Category: Domestic Policy

Trump is Deregulating Pork Inspections

The Daily Escape

Zhongshuge Bookshop in Chongqing, China. There is a mirrored ceiling that enhances the visual effect of the stairs that might have been inspired by an MC Escher painting.

Under Trump, the executive branch has been policing its own damn self, and that’s working out splendidly! Think Mar-a-Lago’s security. And if Boeing inspecting themselves isn’t bad enough, the Trump administration is outsourcing much of the responsibility for food safety inspections in hog plants to the pork industry.

Trump will cut the number of federal inspectors by about 40%, and will replace them with plant employees. This could make trichinosis great again! From the WaPo (paywalled): (emphasis by Wrongo)

“Under the proposed new inspection system, the responsibility for identifying diseased and contaminated pork would be shared with plant employees, whose training would be at the discretion of plant owners. There would be no limits on slaughter-line speeds.”

This accelerates the Department of Agriculture’s plan to delegate on-site inspections to the livestock industry. It started under Obama, when poultry plant owners were given more power over safety inspections. One difference is that the Obama administration didn’t allow higher line speeds. The Trump administration starting last year, has allowed some poultry plants to increase line speeds.

WaPo says that The Trump administration is working to also shift inspection of beef to plant owners:

 ”Agriculture Department officials are scheduled next month to discuss the proposed changes with the meat industry. “

If you are a Trump fan, these moves are part of his administration’s plans to reduce regulations that large corporations want totally eliminated.

It’s standard-issue Republican Party pandering to their corporate base. And it’s ongoing, despite the administration coming under fire for delegating aircraft safety oversight responsibilities to Boeing, developer of the 737 Max jets that have crashed twice in the past six months. While FAA certification of the two aircraft involved in the crashes took place under President Trump, the major shift toward delegating key aspects of aviation oversight began under GW Bush.

Letting food producers regulate themselves: What could go wrong? That whole Listeria thing is way overblown, and the spinach growers are sure to guarantee that there’s no E Coli contamination in their produce.

Until there is.

Industry self-regulation is really no regulation at all. There’s only one case where private “regulation” has some teeth: FINRA, the not-for-profit that protects America’s investors by making sure the broker-dealer industry operates fairly and honestly. But, that’s the only example Wrongo can think of.

The real irony in this is that one of the key reasons food recalls have gotten so frequent is the cutbacks in inspections that have been going on for some time. It means that every time something IS discovered, they have to pull everything that went out since the last government inspection.

The longer the time between inspections, the more stuff that has to be pulled off the shelves.

You can be sure that if a pork plant contaminates their meat products and hundreds of people are poisoned, the free market will take care of the poor corporation. How? By letting the corporation declare bankruptcy to avoid paying victims and their next of kin. Then, the law allows them to quietly reorganize under a different business name, and sell more pork.

Of course, maybe a Boeing Max Jet will fall out of the sky, and land on one of these self-inspected pork producers.

Thomas Hobbes, in his “Leviathan”, in 1651, described what life would be without government:

“In such condition, there is no place for industry; because the fruit thereof is uncertain: and consequently no culture of the earth; no navigation, nor use of the commodities that may be imported by sea; no commodious building; no instruments of moving, and removing, such things as require much force; no knowledge of the face of the earth; no account of time; no arts; no letters; no society; and which is worst of all, continual fear, and danger of violent death; and the life of man, solitary, poor, nasty, brutish, and short.”

Sounds like a Republican paradise!

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DHS Disbanded Its Domestic Terrorism Group

The Daily Escape:

Detail of the Dome at Qasr Al Watan Palace, Abu Dhabi – 2019 photo by Ottho Heldring

(Wrongo apologizes for the lack of articles, as other priorities have intervened. He has responsibilities on his town’s Municipal Road Committee. We are preparing to spend about $10 Million on improving our roads. There are very tight deadlines for finishing our analysis, getting approval of the town council, holding a referendum, and then going to the bond market for the funds. This is a huge time sink. So, for the next 10 days, posting may be intermittent.)

From The Daily Beast: (parenthesis by Wrongo)

“The Department of Homeland Security (DHS) has disbanded a group of intelligence analysts who focused on domestic terrorism, The Daily Beast has learned. Numerous current and former DHS officials say they find the development concerning, as the threat of homegrown terrorism—including white supremacist terrorism—is growing.”

