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Climate Progress

St. Petersburg Times slams BP and Big Oil: “It’s becoming increasingly evident that self-regulation has not worked.”

After oil disasters, there is outrage, then delay

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After the Exxon Valdez catastrophe in 1989, when oil gushed from a ship ripped open on an Alaskan reef, Congress demanded that all oil tankers have double hulls.

You would think the change would have been almost automatic after such a disaster. But the oil industry was so powerful that Congress gave it until 2015 “” 25 years “” to comply. Even now, single-hulled oil tankers like the Exxon Valdez, which now operates as an ore carrier in Asia, can ply U.S. waters.

That was just one example of how the industry’s influence has slowed or stopped regulations that might have cut into profits.

The St. Petersburg Times is publishing a damning piece Sunday on Big Oil’s success in lobbying for voluntary, “trust us,” self-regulation.  It’s the same point John Podesta and I made earlier this week in our Politico op-ed (see “Limited government can, and often does, lead to unlimited pollution and unlimited disasters“) — but they have a lot more detail.

The whole piece, “After oil disasters, there is outrage, then delay,” deserves to be widely read:

Read more

Economy

Yesterday’s 2:45 Crash Boosts The Case For A Financial Transactions Tax

AP091021033310Yesterday, at about 2:45 p.m., the stock market abruptly fell by more than 900 points, the largest intraday plunge on record. The fall lasted only 16 minutes, with the Dow closing down by about 350 points, but as the New York Times put it, the quick plunge “left Wall Street experts and ordinary investors alike struggling to come to grips with what had happened — and fearful of where the markets might go from here.”

The reason for the fall, and quick rebound, is still being parsed, but it seems to be some combination of serious jitters over the situation in Greece, as well as the unfortunate simultaneous firing of computers programmed to sell stock in response to events and market levels. “We have a market that responds in milliseconds, but the humans monitoring respond in minutes, and unfortunately billions of dollars of damage can occur in the meantime,” said James Angel, a professor of finance at Georgetown University.

The computerization of stock trading has significantly increased the flow of stock trading, but by leaving so much up to pre-set formulas, the sort of volatility that occurred yesterday can snowball out of control. But as Reuters’ Felix Salmon explained, “a simple way to deal with nearly all of these problems, at a single stroke, would be to implement a tiny tax on financial transactions”:

Historically, people have complained that such a tax harms liquidity, which is true. But the fact is that it harms the bad kind of liquidity — the liquidity which dries up to zero just when you need it most. Liquidity, if it’s spread across multiple electronic exchanges and can disappear in a microsecond, does very little actual good, and in fact does harm during tail events like this. Let’s tax it, and raise some money for the public fisc at the same time as slowing down markets and making them think before doing a trade.

Mother Jones’ Kevin Drum added, “our financial system really needs a little bit of sand in the gears to bring it back down to human speeds. [A transactions tax] would be a good way to do it, and would probably have other benefits too (quite aside from the money it raises). Count me as a fan.” You can count me as a fan too.

Capitol Hill has had an on-again, off-again relationship with the financial transactions tax recently, while the Obama administration has been staunchly opposed. But such a tax would serve a plethora of sound economic causes. It will help temper trading for trading’s sake and excessive speculation, particularly in the form of high-frequency trading, which only major Wall Street players have the infrastructure to engage in and which will become far more expensive. And it could be a serious revenue raiser in an era of unsustainable deficits, as even a tiny transactions tax has the potential to raise $150 billion annually.

As Center for Economic and Policy Research Director Dean Baker wrote, “if a financial transactions tax reduces the volume of trading, and therefore the resources used by [the financial] sector, without harming the sector’s ability to allocate capital, then it will be making the sector more efficient and freeing up resources for more productive uses.” Baker estimates that a transactions tax will free up $60 billion a year in capital for productive uses.

Politics

Pence and Boehner ignore Cantor’s claim that ‘job growth is always a good thing, period.’

BoehnerCantorPenceEarlier today, the Bureau of Labor Statistics announced that the U.S. economy added a better than expected 290,000 jobs last month while also revising the jobs number for both February and March upwards. President Obama called the report “very encouraging news,” noting that it “is the largest monthly increase in four years.” The jobs number was so positive that even House Minority Whip Eric Cantor (R-VA) had to admit in a statement that it was undeniably good news:

An employment report that shows job growth is always a good thing, period. What concerns me, however, is whether we are creating long-term, sustainable jobs that will help America reclaim its place as the world’s sole economic superpower. The agenda being pursued by Democrats in Washington—fueled by a spend-now, pay-later governing philosophy—is a barrier to the kind of job growth that America so desperately needs.

