Posts tagged with 'american prospect'
Weekly Audit: Don’t Let Citizens United Wreck Our Economy
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By Zach Carter, Media Consortium Blogger
In 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. (more…)
Weekly Diaspora: Does Coakley’s Loss Spell Trouble for Immigration Reform?
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. (more…)
Weekly Pulse: Angry Mobs Demand Status Quo
by Lindsay Beyerstein, TMC MediaWire Blogger
By now it’s clear that the Senate Finance Committe won’t cough up a heathcare bill before the summer recess. As Nick Bauman points out in Mother Jones, the delay is sure to sap momentum for reform. Worse, the break will give healthcare reform’s opponents more time to spread fear, uncertainty, and doubt. Disinformation is already running wild.
Dave Weigel of the Washington Independent points to July 31 memo from House Minority Leader John Boehner (R-Ohio) entitled “A Very Hot Summer,” in which he announces that the GOP has launched an “entrepreneurial insurgency” against healthcare reform.
And now the National Republican Congressional Committee (NRCC) is openly celebrating the angry mobs of anti-reform protesters that are disrupting town hall meetings and shouting down pro-reform Democrats, as Eric Kleefeld of TPM DC notes. “Roaring Chants Interrupt Healthcare PR Campaign As Dems Lose Their Cool and Town Halls Turn Into ‘Town Hells’,” gloats one NRCC email message to reporters. This campaign’s official logo depicts a donkey being roasted alive (image at right) .
If the reformers used the NRCC’s playbook, reporters would be deluged with retaliatory tweets claiming that teabaggers are killing babies and raping old women, but facts are stubborn things. As of press time, the Pulse is not aware of any ritual sacrifices by teabaggers at townhall meetings.
Steve Benen of the Washington Monthly warns that the GOP’s strategy to egg on the wingnuts could have unintended consequences:
It’s probably the one angle the corporate interests and their lobbyists haven’t considered: the unintended consequences of rallying confused right-wing activists to shout down policymakers who’ll improve their health care coverage. Once you wind up the fanatics and point them in the direction of a town-hall meeting, you never really know what they’re going to say, do, wear, or hold. In at least one case at the Doggett event, there really was a sign with Nazi “SS” lettering.
Top Obama adviser David Axelrod denounced groups like Conservatives for Patients Rights for stoking the protesters. Axelrod pledged to aggressively combat misinformation about the Obama administration’s reform plan, as Rachel Slajda of TPM reports. Is it a coincidence that Axelrod was abruptly issued a Secret Service detail this week without explanation?
In the American Prospect, Paul Waldman describes how Republican members of Congress are promulgating the urban legend that the healthcare bill includes mandatory euthanasia:
In some tellings, government bureaucrats will visit the elderly to force them to choose their manner of death. In another, their doctors will be required to “tell them how to end their life sooner” (this one is being popularized by Betsy McCaughey, as despicable a merchant of lies as has ever slithered through our public debate). One GOP member of Congress after another has simply dispensed with all the complexity and said that the Democratic health plan will cause seniors to be “put to death by their government” or some variation thereof.
The rumor grew out of a provision to reimburse doctors for end-of-life care, including discussions of living wills, as Waldman explains.
Speaking of misinformation, Rep. Kent Sorenson (R-Iowa) is tweeting nonsense about a shadowy healthcare commissioner who decide’s everything for you, as Jason Hancock of the Iowa Independent reports. “Page 42 healthcare bill ‘Health Choices Commissioner’ will decide health benefits for you. You will have NO choice,” Sorenson breathlessly informed his followers. In fact, according to an analysis by the Pullitzer Prize-winning website PoliFact, the healthcare commissioner would regulate insurance companies to make sure they don’t exclude people for preexisting conditions.
At the rate misinformation is mutating, perhaps Republicans will have convinced themselves that the bill will create Health Care Commissar who will involuntarily euthanize you and make your grandmother have an abortion by tomorrow morning.
Congress will return from summer break on September 4. Expect heated rhetoric and increasingly frenzied political theater in the weeks ahead.
