If you have any doubt there’s a class war, read this

With Former White House Advisor Robert Gibbs @ President's Circle Conference

I wish I could say I was surprised, but after all, they did work for the president who has done more to cripple public education than even George Bush:

Teachers unions are girding for a tough fight to defend tenure laws against a coming blitz of lawsuits — and an all-out public relations campaign led by former aides to President Barack Obama.

The Incite Agency, founded by former White House press secretary Robert Gibbs and former Obama campaign spokesman Ben LaBolt, will lead a national public relations drive to support a series of lawsuits aimed at challenging tenure, seniority and other job protections that teachers unions have defended ferociously. LaBolt and another former Obama aide, Jon Jones — the first digital strategist of the 2008 campaign — will take the lead role in the public relations initiative.

The involvement of such high-profile Obama alumni highlights the sharp schism within the Democratic Party over education reform.

Teachers unions have long counted on Democrats as their most loyal allies. But in the past decade, more and more big-name Democrats have split with the unions to support charter schools, tenure reform and accountability measures that hold teachers responsible for raising students’ scores on standardized tests.

The national legal campaign is being organized by Campbell Brown, a former CNN anchor who told POLITICO that she has spent hundreds of thousands of dollars in recent months to get the effort off the ground. She intends to start with a lawsuit in New York, to be filed within the next few weeks, and follow up with similar cases around the country. Her plans for the New York lawsuit were first reported by The Wall Street Journal.

Brown’s campaign will be modeled on the recent Vergara v. California trial, which dealt a major blow to teachers unions. In that case, a judge earlier this month struck down California’s tenure system and other job protections embedded in state law, ruling that they deprived students of their constitutional right to a quality education because they shielded even the most incompetent teachers from dismissal. Teachers unions have said they will appeal.

The Vergara trial cost the plaintiffs’ team several million dollars, most of that bankrolled by Silicon Valley entrepreneur Dave Welch.

V.A. scandal is no big surprise

VA Hospital New Scotland Ave/Holland Ave  with Smith Building in background   c1955  Albany ny 1950s

What the fuck did Obama and the Congress think they were doing when they hacked the budget to shreds?

Seriously. As MLK said, a budget is a moral document. The Republicans decided (and the administration colluded) to cut the shit out of everything except the money that went to defense contractors. (Maybe if the VA was outsourced to private companies, they might have stayed their cuts.)

But are we really supposed to be surprised? Are we really not supposed to connect the dots between Obama’s need to validate Republican thinking and the shredding of needed services? These are the inevitable results of his fixation on cutting deals with the devil.

This is a disgrace

eat-the-rich

And Obama never should have gone along with GOP budget cuts. When we have this many people out of work, scraping to get by and we’ve shredded the safety net, it’s a disgrace to everyone involved:

The U.S. Treasury Department booked a $114 billion surplus in April, the largest for that month since 2008, according to the latest estimates from the Congressional Budget Office released Wednesday.

For the first seven months of this fiscal year, which began on Oct. 1, the CBO estimates the country has racked up a $301 billion deficit, which is $187 billion lower than it was for the same period last year.

Federal coffers saw a 7% increase in individual income taxes and payroll taxes, a 15% increase in corporate income taxes, and a 37% increase in money paid to Treasury by the Federal Reserve.

Last month, the CBO projected that the 2014 shortfall would decline to 2.8% of gross domestic product — or $492 billion. That is well below the 4.1% — or $680 billion — recorded for fiscal year 2013.

Nothing to brag about

Budget Battle

I was just talking to a friend about this, that Obama’s fixation on the deficit meant that Americans were deprived of social services at a time when they needed them the most. I don’t want to hear any crap about how “his hands were tied.” Bullshit. He validated this wingnut bullshit every time he opened his mouth, and I won’t ever forget it:

WASHINGTON–The U.S. government’s gap between spending and revenue will be narrower both this year and later in the decade compared with prior estimates, driven in part by reductions in near-term military spending and falling longer-run costs associated with the Affordable Care Act, the Congressional Budget Office said.

