Imagine if a Tea Party backer by some miracle got to teach on a college campus, and began describing ways to, oh, I don't know, keep opposing politicians from conducting business, hack into their computers and destroy data, and make their staffs feel threatened. How long would that class last, and how long would it be before it became a national news story? Well, Publius at Andrew Breitbart's BigGovernment.com reports that ” the University of Missouri-St. Louis (UMSL) and the University of Missouri-Kansas City (UMKC) sponsored two college courses: Introduction to Labor Studies and Labor Politics and Society, to be taught simultaneously through a video conference between to two campuses.” Publius asserts, with video proof, that the courses really really are “How-to College Course(s) in Violent Union Tactics.” The two must-see BigGov posts are here and here . Direct links to the videos and brief descriptions follow the jump: Part I ( BigGov link ): The Professors are Judy Ancel, Director of Labor Studies at UMKC and
Continue reading …Click here to view this media Rick Santorum voted with the rest of the GOP to create the Medicare prescription drug benefit, which as Chris Wallace pointed out, was not paid for, but now he thinks the Republicans in Congress should do some more hostage taking and refuse to raise the debt ceiling unless the Democrats agree to defund the Affordable Care Act, or as he calls it, Obamacare, which would, by the way, make the deficit worse as well. So never mind that he helped blow a huge whole in the budget when he was in the Senate, now he’s going to pretend he cares about running up the deficit. Republican, thy name is hypocrisy. Think Progress has more on Santorum and his hostage taking — Rick Santorum: I Would ‘Absolutely’ Let The Country Default Over Defunding The Health Care Law . WALLACE: OK. So, you say that the GOP should refuse to raise the debt limit until the other side agrees to take all the funding out of Obamacare, which is roughly $105 billion that is tucked inside Obamacare. Given the fact — you know as a political realist — the president would never accept that, are you willing to let the country go into default? SANTORUM: Well, is the president willing to let this country go into default, to support a program that has been found unconstitutional by a couple of courts — WALLACE: And has been found constitutional by a couple of courts. SANTORUM: Again, but has been found unconstitutional by a couple of courts, has also — has widely unpopular — 60 percent negative across the country, is already increasing the cost of health care, is already causing job losses because of the complexity and taxes that are being put into place. This is a program that if the president wants to defend it, he should stand up and say the 2012 election is about Obamacare. We’ll put it this on hold and we’ll make it a referendum on Obama. WALLACE: OK. But that’s one thing, the 2012 election. You’re saying you’d let the country go into default on this issue? SANTORUM: No, I think the president would let this go into default on this issue. WALLACE: But you would make that a condition, you’d make that the price? SANTORUM: Absolutely. WALLACE: Now, didn’t you contribute to the deficit problem when you were in Congress? Back in 2003, you voted to create a new prescription drug, Medicare prescription drug benefit, but you didn’t provide any funding. And according to most estimates, it’s adding $60 billion a year to the deficit. SANTORUM: Yes, I would say that that was a mistake. That one of the — we did two things that were wrong in that bill. Number one, we made it universal. In other words, we had a problem that was about 15 percent of seniors didn’t have prescription drugs. And we — and the president compromised with the Democrats, President Bush, to provide a universal benefit. I was against that. I spoke against it. I worked against it. But we lost. And so, now, we have — we have a situation — WALLACE: And you voted for it. SANTORUM: I voted for it for a lot of reasons beyond the Medicare prescription drugs, for example, Medicare Advantage. WALLACE: OK. But the point is you created a vast new entitlement without paying for it. SANTORUM: I agree. And I think we should have — the second thing, we should have paid for it. Again, that was not an option on the table at the time that we were voting for it. We did have a program that was substantially less money than what the Democrats were proposing and we did have substantial reforms of Medicare as well as health savings accounts, which was a reform in the private sector also in this bill. So, I said at the time, it was a 51/49 vote. In retrospect, it was probably 51/49 the other way.