This post features links to the best independent, progressive reporting about healthcare and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
Weekly Audit: Power to the People’s Republic
by Sara Luckow, TMC MediaWire Blogger
In the past few years, the economic relationship between the United States and China has changed dramatically. As Tim Fernholz writes in the American Prospect: “Chastened U.S. officials who once lectured their counterparts in [China] on financial liberalization are now humbled in front of their largest creditor, reduced to offering promises of fiscal responsibility.” It’s a strange state of affairs. Fernholz rightly argues that:
“The common interest of the peoples, rather than the economic elite, ought to be the driving motivation behind the two countries’ interactions. There is no doubt that economic openness has brought wealth to both countries, and the Obama administration is happy to laud the Chinese for bringing millions out of poverty. But in a relationship between “capitalism with American characteristics” and “socialism with Chinese characteristics,” sometimes the people—whether they be workers losing jobs in the United States or the millions of Chinese living without political freedom or prosperity—have interests other than the elites. Today, we’re in an economic crisis, and pragmatism overrides all else. But as recovery continues, the U.S. will require more thought on the strategic track, and perhaps in a few years our discussions with China, as they should be with all our friends, will be more frank.”
But our current economic relationship with China pre-dates President Obama’s “talk first” style of diplomacy. As Robert Scheer of The Nation writes: “Don’t blame any of this on peacenik liberals. The new conciliatory—nay, deferential—tone toward China precedes the Obama administration, having begun in bilateral talks during the last years of the Bush administration as the U.S. economy began its ignominious downfall. It was George W. Bush’s treasury secretary, Henry Paulson, who set the course when the former Goldman Sachs chairman realized how dependent were his Wall Street buddies on Chinese goodwill.”
Strange relations with China aside, things aren’t going so well at home. Rick Wolff, an economist from the New School, says the stimulus package has big problems in a discussion with The Real News. Wolff also notes that we shouldn’t take Wall Street chatter about an economic upswing too seriously. “I think the first thing to remember is the people who are celebrating where we are now are the same people who could not imagine, did not imagine, did not foresee the problem we had last year,” Wolff says.
But what’s going on with our favorite bailout recipients? Talking Points Memo takes on the case of former Federal Pension Guarantor Charles Millard, who exploited his personal ties with employees at BlackRock Capital and Goldman Sachs while choosing firms to manage the Pension Benefit Guaranty Corporation. At this point, both firms “may have run afoul of federal contracting rules in how they courted Millard.”
Goldman Sachs and BlackRock are also on the lookout for the next big economic bubble. Salon reveals that both firms are diversifying their portfolios to include agriculture, in addition to government contracts. “Food is becoming the new oil,” especially since the world’s population is expected to crest nine billion by 2050. And a lot of land is necessary to grow enough food for nine billion people. Phillipe Heilberg, founder of American investment firm Jarch Capital, is hedging his bets on farmland in distressed countries. “Instead of buying stocks, the former banker is now speculating on the political future of South Sudan, which he insists will be an independent country in 10 years, at which point land will be far more expensive than it is today.”
It’s abundantly clear that we can’t rely on the economic elite to represent the people’s interests. Tomorrow’s economic structure must be drastically different if the United States is going to thrive. Put simply, we’re going to have to seriously reevaluate our economic priorities and decide who calls the shots. Here’s hoping that everyday people have a say.
This post features links to the best independent, progressive reporting about the economy and is free to reprint. Visit StimulusPlan.NewsLadder.net and Economy.NewsLadder.net for complete lists of articles on the economy, or follow us on Twitter. And for the best progressive reporting on critical health and immigration issues, check out Healthcare.NewsLadder.net and Immigration.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.
Weekly Immigration Wire: Building Up to Change
by Nezua, TMC MediaWire Blogger
As the U.S. moves closer and closer to enacting immigration reform, the situation on the ground is evolving as well. Nothing is static for an issue that touches so many people across so many communities. This week’s wire follows up on trends observed last week: holding mainstream media accountable, enforcement tactics, and immigration’s positive effect on the economy.
But if you’d first like to get up to speed on immigration reform fundamentals, stop over at Feministing’s interview with Christine Neumann-Ortiz. (And definitely don’t miss Feministing’s call to action to stop the infamous Sheriff Joe Arpaio.)
