Posts tagged with 'Republican'

Weekly Audit: Hostage-Taking Over the Debt Ceiling

Posted Apr 26, 2011 @ 11:29 am by
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Creative Commons, Flickr, cszarBy Lindsay Beyerstein, Media Consortium blogger

The latest contrived showdown between Congressional Republicans and the White House is over what concessions the GOP will demand in order to increase the federal debt ceiling.

George Zornick of The Nation explains how the shakedown works:

Congress now needs to approve any borrowing past the $14.3 trillion debt ceiling, which the United States will reach “no later” than May 16, according to Treasury Secretary Timothy Geithner. If Congress doesn’t raise the debt ceiling, the government would have to stop spending—including stopping interest payments on those Treasury bonds, meaning that the United States would effectively default on its debt.

The debt ceiling has to be raised and everyone knows it. Surely the Republicans knew it when they voted for tax cuts for the rich with borrowed money. If the debt ceiling is not raised, the United States will default on some of its obligations. Just like what happens after you miss a credit card payment, the country’s creditors will demand higher interest in order to lend to us in the future.

Playing chicken with the debt ceiling is a recipe for increasing the national debt. Paul Waldman argues in The American Prospect that the Republicans hate government so much that they are willing to declare war on the economy in a quixotic bid to smash the state:

The reason we’re now seeing an unprecedented amount of attention paid to a vote that ordinarily passes with little notice is that the Republican Party’s agenda is being set by a group of ideological radicals who seem quite willing to cripple the American economy if that’s what it takes to strike a blow against the government they hate so much.

Peak Crazy

At AlterNet, Joshua Holland explains why failure to raise the debt ceiling would be an economic catastrophe that could jeopardize the economic recovery. “Peak Crazy,” he calls it.

However, Holland notes that a showdown over the debt ceiling does not risk an immediate government shutdown, like the one we faced over the budget battle. Borrowing isn’t the only way that government agencies are funded. The government could still spend the $150 billion or so it takes in every month in tax revenue, for example.

Yet, Senate Minority Leader Mitch McConnell (R-Kentucky) has announced that 47 GOP senators oppose raising the debt ceiling unless “credible attempts” are made to cut federal spending. Meanwhile the Tea Party is launching an all-out lobbying effort to urge House Republicans not to raise the debt ceiling without major spending cuts.

The Tea Party’s wish list includes some total pipe dreams like a balanced budget amendment to the constitution, and a law to require a two-thirds majority for all future tax increases. Former senator and current U.S. presidential hopeful Rick Santorum cheerfully announced that he would let the United States default on its debt if health care reform is not repealed. Rep. Michele Bachmann (R-Minn) helpfully suggests paying the interest on Treasury Bills using money that would otherwise go to Social Security.

Shoot the hostage

Cenk Uygur of the Young Turks argues that Democrats are panicking needlessly and, once again, offering needless preemptive concessions to the Republican fringe in the form of a proposed “hard cap” on government spending, which would cap new government spending, and subtract any overruns from social welfare programs like Medicare and Social Security.

The truth, Uygur notes, is that Wall Street has already told the Republicans in no uncertain terms that the debt ceiling will be raised. The economic consequences of doing anything else would be unthinkable. The Tea Party can yell and scream, but the adults have already made the decision. Knowing this, Democrats should not be trying to placate the Republicans so as to induce them to do something they will ultimately end up doing.

Digby on Social Security

Democrats are wavering in their decades-long commitment to defend Social Security, Heather Digby Parton (a.k.a., “Digby”) writes in In These Times:

In a quixotic attempt to fix the problems in the current economy without confronting the plutocrats, the Democrats are using the illogical argument that since Social Security is projected to have a shortfall in 35 years, we must cut benefits now. And they seek to prove to “the market” that the government is fiscally responsible by showing it’s willing to inflict pain on its citizens—in the future.

