November 2013 archive

Punting the Pundits

“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”.

Wednesday is Ladies’ Day

Follow us on Twitter @StarsHollowGzt

Katrina vanden Heuvel: Oklahoma is schooling the nation on early education

In the richest country in the world, the poorest among us are children. [..]

What gets lost in the hype about K-12 education reform, and the unhealthy obsession with things like standardized tests and charter schools, are a child’s crucial early years. Research from Stanford University (pdf) shows that the gap in language proficiency between low-income and high-income children starts as early as 18 months and compounds over time as poorer children enter kindergarten less prepared than their wealthier peers and find it hard to catch up.

To stand idle in the face of these facts is to allow millions of children to fall behind in school before they even start. We can do better – and Oklahoma can show us how.

Heidi Moore: Reality check: Obamacare is not to blame for Walmart’s sluggish sales

Corporations love using Obamacare as a scapegoat for poor performance, even though the numbers don’t support that at all

The thing is, this search for a financial scapegoat is a pattern, the kind of fantasist imagining best dreamed up while the corporate jet – of which Walmart has 19 – sits idle on the tarmac.

Walmart, once a Wall Street darling, has spent all year exuding excuses for its disappointing financial performance in the same way that an isotope of uranium emits radiation. In January, Walmart’s bete noire was the payroll tax. In June, it was government uncertainty. In the fall, it was cuts to food stamps. This week, it’s Obamacare.

Two things Walmart has reliably avoided mentioning: that rivals like Costco and Family Dollar have been doing pretty well all year, which undermines all the conspiracy theories, and that Walmart has been struggling with its own divisive labor issues. One of those labor issues – its infamously low pay – has led some Walmart stories to start a food drive, asking workers to donate food to their own colleagues.

Zoë Carpenter: CEOs With Massive Retirement Fortunes Push Social Security Cuts

With budget negotiations on the horizon, a buzz is building around Social Security, from Elizabeth Warren and other Democrats calling for an expansion of benefits to The Washington Post arguing that seniors must be sacrificed for the good of the “poor young.”

Two of the biggest players in the debate are largely behind the scenes: Business Roundtable and Fix the Debt, corporate lobbies that use deficit fear-mongering to sell benefit cuts. These groups are made up of CEOs of America’s largest corporations-people with retirement accounts that are more than 1,000 times as large as those of the average Social Security beneficiary. [..]

Saving more is an increasingly unworkable solution for the millions of workers whose wages and benefits are being undercut by some of the same CEOs directing them to do so. As the report lays out, many of the most effective ways to strengthen Social Security involve asking more of executives, not employees. Eliminating the cap on wages subject to Social Security taxes (currently set at $113,700) would eliminate 95 percent of the projected shortfall for seventy-five years, according to the Congressional Research Service. That’s three times the deficit reduction achieved by raising the retirement age to 70. Subjecting stock-based compensation to Social Security taxes would raise billions more.

Michelle Chen: Chinatown: the next front in the gentrification war

Chinatowns across the US are being replaced by ‘development’. For those fighting back, it’s about civil rights not just culture

There will always be a little corner of the American public imagination reserved for Chinatown. Whether the word evokes for you the stereotypical mystique of opium dens and gambling halls, or the gritty restaurants and garment factories that fueled generations of working-class immigrant families, Chinatown, as a cultural idea, seems to endure through the generations as a place of wonder, chaos, and cultural hybridity. But the real, brick-and-mortar Chinatown is vanishing rapidly, as its people, traditions and cultural life are swept away by what some call “development”. [..]

While gentrification has invaded many low-income areas in New York, its impacts are perhaps most starkly apparent in this neighborhood, which began over a century ago as a ghetto for mostly male migrant laborers, and has over the past generation morphed into one of the city’s hottest real estate markets. That transformation has come at the expense of the people and institutions who have anchored generations of Chinese American heritage. As immigrant families are expelled through mass evictions and spiking rents, in their wake comes an onslaught of white young professionals, forming a hyper-commercialized cityscape that billionaire Mayor Michael Bloomberg has championed. Big property values, little character.

