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NEWS FLASH

U.S. Collects Third-Lowest Tax Revenue In Developed World | Despite Republicans’ constant protestations that the U.S. has “a spending problem, not a tax problem,” the U.S. actually collects the third-lowest amount of tax revenue as a percentage of GDP in the Organization for Economic Co-operation and Development. According to the OECD’s latest data, “Mexico (18.7% in 2010) and Chile (20.9%) have the lowest tax-to-GDP ratios among OECD countries. The United States has the third lowest ratio in the OECD region at 24.8% with Korea at 25.1% and Turkey at 26.0%.” Here are 10 other statistics proving that the U.S. is actually a low-tax country.

NEWS FLASH

JP Morgan Chase Leads Wall Street In Building The Carbon Bubble | Wall Street executives like JP Morgan Chase CEO Jamie Dimon have been dubbed “banksters” for their deliberate creation of a real-estate bubble that crippled the global economy. But that collapse is dwarfed by the looming destruction of the global ecosystem by carbon pollution. A new report by BankTrack finds that the world’s top banks, while claiming to be committed to fighting global warming pollution, have pumped $230 billion into the coal industry since 2005. “Low-carbon economy” JP Morgan Chase has financed $22,250,000,000 worth of coal mining and coal-powered electricity projects since 2005.

(HT: Grist)

After Locking Out 1,300 Union Workers, Food Company CEO Compares Them To Cancerous Tumor

For the past five months, American Crystal Sugar, the largest sugar beet producer in the country, has locked out 1,300 of its unionized workers in Minnesota who had the audacity to demand a fair contract with the company. Gov. Mark Dayton (D) has implored the corporation to renew negotiations, to no avail — instead of returning to the negotiating table, Crystal Sugar has hired replacement workers.

Over the holiday season the workers “struggle to survive,” Dayton said, and “the lockout has devastated families, communities, and the economy in Northwestern Minnesota.” Desperate to get back to work but determined to stand by their principles, the workers have had prayer vigils with faith leaders in the community.

But Crystal Sugar President and CEO Dave Berg apparently has absolutely no sympathy for his workers’ plight. In fact, at a recent meeting with shareholders, he compared them to a cancerous tumor:

In a meeting of company shareholders on November 7 in Grafton, ND, Berg likened the workers to a 21-pound cancerous tumor. According to an audio recording of the meeting, Berg told the story of a sick friend who was diagnosed with cancer and had a massive tumor removed. “That’s a scary deal. He was sick for a long time,” said Berg. “We can’t let a labor contract make us sick forever and ever and ever. We have to treat the disease and that’s what we’re doing here.”

Workers have responded with disappointment and outrage. Sarah Gust, who has worked at ACSC for 40 years remarked, “The fact that Dave Berg would refer to our union, our contract as a cancerous tumor is deeply offensive to me and many of my co-workers. Some of us have had cancer or have lost loved ones to cancer. It’s a tragic, devastating disease. And that’s how Crystal Sugar management sees our union. I tell you, this just shows how much respect Dave Berg and the management have for us workers.”

Listen to the audio here.

Discussing his strategy for dealing with the union workers, Berg again used the analogy: “At some point that tumor’s got to come out. That’s what we’re doing.” Sadly, comparing unionized labor to cancer is nothing new amongst conservatives, who evidently believe workers shouldn’t be able to bargain for fair wages, benefits, and working conditions.

Another locked out worker who has been with the company for 16 years said, “Our contract represents years of struggle to protect good jobs at Crystal and build a mutually respectful relationship with management. Now, Dave Berg is throwing all of that away for greed.”

Gov. Dayton has made it clear that it’s ASC’s recalcitrance and attempt to squash labor for profit that’s preventing a solution. “It is time for American Crystal’s management to reach a fair agreement with its workers, who have contributed so much to the company’s current profitability,” he observed.

As His Poll Numbers Tank, Perry Adopts Populist Rhetoric: Calls For Jailing Bankers

2012 GOP presidential contender and Texas Gov. Rick Perry has been plummeting in the polls recently, with the latest numbers showing him at 8 percent in South Carolina and just 2 percent in Florida. In an apparent attempt to revive his campaign, Perry has decided that espousing anti-bank populism is the right approach. Perry said in a speech in New Hampshire today that the bankers who wrecked the economy should be thrown in jail and that he opposes executives at bailed out banks receiving bonuses.

However, his solution to the problem of banks’ undue influence in the economy is to simply promise “no more bailouts” and then have Congress pass a Balanced Budget Amendment to the Constitution:

Not the large banks that were overleveraged. Not the insurance company that took on too much risk. Not even executives who continued to get these huge bonuses even after the walls had crumbled down. No, the people that are paying the price are average Americans. Main Street businesses. It’s our children who stand to inherit the worst fiscal mess in the history of this country. It is wrong, it is unfair, it is unjust. We shouldn’t be awarding taxpayer funded bonuses to Wall Street executives who defrauded those very same taxpayers. We ought to be locking ‘em up.

Mr. Speaker, when I’m the President of the United States, we will clean up corruption from K Street to Wall Street so that they can not gamble with our childrens’ future again. And it starts with a simple promise. No more bailouts, whether we’re talking about bailing out bankers in America or we’re talking about bankers in Europe. No more bailouts. It continues with my pledge to end wasteful earmarks. And I won’t stop until Congress and the American people pass a Balanced Budget Amendment to the United States Constitution.

