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Month: December 2011

Liberalism = freedom plus groceries

Freedom plus groceries

by digby

Greg Sargent breaks down the new Pew Poll, which apparently shows that a majority of Americans are more than willing to throw down in the class war. It’s quite inspiring when you think about it. Seems that no matter how hard the 1% tried it can’t quite convince the people that they should put their own needs behind those of the millionaire “jaaahb creators.”

But as Greg point out, this is not guarantee that the new populist rhetoric from the president or the congressional Democrats will trump the bad economy. After all, as Rick Perlstein noted in this article from a while back, modern liberalism, properly understood, is “freedom, plus groceries”:

This beast we call “liberalism”—in its genus Americanus, at least—is a notoriously complicated animal. Its philosophy is rooted in the notion of human beings as autonomous agents. With the realization that formal autonomy meant little without the means to sustain a decent life, its practical definition in this century came to encompass the various kinds of government arrangements democratically devised to share the social burden. What we now mean by the word was summarized with unmatched elegance by Maury Maverick, the Texas congressman who led a caucus in the 1930s that tried to push the New Deal to the left. He called liberalism “freedom plus groceries.” As a definition, it cannot be improved upon—although scholars may prefer John Rawls’s formulation, that for justice to thrive the minimum worth of liberty must be maximized.

The groceries part, the different ways in which liberals devised to vouchsafe enough material resources for everyone (whatever the divergent conceptions of “enough”), makes for a complex history. I won’t get into the technicalities except to note the existence of the commitment as one of liberalism’s constants and to observe that such a commitment almost invariably requires a political imagination geared toward the long term.

Needless to say, the freedom part is literally compromised by decisions to legalize indefinite detention without trial, but for the purposes of this discussion, it’s the groceries that are causing the problem — or rather lack thereof. The Democrats are simply not responding to the immediate concerns of a majority of Americans. Even health care, which is a great anxiety producing issue, is still fraught with confusion (although its early benefits are beginning to register a bit.) The more immediate issues of a foreclosure fraud crisis and all the problems associated with it, unemployment and job insecurity and massive numbers falling into poverty while the wealthy pig out (and whine about it) is what has people up in arms. They need government to deliver some groceries and the government is instead putting them on a diet. Conservatives don’t believe in delivering groceries, of course. When they aren’t stealing the milk money and handing it out to their rich friends to pay back their donations, they’re indifferent at best. It’s liberals who are supposed to deliver at times like this and instead of doing that they are cutting deals to shrink the existing, tattered safety net in the future in order to keep the economy from sinking further in the present. (It’s not all their fault, but being ineffectual doesn’t rally the troops.) The populist rhetoric is welcome, of course. At least it’s beginning to reframe the argument away from the destructive notion that government deficits caused the economic crisis.(Unfortunately, there’s still a lot of work to do on that.) But it’s going to be very tough if Democrats keep compromising on the groceries.We still don’t know what deal, if any, is going to emerge on the budget. The Democrats have evidently given up entirely on the millionaire surtax, which I indicated earlier isn’t all that surprising. The question now is whether the Republicans will be able to coerce them into accepting their odious cuts to pay for the payroll tax cut and unemployment extensions. That’s not delivering groceries, it’s eating your seed corn.

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Policy by ego: Ron Wyden’s political malpractice

Policy by ego

by digby

Many of the big supporters of the Health Care reform have said that the idea was to eventually apply apply its logic to Medicare. That is, that Medicare would eventually be a subsidy system with “choice” among private insurers and perhaps a public option (as long as the industry says it’s ok.) I don’t know that people understood that to be the eventual goal of the health care reforms, but evidently that was understood by many of those who were most enthusiastic about it.( In fact, a lot of people understood the opposite — that the health care reforms would eventually lead to single-payer.)

