Saturday Reads: Austerity, Medicare, and Punishing the Baby Boomers

fiscal cliff fix

Good Morning!!

Following on Dakinikat’s post last night, The Austerity Plot, here are some more links about Jonathan Chait’s very very bad recommendation that Obama should cave on raising the Medicare enrollment age.

David Dayen’s reaction was immediate and shrill: Jon Chait’s Miserable Endorsement of Raising the Medicare Eligibility Age.

Let’s look at Chait’s reasoning. I would probably start with the fact that he’s not 64 or 65. My parents are, and until my dad reached Medicare in November, they were paying $2,500 a month on the private market for health insurance. So I’ll be happy to provide him with their phone number so he can tell them how it’s “tolerable” for them to spend two years more than they expected doing that.

But soft! Here are his actual reasons. One, Democrats have to accept concessions (that’s always a good strategic place from which to begin a negotiation!), and the scolds seem to like raising the eligibility age. So let’s give ‘em what they want. This is a bizarrely content-free assertion. The phrase “If Alan Simpson and Erskine Bowles wanted you to jump off the Brooklyn Bridge, would you do it?” springs to mind. Second, he thinks that Republicans will somehow forget that this only raises $100 billion, at most, over 10 years, and will then drop any demands to hit a particular number in the negotiations….

The one thing we know will be a side effect of increasing the Medicare eligibility age is that insurance premiums will skyrocket. It will make Medicare more expensive because they lose relatively healthy 65 and 66 year-olds from their risk pool, and it will make private insurance more expensive because they add relatively sick 65 and 66 year-olds to their risk pool. Insurers hate the idea for just this reason. As a result, everyone’s premiums will rise, and cost-shifting will ensue from the government to its citizens.

The original Shrill One, was even more shrill than usual.

…why on earth would Obama be selling Medicare away to raise top tax rates when he gets a big rate rise on January 1 just by doing nothing? And no, vague promises about closing loopholes won’t do it: a rate rise is the real deal, no questions, and should not be traded away for who knows what.

So this looks crazy to me; it looks like a deal that makes no sense either substantively or in terms of the actual bargaining strength of the parties. And if it does happen, the disillusionment on the Democratic side would be huge. All that effort to reelect Obama, and the first thing he does is give away two years of Medicare? How’s that going to play in future attempts to get out the vote?

As Dakinikat wrote, Beltway Bob immediately accepted Chait’s assessment of the likely “deal,” even though he explained very clearly last night as host of the Rachel Maddow Show that doing this would be insane and counterproductive.

Ed Kilgore defended Chait:

I do think it’s kind of important that progressives allow each other a bit of liberty in discussions about big fiscal issues: after all, even the Right-Wing Noise Machine is in a bit of disarray on the subject at the moment. I know some people think resisting anything that affects Social Security or Medicare benefits is the ultimate Red Line that cannot be crossed. Personally, my own fear is that in defending that Red Line, congressional Democrats will wind up making concessions on Medicaid and other low-income programs that in my opinion are more morally compelling than keeping Medicare precisely the way it is today.

Maybe my fears are misguided, or maybe I just don’t share the obsession of some liberals in keeping Medicare pristine as a potential model for a universal single-payer health care system somewhere in the distant future, even if that means today’s poor folks have to suffer as a lower priority.

Apparently, Kilgore doesn’t understand that millions of poverty stricken elders are on Medicare and that millions of middle class Americans rely on Medicaid for nursing home care in addition to Medicare. It’s not an either/or thing.

Atrios gave Chait the Wanker of the Day Award, and yesterday evening, Chait issued an “acceptance speech” that doubled down on his recommendations for Medicare cuts in a post that I personally found offensive–but then I’m one of those loser 65-year-olds, so what do I know?

I, along with millions of other losers, committed the horrendous crime of being born after WWII ended and thus became part of the despised population bomb called the “baby boom.” Never mind that we didn’t ask to be born when we were and that public officials have known about our huge numbers ever since 1960 at least, the problem is all our fault. Supposedly, Ronald Reagan fixed the problem by having us pay more into the system so that Social Security and Medicare would be there when we got old, but now that is all forgotten because the superrich need more money to sock away in foreign tax havens.

