Category Archives: Economy

Republicans In Denial (As In Denial Of Any Democrat Proposal)

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Today, Congressional Republicans pulled out of negotiations to resolve the deficit.  And (here’s a shocker) they blamed Democrats.  Their reasoning is that Democrats insist on tax increases rather than merely relying on more than $1 trillion in cuts to Medicare and other programs. 

“Let me be clear.  Tax hikes are off the table,” said House Speaker John Boehner. 

So, according to Republicans, even though the major cause of the deficit is the Bush era tax cuts (primarily for the wealthy), the only way to cut the deficit is by cutting spending for Medicare, Medicaid, Social Security, Planned Parenthood, Public Broadcasting, the Environmental Protection Agency, the Consumer Protection Agency, the Department of Education, etc.  At the same time, Republicans refuse to consider cuts to subsidies for Big Oil and corporate agriculture which they say would be tax hikes.  Of course, they also want to repeal the Affordable Care Act and repeal regulations on the financial industry.

So according to Republicans, when it comes to deficit negotiations, everything is on the table.  Except anything that Democrats want.

I guess that’s what passes for “bipartisan negotiations” these days.

Warring States

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The current debate about withdrawing troops from Afghanistan and Iraq, and the anniversary of Daniel Ellsburg’s release of Pentagon papers started me thinking about our history of wars. When I looked it up, I was stunned!

Since our Declaration of Independence, the United States of America has been almost constantly at war. In fact, not counting the Cold War and relatively minor deployments intended to protect American “interests” abroad, the US has been at war all but 33 years of its 236 year history!

Now you may try to justify those wars (as I used to) by assuming they were the result of our desire to spread democracy around the world and to defend human rights.

You could use that argument. But you’d be wrong.

After wresting the continent away from Native Americans, Great Britain, France, Spain, Russia, and Mexico, our military has spanned the globe. Few of our enemies actually attacked us. More often, wars resulted from a perceived threat to our future and security, especially that of our large corporations. Following is a partial list of military actions involving the US:

1775-83 – Revolutionary War
1776-1915 – Indian Wars
1798-1800 – Quasi-War (undeclared naval war with France)
1801-05 – First Barbary War
1806-10 – Mexico
1810-18 – War with Spanish Florida
1812-15 – War of 1812
1815 – Second Barbary War
1824 – Puerto Rico
1838-39 – Indonesia
1840 – Fiji Islands
1841 – Samoa
1843 – China
1844-48 – Mexican-American War
1853-54 – Japan
1854 – Nicaragua
1857-58 – Utah War (dispute with Mormons)
1859 – Mexico
1861-65 – Civil War
1863-64 – Japan
1866 – Mexico
1866 – China
1867 – Nicaragua
1868 – Japan
1871 – Korea
1873-96 – Mexico
1889 – Kingdom of Hawaii
1893 – Kingdom of Hawaii
1898 – Spanish-American War
1899-1913 – Phillipine-American War
1900 – China (Boxer Rebellion)
1914-17 – Mexico
1915-34 – Haiti
1917-18 – World War I
1918-19 – Mexico
1918-20 – Soviet Union
1941-45 – World War II
1945 – China (vs. Japanese)
1950-53 – Korean War
1955-75 – Vietnam
1957-75 – Laos
1965 – Dominican Republic
1968 – Laos & Cambodia
1975 – Angola
1983 – Grenada
1989 – Panama
1991 – Gulf War
1992-96 – Bosnia and Herzegovina
2001-present – Afghanistan
2003-present – War in Iraq

Moreover, since the end of World War II our military, led by the Central “Intelligence” Agency, has overthrown numerous democratically-elected leaders throughout the world. As a result of this incessant meddling, millions have been imprisoned, tortured and killed. For example:

