Posts tagged with 'The Nation'
The Wavelength: Court To FCC: Do Your Freakin’ Job! Plus: How the NewsCorps Scandal Impacts U.S. Media
Filed under: 
Welcome to the final edition of The Wavelength, a bi-weekly roundup of news and analysis focused on media policy. Stay tuned for more reporting on the ongoing impact of media policy from members of The Media Consortium.
By Eric K. Arnold, Media Consortium Blogger
Just when it seemed that the wave of media consolidation had reached tsunami proportions, a new court ruling is easing the troubled waters.
As Amy Miller and Lori Abbot of Public News Service report, the 3rd Circuit Court of Appeals ruled to block revisions to current FCC regulations which would further relax media cross-ownership rules. This ruling is a major victory for media reform advocates who say any further consolidation could severely challenge the notion of a free, independent press.
As previously reported, the new regulations would have likely had an adverse affect on local news reporting and diversity. Making the situation even more awkward is the FCC’s own recently issued media review, which posits the need for more localism and more diversity.
The upshot, write Miller and Abbot, is this: “In addition to preventing one company from owning both print and broadcast stations in the same market, the rulings mean more competition and more opportunity for women and minority ownership of media companies.”
The decision sends a clear message to the FCC that it has a mandate to prioritize public interest over corporate interests, a point it’s been somewhat confused on in the past.
News of the World Scandal Continues
In a case of media behaving badly, the UK’s News of the World—a newspaper owned by Rupert Murdoch, who also owns the US’s Fox News—ceased publication after being caught red-handed in an embarrassing scandal. Reportedly, the paper, which was founded in 1843 and has a circulation of 2.8 million, hacked the cellphones of families of soldiers killed in Afghanistan and Iraq, murder victims (including 13 year-old Milly Dowler), and celebrities. NoTW reportedly deleted voicemails from Dowler’s cellphone, causing her family to believe she hadn’t been killed.
Hitting where it hurts
Blowback from the scandal is hitting Murdoch hard. As blogger John Nichols writes in The Nation, “the damage is running deep, as members of Parliament… have called for placing a hold on the anticipated purchase by News Corp. of British Sky Broadcasting, a hugely-profitable satellite TV enterprise that Murdoch has coveted for years.”
The inquiry by Scotland Yard and the British government is just getting started, Nichols says, adding the sordid episode should raise questions about the Murdoch media empire’s practices in America: “Should Americans be appalled by a scandal in Britain? Certainly.”
Also in The Nation, D.D. Guttenplan blogs about the scandal, which, he notes, “wiped some $2.5 billion off the value of News Corporation, [Murdoch's] US-based holding company.” The larger issue, however, is that “Rupert Murdoch has been operating what amounts to a private intelligence service” which “gives News Corporation a kind of leverage over inquisitive regulators or troublesome politicians wielded by no other company on earth.”
But wait, it gets worse. As Adele Stan writes for AlterNet, Wall Street Journal CEO Les Hinton, a former executive chairman of Murdoch’s UK operation, has been implicated in the scandal. In 2006, Hinton told Parliament that the hacking was the work of one rogue reporter — a claim which has been revealed to be a lie. The WSJ, Stan says, did not disclose “the role its chief executive played in delivering misleading testimony before the British parliament” — which raises troubling questions about the paper’s ethics, especially considering its ties to the Koch Brothers-funded Americans for Prosperity foundation.
In other media policy-related news:
- Truthout has launched a new column, Ladydrawers, which addresses gender bias in comic book.
- New America Media reports on controversial Pulitzer-winning-journalist Jose Antonio Vargas, who recently revealed his illegal immigrant status.
Farewell, fondly
This week’s blog marks the final edition of the Wavelength, which started last March—right around the time AT&T announced its proposed $39 Billion merger with T-Mobile.
Over the past four months, the implications of the proposed mega-merger have reverberated through both the Beltway and the blogosphere, dominating much of the reportage around media policy. Other top stories included the Microsoft-Skype merger; the outcry over the latest instance of the FCC’s infamous “revolving door”; the ongoing debate over Net Neutrality; and a growing concern over privacy issues with regard to popular social media websites and mobile phones.
We’ve also taken a look at the state of media with regards to freedom of the press, independent journalism and censorship, both in the U.S. and abroad. While this picture has often been depressing – especially when detailing the connections between right-wing media, conservative political agendas, and corporate influence — there’s also plenty of reason for optimism and hope. Bright spots include the potential of alternatives to mainstream media like Low-Power TV to become a home for digital diversity; the ongoing exposes of WikiLeaks; the role of social media in Arab Spring; and reports of new collaborative efforts between international press outlets reporting on corruption and violence in foreign countries.
As we wrap up the Wavelength, we’d like to give a big shout-out goes out to the Media Consortium member organizations who released informative and revealing reporting week after week. As the Murdoch scandal illustrates, this coverage is invaluable, since the notion of “fair and balanced” journalism practiced by Fox News, the WSJ, and other mainstream outlets appears to be as much a hoax as the false hope perpetuated by NoTW that Dowler was still alive.
