Friday Reads: Economic Anemia
Posted: October 24, 2014 Filed under: 2014 elections, Austerity, Barack Obama, Economic Develpment, Economy, Elections, Federal Budget, Federal Budget and Budget deficit, Federal Government Shutdown, income inequality, morning reads, Republican politics | Tags: uo 65 CommentsGood Morning!
Since I’m in the middle of revamping my course for Graduate Finance Students in International Finance and reviewing textbooks and the usual stuff, I thought I’d focus on the economy for the morning.
One of the most awful results of the Reagan years has been the creation of mainstream paranoia over policy using data evident from the scientific method, intellectuals and academics that spend years researching and learning theory and empirical evidence, and the idea that government can’t ameliorate issues through policy but is somehow a potential enemy of the governed.
This kind of paranoid drivel used to be the realm of militia types like Clive Bunday and John Birchers like the Koch Brothers and father. It had no place in mainstream discourse until Reagan started pumping up the idea that poor people game the government and the government games every one else. Its now spread to Christian extremists, the NRA, and most of the Republic Party.
Let me give you the latest example of someone who is possibly going to be a Senator from Iowa. Joni Ernst is doing the Sharon Angle thing of declaring any government issue she doesn’t like her potential enemy and any one supporting that view as a potential target of her nice little gun that she carries with her everywhere.
Joni Ernst, the Republican candidate for U.S. Senate in Iowa, said during an NRA event in 2012 that she would use a gun to defend herself from the government.
“I have a beautiful little Smith & Wesson, 9 millimeter, and it goes with me virtually everywhere,” Ernst said at the NRA and Iowa Firearms Coalition Second Amendment Rally in Searsboro, Iowa. “But I do believe in the right to carry, and I believe in the right to defend myself and my family — whether it’s from an intruder, or whether it’s from the government, should they decide that my rights are no longer important.”
Ernst made the remark a little more than a month after gunman James Holmes allegedly killed 12 people and injured 58 in a movie theater in Aurora, Colorado. Ernst’s campaign did not respond to The Huffington Post’s request for comment about the remark on Wednesday evening.
Earlier this year, Ernst released an ad in which she points a gun at the camera and vows to “unload” on Obamacare.
We’ve also experienced this massive attempt to rewrite secondary school textbooks and curricula to reflect the deeply held philosophical and religious views of these folks rather than theory or empirical evidence brought about by hundreds of years of research and scholarship. This also ignores primary documents that show just the opposite to be factual.
But, facts be damned, there’s children’s minds to warp. Biased ideas are not at the center of legitimate academic pursuit. Folks that follow agendas tend to live at the edges of universities and most departments are quite embarrassed by them. I spent time in a department where one research professor’s favorite pursuit was proving that iqs and brain sizes among varying races were the reason for underachieving groups in an economy. All DNA evidence shows that race is a social construct but this guy spent a life time trying to show the relationship between brain sizes of races and incomes and jobs. So, most time when you see folks that believe this stuff, they reside some where on the fringes. However, since the Reagan years, there’s been a major attempt by right wing religious zealots to teach propaganda and there’s been a rather significant increase in the level of ignorance on things from incoming freshmen.
This is happening even in economics where you would think that paranoia about “communism” would’ve gone away since the fall of the USSR. Not true, however. They prefer to fear imagined boogey men and to set up imagined fairy tale rescuers over doing policy that’s be proven effective in years of empirical study.
The standards’ authors are clearly fans of the free enterprise system, consistently emphasizing the advantage of American capitalism over other structures.
For example, the high school standards state that students should be able to “understand how the free enterprise system drives technological innovation and its application in the marketplace.” The middle school standards clearly promote free enterprise capitalism over other economic systems, saying that students should be able to “compare and contrast free enterprise, socialist, and communist economies in various contemporary societies, including the benefits of the U.S. free enterprise system.” Finally, the standards connect capitalism with the conservative ideal of limited government, asking students to be able to “explain why a free enterprise system of economics developed in the new nation, including minimal government intrusion, taxation, and property rights.”
It really takes very little time spent in economics to realize that political constructs are not economic constructs. For example, the United States economy was founded on Mercantilism which began with monopolies, charters, grants and largess of royalty and aristocracy. The concepts of Capitalism
and of Communism had the same roots and they were a lot more philosophical than ever real. Even, now, we have a modified market system. There has never EVER been a “free market” system or “communism” in an economic sense. Socialism is just one end of a modified market system and still relies heavily on private ownership of the majority of factors of production. Most facets of government policy are to make a market behave closer to a free market model because it can’t possibly d0 so under one factor, characteristic, or situation that exists. I mean really, who wants to leave the market for uranium to the free market? That’s just an extreme example.
The problem is that dogma has overtaken reality among folks that now find themselves in office. It’s bad for the country. It’s bad for business. It’s bad for nearly every one. The one thing that’s becoming abundantly clear since the Clinton Presidency and definitely during the Obama Presidency is that the Democratic Party is the party of Wall Street and Big Business. It’s not the Republicans. No where is this more evident than economic reports written by the private sector. Today’s Republicans scare the shit out of big business and finance. The last few battles to keep the federal government and the deficit funded has nearly caused market meltdowns twice. You also don’t see them complain about increasing the minimum wage or decreasing the current level of income equality. NO REALLY. This means Chris Christie is really going to have some ‘splaining to do over this statement.
Labor Secretary Tom Perez on Thursday panned New Jersey Gov. Chris Christie’s comments that he’s “tired” of the minimum wage debate.
“Chris Christie’s got his head in the sand if he’s getting tired about the minimum wage,” Perez said according to Bloomberg Politics.
President Barack Obama and Democrats have led the push to raise the federal minimum wage to $10.10, and the issue has made its way onto the campaign trail this year.
“Chris Christie needs to talk to his economists, who will tell him that 70 percent of GDP growth is consumption,” Perez said Thursday.
The criticism came just days after Christie said he was “tired of hearing about the minimum wage” at a U.S. Chamber of Commerce conference on Tuesday.
“I really am,” the Republican governor and potential 2016 hopeful said. “I don’t think there’s a mother or a father sitting around the kitchen table tonight in America saying, ‘You know, honey, if our son or daughter could just make a higher minimum wage, my God, all of our dreams would be realized.'”
“Is that what parents aspire to for our children?” Christie asked. “They aspire to a greater, growing America, where their children have the ability to make much more money and have much great success than they have, and that’s not about a higher minimum wage.”
Before the Labor secretary chimed in, the remark drew fire from other Democrats, and White House Press Secretary Josh Earnest even quipped during a briefing Wednesday that people living on a minimum wage are those who are really tired.
