31 March 2009

HALT the HIKE! Its NOT too late to SPEAK OUT!

March 31, 2009.

Dear Fellow Americans,

It's NOT too late.

I'm sure you've heard that the Metropolitan Transit Authority (MTA) voted last week to raise fares by at least 25% on New York City subways, buses, Metro North and the Long Island Railroad.

They took this step because our state legislators in Albany failed to pass an alternative that would solve the MTA's budget crisis without these painful fare increases.
Luckily, there's still time to halt the hike. If Albany can get its act together before May 31 (when the higher fares go into effect), they can prevent this crushing blow to New Yorkers already struggling with the economic downturn.

The clock is ticking, and your voice can make the difference. Here's how you can help:

1. Go to www.HaltTheHike.org and tell your legislators to save transit riders and halt the hike!


2. Download our Halt the Hike poster. It's available at HaltTheHike.org. Print it out and post it at your workplace, your apartment building, your co-op message board -- anywhere others will see it and take action too.


3. Send us photos of creative (but legal) places you've put up the poster -- we'll post the best images on our site. Submit by replying to this email.
Again, there's still time to stop these fare increases, if enough New Yorkers pressure our state legislators to act. Visit www.HaltTheHike.org.


Sincerely,
Charles, Dan, & Bryan

Working Families Party

P.S. Albany's failure to act by May 31 will also mean elimination of the W and Z trains, 35 NYC bus lines, and serious cutbacks in service everywhere else. If your public transit service is bad enough already, take action at www.HaltTheHike.org today!


If you're able, Please consider helping Working Families fight for the little guy: We can't count on Wall Street. We rely on contributions from ordinary people like you to keep the WFP going. If you'd like to support our work, visit:

LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

Obama’s Ersatz Capitalism.

by: Joseph E. Stiglitz
Op-Ed Contributor
March 31, 2009.

THE Obama administration’s $500 billion or more proposal to deal with America’s ailing banks has been described by some in the financial markets as a win-win-win proposal. Actually, it is a win-win-lose proposal: the banks win, investors win — and taxpayers lose.

Treasury hopes to get us out of the mess by replicating the flawed system that the private sector used to bring the world crashing down, with a proposal marked by overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency.

Let’s take a moment to remember what caused this mess in the first place. Banks got themselves, and our economy, into trouble by overleveraging — that is, using relatively little capital of their own, they borrowed heavily to buy extremely risky real estate assets. In the process, they used overly complex instruments like collateralized debt obligations.

The prospect of high compensation gave managers incentives to be shortsighted and undertake excessive risk, rather than lend money prudently. Banks made all these mistakes without anyone knowing, partly because so much of what they were doing was “off balance sheet” financing.

In theory, the administration’s plan is based on letting the market determine the prices of the banks’ “toxic assets” — including outstanding house loans and securities based on those loans. The reality, though, is that the market will not be pricing the toxic assets themselves, but options on those assets.

The two have little to do with each other. The government plan in effect involves insuring almost all losses. Since the private investors are spared most losses, then they primarily “value” their potential gains. This is exactly the same as being given an option.

Consider an asset that has a 50-50 chance of being worth either zero or $200 in a year’s time. The average “value” of the asset is $100. Ignoring interest, this is what the asset would sell for in a competitive market. It is what the asset is “worth.” Under the plan by Treasury Secretary Timothy Geithner, the government would provide about 92 percent of the money to buy the asset but would stand to receive only 50 percent of any gains, and would absorb almost all of the losses. Some partnership!

Assume that one of the public-private partnerships the Treasury has promised to create is willing to pay $150 for the asset. That’s 50 percent more than its true value, and the bank is more than happy to sell. So the private partner puts up $12, and the government supplies the rest — $12 in “equity” plus $126 in the form of a guaranteed loan.

If, in a year’s time, it turns out that the true value of the asset is zero, the private partner loses the $12, and the government loses $138. If the true value is $200, the government and the private partner split the $74 that’s left over after paying back the $126 loan. In that rosy scenario, the private partner more than triples his $12 investment. But the taxpayer, having risked $138, gains a mere $37.

Even in an imperfect market, one shouldn’t confuse the value of an asset with the value of the upside option on that asset.

