Category Archives: Government

A simple plan for taking back our economy.

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It has been more than a year since Wall Street’s risky investments collapsed our economy.  Unfortunately, Congress still has not passed legislation to prevent such calamities in the future.  Instead of trying to craft new legislation, I suggest that Congress look to the past.  To wit:

1 – Reinstate, in its entirety, the Glass-Steagall Act.  The act created firewalls between commercial banks, investment banks and insurance companies following the Great Depression.  It was the unraveling of this act in 1994 that undoubtedly led to our current recession.

2 – Re-regulate derivatives to prevent highly risky investments resulting from the so-called “Enron exception.”  The “Enron exception” protected the company’s on-line commodity trading from federal regulation ultimately leading to Enron’s failure.  So, of course, Republicans couldn’t wait to expand the legislation which resulted in runaway crude oil prices and the housing-fueled financial collapse of 2008.

3 – Re-regulate banks by instituting a national usury law that would cap interest rates at 12 percent.   Prior to the Reagan-era deregulation, today’s interest rates would have resulted in prison sentences for loan sharking. 

4 – Restore the maximum income tax rates to pre-Bush levels.  Better yet, restore the maximum rates to pre-Reagan levels.  This could provide additional income to rebuild our infrastructure and/or reduce the national debt.

5 – Close tax code loopholes which encourage U.S. corporations to establish off-shore “headquarters” in order to avoid taxes.  At the very least, prevent such corporations from receiving government contracts.

6 – Use our anti-trust laws to break up any corporations deemed “too large to fail.”  If a company is so large that its failure would damage the nation’s economy, it automatically qualifies as a monopoly.

There is nothing new or Earth-shattering about any of these measures.  And that’s the point.  They have all been proven.  In fact, they kept our government and our businesses operating effectively for decades until Republicans undermined our nation’s economic security in order to deliver greater profits to their greedy corporate masters.

The Bill of Rights that was never enacted.

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Michael Moore’s latest movie Capitalism, A Love Story includes film from President Franklin Roosevelt’s 1944 State of the Union address.   As part of his address, FDR stated, “It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known.  We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.”  He continued, “We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence.  ‘Necessitous men are not free men.’  People who are hungry and out of a job are the stuff of which dictatorships are made.”  

President Roosevelt proposed what he called a second Bill of Rights “under which a new basis of security and prosperity can be established for all—regardless of station, race, or creed.”  This 2nd Bill of Rights included:  The right to a useful and remunerative job in the industries or shops or farms or mines of the nation; The right to earn enough to provide adequate food and clothing and recreation; The right of every farmer to raise and sell his products at a return which will give him and his family a decent living; The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad; The right of every family to a decent home; The right to adequate medical care and the opportunity to achieve and enjoy good health; The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment; The right to a good education. 

Roosevelt concluded that “America’s own rightful place in the world depends in large part upon how fully these and similar rights have been carried into practice for our citizens.”  Unfortunately, FDR did not live long enough to see his 2nd Bill of Rights enacted.  The question now becomes, will we? 

Let the investigations begin.

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It was recently announced that a former member of the Bush cabinet, Gail Norton, is the subject of a corruption probe. As Secretary of State, Ms. Norton awarded some lucrative oil shale leases to a subsidiary of Royal Dutch Shell PLC, the company that hired her a few months later.

The focus of the investigation is whether Norton violated a law that prohibits federal employees from discussing employment with a company if they are involved in dealings that could benefit the firm. It’s also possible that she broke the federal “denial of honest services” law, which permits a government official to be prosecuted for violating the public trust.

I have no idea if Ms. Norton is guilty. Her actions certainly give the appearance of guilt. But she’s certainly not the only former member of the Bush administration who appeared guilty of some impropriety. 

How about former EPA chief Stephen Johnson who found ways to avoid regulating greenhouse gases? How about former Secretary of Treasury Henry Paulson who authorized billions to former colleagues in financial institutions without restrictions? How about former Attorney General Alberto Gonzales who fired US attorneys for what appeared to be political purposes? Or how about John Yoo who found questionable justification to approve torture? Scooter Libby was convicted of outing a covert CIA operative, but what about those above him who likely encouraged him to release the information?

