Weekly Audit: Attack of the Imaginary Budget Demons

Posted Feb 9, 2010 @ 10:04 am by ZachCarter
Filed under: Economy     Bookmark and Share

By Zach Carter, Media Consortium Blogger

On Feb. 1, President Barack Obama unveiled his 2011 budget proposal. While conservative pundits reacted with predictable, yet preposterous, wailing about the federal budget deficit, the short-term U.S. budget outlook is just fine. If anything, Obama’s budget doesn’t dedicate nearly enough funding to create jobs.

As John Nichols notes for The Nation, Obama budgets just $100 billion for jobs in fiscal 2011. The amount is nowhere near enough to make a significant dent in the epic unemployment rate. The government’s fiscal 2011 calendar begins in October of this year, and by that time, the stimulus package Obama pushed through in February of 2009 will have been exhausted, leaving the labor market without serious support from the federal government.

The free market isn’t going to take care of the jobs shortage on its own. While the unemployment rate fell from 10.0% to 9.7% during January, the “improvement” is really just a statistical mirage—the economy actually lost 20,000 jobs during the month.

If we had pushed through a bigger, or as Nichols notes, a better stimulus package in the first place, we might not be facing the same situation today. Part of the problem is that Obama redirected about $326 billion of the $787 billion bill away from direct job-creation efforts toward a set of tax cuts intended to appease Republican senators.

Tax cuts do not equal job growth

But as Art Levine emphasizes for Working In These Times, the $100 billion that Obama sets aside for job creation in 2011 appears once again to take the form of relatively inefficient tax cuts. Giving money to businesses, even small businesses, isn’t really going to make them start hiring unless there’s a real demand for what those businesses produce. When everybody is broke and out of work, that demand doesn’t exist, since people don’t have money to spend.

If the government wants to create jobs, it has to do it directly by hiring people to help rebuild the nation’s infrastructure through institutions such as schools, transportation and green energy. Just as important, the federal government can provide funding to state and local governments to make sure that jobs that serve our communities—teachers, cops, etc.—don’t disappear.

Sure, these things cost money. But the short-term budget deficit is nowhere near the current deficits of many European nations, or the deficits the U.S. ran during World War II. The budget deficit only matters to economics insofar as it raises concerns that the government will not be able to pay back its debt. But despite caterwauling from the right, investors just aren’t worried about a U.S. debt default. If they were, they would demand very high interest rates on Treasury bonds, and Treasury rates are at their lowest levels in decades.

If policymakers want to keep the jobs bill from running the deficit higher, they could always raise taxes on somebody. Financial speculation on Wall Street seems like a good place to start, but just about any tax on the wealthy would work fine. Rich people don’t get hammered by recessions. After all, they’re rich.

Overzealous tax cuts hurt communities

In a piece for AlterNet, David Sirota details the budgetary disaster that has already befallen the city of Colorado Springs, CO., a conservative enclave where anti-tax extremists have managed to slash just about every basic government service imaginable. Rather than impose some modest taxes on the wealthy, Colorado Springs is going to lay off cops and firefighters, let its parks go to waste, shut-down rec centers and museums and even allow its streetlights to go out. This is the Republican plan for fiscal responsibility.

But several state governments recognize that shredding the social fabric just isn’t a good idea. In Oregon, Sirota notes, voters just approved two ballot initiatives to raise taxes on corporations and wealthy individuals rather than allow their state to slide into social decay.

How to deal with a deficit

There are two ways to increase a budget deficit: You can either increase spending, or cut taxes. If you want to decrease the budget deficit, you can either cut spending, or raise taxes. As Kevin Drum notes for Mother Jones, Republicans both increased spending and cut taxes during the George W. Bush presidency. Now those same so-called fiscal conservatives are feigning outrage over the prospect of the government actually spending some money to put people back to work. These are not serious economic arguments—conservative politicians are just hoping to gut progressive policy priorities.

But while the attacks don’t hold any water, conservative media outlets are latching on to them, and Obama isn’t pushing back.

What caused the current crisis

Writing for The American Prospect, Robert Kuttner notes Obama’s recent support for a proposal from right-wing deficit hawks to create a commission to evaluate the causes of our so-called fiscal crisis. But we already know what put us in the current fiscal situation: Rising health care costs, a brutal recession, and the Bush era. The commission is being pushed by radical conservatives for a reason—it’s part of an effort to gut Social Security. It’s bad economics, bad public policy and it badly misreads the real source of public discontent. Kuttner explains:

“Public concern about deficits is really a proxy for broader unease that government is not delivering enough practical help . . . . The president should be helping citizens sort this out, not caving in to the fear-mongers.”

Fortunately, as Steve Benen notes for The Washington Monthly, Senate leaders appear committed to passing at least some kind of legislation to help put people back to work.

Whatever right-wing pundits say, the U.S. fiscal crisis remains a totally theoretical problem. Someday, if the U.S. budget does not come down, it is conceivable that investors would be reluctant to purchase U.S. debt. For now, that is simply not the case. But the crisis in the job market is very real and requires direct action. Put simply, the deficit is no excuse for inaction.

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: What’s Missing from the New Clean Energy Agenda?

Posted Feb 5, 2010 @ 11:46 am by Sarah Laskow
Filed under: Sustain     Bookmark and Share

By Sarah Laskow, Media Consortium Blogger

Photo courtest of Flickr user Joost J. Bakker IJmuiden via Creative CommonsNuclear power, biofuels, clean coal: These are the Obama administration’s answers to climate change. The 2011 budget, released this week, promised new loans for the construction of nuclear power plants, and on Wednesday the Environmental Protection Agency (EPA), White House, and other departments detailed steps to encourage ethanol and clean coal production.

These initiatives may garner support from conservatives, but their ascendancy comes at a price. Support for renewable fuel sources, like wind and solar, has dwindled. President Barack Obama did encourage Senate Democrats to pass a climate change bill, but some moderates are bucking the cap-and-trade provisions that could tamp down carbon emissions. Those moderates are pushing for legislation that leaves carbon caps out entirely.

It hasn’t been a good week for climate advocates. On top of the Obama administration’s overtures to crusty, old energy industries, Rajendra Pachauri, the chairman of the Intergovernmental Panel on Climate Change (IPCC), has had to fend off pressure to resign. The IPCC published a report with a badly sourced fact about the rate at which Himalayan glaciers are melting, and when scientists pointed out the error, Pachauri would not cop to the mistake. (If you missed the beginning of this to-do, Mother Jones‘ Kate Sheppard covered the controversy back in January.)

