Category Archives: Government

The False Promise Of Privatization.

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Since Ronald Reagan, Republicans have promoted the privatization of government services as the solution to all economic problems. They have long wanted to privatize Social Security and Medicare as a method of killing these so-called entitlements. They would like to privatize the postal service. Under Republican administrations, they have already privatized prisons, much of the military, even intelligence-gathering operations. And, at the state level, they propose to privatize highway rest stops and state parks.

The belief is that corporations are always able to do things better, and for less cost, than the government.

Well, let’s examine the concept. Had Social Security been privatized in 2008, most people would have lost large portions of their investments with the crash of the stock markets. Private contractors for the military have bilked taxpayers out of hundreds of billions of dollars in Afghanistan and Iraq. And the recent escape by three murderers in Arizona occurred due to negligence at a for-profit prison.

Want more?

Then how would you feel about the sale of naming rights for the Grand Canyon or Yosemite? The sponsoring corporation could place its logo at the base of the canyon or the base of the falls. And why stop there? All park attendants could wear logos on their backs. There could be billboards for the corporate sponsors everywhere within the park borders. All highways and roads could become toll roads with a series of corporate logos replacing the white dotted center lines. Interstate rest stops could be turned over to fast food corporations and gas stations with pay toilets. All police squad cars could have corporate logos replacing the shields on the doors. And all 911 calls could be routed to call centers in India or the Philippines where the caller is put on hold for 20 minutes.

And once the corporations realize they have control of the business, prices will go up to pay six-or-seven-figure bonuses to the executives and dividends to shareholders.

The point is, corporations are in business to make money and they’re only responsible to their shareholders while government entities are non-profit and report to you. And, as for the claim that corporations are less bureaucratic than government, anyone who has ever worked for a large corporation or tried to get a claim paid by a large insurance company can tell you that’s simply not true.

Tax Cuts As An Economic Stimulus.

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It’s one of the most important issues that will be debated in the coming months. Democrats, including President Obama, want to let the Bush tax cuts for the wealthiest two percent of our population expire. They claim that we can no longer afford these tax cuts and letting them expire would reduce the deficit and create more fairness for the middle class.

Republicans, on the other hand, claim that the majority of those making $250,000 or more per year are small business owners and that raising their taxes would cost us thousands of jobs. Indeed, they would not only make the Bush tax cuts permanent. They would cut taxes even further as a stimulus for creating jobs.

There are a couple of things I find troubling with the Republican logic. Most small business owners make far less than $250,000 per year. And those who make more than $250,000 likely won’t spend the extra money on their businesses. As a small business owner, I know that’s just not how things work. While some will put the extra money back into their business, most will invest the money in securities, save it or spend it on themselves.

But don’t just take my word for it. Let’s look at how most economists view tax cuts as a form of stimulus: They estimate that tax cuts have a return of 32 cents of economic growth for every dollar spent. On the other hand, programs like food stamps (which many Republicans oppose) have much higher rates of return. It’s estimated that such programs generate $1.71 of economic growth for every dollar spent. And, according to Mark Zandi, John McCain’s economic adviser during the 2008 presidential campaign, those unemployment benefits that Republican teabaggers so oppose are estimated to generate $1.61 in economic growth for each dollar spent.

As the nonpartisan Tax Policy Center put it: ” The tax cuts of 2001 and 2003 provided much less stimulus to the economy than other policies of equal cost would have. The underlying reason is that although the tax cuts were well-timed to provide a short-run economic stimulus, they were poorly designed for this task.”

They did, however, provide a nice windfall for the wealthiest Americans while adding billions to our deficit.

If Democrats Renew Bush Tax Cuts, They Deserve To Lose Congress!

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Yesterday, on the McClatchy website, there was a story that many Democrats are leaning against repealing the Bush tax cuts for the wealthiest Americans. The reason? Despite the fact that renewing the tax cuts will add billions to the deficit, some Democrats are worried that it will make their re-election more difficult.

So they’d rather cause long-term damage to our nation than risk losing their seats in Congress? Really?

If that’s how they feel, it’s time for them to go! Their attitude only proves what many progressives have thought for some time. A large number of Democrats are gutless wimps who cower at the first challenge from a Republican. Yet these same Democrats speak in general terms about the damage conservative Republicans are doing to this nation.

Personally, I’m sick of it! I’m sick and tired of the Grand Old Party of Liars who represent big business. I’m sick of the Fox Noise machine. I’m sick of the “I’ve got mine, you can’t have yours” whiners otherwise known as the tea party movement. I’m tired of the greed and influence of large corporations. I’m tired of obscenely wealthy conservative puppet masters like the Koch brothers who attempt to control our elections through donations to “think” tanks like the American Enterprise Institute, Americans for Prsoperity, the Cato Institute, FreedomWorks, etc.