A recent study of three Chinatowns in Boston, New York City and Philadelphia starkly maps out gentrification’s effects in crowding out once tight-knit ethnic communities.

Ana Marie Cox: On healthcare, Obama is starting to sound like a misbehaving boyfriend

The GOP has popular opinion trending on on its side for the first time in years, and they will run this issue into the ground

Yesterday’s press conference saw Obama at his least compelling: the burdened genius mode, in which he shows clear frustration with others’ inability to follow his logic and shows little sympathy for those who don’t share his faith in his own vision.

In general, Obama’s personal reactions to the Affordable Care Act (ACA) rollout have resembled those of misbehaving boyfriend. “I’m sorry you feel that way” instead of a real apology and “I meant it when I said it” instead of an explanation.

Along those lines, the press conference was in many ways a master class in mansplaining. His arrogance peeled off another layer of cool, and he seemed genuinely surprised that the American people could seriously accused him of intentionally misleading the country:

Catherine Deveny: Sorry, but being a mother is not the most important job in the world

It’s time to drop the slogan. It encourages mothers to stay socially and financially hobbled, it alienates fathers and discourages other significant relationships between children and adults

Being a mother is not the most important job in the world. There, I said it. Nor is it the toughest job, despite what the 92% of people polled in Parents Magazine reckon.

For any woman who uses that line, consider this: if this is meant to exalt motherhood, then why is the line always used to sell toilet cleaner? And if being a mother is that important, why aren’t all the highly paid men with stellar careers not devoting their lives to raising children? After all, I never hear “being a father is the most important job in the world”.

The deification of mothers not only delegitimises the relationship fathers, neighbours, friends, grandparents, teachers and carers have with children, it also diminishes the immense worth and value of these relationships. How do gay dads feel about this line, I wonder? Or the single dads, stepdads or granddads? No matter how devoted and hard working you are, fellas, you’ll always be second best.

   

So you think this is not happening…

and hasn’t been happening right along?  Just a few “professional leftist” malcontents?

Bad policy is bad politics and “but the other guys are worse” only goes so far.

Obama hits new low with Dems

By Amie Parnes, The Hill

November 20, 2013, 06:00 am

President Obama’s relationship with congressional Democrats has worsened to an unprecedented low, Democratic aides say.

They are letting it be known that House and Senate Democrats are increasingly frustrated, bitter and angry with the White House over ObamaCare’s botched rollout, and that the president’s mea culpa in a news conference last week failed to soothe any ill will.

Sources who attended a meeting of House chiefs of staff on Monday say the room was seething with anger over the immense damage being done to the Democratic Party and talk was of scrapping rollout events for the Affordable Care Act.



“Is he even more unpopular than George W. Bush? I think that’s already happened,” said one Democratic chief of staff.



But as the healthcare problems continue to persist, lawmakers in swing districts aren’t sure that’s the best idea, especially because, according to one Democrat, “systemically you have what is a long-term problem.”

“It wouldn’t be helpful,” the Senate aide said. “Maybe he can help raise some money for Democrats, but that’s the extent of it.”

Democrats say the biggest favor Obama can do for them at the moment is to focus on untangling the web and trying to smooth out the glitches on healthcare.

“The only way he can really make it up to us is by fixing this s–t,” one Democratic House aide said.

Electoral victory my ass.

The Obamacare albatross for congressional Democrats

By Sean Sullivan, Washington Post

November 19 at 10:55 am

Nearly four in 10 voters (39 percent) say they would be more likely to oppose a candidate for Congress who supports the law. Just under a quarter (23 percent) say they would be more likely to support a candidate who backs the law, according to the survey. Thirty-six percent of voters say a candidate’s position on Obamacare would not make a difference in their vote.

The support/oppose gap is much wider than it’s ever been in Post-ABC polling, including four months before the 2010 midterm elections in which Republicans made historic gains. In that July 2010 poll, voters split, with 39 percent saying they would be more likely to support a candidate who backed health-care reform and 37 percent saying they were more likely to oppose. In July 2012, the support/oppose split was an even 28 percent among voters.