This post features links to the best independent, progressive reporting about media policy and media-related matters by members of The Media Consortium. It is free to reprint. To read more of the Wavelength, click here. You can also follow us on Twitter.
The Wavelength: WikiLeaks Isn’t Sexy Enough for U.S. Media
By Eric K. Arnold, Media Consortium Blogger
While mainstream media news cycles have been dominated by political sex scandals, important global stories have gone under-reported. According to AlterNet’s Rania Khalek, many of these stories were broken by WikiLeaks. Khalek spotlights five key revelations of 2011, including:
- How WikiLeaks spurred on the Tunisian uprising, which in turn led to similar uprisings in Egypt and Libya and has been dubbed “Arab Spring.”
- The “Guantanamo Files,” 700 classified documents that “paint a stunning picture of an oppressive detention system riddled with incoherence and cruelty at every stage.”
- The “Pakistan Papers,” which show that U.S. allies are “among the leading funders of international terrorism.”
- A series of cables documenting “a race to carve up the Arctic for resource exploitation” — released just as Secretary Clinton met with the Arctic Council to discuss oil exploration.
- Some 2,000 cables exposing “how the United States, with pressure from Exxon and Chevron, tried to interfere with an oil agreement between Haiti and Venezuela that would save Haiti, the poorest country in the Western hemisphere, $100 million per year or 10 percent of the country’s budget.”
This startling information, Khalek concludes, is “just the tip of the iceberg.” Yet, apart from The Nation, which is running a series on the Haitian cables – read it here and here – these stories “have received little attention in the US press.”
FCC Delays Ruling on Media Ownership
Over the past 15 years, numerous federal deregulatory actions have paved the way for unprecedented consolidation, which has severely impacted both competition and diversity. It all started with the Telecommunications Act of 1996, and the Federal Communication Commission (FCC) has been at the epicenter.
In the current climate, any further consolidation – such as the proposed AT&T/T-Mobile and Microsoft/Skype mergers – could affect consumers in drastic ways. Yet without legal intervention, we might be headed for a new era of massive media consolidation.
As Truthout’s Nadia Prupis writes, in 2007, the FCC “loosened the restrictions on a 35-year-old ban on newspaper-broadcast cross-ownership, giving new allowance for a single company to buy and operate both a major newspaper and a radio or TV station in the same market.” If the new cross-ownership rules are upheld, there would be nothing stopping a single media company from owning an unlimited number of radio, TV, and print media outlets in the same market—a move that could effectively gut the notion of a free, independent press, as well as any separation between giant media conglomerates.
Last February, a coalition of media advocacy groups (including Prometheus Radio Project, Media Alliance, Media Access Project, and Free Press) challenged the FCC in the Third Circuit Court of Appeals. Among their concerns, Prupis notes: “loopholes in the commission’s rules could allow newspapers to own TV stations of any size” and “media consolidation could prevent an increase in minority-owned stations and stifle the creation of local news programs.”
The FCC’s Media Ownership review was expected June 6, but it appears to have been delayed indefinitely. Commissioner Robert McDowell said it would be “awkward” for the FCC to rule prior to the outcome of the court’s decision. McDowell has been a proponent of further deregulation, which he believes could prop up the flagging newspaper industry.
The FCC Kills the Fairness Doctrine – Again.
“How many times does it take to kill a federal rule before it’s really dead?,” wonders Mother Jones’ Stephanie Mencimer. The rule in question is the “Fairness Doctrine,” a Truman-era policy enforced by the FCC “to ensure broadcasters presented balanced views in their coverage of controversial subjects.”
The policy was abolished in 1987, but conservatives have feared it would be resurrected by the Obama administration and liberal Democrats. No worries, according to FCC Chairman Julius Genachowski, who stated he fully supports “deleting the Fairness Doctrine and related provisions from the Code of Federal Regulations.”
AT&T/T-Mobile Merger Roundup
The AT&T/T-Mobile merger continues to be a much-discussed topic in both media and regulatory circles. As Truthout’s Prupis reports, Sprint and media advocacy group Free Press have separately filed “Petition to Deny” papers with the FCC, arguing that approval of the $39 billion deal would lead to higher prices and fewer choices and doesn’t serve the public’s interest. AT&T denied the allegations, calling the opponents “the usual suspects.”
In other AT&T/T-Mobile-related news, Media Alliance Executive Director Tracy Rosenberg wrote about a recent California Public Utilities Commission hearing on the merger for Oakland Local. Despite Rosenberg being outnumbered by shills from “Astroturf” organizations, the commission voted to investigate the deal, signaling that concerns over its impact are serious enough not to simply rubber-stamp it.