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Kenneth Baer and Jeffrey Liebman wrote about it in a NYT op-ed yesterday:

For decades we have known that the retirement of the baby boomers would be a monumental event for the economy. But now that it’s happening, many fiscal policy makers are acting as if the boomers are eternal teenagers and are turning a blind eye to how the boomers’ aging changes how we should approach economic policy. And this affects two of the central issues of the negotiations: how much the government should spend and how we can cut unemployment.

Consider the debate over spending. The Congressional Budget Office projects that if current policies continue, total federal spending will rise to 24 percent of gross domestic product in 2022. Republicans and Washington deficit hawks argue that this means spending is out of control, since over the past 40 years government spending has averaged 21 percent.

Their proposed solution is a cap on government spending as a percentage of the economy. Mitt Romney wanted to cap spending at 20 percent of G.D.P. Senator Bob Corker, Republican of Tennessee, has proposed a cap of 20.6 percent with Senator Claire McCaskill, a Democrat from Missouri. Just this week, Gov. Bobby Jindal of Louisiana, a 2016 Republican presidential aspirant, suggested an 18 percent cap.

These plans ignore the simple fact that you cannot repeal the aging of the boomers. The main reason expenditures are rising this decade is that spending on Social Security, Medicare and Medicaid is increasing by a whopping 3.7 percent of G.D.P. as the baby boomers age and retire. This demographic fact also has been driving increases in disability insurance payments as more knees give way and backs give out.

In addition, policy-makers need to be looking at unemployment differently, according to Baer and Liebman, but are they capable of doing that? Not likely. Read more about it at the link.

rich xmas

In other “news,” on Thursday, Fox News’ Monica Crowley (did you know she has a Ph.D.?!) claimed that Americans committed “national suicide” by re-electing Obama, because now the rich will have to pay more taxes.

“From a conservative perspective, November 6 was a national suicide,” Crowley asserted. “There is a very thin, fine, red line between us and total destruction of the American idea. That thin, red line was the Republican Party. If this party also commits suicide, this will be catastrophic.”
Raw Story (http://s.tt/1wd0V)

Charlie Crist has officially become a Democrat.

Former Republican Governor Charlie Crist announced his official switch from independent to the Democratic Party with a beaming Twitter post Friday night after a Christmas event at the White House.

Posing in a photo with an unidentified woman holding the official Florida voter registration papers, Crist tweeted he was “proud and honored to join the Democratic Party in the home of President @BarackObama!”

I wonder if he’s going to get a job in the administration? Or will he run for governor against Rick Scott?

Finally, Susie Madrak has a must-read post at Crooks and Liars: Obama Cheaps Out On Sandy Recovery to Prop Up Austerity Sham. It’s a quick read, so please go read it at the link.

That’s all I have for today. Now it’s your turn. What’s on your reading list?


There Should be a War on Faux News

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There is absolutely no reason why the Fox Propaganda and Lies Network should be allowed to call itself a News channel.  Even more evidence has come out today that FOX is more interested in Republican Politics than it is anything that remotely resembles journalism.

Bob Woodard dropped a little revelation on how Roger Ailes tried to recruit General Patreus as a presidential candidate in 2011.    There’s audio evidence so it’s not even a debatable story.

So in spring 2011, Ailes asked a Fox News analyst headed to Afghanistan to pass on his thoughts to Petraeus, who was then the commander of U.S. and coalition forces there. Petraeus, Ailes advised, should turn down an expected offer from President Obama to become CIA director and accept nothing less than the chairmanship of the Joint Chiefs of Staff, the top military post. If Obama did not offer the Joint Chiefs post, Petraeus should resign from the military and run for president, Ailes suggested.

