Banana Republic – Page 11 – The Wrongologist

Sunday Cartoon Blogging – January 4, 2015

RIP Mario Cuomo:

(Columbus Day Parade, October 11, 1982. Mayor Edward Koch, Gov. Mario Cuomo and Westchester County Executive Alfred DelBello march down New York’s Fifth Avenue) Credit: Associated Press

You have to wonder how different the country would be if Mario Cuomo had agreed to become a Supreme Court Justice in 1993 when Bill Clinton offered to nominate him to replace Byron R. White. George Stephanopoulos has written that Clinton came within 15 minutes of nominating Cuomo, until the latter rejected the job in a phone call with Stephanopoulos.

The Wrongologist never drops bold-face names in the blog, but today is an exception. In 1988, he (and Ms. Oh So Right) were backstage speaking with Frank Zappa, who was playing in Boston. Wrongo asked who Zappa would support for president the next time around, since the Dukakis debacle had just happened. He said: “only Mario”. At the time, the Wrongologist agreed. But Mario would never run, and Zappa died in 1993.

On Christmas, Neil deGrasse Tyson sent this Tweet:

On this day long ago, a child was born who, by age 30, would transform the world. Happy Birthday Isaac Newton b. Dec 25, 1642

— Neil deGrasse Tyson (@neiltyson) December 25, 2014

It caused the usual spewing by the “war on Christmas” crowd, who claimed that Tyson was deliberately provoking them. Tyson replied:

Imagine a world in which we are all enlightened by objective truths rather than offended by them.

Speaking of truth, here is the whole objective truth:

2015 will be totally different, except:

We just ceased combat operations in Afghanistan. What did we learn?

Republican leader Scalise attends Klan meeting. What did the GOP learn?

Where are We Going in 2015?

2015 got off to an early start here at the Global Headquarters of Wrong, when the smoke alarm system went off at 5:45 am. Naturally, our guest revelers were still tucked in their beds, trying to sleep off too much Vueve Clicot and caviar, and there was no smoke. It fell to Wrongo to disarm the system, change a smoke detector battery, and subsequently explain to the human who called from the central alarm call center that indeed, there was no fire.

So, despite Wrongo’s plan to avoid posts until his company leaves, here, for your amusement is a quote that describes a point in the past, and that might yet be prophetic for 2015:

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.

The opening paragraph of “A Tale of Two Cities” by Charles Dickens. The two cities referred to were London and Paris during the French Revolution that lasted 10 years, from 1789 to 1799. The book was written in 1859, seventy years after the start of the revolution.

Today, the two cities could be Washington DC and any one (or more) of the following: Teheran, Beijing, Moscow, Mumbai, or Riyadh.

But the domestic problems and burgeoning turmoil in the US today is loosely analogous to what France was going through in the 18th Century.

What are the chances that the outcome will be similar?

Why Are Police Looking for Apologies?

What’s with the police union presidents in New York City, St. Louis and Cleveland? All are outraged by fairly tepid comments on the recent and controversial actions of their members, and all want apologies now, dammit. Let’s start with Cleveland.

TPM reports that the Cleveland police union has demanded that the Cleveland Browns football team apologize for a player who wore a T-shirt before last Sunday’s game protesting the police shootings of two black people. Here is the T-shirt:

That’s Cleveland Browns wide receiver Andrew Hawkins wearing a shirt reading “Justice for Tamir Rice and John Crawford III” during pre-game warmups.

To refresh your memory, Rice was the 12 year old kid killed last month when a Cleveland police officer shot him when he mistook the boy’s toy gun for a real weapon. John Crawford, 22, was killed by police in August at a Cleveland area Wal-Mart while he was holding an air rifle. Crawford was shot while doing absolutely nothing illegal. He was not threatening anyone. He was on his phone in Walmart carrying an item that’s sold at the store. Cops showed up and shot him.