Finally, AlterNet’s David Rosen and Bruce Kushnick debunk myths AT&T has been perpetuating about broadband, including:
- “In the 22 states that AT&T controls, consumers will never get true broadband service.” This is because AT&T’s U-Verse runs on copper wires, not optical-fiber cables, and thus isn’t capable of speeds faster than 25 Mbps.
- “As it builds out its wireless network, AT&T is systematically undercutting its higher-performing wireline broadband network.”
- “There will only be a marginal improvement in service, far less than what is taking place in other advanced countries and championed as “4G,” and customers will be paying more.”
WSJ Board Member’s Questionable–and Profitable–Alliances
The collusion between news organizations and partisan political groups has resulted in some eyebrow-raising partnerships, and raised questions about whether the mainstream media is truly fair, balanced – and unbiased.
The Nation Institute and AlterNet recently published an article about Wall Street Journal editorial board member Stephen Moore’s questionable affiliations with right-wing activists. Adele Stan reports, “The paper is matched only by Fox News in its unabashed alliance with political advocacy organizations associated with Charles and David Koch, the billionaire brothers and noted conservative funders who run Koch Industries, the second-largest privately held corporation in the United States.”
Moore has been profiting handsomely from speaking at events organized by Americans For Prosperity and other conservative groups, which raises ethical concerns, Stan writes: “Moore’s involvement with such a blatantly political organization — one whose agenda aligns so obviously with that of the GOP — is an anomaly for an editorial board member of a national newspaper.”
Moyers: Media Seduction Has Become Toxic
The WSJ and Fox aren’t the only MSM outlets with questionable ties to the private sector. Speaking on Democracy Now, legendary journalist Bill Moyers points to relationship between defense contractor General Electric and television network NBC — which broadcasts political commentary show “Meet the Press” — as an example of “the consensual seduction of the mainstream media.” He calls this “one of the most dangerous toxins at work in America today.”
Moyers goes on to say that “The intimate relationship intertwining “mainstream media with power, corporate power, government power… is something that, without the antidote of independent reporting and analysis… we would be in a dark, dark pit with no light shining on us.”
This post features links to the best independent, progressive reporting about media policy and media-related matters by members of The Media Consortium. It is free to reprint. To read more of the Wavelength, click here. You can also follow us on Twitter.
The Wavelength: Attack of the Media Mega-Mergers! Skyprosoft, AT&T-Mobile and more
by Eric Arnold, Media Consortium blogger
Another day, another media mega-merger. The latest? Microsoft is buying Skype, the Internet communications company, for $8.5 billion.
So exactly what does the Skyprosoft deal mean for consumers? That’s the eight-point-five billion-dollar question. Public News Service’s Mark Scheerer says the deal could be beneficial if – and this is a big ‘if’ – “Microsoft will more strongly embrace network neutrality and other policies aimed at keeping the Web free.”
Net neutrality is a key component to the merger because, according to the Media Access Project’s Mark Wood, “without an open internet, large and anti-competitive carriers like AT&T and Verizon will have the power to cripple potentially competitive services such as Skype’s that will depend on access to existing networks.”
Should Telecoms Break Up?
AlterNet’s David Rosen and Bruce Kushnick make a case for the break-ups of the telecommunications trust, which provides “overpriced and inferior service, and [is] systematically overcharging the hapless American consumer.”
Citing crusading muckraker Ida Tarbell, who went after the Standard Oil monopoly a century ago, as an inspiration for the project, Rosen and Kushnick argue that the recent spate of mergers and acquisitions has put the telecom industry on a similar course of anti-competitive behavior. The answer, they say, is divestiture, which “will lead to increased competition, lower costs and better service.”
FCC’s Revolving Door Keeps on Spinning
Federal Communications Commissioner Meredith Attwell Baker is the latest FCC official to land a cushy job at—you guessed it—a telecommunications company. In June, Baker will be moving to work as Comcast’s senior vice-president for government affairs. As Truthout’s Nadia Prupis notes, Baker advocated strongly in favor of Comcast during the commission’s review of the $30 billion merger with NBC Universal earlier this year.
Specifically, Baker objected to proposed FCC requirements for Comcast-NBC “to maintain fair and competitive operations over the airwaves and online, show a minimum amount of local and children’s programming and make high-speed Internet access available to 2.5 million low-income households.”
Senate Probe Focuses on Mobile Security
Truthout’s Prupis also reports that Sen. Al Franken (D-MN) is leading a Senate probe into privacy issues raised by smart phones and other mobile broadband-enabled devices.
Recent concerns over privacy issues have put companies like Google and Apple—whose officials testified Tuesday in Washington—on the hot seat. As Prupis notes, “Legislators on the Senate Judiciary Subcommittee on Privacy, Technology and the Law said that without sufficient privacy measures, mobile devices carry the genuine potential for security breaches.” However, the Senate panel’s intent isn’t to limit innovation, but “create strong consumer protections as mobile technology continues to evolve.”
