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The good, the bad and the ugly of the Gang-of-10 drilling deal, Part 2: Something for nothing?

http://images.rottentomatoes.com/images/movie/coverv/26/222726.jpgMajor legislative compromises are unsatisfying by design. They invariably have good, bad, and ugly parts.

I have previously argued that the Democrats would be smart to compromise on offshore drilling (see “Since offshore oil is de minimis, why shouldn’t Obama and the Dems make a deal? Part 1“) The rest of this series will examine whether the so-called Gang-of-10 deal is in fact a smart compromise.

That question can be rephrased as, does the good beat out the bad and the ugly [as, of course, Clint did in the epic spaghetti western]?

I will focus here on the main good-and-bad pieces of the “New Energy Reform Act of 2008.” Part 3 will cover the smaller pieces, including the one I think is really, really ugly.

THE GOOD

The best part by far is:

Enhancing Conservation [sic]
To ease gas prices and protect our environment during the transition, the proposal includes a significant federal commitment to promoting conservation and efficiency [sic]. These include:
• Extending renewable energy, carbon mitigation and energy conservation and efficiency tax incentives, including the production tax credit, through 2012 to create greater certainty and spur greater investment.

[Note to Gang-of-10 Dems: Please stop buying into the GOP frame that renewables are the same as "conservation and efficiency." That's how they try to pigeonhole all progressive solutions -- Doing with less. New renewables, including solar baseload, are a serious supply option that are all but certain to deliver more new kilowatt hours through 2050 and beyond than new nuclear power plants and coal with carbon capture and storage combined.]

Assuming this includes the solar investment tax credit along with the PTC, then this is far and away the most important piece of the legislation. Renewables have had to contend with uncertain year-by-year renewal for a long time. Consider the effect on the wind power, as this chart from a Union of Concerned Scientists study shows:

Read more

Yglesias

Convention Bumps

Convention Bump

The idea of a “convention bump” is the kind of thing I’m instinctively suspicious of, but apparently the best political science out there indicates that it’s a real phenomenon. Via John Sides, Tom Holbrook has a discussion of the issue. I reproduced his key chart above.

Economy

Progressive Ideas For Reviving The Middle Class

Our guest blogger is Amanda Logan, a Research Associate at the Center for American Progress.

On Meet the Bloggers on Friday, I – along with Isaiah Poole, host Cenk Uygur, and Sen. Bernie Sanders (I-VT) – discussed the fact many Americans are hurting while only a small few continue to prosper. As CAP Senior Fellow Scott Lilly explained in his recent paper on “Bushenomics,” the Bush administration has overseen a period in which the overall U.S. economy grew by 18 percent, highly driven by a 19 percent increase in the hourly productivity of workers, while the average income for America’s middle class families has actually declined by 2 percent.

Meanwhile, this administration didn’t exactly support the increase in the minimum wage, has opposed the expansion of the Earned Income Tax Credit and increasing the opportunities for workers to unionize, chiefly by coming out against the Employee Free Choice Act, all while implementing very regressive tax cuts that have allotted 30 percent of the cuts to the top one percent earners in the nation.

It seems like the some members of the media and law makers are at least beginning to get a sense of the severity of the situation that many middle-income Americans, let alone lower-income Americans, have been experiencing for quite some time. Numbers don’t lie, and recent economic data across the board have highlighted everything from the weakening labor market and stagnant wages, to lackluster GDP growth, to sharp increases in the cost of necessities, to lower consumer spending, which is very important to note given that the current business cycle has largely been driven by consumer spending. Read more

Yglesias

Springtime for Autocrats

Berlin Wall

Bill Keller surveys the scene and proclaims a “springtime for autocrats” with China and Russia as autocratic states capable of playing a substantial role on the world stage. Of course it’s hard to know if things would look that way from the perspective of, say, Sao Paulo, the largest city of a very large country that is now both more democratic and more prosperous than it’s been in quite some time. And similarly, the 1990s were hardly springtime for Japan, also a large and important democracy. And, again, there’s India. Over the past ten years we’ve seen something of a waning of U.S. geopolitical influence (though one can overstate this) and something of a waxing of influence of most other important countries. Some of these countries are autocratic and others democratic. Some of this trend is inevitable “catch-up” and some reflects U.S. policy errors, but the trend is fairly general and shouldn’t really be seen as representing a specific ideological turn against liberalism or democracy.

Keller, meanwhile, observes of Russia and China that “[b]oth countries have calculated that you can buy a measure of domestic stability if you combine a little opportunity with an appeal to national pride.” That seems about right as an explanation of why neither Moscow nor Beijing sees the need for substantial reforms or faces unmanageable public unrest. It’s worth noting, however, how absolutely normal this is — patriotic and nationalistic sentiments are cynically manipulated by incumbent politicians in democratic countries every bit as much as in Russia or China. And of course it’s well-known that robust economic growth tends to keep the opposition party out of power, whereas recession makes people want to throw the bums out.