So, seeing the T-shirt, Cleveland Police Patrolman Union President Jeff Follmer reacted:

It’s pretty pathetic when athletes think they know the law…They should stick to what they know best on the field. The Cleveland Police protect and serve the Browns stadium and the Browns organization owes us an apology.

So, nice stadium ya got there. Be a shame if something happened to it. The Browns did not apologize.

On to St. Louis, where the police overreacted earlier this month after a few Rams players entered their stadium making the “hands up, don’t shoot” gesture popular with protesters in Ferguson, Missouri. The St. Louis Police Association called the gesture “tasteless, offensive and inflammatory”, asked the Rams team for an apology, and called on the NFL to punish the players who ran on to the field using the “hands up” gesture.

And in New York City, the city’s Patrolman’s Benevolent Association (PBA) have been angered by Mayor Bill de Blasio’s reaction to the killing of Eric Garner. And NYC’s cops are now telling the Mayor to stay away from cop funerals. The PBA distributed a flier to members, blaring: “DON’T LET THEM INSULT YOUR SACRIFICE!” Cops were encouraged to sign and submit the “Don’t Insult My Sacrifice” waiver to ban what they see as a cop-bashing mayor from their funerals. The NYC mayor traditionally attends all funerals for fallen officers.

De Blasio basically said that he didn’t think the NYPD should be chokeholding its citizens to death, a matter that may require a seasoned NYC lawyer Mitchel Ashley or others to intervene for the families left behind. PBA President Patrick Lynch reacted by accusing the mayor of throwing cops “under the bus.”

De Blasio then went further, speaking about his 17-year-old mixed race son Dante:

We’ve had to literally train him, as families have all over this city for decades, in how to take special care in any encounter he has with the police officers who are there to protect him…

That was too much, and PBA president Lynch replied: (emphasis by the Wrongologist)

We have to teach our children, our sons and our daughters, no matter what they look like, to respect New York City police officers, teach them to comply with New York City police officers even if they think it’s unjust.

Three cities where cops use questionable tactics. Three cities where using those tactics caused controversial deaths. Three cities where the police are thin-skinned when their tactics are questioned.

These thin-skinned reactions seem totally natural, and consistent with a culture of “comply or die”.

And the police union presidents, by jumping on the comments of athletes and the NYC mayor, make a clear case against public-sector unions. They are not there to serve or protect the greater community, they are there to serve and protect their members, right or wrong. The presidents also are making the case that the police are not part of the community, but exist in a world above the community, since they deserve the community’s respect and legal immunity, regardless of their actions.

And it’s remarkable to see just how incredibly insular, tone-deaf and hyper-sensitive these police union presidents, and at least some of their rank and file, seem to be.

In Cleveland, the union president should be more concerned about the recently completed two-year Justice Department study that found the Cleveland police have a pattern of “unreasonable and unnecessary use of force”. Will different tactics emerge as the Cleveland police adapt to their consent decree?

We need to rein in our police. There is way too much “comply or else” out on the streets. We see weapons meant for warfare pointed at people trying to exercise the small shred of their free speech rights that remain. All of these cops who killed in these controversial cases have said that in the same circumstances, they would shoot/choke again.

Who should receive the apologies? Hint: it’s not the cops.

UPDATE:

The column above needs to be updated with the news that on Monday, the Supreme Court decided that our police don’t have to know the law when they stop or detain a citizen. The message is that ignorance of the law is not a barrier to policing. From Think Progress:

There is one simple concept that law students learn in their very first weeks of criminal law class: Ignorance of the law is no excuse. This principle means that when an individual violates the law, it doesn’t matter whether or not they knew what the law said. If it’s a crime, and they are found to have committed the elements of that crime, they are guilty.

But now, that rule doesn’t apply to the police. On Monday, the US Supreme Court in an 8-1 ruling, found that North Carolina cops who pulled over Nicholas Heien for a broken taillight were justified in a subsequent search of Heien’s car, even though the reason he was pulled over was not a violation of the law.

