Economy Archives - Page 15 of 22

NYTimes: U.S. to Order Steep Pay Cuts at Firms That Got Most Aid; GOP: Reward Their Greed

Posted on October 21, 2009 by TL

WASHINGTON — Responding to the furor over executive pay at companies bailed out with taxpayer money, the Obama administration will order the firms that received the most aid to slash compensation to their highest-paid employees, an official involved in the decision said on Wednesday.

The plan, for the 25 top earners at seven companies that received exceptional help, will on average cut total compensation by about 50 percent. The companies are Citigroup, Bank of America, American International Group, General Motors, Chrysler and the financing arms of the two automakers.

Some executives, like the top traders at A.I.G., will face tight limits on their pay. In addition, the top-paid employees at all the affected companies will face new limits on their perks.

The plan will also change the form of the pay to align the personal interests of the executives with the longer-term financial health of the companies. For instance, the cash portion of the executives’ salaries will be slashed on average by 90 percent, and the rest will be replaced by stock that cannot be sold for years.

But while the plan would pare compensation substantially from what the highest-paid people at the companies might have received under normal circumstances, it would still permit multimillion-dollar pay packages. And it would have no direct impact on firms that did not receive government bailouts or that have already repaid loans they received from Washington, leaving it unclear how much effect, if any, it will have on the broader issues relating to executive compensation, income inequality and the populist animosity toward Wall Street and corporate America.

The plan, which was written by Kenneth R. Feinberg, the official at the Treasury Department in charge of setting compensation for bailed-out companies, will be made public in a few days. The official who described the plan’s basic components did not disclose the particular impact on specific employees of the firms.

Three cheers!

To Keith Olbermann: Let’s All Take Credit for “Medicare Part E” and Get It Done Already

Posted on October 21, 2009 by TL

I was listening to Countdown this evening listening to Keith Olbermann pat himself on the back for calling for a "rebranding" of the term "public option." Olbermann suggested calling the alternative to for-profit health insurance "Medicare Part E — ‘E’ for ‘Everyone.’ "

That’s a great idea, but Keith is hardly the first to name the new plan. For that, I credit Thom Hartmann, who wrote on September 9, 2009:

The President this morning admitted on national television that he lost control of the message with health care. It’s time to reboot – and use a very, very, very simple message so all Americans can understand it.

Let’s use Medicare, which nearly every American understands. Just create “Medicare Part E” where the “E” represents “everybody.” Just let any citizen in the US buy into Medicare.

It would be so easy. No need to reinvent the wheel with this so-called “public option” that’s a whole new program from the ground up. Medicare already exists. It works. Some people will like it, others won’t – just like the Post Office versus FedEx analogy the President is so comfortable with.

Just pass a simple bill – it could probably be just a few lines, like when Medicare was expanded to include disabled people – that says that any American citizen can buy into the program at a rate to be set by the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (HHS) which reflects the actual cost for us to buy into it.

Thus, Medicare Part E would be revenue neutral!

To make it available to people of low income, Congress could raise the rates slightly for all currently non-eligible people (like me – under 65) to cover the cost of below-200%-of-poverty people. Revenue neutral again.

This blows up all the rumors about death panels and grandma and everything else: everybody knows what Medicare is. Those who scorn it can go with United Healthcare and it’s $100 million/year CEO. Those who like Medicare can buy into Part E. Simplicity itself.

And there’s more. Hartmann’s analysis also appeared in CommonDreams.org.

I don’t want to detract from Mr. Olbermann. House Majority Whip James E. Clyburn thanked Keith publicly this evening on Countdown, saying he heard the term first from Mr. Olbermann, and at least one Blue Dog Democrat has thrown his support behind Medicare Part E. Medicare Part E would not be single payer. Since everyone is taking credit, I’ll pat myself on the back also for writing this on August 7, 2009. However, I only wrote that after I heard the term "Medicare Part E" first on Thom Hartmann’s radio program, at least a month before he wrote his analysis. And, to be honest, my call was for a single-payer system. “Medicare Part E” would be an opt-in insurance program, entirely optional. Do you like your for-profit health insurance company? Well, you’ll be allowed to keep it.

