Saturday, June 19, 2010

Family Values Exemplified by Obama

President Barack Obama and First Lady Michelle...Image via Wikipedia

Washington Post

On Father's Day, hypocrites are all in the family


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Saturday, June 19, 2010 
 
Family, marriage and the contribution of fathers come together as topics for reflection on Father's Day. So I'd like to know why Barack Obama, a husband and a father in a family structure that encompasses bonds deemed essential to our society, is constantly and savagely attacked by conservative leaders whose personal circumstances undermine the family values they espouse?
 
Consider Obama: Raised by a single mother in a middle-class family where hard work and education were watchwords, Obama graduated from two of the top schools in the country, Columbia University and Harvard Law School. His legal scholarship was recognized when he became the first African American president of the Harvard Law Review. He married and, equally important, has stayed married to Michelle Robinson, a Princeton graduate and Harvard Law alumna. He lives with his wife, two children and his mother-in-law. Obama: constitutional law professor, civil rights lawyer, state legislator, U.S. senator, 44th U.S. president, family man.
Now let's turn to Obama's foremost critics: Rush Hudson Limbaugh III, Newton Leroy Gingrich and Sarah Palin.
Limbaugh and Gingrich have said too many negative things about Obama to count. "I want him to fail" (Limbaugh) and "secular socialist" (Gingrich) are just two of their attacks. Yet two of the nation's loudest proponents of family-values issues are serial husbands. Between them, the two men have had seven wives.
Limbaugh, who dropped out of college after one year, married his first wife, a sales secretary, in September 1977. She filed for divorce three years later; it was granted in July 1980. Limbaugh next married an usherette in 1983; they divorced in 1990. In May 1994, he married an aerobics instructor he met online. They separated in June 2004 and divorced that December.
Two weeks ago, Limbaugh married a Florida party planner. He's still wedded to her as far as I can tell.
Gingrich is one nuptial behind Limbaugh. But he started earlier. In 1962, at age 19, Gingrich married his 26-year-old former high school geometry teacher. Gingrich left her in the spring of 1980. He did return to see her at the hospital where she was getting treatment for cancer. He was there to discuss divorce terms. Formally divorced in 1981, Gingrich remarried six months later.
That marriage lasted until 2000. By his own admission, Gingrich started an affair with a woman 23 years his junior during his second marriage. It was around the time he was taking Bill Clinton to task over Monica Lewinsky.
Gingrich's second marriage ended in 2000, and he married his girlfriend the same year. The current Mrs. Gingrich is still with him, as far as I can tell.
Gingrich and Limbaugh, national icons in the conservative movement -- and mockers of this country's most traditional and honored symbol of commitment: holy matrimony.
But what would a Father's Day discussion of the nuclear family and a moral society be without bringing into the picture Mrs. Family Values herself, Sarah Palin?
The same Palin who last week said of President Obama, "It sounds like the inner circle that he has are some Chicago thugs." Well, Palin knows lawbreaking, too.
Her sister-in-law, Diana Palin, half sister of the former governor's husband, got a 15-month sentence this year. Burglarizing the same Alaska house three times for money to satisfy a drug habit is the kind of thing that can get you arrested. Thuggery? How about Sherry Johnston, the mother of Levi Johnston, the high school dropout who fathered Palin's grandson? She was arrested and charged with selling drugs; after pleading guilty to one count with intent to deliver the drug OxyContin she was sentenced to three years.
Because of her medical condition, the woman who was once Bristol Palin's future mother-in-law was released from prison to home confinement, where she wears an ankle-monitoring device.
And the whereabouts of 19-year-old Levi on this Father's Day weekend? His bonds with the Palins were so tight, he said on TV, that Sarah and her husband, Todd, allowed Levi to live in their house with Bristol while they dated. Conservative family values?
Levi can be found on the cover of Playgirl magazine, his nude body blocked from full exposure by his strategically placed arm.
And to think, as we prepare to celebrate this day of men and family, Limbaugh, Gingrich and Palin have the unmitigated gall to look down their noses at our president.
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Friday, June 18, 2010

Back Room Deals Not In Public Interest?

