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“GOP Take-No-Risks Approach Is Unraveling”: Wacko Birds Cloud Republicans’ Election Euphoria”

Some Republicans envisioned a successful rope-a-dope strategy for this year’s elections: Don’t make mistakes, and let the Democrats stew in the juices of Obamacare and a strapped middle class.

That take-no-risks approach is unraveling. Congressional Republicans are offering proposals on major matters, and the party’s right wing — whose members Senator John McCain called “wacko birds” — is omnipresent in Washington and across the U.S.

Congressional Republicans have introduced initiatives on immigration, health care, and economic mobility and poverty that are creating policy and political fissures. There were four separate Republican responses to President Barack Obama’s State of the Union address last week.

House Speaker John Boehner wants his chamber to pass immigration reform. Any compromise that is acceptable to Hispanic and Asian-American groups draws fire from the party’s sizable nativist bloc and political consultants who don’t want to divert attention from their campaign against health care reform. The Speaker’s task is enormously complicated, the prospects uphill.

On health care, three leading Republican senators recently offered an alternative to the Patient Protection and Affordable Care Act, one they say is more market-centric. But fewer people would be covered, the prohibition on discriminating against people with pre-existing conditions would be weakened, and the authors already are backing away from a proposal to deny tax benefits for some employer-based plans. Many Democrats would relish a debate over the competing plan.

Florida senator Marco Rubio, a contender for the 2016 Republican presidential nomination, took on economic inequality by proposing to expand the earned income tax credit for poor people without children; Obama cited Rubio’s proposal while offering a similar one during his State of the Union address. Rubio deserves credit for trying, but he has gotten tripped up in the specifics: whether the costs should be offset by other reductions in the tax break for the working poor or whether the entire credit should be reshaped.

And the wacko birds are flocking, with a special eye on women and gays.

On women, former Arkansas governor Mike Huckabee wasn’t an outlier with his claim that Democrats believe women can’t control their libidos. Ken Buck, the right-wing Senate candidate in Colorado and a cancer survivor, inexplicably suggested pregnancy was like cancer. This is the same man who in a 2010 race — when his opponent was a woman — said people should vote for him because “I don’t wear high heels.” He also compared being gay to being an alcoholic.

Then there is the always -provocative Texas congressman Louie Gohmert, who said judges who rule in favor of same-sex marriage “need some basic plumbing lessons.” Or Randy Weber, his fellow Texas representative, who tweeted before the State of the Union that he was waiting for the “Kommandant-in-Chef,” who he called “The Socialistic dictator who’s been feeding US a line or is it ’A-Lying?’” Taxpayers pay Weber $174,000 a year.

Out in the provinces, the right-wing base is restless. The Arizona Republican Party recently censured McCain for leftist tendencies. In a few months, state party platforms will be drafted; keep your eye on Texas, where Republicans have called for the elimination of 16 federal cabinet departments or agencies and have come out against promoting “critical thinking” skills in education.

In Iowa, some activists are plotting to dump the state’s moderately conservative lieutenant governor, Kim Reynolds, at the party’s convention. Governor Terry Branstad, a Republican who is likely to be re-elected, is the longest-serving U.S. governor, and there are expectations he will leave during his next term. Unless the ultra-right-wingers have their way, Reynolds then would become the state’s first female governor (Iowans have never elected a woman to the Senate or House, either).

Democrats have their own crazies on the left, but they aren’t as prevalent or influential.

History and polling data suggest Republicans should do well in November, keeping their House majority and with an outside shot at taking control of the Senate. But some of these big issues and the wacko birds could unsettle these prospects.

 

By: Al Hunt, The National Memo, February 2, 2014

February 4, 2014 Posted by | Economic Inequality, GOP | , , , , , , , | Leave a comment

“The Real Victims”: Sincerest Sympathy To The Filthy Rich

Dear Tom Perkins:

I’m writing to apologize. I do this on behalf of the 99 percent of us who are not multimillionaires. You, of course, are, having made a pile as a venture capitalist and co-founder of the firm Kleiner Perkins Caufield & Byers.

I admit, I’d have thought a guy like you had little to complain about. But that was before you wrote that tear-jerking Jan. 24 letter to The Wall Street Journal revealing the pain, the oppression, the abject sense of vulnerability and fear that go with having a net worth equal to the GNP of some developing nations.