Even if we do nothing, Social Security can pay out full benefits for the next 35 years. There is no crisis. A small increase on the payroll cap on Social Security could shore up the program for generations to come. Republicans oppose Social Security because they are ideologically opposed to social welfare programs, not because Social Security is broken.

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 Pulse: Paul Ryan’s Medicare Swindle

Posted Apr 13, 2011 @ 10:33 am by
Filed under: Health Care     Bookmark and Share

Creative Commons, Flickr, Jason L. ParksBy Lindsay Beyerstein, Media Consortium blogger

Robert Parry in In These Times examines how Paul Ryan’s budget test would turn healthcare for the elderly into one big free-market death panel.

Ryan’s plan privatizes Medicare, replacing it with premium support for insurance companies. That means the government would kick in a fixed amount of money towards insurance premiums for Americans over age 65. Ryan also wants to repeal the Affordable Care Act, which requires insurers to cover people with preexisting conditions. Ryan’s plan doesn’t guarantee that Americans over 65 could get insurance in the first place. Even if they could find an insurer willing to take them, there is no reason to believe that premium support would cover more than part of the cost.

Maybe the plan is to save money by pricing most seniors out of health insurance entirely. If you can’t get insurance in the first place, you don’t qualify for premium support.

Mitt Romney and health care

Former Massachusetts governor Mitt Romney kicked off the exploratory phase of his campaign this week, Lynda Waddington reports in the Iowa Independent. Ironically, this prospective frontrunner is best known for bringing Obama-style health care reform to Massachusetts.

Aswini Anburajan of TAPPED wonders whether Romney’s record on health care will hurt him in the primary. Repealing health care reform is one of the major themes for the Republican Party, and Romney is the architect of a similar system. However, Anburajan notes, campaigning to all but abolish Medicare hasn’t hurt GOP Budget Committee Chair Paul Ryan’s political status, even though seniors are a big part of the GOP base..

Part of the reason why Ryan hasn’t felt a backlash from seniors is that his plan preserves Medicare for people who are currently over 55 and will only decimate the program for younger people.

Demonizing pregnant users

At RH Reality Check, Lynn Paltrow takes the New York Times to task for a sensationalized story about children born to women who are dependent upon prescription painkillers. Paltrow notes that the same alarmist language was used to hype a non-existent epidemic of crack babies in the 1980s. The evidence suggests that the impact of drug use during pregnancy on the developing fetus is relatively minor compared to the effects of other factors that are correlated with drug use, such as poverty, poor nutrition, and lack of prenatal care.

If we assume there’s a clear causal relationships between using drugs and hurting babies, it’s easier to lay all the blame on the mother. The truth, Paltrow argues, is much more complicated. Drug use is just part of a constellation of unhealthy factors that conspire to give the children of poor and marginalized women a worse start in life.

Positing a distinct syndrome caused by drug abuse is often a first step towards stigmatizing, and even criminalizing, poor women who give birth to sick children.

Hungry women and children

Speaking of threats to the health of poor women and their children, the new budget deal slashes $500 million from nutrition programs, with the Women Infants and Children (WIC) food support program at the USDA taking the hardest hit, Tom Laskawy reports for Grist.

If you get your meals through an umbilical cord, the Republicans want to protect you; but if you have to eat groceries, you’re on your own.

Big Pharma hikes HIV drug prices

Elizabeth Lombino at Change.org reports that more than 8,000 people nationwide are on the waiting list for the AIDS Drug Assistance Program (ADAP), a government program that helps poor people living with HIV/AIDS pay for medications. Lombino notes that even as the ranks of patients who can’t cover their drugs continues to swell, pharmaceutical companies continue to raise their prices. The AIDS Healthcare Foundation is calling upon pharmaceutical companies to lower prices to help grapple with what has come to be known as the ADAP crisis. So far, it’s been to little effect.

