Last weekend in Singapore, President Barack Obama acknowledged that a comprehensive international climate deal will not be reached during the climate change summit in Copenhagen. While many might view this as a letdown, lowering expectations might actually be a good thing, as Matthew Yglesias notes for the American Prospect. According to Yglesias, the conference can now be framed as a relative success whatever happens, and that will keep the momentum for climate action going after Copenhagen.
On Friday, we learned that the U.S. unemployment rate officially broke 10% for the first time since the early Reagan years. This is about as bad as it gets for a modern, developed economy. No economic force takes a heavier toll on a society than rampant joblessness, and few personal setbacks take a deeper psychological toll than being out of a job for months on end. If Congress and President Obama don't do something to create jobs fast, both are going to pay a hefty political price when next year's mid-term elections roll around.
So how bad is it? In October, the economy shed 190,000 jobs and the unemployment rate jumped from 9.8% to 10.2%. That percentage is the most optimistic reading of the labor market in Friday's report. If you take people who want full-time jobs but are settling for part-time work, then add those who have simply given up on finding a job, the rate is a massive 17.5%.
The problem is not that either Obama or Congress have failed to act on the problem, but rather that they have not done enough. When Congress was moving on Obama's $787 billion economic stimulus package back in February, we were shedding upwards of 700,000 jobs a month. So the stimulus package has worked-it's probably helped keep unemployment from jumping to 12% or 13%. But this is cold comfort to the nation's 15.7 million unemployed, 5.6 million of whom have been out of a job for more than six months.
As Robert Reich notes for Salon, Obama's economic advisers dramatically underestimated how bad things would get when they crafted the stimulus package. As a result, the package was too small and unemployment has remained high. Obama needs to go back to Congress and demand more economic relief funding. Republicans will continue to whine about government spending to excuse their obstructionism, of course, and conservative Democrats will probably start sweating, too-Sen. Ben Nelson (D-NE) helped cut back the original stimulus bill in February to help boost his "centrist" credentials. This of course had nothing to do with economics or policy. Government spending is what saves the economy in a recession. In a downturn as severe as this one, it takes a lot of spending to turn things around.
But as Reich notes, Nelson and his cohorts will have a lot more to worry about in the 2010 elections if the economy doesn't actually improve over the next year. And few economists think it will. The Congressional Budget Office, which is run by a conservative economist named Douglas Elmendorf, projects an average unemployment rate of over 10% in 2010. That's worse than this year. Democrats from swing districts need to support economic relief packages. Continued economic malaise will severely hurt them at the polls.
Congress finally took some action on joblessness on Thursday, voting to extend unemployment benefits for an additional 14 weeks. If we want the economy to recover, we need people to spend money, but if people aren't working, they don't have any money to spend. So the government cuts people checks to help them get by and stimulate a demand for goods and services. Even most conservative economists thinks this is a good idea.
But as Kevin Drum notes for Mother Jones, the soundness of the policy did nothing to prevent Republicans from fighting the effort to extend benefits tooth-and-nail. The bill had to overcome three-that's right, three-filibusters in the Senate from Republicans, who held up the bill for weeks for no apparent reason. In a blog post for The Washington Monthly, Steve Benen explains the economic cost of this obstructionism: In the weeks of delay, 200,000 people looking for work stopped receiving benefits.
But extending unemployment benefits will not solve our economic woes. The total program is just $2.4 billion, a drop in the bucket compared to the trillions of dollars the government put up to salvage Wall Street. $2.4 billion is not enough to reverse the unemployment trend. Cutting the checks certainly helps, but as Matthew Rothschild emphasizes for The Progressive, we need an economic policy that actually puts people back to work. We've known for months that the stimulus was too small and watched the labor market continue to deteriorate. We need more than tweaks at the economic margins, we need a robust job creation plan.
As Stephen Franklin notes for Working In These Times, we already know that the recession has created a significant jump in the nation's poverty rate. According to official government statistics, the rate climbed from 12.5% to 13.2% in 2008, the largest increase since 1991. But the National Academy of Science thinks the government statistics are misleading, as they account for rising costs associated with medical care, transportation, child care and different regional living standards, as Franklin notes. Taking these factors into account, the National Academy of Sciences calculates the actual poverty rate to be 15.8%. That's an additional 7 million people living in poverty, for a total of over 47 million. That's more than the entire population of the New York, Los Angeles, Chicago, and Philadelphia metropolitan areas combined. What's worse, we don't have poverty statistics for this year, when the most severe economic damage was been dealt.
Workers are facing tough economic prospects around the world. Writing for The Nation, Kristina Rizga details Latvia's economic turmoil. Just like the US, overexcited bankers in Latvia inflated a massive real estate bubble that took down the entire economy when it burst. But with the bubble burst, much of the country is now out of a job and stuck with a mortgage worth far less than what they paid for it. It's almost exactly the same story we've seen at home.
No domestic economic problem is more pressing than our epic levels of unemployment. We need another round of stimulus to get people working again. If not, we'll see the same public unrest here as in Eastern Europe.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Senate Democrats in the Environment and Public Works Committee (EPW) finally squelched Republican boycotts and passed a version of the climate bill yesterday morning. Last week, Republican Senators refused to show up to committee hearings in an attempt to stall the bill. Brian Beutler of Talking Points Memo notes that EPW has now set "the stage for other panels to amend the legislation."
The House released a final version of the health reform bill. It has a public option all right, but not the robust version progressives were hoping for. The public plan would only cover 2% of Americans and premiums will cost more than anticipated.
Meanwhile, Sen. Joe Lieberman (I-CT) continued to threaten to join a Republican filibuster of a health care bill with a public option. A lot of people still think he's bluffing. Realistically, the public option probably faces more serious threats from inside the Democratic caucus. It's been whittled down at an alarming rate.
Nick Baumann of Mother Jones asks "What now for the public option?"
The Congressional Budget Office has estimated that public option premiums will actually be higher than the premiums for private plans on the health insurance exchanges. That doesn't mean it's going to cost the government more money-the public option is paid for by premiums, not taxes; it actually cuts the deficit. But it will be more expensive than some private plans. Wasn't part of the point of the public option to prove that a government-run program could compete successfully with privately-run plans? Well, yes, but here's the problem: that was all based on the idea that the public option would pay health care providers at Medicare rates.
Baumann predicts that insurers will do everything they can to drive the sick people off private insurance onto the public plan, a phenomenon known as "adverse selection." Hopefully some of the proposed insurance reforms will curb their worst excesses, like kicking people off the rolls for misspelling their preexisting conditions on their application forms.
Mike Lillis of the Washington Independent reports that the House health care bill would eliminate the popular and cost-effective Child Health Insurance Program (CHIP) and shift its low-income beneficiaries onto private health insurance exchanges.
This looks like a stealthy preemptive strike on the prospect of single-payer health care. CHIP is a single-payer program that progressive health policy types envisioned as a prototype for a future single-payer system for all kids, or even eventually for everyone.