Continue reading …Perhaps you hadn't noticed, but in late August 2010 Ben Bernanke took on complete responsibility for everything — especially everything mediocre or bad — that occurs in the economy. I know this because on August 27 and 28 (covered here and here ), the Associated Press issued three reports essentially telling readers that it was up to Ben to save us. There wasn't anything Barack Obama, Tim Geithner, Nancy Pelosi, Harry Reid, or then-present Larry Summers could possibly say or do to improve the economic situation, described at the time as “appears to be stalling” in one of those AP items. Out of this came what has come to be known as “QE2″ (the second round of “quantitative easing”), otherwise known as “electronically printing money to buy U.S. debt because possibly no one else will.” Well, it hasn't worked out so well, according to the New York Times, whose Binyamin Appelbaus reported the “surprisingly” pathetic results on Sunday: Stimulus by Fed Is Disappointing, Economists Say
Continue reading …Bonus payouts shrank by 8% over last 12 months at the same time as permanent 7% rise in basic salaries in Square Mile Workers in the City of London who have seen contentious bonus payouts shrink by 8% over the last 12 months have more than made up for their loss through a permanent 7% rise in basic salaries, according to a study published today. Bonuses paid to City workers fell from £7.3bn to £6.7bn for the year to April, the Centre for Economics and Business Research (CEBR) says, but these purported performance-linked payouts remain a step above levels recorded in 2009, when the worst banking crisis since the 1930s saw the City’s bonus pool dip to £5.3bn. However, more than offsetting the impact of shrinking City bonuses, basic salaries in the Square Mile – which still make up the lion’s share of pay deals for most City workers – jumped 7%, according to CEBR’s analysis of official data from the Office for National Statistics. Lord Oakeshott, the Liberal Democrat peer who resigned as a party spokesman in protest at what he saw as the coalition’s failure to curb banking industry excesses, said: “Real incomes are now being seriously squeezed in the rest of Britain but City pay just sails merrily on.” Permanent salary rises for City workers were well ahead of pay settlements awarded to the rest of the UK’s employees. They ensure City workers are more than equipped to weather the soaring cost of living brought about by global demand for oil and food. Average wage settlements were up just over 2% for the UK as a whole over the same period, while the retail price index measure of inflation – commonly used as a benchmark for wage negotiations – stood at 5.3% for March. Revelations about spiralling City pay come just two months after an uneasy compromise, known as the Project Merlin deal, was struck between the government and Britain’s big five lenders – Barclays, Lloyds Banking Group, Royal Bank of Scotland, HSBC and Santander – over small business lending and bank pay restraint. It was instantly branded “toothless” by the shadow chancellor, Ed Balls, and prompted Oakeshott to resign. Last month new disclosure rules imposed on banks forced Barclays to admit that five top managers had shared annual payouts of £110m despite the group failing to hit its financial targets. Weeks later it emerged that the new boss of the taxpayer-owned Lloyds Banking Group, Antonio Horta-Osorio, had negotiated a package potentially worth up to £13.4m after receiving a £4.6m “golden hello” on joining. Scott Corfe, CEBR economist and co-author of the research, said: “City workers are not earning less – their earnings are merely becoming less bonus-driven as basic pay continues to grow much faster than other parts of the economy.” TUC senior policy officer Janet Williamson said: “Ordinary people are paying a heavy price for the economic problems the banks helped cause. “Essential services are being cut, workers are seeing a real-term cut in wages as prices rise higher and faster than their salaries and many are at risk of losing their jobs. “Despite all this hardship it’s very quickly gone back to business as usual in the City.” Executive pay and bonuses Banking Financial crisis Global recession Financial sector Simon Bowers guardian.co.uk
Continue reading …Are you getting sick and tired of hiring GOP pundits complain that if we tax the rich, they’ll pack up their bags and move out of the country? A millionaire tax was implemented in New Jersey in 2004 and something funny happened? The rich didn’t all migrate out of the state. From Think Progress: In 2010, New Jersey Gov. Chris Christie (R) vetoed an extension of the state’s “millionaire’s tax,” citing “failed policies of the past.” The move effectively raised taxes on senior citizens while cutting them for the rich. And conservatives have fought similar millionaire taxes in states across the country, arguing that such a tax would stymie job growth and force millionaires to flee to other states with friendlier tax policies. But a new study based in Christie’s backyard found that New Jersey’s millionaire’s tax, instituted in 2004, had a negligible effect on its