Category Archives: Uncategorized

Instruments

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2011%2F01%2Finstruments.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

The money that we possess is the instrument of liberty, that which we lack and strive to obtain is the instrument of slavery.

— J. J. Rousseau, Confessions (1770)

In this week’s Sift:

  • Storming Sacramento, Austin, Albany … The same anti-government spending rhetoric that sent Tea Partiers marching against Washington also has them revolting against the “wasteful” spending of their state governments. But will the public see through the rhetoric when schools and libraries close — not just in blue California but in red Texas as well?
  • Sarah Palin’s Persecution Fantasy. With references to “blood libel” and “pogroms”, conservatives paint themselves as victims of persecution comparable to Jews under the Czar. Maybe they’ve pushed it too far this time. Meanwhile, potential victims of media-inspired violence have developed a term to describe the threat they face: stochastic terrorism.
  • Short Notes. Your church contributions may not make it to God. McCain states have more gun violence than Obama states. More on Second Amendment solutions. Sean Hannity claims Kuwait’s oil. An El Paso “traditional family values” organization learns the importance of legal expertise. Illegal foreclosures. And the difficult conundrums of superhero law.


Storming Sacramento, Austin, Albany …

Recessions hit the states with a double whammy: Just as the number of people in need of state services goes up, revenues go down. And unlike the federal government, most states have legal restrictions on deficit spending. Last year, one-time-only accounting tricks (Arizona did a $735 million sale-and-leaseback agreement with its real estate, including the state capitol) and the federal stimulus (which included $165 billion in aid to the states) masked the problem. Basically, the federal government ran the deficit the states weren’t allowed to run.

Now, as the stimulus money runs out, the economy is showing a few signs of bouncing back, but mostly for the relatively well-to-do. Even as the stock market rises into territory it hasn’t seen for years, the unemployment and poverty rates — and the consequent need for state programs — remain high.

So budget problems are hitting the states hard now. The easy cuts have already been made, but huge deficits remain. And (despite Republican rhetoric favoring the states over the federal government), the Republican victory in November means that new aid to the states isn’t going to come from Washington.

Within the states, the Tea Party denunciations of Washington have been reworded to attack Sacramento, Albany, Austin, and all the other state capitals. In state after state, a game of chicken is going on: How many of the poor and helpless have to suffer and even die, how far are we willing to cut education, how close does the state have to come to declaring bankruptcy, before new taxes can be approved?

(This game may go further than I thought. Saturday, conservative pundits Dick Morris and Eileen McGann posted a column proposing a state bankruptcy process that would allow states to break their union contracts the way that bankrupt corporations do. It’s interesting how the Right regards contracts as sacred — unless the contracts protect workers.)

Texas. Everybody talks about the budget problems in liberal states like California and New York, but things are just as bad in conservative strongholds like Texas, Nevada, Arizona, and Mississippi. Business Insider notes the Texas-sized hole in Texas’ finances — they’re looking at a $25 billion deficit in a $95 billion two-year budget — and then comments:

So why haven’t we heard more about Texas, one of the most important economies in America? Well, it’s because it doesn’t fit the script. It’s a pro-business, lean-spending, no-union state. You can’t fit it into a nice storyline, so it’s ignored.

Illinois. Friday Illinois managed to raise taxes in response to the current crisis. The income tax rate went up from 3% to 5%. Prior to the increase, Illinois was looking at a $15 billion deficit. Democratic state rep Michael Zalewski justified the tax increase like this:

Since I’ve been elected in 2008, I have voted for every cut, every reform bill and the fact is there is no more money left and we can’t pay the people we owe money to.

California. California is facing the biggest deficit, in the $20-25 billion range. New Governor Jerry Brown has put forward a budget in which

the state’s welfare program is cut in half, $1 billion is trimmed from its universities, and tens of thousands of elderly and disabled residents lose access to care at home.

On the revenue side, he wants the voters to approve the extension of temporary taxes otherwise due to expire.

California’s problems have been due as much to politics as economics. In previous years, the legislature had to pass its budget with a 2/3 supermajority, which gave the Republican minority the ability to block attempts to raise revenue, even when the Republican governor (Schwarzenegger) asked them to. Brown is aided by a newly-passed ballot initiative that lets a mere majority pass a budget.

Local governments. The clearest evidence of the depths of the education-funding problem comes from Detroit. Last Monday, the Detroit Public Schools filed a plan to close half of their schools in two years, and increase the average high school class size to 62 from 35 now. Middle school class size would increase from 35 to 47. Matt Yglesias comments:

obviously this is death spiral stuff—the more the city pares back, the more the people with means and opportunity will leave and the worse things will become.

In all these state and local governments, the debate resembles the national debate: Conservative rhetoric says that the budget is full of wasteful spending, but is careful not to identify anything specific. When cuts arrive, they are not “waste” by any means. Real services to real people are eliminated or cut back.

It will be interesting to see if people catch on when the cuts are closer to home. On the national level, keeping taxes low for the wealthy means we have the abstract problem of a budget deficit. But on the state and local level, low taxes may mean closing the local library, sending your child to an over-crowded and poorly maintained school, driving over potholes, or even watching people die for lack of medical care.

I think they will catch on. Like the children of misers, at some point Americans will start to resent living as if our country were poor, when in fact it is rich. Unlike Botswana or Bangladesh, America can afford to have smooth roads and good schools. We can afford to take care of our sick and give pensions to our elders. We can afford to have safe communities and clean, reliable transportation systems. And we can afford to pay a living wage to the public employees who provide these services. The only question is whether we can raise enough faith in ourselves and our democracy to do so.



Sarah Palin’s Persecution Fantasy

Like most reasonable people, I was taken aback that Sarah Palin would use the term blood libel to describe the claim that heated political rhetoric from people like her makes political shootings more likely. How ridiculous, I thought, to compare criticism of Palin’s rhetoric to the outlandish claims that led to pogroms against Jews in Europe. (The Washington Times, by contrast, felt that Palin was “well within her rights to feel persecuted” and called the incident “the latest round of an ongoing pogrom against conservative thinkers.” It is, I think, a very strange kind of persecution that gives you your own TV show, pays you millions of dollars, and requires only that you submit to some toothless criticism in the media. It’s a far cry from the Jewish experience in 19th century Ukraine, or even Fiddler on the Roof.)

Having watched the video and read the text of Palin’s statement, though, I found it more boring than incendiary, so I wound up concluding that she just didn’t know what blood libel means. It’s ignorance, not bomb-throwing. Probably she used the term because it had been ricocheting around in conservative circles for several days.

Another bizarre notion in Palin’s statement (which also is widespread in conservative circles) is the idea that individual and social responsibility are mutually exclusive:

President Reagan said, “We must reject the idea that every time a law’s broken, society is guilty rather than the lawbreaker. It is time to restore the American precept that each individual is accountable for his actions.”

It didn’t make any sense when Reagan said it, and it still doesn’t. If violent rhetoric or the prevalence of guns raises the likelihood of events like the Tucson shooting, how does that let Loughner off the hook? The Right understands this perfectly well in regard to terrorism: They can denounce the rhetoric of radical imams without letting suicide bombers off the hook. Individual and social responsibility are two different dimensions of an event, not an either-or choice.

And Palin herself says that the “blood libel” put forward by her critics “serves only to incite the very hatred and violence they purport to condemn.” So Palin understands how the words of her critics can cause violence, but not how hers can.

The technical term for this mindset — that the world works differently for you than for everybody else — is narcissism, but that’s too academic for the average person. If only there were a non-sexist way to say “drama queen”.


Slate’s William Saletan spins the tea-party/Muslim analogy in a different direction:

That’s what Palin believes. Each person is solely accountable for his actions. Acts of monstrous criminality “begin and end with the criminals who commit them.” It’s wrong to hold others of the same nationality, ethnicity, or religion “collectively” responsible for mass murders.

Unless, of course, you’re talking about Muslims. In that case, Palin is fine with collective blame.

How else can we account for her opposition to the Ground Zero Mosque?

“Blood libel,” as defined by The Concise Oxford Dictionary of World Religions, is historically targeted not at a country but at a religion. Palin’s campaign against any Muslim house of worship near Ground Zero, based on group blame for terrorism, fits that definition more closely than does any current accusation against the Tea Party.


There’s now a term to describe those who use the media to stir up crazy people to do their dirty work for them: stochastic terrorism. Daily Kos’ G2geek defines:

Stochastic terrorism is the use of mass communications to stir up random lone wolves to carry out violent or terrorist acts that are statistically predictable but individually unpredictable.

Palin’s crosshair graphic is not actually a good example of this (the Palin-Loughner connection is too tenuous), but Glenn Beck’s crusade against the Tides Foundation is. Hardly anyone had heard of the Tides Foundation when Beck started slandering it in May 2009. Media Matters found 29 separate shows between then and July 14, 2010 where Beck attacked Tides, demonizing it as part of some imaginary George-Soros-funded effort to take over America.

On July 18, 2010 Byron Williams was pulled over by police and opened fire on them. He was heavily armed and said he wanted to “to start a revolution by traveling to San Francisco and killing people of importance at the Tides Foundation.” Only his inability to drive there without drawing police attention prevented him from having a body count like Jared Loughner’s.


As a follow-up to last week’s article on political correctness, let’s consider the would-be defenders of the white race who want you to boycott Marvel’s upcoming Thor movie because the Norse god Heimdall is being played by a black actor, the excellent Idris Elba (recently seen as the star of BBC’s “Luther”).

Where to start with these people? Did you thinkMarvel’s Thor comics had given an accurate account of Norse mythology up to now? Does a pop-culture misrepresentation of a second-tier god like Heimdall cramp your style religiously? When was the last time you worshipped Heimdall, anyway?

Fundamentally, this is another attempt to equate slights against whites with superficially similar slights against other races, and so support the idea that whites suffer persecution too. But there is no comparison. No anti-white stereotype is being supported or reinforced. No whites will be discriminated against because of some unconscious social conviction that divinity must be black. The persecution occurs entirely in fantasy.



Short Notes

Richard Florida and Charlotta Mellander ran the numbers on shooting deaths and found no positive correlation with the number of drug users, illegal immigrants, or a lot of other alleged explanations. But they did find this:

Taking the voting patterns from the 2008 presidential election, we found a striking pattern: Firearm-related deaths were positively associated with states that voted for McCain (.66) and negatively associated with states that voted for Obama (-.66). Though this association is likely to infuriate many people, the statistics are unmistakable. Partisan affiliations alone cannot explain them; most likely they stem from two broader, underlying factors – the economic and employment makeup of the states and their policies toward guns and gun ownership.

As I’ve explained many times in the Sift, correlation is not the same as cause-and-effect. So it would be irrational to jump to the conclusion that we could save lives by getting more states to vote Democratic in 2012. It seems worth a try, though.


The new head of the Republican National Committee is Reince Priebus. I just heard someone describe him as “a name straight out of Hogwarts”. As Sharoney observed, the consonants in his name spell out RNC PR BS.


As she so often does, Digby avoids the distractions and gets to the important point:

The real problem, in my view, is that there is a subset of Americans who believe that government is illegitimate if their chosen leaders aren’t elected. They simply don’t believe in democracy.

That’s what I see in all this talk about “Second Amendment solutions“. Yes, at least some of the Founders did want the people to retain the means of revolution if democracy failed. But the failing they had in mind is what you see in faux-democratic countries like Egypt or Iran, where the government can close opposition newspapers, arrest opposition candidates, and stuff the ballot box when things get tense for them.

But Tea Party folks started talking about assassination and armed insurrection just because Republicans lost and Democrats started implementing the platform they ran on. The electoral system was working fine, it just got the “wrong” answer. Resorting to guns in that situation is the exact opposite of what the Founders had in mind.


Shepard Fairey’s “Second Amendment Solutions” poster says: “It’s not the bullet with my name on it that worries me. It’s the one that says ‘to whom it may concern’.”


According to Sean Hannity, Kuwait and Iraq should be paying us for their liberation by providing cheap energy. And if they don’t see it that way,

We have every right to go in there and, frankly, take all their oil.

Apparently we just loaned these countries their freedom, and if they miss a payment we can foreclose.


Once in a while, the Religious Right gets burned by its disdain for intelligence and expertise. Take El Paso, for example. An anti-gay group called El Paso for Traditional Family Values wanted to make sure that same-sex partners of city employees couldn’t get benefits, so they got voters to pass a ballot initiative saying so — or so they thought. Local station KVIA reports:

The ordinance drafted by EPFTFV asked voters to ‘endorse traditional family values’ by extending health insurance only to city employees, their spouses and dependent children. That left out a lot of people the city already covered, including elected officials, retirees, grandchildren, and affiliated contractors – those are agencies formed by City Council, like the Public Service Board and the Transportation Board. …

The city maintains it must implement the ordinance using its plain language, which excludes hundreds of people. City Rep. Steve Ortega and Mayor John Cook have said they told EPFTFV leaders to hire an attorney to draft the ordinance. The organization did not do that.

Oops.

A federal judge has issued a temporary injunction that keeps the law from taking effect until he can rule on a suit challenging its constitutionality.  Among other things, plaintiffs are charging that the law is too vague to be enforceable:

The Judge asked all three lawyers to provide a legal definition of ‘traditional family values’ that could be found in state or federal law, statute or jurisprudence. None of them could.

Damn those meddling federal judges and their definitions and constitutions and other legalistic claptrap. Can’t they just let the Holy Spirit speak through them?


TPM recalls some of the more egregious recent political rhetoric suggesting violence or using violent metaphors.


Salon’s Glenn LaFantasie points out that, although we always treat political shootings as one-of-a-kind exceptions to our democratic process, in fact they are part of a longstanding pattern in our politics.

American political violence is a direct legacy of the American Revolution, for the patriots’ victory in that conflict proved to the American people that violence could achieve a positive end: independence and the creation of a new nation. It is a troubling, but inescapable, bequest that stems from the fact that our nation was born in violence, and it derives from the reality that violence has ever since become not only the device of criminals, but also of government and those who disagree with the government.


The NYT reports:

in the grand Venn diagram of life, there appears to be substantial overlap between lawyers and the people Mr. Daily lovingly refers to as “comic book nerds.”

The result is a blog. Law and the Multiverse: Superheroes, supervillains, and the law.

I mean, there are important issues to work out: How much responsibility do you have for the damage done by your super-powered minor child?What kind of retirement plan does an immortal need? Is there any way Bruce Wayne could openly fund Batman without becoming legally responsible for the damage he does? Is mind control a valid criminal defense?

Don’t wait until a radioactive spider bites you and it’s too late. Learn your rights now.


Tea Partiers aren’t racists, of course. But when they get into office in places like Raleigh, North Carolina their first acts include undoing the longstanding school-desegregation plan, and replacing it with … well, nothing really. Maybe separate-but-equal will work this time around.


It should be no great surprise that the same bankers who loaned money to people who had no hope of paying it back also failed to handle the mortgage paperwork correctly. The result is that the Massachusetts Supreme Judicial Court now holds that huge numbers of foreclosures were illegal.

The Boston Globe’s Paul McMorrow reports on the implications:

I took a random sample of 30 foreclosure deeds from Chelsea (one of the cities hit hardest by foreclosures) since the beginning of 2006. Of those 30 foreclosure cases, 10 had paperwork on file with the Registry of Deeds that raised the sort of chain-of-custody concerns at the heart of the Ibanez decision. In one case, no mortgage was on file with the registry. Another showed no paperwork assigning the note to a mortgage servicer. In other cases, mortgage originators didn’t sign off on documents transferring the notes into mortgage pools, or transfer paperwork was filed after a foreclosure occurred. All of the properties have since been re-sold.

What could possibly go wrong?

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or keep track of the Sift by following the Sift’s Facebook page.

Consequences

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2011%2F02%2Fconsequences.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

If this Congress keeps going the way it is, people are really looking toward those Second Amendment remedies and saying, “My goodness what can we do to turn this country around?” I’ll tell you the first thing we need to do is take Harry Reid out. — Reid’s Republican opponent Sharron Angle (January, 2010)

We’re on Sarah Palin’s targeted list. But the thing is that the way that she has it depicted has the crosshairs of a gunsight over our district. When people do that, they’ve gotta realize there’s consequences to that action. Rep. Gabrielle Giffords (March, 2010)

In this week’s Sift:

  • The Rhetoric and Reality of Violence. The shooting of Rep. Giffords calls attention to the sanctioning of violent rhetoric by officials at all levels of the Republican Party.
  • Privilege, Political Correctness, and the New Huck Finn. A bowdlerized new version of the Mark Twain classic gives me a hook to fix conservative rhetoric about political correctness.
  • Scalia’s Law. Nobody should be shocked when Justice Scalia denies that the Constitution protects women’s rights. All originalists believe that. Their theory needs to be attacked head-on, not issue-by-issue.
  • Look for a double helping of Short Notes next week.


The Rhetoric and Reality of Violence

As of this morning, no one had pinpointed a clear motive for Jared Loughner to shoot Rep. Gabrielle Giffords and 19 other people, six of whom have died, including federal judge John Roll. No one has released a political manifesto, like the one Jim David Adkisson wrote before killing two people at a Knoxville church in 2008. (He claimed to be inspired by Bernard Goldberg’s culture-war book 100 People Who Are Screwing Up America.) Or like Scott Roeder, the anti-abortion crusader who murdered George Tiller (also in church) in 2009. Or white supremacist James Von Brunn, who killed a security guard at the Holocaust Museum in 2009. Or anti-tax activist Joe Stack, who crashed an airplane into an IRS office building in Austin in 2010, killing Vernon Hunter.

Loughner appears to be insane to the point that his specific motives, if they ever come out, might be hard to understand. As the NYT editorialized:

It is facile and mistaken to attribute this particular madman’s act directly to Republicans or Tea Party members. But it is legitimate to hold Republicans and particularly their most virulent supporters in the media responsible for the gale of anger that has produced the vast majority of these threats, setting the nation on edge.

As they always do, right-wingers are claiming that both sides are equally responsible. And of course they can point to signs threatening President Bush and so forth.

DSC_0033_sm.jpg

What they can’t produce, though, is any equivalent of the Sharron Angle quote at the top of the page. No Democratic candidate for a major office so directly called for the assassination of an opponent. And that was not a mis-step; Angle stuck by it:

What is a little bit disconcerting and concerning is the inability for sporting goods stores to keep ammunition in stock. That tells me the nation is arming. What are they arming for if it isn’t that they are so distrustful of their government? They’re afraid they’ll have to fight for their liberty in more Second Amendment kinds of ways? That’s why I look at this as almost an imperative. If we don’t win at the ballot box, what will be the next step?

What indeed? In the Democratic Party, you stand down and start working to win the next election. But within the Republican Party, Angle suffered no consequences for suggesting violence instead. Her statements were not condemned by the leadership, she continued to get funding from national Republican organizations, and big-name Republicans continued to endorse her and campaign for her, causing Rachel Maddow to ask:

Is this considered a mainstream position now? Everybody down with this idea? RNSC, RNC, are you guys okay with this?

Apparently they were and are. At the highest levels of the Republican Party, calling for violence is considered acceptable political rhetoric. In the Democratic Party, it isn’t.

There are and always will be nutcases on both ends of the political spectrum. And there will always be ordinary people of all stripes who blow off steam by making meaningless threats. But one party welcomes and stokes that rhetoric, while the other party doesn’t.

That’s the difference.


I’ve been on this story for a while: here and here, for example.


Check out this more complete list of recent incidents. Not all of them are conservative-on-liberal. But the vast majority are.



