Weekly Audit: Wall Street Destroyed $8 for Every $1 Earned

 

by Lindsay Beyerstein, Media Consortium blogger

Tonight, President Barack Obama will deliver his State of the Union address. A major theme of the speech will be jobs and the economy. Let’s hope the president spares a few minutes for Wall Street reforms that might prevent a repeat of the economic collapse that we’re slowly starting to recover from.

As Kai Wright points out in ColorLines, the State of the Union is the unofficial kickoff of the 2012 election season:

The still churning foreclosures and mounding debt in black and brown neighborhoods don’t suggest a stabilized economy anywhere except Wall Street, but let’s set that familiar fight to the side for now. The point is that whether we’re talking about creating jobs or seating district court judges, the time for making policy is gone. Starting tomorrow night, it’s all talk until we vote next.

Amy Dean of Working In These Times shares Wright’s skepticism. With the Republicans in control of the House and the Democrats hanging on to the Senate, we’re looking at a legislative stalemate until the next election. Dean argues that activists should use this lull in the action to refocus their organizing at the grassroots level.

Wall Street destroyed $8 for every $1 it earned

In AlterNet, Les Leopold asks why bankers are earning such huge bonuses while the financial system is in disarray. According to standard economic theory, your compensation reflects the value of your work. Yet, according to Leopold’s back-of-the-envelope calculations, the financial sector has destroyed $8 worth of wealth for every dollar it earned over the last 5 years. His estimate includes the wealth-destroying impact of the subprime mortgage crisis and other epic Wall Street blunders.

The free market might not be as generous with bankers as the current system of government bailouts. If financial firms were allowed to fail, Leopold notes, bankers who drove their own firms out of business wouldn’t get paid. However, under the current “too big to fail” rules bad decisions lead to taxpayer rescues, not unemployment. So, the bonus checks keep rolling in.

Social Security switcheroo

James Ridgeway of Mother Jones predicts that Obama is gearing up to cut Social Security:

Having “retooled’’ his Presidency for a more open accommodation of the center right, Obama will soon be overseeing the battle to launch a dismantling of the Social Security system. [...] Without entirely destroying the popular program, he will support cuts that go beyond anything that should rightly happen during a Democratic administration.

Ironically, Ridgeway notes, our current Democratic president is to the right of many of yesterdays conservative Republicans. The legendary arch conservative Sen. Robert A. Taft (R-OH) was a staunch defender of Social Security. Republican President Dwight Eisenhower spearheaded the largest expansion of Social Security in the largest expansion of benefits in the history of the program.

Michelle Obama and Wal-Mart

Michelle Obama has enlisted the world’s largest corporation (and largest grocer) in her Let’s Move! campaign against childhood obesity. George Warner of Campus Progress takes a closer look at the skewed economics behind the “Nutrition Charter” signed by Wal-Mart last week. Amongst other things, Wal-Mart pledged to cut added sugar in its products by 10% by 2015; make healthy food more affordable; and develop a “nutrition seal” to alert shoppers to ostensibly healthier foods.

Yet, Warner notes that Wal-Mart is contributing to ill-health by employing a massive workforce at less than a living wage. Even if Wal-Mart follows through on its relatively modest pledges to promote healthy eating, it continues to put its own workforce at risk of ill health simply by paying them poverty-level wages. Studies show that for every job a new Wal-Mart store creates, it destroys three existing jobs, which paid an average of 18% more.

Poverty is one of the strongest predictors of obesity and poor diet.

Beck vs. Piven, Round 2

Last week, the Audit covered a bizarre right wing trend of demonizing 78-year-old CUNY political science prof Frances Fox Piven for an article she wrote in 1966. Glenn Beck and other leading lights of the right claim that Piven’s 45-year-old article is being used right now by liberal elites in their sinister plot to violently overthrow capitalism.

Piven is receiving death threats by email; and death threats are popping up on Glenn Beck’s website, including: “Snap her little chicken neck. This pinko filth needs a long dirt nap.”; “Somebody tell Frances I have 5,000 rounds ready.”, and “We should blow up Piven’s office and home.”

In actuality, Piven’s article argued that everyone who was eligible for welfare should sign up for benefits in order to expose the structural flaws in the system. Say what you will about the plan, it was non-violent. It involved a lot of paperwork. Far from overthrowing the federal government, Piven sought to usher in a federal guaranteed federal income as an alternative to the patchwork of state and local welfare agencies doling out benefits.