But Americans are likely to lose even more than these calculations suggest, because of an effect called adverse selection. The banks get to choose the loans and securities that they want to sell. They will want to sell the worst assets, and especially the assets that they think the market overestimates (and thus is willing to pay too much for).

But the market is likely to recognize this, which will drive down the price that it is willing to pay. Only the government’s picking up enough of the losses overcomes this “adverse selection” effect. With the government absorbing the losses, the market doesn’t care if the banks are “cheating” them by selling their lousiest assets, because the government bears the cost.

The main problem is not a lack of liquidity. If it were, then a far simpler program would work: just provide the funds without loan guarantees. The real issue is that the banks made bad loans in a bubble and were highly leveraged. They have lost their capital, and this capital has to be replaced.

Paying fair market values for the assets will not work. Only by overpaying for the assets will the banks be adequately recapitalized. But overpaying for the assets simply shifts the losses to the government. In other words, the Geithner plan works only if and when the taxpayer loses big time.

Some Americans are afraid that the government might temporarily “nationalize” the banks, but that option would be preferable to the Geithner plan. After all, the F.D.I.C. has taken control of failing banks before, and done it well. It has even nationalized large institutions like Continental Illinois (taken over in 1984, back in private hands a few years later), and Washington Mutual (seized last September, and immediately resold).

What the Obama administration is doing is far worse than nationalization: it is ersatz capitalism, the privatizing of gains and the socializing of losses. It is a “partnership” in which one partner robs the other. And such partnerships — with the private sector in control — have perverse incentives, worse even than the ones that got us into the mess.

So what is the appeal of a proposal like this? Perhaps it’s the kind of Rube Goldberg device that Wall Street loves — clever, complex and nontransparent, allowing huge transfers of wealth to the financial markets. It has allowed the administration to avoid going back to Congress to ask for the money needed to fix our banks, and it provided a way to avoid nationalization.

But we are already suffering from a crisis of confidence. When the high costs of the administration’s plan become apparent, confidence will be eroded further. At that point the task of recreating a vibrant financial sector, and resuscitating the economy, will be even harder.

Joseph E. Stiglitz, a professor of economics at Columbia who was chairman of the Council of Economic Advisers from 1995 to 1997, was awarded the Nobel prize in economics in 2001.


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

30 March 2009

Write Your Legislatures Urging them to Extend Unemployment Benefits. The Moneys Are in Place, Thanks to the Bailout Dollars.

March 30, 2009

Dear Friends,

Greetings from the National Employment Law Project, and our unemployment information action site, www.unemployedworkers.org!

We are urging you to take action to extend unemployment benefits. As many of you know, the federal government is providing up to 33 weeks of federal emergency unemployment compensation (EUC) benefits to workers in high unemployment benefits.


However, there are over 1 million workers who are reaching the end of these Tier II EUC benefits in these high unemployment states.
Fortunately, allies of jobless workers slipped an EXTENSION OF THE EXTENSION into Section 2005 of the American Recovery and Reinvestment Act (ARRA)-that gave states the option of providing 13-20 weeks of benefits on top of the EUC program.

The details of this extension have been largely ignored. You can learn more about all the extended benefits programs by visiting our website HERE.


The bottom line is that some high unemployment states have to pass STATE LEGISLATION to get jobless workers all they deserve out of this 3rd extension of benefits (which is known simply as EB, extended benefits).


The states where action must be taken are: **ALABAMA, ARIZONA, DC, FLORIDA, GEORGIA, INDIANA, ILLINOIS, KENTUCKY, MAINE, MASSACHUSETTS, MISSISSIPPI MISSOURI, NEW YORK, OHIO, PUERTO RICO, SOUTH CAROLINA AND TENNESSEE.** In most of these states, legislation is already proposed to make the necessary changes to pay the maximum EB benefits.

**NOW, WE NEED YOUR HELP TO BUILD PUBLIC PRESSURE TO GET THIS LEGISLATION PASSED.**


Please take a moment to contact your state legislator by visiting NELP's action center HERE

It's imperative that you act today, and share this link with all your friends:
http://www.nelp.org/page/speakout/EB324

Thanks again for your patience as we retool our website.

We look forward to being in touch.

