Jan 252010
 
harryMitchellARIZ

TOO MUCH

January 25, 2010 [print_link]

Tracking excess and inequality

harryMitchellARIZ

Free-marketer, avuncular Arizona Rep. Harry Mitchell (D) sees nothing wrong with obscene wealth.

Paul Volcker, the Financial Times believes, has finally come “in from the cold.” Remember Paul Volcker? Right after the 2008 elections, many thoughtful economic analysts hoped the new President Obama would consider Volcker, a former Federal Reserve Board chair, for the top slot at Treasury.

The reason? Volcker had emerged, over recent years, as a principled critic of excess at the top of America’s economic ladder. He had vigorously opposed attacks by wealthy families on the estate tax. In 2008, he blamed the global high-finance meltdown on Wall Street’s wild, unregulated chase after personal fortune.

But the new White House would end up giving Treasury to the Wall Street-friendly Timothy Geithner. The 82-year-old Volcker would be named, instead, to chair the White House’s Economic Recovery Advisory Board – and then ignored.

Until last week. On Thursday, the President, with Volcker at his side, proposed new regulations that directly challenge the source of beaucoup bank riches. Does this White House embrace of Volcker signify a new willingness to confront our richest? We can only hope so. Those richest, says a new Capitol Hill analysis, have never been richer. We have the details in this week’s Too Much.

 

GREED AT A GLANCE

George W. Bush may be history, but support for extending his tax cuts for America’s rich is growing – among Democrats. The Bush tax cuts will all sunset at the end of 2010 unless Congress acts to extend them. And Congress should do just that, says Rep. Gerry Connolly, a Virginia Democrat. A Dow Jones reporter last week found Connolly arguing for the “logic” of “leaving well-enough alone for now, given the fragility of the economic recovery.” Rep. Harry Mitchell, a Democrat from Arizona, is urging President Obama to reject any rate hike on the taxes the wealthy pay on capital gains, dividends, and top-bracket income. Says Mitchell: “We need to retain these tax cuts that encourage investment that stimulates growth and job creation.”

If Congressmen Connolly and Mitchell need some evidence for their contention – and conviction – that we can’t afford to tax a single more dollar out of rich people’s pockets, they can find plenty in the luxury game sector. That sector is creating jobs right and left, to meet the booming demand for “sculptural table-tennis tables” that go for $40,000 a pop and hand-crafted chess sets that retail at $55,000. Esquire magazine just hosted a show in Manhattan that featured the jazziest of these “investments” in home entertainment. The biggest buzz-generator of them all: an $80,000 pool table that electronically tracks pool balls as they roll, “revealing a hidden image on the table’s felt.” Today’s young affluent male, says Esquire publisher Stephen Jacoby, “deserves to enjoy himself.”

This year’s Super Bowl, the 44th all-time, will feature a first: a “super fleet of luxury armored limousines.” Some 25 bullet-proof Vault-brand limos will be converging on Miami from a Dallas company that specializes in helping “people of wealth, power, and fame” better face “threats to their personal well-being.” Each new armored limo, says Vault PR chief Wally Lynn, offers “customers a luxurious environment” where they can “relax, have fun, and minimize risk.” Limo armoring first became a lucrative business over a decade ago in Brazil, then the world’s most unequal nation. Over 120 firms are now armoring up vehicles for Brazil’s affluent, and the tab has dropped from $55,000 to just $22,000 an auto . . .

High up in the Alps, the awesomely affluent worry more about snow tires than car armor. “White weeks” – ski holidays at exclusive alpine resorts – have become de rigueur for many of the world’s most financially fortunate. The most exclusive resort for the glitterati: Courchevel 1850 in Three Valleys, France. Property at Courchevel averages about €37,000 per square meter, a price that puts a 1,000-square-foot chalet at just shy of $16 million. If you’re only planning on a daytrip, be forewarned. In Three Valleys, says a new report on Europe’s ten most expensive ski resorts, you won’t find a beer under $6.50 in the entire town . . .

Alpine ski resorts are having their best winter in years. But that’s not the only sign the recession has ended – for the global super rich. Sales for the international luxury retailer Richemont, maker of Cartier watches among other baubles, jumped 25 percent in 2009′s last quarter. Meanwhile, over in India, deep pockets have already snapped up that nation’s entire 2010 allotment of the new $600,000 Rolls-Royce Ghost. The first of the 60 new cars will be delivered next month. Luxury automakers are also funneling new cars to Saudi Arabia. The most prized: the new $1.6 million Zonda from Pagani, an Italian specialty house.

 

Wall Street’s Bonus Binge in Perspective

A relative handful of Americans, says a key congressional panel, will take home more this year than half the nation’s taxpayers combined.

Americans worried about the ever-intensifying concentration of wealth at America’s economic summit have been focusing of late, quite understandably, on the latest annual round of Wall Street bank bonus awards.

But we now have even more reason to worry about our savagely unequal distribution of income and wealth – from researchers at the congressional Joint Committee on Taxation. Earlier this month, that panel released income estimates for the coming year. They make for a sobering read.

In 2010, the tax panel calculates, a little over 1 million U.S. taxpayers will report incomes over $500,000. These 1 million top-earners will collect an astounding $241 billion more in income this year than the just under 80 million taxpayers who will take home less than $40,000.

Tax GapWall Street’s movers and shakers did their best last week to camouflage their contribution to this enormous national income imbalance.

At Goldman Sachs, CEO Lloyd Blankfein announced that his giant bank would be devoting a mere $16.2 billion to the pay pool for Goldman’s 32,500 employees, far less than the $20 billion-plus that financial analysts had expected.

Goldman, overall, is devoting only 35.8 percent of the bank’s record 2009 revenue to compensation. Last year, pay ate up 48 percent of Goldman revenue.

Goldman’s chief financial officer, David Viniar, wants all of us to consider this smaller payout share a thoughtful, conscientious bank response to widespread public concern over excessive banker compensation.

“We are not deaf to the calls for restraint,” noted Viniar, “and we heard them.”

Restraint? Even with the smaller share of bank revenue going to pay, the “average” Goldman employee will pocket $498,153 for the year.

Relatively few Goldman employees, of course, will actually see anything close to half a million dollars. Goldman’s top bankers and traders, as always, will see far higher rewards than the bank’s clerks and receptionists.

How much higher? We won’t know the details until later this year when New York state attorney general Andrew Cuomo will release his analysis of bank payouts.

One significant Goldman Sachs shareholder isn’t waiting to find out. The public agency that runs mass transit in the Philadelphia area last week filed suit against Goldman executives for their ongoing bonus grab.

“Goldman’s employees are unreasonably overpaid for the management functions that they undertake,” the Southeastern Pennsylvania Transportation Authority lawsuit charges.

The plaintiffs may want to call billionaire investor Warren Buffett to testify on their behalf. Buffett last week exploded at the sheer greed he continues to see on Wall Street. Any bank CEOs who go to the government for bailout billions, Buffett told Fox Business News, should have to “forfeit all their net worth.”

“Make it so the CEO of the institution that fails or that goes to the government and needs help really gets destroyed himself financially,” said Buffett. “I mean, why should he come out any better than somebody who gets laid off from a job as an autoworker?”

Goldman Sachs has so far repaid the $10 billion in bailout aid the bank collected under the federal TARP program. But the bank received another $43.4 billion of direct benefit from other bailout programs that has never been reimbursed.

The American people may not know these exact numbers. But they get the drift, and their support for taking on Wall Street is soaring. A Washington Post-ABC News poll, released Thursday, found that 73 percent of Americans would support “a special tax on bonuses over $1 million.”

By a 72-to-19 percent margin, adds a new CBS poll, Americans now feel that the federal bailout has benefited “mostly just a few big investors and people who work on Wall Street.”