Last week, the Wire highlighted the importance of holding mainstream media accountable—especially when it comes to giving proper context to quoted sources. This week, Texas Observer’s Melissa del Bosque writes that “[t]he truth differs wildly from the perception.” when it comes to the actual political situation in Mexico and the image cultivated by mainstream media. While some outlets continue to develop an image Mexico as lawless and volatile, the actual scenario is not as dramatic.
Following up on enforcement tactics, Marcelo Balivé, writing for New America Media, explores the “backlash against immigrants” that “continues to rage countrywide.” According to Balivé, anti-immigrant sentiment is bleeding over into American perceptions about Mexican culture, “casting a pall on all Hispanic immigrants, whether they entered the country illegally or not.”
On a more positive note, Department of Homeland Security (DHS) head Janet Napolitano’s recent statements that ICE will henceforth target employers rather than workers is a move in the right direction, though she gives no indication of how that might manifest on a practical level. Napolitano also admits that there will be “no halt to arrests of undocumented workers.”
This is unfortunate. The effects of ICE raids, and the ongoing hunt for “illegals in our midst” is hurting most Latinos in the U.S., even citizens. Even the so-called “Sanctuary” cities, which refuse to enlist local law enforcement to federal duties like immigration control, are no longer offer a feeling of safety. San Francisco, much like Postville, Iowa, is now feeling the devastating effects of the ICE raids. I’m not sure how the Democratic party intends to square its support for community-shattering raids with previous promises to a large part of their constituency.
In the American Prospect, Ann Friedman writes that nearly one year after the raid in Postville, “The lingering effects of the raid make depressingly clear how misleading the “immigrants take from our communities” narrative really is.” Friedman asks that we consider what a community loses when we act as if a huge part of that same community is “illegal.”
Following up on last weeks coverage of immigration as an economic issue, Pramila Jayapal and Renee Radcliff Sinclair argue that Immigrants Keep Washington’s Economy Strong for the American Forum:
The Office of Financial Management estimated that in 2007, Washington households with at least one foreign-born member contributed $1.48 billion in tax revenue, or 13 percent of the state’s total tax revenue. Even low-income immigrant households earning less than $20,000 a year contributed a total of $50 million in tax revenue.
And in other immigration news, Wiretap’s Naima Coster writes of an ethical conflict of interest when “anti-immigrant policy and the capitalist ambitions of pharmaceutical giant Merck” are joined. Is it right to federally mandate all women immigrants to receive the Gardasil vaccine, which has claimed approximately 20 lives and produced “thousands of cases of adverse effects”?
Women have good cause to be concerned with the immigration issue “because of the displacement and separation of families—and the inherent link … between women and family life,” writes Elisabeth Garber-Paul for RH Reality Check. It’s a point also implicit in Made in LA, an Emmy-winning documentary that follows the lives of three Latina immigrants fighting for labor protections and the right to pursue freedom, happiness and a fair living.
This post features links to the best independent, progressive reporting about immigration. Visit Immigration.NewsLadder.net for a complete list of articles on immigration, or follow us on Twitter. And for the best progressive reporting on critical economy and health issues, check out Economy.NewsLadder.net and Healthcare.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.
Weekly Immigration Wire: Legalize the Undocumented, Help Fix the Economy
by Nezua, TMC MediaWire Blogger
The dialogue on immigration has, historically, been contentious and cyclical. There are times when hysteria peaks, and rational thought struggles to enter the national dialogue. There are also moments of truth. This week, independent media debunked many myths about the undocumented and made the case for the positive impact of immigrants in the US, including the positive effect of legalizing the undocumented on the economy and how citizens are holding elected representatives accountable for votes against pro-immigrant measures.
Wendy Norris, writing for the Colorado Independent, held the New York Times to task for using questionable sources in an article about President Obama’s push for immigration reform. Norris exposes the background of quoted anti-immigration groups like NumbersUSA, CIS, and FAIR, who have ties to white supremacy groups and eugenics promoters and calls the New York Times out for quoting organizations “repeatedly discredited as hate groups.” When hate groups are quoted as legitimate sources, society suffers from the misrepresentation.
