Why Did Republicans Shut Down the FAA?

Somehow I missed this story on Saturday, what with all the other horrors that have been in the news lately. House Republicans have shut down the Federal Aviation Administration, costing taxpayers millions in uncollected taxes and putting 4,000 people out of work immediately, with 90,000 jobs in jeopardy.


From the AFL-CIO Now Blog

…House Republicans refused to pass a funding authorization bill, money for airport improvements has dried up and construction workers at many airports have been sent home.

Republicans grounded the FAA because they want to take away Democratic union elections for of aviation and rail workers.

Congress could have passed temporary spending authority for the FAA, as it has 20 times in the past without controversy. But like their tactics on debt ceiling negotiations, Republicans are demanding their way at any cost.

Not only is the FAA shutdown costing jobs, but it’s costing the federal government $200 million a week in uncollected airline ticket fees. That lost revenue is added to the national debt Republicans claim they are so concerned about. On top of that, instead of reducing ticket prices, the airlines are pocketing the fees.

The shutdown is putting construction projects on hold all over the country. In the San Francisco bay area, for example,

About 60 employees of Devcon Construction were set to show up at Oakland International Airport on Monday to continue working on the airport’s brand-new air traffic control tower.

That is, until they were told not to, until further notice. “We were informed Friday to stop all construction activity,” said Dan Anello, a project manager at the Milpitas-based company.

That was when, the House, in its infinite wisdom, refused to reauthorize the Federal Aviation Administration’s operating authority, resulting in the partial shutdown of the agency, the halting of funds for dozens of similar projects nationwide, and further additions to the nation’s unemployment rolls.

If you Google, you’ll find lots of similar stories. According to the Washington Post, the shutdown is not going to end anytime soon.

Though planes continued to fly unhindered nationwide, a dispute about service to a handful of tiny airports crippled Federal Aviation Administration operations for the third day Monday, costing the agency an estimated $30 million a day.

With House Republicans and Senate Democrats apparently in locked positions, and compromise an elusive pursuit on Capitol Hill this month, no one was ready to predict when funding might be restored to the federal agency.

“Don’t hold your breath,” advised one Senate staff member, who spoke on the condition of anonymity.

the $30 million per day is from lost tax revenues.

The Christian Science Monitor confirms that the dispute involves Republican efforts to hinder union organizing.

Democrats said the real issue is that Republicans are insisting Democrats accept a host of controversial provisions added to a long-term FAA spending bill approved by the House in April. Among their key differences is a GOP proposal sought by industry that would make it more difficult for airline workers to unionize.

The Senate passed its own long-term funding bill in February without the labor provision. Democrats insist the House must drop the provision. They’ve also accused Republicans of tying the elimination of rural air subsidies to their extension bill as a means to prod Democrats to make concessions on the labor issue.

The transformation of the U.S. into a third world country through the Shock Doctrine is certainly moving rapidly these days. The shocks are coming so quickly you barely have time to catch your breath before the next one hits.


How Badly Does the World Need iPads?

Man poses as Apple's Steve Jobs at protest in Hong Kong

Are these gadgets really worth the sacrifice of workers’ lives? I admit I’m not an Apple enthusiast, but I don’t think so. Last year there was a series of suicides at Foxconn plants and on Friday, there was a fatal explosion at a Foxcomm iPad factory in Chengdu, China, that killed two workers and injured 15 others. Today a third employee died from injuries sustained in the blast.

Company officials said the explosion occurred on Friday May 20 in one of the polishing workshops at the factory, and that the initial finding of a joint investigation task force led by government officials and law enforcement authorities was that combustible dust exploded in a duct.

A little more detail from Mashable.com:

…the Chinese government in Chengdu has taken over the plant, censoring the information flow to the extent that local newspapers aren’t reporting about it.

With numerous workers committing suicide at the company’s Shenzhen-based iPad plant last year, Foxconn attempted to remedy the situation by giving them raises, but still needed to increase the production capacity to meet increasing demand. As a result, the new factory was built, an enormous eight-building complex hastily constructed in a record-breaking 70 days to accommodate the voracious demand for the iPad 2.

Soon after the factory was built…Apple’s inspection team visited the facility, taking two days to inspect the buildings, production lines and “especially the workers’ dormitories.” After its inspection, Apple approved the plant for manufacturing iPads.