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: Massive Protest In Wisconsin Shows Walker’s Overreach

Posted Mar 15, 2011 @ 10:44 am by
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Creative Commons, Flickr, Jessie ReederBy Lindsay Beyerstein, Media Consortium blogger

About 100,000 people gathered in Madison, Wisconsin to protest Gov. Scott Walker’s new anti-collective bargaining law. The state Senate hurriedly passed the bill without a quorum last Wednesday. Roger Bybee of Working In These Times reports:

The rally featured 50 farmers on tractors roaring around the Capitol to show their support for public workers and union representatives from across the nation, stressing the importance of the Wisconsin struggle. Protesters were addressed by a lineup of fiery speakers including fillmaker Michael Moore, the Texas populist radio broadcaster Jim Hightower, TV host Laura Flanders, the Rev. Jesse Jackson, U.S. Rep. Dennis Kucinich, U.S. Rep. Tammy Baldwin, and The Progressive editor Matt Rothschild, among others.

The bill is law, but the fight is far from over. The Wisconsin Democratic Party says it already has 45% of the signatures it needs to recall 8 Republican state senators. So far, canvassers have collected 56,000 signatures, up from 14,000 last weekend. The surge in signature gathering is another sign that the Walker government’s abrupt push to pass the bill has energized the opposition. (more…)

Weekly Audit: Standoff Continues in Wisconsin

Posted Mar 8, 2011 @ 11:56 am by
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Creative Commons, Flickr, antroverBy Lindsay Beyerstein, Media Consortium blogger

The 14 Democratic state senators who fled Wisconsin to thwart the passage of a draconian anti-union have no plans to return.

On Sunday night, a Wall Street Journal blog reported that the senators planned to return soon. Steve Benen of the Washington Monthly found it odd that the piece didn’t contain any direct quotes from the exiled Democrats. The claim that the Democrats were planning to return rested on a paraphrase of State Sen. Mike Miller said about the Democrats coming back. Miller says the Journal misconstrued his remarks and that the Dems are only coming back “when collective bargaining is off the table.”

It would be an odd time for Democrats to return. Republican governor Scott Walker has offered them zero concessions. Furthermore, as Benen observes, Walker’s popularity is plummeting. The latest poll by the Wisconsin Research Institute puts the governor’s approval rating at 43%, with 53% disapproving. A majority of respondents had favorable opinions of state Senate Democrats, public employee unions, and teachers’ unions.

Benen writes:

The significance of these polls can’t be overstated — they stiffen Democratic spines, while making Republicans increasingly nervous about standing behind an unpopular governor with an unpopular plan.

In YES! Magazine, Amy B. Dean explains why every American should care about the situation in Wisconsin. The collective bargaining rights of public employees are the central issue in this standoff. Walker is testing a radical new approach to unions and several other Republican governors are poised to follow his model if he succeeds. It is naive to assume that the war on unions will end with the public sector.

Jobs gap

Writing at The Nation, Chris Hayes explains why Washington doesn’t care about jobs. Hayes argues that Washington elites are insulated from the toll of unemployment by class and geography. The jobless rate for workers with college degrees is only 4.2%, which is less than half of the official unemployment rate of 9% and a quarter of the 16.1% underemployment rate. (The underemployment rate counts both the jobless who are still looking for work and those who have given up and left the labor force.) Furthermore, Hayes notes, the unemployment rate in greater Washington, D.C. is only 5.7%, which is lower than that of any other major city in America. He writes:

What these two numbers add up to is a governing elite that is profoundly alienated from the lived experiences of the millions of Americans who are barely surviving the ravages of the Great Recession. As much as the pernicious influence of big money and the plutocrats’ pseudo-obsession with budget deficits, it is this social distance between decision-makers and citizens that explains the almost surreal detachment of the current Washington political conversation from the economic realities working-class, middle-class and poor people face.

