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Monthly Archives: July 2011

The Real Victims of Austerity

06 Wednesday Jul 2011

Posted by Craig in Politics, Unemployment

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budget, Florida, Medicare fraud, Rick Scott, state employees, unemployment

Those who can least afford it:

“Millions of Floridians head back to work Tuesday after a restful three-day Fourth of July weekend. But Toni Gugliotta won’t be among them. She’ll be applying for $275 a week in unemployment benefits instead. The Pinellas County woman is among 1,300 state employees put out of work by the new budget approved by the Legislature and signed into law by Gov. Rick Scott on May 26.

Scott kept his promise to reduce the size of the state government bureaucracy. But he did so at the expense of real people with mortgages, healthcare bills, college tuition payments and credit card payments. Many of them earned less than $30,000 a year after years of state employment.

To them, the Scott mantra “Let’s get to work” rings hollow. They now join the hordes of Floridians looking for work in a state with an unemployment rate that, while declining, remains in double digits at 10.6 percent.

The state agencies that took the biggest hits are the Department of Juvenile Justice and the Department of Children and Families, which together account for most of the layoffs.”

Nice job, Florida. Elect another Medicare fraud artist as governor.

Army’s $2.7 Billion Computing System Doesn’t Work

06 Wednesday Jul 2011

Posted by Craig in Afghanistan, budget, Iraq, Pentagon

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$2.7 billion, Army, computing system, DCGS-A, Department of Defense, Obama, wasteful programs

By all means, let’s keep increasing the Defense budget, especially when it’s spent so wisely and effectively:

“The Army’s $2.7 billion computing system designed to share real-time intelligence with troops fighting in Afghanistan and Iraq has hurt, rather than helped, efforts to fight insurgents because it doesn’t work properly, several analysts who have used the system say.

The analysts’ comments mirror concerns raised by the top military intelligence officer in Afghanistan and members of Congress over the past two years in an unsuccessful bid to get the Army to consider alternatives to its portion of the military’s Distributed Common Ground System, according to documents obtained by POLITICO.

…[A]nalysts say DCGS-A was unable to perform simple analytical tasks. The system’s search tool made finding the reports difficult, and the software used to map the information was not compatible with the search software.

“You couldn’t share the data,” said one former Army intelligence officer who worked in Afghanistan and Iraq.

There were also problems with the hardware, with the system being prone to crashes and frequently going off-line, he and another former Army intelligence officer now working as a contractor in Afghanistan said.

“The laptops are turned on, but it doesn’t work,” the second former officer said. “There’s a lot of bugs in the workflow.”

What happened to this?

“President Barack Obama asked Congress to approve a record $708 billion in defense spending for fiscal 2011, but vowed to continue his drive to eliminate unnecessary, wasteful weapons programs.”

…”Even though the Department of Defense is exempt from the budget freeze, it’s not exempt from budget common sense,” Obama told reporters at the White House.”

The Deficit Reduction Dog and Pony Show, Cont’d

05 Tuesday Jul 2011

Posted by Craig in Deficit, economy, Obama, Politics, Taxes

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Bush tax cuts, corporate jets, deficit, dog and pony show, hedge fund managers, president, press conference

Further proof that the deficit reduction talk in DC is just a dog and pony show:

“In a Wednesday news conference, the president especially pounded a depreciation provision for corporate jets, mentioning it six times.

“I think it’s only fair to ask an oil company or a corporate jet owner that has done so well to give up that tax break that no other business enjoys,” Obama said. “I don’t think that’s real radical. I think the majority of Americans agree with that.”

But as it turns out, ending the jet tax break would only save around $3 billion over a decade, while rolling back tax expenditures for oil-and-gas would bring in roughly $21 billion and a proposal aimed at hedge fund managers would collect some $15 billion over that same time span.

According to estimates from last year, ending the Bush tax cuts for income over $250,000 for couples would have brought an extra $700 billion into the Treasury.”

If they were serous about reducing the deficit they would, as Willie Sutton once said, go where the money is. But where the money is is also where the large campaign contributions is, so that ends that.

R.I.P. Social Security

05 Tuesday Jul 2011

Posted by Craig in Congress, Democrats, Obama, Social Security

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Clyburn, Doggett, extension, FDR, holiday, Larson, Obama, payroll tax, Social Security

FDR didn’t foresee what would become of his party:

“We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program.'”

Which is what’s happening now. Social Security is being de-funded:

“Despite warnings it will undermine Social Security, House Democratic leaders are lining up behind a White House proposal to extend a payroll-tax cut beyond this year.

Reps. James Clyburn (D-S.C.) and John Larson (D-Conn.) both announced Friday that they’ll throw their weight behind the extended payroll-tax holiday, which President Obama and some leading Senate Democrats are prescribing as an economic stimulant.

[…]

A number of liberal Democrats had fought the initial tax cut, noting that the payroll tax is the sole funding stream for Social Security, which is already paying out more than it’s taking in. Behind Rep. Lloyd Doggett (D-Texas), the lawmakers are now continuing that campaign in the face of a proposed extension.

Earlier this month, Doggett, Ted Deutch (Fla.) and Mark Critz (Pa.) urged their Democratic colleagues to oppose any additional payroll-tax breaks. The lawmakers warned that such measures threaten Social Security’s ability to pay future benefits and defy the initial design of the program.”

But there’s no sense in just eliminating part of the funding mechanism for Social Security. If you’re gonna do it, might as well do it right:

“The existing tax holiday applies only to workers, but Obama has also floated the idea of extending it to employers as well.”