Privilege, Political Correctness, and the New Huck Finn

As soon as I finished How to Speak Conservative: Class warfare, I planned to follow up with a comparable explanation of political correctness. But PC is a little more complicated, so that article kept failing to come together and then getting crowded out by other topics.

This week I got my hook: There’s a new edition of Adventures of Huckleberry Finn that changes the word nigger to slave. It’s paired with a new edition of The Adventures of Tom Sawyer that changes Injun Joe to Indian Joe.

I imagine that the editor of this travesty believes he’s being a good liberal, but in fact he’s being a conservative’s parody of a liberal. The conservative assault has been so successful that few people even remember the real liberalism behind the parody and what it has been trying to accomplish.

Let’s start with the parody, because it is so much more familiar. As conservatives tell the story, groups that (for only semi-comprehensible reasons) consider themselves to be oppressed — blacks, women, gays, and some others — are sensitive to words like nigger, bitch, and fag. The words — not the people who use the words or the hostile intentions the words embody, but the words themselves — offend sensitive feelings. Liberals care much more about feelings than about liberty, so they want to ban the words.

This creates absurd situations (similar to the stoning scene in Monty Python’s Life of Brian or the porch monkey scene in Clerks 2), and allows conservatives like Rush Limbaugh or Ann Coulter to look brave and edgy by using or hinting at the banned words. Rush and Ann become like the Kevin Bacon character in Footloose, breaking the stupid rules that keep people from having fun.

Start over. Now let’s put the conservative parody out of our minds and start over from the absolute beginning. Why, exactly, shouldn’t we say nigger?

The serious problem isn’t that the word nigger hurts blacks’ feelings. What conservatives implicitly deny by focusing on feelings is that blacks are harmed in a very real sticks-and-stones sense by white privilege. White privilege is justified by a negative stereotype of blacks. (We are deserving because they are undeserving.) And the word nigger can be used to invoke and solidify that stereotype.

Now let’s go through that a little slower and include some other words.

It starts with privilege. When you boil privilege down to its essence, it amounts to this: If you’re privileged, society grants you an exemption from the Golden Rule. You have the right to be outraged if you are not treated with a certain respect, but when others are denied the same respect, that’s not your problem. You don’t even have to think about it. It’s just the way things are.

So, you can use a public bus, but a person in a wheelchair can’t; you and your lover can get married, but a same-sex couple can’t; a taxi will stop for you, but not for a person of color; public information is displayed in your language, but not somebody else’s; police look at your skin and your clothes and decide to hassle somebody else, not you; public officials listen to your complaints, but not to other people’s; all over the world, miners and factory workers risk their lives to produce things for you, but you don’t have to risk your life for anybody; when someone who looks like you gets an undeserved promotion, everyone takes it in stride, but if someone who looks different from you does, it’s an issue.

That’s privilege. Don’t think about it. You didn’t do it; it’s just the way things are. If you do think about it, that’s so magnanimous of you, to consider granting other people the benefits you enjoy without controversy. Even if you ultimately shake your head and decide that it’s too expensive or society isn’t ready yet, you’re such a great person even to consider it.

Some Golden-Rule exemptions are less passive. You can insult people who don’t dare insult you back. You can expect to be waited on, and not wait on anyone else. You can spread malicious gossip about other people, knowing that your lies propagate easily and quickly, while their lies about you die out.

So the first reason to avoid calling someone a nigger or a fag is that there is nothing they can call you back. (Honky? Cracker? Don’t be silly. They don’t sting the same way. And I can’t even think of derogatory term for heterosexuals.) You are doing unto others something that can’t be done back to you.

It’s the stereotypes, not the words. The reason words like nigger sting is that they refer to detailed stereotypes built up over centuries, stereotypes made up not just of words, but of entire stories and images. So nigger doesn’t just mean black, it means lazy, shiftless, stupid, thieving, slutty, drunken, apelike, and more. (That’s why there’s no comparison between liberals who nicknamed President Bush “Chimpy” and conservatives who marketed the Obama Monkey. “Chimpy” insults Bush exactly to the extent that he personally resembles a chimp. There’s no anti-white or anti-anything-Bushlike stereotype for “Chimpy” to evoke.)

A stereotype also contains judgments: A nigger doesn’t really count as a person — as Mark Twain made explicit in this exchange between Huck and Aunt Sally:

”It warn’t the grounding — that didn’t keep us back but a little. We blowed out a cylinder-head.”

“Good gracious! anybody hurt?”

“No’m. Killed a nigger.”

“Well, it’s lucky; because sometimes people do get hurt.”

That’s how stereotypes hold a system of privilege in place. A nigger, fag, or bitch is someone to whom the Golden Rule doesn’t apply. You can’t beat up a person who hasn’t done anything to you, but you can beat up a fag — they don’t count. If you steal from one of those money-grubbing kikes, you’re just taking back something they cheated from somebody else. If you slap a bitch around, she was asking for it — you know how they are. You don’t have to make a specific case against the individual; the case was already made long ago against fags, kikes, and bitches in general.

So the larger point of getting rid of words like nigger is to remove access to the stereotypes they evoke. When the privileged have to refer to other people respectfully (the way they naturally expect other people to refer to them), then the judgments that are implicit in the stereotypes have to be either dropped or explicitly defended. If you’re hitting a person, and not a fag or a bitch, you’d better explain yourself. If a young black lawyer (not a buck or a nigger) has applied to your law firm, you need a reason to turn him down. It doesn’t go without saying any more. It’s not just how things are.

Whitewashing history. You have undoubtedly noticed that in this article I have used all sorts of “bad” words. That’s because I wanted to evoke the stereotypes. I wanted to evoke them so that we could look at them.

If we banish the words entirely, we lose our handle on the stereotypes; we lose our ability to critique them or diagnose them properly. And if we banish them from our literature, it’s as if the whole history of oppression never happened.

A few years ago on Daily Kos, I started a discussion about the whitewashing of recent history. Some younger Kossacks were shocked to discover that “Eenie, Meenie, Minie, Moe” used to say nigger rather than tiger. How would they have known? The older rhyme has just vanished, as if none of us ever said it.

Whites aren’t doing this to diminish the anti-black stereotype. We’re doing it to cover our tracks. The history of racial oppression embarrasses us, so we make it nicer.

Here’s my conclusion: When you’re wondering whether to use a racial slur or some bowdlerized version like the N-word, ask yourself: Am I using the power of the stereotype against the oppressed group, or am I calling out the stereotype to diminish it or to own up to my own role in maintaining it?

If it’s the former, back off. If it’s the later, go ahead and say the word. Otherwise, the only person you’re protecting is yourself.

Huck. One of the many reasonsHuck Finn is a great book is that it accurately documents an era. The world of Huck Finn is not a nice place, just like the worlds of Night and Fog or The Sopranos are not nice places. We can’t make them nice without destroying them. Students who aren’t mature enough to go there shouldn’t go there.



Scalia’s Law

Justice Scalia raised a predictable furor with an interview he gave to California Lawyer magazine. But anyone who was shocked to hear a Supreme Court justice deny any constitutional basis for women’s rights hasn’t been paying attention. Scalia quotes like this are nothing new:

Certainly the Constitution does not require discrimination on the basis of sex. The only issue is whether it prohibits it. It doesn’t. Nobody ever thought that that’s what it meant. Nobody ever voted for that.

Scalia says these things because he subscribes to the theory of law known as originalism, which he describes in the interview like this:

In its most important aspects, the Constitution tells the current society that it cannot do [whatever] it wants to do. It is a decision that the society has made that in order to take certain actions, you need the extraordinary effort that it takes to amend the Constitution.

To an originalist, the meaning of any phrase in the Constitution was frozen at the time it was written. If you want something else to be constitutional, you need to pass an amendment — which will then mean for all time what you think it means today.

If you want to argue with someone like Scalia, you need to argue with originalism, not just with the idea that women shouldn’t have constitutional rights. The point of the law is to be legal, not necessarily moral. (“This is a court of law, young man,” legendary Justice Oliver Wendall Holmes is said to have scolded an idealistic young lawyer, “not a court of justice.”) So you need more than moral outrage; you need an alternate interpretation.

I’ve highlighted non-originalist legal viewpoints twice in the previous year: in my review of David Strauss’ book The Living Constitution and in excerpts from Justice Souter’s commencement address at Harvard Law School.

Let’s apply that thinking here. The relevant portion of 14th Amendment says:

No State shall … deny to any person within its jurisdiction the equal protection of the laws.

The conservative “judicial activism” trope claims that liberal judges just project their own feelings into the Constitution, but that’s plainly not what’s happening here with women’s rights. If you read the text in the most obvious way, women are “persons” and any law that discriminates against them does not give them the “equal protection” promised by the amendment. It’s a no-brainer.

“But wait,” an originalist would say, “you’re reading the text through 21st century eyes. The people who passed the 14th Amendment in 1868 discriminated against women all the time, and most of that discrimination wasn’t even controversial. They clearly didn’t believe they were establishing equal rights for women.”

And that’s absolutely true. If the people of 1868 had held our current interpretation of the 14th Amendment, the people of 1920 wouldn’t have had to pass the 19th Amendment giving women the right to vote. Surely any law that gives men (but not women) the right to vote is denying “the equal protection of the laws” to women. Right?

But here’s the problem with originalism: What people think they’re doing at any given point in time is usually not completely coherent. As Justice Souter said:

[The Constitution’s] language grants and guarantees many good things, and good things that compete with each other and can never all be realized, all together, all at once.

So the people of 1868 were simultaneously guaranteeing “equal protection of the laws” to all “persons” and denying women the right to vote. According to Jack Balkin, here’s how that worked, at least for married women:

under [the common-law doctrine of coverture] women lost most of their common law rights upon marriage under the fiction that their legal identities were merged with their husbands.

Today, after countless laws have ignored coverture without repealing it, how are judges supposed to apply the “original intent” of the 14th amendment? It’s not enough to say, “The people of 1868 would have made sense out of that somehow.” We, today, need to have some coherent account of what “equal protection of the laws” means. And we need to be able to apply it in situations that the people of 1868 never envisioned. (Does a transgendered person have the rights of a man or a woman?)

And that brings us to Strauss’ common-law theory of interpretation. Strauss takes for granted that as times change, we are increasingly confronted with the incoherence of the intentions of past lawmakers. They wanted “many good things” and didn’t foresee all the ways that change would bring those good things into conflict. They espoused high principles without grasping all the ways that the practices of their era contradicted those principles.

They were, in short, human.

The job of the judge, then, is not just to apply lawmakers’ intentions, but also to resolve inconsistencies in lawmakers’ intentions, so that the law continues to be applicable. That’s what is meant by a “living Constitution”. It’s an ongoing process, and occasionally so much change has happened or the original intentions were so contradictory that we wind up with interpretations that would have appalled the original lawmakers. (Same-sex marriage, for example.)

Judges have an obligation to use their interpretative power prudently, responding to real inconsistencies and resolving them with as little violence to the original intentions as possible. And overwhelmingly throughout our history they have, even in decisions that are sweeping reversals of past interpretations. (Strauss describes Brown v. Board of Education not as a sudden revolution, but as the culmination of a decades-long case-by-case process in which courts tried to make separate-but-equal work, until by 1954 it was obvious that it couldn’t work. A similar story can be told about Roe v. Wade.)

Most work that gets characterized as “liberal judicial activism” is like that: the end of a long prudent process of resolving inconsistencies, not a sudden attack of some judge’s personal idealism.

So when Scalia contends that the only alternative to originalism is anarchy:

Now if you give to those many provisions of the Constitution that are necessarily broad—such as due process of law, cruel and unusual punishments, equal protection of the laws—if you give them an evolving meaning so that they have whatever meaning the current society thinks they ought to have, they are no limitation on the current society at all.

he’s sweeping the real problem under the rug. It isn’t that we want these phrases to mean whatever we want; it’s that we want them to mean something coherent. Interpreting equal protection to defend women’s rights may not be original, but it is coherent. What alternative interpretation is?


Of course there’s simpler objection to Scalia’s position, which is that he doesn’t apply originalism consistently. The 14th Amendment is also the basis of the Citizens United decision (which Scalia supported) and all decisions that uphold corporate personhood.

Corporate personhood is indefensible from an originalist point of view. No one can make the case that the people of 1868 believed that they were granting rights to corporations. The only explanation I can find for an originalist to support corporate personhood is partisanship: The Court’s majority is conservative, and conservative bread is buttered by corporations.

Jack Balkin notes some additional inconsistencies in Scalia’s originalism.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or keep track of the Sift by following the Sift’s Facebook page.

The Yearly Sift

We are seduced into thinking that the right to choose from a menu is the essence of liberty, but the powerful are those who set the agenda, not those who choose from the alternatives it offers.

— — Benjamin Barber, Consumed (2007)

all the Sift quotes of 2010 are collected here

This is the 49th and last Sift of 2010. Time to look back at where we’ve been.

In this year’s Sifts:

  • The Theme of the Year: Concentration of Wealth. I never set out to explore a theme over the course of a year, but it happens on its own. This year, a number of Sfits ended up being about the concentration of wealth — that it’s happening, how it’s happening, and what problems it’s causing.
  • Update on Last Year’s Theme: Corporatism. The battle between corporations and humans continued this year. The Citizens United decision helped make 2010 a good year to be a corporation.
  • Secondary theme: Propaganda. By now I expect Sift readers to know that large swaths of the population believe things that are flat-out false. But why do they believe them? How do they believe them? I kept coming back to those questions all year long.
  • The Sifted Books of 2010. There were a lot of them this year. All the links are collected here.
  • Short Notes. The Sift’s biggest hit in 2010. My biggest mistake. And a couple of current notes: Obama moves towards embracing indefinite detention, a consequence of DADT repeal crosses my FaceBook news feed, and Barney Frank runs rings around a hostile reporter.


The Theme of the Year: Concentration of Wealth

In 2010 there were two economies. If you were a Wall Street banker, happy days were here again. Even if you were just an investor, things were pretty good — the Dow is up nearly 1000 points this year, almost 10%. But if you were unemployed, it was a different story. Close to half of the unemployed — 6.3 million of them — have been out of work for more than 6 months.

That’s just the most recent step in a journey America has been on since late in the Carter administration: The rich have been getting richer, but everyone else has been working harder and producing more for little extra money — and sometimes less. The so-called “Bush boom” was the first time since the Depression that median household income dropped over a complete business cycle.

A lot of  people, including me, have talking about that for years. But in September a bunch of recent data got popularized in Timothy Noah’s series The Great Divergence on Slate and in the newly published Winner-Take-All Politics by Jacob Hacker and Paul Pierson.

The interesting point in this data is that the “vanishing middle class” phenomenon is only the part of the problem most of us are in a position to see. If you have the data, you realize that the super-rich are pulling away from everyone else, not just from the poor. If the world were a village of 1000 people, one guy would have made 1/8th of the money in 2008, nearly five times the share he got in 1973. (Increasingly that guy — or the super-rich class he represents — lives in a different world from the rest of us, as Robert Frank chronicled in Richistan.)

When you realize that hyper-concentration of wealth is the essence of the phenomenon, then most of the standard explanations fall away: It’s not global competition or education or immigration or automation, because none of that separates the top tenth of a percent from the top percent. Competition from illegal aliens isn’t preventing millionaires from keeping up with billionaires.

Hacker and Pierson lay the blame at the feet of the government: Republican and Democratic administrations alike have favored capital over labor, finance over industry, corporations over consumers, lenders over borrowers, fine-print-writers over the naive — in short, the very rich over everybody else.

Thomas Geoghagen’s Were You Born on the Wrong Continent? demonstrates that it doesn’t have to be that way. Europe is subject to all the same economic winds we are, but countries like Germany and France and Sweden have built much more egalitarian societies, which Geoghagen argues are better places for ordinary people to live.

Typically, concentration-of-wealth is argued as a moral issue: Why should some people be allowed to waste the world’s resources on ridiculous luxury while others can’t get necessities? (This is the point of view of The Moral Underground by Lisa Dodson. She tells the stories of middle-managers who — recognizing the injustice of it all — break or otherwise circumvent the rules to make life livable for the working poor. Conservatives are well defended against this moral argument, as I explain in How to Speak Conservative: Class Warfare.)

But Robert Reich’s Aftershock argues that concentrated wealth is bad in purely economic terms: In a healthy economy, mass production and mass consumption go together; money cycles naturally because people who make stuff can afford to buy stuff. (Similar ideas are in Paul Krugman’s The Conscience of a Liberal.)

But when wealth gets too concentrated, money piles up in the accounts of people who don’t spend it. At first they might invest it in new production, which is good, but even that slows down once it becomes clear that demand isn’t keeping up. (Why expand a factory if you can’t sell what it’s making now?) Instead, the surplus of the rich gets drawn into speculative bubbles, as they look for investments that don’t depend on increased consumption. (I explain what’s wrong with the contrary view — that rich people create jobs — in Where Jobs Come From. These days, it’s customers who create jobs, not investors.)

That low-demand, underemployed, bubble-driven economy is typical of both the last decade and the 1920s, the previous time wealth was over-concentrated. The 20s ended in the Great Depression, and the “Bush boom” nearly had the same result. Unless we can start de-concentrating wealth — as happened accidentally due to World War II — Reich makes the case that future business cycles will be similar: speculative bubbles followed by collapse.

Finally, we get to the moral case libertarians make for capitalism and the so-called free market: that the market gives people what they deserve, and that changing the market result is some form of theft. The best refutation of this idea is the book Unjust Deserts by Gar Alperovitz and Lew Daly, which I reviewed in April.

Alperovitz and Daly start with the question of why today’s economy is so much more productive than, say, America in 1800. It seems unlikely that the billionaires of today are hundreds of times harder working or smarter than the businessmen of 1800. The more sensible explanation is that society as a whole is benefitting from the accumulation of knowledge and social capital. The inventions of people alive today make a difference, but a much bigger difference is that we’ve gotten better at using things invented or discovered generations ago. (For example, we make really good wheels and fires these days.)

In short, our advantage in productivity is largely a collective inheritance from our ancestors, so diffuse that it’s not even attributable to individual bloodlines. What happens under capitalism, though, is that our collective inheritance benefits a relatively small number of people. What looks like individual earning is largely a usurpation of an inheritance that rightfully ought to belong to everybody. (We should all be getting our share of royalties on the Wheel. I made a similar argument last year in a talk called Who Owns the World?)


Another financial theme: I looked at a number of explanations of how the real-estate bubble grew and then popped, most notably The Big Short by Michael Lewis and ECONned by Yves Smith.


In April, AFL-CIO President Richard Trumka pulled a bunch of these themes together in a talk at the Kennedy School of Government.



Update on Last Year’s Theme: Corporatism

Last December was the first time I noticed an annual theme in the Weekly Sift. Over the course of 2009, I had become more and more radicalized about the opposition between corporations and human beings.

2010 started with the Citizens United decision, which I characterized as Judicial Activism: The Supreme Court Invents New Corporate Rights. That week I was also inspired to write The Book of Corporation, a re-telling of Genesis in which God creates the Eden Corporation, which in turn hires the Serpent as its CEO. Eventually the Babel Project succeeds and God is ousted by the Serpent.

In the Citizens United decision, the Court’s conservative majority anticipated that transparency would allow voters to evaluate the sources of campaign advertising, but that didn’t happen. Instead, Republicans managed to block the DISCLOSE Act in the Senate. Consequently, the fall elections saw a flood of anonymous money, nearly all of it spent on negative ads against Democrats. I covered this in Quotations of Chairman Anonymous.