1953 – In Iran, the CIA overthrew democratically-elected Mohammed Mossadegh and replaced him with a brutal dictator, the Shah of Iran.
1954 – In Guatemala, the CIA overthrew democratically-elected Jacob Arbenz after he threatened to nationalize the United Fruit Company, in which CIA Director Allen Dulles owned stock. The right-wing dictators who replaced Arbenz killed more than 100,000 Guatemalans.
1957-73 – In Laos, the CIA carried out approximately one coup a year trying to nullify Laos’ democratic elections.
1959 – In Haiti, the U.S. military helped “Papa Doc” Duvalier become dictator.
1961 – In Dominican Republic, the CIA assassinated Rafael Trujillo, a brutal dictator supported by Washington. But only after his business interests began competing with our own.
1961 – In Ecuador, CIA-backed military forced democratically-elected President Jose Velasco to resign.
1961 – In Congo (Zaire), the CIA assassinated democratically-elected Patrice Lumumba.
1963 – In Dominican Republic, the CIA overthrew democratically-elected Juan Bosch and installed a repressive, right-wing junta.
1963 – In Ecuador, CIA-backed military overthrew President Arosemana. A military junta assumed command and began abusing human rights.
1964 – In Brazil, a CIA-backed military coup overthrew democratically-elected Joao Goulart and replaced him with a brutal junta.
1965 – In Dominican Republic, a popular rebellion tried to reinstall Juan Bosch. The revolution was crushed by CIA-led U.S. Marines.
1965 – In Indonesia, the CIA overthrew democratically-elected Sukarno. His successor, General Suharto, massacred 500,000 to 1 million civilians.
1965 – In Greece, with CIA backing, the king removed George Papandreous as prime minister for failing to support U.S. interests in Greece.
1965 – In Congo (Zaire), CIA-backed military installed Mobutu Sese Seko who exploited his country for billions.
1967 – In Greece, CIA-backed military overthrew the government two days before elections. The ensuing “reign of colonels,” backed by the CIA, tortured and murdered political opponents.
1967 – In South Vietnam, the CIA helped identify and murder 20,000 alleged Viet Cong leaders.
1969 – In Uruguay, notorious CIA torturer Dan Mitrione ascended to power becoming so feared that revolutionaries kidnapped and murdered him a year later.
1970 – In Cambodia, the CIA overthrew popular Prince Sahounek and replaced him with Lon Nol. The move strengthened the Khmer Rouge, which rose to power and massacred millions.
1971 – In Bolivia, CIA-backed military overthrew leftist President Juan Torres. He was replaced by Hugo Banzer who had more than 2,000 political opponents arrested, tortured, raped and executed.
1973 – In Chile, the CIA assassinated democratically-elected Salvador Allende. He was replaced by General Augusto Pinochet, who tortured and murdered thousands of his own countrymen.
1975 – In Angola, the CIA helped launch a war killing more than 300,000 Angolans.
1979 – In Nicaragua, following the fall of CIA-backed Anastasios Samoza II, the remnants of his personal National Guard became the Contras, who fought a CIA-backed guerilla war against the Sandinista government.
1980 – In El Salvador, following the murder of Catholic Archbishop Oscar Romero, the country dissolved into civil war. CIA-trained death squads roamed the countryside, committing atrocities and killing 63,000 Salvadorans.
1983-89 – In Honduras, the CIA taught Honduran military officers how to torture people. The notorious “Battalion 316” used the techniques on thousands of leftist dissidents.
1986 – In Haiti, following the exile of “Baby Doc” Duvalier, the CIA rigged elections in favor of another right-wing military strongman. The CIA-created National Intelligence Service (SIN) suppressed popular revolt through torture and assassination.
1990 – In Haiti, after leftist priest Jean-Bertrand Aristide captured 68 percent of the vote he was deposed by CIA-backed military which brutalized the country.
1993 – In Haiti, as chaos grew, military dictator, Raoul Cedras, is removed on threat of U.S. invasion. Aristide is returned to power only after being forced to accept an agenda favorable to the country’s ruling class.

Here’s an idea. If Americans are as serious about wanting peace as most claim, maybe we could stop meddling in the internal politics of other nations. Then we could take half of our massive defense budget to solve real problems like poverty, climate change, diminishing energy resources, air and water pollution, and health care.

But given our propensity for war, that will probably be viewed as unpatriotic.

Why President Obama Can’t Fix The Economy.

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It’s not his fault. And it’s not for lack of trying. But he’s dealing with a stacked deck.

