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The Wrongologist

Geopolitics, Power and Political Economy

Monday Wake Up Call – June 24, 2019

The Daily Escape:

View from Angels Landing summit, Zion NP Utah – 2019 photo by SurrealShock. 86,000 people visited Angels Landing over the four-day Memorial Day weekend in 2018.

On Sunday, the NYT reported: (emphasis by Wrongo)

“In the last decade, private land in the United States has become increasingly concentrated in the hands of a few. Today, just 100 families own about 42 million acres across the country, a 65,000-square-mile expanse, according to the Land Report, a magazine that tracks large purchases. Researchers at the magazine have found that the amount of land owned by those 100 families has jumped 50 percent since 2007.”

The West is a patchwork of public and private lands. Land ownership in the West has always been concentrated in the hands of the federal government, which owns about 50%. Now we learn that the rest of the West is quickly moving into the hands of a very few people.

The large purchases by these new private landholders come as the region is experiencing the fastest population growth in the country. That drives up housing prices and the cost of living. Some locals are fearful of losing both their culture and economic stability.

Rocky Barker, a retired columnist for The Idaho Statesman, has said this is a clash between two American dreams, pitting the nation’s respect for private property rights against the notion of beauty-rich publicly-owned lands set aside for the enjoyment of all.

In the West, there is an evolution of an economy based in minerals extraction, to one based on recreation; from a working class culture to a more moneyed one. The NYT article focuses on one family, the Wilks brothers, Dan and Farris, who made their money ($3.5 billion) in fracking. They sold out, and bought a vast stretch of mountainous land in southwest Idaho.

The Wilks brothers see what they are doing as a duty. God had given them much, and in return, “we feel that we have a responsibility to the land.”

The Wilkses now own 700,000 acres across several states, and have become a symbol of the out-of-touch owner. In Idaho, they have closed trails, and hired armed guards to patrol their land, blocking or stymieing access not just to their property, but also to some publicly owned areas. They also hired a lobbyist to push for a law that would stiffen penalties for trespass, and the bill passed.

This has made locals angry, as they have hiked and hunted on these lands for generations. Some emailed the Wilkses, asking permission to cross their property. They were surprised to receive a response suggesting they first visit PragerU, a right-wing website that was financed by the Wilkses and share their opinions of its content.

This is an example of a test for land use. Should you have to tell landowners your political views before you get to use their land?

Welcome to the future. Concentration of land ownership is a natural consequence of our free market capitalism. Our capitalist system isn’t designed to prevent concentration of ownership, whether it be of corporations or land.

That requires politicians who are not beholden to corporations and capitalists.

Our ancestors left Europe because by the 1600s, much of the land had already been bought up and was either inaccessible, or available in small lots for rent. America has been in the process of being divided up in the same way since the 1700s.

We talk about wealth inequality, and this story shows again that it is much more than numbers on a ledger. It is the power to own vast chunks of America, to decide how that land will be used, and to charge for that usage if they desire.

Battles over both private and public land have been a defining part of the West since the 1800s. For years, fights have played out between private individuals and the federal government.

OTOH, Americans in the West have made private ownership of wilderness a sacrament. They even contend that private use of public lands should be a right. Now, when the results of concentrated private land ownership become clear, when suddenly, a river or a mountain range they’ve enjoyed using for decades has a fence around it, their bellyaching begins.

But when the Wilkses, who made their money in fracking talk about how they feel they have a responsibility to the land, that has to be seen as hypocrisy.

The people in the West should Wake Up and give thanks for every inch of every national park. They should willingly pay additional taxes to keep our national parks in prime condition.

And they should finally see the wisdom in higher income taxes on corporate profits, and in Elizabeth Warren’s taxes on individuals with greater than $50 million in assets .

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Monday Wake Up Call – June 3, 2019

The Daily Escape:

Mont Rotui, Moorea, French Polynesia – 2019 iPhone photo by mystackhasoverflowed

Time to wake up America! Donald Trump has proven once again that he has no understanding of economics. From the Wall Street Journal:

“President Trump will award the Presidential Medal of Freedom to economist Arthur Laffer, one of the pioneers of the idea that tax cuts can boost government revenue, the White House said Friday.

Mr. Laffer is one of the founding theorists of supply-side economics, a school of public economics that rose to prominence during the Reagan administration and returned to the fore in the run-up to the 2017 package of tax cuts that Mr. Trump signed into law.

