Category Archives: Economy

Another Dickish Demand.

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Will Richard, The Dick, Cheney never take the hint and just fade into retirement?

Previous former presidents and vice presidents retired to their compounds surrounded by Secret Service (such as George W. Bush) or devoted themselves to humanitarian causes (such as Jimmy Carter, George H.W. Bush and Bill Clinton).  Former vice-president and presidential election winner, Al Gore, has occupied his time by trying to convince Teapublicans that science exists. 

On the other hand, The Dick keeps elbowing his way onto cable TV to push his particular brand of hate and meanness. His most recent such foray was on CNN’s State of the Union, where he said that President Obama owes the Bush administration an apology.

An apology? For what? For cleaning up the two unfunded wars started by The Dick and his puppet Bush? For cleaning up the economic disaster left behind? For cleaning up the oil and financial industries run wild? For trying to restore our nation’s stature in the world after years of violating the Geneva Conventions? For finally tracking down the leaders of Al-Qaeda?

No, according to The Dick, President Obama should take back his criticism of the Bush administration’s tactics in the war on terrorism. More specifically, The Dick wants President Obama to take back statements from his 2009 speech in Cairo, in which he said the trauma of 9/11 caused America to “act contrary to our ideals.”

It appears The Dick had his feelings hurt (yeah, I know, it’s hard to imagine that he of the bionic heart has feelings) when President Obama denounced The Dick’s “enhanced interrogation” as torture. Of course, The Dick’s waterboarding technique is specifically defined as torture by the Geneva Conventions. But, despite that inconvenient truth, The Dick claims, “We were never torturing anyone in the first place. He (Obama) said we walked away from our basic fundamental ideals. That simply wasn’t the case.”

Even The Dick’s daughter piled on the current President. “He slandered the nation,” said Liz Cheney, “and I think he owes an apology to the American people.”

Proving that you don’t have to be male to be a Dick.

Teapublican Lie #19.

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“Solyndra is an example of the Obama administration’s runaway spending.”

Yes, the Obama administration provided a federally-backed loan of $535 million to help Solyndra create thin film solar cells. Yes, the company went bankrupt. But before you join the Teapublican-led lynch mob to hold the administration accountable, ask yourself: How much more money has been wasted on government loans and subsidies for oil companies? Have you ever heard Teapublicans complain about wasting taxpayer money on a dry well? Have you ever seen a House panel investigate loans or subsidies to carbon-based fuel companies?

But that’s different you say. There’s no certainty in finding oil.

Well, there’s no certainty that a new product will succeed, either. Fact is, the Energy Department took a chance on a company that wanted to build state-of-the-art solar cells in the US, instead of China. The Energy Department took a chance that a government-backed loan would result in more US-based jobs, less dependence on foreign oil and lower carbon emissions. Unfortunately, Solyndra failed as the result of increased competition from foreign manufacturers which are heavily subsidized by their governments. And because Congress failed to pass a comprehensive energy bill that includes alternative energy sources.

Oil production is heavily subsidized through tax breaks at virtually every stage of the exploration and extraction process. So, if the US is willing to risk hundreds of billions in exploration for gas and oil with great risk to our environment, why is it a problem for the federal government to risk taxpayer money to develop clean energy alternatives?

Could it be that the solar and wind industries don’t have lobbyists which heavily contribute to Teapublican election campaigns?

Teapublican Lie #18.

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“The wealthiest Americans pay a disproportionate share of federal taxes.”

Seriously? That’s the crapola they want us to believe?

To counter President Obama’s plan to pay for his Jobs Act by raising taxes on the wealthiest Americans, Teapublicans have gone on the offensive (Yeah, I know, they were already offensive enough) to protect the wealth of their political puppeteers. Through a series of appearances on Sunday morning talk shows, they point to data from the Tax Policy Center showing that the top 1 percent of Americans pays 38 percent of federal income taxes.

