Wednesday, January 26, 2011

Fear of Fracking

Last week, the Murrysville (Pennsylvania) Council had an overflow crowd at a hearing to receive public comment on a proposed ordinance on gas drilling.

Usually, such routine functions of a small town government have about the same interest and attention from its residents as watching paint dry. Many Americans seem to be indifferent about participating in its democracy. Even presidential elections in recent years have only persuaded
little more than half of its voting age population to turn out at the voting booths.

A friend of mine asked me to join her at the hearing since she was scheduled to be one of those offering pubic comment. We decided to get there early just in case to make sure we got a good seat. But we were too late. Despite cold weather and questionable road conditions, the council room was already filled to capacity and fearing a violation of the fire code, the remaining attendees were offered folding wooden chairs to watch the proceedings from the front lobby - some through the open double door into the meeting room and others watching the video monitor showing the meeting as covered by the local cable access channel.

As more people tried to squeeze into the lobby, those of us near the entrance door to the meeting room were asked to move forward and closer together. The resulting squeeze of humanity inside that lobby made for a much worse fire code violation than the one they were worried about in the council room. But not wanting to tell some people they had to leave, the powers-that-be winked and looked the other way.

At one time not long ago, the words “Marcellus Shale” would only be shared in conversation among those dealing in the field of geology. But since then, the words have been associated with a source of abundant locally produced natural gas and the jobs to go with it. More recently, the words have been linked to concerns about gas drilling polluting local water supplies and making people and their farm animals sick.

Last summer,
HBO premiered the documentary Gasland and introduced us to the special method used to extract this gas called hydraulic fracturing or "fracking".

Hydraulic fracturing or "fracking" is a means of natural gas extraction employed in deep natural gas well drilling. Once a well is drilled, millions of gallons of water, sand and proprietary chemicals are injected, under high pressure, into a well. The pressure fractures the shale and props open fissures that enable natural gas to flow more freely out of the well.

I found the documentary to be compelling watching and urged others to watch it in one of my previous postings, Please Watch 'Gasland'. (Now available on DVD) It is hard to watch this movie and not feel sympathy for the people who most likely had their well water supply polluted with the toxins that make up the fracking fluid.

But for those living where the Marcellus Shale drilling is likely to occur, they are feeling fear. Fear that some of the bad experiences that others have endured from the drilling may happen to them.

So now we get the answer on why all of those people were so motivated to witness and speak up at the Murrysville Council hearing. It was fear.

They know of other communities who welcomed the gas drilling with open arms but later questioned,
Marcellus Shale gas: A blessing or curse?

For the many farmers in the area, the prospect of collecting a royalty from a natural gas well is exciting.

But for others, there is a real fear that the side effects of natural gas drilling — from polluted water wells to potentially good paying jobs that will take workers away from farms — will outweigh the benefits.

Obviously not all of the drilling will cause any of the problems these people fear. But if something does happen to their water, is there anybody there to protect them? On a federal level, the Environmental Protection Agency (EPA) is supposedly there to protect their water. But the federal laws are so riddled with loopholes that
proving EPA jurisdiction can be either impossible or impractical.

Thousands of the nation’s largest water polluters are outside the Clean Water Act’s reach because the Supreme Court has left uncertain which waterways are protected by that law, according to interviews with regulators.

As a result, some businesses are declaring that the law no longer applies to them. And pollution rates are rising.

Another loophole exempts the oil and gas industry from the Safe Water Drinking Act - a loophole that Congress is trying to close.

The Fracturing Responsibility and Awareness of Chemicals Act (H.R. 2766), (S. 1215) -- dubbed the FRAC Act--was introduced to both houses of the 112th United States Congress on June 9, 2009, and aims to repeal the exemption for hydraulic fracturing in the Safe Drinking Water Act. It would require the energy industry to disclose the chemicals it mixes with the water and sand it pumps underground in the hydraulic fracturing process (also known as fracking), information that has largely been protected as trade secrets. Controversy surrounds the practice of hydraulic fracturing as a threat to drinking water supplies. The gas industry opposes the legislation.

So if the feds don’t have jurisdiction over protecting our water from being polluted by gas well drillers, who does? The answer is that the individual states must assume this duty. For those who believe that the federal government should stay out of the regulating business and leave it to the states, that is a good thing. But state regulation instead of federal regulation has two significant drawbacks here. One is that instead of a uniform law protecting all states equally, there is a hodgepodge of different state laws of differing effectiveness in protecting its people.

In Pennsylvania, it’s the Oil and Gas Act from 1984 which predates the use of fracking to to drill for gas.