The White House described Mr. Laffer as “one of the most influential economists in American history,” and said his “public service and contributions to economic policy have helped spur prosperity for our Nation.”

Laffer is famous for his drawing his Laffer curve on a napkin, illustrating his idea to Dick Cheney and Donald Rumsfeld at a dinner in 1974. His curve showed that increases in tax rates will eventually cause government tax revenue to decrease, because people will begin to work and earn less. This was then taken to its theoretical limit, saying that tax cuts could pay for themselves by spurring economic growth.

The WSJ calls Laffer “one of the pioneers of the idea that tax cuts can boost government revenue”. Isn’t it weird that the fact that his “idea” has been completely disproven in the real world, doesn’t seem to matter?

Conservative economics is not a branch of economics, it’s a branch of Conservatism.

The Laffer curve was successful at its real purpose, providing a basis to funnel more money to corporations and the rich. Republicans traffic in propaganda, not knowledge.

Last year, Laffer co-wrote a book titled “Trumponomics: Inside the America First Plan to Revive Our Economy.” Laffer’s co-author was Stephen Moore, another conservative who styles himself as an economist. Earlier this year Trump nominated Moore to serve on the Federal Reserve Board of Governors. Moore had to withdraw, amid bipartisan opposition from Senators.

Laffer was the advisor behind the notorious Kansas state income tax plan that ruined the state’s finances. In 2012, Then-Kansas Gov. Sam Brownback passed a package of tax cuts based on Laffer’s ideas. The result was that Kansas lagged behind neighboring states with similar economies in nearly every major category: job creation, unemployment, gross domestic product, and taxes collected.

In 2017, the Kansas legislature repealed the Laffer/Brownback tax cuts. After the repeal, state taxes were boosted by $1.2 billion.

Laffer has spent years preaching his idea that almost any tax cut for businesses and the rich could potentially pay for itself. That idea has become the bankrupt conceptual backbone of the Republican Party’s entire economic theology.

For the 2017 Trump tax cuts, his administration also borrowed Laffer’s idea. Treasury Secretary Steven Mnuchin and National Economic Council Director Larry Kudlow, have repeatedly claimed that the Trump tax cuts will pay for themselves. But, a new report finds that the tax cuts were responsible for less than five percent of the growth that is needed to offset the revenue loss from the Trump tax cuts.

We must point out here that Larry Kudlow does not hold a degree in economics. He was once fired from an investment bank for doing cocaine. Imagine just how much cocaine you’d have to do to get fired on Wall Street in the 1980s.

Trump’s now added the Presidential Medal of Freedom to the American traditions he’s debasing. Other economists awarded the Medal of Freedom include Gary Becker, Milton Friedman, John Kenneth Galbraith and Robert Solow. Laffer can’t carry their briefcases.

There may be no man alive who has done more damage to America’s understanding of taxes and their effect on economic growth than Art Laffer.

Evidently, Trump is grading him on a curve.

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Monday Wake Up Call – May 6, 2019

The Daily Escape:

Torres del Paine NP, Chile – 2016 photo by Andrea Pozzi

After our granddaughter’s graduation in PA (summa cum laude), we had a few wines and beers, and talk turned to politics and the mess America is in now. Son-in-law Miles, (dad of next week’s grad) asked a very good question. “Is now really the worst of times? What about when Martin Luther King was assassinated?

Wrongo immediately flashed back to JFK’s assassination. He was a DC college student when JFK died. But his focus wasn’t on the loss of a president, or what that meant to the country. His focus was on what the loss of JFK meant personally.

That changed in 1968 with the assassinations of MLK and RFK. Wrongo was in the Army, stationed in Germany when Dr. King was killed. There was great tension in the enlisted men’s barracks. For a few days, it took a lot of effort in our small, isolated unit to keep anger from boiling over into outright fighting between the races.

By the time we lost RFK, it was clear that the Vietnam War would drag on, killing many of Wrongo’s friends. But, Wrongo’s job was to defend America from the Russians, with nuclear weapons if necessary.

It was difficult to see how or when Vietnam would end. It was hard to imagine Richard Nixon, Henry Kissinger, or Robert McNamara doing much to stop young Americans from dying in Asia.

The year 1968 also included the Tet Offensive. Mark Bowen in his book, Hue 1968, says:

“For decades….the mainstream press and, for that matter, most of the American public, believed their leaders, political and military. Tet was the first of many blows to that faith in coming years, Americans would never again be so trusting.” (p. 507)

When Americans finally saw the Pentagon Papers in 1971, they learned that America’s leaders had been systematically lying about the scope and progress of the war for years, in spite of their doubts that the effort could succeed. The assassinations, Vietnam, and Watergate changed us forever.

