Archive for March 2010
Weekly Pulse: Tanning Tax “Racist” and Other Absurd Objections to Health Care Reform
Filed under: 
By Lindsay Beyerstein, Media Consortium blogger
While President Obama signed the final piece of the health care reform bill into law on Tuesday, o
pponents are not taking the defeat lying down. This week’s prize for the most bizarre objection to health care reform goes to Glenn Beck’s guest host Doc Thompson who alleged that a tax on tanning salons is racist. Andy Kroll of Mother Jones explains:
Filling in for Glenn Beck on his radio show, conservative radio host Doc Thompson recently made the stunningly outrageous claim that a tax on indoor tanning salons, as included in the health care reform bill, is racist. Such a tax, Thompson claimed, discriminates against “all light-skinned Americans” because only white-skinned Americans use tanning salons. Never mind the deadly effect tanning beds and the like have on your skin and health, nor the fact that the tax would generate $2.7 billion over ten years to help pay for health care. No, that couldn’t have anything to do with why the tax was included in the health care bill.
Governors vs. AGs
Christina Bellantoni of TPM Election Central reports that various Republican state attorneys general are clashing with their Democratic governors over plans to challenge health care reform in court. When Michigan Attorney General Mike Cox (R) joined an anti-reform lawsuit, Gov. Jennifer Granholm (D) reminded everyone that “no one in the executive branch has authorized [Cox] to take this position.” The lawsuits are a good way to grab media attention, but Cox and his fellow AGs may end up with egg on their faces if these challenges actually go to court.
Weekly Audit: How Superhero Hilda Solis is Winning the Fight for Workers’ Rights
By Zach Carter, Media Consortium blogger
While the poor judgment of top-level officials at Treasury and the Office of Management and Budget frequently makes the news, there is another, unrecognized economic crew doing terrific work: Officials at the Department of Labor are restoring workers’ rights after nearly a decade of neglect.
To top it all off, President Barack Obama appears ready to make another set of strong, though less high-profile, economic appointments that will help rein in Wall Street excess.
DoL All-Stars
As Esther Kaplan documents in a masterful piece for The Nation, the Department of Labor (DoL) has been transformed from an agency that enabled corporate excess to one that holds companies accountable. In less than a year, Labor Secretary Hilda Solis and her team of deputies significantly leveled the playing field between ordinary workers and high-flying executives.
For decades, when conservatives have attempted to confront social problems, they’ve relied on the mantra of enforcement. If we had more cops, we’d fix everything. But as Kaplan documents, under President George W. Bush and his Labor Secretary Elaine Chao, the DoL simply stopped enforcing worker protection laws. From wage theft to mine safety, the Department essentially allowed corrupt employers to do anything they wanted.
That neglect has already ended. Armed with a budget of just $1.5 billion—that’s roughly 0.2% of the Troubled Asset Relief Program—Solis and company have cultivated a list of economic accomplishments that seemed impossible when they took office. As Kaplan details:
“Facing badly depleted enforcement ranks, Solis hired 710 additional enforcement staff, including 130 at OSHA and 250 for the crucial wage-and-hour division, upping inspectors by more than a third. Another hundred will come on next year to staff a crackdown on the misclassification of millions of employees as “independent contractors”–a dodge to avoid paying taxes and benefits–a move that has set off enormous buzz on business blogs. Her team took a plunger to the stagnant regulatory pipeline, moving forward new rules on coal mine dust, silica, and cranes and derricks. She restored prevailing wages for agricultural guest workers and is poised to restore reporting rules on ergonomic injuries.”
Fixing the Fed
Obama also appears ready to make another slate of strong economic appointments at the Federal Reserve, an agency stuffed with free-marketers who helped engineer both an economic catastrophe and resulting bailouts. Obama’s rumored picks—economists Janet Yellen and Peter Diamond and bank regulator Sarah Bloom Raskin—are aggressive about making the economy work for everyday citizens, as I emphasize for AlterNet.
If Congress passes financial reforms similar to what Senate Banking Committee Chairman Chris Dodd (D-CT) has proposed, the Fed’s regulatory responsibilities will actually expand, despite its failures over the past decade. The Fed has never effectively regulated anything and it’s not very concerned with unemployment as an economic problem.
