economic recovery

As a Californian, one of the enduring takeaways of the Schwarzenegger era is just how much latitude he is given on the national level as some kind of transformative post-partisan leader, when those same reporters know that California is crumbling into dust under, and in many cases because of, his leadership. We witnessed this again today as national media types heaped praise on the Governor issuing a letter about the Obama health care reform plan:

“As Governor, I have made significant efforts to advance health reform in California. As the Obama Administration was launching the current debate on health care reform, I hosted a bipartisan forum in our state because I believe in the vital importance of this issue, and that it should be addressed through bipartisan cooperation.

“Our principal goals, slowing the growth in costs, enhancing the quality of care delivered, improving the lives of individuals, and helping to ensure a strong economic recovery, are the same goals that the president is trying to achieve. I appreciate his partnership with the states and encourage our colleagues on both sides of the political aisle at the national level to move forward and accomplish these vital goals for the American people.”

I love the phrase "significant efforts," by the way. Others might call them "failed efforts," but YMMV.

But this "praise" for health care reform is just a piece of paper. One would think that the national media would seek to know the actions of the Governor on health care - one would be wrong, but one would still think that. And it would take about 10 seconds of Googling to figure out that the Governor has vetoed key elements of the legislation working through Congress. Last year he vetoed AB1945, which would have banned rescission, the insurance industry practice of dumping sick customers for technical violations on their applications like typos the moment that they try to use their policies for treatment. He vetoed SB840, the universal health care bill, on multiple occasions in the past. He vetoed SB1440, which would have mandated that insurance companies spend 85% of premiums on medical care. He vetoed SB973, which would have created a public insurance option by linking local and regional measures. He vetoed AB2, expanding the state's high-risk pool for people with pre-existing conditions.

He basically has vetoed many of the same provisions to be found in the current health care bill. And he is threatening to veto every bill on his desk this year, including another bill to ban rescissions so that customers who have paid insurance premiums for years aren't left to die when they want to use their policies. Anthony Wright notes some of the other bills:

* AB 119 (Jones): GENDER RATING, to prohibit insurers from charging different premium rates based on gender.

* AB 2 (De La Torre): INDEPENDENT REVIEW, to create an independent review process when an insurer wishes to rescind a consumer's health policy, create new standards and requirements for medical underwriting, and requires state review before plan approval. Also raises the standard in existing law so that coverage can only be rescinded if a consumer willfully misrepresents his health history.

* AB 98 (De La Torre): MATERNITY COVERAGE, to require all individual insurance policies to cover maternity services.

* AB 244 (Beall): MENTAL HEALTH PARITY, to require most health plans to provide coverage for all diagnosable mental illnesses.

Dan Walters, one of the few pundits left in the state, calls these bills "nothing of cosmic importance". Well sure, he's not going to have a kid, and women are charged more than men by insurance companies anyway! To an entitled white man with a good-paying job, he doesn't have to worry about losing his policy or not getting comprehensive medical coverage. But to a woman who can't afford to lose her job to have a baby, or someone with a mental health problem who can't get relief for his suffering, or someone with an individual policy living constantly in fear that his or her insurance will get revoked precisely when they need it, these are issues of "cosmic importance." Anyone saying otherwise is ignorant.

And yet the Governor will have no problem holding these bills, and these people, hostage. His buddies at the Chamber of Commerce probably don't want him to sign them at all. So he writes a pretty letter supporting health care reform, while denying the very same measures to his own constituents. And national media types call him a "bold leader."



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The Washington Post's Harold Mayerson rips into the Blue Dogs:

Centrist Democrats' opposition to health reform verges on the incoherent. A caucus (the Blue Dogs) formed ostensibly to promote balanced budgets now disapproves of the proposed taxes that would cover the expenses of the new programs. The congressional centrists say, commendably, that they want to squeeze more economies out of the system, but they oppose giving more power to an agency that would set the payment scales for physicians.

[...] The Republican opposition to President Obama's push for health-care reform, on the other hand, makes clear political sense. If they can stop Obama on health care, as South Carolina Republican Sen. Jim DeMint recently noted, it "will be his Waterloo." Why Democrats of any ideology want to cripple their own president in his first year in office, and for seeking an objective that has been a stated goal of their party since the Truman administration, is a more mysterious matter.

Is the additional tax burden on small businesses their concern? If so, good news: The Center on Budget and Policy Priorities has found that only the top 4 percent of those businesses would be affected by the surcharge that House Democratic leaders proposed, and that's based on the original proposal, before Speaker Nancy Pelosi altered it to include just the wealthiest fraction of the top 1 percent of Americans. Would such a tax impede an economic recovery? In downturns this severe, it's been broad-based consumer spending and public-sector investment that have revived the economy. Private investment doesn't jump-start a revival of purchasing; it follows it.

But the big picture here, of which the resistance to reforming health care is just one element, is our growing inability to meet our national challenges. Almost all of the major nations with which we trade, for instance, have quasi-mercantilist policies that lead them to champion their own higher-wage growth industries, often in manufacturing. In America alone are such policies considered anathema. In consequence, as the Alliance for American Manufacturing reports in a new book, we shuttered 40,000 factories from 2001 through 2007 -- the years, ostensibly of prosperity, between the past two downturns. The diminution of manufacturing, which employs just 11 percent of the U.S. workforce, may please Wall Street, which looks with disfavor on decent-wage domestic production, and Wal-Mart, which tripled its purchases from China (from $9 billion to $27 billion annually) during roughly the same years those American factories closed, but it poses a clear threat to the nation's economic, and even military, power.

