Washington Independent

Weekly Pulse: No Public Option: Worse Than Nothing?

by: The Media Consortium

Wed Dec 16, 2009 at 12:55

By Lindsay Beyerstein, Media Consortium Blogger

In search of the elusive, filibuster-proof 60th vote, Senate Majority Leader Harry Reid eviscerated the Senate's health care reform bill on Tuesday. Potential GOP swing voter Sen. Olympia Snowe (R-ME) confirmed that Reid promised to kill both the public option and the expanded Medicare buy-in, according to Brian Beutler of Talking Points Memo.

Snowe didn't pledge to support the bill, of course. She didn't even promise to cooperate on the procedural votes required to pass the bill before Christmas, a deadline that the Obama administration has its heart set on. In other words, Reid gave away the progressive crown jewels of health reform on spec to a senator who cheerfully turned around and continued the Republican stalling strategy. From Snowe's vantage point, that's a great move. The longer the bill hangs in limbo, the more Reid will give away.

Former Democrat Joe Lieberman (I-CT) seems determined to kill the bill. Lieberman must be motivated more by a desire to spite liberals than any principled policy stance. He keeps threatening to filibuster policy proposals he once campaigned on, like the Medicare buy-in. Lee Fang of TAPPED notes that Lieberman told the New York Times that he now opposes the buy-in because it's beloved of lefty single-payer types like Rep. Anthony Weiner (D-NY); and the policy wonk behind the public option, Prof. Jacob Hacker.

The Women's Media Center has launched the #UnderTheBus campaign, which calls on supporters to contact their representatives and urge them not to let Lieberman and his close, anti-choice ally Ben Nelson (D-NE) sell out women's health care for political gain. Nelson has hinted he won't vote for the bill unless it contains strong abortion funding restrictions.

Stephanie Mencimer reports in Mother Jones that a bunch of teabaggers decided to stage a sit-in to oppose the health bill at Lieberman's office. Mark Meckler and some Tea Party Patriots showed up at Lieberman's office and asked to meet with the senator. When they were told he wasn't available, they all sat down. When they tried that routine at Sen. Barbara Boxer's office (D-CA), her staff ignored them. Lieberman's staff called the cops. (Note to teabaggers: Sit-ins are for enemies, not allies.)

The senate bill is so watered down that it wouldn't even stop insurance companies from capping benefits, as Roger Bybee reports at Working In These Times.

Former congressional candidate Darcy Burner says she'd rather see the bill die than have it pass in its current state. She argues that if health care reform doesn't curb costs, it's just a Band-Aid on a gaping wound. She writes in AlterNet:

The fundamental failing of the newest Senate proposal is that it requires individuals to purchase health insurance, but does nothing to rein in what insurance companies charge. There is nothing to stop spiraling health costs from eating up an ever-increasing percentage of our national productivity.

The House bill has two major cost-control mechanisms: the public option and the 85 percent medical-loss ratio requirement. The Senate bill is on track to have neither, and nothing new to replace them. The Senate bill is a recipe for national disaster. If it's that bill or nothing, I prefer nothing.


Adding insult to injury, the Senate also voted down a bill yesterday that would have made it easier for consumers to purchase cheaper prescription drugs abroad. Mike Lillis of the Washington Independent suggests that the White House was relieved to see the Dorgan-Snowe bill defeated because it would have violated the deal it struck with pharmaceutical companies earlier this year. The drug companies promised up to $80 billion for health care reform if Democratic leaders withheld support for several initiatives that would cut into drug company profits.

This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

 

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Weekly Mulch: Countdown to Copenhagen

by: The Media Consortium

Fri Nov 27, 2009 at 13:53

By Raquel Brown, Media Consortium Blogger

On Wednesday, President Obama pledged to cut U.S. carbon emissions "in the range of" 17% below 2005 levels by 2020. Obama also confirmed that he will attend the international climate conference in Copenhagen next month, as Aaron Wiener notes for the Washington Independent. But here's the catch: It's a one-day deal. Obama is only planning to stop by Copenhagen on Dec. 9 before flying to Oslo to accept his Nobel Peace Prize. The climate talks, on the other hand, span Dec. 7 to Dec. 18.

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Weekly Mulch: Progress for Baucus, Setbacks for Graham

by: The Media Consortium

Fri Nov 13, 2009 at 10:56

By Raquel Brown, Media Consortium Blogger

For weeks, Sen. Max Baucus (D-MT) has opposed climate change legislation. In the Environment and Public Works (EPW) Committee, he openly voiced his doubts and was the only Democrat to refrain from voting for the bill's passage. Now that the bill is in the Finance Committee, which Baucus chairs, many worry that the bill is doomed. However, it looks like Baucus might have outwitted us all.