Sincerely,
Andy, Christine, Debbie, Judy, Rick
and Maurice The National Employment Law Project


P.S. If you have question or comments please email unemployedworkers.org@gmail.com

Our Postal Address: 75 Maiden Lane Suite 601 New York, New York 10038 United States


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

27 March 2009

Paterson rolls back Rockefeller drug laws.

March 27, 2009, 11:39am

Gov. David Paterson and lawmakers agreed Friday to ease up on tough narcotic-related sentencing provisions that were introduced in 1973.

(AP) - New York Gov. David Paterson and legislative leaders have agreed to ease drug laws that were once among the harshest in the nation and led a movement more than 30 years ago toward mandatory prison terms.

The agreement rolls back some of the tougher sentencing provisions pushed through the Legislature in 1973 by then-Gov. Nelson Rockefeller, a Republican who said they were needed to fight a drug-related "reign of terror."

Critics have long claimed the laws were draconian and crowded prisons with people who would be better served with treatment.

Mr. Paterson said Friday that judges will now be able to use techniques like treatment and counseling that have proven more effective than prison for low-level offenders. At the same time, penalties will be toughened for drug kingpins.



LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.



The Economics of Snooping on Internet Traffic.

March 25, 2009, 2:30pm

Update | 2:07 p.m. Details of the Cox and Comcast approaches modified.

Kurt Dobbins, the chief technical officer of Arbor Networks, has what he sees as a very good reason to use a machine — which his company makes — that can see every word and every picture people send and receive over their Internet service provider: Internet service providers could offer a complex menu of price plans, as cellphone companies do. He predicts you will soon see many plans that impose usage caps in peak times, but unlimited use off peak.

That thought may well be red meat to the many people who think the Internet should always be unfettered by any limits.

Mr. Dobbins invited himself over for coffee recently, not to talk about Internet pricing exactly, but to defend the honor of this technology called deep packet inspection.

There are a lot of other things deep packet inspection can do that are perceived as rather creepy. It is great for spies and secret police, who want to know when people read or write about certain topics. It can identify people who send copyrighted files and block people from using certain programs, like BitTorrent. Advertisements can be shown based on what sites Internet users visit. And it can help Internet providers degrade the service of rival offerings, such as voice calling or video over the Internet.

Tim Berners-Lee, one of the creators of the World Wide Web, recently said in a speech to the British House of Lords that deep packet inspection is the equivalent of opening people’s mail.
The Free Press, an advocacy group, published a report on the subject last week, warning that the adoption of deep packet inspection “will open a Pandora’s box of unintended consequences that could spell disaster for the free market online.”

Mr. Dobbins said that he wished the technology had a different name. “Deep packet inspection conjures up all kinds of evil images,” he said, frustrated that what he helped invent 10 years ago has earned such a bad reputation.

Arbor isn’t in the Big Brother business, he insisted. Its technology doesn’t read the content of what people send and receive, he said; it just analyzes how much bandwidth they use and the type of information they are sending — e-mail, video, Web pages or whatever.

It is like looking at the stamp and addresses on the outside of mail, not opening the envelopes, he said.

It’s not quite so simple, however. Mr. Dobbins explained that Arbor’s machines don’t scan for copyrighted songs, for example. But they do identify packets being sent by peer-to-peer file trading programs, and they can send them to machines made by other companies meant to identify copyrighted content.

I’m not sure this is going to reassure Mr. Berners-Lee and other critics of deep packet inspection. Arbor, to continue the postal imagery, is like a person who sorts through the mail looking for suspicious packages, handing them to another person to open.

What about the business Arbor says it is in: helping Internet providers reduce costs and increase revenue by adjusting their pricing plans to the way each customer uses the Internet?

Mr. Dobbins said Internet providers in the United States should follow the lead of Plusnet, a British I.S.P. that uses Arbor equipment to offer various service plans. The cheapest plan costs 11.99 pounds ($17.67) per month. Use is capped at 10 gigabytes a month, except for unlimited use between midnight and 8 a.m. In addition, traffic is divided into seven categories, each with a different priority. At the top are fee-based services, like video on demand movies and voice over Internet phone calls. At the bottom are downloading of files from peer-to-peer networks and Usenet newsgroups.