Our leaders failed us, it was clearly the worst of times. We were in worse shape in 1968 than we are in 2019. Back then, it felt like the country was coming apart at the seams, society’s fabric was pulling apart. Then, May 4th 1970 brought the killings of college kids at Kent State, which was probably the lowest point in our history, at least during Wrongo’s life time.

Last week, we acknowledged the 49th anniversary of America’s military killing American students on US soil. We vaguely remember the Neil Young song “Ohio” with its opening lyrics:

“Tin soldiers and Nixon coming, we’re finally on our own…”

That’s why the decade from 1960-1970 was the worst of times. We got through it, but we have never been the same.

In 1968, we saw that change can arrive suddenly, fundamentally, and violently, even in America. Bob Woodward spoke at Kent State last week, on Saturday, May 4th. He offered some brand-new information about Nixon’s reaction to the student shootings: (emphasis by Wrongo)

“In a conversation with his chief of staff H.R. Haldeman in September 1971, Nixon suggested shooting prisoners at New York’s Attica Prison riot in a reference to the Kent State tragedy. “You know what stops them? Kill a few,” Nixon says on a tape of the conversation.”

Woodward continued:

“We now know what really was on Nixon’s mind as he reflected…on Kent State after 17 months….Kent State and the protest movement was an incubator for Richard Nixon and his illegal wars.”

Woodward meant that what was coming was a war on the news media, creation of the “Plumbers” unit to track down leaks, and attempts to obstruct justice with the Watergate cover-up.

Many of us see 2020 shaping up as another 1968. Some see Nixon reincarnated in Trump.

We haven’t faced this particular set of circumstances before, so we can’t know just how it will go. Will it be worse than the 1960s, or just another terrible American decade? Is it the best of times, or the worst of times?

Are we willing to fight to preserve what we have anymore?

Wake up America, you have to fight for what America means to us. Constitutional liberties are under attack. The right to vote is being undermined. Extreme Nationalism has been emboldened.

To help you wake up, listen once again to “Ohio” by Neil Young in a new solo performance from October, 2018. He’s added some documentary footage and a strong anti-gun message:

You may not know that Chrissie Hynde, the future lead singer of The Pretenders was a Kent State student, and was on the scene at the time.

Those who read the Wrongologist in email can view the video here.

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Barr May Never Face the House Judiciary Committee

The Daily Escape:

Sunset at Malin Head, Donegal, Ireland – 2019 photo by jip

(There will not be a Saturday or Sunday column this weekend, or next. Wrongo and Ms. Right are traveling to two different states, attending the college graduations of grandchildren Elise and Conor.)

After the contentious Senate Judiciary Committee hearing on Tuesday, AG Bill Barr has canceled his scheduled appearance before the House Judiciary Committee. There is plenty of speculation about what happens next.

House Judiciary Chairman Jerry Nadler (D-NY) had previously said that he would subpoena Barr if he refused to testify. If Barr ignores the subpoena, as the Trump administration has done regarding document production, Democrats on the committee have indicated that they will move to hold the AG in contempt of Congress. From the LA Times:

“A contempt finding is how Congress may respond when someone refuses to testify or provide information as part of a House or Senate investigation. The Supreme Court has repeatedly upheld that Congress has a right to compel people to comply with its oversight efforts.”

In the past, just the threat of being held in contempt (not to mention Congress’ power over funding the government) was usually enough to convince an administration to comply with a request, or at least negotiate a compromise.

No longer. The Trump administration has no intention of complying with subpoenas from Democrats.

If Barr was held in contempt of Congress, what happens next? Congress has a few options. The most common is that it can send a criminal contempt referral to a US attorney. If prosecuted and convicted, the punishment is up to a $10,000 fine and a year in jail.

The last administration official to be held in contempt of Congress was Anne Gorsuch, Neil Gorsuch’s mother, who was head of the EPA in the 1980s. The House issued a subpoena, Ms. Gorsuch said “no thanks”. Congress referred it to the DOJ for enforcement, and the US Attorney refused to carry it out.

So the finding of regular contempt is enforced by the DOJ, and the DOJ has the discretion to not prosecute the finding.

