Posts tagged with 'state'
Weekly Audit: Republicans’ Budget Declares War on Medicare
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By Lindsay Beyerstein, Media Consortium blogger
The Republicans are poised to unveil a model budget on Tuesday that would effectively end Medicare by privatizing it, Steve Benen reports in the Washington Monthly. House Budget Committee Chair Paul Ryan (R-WI) is touting the budget as a strategy to reduce the national debt.
Ryan’s plan would turn Medicare from a single-payer system to a “premium support” system. “Premium support” is a euphemism for the government giving up to $15,000 per person, per year, to insurance companies to defray the cost of a health insurance policy.
As Benen points out, privatizing Medicare does nothing to contain health care costs. On the contrary, as insurance customers weary of double-digit premium increases can attest, private insurers have a miserable track record of containing costs. They excel at denying care and coverage, but that’s not the same thing.
The only way the government would save money under Ryan’s proposal is by paying a flat rate in vouchers. Medicare covers the full cost of medical treatments, but private insurers are typically much less generous. So, after paying into Medicare all their working lives, Americans currently 55 and younger would get vouchers for part of their health insurance and still have to pay out-of-pocket to approach the level of benefits that Medicare currently provides.
Taking aim at Medicaid
The poor are easy targets for Republican budget-slashing, Jamelle Bouie writes on TAPPED. Ryan’s proposal would also cut $1 trillion over the next 10 years from Medicaid, the joint federal-state health insurance program for the poor, by eliminating federal matching and providing all state funding through block grants. Most of this money would come from repealing the Affordable Care Act’s Medicaid expansion, which is slated to add 15 million people to Medicaid.
Block grants are cuts in disguise. Currently, Medicaid is an entitlement program, which means that states have to enroll everyone who is eligible, regardless of the state’s ability to pay. In return, the states get federal matching funds for each person in the program. Ryan and the Republicans want to change Medicaid into a block grant program where the federal government simply gives each state a lump sum to spend on Medicaid. The states want to use this new found “flexibility” to cut benefits, narrow eligibility criteria, and generally gut the program.
This is incredibly short-sighted. The current structure of Medicaid ensures extra federal funding for every new patient. So when unemployment rises and large numbers of new patients become eligible for Medicaid, the states get extra federal money for each of them. But with a block grant, the states would just have to stretch the existing block grants or find money from somewhere else in their budgets. Medicaid rolls surge during bad economic times, so a block grant system could make state budget crises even worse.
Ryan’s proposal has no chance of becoming law as long as Democrats control the Senate. The main purpose of the document is to lay out a platform for the 2012 elections.
Fake debt crisis
In The Nation, sociologist and activist Frances Fox Piven argues that the Republicans are hyping the debt threat to justify cuts to social programs:
Corporate America’s unprovoked assault on working people has been carried out by manufacturing a need for fiscal austerity. We are told that there is no more money for essential human services, for the care of children, or better public schools, or to help lower the cost of a college education. The fact is that big banks and large corporations are hoarding trillions in cash and using tax loopholes to bankrupt our communities.
She notes that Republican-backed tax cuts for the wealthy are a major contributor to the debt.
Jesus was a non-union carpenter?
Josh Harkinson of Mother Jones reports on the religious right’s crusade against unions. He notes that James Dobson of the socially conservative Family Research Council tweeted: “Pro-family voters should celebrate WI victory b/c public & private sector union bosses have marched lock-step w/liberal social agenda.”
Harkinson reports that the Family Research Council is backing the Republican incumbent, David Prosser, in today’s Wisconsin Supreme Court election–a battle that has become a proxy fight over Gov. Scott Walker’s anti-collective bargaining bill:
The FRC’s new political action committee, the Faith, Family, Freedom Fund, is airing ads on 34 Wisconsin radio stations in an effort to influence the April 5 judicial election that could ultimately decide the fate of the law. The ads target Wisconsin Assistant Attorney General JoAnne Kloppenburg, who’s running against a conservative incumbent, David Prosser, for a seat on the state Supreme Court. If elected, Kloppenburg would alter the balance on the court in favor of Democrats, giving them the ability to invalidate the recently enacted ban on public-employee collective bargaining. “Liberals see her as their best hope to advance their political agenda and strike down laws passed by a legislature and governor elected by the people,” say the ads. “A vote for Prosser is a vote to keep politics out of the Supreme Court.”