Christie also used his time at the podium to make a 2016 prediction.
“I am convinced that the next president of the United States is going to be a governor,” Christie said. “We’ve had this experiment of legislating .. and getting on-the-job training in the White House. It has not been pretty.”
So, this kind’ve talk is really making the economists of Wall Street and of huge corporations very nervous. They’re quite aware that today’s Republican Party is tanking the economy.
Even though Republicans depict themselves as the party for business and banks, it turns out that the GOP’s economic policy is detrimental to their bottom lines and continued existence; particularly rising costs and stagnant wages since the Bush-Republican Great Recession. What both bankers and retailers really want instead of tax cuts, deregulation, and more Republican austerity and budget cuts are better incomes for all Americans that will lead to increased consumer confidence and greater purchasing power to trigger higher business profits. What they have learned after thirty years of “trickle-down” is that the trillions of dollars taken by the 1%, especially since 2009, have failed miserably to stimulate the economy. Instead, they demand more buying by the masses that Wall Street firms and analysis of 65 of the nation’s top retailers claim will only happen with, as President Obama preaches, growing the economy from the middle-out.
For example, in a report last month titled Inequality and Consumption, Morgan Stanley economists said, “Despite the roughly $25 trillion increase in wealth since the recovery from the financial crisis began, consumer spending remains anemic. Top income earners have benefited from wealth increases but middle and low income consumers continue facing structural liquidity constraints and unimpressive wage growth. To lift all boats, further increases in residential wealth and accelerating wage growth are needed.” Republicans completely disagree and either resist consideration of raising the minimum wage or promote abolishing it altogether. According to the Republicans, increasing income inequality must continue and it is crucial that they convince the population that no wage is too low. It is a belief the Koch brothers espouse but it is rapidly losing favor in circles whose survival depends on a population of consumers.
Standard and Poor’s (S&P) rating agency concurred with Morgan Stanley’s economists in their August report, How Increasing Income Inequality Is Dampening U.S. Economic Growth, And Possible Ways To Change The Tide, and strongly advised the federal government to create “a path toward more sustainable growth, that in our view, will pull more Americans out of poverty and bolster the purchasing power of the middle class. A rising tide lifts all boats…but a lifeboat carrying a few, surrounded by many treading water, risks capsizing.” To “lift all boats,” S&P suggests a “high degree of rebalancing” that includes increased “spending in the areas of education, health care, and infrastructure to help control the income gap that, at its current level, threatens the stability of an economy still struggling to recover.” Contrary to wisdom of real economists concerned with America’s economic survival, Republicans across the country have been laser-focused on their austerity crusade to cut spending on education, infrastructure, and healthcare including the cruel heartlessness of refusing free Medicaid expansion under the Affordable Care Act.
Despite the call from both banks and businesses to increase the minimum wage and spending on essentials for a robust recovery, congressional Republicans have obstructed and outright blocked each and every attempt by the President and Democrats to stimulate the economy. Despite trailing every developed nation on Earth in infrastructure, Republicans consistently refuse the President’s calls to increase spending on desperately-needed infrastructure repairs including roads, bridges, public buildings, and sewers that numerous economists, including some highly respected conservatives, say is crucial for job-creation, increased consumer spending, and a vibrant recovery. Increased consumer confidence, and spending, is something all economists agree is for the good of the country’s economy but can only happen if incomes rise for the majority with higher wages and more well-paying jobs.
I’ve said this a million times but it’s true. If you have an economy that’s 70% reliant on consumer spending for growth and 99% of the population has stagnant to falling real income, you’re going to run into trouble. Especially since a huge part of that 99% spends high levels, all of, or beyond 
their income and wealth levels. Years and years of evidence has shown that consumers are the real job creators. No business hires workers if no one is buying their goods and services. Rich people–especially with some of the horrid changes we’ve had in the tax code during the Dubya years–are spending more and more of the income and wealth on gambling paper for paper profits. This does not create anything of value in a real economy but it sure creates asset bubbles and the potential for financial meltdowns. One has only to survey retailers to figure out the relationship between incomes of the middle and working classes and their bottom lines and their hiring plans.
Former Walmart U.S. CEO Bill Simon, whose company had seen consumer traffic drop for six straight quarters and same-store sales drop for five quarters, explained in July 2014 that “we’ve reached a point where it’s not getting any better but it’s not getting any worse—at least for the middle (class) and down.” Kip Tindell, CEO of the Container Store, put retailers’ feelings best when he said, “consistent with so many of our fellow retailers, we are experiencing a retail ‘funk.’” The culprit is obvious: low wage and income growth for the middle class. Median household income in 2013 stood 8 percentage points below its 2007 prerecession level.
The simple fact of the matter is that when households do not have money, retailers do not have customers. The failure of incomes to keep up with the growing cost of college, child care, and other middle-class staples leaves even less money for retail spending. A previous analysis by the Center for American Progress shows that this so-called “middle-class squeeze”—stagnant incomes and the growing cost of middle-class security—leaves the median married couple with two kids with $5,500 less to spend annually on food, clothes, and other essentials that retailers sell.
Or, as officials of J.C. Penney—whose sales fell 9 percent in 20136—put it when listing the risks to its stock value: “the moderate income consumer, which is our core customer, has been under economic pressure for the past several years.”
Moreover, retail spending—which includes spending on everything from clothing to groceries to dining out—has broad implications for the entire economy since it accounts for a large fraction of consumer spending, which itself makes up 70
percent of U.S. gross domestic product, or GDP.
Even Walmart is concerned even while not paying living wages, not providing good benefits, and not creating an environment where a worker feels secure about his/her future. Now the weird thing is that fringe economists are still overly scared about inflation and high taxes. These things, however, are not at the top of any one’s concerns that would be invited on any Fox News program. Here’s a headline from Forbes: “Want a Better Economy? History Says Vote Democrat!”. In 2012, a number of books evaluated the results of the economy under Democratic vs Republican administrations. The results are startling.
Senator Daniel Patrick Moynihan is attributed with saying “everyone is entitled to his own opinion, but not his own facts.“ So even though we may hold very strong opinions about parties and politics, it is worthwhile to look at historical facts. This book’s authors are to be commended for spending several years, and many thousands of student research assistant man-days, sorting out economic performance from the common viewpoint – and the broad theories upon which much policy has been based. Their compendium of economic facts is the most illuminating document on economic performance during different administrations, and policies, than anything previously published.
The authors looked at a range of economic metrics including inflation, unemployment, corporate profit growth, stock market performance, household income growth, economy (GDP) growth, months in recession and others. To their surprise (I had the opportunity to interview Mr. Goldfarb) they discovered that laissez faire policies had far less benefits than expected, and in fact produced almost universal negative economic outcomes for the nation!