The case involved the 2009 arrest of Nicholas Heien near Dobson, North Carolina. Sgt. Matt Darisse pulled Heien over for having only one working brake light, then found a bag of cocaine while searching his vehicle and charged him with attempted drug trafficking. However, state law only requires motorists to have one brake light working at any time. Heien’s attorneys argued that this made Darisse’s search unlawful. They lost.

So, our Supremes failed to draw a line limiting the scope of police stops, at a time when they are rampant and racially disproportionate. Now, police have more leeway to stop passengers on the road, even in jurisdictions that had previously said cops are not justified when they make mistakes of law.

During the past weeks, we have heard a lot about Grand Jury procedure and the “latitude” our legal system affords police and prosecutors. That latitude apparently now includes their right to be ignorant, of our laws. That goes along with:

• Their latitude in discerning what may be a threat to their person.
• Their latitude in the use of fire-power.

Now, they have latitude not to know the laws they enforce.

Monday Wake Up – December 1, 2014

Today’s Wake Up is for entrenched power in America.

Inequality and political polarization has progressed to the point that the “The Hunger Games” trilogy is being taken seriously as literature with an important message for our time.

Its symbols are appearing in protests around the world and have made it into opinion columns:

Some protesters in Ferguson, Missouri, have adopted Katniss’s revolutionary slogan, “If we burn, you burn with us.” In Thailand, students flashing District 12’s three-fingered salute — a symbol of protest in the film — have recently been arrested. (The salute has apparently been outlawed since spring.) In a few short years, “The Hunger Games” and its symbology have become a part of the cultural commons.

America’s upper middle class thinks that inequality is an issue because it means low GDP growth, solely because people can’t buy enough consumer products to create good jobs. However, there could be an inflection point ahead when having more consumer goods ceases to be the goal of the middle class, or the people in poverty.

Look back at the French and Russian monarchies for a lesson about what that transition might look like, and how fast it can come about.

Today’s wake up music isn’t designed to get you dancing. It is the political anthem, “We Can’t Make It Here” by James McMurtry. McMurtry is the son of the novelist Larry McMurtry. The song won the 2005 Americana Music Award for song of the year. Music critic Robert Christgau has ranked “We Can’t Make It Here” as the best song of the 2000s. Bob Lefsetz said that “We Can’t Make It Here” has stood the test of time because of its unmitigated truth. Listen, while thinking that this was written in 2005, not this year:

Sample lyrics:
Will I work for food, will I die for oil,
Will kill for power and to us the spoils,
The billionaires get to pay less tax,
The working poor get to fall through the cracks

Monday’s Links:

Millennials are having to choose between affordable housing and jobs. It has always been true that there are fewer jobs where housing is affordable, but today, those two halves of the American Dream are living farther apart. Jobs with high wages are in unaffordable cities. The affordable homes cluster in the cities with lower wages and less upwardly mobile families.

Governor Christie (R-NJ) gives early sign that he is running for President. Christie vetoed a bill that would have banned crating pigs. New Jersey has few pig farms, but they are widespread in Iowa.

You can unknowingly lease a dog in San Diego CA. People who thought they purchased a dog using time payments actually leased the pet. After 27 months of payments, they could pay a $93.52 fee to end the lease, or $187.04 to purchase the pet. Why not just get a rescue animal? Read the paperwork, people! This is probably the next Wall Street securitization scheme.

Pope raises eyebrows by saying:

When we read about Creation in Genesis, we run the risk of imagining God was a magician, with a magic wand able to do everything — but that is not so…

His point was that Catholics should believe in evolution and the big bang theory. Next, Kansas and Texas will probably try to excommunicate him. Clearly, he’s been confused by those science-y people.

News from Russia:

Are the sanctions working? Russian firms that are under sanctions by the West must refinance $20 billion by April-sanctions are making that difficult.