Obama Job Approval Drops To Lowest Point Ever, Quinnipiac University National Poll Finds; Health Care Act Won’t Improve Health Care, Voters Say

Quinnipiac University

November 12, 2013

American voters disapprove 54 – 39 percent of the job President Barack Obama is doing, his lowest approval rating in any Quinnipiac University national poll since he became president, as even women disapprove 51 – 40 percent, according to a national poll released today.

Today’s results compare to a slight 49 – 45 percent disapproval October 1. President Obama’s lowest score before today was a 55 – 41 percent disapproval in an October 6, 2011 survey by the independent Quinnipiac (KWIN-uh-pe-ack) University.

Today, disapproval is 58 – 37 percent among men, 91 – 6 percent among Republicans and 63 – 30 percent among independent voters. Democrats approve 79 – 14 percent. White voters disapprove 62 – 32 percent while black voters approve 75 – 15 percent and Hispanic voters disapprove by a slim 47 – 41 percent margin.

Voters in every income and age group disapprove of the job Obama is doing, with the biggest disapproval, 59 – 36 percent, among voters over 65 years old.

For the first time today, American voters say 52 – 44 percent that Obama is not honest and trustworthy. His previous lowest marks on honesty were May 30, when 49 percent of voters said he was honest and 47 percent said he wasn’t.

This is what Neo-Liberal policies get you, you “third way” centrists.  You are in the center of nothing except Beltway Bubbledom Village Courtier opinion bought and paid for by by your corporate masters.

On This Day In History November 20

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.

November 20 is the 324th day of the year (325th in leap years) in the Gregorian calendar. There are 41 days remaining until the end of the year.

On this day in 1945, Twenty-four high-ranking Nazis go on trial in Nuremberg, Germany, for atrocities committed during World War II.

The Nuremberg Trials were conducted by an international tribunal made up of representatives from the United States, the Soviet Union, France, and Great Britain. It was the first trial of its kind in history, and the defendants faced charges ranging from crimes against peace, to crimes of war, to crimes against humanity. Lord Justice Geoffrey Lawrence, the British member, presided over the proceedings, which lasted 10 months and consisted of 216 court sessions.

Origin

British War Cabinet documents, released on 2 January 2006, have shown that as early as December 1944, the Cabinet had discussed their policy for the punishment of the leading Nazis if captured. British Prime Minister Winston Churchill had then advocated a policy of summary execution in some circumstances, with the use of an Act of Attainder to circumvent legal obstacles, being dissuaded from this only by talks with US leaders later in the war. In late 1943, during the Tripartite Dinner Meeting at the Tehran Conference, the Soviet leader, Joseph Stalin, proposed executing 50,000-100,000 German staff officers. US President Franklin D. Roosevelt, joked that perhaps 49,000 would do. Churchill denounced the idea of “the cold blooded execution of soldiers who fought for their country.” However, he also stated that war criminals must pay for their crimes and that in accordance with the Moscow Document which he himself had written, they should be tried at the places where the crimes were committed. Churchill was vigorously opposed to executions “for political purposes.” According to the minutes of a Roosevelt-Stalin meeting during the Yalta Conference, on February 4, 1945, at the Livadia Palace, President Roosevelt “said that he had been very much struck by the extent of German destruction in the Crimea and therefore he was more bloodthirsty in regard to the Germans than he had been a year ago, and he hoped that Marshal Stalin would again propose a toast to the execution of 50,000 officers of the German Army.

US Treasury Secretary, Henry Morgenthau, Jr., suggested a plan for the total denazification of Germany; this was known as the Morgenthau Plan. The plan advocated the forced de-industrialisation of Germany. Roosevelt initially supported this plan, and managed to convince Churchill to support it in a less drastic form. Later, details were leaked to the public, generating widespread protest. Roosevelt, aware of strong public disapproval, abandoned the plan, but did not adopt an alternate position on the matter. The demise of the Morgenthau Plan created the need for an alternative method of dealing with the Nazi leadership. The plan for the “Trial of European War Criminals” was drafted by Secretary of War Henry L. Stimson and the War Department. Following Roosevelt’s death in April 1945, the new president, Harry S. Truman, gave strong approval for a judicial process. After a series of negotiations between Britain, the US, Soviet Union and France, details of the trial were worked out. The trials were set to commence on 20 November 1945, in the Bavarian city of Nuremberg.

