Tricounty DFA Update: Wednesday Meeting Reminder, GOTV, More
"This is bad policy and bad politics. Cuts like these are the worst possible way to reduce the deficit. They protect the status quo for the richest 1 percent while the 99 percent are expected to sacrifice vital healthcare that they need to survive in tough economic times like these -- and they'll hamstring Democrats running for reelection in 2012.
"We've been down this road before. Republicans and some Democrats have been pushing plans to destroy Medicare and Social Security for months. We beat them then and we can beat them now with an overwhelming show of grassroots opposition to any plan that cuts Medicare.
"Join me and tell Washington that this deal is Dead On Arrival."
Pledge to oppose any candidate -- Republican or Democrat - who votes for a plan that cuts Medicare and Medicaid benefits for the 99 percent.
"Medicare is the only universal healthcare program that exists in the United States of America. No one who supports moving back the age of eligibility can possibly be considered an advocate for universal health insurance.
"In fact, if that happens, the legacy of the Democrats for the past four years will have been to do far more harm to the healthcare system than good.
"By raising the age of eligibility from 65 to 67, hard working Americans who are in their 50's or 60's, and cannot afford insurance under the current system will have to wait two additional years before Medicare kicks in. They would be forced to stay in the private healthcare system - if they can afford it."
Labels: Democracy For America, Democracy For The Greater Glens Falls Area, DFA, Glens Falls, Glens Falls DFA Facebook page, Howard Dean, Jim Dean, Occupy Wall Street, Rockhill Bakehouse Cafe
Tricounty DFA Update: Gov. Dean On Afghanistan, NY-26, Gibson votes, moreKathy
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2. Reminder To Sign Up WIth Us At DFA-Link
*To repeal a section in the 2010 health care bill providing funding for the construction of school-based health centers.
*He voted for the No Taxpayer Funding for Abortion Act - which would prohibit federal funds from being used for abortions, except in the cases of rape, incest or danger to the woman's life, and to bar most abortion expense deductions and tax credits for healthcare policies that cover abortions.
*He also voted to defeat a Democratic sponsored measure to bar the IRS from accessing medical records to establish whether rape or incest occurred, in connection with a provision in HR3 making abortion costs not tax deductible except in cases of rape or incest
*And to require the Interior Department to sell oil and gas leases in the Gulf of Mexico and off the coast of Virginia.
*Gibson also voted against a Democratic sponsored measure for a direct vote to end $30 billion in subsidies and tax breaks for the oil industry and use the money for tax breaks to industries to create jobs.
This all speaks for itself. As I noted before, we need volunteers to help put information on www.chrisgibsonwatch.com
Labels: Chris Gibson Watch, Democracy For The Greater Glens Falls Area, DFA, Howard Dean, Kathy Hochul, NY-26, Rockhill Bakehouse Cafe
Tricounty DFA Update: Meeting Reminder, Murphy Letter, Democrat's Distress
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Labels: Democracy For America, Democracy For The Greater Glens Falls Area, DFA, financial reform, healthcare reform, Howard Dean, Scott Murphy
Tricounty DFA Update: Seventh Anniversary Meeting Wednesday! Special Showing, Capitalism, A Love Story
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By Simon Johnson and James Kwak
The Washington Post
Sunday, April 4, 2010; B03
In late February 1902, J.P. Morgan, the leading financier of his day, went to the White House to meet with President Theodore Roosevelt and Attorney General Philander Knox. The government had just announced an antitrust suit -- the first of its kind -- against Morgan's recently formed railroad monopoly, Northern Securities, and this was a tense moment for the stock market. Morgan argued strongly that his industrial trusts were essential to American prosperity and competitiveness.
The banker wanted a deal. "If we have done anything wrong, send your man to my man and they can fix it up," he offered. But the president was blunt: "That can't be done." And Knox succinctly summarized Roosevelt's philosophy. "We don't want to fix it up," he told Morgan, "we want to stop it."
Just over a century later, on March 27, 2009, 13 bankers were summoned to the White House. The global financial system was verging on collapse, in no small measure because of the bankers' concentrated power and their manifest inability to manage the risks of their "financial innovation." Banking had to be rescued -- no modern economy can function without credit, of course -- and only the Obama administration had the power to save the day.
But instead of specific new regulations or changes in the way they operate -- or even any constraints on their power -- what did these 13 bankers find waiting for them? On this day and in the months that followed, the administration provided generous expressions of unconditional financial and moral support, both explicit and implicit, along with gentle and nonbinding admonitions.
