The Real Moochers: America’s Bailed Out and Subsidized CEOsPosted: August 28, 2013 Filed under: The Bonus Class 23 Comments
Any one that has spent much time in private sector job can probably discuss how demoralizing the place can be even when you’re doing something you love. The guy above you always takes credit for what you do right and blames you for what goes wrong. You get shoved into a salaried position so they can avoid paying you more and better and overtime. The expectations are always for more than a 40 hour work week even you when you have little to do for a time period. The benefits are bad and getting worse. Then they were you out physically, emotionally, and every which way possible which explains a lot of the graph and the rise in disability. American Management and corporations treat workers about that same way they treat machines. They wear them out and throw them away when they are no longer functional. No amount of consumerable junk eventually replaces having to go to a job that destroys both your physical and mental health. So, part of the weirdness of the labor markets these days is that people are just dropping out of the labor force.
If the decline stemmed largely from an aging work force, it would be much less worrisome. But the initial wave of baby-boomer retirements plays only a small role in the drop; the labor force participation rate has fallen almost as sharply for people aged 25 to 54 as it has for the overall adult population.
As the report notes, economists are not entirely sure what has caused the shift. One factor seems to be the so-called skills gap — the slow growth in educational attainment in recent decades, even as the economy has become more technologically advanced.
A second factor is most likely the weak economic growth of the past 13 years: the 2000-1 dot-com bust, the mediocre expansion that followed, the financial crisis that began in 2007 and the disappointing recovery of the last few years.
Another cause may be the rise in the number of workers on disability. The report cites a study by the Federal Reserve Bank of San Francisco to argue that disability is helping cause the decline in work. That’s probably right, although it is worth remembering that the growth of the ranks of the disabled may be more of an effect of the jobs slump than a cause.
Either way, the decline in labor force participation almost certainly receives too little attention. Each month, small changes in the unemployment rate receive great scrutiny. We often overlook just how flawed a measure of the job market that rate has become over the last 13 years.
So, the news continues to be pretty glum for American workers even though there are more unemployed going back to work. Their wages will not keep them in a middle class standard of living. Changes are some health problem will devastate their finances. Extremely rich people are pouring tons of money into creating untrue memes about social security, medicare, and the size of the government debt. Let’s not even discuss the fact that we have direct evidence that Keynesian stimulus works and government spending has been coming down rapidly under the Obama administration. Truth and data must be for suckers like us.
Meanwhile, here’s a disturbing set of studies that really should grab some attention. “Nearly 40 percent of the CEOs on the highest-paid lists from the past 20 years were eventually “bailed out, booted, or busted.” These are the folks grabbing huge salaries for supposedly stellar performance.
But our analysis reveals widespread poor performance within America’s elite CEO circles. Chief executives performing poorly — and blatantly so — have consistently populated the ranks of our nation’s top-paid CEOs over the last two decades.
The report’s key finding: nearly 40 percent of the CEOs on these highest-paid lists were eventually “bailed out, booted, or busted.”
- The Bailed Out: CEOs whose firms either ceased to exist or received taxpayer bailouts after the 2008 financial crash held 22 percent of the slots in our sample. Richard Fuld of Lehman Brothers enjoyed one of Corporate America’s largest 25 paychecks for eight consecutive years — until his firm went belly up in 2008.
- The Booted: Not counting those on the bailed out list, another 8 percent of our sample was made up of CEOs who wound up losing their jobs involuntarily. Despite their poor performance, the “booted” CEOs jumped out the escape hatch with golden parachutes valued at $48 million on average.
- The Busted: CEOs who led corporations that ended up paying significant fraud-related fines or settlements comprised an additional 8 percent of the sample. One CEO had to pay a penalty out of his own pocket for stock option back-dating. The other companies shelled out payments that totaled over $100 million per firm.
The ink has dryed on Dodd-Frank. Yet, we have not had the most basic requirements to rein in out-of-control CEO pay implemented.
CEO-worker pay ratio disclosure: Three years after President Barack Obama signed the Dodd-Frank legislation, the SEC has still not implemented this commonsense transparency measure. The reform would discourage both large pay disparities that can harm employee morale and productivity and excessive executive pay levels that can encourage excessively risky behavior.