Last night Democratic Senator Ron Wyden took a step toward making that “dream” a reality. He and Paul Ryan announced that they have teamed up to promote a plan to make Medicare a voucher plan by 2022, (just as the second half of the baby boom enters the system.) One might have thought the prudent thing would be to wait and see how the health care reforms work before throwing the sickest population into the mix, but apparently we just “know” it’s the way to go.
That’s not to say that people won’t be able to buy what we know as Medicare with their “supported premium”, but because the spending will be capped for all, and almost assuredly subject to political exigencies, this is very likely to result in, at the very least, a more difficult system to navigate for the most ill and vulnerable adult citizens. My anecdotal observation of the elderly in the past few years is that they can’t competently pay their phone bills, so this should be interesting. I suppose some kindly insurance salesmen will come to the rescue.
The good news on the political front is that this will help poor Paul Ryan out in what had been up until now a tough reelection campaign. Wyden has given him a way to soften his hardcore partisan image and present himself as a reasonable moderate in a split district. Nice of him. But you can understand why. Wyden sees himself as a health care guru but his plan for employee vouchers got muscled out in the ugly reform debate and so he’s taking another stab at glory here. The fact that he’s helping a Randian ideologue smooth out his image so that his career as chief destroyer of the welfare state can continue is just collateral damage.
Here’s the thing. This is a lousy idea — for many reasons, both substantively and politically. But don’t listen to me. Here’s Igor Volsky on the Wyden-Ryan plan:

[H]ere, in a nutshell, is the problem: In an interview with the Washington Post, “Ryan and Wyden acknowledged that their plan might not bring in more savings than under the current law.” Yet they’re willing to set the nation on an untested path of private competition that breaks up the large market clout of Medicare (which is now experimenting with more efficient ways to pay providers) and pushes seniors into less efficient private plans. It moves the health care system closer to the Ryan ideal in which future Congresses would be able to reduce federal costs by eating away at the premium credit seniors receive. Over time, Medicare will start bleeding beneficiaries, becoming an ever smaller program.

Or listen to one of the original proponents of “premium support” Henry Aaron, from a few months back:

… I now believe that even with the protections we set forth, vouchers have serious shortcomings. Only systemic health care reform holds out real promise of slowing the growth of Medicare spending.

Predicted savings from vouchers or premium support are speculative. Cost shifting to the elderly, disabled, and poor and to states is not.

Medicare’s size confers power, so far largely untapped, that no private plan can match to promote the systemic change that can improve quality and reduce cost. The advantages of choice in health care relate less to choice of insurance plan than to choice of provider, which traditional Medicare now provides and which many private plans restrict as a management tool.

Finally, the success of premium support depends on sustained and rigorous regulation of plan offerings and marketing that the current Congress shows no disposition to establish and maintain.

(Today, he’s being non-committal.*)

Can anyone doubt that the current political stand-off is incapable of establishing and maintaining the kind of “sustained and rigorous regulation” that this would require? My God, we cannot even pass a yearly budget without the wingnut wrecking crew demanding a pile of human sacrifices and the Democrats weakly retorting with “we’re open to all ideas.”

Ezra Klein sets this up as a crafty conundrumn in which the conservatives have to sign on to a “public option” choice — previously known as Medicare — while the liberals have to explain why they love all this choice for those under 65 but not for the elderly. (Those of us who would prefer something closer to traditional Medicare-for-all are simply irrelevant.) He says the outcome will be determined by whether or not Ron Wyden is closer to “the middle” than Paul Ryan.

That’s easy. Since the Republicans are remarkably disciplined and nearly 100% conservative, policy is dictated by the most conservative Democrat. And the most conservative Democrats are far closer ideologically to Ryan than Wyden. Wyden will end up being a useful idiot for the eventual destruction of Medicare. After all, “even the liberal Ron Wyden” now believes that Medicare should be privatized.

Jonathan Cohn rejects this plan on the merits, agreeing that there is simply no reason to believe that this mechanism will actually save money, and also adds a realistic political perspective:

… Wyden is embracing premium support and, in the process, lending respectability to Ryan and the House Republicans. Ryan although distancing himself from his former proposal, still isn’t coming to terms with the Affordable Care Act. That’s been the story for a while now: Democrats are more willing to compromise than Republicans. Until that changes, Democrats make concessions at their own peril and with great risk for their constituents.

Wyden has first-hand experience with Republican intransigence. When he introduced his universal coverage plan in late 2006, the political environment was different. Bipartisanship seemed possible. The Republican opposition was less extreme. But that was before Obama’s election and the decision, by leading Republicans, to make defeating him their top priority. Poor Bob Bennett paid the price: Conservatives in Utah, unable to get past his cooperation with Wyden, denied him the chance to seek reelection. Now he’s out of Congress.

Wyden obviously believes it remains possible to reach across the aisle – and that this plan, at this time, can begin a constructive discussion between the parties of how to shore up Medicare. I just don’t see it.