As Lillis points out, abolishing CHIP is also a gimme to insurance companies. Generally speaking, kids are cheap to insure because they're healthy. Private insurers would love to stock their risk pools with kids on federal subsidies. It's like getting paid to stock your pond with delicious trout. We worry about adverse selection making the public plan more expensive. Well, CHIP is the reverse of that because this public program is keeping the good risks for itself.
Suzy Khimm argues at TAPPED that killing CHIP could be a good thing, provided the kids continue to enjoy the same legal protections that they get under the public plan. Khimm suggests that moving low-risk kids into insurance exchanges could help keep costs down for everyone by making the risk pool healthier on average:
That being said, if CHIP's dismantling ended up moving more folks into the health-insurance exchange, it wouldn't simply be a boon for "the insurance lobby and moderate Democrats." It could strengthen one of the most fundamental parts of the Democratic reform package -- a robust insurance exchange with a pool of participants that's large enough to drive down costs precisely because insurance companies have an incentive to jump in and compete for customers. Moreover, folding CHIP into the exchange would add a younger, healthier pool of participants to the exchange, offsetting its potential of becoming a dumping ground for the sick and elderly. Finally, CHIP has always suffered from under enrollment -- about 6 million children aren't insured in the program who should be -- and by bringing whole families in under the same plan, more children will be covered.
That's a nice idea, but it seems foolish to scrap one a popular and successful social program in favor of an untested insurance exchange system.
The frustrating thing about so-called health care reform is that legislators don't really want to change the system. They want to make the system work better while catering to all the established interests that made it suck in the first place.
Politicians aren't the only ones to balk at fundamental change. The Real News Network interviews Sam Gindin (video below), a former assistant to the Canadian Auto Workers Union, now a professor at York University. Gindin says that, over the years, labor conceded too much on health care and thereby failed to reestablish itself as a leading force for progressive change in the United States. Helping elect Barack Obama was a step in the right direction for labor, he maintains, but it's not nearly enough.
As John Nichols of the Nation put it, when the House finally wrote the bill, the compromise was even more compromised than expected.
This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
The U.S. economy has diverged: Wall Street is living high on the hog, while everyone else is struggling. The Dow Jones Industrial Average eclipsed 10,000 for the first time since last October this week, even as unemployment continues to spiral out of control. And while President Barack Obama has taken some very real steps to help ordinary people, his administration's efforts to save Wall Street have far outstripped their support of workers.
Matthew Rothschild details these disparities for The Progressive. Regulatory reforms are moving through Congress at a snail's pace and the wreckage from the mortgage bubble is increasing. Wage cuts are more widespread today than in any era since the Great Depression, even as bankers capitalize on taxpayer bailouts to score epic profits and outsized bonuses.
"One economy is for the rich and the upper middle class," Rothschild writes. "The other economy is for everybody else."
So how can a few big banks make so much money while the rest of the economy suffers? As Kevin Drum explains for Mother Jones, the kind of banking that helps the economy is a pretty simple business of taking deposits and making loans. But a lot of what we now call "banking" really just consists of making bets on just about anything you can dream up.
"Banks aren't using all this cheap money to increase lending. They're using it to fund bigger and bigger bets in the fixed-income sector - the same sector that brought us junk bonds, credit default swaps, subprime loan securitization, interest rate carries, collateralized debt obligations, and all the rest of Warren Buffett's 'financial weapons of mass destruction.'"
The banks, in other words, are gambling with taxpayer money. A host of big finance companies have reported earnings in the past week, and the numbers are ugly: JPMorgan Chase reaped $3.59 billion in third-quarter profits and Goldman Sachs is planning to payout $23 billion in bonuses from speculative trading, while Bank of America and Citigroup are hemorraging money on mortgages and credit cards. The Wall Street casino is alive and well, but anything that is actually tied to the real economy is a disaster.
According to a new report from the U.S. Treasury, lending among the largest recipients of the Troubled Asset Relief Program fell by 17% from July to August. Small businesses can't cope with the cutoff in financing. A lot of businesses stay profitable over the long-term by borrowing money to meet short-term expenses. A baker can borrow money to buy flour and pay the bank back when she sells her bread. With bank lending on ice and consumers cutting back on spending, many small businesses are failing. Thousands more will be at risk in the next couple of years while unemployment remains elevated.
Writing for Salon, former Clinton Secretary of Labor Robert Reich notes that these economic struggles are not reflected in major stock indices. Stock are soaring as big corporations who don't need bank loans score short-term profits from cost-cutting, i.e., mass layoffs. Obviously, this strategy can't work for very long. When millions of Americans are out of work, they can't afford to buy the things companies make.
There's an important lesson in our current economic state-of-affairs, as Katrina vanden Heuvel emphasizes for The Nation. The bailout has not done what Henry Paulson told us it would do. To be sure, it saved the banks-- even the strongest banks would have failed last fall without extraordinary government support. But it has not increased lending and kept the economy from disaster. The Obama administration, which has extended the Bush administration's support for bank balance sheets and bonus checks, is facing a political nightmare if it doesn't show produce some stronger economic results for ordinary citizens.
"Heading into 2010, the Obama administration must put itself back on the side of working people," vanden Heuvel writes.
The administration must address two critical problems in order to restore the nation's economic credibility. Putting the unemployed back to work is at the top of the list. Anything that saves jobs will help, including aid to states to keep teachers and cops on government payrolls and tax credits for companies that hire new full-time workers.
Something must also be done about the foreclosure epidemic. Nothing underscores our economic disparity like continuing housing mess, which has been in full-blown crisis mode since 2006. Despite a multi-trillion-dollar bank bailout, foreclosures are surging to all-time highs. Writing for The American Prospect, Tim Fernholz details the prolonged problems with the Obama administration's current foreclosure relief program.
While millions of troubled borrowers are eligible for the plan, which reduces monthly mortgage payments to affordable levels, foreclosures are still outpacing loan relief efforts by more than two-to-one.
Banks are dragging their feet and the administration has imposed no penalties on lenders who don't live up to the program's standards. Instead, the Treasury Department is offering banks cash incentives to keep people in their homes. Bank of America, which has received $45 billion in direct government bailout funds, plus hundreds of billions in government guarantees and other perks, has modified merely 11% of the mortgages it controls that are eligible for the plan.
Fernholz offers several potential improvements to Obama's foreclosure relief plan, including more aggressive government policing of the current plan and allowing foreclosed homeowners to continue to live in their homes as renters. With up to 12 million foreclosures projected by the end of 2012, just about anything the administration does will help.
