How Wall Street Drives Up Gas Prices — Ripping Us Off and Killing Jobs

AlterNet / By Les Leopold

Next time you fill up your tank, remember that $10 to $25 is going right from your pocket to the financial sector.
May 3, 2012 |

Gasoline prices have been falling in recent weeks, but they’re still close to their five-year high after climbing steeply for three years. For every penny increase at the pump, $1.4 billion per year leaves our collective pockets, creating a drag on the sluggish “recovery.” Where does it go and what caused the price explosion at the pump?

It’s a common belief that oil prices are set on the world market by supply and demand. Less supply and/or more demand causes prices to rise. Oil is getting harder to find; OPEC is holding back supply; China and India are guzzling it up; Iran is threatening to blow it up. And regulations are getting in the way of drill, baby, drill — end of story.

But this fixation on blind market forces ignores the fact that Wall Street is financializing the commodities markets – especially oil – as it seeks new ways to pick our pockets. The same greedy swindlers who puffed up the housing bubble and then milked it dry are now hard at work doing the same with gasoline.

What is financialization and why is it coming to the oil industry?

Here’s a chilling definition provided by economist Thomas I. Palley (PDF):

Financialization is a process whereby financial markets, financial institutions, and financial elites gain greater influence over economic policy and economic outcomes…..Its principal impacts are to (1) elevate the significance of the financial sector relative to the real sector, (2) transfer income from the real sector to the financial sector, and (3) increase income inequality and contribute to wage stagnation.

In short, we’re talking about the spread and growing supremacy of financial gambling – the ability to bet on the prices of goods produced in the real economy without actually owning those goods.

The vital activities of manufacturing, resource extraction and agriculture are turned into financial instruments that can be rapidly bought and sold. More to the point, financialization allows financial gamblers to extract profits from the real economy to enrich themselves without producing any real economic value for our economy.

When markets are financialized, they offer a myriad of ways for Wall Street firms to bend or break laws to manipulate markets and haul in enormous profits. In effect, financialization extracts a hidden tax from the real economy which is then passed onto us in the form of higher prices, economic hardship and then government bailouts when it all comes crashing down.

The oil markets have become just another profitable Wall Street casino. Why? Because, as the infamous outlaw Willie Sutton said, “That’s where the money is.” Oil markets as well as other commodity markets require a certain number of speculators. Oil producers and end users go to these markets in order to lock in prices for the products they use or sell. From refiners to shippers to airlines, oil markets provide a way to obtain price certainty for a specified period of time. To make these markets function, speculators are needed to take the other side of those trades. For more than a century about 30 percent of these commodity markets involved speculators and 70 percent of the participants in terms of volume were real producers, distributors and users. That’s what a healthy commodities market looks like.

But once financialization metastasized, the proportions flipped. Now 70 percent of the action comes from speculators, while only 30 percent comes from those who really produce, distribute and use the actual commodities. The casino has taken over.

This speculative invasion is why gasoline prices are climbing rapidly. The only question remaining is how much of the price rise is due to excess speculation. Here’s what the experts say:

The St. Louis Federal Reserve (not exactly a Marxist institution) claims that 15 percent of the rise in gasoline prices is due to Wall Street speculation (PDF).

A report from the House Committee on Government Oversight claims that up to 30 percent of the rise may be due to speculators.

Even experts at Goldman Sachs, of all places, say that “excessive speculation is causing oil prices to spike by up to 40%.”

And Saudi Arabia, ”the largest exporter of oil in the world, told the Bush administration back in 2008, during the last major spike in oil prices, that speculation was responsible for about $40 of a barrel of oil.”

This flip in the balance of real economic activity and speculation is precisely what John Maynard Keynes warned us about more than 75 years ago:

“Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. The measure of success attained by Wall Street, regarded as an institution of which the proper social purpose is to direct new investment into the most profitable channels in terms of future yield, cannot be claimed as one of the outstanding triumphs of laissez-faire capitalism….”
Who are the speculators?

Senator Bernie Sanders released classified documents revealing the names of the largest speculators in the oil markets as of 2008.

A look at the top 20 speculators reveals that only five are actually involved in producing, shipping, refining and consuming oil (Vitol, CMA, ENA, Semgroup and Emirates Oil). The other 15 are banks and investment houses – a virtual who’s who of Wall Street firms that puffed up the housing bubble and took down the economy. Goldman Sachs, Morgan Stanley, JP Morgan Chase, Merrill Lynch, Citigroup — they all make the list.

A tale of two casinos

It’s stunning to compare the similarities between the housing bubble and the rise in oil prices. Just take a look at the two charts below. The first shows the price of a barrel of oil after eliminating the impact of inflation. You can see the price spike in the 1970s during the Iranian oil boycott, and then in the 1990s during the Persian Gulf War. Clearly, those significant geopolitical events disrupted supplies and had a real impact on the price of oil.

But look what happened when the Wall Street big boys jumped into the oil speculative business right around 2002-’03. The price of oil went bonkers. The gyrations were far more extreme than any of the previous geopolitical events. There is no rational supply-and-demand explanation that accounts for that dramatic rise. Sure, after the economy crashed in 2008 prices declined. That makes sense. But up again goes the price of oil even though we’re facing nothing like the supply and demand shifts caused by oil boycotts and wars. Then again, maybe it does indicate a new war – Wall Street versus the rest of us.

(click for larger version)
Now take a look at the housing bubble graph – similar shape, similar timing. And that’s no coincidence. When Wall Street turns a market into an enormous casino, prices skyrocket and the economy is threatened. Wall Street did it to housing and now they’re doing it again to commodities — especially oil.

(click for larger version)
Wall Street oil speculators kill jobs

When Wall Street jacks up gasoline prices through its speculative activities, it has two job-killing impacts. First, it sucks money out of our pockets to pay for gasoline, which in turn means we have less money to spend on other goods and services in the real economy. It’s the equivalent of an anti-stimulus tax. As gasoline prices go up, economic demand falters and workers in the real economy are laid off.

The second impact is more complex but just as real to unemployed oil workers on the East Coast where several refineries in the Philadelphia area are being shut down even though the price of refined gasoline is rising.

Here’s where it gets tricky. The East Coast gets its oil primarily from the North Sea. That’s called Brent oil. The rest of the country gets most of its oil from the Gulf Coast. That’s called West Texas. The two kinds of oil are very similar in content and traditionally were similarly priced. Not any more.

As the chart below illustrates, a gap has emerged so that Brent oil is now significantly more expensive. This means that the oil coming into East Coast refineries is more costly to refine. But the increased cost can’t be passed on at the pump because the national prices are mostly set by the lower cost West Texas oil (and from European refineries that are dumping gasoline in the U.S. as Europe switches more and more to diesel). As a result, East Coast refinery profits are squeezed, which in turn leads to the shutdowns.

But what accounts for the split between the two prices of oil? Some experts say Brent oil is becoming more expensive because other oil supplies coming into Europe from the Middle East are more vulnerable and uncertain due to the Iranian situation and the Arab Spring. Maybe so. But speculation also is at work. Because oil speculation regulations are more lax in London, it is likely that Brent oil is the raw material for a more profitable casino. As Wall Street money pours in, up go the prices…and down go the refineries and thousands of refinery workers.

(click for larger version)
But wait, isn’t Wall Street helping the environment by driving up gasoline prices?

Without question the rise in gasoline prices moves the nation toward more fuel-efficient cars, which in turn will reduce greenhouse gas pollution. But relying on Wall Street to cause this dynamic is ridiculous, foolish and grossly unfair. First, because Wall Street speculators not only drive up prices they create price instability – rising prices followed by rapid crashes. If a recession follows, gas prices will crash and the incentive to purchase fuel-efficient cars will disappear. Second, rising gas prices without offsetting credits for low-income people are very regressive – meaning lower-income people pay a higher share of their income on fuel costs.

But more galling is the fact that Wall Street speculators are pocketing what amounts to a gas tax as if they were the duly-elected government of the United States (maybe they are the government, but not duly-elected).

If we want to tax carbon for the sake of the environment (and we should), then the government should do so and collect the revenues, not Wall Street. And if we think that Wall Street’s nefarious way is better than nothing at all, than heaven help us.

How do we rein in the speculation?

President Obama recently called for $58 million in order to put “more cops on the beat” at the regulatory agencies that police the commodities markets. Supposedly these extra cops would be able to prosecute more cases of price manipulation and other blatant violations of the rules and regulations that govern commodity trading.

This effort, while laudable, doesn’t go nearly far enough. The best way to check speculation may be through a financial transaction tax that makes it less profitable to speculate in commodity markets. A relatively small tax on all financial transactions would likely reduce the number of bogus speculators. That’s the only message they understand. Enforcement of weak rules matters little to those who spend all their waking hours playing and dreaming up new financial casino games. The only way forward is to take away their chips.

Unfortunately, the Obama administration opposes any and all financial taxes for fear they will upset financial markets. Well, this market is already upset by financial greed and corruption. Hopefully, the administration will learn before it’s too late that the American people are sick and tired of being fleeced by Wall Street.

In the meantime, next time you fill up your tank, remind yourself that something like $10 to $25 is going right from your pocket to Wall Street. Maybe that will get us to join the fight for a financial transaction tax. It’s long overdue.

Posted in Class Warfare, Declining America, Global Warming | Tagged , , , , , | Leave a comment

Too Hot Not to Notice?

