Category: Economics

With No Evident Sense of Irony

By , February 25, 2011 9:09 am

Paul Krugman is at it again. In a piece titled Shock Doctrine, U.S.A., he sees all sorts of connections between what’s happening in Madison and what happened in Baghdad in 2003. And of course, there’s the obligatory reference to Bush. Can’t have a Governor Scott Walker walking around without a Bush stamped on his forehead like a scarlet letter. That mission accomplished, he takes off in a way that only an op-ed writer cum Nobel laureate can–a laureate with no sense of irony.

Referencing Naomi Klein’s best-selling book “The Shock Doctrine,” he argues that Paul Bremer’s push for privatization in Iraq

was part of a broader pattern. From Chile in the 1970s onward, [Klein] suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society.

Ahem, comments by the newly elected Mayor of Chicago come to mind, but that doesn’t count, I suppose, because his and his boss’s multi-trillion dollar exploitation of a crises imposed a vision of a less harsh (for some), more equal (for some), more democratic (for some) society. But I digress.

Krugman continues,

In recent weeks, Madison has been the scene of large demonstrations against the governor’s budget bill, which would deny collective-bargaining rights to public-sector workers. Gov. Scott Walker claims that he needs to pass his bill to deal with the state’s fiscal problems. But his attack on unions has nothing to do with the budget. In fact, those unions have already indicated their willingness to make substantial financial concessions — an offer the governor has rejected.

What he means by the attack on unions having nothing to do with the budget is that . . . hell, I have no idea what he means. If collective bargaining has no impact on Wisconsin’s budget, then union members have been getting screwed by their leaders for a long, long time.

He continues,

What’s happening in Wisconsin is, instead, a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy.

Pot to kettle and more. Where are the corporations and the wealthy in the drama in Madison? Last I checked, we were talking about public employee unions protesting against the state government, which gets its political power from average Joe Wisconsin.

And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside.

Only 144 pages long? Not over 1,000? And there are some extraordinary things hidden in there too? Really?

I’m out of time, but you get the idea. But if you don’t, let me take you to the 3rd from the last paragraph in Krugman’s piece, the paragraph where he trots some other allegedly evil doers out on to the stage, out from the shadows for all conspiracy theorists to see,

If this [the push for privatization of state-owned power plants] sounds to you like a perfect setup for cronyism and profiteering — remember those missing billions in Iraq? — you’re not alone. Indeed, there are enough suspicious minds out there that Koch Industries, owned by the billionaire brothers who are playing such a large role in Mr. Walker’s anti-union push, felt compelled to issue a denial that it’s interested in purchasing any of those power plants. Are you reassured?

And the left criticizes Glenn Beck. At least he apologizes occasionally.

Bountiful Baskets – St. George, Utah

By , February 20, 2011 11:08 pm

Saturday morning at 7:00 AM I drove up the street from my mother’s winter home to St. George’s Sandstone Elementary to pick up my first Bountiful Basket. My daughter had been raving about them for some time now, so I had to check them out.

Verdict? She’s right. For just $15, this is what I got:

No, I didn’t walk away with all of those baskets. They gave me two, one from the left (vegetables) and one from the right (fruit). Here’s a close up of the fruit basket.

My mother tells me that as much as I got, the baskets are often much fuller. I highly recommend taking advantage of the Bountiful Baskets in your town.

Oh Wisconsin: Guess Who Lost the Narrative

By , February 19, 2011 11:38 pm

The teachers’ union in Wisconsin–for that matter, the Democratic Party–will lose their battle because they lost the narrative very early on. From the start, the narrative has been that Governor Walker has a budget crisis on his hand, and one way to fix it is to have the teachers pitch in on the cost of their own benefits. And that’s a winning hand for Walker.

That he also wants to make changes to their collective bargaining rights has been lost in all the noise about benefits, at least until recently. To me, at least, that’s a battle the teachers could win. But they won’t because Governor Walker had them at ‘benefits.’