Also in New America Media, Jacqueline Esposito and Jumana Musa explore the kinds of “enforcement” that groups like NumbersUSA and FAIR claim is the most important part of Immigration Reform. Esposito and Musa cite the case of Guido Newbrough, a detainee who made multiple requests for medical attention; there was a treatable bacterial infection in his heart. Newbrough was locked in an isolation cell and died of the ailment.
“As the country moves forward on comprehensive immigration reform,” they write, “We must uphold American values by ensuring that all people, no matter where they come from, are afforded fundamental rights, including the right to a fair day in court before being deprived of liberty and the right to be free from inhumane conditions of confinement. As a nation, we cannot stand for anything less.”
The San Francisco Democratic County Central Committee (DCCC) would no doubt agree with that sentiment, as Beatriz Herrera reports for Wiretap. Apparently, the DCCC voted 20-1 against San Francisco Mayor Gavin Newsom to preserve Sanctuary ordinances for juvenile offenders. These ordinances ensure that offenders have a chance to prove their innocence instead of facing immediate deportation.
During the 2008 election season, voices calling for reason in the immigration debate were often drowned out by the near-hysteria that certain elements of the Right called forth. Another encouraging sign that we are, perhaps, at a new juncture: Today, even democratic state senators are being held accountable. Colorado Sen. Morgan Carroll (D-Aurora) was recently forced to defend her vote against SB 170, the tuition bill was one that would provide in-state tuition equity for undocumented Colorado high school graduates, on the air.
According to the Colorado Independent, Sen. Morgan appeared on progressive talk radio host Mario Solis-Marich’s show on April 10—after “a week of being beat up in the press and on the blogs” for her opposition to the bill.
In Public News Service, Doug Ramsey has news about a report which focuses on the benefits of legalizing currently undocumented workers. Compiled by the nonpartisan Immigration Policy Center, the report breaks down how legalizing the undocumented community would increase the amount of income that the immigrant community brings into the economy. Rather than immigrants costing us, “legalization would boost tax collections at all levels of government by $66 billion over the next few years.”
Public News Service also explores the economic benefits to bringing the underground economy above ground. According to David Kallick, an economist with the Fiscal Institute, billions of dollars are simply “lining the pockets of employers who hire folks in the underground economy and avoid contributing to payroll and other taxes.”
And OneWorld US reports that Hispanic rights advocates are eager to hear the president’s plan for immigration reform and note that very reform is key to economic recovery. Janet Murguía, President and CEO of the largest national Hispanic civil rights and advocacy organization in the US notes that “the path to a strong economic recovery includes strategies that lift wages, increase revenue, and create a level playing field—and immigration is a crucial element of that equation.”
Even the American Prospect’s Ezra Klein is writing about immigration in a more proactive light. Just last week, Klein wrote Why Immigration Reform Won’t Happen. He is now making The Political Case for Immigration Reform.
So maybe we’re figuring it out as we go. The costs of letting parts of our country fail and fall away are more than economic, they are moral and profound. We have time to act, but opposition voices are gathering in number. There are many anti-immigrant myths, and many oppose a truly progressive stance on immigration. But we have the will for the struggle and the payoff will come not only in a healthier economy, but in a sounder national soul.
Are you ready? Let’s go.
This post features links to the best independent, progressive reporting about immigration. Visit Immigration.NewsLadder.net for a complete list of articles on immigration, or follow us on Twitter. And for the best progressive reporting on critical economy and health issues, check out Economy.NewsLadder.net and Healthcare.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.
Weekly Immigration Wire: Binghamton Shootings Impact all Sides of Debate
by Nezua, TMC MediaWire Blogger
Last Friday, 13 people were killed at the American Civic Association in Binghamton, New York. The event shocked the nation and was “the worst mass shooting in the United States since the 2007 massacre at the Virginia Tech college,” as New America Media reports. Because the violence erupted at an immigrant service center, the immigrant community has been especially affected, and immigration opponents are predictably using the tragedy to justify, or at least voice, their vitriol toward the undocumented population.