Pay restrictions on executives of large financial institutions: Within nine months of the enactment of the 2010 Dodd-Frank law, regulators were supposed to have issued guidelines that prohibit large financial institutions from granting incentive-based compensation that “encourages inappropriate risks.” Regulators are still dragging their feet on this modest reform.
Limiting the deductibility of executive compensation: At a time when Congress is debating sharp cuts to essential public services, corporations are able to avoid paying their fair share of taxes by deducting unlimited amounts from their IRS bill for the cost of executive compensation. Two bills, the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act (S.1746) and the Income Equity Act (H.R. 199) would fix this outrageous loophole and significantly reduce taxpayer subsidies for excessive CEO pay.
Couple these concepts with this item. “Taxpayer Dollars Paid A Third Of Richest Corporate CEOs”. Cleary, there is something wrong with this picture.
“Financial bailouts offer just one example of how a significant number of America’s CEO pay leaders owe much of their good fortune to America’s taxpayers,” reads the report. “Government contracts offer another.”
IPS has been publishing annual reports on executive compensation since 1993, tracking the 25 highest-paid CEOs each year and analyzing trends in payouts. Of the 500 total company listings, 103 were banks that received government bailouts under the Troubled Asset Relief Program, while another 62 were among the nation’s most prolific government contractors.
Many of the companies appeared multiple times on the annual top 25 list, with Bank of America appearing 18 times, Citigroup appearing 15 times, while Morgan Stanley and American Express each secured 12 slots. JPMorgan Chase CEO Jamie Dimon has landed on the list twice since the bank received $10 billion under TARP, and American Express CEO Kenneth Chenault has appeared three times since his company accepted $3.4 billion in bailout money. Goldman Sachs received $10 billion under TARP, and made the list seven times in the past two decades, once after receiving its bailout. Washington Mutual and Lehman Brothers, both of which failed in 2008, also appeared on the list, with Leman making eight appearances before filing for bankruptcy.
Aren’t you glad that Looter Larry is on his way to Fed Chair now?
About 12 percent of the 500 CEOs listed comprised executives who ran firms that did extensive business with the federal government. IBM landed on the top CEO pay list 11 times, securing about $11 billion in total government contracts during those years, while General Electric appeared on the annual list eight times, with $16.5 billion in contracts. GE also has a large banking wing, which issued more than $70 billion in debt guaranteed by the federal government at the height of the financial crisis, making it one of the biggest beneficiaries of the bank rescue.
“Approximately 4 percent of GE’s annual revenues come from sales to the U.S. government, primarily work to support the U.S. military,” GE spokesman Seth Martin told HuffPost. Martin emphasized that none of its government-backed debt defaulted, and that the company paid taxpayers $2.3 billion in guarantee fees as part of the program.
Major government contractor United Technologies has appeared on the annual highest-paid CEO list six times, bringing in $32.8 billion in government business, while Lockheed Martin has scored five appearances, generating a total of $125 billion from government contracts from those years.
All these companies argue that they have to pay these sums to CEOS to attract and retain their services. However, look at the performances of CEOS when the economy isn’t going swimmingly. They fail and bring enormous harm to taxpayers, the labor market, and our economy. It’s easy to manage a company in a recovering economy when all you are doing is sitting on cheap money and letting some customers come in to an under-stocked, under-employed, and low service providing company while working your remaining employees to death and disability.
Executive pay has steadily increased relative to average worker pay for several decades, but has exploded since 1993. That year, CEOs of companies in the S&P 500 Index made an average of 195 times as much their average worker. By 2012, that ratio had ballooned to 354 to 1.
Even corporations that do not do business with the government or receive bailouts receive subsidies for CEO pay. All companies are currently able to deduct unlimited amounts in CEO pay from their federal tax bills, so long as the pay takes the form of “performance-based” compensation such as bonuses or stock payments.
It’s just hard for me to continue to blog about these issues because they are so pervasive and not even the smallest of remedies are implemented.