Given this country’s weak efforts to tamp down carbon emissions, though, perhaps the IPCC’s prediction that those glaciers likely will disappeared by 2035 will turn out to be accurate.

New nuclear plants—but at what cost?

Obama’s budget, as Sheppard reports at Mother Jones, is upping funding for nuclear plant development, even though previous nuclear projects have run wildly over budget. The president has always supported increased nuclear production. As an Illinois Senator, Obama had Exelon Corporation, the country’s largest nuclear operator, in his constituency. The company continued to support him as a presidential candidate. The proposed funding runs in the neighborhood of $54.5 billion in loan guarantees for nuclear projects. That’s good news for an industry that’s in need of cash. As Sheppard explains, without governmental backing, these plants would have little chance of being built.

Even as public opinion toward nuclear power has warmed, projected construction costs for new plants have soared, with a single reactor now estimated to cost as much as $12 billion,” she writes. “In fact, the outlook for nuclear plants looks so dire that even Wall Street banks have balked at financing them unless the government underwrites the deal.”

The Obama administration is also backing research into nuclear waste disposal, a prerequisite for nuclear expansion. No matter how “green” nuclear energy production might be, so far there’s no safe, sustainable way to deal with its by-products. Finding a long-term solution for nuclear waste disposal will not come cheaply.

Biofuels move us backwards

The administration’s support for biofuels was bigger slap in the face to environmentalists, though. Just a few years ago, ethanol made from corn or switchgrass ranked high on the list of renewable fuels that could spring America from its Middle East oil addiction. In practice, however, biofuels have proven more environmentally destructive and less efficient than advocates had hoped. With farmers in the Midwest knee-deep in corn marked for ethanol production, though, backing away from biofuels is politically dicey.

The consequences are more than political, however. At Grist, Tom Philpott argues that support for biofuels will ultimately drive global carbon emission up, rather than down.

“As ethanol factories continue sucking in more and more corn, plantation owners in places like Brazil and Argentina will put more grassland and even rainforest under the plow to make up for the shortfall, resulting in huge carbon emissions,” Philpott writes. “That dire effect of our ethanol program, known as indirect land-use change, likely nullifies any scant climate benefits from ethanol.”

It’s not just corn and switchgrass that pose a problem, either. As Gina Marie Cheeseman reports at Care2, algae farms, another potential source of biofuel, face their own challenges. Algae demands high energy input and could release more carbon dioxide emissions that it would save, according to a new report from the University of Virginia.

There’s more research to be done before writing algae energy production off, however. In January, the Department of Energy said it would sink $44 million into work on algae pools. Industry players like ExxonMobile are also underwriting research on the subject, Cheeseman writes.

No room for innovation

Moving towards energy sources like nuclear power and ethanol does take the country a step closer to responsible energy production. But right now, the Obama administration is not leaving room for new or ambitious ideas that could do more. Wind and solar, which would form the best foundation for a sustainable energy future, have few advocates in Congress. They also seem to have no role in the near-term energy plan.

Ethanol was the Midwest’s first green industry, for instance, but there are other possibilities for juicing up the region’s clean energy production. In The Nation, Lisa Margonelli lays out the case for “gray power,” which is recycled energy produced by the old, dirty smokestacks that ring cities like Cleveland.

In this vision, twentieth century industry can produce twenty-first century energy. Waste energy, Margonelli argues,  “can be profitably “recycled” onto the grid to create power as clean as that from solar and wind but far cheaper.”

“In fact, energy now lost as steam and gases by the region’s manufacturing plants, as well as municipal and agricultural waste, could create as much energy as sixty-nine nuclear power plants, according to figures commissioned by the Environmental Protection Agency,” she says. “This power could strengthen the region’s electrical grid and preserve jobs by making local manufacturing plants more economically stable, while making the region a leader in greener technology.”

A project like Margonelli imagines, however, would require significant commitment and vision from the federal government, both of which are lacking right now.

This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Pulse: Who are Landrieu’s Alleged Phone Tamperers?

Posted Feb 3, 2010 @ 12:59 pm by Lindsay Beyerstein
Filed under: Health Care     Bookmark and Share

Sen. Mary Landrieu (D-LA), Photo by Lindsay Beyerstein

By Lindsay Beyerstein, Media Consortium Blogger

The four young men arrested last week for allegedly attempting to tamper with the phones at the office of Sen. Mary Landrieu (D-LA) have ties to Republican politicians, conservative think tanks, radical campus activists, and even the intelligence community.

It appears that Landrieu was targeted, at least indirectly, because of her stance on health care reform. Two of the men posed as telephone repairmen while a third taped them with his cell phone. A fourth alleged accomplice was arrested in a car a few blocks away.

Right wing operative James O’Keefe, famous for posing as a pimp to “expose” unethical behavior at the anti-poverty group ACORN, claimed that he and his crew were trying to expose a problem with the phones at Landrieu’s office which were keeping constituents from reaching her.

Constituents getting a busy signal?

O’Keefe says they wanted to embarrass Landrieu by exposing whatever was wonky about her phones, but that justification strains credulity. Defenders of the four implied that Landrieu’s people might have somehow disabled their own phones to avoid angry constituents. Supposedly, these citizens wanted to express their outrage at Landrieu’s decision to vote for the Senate health reform bill in exchange for a line item to give Louisiana an additional $300 million federal health care dollars.

Some callers have reported trouble getting through to their representatives. Stephanie Mencimer of Mother Jones reports that members of the Tea Party movement have complained to her about not being able to get through to their members of congress. She tried calling some senators and also had a hard time getting through to a real person.

Now that he’s out of jail, O’Keefe is furiously spinning his activities as investigative journalism gone awry, according to Justin Elliott of TPM Muckraker. O’Keefe told Sean Hannity in an interview that these tactics were standard journalistic tools. But let’s be realistic, here. Impersonating a repairman to covertly access a Senator’s phones is more Watergate burglar than Woodward and Bernstein.

O’Keefe’s activist theater

O’Keefe and his buddies are political operatives who come out of the world of right wing campus organizing, as Dave Weigel reports for the Washington Independent. Over the years, they’ve earned notoriety by using various forms of political theater and media to advance their issues. O’Keefe and Ben Wetmore, a fellow activist who let the alleged tamperers crash at his house before the Landrieu operation, even got married to each other to illustrate that shady people can marry each other for benefits, just like with straight marriage. On his now-defunct blog, Countermedia, Wetmore urged conservative activists to target seniors with a health care robocall featuring a Barack Obama impersonator.