There is a serious nuclear waste problem in the Arctic, brought to you by Russia. According to a joint Russian-Norwegian report issued in 2012, there are 17,000 containers of nuclear waste, 19 rusting Soviet nuclear ships and 14 nuclear reactors cut out of atomic vessels sitting on the bottom of the Kara Sea. The worst case scenario is described as “an Arctic underwater Chernobyl, played out in slow motion.” Oh, great, and I was worried about Crimea.

Water thievery is growing in California along with the drought. Thieves are cutting pipes and taking water from fire hydrants, storage tanks, creeks and rivers to get their hands on the precious commodity.

Thought for the week:

I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong. –Katharine Graham (Owner of the Washington Post)

California Caught in Moral Dilemma

Many have heard about California’s overcrowded prisons. In fact, conditions in California’s overcrowded prisons are so bad that they violate the 8th Amendment’s ban on cruel and unusual punishment, so ruled the US Supreme Court in 2011. That led to an order to expand California’s parole programs. But the state resisted the order, using two arguments: First, that they won’t have enough minimum security inmates left to perform inmate jobs. Second, that cheap prison labor is essential to the state’s budget.

The arguments center on a state program that uses inmates to fight wildfires. California is one of several states that employ prison labor to fight wildfires, and it has the largest firefighter program. According to Buzzfeed, prison inmates are paid less than $2 per day, and California will save $1 billion by using prison labor rather than hiring firefighters. Only certain classes of nonviolent inmates charged with lower level offenses are eligible for the inmate firefighter program. They must then meet physical and other criteria.

In exchange, inmates get the opportunity for early release, by earning twice as many credits toward early release as non-firefighting inmates otherwise earn, known as 2-for-1 credits. In February, the federal court overseeing California’s prison litigation ordered the state to expand this 2-for-1 program to some other rehabilitation programs so that other inmates who exhibit good behavior and perform certain work successfully would also be eligible for even earlier release.

Think Progress reported that California’s actions to slow-roll the court’s orders raises questions about whether using prison labor at the expense of private labor, creates incentives to keep inmates in prison, particularly when the courts have already said that many of them don’t need to be there. This doesn’t pass the smell test. Is the purpose of imprisonment to punish and/or rehabilitate, or is it to make money for the state? Is it ethical to do both? Is it ethical to keep prisoners incarcerated longer than the courts require because we can make money on their backs?

To make California’s argument even more repulsive, they apparently need more prisoners to make more money. Yet they can’t be bothered to build facilities sufficient to take care of those already in the system.

Does anyone seriously think it is cheaper to pay an imprisoned firefighter than to pay a private firefighter? That makes economic sense only when the state looks just at the $2 per day that the inmate is paid, compared to the cost of a full-time (union member) firefighter. They should be comparing it to keeping the inmate in prison for the minimum sentence of his/her term, since many of these prisoners would paroled under the Court’s order. California says that the annual cost of keeping someone in a state prison is $49,000. BTW, the typical pay for a beginning California temp firefighter for the wildfire season is $15,240. And, if the money were moved from pot A to pot B, those inmate seasonal firefighters could be hired upon release. That would create more competition for those seasonal firefighting jobs.

Prison labor has been with us since the beginning. It built our farm-to-market roads in the early days of the automobile. It stamped our license plates. Today, it picks up some of our litter and fights some of our fires and harvests some of our crops. Prison labor, whether in firefighter garb, orange jumpsuits, or chains, will remain.

It is our ethics as a people that seems to be going away for a long stay in a concrete room.

The Big Picture – An Editorial

“To conquer fear is the beginning of wisdom” – Bertrand Russell

Today, we are going to take a short course in The Big Picture. For starters, here is a quote from Digby:

…we are a primitive country. We’ve got idiots on TV screaming about a religion of 1.6 billion people being the toxic cause of violence even as our All American, non-religious school-kids are taking the deadly weapons their parents give them as presents to shoot their schoolmates and themselves. And we have the most sophisticated city on earth acting like a bunch of authoritarian creeps toward people who are doing serious work to stop the spread of an outbreak of a deadly disease — for PR purposes.