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Weekly Pulse: Problems for the Public Option

by: The Media Consortium

Wed Nov 04, 2009 at 12:18

By Lindsay Beyerstein, Media Consortium Blogger

The House released a final version of the health reform bill. It has a public option all right, but not the robust version progressives were hoping for. The public plan would only cover 2% of Americans and premiums will cost more than anticipated.

Meanwhile, Sen. Joe Lieberman (I-CT) continued to threaten to join a Republican filibuster of a health care bill with a public option. A lot of people still think he's bluffing. Realistically, the public option probably faces more serious threats from inside the Democratic caucus. It's been whittled down at an alarming rate.

Nick Baumann of Mother Jones asks "What now for the public option?"

The Congressional Budget Office has estimated that public option premiums will actually be higher than the premiums for private plans on the health insurance exchanges. That doesn't mean it's going to cost the government more money-the public option is paid for by premiums, not taxes; it actually cuts the deficit. But it will be more expensive than some private plans. Wasn't part of the point of the public option to prove that a government-run program could compete successfully with privately-run plans? Well, yes, but here's the problem: that was all based on the idea that the public option would pay health care providers at Medicare rates.

Baumann predicts that insurers will do everything they can to drive the sick people off private insurance onto the public plan, a phenomenon known as "adverse selection." Hopefully some of the proposed insurance reforms will curb their worst excesses, like kicking people off the rolls for misspelling their preexisting conditions on their application forms.

Mike Lillis of the Washington Independent reports that the House health care bill would eliminate the popular and cost-effective Child Health Insurance Program (CHIP) and shift its low-income beneficiaries onto private health insurance exchanges.

This looks like a stealthy preemptive strike on the prospect of single-payer health care. CHIP is a single-payer program that progressive health policy types envisioned as a prototype for a future single-payer system for all kids, or even eventually for everyone.

As Lillis points out, abolishing CHIP is also a gimme to insurance companies. Generally speaking, kids are cheap to insure because they're healthy. Private insurers would love to stock their risk pools with kids on federal subsidies. It's like getting paid to stock your pond with delicious trout. We worry about adverse selection making the public plan more expensive. Well, CHIP is the reverse of that because this public program is keeping the good risks for itself.

Suzy Khimm argues at TAPPED that killing CHIP could be a good thing, provided the kids continue to enjoy the same legal protections that they get under the public plan. Khimm suggests that moving low-risk kids into insurance exchanges could help keep costs down for everyone by making the risk pool healthier on average:

That being said, if CHIP's dismantling ended up moving more folks into the health-insurance exchange, it wouldn't simply be a boon for "the insurance lobby and moderate Democrats." It could strengthen one of the most fundamental parts of the Democratic reform package -- a robust insurance exchange with a pool of participants that's large enough to drive down costs precisely because insurance companies have an incentive to jump in and compete for customers. Moreover, folding CHIP into the exchange would add a younger, healthier pool of participants to the exchange, offsetting its potential of becoming a dumping ground for the sick and elderly. Finally, CHIP has always suffered from under enrollment -- about 6 million children aren't insured in the program who should be -- and by bringing whole families in under the same plan, more children will be covered.

That's a nice idea, but it seems foolish to scrap one a popular and successful social program in favor of an untested insurance exchange system.

The frustrating thing about so-called health care reform is that legislators don't really want to change the system. They want to make the system work better while catering to all the established interests that made it suck in the first place.

Politicians aren't the only ones to balk at fundamental change. The Real News Network interviews Sam Gindin (video below), a former assistant to the Canadian Auto Workers Union, now a professor at York University. Gindin says that, over the years, labor conceded too much on health care and thereby failed to reestablish itself as a leading force for progressive change in the United States. Helping elect Barack Obama was a step in the right direction for labor, he maintains, but it's not nearly enough.

As John Nichols of the Nation put it, when the House finally wrote the bill, the compromise was even more compromised than expected.

This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

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Weekly Audit: Too Big to Fail is Just Too Big

by: The Media Consortium

Tue Nov 03, 2009 at 11:32

by Zach Carter, Media Consortium Blogger

Last week, President Barack Obama released key legislation designed to fight the banking industry's too-big-to-fail problem. But Obama's plan doesn't actually address too-big-to-fail at all. It reinforces a broken system in which economically dangerous companies are bailed out whenever they drive themselves to the brink of failure.

