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Republican Abundance: The Scapegoating of the Poor

[First two paragraphs updated and edited for clarity and additional detail]

At the height of the dreadful debt-ceiling debate, Pastor Rick Warren said this: tweeted this before removing it and apologizing to me for how mean-spirited it sounded:

Yes, it did sound mean-spirited, but it isn't any different than what Fox talkers say all the time. Here's a particularly illustrative clip:

Fox viewers and yes, even Pastor Warren might be forgiven for having the perception that half the country is shirking their patriotic duty, except that the entire construct is invalid to begin with.

With the tax reform debate about to heat up in Washington DC, this recent New York Times editorial struck me as particularly appropriate:

Representative Eric Cantor, the House majority leader, and several senators have made similar arguments, variations of the idea expressed earlier by Senator Dan Coats of Indiana that “everyone needs to have some skin in the game.”

This is factually wrong, economically wrong and morally wrong. First, the facts: a vast majority of Americans have skin in the tax game. Even if they earn too little to qualify for the income tax, they pay payroll taxes (which Republicans want to raise), gasoline excise taxes and state and local taxes. Only 14 percent of households pay neither income nor payroll taxes, according to the Tax Policy Center at the Brookings Institution. The poorest fifth paid an average of 16.3 percent of income in taxes in 2010.

Economically, reducing the earned income tax credit and the child tax credit — which would be required if everyone paid income taxes — makes no sense at a time of high unemployment. The credits, which only go to working people, have always been a strong incentive to work, as even some conservative economists say, and have increased the labor force while reducing the welfare rolls.

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ALEC exposed, and it ain't pretty - UPDATED

120px-Aex.jpg
ALEC stands for the American Legislative Executive Council, but what it really stands for is corporate conservatives corrupting democracy. As I wrote awhile back, ALEC creates turnkey legislation which is then disseminated to elected officials who are also members via their very secretive organization after it has been approved by corporate members. Only, we really never knew who those corporate members were or who the lawmakers were, either.

But now, thanks to someone inside who leaked documents recently, there is much more information, and more to be gleaned. I cannot emphasize enough how important this is. Here are some examples of work (and damage) ALEC has done.

Single Payer Stillbirth - Wendell Potter reports for The Nation:

Reviewing ALEC’s healthcare-related bills and resolutions from the past few years makes it clear that insurers realized early on that the best way to block the profit-threatening provisions of any federal reform would be to attack them at the state level through ALEC. With Democrats in control of both houses of Congress and the White House in 2009, insurers assumed some kind of healthcare reform was inevitable, so they adopted a strategy to shape rather than stop reform.

Earlier in that piece Potter steps through the reasons that single payer wasn't going to be put on the table, but this paragraph right here tells you all you need to know about it: They were one step ahead and had been before any proposals went out on the table. That's also, by the way, how the public option was killed.

There's more, too. They approved legislation for tort reform, block grant funding for Medicaid, and selling insurance across state lines. You recognize these policies as the current conservative platform, I'm sure. However, what's new about this is that the platform was dictated, agreed to, drafted and disseminated by a small group of corporations, right-wing supporting think tanks and their conservative legislative partners and we can finally prove it.

Who are these people?

  • Corporations - Here is a list of corporate members of ALEC. They're the same names you see on the top of the Dow and NASDAQ lists, with some exceptions, like Koch Industries. Notable members include Altria (formerly RJR Tobacco), Corrections Corporation of America (CCA) - the private prison operator, DuPont, Exxon-Mobil, McDonalds, Intuit, and Coca-Cola. But they are just a few. I doubt there are many names on the list that aren't recognizable.
  • Corporate Trade Groups - Groups like the American Bail Association, American Bankers Association, PhrMA, National Association of Charter School Organizers, and more.
  • Non-profit organizations - Those oh-so-nonpartisan groups (yes, that's sarcasm) like The Mackinac Center for Freedom and Democracy (ha!), Goldwater Institute, and Reason Foundation are or have been members. You know, the organizations that write legislation and hand it off to people like Scott Walker to ram through Wisconsin, or who shut down the government like they have in Minnesota (for nearly 2 weeks now).