If they fail to do it, the House would fall back on their inherent contempt power. Yes, there is such a thing. The long dormant inherent contempt power permits Congress to rely on its own constitutional authority to detain and imprison someone who is held in contempt until the individual complies with congressional demands.

Problem is, the inherent contempt power hasn’t been used since 1935. The inherent contempt power is not specified in a statute or constitutional provision, but has been deemed implicit in the Constitution’s grant to Congress of all legislative powers.

The Sergeant At Arms is Congress’s proper arresting authority, however, there is no jail in the Capitol. There are holding cells at the Capitol Police Dept., but they are not appropriate for a long term detention. And even if the Sergeant At Arms did arrest Barr, it is likely that he would quickly be released.

Here’s what we’ve learned this week: Congressional enforcement of a subpoena has no teeth if it is used against a member of the Trump Administration. So, there will never be a consequence for Barr, or any other member of the Trump administration disobeying a subpoena.

Democrats need to think very clearly about their messaging in the face of their anger at William Barr. Saying that “Trump is terrible and we are powerless” is not a winning message.

Saying “vote for us and we’ll fix this when we win in 2020” is better, but doesn’t sound like a great message either.

The Mueller Investigation game has already been won by Republicans. Democrats can try to test the system. If it works, we still have a country.

But, if they try, and it doesn’t work, we’re back to saying: “Trump is terrible and we are powerless”.

Things are moving a lot faster than most Democrats realize. It isn’t clear that traditional politics (compromise, etc.) will survive. And it’s even less clear what is going to replace it.

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College Admissions Fraud: A Teachable Moment About Capitalism

The Daily Escape:

Eagle pair on nest, Litchfield County CT – 2015 photo by JH Clery

With the college admissions fraud, wealthy Americans are now bribing people to get their kids into college. It’s just another way that the wealthy are rigging the game. Robert Reich enumerates:

We’ve become a nation where any number of greased poles stop your ascent. People with wealth seem unwilling to compete fairly. It turns out that executives from Pimco, Hercules Capital, and the co-chairman of the law firm, Willkie Farr & Gallagher, were named in the buy your way into Yale scam, along with a few Hollywood types.

It’s become very difficult to differentiate between applicants for the prestige colleges. Good grades and test scores and life experiences are no longer enough to help a kid to stand out the way they might have a few years ago. So some are bribing their way to the head of the line.

It’s just another cost of doing business in America. The truly wealthy can just pay for a new building and see their children get into the best universities. But, the merely rich can’t do that. OTOH, they can’t be expected to simply earn their way in.

As for the kids: They all knew whether what was on their applications was true or not. They had to be in on the scam. This is what passes for the charmed life of the rich in the USA: Kids knowingly cheat right along with their cheating, entitled parents, because they believe they deserve to go to Georgetown.

Robert Reich is correct, this is the rot that concentration of wealth has brought to our country.

Randall Lane has a long read at Forbes about “Reimagining Capitalism” in which he summarizes his one-on-one discussions with two dozen billionaires, including face-to-face meetings with the three richest people in the world, Bill Gates, Jeff Bezos, and Warren Buffett, about capitalism’s future. Lane says:

“Virtually every billionaire I spoke with acknowledged that higher taxes on the billionaire set are inevitable; most even saw them as beneficial, if correctly applied. According to Gates, Buffett, Khosla and others, the correct way to levy taxes on the superrich is….Either an estate tax without the loopholes that currently render it useless or a higher capital gains tax applied only on extreme fortunes…”

He quotes Buffett about the disparity of earnings between the top 1% and the bottom 50%:

“The market system as it gets more specialized pushes more money to the top….The natural function of a more specialized market economy is to divert more and more of the rewards to the top. That’s something I don’t think we’ve fully addressed in this country.”

Lane points out that Bill and Melinda Gates even went on Steven Colbert and called for higher taxes on the super-rich.

Younger Americans know that the deck is stacked. That may be in part why some kids play along with their parents and cheat to get into Harvard.

An often-cited 2016 Harvard University survey found that 51% of American youth aged 18 to 29 no longer support capitalism. Only 42% said they back it, while just 19% were willing to call themselves “capitalists.” A follow-up focus group study concluded that most felt that:

“Capitalism was unfair and left people out despite their hard work.”

Gene Sperling, Obama’s Director of the National Economic Council, has an interesting take on redefining our overall economic goal. He says we should strive for “Economic Dignity”. His conclusion is that the Fed and the Congress should implement a full employment monetary and fiscal policy that fosters tight labor markets.