The other big corporate/human conflict story of the year was the West Virginia mine disaster. Having reviewed Doubt is Their Product last year (followed by Merchants of Doubt this year), I saw the miners’ deaths differently than the mainstream media:

This is the current level of corporate ethics: If they can make money by killing their workers or customers, they will. It’s not just a few bad apples; it’s standard operating procedure. … Current law is more concerned with protecting the mine owners from frivolous claims than protecting the lives of miners.

That’s still true. A new mine safety bill was proposed after the miners’ deaths, but Republicans managed to defeat it.

Another place where corporate lobbying worked against the public interest this year was with regard to net neutrality:

The point here is to create many new choke-points where toll booths can be set up. That — and not innovation and competition — is how big corporations make big money.

I finally summed up my picture of corporations a few weeks ago in Corporations are Sociopaths. I don’t intend that to be a rhetorical insult; I propose it as a diagnosis. Like sociopaths, corporations can be useful and entertaining if you meet them in circumstances where they can’t benefit by harming you. But if you look at the diagnostic criteria for sociopathy, they correspond to traits of corporate governance.



Secondary Theme: Propaganda

In a way, propaganda is always a theme of the Sift. Nearly every week I’m pointing out some widely publicized or widely believed “facts” that have no basis in reality: that the stimulus bill gave favorable treatment to districts represented by Democrats, for example, or that Obama quadrupled the deficit Bush left him. Occasionally I do a whole set of Disinformation Watch notes to list false things currently passing for truth.

But (having noticed how often new fake facts appear to replace the ones we manage to knock down) this year I tried to delve deeper into the mechanisms of the propaganda that surrounds us. Who believes it? Why? Who promotes it? How? And what are the false narratives that support and are supported by all these fake facts?

Part of the mechanism of propaganda is the cooperation of the media, or at least its submission. That was the theme of Tortured Coverage: A Harvard study documented how major newspapers like the New York Times and the Washington Post stopped calling waterboarding torture when the Bush administration told them not to. The term became “contentious” rather than “objective” because the administration chose to contend against it.

Another level of mechanism is the network of right-wing think tanks and institutes that have been established by corporate and billionaire money. It is an entire system of apparent “experts” whose connections to their sponsors are rarely traced by the mainstream media, but whose opinions always fall in line with the interests of their sponsors. (This was the mechanism of Propaganda Lesson, in which the bogus scandal about stimulus funding was the result of “research” done by a “scholar” at the Manhattan Institute, funded predominantly by the billionaire Koch brothers.)

Similarly, large-scale corporate and billionaire money funded the Tea Party movement, but funded it through mechanisms that allowed the mainstream media to describe the movement as “grass roots”. In this way, disgruntled McCain voters who had never liked Obama were put forward as “independents” who had been “shocked” into opposition by the “radical” Obama administration. (What Money Buys)

The ultimate conservative infrastructure is the right-wing media, epitomized by Fox News, but embracing talk radio, newspapers like the Washington Times, and other outlets. This media empire has reached the point where Senate candidates like Sharron Angle in Nevada could ignore the mainstream media entirely, refusing to answer any questions not posed by sympathetic voices. Fortunately, no major candidate who adopted such a strategy won a competitive race this year. But if Sarah Palin runs for president in 2012, we may see this strategy tested on a national scale. (The Private Campaign)

At the narrative level, I looked at the image of “government spending” which is always “out of control” and “wasteful”. This narrative is so well established by now that no facts are needed to support it. And so in the fall campaign right-wing candidates were able to run on a “cut spending” message without identifying any actual spending cuts other than the most trivial. They were pledged to cut “waste”, which the narrative tells us is everywhere. In an article titled simply Spending, I outlined how the supposedly “untouchable” parts of the budget were already enough to have caused a deficit in 2010.

In The Thing Behind the Thing I outlined three sets of largely unconscious assumptions underlying Tea Party rhetoric: that the authority of the Law comes in some way from God or Nature rather than from a social contract; that the punishment of transgressions is a good thing in and of itself, not requiring any justification in terms of its results; and that “the People” (as in “the People need to take this country back”) are straight white Christians.

Propaganda Lessons from the Religious Right was an attempt to get at some of the deep assumptions that make outlandish conspiracy theories believable to those on the religious Right: Belief in a Devil makes it unnecessary to provide a motive for the conspiracy, because it can literally be “demonized”. (How else to explain those terrorists who “hate progress and freedom and choice and culture and music and laughter”?) Also, a template like “reverse discrimination” can be promoted over decades, so that when an individual issue is identified as reverse discrimination, the pieces of the template snap into place without needing evidence to establish them. The lesson is that good framing doesn’t just happen because you coin a clever slogan. Templates of thought can take decades to build up.

Why Democrats Are Always on Defense makes a similar point in a different way. Here the phenomenon to be explained is: Democrats think they must “move to the Right” when they lose or fear losing, while Republicans never have to move to the Left, no matter how badly they get beaten. The piece is a re-introduction of George Lakoff’s notion of frames, and explains how a poll-driven approach to an issue can change the poll it is based on. (When liberals take what polls say is a “centrist” position, they can shift the public debate to the Right, moving the center away from the position they just took.)

Finally, last week I took a look at one of the deep conservative frames: class warfare. The phrase evokes an entire mythology on the Right, which liberals who argue against it are largely unaware of.



The Sifted Books of 2010

I went wild reviewing books this year: 16 of them in all. Some have already been mentioned in the previous sections: Aftershock by Robert Reich, Were You Born on the Wrong Continent? by Thomas Geoghagan, Winner-Take-All Politics by Jacob Hacker and Paul Pierson, ECONned by Yves Smith, The Big Short by Michael Lewis, Unjust Deserts by Gar Alperovitz and Lew Daly, Richistan by Robert Frank, The Conscience of a Liberal by Paul Krugman, The Moral Underground by Lisa Dodson, and Merchants of Doubt by David Michaels.

Other Sifted books of 2010 were:

Washington Rules by Andrew Bacevich. Surprisingly, this is the only military or foreign-policy book that I reviewed in 2010. Bacevich is a retired colonel who has begun to doubt the necessity or wisdom of America policing the world. This book retells American military history since World War II in an attempt to explain how perpetual war became acceptable to the public, in spite of the fact that our wars seldom proceed as expected or achieve what was desired.

The Living Constitution by David Strauss. Strauss explains the common-law method of interpreting the Constitution, and presents it as a practical alternative to the better-known-but-impractical theory of originalism. At least we don’t have to try to imagine what the Founders would have thought about the Internet.

Democracy, Inc. by Sheldon Wolin. Wolin outlines what he calls “managed democracy”, in which the people don’t actually rule, but only ratify the decisions of their leaders.

The Long Descent by John Michael Greer. Greer discusses the end of civilization as we know it and stays calm about it. How exactly does the trip to Hell in a handbasket go? And what should you do when you get there?

Methland by Nick Reding. Reding interprets the crystal meth problem as a symptom of larger problems: the collapse of the social contract and the inability of government to do sensible things that would interfere with corporate profits. The result is a threat to the survival of small towns in America.

Storms of My Grandchildren by James Hansen. A NASA climate historian explains why global warming is even more serious than most people think.



Short Notes

The Sift article that made the biggest splash this year was My Reservations about the Market Economy. I used Open Table, a web site for making restaurant reservations, as an example of how the market economy rewards gatekeepers, not producers.

A regular Sift reader posted a link on Reddit, which for some reason took off. (Go thou and do likewise.) The Sift got 5000 hits that week (rather than a more normal 200-400).


My biggest mistake in 2010 was in refusing to believe for most of the year that the generic-ballot polls showing a Republican landslide in the House would predict the election. In the Senate, things turned out more-or-less as I expected: Republicans gained, but didn’t win the Senate, because the crazy candidates they nominated (Sharron Angle, Christine O’Donnell) couldn’t live up to the public’s image of a “generic Republican”.

Many House battles, on the other hand, never got beyond the generic race, and Democrats were unable to make hay out of the wild positions the Republicans were taking or had taken. But the main thing my crystal ball failed to pick up was that the Democrats would completely refuse to defend their actions. I expected a real debate about the health-care law, and pre-election votes that would tie the Republicans to unpopular pro-wealth positions. None of that happened.


In current news: According to Pro Publica, the Obama administration is drawing up an executive order that will formalize a process of indefinite detention for suspected terrorists.

I was against this when W wanted to do it, and I’m against it now. No matter how conscientious an executive-branch process you set up, everybody with any power in it takes orders from the President. You can’t deprive somebody of liberty forever one the say-so of one guy.

A lot of the claims people make about “the Constitution” are partisan. (Just about all the Tea Party folks, for example, started worrying about the Constitution on Inauguration Day, some time around noon.) But this is a real constitutional issue, and a good test of whether somebody really cares about the Constitution. You can’t seriously worry about whether the Constitution allows Congress to make you eat your vegetables and not worry about whether it allows the President to lock you up and throw away the key.


It was one of those innocuous things that come across my FaceBook news feed all the time. One of my friends updated her status to say she’s in a relationship. One of my friends in the Navy.

Oh.

And speaking of the DADT repeal, Barney Frank totally eats the lunch of a reporter from the right-wing CNS network when he springs a gotcha question about gay and straight soldiers showering together.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or keep track of the Sift by following the Sift’s Facebook page.

Safe Ground

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2010%2F12%2Fsafe-ground.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

Reformers who are always compromising have not yet grasped the idea that truth is the only safe ground to stand upon.

— Elizabeth Cady Stanton, The Woman’s Bible (1898)

In this week’s Sift:

  • The Deal. We now know what President Obama got by agreeing to extend the Bush tax cuts. The agreement is defensible economically, but you have to wonder what’s going to happen politically a year from now. Also, how to answer the “it’s my money, not the government’s” line.
  • Too Good, Too Easy, But … For years, educators have been working to close gender and racial performance gaps. A new technique seems to do just that … but it has nothing to do with the subject matter of the course. Why I’m not totally skeptical.
  • Elizabeth Edwards. I can’t say I knew her, but I did meet her once. Her death gives me flashbacks to my wife’s cancer battle.
  • Short Notes. Hottest year ever. Death panels in Arizona. Republicans rediscover earmarks. Suspicious behavior at WalMart. The difference between freedom and options. Living without Monsanto. The lack of Republican scientists. A smoking gun at Fox News. And more.


The Deal

Last week I expressed my bewilderment that the administration was planning to give in to the Republican demand to extend the Bush tax cuts for all income rather than just the first $250,000 of income. Well, the full deal was announced this week, and much argument has ensued. Let’s see if we can sort this out.

As usual, the best spokesman for White House economic policy is Austin Goolsbee at the White House White Board. His basic message is that President Obama wanted another economic stimulus and the Republicans wanted another handout to the rich (whose stimulative effect is questionable). In the compromise, Obama got $238 billion of stimulus, while giving up $114 billion of handouts to the rich. (The rest of the $900 billion deal is the middle-class tax cuts that both sides claimed to support. Ezra Klein has a pie chart.)

The $114 billion for the rich means that they pay $91 billion less in income tax and $23 billion less in estate tax than if the Bush cuts had been allowed to expire.

The $238 billion of stimulus includes $104 billion of extended unemployment benefits, grants for renewable energy projects, and various tax credits targeted at low-and-middle-income people. This is good both in terms of compassion and economic stimulus (because poor people spend their tax credits while the rich may not).

Another $22 billion is for letting businesses write off their investments faster. This is good stimulus, because it might have a multiplier effect: The $22 billion in tax cuts might motivate a much larger amount of business investment. But I question listing it as “our” part of the deal rather than “theirs”. (Paul Krugman laments: “how, exactly, did we get to the point where Democrats must plead with Republicans to accept lower corporate taxes?”) This money will also go to the rich (though it will be in exchange for them stimulating the economy, rather than just a tribute to their wealth), so their take is really $136 billion. (114 + 22 = 136)

The remaining $112 billion on the stimulus side goes to the “payroll tax holiday”, which is the most controversial part of the package. This lowers the tax that wage-earners pay into the Social Security fund from 6.2% to 4.2% for the next year. It replaces that contribution with money from the general fund, so that the solvency of Social Security isn’t affected.

Whether this is a good idea or not depends on whether you look at it economically or politically. Economically, it is a very effective form of stimulus: Working people will see more money in their paychecks, which many of them will spend.

Politically, the question is what this is going to lead to. The plutocrat tax cut is for two years, the payroll holiday for one. So what happens a year from now? Greg Anrig of the Century Foundation worries:

Particularly if the economy remains weak, as seems likely, few politicians of either party will want to oppose an extension of the payroll tax holiday for another year. Because payroll taxes are taken straight out of paychecks, both a reduction in them and then a return to current levels would be highly noticeable to most workers.

Under that scenario, what would happen if the Republican candidate won the presidency? Given the conservative movement’s long-standing hostility toward Social Security, the likely next step would be to make the payroll tax cut permanent, while no longer replenishing the Social Security trust fund to make up for the lost revenue. That basic strategy of slashing the payroll taxes that support the program has been a central plank of right-wing think tanks for decades, but until this point it has never succeeded.

So the tax holiday could undermine the political case to preserve Social Security — especially if it gets extended beyond one year, as it probably will. The reason we all feel so strongly that we deserve our Social Security benefits is that we paid for them already. If instead the Social Security trust fund is being filled out of the general coffers, then Social Security becomes more of a welfare program for old people, and the case against cutting benefits loses a lot of its force.


Michelle Bachman has a knack for spelling out the ridiculous stuff that other Republicans merely imply:

I don’t think letting people keep their own money should be considered a deficit.

In other words, the laws of addition and subtraction should bend to conservative ideology. The deficit is expenses minus revenue, but cutting revenue shouldn’t increase it.

The standard Republican line about tax cuts ignores the deficit completely, but says that tax cuts don’t have to be balanced with specified spending cuts because it’s “letting people keep their own money”.

The proper response to the “it’s my money, not the government’s money” line is “it’s your government”. This isn’t the English king imposing taxation-without-representation on the 13 colonies. The government is Us — We the People. That’s what the Constitution is all about: establishing a structure by which we can make these kinds of collective decisions. Saying “it’s my money, not the government’s” is saying that the Constitution failed.

We the People spend our money in two ways: as individuals and collectively through public programs supported by taxes. Both are legitimate, but we can’t spend the same money twice. If our democratically elected government-of-the-People has already spent the money, then it isn’t “our money” any more to spend as individuals.


The most interesting response to the tax deal came from the market for U.S. government bonds, which plunged. The yield on 10-year bonds rose to 3.32% at Friday’s close, up from 3.02% a week earlier.

I don’t think markets are omniscient, but I do think they are honest. People might bluster in their public statements, but if an idea makes them move their money, they must really believe it.

If you don’t speak bond-market language, let me interpret: The U.S. government wants you to give them dollars today, with the idea that they’ll give those dollars back in ten years. How much extra you want in order to agree to that deal depends on two things: what you think dollars will be worth in ten years, and whether you think the government will be solvent in ten years.

If the interest rate goes up, that means investors are worried about those two factors. If it goes up quickly (and an increase of 1/3 of a percent in a week is quick in a market that is ordinarily very stable), that means that investors were not only worried, they were surprised. (If they’d been expecting to be this worried now, they’d have been only slightly less worried last week.)

So the bond market believes this deal is bad for the future value of the dollar and the future solvency of the federal government. And it didn’t expect a deal quite this bad.


Kevin Drum isn’t worried about what the payroll tax holiday does to Social Security.



Too Good, Too Easy, But …

This sounds way too good and too easy to be true, but I don’t see any holes in it. Discover reports on a simple classroom exercise that seems to undo the pernicious effect of stereotyping. It was originally developed to help black high school students, and has now been tested on female physics students. In short: groups that had a persistent test-score gap saw that gap substantially diminish when they did this exercise.

It’s not some intensive coaching thing and has nothing to do with the subject matter of the course: Take 15 minutes and write about values that are important to you and why they are important. A University of Colorado physics class had students do this twice near the beginning of the term, and then proceeded normally.

The point, as I understand it, is to change the mindset of the student in that class. Having recalled and validated your core values brings your whole being into the room, and banishes the I-don’t-belong-here mindset.

It sounds like another one of those new-agey things that never actually work when I try them, but here’s what makes me give it some credence. Decades ago, as a teacher and graduate student in one of the prime gender-gap subjects (mathematics), I got to observe some of the nuts-and-bolts of the problem-solving process. Solving a hard math problem is a little like investigating a crime: First, you figure out who did it, and then you assemble a case to convince a jury.

In my experience, the mathematics gender gap was in figuring-out-who-did-it part. That kind of thinking is all speculative, and it collapses whenever the overall uncertainty overwhelms you. To succeed, you need to postulate something on intuition, and then have enough faith in your intuition to keep postulating on top of it until you have the outline of a solution.

My female students had a higher tendency to throw one speculative idea out there — maybe even a correct one — and then get stuck because they weren’t sure they were right. Often the only coaching they needed was, “OK, suppose that’s right. Then what?” Men were more likely to have the arrogance necessary to keep building their castle of speculation even though the foundations hadn’t been established yet.

So this quote in the Discover article made a lot of sense to me:

if someone can’t hammer in a tricky nail, it might not be because their arm isn’t strong enough. It might be that they constantly have to look over their shoulders while they work.

Why the writing exercise solves this problem so easily is still a little mysterious, but it doesn’t look as magical as it did at first glance.



Elizabeth Edwards

You probably already know that Elizabeth Edwards died. In a Facebook post a few days before her death she wrote:

The days of our lives, for all of us, are numbered. We know that. And yes, there are certainly times when we aren’t able to muster as much strength and patience as we would like. It’s called being human. But I have found that in the simple act of living with hope, and in the daily effort to have a positive impact in the world, the days I do have are made all the more meaningful and precious.

I met Elizabeth Edwards once, briefly, when one of my friends held a house party for her husband’s campaign. And I heard her speak several times, with and without John. She wasn’t the smile-and-wave type of political wife. She was passionately committed, knowledgeable, and she had to be careful not to outshine the candidate, who had a pretty good public persona of his own.

Back in March, 2007, when I first heard about her cancer, I recalled my wife’s experience with breast cancer and wrote a blog post advising John and Elizabeth to rethink this whole presidential-campaign thing, even though it was probably Elizabeth’s last chance to see John in the White House. That post is as much about cancer and marriage as it is about politics, and I think it holds up pretty well from the perspective of three-and-a-half years.

Given how John’s career flamed out, it can be embarrassing to remember that I supported him. But when I look back at what he was saying in 2007, it holds up pretty well too. Talking about the vested interests in the health care industry and the Powers That Be in general, he said:

If you give them a seat at the table, they’ll eat all the food. You have to beat them. … You can’t be nice to these people. We’ve been nice to them. That’s the problem. And they haven’t given up anything voluntarily.

Three years later, they still haven’t.


Watching Cate Edwards eulogize her mother, I thought: The apple doesn’t fall far from the tree. I didn’t know that poise and presence were inheritable, but apparently they are.



Short Notes

In November, we continued marching on towards the hottest year on record. So much for that “global warming ended ten years ago” canard.


Sarah Palin told us there would be death panels, and sure enough there are. But it’s got nothing to do with ObamaCare and everything to do with spending cuts. Governor Brewer has cut the Medicaid funding for transplants in Arizona. One guy who needed a bone marrow transplant is dead already, and Randy Shepherd is waiting for a heart transplant.

It’s important to focus in on these personal stories, because conservative rhetoric wants you to think of “government” as some black hole that has nothing to do with people. So spending cuts only hurt “government” and “bureaucrats”.