The CBO, a nonpartisan agency that advises Congress on budget policy, on Monday said the adjustments will lower its forecast for the 2014 deficit to $492 billion, or $23 billion less than it estimated two months ago. That’s equivalent to 2.8% of gross domestic product, marking the smallest deficit since 2007. Since 1980, the deficit has averaged roughly 3.2% of GDP.

CBO also reduced the government’s projected 10-year deficit by $286 billion, to $7.6 trillion, mainly because of lower subsidies related to the health-care law. Future Medicare spending was also revised lower.

The estimates come during a brief period of rapidly shrinking budget deficits, forcing both political parties to rethink their approaches to taxes and spending heading into the November midterm elections. The White House and Republican lawmakers have battled over the deficit for years, primarily through protracted debates over how much revenue to collect and how to structure government programs.

How Obama became a publicist instead of the president

Zelig Movie Posters

Just go read the rest. This is the best summation of Obama I’ve seen:

Like many days, March 3, 2014, saw the delivery of a stern opinion by President Obama. To judge by recent developments in Ukraine, he said, Russia wasputting itself “on the wrong side of history.” This might seem a surprising thing for an American president to say. The fate of Soviet Communism taught many people to be wary of invoking history as if it were one’s special friend or teammate. But Obama doubtless felt comfortable because he was quoting himself. “To those who cling to power through corruption and deceit and the silencing of dissent,” he said in his 2009 inaugural address, “know that you are on the wrong side of history, but that we will extend a hand if you are willing to unclench your fist.” In January 2009 and again in March 2014, Obama was speaking to the world as its uncrowned leader.

For some time now, observers — a surprisingly wide range of them — have been saying that Barack Obama seems more like a king than a president. Leave aside the fanatics who think he is a “tyrant” of unparalleled powers and malignant purpose. Notions of that sort come easily to those who look for them; they are predigested and can safely be dismissed. But the germ of a similar conclusion may be found in a perception shared by many others. Obama, it is said, takes himself to be something like a benevolent monarch — a king in a mixed constitutional system, where the duties of the crown are largely ceremonial. He sees himself, in short, as the holder of a dignified office to whom Americans and others may feel naturally attuned.

A large portion of his experience of the presidency should have discouraged that idea. Obama’s approval ratings for several months have been hovering just above 40 percent. But whatever people may actually think of him, the evidence suggests that this has indeed been his vision of the presidential office — or rather, his idea of his function as a holder of that office. It is a subtle and powerful fantasy, and it has evidently driven his demeanor and actions, as far as reality permitted, for most of his five years in office.

What could have given Obama such a strange perspective on how the American political system was meant to work? Let us not ignore one obvious and pertinent fact. He came to the race for president in 2007 with less practice in governing than any previous candidate. At Harvard Law School, Obama had been admired by his professors and liked by his fellow students with one reservation: in an institution notorious for displays of youthful pomposity, Obama stood out for the self-importance of his “interventions” in class. His singularity showed in a different light when he was elected editor of the Harvard Law Review — the firstlaw student ever to hold that position without having published an article in a law journal. He kept his editorial colleagues happy by insisting that the stance of the Review need not be marked by bias or partisanship. It did not have to be liberal or conservative, libertarian or statist. It could be “all of the above.”

This pattern — the ascent to become presider-in-chief over large projects without any encumbering record of commitments — followed Obama into a short and uneventful legal career, from which no remarkable brief has ever been cited. In an adjacent career as a professor of constitutional law, he was well liked again, though his views on the most important constitutional questions were never clear to his students. The same was true of his service as a four-term Illinois state senator, during which he cast a remarkable number of votes in the noncommittal category of “present” rather than “yea” or “nay.” Finally, the same pattern held during his service in the US Senate, where, from his first days on the floor, he was observed to be restless for a kind of distinction and power normally denied to a junior senator.