While you are distracted by the ACA

In Afghanistan: ‘Security Deal’ Means US Occupation Forever

Sarah Lazare, staff writer Common Dreams

Published on Tuesday, November 19, 2013

Days before the so-called bi-lateral security agreement heads to an Afghan council of elders and political leaders for a final decision, the U.S. is attempting to force through a stipulation that would allow U.S. troops to continue raiding Afghan homes, in addition to measures giving U.S. troops and contractors immunity from Afghan law and extending U.S. military presence far beyond Obama’s 2014 pullout date.



The U.S. is pushing for the right to enter Afghan homes over the apparent objection of Afghan negotiators. “We believe it is not only the violation of the Afghan sovereignty, but also of the basic rights of the Afghan people,” said President Hamid Karzai’s spokesperson Aimal Faizi on Monday, referencing the U.S. demand to be allowed to enter Afghan homes.

This latest sticking point comes after attempts on the part of U.S. negotiators to ram through immunity for U.S. troops and independent contractors from Afghan law. According to (t)he Washington Post, the U.S. appears to have succeeded in including this immunity in an accord reached Saturday.



The Washington Post reports that a draft text of the agreement does not specify how many U.S. troops will be allowed to remain in Afghanistan, giving the U.S. unilateral power to determine this number. Furthermore, the document does not prohibit the U.S. from using Afghan territory to launch drone strikes against nearby Pakistan.

Leaked Draft Points To Endless War In Afghanistan

By: DSWright, Firedog Lake

Tuesday November 19, 2013 10:42 am

Despite constant public promises by President Obama and his administration that US forces were leaving Afghanistan in 2014 a draft of a US-Afghan security deal details plans for endless war in Afghanistan. Support for the war in Afghanistan is non-existent among the American public which rightly sees it as a waste of blood and treasure. The only ones benefiting at this point are opium dealers in Kabul and war profiteers in Washington.



This draft stands in stark contrast to public commitments Obama made to the American people wherein he declared “as our coalition agreed, by the end of 2014 the Afghans will be fully responsible for the security of their country.”



15,000 American troops indefinitely? That is the Afghans taking “full responsibility?” And how much will that cost since President Obama keeps searching for a Grand Bargain to cut even more spending on the backs of seniors and the poor. Currently the Afghanistan War is costing $1.7 billion a week – it’s the age of austerity for everything but pointless wars.

It is becoming increasingly obvious that the Obama Administration’s lack of imagination is only surpassed by its dishonesty. A war that is pointless even by American imperial standards will seemingly go on forever until strong enough opposition can be mustered here at home to stop this senseless killing and profligate spending.

The loya jirga which must ratify this agreement starts meeting on Thursday.  Hamid Karzai has indicated he will lobby in favor of immunity for US Troops and CIA and DOD Mercenaries but is unalterably opposed to allowing random home invasions.

Punting the Pundits

“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”.

Follow us on Twitter @StarsHollowGzt

New York Times Editorial Board: A New G.O.P. Excuse for Doing Nothing

With unrestrained glee, Republicans are using the calamitous debut of the Affordable Care Act as their latest justification for undermining all of health care reform. But they’re not stopping there. The Obama administration’s fumbling is apparently a good excuse for them to do nothing on immigration reform, on a budget agreement, and on any other initiative coming out of the White House. [..]

Their opportunistic theme is clear: If you can’t trust President Obama on this issue, how can you trust him on anything else? Unquestionably, the White House handed them this gift through two kinds of incompetence: the technical failure of the health-exchange website, and the political failure of the president in falsely promising that no one would lose an insurance policy they already had.