That judgment may be a but unfair. Last week, after all, Goldman Sachs did earmark $500 million of its revenue for charity. That truly magnanimous gesture steers into good works all of 1 percent of the company’s record 2009 rake-in.

 

In Review

Class Struggle at the Corporate Summit

Lucian Bebchuk, Martijn Cremers, and Urs Peyer, CEO Centrality. Harvard University John M. Olin Center for Law, Economics, and Business, Discussion Paper No. 601,

“Honor among thieves” may or may not exist. We just don’t have the data to know for sure. But sharing among top corporate executives? We now know, with some serious scholarly certainly, that America’s CEOs do not share the wealth – with their fellow corporate executives.

Harvard’s Lucian Bebchuk, Yale’s Martijn Cremers, and the Swiss economist Urs Peyer have been publishing academic research on compensation within top executive teams for several years now. Last week, the trio summed up their exhaustive work in a more popular paper.

In the United States, this paper details, CEOs are receiving a disproportionate share of the pay that goes to the top five execs of American corporations. On average, the numbers show, U.S. CEOs now grab 35 percent of the compensation corporations lay out for their top five officers.

This share, over recent years, has been steadily increasing.

Should we care? Bebchuk, Cremers, and Peyer think so. The higher a CEO’s share of the executive loot, their analysis shows, the shakier the performance of that CEO’s company – in everything from shareholder return to mergers and acquisitions. Companies with CEOs who make tons more than their executive colleagues tend, simply put, to do dumb things.

Why? Bebchuk, Cremers, and Peyer surmise that “the ability of some CEOs to capture an especially high slice might reflect undue power and influence over the company’s decision-making.”

In other words, CEOs who make much more than the people around them don’t have more smarts than anybody else. They just have more power.

 

••••

Too Much is published by the Institute for Policy Studies: Ideas into action for peace, justice, and the environment. 1112 16th St. NW, Suite 600, Washington, DC 20036. (202) 234-9382. E-mail: editor@toomuchonline.org.

Did you like this? Share it:
 Posted by at 8:05 pm
Jan 252010
 
piñera-chile-election-pinera_full_380

January 19, 2010  [print_link]

Editors’ Note: Rightwinger Sebastian Piñera, a Chilean “Berlusconi”, just won a runoff election against his liberal opponent, a man who represented a dilapidated centrist coalition (“the Concertación”) whose tenure in terms of corruption and betrayal of authentic left measures opened the road to a re-emergence of the Right. This is painfully reminiscent of what’s happening in the US, where the Clinton-Obama regimes, with their opportunistic policies and catering to the plutocracy, are also pushing the U.S. toward the Zombie Right. Incidentally, although we regard this piece as noteworthy, we are somewhat uncomfortable with the author’s characterizations of Pres. Hugo Chavez.

The Future of the South American Left

Chile’s New Right

By NIKOLAS KOZLOFF

piñera-chile-election-pinera_full_380

Piñera celebrates victory.

For those who believe that South America is in the grip of some kind of left revolutionary fervor, this week’s election in Chile may have come as a surprise.  With partial results from 60% of the country’s polling stations now available, it appears that conservative billionaire Sebastian Piñera has ousted the ruling center left Concertación, 52% to 48%.  It is a stunning upset in light of the fact that the right has not won an election in Chile for fifty years. It’s an ironic and difficult pill to swallow for the governing coalition, made up of Socialists and Christian Democrats.  Current president Michelle Bachelet, herself of the Concertación, is enormously popular. Chile’s first woman president, she enjoys an approval rate of nearly 80%.  Unfortunately, Chilean law prevents immediate reelection and so Bachelet will have to wait until 2014 if she wants to run again.

As a result of the legal restrictions, Concertación ran lackluster candidate and former president Eduardo Frei who pledged to uphold modest continuity of Bachelet’s welfare programs.  It’s a big setback for the Concertación, which has ruled Chile since the end of the Pinochet military dictatorship in 1990.  Despite Bachelet’s personal popularity, the coalition has become synonymous with corruption. Piñera, a kind of Chilean Berlusconi who owns a television channel amongst other business holdings, and who piloted his private helicopter around the country to make campaign stops in isolated regions, is one of the word’s 700 richest people.  The politician opposes human rights prosecutions for military and police officers implicated in abuses during the Pinochet military dictatorship, and as such represents a political step backwards for Chile.

Piñera also stands against reform of the Chilean constitution, a relic of the Pinochet era.   Moreover, some members of Piñera’s coalition served in General Pinochet’s cabinet, and Piñera’s brother was the general’s labor minister and an architect of the dictator’s neo-liberal economic strategy. A much better electoral outcome for Chile would have brought Marco Enríquez-Ominami to power.  An intriguing and novel figure on the Chilean political scene, Ominami is an independent who broke away from the Concertación.  A youthful 36-year old filmmaker and son of a leftist revolutionary leader killed by Pinochet’s army during a 1975 firefight, Ominami resigned his position as a socialist congressman to run for president.  Memorably, he called his opponents “dinosaurs … who kidnapped democracy” and called for scrapping Chile’s bicameral Congress in favor of a single chamber of parliament elected by proportional representation.

Though Ominami got the endorsement of Chile’s newly formed Ecologist party and benefited from voter fatigue with the Concertación, he was eliminated in the first electoral round after garnering 20% of the vote.  Particularly unfortunate was Ominami’s failure to electrify Chilean youth disaffected with the political establishment.  In recent years youth has shown some signs of engagement, and could constitute a potent political force for change in future. In 2006 during the so-called “penguin revolution,” tens of thousands of high school students, many wearing uniforms with little dark ties on white shirts, protested throughout Chile to demand educational improvements.  Shocked by the protests, Bachelet wound up negotiating with student leaders and actually gave in to most of youth’s demands.

Bachelet_Jefes_Estado2

Outgoing president Bachelet remains very popular but cannot run for a consecutive term.

Though disappointing, the electoral turn of events in Chile should not come as an incredible shocker.  With the exception of students and Mapuche Indians who have been fighting for land rights, Chile has not seen the emergence of dynamic social forces in recent years which could move the political agenda forward. It’s a reality sorely bemoaned by veterans of Chile’s historic political struggles.  Manuel Cabieses is a journalist who I interviewed in Santiago for my book Revolution! South America and the Rise of the New Left (Palgrave-Macmillan, 2008).  During the 1960s, Cabieses was a reporter with the Communist party paper and was picked up the military two days after General Augusto Pinochet took power in a coup d’etat.  Cabieses was later imprisoned but made his way to Cuba after being released.  Astonishingly, he later returned to Chile and worked with the underground Revolutionary Leftist Movement (known by its Spanish acronym MIR) against Pinochet.  Today, he publishes a political magazine called Punto Final.

The media environment in Chile has proven challenging for the likes of Cabieses.  Unlike Venezuela for example, Chile has no television station that espouses the views of the left.  There are two left-wing bi-monthlies, El Siglo of the Communist Party and Punto Final.  Both have notoriously low circulation.  The Communist Party owns a radio station, and there are a few other progressive leaning stations.  On the internet there is more political diversity than in TV and print, but digital media is still incipient in Chile where most people lack internet access. Without a vibrant progressive media, progressive forces have had difficulty getting off the ground.  The Mapuches, Cabieses said, were “atomized” just like the rest of society and the most radical Indians had been beaten back and repressed by the police.  Labor unions meanwhile had suffered a severe decline since the 1970s.  “The dictatorship,” Cabieses remarked, “through repression and imposition of its economic model, were able to fracture social movements and almost succeeded in liquidating any kind of left political movement.”

