A Michigan woman threatened a Minnesota newspaper with mass murder for criticizing Rep. Michelle Bachmann (R-MN)'s anti-health reform rally, reports Paul Schmelzer in the Minnesota Independent:
...A woman in Michigan, angered over a newspaper editorial criticizing Bachmann's event, threatened to take a gun to the paper and "do what they did at Fort Hood" in response.
David Corn of Mother Jones reports that Bachmann (R-MN) may also face an ethics investigation for using her taxpayer-funded website to promote the Tea Pary-Superbowl of Freedom, a partisan political rally to defeat health care reform. The Center for Responsibility and Ethics in Washington (CREW), a non-profit political watchdog, alleges that Bachmann violated a House rule against using official websites for "grassroots lobbying or [to] solicit support for a Member's position." She literally told her supporters to come to Washington on Nov 5 and tell their representatives to vote against health reform. That's textbook grassroots lobbying and a clear no-no for a taxpayer-funded website.
Speaking of pesky rules and regulations, Rep. Bart Stupak's (D-MI) C Street residence is no-longer tax exempt. Stupak, who became famous for inserting a radical and far-reaching abortion funding ban into the House health reform bill, lives with several other lawmakers at a house on C Street. The house is owned by a secretive fundamentalist sect known as The Family. For years, C Street avoided paying property taxes by claiming to be a church. All that's over now. Ed Brayton of the Michigan Messenger reports that the IRS has finally figured out that C Street is a dorm.
Alex Koppelman reports in Salon that Stupak is reiterating his threat to kill health care reform if his language is stripped from the final bill:
"They're not going to take it out," Stupak said of Senate Democrats during an appearance on "Fox and Friends" Tuesday morning. "If they do, healthcare will not move forward ... At least 10 to 15 to 20 of us will not vote for it."
The fight over abortion coverage in a reformed health care system is far from over. It's unlikely that Reid wrote Stupak language into his version of the bill, and it's equally unlikely that anti-choicers have the 60 votes to add it back in as an amendment. (Contrary to popular belief, the Senate is much more pro-choice than the House.) Anti-choice Dems Sens. Ben Nelson and Bob Casey seem to be walking back from their earlier threats to vote against a bill without Stupak language.
Harry Reid announced that Democrats would meet today to preview the Senate's version of the health care bill. The first procedural vote on the Senate bill could come before Thanksgiving.
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.
By Zach Carter, Media Consortium Blogger
By proposing financial reforms that won't curb Wall Street excess, U.S. policymakers have offered an unacceptably weak response to our enormous financial crisis. If voters don't demand that their elected representatives help workers and consumers instead of simply boosting corporate profits, the economic downturn will last for several more years and leave the economy vulnerable to another bank-induced meltdown.
The banks have unbelievable lobbying clout. In an interview with Cenk Uyger of The Young Turks, Heather Booth, executive director of Americans for Financial Reform, describes how one-sided the Wall Street reform fight has been. Despite broad public support for a fundamental financial overhaul, going up against the bank lobby is, as Booth describes, "a David and Goliath fight." It's basically Americans for Financial Reform against every major corporation in the U.S.
Booth notes that the Chamber of Commerce has vowed to spend $100 million on a campaign to defend the "so-called free enterprise system"--you know, the "free market"--in which corporate lobbyists spend millions of dollars to write the rules of the economic game. Just seven financial lobby groups have spent a massive $147 million peddling influence over the past two years.
In fact, as Janine Wedel observes for Salon, the U.S. economic system is starting to look an awful lot like the clannish systems of government that looted Eastern European countries in the early 1990s. Today, the public good takes a backseat to the narrow interests of powerful corporations.
With the Obama administration working with advisers from Citigroup and Goldman Sachs, we're not just watching Wall Street write its own regulations. We're watching the financial sector re-write the official role of the government in the economy. In this new role, the government's top priority is securing profits for corporate America.
