More Political Lessons From Brexit

There is a neoliberal aspect to Brexit that has many Brits in the 1% quietly (and tentatively) quite happy. Fraser Nelson, editor of the Spectator and a columnist for the Daily Telegraph, writing in the WSJ, said the Brexiteers:

…think the vote for Brexit was about liberty and free trade, and about trying to manage globalization better than the EU has been doing from Brussels.

Neoliberalism at its finest. You could substitute “No Obama” for “Brexit”, and “Washington” for “Brussels”, and think it was the GOP talking.

Mr. Nelson says that a major problem was that the EU’s centralized, command-type structure makes local issues difficult to manage. He says that regulations issued at the European level, rules promulgated by officials whose names Brits didn’t know, people they never elected and cannot remove from office, became law in the UK. More from Mr. Fraser: (emphasis and brackets by the Wrongologist)

Mr. Cameron has been trying to explain this to Angela Merkel…He once regaled the German chancellor with a pre-dinner PowerPoint presentation to explain his whole referendum idea. Public support for keeping Britain within the EU was collapsing, he warned, but a renegotiation of its terms would save Britain’s membership…Mr. Cameron was sent away with a renegotiation barely worthy of the name. It was a fatal mistake [by the EU] not nearly enough to help Mr. Cameron shift the terms of a debate he was already losing.

The EU took a gamble: That the Brits would not vote to leave. A better deal—perhaps aimed at allowing the UK more control over immigration, a top public concern in Britain—might have stopped Brexit. But the absence of a deal sent a clear message: The EU isn’t interested in reform.

The EU apparently needs fixing, but it won’t be the UK who does it. Cameron tried in a lukewarm way to fix Europe a little around the edges, and failed. A final point from Mr. Fraser:

The question is not whether to work with Europe but how to work with Europe. Alliances work best when they are coalitions of the willing. The EU has become a coalition of the unwilling, the place where the finest multilateral ambitions go to die.

Perhaps. It IS clear that not all regulations are created equal, some are inefficient, and some are just stupid. But, a business environment with fewer government regulations is the wet dream of most business owners, while it often harms consumers. It is also true that the Brexit supporters were able to conflate in the minds of voters all the discontent with UK austerity, benefit cuts, poor quality job creation and wage stagnation along with the EU’s hegemony, into a big ball of emotion.

And it worked.

The inside-the-bubble UK neoliberal view is that the EU was the problem, and the British voters solved that. America doesn’t have an analogue. We could leave NAFTA, but that has none of the earth-shaking possibilities. We could fail to pass the TPP. That would be a yuuge anti-neoliberal event.

There is an economic malaise in blue collar UK. Once an industrial powerhouse, it has become service driven, with finance and lawyering representing a significant portion of its economy. Sounds just like America in 2016.

Let’s link all of this up with our domestic political economy:

  • Income inequality has grown in the US since at least the 1980s.
  • Real median income is the same as in 1996.
  • Our Labor Participation Rate (the share of American civilians over the age of 16 who are working or looking for a job) is about where it was in the 1970s.
  • Despite a rosy headline unemployment rate of 4.7% (which counts only people without work seeking full-time employment), the U-6 rate (includes discouraged workers and all marginally attached workers, plus those workers who are part-time purely for economic reasons) is much higher at 9.7%. In human terms, that is 15.3 million souls who need a job.

Donald Trump and Hillary Clinton both see these things. The candidate who convinces voters that s/he will really address them will win.

Trump is correct when he says if there are millions out of work, how can we permit immigration? He wrongly focuses on Mexicans, but he’s right: We need fewer people pursuing the fewer jobs we will have until at least until 2025, when finally, all the Baby Boomers retire.

America is in a class war, but it’s the working class versus the middle class rather than workers versus billionaires, as Bernie talks about. Joe Six-pack doesn’t hate the billionaire class. Therefore, Trump is acceptable.

The Pandering Pant Load sees this, and has moved to exploit their anger.

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How Brexit Informs The Pant Suit’s Strategy

We are told that the Pant Suit is the candidate of the status quo, while the Pant Load is a wild card who will bring about change, possibly change that causes immediate remorse if he is elected. That’s just what the UK is experiencing. After a weekend facing the realities of Brexit, 3.5 million Brits have signed a petition for a do-over vote on “Remain vs. Leave”.

The pundits say Clinton can’t be the candidate of change because she supports President Obama, and the common view is that her first term would be Obama’s third term. But, if Brexit has relevance for the American election, she must avoid appearing to be the candidate of the status quo.