***

Just a few years ago it seemed as if the left was sweeping across South America, but the question on many observers’ minds right now is whether this tide may be turning.  Already, the mainstream media is salivating over the prospect that Hugo Chávez and his ilk may have hit a road block. In a recent Newsweek feature entitled “Latin America isn’t tilting left, it’s tilting right,” Mac Margolis writes that many voters throughout the region are experiencing incumbent fatigue coupled with the fallout of the economic downturn.  In this sense, what is happening politically in South America might bear some resemblance to the United States where voters have become dissatisfied with Obama and the Democrats in Washington.

“Another explanation,” Margolis writes, “might be that the Latin American left is no longer what it used to be. Or rather, it was never what it was made out to be.”  “Make no mistake,” he writes.  “Beating the gringo devil and bashing capitalism can still make pulses race in much of the hemisphere, but, when it comes to casting ballots, what appears to move the majority is pragmatism.” Juan Forero, no friend of the Chávez regime in Venezuela, has also chimed in.  Writing in the Washington Post, he remarks that while the right is not making a comeback pragmatists are on the upswing.  “Voters,” he says, “are showing a preference for moderates rather than firebrand nationalists who preach class warfare and state intervention in the economy.”

There’s a bit of smug self satisfaction here though Forero’s argument is worth considering.  Take a look at Chile’s major political figures and it’s clear they hardly differ in the nature of their proposals.  Bachelet has pumped money into social programs and publically criticizes neo-liberal economics and the Washington Consensus.  Fundamentally however she never rocked the broad consensus around free trade and Chile’s fiscal conservatism.  So ingrained is free trade in Chile that even had the Concertación won, the country would not have shifted its adherence to this underlying economic ideology.

***

Such pragmatism and political conservatism is bad enough in Chile, but what is really distressing is the possibility that such a trend could spread into neighboring countries and thereby derail the left within the wider region.  Indeed, 2010 is fast shaping into an anti-incumbent year which could water down and dilute many recent political gains.

Take for example the case of Brazil.  Though Lula of the Workers’ Party has promoted important anti-poverty programs, Brazil boasts one of the most conservative monetary policies on earth.  After he rattled financial markets during his first presidential campaign in 2002, Lula won over skeptical investors by embracing economic pragmatism.  Brazilian labor may not care for such economic policies, but the fact is that Lula, like fellow pragmatist Bachelet, is enormously popular. But now the Brazilian left, such as it is, may be headed on a similar collision course to Chile.  Like Bachelet, Lula is barred by law from running for a third consecutive term.  He has backed his chief of staff, Dilma Rousseff, to be his presidential successor and to run in the October, 2010 election.  However, Rousseff has little political savvy and none of Lula’s charm and charisma. In polls, she trails centrist São Paulo governor José Serra of the opposition Brazilian Social Democracy Party or PSDB.

Regardless of who wins, neither candidate is expected to undertake dramatic changes to Lula’s market friendly policies.  Investors meanwhile are enchanted by a race between two mainstream candidates.  For its part, the left is placing its hope in either Ciro Gomes, a former governor of the state of Ceara, or Marina Silva. Lula’s former minister of the environment, Silva has said she might run on the green party ticket.  A remarkable woman whose personal story I recount in great detail in my upcoming book, No Rain in the Amazon: How South America’s Climate Affects the Entire Planet (Palgrave-Macmillan, April 2010), Silva could appeal to women voters, amongst others.  However, she trails in popularity and polls show that voters are more interested in jobs, crime and other concerns more than the environment — Silva’s signature issue.  Moreover, the green party has little clout and is viewed as fringy.

 

The new president-elect displaying his populist touch.

Piñera striking a "man of the people" posture. The Right's victory underscores the short memory of peoples and the eroding effect of pseudo left governments.

With pragmatism on the rise, South America needs to foster the creation of a solid bloc of left leaning countries that can counter Brazil’s huge political influence throughout the region.  The problem however is that within the immediate neighborhood there are very few candidates which could fill this void. Across the border from Chile in Argentina, the Peronist party stands for the political and social status quo and President Cristina Fernández de Kirchner’s political fortunes have waned as of late.  Uruguay and Paraguay have progressive leaders but have been rather centrist and politically quiet.  In any case, neither country carries much economic weight.  That leaves the perpetually convoluted Andean region.  The problem here however is that Colombia and Peru still have right wing, pro-U.S. regimes in power and the future does not bode well for the left.

“To the Latin left,” remarks Mac Margolis of Newsweek, “there is no leader more reviled than the Colombian president [Álvaro Uribe].”  Nevertheless, there is no denying that Uribe, who has clamped down on FARC guerrillas and revamped bullet-ridden cities like Bogotá, Medellín and Cali, enjoys huge popularity.

If Colombia’s constitutional court rules that he can run for a third term in the May, 2010 election Uribe would probably win.  Even if the change is not put into place, experts anticipate that Uribe’s handpicked successor Juan Manuel Santos would prevail in the election.  In Peru meanwhile, disgraced former President Alberto Fujimori’s daughter Keiko is a political frontrunner for the 2011 election and wants to pardon her father for past human rights abuses and crimes against humanity.  Ollanta Humala, a dubious left populist, trails in polls.

At least Venezuela, Ecuador and Bolivia don’t seem to be moving towards pragmatism.  But more than ten years on, Chávez’s Bolivarian Revolution remains a bundle of social and political contradictions.  The ALBA barter program, creation of an alternative Sucre currency and Bank of the South are all positive and innovative initiatives which stand to foster alternative economic development.  If they are designed in such a way as to encourage radical democracy and not top-down decision making, the communal councils ought to continue and to be strengthened. In other ways however Chávez has conducted himself as a rather conventional populist advocating for classic resource nationalism.  There may be a ceiling on the Chávez model, however: if oil prices surge again expect Venezuela to gain new adherents.  Otherwise, one might expect the Bolivarian alliance to lose traction.  If the opposition can unite for legislative elections in December, 2010, it could win a majority as recession, inflation and mismanagement erode Chávez’s support.

In any case, Chávez has already lost some ground in Central America with the toppling of ally Manuel Zelaya.  In El Salvador, the new left under Mauricio Funes seems more partial to Brazilian pragmatism than any kind of populist, Chávez-style populism.  Chávez himself meanwhile seems to have become mentally unhinged and recently remarked that former Ugandan dictator Idi Amin was a “patriot.”  Such comments suggest that the South American left should look elsewhere for a new standard bearer. Andean populists confront other contradictions and problems, chief amongst them the extractive model of development.  Across the region, leaders have been pushing boondoggle infrastructure projects in order to facilitate the export of raw resources.  Historically, this extractive model has not fostered equitable economic development let alone social harmony.

As I’ve been writing on my blog Senor Chichero, Ecuador is enmeshed in oil extraction and this has sparked deep social and environmental unrest.  Apprehensive about oil development proceeding on their lands, Indians recently protested the Correa regime by blocking Amazonian roads. Condescendingly, Correa called Indians “infantile” for objecting to legislation which would deny them consultation on mining and oil drilling projects.

Tragically, protests along the blocked roads led to violence. The Indians claimed that 500 police attacked them which resulted in two deaths and nine wounded by gunshots. The Correa government, the Indians declared, had “blood on its hands” and pledged to carry out international legal action over violations of their collective and human rights. Because of these inherent contradictions, the most politically and socially hopeful country right now in the Andean region is not Venezuela or Ecuador but Bolivia. That’s not too surprising given the nation’s long tradition of grass roots indigenous mobilization.  Indeed, it was the Indians who propelled Evo Morales to his recent and second electoral victory which has solidified the president’s desire to proceed with his socialist program.