Thursday ReadsPosted: May 2, 2013 Filed under: Barack Obama, corporate greed, hunger, income inequality, morning reads, net-neutrality, Reproductive Health, Reproductive Rights, science, The Bonus Class, the internet, U.S. Economy, U.S. Politics, War on Women | Tags: archaeology, cannibalism, CEO pay, Commerce Department, DOJ, emergency contraception, FCC, fracking, Jamestown Colony, JC Penney Co., North Dakota, Obama bundlers, Penny Pritzker, Plan B, Ron Johnson, Tom Wheeler 45 Comments
President Obama isn’t looking so “progressive” this morning (what else is new?). Yesterday, his “Justice” department announced they will ignore science as well as the health needs of women and girls by fighting a judge’s order to make Plan B emergency contraception available over-the-counter without age limits. NYT:
The appeal reaffirms an election-year decision by Mr. Obama’s administration to block the drug’s maker from selling it without a prescription or consideration of age, and puts the White House back into the politically charged issue of access to emergency contraception.
The Justice Department’s decision to appeal is in line with the views of dozens of conservative, anti-abortion groups who do not want contraceptives made available to young girls. But the decision was criticized by advocates for women’s reproductive health and abortion rights who cite years of scientific research saying the drug is safe and effective for all ages.
“Age barriers to emergency contraception are not supported by science, and they should be eliminated,” Cecile Richards, the president of Planned Parenthood Federation of America, said in a statement on Wednesday.
In December 2011 the secretary of health and human services, Kathleen Sebelius, blocked the sale of the drug to young girls without a prescription, saying there was not enough data to prove it would be safe. In doing so, Ms. Sebelius took the unprecedented step of overruling the Food and Drug Administration, which had moved, based on scientific research, to lift all age restrictions.
I could use some profane language here, but I’ll spare you for the moment. You may be mumbling to yourself too, after you read about Obama’s latest picks for the FCC and Commerce Department.
First the FCC. The New York Times reports: Telecom Investor Named to Be F.C.C. Chairman.
Tom Wheeler, President Obama’s pick to be the next chairman of the Federal Communications Commission, knows all about the most advanced telecommunications systems — of the 19th century.
In his 2008 book “Mr. Lincoln’s T-Mails: How Abraham Lincoln Used the Telegraph to Win the Civil War,” Mr. Wheeler, an investor in start-up technology and communications companies, documents how Lincoln was an “early adopter” of what has been called “the Victorian Internet.”
Lincoln’s championing and advancement of popular uses of the telegraph are not unlike the challenges Mr. Wheeler is likely to face as chairman of the F.C.C., which is waging an intense battle to keep Internet service free of commercial roadblocks and widely available in its most affordable, up-to-date capabilities.
Mr. Wheeler’s qualifications for “one of the toughest jobs in Washington,” Mr. Obama said, include a long history “at the forefront of some of the very dramatic changes that we’ve seen in the way we communicate and how we live our lives.”
“He was one of the leaders of a company that helped create thousands of good, high-tech jobs,” Mr. Obama said, referring to Core Capital Partners, the Washington investment firm where Mr. Wheeler is a managing director. “He’s in charge of the group that advises the F.C.C. on the latest technology issues,” adding that “he’s helped give American consumers more choices and better products.”
But does all that qualify Wheeler to protect consumers at the FCC? From Ars Technica:
Uh-oh: AT&T and Comcast are ecstatic about the FCC’s new chairman: AT&T calls new chairman an “inspired pick,” seeks end to “outdated” regulations.
President Barack Obama today announced his choice to run the Federal Communications Commission. As reported yesterday, the nominee is Tom Wheeler, a venture capitalist who was formerly a lobbyist at the top of the cable and wireless industries, leading the National Cable Television Association (NCTA) and Cellular Telecommunications & Internet Association (CTIA).
The nomination continues the parade of lobbyists becoming government officials and vice versa, a trend that has favored moneyed interests over the average American citizen and consumer time and again. One can take solace in the fact that Wheeler will be tasked with implementing the communications policies of President Obama, who says he is eager to fight on behalf of consumers and to maintain thriving and open Internet and wireless marketplaces.
But the same President who said “I am in this race to tell the corporate lobbyists that their days of setting the agenda in Washington are over” when he was running for office has given the FCC’s top job to a former lobbyist. Wheeler donated $38,500 to Obama’s election efforts and helped raise additional money for Obama by becoming a “bundler,” arranging for large contributions from other donors after hitting legal limits on personal contributions.
Not surprisingly, the cable and telecom companies that Wheeler springs from are ecstatic about the nomination.
Gotta get rid of those nasty regulations that protect Americans from price gauging, internet censorship, and all that bad stuff.
