A “Federal Family” Affair: Coordinated Efforts, Except At Fox News
FEMA chief Craig Fugate and National Weather Service director Jack Hayes recently wrote an op-ed about preparations for hurricane season. They noted the coordinated efforts of “the entire federal family, state, local and tribal governments, the faith-based and non-profit communities, and the private sector.”
This wouldn’t be especially interesting, except as reader J.M. noted via email, Republican media outlets are apparently worked up about the phrase “federal family.”
Here, for example, is a Fox News report that ran on Monday:
[B]efore Irene fizzled, the Obama White House wanted to make sure that Irene was no Katrina and that, in fact, the president and his aides would be seen in compassionate command of the situation.
Hence the introduction of what may be the most condescending euphemism for the national government in its long history of condescending euphemizing: “federal family.”
This new phrase was supposed to, [Fox News’ Power Play] supposes, make anxious East Coasters feel the love of a caring federal government — tender squeeze from the Department of Homeland Security, a gentle embrace from the National Oceanic and Atmospheric Administration. The phrase was a centrally distributed talking point, appearing in op-eds, press releases and statements from across the administration.
No major hurricane had hit the U.S. mainland in the Obama era, and the “federal family” had obviously been saving up a lot of new approaches to differentiate itself from the clan under President George W. Bush.
National Review’s Andrew McCarthy was also troubled by the “federal family” phrase, as was Doug Powers at Michelle Malkin’s site, though both appeared to be working from the assumptions of the Fox News report.
There’s just one problem: Fox News’ report is completely wrong and based on lazy assumptions, which could have been avoided if it had taken 30 seconds to check.
Fox News said the “federal family” phrase was “introduced” by the Obama administration, adding that it’s a “new phrase” intended to draw a distinction between Obama’s team and Bush’s. What Fox News didn’t bother to find out is that the Bush administration also used the “federal family” phrase, many times, as did the Clinton administration, many times. It simply refers to a group of federal agencies that work together on emergency response.
It’s not “new”; it wasn’t “introduced” by the Obama administration; it’s not part of a “condescending” liberal scheme to make Americans love the government; it has nothing to do with embarrassing the Bush administration, since the Bush team used the same rhetoric. Fox News just didn’t bother to get its facts straight before misleading its audience.
There’s a good reason those who rely on Fox News seem so confused, so often — they’re routinely lied to.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, August 31, 2011
This Texan Ain’t Shooting Straight: Rick Perry’s Double Talk On Social Security And The Constitution
This we know: Texas Gov. Rick Perry, the apparent GOP 2012 front-runner, doesn’t like Social Security.
He has, for example, described it in his recent book as not only a “Ponzi scheme,” but “by far the best example” of a program “violently tossing aside any respect for our founding principles,” and as having been put in place “at the expense of respect for the Constitution and limited government.” Elsewhere he has said that the Constitution’s “general welfare” clause does not cover Social Security and Medicare. In other words not only is Social Security bad policy, Perry believes, but actually in defiance of our founding principles in general and the Constitution in particular.
While he and his campaign had appeared to dance away from these characterizations, Perry was at it again in Iowa over the weekend, calling the program a “monstrous lie,” and saying that he stood by everything in his book (including, presumably, Social Security’s unconstitutionality).
So here’s what I want to know: What would President Rick Perry do about Social Security?
It’s one thing to note that Perry makes crazy comments. As Washington Monthly’s Steve Benen notes, “Perry is positioning himself well outside the American mainstream. It’s going to impress the Republican Party’s far-right base, but it won’t impress anyone else.”
But there is a necessary connection between views and policies. What would Perry’s policy toward Social Security be in the White House?
As it happens, he answered that question, in part, during his Iowa campaign swing. This from the Houston Chronicle:
He told the Ottumwa crowd that for people who are drawing Social Security or near eligibility “like me,” he wasn’t proposing a change in the program. But he said there should be a national conversation about potential changes for others, including raising the age of eligibility and establishing a threshold based on a person’s means.
“Does Warren Buffett need to get Social Security? Maybe not,” he said.
Huh? Let me see if I understand this. Social Security “violently tossed aside any respect for our founding principles,” and was instituted at the “expense of respect for the Constitution.” And his solution to these problems is … means testing? And a national conversation about entitlement reform?
Those responses seem awfully conventional for a pol who is so self-consciously talking such a big, radical game about one of the nation’s beloved government programs. Either he’s tossing cow chips when he decries the program, or has something else under his hat when he spouts mealy-mouthed solutions to what he sees as its problems. But either way, this Texan ain’t shooting straight.
