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Obama takes aim at his stimulus opponents: ‘You’re headed for a cliff.’

Tonight, in an address before a House Democratic retreat, President Obama issued a strident defense of his economic recovery package:

We can’t embrace the losing formula that says only tax cuts will work for every problem we face; that ignores critical challenges like our addiction to foreign oil, or the soaring cost of health care, or falling schools and crumbling bridges and roads and levees. I don’t care whether you’re driving a hybrid or an SUV — if you’re headed for a cliff, you’ve got to change direction. That’s what the American people called for in November, and that’s what we intend to deliver.

Republicans — and even some Democrats — have mounted attacks on the economy recovery package with a variety of superfluous attacks. Rep. Eric Cantor (R-VA), for instance, said, “This was not a stimulus bill. It was a spending bill.” Obama fired back: “So then you get the argument, well, this is not a stimulus bill, this is a spending bill. What do you think a stimulus is? That’s the whole point. No, seriously. That’s the point.” (Watch the video here.)

Update

Some other highlights from the speech:

– “I welcome this debate. But come on, we’re not — we are not going to get relief by turning back to the very same policies that for the last eight years doubled the national debt and threw our economy into a tailspin. ”

– “When you start hearing arguments on the cable chatter, just understand a couple of things. Number one, when they say, well, why are we spending $800 billion — we’ve got this huge deficit? First of all, I found this deficit when I showed up.”

– “Now, in fact, when we announced the bill, you remember — this is only about, what, two weeks ago? When we announced the framework — and we were complimented by Republicans, saying, boy, this is a balanced package, we’re pleasantly surprised. And suddenly, what was a balanced package needs to be put out of balance?”


Update

,Read the full speech here.

Yglesias

Breaking: No Stimulus Tonight

By Brian Beutler

Harry Reid just announced that the stimulus (and therefore the Nelson-Collins proposal) will have to wait until tomorrow. If it’s not passed by then (he says he’s “cautiously optimistic) there may be a weekend session and a cloture vote on Sunday.

Climate Progress

West Antarctic ice sheet collapse even more catastrophic for U.S. coasts

slr-6m.jpg

The fate of FL and LA if we’re myopic and greedy enough to let the West Antarctic Ice Sheet (WAIS) collapse [click to see entire SE coast].

A new study in Science finds that sea level rise from a collapse of the WAIS would likely be 25% higher for North America than previously estimated:

The catastrophic increase in sea level, already projected to average between 16 and 17 feet around the world, would be almost 21 feet in such places as Washington, D.C., scientists say, putting it largely underwater. Many coastal areas would be devastated. Much of Southern Florida would disappear.

This article has already started to make news around the globe (Reuters story here). But, frankly, divining the difference between a rise of 16.5 feet (an incalculably devastating catastrophe) and 21 feet (an incalculably devastating catastrophe) is like trying to count the number of devils on a pin.

Nonetheless, WAIS collapse is all but inevitable given business-as-usual warming of 5-7°C. As I explained in my book:

Perhaps the most important, and worrisome, fact about the WAIS is that it is fundamentally far less stable than the Greenland ice sheet because most of it is grounded far below sea level.

For a longer discussion of WAIS and its unique instability, see “Antarctica has warmed significantly over past 50 years.”

So what is new in the Science article, “The Sea-Level Fingerprint of West Antarctic Collapse” (subs. req’d)? Study coauthor and geophysicist Jerry X. Mitrovica, director of the Earth System Evolution Program at the Canadian Institute for Advanced Research, explains:

Read more

Politics

78 percent of women say men and women do not receive equal pay for equal work.

In a new Rasmussen poll, 78 percent of American women said that “men and women do not receive equal pay for equal work in the United States.” Only 53 percent of men agreed. In the same poll, 49 percent of women attributed the unequal pay to discrimination while only 20 percent of men believe discrimination is the problem. Last week, President Obama signed the Lilly Ledbetter Fair Pay Restoration Act, which boosts workers abilities to bring pay discrimination lawsuits.

Yglesias

VOLT

by Ryan Avent

Speaking of green jobs and the carmakers, the Post reports today that the Volt, GM’s electric savior, will finally debut in 2010, though only in two metropolitan areas and probably after Toyota releases a plug-in version of the Prius. San Francisco and Washington are the lucky winners of the Volt sweepstakes. The car will probably flop without improvements in infrastructure (namely, plugs in all the places people tend to park their cars), and since the government has committed to keeping GM in business for the time being, it will probably mandate that SF and DC pay, out of local budgets, to make the changes.

