Tea By Any Other Name

new poll says that the Tea Party’s public image has dimmed now that the people they elected have actually been in office and done something.

This is a good time to back up, look at the big picture, and see what you can do if you have corporate money and the conservative media empire — Fox, Limbaugh, the Washington Times, et al — behind you.

At the end of the Bush administration, the Republican brand was dead, and deservedly so. Bush and a Republican Congress had implemented the full conservative agenda: tax cuts for the rich, de-regulation for corporations, and two new wars to keep the Neocons happy. It was an across-the-board disaster. The wars dragged on with no clear goal, the tax cuts never had any effect beyond making the rich richer and the deficit bigger, and a de-regulated Wall Street managed to make trillions of dollars disappear by financial sleight-of-hand.

But rebranding means never having to say you’re sorry, so instead of apologizing for the carnage, conservatives said, “We’re not those old Republicans, we’re the new Tea Party.”

Instead of that Washington-centered lobbyist-driven Republican Party, the Tea Party was a fresh and energetic movement of real downhome Americans who wanted to cut rich people’s taxes, de-regulate corporations, and keep fighting wars. (Oh, and by the way, from Day 1 they were organized the same Republican lobbyists and funded by the same Republican billionaires.)

So if the Tea Party is getting a bad image now too, why not do it again? Any day now you should expect to see a hot new Constitution Party or Freedom Party or something. It will have vast anonymous funding and Fox will anoint it the new “voice of real America”. If it gets power, what will it do? Cut rich people’s taxes, fight wars, and de-regulate corporations. But it will be “new”, and none of the old failures will stick to it.

A Week of Down

It’s been an eventful week economically. The debt ceiling deal got passed and signed, but the stock market tanked and S&P downgraded U.S. government bonds anyway.

For the most part the media has covered this constellation of issues the way they cover anything: What-happened and what-it-means-for-citizens has gotten short shrift, in favor of assessing blame (always awarding it equally to both sides) and trying to predict how this tactical skirmish will affect future elections.

But we’re talking about trillions of dollars here, so it must have some effect on real people. Let’s start there.

What got cut first. “Only” $917 billion of spending cuts have been passed so far, including only $21-25 billion in the 2012 budget. (I’m seeing different numbers in different places; not sure why.) So worries about immediate contraction in the economy (at least from this deal) are overblown. The rest of the $900 billion is cut over the next decade.

Apparently, $350 billion comes from “security” — defense, homeland security, etc — and $567 billion (although this article in The Hill claims $756 billion) from domestic discretionary spending (i.e., not entitlements like Social Security and Medicare). That’s as specific as things have gotten so far. The Hill:

The law does not itemize the cuts, instead leaving those decisions to appropriators. But the size of reductions makes it inevitable they will impact a long list of discretionary programs, including those related to environmental protection, food safety, education and infrastructure.

<sarcasm> Food safety. Just the other day I was noticing that I hadn’t gotten food poisoning lately and thought, “That’s probably something we could cut back on.” <end sarcasm> The long-term unemployed are probably going to suffer too.

The next round of cuts. Boehner, Pelosi, Reid, and McConnell each get to name three people to a “Super Committee” to recommend another $1.5 trillion in deficit reduction by November. Their recommendations will get an up-or-down vote in both houses of Congress, with no amendments.

The problem with agreements like this is that no Congress can force a future Congress to do anything. So the agreement contains automatic cuts that will happen if the $1.5 trillion deficit reduction doesn’t pass. The automatic cuts are supposed to be ugly to both sides, so that they’ll be motivated to negotiate a deal to avoid them.

Republicans are so set against any tax increases on the wealthy that they wouldn’t agree to them even in this automatic deficit-reduction package that isn’t supposed to happen. Their motivation is supposed to come from defense spending cuts.

The painful-automatic-reduction feature of the agreement sets up another hostage crisis in November, with the idea that both sides will have hostages, so no one will get shot. Somehow I don’t find this comforting. Jonathan Chait has compared such agreements to ransoming your child from kidnappers for “$100,000 and your other child”.

The precedent we’ve set. Keep in mind that the debt ceiling has never been used this way before. Most other countries don’t even have a debt ceiling, because it’s redundant: If Congress passes a budget with a deficit, it shouldn’t have to separately authorize borrowing to cover it. (That’s like going to a restaurant with nothing but your Visa card, eating, and then debating whether you’re going to take on this additional debt by signing the receipt.)

In the past, debt-ceiling increases have been opportunities for the out-of-power party to posture about the irresponsibility of the in-power party. But never has there been a negotiation in which the president made concessions to get the ceiling raised. That’s because the debt ceiling is a doomsday device. Nobody seriously believed that the country would be better off if our government couldn’t meet its commitments.  So there was nothing to negotiate about.

But now hostage-taking has become a respectable tactic. Don’t take my word for it, listen to Senate Minority Leader Mitch McConnell.

I think some of our members may have thought the default issue was a hostage you might take a chance at shooting. Most of us didn’t think that. What we did learn is this — it’s a hostage that’s worth ransoming.