The group in question was a branch of DHS’s Office of Intelligence and Analysis (I&A). They focused on the threat from homegrown extremists and domestic terrorists. Their analysts shared information with state and local law enforcement to help them protect communities from these threats. According to the Daily Beast, the reorganization happened last year, and had not been previously reported.

DHS defended the reorganization. Pressed by The Daily Beast, a senior DHS official pushed back:

 “The same people are working on the issues….We just restructured things to be more responsive to the…customers within DHS and in local communities while reducing overlap with what the FBI does. We actually believe we are far more effective now.”

Ok. But one local community “client” is Los Angeles, and Sgt. Mike Abdeen with the LA County Sheriff’s Department told The Daily Beast:

“It’s been very quiet lately….It’s changed with the new administration. It doesn’t seem to be as robust, as active, as important…it’s not a priority. It doesn’t seem like engagement, outreach, and prevention are seen as a priority as we used to see in the past. There were roundtable meetings in the past…more training, more seminars. Now it seems like it’s gone away.”

Nobody would say that domestic terrorism has been declining, so you have to decide whether this is an unintended consequence of another Trump appointee trying to streamline a government process, or whether it is an intentional effort to bury bad news about elements within Trump’s base of support.

Is Trump’s ability to appoint people who will undermine the efforts of our civil service better, or worse than his use of the judges’ roster provided by the Federalist Society to pack the courts?

Wrongo votes that it’s a tie.

Trump has said repeatedly that he doesn’t consider white nationalist groups to be an actual threat. So out goes the white nationalist task force.

Is this merely DHS accepting the viewpoint that when a disgruntled white male takes an assault rifle and kills people in a school or Synagogue, he isn’t committing an act of terror, he’s merely a troubled person expressing concern about the fragility of the few remaining white people in America?

This is a GOP problem. There’s been a consistent drumbeat to sweep right-wing terrorism under the rug, and it predates Trump. Consider that in 2009, the Obama administration’s DHS released a report warning about Rightwing Extremism. The report warned that “rightwing extremists may be gaining new recruits by playing on their fears about several emergent issues.” It also predicted that the possibility of new gun restrictions and the return of “military veterans facing significant challenges reintegrating into their communities” might mean “emergence of terrorist groups or lone wolf extremists capable of carrying out violent attacks.”

That report called this convergence of factors the “most dangerous domestic terrorism threat in the United States”. Republicans went ballistic:

“Rep. Lamar Smith (R-TX) said the administration was “awfully willing to paint law-abiding Americans, including war veterans, as ‘extremists.’” Then-Rep. Steve Buyer (R-IN) — the top Republican on the House Veterans’ Affairs committee at the time — called it “inconceivable” that some veterans could pose a threat.”

John Boehner (Former GOP Speaker of the House) said:

“The Secretary of Homeland Security owes the American people an explanation for why…her own Department is using [“terrorist”] to describe American citizens who disagree with the direction Washington Democrats are taking our nation…”

Then-DHS head Janet Napolitano was forced to apologize, and she soon buried the report.

FWIW, Christopher Hasson, the Coast Guard officer who was a “domestic terrorist” and self-described white nationalist was arrested in February. But he’s not Muslim, so no worries, nothing more to see here.

Wrongo is old-school enough to believe that Republicans used to care about all of America. That they had different (and usually wrong-headed) approaches to our priorities and the solutions to problems, but they wanted what’s good for the country in general.

It’s gone. Trump-Republicans only want good things for people in their in-crowd. That excludes the majority of Americans.

Trump doesn’t want to stop domestic terrorism by white nationalists. He wants to harness it.

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Monday Wake Up Call – April 1, 2019

The Daily Escape:

Racka Sheep, Hungary, April 2017 – photo by Laszlo Balogh.

The Trump legacy keeps on giving. Forbes reports that when Trump’s tax bill passed in late 2017, it included:

“A new tax on litigation settlements: no deduction for legal fees…..That means many plaintiffs must pay taxes even on monies their attorneys collect. Of course, the attorneys must also pay tax on the same money.”