Matthew Rothschild reports in the Progressive that the Center for Constitutional Rights has sent a letter to Roger Ailes of Fox News asking him to reign in the anti-Piven demagoguery.

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: Wall Street Destroyed $8 for Every $1 Earned

 

by Lindsay Beyerstein, Media Consortium blogger

Tonight, President Barack Obama will deliver his State of the Union address. A major theme of the speech will be jobs and the economy. Let’s hope the president spares a few minutes for Wall Street reforms that might prevent a repeat of the economic collapse that we’re slowly starting to recover from.

As Kai Wright points out in ColorLines, the State of the Union is the unofficial kickoff of the 2012 election season:

The still churning foreclosures and mounding debt in black and brown neighborhoods don’t suggest a stabilized economy anywhere except Wall Street, but let’s set that familiar fight to the side for now. The point is that whether we’re talking about creating jobs or seating district court judges, the time for making policy is gone. Starting tomorrow night, it’s all talk until we vote next.

Amy Dean of Working In These Times shares Wright’s skepticism. With the Republicans in control of the House and the Democrats hanging on to the Senate, we’re looking at a legislative stalemate until the next election. Dean argues that activists should use this lull in the action to refocus their organizing at the grassroots level.

Wall Street destroyed $8 for every $1 it earned

In AlterNet, Les Leopold asks why bankers are earning such huge bonuses while the financial system is in disarray. According to standard economic theory, your compensation reflects the value of your work. Yet, according to Leopold’s back-of-the-envelope calculations, the financial sector has destroyed $8 worth of wealth for every dollar it earned over the last 5 years. His estimate includes the wealth-destroying impact of the subprime mortgage crisis and other epic Wall Street blunders.

The free market might not be as generous with bankers as the current system of government bailouts. If financial firms were allowed to fail, Leopold notes, bankers who drove their own firms out of business wouldn’t get paid. However, under the current “too big to fail” rules bad decisions lead to taxpayer rescues, not unemployment. So, the bonus checks keep rolling in.

Social Security switcheroo

James Ridgeway of Mother Jones predicts that Obama is gearing up to cut Social Security:

Having “retooled’’ his Presidency for a more open accommodation of the center right, Obama will soon be overseeing the battle to launch a dismantling of the Social Security system. [...] Without entirely destroying the popular program, he will support cuts that go beyond anything that should rightly happen during a Democratic administration.

Ironically, Ridgeway notes, our current Democratic president is to the right of many of yesterdays conservative Republicans. The legendary arch conservative Sen. Robert A. Taft (R-OH) was a staunch defender of Social Security. Republican President Dwight Eisenhower spearheaded the largest expansion of Social Security in the largest expansion of benefits in the history of the program.

Michelle Obama and Wal-Mart

Michelle Obama has enlisted the world’s largest corporation (and largest grocer) in her Let’s Move! campaign against childhood obesity. George Warner of Campus Progress takes a closer look at the skewed economics behind the “Nutrition Charter” signed by Wal-Mart last week. Amongst other things, Wal-Mart pledged to cut added sugar in its products by 10% by 2015; make healthy food more affordable; and develop a “nutrition seal” to alert shoppers to ostensibly healthier foods.

Yet, Warner notes that Wal-Mart is contributing to ill-health by employing a massive workforce at less than a living wage. Even if Wal-Mart follows through on its relatively modest pledges to promote healthy eating, it continues to put its own workforce at risk of ill health simply by paying them poverty-level wages. Studies show that for every job a new Wal-Mart store creates, it destroys three existing jobs, which paid an average of 18% more.

Poverty is one of the strongest predictors of obesity and poor diet.

Beck vs. Piven, Round 2

Last week, the Audit covered a bizarre right wing trend of demonizing 78-year-old CUNY political science prof Frances Fox Piven for an article she wrote in 1966. Glenn Beck and other leading lights of the right claim that Piven’s 45-year-old article is being used right now by liberal elites in their sinister plot to violently overthrow capitalism.

Piven is receiving death threats by email; and death threats are popping up on Glenn Beck’s website, including: “Snap her little chicken neck. This pinko filth needs a long dirt nap.”; “Somebody tell Frances I have 5,000 rounds ready.”, and “We should blow up Piven’s office and home.”

