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Yglesias

Public Opinion and the Deficit

David Leonhardt explains the confused public:

The new Times/CBS News poll highlights the problem, by asking more specific questions about taxes and spending than many previous polls have. (See questions 33 through 45 here.) Not surprisingly, when given a straight-up choice between broad spending cuts and tax increases, Americans say they would prefer to reduce the deficit mostly through less spending. It’s not even close: 62 percent for spending cuts, 29 percent for tax increases.

A few questions later, though, our pollsters offered a different choice. Would people rather eliminate Medicare’s shortfall through reduced Medicare benefits or higher taxes?

The percentages then switch, becoming nearly a mirror image of what they had been. Some 64 percent of respondents preferred tax increases, while 24 percent chose Medicare cuts. The same is true of Social Security: 63 percent for higher taxes, 25 percent for reduced benefits.

What I think we ultimately need to see is Universal Medicare rather than Medicare for old people only. But it would be Medicare operating under a global budget and with a dedicated source of tax revenue. People won’t be happy with the rationing that results from the global budget, but they also won’t be happy with the idea of raising the tax rate, and the balance between the two will be a very reasonable thing for political parties to argue about. Personally, I’d favor focusing on catastrophic coverage and preventive services, while leaving routine care up to individuals, but reasonable people will disagree about exactly how many social resources should be devoted to health care overall. Currently, though, the public debate is distorted by widespread misunderstanding of what’s happening (Jeb Hensarling doesn’t help) and by the sharp divergence in how we treat people above and below the age of 65.

Yglesias

Troikas

Ken Auletta on Google:

Was Eric Schmidt pushed or did he jump? Both. According to close advisors, the Google C.E.O. was upset a year ago when co-founder Larry Page sided with his founding partner, Sergey Brin, to withdraw censored searches from China. Schmidt did not hide his belief that Google should stay in the world’s largest consumer marketplace. It was an indication of the nature of the relationship Schmidt had with the founders that he—as Brian Cashman of the Yankees did this week—acknowledged that the decision was made above his head. He often joked that he provided “adult supervision,” and was never shy about interrupting the founders at meetings to crystallize a point. In the eleven interviews I conducted with him for my book on Google, he freely told anecdotes about the founders, sometimes making gentle fun of them, never seeming to look over his shoulder. Yet he always made clear that they were “geniuses” and he, in effect, was their manager. After a bumpy first couple of years after he joined Google as C.E.O. in 2001, they had developed a remarkable relationship. But also a weird one. How many successful organizations have a troika making decisions?

I guess not that many, but maybe more should. After all, are there are lot of organizations out there that are more successful than Google? Is the one CEO supervised by a large and diffuse Board of Directors model really such a stunning success? There doesn’t seem to be anything obviously wrong with the troika idea other than that it’s unusual. Admittedly in ancient Rome this form of government mostly led to civil wars, but under Roman conditions just about everything seemed to lead to civil wars, right?

Justice

Justice Thomas Omitted His Tea Partying Wife’s Income From Financial Disclosure Forms

Federal judges and justices are required by law to disclose their spouse’s income — thus preventing persons who wish to influence the judge or justice from funneling money to them through their husband or wife. Yet, as the Los Angeles Times reports, Justice Clarence Thomas has not complied with this requirement for years:

Supreme Court Justice Clarence Thomas failed to report his wife’s income from a conservative think tank on financial disclosure forms for at least five years, the watchdog group Common Cause said Friday.

Between 2003 and 2007, Virginia Thomas, a longtime conservative activist, earned $686,589 from the Heritage Foundation, according to a Common Cause review of the foundation’s IRS records. Thomas failed to note the income in his Supreme Court financial disclosure forms for those years, instead checking a box labeled “none” where “spousal noninvestment income” would be disclosed. [...]

Virginia Thomas also has been active in the group Liberty Central, an organization she founded to restore the “founding principles” of limited government and individual liberty.

In his 2009 disclosure, Justice Thomas also reported spousal income as “none.” Common Cause contends that Liberty Central paid Virginia Thomas an unknown salary that year.

This revelation that Justice Thomas failed to comply with his disclosure obligations comes as he is caught up in another ethics scandal regarding his participation in fundraisers for far-right political groups. Thomas once attended a gathering of wealthy corporate activists convened by billionaire Charles Koch to raise money for right-wing political causes, and he also attended at least one fundraiser hosted by the far-right think tank that used to employ his wife.

