Category Archives: Economy

A Culture of Blame.

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The recent standoff in Wisconsin raises some unpleasant questions about American society.  Why do we now blame union workers and their pensions for our economic troubles?  Certainly, public employees who make around $50,000/year aren’t getting rich off of taxpayer money.  And why blame foreclosed homeowners for the housing crisis?  Surely they didn’t benefit from purchasing a home for more than its current value and being forced to move.  And how can anyone logically blame the Obama Administration for an economic meltdown that occured before the President took office?

My point is that there is plenty of blame for our problems to go around starting with deregulation, two unfunded wars, unnecessary tax cuts for the wealthy and the greed of Wall Street bankers.  But why focus on blame?  Wouldn’t we all be better served by spending our time trying to find solutions to our current problems instead?

Of course, those who committed illegal acts, if any, should pay for them.  But we should let our legal system address those people.

As for our economy, our deficit can easily be reduced by rescinding tax cuts for the nation’s wealthiest Americans.  We could create high-paying jobs in the U.S. by ending tax incentives for the corporations that send jobs overseas, and by adding tariffs on goods made outside the U.S.  We could generate more revenue by lowering the tax rate on corporations while, at the same time, removing corporate tax loopholes.  We could generate revenue for our state and local governments by ending corporate welfare such as Tax Increment Financing.  We could cut costs by refusing to help the billionaire owners of professional sports franchises pay for palatial new arenas.  We could increase innovation by improving public education and providing small businesses with the same tax advantages as large corporations.

We could save businesses and individuals billions of dollars by creating Medicare for all and hiring enough regulators to eliminate fraudulent claims.  We could save billions by de-criminalizing drugs and ending the so-called “War on Drugs” which has put thousands of non-violent people in prison to learn new skills from hardened criminals.  We could save billions by using our prison system to educate and reform those who would benefit instead of merely warehousing inmates until we’re forced to release them.

We could finally end our dependence on oil by eliminating taxpayer subsidies to big oil companies and spending the same amount of money on alternative sources of energy.  Most important, we could reform our political campaigns by holding political ads to the same truth-in-advertising standards as ads for products and services.  If they don’t tell the truth, the politicians must be removed from office and new elections held as they are in Great Britain.

Of course, you could continue to assume that significant changes like these are impossible.  But if our nation continues to fall behind others in education, health care and innovation, don’t blame me.

The Deficit Scam.

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In a Tea Party-based stupor, Republicans are locked in a battle with President Obama and Senate Democrats over cuts to the sizeable deficit.  Of course, rather than look at the real causes of the deficit, they continue to attack Democratic-supported institutions such as labor unions, Public Broadcasting, the Department of Education, Planned Parenthood, the health care reform bill and the so-called “entitlements” of Social Security, Medicare and Medicaid.  And, of course, they place most of the blame for the deficit on President Obama.Once again, the Republicans are dead wrong.

According to a report by the non-partisan Center on Budget and Policy Priorities, “…the economic downturn, the Bush tax cuts and the wars in Afghanistan and Iraq explain virtually the entire deficit over the next ten years.”

Even the costs of the stimulus bill and financial rescues have had relatively little impact on the deficit.  Again, according to the CBPP, “those costs pale next to other policies enacted since 2001 that have swollen the defict.”  The CBPP report continues, “Just two policies dating from the Bush Administration – tax cuts and the wars in Iraq and Afghanistan – accounted for over $500 billion of the deficit in 2009 and will account for almost $7 trillion in deficits … through 2019, including the associated debt-service costs.”

The truth is that the current Republican initiatives to cut the deficit are a ruse.  They are merely driven by ideology in an attempt to strengthen their hold on public office.  There are only three ways to cut the deficit without harming the middle class and the most vulnerable people in our society:  Cut our bloated defense budget designed, not just to protect us, but to force our will on the rest of the world.  End corporate welfare such as the obscene subsidies for Big Oil.  And raise taxes on those who can most afford it, such as the 400 Americans who control 50 percent of the nation’s wealth.

If you’d like to read the entire CBPP report for yourself, follow this link: http://www.cbpp.org/files/12-16-09bud.pdf

The beginning of the end of Democracy in the U.S.

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Yes, I know that probably sounds alarmist.  But consider the following:

1- The Citizens United ruling by the Supreme Court gave corporations the free speech rights of individuals.  The effect is to make them super-citizens allowing them to inject tens of millions of dollars into our political campaigns with virtually no oversight.  This, of course, greatly benefits the Republican Party which represents the interests of large corporations.

2- Ohio, Wisconsin and other states which are now controlled by Republican governors and Republican-led legislatures have attacked labor unions in order to limit their bargaining rights.  Of course, it’s only coincidence that labor unions are the last remaining large contributors to Democratic Party election campaigns.