But Cantor’s colleagues in the House GOP leadership don’t seem to agree with him. House Republican Conference Chairman Mike Pence (R-IN) released a statement declaring that “these are difficult times for America’s families and today’s unemployment report delivers even more bad news.” Though House Minority Leader John Boehner (R-OH) acknowledged in his statement that “positive job growth is always welcome news,” his office called the jobs report “disappointing news” because the unemployment rate ticked up to 9.9 percent. White House Council of Economic Advisers Chair Christina Romer explained that the increased rate “was driven largely by a surge in the labor force” and “such a rise in the labor force often occurs in recoveries as workers who had dropped out of the labor force are drawn back in by improved employment opportunities.”

Justice

Traditional Values Coalition Asks Newly Minted ‘Tenth Amendment Task Force’ To Oppose ENDA

Earlier this week, a handful of conservative Republican lawmakers formed the Tenth Amendment Task Force to “uphold the principle that the will of the people is best served at the state and local levels, and that the federal government should not interfere in matters that are fully within the purview of the states.” While the group is most concerned about preserving Arizona’s immigration law and repealing the federal mandates in the health care law, its founders claim that it “can encompass many things.” “The task force is not issue-specific. … It’s about conserving the Constitution,” said Republican Study Committee Chairman Tom Price (GA) and co-founder of the task force.

Embracing the group’s broad mandate, conservative activists are now calling on the “task force” to oppose the Employer Non-Discrimination Act (ENDA), a bill now in front of the House Education and Labor Committee which prohibits public and private employers from using an individual’s sexual orientation or gender identity “as the basis for employment decisions, such as hiring, firing, promotion or compensation.” In a new press release touting the task force, the Traditional Values Coalition cites ENDA as “one example of a violation of state sovereignty is the benign-sounding Employment Non-Discrimination Act (ENDA), which will overturn the laws of 38 states by forcing them to make ‘gender identity’ a protected status“:

If passed, all businesses with more than 15 employees and state and local governments, including schools, will lose all authority to determine whether they want to hire or continue to employ someone who undergoes a sex change operation, for instance. [...]

Ultimately states, empowered by the 10th Amendment to make laws regarding hiring practices within their borders, will be stripped of their authority to decide for themselves whether they think the owner of Christian radio station, for example, should be forced to hire someone whose actions and lifestyle run contrary to his or her beliefs. We are grateful to the Tenth Amendment Task Force for working to restore the proper constitutional balance of power between the federal government and the states.”

Whether or not the task force will incorporate ENDA into its platform — the group did not mention the legislation at yesterday’s inauguary press conference — Republicans will undoubtedly attempt to defeat the legislation on 10th amendment grounds. Constitutionally, however, there is absolutely no difference between ENDA and the Civil Rights Act of 1964. As one legal expert told me, “just substitute the word ‘black” for the word ‘gay’ or ‘transgendered.’ Since the ban on race discrimination is unquestionably constitutional, so would be a ban on discrimination against the GLBT community.”

“There is no plausible theory of the Constitution that would strike down ENDA that wouldn’t also strike down the ban on race discrimination,” he said, suggesting that when Republicans go down this road, we should very well ask them if they believe it’s constitutional for businesses to refuse employment to black people.

Yglesias

Yedioth Aronoth Unearths Richard Goldstone’s Past

The Israeli newspaper Yedioth Aronoth has done some digging into Richard Goldstone’s past as a judge in apartheid-era South Africa and found him in some bad-looking situations as an enforcer of the country’s then-extant immoral laws. Given that an awful lot of people were in morally compromising situations at that point, and that the leadership of the African National Congress has always seemed to regard Goldstone as a credible jurist I’m inclined to give him a pass. But I see that defenders of the rights of black South Africans as Jonathan Chait and Jeffrey Goldberg are inclined to take a darker view of things than am I or Nelson Mandela.

At some point, though, critics of Goldstone’s work on the Gaza War are going to have to face the fact that whether or not they like what he’s said on this subject it’s just not the case that Israel’s been the victim of a frameup by white supremacists. For example, I take it that nobody is going to question the anti-apartheid credentials of Desmond Tutu and I don’t think Chait is going to endorse this or this or much anything else he’s had to say on the subject.