Next up, behold Obama’s nomination for Commerce Secretary, old pal Penny Pritzker.
Making official what many Democrats have expected for weeks, President Obama plans to nominate Chicago business executive Penny Pritzker, a longtime political supporter and heavyweight fundraiser, as his new Commerce secretary on Thursday morning.
Pritzker’s nomination could prove controversial. She is on the board of Hyatt Hotels Corp., which was founded by her family and has had rocky relations with labor unions, and she could face questions about the failure of a bank partly owned by her family.
With a personal fortune estimated at $1.85 billion, Pritzker is listed by Forbes magazine among the 300 wealthiest Americans. She is the founder, chair and CEO of PSP Capital Partners, a private equity firm, and its affiliated real estate investment firm, Pritzker Realty Group. She played an influential role in Obama’s rise from Illinois state senator to the nation’s 44th president, serving as Obama’s national finance chair in his first campaign for the White House and co-chair of his reelection campaign.
The president is expected to make the announcement at 10 a.m. at the White House.
If confirmed by the Senate, Pritzker would take charge of the administration’s efforts to build relations with business leaders who were often on the sharp end of the president’s first-term rhetoric.
Sigh . . .
This next story is guaranteed to make your blood boil. Bloomberg reports:
It’s been almost three years since Congress directed the Securities and Exchange Commission to require public companies to disclose the ratio of their chief executive officers’ compensation to the median of the rest of their employees’. The agency has yet to produce a rule.
So Bloomberg decided not to wait around any longer and figured out the ratios for us. See the chart at the above link. More:
CEO Pay 1,795-to-1 Multiple of Wages Skirts U.S. Law
Former fashion jewelry saleswoman Rebecca Gonzales and former Chief Executive Officer Ron Johnson have one thing in common: J.C. Penney Co. (JCP) no longer employs either.
The similarity ends there. Johnson, 54, got a compensation package worth 1,795 times the average wage and benefits of a U.S. department store worker when he was hired in November 2011, according to data compiled by Bloomberg. Gonzales’s hourly wage was $8.30 that year.
Across the Standard & Poor’s 500 Index of companies, theaverage multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009, the data show. The numbers are based on industry-specific estimates for worker compensation.
Almost three years after Congress ordered public companies to reveal actual CEO-to-worker pay ratios under the Dodd-Frank law, the numbers remain unknown. As theOccupy Wall Street movement and 2012 election made income inequality a social flashpoint, mandatory disclosure of the ratios remained bottled up at the Securities and Exchange Commission, which hasn’t yet drawn up the rules to implement it. Some of America’s biggest companies are lobbying against the requirement.
“It’s a simple piece of information shareholders ought to have,” said Phil Angelides, who led the Financial Crisis Inquiry Commission, which investigated the economic collapse of 2008. “The fact that corporate executives wouldn’t want to display the number speaks volumes.” The lobbying is part of “a street-by-street, block-by-block fight waged by large corporations and their Wall Street colleagues” to obstruct the Dodd-Frank law, he said.
Are you angry yet? These greedheads are going to keep pushing the envelope until Americans wake up and take to the streets with pitchforks and dust off the guillotines.
My birthplace, North Dakota is changing rapidly–and maybe not in a good way. It turns out the state’s oil is even more plentiful than anyone has realized up till now.
The sea of oil and natural gas underneath North Dakota is far larger than first thought.
There are 7.4 billion barrels of recoverable oil in the western part of the state and extending into Montana, according to the latest estimate by the U.S. Geological Survey.
That’s more than twice the oil the USGS estimated could be recovered five years ago. What’s more, the USGS has nearly tripled its estimate of the natural gas available in the area.
The revised totals could make the North Dakota field the greatest oil and gas find ever in the continental United States, topping the fabled East Texas field that made Texas synonymous with oil wealth. And it would put North Dakota second to Prudhoe Bay as the largest oil producer in U.S. history.
And even this estimate may have to be “revised upward”:
“We think it’s even a little bit conservative,’’ said Ron Ness, president of the North Dakota Petroleum Council.
The new estimate will give fresh momentum to an economic boom within the state that has made it the fastest growing in the nation in both population and incomes. Per capita income has risen to $52,000 a year, sixth-highest in the nation, and once quiet farm towns have been overwhelmed by oil field workers, creating shortages of housing and services.