For decades, the cornerstone of the US economy has been durable goods, driven primarily by housing starts. In other words, our economy has depended mostly on housing construction.

For example, in 2004, more than 2 million home-building permits were authorized nationwide. In 2005, the number had risen to more than 2.1 million. Then in 2007, the number dropped to less than 1.4 million. By 2009, the number was just 583,000. And even though the number increased to more than 604,000 last year, you can see that it’s only slightly more than a third of the annual building permits from just prior to the Great Recession!  And half the number in 1959!

Now think of what those numbers mean. Each of those permits requires building contractors, carpenters, electricians, plumbers, roofers, sheet rockers, flooring contractors and more. In addition, the homes need new appliances, furnaces, air conditioners, cabinets, light fixtures, plumbing fixtures, garage doors, etc.

Get the picture?

When the financial giants swindled billions from American homeowners, they destroyed confidence in homeownership. And, as the same crooks are now disposing of their inventory of foreclosed homes, they are driving down home prices which puts more homeowners in foreclosure and prices drop even farther. The end result is massive unemployment. And, if you’re unemployed, what’s the last thing you’re going to do? That’s right. The last thing you want to do is buy a home.

So what’s a President to do after the real estate industry has been driven off a cliff? The problem certainly wasn’t of President Obama’s making. Indeed, his administration has done Herculean work getting things moving back in the right direction. But he needs to do more. He needs to push for additional stimulus that will create more jobs which will encourage more people to buy homes which will create even more jobs.

But don’t hold your breath. Because, in addition to the GOP (Grand Obstructionist Party) in the Senate, he’s now faced with a Republican/Teabagger majority in the House. And all of them are determined to deny him another term in office.

If you think you hear the faint strains of Nero fiddling, you can be certain that he’s now a Republican.

Republican Agenda Has Never Been More Clear.

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Following the vote by House Republicans to cut Medicaid and turn Medicare into a certain-to-fail voucher system, Senate Republicans filibustered a bill that would end oil subsidies to the most profitable companies on Earth.  They followed that by doing the same to a bill that would end subsidies for Ethanol.

In doing so, Republicans have made it abundantly clear that they don’t care about cutting the deficit.  Not really.  If they did, they would gladly trim these subsidies from our budget resulting in savings of billions of dollars.

As evidenced by their assault on Medicare, Medicaid, Social Security, unemployment insurance, education, women’s health providers, the environment, labor unions, first responders and teachers, they certainly don’t care about ordinary citizens.

What Republicans do seem to care about is protecting the profits of their corporate masters. You know, the large corporations that were given all the rights of citizens by the conservative-dominated Supreme Court so they could anonymously spend millions to elect Republican candidates.

The connection couldn’t be more obvious.

One man’s solution for Medicare and the health care crisis.

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Now that House Republicans have voted to end Medicare and Medicaid as we know them, I believe it’s time to look at the real problems with the system. In addition to Medicare fraud, many of the problems are structural. Not with Medicare. But with the health care industry itself.

Unless the skyrocketing costs of health care are controlled, we will not be able to fix our social insurance programs such as Medicare. Moreover, we will not be able to control our deficits. That is precisely why President Obama and the Democratic Congress chose to focus on health care reform in 2009. Unfortunately, the resulting bill was a compromise with Republicans hell-bent on protecting the insane profits of the health insurance industry and PhRMA (Pharmaceutical Research and Manufacturers of America).

Therefore, I humbly offer the following suggestions for consideration:

1 – Create a medical triage system with the entry point being Board Certified Family Nurse Practitioners, rather than MDs. These people are Registered Nurses with additional education and training. They are more than capable of identifying and treating the majority of illnesses and symptoms, as well as writing prescriptions, and they can refer patients to a physician or specialist as needed. However, they are billed at a lower rate than physicians. Implemented nationally, this system could save millions, if not billions, of dollars.

2 – Encourage patients to call medical professionals more often. Ignoring symptoms usually doesn’t make them go away. Patients of all ages tend to avoid talking to medical professionals until they absolutely have to. This often results in illnesses being allowed to advance which, in turn, makes them more difficult (and expensive) to treat. All patients should be encouraged to call or visit with Nurse Practitioners whenever they notice a change in their bodies or a symptom of concern.