The company offers two separate upgraded options, each at 19.99 pounds ($29.45) per month. One has unlimited bandwidth, but similar slowdowns for downloads. Another “pro” plan has a 15-gigabyte-per-month peak limit, but promises priority treatment for downloads and other sorts of traffic. That plan also will move traffic for online games to the head of the line, because a split second sometimes can make a difference in the outcome of a fast-twitch war game.

The point of all this is to shift as much of the heavy bandwidth use to off-peak times. Most of the costs of running an Internet provider are fixed; customers pay whether they are using the network or not. But I.S.P.’s do have to invest to expand the maximum capacity of their networks to accommodate peak usage.

How much of an expense all this extra downloading actually costs is a bit of a debate. Dave Burstein, the editor of DSL Prime, says it isn’t more than the equivalent of a dollar or two per user per month. That’s hardly enough, he says, for Internet providers in this country, which have very wide profit margins, to cry poor. (In Britain, the marginal costs are higher and competition has lowered margins, he said.) But that is not keeping Arbor from selling its products as a way to cut costs.

So far a few Internet providers in the United States, including Time Warner Cable, are just exploring bandwidth caps and price tiers. More common has been an effort to use techniques, including deep packet inspection, to manage the congestion at peak times. Comcast was slapped by the Federal Communications Commission for blocking some BitTorrent file sharing without proper disclosure.

Now Comcast is using a system that will slow down the connections of heavy users at peak times, regardless of what they are doing online. Cox Communications is using the sort of approach Arbor recommends, giving priority at peak times to some uses, like voice calling and streaming media, while relegating others, like file downloads, to the slow lane. Cox’s limits apply only when customers are uploading, not downloading, informatin.

On one level letting the urgent traffic go first makes a lot of sense. But Ben Scott, the policy director of the Free Press, said that Internet providers, like Cox, shouldn’t be allowed to differentiate between different uses of the Internet.

“Some customers will value what they see as low priority as high priority,” he said. I asked Mr. Scott what he thought about the approach of Plusnet, which lets consumers pay more if they want higher priority given to their game traffic and downloads. Surprisingly, he had no complaints.

“If you said to me, the consumer, ‘You can choose what applications to prioritize and which to deprioritize, and, oh, by the way, prices will change as a result of how you do this,’ I don’t have a problem with that,” he said.

If this sort of approach does in fact satisfy the critics, I think we are very likely to see Internet providers move to more multiple price tiers, using deep packet inspection to juggle different users and quotas. And in the process we may very well expand a technical infrastructure that has the potential to assist those that want to snoop on our electronic communications.



LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

Tell Congress to Stop Taking Wall Street Money.

March 26, 2009.

Dear Fellow Americans,

During the Great Depression, Congress passed laws designed to ensure that our economy would never collapse like that again. Regulations were enacted to keep banks and insurance companies separate, to establish regulatory bodies with real oversight, and more. Unfortunately, over time Congress succumbed to Wall Street and repealed those laws1 and sowed the seeds of the current crisis.

Tell Congress to stop taking Wall Street money.

Why did they do this? One answer is the need for ever increasing amounts of money to pay for expensive political campaigns. Some Democrats2 wanted to compete with Republicans over who can be more 'business friendly' by loosening the controls that kept our financial system stable.

The result? A Dow Jones index nearly half what it was a year ago. Trillions of dollars in bank bailouts, loan guarantees and stimulus packages. Unemployment is up, retirement funds have been decimated, and there's a tidal wave of foreclosures and bankruptcies. And we might not have hit bottom yet.

Why did this happen? Because Wall Street got enough political power to set aside the regulations that kept them in check. They used it to earn obscene compensation totally unrelated to the real economy of goods and services that people need. And now we're the ones paying the price.

We hope President Obama can make a difference - and soon. But we also need to make sure this never happens again. Our idea? Tell your Representatives and Senators to make the pledge: No more Wall Street money!This isn't all we need to do, but it's a good start.

http://action.workingfamiliesparty.org/t/3865/campaign.jsp?campaign_KEY=2646

You might have heard about our successful tour of the homes of AIG executives' homes and the AIG headquarters in Wilton, CT. See a great video about it here and read what other WFP supporters had to say to AIG. Are we standing on the verge of a new progressive era for New York and America? Make it happen by signing up to join us as a campaigner.