If we want the economy to support all people, we have to break up the big banks and start treating the creation of good jobs as an economic priority on par with Wall Street rescues.

The editors of The Nation break the political debate over banking into three camps:

  • The first camp is composed of bank lobbyists, Republicans and conservative Democrats and wants to do nothing.
  • Camp two, endorsed by the White House and influential Rep. Barney Frank (D-MA), would impose tougher regulations on too-big-to-fail banks to keep them from getting out of control.
  • The third camp wants to go even further: If a bank is too-big-to-fail, it is also too-big-to-regulate. Companies that pose a danger to the economy have to be split up into smaller firms that cannot induce economic ruin.

The Nation editors rightly see the third strategy as the most sensible. While the "break-up-the-banks" policy is being portrayed as a left-wing pipe dream by cable news networks, the policy actually relies on an age-old observation of conservative economists. Regulators make mistakes, and they often get co-opted by the very industries they are supposed to be supervising.

The practical policy is to impose structural limits on what activities banks can participate in and how big they can get. Just look at the list of high-profile supporters: former Federal Reserve Chairman Paul Volcker, former Citigroup Chairman John Reed, Bank of England Governor Mervyn King. I don't remember seeing any of those guys at the Iraq War protests.

Many of the regulatory blind spots that brought down the economy were obvious to some policymakers for years. Back in 1994, Sen. Byron Dorgan (D-ND) wrote an article for The Washington Monthly warning that derivatives trading was putting the economy in grave danger. Commodities Futures Trading Commission Chair Brooksley Born tried to take action on these derivatives, but was overruled by other regulators, including then-Fed Chair Alan Greenspan, and then-Treasury Secretary Lawrence Summers, now the top economic adviser to President Obama. Summers and Greenspan even convinced Congress to pass a law banning the regulation of key derivatives, including credit default swaps, which ultimately brought down insurance giant AIG.

Fifteen years after Dorgan's article first ran, The Washington Monthly is featuring it again, along with a recent speech by Dorgan that details massive failures in Wall Street and Washington.

"We had regulators come to town in recent years and willfully boasted that they wanted to be blind as regulators," Dorgan says.

There are good elements of Obama's plan to deal with too-big-to-fail. It gives policymakers the option of putting a too-big-to-fail institution through a special bankruptcy process administered by the executive branch, thus avoiding the problems created in bankruptcy court when Lehman Brothers failed. But the bad part is really bad: Officials would also have the option to provide unlimited bailouts to Big Finance via loans, guarantees and even asset purchases.

As Mike Lillis notes for The Washington Independent, some responsible Democrats like Rep. Brad Sherman (D-CA) have been objecting to this aspect of the legislation for months. Sherman, in fact, calls it "TARP on steroids," noting that the bank bailout at least came with some meager oversight and a limit on the program's actual size.

The bank lobby is spending money like mad to maintain their stranglehold on the economy. Neither Congress or the administration will change course without intense public pressure. So it was very reassuring last week to see thousands of people protesting the annual meeting of top bank lobby group, the American Bankers Association. David Moberg chronicles the protest in a blog post for Working In These Times that covers speeches by both key union leaders and ordinary people facing foreclosure after watching their tax dollars go to the very bankers who wrecked the economy.

"There was broad agreement on anger at the banks for providing so little, if any, public benefit for the massive bail-out, and for so quickly returning to the greed and abuse that precipitated the crisis," Moberg writes.

Laura Flanders covers the protests for GRITtv, including video of protesters chanting "Bust up big banks!" In a roundtable discussion with Christina Clausen of the United Food & Commercial Workers Union, George Goehl of National People's Action and Rob Robertson of the Right To The City Alliance, Rolling Stone journalist Matt Taibbi explains the overriding impotence of the regulations Congress is about to approve. Regulators will not be able to crack down on abusive derivatives, a full 8,000 of 8,200 banks will be exempt from Consumer Financial Protection Agency oversight, while the same agencies that screwed up heading into this crisis will be charged with preventing the next one.

"They've had sweeping powers to do whatever they wanted," Taibbi says. "They've had this regulatory power all along."

What we need are good jobs, and lots of them. Obama's economic stimulus package has made tangible economic progress. It's saved hundreds of thousands of jobs, and is clearly responsible for the turnaround in gross domestic product (GDP) we saw in the third quarter. But a full 17% of the workforce remains unable to find full-time work, as Julianne Malveux explains for The Progressive.