Even as the overall unemployment rate falls, economic recovery proves elusive for many workers of color, Shani O. Hilton reports at Colorlines.com. The February jobs report shows that the economy added 192,000 jobs, with overall unemployment falling by a tenth of a percentage point, bringing joblessness to its lowest rate since 2009. However, the unemployment rates for black and Hispanic workers remained fixed in February, at 15.3% and 11.6%, respectively.

Hilton notes that even if the economy were to add 200,000 jobs a month, it would take three years to bring general employment up to pre-recession levels.

Public innovation

The stereotype is that the private sector drives innovation. However, as Monica Potts reports in The American Prospect, industry’s well-deserved reputation for innovation is built on a foundation of publicly funded basic research. Conservatives often argue that the private sector would pick up the slack if public funding for basic research were reduced. Potts argues that public funding for basic research is essential because companies will naturally gravitate towards research that has an immediate payoff, instead of investing in cultivating deeper scientific understanding through basic research.

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 Pulse: The Republicans’ War On Women

Posted Feb 23, 2011 @ 11:45 am by
Filed under: Health Care     Bookmark and Share

Creative Commons, Flickr, outcast104By Lindsay Beyerstein, Media Consortium blogger

The entire federal government might shut down over birth control. Yes, birth control. This special edition of the Pulse is about the ongoing war against women being waged in Congress and in state legislatures nationwide.

Cutting birth control

Last Friday, the House voted to amend the continuing resolution to fund the federal government to defund the $317 million Title X Family Planning Program, a major beneficiary of which is Planned Parenthood. None of this money funds abortions. Instead, it goes to birth control, cancer screenings, and other reproductive health services for 5 million low-income Americans.

This kind of preventive care is highly cost-effective. Every federal family planning dollar saves an estimated $4 tax dollars on unintended pregnancy costs alone. Saving money by de-funding contraception is like “saving money” by not paying your rent. It’s not savings if you end up staying in a hotel that costs even more.

As Nick Baumann reports for Mother Jones, Senate Democrats are confident that they can defeat the measure. However, if that happens and the House Republicans won’t pass an acceptable alternative, the federal government will run out of money and shut down until the impasse is resolved. (more…)

Weekly Audit: HBGary Federal and The Chamber of Secrets

Posted Feb 15, 2011 @ 12:03 pm by
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Creative Commons, Flickr, laverrueBy Lindsay Beyerstein, Media Consortium blogger

The most influential business lobby group in the United States has been linked to a scheme to deploy dirty tricks against its political opponents. Josh Harkinson reports for Mother Jones that prospective vendors for the Chamber of Commerce hatched a plan to frame and entrap critics of the Chamber.

The plan came to light last week after hackers released thousands of emails obtained from the servers of HBGary Federal, a private security company. The emails reveal Chamber law firm Hunton & Williams was looking for firms to help it execute a plot to entrap bloggers, union officials and other Chamber critics. The goal, according to Harkinson, was to manufacture evidence that all the Chamber’s critics were working together to discredit the business group:

According to the emails, Chamber law firm Hunton & Williams wanted to hire digital sleuths that could demonstrate that the business group’s opponents had been working as a “single entity instead of a true ‘grasroots’ campaign.” That phrase and others suggest that the Chamber’s ultimate goal was to openly accuse its foes of a left-wing form of astroturfing.

HBGary Federal was apparently planning to pitch its services as a “Corporate Information Renaissance Cell” to the Chamber yesterday. The emails show that HBGary Federal and two other firms, Berico Technologies and Palantir, proposed to use the social networking pages of the Chamber’s enemies to manufacture evidence of supposed “relationships” between various players.

Labor of love

Robert Kuttner suggests in The American Prospect that organized labor may be the last best hope for reviving the middle class and restoring shared prosperity:

Though no longer centered in auto and steel factories, unions continue to offer lower-income Americans a path into the middle class–just ask a newly organized janitor, hotel worker, security guard, hospital paraprofessional, home-care worker, or warehouse, call-center, or food-service employee.