Sincerely,

Charles Lenchner
Director of Online Organizing

1Two great articles on this process: Thomas McCraw at The New Republic and Matt Taibbi at Rollingstone.
2Hillary Clinton leads the pack of New York politicians with $6.7 million from Wall Street, including $37,965 from AIG (in 2009). But Charles Rangel, Kirsten Gillibrand and Joseph Crowley have taken hundreds of thousands of dollars each as well. Learn more about the nexus of Wall Street and political donations here.

Help Working Families fight for the little guy: We can't count on Wall Street. We rely on contributions from ordinary people like you to keep the WFP going. If you'd like to support our work, visit:http://www.workingfamiliesparty.org/contribute.php



LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

26 March 2009

Bail Out People, NOT Bank(er)s! March on Wall Street.




Bail Out the People Not the Banks!

March on WALL STREET: April 3 & 4

In Memory of Martin Luther King, Jr:
Announcing a
National March On WALL STREET
April 3 while Wall St is Open;
continued April 4

Assemble at 1 pm Friday, April 3 at the Intersection of Wall & Broad Streets (The Stock Exchange)

EndorseBecome an OrganizerView Organizing Centers

March on Wall Street on the Anniversary on the day Martin Luther King gave his life fighting for social and economic justice.

Why? Because we must demand that the needs of the people come before the greed of the super rich. Millions are jobless and homeless, and millions more will be living on the streets if the government continues to waste trillions of dollars on saving wealthy bankers instead of saving people.

Dr. King would have been appalled and opposed to the terrible siege of Gaza as well as the continuing occupations of Iraq and Afghanistan.

And just as King knew that the struggle for civil rights at home had to also be part of the struggle against war abroad, he understood that no one, regardless of their race would be free until everyone had the right to a decent paying job or an income for those unable to work. Most importantly, King also understood that “Freedom is never voluntarily given by the oppressor; it must be demanded by the oppressed.” The time for suffering in silence has come to an end.

Nothing will change unless our desperation and anger is channeled into a mighty movement that unites and fights. It’s time to march on Wall St. Come to the march, and tell everyone you know to come with you.

National March on Wall St.—Jobs Not War!


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

Obama Ready for Questions From Web Visitors.

| Washington Bureau

cparsons@tribune.com

WASHINGTON - President Barack Obama will take questions in the East Room of the White House on Thursday, but the questions won't be coming from the Washington press corps. Instead, they're being suggested by visitors to the White House Web site, and then vetted by other visitors for their relevance and importance. The questions that rise to the top of the pile will be posed to the president at 11:30 a.m. EDT, in an order based on popularity, according to administration officials. So far, questions about Obama's NCAA bracket picks are sorting toward the bottom of the pile, along with queries about what kind of dog the first family will choose.

Instead, visitors are giving high ratings to questions about the economy — the stated purpose of the town hall meeting — and the president's plans to fix it. There are some tough questions on the president's plan to save the banking industry and on financial stability in general, said Macon Phillips, director of new media for the White House.

He says the president is soliciting the "wisdom of the crowd," a phrase Phillips thinks ought to have a good connotation. "Community input can be extremely valuable," said Phillips, the Alabama native who launched the White House Web site on inauguration day. a couple of months ago. "This isn't us putting our finger in the wind and asking, 'Which way should we go?' It's us getting a snapshot from people about what's on their mind. It's a way of tapping into the collective wisdom."

The town hall meeting will take place before a live audience of local participants, who will also ask questions. In addition, other questions will be posed by video, reminiscent of the groundbreaking YouTube debate that took place during the Democratic primaries.

Jared Bernstein, of Vice President
Joe Biden's staff, will moderate for the president, who will either stand by a podium or sit on a stool – the decision hadn't been made as of late Wednesday – to field questions. It's also not clear how far down the list of selected questions the president will get, and aides were careful to point out that "many" of the most popular queries would get an airing.

Just a day after the president skipped over all of the large newspapers when taking questions at a press conference, the virtual town hall does represent a unique Obama twist on the traditional form.
But Phillips says they're definitely not trying to screen out tough questions. "The president is at his best when he's answering difficult and challenging questions," said Phillips.


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.



24 March 2009

Paterson Orders 8,900 Layoffs of State Workers.

March 24, 2009.
photo: A. Golden, eyewash design, c. 2009.

Governor calls for first job cuts since the late 1990s as the state faces a $16 billion deficit.