It’s hear that I think the analogies start to break down. The Communist Party in China has long since ceased having any particularly compelling story to tell about why it needs to maintain a monopoly on political power. Crackdowns on the rights of ethnic minority groups like the Tibetans have a certain popular appeal, but patriotism can’t get the regime off the hook for being oppressive to the country’s vast Han Chinese majority. Rather, popular discontent is manageable because there simply isn’t that much popular discontent. Chinese people tell Pew that they’re very happy with the direction of their country, with the state of its economy, and with their own personal levels of well-being. The regime is staying in power, in short, mostly in virtue of the fact that it’s doing a pretty good job and delivering reasonably effective public policy.

Coyote

In rare instances — Singapore, for example — this kind of thing can go on for a long time. But to me the PRC government is a bit like Wile-E-Coyote mostly being kept afloat by its own forward momentum. It doesn’t seem especially likely to me that China will go on and on and on without experiencing a substantial economic crisis or a serious foreign policy blunder forever. And any such crisis is likely to lead to a political crisis. What that would lead to, I couldn’t say. People sometimes seem to assume that the alternative to China’s current course is democratization, but it could just as easily be clampdown and insularity or chaos and destruction. But for things to just keep on keeping on would be genuinely odd and require a not-especially-likely combination of competence and good luck for Chinese officials.

Putin’s Russia, by contrast, is securing its geopolitical influence and economic prosperity the old-fashioned way — by seeing the value of its hydrocarbon exports boom. This is nothing really new. When I was in Russia in 1998 everyone old enough said the best of times was not the current era of glorious democracy but rather the Brezhnev years when high Soviet oil revenues allowed the government to make cheap consumer goods available as never before or since. Eventually the oil boom collapsed in the 1980s, forcing the regime to contemplate reforms. Thus, barring some kind of huge blunder, Putin should be in excellent shape until either the price of hydrocarbons falls substantially or else Russia’s reserves start to run out. People used to sometimes refer to Russia as “Upper Volta with missiles” (“Upper Volta” = the old name for Burkina Faso) but these days it’s more like Saudi Arabia with missiles and we should expect that situation to last until either Russia’s reserves run out or else hydrocarbon prices crater.

Yglesias

Dobbs on Georgia

Michael Dobbs offers a useful “everyone calm down now” bit of perspective on Russia-Georgia war guilt:

Actually, the events of the past week in Georgia have little in common with either Hitler’s dismemberment of Czechoslovakia on the eve of World War II or Soviet policies in Eastern Europe. They are better understood against the backdrop of the complicated ethnic politics of the Caucasus, a part of the world where historical grudges run deep and oppressed can become oppressors in the bat of an eye.

The whole piece is well-worth reading. I think it tends to re-enforce the point that soon after the fighting ends, people outside the region will swiftly forget this whole thing ever happened, contrary to the many indications from conservatives over the past week and a half that we were watching history-making events. Then at some point in the future there will, no doubt, be a new flare-up of some kind in the neighborhood.

Yglesias

Lugar on the G8

Wolf Blitzer asks Richard Lugar if kicking Russia out of the G8 is a good idea:


Lugar’s a generally sensible guy on national security issues, people should probably ask him if he agrees with more of McCain’s agenda on these topics.

Politics

McCain Jokes About His Definition Of The Rich: ‘How About $5 Million?’

Last night, during his Saddleback Church presidential forum, Pastor Rick Warren asked both Sen. John McCain (R-AZ) and Sen. Barack Obama (D-IL) to “define rich.” With regard to tax brackets, “where do you move from middle class to rich?” Warren asked. Obama said, “if you are making $150,000 a year or less, as a family, then you’re middle class.”

McCain, however, dismissed Warren’s question, asking in jest, “How about $5 million?”

WARREN: Everybody talks about, you know, taxing the rich, but not the poor, the middle class. At what point, give me a number, give me a specific number. Where do you move from middle class to rich? [...]

MCCAIN: How about $5 million? No, but seriously, I don’t think you can, I don’t think seriously that the point is I’m trying to make, seriously, and I’m sure that comment will be distorted but the point is…that we want to keep people’s taxes low, and increase revenues. … So, it doesn’t matter really what my definition of rich is because I don’t want to raise anybody’s taxes. I really don’t.

Watch it:

McCain is right — millionaires are rich. In fact, those making $5 million per year or more are wealthier than 99.99% of all Americans. All but the nation’s wealthiest five percent, have household incomes of less than $174,000 per year.

But while McCain now says “it doesn’t matter really what my definition of rich is,” in 2000, he criticized tax cuts proposed by then-presidential candidate George W. Bush because they would benefit the rich “at the expense of middle-class Americans.” McCain said that he believed Bush was targeting the wrong individuals:

I don’t think the governor’s tax cut is too big–it’s just misplaced. Sixty percent of the benefits from his tax cuts go to the wealthiest 10 percent of Americans–and that’s not the kind of tax relief that Americans need. … I don’t believe the wealthiest 10 percent of Americans should get 60 percent of the tax breaks. I think the lowest 10 percent should get the breaks.

McCain summarized his position at the time saying, “I’m not giving tax cuts for the rich.” Now McCain is proposing to do exactly that. McCain — who, by his own definition, is rich — would get a $300,000 tax break if his proposals were enacted. McCain would decrease middle-class Americans’ tax bills by just $319.