Section 208: Protection of Water Supplies (58 P.S. § 601.208)
If, during the drilling and extraction process, a well operator pollutes or diminishes a public or private water supply, the operator is obligated to restore or replace that water supply.
Fair enough. But how do you replace the water supply of someone whose well water has been polluted? Living off of water that must be transported in is not a satisfactory replacement.

Section 505: Penalties (58 P.S. § 601.505)
A violation of the Act is a summary offense and is punishable by a fine of not more than $300 or imprisonment of not more than 90 days, or both.
This is obviously not an adequate punishment for someone who would say, pollute the water supply of a whole community.

This brings us to the second drawback of state enforcement. With state governments running deficits and needing to cut services, manpower and resources to enforce these laws have been cut to the bone. Much of the frustration of the affected landowners shown in Gasland was due to an inadequate or non-existent response from the state agencies.

So can the citizens of Murrysville ask their Council to help with the regulation the states cannot or will not do? In most cases
the answer is no.

There is interest among municipal officials to use zoning and subdivision and land development ordinances to regulate gas drilling and extraction. To a large extent, the Pennsylvania Oil and Gas Act preempts local regulation and puts regulatory authority into the hands of the PA Department of Environmental Protection.
It appears that there are two extreme views when in comes to deciding whether we want to allow the oil and gas companies to use this relatively new method of hydraulic fracturing or fracking to extract natural gas which entails some risk to our water supplies.

In one camp, we have those who have the most to financially gain from the drilling and want this to happen with the least amount of interference from those pesky regulations. Surely we can trust the drillers to do it right. Just like we trusted BP to do it right?

In the other camp, we have those who are fearful that the existing regulations are too weak and that their enforcement will be lax. The only way for them to deal with the fear of fracking is to try and have the drilling banned altogether in their communities.

But past legal precedent has shown that totally banning a legal activity such as gas drilling is not likely to stand up in court.

So this only leaves a middle position of allowing the drilling but making sure that there are enough regulations with teeth in them along with adequate remedies against the drillers in case something goes wrong. This means that in Pennsylvania, we need to persuade our state legislators to strengthen the provisions of the existing Oil and Gas Act to get them up to date with the newer fracking technology.

And last but not least, we need to persuade our members of Congress to pass H.R. 2766 and S. 1215 which would repeal the exemption for fracking in the Safe Drinking Water Act and allow the federal government through the EPA to get more directly involved in protecting our water supplies – which is their job in the first place!

Wednesday, December 29, 2010

Keeping College from Becoming a Ripoff

When I made my decisions on what I wanted to be and where I would go to school back in the early 70s, my family's modest finances made me determined to be as frugal and practical as possible. Although I had a number of interests, my aptitude in math and science (especially electricity) suggested that I become an electrical engineer, a job that paid well and would give me reasonable job prospects.

Then it was a choice of college. Deciding to stay local to be able to commute and thus save money on room and board, my choices were between a good public university, Pitt, and Carnegie-Mellon, a private university renowned for its engineering school.

But Carnegie-Mellon costed three times as much and I didn’t believe it would provide an education that was three times better. So rather than apply someplace our family couldn't afford, I foolishly put all my eggs in one basket at Pitt. Fortunately, Pitt accepted me. And since I still commuted from home, I was able to find an evening and weekend job in a restaurant near home that allowed me to pay my own tuition in full. (Today with the price of tuition skyrocketing, minimum wage jobs do not pay enough to do this anymore.)

So what was the result of all of this? I received an education that was adequate but was decidedly more impersonal due to the large size of the school. And without experiencing any of campus life by living there, my social life was frankly not much of a life at all.

But I got through it all and although I took several months after graduation to find my first professional job, it happened and I then started to earn a comfortable living – all without any college debt to worry about. This all worked perfectly until my engineering job was eliminated in my late 40s. I then discovered that those over 50 with college educations nowadays are not in demand to say the least. So although my college education is now useless in finding work, it served me well for much of my adult life.

One thing I noticed back in the times when employment prospects were more normal was that many of my colleagues did not have engineering degrees like I did. Instead of learning a trade like I did in engineering school, there were many others who graduated with an assortment of liberal arts degrees. But that was OK. At that time, a prospective employer often used a college degree to judge whether somebody had enough brainpower to be able to make a meaningful contribution to the company. If they were smart enough, they could be then be trained in whatever specialized work the company needed. It all worked quite well – but that was then.

In a previous posting,
Our Jobs Crisis, I argue that unlike previous downturns that were cyclical in nature, this one is structural in which many of the jobs we have lost through outsourcing and other overseas competition may likely never come back. Even more alarming, many of these lost jobs have been in college educated professions like engineering and even law.

