Weekly Audit: Government Shutdown Averted, But At What Cost?

By Lindsay Beyerstein, Media Consortium blogger

Congressional leaders and President Barack Obama reached an eleventh hour budget deal on Friday night, to fund the government for the rest of the 2011 fiscal year and avert a government shutdown for the time being.

The deal would cut about $38 billion, Amy Goodman reports for Democracy Now!, including $13 billion in cuts to the Department of Health, Labor, and Human Services.

John Nichols describes the nuts and bolts of the stopgap plan in The Nation:

The arrangement worked out Friday night averted the threatened shutdown with a two-step process. First, the House and Senate passed a one-week spending bill that addressed the immediate threat. That should give Congress and the White House time to finalize a fiscal 2011 spending deal—on which they have agreed in principle—before an April 15 deadline.

The Republicans will not be allowed to zero out Planned Parenthood. Instead they were allowed a separate, largely symbolic vote, which passed the House, but which is expected to die in the Senate.

Planned Parenthood and ACORN

Nick Baumann of Mother Jones argues that the deal is a case study in the priorities of the Democratic Party. At the last minute, congressional Democrats rallied to save Planned Parenthood. The venerable family planning organization was under fire because of an undercover video sting by Lila Rose, a onetime protegee of conservative propagandist James O’Keefe, who himself pulled a similar stunt against the anti-poverty, pro-voter registration group ACORN in 2009.

O’Keefe’s videos created a media firestorm and Congress rushed to de-fund ACORN with little protest from Democrats. Subsequent independent investigations revealed that the tapes had been deceptively edited. Vindication came too late for ACORN, which was forced to close its doors.

Baumann argues that Democrats spared Planned Parenthood and sacrificed ACORN because ACORN didn’t have friends in the right places:

Abortion rights affect everyone. But to put it bluntly, big Dem donors care a lot more about abortion rights than they do about community organizers in inner cities.

Specious “victory”

In the days leading up to the deal, the media created the expectation that the budget was a game that one party would “win.” Paul Waldman of The American Prospect argues that in his eagerness to declare “victory” in the budget showdown, President Obama is undermining his own political agenda.

It would have been nice if when announcing the budget deal, President Obama had set aside the politician’s natural inclination to declare victory and his own preference for casting himself as the adult who settles things between the squabbling children. He could have said something like this: “The deal we just made is preferable to a government shutdown, which would have been truly disastrous. But nobody should mistake it for anything but the tragedy it is. As a result of the cuts Republicans have forced, people who rely on government services will suffer, and the economy will lose jobs. The Republicans held the government hostage, and we had no choice but to pay the ransom.”

By rushing to champion the spending cuts, Obama may be saving face, but he’s also setting a precedent that will make the next round of cuts even easier. The truth is that Democrats conceded under duress, they didn’t volunteer to cut spending because they thought it would help the country.

Indeed, Democrats agreed to far more cuts than the Republicans initially asked for. Cenk Uygur of the Young Turks argues that the Tea Party and the ostensibly more mainstream Republicans set up a very effective good cop/bad cop negotiating strategy in which the Democrats would offer cuts and the mainstream Republicans would say, “I’d like to help you, really I would, but you know my partner isn’t going to like that.”

Corporate taxes

Joshua Holland of AlterNet explains how corporate American has successfully lobbied to shift an ever-increasing share of its tax burden onto the backs of individual citizens:

Well, consider this: in the 1940s, corporations paid 43 percent of all the federal income taxes collected in this country. In the 1950s, they picked up the tab for 39 percent. But by the time the 1990s rolled around, corporations were paying just 18.9 percent of federal income taxes, and they forked over the same figure in the first decade of this century. We – working people – paid the difference.

Something to think about as we prepare to file our income tax returns.

This post features links to the best independent, progressive reporting about the economy bymembers of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The MulchThe Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Weekly Pulse: The Republicans’ War On Women

By Lindsay Beyerstein, Media Consortium blogger

The entire federal government might shut down over birth control. Yes, birth control. This special edition of the Pulse is about the ongoing war against women being waged in Congress and in state legislatures nationwide.