If the Pant Load can make the election about any kind of change vs. more of the same, Clinton will be vulnerable.

She should run against Trump’s fitness to govern, and the fitness of the Republicans in Congress to govern as well. After all, Republican Congressional leaders decided not to govern in January 2009, and so far, they have not paid a political price for their obstructionism. Of course, Mr. Obama tried to run against the do-nothing Congress in 2014, and the result was that the GOP took control of both houses.

Maybe it would be different this time for the Pant Suit.  As Steve Waldman said about this strategy at the WaMo:

But if it could ever work, it’s now.  The most recent Economist/YouGov poll reported a 9% approval for Congress among registered voters. It is literally the most unpopular Congress in the history of polling.  Clinton can make the attack more effectively than Obama, because it won’t sound as much like blame-shifting.

And she could make running against Congress sound like change. She needs to shift some of her focus away from declaring the Pant Load unfit for office. That is, unless he keeps making more mistakes like his inexplicable PR disaster in Scotland.  If he does that, her speeches will write themselves, and he will keep sliding in the polls.

She should run to enact specific things that Congress has blocked – infrastructure spending, ending tax breaks for corporate off-shoring, and universal background checks for gun ownership. But she needs to distance herself from more from Obama on global trade deals. Consider this from the Detroit Free Press:

CNN’s exit poll, which surveyed 1,601 Michigan Democratic voters as they left their precincts Tuesday, showed that 58% of them believed trade with other countries costs jobs, compared to 30% who believe they create them. And among those who believe trade costs jobs, Sanders won by a large margin, 58%-41%.

Michigan is a key state for Clinton, and she needs to build a firewall in a few other states that Obama won in 2012, but where she now has some trouble, if the June 21 Quinnipiac polls for Florida, Ohio, and Pennsylvania are correct. The polls show Clinton with a clear lead in Florida (47%-39%), but locked in ties in Ohio (40%-40%) and Pennsylvania (42%-41%).

She has to keep the Pant Load from winning both Ohio and Pennsylvania, which right now, look to be toss-ups, meaning Trump could win both. Pennsylvania also has a number of swing House districts and an important Senate race, so Clinton must work hard there, even if it were completely in the bag for her. OTOH, PA elected a Democratic governor in the 2014 Republican landslide, and hasn’t gone red in a presidential election since 1988. This, from Booman:

For starters, Obama won in 2012 with 332 Electoral College votes to Mitt Romney’s 206. If we keep everything the same and award Ohio and Pennsylvania to Trump, the result is 294-244.

So, winning Ohio and Pennsylvania would be a start for the Pant Load, but without Florida, it’s hard to get from 244 to the 270 votes needed to win. In fact, without Florida, Trump would have to win Ohio, Pennsylvania, Virginia, New Hampshire and Michigan, while losing Iowa in order to garner a 277-261 victory.

It’s a long way to November, and who knows who will win? It’s difficult to believe it will be close, but we lived through two Nixon wins, so electing someone you dislike and distrust is nothing new for America.

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Brexit: Better for the Pant Load or for the Pant Suit?

Around here, Monday means a wake-up tune. We should have Brexit breakup music, but instead of song, we need to watch this video by Mark Blythe, a Scottish political scientist, and a professor of international political economy at Brown University, about the logic behind voting for Brexit:

Blythe makes more sense in 5 minutes about the EU, why Brexit happened, and some implications for the US, than the entire journalistic class has said using millions of words over the past few days. At 4:01, he says, “As I like to say to my hedge fund friends, the Hamptons is not a defensible [military] position.”

Let’s take a quick look at a few conclusions of the Brexit vote:

  • Rust cities and towns largely voted to Leave
  • Wealthy cities favored Remain
  • Rural areas that have not seen much immigration had seen a lot of austerity
  • Older voters wanted to return to the prosperous 1970s-1980s, regardless of whether that is realistic

Demographically, the most striking difference in voting was between young people and older people. A YouGov poll showed:

18-24: 75% voted for Remain
25-49: 56% voted for Remain
50-64: 44% voted for Remain
65+:     39% voted for Remain

So younger voters wanted to keep the option to be citizens of a larger economic unit, where they might find more and better job opportunity, while older voters wanted out of the EU for a variety of fact-based and fear-based reasons. On either side of the Atlantic, it’s a mistake to think that people know all the facts before they decide. From Seth Godin:

There are two common causes of uninformed dissent…The second (quite common in a political situation), is the tribal imperative that people like us do things like this. No need to do the science, or understand the consequences or ask hard questions. Instead, focus on the emotional/cultural elements and think about the facts later.