3- Republicans at all levels of government are pushing legislation that would de-fund Planned Parenthood, another traditional contributor to Democratic campaigns.

4- Republicans are pushing to de-fund Public Broadcasting which they see as liberal-leaning media that ask too many difficult questions.

5- Finally, many of the states controlled by Republican governors and Republican legislatures are now pushing legislation that would require state-issued IDs in order to vote.  While seemingly innocuous, these IDs would prevent many college students and minorities from voting in their states.  Again, it’s merely coincidence that college students and minorities most often vote for Democratic candidates.The impact of all of this is to greatly increase campaign funds for Republican candidates and to decrease available funding for Democratic candidates.  These tactics would also serve to disenfranchise Democratic-leaning voters and to quiet independent media that refuse to adhere to Republican talking points.

This is a serious threat, folks!  We can’t allow Republicans and their corporate masters to continue to stack the deck against working citizens.  Speak up!  Ask your Republican friends why, if their political ideas are so great, do they have to resort to trickery and bullying tactics in order to push them on ordinary people?

GOP Asks You To Sacrifice On Behalf Of The Wealthy.

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The new crop of Republican deficit hawks are seeking billions of dollars in cuts to education, health care, public broadcasting, environmental protection and pension funds.  “It’s necessary for everyone to sacrifice in order to reduce the deficit,” they say.

Funny that they’re not asking the wealthy or large corporations to do the same.

Indeed, $70 billion of the deficit consists of the Bush era tax cuts for the wealthy.  And large corporations?  In addition to their ever-lower taxes (Cutting taxes on corporations creates jobs, don’t you know?), they enjoy a raft of tax loopholes, tax incentives and outright subsidies.  For example, the world’s most profitable companies (Big Oil) are actually paid to search for oil.  And we provide grants to universities to create new and better pharamceuticals.  Then we allow the large pharamceutical companies to patent the new drugs and sell them to our population at obscene prices.

So when you hear Republicans talk about sacrifices, ask them what sacrifices they’re willing to make.  Are they going to opt out of their government paid health care?  Are they going to cut their salaries?  Are they going to raise taxes on the large corporations that contribute to their political campaigns?

You know the answer.

The Real Reagan Legacy.

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On the occasion of Ronald Reagan’s 100th birthday, Republicans and other conservatives simply could not contain their myopic admiration for “The Great Communicator.”  In reality, he should have been called “The Great Propagandist.”  Or, perhaps, “The Great Bullsh***er.”

For, I believe, the collapse of the middle class can be traced directly to the decisions made during his terms in office.  Take the assault on labor unions.  It was Reagan who decided that he could not be troubled with the PATCO strike.  So he fired most of the nation’s air traffic controllers and replaced them with new, more obedient controllers.

Or take “Reaganomics,” AKA “Voodoo Economics” and “Trickle-down Economics.”  Under Reagan, the administration began the biggest transfer of wealth in the nation’s history.  All upward.

He began by paving the way for interstate banking, which effectively did away with usuary laws that limited the interest rate banks could charge for loans.  And he ended tax deductions for the interest paid on loans.  (For those too young to remember, prior to Reagan, all of the interest paid on loans for education, cars, credit cards, etc. was tax deductible.)  The effect was to enact a huge tax increase on the poor and the middle class while, at the same time, cutting taxes for corporations and the wealthy.

Reagan’s economic disciples, such as George W. Bush, have not only further cut taxes for corporations and the wealthy, they have continued the assault on labor unions by providing tax incentives for corporations to ship jobs overseas.  They have dramatically cut the estate tax and capital gains taxes.  They have provided subsidies for some of the world’s most profitable corporations – oil and pharamceutical companies.  They have attacked Social Security, Medicaid, Medicare and even public education as “entitlements.”  And people like Wisconsin Governor Walker are trying to put an end to collective bargaining.

The result of the policies of all these Reaganophiles is that the 400 wealthiest people in the nation now control 50 percent of the nation’s wealth.  To be clear, that means 400 people now have as much money as the bottom 110,000,000 Americans combined!  Even Reagan’s own budget director now admits that “Reaganomics” was a disaster for the middle class.

So pardon me if I choose not to celebrate the Reagan legacy.  To me, that would be akin to celebrating the legacy of influenza.  Or measles.  Or polio!

Arizona Leads U.S.

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It’s true.  The state of Arizona is leading the nation.  Just not in a good way.

For example, we have one of the nation’s worst economies.  Our schools, home prices, and poverty rank among the nation’s worst.  Our gun shows lead the nation in exporting weapons to the Mexican drug cartels.  And, based on the actions of our state legislature, we must have more non-institutionalized lunatics than any other state in the union.  (Of course, if said legislators have their way, we may not be part of the union much longer.)

