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Economy

At Long Last, Fox News Admits The Stimulus Helped Everyday Americans

Few outlets have done more than Fox News to perpetuate the bizarre claim that the American Recovery and Reinvestment Act — popularly known as the stimulus — failed to help the economy or struggling American families. But this afternoon, both the network and anchor Trace Gallagher inadvertently wandered off the anti-stimulus script.

During a segment ostensibly aimed at debunking a video released by the California Teachers Union, which criticized the nation’s wealthy citizens by claiming they sucked up the majority of the assistance the government passed in response to the recession, Gallagher and the Fox News art team unloaded a barrage of ways the stimulus brought aid to lower and middle-class Americans at a critical time:

GALLAGHER: Of course, they failed to point out that of the $787 billion stimulus, more than $105 billion went toward education, $20 billion toward food stamps, $39 billion plus went to extending unemployment insurance benefits, and $25 billion went to extending health benefits for the unemployed. In fact that lion’s share of the stimulus went to those in lower and middle-class families.

Watch it:

The current economic consensus as expressed by the Congressional Budget Office holds that these sorts of programs aimed at assisting Americans lower down the economic ladder — especially food stamps and unemployment benefits — produce more job growth per dollar than any other form of government spending or tax cuts. There’s plenty of evidence that the stimulus gave a pronounced boost to the economy, helping to put a floor under the economic recession. The bulk of the studies and economic models done on the topic have come to the same conclusion.

Justice

Santorum: U.S. Needs Immigrants To Grow Its Population

Another Republican is coming around on supporting an immigration reform policy that is less hostile toward immigrants and Latino voters. Former presidential candidate Rick Santorum told Politico it is “wrong” for the U.S. to deport so many people and that the U.S. needs immigrants to continue to the nation’s population growth:

I think the fact that we send some of those people back and don’t give them the opportunity to participate here is wrong,” Santorum told POLITICO. “I think we need to look at a simple fact: we are not having enough children to replace ourselves. Our country is not growing in population simply by the people that are here.”

He continued: “If it wasn’t for immigration, our country would be declining in population. It’s very hard to have economic growth and a forward looking country that is declining in population.” [...]

But what should lawmakers do? “You can’t be hostile on the issue of immigration, which I am not. You have to understand the values of immigrants who come to this country, which I do from my own personal experience. And then you need to talk about issues that create opportunities for those like my grandfather and my father who went from laborer to someone working in office to someone with a higher degree of education and moving on up,” he said.

According to Census data, Hispanics accounted for 50 percent of the U.S.’s population growth in the last decade. And the birth rate for foreign-born women in the U.S. is higher than for American women even as the nation’s birth rate is dropping.

This is a major shift from Santorum’s ideas about immigration policy during the 2012 GOP presidential primary. While the Republican candidates were falling over each other to be seen as the most anti-immigrant candidate, Santorum said mass deportation isn’t so bad because “we’re not sending them to any kind of difficult country.” And he suggested that the solution solution to America’s immigration problem is more broken families because families should be broken up when the law is broken, including illegal immigration.

Along with Santorum’s softening immigration stance, former President George W. Bush said in a speech Tuesday that political leaders need to “keep in mind the contributions of immigrants.” And after the November election in which President Obama overwhelmingly won the support of Latino voters, top Republicans suddenly backed immigration reform. Congress is expected to work on a comprehensive immigration reform plan next year.

Security

GOP Science Committee Member Unaware How Science Spreads To Other Countries

Rep. Paul Broun (R-GA)

Rep. Paul Broun (R-GA), already known as a doubter of the Big Bang theory, sits high on the list of Congressional Republicans on the House Committee on Space, Science, and Technology who have no idea how science works. As Chairman of the Subcommittee on Investigations and Oversight, Broun emphasized that point on Wednesday when he used his role to hold hearings demonstrating his unfamiliarity with how science spreads.