I posit that people who don’t like the Goldstone Report ought to actually think harder about international humanitarian law. The American right has a longstanding complaint on this score that international humanitarian law’s even-handed nature constitutes de facto unfair treatment of “the good guys.” Their point of view is that, in essence, you ought to look at a conflict, identify who the bad guys is (the Taliban rather than the US, Hamas rather than Israel), and focus your ire on the bad guy instead of nitpicking at the good guy’s conduct. Hawkish Arabs also join in this critique, though of course in their view it’s Israel who’s in the “bad guy” role. Personally, I don’t find this critique persuasive and I believe in international humanitarian law—just like Human Rights Watch does and Desmond Tutu does and Richard Goldstone does, which is why these organizations find themselves in the position of criticizing both Israeli and Palestinian conduct.

If you ask me, it would be much more plausible if people with liberal views on domestic policy and conservative ones on foreign policy would just join in the overall conservative critique. Instead, a lot of these people have tried to work out a not-so-plausible alternative view in which international humanitarian law is a good thing, but Israel just so happens to continually be victimized by sundry biased and/or unsavory figures. The simple fact of the matter is that adhering to international humanitarian law makes it very difficult to wage war, which I think is a good thing but many people disagree with that. This is an important debate, but it actually has nothing to do with anti-Israel bias or Goldstone’s alleged status as an amoral comformist.

Climate Progress

Biloxi NAACP: Oil Disaster Compounds Environmental, Economic Injustice

The Wonk Room is blogging, photographing, and tweeting live from the Gulf Coast. See previous dispatches from Louisiana, Mississippi, and Alabama.

Biloxi beach
Biloxi beach

This week, the Wonk Room has traveled the Gulf Coast from New Orleans to Pensacola, learning how the people of the region are preparing for the oil disaster growing off their shores. Over two weeks have passed since BP’s “safe” Deepwater Horizon exploratory rig exploded 40 miles off the Louisiana coast, killing 11 workers and unleashing an unstaunched undersea torrent of oil. Scientists shudder to think of the potential ecological catastrophe, and previously pro-drilling officials are scrambling to respond to the disaster.

Meanwhile, the residents of the coast express a mixture of resignation and determination. The people are tied together by the effort to rebuild from Hurricane Katrina, whose devastation is still evident all along the coast. Once-thriving seaside resorts are quiet, backwater communities decimated, and the joyous spirit of New Orleans still has a somber current, five years after the global-warming-fueled storm scoured the Gulf Coast.

The Biloxi NAACP has its headquarters on Main Street, next to a Loaves and Fishes soup kitchen. Biloxi NAACP President James Crowell discussed his city and the threat of the BP oil disaster with the Wonk Room in an exclusive interview on Wednesday. He described how the oil’s destruction of the sea puts the culture of the city — from the fish called “Biloxi bacon” by locals to the shrimp boils at every family gathering — at risk. Crowell also discussed the health, economic, and environmental dangers of this catastrophe, which will hit the most vulnerable residents the hardest:

A lot of people have health problems now, from Katrina. We’re likely to see more health problems with the oil coming in to the waters of Biloxi. There’s still people suffering from mental cases of anguish because of that Katrina. This just doubles that, something else for them to worry about.

Watch the interview:

Biloxi, MS, is a city of sharp contrasts, from mega-casinos on its white beaches to the endemic poverty of Main Street a few blocks away. With the Keesler Air Force Base, casinos, and the port and fishing industries providing an economic engine, Biloxi has some of the best elementary schools in the state and a highly-trained blue-collar workforce. But as the seas rise and storms strengthen, the peninsular city is on the front lines of global warming — it has lost 12 percent of its population since Katrina, and home insurance rates have become ruinously expensive. Biloxi also suffers the fate of being in a state run by Gov. Haley Barbour (R), a corrupt oil-industry lobbyist who fights on the side of pollution and tried to reject the federal stimulus.

Politics

Despite conservatives’ claims, 70 percent of Arizona’s Latinos oppose new anti-immigrant law.

Over the past few weeks, right-wing proponents of Arizona’s draconian immigration law inexplicably claimed that the majority of Latinos in Arizona support the new anti-immigrant law. Some examples:

Marco Rubio: Polling has shown that Americans of Hispanic descent in Arizona support this bill just as strongly as the general population does.

J.D. Hayworth: Interestingly, a majority of Hispanics agree that this law should be enforced here in Arizona.

Bill O’Reilly: I’m not buying the fact that Hispanic-Americans en masse are against the law.