Robert W. Wood, a Forbes contributing writer who follows taxes, cites the case of Edwin Hardeman who won $80.5 million in a suit against Monsanto’s Roundup. From Forbes:

“Hardeman was awarded a bit over $5 million in compensatory damages, and $75M in punitive damages. The combined contingent fees and costs Mr. Hardeman pays his attorneys might total as much as 50%. If so, the plaintiff would get to keep half, or $2.5 million of the $5 million compensatory award. Since it is for his…non-Hodgkin’s lymphoma, that part for physical injuries should not be taxed. Then, of the $75 million punitive award, $37.5 million goes to legal fees and costs, and $37.5 million to Hardeman. So before taxes, the plaintiff’s take home is $40 million.”

But because of Trump’s new math, Hardeman’s $75 million punitive damages award is fully taxable, with no deduction for the fees he pays to his lawyer. Between federal taxes of 37% and California taxes of about 13.3%, Hardeman could lose about 50% to the IRS and California Franchise Tax Board. He would still owe another $37.5 million to his lawyers, so his after-tax take from an $80 million verdict only $2.5 million.

A $2.5 million award isn’t chump change, but this is another effort by corporations and Republicans to discourage law suits seeking punitive damages by plaintiffs. Notably, compensatory damages for physical injuries or physical sickness are still tax-free, but not punitive damages.

Doesn’t paying taxes on money you don’t receive seem un-American? The reach of corporate interests into our laws cannot be overstated. It will take a generation to reverse all of the inroads corporate lobbyists have made into our tax laws alone.

So, wake up America! It’s time to change capitalism so that it works for the people, not just for the owners and managers of corporate America. Bill Maher had a great discussion on his show “Real Time“. He echoed FDR’s “Four Freedoms” while commenting on how countries with a higher socialism-to-capitalism mix rank as happier than the US in the recent World Happiness Report. Maher says;

“Happiness isn’t only about what you have. It’s also about what you don’t have to worry about,”

Maher recommends rebranding Capitalism Reform as “Capitalism Plus.” Because, “It’s a plus when you get sick and you can focus on getting better instead of not going broke“. Or, ending up sleeping under an overpass.

Maher ends with:

“Does pure unbridled capitalism work? I guess that depends whether you’re on the board of Boeing, or onboard a Boeing.”

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

 

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Don’t Call Warren a Wonk

The Daily Escape:

Bryce Canyon, Utah – 2019 photo by AccountexpiresSept10

(Wrongo has been a little distracted by the Barr Letter and the aftermath of Russiagate. He’s spent a ton of time checking out who is recanting their positions, and who is doubling down. That explains the lack of daily posting. Also, there will be no Saturday Soother this week as Wrongo and Ms. Right take advantage of Broadway and NYC’s nightlife. There will be cartoons on Sunday, though.)

Wrongo is beginning to place Pete Buttigieg near the head of the 2020 class of presidential candidates. He’s smart, an intellectual, and most important, someone who thinks and speaks with nuance about our politics. Wrongo also likes Elizabeth Warren. She’s turning out ideas at a higher rate than any of her competitors. This, from Charlie Pierce: (brackets by Wrongo)

“The Senator Professor Warren Policy Shop and Idea Factory continues to operate at full capacity. First, a little something-something from the Des Moines Register: Warren has not shied away from confronting those affected by her policies, delivering them directly to those industries’ doorsteps. Just as she announced her plan to break apart the nation’s largest tech companies before heading to one of the [agricultural] industry’s largest gatherings…”

Warren announced her plan to take on corporate agriculture just before traveling to Iowa to speak at a rural issues forum. The companies she names in her plan — Tyson, Dow-DuPont and Bayer-Monsanto — are all key players in Iowa’s economy. More:

“Warren argues small farmers are unable to get ahead ‘because bad decisions in Washington have consistently favored the interests of multinational corporations and big business lobbyists’ over their own. Warren said during a recent interview with the Register ‘The number of purchasers of soybeans or hogs has shrunk dramatically….The number of seed providers has shrunk dramatically, and the diversity of the seeds (offered) has shrunk. Concentration in those industries has put a real squeeze on small- and medium-sized farms in Iowa.”