The hearing, titled “The Impact of International Technology Transfer on American Research and Development,” focused in particular on the transfer of technology to China by energy companies that operate there, many of whom have received tax credits or grant funding to research new sources of power. In his opening statement, Broun made sure his opinion on the Obama administration’s desire to fund alternate energy research was known:

BROUN: Time-and-time-again, we have seen U.S. R&D investments, particularly in sectors that received favorable treatment from the current Administration like wind, solar, and batteries, simply be sent overseas. It’s a dirty secret that nobody wants to talk about – not the government agencies that fund the R&D, not the companies that receive the R&D, not the associations that represent the companies, and certainly not the foreign countries that benefit from our R&D investments. Investments, I should add, that ultimately came from money we borrowed from China in the first place.

Green energy companies have been targeted in particular by the conservatives since they first became benefactors of the stimulus spending bill of 2009. During the presidential campaign, Republican candidate Mitt Romney falsely claimed during a debate that over half of those companies who received federal funding went bankrupt, which was repeated by the right-wing for weeks after.

What Broun fails to address is that the transfer of technology is nothing new, particularly for those industries that aren’t prioritized as being critical to national security. In the case of the latter, laws currently exist to prevent or strictly control the spread of U.S. propitiatory technology to companies overseas. It’s laws like these that led to the break up of a Russian smuggling ring earlier this year that was laundering parts that could be used in the construction and targeting of missiles.

The spread of science in general is even more notorious for ignoring borders, regardless of the funding source. Innovations that began within the United States and based on federal funding, such as the Internet, radar, and GPS, have been utilized for the profit of foreign companies for years without hurting the United States’ overall ability to develop newer and better technologies. Broun seems instead to be suggesting clamping down on federal funding for any science that could then be proliferated to the profit of a foreign company.

In doing so, he is failing to provide a legitimate answer to a legitimate concern. In testimony from Dr. Robert D. Atkinson, President of the Information Technology & Innovation Foundation, the members of Congress were told that many states do require the transfer of technology to foreign-owned companies in exchange for licenses to construct or operate factories within their borders. These agreements are often to the detriment of the companies in question and can hinder competitiveness abroad. Rather than focusing on the stage of research in which funding is procured, the House would be better served determining ways to ensure a level-playing field in international trade.

Health

Justice Department Nabs Record $3 Billion From Health Care Fraud Settlements

According to Modern Healthcare, the Department of Justice took in $4.9 billion in collections and settlements through the False Claims Act in fiscal year 2012 — an all-time high, largely bolstered by over $3 billion in collections from health care firms.

The False Claims Act encourages whistleblowers to report fraudulent activities undertaken by private actors against the U.S. government. This past fiscal year, the Justice Department received its highest-ever haul from health care firms engaging in Medicare fraud and pharmaceutical companies promoting drugs for off-label use not authorized by the FDA:

Top among the healthcare settlements in 2012 was GSK’s agreement to pay $1.5 billion in civil remedies to resolve charges, without admitting liability, in allegations that it promoted Paxil, Wellbutrin, Advair, Lamictal and Zofran for off-label uses, as well as making false statements about the safety of Avandia and paying kickbacks to doctors to prescribe Imitrex, Lotronex, Flovent and Valtrex.

GSK’s civil payments were part of a $3 billion “global” settlement with federal and state governments that also included criminal fines and pleas and an unusual corporate integrity agreement that changed how the company compensates sales staff and executives.

Also in 2012, the Justice Department reported collecting $441 million to resolve allegations that Merck illegally marketed the painkiller Vioxx, which was pulled from the market in 2004. That settlement, which came without an admission of wrong-doing, was part of a $950 million resolution that involved criminal and civil fines and settlements.

Fraud in government health care programs has been a consistent target of the Obama Administration in an effort to protect consumers and lower wasteful health spending. Doctors regularly overbill Medicare through shoddy, fraudulent procedures such as “self-referring” their patients and “upcoding” the complexity of the services they provide patients in order to reap undeserved profits.

But the biggest settlements from the past fiscal year’s False Claims Act collections stem from pharmaceutical companies engaging in unlawful and misleading drug promotions — a practice that was upheld by a federal appellate court on Monday and may soon head to the Supreme Court.

Economy

The Truth About An Important Part Of President Obama’s Tax Plan

Our guest blogger is Seth Hanlon, Director of Fiscal Reform at the Center for American Progress Action Fund.