Less messianic than Chávez, Morales has also pursued resource nationalism and has a compelling vision of Bolivia as a “plurinational,” multi-ethnic state.  However, unless electric cars take off and Bolivia becomes an energy powerhouse by developing its lithium deposits, Morales won’t have nearly as much cash to throw around as Chávez.

***

South America is no longer following a right wing political trajectory or extreme economic neo-liberalism. However, as Chile demonstrates, the region could easily fall into uninspiring pragmatic leadership. From the United States, it’s easy to romanticize South America as being in the throes of dramatic political upheaval and a move towards some kind of radical left.  The reality however is that right now social movements, with the possible exception of Bolivia, are not powerful enough to truly effect deep seated change or to transform the intrinsic, fundamental structures of society. If Chile becomes a trend and Brazil elects more uninspiring pragmatic leadership, the South American left will have to reinvent itself if it wants to remain relevant in future.

Nikolas Kozloff is the author of the upcoming No Rain In the Amazon: How South America’s Climate Change Affects The Entire Planet (Palgrave Macmillan, April 2010). Visit his website, senorchichero.


Did you like this? Share it:
 Posted by at 4:46 pm
Jan 252010
 


The question for Democrats is whether there is anything that will wake them up to their obligation to extend a powerful hand to ordinary Americans and help them take the government, including the Supreme Court, back from the big banks, the giant corporations and the myriad other predatory interests that put the value of a dollar high above the value of human beings. Now even mainstream liberals like Bob Herbert (NYTimes) are beginning to speak out. —Eds

January 23, 2010 [print_link]

OP-ED COLUMNIST

They Still Don’t Get It

By BOB HERBERT

pelosi-hmed-3p.h2How loud do the alarms have to get? There is an economic emergency in the country with millions upon millions of Americans riddled with fear and anxiety as they struggle with long-term joblessness, home foreclosures, personal bankruptcies and dwindling opportunities for themselves and their children.

The door is being slammed on the American dream and the politicians, including the president and his Democratic allies on Capitol Hill, seem not just helpless to deal with the crisis, but completely out of touch with the hardships that have fallen on so many.

While the nation was suffering through the worst economy since the Depression, the Democrats wasted a year squabbling like unruly toddlers over health insurance legislation. No one in his or her right mind could have believed that a workable, efficient, cost-effective system could come out of the monstrously ugly plan that finally emerged from the Senate after long months of shady alliances, disgraceful back-room deals, outlandish payoffs and abject capitulation to the insurance companies and giant pharmaceutical outfits.

The public interest? Forget about it.

With the power elite consumed with its incessant, discordant fiddling over health care, the economic plight of ordinary Americans, from the middle class to the very poor, got pathetically short shrift. And there is no evidence, even now, that leaders of either party fully grasp the depth of the crisis, which began long before the official start of the Great Recession in December 2007.

A new study from the Brookings Institution tells us that the largest and fastest-growing population of poor people in the U.S. is in the suburbs. You don’t hear about this from the politicians who are always so anxious to tell you, in between fund-raisers and photo-ops, what a great job they’re doing. From 2000 to 2008, the number of poor people in the U.S. grew by 5.2 million, reaching nearly 40 million. That represented an increase of 15.4 percent in the poor population, which was more than twice the increase in the population as a whole during that period.

The study does not include data from 2009, when so many millions of families were just hammered by the recession. So the reality is worse than the Brookings figures would indicate.

Job losses, stagnant or reduced wages over the past decade, and the loss of home equity when the housing bubble burst have combined to take a horrendous toll on families who thought they had done all the right things and were living the dream. A great deal of that bleeding is in the suburbs. The study, compiled by the Brookings Metropolitan Policy Program, said, “Suburbs gained more than 2.5 million poor individuals, accounting for almost half of the total increase in the nation’s poor population since 2000.”

Democrats in search of clues as to why voters are unhappy may want to take a look at the report. In 2008, a startling 91.6 million people — more than 30 percent of the entire U.S. population — fell below 200 percent of the federal poverty line, which is a meager $21,834 for a family of four.

The question for Democrats is whether there is anything that will wake them up to their obligation to extend a powerful hand to ordinary Americans and help them take the government, including the Supreme Court, back from the big banks, the giant corporations and the myriad other predatory interests that put the value of a dollar high above the value of human beings.

The Democrats still hold the presidency and large majorities in both houses of Congress. The idea that they are not spending every waking hour trying to fix the broken economic system and put suffering Americans back to work is beyond pathetic. Deficit reduction is now the mantra in Washington, which means that new large-scale investments in infrastructure and other measures to ease the employment crisis and jump-start the most promising industries of the 21st century are highly unlikely.

What we’ll get instead is rhetoric. It’s cheap, so we can expect a lot of it.

Those at the bottom of the economic heap seem all but doomed in this environment. The Center for Labor Market Studies at Northeastern University in Boston put the matter in stark perspective after analyzing the employment challenges facing young people in Chicago: “Labor market conditions for 16-19 and 20-24-year-olds in the city of Chicago in 2009 are the equivalent of a Great Depression-era, especially for young black men.”

The Republican Party has abandoned any serious approach to the nation’s biggest problems, economic or otherwise. It may be resurgent, but it’s not a serious party. That leaves only the Democrats, a party that once championed working people and the poor, but has long since lost its way.

BOB HERBERT is the New York Times’s senior resident liberal.
Did you like this? Share it:
 Posted by at 4:17 pm
Jan 252010
 
obama-Official_portrait_of_Barack_Obama

January 24, 2010

In an economy where 72 percent of all financial activity involves consumers buying stuff, it is impossible to imagine where any growth or recovery could come from when the American people are being so battered financially.

By Dave Lindorff  [print_link]

obama-Official_portrait_of_Barack_ObamaThe Democratic Party’s embarrassing electoral disaster in Massachusetts, losing a seat held for 46 years by the late Sen. Ted Kennedy, provided a clear warning that the party, and President Obama’s presidency, are headed for an epic trouncing this November, when all members of the House and a third of the Senate face re-election.

But all the frantic strategizing within the sclerotic Democratic Party leadership ignores the bigger crisis yet to come for this party that once brought the nation Social Security, unemployment compensation, public jobs programs and Medicare. That crisis is the economy, which is now showing signs of falling off a second cliff instead of beginning to recover.

Thanks to the abject failure of President Obama to boldly order up a massive jobs program and a full-blown economic stimulus program of public investment at the beginning of his term last spring, and to his failure to attack the entrenched banking interests by smashing apart the meg-investment banks that had turned banking into a casino game, the economy has been left to stagnate for a year.

Unemployment has continued to rise, with the latest reports showing that layoffs have begun to re-accelerate. Unemployment rose in 43 states, including some of the biggest, in December and fell in only four. And we are only seeing the beginning of this new drive into the ditch. The most ominous, and totally predictable, trend is layoffs by the public sector–by towns, counties, states, and public bodies such as public universities, school districts, public hospitals and transit companies. These layoffs which could ultimately number in the millions and which will have a knock-on effect on all kinds of other jobs, were deferred because of aid provided last year by the federal government, but no more federal aid is likely to be forthcoming and the money already provided runs out this summer. Look for official unemployment this year to move past the 11 percent record set in 1982. Meanwhile, real unemployment, which includes people who have given up looking for work, and those who have managed to get part-time work, is approaching 20%, and could eventually top 25%–a rate reminiscent of the Great Depression.

At the same time, the foreclosure crisis, and the related decline in home values which has put one-fourth of all homes “underwater,” meaning they’re worth less than the mortgage balance, continues unabated.Time Magazine, in its first issue of the new year, predicts that at least as many homes will go into foreclosure in 2010 as in the record year just ended–over 3 million houses. Equally bad, the magazine says that many housing experts are predicting that property values, which have lost an average of 30% since 2006, will continue to declineuntil into 2013!Already, American homeowners have lost over $7 trillion in wealth because of property value declines, and they will continue to lose more.