After the suicides in 2010, the group Students and Scholars Against Corporate Misbehavior (SACOM) investigated the factories and produced a report (pdf) that documents the horrors of the working conditions in Foxconn’s factories.

According to the Sydney Morning Herald, the study found that slave labor-type conditions are still in effect at the factories. Workers are now forced to sign “no-suicide pacts,” and they are routinely humiliated by “military-style managers.” They may have to work as much as 100 hours of overtime per month, and are still not paid a living wage–they earn only about $186 per month. And Foxconn “routinely” fails to pay workers the correct amounts they have earned. This is after Apple visited the factories and approved the wages and working conditions!

Conditions at Foxconn’s two Chengdu factories, which exclusively produce Apple iPads, were among the worst reported. While nets have been installed to catch suicidal workers, factory staff are reportedly required to sign “no-suicide” pacts which also give licence to Foxconn to institutionalise them if it sees fit.

Workers at Chengdu say they are routinely humiliated and scolded by management. One was forced to stand in a corner with his hands behind his back because he giggled with a colleague. Others have been required to write confession letters to their supervisors after making mistakes and in some cases read the letters out in front of colleagues.

“Some of my roommates weep in the dormitory. I want to cry as well but my tears have not come out,” said 19-year-old Chengdu worker Chen Liming.

Ah Ming, 19, who produces cases for the iPad, said he stands for at least 14 hours a day. He wakes up at 7am to queue for the bus to the factory and it is 9pm by the time he returns home every evening.

The report also found that workers don’t

have adequate protections to safeguard against occupational health and safety issues such as aluminium dust and harsh reactions from chemicals used in the production process.

“I’m breathing in dust at Foxconn just like a vacuum cleaner. My nostrils are totally black every day,” one male worker said.

From the aptly named “Crave” blog at Cnet.com:

SACOM researchers visited Foxconn plants in Chengdu, where iPads are produced; in Chongqing, a smaller facility making mostly HP products; and Foxconn’s huge campus in Shenzhen, where half a million workers assemble a variety of computers, mobile phones, and additional products for Apple, HP, Nokia, Dell, and others. The researchers claim to have observed a number of problems at the Chengdu facilities in particular:

Workers do not have adequate training on usage of chemicals and do not have regular on-post health examinations. A number of interviewees even complain they suffer from allergy, but the management does not probe into the adverse health impacts of workers. Workers also highlight the problem of poor ventilation and inadequate personal protective equipment.

While SACOM notes the lack of ventilation as a possible threat to workers’ respiratory health, it appears that it may also have been a contributing factor to Friday’s explosion, which reportedly was centered in the “polishing” section of Foxconn’s facilities.

According to the report, the polishing department is filled with aluminum dust and there is inadequate ventilation.

Both aluminum and magnesium are commonly used ingredients in industrial polish–magnesium is a highly flammable metal used in fireworks, flares, and flash powder. A buildup of such dust due to improper ventilation could have created dangerous conditions.

I don’t know about you, but I’m very glad I don’t have an iPad, because if I did I’d be tempted to trash it right about now. If this is what it takes to produce a gadget that appears to be little more than a glorified cell phone that doesn’t do much other than provide entertainment and status to its users, I say it’s not worth it.


Wisconsin! Send them Packing!

Wisconsin Governor Scott Walker’s war on public unions may cost the Republicans a few seats.  One positive sign is the out come of  a recent special election.

Democrat Steve Doyle defeated Republican John Lautz for the Wisconsin District 94 Assembly, flipping a seat held by Republicans for 16 years in a race that focused attention on Republican Gov. Scott Walker‘s plan to curtail collective bargaining right for most public employees.

With 92 percent of precincts reporting, Doyle won 54 percent to 46 percent, based on unofficial results in Tuesday’s special election. The race flips a GOP Assembly seat for the Democrats, who remain in the minority.

The seat was previously held by Mike Huebsch, who Walker picked in January to serve as secretary of administration. Huebsch was first elected in 1994.

Will this be a harbinger of what will happen in the recall elections?  Many of those Republicans subjected to recall are in districts traditionally represented by Dems.  This sure looks like a backlash that could signal things to come.  Interestingly enough, this is also despite huge amounts of spending by corporations hiding behind ‘free speech’ political ads.