3 – Eliminate unnecessary tests and treatments. Currently, (some) doctors order a battery of lab tests and treatments in order to maximize their profits. They also claim to do this as a defensive measure against potential malpractice suits. I believe it’s time to recognize that everyone makes mistakes (including health care professionals). We should try to limit the number of malpractice suits and the size of the awards. At the same time, the medical profession needs to more aggressively weed out those who are responsible for the most egregious errors.

4 – Regulate the cost of pharmaceuticals. Currently, Big PhRMA is able to charge whatever it wants for its products. In some cases, the mark-up on pharmaceuticals is astronomical. An inhaler used by millions of Americans costs $38-$40 in the US. But in other countries, its price is as little as 5 cents!

5 – Create incentives for family practice physicians. Too many of our medical students focus on specialties that offer the greatest return on the investment of their medical education. They reason that, since they will be faced with the daunting task of paying off tens of thousands of dollars in loans, they should choose the specialty that pays the most and faces the least probability of legal issues. As a result, the percentage of family practice physicians and OB/GYN physicians is dwindling. This could be fixed by offering more government scholarship awards and tax benefits to those who choose the traditionally lower paying specialties.

6 – Eliminate the need for the poor and uninsured to use Emergency Rooms for primary care. We’ve all heard stories of people who call an ambulance in order to be transported to the ER to be treated for a common cold. Of course, since many of these people can’t afford to pay for their care, the costs are absorbed by the hospital and passed on to other patients.

Recognizing that many of the stories are likely exaggerated, it is true that people go to the ER when a simple visit to a doctor’s office would suffice at a fraction of the cost. But rather than complain about the phenomenon, we should look at the cause. Often it’s simply because these people don’t have ready access to any other form of care. By creating more and better access such as clinics staffed into the night by Nurse Practitioners, people would be encouraged to seek care through more appropriate means.

7 – Demand that health care providers publish outcomes for the most serious ailments and treatments, and encourage patients to seek out the most successful providers. It is a well-accepted fact that it is less expensive to seek treatment from the most successful providers, even if that means traveling out of state. There are fewer complications and patients tend to recover faster.

8 – Last, and most important, take the profit out of the health care industry for those who aren’t directly involved in providing care. In other words, contrary to Republican beliefs, eliminate the middle men (insurance companies) and allow the government to finance care through taxes and/or withholding. I’d much rather have the government determine the accessibility of medical care than large corporations whose primary goal is to limit care in order to maximize profits.

The growing hole in our economy.

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For the past two years, the Obama administration has been trying to reduce unemployment. And, given the challenges, it has been remarkably successful.

Following the Bush/Cheney administration, President Obama faced an economy that had jettisoned nearly 8 million jobs. Despite Republican opposition, the Obama administration has managed to turn things around. Certainly it has not happened as fast as most people would like, and the unemployment numbers are not as good as we would like to see, but the stock markets have recovered and the economy has added 854,000 private sector jobs in 2011 alone.

At the same time, state and local governments have cut 86,000 jobs this year alone.

As a result of the reduced revenue created by the Great Recession, the Bush tax cuts, and the out-of-control costs of health care for government workers, the loss of government jobs threatens to throw our economy back into the abyss. And the Teapublicans, who were elected in 2010 with the stated purpose of creating jobs, are doing everything in their power to push the economy over the cliff.

You see, instead of focusing on job creation, Teapublicans have focused, instead, on social issues such as gay marriage, abortion and collective bargaining. They are determined to eliminate funding for NPR, Public TV, the National Endowment for the Arts, the Dept. of Education, the EPA and Planned Parenthood. They want to end or dramatically change “entitlements” such as Medicaid, Medicare, and Social Security. And they want to cut government spending by the trillions.

If successful, they will push tens, perhaps hundreds, of thousands more people into unemployment, eliminating government jobs at a rate faster than the private sector can create them. And who will receive the blame for their actions? Certainly not Teapublicans themselves. No, the conservative media will focus the blame on President Obama. You know, the foreign-born black Muslim who was only able to gain office thanks to voter fraud and “lame stream” media.