Cutting birth control

Last Friday, the House voted to amend the continuing resolution to fund the federal government to defund the $317 million Title X Family Planning Program, a major beneficiary of which is Planned Parenthood. None of this money funds abortions. Instead, it goes to birth control, cancer screenings, and other reproductive health services for 5 million low-income Americans.

This kind of preventive care is highly cost-effective. Every federal family planning dollar saves an estimated $4 tax dollars on unintended pregnancy costs alone. Saving money by de-funding contraception is like “saving money” by not paying your rent. It’s not savings if you end up staying in a hotel that costs even more.

As Nick Baumann reports for Mother Jones, Senate Democrats are confident that they can defeat the measure. However, if that happens and the House Republicans won’t pass an acceptable alternative, the federal government will run out of money and shut down until the impasse is resolved.

Julianne Hing, blogging at TAPPED, wrote of last Friday’s House vote to de-fund Planned Parenthood:

I find it difficult to summon the energy to be angered or even shocked by the news anymore. I wouldn’t describe my reaction on Friday as either of those two. It felt like something much deeper — like an attack on women and women’s access to health care. I took it personally.

The vote was just the latest assault on women’s health care by House Republicans. H.R. 3 initially proposed to redefine rape as “forcible rape.” That provision was withdrawn amid public outcry, but the bill would still effectively eliminate private health insurance coverage for abortion. H.R. 358 would give hospitals a loophole to not refer women for abortion, even if their lives are in danger.

The miscarriage mafia

Georgia state Rep. Bobbie Franklin (R) has introduced a bill that would investigate unsupervised miscarriages as potential murders, Robin Marty reports for Care2.

Here’s the relevant text of the bill, H.B.1:

When a spontaneous fetal death required to be reported by this Code section occurs without medical attendance at or immediately after the delivery or when inquiry is required by Article 2 of Chapter 16 of Title 45, the ‘Georgia Death Investigation Act,’ the proper investigating official shall investigate the cause of fetal death and shall prepare and file the report within 30 days[.]

The bill opens with the familiar anti-choice tactic of defining a fetus as a person and declaring abortion to be murder. Even fervent anti-choicers may regard this as something of an overreach on Franklin’s part. Historically, anti-choicers have sought to pass discrete “personhood amendments” while maintaining the polite fiction that these laws have nothing to do with restricting abortion. Franklin is not a fan of the incremental approach. He is seeking to redefine a fetus as a person and abortion as murder in a single piece of legislation.

As Marty notes, one third of all pregnancies end in miscarriages. In early miscarriages, the woman may never even know she was pregnant. So, Franklin essentially wants to criminalize unauthorized vaginal bleeding in Georgia. Setting aside the basic human rights of women, as Franklin is only too happy to do, his miscarriage bill is about as practical as his bid to make Georgians pay their state taxes in gold and silver coins.

State legislatures all over the country are weighing ever more draconian restrictions on abortion. Republican lawmakers in Ohio have proposed legislation to ban abortion of any fetus with a heartbeat, Daniel Tencer of Raw Story reports. South Dakota Republicans were forced to back off a proposed law that appeared to legalize the murder of abortion providers.

Scott Walker’s anti-abortion crusade

You probably know Wisconsin Gov. Scott Walker as the Tea Party favorite who wants to take collective bargaining rights away from the state’s public employees. You may not know that Walker is also a longtime anti-abortion crusader. Andy Kroll of Mother Jones reports that Walker, a former president of his college’s chapter of Students for Life, has a long history of campaigning against abortion, contraception, and sex ed. As a gubernatorial candidate, Walker won the endorsement of the hardline Pro-Life Wisconsin, which even opposes abortion to save the life of the woman.

As I reported in RH Reality Check, Walker’s anti-union “budget repair” bill also contains an all-out attack on a popular and successful Medicaid program to provide birth control to Wisconsinites whose incomes would qualify them for Medicaid if they became pregnant. The program saves Wisconsin an estimated $45 million a year in maternal and infant health costs alone and brings in 9 federal dollars for every on dollar spent by the state.

The Republicans swept to power with promises of limited government and fiscal conservatism. Now that they’re in office, their true agenda appears to be restricting women’s freedom at taxpayers’ expense.