McConnell says this “set a template for the future. … we’ll be doing it all over.”

I keep flashing back to the novel The First Man in Rome. As the story begins, the Roman Republic has few rules but a lot of traditions. In a gradual back-and-forth escalation of advantage-seeking, Marius (the main character) and his enemies violate the traditions — sometimes with justification, sometimes not. By the end, Marius is mounting his enemies’ heads on spikes in the Forum.

So yeah, there is nothing illegal about holding the American economy hostage until you get what you want. It’s just a violation of tradition, something we’ve never done before. But if you go far enough down that road, you wind up with heads on spikes.

The downgrade. Raising the debt ceiling and cutting future deficits was supposed to keep our credit rating up. It didn’t. On Friday S&P downgraded the U.S. government’s bonds from AAA to AA+, which is still pretty good. (Japan is at AA-, and they manage to sell 30-year bonds at less than a 2% interest rate.) The other major ratings service, Moody’s, is maintaining the AAA rating, at least for now.

As with the debt-ceiling crisis, lots of blame is going back and forth. Democrats and Republicans are blaming each other, the administration is criticizing S&P, and so on.

Here’s the thing to understand: What bothers S&P isn’t the sheer size of the federal debt. (Again, Japan is much worse fiscal shape, and they’re far from bankrupt.) It’s the dysfunctionality of our political system. If you look at the trends and do the math, our current level of taxation doesn’t cover the expenses of a world empire with an aging population and an inefficient health care system. None of that is unsolvable, but S&P says:

The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.

No one has a plan to disengage our military commitments, the Republicans have drawn a line in the sand against any increase in revenues, and our society is probably not willing to let large numbers of old people die in the streets. So how does that situation resolve? Inflation? Or maybe one of the future fiscal hostage crises goes bad and we actually default.

Given what we’ve just seen, it’s hard to make the case that loaning money to the U.S. government is risk-free.

The Solar Oil Field, and other short notes

Wrap your brain around this: Oman is building a big solar facility to help it pump more oil. Solar energy makes steam that gets injected into the ground to bring up more oil.

You can tell Grist wants to hate the project, but just can’t.

If they work out in Oman, which desperately wants to keep its natural gas for other purposes, it could be huge: imagine entire oil fields covered with these things, silently mocking solar advocates everywhere.

Yeah, it’s helping produce oil which will get burned and cause more global warming. But the likely alternative is to produce the same oil with steam made by burning natural gas.


The Onion: Obama Turns 50 Despite Republican Opposition.

I thought that was a joke. But no: Michele Bachmann attacked Obama for celebrating his birthday on a day when stocks were crashing. And Fox News made sure their viewers knew the President was having a “hip-hop barbecue” with a bunch of other black guys instead of doing something to create jobs.


Do you miss the days when Jerry Falwell went after Tinky Winky? Well, tune into Fox News, where Sponge Bob is environmentalist propaganda.


Ever wonder how that E-Trade baby is doing now that the market is going down?


Matt Damon turns back a right-wing talking point about teachers getting lazy because of tenure.

A teacher wants to teach. I mean, why else would you take a shitty salary and really long hours and do that job, unless you really love to do it?


DIY nuclear reactor — bad idea. Damn those government regulations.


Last week (in the middle of Centrist in Exile) I ranted about Republicans’ attempt to blame the bad economy on the EPA. Grist follows up:

After 30 years, it is time to start ignoring all of the hyperventilating about the imaginary economic horrors of environmental protection. In reality, there is overwhelming evidence that a healthy environment is part of a strong economy; indeed, allowing pollution to continue unabated is the economically foolish thing to do.

Environmental regulation doesn’t cost money; it saves money. Dealing with pollution at the source is so much easier, more efficient, and healthier than cleaning up downstream.


The Onion News Network covers agitated climate scientists as if they were zoo animals: “Don’t some people believe that scientists can actually sense danger coming?”


Some classic Fox news-twisting: When President Obama issued a statement sending “best wishes to Muslim communities in the United States and around the world” on Ramadan, Fox & Friends was all over him: He was favoring Ramadan over Easter, which hadn’t rated a presidential statement.

Of course, Easter got mentioned in the President’s weekly radio address, there was the annual Easter-egg roll on the White House lawn, and Obama hosted an Easter Prayer Breakfast in which he talked about “the resurrection of our savior, Jesus Christ“. But all Fox-watchers know is that there was no official written statement, like Ramadan got.

Not Going Home

Home is a name, a word, it is a strong one; stronger than magician ever spoke, or spirit ever answered to, in the strongest conjuration.