We’re All Neighbors Now

By , February 17, 2011 9:22 am

This almost needs no comment. The New York Times reports on the protests in Wisconsin over Governor Walker’s move to “sharply curtail the collective bargaining rights and slash benefits for most public sector workers in the state”:

The battle in Wisconsin, which some view as a precursor to similar fights in other states, was drawing attention around the country, including from Education Secretary Arne Duncan, who said he planned to talk to Mr. Walker by telephone on Thursday. “Where we’re fighting each other, where we’re divisive, where we’re demonizing or vilifying any group, including unions, I don’t think that helps us get where we need to go as a country,” Mr. Duncan told CNN on Thursday morning.

President Obama also weighed in during an interview Wednesday with a Wisconsin TV station, “I think it’s very important for us to understand that public employees, they’re our neighbors, they’re our friends. These are folks who are teachers and they’re firefighters and they’re social workers and they’re police officers.”

But, I guess, bankers and corporate executives are not.

A Majority of Uniformed Americans is a Whole Lot of Nothing

By , February 16, 2011 9:58 pm

About the only thing I agree with Mark Bittman on in this column is that GMO food should be labeled. The rest is, well, an argument built on perhapses and supported by a bunch of maybes. Here’s a whiff:

In one paragraph he writes,

[That a transgenic fish could escape and breed with a wild fish] is impossible, say the creators of the G.E. salmon — a biotech company called AquaBounty — whose interest in approval makes their judgment all but useless.

So AquaBounty’s judgment is almost useless on this subject. Fair enough. Their economic interest calls their impartiality into question. They could be–probably are–biased. Let’s not rely on what they say, Bittman says.

But then he writes,

The subject [of GMO food] is unquestionably complex. Few people outside of scientists working in the field — self included — understand much of anything about gene altering. Still, an older ABC poll found that a majority of Americans believe that G.M.O.’s are unsafe . . .

So, few people understand this stuff, but he’ll cite a survey of those who don’t to support his protest against GMO food. Uninformed people think the stuff is unsafe, and I’m supposed to care? Like AquaBounty, their judgment is probably useless–unless you’re Mark Bittman and need some maybes to support your perhapses.

Update:That Bittman didn’t cite the source for his “older ABC poll” bothered me, so I Googled “abc g.m.o.” and found at least three “older” ABC polls in the first five hits. My educated guess is that Bittman is referring to this one from June 19, 2001 (also found here). That poll says that 52% of the people polled says GMO food is unsafe, 35% unsafe, while 92% want it labeled.

But in quoting this poll, Bittman ignores a trend, one that works against him. A July 13, 2003 ABC poll says, “There have been gains in the belief that genetically modified food is safe to eat – up 11 points since 2001, to 46 percent.” Moreover, whereas in 2001, 55% said they would be less likely to buy GMO food if labeled as such, 52% took that position in 2003. In other words, the trend is against him.

There’s at Least one Black Man With Tricks Up His Sleeve

By , February 15, 2011 7:10 pm

Megan McCardle has something constructive to say about Obama’s budget. As I read it, I couldn’t help thinking of Herman Cain’s Tweet: “I told y’all I don’t have any tricks up my sleeve.” I’m not sure how many more President Obama has left after this budget.

Quien Es Mas Macho? The New York Times Takes a Stand

By , February 15, 2011 9:41 am

The New York Times editorial board opined on Obama’s new budget today. In the following paragraph, you can get it flavor of how they think it stacks up against the one proposed by House Republicans:

The questions are whether [the Obama budget’s] tough choices are also wise choices and whether it stands a chance in a Congress in which Republicans, who now dominate the House, are obsessed with making indiscriminate short-term cuts in programs they never liked anyway. The Republican cuts would eviscerate vital government functions while not having any lasting impact on the deficit. (emphasis supplied here and below)

Pay attention to that word vital as we proceed, but first, let’s allow the Times to give Obama a hall pass:

What Mr. Obama’s budget is most definitely not is a blueprint for dealing with the real long-term problems that feed the budget deficit: rising health care costs, an aging population and a refusal by lawmakers to face the inescapable need to raise taxes at some point. Rather, it defers those critical issues, in hopes, we assume, that both the economy and the political environment will improve in the future.

