...According to the nonpartisan Tax Policy Center, making all of the Bush tax cuts permanent, as opposed to following the Obama proposal, would cost the federal government $680 billion in revenue over the next 10 years. For the sake of comparison, it took months of hard negotiations to get Congressional approval for a mere $26 billion in desperately needed aid to state and local governments.
And where would this $680 billion go? Nearly all of it would go to the richest 1 percent of Americans, people with incomes of more than $500,000 a year. But that’s the least of it: the policy center’s estimates say that the majority of the tax cuts would go to the richest one-tenth of 1 percent. Take a group of 1,000 randomly selected Americans, and pick the one with the highest income; he’s going to get the majority of that group’s tax break. And the average tax break for those lucky few — the poorest members of the group have annual incomes of more than $2 million, and the average member makes more than $7 million a year — would be $3 million over the course of the next decade.
...The original campaign for the Bush tax cuts relied on deception and dishonesty. In fact, my first suspicions that we were being misled into invading Iraq were based on the resemblance between the campaign for war and the campaign for tax cuts the previous year. And sure enough, that same trademark deception and dishonesty is being deployed on behalf of tax cuts for the wealthiest Americans.
So, for example, we’re told that it’s all about helping small business; but only a tiny fraction of small-business owners would receive any tax break at all. And how many small-business owners do you know making several million a year?
Or we’re told that it’s about helping the economy recover. But it’s hard to think of a less cost-effective way to help the economy than giving money to people who already have plenty, and aren’t likely to spend a windfall.
No, this has nothing to do with sound economic policy. Instead... it’s about a dysfunctional and corrupt political culture, in which Congress won’t take action to revive the economy, pleads poverty when it comes to protecting the jobs of schoolteachers and firefighters, but declares cost no object when it comes to sparing the already wealthy even the slightest financial inconvenience.
So far, the Obama administration is standing firm against this outrage. Let’s hope that it prevails in its fight. Otherwise, it will be hard not to lose all faith in America’s future.
--Paul Krugman
Monday, August 23, 2010
Monday, August 9, 2010
"America's On Unlit, Unpaved Road To Nowhere"
...We’re told that we have no choice, that basic government functions — essential services that have been provided for generations — are no longer affordable. And it’s true that state and local governments, hit hard by the recession, are cash-strapped. But they wouldn’t be quite as cash-strapped if their politicians were willing to consider at least some tax increases.
And the federal government, which can sell inflation-protected long-term bonds at an interest rate of only 1.04 percent, isn’t cash-strapped at all. It could and should be offering aid to local governments, to protect the future of our infrastructure and our children.
But Washington is providing only a trickle of help, and even that grudgingly. We must place priority on reducing the deficit, say Republicans and “centrist” Democrats. And then, virtually in the next breath, they declare that we must preserve tax cuts for the very affluent, at a budget cost of $700 billion over the next decade.
In effect, a large part of our political class is showing its priorities: given the choice between asking the richest 2 percent or so of Americans to go back to paying the tax rates they paid during the Clinton-era boom, or allowing the nation’s foundations to crumble — literally in the case of roads, figuratively in the case of education — they’re choosing the latter....
How did we get to this point? It’s the logical consequence of three decades of antigovernment rhetoric, rhetoric that has convinced many voters that a dollar collected in taxes is always a dollar wasted, that the public sector can’t do anything right.
The antigovernment campaign has always been phrased in terms of opposition to waste and fraud — to checks sent to welfare queens driving Cadillacs, to vast armies of bureaucrats uselessly pushing paper around. But those were myths, of course; there was never remotely as much waste and fraud as the right claimed. And now that the campaign has reached fruition, we’re seeing what was actually in the firing line: services that everyone except the very rich need, services that government must provide or nobody will, like lighted streets, drivable roads and decent schooling for the public as a whole.
So the end result of the long campaign against government is that we’ve taken a disastrously wrong turn. America is now on the unlit, unpaved road to nowhere.
--Paul Krugman
And the federal government, which can sell inflation-protected long-term bonds at an interest rate of only 1.04 percent, isn’t cash-strapped at all. It could and should be offering aid to local governments, to protect the future of our infrastructure and our children.
But Washington is providing only a trickle of help, and even that grudgingly. We must place priority on reducing the deficit, say Republicans and “centrist” Democrats. And then, virtually in the next breath, they declare that we must preserve tax cuts for the very affluent, at a budget cost of $700 billion over the next decade.
In effect, a large part of our political class is showing its priorities: given the choice between asking the richest 2 percent or so of Americans to go back to paying the tax rates they paid during the Clinton-era boom, or allowing the nation’s foundations to crumble — literally in the case of roads, figuratively in the case of education — they’re choosing the latter....