When Wall Street crashed in 1929 and unleashed the Great Depression, the government eventually stepped in as an employer-of-last-resort. The Works Progress Administration (WPA) and Civilian Conservation Corps (CCC). built schools, parks, roads and bridges which still serve our communities today. Both the WPA and the CCC employed literally millions of people-in the 1930s. It's a model that could work very well today.

As the current recession makes clear, ending too-big-to-fail and guaranteeing a good job for everyone in our society who wants one are the two most critical structural reforms our economy needs. Don't let lawmakers forget it.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

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Weekly Diaspora: Legislating Hate

by: The Media Consortium

Thu Oct 29, 2009 at 10:41

By Nezua, Media Consortium Blogger

Anti-immigration groups and pundits cling to phrases like "Illegal Alien" because they only focus on foreignness and danger. These extreme factions are all about casting immigrants as what ails our society, conjuring up demons upon which to focus national ire, and perpetuating a subhuman category of being. It's a convenient distraction from things that are actually endangering our nation. A new web-only series from ColorLines called "Torn Apart by Deportation" is the perfect antidote to people like CNN's Lou Dobbs.

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Daily Pulse: Finance Committee Rejects Public Options, But the Fight Continues

by: The Media Consortium

Wed Sep 30, 2009 at 13:59

By Lindsay Beyerstein, Media Consortium Blogger

Yesterday, the powerful Senate Finance Committee met to debate two amendments that would have inserted a public option into the committee's health reform bill. Both amendments were defeated as key Democrats sided with Republicans and the insurance companies. David Corn of Mother Jones diagnoses what ails Senate Democrats. It's split personality disorder: "They are the best friends of the health insurance industry. They are fiercest foes of the health insurance industry."

Sen. Jay Rockefeller's (D-WV) strong public option amendment was defeated 15-8 because senators Max Baucus (D-MT), Kent Conrad (D-ND), Blanche Lincoln (D-AR), Bill Nelson (D-FL), and Tom Carper (D-DE) joined the committee's ten Republicans. In the next round of voting, Nelson and Carper backed Chuck Schumer's (D-NY) amendment, but Baucus, Conrad and Lincoln stuck with the GOP and voted it down. Ironically, as Corn observes, the Senate Democratic communications team was busy emailing blistering indictments of the insurance industry while key members of the caucus were doing the insurers' bidding.

John Nichols of The Nation worries that yesterday's defeat is a sign that Congress is backing away from a public option, which was itself a compromise alternative to a single-payer, Medicare-for-all type system:

Tuesday's day-long gathering of the powerful Senate Finance Committee, where chairman Max Baucus has spent months lowering expectations, offered a sense of just how dim prospects for meaningful systemic change have become.

Baucus, the insurance-industry representative who doubles as a Democratic senator from Montana, long ago rejected the notion that a robust public option might be a part of any healthcare reform measure that would pass the Senate.


The Senate Finance Committee went on to add tens of millions of dollars for discredited abstinence-only propaganda for teens, as Mike Lillis of the Washington Independent reports. Well, at least pseudoscience has a public option. If kids can learn this nonsense for free at school, maybe they'll ditch church, where you have to put your money in the collection plate to hear the sermon.

Chris Bowers of AlterNet argues that a public option still has 51 votes in the Senate. Which means that the Democrats could still pass a healthcare bill by majority vote in the upper chamber, if they decided to forgo their quest for a filibuster-proof 60 and pass the bill through budget reconciliation.

Sen. Tom Harkin (D-IA), chair of the Health Education Labor and Pensions Committee, claims to have the votes to pass a plan with a public option, Lynda Waddington reports in the Iowa Independent. Harkin believes that the full Senate should have the opportunity to vote on the public option, considering that it's part of four out of the five bills that have been approved so far.

The fight for a public option isn't over yet. To date, all of the other health reform bills that are out of committee include a strong public option. The next step is putting these bills together to create the final legislation for the House and Senate to vote on.

This post features links to the best independent, progressive reporting about health care and is free to reprint. Visit  Healthcare.newsladder.net for a complete list of articles on health care affordability, health care laws, and health care controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.

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Daily Pulse: It Could Happen to You

by: The Media Consortium

Wed Sep 16, 2009 at 12:32

By Lindsay Beyerstein, Media Consortium Blogger

Opponents of health care reform are trying to pit the insured against everyone else. Conservative Republicans like Rep. Mike Pence warn that if we get a public option, millions of Americans will lose their private coverage because so many employers will stop offering private insurance. What Pence doesn't say is that right now, employers can stop providing insurance at any time and their workers will have nothing to fall back on. As costs rise, fewer and fewer employers are providing any health insurance at all.