The Landrieu crew is no stranger to more traditional forms of conservative politics, either. O’Keefe and Wetmore both formerly worked for the conservative Leadership Institute, a group that funds political training for right wing activists. Fake repairman Robert Flanagan interned for Republican Senator Lamar Alexander and a GOP congresswoman. O’Keefe was revealed to be on the payroll of the right wing news site Big Government at the time of his arrest.

The Landrieu incident is a continuation of their campaign to use guerrilla video for political dirty tricks. O’Keefe became famous last year for videos that appear to show him dressing up as a pimp and soliciting questionable advice from ACORN staffers. The video touched off a panic that led to ACORN’s federal funding being yanked.

Links to the intelligence community

Maybe they hoped to make the news rather than break it. The men are charged with attempting to tamper with Landrieu’s phones, not just observe them. As I reported for AlterNet last week, one of the alleged tamperers has longstanding ties to the intelligence community.

In 2008, Stan Dai was the deputy director of a recruiting program for aspiring spies at Trinity Washington University. As Sahil Kapur reported in Raw Story, this program was funded by a $250,000 grant from the Office of the Director of National Intelligence.

Yesterday, Laura Flanders interviewed Dr. David Price and me on GRITtv about the links between O’Keefe’s crew and the intelligence community. Dr. Price is an anthropologist who studies the relationship between the intelligence community and academia. He has been keeping a close eye so-called “centers of academic excellence” funded by the intelligence community on college campuses.

Right now, most of what we know about the incident comes from a single affidavit from an FBI officer and leaks from law enforcement. We’ll probably learn a lot more about the men and their motives if they go on trial.

‘Very, very close’ to passing reform

In other health care news, Speaker Nancy Pelosi (D-CA) told participants on a conference call yesterday that Democrats are “very, very close” to passing health care reform. According to Steve Benen of the Washington Monthly, who was on the call, Pelosi signaled that the House will not pass a bill until the Senate passes a list of modifications to be reinserted during budget reconciliation. Brian Beutler of TPM DC reports that progressives shouldn’t get their hopes up for reviving the public option: Pelosi conceded that a public option lacks the necessary support in the Senate.

This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Audit: Don’t Let Citizens United Wreck Our Economy

Posted Feb 2, 2010 @ 9:26 am by ZachCarter
Filed under: Economy     Bookmark and Share

By Zach Carter, Media Consortium Blogger

Image courtesy of Flickr user dbkingIn a landmark decision last week, the Supreme Court ruled that corporations could spend unlimited funds to influence American elections, overturning a century of legal precedent. The Court’s ruling in Citizens United v. FEC undermines the integrity of the U.S. government, as President Barack Obama emphasized at his State of the Union address. But the decision also deals a damaging blow to the U.S. economy by encouraging lawmakers to write economic rules that benefit specific companies at the expense of everyone else.

The editors of The Nation lay out the High Court’s hubris in no uncertain terms:

The Citizens United campaign finance decision by Chief Justice John Roberts and a Supreme Court majority of conservative judicial activists is a dramatic assault on American democracy, overturning more than a century of precedent in order to give corporations the ultimate authority over elections and governing. This decision tips the balance against active citizenship and the rule of law by making it possible for the nation’s most powerful economic interests to manipulate not just individual politicians and electoral contests but political discourse itself.

Citizens United and the financial crisis

How does this ruling have any bearing on the economy? Markets are not simply the product of random interactions between consumers and producers. Even under the most radical, laissez-faire economic theories, markets are defined, coordinated and policed by the government. For the economy to function at all, we need the government to define what constitutes fair play.

But over the past few decades, we’ve watched Congress and the executive branch rewrite those rules of the game under heavy corporate influence, creating artificial profits for a set of favored companies with very bad consequences for the broader economy.

The U.S. banking industry serves as a prime example. Since the 1980s, banks have been spending like crazy in all kinds of elections, and getting just about anything they want in return. I interviewed Harvard University Law Professor and TARP Oversight Panel Chair Elizabeth Warren for AlterNet, and she presented a concise but unsettling economic history of consumer protection law:

Thirty years ago we had laws that put some basic fairness into the consumer credit market. Over time, the large financial institutions captured the regulators who were supposed to be the cops on the beat to enforce those laws. They also pumped hundreds of millions of dollars into Washington to make sure that no new cops were put on the beat. Without good laws, the industry started selling ever-more-deceptive products, and their friendly regulators looked the other way.

The bank lobby and the AIG bailout

In Mother Jones, Corbin Hiar reveals how even a bank that engineered a massive tax fraud scheme was able to benefit from the AIG bailout. Major financial institutions convinced Congress to block any regulation of credit default swaps (CDS) all the way back in 2000. CDS contracts were essentially insurance on the value of financial assets—if the assets lost value, banks would still get paid as if they were highly profitable.

CDS insurance encouraged banks to engage in risky mortgage lending, and allowed them to book huge profits on those risky mortgages during the housing boom, even though many of those mortgages were doomed from the get-go. AIG binged so heavily on CDS that the company was on the brink of bankruptcy in the fall of 2008. But an AIG bankruptcy would have hammered the major banks who served as AIG’s betting partners, most notably Goldman Sachs. Those banks would have received just pennies on the dollar from a bankrupt AIG. But under the bailout, the New York Federal Reserve paid the banks off at full value, without demanding any concessions whatsoever.

“The credit crunch was an existential threat to every over-leveraged big bank. What’s most shocking about the AIG bailout … is that these endangered banks were able to extract such a sweet deal from the government,” Hiar writes. “The banks were paid the full value of all the CDS contracts they had made with AIG—including those mortgage-backed securities they had bought when it was clear the subprime market was collapsing.”

The only AIG counterparty to even consider taking CDS losses was Swiss banking giant UBS, which was negotiating a separate settlement with the U.S. government over a massive tax evasion scheme. But even the tax fraudsters at UBS ultimately received full payment on their CDS exposure, and it now appears that the Swiss bank will be able to protect its wealthy tax-evading clients.

With the AIG bailout, the corporate takeover came full-circle. The banks purchased radical deregulation in Congress, and when the deregulated banks destroyed themselves, the government paid out billions to save them. The rest of the economy was ravaged by predatory lending, and taxpayers, not bankers, footed the bill for bank losses.