Kuttner notes that the average union employee earns about 20% more than a non-unionized worker doing the same job. He also cites evidence that unionized workers are more likely to vote for Democrats than their non-unionized counterparts and that the power of unions to deliver votes for Democrats had been growing steadily up until the Republican blowout in the midterm elections of 2010.

Budget bingo

Ari Berman of The Nation takes a closer look at President Obama’s proposed federal budget for 2012. The budget calls for investments in high speed rail and a national infrastructure bank. It does not tinker with Medicare or Social Security. The cuts proposed in the budget barely offset the cost of continuing the Bush tax cuts for the wealthy, Berman notes.

Meanwhile, David Corn of Mother Jones examines the president’s budget and feels deja vu from the Clinton administration. At a recent press conference, White House budget director Jared Lew outlined a budget that attempts to save money while”winning the future.” Obama’s budget promises $1.1 trillion in savings over the next decade, while maintaining investments in future-oriented research and development projects.

Corn notes that the administration is calling for $2.5 billion in cuts to a home heating program (LIHEAP) for the poor and elderly while simultaneously planning a national broadband network. But the administration has more or less given up on immediate job-creation in favor of long-term investment, Corn argues:

It seems the administration has concluded that after that tax-cut deal—which did amount to something of a second stimulus—there is not much else the White House can do via government spending (or tax cuts) to create jobs, especially with Republicans controlling the House.

That sounds good on paper, but how much are these ambitious big ticket projects going to do for Americans who are struggling in the current recession? He thinks it all sounds a lot like former president Bill Clinton’s centrist approach to the budget.

Consumers Anonymous

Carrie Barker of Ms. Magazine interviews CNN host Jane Velez-Mitchell about her new book Addict Nation, a book about American consumerism as a form of mass addiction. As a recovering alcoholic with 16 years of sobriety, Velez-Mitchell says she began to see connections between her personal struggles and the larger cultural script that “more is better.” She argues that our society needs a “consumer revolution” that will prompt people to rethink their buying patterns as conscious social and moral choices, as opposed to reflexive self-gratification.

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 Pulse: New Anti-Choice Bill Suggests More #DearJohn Letters Needed

Posted Feb 8, 2011 @ 6:46 pm by
Filed under: Health Care     Bookmark and Share

Creative Commons, Flickr, stormbearBy Lindsay Beyerstein, Media Consortium blogger

Health advocate Eesha Pandit and blogger Sady Doyle join GRITtv host Laura Flanders for a discussion of the House GOP’s draconian abortion bill, H.R.3. The bill, which Speaker John Boehner (R-OH) has called a top priority, would permanently restrict federal funding for abortion, even beyond the already stringent guidelines set out in the Hyde Amendment.

Doyle launched the #dearjohn Twitter campaign to channel public outrage over H.R. 3, particularly its clause that changed the existing “rape and incest” exception for Medicaid funding for abortion to an exception for “forcible rape.” The GOP ultimately removed the word “forcible,” but the bill’s other far-reaching restrictions remain in place.

Getting the “forcible” proviso removed from the bill was a small victory, but Doyle notes the fight is far from over. H.R. 3 isn’t the only radical anti-choice bill on the GOP’s legislative agenda. Carol Joffe reports at RH Reality Check that H.R.358 (the so-called “Protect Life Act”) would give hospitals unlimited discretion to turn away women who needed abortions, even to save their lives.

Insure pregnant women

A California state senator is taking on insurance companies for denying pregnancy-related health care coverage, Brie Cadman reports at Change.org. State senator Noreen Evans has introduced a bill that would protect insurance coverage for pregnant women in the individual health insurance market. Unlike group insurers and HMOs, private plans in the state are currently not required to cover maternity care. In 2004, 82% of individual health insurance plans in California covered maternity care; by 2009, only 19% of individual plans did so.