"The intertwined coterie of financial and policy deciders in the United States is creating not only the financial architecture of the future, backed by the power and billions of the state, but, more generally, new relationships between the bureaucracy and the market," Wedel writes.
GRITtv's Laura Flanders echoes this theme in an interview with John Perkins, author of Confessions of an Economic Hit Man, and journalist Russ Baker. Lobbyists have so thoroughly hijacked the U.S. economy, Perkins argues, that the nation's government now resembles those of Latin American nations he worked with in the 1980s and 1990s.
"I don't think the U.S. president has much power these days, to be honest with you. . . . It's the big corporate executives who call the shots today, and let's face it, they financed Obama's campaign," Perkins says.
The very efforts the government deployed to save the financial system are being perverted to create another disaster. In a five-part interview with Paul Jay of The Real News, Jane D'Arista, an influential economist and author of The Evolution of U.S. Finance, explains how Wall Street destroyed itself over the past decade. By borrowing massive amounts of money, Wall Street was able to place bigger bets in the capital markets casino, resulting in huge profits when those bets paid off. But when the bets backfired, the losses were just as massive. Companies couldn't pay them off, so the government stepped in to support them.
One of those support mechanisms came from the Federal Reserve, which began making incredibly cheap loans to firms that engaged predominantly in speculative trading. The Fed used to lend exclusively to commercial banks, which used the money to make loans that helped grow the real economy. But now those loans are being used to support risky securities trading, so we're seeing big profits in the financial sector, without much help for workers and consumers. This is a major long-term problem--if the economy can't keep pace with the Wall Street casino, those speculative trades are going to backfire and we'll be right back to the chaos of September 2008, only with an even weaker economy.
All hope is not lost. As Perkins and Baker emphasize in their interview with Flanders, citizens have to demand corporate accountability and a government that actually serves the public good. For much of the past decade in Latin America, governments have been elected that stood up to major corporations and demanded that they stop pillaging their nation's resources at the people's expense.
In addition to demanding much stronger reforms for the financial sector, we have to demand that the government respond seriously to problems facing workers. With the unemployment rate at 10.2% and expected to go still higher, we need jobs. As Steve Benen notes for The Washington Monthly, Obama's economic stimulus package helped stave off total economic devastation. What we need now is another stimulus to get people back to work, not just slow the pace of job losses.
"A bold, ambitious jobs bill can make a huge difference--the stimulus got us out of the ditch, a new effort can get us going in the right direction again," Benen writes.
And the only argument against this plan is that we "can't afford it." That is--the government's fiscal deficit is too high, and we just can't spend money to help people in real economic trouble.
But as Christopher Hayes writes for The Nation, the deficit excuse is pretty pathetic. Economic stimulus bolsters economic growth, thus improving tax returns for the government in the future. And any spending on any project can be taken out of the budget from other measures. Hayes notes that our massive military spending is almost never included in discussions about "fiscal responsibility." If we were really worried about how much it would cost to fix the economy, we could stop spending so much money killing people.
"Fiscal conservatism and deficit concern is nearly always code speak in Washington for something else," Hayes writes. "Most often, when someone in Washington says they're concerned about the deficit, what they're really saying is, 'I would like to make sure we have a government that focuses maximally on blowing people up.'"
The government has to start saying 'no' to corporate America. Corporate profits are not the same thing as a strong economy. We need to demand an economic policy that answers to workers, not just bank balance sheets.
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.
By Lindsay Beyerstein, Media Consortium Blogger
A clique of anti-choice Democrats in Congress joined forces with Republicans to write abortion access out of the House's health care reform bill last Saturday. Rep. Bart Stupak (D-MI) wants to force women to choose between affordable health insurance and abortion coverage, even if they pay for abortion coverage with their own money.