A Planet Connected by Wild Weather

Bill McKibben
Author of a dozen books, including ‘The End of Nature’ and ‘Deep Economy’
Cross-posted with TomDispatch.com

The Williams River was so languid and lovely last Saturday morning that it was almost impossible to imagine the violence with which it must have been running on August 28, 2011. And yet the evidence was all around: sand piled high on its banks, trees still scattered as if by a giant’s fist, and most obvious of all, a utilitarian temporary bridge where for 140 years a graceful covered bridge had spanned the water.

The YouTube video of that bridge crashing into the raging river was Vermont’s iconic image from its worst disaster in memory, the record flooding that followed Hurricane Irene’s rampage through the state in August 2011. It claimed dozens of lives, as it cut more than a billion-dollar swath of destruction across the eastern United States.

I watched it on TV in Washington just after emerging from jail, having been arrested at the White House during mass protests of the Keystone XL pipeline. Since Vermont’s my home, it took the theoretical — the ever more turbulent, erratic, and dangerous weather that the tar sands pipeline from Canada would help ensure — and made it all too concrete. It shook me bad.

And I’m not the only one.

New data released last month by researchers at Yale and George Mason universities show that a lot of Americans are growing far more concerned about climate change, precisely because they’re drawing the links between freaky weather, a climate kicked off-kilter by a fossil-fuel guzzling civilization, and their own lives. After a year with a record number of multi-billion dollar weather disasters, seven in ten Americans now believe that “global warming is affecting the weather.” No less striking, 35 percent of the respondents reported that extreme weather had affected them personally in 2011. As Yale’s Anthony Laiserowitz told the New York Times, “People are starting to connect the dots.”

Which is what we must do. As long as this remains one abstract problem in the long list of problems, we’ll never get to it. There will always be something going on each day that’s more important, including, if you’re facing flood or drought, the immediate danger.

But in reality, climate change is actually the biggest thing that’s going on every single day. If we could only see that pattern we’d have a fighting chance. It’s like one of those trompe l’oeil puzzles where you can only catch sight of the real picture by holding it a certain way. So this weekend we’ll be doing our best to hold our planet a certain way so that the most essential pattern is evident. At 350.org, we’re organizing a global day of action that’s all about dot-connecting; in fact, you can follow the action at climatedots.org.

The day will begin in the Marshall Islands of the far Pacific, where the sun first rises on our planet, and where locals will hold a daybreak underwater demonstration on their coral reef already threatened by rising seas. They’ll hold, in essence, a giant dot — and so will our friends in Bujumbura, Burundi, where March flooding destroyed 500 homes. In Dakar, Senegal, they’ll mark the tidal margins of recent storm surges. In Adelaide, Australia, activists will host a “dry creek regatta” to highlight the spreading drought down under.

Pakistani farmers — some of the millions driven from their homes by unprecedented flooding over the last two years — will mark the day on the banks of the Indus; in Ayuthaya, Thailand, Buddhist monks will protest next to a temple destroyed by December’s epic deluges that also left the capital, Bangkok, awash.

Activists in Ulanbataar will focus on the ongoing effects of drought in Mongolia. In Daegu, South Korea, students will gather with bags of rice and umbrellas to connect the dots between climate change, heavy rains, and the damage caused to South Korea’s rice crop in recent years. In Amman, Jordan, Friends of the Earth Middle East will be forming a climate dot on the shores of the Dead Sea to draw attention to how climate-change-induced drought has been shrinking that sea.

In Herzliya, Israel, people will form a dot on the beach to stand in solidarity with island nations and coastal communities around the world that are feeling the impact of climate change. In newly freed Libya, students will hold a teach-in. In Oman, elders will explain how the weather along the Persian Gulf has shifted in their lifetimes. There will be actions in the cloud forests of Costa Rica, and in the highlands of Peru where drought has wrecked the lives of local farmers. In Monterrey, Mexico, they’ll recall last year’s floods that did nearly $2 billion in damage. In Chamonix, France, climbers will put a giant red dot on the melting glaciers of the Alps.

And across North America, as the sun moves westward, activists in Halifax, Canada, will “swim for survival” across its bay to highlight rising sea levels, while high-school students in Nashville, Tennessee, will gather on a football field inundated by 2011’s historic killer floods.

In Portland, Oregon, city dwellers will hold an umbrella-decorating party to commemorate March’s record rains. In Bandelier, New Mexico, firefighters in full uniform will remember last year’s record forest fires and unveil the new solar panels on their fire station. In Miami, Manhattan, and Maui, citizens will line streets that scientists say will eventually be underwater. In the high Sierra, on one of the glaciers steadily melting away, protesters will unveil a giant banner with just two words, a quote from that classic of western children’s literature, The Wizard of Oz. “I’m Melting” it will say, in letters three-stories high.

This is a full-on fight between information and disinformation, between the urge to witness and the urge to cover-up. The fossil-fuel industry has funded endless efforts to confuse people, to leave an impression that nothing much is going on. But — as with the tobacco industry before them — the evidence has simply gotten too strong.

Once you saw enough people die of lung cancer, you made the connection. The situation is the same today. Now, it’s not just the scientists and the insurance industry; it’s your neighbors. Even pleasant weather starts to seem weird. Fifteen thousand U.S. temperature records were broken, mainly in the East and Midwest, in the month of March alone, as a completely unprecedented heat wave moved across the continent. Most people I met enjoyed the rare experience of wearing shorts in winter, but they were still shaking their heads. Something was clearly wrong and they knew it.

The one institution in our society that isn’t likely to be much help in spreading the news is… the news. Studies show our papers and TV channels paying ever less attention to our shifting climate. In fact, in 2011 ABC, CBS, NBC, and Fox spent twice as much time discussing Donald Trump as global warming. Don’t expect representatives from Saturday’s Connect the Dots day to show up on Sunday’s talk shows. Over the last three years, those inside-the-Beltway extravaganzas have devoted 98 minutes total to the planet’s biggest challenge. Last year, in fact, all the Sunday talk shows spent exactly nine minutes of Sunday talking time on climate change — and here’s a shock: all of it was given over to Republican politicians in the great denial sweepstakes.

So here’s a prediction: next Sunday, no matter how big and beautiful the demonstrations may be that we’re mounting across the world, “Face the Nation” and “Meet the Press” won’t be connecting the dots. They’ll be gassing along about Newt Gingrich’s retirement from the presidential race or Mitt Romney’s coming nomination, and many of the commercials will come from oil companies lying about their environmental efforts. If we’re going to tell this story — and it’s the most important story of our time — we’re going to have to tell it ourselves.

Bill McKibben, a TomDispatch regular, and the author, most recently, of Eaarth: Making a Life on a Tough New Planet, is the founder of 350.org, which is coordinating Saturday’s Connect the Dots day. You can find the event nearest you by checking climatedots.org.

Posted in Uncategorized | Leave a comment

Why Is the Conservative Brain More Fearful? The Alternate Reality Right-Wingers Inhabit Is Terrifying

Walk a mile in your ideological counterparts’ shoes…if you dare.

AlterNet / By Joshua Holland

May 2, 2012

Consider for a moment just how terrifying it must be to live life as a true believer on the right. Reality is scary enough, but the alternative reality inhabited by people who watch Glenn Beck, listen to Rush Limbaugh, or think Michele Bachmann isn’t a joke must be nothing less than horrifying.

Research suggests that conservatives are, on average, more susceptible to fear than those who identify themselves as liberals. Looking at MRIs of a large sample of young adults last year, researchers at University College London discovered that “greater conservatism was associated with increased volume of the right amygdala” ($$). The amygdala is an ancient brain structure that’s activated during states of fear and anxiety. (The researchers also found that “greater liberalism was associated with increased gray matter volume in the anterior cingulate cortex” – a region in the brain that is believed to help people manage complexity.)

That has implications for our political world. In a recent interview, Chris Mooney, author of The Republican Brain, explained, “The amygdala plays the same role in every species that has an amygdala. It basically takes over to save your life. It does other things too, but in a situation of threat, you cease to process information rationally and you’re moving automatically to protect yourself.”

The finding also fits with other data. Mooney discusses studies conducted at the University of Nebraska-Lincoln in which self-identified liberals and conservatives were shown images – apolitical images – that were intended to elicit different emotions. Writing at Huffington Post, Mooney explains that “there were images that caused fear and disgust — a spider crawling on a person’s face, maggots in an open wound — but also images that made you feel happy: a smiling child, a bunny rabbit.” The researchers noted two differences between the groups. The researchers studied their subjects’ reactions by tracking their eye movements and monitoring their “skin conductivity” – a measure of one’s autonomic nervous system’s reaction to stimuli.

Conservatives showed much stronger skin responses to negative images, compared with the positive ones. Liberals showed the opposite. And when the scientists turned to studying eye gaze or “attentional” patterns, they found that conservatives looked much more quickly at negative or threatening images, and [then] spent more time fixating on them.

Mooney concludes that this “new research suggests [that] conservatism is largely a defensive ideology — and therefore, much more appealing to people who go through life sensitive and highly attuned to aversive or threatening aspects of their environments.”

But those cognitive biases are only part of the story of how a political movement in the wealthiest, most secure nation in the world have come to view their surroundings with such dread. The other half of the equation is a conservative media establishment that feeds members of the movement an almost endless stream of truly terrifying scenarios.