— Charles Dickens, Martin Chuzzlewit (1844)

In this week’s Sift:

  • Confessions of a Centrist in Exile. My natural home is in the Center, not the Left. But I can’t go back there now, and I don’t know if I ever will.
  • The Mosler Proposals. If you believed (as Warren Mosler does) that in the current economy government spending cannot create any kind of problem — short term or long — what would you do?
  • Short Notes. Obama surrenders to the Tea Party. Even the Tooth Fairy is cutting benefits. Solar-powered bikinis. Apple is the new boss, same as the old boss. How much of a nuisance is it to get a voter ID? Southampton University prints an airplane. Why not let environmentalists bid on oil rights? Good ratings didn’t save Cenk Uygur. If the victim is Planned Parenthood, it’s not terrorism. Perry is the new Republican favorite. And Jon Stewart takes on conservative delusions of victimization.
  • Last week’s most popular post. The Dog Whistle Defined got 360 views.
  • This week’s challenge. This week’s challenge is to keep your spirits up. The news has been relentlessly negative for some while, and that’s probably going to continue this week. Breathe. Look at the sky. Find somebody young enough to get excited when you propose playing a silly game. Things change, and it won’t be long until you feel like changing them yourself.

Confessions of a Centrist in Exile

The Center is my home. But I can’t live there any more.

Re-assembling the elephant. Whenever I describe what I’m trying to do with my writing, two ideas rise to the top: First, whatever the subject, I’m trying to find the simplest explanation that is both accurate and sensible. And second, I’m trying to “re-assemble the elephant”.

That piece of my internal slang comes from The Blind Men and the Elephant: Each blind man touches a part of the elephant, and they come up with wildly incompatible descriptions. The elephant is like a wall, a spear, a snake, a tree, a fan, and a rope. Re-assembling the elephant means taking different people’s experiences seriously, and finding an underlying truth that makes sense of all their accounts.

As a dedicated elephant-assembler, I naturally view myself in the middle, between opposing worldviews. My best work builds bridges: Red Family, Blue Family (which led to magazine articles here and here), explains to liberals how the life experience of people on the religious right leads them to their very different notions of family values. Meeting at Infinity bridges the theist/atheist divide. Supporting My Troop is about the decades-long relationship between a peacenik (me) and a career Marine (my best friend from high school). Spirituality and the Humanist interprets religious language for people of a rational/scientific bent. Change in My Lifetime explains to people younger than me why racism means something different to so many whites older than me.

Defending the Center. In Terrorist Strategy 101, I went a step further. That essay didn’t just explain Bin Laden to Americans, it downgraded the Us-against-the-Terrorists framing in favor of Extremists-against-the-Center, and concluded with an exhortation to defend the Center against both Neocons and Islamists.

Most of all, we Americans need to keep a leash on our own radicals. They are not working in our interests any more than Bin Laden is working in the interests of ordinary Muslims. The extremists on both sides serve each other, not the people they claim to represent. The cycle of attack-and-reprisal strengthens radicals on both sides at the expense of those in the middle who just want to live their lives.

In the face of the next attack, be slow to embrace radical, violent, or angry solutions. The center must hold.

People who started reading the Weekly Sift recently are probably surprised that I ever thought of myself as a defender of the Center. Because although I didn’t even call myself a Democrat until the Clinton impeachment, I’ve radicalized over the last 2-3 years. Now, if I’m explaining why somebody isn’t as crazy as you think, I’m more likely to be talking about Karl Marx than Ayn Rand — or even John Boehner. Most of the bridges I’m building these days go further to the Left, not back towards the Center.

Because I’m not going back. For a long time I didn’t admit that to myself, but now I do. On special occasions I may raise a glass to the Center like a Boston Irishman remembering the Auld Sod, but I’m not going back for a long, long time. Maybe ever.

I’m a native-born Centrist in exile on the Left.

What happened? Two years ago, when I reviewed David Michaels’ Doubt is Their Product, I described it as “a radicalizing book”. Based on many examples over a period of decades, it describes the standard operating procedure of corporations — tobacco companies, asbestos companies, and even microwave popcorn companies — who realize they are killing people.

The procedure does not start with “stop killing people”. That is a last resort, an option to be taken if all else fails. More favored tactics are denial, hiding facts, manipulating research, manipulating public opinion, foot-dragging, lobbying regulators to set unreasonably low standards, and ultimately hiding behind those standards in court to avoid paying damages to victims’ heirs.

This isn’t what bad corporations do. It is standard procedure. There’s a whole industry of specialists to guide CEOs through the profit-from-killing-people process.

[The more recent Merchants of Doubt by Naomi Oreskes and Erik Conway tells a similar story about corporate propaganda campaigns on political issues: the ozone hole, global warming, and so on.]

Since then, I have had another lens through which to view current events. Not Left vs. Right, or even Center vs. Extremists, but Corporations vs. Humans.

And that brings me back to my first self-identification. Of all my lenses, which provides the simplest view that is both accurate and sensible?

Corporations vs. Humans. More and more I believe that’s the central struggle of our time.

Bridges to nowhere. Between the corporate view and the human view, there is no bridge to be built, no elephant to re-assemble. The corporate worldview involves no subtle mystery: They see us as sheep and want to consume us. And there’s no point explaining any human worldview to corporations, because they don’t care. They can’t care. It’s not in their DNA. (I wrote this up last December in Corporations Are Sociopaths.)