But spending cuts do hurt real people, sometimes fatally.


Here’s another personal story that is not quite so horrible. It’s just an everyday account of what working people have to do to get by these days. Your household needs two incomes to keep the house, but it only has one. You have a job, and your spouse has a 2-year offer far away. So: My Husband is Leaving Me.


I’m separating this from my Elizabeth Edwards piece, because I don’t want it dirtied with partisan sniping. But John Edwards is a good example of how the standards are higher on the Left.

John cheated on his dying wife, and his career is over. Newt Gingrich did exactly the same thing, and he’s on the short list 2012 presidential candidates.


Remember those promises of action to improve mine safety after 29 West Virginia miners died in April? Umm, never mind.

According to NPR, the Upper Big Branch mine that collapsed had “more serious safety violations than any in the country. But lawmakers say loopholes in the system allowed the company to file lengthy appeals that delayed penalties.” And so miners died.

But changing the law is still “premature” according to Republicans. This is where we’ve gotten: Instituting a new regulation on a corporation requires a higher standard of proof than invading a country.


For some reason I haven’t quite fathomed, there are things you just can’t say in American politics. They’re not false or disloyal or immoral, but announcing them in public is heresy of the first order.

One of those taboo statements is: “An awful lot of the federal budget is money well spent.” That’s heresy, because everybody knows that all non-military government spending is waste.

Well, it’s fascinating (in an anthropological sort of way) to watch the new Republican majority in the House start coming to terms with this fact without admiting it. It’s showing up particularly in their discussion of earmarks, which (as we all know) are worst kind of waste, bridge-to-nowhere type waste.

Now that they have the power to end all that waste, they want to, really. But then they have to wonder about the worthwhile projects in their own districts that have been funded so far by earmarks. Politico reports:

many Republicans are now worried that the bridges in their districts won’t be fixed, the tariff relief to the local chemical company isn’t coming and the water systems might not be built without a little direction from Congress.  So some Republicans are discussing exemptions to the earmark ban


WalMart stores are showing this strange video from the Homeland Security Department. “Homeland security begins with hometown security,” says Janet Napolitano. So you should report to WalMart managers anything “suspicious” you see in the store or parking lot. Because, I guess, Al Qaeda must be just dying to hit some WalMart in the middle of Montana.

Here’s the suspicious behavior I see at WalMart: Americans working for low wages and no health care. They have jobs, but they’re on food stamps and Medicaid. The company is making billions, but intimidating its workers out of forming a union.

Report that to a manager.


Apparently the bizarre “War on Christmas” idea has reached the UK, and the BBC’s Marcus Brigstocke is having none of it.


Last week I made the case that corporations are sociopaths, and observed how hard it would be to follow Martha Stout’s advice on dealing with sociopaths — namely, don’t; get them out of your life as fast as you can.

Yes magazine’s April Dávila demonstrated that when she tried to live without Monsanto. Monsanto’s genetically modified corn, soybean, sugar beet, and cotton seeds are planted by countless farmers, and the resulting foods and fibers are very hard for a consumer to trace. Just about any processed food has high-fructose corn syrup in it, and probably there’s some Monsanto corn in there somewhere. Going organic helps avoid Monsanto’s bovine growth hormone (given to dairy cattle), but legally “a Monsanto seed that is grown organically is still organic.”

The whole point of a market economy is that consumers are (as Milton Friedman’s book says) “free to choose”. But more and more the market resembles a computer game: We are not actually free, we are just given options within a scripted scenario. Deciding you don’t want to deal with Monsanto or don’t want to support genetically modified crops isn’t in the script.


By the way, here’s a cool thing about Yes magazine: People vs. corporations is a category on their web site.


Also from Yes: a call for a constitutional amendment to undo the Citizens United decision that allowed corporations to spend unprecedented amounts in the recent elections.

This is another example of the difference between real freedom and options-within-the-script. Polls show a significant plurality of people support such a constitutional amendment. Will that get it onto the public agenda? In the normal course of things, no. That option is not in the script. Getting an issue like this on the public agenda, so that candidates have to take positions on it and low-information voters realize they should have an opinion on it, will take some creativity — much more stuff like the Target Ain’t People protest and video.


I doubt you’re shocked to hear that Fox News slants its coverage. But now we have the internal emails to prove it.


The week’s strangest opinion piece: Slate’s Daniel Sarewitz laments the lack of Republican scientists (OK so far), and thinks that scientists need to do something about this. The fact that Republicans have consistently chosen ideology over truth has nothing to do with it.


You don’t have to be a sports fan to be amazed by the video of the Metrodome’s inflatable roof collapsing under snow.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or keep track of the Sift by following the Sift’s Facebook page.

Shining Images

Power tends to confuse itself with virtue and a great nation is particularly susceptible to the idea that its power is a sign of God’s favor, conferring upon it a special responsibility for other nations — to make them richer and happier and wiser, to remake them, that is, in its own shining image.

— Senator J. William Fulbright, The Arrogance of Power (1966)

In this week’s Sift:



The Sift Bookshelf: Washington Rules by Andrew Bacevich

Every political discussion these days seems to center on the long-term budget deficit and what we can do to narrow it. We talk about raising the retirement age or privatizing Medicare and all sorts of other benefit-restricting changes. But one idea never seems to come up, or when it does come up it quickly gets dismissed: We could stop policing the world.

The cost of policing the world shows up in two ways: First, year-in year-out we spend more on defense than any conceivable coalition of enemies. (Stockholm International Peace Research Institute estimates our military spending, including ongoing wars, at 46.5% of the world total.) That’s because we have to be prepared to intervene anywhere that evil might raise its head. We have to have military bases everywhere, and weapons and soldiers we could send to those bases at a moment’s notice.

Second, we are fighting more-or-less constant wars, with no end in sight. Our combat mission in Iraq is supposedly over, but we still lose a few soldiers every month, and the country still isn’t safe enough for its two million refuges to come home. If things deteriorate we might wind up sending troops back.

In Afghanistan our coalition regularly loses 50-75 soldiers a month. And no corner has been turned yet. The number of coalition deaths has gone up every year since 2003. Now we’re talking about 2014 as a date for ending the war, but even that seems optimistic.

Put together, the USA Today estimated in May that the two wars were costing $12.2 billion a month. In addition, we are regularly blowing things up in Pakistan, where we are allegedly not at war. Sometimes we also blow things up in Yemen. Some people want us to attack Iran. Near term, it’s more likely that we’ll be fighting in one of those countries than that we’ll get out of Iraq or Afghanistan.

Unlike entitlement programs, we have no way of predicting future military expenses. So we can talk rationally about when Medicare will go bankrupt, but not when our military commitments will become unsustainable.

Andrew Bachevich’s recent book Washington Rules: America’s Path to Permanent War, examines how we got here and why it is so hard even to discuss backing away. It’s a history lesson that starts after World War II and goes to the present.

I found two things about this book striking: First, how consistent our military policy has been, no matter how our elections turn out. (I remember a joke from the 60s: “They told me that if I voted for Goldwater we’d soon have half a million troops in Vietnam. Well, I did, and we do.”) Administrations change, circumstances change, enemies change, but the need to police the world goes on.

Why? The answer is pretty simple: Corporations make money off of it and pundits, politicians, and bureaucrats make their careers. Seen any pacifist talk show hosts lately?

Second, permanent war is a post-911 thing. It’s easy to forget that. Every administration in my lifetime has fought somewhere, but the American people have never before accepted war as a way of life. We just had an election while two wars were ongoing, and frustration at the endlessness of them was not an issue. Hawks didn’t demand escalating to speed up victory; doves didn’t call for sudden withdrawal. It just wasn’t a big deal.

That’s new.

Bacevich calls for returning to a pre-1941 view of America’s role in the world. We should be an example of freedom and democracy, not the guarantor of it. He admiringly quotes John Quincy Adams from 1821:

[The United States] is the well-wisher to the freedom and independence of all. She is the champion and vindicator only of her own.



Touch Somebody Else’s Junk

This week a great deal of ink was spilled in response to the new TSA full-body scanners and the opt-out pat-down that would be sexual assault if you hadn’t consented in order to get where you’re going. A lot of it was simple venting — like the guy who protested “Don’t touch my junk!” — and provided little insight to the issues involved. Let me see if I can assemble the worthwhile ideas.

First, this is all a response to the underwear bomber who failed to do anything more than burn his own genitalia last Christmas. But by smuggling PETN explosive onto a plane in his underwear, he did point out a hole in airline security: PETN is plastic rather than metallic, so the metal-detectors didn’t pick it up.

Ridiculous as that incident was, it pointed out a plausible avenue of attack if more competent suicide bombers could be found. (The problem with the whole suicide-bombing strategy is personnel. You’re always relying on somebody who’s never done this before.) To avert future PETN attacks, TSA decided it needed either a scanner that could find hidden bags of fluid, or it needed to check people for strange bulges in their underwear (as in the cucumber scene from This is Spinal Tap).

So the scans make sense from some narrow airline-security perspective: Somebody told TSA to defend against this threat, and the intrusive scans and searches are the most obvious way to fulfill that mission. It’s easy to imagine the outcry if a PETN explosion brought down a plane a year after it had been demonstrated that such an attack was possible.

Whether the scans make sense from a broader anti-terrorism perspective is more debatable. If you see an airliner bomb just as a way to kill 300 innocent people rather than an end in itself, you recognize that there are a lot of ways to kill innocent people in an open society like the United States. (You could blow yourself up in a mall food court on Black Friday, or even in the densely packed lines of people waiting to go through airport security.) There’s no point taking extreme measures to guard one door to mayhem if you leave the others wide open.

In short, from this point of view life in an open society is inherently risky. It’s not clear why airports should be a little chunk of police state in the middle of an otherwise free country.

There’s a legitimate debate to be had between those two views. But there’s a third POV out there that is just dangerous. Charles Krauthammer writes:

The only reason we continue to do this is that people are too cowed to even question the absurd taboo against profiling – when the profile of the airline attacker is narrow, concrete, uniquely definable and universally known.

It is undoubtedly silly to search 8-year-olds and 80-year-olds. But if word got out that we had a “narrow, concrete” profile of terrorists, Al Qaeda could start a worldwide search for out-of-profile sympathizers. Somewhere there is an 80-year-old with nothing to lose, or an 8-year-old that somebody thinks is expendable.

But an even more serious problem with the “universally known” profile is that it conveniently exempts people like me and Charles Krauthammer. (I can imagine Krauthammer’s reaction if he were pulled out of a line because someone thought Jews were suspect.) It’s way too easy to give away somebody else’s rights.

This is one of the many problems caused by the open-ended nature of the War on Terror. If a serial killer who looked like me had just escaped from a nearby prison, I could live with the indignity and inconvenience of constant suspicion for a week or two until they caught him. But that’s not what’s happening. We’re talking about permanently treating certain kinds of people differently. And once we’ve established that innocent people who fit a certain description permanently have fewer rights than the rest of us, where does that stop?

Where to draw the line between security and convenience is a question best decided by an informed public — a public that has to submit to the inconveniences it requires in the name of security. If I’m not willing to submit to a full-body scan or an invasive grope, what right do I have to demand it of someone else?


I wonder why Amtrak isn’t making hay out of this. They’ve poked at the inconvenience of plane travel in the past. Why not hit it harder now?



Hope and Denial

A new study by two Berkeley psychologists is apparently about people’s attitudes towards global warming, but I think it speaks to something much deeper that liberals need to bear in mind as they craft their messages. Feinberg and Willer are checking this hypothesis:

information about the potentially dire consequences of global warming threatens deeply held beliefs that the world is just, orderly, and stable. Individuals overcome this threat by denying or discounting the existence of global warming, ultimately resulting in decreased willingness to counteract climate change.

The researchers screened participants to identify people who have what they called “just world beliefs” — the idea that the world is fundamentally fair and predictable. Then they split the group in two and exposed each half to a different article about global warming. The two articles had the same first four paragraphs predicting the dire consequences to future (i.e. innocent) generations if we change nothing. But one group saw an article with an optimistic ending, emphasizing what we could do to avert these disasters, while the second saw a pessimistic ending, leaving little hope that change would be possible or effective.

As you might expect, the people who saw the optimistic message came away with a more optimistic attitude towards combatting global warming than the people who saw the pessimistic message. But here’s what’s interesting: The optimistic-message group had its belief in global warming itself increase after reading the article, while the pessimistic-message group grew more skeptical about global warming.

In other words, confronted with a message that undermined their belief in the world’s underlying justice (that innocent future generations will suffer and there’s nothing to be done about it), participants discounted the whole issue. It’s just not happening.

The liberal message in general says that the economic system and global power structure is unjust and needs to change. But if we stop there, or worse, if we imply that the Powers That Be are too powerful to challenge, a lot of people will simply decide to believe another set of facts. They won’t believe that Americans are dying for lack of health insurance, or that people desperately looking for jobs aren’t finding them, or that innocent people got sucked into Guantanamo and now can’t get out.

That’s why Obama had to run on themes of hope and “Yes we can.” Because if nothing can be done, then why disturb yourself by learning about the world’s injustices?



Short Notes

An amazing one-minute video of a stunt pilot whose maneuver turned into a bigger stunt than he planned.


Cognitive dissonance watch: If you’re worried that you’re going to leave your grandchildren a trashed planet, you’re an alarmist. If you’re worried that you’re going to leave them a pile of federal debt, you’re a serious person. Grist’s David Roberts explains the actual difference:

deficit concern is being driven by the wealthy, to secure their privileges. Climate change will affect everyone, but its worst effects will fall on the marginalized, poor, and dispossessed, and as a result, it’s being ignored and minimalized.


Like so many pieces of right-wing mythology, the account Limbaugh, Beck, et al give of Thanksgiving is not true.


For years one common complaint about the Left was that we made everything political. You couldn’t tell a joke or use common English without somebody dragging politics into it. Well, Dancing With the Stars was political this year, and we had nothing to do with it.


An Italian lingerie company has started its own version of Cash for Clunkers.


Now that the Republicans have successfully blocked a cap-and-trade law, the battle shifts to the EPA and the extent to which it can act without further authorization from Congress. Which means: You can expect an across-the-board attack on the EPA as an evil corrupt Marxist agency.

Grist examines one opening salvo, and finds that the Wall Street Journal is lying through its teeth.


I seem to be on a Grist binge. Well, this is Grist’s response to the James Fallows piece on clean coal that I linked to a couple weeks ago. The Grist-gist is that the content of Fallows’ article is as well-thought-out as Fallows’ stuff usually is. But the existence of Fallows’ article gives aid and comfort to the wrong people:

If “clean coal” development isn’t happening in the U.S., it’s not because DFHs are against it, it’s because nothing is happening in the U.S. A piece focused on that corrupt, criminal inaction might rattle a few cages. A piece reassuring Big Coal and its many backers that they’ll always be in the driver’s seat won’t.

[DFH is a standard pejorative or ironic acronym for left-wing environmentalists.]


A 1999 study showed that medical mistakes in the US caused about 100K deaths and a million injuries a year. A new study of hospitals in North Carolina shows that nothing has changed:

About 18 percent of patients were harmed by medical care, some more than once, and 63.1 percent of the injuries were judged to be preventable. Most of the problems were temporary and treatable, but some were serious, and a few — 2.4 percent — caused or contributed to a patient’s death, the study found.

The findings were a disappointment but not a surprise, Dr. Landrigan said. Many of the problems were caused by the hospitals’ failure to use measures that had been proved to avert mistakes and to prevent infections from devices like urinary catheters, ventilators and lines inserted into veins and arteries.

This is part of our overall “amenable mortality” problem — the number of Americans who die because we take bad care of each other. The French do much better. (Actually just about everybody does much better, but the French are particularly good.) We could imitate them, but that would be socialism and we are a freedom-loving capitalist country. “Give me liberty or give me death” — you didn’t realize how literal that was, did you?


The New Yorker’s George Packer reads President Bush’s memoir so that I don’t have to. “Very few of its four hundred and ninety-three pages,” he reports, “are not self-serving.”

For Bush, making decisions is an identity question: Who am I? The answer turns Presidential decisions into foregone conclusions: I am someone who believes in the dignity of life, I am the protector of the American people, I am a loyal boss, I am a good man who cares about other people, I am the calcium in the backbone. This sense of conviction made Bush a better candidate than the two Democrats he was fortunate to have as opponents in his Presidential campaigns. But real decisions, which demand the weighing of compelling contrary arguments and often present a choice between bad options, were psychologically intolerable to the Decider. They confused the identity question.

This isn’t just Bush, it’s a whole segment of the electorate. An awful lot of the populist criticism of Obama is phrased in terms of what he is rather than anything he has done or is trying to do. (Here’s a clip of Rachel Maddow talking to Joe Miller supporters on the street in Alaska. The conversation turns to Attorney General Eric Holder, who they know is “anti-gun”. But they have no idea what anti-gun thing he is supposed to have done.) Obama is a socialist, a Marxist, a foreigner, a Muslim. He’s anti-American. What he does is almost an afterthought compared to what they think he is.


You don’t usually think of concrete as a high-tech material, but that could change. Cracks in concrete actually start at the molecular level. (The article says subatomic, but I doubt that.) Adding carbon nanotubes to the usual mixture fills invisible holes to make highways that could last 100 years instead of 20.

Another concrete innovation is a bacteria that colonizes tiny cracks and produces a glue that hardens. Presto! Self-healing buildings.

The world uses so much concrete that any improvement in it is a big deal. One source in the second article says that concrete production accounts for 5% of global carbon emissions.


Seneca Doane has the right phrases for talking about the Bush tax cuts: Democrats want to extend the cuts for the first $250,000 of a family’s income. Republicans want extra tax cuts for people who make more than that.

Extra — that’s the key word.


A jury of his peers found Tom DeLay guilty of money laundering. Predictably, DeLay used the familiar conservative line about “criminalization of politics” to describe the verdict.

“Criminalization of politics” goes back to the Iran-Contra scandal of the Reagan administration, and it means that liberals prosecute conservatives for doing things that are “just politics”. In truth, though, no American has ever been convicted of being a conservative. Every person convicted in such cases — like Scooter Libby in 2007 — is convicted of violating an actual law. The indictment cites a law, the prosecution assembles evidence that the law was broken, and the jury unanimously declares itself convinced beyond a reasonable doubt.

What “criminalization of politics” ought to mean, what it could more accurately refer to, is that politicians often pursue politics through criminal means like money laundering or obstructing justice. Occasionally they get caught, as DeLay was.


Just in time for Christmas shoppers, the NYT announces its 100 notable books of 2010.

In addition to those, let me plug a little-noted novel of 2008: The Gone-Away World by Nick Harkaway. I’ve had a hard time figuring out who to recommend it to, because (as one reviewer says) it “cuts across genre and expectation lines in the best possible way.” Ostensibly a post-apocalyptic science fiction novel, it combines some authentically good SF ideas about matter and identity with social insight, an outrageous sense of humor, and a very non-SF writing style. (Think Neal Stephenson).

The pioneers of science fiction (Wells, Verne, Asimov, Heinlein, et al) had fascinating ideas, but generally pedestrian writing styles. Harkaway also has fascinating ideas, but (like Stephenson) he clearly relishes words and all the wonderful ways they can be put together into sentences and paragraphs and scenes.


Times are hard — unless you’re a corporation. Corporate profits set a record last quarter. I’m sure they’ll be using that money to create jobs any day now. (That was sarcasm.) Think how many jobs they’d create if Obama weren’t so anti-business, or if the corporate income tax were lower.