The impact of the Binghamton shootings on the U.S. immigrant community, already aggravated by ICE raids that funnel them into an abusive system, evokes multiple concerns. One is of further violence. But a grim possibility has also emerged: Immigrant activists who want to become integrated members of U.S. society might stop patronizing the places that can help them do just that, as Public News Service reports. Facilities like the American Civic Association provide many services for the immigrant community, one of which is improving their English. It’s hard enough for those with a limited grasp on a new language to navigate life in a new country. If immigrants fear the places that help them learn, it only makes their lives harder.
When issues like immigration become politicized, nothing is off-limits. Even the national census is “morphing from sociological project into a political one,” according to RaceWire’s Michelle Chen. Conservatives fear losing votes and political power to regions where “illegals” are counted as a part of the census (As if they didn’t lose the Latino vote all on their own in 2008). Civil rights and immigrant advocates fear a worse miscount this year of the Latino population than 2000’s 3 per cent under count.
Erin Rosa reports on possible census-count solutions for the Colorado Independent. Rosa writes of “Ya es hora! Hagase contar!” (It’s time! Make yourself count!), an “unprecedented media campaign” that encourages Latinos to participate in the census.
The Colorado Independent has a few interesting articles on immigration this week. In Bush Admin’s Environment Waivers Remain Intact at Border, a contrast is drawn between President Obama’s recent speech in Germany about walls “between races and tribes” being “the walls we must tear down” with the controversial construction of a border wall in southern stated. Construction proceeds, despite President Obama’s professed philosophy. And in Senate kills immigrant in-state tuition bill, Wendy Norris writes about Colorado’s legislative “companion to the federal DREAM Act” that would have provided college tuition equity to undocumented Colorado high school graduates was lost on a 18-16 vote.” One Democrat explained her vote against the bill as a practical one: Because children of immigrants are at risk for deportation, the bill is “at odds” with federal law.
This type of legislative deadlock doesn’t escape Ezra Klein of the American Prospect, who comments on Senator John Mccain’s “testy” rejoinder to a number of Hispanic business leaders who questioned when reform would come. “Where the reformers will turn,” Klein asks. In 1986, a particular alignment of politicians enabled the last major reforms in immigration law to pass—a configuration of forces not currently in place.
So, who will reform immigration? It’s an important question. The terrain is dangerous because there is no clear consensus or policy to rely on. In the legal gaps that this absence creates, questionable legislative bridges spring up, like agreement 287(g), which enlists local law in enforcing federal immigration violations. The most famous symbol of 287(g) is, of course, Sheriff Arpaio, who has left an entire community “terrified and afraid to call the police.”
“We’re dealing with a climate of hate, people don’t understand they’re being moved by people who hate,” says Phoenix attorney Danny Ortega. “Then you’ve got the Joe Arpaio’s of the world making it politically popular to hate.”
The power that can be leveraged by law and political agenda is vast and must be closely monitored. Immigrants, especially women of these communities, have long been a target of such iniquities. National Radio Project reports on yet another instance in a long line of oppressive reproductive health policies that target women of color and the immigrant community.
Going back to RaceWire, Michelle Chen follows up on President Obama’s Aunt Zeituni’s fight for citizenship, and how anti-immigrant groups have fixed upon her case as a high-profile example of how immigrants “game the system.” The article outlines precisely how ludicrous this stance is.
Finally, make sure to check out In These Times‘ thoughtful review of the new “immigration/baseball drama” Sugar, by Brooklyn-based filmmakers Ryan Fleck and Anna Boden. Reviewer Brandon Harris writes that “Sugar’s experiences reveal the labors of all immigrants who struggle to adjust to the harsh realities of American life on the margins.”
That phrase could apply to many today. And to many who paved the way for us today. It is a story we must not forget.
This post features links to the best independent, progressive reporting about immigration. Visit Immigration.NewsLadder.net for a complete list of articles on immigration, or follow us on Twitter. And for the best progressive reporting on critical economy and health issues, check out Economy.NewsLadder.net and Healthcare.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.
Weekly Audit: Welfare, Work and the Bailout Bonanza
The U.S. economy lost nearly 600,000 jobs in January, bringing total losses in the past three months over 1.5 million—more than the entire population of Philadelphia. If there ever was a good time to mend the tattered U.S. social safety net, it’s now. While unemployment benefits and food stamps remain relatively uncontroversial, basic welfare continues to be neglected by the general media and vilified by the right. And as of this moment, a responsible welfare program is needed more than at any point since the 1930s.