Extreme caution marked all of Obama’s early actions in public life. Rare departures from this progress-without-a-trail — such as his pledge to filibuster granting immunity to the giants of the telecommunications industry in order to expose them to possible prosecution for warrantless surveillance — appear in retrospect wholly tactical. The law journal editor without a published article, the lawyer without a well-known case to his credit, the law professor whose learning was agreeably presented without a distinctive sense of his position on the large issues, the state senator with a minimal record of yes or no votes and the US senator who between 2005 and 2008 refrained from committing himself as the author of a single piece of significant legislation: this was the candidate who became president in January 2009.

Back on the table

Social Security Building, by Luís Amoroso Lopes

I knew he wouldn’t give up, but I wish I didn’t have to read about this stuff. It’s really depressing:

Even though President Barack Obama’s formal budget proposal Tuesday omitted cuts to Social Security, the White House strongly suggested that a controversial policy to cut the program “remains on the table” if Republicans are willing to compromise.

“In last year’s Budget, the President included a compromise proposal intended as a show of good faith to spark additional negotiations with Congressional Republicans about the nation’s long-term deficits and debt and to encourage all parties to come together to remove the economically-damaging sequestration cuts,” the White House said in a fact sheet that accompanied its budget release. “Although that compromise proposal remains on the table, given Congressional Republicans’ unwillingness to negotiate a balanced long-term deficit reduction deal, the President’s 2015 Budget returns to a more traditional Budget presentation that is focused on achieving the President’s vision for the best path to create growth and opportunity for all Americans, and the investments needed to meet that vision.”

The “compromise proposal” is a thinly veiled reference to a policy known as Chained CPI, which slows the rate of inflation for Social Security benefits. The White House included the proposal in its budget released in 2013 as an olive branch to Republicans. Obama made clear he wouldn’t support it without new tax revenues in the mix, which the GOP refused to accept. Liberal advocates had also mobilized against the proposal. But senior administration officials made clear that while Chained CPI is not a policy that the president ideally wants, he’s still willing to support it if Republicans reciprocate with tax revenues.

Thanks to Attorney Karin Riley Porter.

Federal pension grab in new budget

humansacrifice

Leave it to David Dayen to dig out the nasty details of the Ryan-Murray budget deal and how federal workers will be sacrificed to the deficit gods:

2013 has not been a pleasant year if you work for the federal government. You’ve been subject to pay freezes, furloughs and shutdowns. One of you got yelled at by a Tea Party Republican at the World War II memorial. And if Congress passes the budget deal announced Tuesday night by Rep. Paul Ryan and Sen. Patty Murray – a big if – you will get a final Christmas present: You’ll have to pay more into your pension, an effective wage cut that just adds to the $114 billion, with a “B,” federal employees have already given back to the government in the name of deficit reduction.

The deal between House and Senate negotiators Ryan and Murray would reverse part of sequestration for 2014 and 2015, itself a major source of pain for federal workers. But negotiators want to pay for that relief in future years, with the overall package cutting the deficit by an additional $23 billion. And one of the major “pay-fors” is an increase in federal employee pension contributions. President Obama’s 2014 budget included such a proposal, which would have raised the employee contribution in three stages, from 0.8 percent of salary to 2 percent. Congress had already made this shift for new hires; the Obama proposal would affect all workers hired before 2012.

That proposed increased contribution translated to a 1.2 percent pay cut, and a total of around $20 billion in givebacks over 10 years. Negotiators were pressured by the powerful Maryland Democratic delegation, including Minority Leader Steny Hoyer, House Budget Committee ranking member Chris Van Hollen and Senate Appropriations Committee chairwoman Barbara Mikulski, into softening the blow on federal employees, many of whom live in their districts. According to Sen. Murray, the increase in contributions now equals about $6 billion over 10 years. But negotiators traded some of the cuts to federal employee pensions with different cuts to military pensions, also totaling $6 billion. So whatever the occupation, people who work for the government will bear the brunt of the pain.