The economy is a measure of social well-being, not a stock market index or a corporate earnings statement. Policymakers need to prove they can respond to the very real needs of all their citizens, not just those with financial clout.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
The economy is still getting worse. Foreclosures are surging above last year's epic highs and the unemployment rate marches upwards every month. As the misery grinds on, Wall Street lobbyists and their allies in Congress are pushing hard to distract the public from the real causes of the current global economic crisis. Corporate America is trying to pin the blame for our empty pocketbooks on President Barack Obama and the phantom socialist menace, and cable news pundits are taking the bait.
As David Korten explains in a blog post for Yes!, this surge of distractions is a conscious political strategy designed to sabotage reform. "Wall Street's greatest fear is that the public might demand Congress and the president shut down the casino," Korten writes. "Any issue that shifts attention away from Wall Street and pins the blame for job loss and mortgage foreclosures on President Obama works in its favor."
The banking lobby is kicking and screaming over President Obama's plan to overhaul consumer protection in finance. As a result, the battle over the proposed Consumer Financial Protection Agency (CFPA) has become the most heated economic controversy in the nation's capital, even though the issue isn't controversial where ordinary citizens are concerned.
The existing hodgepodge of bank regulators completely failed to stand up for consumers as the housing bubble grew and burst. Our current bank regulators are charged not only with consumer protection, but safety and soundness regulation, which basically means making sure that banks don't fail. Preventing bank failures often means protecting bank profits, even when those profits come at the expense of communities. Instead of relying on the same inept and conflicted agencies, consumer regulation of credit cards, mortgages, student loans, payday loans should be funneled into a single, new agency with no other priorities: The CFPA.
As Greg Kaufmann details for The Nation, recent economic history isn't stopping Wall Street's favorite lawmakers from pushing against the CFPA. Kaufmann highlights some of the most outrageous comments from a hearing on the CFPA last week. Rep. Jeb Hensarling (R-TX) claimed that if the CFPA had existed a few years ago, there would be no ATMs or frequent flyer miles. David John, a researcher from the Heritage Foundation, said that employees of the new agency would spend too much time trying to find their new desks to actually do any regulating. Bank lobbyist Ed Yingling tried to erase the last ten years with his claim that "no real case has been made" for better enforcement of consumer protection in banking.
These are not serious arguments. They are intentional distractions designed to kill an obviously productive policy. Kaufmann's headline says it all: "Do They Take us for Schmucks?"
But loudmouth Republicans like Hensarling aren't the only politicians we need to keep tabs on. Plenty of lawmakers on the Financial Services Committee won't stand up and make crazy speeches about ATMs, but will still go to bat for Wall Street behind the scenes. As I emphasize in a piece for AlterNet, with outsized Democratic majorities in both chambers of commerce, conservative, pro-Wall Street Democrats pose just as great a threat to our economic security as loony Republicans.
If you think that sounds pessimistic, consider Ralph Nader, who Matthew Rothschild profiles in The Progressive. Nader knows corporate America has its hands on nearly every lever in the U.S. political system. Lobbyists don't just hurl money at lawmakers, they spend tremendous sums on misleading advertisements to sway public opinion. Rothschild quotes from a recent speech Nader gave on his current book tour. He argues that progressives don't just need concerned citizens on our side. They need concerned citizens with money to counter the flood of corporate cash in the political system.
"There is a poignance in listening to Ralph Nader these days," Rothschild writes. "Here is a man who, for the last 45 years, has hurled his body at the engine of corporate power. He's dented it more than anyone else in America. But he knows it's still chugging, even more strongly than ever."
Even when lawmakers talk tough about Wall Street, it's not obvious what's really going on. Senate Banking Committee Chairman Chris Dodd (D-CT) recently rolled out an extremely ambitious plan to overhaul the bank regulatory system. It has very little common ground with Obama's plan, and in some respects would be an improvement. Obama's plan is very strong on consumer protection and not much else. But Dodd's plan is so ambitious, it seems like a politically impossible waste of time, one that could easily delay reforms into next year. Dodd wants to consolidate all four bank regulators into a single agency to prevent a race to the bottom and strip the Federal Reserve of all of its regulatory responsibilities. They aren't bad ideas, but they have absolutely no political momentum. Dodd has been holding hearings on the financial crisis since 2007-- he could have started pushing for this plan a long time ago. By introducing it so late in the process, major legislative delays seem inevitable. The longer it takes to pass a regulatory bill, the more time the bank lobby has to water it down. Writing for Mother Jones, Nick Baumann suggests this may be exactly what Dodd intends.
"Maybe getting it done by 2010 isn't the point. Dodd is up for reelection that November. If he manages to win by talking populist while raising money from Wall Street, he'll have plenty of time afterward to figure out what to do next."
For now, the economy is still absolutely horrible. Writing for In These Times, David Moberg translates the statistics from the government's most recent unemployment report and deciphers some recent polling on the economy. Things are bad, and people know it. Many economists believe the recession may have technically already ended. The Gross Domestic Product, a statistical measure of the country's economic output, may no longer be declining. But the unemployment rate keeps going up. It was 9.8% at the end of September.
Moberg notes that if the rate counted the long-term unemployed who have given up looking and people who want full-time jobs but settled for part-time work, the unemployment rate is a staggering 17%. Over one-third of the 15.1 million would-be workers encompassed by the 9.8% unemployment rate have been out of a job for at least six months. Voters overwhelmingly believe that government policies have helped Wall Street, while just 13% think the government has given a lot of help to the average working person.
Economics and politics are inextricably linked. To strengthen our economic foundation, we need policymakers who are willing to stand up to corporate America and corporate media and serve the citizens who elect them.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Major utility corporations, like Exelon, California's Pacific Gas & Electric Co. (PG&E) and New Mexico's PNM have announced that they are leaving the U.S. Chamber of Commerce because of the organization's controversial stance toward climate change and opposition to a clean energy bill. The Chamber represents business interests, and according to a New York Times editorial, "no organization has done more to undermine [climate change] legislation."
Yesterday, the powerful Senate Finance Committee met to debate two amendments that would have inserted a public option into the committee's health reform bill. Both amendments were defeated as key Democrats sided with Republicans and the insurance companies. David Corn of Mother Jones diagnoses what ails Senate Democrats. It's split personality disorder: "They are the best friends of the health insurance industry. They are fiercest foes of the health insurance industry."
Sen. Jay Rockefeller's (D-WV) strong public option amendment was defeated 15-8 because senators Max Baucus (D-MT), Kent Conrad (D-ND), Blanche Lincoln (D-AR), Bill Nelson (D-FL), and Tom Carper (D-DE) joined the committee's ten Republicans. In the next round of voting, Nelson and Carper backed Chuck Schumer's (D-NY) amendment, but Baucus, Conrad and Lincoln stuck with the GOP and voted it down. Ironically, as Corn observes, the Senate Democratic communications team was busy emailing blistering indictments of the insurance industry while key members of the caucus were doing the insurers' bidding.