Seth Wessler has a great blog on RaceWire about retooling welfare so that it actually provides relief to people in need. The welfare reform Congress passed in 1996 tied benefits to employment, thereby excluding those who most need help, especially in an economy like this. The law’s popularity was fueled by false stereotypes about the disadvantaged.
“The punitive rules established after twenty years of racially coded frenzy to ‘end welfare as we know it’ have left Americans with no safety net during this deepening economic crisis,” Wessler writes, arguing that it is high time for this hateful chapter of American history to be over.
Pointless haggling over the economic stimulus legislation also needs to stop now. In a post for The Nation, John Nichols details the damage Senate Republicans have inflicted on the economic recovery package, and by extension, the economy itself. If the current Senate bill becomes law, Nichols notes, states will get less money to keep public employees on the payrolls, education programs will receive less funding, efforts to create jobs will be less effective and public health initiatives will be stymied. Even conservative French President Nicolas Sarkozy thinks that the changes the Senate has made to the bill are a bad idea.
And what do we get for sacrificing all of these public investments? Tax cuts. As Robert Oak notes in the Economic Populist: “We need income, people!” The government can try to create incentives for people to buy cars and houses and stocks, but without a job, a lower price tag means nothing. If tax cuts are to make any impact, they have to be accompanied by major job creation. And job creation programs mean government spending.
Has everybody forgotten that Democrats just won back-to-back elections? Trickle-down economic policies were rejected by voters across the nation last November. Republicans lost seats in Idaho and Virginia, of all places! When a party suffers such complete losses, it means that voters don’t put much stock in its ideological toolkit—and they probably don’t want the winning party to do so either.
“There’s been a sort of embarrassment at the prospect of aggressively using the Democratic mandate, and there shouldn’t be,” Ezra Klein writes for The American Prospect.
Of course, the U.S. government plans to do more than provide more tax cuts for rich people. It’s also going to bail out the shareholders and executives of huge multinational corporations that wounded the economy in the first place, creating a new welfare program for the wealthy. We will need some kind of financial sector to support economic recovery, and freshly sworn-in Treasury Secretary Timothy Geithner could take one of two reasonable routes to economic salvation: The Treasury could nationalize the major “too-big-to-fail” banks outright, or simply let them die and have the Federal Reserve fill the credit-shaped hole in the economy. Unfortunately, the Obama team appears ready to pump money into the banks and shield shareholders from losses that stem from some of the worst management decisions in business history.
If Geithner and Co. orchestrate another bank bailout, however, we lose an opportunity to rebuild the U.S. economy that actually addresses the needs of individuals in an environmentally sustainable way. As David Korten argues in Yes! Magazine, the Wall Street-driven economy has created huge sums of money, but done almost nothing to meet any serious social challenge. To build a better economy, we need to transcend Wall Street. “Trying to solve the crisis with the same tools that caused it is the definition of insanity,” Korten writes.
Beyond Wall Street, the Obama administration has inherited a decimated manufacturing sector. It’s currently propped up by a deeply flawed loan the Treasury Department extended to General Motors and Chrysler in December. Below is a segment from a four-part series on the auto bailout from The Real News. In it, Host Paul Jay notes that unions are being asked to take pay cuts as part of the effort to retool the Detroit car makers, even as decades of dreadful management decisions and poor environmental policy are being shut out of the public discussion.
It’s important to note that autoworkers’ union could be helping cement the false perception that workers are responsible for Detroit’s problems by agreeing to accept pay cuts as part of the bailout plan. Acquiescing to the demands of incompetent executives and opportunistic lawmakers also sets a terrible precedent for other stand-offs between CEOs and their employees. The millionaire managers who created the mess should be held accountable for the clean-up, not the factory workers who had the audacity to ask for health insurance.
Something is terribly amiss when the most neglected members of society can’t ask for help paying the bills, while even those protected by union contracts can’t expect to have their health care costs covered. The U.S. economy will be losing at least half a million jobs for the foreseeable future. We cannot abide by a system that punishes those who are already being hit hardest by the economic downturn.