Redefining corruption

So the Citizens United decision will not introduce corporate influence in elections. Instead, it takes an uneven playing field and tilts it further in the favor of corporate executives. The Roberts court didn’t just open the floodgates for corporate cash in U.S. elections and call it a day. It also explicitly redefined “corruption” to give corporations—and anyone else—greater leeway to financially curry favor with politicians. Heather K. Gerken details the new definition for The American Prospect:

The most important line in the decision … was this one: “ingratiation and access … are not corruption.” For many years, the Court had gradually expanded the corruption rationale to extend beyond quid pro quo corruption (donor dollars for legislative votes). It had licensed Congress to regulate even when the threat was simply that large donors had better access to politicians or that politicians had become “too compliant with the[ir] wishes.” Indeed, at times the Court went so far as to say that even the mere appearance of “undue influence” or the public’s “cynical assumption that large donors call the tune” was enough to justify regulation. “Ingratiation and access,” in other words, were corruption as far as the Court was concerned.

Most of us would consider the key lawmakers ensnared in the Jack Abramoff scandal as fundamentally corrupt—Abramoff flew former Republican Whip Tom DeLay of Texas to Scotland for golfing vacations in an effort to win greater leverage over DeLay’s legislative agenda. The court’s ruling claims that this kind of activity is not corrupt, and bars Congress from passing any laws to counteract it. As filmmaker Alex Gibney emphasizes in an interview with Amy Goodman of Democracy Now!, the court has essentially taken Tom DeLay’s corporatist philosophy and made it a piece of constitutional law.

“Tom DeLay’s view is, we spend more money on potato chips than we do on political campaigns. His view would be, let the money rush down like great waters,,” Gibney says. “I think the court was channeling Tom DeLay when they issued their recent decision.”

Why citizens need to speak out now

So what can we do about this? As GRITtv’s Laura Flanders discusses in a roundtable discussion with several progressive leaders, there will be a long fight for a Constitutional Amendment to ban corporate influence in politics. Until then, as progressive strategist Mike Lux explains, citizens will have to take an aggressive stance against Corporate America as shareholders. Corporate power is exercised by a handful of executives, but the resources that support that power come from ordinary Americans who own stock in those companies, primarily through retirement plans. By demanding that the giant firms we own do not highjack our democracy with lobbying, we can limit some of the damage from the court’s recent decision.

If you liked the bank bailouts, then there’s plenty for you to love about the Citizens United decision. If you didn’t, then it’s time to speak up.

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: Climate Change On Obama’s Back Burner

Posted Jan 29, 2010 @ 12:04 pm by Sarah Laskow
Filed under: Sustain     Bookmark and Share

By Sarah Laskow, Media Consortium Blogger

In his first State of the Union address, President Barack Obama touched on climate issues only briefly. He called on the Senate to pass a climate bill, but did not give Congress a deadline or promise to veto weak legislation. Nor did he mention the Copenhagen climate conference, where international negotiators struggled to produce an agreement on limiting global carbon emissions.

The Obama administration’s attitude towards climate change still represents a remarkable shift from the Bush years, when global warming was treated as little more than a fairy tale. But in the past year, Congressional squabbling has stalled climate legislation, and international negotiators nearly gridlocked in talks over carbon admissions at the multinational Copenhagen conference. Without strong leadership from the president, work to prevent this looming environmental crisis will stall.

Obama did address global warming skeptics, saying that they should support investment in clean energy, “because the nation that leads the clean energy economy will be the nation that leads the global economy.”

“And America must be that nation,” Obama said.

No push for climate bill

Despite his combative language,  the president did not challenge Congress to push for real solutions to ballooning carbon emissions and energy consumption. As Forrest Wilder of The Texas Observer notes, Obama “uttered the phrase ‘climate change’ precisely once.”

The Senate has already wait-listed the climate bill: Health care came first. With health care reform now in line behind work on jobs and bank regulation, climate legislation has little chance of passing the Senate in the coming months, let alone making it to the president’s desk.

If Congress lets this work wait until after the midterm elections, the United States will show up at international negotiations in December 2010 as a leader in carbon emissions yet again, but with little in hand to show a way forward.

Clean energy, not renewable energy

When the president did bring up climate issues, he focused on their connection between climate reform and potential job creation. Obama highlighted areas for growth, not in renewable energy fields like wind or solar power, but in nuclear power, natural gas, and clean coal.

Yes, these fuel sources could decrease the country’s carbon emissions. But they are not solutions that will revolutionize energy production. Grist’s David Roberts was floored that the speech omitted renewable energy entirely and kowtowed to a more conservative litany of energy projects. “I suppose it was done to flatter conservative Senators that will have to vote for the bill Kerry, Lieberman, and Graham are working on,” he writes. (The three Senators are working on a version of the climate bill designed to appeal to Republicans.)

“But the SOTU is not a policy negotiation,” Roberts says. “It’s a bully pulpit, a chance to shape rather than respond to existing narratives.”

Roberts argues that progressive supporters would benefit from a stronger message. If activists knew that the White House stands behind a real shift in America’s energy policy, they could use that prompt to drive action on climate change.

What was missing

While touting the virtues of off-shore drilling, Obama overlooked other policies that could broker real change. Although he admonished Congress to pass a climate bill, he did not pressure the legislature on what he’d like that bill to include. He did not mention cap-and-trade, the mechanism the House bill relies on to tamp down emissions and dirty energy use.

President Obama did touch on transportation reforms that could decrease the country’s use of fossil fuels.

“There’s no reason Europe or China should have the fastest trains,”  Obama said. He cited a high-speed rail project that broke ground on Tuesday in Tampa, FL, as evidence that America could best the rest of the world in creating new energy-efficient technology.

But one or two high-profile projects won’t be enough to challenge Europe’s network of high-speed trains or China’s investments in solar power. The White House could put the country at the forefront of sustainable technologies, but it’ll take more money than the president has committed. In AlterNet’s ideal state of the union, projects like the railway would merit sustained attention and funding. Funding for the high-speed train came from this year’s stimulus bill, and there’s no guarantee that similar projects will find federal funding in the future.

“Continued support is still needed” for green jobs and clean energy, Alternet’s editorial staff argues. “It’s unclear yet how Obama’s new proposal for a three-year spending freeze will apply to this sector, but a boost is what is needed, not cuts.”