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The Raging Corporate Proxy War

In today's climate there's a tendency to view things through the lens of the people versus corporations, where all the corporations are allied and aligned against people. But there's another layer, far more interesting, surrounding Jeffrey Immelt and his cordial relationship with the White House. It reveals a corporation vs. corporation rivalry fought via the current political culture wars.

Via AlterNet:

FreedomWorks and the NCPPR, another free-market think tank, have launched a campaign to “dethrone” Immelt from GE, calling him the “king of crony capitalism”, and are running ads attacking Immelt’s conflicts of interest as a blatant sign of corruption. “It’s time to break up the unethical romance between government and big business,” said FreedomWorks President Matt Kibbe in a statement. “For too long, corporate elites have lobbied to profit from the size and growth of government at the expense of hard-working Americans.”

Oh, this is rich, coming from the organization funded by corporate elites who not only lobbied to profit from government but also hoodwinked ordinary people in order to profit from them. And of course, it's simply a smokescreen for a corporate proxy war between Koch-allied corporations and GE-allied corporations.

Before anything else, GE and Koch Industries are direct competitors in the energy arena. I'm sure the bailout of GE Capital contributed to the rage the Kochs felt about bailouts in general (ideology aside), since a weakened GE would have meant a stronger Koch Industries, but alas. It didn't quite work out that way.

In addition to being in direct competition, GE has positioned itself as a "green energy" company, integrating climate change into their business model. This runs exactly counter to Koch, who continues to not only deny climate change, but fight for the right to keep the country enslaved to oil for generations to come.

I'm still not happy about Immelt's prominence and access to the president, but I do admit to a small "har-har" moment over FreedomWorks and the Koch family going to such lengths to "dethrone" Jeffrey Immelt. Plus, it distracts them for now.



If we were having an actual national emergency, rather than corporations happily sitting on piles of cash and handing out record bonuses and dividends, this might --- might make sense. But since the only "emergency" here is corporate greed, I can only speculate as to why it only makes sense to take money from workers.

I think it would make a lot more sense to take 95% from CEOs:

With 9.5 percent unemployment and millions more underemployed, it seems like a daunting, almost impossible, task to find jobs for everyone. But Ken Maryland, president of ClearView Economics, has an idea: Cut everyone's pay by 10 percent.

"EVERYBODY -- from the president down to the chambermaid -- takes a 10% cut in compensation," writes Marlyand for Marketwatch. "This freed-up compensation expense is then used to re-employ the 8% (12.3 million) of the unemployed. Net-net, the nation's compensation bill has remained unchanged, and the unemployment rate is now 4.5%! Voila!"

The 4.5 percent Maryland refers to, is the optimal unemployment rate, which allows for employee turnover and doesn't risk inflation. While his idea may seem crazy, companies have begun to do it in small fashion, as Maryland points out, by having furloughs and pay cuts.

Maryland says this has a chance because there's an "inherent fairness" to the idea since everyone will be receiving the pay cut. But not really, since the employed would have to take the pay cut, while the unemployed will receive a significant increase in pay by suddenly having a paycheck.

Not to mention, the drop in pay doesn't mean a mortgage that's locked in will suddenly be cheaper or a car payment miraculously fall 10 percent. Maryland also says an issue with the idea would be making sure everyone falls in line, pointing out that unions would have a fit (although I'm not sure that CEO, whose pay increased more than anyone in business over the past 30 years, would be too happy with the idea as well).

Not to mention the biggest flaw in this proposal: Namely, why would you trust executives to hire people after they cut salaries?



News Corp isn't the only corporate media donor

CNN has taken pains to give Murdoch some PR cover with their not-so-subtle list of donors to both parties.