This could be the worst political time in history to propose something like this. That Wyden has opened the door for it — and re-empowered an extremist like Paul Ryan, a man who characterizes progressivism as a “cancer” — is political malpractice of the highest order. (Not to mention that he’s actually validating Mitt Romney as well.) But I’m sure he’ll get a lot of attention for his “bipartisan” bravery and that’s a very valuable currency in Village circles.

Ryan, meanwhile, is chuckling at having his tattered reputation restored by a Democrat, just in time to rescue him from what was going to be a tough election. It’s so much sweeter that way.

Update:

GINGRICH: We have today a very important breakthrough in that there is a Wyden/Ryan Medicare reform bill. It represents Senator Wyden, the Democrat from Oregon, Congressman Paul Ryan from Wisconsin. It is a bipartisan effort to really come to grips with one of the major entitlement challenges we face and to have that bill introduced and have them publicly together talking about this is really a healthy, maybe it’s the beginning of breaking up the log jam and starting to get Democrats and Republicans to talk with each other. And I think that Paul Ryan and Ron Wyden deserve some of the credit. I mean this is a very courageous thing for each of them to do. To reach out, come together and offer a genuinely bipartisan bill, given the atmosphere you have in Washington.

Music to a Villagers’ ears.

*wrong Aaron. Please excuse the error.

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.

Getting ahead: or, to put it another way, falling behind

Getting ahead

by digby

Nothing to see here folks:

Squeezed by rising living costs, a record number of Americans — nearly 1 in 2 — have fallen into poverty or are scraping by on earnings that classify them as low income.

The latest census data depict a middle class that’s shrinking as unemployment stays high and the government’s safety net frays. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families.

“Safety net programs such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too `rich’ to qualify,” said Sheldon Danziger, a University of Michigan public policy professor who specializes in poverty.

“The reality is that prospects for the poor and the near poor are dismal,” he said. “If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years.”

So let’s have some more austerity! It’ll be a bracing wake up call that these people just need to develop the work ethic of a CEO or a banker. After all, they wouldn’t be rich if they didn’twork harder than everyone else.

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Demanding sacrifices on the altar of compromise by @DavidOAtkins

Demanding sacrifices on the altar of compromise

by David Atkins

The traditional media’s day wouldn’t be complete without another story about those horrible, nasty politicians and their awful insistence on being partisan jerks, and oh, how bad both sides are for not being more reasonable and compromising to do the business of the nation. Democrats and Republicans, tsk tsk. Always the same, bless their hearts, like little children too immature for the No Labels adults. The New York Times is happy to deliver the typical pearl clutching outrage:

Their poll numbers sinking, their constituents badly bruised by economic hardship and with millions of American workers about to get a sudden and unexpected tax increase, what are members of Congress discussing? Shutting down the government. Again.

For the third time in a year, the divided 112th Congress is dancing on the edge of catastrophe, locked in a bitter partisan battle over fiscal measures, with unrelated policy debates clinging to the side.

All right, so what’s the problem?

Republicans and Democrats do not agree on how to pay for something that both sides claim to want — extension of a payroll tax holiday for almost every worker — and have until the end of the year to work it out or see the tax go up, something that most economists say would further damage the nation’s fragile economic health by taking money out of consumers’ pockets.

Wait a minute here. There’s an argument over how to pay for a tax cut? I thought Republican orthodoxy said tax cuts paid for themselves. Where was this debate over making the Bush tax cuts pay for themselves? Where was the insistence on making the the elimination of the Paris Hilton tax pay for itself? Why are we even having this debate at all? Both sides want a tax cut for the middle class. Shouldn’t Republicans be gleeful that Democrats have hopped aboard the tax cut train?

Well, no. First, the Times has another smarmy reproach for politicians on both sides:

Now, with Congress entering a winter of discontent, each side expressed outrage — much of it manufactured — on Wednesday and blamed the other side for the potential debacle looming at the end of the week.

Yeah, we get it. Horrible partisanship, blah blah blah. So what are the actual details of battle lines that the Times has helpfully buried toward the bottom of the article below their both-sides-do-it anti-partisan harangue?

After meeting privately with President Obama on Wednesday, Senate Democrats began to cobble together a new deal to extend the payroll tax without using a surcharge on incomes over $1 million, something Republicans detest. They hope the new measure will have legs in both chambers, but Mr. Obama’s press office said Wednesday that the president would like Congress to pass a short-term financing measure, known as a continuing resolution, for now.