Olbermann’s commentary is from his special commentary on October 7, nearly a month after Thom Hartmann:

Once you said "Medicare For Everybody," there would be just as much to explain. If you were under 65 you’d be paying for it. You wouldn’t have to buy it. You wouldn’t have to change from whatever you have now. There are just as many caveats.

Still, the intent of all this would be clearer. Much of the criticism of health care reform is coming from those who have or are about to get Medicare and, in confusion, in fear, in the kind of indescribable realization that we are far closer to the end than to the beginning, they are suddenly mortally afraid that health care reform will take it away from them. "Medicare For Everybody," might not be literally true, but instead of terrifying, it would be reassuring. And the explanations and the caveats would be listened to, and not shouted down, as anger and fear — fear, remember, of death – swell up inside.

Thom Hartmann has been on Countdown before. Keith, invite him back and give him credit as well. After all, the best ideas always happen when no one cares who gets the credit.

I’m cautiously optimistic that this will actually happen.

Keith deserves credit for his incredible commentary. Thom Hartmann deserves credit as well. Let’s all take credit for the concept, the name, and make "Medicare Part E for Everyone" finally happen.

Senator Roland Burris Definitively Favors Government Health Plan

Posted on October 15, 2009 by TL

Washington, D.C.– United States Senator Roland Burris (D-IL) wants health care reform with a government health insurance plan and he’s willing to fight for it, says the Wall Street Journal.

From the Chicago Sun-Times:

The Wall Street Journal named him as one of six senators to watch in the coming days as the Senate’s no-public-option bill is merged with the House’s public-option bill.

The other five senators are Republicans and conservative Democrats averse to a public option. Burris, the Journal says, is the one senator out of 100 most insistent that the final bill have a public option:

"The Wild Card: Illinois Democratic Sen. Roland Burris. Mr. Burris has announced his intention to oppose any bill without a public option. . . . Because he isn’t standing for re-election, Mr. Burris has little to lose," the article states.

And from the Wall Street Journal:

The Wild Card: Illinois Democratic Sen. Roland Burris. Mr. Burris has announced his intention to oppose any bill without a public option, and Sens. Bernie Sanders (I., Vt.) and John Rockefeller (D., W.Va.), among others, have also voiced a strong desire for a public option. The message: Democrats at their peril shift to the right to court centrists and Republicans. Because he isn’t standing for re-election, Mr. Burris has little to lose. Democrats hope liberals will support a health overhaul in the end, but they have scant margin for error.

GOP’s Olympia Snowe On Board for Democratic Health Care Reform Bill

Posted on October 13, 2009 by TL

Already referenced here, t his one deserves its own headline.

From WTAE Pittsburgh:

Washington– Republican Sen. Olympia Snowe broke with her party Tuesday and said she will vote for a Democratic health care bill, handing President Barack Obama a much-sought boost in his quest to expand access to medical coverage to all Americans.

Approval of the legislation by the Senate Finance Committee was a foregone conclusion going into Tuesday’s vote, since Democrats outnumber Republicans 13-10 on the panel. But Snowe’s decision gave the vote a significance that transcends partisan divisions. For months, congressional Republicans have been virtually unanimous in denouncing the Democratic bills as an unwarranted expansion of government influence.

The Maine senator kept virtually all of Washington guessing about how she would vote until she announced it late in the Senate Finance Committee debate Tuesday. She told her colleagues she has misgivings about the bill, but "when history calls, history calls."

Perhaps the ice is thawing between Democrats and Republicans. It would be nice to have Senator John McCain on board too. That would be good for the country.

Will Health Insurance Industry Report Be Enough to Set Congress on Fire?

Posted on October 13, 2009 by TL

The health insurance industry issued a report that has Democrats fuming, finally. Will it be enough to set Congress on fire for reform?

From the Sun-Times:

Insurance companies aren’t playing nice any more.

Their message that health care legislation will drive up premiums for people who already have coverage comes as a warning shot at a key point in the debate and threatens President Obama’s top domestic priority.