In my time, going to college with the expectation of using that diploma as an entry into the middle class was a reasonable one. But today, many college graduates who have borrowed heavily to get that diploma (especially to go to that prestigious private school) have encountered a nightmare where their degree is no longer in demand while at the same time they are expected to start paying off their debt – which cannot usually be discharged through bankruptcy.

While many of the degrees they offer may no longer have as much economic value in the workplace as before, schools that make money from student tuition have no real incentive to warn prospective students about all of this. Jack Kelly in a recent op-ed,
The costly college scam, summed it up this way.

The biggest consumer ripoff in America today is a college education.

The scam exists for the benefit of college teachers and administrators who make a comfortable living ripping off the gullible. If only people capable of doing college work were admitted to college, and only courses with academic value were offered, there would be fewer colleges and far fewer faculty.

But in addition to the traditional colleges, the for-profit education and career training industry has grown explosively in no small part due to the GI Bill which pays for veterans’ education. This worked well for our veterans after World War II when the economy was rapidly expanding, but in today’s economy with its chronic shortage of jobs, it appears that the schools are reaping all of the benefits far more than the students which has resulted in a Senate investigation of industry practices.

A wide-ranging examination of for-profit colleges by the U.S. Senate has homed in on how the schools recruit and educate veterans -- a lucrative source of federal funds for [Pittsburgh]-based Education Management Corp.

From August 2009 to July 2010, EDMC -- which runs the Art Institutes, Argosy University, South University and Brown Mackie College -- took in about $60.5 million from the Department of Defense and Department of Veterans Affairs. According to data compiled by the Senate Health, Education, Labor and Pensions Committee, EDMC was the third largest recipient of such funds in that span, behind Apollo Group Inc. -- which runs the University of Phoenix -- and ITT Technical Institute.

The HELP Committee, led by Sen. Tom Harkin, D-Iowa, has been holding hearings on the practices of for-profit schools -- exposing aggressive and sometimes fraudulent recruiting tactics, and the high debt loads and failure rates of their students.

So am I saying that we should all give up on higher education and accept a career that pays little more than minimum wage? Hardly. It is marketable knowledge and skills that allow some to command a higher wage than others.

For those who desire it and are fit for a white collar occupation, college is certainly worth considering. But with the selective job market we now have, it is crucial to research up front how present graduates in a certain field are doing before investing the considerable amount of time and money to obtain a particular degree. While college does have certain benefits outside of career training, the expense also has to justify itself in the form of increased income after graduation. And white collar occupations are far from immune to outsourcing; in fact some of them have been hit especially hard in recent times.

Is a private college really worth all of the extra expense (and debt) over a publicly supported one? As I noted earlier, my educational experience in a large public university like Pitt was a somewhat impersonal one. Private schools offer smaller class sizes and more personal attention. But the same can be said for the smaller branch campuses of public universities like Pitt. In addition, community colleges are a great value and worth considering for a year or two before transferring to a 4 year college.

Of course, not everybody is cut out for college or a white collar career.
Learning a trade that is in demand can provide just as much pay and satisfaction as many white collar careers. With the many unemployed sitting at home watching TV, commercials for different training institutes are blanketing the airwaves. But there is always the disclaimer in the fine print that employment and salary are not guaranteed. Do these places really enable their students to find jobs as advertised? Or do they leave their graduates high and dry with little more than a pile of debt to deal with? It takes some research up front to find this out – preferably by talking to previous grads of these institutions.

So although college can be a ripoff, it doesn’t have to be. When dealing with anybody who asks us to part with some of our money, we have the responsibility to be informed consumers – and education is no exception!

Post Script - January 12, 2011
Being an informed consumer is especially difficult when the schools who are supposed to be providing objective information on the employment prospects of its graduates resort to fudging their figures or are outright lying about them.

A recent NYT article Is Law School a Losing Game? is about the rude awakening many recent law school graduates have received when they discovered that the expensive degree they borrowed money to earn isn't yielding any job offers in the field despite law schools encouraging even more students to enroll.
[Michael] Wallerstein, who can’t afford to pay down interest and thus watches the outstanding loan balance grow, is in roughly the same financial hell as people who bought more home than they could afford during the real estate boom. But creditors can’t foreclose on him because he didn’t spend the money on a house.

He spent it on a law degree. And from every angle, this now looks like a catastrophic investment.

Well, every angle except one: the view from law schools. To judge from data that law schools collect, and which is published in the closely parsed U.S. News and World Report annual rankings, the prospects of young doctors of jurisprudence are downright rosy.