The point of bridge-building is that people can change their minds. Humans can be a defensive, xenophobic species, but we also are driven to understand each other. Once you understand someone else’s experiences, it’s hard not to sympathize. And once you sympathize, it’s natural to look for ways we can live together and all get some of what we want.

Humans can be hard-hearted, self-interested, and downright evil. But history tells remarkable stories of people who change their minds. Slave-owners and slave-traders may become abolitionists. Male chauvinists may fight for their daughters’ rights. Warriors become peacemakers. Tyrants become liberators. It’s rare, but it happens. No human is so far gone that you can be 100% sure they’ll never change.

But corporations respond only to carrots and sticks, not to new sympathies, new evidence, or new moral understanding. When the tobacco companies figured out that smoking killed people, they defended their profits by arguing that it didn’t. Ditto today for fossil-fuel companies and global warming. Gathering evidence to convince them is a waste of time.

Arguing with humans. Someone is bound to point out to me that all actual arguments are between humans. The TV talking heads, newspaper columnists, politicians, think-tank intellectuals — they’re all people, not corporations. Their minds could change.

But more and more, those people are just tongues. If they say the wrong words, new tongues will say the right words. A corporate-funded politician repeats a sound-bite written by a corporate-sponsored pundit based on the research of an academic at a corporate-endowed think tank. None of those people have any real influence on the message. If you changed their minds, you might convince them to quit their jobs. But you would not change the message, because the message does not come from people.

And so we hear nonsense like this: Defending a House appropriations bill that guts environmental protection (banning the Bureau of Land Management from adding to protected wilderness areas, the Fish and Wildlife Service from naming new endangered plant and animal species, etc. — all regardless of any new events or research) Idaho Republican Mike Simpson said on Tuesday: “Many of us think that the overregulation from E.P.A. is at the heart of our stalled economy.”

Not the mortgage companies who loaned money to people with no assets or income, not the investment banks who packaged those loans into deceptively marketed collateralized debt obligations, not Moody’s and S&P who AAA-rated the toxic CDOs, not the unregulated credit-default swap market that built towers of speculative side-bets on each toxic CDO, and not George W. Bush or Alan Greenspan who failed to regulate any of it. The E-frigging-PA.

This idea enters the public debate not because it makes sense to Rep. Simpson or anybody else — that’s irrelevant — but because the EPA hurts the profits of polluting corporations who spend money on lobbying, electioneering, and other propaganda. No matter what evidence you assemble in its favor, the EPA will still hurt those profits, so it will still be blamed for whatever problem people are currently worried about.

The Center is occupied territory. Tuesday, Paul Krugman blogged on The Cult that is Destroying America, and followed it up in Thursday’s column The Centrist Cop-Out.

What’s destroying America, he says, is not crazy right-wingers. (We’ve always had them.) What’s comparatively recent and more dangerous is the media’s “cult of balance”. No matter what positions the two parties take, they will be covered as if they were equally extreme and irresponsible.

What all this means is that there is no penalty for extremism; no way for most voters, who get their information on the fly rather than doing careful study of the issues, to understand what’s really going on.

Standing in the middle, seeing reason (or blame) on both sides — that makes sense when you’re arguing with public-spirited fellow citizens who happen to disagree with you. It doesn’t make sense when the driving force behind an argument is a corporation.

Logic will not convince the Ford dealer than you don’t need a new truck; at some point you just have to leave. Similarly, we can’t persuade corporations not to consume us. We have to take their power away. That won’t be a conversation, it will be a fight.

The Left is not totally free of corporate corruption, but it is the only remaining place to fight from. The Right is completely co-opted. Its frames, sound bites, ideologies, and pseudo-facts are corporately generated and would collapse without the media/academic infrastructure that corporate money buys. And to be in the Center is to collaborate, to pretend that the corporate how-to-serve-man cookbook is a viable plan for the future.

The Center is my homeland, the Jerusalem I will always hope to return to. But for the foreseeable future it is occupied territory, and I refuse to collaborate. So I will stay here, in exile on the Left.

The Mosler Proposals

Two weeks ago I introduced you to Warren Mosler’s Seven Deadly Innocent Frauds of Economic Policy, a short and insightful book you can read for free.

Review. Mosler’s main point is simple: Money doesn’t work the way you think it does. A dollar is just a data entry at the Federal Reserve, and doesn’t represent any physical substance. So if the Fed’s computer says you have a billion dollars, then you do. Those dollars didn’t have to “come from” anywhere or correspond to anything; they’re just data. (If Delta gave you a million frequent flier miles, would those miles have to come from somewhere?)

Consequently, the U.S. government’s spending is not limited by it’s ability to tax or borrow. Dollars can simply be created out of nothing by making an entry in the Fed’s database. Here’s how it works: The Treasury “borrows” by issuing a bond which the Fed “buys” by entering a credit in the Treasury’s account. Checks to Social Security recipients, defense contractors, or whoever eventually wind up at the Fed, which “cashes” them against the balance in the Treasury’s account.

According to the Fed balance sheet at Wikipedia, the Fed currently owns $1.6 trillion of the total $14.5 trillion of Treasury securities. That’s $1.6 trillion that came from nowhere.