In actuality, Piven’s article argued that everyone who was eligible for welfare should sign up for benefits in order to expose the structural flaws in the system. Say what you will about the plan, it was non-violent. It involved a lot of paperwork. Far from overthrowing the federal government, Piven sought to usher in a federal guaranteed federal income as an alternative to the patchwork of state and local welfare agencies doling out benefits.

Matthew Rothschild reports in the Progressive that the Center for Constitutional Rights has sent a letter to Roger Ailes of Fox News asking him to reign in the anti-Piven demagoguery.

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 Pulse: On Health Care Repeal, House GOP Full of Sound and Fury

By Lindsay Beyerstein, Media Consortium blogger

House Republicans will hold a symbolic vote to overturn health care reform on January 12. The bill, which would repeal the Affordable Care Act (ACA) and set the nation’s health care laws back to the way they were last March, has no chance of becoming law. The GOP controls the House, but Democrats control the Senate. Senate Majority Leader Harry Reid announced that the Senate Democrats will block the bill.

Suzy Khimm of Mother Jones reports that the 2-page House bill carries no price tag. The Congressional Budget Office estimates that the ACA would save $143 billion dollars over the next decade. The GOP repeal bill contains no alternative plan. So, repealing the ACA would be tantamount to adding $143 billion to the deficit. So much for fiscal responsibility.

Why are the Republicans rushing to vote on a doomed bill without even bothering to hold hearings, or formulate a counter-proposal for the Congressional Budget Office to score? Kevin Drum of Mother Jones hazards a guess:

[Speaker John] Boehner [(R-OH)] knows two things: (a) he has to schedule a repeal vote because the tea partiers will go into open revolt if he doesn’t, and (b) it’s a dead letter with nothing more than symbolic value. So he’s scheduling a quick vote with no hearings and no CBO scoring just so he can say he’s done it, after which he can move on to other business he actually cares about.

An opportunity?

Steve Benen of the Washington Monthly argues that all this political theater around repealing the Affordable Care Act is an opportunity for Democrats to remind the public about all the popular aspects of the bill that the GOP is trying to strip away.

Last weekend several key provisions of the ACA took effect, including help for middle income seniors who are running up against the prescription drug “donut hole.” Until last Saturday, their drugs were covered up to a relatively low threshold, then they were on their own until they spent enough on prescriptions for the catastrophic coverage to kick in again. Those seniors will be reluctant to give up their brand new 50% discount on drugs in the donut hole.

Another crack at turning eggs into persons

A Colorado ballot initiative to bestow full human rights on fertilized ova was resoundingly defeated for the second time in the last midterm elections. Attempts to reclassify fertilized ova as people are an attempt to ban abortion, stem cell research, and some forms of birth control. Patrick Caldwell of the American Independent reports that new egg-as-person campaigns are stirring in other states where activists hope to take advantage of new Republican majorities.

Personhood USA, the group behind the failed Colorado ballot initiatives, claims that there is “action” (of some description) on personhood legislation in 30 states. Caldwell says Florida may be the next battleground. Personhood USA needs 676,000 signatures to get their proposed constitutional amendment on the ballot. Right now, they have zero, but they promise a “big push” in 2011.

Ronald McDonald = Joe the Camel

In AlterNet, Kelle Louaillier calls for more regulation of fast food industry advertising to children. New research shows that children are being exposed to significantly more fast food ads than they were just a few years ago. Other studies demonstrate that children give higher marks to food products when they are paired with a cartoon character. Louaillier writes of her organization’s campaign to prevent fast food companies from using cartoons to market fast food to kids:

For our part, my organization launched a campaign in March to convince McDonald’s to retire Ronald McDonald, its iconic advertising character, and the suite of predatory marketing practices of which the clown is at the heart. A study we commissioned by Lake Research Partners found that more than half of those polled say they “favor stopping corporations from using cartoons and other children’s characters to sell harmful products to children.”

Local elected officials are joining the cause, too. Los Angeles recently voted to make permanent a ban on the construction of new fast food restaurants in parts of the city. San Francisco has limited toy giveaway promotions to children’s meals that meet basic health criteria. The idea is spreading to other cities.