The phenomenon of media “siloing” is pretty well understood – in an era when dozens of media sources are a click away, people have a tendency to consume more of those that conform to their respective worldviews. But there is some evidence that this phenomenon is more pronounced on the right – conservative intellectuals have had a long-running debate about the significance of “epistemic closure” within their movement.

So conservatives appear to be more likely to be hard-wired to be highly sensitive to perceived threats, and their chosen media offers them plenty. But that’s not the whole story because of one additional factor. Since 9/11, and especially since the election of President Barack Obama, one of the most significant trends in America’s political discourse is the “mainstreaming” of what were previously considered to be fringe views on the right. Theories that were once relegated to the militia movement can now be heard on the lips of elected officials and television personalities like Glenn Beck.

Consider, then, what it must be like to be a true-blue Rush Limbaugh fan, or someone who thinks Michele Bachmann is a serious lawmaker with a grasp of the issues – put yourself into that person’s shoes for a moment, and consider what a nightmarish landscape the world around them must represent:

The White House has been usurped by a Kenyan socialist named Barry Soetero, who hatched an elaborate plot to pass himself off as a citizen of the United States – a plot the media refuse to even investigate. This president doesn’t just claim the right to assassinate suspected terrorists who are beyond the reach of law enforcement – he may be planning on rounding up his ideological opponents and putting them into concentration camps if he is reelected. He may have murdered a blogger who was critical of his administration, but authorities refuse to investigate. At the very least, he is plotting on disarming the American public after the election, in accordance with a secret deal cut with the UN and possibly with the assistance of foreign troops.

Again, these ideas are not relegated to the fringe of forwarded emails. Glenn Beck talked about FEMA camps on Fox News (he later debunked them, which only fueled charges of a media coverup); dozens of Republican elected officials have at least hinted that they are birthers, while an erstwhile front-runner for the GOP nomination has repeatedly claimed that Obama is not eligible to be president. The head of the NRA, and the GOP’s presidential nominee have both claimed Obama is plotting to take Americans’ guns.

In reality, Americans are safer and more secure today than at any point in human history. But inhabitants of the world of the hard-right are surrounded by danger – from mobs of thugs at home to a variety of powerful and deadly enemies abroad.

For the true believers, Latin American immigration isn’t a phenomenon to be managed, but a grave existential threat. A plot to “take back” large swaths of the Southwest is a theory that has aired not only on obscure right-wing blogs, but on Fox and CNN. On CNN, Lou Dobbs claimed immigrants were spreading leprosy; Rick Perry, Rep. Louie Gohmert and other “mainstream” voices on the right (that is, people with platforms) agree that Hezbollah and Hamas “are using Mexico as a way to penetrate into the southern part of the United States,” possibly with the aid of “terror babies” carried in pregnant women’s wombs.

In the real world, the rate of violent crime in the US is at the lowest point since 1968 – in fact, it is somewhat of a mystery that the violent crime rate has continued to decline even in the midst of the Great Recession. It’s also true that 84 percent of white murder victims are killed by other whites. But if you read the Drudge Report, or check in at Fox, on any given day you will see extensive coverage of any incident in which a black person harms a white person. These fit in with the narrative – advanced by people like Glenn Beck and long-touted by Ron Paul – that we stand on the brink of a race war, led by the New Black Panthers (just consider how frightening it would be if there were more than a dozen New Black Panthers, or if they did more than say stupid things). Marauding “flash-mobs” of black teens – a near-obsession at many conservative outlets these days — are simply a harbinger of things to come.

Continue, for a moment, to stroll in the shoes of a true believer on the right. Imagine how frightening it would be to believe Frank Gaffney, a former Assistant Secretary of Defense in the Reagan administration and leading neoconservative voice, when he claims the Muslim Brotherhood has infiltrated the highest levels of the US government, or Newt Gingrich, when he says that “sharia law” (there isn’t such a thing in the way conservatives portray it – as a discrete canon of laws) poses a grave threat to our way of life.

Imagine believing that the Democrats’ business-friendly insurance reforms included panels of bureaucrats who would decide when to let you die, as Sarah Palin infamously suggested. Or that virtually the entire field of climatology is perpetrating a “hoax,” as senator James Inhofe claims, in order to undermine capitalism and impose a one-world government. Imagine seeing energy-efficient lightbulbs as part of an international plot to, again, undermine capitalism, as Michele Bachmann believes. Imagine thinking that the public school system “indoctrinates” young children into the “gay lifestyle,” as influential members of the religious right – Pat Dobson, Bryan Fischer, Anita Bryant – have claimed for years. Imagine believing our electoral system is tarnished by massive voter fraud or that union thugs are running amok or that the Department of Homeland Security is making a list of people who advocate for “limited government.” Imagine if there really were a War on Christmas!

These dark narratives come in addition to more run-of-the-mill fearmongering about the Iranian “threat,” or nonsense about how “entitlements” are leading our economy to look like Greece’s. Those of us in the “reality-based community” may look at these specters haunting the right with exasperation or amusement, but just consider for a moment how bleak the world looks to those who buy into these ideas.

Perhaps the most frightening part of all of this for the true believers is that even though these things aren’t just fringe ideas circulating in forwarded emails – they’re discussed by influential politicians and on leading cable news outlets – the bulk of the media and most elected officials refuse to investigate what’s happening to this country.

That one ideological camp is so consumed with fear also has a lot to do with why conservatives and liberals share so little common ground. Progressives tend to greet these narratives with facts and reason, but as Chris Mooney notes, when your amygdala is activated, it takes over and utterly dominates the brain structures dedicated to reason. Then the “fight-or-flight” response takes precedence over critical thinking.

Joshua Holland is an editor and senior writer at AlterNet. He is the author of The 15 Biggest Lies About the Economy: And Everything else the Right Doesn’t Want You to Know About Taxes, Jobs and Corporate America. Drop him an email or follow him on Twitter.

Posted in Declining America, Politics, Terror | Tagged | Leave a comment

quote of the day

“When they give you lined paper, write the other way.”
Juan Ramón Jiménez
Nobel Prize-winning writer

Posted in Uncategorized | Leave a comment

Who Pays the Bill for Wall Street’s Mess?

Robert L. Borosage
President, Institute for America’s Future

Yesterday, House Republicans rolled out their budget plan in the Washington version of a Hollywood movie opening. There was a star turn for Budget Chair Paul Ryan at a conservative think tank. Gaseous rhetoric — “liberties endangered, time to choose” — fouled the air. There were dueling videos, and furious salvos of partisan messaging. And a backup document — the “Path to Prosperity” — festooned with tables for wonks to wallow in.

Today, with fewer trumpets and less fanfare, the Congressional Progressive Caucus releases its budget plan — A Budget for All.

Each of the two documents is designed to define a message. Their contrasts help clarify the real choices the country faces. Federal deficits exploded after Wall Street’s excesses blew up the economy. The questions now are who gets the bill and when does the payment start? Ryan’s Republican budget and the CPC’s offer starkly different answers that would take the country in starkly different directions.

The Bathtub Fantasy

“My goal is to cut government… to get it down to the size where we can drown it in the bathtub.” Grover Norquist.

Ryan’s Republican budget, like a speedo bathing suit on a corpulent geezer, is revealing, but not flattering. Even by Washington standards, this is a remarkably dishonest document. It claims to be serious, but offers targets that are simply preposterous. It calls for leveling with the American people, but cravenly ducks laying out who will pay for top end tax cuts. It calls itself a “blueprint for American renewal” while systematically trampling the American dream.

Republicans have lined up like lemmings to sign Grover Norquist’s infamous pledge never to raise taxes on anyone at any time. But turns out they even treat the quips of the conservative gadfly as gospel. As the Center for Budget and Policy Priorities pointed out, the Ryan budget, by its own numbers, assiduously pursues Grover’s bathtub fantasy.

The Congressional Budget Office reports that under the Ryan budget, by 2050 most of the federal government would simply cease to exist. Ryan’s budget would shrink all federal expenditures outside of interest payments, Social Security, Medicare, Medicaid and children’s health to 3.75 percent of gross domestic product (GDP).

To translate that arcane measure, CBO notes that “spending for defense alone has not been lower than 3 percent of GDP in any year [since World War II]. ” Ryan and Republicans call for increasing defense spending — so the rest of the government would have to be cut to bathtub size. Ryan argues that the “challenges this nation faces are among the largest in its history,” but the budget target he offers is, well, goofy.

Tribunes of the 1%

With this budget, Republicans choose to be the tribunes of the 1%. They send the bill not to the banks that blew up the economy or the wealthy that enjoyed the party, but to the elderly, the middle class and the poor. Consider:

• Cut Taxes on The Rich. At a time of extreme inequality — with the top 1 percent capturing a staggering 93 percent of all income gains in 2010 — Republicans would dramatically lower taxes on the wealthiest Americans and, by definition, raise them on working families.

[Ryan isn't candid enough to admit to that, of course. He extends the top end Bush tax cuts, cuts top income tax rates to 25 percent, sustains lower rates on wealth (capital gains, dividends, millionaires' estates) while claiming the reforms will raise as much money by eliminating loopholes and tax breaks that he refuses to specify. But the only way to raise enough money to do that is to go after the biggest deductions -- limit the mortgage deduction for middle class homeowners and/or cut the tax benefits for employers provided health care. The first would add to housing woes; the second would lead more employers to stop providing health care. Both reforms that would directly hit working families.]