The Fox News chairman’s message was delivered to Petraeus by Kathleen T. McFarland, a Fox News national security analyst and former national security and Pentagon aide in three Republican administrations. She did so at the end of a 90-minute, unfiltered conversation with Petraeus that touched on the general’s future, his relationship with the media and his political aspirations — or lack thereof. The Washington Post has obtained a digital recording from the meeting, which took place in Petraeus’s office in Kabul.

McFarland also said that Ailes — who had a decades-long career as a Republican political consultant, advising Richard M. Nixon, Ronald Reagan and George H.W. Bush — might resign as head of Fox to run a Petraeus presidential campaign. At one point, McFarland and Petraeus spoke about the possibility that Rupert Murdoch, the head of News Corp., which owns Fox News, would “bankroll” the campaign.

The analysis of this should be self-evident.  Eric Wemple has some great points to make.  Most of them come under the heading of Fox News is corrupt and nasty.

To listen to the exchange between McFarland and Petraeus is to come away with the distinct impression that McFarland was under specific and binding orders from Ailes. She repeatedly invokes Ailes’s name, his advice and his interest in the career of Petraeus. The mandate to return to Ailes’s New York office with a mouthful of feedback from Petraeus rings from these words of McFarland’s: “So what do I tell Roger when he says…?” She continues spelling out the rules of engagement — how she was supposed to present the advice, and how she was supposed to report back.

Given that dynamic, have a look at how Ailes responded when Woodward asked about the advice-giving mission:

In a telephone interview Monday, the wily and sharp-tongued Ailes said he did indeed ask McFarland to make the pitch to Petraeus. “It was more of a joke, a wiseass way I have,” he said. “I thought the Republican field [in the primaries] needed to be shaken up and Petraeus might be a good candidate.”

Ailes added, “It sounds like she thought she was on a secret mission in the Reagan administration. . . . She was way out of line. . . . It’s someone’s fantasy to make me a kingmaker. It’s not my job.” He said that McFarland was not an employee of Fox but a contributor paid less than $75,000 a year.

Such noble and classy details there from the head of Fox News. Woodward nails you sullying your employer and the industry of journalism, and you tar the messenger. That’s outrageous enough that it could dog someone as untouchable as Roger Ailes.

The details of the exchange are frankly beyond belief.  You can listen to them yourself .

Ailes’s craving for the respect and admiration of a military hotshot like Petraeus emerges with Memorex clarity in this recording. For instance, McFarland tells Petraeus that she has a request “directly from [Ailes] to you: First of all, is there anything Fox is doing right or wrong that you want to tell us to do differently.”

Unpacking the depravity in that one is a multi-part process.

No. 1: Real journalists don’t act as supplicants, no matter how wonderful and powerful may be the official they’re interviewing. Real journalists publish their journalism and move on to the next story. If people have problems with or plaudits for the work, they can send an e-mail.

No. 2: Note the promise in McFarland’s proffer. She invites the general to “tell us” to adjust coverage in whatever way he may see fit, in effect soliciting an order from a general. What an affirmation of journalistic independence.

No. 3: To which individuals has Ailes “indirectly” advanced this offer?

It’s no wonder the Brits are working to get Murdoch thrown out of the journalism business in the UK.  This is the behavior of a propagandist and kingmaker.

McFarland begins by promising Petraeus absolute discretion, saying that Ailes’s “deal with me was that I was only supposed to talk to you – and he is a little paranoid, so believe me.” However, the 90-minute conversation was recorded, and a digital copy of it somehow made its way into Woodward’s hands.

“I’ve got something to say to you directly from Roger Ailes,” McFarland is captured saying on the recording that has been posted in edited form on the Washington Post website. “I’m not running,” Petraeus snaps back.

McFarland, a Pentagon adviser to the Reagan administration, does not take no for an answer. The next time Petraeus is in New York, she says, he should come and “chat to Roger and Rupert Murdoch”, to which Petraeus, for whom this conversation is clearly not the first of its kind, replies: “Rupert’s after me as well.”

“Tell him if I ever ran … ” Petraeus laughingly says as the meeting is wrapping up. “I’d take him up on his offer. He said he would quit Fox.”