John Nichols of The Nation worries that yesterday's defeat is a sign that Congress is backing away from a public option, which was itself a compromise alternative to a single-payer, Medicare-for-all type system:
Baucus, the insurance-industry representative who doubles as a Democratic senator from Montana, long ago rejected the notion that a robust public option might be a part of any healthcare reform measure that would pass the Senate.
The Senate Finance Committee went on to add tens of millions of dollars for discredited abstinence-only propaganda for teens, as Mike Lillis of the Washington Independent reports. Well, at least pseudoscience has a public option. If kids can learn this nonsense for free at school, maybe they'll ditch church, where you have to put your money in the collection plate to hear the sermon.
Chris Bowers of AlterNet argues that a public option still has 51 votes in the Senate. Which means that the Democrats could still pass a healthcare bill by majority vote in the upper chamber, if they decided to forgo their quest for a filibuster-proof 60 and pass the bill through budget reconciliation.
Sen. Tom Harkin (D-IA), chair of the Health Education Labor and Pensions Committee, claims to have the votes to pass a plan with a public option, Lynda Waddington reports in the Iowa Independent. Harkin believes that the full Senate should have the opportunity to vote on the public option, considering that it's part of four out of the five bills that have been approved so far.
The fight for a public option isn't over yet. To date, all of the other health reform bills that are out of committee include a strong public option. The next step is putting these bills together to create the final legislation for the House and Senate to vote on.
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The economic free-fall is finally slowing down, although nobody expects the recovery to be very pleasant. Job losses and foreclosures are expected to increase well into next year. But even if our economic system gets back to normal, it's important to remember that gross inequalities are embedded in the global order. At home, minorities face significant barriers to economic security, while abroad, children in poor countries are denied access to basic nutrition. This is especially disheartening in the wake of the G-20 meeting in Pittsburgh, which demonstrated that the world's economic leaders are more focused on bailing out banks than eradicating global poverty.
Robert Reich sums up the domestic economic scenario succinctly for Salon. The stock market is humming along, even as most Americans are tightening their belts. It's a counterintuitive situation: Wall Street is celebrating an economic recovery, but the consumers that drive our economy are still cutting back. Reich explains that the government has stepped in to fill the hole caused by consumer spending. Business executives may scream "Socialism!" when the tax man comes around, but without massive government help, those same CEOs would be watching their earnings and companies collapse.
Without the jobs and tax cuts created by President Barack Obama's economic stimulus package, we'd see more red ink from just about every industry. The entire U.S. mortgage market is currently supported by the federal government via Fannie Mae and Freddie Mac, while other special initiatives like the Cash for Clunkers program brought the auto industry out of its recession-induced coma this summer.
The trouble is, while a few programs have been good for ordinary citizens, most of the government's economic salvage operations are aimed at giant corporations. Of all the paradoxes in today's economy, the most significant can be found in the financial sector. Bank stocks are up, even though banks are in serious trouble. Their customers are broke, foreclosures are soaring, and analysts are predicting a fresh round of multi-billion-dollar losses on commercial real estate loans soon. So what makes an investor want to buy a bank stock right now? Nothing but the government's limitless willingness to bail out banks.
How much bailout money did the government actually spend? We've all heard about the $700 billion Troubled Asset Relief Program (TARP), but the real haul for bankers is much, much bigger, as Nomi Prins and Christopher Hayes detail in a piece for The Nation. A whopping $17.5 trillion has been dedicated to subsidies, guarantees, below-market-rate loans, and other special perks for the financial industry. That's roughly one-fourth of the entire global economic output for a full year, and more than the entire annual productivity of the U.S.
Prins and Hayes make use of a clever thought experiment: What if, instead of spending the money on big institutions, the money had gone to a small-time gambler? It's an apt comparison. Taxpayer money went to financial speculators who used our homes and neighborhoods as poker chips in a global casino. The dozen or so bailouts the government has enacted seem absurd when we think of them as cheap financing for bets on the craps table. The number of programs is staggering. Bank executives love to proclaim that their banks didn't really need TARP money, they just accepted it because the government wanted them to. Next time you hear that boast (sometimes it sounds more like a whine), remember that every big bank in the country issued debt guaranteed by the government, then scored ridiculously cheap loans from the Federal Reserve while others got federal help through AIG, Fannie and Freddie.
"A fraction of the $17.5 trillion bailout could have been used to cut the principal of homeowners' mortgages (using homes, even devalued ones, as collateral) and cover student loans at zero percent interest," Prins and Hayes write. "Rather than pouring it into the top layers-the banks-a people's bailout would have cost less and been more humane. And it likely would have prevented the ongoing increase in defaults, foreclosures and general economic anxiety."
There are very good reasons to maintain a healthy financial sector, but only if banks actually do something useful. Banks are supposed to lend money to enable socially productive economic activity. This bailout money has not been spent on anything socially productive. Instead, it's covered losses from predatory lending and boneheaded speculation.
The dominant cause of the recession was the collapse of an $8 trillion housing bubble, which banks helped inflate with all outrageous loans. For decades, the value of a family's house was the foundation of most American middle-class wealth. When home prices took a nosedive, so did the spending power of every homeowner. Even borrowers who had affordable mortgage payments were hit hard. For borrowers stuck with expensive, predatory mortgages, the result was a wave of foreclosures. Writing for Mother Jones, Andy Kroll highlights a hard reality: Recovery in the housing market will not lead to middle-class financial security. It will be at least a decade before home prices reach pre-crash levels.
It's critical to remember how the recession is deepening existing inequalities, particularly along racial lines. In a post for In These Times, Michelle Chen explains how African Americans and Latinos are consistently paid less than whites during boom times, and are pushed even further down the ladder when things go bust. Communities of color are more likely to be targeted by predatory lending, which can devastate entire neighborhoods for generations. That means people of color are more likely to be foreclosed on, more likely to be laid off, and less likely to have access to basic necessities like health insurance.
The statistics are stark. In a story for New America Media, Christina Fernandez-Pereda, notes that while the overall unemployment stands at 9.7%, for minorities, the actual number is much higher. A full 15.1% of Blacks are unemployed, while unemployment among Asian Americans has doubled since early 2007. A full third of Latinos between the ages of 16 and 29 are unemployed.
The bank bailout has done nothing to improve the status of the global poor. The G-20 made grand promises to help those who need it most in developing countries this year, but so far, the talk has resulted in very little action. As Hayley Hathaway explains at Sojourners, only $50 billion has been dedicated to the 78 countries where humanitarian risk is greatest. As Hathaway notes, that's less than 25% of the TARP money received by the 20 largest U.S. banks.
Without major action, between 1.4 million and 2.8 million children will die of malnutrition in the next five years. Instead of pushing major humanitarian aid, the G-20 has promised $750 billion to the International Monetary Fund. The IMF was supposed to act as an international lender of last resort-if a nation's financial woes got really bad, they could get a loan from the IMF while they restructured. But IMF money ends up flowing to private-sector banks, and governments in need are forced to cut spending on programs that help the poor. When the G-20 met in Pittsburgh last week, a major topic of discussion involved giving developing nations a greater voice in IMF policies. But despite this talk, wealthy nations remain committed to the status quo, protecting the interests of their bankers eyeing future international bailouts.