From this book loaded with statistical fact tidbits and comparative charts, here are just a few that caused me to realize that my long-term love affair with Milton Friedman‘s writing and recommended policies in “Free to Choose” were grounded in a theory I long admired, but that simply have proven to be myths when applied!
- Personal disposable income has grown nearly 6 times more under Democratic presidents
- Gross Domestic Product (GDP) has grown 7 times more under Democratic presidents
- Corporate profits have grown over 16% more per year under Democratic presidents (they actually declined under Republicans by an average of 4.53%/year)
- Average annual compound return on the stock market has been 18 times greater under Democratic presidents (If you invested $100k for 40 years of Republican administrations you had $126k at the end, if you invested $100k for 40 years of Democrat administrations you had $3.9M at the end)
- Republican presidents added 2.5 times more to the national debt than Democratic presidents
- The two times the economy steered into the ditch (Great Depression and Great Recession) were during Republican, laissez faire administrations
The Obama economy is actually surprisingly good given that a large number of good economic policies have not been enacted due to Republican political kung fu.
It was no joke on Thursday when I asked Austan Goolsbee, a pretty fair amateur comic, to rattle of key economic indicators that are trending in very positive ways right now.
“Jobs created. Weekly U.I (jobless) claims. Unemployment rate. Auto Sales. Gas Prices,” said Goolsbee, former head of President Obama’s Council of Economic Advisers and a onetime winner of the annual “D.C.’s Funniest Celebrity” contest.And, yet, as a headline in Politico.com also noted Thursday, “Economic Anxiety Dominates 2014.” So what’s really and truly up? What explains the disconnect between seemingly very strong numbers and the lack of love for Obama and the Democrats?
“You can’t brag about the economy because people can’t feel it,” said Thomas Bowen, a Chicago-based Democratic political and policy consultant.
“I’m sure (some) Democrats have polled this: ‘The recovery isn’t working for you.’ That’s why they’re not running on the economy improving.
Not long after, I was driving past a state unemployment office along a rather somber commercial strip on Chicago’s Northwest Side. The parking lot was full. And then I mulled the folks I know working part-time involuntarily or sticking with jobs they don’t especially like out of fear of the limited alternatives.
“You’re talking about indicators in the last six months,” said Bowen. “But look at the start of the recession until today. We’re just getting out of the hole from jobs losses. And the jobs aren’t the same. They’re not higher paying construction jobs.” “Not all indicators equate with average folks,” said Anna Greenberg, a Washington-based Democratic pollster.
“Wages and salaries are stagnant,” she said. “Yes, the stock market is up and the jobless rate down. But the cost of living is up and you may not have more money.”
So, a lot of economists like me remain very confused. It’s not like there’s not support by people and businesses for good policy like infrastructure projects, improving the terms of student loans so more folks can access higher and continuing education, and a reasonable minimum wage. The cities and states that have raised the minimum wage are even those that are doing well among states. States that have raised their minimum wages have better job growth.
New data released by the Department of Labor shows that raising the minimum wage in some states does not appear to have had a negative impact on job growth, contrary to what critics said would happen.
In a report on Friday, the 13 states that raised their minimum wages on Jan. 1 have added jobs at a faster pace than those that did not. The data run counter to a Congressional Budget Office report in February that said raising the minimum wage to $10.10 an hour, as the White House supports, could cost as many as 500,000 jobs.
“In the 13 states that boosted their minimums at the beginning of the year, the number of jobs grew an average of 0.85 percent from January through June. The average for the other 37 states was 0.61 percent.
“Nine of the 13 states increased their minimum wages automatically in line with inflation: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington. Four more states — Connecticut, New Jersey, New York and Rhode Island — approved legislation mandating the increases.”
The AP notes: “[The] state-by-state hiring data, released Friday by the Labor Department, provides ammunition” to the camp in favor of raising the minimum wage.
“Economists who support a higher minimum say the figures are encouraging, though they acknowledge they don’t establish a cause and effect. There are many possible reasons hiring might accelerate in a particular state.
” ‘It raises serious questions about the claims that a raise in the minimum wage is a jobs disaster,’ said John Schmitt, a senior economist at the liberal Center for Economic and Policy Research. The job data ‘isn’t definitive,’ he added, but is ‘probably a reasonable first cut at what’s going on.’ “
So, it just appears that there’s a huge portion of the United States electorate and elected that would rather live in their dream world of imaginary beings and dogma than have their lives made better by using what we know and what we’ve learned.
What’s on your reading and blogging list today?
Saturday Reads: A li’l bit of This and That
Posted: July 19, 2014 Filed under: Economy, free market ideology, morning reads, Russia, Ukraine 31 CommentsGood Morning!
I thought I’d just try to put up a bunch of interesting articles that I’ve read recently, so I’m pretty sure there’s no theme here. I guess we’ll see as I meander into each of them.
Economics started out as the study of Political Economy. Many of its early thinkers were definitely more essayists than researchers using data and 
statistical methods to look for trends. The study of what we call frictions–or things in markets that cause them to stray from a perfect model—has been really important since we’ve learned to use data to empirically test theoretical models and constructs. It’s interesting to go back to many of these early philosophical writers and notice that their gut feelings–as expressed in their essays–are as germane now as they were then. Karl Polanyi critiqued early market Capitalism in the 20th century in “The Great Transformation.” Polanyi argued that the idea of an efficient market economy was basically as utopian as its Marxist counterpoint. Two sociologists have written a book that revisits the Polanyi critique. Is the Free Market an impossible Utopia? This is from an interview with the two researchers.
Polanyi’s core thesis is that there is no such thing as a free market; there never has been, nor can there ever be. Indeed he calls the very idea of an economy independent of government and political institutions a “stark utopia”—utopian because it is unrealizable, and the effort to bring it into being is doomed to fail and will inevitably produce dystopian consequences. While markets are necessary for any functioning economy, Polanyi argues that the attempt to create a market society is fundamentally threatening to human society and the common good. In the first instance the market is simply one of many different social institutions; the second represents the effort to subject not just real commodities (computers and widgets) to market principles but virtually all of what makes social life possible, including clean air and water, education, health care, personal, legal, and social security, and the right to earn a livelihood. When these public goods and social necessities (what Polanyi calls “fictitious commodities”) are treated as if they are commodities produced for sale on the market, rather than protected rights, our social world is endangered and major crises will ensue.