General Electric, which owns NBC, has also made substantial political contributions in the 2010 election cycle. For example, GE donated
$688,900 to Democrats through its PAC this election cycle compared to $410,100 to Republicans
. The company has also given $75,500 to Democratic-affiliated leadership PACs and $74,500 to Republican-affiliated leadership PACs.

Meanwhile, GE has donated $237,000 to the Democratic Governors Association and $205,000 to the Republican Governors Association.

Time Warner, the parent company of CNN, has given $60,000 to the Democratic Governors Association in the 2010 election cycle, according to CQ Moneyline. Meanwhile, Time Warner Cable, a former subsidiary of Time Warner, donated $50,000 to the RGA this election cycle.

There are more, too. On the other hand, it's worth noting that News Corporation donated one million dollars to one party only, unlike the others CNN mentions.

Beyond the way it appears, News Corp. may have another problem, too.



Google is evil: Rally at their HQ

Google and Verizon released a new plan this week for how the Internet should operate (see Susan's post for more background), if they got to rule the world. We'd keep Net Neutrality for the wired Internet (at least for consumers not corporations), but they could set up fast lanes and slow lanes for the wireless Internet. Wireless is of course the future of the Internet, but then again that is exactly the point.

Their proposal has devided the tech industry, as the NYT reported today, with Facebook, Amazon, eBay and venture capitalists raising serious concerns with the Google/Verizon evil deal:

It set off a flood of reaction, much of it negative, from Web companies and consumer advocacy groups. In the most extreme situation that opponents envision, two Internets could emerge — the public one known today, and a private one with faster lanes and expensive tolls. [snip]

The wireless Internet is quickly emerging as the dominant technology platform, said Matt Cohler, a general partner at Benchmark Capital, a prominent venture firm in Silicon Valley that has invested in start-ups like Twitter. “It is as important to have the right protections in place for the newer platform as it is for the older platform.”

The media has trashed their evil deal and over 300,000 people have signed an open letter demanding Google drop this proposal.

It's a giant corporate power-grab and Google who claims to "do no evil" is doing exactly that with this evil plan. That's why MoveOn, the PCCC (where I work), CREDO Action, Color of Change and Free Press are holding a rally at noon tomorrow in front of Google headquarters. The event is at the corner of Amphitheatre Parkway and Charleston Road in Mountain View. Click here to RSVP.

For people in the San Francisco area, there will be a bus leaving from the San Francisco Opera House at 11 a.m. You have to RSVP to get on the bus, as seats are limited.

This deal can be stopped, but only if President Obama and FCC Chairman Julius Genachowski understand just how angry we are at the prospect of our rights being trampled online by Google and other corporate giants. So, please join us, or if you don't live in the Bay Area, pass along the info to your friends.



Republicans to 9/11 Responders: Die, and Die Quickly

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(h/t Heather)

This clip of Anthony Weiner going ballistic on the House floor is one for the ages -- it should be watched again and again and again, and not only because he was angry and frustrated, but because he spoke a truth that all of us expect from our representatives. It's really quite simple: "If you believe that it's right, you vote yes. You don't hide behind procedure and give cover to your pals."

It's really that simple, but here's the backstory. The House has been trying to re-open the 9/11 Victims Compensation Fund through 2031 for 9/11 responders whose health has been affected.

When it became apparent that the Republicans were going to attach "poison pill" amendments to the bill that had nothing to do with 9/11 and everything to do with their political agenda, Democrats shut down the possibility of amending the bill by moving it to the suspension calendar, where a minimum 2/3rds vote is needed for it to pass.

Republicans applied the same old talking points, calling it a "massive new entitlement program". Actually, that's not quite right. They called it a "massive job-killing new entitlement program", because that's the Frank Luntz mantra of the week. (I was monitoring the Senate at the same time, and somehow the Small Business Jobs bill also became another "massive job-killing new entitlement program.") Of course, that's nonsense too, given that it had been structured to be paid for by closing a tax loophole for foreign corporations.

If you believe it's right, you vote yes.