A debt-ceiling aside. Those debt-ceiling clocks have been ticking down to the moment when the Treasury’s account at the Fed hits zero. Tuesday, CNBC’s John Carney asked the trillion-dollar question: Does that event actually mean anything? Or would a negative number in the Fed’s database work just as well?

Carney thinks it would.

Think about it. The check comes into the Federal Reserve. It looks at the U.S. government balance and discovers that we’re at zero. What does the Federal Reserve do?

I’m pretty sure the Federal Reserve would go ahead and credit the bank submitting the check with the deposit to account for the fund transfer.

What are the constraints? Then what keeps the government from giving us all a few million? Fear of inflation. Since our economy doesn’t produce enough goods to satisfy 300 million millionaires, those magically-created dollars would bid up the price of everything.

But here’s the next major point: We have unemployed workers, idle factories, empty storefronts, and so forth. The economy is just dying to produce more, if only somebody had dollars to pay for it. In this situation, there really is a free lunch: The government creates more money by spending without taxing or borrowing, and the economy creates more goods and services. No extra inflation.

Go back to the airline analogy. If Delta created and distributed massive numbers of frequent-flier miles, all the frequent-flier seats would fill up instantly, making most people’s miles more-or-less worthless. But what if most those seats had been flying empty? Then Delta could create some quantity of new miles without damaging the value of existing miles.

If you believe that, what do you do? Obviously you spend more and tax less, until the economy starts producing close to capacity.

Some of Mosler’s proposals are larger versions of things that have already been tried: suspending the collection of Social Security and Medicare taxes while continuing to pay benefits (not threatening future benefits, since the trust funds are also just data at the Fed), and giving money to the states (because it makes no sense to lay off teachers and construction workers when we still have work for them to do).

Mosler also wants to establish universal health care through a combination of a conservative idea (health savings accounts for the first $5000 each year) and a liberal idea (Medicare-for-everybody for larger expenses).

His most creative proposal is for a new category of federal job, which pays $8 per hour plus benefits. These new hires would work throughout the government rather than in a few big make-work projects. Any government office that wanted to employ them could do so without using money from its budget.

If you’ve ever worked in an office, you know that there are always useful projects that nobody can get around to doing. You may not be able to pull a shovel-ready thousand-worker project out of the air, but you could easily put two temps to work tomorrow morning, if you could just find the money.

As the economy moves closer to capacity, many of these workers will move into better jobs (aided by their continuous work history). If industry starts to have trouble finding workers, the government can ramp up the amount that the $8 workers cost project budgets.

Mosler would clean up the residue of the housing bubble in two ways: (1) Give banks freer access to loans from the Fed in exchange for tighter regulation. (2) Have the government buy foreclosed houses from the banks (making the banks eat any negative equity) and rent them back to their owners for two years. After two years, the owners have first crack at re-buying before a general auction is held.

The real economy. Probably the best thing to glean from Mosler’s book is a respect for the real economy (goods and services) as opposed to the financial economy (dollars).

This comes through clearest when you think about future generations. We have worried way too much about the numbers in future Fed databases, as if numbers make an economy robust. Instead of good numbers, we should be trying to leave future generations skills, good health, peace, a clean environment, social cohesion, and a solid physical infrastructure.

If they have those things, they will be able to produce the goods and services they need. If not, dollars won’t help them.

Short notes

I’ll examine the full debt ceiling deal next week, but early reports from people I trust (Paul KrugmanSalon’s Andrew Leonard) are calling it a “surrender” by President Obama. Hunter on Daily Kos doesn’t use that word, but basically agrees.

Prior to the deal announcement, Matt Yglesias wrote:

[A]t this point the biggest damage is to the overall system of government. Obama has successfully transformed massive debt ceiling hostage taking from an act of breathtakingly irresponsible brinksmanship into a proven effective negotiating tactic. … Every time the president’s party has fewer than 60 votes in the Senate, we may face a recurrence of this crisis.


The debt ceiling is just a distraction from the really serious economic news: The Tooth Fairy is cutting back.


Who says conspicuous consumption can’t be environmentally correct? Check out the solar-powered bikini, which can get wet and still charge an iPhone.


A mother videos what happens when she takes her son to the DMV to get one of the Voter ID cards that Wisconsin now requires if you don’t have a driver’s license. If you know your rights, you don’t have to pay the $28. But it’s still a hassle. And what problem is being solved — other than the non-drivers’ tendency to vote for Democrats?


The University of Southampton just snapped together a pilotless aircraft from pieces “printed” on a 3D printer.


A few years ago I heard Daniel Ellsberg describe how he came to leak the Pentagon Papers: “I asked myself: What can I do to end this war if I’m willing to go to prison for it?”

Tim DeChristopher recently asked the same question about global warming. His two-year prison term just started, but he says “I’m happier than I’ve ever been.”

DeChristopher’s crime? Disrupting a Bureau of Land Management oil-and-gas-lease auction by making false bids. But Grist’s Shawn Regan asks an important question: Why can’t environmentalists bid for real, with the idea of leaving the land undisturbed? Currently, winning bidders are required to develop their parcels.