Most insured people have no idea how fragile their coverage is under the status quo.

The Uptake carries President Obama's address on the uninsured, in which he hammered home the message that anyone under 65 can lose their coverage at any time. Luckily for those over 65, they have a popular public option, Medicare.

There are lots of ways to become uninsured, including job loss, employers cutting off benefits, or insurers kicking customers off the rolls. As Obama said:

Over the last twelve months, nearly six million more Americans lost their health coverage - that's 17,000 men and women every single day. We're not just talking about Americans in poverty, either - we're talking about middle-class Americans. In other words, it can happen to anyone. And based on a brand-new report from the Treasury Department, we can expect that about half of all Americans under 65 will lose their health coverage at some point over the next ten years.

It's common knowledge that insurance companies drop customers with preexisting conditions and cut paying customers off when they get sick. It might surprise you to learn that domestic violence counts as a preexisting condition in many states.

Amie Newman of RH Reality Check reports that the insurance industry figured out what feminists have been saying for decades: Once a man becomes a batterer, chances are he'll continue to abuse his wife with increasing brutality. If you're a human being, that's an outrage and a tragedy. If you're a conscience-free health insurance provider, it's a big red flag to drop victims because their wounds will cost you money. This is the logic of for-profit health insurance in a microcosm: Identify the most vulnerable and purge them because they hurt your bottom line.

Meanwhile, the Senate Finance Committee is set to unveil its long-awaited bill today. The committee will vote on the bill next week. We'll examine the bill in tomorrow's Pulse.

After a seemingly endless quest for a bipartisan bill, Finance Chairman Max Baucus (D-Mont) is signaling that he's prepared to move ahead without GOP support. Good thing, too. Sen. Chuck Grassley (R-Iowa) swears he's serious about bipartisanship, according to the Iowa Independent, but he spent the summer telling tall tales of death panels and fundraising as an opponent of "Obamacare." Sen. Susan Collins (R-Maine), one potential Republican swing vote, now says she rejects the very idea of public/private competition, according to Steve Benen at the Washington Monthly.

Finally, you can use the Washington Independent's new Public Option Scoreboard to keep track of every senator's position, based on their public statements.

This post features links to the best independent, progressive reporting about health care and is free to reprint. Visit Healthcare.newsladder.net for a complete list of articles on health care affordability, health care laws, and health care controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.

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Weekly Audit: Depression-Era Inequality, Only Worse

by: The Media Consortium

Tue Aug 18, 2009 at 11:06

By Zach Carter, TMC MediaWire blogger

A new study by Economist Emmanuel Saez revealed this week that income inequality in the U.S. is more severe today than at any time since World War I, and the current recession is taking its heaviest toll on the worst-off members of our society. As our government rebuilds the financial sector using taxpayers' money, it's important to remember that both financiers and the government are responsible to our communities, not just bank shareholders. If we want to strengthen our country's economic foundation, we need to demand better wages for workers and an end to all kinds of predatory lending.

Saez's new data on income inequality is, as Paul Krugman put it, "truly amazing." Saez, who teaches at the University of California at Berkeley, found that the top 0.01% of U.S. earners had 6% of total U.S. wages, more than double the level in 2000. Earners in the top 10%, meanwhile, took home an astonishing 49.7% of all wages. That gap is larger now than during the Great Depression or the Gilded Age of the Roaring '20s.

"We're seeing Depression-era inequality again-only now it's slightly worse," writes Steve Benen for The Washington Monthly. Benen also notes that this level of inequality is not an inevitable consequence of a market economy: It's an extreme historical aberration. In the U.S., prosperity for much of the 20th Century was shared. But in 2007, at the economic bubble's peak, the wealthy simply got wealthier.

In that context, it is beyond absurd that the government is allowing 8-figure bonuses to be doled out by bailed out banks. Writing for Salon, Robert Reich dissects the policy implications of Citigroup's plans to pay its top executives an average of $10 million this year and award over $100 million to its top trader, a man who literally owns a castle in Germany. Citigroup was one of the most reckless U.S. banks during the housing bubble, a major subprime offender that received $45 billion in direct bailout money, as well as hundreds of billions in federal guarantees. How much is $45 billion? With the median U.S. home price at $174,100, that's the full market price of over 258,000 foreclosed homes. The company says that $10 million a head is necessary to attract and maintain top "talent," which Reich notes is a somewhat misleading term, given recent history. The problem is not just that Citigroup and other Wall Street firms are paying tons of money to a few people, it's that these people are being rewarded for the same kind of activities that got us into this mess to begin with: Risky, highly leveraged securities trading.