How did we get to this point? It’s the logical consequence of three decades of antigovernment rhetoric, rhetoric that has convinced many voters that a dollar collected in taxes is always a dollar wasted, that the public sector can’t do anything right.
The antigovernment campaign has always been phrased in terms of opposition to waste and fraud — to checks sent to welfare queens driving Cadillacs, to vast armies of bureaucrats uselessly pushing paper around. But those were myths, of course; there was never remotely as much waste and fraud as the right claimed. And now that the campaign has reached fruition, we’re seeing what was actually in the firing line: services that everyone except the very rich need, services that government must provide or nobody will, like lighted streets, drivable roads and decent schooling for the public as a whole.
So the end result of the long campaign against government is that we’ve taken a disastrously wrong turn. America is now on the unlit, unpaved road to nowhere.
--Paul Krugman
Friday, July 23, 2010
Monday, June 21, 2010
Dead On Arrival: Obama's Financial Reform Fails
The House-Senate reconciliation process is still underway and some details will still change. But the broad contours of “financial reform” are already completely clear; there are no last minute miracles at this level of politics. The new consumer protection agency for financial products is a good idea and worth supporting – assuming someone sensible is appointed by the president to run it. Yet, at the end of the day, essentially nothing in the entire legislation will reduce the potential for massive system risk as we head into the next credit cycle....
more from Simon Johnson
more from Simon Johnson
Tuesday, June 15, 2010
Wednesday, June 2, 2010
Fascist U.S.: Love it, Leave it, or Do something
Many news reports about the Gulf oil catastrophe refer to it as a "spill." Wrong. A spill is a minor "oops" — one accidentally spills milks, for example, and from childhood, we're taught the old aphorism: "Don't cry over spilt milk." What's in the Gulf isn't milk and it wasn't spilt. The explosion of BP's Deepwater Horizon well was the inevitable result of deliberate decisions made by avaricious corporate executives, laissez faire politicians and obsequious regulators.
As the ruinous gulf oil blowout spreads onto land, over wildlife, across the ocean floor and into people's lives, it raises a fundamental question for all of us Americans: Who the hell's in charge here? What we're witnessing is not merely a human and environmental horror, but also an appalling deterioration in our nation's governance. Just as we saw in Wall Street's devastating economic disaster and in Massey Energy's murderous explosion inside its Upper Big Branch coal mine, the nastiness in the gulf is baring an ugly truth that We the People must finally face: We are living under de facto corporate rule that has rendered our government impotent.
Thirty years of laissez-faire, ideological nonsense (pushed upon us with a vengeance in the past decade) has transformed government into a subsidiary of corporate power. Wall Street, Massey, BP and its partners — all were allowed to become their own "regulators" and officially encouraged to put their short-term profit interests over the public interest.
Let's not forget that on April 2, barely two weeks before Deepwater Horizon blew and 11 people perished on the spot, the public's No. 1 official, Barack Obama, trumpeted his support for more deepwater oil drilling, blithely regurgitating Big Oil's big lie: "Oil rigs today generally don't cause spills." He and his advisors had not bothered to check the truth of that — they simply took the industry's word. That's not governing, it's aiding and abetting profiteers, and it's a pathetic performance.
But that was only the start of Washington's oily confession that it has surrendered control to corporate arrogance and avarice....
--Jim Hightower
...Blanchard took us out into the Gulf to see the skimming operations. None of the boat owners would talk to us. Blanchard explained, “They’re scared to talk, and they’re scared to be seen, because BP has threatened them that if they talk to the media, they’re going to be fired.”
One fisherman, Glenn Swift, whom we met in Buras, La., confirmed that he signed a contract with a clause stating that speaking to the media was grounds for termination. When I asked him why, then, he was talking to me, he said: “I don’t feel it’s the right thing to shut somebody up. We’re supposed to live in the United States, and we’re supposed to have freedom of speech.”
Down the road from Blanchard, a family has erected 101 crosses in their front yard, each one commemorating something they love, like “brown pelicans,” “beach sunsets” and “sand between the toes.” The sign next to the cemetery of dreams reads, “In memory of all that is lost, courtesy of BP and our federal government.”
--Amy Goodman
...You, the graduating class of 2010, are caught in a system; then again, so are our leaders. In recent years, we've had two presidents, George W. Bush and Barack Obama, who could not be mistaken for one another. In most obvious ways -- style, thinking, personality, politics, sensibility, impulses -- they couldn't be more different, as have been the ways they have approached problems. One was a true believer in the glories of American military and executive power, the other is a manager of a declining power and what passes for a political "pragmatist" in our world. Yet, more times than is faintly comfortable, the two of them have ended up in approximately the same policy places -- whether on the abridgement of liberties, the expansion of the secret activities of military special operations forces across the Greater Middle East, the CIA drone war in the Pakistani borderlands and elsewhere, the treatment of prisoners, our expanding wars, Pentagon budgets, offshore oil drilling and nuclear power, or other topics which matter in our lives.
