Category Archives: Economy

If you think herding cats is difficult, try Democrats.

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The election of a Republican to fill Ted Kennedy’s seat in the U.S. Senate has clearly illustrated the disarray of the Democratic Party.  Despite holding the White House, the House of Representatives and a super majority in the Senate, Democrats have been either unable or unwilling to accomplish much of the agenda they campaigned for. 

Faced with a financial industry so greedy that it nearly caused the collapse of the international economy, Democrats have failed to institute new regulations to prevent future problems.  Faced with millions of unemployed, they failed to pass a stimulus bill large enough to create jobs.  Faced with mounting foreclosures, they failed to force lenders to restructure loans.  Faced with millions of uninsured and more than 33,000 deaths each year for the lack of access to health care, Democrats let Republicans and Tea Party wingnuts control the dialogue about health reform.  They publicly cut deals with insurance companies and big Pharma.  They allowed a few Congressmen to include more restrictive language on abortion.  They allowed one senator to kill the public option despite polls showing that a public option is favored by a significant majority of Americans.  And they allowed another senator to hijack the bill in order to gain major concessions for his state. 

It’s not that our nation’s current problems were created by Democrats.  They weren’t.  And it’s true that the Republicans, whose policies led to the problems, were determined to block any initiatives by Democrats.  But the fact remains, in one full year, Democrats were unable to solve them.  And given the fleeting attention spans of most voters, in their minds, these ongoing problems are now the fault of Democrats.   

So where does the party go from here? 

In my opinion, Democrats must take a lesson from Republicans.  When it comes to legislation, Democrats must act as if they’re joined at the hip.  They must craft legislation in caucus meetings and not present it to the public until they can all support it – without fear of defections.  They must better present their ideas to the public and explain their benefits.  And they must learn to be as ruthless as Republicans in trying to achieve their goals.  No more “gangs of six” that include Republicans trying to undermine the legislation.  Democrats can make it clear that they will work with Republicans, but only if Republicans are willing to work with them.

And the President must change his approach.  Although he obviously envisions himself a modern-day Lincoln who will pull together both parties and the nation, he must finally realize that you can’t achieve bi-partisanship when there is no “bi.”  He must realize that Republicans are serious about their desire to see him fail.  He must become more involved in legislation and more clearly set a path for his party.  He must become the leader we voted for. 

Failing these kinds of changes, we’re likely to see Democrats, and the nation, flounder.  If that happens, voters will believe the Democratic Party is incapable of governing.  And they will be right.

The Most Activist Court Ever!

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For years, conservatives and the religious right have decried what they considered “activist” Justices on Supreme Court.  They howled about the Roe v. Wade decision on abortion.  Indeed, they screamed about any decision that restrained anti-abortionists.  They whined about any decision that protected the rights of gays and racial minorities.  And they went ballistic over decisions that affirmed separation of church and state.  On radio and television, some evangelists even prayed (or should I say preyed) for liberal Justices to die so that George W. Bush could nominate more conservative Justices.

Today, the conservative Supreme Court committed its most activist action ever. 

By undoing decades of prior decisions that limited the role of corporations in political campaign, the conservative Court gave a blank check to corporate intervention in our elections.  More precisely, they created an environment that will provide blank checks to candidates who are willing to legislate on behalf of corporations.

Let’s say the financial industry wants to fight regulation (and it does) it may now take all of those billions of dollars in bonuses and spend them on advertising for candidates who are opposed to financial regulation.  Or, let’s say the insurance industry wants to fight health care reform.  The insurance companies may now spend billions on candidates who will fight for the status quo.

If you think those prospects are chilling, imagine the impact on candidates themselves.  Will any candidate or elected representative be willing to make decisions that could be perceived negatively by large corporations?  Doubtful.  It’s almost a certainty that our Congressional Representatives, already unduly influenced by corporate lobbyists, will obediently pander to those with the money and influence to affect their political future.

How will independent individuals compete?  The short answer is they won’t be able to.  Thanks to Chief Justice Roberts, Justice Scalia, Justice Kennedy, Justice Alito and Justice Thomas, corporations and organizations now enjoy free speech and, soon, you will not.  From this day forward, it will be a government of the corporations, by the corporations and for the corporations.

The Corporatization of America.