(AP) - Gov. David Paterson on Tuesday ordered layoffs that could total more than 4 percent of state workers after unions refused concessions amid a staggering economic downturn that was projected to push the state's deficit to $16 billion in the next year.

Budget Director Laura Anglin told The Associated Press that the layoffs of nearly 9,000 employees would be the first since the late 1990s after unions refused to even provide counterproposals.

It was unclear if the eventual number of layoffs could be offset by attrition or early retirement incentives. Those are among the details that would be worked out in coming weeks.

The layoffs, which Ms. Anglin said could save the state $500 million over two years, could begin July 1. The state currently employs nearly 200,000 people.

Ms. Anglin said unions, including the state's largest public employee unions, have been informed and could still try to return to the table in the coming days before a budget is negotiated.

"We felt there was no other option at this point considering the size and magnitude of the deficit," Ms. Anglin said in an interview. "We asked everyone for a sacrifice and the unions were not willing to have that conversation."

There was no immediate comment from two of the state's biggest unions, the Civil Service Employees Association and Public Employees Federation.

Ms. Anglin said the unions refused proposals to delay 3 percent pay raises expected this year; defer a week's pay until retirement, a practice known as "lag pay"; or reduce state payments into retirees' health care.

The action is expected to save $161 million in the 2009-10 fiscal year.

It will take months to figure out which agencies and employees would be affected. The layoffs would apply only to workers in agencies under direct control of the governor's office such as highway crews, nurses, prison guards and forest rangers.

Employees not under Mr. Paterson's control include workers in the office of the attorney general, comptroller, state courts system or Legislature, Ms. Anglin said.

Mr. Paterson said no jobs are safe but he committed to protecting public safety.

State unemployment has risen during this recession to 7 percent in January, the latest number available, up from 4.7 percent a year before.

State jobs are most heavily concentrated in Albany and New York City, but they also represent a major part of local economies in many rural areas such as the Adirondacks and Southern Tier — particularly state prisons.


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

Not Insane.

TALK OF THE TOWN
by: Hendrik Hertzberg
March 23, 2009.

On “Hardball” the other night, David Frum was complaining about the Republican Party—a popular activity at MSNBC, a cable news network whose prime-time hosts are non-Republicans, including “Hardball” ’s Chris Matthews. Frum, however, is a non-non-Republican, and an overdetermined one: 1980 Reagan volunteer, Federalist Society activist, Wall Street Journal editorial-page editor, George W. Bush speechwriter (“axis of evil”), National Review contributing editor, American Enterprise Institute resident fellow. What conservatives are saying, he told Matthews,

is increasingly not only counterproductive economically but also politically. We look like we don’t care. We look like we’re indifferent. We don’t offer solutions. We’re talking about a spending freeze in the middle of a 1929-30-style meltdown!

On ABC’s “This Week,” David Brooks, the Times columnist, was even more aghast. Brooks—whose conservative credentials (William F. Buckley, Jr., protĆ©gĆ©, Wall Street Journal op-ed editor, Weekly Standard senior editor) aren’t too shabby, either—said wonderingly, “There are a lot of Republicans up on Capitol Hill right now who are calling for a spending freeze in the middle of a recession slash depression. That is insane.” Quite a lot of Republicans, actually, and they weren’t just talking about it: On March 6th, John Boehner, the House Republican leader, made a motion on the floor for just such a freeze. His charges voted for it, a hundred and fifty-two to nothing.

The theory that preventing the United States government from spending more money will halt the cascading crisis of demand that threatens the world with recession slash depression is indeed crazy. And many Republicans, even as they rail against “government spending,” at least understand that the government must cause more money to be spent, and that the fiscal deficit must rise in the process. They just want the government to do the job indirectly, by cutting taxes—especially taxes paid by the well-off, such as inheritance taxes, capital-gains taxes, corporate taxes, and high-bracket income taxes—in the hope that the money left untaxed will be spent. It is useless to point out to them that this approach was tried for eight years and found wanting, that in this economy the comfortable are less likely than the strapped to spend any extra cash that comes their way, that government spending often serves socially useful purposes, that “wasteful spending” is not a government monopoly (see corporate jets, golf-course “conferences,” premium vodkas), and that the only way to insure that money is spent is, precisely, to spend it.