Post-merger, Comcast Lags on Localism
According to a recent study by Free Press (PDF available here), Comcast-owned Telemundo stations haven’t kept promises made to feature more local news – a key condition of the Comcast-NBC merger. While the study suggests that a poor commitment to localism for Telemundo stations was a pre-existing condition, dating back to NBC Universal’s 2002 purchase of the Spanish-language network, it also found that “Comcast has committed to increasing local news production in only six of the 15 communities served by its Telemundo owned-and-operated stations (O&Os).”
The report also found numerous discrepancies in Comcast’s FCC localism filings, including falsely claiming that advertising constituted local news and failing to include descriptions of programs it claimed were local, making it “difficult for the public and the FCC to determine with any accuracy whether the programming listed actually meets the merger commitment.”
Revisiting Protest Music
What does protest music have to do with media policy? Well, when’s the last time you heard Public Enemy’s “Fight the Power” on the radio?
Protest music has all but disappeared from the commercial music landscape, unless you count Lady Gaga’s “Born This Way.” Yet, in an age of media consolidation and corporate-controlled media, it’s good to remember the music scene wasn’t always so timid. Recently, The Nation asked readers to list their Top Ten Protest Songs. They received an overwhelming response, with more than 3,000 entries, and even more streaming in daily.
As the editors note, “five seminal songs [vied] for consideration for the top slot: Woody Guthrie’s “This Land is Your Land,” Florence Reese’s “Which Side Are You On,” Bob Dylan’s “Masters of War” and “Blowin’ in the Wind,” and Pete Seeger’s “Where Have All the Flowers Gone.””
The first list posted online—more are planned—includes music by Public Enemy, Marvin Gaye, Paul Robeson, John Prine, Anti-Flag, The Jam, Malvina Reynolds, Iris DeMent, Creedence Clearwater Revival, and Claude Joseph Rouget de Lisle.
World Press Freedom Day
“Press freedom is at its lowest level in 12 years,” according to Monika Bauerlein and Clara Jeffery of Mother Jones. In honor of World Press Freedom Day, Bauerlein and Jeffery called attention to the 16 journalists currently held in Libya, as well as the two American journalists still detained in Iran (one of whom is a MoJo reporter).
Inter Press Service created a Facebook page to celebrate WPFD and compile reports on the state of freedom of the press from around the globe. It’s a fascinating list that outlines the dangers reporters face—which sometimes results in self-censorship—as well as the prevalence of censorship of political topics in other countries, especially those engaged in bloody civil conflicts. Here are a few choice stories:
- As Amantha Perera reports from Sri Lanka, one casualty of that country’s decades-long civil war (which ended in 2009) was journalistic independence. “The media became a part of the military operation… No one was able to report objectively, there was pressure on them from all parties.”
- In Egypt, Cam McGrath writes, the rebellion which toppled the Mubarak government has brought significant changes for reporters. “Before Feb. 11, we had strict orders not to discuss certain topics, such as the Muslim Brotherhood or (Mubarak’s political opponent) Mohamed El Baradei,” says Ashraf El-Leithy, deputy editor of Middle East News Agency (MENA), Egypt’s official news wire. “Now we have complete freedom to write about anything – without any restriction.”
- In Mexico City, says Daniela Pastrana, the influence of drug cartels has presented distinct challenges to reporting in a state where corruption and violence are widespread, and journalists, police, and government officials are routinely murdered – resulting in collective efforts, meticulous fact-checking, and an emphasis on obtaining public records.
Ethnic Press Grapples With Media Policy Issues
New York Community Media Alliance’s Jehangir Khattak reports for New America Media that a recent information exchange between journalists and advocates held in Boston at the National Conference for Media Reform in April helped the ethnic press address ways to better cover media policy issues for their audiences.
As Khattak notes, the exchange “addressed steps ethnic and community media can take to increase coverage of media policy issues and how to improve the quality of current reporting. [It] also examined the role of media policy advocates in crafting the best course for effective messaging on these issues and what steps they should take.”
Understanding media policy issues can help close the digital divide, which affects underserved, ethnic and minority communities the most.
The Wavelength is a project of The Media Consortium, a network of leading independent media outlets. This post features the best independent, progressive reporting about media policy by members of The Media Consortium. It is free to reprint. To read more of the Wavelength, click here.You can also follow us on Twitter.
Weekly Mulch: Greening the Royal Wedding is the Least of Our Worries
by Sarah Laskow, Media Consortium blogger
The biggest news for the environment this week might just be that the Duke and Duchess of Cambridge took pains to add a couple of green touches to this morning’s Royal Wedding. The flowers were seasonal, the food locally grown, and the emissions offset.
At Care2, Laura Bailey has a few more ideas for couples inclined to green a wedding: Wear a vintage wedding dress. Exchange heirloom rings. Give guests environmentally friendly wedding gifts. Ask them to donate to a charity instead of stocking your household with kitchen appliances.