Pro-choice Democrats and women's health activists are up in arms over the eleventh hour deal. Ellie Smeal of Ms. Magazine denounces the Stupak amendment as a betrayal of women:
Millions of poor and middle-class women would be denied abortion coverage and millions more would lose the coverage they already have, since 85 percent of private plans now cover abortion. Far from being abortion-neutral, the Stupak amendment is a giant step backward for women. It's unacceptable. In the compromise to get the bill passed, women and their health-care rights were thrown under the bus.
Jacobson calls the Stupak language a "monumental setback." If an insurance plan accepts customers who take government subsidies, then nobody on that plan could have abortion coverage--not even those who were paying their whole premium out of pocket. In effect, the Stupak amendment would be "a total ban on public and private money for abortion coverage," Jacobson said.
In TAPPED, Michelle Goldberg accuses the Democrats of "leaving women behind" in their rush to pass health care reform at any cost. Goldberg warns that if the amendment becomes law, Democrats will have handed the anti-abortion lobby its biggest victory since the 2003 Partial Birth Abortion Act.
In the Nation, Eyal Press argues that the Stupak amendment would be an especially cruel blow to poor women:
If this highly regressive amendment makes its way into the legislation that Barack Obama eventually signs, millions of less affluent women who obtain access to affordable health insurance will thus join the ranks of low-income women on Medicaid, most of whom live in states that don't cover abortion procedures. The two-tiered system that dictates who in America has "choice" (more privileged women do, less affluent women do not) will be further entrenched.
The House bill is not yet the law of the land. There is still time to strip the Stupak language out in conference (the merging process whereby the House bill is combined with whatever comes out of the Senate).
But will it actually get stripped out in the senate? Sen. Ben Nelson (D-NE) announced that "If it isn't clear that government money is not to be used to fund abortions, I won't vote for it."
On a conference call yesterday, Sen. Arlen Specter (D-PA) told The Pulse that he was optimistic that a compromise could be worked out. "Ben Nelson said he wasn't going to support a bill if it isn't clear that government money won't be used to fund abortions," Specter said, "Well, we can make it clear that if someone wants to buy abortion coverage with her own money, she can do it."
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.
By Zach Carter, Media Consortium Blogger
On Friday, we learned that the U.S. unemployment rate officially broke 10% for the first time since the early Reagan years. This is about as bad as it gets for a modern, developed economy. No economic force takes a heavier toll on a society than rampant joblessness, and few personal setbacks take a deeper psychological toll than being out of a job for months on end. If Congress and President Obama don't do something to create jobs fast, both are going to pay a hefty political price when next year's mid-term elections roll around.
So how bad is it? In October, the economy shed 190,000 jobs and the unemployment rate jumped from 9.8% to 10.2%. That percentage is the most optimistic reading of the labor market in Friday's report. If you take people who want full-time jobs but are settling for part-time work, then add those who have simply given up on finding a job, the rate is a massive 17.5%.
The problem is not that either Obama or Congress have failed to act on the problem, but rather that they have not done enough. When Congress was moving on Obama's $787 billion economic stimulus package back in February, we were shedding upwards of 700,000 jobs a month. So the stimulus package has worked--it's probably helped keep unemployment from jumping to 12% or 13%. But this is cold comfort to the nation's 15.7 million unemployed, 5.6 million of whom have been out of a job for more than six months.
As Robert Reich notes for Salon, Obama's economic advisers dramatically underestimated how bad things would get when they crafted the stimulus package. As a result, the package was too small and unemployment has remained high. Obama needs to go back to Congress and demand more economic relief funding. Republicans will continue to whine about government spending to excuse their obstructionism, of course, and conservative Democrats will probably start sweating, too--Sen. Ben Nelson (D-NE) helped cut back the original stimulus bill in February to help boost his "centrist" credentials. This of course had nothing to do with economics or policy. Government spending is what saves the economy in a recession. In a downturn as severe as this one, it takes a lot of spending to turn things around.