Digg it!

Transcript: Read more

Yglesias

Obama’s Challenge

Rick Hertzberg writes about a forthcoming book from Bob Kuttner called Obama’s Challenge. It sounds very interesting. Also interesting is this — unlike a normal political book that’s finished, it’s not going to float around in the ether for months waiting for me to try to scheme my way into possession of a free copy. Instead, says Hertzberg:

Kuttner’s book, by the way, is a pioneering exercise in cutting-edge publishing. The publisher, Chelsea Green, plans to have two thousand copies ready for distribution at the Democratic National Convention. That will mean a lapsed time of about one week between final edit and finished book. (I’ve written blog posts that took longer to make their way online.) The book won’t be in the stores till September 15, but you can get it sooner, thanks to a deal Chelsea Green has made a with BookSurge, Amazon’s new print-on-demand subsidiary. You order it, they print it and bind it, and it’s in your hands forty-eight hours later.

That’s totally awesome. The publishing industry is badly in need of a shakeup in its methods and business models, and this sounds like a step in the right direction. My order’s been placed.

Politics

Jindal stumped when asked to name new ‘big ideas’ that McCain is proposing.

This morning on NBC’s Meet the Press, host David Gregory asserted that the Republican Party “used to be the party of big ideas.” Gregory then asked his guest Louisiana Gov. Bobby Jindal (R-LA), “What’s the big idea Senator McCain is campaigning on?” Jindal responded, “I think there’s several,” but couldn’t provide an answer. Gregory asked again, “Where are the new big ideas of the Republican Party that John McCain is, is championing?” And again Jindal couldn’t provide an answer. Watch it:

Jindal is just the latest McCain surrogate to be stumped when asked to defend McCain’s policies. Earlier this month, former Gov. Mitt Romney (R-MA) couldn’t name a single McCain accomplishment on energy in his long congressional career. Similarly, Gov. Mark Sanford (R-SC) recently drew a blank when asked to name a major economic policy that Bush and McCain do not agree on.

Climate Progress

Global Boiling: Our New Era Of Catastrophic Wildfires

In the second report of its “Wake Up Call” series on global warming’s worsening of extreme weather, the National Wildlife Federation describes how the western United States has entered a new era of catastrophic wildfires, brought on by global warming, past forest management, and poor land development.

The frequency of large wildfires and the total area burned have been steadily increasing in the Western United States. Warmer springs and longer summer dry periods since the mid-1980s are linked to a four-fold increase in the number of major wildfires each year and a six-fold increase in the area of forest burned compared with the period between 1970 and 1986. The fire season stretches about 78 days longer and individual fires last about 30 days longer.

In a video, the National Wildlife Federation’s climate scientist, Amanda Staudt, describes how “global warming will increase the risk of wildfires.” Watch it:

Global warming increases wildfire risk in several ways. From the report, Increased Risk of Catastrophic Wildfires: Global Warming’s Wake-Up Call for the Western United States:

– Longer fire seasons will result as spring runoff occurs earlier, summer heat builds up more quickly, and warm conditions extend further into fall. Western forests typically become combustible within a month of when snowmelt finishes. Snowpack is now melting 1 to 4 weeks earlier than it did 50 years ago.

– Drier conditions will increase the probability of fire occurrence. Summertime temperatures in western North America are projected to be 3.6 to 9 degrees Fahrenheit higher by mid-century, enhancing evaporation rates, while precipitation is expected to decrease by up to 15 percent.

– More fuel for forest fires will become available because warmer and drier conditions are conducive to widespread beetle and other insect infestations, resulting in broad ranges of dead and highly combustible trees. Higher temperatures enhance winter survival of mountain pine beetles and allow for a more rapid lifecycle. At the same time, moderate drought
conditions for a year or longer can weaken trees, allowing bark beetles to overcome the trees’ defense mechanisms more easily.

– Increased frequency of lightning is expected as thunderstorms become more severe. In the western United States a 1.8 degree Fahrenheit increase in temperature is expected to lead to a 6 percent increase in lightning. This means that lightning in the region could increase by 12 to 30 percent by mid-century.

Not only is global warming worsening wildfires (despite Joel Achenbach’s protestations), but catastrophic wildfires are hastening global warming, by rapidly releasing carbon it took the forests decades, even centuries, to store:

In recent years, fires in the western United States have released carbon dioxide into the atmosphere equivalent to about 11 percent of their annual fossil fuel emissions. In some Western states a fire spanning over just a couple months can emit nearly as much carbon dioxide as its total annual fossil fuel emissions.

This vicious cycle is one of many dangerous experiments humanity is running on its only planet through unmoderated pollution. Recent scientific reports have discussed how oceanic dead zones caused by fertilizer runoff and air pollution have reached catastrophic levels. Atmospheric oxygen is declining, reaching hazardous lows in urban centers. And rapidly declining arctic sea ice is leading to permafrost melt, which has kept frozen thirty percent of all soil-based carbon for hundreds of thousands of years.

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