Green jobs

Michelle Chen argues for In These Times that the president is right to subordinate climate issues to economic policy. “The jobs angle is more than sugar-coating,” she says. A recent Pew Research Center poll put climate change at the end of Americans’ long list of cares, and a Brookings Institution study found that they’re no longer willing to pay as much for greener products.

Jobless workers need green in their pockets most of all, and so far politicians’ promises haven’t made up for the slack economy.

“No matter how slick the marketing, confidence in green jobs may wilt even further absent real investments in the beleaguered blue-collar workforce,” Chen writes.

Copenhagen accord losing momentum

The small role that climate change played in the state of the union address only emphasized the downward momentum of the issue since the United Nations conference on global warming in Copenhagen. Grist’s Jonathan Hiskes talked to six leaders in climate change activism, and none of them offered a different strategy than they had last year.

That same stasis is showing up in Europe, as well. Spain, which currently leads the European Union, proposed that the European Union’s negotiating position should remain the same as its position before the Copenhagen conference, according to Inter Press Service.

Sen. John Kerry (D-MA), who’s working on climate change legislation in the Senate, offered advice to climate activists at a clean energy forum in Washington, DC on Wednesday. Mother JonesKate Sheppard reports that Sen. Kerry encouraged his audience to get angrier, louder, and more active, in the mode of the conservative Tea Partiers, who have earned plenty of attention. After his speech, he also recalled the tactics that pushed landmark legislation like the Clean Air Act through Congress.

If climate change is going to play a larger role in the next state of the union, the citizens and groups concerned about this issue need to do something to put it on the agenda. Otherwise, next year, the president may find it just as easy to skim over it again.

This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Pulse: Did Wiretappers Target Landrieu Over Health Care Deal?

Posted Jan 27, 2010 @ 12:01 pm by Lindsay Beyerstein
Filed under: Health Care     Bookmark and Share

By Lindsay Beyerstein, Media Consortium Blogger

The conservative videographer who donned a pimp suit to embarrass the anti-poverty group ACORN was arrested in New Orleans, LA for allegedly conspiring to bug the office of Democratic Sen. Mary Landrieu.

It’s not clear why Landrieu was targeted, but many suspect that she was singled out because she played a pivotal role in advancing health care reform.

Filmmaker James O’Keefe and three other men have been charged with been charged with entering federal property under false pretenses for the purpose of committing a felony, according to Justin Elliott of TPM Muckraker. At RH Reality Check, Rachel Larris notes that, if convicted, the four could face up to 10 years in prison.

Like chum in the conservative shark tank

Landrieu, a conservative Democrat, negotiated an extra $100 million in Medicaid funds for Louisiana in exchange for allowing the health care bill to come to the senate floor. Accepting health care for the poor in the interest of health reform was like chum in the conservative shark tank.

Rush Limbaugh called her the most expensive prostitute of all time. “She may be easy, but she’s not cheap,” crowed Glenn Beck. It got so bad that Democrats call on Sen. David Vitter (R-LA) was called upon to denounce the chorus of conservatives attacking his fellow Louisiana senator as a prostitute. (Correction: Vitter did not call Landrieu a prostitute.)

O’Keefe must have realized that an exposé of Mary Landrieu would be a hot commodity.

“This is Watergate meets YouTube,” said Mother Jones Washington Bureau Chief David Corn said on MSNBC’s Hardball last night.

Visit msnbc.com for breaking news, world news, and news about the economy

Health care reform in limbo

The arrests could not have come at a better time for the Democrats. Health care reform is in limbo as congressional leaders plan their next move after losing their filibuster-proof majority. The bugging scandal is deflecting attention from tense internal negotiations.

Brian Beutler of TPMDC reports that the House Democrats are converging on a strategy to get reform done: The House will pass the Senate bill and the Senate will fix it through budget reconciliation.

The Republican counter-strategy

While the Democrats agonize over what to do next, that senate Republicans are honing strategies to thwart any Democratic attempt to pass health care reform through budget reconciliation, as Dave Weigel reports in the Washington Independent. The reconciliation process allows both sides to vote on unlimited number of amendments. GOP leadership is hinting that if Dems take the reconciliation route, they will be forced to vote on every politically embarrassing amendment the opposition can dream up.

The stakes are high. In the American Prospect, Paul Starr reminds progressives that there’s till a lot worth fighting for, even without a public option. For all its faults, the Senate bill would still cover 30 million uninsured Americans, expand Medicaid, end discrimination based on preexisting conditions, and set up exchanges designed to keep rising insurance premiums in check.

A memo for reform

Finally, our sources tell us that Steve Benen of the Washington Monthly is making quite a stir on Capitol Hill with his memo advising the House Democratic caucus on the need to forge ahead with health care reform. In 1994, conservative commentator William Kristol wrote a health care memo to Republicans that became the backbone of their anti-reform strategy, even up to the present day. Benen hopes his memo will be a useful counterweight for Democrats. Benen warns the Democrats that it’s far riskier to fail than to pass reform that doesn’t please everyone.

This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Audit: Just Who is Obama fighting for?

Posted Jan 26, 2010 @ 11:50 am by ZachCarter
Filed under: Economy     Bookmark and Share

By Zach Carter, Media Consortium Blogger

Progressives have waited a year for President Barack Obama to roll up his sleeves and fight for serious financial reform. Last week, he finally jumped in the ring, telling weak-kneed Senators to stand up to Wall Street and endorsing a critical ban on risky securities trading.

But while it was good to see Obama start throwing financial punches against the banks, this week he also started throwing them at workers. His recent rhetoric on implementing a spending freeze to reduce the deficit is an economic catastrophe in the making. It indicates that Obama is willing to sacrifice jobs to try and win over Republicans.

A spending freeze would kill jobs

A three-year spending freeze is crazy talk. It’s a right-wing ideologue’s dream that accomplishes nothing and drives millions of people out of work. John McCain campaigned on it during his 2008 presidential run. Our long-term deficit problems are tied to the rising cost of health care. If you want to fix the deficit, fix health care. In the short-term, there is no deficit problem. In fact, the U.S. fiscal position looks very good compared to many European nations.

As Matthew Rothschild notes for The Progressive, a spending freeze would kill any legislation to create jobs. With unemployment at 10%, the economy desperately needs another round of government spending to put people back to work. While the abrupt policy reversal is clearly a political ploy, voters care much more about results than they care about ideology. If Obama actively sabotages the job market to win over conservative deficit-hawks, he’ll be putting his political future in serious jeopardy.