But just as these blunders are not the end of the health reform, they will also, in the end, not stop the long march to immigration reform, more jobs or desperately needed improvements to education, transportation and other fundamental functions.

Michael Klare: Are we witnessing the start of a global green revolution?

Mass environmental protests are gaining strength. If governments won’t take the lead on an imperiled planet, someone will

A week after the most powerful “super typhoon” ever recorded pummeled the Philippines, killing thousands in a single province, and three weeks after the northern Chinese city of Harbin suffered a devastating “airpocalypse“, suffocating the city with coal-plant pollution, government leaders beware!

Although individual events like these cannot be attributed with absolute certainty to increased fossil fuel use and climate change, they are the type of disasters that, scientists tell us, will become a pervasive part of life on a planet being transformed by the massive consumption of carbon-based fuels. If, as is now the case, governments across the planet back an extension of the carbon age and ever increasing reliance on “unconventional” fossil fuels like tar sands and shale gas, we should all expect trouble. In fact, we should expect mass upheavals leading to a green energy revolution.

Richard (RJ) Eskow: ‘Values, Not Just Math’: Why Elizabeth Warren’s Latest Speech Matters

This week Sen. Elizabeth Warren of Massachusetts gave an important speech on the floor of the United State Senate. Said Sen. Warren, “the conversation about retirement and Social Security benefits is not just a conversation about math. At its core, this is a conversation about our values.” Sen. Warren knows her values.

She knows her math, too. As co-author of The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke, Warren helped document a phenomenon which most Americans had observed but few had fully recognized: Typical two-earner middle-class families today can’t maintain the standard of living which single-earner middle-class households enjoyed in the 1950s and 1960s.

Why? Because real wages have fallen, mortgages are more expensive, education costs have skyrocketed, and out-of-pocket health care costs have risen dramatically for families with employer-based insurance.

Paul Rieckhoff: Who Will Stand With Military Sexual Assault Survivors When It Counts This Week

Serving in the U.S. military requires courage. Coming forward to describe surviving military sexual assault takes even more.

That is what thousands of survivors like those shown in the Academy Award-nominated film, The Invisible War have done. And for every survivor who is able to come forward, thousands are suffering in silence.

When the Department of Defense reported that there were an estimated 26,000 cases of unwanted sexual contact in the military in 2012, it was a massive wake-up call. It showed our military is being weakened from the inside. And this week, the issue has finally reached a tipping point. After 20 years of broken promises to end sexual assault in the military, one vote will determine whether or not Congress has the courage to strengthen the military justice system.

Wendall Potter: The Real Reasons Insurers Are Canceling Policies

Before Obama signed the Affordable Care Act, insurance companies already were making rapid progress in implementing their business plans of “migrating” their customers from traditional managed care plans to so-called “consumer-directed” plans, the industry euphemism for high-deductible policies. At the same time they’ve been requiring us to pay more out of our own pockets for care, they’ve also been implementing a strategy of reducing benefits. Investors and Wall Street financial analysts refer to these common industry practices as “benefit buydowns.” That’s another euphemism, by the way.

I myself — and thousands of my fellow Cigna employees — were notified several years ago, long before I left my job, that our HMOs and PPOs were being discontinued. Yep, we got notices in the mail. If we wanted to stay in a Cigna-subsidized health plan, we would have to switch to a high-deductible plan. The same thing has happened to tens of millions of other Americans in recent years.

Yet if you relied on the Washington media for your news and information about health care, you’d think that insurance companies would never have considered sending policy discontinuation notices to their policyholders until forced to do so by Obamacare.

The truth: they have always done this when profits were at stake.

Norman Solomon: The Obamacare Disaster and the Poison of Party Loyalty

Four years ago, countless Democratic leaders and allies pushed for passage of Barack Obama’s complex healthcare act while arguing that his entire presidency was at stake. The party hierarchy whipped the Congressional Progressive Caucus into line, while MoveOn and other loyal groups stayed in step along with many liberal pundits. [..]

