Paul Soglin: Waxing America

Kutler on Blagojevich, Burris, and the Constitution

The nice thing about reading Stanley Kutler's* commentary on national affairs that have their roots in thorny Constitutional issues is that he informs, he educates, and he knows the topic. It's like going back to school. I did take four courses from him as both an undergraduate and graduate student at the University of Wisconsin.

Writing at Truth-dig, he cogently outlines the political and legal issues facing the United States Senate and the Democratic Party with the appointment by humbled Illinois Governor Rod Blagojevich of his nominee, Roland Burris (Burris refused seat in US Senate.):

Understanding the Constitution sometimes is like interpreting the Talmud.  Two scholarly readings bring forth three opinions. Article I, Section 5, of the Constitution is rather straightforward: “Each House shall be the judge of the Elections, Returns and Qualification of its own Members..."

Nice. Now what do they do? For the full story, go to Kutler's article: Blagojevich vs. The Senate:

 *Waxing America's favorite Emeritus Professor in the entire galaxy, the esteemed University of Wisconsin Constitutional scholar Stanley Kutler

AIG, Chase, Will Again Buy Congress, This Time With More of Our Money

As the Congressional hearings begin, Congress Begins Mapping Financial Reform,  as to how to reconstruct regulations in the financial services industry, one critical element is ignored.

To date, no one is discussing how to prevent the salvaged corporations, run by greedy, unpatriotic, egotists, from making corporate contributions that end up supporting the election of those Members of Congress who supported the bailout.

Elements of greed were identified:

...a decade-long surge in leverage, risk and mortgage-lending abuses that produced a bonanza for a handful of elite investors...

Self serving gems were offered:

"...never again have the taxpayers pay for Wall Street's mistakes," said Illinois Republican Rep. Judy Biggert

The obvious was repeated:

"There should be a moratorium on it, on bonuses, yes,"

The unregulated pirating must end:

Lawmakers at the hearing called for more disclosure by hedge funds and private equity firms, as well as more openness in markets for credit default swaps.

No one addressed what got us into this mess: the long arm of Wall Street reaching into bloated wallets and spreading the money around the United States Congress.

It allowed them to purchase our Congress with our money in an excessive and vulgar manner and:

• donate directly to campaigns.

• send the money to the United States Chamber of Commerce or All Children Matter who used it to directly influence campaigns.

• send the money to the U.S. Chamber of Commerce who funneled into front groups to indirectly influence campaigns.

• send the money to directly to front groups to directly influence campaigns.

Not one dollar of the bail out, or one dollar belonging to bailed-out companies, can be sent to any organization that attempts to lobby Congress directly or indirectly, or that attempts to influence elections, directly or indirectly.

They can have their free speech, but for now, there is no free speech for bailouts. If they want their free speech, they can reject the bailout.

Last time Wall Street purchased Congress, they used obscene profits. This time they will use our tax dollars.

Economic Disaster That A Fool Could Forecast

Like most states, we are caught up in the cruel torture of national policies that are driven by greed, imperialism, and stupidity. Readrers of Waxing America will recall that in the spring of 2007 I forecasted a stock market crash and repeated it last January, Another War; Another Recession. Whatdidyah Expect?

Last  spring I used my limited abilities in forecasting the economy and predicted a stock market crash... For the second time in my lifetime a stupid, foolish war built on lies not only wrecked havoc with another country but it is destroying the American economy.

It does not take a rocket scientist to get it right... Go on take 10% of your income and set it on fire, throw it down the toilet, or just rip it up. And just for good measure, borrow a lot of money and rip it up too.

It is so simple. You cannot destroy your resources and your assets. Imagine the homes and schools that might have been built. Billions of dollars - now that is stimulation for the economy.

I am not a genius in these matters; it is that I am not driven by blind ideology in arriving at conclusions about the ecomony. A few years experience in the public and private sectors, an understanding of history and a willingness to distance myself from bad public planning, or lack of planning, no matter how politically popular the proposal, do help.

As the fall elections approach, candidates for the Wisconsin legislature and Congress from both political parties will warm your frontal lobes with cuddly promises of 'no tax increases,' cutting fat from the budget, and reducing spending.

If you are attracted to those soft sweet sounds, complete the job and instead of voting, just get a lobotomy.