And yet, as Steve Benen notes for The Washington Monthly, Obama’s recent, ramped-up rhetoric against banks still marks a significant change in tone. For most of the year, Obama hasn’t been involved in the financial reform debate at all, letting Treasury Secretary Timothy Geithner capitulate to Wall Street and the politicians it owns. Benen highlights the end of Obama’s speech announcing his new banking rules on Jan. 21. Obama says:

So if these folks want a fight, it’s a fight I’m ready to have. And my resolve is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see soaring profits and obscene bonuses at some of the very firms claiming that they can’t lend more to small business, they can’t keep credit card rates low, they can’t pay a fee to refund taxpayers for the bailout without passing on the cost to shareholders or customers — that’s the claims they’re making. It’s exactly this kind of irresponsibility that makes clear reform is necessary.

Saving the CFPA

Katrina vanden Huevel lays out Obama’s new financial reform agenda in a column for The Nation, praising a new $117 billion tax on the nation’s largest banks, a plan to cap overall bank size, and a proposal to ban high-risk trading by economically essential commercial banks (more on that later).

But vanden Huevel also rightfully denounces recent indications that Senate Banking Committee Chairman Chris Dodd (D-CT) may cave to lobbyist pressure and drop the measure to create a new Consumer Financial Protection Agency (CFPA) from the Senate’s financial reform bill.

The death of the CFPA would be a devastating blow to reform. Existing bank regulatory agencies see their primary job as protecting bank profits, meaning that any time the interests of the U.S. consumer conflict with those of bank balance sheets, the regulators have shafted consumers. Current federal banking regulators not only failed to enforce consumer protection laws, they went so far as to join the bank lobby in suing state regulators who were trying to protect households from predatory lending.

Fortunately, Obama isn’t taking Dodd’s bank lobby-induced cowardice sitting down. At Talking Points Memo, Rachel Slajda highlights a New York Times report that claims Obama met with Dodd and told him that the CFPA is a “non-negotiable.”

Commercial banks are important

There’s a lot to like in Obama’s plan to bar commercial banks from participating in risky securities trading. As I emphasize in a piece for AlterNet, commercial banks form the backbone of the U.S. economy. They’re the institutions that accept your paychecks as deposits and keep businesses moving with loans. They also form the core of the economy’s payments system. Without commercial banks, nobody can pay anybody else for goods and services—the economy literally shuts down.

Nevertheless, in the late 1990s, regulators and lawmakers tore down the walls between commercial banking and riskier, complex securities trading, allowing these critical economic utilities to gamble in the capital markets like high-flying hedge funds. That kind of behavior puts the entire economy in jeopardy, and Obama’s proposal to end such behavior is very urgently needed.

But, as vanden Huevel and I both note, Obama’s cap on bank size is a little too timid. Obama indicated that he wants to prevent big banks from getting bigger going forward. That misses the point.

Bustin’ up “too big to fail”

Financial giants like Citigroup and Bank of America are already much too big and pose an economic threat. That’s why we refer to them as “too big to fail,” and why the government had to devote over $17 trillion to saving them. Obama must cap bank size and break up our behemoth banks into companies that are small enough to fail without wreaking havoc on the economy. A good rule of thumb: 1% of gross domestic product.

Shouting down the bank lobbyists

In Mother Jones, David Corn emphasizes that Obama’s credentials as a serious reformer depend more on his policy maneuvering than on his rhetoric. While it has been extremely promising see Obama finally demanding something serious from the financial giants that taxpayers saved, he’ll have to shout down the bank lobbyists to secure meaningful economic—or political—gains. Corn writes:

If Obama aims to be widely regarded as a warrior for the middle class, he will have to take some mighty swings that cut through the clutter. Proclaiming ‘I am a fighter’ will not be enough. He will have to name his foes (financial institutions, insurance companies, Republicans, and perhaps recalcitrant Democrats) and truly exchange blows.

Obama’s stance on the CFPA alone should be enough to get the lobbyists into a lather, but he’ll have to keep up the fight on multiple fronts if he wants to protect our economy from the Wall Street recklessness that spurred millions of foreclosures and sent the unemployment rate soaring into double digits.

Last week, Obama finally told us he was willing to fight for economic change. Now it looks like he’s going to attack anyone who is looking for a job. Let’s hope he turns it around before it’s too late.

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: Murkowski Vs. the EPA

Posted Jan 22, 2010 @ 11:54 am by Sarah Laskow
Filed under: Uncategorized     Bookmark and Share

By Sarah Laskow, Media Consortium Blogger

On Thursday afternoon, Sen. Lisa Murkowski (R-AK) pulled out a rarely-used Congressional tool in an attempt to keep the Environmental Protection Agency (EPA) from regulating carbon and other greenhouse gasses. Sen. Murkowski offered a “resolution of disapproval” of the EPA’s impending action, which would limit companies’ carbon emissions.

The resolution would overturn the EPA’s finding that carbon dioxide is harmful to the public health. Three Democrats—Sen. Ben Nelson (D-NE), Sen. Blanche Lincoln (D-AR), and Sen. Mary Landrieu (D-LA)—joined Sen. Murkowski and 35 Republicans in sponsoring the resolution.

“Ms. Murkowski’s Mischief‘”

“This command and control approach is our worst option for reducing the gasses associated with climate change,” said Sen. Murkowski on the floor of the Senate yesterday. She called the EPA’s actions “backdoor climate regulations with no input from Congress” and said they would damage the country’s flailing economy.

The EPA first announced in April 2009 that carbon dioxide and other greenhouse gasses posed a threat to the public health. The agency formalized that finding last month, giving itself the power to regulate emissions of greenhouse gasses under the Clean Air Act. In March 2010, for instance, the agency is expected to announce carbon emissions rules for the auto industry that would match California’s higher standards. Sen. Murkowski’s resolution would derail that process.

Sen. Murkowski argued that she wants to give Congress room to come up with a legislative solution to climate change, but her critics see a more dangerous tilt to her resolution. “It’s a radical attempt by the legislative branch to interfere with executive branch scientists,” writes David Roberts at Grist.

Responding to “Ms. Murskowski’s mischief” on the Senate floor yesterday, Sen. Barbara Boxer (D-CA) called the resolution an “unprecedented effort to overturn scientific decision” and “a direct assault on the health of the American people.”

Resolution of disapproval

What is a “resolution of disapproval?” Grist’s Roberts called it “the nuclear option.”