millionaire population . In fact, New Jersey’s millionaire population actually grew over the period of the study, even through the recession: The study found that the overall population of millionaires increased during the tax period. Some millionaires moved out, of course. But they were more than offset by the creation of new millionaires. They found that the rate of out-migration among millionaires was in line with and [sic] rate of out-migration of submillionaires. The tax rate, they concluded, had no measurable impact. “This suggests that the policy effect is close to zero,” the study says. The New Jersey study isn’t the first to find that higher taxes on millionaires have little, if any, impact on migration. So much for that argument. I think it’s good news also that the rich are screaming from the AEI pulpit like Arthur Brooks crying that it’s sooo unfair to tax the rich. You can tell so mething’s happening in the economic policy debate when you start reading more things like AEI’s Arthur Brooks explaining that it would simply be unfair to raise taxes on the rich. Harvard economics professor and former Council of Economics Advisor chairman Greg Mankiw has said the same thing. And of course Representative Paul Ryan is both a fan of Brooks and a fan of the works of Ayn Rand. Which is just to say that we used to have a debate in which the left said redistributive taxation might be a good idea and then the right replied that it might sound good, but actually the consequences would be bad. Lower taxes on the rich would lead to more growth and faster increase in incomes. Now that idea seems to be so unsupportable that the talking point is switched. It’s not that higher taxes on our Galtian Overlords would backfire and make us worse off. It’s just that it would be immoral of us to ask them to pay more taxes even if doing so would, in fact, improve overall human welfare. All polling has been showing that the American population would rather tax the rich than any other action to try and fix the country’s economy. Are they starting to run scared just a little? They usually just strike back, but it’s safe to say that people aren’t buying their shtick like they used to. Still, it won’t stop them from pumping up the volume with new Ayn Rand movies. Even if they suck. Where did Rep. Paul Ryan get his inspiration from when he wrote up his junk science budget that guts Medicare and Medicaid? Look no further than Ayn Rand. How much damage will this lunatic keep doing to our country? Her ideas are insane, but keep finding their way into our political system. Here’s The Truth About GOP Hero Ayn Rand . Howie has a great post up about Ryan and Rand: The Inspiration For Paul Ryan’s Profoundly And Explicitly Anti-Christian Budget. Read it and weep because we’re all parasites to the Galtian upper crust. The philosophy, such as it was, which Rand laid out in her novels and essays was a frightful concoction of hyper-egotism, power-worship and anarcho-capitalism. She opposed all forms of welfare, unemployment insurance, support for the poor and middle-class, regulation of industry and government provision for roads or other infrastructure . She also insisted that law enforcement, defense and the courts were the only appropriate arenas for government, and that all taxation should be purely voluntary. Her view of economics starkly divided the world into a contest between “moochers” and “producers,” with the small group making up the latter generally composed of the spectacularly wealthy, the successful, and the titans of industry. The “moochers” were more or less everyone else, leading TNR’s Jonathan Chait to describe Rand’s thinking as a kind of inverted Marxism. Marx considered wealth creation to result solely from the labor of the masses, and viewed the owners of capital and the economic elite to be parasites feeding off that labor. Rand simply reversed that value judgment, applying the role of “parasite” to everyday working people instead. On the level of personal behavior, the heroes in Rand’s novels commit borderline rape, blow up buildings, and dynamite oil fields — actions which Rand portrays as admirable and virtuous fulfillments of the characters’ personal will and desires. Her early diaries gush with admiration for William Hickman, a serial killer who raped and murdered a young girl. Hickman showed no understanding of “the necessity, meaning or importance of other people,” a trait Rand apparently found quite admirable. For good measure, Rand dismissed the feminist movement as “false” and “phony,” denigrated both Arabs and Native Americans as “savages” (going so far as to say the latter had no rights and that Europeans were right to take North American lands by force) and expressed horror that taxpayer money was being spent on government programs aimed at educating “subnormal children” and helping the handicapped. Needless to say, when Rand told Mike Wallace in 1953 that altruism was evil, that selfishness is a virtue, and that anyone who succumbs to weakness or frailty is unworthy of love, she meant it. It’s anti-American and anti-human being in a nutshell. That’s what Rep. Paul Ryan is trying to sell us.