This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

Campaign Cash: Corporations Get More Power, Political Parties Get Less

 

by Zach Carter, Media Consortium blogger

War chests from right-wing billionaires and corporate titans are funding tremendous portions of political activity, from the so-called grassroots activism of the Tea Party to the streamlined lobbying assaults of the nation’s largest corporations.

In the aftermath of the Supreme Court’s wildly unpopular ruling in Citizens United v. Federal Elections Commission, secret election financing by elites is exploding, even as the public visibility of such electoral purchasing power evaporates.

 

Corporations get more freedom as political parties get less

As Jamelle Bouie emphasizes for The American Prospect, election funding from political committees and non-profits is already up 40 percent from 2008 levels. But the oft-cited the liberation of the corporate purse was accompanied by less-well-known constraints on political parties themselves. While corporations like Wal-Mart and Bank of America are free to spend as much as they want attacking or promoting specific candidates, the political parties themselves cannot.

As Bouie notes, this scenario further rigs the electoral game in favor of the wealthy and corporations. Candidates who know that their party can’t help them out become even more dependent on corporate cash during elections. And while few entities are less popular right now than the Republican and Democratic parties, they are ultimately accountable to their voters. They reach out to a broad array of individuals across the country, while corporations merely advance their own interests.

Political parties—however imperfect—can serve as a check on such destructive corporate influence. Citizens United has made that check much weaker. As Jesse Zwick writes for The Washington Independent, political parties used to dominate independent election spending. This year, for the first time, thanks to Citizens United, front-groups and corporations have taken the lead.

The Tea Party “grassroots” movement is anything but

Billionaires are on the attack, exploiting campaign finance loopholes to prop-up phony “grassroots” political movements. The most egregious—and successful—effort has been waged by David Koch, a long-time GOP fundraiser who is now backing major Tea Party organizers. Koch is the executive vice president of Koch Industries, Inc., which refines and distributes petroleum and other raw materials.

As Adele Stan details in her latest in-depth expose for AlterNet and The Nation Investigative Fund, Koch has found ways to funnel money to the Tea Party in just about every way imaginable. But it’s most sinister maneuver was the establishment of two right-wing front groups that keep their donors anonymous. After Citizens United, we’ll never know how much money Koch is funneling to the Tea Party, and his front groups—FreedomWorks and Americans for Prosperity—provide the same cover for other elites.

How much cover? Americans for Prosperity brags that they’ll spend at least $45 million on the 2010 elections, while FreedomWorks plans to throw in another $10 million.

As Stan emphasizes, these two groups are the major organizers of all things Tea Party. They provided logistical organizing for Glenn Beck’s 9/12 rally, held over 300 rallies against health care reform and hosted “voter education” workshops pushing the glories of deregulation to anyone who would listen. They even have an unofficial partnership with Fox News, hosting conservative Fox personalities at their rallies, which are, in turn, promoted by Fox programming. Glenn Beck is even featured in advertisements and fundraising pitches for FreedomWorks.

The anonymity provided by Koch’s front-groups is critical to the Tea Party’s appeal. In popular media, the Tea Party is often described as a grassroots coalition of ordinary, mad-as-hell citizens. That image is hard to sustain in the face of a wildly expensive top-down campaign orchestrated by billionaires. As Stan explains:

The armies of angry white people with their “Don’t Tread on Me” flags, the actual grassroots activists, are not the agents of the Tea Party revolt, but its end users, enriching the Tea Party’s corporate owners just as you and I enrich Google through our clicks.

Of  course, Koch isn’t the only man operating anonymous front-groups. The Citizens United decision allowed corporations to spend unlimited amounts of their own cash directly influencing elections. But so long as that money is laundered through a third-party, they can keep these expenditures out of the public eye.

Oil giants dominate U.S. Chamber of Commerce

Nobody has exploited this loophole more aggressively than the U.S. Chamber of Commerce, a lobbying clearinghouse for the nation’s largest corporations.