"Over the last several years Wall Street has exhibited a truly astonishing lack of talent," Reich says, noting that, "The Street is back to the same, relentlessly untalented tactics that made it lots of money before the meltdown-which also forced taxpayers to bail it out, caused the world economy to melt down, and tens of millions of people to lose big chunks of their life savings."

In truth, Reich argues, most large financial firms in the U.S. are much more like public utility companies than private-sector businesses. Even in good times, they depend on government guarantees and other support systems to function. In bad times, we bail them out. Instead of paying financiers tens of millions of dollars to reinforce a flawed system, Reich argues that we should impose rules that result in salaries similar to the public utilities sector, where top earners are generally restricted to 6-figure incomes.

The American Prospect features two pieces emphasizing problems in the current financial sector. Under a law known as the Community Reinvestment Act (CRA), enacted in 1977 we require banks to make loans in communities where they collect deposits. The loans have to be to dependable borrowers and they have to be relatively inexpensive. The law works very well-institutions covered by it made only a tiny fraction of the high-interest subprime loans that brought down the financial sector, as National Community Reinvestment Coalition President John Taylor notes for the Prospect. But CRA only applies to actual banks. You know, the places where you deposit your paychecks. CRA does not apply to subcompanies owned by the same corporation, and it does not apply to giant Wall Street securities firms like Bear Stearns and Goldman Sachs. Taylor says we need to expand CRA to cover these other big players in the financial world.

Why? As Alyssa Katz details in a piece for the Prospect funded by The Nation Institute, many Wall Street firms are bidding on foreclosed properties and selling them at rip-off rates to low-income borrowers.

But as Mary Kane notes for The Washington Independent, banks have also devised several methods of making money without making a loan. By charging tremendous fees on borrowers for minor infractions, banks generate billions of dollars without producing anything of social value. One of the worst forms of abuse, Kane writes, comes in the form of overdraft fees. When you withdraw too much money from your bank account, the bank fronts you the money, and then charges you a fee for this "protection." The trick is, banks almost never tell you that this has occurred, and often play around with the timing of your charges and deposits to maximize the fees they collect. Banks are on track to collect $38.5 billion in such fees this year alone. The worst part is, the fees come from the poorest customers-rich people don't overdraw their bank accounts, because they have tons of money.

In the case of credit cards, banks routinely slap borrowers with outrageous fees and interest rate hikes when the borrowers are making payments on time. Over the years, banks have targeted younger and younger credit card customers, as Adam Waxman notes for WireTap. After years of declining wages for all but the wealthiest citizens, consumers have been turning to pricey plastic to finance basic necessities.

Sadly, corporate America does not seem very focused on helping workers establish their financial independence. The Real News talks with Richard Wolff, an economist with the New School who emphasizes that, while worker productivity has jumped in recent months, wages have not made the corresponding increases. Quarterly productivity numbers tend to jump around a lot, but the trend of not compensating workers for improved efficiency has been around for years.

In a consumer-driven economy, major problems can't be fixed by giving lots of money to a few people, especially if those few people are already rich. To support broad, meaningful economic growth, we need to tailor our policies that empower those on the lower rungs of the economic ladder. And when we bail out giant corporations with taxpayer money, we need to make sure those companies arrange their business to improve the lot of taxpayers.

This post features links to the best independent, progressive reporting about the economy and is free to reprint. Visit StimulusPlan.NewsLadder.net and Economy.NewsLadder.net for complete lists of articles on the economy, or follow us on Twitter. And for the best progressive reporting on critical health and immigration issues, check out Healthcare.NewsLadder.net and Immigration.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.

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Weekly Immigration Wire: 287(g) Makes Hard Times Harder

by: The Media Consortium

Thu Aug 06, 2009 at 11:25

By Nezua, TMC Mediawire Blogger

The number of undocumented immigrants coming into the U.S. is plunging, as The Washington Independent's Daphne Eviatar reports. And yet, the White House is still ramping up harsh detainment measures like 287(g),  which is already linked to abusive practices. If Obama continues to fall back on harsh stopgap measures and leaves comprehensive immigration reform for next year, he greatly increases the risk that it won't pass at all.