This should be more startling than it evidently is for most Americans. If the policies of these two disparate figures often have a tweedledum-and-tweedledee-ish look to them, then what we face is not specific party politics or individual style, but a system with its own steamroller force, and its own set of narrow, repetitive "solutions" to our problems. We also face an increasingly militarized, privatized government, its wheels greased by the funds of giant corporations, that now regularly seems to go about the business of creating new Katrinas.
Compared to the long-gone world I graduated into, yours seems to me little short of dystopian, even if, on the surface, it still has something of the look of American abundance. If nothing changes in this equation, your experience, as far as I can tell, will be of ever less available, ever less decent jobs and of ever less wealth ever less well distributed, as well as of a federal government ("the bureaucracy") that has everything to do with giant corporations, their lobbyists and publicists, and the military-industrial complex -- and nothing to do with you.
--Tom Engelhardt
As the ruinous gulf oil blowout spreads onto land, over wildlife, across the ocean floor and into people's lives, it raises a fundamental question for all of us Americans: Who the hell's in charge here? What we're witnessing is not merely a human and environmental horror, but also an appalling deterioration in our nation's governance. Just as we saw in Wall Street's devastating economic disaster and in Massey Energy's murderous explosion inside its Upper Big Branch coal mine, the nastiness in the gulf is baring an ugly truth that We the People must finally face: We are living under de facto corporate rule that has rendered our government impotent.
Thirty years of laissez-faire, ideological nonsense (pushed upon us with a vengeance in the past decade) has transformed government into a subsidiary of corporate power. Wall Street, Massey, BP and its partners — all were allowed to become their own "regulators" and officially encouraged to put their short-term profit interests over the public interest.
Let's not forget that on April 2, barely two weeks before Deepwater Horizon blew and 11 people perished on the spot, the public's No. 1 official, Barack Obama, trumpeted his support for more deepwater oil drilling, blithely regurgitating Big Oil's big lie: "Oil rigs today generally don't cause spills." He and his advisors had not bothered to check the truth of that — they simply took the industry's word. That's not governing, it's aiding and abetting profiteers, and it's a pathetic performance.
But that was only the start of Washington's oily confession that it has surrendered control to corporate arrogance and avarice....
--Jim Hightower
...Blanchard took us out into the Gulf to see the skimming operations. None of the boat owners would talk to us. Blanchard explained, “They’re scared to talk, and they’re scared to be seen, because BP has threatened them that if they talk to the media, they’re going to be fired.”
One fisherman, Glenn Swift, whom we met in Buras, La., confirmed that he signed a contract with a clause stating that speaking to the media was grounds for termination. When I asked him why, then, he was talking to me, he said: “I don’t feel it’s the right thing to shut somebody up. We’re supposed to live in the United States, and we’re supposed to have freedom of speech.”
Down the road from Blanchard, a family has erected 101 crosses in their front yard, each one commemorating something they love, like “brown pelicans,” “beach sunsets” and “sand between the toes.” The sign next to the cemetery of dreams reads, “In memory of all that is lost, courtesy of BP and our federal government.”
--Amy Goodman
...You, the graduating class of 2010, are caught in a system; then again, so are our leaders. In recent years, we've had two presidents, George W. Bush and Barack Obama, who could not be mistaken for one another. In most obvious ways -- style, thinking, personality, politics, sensibility, impulses -- they couldn't be more different, as have been the ways they have approached problems. One was a true believer in the glories of American military and executive power, the other is a manager of a declining power and what passes for a political "pragmatist" in our world. Yet, more times than is faintly comfortable, the two of them have ended up in approximately the same policy places -- whether on the abridgement of liberties, the expansion of the secret activities of military special operations forces across the Greater Middle East, the CIA drone war in the Pakistani borderlands and elsewhere, the treatment of prisoners, our expanding wars, Pentagon budgets, offshore oil drilling and nuclear power, or other topics which matter in our lives.
This should be more startling than it evidently is for most Americans. If the policies of these two disparate figures often have a tweedledum-and-tweedledee-ish look to them, then what we face is not specific party politics or individual style, but a system with its own steamroller force, and its own set of narrow, repetitive "solutions" to our problems. We also face an increasingly militarized, privatized government, its wheels greased by the funds of giant corporations, that now regularly seems to go about the business of creating new Katrinas.
Compared to the long-gone world I graduated into, yours seems to me little short of dystopian, even if, on the surface, it still has something of the look of American abundance. If nothing changes in this equation, your experience, as far as I can tell, will be of ever less available, ever less decent jobs and of ever less wealth ever less well distributed, as well as of a federal government ("the bureaucracy") that has everything to do with giant corporations, their lobbyists and publicists, and the military-industrial complex -- and nothing to do with you.