• Cut Health Care for Millions. With health care costs soaring and employers cutting back on health insurance benefits, the Republican budget would add millions to the rolls of the uninsured by eliminating the Obama health care reforms, with no program in its place.

• End Medicare as We Know It. With boomers headed into retirement and soaring Medicare and Medicaid costs driving projected deficits, we have to get health care costs under control. But instead of taking on the drug and insurance companies and the hospital complexes that drive up costs, the Republican budget would end Medicare as we know it, requiring seniors to pay more. When today’s 55-year-olds retire, they would discover that Medicare has been turned into a voucher or “premium support” program that will not keep up with health care costs, forcing them to pay thousands more out of their own pockets. The Republican budget would also cut Medicaid support drastically for the most vulnerable — the impoverished, the disabled, and the terminally ill.

• Cut Access to College. With college tuition soaring and more and more people being priced out of the education they have earned and need, the Republican budget would solve the problem by cutting back on student loan and grant programs. They would ration college admission by income rather than by merit.

• The Poor Pay for Deficit Reduction. And with poverty rising, the Republican budget would require that the poorest and most vulnerable Americans bear much of the burden of reducing the deficits that exploded when Wall Street blew up the economy. (Although, again, Republicans don’t admit which domestic programs would take the hit. But, by reducing spending on domestic discretionary programs by one third in 10 years, they insure devastating cuts in everything from Head Start to education to disease control.)

• Let America Decline. With our basic infrastructure — from roads to schools to sewage systems — in dangerous decline, the construction industry flat on its back, and interest rates near record lows, Republicans call for spending less, not more, on rebuilding America, costing jobs, and rendering our economy less competitive and putting more lives at risk.

• Make the World a Tax Haven. With global corporations growing ever more adept at using transfer pricing and overseas tax havens to avoid taxes here at home, Republicans would make the entire world outside the U.S. a corporate tax haven, ending any taxation on profits reported abroad, encouraging companies to move jobs and book profits abroad.

• Pad the Pentagon. With the U.S. spending almost as much on its military as the rest of the world combined, Republicans demand that we raise, not pare, Pentagon spending.

The Austerity Trap

Ryan’s Republican Budget has one other fundamental message — that America must turn its attention immediately to the “crushing burden of debt.” Ryan would cut spending by over $500 billion in the first two years compared to the president’s budget, while claiming to lower taxes by about $131 billion. That takes nearly a 2 percent of GDP boost out of an economy growing at about the same rate. Ryan brags that the Republican budget reduces deficits faster and lower than the president’s budget. (Although given that he won’t reveal how he pays for over $4 trillion in tax cuts and what programs would take the spending cuts, that is far from proven.)

Lost in the race for austerity is the reality that we desperately need jobs and growth. Although the economy has started to generate jobs, 25 million Americans are still in need of full time work. We have fewer jobs than we had a decade ago, and millions more people. This debate should be focused on jobs, not cuts.

Ryan and Republicans duck this by arguing that austerity will increase confidence, and “job creators” will get to work. But we have seen how austerity works in Europe, now teetering on the edge of recession. It not only costs jobs; it makes deficit reduction harder. Ryan’s budget assumes a rate of growth that his spending cuts and layoffs are likely to undermine.

The Budget for All

In stark contrast, today the Congressional Progressive Caucus releases its FY2013 “Budget for All.” (Not yet posted on web as this is written.) This will be offered as an alternative to the Ryan budget on the floor of the Congress and in the halls of public opinion. It, too, is a message document — designed to show that common sense priorities do add up.

The CPC budget reduces deficits faster than Ryan does over the first 10 years. But the CPC begins sensibly, by boosting the economy with jobs measures in the early years. It calls for direct hiring programs — a Student Jobs Corps and a School Improvement Corps among others. It would rebuild America with an infrastructure bank and bigger investment in roads, bridges and trains. It sustains investment in research and development, clean energy and manufacturing. And it repeals the austerity inflicted by the debt ceiling agreement.

The CPC assumption is that putting people back to work is the priority. And its budget shows this is not incompatible with deficit reduction.

As the economy recovers, the CPC would send the bill for deficit reduction to those who contributed to or benefited from the mess. It focuses on the “true drivers of our deficit — unsustainable tax policies, the wars overseas, and the causes and effects of the recent recession” — rather than going after programs for the poor and the elderly.

Hold Wall Street Responsible. The CPC would hold the banks accountable, imposing a “financial crisis responsibility fee” on the banks, raising $90 billion over 10 years and putting a brake on computer driven, nano-second financial speculation by imposing a financial transactions tax raising nearly $850 billion over 10 years.

Tax the Rich. Instead of lowering taxes on the rich, the CPC would raise them — repealing the top end Bush tax cuts, taxing income from wealth at the same rate as income from work, raising tax rates on millionaires. The CPC would even impose a small temporary surcharge on individual fortunes over $10 million.

The CPC embraces Obama’s minimum tax on overseas profits, curbs deductions for CEO stock options, and ends fossil fuel preferences. Perhaps its most controversial clause is its most sensible — putting a price on carbon emissions, while aggressively refunding costs to working and poor families.

Reform Health Care. On soaring health care costs, the CPC would seek to limit costs, not send them to the most vulnerable. It would embrace the reforms built into the health care bill, add a public option to compete with private insurers, and require bulk purchase negotiations with drug companies for lower prices on drugs.

Pare the Pentagon. The Pentagon budget would be modestly pared over 10 years. Where Ryan ducks on Social Security, the CPC would act, lifting the income cap on Social Security taxes to secure the program.

The Choice

In his budget, Ryan suggests, “Americans, not Washington, deserve to choose the path their nation takes.” These two budgets make that choice clear. The CPC would invest in jobs, preserve Social Security and Medicare, and call on the banks and the wealthy to pay a hefty share for getting us out of the hole we are in. Ryan’s Republican budget would impose austerity, lavish benefits on the rich, end Medicare as we know it and send the bill for the mess to working families, the poor and the elderly. The CPC would invest in rebuilding the country and reviving the American Dream. Ryan would invest in policing the world and protecting the tax havens of multinationals, and turn the Dream into a fantasy. The Ryan budget stands with the 1%. The CPC with the rest of us. You get to choose.

Posted in Class Warfare, Declining America, Politics | Leave a comment

Conservative Bullying Has Made America Into a Broken, Dysfunctional Family: But There Are Ways to Regain Our Well-Being

An abusive, out-of-control, rageaholic GOP broke our country by shattering our trust in democracy and in ourselves.

by Sara Robinson
March 20, 2012

A marriage counselor friend once told me that he almost always knows by the end of the very first session whether he’s being hired to guide a damaged couple back to health, or to help them work toward a divorce — even when the couple doesn’t know the answer to this question themselves.

It’s easy to see, he explained. The relationship’s future success or failure all hinges on one simple thing: How much goodwill and trust they have left. Even if they’ve hurt each other badly, the couples who make it are the ones that still retain a few shreds of faith in each other’s basic good intentions. She didn’t mean to hurt me. He’s not always a bastard. Deep down, she still loves me. Deep down, he really wants things to be better.

These couples are still seeing same future together, and still cling to the tattered memories of why they first fell in love. Just a few frayed threads of trust are all that’s needed — if they’ve got that, the odds are high that with time and work, they can re-weave the fabric of the marriage into something that’s once again strong and good.

On the other hand, the tell-tale sign of a zombie marriage — one that’s already dead, even if the parties involved haven’t yet confronted that fact — is that one or both partners have already given up and checked out. The trust is broken, the dream shattered, the damage just too much to ever repair. Things have been said and done that can’t ever be unsaid or undone. There’s so much bad history that there’s no way a mere human heart can ever forgive it all. It’s so far gone that pain and rage are all that remain — and the longer they stay together, the more brutal it’s likely to get.

If, as George Lakoff says, we tend to think of the nation as a family, then my friend’s approach for identifying salvageable marriages may apply just as well to salvaging our democracy. Because, like all marriages, all democratic governments are founded — first and foremost, above all else — on an essential bedrock of trust and shared vision. We need to trust that our fellow citizens are decent people with good intentions. If we don’t have even that much basic confidence in each other, there’s no way that we can work together to build a society that works. In fact, there’s not really even a reason to try.

Seen this way, “America” is the family name for the 310 million of us bonded together in a covenant that’s very much like the commitment that forms a family. We have come together to build our common wealth, create opportunities for each other that will secure our shared future, raise our children, care for our elderly, protect our assets, look after each other in sickness and in health, and wisely tend our national house and manage our gathered resources so we can hand the increase proudly off to the next generation.

And, like a family, this is a commitment that is entirely grounded in mutual trust — a bone-deep knowledge that we will keep faith and be there for each other; that we will look out for each others’ rights, property, and kids; that we will generously give the family our best whenever possible; and that we also rely on it to be there for us when we need help. For better or worse, richer or poorer, sickness or health, we promise to be there for each other. The true strength and wealth of the country begins with the strength of that commitment.

We cannot do this kind of mutual self-governance well — indeed, we cannot do it at all — unless we fundamentally trust each other’s good intentions and devotion to our shared enterprise. We may disagree on the means, but we share the same vision about what the ends should be. And just like in a marriage, when that trust is damaged, our future viability as a nation becomes a wide-open question.

This is a scary thought, because right now, America is riven by two very different visions of the future, held by two partners who obviously have radically different visions about where we should be going.