How about Don Rumsfeld who was responsible for awarding “no bid” military contracts to the corporation that was previously headed by former Vice-President Cheney? Finally, how about the former president who usurped power from Congress and seemingly ginned up information to justify an unwarranted invasion of Iraq?

As long as there are reasonable suspicions that these people committed illegal or unethical actions, there is a great likelihood that this kind of unethical behavior will continue.

And why limit the investigations to former government officials? The Bush administration was especially egregious. But the problems with our government go much deeper.

While we’re at it, let’s investigate the links between all elected officials and lobbyists. After all, when a political candidate receives tens of thousands of dollars from an industry, corporation, lobbyist or individual expecting special access or treatment, is that not as unethical as what Gail Norton is accused of?

Maybe we should reconsider all of our troop deployments.

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The current discussion regarding the appropriate level of US troops for Afghanistan got me wondering about the total size of our military.  How many more troops do we have to send?

The most recent information I found shows that we have nearly 1.4 million active duty troops worldwide and another 1.4 million in active reserve.  Those totals include 130 thousand in Iraq and 62 thousand in Afghanistan with at least 68 thousand by year end.

In addition, we have 40 thousand in South Korea, 45 thousand in Japan, plus 5-30 thousand each in Italy, Spain and Turkey and 250 thousand in Germany!  The question is “Why?” 

I understand why we have troops in Iraq and Afghanistan.  But why do we still have troops in Japan?  The war has been over for more than 60 years and, although Japan is a threat to us economically, it certainly isn’t a military threat.  So what possible reason can there be to maintain such a large force?  If it’s to act as a counter to China, do we really think 45 thousand troops are a serious deterrent to China’s combined forces of more than 6 million?

You also have to wonder about our troop levels in Germany.  After all, Hitler and the Third Reich were defeated in 1945 and the Cold War has been over for more than 20 years.  

South Korea?  Okay, I understand that one.  The Korean War has never been declared over – we simply signed an armistice that paused the fighting.  And even though that was 56 years ago, the country to the north has nuclear weapons, missiles and a huge standing army. 

Perhaps the most puzzling deployments are the thousands of troops in Italy and Spain.  For what purpose?  Shopping?  Supplying wine to the rest of our troops?  Working on their tans?  Because Don Rumsfeld favored Tuscan cooking? 

The real question is this:  If we have 1.4 million troops, why are so few bearing the brunt of combat in Iraq and Afghanistan?  If my figures are correct, fewer than 15 percent are deployed in those countries.  Yet many of our soldiers are already on their 4th and 5th tours of duty in combat. 

As long as President Obama and the Department of Defense are considering troop levels in Afghanistan, why not look troop levels everywhere?  They could begin by declaring victory in Germany, Italy and Japan, and finally bring those troops home.

Why different standards for ACORN and Halliburton?

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Recently, Congress voted overwhelmingly to suspend funds for ACORN.  Never mind that the bill violates the Constitution’s prohibition on Bills of Attainder (singling out a single group or individual for punishment).  According to Republicans, ACORN must be punished for the actions of a few of its staffers.

Why suspend funds from an organization that has a long history of helping the poor?  The short answer is that ACORN has made it more difficult for Republicans to be elected, and Democrats are simply afraid to be painted as too partisan. 

During last year’s presidential election, ACORN invoked the fury of conservative talk radio and Fox News by registering voters.  Since most of these newly registered voters were minorities and/or poor it is assumed that they voted for President Obama.  Of course, the conservatives cried foul.  They accused ACORN of helping to steal the election.  They claimed that ACORN had registered tens of thousands of illegal votes.  There were widely publicized registration forms for Mickey Mouse, Minnie Mouse, Donald Duck, etc., which seemed to point to widespread voter fraud. 

The problem with that argument is that ACORN pays members to register voters.  Since the members are paid by the number of registration forms filled out, some of these people inevitably try to scam the system.  ACORN recognizes that possibility, and since it has to account for every single voter registration form, the organization sorts the forms into three categories before submitting them to the local voter registration office:  Those that can be confirmed, those that cannot be confirmed, and those that are obviously fraudulent.  Therefore, if there is fraud, it occurs at the voter registration office.  ACORN should not be held accountable.