The Chamber doesn’t just rely on domestic donors. It also accepts cash from dozens of foreign corporations. As Kate Sheppard explains for Mother Jones, no less than 14 foreign oil giants belong to The Chamber, paying hundreds of thousands of dollars in annual dues alone. This is important, because as sweeping and destructive as Citizens United was, it did not grant foreign corporations the right to spend on U.S. elections.  There’s nothing xenophobic about that—it’s a U.S. election, after all, and foreign firms don’t have to live with many of the social and ecological consequences of U.S. deregulation. The Chamber insists it has accounting devices in place to separate its funding and keep its operations within the law, but so far, it hasn’t explained how these work.

But ultimately, as Sheppard and her MoJo colleague Nick Baumann note, the influence of domestic corporations on the American political process is equally sinister as foreign corporate influence. If the narrow interests of a U.S. corporation hijack our democracy with campaign war chests, that can be just as bad as subjecting our democracy to the whims of a foreign corporation. Whether the Chamber’s foreign funding follows the letter of the law or not, the organization is still running a destructive campaign to further entrench corporate power in our political system—and shield those same corporate titans from public accountability.

And the existing campaign finance regulators aren’t even enforcing the meager laws that do exist to curb legalized bribery. As Jesse Zwick explains in another piece for The Washington Independent, three recent appointees to the Federal Election Commission have waged an all-out war to mire the agency in gridlock, preventing it from cracking down on straightforward abuses.  President George W. Bush actually named former Rep. Tom Delay (R-TX)’s campaign finance lawyer to the Federal Elections Commission (FEC). His term has expired, but getting new FEC commissioners confirmed by the Senate in the face of Republican filibusters appears nearly impossible. So Delay’s lawyer, Donald McGahn, is still working to keep campaign finance laws from being enforced, and succeeding.

Democracy is not a corporate bidding war. Corporate cash belongs in the board room, not the voting booth.

This post features links to the best independent, progressive reporting about the mid-term elections and campaign financing by members of The Media Consortium. It is free to reprint. Visit The Media Consortium for more articles on these issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

Weekly Audit: Wall Street Goes to the Movies

by Zach Carter, Media Consortium blogger

Last week, the U.S. Senate rejected a plan that would have broken up the nation’s six largest banks firms into firms that could fail without wreaking havoc on the economy. Even though the defeat reinforces Wall Street’s political dominance, there is still room for a handful of other useful reforms, like banning banks from gambling with taxpayer money and protecting consumers from banker abuses. After looting our houses, banks are now pushing for the ability to bet on movie box-office receipts, and will keep trying to financialize anything they can unless Congress acts.

Wall Street calls the shots

Writing for The Nation, John Nichols details last week’s Capitol Hill damage. Today’s financial oligarchy, in which a handful of bigwig bankers and their lobbyists are able to write regulations and evade rules they don’t like, will still be in place after the Wall Street reform bill is passed. The lesson is clear, as Nichols notes:

Whatever the final form of federal financial services reform legislation, one thing is now certain: The biggest of the big banks will still be calling the shots.

Still worth fighting for

As I emphasize for AlterNet, Congress has made a terrible mistake here, but there is still room for reform. It took President Franklin Delano Roosevelt seven years to enact his New Deal banking laws. It took even longer to reshape public opinion of monopolies when President Theodore Roosevelt took on Corporate America in the early 1900s.

What’s still worth fighting for? We have to curb the derivatives market—the multi-trillion-dollar casino that destroyed AIG. We have to impose a strong version of the Volcker Rule, which would ban banks from engaging in speculative trading for their own accounts. We have to change the way the Federal Reserve does business and force the government’s most secretive bailout engine to operate in the open. And we have to establish a strong, independent Consumer Financial Protection Agency to ensure that the horrific subprime mortgage abuses are not repeated.

As Nomi Prins details for The American Prospect, the current reform bill will not effectively deal with the dangers posed by hedge funds and private equity firms—companies that partnered with banks to blow up the economy through investments in subprime mortgages. That means that whatever happens with the current bill, Congress must again take action next year to rein in other financial sector excesses.

The derivatives casino at the movies

As Nick Baumann demonstrates for Mother Jones, banks are doing everything they can to gobble up other productive elements of the economy. The economy crashed in 2008 in large part because banks had used the derivatives market to place trillions of dollars in speculative bets on the housing market. This wasn’t lending, it was pure gambling: Instead of using poker chips, bankers placed their bets with derivatives. But, as Baumann emphasizes, banks are now looking to expand the sort of thing they can make derivatives gambles with. The latest proposal is to allow banks to bet on the box office success of movies. That’s right, banks would be gambling on movies.