In reality, and based on every other source of information, Mr. Wallerstein and a generation of J.D.’s face the grimmest job market in decades.
This article is a 'must read' for anybody studying for or contemplating a legal career.

To get a perspective from someone on the street, I forwarded a link to the article to a friend of mine who is a lawyer to get some feedback. Her response below is pretty self-explantory.
It's very sobering, but not a surprise, we have usually have at least 2 unemployed attorneys volunteering for us to get experience, and our youngest attorneys have loan balances close to $200,000. (our starting salary is less than $40,000). I have no idea why anyone still thinks law school is a good idea.

Sunday, December 12, 2010

Our Tax Cut Insanity

Imagine this scenario. A shopper brings $100 to the store to shop for groceries. After filling the cart she goes to check out and discovers that the total comes to $125. So what happens then?

In the practical world, she would ask the checkout person to take away $25 worth of groceries from the bill. Or if she felt that all of her purchases were really necessary, she can put the shortfall on her credit card to pay back later.

Of course she could have complained about how much food has gone up. Or perhaps about how the store charges what she feels is too much for her food. She could have even promised herself that next time, she would go to the store with only a $75 shopping list of groceries.

But try as she may, she just couldn’t find $25 worth of groceries she could do without. So she puts the extra $25 worth on her credit card for this and future trips to the store.

So why not bring $125 each time to the store? Because she is convinced that each time she goes to the store, she will find a way to cut out that extra $25 and not have to put in on the credit card. But that never happens and the credit card balance keeps going up and up.

This grocery store scenario is a pretty good match to the behavior of Congress when it comes to our annual federal budgets here in the US. We don’t have enough tax money coming in to pay the total bill. So we borrow the rest and vow to spend less next year so we don’t have to borrow more.

But it never works out that way. While we all have our own ideas on where to cut the budget, there is not enough of a consensus to ever make it happen. For example, most liberals feel that we spend far too much on our military. But most conservatives feel that the military budget is untouchable. And many conservatives feel that we spend too much on entitlements such as Social Security and Medicare. But liberals feel these are untouchable. So the process of making any significant cuts in the federal budget invariably leads to Congressional gridlock.

So it would stand to reason that if we can’t cut spending to balance our budget and not put more on the credit card, we need to raise taxes to make up the difference. But instead, the supply side economists starting with David Stockman who was President Reagan’s budget director, advocated for and helped to pass tax cuts with the idea of stimulating the economy to make up for the lost tax revenue. But instead, the lack of tax money simply resulted in a greater shortfall and the need to put more money on the credit card.

Paying less in taxes with the idea of “starving the beast” to reduce the size of government has long been a part of the conservative ideology. But tax cuts without corresponding spending cuts only puts us deeper in the hole which requires us to borrow even more.

But instead of learning our lesson under Reagan that tax cuts do little more than create larger deficits, President George W. Bush passed another major tax cut in addition to a major spending increase in the way of the Iraq and Afghanistan Wars. The result was more record deficits and more borrowing – mostly from the Chinese. With the Chinese now owning so much of our debt, trying to deal with them on their often unfair trade practices that have drained us of jobs has become increasingly difficult.

A legacy left from the Reagan and Bush tax cuts is an attitude by the conservatives that we can get all of the government we need without having to pay enough taxes to balance the budget. Instead of being “deficit hawks” we now started to get
Republican excuses for the deficits.

Vice-President Dick Cheney famously told former Treasury Secretary Paul H. O'Neill, that "deficits don't matter." What's interesting and alarming, however, is that different Republican factions believe deficits don't matter for opposite and incompatible reasons.

Supply-siders believe deficits don't matter because tax cuts so boost investment and productivity that the economy grows its way out of debt. The opposite, "starve the beast" faction, epitomized by tax tactician Grover Norquist, hope tax cuts will indeed create deep deficits that will then force spending cuts. But both things can't be true.

Under George W. Bush, the merry ideology calls for tax cuts in all seasons for all reasons. Spending has increased faster than under Clinton, and deficits have ballooned, yet tax cutting marches on.

Another huge byproduct of the Bush tax cuts was their benefit to the wealthiest which has resulted in a huge concentration of income and wealth at the very top of the food chain.

With the middle and lower classes now suffering economic hard times, it is hopeless to try and balance the budget by asking more taxes from them. This is what I argue in a previous posting
Make the Rich Pay Their Fair Share!

Due to technical reasons, the Bush tax cuts could not be passed as a permanent measure but instead are due to expire at the end of 2010. Logic would dictate that the tax cuts for the wealthiest Americans that created so much of the deficit should be allowed to expire. But for Republicans, tax cuts are a religion and the Senate Republicans have vowed to kill all legislation including unemployment compensation extensions until the tax cuts for the wealthiest Americans (their political base) are extended first.