Reporters should press Perry on Social Security—does he really believe the program is unconstitutional? If so, doesn’t he have an obligation to defend the Constitution by ending the illegal program (including for people drawing it or nearing eligibility)? And if not, what exactly does he mean when he says that the program violently tosses aside respect for the Constitution? And if it is constitutional, what is its constitutional basis, if not the general welfare clause?
If that all seems a bit much, maybe the moderator of the next GOP debate can boil it down simply: “Raise your hand if you think Social Security is unconstitutional.”
By: Robert Schlesinger, U. S. News and World Report, August 29, 2011
Make Believe Worlds And Autoimmune Disorders: Our Politics Are Sick
We have a tendency to elect presidents who seem like the antitheses of their immediate predecessors — randy young Kennedy the un-Eisenhower, earnest truth-telling Carter the un-Nixon, charismatic Reagan the un-Carter, randy young Clinton the un-H.W. Bush, cool and cerebral Obama the un-W.
So Rick Perry fits right into that winning contrapuntal pattern. He’s the very opposite of careful and sober and understated, in his first days as an official candidate suggesting President Obama maybe doesn’t love America (“Go ask him”) and that loose monetary policy is “treasonous.” (“Look, I’m just passionate about the issue,” he explained later about his anti-Federal Reserve outburst, before switching midsentence to first-person plural, “and we stand by what we said.”)
Yet the most troubling thing about Perry (and Michele Bachmann and so many more), what’s new and strange and epidemic in mainstream politics, is the degree to which people inhabit their own Manichaean make-believe worlds. They totally believe their vivid fictions.
Everyone is entitled to his or her own opinion. Perry is even entitled to his opinion that states such as Texas might want to secede, as he threatened at a Tea Party rally two years ago. But he’s not entitled to his own facts. “When we came into the nation in 1845,” he’d earlier told some bloggers visiting his office, “we were a republic. We were a stand-alone nation. And one of the deals was, we can leave anytime we want. So we’re kind of thinking about that again.” That special opt-out provision is entirely fiction, a Texas myth the governor of Texas apparently thinks is real.
Perry also believes in the fiction of intelligent design. Campaigning in New Hampshire, he said that in Texas public schools, “we teach both creationism and evolution” — an assertion that’s a fiction itself; last month the Texas Board of Education unanimously rejected creationist biology textbooks. In Iowa, Perry served up a fresh viral-Internet fiction as his what-the-hell example of federal over-regulation — a new rule forcing farmers to get special drivers’ licenses to drive tractors. In fact, the Obama administration had just taken the very opposite position, ruling that states should maintain “common sense exemptions” for tractor-driving farmers.
Sincere, passionate, hysterical belief that the country is full of (make-believe) anti-American enemies and (fictional) foreign horrors is the besetting national disease. And I’ve diagnosed the systemic problem: the American body politic suffers from autoimmune disorders.
It’s a metaphor, but it’s not a joke. I’ve read a lot about autoimmune diseases — the literal, medical kinds, also disconcertingly on the rise — because several members of my family have them. At some point, our bodies’ own immune systems went nuts, mistaking healthy pieces of our anatomies — a pancreas, a thyroid, a joint — for foreign tissue, dangerous enemies within, and proceeded to attack and try to destroy them. It’s as close to tragedy as biology gets.
Which is pretty much exactly what’s been happening the last decade in our politics. The Truthers decided the U.S. government was behind 9/11. Others decided our black president is definitely foreign-born and Muslim. Tea Party Republicans are convinced his administration is crypto-socialist and/or proto-fascist. The anti-Shariah people are terrified of the nonexistent threat of Islamic law infecting American jurisprudence. It’s now considered reasonable to regard organs and limbs of the federal government — the E.P.A., the education department, the Federal Reserve — as tumors that must be removed. Taxation itself is now considered a parasitic pathogen rather than a crucial part of our social organism.
Many autoimmune diseases of the literal kind, such as Type 1 diabetes and multiple sclerosis, are apparently triggered by stress. For the sociopolitical autoimmune epidemic, there are plenty of plausibly precipitating mega-stresses: the 9/11 attacks and the resulting wars, a decade of stagnant incomes, chronic job insecurity, hyper-connected digitalism, real estate wipeout, teetering financial system, take your pick.
Exposure to chemicals or infections also play a role in triggering autoimmune disorders. My pathogenic scheme’s got that, too: the new streams of iffy infopinion, via talk radio and cable news and the Web, seeping into our political bloodstream 24/7.
Of course, metaphors are just … metaphors. Maybe in 2031 we’ll look back and smile and shake our heads and see the pathology of this haywire age as more psychological than physiological, a temporary national nervous breakdown, like the late 1960s. But what if our current, self-destructive political dysfunction really is exactly like an autoimmune disorder? They are generally permanent, chronic conditions. Only some are debilitating, and most are treatable, but they are all incurable.