Slow down a second. Democrats initially insisted on paying for the payroll tax cut extension with a surcharge on millionaires, but gave it up because they knew Republicans wouldn’t go along with it–even though every poll shows strong support among an overwhelming supermajority of Americans for raising taxes on the super rich to pay for popular programs. And in this case, not even a popular program, but a tax cut. Democrats gave that up, and are hoping to pass the popular middle-class tax cut extensions with a continuing resolution. In other words, Democrats wanted to do something popular, and pay for it by doing something even more popular. When Republicans denied them the opportunity to do the super-popular thing, they settled for just the popular thing–the tax cut that Republicans refuse to pass on its own. That sounds pretty much like compromise to me. So what is the Republican plan passed by the House?

Mr. Reid wants to quickly vote the bill down because while it would extend a cut in Social Security payroll taxes for 160 million workers, it also eases the way for an oil pipeline opposed by environmental groups, blocks certain air pollution rules, freezes the pay of many federal employees through 2013, increases some Medicare premiums, and greatly reduces unemployment benefits and adds a host of new rules for receiving them.

Perfect. Republicans want to roll back air quality rules (deeply unpopular), build a tar sands pipeline (middlingly popular but apocalyptic for the climate), freeze the pay of federal employees through 2013 (popular but arbitrary, punitive, near useless for deficit reduction, and harmful during a recession), increase Medicare premiums (insanely unpopular), stiff unemployment benefits (unpopular, heartless and again stupid during a recession) and force the unemployed to jump through more hoops (degrading and pointless. Wait, no. Degrading the unemployed as subhuman is the whole point.)

This is the Republican offer. A bevy of ideas by turns unpopular, insane, counterproductive and harmful, each one worse than the last–and all offered as the price tag for a tax cut that Democrats would be happy to pass alone. The Democrats, meanwhile, half-heartedly demanded a popular and useful millionaire’s tax before caving nearly instantly when Republicans refused to play ball.

And for this, the New York Times pooh-poohs both sides for intransigence and bitter, petty partisanship. For this, even members of my own Democratic Central Committee roundly proclaim how tired voters are of the “extremist partisanship,” declare their interest in and support for No Labels, and insist that Democrats should learn to be more “moderate” and “compromising.”

Where, Gray Lady of the Times, should Democrats have given up more ground in order to avoid this situation? Which particular insane poison pills in the Republican House bill should Democrats vote for in order to avert a government shutdown?

What more proof would you have that Republicans don’t care if the government shuts down, because they hate government anyway, and because the economic tailspin caused by a shutdown would, in their calculations, sabotage the economy thereby hurting the President’s re-election chances? What would it take for you to finally tell your readers the truth: that Republicans, like the evil mother in the Judgment of Solomon, are willing to kill the baby to get what they want over and over again, while Democrats continue to play the role of the good mother, giving up everything they own to save it?

Except that in this story, we have no Solomon. We have a vile jurist sitting in judgment of both sides, slapping them equally across the face for daring to sully his courtroom with their divisive argumentation rather than reach a deal with one another through arbitration–even as the good mother’s own supposed friends and relatives would rather sell her and her baby down the river just to avoid hearing another nasty word of partisan argument.

Because as we all know, “divisiveness” is the greatest of all mortal sins, regardless of how far backward only one side is forced to bend to avoid it.

Morally repulsive, one and all. Former Republican blogger John Cole said it best:

Time for the Annual Collapse

It appears Obama will not veto the Defense bill with the hideous detention policies, and I just heard that the Democrats have dropped the millionaire surtax for the payroll tax cuts.

I never knew the amount of depression and self-loathing that was involved in becoming a Democrat. I honestly think I hate Democrats more now that I am one than I did when I was a Republican.

John just doesn’t understand: Democrats just need to compromise more. On something. Anything. Everything, really. Don’t take it from me. Take it from the New York Times. They really know what’s best for America, and that’s more one-sided compromise.

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Codifying Chateau d’If: The Monte Cristo effect

Codifying Chateau d’If

by digby

I think one of the most stunning aspects of the administration’s decision not to veto an historic expansion of government power to imprison even its own citizens indefinitely and without due process is the context. Sure, we live in a very dangerous world. But we’ve been living in one at least since the advent of of The Bomb and the last I heard we were picking off Ad Qaeda members three at a time. The fact that this is happening with the war in Iraq wound down and Afghanistan scheduled to do so as well is what’s odd.