That’s a nice–and a fair–assumption, one you won’t see the Times granting those nasty Republicans.

For the most part, Mr. Obama has managed to cut spending while preserving important [read vital] government duties. That approach is in stark contrast to Congressional Republicans, who are determined to cut spending deeply, no matter the consequences.

Again, Obama gets a pass. Not so the Republicans. And let’s see what important government duties Obama preserves.

A case in point: the Obama budget’s main cut — $400 billion over 10 years — is the result of a five-year freeze in nonsecurity discretionary programs, a slice of the budget that contains programs that are central to the quality of American lives, including education, environment and financial regulation.

Got that? Obama’s main cut is not a cut at all. It’s a five-year freeze for Hell’s sake!

But the cuts are not haphazard. The budget boosts education spending by 11 percent over one year and retains the current maximum level of college Pell grants — up to $5,500 a year. To offset some of the costs, the budget would eliminate Pell grants for summer school and let interest accrue during school on federal loans for graduate students, rather than starting the interest meter after graduation.

Cuts and boosts spending within spitting distance of each other. This is rich. And then another hall pass: “To offset some of the costs.” Some? Compare that with what the Times dishes out to the Republicans: “Republicans are determined not to raise any taxes . . .” And Obama is? Remember, he “offset some of the costs” of his changes in Pell grants, not by raising taxes, but by diddling with summer school and student loan interest.

The laugh track continues:

[Republicans refuse to raise taxes] even though investing spending for the future and taming the deficit are impossible without more money.(correction my doing)

Okay, having slapped Republicans up side the head about their refusal to raise taxes, the Times writes–immediately after, and I do mean immediately,

The budget would also increase transportation spending by $242 billion over 10 years. It does not specifically call for an increased gas tax to cover the new costs, though it calls on Congress to come up with new revenues to offset the new spending.

This is a truly cynical editorial about a truly cynical budget. The Republicans refuse to raise taxes, while Obama boldly goes where no man has gone before and passes the buck to Congress? Oh the humanity!

Remember that word vital? Here’s a whiff of what it means:

Republicans want to eliminate forward-looking programs like high-speed rail.

In other words, vital means boondoggle. Amtrack is doing so well, we just have to have a faster version of it.

I have to go, so let’s jump to the end:

Real deficit reduction will require grappling with rising health care costs and an aging population, which means reforms in Medicare, Medicaid and Social Security, as well as tax increases to bring revenues in line with obligations.

Mr. Obama’s budget does not directly address those big issues, but doing so would require a negotiating partner, and Mr. Obama, at present, does not have one among the Republican leaders in Congress. His latest budget is a good starting point for a discussion — and a budget deal — but only if Republicans are willing participants in the process.

Okay, as if to help me prove my point, the Times editorial ends the fact that Obama hasn’t proposed any tax increases either, he hasn’t addressed the big issues–either. Yet he gets a pat on the back, and the Republicans get chided for not wanting to cross the aisle and stand foursquare on his side. Quien es mas macho? Why Obama, of course.

Stop the Nuclear Diet

By , February 14, 2011 11:46 am

The nation’s nuclear energy diet has to end. These modular nuclear reactors and Obama’s promise of loan guarantees to the nuclear industry are two bites out what I hope is a very large apple.

Or as Someone Who’s Not Spinning Like a Top Would Say

By , February 14, 2011 8:09 am

E.J. Dionne of The Washington Post writes,

For President Obama, the battle lines will be drawn on investments in – or, as Republicans would say, spending on – education, energy, infrastructure and innovation, thus E2I2.

The Republicans have it about right.

It’s Keynes v. Hayek

By , February 11, 2011 10:09 pm

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