That makes Obama’s pending slate of officials who prioritize bank regulation and broader employment very important. Raskin, in particular, stands out with her strong record as a state banking regulator. If Obama ultimately nominates her, she’ll be the first pure regulator ever appointed to the Fed. The potential picks don’t make up for Obama’s reappointment of bailouteer Ben Bernanke as Federal Reserve Chairman, but they do show that the President is capable of sound judgment.
Strengthening the Dodd bill
But the strength of Obama’s potential Fed nominees doesn’t justify the weakness of Dodd’s financial regulation bill. As Amy Goodman and Juan Gonzalez of Democracy Now! reveal in interviews with economist Robert Johnson and ColorLines Editorial Director Kai Wright , the bill leaves plenty to be desired. Dodd is currently making the rounds and declaring that his bill will end the abuses giant banks deployed against the broader economy, but the truth is, the bill has largely been gutted by bank lobbyists. Here’s Johnson:
“We’re engaged in a Kabuki theater right now, hoping the material is too complex for the American people to understand, declaring victory, and yet basically encoding into law current practices of the banks. Every one of your listeners should ask the question, given this legislation, if the President, House and Senate pass it, will we be in a place where AIG couldn’t have happened, Lehman Brothers couldn’t have happened, Bear Stearns couldn’t have happened, and, more importantly, nine, ten percent unemployment caused by the banking crisis couldn’t have happened? I argue this bill does very little.”
The importance of trust-busting
So Dodd’s bill needs to be substantially strengthened as it moves through the Senate. But there’s plenty of other economic work to be done outside of Wall Street. As Barry C. Lynn and Phillip Longman explain for The Washington Monthly, the steady expansion of corporate monopolies has resulted in a fundamentally unstable economy.
The U.S. simply does not create jobs at the rate it once did, and companies aren’t held accountable to market forces like competition. Many of our monopolies are hidden, as Lynn and Longman note. Macy’s and Bloomingdale’s seem like competitors, but they’re owned by the same holding company. The same dynamic holds true in auto manufacturing, banking, pet food, health care and IT. Consumers think they’re choosing between competing goods and services, when in fact they’re shopping in different divisions of the same corporate Goliath.
All hope is not lost. As Laura Flanders emphasizes for GRITtv, the passage of health care reform proves that the Obama administration and Congress can make substantive progressive changes when they put their minds to it. The question is whether Obama is willing to limit his economic accomplishments to lower-level issues, or go big and take on the deep-pocketed corporate campaign contributors.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Mulch: Clock Ticking for Climate Change Legislation
By Sarah Laskow, Media Consortium blogger
Seven months out from the midterms, electoral anxieties are hampering potential climate change legislation. Election years are a time to pass easy, politically popular policies, and climate change legislation does not fit that bill. For the Senate’s climate change legislation to have a chance, Congress has to sweep through the financial overhaul faster than any bill in its history. Otherwise, politicians’ focus will shift to the midterms before they pass a climate bill.
The next international climate negotiations are just weeks after the November midterms, and failure to pass a bill now means that the United States could show up once again without a solid platform from which to negotiate. After working on climate legislation for over a year, leaders on the Hill and in the executive branch are getting nervous.
At this point, any climate legislation that reaches the president’s desk will have far less impact than advocates once hoped, but Congress can still pass a bill that moves the country forward on this issue. (more…)
Weekly Diaspora: 200,000 March on DC, Call for Immigration Reform Now
By Erin Rosa, Media Consortium blogger
As the health care debate comes to a close, there’s no better time to introduce comprehensive immigration reform. Hundreds of thousands of immigrant rights supporters from all over the country congregated on the National Mall in Washington, D.C. on Sunday to demand immigration reform in 2010. It was the largest political rally to be held since President Barack Obama moved into the White House.
Dressed in white and carrying American flags, the crowd numbered between 200,000 to 500,000 people. The marchers spanned approximately 7 blocks, all the way from the Washington Monument to the steps of Congress. Although many media outlets and lawmakers were were occupied by the historic health care vote taking place in the House of Representatives on the same day, Obama took time from his busy schedule to record a video message to the marchers, in which he discussed the need for immigration reform “this year.” (more…)
Weekly Pulse: Obama Signs Health Reform Bill, Backlash Begins
By Lindsay Beyerstein, Media Consortium blogger
Yesterday, President Barack Obama signed health care reform into law. As Mike Lillis explains in the Washington Independent, the bill now proceeds to the Senate for reconciliation. The whole process could be complete by the end of the week. Republicans and their allies have already moved to challenge reform in court.