Ginny Sloan of the Constitution Project put it well:

But what will we say to future generations if the National Defense Authorization Act of 2012 (NDAA) becomes law? That legislation contains a provision that authorizes the president to indefinitely imprison, without a criminal charge or court hearing, any suspected terrorist who is captured within the United States — including American citizens.

It is difficult to imagine a greater attack on one of the most basic of individual freedoms protected by our great Constitution. As Justice Antonin Scalia wrote in his dissenting opinion in Hamdi v. Rumsfeld (2004), “The very core of liberty secured by our Anglo-Saxon system of separated powers has been freedom from indefinite imprisonment at the will of the Executive.”

If members of Congress choose — for the first time in our nation’s history — to codify a system of indefinite detention without charge and authorize such confinement on the basis of suspicion alone, they will do so with their eyes wide open. The attacks of 9/11 are now more than ten years old. Although our troops are still engaged in Afghanistan, the fog of war has long since lifted.

Indefinite detention will now be law, not some emergency measure that history will judge to have been a mistake made in a crisis. It is a well thought out codification of certain views that have become commonplace in American society — that “terrorists” (to be defined by whomever sits in the White House) are not to be allowed the due process allowed to other human beings because our government just *knows* they are so dangerous we cannot even take the chance that they won’t be found guilty. That turns the rule of law on its head.

Adam Serwer has been following this story for Mother Jones and described the “changes” this way:

The conference version of the bill gives the White House so much room to maneuver around the “mandatory” nature of the military detention provisions that Congress can argue they’ve given the administration the “flexibility” it needs to fight terrorism effectively. At the same time, the bill creates a presumption of military custody for foreign nationals suspected of terrorism where there was none before.

That means next time a foreign national gets pulled off a plane with their underpants on fire, and the administration doesn’t throw him in a brig somewhere, elected officials can run to the microphones and express their frustration that the White House is defying congressional will.

I think that’s a long shot, don’t you? What administration is not going to simply throw them in the brig rather than “defy congressional will” and try them in a civilian court. It won’t happen.

Instead, we will see “terrorists” (however they’re defined) disappeared into a military justice system indefinitely, just as those Gitmo prisoners, many of them innocent of any serious crime, have been left to moulder in prison basically forever. As Serwer noted, “the transfer restrictions effectively turn Gitmo into the Chateu d’If.” (I have used the same reference many times, calling it “The Count of Monte Cristo effect.”)

The horror of indefinite detention, often in solitary confinement by capricious decision with no due process is one of the greater horrors of the imagination (to me anyway.) Consider what we’ve already done:

One spring day during his three and a half years as an enemy combatant, Jose Padilla experienced a break from the monotony of his solitary confinement in a bare cell in the brig at the Naval Weapons Station in Charleston,South Carolina.

That day, Mr. Padilla, a Brooklyn-born Muslim convert whom the Bush administration had accused of plotting a dirty bomb attack and had detained without charges, got to go to the dentist.

“Today is May 21,” a naval official declared to a camera videotaping the event. “Right now we’re ready to do a root canal treatment on Jose Padilla, our enemy combatant.”

Several guards in camouflage and riot gear approached cell No. 103. They unlocked a rectangular panel at the bottom of the door and Mr. Padilla’s bare feet slid through, eerily disembodied. As one guard held down a foot with his black boot, the others shackled Mr. Padilla’s legs. Next, his hands emerged through another hole to be manacled.

Wordlessly, the guards, pushing into the cell, chained Mr. Padilla’s cuffed hands to a metal belt. Briefly, his expressionless eyes met the camera before he lowered his head submissively in expectation of what came next: noise-blocking headphones over his ears and blacked-out goggles over his eyes. Then the guards, whose faces were hidden behind plastic visors, marched their masked, clanking prisoner down the hall to his root canal.

[…]

Now lawyers for Mr. Padilla, 36, suggest that he is unfit to stand trial. They argue that he has been so damaged by his interrogations and prolonged isolation that he suffers post-traumatic stress disorder and is unable to assist in his own defense. His interrogations, they say, included hooding, stress positions, assaults, threats of imminent execution and the administration of “truth serums.”

A Pentagon spokesman, Lt. Col. Todd Vician, said Sunday that the military disputes Mr. Padilla’s accusations of mistreatment. And, in court papers, prosecutors deny “in the strongest terms” the accusations of torture and say that “Padilla’s conditions of confinement were humane and designed to ensure his safety and security.”