Free market doctrine aims to liberate the economy from government “interference”, but Polanyi challenges the very idea that markets and governments are separate and autonomous entities. Government action is not some kind of “interference” in the autonomous sphere of economic activity; there simply is no economy without government rules and institutions. It is not just that society depends on roads, schools, a justice system, and other public goods that only government can provide. It is thatall of the key inputs into the economy—land, labor, and money—are only created and sustained through continuous government action. The employment system, the arrangements for buying and selling real estate, and the supplies of money and credit are organized and maintained through the exercise of government’s rules, regulations, and powers.
By claiming it is free-market advocates who are the true utopians, Polanyi helps explain the free market’s otherwise puzzlingly tenacious appeal: It embodies a perfectionist ideal of a world without “coercive” constraints on economic activities while it fiercely represses the fact that power and coercion are the unacknowledged features of all market participation.
In “Judgments About Fact and Fiction by Children From Religious and Nonreligious Backgrounds,” Kathleen Corriveau, Eva Chen, and Paul Harris demonstrate that children typically have a “sensitivity to the implausible or magical elements in a narrative,” and can determine whether the characters in the narrative are real or fictional by references to fantastical elements within the narrative, such as “invisible sails” or “a sword that protects you from danger every time.”
However, children raised in households in which religious narratives are frequently encountered do not treat those narratives with the same skepticism. The authors believed that these children would “think of them as akin to fairy tales,” judging “the events described in them as implausible or magical and conclude that the protagonists in such narratives are only pretend.”
And yet, “this prediction is likely to be wrong,” because “with appropriate testimony from adults” in religious households, children “will conceive of the protagonist in such narratives as a real person — even if the narrative includes impossible events.”
The researchers took 66 children between the ages of five and six and asked them questions about stories — some of which were drawn from fairy tales, others from the Old Testament — in order to determine whether the children believed the characters in them were real or fictional.
“Children with exposure to religion — via church attendance, parochial schooling, or both — judged [characters in religious stories] to be real,” the authors wrote. “By contrast, children with no such exposure judged them to be pretend,” just as they had the characters in fairy tales. But children with exposure to religion judged many characters in fantastical, but not explicitly religious stories, to also be real — the equivalent of being incapable of differentiating between Mark Twain’s character Tom Sawyer and an account of George Washington’s life.
Archaeologists have found an 8000 year old skull containing residual brain matter. 
Archaeologists in Norway have found what could potentially be an 8,000-year-old human skull – which contains traces of brain matter.The finding at a site in Stokke, Vestfold, could shed light on life in the Stone Age, a period that lasted roughly 3.4 million years, and ended between 6000 BC and 2000 BC.It was among a number of discoveries unearthed during the excavation, The Local reported.
It is too early to tell whether the bone remains are those of a human or an animal, but early tests have dated the skull to around 5,900BC, placing it within the prehistoric Stone Age period.
Gaute Reitan, dig site leader, told NRK that the “one of a kind” skull contained a grey substance that appeared to be brain matter.
But he said it was not possible to confirm if it belongs to a human.
The Guardian reports that the Russian-backed Ukrainian separatists are scurrying to cover up their guilt in the shoot down of the Malaysian commercial jet killing hundreds of people.
The OSCE was trying to gain access to one part of the large crash site but the commander of a rebel unit, known as Commander Glum, blocked them. After the warning shot, the OSCE convoy departed.
There is also confusion over the black boxes and other devices apparently salvaged from the plane. A rebel military commander initially said he was considering what to do with them, while another rebel leader, Aleksandr Borodai, contradicting his colleague, said the rebels had no black boxes or any other devices.
The Ukrainian interior ministry added to fears of a cover-up when it released video purportedly taken by police showing a truck carrying a Buk missile launcher with one of its four missiles apparently missing, rolling towards the Russian border at dawn. The video could not be independently verified.
Other material on rebel social media sites was being deleted, including pictures showing the alleged capture of Buk missile vehicles by rebels from a Ukrainian air base last month.
Rebels said the boast on the social media site on Thursday that a plane had been shot down was not put up by them but by a sympathiser who mistakenly assumed it was a Ukrainian military plane that had been shot down. But in a separate posting a rebel leader also claimed that a plane had been brought down. “We warned you – do not fly in our sky,” he said. That too was removed.
A Nato intelligence specialist quoted by the military analysts Janes said the recordings “show that the Russian ‘helpers’ realise that they now have an international incident on their hands – and they probably also gave the order for separatists to erase all evidence – including those internet postings. It will be interesting to see if we ever find this Buk battery again or if someone now tries to dump it into a river.”
Video footage allegedly taken on Thursday appeared to support the idea that pro-Russia separatists had been to blame. It showed a Buk battery seemingly being moved in the rebel-held area between Snizhne and Torez close to the crash site. A still picture allegedly shows a missile in vertical launch mode beside a supermarket in Torez. However, the location has still to be established.
Ukrainian intelligence has published a tape said to be a recording between rebels and Russian intelligence in which they realise there has been a catastrophic blunder. One recording is said to be between a rebel commander, Igor Bezler, and a Russian intelligence officer in which he says: “We have just shot down a plane.” A second recording from an unidentified source puts the blame on Cossack militiamen.
Defence analysts with Russian expertise shared Power’s scepticism that Russia-backed rebel groups would have had the expertise to fire the missile and suggested it was more likely to have been Russian ground troops who specialise in air defence, seconded to help the rebels.
At the Pentagon, officials said a motive for the operation had yet to be determined, as had the chain of command. One said it would be “surprising to us” if pro-Russia separatists were able to operate the Buk missile battery without Russian technical support. The Ukrainian military confirmed it has Buk batteries but said it had none in the area the missile was fired.
Nato had Awacs surveillance and command-and-control planes flying in the Baltics around the time of the crash, but Pentagon officials did not think the aircraft picked up indications of the disaster.
Bob Latiff, a former US weapons developer for the air force and the CIA and now a professor at Notre Dame University, said he leaned towards a belief that it was a case of mistaken identity on the part of those who pressed the button.
“A radar return from an airplane like this would look very similar to that from a cargo plane, as was initially claimed by the separatists. If radar was all they were using, that is a shame,” he said. “All airliners emit identification signals which identify the aircraft and provide other information like altitude and speed. They also operate on known communications frequencies. It doesn’t sound like the separatists were using any of this.
“My guess is the system’s radar saw a return from a big ‘cargo’ plane flying at 30,000 ft or so and either automatically fired, or some aggressive, itchy operator fired, not wanting to miss an opportunity.”
Latiff said that if they had only one radar, as Ukrainian officials suggest, it would have been pointed at the target. A second, rotating one would normally have been part of a battery to pick up other planes in the immediate vicinity, but he said even that would not have established whether it was a commercial plane and there would normally have been communications equipment to pick up signals showing the plane was non-military.