But Warren is being concern-trolled as an unlikeable, wonkish professor, while Buttigieg gets praise for learning Norwegian in order to read a favorite author. More from Pierce:

“The temptation will be great for people to hang the deadly Wonk label on her, an especially painful tag for a woman. But to do so is to ignore the fundamental theme that all of these proposals have in common: a multi-front attack on…monopoly power as an enemy of the poor and middle class….”

Bias remains in all of us, even as we try to ignore it. Wrongo wonders if non-MAGA males will view a smart female candidate like Warren differently than a male competitor.

Buttigieg is impressive. He may be young, but he’s serious, intelligent, and well-versed in the issues.

Warren, a college professor and US Senator, is every bit the intellectual equal of Buttigieg and, like Mayor Pete, is light-years smarter than Donald Trump.

Here’s the problem: When men listen to Buttigieg, they hear intelligence, humility, and a willingness to learn. When they listen to Warren, do they hear something different, and maybe, less likeable?

That was true in 2016. Hillary Clinton was held to a higher standard than Donald Trump. Her negatives were far higher than would have been true for a male candidate with similar strengths. Despite more than three decades of public service, Clinton lost to the most unqualified and unfit Presidential candidate in our nation’s history.

Can Democrats nominate another woman so soon? If so, should Warren be the one?

Warren is an intellectual force who wants capitalism reform. She articulates real policies, and attacks the class war waged by the rich. Like Mayor Pete, she has the ability to present complex ideas in ways that are both accessible, and actionable.

Maybe, “wonk” won’t stick to her as it did to Hillary. “Wonk” implies focusing on technicalities that ordinary people find boring, or beyond their understanding. The wonk tries to describe a small world, while the rest of us mostly try to focus on the big picture.

Warren seems the opposite of a wonk. She is more like Teddy Roosevelt than Paul Krugman. No one would call Theodore Roosevelt, a demonstrated reformer with anti-plutocrat chops, a wonk. It should be difficult to portray Warren that way.

Warren has found a way to merge an economic agenda and Democratic voters’ deep concern about our political system. She says, “rebuild democracy.” Accountability, reform, oversight, anti-corruption brings it all together.

But there are those in the media who think Warren is wonky. There also are men who, in 2019, still have trouble listening to a smart woman.

Clearly, as a society, we haven’t made nearly the progress we like to give ourselves credit for.

Warren needs to avoid the media painting her into a corner. Her message is resonating.

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Sunday Cartoon Blogging – March 24, 2019

What you missed in Friday’s news about Robert Mueller wrapping up the Russia investigation was that Trump announced the appointment of Stephen Moore, a conservative economic pundit as a member of the Board of the Federal Reserve.

Moore is a doofus. There’s no bigger example of a so-called “economist” failing his way upwards than Stephen Moore as Jon Chait points out: (emphasis by Wrongo)

“Stephen Moore’s career as an economic analyst has been a decades-long continuous procession of error and hackery….Moore’s primary area of pseudo-expertise — he is not an economist — is fiscal policy. He is a dedicated advocate of supply-side economics, relentlessly promoting his fanatical hatred of redistribution and belief that lower taxes for the rich can and will unleash wondrous prosperity. Like nearly all supply-siders, he has clung to this dogma in the face of repeated, spectacular failures.”

Wrongo hastens to remind everyone that the Fed is in charge of MONETARY POLICY, not Fiscal policy. Moore only holds a Master’s degree in Economics. There are many, many examples of Moore’s hacktastic pseudo-expertise in economics. Slate reports that Moore: (brackets by Wrongo)

“Predicted that Bill Clinton’s tax hikes would bring disaster (they didn’t), that George W. Bush’s tax cuts would bring prosperity (they didn’t), and that Barack Obama’s policies were setting us up for ’70s-style stagflation (they didn’t)….He and supply-side guru Art Laffer were also key advisers behind Kansas’ fiscally and politically disastrous tax cuts. In spite of his own track record of [consistently] failed predictions, he has disparaged Keynesian macroeconomics as ‘witchcraft.'”

He’s recently called for Trump to fire the entire Fed board. Moore has blamed the Fed’s rate increases over the past year for slowing economic growth, and recently called on the Fed to begin cutting rates. He helped draft Trump’s tax proposals while working as an economist at the Heritage Foundation.