Nevertheless, Republicans felt they must do something to rid the country of ACORN, so a few enterprising conservatives went looking for evidence that ACORN is a renegade organization defrauding the American public.  Two young people posed as a pimp and a prostitute and visited ACORN offices looking for advice on how to run a brothel and funnel the money into a Congressional campaign.  In three offices, ACORN volunteers provided advice.  In another, the ACORN volunteers recognized the scam and “punked” the actors. 

There is no question that those who provided the advice should be fired.  And they were.  But attacking an organization of more than 500,000 members for the bad behavior of a few is ridiculous.  If we’re going to use that standard for all organizations receiving money from the federal government, then why not suspend all further contracts with Halliburton?  After all, the sloppiness of a few employees in its KBR subsidiary caused numerous soldiers to be electrocuted in Iraq.  There are also accusations that several Halliburton employees gang-raped a woman in Iraq.  When the woman tried to sue Halliburton for her treatment, she was told that the fine print in her contract prevents lawsuits.  Finally, there is alleged evidence that Halliburton has defrauded the government out of millions of dollars.  Yet there is no parallel outcry against Halliburton such as that against ACORN.  No legislation to withhold funds.

Or how about Blackwater, aka XE?  Blackwater mercenaries have been accused of murdering Iraqi civilians and raping Iraqi women.  Yet XE still receives lucrative contracts with the Defense Department.

There can be only two explanations:  Money and influence.  Halliburton and XE have them.  ACORN does not.

For our economy, let’s give credit where credit is due.

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The so-called teabaggers and wing nuts claim their attacks on President Obama aren’t the result of racism or ideology.  They say their demonstrations are about the national debt which they believe has increased to staggering new levels under the Obama administration. 

There are three flaws with their argument.  One is that the debt only really matters if we plan on selling our nation sometime soon.  Otherwise, it’s merely a number.  Second, while it’s true that the debt has reached an all time high in actual dollar amount, as a percent of GDP (gross domestic product) it has been higher before.  And third, very little of the current debt can be attributed to actions by President Obama.

Following the Great Depression and WWII, the national debt as a percent of GDP stood at 120 percent.  It steadily decreased each year until the election of Ronald Reagan in 1980.  Under Reagan the administration so overspent on military weapons that the national debt nearly tripled.  The debt continued to increase during the George H.W. Bush administration.  When Bill Clinton was elected President in 1992, he prioritized the economy and succeeded in significantly reducing the debt.  Then, under George W. Bush, the debt nearly doubled again until, by the time he left office, it had risen back to 80 percent of GDP.  (One has to wonder where the tea parties and town halls were then.)

In reality, the recent increase in our national debt is the result of two wars begun by the Bush administration (one based on false information) that have cost more than $2 trillion – a figure that doesn’t even include the cost of health care, disability compensation and death benefits for those who have served in these wars.  Contributing to the increase was the creation of the massive Homeland Security department by the Bush administration.   And, of course, the primary cause was Republican-led deregulation of banks and commodities resulting in runaway greed and wild speculation.  When the banks’ risky investments failed, the Federal Government was faced with a decision of bailing out those responsible for this mess.  Or letting the nation slide into a 2nd Great Depression. 

By the time of his inauguration, President Obama was facing the worst economy since Herbert Hoover.  And, like FDR, he has little choice but to try to create jobs through stimulus funds and loans.  Yet, despite having created this mess, Republicans have fought Obama at every opportunity.  Not a single Republican in the House voted for the stimulus package and all but three Republicans in the Senate voted against it. 

It appears they would rather make some sort of political statement than uphold their commitment to serve our nation. 

Republicans have also tried to block health care reform and the proposed cap on carbon dioxide emissions intended to head off more severe climate change.  (They wouldn’t want to interfere with the profits of our large corporations, would they?)

Perhaps the most absurd attack on President Obama is his trip to promote Chicago as host of the Olympics.  They claim that he should be spending more time in the Oval Office.  Hmmm, I wonder what they thought of Bush’s vacations while in office.  The final statistics show that “W” spent 977 days (33 percent) of his two terms on vacation, including the days immediately following Hurricane Katrina.

In my opinion, everyone needs to be more patient with this president.  Republican presidents had nearly 30 years to get us into this mess.  Let’s give President Obama more than 9 months to get us out of it.

Show us the money.