A Supreme Court justice lending a hand to a political fundraising event would be a clear violation of the Code of Conduct for United States Judges, if it wasn’t for the fact that the nine justices have exempted themselves from much of the ethical rules governing all other federal judges. Under the Code of Conduct, “a judge should not personally participate in fund-raising activities, solicit funds for any organization, or use or permit the use of the prestige of judicial office for that purpose,” except in certain very narrow circumstances that don’t apply to the Koch and Heritage fundraisers.

Nor is Thomas the only justice engaged in ethically questionable activities. Justice Antonin Scalia also attended one of Charles Koch’s right-wing fundraising and strategy sessions, and Justice Samuel Alito is a frequent speaker at fundraisers for groups such as the Intercollegiate Studies Institute — the corporate front that funded the rise of Republican dirty trickster James O’Keefe and that used to employ anti-masturbation activist Christine O’Donnell.

Worst of all, today’s revelation that Justice Thomas has been submitting incomplete financial disclosures suggests that the conservative justices’ engagement with corporate political advocacy could be much more widespread than previously believed. If the justices are not disclosing their activities, it’s anyone’s guess what they could be hiding.

Update

Thomas has amended his disclosure forms to include his wife’s income.

Yglesias

The Era of Big Government

I agree with Jon Chait that Jim Kessler from Third Way has hit upon some good advice here about the State of the Union* address:

The President ought to make long term economic growth the theme of his State of the Union. He should declare that with the passage of health care reform, America’s 85-year quest to weave a strong safety net is now complete. From there he would describe a clear, tangible, and compelling destination for the nation – that of American excellence. It is a destination where America has the strongest, most vibrant, and most advanced economy on earth.

This isn’t precisely how I would put it, but Kessler is right about this. When Bill Clinton pronounced that “the era of big government is over” in 1995, he was clearly wrong. And since that time we’ve gotten SCHIP, Medicare started covering prescription drugs, and now we have the Affordable Care Act. So the era of big government wasn’t over in 1995 and it’s not over in 2010, but what is over is the era of big government liberalism. That’s not to say there will be no new changes to health care policy or to education policy or any of the rest of it. But there aren’t any major new fundamental commitments to be undertaken and there isn’t any more money to undertake it with.

Future public policy has to be about ways to maximize sustainable economic growth, and ways to maximize the efficiency with which services are delivered. Right now Medicare is projected to cost more money than Democrats are willing to tax, and yet Republicans are positioning themselves as defenders of the program against the ACA’s insidious cuts. The future of American politics is really about how to square this circle. How to find the revenue in viable ways, and how to streamline these services to maximize value to citizens and minimize rent-seeking. Big government isn’t over, or going away. It’s utterly victorious and yet at its limits.

Read more

Security

‘Libertarian’ Bob Barr To Be Former Haitian Dictator Duvalier’s ‘International Voice’

Last week, Jean-Claude “Baby Doc” Duvalier, the former ruler of Haiti, unexpectedly returned to the country after a 25-year exile in France. Duvalier’s return has many concerned that his presence will once again stir up the animosity and violence that existed during his 15-year dictatorship. Duvalier’s rein saw the disappearance and torture of hundreds of Haitians and brutal crackdowns on democracy and human rights advocates (it should be noted that much of this was possible thanks to the international assistance of France and the United States).

Now, with Duvalier once again seeking to become a public figure in Haiti, he is working to rebuild his public image in the eyes of both Haitians and the international community. In order to do this, he has enlisted the help of numerous U.S. attorneys, including none other than former Libertarian Party presidential candidate and Clinton impeachment champion former Rep. Bob Barr (R-GA). Barr will serve as the former dictator’s “voice to the world,” and he told CNN that he plans to bring Duvalier’s “message of hope to the world“:

A former U.S. congressman was among a group of American attorneys accompanying former Haitian dictator Jean-Claude “Baby Doc” Duvalier as he spoke in the country’s capital Friday. Former Republican Congressman Bob Barr said he is not serving as Duvalier’s attorney, but is in Port-au-Prince to consult, assist and be Duvalier’s voice to the international community. [...]

Barr “will be representing” Duvalier “in bringing his message of hope to the world,” the former Republican congressman’s website says. “I also am reminded of others who have risen from the ashes,” Barr told reporters Friday. “The city of Atlanta is the Phoenix city. The people of Haiti, likewise, will rise from the problems created by last year’s earthquake and emerge stronger and better than before. That I know is Mr. Duvalier’s deep wish and something that he knows in his heart.”

Accompanying Barr will be fellow Georgia attorneys Ed Marger and Mike Puglise, who practice law in the small rural towns of Jasper and Snelleville, GA respectively.