Stephen Moore is a joke in the economics profession. This should go well. On to cartoons.

Barr holds the key to what we learn about the Mueller investigation:

Stop calling them White Nationalists, alt-Right or Populists. These people are White Supremacists:

Funny how most Christians in the US don’t obey the Ten Commandments, but consider the Second Amendment a must follow:

What is evident from attacks on Black Christian churches, Synagogues, and Mosques in the US, and now in NZ, is that RW extremists are increasing their attacks. They are citing Trump as their “guiding light”, while Trump continues to play down their involvement:

Biden looks like a candidate, but some wonder about his age:

George and Kellyanne Conway see Trump differently. Will their relationship survive?

Trump says free speech for conservatives is great, missing the point about our free press:

Rep. Devin Nunes sues Twitter because of a satirical account called “Devin Nunes’s Cow”. As of today, more people follow the fake cow that mocks Devin Nunes, than follow Devin Nunes:

 

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We Need a New New Deal, Not a Green New Deal

The Daily Escape:

St. Augustine Beach, FL – 2015 photo by Wrongo

(Wrongo and Ms. Right leave today for Florida and their annual week-long visit with Wrongo’s sisters. We’re leaving 19° for 70°. Blogging will be uneven, unless Trump wins his wrestling match with Kim, or India and Pakistan declare war.)

Raul Ilargi:

“There are lots of people talking about how they much disagree with Alexandria Ocasio-Cortez, how silly she is, how dumb and impossible and irresponsible her Green New Deal is, but I think they’re missing a point or two. First of all: what’s the alternative? Who would you trade her for? Would you rather things stay the same?”

Wrongo thinks that Alexandria Ocasio-Cortez seems savvy beyond her years. The septuagenarians in Congress can’t present themselves as she does, because she’s 29 years old, born in 1989. She’s in the first generation to grow up with a ubiquitous internet. For her elders, like Wrongo, that’s an acquired skill.

Wrongo has been thinking a lot about capitalism reform. Changing capitalism to take advantage of lessons learned in the past 50 years should be seen as a good thing, not the first step on the path to socialism as Republicans would have everyone believe.

And the Green New Deal is more New Deal than green. It emphasizes reforming our current economic system by deficit financing a new jobs program aimed at improving our infrastructure. The new infrastructure should create clean power, zero emissions vehicles, and high quality jobs that pay prevailing wages. It would be financed by a new tax structure that adds revenue while tilting the tax burden away from individuals to corporations and the uber-wealthy.

Wrongo isn’t a fan of Ocasio saying she’s a socialist. That’s most likely a bridge too far for America in 2020. It’s also unnecessary. Calling what she, Bernie, Elizabeth Warren and a few others have as policy goals are, for the most part, reform of capitalism.

Of course, cynical politicians can say that the Green New Deal is not realistic. That takes you back to establishment Democrats like Hillary, Pelosi, Biden, Booker, Harris and a few more we can’t hear. That’s fine if you want young Americans to invade a few more foreign nations, or you prefer growing income inequality for people here at home. Otherwise, they would all be terrible political leaders, particularly if you believe those policies must stop.

Turning to the “Green” part of the Green New Deal, Benjamin Studebaker offers a great perspective: (emphasis by Wrongo)

“…at this point, we have integrated the global economy so thoroughly that there may now be many irreducibly global problems that cannot be solved at the national level, even with an American commitment….We don’t have the global political institutions we need to handle problems like this, and every time we try to create them voters balk, accusing us of trying to destroy their cultures and deprive them of “sovereignty” and “national self-determination“, as if there were any meaningful sense in which they still had these things to start with.”

His point is that the US now produces only 15% of total global emissions. More from Studebaker:

“The EU commands a further 10%, while other rich states (such as Japan, Australia, and so on) add another 8%. This means that the rich states only control about a third of total emissions. China controls nearly another third (about 30%), and the rest comes from the remaining developing countries, with India and Russia making the largest contributions (7% and 5%, respectively) of that bunch.”

These developing countries are continuing to increase their emissions. This means that reductions from rich states are cancelled out by the growing emissions of developing countries.

Studebaker concludes that it’s beyond the ability of the US to go green unilaterally, and if we did, it wouldn’t bend the arc of global warming sufficiently to make a meaningful difference.