Nate Silver charts it: Democratic governors are more liberal or conservative depending on the politics of their states. Republican governors have the same agenda everywhere.


Cenk Uygur’s account of how he lost his MSNBC show says a lot about mainstream media: It would be bad enough if network decisions were all about ratings. But even good ratings won’t save you if you annoy the Powers That Be.


Remember when Apple was the good corporation that was going to save us from domination by the evil IBM?

Well, now that Apple owns the app market, it is acting the same way IBM did when it owned the business-computing market and Microsoft did when it owned the desktop. Kindle and Nook can have iPad apps, but not if they’re going compete with iBooks for sales.


More evidence that terrorism is a meaningless term: Tuesday night, a Planned Parenthood clinic in Texas was firebombed. Nobody covered it.


As of this morning, the Intrade prediction market rated Rick Perry as the favorite to win the GOP nomination, with a 32% chance compared to Mitt Romney’s 28%. Michele Bachmann is back to 7%, about where she was when I recommended buying her shares. I stand by the recommendation.


Jon Stewart’s GOP: Special Victims Unit looks at right-wing fantasies of their own victimization.

“Hear that, Fido?”

We did not call it propaganda, for that word, in German hands, had come to be associated with deceit and corruption.

George Creel, How We Advertised America (1920)

In this week’s Sift:

  • The Dog Whistle Defined. How Tim Pawlenty and Rick Perry send messages to the Religious Right that they don’t want you to hear.
  • Digging Into the Deficit. When you gather together the rights charts and graphs, the deficit isn’t that complicated: We cut taxes too far, and healthcare costs are rising exponentially.
  • Short notes. If you’re not Muslim, it’s not terrorism. The debt ceiling comes down to the wire. Yesterday’s talking points are today’s deadbeats. The hazards of lying to Al Franken. Dogs and smurfs. And the week’s most interesting question: Did communists raise Captain America?
  • Last week’s most popular post. Hands down it was Meet ALEC, which at last count had 878 views (most of which came through Reddit, if I’m reading the stats right). That’s part of a national wave of attention to the secretive American Legislative Executive Council. This week the story escaped the liberal blogosphere and made it to Bloomberg News and NPR. A good way to go deeper is to look at one state in detail: ALEC Bills in Wisconsin.
  • This week’s challenge. Sign a petition to make corporations impersonal again. If it takes a constitutional amendment, let’s get one started.

I promised a follow-up on last week’s review of Warren Mosler’s Seven Deadly Innocent Frauds of Economic Policy, where I would describe his proposals. But I ran over my 3000-word weekly limit, so I’ll put that off to next week.

The Dog Whistle Defined

I’ve been ignoring Tim Pawlenty’s candidacy because the voters are. But this campaign video is worth watching purely for educational purposes. If you’ve ever wondered what the term dog whistle means, this is it:

According to Wikipedia, a dog whistle is “coded language that appears to mean one thing to the general population but has a different or more specific meaning for a targeted subgroup of the audience.”

The targeted subgroup here are evangelical Christians. The general public will find the intro (where Pawlenty and his wife testify to their faith) dull but unobjectionable. The Pawlenties believe in something; good for them. Most will get bored and stop watching. But this lengthy testimony tells Evangelicals to get out their codebooks to decrypt phrases that will follow, like:

  • people of faith. If you’re a Muslim, Jew, liberal Christian, or even a Catholic, you may think you’re a person of faith. You aren’t. Evangelicals do not use people of faith in this ecumenical way. To them, the phrase is a synonym for evangelical Christian.
  • God. Similarly, you may think that the Pawlenties are talking about your God. They aren’t. If you worship somebody other than the Lord Jesus Christ (as He is envisioned by conservative Protestants), you don’t believe in God.
  • nation under God. Not the ecumenical meaning (that America is united under a larger truth rather than divided among warring sects). Instead, this means that only a government dominated by right-wing Christians is legitimate.
  • the Founders. Not the historical politicians who wrote the Constitution. The Founders are latter-day prophets who were inspired by God to create a Christian nation. They wielded a divine authority similar to Moses or St. Paul.
  • faith in the public square. Rather than every American’s right to profess his or her beliefs in public, this phrase refers to the special right of Christians to commandeer public resources to promote their religion.

So later, when Pawlenty says:

The separation of church and state was intended to protect people of faith from government, not government from people of faith. … I think the Founders of this country made it very clear: We were founded as a nation under God. … So it’s very clear what roadmap they put out for us as it relates to faith in the public square.

codebook-holders hear him agreeing that Evangelicals have inherited the prophetic authority of the Founders. America is their country, the power and resources of the government are theirs to use, and the rest of us should be grateful for their tolerance, such as it is.

Evangelicals want to hear that message from a candidate, but Pawlenty knows he’ll offend the general public if he says it in so many words. Hence the dog whistle: They hear it; you don’t.


Another dog-whistle to the Religious Right is Rick Perry’s 1-minute invitation to “The Response“, a “call to prayer for a nation in crisis”.