Does that mean I’m accusing Teapublicans of sabotaging our economy for political purposes? In a word, yes. Republicans have done it before, why should we expect a different approach this time?

Social Security Is Not An Entitlement. It’s A Safety Net.

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Shamed by scenes of the elderly living in abject poverty following the Great Depression, Congress passed the Social Security Act which was signed into law by President Franklin Roosevelt on August 14, 1935.  At the time, poverty rates among senior citizens exceeded 50 percent.

Since that time, millions of Americans confronted by old age, poverty, disability and unemployment have benefited from the act. 

Although Republicans, and more recently, the media have labeled Social Security with the perjorative term “entitlement” it is simply a form of insurance defined by actuaries as a government-sponsored insurance program funded by premiums paid by or on behalf of participants.  Indeed, the FICA withholding you see on your paycheck stands for “Federal Insurance Contributions Act”.  These contributions represent less than six percent of an individual’s annual income up to $106,000 per year.  Any income above $106,000 is exempt from withdrawals. 

Fact is, Republicans have been opposed to Social Security from the beginning, claiming that it would cause a loss of jobs.  Obviously it didn’t.  And the new deficit “crisis” has provided Republicans with arguments to dramatically change or end the program now.  Many want to replace it with individual investment accounts, feeling that they could better ensure their retirement by investing their FICA withdrawals themselves.  First, the benefit payments from an insurance program like Social Security should never be compared to the returns on investment accounts.  Moreover, replacing Social Security with individual investment accounts could be disastrous for many seniors in the event of another economic depression or a repeat of the Great Recession of 2008.  If the stock markets plummeted, the retirement incomes of most seniors would crash with them. 

So how about the solvency of Social Security?  Currently, the program has a $2.5 trillion surplus.  Remarkably, administrative costs of the program account for less than one percent of its total.  However, due to the impending retirement of Baby Boomers, it is estimated that the program will not be able to make full benefit payments in 25 or 30 years.   But the program is not “broke.”  Indeed, it can be fixed with relatively minor tweaking.  One option is to raise the cap on income as the Reagan Administration did in the 1980s.  Removing the cap altogether would definitely solve the problem as would limiting benefits to only those who actually need them – those retirees with annual household incomes of less than $50,000, for example.

Contrary to those who want to “end the entitlements”, the facts show that dramatically changing Social Security or ending the program entirely could be devastating for our nation.  The majority of beneficiaries have little significant income from other sources since options such as employer-provided pension plans are virtually non-existant today.  Additionally, the benefits from our Social Security program already lag behind most other advanced countries.  The Organisation for Economic Cooperation and Development (OECD) ranks the U.S. 26th out of 30 OECD nations.  On average, OECD nations replace 61 percent of a retiree’s earnings with pension plans.  In the U.S., the number is roughly 40 percent.

Now it’s the First Responders’ fault.

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First it was teachers who the Teapublicans blamed for our deficit woes. Now it’s firefighters and police.

In Republican budgets from the House of Representatives to the state houses, budgets for first responders are being slashed. Worse yet, thanks to an amendment by a Florida Republican, the 9/11 first responders are now being subjected to a test of patriotism before the government will accept claims for medical conditions acquired while digging through piles of rubble in search of bodies!

Apparently, some Republicans are concerned that some of these people are terrorists!!! So before voting for a bill that would pay for the medical claims of the 9/11 first responders, they attached an amendment that requires a search into the first responders’ past to make sure they weren’t complicit in the terrorist attacks.

Seriously! You can’t make this stuff up!

Congress is actually questioning the patriotism of the people they once hailed as heroes for rushing into the Twin Towers to help others escape. The very same people who were awarded for bravery by the Bush administration and the Republican-controlled Congress.

Who will they go after next? Grandma and Grandpa? Oh, no…they wouldn’t…would they? Well, who needs Medicare and Social Security anyway? Right?

Maybe the best way to fix the deficit is to do nothing.