“Grand Delusion” in Afghanistan

04 Monday Jul 2011

Posted by Craig in Afghanistan

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Afghanistan, grand delusion, Inter-Continental Hotel, Kabul, Obama, Pakistan, phillyburbs.com, receding, Taliban, troop drawdown, war

From phillyBurbs.com:

“President Obama has announced the long-awaited drawdown of U.S. troops from Afghanistan will begin next month. The president told a national TV audience last week that 10,000 troops will be brought home by the end of the year, and that by next summer, 33,000 personnel will have been withdrawn.

Obama told the nation: “The tide of war is receding.”

Apparently, Afghan insurgents haven’t gotten the message.

No less than the luxury Inter-Continental Hotel in Kabul, the capital of Afghanistan, came under siege by militants this week, and by the time the siege ended a day later, 20 people were dead. Among the slain were nine suicide attackers and 11 civilians.

This latest slaughter didn’t take place in some rural area of the country where security has never been demonstrated. These killings occurred in the capital city, supposedly a safe haven. The truth is, there’s no such thing as a safe haven in this landlocked piece of treacherous real estate, even after nearly 10 years of U.S. involvement.

It is here that the Afghan army and police are expected to gradually assume responsibility for securing people and property as the U.S. reduces its military presence over the next three years.

That’s a grand delusion.

This was hardly what the United States bargained for when this adventure began a decade ago. The war was launched in response to the attacks of Sept. 11. The objectives then were to get Osama bin Laden, destroy his al-Qaida terrorist network and replace the hated Taliban with a democratic form of government. Bin Laden just recently was neutralized … in neighboring Pakistan. Al-Qaida apparently has shifted its base of operations elsewhere, probably Yemen. The Taliban, meanwhile, remain a formidable force in a country that historically has defied stable, central government. Great Britain and the former Soviet Union learned only too well the folly of military involvement here. It’s curious how the United States government ever concluded that it could effect a different outcome.

We believe withdrawal of U.S. forces from Afghanistan is the correct strategy going forward. It should be accelerated beyond what the president has outlined, because even after the withdrawals over the next year, some 70,000 U.S. troops will remain. The bleeding must be stopped and quickly, because it is bleeding without a purpose. Nothing short of a miracle — not more casualties, not more billions — will produce a lasting, positive outcome in Afghanistan.

The evidence suggests no other conclusion.”

Amen.

Helmet Law Protester Makes a Point

04 Monday Jul 2011

Posted by Craig in Uncategorized

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died, helmet laws, New York, protest ride

But probably not the one he intended to make:

“Police say a motorcyclist participating in a protest ride against helmet laws in upstate New York died after he flipped over the bike’s handlebars and hit his head on the pavement. The accident happened Saturday afternoon in the town of Onondaga, in central New York near Syracuse.

State troopers tell The Post-Standard of Syracuse that 55-year-old Philip A. Contos of Parish, N.Y., was driving a 1983 Harley Davidson with a group of bikers who were protesting helmet laws by not wearing helmets.

Troopers say Contos hit his brakes and the motorcycle fishtailed. The bike spun out of control, and Contos toppled over the handlebars. He was pronounced dead at a hospital.

Troopers say Contos would have likely survived if he had been wearing a helmet.”

I’m not in favor of mandatory helmet laws, but I’m even less in favor of stupid. And riding a motorcycle without a helmet is just plain stupid. Law or no law.

It’s the Demand, Stupid

04 Monday Jul 2011

Posted by Craig in Clinton, economy, Financial Crisis, too big to fail

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Aspen Ideas Festival, Bill Clinton, Brooksley Born, Commodity Futures Modernization Act, consumer demand, corporate profits, corporate tax rates, derivatives, Glass-Steagall, Paul Krugman

Bill Clinton blathers:

“President Bill Clinton says the nation’s corporate tax rate is “uncompetitive,” and called for a lower rate as part of a “mega-deal” to raise the debt ceiling.

“When I was president, we raised the corporate income-tax rates on corporations that made over $10 million [a year],” the former president told the Aspen Ideas Festival on Saturday evening.

“It made sense when I did it. It doesn’t make sense anymore – we’ve got an uncompetitive rate. We tax at 35 percent of income, although we only take about 23 percent. So, we SHOULD cut the rate to 25 percent, or whatever’s competitive, and eliminate a lot of the deductions so that we still get a FAIR amount, and there’s not so much variance in what the corporations pay.”

Paul Krugman responds:

“Over the last two years profits have soared while employment has remained disastrously high. Why should anyone believe that handing even more money to corporations, no strings attached, would lead to faster job creation?

[…]

[T]he evidence strongly says that the real reason businesses are sitting on cash is lack of consumer demand. In any case, if corporations already have plenty of cash they’re not using, why would giving them a tax break that adds to this pile of cash do anything to accelerate recovery?

[…]

Lack of corporate cash is not the problem facing America. Big business already has the money it needs to expand; what it lacks is a reason to expand with consumers still on the ropes and the government slashing spending.

What our economy needs is direct job creation by the government and mortgage-debt relief for stressed consumers. What it very much does not need is a transfer of billions of dollars to corporations that have no intention of hiring anyone except more lobbyists.”

BTW Bill, I don’t think we need economic advice from the president who set “too big to fail” in motion with the repeal of Glass–Steagall, or the president who lit the fuse on the derivatives time-bomb with the Commodity Futures Modernization Act, or the president who fired Brooksley Born when she tried to warn us about what would happen if derivatives weren’t regulated. Keep it to yourself. Please.

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