Igor Sutyagin, a Russian military specialist at the London-based Royal United Services Institute, said he regarded the tape recordings as genuine, as well as postings on social media pointing the finger at pro-Russia separatists or Russia itself.
But getting evidence would be very difficult. He said: “A decision has been made on the Russian side to hide their tracks. It will be hard to find the battery.” Satellites might have been able to catch something, but the trail from the missile would have been very short, Sutyagin said.
So, I still can’t discern much of a pattern here but I just found all these links very interesting. What’s on your reading and blogging list today?
Monday Reads
Posted: April 28, 2014 Filed under: Discrimination against women, Economy, Feminists, morning reads, U.S. Politics, War on Women | Tags: Donald Sterling, female gamers, Fukushima workers, Game of Thrones, homophobia, Ichiefu, Japanese Manga, Johnathan McIntosh, Kazuto Tatsuta, LA Clippers, male-dominated culture, middle class, misogyny, NBA, NRA, on-line gaming, Racism, rape, Sarah Palin, waterboarding 64 CommentsGood Morning! Quelle Surprise! Pop Culture is still Misogynist, Racist, and Homophobic!
I found some interesting reads over the weekend so I hope you’ll enjoy them! They are all sort’ve stories that actually reflect a lot of the things that fascinate and entertain me. I love strategy games and have been playing them on line for quite some time Actually, it’s been since the early 1990s when most of the games were simply text oriented. I also love animation art, and books, and of course, music. So, here’s a little bit on that and a little bit of stuff that has to do with social justice too. If I do a have a consistent train of thought here it is that so much of what should be entertaining and could be informative can sow bad seeds. I’ve a few examples where the pop and geek culture are taking on hard topics. Some are successful and examining crucial human stories. Some rely on the same old misogyny, racism, and homobigotry.
Japanese Manga is a way many creative people in Japan explore how they feel about a variety of things. This article is about a new manga book on the lives of the Fukashima plant workers.
A manga that describes the reality of daily life at the crippled Fukushima No. 1 nuclear power plant through the eyes of a worker is enjoying popularity.
“Ichiefu” (1F), written by Kazuto Tatsuta, 49, first appeared in autumn 2013 as a serial comic in the weekly magazine “Morning,” published by Kodansha Ltd. Ichiefu stands for the Fukushima No. 1 plant among locals.
The comic was published in book form on April 23. The publisher shipped a total of 150,000 copies of the first volume, which is an unusually large number for a little-known manga artist.
Tatsuta said he changed jobs repeatedly after graduating from university. At the same time, he also worked as a comic strip artist.
It was when he was considering another job change that the March 2011 Great East Japan Earthquake and tsunami occurred, triggering the nuclear accident at the Fukushima plant.
While seeking a better-paying job, Tatsuta also wondered what part he could do as a citizen of Japan to help. As a result, he began to work at the Fukushima No. 1 nuclear power plant from June 2012 for a total of six months.
“Ichiefu” describes the situation at the plant in great detail. The descriptions of equipment, such as the masks and protective gear the workers used, and the procedures they took to measure radiation levels make readers feel as if they are there and reading actual worker manuals.
The comic also depicts intimate practices only workers there would know. For example, the workers always say “Be safe” to each other before starting their shifts.
Each of the workers was also required to stop working when his dosimeter issued a fourth warning sound.
I quit playing a few games last year that I had really grown fond of because of the rampant misogyny and homophobia of many of the white male 
players. I had repeatedly asked them to constrain their language, behavior, and what they posted. I am fortunately playing a game right now where that’s not the case. I am still one of the few female players in my alliance. I believe I am one of two but I have found that I generally enjoy better game play if I am in an alliance where there are many openly gay men. This NPR article summarizes a series of articles that are focused on white male privilege in the online game atmosphere.
In video games, sexism often comes in the form of male-dominated storylines and character archetypes. In the video game community, it takes a more menacing shape.
It ranges from attempts to silence female critics to the harassment of fellow players. Some harassment even goes so far as phone calls and rape threats, as one female game developer found out last year.
“The issue is often framed as a women’s issue, but sexual harassment, sexism and misogyny in gaming is not a women’s issue — it’s a gaming community issue,” says Jonathan McIntosh, a producer for the Tropes vs. Women in Video Games Web series.
Last week, McIntosh wrote a piece for gaming website Polygon about what he calls the “invisible benefits” that males experience while playing video games. In the post, he lists 25 effects of “male gamer privilege.” Here’s a sample:
- I can choose to remain completely oblivious, or indifferent to the harassment that many women face in gaming spaces.
- I am never told that video games or the surrounding culture is not intended for me because I am male.
- I can publicly post my username, gamertag or contact information online without having to fear being stalked or sexually harassed because of my gender.
- I will never be asked to “prove my gaming cred” simply because of my gender.
- I will almost always have the option to play a character of my gender, as most protagonists or heroes will be male by default.
- If I am trash-talked or verbally berated while playing online, it will not be because I am male nor will my gender be invoked as an insult.
- My gaming ability, attitude, feelings or capability will never be called into question based on unrelated natural biological functions.
So far, the reaction to his post — both in the more than 700 comments on the piece and elsewhere — has been relatively civil. As McIntosh pointed out on Twitter, he doubts it would have been as civil if he had been a female writer raising the same points.
“I’m saying the same thing that women have been saying for years,” McIntosh says. “There’s nothing in my piece that’s really new, it’s just that it’s coming from me. If my name was Joanna McIntosh … I’d be called irrational, I’d be called hysterical and I’d be called too sensitive.”
One other thing that I did not mention last week but I would like to mention this week is the rape scene between the Lannister twins in Game of Thrones. The same scene in the book actually was rough but consensual.
There’s been a lot of discussion, Internet rage, and general overall hoopla following Sunday night’s episode of Game of Thrones, as the television show made the most shocking book-to-screen deviation to date. *Spoiler free for future books.*
Jaime and Cersei finally had their reunited love scene, and suddenly for book readers, Jeyne Westerling seemed like a small cinematic sacrifice to make in comparison. I don’t want to get into a philosophical discussion on whether or not this scene constitutes as rape. Smarter people than I have alreadydonethat.
What we have to work with in the scene is what the characters said and did because we can’t know how they felt. And whether or not the scene was intended to come across as consensual sex, the way the scene was cut by the director makes it definitive to the audience that it was not consensual. Cersei repeatedly said no while Jaime forced himself on top of her and answered that he didn’t care as his creepy voiceover carried out onto a shot of Arya staring at mountains. If that’s all we know about the scene, then yes, in the television show Jaime raped Cersei.