Read it and weep. Once again, the deficit madness gets pushed to a different segment of the population so the rich may rest in luxury.

McClatchy: Chained CPI on the table in budget talks

Fortunately for us, I guess, the president’s low popularity ratings may make politicians more reluctant to take on senior citizens and vets over the chained CPI — but they’re sure as hell going to try:

WASHINGTON — With congressional budget negotiations moving behind closed doors, one item apparently on the table is changing the way cost-of-living adjustments are calculated for seniors, veterans and other recipients of government benefits.

The consumer price index, or CPI, is the government’s main gauge of inflation and is used to determine cost-of-living adjustments, often shorthanded as COLAs. It’s a formula used for more than four decades.

But President Barack Obama earlier this year proposed a less generous formula called a “chained” consumer price index, in hopes of saving the government $230 billion over 10 years.

In April, Obama’s proposal was viewed as an olive branch to Republicans that was largely rejected. With budget bills passed by the House of Representatives and the Senate now in a conference committee to narrow differences and a mid-January deadline approaching, the issue is back on the table.

The chairman of the congressional talks, House Budget Committee Chairman Paul Ryan, R-Wis., identified the issue as an area ripe for compromise.

“Compromise” being politician-speak for “selling out,” of course.
Continue reading “McClatchy: Chained CPI on the table in budget talks”

New poll shows little support for cuts

Instead, voters want higher taxes on the rich. Imagine that:

The poll reveals that the public has little desire for an all-cuts approach to deficit reduction, and that by a 17-point margin (56% to 39%) it wants the next budget agreement to include new tax revenues from the wealthy and corporations, in addition to spending cuts. Independents favor a balanced approach by a 19-point margin and moderates support it by a 42-point margin.

The poll also shows that by a 40-point margin (68% to 28%) the public wants Congress to focus on both creating jobs and reducing the deficit, not to focus only on deficit reduction.

When it comes to what to do about the new $110 billion in automatic spending cuts, known as the sequester, which are set to kick in next January, the public by a two-to-one margin (53% to 27%) wants to see at least half of the cuts replaced with revenue from the wealthy and corporations.

And strikingly, voters overall support a proposal to cancel the sequester spending cuts entirely and replace them with new tax revenue from the wealthy and corporations by 16 points (50% to 34%).

“The poll reveals a public that wants any new budget deal to include significant new revenue from closing tax loopholes that benefit the rich and corporations,” said Geoff Garin, President of Hart Research Associates. “They do not just want a debate about cutting spending. The party that is on the side of a balanced approach will hit the sweet spot with the public.”

While there has been much talk in Congress about using any revenue generated from closing tax loopholes to reduce income tax rates, the poll shows that the public has almost no interest in this approach. Instead, by a margin of 82% to 9%, the public says revenue generated from limiting tax deductions for the wealthy or closing corporate tax loopholes should be used for public investments and deficit reduction.

The mutilated economy

Krugman, writing from the IMF research conference:

It’s pretty clear, however, that the blockbuster paper of the conference will be one that focuses on the truly ugly: the evidence that by tolerating high unemployment we have inflicted huge damage on our long-run prospects.

How so? According to the paper (with the unassuming title “Aggregate Supply in the United States: Recent Developments and Implications for the Conduct of Monetary Policy”), our seemingly endless slump has done long-term damage through multiple channels. The long-term unemployed eventually come to be seen as unemployable; business investment lags thanks to weak sales; new businesses don’t get started; and existing businesses skimp on research and development.

What’s more, the authors — one of whom is the Federal Reserve Board’s director of research and statistics, so we’re not talking about obscure academics — put a number to these effects, and it’s terrifying. They suggest that economic weakness has already reduced America’s economic potential by around 7 percent, which means that it makes us poorer to the tune of more than $1 trillion a year. And we’re not talking about just one year’s losses, we’re talking about long-term damage: $1 trillion a year for multiple years.
Continue reading “The mutilated economy”