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Those on the political right incessantly condemn government while, at the same time, promoting “privatization” – another word for corporatization.  What they want is to eliminate all forms of public regulation and turn all of our government affairs over to large corporations. 

They have a good start.

In the U.S., our health care and pharmaceutical industries have long been privately-owned and controlled.  This despite the fact that taxpayers provide large research grants to these companies to help them develop their products.  And over the past 30 years, we’ve seen increased privatization and control of the food chain, schools, prisons, even the military.  The mercenary company, Blackwater (aka Xe), has become a household word for its role in Iraq and Afghanistan.  Indeed, some reports state that there are as many mercenaries working for the U.S. in those wars as there are government troops.  We’ve even seen our government award patents (and the resulting control) to corporations for genetic discoveries, including plant hybrids even though they were often subsidized by our government.  Perhaps the greatest threat of this privatization nonsense is to our water supplies. 

Appearing on Christiane Amanpour’s CNN program, Robert Kennedy, Jr. stated that this is becoming a very big concern throughout the world.  He stated that water is one of the biggest bargaining issues for peace between Israelis and the Arab world.  And, according to Kennedy, the issue we’re seeing in the Middle East is now becoming a very big issue in the western U.S.  For example, as the result of urban and irrigation pressures, the Colorado River now runs dry before it hits the ocean.  Lake Powell, which provides water for Las Vegas, is projected to be dry in 20-50 years.  In addition, much of the prime farmland in California now lacks water for irrigation because of the demand on reservoirs.  Of course, some suggest that the solution is to give control of water supplies to private corporations. 

This is a very bad idea.

This privatization stupidity has gone so far that some want corporations to take over public lands, public parks and public buildings.  In the state of Arizona, the Republican-controlled legislature has already cut millions from education, tourism and public safety in its attempts to balance the budget while simultaneously cutting taxes.  Yet those measures haven’t been sufficient.   So the Republicans are actually promoting legislation that would force the state to sell all state-owned public buildings to individuals or corporations and lease them back.  The result would be to literally hand billions to the buyers at the expense of the taxpayers who paid to build them.

If the choice is between a well-regulated government and greedy corporations (think AIG, Goldman-Sachs, BankofAmerica, et al), which would you want to control your fate? 

The cost of tax cuts.

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Everybody complains about paying taxes.  But Republicans and Teabaggers have turned their complaints into an art form.  Indeed, just last week, they were whining that the Obama administration allowed a number of Bush-era tax cuts to lapse.  Yet these people are the first to complain when our government entities don’t work as they expect.  Somehow, they seem incapable of seeing the connection. 

For the past 40-plus years, Republicans have been cutting taxes on the wealthiest U.S. citizens and U.S. corporations.  They’ve even cut estate taxes (the so-called death tax). 

All of this tax-cutting has had a profound effect on our infrastructure. 

Except in our largest cities, our highways haven’t been substantially improved since the 50s and 60s.  As evidenced by the bridge collapse in Minneapolis, many of our nation’s bridges are in woeful repair.  Contrary to popular belief, it wasn’t Hurricane Katrina that caused the disaster in New Orleans.  It was the U.S. Army Corps of Engineer’s archaic levee system.   And in California, another levee system responsible for much of Los Angeles’ water is eroding making it highly vulnerable to a catastrophic event. 

Our electric grid needs to be replaced.   Many of our largest cities’ sewer systems are collapsing.  Security at our airports is incapable of stopping all terrorists, and the security for our ports is much worse.  Our schools are falling behind those in many other nations.  And, unlike most wealthy nations, we can’t provide basic health care to all of our citizens (although that is, hopefully, about to change).

What’s the reaction of Republicans when faced with these facts?  Not surprisingly, they merely call for more tax cuts.

U.S. may soon be governed by a 3-party system.

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Democrats, Republicans and lunatics.

A new poll by NBC and The Wall Street Journal shows that the Tea Party is now more popular than both Republicans and Democrats.  The question is why.  What have the Tea Partiers done besides gather in relatively small noisy groups and wave obnoxious, racist signs?  Have the Tea Party leaders offered any suggestions to improve American lives?  Have they any recommendations to help those without health care?  Have they offered any real solutions for putting Americans back to work?  Have they put forward any regulations to reign in the greed on Wall Street?