In some ways, it’s useful for television shows to acknowledge the extent of sexual violence in our culture. These narratives allow necessary stories to be told. But the execution is too easy. From daytime soap operas to prestige cable shows, rape is all too often used to place the degradation of the female body and a woman’s vulnerability at the center of the narrative. Rape is used to create drama and ratchet up ratings. And it’s rare to see the brutality and complexity of a rape accurately conveyed on-screen. Instead, we are treated to an endless parade of women being forced into submission as the delicate and wilting flowers television writers and producers seem to want them to be.
I am still wondering why there seems to be a renaissance in misogny, racism and homobigotry. You would think that the sports arena would have made better strides against racism given that teams and fans are fully integrated to the idea that there are players of many races. However, it seems the real money and power behind the bread and circuses are still those rich, horrid, white men. We talked about the Clippers’ owner last week. There is, of course, more on that.
Deadspin has acquired an extended, 15-minute version of the conversation between Clippers owner Donald Sterling and his then-girlfriend V. Stiviano. If the original nine-minute tape acquired by TMZ left any questions about Sterling’s opinions regarding minorities, the audio here should remove all doubt that he’s a doddering racist with views not too far removed from the plantation.
The Clippers themselves showed some class this week in a protest that was priceless. There will undoubtedly be more coming and hopefully the NBA can find a way to strip Sterling of the franchise.
The Clippers gathered at center court before a118-97 Game 4 loss in their first-round series against the Golden State Warriors and took off their Clippers warm-up shirts and left them there. They then warmed up wearing inside-out red shooting shirts that did not display the Clippers name or logo. During the game, players wore black arm or wrist bands and black socks.
In other news, water is still wet and Sarah Palin is still one of the dumbest people on the planet. This is the money quote she gave the NRA: ‘Waterboarding is how we baptize terrorists’.
Former Alaska Gov. Sarah Palin (R) defended the controversial enhanced interrogation technique of waterboarding this weekend, and implied that the practice would still be commonplace “if I were in charge.”
“They obviously have information on plots to carry out Jihad,” she said at the National Rifle Association (NRA) annual meeting on Saturday evening, referring to prisoners. “Oh, but you can’t offend them, can’t make them feel uncomfortable, not even a smidgen. Well, if I were in charge, they would know that waterboarding is how we baptize terrorists.”
The remark stands in stark contrast to the opinion of her former running mate, Sen. John McCain (R-Ariz.).
The former Republican presidential nominee, who spent more than five years in a prison camp during the Vietnam War, has repeatedly denounced the practice, which he says is torture.
In her speech, Palin praised the NRA, a group whose members “are needed now more than ever, because every day we are seeing more and more efforts to strip away our Second Amendment rights,” she said.
I am still waiting for some examples of how any government in the US is stripping away the second amendment rights. I do, however, have thousands of examples of how women are losing their right to self determination.
My last offering this morning is yet another in depth article on the demise of the middle class in the USA. Middle class Americans are an endangered species.
Wages for millions of American workers, particularly those without college degrees, have flat-lined. Census figures show the median household income in 2012 was no higher than it was 25 years ago. Men’s median wages were lower than in the early 1970s.
Meanwhile, many of the expenses associated with a middle-class life have increased beyond inflation. This includes college tuition, whose skyrocketing cost has laid siege to a bedrock principle of the American Dream: that your children will do better than you did.
A recent poll conducted by the Washington Post and the Miller Center at the University of Virginia found that 40 percent of those calling themselves middle class felt less financially secure than they were just a few years ago. Forty-five percent said they worry “a lot” about having enough money stashed away for retirement, and 57 percent said they worry about meeting their bills. Less than half said they expect their kids to do any better.
Fewer Americans find themselves in the heart of the middle class with every passing year.
In the mid-1970s, the majority of Americans were in the middle, with 52 percent earning the equivalent (in today’s dollars) of $35,000 to $100,000. Today, according to census figures, the share of households earning under $35,000 is virtually unchanged, 35 percent. The shift has occurred in the other two categories. Households with incomes over $100,000 have doubled, to 22 percent, while less than 44 percent are in the middle cluster.
So, what’s on your reading and blogging list today?
You gotta be on Prozac to be an economist these days, I swear
Posted: July 31, 2013 Filed under: Economy | Tags: fiscal policy, Larry Summers, the Fed, US economic growth 39 Comments
There are so many elegant things about my chosen field that I do, in fact, still get excited when I introduce huge numbers of undergraduates to Economics. I don’t do much of that anymore given that I am better paid and easier employed as a graduate finance teacher churning out hapless MBAs. But, part of me still knows that we have lots of answers to the big policy questions. The problem is that Republican Revisionism and Big Money from Big Finance has totally overwhelmed the main stories and theories that we all know well. The worst situation is that the cult of the Austrian School is being taken seriously by a select group of young, white male journalists and getting more virtual ink than it truly deserves. Then, there is the absolute fail of the urgency of fiscal policy when unemployment is this high and this pervasive. The one bright light–despite the howling of goldbugs and Birchers–has been the FED. There are still economists over there in that outfit. If you’re used to deconstructing markets like I am, you can see that the markets trust the FED’s policy. It’s not that the FED directly benefits them any more. Those days of buying up nasty assets are behind us. It’s that the Fed understands its priorities are stable financial markets and banking systems and tackling either inflation or unemployment depending on the priority.
Inflation is the thing that is most directly impacted by FED policy. It hasn’t been an issue since Paul Volcker got rid of it and the FED announced its Taylor Rule boundaries. It’s the legacy of Milton Friedman and the monetarists which is actually the school that I most fit as a financial economist of a certain age. That legacy and the legacy of fiscal policy as established by the models and hypotheses first provided by J.M. Keyenes and later proved and improved by a slew of brainy economists with computers and databases–like Paul Samuelson–has been under attack with no theoretical or empirical basis. It is all political and screed journalist based. The nonsense has been amplified by a President who seems completely unwilling to trust real economists and relies on lawyers with emphasis on economic policy. That’s like having a biologist that watches bears in the woods go over your blood work imho. I don’t care how much freaking experience you have writing policy law, it’s not the same as being grounded in the theory and totally aware of the empirical proofs and disproofs.
So, as the speculation about a possible new fed chair pops up, we get stuff like this. Obama is defending Larry Summers. The man is an economist but the man is also not what you would call a particularly skillful leader as witnessed by his tenure at Harvard. He also has said some things about women and science and math that are not very artful and certainly not very helpful to those of us that struggle to be credible despite our obvious genitalia.
Barack Obama has strongly defended Larry Summers against opposition from the left to the possible appointment of the president’s former economic adviser as the next chair of the Federal Reserve.