The headline quote from President Obama sounded tough: "My administration is the only thing between you and the pitchforks," he told the meeting. But the reality was as mild as it could be: All 13 bankers, no matter how discredited, kept their jobs, their salaries, their bonuses, their pensions, their staff and, most remarkable given the near-complete breakdown of governance, even their boards of directors. Our leading bankers were saved by the generosity and magnanimity of our president.
Since that meeting, the country has seen no discernible changes in the financial management and incentive systems that for 30 years have given Wall Street the benefits of the upside and Main Street the costs of the downside. And politically, our financial titans have bitterly opposed the mild reforms that the Obama administration eventually proposed. Even Citi and Bank of America, which essentially spent 2009 as wards of the state, have engaged in egregious lobbying.
There is no way that Teddy Roosevelt would have stood for this. He saw finance and economics through the lens of political power. In his book, it did not matter how important you were, or claimed to be, to the economy. If you were too powerful, and if your actions were hurting other people in the economy, Roosevelt wanted to take you on -- and he instructed his lawyers accordingly.
Roosevelt did not launch the antitrust movement by gently tugging on some low-hanging fruit. He took on J.P. Morgan, the central figure in the burgeoning American financial system, and he won (though just barely, with the Supreme Court voting 5 to 4 to dissolve Northern Securities). And after many twists and turns, the new consensus regarding acceptable business practices led to the breakup of John D. Rockefeller's Standard Oil -- arguably the most powerful company in U.S. history to that date.
Of course, Roosevelt did have the 1890 Sherman Antitrust Act on his side. But before 1902, that law had never been used against an industrial trust, and precedent suggested that there was no legal basis for reining in Morgan's ventures. Roosevelt's audacious move seemed against the odds, and it was very much against the advice of top figures in his Republican Party.
In the spring of 2009, Obama and his senior advisers did not seem terribly troubled by the dangerous concentration of power, wealth and hubris on Wall Street. The president thought it reasonable to find a way forward through amicable accommodation, assuming that Big Finance really could change. Yet, in memoirs and public statements, the bankers repeatedly submit their defense: The system -- the mechanics and incentives of Wall Street -- made them do it. Unfortunately, Wall Street and its intimate connections to Washington have not become any safer for the American economy since this crisis began.
In fact, the latest boom-bust-bailout cycle probably worsened matters. We can argue whether, before September 2008, the people running huge financial firms really thought they were "too big to fail." Lehman, after all, did go bankrupt; Morgan Stanley and Goldman Sachs were rescued at the eleventh hour. But today, who thinks Goldman could fail?
In the moment of most intense crisis, Goldman became a bank holding company, subject to the supervision of the Federal Reserve and able to borrow from the Fed's official "discount window" -- effectively gaining government support. Yet today the firm is also allowed to carry out essentially the same activities (including securities and foreign-exchange trading, as well as real-estate-related transactions) as it did prior to the meltdown of 2008, when there was supposedly no government backing.
If you were exempt from paying speeding tickets, no matter how fast you drove, what would you do? Perhaps, immediately after observing a horrific crash or having a near-death experience, you would be more careful. But soon you would feel the need to get somewhere quickly. And you might even think that your special legal status merely reflected your advanced skills. How long until the next big accident?
Since Democrats lost the special Senate election in Massachusetts in January, the president has shown some new fire. In a major potential course correction, he proposed the "Volcker Rule," named after former Fed chairman and current Obama adviser Paul Volcker, which would constrain the risk-taking and the size of the largest U.S. banks. The move blind-sided Wall Street. In the sound bite of Jan. 21, Obama sounded just like Teddy: "If these folks want a fight," he said, "it's a fight I'm ready to have."
It is now time for that fight. Senate Democrats have proposed a financial overhaul that includes the Volcker Rule, and White House spokesman Robert Gibbs said Tuesday that passing regulatory reform by late May is realistic. But to make progress in this legislative cycle, the president needs to go all in, as he did with health-care reform. The potential political message here is powerful: If opponents of reform think they are "too big to fail," then we will prove them wrong.
It doesn't help that Wall Street has vast amounts of cash to spend on lobbying and political ads. Yet, if framed correctly, the reform message cuts across the political spectrum. If there is one thing that the left and the right agree upon, it is that a "get out of jail free" card distorts the free market. Massive banks have access to cheaper financing because the credit markets understand that the government stands behind them. This is unfair competition, pure and simple.
Will the administration stand up and fight now, before we have another crisis? Surely this is what Theodore Roosevelt would have done. He liked to act preemptively; when he saw excessive power, he took it on, creating his own moments of political opportunity.
Of course, there is always the other Roosevelt. When FDR took power in March 1933, he took aim at the banks. As historian Arthur Schlesinger wrote in "The Coming of the New Deal" -- "No business was more proud and powerful than the bankers; none was more persuaded of its own rectitude; none more accustomed to respectful consultation by government officials. To be attacked as antisocial was bewildering; to be excluded from the formation of public policy was beyond endurance."