Irony alert

The individual mandate component of health care reform, which will impose a tax on people who don’t buy health insurance, is the bete noire of conservative Republicans, and the target of multiple constitutional challenges working their way through the courts. Ironically, as Simeon Talley explains at Campus Progress, the mandate was originally proposed by a Republican as a bulwark against socialized medicine:

Indeed the individual mandate has its genesis on the right. Ezra Klein interviews ‘Father of the Mandate’ Republican Mark Pauly: “We did it because we were concerned about the specter of single-payer insurance, which isn’t market-oriented, and we didn’t think [that] was a good idea. One feature was the individual mandate.”

Medicine and the public good

At truthout, Dr. Andrew Saal remembers what he said when a medical colleague asked him to sign a petition to repeal health care reform:

I centered myself and spoke in calm, measured phrases, with a warm smile. “I believe that the status quo is unsustainable. I believe that caring for those unable to pay is a matter of civic duty and professional honor. And while a pinch of free enterprise may keep the system nimble and foster innovation, at the end of the day, medicine is a social commodity similar to police and fire services.”

Saal’s colleague argues that he should be entitled to charge as much as the market will bear for medical services. After all, he studied hard and went to medical school. Saal sees things differently. He argues that, while doctors are entitled to fair compensation for their skilled services, medical knowledge is social. The doctor who places a cardiac stent didn’t invent the procedure. Saal notes that federal tax dollars fund the basic research that makes medical breakthroughs possible. While the stent itself may have been developed by a private company, the company couldn’t have invented it if the government hadn’t invested untold millions of dollars on basic research.

What’s more, Saal notes, doctors don’t pay the full cost of their schooling. The federal government subsidizes medical education through low interest federal loans, the university system itself, and Medicare reimbursements for interns and residents (doctors in training).

Nail salon hazards

Nail salon workers are exposed to a miasma of formaldehyde, toluene, and other known and suspected chemical hazards. The National Radio Project takes a closer look at the potential health effects of working long hours in poorly ventilated salons.

In California, the issue is of special concern to the Vietnamese community. An astonishing two-thirds of nail salon workers in the state are Vietnamese immigrants, most of them women in their childbearing years. Epidemiologists have yet to definitively prove a link between nail salon exposure and chronic disease, but the suspect chemicals have been shown to cause cancer in laboratory animals.

The bottom line is that safer chemicals are available. Activists say that regulators should mandate healthier alternatives now.

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: The Real Legacy of Reaganomics

Posted Feb 8, 2011 @ 12:00 pm by
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Creative Commons, Flickr, Randy Son of RobertBy Lindsay Beyerstein, Media Consortium blogger

Sunday marked the 100th anniversary of the birth of B-movie actor-turned-conservative president, Ronald Wilson Reagan. On the eve of the centennial, economist Yves Smith talked Reaganomics on the Real News Network. Smith argues that Reagan’s real legacy is the deregulation of the U.S. economy that set the stage for the economic meltdown of the late 2000s:

But [with] financial services, you have companies that have state guarantees. That’s the bottom line with the banking system. Ever since the 1930s, we in advanced economies have made the decision we’re not going to let the banking system fail. So if you don’t regulate banks, you have set up the situation that we have now, which is that you have socialized losses and privatized gains. And what have we seen come out of that? Financial crises. When we had a heavily regulated financial system, we had nearly 40 years of hardly any financial crises. When we started deregulating the banks, you saw increasing in frequency and increasing in significance financial crises directly resulting from that.

Spot of Tea?

Ordinary Britons are rallying to the defense of the welfare state. Faced with the deepest public spending cuts in living memory, citizens are taking to the streets to force deadbeat companies to pay their taxes, Johann Hari reports in The Nation. Their federal government has pledged to slash £7 billion in public spending. Cuts to subsidized housing alone will force 200,000 people out of their homes.