What we can do is provide an example for the world. We can do the right thing, precisely because it is the right thing to do. And along the way, reforming capitalism will quickly improve the lives of average Americans.

We can form a coalition around capitalism reform that includes most people in the bottom 90% of the economic pyramid. It can include Democrats, Independents and a few Republicans, most of whom would never be part of Bernie’s democratic socialism, or AOC’s Green New Deal.

There will be some version of the Green New Deal that starts in the near future. Let’s call it reform of capitalism, and get started on it today.

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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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The Power of Messaging

The Daily Escape:

Buttermere Lake, Cumbria, England – photo by Matt Owen-Hughes

On Monday in El Paso TX, Trump attacked Democrats, calling them:

“The party of socialism, late-term abortion, open borders and crime…To pave the way for socialism, Democrats are calling for massive tax hikes and the complete elimination of private health care…They’re coming for your money and they’re coming for your freedom.”

Trump’s focus on “socialism” is based on the few liberal Democratic presidential candidates who have called for Medicare-for-all, or environmental proposals intended to lower carbon emissions.

He brought up the “Green New Deal”, saying it would virtually eliminate air travel and that it sounds “like a high school term paper that got a low mark.”

This is just the latest stage in the war waged by the right against the ideals and programs of the New Deal. Kim Phillips Fein, reviewing the new book “Winter War: Hoover, Roosevelt, and the First Clash Over the New Deal” by Eric Rauchway, writes: (brackets by Wrongo)

Throughout the [1932] campaign, Hoover had attacked what he considered a “social philosophy very different from the traditional philosophies of the American people,” warning that these “so-called new deals” would “destroy the very foundations” of American society. As Hoover later put it, the promise of a “New Deal” was both socialistic and fascistic; it would lead the country on a “march to Moscow.”

2020 will be all about messaging. Once again, just like 88 years ago, Republicans will run on socialism. Trump will add the threats posed by open borders and abortion to the right-wing stew.

The question is what will be the 20+ Democrats who are running for president be talking about? Michael Tomasky in The Daily Beast suggests: (emphasis by Wrongo)

I am saying, though, that Democrats should stop pretending they can unite the country. They can’t. No one can. What they can do, what they must do, is assemble a coalition of working- and middle-class voters of all races around a set of economic principles that will say clearly to those voters that things are going to be very different when they’re in the White House…

There is a power to fashioning a new political coalition around the concept of economic justice. We live in a time when politicians of both parties have followed a consistent strategy: massage the economic numbers and the media, keep the rich and powerful happy, and make sure you stay on the “fiscally conservative” side of the line.

Now, a few Democrats are pushing the party elders to re-consider economic justice as FDR did in the1930s. These Democrats intuit that most Americans are trying to reconcile the life they were told they would have with today’s reality. The gulf between what they were told, and what actually happened is wide. And it looks as if it will only get wider.

Many Americans feel that they can’t pay their bills anymore, and they are afraid. Their jobs aren’t stable, they can’t look forward to retirement. About 20% say they have more credit card debt than savings. The lives they thought they’d live are upside down, and they’re not sure they can do anything about it. Quite a few followed their preachers and a few charlatan Republicans, and can’t understand why things are so scary and bad for them.

America is divided, but maybe not in the way you are thinking. It’s the left behinds and millennials who are worried about their future. And it’s both of them against the politicians, corporations and the oligarchs. As David Crosby sang:

“There’s something happening here, what it is ain’t exactly clear”

In 2020, we’ll be fighting for not just the soul of our country, but the meaning of American life: Should the one with the most toys win?

What is more important, universal health care, or outlawing abortion? Better roads and bridges, or keeping out immigrants? A better environment, or lower taxes?

Ocasio-Sanchez’s Green New Deal (GND) can easily be dismissed, but what really is the difference between how the Green New Deal might be financed, and how the Federal Reserve spent nearly $4 Trillion on its Quantitative Easing (QE) schemes?

The big difference is who profits. QE was welfare for the banks. For the GND, society at large would benefit.

You will get to decide, and plenty of people are already fighting for your attention.

Some are worth listening to. What will you choose to do?

