percent and they want to eliminate capital gains taxes altogether.

Since the wealthiest 1 percent of our population makes most, if not all, its money from capital gains on investments, that means millionaires and billionaires pay an income tax rate of 15 percent or less. On the other hand, many of us who make money from salaries or as sole proprietors pay an income tax of up to 33 or 35 percent, not including payroll taxes for Social Security and Medicare. See the problem?

3 – Return Income Taxes to Clinton-era levels.

Under Reagan, the maximum federal income tax rate averaged 65.70 percent. Under Clinton, the maximum income tax rate was 39.60 percent. Under Bush, the maximum income tax rate dropped to 35 percent leading to massive federal deficits.

Obviously, our current maximum tax rate has weakened our economy.  And unless we find ways to generate more revenue, we will be unable to decrease our debt or repair our infrastructure.

4 – Eliminate the cap on Social Security Withholding.

For the past several years Social Security taxes are withheld on only the first $106,800 of taxable income. By eliminating the cap, we would generate a great deal more money for Social Security, and by paying benefits to only those who actually need them, the Social Security trust fund would be solvent well into the forseeable future, perhaps permanently.

5 – Cut unnecessary duplication of city, county, state and federal offices.

If you want to build a commercial operation today, you may have to trek to as many as four offices to obtain the necessary permits. That’s because each level of government has its own unique regulations. Since environmental issues are necessarily different between Los Angeles, CA and Siren, WI, the need for different regulations is understandable. But why not streamline processes by combining similar functions in a single office? This would not only cut red tape, it would increase efficiency and cut costs.

6 – Buy local.

For the past 40 years, US manufacturers have shipped raw materials to other nations.  Then shipped the finished products back to the US.  This is not only destroying our economy, it is destroying our environment.  In fact, a case can be made that an enormous Hummer SUV is more environmentally friendly than a Prius.  That’s because the Hummer is made primarily in the US.  Eschewing foreign-made products would do wonders for American workers and everyone who breathes.

7 – Buy small.

Walmart, Target, Amazon, etc. are killing local retail stores which has led to the hollowing out of our central cities and the loss of jobs.  Yes, “big box” stores hire many employees, but they often pay less, provide fewer benefits and contribute less to the local economies.  Moreover, by emphasizing cheaper foreign-made products they continue to depress US manufacturing. 

Everyone likes lower prices and greater selection.  But who wouldn’t be willing to pay a bit more if it means our family members, friends and neighbors can keep or get a decent job? 

Na-na-na-na-na-na-na-na-na Goodbye, Senator Pearce!

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This week, Boss Hogg wannabe, Russell Pearce was defeated in a recall election in Mesa, Arizona. You may remember him as the Godfather of SB1070, Arizona’s anti-immigration, anti-Latino bill. Thing is, he doesn’t deserve credit for writing the bill; only attaching his name to it and bullying it through the Arizona legislature.

One of the few things for which Pearce actually deserves credit is corruption and increased political devisiveness in Arizona. Yet, after the election returns were counted showing that he was defeated despite a litany of dirty tricks, Pearce was unapologetic. In a statement televised locally, he said, “If being recalled is the price for keeping one’s promises, so be it.”

Promises? Pearce didn’t promise anything. Promise is a term of hope. That hardly describes any of Pearce’s loathesome actions.

As former Chief Deputy for the self-proclaimed “nation’s toughest sheriff,” Pearce takes credit for having created “Tent City,” a Maricopa County jail located in the desert where prisoners are denied air conditioning despite 100+ degree temperatures and are served baloney sandwiches for every meal.

As President of the State Senate, Pearce not only unabashedly took $40,000 worth of free trips and football tickets from the Fiesta Bowl committee. He balanced the state’s budget on the backs of children and the poor. He demanded drastic cuts in education, while giving money to big business. He closed state parks in a state that depends on tourism. He drove tens of thousands of Latinos from Arizona further depressing the state’s economy. He fought to allow guns on school campus.  He challenged the 14th Amendment and President Obama’s birthplace. And he pushed for bills that would cement the Teapublican stranglehold on state politics for generations.

But despite the embarrassment of being the first Arizona legislator, and the first Senate president, to be recalled, Pearce vows a comeback. And if he’s ever successful, one suspects he’ll raise devisiveness and the corruption of power to entirely new levels.

The Planned Destruction Of Our Two-Party System.

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If you wanted to destroy the opposing political party – not just defeat it – what would you do?

You’d probably look to take away its source of funding while finding ways to dramatically increase yours, such as destroying labor unions while legalizing unlimited corporate contributions as “free speech.” You’d try to marginalize and delegitimize its leader by claiming he was not born in the US. You’d try to destroy its local organizers (ACORN). And knowing that most disputes will end up in court, you’d try to stack the courts with your own appointees while blocking the other party’s.

When the other party is in power, you’d try to block any attempts to improve the economy through filibusters. You’d try to destroy confidence in any media outlets that don’t support your point of view by eliminating the Fairness Doctrine and defunding public broadcasting. You’d try to eliminate as many regulations as possible, so when you regained power you could do whatever you want. And you’d try to destroy public confidence in a government run by the other party.

When your party is in power, you’d try to change the rules to favor your candidates. You’d try to redraw the congressional and legislative districts so you could get more candidates elected. And you’d try to suppress voting blocs that tend to vote for the other party’s candidates through voter suppression efforts such as those being pushed through Michigan, North Carolina, Pennsylvania, Ohio and Wisconsin.

Finally, to ensure your party’s future dominance, you’d try to control our schools so you could teach your own version of history and pseudoscience by rewriting textbooks such as those published in Texas.

If you think that I’m being paranoid, that these events are coincidental, or that both parties do the same things, you simply haven’t been paying attention.

Proof That Trickle-Down Economics Work.

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In the early 1980s, Ronald Reagan’s Budget Director, David Stockman, revived an old economic theory as the basis for the Reagan administration’s economic policy. Reaganomics, aka Trickle-Down economics, aka Supply-Side economics was based on the “Horse and Sparrow” theory of the 1890s, which some believe was responsible for the Panic of 1896.

The basis of the theory is the notion, “If you feed a horse enough oats, some will pass through to the road for the sparrows.”

Of course, Reagan and Stockman stated the benefits of their plan somewhat differently. Their belief was that if you cut taxes for the wealthy, particularly those on capital gains from investments, the wealthy would spend the extra money on additional goods and services thereby creating more jobs for the middle and lower classes. Despite its many critics, the theory has been championed by Teapublicans ever since.

Has it worked? One might say that it has worked all too well…for the rich.

According to a recent study by the non-partisan Congressional Budget Office (CBO), from 1979 to 2007 after-tax income for the top 1 percent of US households has nearly tripled, rising by 279 percent. Over the same time period, after-tax income for the middle class grew by just 40 percent. And those at the bottom saw their incomes increase by just 18 percent.

So, by every measure, Trickle-Down economics have reduced income to a mere trickle for all but the very wealthy. Or, if you relate the results to the “Horse and Sparrow” theory, the supposed benefits are just plain horse dung.