Doyle actually won despite “a barrage of television and radio attacks by third-party groups, along with mailings from the Jobs First Coalition, a Brookfield, Wis.-based group tied to Scott Jensen, the former Republican state Assembly speaker who left office in 2002 amid misconduct allegations.” “I look at it as a rejection of attack ads,” he told the La Crosse Tribune.

CBS news reports that this is a basically rural district which has traditionally been represented by a Republican. There were other Republican gains in the election, however.

The race turned ugly in the last few weeks after outside interest group Jobs First Coalition sent out mailers claiming Doyle had not paid property taxes on time in 2009. Doyle and several others, including La Crosse County corporation counsel, confirmed the taxes were paid on time. The state Democratic Party has asked for a criminal investigation into the mailers.

The candidates’ main disagreement was over Walker’s bill to strip most public employees of collective bargaining rights. Doyle firmly opposed the move, while Lautz said it was needed to “get our fiscal house in order.”

“I heard a lot of comments at the door with regard to Gov. Walker,” Doyle said. “The people were in support of most of the goals, but definitely not at all the methods the governor had used. They’re looking for bipartisanship, not dictatorship.”

Despite losing the District 94 seat, Republicans managed to increase their majority in the state Assembly Tuesday night.

I’m still anxious for the recall elections.  I’m thinking it will be the best way to see if Walker’s ideas have support or not.  This is especially important giving the increasing unpopularity of the Tea Party.   A CNN poll in March showed that nearly half of voters have a negative view of the Tea Party and its candidates.


Monday Reads

Good Morning!

I’ve almost gotten shy about going out to search for links these days.  Most of the political and economic news is disheartening so I thought I’d try to mix it up today with some good stuff and disheartening stuff.  Hopefully, you can find some things to share with us too.

You may want to start out your day arming yourself with “Five Myths about Planned Parenthood” in case any one in your sphere of influence starts spewing some of the ridiculous memes passed around by the right wing. This was in WAPO over the weekend and was written by Clare Coleman worked for America’s best known provider of family planning and health services.  I liked number five.

Three million patients each year visit Planned Parenthood’s more than 800 health centers in every state, in big cities and small towns. In some areas, Planned Parenthood and the Title X-funded system are the only sexual health providers for hundreds of miles.

We screen people for high blood pressure, anemia and diabetes; we counsel them about smoking cessation and obesity; we connect them to other primary-care providers and social services. The huge response to the attack on family planning and on Planned Parenthood — hundreds of thousands of Americans signing petitions, showing up at rallies, calling Congress – is extraordinary. But it doesn’t surprise me. One in five American women has gone to Planned Parenthood at some point in her life, for respectful, compassionate, quality care. And now those Americans are going to have our back.

I feel like I’ve turned into an IMF groupie by putting up yet another link to them shortly after featuring one of their studies on the dominance of the finance sector, but here I go again.  I do spend time gleaning data from their site so maybe it’s just that I keep bumping into things.  The IMF says we have a Global Job Crisis.

At the end of his magnum opus, The General Theory, Keynes stated the following: “The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes”.

Not everyone will agree with the entirety of this statement. But what we have learnt over time is that unemployment and inequality can undermine the very achievements of the market economy, by sowing the seeds of instability. In too many countries, the lack of economic opportunity can lead to unproductive activities, political instability, and even conflict. Just look at how the dangerous cocktail of unemployment and inequality—combined with political tension—is playing out in the Middle East and North Africa.

Because growth beset by social tensions is not conducive to economic and financial stability, the IMF cannot be indifferent to distribution issues. And when I look around today, I am concerned in this regard. For while recovery is here, growth—at least in the advanced economies—is not creating jobs and is not being shared broadly. Many people in many countries are facing a social crisis that is every bit as serious as the financial crisis.

Unemployment is at record levels. The crisis threw 30 million people out of work. And over 200 million people are looking for jobs all across the world today.

The jobs crisis is hitting the young especially hard. And what should have been a brief spell in unemployment is turning into a life sentence, possibly for a whole lost generation.

In too many countries, inequality is at record highs.

As we face these challenges, remember what we have accomplished. Under the umbrella of the G20, policymakers came together to avoid a financial freefall and probably a second Great Depression.

Today, we need a similar full force forward response in ensuring that we get the recovery we need. And that means not only a recovery that is sustainable and balanced among countries, but also one that brings employment and fair distribution.