On one hand, you’ve got most of the country — center-right, center, center-left, and progressive — which sees us as a family in trouble, but which also believes that if we return to our bedrock agreements, focus on solving our shared problems and fall back on our basic goodwill and common sense, we should be able to sort things out. This is the two-thirds of America that poll after poll shows is ready to move forward on issues like economic transformation, inequality, corruption and corporate overreach, climate change and energy policy, and remaking our infrastructure. There’s a sense that, even though the challenges are big, we can solve them if we can come together, treat each other decently, reaffirm our commitment to the future, and force the democratic process to work again.

On the other hand, there’s another group that has entirely checked out on us, and turned ugly and abusive. The conservative minority is acting like Lakoff’s canonical Strict Father scorned: When the family rejects his leadership and his attempts at authoritarian contol, he sinks into a punitive, bullying rage, lashing out at the rest of us for what he’s come to believe is irredeemable broken faith because we won’t let him be the boss. By his behavior, he is telling us in no uncertain terms that he wants a scorched-earth divorce — the kind that leaves the rest of us broke, ruined, miserable, and utterly at his mercy. He has gone so far as to hire batteries of lawyers and lobbyists to accomplish this, and is taking a bully’s evident glee in his success.

What Democracy Abuse Looks Like

Here are a few broad-brush examples of how this screw-you attitude toward the idea of a balanced, strong, cooperative American family is playing out right now:

Most conservatives now openly reject the very idea of democracy. Whether it’s corporatists seeking to own every branch of government and privatize every public institution, security and intelligence types cracking down on our civil liberties, or Christian nationalists out to turn the country into a theocracy, conservatives are increasingly united by the conviction that Americans cannot be trusted to govern ourselves.

According to Dave Johnson, if you really want to understand just how hostile conservatives are to the very idea of democracy, and how debased their discourse has become on the subject, just take some of their favorite sayings and substitute the word “government” with either “democracy” or “we, the people.”

So: “government is the problem, not the solution” becomes “democracy is the problem” — or, perhaps worse: “we, the people are the problem.” Likewise: “smaller government” becomes “smaller democracy” and a smaller role for we, the people. The idea that “government destroys liberty” is clearly code for “democracy destroys liberty.” And so on. (It’s a great game you can play at home — fun for the whole family!)

Along these same lines — and despite the conspicuous way the Tea Party fetishizes the Constitution — it’s increasingly evident that the future they have in mind very explicitly does not include the Bill of Rights, a people’s Congress, the ability to petition our government, or the right to appeal to the courts for redress. I don’t have to enumerate the violations on this front, but I do encourage progressives to start seeing these assaults on our rights as clear evidence that our opponents fundamentally do not trust democracy, and are very deliberately out to destroy the constitutional rules that ours runs on.

They also don’t trust diversity in any form. They’re actively hostile to the idea of E pluribus unum — out of the many, one. Anybody who’s not white, straight, Christian, conservative, and male is inherently not-American. And the only acceptable function of government is to keep those Others — both here, and abroad — firmly in their place. The nightly news is full of fresh assaults on the rights of those who don’t fit their narrow definition of Real Americans.

They have embraced bullying as a political strategy and an acceptable cultural norm, which has in turn coarsened our civil discourse to the point of democratic breakdown. Rush Limbaugh and his throng of hate-talking imitators have given their listeners wide-open social permission to say ugly things in public that would most assuredly get them fired if they said them at work (check your company handbook, which no doubt has firm guidance on this point), and would probably precipitate an immediate divorce if they said them at home. The tone alone says it all: this is not the way you talk to people you intend to have any kind of future with.

Conservative lawyers and courts are actively carving out a First Amendment right to bully racial and religious minorities, immigrants, gays, and women who won’t stay in their place. Almost every family (including mine, unfortunately) and every workplace has a FOX-trained bully who makes it almost impossible to have simply collegial conversations. Democracy is literally not possible where such bullies exist, because the give-and-take and nuanced discussions that lead to good decision-making simply can’t happen. Instead, all the power goes to the person who’s willing and able to throw the biggest tantrum. That’s not democracy, in any sense of the word.

Our founders understood this all too well, which is why so many of our basic rules of government were explicitly designed to keep bullies in check.

They are systematically destroying Americans’ ability to trust almost every civil institution on the American landscape. The list goes on and on, but here’s a starter collection:

They are strategically undermining our schools by deliberately destroying community trust in them. Like a controlling father, they want the kids at home where they can keep a constant eye on them.

They are attempting to privatize Social Security, prisons, the military, and our infrastructure — all to prove their argument that we are no longer competent to do anything for ourselves through our government. Like an abusive spouse, they want us to feel too demoralized about ourselves to do anything effective to improve our lives, let alone find the courage and resolve to free ourselves from the abuse.

They are bastardizing science and bowdlerizing history — the two fields of academia most essential to developing foresight and understanding the implications of our future choices. And, in the process, they are keeping us from solving problems that threaten the continued existence of the entire human family.

They have demonized and harassed the mainstream media to the point where they can no longer be truly neutral about anything, for fear of exhibiting “liberal bias.”

They repealed the Fairness Doctrine, and took over local radio.

They are infringing on our religious freedoms in the name of extending their own.

They are defunding government (“democracy”) at all levels because they don’t believe that We, the People, can spend the money right. (Again: this is the logic of an abusively controlling spouse.)

They have destroyed our economy to benefit the top .10 percent, which effectively robs the rest of us of much of our cultural, economic and political power as well. And they have done this by telling us that “there is no such thing as society” — a claim that justifies bleeding off the vast and very real mountain of public wealth that this fictitious American society has carefully amassed over the course of its entire history.

All of these efforts, and many more, are rooted in one core fact: America’s conservatives ultimately do not trust other Americans to run their own lives as individuals — let alone govern ourselves as a group. And I’d argue that this mistrust runs so deep that no healing is possible for them. They have reached the point where they very clearly no longer want to be in this family together with us.

The seething, simmering rage and pain are running so deep now that the only thing that will satisfy them is total destruction of everything that puts the “us” in US. In their minds, breaking America as we’ve known it for the past 80 years is the only way they’ll ever be able to adequately punish us, and the only hope they have of someday seizing enough control of the shambles to finally salve their fury and fear.

To Stop A Bully: How to Restore Trust

This kind of dogged will to destroy is inherently pathological, whether it’s happening within a marriage or a nation. There’s no way it can ever be construed as healthy. My friend the marriage counselor would have looked at this situation — one spouse overwhelmed by irrational, abusive, controlling rage and constantly imputing unspeakable motives to the other — and written the marriage off.

But we can’t do that. We are still, for better or for worse, the biggest, richest family on the planet. On one hand, there’s no way for them to leave, because there’s nowhere for them to go, and no legal divorce is possible. On the other, letting them destroy the great house of America, built through generations and centuries to its present stature, is simply not an option.

So what do we do? If these people really don’t want to be in the marriage — if they are, in fact, trying to destroy it by any means possible — how on earth can we continue to function as a family?

We may have to do what families have always done with members who have lost their way, but cannot be abandoned. We need to close ranks around them, building alliances and strategies that will enable us to protect ourselves and each other from their depredations. We cannot change them, but it helps to realize that the faithful and decent members of this family still vastly outnumber those who wish us harm. If we work together closely, we can leverage our numbers and our sanity to arrange things in ways that will minimize the damage our rageaholic members can do.

The most important and critical thing we need to do is to restore trust; trust in each other, and in the idea of ourselves as a good and worthy family. We deserve so much better; and we are capable of so much more than our abusers tell us is possible.

We can refuse to buy into divide-and-conquer strategies, realizing that in this situation, the only distinction that matters at all is the one between those who are rooting for this country to succeed, and those who are out to destroy it. You are either on the side of democracy and the great American family, or you are not.

We can resolve to trust and respect each others’ perceptions and interpretations of events, even when they don’t entirely agree with our own. We can decide that we’re going to stay sane in the face of the craziness — and stand with anybody, regardless of their politics, who is also acting in good faith to stand against the bullies.

We can work to create a consensus vision of the next America we want to become, and form trusting relationships with others to make that happen.

We can refuse to reward bullying behavior with success. (Or, for that matter, with any more attention than it takes to get the bullies out of the room.)

We can stand up before each other and the world and say: “Those people do not speak for us, and their squalid, angry vision is not our vision. We are a better nation than that.”

And we can, simply, continue to come together and govern. Because the specter of citizens civilly and peacefully exercising power is, above everything else, the one thing they fear the most, the biggest threat to the radical anti-democracy agenda.

Posted in Class Warfare, Declining America, Politics | Leave a comment

Armed With Naïvete

Bill McKibben
Author of a dozen books, including ‘The End of Nature’ and ‘Deep Economy’

Time to Stop Being Cynical About Corporate Money in Politics and Start Being Angry

My resolution for 2012 is to be naïve — dangerously naïve.

I’m aware that the usual recipe for political effectiveness is just the opposite: to be cynical, calculating, an insider. But if you think, as I do, that we need deep change in this country, then cynicism is a sucker’s bet. Try as hard as you can, you’re never going to be as cynical as the corporations and the harem of politicians they pay for. It’s like trying to outchant a Buddhist monastery.