For most people, it will be a long time before our economic recovery is a reality. But as the economy crawls out of the ditch, it's critical to build our future on a stronger foundation, one where we don't allow millions children to starve and where skin color does not determine economic security.
Last night, President Obama laid out his vision for health care reform before a special joint session of Congress. The pillars of his plan are: i) Curbing the worst abuses of private insurance, ii) Requiring everyone to have insurance, iii) Insurance exchanges, which are basically government websites where customers can order insurance off a "menu" of plans, the idea being that if tens of millions of people order the #2 Combo, everyone's lunch will be cheaper.
The president made it clear that the country can't afford to wait for reform. Last night, he took on the self-proclaimed fiscal conservatives who claim that they oppose reform because it would increase the deficit. "Put simply, our health care problem is our deficit problem. Nothing else even comes close," Obama said. The president reminded the audience that each of us pays a "hidden tax" of $1000 dollars a year to subsidize charity and emergency care for the uninsured.
It was an impressive performance, but as John Nichols of the Nation observes, it was hardly a rousing, "to-the-barricades" oration:
Obama still talked about "options" and "choices." But he suggested that they would be offered mainly by insurance companies that would be enjoy "incentives"-i.e., new streams of taxpayer dollars-if they agree to abide by consumer-friendly regulations and come up with strategies for covering more of the uninsured.
The president expressed support for a very limited public option, a kind of welfare program that only about 5% of Americans would choose to join. This is not the public option his liberal supporters had in mind. It's non-threatening to the insurance companies, though. Private insurers love the idea of the government low-grading the insurance pool and taking on the sickest people who can't get coverage anywhere else. That means private insurers can make even more money off the remaining healthy, paying customers.
James Ridgeway of Mother Jones is even less optimistic, "As for the public option, that's pretty clearly gone down the drain."
One GOP legislator decided that a joint session of Congress was basically a town hall with the president. Rep. Joe Wilson (SC) screamed "You lie!" when the president explained, for the umpteenth time that undocumented immigrants will not be covered. As with the town halls, Wilson's performance had a whiff astroturf about it. Sure enough, Sue Sturgis of Raw Story found that Wilson pocketed over $2 million in campaign contributions from the health care industry.
The president also reminded America that health care reform will not pay for abortions. (For more on myth-making around women's health, see Laurie Rubiner's excellent post at RH Reality.)
Instead of presenting a vision and asking Congress to line up behind him, the president stressed that he was synthesizing a compromise position incorporating ideas from the left and the right. Instead of a coherent vision, the president's scheme sounds more like a last-ditch compromise plan to enable him to declare victory. Like many Democrats, the president seems to be confusing the strategic with the expedient. If "reform" means saddling ordinary Americans with expensive mandatory insurance without a meaningful public option to keep costs in check he could doom the electoral fortunes of the Democrats for years to come.
This post features links to the best independent, progressive reporting about health care and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on health care affordability, health care laws, and health care controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
Ed. note: The Weekly Pulse is becoming the Daily Pulse for September. Every weekday, we'll bring you highlights from the health care reform debate, including exclusive video interviews with leading experts and independent journalists each Friday. Even better, you can be a part of the conversation. Stay tuned to find out more!
A power shift is underway in Washington. Massachusetts governor Deval Patrick announced on Monday that a special election to replace the late Sen. Ted Kennedy would not take place until January 19, 2010. With Kennedy's seat empty, the Democrats no longer have the 60 votes they need to break a filibuster in the Senate. Up until this point, the White House was hoping for a compromise bill that the entire Democratic caucus, and maybe even a few Republicans, could agree on.
Steve Benen of the Washington Monthly notes that the Gang of Six has made itself irrelevant. These powerful members of the Senate Finance Committee were in charge of hammering out a bipartisan health care bill. They forgot that they were only powerful if people believed a bipartisan compromise was attainable.
Talking Points Memo reports that the White House has given up on Republican gangster Sen. Mike Enzi (R-WY). They finally got the hint when Enzi told a radio listeners that Democrats wanted to kill the elderly with comparative efficacy research. The White House should have cut its losses two weeks ago when Sen. Chuck Grassley (R-Iowa) repeated the "death panel" meme at a town hall meeting. Grassley has also been raising money campaigning against "Obama-care."
It's looking more and more like the Democrats will have to look to budget reconciliation, a special parliamentary procedure that could sidestep a filibuster and pass a healthcare bill by a simple majority vote.
America's Health Insurance Plans, the industry's top lobby group, dispatched 50,000 employees to town halls to fight the public option. Stephanie Mencimer of Mother Jones took a cue from Michael Moore in Sicko. She asks AHIP what kind of insurance their top lobbyist has. Mencimer says AHIP was so standoffish you'd think she had a preexisting condition.
In Mother Jones, Ben Buchwalter and Nikki Gloudeman take a closer look at the corporate megabucks behind the town hall brawls. Corporate enemies of healthcare reform are using front groups like FreedomWorks to organize angry mobs at town hall meetings. Zach Roth of TPM Muckraker reports that "legendary GOP bamboozler" Howard Kaloogian has launched a tea party bus tour to protest healthcare reform.
Speaking of frauds, you've probably heard about so-called crisis pregnancy centers that pose as abortion clinics in order to cajole women into having babies. Ever wonder what happens to those babies? In the Nation, Kathryn Joyce goes inside the world of high-pressure Christian adoption agencies that support desperate women, as long as they promise to give up their babies.
This post features links to the best independent, progressive reporting about health care and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on health care affordability, health care laws, and health care controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net.
This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
Our throwaway economy is largely to blame for our environmental woes, as Lester Brown points out for Grist. First introduced after World War II to stimulate growth and create more jobs, throwaway products offered consumers convenience. Soon, disposable paper towels replaced hand towels, tissues replaced handkerchiefs, and plastic diapers replaced cloth ones, eventually building up an overwhelming amount of garbage. Throwaway products create a multitude of problems, including maxed-out landfills, air pollution and depletion of limited resources. Instead of hunting for new places to stash our trash, we should focus on consuming less altogether. But in the midst of an economic crisis, can we transition to a sustainable economy?
One of healthcare reform's greatest champions died last night. Sen. Edward Kennedy (D-Mass.) succumbed to brain cancer at the age of 77. During his 46-year career in the senate, Kennedy's name appeared on virtually every major piece of progressive legislation from civil rights to economic justice, to healthcare. Kennedy called healthcare reform "the cause of my life."
Jack Newfield of The Nation remembers Kennedy as the senate's fighting liberal, the "best and most effective senator of the past hundred years."
We are left with weak, squabbling, visionless Democratic puppets and a President whose domestic reform policies are adrift-sliding towards the horizon with each passing day.