In an economy where 72 percent of all financial activity involves consumers buying stuff, it is impossible to imagine where any growth or recovery could come from when the American people are being so battered financially.

For almost a year, the government has hidden this disaster behind a rising stock market, which rose in seeming contradiction to all the bad news, as companies slashed costs to eke out profits from drastically reduced revenues. Many analysts say that this bizarre behavior of the equities markets was the likely result of behind-the-scenes government intervention in markets. Consider this: for the whole period between March 9, 2009, when the market began its rebound, and the present, a period during which the equities markets recovered roughly 60% of the ground they’d lost in the last crash, corporations were net sellers of their stock, and retail investors were basically out of the market. Foreign investors entered the market, but not in any huge way. Hedge funds, too, normally big players, were experiencing outflows of investor cash during most of the period, making it unlikely that they were investing either. Even pension funds, which were badly burned in the crash, were cautious investors over the past year. So who’s left? Suspicion falls on the Federal Reserve and the Treasury Department. This might explain why stocks have continued to rise on very low trading volume, and also why most of the upside has come, especially since last September, in after-hours trading in S&P futures, not in direct buying of shares during regular trading hours. If true, what this means is that the federal government has been doing what it fines hedge funds and investment banks for doing: manipulating the markets.

While the Fed and Treasury can theoretically manipulate the stock market, they cannot do this forever, and this past week, we have seen indications that the bull run in the market, whatever caused it, may have run out of steam.

If the economy does take a second plunge similar to what happened in late 2008 and 2009, Obama and the Democrats will have to accept the full blame. They had the opportunity last year to strike hard at the root causes of economic decline and at the sinister, greedy and corrupt activities of Wall Streets banks and investment banks. Because they chose instead to try and paper over the problem and accomodate those banks–even helping them to become bigger and more powerful– they will deserve the electoral drubbing that is coming.

It would be a huge and historic mistake for Democrats to listen to the advice of people like White House Chief of Staff Rahm Emanuel, who are claiming that the loss of the Massachusetts Senate seat to a Republican means it is necessary for the party to hew even further to the right. Yes, Massachusetts voters were voting for a guy who said he would kill the health bill in Congress, but polls suggest that his winning margin came from 7% of self-described liberal Democrats who told exit pollsters that the health bill was terrible and they wanted it killed. That seven percent is a huge number, when you consider how hard it would be for most Democrats to vote for a hard-line conservative candidate–someone who openly advocates waterboarding of terrorist suspects, and who is adamantly anti-abortion rights.

What really turned the trick for the GOP candidate, Scott Brown, though, was the economy. The rank-and-file working person (Republican or Democrat), both in Massachusetts and in the US at large, has seen enough over the past year to conclude that the Democrats in Congress and the Man-o-Change in the White House do not have their interests at heart. They clearly see that this government’s actions in support of the banks, the insurance companies, and the other giant industries in the US, from autos to utilities, are not being taken in the cause of bringing benefits to the people, but are simply being done for the benefit of those industries and their leaders and key investors. It’s not even “trickle down” anymore. It’s just catering to the rich and powerful–the people who make all those fat campaign contributions.

This is why Obama’s sudden “pivot” (people who have real values don’t “pivot”) to a tacky “populist” rhetoric about “fat-cat bankers” is falling on deaf ears. It’s why Democratic leadership calls for Congress to just pass the wretched Senate version of the health bill are being viewed with disgust by the public.

Everyone realizes it’s all just image-mongering. Nobody in power in Washington, Democrat or Republican, is there to help the little folks.

It’s all about making the rich richer.
___________________

DAVE LINDORFF is a Philadelphia-area journalist. His latest book is “The Case for Impeachment” (St. Martin’s Press, 2006). His work is available atwww.thiscantbehappening.net

 

 

Did you like this? Share it:
 Posted by at 4:09 pm
Jan 252010
 
lbjsignsmedicare

January 23, 2010

The ship is really sinking this time…

By Robert Parry [print_link]

From Consortium News

lbjsignsmedicare

Even tough LBJ didn't pull off his gloves against the Right.

This past week had the feel of “game, set, match,” the end to a long string of miscalculations by the American Left and a crowning victory for the cynical American Right a triple whammy of the U.S. Supreme Court ruling to unleash corporate campaign spending, Air America’s dissolution, and the Massachusetts Senate election.

Especially after the Supreme Court ruling allowing corporations to spend whatever they want to punish some politicans and reward others, it is hard to see a road back for American democracy.

The United States is now at the very dark terminus of a four-decades-long journey, one in which at nearly each fateful juncture the Right made the smart maneuver and the Left mostly hurt itself, most notably by allowing its divisive squabbles over purity vs. pragmatism to destroy the best opportunities for progress.

In retrospect, one can see key turning points as far back as 1968, the year when the Vietnam War and the assassinations of Martin Luther King Jr. and Robert F. Kennedy swallowed the optimism of a generation and divided the Democratic Party to such a degree that many progressives sat out the election, even though it meant that Richard Nixon would win and continue the war for four more years.

Only much later did evidence emerge revealing that Republican operatives had secretly sabotaged President Lyndon Johnson’s Vietnam peace talks, a move that prevented a Democratic reconciliation and enabled Nixon to narrowly snake away with the White House.

Though Johnson and his top advisers were aware of Nixon’s treachery in real time, they stayed silent for “the good of the country,” a decision that they may have viewed as noble and pragmatic but one which nonetheless had devastating future consequences. [See Consortiumnews.com's "The Significance of Nixon's Treason."]

So, by 1968, a troubling pattern was already taking shape. Many Democratic progressives refused to be practical regardless of what was at stake, and Democratic politicians shied away from tough showdowns with the Republicans and even joined in concealing evidence of their wrongdoing.

In 1972, emboldened by his still-secret success four years earlier, Nixon sought to ensure his reelection with another round of skullduggery spying on the Democrats and seeking to manipulate their nomination process but his luck finally ran out when a team of his burglars was caught inside the Democrats’ Watergate headquarters.

Despite Nixon’s best efforts aided and abetted by “pragmatic” Democratic National Chairman Robert Strauss who tried to help shut down the Watergate investigation the criminal proceedings exposed Nixon’s dirty operation, forcing his resignation in 1974 and leading to Democrat Jimmy Carter’s election in 1976. [For more on the Watergate intrigue, see Robert Parry's Secrecy & Privilege.]

From Nixon’s debacle, the Republicans learned important lessons, including their need to build a media infrastructure of their own to protect future Republican presidents from “another Watergate.” Nixon’s former Treasury Secretary Bill Simon took the lead in pulling together wealthy conservatives to invest in right-wing media and think tanks. [For details, see Lost History.]

The Left extracted an opposite lesson from Watergate. Feeling a false confidence that the mainstream news media would continue performing a watchdog role, progressives mostly dismantled what had been a thriving “underground” media of newspapers, magazines and radio stations, which had grown up amid the youthful opposition to the Vietnam War. [For details, see Consortiumnews.com's "The Left's Media Miscalculation."]

The Right’s Surge

By the late 1970s, other parts of today’s political dynamic were falling into place. The Right and the Republicans played hardball, while the Left and the Democrats remained deeply divided between purists and pragmatists — and were unwilling to confront GOP bullies.

In Election 1980, these political characteristics asserted themselves again. President Carter’s center-left Democratic policies offended farther-left Democrats, many of whom either sat out the November election or voted for independent candidate John Anderson.