Here’s my case in point, one of a thousand stories people working for social change could tell: All last fall, most of the environmental movement, including 350.org, the group I helped found, waged a fight against the planned Keystone XL pipeline that would bring some of the dirtiest energy on the planet from Canada through the U.S. to the Gulf Coast. We waged our struggle against building it out in the open, presenting scientific argument, holding demonstrations, and attending hearings. We sent 1,253 people to jail in the largest civil disobedience action in a generation. Meanwhile, more than half a million Americans offered public comments against the pipeline, the most on any energy project in the nation’s history.

And what do you know? We won a small victory in November, when President Obama agreed that, before he could give the project a thumbs-up or -down, it needed another year of careful review. (The previous version of that review, as overseen by the State Department, had been little short of a crony capitalist farce.) Given that James Hansen, the government’s premier climate scientist, had said that tapping Canada’s tar sands for that pipeline would, in the end, essentially mean “game over for the climate,” that seemed an eminently reasonable course to follow, even if it was also eminently political.

A few weeks later, however, Congress decided it wanted to take up the question. In the process, the issue went from out in the open to behind closed doors in money-filled rooms. Within days, and after only a couple of hours of hearings that barely mentioned the key scientific questions or the dangers involved, the House of Representatives voted 234-194 to force a quicker review of the pipeline. Later, the House attached its demand to the must-pass payroll tax cut.

That was an obvious pre-election year attempt to put the president on the spot. Environmentalists are at least hopeful that the White House will now reject the permit. After all, its communications director said that the rider, by hurrying the decision, “virtually guarantees that the pipeline will not be approved.”

As important as the vote total in the House, however, was another number: within minutes of the vote, Oil Change International had calculated that the 234 Congressional representatives who voted aye had received $42 million in campaign contributions from the fossil-fuel industry; the 193 nays, $8 million.

Buying Congress

I know that cynics — call them realists, if you prefer — will be completely unsurprised by that. Which is precisely the problem.

We’ve reached the point where we’re unfazed by things that should shake us to the core. So, just for a moment, be naïve and consider what really happened in that vote: the people’s representatives who happen to have taken the bulk of the money from those energy companies promptly voted on behalf of their interests.

They weren’t weighing science or the national interest; they weren’t balancing present benefits against future costs. Instead of doing the work of legislators, that is, they were acting like employees. Forget the idea that they’re public servants; the truth is that, in every way that matters, they work for Exxon and its kin. They should, by rights, wear logos on their lapels like NASCAR drivers.

If you find this too harsh, think about how obligated you feel when someone gives you something. Did you get a Christmas present last month from someone you hadn’t remembered to buy one for? Are you going to send them an extra-special one next year?

And that’s for a pair of socks. Speaker of the House John Boehner, who insisted that the Keystone approval decision be speeded up, has gotten $1,111,080 from the fossil-fuel industry during his tenure. His Senate counterpart Mitch McConnell, who shepherded the bill through his chamber, has raked in $1,277,208 in the course of his tenure in Washington.

If someone had helped your career to the tune of a million dollars, wouldn’t you feel in their debt? I would. I get somewhat less than that from my employer, Middlebury College, and yet I bleed Panther blue. Don’t ask me to compare my school with, say, Dartmouth unless you want a biased answer, because that’s what you’ll get. Which is fine — I am an employee.

But you’d be a fool to let me referee the homecoming football game. In fact, in any other walk of life we wouldn’t think twice before concluding that paying off the referees is wrong. If the Patriots make the Super Bowl, everyone in America would be outraged to see owner Robert Kraft trot out to midfield before the game and hand a $1,000 bill to each of the linesmen and field judges.

If he did it secretly, the newspaper reporter who uncovered the scandal would win a Pulitzer. But a political reporter who bothered to point out Boehner’s and McConnell’s payoffs would be upbraided by her editor for simpleminded journalism. That’s how the game is played and we’ve all bought into it, even if only to sputter in hopeless outrage.

Far from showing any shame, the big players boast about it: the U.S. Chamber of Commerce, front outfit for a consortium of corporations, has bragged on its website about outspending everyone in Washington, which is easy to do when Chevron, Goldman Sachs, and News Corp are writing you seven-figure checks. This really matters. The Chamber of Commerce spent more money on the 2010 elections than the Republican and Democratic National Committees combined, and 94% of those dollars went to climate-change deniers. That helps explain why the House voted last year to say that global warming isn’t real.

It also explains why “our” representatives vote, year in and year out, for billions of dollars worth of subsidies for fossil-fuel companies. If there was ever an industry that didn’t need subsidies, it would be this one: they make more money each year than any enterprise in the history of money. Not only that, but we’ve known how to burn coal for 300 years and oil for 200.

Those subsidies are simply payoffs. Companies give small gifts to legislators, and in return get large ones back, and we’re the ones who are actually paying.

Whose Money? Whose Washington?

I don’t want to be hopelessly naïve. I want to be hopefully naïve. It would be relatively easy to change this: you could provide public financing for campaigns instead of letting corporations pay. It’s the equivalent of having the National Football League hire referees instead of asking the teams to provide them.

Public financing of campaigns would cost a little money, but endlessly less than paying for the presents these guys give their masters. And it would let you watch what was happening in Washington without feeling as disgusted. Even legislators, once they got the hang of it, might enjoy neither raising money nor having to pretend it doesn’t affect them.

To make this happen, however, we may have to change the Constitution, as we’ve done 27 times before. This time, we’d need to specify that corporations aren’t people, that money isn’t speech, and that it doesn’t abridge the First Amendment to tell people they can’t spend whatever they want getting elected. Winning a change like that would require hard political organizing, since big banks and big oil companies and big drug-makers will surely rally to protect their privilege.

Still, there’s a chance. The Occupy movement opened the door to this sort of change by reminding us all that the system is rigged, that its outcomes are unfair, that there’s reason to think people from across the political spectrum are tired of what we’ve got, and that getting angry and acting on that anger in the political arena is what being a citizen is all about.

It’s fertile ground for action. After all, Congress’s approval rating is now at 9%, which is another way of saying that everyone who’s not a lobbyist hates them and what they’re doing. The big boys are, of course, counting on us simmering down; they’re counting on us being cynical, on figuring there’s no hope or benefit in fighting city hall. But if we’re naïve enough to demand a country more like the one we were promised in high school civics class, then we have a shot.

A good time to take an initial stand comes later this month, when rallies outside every federal courthouse will mark the second anniversary of the Citizens United decision. That’s the one where the Supreme Court ruled that corporations had the right to spend whatever they wanted on campaigns.

To me, that decision was, in essence, corporate America saying, “We’re not going to bother pretending any more. This country belongs to us.”

We need to say, loud and clear: “Sorry. Time to give it back.”

Bill McKibben is Schumann Distinguished Scholar at Middlebury College, founder of the global climate campaign 350.org, a TomDispatch regular, and the author, most recently, of Eaarth: Making a Life on a Tough New Planet. To catch Timothy MacBain’s first Tomcast audio interview of the new year in which McKibben discusses how the rest of us can compete with a system in which money talks, click here, or download it to your iPod here.

To stay on top of important articles like these, sign up to receive the latest updates from TomDispatch.com here.

Posted in Class Warfare, Occupy Wall Street, People, Politics | Tagged , , , | Leave a comment

The Decline of Public Good

Robert Reich
Chancellor’s Professor of Public Policy, University of California at Berkeley; Author, ‘Aftershock’

Meryl Streep’s eery reincarnation of Margaret Thatcher in The Iron Lady brings to mind Thatcher’s most famous quip, “there is no such thing as ‘society.’” None of the dwindling herd of Republican candidates has quoted her yet but they might as well considering their unremitting bashing of everything public.

What defines a society is a set of mutual benefits and duties embodied most visibly in public institutions — public schools, public libraries, public transportation, public hospitals, public parks, public museums, public recreation, public universities, and so on.

Public institutions are supported by all taxpayers, and are available to all. If the tax system is progressive, those who better off (and who, presumably, have benefitted from many of these same public institutions) help pay for everyone else.

“Privatize” means pay-for-it-yourself. The practical consequence of this in an economy whose wealth and income are now more concentrated than any time in 90 years is to make high-quality public goods available to fewer and fewer.

Much of what’s called “public” is increasingly a private good paid for by users — ever-higher tolls on public highways and public bridges, higher tuitions at so-called public universities, higher admission fees at public parks and public museums.

Much of the rest of what’s considered “public” has become so shoddy that those who can afford to find private alternatives. As public schools deteriorate, the upper-middle class and wealthy send their kids to private ones. As public pools and playgrounds decay, they buy memberships in private tennis and swimming clubs. As public hospitals decline, they pay premium rates for private care.

Gated communities and office parks now come with their own manicured lawns and walkways, security guards, and backup power systems.

Why the decline of public institutions? The financial squeeze on government at all levels since 2008 explains only part of it. The slide really started more than three decades ago with so-called “tax revolts” by a middle class whose earnings had stopped advancing even though the economy continued to grow. Most families still wanted good public services and institutions but could no longer afford the tab.

From that time onward, almost all the gains from growth have gone to the top. But as the upper middle class and the rich began shifting to private institutions, they withdrew political support for public ones. In consequence, their marginal tax rates dropped — setting off a vicious cycle of diminishing revenues and deteriorating quality, spurring more flight from public institutions. Tax revenues from corporations also dropped as big companies went global — keeping their profits overseas and their tax bills to a minimum.

But that’s not the whole story. America no longer values public goods as we did before.