The loss is a blow to healthcare reform. Alex Koppelman of Salon notes that with Kennedy's passing, the Democrats have lost one of their most effective bipartisan deal-makers. Democrats will also be down a vote in the senate for the foreseeable future because Massachusetts state law doesn't allow for the appointment of an immediate replacement.
Naturally, with congress on vacation, wackos are rushing in to fill the media vacuum. Eric Boehlert asks in AlterNet why Republicans the only ones allowed to get angry about healthcare reform, or anything else. He notes that in 2003, the media decided that Howard Dean was too angry for prime time. During the Republican National Convention in 2008, SWAT teams were sent to raid the homes of suspected anarchist protesters. And yet, conservative demonstrators in Arizona are allowed to tote rifles just outside the security perimeter of a presidential event.
RNC Chair Michael Steele raised eyebrows by championing single-payer healthcare in an op/ed in the Washington Post framing the GOP as defenders of Medicare.
Odd that Steele has so much love for Medicare, but none for the nation's other leading source of government-run healthcare, the Veterans Administration (VA). This week, Steele accused America's other leading public insurance provider of encouraging veterans to commit suicide, based on a booklet published by the VA which explains living wills, advanced directives and other key concepts in end-of-life care, Rachel Slajda reports for TPM DC.
Progressives have been doing a great job debunking the death panel and death book myths, like this creative photo essay from TPM. But we're scarcely addressing the misconception that underlies them: The idea government-administered health insurance is inherently more prone to rationing than private health insurance.
Newt Gingrich and other prominent opponents of reform claim that a public option will restrict choices and deny care. What they don't say is that for-profit insurance is rationing. When your insurance company covers an old drug for your condition, but not a new one with fewer side effects, that's rationing. The company is restricting your treatment choices to improve its bottom line. When an employer or an insurer decides not to cover mental health care, that's rationing. The entire business model is predicated on charging people more and giving them less care so there's more money left over for the stockholders.
No health insurance can cover every treatment, no matter who runs it. But public insurance has two major advantages: 1) Public insurance tends to be cheaper to administer; 2) The tough choices about what to cover are ultimately in the hands of the voters, not health insurance bureaucrats with an eye on the bottom line.
The whole town hall concept is turning out to be a strategic blunder for the White House. The format makes legislators and the media sitting ducks for extremists and astroturfers who want to paint themselves as typical citizens. As Sandy Heierbacher of the National Coalition for Dialogue and Deliberation writes in YES Magazine:
[T]he town hall design sets the stage for activist groups and special interest groups to try to 'game' the system and sideline other concerned citizens in the process. As Martin Carcasson, director of Colorado State University's Center for Public Deliberation, recently pointed out, "the loudest voices are the ones that get heard, and typically the majority voices in the middle don't even show up because it becomes a shouting match."
How much more clear can the Republicans be? They are not interested in bipartisanship. Sen. Chuck Grassley (R-Iowa), supposedly the Senate's leading reasonable Republican on healthcare, couldn't even be bothered to rebuke a town hall participant who hinted about assassinating the president, as Raw Story reports.
If the Democrats want healthcare reform, they are going to have to go it alone. Let's hope they pass a bill that would make Sen. Kennedy proud.
This post features links to the best independent, progressive reporting about healthcare and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net.
This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
Will healthcare reform include a public health insurance plan to compete with private health insurance? President Obama campaigned on the promise of a public option, but over the past week he and his top advisers have repeatedly signaled that they aren't willing to fight for it.
On Saturday, Obama told a town hall meeting in Colorado: "Whether we have it or we don't have it, [the public option] is not the entirety of health care reform. This is just one sliver of it, one aspect of it."
"I don't understand why the left of the left has decided that this is their Waterloo," an unnamed senior White House official gripes in this morning's Washington Post.
The White House is sorely mistaken if it thinks that the public option belongs in the "nice but not necessary" category. Josh Holland of AlterNet explains why the public option is the pillar of healthcare reform. Without it, there's little hope of containing costs or reigning in the power of insurance companies:
It may be just one "aspect" of health reform, but without it, the legislation promises to be a massive rip-off; a taxpayer give-away of hundreds of billions of dollars to an unreformed 'disease care' industry.
The industry would get millions of new customers thanks to generous government subsidies and a law requiring that (almost) everyone carry insurance. And that windfall would come without the structural changes needed to bend the medical "cost curve" in years to come -- without any provisions that might endanger the industry's bottom line.
In Salon, Robert Reich agrees. Competition between private insurance companies and the public option is the only hope to controlling costs. A public plan could bargain with providers to reduce costs and pass the savings on to taxpayers. The private insurance industry would have to slash its prices to compete.
Without a public option, "reform" would likely involve subsidies to private insurance companies, temporarily dulling the pain as premiums rise unchecked. That's the worst of both worlds.
Progressives shouldn't be surprised at the White House's noncommittal stance, though. Obama campaigned on a public option, but he has always framed it a darned good idea, not as a non-negotiable demand.
Why is it so difficult to get a healthcare bill through the Senate with the supposedly filibuster-proof majority? The simple answer is that the Dems need 100% of their delegation to cooperate in order to break a filibuster. So, the Democrats have 60 seats in the Senate but no way to advance their agenda without capitulating to the conservative Blue Dogs. The Republicans can be counted on to filibuster whatever the Democrats come up with. Which means that conservative Democrats like Sen. Max Baucus (D-Mont.) hold the balance of power.
As Ari Melber of The Nation explains, Baucus and his Republican counterpart Sen. Chuck Grassley (R-Iowa) also rule over the powerful and conservative Senate Finance Committee, which has been tasked with writing the Senate version of the healthcare bill.
Also in The Nation, Tom Geoghegan argues that it's time to break the stranglehold by abolishing the procedural filibuster. Unlimited debate in the Senate is enshrined in the constitution. In an old school filibuster, senators simply refuse to shut up until the session ends and the bill dies without a vote. In 1975, a group of liberals wrote a rule of Senate procedure that effectively allows senators to "filibuster" simply by saying they want to. In the old days, a filibuster was a grueling public ordeal. Senators slept on cots and spelled each other off. Today, "filibustering" means signing a form. It's private, easy and cost-free. The Republicans can, and will, filibuster all major Democratic legislation without having to stand in public and risk being branded as obstructionists.
As a result, 60 is the new 50 in the Senate. Since it's just a rule, the procedural filibuster could be abolished by a simple majority vote. Friends of the filibuster defend it as a bulwark against tyranny. Abolishing the procedural filibuster would discourage frivolous obstructionism, but keep the filibuster for cases when legislators actually care enough to lose sleep over it.