In your letter, you decried the “rising tide of hatred” you’ve experienced at the hands of progressives waging “war” against your people. Your examples were heart-rending. You mentioned popular anger over rising real-estate prices. And “outraged” public reaction to dedicated buses ferrying tech workers to their San Francisco-area jobs. And the people who have called your ex-wife, novelist Danielle Steel, a “snob.”

Oh, the humanity.

There are, you said, parallels to Nazi Germany and its treatment of another oppressed minority, the Jews. “This is a very dangerous drift in our American thinking,” you warned. “Kristallnacht was unthinkable in 1930; is its descendant ‘progressive’ radicalism unthinkable now?”

You’re right. How could we have missed it? Calling Danielle Steel a snob is exactly like that turning point on the road to Holocaust when anti-Jewish riots broke out across Germany, 7,500 Jewish homes and businesses were vandalized, 30,000 Jewish men were sent to concentration camps, 91 Jews were killed and the Nazis, blaming the Jews themselves for the carnage, fined them about $400 million in 1938 U.S. dollars.

You’ve been criticized for what you wrote, but we both know the only thing wrong with it is, you didn’t go far enough. You didn’t mention how one day the rich may be forced to stitch yellow dollar signs to their clothing or have their net worth tattooed on their forearms.

Being forced to pay taxes for the upkeep of schools your children wouldn’t be caught dead attending? That’s exactly like slavery.

Zoning laws that limit you to one measly helipad on your very own land? No difference between that and the Trail of Tears.

Where will it end? Will they make you fly commercial? Buy off the rack? Golf on a public course? Might as well hitch up the boxcars and pack you in.

I confess to having been blind to the suffering of the Affluent-American community. But you’ve opened my eyes. How awful it must be, forced to live in segregated neighborhoods like Brentwood and Star Island in constant fear of metaphorical beatings and rhetorical lynching if you dare get out of your place and whine about the travails of your life of vulgar excess.

Well, sir, thanks to great Affluent-American leaders like you, I have a dream that one day your children will not be judged by the content of their offshore accounts.

You are as human as anyone else. Your manservant puts your pants on one leg at a time just like the rest of us. So I apologize to you on behalf of the 40-year-old man with a college degree struggling to raise his son on a McSalary, the little girl trying to concentrate on algebra while her stomach growls with missed-meal cramps, the Walmart employees collecting food for co-workers, the homeless family praying the social worker will find them shelter for the night as temperature and snow fall steadily.

You know, until I read your letter, I thought they were the ones most deserving of my empathy and concern, these victims of wealth inequality, a tilted playing field and the sheer greed of rapacious money pigs. But you’ve set me straight, and I want you to know I’m with you all the way.

I mean, now that I know who the real victims are.

By: Leonard Pitts, The National Memo, February 3, 2014

February 4, 2014 Posted by | Economic Inequality | , , , , , , , , | Leave a comment

“Standing With The People”: Democratic Governors and Statehouse Candidates To Adopt Obama’s Minimum-Wage Message

Democratic governors and candidates competing in battleground states are planning to make a minimum-wage increase a centerpiece of this year’s campaigns, taking the baton from President Obama’s State of the Union address Tuesday night, according to a memo shared with National Journal.

Raising the wage was a core part of Obama’s larger theme of boosting “opportunity” for all, and it’s a policy that Democrats running for statehouses think will help them politically, according to the memo from the Democratic Governors Association.

“No issue better crystalizes the broader debate between 2014 Democratic and Republican gubernatorial candidates than that of a minimum wage hike,” DGA Communications Director Danny Kanner says in the memo.

This is a big year for the Democratic Governors Association, given the number of Republican governors swept in during the 2010 wave who are now up for reelection.

Republican governors from Florida to Wisconsin have consistently opposed efforts to raise the minimum wage, and Dems think that choice will come back to bite the GOP. The DGA points to a recent Wall Street Journal poll showing 63 percent of Americans support raising the wage and a separate Quinnipiac poll showing a plurality of Republican voters agree.

While it’s not surprising that Democrats would echo the president on a central policy goal, raising the minimum wage has until recently been seen as the domain of the party’s progressive wing and an issue that candidates in battleground states might shy away from.

But that doesn’t seem to be the case when it comes to a handful of gubernatorial races, at least. In Maine, while Republican Gov. Paul LePage has vetoed legislation to raise the minimum wage, Rep. Michael Michaud, the presumed Democratic nominee, cosponsored a bill in the House to raise the wage nationwide.