Our first Brexit lesson is that America has a huge base that is angry, scared, and possibly, more than willing to jump into the abyss. Sober analysts warned Britons that pulling out of the EU would be an economic and security debacle. But, as Matthew d’Ancona of The Guardian observed:

They heard the warnings, listened to experts of every kind tell them that Brexit meant disaster, watched the prime minister as he urged them not to take a terrible risk…And their answer was: Get stuffed.

Our second Brexit lesson is that nativism, anti-immigration fervor, and elite-bashing are potent tools.

There was a definite scent of “Make Britain Great Again” running through the Leave campaign. The Leavers urged Britain to “take control” of its borders. While we point at Mexico, they pointed at Turkey, which they said would flood the UK with immigrants, even though Turkey may never be a member of the EU.

You can call it racism, you can blame it on the “market” or, you can blame it on the economic circumstances created by the political elites steering the ship.

This resonates in the US because foreigners are a source of marginal cheap labor that corporations use to bludgeon our working class. That anger is partly justified. However, it is misdirected, because people only believe what they want to believe, and because it’s easier for working people to blame foreigners than to blame themselves for repeatedly electing an economic elite that just keeps playing them over and over.

Brexit is an important wake-up for the US presidential election. Britain’s uprising against the European Union is the sort of populist victory over establishment politics that could easily happen here. As the NYT said on Sunday:

Mrs. Clinton shares more with the defeated “Remain” campaign than a similar slogan — her “Stronger Together” echoing its [Remain’s] “Stronger In.” Her fundamental argument, much akin to Prime Minister David Cameron’s against British withdrawal from the European Union, is that Americans should value stability and incremental change over the risks entailed in radical change and the possibility of chaos if Donald J. Trump wins the presidency.

Hillary urges potential voters to see the big picture, while promising to manage economic and immigration upheaval, just as Mr. Cameron did. She is also a pragmatist battling against nationalist anger, cautioning that the turmoil after the Brexit vote underscored a need for “calm, steady, experienced leadership in the White House.”

But we are not the UK, and today, the ABC/WaPo poll has Hillary is up by 12 points, although we still have miles to go before 2016’s election night.

We will have future columns covering our neo-liberal policies, their impact on the American people, and their implications for 2016, over the coming days and weeks.

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Sunday Cartoon Blogging – June 26, 2016

Sunday cartoons return! Sorry for the hiatus, but it was unavoidable.

Quite the week. Did the sky just fall on the UK? We will have more over the next few days. There is still left-over emotion about Orlando. We had a sit-in by Dems, or as one wag said, it was the first time in years that Democrats stayed up past 10:00pm. But, did it achieve much? And of course, there is the 2016 presidential campaign.

Europe and the UK worked for nearly 70 years to put the EU together, and it is undone in an evening:

COW Brexit 2

The conventional economists’ view of what Brexit means:

COW Brexit 3

UK Prime Minister David Cameron misreads the people, pays the price:

COW Brexit 4

Orlando led to sit-ins, political and otherwise:

COW Sit In

Loyalty oaths were on display after Orlando:

COW Loyalty

Trump has less campaign dough than expected, but there was a benefit:

COW Bigger Hands

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Republicans vs. Yellen

Federal Reserve Chairwoman Janet Yellen appeared before Congress on Wednesday for her semi-annual testimony. This, from the NYT:

Ms. Yellen’s final appearance before the presidential election in November was a master class in how many members of Congress have allowed real debate about the country’s economic challenges to be subsumed in the broader political din.

The way the kabuki play works, the Fed Chair starts with prepared remarks that all committee members already have in their hands. On Wednesday, she flagged long-run headwinds to economic growth, and said considerable uncertainties remain for the economic outlook, including risks from China and the so-called Brexit vote in the European Union. Still, she offered a dose of optimism, noting a considerable step-up in second-quarter growth and strong consumer spending in recent months.

Then the Kabuki play moved to questions by Congresspersons. More from the NYT:

It probably tells you everything that you need to know about the current state of the Federal Reserve and monetary policy that in the first ten minutes of Yellen’s Q&A, much of the questioning revolved around issues such as bank regulation/capital requirements and the diversity hiring policies of the Federal Reserve System.