Roger Bybee of Working In These Times argues that recalling Republican state senators in Wisconsin is not enough to defend workers’ rights from Gov. Scott Walker’s anti-union onslaught.
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: The Real Legacy of Reaganomics
By 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: What Will The GOP Cut?
By Lindsay Beyerstein, Media Consortium blogger
The Republicans won control of the House and picked up seats in the Senate in the midterm election on nebulous promises to slash spending and reduce the size of the federal government. House Speaker John Boehner has pledged to reduce spending to 2008 levels, as per the GOP’s campaign manifesto, known as the “Pledge to America.”
But as Andy Kroll reports in Mother Jones, while the Pledge calls for a 21.7% reduction in spending on non-security discretionary programs, it doesn’t commit to any specific cuts. Medicare and Social Security are safe from this round of cuts because they are not discretionary.
The Center for Budget and Policy Priorities tried to give a glimpse of what the federal government might look like if all eligible agencies took a 21.7% budget cut across the board. As Kroll notes, it’s more likely that some programs will be spared, some trimmed, and some eliminated entirely.
However, the CBPP’s analysis gives a stark picture of the magnitude of the proposed cuts, Kroll writes:
What it found was grim, with middle class Americans set to lose the most.
K-12 education funding, the CBPP found, would drop by $8.7 billion, and food stamps for at-risk pregnant women, infants, and young children would lose $1.6 billion in funding. State- and local-run housing programs would lose $6.9 billion, and children and family social services would lose nearly $2.2 billion.
Already pinched state budgets would take massive hits as well, losing out on $31.6 billion in federal funding.
Cuts to state budgets mean even deeper cuts to education and social services that benefit working families. Starving the states is also a strategy to force state governments to default on their pension obligations to unionized public sector workers.
But the magnitude of these cuts might be giving the GOP cold feet. In January, Speaker Boehner told Brian Williams at NBC that he couldn’t name a single program that he planned to cut.
Inequality is personal
Paul Buchheit points out on AlterNet that if middle- and upper middle-class families had the same share of the economic pie that they did in the 1980s, they would be making $12,500 more per year. In other words, the economy has become vastly more productive over the last 30 years, but the extra wealth has become overwhelmingly concentrated in the hands of the very richest Americans at the expense of working families.
U.S. GDP quintupled since the 1980s, but most of the extra wealth has gone to the top 1% of earners. Nobody begrudges entrepreneurs a healthy return on their capital, but what about the 99% of earners who provided the labor. Where’s the return on their investment?
With looming government spending cuts to domestic programs, the middle- and upper-middle classes will face an even bigger hit to their real standard of living. Local and state governments are cutting back on services while hiking taxes and fees.
The richest 1% won’t feel these cuts as acutely as middle class families. If you have your own private swimming pool, you may not notice that the public pool is closed because the city can’t afford lifeguards. If you send your kids to private universities, you won’t be biting your nails over potential tuition hikes at public universities.
MLK’s legacy
The nation honored the legacy of Dr. Martin Luther King, Jr. on Monday. Roger Bybee of Working In These Times points out that, while King is remembered as a civil rights leader, he was also deeply committed to economic justice for all Americans. The politicians who praised King’s legacy on Monday should remember that Dr. King’s last great crusade was on behalf of sanitation workers in Memphis, public employees struggling for a decent standard of living.
Beck sets sights on 78-year-old CUNY prof
Amy Goodman of Democracy Now! interviews Frances Fox Piven, a 78-year-old distinguished professor of political science at the City University of New York, who may be the first person to inadvertently spark prime time conspiracy theory in the pages of a Media Consortium outlet. Right wing talk host Glenn Beck has identified Piven as the co-author of a violent blueprint to crash capitalism itself.
As Piven explains to Goodman, the bile stems from the suggestion made by her and her co-author Richard Cloward in a 1966 article in The Nation that social activists should help poor people access the benefits they were already legally entitled to. At that time, Piven recalls, the welfare system denied benefits to more than half of its eligible recipients. She and Cloward believed that the poor would become a more politically powerful and visible part of society if society suddenly had to make good on its promises of aid.
In July, Richard Kim of The Nation explained how an obscure 40-year-old article was recast as the “Rosetta Stone” of lefty politics, the blueprint to usher in an economic crisis which the left could exploit to bring about socialism.
Since Beck seized on Piven’s work and labeled her a violent revolutionary, she has been the target of death threats by commenters on Beck’s website. Political operatives posing as students came to her home to interview her. The interview later showed up on Andrew Breitbart’s conservative website.