Sperling says that would be a triple win for economic dignity, because it would lead to higher wages, and it would give companies greater incentive to provide advanced training to their employees. Meanwhile, high labor demand gives more workers some “take this job and shove it” leverage that they lack today.

Taken together, it would allow people to care for and provide opportunity to their families, something that is at the core of America’s beliefs.

Young Americans know that capitalism in its current form creates inequality, oppression, and exploitation. It could be made to work for all if it were more responsive to society’s needs, and yes, if it provided economic dignity for all.

Those who have been rewarded by capitalism shouldn’t be able to use their bounty to make the lives of others worse than they are. This isn’t just about the Koch brothers. It’s also about the merely wealthy who scam the college admissions system to get their kids into better schools.

We should be showing the young that there’s a better form of capitalism.

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Saturday Soother – March 9, 2019

The Daily Escape:

Railroad bridge over Housatonic River in snow – 2019 photo by Quadco Joe

We start driving back from sunny, warm FL this am. While you are having coffee and listening to music, we’ll be once again driving by a few Civil War battlefields. But today, let’s talk about Paul Manafort. On Thursday, Trump’s former campaign manager and a one-time lobbyist for unsavory people, was sentenced to 47 months on tax evasion, when the sentencing guidelines called for something like twenty years.

Manafort was sentenced to four years, just like the rest of us. But his seems lenient, while ours seems harsh.

Manafort’s judge was T. S. Ellis III, of the Eastern District in Virginia, who isn’t a model of judicial consistency. Few remember Rep. William J. Jefferson (D- LA), who was convicted of corruption. He was sentenced in 2009 to 13 years by Judge Ellis, who said that he hoped Jefferson’s punishment would serve as a “beacon” to warn other public officials not to succumb to corruption.

Ellis gave Jefferson the longest corruption sentence ever for a member of Congress. It was five years longer than a different judge gave former Rep. Randy “Duke” Cunningham, (R-CA), after he plead guilty to more egregious charges, of steering defense contracts in return for bribes.

After the Supreme Court’s 2016 decision in McDonnell v. United States, which narrowed the definition of public corruption, Mr. Jefferson appealed his conviction. Judge Ellis threw out 7 of the 10 charges against him, accepted Jefferson’s plea on the three remaining counts, and sentenced him to time served. In total, Jefferson served five and a half years.

Think about it: Ellis made an example of Jefferson, while sending the opposite message with Manafort’s sentence, and ignoring sentencing guidelines. Ellis said: “He’s [Manafort] lived an otherwise blameless life.” Franklin Foer in The Atlantic debunked that:

“In an otherwise blameless life, Paul Manafort lobbied on behalf of the tobacco industry and wangled millions in tax breaks for corporations.

In an otherwise blameless life, he helped the Philippine President Ferdinand Marcos bolster his image in Washington after he assassinated his primary political opponent.

In an otherwise blameless life, he worked to keep arms flowing to the Angolan generalissimo Jonas Savimbi, a monstrous leader bankrolled by the apartheid government in South Africa. While Manafort helped portray his client as an anti-communist “freedom fighter,” Savimbi’s army planted millions of landmines in peasant fields, resulting in 15,000 amputees.

In an otherwise blameless life, Manafort was kicked out of the lobbying firm he co-founded, accused of inflating his expenses and cutting his partners out of deals.

In an otherwise blameless life, he spent a decade as the chief political adviser to a clique of former gangsters in Ukraine. This clique hoped to capture control of the state, so that it could enrich itself with government contracts and privatization agreements. This was a group closely allied with the Kremlin, and Manafort masterminded its rise to power—thereby enabling Ukraine’s slide into Vladimir Putin’s orbit.”

There’s more, but you get the drift. People will argue that Manafort wasn’t charged with ruining the world, he was charged with tax evasion. And that using one crime to punish others the subject was not charged with is not a good practice.

True, but had Judge Ellis heard about Al Capone?

And giving less than one quarter of the recommended punishment says that Ellis, a Reagan appointee, saw the Republican in Manafort, while he saw the Democrat in Jefferson.

Time to leave the world behind and line up for your Saturday Soother. Let’s start by sampling the AK-47 Espresso Blend from Black Rifle Coffee, a veteran-owned coffee company who calls their products “freedom fuel”. Wrongo saw their billboard while driving through North Carolina, and doesn’t want to hear any comments from wussy liberals about how the South is different.