Since the Great Recession in 2008-9, we have seen the Federal Reserve move the economy slowly forward while leaving most people behind. Yet, few complain about growing income inequality. People know it and feel it, but don’t vote, or try to do anything else to change things.

• Why doesn’t income inequality upset the average American?
• Why are we more aware of how plastic surgery has changed the looks of an actress than we are about Gen. John Allen’s crazy ideas about winning the war against ISIS?
• How can more Americans be afraid of contracting Ebola than being killed in a car wreck?

What are we afraid will happen if we really dig deeply into an idea or a strategy that is proposed as a “solution” for some problem or other? Why can’t we resist re-tweeting some piece of snark that is the short version of something we believe, or thought we believed?

One visible trend is our increasing distrust of public institutions. We have seen how government, corporations, “charitable” organizations, media, and law-enforcement and the Justice system, all seem to exist for the benefit of those who manage them and not for the public.

This capturing of our institutions is a scary thing, but it is true everywhere in America. You might think that realizing this would spur interest in reform, but in fact, it has just increased our denial. People say in spite of it all, we’ll just soldier on as best as we can, making sure that we and our kids learn to navigate this rigged system.

This is why there is very little interest in politics by young voters.

Another trend is that America’s young know there is no possibility for real growth in personal income. They know that there are policies to promote and stimulate the economy, policies that might work. But, they have no faith in the ability of public officials to implement such policies, so they hang back, hoping somebody comes forward with a better answer. This, from the most connected, most media-savvy, most sophisticated generation in our history.

Voters show no interest in the 2014 mid-term elections. The media asks the same questions of the same Sabbath pundits each week: “Who will win the Senate?” But people don’t care. They watch the media whip up class warfare, cultural warfare and real warfare together into a big stew of propaganda that becomes mind-numbing. So they Facebook, and Tweet.

Most people are both stuck and scared–wanting things to change, but not knowing how. People might get upset, but big change requires commitment and action, and it is hard to get Millennials to change their minds, or to do much.

Political activism succeeds with a clear vision and a solid game plan. Neither Democrats nor Republicans have a list of good ideas about what will work to move us forward. It is possible to attribute political apathy to this lack of ideas, but the destruction of public trust in government is also a big problem.

Changing the future requires getting hold of the levers of government and then using them to do good. That is much more difficult when people don’t vote, and have no faith in their government. Trust in an institution takes a long time to build, but not to destroy. The first step is to take back our captured government.

A basic principle of martial arts is that you use your opponent’s strengths against them. In typical political contests, both sides work to out-raise and out-spend the other. And third parties try to get in the game using the same strategies as the legacy parties.

Today, each candidate is challenging the other’s strength using their own similar strength: It becomes a Sumo-style shoving match.

Conventional wisdom says that it’s expensive to run a campaign (even for local elections, much less national) and so everyone starts their campaign with a fundraising strategy and continues it incessantly even after Election Day. Conventional wisdom says you win with a charismatic candidate, so each party tries to find the best actor they can come up with. Conventional wisdom says candidates should “triangulate” their political views so that they are neither left nor right, just as Democrats are trying to do without success, in Red States this fall.

Instead, insurgent campaigns could be run on social media and the Internet, on as little money as possible—crowdsourcing both dollars and ideas from supporters. They should build constituencies for ideas and for a common future. They should select candidates who can tell the story of a united, desirable future, not some Ken or Barbie cypher for the moneyed interests who run our politics today.

The Big Picture is that we react more strongly to fear than to rationality. We used to fear Hitler. We feared the Communists. We feared al-Qaeda. We fear ISIS. We fear Ebola. We fear for our kids walking to school. We fear that America will let too many brown people across our borders. But we don’t fear climate change, or obesity, or a Congress that can’t enact an agenda to move the country forward.