McFarland says that “the big boss” would “bankroll” the campaign – a clear reference to Murdoch. “The big boss is bankrolling it. Roger’s going to run it. And the rest of us are going to be your in-house.”

Something should be done about this, however, I’m not sure what can be done about it in a legal sense.  One hopes some of the Fox faithful would get the message but I’ve got no hopes there.   Any one who calls themselves a journalist–if they haven’t already–should disassociate themselves with this outfit quickly.  The rest of us just need to keep telling other people about  this business.  Fox news is biased, depraved, and deeply connected to right wing politics.  It is nothing more than a propaganda outpost for the worst of Republican policies.


Tom Ricks vs. Fox News, Take 2

What is the deal with this Tom Ricks story? Fox News sure is touchy these days. A Fox executive told the Hollywood Reporter that after his abruptly terminated interview yesterday, Ricks apologized for telling the truth about the network on the air.

Tom Ricks, a former Washington Post reporter and author of best-selling books Fiasco and The Generals, briefly spoke with FNC’s Jon Scott about the death of four Americans in Benghazi, Libya. In a brief interview, Ricks first said FNC “hyped” the embassy attack and said a bit later that “Fox was operating as a wing of the Republican Party” before Scott ended the interview.

Michael Clemente, executive vp, news editorial at FNC, tells The Hollywood Reporter that Ricks dodged Scott’s question (“When you have four people dead, including the first U.N. ambassador in more than 30 years, how do you call that ‘hype’?”).
“When Mr. Ricks ignored the anchor’s question, it became clear that his goal was to bring attention to himself — and his book,” Clemente said in an e-mail to THR. “He apologized in our offices afterward but doesn’t have the strength of character to do that publicly.”

But Ricks says the apology story is a big ol’ lie. From Politico:

Ricks told POLITICO that Michael Clemente, Fox’s executive vice president of news, made the claim he apologized privately because “when the facts aren’t on their side, they attack the person.”

“Clemente is making it up, and it is sloppy of Hollywood Reporter to not ask him for specifics — what exactly am I alleged to have said? — and also to seek a response from me,” Ricks wrote in an e-mail. “Why are they doing this? Because their MO is that when the facts aren’t on their side, they attack the person.”

Ricks told the Washington Post that

I had told the producer before I went on that I thought the Benghazi story had been hyped. So it should have been no surprise when I said it and the anchor pushed back that I defended my view.

I also have been thinking a lot about George Marshall, the Army chief of staff during World War II, and one of the heroes of my new book. He got his job by speaking truth to power, and I have been thinking that we all could benefit by following his example as much as we can.

After I went off the air I saw some surprised faces in the hallway. One staff person said she thought I had been rude. My feeling was that they asked my opinion and I gave it.

Ricks also told the Hollywood Reporter in an e-mail:

“Please ask Mr. Clemente what the words of my supposed apology were. I’d be interested to know,” he said. “Frankly, I don’t remember any such apology.”

Clemente responded, according to TPM:

“I’m surprised by the General’s utter dishonesty,” Clemente said. “I’ll refresh his memory – what he said following the segment was, ‘Sorry… I’m tired from a non-stop book tour.’ Perhaps now he can finally get some rest.”

Ricks is not a general, but he did write a book called The Generals.

You be the judge. I report, you decide. (This is an open thread.)


Tom Ricks Challenges Fox News on Beghazi; Interview Ends Abruptly

Tom Ricks, Pulitzer Prize-winning  journalist, author, and blogger at Foreign Policy appeared on Fox News this morning, where he was asked by talking head Jon Scott why John McCain has toned down his attacks on Susan Rice recently. Ricks opted to answer truthfully. From Raw Story:

“I think that Benghazi was generally hyped by this network especially,” Ricks explained. “And now that the [2012 presidential] campaign is over, I think [McCain] is backing off a little bit. They’re not going to stop Susan Rice from being secretary of state.”