By: Kurt Anderson, Op-Ed Columnist, The New York Times, August 19, 2011
Corporate Dysmorphia: Why “Business Needs Certainty” Is Destructive
If you read the business and even the political press, you’ve doubtless encountered the claim that the economy is a mess because the threat to reregulate in the wake of a global-economy-wrecking financial crisis is creating “uncertainty.” That is touted as the reason why corporations are sitting on their hands and not doing much in the way of hiring and investing.
This is propaganda that needs to be laughed out of the room.
I approach this issue as as a business practitioner. I have spent decades advising major financial institutions, private equity and hedge funds, and very wealthy individuals (Forbes 400 level) on enterprises they own. I’ve run a profit center in a major financial firm and have have also operated a consulting business for over 20 years. So I’ve had extensive exposure to the dysfunction I am about to describe.
Commerce is all about making decisions and committing resources with the hope of earning profit when the managers cannot know the future. “Uncertainty” is used casually by the media, but when trying to confront the vagaries of what might happen, analysts distinguish risk from “uncertainty”, which for them has a very specific meaning. “Risk” is what Donald Rumsfeld characterized as a known unknown. You can still estimate the range of likely outcomes and make a good stab at estimating probabilities within that range. For instance, if you open an ice cream store in a resort area, you can make a very good estimate of what the fixed costs and the margins on sales will be. It is much harder to predict how much ice cream you will actually sell. That is turn depends largely on foot traffic which in turn is largely a function of the weather (and you can look at past weather patterns to get a rough idea) and how many people visit that town (which is likely a function of the economy and how that particular resort area does in a weak economy).
Uncertainty, by contrast, is unknown unknowns. It is the sort of risk you can’t estimate in advance. So businesses also have to be good at adapting when Shit Happens. Sometimes that Shit Happening can be favorable, but they still need to be able to exploit opportunities (like an exceptionally hot summer producing off the charts demand for ice cream) or disaster (like the Fukushima meltdown disrupting global supply chains). That implies having some slack or extra resources at your disposal, or being able to get ready access to them at not too catastrophic a cost.
So why aren’t businesses investing or hiring? “Uncertainty” as far as regulations are concerned is not a major driver. Surveys show that the “uncertainty” bandied about in the press really translates into “the economy stinks, I’m not in a business that benefits from a bad economy, and I’m not going to take a chance when I have no idea when things might turn around.”
The “certainty” they are looking for is concrete evidence that prevailing conditions have really turned. But with so many people unemployed, growth flagging in advanced economies, China and other emerging economies putting on the brake as their inflation rates become too high, and a very real risk of another financial crisis kicking off in the Eurozone, there isn’t any reason to hope for things to magically get better on their own any time soon. In fact, if you look at the discussion above, we actually have a very high degree of certainty, just of the wrong sort, namely that growth will low to negative for easily the next two years, and quite possibly for a Japan-style extended period.
So why this finger pointing at intrusive regulations, particularly since they are mysteriously absent? For instance, Dodd Frank is being water down in the process of detailed rulemaking, and the famed Obamacare actually enriches Big Pharma and the health insurers.
The problem with the “blame the government” canard is that it does not stand up to scrutiny. The pattern businesses are trying to blame on the authorities, that they aren’t hiring and investing due to intrusive interference, was in fact deeply entrenched before the crisis and was rampant during the corporate friendly Bush era. I wrote about it back in 2005 for the Conference Board’s magazine.
In simple form, this pattern resulted from the toxic combination of short-termism among investors and an irrational focus on unaudited corporate quarterly earnings announcements and stock-price-related executive pay, which became a fixture in the early 1990s. I called the pattern “corporate dysmorphia”, since like body builders preparing for contests, major corporations go to unnatural extremes to make themselves look good for their quarterly announcements.
An extract from the article:
Corporations deeply and sincerely embrace practices that, like the use of steroids, pump up their performance at the expense of their well-being…
Despite the cliché “employees are our most important asset,” many companies are doing everything in their power to live without them, and to pay the ones they have minimally. This practice may sound like prudent business, but in fact it is a reversal of the insight by Henry Ford that built the middle class and set the foundation for America’s prosperity in the twentieth century: that by paying workers well, companies created a virtuous circle, since better-paid staff would consume more goods, enabling companies to hire yet more worker/consumers.
Instead, the Wal-Mart logic increasingly prevails: Pay workers as little as they will accept, skimp on benefits, and wring as much production out of them as possible (sometimes illegally, such as having them clock out and work unpaid hours). The argument is that this pattern is good for the laboring classes, since Wal-Mart can sell goods at lower prices, providing savings to lower-income consumers like, for instance, its employees. The logic is specious: Wal-Mart’s workers spend most of their income on goods and services they can’t buy at Wal-Mart, such as housing, health care, transportation, and gas, so whatever gains they recoup from Wal-Mart’s low prices are more than offset by the rock-bottom pay.