“It would rescind the EPA’s endangerment finding entirely and thereby eliminate its authority over both mobile and stationary sources,” Roberts explains. “Furthermore, the administration would be prohibited from passing a regulation “substantially the same” as the one overruled, so the constraint on the EPA would effectively be permanent.”

This type of resolution was created by the Clinton-era Congressional Reform Act. The resolution has one big advantage: It cannot be filibustered. Passage requires only a majority in both houses of Congress. Members have tried using it in the past to delay the Dubai Ports World deal, derail FCC regulations on new media, and stop the flow of bailout funds.

Kate Sheppard at Mother Jones has been following Sen. Murkowski’s actions closely. She reports that “Senate supporters of climate action say Murkowski could obtain the votes of moderate Democrats from coal, oil, and manufacturing states. However, a resolution would still need to be approved by the House and signed by the president—both long shots, to put it mildly. ‘I think we’re a little worried about [Murkowski’s resolution] winning. I’m not sure we’re worried about it becoming law,’ a Senate Democratic staffer says.”

But Grist’s Roberts argues that passage in the Senate alone would be a problem. “Even if blocked by the House or vetoed by the president, such a public, bipartisan slap at the administration would be highly embarrassing and demoralizing,” Roberts writes. “It would mean at least ten conservative Democrats washing their hands of the administration’s initiative.”

Climate change and Congress

Sen. Murkowski insists that she’s still ready to work with her colleagues on climate change and that it’s better to approach the problem of climate change via legislation, not regulation.

But no one in Washington believes that climate change legislation is going to pass—even come to the Senate floor—any time soon. The issue was already in line behind health care, and the election of Republican candidate Scott Brown to Sen. Ted Kennedy’s Massachusetts seat this week means that none of the bills that the Senate is working on are likely to come to a vote this year.

“There was hope that the [climate] bill would come to the floor in the spring,” writes Steve Benen at Washington Monthly. “Regrettably, a narrow majority of Massachusetts voters have made it significantly more likely that Congress won’t address the problem at all. Proponents focused on solutions have vowed to “persist,” but Massachusetts has made a difficult situation considerably worse.”

The role of special interests

Sen. Murkowski has come under criticism for allowing Bush-era EPA administrators, now lobbyists representing clients on climate change issues, to help her craft an earlier amendment cracking down on the EPA. Yesterday, she said that those criticisms are “categorically false.”

But as JP Leous reports at Care2, Sen. Murkowski does receive substantial backing from energy industries that oppose climate change legislation and regulation.

“According to OpenSecrets.org Sen. Murkowski has received hundreds of thousands of dollars from polluting companies, and some of her biggest campaign contributors in recent years include firms with fossil-fueled motives like Exxon Mobil Corp,” Leous writes “Add those dots into the mix and a different picture emerges — and it starts to look like a person who is poised to introduce legislation next week attacking the Clean Air Act.”

On the Senate floor yesterday, Sen. Boxer charged, “Why would the Senate get in the business of repealing science? Because that’s what the special interests want to have happen now. Because they’re desperate.”

The Democratic Senators who co-sponsored the resolution also come from energy producing states where companies object to the new EPA regulations.

If at first you don’t succeed…

If Sen. Murkowski’s resolution does pass the Senate, there’s little chance it will pass the House as well. But this isn’t the only option that regulation opponents are looking at to fight the EPA. The Chamber of Commerce and other groups are planning to challenge the regulatory action in court, as Mother Jones’ Sheppard reports.

Last week, these opponents met to discuss their strategy. What’s interesting, Sheppard says, is that “the group was apparently divided on the best course of action. The Hill observes that “two camps have emerged.” One wants to challenge whatever rules the EPA issues, while another wants to question the science of global warming itself.”

We’re back to that old saw? With legislation off the table, the fight over climate change, for now, is in the regulatory arena.

This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Diaspora: Does Coakley’s Loss Spell Trouble for Immigration Reform?

Posted Jan 21, 2010 @ 12:51 pm by Nezua
Filed under: Immigration     Bookmark and Share

By Nezua, Media Consortium Blogger

Professional pundits and Democratic politicians are in a frenzy over what Martha Coakley’s senate seat loss to Republican Scott Brown might mean for American politics.

Immigration reform in jeopardy

As Harold Meyerson of the American Prospect reports, the loss of one seat probably won’t derail heath care reform, but it does make the chances of passing immigration reform slimmer. Meyerson writes that immigration reform is “necessary to restore our economic vitality and political equality,” and actually passing reform would benefit the Democratic faction. Unfortunately, that means that immigration reform will require 60 votes in order to pass the senate.

The Texas Observer’s Melissa del Bosque writes about the slim chances of immigration reform passing in 2010. According to Rep. Henry Cuellar (D-TX), a member of the Congressional Hispanic Caucus, a 2011 target date is “probably more realistic.” del Bosque refuses to lose hope, reminding us that Rep. Luis Gutierrez (D-IL) has assured the public that “the Obama administration promised to bring up the issue in 2010.” Of course, bringing up an issue and actually passing reform are two very different animals.

Holding on to hope for 2010

In her daily roundup of Spanish-language media, Erin Rosa of Campus Progress also urges a positive outlook “despite the reorganization of the Senate.” Rosa relays that Rep. Xavier Becerra (D-CA) assured the media during a telephone conference that President Obama “remembers his promise well.” While “most latinos” interviewed are impatient, they hold on to hope that 2010 is the year for reform.

TPS for Haitians

Haitian undocumented that are currently within U.S. borders will be given Temporary Protected Status (TPS), as Julianne Hing reports for RaceWire. The decision only applies to Haitian immigrants in the U.S. prior to January 12, 2010. Hing observes that it is unfortunate that it took “a disaster of this magnitude” to inspire the White House to offer TPS to Haitian immigrants, though it is “a great relief.”

What will the recently granted TPS status mean for Haitians that are already in deportation proceedings? Such is the case of Haitian immigrant Jean Montrevil, as Aarti Shahani reports for New America Media. Montrevil came to the U.S. on a green card in 1986 to “make it big,” but in his efforts, “got stupid,” and caught up in selling drugs from his taxi cab. That was 20 years ago, and Montrevil has served 11 years in prison to pay for his errors. Montrevil is now a father of four and a community leader. The Department of Homeland Security considers his prison time proper cause to deport him. Many others feel he has done his time, and is a positively contributing member of our society. Democracy Now! also covered Montrevil’s story recently, as noted in the Jan. 7 Diaspora.