But as Reich notes, Nelson and his cohorts will have a lot more to worry about in the 2010 elections if the economy doesn't actually improve over the next year. And few economists think it will. The Congressional Budget Office, which is run by a conservative economist named Douglas Elmendorf, projects an average unemployment rate of over 10% in 2010. That's worse than this year. Democrats from swing districts need to support economic relief packages. Continued economic malaise will severely hurt them at the polls.
Congress finally took some action on joblessness on Thursday, voting to extend unemployment benefits for an additional 14 weeks. If we want the economy to recover, we need people to spend money, but if people aren't working, they don't have any money to spend. So the government cuts people checks to help them get by and stimulate a demand for goods and services. Even most conservative economists thinks this is a good idea.
But as Kevin Drum notes for Mother Jones, the soundness of the policy did nothing to prevent Republicans from fighting the effort to extend benefits tooth-and-nail. The bill had to overcome three--that's right, three--filibusters in the Senate from Republicans, who held up the bill for weeks for no apparent reason. In a blog post for The Washington Monthly, Steve Benen explains the economic cost of this obstructionism: In the weeks of delay, 200,000 people looking for work stopped receiving benefits.
But extending unemployment benefits will not solve our economic woes. The total program is just $2.4 billion, a drop in the bucket compared to the trillions of dollars the government put up to salvage Wall Street. $2.4 billion is not enough to reverse the unemployment trend. Cutting the checks certainly helps, but as Matthew Rothschild emphasizes for The Progressive, we need an economic policy that actually puts people back to work. We've known for months that the stimulus was too small and watched the labor market continue to deteriorate. We need more than tweaks at the economic margins, we need a robust job creation plan.
As Stephen Franklin notes for Working In These Times, we already know that the recession has created a significant jump in the nation's poverty rate. According to official government statistics, the rate climbed from 12.5% to 13.2% in 2008, the largest increase since 1991. But the National Academy of Science thinks the government statistics are misleading, as they account for rising costs associated with medical care, transportation, child care and different regional living standards, as Franklin notes. Taking these factors into account, the National Academy of Sciences calculates the actual poverty rate to be 15.8%. That's an additional 7 million people living in poverty, for a total of over 47 million. That's more than the entire population of the New York, Los Angeles, Chicago, and Philadelphia metropolitan areas combined. What's worse, we don't have poverty statistics for this year, when the most severe economic damage was been dealt.
Workers are facing tough economic prospects around the world. Writing for The Nation, Kristina Rizga details Latvia's economic turmoil. Just like the US, overexcited bankers in Latvia inflated a massive real estate bubble that took down the entire economy when it burst. But with the bubble burst, much of the country is now out of a job and stuck with a mortgage worth far less than what they paid for it. It's almost exactly the same story we've seen at home.
No domestic economic problem is more pressing than our epic levels of unemployment. We need another round of stimulus to get people working again. If not, we'll see the same public unrest here as in Eastern Europe.
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.
By Raquel Brown, Media Consortium Blogger
Senate Democrats in the Environment and Public Works Committee (EPW) finally squelched Republican boycotts and passed a version of the climate bill yesterday morning. Last week, Republican Senators refused to show up to committee hearings in an attempt to stall the bill. Brian Beutler of Talking Points Memo notes that EPW has now set "the stage for other panels to amend the legislation."
by Zach Carter, Media Consortium Blogger
Last week, President Barack Obama released key legislation designed to fight the banking industry's too-big-to-fail problem. But Obama's plan doesn't actually address too-big-to-fail at all. It reinforces a broken system in which economically dangerous companies are bailed out whenever they drive themselves to the brink of failure.
If we want the economy to support all people, we have to break up the big banks and start treating the creation of good jobs as an economic priority on par with Wall Street rescues.
The editors of The Nation break the political debate over banking into three camps:
The practical policy is to impose structural limits on what activities banks can participate in and how big they can get. Just look at the list of high-profile supporters: former Federal Reserve Chairman Paul Volcker, former Citigroup Chairman John Reed, Bank of England Governor Mervyn King. I don't remember seeing any of those guys at the Iraq War protests.