And yet, lurking underneath the anti-spending, pro-tax-cutting cant is one idea that might truly have merit. Frum mentioned it on that “Hardball” broadcast, touching off this rather cryptic exchange:

FRUM: I’m for a big payroll-tax holiday that would go into effect immediately.

MATTHEWS:
I know about the payroll, uh—in other words, it gets money back in the hands of people who are working people, right?


FRUM:
Up to a hundred and twenty dollars per week per worker, starting last month.


MATTHEWS:
But it sounds like a liberal argument. The funny thing is, the liberals haven’t pushed it. And I don’t know why, because working people pay a very regressive tax when they go to work, right?

Right. The payroll tax—a.k.a. the Social Security tax, the Social Security and Medicare tax, or the Federal Insurance Contributions Act (FICA) tax— skims around fifteen per cent from the payroll of every business and the paycheck of every worker, from minimum-wage burger-flippers on up, with no deductions. No exemptions, either—except that everything above a hundred grand or so a year is untouched, which means that as salaries climb into the stratosphere the tax, as a percentage, shrinks to a speck far below. This is one reason that Warren Buffett’s secretary (as her boss has unproudly noted) pays Uncle Sam a higher share of her income than he does. In fact, three-quarters of American households pay more in payroll tax than in income tax.

Where income taxes are concerned, even Republicans seldom argue that taxing added income over a quarter million dollars at, say, thirty-six per cent rather than thirty-three per cent is wrong because the affluent need more stuff. They argue that making the rich richer enables them to create jobs for the non-rich. More jobs: that’s a big argument for capital-gains and inheritance-tax cuts, too. But the payroll tax is a direct tax on work and workers—on jobs per se. If the power to tax is the power to destroy, then the payroll tax is, well, insane.

Frum is not the only Republican on the case. “If you want a quick answer to the question what would I do,” Mitch McConnell, the Senate Republican leader, said recently, “I’d have a payroll-tax holiday for a year or two. That would put taxes in the hands of everybody who has a job, whether they pay income taxes or not.” Other Republican politicians and conservative publicists have made similar noises. They haven’t made it a rallying point, though; it would, after all, shape the over-all tax system in a progressive direction. Anyhow, their sincerity may be doubted: when President Obama proposed a much more modest cut along similar lines—a refundable payroll-tax credit of four hundred dollars—they denounced it as a welfare giveaway.

Liberals have been reticent, too. The payroll tax now provides a third of federal revenues. And, because it nominally funds Social Security and Medicare, some liberals regard its continuance as essential to the survival of those programs. That’s almost certainly wrong. Public pensions and medical care for the aged have become fixed, integral parts of American life. Their political support no longer depends on analogizing them to private insurance. Besides, the aging of the population, the collapse of defined-benefit private pensions, the volatility of 401(k)s, and pricey advances in medical technology mean that, no matter what efficiencies may be achieved, Social Security and Medicare will—and should—grow. Holding them hostage to ever-rising, job-killing payroll taxes is perverse.

If the economic crisis necessitates a second stimulus—and it probably will—then a payroll-tax holiday deserves a look. But it’s only half a good idea. A whole good idea would be to make a payroll-tax holiday the first step in an orderly transition to scrapping the payroll tax altogether and replacing the lost revenue with a package of levies on things that, unlike jobs, we want less rather than more of—things like pollution, carbon emissions, oil imports, inefficient use of energy and natural resources, and excessive consumption. The net tax burden on the economy would be unchanged, but the shift in relative price signals would nudge investment from resource-intensive enterprises toward labor-intensive ones. This wouldn’t be just a tax adjustment. It would be an environmental program, an anti-global-warming program, a youth-employment (and anti-crime) program, and an energy program.

Impossible? A politically heterogeneous little group with the unfortunately punctuated name of Get America Working! has been quietly pushing this combination for twenty years. In one form or another, without much fanfare, it has earned the backing of such diverse characters as Al Gore and T. Boone Pickens, the liberal economist James Galbraith and the conservative economist Irwin Stelzer, Republican heavies like C. Boyden Gray and Democratic heavies like Robert Reich. It’s ambitious, it jumbles ideological and partisan preconceptions, and it represents the kind of change that great crises open political space for. Does that sound like anyone you know?


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

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