Democrats and their allies scrambled on Monday to knock down a new industry-funded study forecasting that Senate legislation, over time, will add thousands of dollars to the cost of a typical policy. “Distorted and flawed,” said White House spokeswoman Linda Douglass. “Fundamentally dishonest,” said AARP’s policy strategist, John Rother. “A hatchet job,” said a spokesman for Senate Finance Committee chairman Max Baucus (D-Mont.).

But the health insurance industry’s top lobbyist in Washington stood her ground. In a call with reporters, Karen Ignagni, president of America’s Health Insurance Plans, pointedly refused to rule out attack ads on TV featuring the study, though she said she believed the industry’s concerns could be amicably addressed.

At the heart of the industry’s complaint is a decision by lawmakers to weaken the requirement that millions more Americans get coverage. Since the legislation would ban insurance companies from denying coverage on account of poor health, many people will wait to sign up until they get sick, the industry says. And that will drive up costs.

The first sentence of this article is absurd, “Insurance companies aren’t playing nice any more.”

When have the insurance companies ever played nice? It’s not about playing nice. It’s not about health insurance profits. It’s about people’s lives against an industry’s quest for obscene profits.

The good news today is that GOP Senator Olympia Snowe says she will support the reform bill currently in the Senate Finance Committee. The rest of the GOP and the Conservadems need to jump on board also.

Look, the New Deal was passed because the rich got it. They understood that a 90% tax rate on upper income brackets was good for everyone in the economy, including the rich! Do the rich really want to see the United States return to a Gilded Age with tent cities popping up in ever suburb?

I’ve said it before: the for-profit health insurance industry should be illegal. The purpose of the industry is to make a profit, an obscene profit.

Congress needs to finally feel the fire. Right now it’s burning us alive.

Business Week: Job Crisis Hits Young People Especially Hard

Posted on October 11, 2009 by TL

As if we need any more proof that we’ve all hit hard times, Business Week focuses on the trouble young people are having finding employment.

I’ve heard enough stories about recent college graduates lucky to get part time jobs in the fast food industry. It’s bad. The money isn’t flowing — or what little we have is all flowing to pay off the credit card industry.

Americans would be wise to abandon the credit card industry. Pay them off, and tear them up. They are absolute bastards. All of them.

From Business Week:

Bright, eager—and unwanted. While unemployment is ravaging just about every part of the global workforce, the most enduring harm is being done to young people who can’t grab onto the first rung of the career ladder.

Affected are a range of young people, from high school dropouts, to college grads, to newly minted lawyers and MBAs across the developed world from Britain to Japan. One indication: In the U.S., the unemployment rate for 16- to 24-year-olds has climbed to more than 18%, from 13% a year ago.

For people just starting their careers, the damage may be deep and long-lasting, potentially creating a kind of "lost generation." Studies suggest that an extended period of youthful joblessness can significantly depress lifetime income as people get stuck in jobs that are beneath their capabilities, or come to be seen by employers as damaged goods.

President Obama’s Weekly Address: New Momentum for Health Reform

Posted on October 10, 2009 by TL

Washington, D.C.– The historic movement to bring real, meaningful health insurance reform to the American people gathered momentum this week as we approach the final days of this debate. Having worked on this issue for the better part of a year, the Senate Finance Committee is finishing deliberations on their version of a health insurance reform bill that will soon be merged with other reform bills produced by other Congressional committees.

After evaluating the Finance Committee’s bill, the Congressional Budget Office – an office that provides independent, nonpartisan analysis – concluded that the legislation would make coverage affordable for millions of Americans who don’t have it today. It will bring greater security to Americans who have coverage, with new insurance protections. And, by attacking waste and fraud within the system, it will slow the growth in health care costs, without adding a dime to our deficits.

This is another milestone on what has been a long, hard road toward health insurance reform. In recent months, we’ve heard every side of every argument from both sides of the aisle. And rightly so – health insurance reform is a complex and critical issue that deserves a vigorous national debate, and we’ve had one. The approach that is emerging includes the best ideas from Republicans and Democrats, and people across the political spectrum.