Meanwhile, the Republicans played their usual aggressive game, this time over Carter’s Iranian hostage crisis. Ronald Reagan’s men went behind Carter’s back to contact Iranian officials much as Nixon’s team had gone behind Johnson’s back to sabotage the Vietnam peace talks in 1968. Indeed, some key figures, like Henry Kissinger, showed up in both operations.

(Similarly, too, even when evidence of Reagan’s treachery emerged years later, senior Democrats chose to conceal the evidence, just as Johnson and his advisers had done in 1968. [See Secrecy & Privilege for details.])

With Reagan’s victory in 1980, the emerging American political dynamics hardened. The Right kept pouring billions of dollars into a media infrastructure, which also included well-funded attack groups to go after mainstream journalists who wouldn’t toe Reagan’s propaganda line.

And, Reagan added a touch of “populism” to the Right’s messaging with his “government is the problem” mantra. This anti-government “populism” would remain central to the Right’s fortunes over the ensuing three decades, as wealthy corporations and rich individuals quietly funded groups that would rally average Americans against “big government,” a strategy that helped corporations maximize profits and consolidate their control of U.S. society.

Corporate titans understood that an energized and democratized federal government was the only meaningful force that could limit their power. So, they did what they could to hamstring and hobble the government, often under the false flag of “populism.”

In the 1980s, the American Left followed a different path, ignoring the importance of having a media infrastructure that can get out its message, instead favoring vague concepts like “organizing” and “going back to the roots.” The Left embraced the bumper-sticker slogan, “think globally, act locally,” and largely abandoned the front lines of Washington.

What money the Left did spend on national politics was devoted heavily to “campaign finance reform,” pushing for laws and regulations that supposedly would limit special-interest donations given to political parties and candidates. While well intentioned, the logical flaw of this approach was that it limited what could be spent by politicians on campaigns but ignored the Right’s unrestricted and unmatched investment in media.

In other words, while both Republican and Democratic candidates faced limits on what they could raise for their campaigns, the Right’s rapidly expanding right-wing media pounded liberal politicians 24/7/365 and, indeed, demonized liberalism itself. The Left largely ignored this imbalance.

Subject to these endless assaults, many Democratic politicians trimmed their sails and tacked toward the perceived safety of more conservative-sounding positions. But that only infuriated the Democratic purists more. They called on politicians to sail directly into the gathering storm.

The Tempest

In the 1980s, I found myself in the middle of this tempest since it also roared through mainstream journalism. On the Associated Press Special Assignment Team, I focused on Reagan’s bloody policies in Central America, leading me to discoveries about the secret activities of White House aide Oliver North and ultimately what became known as the Iran-Contra scandal.

Despite some success in exposing those secrets and getting a new job at Newsweek after the scandal erupted in late 1986 I learned painfully that the Right had made extraordinary progress in setting parameters for what mainstream journalists could report on, without risking their careers.

My efforts to explore the dark corners of the Iran-Contra affair, including cocaine trafficking by Reagan’s Nicaraguan Contra rebels and the origins of Reagan’s secret dealing with Iran, met with anger from Republicans and resistance from my Newsweek editors who had cozy relations with Henry Kissinger and other influential Republicans.

Those battles led me to leave Newsweek in 1990. Afterwards, I began contacting wealthy progressives with warnings about the dangerous changes occurring in Washington’s news media. But I often felt like Cassandra, foretelling disasters that no one wanted to recognize and confront.

Then, in 1992-93, a Democratic-led House investigation of Reagan’s 1980 contacts with Iran unearthed strong evidence of Republican criminality. But just like in 1968, senior Democrats in this case led by Rep. Lee Hamilton chose to look the other way. The Democrats even hid evidence, again presumably for “the good of the country.”

My discovery of some of those documents in late 1994 and early 1995 and my inability to interest several “liberal” news outlets in the story led to the creation of the Consortiumnews.com Web site as a means of getting such suppressed history to the American people.

But my appeals to wealthy liberals and progressives for support continued to fall on deaf ears. They didn’t see much value in backing independent media outlets like ours.

As for the ever-expanding right-wing media, which by the mid-1990s had spread from magazines, books and newspapers to talk radio, cable TV and the Internet, some progressives would just say, “turn it off.” But millions of Americans clearly were listening, watching — and adopting right-wing views.

The Gore Debacle

At the end the 1990s, the Left’s purist vs. pragmatist split resurfaced again. Many on the Left were furious with President Bill Clinton over his timidly liberal or pro-business policies that he had promoted in the face of the Right’s ferocious efforts to humiliate and impeach him.

To his surprise, Clinton also had found the mainstream press nearly as hostile to him as the right-wing news media was.

During Campaign 2000, that animus shifted to Al Gore, as the New York Times and Washington Post misrepresented Gore’s words and intentions almost as enthusiastically as did the Right’s New York Post and Washington Times. The news media’s “war on Gore” peddled apocryphal tales, like Gore’s supposed claim that he “invented the Internet,” and made Gore out to be a delusional braggart. [SeeNeck Deep.]

At the time, some leading progressives told me they were determined to “teach the Democrats a lesson” by supporting Green Party candidate Ralph Nader, who claimed to detect “not a dime’s worth of difference” between Democrat Al Gore and Republican George W. Bush.

The Nader backers brushed aside concerns about the kinds of Supreme Court justices that Bush might select as well as my warnings that Bush though selling himself as a “compassionate conservative” would restore neoconservatives to power over U.S. foreign policy.

Having dealt with the neocons during the Reagan-era bloodbaths in Central America, I was keenly aware of their skill at manipulating information. But Nader backers assured me that Bush would surround himself with “realists” from his father’s presidency, not Reagan-era neocons.

The Naderites’ ultimate dream was for Nader and the Greens to cross the five percent voting threshold, thus qualifying them for federal election funds, while still hoping that Gore would slip past Bush.

On Election Day, when I was standing in line to vote in Arlington, Virginia, two young Nader supporters were discussing exactly this scenario when a disgusted middle-aged woman turned on them and seethed, “You better hope Gore wins.” It was the old division between the purists and the pragmatists.

As it turned out, Nader fell short of the five percent threshold, but his vote total in the key state of Florida did leave that tally in a virtual dead heat between Bush and Gore.

We now know that if all legally cast votes in Florida had been counted, Gore would have won narrowly as he also did in the national popular vote but Bush clung to a 537-vote lead in the official Florida tally overseen by Gov. Jeb Bush’s allies, including Secretary of State Katherine Harris.

Turning Point

At that historic turning point, the Republicans benefited from having a powerful media apparatus which quickly defined the recount battle as Gore’s trying to “invent votes.” Meanwhile, the mainstream news media continued tilting toward Bush under the notion that his ascension to the White House would “put the adults back in charge” after eight turbulent years of Clinton.

On the Left, there was almost no media to fight back against Bush’s brazen tactics and no timely protests to match what the Right was able to generate overnight through its national media. I also continued to encounter disinterest among some on the Left who still insisted that it really didn’t matter whether Gore or Bush became President.

Amid this climate of an active Right and a disengaged Left, it became a relatively easy call for five Republican partisans on the U.S. Supreme Court to twist some legalistic arguments into an excuse to hand the White House to George W. Bush. [For details, see Neck Deep.]

Not only did the Supreme Court reverse the electoral judgment of the American people regarding who should be President, but the five Republicans guaranteed that any Court vacancies would be filled by a Republican President, not a Democrat.

After Bush prevailed, Nader and his followers refused to accept any blame for the outcome, claiming instead that it was Gore’s fault for not winning his home state of Tennessee, or having a lousy recount strategy, or any number of other excuses.

It had become a trademark of the Left’s purists to almost never take responsibility for anything, but rather to assume the role of critic. They would typically find fault with whatever compromise the pragmatists judged necessary while pretending that the American people were ready to rally to the banner of radical change if only the Democrats would blow the bugle.