--Tom Engelhardt
Monday, May 10, 2010
Obama Pushes Supreme Court To The Right
President Obama ...[has replaced] John Paul Stevens [with Elena Kagan, and] the Supreme Court will move rightward. The nomination is very disturbing, especially because it's part of a pattern. The White House is in the grip of conventional centrist wisdom. Grim results stretch from Afghanistan to the Gulf of Mexico to communities across the USA.
On numerous policy fronts, such conformity to a centrist baseline has smothered hopes for moving this country in a progressive direction. Now, the president has taken a step that jeopardizes civil liberties and other basic constitutional principles....
"During the course of her Senate confirmation hearings as Solicitor General, Kagan explicitly endorsed the Bush administration's bogus category of ‘enemy combatant,' whose implementation has been a war crime in its own right," University of Illinois law professor Francis Boyle noted last month. "Now, in her current job as U.S. Solicitor General, Kagan is quarterbacking the continuation of the Bush administration's illegal and unconstitutional positions in U.S. federal court litigation around the country, including in the U.S. Supreme Court."
Boyle added: "Kagan has said ‘I love the Federalist Society.' This is a right-wing group; almost all of the Bush administration lawyers responsible for its war and torture memos are members of the Federalist Society."
The departing Justice Stevens was a defender of civil liberties. Unless the Senate refuses to approve Kagan for the Supreme Court, the nation's top court is very likely to become more hostile to civil liberties and less inclined to put limits on presidential power....
For more than 15 months, evidence has mounted that President Obama routinely combines progressive rhetoric with contrary actions. As one bad decision after another has emanated from the Oval Office, some progressives have favored denial -- even though, if the name "Bush" or "McCain" had been attached to the same presidential policies, the same progressives would have been screaming bloody murder.
But enabling bad policies, with silent acquiescence or anemic dissent, encourages more of them. At this point, progressive groups and individuals who pretend that Obama's policies merely need a few tweaks, or just suffer from a few anomalous deficiencies, are whistling past a political graveyard....
The Justice Department continues to backtrack on civil liberties. And now...the president's nomination of Elena Kagan...will move the Supreme Court to the right.
Norman Solomon is a journalist, historian, and progressive activist. His book "War Made Easy: How Presidents and Pundits Keep Spinning Us to Death" has been adapted into a documentary film of the same name. His most recent book is "Made Love, Got War." He is a national co-chair of the Healthcare NOT Warfare campaign. In California, he is co-chair of the Commission on a Green New Deal for the North Bay; www.GreenNewDeal.info. Essay originally published in Common Dreams.
On numerous policy fronts, such conformity to a centrist baseline has smothered hopes for moving this country in a progressive direction. Now, the president has taken a step that jeopardizes civil liberties and other basic constitutional principles....
"During the course of her Senate confirmation hearings as Solicitor General, Kagan explicitly endorsed the Bush administration's bogus category of ‘enemy combatant,' whose implementation has been a war crime in its own right," University of Illinois law professor Francis Boyle noted last month. "Now, in her current job as U.S. Solicitor General, Kagan is quarterbacking the continuation of the Bush administration's illegal and unconstitutional positions in U.S. federal court litigation around the country, including in the U.S. Supreme Court."
Boyle added: "Kagan has said ‘I love the Federalist Society.' This is a right-wing group; almost all of the Bush administration lawyers responsible for its war and torture memos are members of the Federalist Society."
The departing Justice Stevens was a defender of civil liberties. Unless the Senate refuses to approve Kagan for the Supreme Court, the nation's top court is very likely to become more hostile to civil liberties and less inclined to put limits on presidential power....
For more than 15 months, evidence has mounted that President Obama routinely combines progressive rhetoric with contrary actions. As one bad decision after another has emanated from the Oval Office, some progressives have favored denial -- even though, if the name "Bush" or "McCain" had been attached to the same presidential policies, the same progressives would have been screaming bloody murder.
But enabling bad policies, with silent acquiescence or anemic dissent, encourages more of them. At this point, progressive groups and individuals who pretend that Obama's policies merely need a few tweaks, or just suffer from a few anomalous deficiencies, are whistling past a political graveyard....
The Justice Department continues to backtrack on civil liberties. And now...the president's nomination of Elena Kagan...will move the Supreme Court to the right.
Norman Solomon is a journalist, historian, and progressive activist. His book "War Made Easy: How Presidents and Pundits Keep Spinning Us to Death" has been adapted into a documentary film of the same name. His most recent book is "Made Love, Got War." He is a national co-chair of the Healthcare NOT Warfare campaign. In California, he is co-chair of the Commission on a Green New Deal for the North Bay; www.GreenNewDeal.info. Essay originally published in Common Dreams.
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