A group of friends in a local pub were galvanized by the news that Vodafone, one of the UK’s leading mobile phone companies, owed an astonishing £6 billion in back taxes. Calling themselves UK Uncut, the friends staged a protest outside Vodafone headquarters in London. The meme went viral. In the following days, several Vodafone stores were temporarily paralyzed by peaceful sit-ins.

Hari argues that the success of UK Uncut can teach American progressives a lot about how to build a grassroots counterpart to the Tea Party.

Persistent vegetative states

Big or small, liberal or conservative, state governments are screwed. That’s the upshot of Paul Starr’s latest essay in The American Prospect. Unemployment remains at recession levels and there is little political will to raise taxes. States can’t deficit spend like the feds do. So, the only option is public service cuts, which means firing teachers, doctors, firefighters, and other public workers.

Starr argues that the economic stimulus was a good start, but one that didn’t go far enough. As part of the stimulus, the federal government picked up a larger share of the states’ Medicaid costs. This was a good thing, in Starr’s view, because the extra federal dollars saved jobs while providing health care for the poor. Starr argues that state budget woes during recessions are so predictable, and the consequences so dire, that the Medicaid subsidy should kick in automatically whenever unemployment rises past a predetermined threshold.

Anti-union bill dead in CO

A bill to end collective bargaining for public employees in Colorado died in committee this week, according to Joseph Boven of the Colorado Independent. The bill would have abolished an executive order signed by former Gov. Bill Ritter, which gave state employees the right to organize. If the bill had been enacted, this kind of organizing would become illegal. This bill, sponsored by Sen. Shawn Mitchell (R-Broomfield), was just one of many attempts by Republicans to scapegoat public sector unions for what Mitchell calls the “financial Armageddon” facing state governments.

Smurfs rob Moms

“Smurfing” is money laundering slang for recruiting a lot of low-level accomplices to move money in untraceably small increments. But the word may soon have a new derogatory connotation.

Kevin Drum of Mother Jones reports that a kids’ video game, Smurfs’ Village, is depleting parents’ bank accounts, one wagon of Smurfberries at a time. Capcom’s game offers kids the chance to build the village from scratch. Along the way, they can pay real money for in-game resources. One mother was shocked to receive a $1,400 bill from Apple because her daughter bought innumerable imaginary props, such as $19 “buckets of snowflakes,” and a $100 “wagon of Smufberries.” The purchases require a password, but critics say it’s too easy for clever kids to circumvent the security. As Drum says, if adults want to waste their real dollars on virtual Farmville paraphernalia, that’s fine, but such a racket has no place in kids’ games.

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 Audit: Wall Street Destroyed $8 for Every $1 Earned

Posted Jan 24, 2011 @ 5:13 pm by
Filed under: Economy     Bookmark and Share

Flickr user Pichette Photo, via Creative Commons Licenseby Lindsay Beyerstein, Media Consortium blogger

Tonight, President Barack Obama will deliver his State of the Union address. A major theme of the speech will be jobs and the economy. Let’s hope the president spares a few minutes for Wall Street reforms that might prevent a repeat of the economic collapse that we’re slowly starting to recover from.

As Kai Wright points out in ColorLines, the State of the Union is the unofficial kickoff of the 2012 election season:

The still churning foreclosures and mounding debt in black and brown neighborhoods don’t suggest a stabilized economy anywhere except Wall Street, but let’s set that familiar fight to the side for now. The point is that whether we’re talking about creating jobs or seating district court judges, the time for making policy is gone. Starting tomorrow night, it’s all talk until we vote next.

Amy Dean of Working In These Times shares Wright’s skepticism. With the Republicans in control of the House and the Democrats hanging on to the Senate, we’re looking at a legislative stalemate until the next election. Dean argues that activists should use this lull in the action to refocus their organizing at the grassroots level.