Legal challenges
The fight is far from over, however. Steve Benen of the Washington Monthly notes that Republicans have already filed papers to challenge health care reform in court. The Justice Department has pledged to vigorously defend health care reform, according to Zach Roth of TPM Muckraker. (more…)
Weekly Audit: After Health Care, the Economy
By Zach Carter, Media Consortium blogger
Now that health care reform has finally been enacted, a host of critical economic issues are taking center stage, including financial reform, unemployment and deeply rooted economic inequality. But it’s important to note that with its health care vote, the U.S. House of Representatives actually approved a very important, and often overlooked financial reform: Student lending.
Pedro de la Torre III of Campus Progress explains the current student loan nightmare in an interview with The American Prospect’s Rebecca Delaney. For years, the U.S. government has paid massive subsidies to some of the worst-run companies in the country.
Thanks a lot, Sallie Mae
As de la Torre notes, instead of directly making loans to students, the government spent years funneling money to firms like Sallie Mae to actually make the loans. When things went sour, taxpayers covered the lender’s losses from student loans that ultimately went bad.
Taxpayers were also footing the bill for the loans and taking on the risk, while private companies and their executives enjoyed the benefits. The executives made quite a haul. In 2008 alone, Sallie Mae CEO Albert Lord took home an astonishing $46 million. Even among CEOs, that’s a princely sum—more than double what Halliburton CEO David Lesar made the same year. All of that money could have financed a lot of college educations.
Fortunately, the student loan landscape is almost certain to change as a result of the health care vote. The House bill included a provision to end student loan subsidies and boost funding for direct grants from the government to students.
Since the student loan reform and health care were both eligible for reconciliation in the Senate (meaning only 51 votes are needed for passage instead of the 60 to clear a filibuster), House Democrats decided to move on both at the same time. It’s a significant reform, and one that will soon become law with President Barack Obama’s signature.
What would an overhaul of the consumer finance industry entail?
The student loan system is just one aspect of the consumer finance industry that needs a major overhaul. On mortgages, credit cards, overdrafts, and payday loans, the banking status quo is one of outright predation. As Heather McGhee of Demos explains to The Nation’s Christopher Hayes, there’s a reason why federal agencies do a lousy job regulating consumer banking abuses.
Right now there is no agency responsible for consumer protection alone. Every regulator also focuses on making sure banks don’t fail, which generally means that regulators support anything that increases short-term profits. Egregiously predatory practices generally lead to big short-term gains in banking.
A new consumer financial protection bureau
Last week, Senate Banking Committee Chairman Chris Dodd (D-CT) introduced a bill that would create a new bureau of consumer financial protection, with no constraints from bank profitability. It’s a step in the right direction, but as McGhee notes, there are plenty of problems with Dodd’s proposal. Most problematically, the bill gives existing agencies a veto power over any new consumer protection rules. That’s a terrible loophole. Existing regulators have actively opposed consumer protections in the past, and there is every reason to expect that practice to continue.
Rapid tax refunds scam the poor
It’s late March, which means tax season is getting into full swing. All over the country, mascots from Liberty Tax are spilling into the streets wearing goofy costumes, trying to win your business. But millions of Americans don’t realize that Liberty, along with H&R Block, Jackson-Hewitt and hundreds of smaller businesses are engaged in a monstrous scam disguised as a complicated accounting service.
As Alexander Zaitchik emphasizes for AlterNet, these tax preparers have used deceptive advertising and slick salesmanship to con people into taking out “refund anticipation loans,” also known as “rapid refunds” and a handful of other pleasant euphemisms. It’s a simple gimmick: H&R Block does your taxes, and then presents you with your tax refund, right away, no waiting. But the check you receive is not actually your tax refund—it’s your tax refund minus a truckload of fees that you didn’t realize were being deducted. This is the tax-time equivalent of payday lending.
When the government sends in your actual, larger tax refund one-to-two weeks later, you won’t see it—it goes straight to H&R Block’s bank partner. Those banks are making big money taking from your tax returns. Here’s Zaitchik:
“In 2008, more than eight million Americans spent nearly a billion dollars paying interest and fees on RALs—often based on misleading or incomplete information—swelling the profits of tax preparers and their partner banks.”
The one break low-income people get under the U.S. tax code is the Earned Income Tax Credit (EITC), the nation’s largest anti-poverty program. Only about 16% of taxpayers qualify for the EITC, but as Zaitchik notes, nearly two-thirds of the people who take out refund anticipation loans receive the credit. Tax preparers are making a concerted effort to prey on the poor, making the EITC program more expensive and less efficient for all taxpayers—not just those who go to H&R Block or Liberty Tax.