But act on behalf of the nation as a whole, even if it means goring Wall Street's or Wal-Mart's oxen? Perish the thought. Pass a health-reform bill that will cover 45 million uninsured Americans and slow the ruinous growth of health-care spending? Not if somebody, somewhere, actually has to pay higher taxes. Hey, we're America -- the can't-do nation.

As our former president might put it, Heckuva job, Brownies.


Mike's Blog Roundup

Ornery Bastard: Now Find Cheney

Unqualified Offerings: Drug War Explained

Infrastructurist: Between cell phones and higher speed limits, 25,00 deaths and $1 trillion lost on US roads?

The Rude Pundit: Right Wingers ready for violence to defend the rich, white way of life

Tales of the Freewayblogger: Radical Thinking

ANNALS OF JOURNALISM: Tapper's malpractice...Babbling Brooks...Fail...Right wing Rx: Blame the Poor...Newsbusters? BWA HAHAHA...Village Idiot...Cronkite's unintended legacy, his greatest regret, and his lesson for today's jouros...Fox News says Stimulus is too Republican...HACKTACULAR!...Your intrepid foreign correspondent...Dead Newsracks...If media was worth a damn.


TOPICS

Okay, let's see if I'm following this. The administration is talking about lending money to small businesses because the banks to which they've already funneled billions didn't do the thing all that money was supposed to do: make them open up the taps and lend working capital to businesses.

Are we clear now?

The Obama administration is developing an initiative to take money from the $700 billion program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan.

The new effort -- which would represent a striking shift from the rescue program's original mandate -- would direct billions of bailout dollars toward a program that aims more at saving jobs than righting the financial system.

A proposal being floated by senior Treasury Department officials calls for using the bailout funds to expand an existing government program that helps small companies borrow money from banks a low rates to keep their businesses going, the source said. These "working capital" loans would come with few restrictions and could be used for buying inventory, holding onto employees and paying off short-term debt.

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The initiative would expand a Small Business Administration lending program called 7(a), the agency's most popular lending program. Lines of credit for small companies could greatly increase in size. If the firm failed despite receiving this help, the government would cover most of the losses on the federal loan, perhaps as much as 90 percent. Lines of credit act like the credit cards for companies -- short-term revolving debt used to pay a variety of immediate expenses.

Discussions about the plan have reached the highest levels of the administration. In a meeting at the White House last week, Treasury Secretary Timothy F. Geithner expressed support of his staff's proposal, while National Economic Council director Lawrence Summers was more skeptical. Neither has made up his mind, officials said.

"Larry has supported every small business idea we have implemented so far," said Gene Sperling, a counselor to Geithner, who has been working on small business issues. "When we have a brainstorming session on new ideas, Larry as always asks the toughest questions in the room."

The debate over the proposal has centered on whether taxpayers would be protected and whether banks that make these loans would lower their standards if the government promises to cover most of any loan losses, according to participants present or briefed on the discussions. The spoke on condition of anonymity because the conversations were considered private.

On one hand, administration officials want to prevent healthy small businesses from closing their doors and adding their workers to the growing ranks of the unemployed. But small companies have poorer record of repaying loans compared to large corporations and would be the riskiest investment made under the bailout program to date.

The officials said the discussions are in the early stages and that no plan is expected before the fall. Ideas currently on the table may evolve or be scrapped altogether, they said.

Anything that creates or maintains jobs is good, but I wonder if this will really do that. I think too many of those small businesses are already gone.


TOPICS

The DCCC sent out an exceptionally well-done clip today pointing to the difference between Obama's vision of Hope and the Republican vision of failure. Please take a look at it. There's no doubt that the Republicans are on a mission to not just obstruct, but to undermine-- everything, from health care reform to the economic recovery and even to the safety of the nation itself. The clip puts forth a strong message, a compelling message. But it just isn't bipartisan enough. After all, it isn't only Republicans who want the single most important piece of Obama's change agenda-- substantive health care reform-- to fail. Plenty of Democrats get the exact same huge handouts from the exact same Medical-Industrial Complex and Big Insurance lobbyists and CEOs. And they will do anything to prevent single payer health care from passing-- or even being brought into the discussion!

I've got the full story up at DownWithTyranny, but John called from the airport and asked me to remind everyone to please consider helping out with the Blue America initiative to save the public option. As John keeps pointing out, health care reform isn't really a Republican vs Democratic issue; it's an issue for the welfare of all American families-- which is why a staggering 83% of Americans want the public option.

Blue America has launched this new campaign to persuade senators who routinely take a great deal of money from Big Insurance to work for their constituents, not for their campaign contributors. We are working with Brave New Films to put together a series of TV commercials that we will start running next month in Arkansas, home of two anti-reform Democrats, Blanche Lincoln and Mark Pryor. Please read more about the plan-- and consider helping us put it into effect-- here at our Blue America page.