At that point, Scott shifted the interview’s focus from McCain to defending his employer, asking Ricks, “How do you call that hype” when four Americans died in the Benghazi attacks?

“How many security contractors died in Iraq, do you know?” Ricks wondered.

“I don’t,” Scott admitted, seemingly at a loss for words.

“No, nobody does because nobody cared,” Ricks pointed out. “Several hundred died but there was never an official count done of security contractors dead in Iraq. So when I see this focus on what was essentially a small fire fight, I think — number one — I’ve covered a lot of fire fights, it’s impossible find out what happened in them sometimes.”

“And second, I think the emphasis on Benghazi has been extremely political, partly because Fox was operating as wing of the Republican Party,” the author added.

Oops! And suddenly the interview with the distinguished military expert was terminated.


This is an open thread.


Friday Reads: Sandy Aid, JFK, Real War on Women, and Fake War on Xmas

Good Morning!!

I hope everyone had a great day yesterday, regardless of how you spent your time.  My day was very quiet, because I had an upset stomach from some brussels sprouts I ate on Wednesday night.  My mom and I are going to have “thanksgiving” dinner at my sister’s place on Saturday, so we just hung out and relaxed.

It’s going to be a slow news day, obviously, but I’ll do my best to provide some interesting reading material.

The New York Times had a nice story about some help for Sandy victims that came from a surprising place–Rikers Island.

On the night that the storm roared into the city, Dora B. Schriro, the correction commissioner, slept on a couch in her office at the Rikers Island jail, bracing for flooding and reassuring inmates and employees that the island would weather the storm.

The next morning, the vast jailhouse complex was mostly unscathed, but Ms. Schriro was stunned by the devastation the storm had wrought elsewhere.

So she decided to put her jail, and those who call it home, to work. Inmates did 6,600 pounds of laundry for people in emergency shelters. The jail supplied generators and gas to fuel them to neighborhoods in the dark, and donated long underwear usually given to inmates. And officers with medical training provided emergency care to victims.

“There was a lot of loss,” said Ms. Schriro, who personally pitched in at food lines on the Rockaway Peninsula, in Queens. “It was our responsibility and opportunity to jump in and help.”

I was disappointed that the story doesn’t say anything about how the inmates felt about all this.

Jail officials did not make inmates available for interviews about the role they played in helping storm victims, but Ms. Schriro said, “I’m confident they knew what they were doing.”

I’m not sure what to think about that.

Somewhat lost in the shuffle of yesterday’s holiday was the fact that it was also the 49th anniversary of the assassination of President John F. Kennedy. Journalist and assassination researcher Jefferson Morley wrote a piece about it at Huffington Post: JFK at 49: What We Know For Sure. Morley reports on new developments in the JFK story since the article he wrote in 2010 called The Kennedy Assassination: 47 Years Later, What Do We Really Know?

One nondevelopment is that “cultural elites” continue to deny any possibility that the official story of JFK’s murder could be flawed, despite new evidence that has been revealed in recent years. Morley writes that there is no real evidence of a CIA conspiracy to assassinate JFK, there is a great deal of evidence of “CIA negligence.” From the HuffPo link:

The truth is this: Lee Harvey Oswald was well known to a handful of top CIA officials shortly before JFK was killed.

Read this internal CIA cable (not declassified until 1993) and you will see that that accused assassin’s biography–his travels, politics, intentions, and state of mind–were known to top CIA officials as of October 10, 1963 six weeks before JFK went to Dallas for a political trip….

In the fall of 1963, Oswald, a 23-year old ex-Marine traveled from New Orleans to Mexico City. When he contacted the Soviet embassy to apply for a visa to travel to Cuba, a CIA surveillance team picked up his telephone calls. A tape recording indicated Oswald had been referred to a consular officer suspected of being a KGB assassination specialist.

Winston Scott, the respected chief of the CIA station in Mexico City, was concerned. He sent a query to CIA headquarters, asking who is this guy Oswald?