This is part of a speech given by Dominique Strauss-Kahn, Managing Director, International Monetary Fund. He argues that financial sector reform is central to the problem of getting back on track.  It’s worth reading the entire thing or you can watch the video here.  Occasionally, I remember why I thought it was important to study economics.  This is one of those times.

The so-called “Gang of Six” is still anxious to put social security on the bargaining table. I still can’t figure out why every time some politician wants to talk about the Federal Deficit--in this case Senator Mark Warner–they mistakenly include the stand-alone program.

Including Social Security in the Gang of Six package appears to be a concession by Democrats made in exchange for agreement to raise some revenue by Republicans. But liberals in the Senate and House have made clear they will not stand for any cuts to benefits.

The 2012 budget passed by the House on Friday does not include reforms for Social Security. House Budget Committee Chairman Paul Ryan (R-Wis.) instead called for a trigger in the budget whereby the president and Congress would have to propose solutions once the Board of Trustees certifies the program is in trouble. Presidet Obama in his 2012 budget and in a speech last week did not lay out plans to reform Social Security.

Warner said the Gang is “very close” to an agreement that includes spending cuts and tax increases such as be eliminating the home mortgage tax deduction.

“We are going to make everybody mad with our approach,” he said.

Warner made clear he is opposed to the House Republican 2012 budget’s reliance on cuts to Medicare—he called it a “massive transfer of responsibility onto our seniors”– but he did not say how the Gang of Six will approach the massive entitlement program.

Please join me as I scream.  How stupid do they think we are?

Ninety-one year old Pete Seeger will be joined by David Amram, 80, and Peter Yarrow, 73 on the stage to inspire young people to be active in political and social justice movements.  Yarrow had just returned from a series of rallies in Wisconsin.

The three artist-activists say they are fired up by recent protests — from Egypt to Wisconsin — and by the enthusiasm of their youthful kin, who will join them onstage.

“I do have the feeling that the kind of energy we felt in the ’60s is in the air now,” Mr. Yarrow said. “That energy seems to be reigniting itself.”

That concert should be a treat.  It’s nice to see these guys seem to never tire of singing songs of justice. It’s important that a new generation hear these truly American songs.  I was interested in reading that many kids and grandkids of these folk singers are now in the family business and may show up on stage with them now and then.

Okay, this is something that kinda surprised me from the WSJ: “Greenspan Steps Up Call to End Bush-Era Tax Cuts”.  I still haven’t figure out why any one thinks he’s still relevant, but oh, well.  At least, he’s on the right side of this one.

Former Fed Chairman Alan Greenspan is stepping up his call for Congress to let the Bush-era tax cuts lapse.
In an appearance Sunday on ABC’s “Meet the Press,” Mr. Greenspan used his strongest words yet to urge lawmakers to let them expire. The risk of a U.S. debt crisis, he said, is just too big. Mr. Greenspan, who retired from the Federal Reserve in 2006, had endorsed the cuts back in 2001 championed by then-President George W. Bush.

“This crisis is so imminent and so difficult that I think we have to allow the so-called Bush tax cuts all to expire. That is a very big number,” he said, referring to how much the U.S. government could save from letting income taxes go back up to levels last seen under former President Bill Clinton.

Mr. Greenspan was talking about re-imposing the taxes for all Americans. The Treasury has estimated that a permanent extension of all the Bush tax cuts would cost $3.6 trillion over the next decade. Allowing taxes to increase on those in the top income brackets would take the cost to the government down to $2.9 trillion, according to White House estimates.

CBS news has done some data gathering on taxes as part of its Tax Day coverage: Wealthy Americans see drop in federal taxes; High-earning Americans pay less in taxes than in previous years; nearly half of U.S. households will pay no income taxes at all.

The Internal Revenue Service tracks the tax returns with the 400 highest adjusted gross incomes each year. The average income on those returns in 2007, the latest year for IRS data, was nearly $345 million. Their average federal income tax rate was 17 percent, down from 26 percent in 1992.

Over the same period, the average federal income tax rate for all taxpayers declined to 9.3 percent from 9.9 percent.

The top income tax rate is 35 percent, so how can people who make so much pay so little in taxes? The nation’s tax laws are packed with breaks for people at every income level. There are breaks for having children, paying a mortgage, going to college, and even for paying other taxes. Plus, the top rate on capital gains is only 15 percent.

There are so many breaks that 45 percent of U.S. households will pay no federal income tax for 2010, according to estimates by the Tax Policy Center, a Washington think tank.