Now, settle into your most comfortable chair and listen to Pablo Villegas, playing “Recuerdos de la Alhambra” (Memories of the Alhambra) by Spanish composer Francisco Tárrega, live at Philadelphia’s Kimmel Center in 2013:

The piece showcases the challenging guitar technique known as tremolo.

Those who read the Wrongologist in email can view the video here.

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Sunday Cartoon Blogging – February 24, 2019

Wrongo doesn’t know about you, but he’s not ready to make a cull of the top presidential candidates from the current herd of Democrats running for the job. And most of us are barely watching the 20+ politicians closely at all.

But inside the White House, Trump is watching Democrats’ announcement rallies, and televised town halls, listening carefully to commentary on the Democratic presidential race. Apparently, he wants to play an active role in choosing his Democratic opponent, and has instructed his aides to look for ways he can sow divisions among the Democratic rivals. He’s hoping to cause chaos from the right. Perhaps he’s learned from the Russian model.

Media Matters for America says that the right is also focused on the so-called “illegal coup” that Mueller, the FBI, and Democrats are attempting to pull off via the Mueller investigation. They reported a disturbing episode of Fox News host Laura Ingraham’s “The Laura Ingraham Show Podcast” Thursday, when guest Joe diGenova said:

“We are in a civil war in this country….There’s two standards of justice, one for Democrats one for Republicans. The press is all Democrat, all liberal, all progressive…they hate Republicans, they hate Trump. So the suggestion that there’s ever going to be civil discourse in this country for the foreseeable future in this country is over. It’s not going to be. It’s going to be total war. And as I say to my friends, I do two things — I vote and I buy guns.”

After the arrest of Christopher Paul Hasson, the white nationalist Coast Guard lieutenant with the stockpile of guns and ammo, and a list of Democrats to assassinate, it’s easy to see how casual talk about our political divisions can slip into thoughts of open warfare. This isn’t a “both sides do it”, problem. Only one side speaks openly about war, and they seem to really want one.

On to cartoons. We’re hearing that Mueller may have something for us:

Some think that there’s nothing to see:

Bernie’s back, but there seems to be less enthusiasm:

Dems are at the eye test stage, and it’s confusing:

The GOP hates Dem agenda, and suggests a really bad idea:

Remember the GOP’s socialist plots from the old days? Their old ideas never die:

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Monday Wake Up Call – Green New Deal Edition

The Daily Escape:

Double Rainbow, Kauai, Hawaii – 2018 photo by Charlene Renslow

There has been plenty of talk about the introduction of a Green New Deal (GND) as an answer for what ails America. Here is the text of HR 109. Everyone should take a few minutes and read it.

The power of the GND is that it addresses the power imbalance between established political and business interests in the US and the rest of us. The GND injects compassion into our democracy. Justice for workers is compassion. Care of the environment for future generations is compassion. A more equitable distribution of wealth is compassion.

From Ed Walker:

“The Green New Deal is an overarching statement of political goals for the Democratic Party, something the party has not had for decades. It lays out a vision of a future inspired by the best the party has to offer, Franklin Roosevelt’s Four Freedoms, which he laid out in January 1941 as the US stared at the unfolding crisis in Europe…..It is a combination of Roosevelt’s unfinished goals and the massive work done by liberals to expand the reach of the Constitution to previously disfavored groups. It offers hope and possibility as we confront the crisis of environmental disaster.”

Most people think the GND is about fixing the environment. That’s true, but there is a larger theme running through it, the reform of capitalism.

Capitalism is at the core of our country’s growth and place in the world. It has created wealth for all. In accordance with its tenets, a few of us are fabulously rich, while the majority of us are not. It also imposes economic costs on the 99% while sucking up most benefits for those at the very top. As Ed Walker says:

“You don’t see the rich living next door to petroleum processing plants or airports or gravel pits or trash dumps. You don’t see their kids suffering from asthma caused by factory pollution or heavy truck traffic or worse. You don’t see them unable to pay medical bills or take their kids for needed medical attention. That’s for the little people.”

The GND’s most important virtue is that it doesn’t assume that the entire burden of the disruption caused by economic growth (if the GND becomes law), should be borne only by the 99%. It insures corporations will not grab vast profits, or control adaptation to the new economy for their sole benefit.

For example, when the price of natural gas dropped, capitalists stopped using coal, and coal miners lost their jobs, their insurance, their homes and their futures. Under the GND, when natural gas is phased out in favor of alternative sources, displaced workers will have a job and health care, because the GND offers a job guarantee and universal access to health care.