Many of the regulatory blind spots that brought down the economy were obvious to some policymakers for years. Back in 1994, Sen. Byron Dorgan (D-ND) wrote an article for The Washington Monthly warning that derivatives trading was putting the economy in grave danger. Commodities Futures Trading Commission Chair Brooksley Born tried to take action on these derivatives, but was overruled by other regulators, including then-Fed Chair Alan Greenspan, and then-Treasury Secretary Lawrence Summers, now the top economic adviser to President Obama. Summers and Greenspan even convinced Congress to pass a law banning the regulation of key derivatives, including credit default swaps, which ultimately brought down insurance giant AIG.
Fifteen years after Dorgan's article first ran, The Washington Monthly is featuring it again, along with a recent speech by Dorgan that details massive failures in Wall Street and Washington.
"We had regulators come to town in recent years and willfully boasted that they wanted to be blind as regulators," Dorgan says.
There are good elements of Obama's plan to deal with too-big-to-fail. It gives policymakers the option of putting a too-big-to-fail institution through a special bankruptcy process administered by the executive branch, thus avoiding the problems created in bankruptcy court when Lehman Brothers failed. But the bad part is really bad: Officials would also have the option to provide unlimited bailouts to Big Finance via loans, guarantees and even asset purchases.
As Mike Lillis notes for The Washington Independent, some responsible Democrats like Rep. Brad Sherman (D-CA) have been objecting to this aspect of the legislation for months. Sherman, in fact, calls it "TARP on steroids," noting that the bank bailout at least came with some meager oversight and a limit on the program's actual size.
The bank lobby is spending money like mad to maintain their stranglehold on the economy. Neither Congress or the administration will change course without intense public pressure. So it was very reassuring last week to see thousands of people protesting the annual meeting of top bank lobby group, the American Bankers Association. David Moberg chronicles the protest in a blog post for Working In These Times that covers speeches by both key union leaders and ordinary people facing foreclosure after watching their tax dollars go to the very bankers who wrecked the economy.
"There was broad agreement on anger at the banks for providing so little, if any, public benefit for the massive bail-out, and for so quickly returning to the greed and abuse that precipitated the crisis," Moberg writes.
Laura Flanders covers the protests for GRITtv, including video of protesters chanting "Bust up big banks!" In a roundtable discussion with Christina Clausen of the United Food & Commercial Workers Union, George Goehl of National People's Action and Rob Robertson of the Right To The City Alliance, Rolling Stone journalist Matt Taibbi explains the overriding impotence of the regulations Congress is about to approve. Regulators will not be able to crack down on abusive derivatives, a full 8,000 of 8,200 banks will be exempt from Consumer Financial Protection Agency oversight, while the same agencies that screwed up heading into this crisis will be charged with preventing the next one.
"They've had sweeping powers to do whatever they wanted," Taibbi says. "They've had this regulatory power all along."
What we need are good jobs, and lots of them. Obama's economic stimulus package has made tangible economic progress. It's saved hundreds of thousands of jobs, and is clearly responsible for the turnaround in gross domestic product (GDP) we saw in the third quarter. But a full 17% of the workforce remains unable to find full-time work, as Julianne Malveux explains for The Progressive.
When Wall Street crashed in 1929 and unleashed the Great Depression, the government eventually stepped in as an employer-of-last-resort. The Works Progress Administration (WPA) and Civilian Conservation Corps (CCC). built schools, parks, roads and bridges which still serve our communities today. Both the WPA and the CCC employed literally millions of people--in the 1930s. It's a model that could work very well today.
As the current recession makes clear, ending too-big-to-fail and guaranteeing a good job for everyone in our society who wants one are the two most critical structural reforms our economy needs. Don't let lawmakers forget it.
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.