If you want a candidate who will  provide a lump of coal to warm you in your decrepit retirement, and a dull knife so you can remove your spouse's appendix by candlelight in your toothless waning years, I suggest looking for the following promises:

• A pledge to the business community to provide an educated, trained workforce, not lower taxes.
• A pledge to increase spending on education from kindergarten through the University of Wisconsin and Voc-Tech Systems.
• A commitment to spend money on infrastructure that places a priority on the environment, health, and safety.
• A commitment to regulate where appropriate and needed.
• That infratstructure will be funded through borrowing as should any reasonable capital budget item.
• The operating budget, unlike the capital budget, will be funded by general purpose revenues, and only general purpose revenues. No borrowing here.
• It will be necessary to increase taxes. The increase will be progressive and will fall on wealthier taxpayers.
• A commitment to regulate where required for health and safety.
• A declaration that international trade which exports great jobs and imports poisonous pet food and baby formula is not working.
• There will be no reductions of state revenue payments to local units of government. These reductions only end up with increase in the property tax which has the impact of shifting taxes from the wealthy to the middle class.
• On the national level there will be increases in the income tax- progressive increases.
• If we fight a war, there will be honest talk. It is impossible to have guns and butter. If we fight a war there must be sacrifices at home as well as on the battlefield.
• If the candidate tells you they are highly regarded by Wisconsin Manufacturers and Commerce (WMC), tell that candidate to move to Alaska.

 

 

It does not take a rocket scientist to get it right... Go on take 10% of your income and set it on fire, throw it down the toilet, or just rip it up. And just for good measure, borrow a lot of money and rip it up too.

It is so simple. You cannot destroy your resources and your assets. Imagine the homes and schools that might have been built. Billions of dollars - now that is stimulation for the economy.

Republicans Blaming Pelosi: They Sure Showed Her and Millions of Americans

As the dust settled on Wall Street and the savings and retirement hopes of millions of Americans crumbled, it was clear the the House Republicans had their way. The Associated Press headline said it all, Bailout bill slapped aside; record stock plunge.

Down in the  twenty-fourth paragraph, long after the carnage and mayhem were reported came this:

Republicans blamed Pelosi's scathing speech near the close of the debate — which assailed Bush's economic policies and a "right-wing ideology of anything goes, no supervision, no discipline, no regulation" of financial markets — for the defeat. It was not much different from her usual tough words against the president and his party.

If there was ever demonstrable proof of the infantile nature of the extreme right wing of the Republican Party this was it. Out of spite, create the greatest one-day loss in the history of the marketplace. So much for the rationality of capitalism.

My guess is that not far off in the future we will see today's losses recouped, but that will be little consolation to the the millions of Americans who lost billions of dollars over a hissy fit.

My thoughts about the Democrats who voted against the bill are not kind, but at least their behavior was rational. Fearful of rabid Republican opponents who would use the issue in the election a month away, they ducked, or as we like to say here at Waxing America, "A candid examination of right-wing policies and the Democrats who play along..."

Who Is Responsible for the Economic and Financial Crisis?

The present crisis is the culmination of a series of events that go back to the election of Ronald Reagan as President and flowed through the subsequent years as the right wing mastered modern day communications, particularly cable TV.

The pinnacle was in 1999 with the repeal of Glass-Steagall, the Depression Era legislation that brought regulation and some degree of consumer protection to the financial marketplace. The public would not be wandering the dark hall of manipulators, oil speculators, and other creeps who took the art of capital formation to a new low, making money by pushing paper and never creating anything of value.

The Reagan Administration gutted regulation administratively in key areas of commerce and finance and was followed by the Republican control of the Congress and the ascendancy of Newt Gingrich, culminating in the adoption of the Financial Modernization Act of 1999.

This piece of legislation was drafted in 1998, and over the next year the Republicans overcame all opposition. To understand what happened it is necessary to examine the legislative process and the political climate of the time.

The Republicans were dominant and the Democrats were on the run. Fearful of losing more Congressional representation, the Democrats often capitulated, fearful if they stood up to  Gingrich, they too would lose their next election.

True Believers:   Lead by the bill's principal author, Phil Graham, this group were cronies of the oil interests and the speculators. It included reactionaries from Gingrich to Grover Norquist.

The Supporters:  These were all of the Republicans and one Democrat in the Senate accompanied by a similar alignment in the House of Representatives, though there were more blue-dog Democrats who joined the GOP. The critical vote came when the Senate version of the bill was adopted.