This post features links to the best independent, progressive reporting about the economy. Visit StimulusPlan.NewsLadder.net and Economy.NewsLadder.net for complete lists of articles on the economy, or follow us on Twitter. And for the best progressive reporting on critical health and immigration issues, check out Healthcare.NewsLadder.net and Immigration.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.
Weekly Audit: Curbing Decline in 2009
In 2008, we witnessed the first serious fallout from deep structural flaws in the relationship between the nation’s public and private sectors, a relationship which fell short in every conceivable area from Wall Street regulation to the basic social safety net. The biggest economic stories of 2009 will be about how President-elect Barack Obama’s administration repairs—or fails to repair—that connection.
The first step in rebuilding a government that actually responds to problems before they reach the bailout stage will be Obama’s highly anticipated economic recovery package. As Dean Baker notes for The Huffington Post, the failure to date of Congress to pass meaningful stimulus legislation has been beyond negligent. Several Congressional leaders are cautioning that a bill will not be ready until February, but with more than two weeks to go before Obama’s inauguration, Congress has both the time and the public support necessary to pass a major bill before Obama takes up a chair in the Oval Office, as anyone who remembers the speed of Congressional action moved on the Wall Street bailout can attest.
The content of the legislation will reveal a great deal about Obama’s priorities. No president since Franklin Delano Roosevelt has entered office with an economic mandate as clear as that Obama enjoys, but one early warning sign for progressives is this week’s news that Obama plans to devote as much as 40% of the bill to tax cuts, a number that could go higher in legislative haggling with Congressional Republicans.
In a blog post over at The Washington Monthly, Hilzoy highlights the well-established economic fact that tax cuts are the least efficient method for boosting economic activity. Remember the February 2008 economic stimulus bill? Fat lot of good those $600 tax rebates did.
Public investment in areas like health care, green energy and research into sustainable manufacturing also leaves a stronger economy in its wake, and spending on basic infrastructure projects—roads, bridges, etc.—has been sorely neglected for the past eight years.
What’s more, as Ezra Klein notes for The American Prospect, the U.S. government seems to be in perpetual tax cutting mode, whether economic times are good or bad. While cutting the right taxes amid a severe recession can be justified, President George W. Bush’s decision to take a chainsaw to the IRS code during an economic boom cannot become a permanent facet of U.S. policy.
Imperative services provided by state governments are currently in severe jeopardy amid tax shortfalls prompted by lower housing values. The Public News Service discusses budget problems in Michigan and Missouri in pieces by Tony Bruscato and Laura Thornquist. Michigan faces cutbacks in health care for the poor and college tuition assistance programs, while Missouri needs to fill a $900 million hole by 2010.
State and local governments are likely to be $200 billion underwater next year, according to a piece by Robert Kuttner appearing in Chelsea Green. Even if Obama does not want to tackle major issues like universal health care in his first 100 days in office, he could fund community health clinics and make sure police officers, firefighters and teachers do not lose their jobs.
It has been easy to forget amid the mortgage market news of 2008 that other aspects of the economy have been under intense strain. In a frightening interview with The Real News, Leo Panitch details how a drop-off in working-class wages, fueled by a decades-long decline in the power of organized labor, has forced millions of Americans to turn to expensive consumer debt just to make ends meet.
That surge in credit card debt has been accompanied by a refusal on behalf of the federal government to place meaningful regulations on credit card lending practices. The Federal Reserve finally took steps in December to rein in deceptive credit card lending, but as Mike Lillis demonstrates for The Colorado Independent, the new rules are relatively modest given the scope of credit card-related abuses. Lenders can still do pretty much anything they want to a borrower once they miss a payment, and the Fed’s restrictions do not even go into effect until July 2010.
If low wages and predatory credit cards are not enough to push consumers into financial ruin, consider what is taking place in the student loan industry. The government keeps the student loan market going in two primary ways: by directly lending to students and by guaranteeing loans students take out from private lenders like Sallie Mae, making it cheaper for Sallie Mae to extend loans. The government-assisted private sector loans cost taxpayers significantly more money than loans made through the direct loan program.