It seems that Congresspersons can’t be bothered drilling down about what the Fed is really thinking about the economy. Based on yesterday’s evidence, they cannot even be bothered learning what Fed policy actually is!

House Financial Services Committee Chairman Jeb Hensarling, (R-TX), said in his opening statement that the Fed is “complicit” in the failure of the Obama administration’s economic policies and the inability of the economy to grow above a 3% annual rate. (FYI, we have hit 3% or more just nine times in the past 16 years)

It got worse:

  • Bill Huizenga, (R-CA), said he’s worried the Fed has itself become a too-big-to-fail financial institution. Remember folks, the Fed can issue all the money it might require, so it is difficult to come up with a scenario where the Fed fails.
  • Representative Scott Garrett, (R-NJ), accused Ms. Yellen of unfairly aiding Wall Street and worsening income inequality. From the NYT:

“Why do you see a need to benefit Goldman Sachs?” he asked.

“I’m sorry, we are not trying to benefit the rich,” Ms. Yellen responded, before trying to interject that more than 14 million jobs had been created since the recession ended in 2009.

“Excuse me, I have the floor,” said Mr. Garrett,

  • Huizenga, (R-MI), said the Fed should also have to undergo a “stress test” like a big bank because of its $4.5 trillion balance sheet. Huizenga said he is worried the Fed is insolvent.

Yellen said the Fed has already undertaken this sort of exercise. Our balance sheet is very different…The Fed is very different from a commercial bank.

Then came the “excess regulations are holding the economy back” questions from Republicans:

  • Randy Neugebauer, (R-TX), says there has been a “buffet” of new rules put on banks with little thought of the overall impact. Yellen replies that the Fed is trying to “reduce the odds” that banks get in trouble, and that most banks are profitable.
  • Blaine Luetkemeyer, (R-MO), asks why no new banks are being chartered, again stressing burdensome regulation. Yellen says the challenging economic environment, not regulation, is the likely culprit.
  • Steve Stivers, (R-OH) says that Fed regulations have held down private investment.

Yellen says Fed regulations are not out of line with international standards and the safety and soundness of the banking sector has improved.

  • Sean Duffy, (R-WI) asked if government regulation was a headwind to growth, saying that businesses cite regulation as a headwind. Yellen replies: “Are you referring to our regulations?” (emphasis and brackets by the Wrongologist)

I’m talking about government regulations…Why don’t you cite it as a headwind?

It’s very hard to quantify the extent to which regulations… [are] headwind[s], she said.

After a fruitless attempt to get Ms. Yellen to call health insurance costs for Wisconsin manufacturers a headwind, Mr. Duffy gave up in a fit of pique.

I’ll accept that as a non-answer, he said.

This hearing is an object lesson in why average people hate Congress. Committee members had a chance to drill down on the country’s economic challenges, but see only another talking points opportunity.

Imagine what similarly ill-informed Congress critters might ask witnesses in front of a different committee, say, at the Judiciary Committee:

Is it really appropriate to hold confirmation hearings when your term ends in four years?  Do we really want to saddle America with a Supreme Court justice nominated by a potential lame duck president?

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Democrats’ Strategic Failure Continues to Haunt

When President Obama won re-election in 2012, Democrats increased their majority in the Senate, but the House of Representatives remained in Republican hands. In House races in 2012, 1.7 million more votes were cast for Democrats than for Republicans, but Republicans came away with 33 more Congressional seats.

How did this happen when in 2008, Republicans lost a “wave” election, and were looking at eight years in the minority? The Republicans were staring down a demographic tidal wave, and the Democrats were talking about a decade of changing politics. The Democrats had taken a super majority in the Senate. The real risk to the GOP was that, by the 2020 census, demographics could keep them in a semi-permanent minority for a very long time.

Then, along came a Republican strategist named Chris Jankowski. He had a strategy, one which the Democrats failed to react to. A strategy that turned a period of a likely permanent GOP minority to a GOP majority in four years. All of this is covered in “Rat-F*****: The True Story Behind The Secret Plan To Steal America’s Democracy“, by Salon’s editor-in-chief, David Daley.

Jankowski’s strategy was to gain control of as many state legislatures as possible in 2010. The plan was to control the state’s redistricting process for Congressional districts, once the result of the 2010 Census was available. That is because state legislatures draw most of the congressional boundaries across the country. The GOP’s plan was called REDMAP for Redistricting Majority Project. The idea behind REDMAP was to hit the Democrats in several state legislatures where Democratic statehouse majorities were thin. They targeted races with vast sums of money and were able to flip many state houses.