By the mid-1930s, Franklin Roosevelt had become skeptical of powerful financiers, but he was only able to translate those feelings into policy after a major global depression. Obama shouldn't wait for another one before pushing for the changes that matter.
Simon Johnson is a professor of economics at the MIT Sloan School of Management and a senior fellow at the Peterson Institute for International Economics. James Kwak is a law student at Yale University. They are the co-authors of "13 Bankers: The Wall Street Takeover and the Next Financial Meltdown."
Labels: Democracy For America, Democracy For Saratoga Springs, Democracy For The Greater Glens Falls Area, DFA, healthcare reform, Howard Dean, Larry Dudley, Rockhill Bakehouse Cafe, Scott Murphy
Tricounty DFA Update: Final Healthcare Vote Action Alert
Hello Everyone;
Republican Sex Scandals Dwarf Those of Democrats.
Republican Sex Offenders.
And just for good measure, the endless Bush Scandals List.
Labels: Democracy For America, Democracy For The Greater Glens Falls Area, DFA, healthcare reform, Howard Dean, Rockhill Bakehouse Cafe, Scott Murphy
Tricounty DFA Update: Dr. Dean On Meet The Press Sunday, Right Back Where We Started
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Ed Kilgore has a very perceptive analysis in The New Republic about the underlying (and largely unexamined) ideological and strategic differences among progressives that are at least partially driving the rift over the health care bill. He argues -- correctly -- that the current debate "displays a couple of pretty important potential fault lines within the American center-left" that have manifested in other disputes as well. That was the principal point of this much-maligned Daily Kos post observing that many (but not all) of the progressive bloggers most vehemently demanding passage of the health care bill also supported the Iraq War. As the author of that post (Jake McIntyre) explicitly said, his intent wasn't to suggest that those individuals shouldn't be listened to because of their Iraq position six years ago (that would be an invalid and unfair claim), but simply that -- as Kilgore says -- there are underlying and significant differences in strategic and ideological outlook driving the health care debate that have been present for some time but are typically ignored.
Shared contempt for the Bush administration (at least once Bush and the Iraq War became discredited) largely obscured these differences when Bush was in office. The desire to undermine the Bush GOP and dislodge that movement from power subsumed all other objectives and united people with vastly different political outlooks and agendas. There is still a shared revulsion towards the Palin/Limbaugh Right, but that faction is too marginalized and impotent to serve the same function. With the unifying force of Bush/Cheney gone, the divisions Kilgore describes are now vibrant and increasingly potent. In addition to health care and Iraq, roughly the same progressive fault lines are seen over the bank bailout, escalation in Afghanistan, Obama's economic team, tolerance for Obama's embrace of Bush/Cheney civil liberties polices, and even the reaction to Matt Taibbi's recent Rolling Stone article on Obama's subservience to Wall Street.
There are many reasons for the progressive division on the health care bill. There are differences over the narrow question of health care policy, with some believing the bill does more harm than good just on that ground alone. Some of it has to do with broader questions of political power: if progressives always announce that they are willing to accept whatever miniscule benefits are tossed at them (on the ground that it's better than nothing) and unfailingly support Democratic initiatives (on the ground that the GOP is worse), then they will (and should) always be ignored when it comes time to negotiate; nobody takes seriously the demands of those who announce they'll go along with whatever the final outcome is. But the most significant underlying division identified by Kilgore is the divergent views over the rapidly growing corporatism that defines our political system.
Kilgore doesn't call it "corporatism" -- the virtually complete dominance of government by large corporations, even a merger between the two -- but that's what he's talking about. He puts it in slightly more palatable terms:
To put it simply, and perhaps over-simply, on a variety of fronts (most notably financial restructuring and health care reform, but arguably on climate change as well), the Obama administration has chosen the strategy of deploying regulated and subsidized private sector entities to achieve progressive policy results. This approach was a hallmark of the so-called Clintonian, "New Democrat" movement, and the broader international movement sometimes referred to as "the Third Way," which often defended the use of private means for public ends.