In fact, what’s remarkable is not that we’ve had a spirited debate about health insurance reform, but the unprecedented consensus that has come together behind it. This consensus encompasses everyone from doctors and nurses to hospitals and drug manufacturers.

And earlier this week, Governor Arnold Schwarzenegger of California and New York City Mayor Michael Bloomberg came out in support of reform, joining two former Republican Senate Majority Leaders: Bob Dole and Dr. Bill Frist, himself a cardiac surgeon. Dr. Louis Sullivan, Secretary of Health and Human Services under President George H.W. Bush, supports reform. As does Republican Tommy Thompson, a former Wisconsin governor and Secretary of Health and Human Services under President George W. Bush. These distinguished leaders understand that health insurance reform isn’t a Democratic issue or a Republican issue, but an American issue that demands a solution.

Still, there are some in Washington today who seem determined to play the same old partisan politics, working to score political points, even if it means burdening this country with an unsustainable status quo. A status quo of rising health care costs that are crushing our families, our businesses, and our government. A status quo of diminishing coverage that is denying millions of hardworking Americans the insurance they need. A status quo that gives big insurance companies the power to make arbitrary decisions about your health care. That is a status quo I reject. And that is a status quo the American people reject.

The distinguished former Congressional leaders who urged us to act on health insurance reform spoke of the historic moment at hand and reminded us that this moment will not soon come again. They called on members of both parties seize this opportunity to finally confront a problem that has plagued us for far too long.

That is what we are called to do at this moment. That is the spirit of national purpose that we must summon right now. Now is the time to rise above the politics of the moment. Now is the time to come together as Americans. Now is the time to meet our responsibilities to ourselves and to our children, and secure a better, healthier future for generations to come. That future is within our grasp. So, let’s go finish the job.

Source: whitehouse.gov

Pennsylvania Finally Gets a Budget, but the Fix is a Real Gamble

Posted on October 10, 2009 by TL

From the Pittsburgh Post-Gazette:

Gov. Ed Rendell ended one of the most contentious statehouse conflicts in recent history when he signed a $27.8 billion spending plan last night, the 101st day of the nation’s longest budget impasse.

The plan cuts overall spending by 1 percent while it adds $300 million that the governor had insisted on for public schools.

The budget agreement allows the state to begin issuing 12,000 checks to day-care centers, counties, social service agencies and others that haven’t received state subsidies since July. Many have had to lay off workers, take out loans or shut down for lack of funds.

Passage of the budget “guarantees our county social service providers get paid and our children’s day-care services are restored,” said House Majority Leader Todd Eachus, D-Luzerne.

There is still reason for concern in Pennsylvania. The wildest gamble in the budget is the plan to fund state colleges, universities, and museums with casino money:

They have yet to agree on the details of a plan to bring poker, blackjack and other table games to Pennsylvania casinos. That would generate $200 million needed to help provide state funding to Pitt, Penn State, Lincoln and Temple universities as well has several museums, including the Carnegie Museums of Pittsburgh.

Frankly, I don’t know how reliable a revenue stream casinos will prove to be in Pennsylvania. Certainly, even as we struggle to emerge from the current Great Bush Recession, the PA State Legislature must begin planning for the next recession, when revenues will take a dive again. Gambling will certainly suffer when that happens.

As a side note, I’m always pleased to quote and link back to the Post-Gazette, my first boss. I used to deliver Pittsburgh’s morning paper every day before school. The Pittsburgh Press was still in operation at the time. Pittsburgh residents and residents of all the surrounding communities woke up the the Post-Gazette, and read the Press in the evenings.

I’m glad to see the Post-Gazette is still around. The Pittsburgh Press ceased publication on May 17, 1992.

As Afghanistan Enters Year 9, We Tally the Cost of War

Posted on October 5, 2009 by TL

It’s time to take stock of the numbers again, as the war in Afghanistan enters its ninth year Tuesday.

Our National Debt stands at $11,930,445,364,162.68 as of this writing. That’s a tad under $12 trillion.