The reality was that many middle- and working-class Americans were now identifying with the Right’s anti-government “populism” — as promoted by the pervasive right-wing media — not with the Left’s unheard explanations for why government intervention was needed to address social ills.

George W. Bush’s presidency also didn’t turn out the way that some Naderites had predicted. Bush shoved aside his father’s old foreign policy advisers and restored neocons, like Elliott Abrams and Paul Wolfowitz, to key jobs in the national security bureaucracy.

Despite his tainted election victory, Bush also veered the United States sharply to the Right, slashing taxes mostly for the rich, further reducing government regulations of industries, running up the national debt, and after the 9/11 attacks adopting the neocons’ theories of preemptive war, particularly targeting Iraq for regime change.

The Left Stirs

In 2003, as the death toll mounted from the invasion of Iraq, I began to hear echoes among a few progressives of my longstanding recommendations about the need to build media that could counter the lies and distortions that were emanating daily from the powerful right-wing news media.

Those discussions on the Left eventually gave rise to Air America, a 24-hour radio talk show network. But it barely got liftoff in 2004 because of a shortage of funding and constant wrangling among its cash-strapped management.

Still, for all its problems, Air America gave voice to many Americans who had felt adrift in a hostile sea of U.S. media, where right-wingers demonized liberals as traitors and where mainstream news personalities kept their careers flowing in a profitable direction by not offending Bush loyalists.

But Air America couldn’t afford the basics of advertising that are a must in the radio business. You didn’t see the faces of hosts Al Franken and Rachel Maddow plastered on the sides of buses or inside subway cars; Air America didn’t even put out regular press releases.

It was the same ol’ problem, underfunded media. Yet, instead of investing more money in building Air America and other media outlets, the Left focused instead on government regulation as the answer to the media problem.

A common refrain was to restore the Fairness Doctrine in radio, as if the Republicans would allow that — and even if they did — as if some bureaucrats appointed by President Bush would demand “balance” from Rush Limbaugh and Sean Hannity.

Despite opportunities presented by developments such as the Internet and digital cable, media remained near the bottom of the Left’s priorities. Extreme religious groups did more to get their message out than did progressives, although they amounted to one-third or so of the American public.

The Naderite view from 2000 that it didn’t matter whether Gore or Bush was President also came back to haunt the American Left when Bush named two right-wingers, John Roberts and Samuel Alito, to fill vacancies on the U.S. Supreme Court.

Though Roberts replaced fellow right-winger, the late William Rehnquist, Alito’s appointment threatened to tilt the court further rightward because he took the seat of the somewhat more moderate Sandra Day O’Connor, who retired.

In early 2006, Alito’s nomination faced strong Democratic opposition in the Senate, where there were 42 votes lined up against his nomination, enough to sustain a filibuster that could have stopped him.

However, a group of “centrist” or pragmatic Democrats came up with a “bipartisan” solution that cleared the way for Alito’s confirmation. To sidestep a Republican threat to eliminate filibusters, the so-called “nuclear option,” these Democrats joined Republicans to vote cloture against liberal Democrats who were fighting Alito. Some of those pro-cloture Democrats then voted against Alito’s confirmation, which nevertheless prevailed on a 58-42 vote.

This sellout infuriated the Democratic “base,” which warned of future dangers from putting another radical right-winger on the U.S. Supreme Court.

This Past Week

Over the past year and especially this past week the various tendencies of the American Right and the American Left have converged like the final scene of a dreadful Broadway musical as all the characters crowd onstage.

In its first year in office, the Obama administration has often shown some of the worst characteristics of the pragmatic Democrats, making endless compromises and shying away from tough confrontations, hoping against hope that the phantom of bipartisanship will materialize.

The purist Left, too, has continued with its own sense of unreality as it demands that politicians walk the plank on behalf of progressive government policies despite a lack of public support and in the face of vicious attacks from the right-wing media.

The Right has again demonstrated its ability to whip up rank-and-file Americans to take positions against their own interests. The Tea Partiers, whose organizations sometimes get behind-the-scenes funding from corporate interests, rail against Big Government, apparently not realizing that their “populist” positions are serving the interests of corporate power.

The Republicans also have shown no shame in deploying the filibuster relentlessly, even though they threatened to eliminate it when some Democrats tried to use it. Republicans see no risk in obstructionism, knowing that their flanks are covered by the right-wing news media.

These troubling threads of U.S. political life knotted themselves together this past week.

It appears that some progressive purists sat out the Massachusetts Senate race in order to “send a message” to President Obama and the pragmatists, according to some e-mails I’ve received and some media reports. Meanwhile, the Right and its media operatives whipped-up a “populist” fury that lifted right-wing Republican Scott Brown into the late Ted Kennedy’s Senate seat, giving the GOP the 41 votes it needs to sustain its filibuster strategy.

Not surprisingly, many congressional Democrats took the message from the Massachusetts election not as some on the Left had hoped — as a call to arms to fight for more liberal solutions — but rather as a threat to their political survival and thus another reason to crawl toward the “center.”

Senate Majority Leader Harry Reid interpreted Brown’s victory as the voters telling Congress to work together. But the Republicans have made clear that they have no intention of making any meaningful compromises with the Democrats. Why should they?

After all, the Republicans and their right-wing allies have shown that a mix of congressional obstruction and media propaganda will likely assure them a major victory in November’s elections.

The Right’s confidence got another major boost on Jan. 21 when five Republican justices including the two appointed by Bush wiped out years of the Left’s investment in campaign-finance reform.

The five justices Antonin Scalia, Clarence Thomas, Anthony Kennedy, Roberts and Alito seized an opening presented by a relatively minor case of a documentary trashing Hillary Clinton and issued a sweeping ruling that will permit corporations and other special interests to spend unlimited funds to influence the outcome of elections.

Floodgates Open

Combined with the Right’s massive investment in media, the Court’s decision means a flood of right-wing corporate money inundating the electoral system, intimidating political enemies and rewarding political friends.

Ironically, Ralph Nader, whose candidacy helped make the Roberts and Alito appointments possible, stepped forward to denounce the ruling, saying it “shreds the fabric of our already weakened democracy by allowing corporations to more completely dominate our corrupted electoral process.”

Nader’s solution was to propose a constitutional amendment that would “prevent corporate campaign contributions from commercializing our elections and drowning out the civic and political voices and values of citizens and voters.” However, Nader presented no practical way for such a constitutional amendment to be enacted.

Another irony of the expanding power of corporate money is that it will surely be disguised in “populist” garments meant to deceive simpleminded Americans who will think they are joining a movement to free the Republic from the threat of Big Government, when they will actually be handing the Republic over to corporate titans, including some fronting for foreign money.

And to top off this past week, Air America after many stop-and-go moments finally came crashing to earth, declaring bankruptcy and closing up shop.

Its demise was interpreted by some liberal pundits as a sign that progressives shouldn’t bother to invest in talk radio because progressives supposedly are too nuanced in their viewpoints, while talk radio is all about simplistic bombast.

But the real reason for Air America’s failure may be simply that its managers and hosts were always flying by the seats of their pants. The low-budget operation was held together by glue and Scotch tape, as wealthy progressives never committed the kind of resources that were needed.

Now, the main source of left-of-center opinion is from MSNBC’s evening lineup of Ed Schultz, Keith Olbermann and Rachel Maddow. But that’s a fragile reed for progressives to put much weight on. It’s not like what the Right has with its own deeply committed outlets, such as Fox News and hard-right radio hosts.

MSNBC, which is owned by General Electric but may soon be taken over by Comcast, experimented with the three liberal hosts only after all other alternatives failed. For a while during the Bush administration, MSNBC tried to out-fox Fox with even more flag-waving jingoism but found that right-wing viewers were loyal to the network that had served them so well.