There should be no mystery about how much corporate power and money drives the culture of fear. Think of it as a 4-step program:

1. Mass media hammers on events that builds general concern and possibly, panic from a few isolated incidents
2. Anecdotal evidence takes the place of hard scientific proof
3. Experts that the media trots out to make comments really don’t have the credentials to be considered experts
4. Entire categories of people (Muslims, West Africans) are labeled as “innately dangerous”

Can a cohesive group with a better way of dealing with the rest of us, gain traction in today’s connected world? Can they help America conquer the long laundry list of fears that constrict and in some cases, stop us from acting on much of anything?

It would take brains, ideas, commitment and energy.

Where are the leaders who have those qualities? How can we support them?

Sunday Cartoon Blogging – October 5, 2014

Our country is hated abroad, and frightened at home. We have reached a point where we could reasonably refer to the great American Republic in the past tense. We have edged into a post-constitutional era, no longer a nation of laws, but an autocracy run by law evaders and law ignorers, a culture in which corruption is no longer a form of deviance, but the norm.

We all live in a Mafia-run neighborhood:

By now, everyone knows about the evils of bankers and their Washington facilitators: Wall Street lobbies Congress for favorable deals, Congress then approves them at taxpayer expense. When things are this bad, the very structure of our society is threatened, and voters have to stress fundamentals over issues. We need to move beyond the divisive cultural issues, all the single issues, even critical things like the environment, war and peace, and the “economy”, and focus on structural issues. We have to leave the culture wars and even big political differences behind, and make alliances among voters–because right now, none of us are being heard.

Will White House security improve with new leadership?

However, a new threat jumped the fence:

For months, the Ebola outbreak was confined to West Africa, a region more than 8,000 miles away. But this week a patient was diagnosed with the deadly virus in Dallas, Texas, bringing Ebola hysteria right on home. We have heard typical reassurances from the CDC, while some politicians have engaged in fear-mongering. But, unless lots of Americans plan on exchanging bodily fluids with people who live or work in West Africa, we’ll be fine.

Politicians talk about terror and say: “we could all be killed”. They speak about Ebola and say: “we could all be killed”. Mothra could also come back, and you know the nation isn’t prepared for Mothra. Where will we get enough Raid? Do we have Godzilla’s cell number? OK Obama, what are we supposed to do?

Meanwhile, the actors in the Middle East continue to mis-hear each other:

And in HK, not only no hearing, there is no listening:

Sunday Cartoon Blogging – September 7, 2014

It seems that we have nearly reached peak moron, but since WWIII ain’t gonna start itself, Mr. Putin and the guys at ISIS are trying to do what they can to move us in that direction:

NATO is happy to get back to an enemy it understands:

Putin wants peace with Ukraine, now that he owns about 1/3 of the country:

Turning to domestic news, on Monday, the Senate will vote on a constitutional amendment to overturn Citizens United. The Democracy for All amendment, Senate Joint Resolution 19, allows governments to distinguish between people and corporations. It won’t pass in the House, so the Koch Brothers will be free to continue marching the Country toward Fascism.

The public finally got behind the issue of personal privacy when nude celebrity photos were hacked from the cloud:

And the fight we really want to win goes on:

Finally, RIP Joan Rivers:

The Circle of Graft

Trenton, New Jersey is the political home of Republican Governor Chris Christie. The rest of America sees Mr. Christie as a tough-talking know-it-all, a moderate Republican who could be a real threat to win the presidency in 2016.

David Sirota in the International Business Times reports that Christie is sending state pension money to his buddies on Wall Street. The idea was to improve pension plan investment returns. From Sirota:

Gov. Chris Christie’s administration openly acknowledged that more New Jersey taxpayer dollars were going to land in the coffers of major financial institutions. It was 2010, and Christie had just installed a longtime private equity executive, Robert Grady, to manage the state’s pension money. Grady promoted a plan to put more of those funds into riskier investments managed by Wall Street firms. Though this would entail higher fees, Grady said the strategy would “maximize returns while appropriately managing risk”.