You already know the answer.  The Tea Party leaders have nothing to offer but anger, accusations and snide remarks.  But they are dangerous.  Can you, for a hideous moment, imagine an administration led by President Palin and Vice-President Glenn Beck?  Can you even entertain the thought of Michelle Bachmann as Speaker of the House? 

Some people believe that, because the Mayan calendar ends on December 21, 2012, there will be an apocalyptic disaster that will mark the end of civilization.  I have never subscribed to that theory.  But if the Tea Party grows in popularity and American voters stupidly elect Sarah Palin as President in 2012, the theory may well prove to be true.

Why the recession is our own damn fault.

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Sure, it was the greed of mortgage-lenders and Wall Street that led to our recession.  But it’s consumers that are perpetuating it.  Most economists will tell you that recessions are mostly in the consumers’ minds.  If consumers are worried and reduce spending, our economy drops.  When consumers start spending, our economy rises.

Now, I understand that there are several overriding issues that led to this particular recession, not the least of which is the redistribution of wealth upward (10 percent of Americans now control nearly 71 percent of all U.S. assets).  Nevertheless, we have the power to fix it.

For one, we can vote for political candidates who are more concerned about ordinary citizens than the wealthy and the corporations that finance their political campaigns.

When possible, we can purchase American-made products.  Not just products with American brands, but products that actually say “made in America” on the product or the packaging.  I understand that it’s increasingly difficult to find American-made products, and that they sometimes cost more than those made elsewhere, but there is no better way to create or ensure American jobs.  For example, a Chevrolet or Ford is not only assembled in the U.S. by American workers, many of the parts are made in the U.S. and the profits go to American-based companies that pay taxes in the U.S.   This isn’t protectionism.  It’s simply common sense.

Finally, we can individually and collectively boycott corporations that don’t operate in our best interests.  Given their recent behavior, why would anyone continue to patronize the too-big-to-fail banks when there are so many other alternatives?  So even if you feel that voting for political candidates doesn’t change anything.  Voting with your purchases most definitely can.

Corporate loan sharking.

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Having read that credit card companies are increasing interest rates, I began to wonder: What separates our financial institutions from the Sicilian Mafia, the Chinese Tongs or anyone else imprisoned for loan-sharking? They all charge outrageous interest rates on loans. They all have aggressive collection tactics. And many of them have politicians in their pockets.

The main difference, of course, is that the banks have incorporated as financial institutions. This allows the banks and credit card companies to borrow money from the Federal Reserve at a discount rate that’s currently .05 percent. Then they lend it at interest rates ranging from 20 to more than 45 percent! Not even casinos enjoy that kind of return. But, then, casinos are regulated.

For those of you under age of 50, you might be interested to learn that all financial institutions used to be governed by usury laws designed to prevent the lending of money at unreasonably high interest rates. State banks still are. Unfortunately, usury laws no longer apply to banks that label themselves “national”. The result is that large banks such as Bank of America, Wells Fargo and Chase can charge pretty much any interest rate they want.

And they want a lot.

Of course, they justify their rates by claiming that consumer default is on the rise.

There are several problems with that claim. One, the managers of these companies pay themselves 6- or 7-figure bonuses. Two, it was their greed that led to an economy that has forced consumer defaults. And three, it was the government, financed by you and I, that kept these companies from going bankrupt.

If our Congress ever decides to put the interests of taxpayers above corporations, the corporate officers that run national banks might have even more in common with the Mafia and the Tongs – a prison cell.

How tea-baggers can eliminate the national debt.

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Since President Obama’s inauguration, the so-called tea-baggers have demonstrated, yelled at and threatened the administration. They claim the President is not a citizen. They believe he is trying to implement a socialist, or even communist, agenda. And they seem most angry over increases in the national debt. Never mind that the increases are the result of the previous administration’s policies. Never mind that much of the money allocated through TARP funds has been repaid. Never mind that GM seems on the road to recovery. And ignore the fact that, according to the CBO, the stimulus has saved or created 1.6 million jobs.

However, I think we can channel all that anger and energy to help pay off the national debt. Since the tea-baggers have driven up sales of guns and ammo following Obama’s election, they’re certainly well-enough armed to defend our shores. That would permit us to eliminate most of our national defense budget.