The knee-jerk reaction from Republicans (and many Democrats) is that the GND is socialism, and it’s impossible to implement in a free society. It is true that HR 109 is designed to rebalance the power about who decides the future of the nation. It explicitly favors the interests of the vast majority. It explicitly limits the power of corporations to dictate what response will be made to the threat of climate change.

This isn’t socialism, it’s an overdue reform of capitalism. Our companies, in particular the large global firms, can no longer be trusted to do the right thing when it comes to the welfare of Americans. For the past 70 years, people accepted that they would do well if American companies did well.

Globalism has made a lie of that ideology. Corporations must pay taxes. Corporations must be responsible for bearing the economic costs for all of us that come from their decisions.

Capitalism reform is a serious challenge not just to corporations and the rich. It is a serious challenge to our current political parties. Democrats claim to be the party of the people. The GND will force them to prove it.

The GOP represents the interests of corporations and the rich against the interests of working people. The GND makes this clear. It offers voters a contrast with the Republican/MAGA vision for this nation.

Both parties claim to want the best for the country’s future. Thinking about the GND forces them to come up with positive programs, or to do nothing in the face of mounting inequality, and a zero-sum political economy. Some have compared a GND transition to the abolition of slavery. Slavery was immensely profitable, and the benefits went to relatively few. And those few held all the political power in the South. It led to war.

Meanwhile, the media focuses on the horse race of ideas, and the cost. Can the Green New Deal pass? How could we ever pay for it?

Democrats and Republicans opposed to the GND must explain why even more neoliberal capitalism will accomplish what voters say they want. Republicans will continue to argue that the GND will turn us into Venezuela or worse.

But the rest of us now have a vision for a better future.

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Saturday Soother – December 22, 2018

The Daily Escape:

Two Jack Lake, Banff, Alberta, CN – 2018 photo by don_wilson

A perfect photo for the end of this week: Black ice, more than a foot thick, with very large cracks. It feels like America is on ice skates, without any of us knowing how to skate, stop, or change direction. And there’s those giant cracks.

We don’t have a permanent Attorney General, Defense Secretary, or Chief of Staff. The government is likely to shut down because the president wants his border wall. Paul Ryan’s last official act of the year was to cave in to the president on his $5 billion funding demand, and kick it to the Senate.

Stocks are having the worst December since the Great Recession. And Robert Mueller has indicted multiple members of Trump’s inner circle. Trump seems to be skating, too.

But Wrongo wants to discuss Ruth Bader Ginsburg (again). She underwent surgery at Sloan Kettering Cancer Center in New York City:

Justice Ruth Bader Ginsburg had two cancerous nodules removed from her left lung Friday at a New York hospital, the Supreme Court announced. There is no evidence of any remaining disease, says a court spokesperson, nor is there evidence of disease elsewhere in the body….In 1999, Ginsburg underwent surgery for colorectal cancer, and 10 years later she was treated for early stages of pancreatic cancer.

Apparently, the cancer was detected early because of scans taken after she fractured her ribs. Since there is no current evidence of metastasis, it’s possible that she will make a full recovery.

We’re all thinking the same thing when Ginsburg’s health takes a bad turn: That Trump could have yet another chance to alter the makeup of the Supreme Court, precisely when he doesn’t look completely in control of his administration, or his emotions.

But, America oddly seems to be ok with a government shutdown. And most people think that fewer troops in Syria and Afghanistan is a good thing. As Wrongo predicted on Friday, we will withdraw 7,000 soldiers from Afghanistan over the next few months. The Taliban rules more than half of the country and Afghanistan’s army is losing more personnel each month than they can recruit.

BTW, it was Sec Def Mattis who had urged Trump to increase the troops in Afghanistan from 10,000 to 14,000 at the beginning of his term. His retirement marks the second time in five years that Mattis has had a serious conflict with his commander in chief. President Obama fired him as Head of Central Command for urging a more aggressive Iran policy.

But, you want to get on with shopping online, wrapping gifts and decorating the tree. So it’s time for a little Saturday soothing. Start by brewing up a vente cup of Valhalla Java Odin Force Coffee from the Death Wish Coffee Company, in Saratoga Springs, NY ($15.99/12 Oz.). Death Wish has been featured here before, and says that they make the world’s strongest coffees. They also say that the Odin coffee is nutty, with a taste of chocolate.