To elaborate, just consider the bills currently pending in a legislature that is overwhelmingly dominated by Republicans:

SB1433 would set up a committee of 12 lawmakers (of course, they would be mostly Republican) to review federal laws and regulations to determine which are “outside the scope of the powers delegated by the people to the federal government in the U.S. Constitution.”  If passed, the legislation would directly challenge federal supremacy as written in Article 1, Sections 8 & 10 of said Constitution.

SB1308 and HB2562 would limit federal authority setting up interstate compacts to honor each others’ birth certificates segregating children who are considered U.S. citizens from those who are not.

SB1309 and HB2561 would redefine Arizona citizenship in defiance of the 14th Amendment of the U.S. Constitution.

SB1328 would make it legal for Arizonans to defy any federal law or rule if federal employees or members of Congress do not have to comply.

SB1391 would create an interstate firearms freedoms act guaranteeing the right of citizens to bear arms free of federal regulation.

SB1393 declares that the state has the exclusive right to regulate carbon dioxide emissions within the state boundaries while SB1394 protects the right to emit carbon dioxide from human-caused activity.

SB 1545 would allow the production of nuclear fuel in Arizona free from federal regulation.  (It’s unknown if that also includes the production of nuclear weapons.)

SCR1016 would require the approval of the legislatures of half the states in order for Congress to increase the federal debt.

HB2077 requires any federal agency coming into an AZ county to first register with the county sheriff before conducting official business.

HB2471 would bar the appropriation of any state funds to comply with a federal mandate unless the federal government provides a report to show the mandate is constitutional.

HB2472 would allow the state to acquire federal property by eminent domain unless the federal government first receives permission of the state legislature.

HB2537 permits the AZ house speaker and senate president to defend last year’s SB1070 immigration law by lawsuit if necessary.

HB2544 requires U.S. presidential candidates to provide certain proof of citizenship before they can appear on the ballot in Arizona.

HCR2015 calls for a constitutional convention to adopt an amendment to require the consent of three-fourths of the states to increase federal debt.

HCR2022 proposes a constitutional convention to require a balanced federal budget.

On top of all this, the state attorney general has just announced that he is suing the federal government for not defending the border against illegal immigrants and drug smugglers.  (I guess more than 10 border agents per mile doesn’t qualify as a defense.)  Amazingly, it seems that Arizona Republicans are more interested in attacking the U.S. government than dealing with the very real problems in our own state!  Can’t you just picture Nero fiddling while Rome is burning?

Self-Inflicted Pain.

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Beginning with the Reagan administration, the U.S. has, in effect, taken out its very large supply of guns, taken careful aim and shot itself in the foot.  Of course, I’m speaking metaphorically, but the damage to our nation is very real.

The Reagan administration’s notion that you could dramatically increase defense spending, increase corporate welfare, demonize unions and cut taxes has had a devastating and lasting impact on our country.  It’s because of Reaganomics that our deficits and national debt began to spiral out of control.  Even Reagan’s own budget director has since labeled Reagan’s economic policies a failure.

Of course, the Repugnants, aka right-wing Republicans, are fond of blaming our deficits on Democrats.  But that’s revisionist history.  Under Reagan and Bush The Elder, the deficits reached new heights.  Clinton and, in fairness, a Republican-led Congress, turned those deficits into surpluses.  Then Bush The Junior turned the entire economy upside down by pursuing two unfunded wars, lowering taxes and deregulating Wall Street.  In order to save us from a world-wide economic collapse, President Obama had to increase spending by providing loans to banks and automakers.  He also, for the first time, included the cost of the wars in Afghanistan and Iraq in his budget.

Republicans have seized on those actions to unfairly blame Obama for the deficits.  Now they want to use the deficits to undo all of the nation’s safety nets for children, the poor, the ill and the elderly.  At the same time, they continue to call for further tax cuts for the wealthy.  (Never mind that our taxes are now the lowest in 60 years.)

There is, of course, an alternative to what Bush The Elder once referred to as “voodoo economics.”  As the economy continues to improve, we could raise taxes back to pre-George W. Bush levels and close the enormous tax loopholes that have been exploited by large corporations.  At the same time, we could reduce the out-of-control defense budget and use a portion of the savings to create jobs by rebuilding our factories and infrastructure.

But if that makes sense to you, don’t hold your breath.  As long as those large corporations and defense contractors are allowed to fund the campaigns of Congressional Representatives and Senators, it’s not likely to happen.

Arizona’s SB1070 7 Months Later.

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In April of this year, Jan Brewer signed Arizona’s controversial anti-immigrant bill into law.  It was hailed by conservatives far and wide as a great first step in closing our border to keep Mexicans from taking our jobs and using our services.  And at least 12 more states are considering similar legislation.

So how is 1070 actually working out?