In 2009, Democrats held the majority of seats in both houses of the state legislature in 27 states. In six more, they held a majority in one house. The Presidency, the US Senate, and the House of Representatives were all in Democratic hands.

In 2010, Republicans gained nearly 700 state legislative seats, which, was a larger increase than either party has seen in modern history. The wins were sufficient to push 20 legislative chambers from a Democratic to a Republican majority.

Most significantly, the GOP took control over both houses of the legislature in 25 states.

REDMAP’s success was made possible by funding from a super-PAC called the Republican State Leadership Committee. It raised $30 million, mostly from corporations, of which $18 million was received just weeks before Election Day.

Pennsylvania is an object lesson: So skillfully were the lines drawn by the Republican legislature that in 2012, when President Obama carried Pennsylvania by 300,000 votes and the state’s Democratic congressional candidates collectively out-polled their rivals by 100,000 votes, Republicans still won 13 of Pennsylvania’s 18 seats in the House of Representatives.

In Michigan, the 2012 election was a huge success for Democrats. Voters elected a Democratic US Senator by more than 20 points and reelected President Obama by almost 10 points, but Republicans ended up with nine of the state’s Congressional seats to the Democrats’ five.

This was among the greatest political achievement in modern times. If you’re a Republican, you look at this and say, we played by the rules, we played within the law, and we won!

And the Democrats spent 2009-2011 asleep at the wheel, presiding over a catastrophic strategic failure.

Worse, the GOP plans were announced by Karl Rove in a March 2010 op-ed in the Wall Street Journal. Rove said they were going to use redistricting to take back the Congress. The GOP plan was in plain sight.

This takes us to Hillary Clinton’s possible choices for Vice President. Apparently, she is leaning towards Tim Kaine, (D-VA). Kaine is attractive in that Hillary needs to win in Virginia to win the presidency. Kaine is a Harvard-educated lawyer and was governor of Virginia from 2006-2010.

We mention him here since he was Chair of the Democratic National Committee from 2009-2011.

That’s right, it was Tim Kaine who the Republicans outsmarted with their REDMAP strategy. It is Tim Kaine who let the GOP place so many different locks on the door to Congress. Undoing that will take years of really concentrated effort, state by state, chamber by chamber. It’s going to take the Democratic Party at least until after the 2020 census to undo what Tim Kaine let happen in 2010 and 2011.

Perfect choice for VP. He’s the right guy to follow a Hillary Presidency.

In preparation for the next census, Democrats have come up with a REDMAP-like plan of their own. They call it Advantage 2020, and say they plan to spend $75 million.

Republicans have announced REDMAP 2020. Their spending goal?

$125 million.

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The Pant Suit vs. the Pant Load – Jobs, Part Infinity

We are in a time when a presidential candidate’s personality counts for more than the candidate’s policies. Candidates obfuscate on most policy issues and the media lets them get away with absolutely outrageous declarations of near-facts or outright half-truths.

One policy we must make them nail down explicitly is their jobs policy.

The key to making America great again is adding more jobs. Wrongo is a pest on this subject, but without more jobs, growth in GDP is harder to achieve. Tax revenues are more difficult to grow. People who are idle get into trouble.

The Pant Suit and the Pant Load know this, so they will talk from here to November about adding manufacturing jobs back to cities that lost them starting in the 1970’s. Those jobs are never coming back, but both of them are working hard to convince you they can do it. Consider this, from Parallel Narratives:

We’re now being told by folks who know better that all we need to do to bring those jobs back, to resurrect a future we can believe in, or make America great again, is to elect the outsider politician who is not beholden to elite interests like banks, CEOs and politicians. Unfortunately, that horse has left the barn, those jobs are gone for good…

A great example of a politician braying the “I can bring jobs back” mantra was in Sunday’s NYT business section’s column, “Preoccupations.” In it, a young couple had the option to work from home, so they moved from Austin, TX, that hot-bed of tech, to South Portland ME, not so techie. They work for two different firms from two home offices. Then, they are invited to attend a funds-raiser for a gubernatorial candidate: (emphasis by the Wrongologist)

The candidate raising campaign funds was a hard-working lawyer who seemed genuinely well meaning, but no one had told him that his economic platform of protecting manufacturing jobs and Maine’s traditional industries wasn’t going to fly with an audience of health care professionals, programmers, web designers and researchers…We muttered to each other that this guy didn’t have a place in his platform for people like us, many of whom worked for employers in other states. Our checkbooks stayed in our pockets.