Some of the higher risk investments were in hedge funds. Ten years ago, public pension funds stayed away from hedge funds. Possibly hedge funds seemed too risky, or opaque, or exotic. After all, public pension funds invest money so they can afford to keep sending checks to retired schoolteachers, police officers and firefighters. Christie and Robert Grady went ahead.

Now, four years later, New Jersey has achieved about half of their promised results:

With the exception of the 2012 fiscal year, annual public pension return rates in New Jersey are significantly lower than the national median. Those differences add up when you are investing a pool of $80 billion. However, the fees NJ paid to its financial managers have more than tripled since Christie assumed office:

Mr. Christie took office in 2010. In all, New Jersey’s pension system has spent $939.8 million on financial fees between fiscal year 2010 and 2013. That’s just slightly less than the amount Christie cut from state education funding in 2010.

Half the results at triple the cost! Madison Avenue is so NOT stealing that claim.

The news gets worse: NJ’s pension fund is $47.2 billion short of what it needs to fulfill its promised benefits to retirees. The gap had narrowed to $36.3 billion in 2010 after Christie signed bills that boosted contributions from employees, raised the minimum retirement age for new workers and froze cost-of- living adjustments for retirees.

But, the gap grew again after Christie skipped a $3 billion pension payment in fiscal 2011. Christie also decided in May to skip this year’s $3.1 billion payment, again, in order to balance the state budget. As justification for the move, he argued that retirement benefits for NJ police officers, firefighters and teachers are unaffordable and therefore must be reduced.

Even more bad news: Many of the Wall Street firms NJ now pays management fees have been donors to Republican groups backing Christie’s election campaigns. Employees of those firms have also donated more than $11 million to the Republican Governors Association and the Republican National Committee. Now, not all of that money goes to support Mr. Christie, but the New York Times reports that both organizations spent big in support of his 2013 reelection campaign: (brackets by the Wrongologist)

A third of the $1.65 million the [National Governors] association raised in New Jersey [in 2013 by Christie] came from people and businesses who had significant contracts with the state, or from utilities, which are prohibited from making any contributions to candidates for governor.

As the IBTimes also reported, at the time many of these campaign contributions were made, Robert Grady was moving about 1/3 of New Jersey’s portfolio to some of the donor firms. Grady is a former managing director of the Carlyle Group, and Carlyle and a subsidiary have received $450 million in New Jersey pension investments since Christie took office.

NJ has a history of pension pratfalls. In 1997, Republican Gov. Christine Whitman issued $3 billion of state bonds and used the proceeds to make a leveraged stock market bet that failed when the Internet bubble popped. Ms. Whitman went on to withhold payments of $ billions to the public employee pension funds over the next few years, using the bulk of that money to balance the state budget.

Wait! There’s more: From 2006-2009, NJ also failed under Democrats: (brackets by the Wrongologist)

Orin Kramer [was]…Chairman of the New Jersey State Investment Council, which is tasked with oversight of the state’s public pension system. In 2006 he successfully pushed to shift a huge chunk of the state’s $72 billion pension fund to private money managers rather than [have them managed by] state employees.

Kramer was also the architect of the decision to invest $400 million in Citigroup and $300 million in Merrill Lynch as those firm tried to survive the sub-prime market crisis in 2008. Later in 2008, Kramer “invested” union pension money into Lehman Brothers shortly before the firm’s collapse.

That move lost $115 million.

Although “public officials” decide where to place pension funds, increasingly with hedge funds, the pension monies belong to state employees.

How ironic that these same public officials blame the employees for the failure of the pension funds to have sufficient funds to meet their obligations.

Why not blame the “public officials”?

Circle of Graft, indeed!