One has to wonder how Barr — who ran for president in 2008 to “deliver a refreshing message of liberty” — can reconcile his supposed right-libertarian beliefs with being on the payroll of a notorious autocrat who shut down elections and the free press and tortured nonviolent dissidents. (h/t Mike Elk)

Featured

lance peeples writes, “What? Lanny Davis wasn’t available?”

Yglesias

Pushing Sprawl Through Flawed Congestion Analysis

One crucial distinction in regional planning is between approaches to commuting that simply look at moving people as far as possible as fast as possible and approaches that look instead at moving people from where they are to where they’re going as fast as possible. For example, consider the Texas Transportation Institute’s new report on congestion in America which lists DC as tied for first for hours wasted in traffic, in the context of how their methodology actually works:

The TTI report narrowly looks at only one factor: how fast traffic moves. Consider two hypothetical cities. In Denseopolis, people live within 2 miles of work on average, but the roads are fairly clogged and drivers can only go about 20 miles per hour. However, it only takes an average of 6 minutes to get to work, which isn’t bad.

On the other hand, in Sprawlville, people live about 30 miles from work on average, but there are lots and lots of fast-moving freeways, so people can drive 60 mph. That means it takes 30 minutes to get to work.

Which city is more congested? By TTI’s methods, it’s Denseopolis. But it’s the people of Sprawlville who spend more time commuting, and thus have less time to be with their families and for recreation.

The point is that if you simply want people to be inside fast-moving vehicles, that will always bias policy toward sprawl. If you make each house sit on a large enough lot and build reasonable wide roads, then traffic will always move very quickly. But it will move quickly in part because everything’s so far away. Living in downtown DC where things are very close together, it’s most practical for me to commute to work via the incredibly slow method of walking. But I love only 0.8 miles from my office, so the trip only takes 10-15 minutes and by any sensible estimation it’s a very pleasant and convenient commute.

Climate Progress

Energy and global warming news for January 22: Changing Climate Means Changing Oceans

A very good NPR Science Friday interview with some leading ocean scientists.

Changing Climate Means Changing Oceans

Scientists who study the oceans say the effects of climate change are already being seen in the world’s oceans. From acidification and warming temperatures to sea-level rise and sea-ice loss, Ira Flatow and guests look at how the oceans are changing with changes in climate.

Read more

Yglesias

Olbermann

Like everyone, I’m a bit puzzled/shocked/distressed by this Keith Olbermann news. It’s not every day a TV network sacks its highest rated host. It had seemed to be the case that Olbermann’s success was leading MSNBC to walk further and further down the road of recognizing that there’s a market niche for progressive cable television programming. Are they now walking away from that?

Economy

Will Republicans Continue To Block Obama Nominee For Wanting To Help Underwater Homeowners?

underwaterOn November 15, President Obama nominated Joseph Smith, the North Carolina Commissioner of Banks, to be director of the Federal Housing Finance Agency (FHFA), which is charged with regulating Fannie Mae and Freddie Mac. Smith’s nomination was approved by the Senate Banking Committee on a 16-6 vote, but was ultimately blocked by Republicans, who took issue with the fact that Smith may be sympathetic to allowing Fannie and Freddie to aid underwater homeowners.

According to Reuters, Obama is thinking of sending Smith’s nomination back up to Capitol Hill:

U.S. President Barack Obama is leaning toward renominating Joseph Smith to oversee mortgage finance giants Fannie Mae and Freddie Mac, three sources familiar with the process told Reuters…The sources said the timing of a renomination announcement was unclear. Smith is likely to face an uphill battle again.

The Obama administration has been pushing Fannie and Freddie to write down loan principal (the total loan amount) for underwater homeowners (who owe more on their mortgage than their house is currently worth), much to the consternation of Republicans like House Financial Services Committee Chairman Spencer Bachus (R-AL). The GOP contends that Smith would allow Fannie and Freddie to participate in write downs, though he hasn’t publicly indicated such support.

The administration’s response to the housing crisis has, thus far, been underwhelming, and the economic case for loan write downs is a good one. As Tim Fernholz explained:

Many economists think that principal write-downs are key to finding some stability in the mortgage market and halting the on-going wave of foreclosures…It also makes plenty of economic sense to keep borrowers in a sustainable loan than taking a loss in default or a short sale. Postponing write-downs is a key problem for a financial sector that needs to reset, rather than pretend these losses don’t exist.

When it comes to housing policy, Republicans are currently coalescing around a plan that not only would do nothing to prevent foreclosures, but would actually undermine the housing market and potentially end the 30-year mortgage upon which so many families depend. If Obama should renominate him, will they continue to stand in the way of an FHFA director who may (or may not!) be okay with providing homeowners with some relief?

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