In reporting about the tax reform plan released by the Center for American Progress yesterday, several news outlets mischaracterized an aspect of President Obama’s (not identical) tax plan. They reported that the President’s plan would put in place a 39.6 percent top income tax rate starting at $250,000 of income for couples and $200,000 for singles. But that’s not the case.

In fact, under President Obama’s plan, the 39.6 percent top rate would begin at $398,350 of taxable income next year.* That’s the same income level where the current top rate of 35 percent begins, adjusted for inflation. In fact, it’s the same income level where the 39.6 percent bracket began during the 1990s, adjusted for inflation.

The confusion stems from the fact that the President’s plan is designed to raise the top two tax rates without raising taxes on any married couples with adjusted gross income (AGI) of $250,000 or below or singles with AGI of $200,000 or below. But income above those thresholds** and below $398,350 would be in the second-highest bracket under President Obama’s plan, not the highest bracket. The tax rate on that income would be 36 percent, up from the current 33 percent.

Under President Obama’s plan, the rates on all income below the $250,000/$200,000 thresholds (covering roughly 98 percent of taxpayers) stay the same as they are now.

CAP’s plan is distinct from what President Obama has proposed in many ways but our proposed top rate (39.6 percent) and the income level where that rate begins to apply is exactly the same. As we indicated in the description of our plan, that level would be at about $422,000 in 2017, given estimates of future inflation. (Our plan showed proposed tax brackets for this later year because we assumed it wouldn’t go into effect in 2013.)

Restoring the top tax bracket that existed during the 1990s is, of course, only one aspect of CAP’s plan for a progressive, revenue-enhancing overhaul of the tax code. You can read about the other reforms we propose here.

Read more

LGBT

Christian College Chancellor Threatens To Sue Gay Student Blog, Then Backs Off

Like all Christian universities, Patrick Henry College has its share of LGBT students — invisible as they may be, by necessity — some of whom write a blog called “queerphc.” Several current students and alumni contribute to it using pseudonyms because the campus prohibits “the practice of homosexual conduct” or any advocacy on its behalf by students. Over the weekend, PHC Chancellor Michael Farris took to Queer at Patrick Henry College’s Facebook page to threaten the group with a lawsuit (and outing) if they do not stop using the school’s name:

This page is in violation of our copyright of the name Patrick Henry College. You are hereby notified that you must remove this page at once. On Monday, we will began [sic] the legal steps to seek removal from Facebook and from the courts if necessary. In the process of this matter we can seek discovery from Facebook to learn your identity and seek damages from you as permitted by law. The best thing for all concerned is for you to simply remove this page.

Find another way to communicate your message without using the term “Patrick Henry College” in any manner.

Queerphc was unfazed, recognizing their mission to support other LGBT students at PHC:

There’s not much to add, except that our message is intrinsically tied to the name Patrick Henry College. We are students of Patrick Henry College. We share about our experiences at Patrick Henry College. We reach out to other students at Patrick Henry College. The demand that we stop using the school’s name is really a thinly disguised demand that we shut up.

Contribute “Kate Kane” told New York Magazine that the threat was “incredibly disappointing” and constituted an “attempt to bully and censor us through the misapplication of copyright and trademark laws.” By Monday afternoon, Farris had realized his mistake and posted this brief follow-up to his original comment on the queerphc Facebook page:

After further consultation, I withdraw my note from yesterday. While we believe in the inappropriate nature of the use of our trademarked name, we believe that litigation is not appropriate.

Patrick Henry College is not the first Christian university to threaten students and alumni with legal action over support for LGBT issues. In August, Franciscan University similarly threatened a group of alumni who had exposed a class description that taught homosexuality as a “deviant behavior” alongside murder, rape, prostitution, mental illness, and drug use. One prominent LGBT alumni group, One Wheaton, has been a particularly visible model for efforts to support students at unwelcoming schools.

