04/03/2012 archive

What would you say if someone asked you what the keys are to the Occupy Movement’s identity?  You might mention some of the slogans, like “We are the 99%,”  or perhaps their statements against corporate personhood or the actions of occupations of public spaces and the calls for economic justice and accountability for the banksters that caused the recent economic crash.  Those are among the hallmarks, but probably the biggest part of Occupy Wall Street’s identity is the General Assembly process.  

The general assembly process is what sets Occupy apart from any other movement going right now.  It is what defines the movement as a “horizontal movement” or a “leaderless movement;” that is, a movement whose ideals and actions are broadly agreed upon by the entirety of its membership.  It is what makes Occupy a (small d) democratic movement.

This consensus process is what Occupy stands for and wants to transmit, a process for creating a durable democratic infrastructure, a basis upon which useful, inclusive, democratic institutions can be built.

As it says in Occupy’s Statement of Autonomy”:

Occupy Wall Street is a people’s movement. It is party-less, leaderless, by the people and for the people. It is not a business, a political party, an advertising campaign or a brand.  It is not for sale.

We welcome all, who, in good faith, petition for a redress of grievances through non-violence.  We provide a forum for peaceful assembly of individuals to engage in participatory democracy. …

Any organization is welcome to support us with the knowledge that doing so will mean questioning your own institutional frameworks of work and hierarchy and integrating our principles into your modes of action. … Those seeking to capitalize on this movement or undermine it by appropriating its message or symbols are not a part of Occupy Wall Street.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Joe Nocera: Why People Hate the Banks

A few months ago, I was standing in a crowded elevator when Jamie Dimon, the chief executive of JPMorgan Chase, stepped in. When he saw me, he said in a voice loud enough for everyone to hear: “Why does The New York Times hate the banks?”

It’s not The New York Times, Mr. Dimon. It really isn’t. It’s the country that hates the banks these days. If you want to understand why, I would direct your attention to the bible of your industry, The American Banker. On Monday, it published the third part in its depressing – and infuriating – series on credit card debt collection practices.

Rep. Luis Gutierrez: The Stolen Dreams Act

Word is leaking from the Senate that Republicans, facing stiff and well-deserved opposition from most Hispanic voters, are crafting a bill similar to but not nearly as good as the DREAM Act, a bill to legalize the immigration status of young people who grew up in the United States but are currently undocumented immigrants.

Reports indicate that a proposal backed by Senator Marco Rubio of Florida, who opposes the DREAM Act, would allow certain young people to eventually earn legal status by attending certain four-year colleges or serving in the U.S. military. The proposal would bar these young people raised in the United States from ever becoming citizens. Similar restrictive or watered down proposals are said to be coming from Sens. Kay Bailey Hutchison of Texas and Jon Kyl of Arizona (both of whom have supported the DREAM Act before now opposing it). Let’s call them collectively the ‘Stolen Dreams’ Act.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

April 3 is the 93rd day of the year (94th in leap years) in the Gregorian calendar. There are 272 days remaining until the end of the year.

On this day in 1948, President Harry S.Truman signs Foreign Assistance Act.

President Harry S. Truman signs off on legislation establishing the Foreign Assistance Act of 1948, more popularly known as the Marshall Plan. The act eventually provided over $12 billion of assistance to aid in the economic recovery of Western Europe.

In the first years following the end of World War II, the economies of the various nations of Western Europe limped along. Unemployment was high, money was scarce, and homelessness and starvation were not unknown in the war-ravaged countries. U.S. policymakers considered the situation fraught with danger. In the developing Cold War era, some felt that economic privation in Western Europe made for a fertile breeding ground for communist propaganda.

The Marshall Plan (officially the European Recovery Program, ERP) was the large-scale economic program, 1947-1951, of the United States for rebuilding and creating a stronger economic foundation for the countries of Europe. The initiative was named after Secretary of State George Marshall and was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan. Marshall spoke of urgent need to help the European recovery in his address at Harvard University in June 1947.

The reconstruction plan, developed at a meeting of the participating European states, was established on June 5, 1947. It offered the same aid to the Soviet Union and its allies, but they did not accept it. The plan was in operation for four years beginning in April 1948. During that period some US $13 billion in economic and technical assistance were given to help the recovery of the European countries that had joined in the Organization for European Economic Co-operation. This $13 billion was in the context of a U.S. GDP of $258 billion in 1948, and was on top of $12 billion in American aid to Europe between the end of the war and the start of the Plan that is counted separately from the Marshall Plan.

The ERP addressed each of the obstacles to postwar recovery. The plan looked to the future, and did not focus on the destruction caused by the war. Much more important were efforts to modernize European industrial and business practices using high-efficiency American models, reduce artificial trade barriers, and instill a sense of hope and self-reliance.

By 1952 as the funding ended, the economy of every participant state had surpassed pre-war levels; for all Marshall Plan recipients, output in 1951 was 35% higher than in 1938.[8] Over the next two decades, Western Europe enjoyed unprecedented growth and prosperity, but economists are not sure what proportion was due directly to the ERP, what proportion indirectly, and how much would have happened without it. The Marshall Plan was one of the first elements of European integration, as it erased trade barriers and set up institutions to coordinate the economy on a continental level-that is, it stimulated the total political reconstruction of western Europe.