The sheer volume of credits, deductions and exemptions has both Democrats and Republicans calling for tax laws to be overhauled. House Republicans want to eliminate breaks to pay for lower overall rates, reducing the top tax rate from 35 percent to 25 percent. Republicans oppose raising taxes, but they argue that a more efficient tax code would increase economic activity, generating additional tax revenue.

The row of shotguns featured on the first season DVD set of Treme are set to be demolished as blight.

New Orleans is abuzz with the second season of Treme about to start up on HBO.  I have to admit that I have not watched it since I’m still working through my dose of PTS from Katrina and the aftermath. However, for those of you that are fans of the show, you can get it now on DVD and you can get a bit of a taste in what’s in store for you in season two from this story from the TP.  The show evidently ended last season with the city’s evacuation.  That’s something I will NEVER forget.  The show has been great for the city, overall and it’s producers have taken on a lot of causes around here including a fight to save some historic properties featured in the series’ promotions.  Just thought I’d add some insight into what the production brings to the city including its musicians.  Here’s a little drama from Hollywood South.

… production money is being spent daily in New Orleans for locations, for equipment, material, labor and talent. In the first two seasons, for example, about $2 million in music licensing money was paid for the rights to songs by New Orleans artists, alone. Such expenditures — with or without any charity component — are the crux of the real economic relationship between a film company and the community in which it works. It is a straight-up transaction. We come here to shoot a movie. We pay a variety of local vendors, government fees and individuals to do it. And for virtually every other movie shot in Louisiana, that is it — end of story.

Thought I’d end with a treat from Pete Seeger to get you through your coffee:


What’s on your reading and blogging list today?


Why Obama and his Banker Bosses Want a Depression

Via Susie Madrak at Suburban Guerilla, Economist and historian Michael Hudson explains why U.S. elites are trying to bring about a full-fledged depression (December 16, 2010).

From the transcript:

JAY: So President Obama’s deficit commission has reported. The press, the media, and most of the political punditry all seem far more worried about government debt than depression. Why?

HUDSON: Because they’re essentially appointed by the banking interest. When the government runs into debt, it has to borrow from the banks. They want to scale down government debt in order to scale down government taxes. So it’s part of a one-to punch against the economy, basically. To the deficit commission, a depression is the solution to the problem, not a problem. That’s what they’re trying to bring about, because you need a depression if you’re going to lower wages by 20 percent.

JAY: And why do they want to do that?

HUDSON: Because they have the illusion that if you pay labor less, somehow you’re going to make the economy more competitive, and the economy can earn its way out of debts–meaning their employers, the banks and the companies–and make more profits and pay more bonuses and stock options, and somehow their constituency, Wall Street and the corporate economy, will become richer if they can only impoverish the economy.

So essentially you can think of it as between a parasite and the host economy. A smart parasite in nature actually is in a symbiosis with the host and tries to steer to new food. It wants the host to find new food, doesn’t want it to get bigger; the parasite wants itself to get bigger. But to do that, it has to take over the host’s brain and make the brain think that the parasite, in this case the host, is the industrial economy, the real economy, production and consumption.

The parasite is basically the financial sector. That’s the deficit commission. That’s the largest financier of the Obama administration. Obama appointed Wall Street lobbyists for the deficit commission, and basically their mind is a one-track mind: reduce labor’s wages. So what we have here is a dumb parasite, not a parasite. That’s the problem that’s facing the American economy today. The problem is that the parasite’s not only taken over the brain of the economy, which was supposed to be the government, but it’s taken over its own brain in the process. And it actually imagines that corporations can make larger profits and the industrial–the financial system can survive if they just bring on a depression. In fact, it’ll be the exact opposite.

Hudson predicted the housing crash in a cover story in Harpers’ Magazine in 2006: The New Road to Serfdom.

Another article he wrote for Harpers’ in 2005 was influential in killing Bush’s push for privatization of Social Security: The $4.7 Trillion Pyramid: Why Social Security won’t be enough to save Wall Street

It looks like the elites are already succeeding in turning the U.S. into a third world country. According to the LA Times, Swedish giant Ikea opened a plant in Virginia in order to take advantage of the U.S.’s slave wages and hostile atmosphere for union organizing.
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Steve Benen says that isn’t supposed to happen here in the “land of opportunity,” but according to Professor Hudson, that’s exactly what our government and the top 1% want.