Archive | Class War

In Clover

New HCAN study:

The five largest U.S. health insurance companies sailed through the worst economic downturn since the Great Depression to set new industry profit records in 2009, a feat accomplished by leaving behind 2.7 million americans who had been in private health plans. For customers who kept their benefits, the insurers raised rates and cost-sharing,and cut the share of premiums spent on medical care. Executives and shareholders of the five biggest for-profit health insurers, UnitedHealthGroup inc., WellPoint inc., Aetna Inc., Humana Inc., and Cigna Corp., enjoyed combined profit of $12.2 billion in 2009, up 56 percent from the previous year. It was the best year ever for Big Insurance.

The 2009 financial reports from the nation’s five largest insurance companies reveal that:

* The firms made $12.2 billion, an increase of $4.4 billion, or 56 percent, from 2008.
o Four out of the five companies saw earnings increases, with CIGNA’s profits jumping 346 percent.
* The companies provided private insurance coverage to 2.7 million fewer people than the year before.
o Four out of the five companies insured fewer people through private coverage. UnitedHealth alone insured 1.7 million fewer people through employer-based or individual coverage.
o All but one of the five companies increased the number of people they covered through public insurance programs (Medicaid, CHIP and Medicare). UnitedHealth added 680,000 people in public plans.
* The proportion of premium dollars spent on health care expenses went down for three of the five firms, with higher proportions going to administrative expenses and profits.

Endorsement Deal

Simon Johnson at Baseline Scenario:

Being nice to the biggest banks will not save the midterm elections for the Democrats.  The banks’ campaign contributions will flow increasingly to the Republicans and against any Democrats (and there are precious few) who have fought for real reform.

The president’s only political chance is to take on the too big to fail banks directly and clearly.  He needs to explain where they came from (answer: the Reagan Revolution, gone wrong), how the problem became much worse during the last administration, and how – in credible detail – he will end their reign.

What we have now is not a free market.  It is rather one of the most complete (and awful) instances ever of savvy businessmen capturing a state and the minds of the people who run it.  Is this really what the president seeks to endorse?

The Big Lie of the Life of the Mind

Very interesting take on the class structure of graduate school, via AZSpot:

One reason that graduate school is for the already privileged is that it is structurally dependent on people who are neither privileged nor connected. Wealthy students are not trapped by the system; they can take what they want from it, not feel pressured, and walk away at any point with minimal consequences. They do not have to obsess about whether some professor really likes them. If they are determined to become academics, they can select universities on the basis of reputation rather than money. They can focus on research rather than scrambling for time-consuming teaching and research assistantships to help pay the bills. And, when they go on the market, they can hold out for the perfect position rather than accepting whatever is available.

But the system over which the privileged preside does not ultimately depend on them for the daily functioning of higher education (which is now, as we all know, drifting toward a part-time, no-benefit business). The ranks of new Ph.D.’s and adjuncts these days are mainly composed of people from below the upper-middle class: people who believe from infancy that more education equals more opportunity. They see the professions as a path to security and status.

Again and again, the people who wrote to me said things like “Nobody told me” and “Now what do I do?” “Everybody keeps saying my doctorate gives me all kinds of transferable skills, but I can’t get a second interview, even outside of academe.” “What’s wrong with me?”

The myth of the academic meritocracy powerfully affects students from families that believe in education, that may or may not have attained a few undergraduate degrees, but do not have a lot of experience with how access to the professions is controlled. Their daughter goes to graduate school, earns a doctorate in comparative literature from an Ivy League university, everyone is proud of her, and then they are shocked when she struggles for years to earn more than the minimum wage. (Meanwhile, her brother—who was never very good at school—makes a decent living fixing HVAC systems with a six-month certificate from a for-profit school near the Interstate.)

Unable even to consider that something might be wrong with higher education, mom and dad begin to think there is something wrong with their daughter, and she begins to internalize that feeling.

Everyone has told her that “there are always places for good people in academe.” She begins to obsess about the possibility of some kind of fatal personal shortcoming. She goes through multiple mock interviews, and takes business classes, learning to present herself for nonacademic positions. But again and again, she is passed over in favor of undergraduates who are no different from people she has taught for years. Maybe, she wonders, there’s something about me that makes me unfit for any kind of job.

This goes on for years: sleepless nights, anxiety, escalating and increasingly paralyzing self-doubt, and a host of stress-induced ailments. She has even removed the Ph.D. from her résumé, with some pain, but she lives in dread that interviewers will ask what she has been doing for the last 12 years. (All her old friends are well established by now, some with families, some with what seem to be high-powered careers. She lives in a tiny apartment and struggles to pay off her student loans.) What’s left now but entry-level clerical work with her immediate supervisor just three years out of high school?