The USGS said the drilling of 4,000 wells since 2008 in what is known as the Bakken formation has given geologists a better idea of the riches underground. The new analysis also highlights the rapid ascent of North American oil and gas production driven by the advent of the technique known as hydraulic fracturing.
I guess I’m happy about the new jobs and population growth, but it will be sad if North Dakota no longer has clean air and vast open spaces.
You may have heard about this fascinating story–it was up toward the top of Google News much of yesterday. Archaeologists have found strong evidence that Starving Settlers in [the] Jamestown Colony Resorted to Cannibalism. From Smithsonian Magazine:
The harsh winter of 1609 in Virginia’s Jamestown Colony forced residents to do the unthinkable. A recent excavation at the historic site discovered the carcasses of dogs, cats and horses consumed during the season commonly called the “Starving Time.” But a few other newly discovered bones in particular, though, tell a far more gruesome story: the dismemberment and cannibalization of a 14-year-old English girl.
“The chops to the forehead are very tentative, very incomplete,” says Douglas Owsley, the Smithsonian forensic anthropologist who analyzed the bones after they were found by archaeologists from Preservation Virginia. “Then, the body was turned over, and there were four strikes to the back of the head, one of which was the strongest and split the skull in half. A penetrating wound was then made to the left temple, probably by a single-sided knife, which was used to pry open the head and remove the brain.”
Much is still unknown about the circumstances of this grisly meal: Who exactly the girl researchers are calling “Jane” was, whether she was murdered or died of natural causes, whether multiple people participated in the butchering or it was a solo act. But as Owsley revealed along with lead archaeologist William Kelso today at a press conference at the National Museum of Natural History, we now have the first direct evidence of cannibalism at Jamestown, the oldest permanent English colony in the Americas. “Historians have gone back and forth on whether this sort of thing really happened there,” Owsley says. “Given these bones in a trash pit, all cut and chopped up, it’s clear that this body was dismembered for consumption.”
There’s much more at the link.
Now it’s your turn. What are you reading and blogging about today? Please post your links on any topic in the comment thread, and have a great day!
Creating Fiscal StrifePosted: November 29, 2012 Filed under: Catfood Commission, Economy, Federal Budget, Federal Budget and Budget deficit, George W. Bush, Global Financial Crisis, House of Representatives, Medicare, Politics as Usual, Republican politics, Republican Tax Fetishists, Super Committee, The Bonus Class, the GOP, U.S. Economy, U.S. Politics | Tags: fiscal cliff 15 Comments
One of the things that drives me crazy as an economist and a citizen looking at this so-called “fiscal cliff” is that our fiscal strife has been created by the people least likely to suffer from its resolution. Congress gave the Bush administration authority to start a series of unfunded, reckless wars that have lasted well over a decade. Congress passed the Bush administration’s reckless tax cuts and generous loopholes that have benefited the few at the cost of the many. The Bush administration’s and Congress’ lack of oversight and deregulation of the financial services’ industry created a low-risk, gambling casino with the national investment and savings accounts and the debt markets. This led to a huge recession. These are the roots of our fiscal problems. But, the discussions around cleaning up messes in the District mostly surround Social Security which has nothing to do with the national debt and deficit and items that have become more necessary to average Americans since Congress and the Bush Administration broke the country with its bad policies.
Here’s some of the latest examples. Closing loopholes and unnecessary deductions for certain constituents is a good idea. However, which of these things are on the chopping block? Inkling its way up the priority list is the major middle and working class deduction and source of household wealth: the mortgage interest deduction. I have no problem with eliminating second mortgages, mortgages on boats, and mortgages on second properties. These benefit very few people and really serve little policy purpose. Capping the deduction–with an annual COLA adjustment to the median price and below-based mortgages is also fine. However, what are we likely to see?
As the Obama administration and lawmakers on Capitol Hill scramble to defuse automatic spending cuts and tax increases set to take effect Jan. 1, a herd of sacred cows — from Social Security and Medicare to deductions for charitable giving and mortgage interest — are in danger of losing their untouchable status.
Members of both parties have largely steered clear of detailed proposals so far. But plans put forth in the past year by President Obama and Mitt Romney to place limits on annual total tax deductions are likely to crimp the mortgage-interest deduction for certain taxpayers. Top congressional Republicans also have expressed openness to limiting total tax deductions as part of an overall budget deal. In addition, the presidentially appointed Simpson-Bowles fiscal commission suggested scaling back the mortgage-interest deduction as part of its own set of tax-related proposals.