If you hear this kind of BS from the Pant Suit or the Pant Load, your checkbook should also remain hidden.

While the low-wage jobs problem has been around for more than 40 years, America’s politicians are still peddling the same solutions. In fact, a new analysis from the White House’s Council of Economic Advisers (CEA) released Monday shows that only 88% of men ages 25 to 54 are participating in the US workforce. The CEA reports that the US has the third-lowest labor-force participation rate for “prime-age men” among the world’s developed countries. We have done so well that, on a percentage basis, Greece, Slovenia and Turkey all have more men working than the US does. Greece! The decline is concentrated among less educated. Here is a chart:

Male Labor Force Part by Edu

More than 95% of men used to work in 1964, regardless of their educational attainment. Today, you better have at least a bachelor’s degree if you want to be sure you will get a job.  But it is worse than that. The CEA said:

In recent decades, less-educated Americans have suffered a reduction in their wages relative to other groups. From 1975 until 2014, relative wages for those with a high school degree fell from over 80% of the amount earned by workers with at least a college degree to less than 60%.

Clinton and Trump would have you believe that the problem is bad trade deals with China, the TPP, or immigration. Trump in particular, is saying that the political elites have knowingly caused this all at the expense of the American worker. There is a modicum of truth to that, but it is the American corporation and the American tax code that is closing out US jobs, and hammering the middle class. American corporations now pay about 11% of our total US taxes, down from about 30% of US taxes in 1960, as jobs (and markets) have moved abroad.

What are the Pant Suit and/or the Pant Load going to do in the face of advancing automation now facing us not just in manufacturing, but also in the service and knowledge industries?

It is time to make the candidates talk about this on the campaign trail.

The basic policy choice we have is to put people to work, or to continue to allow the profit motive to dominate. If the profit motive remains supreme, we will continue our relentless drive to reduce labor costs — by eliminating jobs, or by paying workers less for the same work.

To date, our leaders have chosen the latter path, and we have reaped the results. We have become a land of spreadsheets and flags.

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The FBI and Omar Mateen

(Sorry for the lack of posts. We went straight from the trip to Santa Barbara to visit with my brother who is now in hospice. His story is a column for another day, but helping his wife has been our number one priority for the past few days.)

The Orlando killings are being covered exhaustively on all media outlets. There is no time yet for perspective, but Wrongo uncovered a few very interesting facts in researching a future column about the role of the FBI in domestic terrorism, and rather than hold them back, here they are for your consideration:

First, we learned today that Omar Mateen’s wife allegedly tried to talk him out of the Orlando attack. Apparently, his wife was with Mateen when he bought ammo AND she once drove him to Pulse “because he wanted to scope it out”, reports the NY Daily News. An Orlando Grand Jury will get her involvement to chew on.

Second, there are at least four data points that should have indicated to the FBI that Omar Mateen was gay, or at least, closeted:

  • He hung out with a friend from high school, who is a drag queen, and the friend’s lesbian co-worker friends
  • He asked out a fellow (male) student while in cop school
  • He used a profile on a gay dating site
  • He had been going to Pulse for at least 3 years

That all likely adds some doubt to the story that he killed at the Pulse solely on behalf of ISIS, which is the theory the FBI fed the media on Sunday. Some in the gay community think this attack was more about Mateen struggling with his own sexuality than with ISIS.

But, for now, terror “pundits” are working very hard to turn Mateen’s claims of affiliations with several Islamic groups (Hezbollah, al-Nusra, and ISIS, as well as the Tsarnaevs) into some kind of coherent world view that could explain his actions as Islamic terrorism.

The FBI says they had a 10-month tail on him, which you would think should have identified the many two hour-long round trips to Orlando Mateen took to hang out at Pulse, which according to witnesses, were taking place at the time of the investigation. Did the FBI know about these things?

That is not to say that Mateen didn’t have an attraction to Islamic extremism.

OTOH, it’s doubtful that the FBI’s checklist of things to look for when investigating someone making claims such as “I luv ISIS” or “I’m with Al Qaeda” includes a box for “closeted gay male having difficulties with his sexuality”.