One of the most publicized of the global-warming deniers is Lord Christopher Monckton, who isn’t any kind of scientist, but is a viscount — which must mean something, I guess. In this audio-and-slide presentation, John Abraham of the University of St. Thomas in Minnesota goes through Monckton’s presentation slide-by-slide and debunks his claims.

The typical sequence is: Monckton makes a claim and mentions some scientific paper as evidence. Abraham explains that Monckton is either misinterpreting or just making something up. Abraham writes to the authors of the Monckton-quoted paper, who agree with Abraham. It happens over and over and over.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com.

Blessings and Privileges

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2010%2F11%2Fblessings-and-privileges.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

The first principle of civilization ought to have been, and ought still to be, that the condition of a person born into the world, after a state of civilization commences, ought not to be worse than if he had been born before that period.

— Thomas Paine, Agrarian Justice (1796)

In this week’s Sift:

  • Scrooge in November. Thanksgiving was supposed to be farmers celebrating a bountiful harvest. But more and more it feels like pirates celebrating the distribution of booty.
  • My Reservations About the Market Economy. Open Table: A simple example illustrating how wealth flows to gatekeepers, not producers.
  • Short Notes. Thirty real-life Nights at the Museum. Celebrity infidelity. DIY federal budget-balancing. Cyberwar is happening. But-heads. And more.


Scrooge in November

I don’t know what the Thanksgiving equivalent of Scrooge is, but I find myself sliding in that direction. I’ve got nothing against gratitude, or a holiday in which an agrarian culture gives thanks for a bountiful harvest. But more and more of the standard Thanksgiving sentiments are leaving me with that bah-humbug feeling.

Thanksgiving is the holiday when we are supposed to count our blessings and be grateful for what we have. There are lots of ways to do that, and lots of excellent examples of people giving thanks in both religious and secular literature. But the Bible also contains an excellent example of how not to be thankful. In Luke 18, Jesus describes this character:

The Pharisee with head unbowed prayed in this fashion: “I give thanks, O God, that I am not like the rest of men — grasping, crooked, adulterous. … I fast twice a week. I pay tithes on all I possess.”

In other words: “What a great God you are, for making a great guy like me. Thanks for creating a world where I get to better than everybody else.”

Bertrand Russell satirized another kind of self-centered thankfulness in An Outline of Intellectual Rubbish:

Sometimes, if pious men are to be believed, God’s mercies are curiously selective. Toplady, the author of “Rock of Ages,” moved from one vicarage to another; a week after the move, the vicarage he had formerly occupied burnt down, with great loss to the new vicar. Thereupon Toplady thanked God; but what the new vicar did is not known.

If you listen closely, a lot of Thanksgiving prayers — particularly the patriotic ones — sound like these bad examples.

Thanks, God, for putting me in a country where I get to use up all the world’s oil. Thanks for making us so powerful that ordinary rules don’t apply to us: We can attack other countries with impunity, assassinate people we don’t like, and kidnap and torture anybody we think might pose a threat.

Thanks for a global economic system based on dollars — which we create at will, so our country can consume more than it produces year after year. Thanks for undocumented immigrants who will do our dirty jobs for less than minimum wage. Thanks for letting us ship so much of our dangerous or poisonous production to the other side of the world.

We’re grateful to You, O God, for creating a world in which it’s so great to be us.

I’m becoming suspicious of the whole count-your-blessings framing of the holiday. Because most of what we count are not “blessings” exactly. They’re privileges. They arrive on our doorstep not because we are God’s special loved ones, but because we are the beneficiaries of an unjust global system.

Suppose, for example, that you had been born in Guatemala. Your land has been blessed with a climate and soil perfect for growing bananas. But your portion of this blessing is that you get to compete with your fellow peasants for the opportunity to make subsistence wages working on plantations owned by foreign corporations. Somewhere back in the mists of history those corporations may have bought that land from your ancestors (or not), but whatever benefit they received was long gone by the time your life started. Your grandfather may have participated in a political movement to take some of those lands back, but that movement was put down by military force organized by the CIA. So your lands’ blessings belong largely to Americans now.

Or suppose you were born in Bolivia, a land blessed with rainfall that (depending on where you are) varies from adequate to abundant. But (until a near-revolution in 2002) none of it belonged you. All the water in Bolivia, even rain that fell decades ago and was sitting in underground aquifers, belonged to an international consortium led by Bechtel. Somewhere between God and you, the blessing of rainfall got intercepted and reassigned.

So yes, we Americans enjoy a large share of the world’s blessings. But it’s not at all clear that God intended us to have them. We took them. And I suppose we could thank God for making us strong enough to take what we want. But that’s a blessing on a different level than turkeys and pumpkin pies.

I know, most of us never consciously applied to be beneficiaries of an unjust system, or intentionally conspired to keep the booty coming. If we’re forced to think about it, we may not even approve. So how should we handle Thanksgiving?

I don’t have a complete answer, but I will make a few suggestions. First, after-the-fact guilt helps no one. The turkey’s in the oven, and you might as well enjoy it. If you don’t, nobody else will.

If you do remember the Bolivians, Guatemalans, and other dispossessed peoples in your Thanksgiving prayers, don’t think of them as “unfortunate”. That leads you back towards imagining yourself as “fortunate”– as God’s special friend. But God didn’t distribute the world’s wealth. People did — through force and guile and manipulation, often in perfectly legal and transparent ways. Many of these transactions have resembled another Bible story: Esau selling his birthright to Jacob for a meal. Some temporary need coupled with one generation’s lack of foresight — and ownership of the land and the forests and the rivers shifts forever.

Charity is fine, but that’s not the answer either. The world’s poor do need the jug of water you could buy them, but what they really need is access to the river. As far back as John Locke, the defenders of “liberty” have told just-so stories about the “state of Nature” that existed prior to government. But there’s one aspect of the state of Nature they always leave out: The state of Nature offered full employment. The means of production were the lakes and plains and jungles where anyone could go hunt and gather. But a system in which even the groundwater is private property, whose owners have the “liberty” to do what they want with it — not only free from government interference, but with government controlling anybody else who tries to interfere — that’s not a state of Nature. That’s a very unnatural state indeed.

So here’s what I recommend for Thanksgiving: Sure, count your blessings, but also count your privileges — and don’t confuse the two. And sure, resolve to give more to charity, but resolve even harder to use your privileges and powers and out-sized access to work for changing the system.


PeaceBang declares a pre-Thanksgiving Moment of Whining.


Vi Ransel writes: “You can’t ignore the class war (by claiming you’re not into politics).”


My Reservations About the Market Economy

How restaurants take reservations may not seem like typical topic for the Sift, but bear with me on this. A recent article about this particular niche of the economy says something interesting about how the economy as a whole works.

OpenTable.com is a service that allows you to make restaurant reservations online. It claims to handle 15,000 restaurants, and though it seems concentrated on upscale restaurants in the major cities, its reach extends all the way up here to Nashua, NH. It provides reservation-tracking software to restaurants. Its web site lets prospective diners check which of their favorite restaurants have tables open, and helps travelers find restaurants in unfamiliar neighborhoods.

Diners pay nothing, and in fact get loyalty points (exchangeable for free meals) for booking with Open Table. They also get to rate restaurants and see the ratings and comments of other diners. Restaurants pay installation costs, monthly membership fees, and a fee for each reservation. The business model seems to work. Open Table went public in 2009 and (at Friday’s closing price of $67.83) has a market capitalization of $1.6 billion. (That’s a little over $100,000 per restaurant. Hmmm.)

Services like this benefit from what is called a “network effect”. In other words, each user makes it more valuable for all the other users. (The standard example of a network effect is a phone system. If you’re the only person on a phone network, there’s nobody you can call. You want to be on the network that everybody else is on.) A small table-reservation service is quirky and has patchy coverage. But a big one has lots of restaurants, lots of ratings, lots of comments, and the resources to put all the latest bells and whistles on its web site. The more you use it, the better it gets at recommending restaurants you’ll like and tailoring promotions to your tastes.

Left to their own devices, markets with a strong network effect tend toward monopoly — one network to rule them all. As this happens, the power relationship changes: Rather than simply connecting diners to restaurants, Open Table is becoming a gatekeeper. It controls the relationship with the customer. It decides which restaurants succeed or fail.

Restauranteurs are starting to see the writing on the wall. In a post that gives a fascinating glimpse into the restaurants’ side of this relationship, San Francisco restauranteur Mark Pastore asks:

Have the ascent of OpenTable and its astronomical market value resulted from delivering $1.5 [now $1.6] billion in value to its paying clients, or by cunningly diverting that value from them? What does the hegemony of OpenTable mean both for restaurants and for the dining public in the long run?

He asked a dozen of his fellow restauranteurs in SF and New York about Open Table, and found only one who was happy. The others report feeling “trapped” and one says that his payments to Open Table amount to more than he makes from his 80 hours a week spent running the restaurant.

You see, once a service approaches monopoly, the dark side of the network effect appears: When only a few restaurants had Open Table, they might imagine that it was delivering new customers to them. But if all the restaurants have it, it’s just shuffling customers around. Checking Open Table might cause you to book with Amelio’s rather than Antonio’s, but you were going out to eat somewhere anyway, and you probably would have spent just as much money. At that point, Open Table’s fees are just siphoned out of the restaurant system without providing any systemic value.

Pastore concludes:

by permitting a third party to own and control access to the customer database, restaurants have unwittingly paid while giving away one of the crown jewels of their business, their customers.

And customers, by taking advantage of the short-term freebies Open Table provides, may ultimately wind up with fewer choices: If restaurants are less profitable, more will close. It’s already a tough business, and anything that makes it tougher is bound to push marginally profitable restaurants over the edge.

So I’m finally able to explain why this is a Sift topic: When people defend our skewed distribution of wealth or argue that the rich should pay lower taxes, their rhetoric usually implies that the free market rewards the “productive” members of society. But when you look into markets more deeply, that’s obviously false.

Think about the best restaurant meal you’ve ever eaten. Who should you thank for producing that experience? The master chef who perfected the recipe, the production chef who prepared your meal, the waiter/waitress who took care of you, the farmers who raised the ingredients, and even (though you probably never think about this) the cleaning staff. You might also thank the owner, who in a small restaurant was probably one or more of the people I’ve already listed.

But none of those people — probably not even the owner, the “small businessman” that conservative rhetoric idolizes — is making much money. None of them approach the wealth of Open Table’s founders, or even of the investment banker who managed Open Table’s IPO, or the speculators who have run up its stock price.

You see, our market economy doesn’t reward producers, it rewards gatekeepers. You don’t make money by building roads. You make money by finding (or creating) bottlenecks and setting up toll booths.


This weekend I happened to talk to someone with second-hand knowledge of a small publisher’s attempt to get into e-books. The number of hurdles to jump is enormous — unless they go through Amazon, which siphons off at least 30% of the list price — practically the entire profit margin. The producers — the authors, editors, and even publishers — won’t make nearly so much money on the books as Amazon will.



Short Notes

You didn’t hear about this contest in time either, did you? Kate McGroarty won a chance to live at Chicago’s Museum of Science and Industry for a month.


Salon’s Mary Elizabeth Williams’ reaction to celebrity infidelity is like mine: I have long understood that famous people shouldn’t be our moral role models, but do they have to be so stupid about it?


This is how voter suppression works. The non-existent voter fraud problem gets all the media attention, but in every election real people get intimidated out of voting, or just run through enough hassles that they give up.


The NYT has an online gadget that helps you build your own balance-the-budget plan. It’s not perfect, but it forces people to get real. Want to eliminate earmarks? Cut foreign aid in half? Reform malpractice suits? Good for you: You’re 3% of the way there.


Matt Yglesias brings some uncommon sense to the deficit discussion.

the key thing for any fiscal adjustment plan to say on the cut side isn’t really how much money you’re cutting, it’s what things do you want the government to stop doing. Once you name the things, you can total up the savings. Then you can either say you’ve cut enough, or else you can go back and name more things.

Hence his reaction to the idea that the Smithsonian should charge admission: It costs a lot to assemble and maintain the Smithsonian collection, but almost nothing to let one more person see it.

presumably “people might visit the museum” is high on the list of possible benefits of having a National Gallery of Art. What you would ideally do with these kind of public services—be it a museum or a subway or whatever—is take a good hard look at whether or not you really believe in providing the service. And if you do, you provide it for free so that as many people as possible can benefit. If you develop a problem of overcrowding, then you start charging admission to ration capacity.

Instead of this kind of thinking, we talk about budget caps, hiring freezes, across-the-board cuts and everything but asking questions like: “Do we want to keep fighting in Afghanistan?”


You don’t have to deny global warming to become a Republican Congressman. But you do need to deny global warming to stay a Republican Congressman.


Cyberwar isn’t just science fiction any more. It looks like the Israelis unleashed a viral worm that was supposed to find its way into Iranian centrifuge controllers and wreck the equipment. No sign that it worked, but it’s hard to be sure.

I’m not going to criticize the Israelis for this, because there’s already some kind of proxy war going on between them and the Iranians, via Hezbollah. But I hope the US is careful about dabbling in cyber attacks. We have a way of kidding ourselves, imagining that we can do some whiz-bang thing and no one could possibly retaliate. Then when someone does find a way to retaliate, we imagine that they’re madmen who hate us for no reason.


The Obama administration may have moved on, but the rest of the world still thinks we have a treaty obligation to investigate torture during the Bush years. The UN’s Juan Ernesto Mendez, himself a victim of torture in Argentina in the 1970s, says: “There has to be a more serious inquiry into what happened and by whose orders… .It doesn’t need to be seen to be partisan or vindictive, just an obligation to follow where the evidence leads.”


Excerpts of Sarah Palin’s new book are bouncing around. I particularly like this one:

The second reason the charge of racism is leveled at patriotic Americans so often is that the people making the charge actually believe it. They think America — at least America as it currently exists — is a fundamentally unjust and unequal country. Barack Obama seems to believe this too.

Because, unlike any other place where 1% of the people suck up 24% of the income and 1 out of 9 black men between ages 20 and 34 is in jail, America is a just and equal country. It’s weird that Obama wouldn’t know such an obvious thing about the nation he’s president of.


The previous note is an example of my new resolution: I will stop using the word earn when talking about people with very high incomes. Seven hedge fund managers received $1 billion in 2009. I don’t think anyone earned $1 billion in 2009.

I’m not sure how they could. Suppose you work 100 hours a week 50 weeks a year. Even with that kind of work ethic, a billion dollars is $200,000 an hour. Seriously, don’t you think somebody somewhere would be willing to do your job for $100,000 an hour?


A stunningly perfect bit of terminology: Those inauthentic “I don’t want to say X, but … ” intros are called but-heads.


Even if the jobs come back the wage cuts are permanent.


47 years ago today: JFK is killed. I think my first “public” memory is watching Jack Ruby shoot Lee Harvey Oswald on live TV two days later.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or follow the Sift’s Facebook page.

Shell Game

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2010%2F11%2Fshell-game.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth … to provide men with buying power equal to the amount of goods and services offered by the nation’s economic machinery. Instead of achieving that kind of distribution, a giant suction pump had by 1929-1930 drawn into a few hands an increasing portion of the currently produced wealth. … In consequence, as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped. Marriner Eccles, chairman of the Federal Reserve 1934-1948

In this week’s Sift:

  • The Deficit Shell Game. For years we’ve been borrowing money to give tax cuts to the rich. Now the chairs of the  Deficit Reduction Panel are delivering the bill to the middle class.
  • The Sift Bookshelf: Aftershock by Robert Reich. A skewed distribution of wealth isn’t just unfair, it’s bad for the economy.
  • Political Notes. I don’t have a Big Theory about the meaning of the midterm elections. But I do know a few lesser things.
  • Short Notes. Maddow interviews Stewart. Don’t get leukemia in Texas. Scientists discover new reptiles in restaurants. The Chinese are serious about clean coal. Why Glenn Beck is not (quite) an anti-Semite. What comic books can tell us about religion. And more.


The Deficit Shell Game

Suppose a major political party went to voters with this message: “We’re going shrink every program that the middle class and the poor depend on: Social Security, Medicare, unemployment compensation, Medicaid, and so on. And with the money saved from those cuts, we’ll give big tax cuts to the rich.”

It would never fly. Rich people would support it, of course, and the party might get as much as 30-40% of the vote if they successfully demonized their opponents. But the bald message that the rich should have more and everyone else less has never been popular.

But here’s a funny thing: If you split the proposal by putting the word deficit in the middle, and if you’re careful not to discuss the two halves of your program in the same conversation, people go for it.

In Step 1, you promote tax cuts that throw a few pennies to everyone, but are focused on the rich. At this point in the process you argue that taxes are bad, because the people who earn money should get to keep it. You paint the Government as a huge black hole that eats up money without anything ever coming out. If pressed, you pledge to cut “spending” — that amorphous mass of “waste” that could go away without hurting anybody.

Then, after you get your tax cuts passed, you come back a few months later with Step 2: “Oh my God! There’s a deficit!” Because of course no one could have predicted that cutting taxes would lead to less revenue and more borrowing.

Suddenly the deficit — which you carefully kept out of the conversation when you were talking about tax cuts — is the Worst Problem Ever. And now that we’re distributing pain instead of bushels of money, everybody is in this together. Suddenly there is no “waste” to cut effortlessly. We all have to “tighten our belts”. The government has “made promises it can’t keep” (at least not at this tax level), so programs will have to be cut across the board — especially the entitlements that go mostly to the middle class.

The latest version of this shell game — the proposal from the “bipartisan” chairs of the Deficit Reduction Panel — is the most blatant I’ve ever seen. If you look at their slide show, you’ll find proposals to cut everything under the Sun — including rich people’s taxes. The slides say that “It is cruelly wrong to make promises we can’t keep” and “A sensible, real plan requires shared sacrifice – and Washington should lead the way and tighten its belt.”

Washington here is a euphemism for people who were counting on government programs — old people, sick people, veterans, the unemployed, and so on. They — and not the rich — need to tighten their belts. While the middle class has to figure out how to retire later, co-pay more of their Medicare expenses, and do without a bunch of other benefits, the tax rate paid by the richest Americans falls from 35% (currently) or 39.6% (if the Bush tax cuts aren’t extended) to 23%. And the corporate tax rate falls from 35% to 26%. Paul Krugman sums up:

this proposal clearly represents a major transfer of income upward, from the middle class to a small minority of wealthy Americans. And what does any of this have to do with deficit reduction?


Amusingly, on the same day I started writing this article, La Feminista made the same point, even using the same term “shell game” to describe it.

A more intellectual critique of the government-has-to-tighten-its-belt approach is Daniel Greenwood’s Prosperity Comes From Justice, Not Austerity in Dissent.



The Sift Bookshelf: Aftershock by Robert Reich

The books I’ve reviewed lately all share a theme: the distribution of wealth. Winner-Take-All Politics described just how skewed the distribution has gotten, and how government policies have helped the ultra-rich pull away from everyone else. Were You Born on the Wrong Continent?demonstrated that it doesn’t have to be that way by using the example of Europe: A 21st-century economy can provide a decent life for everyone. Health care can be a right. Workers can have a say in how their workplaces are organized. Consumption can focus more on public goods like parks and less on private goods like estates. It works.

Now Robert Reich has come out with Aftershock: The Next Economy and America’s Future. Reich is coming at the same message from the opposite direction: The winner-take-all economy doesn’t work, even on its own terms. He makes this point by comparing three eras in American history:

  • 1975-to-now, when wealth has been concentrating;
  • a similar period in the 1920s, leading up to the Great Depression;
  • what he calls the Great Prosperity, the 1948-1975 period when wealth was spreading out

The singular virtue of the Great Prosperity was that supply and demand matched, and each pushed the other higher. In a healthy industrial economy, mass production and mass consumption go together. The people who make things earn enough money to buy the things they make. Carpenters can afford houses. Auto workers can afford new cars.