Assuming that data is correct, it actually disproves the Teapublicans’ point. After all, by most estimates, the top 1 percent controls more than 39 percent of the nation’s financial wealth (excluding their multi-million dollar homes, high-priced cars, etc.). Therefore, the top 1 percent is actually paying less than its share of federal taxes. And, thanks to Teapublicans, the share of income paid in taxes by the 400 richest Americans has fallen by nearly 40 percent, even as their incomes have approximately quadrupled!

It’s good to be rich. Especially in Teapublican America.

The Least Generation.

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If the heroes of WWII were the Greatest Generation, how would you describe those who have followed in their footsteps? I’d have to say the reviews are mixed.

Take my generation of so-called Baby Boomers.  We started out by fighting for Civil Rights. When confronted with a lame and unjustified war in Vietnam, many of our generation fought despite reservations while the rest of us fought to end wars against those who never attacked our shores. A few years later, we fought to win equal rights for women. And many of us took up other noble causes such as fighting for a cleaner, safer environment.

All of that was admirable. But what have we done lately? Moreover, what has the post-boomer generation (those who are now in their 40s and 50s) done? Let’s just say they may be remembered as the Least Generation.

While the Greatest Generation believed in shared sacrifice in order to obtain lofty goals, such as overcoming the Great Depression and overthrowing despotic dictators such as Adolph Hitler, the Least Generation voted to give themselves tax cuts. While the Greatest Generation built our nation’s infrastructure with hard work and tax dollars, the Least Generation has stood idly by and watched that infrastructure crumble.

While the Greatest Generation toiled and sweat to earn a better future for their children, the Least Generation has mostly reserved its sweat for the athletic club. While the Greatest Generation fought for labor unions and workers’ rights, the Least Generation has fought to destroy them.

While the Greatest Generation scrimped and sacrificed to maintain the war effort, the Least Generation has mostly patted soldiers on the back with a very public “thank you for your service” and privately told themselves “thank God that’s not my son or daughter.”

In recent years, politicians from the Least Generation such as Michelle Bachmann and Eric Cantor have shown they’d rather play partisan politics than do what’s best for our country. They have voted to end welfare. They have cut Medicaid, public education, Early Family Childhood Education and social services while cutting taxes for millionaires and billionaires. They have fought to maintain subsidies and tax loopholes for the world’s largest and most profitable corporations while refusing to extend benefits for the unemployed.

They have voted to cut Social Security rather than raise the cap on FICA contributions for those making more than $106,800. They’ve voted to end Medicare rather than root out the causes of inflated medical costs or negotiate the cost of pharmaceuticals with manufacturers. And they were willing to risk government default rather than risk alienating their wealthy contributors by raising taxes.

Let’s hope the next generation does better. But I’m not optimistic.

Teapublican Lie #17.

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“The federal government paid $16 each for muffins.”

Last week, Teapublican megaphone, Fox News Channel, reverberated with charges that the Department of Justice purchased muffins at $16 apiece at law enforcement conferences in Denver, Colorado.

It was a sensational story.

Teapublican bully and buffoon, Bill O’Reilly used the story to excuse the fact that he and other millionaires pay lower taxes than the middle class. In his interview on The Daily Show, he said he wouldn’t mind paying a little more taxes. But only when the federal government gets spending under control and stops wasting his money on things like $16 muffins. The only problem is that, as usual, O’Reilly is wrong.

According to Hilton Hotels where the law enforcement conferences were held, the $16 charge was actually for a full continental breakfast plus tax. Hardly the extravagant waste of taxpayer money that Fox claimed. And, of course, the alleged transgressions occurred during both the Bush and Obama administrations. (But Teapublicans conveniently ignored that fact.)

And before you make the claim that the cost is still unjustified, consider this. A large part of business and government work consists of meetings, and employees need to eat – even government employees. Additionally, $16 is hardly an outrageous sum for a meal. Have you ever ordered breakfast in a New York, Los Angeles, San Francisco or Washington, DC hotel? Compared to those prices, $16 for breakfast is a steal.