When student lenders hit the skids this year amid a Wall Street-induced credit crunch, the government responded by financing student loans made through private companies.
But if the government is not only guaranteeing private-sector loans but financing them as well, the resulting scheme is essentially a less efficient version of the direct loan program, as Cole Robertson explains in a piece for The Nation. Sallie Mae CEO Albert Lord seems to approve of the bailout plan, but has not offered to return one penny of the orgiastic pay he’s accumulated over the past year in return for this taxpayer largess. Lord cashed out over $44 million in stock options in one day during the summer of 2007, and has been targeted by Congressional insider trading investigations for convenient sales of Sallie Mae stock.
A big federal bailout accompanied by outrageous executive compensation. Sounds familiar.
It is truly astonishing to consider how much damage conservatives have done to public attitudes on economic issues over the past 14 years. There is nothing inherently progressive about policy suggestions like like funding emergency health care, paying firefighters and teachers or refusing to allow lenders to arbitrarily change the terms of a contract without borrower consent. This stuff is basic sanity. At least 2009 promises not to be boring. We will either witness a return to said sanity that would have been unthinkable even a year ago or another depression. Happy New Year.
This post features links to the best independent, progressive reporting about the economy. Visit Economy.NewsLadder.net for a complete list of articles on immigration, or follow us on Twitter. And for the best progressive reporting on critical health and immigration issues, check out Healthcare.NewsLadder.net and Immigration.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.
Hilda Solis: Get Excited
Update: At 2:15 today, President-Elect Barack Obama confirmed the nomination of Rep. Hilda Solis,D-Calif, for Secretary of Labor.
President-elect Barack Obama has named Rep. Hilda Solis, D-Calif., as the next administration’s Secretary of Labor and is expected to formally announce the selection this afternoon. To put it simply, progressives are ecstatic about the pick.
“If you were to sketch an ideal Labor Secretary, you could hardly do much better,” Jonathan Stein writes for Mother Jones.
“Solis should make progressives feel pretty good,” according to Steve Benen of The Washington Monthly, who calls her nomination, “a big win for unions.”
Why all the excitement? As Harold Meyerson details in a great profile for The American Prospect, Solis led the successful push to raise California’s minimum wage in 1996, diverting funds from her own State Senate political account to fund a signature-gathering campaign that culminated in the measure’s passage over strong resistance from Republican Gov. Pete Wilson.
Solis doesn’t just have passion and patience, she’s got guts. When she ran for the House of Representatives in 2000, she took on a 9-term Democrat with a terrible record and absolutely trounced him in the primary, going on to win back California’s 32nd District for the left.
“In the House, Solis has continued to champion labor causes, immigrants’ rights, women’s health and environmental protections,” Meyerson writes.
She has a 100% rating from the AFL-CIO, and as Meyerson’s fellow Prospect-er Ezra Klein notes, she has successfully defused tensions between immigrant laborers and older union workers who viewed immigrants as a threat.
And then there’s her personal story. As the daughter of union worker immigrants from Nicaragua and Mexico, Solis embodies America’s most-prized and rarely realized ideal: the promise of opportunity for all citizens that rewards hard work.
The Labor Secretary position can be either enormously powerful or completely irrelevant, as demonstrated by the contrast between the tenures of President Bill Clinton’s first Labor Secretary, Robert Reich, and that of current Secretary Elaine Chao. In just four years, Reich secured the passage of the Family and Medical Leave Act, the Pension Protection Act and the School-to-Work Jobs Act, raised the minimum wage and still had time to call out deregulation ideologue, budget hawk and Treasury Secretary Robert Rubin on his reckless lunacy. Chao’s only accomplishment after eight years is a 2003 rule that denied overtime pay to 6 million workers. Progressives can trust Solis to ensure that the Department of Labor will finally be going to bat for laborers again.
This post features links to the best independent, progressive reporting about the economy. Visit Economy.NewsLadder.net for a complete list of articles on immigration, or follow us on Twitter. And for the best progressive reporting on critical health and immigration issues, check out Healthcare.NewsLadder.net and Immigration.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.