But when the distribution of income gets too skewed towards the rich, you get the bubble economy of the 20s and the last two decades. The financial economy separates from the real economy and goes through a series of speculative booms and busts.

The best account of the boom-bust cycles of the 20s is Fred Lewis Allen’s classic Only Yesterday, which looks back on the 20s from the sadder-but-wiser perspective of the Depression.

After the Florida hurricane, real-estate speculation lost most of its interest for the ordinary man and woman. Few of them were much concerned, except as householders or as spectators, with the building of suburban developments or of forty-story experiments in modernist architecture. Yet the national speculative fever which had turned their eyes and their cash to the Florida Gold Coast in 1925 was not chilled; it was merely checked. Florida house-lots were a bad bet? Very well, then, said a public still enthralled by the radiant possibilities of Coolidge Prosperity: what else was there to bet on?

That’s not just a coincidence; Bubbles are a predictable feature of an economy skewed towards the rich. Reich does an excellent job of explaining why.

Stop me if you’ve heard this. I’ve used this example before to explain the illusion of saving money, and how that makes the financial economy different from the real economy. If it’s obvious to you, skip to the next section.

Before money came into the picture, “saving” meant putting aside real goods. You spent the harvest season stockpiling and canning and preserving so that you could eat through the winter.

Compare that to what might happen today: All summer a college student makes pizzas and saves money. All winter he spends his saved-up money buying pizzas. On the surface this pattern resembles the canning-and-preserving practice, but all those summer pizzas got eaten or thrown away during the summer. No pizzas were put aside, only money.

That’s typical. When you save money, your “savings” is an illusion of the financial economy; the real economy isn’t saving anything. What makes this trick work is the banking system: It circulates your saved money by loaning it to people who will spend it, either to consume something they hope to pay for later, or to invest in something they hope will be productive someday.

Excess saving leads to depression. But everything falls apart if everyone tries to save money at the same time. Because then the only way to work things out is to stop production. (No matter how many people want to make pizzas, if no one is willing to buy them, even on credit, the pizza shop closes.) This can turn into a vicious cycle: Falling production means falling profits and people getting laid off. That scares the people who still have jobs, who save more; and it intimidates the people who might invest in new production, because they don’t see who they’re going to sell their new products to.

Concentrated wealth and bubbles. Now think about what happens when too much of an economy’s income goes to the ultra-rich. The kind of money the ultra-rich make isn’t consumable. (In 2009, the top seven hedge fund managers each made over $1 billion. You just can’t spend that kind of money.) So it gets saved.

If production isn’t going to drop, that saving has to get borrowed and spent by someone else. But who? There’s a limit to how much debt the middle class can carry, so ultimately the savings of the ultra-rich has to be borrowed by other ultra-rich people. We’ve already seen that they can’t consume their income, so they will have to invest it. But in what? If they invest it in increasing production — new factories, new shops, new services — that just kicks the can down the road. Who do they imagine is going to buy their increased production when it comes on line?

Consequently, the money has to go into bubbles: Speculators borrow to bid up the prices of non-productive assets. That’s not some strange accident; it’s what has to happen when the distribution of income gets too far out of whack.

So in the 20s you had a series of land bubbles — Florida, the suburbs — followed by the stock market bubble that popped in 1929. (Stock market bubbles look like productive investments, but they’re really not. Only money invested in new stock goes into the real economy in the form of new factories, shops, and services. Otherwise you’re just bidding up the price of existing assets and not increasing production.) Or, more recently, you get bubbles in internet stocks or houses or gold or oil.

The basic bargain. World War II was the biggest unintentional redistribution of wealth in American history. That’s what ended the Depression. By taxing and borrowing, the government collected massive amounts of money from the rich and paid it out to soldiers and factory workers and farmers and miners.

After the war, veterans benefits together with the legal and social mechanisms established during the New Deal kept the money from flowing back to the rich: not just high taxes on high incomes (tax rates topped out over 90% and stayed that way until the 60s), but educational benefits, Social Security, unemployment insurance, and laws that made it easy to form unions.

The result was what Reich calls the Basic Bargain: If you participate in mass production, you should make enough money to participate in mass consumption. That bargain was the basis for the most widely-shared prosperity in American history.

Since Ronald Reagan we’ve been undoing that bargain, with the result that wages have stagnated even while productivity grows. The pie is bigger, but workers get an ever-smaller slice. At first, middle class households kept spending by sending more women into the workforce. Then they kept spending by borrowing against the bubble-inflated value of their homes. In 2008 their credit ran out and the game stopped: Middle class demand can’t drive the growth of the economy any more.

Restoring the basic bargain. Reich closes with a number of proposals, some of which (like a carbon tax) are more generically liberal than related to the case he has been making.  But his largest proposals are a reverse income tax (sharply higher rates for the rich combined with wage subsidies for the working poor), extending Medicare to everybody, and increasing spending on public goods like parks, libraries, and public transportation.


Unions are a key part of the case Reich is making, but he says little about changing the labor laws. I think labor-law reform is an important part of solving the income-concentration problem.

Think about what a “good job” is. In the collective discussion about the working class, we’ve tended to use the terms good job and manufacturing job interchangeably, as if there were something magical about factories that can’t be duplicated in service industries.

But the magic of the factory jobs of the 50s, 60s, and 70s was this: They were in unionized industries where wage increases could be absorbed by the owner or passed on to the customer. Many service jobs could fit this description, if its workers were organized.

For example, consider baristas at Starbucks. Payscale.com estimates that they average $8.63 an hour. (A Starbucks store manager gets only $13.) But the price of a cinnamon dolce latte has nothing to do with the cost of making it, and there’s no reason that an organized workforce couldn’t force a better deal out of the company. (Some workers are trying.) A cashier at Whole Foods — another place where prices have little to do with cost — starts around $8 an hour and averages about $10.

No law of economics says that retail and other service jobs can’t be good jobs. Workers just need to organize across entire industries, so that non-union stores can’t gain an advantage over union stores. (That’s hard, but government help would make it easier, if government got back to representing people instead of money.) Prices at Wal-Mart would go up, but we might have a stable middle class again, and a growing economy.



Political Notes

For the last two weeks the airwaves have been full of speculation about what the mid-term elections meant and what will happen now that the Republicans control the House. I don’t have a Big Theory that explains it all and tells us what to do next, but I do know a few things:

The voters rejected a straw man. I’m reminded of 2002 and 2004, when voters were still blaming Saddam for 9-11. Voters this year believed all kinds of false things: that Obama had raised taxes when he had in fact cut them; that health care reform raises the deficit when it actually lowers it; that government is growing like a tumor, when both federal spending and the number of government employees dropped in fiscal 2010. And let’s not even get into the numbers of voters who believe that Obama is Marxist Kenyan Muslim imposter.

It’s hard to know what to do with that. People who argue that Obama should “move to the center” seem to imagine that more conservative policies won’t or can’t be painted as the beginning of the Communist revolution. But you would have thought that about using Mitt Romney’s health-care ideas, too. Whatever you do, people can lie about it if they want to.

It’s not 1995. The Gingrich Revolt of 1994 foundered when the Republican Congress shut down the government in 1995. People don’t like the idea that their Social Security checks will be late, and they mostly blamed the Republicans.

But Fox News didn’t launch until 1996. Today a powerful conservative media machine will justify whatever the Republicans do. If they shut down the government (in February, when Congress will need to raise the ceiling on the national debt), no one knows who the public will blame.

If there is a government shut-down, watch the stock market. The Republicans will not bat an eye if grandmothers are begging on the streets, but if the stock market plunges they’ll have to do something.

Or maybe it is 1995. I expect a series of pointless investigations as the Republicans search for some excuse to impeach Obama. If they follow the Clinton-era pattern, they’ll raise a lot of Fantasy-gate issues hoping to stop Obama’s re-election, then move towards impeachment if that doesn’t work.

The Republicans ran on nothing, and have no agenda now. The closest thing they had to a policy proposal was “cut spending”. They never specified what spending, and there aren’t several thousand bridges-to-nowhere they can cancel. Any major spending cut means changing policies that the American people support, like raising the retirement age.

You can’t compromise with “there’s no problem”. Democrats want to do something about people without health insurance and Republicans don’t. Democrats want to do something about global warming and Republicans don’t. Where can they compromise?



Short Notes

Thursday night my two favorite TV hosts were on the same screen: Rachel Maddow interviewed Jon Stewart.


Stephen Colbert interviews the head of the last American manufacturer of marbles, and finds out that Obamacare is actually good for small business.


If you’re a biologist hoping to catalog a previously unknown species of lizard, where should you look? Try a menu.


American Prospect’s Gabriel Arana explains why the bullying gay teens face is different:

It’s not just the schoolyard jerk who picks on you. It’s the pastor who rails against the “gay agenda” on Sunday, the parent who stands up at a city council meeting and says he moved to your city because it’s “the kind of place that would never accept the GLBT community with open arms,” and politicians like New York’s would-be governor Carl Paladino, who on the campaign trail said things like “there is nothing to be proud of in being a dysfunctional homosexual.” Even once you get past high school, you still can’t get married or serve in the military, and in most states, your employer can fire you just for being gay. This is the kind of “bullying” gay kids face, and it’s the kind no one’s standing up to.


I had two preconceptions when I started reading this article: James Fallows is a serious guy, and clean coal is not a serious idea. Something had to give.

The gist: The Chinese have done the math, and no credible quantity of alternative energy will allow their billion-plus people to join the 21st century. Oil is eventually going to run out, so either they’re going to figure out how to burn coal cleanly, or they’re going to wreck the planet. That vision gives their research an urgency that American research lacks.


Glenn Beck isn’t an anti-Semite. He just uses anti-Semitic stereotypes to demonize Jews he doesn’t like. See the difference?


The Daily Show explains why Missouri’s new ban on “puppy mills” (huge warehouses raising dogs for sale) is a step on the road to Communism. (Includes a guest appearance by the Dog Whisperer, Cesar Millan.)


The next time someone tells you that our health-care system is the best in the world, have them read “Too bad we can’t afford to treat your leukemia” by an anonymous Texas doctor.


If a generation of kids expected something different from superheroes twenty years ago, maybe they’ll expect something different from religion now that they’re adults. At least that’s what I claim in the current issue of UU World.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or keep up with the Sift on Facebook.

Beating Ourselves

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2010%2F10%2Fbeating-ourselves.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

Remember this: The house doesn’t beat the player. It just gives him an opportunity to beat himself.

Nick the Greek, charter member of the Poker Hall of Fame

In this week’s Sift:

  • Fire and Health and Government. Libertarianism boils down this image: Firefighters watching a Tennessee house burn down because the owners hadn’t paid a $75 fee. This story has gotten a lot of coverage, but few people are making the connection to the health insurance mandate. Whether the threat is sickness or fire, we shouldn’t offer our fellow citizens a gamble that we’re not willing to watch them lose.
  • Sharia in America? Sharron Angle has added the weight of a viable Senate candidate to the bizarre claim that Sharia is taking over the United States. What is she talking about?
  • The Anti-Stimulus Begins. All the federal stimulus ever did was balance spending cuts on the state and local level. Now that balance is ending.
  • Department of Corrections. A miscalculation caused me to understate last week’s point about government spending.
  • Short Notes. The FBI can track your car without a warrant — and demand its tracker back if you find it. Christine O’Donnell, I’m glad to hear, is really me; I’ve always wanted to be a senator. More about anonymous campaign spending. And everybody is just guessing about how many young adults will vote.


Fire and Health and Government

To libertarians, it’s unjust if I have to pay taxes to provide you with services. Don’t make me pay for your child’s education or to treat your infectious disease. That’s socialism. The ideal libertarian government project is a toll road, because only the people who use it have to pay for it.

A week ago Thursday (September 29), we got an example of where that kind of thinking leads: In Obion County, Tennessee, you pay a special $75 fee each year for the fire department. Gene and Paulette Cranick hadn’t paid the fee this year — Gene claims he just forgot — so when two barrels caught fire in their yard and the flames slowly spread in the direction of the house, the fire trucks wouldn’t come — at least not until the fire started to spread to the property of a fee-paying neighbor. Even after they got there, firefighters defended only the neighbor’s property while watching the Cranick’s house burn to the ground.

National Review’s Kevin Williamson comments approvingly:

The world is full of jerks, freeloaders, and ingrates — and the problems they create for themselves are their own. These free-riders have no more right to South Fulton’s firefighting services than people in Muleshoe, Texas, have to those of NYPD detectives.

The problems you create are your own: You had kids, I didn’t, so don’t make me pay for the schools. You live on the Gulf coast, I don’t, so don’t make me pay to send helicopters when the hurricanes come. Your daughter was born with a congenital disease, mine is nice and healthy, so don’t send me any medical bills. You care about nature, I don’t, so don’t charge me for the national parks. And on and on and on.

Several conservative bloggers have patiently explained the pay-to-spray system to us effete urban liberals. Rural fire departments have shoestring budgets, and they’d go under if people thought they didn’t have to pay their fees. Angry White Guy writes:

Where I live in Kentucky about 20 miles from where this story went down in Tennessee – they put the fire department fee on your property tax bill so you must to pay it if you own property – but it wasn’t always that way where I live. At one time the fee, like the fire department, was voluntary and you could either pay the fee or get hit with a huge bill if you didn’t [and called the fire department to put out a fire].  … I knew plenty of people that rolled the dice and didn’t pay hoping they didn’t have a fire and I’m guess Cranick did just that, he rolled the dice and crapped out.

Here’s an idea: Let’s fund the Homeland Security Department with a voluntary fee. If you don’t pay it, al Qaeda can blow you up.

AWG slides right by what should be the main point: “Where I live … they put the fire department fee on your property tax bill.” That’s how it should work: We all pay taxes and we all get services. Don’t offer your fellow citizens a gamble unless you’re willing to sit back and watch them lose.

OK, the Cranick’s story got a lot of coverage and you had probably heard about it already. But how many times have you heard anybody make the connection to the health insurance mandate?

The mandate is the least popular part of President Obama’s health reform bill, the part that conservatives are suing (unsuccessfully, so far) to have declared unconstitutional. Starting in 2014, if you don’t have health insurance that meets certain minimal standards, you’ll owe a tax. (The bill does not, as opponents charge, force anybody to buy health insurance. Just pay the tax and you can go on without coverage if you want. According to the Boston Globe: “Fines will vary by income and family size. For example, a single person making $45,000 would pay an extra $1,125 in taxes when the penalty is fully phased in, in 2016.”)

But the logic is exactly the same as the firefighting fee: We don’t want you to gamble on medical care, because we don’t want to be the kind of country that will sit back and watch you lose that gamble. If you get into a car wreck, we want the ambulances to come and the EMTs to stop the bleeding. We want the emergency room doctors do what they can to save your life. We don’t want medical professionals to stand around while somebody checks whether your fees are paid up, or to watch you die if they aren’t.

Right now those emergency costs fall mostly on hospitals, who overcharge the rest of us to cover it. (That’s why a hospital aspirin can cost $18.) Slower medical emergencies like cancer play out in a variety of ways, some of which include people dying of treatable diseases. (The technical term is “amenable mortality“. Our rate is among the worst in the developed world, and is improving more slowly than most comparable countries. Dr. Don McCanne of Physicians for a National Health Program comments: “Those who still claim that the United States has the best health care system in the world need a reality check.”)

In a libertarian world, though, nobody would pay for those services if you gambled that you wouldn’t need them. (Maybe you decided to buy food for your family instead.) You got into a car wreck, I didn’t, so why should I pay?


We hear a lot about rugged individualism being the American way. This week, while researching something else, I discovered a funny thing about that.

In volume II of the classic Democracy in America, French observer Alexis de Tocqueville feels it necessary to explain the difference between individualism and egotism:

Egotism is a passionate and exaggerated love of self, which leads a man to connect everything with his own person, and to prefer himself to everything in the world. Individualism is a mature and calm feeling, which disposes each member of the community to sever himself from the mass of his fellow-creatures; and to draw apart with his family and his friends; so that, after he has thus formed a little circle of his own, he willingly leaves society at large to itself.

In spite of that “mature and calm” stuff, de Tocqueville goes on to trash individualism as one of the bad effects of democracy. But here’s the kicker: That passage is followed by the original translator’s note saying that he has adopted de Tocqueville’s coinage of individualism “because I know of no English word exactly equivalent to the expression”.

So, not only did the Founders not consciously think of themselves as individualists, English didn’t acquire the word individualism until 1840 — when we borrowed it from the French.


District Court Judge George Steeh’s rejection of the suit against the health care mandate makes a good point. The plaintiff’s argument is that the Commerce Clause of the Constitution has never before been used to regulate inactivity — in this case, a person’s decision not to buy health insurance. Judge Steeh observes:

The plaintiffs have not opted out of the health care services market because, as living, breathing beings, who do not oppose medical services on religious grounds, they cannot opt out of this market. As inseparable and integral members of the health care services market, plaintiffs have made a choice regarding the method of payment for the services they expect to receive.

In other words, the relevant market is the market for health care, not health insurance, which is just a mechanism for paying for care. People can choose not to buy health insurance, but they can’t choose not to get sick.


A new report published in Health Affairs expands on Dr. McCanne’s “reality check”. In 1950, the US was fifth in female life expectancy at birth. Now we’re 46th, despite spending significantly more per capita on health care than any other country.

Defenders of the status quo offer a variety of explanations other than our-non-socialized-medicine-sucks: lifestyle choices, the way our statistics are reported, murder and suicide, and so on. The authors of this report did a variety of tricks to eliminate these effects. Conclusion:

We found that none of the prevailing excuses for the poor performance of the US health care system are likely to be valid. … We speculate that the nature of our health care system—specifically, its reliance on unregulated fee-for-service and specialty care—may explain both the increased spending and the relative deterioration in survival that we observed. If so, meaningful reform may not only save money over the long term, it may also save lives.



Sharia in America?

One of the more bizarre and baseless claims you’ll find if you wander around the conservative blogosphere is that foreign law is taking over America. Originally, we were being taken over by European law. The National Review’s Ed Whelan put it like this:

What judicial transnationalism is really all about is depriving American citizens of their powers of representative government by selectively imposing on them the favored policies of Europe’s leftist elites.

The American Spectator characterized a death penalty decision:

Rather than base their ruling on the original meaning of the Eighth Amendment, the five justices of the majority instead imposed foreign standards on American citizens in the name of our Constitution. In doing so, the Court audaciously elevated international mores above the considered democratic judgment of the states and called it “law.”

This longstanding kerfuffle on the Right is based on more-or-less nothing. (A good article on “bad history” and “bad law” behind the controversy is here.)

Well, lately it’s Muslim Sharia law that is supposedly taking over. Nevada Senate candidate Sharron Angle seems to be saying that sharia law is taking hold in Dearborn, Michigan and Frankford, Texas. (I say “seems” because — as is typical in such cases — she is alluding to something she never says in so many words. Ibrahim Hooper of the Council on American-Islamic Relations described her statement as “incoherent bigotry“.)

It would be strange enough if Angle was making this stuff up — a Tea Party candidate making stuff up, who could imagine? — but she’s not. She’s just raising this strange conspiracy theory from the shadows of the internet to the national stage.