Continue reading …I'm regularly amazed by the economic ignorance of today's television commentators. Consider MSNBC's Chris Matthews who on Monday's “Hardball” actually said, “Nobody thinks this country can drill its way out of high gas prices” (video follows with transcript and commentary): CHRIS MATTHEWS, HOST: Back to HARDBALL. Now to the “Sideshow.” First, drill baby drill, it’s back. Didn’t take long. Here’s Tim Paw, Tim Pawlenty, this morning. (BEGIN AUDIO CLIP) TIM PAWLENTY (R), FORMER MINNESOTA GOVERNOR: This is a president who has sat on his hands as it relates to drilling. You know, we have got a country that’s got some enormous energy assets that are not being exploited or leveraged to the benefit of our country and to our people. (END AUDIO CLIP) MATTHEWS: Well, nobody thinks this country can drill its way out of high gas prices. Nobody? You mean nobody in this country understands the law of supply and demand and that if we were actually to increase the production of oil by drilling for more of our own that would necessarily bring down oil and gas prices? Show of hands: who thinks America drilling for more oil would bring down oil and gas prices? And this guy has not one but two nationally broadcast television programs. Could you possibly take seriously anything said by a man so obviously ignorant about something we all learned in grammar school? Simple lapses in reason like this make it even more preposterous when Matthews criticizes the intellectual capacity of folks like Sarah Palin and Michele Bachmann who I guarantee understand that increased American drilling would immediately cause energy speculators to sell their long positions on the various commodities exchanges around the world and likely go short. But the high and mighty Mr. Matthews clearly doesn't understand such things. Did I mention he's got two nationally broadcast television programs?
Continue reading …enlarge Ever since Social Security became the law over 75 years ago, there have been conservatives who wanted to kill it, finding the very notion that elderly or disabled people should retain any dignity or independence after their productive years have passed anathema. If you’re no longer “useful” in their particular definition of the word, then you’ve got a lot of damned gall even thinking you should be able to stay out of poverty. What the hell right does Grandma have to a flu shot and a living allowance? There are a lot of ways that money could be better spent, so far as they are concerned. It could be used to pay down the debt, or it could be invested on Wall Street. All Grandma does is spend it on rent and groceries and the like. She just pisses it away on avoiding poverty , the parasite. As best I can tell — I sometimes have trouble translating “bloodless goon” into ordinary, American English — that is at least part of Robert Samuelson’s position in his latest post at /Real Clear Politics/. That, and making sure that the deficit problem that Bush and the GOP Congress created gets solved by making the people who have realized no benefit from the Bush tax cuts and can least afford it pick up the tab: Suppose we increased the federal gasoline tax by 25 cents a gallon, from 18.4 cents to 43.4 cents. That would raise $291 billion over the decade from 2012 to 2021, estimates the CBO. Or we could advance the ages for early and full Social Security benefits; one suggestion is to raise them (now 62 and 66) by two months a year until reaching predetermined targets (say, 64 and 70). The CBO reckons the decade’s savings at about $264 billion. How about slowly moving Medicare’s eligibility age from 65 to 67. The savings: $125 billion. Are we finished? Nowhere near. At most, these crowd pleasers would make noticeable dents. Recall that the deficits total almost $10 trillion over the next decade under President Obama’s original 2012 budget. That’s the point: even discounting the effects of the deep recession, prospective deficits are so large that they can’t be cured by tinkering. We should be asking basic questions: — How big a government do we want? For four decades, federal spending has averaged 21 percent of gross domestic product. An aging population and high health costs mean that average spending, as a share of GDP, will rise by a third or more in the next 10 to 15 years if today’s programs simply continue. — Who deserves government subsidies and how much? About 55 percent of spending goes to individuals, including the elderly, veterans, farmers, students, the disabled and the poor. — How much, if at all, should social spending be allowed to squeeze national defense? — If taxes rise, how much and on whom? What taxes would least hurt economic growth? Perhaps Samuelson calls an increase in the gas tax a “crowd pleaser” because it would hit those at the bottom of the economic ladder the hardest, since simple economics dictates that the lower the rung one occupies the less likely they are to drive a newer, more fuel-efficient car — and cashiers and construction workers don’t have a telecommute option to exercise. But let’s not get distracted with the gas tax issue, because what he really wants to do is eviscerate the social safety net. He is being disingenuous at best and deliberately dishonest at worst when he says “the deficits total almost $10 trillion over the next decade under President Obama’s original 2012 budget. That’s the point: even discounting the effects of the deep recession, prospective deficits are so large that they can’t be cured by tinkering.” That same CBO that he touts in his very first ‘graph also says that if nothing is done , other than simply letting the Bush tax cuts expire and tax rates return to the Clinton-era levels, the deficit disappears. Now let’s answer some of those questions that he says no one is asking. When he asks how big we want our government to be, he is