But even if GM gets the Volt ready by 2010 (which assumes that GM survives until 2010), and Toyota hasn’t already sucked up much of the plug-in market, and the initial cities make the necessary infrastructure changes, GM will have its work cut out for it. The Volt is likely to debut at a price between $30,000 and $40,000. That’s a lot to ask for what is basically an experimental car. One might think that something like carbon pricing could give the Volt a big cost advantage, but an optimal (and politically acceptable) carbon price level would probably increase gas prices by no more than 20 cents. The bulk of the emission reductions from carbon pricing aren’t going to come from personal automobiles.

High gas prices resulting from supply and demand shifts could increase demand for the Volt, but this is a double-edged sword for GM. Volt sales will rise, but the biggest market shift, at least in the short term, will be (as was the case last summer) from big, and largely American made, trucks and SUVs to small cars — a market in which American companies have been destroyed by foreign competition. It will be hard for Volt sales to offset continued deterioration in Detroit’s bread and butter markets.

One bit in the Post piece in particular got my attention:

It also helps to have an iconic car like the Volt close to Washington’s power brokers, who will soon be considering additional federal loans for the struggling automaker, said Roland Hwang, vehicle policy director at the Natural Resources Defense Council. After all, when natural gas debuted, buses using the alternative fuel ran regular routes past California’s state capital in Sacramento.

“You want your clean technologies to be very visible and build trust with public policy makers, even if city isn’t the ideal in demographics or in terms of infrastructure,” he said.

The punchline here is that Washington is home to one of the nation’s most successful heavy rail transit systems. Everyday, hundreds of thousands of workers are carried around the nation’s capital. Billions of dollars in private investment has been made near Metro stations. Just last month, Metro managed to carry over a million riders, well beyond its normal capacity, to and from the Inauguration. And the density facilitated by Metro has helped to make Washington and the inner suburbs extraordinarily green, with transportation emissions well below the national average (and well below those of their exurban counterparts in the metropolitan area).

Which isn’t to say that electric vehicles won’t be a part of the solution to climate change and a greener transportation system. They will be. It is to say that there might be far better uses of scarce government resources than piles of subsidies and assistance for the Chevy Volt and the company that makes it (which, it can’t be stated enough, devotes millions in lobbying dollars to fighting climate change legislation). If we’re going to support technologies, let’s at least support those with a record of success and proven demand.

Climate Progress

David Axelrod: Climate Legislation Is ‘Long Overdue’

David AxelrodOn Tuesday, Sen. Barbara Boxer (D-CA) stood with fellow Democratic members of the Senate Committee on Environment and Public Works to introduce principles for climate legislation, saying “We know that we have to act, and we intend to act.” David Axelrod, one of President Obama’s senior advisers, told E&E News that the effort by Congress to construct legislation to fight global warming is more than welcome:

We think that it’s healthy that there’s so much momentum in Congress to address this problem. It’s long overdue.

Boxer admitted that December is her working deadline for getting a bill “out of committee.” Other Senate chairs, including Energy and Natural Resources Chairman Jeff Bingman (D-NM) and Finance Chairman Max Baucus (D-MT) intend to weigh in on any legislation. “All of those committees,” Majority Leader Harry Reid (D-NV) told E&E News, “especially my old committee, EPW, have an important role to play for the Senate to produce a sound cap-and-trade bill that meets the president’s emission reductions objectives.”

At Climate Progress, Joe Romm therefore doubts climate legislation will be passed before 2010: “So this has to get through multiple Senate committees, pass the full Senate, be reconciled with whatever comes out of the House, and then pass both House and Senate again, and finally end up on Barack Obama’s desk.”

Meanwhile, President Obama continues to build a green-powered administration, with the selection of Robert Sussman and Lisa Heinzerling as senior EPA policy advisers, Todd Stern as the State Department climate envoy, climate justice leader Ron Sims as deputy secretary for the Department of Housing and Urban Development, and even new assistant White House chef Sam Kass, a strong supporter of local, sustainable, and healthy food.

Showing that Obama won’t just wait for Congress to act, yesterday the EPA and Department of Justice restarted a “national initiative, targeting electric utilities whose coal-fired power plants violate the law,” with a lawsuit against a Kansas utility whose coal-fired power plant has been in violation of the Clean Air Act for more than ten years. The case against Westar Energy had been held up by the Bush administration since 2003. A memo from Stephen Johnson’s deputy Marcus Peacock practically shut down all enforcement activity in 2005 .

Politics

Stimulus Update

By Brian Beutler

The Big Sensible Centrist amendment will be coming to the floor shortly. Who the hell knows what’s in it exactly, but it will reduce the size of the stimulus by somewhere between 50 and 100 billion dollars. If the proposals floating around earlier today are any indication, much of that money will come out of things like Pell grants and energy efficiency and, perhaps most importantly, state aid. That’s county hospital staff and public transportation service and teachers–possibly gone.

That amendment will likely pass as the price Reid had to pay to get maybe a handful of Republicans on board.