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When the housing market crashed bringing down the financial industry along with it (or was it the other way around?), trillions of dollars vanished.   The question is where did the money go?

The Federal Reserve along with the Bush administration started propping up the financial industry and the economy beginning in 2007.  Mostly this was done quietly with little to no media attention.  By the time President Obama was sworn in, taxpayers had already shelled out more than $3.46 trillion and the world economy was on the verge of collapse. 

Since Obama’s inauguration, the federal government has committed another $3.77 trillion in loans, bailout funds and stimulus spending to stave off what most economists concluded would be a 2nd Great Depression.   

And people are outraged!  Not at the ones who created this mess and originally hid it from the public.  But at the administration who inherited it.  That kind of logic could only be demonstrated by the likes of Glenn Beck, Rush Limbaugh and Dick Armey.   Where are their “Teabagger” demonstrations against CitiGroup, Bank of America, and Wells Fargo?  Where’s the right-wing fury for AIG?  Where are the posters calling Bush and Cheney Socialists and Communists for having allowed (or encouraged) this to happen?   

More important, where’s the money?

Of the $7.244 trillion total, $168 billion was mailed to taxpayers in the form of stimulus checks.  $787 billion is dedicated to stimulus spending on infrastructure and new jobs.  $275 billion is targeted at foreclosure relief.  And $15 billion is aimed at supporting small businesses. 

The rest of the money ($6.167 trillion) went to prop up the very institutions that created the mess.  For example, $234 billion went to CitiGroup, $137.5 billion to AIG, $118 billion to Bank of America and $29 billion went to Bear Stearns.   Another $700 billion was dedicated to the Troubled Asset Relief Program.  $1 trillion was set aside for the Term-Asset-Backed Securities Loan Facility to make it less risky for banks to lend money to businesses and consumers.  $720 billion was set aside to help banks remove toxic assets from their balance sheets.   Indeed, almost all the rest of the money has been allocated to help our banks recover from their own risky behavior.

And it has worked really well…for the banks.  Thanks to government aid, the CEOs, fund managers, and other financial executives are still able to afford new vacation homes, yachts and other “necessities” with their bonuses.  They’ve been able to raise fees on checking accounts and interest rates on credit cards.  And they’ve been able to return to the risky behavior that led to this mess in the first place.

Best of all, thanks to their lobbying efforts, paid for in large part by taxpayers’ money, they’ve so far been able to fend off serious regulation.   

A Christian Nation?

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There’s an element of this country that is fond of dismissing anyone who fails to tout his or her “Christianity.” They talk about returning this country to its Christian roots, the way the Founding Fathers intended.

To bolster their argument, they point to the words “under God” in the Pledge of Allegiance, and to the slogan “In God We Trust” that is displayed on our nation’s currency. Never mind that these are not references to Christ, but to God. And never mind that these words weren’t authored by our Founding Fathers. They were added at the urging of fundamentalist members of The Fellowship, aka The Family, in 1954. And when you think about it, it’s beyond ironic that the words “under God” which replaced “indivisible” in our Pledge of Allegiance should now be used as a wedge to separate us.

Truth is, very few of our Founding Fathers were Christian. It’s well known that Thomas Jefferson was a Deist (someone who believes in a higher being, but not in a “revealed doctrine”) having rejected Christianity. James Madison and John Adams were also known Deists, and it is believed that many more shared their beliefs, including George Washington and Benjamin Franklin.

The very notion that our Founding Fathers would have dictated or supported a particular religious belief is simply ludicrous. Many of the Europeans who invaded and settled this land were driven from their native lands as the result of religious persecution. (As Huguenots, my own ancestors were faced with the dilemma of leaving Europe or being slaughtered in the “cleansing” of France, Germany and Switzerland by the royals and the Catholic Church.)

Most of these people had no intention of imposing their own religious beliefs on others. Indeed, that’s why our Declaration of Independence and the Constitution provide for separation of Church and State.

Another popular myth used to support fundamentalist politics is the notion that our Founding Fathers placed tablets of the Ten Commandments in public places, most notably courthouses. However, most of these tablets were actually distributed around the nation by Cecil B. DeMille as a promotion for the opening of his epic film “The Ten Commandments” in 1956. Moreover, if Christian fundamentalists actually followed the teachings of Christ they could never be comfortably allied with the present-day Republican Party which panders to the rich and the powerful.