Robert ReichImage via Wikipedia

The Obama Plot for a Carbon Tax

By Robert Reich


Thursday, June 17, 2010
Teachable moments are rare in America. George Bush missed the chance right after 9/11 to call for a new era of service to the nation; he asked instead that Americans do more shopping.
Tuesday night, President Obama did not call for a tax on carbon. He didn’t even ask the Senate to pass the cap-and-trade legislation that emerged from the House.  Instead, he said there were lots of good ideas out there and he’s willing to consider any of them — which seemed more like a way of declaring cap-and-trade dead.
But maybe the President has a more subtle strategy in mind. Here’s what New York Magazine’s John Heilemann thinks may be going on:
Lacking the 60 votes necessary for cap-and-trade, the administration plans to get behind a more modest conservation measure in the Senate, then push for a carbon pricing mechanism during the conference committee merger with the House bill — and do so during a lame-duck session after the midterms, when victorious Democrats will find it easier to make a tough vote and losing ones will be freed of political constraints.
It’s plausible. After all, the President has now gotten BP to agree to a $20 billion escrow fund. Maybe the MO of this president is, like Teddy Roosevelt’s, to speak softly and carry a big stick — make nice to adversaries in public and conceal his weapon until he gets them behind closed doors.
But if that’s his strategy it’s a curious one considering Obama’s great gift (on display especially during the 2008 presidential election) to stir the nation and mobilize it behind him.
Furthermore, given the unprecedented power of large corporations to call the shots in Washington aided by unlimited campaign contributions and platoons of lobbyists, surely the only way to advance the public interest these days is to rally Americans to a cause. Closed-door conference committees, back-room deals, and lame-duck sessions keep the public out. And when the public is shut out, the big guys have even more clout.
Yet hard-boiled Washington hands I talk with disagree. They point to the $80 billion back-room deal that bought off Big Pharma for health care. They claim there’s no other way to do business in Washington now because public opinion is too easily manipulated.
They say Machiavellian (more accurately, Emanuelian) deal-making behind closed doors ain’t pretty but the public can’t be counted on. The only way to get close to a carbon tax or anything else that’s good for America is to buy the bums off.
Maybe. But when the bums are paid off the public gets stuck with the tab. We’ll be paying far more for our drugs under the new health care law than otherwise because of the deal with Big Pharma.
The $20 billion deal with BP was also crafted in secret, and we have no way to know what assurrances were given the oil giant that might cost us later.
So too with the financial reform bill that’s now being finalized in conference committee, and with any potential energy bill where the real deals are made in the back room.
Remember the back-room deal that bailed out Wall Street? We still don’t have all the details but it’s clear the public was taken to the cleaners, and the titans of Wall Street are beaming through their bonuses.
Call me old fashioned but I still think democracy is better than corporatist negotiation. And when we have a president as articulate and thoughtful as the one we now have — more capable than almost any occupant of the Oval Office in modern times to educate the public about real challenges and real solutions — he and his advisors do a disservice to the American people when they make the important deals in secret.
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Wednesday, June 16, 2010

BP Is a Corporate Criminal

Jim Hightower at the 2008 Texas Book Festival,...Image via Wikipedia

BP Is a Corporate Criminal

Gosh, how quickly things turn. One day, you're a strutting peacock — the next day, you're just another gasping, oil-covered bird.
In early April, BP was strutting about in full corporate splendor, showing off the $9 billion in profits that it had soaked up in just the first three months of this year. It was also basking in a corporate re-imaging campaign, depicting itself as a clean-energy pioneer and declaring that BP now stood for "Beyond Petroleum."
Since its Gulf of Mexico well blew out on April 20, however, BP has proven to be beyond belief. The wider and deeper that this catastrophe spreads, the more we discover just how oily this giant is.
From the time it was known as the Anglo-Persian Oil Company and set out to grab and control the rich petroleum reserves owned by what is now Iran, BP has been a recidivist global criminal. In the past three decades, it grew huge by swallowing such competitors as Standard Oil of Ohio, Amoco and Arco. Along the way, it has been implicated in bribery, overthrowing governments, plunder and money laundering, plus having established one of the worst safety and environmental records in an industry that is notoriously reckless on both counts.
And now, its rap sheet grows almost daily. In fact, the Center for Public Integrity has revealed that the oil giant's current catastrophic mess should come as no surprise, for it has a long and sorry record of causing calamities. In the last three years, the center says, an astonishing "97 percent of all flagrant violations found in the refining industry by government safety inspectors" came at BP facilities. These included 760 violations rated as "egregious" and "willful." In contrast, the oil company with the second-worst record had only eight such citations.
While its CEO, Tony Hayward, claims that its gulf blowout was simply a tragic accident that no one could've foreseen, internal corporate documents reveal that BP itself had been struggling for nearly a year with its inability to get this well under control.
Also, it had been willfully violating its own safety policies and had flat out lied to regulators about its ability to cope with what's delicately called a major "petroleum release" in the Gulf of Mexico.
"What the hell did we do to deserve this?" Hayward asked shortly after his faulty well exploded. Excuse us, Tony, but you're not the victim here — and this disaster is not the work of fate. Rather, the deadly gusher in the gulf is a direct product of BP's reckless pursuit of profits. You waltzed around environmental protections, deliberately avoided installing relatively cheap safety equipment, and cavalierly lied about the likelihood of disaster and your ability to cope with it.
"It wasn't our accident," the CEO later declared, as oil was spreading. Wow, Tony, in one four-word sentence, you told two lies. First, BP owns the well, and it is your mess. Second, the mess was not an "accident," but the inevitable result of hubris and greed flowing straight from BP's executive suite.
"The Gulf of Mexico is a very big ocean," Hayward told the media, trying to sidestep the fact that BP's mess was fast becoming America's worst oil calamity. Indeed, Tony coolly explained that the amount of oil spewing from the well "is tiny in relation to the total water volume." This flabbergasting comment came only two weeks before it was revealed that the amount of gushing oil was 19 times more than BP had been claiming.
Eleven oil workers are dead, thousands of Gulf Coast people have had their livelihoods devastated and unfathomable damage is being done to the gulf ecology. Imagine how the authorities would be treating the offender if BP were a person. It would've been put behind bars long ago — if not on death row.
National radio commentator, writer, public speaker, and author of the book, Swim Against The Current: Even A Dead Fish Can Go With The Flow, Jim Hightower has spent three decades battling the Powers That Be on behalf of the Powers That Ought To Be - consumers, working families, environmentalists, small businesses, and just-plain-folks.
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Tuesday, June 15, 2010