This event will sail under most voters’ radar, because it sounds just like the prayer breakfasts and days-of-prayer that politicians are always associating themselves with.

But true believers will hear something different. Perry has modeled the Response after what “God called the Israelites to do in the Book of Joel”. If you haven’t read Joel lately, you probably don’t realize how apocalyptic it is. Invoking Joel implies not just that America is having hard times, but that God is smiting us for our sin.

Alas for the day! for the day of the LORD is at hand, and as a destruction from the Almighty shall it come.

Given that the Response is hosted by the American Family Association, we can guess what that sin is: tolerance of homosexuality.

A little of that apocalyptic flavor comes through in the official Response promo video, which most voters won’t bother to watch.

And then there’s the Response’s page of “endorsers”. (The Endorser link from the home page was dropped after it started getting attention, and then the page disappeared altogether.) Chances are you’ve never heard of them, but they include some of the most dangerous religious nuts in the country.

Here Mike Bickle, for example, warns his flock about “the Harlot Babylon movement”, which is “preparing the nations to receive the Antichrist”.

I believe that one of the main pastors, as a forerunner to the Harlot movement — it’s not the Harlot movement yet — is Oprah.

Oprah is the forerunner to the forerunner to the Antichrist. Who knew?

Another official Response-endorser, C. Peter Wagner, believes that the Japanese Emperor has had sex with a Sun Goddess/Demon, and that this event had real consequences for the Japanese economy.

Since the night that the present emperor slept with the Sun Goddess, the stock market in Japan has gone down. It’s never come up since.

And of course there’s John Hagee, whose endorsement John McCain had to renounce in 2008 because of Hagee’s anti-Catholic bigotry. His picture was also up there on the Endorsers’ page.

Rachel Maddow collects more of this kind of insanity from Perry’s endorsers/allies.

It’s not clear yet how many of these people will appear on stage with Perry at the Response. But their followers know that Perry’s event is their event. You should know it too.


The Response-hosting AFA is not just ideologically conservative, it is partisan for Perry. Tuesday, the AFA’s Bryan Fischer wrote that Michele Bachmann’s migraines “make a Rick Perry candidacy both inevitable and necessary.”

Liberals, interestingly enough, are not the ones piling on this issue. “I thought Hell would freeze over before I defended Michele Bachmann,” Dana Goldstein writes.


The Texas Observer describes Perry’s connections with the New Apostolic Reformation, a movement founded by the same C. Peter Wagner. The movement’s leaders talk about “infiltrating” government because “the church’s vocation is to rule history with God.”


Contrast Pawlenty’s and Perry’s dog whistles with Herman Cain, who just lays it out there for everyone to see, as during this interview with Fox News’ Chris Wallace:

WALLACE: You’re saying any community, if they want to [can] ban a mosque?

CAIN: Yes. They have a right to do that. That’s not discriminating based upon religion.

And draws this response from Minnesota’s Muslim Congressman Keith Ellison:

It’s reprehensible that [Cain] just will not relent with this bigotry and that he actually thinks it’s going to enhance his chances to get the Republican nomination. If I were a Republican, I would be outraged.

But by talking in code, Pawlenty and Perry make no headlines and leave their opponents nothing to quote.

Digging into the Deficit

At the heart of the debt-ceiling debate is the question: How did the deficit get so high? It’s really pretty simple: We cut taxes, and healthcare got expensive. It all boils down to the next two charts.

The first chart refutes John Boehner’s mantra: “Washington has a spending problem, not a revenue problem.” We’ve got both.

spending and revenue

[Source: economist Jared Bernstein, who says he got it from the Office of Management and Budget. Here at the outset, I should justify the scales. I think there are only two legitimate ways to track government spending through time: as a percentage of GDP or inflation-adjusted per capita. A common conservative trick is to show raw revenues/expenditures tracking ever upward, which just proves that the country is getting bigger.]

Revenue (in blue) peaks just before the Bush tax cuts take effect, and then takes a second plunge when the Great Recession starts in 2007. Spending (red) is in a slow downward trend from the beginning of the graph until 2000. There’s a bump in 2000-2002 that could be blamed on a recession. (Recessions not only increase safety-net spending like unemployment insurance, they lower GDP. So spending-as-a-percentage-of-GDP gets a push from both sides.) But spending stays up (probably due to the Iraq War) during the tepid “Bush Boom” of 2003-2007, before jumping again when the Great Recession hits in 2007.

The second chart focuses entirely on spending.

health care spending

[Source: Christopher Conover at the conservative American Enterprise Institute, who attributes his numbers to the federal Bureau of Economic Analysis. This chart is about total government spending — state and local as well as federal — so the percentages of GDP are higher than in the first graph. It also goes back much further. The big spike is World War II.]

Conover notes:

Between 1966 and 2007, the entire increase in the size of government relative to the economy resulted from growth in tax-financed health spending.

And Matt Yglesias draws the obvious conclusion:

[G]rowth in government spending is overwhelmingly not the consequence of grasping liberals coming up with evermore things for the government to do. Instead, the government has for a long time shouldered responsibility for health care finance, and health care is very expensive.