More action needed on jobs
Beyond finance, the U.S. economy has a serious jobs problem. Last week, Congress approved an $18 billion jobs package that is simply far too small to make a serious dent in the nearly double-digit unemployment rate. As Art Levine explains for Working In These Times, the package will create 250,000 jobs at best. That number shouldn’t be acceptable to anyone watching the U.S. economy, which has shed about 7 million jobs since the recession began.
There are much stronger options available than the $18 million bill the Senate approved. Rep. George Miller (D-CA) has introduced a bill in the House that would quickly save or create one million jobs, and the House has already passed a separate $154 billion jobs package that would prevent 900,000 lay-offs. If the Senate moved on either one, the result would be a major economic boost.
The link between poor economies and poor health
All of these problems—unemployment, student loan scamming, refund anticipation loan sharking and other forms of financial predation—reinforce economic inequality in the United States, which is at levels unseen since before the Great Depression. That inequality is ultimately actively damaging to public health, as epidemiologist Richard Wilkinson explains in an interview with Brooke Jarvis for Yes! Magazine. Rampant economic inequality in the United States is literally making us sick.
“We looked at life expectancy, mental illness, teen birthrates, violence, the percent of populations in prison, and drug use,” Wilkinson says. “They were all not just a little bit worse, but much worse, in more unequal countries.”
With health care finally finished, Congress and the administration have an opportunity to make serious headway on the economy. They’ve got plenty of work to do.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Sneak Peek: What will the progressive media sector look like in 2015?
A few weeks ago, The Media Consortium held its annual member meeting in NYC. Despite the raging blizzard that hit the city the day of the meeting (what timing!) over 70 individuals from more than two dozen organizations traveled from across the country for the two day event. This meeting marked the fifth anniversary of The Media Consortium, which was a great time to reflect on where we’ve been as an organization and a sector and how we are going to move forward together. The meeting gave us a sneak peek of the big changes to expect for the progressive media sector during the next few years.
The Pulse: House Passes Health Care Reform
By Lindsay Beyerstein, Media Consortium blogger
Last night, the House of Representatives passed comprehensive health care reform after more than a year of fierce debate. The sweeping legislation will extend coverage to 32 million Americans, curb the worst abuses of the private insurance industry, and attempt to contain spiraling health care costs.
The main bill passed the House by a vote 219 to 212, after which the House approved a package of changes to the Senate bill by a vote of 220 to 211. On Tuesday, President Barack Obama will sign the main bill into law. Then, the Senate will incorporate the House-approved changes through filibuster-proof budget reconciliation, perhaps as early as this week. (more…)
Weekly Mulch: Bad News Bill
By Alison Hamm, Media Consortium blogger
Sens. John Kerry (D-MA), Lindsey Graham (R-SC), and Joe Lieberman (I-CT) met with industry groups Wednesday evening to discuss their much anticipated tripartisan climate legislation. Based on leaks from the meeting, it sounds like the climate bill will be incredibly industry friendly, which may mean that the bill does little to help the environment.
A syncing feeling
According to reports from sources in the meeting room, the bill calls for greenhouse gas curbs across multiple economic sectors, with a 2020 target of reducing emissions by 17 percent below 2005 levels and an 80 percent reduction by 2050. Power plant emissions would be regulated in 2012, other major industrial sources will be phased in during 2016. (more…)
Weekly Diaspora: No Sleep ‘Till March on Washington
By Erin Rosa, Media Consortium blogger
This Sunday, tens of thousands of people plan to march on the National Mall in Washington, DC in an effort to persuade Congress and the Obama administration to tackle immigration reform in 2010. More than 700 buses are bringing an estimated 100,000 supporters to the nation’s capital for the March for America. Participants are hoping to show strength in numbers on the ground, and flex muscle on Capitol Hill as well.
Advocacy groups are organizing countless phone banks and Congressional office visits to encourage lawmakers to support a pathway to citizenship for the estimated 12 million undocumented immigrants who live and work in the United States.
On top of that, immigrant rights supporters are eager to note that President Barack Obama promised to overhaul the immigration system during his campaign, and said that immigration reform would be a “top priority in my first year as President of the United States of America.” But now that year has passed, and with Congress still deadlocked on health care and economic issues, reform supporters just can’t wait any longer. (more…)