Anyway…
Those of us who don’t live in the fantasy land of British royalty do have bigger problems to worry about: tornadoes, jobs, climate change. At Grist, David Roberts argues that America’s inability to act on this last problem is tied to the general insecurity running rampant:
Americans are so battered and anxious right now. Median wages are flat, unemployment is high, politics is paralyzed. Middle-class families are one health problem away from ruin, and when they fall, there’s no net. That kind of insecurity, as much as anything, explains the American reticence to launch bold new social programs.
The first step to solving climate change, in this formulation, is to give average people two legs to stand on financially. Once Americans feel more confident about today, they’ll be more like to worry about the big problems of the future.
No nuclear
It’s vital that the country get to a place where real discussions about how to deal with the threats of climate change can happen, because the solutions the country’s relying on now won’t cut it in the long term. Take nuclear energy. It plays a key role in America’s energy strategy for the future, despite the compelling reasons for building fewer, not more, plants.
At AlterNet, Norman Solomon, a writer with a long history of arguing against nuclear energy, writes that California needs to shut down its two nuclear plants. He’s worried about the near-term consequences of creating nuclear power in an earthquake-prone zone but also about the long-term impacts of pro-nuclear policies:
The Diablo Canyon plant near San Luis Obispo and the San Onofre plant on the southern California coast are vulnerable to meltdowns from earthquakes and threaten both residents and the environment.
Reactor safety is just one of the concerns. Each nuclear power plant creates radioactive waste that will remain deadly for thousands of years. This is not the kind of legacy that we should leave for future generations.
This week also marked the 25th anniversary of the meltdown at Chernobyl. At The Nation, Peter Rothberg reminds us that nuclear accidents wreak havoc for years to come. The Chernobyl meltdown, he writes, “has caused tens of thousands of cancer deaths, and showed just how far-reaching the ramifications of a serious nuclear accident could be.” Rothberg and Kevin Gostolza also rounded up a list of ten great anti-nuclear songs.
No oil
Nuclear isn’t the only current energy source that poses intolerable risks. As the price of oil has rocketed upwards in the past few weeks, the country has started freaking out and, as Marah Hardt writes at Change.org, in Alaska, state officials are pressuring the federal government to open up oil drilling there. But as Hardt points out:
Spills can and will happen. And in the freezing, extreme conditions of the Arctic—think extended periods of darkness, fog, sub-zero temperatures, hurricane-force storms, and lots of moving sea ice—clean-up efforts would be nearly impossible. Just this past February, an oil spill off Norway’s only marine reserve proved how difficult clean-up operations can be, even in relatively calm conditions: oil leaked underneath sea ice, where it was impossible to reach, and surface skimming booms quickly clogged with ice, rendering them useless.
No energy?
No matter what we do, however, gathering the energy used to power our lives will take some toll on the environment. A large portion of clean energy in states like New York, for example, comes from hydroelectric power—dams. But dams are environmental villains of long-standing, as well.
In the West, dams along the Colorado River are negatively impacting the region’s national parks, Public News Service’s Kathleen Ryan reports:
David Nimkin, NPCA’s Southwest regional director, says all of the parks in the [Colorad River] basin, including the Black Canyon of the Gunnison National Park and the Dinosaur National Monument in Colorado, are seeing the sometimes-unintended consequences of placing dams along the river, from unnatural water flow patterns, to the introduction of non-native fish species, or increased river sediment and temperatures.
“The dams also fragment the system as whole, creating small isolated little ecosystems and areas that are not consistent with overall river conditions.”
With these sorts of choices, sometimes it is easier to worry about the little changes we can make to assuage our environmental consciences: recycled wedding invitations might not save the world, but they might hurt it that much less.
This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Audit: Hostage-Taking Over the Debt Ceiling
By 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 Audit: The Shocking Truth About Taxes
By Lindsay Beyerstein, Media Consortium blogger
The super rich are different from you and me. For one thing, their tax rates are lower.
According to IRS statistics, the nation’s top 400 taxpayers increased their average income by 392% and slashed their average tax rate by 37% between 1992 and 2007, Dave Gilson reports in Mother Jones. Furthermore, when you factor in payroll taxes, the tax rate for Americans earning $370,000 is nearly equal to the rate for those making between $43,000 and $69,000 a year.
Meanwhile, at TAPPED, Jamelle Bouie notes that, in 2007, more than 10,000 Americans reported incomes of $200,000 or higher and paid no income tax at all. These lucky ducks are known to the IRS as HINTs, which stands for High Income, No Taxes.
Pseudo-farms of the rich and tax-dodging
The ultra-rich are using deluxe hobby farms to dodge millions of dollars in taxes, Yasha Levine reports for The Nation:
Take Michael Dell, founder of Dell Computers and the second-richest Texan, who qualified for an agricultural property tax break on his sprawling 1,757-acre residential ranch in suburban Austin and saved over $1 million simply because his family and friends sometimes use the land as a private hunting preserve to shoot deer. Or take billionaire publisher Steve Forbes, who got more than a 90 percent property tax reduction on hundreds of acres of his multimillion-dollar estate in upscale Bedminister, New Jersey, just by putting a couple of cows out to pasture.