“His basic needs were met in a conscientious manner, including Halal (Muslim acceptable) food, clothing, sleep and daily medical assessment and treatment when necessary,” the government stated. “While in the brig, Padilla never reported any abusive treatment to the staff or medical personnel.”

In the brig, Mr. Padilla was denied access to counsel for 21 months. Andrew Patel, one of his lawyers, said his isolation was not only severe but compounded by material and sensory deprivations. In an affidavit filed Friday, he alleged that Mr. Padilla was held alone in a 10-cell wing of the brig; that he had little human contact other than with his interrogators; that his cell was electronically monitored and his meals were passed to him through a slot in the door; that windows were blackened, and there was no clock or calendar; and that he slept on a steel platform after a foam mattress was taken from him, along with his copy of the Koran, “as part of an interrogation plan.”

Mr. Padilla’s situation, as an American declared an enemy combatant and held without charges by his own government, was extraordinary and the conditions of his detention appear to have been unprecedented in the military justice system.

Philip D. Cave, a former judge advocate general for the Navy and now a lawyer specializing in military law, said, “There’s nothing comparable in terms of severity of confinement, in terms of how Padilla was held, especially considering that this was pretrial confinement.”

Padilla was famously thrown back into the civilian system when the Supreme Court overruled the decision under which he had been held in those conditions. The damage had already been done. Indefinite detention, particularly with solitary confinement, for anyone, American or not, is a form of torture.

I think dday’s analysis of why this happened is probably correct:

Remember that the White House has little problem with indefinite military detention. They just want to be able to dictate when it gets used and on whom. So they obviously see enough flexibility here to carry out unconstrained intelligence gathering and detention policies.

The part at the end, where they hope and pray that Congress will go back and fix the bill if it ever becomes a problem, is just nonsense. And the bill overall is ripe for abuse. The White House simply didn’t want to take the political hit for vetoing a bill that “supports the troops.” And they weren’t aroused enough by the thought of indefinite military detentions to mount any serious opposition to it.

The status quo remains in practice and the symbolism of codifying indefinite detention is probably a price they are willing to pay. The word is that the National Security types were overruled by the political people, but at the end of the day the only people who are worried about this for the long term are a bunch of shrill civil libertarians who are watching some very basic human rights and constitutional principles be eroded even years after the fog of war has cleared.

And those of you who trust that the Obama administration will not misuse this discretion should not be soothed. This law will remain on the books long after he is gone. How do you suppose the first Tea Party president will interpret it?

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The filthy rich play dirty

The filthy rich play dirty

by digby

Remember this from yesterday?

Democrats continue to push Republicans to accept a small income surtax on income over $1 million to offset the cost of renewing the payroll holiday, but with little time until the government shuts down and the current tax cut expires, they may be willing to cut a deal.

Said Sen. Dick Durbin (D-IL), the number two Democrat in the Senate, “We’re open to ideas.”

Here’s one “idea”:

President Barack Obama and Senate Democrats on Wednesday discussed abandoning efforts to impose a surtax on millionaires to help pay for extending a popular payroll tax break for workers, a Senate Democratic leadership aide said.

Obama and fellow Democrats in Congress are trying to find a way to pass the payroll tax extension in the face of stiff Republican opposition to the millionaires surtax.

The tax workers pay to the Social Security retirement system will rise to 6.2 percent from 4.2 percent at the end of the month unless Congress acts to extend the lower rate.

This may be a trial balloon, in which case mark me down as a “hell no.” But I wonder. I cannot imagine the Democrats are willing to shut down the government over this. I have no reason to believe they really care that much about millionaires paying more in taxes.

I’d be happy to be wrong and happy to see them put up a fight over this. But this has the feel of a Christmas kabuki, a dance that’s been all the rage ever since President Obama took office. I doubt any of them want to be the Grinch, but I have a feeling that one Party’s a little bit more comfortable in that role than other.

It’s particularly disheartening in light of this:

Chief executive pay has roared back after two years of stagnation and decline. America’s top bosses enjoyed pay hikes of between 27 and 40% last year, according to the largest survey of US CEO pay. The dramatic bounceback comes as the latest government figures show wages for the majority of Americans are failing to keep up with inflation.

America’s highest paid executive took home more than $145.2m, and as stock prices recovered across the board, the median value of bosses’ profits on stock options rose 70% in 2010, from $950,400 to $1.3m. The news comes against the backdrop of an Occupy Wall Street movement that has focused Washington’s attention on the pay packages of America’s highest paid.