Third, Spencer Ackerman of The Guardian has new details on what it was that got Omar Mateen on the FBI radar in 2013: He claimed to have a tie to the Tsarnaev brothers:

Omar Mateen…told co-workers at the private-security firm employing him that he knew Tamerlan and Dhzokhar Tsarnaev, according to a source close to the investigation who requested anonymity.

The FBI interviewed Mateen on two occasions in 2013 related to his purported connection to the Tsarnaev brothers, the first known time Mateen drew the attention of federal law enforcement.

At the time, the FBI was focused on a member of Orlando’s Muslim community, who was actually related to the Tsarnaev brothers, Ibragim Todashev. In May of 2013, the FBI killed Todashev in his own Orlando apartment, in the midst of interviewing him.

That’s not to say Mateen had a tie. Even though the Tsarnaevs lived in Boston, Todashev lived in Orlando at the time Mateen was making his claim about knowing the Tsarnaevs, and Mateen must have been aware of Todashev’s demise.

And finally, didn’t the FBI wonder at all about the shooter’s father, Siddiqi, who posted YouTube videos praising the Taliban (in Dari) and promoting Pashtun nationalism? Those seem like the sort of things that might be red flags.

It is true that Islamic extremists want to attack this country. If you’re a Muslim wanting media attention, the easiest way to get it is to say that word, “ISIS.”

That’s a guarantee law enforcement will give your case much more attention than it gives investigating the Bundy brothers.

That is, except in the case of Mateen.

We need to look closely at the FBI’s role in the lead-up to the Pulse shooting, if only to scope out the “lessons learned” for the future.

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Can the GOP Edge in the Primaries Carry Over?

(Note: There will not be a Sunday Cartoon post again this week. Wrongo and Ms. Right will be in Santa Barbara CA for our granddaughter’s college graduation. Blogging will resume on Tuesday, 6/14)

In 2008, the Republicans turned out a total of 20.8 million votes in 45 Primaries. In the 2016 primaries, the Republicans grew that total to 28.6 million votes.

The Democrats have 27.7 million primary votes in 2016, before the DC primary. When Clinton and Obama ran against each other in 2008, they had 37.4 million votes.

So the GOP is up 7.8 million votes or a 37.5% increase over 2008. The Democrats are down nearly 26% or, 9.7 million votes. The parties were separated by only 900,000 votes by the end of the 2016 primary season, and the GOP was on top.

The question to ask the pundits: What does the Republican increase in primary voter turnout by almost 8 million, and the Democrats’ vote shrinking by almost 10 million mean for the general election?

We could talk about the populist turn in 2016. The electorate is rebelling against the establishments of both parties. We could point to the insecurity about jobs, social security and pensions for the 98% of America who know these things are no longer certain in today’s America, and are even less certain in tomorrow’s America. These have made the Bernie promise of free education, Medicare for all, and a break-up of the banks very popular with Millennials. Trump has understood the economic fears of the white middle and lower classes, and has added fear of Muslims, fear of Mexican immigrants and a longing for a simpler world where America was unchallenged, and the 40-hour work week was nearly a right, to be the aspirational standard for tomorrow’s America.

We could talk about Hillary Clinton and the enthusiasm gap. In 2016, Hillary has garnered 15.7 million votes, and she will win the nomination. In 2008, she received 18.1 million votes, 2.4 million more than she got in 2016, and lost. This time around, she was not facing one of the best retail politicians of the last 100 years in Barack Obama, and no one thought that Bernie was real competition, until he was.

So, America is now at a point where, for the Pant Suit vs. the Pant Load, these numbers really begin to matter. Let’s remember that primary turnout doesn’t necessarily translate into a reliable indicator of the turnout in the general election.

Also, over half of the GOP turnout was for candidates other than Trump. Voter preference may change significantly for the general election.

This election will be true to previous form and will be decided in just a few states: Ohio, Florida, Michigan, North Carolina, Virginia and Pennsylvania will likely decide the outcome. Obama won all but NC in his 2012 race against Mitt Romney.

Assume that Hillary will win the majority of blacks, Hispanics, other ethnic minorities and many white women. The biggest question is: What percentage of women will vote for Hillary? If Trump peels off enough, he may be able to win in a few of those states.

So, turnout will be key. As an example, Charlie Crist would be the current governor of Florida if just 50% of the African American voters who were registered Democrats, had voted in the last gubernatorial election. In just in one (populous) Florida County.

The gap in the primary voting numbers are a good indicator that the GOP primary voters were more enthusiastic than were Democratic voters in 2016. However, the Democrats were very good at “Get out the Vote” programs in 2008 and 2012. Can Donald Trump match that in 2016?