Invisible to the first world

Why are countries like Haiti mostly invisible to first world nations like the U.S. until catastrophe strikes? Leonardo Padura asks, before the earthquake, “Who talked about Haiti?” for IPS News. Haiti desperately needs the emergency aid so generously given today, but the country has needed help for a long time. “Let us hope that tomorrow, when the tragedy no longer dominates the headlines, and the dead are buried,” writes Padura, “we will not forget Haiti exists….”

Disappointingly, “U.S. corporations, private mercenaries, Washington and the International Monetary Fund” are remembering Haiti in a rather cruel and opportunist fashion, as Benjamin Dangl reports for AlterNet. At a time of crisis and great human need, Washington D.C. is “promoting unpopular economic policies and extending military and economic control over the Haitian people.” This is disturbing, as a long history of economic exploitation helped render the country vulnerable to disaster. The recent earthquake has claimed roughly 200,000 lives so far.

Haiti in context

While borders and border cities bear the brunt of blame when migrants move, the cure won’t be found in bigger bails of barbed wire, or harsh enforcement tactics that deny escape from economic desperation or dangerous conditions.

Jocelyn Barnes, reporting for The Nation, provides a much needed contextualization of Haiti. There are many related factors that weakened and harmed Haiti’s ability to thrive, not the least of which have been storms and earthquakes. But the privatization of Haiti’s infrastructure—which was “championed” by current envoy to Haiti in charge of “leading the quake assistance brigade” former president Bill Clinton—have definitely been instrumental in the country’s fate.

Marching against Arpaio

Finally, given the recent holiday celebrating the life and efforts of civil rights hero Martin Luther King, Jr., we would be remiss in overlooking the January 16 march in Arizona protesting Maricopa County Sheriff Joe Arpaio. The event was organized by Salvador Reza, a respected Mexican American activist and community organizer in Arizona. Musician Linda Ronstadt, Co-Founder of United Farm Workers Dolores Huerta, and approximately 5,000 people marched from a park to Tent City, the name for the sheriff’s makeshift detention center.

Arpaio is reviled by many in the Latino and undocumented community for his methods of racial profiling and humiliating treatment of detainees. Recently, Arpaio was compared to Bull Connor by an ad published in in the Arizona Republic by 60 black leaders and the Center for New Community.

King’s vision was large and led to new horizons; it cannot possibly be contained to one era, or one day on a calendar. The struggle continues, every day, everywhere.

This post features links to the best independent, progressive reporting about immigration by members of The Media Consortium. It is free to reprint. Visit the Diaspora for a complete list of articles on immigration issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, and health care issues, check out The Audit, The Mulch, and The Pulse . This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Pulse: What Does Coakley’s Defeat Mean for Health Care Reform?

Posted Jan 20, 2010 @ 12:49 pm by Lindsay Beyerstein
Filed under: Health Care     Bookmark and Share

By Lindsay Beyerstein, Media Consortium Blogger

Last night, Republican Scott Brown defeated Democrat Martha Coakley in the special election to fill Teddy Kennedy’s senate seat in Massachusetts. Coakley’s loss puts health care reform in jeopardy.

With Coakley’s defeat, the Democrats lose their filibuster-proof 60-seat majority in the Senate. However, as Paul Waldman explains in The American Prospect, Coakley’s loss is not the end for health care reform.

Remember, the Senate already passed its health care reform bill in December. Now, the House has to pass its version of the bill. The original plan was for House and Senate leaders to blend the two bills together in conference to create a final piece of legislation (AKA a conference report) that both houses would vote on. Once the Democrats are down to 59 votes, the Republicans can filibuster the conference report and kill health care reform.

But if the House passes the same bill the Senate just passed, there’s no need to reconcile the two bills. This so-called “ping pong” approach may be the best way to salvage health care reform. Some of the flaws in the Senate bill could still be fixed later through budget reconciliation. It would be an uphill battle, but nothing compared to starting health care reform from scratch.

The second option would be to get the bill done before Scott Brown is sworn in. According to Waldman, there could be a vote within 10 days. The House and Senate have already drafted some compromise legislation, which Waldman thinks is superior to the straight Senate bill. If that language were sent to the Congressional Budget Office immediately, the Senate could vote before Brown is sworn in.

Sen. Majority Leader Harry Reid (D-NV) said in a statement last night that Brown won’t be sworn in until the election results are certified, a process that could take two weeks. Historically, the winners of special Senate elections have taken over from their interim predecessors within a couple of days. If the Republicans were in this position, they’d use every procedural means at their disposal to drag out the process. The question is whether the Democrats have the fortitude to make the system work for them.

Remember how the Republicans did everything in their power to hold up the Senate health care vote, including forcing the clerk to read the 767-page bill aloud? They were trying to delay the vote until after the Massachusetts special election. If it’s okay for the GOP to stall, the Democrats should be allowed to drag their feet on swearing in Brown.

Also, remember how the Republicans fought to keep Al Franken from being seated after he defeated Norm Coleman?  For his part, Franken says he’s determined to pass health care reform one way or another, according to Rachel Slajda of Talking Points Memo.

Incongruously, some Democrats are arguing that rushing to a vote would be a violation of some vague democratic principle. Sen. Jim Webb (D-VA) wasted no time in proclaiming that there should be no vote before Brown was sworn in. Rep. Barney Frank (D-MA), of all people, averred last night that the Democrats should respect the democratic process and start acting like they have 59 votes while they still have 60.

All this talk of  “respecting the process” is hand waving disguised as civics. According to the process, Scott Brown isn’t the senator from Massachusetts yet. According to the process, you have the votes until you don’t.

Talk about moving the goalposts. It’s bad enough that we need 60 votes to pass a bill on any given day. Now, they’d have us believe that we also need 60 votes next week. Webb and Frank are arguing that Brown’s victory obliges Democrats to behave as if Brown were already the Senator from Massachusetts. Of course, if Webb won’t play ball, it’s a moot point. The whole fast-track strategy is predicated on 60 votes. Steve Benen of the Washington Monthly thinks that Webb effectively took the fast-track option off the table with his strongly worded statement.

Katrina vanden Huevel of The Nation argues that this historic upset should be a wake up call to President Barack Obama to embrace populism with renewed fervor. I would add that Obama was elected on a platform of hope and change. There is no better way to fulfill a promise of change than to reshape the nation’s health care system and provide insurance for millions of Americans.

Ping pong, anyone?

This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.