It should now be painfully obvious that Obamacare’s little helpers, dutifully reciting White House talking points in 2009 and early 2010, were helping right-wing bogus populism to gather steam. Claiming that the Obama presidency would sink without signing into law its “landmark” healthcare bill, many a progressive worked to throw the president a rope; while ostensibly attached to a political life preserver, the rope was actually fastened to a huge deadweight anvil. [..]

With such disingenuous sales pitches four years ago, President Obama and his Democratic acolytes did a lot to create the current political mess engulfing Obamacare-exaggerating its virtues while pulling out the stops to normalize denial about its real drawbacks. That was a bad approach in 2009. It remains a bad approach today.

On This Day In History November 19

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.

November 19 is the 323rd day of the year (324th in leap years) in the Gregorian calendar. There are 42 days remaining until the end of the year.

On this day in 1863, President Abraham Lincoln delivers Gettysburg Address.

On November 19, 1863, at the dedication of a military cemetery at Gettysburg, Pennsylvania, during the American Civil War, President Abraham Lincoln delivers one of the most memorable speeches in American history. In just 272 words, Lincoln brilliantly and movingly reminded a war-weary public why the Union had to fight, and win, the Civil War.

The Battle of Gettysburg, fought some four months earlier, was the single bloodiest battle of the Civil War. Over the course of three days, more than 45,000 men were killed, injured, captured or went missing.  The battle also proved to be the turning point of the war: General Robert E. Lee’s defeat and retreat from Gettysburg marked the last Confederate invasion of Northern territory and the beginning of the Southern army’s ultimate decline.

Charged by Pennsylvania’s governor, Andrew Curtin, to care for the Gettysburg dead, an attorney named David Wills bought 17 acres of pasture to turn into a cemetery for the more than 7,500 who fell in battle. Wills invited Edward Everett, one of the most famous orators of the day, to deliver a speech at the cemetery’s dedication. Almost as an afterthought, Wills also sent a letter to Lincoln-just two weeks before the ceremony-requesting “a few appropriate remarks” to consecrate the grounds.

Text of Gettysburg Address

Four score and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal.

Now we are engaged in a great civil war, testing whether that nation, or any nation, so conceived and so dedicated, can long endure. We are met on a great battle-field of that war. We have come to dedicate a portion of that field, as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.

But, in a larger sense, we can not dedicate, we can not consecrate, we can not hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us-that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion-that we here highly resolve that these dead shall not have died in vain-that this nation, under God, shall have a new birth of freedom-and that government of the people, by the people, for the people, shall not perish from the earth.

A Green Alternative

Bill Moyers and Company: Fighting the Good Fight

Have you ever dreamed of quitting your day job to work on something you really believed in? That’s exactly what this week’s guests, Jill Stein and Margaret Flowers, did when they left their careers behind as medical doctors.

Both saw that holding political office largely depended on how much money you have, which in turn enabled injustices to be fashioned into law and public policy. Outraged and angry, they decided to stand up and take action.

“When people ask me ‘what kind of medicine are you practicing?’ I usually say, ‘I’m practicing political medicine because it’s the mother of all illnesses,'” Stein tells Bill. Flowers adds: “Once you start speaking truth to power and standing up for the right things, it’s very empowering.”

Stein and Flowers serve as the president and secretary of health, respectively, for the Green Shadow Cabinet, an organization offering alternative policies to the “dysfunctional government in Washington, DC.”



Transcript can be read here

Retirement in Crisis

Increasingly over the last few months the sensible people of congress have gotten on board with the idea that Social Security should be expanded. With the failure of many 401k’s and inadequate pension funds, many seniors and future retirees are more reliant on Social Security for a substantial part of their retirement plans. Senators Tom Harkin (D-Iowa), Bernie Sanders (I-Vt.), and Sherrod Brown (D-Ohio) have proposed that instead of switching to a “chained” consumer price index that cuts retiree benefits, the nation should adopt CPI-E, which measures the actual cost of living for the elderly and would raise benefits to meet actual needs.