Why We Are Driving Less

The Driving Boom, a six decade-long period of increases in per-capita miles driven in the US appears to be over. There are still millions driving, which means there are millions taking part in the Geico vs Progressive battle for the best insurance prices, but the number of drivers is not rising like it used to. From the Frontier Group:

Americans drive fewer total miles today than we did nine years ago, and fewer per person than we did at the end of Bill Clinton’s first term. The unique combination of conditions that fueled the Driving Boom — from cheap gas prices to the rapid expansion of the workforce during the Baby Boom generation — no longer exists.

If you drive a truck then you may want to purchase an ELD Device online to make driving more safe, one of the electronic logs is a great investment.
The Federal Highway Administration (FHA) reported in July on data from May, 2014, showing that travel on all roads and streets changed by 0.9% (2.4 billion vehicle miles) for May 2014 as compared with May 2013.

Here is an annotated graph of the FHA data from DShort:

The only other time in history that we’ve seen a similarly long time between the peak and trough was following the 1982 recession, when it took 39 months for total vehicle miles traveled to recover to its previous peak. It’s now been more than twice that long since the all-time high in vehicle miles driven, and unlike the 1980s, we don’t have a gas-tax hike to blame for it.

The research firm Behind the Numbers argues that we’re entering a new era in which Americans simply prefer to drive less. They report that it is unlikely that miles driven will eventually return to its prior trend. Among the reasons they say a sharp reversal is unlikely:

• Boomers are getting older and driving less.
• Millennials are less interested in driving, and are now the largest generation in the US.
• The trend toward living near the urban core reduces the need for driving.
• Higher gas prices discourage driving.
• Mass transportation is winning over more consumers.

As a result, Behind the Numbers thinks that tire and auto companies won’t do well in the future, since their sales are directly related to American driving. While it’s true that Baby Boomers are aging and will continue to drive less throughout their lives, the rest of their argument warrants rebuttal.

Let’s look at the relationship of miles driven to the Labor Force Participation Rate. The participation rate is the number of people over the age of 16, who are either employed or are actively looking for work. The Bureau of Labor Statistics (BLS) has been tracking this since 1948. Here is the relationship:

Note that the left axis is the Labor Force Participation rate expressed as a % of our total population, while the Vehicle Miles Traveled is measured on the right axis, expressed in billions of miles. It is clear that once the Great Recession started, and a smaller percentage of the population had a job or were looking for work, the miles driven stopped growing and began to decline. Conversely, when the participation rate was growing briskly, America’s miles driven grew dramatically.

The long-term growth in the employment participation rate has been discussed by many, including the Wrongologist:

During the 1970s and 1980s, the labor force grew vigorously as women’s labor force participation rates surged and the baby-boom generation entered the labor market…The labor force participation rate hit an all-time peak in early 2000 of 67.3%…And labor force participation has since dropped to 63%.

So, when the number of people working declined starting in 2007, miles driven declined. THAT may explain what is happening more clearly than “Millennials don’t like cars”, or “Mass transportation is more popular” or “Online shopping equals fewer trips”, although those may also be contributing factors. For those that are still driving on the roads, it’s worth investing in a dash cam from somewhere like BlackBoxMyCar so if an accident were to ever happen, you would have video footage to protect yourself.

Fewer miles driven means lower revenues from gas taxes. Less revenue from gas taxes means less to spend on road and bridge repair. Less spending on roads and bridges leads us toward becoming a second-world economy.

This is just one of the truly poor outcomes caused by our inability to deal constructively with the economic fallout of the Great Recession.

What can we do to reverse our national losing streak?

We do not have what it takes to leave the dysfunction of our politics behind. We have a self-reinforcing system based on our politicians scuffling for money from corporations and therefore, performing as trained monkeys for their lobbyists.

You must get out and vote. You must work to drive turnout in November. We, the people, have to get back in the game, or our losing streak will continue.

The Wrongologist

Geopolitics, Power and Political Economy

Category: Banana Republic