Economists Are Economissed

Portrait of Dean BakerImage via Wikipedia

Surprises in Store for Economists

Some analysts are shocked that US retail sales have declined. Have they lost their grasp of basic economic concepts?

The commerce department reported that retail sales in May were down by 1.2% from April. This surprised most economists who had expected a modest increase. The media were filled with accounts of economists trying to explain why consumers were still reluctant to open up their wallets and spend in a big way. It would have been much more interesting to hear accounts of why economists were surprised.There is always a large random element in month-to-month movements in retail sales or any other economic variable. Therefore no one is ever going to be able to explain these changes with any precision. (The data are also subject to large revisions, so it is entirely possible that revised data will look very different from the report released last week (pdf).)
Nonetheless, there is little basis for the surprise shown by so many economic analysts. With few exceptions these analysts failed to see the $8tn housing bubble, the collapse of which sank the economy. Remarkably, even now they apparently cannot understand its importance.
To put it as simply as possible (so even an economist can understand it), the housing bubble was driving the economy in the period prior to its collapse, beginning in 2007. It drove the economy in two ways. The run up in house prices led to a building boom. Residential construction, which is typically less than 4% of GDP, rose to more than 6%, creating more than $300bn in additional annual demand. A bubble in non-residential real estate added perhaps another $150bn to annual demand.
The bubble also drove the economy through the effect of housing wealth on consumption. Economists usually estimate that $1 of additional housing wealth increases annual consumption by between 5-7 cents. This implies that the $8tn of housing bubble wealth would lead increase consumption by $400bn to $560bn a year.
With most of the bubble wealth eliminated by the collapse of house prices over the last three years, we should expect a sharp drop in consumption. Furthermore, stock prices have lost a bit less than a third of their value (around $6tn), which we should expect to cause a further decline in consumption. With the stock wealth effect estimated at 3-4 cents on the dollar, the decline in stock prices should have reduced annual consumption by $180bn to $240bn. In total we should expect to see annual consumption have dropped by between $600bn and $900bn as a result of the loss of housing and stock wealth.
This is all very simple arithmetic and basic economics. Consumption had been driven by the housing bubble prior to the recession. Now that the bubble has collapsed and trillions of dollars of wealth has disappeared we should expect much lower levels of consumption. To flip this around, the savings rate, which had averaged more than 8% in the decades prior to the 90s, fell to near zero in the years leading up to the recession. Now that the bubble has collapsed, we should expect consumption to fall and saving to return back to its normal level. In fact, it might even go higher since the huge cohort of baby boomers is now mostly in their 50s and most have almost nothing saved for retirement. This might lead savings rates to go above their long-term average.
There seems very little room for argument in this story. The existence and housing and stock wealth effects are among the least questioned propositions in economics. Nor is there too much dispute about their size. How could any economist see the collapse of an $8tn housing bubble and the destruction of more than $6tn in stock wealth and not expect to see a substantial decline in consumption?
Yet, we have dozens of economists being cited in newspapers and broadcast news, all saying that they are surprised by weak consumption. If anything the surprise should be that consumption is still as strong as it is. The saving rate is still near 4%, far below its historic average. Why on earth would any economist expect it to go still lower?
The reason that consumers are not spending more money has nothing to do with attitudes. The reason that most consumers aren't spending is the same reason that homeless people don't spend much money: they don't have any.
Economists used to be able to understand basic economic concepts. Apparently, most have lost this ability. As a result we are likely to see many more surprised economists and much proposed in the way of very bad economic policy.
Dean Baker is co-director of the Center for Economic and Policy Research
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