Ever wonder why the strongest public option, single-payer, was never on the table? Maybe because even the strongest proponents of the public plan are taking money from the insurance and biomedical industries. Mother Jones Rachel Morris wants to know why UNITEDHealth consultant Tom Daschle was on Meet the Press Sunday. A former Democratic senator, Daschle is a senior adviser to Obama on healthcare reform and a leading advocate of a public plan. However, he recently resumed a private consulting arrangement with UNITEDHealth, America's largest health insurer. Even public plan champion Howard Dean is a strategic adviser on healthcare policy to the lobby firm of McKenna, Long, and Aldridge. Dean won't disclose his clients, but McKenna represents a number of clients in the biomedical and health science industries.
The prospects of a public option are dimming, but not necessarily because of any rapid about-face by the White House. The Senate bill is in the hands of the Blue Dogs, who say they won't have legislation until November. Obama won't put the screws to the Blue Dogs, but there's still plenty of time to for citizens to make their voices heard.
This post features links to the best independent, progressive reporting about healthcare and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
Our team's at Netroots Nation this week, so the Mulch is a little shorter than usual. We'll be back in full form next Friday! In the meantime, enjoy our latest roundup of environmental news.
The U.S. job market may be showing signs of life, according to a report issued by the Labor Department on Friday. The unemployment rate dropped in July, something no economist expected. Under the most optimistic interpretation, the news indicates that the worst of the recession is finally behind us. But the scenario isn't really so rosy, as our government has yet to relieve the foreclosure pandemic. Even if unemployment is leveling off, there will be no economic recovery if the the foreclosure problem isn't fixed.
July's unemployment rate only fell from 9.5% to 9.4%, and even the most bullish Wall Street economists think the rate will hit double digits by the end of the year. The fact that July's tiny drop in unemployement counts for good economic news says a lot about how severely the economy has deteriorated over the past year and a half.
But when you dig a little deeper, the numbers get worse. As Tim Fernholz explains for The American Prospect, even though the unemployment rate dropped, the nation's economy actually shed 247,000 jobs in July. The rate was pushed down because 400,000 people gave up looking for a job in July; as such, they are no longer included in the statistic. So, while we "only" lost 247,000 jobs, we also lost 400,000 workers.
The government also adjusts its job loss figures for seasonal developments. When the Labor Department says we lost 247,000 jobs in July, that isn't the actual number-it's the number relative to what the Department considers a normal July. This summer has been unique for the U.S. economy, and especially in the case of the automobile industry. Auto companies usually lay off workers in the summer: The factories close while companies prepare the next year's models. So many factories were already closed earlier this year that the seasonal shutdowns haven't really happened this summer. Even though car companies laid people off in July, the government's seasonally adjusted numbers marked an increase in car manufacturing jobs.
Things get even more complicated when you include the Cash for Clunkers program, which started on July 24. The plan offers people up to $4,500 to trade in their gas guzzlers for more fuel efficient new car. Whether the program helps the environment is somewhat controversial, but there is no doubt that it has created a lot of unusual demand for new cars. As Ed Brayton notes for The Michigan Messenger, the government's plan to pump an additional $2 billion into the program has analysts predicting a big boost for manufacturers in July and August.
So we don't really know if the labor market actually improved last month, or if the report is just an exaggeration of statistical anomalies resulting from the recession itself, or even some of the government's recovery efforts. But as Steve Benen notes for The Washington Monthly, even if the numbers come with a healthy dose of uncertainty, it's still better to see them come in good than bad. "There hasn't been encouraging news on the job front in quite a while, and given the severity of the economic crisis, today's report offers at least some relief," Benen says. "The job numbers beat expectations, the overall unemployment rate declined, earnings went up, and the manufacturing sector improved."
But even if unemployment is finally slowing down, the housing market remains awful. Foreclosures are significantly outpacing the administration's efforts to help troubled borrowers. The Treasury Department released a report last week indicating that only about 9% of the borrowers eligible for relief under the government's anti-foreclosure plan have actually received any aid-and even here the numbers are juiced to make the program look better. The administration only includes borrowers who are already at least two months behind on their mortgage payments in the group of eligible borrowers, when in fact any borrower in danger of "imminent default" is supposed to be eligible. Much of the problem, as I argue in a piece for Salon, is that the plan relies on private-sector debt collectors to identify distressed homeowners and get them help, something these companies have never been very interested in doing. All in all, just 235,247 borrowers have received assistance under the Obama plan, while foreclosures increased to 1.5 million in the first six months of 2009, with 2.4 million expected for the entire year and 9 million by 2012.
Writing for Mother Jones, Andy Kroll emphasizes that a much better policy option is available than the current tack. Rather than ask the banking industry to voluntarily adopt the administration's plan without any consequences, we should put "homeowners' fate in the hands of a neutral arbiter, like a bankruptcy court judge . . . [It] would go a long way toward stemming the tide of foreclosures," Kroll writes.
Thanks to a bizarre legal loophole, mortgages cannot be modified in a bankruptcy proceeding if the owner actually lives in the house (investment properties, on the other hand, can be written off). In other words, if a predatory loan is driving you bankrupt, a judge can't do anything about it in bankruptcy court. Congress has tried to change this rule a few times over the past year, but the bank lobby has stymied those efforts. The most recent legislative push failed overcome a Senate filibuster in April, but the political momentum may be changing as foreclosures get increasingly out of hand.
As Mike Lillis notes for The Colorado Independent, Sen. Dick Durbin, D-Ill., plans to bring back the legislation if the banking industry doesn't get serious about helping borrowers fast. Many of the companies letting borrowers fall into foreclosure received billions of dollars in bailout money over the past year, and some even agreed to help borrowers as a condition for taxpayer support. But reform doesn't just depend on the banks. Peter Dreier argues in The Nation that citizens need to publicly protest for stronger economic reforms.
Foreclosures are terrible for the economy. They wreak havoc on families' lives, wipe out personal savings, lower the value of neighboring properties and put more homes on the market, further lowering home prices nationwide. If we cannot stop foreclosures, the economy cannot recover. If job losses are finally moderating, that's great news. But it would be much better to see job losses stabilize and see the banks we bailed out actually do something to avert foreclosures.
By now it's clear that the Senate Finance Committee won't cough up a healthcare bill before the summer recess. As Nick Bauman points out in Mother Jones, the delay is sure to sap momentum for reform. Worse, the break will give healthcare reform's opponents more time to spread fear, uncertainty, and doubt. Disinformation is already running wild.
Dave Weigel of the Washington Independent points to July 31 memo from House Minority Leader John Boehner (R-Ohio) entitled "A Very Hot Summer," in which he announces that the GOP has launched an "entrepreneurial insurgency" against healthcare reform.
And now the National Republican Congressional Committee (NRCC) is openly celebrating the angry mobs of anti-reform protesters that are disrupting town hall meetings and shouting down pro-reform Democrats, as Eric Kleefeld of TPM DC notes. "Roaring Chants Interrupt Healthcare PR Campaign As Dems Lose Their Cool and Town Halls Turn Into 'Town Hells'," gloats one NRCC email message to reporters. This campaign's official logo depicts a donkey being roasted alive.