Watch a compilation of their remarks:

This morning, the nation’s largest Spanish-language newspaper , La Opinion, reported that 70 percent of Arizona Latinos “strongly oppose” SB-1070 and 11 percent “somewhat oppose” it. The study, conducted by Arizona State University, showed that only 12 percent of Arizona’s Latinos strongly support the law. Opposition to the law also isn’t limited to recent Latino immigrants who are potentially unable to vote. Approximately 82-67 percent of second, third, and fourth generation Latinos oppose SB-1070:

nclrpolling

More at the Wonk Room.

Yglesias

Libertarian Opponents of Fed Audit Compromise Want to “End the Fed”

File-Ron_Paul,_official_Congressional_photo_portrait,_2007 1

Here’s a smart take on the “Audit the Fed” compromise from FDL’s David Dayen. He notes that Dean Baker thinks it’s a pretty good deal, and that the one-time audit though unfortunately limited manages to achieve the core purpose of auditing the Fed and to do so in a more open and transparent way than the House version of the legislation. He also posts an effective rebuttal to the idea of citing Ron Paul as an authority on the question of whether or not the deal constitutes a sellout:

Now I know Ron Paul and some libertarians are angered by this deal. But understand that Ron Paul doesn’t want an audit of the Federal Reserve. He wants to end the Federal Reserve. The best-selling book “End the Fed” that he wrote tipped me off to this. He wants to go back to hard-money policies and a return to the gold standard. Now, you can argue that this would end the cartel of central bankers scheming with their monetary policy, or that it would turn US monetary policy into the inflation-uber-alles laissez-faire mess we’re seeing in Europe that is threatening a global depression. The consequences for Paul’s favored end-state would be catastrophic if implemented in real time. This Fed is failing in different ways – and their actions should draw more scrutiny – but eliminating it would return us to the Stone Age.

Right on. Trying to forge left-right populist alliances has some promise, but also some peril. It’s important to keep your eyes open about what’s going on and recognize that you may work together for a while only to find that ultimately your interests diverge. For someone like Paul who’s just trying to build as much anti-Fed sentiment as possible, there’s no reason to ever say yes to a deal—what he wants is for the Fed to stay secretive and illegitimate-seeming.

Health

Are The Tea Party Inspired Campaigns To Nullify Health Reform Running Out Of Steam?

Politico’s Sarah Kliff points out that conservative efforts to repeal health care reform through lawsuit or state referendum — you can see who’s doing what here — are running into roadblocks, as voters are quickly turning against the idea. “By a slight majority, likely voters tend to oppose the health care reform law. But they also tend to oppose the repeal lawsuits as a ‘bad idea’ that would, for a sizeable portion of voters, make them ‘less likely’ to support a given candidate. In short, voters simultaneously don’t want to health care reform but don’t want to challenge it either,” Kliff notes:

The findings are particularly pertinent in Florida, where the Republican candidate for governor, state attorney general Bill McCollum, has been a leader in repeal movement. McCollum lead a coalition of 12 states in filing health care reform repeal lawsuits the day after the bill passed in the House.

The Quinnipiac poll found that the majority of Florida voters (54 percent) say it’s a “bad idea” for McCollum to file a lawsuit challenging health care reform; 38 percent say it makes them less likely to support his gubernatorial bid. Among independents the lawsuit is particularly disliked: 41 percent oppose the lawsuit challenge, while 27 percent support it.

Florida voters generally disapprove of health care reform, by about 48 to 44 percent but trying to stop it in court “is probably not going to help McCollum at this point,” says Brown.

Indeed earlier this week, Bryant Furlow reported that residents in New Mexico are actually discouraging their attorney general from joining the constitutional lawsuit challenging reform. “So far there are more than 750 comments,” AG Spokesman Phil Sisneros said. “Early on, most were clearly for joining the other states’ lawsuit but in the last few days many are urging the AG not to join.” Meanwhile, the efforts of states to pass legislation nullification the law may also be waning. As the Progressive States Network details, of the 40 something states that have introduced nullification legislation, 22 have failed to pass their bills and only 3 have succeeded. Look:

So not surprisingly, taking stuff away from people isn’t very popular. But the failure of these frivolous measures doesn’t mean that Republicans won’t keep on trying or that the public will embrace health care reform. The success of the law will likely depend on the effectiveness of implementation and the very fact that states are resisting the reform and using its unpopularity as a campaign wedge issue, suggests that the road to 2014 and beyond will be a bumpy one.

Americans are still not convinced that the health care law will lower costs — Gallup just found that individuals are no less concerned about paying the costs of a serious illness or accident, or normal healthcare costs, than they were last year — and state and federal regulators will have to work very hard to prove them wrong.

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