Oswald had been on the agency’s radar since 1959 when he defected to Russia, and they had a “fat file” on him; nevertheless, the CIA told Scott that Oswald had “matured” and there was nothing to worry about.

This optimistic assessment was personally read and endorsed by no less than five senior CIA officers. They are identified by name on the last page of the cable. Their names–Roman, Tom Karamessines, Bill Hood, John Whitten (identified by his pseudonym “Scelso”), and Betty Egeter–were kept from the American public for thirty years. Why? Because all five reported to deputy director Richard Helms or to Counterintelligence Chief James Angleton in late 1963. Because of “national security.”

Read much more at the HuffPo link. Not too many American still remember November 22, 1963 clearly, and as Morley says that dark day in Dallas “seems to be fading in America’s collective consciousness.”

It’s looking like once the final tallies from the presidential election are complete, Mitt Romney will have won about 47 percent of the vote.

The legacy of Mitt Romney’s presidential campaign will be marked with by the number 47. Not only the 47 percent of voters that he notoriously dismissed during a fundraising event, but also by the 47 percent of voters who chose to support him. Analysts predict that Romney will have won under 47.5 percent of the popular vote when the final tallies come in, compared to President Barack Obama’s 51 percent.

Romney characterized 47 percent of American voters as dependent on big government and therefore sympathetic to the Democratic platform. Instead, the election proved that the conservative Republican platform could not make a strong enough appeal to the demographics outside of its own traditional backing.

What could be more appropriate?

This one is for Dakinikat: Why Black Friday Is a Behavioral Economist’s Nightmare. At New York Magazine, Kevin Roose writes:

The big problem with Black Friday, from a behavioral economist’s perspective, is that every incentive a consumer could possibly have to participate — the promise of “doorbuster” deals on big-ticket items like TVs and computers, the opportunity to get all your holiday shopping done at once — is either largely illusory or outweighed by a disincentive on the other side. It’s a nationwide experiment in consumer irrationality, dressed up as a cheerful holiday add-on.

As Dan Ariely explains in his book, Predictably Irrational, “We all make the same types of mistakes over and over, because of the basic wiring of our brains.”

This applies to shopping on the other 364 days of the year, too. But on Black Friday, our rational decision-making faculties are at their weakest, just as stores are trying their hardest to maximize your mistakes.

Read about all the potential shopping booby traps at the link.

Here’s a horrifying update in the global war on women: Saudi Arabia implements electronic tracking system for women

RIYADH — Denied the right to travel without consent from their male guardians and banned from driving, women in Saudi Arabia are now monitored by an electronic system that tracks any cross-border movements.

Since last week, Saudi women’s male guardians began receiving text messages on their phones informing them when women under their custody leave the country, even if they are travelling together.

Manal al-Sherif, who became the symbol of a campaign launched last year urging Saudi women to defy a driving ban, began spreading the information on Twitter, after she was alerted by a couple.

The husband, who was travelling with his wife, received a text message from the immigration authorities informing him that his wife had left the international airport in Riyadh.

“The authorities are using technology to monitor women,” said columnist Badriya al-Bishr, who criticised the “state of slavery under which women are held” in the ultra-conservative kingdom.

Women still have a very very long way to go, as we have learned here in the supposedly “advanced” U.S. over the past few years.

But never mind the serious problems that face humanity, the wingnuts at Fox News are focused on the supposed “war on xmas.” From TPM:

In the days before Thanksgiving, Fox filled its shows with dire, sometimes terrifying segments about all the threats surrounding the merriest season of the year. There’s the eradication of free speech by atheist “loons,” the possibility of choking on our food, the diseases spread on airplanes, and the endless depression that comes from Christmas commercials.

If we even make it to Christmas, that is. Fox’s morning man Bill Hemmer charted the possibility that the “apocalypse” would arrive on Dec. 22, and just how sad it will be when we all get wiped out, leaving all those unopened presents under the tree.

Here’s a mash-up of Fox coverage of the “war,” courtesy of TPM.

That’s all I’ve got for now. I hope you found something to your liking. Now what’s on your reading list for today.