Despite these tax cuts having been shown to do little more than increase the deficit and our credit card balance (the National Debt) now approaching $14 trillion, the conservatives’ insane fervor for tax cuts continues unabated, even for those who claim that they believe in balanced budgets. The classic definition of insanity – doing the same thing over and over and expecting different results certainly applies here.

Even David Stockman, the man who helped to start it all has finally admitted to the insanity in a recent
60 Minutes interview.

(Extending the Bush tax cuts is) rank demagoguery. We should call it for what it is. If these people were all put into a room on penalty of death to come up with how much they could cut, they couldn't come up with $50 billion, when the problem is $1.3 trillion. So, to stand before the public and rub raw this anti-tax sentiment, the Republican Party, as much as it pains me to say this, should be ashamed of themselves!

Sunday, November 14, 2010

Put Up or Shut Up Time for the Republicans

It was a pretty depressing election for Democrats. From their viewpoint, the only consolation that evening was that Sharron Angle and Christine O’Donnell lost. But the Republicans as expected took control of the House of Representatives. Can you say Speaker John Boehner? I knew you couldn’t.

For the Republicans, it was good news and bad news. The good news was that they won enough seats to recapture the House. The bad news is that they now have to help govern instead of just criticizing and obstructing the Democrats from the sidelines.

Anybody can be a critic. But it takes a lot more to be a doer.

Not that there’s anything wrong with criticism. It’s an indispensable part of a free election system. The other guys stink. We can do things better. Vote for us.

But what made things so maddening for the incumbent Democrats during the election was the claim that if the Republicans were elected, they would do things better — but without ever giving any real specifics on how they would do it.

For example, we are now running a budget deficit of about $1.3 trillion which to Republicans is unacceptable. Their plan to balance the budget is to extend the tax cuts to all including the wealthiest 2% along with mostly unspecified “spending cuts”. We don’t know exactly what they have in mind but the most consistent story is that defense, Social Security, and Medicare cuts are not on the table which is the lion’s share of the budget. With precious little else to cut, how do they propose to balance the budget while not only refusing to raise taxes but also swelling the deficit with more tax cuts for the wealthy? The math just doesn’t add up! But then again, they now have a chance to propose their own budget in the House to answer these questions.

And then there is the pledge to repeal “ObamaCare” and replace it with something better. But no matter how one feels about health care reform, there were a number of significant breakthroughs that were a result of the passing of this bill. For example, children can no longer be rejected for insurance based on preexisting conditions. (For adults, this kicks in by 2014.) Children graduating from college who cannot find a job with insurance benefits can stay on their parents’ policy until age 26. And now those with health insurance cannot be dropped by their insurer simply because they got sick. Lifetime individual dollar limits for coverage have also been dropped.

So for those who wish to repeal “ObamaCare”, which of these benefits do they want to see taken away? Or maybe they intend to keep the good parts while getting rid of those parts that they (or more likely the health insurance companies that financially support them) don't like. Admittedly, the stuff about repealing health care reform is little more than blowing smoke. Even if it somehow got past the Senate, the president would be ready with his veto pen. But it would sure be interesting to see how they would do their own healthcare reform bill. And because of the Republicans regaining control of the House, we will finally get to see what substance they are offering behind all of the rhetoric.

But past history has not been encouraging. For example back in 1994, the Republicans defeated
"HillaryCare" and in the following years after gaining control of both Congress and the White House, the number of people without health insurance skyrocketed with no real attempts at reform during that period. Now that the Democrats have finally passed a health reform bill into law, the Republican game plan is to again defeat it but this time by repealing it.

Call it political spin, but I now believe that the Republican regaining of the House may well be a blessing in disguise for the Democrats — and maybe the country in general.

We know the Republicans are good at winning elections. But can they govern once they win? Or are they like the dog that chases after cars and then doesn’t know what to do when it catches one?

New Jersey Republican Governor Chris Christie in this
recent Meet the Press appearance sums it all up with his usual brutal honesty:

MR. GREGORY:
When you talk about the response from the voters on Election Day, something's very curious. We know some of the feelings about the Democrats, about President Obama 's policies, but look at this from the exit polls in terms of the opinion of political parties . Republicans didn't fare too well either; 52 percent unfavorable rating. What does that say about the Republican Party today?

GOV. CHRISTIE:
You know, I think what it says is what I was saying all over the country, that's it's put up or shut up time for our party. You know, we lost our way last decade, David. We did, and people expect us to do better. And if the Republican Party wants to come back, they're going to have to do what they said they were going to do. I mean, because if they don't, we're going to be sent to the wilderness for a long time, and we're going to deserve it!