Current law allows homeowners to deduct the interest paid on mortgage balances up to $1 million, including on second homes, as well as on $100,000 worth of home-equity loans. The deduction overwhelmingly benefits wealthier families, partly because they tend to have larger mortgages and pay more interest, and partly because most low- and middle-income Americans do not itemize deductions on their tax returns. It also tends to favor homeowners on the East and West Coasts, as well as those in large cities such as Chicago, where average home prices are higher.
Edward Kleinbard, a tax expert and law professor at the University of Southern California, said the mortgage-interest deduction represents the kind of government “extravagance” that the country no longer can justify, given its fiscal troubles.
“We simply cannot afford wasteful government subsidy programs anymore, and this is one of the most important examples of that,” Kleinbard said. “It’s very much a subsidy to those Americans who need it least.”
Mitch McConnell continues to service Grover Norquist and the Club for Growth. He’s back on his high horse for no tax increases for the wealthy. Ending tax cuts for the wealthy endlessly shown to have no ill-impact on the economy. There is also no real benefit to extending them.
Senate Republican Leader Mitch McConnell (Ky.) slammed the door Thursday morning on Democratic demands to raise tax rates on families earning more than $250,000 per year.
“We’re insisting on keeping tax rates where they are, first and foremost, to protect jobs and because we don’t think government needs the money in the first place,” McConnell said on the Senate floor.
“The problem, as I’ve said, is that Washington spends too much. But if more revenue is the price that Democrats want to exact, then we should at least agree to do it in a way that doesn’t cost jobs and disincentivize rates, as we all know raising rates would do,” he said.
McConnell’s comments came a day after Speaker John Boehner (R-Ohio) shot down a proposal by a senior GOP lawmaker, Oklahoma Rep. Tom Cole, to agree to extend tax rates only for families earning below $250,000 and resume the battle against higher tax rates on the wealthy next year.
Boehner said President Obama and Democrats should focus on finding ways to cut spending and reform entitlement programs.
The fate of the Bush-era tax rates — which will expire for all income levels in January — has dominated the debate over the slew of tax increases and spending cuts that are set to begin next year.
McConnell scolded the president Thursday for sticking fast to his campaign pledge to seek higher taxes on the rich, and made clear that raising tax rates on anyone is unacceptable.
The debate over Medicare is likely to be equally absurd. Medicare needs some reworking. Most of its problems comes from the pharmacy benefit which currently allows Big Pharma to price gouge participants and the taxpayers. But, you wouldn’t know that from the conversation. Republicans are playing games with Amercan’s health. They appear to be clinging to the Ryan’s voucher plan which would be disastrous for the majority of retired seniors.
The austerity crisis talks have hit a peculiar impasse. The problem isn’t, as most analysts expected, taxes, where Republicans seem increasingly resigned to new revenue. It’s Medicare. And the particular Medicare problem isn’t that Democrats are refusing the GOP’s proposed Medicare cuts. It’s that Republicans are refusing to name their Medicare cuts.
Politico quotes a “top Democratic official” who paints the picture simply: “Rob Nabors [the White House negotiator], has been saying: ‘This is what we want on revenues on the down payment. What’s your guys’ ask on the entitlement side?’ And they keep looking back at us and saying: ‘We want you to come up with that and pitch us.’ That’s not going to happen.”
That’s partly politics. If nothing else, Republicans are respectful of Medicare’s political potency. Recall that a core Republican message in both the 2010 and 2012 elections was that Democrats, through Obamacare, were cutting Medicare too much. Republicans, already concerned about their brand, don’t want to rebrand themselves as the party of Medicare cuts.
But it’s partly policy, too. The fact is that short of converting the program to a premium support system — a non-starter after they lost the 2012 election — Republicans simply don’t know what they want to do on Medicare.
Scour the various outlets for Democratic policy ideas and you’ll find plenty of proposed Medicare cuts. President Obama’s 2013 budget, for instance, includes hundreds of billions in Medicare cuts (see pages 33-37), and caps the program’s long-term growth at GDP+0.5 percent. More recently, the Center for American Progress released a 46-page proposal for cutting Medicare by almost $400 billion.