Of course, you’re not likely to hear the truth about “Muffingate” on Fox News Channel. But that should come as no surprise. Fox News Channel seldom tells the truth about anything.

Teapublican Lie #16.

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“Cutting Medicaid and Medicare will save money.”

Anyone who would say this is either lying or doesn’t understand how the healthcare industry works. 

If you kick millions of people off of Medicaid and raise the cost to seniors for Medicare, they will put off going to the doctor as long as they can. Minor ailments then become major ailments. When they’re finally forced to seek help, they have no place to go except the Emergency Room where the costs of treatment can be as much as 100 times that of a doctor’s office or clinic. Since most hospitals are mandated by law to accept all patients, regardless of their ability to pay, the costs are passed along to patients who have health insurance.

So the Teapublicans who don’t want to help pay for someone else’s healthcare treatments through an efficient, well-managed government program will actually wind up paying much more through the rise in premiums for their health insurance policies, through increased taxes, or both.

Our nation’s healthcare costs are already four times the cost of healthcare in other advanced nations. Cutting Medicaid and Medicare will only make things worse.

“Obamacare” (more precisely, Nixoncare, Dolecare or Romneycare, since they proposed the program first) will definitely help. It will offer healthcare insurance to 55 million people who are currently uninsured, and it will institute some cost containment measures to an industry that has seen costs rise at a rate more than ten times the rate of inflation.

But it doesn’t go far enough.

According to a hospital CEO whose opinion I respect, this nation needs to return to a form of managed care (Health Maintenance Organizations). Under the system, the healthcare providers would be charged with keeping us healthy. The providers would also be charged with following best practices, which have been shown to produce the best outcomes, and limiting unnecessary or unproven care.  (Or, in Teapublican terms, “death panels” with the responsibility to review extreme procedures that are proposed for patients with terminal diseases.)

This is one of the most important steps in solving our healthcare crisis as noted in a 1990s study by the MIT Sloan School of Management.  That study showed that, in the US, more than 70 percent of all healthcare expenditures occur in the last six months of a patient’s life. In other words, we tend to ignore our health until something goes drastically wrong.  Then we spare no expense to prove that the diagnosis of a fatal condition is essentially correct.

It’s clear that we need an entirely new approach to healthcare and “Obamacare” is an important first step.  Repealing the Patient Protection and Affordable Care Act will only make things worse. So will the other Teapublican proposals.  We can’t throw the poor off of Medicaid, cut Medicare for the elderly, maintain our out-of-control health insurance system and cut the deficit.

The healthcare industry and the economy are like a large, overinflated balloon. If you push one place, it expands somewhere else.  To make improvements, you have to change the entire entity at once.

Teapublican Lie #14.

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“Immigrants steal our jobs.”

That’s been a common accusation since the very beginnings of our nation. Previous generations despised the Irish, Italians, Germans, Scandinavians, Eastern Europeans, etc. for simply trying to eke out a living. Nothing has changed in the present day, except that now the charge is leveled against Latinos.

In discussing her book, They Take Our Jobs! and 20 other myths about immigrants, Avi Chomsky, historian, teacher, and coordinator of Latin American studies at Salem State College says, “When people claim that immigrants take our jobs, underlying the statement are some flawed ideas of how our economy works. They don’t understand that the world economy is extremely integrated.”

“In the US, there is a dual labor market,” she says. “One category consists of good jobs that offer security, benefits, decent pay and safe working conditions. The second category consists of jobs that are dangerous and unpleasant with no security and low wages. The jobs in the second category have always been done by those who are politically excluded, such as undocumented workers. By politically excluding workers, employers are able to exploit them. And others in our society rely on people doing these jobs.”

In reality, the number of jobs taken by immigrants is a very small percentage of the jobs shipped overseas by our corporations. Moreover, immigrants actually create jobs because they purchase food and automobiles, and they rent or buy homes. They also pay sales taxes, property taxes, income taxes, even Social Security and Medicare payroll taxes. (In 2010, it’s estimated that illegals paid $12 billion into Social Security. Yet they are not eligible for any of the government services provided by those taxes.)