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Weekly Pulse: Angry Mob Demands the Status Quo

by: The Media Consortium

Wed Aug 05, 2009 at 13:43

By Lindsay Beyerstein, TMC MediaWire Blogger

By now it's clear that the Senate Finance Committee won't cough up a healthcare bill before the summer recess. As Nick Bauman points out in Mother Jones, the delay is sure to sap momentum for reform. Worse, the break will give healthcare reform's opponents more time to spread fear, uncertainty, and doubt. Disinformation is already running wild.

Dave Weigel of the Washington Independent points to July 31 memo from House Minority Leader John Boehner (R-Ohio) entitled "A Very Hot Summer," in which he announces that the GOP has launched an "entrepreneurial insurgency" against healthcare reform.

And now the National Republican Congressional Committee (NRCC) is openly celebrating the angry mobs of anti-reform protesters that are disrupting town hall meetings and shouting down pro-reform Democrats, as Eric Kleefeld of TPM DC notes. "Roaring Chants Interrupt Healthcare PR Campaign As Dems Lose Their Cool and Town Halls Turn Into 'Town Hells'," gloats one NRCC email message to reporters. This campaign's official logo depicts a donkey being roasted alive.

If the reformers used the NRCC's playbook, reporters would be deluged with retaliatory tweets claiming that teabaggers are killing babies and raping old women, but facts are stubborn things. As of press time, the Pulse is not aware of any ritual sacrifices by teabaggers at townhall meetings.

Steve Benen of the Washington Monthly warns that the GOP's strategy to egg on the wingnuts could have unintended consequences:

"It's probably the one angle the corporate interests and their lobbyists haven't considered: the unintended consequences of rallying confused right-wing activists to shout down policymakers who'll improve their health care coverage. Once you wind up the fanatics and point them in the direction of a town-hall meeting, you never really know what they're going to say, do, wear, or hold. In at least one case at the Doggett event, there really was a sign with Nazi "SS" lettering."

Top Obama adviser David Axelrod denounced groups like Conservatives for Patients Rights for stoking the protesters. Axelrod pledged to aggressively combat misinformation about the Obama administration's reform plan, as Rachel Slajda of TPM reports. Is it a coincidence that Axelrod was abruptly issued a Secret Service detail this week without explanation?

In the American Prospect, Paul Waldman describes how Republican members of Congress are promulgating the urban legend that the healthcare bill includes mandatory euthanasia:

"In some tellings, government bureaucrats will visit the elderly to force them to choose their manner of death. In another, their doctors will be required to "tell them how to end their life sooner" (this one is being popularized by Betsy McCaughey, as despicable a merchant of lies as has ever slithered through our public debate). One GOP member of Congress after another has simply dispensed with all the complexity and said that the Democratic health plan will cause seniors to be "put to death by their government" or some variation thereof."

The rumor grew out of a provision to reimburse doctors for end-of-life care, including discussions of living wills, as Waldman explains.

Speaking of misinformation, Rep. Kent Sorenson (R-Iowa) is tweeting nonsense about a shadowy healthcare commissioner who decide's everything for you, as Jason Hancock of the Iowa Independent reports. "Page 42 healthcare bill 'Health Choices Commissioner' will decide health benefits for you. You will have NO choice," Sorenson breathlessly informed his followers. In fact, according to an analysis by the Pullitzer Prize-winning website PoliFact, the healthcare commissioner would regulate insurance companies to make sure they don't exclude people for preexisting conditions.

At the rate misinformation is mutating, perhaps Republicans will have convinced themselves that the bill will create Health Care Commissar who will involuntarily euthanize you and make your grandmother have an abortion by tomorrow morning.

Congress will return from summer break on September 4. Expect heated rhetoric and increasingly frenzied political theater in the weeks ahead.

This post features links to the best independent, progressive reporting about healthcare and is free to reprint. Visit  Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.

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Weekly Pulse: The Rocky Road to Reform

by: The Media Consortium

Wed Jul 22, 2009 at 12:14

Weekly Pulse: The Rocky Road to Reform
by Lindsay Beyerstein, TMC MediaWire Blogger

Healthcare is dominating domestic politics this week, as Congress and President Obama outline their visions for reform. The president is pushing Congress to pass a bill that keeps healthcare costs in check before the August deadline. Obama must have been disappointed when the non-partisan Congressional Budget Office (CBO) announced last week that the Dem's healthcare bills won't cut spending. The president won't sign a bill that doesn't contain cost cuts, so legislators know they'll have to tweak the bill.