The basis of the “Sharia law in Dearborn” claim is this ten-minute video, which (to my eye) shows security guards at Arab Festival 2009 in Dearborn behaving the way festival security guards do everywhere: In a dispute between the exhibitors and trouble-making attendees, they take the side of the exhibitors. But the exhibitors are Muslims and the contentious attendees are Christians, so the security guards must be enforcing Sharia, which must have a whole section on street festivals or something.

The Texas claim seems to come from two incidents. One is a Texas court ruling that if people by mutual consent want to specify in their contracts that disputes will be adjudicated in a Sharia court or in accordance with the principles of Sharia, they can. (That’s no different than any other mediation clause. Any other finding would be discrimination against Islam.) The second is a story of an “honor killing” of two sisters by their father — but Texas law did not sanction his actions. I have found no example in Texas (or any other state) of government officials forcing Sharia on somebody who didn’t contractually opt for it.

Of stuff like this, myths are made. And now those myths are being repeated by someone with a serious chance to sit in the Senate.

But here’s the head-shaking thing: There really is a significant movement in America that wants a scripture-based law to replace the Constitution. But it’s not Islam, it’s Christian Reconstructionism.



The Anti-Stimulus Begins

Ask anybody and they’ll tell you: We’ve had a wild increase in government spending since Obama took office, with the $800 billion stimulus bill being the biggest piece of it.

Ask anybody who isn’t an economist, and they’ll tell you that it hasn’t worked. With all this stimulus spending — $300 billion of which was really tax cuts — we haven’t created any jobs.

But that’s not exactly what happened. It’s not even close. While the federal government was spending more to stimulate the economy, state and local governments (most of whom were obligated to balance their budgets in the face of declining revenue) were cutting back, making the net effect negative. Paul Krugman writes:

Consider, in particular, one fact that might surprise you: The total number of government workers in America has been falling, not rising, under Mr. Obama. A small increase in federal employment was swamped by sharp declines at the state and local level — most notably, by layoffs of schoolteachers. Total government payrolls have fallen by more than 350,000 since January 2009.

Looking at the public sector as a whole, then, there never was a stimulus. So we have no idea what a government stimulus would have done.

But the ask-anybody consensus is that stimulus happened and failed, so Congress didn’t even come close to passing a son-of-stimulus bill. So the federal money is running out now, but the state cutbacks are not.

Thursday, New Jersey Governor Chris Christie canceled a multi-billion-dollar project to build a new rail tunnel to Manhattan. The project makes both short-term and long-term sense: It provides jobs now and will be a valuable addition to the regional infrastructure when it’s finished. But so what? There’s no money. Bob Herbert commentss:

Where once we were the innovators, the pathfinders, the model for the rest of the world, now we just can’t seem to get it done. We can’t put the population to work, or get the kids through college, or raise the living standards of the middle class and the poor. We can’t rebuild the infrastructure or curb our destructive overreliance on fossil fuels.

Similar but smaller cancelations and lay-offs are happening all over the country. Without a federal attempt to balance the scales, government employment is going to drop further. And all the while, the mainstream narrative is going to be that a government stimulus was tried but failed.


Citizen K makes a related point I’ve made here before: We’re acting like a poor country, when actually we’re a rich country dominated by rich people who don’t want to pay taxes. That’s the reason we can’t have first-rate infrastructure like the Chinese, Japanese, and Europeans are building.



Department of Corrections

I once heard a comedian say, “I’m never wrong. I thought I was wrong once, but I was mistaken.”

Well, last week’s article on federal spending was right in the first draft. And then I checked the numbers just before posting, decided they were wrong, and “fixed” them. But I was mistaken. The blog entry has been updated, but the people who get the Sift by email got the wrong numbers.

Here’s what happened: I mentioned interest on the national debt first, then forgot to add it in afterward. When you do add it in, all the revenue is spent — exactly — after you fund interest, defense, homeland security, Social Security, Medicare, disaster relief, veterans benefits, unemployment compensation, and SCHIP. So all the 2010 revenue could have been spent without using a dime for poverty programs (Medicaid, food stamps, etc.), non-military foreign aid, or any of the other stuff that many people seem to think the government spends all its money on.



Short Notes

So the FBI puts a tracking device on a 20-year-old’s car. When his mechanic finds it and his friend posts a what’s-this photo on the web, agents show up demanding their property back. No fair — there ought to be a finders-keepers rule here.

Nobody seems to know whether the FBI had a warrant, but it turns out they don’t need one. An appeals court has ruled that the government can put a tracker on your car without a warrant, even if it’s parked in your own driveway when they do it.


I’m relieved to hear that Christine O’Donnell is really me and will go to Washington and do what I would do. I was afraid she was really Christine O’Donnell and would go to Washington and do all the crazy stuff O’Donnell has been saying she wants to do.

O’Donnell’s ad cries out for parody, and its cries have been answered. This is my favorite so far. Or maybe this one.

You know who really ought to be upset about Christine O’Donnell’s comments about witchcraft? Witches.


The anonymous funding of political campaigns that I talked about last week is getting increasing attention. A Public Citizen report says that in the last mid-term election cycle, 30 out of 31 electioneering groups disclosed their donors. As of September 2 of this year, only 7 of 22 groups had.

A NYT reporter says spending by such groups is already double 2006’s total. He recounts his attempts to figure out who was behind a particularly striking set of ads: the talking babies against Obamacare. They’re sponsored by the Coalition to Protect Seniors, which is … who exactly? He can’t figure it out, but the phone numbers he finds on official documents ring through to people somehow involved in the health insurance industry.


The main reason national polls are all over the map is that each organization has its own “likely voter” model. In other words, if X % of 20-somethings tell you they’re going to vote Republican, you want to weigh that not by the number of 20-somethings in the population, but by the number that you think are going to vote.

But that’s something nobody knows. Young adult turnout was exceptionally high in 2008. Is that a blip or a trend? DailyKos’ Meteor Blades talks this issue through in Millennials: Will they, or won’t they?

I’m guessing that this year’s youth turn-out will be bigger than most people expect. Reason: social networking makes it easier for the one activist in a group of friends to nag the rest into voting. “OK already. I voted. Leave me alone.”

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or help me figure out what to do with the Sift’s Facebook page.

Conspiracies and Cock-ups

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2010%2F10%2Fconspiracies-and-cock-ups.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

Many journalists have fallen for the conspiracy theory of government. I do assure you that they would produce more accurate work if they adhered to the cock-up theory.

— Bernard Ingham, press secretary to Margaret Thatcher

In this week’s Sift:

  • Quotations of Chairman Anonymous. American movies and novels and paranoid screeds love to imagine an anonymous oligarchy: some tiny cell of nameless freemasons or immortals or aliens who really pull the strings. Well, thanks to the Supreme Court we have a real one now: Through front groups, a few rich anonymous donors may decide our elections.
  • Gaza Update. A UN report on the Gaza flotilla looks bad for Israel, but another report is still coming.
  • Spending. Politicians get away with vague calls to “cut spending” because most Americans have no idea how much the government spends or what it spends on. If you go down the list of sacred-cow programs, you don’t get far before you run out of revenue.
  • Rick Sanchez. The stupid thing he said about Jews got all the press, but the point his interviewer couldn’t hear about class is more interesting to me.
  • Short Notes. Bill Gates’ dad gets soaked and likes it. Donald Duck listens to Glenn Beck. Social networking as a political tool. Defending the stimulus. Latest polls. The phony ACORN pimp’s strange new scheme goes awry. And more.


Quotations of Chairman Anonymous

American pop culture is full of anonymous oligarchies: vampires, cyborgs, aliens, immortals, ascended masters of some mystical discipline — we can’t get enough of the idea that a tiny class of powerful beings is secretly living among us and pulling the strings. Sometimes the motif jumps out of our fiction and becomes an actual hallucination: Opus Dei, Elders of Zion, Freemasons, the Trilateral Commission — they must be the ones who really run things.

Well, this year the holes the Supreme Court has punched in campaign finance law (and Congress’ inability to fill them) have given us a real, live anonymous oligarchy. We can point to their actions, but we can’t say who they are.

Blue Oregon reports what is happening in one congressional district:

In Oregon this week … the Concerned Taxpayers of America began an ad blitz in Southern Oregon, threatening to spend unlimited amounts of money to defeat US Congressman Peter DeFazio. Though commercials will air in heavy rotation, voters will have no idea who is paying to try to influence their decisions.

Thursday Rachel Maddow did a marvelous job fleshing this story out. Concerned Taxpayers of America is front organization headquartered in a house in Washington, D.C. When Rep. DeFazio went to the house (camera crew in tow), the man living there claimed to know nothing about CTA. You can’t find CTA’s web site on Google, and when Rachel did manage to track it down, it contained no mention of rallies, members, events, or even a request to contribute. The site contained only a mission statement and purchased clip art of models who are supposed to represent “concerned taxpayers”.

CTA has already put $165,000 into ads attacking DeFazio, with more presumably to come. (DeFazio told Rachel that a complete campaign in his district typically costs about $500,000.) Given that CTA is so hard to find and isn’t soliciting contributions publicly, it’s a fair bet that their money doesn’t come from ordinary citizens of Oregon’s 4th district. So where, then? Maybe from aliens or vampires, for all we know. CTA doesn’t have to say.

Billionaires are a more likely possibility. Or corporations. News Corp., the parent company of Fox News, just gave $1 million to the U.S. Chamber of Commerce, which has been running attack ads against Democratic Senate candidates (including Paul Hodes here in New Hampshire). (The Chamber also advertised against the DISCLOSE Act, which would have made it harder to campaign anonymously through dummy organizations.) Which candidates is Fox telling the Chamber to target with its money? They don’t have to say.

When the Citizens United decision was announced, many knowledgable people assured us it was no big deal. “Corporations cannot afford to alienate customers by overt election campaigning,” Columbia law professor Henry Monaghan told the Columbia Law School Magazine.

But what if the customers — like the voters — never find out? If Exxon-Mobil advertises against an environmentalist candidate under its own name, voters at least have a chance to consider the source and discount the ads’ claims accordingly. Offended drivers could boycott Exxon stations rather than have their own money used against them politically. But if the oil is laundered out of Exxon’s money by some front organization that didn’t exist two weeks ago, what then?

Blackwater might balk at openly campaigning for a new war — and even if it did, it might create a backlash. But if it could hide behind some bogus Committee for a Non-Nuclear Iran, then why not? Political advertising could be an effective way to promote new business.

It’s easy to spin these nightmare scenarios about future campaigns, but just think about where we already are. If Peter Defazio loses to Republican Art Robinson, Robinson will owe his seat in Congress to the small number of oligarchs who put up the money for the Concerned Taxpayers of America ad blitz. Oregon voters won’t know who those people are. But Robinson will.


Cartoonist Mark Fiore lauds “Cashocracy: taking the guesswork out of democracy, one million dollars at a time.”


Think Progress points out an odd contradiction: People who identify with the Tea Party are against free trade agreements, believing that they have helped send American jobs overseas. But candidates who identify with the Tea Party strongly support free trade. Maybe the billionaires who fund the Tea Party are calling the shots, not “We the People”.



Gaza Update

Monday, the UN’s Office of the High Commissioner on Human Rights released its report on the Gaza flotilla incident. (Recall: On May 31, Israel seized six ships that were trying to bring aid to Gaza, which Israel is blockading. Violence broke out on one ship: Nine of that ship’s passengers were killed and seven Israeli commandos were injured.)

The report looks bad for Israel. The worst is on page 27:

Forensic analysis demonstrates that two of the passengers killed on the top deck received wounds compatible with being shot at close range while lying on the ground: Furkan Doğan received a bullet in the face …

Dogan was a 19-year-old Turkish-American. His death and five others are described on page 37 as “extralegal, arbitrary and summary executions”.

The pro-Israeli group CAMERA critiques the report here. The objections boil down to:

  • If any other country did the same thing, no one would care. (“It is, after all, nothing less than bigotry and injustice to consistently judge one country by a particular set of standards while failing to apply those standards to the rest of the world.”)
  • The UN report relied largely on eye-witness testimony. And since Israel was not cooperating with the investigation, that testimony was primarily from the flotilla passengers, who are anti-Israel activists. In particular, because the Israelis confiscated all video of the raid and released only carefully edited segments, the OHCHR considered the Israeli-approved videos suspect.

While the first point is probably true, it is not exactly a refutation of the report’s conclusions. The second problem is something the Israeli government brought on itself. It could have fully cooperated and released all the video. (Here’s the IDF video. The incident also launched dueling music videos: The pro-Israeli “We Con the World” and the anti-Israeli “Internet Killed Israeli PR” to the tune of “Video Killed the Radio Star”.)

A second UN investigation was announced by the Secretary General in August. Israel is reported to be cooperating with this probe. We should soon see what that cooperation amounts to and whether the resulting report comes to any different conclusions.



Spending

See update at the end of the article: It’s worse than I said.

The surest way for a candidate to get applause this season is to promise to “cut spending”. Spending is one of those words that just sounds bad. Spending is the unfortunate half of buying. We all like to get stuff, but we hate to spend.

Just about everybody can remember opening a credit card bill and saying, “I’ve got to stop spending so much.” It feels virtuous to say that, and it costs nothing. But a resolution to cut spending doesn’t leave the realm of fantasy until it starts getting specific. Until you start picking out things you can spend less on — things that you spend more than nickels and dimes on now — you haven’t gotten serious.

One reason we have such a low-quality national conversation about the federal government’s spending is that most of us have no idea how much money the government spends or what it spends it on. So people can promise to “cut spending” while simultaneously promising not to cut just about everything we actually spend money on.

So let’s lay out the basic facts with as little editorializing as possible.

First, the totals. These estimates were made in May and probably won’t match the exact numbers for fiscal year 2010, which ended Thursday. But they’re probably reasonably close.

Fiscal Year 2010.

Revenue: $2.333 trillion. Spending: $3.591 trillion. Deficit: $1.258 trillion

Now let’s drill down into the spending part, starting with the stuff that would have been hardest to cut: interest on the national debt. The only way not to spend that $136 billion would have been to declare bankruptcy.

Next come the sacred cows, most of which you can find on Table S-4 of the link above: Defense, Homeland Security, Veteran’s Benefits, Social Security, and Medicare. It’s not that there’s nothing to cut here, but when a candidate pledges to “cut spending”, he or she usually doesn’t start talking about yanking troops out of Afghanistan or making Grandma pay for her own hip replacement. (The Republicans’ Pledge to America refers to “common-sense exceptions for seniors, veterans, and our troops” before promising to “roll back government spending”.) Complaints about Homeland Security are usually that we aren’t doing enough in terms of keeping out illegal immigrants or stopping drug smuggling. I haven’t heard anybody pledge to cut down on border patrols.

Defense: $707 billion. Homeland Security: $39 billion. Veterans: $124 billion. Social Security: $696 billion. Medicare: $452 billion.

Total so far: $2.018 trillion. If we stop here and zero out everything else, we’ve got a surplus of only $315 billion. (Which is fictitious, of course. Without that additional spending the economy would have shrunk further and revenue would have dropped. But ignore that for now.) For comparison, the surplus recorded in FY 2000 under the Clinton administration was $230 billion.

Next come the relatively uncontroversial payments to people in need: disaster relief, unemployment compensation, and children’s health insurance (SCHIP). Again, it’s not that it’s impossible to cut these programs, but it’s hard to classify them as “waste”. We all want the helicopters to come if we’re stranded by a flood. Unemployment is paid out of a fund that workers and their employers paid into when they had jobs. And SCHIP takes care of sick kids whose parents can’t pay.

disasters: $11 billion. unemployment: $158 billion.  SCHIP: $10 billion.

That’s $179 billion more, so we have $136 billion left.

But we still haven’t taken care of all the sick kids, because many of them get coverage under Medicaid ($290 billion). And the rest of Medicaid is also hard to classify as “waste”. You may object to handing poor people cash that they might spend on drugs or guns, but do you really want to let them die when they get sick?

So there we are: We’ve already got a $154 billion deficit.

And there’s still nearly a trillion dollars we haven’t accounted for: It did stuff like build interstate highways and maintain the national parks, plus thousands of other things that may or may not be wasteful, depending on your point of view: NASA, NSF, EPA, CDC, food stamps, foreign aid, farm subsidies, non-veteran education, and so on. If you don’t want a deficit, you have zero all that stuff out. Not just cut the waste — zero out the whole program.

Summing up: If you were going to balance the 2010 budget without raising taxes, you’d have to cut $154 billion out of interest on the debt, Defense, Homeland Security, Social Security, Medicare, veterans’ benefits, disaster relief, SCHIP, Medicaid, and unemployment compensation. And zero out everything else the government does.

So when candidates tell you they’re going to “cut spending”, don’t let them handwave about earmarks, foreign aid, bridges to nowhere, or any other unpopular-but-trivial expense. Any serious attempt to balance the budget without raising taxes is going to involve serious cuts in programs most Americans believe in.

Update: After listing the interest on the debt, I then forgot to add it in. So the total after Defense, Homeland Security, veterans benefits, Social Security and Medicare is $2.154 trillion, leaving only $179 to spend. Then the $179 billion for disasters, SCHIP and unemployment spends all the remaining revenue. (Not a coincidence, BTW. That was my original calculation, which I then thought I found a mistake in.)

So the gist is that the revenue is gone before you spend a dime even on Medicaid.



Rick Sanchez

The story of CNN firing Rick Sanchez is getting plenty of coverage. You’ve undoubtedly already heard that he called Jon Stewart a bigot and then said this:

I’m telling you that everybody who runs CNN is a lot like Stewart, and a lot of people who run all the other networks are a lot like Stewart, and to imply that somehow they — the people in this country who are Jewish — are an oppressed minority? Yeah.

It got him fired and I have no argument with that. He should have known how close that is to an Elders-of-Zion, Jews-run-the-world conspiracy theory that a lot of dangerous people seriously believe.

Listening to larger chunks of the interview, though, I’m hearing an aspect of the story that isn’t getting any coverage: The conversation turns to race and ethnicity only because the interviewer (Pete Dominick) can’t hear the point Sanchez is trying to make about class prejudice.

Let’s start at the beginning: Dumb things that Sanchez says or does on the air are regularly lampooned on the Daily Show. That’s part of what Stewart does, and he does it to lots of news anchors — but maybe Sanchez more than most.

Early in the interview, Sanchez is trying to say that it’s way too easy for people like Stewart who grew up in educated households to dismiss everybody else as ignorant — not because those people are actually stupid, but because they haven’t been schooled in how educated people are supposed to act and sound.

So Sanchez contrasts Stewart’s father (a physics professor) with his own (a Cuban immigrant who used to “work in a factory, wash dishes, drive a truck, get spit on”). Dominick seems to have no idea what point Sanchez could be trying to make (and Sanchez isn’t very articulate about setting him straight), and can only hear the Jew/Hispanic difference. Dominick argues that Jews and Hispanics are both minorities, so Stewart’s Jewish experience gives him insight and empathy with Sanchez’s Cuban experience.

That ticks Sanchez off — for good reasons, I think. Flustered, he starts trying to explain the difference between Stewart’s career experience and his own, and screws it up.

Here’s the point he should have made: Jon Stewart never had to be a trail-blazer for other Jews; Mort Sahl and Lenny Bruce established the Jewish-comedian-doing-edgy-social-commentary thing half a century ago. And he didn’t have to break ceilings; wherever he went, Jews had already been higher up in the organization.

Sanchez had to do both. So no, for both class and ethnic reasons, Stewart’s life experience gives him no insight into Sanchez’s life.