Piven seems both concerned and bemused that her brief for reforming the welfare system of the 1960s has been labeled as a blueprint for destroying the capitalist system.
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: Giffords Shooting Reveals Flaws in U.S. Mental Health Services
By Lindsay Beyerstein, Media Consortium blogger
Rep. Gabrielle Giffords (D-AZ) was shot in the head at a constituent outreach event in a supermarket parking lot in Tucson on Saturday. In all, the gunman shot 18 people, killing 6, including a federal judge and a 9-year-old girl.
Jamelle Bouie of TAPPED urges President Barack Obama to take up the issue of mental health care in his upcoming speech on the mass shooting. Several people who knew the alleged shooter came forward with stories of bizarre behavior and run-ins with campus police at his community college. College administrators ordered him to seek treatment before he returned to school, but he does not appear to have done so.
H. Clarke Romans of the National Alliance on Mental Illness of Southern Arizona explained to Amy Goodman of Democracy Now! that mental health services in Arizona have been devastated by budget cuts.
In 2008 the state eliminated support services for all non-Medicaid behavioral health patients and stopped covering most brand-name psychiatric drugs. At least 28,000 Arizonans were affected. Arizonans with mental illnesses can expect even more cuts in the future as the state slashes spending in an attempt to address its budget shortfall.
In AlterNet, Adele Stan, argues that, while we don’t yet know the gunman’s motives, the right wing’s intensifying campaign of anti-government hysteria and violent rhetoric may have emboldened an already disturbed person:
Had the vitriolic rhetoric that today shapes Arizona’s political landscape (and, indeed, our national landscape) never come to call, Loughner may have found a different reason to go on a killing spree. But that vitriol does exist as a powerful prompt to the paranoid, and those who publicly deem war on the federal government a patriot’s duty should today be doing some soul-searching.
Reform repeal vote on hold
The House Republicans had scheduled a vote to repeal health care reform this week, but the vote has been postponed in the wake of the Giffords shooting. However, the conservative U.S. Chamber of Commerce threw its full weight behind the repeal effort on Tuesday, according to Suzy Khimm of Mother Jones. The Chamber is going back on its earlier pledge not to oppose health care reform outright.
CA insurer hikes rates by 59%
Nearly 200,000 policyholders in California are reeling from a 59% rate hike by Blue Shield, Brie Cadman reports for Change.org. According to the company, the increase was not due to health care reform, but rather to “increased utilization.” State insurance officials are reviewing the rate hike, but they can’t reverse it unless they find that Blue Shield fails to meet the legal medical loss ratio (percentage of premiums spent on medical care).
Reproductive rights in the states
Rachel Gould and Elizabeth Nash of the Guttmacher Institute recap reproductive rights in the states at RH Reality Check. Last year, 44 states and the District of Columbia considered 950 repro rights-related measures on issues ranging from abortion to sex ed. By year’s end, 89 new laws had been enacted in 32 states and DC. Of these, 39 were abortion laws.
The vast majority of new abortion laws served to further restrict women’s access to abortion. The passage of the Affordable Care Act spurred several states to pass laws restricting insurance coverage for abortions. The District of Columbia’s decision to reinstate public funding was one of the few exceptions to the trend of restrictive new laws.
Autism/vaccine study based on “deliberate fraud”
The author of a discredited study purporting to link autism and vaccines schemed to profit from his tainted research from the very beginning, according to new research published in the British Medical Journal.
It turns out that the lead author, Dr. Andrew Wakefield, was secretly working on a lawsuit against vaccine manufacturers when he published a study in The Lancet that appeared to show a link between vaccines and autism. We now know that Wakefield falsified the findings that sparked a global panic over the safety of childhood vaccines.
The journal retracted the paper last year. Wakefield was stripped of his license to practice medicine.
Some observers think these revelations will finally put the debate over vaccines and autism to rest. Kristina Chew of Care2 is doubtful:
I am very sure that, even with all the facts, data, and evidence laid before them, those who believe that vaccines or something in vaccines caused or somehow ‘contributed’ to their child becoming autistic will stand by their claims, and by Wakefield. Some of these persons are my friends. They are parents, as am I, of autistic children.
Wakefield’s die hard supporters weren’t swayed by earlier revelations of shoddy research and unethical conduct. It seems unlikely that this new found conflict of interest will change their minds.
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.