Agricultural tax breaks were originally designed to help farmers stay on their land as suburban sprawl grew up around them. As neighborhoods shifted from rural to residential in the 1950s and ’60s, farmers struggled to keep up with rising local taxes.
So, who’s a farmer for tax purposes? Levine reports that the standards are ridiculously low in many states, like New Jersey, where a yard full of weeds can qualify as a farm.
Worst of all, tax breaks for faux farms are depriving public schools of billions of dollars of desperately needed revenue. In Texas–which loses over a billion dollars a year in property taxes from pseudo-ranches of the rich and famous–hundreds of public school students are taking to the streets to protest massive proposed layoffs of teachers and support staffers, Abby Rapoport reports in the Texas Observer.
Tax me, I’m rich
A group of self-proclaimed “trust fund babies” is demanding higher taxes, Pete Redington reports for Working In These Times:
Resource Generation recently teamed up with another nonprofit that organizes affluent activists, Wealth for the Common Good, to form a Progressive Tax Campaign. They will be organizing and advocating a change in the policy, laws and perceptions of our tax system. Specifically, the campaign aims to draw attention to the social services that taxing the wealthy could fund, and advocates higher tax bracket rates for top income earners, as well as higher taxes on investment income.
Major debt
Student loan debt is likely to reach $1 trillion this year, outpacing credit card debt for the second year in a row, Julie Margetta Morgan reports for Campus Progress. Student loans can be a smart investment if they lead to a lifetime of higher earnings. However, Margetta Morgan notes, the average bachelor’s degree holder will shell out $250 a month for a decade to pay back the loan.
Many Americans won’t pay off their debt until their own children are in college. President Obama was still making payments into his late 40s.
As college tuition continues to rise, we can expect students to borrow even more for their education in years to come. Much of this debt is guaranteed by the taxpayer. Margetta Morgan argues that colleges should be doing more to educate students about smart borrowing.
The economics of happiness
Kristy Leissle reviews the new documentary, The Economics of Happiness, for YES! Magazine. The film argues that community is the foundation of happiness and that globalization is the enemy of community. The movie also examines what ordinary citizens can do to nurture their own communities.
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: Government Shutdown Averted, But At What Cost?
By Lindsay Beyerstein, Media Consortium blogger
Congressional leaders and President Barack Obama reached an eleventh hour budget deal on Friday night, to fund the government for the rest of the 2011 fiscal year and avert a government shutdown for the time being.
The deal would cut about $38 billion, Amy Goodman reports for Democracy Now!, including $13 billion in cuts to the Department of Health, Labor, and Human Services.
John Nichols describes the nuts and bolts of the stopgap plan in The Nation:
The arrangement worked out Friday night averted the threatened shutdown with a two-step process. First, the House and Senate passed a one-week spending bill that addressed the immediate threat. That should give Congress and the White House time to finalize a fiscal 2011 spending deal—on which they have agreed in principle—before an April 15 deadline.
The Republicans will not be allowed to zero out Planned Parenthood. Instead they were allowed a separate, largely symbolic vote, which passed the House, but which is expected to die in the Senate.
Planned Parenthood and ACORN
Nick Baumann of Mother Jones argues that the deal is a case study in the priorities of the Democratic Party. At the last minute, congressional Democrats rallied to save Planned Parenthood. The venerable family planning organization was under fire because of an undercover video sting by Lila Rose, a onetime protegee of conservative propagandist James O’Keefe, who himself pulled a similar stunt against the anti-poverty, pro-voter registration group ACORN in 2009.
O’Keefe’s videos created a media firestorm and Congress rushed to de-fund ACORN with little protest from Democrats. Subsequent independent investigations revealed that the tapes had been deceptively edited. Vindication came too late for ACORN, which was forced to close its doors.
Baumann argues that Democrats spared Planned Parenthood and sacrificed ACORN because ACORN didn’t have friends in the right places:
Abortion rights affect everyone. But to put it bluntly, big Dem donors care a lot more about abortion rights than they do about community organizers in inner cities.
Specious “victory”
In the days leading up to the deal, the media created the expectation that the budget was a game that one party would “win.” Paul Waldman of The American Prospect argues that in his eagerness to declare “victory” in the budget showdown, President Obama is undermining his own political agenda.
It would have been nice if when announcing the budget deal, President Obama had set aside the politician’s natural inclination to declare victory and his own preference for casting himself as the adult who settles things between the squabbling children. He could have said something like this: “The deal we just made is preferable to a government shutdown, which would have been truly disastrous. But nobody should mistake it for anything but the tragedy it is. As a result of the cuts Republicans have forced, people who rely on government services will suffer, and the economy will lose jobs. The Republicans held the government hostage, and we had no choice but to pay the ransom.”
By rushing to champion the spending cuts, Obama may be saving face, but he’s also setting a precedent that will make the next round of cuts even easier. The truth is that Democrats conceded under duress, they didn’t volunteer to cut spending because they thought it would help the country.