Hollywood may be shallow, but it isn’t stupid. It doesn’t want to see the banking industry repeat its destructive looting of the housing industry on the movie business, and is pushing hard to ban banks from betting on movies. But we can’t count on every industry having a powerful lobby group to counter every assault from the banking system.

Taking stock in schools

Consider the unsettling report by Juan Gonzales of Democracy Now!. Gonzales details how big banks gamed the charter school system to score huge profits while simultaneously saddling taxpayers with massive debts that make teaching kids supremely difficult. By exploiting multiple federal tax credits, banks that invest in charter schools have been able to double their money in seven years—no small feat in the investing world—while schools have seen their rents skyrocket. One school in Albany, N.Y. saw its rent jump from $170,000 to $500,000 in a single year.

About that unemployment rate…

It’s not like public schools are flush with cash right now. The $330,000 increase in rent could pay the salaries of more than a few teachers. As the recession sparked by big bank excess grinds on, even the good news is pretty hard to swallow. As David Moberg emphasizes for Working In These Times, the economy added 290,000 jobs in April, but the unemployment rate actually climbed from 9.7 percent to 9.9 percent in March. That’s because the unemployment rate only counts workers who are actively seeking a job—if you want a job but haven’t found one for so long that you give up, you’re not technically “unemployed.” All of those “new” workers are driving the official figures up.

In other words, it’s still rough out there. And likely to stay rough as state governments try to deal with the lost tax revenue from plunging home values and mass layoffs. Nearly half of all unemployed people in the U.S. have been out of a job for six months or more. And while we’d be much worse off without Obama’s economic stimulus package, that percentage is likely to grow this year, Moberg notes.

This is what unrestrained banking behemoths do. They book big profits and bonuses for themselves, regardless of the consequences for the rest of the economy. Congress absolutely must impose serious financial reform this year. After the November election, breaking up the banks must once again be on the agenda when Congress considers the future fate of hedge funds, private equity firms, Fannie Mae and Freddie Mac. If we don’t rein in Wall Street, banks will continue to wreak havoc on our homes, our jobs and even our schools. Congress must act.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Weekly Audit: How Deregulation Fueled Goldman Sachs’ Scam

by Zach Carter, Media Consortium blogger

Last week, the Securities and Exchange Commission filed fraud charges against Goldman Sachs and underscored what most Americans have believed for some time: Wall Street has rigged the economy in its own favor, and will stop at nothing—not even outright theft—to boost its profits. What’s worse, Goldman’s scam could have been completely prevented by better regulations and law enforcement.

Goldman’s heist

Let’s be clear. “Financial fraud” means “theft.” Goldman Sachs sold investors securities that were stocked with subprime mortgages and had been cherry-picked by a hedge fund manager named John Paulson. Paulson believed these mortgages were about to go bust, so he helped Goldman Sachs concoct the securities so that he could bet against them himself.

Goldman Sachs, like Paulson, also bet against the securities. But when Goldman sold the securities to investors, it didn’t tell them that Paulson had devised the securities, or that he was betting on their failure. By withholding crucial information from investors, Goldman directly profited from the scam at the expense of its own clients. If ordinary citizens did what the SEC’s alleges Goldman did, we’d call it stealing.

As Nick Baumann emphasizes for Mother Jones, the SEC’s suit against Goldman is just the tip of the iceberg. During the savings and loan crisis of the late 1980s, literally thousands of bankers were jailed for financial fraud. Today’s crisis was much larger in scope, yet the Goldman allegations are among the first serious charges of legal wrongdoing to emerge (other complaints have been filed against Regions Bank and former Countrywide CEO Angelo Mozilo). If the SEC or the FBI are doing their jobs, we should see many more of these cases.

Bust ‘em up.

How do banks get away with these kinds of shenanigans and still secure epic taxpayer bailouts? It’s all about their political clout, as Robert Reich notes for The American Prospect. So long as banks are so enormous that they can ruin the economy with their collapse, the institutions will always carry tremendous political clout.