These people should take their own advice and ask themselves “What Would Jesus Do?” The Jesus described in the Bible who embraced and cared for the poor, who turned the other cheek, and who threw the money-changers out of the Temple.

I believe that no one group should feel superior or feel as though they have a corner on patriotism in the United States. There’s room for people of all faiths as well as those who have no faith. Since its founding, this nation has welcomed Atheists, Buddhists, Christians, Deists, Hindus, Jews, Muslims, Shamans, and more. The sooner we’re all willing to accept that, the sooner we can end the senseless bickering and address the real problems we’re facing.

The revealing nature of Republican attacks.

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Following Representative Wilson’s outburst during the President’s address before a joint session of Congress, I believe we have to ask ourselves some questions:  Is it a coincidence that the first such outburst was aimed at our first African-American President?  Is it a coincidence that the outburst came from a Congressman from South Carolina?  Is it coincidence that this is the first President accused of being born in another country despite indisputable evidence to the contrary?  Is it coincidence that this President is accused of creating death panels for senior citizens despite the facts?  Is it coincidence that this President is accused of trying to “indoctrinate our children” by merely encouraging them to work hard?  And is it coincidence that the number of death threats against our President has increased dramatically?

The conclusion is inescapable.  The attacks against President Obama represent more than a mere difference of opinion or ideology. 

From the moment he was sworn in, President Obama has been faced with an unprecedented combination of crises – a floundering economy, a failed financial system, a collapsed auto industry, millions of foreclosed homes, out of control health care costs, skyrocketing deficits and two wars.  These weren’t crises of his own making.  These were crises created under the previous administration.  Yet rather than rallying behind the President in the face of these crises as Democrats rallied behind Bush after 9/11, the Republicans have done everything possible to undermine Obama’s attempts to right our ship of state.   

Granted the attacks against President Obama are coming from a small, angry minority in Southern states.  (Okay, okay, I know I just described the Republican Party.)  But, in my lifetime, no President has faced such venomous and personal attacks.  Not Richard Nixon following the cover-up of the Watergate burglary.  Not Ronald Reagan following the cover-up of the sale of weapons to Iran.  Not George W. Bush following the lies that led to the unnecessary invasion of Iraq. 

Perhaps the real lesson of a Republican shouting “You lie!” at President Obama in the House chamber is this:  Pathological liars often assume everyone else is like them. 

The other side of Reaganomics:

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In a previous post, I stated my belief that Reaganomics was an utter failure.  That’s not entirely true.  It was a huge success for the wealthy.  It also successfully eroded the power of organized labor. 

When Reagan fired the striking air traffic controllers who were members of PATCO, I believe he inspired his followers to launch an attack on all labor unions.  Since that time, there has been a steady outsourcing of American manufacturing jobs to places like China, India, Indonesia and Mexico.   This has forced unions to make concessions with regard to wages and benefits.  The recent troubles of GM and Chrysler are good cases in point. 

During the debate over auto industry bail-outs, the discussion seemed to revolve around the wages and benefits of United Auto Workers.  Never mind the decades of questionable decisions by the company executives, along with their inflated salaries.  In the minds of many, the real problem is that UAW workers were paid more than their counterparts at Honda, Toyota, Nissan and other import brands.  The claims were that while the workers for foreign brands were paid approximately $45/hr, UAW workers were paid $70/hr or more.  Outrageous!  Right? 

Well, hold on a moment.  My UAW friends tell me that the figure of $70/hr not only included wages and benefits such as health care.  It also included the cost of benefits for recent retirees, plus all costs associated with workers – overtime costs, Social Security, Medicare, etc.  It even includes the cost of tools used by the workers!  Take away all of those costs and the actual average hourly wage was $29.78. 

But it’s not just lower wages the Reaganites are after.   What they really want to do is to rid corporations of the obligation for health and retirement benefits.  And what better way to accomplish than to crush organized labor? 

It took a couple of wars, the Great Depression and many bloody management/labor clashes for conditions to improve for American workers.  I fear that Reaganomics combined with globalization and the greed of CEOs may be leading us back to labor conditions similar to those under the robber Barons of the early 1900s when work was more like servitude.