Indeed, Democrats agreed to far more cuts than the Republicans initially asked for. Cenk Uygur of the Young Turks argues that the Tea Party and the ostensibly more mainstream Republicans set up a very effective good cop/bad cop negotiating strategy in which the Democrats would offer cuts and the mainstream Republicans would say, “I’d like to help you, really I would, but you know my partner isn’t going to like that.”
Corporate taxes
Joshua Holland of AlterNet explains how corporate American has successfully lobbied to shift an ever-increasing share of its tax burden onto the backs of individual citizens:
Well, consider this: in the 1940s, corporations paid 43 percent of all the federal income taxes collected in this country. In the 1950s, they picked up the tab for 39 percent. But by the time the 1990s rolled around, corporations were paying just 18.9 percent of federal income taxes, and they forked over the same figure in the first decade of this century. We – working people – paid the difference.
Something to think about as we prepare to file our income tax returns.
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: Republicans’ Budget Declares War on Medicare
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 Mulch: Saying No to the Nuclear Option
by Sarah Laskow, Media Consortium blogger
Faced with the nuclear crisis in Japan, governments around the world are confronting the vulnerabilities of their nuclear energy programs. Some European countries, such as Germany and France, are considering more stringent safety measures or backing off of nuclear development altogether, but in the United States, the Obama administration is pushing forward with plans for increased nuclear energy production.
Ultimately, these questions are the same that the country faced after last summer’s Gulf Coast oil spill. As we search for more and more clever ways to fill our energy needs, can we write off the risk of disaster? Or are these large-scale catastrophes so inevitable that the only option is to stop pursuing the policies that lead to them?
The risks of nuclear
As Inter Press Service’s Andrea Lund reports, anti-nuclear groups are using the Japanese disaster as just one example of the disadvantages of nuclear power. Linda Gunter, of the group Beyond Nuclear, told Lund:
Even if you get away from the safety issue, which is obviously front and centre right now because of what’s happening in Japan, and you look at solutions to climate change, then nuclear energy takes way too long to build, reactors take years to come online, they’re wildly expensive. Most of the burden of the cost will fall on the U.S. taxpayer in this country, so why go there?…The possibility of it going radically wrong, the outcome is so awful that morally you can’t justify it. The reliability of nuclear power is practically zero in an emergency when you have this confluence of natural disasters.
And, as Maureen Nandini Mitra writes at Earth Island Journal, there are plenty of nuclear plants that are at risk. “More than 100 of the world’s reactors are already sited in areas of high seismic activity,” she reports. “And what’s happening in Japan makes one thing clear – we have absolutely no idea if any of these plants are actually capable of withstanding unprecedented natural disasters.”
Build up
The irony of nuclear energy is that the world started relying on it in part to mitigate the perceived threat of nuclear weapons. Jonathan Schell writes in The Nation about nuclear power’s transition from warheads to reactors:
A key turning point was President Dwight Eisenhower’s Atoms for Peace proposal in 1953, which required nuclear-armed nations to sell nuclear power technology to other nations in exchange for following certain nonproliferation rules. This bargain is now enshrined in the Nuclear Nonproliferation Treaty, which promotes nuclear power even as it discourages nuclear weapons….
Eisenhower needed some proposal to temper his growing reputation as a reckless nuclear hawk. Atoms for Peace met this need. The solution to nuclear danger, he said, was “to take this weapon out of the hands of the soldiers” and put it “into the hands of those who will know how to strip its military casing and adapt it to the arts of peace”—chiefly, those who would use it to build nuclear power plants.
While the threat of nuclear war still looms, since World War II, the nuclear materials that have caused the most damage have been those in the energy industry. And, as Schell reminds us, soldiers still have nuclear weapons in hand, as well.
The nuclear era
The Obama administration has always been gung-ho about nuclear energy: The president is from Illinois, after all, where Exelon Corp., one of the countries’ biggest nuclear providers, is based. Even in the face of Japan’s disaster, the administration is not backing off of its push for nuclear, as Kate Sheppard reports at Mother Jones:
Nuclear power is part of the “clean energy standard” that Obama outlined in his State of the Union speech in January. And in the 2011 budget, the administration called for a three-fold increase in federal loan guarantees for new nuclear power plants, from the $18.5 billion that Congress has already approved to $54.5 billion. “We are aggressively pursuing nuclear energy,” said Energy Secretary Steven Chu in February 2010 as he unveiled the budget….In Monday’s White House press briefing, press secretary Jay Carney said that nuclear energy “remains a part of the president’s overall energy plan.”