Even in the case of Goldman Sachs, which is too-big-to-fail by any reasonable standard, the SEC’s fraud case is being filed three years after the company’s alleged offense. That’s well after the company rode to safety on the Troubled Asset Relief Program, the AIG bailout and billions more in other indirect assistance—and only after multiple journalists made Goldman’s offensive transactions general public knowledge.

If we don’t break up the big banks, politically connected Wall Street titans will make sure they get bailed out when the next crisis hits, regardless of whatever laws we have on the books.

Fix the derivatives casino

If Congress doesn’t soon pass a bill to break up behemoth banks, it will be neglecting the gravest problem in our financial system today. But several other reforms are needed if Wall Street is ever going to serve a useful economic function again.

As Nomi Prins emphasizes for AlterNet, much of the Wall Street profit machine has been divorced from the economy that the rest of us live in. These days, banks make most of their money from securities trades and derivatives deals. Their actual lending business is taking a beating. That means big banks have very little incentive to promote economic well-being for every day citizens. We need to create these incentives by banning economically essential banks from engaging in securities trades, and make sure all derivatives transactions are conducted on open, transparent exchanges, just like ordinary stocks and bonds.

Better derivatives regulations could help protect against fraud. If Goldman Sachs’ sketchy subprime deal had been subject to market scrutiny on an exchange, it’s very unlikely that any investor would have bought into it. Goldman Sachs almost got away with it because the deal was secretive and beyond the scope of most regulatory oversight.

Protect whistleblowers

The Goldman case also raises significant questions about the government’s enforcement of existing financial fraud laws. Bradley Birkenfeld, a banker for Swiss financial giant UBS, helped the Department of Justice bring the largest tax fraud case in history against his company, which was helping rich Americans hide money from the IRS in offshore bank accounts.

For his cooperation, Birkenfeld was rewarded with a four-year prison sentence, even though nobody else at UBS—nobody—has been sentenced to prison over the scam. As Juan Gonzalez and Amy Goodman emphasize for Democracy Now!, Birkenfeld’s imprisonment could have something to with who exactly is hiding money with UBS.

Gonzalez discusses an interview with Birkenfeld, in which the former banker notes that the bank had a special office to handle the accounts of “politically exposed persons”— American politicians. Moreover, the top brass at UBS includes key advisors to top politicians in both parties. This is exactly the kind of influence smuggling that breaking up the banks would help fix. UBS is a multi-trillion-dollar institution with no less than 27 U.S. subsidiaries.

But protecting Birkenfeld would accomplish still more—by jailing him, the Justice Department is actively discouraging others from coming forward, and making it more difficult for regulators to enforce the law.

Greenspan’s failure

It’s abundantly clear that almost every major regulatory agency charged with curtailing financial excess failed to prevent the Crash of 2008. But that failure doesn’t mean that effective regulation is impossible—it only shows that the regulators in power failed. The top bank regulator in the U.S., John Dugan, was a former bank lobbyist.

As Christopher Hayes demonstrates for The Nation, former Federal Reserve Chairman Alan Greenspan has never had any interest in regulation whatsoever. After the crash, Greenspan insisted that nobody could have seen it coming. But as Hayes notes, many people did—Greenspan simply didn’t listen to them. These days, Greenspan is revising his story, claiming that he did in fact see the crisis coming, but that nobody could have prevented it. That is simply not credible.

Hayes draws a useful parallel Hurricane Katrina, a problem sparked by a natural event that became a catastrophe when regulators failed to take the necessary precautions. The lesson from both Katrina and the financial crash is not that government always screws up—we have plenty of examples of government preventing floods and economic calamity. The lesson we should learn is that people who don’t believe in government will never do a good job governing. As Hayes notes:

If Greenspan couldn’t figure things out, that doesn’t mean others can’t. In fact, developing systems for doing just that is called—quite simply—progress, and Alan Greenspan continues to be one of its enemies.

That is exactly the task that now presents itself before Congress: Developing a system to prevent and constrain economic destruction wielded by Wall Street. The U.S. had a system that did exactly this for more than fifty years. For the last thrity years, it has been systematically dismantled. How well Congress lives up to that challenge will define much of our economic future for decades to come.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

 

 

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