Sunday, October 31, 2010

Stonewalling the Media

As the Democrats await their fate in the upcoming election, there is one Senate race that even among all of the crazy races has perhaps captured the most attention. And that is the Nevada US Senate race between Democrat and Majority Leader Harry Reid and Republican and Tea Party favorite Sharron Angle.

Sure there are many other races where Tea Party candidates have adopted positions that are well out of the political mainstream (even for many Republicans!), but Sharron Angle is in a league of her own.

Brian Greenspun, the publisher and editor of the Las Vegas Sun in his editorial
Nevadans can show how smart we are (Or, by electing Sharron Angle, we can prove the reverse is true) sums up just a few of Angle’s provocative positions.
Angle would dismantle Social Security and Medicare, calling them biblical sins; do away with Veterans Affairs; not require insurance companies to pay for mammograms, and screenings for prostate and other cancers that we know can save lives with early detection; or refuse to require background checks for sex offenders. These are all norms of American daily living that people take for granted and expect that those who we elect won’t take them away. Angle would.

Even worse, she has stated publicly how she really feels about Nevadans crushed by this meltdown. She believes people who need unemployment benefits to keep their homes and food on their tables, until there are jobs to be had, are just spoiled!
The list goes on and on. There is her position that even women who are impregnated by rape or incest should not have access to abortion. And then there are her proposed Second Amendment “remedies” in response to actions by Congress she disapproves of. A little armed insurrection anybody?

But this is not about criticizing her ideas as strange as they may be to many of us. Elections are about competing ideas and candidates should air their different views to allow the voters to make their own informed choices.

But what angers me (and should anger you too) is the strategy of Angle (and many other Tea Partiers) of stonewalling the media when they try to do their job of asking follow-up questions of the candidates to defend their positions. Or as the Sun editorial puts it:
People’s right of access to information about their government is paramount. People who wish to seek and hold public office have no right to withhold themselves and their views from voters. Angle, obviously, disagrees with the First Amendment to the Constitution, the Founding Fathers who wrote it and the vast majority of Americans who live and die each day defending it.
Angle has been seen many times walking away from media questioners, but the latest is the straw that breaks the camel’s back for me. Check out the video of the latest attempted interview of her in this link.
Reporters from the CBS and NBC affiliates surprised the tea party favorite at McCarran International Airport, where they asked her questions about national security and unemployment. Angle responded, "I will answer those questions when I am the senator."

Pressed further, she added, "The two wars that we are in right now are exactly what we are in."
How profound. This is more than just an isolated incident; it represents an attitude on her part. Appearing on conservative-friendly Fox News, she came out with a whopper that even left the Fox interviewer flabbergasted.
"We wanted [the press] to ask the questions we want to answer, so that they report the news the way we want it reported."
The strategy these candidates use is to put out some right-wing talking points (some say it's demagoguery) to fire up the base, but at the same time avoid answering questions by the media (except for friendly questioning on Fox) to explain or defend their positions.

For example, Kentucky Republican Senate candidate Rand Paul cancelled a scheduled appearance on Meet the Press rather than explain his controversial remarks on the 1964 Civil Rights Act. Sarah Palin never appeared on any of the Sunday political talk shows during her VP run in 2008. It was only when ABC’s Charles Gibson asking her about the Bush Doctrine and CBS’s Katie Couric asked her about which newspapers she read that her lack of knowledge on the issues became painfully apparent. And then there was the recent infamous incident in Alaska where Republican Alaska Senate candidate Joe Miller’s private security guards handcuffed a reporter for approaching the candidate with questions after a public town hall meeting.

One would think that when a candidate refuses to answer questions, the voters would respond by not voting for that person!
But Angle, Paul, and Miller all lead in the polls this weekend before the election so this basically dishonest strategy is apparently working. (But fortunately not for California GOP gubernatorial candidate
Meg Whitman.)

We shouldn’t let them get away with it!
It should stand to reason that if certain candidates are going through all of this trouble to avoid defending their positions, isn’t it reasonable to ask what they are hiding? Isn’t it possible that some of their extreme positions would be indefensible in the face of media scrutiny? And that they know it!

Sunday, October 10, 2010

Freedom to Hate

I can’t help but wonder if the framers of the US Constitution’s First Amendment would have placed at least some restrictions on hate speech if they had seen some of the most infamous examples in history such as from the Nazis, the KKK, and most recently the Westboro Baptist Church, a virulent anti-gay hate group in Topeka, Kansas headed by Fred Phelps which has gotten national attention for their picketing of military funerals.