The Guardian’s exclusive first look at the CEO pay survey from corporate governance group GMI Ratings will further fuel debate about America’s widening income gap. The survey, the most extensive in the US, covered 2,647 companies, and offers a comprehensive assessment of all the data now available relating to 2010 pay.

Last year’s survey, covering 2009, found pay rates were broadly flat following a decline in wages the year before. Base salaries in 2009 showed a median increase of around 2%, and annual cash compensation increased just over 1.5%. The troubled stock markets took their toll, and added together CEO pay declined for the third year, though the decrease was marginal, less than three-tenths of a percent. The decline in the wider economy in 2007, 2008 and 2009 far outstripped the decline in CEO pay.

This year’s survey shows CEO pay packages have boomed: the top 10 earners took home more than $770m between them in 2010. As stock prices began to recover last year, the increase in CEO pay outstripped the rise in share value. The Russell 3000 measure of US stock prices was up by 16.93% in 2010, but CEO pay went up by 27.19% overall. For S&P 500 CEOs, the largest companies in the sample, total realised compensation – including perks and pensions and stock awards – increased by a median of 36.47%. Total pay at midcap companies, which are slightly smaller than the top firms, rose 40.2%.

And we ain’t seen nothing yet:

GMI, formerly known as the Corporate Library, is expecting a rash of massive stock option bonuses as many firms awarded their top executives big option deals when the stock markets hit their lows in 2007-2008.

“There’s still a lot of money just waiting in the market,” said Hodgson. He described the upcoming awards as a “bombshell” likely to dwarf this year’s figures.

Still, we can’t tax these fellows or they’ll stop creating all those jobs they’ve been creating and then where will we be?

Nobody’s worth that kind of money, nobody, not even in good times. To do it at a time like this when the whole world is in economic turmoil and millions of people are losing their futures and their dreams is just disgusting. Me, I’m buying pitchfork futures. If this keeps up it won’t end well.

Keep your eye on the cuts to the health care subsidy and medicare and changes to unemployment in appropriations. There’s a lot of bad stuff in that Boehner bill that I’m sure they’d like to get through. If they agree to drop them in exchange for not making millionaires pay for UI, I’ll call it a wash. The big millionaire tax hike battle comes next Christmas.

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A welcome change in volume by @DavidOAtkins

A welcome change

by David Atkins

It’s not the most important rule change in the grand scheme of things, but this is a welcome development nonetheless:

Excessively loud television commercials should be a thing of the past, thanks to the Federal Communications Commission.

Responding to years of complaints that the volume on commercials was much louder than that of the programming that the ads accompany, the FCC on Tuesday passed the Commercial Advertisement Loudness Mitigation Act to make sure that the sound level is the same for commercials and news and entertainment programming…

The act comes a year after Congress passed legislation regarding commercial volume and directed the FCC to come up with enforcement rules. The architect of the bill was Rep. Anna G. Eshoo (D-Menlo Park), who pushed for the legislation after hearing complaints about loud commercials from her family.

The FCC said cable and satellite TV companies as well as local broadcasters will be required to make sure the volume on commercials is kept in check. The rules go into effect in December 2012.

“We’re glad that consumers are finally going to get some relief from extra-loud TV ads,” said Parul P. Desai, policy counsel for Consumers Union. “People have been complaining about the volume of TV commercials for decades.”

It would be easy to joke about this, to call it a luxury 1st world problem, to call it irrelevant when compared with people being foreclosed on and out of work. All of that would be true. But for the millions of Americans of who watch hours and hours of TV every day, this is not unimportant to them. Changing the rule shows that government can be responsive to their needs and do what the “free market” left to its own devices would not.

It’s an easy teaching tool about the power of regulation to step in and force companies to do the right thing when otherwise they would not. And that in turn can have an impact on voter perceptions of regulations that do have more life-and-death consequences.

Now, if only Congress would step in and reverse the ruling allowing pharmaceutical marketing…

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Just a coupla progressive dudes talkin’ transparency

Just a coupla progressive dudes talkin’ transparency

by digby

Here’s an inspiring conversation between Occupier (and blogger) Jesse LaGreca and Raul Grijalva (co-opting the hell out of each other 😉

Read this DKos diary for a thorough and informative take on the Occupy DC actions last week.