As I've written for quite some time, I've honestly never understood how anyone could think that Obama was going to bring about some sort of "new" political approach or governing method when, as Kilgore notes, what he practices -- politically and substantively -- is the Third Way, DLC, triangulating corporatism of the Clinton era, just re-packaged with some sleeker and more updated marketing. At its core, it seeks to use government power not to regulate, but to benefit and even merge with, large corporate interests, both for political power (those corporate interests, in return, then fund the Party and its campaigns) and for policy ends. It's devoted to empowering large corporations, letting them always get what they want from government, and extracting, at best, some very modest concessions in return. This is the same point Taibbi made about the Democratic Party in the context of economic policy:
The significance of all of these appointments isn't that the Wall Street types are now in a position to provide direct favors to their former employers. It's that, with one or two exceptions, they collectively offer a microcosm of what the Democratic Party has come to stand for in the 21st century. Virtually all of the Rubinites brought in to manage the economy under Obama share the same fundamental political philosophy carefully articulated for years by the Hamilton Project: Expand the safety net to protect the poor, but let Wall Street do whatever it wants.
One finds this in far more than just economic policy, and it's about more than just letting corporations do what they want. It's about affirmatively harnessing government power in order to benefit and strengthen those corporate interests and even merging government and the private sector. In the intelligence and surveillance realms, for instance, the line between government agencies and private corporations barely exists. Military policy is carried out almost as much by private contractors as by our state's armed forces. Corporate executives and lobbyists can shuffle between the public and private sectors so seamlessly because the divisions have been so eroded. Our laws are written not by elected representatives but, literally, by the largest and richest corporations. At the level of the most concentrated power, large corporate interests and government actions are basically inseparable.
The health care bill is one of the most flagrant advancements of this corporatism yet, as it bizarrely forces millions of people to buy extremely inadequate products from the private health insurance industry -- regardless of whether they want it or, worse, whether they can afford it (even with some subsidies). In other words, it uses the power of government, the force of law, to give the greatest gift imaginable to this industry -- tens of millions of coerced customers, many of whom will be truly burdened by having to turn their money over to these corporations -- and is thus a truly extreme advancement of this corporatist model. It's undeniably true that the bill will also do some genuine good, as it will help many people who can't get coverage now to get it (though it will also severely burden many people with compelled, uncontrolled premiums and will potentially weaken coverage for millions as well). If one judges the bill purely from the narrow perspective of coverage, a rational and reasonable (though by no means conclusive) case can be made in its favor. But if one finds this creeping corporatism to be a truly disturbing and nefarious trend, then the bill will seem far less benign.
As I've noted before, this growing opposition to corporatism -- to the virtually absolute domination of our political process by large corporations -- is one of the many issues that transcend the trite left/right drama endlessly used as a distraction. The anger among both the left and right towards the bank bailout, and towards lobbyist influence in general, illustrates that. Kilgore says that anger among the left and right over corporatism is irreconcilable, and this is the point I think he has mostly wrong:
To put it more bluntly, on a widening range of issues, Obama's critics to the right say he's engineering a government takeover of the private sector, while his critics to the left accuse him of promoting a corporate takeover of the public sector. They can't both be right, of course, and these critics would take the country in completely different directions if given a chance. But the tactical convergence is there if they choose to pursue it.
This supposedly irreconcilable difference Kilgore identifies is more semantics than substance. It's certainly true that health care opponents on the left want more a expansive plan while opponents on the right want the opposite. But the objections over the mandate are largely identical -- it's a coerced gift to the private health insurance industry that underwrites the Democratic Party. The same was true over opposition to the bailout, objections to lobbying influence over Washington, and most of all, the growing anger that Washington serves the interests of financial elites at the expense of the working class.
Whether you call it "a government takeover of the private sector" or a "private sector takeover of government," it's the same thing: a merger of government power and corporate interests which benefits both of the merged entities (the party in power and the corporations) at everyone else's expense. Growing anger over that is rooted far more in an insider/outsider dichotomy over who controls Washington than it is in the standard conservative/liberal ideological splits from the 1990s. It's true that the people who are angry enough to attend tea parties are being exploited and misled by GOP operatives and right-wing polemicists, but many of their grievances about how Washington is ignoring their interests are valid, and the Democratic Party has no answers for them because it's dependent upon and supportive of that corporatist model. That's why they turn to Glenn Beck and Rush Limbaugh; what could a Democratic Party dependent upon corporate funding and subservient to its interests possibly have to say to populist anger?
Even if one grants the arguments made by proponents of the health care bill about increased coverage, what the bill does is reinforces and bolsters a radically corrupt and flawed insurance model and an even more corrupt and destructive model of "governing." It is a major step forward for the corporatist model, even a new innovation in propping it up. How one weighs those benefits and costs -- both in the health care debate and with regard to many of Obama's other policies -- depends largely upon how devoted one is to undermining and weakening this corporatist framework (as opposed to exploiting it for political gain and some policy aims). That's one of the primary underlying divisions Kilgore identifies, and he's right to call for greater examination and debate over the role it is playing.
Labels: Democracy For America, Democracy For The Greater Glens Falls Area, DFA, healthcare reform, Howard Dean

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