It is their worldview (not mine) that since God hates homosexuality and the US Government and its military tolerates homosexuality, the tragedies that America has suffered like 9/11 along with the military deaths from the wars are a retribution from God.

For those seeking to understand more about the WBC, a fascinating one hour BBC documentary (which you can watch online in the following link) The Most Hated Family in America
is written and presented by Louis Theroux who not only reports on the family’s strange (to say the least) views, but also probes some of the church members on their beliefs and even tries to reason with them (without success). It is scary to hear how all of these people think exactly alike in what amount to a cult environment.

The US Supreme Court has recently heard arguments from the family of Marine Lance Corporal Matthew A. Snyder who initially
won a lawsuit against the WBC for “defamation, invasion of privacy, and intentional infliction of emotional distress” as a result of their picketing Corporal Snyder’s funeral only to have a higher court throw out the award based on First Amendment protections.

Ruling on this case is not so easy since hate speech
unlike in most countries in the world is protected by the First Amendment. But there are also the rights of citizens not to be harassed by hate from others.

However, even the First Amendment does not provide absolute protection of free speech. There are
Exceptions to the First Amendment such as for obscenity, child pornography, libel and slander. But the most applicable exception here is known as Time, Place and Manner Restrictions.

Even speech that enjoys the most extensive First Amendment protection may be subject to “regulations of the time, place, and manner of expression which are content-neutral, are narrowly tailored to serve a significant government interest, and leave open ample alternative channels of communication.” In the case in which this language appears, the Supreme Court allowed a city ordinance that banned picketing “before or about” any residence to be enforced to prevent picketing outside the residence of a doctor who performed abortions, even though the picketing occurred on a public street. The Court noted that “[t]he First Amendment permits the government to prohibit offensive speech as intrusive when the ‘captive’ audience cannot avoid the objectionable speech.”

This has led to the use of so-called Free speech zones.

Free speech zones have been used at a variety of political gatherings. The stated purpose of free speech zones is to protect the safety of those attending the political gathering, or for the safety of the protesters themselves. Critics, however, suggest that such zones are "Orwellian", and that authorities use them in a heavy-handed manner to censor protesters by putting them literally out of sight of the mass media, hence the public, as well as visiting dignitaries.

There is a misconception that the Westboro picketers are always in the immediate vicinity of the funerals. But there have been a number of laws passed to restrict how close the picketers can get to funeral services. In the case of the Snyder funeral, the picketers were said to be about 1000 feet away and their presence was apparently not even known to the Snyder family until they saw the protesters afterwards on the local newscasts.

The ACLU whose position protecting the right of the WBC to picket is
in this blog posting (by a gay person no less). Instead of trying to outright prohibit the hate speech of the WBC which would almost certainly be struck down by the First Amendment, separating the picketers and the object of their wrath by enough of a distance appears to be a workable compromise. The only question left would then be to determine how much separation is enough to prevent needless intrusion without being overly restrictive on free speech. In cases like this, it always comes down to the same question: Where do we draw the line?

Thursday, September 23, 2010

Make the Rich Pay Their Fair Share!

Today, the Republicans unveiled their "Pledge to America".

House Republicans offered their “Pledge to America,” a combination campaign platform and legislative agenda, on Thursday morning, saying that jobs will return if spending slows and tax rates are kept from rising.

The Republican leaders called on the Speaker of the House, Nancy Pelosi
, Democrat of California, to immediately begin a debate on the items on their list, including making lower tax rates for all taxpayers permanent, holding back federal spending, repealing the health-care overhaul enacted this year and reducing the federal deficit.

Most of the Democrats are in favor of keeping the Bush tax cuts set to expire at the end of the year for all except the 2% who make over $250,000 per year. But the Republicans desperately want to keep those tax cuts for the very wealthiest Americans.

So this leaves us with two questions: Is it morally right to increase the tax rate on the richest from about 35% as it is now to about 39% as it was during the Clinton administration? and…Will keeping the tax cuts for the upper 2% permanent truly reduce the federal deficit?

The moral question is a bit trickier than it seems at first. Just saying that because these people are rich we have a right to take more of their money is not a satisfactory argument by itself. After all, it is their money. But while many of us over the last decade have struggled financially,
the very richest have gotten even richer because of preferential tax treatment.
The top 400, all of whom are worth at least $1 billion, saw their combined wealth increase 8 percent this year, to the dizzying total of $1.37 trillion, according to analysis from CNN.