starting from a faulty premise. It isn’t the size of government that matters, it is the quality. When he asserts that our “aging population and high health costs mean that average spending, as a share of GDP, will rise by a third or more in the next 10 to 15 years if today’s programs simply continue.” What he is surely smart enough to know, but is betting that his target audience isn’t, is that he just made the perfect argument for single-payer healthcare, most easily achieved by expanding Medicare to cover everyone and then allowing Medicare to negotiate the price of medications and assignment schedules. Healthcare is the problem, and we are decades behind the rest of the developed world in coming to that realization and moving away from the ridiculous “market based solutions” that conservatives are so fond of. Then he asks just who, exactly, deserves to be subsidized by the government and how much subsidy they deserve. I answer that question with “children and the elderly” and I believe that human beings deserve more investment than the “defense” budget that currently eats up more than half of every dollar the government spends, either killing or preparing to kill other human beings. When he asserts that currently, 55 cents of every dollar the government spends “goes to individuals” he is deliberately and dishonestly fudging his numbers. He is including Social Security in that number, but Social Security is not part of the general fund. It is a separate, self-funding entity. Workers pay in a few dollars from every paycheck on the first $106,800, and at retirement start receiving a monthly benefit. As it currently stands, the Social Security trust fund is perfectly solvent for at least 25 more years — if we do nothing . It would be solvent in perpetuity if the earnings cap was raised and high-earners paid in on all of their income. His next question, though, really cuts to the heart of what really drives every conservative – how much should social programs “be allowed” to “squeeze” the spending on the military? What drives conservatives is fear. They are different from you and me. They are fearful and scared and will pay any price to feel “safe” in a world that is constantly changing and evolving and moving on without them. It is a sad and specious strawman argument. The United States currently accounts for 42.8% of all of the military spending in the world, but we only have 5% of the world’s population. Compare that to China, the most populace country in the world, which accounts for a mere 7.3% of global military expenditures. It’s simple math — the biggest piece of the pie is the place to start cutting off slivers. The military budget is the biggest piece of the pie — and after a certain point, the amount of money we spend doesn’t make us more safe, but instead does just the opposite . When he asks how much taxes should rise, and on whom, and which ones would least hurt economic growth, we know his answer. He gave it to us at the start: He has no problem at all with taxes that disproportionately hit those who can least afford it. Conservatives like to pretend that taxing the rich would keep them from creating jobs. Yet during the Bush years — and he pushed through two rounds of tax cuts in his first term – American jobs disappeared, not to be replaced, every single year , we didn’t gain them. Raising taxes on those at the bottom, on the other hand, hampers economic growth. The less money one has, the faster it is spent when it comes in. They buy groceries and clothes and gasoline, and they pay rent and utilities. Those are dollars that circulate through the economy locally and add a little stimulus at every stop along the way. Samuelson concludes with the familiar palaver about means testing and raising the eligibility age for Social Security and Medicare – even though Social Security is not part of the general fund, and the cost of health care is the underlying problem that is causing our money woes. If we actually did what he suggests and put off Medicare eligibility a couple more years, it would be a false economy. Imagine all the people who would be wiped out financially by medical bills between the ages of 65 and 67…assuring that many more seniors would pass his odious “means test” before accessing that which they paid into all their working lives.
Continue reading …For what seems like the umpteenth day in a row, MSNBC's Chris Matthews on Monday brought up Donald Trump and President Obama's birth certificate. On this occasion, the “Hardball” might have wished he hadn't when guest Errol Louis of NY1 marvelously said, “They like the fact that it bothers people like you, Chris, and I think they get more pleasure out of bugging you than anything else” (video follows with transcript and commentary): CHRIS MATTHEWS, HOST: Not as a journalist, but as an American Errol, are you offended by this birther talk? ERROL LOUIS, NY1: Not really. Honestly, look, it’s obviously a stand-in for something else. People seem to have lost their minds over something related to the President, and it expresses itself in this very peculiar way. You know, so, I pity those people more than anything. MATTHEWS: What is it? Is it factual? Is it a true inquiry? Is it true skepticism? Or is it “So's your old man?” It’s like school kids yelling at each other. “Your mama,” that kind of stuff. LOUIS: No, it’s probably, my, my, guess if I had to guess would be that it's a euphemism. In polite company, you can't say certain things about, about the President. So, they’ll say, “Well, he’s not an American.” You know, and they like the fact… MATTHEWS: So what’s it euphemistic for? LOUIS: They like the fact that it bothers people like you, Chris, and I think they get more pleasure out of bugging you than anything else. I'm not sure that's the reason, but it's certainly an ancillary benefit.
Continue reading …