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Another Lie From Trump

The Daily Escape:

The Cuernos del Paine in Chile – photo via Live Science. The 4,300-mile-long Andes, the longest continuous mountain range in the world, didn’t form slowly by one geologic plate sliding under another. They grew in two growth spurts helped by volcanic action. (Hat tip to Ottho H.)

What Trump said about El Paso in the SOTU:

“The border city of El Paso, Texas, used to have extremely high rates of violent crime—one of the highest in the country, and (was) considered one of our nation’s most dangerous cities. Now, with a powerful barrier in place, El Paso is one of our safest cities,”

Local politicians weren’t happy with Trump’s false claims that the city was violent and dangerous before a border wall was built. Trump was repeating bogus information from Texas Attorney General Ken Paxton. And, he had made the same claim at the American Farm Bureau convention in mid-January.

Here is an example of the local outrage. Jon Barela, the chief executive officer of the Borderplex Alliance, which leads economic development efforts in the El Paso region, tweeted:

Texas Monthly reports that El Paso has made lists of the nation’s safest cities for almost two decades. But what are facts when you have a wall to build on the back of a racist narrative?

Wrongo lived in El Paso for a time when he was in the military (Vietnam era), back before there was talk of a wall, before the Maquiladora factories became a part of NAFTA, when Ciudad Juarez was probably far more dangerous than it is today. But back then, El Paso couldn’t be considered dangerous for someone who went to college in Washington DC, and lived on the outskirts of NYC.

One state over in New Mexico, Governor Michelle Lujan Grisham, a Democrat, has ordered the withdrawal of the majority of National Guard troops stationed at the US state’s southern border, denouncing as “a charade” President Donald Trump’s warnings about migrants swarming the border, saying:

“I reject the federal contention that there exists an overwhelming national security crisis at the southern border, along which are some of the safest communities in the country,”

Are you getting the theme here? Two of the states closest to “the problem” say there isn’t a problem.

Kevin Drum at MoJo gathered the El Paso statistics. He shows that Trump cherry-picked the data, looking at 2005-2009. There was a spike from 400 crimes/100,000 people in 2005 to 450 crimes/100,000 people in 2008. Here is a chart showing the same statistics from 1993 to 2013:

Do you see the big reduction that came with the Wall? The Wall had almost no effect on crime in El Paso. It’s also important to remember that crime rates have come down throughout the US since the 1980’s.

The most damning fact about crime on the southern border is that it is way down. American Progress reports that:

  • Border cities are among the nation’s safest: Phoenix and other large border (and near-border) cities have some of the nation’s lowest crime rates, including San Diego, El Paso, and Austin
  • Border counties have low violent crime rates: Counties along the southwest border have some of the lowest rates of violent crime per capita in the nation. Their rates have dropped by more than 30% since the 1990s.
  • There’s no evidence of “spillover” of violence from Mexico: El Paso, Texas, has three bridges leading directly into Ciudad Juarez, Mexico, a city which has suffered a significant percentage of the national death toll brought on by the Mexican war on drug cartels, which approaches 23,000 today.
  • El Paso experienced only 12 murders in 2009, which was actually down from 17 in 2008. San Diego, California saw 41 murders in 2009, down from 55 in 2008, and Tucson, Arizona experienced 35 in 2009 a significant decrease from the 65 murders committed in 2008.

We should remember that Trump is from Queens, an outer borough of New York City. He lived there during the 1970s and 1980s, so he knows first-hand what living in a high crime city feels like. He also knows that the high crime he (and Wrongo) experienced, wasn’t caused by immigrants. That was when the Guardian Angels were founded in NYC. Trump lived there the whole time, he probably even took the subway.

His argument is false, and is clearly purely political. He’s playing to the fears of those suburbanites too intimidated to visit NYC, even if they live less than 25 miles away. His audience is suburbanites in the Midwest and Northern states.

These same people believe European cities like London and Paris are full of Muslim “no-go” zones. You can show them evidence that those cities are safer than their own suburbs, but that’s not the point.

Maybe “safe” really means “white”, so any place with too many non-whites is just too dangerous.

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It’s Time to Raise Taxes

The Daily Escape:

Autumn in Hunza Altit Valley Pakistan – 2017 photo by Nasr Rahman. This shows that beauty can exist in very difficult places.