Now settle back for a few minutes, put on your Bluetooth headphones, and listen to the “Agnus Dei” by Samuel Barber, performed without instruments by Belgium’s Vlaams Radio Koor (choir), with Marcus Creed conducting. It was recorded in Brussels in 2015, and is an arrangement by Barber of his Adagio for Strings (1936). This is typically done by a chorus with organ, or piano accompaniment, but here it is simply the chorus, and it is simply beautiful:

Wrongo thinks it is superior to the original piece with piano and strings. It must be very difficult to sing.

The lyric:

In Latin:

Agnus Dei, qui tollis peccata mundi, miserere nobis

Agnus Dei, qui tollis peccata mundi, dona nobis pacem

In English:

Lamb of God, who takes away the sins of the world, have mercy on us

Lamb of God, who takes away the sins of the world, grant us peace

Those who read the Wrongologist in email can view the video here.

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Tax Abatements Are Killing School Budgets

The Daily Escape:

Egmont National Park, NZ – photo by vicarious_NZ

A new report shows that US public schools in 28 states lost at least $1.8 billion in tax revenues last year as a result of tax incentives granted to corporations. The study analyzed the financial reports of 5,600 of the nation’s 13,500 independent public school districts.

Good Jobs First examined the first full year of reporting under a new accounting standard for school districts, adopted by the Governmental Accounting Standards Board (GASB), the body that sets accounting rules for all states and most localities. The new rule, GASB Statement No. 77 on Tax Abatement Disclosures, requires most state and local governments to report annually on the amount of revenue they’ve lost to corporate tax abatements.

This is extremely important, since most local schools are very dependent on revenue from property taxes, but they rarely have influence over corporate tax abatements granted by their towns, and/or the cities or counties where they are located.

And local voters have had no way to see how much they are forced to pay in additional taxes that were lost to enrich the pockets of corporate employers.

Good Jobs found that the 10 most affected states could have hired more than 28,000 new teachers if they were able to use the lost revenues. Or, they could have avoided higher home property taxes, or provided their teachers with better resources, or higher pay.

States and cities have long used abatements and other tax incentives to lure companies, or to keep them from leaving, and/or to encourage them to expand locally. Often, those companies make their choice of location based on the quality of local schools and colleges.

These abatement deals are made by local politicians and are meant to boost local economic development. Their proponents say the lost tax revenue is worth it, because they grow the local economy. But it is difficult to know whether the benefits outweigh the burdens.

And until GASB 77, it has been impossible to see just how much a school system may have lost because of a company’s tax break. The new rule is especially helpful in understanding local schools finances, because it requires the reporting of revenue losses even if they are suffered passively by the school system as the result of decisions made by another body of government.

Of the five districts that lost the most, three are in Louisiana. Together, they lost more than $158 million, or $2,500 for each student enrolled. The School District of Philadelphia, which only last year regained local control from the state after climbing out of a deep fiscal crisis, lost the second most revenue at $62 million.

Overall, nearly 250 school districts lost at least $1 million each, and in four districts, tax abatements reduced classroom resources by more than $50 million.

But most school districts have not yet complied with Rule 77, which was implemented in 2015. Good Jobs First estimates that another $500 million of subsidies and abatements are currently unreported.

Most of us believe that our governments are supposed to govern in the interests of the “general welfare,” that when voters put people in positions of power, based on the legitimacy of our electoral process, is the limit of our responsibility as voters.

We accept that somebody has to say what the rules are, and then enforce them.

But in our neoliberal economic times, voters have to remember that our governments often act as wholly owned subsidiaries of the 1%. It takes suspension of belief to accept that our republic, ruled as it is by an oligarchy, is working for the general welfare of all of our citizens.

Why do we think that, our “governments”, all of which are subject to capture and ownership by the few, are going to somehow provide decency, comity, or fairness to all of us?

We need to abandon the article of faith that the free market, one without government oversight, promotes the best economic outcome for all of us.

Today’s inequality says the opposite.

We need a new vision of the role of government. But it isn’t really a “new” vision. It is simply a return to insisting on the “promotion of the General Welfare for all” as the paramount object of government.

Here’s another thought from Gordon Wood, in his book, Creation of the American Republic:

In a republic each individual gives up all private interest that is not consistent with the general good, the interest of the whole body. For the republican patriots of 1776 the commonweal was all encompassing—a transcendent object with a unique moral worth that made partial considerations fade into insignificance.

The last outcome that American revolutionaries wanted was to be ruled by oligarchs. But, here we are.

We need to reform our capitalism.

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