Security

REPORT: Foreign Companies Tried To Sell Surveillance Tech To Iran

Huawei, a Chinese technology company, reportedly pitched sales of surveillance equipment to Iranian telecommunications companies

A Reuters report published today sheds further light on efforts by foreign corporations to profit from Iran’s surveillance state by selling technology designed to increase the Iranian government’s ability to digitally eavesdrop on its citizens:

Documents seen by Reuters show that a partner of China’s Huawei Technologies Co Ltd offered to sell a Huawei-developed “Lawful Interception Solution” to MobinNet, Iran’s first nationwide wireless broadband provider, just as MobinNet was preparing to launch in 2010.

The system’s capabilities included “supporting the special requirements from security agencies to monitor in real time the communication traffic between subscribers,” according to a proposal by Huawei’s Chinese partner seen by Reuters.

Huawei denies selling the surveillance system to MobinNet, but Reuters’ source says they “acquired” a Huawei system before launching. The report comes shortly after the International Telecommunications Union’s Telecommunications Standardization Sector (ITU-T) quietly approved new standards for Deep Packet Inspection (DPI) without guidelines for responsible use. DPI is the same the technology promoted by Huawei and another Chinese company, ZTE, for use in Iran’s snooping. More than a dozen U.S. lawmakers urged Treasury Secretary Timothy Geithner to investigate ZTE sales of surveillance equipment and U.S. technology to Iran in July of this year.

Huawei also provided the technological infrastructure of the closed intranet system currently being developed by Iran. As Chinese companies, neither Huawei or ZTE are banned from doing business with Iran under U.S. sanctions — nor did U.S. sanctions explicitly ban sales of surveillance technology to Iran until earlier this year.

Reuters also reports Iran’s second largest mobile phone operator MTN Irancell was required by their licensing agreement to allow Iran’s security agency to “record and monitor subscribers’ communications, including voice, data, fax, text messaging and voicemail.” MTN Irancell is 49 percent owned by Africa’s largest telecom carrier MTN Group and met the terms of the agreement by using technology purchased by Nokia’s German unit from Utimaco Safeware AG.

Justice

Arizona Court: Federal Law Does Not Invalidate State Medical Marijuana Scheme

As public conversation escalates about how the federal government will respond to new state laws legalizing and regulating marijuana, an Arizona court rejected an argument Monday that federal law invalidates the state’s medical marijuana scheme. Judge Michael D. Gordon rebuffed Maricopa County’s attempt to skirt a marijuana dispensary’s zoning request by arguing that the two-year-old Arizona Medical Marijuana Act is preempted by the federal Controlled Substances Act:

Clearly, the mere State authorization of a very limited amount of federally proscribed conduct, under a tight regulatory scheme, provides no meaningful obstacle to federal enforcement. No one can argue that the federal government’s ability to enforce the CSA is impaired to the slightest degree. Indeed, the United States Supreme Court has been unequivocal on this point.

Instead of frustrating the CSA’s purpose, it is sensible to argue that the AMMA furthers the CSA’s objective in combating drug abuse and the illegitimate trafficking of controlled substances. The Arizona statute requires a physician to review a patient’s medical circumstances prior to authorization of its use. The statute also provides the ADHS with full regulatory authority. The ADHS, in turn, has exercised that authority with appropriate care to ensure that licensed dispensaries operate only within the confines of the AMMA. The detailed regulations ensure the marijuana is used for medical purposes only.

This decision not only affirms the sound legal footing of the medical marijuana laws now in 18 states; some of its reasoning could also support the two new state laws that legalize and regulate recreational marijuana. As with Arizona’s medical marijuana law, the stated purpose by proponents of the Washington and Colorado laws is to further the public health and safety goals of the CSA by regulating the marijuana market and funneling legitimate tax revenue into research and public education.

Federal response to medical marijuana laws has fluctuated since President Obama took office – while the Department of Justice initially indicated that it would not prioritize federal prosecution of medical marijuana dispensaries in states where they are legal, it later appeared to scale back that guarantee to apply to only individuals and not dispensaries. Officials have continued to make conflicting statements about the scope of federal crackdowns, while continuing to target some state law-abiding dispensaries.

Federal officials have not yet indicated whether they will take a similar approach to the Washington and Colorado laws, nor whether they will launch a similar preemption challenge, saying only that their enforcement of the Controlled Substances Act “remains unchanged.” Meanwhile, members of Congress have implored federal officials not to target those abiding by state law, and some have proposed a bill to exempt states with marijuana laws from the CSA.