Democrat Mark Schauer, who is hoping to oust Michigan Gov. Rick Snyder, has proposed boosting the wage to $9.25 an hour and indexing it to inflation, and said he would make hiking it a top priority if elected.

In Iowa, Jack Hatch wants to go even further and raise the wage to $10.10, which would give the important political state the highest minimum wage in the country. Charlie Crist, the Republican-turned-Democrat former governor, who is running to reclaim his old seat in Florida’s statehouse, also supports setting the wage at $10.10.

Meanwhile in Illinois, where Democrats are hoping to defend Gov. Pat Quinn as he heads into a tough reelection battle, all four Republican challengers oppose Quinn’s proposal to boost the wage.

And Democrats think the message will resonate as well in redder states like Kansas, where they’re hoping to push aside Republican Gov. Sam Brownback.

Kanner says Democrats will use the minimum wage to present a larger economic message.

“These are two starkly different economic philosophies, and the minimum wage debate makes that clear. In this case, Democrats are standing with the American people while Republicans, once again, thumb their nose at them,” he said.

By: Alex Seitz-Wald, The National Journal, January 29, 2014

February 3, 2014 Posted by | Economic Inequality, Minimum Wage | , , , , , | Leave a comment

“Paranoia Of The Plutocrats”: A Class Of People Who Are Alarmingly Detached From Reality

Rising inequality has obvious economic costs: stagnant wages despite rising productivity, rising debt that makes us more vulnerable to financial crisis. It also has big social and human costs. There is, for example, strong evidence that high inequality leads to worse health and higher mortality.

But there’s more. Extreme inequality, it turns out, creates a class of people who are alarmingly detached from reality — and simultaneously gives these people great power.

The example many are buzzing about right now is the billionaire investor Tom Perkins, a founding member of the venture capital firm Kleiner Perkins Caufield & Byers. In a letter to the editor of The Wall Street Journal, Mr. Perkins lamented public criticism of the “one percent” — and compared such criticism to Nazi attacks on the Jews, suggesting that we are on the road to another Kristallnacht.

You may say that this is just one crazy guy and wonder why The Journal would publish such a thing. But Mr. Perkins isn’t that much of an outlier. He isn’t even the first finance titan to compare advocates of progressive taxation to Nazis. Back in 2010 Stephen Schwarzman, the chairman and chief executive of the Blackstone Group, declared that proposals to eliminate tax loopholes for hedge fund and private-equity managers were “like when Hitler invaded Poland in 1939.”

And there are a number of other plutocrats who manage to keep Hitler out of their remarks but who nonetheless hold, and loudly express, political and economic views that combine paranoia and megalomania in equal measure.

I know that sounds strong. But look at all the speeches and opinion pieces by Wall Streeters accusing President Obama — who has never done anything more than say the obvious, that some bankers behaved badly — of demonizing and persecuting the rich. And look at how many of those making these accusations also made the ludicrously self-centered claim that their hurt feelings (as opposed to things like household debt and premature fiscal austerity) were the main thing holding the economy back.

Now, just to be clear, the very rich, and those on Wall Street in particular, are in fact doing worse under Mr. Obama than they would have if Mitt Romney had won in 2012. Between the partial rollback of the Bush tax cuts and the tax hike that partly pays for health reform, tax rates on the 1 percent have gone more or less back to pre-Reagan levels. Also, financial reformers have won some surprising victories over the past year, and this is bad news for wheeler-dealers whose wealth comes largely from exploiting weak regulation. So you can make the case that the 1 percent have lost some important policy battles.

But every group finds itself facing criticism, and ends up on the losing side of policy disputes, somewhere along the way; that’s democracy. The question is what happens next. Normal people take it in stride; even if they’re angry and bitter over political setbacks, they don’t cry persecution, compare their critics to Nazis and insist that the world revolves around their hurt feelings. But the rich are different from you and me.

And yes, that’s partly because they have more money, and the power that goes with it. They can and all too often do surround themselves with courtiers who tell them what they want to hear and never, ever, tell them they’re being foolish. They’re accustomed to being treated with deference, not just by the people they hire but by politicians who want their campaign contributions. And so they are shocked to discover that money can’t buy everything, can’t insulate them from all adversity.