This means the 400 richest people in America account for about 2.6 percent of the nation's private wealth.
The idea of giving tax cuts to the very rich was that if they prospered, the rest of us would also prosper. But that has proven to be a false as
income inequality is at an all-time high.
Income inequality in the United States is at an all-time high, surpassing even levels seen during the Great Depression, according to a recently updated paper by University of California, Berkeley Professor Emmanuel Saez. The paper, which covers data through 2007, points to a staggering, unprecedented disparity in American incomes. On his blog, Nobel prize-winning economist and New York Times columnist Paul Krugman called the numbers "truly amazing."

...while the bottom 99 percent of incomes grew at a solid pace of 2.7 percent per year from 1993-2000, these incomes grew only 1.3 percent per year from 2002-2007. As a result, in the economic expansion of 2002-2007, the top 1 percent captured two thirds of income growth.
But income inequality in itself is not as much of an issue as long as everybody is doing reasonably well. But when the middle and lower classes are getting hammered while at the same time the rich are getting richer, it is no wonder that there is talk of class warfare. Even conservative economist Ben Stein was moved to write a 2006 op-ed, In Class Warfare, Guess Which Side is Winning?

It turned out that [multibillionaire Warren] Buffett, with immense income from dividends and capital gains, paid far, far less as a fraction of his income than the secretaries or the clerks or anyone else in his office. Further, in conversation it came up that Mr. Buffett doesn’t use any tax planning at all. He just pays as the Internal Revenue Code requires. “How can this be fair?” he asked of how little he pays relative to his employees. “How can this be right?”

Even though I agreed with him, I warned that whenever someone tried to raise the issue, he or she was accused of fomenting class warfare.

“There’s class warfare, all right,” Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”

Morals aside, another part of the article brings us to the second question about how we can reduce the deficit which just about all conservatives claim to be important to them.

Put simply, the rich pay a lot of taxes as a total percentage of taxes collected, but they don’t pay a lot of taxes as a percentage of what they can afford to pay, or as a percentage of what the government needs to close the deficit gap.
Our recent experience has shown that there are only two realistic ways to try and close a deficit gap — cutting spending and/or raising taxes. Even conservative economic gurus such as former Fed chief Alan Greenspan (along now with Florida GOP Senate candidate Marco Rubio) have now admitted that
tax cuts don't pay for themselves.

The solution given by those on the political right is never to raise taxes but instead to cut spending to balance the budget. But as Ben Stein observes:

The imperatives for [increased] spending are built into the system, and now, with entitlements expanding rapidly, increased spending is locked in. Medicare, Social Security, interest on the debt — all are growing like mad, and how they ill ever be stopped or slowed is beyond imagining. Gross interest on Treasury debt is approaching $350 billion a year. And none of this counts major deferred maintenance for the military.
It is telling that although the Republicans’ Pledge to America aims to hold back federal spending and reduce the federal deficit, it offers no specifics on how they would actually cut the budget. And let’s face it, if the Republicans are not in favor of cutting defense spending and the Democrats are not in favor of cutting entitlement spending e.g. Medicare and Social Security, what else is there to cut?

So despite those on the right who say that we are all taxed enough, the only way out of this mess is to bring in more tax revenue to pay for what we want and need our government to do. But especially with the lower and middle classes hurting so badly, we can’t ask more of them. But we can certainly ask the wealthy who have prospered so well in recent years from preferential government tax treatment to carry more of the load.

The concept behind what is called
progressive taxation is that the wealthy who can most afford it, are required to pay higher tax rates than others who are less able to afford taxation. In addition, raising marginal tax rates on the wealthy has been an important safety valve for when our government has had to make unexpected large expenditures, such as for wars and during the Great Depression (see chart). At times our top marginal rate for the wealthy has been over 90% during wars. What is unprecedented is George W. Bush conducting the Iraq and Afghanistan wars while at the same time, offering a tax cut to the wealthy. No wonder we turned the budget surplus under Bill Clinton into a huge deficit in such short order!

Even most liberals do not favor us returning to the days of 90% tax rates for the wealthy. That is unfair to them! But when
The Angry Rich are fighting so bitterly to keep their tax rates from reverting from 35% now to 39.6% when Bill Clinton balanced the budget, that is unfair to the rest of us! When those (especially the wealthy) who make their money from dividends and capital gains get to pay a much lower rate than those of us who work for a living, that is unfair! When hedge fund managers whose annual incomes are sometimes over a billion dollars can through a tax loophole pay at only a 15% rate, that is unfair! When instead of raising the Social Security taxable income above $106,800, we get the absurd idea of raising the retirement age to 70, that is unfair!

So if we are really about fairness, there is one thing that we can do. We must make the rich pay their fair share!