Defenders may argue that in a global economy, Americans must accept competitive (read: lower) wages. But critics such as William Greider and Thomas Frank argue that America has become hostage to a free-trade ideology, while its trading partners have chosen to operate under systems of managed trade. There’s little question that other advanced economies do a better job of both protecting their labor markets and producing a better balance of trade—in most cases, a surplus.
The dangers of the U.S. approach are systemic. Real wages have been stagnant since the mid-1970s, but consumer spending keeps climbing. As of June, household savings were .02 percent of income (note the placement of the decimal point), and Americans are carrying historically high levels of debt. According to the Federal Reserve, consumer debt service is 13 percent of income. The Economist noted, “Household savings have dwindled to negligible levels as Americans have run down assets and taken on debt to keep the spending binge going.” As with their employers, consumers are keeping up the appearance of wealth while their personal financial health decays.
Part of the problem is that companies have not recycled the fruits of their growth back to their workers as they did in the past. In all previous postwar economic recoveries, the lion’s share of the increase in national income went to labor compensation (meaning increases in hiring, wages, and benefits) rather than corporate profits, according to the National Bureau of Economic Analysis. In the current upturn, not only is the proportion going to workers far lower than ever before—it is the first time that the share of GDP growth going to corporate coffers has exceeded the labor share.
And businesses weren’t using their high profits to invest either:
Companies typically invest in times like these, when profits are high and interest rates low. Yet a recent JP Morgan report notes that, since 2002, American companies have incurred an average net financial surplus of 1.7 percent of GDP, which contrasts with an average deficit of 1.2 percent of GDP for the preceding forty years. While firms in aggregate have occasionally run a surplus, “. . . the recent level of saving by corporates is unprecedented. . . .It is important to stress that the present situation is in some sense unnatural. A more normal situation would be for the global corporate sector—in both the G6 and emerging economies—to be borrowing, and for households in the G6 economies to be saving more, ahead of the deterioration in demographics.”
The problem is that the “certainty” language reveals what the real game is, which is certainty in top executive pay at the expense of the health of the enterprise, and ultimately, the economy as a whole. Cutting costs is as easy way to produce profits, since the certainty of a good return on your “investment” is high. By contrast, doing what capitalists of legend are supposed to do, find ways to serve customer better by producing better or novel products, is much harder and involves taking real chances and dealing with very real odds of disappointing results. Even though we like to celebrate Apple, all too many companies have shunned that path of finding other easier ways to burnish their bottom lines. and it has become even more extreme. Companies have managed to achieve record profits in a verging-on-recession setting.
Indeed, the bigger problem they face is that they have played their cost-focused business paradigm out. You can’t grow an economy on cost cutting unless you have offsetting factors in play, such as an export led growth strategy, or an ever rising fiscal deficit, or a falling household saving rate that has not yet reached zero, or some basis for an investment spending boom. But if you go down the list, and check off each item for the US, you will see they have exhausted the possibilities. The only one that could in theory operate is having consumers go back on a borrowing spree. But with unemployment as high as it is and many families desperately trying to recover from losses in the biggest item on their personal balance sheet, their home, that seems highly unlikely. Game over for the cost cutting strategy.
And contrary to their assertions, just as they’ve managed to pursue self-limiting, risk avoidant corporate strategies on a large scale, so too have they sought to use government and regulation to shield themselves from risk.
Businesses have had at least 25 to 30 years near complete certainty — certainty that they will pay lower and lower taxes, that they’ will face less and less regulation, that they can outsource to their hearts’ content (which when it does produce savings, comes at a loss of control, increased business system rigidity, and loss of critical know how). They have also been certain that unions will be weak to powerless, that states and municipalities will give them huge subsidies to relocate, that boards of directors will put top executives on the up escalator for more and more compensation because director pay benefits from this cozy collusion, that the financial markets will always look to short term earnings no matter how dodgy the accounting, that the accounting firms will provide plenty of cover, that the SEC will never investigate anything more serious than insider trading (Enron being the exception that proved the rule).
So this haranguing about certainty simply reveals how warped big commerce has become in the US. Top management of supposedly capitalist enterprises want a high degree of certainty in their own profits and pay. Rather than earn their returns the old fashioned way, by serving customers well, by innovating, by expanding into new markets, their ‘certainty’ amounts to being paid handsomely for doing things that carry no risk. But since risk and uncertainty are inherent to the human condition, what they instead have engaged in is a massive scheme of risk transfer, of increasing rewards to themselves to the long term detriment of their enterprises and ultimately society as a whole.
By: Yves Smith, Salon, August 14, 2011
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