If the reformers used the NRCC's playbook, reporters would be deluged with retaliatory tweets claiming that teabaggers are killing babies and raping old women, but facts are stubborn things. As of press time, the Pulse is not aware of any ritual sacrifices by teabaggers at townhall meetings.
Steve Benen of the Washington Monthly warns that the GOP's strategy to egg on the wingnuts could have unintended consequences:
"It's probably the one angle the corporate interests and their lobbyists haven't considered: the unintended consequences of rallying confused right-wing activists to shout down policymakers who'll improve their health care coverage. Once you wind up the fanatics and point them in the direction of a town-hall meeting, you never really know what they're going to say, do, wear, or hold. In at least one case at the Doggett event, there really was a sign with Nazi "SS" lettering."
Top Obama adviser David Axelrod denounced groups like Conservatives for Patients Rights for stoking the protesters. Axelrod pledged to aggressively combat misinformation about the Obama administration's reform plan, as Rachel Slajda of TPM reports. Is it a coincidence that Axelrod was abruptly issued a Secret Service detail this week without explanation?
In the American Prospect, Paul Waldman describes how Republican members of Congress are promulgating the urban legend that the healthcare bill includes mandatory euthanasia:
"In some tellings, government bureaucrats will visit the elderly to force them to choose their manner of death. In another, their doctors will be required to "tell them how to end their life sooner" (this one is being popularized by Betsy McCaughey, as despicable a merchant of lies as has ever slithered through our public debate). One GOP member of Congress after another has simply dispensed with all the complexity and said that the Democratic health plan will cause seniors to be "put to death by their government" or some variation thereof."
The rumor grew out of a provision to reimburse doctors for end-of-life care, including discussions of living wills, as Waldman explains.
Speaking of misinformation, Rep. Kent Sorenson (R-Iowa) is tweeting nonsense about a shadowy healthcare commissioner who decide's everything for you, as Jason Hancock of the Iowa Independent reports. "Page 42 healthcare bill 'Health Choices Commissioner' will decide health benefits for you. You will have NO choice," Sorenson breathlessly informed his followers. In fact, according to an analysis by the Pullitzer Prize-winning website PoliFact, the healthcare commissioner would regulate insurance companies to make sure they don't exclude people for preexisting conditions.
At the rate misinformation is mutating, perhaps Republicans will have convinced themselves that the bill will create Health Care Commissar who will involuntarily euthanize you and make your grandmother have an abortion by tomorrow morning.
Congress will return from summer break on September 4. Expect heated rhetoric and increasingly frenzied political theater in the weeks ahead.
This post features links to the best independent, progressive reporting about healthcare and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
International climate negotiations are currently bogged down in smog. Many countries are in disagreement about the best way to go about reducing emissions and curbing climate change. Some, like the U.S. and Great Britain, are working together to cut carbon emissions; while others say it's their way or the highway. Until the air clears, it will be difficult to determine which global leaders are making the most effective choices-or even what the best path to a cleaner earth will be.
The Senate Finance Committee is reportedly very close to finishing its healthcare legislation. But as the bill's details leak, anticipation is quickly turning to dejection in progressive healthcare circles. Early word has it that the almost finished a bill includes no public option, no employer mandate, and no insurance exchange. Steve Benen of the Washington Monthly explains why the Senate Finance Committee bill is going to suck.
At TAPPED, Scott Lemieux argues that if the Senate legislation doesn't have a public option or an employer mandate, we'd be better off not passing a healthcare bill. Conventional wisdom is that even a bad bill would be better than nothing: Once we get the basic infrastructure for universal healthcare in place, it will be easier to build on that rather than starting from scratch. However, as Lemieux points out, a bill with no public option would only further entrench the insurance industry and make it easier for them to block reforms in the future.
Remember that the bill that comes out of the Finance Committee still has to be reconciled with other versions, like the version from the Health Education Labor and Pensions Committee. So, it's possible that progressive Senators will win some concessions. However, as we've discussed before, the Senate is the key to passing healthcare reform, and the Blue Dogs are the key to passing the bill in the Senate. Whatever comes out of the Finance Committee is going to carry a lot of weight with the Blue Dogs.
It's no wonder we're fighting over a bunch of lackluster options. As Isabel MacDonald observes in AlterNet, corporate-run media has virtually banished all talk of single-payer healthcare. If you're a single-payer advocate and you want to get on TV, you have two options: Be Bernie Sanders or get arrested in the Senate.
Democrats should try implementing a radical progressive agenda one of these days-they'll be accused of doing so, anyway. Amanda Marcotte of RH Reality Check notes that even though universal healthcare is more likely to cover iPods than abortions, mainstream media and the anti-reform brigade insist on discussing abortion funding as if it were a live option. Here in the real world, pro-choicers don't even have the votes in Congress to overturn the Hyde Amendment, which bans the usual sources of federal funding for abortion. According to some experts I interviewed a few weeks ago for a forthcoming article, there might be a clever legal way to set up the healthcare program so that its funding wouldn't fall under the Hyde Amendment, but no one expects the Democrats to even try.
Make sure to keep an eye out for Ms. Magazine's summer issue, which contains a moving profile of assassinated abortion provider Dr. George Tiller by Michele Kort. The piece is titled "The Man Who Trusted Women" after Dr. Tiller's credo, a phrase that one admirer paid their last respects with, via a funeral wreath with the words "Trust Women" emblazoned in the center. Kort quotes Tiller explaining what that quotation means in practice:
"Chromosomal abnormalities make up about 24 percent of our [late abortion] patients, and sometimes the heart, the lung, the intestines, all of this is outside of the body [of the fetus]. Most places in the United States say that even if you have this kind of a problem you may not have a termination of pregnancy. ...What this says is that...women are not smart enough, they are not tough enough and they do not love enough to make these family decisions about their children and their families."
James Ridgeway of Mother Jones reported that Tiller's alleged assassin, Scott Roeder, was savoring his moment in the media spotlight while he sat in prison, awaiting his first court date on Tuesday. Roeder has been bragging lately about his bigshot anti-choice friends and hinting at a broader conspiracy. Maybe he'll take a few more terrorists down with him. That would be a bright spot on a bleak healthcare landscape.
If the Finance Committee produces a bill with no public option, no employer mandate, and no insurance exchange to bring down costs, then insurance industry gets everything and we get nothing but orders to buy their crappy product. Let's hope things shake out for the best.
This post features links to the best independent, progressive reporting about health care. Visit Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net.
This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.
Last week, Wal-Mart, ExxonMobil and the American Automobile Association (AAA) announced new programs that promote sustainability and a cleaner planet. The three corporations may have turned over a new leaf, but their efforts may actually be a case of corporate greenwashing. In today's economic climate, many companies are taking advantage of consumers that don't have the funds to be choosy about the environmental-friendliness of their purchases.