By Raquel Brown, Media Consortium Blogger
This week the Senate Environment and Public Works Committee held three hearings on the Kerry-Boxer clean energy bill and, as David Roberts reports for Grist, Republican Senators had an "adolescent tantrum" about the cost of emission reductions. The Environmental Protection Agency (EPA), Congressional Budget Office (CBO), Energy Information Administration (EIA) and other organizations have extensively debunked this line of debate.
By Lindsay Beyerstein, Media Consortium Blogger
Progressives rejoiced when Senate Majority Leader Harry Reid announced this week that the final Senate health care bill would include a public option. The announcement was a major victory for left-wing Democrats.
Better yet, it would be a public option without a trigger. Earlier proposals called for a triggered public option which would only take effect if private insurers failed to bring down costs on their own. Under the opt-out compromise, the public option would come on line automatically (albeit not until 2013), but states would later have the option of quitting.
The jubilation was short-lived. Alex Koppelman of Salon explains:
Progressives didn't even get 24 hours to celebrate the victory they won in getting Senate Majority Leader Harry Reid to include a version of the public option in his health care reform bill. The celebration was cut off Tuesday afternoon with the news that Sen. Joe Lieberman, I-Conn., will vote with Senate Republicans to filibuster the legislation.
Health care is the most important domestic policy initiative of the Obama administration. Would Joe Lieberman really torpedo reform? The Senate leadership thinks Reid is bluffing, according to Steve Benen at the Washington Monthly.
I understand the argument. Lieberman loves attention and power. By threatening to join the Republican filibuster, he gets both--Democrats have to scramble to make him happy, since there's no margin for error in putting together 60 votes. Lieberman gets to feel very important for the next several weeks by making this threat less than 24 hours after Harry Reid stated his intentions, but that doesn't necessarily mean he wants to be known forever as The Senator Who Killed Health Care Reform.I find it very easy to believe, however, that Lieberman is capable of doing just that. He left himself some wiggle room, but not when it comes to the public option--he's against it, no matter what, even with all of the compromises thrown in.
Senator Olympia Snowe (R-Maine) says that she will side with the Republicans to filibuster the bill "if she has to," as Evan McMorris-Santoro reports for TPM. Snowe was the only Republican to vote for the Finance Committee's health care bill.
Reid must walk a fine line. The administration really can't afford to alienate organized labor before the 2012 elections. Newly elected AFL-CIO President Ricahrd Trumka continues to push for his three core demands for health care reform: a public option, a mechanism to make employers pay their fair share, and no taxes on health care benefits. Last week, AFSCME President Gerald McEntee said that his union would oppose legislation that taxed benefits, but Trumka hasn't gone that far, as David Moberg reports at Working In These Times.
Finally, in other health-related news, Occupational Safety and Health Administration (OSHA), the division of the Labor Department that oversees workplace safety, has issued a sweeping new report condemning Nevada's state-level OSHA program. As I report for Working in These Times, the investigators found that NOSHA inspectors were being pressured by their superiors to write up employers on lesser charges, even when their repeat offenses killed workers.
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.
· Blanche Lincoln's website supports public option (desmoinesdem)
· Big Coal's PR Spending Spree (desmoinesdem)
· IA-03: Former college wrestling coach to challenge Boswell (desmoinesdem)
· Tea Baggers Target Gore... (Cliff Schecter)
· Stimulus Watch (Jerome Armstrong)
· CREW seeks ethics inquiry of Bachmann (desmoinesdem)
· Did IRC help? (MN Campaign Report)
· 5 Worst cities for urban youth (desmoinesdem)
· "The Bishops' Huge Financial Stake in Stupak-Pitts" (desmoinesdem)
· Conservative group wants FEC to override state laws on robocalls (desmoinesdem)
· URGENT: Call these House Ds Saturday to oppose Stupak amendment (desmoinesdem)
· WI-08: Wingnut plans to run as "conservative independent" (desmoinesdem)