The latest to voice support for this idea is Massachusetts Senator Elizabeth Warren who took to the Senate floor to criticize the Washington Post‘s editorial that said  called expanding Social Security “wrongheaded” and suggested the nation should instead be more concerned about the higher percentage of children living in poverty. Sen. Warren called this the “uglier side” of the debate on Social Security.

Floor Speech by Senator Elizabeth Warren (pdf)

The Retirement Crisis

November 18, 2013

As Prepared for Delivery

(Mr./Madame) President, I rise today to talk about the retirement crisis in this country – a crisis that has received far too little attention, and far too little response, from Washington.

I spent most of my career studying the economic pressures on middle class families – families who worked hard, who played by the rules, but who still found themselves hanging on by their fingernails. Starting in the 1970s, even as workers became more productive, their wages flattened out, while core expenses, things like housing and health care and sending a kid to college, just kept going up.

Working families didn’t ask for a bailout. They rolled up their sleeves and sent both parents into the workforce. But that meant higher childcare costs, a second car, and higher taxes. So they tightened their belts more, cutting spending wherever they could. Adjusted for inflation, families today spend less than they did a generation ago on food, clothing, furniture, appliances, and other flexible purchases. When that still wasn’t enough to cover rising costs, they took on debt credit card debt, college debt, debt just to pay for the necessities. As families became increase singly desperate, unscrupulous financial institutions were all too happy to chain them to financial products that got them into even more trouble — products where fine print and legalese covered up the true costs of credit. These trends are not new, and there have been warning signs for years about what is happening to our middle class. One major consequence of these increasing pressures on working people – a consequence that receives far too little attention – is that the dream of a secure retirement is slowly slipping away.

A generation ago, middle – class families were able to put away enough money during their working years to make it through their later years with dignity. On average, they saved about 11% of their take home pay while working. Many paid off their homes, got rid  of all their debts, and retired with strong pensions from their employers. And where pensions, savings, and investments fell short,

they could rely on Social Security to make up the difference. That was the story a generation ago, but since that time, the retirement landscape has shifted dramatically against our families. Among working families on the verge of retirement, about a third have no retirement savings of any kind, and another third have total savings that are less than their annual income. Many seniors have seen their housing wealth shrink as well. According to AARP, in 2012, one out of every seven older homeowners was paying down a mortgage that was higher than the value of their house.

While President Barack Obama and House Minority Leader Nancy Pelosi have expressed their support for cuts to Social Security as part of a budget agreement to trim the deficit, which Social Security does not contribute to, most Democrats wisely have said ruled that out in the current debate talks. We need to make sure that any cuts to the Social Security benefits of our most vulnerable citizens is taken off the table permanently.

 

Income Inequality: “Is a Very Serious Problem”

During her confirmation hearing before the Senate Banking Committee to replace Ben Bernanke as chair of the Federal Reserve, Janet Yellen took congress to task its roll in the growth income inequality and the threat it is to the economy.

Yellen reminded lawmakers of their sheer terribleness during a Senate Banking Committee hearing on Thursday about her nomination to replace Bernanke as chair of the Federal Reserve when his term ends in January. Republican senators moaned and groaned, as usual, about the Fed’s extreme easy-money policies. Yellen reminded everybody that Congress has forced the Fed to act by constantly imposing harsh austerity measures on an economy still recovering from a financial crisis and deep recession. [..]

This belt-tightening has probably cost the economy nearly 2.5 million jobs, according to a recent study by the Center For American Progress, a liberal think tank — one huge reason this has been the slowest job-market recovery since World War II. Economists on the right and left agree austerity has hurt economic growth, employment and consumer spending, with executives from Walmart and Cisco among the most recent capitalists to complain about it.

The sluggish recovery is also making income inequality worse, Yellen pointed out, depriving poor and middle-class Americans of more and better job opportunities.

This is a very serious problem, it’s not a new problem, it’s a problem that really goes back to the 1980s, in which we have seen a huge rise in income inequality… For many, many years the middle and those below the middle [have been] actually losing absolutely. And frankly a disproportionate share of the gains, it’s not that we haven’t had pretty strong productivity growth for much of this time in the country, but a disproportionate share of those gains have gone to the top ten percent and even the top one percent. So this is an extremely difficult and to my mind very worrisome problem. [..]