Just think, without a large military force, the tea-baggers would no longer have to fear that our government will take away their freedoms. Of course, we could keep a small professional military to operate, maintain and defend our enormous arsenal of nuclear tipped missiles. That would ensure that no foreign government would attack us. We’d bring home our troops from Afghanistan, Iraq, Germany, Japan and South Korea. Without an enormous military and all of its ships, planes, tanks and troop carriers, we would have less need for oil, so we would no longer need to project American power around the globe. And since most of our large, multi-national corporations have already exported most of our jobs, we should feel no obligation to protect corporate interests on foreign soil. Besides, those companies can afford to hire their own protection such as the likes of Blackwater, aka Xe.

What’s not to like? No more war. No more nation-building (other than on our own soil). No more national debt. All made possible by putting the tea-baggers’ guns and anger to better use.

The no-it-all party.

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As Republicans continue to attack President Obama over the lousy economy they, themselves, created, it becomes painfully obvious that they have no compassion, no ideas, no shame and no clue.  They keep serving up the same failed theories and rhetoric that got us into this mess. 

In their minds, the economy would recover if only the Democrats would provide more tax cuts for the wealthy.  At the same time, Republicans are attempting to stonewall any attempts at regulating Wall Street or reforming the runaway health insurance industry.  In their view, the “free” market and deregulation are cure-alls for anything that ails our economy.

But before anyone wants to sign onto their Reagan-inspired trickle-down economic theories, let’s look at what this kind of thinking has brought us over the last 30 years of Republican leadership:

1 – More than 14 million Americans are currently unemployed, and Federal Reserve Chairmen Ben Bernanke blames the continuing high level of unemployment on the too-big-to-fail banks for failing to make loans to small businesses, the engine that drives our economy. 

2 – 49 million Americans, including 17 million children, currently lack adequate, consistent access to food. 

3 – The VA estimates that 131,000 veterans are homeless on any given night and 18 veterans commit suicide every single day. 

4 – Nearly 47 million Americans lack health insurance.  Of those, nearly 45,000, including 2,266 veterans, die each year for lack of access to health care. 

5 – In what used to be a sight seen only in third world nations, thousands of American citizens have stood in line for free health care because they lack insurance.  More than 8,000 stood in line to receive health care in Los Angeles alone.  Many were turned away.  1,000 recently stood in line for free health care in New Orleans and there are similar free clinics scheduled in Little Rock, Kansas City and other U.S. cities.

These are not the kind of problems that will be solved by more tax cuts for the wealthy or further deregulation of our greedy, ship-the-jobs-off-shore industries.  They require substantial commitments of tax dollars, along with fresh ideas and political will, neither of which are currently available from the Republican Party.

Who’s really at fault for our nation’s predicament?

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Who is more at fault for the problems that face our nation?  Republican candidates?  Or the voters who are deceived into voting for them?  During campaigns, Republican candidates take a populist tone.  They talk about the issues that are important to ordinary Americans such as opportunity and personal freedom.  But when they are elected, they tend to focus almost exclusively on issues designed to benefit the elite. 

Despite promises of fiscal responsibility, Reagan and George W. Bush dramatically increase the deficit and national debt.  Despite promises of small government, Bush created the huge bureaucracy that is Homeland Defense.  And the Republican mantra of lower taxes has really proven to be nonsense.  They may occasionally offer a token tax cut for the middle and lower class, but the real cuts are reserved for the wealthy.   Republicans talk about creating jobs then make it easier for corporations to eliminate collective bargaining and ship jobs oversees.  They talk about getting government regulations out of the way then watch corporations create new scams to abscond with more of their consumers’ money. 

Why, then, do voters fall for these false promises over and over?  Often it’s because they aren’t curious enough to really examine the party’s platform and hold the candidates accountable.  And all too often it’s because they focus on a variety of wedge issues such as abortion, terrorism and same-sex marriage.  They fall victim to a sort of 3 card monte.  They’re mesmorized by the Republican distractions of fear, anger and religion.

How many lower and middle class voters actually benefited from Reaganomics?  How many benefited from George W. Bush’s “compassionate conservatism?”  I submit that instead of jobs, increased salaries and tax cuts, they were rewarded for their votes with war, massive deficits and decreased prosperity.  But the real Republican constituency consisting of CEOs, bankers, investors, oil executives and defense contractors is doing just fine, thank you.