On  May 6,1999, the Senate adopted its version of the bill on a vote of 54-44.  Supporting that bill was John McCain; in opposition were all Democrats except Hollings of South Carolina. Joe Biden wisely voted 'no.'

For a more detailed explanation see this post, The crisis is so bad the financial press turns bolshie, February 17, 2008.

After the House vote, the bill went to conference committee.

The Negotiators. In conference committee, negotiators  from both Houses of Congress worked out their differences. President Clinton got involved realizing that with final passage there would be a veto proof majority. The final version of the bill was adopted by the Senate in November by 90-8. Joe Biden again voted 'No.'

John McCain, in the most blatant example of cowardice, refused to vote for or against the bill. He voted 'present.'

 

For more detail: John McCain's lying is contagious

 

 

 

 

 

The McCain Palin Legacy

An examination of the speeches of both Republican candidates, John McCain and Sarah Palin, as well as their actions in public office, indicates a dismal record when it comes to the economy. While both admitted in the most cursory manner that fixing the economy and the need to create viable jobs is a high priority for the next administration, neither admitted their culpability:

• Both supported the war in Iraq.
• Both know that deficit spending is ruining the economy but lack a plan to fund that war, which is wrecking havoc with America employers and workers.
• Both are responsible for the inflation, the new highs in unemployment, and the speculation that drove up the price of oil.
• Both are long time supporters of tax cuts for the rich, the very wealthy, which only exacerbates the growing national debt. It is a record debt.
• Palin and McCain were silent during their most recent terms in public office on the pirating and exploitation of the U.S. Defense budget by private contractors who ripped off the American people of billions of dollars while our servicemen and servicewomen went unprotected in their Humvees.  Can you say ,"Blackwater, or Halliburton?"This is inexcusable for Palin who governs portions of the United States only 50 miles from Russia.

The Republicans have a plan for all of this.

In the next two months we will see swiftboating of Barack Obama that will make the attack launched against Senator Kerry look like a bathtub flotilla.

Pilots complain airlines restrict fuel to cut cost - Airlines Say Pilots Lie

From the AP: Pilots complain airlines restrict fuel to cut cost

WASHINGTON - Pilots are complaining that their airline bosses, desperate to cut costs, are forcing them to fly uncomfortably low on fuel.

You heard it here first: 

United Airlines Fuel-less Skies (June 23, 2008)

Friday was a first. We departed a bit late but the flight was managed well when we boarded and things progressed nicely as we headed west.  Then, unexpectedly, the pilot announced that our non-stop flight was going to put down in Denver for a thirty minute fueling.

Otherwise, we would not make our destination.

In these pricey times, while the airlines are unforgiving to passengers who need to rebook a flight, have two suitcases to check, or forget to keep their mileage account current, the carriers haul as little fuel as possible to reduce weight and save money.

Someone miscalculated and we did not have enough fuel. No rebates, no coupons, no extra miles were offered.  All we got was the official  apology from the pilot who pointed out that "It is better to be on the ground and wishing you were in the air than being in the air and wishing you were on the ground."

United Airlines Fuel-less Skies II (June 27, 2008)

United is two for two this past week with my flights. Heading west we had to make a stop in Denver since we were running out of fuel, United Airlines Fuel-less Skies. That was Friday.

On Wednesday I was scheduled to fly into Denver. Wind sheer caused us to circle and then the pilot announced we were to head to Fort Collins since we were running out of fuel. That is a twenty minute flight. We refueled for forty minutes, took off and twenty minutes later landed in Denver.

In the AP story the airlines prove they are full of it:

American and US Airways blame the complaints on heated labor negotiations — both are in contract talks with the complaining unions.

"It's not a safety issue; it's a contract issue," said John Hotard, a spokesman for American.

I have been there. If either of my flights had run into major weather problems, there might not have been enough fuel to make a safe landing without declaring a fuel emergency.

McCain Should Be "Sick At Heart." No friend of war or peace.

As he simultaneously attempts to distance himself from the George W. Bush's Iraq policies and his own troublesome relationship with veterans, Republican Party presidential nominee John McCain, tells us that he is "sick at heart by the many mistakes made by civilian and military commanders and the terrible price we have paid..."

He should be.

As a witness to the Vietnam War debacle, McCain should not have bullied his Congressional colleagues into supporting a war built on lies and a lust for making the oil barons billions.