But most of all, I’m sick of the cowards who give the Democratic Party a bad name.

The Growing Underclass In America.

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There are currently 14.6 million Americans who are out of work, and that number likely doesn’t include millions more, such as the self-employed, who have seen their businesses diminish to virtually nothing. But before you blame the current Administration, take a look at the monthly unemployment claims beginning in January 2008. By the time President Obama was inaugurated, the new claims had grown to more than 750,000/month. Yet despite having to fight Republicans every step of the way, President Obama and Congress began to turn things around. In fact, in May of this year, we added 433,000 jobs.

The real question is, without enormous structural changes to our nation, what kind of jobs will be available?

Even before the Great Recession, most of our jobs were in the so-called service sector. And most of these jobs pay less than $25,000/year. The list includes fast food workers, restaurant workers, hosts and hostesses, dishwashers, cashiers, amusement park attendants, movie theater ushers and ticket-takers, farm workers, gaming dealers, bartenders, personal and home care aides, parking lot attendants, lifeguards, ski patrol, garment pressers, laundry & dry-cleaning workers, child care workers, maids, and elderly caregivers, receptionists, secretaries and maintenance “engineers”.

The result is that approximately 35 percent of the U.S. workers make $25,000/year or less! (The national poverty level is $21,756 for a family of four.) And many careers that were once considered good jobs, such as construction, don’t pay much better. Construction workers make only $11/hour to $15/hour.

Our nation has been bleeding relatively high-paying manufacturing jobs since the 1980s (7.7 million between 1986 and 2001). However, under the Obama Administration, the U.S. economy has actually begun to reverse that trend. New data shows that we have added more than 180,000 manufacturing jobs in 2010. Still, the majority of good jobs are in medicine, law and government. Indeed, of the top 15 highest paying jobs in America, 14 are in medicine.

Lowering taxes for corporations and the wealthy as Republicans demand won’t help create new higher-paying jobs. That will only ensure that the wealthy will make even more money and pay fewer taxes. It will also relegate even more of our citizens to the growing underclass.

A better option is to follow the path of FDR, Truman and Eisenhower – raise taxes on the wealthy and the “too big to fail” by allowing the Bush tax cuts to expire then use the additional revenue to rebuild our infrastructure and to create energy alternatives to foreign oil. That would create opportunities for construction companies, manufacturers and suppliers of materials. It would also incentify our corporations to invest their hoards of cash, and it would encourage our banks to open their vaults and make loans to small businesses. More important, it would put people back to work.

Shirley Sherrod Story Reveals Much About Both Republicans And Democrats.

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When a right wing blogger edited a speech by a USDA worker describing an event that took place more than 20 years ago, he made it appear that she had committed a racist act against a troubled white farm family.

Of course, Fox Noise Channel and other right wing media megaphones jumped on the opportunity to make yet another charge that the Obama Administration favors blacks over the long-oppressed white majority (sarcasm intended).

When confronted with the Fox Noise story, Secretary Vilsack immediately asked for her resignation. Even the NAACP censured her. However, one day later, the unedited video was released showing that Ms. Sherrod had simply (and graciously) been using the story of her long ago, racist reaction to make an object lesson that racism against any group has no place in our society.

So why not use Ms. Sherrod’s story as an object lesson for 21st century politics?
It is, after all, very revealing about our weaknesses. It reveals the mean-spirited and deceptive practices of the right wing. It reveals the lack of journalistic standards being practiced by Fox (and the much higher standards of CNN and MSNBC). It reveals the weak knees of Democrats whenever they are confronted by right wing charges. And it reveals the human tendency to believe the worst about someone even before we know the facts.

We should all vow to do better in the future.

AZ now stands for Assinine Zealots.

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For the past 15 years, Arizona Republicans have cut taxes for corporations and the wealthy in an attempt to intentionally bankrupt the state. At the same time, they’ve transferred funds through tax credits to private and parochial schools while hacking away at public school funding. And as the state’s population blossomed, they did little to expand the economy, choosing to rely instead on home building and tourism.

So what are they doing now that both industries have collapsed? In addition to raising sales taxes (in my locale, the current rate is 10.5 percent on all purchases) and further slashing funding for public schools (funding that already ranked 51 out of 50 states), they’re blaming our problems on illegal immigrants.

For centuries, oppressive regimes around the globe have deflected criticism by blaming minorities. Of course, illegals are in no position to defend themselves. They have no ability to vote. By necessity, they don’t even want to admit their status.