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So, apparently 68% of Americans think that the political class doesn't listen to them. After TARP, where calls were running between 100:1 to 1200:1 against, passed, the failure of Congress to get out of Iraq after 2006, the failure of the 70%+ supported public option, and on and on, the only mysterious thing is why it's only 68%.

But why should the political class listen? They get the majority of their reelection funds from corporations and the rich. Their spouses and children are given good jobs by such donors, and if ordinary people do actually ever vote them out for not looking after their interests, well, as long as they went down doing what they were supposed to, they'll still be very well taken care of.

Get elected, do what your corporate masters tell you to, and you'll never ever have to worry about money ever again.

Only a sucker or an idealist would do anything else.

This is the fundamental problem with the US. There is no accountability for the political class. They and those who take care of them have made sure of it. Go to war with a nation which has never attacked the US based on a big lie propaganda campaign, or spy on millions of Americans, or torture, or deregulate the economy so that Wall Street can cash in and crash the economy, and hey, so what, there's no cost for you.

And as long as there is no cost for them, they'll keep doing it. Just like Wall Street, having been bailed out after crashing the world economy, will do it again. They got rich doing it, why wouldn't they do it again.

They'd have to be suckers or idealists not to.



Back in early 2008 when the primaries were heating up between Hillary Clinton and Barack Obama, a friend with contacts in high corporate places whispered a secret in my ear. The secret he told: Money sources will tighten and corporations will hoard cash in an effort to make whichever Democrat is elected a one-term wonder.

At the time I shook it off as wishful thinking. After all, he's one of those corporate guys, and saw the handwriting on the wall. Knowing he wouldn't get another Republican administration for awhile (If I had my way, it would be forever), he was just whispering silly scare threats in my ear to suppress any enthusiasm I might have had for a Democratic President.

Fast forward to July, 2010 and his words practically scream at me. Anyone who doubts what is happening in this country right now should go read Fareed Zakaria's column about why corporations are hoarding cash. Hoarding to the tune of nearly 2 TRILLION dollars, by the way.

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Yeah, I especially enjoyed the part in Citizens United's "Hillary: The Movie" where Obama says Clinton had no diplomatic experience. Thank God he won and she doesn't have anything to do with the State Department, huh?

Anyway, how amazing that not only do corporations get to pour unlimited amounts of money into the political system, they don't even have to disclose it, thanks to this new FEC ruling. Here's hoping some of those famous "Hollywood liberals" start putting some product together to counterbalance the expected flood of similar right-wing tropes:

WASHINGTON — A little-noticed Federal Election Commission ruling that expands the definition of “media" to include a partisan film production group is the latest in a series of actions eroding legislative limits on the influence of money in politics.

“We’re really returning, seemingly inexorably, toward an entirely deregulated system," said Thomas Mann, who studies campaign finance at the Brookings Institution, a Washington think tank. “It was a rather breathtaking decision."

The commission voted June 10 to designate the filmmaker Citizens United a “press entity," equating its often highly partisan work — including films attacking Democrats Hillary Rodham Clinton and President Obama — with the work of nightly newscasts.

The result, analysts say, is that the group is not required to disclose its role in sponsoring political projects or activities, or reveal the source of its funding. Thus, it becomes impossible to discern its influence in the political process.

No FEC commissioner would agree to be interviewed, according to a spokeswoman. But in defending the commission’s 4-to-1 vote, the panel’s vice chairwoman, Cynthia Bauerly, said in a statement that traditional images of the press no longer apply.

“We all used to know that ‘press entity’ meant something like ABC News," she said in prepared remarks to the commission. “Today, however, technology has changed nearly everything about media."

The FEC ruling has alarmed advocates for campaign finance rules, who say it sets a troubling precedent.

“If a self-proclaimed political advocacy group that has made some very, very slanted so-called documentaries to influence elections constitutes the press, it’s difficult to imagine what types of political advocacy groups would not qualify," said Paul Ryan, an election law specialist at the Campaign Legal Center, a nonpartisan watchdog.