She was the best student her adviser had ever seen (or so he said); it seemed like a dream when she was admitted to a distinguished doctoral program; she worked so hard for so long; she won almost every prize; she published several essays; she became fully identified with the academic life; even distancing herself from her less educated family. For all of those reasons, she continues as an adjunct who qualifies for food stamps, increasingly isolating herself to avoid feelings of being judged. Her students have no idea that she is a prisoner of the graduate-school poverty trap. The consolations of teaching are fewer than she ever imagined.

Such people sometimes write to me about their thoughts of suicide, and I think nothing separates me from them but luck.

Social Security ‘Reform’, etc.

Well, it seems I’m not the only one who’s worried. Jane:

Ben Smith says today that the left is “silent on Social Security reform” even as the administration considers it, and quotes Blue Dog Jim Cooper who says Obama is “in a honeymoon phase, and many liberals are afraid to express concerns.”

Atrios calls it trolling. Perhaps it is, but there have been signs that serious Social Security reform is in the works, and people who have been briefed on the administration’s plans indicate that things like raising the retirement age and cutting benefits are under consideration.

Consider — in December, Cooper said a report which showed “that the governments unfunded liabilities are roughly $56 trillion” was “shocking.” He called for a commission to address it, which Hoyer endorsed but Pelosi opposed. The White House agreed to it in January:

Obama said that he has made clear to his advisers that some of the difficult choices–particularly in regards to entitlement programs like Social Security and Medicare – should be made on his watch. “We’ve kicked this can down the road and now we are at the end of the road,” he said.

So who is going to be on this panel? Kent Conrad, Judd Gregg, the Blue Dogs and “a host of outside groups with ideas on the matter.” Said Paul Rosenberg:

So, Blue Dogs in. Progressives? Not so much. Surprised? Didn’t think so. The agenda here “difficult choices–particularly in regards to entitlement programs like Social Security and Medicare” is straight out of the fiscal slasher movie on CNN last weekend, IOUSA, which Digby blogged about earlier in the week, and which was thoroughly debunked by economist Dean Baker and his associates at the Center for Economic and Policy Research (CEPR), which he co-directs, when it first came out in theatrical release last fall.

Whatever plan the task force comes up with, Cooper does not want Congress to be able to amend it.

Cooper was a health care spokesman for Obama during the campaign. Mike Lux sounded the alarm at the time, noting that Cooper had been critical to killing health care reform in 1993/94 and was a solid spokesman for the insurance industry position. Digby has more of his history.

Now as Ben rightly notes, during the campaign the only time Obama discussed revamping Social Security was raising the cap on Social Security taxes. But that’s hardly what Jim Cooper and the Blue Dogs are looking for. Nor, does it seem, that folks inside the Obama team think that this will be sufficient. The framework they are evidently looking at is outlined in a 2005 Brookings Institute paper called the Diamond-Orszag Plan, co-written by…yes, Obama’s budget director, Peter Orszag.

You can find the plan here, but this should give you a hint:

Since Painful Choices Must Be Made, a Key Question Is, Which Ones?

The Social Security deficit can be eliminated only through different combinations of politically painful choices: tax increases and benefit reductions. Unfortunately, too many analysts and politicians have ignored this reality, responding to the painful alternatives by embracing “free lunch” approaches.

[]

Our plan makes the painful choices that are necessary—selecting a combination of benefit and revenue changes to restore long-term balance. In doing so, it focuses on three areas which contribute to the actuarial imbalance: improvements in life expectancy, increases in earnings inequality, and the burden of the legacy debt from Social Security’s early history.

[]

Workers who are 55 or older will experience no change in their benefits from those scheduled under current law. For younger workers with average earnings, our proposal involves a gradual reduction in benefits from those scheduled under current law. For example, the reduction in benefits for a 45-year old average earner is less than 1 percent; for a 35-year-old, less than 5 percent; and for a 25-year-old, less than 9 percent. Reductions are smaller for lower earners, and larger for higher ones.

Obama met with the Blue Dogs Tuesday night. Before the House vote on the stimulus bill, Rahm Emanuel had promised them that they would soon see “signs of Obama’s commitment to fiscal reform,”and according to one Blue Dog, “Tuesday night was a fulfillment of the commitment Emanuel made that day.”

If Blue Dogs like Cooper have been emboldened by the idea that the left will quietly accept Social Security reforms that include reductions in benefits because of Obama’s popularity, they have sorely deluded themselves. As Atrios notes, it would create “an epic 360 degree shitstorm.” If people on the left are being quiet, it’s not because they don’t care...it’s because they don’t think Obama will ever do it.

Site Meter