So instead of trying to create new jobs in Arizona or even eliminate government waste, the Republican–dominated Legislature and Governor Jan Brewer deflect attention from their abysmal performance by villainizing illegals. Even the wannabe teabaggers, John McCain and Jon Kyl have gotten into the act. They falsely claim that Phoenix ranks 2nd in the world for kidnappings. They falsely claim that most of the undocumented workers are drug dealers or mules. They falsely claim that the Obama administration refuses to take action to seal the border. And they falsely claim that undocumented workers contribute nothing to the state’s economy while flooding social services.

The truth is that undocumented workers contribute a great deal to the state’s economy through hard work, purchases and taxes. Many pay income taxes, Social Security taxes and Medicare taxes despite the fact that they will never benefit from them. All rent or purchase homes. They also pay sales taxes on purchases of cars, appliances, furniture, clothing and food. And now that SB1070 has been passed into state law, those contributions are fleeing the state putting even more stress on the state’s economy. Home values continue to drop. Owners of apartment buildings report record vacancies. Employers in numerous industries report that they are having difficulty filling jobs. On top of that, thanks to SB1070, cities and groups around the country have cancelled meetings and conventions in our state. Even if they aren’t directly boycotting Arizona, many don’t want to become embroiled in the controversy.

Of course, there are angry, old white people from other states who have organized a few “buycotts” in Arizona. Indeed, a group from Texass recently sent a busload of rednecks to Phoenix in support of SB1070. They spent a day touring the city admiring the soutwestern architecture and culture ending with a rally in, of all places … a Mexican restaurant.

America, Right or Wrong?

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When I was in college at the height of the Vietnam “War”, I was considered an unpatriotic “Commie” for simply questioning U.S. military involvement in a land on the other side of the globe that had not attacked or threatened our nation. I was told, even by my parents, that it shouldn’t matter to me; that I should be proud to fight for our flag no matter how I personally felt about our nation’s actions. Ironically, the only family members who seemed to understand my point of view were those who had served heroically in WWII.

Remembering that ugly period in our nation’s history (and in my life) recently caused me to look at today’s political debate in a new way. I realized that there are many issues that separate liberals from conservatives – education, taxes, greed, religion and the circumstances of our childhoods, to name a few. But the notion of so-called American “Exceptionalism” may be the most divisive of all of the issues that separate us.

Most often, those on the political right believe that patriotism can only be demonstrated by supporting our nation’s every action (of course, the exception is whenever a Democratic President is in office). They could care less about how our nation is viewed globally. They despise the United Nations. They take offense at criticism from other nations. And they’re even more angered by criticism from within. They believe America’s Founding Fathers were Christian saints, and that the Constitution was obviously created through divine providence.

On the other hand, those on the political left are more likely to think globally. We find it difficult to accept bullying, dishonesty and greed – from our nation or any other. We despise poverty. We cherish education. We care about human rights. We’re willing to admit when our nation and its corporations are wrong. Instead of being angered by criticism, we try to understand the opposing viewpoint and change our own if necessary. We believe that it’s the duty of a patriot to call attention to our nation’s errors; to speak truth to power. We understand that the Constitution is a living, breathing document that was flawed (given its denial of voting rights to women and African-Americans) and can be improved. And we believe the Founding Fathers were generous, caring, insightful and prophetic men. But we accept the fact that they were mortals nonetheless.

These contradictions, I believe, are at the very heart of most of our political disagreements. Unfortunately, these beliefs are so firmly entrenched, there’s little we can do to change them. All we can do is to try to understand them and, as progressives, try to frame our arguments keeping these differences in mind.

© LaMaster Propaganda – All rights reserved.

Why Do We Allow Republicans To Ignore Election Results?

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In 2008, voters repudiated conservative politics by electing Barack Obama as President and voting for overwhelming Democratic majorities in both the House and Senate. But, based on the actions of Republicans, it would appear that they have simply chosen to ignore the results. The House has passed bill after bill in order to live up to the campaign promises. The President has repeatedly reached out to Republicans. Yet the Senate Republicans have stonewalled virtually every initiative with parliamentarian tricks. They have placed secret holds on more than 100 Presidential appointees. They have threatened to block many more. And they have used filibusters a record number of times.

This level of obstructionism is unprecedented in U.S. history and voters should make Republican candiates pay for it this November. But according to early polls, it appears that the Republican strategy may work. Voters are angry at incumbents – all incumbents – not just those who have stalled reforms. And voters are angry at President Obama for not doing more about the unrelenting gusher of crude in the Gulf of BP. Never mind that the cozy relationship between Bush/Cheney appointees in the Minerals Management Service allowed BP to apparently cut corners with safety. And never mind that the best minds in science and in the oil industry seem stumped as to how to proceed.