Obama's strenuous efforts to pass healthcare reform have invited comparisons to Franklin Roosevelt and his New Deal, which created the American social safety net. In Salon, Michael Lind argues that Obama's insistence on tying health insurance to employment actually betrays the legacy of the New Deal:

We decided that when it came to benefits our guiding principle should be a "citizen-based social contract." We chose this phrase, not to discriminate against non-citizens, but to express two ideas: first, that benefits like healthcare ought to be not a privilege but rather an entitlement of all citizens in our democratic republic, and second, that all benefits should be detached from employers and follow individuals through their lives. In thinking about healthcare, we rejected various options that would not move us toward a citizen-based social insurance system. Unfortunately, the health plan being promoted by Obama and Congress is based on one of those bad options.

Special interests are sparing no expense in their final campaign to influence healthcare reform. Senate Finance Committee Chair Max Baucus, D-Mont., was charged with crafting a public plan for a bipartisan seal of approval, but raked in more than $3 million from healthcare lobbyists and industry groups between 2003 and 2008, according to Mike Lillis of the Washington Independent. Baucus announced that he was swearing off healthcare bucks after June 1 in order to avoid the "appearance" of conflict of interest.
Aides for Baucus told The Post that the Finance chairman stopped accepting contributions from healthcare PACs after June 1 to eliminate the appearance of conflicts of interest. But he's not doing a very good job following through. On June 15, according to the Federal Election Commission, Baucus accepted $5,000 from the Schering Plough Corporate Better Government Fund.

Baucus's staff say the Schering Plough money has since been returned. No word on whether the money got sent back before or after the story hit the media.

Advocates of single payer did score a victory last week. Rep. Dennis Kucinich (D-Ohio) managed to pass an amendment to the House bill that gives states the option of creating their own single payer healthcare systems. John Nichols of The Nation explains that the Kucinich amendment opened the door to single payer. As Nichols points out, Canada didn't start with a national single payer system. The province of Saskatchewan created its own healthcare program that became the model for Canada's celebrated Medical Services Plan.

Josh Holland of AlterNet says the Kucinich amendment may salvage healthcare reform. That sounds a bit hyperbolic, but it's definitely a step forward. For additional background, check out Truthdig's interview with Kucinich.

Abortion was back in the news this week. The Prospect's Dana Goldstein notes that the White House appears to be vacillating as to whether abortions will be covered by national healthcare. Health and budget guru Peter Orzag danced around the issue on the last Meet the Press. This kind of equivocation is part of a pattern: Back in March, senior Obama domestic policy adviser Melody Barnes, a former Planned Parenthood board member, insulted the intelligence of viewers of the Christian Broadcasting Network by claiming that she hadn't even discussed the issue with Obama.

Should the anti-abortionist zealot accused of gunning down Dr. George Tiller be charged as a domestic terrorist? I weigh the pros and cons in my new piece at RH Reality Check.

Finally, Laura Miller of Salon favorably reviews Ryan Grim's new book, This is Your Country on Drugs, an offbeat social history of America's twin love affairs with drugs and moral panics over drugs.

With the August deadline looming, legislators will be scrambling to get their respective bills in shape in time to pass healthcare reform through the budget reconciliation process. Odds are that the bills will be further scaled back and watered down in the process.

This post features links to the best independent, progressive reporting about health care. Visit Healthcare.newsladder.net for a complete list of articles on healthcare affordability, healthcare laws, and healthcare controversy. For the best progressive reporting on the Economy, and Immigration, check out Economy.Newsladder.net and Immigration.Newsladder.net.

This is a project of The Media Consortium, a network of 50 leading independent media outlets, and created by NewsLadder.

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Weekly Mulch: The Pros and Cons of the Climate Bill

by: The Media Consortium

Fri Jul 10, 2009 at 11:25

by Raquel Brown, TMC MediaWire Blogger

The American Clean Energy and Security Act (ACES), also known as the Waxman-Markey bill, narrowly passed in the U.S. House of Representatives at the end of June. The ACES bill seeks to mitigate climate change via emission reductions, investments in energy technology, creation of clean energy jobs, and rigid standards for energy efficiency. Check out Grist for a valuable breakdown of the act.

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The Washington Independent Begins

by: Matt Stoller

Mon Jan 28, 2008 at 10:12

( - promoted by Paul Rosenberg)

The Washington Independent launched today.  It's sort of a progressive Politico, well-done and strongly credible reporting but not tilted horribly to the right.

There's not a lot of straight reporting of all the nasty stuff that goes on in DC.  Blogs have sort of broken into the pundit commentary sphere, but all the billion dollar plus amendments don't get any scrutiny at all.  Web-based models and noncommercial sites like this could be a serious fix.

Go give 'em a read and bookmark it.

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