Mr Obama, speaking at a closed meeting of the Democratic caucus of the House of Representatives, reacted strongly at an otherwise friendly meeting when Ed Perlmutter, a congressman from Colorado, urged him not to appoint Mr Summers.
According to members of Congress present at the meeting on Capitol Hill, Mr Obama urged Democrats to give Mr Summers a “fair shake” and said he had been a loyal and important adviser when the president took office in the midst of a deep recession in 2008.
Mr Summers, a former Treasury Secretary and president of Harvard University, and Janet Yellen, the vice-chair of the Fed, are the leading contenders for the job.
Mr Obama also mentioned by name a third person, Don Kohn, as a possible candidate. He said he had yet to make up his mind on whom he would nominate for the job.
The president said there was little in the nature of policy differences between them, saying you “would have to slice the salami very thin” to find areas in which they diverged.
Don Kohn is a Fed insider and pretty well known as a monetary policy dove just as Obama appears to be a fiscal policy dove. Let me qualify that description. They both come from the let people suffer unnecessarily and let the markets work things out school of thought. In good economic times, that’s an okay stand. In the face of persistent unemployment that is basically looking at a huge number of people and saying let them eat cake. That last option is unnecessary because the bottom line is that we know better and can do better by these folks. It kills me to know what I know and watch the passivity of Obama and the retch-inducing ignorance of Republicans in the face of great suffering. If, in the long run we are all dead, in the short run we all suffer and face economic and personal devastation in the face of incremental steps and not whole-hearted policy wars on dire economic situations. Frankly, I think Obama has a problem with the Janet Yellen because she’s likely to tell him to off if she doesn’t like what he has to say. I really do. She’s a hard boiled economist with a no nonsense approach.
It’s not that we’re doing badly. It’s that we’re creeping along and not growing fast enough in the face of all this deep, long, persistent unemployment and no one’s hair is on fire that can do anything about it.
Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 1.7 percent in the second quarter of 2013 (that is, from the first quarter to the second quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent (revised).
The Bureau emphasized that the second-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 3 and “Comparisons of Revisions to GDP” on page 18). The “second” estimate for the second quarter, based on more complete data, will be released on August 29, 2013.
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and residential investment that were partly offset by a negative contribution from federalgovernment spending. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the second quarter primarily reflected upturns in nonresidential fixed investment and in exports, a smaller decrease in federal government spending, and an upturn in state and local government spending that were partly offset by an acceleration in imports and decelerations in private inventory investment and in PCE.
We cannot creep our way back to prosperity.
The fact that the donor class and corporate profits are doing well is what’s driving this anemic policy response. The people most effected by the inactivity are either fighting it out with racial resentment or feeling the usual helplessness that goes with being a picked-on out class. That infighting is helping those at the top ignore the plight of the folks that find they are quickly losing ground. That is why any of these FED appointments is basically a win for the status quo. It is also why the though of Larry Summers as FED chair gives me the heebiejeebies.
Like I said, real economists reacted to this news today like this: Economists React: Better GDP, but Trend Still Sluggish. Here’s some examples.
While this is a better than expected report, it isn’t very strong. If you look at the past three quarters, the economy has not done very much. That is the economic environment facing the Fed as it meets today. –Joel Naroff, Naroff Economic Advisors
The fact that declining federal spending continues to be a drag on economic growth is another reminder that now is not the time for Washington to impose self-inflicted wounds on the economy. The Administration continues to urge Congress to replace the sequester with balanced deficit reduction, and promote the investments our economy needs to put more Americans back to work, such as by rebuilding our roads and bridges. –Alan Krueger, White House Council of Economic Advisers
–The U.S. economy grew modestly in the second quarter because of hefty fiscal restraint, but growth exceeded expectations and looks to turn convincingly higher in the second half of the year. Sequestration chopped federal nondefense spending 3.2% annualized in the quarter, and civic worker furloughs slowed consumer spending to 1.8%, despite motor vehicle sales hitting five-year highs. On the plus side, residential construction clocked in with a fourth consecutive double-digit gain, exports bounced back strongly, and state and local government expenditure rose for the first time in a year. Most importantly, businesses appeared less concerned about the knock-on effects of sequestration. –Sal Guatieri, BMO Capital Markets Economics
All during this economic bust up we’ve had government as a drag on the economy. This has been at every level of government. It is a massive fail on the part of our modern democracy.
Again, we cannot creep our way back to prosperity. This is especially true if all levels of government are holding back everything but the profits of a few large corporations and the taxes of the people who have gained so much over the last three decades. It just ain’t right and it just isn’t good economic policy.
Monday Reads
Posted: May 6, 2013 Filed under: American Gun Fetish, Austerity, children, Economy, Foreign Affairs, Homeless, Israel, Mental Health, morning reads, Syria | Tags: Gabby Giffords, gun, israel, safety, Syria, toxic products for children, wealth inequality 34 Comments
Good Morning!
There’s a lot going on in the middle east as tensions mount between Syria and Israel. The situation continues to unravel.
Israeli jets devastated Syrian targets near Damascus on Sunday in a heavy overnight air raid that Western and Israeli officials called a new strike on Iranian missiles bound for Lebanon’s Hezbollah.
As Syria’s two-year-old civil war veered into the potentially atomic arena of Iran’s confrontation with Israel and the West over its nuclear program, people were woken in the Syrian capital by explosions that shook the ground like an earthquake and sent pillars of flame high into the night sky.
“Night turned into day,” one man told Reuters from his home at Hameh, near one of the targets, the Jamraya military base.
Former Arizona Congress Woman Gabby Giffords won a profile in courage award in Boston. Her new role is an outspoken and effective symbol for more gun safety laws.
“It takes real courage to overcome a disability that is so personal,” says Guy McKhann, a leading neurologist at Johns Hopkins University.
Although he hasn’t treated her, he says it was clear that, distinct from cognitive abilities, retrieving the right words is difficult for Giffords. “What she wants to say sometimes doesn’t come out,” McKhann says. (A personal disclaimer: I am chairman of the Profile in Courage Committee that honored her Sunday and have a son with a brain injury.)
On Jan. 8, the two-year anniversary of the shooting, Giffords and Kelly started Americans for Responsible Solutions. They’ve already raised more than $10 million, enlisted more than 300,000 supporters, aired national television ads advocating expanded background checks for gun purchases and campaigned for the measure in a dozen states.
They are perfect for this role. She is a courageous survivor of a gun attack, a former Western member of Congress, a longtime hunter and supporter of gun rights. He is a combat veteran, Navy pilot and space shuttle commander. The National Rifle Association can’t paint them as effete foes of the Second Amendment.