Anyway, Sanchez wasn’t able to think that through on the spot and say it properly, so instead he blurts something stupid that gets him fired. That’s probably also how he said the stupid things that got him skewered on the Daily Show to begin with.

Here’s my take-away point: Class prejudice is so ingrained in the professional class that a lot of people (like Dominick) can’t see it even when someone points to it. Forget whether or not it’s true that Stewart’s criticism of Sanchez was classist — Dominick couldn’t even understand the question.


A lot of criticism of the Tea Party has a classist element, which I am constantly filtering out before quoting it on the Sift.

I’m against Tea Party candidates because they say things that are factually incorrect, they promote theories that bear no resemblance to the way the world works, and they don’t live up to the values they want to impose on the rest of us. But if Sarah Palin wants to say “refudiate” or write notes on her hand or give her children funny names, let her. Those are class markers, not evidence that she would be a bad president.

I’m reminded of what Jack Burden says in my favorite political novel All the King’s Men: “Graft is what he calls it when the fellows do it who don’t know which fork to use.”



Short Notes

The best ad I saw this week: Bill Gates Sr. invites Washington voters to soak the rich.


Rebellious Pixels shows us who Glenn Beck’s target audience is: Donald Duck.


I was going to write about Malcolm Gladwell’s dismissal of social networking as a tool for political activism, but Sam Graham-Felsen said everything I wanted say with more authority. Short version: If you’re using technology instead of interacting with people, that’s bad. If you’re using technology to interact with people better, that’s good.

Or, from the user perspective: If you click a Like button and say, “Done now”, you’re not going to change the world much. But if clicking a Like button is the first tiny commitment that gets you moving towards larger commitments later, then maybe you will.

With all these new technologies, I think it’s useful to imagine what non-telephone users must have asked the first telephone users: “Why are you talking to that machine instead of talking to a real person?”


Stephen Colbert skewers Justice Scalia’s interpretation of the Constitution. Scalia claims to be an “originalist”, which means that he wants the Constitution and its amendments interpreted the way they were at the time of ratification (unless you’re talking about corporate rights; those the Court can invent to its heart’s content).

Stephen spells it out:

Scalia must argue that the First Amendment only truly guarantees freedom of speech as it was spoken in 1791. If you don’t like his opinion, it’s his right to say, “Go bugger a Hottentot, you leprous octaroon.” If you’re offended by Scalia’s argument, perhaps you should defend your rights with force of arms. But remember, by this argument the Second Amendment gives you the right only to bear blunderbusses and flintlock pistols.


For those few people who are paying attention to evidence this year, the stimulus was money well spent.


Nate Silver’s current projections: Democrats will hold the Senate 52-48, but lose the House 224-211. As of this morning, TPM’s poll average for the generic congressional ballot has the Republicans up 2%. That margin has been dropping since late August.

In general, polls are weird this year: Different organizations poll the same races at more or less the same time and get wildly different results. You can get depressed every time you see a discouraging poll, or you can look around until you find a result you like better.

My advice: If you were planning to campaign or contribute or otherwise try to affect this election, don’t let a poll change your mind.


I want to see more of these White House White Board talks. In this one, Council of Economic Advisors Chair Austan Goolsbee explains the difference between the Republican and Democratic plans to extend the Bush tax cuts. It’s simple and it’s clear.


James O’Keefe — the guy whose carefully staged and edited videos brought down ACORN, and who is currently serving three years of probation for attempting to bug Senator Landrieau’s office — has finally jumped the shark.

In August, CNN correspondent Abbie Boudreau wanted to interview O’Keefe for the CNN documentary “Right on the Edge” about young conservative activists. O’Keefe attempted to lure her onto a boat filled with hidden cameras and sex toys, trying to provoke reactions that could be edited into an embarrassing video. (CNN’s version is here.)

Even O’Keefe’s former employer Andrew Breitbart (promoter of the similarly mis-edited Shirley Sherrod video) describes his plan as “patently gross and offensive“.


Jay Bakker, son of disgraced evangelists Jim and Tammy Faye Bakker, preaches about gay marriage — and all the “amens” suddenly stop.

While researching Bakker, I mistyped and wound up reading the blog of Jay Baker, who reposted this marvelous piece about “the gay agenda”.


Colorado Senate candidate Ken Buck’s plan to avoid the media is working so well that he’ s now stopped speaking in public at all.

The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com. Or follow the Sift on Facebook.

Hard Work

http://www.facebook.com/plugins/like.php?href=http%3A%2F%2Fweeklysift.blogspot.com%2F2010%2F09%2Fhard-work.html&layout=standard&show_faces=false&width=450&action=like&colorscheme=light&height=35

When a man tells you that he got rich through hard work, ask him: “Whose?”

Don Marquis

In this week’s Sift:

  • Jobs. It’s easier to understand which policies won’t create jobs than which ones will.
  • Corporatism and Net Neutrality. The debate sounds technical, but it’s really about creating choke-points and collecting tolls.
  • Short Notes. Can liberals draw a crowd in D.C.? Why does the media provide a free platform for corporate shills? Strippers protest an Ohio church. Two-year-olds on anti-psychotics. God is funding Joe Miller’s Senate campaign. David Brooks says something uncommonly insightful about Glenn Beck’s followers. Bad Christmas presents. And more.


Jobs

What better topic for Labor Day than jobs? Everyone seems to agree that there aren’t enough jobs. But they disagree about whether and how the government can do anything about it.

Where are we? I love a good graphic, and this one explains where we are in the current recession compared to all the previous ones since World War II.

JobLossesAlignedAug2010.jpg

We’re in an unusually long and deep drop. (The graphs show the percentage of jobs lost, which eliminates the effect of increased population.) In length it’s looking about the same as the previous recession (2001), when it took about four years to get all the jobs back. In depth, it’s the worst since the Depression.

We seem to be 6-8 months past the bottom, though the upward slope isn’t very steep yet. Temporary hiring for the census created an illusion (that things were getting better faster a few months ago and that they’re getting worse now) which is smoothed out in the dotted line.

Why? Popped bubbles lead to recessions that are fundamentally different from ordinary recessions, and recovery takes longer. Bubble-popping recessions include this one, the 2001 recession (the internet bubble), the Japanese “lost decade” of the 1990s (stock and real estate), and the Great Depression.

An ordinary recession is a normal part of the business cycle, caused by a temporary excess of production and inventory in an economy that is basically healthy. Businesses get over-optimistic during an expansion, so they build too many factories, open too many stores, and hire too many people. Eventually, some minor or accidental glitch causes consumers to slow down their spending. Then retailers cancel orders, factories lay off workers, and everything snowballs for a while, as each cutback causes more people to realize they’re over-extended. Eventually, though, the overstocked inventory gets sold, factories get orders again, and everything straightens out.

That’s what happens in the real economy. In the money economy, the ordinary recession produces a liquidity crisis — people have assets of long-term value, but they need (or think they need) cash. So they try to sell things, driving prices down, and causing other people to want to sell things in a panic. Eventually wiser heads realize assets are cheap and start buying. Then the markets snap back like a rubber band.

An asset bubble, on the other hand, is based on fantasy and fraud rather than excess optimism. (The Dutch Tulip Mania of 1637 is the classic example.) In an asset bubble, large numbers of people imagine that they’re rich — and borrow and spend accordingly — because speculators have bid asset prices up higher than any rationally foreseeable economic growth can justify. When the bubble pops, formerly “rich” people can’t pay their bills, then the people they owe can’t pay their bills, and so on.

In the financial economy, the asset bubble produces a solvency crisis. In a liquidity crisis, your creditors will get their money if they just wait until you can bring your long-term assets to bear. In a solvency crisis, you are actually broke; your debts exceed any rational valuation of your assets. The question in a liquidity crisis is “Who’s willing to wait to get their money?” In a solvency crisis it’s “Who’s going to take the loss?”

The government can solve a liquidity crisis just by extending credit. (That’s why the Federal Reserve was invented.) But extending credit during a solvency crisis just delays the day of reckoning. The books don’t balance, and somebody has to take the loss.

Kinds of unemployment. One of the big debates now is about whether our unemployment is cyclical or structural. That sounds technical, but it’s actually a pretty simple idea: Cyclical unemployment is the carpenter who will get back to work when the economy picks up and people start building houses again. Structural unemployment is the mechanic who sees gobs of want ads for nurses — there are jobs, but not for him.

Cyclical unemployment is fairly easy to solve: The government runs a big deficit, lowers interest rates, and just generally pumps money into the economy. Imagine what would happen if somebody started shoveling five-dollar bills out of a helicopter: Pretty quickly the ice cream shop would have to hire back the scoopers it laid off.

Structural unemployment is trickier, because workers need to retrain. Government can help a little, but only after people get desperate enough to start over.

Paul Krugman has been arguing that our current unemployment is mainly cyclical, and that the problem with the stimulus is that it wasn’t big enough. (He argued at the time it was proposed that it wasn’t big enough.) Slate’s James Ledbetter summarizes arguments that unemployment is increasingly structural. (The Economist is big on this idea and has been for months.)

The cyclical/structural distinction is related to the optimism/fantasy distinction: Bubbles distort the economy, and the jobs that go away when they pop don’t necessarily come back. We had an irrational number of real estate agents, mortgage brokers, and home rehabbers in 2007, and a lot of them will have to find something else to do.

Still, it’s obvious that unemployment isn’t entirely structural, because there aren’t any booming sectors screaming for qualified workers. My friends’ kids are entering college now, and I don’t know what they should study to be sure of getting a job.

What won’t work: extending Bush’s tax cuts. Few job-creating ideas are as delusional as extending the Bush tax cuts. Obama wants to let them expire for those making $250,000 or more (as he promised in the campaign). Republicans argue that restoring these Clinton-era rates will primarily raise taxes on small businesspeople, who are the primary creators of jobs. Keep their taxes low and they’ll create the jobs the economy needs.

Not exactly. According to the WaPo’s “5 Myths” column:

If the objective is to help small businesses, continuing the Bush tax cuts on high-income taxpayers isn’t the way to go — it would miss more than 98 percent of small-business owners and would primarily help people who don’t make most of their money off those businesses.

Plus, the small-business-creates-jobs myth is only sort of true. A small business that is breaking out — starting to franchise nationwide, say — hires a lot of people. On the other hand, your basic family-owned restaurant or proprietor-operated shop might give the part-time help more hours if business picks up, but they rarely launch major expansions. And when they do expand, the trigger is increased consumer demand, not lower taxes.

A local friend verified this by talking to a number of proprietors on our Main Street. (Here in Nashua, Main Street is not a metaphor.) How many new people would they hire if they got a tax cut? Invariably, the answer was none.

What won’t work: lower interest rates. Robert Reich takes apart the idea that lower interest rates will create jobs. In an ordinary recovery they will, but not in an asset-bubble recovery.

Usually, low interest rates create jobs in both a supply-side and a demand-side way. On the supply side, a business that wants to expand is more likely to do so if it can get a cheap loan. But, once again, if there’s a shortage of demand, businesses aren’t going to want to expand. Why build on to your restaurant if you can’t fill the tables you have?

On the demand side, lower interest rates encourage people to borrow money to buy stuff. But:

Individuals aren’t borrowing because they’re still under a huge debt load. And as their homes drop in value and their jobs and wages continue to disappear, they’re not in a position to borrow.

Reich sees two main results of lowering interest rates: First, a new wave of corporate acquisitions, which will have the effect of eliminating redundant jobs in the merged companies. And second, investment in new equipment that will replace workers rather than increase production. Net result: fewer jobs, not more.

What about Germany? Germany is often cited as an example of an economy that is recovering without a major government stimulus. Interesting story there: So far, Germany’s recovery is better than ours in terms of employment, but worse in terms of GDP.

Two things are different about Germany: First, they didn’t have a housing bubble, though their banks did get in trouble from investing in our worthless mortgage-backed securities.

Second, in the US, we let companies fire people and then paid them unemployment. Germany subsidized employment directly. NPR’s Marketplace explains:

Workers are building fewer trucks because demand has dropped in half this year. But MAN says it hasn’t had to lay off any of its permanent staff. That’s because it’s signed up for a government program called kurzarbeit, or short work. Workers take a cut in their hours and their pay. But the German government reimburses them for a chunk of their lost wages.

MAN spokesman Dominique Nadelhofer says employees may work as little as half time. But they still make 90 percent of their salary.

It’s hard to say what lesson we should draw from that, other than maybe what we should do next time.

Conclusion: More stimulus would help some, but it’s not clear how much, and besides, the political mood is very hostile. Democrats will do well to resist deflationary spending cuts. If the graph is right, employment should be back to 2007 levels in another year and a half.


In August, private employment went up by 67,000 jobs, but government employment dropped by 121,000 as temporary census jobs ended and the effects of the stimulus diminished. And this isn’t encouraging: “while corporate profits were generally robust in the second quarter, many companies improved their revenues by cost-cutting.”


Evidence of conservative framing success: The stimulus is often described (even in places like the NYT) as $800 billion of “federal spending”. Actually it was about $500 billion of spending and $300 billion of tax cuts.


Slate explains where Labor Day comes from: After suppressing the Pullman strike, President Cleveland wanted to curry favor with workers. But the obvious May 1 holiday would have commemorated the Haymarket Riot.



Corporatism and Net Neutrality

DailyKos’ Thutmose V posted a nice net-neutrality-for-dummies piece Monday.

Net neutrality is a good example of how corporatism works. Internet-providing corporations like Verizon and Comcast know why they care about the issue, and so they’re relentless in lobbying for their interests. Most of the public doesn’t know why they should care, and the eyes of the non-geek majority quickly glaze over when someone tries to explain.

As Thutmose makes clear, there is a legit reason why some internet traffic (like live video) would benefit if there were a high-priority lane on the internet, while other traffic (like email) wouldn’t suffer if it were shunted to a low-priority lane and arrived a second or two later.

Regulations could be written to do this without fundamentally altering the nature of the internet. The Post Office, for example, has multiple classes of mail, but they don’t deliver pro-Post-Office magazines faster than anti-Post-Office magazines.

But if the regulations are too loose, the internet corporations will gain vast new powers to prioritize however they like:

Imagine if Ford bought the Interstate Highway system, and announced that any car that was not a Ford would have to pay a high toll to use the highways. The Comcast NBC merger invites a similar situation with the Internet.  Does anyone think that Comcast might be tempted to give NBC priority on their network, and maybe charge anyone else providing [competing] content a high price to get on the net?

Comcast has disturbing history here.

Google was supposed to be a corporation whose interests coincided with consumers, but the Electronic Frontier Foundation isn’t happy with the proposal Google worked out with Verizon. Google’s interests are protected, but (according to MSNBC):

Skype would not have a chance to compete with any video telephony service Verizon might develop in the near future. And Netflix would be at a disadvantage trying to move high-quality video over Verizon’s fiber-optic pipes if Verizon decides to offer its own service.

Even if the corporations decide to play fair with each other, a fast-lane-slow-lane structure motivates them to keep the slow lane slow. The point here is to create many new choke-points where toll booths can be set up. That — and not innovation and competition — is how big corporations make big money.

For a trivial example of how corporate toll booths work, consider unlisted phone numbers. The LA Times’ David Lazarus reports that the monthly cost of an unlisted number varies from $1.25 (ATT) to $1.99 (Time Warner Cable) per month — in exchange for changing a bit in their database and then not publishing your number:

Time Warner and other telecom companies are charging for a service that consists of them basically not doing anything. And because they continue not to do anything month after month, they keep charging you on the grounds that it’s a recurring service.

He points out that Time Warner Cable doesn’t even publish a phone book — it just distributes information to whoever has the local phone book contract. So the “service” is purely a toll TWC can charge because it happens to be the gate-keeper.

Kevin Drum elaborates:

phone companies are regulated monopolies. If I want phone service, I have no choice but to contract with a tiny number of suppliers who then have privileged information about me. Should I also pay them protection money for withholding my Social Security number or my date of birth from their phone books?

The job every corporation really wants is Gate Keeper. You do nothing, employ nobody, and collect tolls. Wait, I’m wrong, you do employ some people: lobbyists who help you create new choke-points where new gates can be installed.



Short Notes

I can’t make it to D.C. on October 2. Can you?


We used to mourn when the independent bookstores were driven out of business by Barnes and Noble. Now we mourn when the Barnes and Noble closes.


The NYT had a “Room for Debate” feature on the great egg recall and what’s wrong with the egg industry. Rather than discuss the issue, though, I want to step back and look at the contributors: a food safety activist, some university professors in relevant fields, and then a guy from the Cato Institute, a libertarian think-tank funded by the Koch brothers.

The Cato guy, predictably, says that “The Panic Will Subside” and so there’s no need for new regulations. That’s because Cato’s mandate is not public health, but fighting government regulation of business. Every Cato article concludes that regulations are unnecessary, and the only mystery is how it will arrive at that conclusion. (This guy says that regulations will necessarily favor big egg producers over small ones. But of course Cato cares no more about small egg producers than it cares about public health. Whoever makes no-government-regulations a sympathetic position is Cato’s new best friend.)

Here’s my question: Why do we routinely let these guys into the room, even though they have no interest in solving the problem, whatever it is? Every well-rounded debate panel has to include a shill for our corporate overlords, who will argue in bad faith until he arrives at his pre-ordained conclusion. And we accept this without a second thought.


Second City Network gives its explanation for Jan Brewer’s mental glitch during her opening statement at the Arizona gubernatorial debate.


An Ohio church protests the local strip club on Saturday nights. Lately the dancers have been returning the favor on Sunday mornings.


The Onion captures the spirit of bigotry perfectly in Man Already Knows Everything He Needs To Know About Muslims.


Disturbing article in Thursday’s NYT about the growing number of very young children being prescribed anti-psychotic drugs. Given that my wife is a two-time cancer survivor and my parents swear by their anti-depressants, I’m usually unimpressed by articles about the evils of modern medicine. But this caught my attention:

A Columbia University study recently found a doubling of the rate of prescribing antipsychotic drugs for privately insured 2- to 5-year-olds from 2000 to 2007. Only 40 percent of them had received a proper mental health assessment, violating practice standards from the American Academy of Child and Adolescent Psychiatry.


NYT columnists Gail Collins and David Brooks are mostly just fooling around during this conversation, but then Brooks lets loose the following bit of insight into the 8-28 Beck rally and the Tea Party mindset in general:

Every society has to engird capitalism in a restraining value system, or else it turns nihilistic and out of control. The Germans have a Christian Democratic set of institutions, enforced by law. The Swedes have their egalitarianism. Since the days of Jonathan Edwards, we have developed a quasi-religious spirituality that informally restrains the excesses of the market. God and Mammon are intertwined.

Many people feel that the values side of this arrangement is dissolving. Both the government and Wall Street are leaping into the void, to bad effect. … People like those at last weekend’s rally want the Judeo-Christian ethic back, which sweetened and softened life on the frontier (physical or technological). And so they march. They are only vaguely aware of this value system. It is so entwined into their very nature, they can not step back and define it. But they feel it weakening.

It might be possible for a responsible person to tap into this sense, but none has, so Glenn Beck has.

That’s why I find Brooks to be the most frustrating columnist in America today. He’ll write nothing but nonsense for months, and then off-handedly say something like that.


Check out Vanity Fair’s look at Sarah Palin.


As best I can tell, this is not a joke: Alaskan Senate candidate Joe Miller wants you to help God fund his campaign.


It’s never too early to start thinking about what not to get your little girl for Christmas.



The Weekly Sift appears every Monday afternoon. If you would like to receive it by email, write to WeeklySift at gmail.com.