The great expansion of public institutions in America began in the early years of 20th century when progressive reformers championed the idea that we all benefit from public goods. Excellent schools, roads, parks, playgrounds, and transit systems would knit the new industrial society together, create better citizens, and generate widespread prosperity. Education, for example, was less a personal investment than a public good — improving the entire community and ultimately the nation.

In subsequent decades — through the Great Depression, World War II, and the Cold War — this logic was expanded upon. Strong public institutions were seen as bulwarks against, in turn, mass poverty, fascism, and then communism. The public good was palpable: We were very much a society bound together by mutual needs and common threats. (It was no coincidence that the greatest extensions of higher education after World War II were the GI Bill and the National Defense Education Act, and the largest public works project in history called the National Defense Interstate Highway Act.)

But in a post-Cold War America distended by global capital, distorted by concentrated income and wealth, undermined by unlimited campaign donations, and rocked by a wave of new immigrants easily cast by demagogues as “them,” the notion of the public good has faded. Not even Democrats any longer use the phrase “the public good.” Public goods are now, at best, “public investments.” Public institutions have morphed into “public-private partnerships;” or, for Republicans, simply “vouchers.”

Mitt Romney’s speaks derisively of what he terms the Democrats’ “entitlement” society in contrast to his “opportunity” society. At least he still envisions a society. But he hasn’t explained how ordinary Americans will be able to take advantage of good opportunities without good public schools, affordable higher education, good roads, and adequate health care.

His “entitlements” are mostly a mirage anyway. Medicare is the only entitlement growing faster than the GDP but that’s because the costs of health care are growing faster than the economy, and any attempt to turn Medicare into a voucher — without either raising the voucher in tandem with those costs or somehow taming them — will just reduce the elderly’s access to health care. Social Security, for its part, hasn’t contributed to the budget deficit; it’s had surpluses for years.

Other safety nets are in tatters. Unemployment insurance reaches just 40 percent of the jobless these days (largely because eligibility requires having had a steady full-time job for a number of years rather than, as with most people, a string of jobs or part-time work).

What could Mitt be talking about? Outside of defense, domestic discretionary spending is down sharply as a percent of the economy. Add in declines in state and local spending, and total public spending on education, infrastructure, and basic research has dropped from 12 percent of GDP in the 1970s to less than 3 percent by 2011.

Only in one respect is Romney right. America has created a whopping entitlement for the biggest Wall Street banks and their top executives — who, unlike most of the rest of us, are no longer allowed to fail. They can also borrow from the Fed at almost no cost, then lend the money out at 3 to 6 percent.

All told, Wall Street’s entitlement is the biggest offered by the federal government, even though it doesn’t show up in the budget. And it’s not even a public good. It’s just private gain.

We’re losing public goods available to all, supported by the tax payments of all and especially the better off. In its place we have private goods available to the very rich, supported by the rest of us.

Even Lady Thatcher would have been appalled.

Robert Reich is the author of Aftershock: The Next Economy and America’s Future, now in bookstores. This post originally appeared at RobertReich.org.

Posted in Class Warfare, Occupy Wall Street, Politics | Tagged , , , , | Leave a comment

American Space Exploration Leadership — Why and How

Buzz Aldrin
Apollo 11 Moonwalker

As we flip the calendar to 2012, we get the first blast of space news, and the resurgent relevance of human space exploration. China just announced plans to lead humanity in to the moon and beyond, the tail of their comet a strong defense mindset. The Chinese challenge comes at a time of a dangerous convergence, the international debt crisis and a contentious, highly consequential presidential election. In short, 2012 is an inflection year — the year we will and must decide whether the U.S. has the will and ability to lead the world in human space exploration. For me, I am betting we do — and here is how I suggest we begin.

In 1969, Neil Armstrong and I walked on the moon. Shortly thereafter, I participated in work on the “next generation of space transportation systems.” Without getting too technical, my strong tendency was to support a two-stage reusable launch system, with crew only in the second stage, allowing a first stage to return to Earth unmanned. This seemed both efficient and safer than the alternatives. I found myself on the minority side of the discussion, and relented. Over the past forty years, I have had multiple of occasions to regret that decision. We are now at another turning point — and this time, we must resolve to do it right.

In short, to make a real difference — from an exploration, science, national security and international leadership perspective — our Nation needs to commit to seeking a permanent presence on Mars. This idea has already been widely supported by leaders in both political parties — and seems central to the vision many Americans have for the country. While the goal uniquely protects U.S. leadership in space exploration, provides insurance for our national security, uniquely presses the envelope of science, and is certain to trigger a fusillade of economic opportunities here on Earth, there are big questions that loom — and now compel answers. Specifically, two questions leap off the page: When and how. If China’s ambitions help create new urgency, the how becomes central.

Space architectures capable of supporting a permanent human presence on Mars are extraordinarily complex, with many different interdependent systems. It is too much information for one short article. But for now, I want to focus on just one element: crew transportation systems.

From the outside looking in, we have two competing programs to provide Crew transportation to space — the NASA’s MPCV and a variety of possible private Commercial Crew Transport Systems. We only need one. As we crystallize the country’s level of commitment — what we can afford and how we make the move to action from theoretical agreement to go forward, there are big reasons to make the commercial sector an engine of action. The U.S. government would then become a purchaser of crew transportation from the U.S. commercial sector, the same way we are currently purchasing launches today from Russia. The MPCV should evolve to become a dedicated exploration system. Initially, it may work in concert with commercial crew systems.

But NASA is critical to success and always will be. Chris Kraft has pointed out that we already have a fairly robust set of launch vehicles being provided by the commercial sector. So, in this area, we do not need the government competing to develop another launch vehicle. One could — on another day — even discuss whether we need a 130 metric ton launch vehicle, but assuming we do, the U.S. launch industry is capable of building a vehicle capable of such lift reasonably soon. After all, only four years were needed for the U.S. space launch industry to develop EELV. Likewise, Falcon 9 was developed in a little more than seven years.

No, NASA’s role is more important that simple lift to orbit. NASA needs to focus on the things that are really important, and that we do not know how to do. The agency is a pioneering force, and that is where its competitive advantage lies. While the list is long of what we do not yet know how to do in the private sector, two things stand out as critical path technologies.

Interestingly, both needs are defined by one scientific fact: The vast majority of mass required to get to Mars is contained in propellants. Think about it. The physics of the effort dovetail with common sense. You need propellants to accelerate toward Mars, then to decelerate at Mars, again to re-accelerate from Mars to Earth, and finally to decelerate back at Earth. Accordingly, the mass of these required propellants, in short, drives our need for innovative launch vehicles.

Where do we go from that realization? First, developing in-space crew habitation systems capable of transporting people safely to and from Mars will be needed. Common sense says these vehicles need to be dedicated, single-purpose vehicles. Known requirements for reusable in-space habitation and transportation are quite different from the more basic requirements of delivering people from Earth to orbit.

Notably, the Apollo program provided clear testimony for this factual reality. Von Braun’s original concept of using a single, multipurpose spacecraft required two Saturn V launches for a single lunar mission. But the NASA’s revised plans properly allocated the functionality of the missions across separate vehicles (e.g. the Command Module, and the Lunar Module). The resulting efficiencies allowed these seminal Apollo missions to be completed in a single launch.

What do we really need right now to migrate from America’s commitment to human exploration and eventual permanent presence on Mars — with all the Earth side advantages in exploration, national security, science and economic activity — from vision to reality? The vision that comes first to mind is this: In addition to commercially provided Earth-to-orbit crew transportation, I envision two NASA developed, complementary interplanetary transportation systems, one to get people and a small amount of cargo to a second system, a “cycling mother ship,” that offers longer range and long-term habitability.

Explore this idea one level deeper with me. This two module exploration system would intercept a larger habitation system which would cycle between Earth and Mars, providing a means for getting crew and cargo to Mars on regular 26 month intervals. Regular, long-term cargo transportation would also support a permanent presence on the Red Planet or its highly attractive inner moon, Phobos.

One of the major problems with long-term deep space human flight is the requirement for radiation shielding. Shielding requires mass, and yet there are well-understood ways for accommodating the need for such mass. For instance, water contained in the outside wall of an inflatable habitat makes for excellent shielding. By keeping all of this mass on a single spaceship which cycles between Earth and Mars, requiring minimal thrust and no high-energy lift and descent from Earth, we strikingly reduce Earth-to-orbit launch costs.

Now, consider one other part of the “how” problem, what we call aero-capture. Put simply, aero-capture is a technique for using the atmosphere to decelerate to orbit, rather than burning precious fuel, be it Mars or a return to Earth. This is the extraterrestrial equivalent of free money. By using the atmosphere to decelerate, we again reduce the amount of propellant required to get to and from outer orbits. Like hunting and finding synergies in other areas of economic and national security, these systems offer hope, opportunity and a challenge that can be embraced by both the private and public sectors. While not simple, they offer real ways for converting our collective ambition — which in increasingly urgent — into a multi-generational reality, and commitment to long term U.S. leadership in human space exploration.

In a nutshell, the advantages — not least for the U.S. economy and permanent leadership in space — are almost incalculable if we begin from this first step. On the other hand, if we wander aimlessly, pick our way from one short-term goal to another, lose vision, ambition or commitment, we will find ourselves spending the next fifty years the way we have spent the last — without significant outward movement. We can no longer afford that kind of approach, or an attitude of leisurely investment in the future. Needed now is vision and commitment — with common sense. There, I have said it. I have spoken up as I did not when last the opportunity presented itself. Now, together, we should reaffirm the value of NASA, private sector engagement in space transportation, and America’s leadership in manned space exploration. The sooner we make these commitments, the sooner we all benefit from their extraordinary returns.