In January, Giffords delivered emotional testimony on the measure to the Senate Judiciary Committee. She and Kelly personally lobbied members. Before last month’s Senate vote on the proposal, she sought out Arizona Republican Jeff Flake, a friend from her House days, and blurted out, “Need,” as in we need you. Unlike his Arizona colleague John McCain, who backed the background checks compromise, Flake voted no. The measure failed; since then, polls show a drop in Flake’s home-state popularity.
If you have young children around, this should scare you. You should also check the list at the link in the article to see if any of this crap is in your home.
Over 5000 children’s products contain toxic chemicals linked to cancer, hormone disruption and reproductive problems, including the toxic metals, cadmium, mercury and antimony, as well as phthalates and solvents. A new report by the Washington Toxics Coalition and Safer States reveals the results of manufacturer reporting to the Washington State Department of Ecology.
Makers of kids’ products reported using 41 of the 66 chemicals identified by WA Ecology as a concern for children’s health. Major manufacturers who reported using the chemicals in their products include Walmart, Gap, Gymboree, Hallmark, H & M and others. They use these chemicals in an array of kids’ products, including clothing, footwear, toys, games, jewelry, accessories, baby products, furniture, bedding, arts and crafts supplies and personal care products. Besides exposing kids in the products themselves, some of these chemicals, for example toxic flame retardants, build up in the environment and in the food we eat.
Examples of product categories reported to contain toxic chemicals include:
- Hallmark party hats containing cancer-causing arsenic
- Graco car seats containing the toxic flame retardant TBBPA (tetrabromobisphenol A)
- Claire’s cosmetics containing cancer-causing formaldehyde
- Walmart dolls containing hormone-disrupting bisphenol A
Kinda terrible isn’t it?
The basic idea behind Keynesian support for stimulus/opposition to austerity under current conditions is that when private demand is weak and monetary policy is up against the zero lower bound, there is no offset to changes in government spending. This shouldn’t be a hard concept to grasp — in particular, you would think that anyone posing as an economist could grasp the conditional nature of the statement.
Meanwhile, the proof is in the results. Look at the record highs in the Eurozone unemployment numbers.
European unemployment has hit a new record and Moody’s cut Slovenia’s debt rating to junk status as German Chancellor Angela Merkel defended her crisis strategy, pushing for twin goals of fiscal rigour and growth.
Grim new data showed on Tuesday that European unemployment set a fresh record in March with more than 19 million jobless people — including one out of four under-25-year-olds.
The Eurostat data agency reported an extra 62,000 people joining unemployment queues in just four weeks in the eurozone as the jobless rate climbed for the 23rd consecutive month — hitting 12.1 percent in March.
The frightening new figures — which showed almost two in three under-25s in Greece and Spain unemployed — come amid vocal criticism over the effects on jobs of the cost-cutting measures pushed by austerity advocates.
Anger against austerity is rising across Europe as hard economic data fails to show a turn-around.
Greece saw joblessness climb relentlessly to 27.2 percent in January, the latest available figures, from 26.3 percent in December.
Meanwhile Portugal, with unemployment at 17.5 percent in March, was seeking to agree new austerity measures after its Constitutional Court rejected as discriminatory cuts to civil servant salaries and pensions decided in response to demands by EU-IMF lenders.
In Cyprus, which saw a huge month-to-month rise in unemployment to 14.2 percent against 10.7 percent the previous month, the parliament was to debate the terms of a tough 10-billion-euro EU-IMF bailout.
The EU’s employment and social affairs commissioner Laszlo Andor warned that “EU institutions and governments, business and social partners at all levels need to do all they can to avoid a ‘lost generation'”
There is absolutely no reason for us to relive the Great Depression years and the complete political upheaval that resulted. I just do not get the obsession with debt. This is especially true because there is so little evidence for it and what evidence was provided was shown to be falsified, error-riddled, and just plain wrong by these kinds of numbers.
I wanted to end with a story that should be on every one’s radar but probably isn’t. Homelessness has been an increasing problem in this country for some time. So has the lack of treatment for the mentally ill. It’s been a Reagan pogrome that we can’t seem to rid ourselves of. Here’s the connection between the two.
Most homeless shelters in the US only take in people who are deemed mentally stable. Most don’t offer anything beyond basic shelter.
Housing programs that also provide psychological services are in the minority, homeless advocates told me. The harsh reality is that most homeless people living in the US who also suffer from serious illnesses like bi-polar disorder, schizophrenia and a host of other mental health disorders, are typically turned away from shelters on a nightly basis.
It’s a disturbing statistic when you discover, as I did, that more than 50 percent of the people living on the streets in the US are mentally ill. Of that number, I was told, less than half are receiving any mental health treatment.
For years, Candace Wood was one of them. I met with Wood in the dining room of Knoxville’s Volunteer Ministry Center (VMC).
For years the mission has dedicated itself to ending homelessness by providing not just housing, but the mental health services that ensures its residents don’t just get off the street, but also have the ability to stay off the street.
Wood told me that before she was connected with the VMC, she was, “wandering around aimlessly.”
“But, I was sick. I was sick because I didn’t take the medicine,” she said.
Wood said she is bi-polar. Since she was previously not on medication and was unable to manage her symptoms. She used to break into buildings to stay warm, hoping it would also get her arrested. Wood said that in jail she knew she’d get the meals and medication she needed.
Ginny Weatherstone is a passionate advocate for Knoxville’s homeless, she’s also the CEO of Volunteer Ministry Center. She says Wood’s story is a common one among the homeless who are also mentally ill.
“Three ‘hots’ and a cot. You get that in jail. For them, jail is their mental health hospital. Jail is their housing,” Weatherstone told me.
I’ve always felt that the Reagan and Bush years were all about punishing the poor, the ill, the elderly, the weak, the young, and the feeble. Statistics show that the wealthy have been doing fabulously since these three presidents reigned. It really is such a horrible statement on our countries’ priorities. How can so many folks be so rich and not give a damn about any one else.
The Rich Have Gained $5.6 Trillion in the ‘Recovery,’ While the Rest of Us Have Lost $669 Billion
It’s no accident.Oh, are we getting ripped off. And now we’ve got the data to prove it. From 2009 to 2011, the richest 8 million families (the top 7%) on average saw their wealth rise from $1.7 million to $2.5 million each. Meanwhile the rest of us — the bottom 93% (that’s 111 million families) — suffered on average a decline of $6,000 each.Do the math and you’ll discover that the top 7% gained a whopping $5.6 trillion in net worth (assets minus liabilities) while the rest of lost $669 billion. Their wealth went up by 28% while ours went down by 4 percent.
It’s as if the entire economic recovery is going into the pockets of the rich. And that’s no accident.
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