The challenge to the Arizona law came after an applicant seeking to open what would be the state’s first licensed dispensary alleged that the county refused to provide necessary zoning documentation. The county responded in part by arguing that portions of the medical marijuana law are preempted by federal law.

Economy

Wolf Blitzer Stumps Top House Republican By Asking For Spending Cut Specifics

Earlier this week, House Speaker John Boehner (R-OH) released a vague counter offer to President Obama’s plan to avert the so-called fiscal cliff, offering $800 billion in revenue by closing unspecified loopholes and deductions and $1.4 trillion in spending cuts. Republicans have refused to provide details and have pressed Democrats to detail which cuts they would accept.

On Wednesday, during an appearance on CNN’s Situation Room, Rep. Cathy McMorris Rodgers (R-WA) became speechless when asked to list the spending reductions Congress should adopt, as host Wolf Blitzer pressed the Chairman of the House Republican Conference for just one example. Fellow guest Rep. Xavier Becerra (D-CA) just threw his hands up in frustration and detailed the $1 trillion plus in cuts Democrats have already supported:

BLITZER: So, what’s the one thing you want Xavier Becerra to agree to, to avoid the fiscal cliff?

McMORRIS RODGERS: We need to have the spending cuts.

BLITZER: What? Give me an example?

McMORRIS RODGERS: Well, it is, it’s, looking at the spending, looking at entitlement reform, looking at the growth in government. And you know what the President put on the table, the President is moving in the wrong direction. He proposed higher taxes than he ever said during the campaign, more stimulus, more spending, that’s moving us in the wrong direction.

Watch it:

Republicans have been short on examples, though they have repeatedly requested “very painful cuts” in programs like Medicare, Medicaid and Social Security.

Alyssa

TV’s Violent Rube Goldberg Machines And Anti-Heroes, Cont.

After I wrote yesterday about feeling overloaded on both violence and baroque plot mechanisms that ratchet up the intensity of shows, Linda Holmes at NPR wrote a wonderful piece about what we lose about focusing on violent death as the only possible stake for dramatic storytelling:

But what is concerning is that this revolution has been deep but narrow; it’s like we have an army of dazzlingly fluent poets who all write in one language. That doesn’t, of course, make all the poetry the same, any more than all English-language poetry is the same. These shows are varied in many ways: The Wire is not the same show as The Walking Dead just because people get shot and otherwise brutalized, and American Horror Story and Boardwalk Empire are hardly identical twins. But they share elements, one of which is that the stakes involve — not solely but largely — avoiding being violently killed. And for that reason, they ask the viewer to want to watch people being violently killed now and then, and sometimes now and then and then and then, because otherwise the threats are false…

The “television versus film” debate is absurd and always has been; there’s no way to attain a weighted average of all of television and all of film, nobody sees all of either one, and comparing best versus best ignores everything else. But at some point, if dramatic television wants to be considered as vibrant and exciting as film can be, it needs a better mix. It needs love stories and family stories, workplace stories and friendship stories, and they can’t all be soaked in blood. Inevitably, there is a portion of the audience that is — as Alyssa pointed out — eventually exhausted by that. Not offended; exhausted.

I also took some time yesterday to talk to Maureen Ryan of Huffington Post both about Sons of Anarchy and some of the issues I raised in my piece. Sons fans may be interested in the whole diavlog. But I wanted to pull this section of it, where we talk a bit about how to work our way out of hugely complex plots that are dependent on violent stakes. We talked a bit about British series, which have developed in the opposite direction that Linda described, exploring a broad range of forms and tones but without delving deeply into a limited set of tropes and themes. And I suggested that maybe we need a halfway point between traditional procedurals, which devote very little time to long character arcs and keep their plots largely confined to single episodes, and serialized dramas, which have both very long plot and character arcs. Mad Men, after all, is fundamentally a procedural, a show that has a discrete task per episode, often one that very clearly snaps onto the previous episode’s task like a Lego in the construction of the major goal of the season, and one that leaves significant space in every episode for character development. And it’s avoided the trap of both the traditional procedural, and of violent death stakes as the only ones:

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