Wall Street destroyed $8 for every $1 it earned

In AlterNet, Les Leopold asks why bankers are earning such huge bonuses while the financial system is in disarray. According to standard economic theory, your compensation reflects the value of your work. Yet, according to Leopold’s back-of-the-envelope calculations, the financial sector has destroyed $8 worth of wealth for every dollar it earned over the last 5 years. His estimate includes the wealth-destroying impact of the subprime mortgage crisis and other epic Wall Street blunders. (more…)

Weekly Pulse: White House Takes Offensive Against Health Care Repeal

Posted Jan 19, 2011 @ 12:03 pm by
Filed under: Health Care     Bookmark and Share

Creative Commons, Flicker, anolobbBy Lindsay Beyerstein, Media Consortium blogger

This week, House Republicans will hold a vote to repeal the Affordable Care Act. The bill is expected to pass the House, where the GOP holds a majority, but stall in the Democratic-controlled Senate. In the meantime, the symbolic vote is giving both Republicans and Democrats a pretext to publicly rehash their views on the legislation.

At AlterNet, Faiz Shakir and colleagues point out that repealing health care reform would cost the federal government an additional $320 billion over the next decade, according to the non-partisan Congressional Budget Office. The authors also note that despite Republican campaign promises to “repeal and replace” the law, their bill contains no replacement plan. Health care reform protects Americans with preexisting conditions from some forms discrimination by insurers. At least half of all Americans under the age of 65 could be construed as having a preexisting condition. No wonder only 1 in 4 Americans support repeal, according to an Associated Press-GfK poll released on Monday.

Perhaps that explains, as Paul Waldman reports at TAPPED, why the White House is vigorously defending health care reform. The Obama administration is making full use of the aforementioned statistics from The Department Health and Human Services on the percentage of Americans who have preexisting conditions:

As the House prepares to vote on the “Repeal the Puppy-Strangling Job-Vivisecting O-Commie-Care Act,” or whatever they’re now calling it, the White House and its allies actually seem to have their act together when it comes to fighting this war for public opinion. The latest is an analysis from the Department of Health and Human Services on just how many people have pre-existing conditions, and thus will be protected from denials of health insurance when the Affordable Care Act goes fully into effect in 2014

Republicans are fuming that Democrats are “politicizing” a policy debate by bringing up the uncomfortable fact that, if the GOP’s repeal plan became law, millions of people could lose their health insurance. As Waldman points out, the high incidence of preexisting conditions is an argument for a universal mandate. It’s impossible to insure people with known health problems at an affordable cost unless they share the risk with healthier policy-holders. Hence the need for a mandate.

Anti-choice at the end of life

In The Nation, Ann Neumann explains how anti-choice leaders fought to re-eliminate free end-of-life counseling for seniors under Medicare. The provision was taken out of the health care reform bill but briefly reinstated by Department of Health and Social Services before being rescinded again by HHS amid false allegations by anti-choice groups, including The Family Research Council, that the government was promulgating euthanasia for the elderly.

As seen on TV

The Kansas-based anti-choice group Operation Rescue is lashing out at the Iowa Board of Medicine for dismissing their complaint against Dr. Linda Haskell, Lynda Waddington reports in The Iowa Independent. Dr. Haskell attracted the ire of anti-choicers for using telemedicine to help doctors provide abortion care. The board investigated Operation Rescue’s allegations, which it cannot discuss or even acknowledge, but found no basis for sanctions against Haskell. Iowa medical authorities said they were still deliberating about the rules for telemedicine in general.

Salon retracts RFK vaccine story

Online news magazine Salon.com has retracted a 2005 article by Robert Kennedy, Jr. alleging a link between childhood vaccines and autism, Kristina Chew reports at Care2. The article leaned heavily on now discredited research by Dr. Andrew Wakefield. His research had been discredited for some time, but only recently did an investigative journalist reveal that Wakefield skewed his data as part of an elaborate scam to profit from a lawsuit against vaccine makers.

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