As Chomsky states, “The debate on immigration is a way of creating a scapegoat for very real problems, like the economy, even the environment.”

Teapublican Lie #13.

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“Social Security is a Ponzi scheme.”

Governor Rick Perry must have scraped this BS off the bottom of his cowboy boots, because it smells a lot like Texas fertilizer.

You see, far from being a Ponzi scheme, Social Security is insurance – insurance that guarantees a dignified retirement for hard-working Americans in our old age. Without it, we would likely be treated to scenes of the elderly living in cardboard boxes and digging through dumpsters for their meals.

The premiums for this insurance are paid by withholding less than six percent of an individual’s annual income up to $106,000 per year.

Currently, Social Security has a $2.5 trillion surplus, but given the impending retirement of Baby Boomers, it’s estimated that the program will not be able to make full benefit payments in 25 or 30 years. However, contrary to what Teapublicans would have you believe, Social Security can be easily fixed with relatively minor tweaking. (As with all insurance plans, the premiums for Social Security need to be increased from time to time.)

One option is to raise the income cap to include income above $106,000. (This hasn’t been done since the Reagan administration in the 1980s.) Another option is to remove the cap altogether, which would assure the solvency of Social Security far into the future. Yet another is to limit benefits to only those who actually need them – retirees with annual household incomes of less than $30,000, for example.

Social Security can be fixed.  But not if the media and voters keep listening to Teapublican lies.

Teapublican Lie #12.

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“The US government is going broke.”

In May 25, 2001, Grover Norquist of Americans for Tax Reform told National Public Radio’s Mara Liasson, “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.”

Teapublicans have been trying to bankrupt the government ever since.

Yet, despite their efforts, the United States still has the world’s largest economy with a Gross Domestic Product (GDP) estimated at nearly $14.7 trillion in 2010. That represents approximately one quarter of the global GDP.

Our current problem, as economist Paul Krugman has stated, is “insufficent aggregate demand.” As a result, we do not have enough revenue to cover our spending.  Moreover, much of the money spent is misallocated. To fix our economy, we need to increase tax revenue from those who can most afford it. And we need to create jobs by spending on necessary projects while interest rates are at all-time lows.

But, instead of dealing with the real issues, Teapublicans are using the debt crisis they created to destroy labor unions, to eliminate employee benefits, to depress salaries and eliminate our safety nets (the so-called entitlements).

Contrary to Teapublican accusations, these programs are not responsible for our growing national debt. Social Security and Medicare are funded by payroll taxes while our defense spending is not. 

According to estimates, our annual military/security budget is $1.1-$1.2 trillion, or 70-75 percent of the federal budget deficit. It has doubled since 9/11. And much of the defense budget is squandered through poor oversight, lack of planning and corruption. In fact, the Commission on Wartime Contracting stated that as much as $60 billion was lost to waste and fraud in Iraq and Afghanistan over the past decade!

The US is not broke.  But if we keep electing Teapublicans, we soon may be.

Teapublican Lie #11.

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“Obama is anti-business.”

Since Obama was elected president, the stock markets are up more than 31 percent and profits for large corporations are at all time highs.

That’s anti-business?

When CNBC’s Jim Cramer was interviewed on Hardball with Chris Matthews, he said he couldn’t understand why big corporations hate Obama. He said he asked corporations what they dislike. They mentioned taxes and regulations, but taxes under Obama are the same as they were when Bush was in office. And they couldn’t name a single regulation they want changed.

“There’s never been a better guy in Treasury than Tim Geithner,” Cramer said. “I really don’t understand why they don’t like Obama. They just don’t.”

Cramer may not know. But I think I can tell you why big corporations don’t like Obama. He hasn’t sold out to them like Teapublicans have. And like most Democrats, he still represents working people and the middle class.