It would seem that many in the public won’t be satisfied until the President dons a diving suit, descends a mile under the surface of the ocean and personally shuts off the wellhead himself.

Seriously, people, there are only four submersibles in the world capable of operating at that depth and none of them are owned by the U.S. Moreover, they are incapable of doing any more than the underwater robots. So the problem has spilled into the ocean and onto Obama’s lap.

Like the financial crisis, the unemployment crisis, the immigration crisis, the national debt and the two on-going wars, the oil gusher is a mess created by the Bush administration. And the Obama administration has been left with the job of cleaning it up. To make matters worse, the Republicans in Congress have done nothing to help.

If there’s any justice in American politics, the Republicans will pay at the polls. But I suspect an uninformed public will reward them for their antics. Republicans will then be able to obstruct even more reforms. And voters will continue to wonder why nothing ever seems to change in Washington.

© LaMaster Propaganda – All rights reserved.

A Crude Awakening!

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Since the days when Jimmy Carter was president, environmentalists were calling for energy conservation and alternative fuels. Unfortunately, the only time these ideas gained any traction was when gasoline and heating oil prices spiked. But once families adjusted to the higher prices, they went right back to their old ways.

Things may be different this time. The only real blessing of the BP oil disaster is that it has focused attention on the consequences of oil. The average American citizen could live with spills in the Arctic or Canada or Kuwait or other faraway places. They could live with climbing gas prices. They could ignore the photos of dying birds, dolphins and fish. And they could live (they think) with climate change.

But now that crude oil and tar balls are washing up on their favorite beaches… Now that’s a real problem!

There may never be a better time to change our energy policy. BP, Halliburton, Exxon and the rest of the oil spillers have less influence on the Democratic-controlled Congress. And they hold no sway with the Obama White House. So it’s time to act! It’s time to end the subsidies for oil exploration. It’s time to subsidize solar, wind and other renewables. And it’s time to redouble our efforts to conserve energy.

Congress should act now to push through a strong energy bill with caps on carbon emissions before the mid-term elections. It should raise the cap on damages to be paid by oil companies. And if Republicans try to block it, Democrats should use every parliamentary tactic at their disposal. What do they have to lose? Republicans have used filibusters and other tricks to stall Democratic initiatives. There is no longer any hope for bipartisanship. Even if it costs Democrats control of the House and Senate in the next election, at least the losing candidates could go home knowing they’ve done one of the best things possible for their constituents and their country. And, along with a new energy policy, that’s something that’s long past due.

The Other Offshore Disaster.

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For more than two months, the nation’s attention has been focused on the gusher in the Gulf. But there’s another offshore disaster that has been going on for at least 50 years. I refer to the large U.S. corporations that have created subsidiaries and “headquarters” off-shore to avoid U.S. taxes.

But I found it difficult to obtain a list of the companies that have taken advantage of the loophole. Now, thanks to Ariana Huffington’s recent article on the Huffington Post, I have a better idea. In her article, she cited a Government Accounting Office (GAO) report from 2008 that showed 83 of the 100 largest publicly–traded companies in the country had operations in tax havens.

The report cited AIG, AT&T, American Express, Boeing, Chevron, and Dow to name a few. Many set up P.O. boxes in the Caymans and Bermuda. And Halliburton chose to move its “headquarters” to Dubai. That’s disturbing enough. Yet, according to the GAO, 74 of those 83 corporations received government contracts. And, of course, taxpayers were asked to rescue two of those companies (AIG and American Express) through billions in government loans.

So these companies are not only avoiding paying their fair share of American taxes. They are filling their coffers with money from taxpayers like you and me!

At a time when our national economy is struggling and when we’re engaged in two protracted wars, closing this gaping loophole would seem one of the top priorities for Congress. But that would mean that our Representatives and Senators would have to vote against some of their largest campaign contributors. Indeed, according to Ariana Huffington’s article, Washington has been trying to address the issue for nearly 50 years. But each time the issue comes before Congress, the corporate lobbyists prevail.

So while Congress debates the impact on the national debt by extending unemployment benefits for working people, they continue to permit corporations to avoid paying billions of dollars in taxes through loopholes. In fact, the latest figures available show that these corporations pay roughly $16 billion in taxes on $700 billion in foreign active earnings – a tax rate of approximately 2.3 percent!

Of course, politicians (especially Republicans) excuse such welfare by saying that corporations create jobs, and that jobs have never been more needed than now. That may be true. But where are those jobs being created? For nearly 40 years, many of these corporations have been creating more jobs offshore than in the U.S.

That being the case, what do we have to lose by forcing them to pay up?