I also suspect that today’s Masters of the Universe are insecure about the nature of their success. We’re not talking captains of industry here, men who make stuff. We are, instead, talking about wheeler-dealers, men who push money around and get rich by skimming some off the top as it sloshes by. They may boast that they are job creators, the people who make the economy work, but are they really adding value? Many of us doubt it — and so, I suspect, do some of the wealthy themselves, a form of self-doubt that causes them to lash out even more furiously at their critics.

Anyway, we’ve been here before. It’s impossible to read screeds like those of Mr. Perkins or Mr. Schwarzman without thinking of F.D.R.’s famous 1936 Madison Square Garden speech, in which he spoke of the hatred he faced from the forces of “organized money,” and declared, “I welcome their hatred.”

President Obama has not, unfortunately, done nearly as much as F.D.R. to earn the hatred of the undeserving rich. But he has done more than many progressives give him credit for — and like F.D.R., both he and progressives in general should welcome that hatred, because it’s a sign that they’re doing something right.

 

By: Paul Krugman, Op-Ed Columnist, The New York Times, January 26, 2014

January 28, 2014 Posted by | Economic Inequality, Wall Street | , , , , , , , | Leave a comment

“Why There’s No Outcry”: At Some Point, Working People, Students, And The Broad Public Will Have Had Enough

People ask me all the time why we don’t have a revolution in America, or at least a major wave of reform similar to that of the Progressive Era or the New Deal or the Great Society.

Middle incomes are sinking, the ranks of the poor are swelling, almost all the economic gains are going to the top, and big money is corrupting our democracy. So why isn’t there more of a ruckus?

The answer is complex, but three reasons stand out.

First, the working class is paralyzed with fear it will lose the jobs and wages it already has.

In earlier decades, the working class fomented reform. The labor movement led the charge for a minimum wage, 40-hour workweek, unemployment insurance, and Social Security.

No longer. Working people don’t dare. The share of working-age Americans holding jobs is now lower than at any time in the last three decades and 76 percent of them are living paycheck to paycheck.

No one has any job security. The last thing they want to do is make a fuss and risk losing the little they have.

Besides, their major means of organizing and protecting themselves — labor unions — have been decimated. Four decades ago more than a third of private-sector workers were unionized. Now, fewer than 7 percent belong to a union.

Second, students don’t dare rock the boat.

In prior decades students were a major force for social change. They played an active role in the Civil Rights movement, the Free Speech movement, and against the Vietnam War.

But today’s students don’t want to make a ruckus. They’re laden with debt. Since 1999, student debt has increased more than 500 percent, yet the average starting salary for graduates has dropped 10 percent, adjusted for inflation. Student debts can’t be cancelled in bankruptcy. A default brings penalties and ruins a credit rating.

To make matters worse, the job market for new graduates remains lousy. Which is why record numbers are still living at home.

Reformers and revolutionaries don’t look forward to living with mom and dad or worrying about credit ratings and job recommendations.

Third and finally, the American public has become so cynical about government that many no longer think reform is possible.

When asked if they believe government will do the right thing most of the time, fewer than 20 percent of Americans agree. Fifty years ago, when that question was first asked on standard surveys, more than 75 percent agreed.

It’s hard to get people worked up to change society or even to change a few laws when they don’t believe government can possibly work.

You’d have to posit a giant conspiracy in order to believe all this was the doing of the forces in America most resistant to positive social change.

It’s possible. of course, that rightwing Republicans, corporate executives, and Wall Street moguls intentionally cut jobs and wages in order to cow average workers, buried students under so much debt they’d never take to the streets, and made most Americans so cynical about government they wouldn’t even try for change.

But it’s more likely they merely allowed all this to unfold, like a giant wet blanket over the outrage and indignation most Americans feel but don’t express.

Change is coming anyway. We cannot abide an ever-greater share of the nation’s income and wealth going to the top while median household incomes continue too drop, one out of five of our children living in dire poverty, and big money taking over our democracy.

At some point, working people, students, and the broad public will have had enough. They will reclaim our economy and our democracy. This has been the central lesson of American history.

Reform is less risky than revolution, but the longer we wait the more likely it will be the latter.

 

By: Robert Reich, The Robert Reich Blog, January 25, 2014

January 27, 2014 Posted by | Democracy, Economic Inequality | , , , , , , , | 1 Comment