Fiscal policy has been working at cross purposes to monetary policy. I certainly recognize the importance of the objective of putting the US debt, deficit and debt, on a sustainable path… But some of the near-term reductions in spending that we have seen have certainly detracted from the momentum of the economy and from demand, making it harder for the fed to get the economy moving, making our task more difficult.

In many states, the recovery is making the income gap worse

By Niraj Chokshi, The Washington Post

For years, the wealthiest 1 percent have amassed income more quickly than the rest. From 1979 through 2007, for example, the top 1 percent of households saw income grow by 275 percent, according to a nonpartisan Congressional Budget Office study. Compare that to the bottom fifth of households, which saw income gains of only 18 percent over that time. Recent Nobel Prize winner for economics Robert Shiller, who is known for creating a closely tracked home-price index, last month called income inequality “the most important problem that we are facing now today.” And just last week, President Obama’s nominee to lead the Federal Reserve, Janet Yellen, called income inequality “an extremely difficult and to my mind very worrisome problem.”

Though rare, the recovery was strong and reduced inequality in some states, such as North Dakota, where an oil boom has provided a sustained economic boost. There, the number of households in the lowest half of income brackets shrank, while more joined the highest income brackets, a trend that suggests broad upward mobility. But in most states-and nationally-the data show the income gap worsening. In Michigan, for example, more than 65,000 households fell out of the middle-income brackets. That loss was counterbalanced by the addition of some 38,000 households, but only at the lowest and highest income levels.

That was true in many states: The number of middle-income households shrank while the number of low- and upper-income households grew. In many states, more upper-income households were added than lower-income ones-a positive economic sign not entirely unexpected during a recovery from such a severe downturn-but the middle class still shrank.

One of the “fixes” to close the income gap, create more and better jobs, and solve the Social Security fund problem is to raise the minimum wage to a livable wage. As Robert Reich explained in his recent column, if Walmart, the largest employer in America, were to “boost its wages, other employers of low-wage workers would have to follow suit in order to attract the employees they need”. He used Ford magnate, Henry Ford as an example of how that worked and made Ford a fortune.

Walmart is so huge that a wage boost at Walmart would ripple through the entire economy, putting more money in the pockets of low-wage workers. This would help boost the entire economy – including Walmart’s own sales. (This is also an argument for a substantial hike in the minimum wage.)

Now, states like New York and New Jersey and cities like Sea Tac, Washington are recognizing the need for a higher minimum wage to attract workers and business as it helps to improve the economy. There is overwhelming broad public support, with 58% of self identifying Republicans in favor. It’s time for Congress to wake up, end the sequester and austerity measures and raise the minimum wage.

The Henry Ford Boycott

What Walmart Could Learn from Henry Ford

Robert Reich

Saturday, November 16, 2013

Walmart just reported shrinking sales for a third straight quarter. What’s going on? Explained William S. Simon, the CEO of Walmart, referring to the company’s customers, “their income is going down while food costs are not. Gas and energy prices, while they’re abating, I think they’re still eating up a big piece of the customer’s budget.”

Walmart’s CEO gets it. Most of Walmart’s customers are still in the Great Recession, grappling with stagnant or declining pay. So, naturally, Walmart’s sales are dropping.



Walmart could learn a thing or two from Henry Ford, who almost exactly a century ago decided to pay his workers three times the typical factory wage at the time. The Wall Street Journal called Ford a traitor to his class but he proved to be a cunning businessman.

Ford’s decision helped boost factory wages across the board – enabling so many working people to buy Model Ts that Ford’s revenues soared far ahead of his increased payrolls, and he made a fortune.

So why can’t Walmart learn from Ford? Because Walmart’s business model is static, depending on cheap labor rather than increased sales, and it doesn’t account for Walmart’s impact on the rest of the economy.

You can help teach Walmart how much power its consumers have: Stand with its workers who deserve a raise, and boycott Walmart on the most important sales day of the year, November 29.

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