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Quote of the Day: The Bobo

Quote of the Day

by digby

David Brooks:

Did you see the Gallup chart that has been making the rounds that many, many more people fear big government than big business? …

This is one more piece of evidence, by the way, that the Occupy movement is the most over-hyped story of the year. The O.W.S. people want one thing, and the rest of the country is shifting in the opposite direction. The only people who lavish attention on the Occupiers are editors at various coastal media outlets. The rule seems to be that the more Louis Vuitton ads a magazine carries, the more stories it will run on O.W.S.

How very droll. Putting Occupy Wall Street in the same sentence as Louis Vuitton is exceptionally clever, I’m sure. No doubt Peggy Noonan and George Will tittered all over their brioche toast and truffle butter when they read it.

But perhaps someone should remind David that he works for a coastal media outlet that carries more Louis Vuitton ads than any other in the nation. If what he says is true,those out-of-touch Occupier elites are what’s keeping him in Guccis.

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That other economic plan: the one without the human sacrifice

That Other Economic Plan

by digby

Lest we forget, there is an alternative. If it weren’t for Rand worshipping lunatics and corporate lackeys, this is what would be done:

Background
After repeated efforts by conservative Washington politicians to reenact the same failed policies, Members of the Congressional Progressive Caucus (CPC) took action. CPC Members traveled across the country listening to the American people. Americans told us they want work and that cutting Social Security, Medicare, Medicaid, unemployment insurance and education is unacceptable; they want big banks to clean up the mess they made and millionaires and billionaires to pay their fair share.
RESTORE the American Dream Act
This bill is a comprehensive package of emergency jobs legislation, sensible revenue raisers, an end the wars and unnecessary weapons platforms and measures that strengthen and protect Medicare, Medicaid and Social Security. Act for the 99 % creates over 5 million jobs over the next two years and reduces the budget deficit by over $2 trillion over the next ten years while protecting the programs Americans rely on.
KEY JOBS CREATION PROVISIONS
 Emergency jobs to put America to Work: creates 2.2 million jobs through on-the-job training and direct hire programs for cops, teachers, firefighters, construction and maintenance workers for schools, parks and public land workers, work study jobs for students, health providers including nurses and assistants and a new Community Corp to take care of our neighborhoods.
 Buy America: requires materials for government contracts are manufactured in the U.S.
 Infrastructure bank: creates an infrastructure bank that will allow private sector partnering with regions, States and localities to create infrastructure projects
 Protection of our wounded veterans – ensures that our veterans are not discriminated against in the workplace for time spent receiving treatment for injuries
 Investment in infrastructure and transportation – provides $50 billion to fix our crumbling roads, bridges, rail lines, sewer systems and to upgrade power lines and mass transit systems
REVENUE INCREASES AND SAVINGS
 Fairness in taxation – requires people that make over $1 million a year to pay their fair share, raising $800B
 Defense spending – A rare consensus has emerged among a wide range of policymakers, deficit reduction plan must tackle Defense spending. Ending unnecessary programs saves $280B
 Unchecked war spending – restricting spending in Afghanistan to planning and executing a responsible troop withdrawal saves ≈ $1.2 T
 Oil and gas industry and polluter taxes – the oil and gas corporations are among the most profitable on Earth; ending tax giveaways and requiring polluters to clean up their mess will raise over $60B
 Wall Street and speculators tax – The financial sector shattered the global economy – this 0.03 percent tax disincentivizes dangerous speculation by slightly raising the cost to trade which raises $350B
 Making Work Pay Tax Credit – this progressive tax refund that would put money into the pockets of those that need it most to boost the economy would be extended for 2 years
PROTECTING MEDICARE, MEDICAID AND SOCIAL SECURITY
 Public option – allowing a public option to operate with private in the health care exchanges saves $88B
 Negotiate drug prices – allowing Medicare to negotiate drug prices with pharmaceutical saves $156B
 Enhancing Medicaid rates – the fastest way to support state governments would be to restore the increased federal Medicaid matching rates
 Scrapping Social Security cap – Social Security by law cannot contribute to the deficit; however people making over $106,800 do not pay taxes on the additional income. To ensure long-term solvency, this requires anyone making over $250,000 to pay the normal social security tax on their upper income
Crazy talk, obviously. But recall that the CBO scored this supposed lunacy and the numbers add up.
If the nation really wants to stimulate the economy while bringing down the long term deficit, this is the way to do it. It turns out is isn’t actually necessary to force a puritanical, austerity program on the people as a sort of human sacrifice to appease the Market Gods, after all.
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