MSNBC also is not simply a liberal bastion. It offers Republican hosts, like former Congressman Joe Scarborough, and its sister network CNBC is filled with pro-Reagan free-marketeers, like Larry Kudlow and Rick Sentelli.

So, it’s hard to look at the political landscape of this past year and especially this past week and see any route left toward a saner America where a democracy based on a well-informed electorate can expect to flourish.

President Obama may begin striking a more populist tone, but it may be too little, too late. Even if he’s sincere, he’s sure to be bombarded with corporate-funded 30-second ads mocking him and his policies.

If there is any hope for finding some long road back, it may have to begin with the American Left taking a serious look at itself and discovering ways to finally blend principle with practicality.

Author’s Website: http://www.consortiumnews.com

Author’s Bio: Robert Parry broke many of the Iran-Contra stories in the 1980s for the Associated Press and Newsweek. His latest book, Secrecy & Privilege: Rise of the Bush Dynasty from Watergate to Iraq, can be ordered at secrecyandprivilege.com. It’s also available at Amazon.com, as is his 1999 book, Lost History: Contras, Cocaine, the Press & ‘Project Truth.’

Did you like this? Share it:
 Posted by at 3:44 pm
Jan 252010
 
haiti.destruction

January 25, 2010

By Robert Jensen

haiti.destructionCNN’s star anchor Anderson Cooper narrates a chaotic street scene in Port-au-Prince. A boy is struck in the head by a rock thrown by a looter from a roof. Cooper helps him to the side of the road, and then realizes the boy is disoriented and unable to get away. Laying down his digital camera (but still being filmed by another CNN camera), Cooper picks up the boy and lifts him over a barricade to safety, we hope.

“We don’t know what happened to that little boy,” Cooper says in his report. “All we know now is, there’s blood in the streets.” (To view the CNN story, go to http://www.youtube.com/watch?v=7Unh4v1lFU0.)

This is great television, but it’s not great journalism. In fact, it’s irresponsible journalism.

Cooper goes on to point out there is no widespread looting in the city and that the violence in the scene that viewers have just witnessed appears to be idiosyncratic. The obvious question: If it’s not representative of what’s happening, why did CNN put it on the air? Given that Haitians generally have been organizing themselves into neighborhood committees to take care of each other in the absence a functioning central government, isn’t that violent scene an isolated incident that distorts the larger reality?

Cooper tries to rescue the piece by pointing out that while such violence is not common, if it were to become common, well, that would be bad — “it is a fear of what might come.” But people are more likely to remember the dramatic images than his fumbling attempt to put the images in context.

cnn-Cooper-haitiUnfortunately, CNN and Cooper’s combination of great TV and bad journalism are not idiosyncratic; television news routinely falls into the trap of emphasizing visually compelling and dramatic stories at the expense of important information that is crucial but more complex.

The absence of crucial historical and political context describes the print coverage as well; the facts, analysis, and opinion that U.S. citizens need to understand these events are rarely provided. For example, in the past week we’ve heard journalists repeat endlessly the observation that Haiti is the poorest country in the Western Hemisphere. Did it ever occur to editors to assign reporters to ask why?

The immediate suffering in Haiti is the result of a natural disaster, but that suffering is compounded by political disasters of the past two centuries, and considerable responsibility for those disasters lies not only with Haitian elites but also with U.S. policymakers.

Journalists have noted that a slave revolt led to the founding of an independent Haiti in 1804 and have made passing reference to how France’s subsequent demand for “reparations” (to compensate the French for their lost property, the slaves) crippled Haiti economically for more than a century. Some journalists have even pointed out that while it was a slave society, the United States backed France in that cruel policy and didn’t recognize Haitian independence until the Civil War. Occasional references also have been made to the 1915 U.S. invasion under the “liberal” Woodrow Wilson and an occupation that lasted until 1934, and to the support the U.S. government gave to the two brutal Duvalier dictatorships (the infamous “Papa Doc” and “Baby Doc”) that ravaged the country from 1957-86. But there’s little discussion of how the problems of contemporary Haiti can be traced to those policies.

Even more glaring is the absence of discussion of more recent Haiti-U.S. relations, especially U.S. support for the two coups (1991 and 2004) against a democratically elected president. Jean-Bertrand Aristide won a stunning victory in 1990 by articulating the aspirations of Haiti’s poorest citizens, and his populist economic program irritated both Haitian elites and U.S. policy-makers. The first Bush administration nominally condemned the 1991 military coup but gave tacit support to the generals. President Clinton eventually helped Artistide return to power Haiti in 1994, but not until the Haitian leader had been forced to capitulate to business-friendly economic policies demanded by the United States. When Aristide won another election in 2000 and continued to advocate for ordinary Haitians, the second Bush administration blocked crucial loans to his government and supported the violent reactionary forces attacking Aristide’s party. The sad conclusion to that policy came in 2004, when the U.S. military effectively kidnapped Aristide and flew him out of the country. Aristide today lives in South Africa, blocked by the United States from returning to his country, where he still has many supporters and could help with relief efforts.

How many people watching Cooper’s mass-mediated heroism on CNN know that U.S. policy makers have actively undermined Haitian democracy and opposed that country’s most successful grassroots political movement? During the first days of coverage of the earthquake, it’s understandable that news organizations focused on the immediate crisis. But more than a week later, what excuse do journalists have?

Shouldn’t TV pundits demand that the United States accept responsibility for our contribution to this state of affairs? As politicians express concern about Haitian poverty and bemoan the lack of a competent Haitian government to mobilize during the disaster, shouldn’t journalists ask why they have not supported the Haitian people in the past? When Bill Clinton and George W. Bush are appointed to head up the humanitarian effort, should not journalists ask the obvious, if impolite, questions about those former presidents’ contributions to Haitian suffering?

When mainstream journalists dare to mention this political history, they tend to scrub clean the uglier aspects of U.S. policy, absolving U.S. policymakers of responsibility in “the star-crossed relationship” between the two nations, as a Washington Post reporter put it. When news reporters explain away Haiti’s problems as a result of some kind of intrinsic “political dysfunction,” as the Post reporter termed it, then readers are more likely to accept the overtly reactionary arguments of op/ed writers who blame Haiti’s problems of its “poverty culture” (Jonah Goldberg, Los Angeles Times) or “progress-resistant cultural influences” rooted in voodoo (David Brooks, New York Times).

One can learn more by monitoring the independent media in the United States (“Democracy Now,” for example, has done extensive reporting, http://www.democracynow.org/) or reading the foreign press (such as this political analysis by Peter Hallward in the British daily “The Guardian,”http://www.guardian.co.uk/commentisfree/2010/jan/13/our-role-in-haitis-plight). When will journalists in the U.S. corporate commercial media provide the same kind of honest accounting?

The news media, of course, have a right to make their own choices about what to cover. But we citizens have a right to expect more.

Author’s Bio: Robert Jensen is a journalism professor at the University of Texas at Austin and board member of the Third Coast Activist Resource Center. His latest book, All My Bones Shake: Seeking a Progressive Path to the Prophetic Voice, was published in 2009 by Soft Skull Press. He also is the author of Getting Off: Pornography and the End of Masculinity (South End Press, 2007); The Heart of Whiteness: Confronting Race, Racism and White Privilege (City Lights, 2005); Citizens of the Empire: The Struggle to Claim Our Humanity (City Lights, 2004); and Writing Dissent: Taking Radical Ideas from the Margins to the Mainstream (Peter Lang, 2002). Jensen’s articles can be found online at http://uts.cc.utexas.edu/~rjensen/index.html.

Did you like this? Share it:
 Posted by at 3:25 pm