So a more precise statement of the deficit problem is: We have a revenue problem and a healthcare spending problem.

Now let’s dig deeper into revenue. This chart shows revenue by type of tax:

taxes by type

[Source: The Department of Numbers blog. The vertical scale is percentage of GDP.]

Income tax stays within a range, with a blip up to create the Clinton surplus, and then a dive from the Bush tax cuts. (BTW: Unless you are willfully blind, it should be obvious that tax cuts do not increase revenue.) When this chart ends in 2007 we’re near the bottom of that range.  Payroll taxes (Social Security and Medicare — in yellow) go steadily upwards, while corporate taxes go steadily downwards from nearly 6% of GDP under Eisenhower to less than 2% now.

OK, so at the very least we have a corporate tax revenue problem.

Now let’s look at income tax. Conservatives make a big deal about how much tax the rich  pay — more than ever, by just about any measure.

tax burden of the rich

But that’s mostly because they are raking off a much higher percentage of the total national income. (In 50 years, when one guy is making all the income, he’ll necessarily pay all the income tax. Wouldn’t you hate to be him?)

In fact, the effective income tax rate (i.e., what they actually pay) has dropped considerably for the very rich, even as their income has shot up.

income and tax rates of the rich[Source: Ezra Klein, who attributes it to the economists listed at the bottom of the graphic.]

So: We have a problem getting revenue from corporations and the rich, and a healthcare spending problem.

Finally, let’s delve into that healthcare problem. Part of it isn’t a problem at all. As a society, we’re spending more on healthcare partly because the healthcare industry has better products than it used to.

A century ago, hospitals couldn’t do much more for you than a dedicated family member could do at home. Today, they can. People who a generation ago would have died in their 50s from heart attacks and cancer are surviving into their 80s and dying in nursing homes. It costs more, but personally, surviving into my 80s is precisely what I want to spend my money on. The option to buy a longer life is an opportunity, not a problem.

But there is a related problem: Compared to other countries, we’re not getting what we pay for.

Americans spend more, live less

[Source: University of California Atlas of Global Inequality. This data is from 2000, but things have only gotten worse since then, as the next chart will show.]

For all our healthcare spending, we live about as long as Cubans — four years less than the Japanese, and even two years less than our Canadian neighbors. (You might picture the Japanese living some spartan lifestyle we’d find unacceptable. But Canadians?)

And while all nations are spending more on healthcare — because everybody wants a longer life — the U.S. is pulling away.

rising American costs

[Source: Ezra Klein. The vertical scale is inflation-adjusted dollars per capita.]

And that’s the worrisome issue: If we’re on a higher exponential-growth path than everyone else, eventually healthcare spending will swamp the rest of our economy.

Total cost vs. government cost. Maybe you noticed I pulled a switch: The last two charts have been about total healthcare spending, not just government healthcare spending. Only about half of our healthcare spending goes through the government (Medicare, Medicaid, Veterans Administration, etc.).

If you think that government healthcare spending is the whole problem, then you do what Paul Ryan proposed: Replace Medicare and Medicaid with capped private health-insurance subsidies. The cap can be wherever the budget needs it to be, so the government-spending problem is solved.

But if total healthcare costs stay on their exponential path, they swamp the economy anyway. Eventually the government subsidies are tiny compared to the real cost of healthcare, and middle-class people start dying of curable diseases because they can’t afford treatment.

To an extent, it already happens. The U.S. performs badly in what public-health professionals call amenable mortality — i.e., preventable deaths.

preventable deaths by country

Now, I can’t see any democracy allowing middle-class people to die for lack of care, so either we’ll scrap democracy or government will end up paying for care no matter what Ryan’s projections say. And that’s why I focus on the total cost of healthcare.

Single-payer. Paul Ryan believes dialing back government funding will slow the rising costs, but his justification is a combination of wishful thinking and just-so stories about the market. The countries that get better results do the exact opposite: Virtually all their healthcare spending goes through the government.

All the evidence of actual countries tells us this: Government healthcare is more efficient than private healthcare.

In the private part of our healthcare system, the easiest way to make money is to shift costs to somebody else  — insure the people who don’t get sick — not lower the cost of care. (Ryan’s plan is similar — it shifts costs from the government to individuals.) Only single-payer systems, where there is nobody to shift costs to, deal with the real problem.

So the long-term answer to the healthcare spending problem is paradoxical: Extend Medicare to everybody.

In the short run, it will essentially double government healthcare spending. (Done right, this would be invisible to both the federal deficit and your personal budget. What you pay now in health-insurance premiums you would instead pay as taxes.) But in the long run, a single-payer system would get our costs (and outcomes) in line with countries that do healthcare much better than we do.

Summing up. So that’s my answer to the long-term deficit: End the Bush tax cuts at least for the wealthy and maybe for everybody (because the economy did fine with the Clinton tax rates). Close loopholes until corporate taxes get back to Eisenhower-era levels. And move to a single-payer system to get healthcare costs under control.