The state of safety in the U.S. nuclear industry isn’t particularly reassuring, though. As Arnie Gunderson told Democracy Now!‘s Amy Goodman, almost a quarter of American nuclear plants rely on the same design as the one currently faltering in Japan. Even worse, experts have known for decades that the design of this reactor is not safe. Gunderson explained:
This reactor design, this containment design, has been questioned since 1972. The NRC in 1972 said we never should have licensed this containment. And in 1985, the NRC said they thought it was about a 90 percent chance that in a severe accident this containment would fail. So, that we’re seeing it at Fukushima is an indication that this is a weak link. It’s this Mark I, General Electric Mark I, containment. And we have—essentially one-quarter of all of the nuclear reactors in the United States, 23 out of 104, are of this identical design.
It’d be reassuring if the U.S. government could promise that our superior safety standards would overcome these dangers. But, as Mother Jones‘ Sheppard writes, the day before the earthquake in Japan, the Nuclear Regulatory Commission extended the life a Vermont plant using this very design, over the objections of the state’s legislature.
Stumbling with stellar fire
Whatever the attractions of nuclear energy, it’s a dangerous business. The Nation‘s Schell puts it best when he argues that the fallibility of humankind is the biggest risk factor. He writes:
The problem is not that another backup generator is needed, or that the safety rules aren’t tight enough, or that the pit for the nuclear waste is in the wrong geological location, or that controls on proliferation are lax. It is that a stumbling, imperfect, probably imperfectable creature like ourselves is unfit to wield the stellar fire released by the split or fused atom.
This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Pulse: Japan’s Nuclear Crisis Deepens
By Lindsay Beyerstein, Media Consortium blogger
A second reactor unit at the Fukushima Daiichi nuclear plant in Japan may have ruptured, authorities announced on Wednesday. This is on top of their earlier revelation that the containment vessel of a separate reactor unit had cracked.
As of Tuesday, four nuclear reactors in Japan seem to be in partial meltdown in the wake of an earthquake and tsunami, according to Christian Parenti of the Nation:
One of them, reactor No. 2, seems to have ruptured. The situation is spinning out of control as radiation levels spike. The US Navy has pulled back its aircraft carrier, the USS Ronald Reagan, after seventeen of its crew were exposed to radiation while flying sixty miles off the Japanese coast.
But despite three major explosions—at reactor No. 1, then No. 3, then No. 2—the Fukushima containment vessels seem to be holding. (Chernobyl lacked that precaution, having only a flimsy cement containment shell that collapsed, allowing the massive release of radioactive material.)
So, the good news is that only one out of four of the reactors is teetering on the brink of a full meltdown, and engineers might still be able to stave off disaster. The bad news, Parenti explains, is that spent fuel rods on the reactor sites could pose grave health hazards even if the threat of meltdown is averted. Even so-called “spent” rods remain highly radioactive.
The big question is whether the facilities that house this waste survived the earthquake, the tsunami, and any subsequent massive explosions at the nearby reactor. Given the magnitude of the destruction, and the relatively flimsy facilities used to house the spent rods, it seems unlikely that all the containment pools emerged unscathed. Parenti explains:
Unlike the reactors, spent fuel pools are not—repeat not—housed in any sort of hardened or sealed containment structures. Rather, the fuel rods are packed tightly together in pools of water that are often several stories above ground.
A pond at the Fukushima Daiichi plant is overheating, but radiation levels were so high that the Japanese military has postponed a helicopter mission to douse the pond with water.
Journalist and environmental activist Harvey Wasserman tells the Real News Network that the housing the spent rods (a.k.a. nuclear waste) is a chronic problem for the global nuclear industry.
Wasserman told GRITtv that the west coast of the United States has reactors that could suffer a similar fate in the event of a sufficiently large earthquake.
“If I were in Japan, I would at least get the children away from the reactor, because their bodies are growing faster and their cells are more susceptible to radiation damage. I would go out to 50 kilometers and at least get the children away from those reactors,” nuclear engineer Arnie Gundersen told DemocracyNow! on Tuesday. At the time he said this, 70,000 residents had already been forced to evacuate their homes, and another 140,000 were ordered to stay indoors.
Mainstreaming anti-contraception
Kirsten Powers, Fox News’ resident self-proclaimed liberal, took to the pages of the Daily Beast recently to make the bizarre case that Planned Parenthood should be de-funded because the 100-year-old organization doesn’t really prevent the half-million abortions that it claims to prevent by supplying millions of clients with reliable birth control. (Powers was forced to concede that a gross statistical error rendered her entire piece invalid.) At RH Reality Check, Amanda Marcotte describes how Powers attempted to repackage fringe anti-contraception arguments for a mainstream audience. At TAPPED, I explain why Planned Parenthood’s abortion-prevention claim is rock solid.
Diet quackery
Unscrupulous doctors are cashing in on the latest diet fad: hormone injections derived from the urine of pregnant women, Kristina Chew notes for Care2.com. Patients pay $1,000 for consultations, a supply human chorionic gonadotropin (hCG), and a 500-calorie-a-day diet plan. There is no evidence that hCG increases weight loss more than a starvation diet alone. But paying $1,000 to inject yourself in the butt every day does evidently work up a hell of a placebo 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.