Hillary starts with better odds of winning since the Democrats have an Electoral College advantage. Romney won 206 Electoral College votes. He lost Colorado, Florida, Ohio, Pennsylvania and Virginia each by between 150,000 and 250,000 votes. So, it’s conceivable that the enthusiasm for Trump in these states combined with less enthusiasm for Hillary could give him an Electoral College victory.

OTOH, Trump can’t change who he is. He’s not going to go toe to toe with Hillary on wonky policy details. So, he’ll continue the campaign that won him the primary in the general.

Will Pant Load fatigue set in? It hasn’t yet.

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More Questions for The Pant Suit and the Pant Load

Yesterday, Wrongo broke the bad news about the May job report. Exactly one year ago, Wrongo wrote “Technology Isn’t Creating Enough Middle Class Jobs.” That article spoke about how deploying new technologies continues to cost more and more mid-skilled jobs.

With low interest rates, the cost of capital investments have fallen relative to the cost of labor, and businesses have rushed to replace workers with technology. Because of technology, since the mid-1970s capital and labor have become more substitutable, and it’s a major global trend. Some proof of this is in the article in the Quarterly Journal of Economics, where  Loukas Karabarbounis and Brent Neiman from the University of Chicago found that the share of income going to workers has been declining around the world.

As Brad Delong, economist at the University of California, Berkeley, wrote recently, throughout most of human history, every new machine that took the job once performed by a person’s hands and muscles increased the demand for complementary human skills — like those performed by eyes, ears or brains.

This is no longer true. From Wrongo’s June, 2015 column:

Facebook is touted as a prime player in the knowledge economy, but it only employs 5,800 to service 1 billion customers! Twitter has 400 million total users. It has 2,300 employees.

What is the value of Facebook and Twitter to the jobs economy? These are two of our very “best” success stories, and they only employ 8,100 workers.

These firms have had a huge impact on society, but the total jobs they have created are only a rounding error in our economy.

As the idea sinks in that human workers may be less necessary than in the past, what happens if the job market stops providing a living wage for millions of Americans?

How will people afford to pay the rent? What will happen if the bottom quartile of workers in the US simply can’t find a job at a wage that could cover the cost of basic staples?

What if smart machines took out the lawyers and bankers? Bloomberg is reporting that job loss is on the way for bankers. Banks are racing to remake themselves as digital companies to cut costs. In other words, they’re preparing for the day that machines take over more of what used to be the sole province of humans: knowledge work. From Bloomberg:

State Street had 32,356 people on the payroll last year. About one of every five will be automated out of a job by 2020, according to Rogers. What the bank is doing presages broader changes about to sweep across the industry. A report in March by Citigroup…said that more than 1.8 million US and European bank workers could lose their jobs within 10 years.

They close by saying that Wall Street will go on—but without as many suits.

Some estimates say that automation could cost half of all current jobs in the next 20 years. The OECD thinks the number is smaller. They argued last month that lots of tasks were hard to automate, like face-to-face interaction with customers. They concluded that only 9% of American workers faced a high risk of being replaced by an automaton.

9% of today’s American workforce equals 13.6 million jobs. It just took us seven years to gain 14.5 million jobs, most of which were contractors and temp jobs.

The prognosis for many medium and some higher-skilled workers appears grim.

The corporatists have seen these forecasts. It explains their unwillingness to do anything serious to create effective jobs programs here at home. They don’t need to do anything, because there is a (virtually) infinite supply of skilled and unskilled workers in the overpopulated third world.

So, these are today’s questions for the Pant Suit and the Pant Load, and their answers need to be specific:

  • Where will the household’s income come from when jobs alone can’t provide it?
  • How will we deal with large-scale inequality that requires large-scale redistribution?
  • Is it time to think about how to provide more income that isn’t directly tied to a job?

From Eduardo Porter:

For large categories of workers, wages are already inadequate. Many are withdrawing from the labor force altogether. In the 1960s, one in 20 men between 25 and 54 were not working. Today it’s three in 20. Although the population is generally healthier than it was in the 1960s; work is almost uniformly less demanding. Still, more workers are on disability.

The issue is not technology, or robots, or restoring our manufacturing base. It isn’t better skills, or technology or outsourcing. We have too many people chasing too few good jobs.

This is why we need the presidential candidates to speak the truth about job creation in America.

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