Republicans, meanwhile, have focused their energy on a long-term effort to convert Medicare to a premium-support model. Paul Ryan’s 2013 budget kept the Affordable Care Act’s Medicare cuts for the next 10 years and proposed to convert the program to a premium-support model in the future. Mitt Romney’s platform proposed reversing Obamacare’s Medicare cuts and offered a vague framework for converting the program to a premium-support model in the future.
If you dig deep into the Republican think tank world, you can find a few proposals that focus on the near-term.
The current fiscal ‘cliff’ framework appears to place a lot of burden on those least able to take it as well as those least responsible for creating the problems.
Cut through the fog, and here’s what to expect: Taxes will go up just shy of $1.2 trillion — the middle ground of what President Barack Obama wants and what Republicans say they could stomach. Entitlement programs, mainly Medicare, will be cut by no less than $400 billion — and perhaps a lot more, to get Republicans to swallow those tax hikes. There will be at least $1.2 trillion in spending cuts and “war savings.” And any final deal will come not by a group effort but in a private deal between two men: Obama and House Speaker John Boehner (R-Ohio). The two men had a 30-minute phone conversation Wednesday night — but the private lines of communications remain very much open.
No doubt, there will be lots of huffing and puffing before any deal can be had. And, no doubt, Obama and Congress could easily botch any or all three of the white-knuckle moments soon to hit this town: the automatic spending cuts and expiration of the Bush tax cuts, both of which kick in at the end of this year, and the federal debt limit that hits early next.
Go to the Politico story for a concept of what’s at stake and at issue.
Speaker John Boehner (R-Ohio) said Thursday there had been “no substantive progress” in fiscal-cliff negotiations in the two weeks since congressional leaders met with President Obama.
Boehner, addressing reporters after a meeting with Treasury Secretary Tim Geithner in the Capitol, called on the White House to “get serious” about the talks and warned of a “real danger” that Jan. 1 would come without a deal if President Obama did not offer up specific spending cuts he would be willing to accept.
“Despite claims that the president supports a balanced approach, the Democrats have yet to get serious about real spending cuts,” Boehner said. “Secondly, no substantive progress has been made in the talks between the White House and the House in the last two weeks.
“Listen, this is not a game,” he added. “Jobs are on the line. The American economy is on the line, and this is a moment for adult leadership.”
The Speaker criticized the president for holding “campaign-style rallies” instead of engaging in serious talks.
Tuesday Reads: Media Reactions to Romney Revelations and Other NewsPosted: September 18, 2012 Filed under: 2012 presidential campaign, A My Pet Goat Moment, morning reads, The Bonus Class, U.S. Economy, U.S. Politics | Tags: Barack Obama, David Corn, leaked videos, Michael Dukakis, Mitt Romney, tank photos, the 47% 62 Comments
This is going to be mostly a link dump with little commentary, because I have a lot of news to share and I’m still tired from last night.
Yesterday was a day that will very likely go down in presidential campaign history along with the day Mike Dukakis posed for photos wearing a silly-looking helmet and riding in a tank. In a series of surreptitiously recorded videos/audios, we heard the real Mitt Romney–a man who truly believes that he and other wealthy people got where there are on merit alone and that those pathetic Americans who are not so “successful” are worthless, lazy drones who have the nerve to think we are entitled to food, shelter, health care.
Late last night, Romney finally responded to the firestorm over the leaked videos at a hastily called press availability. He looked desperate–his hair mussed and bags under his eyes, his expression sheepish yet defiant, but he stood by his statement at the May 2012 fundraiser that 47% of Americans are dependent on the government and pay no taxes.
For your reading pleasure, I’ve gathered some of the media reactions to yesterday’s stunning events, but before I get to those, there’s even more from David Corn this morning. After yesterday’s big scoop and his appearances on MSNBC last night, Corn released another episode from the Romney fundraiser bootleg videos: SECRET VIDEO: On Israel, Romney Trashes Two-State Solution
During the freewheeling conversation, a donor asked Romney how the “Palestinian problem” can be solved. Romney immediately launched into a detailed reply, asserting that the Palestinians have “no interest whatsoever in establishing peace, and that the pathway to peace is almost unthinkable to accomplish.”