Follow Buzz Aldrin on Twitter: www.twitter.com/therealbuzz

Posted in People, Science, Space | Tagged , , | Leave a comment

Will Fossil Fuel Companies Face Liability for Climate Change?

by Christine Shearer

It is one thing to do your own research, but it is another to deliberately deceive people, contributing to widespread harm primarily to retain profits.

January 2, 2012 | In a recent article in National Journal, Americans for Prosperity (AFP) President Tim Phillips said there is no question that AFP and others like it have been instrumental in the rise of Republican candidates who question or deny climate science: “We’ve made great headway. What it means for candidates on the Republican side is, if you … buy into green energy or you play footsie on this issue, you do so at your political peril.”

AFP is a section 501(c)(4) organization, meaning it does not have to disclose its donors, but has been tied to significant funding from the Koch Family Foundations – founded by the billionaire Koch brothers of Koch Industries – as well as smaller donations from companies like ExxonMobil. Koch Industries and ExxonMobil are among the largest funders of studies questioning climate change science, often drawn upon by conservative politicians to legitimize their view that regulation of greenhouse gases (GHGs) is not needed because the science is still under debate.

These organizations and their supporters say they are just funding their own independent studies of climate change science. Yet these studies almost all go against observable scientific data to question global warming – so much so that one study funded in part by the Kochs that confirmed a rise in average world land temperature was regarded as an anomaly. Which raises the question: if these studies are largely designed not to shed light on climate change, but to create doubt and confusion to delay greenhouse gas regulations, why is it legal, and do those deliberately spreading misinformation face liability?

The first question, as far as I can tell, apparently boils down to: it’s legal because we have yet to make the deliberate manipulation of science illegal.

Yet while people and companies enjoy the First Amendment right to free speech, legal scholars have argued that right does not extend to influencing people under false pretenses. According to former tobacco industry lawyer Stephen Susman, when it comes to fossil fuel companies and supporters funding their own research on climate change, if “they knew the information they were spreading was false and being used to deliberately influence public opinion—that would override their First Amendment rights.”

This question may soon be playing out in the courts.

History of the science

Research on climate change goes back over a century. Spencer Weart’s The Discovery of Global Warming lays out the long trajectory: from realizing GHGs trap heat and help warm the planet, to identifying them, to tracking GHG emissions into the atmosphere and oceans from the burning of fossil fuels, to measuring the effects.

The research was developed enough that a 1965 report to the Johnson administration,Restoring the Quality of Our Environment, discussed the increase in global carbon dioxide emissions and the possible dire effects. In a 1969 memo, President Nixon’s Democratic adviser, Daniel Patrick Moynihan, wrote that it was “pretty clearly agreed” that carbon dioxide levels were rising fast and would increase the average temperature near the earth’s surface, and that such dangers justified government action.

Attempts to water down the implications of the science soon followed. Science historian Naomi Oreskes and others found that, in 1983, a committee of the U.S. National Academy of Sciences chaired by physicist William Nierenberg reframed the growing consensus around anthropogenic warming as a “nonproblem” that would have limited effects humans could adapt to, as with past changes in human history. Nierenberg was cofounder of the conservative George C. Marshall Institute, and – as documented in Oreskes and Eric Conways’s Merchants of Doubt (2010) – part of a group of government scientific advisers that went from Cold War warriors supporting nuclear weapons to staunch corporate defenders questioning the science on tobacco smoke, acid rain, the hole in the ozone layer, and eventually climate change science, among other issues.

Yet the science marched on. In 1988, NASA scientist James Hansen testified to the U.S. Congress that he believed with 99 percent confidence that substantial global warming was under way, and would rise significantly unless greenhouse gas emissions were reduced. That same year, the United Nations and the World Meteorological Organization created the Intergovernmental Panel on Climate Change (IPCC), a group of about 2,500 international climate scientists who evaluate the research on climate change (which often end up being conservative estimates of likely effects, arguably because of the need for agreement among government representatives).

In 1990, IPCC scientists completed their first assessment report for policymakers, stating they were certain human activities were increasing greenhouse gas emissions and warming, with the second report, in 1995, concluding there was a discernible human influence on climate.

The stage seemed set for an international treaty to limit greenhouse gas emissions.

History of the nonscience

That’s when fossil fuel companies and their supporters sprang in to fund their own research. In 1988 the coal industry founded the Western Fuels Association (WFA), headed by Fred Palmer, who later became vice president of Peabody Energy, the largest private coal company in the world. As outlined in Ross Gelbspan’s The Heat Is On (1998), the WFA actively sought to refute the growing consensus on climate change, stating in its report that “when [the climate change] controversy first erupted at the peak of summer in 1988, Western Fuels Association decided it was important to take a stand.… [S]cientists were found who are skeptical about the potential for climate change.”

A 1998 memo leaked from the National Environmental Trust to the New York Times detailed that a dozen people working for big oil companies, trade associations, and conservative think tanks had been meeting at the American Petroleum Institute’s Washington headquarters to propose a $5 million campaign to convince people that global warming science was riddled with controversy and uncertainty.

Industries like oil and large manufacturers created the lobbying group Global Climate Coalition (GCC) in 1989, with the stated purpose of “cast[ing] doubt on the theory of global warming.” A Freedom of Information Act request unearthed 2001 U.S. State Department documents to the GCC suggesting former President George W. Bush’s decision to pull out of UN international negotiations on climate change had been shaped in part by GCC and Exxon.

The George W. Bush Administration not only resisted GHG regulations, but actively edited government reports to question the science of climate change, one time drawing upon research funded in part by ExxonMobil. As documented by Greenpeace and others, ExxonMobil and Koch Industries went on to become major donors of such research, finding a platform in conservative think tanks and media.

The result? The U.S. perception of scientific consensus about climate change went down in line with the growth of corporate-funded research, particularly among Republicans, even as the science became more clear and the effects more apparent. While the awareness of a consensus is inching back up (although there is still much more confusion than there arguably should be over whether humans are a factor), the U.S. has yet to regulate greenhouse gases, even as the International Energy Agency warns that we may be five years away from being deadlocked into runaway warming.

Social scientists have noted internal barriers to action on climate change – that even people who acknowledge the science may not necessarily alter how they live to match that knowledge. In other words, accepting the consensus on climate change science might not have been enough for swift, immediate action.

Yet the evidence also seems clear that comprehensive understanding of the issue for the nation was muddled, and deliberately so: in 2009, an internal Global Climate Coalition document was leaked to the New York Times – a primer written in 1995 for coalition members admitting that the “scientific basis for the greenhouse effect and the potential impact of human emissions of greenhouse gases such as carbon dioxide on climate is well established and cannot be denied.”

Yet we are now at the stage where denying climate change, or at least the human factor, is apparently a prerequisite for being the Republican nominee for President, as Phillips has bragged. This stance would be completely unacceptable if not for the studies funded by fossil fuel industries and supporters. And it has been disastrous for creating U.S. policies to address climate change.

Liability?

In 2008, the small Inupiat nation and city of Kivalina, Alaska, filed a lawsuit against ExxonMobil and 23 other fossil fuel companies for federal public nuisance – the damage of their homeland, which will be uninhabitable within a few decades, as sea ice no longer sufficiently buffers the barrier reef island against erosion from fall storms. Their claim argues that Kivalina has an identifiable, discrete harm, traceable to greenhouse gas emissions, of which the defendant companies are among the world’s largest contributors. They seek damages: their relocation costs.

Kivalina also charged a smaller subset of companies with secondary claims of conspiracy and concert of action for creating a false debate about climate change science. In other words, these companies knew they were contributing to harm, but rather than change their practices, they instead funded a false debate about climate change science.

The lawsuit was dismissed one year later as a “political question” – the district court ruled that climate change was a matter for the executive and legislative branches, not the judicial branch, which is how three prior global warming public nuisance cases had been ruled. The judge also denied Kivalina’s legal standing to bring the suit. The secondary claims involving the misinformation campaigns of defendant companies went unaddressed.

Kivalina appealed the decision, with oral arguments heard in November of this year. If the claim is allowed to move forward, it could reach the discovery phase, which may unearth more documents similar to that leaked to the New York Times, suggesting deliberate intent to deceive.

Defendant companies argue that climate change is not a matter for the courts – the problem is too big, and we are all responsible. Yet we have not all embarked on multi-million dollar campaigns to fund our own research and prevent change. It is these secondary claims that could be the crux of establishing whether fossil fuel companies will eventually bear liability for harm from greenhouse gas emissions. As prior cases involving lead, asbestos, and tobacco lawsuits show, people seem to think it is one thing to do your own research, but it is another to deliberately deceive people, contributing to widespread harm primarily to retain profits.

Christine Shearer is a researcher for CoalSwarm, part of SourceWatch, and a postdoctoral scholar at the Center for Nanotechnology in Society at UC Santa Barbara. She is managing editor of Conducive, and author of the book, “Kivalina: A Climate Change Story” (Haymarket Books, 2011).

Posted in Global Warming, Politics, Science | Tagged , , , | Leave a comment