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While the government and the media debate the pros and cons of President Obama’s and Congressman Ryan’s competing deficit reduction plans, Ezra Klein of the Washington Post suggests another possibility.  Do nothing.

That’s right.  Do nothing to address the deficit and growing national debt!

Using a graph based on the Congressional Budget Office’s September numbers, Klein shows what will happen if Congress fails to act.  Our national budget would begin to balance itself in two years.  And despite the so-called “crises” of Social Security, Medicaid and Medicare, the budget would remain balanced into the forseeable future.

Given the doom and gloom scenarios of the teabaggers and their Republican allies, how is this possible?

It’s the result of allowing the Bush tax cuts to expire at the end of their 2-year extension, implementing the program that changes the way doctor payments are handled in Medicare, and allowing the Affordable Care Act (so-called Obamacare) to be fully implemented.

That’s it!  No privatizing Social Security, no ending Medicaid and no changing Medicare to a voucher system that will likely drive up the cost of health care while dramatically adding to the insurance industry’s bottom line.  All we have to do is keep the politicians from further messing things up!  (Of course, it wouldn’t hurt if we could stop bleeding money and lives in Iraq and Afghanistan.  It’s estimated that those wars have already cost us as much as $3 trillion.  A number that’s increasing by the day.)

Remember this as the debate over the deficit escalates between now and the 2012 election.  The choice is likely to be between a Republican plan of pulling the safety nets out from under our most vulnerable citizens while lining the pockets of the wealthy.  Or enacting President Obama’s plan which will reduce the deficit while continuing to care for the poor, the sick and the elderly.  Or doing nothing and returning to Clinton-era tax rates.Personally, I vote for one of the last two options.  After all, unless my memory fails me, the decade of the 90s was prosperous for most everyone.  Not just the super-wealthy.

What will be the Boomers’ legacy?

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The generation that began with so much promise – helping to improve civil rights, volunteering for the Peace Corps, and forcing an end to the Vietnam war – is now at a crossroads.  As we reach retirement age, the Baby Boomer generation has to consider what our legacy will be.  Will we be remembered for the aforementioned accomplishments?  Or will we be remembered for unparalleled greed, selfishness and hate?

The answer depends on what we do next.

You see, I believe that Boomers have enjoyed advantages few other generations have.  Unlike our parents, Boomers have enjoyed relative peace and prosperity.  Most of our parents worked hard and scrimped to send us to college in record numbers.  Many of our parents passed along modest estates.  And, unlike our parents, we didn’t face great economic hardships until late in our careers when our retirement funds should have been nearly complete.

Our generation has enjoyed rising salaries, inexpensive food, and inexpensive energy.  Our taxes have been lower than previous generations, so we have had the opportunity to keep more of our earnings.  We have had more machines to help with our labor.  We have had more leisure time.  We have traveled more.  And we have had more options for entertainment.

The real question is, what have we accomplished as a result of all these advantages?

We have consumed a disproportionate amount of the world’s resources.  We have polluted the planet, resulting in dramatic climate change.  We have failed to address poverty and hunger in our own country, let alone around the world.  And though we contributed to the end of the Vietnam War and the Cold War, we have opened new battlefronts in the Middle East to protect our oil interests.

So now what?  As we reach retirement, will we display the greed and contempt for the poor as the Tea Party has done?  Or will we devote at least some of our retirement to charity?  Will we help end poverty in the U.S. and the world?  Will we make health care affordable for all – not just the wealthy and the connected?  Will we find ways to curb pollution?  Will we force our corporations to pay their fair share of taxes and create jobs in our own country?  Will we finally level the playing field for minorities and women?  Will we find ways to end homelessness in our own nation – find shelter for the approximately 2 million homeless children?  Will we contribute to the rebuilding of our crumbling infrastructure built at such sacrifice by our parents and grandparents?  And will we properly fund education, so our grandchildren and great-grandchildren will have many of the same advantages we enjoyed?

Our generation has the education, knowledge, experience and resources to accomplish great things and to achieve a legacy comparable to “The Greatest Generation.”

But, although I’m hopeful about our generation’s legacy.  I’m not optimistic.