Romney spoke of “the Palestinians” as a united bloc of one mindset, and he said: “I look at the Palestinians not wanting to see peace anyway, for political purposes, committed to the destruction and elimination of Israel, and these thorny issues, and I say there’s just no way.”
Romney was indicating he did not believe in the peace process and, as president, would aim to postpone significant action: “[S]o what you do is, you say, you move things along the best way you can. You hope for some degree of stability, but you recognize that this is going to remain an unsolved problem…and we kick the ball down the field and hope that ultimately, somehow, something will happen and resolve it.”
Romney did note there was another perspective on this knotty matter. He informed his donors that a former secretary of state—he would not say who—had told him there was “a prospect for a settlement between the Palestinians and the Israelis.” Romney recalled that he had replied, “Really?” Then he added that he had not asked this ex-secretary of state for further explanation.
Video at the Mother Jones link.
Also at Mother Jones, a list of likely guests at the Romney fund-raiser.
Joe Coscarelli at New York Magazine: How Jimmy Carter’s Grandson Helped Leak the Secret Romney Fund-raiser Video
The damning video of Mitt Romney telling a room of wealthy donors how he really feels about the freeloading 47 percent of Americans “who believe that they are entitled to health care, to food, to housing, to you-name-it,” among other candid things, has been floating around online in bits and pieces for three months, but didn’t hit the big time until it was published by David Corn at Mother Jones today. Credited as a “research assistant” on the story is James Carter IV, the grandson of former President Jimmy Carter, who has been toiling online as an opposition researcher and is “currently looking for work,” according to his Twitter bio. “I’ve been searching for clips on Republicans for a long time, almost every day,” said Carter this evening. “I just do it for fun.” But by connecting Corn with the mysterious uploader of the clip, Carter has uncovered his biggest story yet, one that could potentially affect the outcome of the election. (And get him a job.)
Carter told Daily Intel that he first noticed a portion of the video in which Romney discusses using Chinese labor while working at Bain Capital. That clip, uploaded by a YouTube user named “RomneyExposed” in late May, and then again in late August by an account called “Rachel Maddow” that has since been deleted, eventually made it to Buzzfeed and Daily Kos.*
Additional pieces of the tape were then added to a YouTube account called “Anne Onymous” starting three weeks ago. “There was a minor uproar about it on Twitter when I found [the first clip], so I kept doing research on it and that eventually led me to be able to narrow down who it originated from,” said Carter. Via Twitter, he contacted the person who claimed to have secretly taped and uploaded the video, and then sought to help publicize the remarks. “That seemed to be the purpose of [the filming] — to get it to a larger audience,” Carter said.
Now for those reactions…
Charles Pierce: The Worst Thing Romney Has Said About Americans Yet
Joan Walsh: Mitt Romney insults half the country. Walsh repeats her previous prediction that Romney “will never be president.”
Chris Cillizza: Mitt Romney’s Darkest Hour. Chris transmits what is probably the reaction of most Villagers–that the videos are just a distraction and won’t spell the end of Romney presidential campaign.
Jonathan Chait finally faces the reality that Romney is not a moderate Rockefeller Republican: The Real Romney Captured on Tape Turns Out to Be a Sneering Plutocrat
The New Republic staff: Three things we learned from the secret Romney video.
Right wing nut blogger Erick Erickson announced that he has given up on Romney winning the election.
Dave Wiegel: We Are the 47%: The Lousy Math Behind Romney’s Gaffe
Brad Plummer at the Wonkblog: Mitt Romney versus the 47%. Plummer explains why Romney is wrong about half of Americans being shiftless louts who contribute nothing to society.
David Graham at the Atlantic: Where Are the 47% of Americans Who Pay No Income Taxes?
Ezra Klein: Romney’s theory of the “taker class” and why it matters.
Ben Smith at Buzzfeed: The Long Strange Leak Of Mitt Romney’s 47% Video
The Guardian: Mitt Romney ‘victims’ gaffe: key players
In Other News…
The Nation: What’s Behind the U.S. Embassy Protests in Egypt
Reuters: Chicago teachers meet Tuesday to decide whether to end strike.
LA Times: ‘Innocence of Muslims’ doesn’t meet free-speech test
PBS News Hour: David Souter Gets Rock Star Welcome, Offers Constitution Day Warning
WaPo: US Aid to Egypt Stalled
WaPo: National Zoo welcomes baby panda