Belgian economic historian Herman Van der Wee concludes the Marshall Plan was a “great success”:

   “It gave a new impetus to reconstruction in Western Europe and made a decisive contribution to the renewal of the transport system, the modernization of industrial and agricultural equipment, the resumption of normal production, the raising of productivity, and the facilitating of intra-European trade.”

George Catlett Marshall (December 31, 1880 – October 16, 1959) was an American military leader, Chief of Staff of the Army, Secretary of State, and the third Secretary of Defense. Once noted as the “organizer of victory” by Winston Churchill for his leadership of the Allied victory in World War II, Marshall served as the United States Army Chief of Staff during the war and as the chief military adviser to President Franklin D. Roosevelt. As Secretary of State, his name was given to the Marshall Plan, for which he was awarded the Nobel Peace Prize in 1953.

Last week Congress passed the Jump Start Our Business Startups Act (pdf), the JOBS Act, which is set to be signed into law with much fanfare by President Obama despite the fact that it will in all probability create an explosion of financial fraud. The act rolls back many of the regulations that were passed under Sarbanes-Oxley in 2002. Professor of economics and law at the University of Missouri-Kansas City, Bill Black wrote an outstanding article for the New Economic Perspectives that was cross posted at naked capitalism, explaining with clarity how the jumpstart Obama’s Bucket Shops Act is just another in a long series of fraud-promoting legislation. He closed with this analysis:

We have trashed a regulatory system that was the envy of the world. It helped bring us prosperity, far greater economic stability, fewer and less severe recessions, and reduced income inequality. It made freer enterprise possible because the regulatory cops on the beat helped limit the Gresham’s dynamic in which bad ethics drives good ethics out of the marketplace. When frauds prosper honest businesses are among the victims. The three de’s have brought us recurrent, intensifying financial crises, the end of any material gains by the middle class, losses for the working class, the expansion of poverty and extreme inequality, and the domination of our political system by crony capitalism. Elite fraud and corruption are now common in America.

The entire article is a must read.

During a panel discussion on Up with Chris Hayes, Prof. Black and Alexis Goldstein of Occupy the SEC “educated” Democratic Representative Carolyn Maloney, who represents the the Upper East Side constituency of top Wall Street earners, on just how bad this bill is. As Yves Smith observes, “it is pretty hard to imagine that Carolyn Maloney would do anything that would seriously inconvenience her constituency”:

You need to watch the full segment to get the effect, but Maloney starts out by saying that the JOBS Act probably won’t create many jobs, but she was nevertheless getting complaints about how costly it was for “small” businesses to hire auditors (earth to base, if they are public, they would not qualify as “small” in most people’s book). Goldsmith devastates Maloney with her command of the bill, pointing out that it covers companies of up to $1 billion in revenues, that the tech companies its backers keep invoking have VC firms ready and willing to invest, and the new format well be used by PE firms flipping companies they had taken private back to public investors. By the end, Maloney is telling Goldsmith to send her suggestions for improved legislation and she’ll put it forward (I’ll believe her sincerity when I see action).

Yves is right, Alexis shreds Carolyn. Watch this segment, it is a thing of beauty.

Prof. Black also explains “stump & dump” scams and “cloud financing” that can cause devastating losses and won’t create any jobs.

Let me be the first to say it-

I.

was.

wrong.

And so we are left with 2 teams that I really couldn’t have less interest in- Kentucky and Kansas.  I don’t even know which one to hate more.

Still, when you embark on these long term sports projects you have to stick with them even when Lance Armstrong is out of the picture lest you brand yourself a mere partisan fan instead of a student of the game.

Semifinal Results-

Tonight’s Action-

Zap2it says coverage starts at 9 pm on CBS.

It would seem that there really are rational Republicans in elective office. Thank you to Louisiana Attorney General Buddy Caldwell who recognized that the Patient Protection and Affordable Care Act neither protects the patient or makes health care affordable. The only thing that will do that is single payer and that isn’t in the bill. Single payer health care spreads the cost of health care across the spectrum, covering everyone, and insures access to care from birth to death. So, AG Caldwell is suing the Obama Administration because he trusts the government more than the greedy, profit driven insurance companies.

ThinkProgress spoke with Louisiana Attorney General Buddy Caldwell outside the Supreme Court on Wednesday. Caldwell opposes Obamacare and the individual mandate, but for a different reason than most of his fellow litigants: it props up the private health insurance industry. “Insurance companies are the absolute worst people to handle this kind of business,” he declared. “I trust the government more than insurance companies.” Caldwell went on to endorse the idea of a single-payer health care system, saying it’d “be a whole lot better” than Obamacare:

   KEYES: You don’t think the subsidies for low-income people are going to be helpful?

   CALDWELL: No, no. The worst thing you can do is give it to an insurance company. I want to make my point. All insurance companies are controlled in their particular state. If you have a hurricane come up the east coast, the first one that’s going to leave you when they gotta pay too many claims is an insurance company. Insurance companies are the absolute worst people to handle this kind of business. I trust the government more than insurance companies. If the government wants to put forth a policy where they will pay for everything and you won’t have to go through an insurance policy, that’d be a whole lot better.

I don’t know about the rest of Mr. Caldwell’s politics but I wish there was a Democrat in the White House that agreed with him on this.