2011 trendspotting: Baby food

The hot new snack trend for 2011 is mush, as Bonnie Azab Powell reports in Grist. In an attempt to burnish its portfolio of “healthier” snack options for kids Tropicana (a PepsiCo company) is introducing a new line of pureed fruit and vegetable slurries. The products, sold under the brand name Tropolis, feature ground up fruits and veggies, vitamin C, and fiber in a portable plastic pouch. These “drinkified snacks” or “snackified drinks” will be priced at $2.49 to $3.49 for a four-pack, making them more expensive than fresh fruit.

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.

 

 

Weekly Pulse: On Health Care Repeal, House GOP Full of Sound and Fury

By Lindsay Beyerstein, Media Consortium blogger

House Republicans will hold a symbolic vote to overturn health care reform on January 12. The bill, which would repeal the Affordable Care Act (ACA) and set the nation’s health care laws back to the way they were last March, has no chance of becoming law. The GOP controls the House, but Democrats control the Senate. Senate Majority Leader Harry Reid announced that the Senate Democrats will block the bill.

Suzy Khimm of Mother Jones reports that the 2-page House bill carries no price tag. The Congressional Budget Office estimates that the ACA would save $143 billion dollars over the next decade. The GOP repeal bill contains no alternative plan. So, repealing the ACA would be tantamount to adding $143 billion to the deficit. So much for fiscal responsibility.

Why are the Republicans rushing to vote on a doomed bill without even bothering to hold hearings, or formulate a counter-proposal for the Congressional Budget Office to score? Kevin Drum of Mother Jones hazards a guess:

[Speaker John] Boehner [(R-OH)] knows two things: (a) he has to schedule a repeal vote because the tea partiers will go into open revolt if he doesn’t, and (b) it’s a dead letter with nothing more than symbolic value. So he’s scheduling a quick vote with no hearings and no CBO scoring just so he can say he’s done it, after which he can move on to other business he actually cares about.

An opportunity?

Steve Benen of the Washington Monthly argues that all this political theater around repealing the Affordable Care Act is an opportunity for Democrats to remind the public about all the popular aspects of the bill that the GOP is trying to strip away.

Last weekend several key provisions of the ACA took effect, including help for middle income seniors who are running up against the prescription drug “donut hole.” Until last Saturday, their drugs were covered up to a relatively low threshold, then they were on their own until they spent enough on prescriptions for the catastrophic coverage to kick in again. Those seniors will be reluctant to give up their brand new 50% discount on drugs in the donut hole.

Another crack at turning eggs into persons

A Colorado ballot initiative to bestow full human rights on fertilized ova was resoundingly defeated for the second time in the last midterm elections. Attempts to reclassify fertilized ova as people are an attempt to ban abortion, stem cell research, and some forms of birth control. Patrick Caldwell of the American Independent reports that new egg-as-person campaigns are stirring in other states where activists hope to take advantage of new Republican majorities.

Personhood USA, the group behind the failed Colorado ballot initiatives, claims that there is “action” (of some description) on personhood legislation in 30 states. Caldwell says Florida may be the next battleground. Personhood USA needs 676,000 signatures to get their proposed constitutional amendment on the ballot. Right now, they have zero, but they promise a “big push” in 2011.

Ronald McDonald = Joe the Camel

In AlterNet, Kelle Louaillier calls for more regulation of fast food industry advertising to children. New research shows that children are being exposed to significantly more fast food ads than they were just a few years ago. Other studies demonstrate that children give higher marks to food products when they are paired with a cartoon character. Louaillier writes of her organization’s campaign to prevent fast food companies from using cartoons to market fast food to kids:

For our part, my organization launched a campaign in March to convince McDonald’s to retire Ronald McDonald, its iconic advertising character, and the suite of predatory marketing practices of which the clown is at the heart. A study we commissioned by Lake Research Partners found that more than half of those polled say they “favor stopping corporations from using cartoons and other children’s characters to sell harmful products to children.”

Local elected officials are joining the cause, too. Los Angeles recently voted to make permanent a ban on the construction of new fast food restaurants in parts of the city. San Francisco has limited toy giveaway promotions to children’s meals that meet basic health criteria. The idea is spreading to other cities.

2011 trendspotting: Baby food

The hot new snack trend for 2011 is mush, as Bonnie Azab Powell reports in Grist. In an attempt to burnish its portfolio of “healthier” snack options for kids Tropicana (a PepsiCo company) is introducing a new line of pureed fruit and vegetable slurries. The products, sold under the brand name Tropolis, feature ground up fruits and veggies, vitamin C, and fiber in a portable plastic pouch. These “drinkified snacks” or “snackified drinks” will be priced at $2.49 to $3.49 for a four-pack, making them more expensive than fresh fruit.