The Total Cost of War since the wars in Iraq and Afghanistan began is currently $917,149,614,395. That’s just under $1 trillion. $688,690,605,993 has been spent in Iraq, $228,459,269,025 in Afghanistan. If the numbers don’t add up, that’s because the counter at CostofWar.com is constantly moving. The total right now is $917,150,203,805.

Yes, they’re pretty accurate. Here’s more about the counters:

The numbers indicate all of the approved funding for the wars to date. In addition to this approved amount, the FY2010 budget shows a $130 billion request for more war spending. This would bring total war spending in Iraq and Afghanistan to more than $1 trillion. When all FY2010 war-related amounts are approved, we will adjust the counters so that they reach the new totals at the end of FY2010.

If you should compare the amount displayed on the Cost of War counters with the numbers available in our information sheets, please note that the information sheets include all war spending to date, the same number that the counters will reach at the end of the 2009 fiscal year.

Total War Funding since 2001

To date, $915.1 billion dollars have been allocated to the wars in Iraq and Afghanistan. This counter is designed so that on September 30, 2009, the end of the federal government’s 2009 fiscal year, the counter will reach that total number. Likewise, counters found here for states and towns will also reach their portion of this number at the end of FY2009.

Cost of War in Iraq since 2003

To date, $687 billion dollars have been allocated to the war in Iraq since 2003. This counter is designed so that on September 30, 2009, the end of the federal government’s 2009 fiscal year, the counter will reach that total number. Please note that the cost of war in Iraq has decreased since our last estimate. This is because a larger proportion of spending was allocated to Afghanistan than originally estimated.

Cost of War in Afghanistan since 2001

To date, $228 billion dollars have been allocated to the war in Afghanistan since 2001. This counter is designed so that on September 30, 2009, the end of the federal government’s 2009 fiscal year, the counter will reach that total number. To learn more about the cost of war in Afghanistan, see our April 2009 publication.

Here’s the Cost of War in Iraq:

Here’s the Cost of War in Afghanistan:

Here is the total of both wars combined:

Now, the human loss…

4,347 Americans have died in Iraq since the war began on March 19, 2003. 3,475 of them died in combat.

869 Americans have died in Afghanistan. 219 from the UK died in Afghanistan, 356 from other countries, for a total of 1,444 dead on the coalition side.

Somewhere between 93,345 and 101,862 Iraqi civilians have died in the war in Iraq. That’s civilians. Just Foreign Policy puts the total number of civilians due to the war at 1,339,771.

The Washington Post currently lists 5,130 Americans dead in both wars, and has pictures of all of the fallen.

President Obama, these are your wars now.

Franklin D. Roosevelt: “The Economic Bill of Rights”

Posted on October 5, 2009 by TL

This was once America, rescued at last from the gilded age.

We can do this again. We can revive and seal the New Deal.

The rich were on board because they had lived through the Great Depression, and they knew a thriving middle class was the path to the future of a strong America. Less for a few meant more for all.

Let’s make this happen again.

From FDR:

It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known. We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.

This Republic had its beginning, and grew to its present strength, under the protection of certain inalienable political rights—among them the right of free speech, free press, free worship, trial by jury, freedom from unreasonable searches and seizures. They were our rights to life and liberty.

As our nation has grown in size and stature, however—as our industrial economy expanded—these political rights proved inadequate to assure us equality in the pursuit of happiness.

We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence. “Necessitous men are not free men.” People who are hungry and out of a job are the stuff of which dictatorships are made.

In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all—regardless of station, race, or creed.

Among these are:

The right to a useful and remunerative job in the industries or shops or farms or mines of the nation;

The right to earn enough to provide adequate food and clothing and recreation;

The right of every farmer to raise and sell his products at a return which will give him and his family a decent living;

The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;

The right of every family to a decent home;

The right to adequate medical care and the opportunity to achieve and enjoy good health;

The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;

The right to a good education.

All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.

America’s own rightful place in the world depends in large part upon how fully these and similar rights have been carried into practice for our citizens.

source: The Public Papers & Addresses of Franklin D. Roosevelt (Samuel Rosenman, ed.), Vol XIII (NY: Harper, 1950), 40-42