In 1785, Thomas Jefferson called for a geometric progression in taxes on assets of property holders as a way of lessening inequality. People with more assets would pay much higher taxes. Today, we’re still in search of policies that will do the trick. From The Fiscal Times:

Democratic Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez have sparked intense debate this month by proposing higher taxes on the rich, with Warren calling for a wealth tax and Ocasio-Cortez proposing a 70% top marginal tax rate.

But, Senate Republicans are moving in the opposite direction. Three GOP senators reintroduced legislation to permanently repeal the federal estate tax. The 2017 GOP tax overhaul has already reduced the number of estates subject to the tax by roughly doubling the value of assets that can be excluded from the tax. For 2019, this tax will only be paid by 1,700 families, but that’s all too much for Republicans.

Axios just reported on what Americans think about taxes:

Polling has found tax increases on the wealthy to be popular. A survey earlier this month by The Hill and HarrisX found that 59% of registered voters, including 45% of Republicans, support increasing the top income tax bracket to 70%. A Fox News poll released last week found that 70% of voters favor tax increases on families making over $10 million a year and 65% favor tax hikes on incomes over $1 million annually. Paying taxes is a complicated and controversial issue. What is not controversial is the need for people to take advantage of tax services that can help ensure they pay the right tax and thus appease the ever-lurking IRS. Going to http://daveburton.nyc/tax-services-nyc/ will provide more detail on this.

Those numbers suggest that a complete repeal of the estate tax might be about as popular as the polar vortex.

This shows how vast the gulf is between Republicans and Democrats on taxes. A poll by Axios, along with SurveyMonkey, ironically presented at Davos, showed that 70% of Americans think the economic system is skewed toward the wealthy and the government should do more to fix it. It further showed respondents are ready to vote for a 2020 candidate who agrees.

  • 58% of people surveyed say that “unfairness in the economic system that favors the wealthy” is a bigger problem than “over-regulation of the free market that interferes with growth and prosperity”
  • Among 18-24 year-olds, that gap is a chasm: 76% to 21%
  • Among those 65 and older, it’s a very narrow 51% to 46%
  • 89% of Democrats agree
  • 68% of independents agree
  • But 77% of Republicans say over-regulation of the free market is a bigger problem than economic unfairness
  • A huge majority of Democrats (90%) said they would be excited to vote for a candidate who promises to reform the economic system, with 71% of independents saying the same.

(SurveyMonkey’s online poll was conducted January 16 through 18, 2019 among a national sample of 2,277 adults.)

After WWII, America had very high marginal tax rates, and one result was corporate income was reinvested in the company, rather than given to top management or shareholders. Why give 70% of every dollar to the government?

Back then corporations, in exchange for limited liability, assumed they had fiduciary duties to the public and to their employees as well as shareholders. But the Right got behind the doctrine that a corporation’s only duty was to their shareholders. CEO’s became significant shareholders through stock options.

Then, Reagan and Bush lowered taxes on corporate and personal income, and dividends.

Our basic political issue in America has become: “Does the economy exist to serve the nation, or does the nation exist to serve the economy?”

Our affirmative vote must be for the economy to serve the nation. Over the past 40 years, we have reduced taxes for high earners and corporations. We’ve added loopholes that subsidize corporations, but our need for infrastructure spending hasn’t declined, and our military spending has grown dramatically.

Over the past forty years, the share of income taxes paid by corporations has declined. It is now only 9% of US government tax revenues. It was about 24% in 1960.

We’ve financed the tax cuts for high earners and corporations with ever growing budget deficits. The golden age for these policies must end now.

We need to go back to the days of socially responsible capitalism, not the predatory capitalism we have today. High marginal income tax rates will help. In addition, taxing dividends at the same as ordinary income is a good idea.

Let’s raise the capital gains tax above its current 20% rate.

Let’s find a Constitutional way to tax wealth as Elizabeth Warren suggests. Add a very small transaction tax on sales of stock on all public markets.

It’s time to move past the politics of “What can America do about inequality without corporations and rich people actually giving anything up?”

This isn’t an anti-corporate, anti-wealth assault, it is a necessary corrective to bad tax policy from the 1970s to today.

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