So, after a couple days of agonizing, is this an earth shattering disaster? Perhaps not. It’s not exactly good either. But forget the people on cable news who were alternately reading Obama’s obituary and claiming victory on his behalf. The argument shouldn’t be between those who think he won and those who think he lost–I don’t think those two camps really exist. It should be between those who on the one hand think this is the best bill we were ever going to get and those on the other who think it might’ve been approximately $100 billion better than it will be, if not for, among other things, 48 hours of miscues.

Health

Business Support For The Public Health Plan Option

competition2.jpgThe Institute for America’s Future has released another report about the role of a public health insurance plan in reducing health care costs and improving care quality. During the presidential election, all of the major Democratic candidates proposed some kind of public plan that would directly compete with private insurers within a new health insurance exchange.

Their theory was this: Insurer and hospital markets are increasingly dominated by large insurers and provider systems. These private insurers do not use their market power to “drive hard bargains with providers” and have no need to bargain with providers. A public plan would bring competition back to the health insurance business and force private insurers and hospitals to adopt the highest efficiency standards.

In other words, allowing patients the choice of a private plan or a public plan would re-invigorate the very same kind of free market principles of competition that conservatives traditionally champion. Private and public plans would have to deliver the highest quality at the lowest possible cost to attract patients, while the public plan will have the resources, market power, and incentive to “reshape the market practices to promote quality and cost effectiveness.”

This approach would not only bring us closer to universal coverage but it will also put us on the road towards a more efficient health care system (read: lower health care costs and premiums). But the idea isn’t very popular with the insurers. At last week’s Health Action Conference, Families USA President Ron Pollack suggested that health insurance companies are not willing to accept the pay cut that will come with the increased competition and that a public plan option (and how we pay for it) could become a sticking point in the health care debate.

In fact, some may establish a false dialectic that pits reformers/Democrats against the business community and insurers. But insurers or trade associations are not the voice of the business community (there is no monolithic business position). Many smaller firms, who are buckling under high insurance costs, believe that a public health plan would lower their health care costs . It will be important for progressives to highlight their voices in the larger health debate.

Climate Progress

Planned coal plants dropping like flies

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It looks like approval for eight more conventional coal plants now in the pipeline will be delayed and/or cancelled.

This time, the action is taking place in Lansing, Michigan, where Governor Jennifer Granholm has just called for a near-moratorium on the construction of new coal-fired power plants while state agencies consider “all feasible and prudent” alternatives.

In her State of the State address, Governor Granholm also pledged to reduce Michigan’s reliance on fossil fuel-generated electricity by 45 percent by 2020–an aggressive goal. She framed the pledge not in terms of greenhouse gases but in terms of dollars:

Read more

Media

ABC: Obama Is Hypocritical For Limiting Wall Street Pay While Having A ‘Lavish Lifestyle’

airforceone25.jpgYesterday, President Obama instituted a pay cap on bailed out businesses after it was revealed that Wall Street doled out an estimated $18.4 billion in bonuses last year. “If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” he explained.

In what appears to be an attempt to call Obama a hypocrite, ABC’s Scott Mayerowitz “reports” today that the President also has a “lavish lifestyle.” Under the title: “Obama’s Perks: Private Jet, Chef Tax-Free,” ABC notes that Obama earns $400,000 dollars a year and even has a private jet:

The president makes $400,000 a year, but hasn’t received a raise from Congress since 2001. He also gets a $50,000 annual entertainment expense account (any unused money at the end of the year must go back to the Treasury.)

Then there is the use of two private jets, Boeing 747s better known as Air Force One. And of course the constant security details, drivers, a private chef, a country vacation estate and the rent-free use of a well-known, 132-room mansion called the White House. The president also used to have a yacht, until Jimmy Carter sold it.

As its evidence that “corporate America” is upset, ABC said that “some Wall Street bloggers” are angry with the compensation cap. But the article cited only one blogger, Dealbreaker.com, who — apparently poking fun at Sen. Claire McCaskill’s statement — remarked, “Some accountability needs to be put in place. We won’t have them kicking sand in the face of taxpayers any longer.” Dealbreaker.com also suggests charging rent for White House tenants.

Comparing the President to Wall Street CEOs is absurd. The “private jet” that Obama uses is Air Force One, which is used as a security precaution and necessary for the dozens of staff and press that accompany the President on every trip. Each use of the jet by the President is regarded as a “classified military operation” in order to ensure the President’s safety.

Furthermore, Obama’s salary is set by Congress (whose members are elected by the public). CEO compensation is decided internally within the company, usually by its board of directors. The problem with recent excessive CEO compensation was that executives receiving federal funds were still rewarded for failure with tens of millions of dollars from their companies.

The President, on the other hand, does not get a bonus for his performance, good or bad. Indeed, Presidents Bush and Obama earn the same salary. County Fair at Media Matters has more.

Michael Wilson

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