In the 7 months since its signing, many of the most controversial parts of the law have not yet gone into effect, and the state has spent more than $10 million to defend the law in courts.  An estimated 100,000 undocumented workers have fled the state to find jobs elsewhere, taking with them the money they paid for rent, clothing, groceries, gasoline and more.  A very conservative estimate of the financial loss to the state would be somewhere in the vicinity of $4 million.  And their contributions as a workforce to the state could be estimated at more than 10 times that.  In addition, the law has led to boycotts from other states and cities which has already cost our tourism industry more than $141 million.  Add to that the jobs lost in the tourist industry and the cost rises to more than $250,000.  Based on the latest estimates, the new law has cost Arizona nearly $500 million!

“But certainly the state has seen some benefits from the law, too,” you say.

Not really.  It has served to create distrust between Arizona’s white population and Latino population.  The law has turned many other states and cities against us.  And the drug war still rages along the border, fueled by American guns and our insatiable appetite for illegal drugs.

The only ones who seem to have benefited from the law are Jan Brewer, John McCain, Russell Pearce, and other right-wing Arizona politicians who used scare tactics related to the law to get themselves re-elected.  Which is no doubt the over-riding reason for passing the law in the first place.

Okay, Republicans, now what?

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You lied, cheated and spent your way into control of the House of Representatives.  You took control of more governors’ offices.  And you took control of 19 more state legislatures.

Much of your success was the result of massive corporate donations and your filibustering of legislation that could have helped turn this economy around – the economy that collapsed on your watch due to your lack of oversight and regulation.  Remember?

You blamed your mess on President Obama, Nancy Pelosi and Harry Reid.  Then you talked about “taking your country back,” resorting to 2nd Amendment remedies, if necessary.

You won on promises of less government and lower taxes.  So what next?

Plan to cut the size of government?  Maybe you haven’t noticed, but the downsizing of state, county and local governments is one of the primary reasons our economy is so slow to recover.  We’re losing government jobs faster than private industry can add jobs.  Moreover, the lack of government oversight of Wall Street is one of the main reasons we’re in this predicament.

Plan to cut taxes by renewing the ill-conceived Bush tax cuts for the wealthy?  Then plan on adding $80 billion to our deficit over the next two years.  Want to repeal “Obamacare?”  Then plan on adding yet another $138 billion to our deficit over the next 10 years.  (Not to mention the fact that you’ll be denying health care access to more than 30 million Americans.)

Plan on cutting the deficit?  You could cut half of our bloated $663.7 billion defense budget (not including the Iraq and Afghan wars).  But what will you do about the defense contractor jobs you eliminate?

The most radical Republicans talk about eliminating or privatizing all “entitlements” such as Social Security, Medicare and Medicaid.  They want to get rid of the Department of Education, the Environmental Protection Agency, and the National Science Foundation, as well.  All of that combined would save $1.48 trillion a year, completely offsetting the deficit and leaving us with a surplus of more than $200 billion each year (not including tax cuts for the wealthy, rising health care costs, increased military spending and increased border security).

But we’d have a nation of uneducated, unheathy children and heavily-armed, destitute senior citizens.  Try running on that platform in future elections.  Or will you do as some Tea Party candidates suggest, and limit voting to landowners or those already in office?

How Much Is Your Vote Worth?

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$100? $1,000? $10,000? More? This year, corporate and foreign-funded shadow groups seem willing to spend whatever it takes to convince you to vote Republican.

Unfortunately, you won’t get to pocket the money.  But, thanks to the Supreme Court decision in the Citizerns United case, corporations (both domestic and foreign) are now able to pour hundreds of millions of dollars into advertising campaigns that attack Democrats. Even the Chamber of Commerce is getting into the act. The group has solicited large donations from businesses in China, Saudi Arabia, Dubai, Bahrain and other nations to spend on attack ads against Democratic candidates. Best of all, unlike the $20 donations you give to candidates, the corporations can give anonymously. The shadow groups don’t have to disclose the source of their millions.

Now you may be asking, “Why are corporations so willing to open their vaults for politics?”

The answer is obvious. They expect something in return. And, as always, Republicans stand ready to give it to them. Republican candidates promise to continue their fight against labor unions. They will continue to promote lower taxes for corporations and the wealthy. They are committed to eliminating pesky regulations that protect the environment and consumers. And they continue to attack so-called entitlements such as Social Security and Medicare.

This year, Republicans even offer a few new bonuses for their corporate masters. Many of the so-called Tea Party candidates on the Republican ticket have questioned the Constitutionality of the minimum wage and unemployment insurance. After all, who wants to waste money on a bunch of lazy deadbeats who can’t hold a job?)  Further, Newt Gingrich is even recommending that GOP candidates attack food stamps! 

If all this corporate money is able to buy enough votes, just imagine what that could mean for working people. American workers can look forward to lower wages, fewer benefits, unaffordable health care and no safety nets. Who wouldn’t want that?