McCain knew that loyal Americans should have carefully scrutinized the shoddy claims of Rumsfeld and Chaney, and their puppet, Bush. McCain's own experiences in the Vietnam War obviously were not sufficient to empower him with the judgment to make military decisions.

Now al Queda, once trapped in the mountains of Afghanistan and Pakistan, flourishes in Iraq, the greater Middle East,  and North Africa. McCain is on the defensive with veterans who expect the federal government to modestly assist in their college pursuits and furtherer workforce development. As the Wall Street Journal reported, McCain has the most preposterous reason for opposing the legislation. He is concerned that the bill would decrease the number of noncommissioned officers who would leave the military to further their education.

Barack Obama, younger and supposedly more inexpereinced, clearly can be trusted.

McCain is no friend of war or peace.

Tax Nonsense Coming Your Way

In the coming weeks, Wisconsinites will be inundated with misinformation, bad math, and assorted ideological drivel from snake-oil salesmen purporting to be experts on taxes. You can expect to hear from the groups ranging from the phony "non-partisan" Tax Foundation to our own Wisconsin Manufacturers & Commerce (WMC).

The theme will be simple and misinformed. The public will be told that sometime in early May they are finally working for themselves, that until then, their year's income went to government. Wisconsinites will be reminded that while residents of other states will heave earned enough to pay the tax bill by April 22nd or 23rd, Badger state residents will be working until at least the first of May for the governement.

We will be told that in Wisconsin we suffer the seventh or perhaps, the fifth highest tax burden in the United States.

And the facts are:

• All of these studies are flawed, badly flawed. When it comes to total government revenues Wisconsin ranks around 23rd or 25th, depending upon which study you use. Wisconsin collects very little of its revenues in fees and these studies do not include that less progressive revenue collection. Other states may have lower tax collections than Wisconsin but their heavy reliance on fees takes a bigger bite from the taxpayer.
• Theses studies never look at results  -the quality of the public service.
• These studies never examine the externalities of public service. The city of Madison operates Monona Terrace at a loss. But while the revenues do not show up in the Monona Terrace ledger, the facility brings in hundreds of thousands of dollars in sales taxes and tens of millions of dollars that stimulate the regional economy.
• These studies overlook obvious differentiations between governments. For example, a comparison of per capita spending between Milwaukee and Madison is meaningless unless the author factors in that public transit is in the Madison municipal budget, while in Milwaukee, the county operates the transit system.

Stanley Kutler: Where's FDR When You Need Him?

Waxing America's favorite Emeritus Professor in the entire galaxy, the esteemed University of Wisconsin Constitutional scholar Stanley Kutler is at it again: Where's FDR When You Need Him? Bush's 'Trickle-Down' Economic Policies Useless For Those at the Bottom

Despite his detractors, then and now, Roosevelt energized popular government—and American democracy emerged stronger with his presidency. New Deal programs, combining relief, recovery and reform, and, ultimately aided by World War II and the Cold War, revitalized capitalism, launching an era of unprecedented prosperity. FDR’s Inaugural Address opened on an auspicious note: “We have nothing to fear but fear itself.”
...

...In 1932, Walter Lippmann, the prominent public philosopher, described FDR as merely “a pleasant young man,” without any particular qualifications, who very much wanted to be president of the United States. Indeed, FDR had little in his record that the public could have anticipated a president worthy of the company of Washington and Lincoln. A week after the inauguration, Lippmann – certainly no stranger to changing his mind – praised the new president: “In one week the nation, which had lost confidence in everything and everybody, has regained confidence in the government and itself."...

Kutler is not the only one thinking of FDR during this nomination process. The following is from a post I started but never finished last week:

Barack Obama and the Legacy of FDR

Americans who supported both John Kennedy and Bill Clinton in their respective presidential campaigns were optimistic that a new better day was in store for Americans.

But not since FDR inaguration has there been such a need for the infusion of fairness into our institutions. Just as small, but significant changes, allowed the Bush Administration to create the foundation for an oligarchy, small changes will allow new opportunities for all Americans.

There is no doubt in my mind that after four years of an Obama administration this nation will be freer and safer.

There will be demand in some quarters for more rapid change. No doubt it will take at least two years for Americans to begin to see changes implemented, as it will take near heroic efforts to alter the course of the enormous ship of government that is rife with payoffs, handouts, and greed.

Frankly, I will feel far safer with Obama answering the phone no matter who is calling: a tin horn dictator or foreign minister, a Senator, a corporate executive, or a paid lobbyist.