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.

 

 

Weekly Pulse: On Health Care Repeal, House GOP Full of Sound and Fury

By Lindsay Beyerstein, Media Consortium blogger

House Republicans will hold a symbolic vote to overturn health care reform on January 12. The bill, which would repeal the Affordable Care Act (ACA) and set the nation’s health care laws back to the way they were last March, has no chance of becoming law. The GOP controls the House, but Democrats control the Senate. Senate Majority Leader Harry Reid announced that the Senate Democrats will block the bill.

Suzy Khimm of Mother Jones reports that the 2-page House bill carries no price tag. The Congressional Budget Office estimates that the ACA would save $143 billion dollars over the next decade. The GOP repeal bill contains no alternative plan. So, repealing the ACA would be tantamount to adding $143 billion to the deficit. So much for fiscal responsibility.

Why are the Republicans rushing to vote on a doomed bill without even bothering to hold hearings, or formulate a counter-proposal for the Congressional Budget Office to score? Kevin Drum of Mother Jones hazards a guess:

[Speaker John] Boehner [(R-OH)] knows two things: (a) he has to schedule a repeal vote because the tea partiers will go into open revolt if he doesn’t, and (b) it’s a dead letter with nothing more than symbolic value. So he’s scheduling a quick vote with no hearings and no CBO scoring just so he can say he’s done it, after which he can move on to other business he actually cares about.

An opportunity?

Steve Benen of the Washington Monthly argues that all this political theater around repealing the Affordable Care Act is an opportunity for Democrats to remind the public about all the popular aspects of the bill that the GOP is trying to strip away.

Last weekend several key provisions of the ACA took effect, including help for middle income seniors who are running up against the prescription drug “donut hole.” Until last Saturday, their drugs were covered up to a relatively low threshold, then they were on their own until they spent enough on prescriptions for the catastrophic coverage to kick in again. Those seniors will be reluctant to give up their brand new 50% discount on drugs in the donut hole.

Another crack at turning eggs into persons

A Colorado ballot initiative to bestow full human rights on fertilized ova was resoundingly defeated for the second time in the last midterm elections. Attempts to reclassify fertilized ova as people are an attempt to ban abortion, stem cell research, and some forms of birth control. Patrick Caldwell of the American Independent reports that new egg-as-person campaigns are stirring in other states where activists hope to take advantage of new Republican majorities.

Personhood USA, the group behind the failed Colorado ballot initiatives, claims that there is “action” (of some description) on personhood legislation in 30 states. Caldwell says Florida may be the next battleground. Personhood USA needs 676,000 signatures to get their proposed constitutional amendment on the ballot. Right now, they have zero, but they promise a “big push” in 2011.

Ronald McDonald = Joe the Camel

In AlterNet, Kelle Louaillier calls for more regulation of fast food industry advertising to children. New research shows that children are being exposed to significantly more fast food ads than they were just a few years ago. Other studies demonstrate that children give higher marks to food products when they are paired with a cartoon character. Louaillier writes of her organization’s campaign to prevent fast food companies from using cartoons to market fast food to kids:

For our part, my organization launched a campaign in March to convince McDonald’s to retire Ronald McDonald, its iconic advertising character, and the suite of predatory marketing practices of which the clown is at the heart. A study we commissioned by Lake Research Partners found that more than half of those polled say they “favor stopping corporations from using cartoons and other children’s characters to sell harmful products to children.”

Local elected officials are joining the cause, too. Los Angeles recently voted to make permanent a ban on the construction of new fast food restaurants in parts of the city. San Francisco has limited toy giveaway promotions to children’s meals that meet basic health criteria. The idea is spreading to other cities.

2011 trendspotting: Baby food

The hot new snack trend for 2011 is mush, as Bonnie Azab Powell reports in Grist. In an attempt to burnish its portfolio of “healthier” snack options for kids Tropicana (a PepsiCo company) is introducing a new line of pureed fruit and vegetable slurries. The products, sold under the brand name Tropolis, feature ground up fruits and veggies, vitamin C, and fiber in a portable plastic pouch. These “drinkified snacks” or “snackified drinks” will be priced at $2.49 to $3.49 for a four-pack, making them more expensive than fresh fruit.

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.

 

 

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