Watch it:

It’s entirely unclear how Perry thinks that a BBA — one of the worst ideas in Washington, for a whole host of reasons — would help rein in the biggest banks. Perhaps he thinks it will prevent the government from spending money in a TARP-like fashion? And for someone professing such a concern for the power of Wall Street, Perry is on record calling for the repeal of the Dodd-Frank financial reform law. “This president does not understand how to free up the small businessmen and women or, for that matter, Wall Street,” Perry has said.

This isn’t the first time that Perry has gone populist when it comes to Wall Street, saying in 2008 that the banking industry “has too often been run on greed.” But when it comes to solutions, Perry suggests a favorite GOP budget gimmick that has nothing to do with the problem at hand.

NEWS FLASH

New York Attorney General Launches Investigation Into Possible Wrongful Foreclosures On Military Members | A recent report from the Treasury Department’s Office of the Comptroller of the Currency shows that ten of the nation’s banks may have illegally foreclosed on up to 5,000 members of the U.S. military. In response, New York Attorney General Eric Schneidermann — who has been aggressively looking into the banks’ fraudulent foreclosure practices — has launched an investigation using “the Martin Act, a powerful state law that gives prosecutors broad powers to investigate fraud.”

NEWS FLASH

New Hampshire Republicans Fail To Override Veto Of Right-To-Work Bill | Republicans in New Hampshire’s state House of Representatives failed to override Gov. John Lynch’s (D) veto of HB 474, a bill that would have made New Hampshire a right-to-work state. The bill passed last spring but was vetoed by Lynch in May. “This bill would have directly interfered with the rights of businesses and their employees to freely negotiate contracts,” Lynch said in a statement. “I am pleased that a bipartisan coalition of House members put the interest of New Hampshire and voted to sustain my veto.”

Special Topic

As 2 Million Britons Go On Strike, Federal Employee Strikes Are Illegal In The U.S.

Today, the 99 Percenters across the pond are out in force, with nearly 2 million public sector employees in the United Kingdom going on strike to protest austerity policies that would slash public worker pensions and raise the retirement age. Sixty percent of schools are closed and 6,000 out of 30,000 non-urgent operations of the National Health Service have been canceled. Not since 1979 has Britain seen such an enormous strike. Watch Sky News’s report about the strike and the resulting marches:

While the British 99 Percent can utilize this large-scale public sector strike to pressure their government, this option is all but unavailable to Americans. According to United States Code: Title 5,7311, federal employees are not allowed to strike against their government. Meanwhile, the anti-labor Taft-Hartley Act makes it so that “a general strike in support of other workers is illegal.” This network of anti-labor laws has made it very difficult for 99 Percenters in Americans to utilize organized labor to fight for more rights in modern history, and is one reason why reforming labor laws is so important for American democracy.

Soda Companies Aggressively Target Black And Latino Kids, Fueling Childhood Obesity Epidemic

It’s well known that America’s obesity epidemic disproportionately affects poor and minority children because of the country’s glut of cheap, unhealthy foods. Soft drinks are such a major culprit in the childhood obesity epidemic that some local governments have tried to levy taxes on them to reduce consumption. The Obama administration announced a plan to ban candy and sweetened beverages from schools.

Now, a new study reveals that soda companies have been targeting black and Latino children in high numbers, diminishing parents’ attempts to encourage their kids to eat right:

A new report from Yale’s Rudd Center for Food Policy and Obesity has found that beverage companies are aggressively targeting black and Latino kids with ads to promote sports, fruit and energy drinks. The products that are promoted to kids of color happen to be among the least healthy of the 644 products studied by researchers at the university.

Black children and teens saw 80 percent to 90 percent more ads compared with white youth, including more than twice as many for Sprite, 5-hour Energy, and Vitamin Water.

From 2008 to 2010, Latino children saw 49 percent more ads for sugary drinks and energy drinks on Spanish-language TV. Latino preschoolers saw more Spanish-language ads for Coca-Cola Classic, Kool-Aid, 7 Up, and Sunny D than older Latino children and teens did.

Colorlines notes that the two largest soda companies, Pepsi and Coca-Cola, have repeatedly promised to market less to children, who are more susceptible to advertising: “Coca-Cola, for example, has previously stated publicly that they wouldn’t market ads in TV, radio and print programming aimed at kids under the age of 12.”

But the report found that soda companies have just shifted to using more sophisticated and insidious forms of advertising that promise kids rewards for purchasing sugary drinks. Kids are exposed to these messages “often without their parents’ awareness.”

Companies’ targeting of minority children is a social justice issue as well as an economic one. Just like mortgage companies that focused their predatory lending on minority communities, soda companies are preying on a particularly vulnerable group (poor children) who are already suffering the ill effects of their product and have the most to lose from consuming more. For instance, these children are less likely to have health insurance to cover the numerous medical problems associated with obesity.

NEWS FLASH

Driven By Public Sector Job Loss, 2011 Layoffs Pass 2010 Total | Planned layoffs dropped for the second consecutive month in November, but the number of job cuts in 2011 has already surpassed the 2010 level as federal, state, and local governments continue shedding jobs, CNN Money reports. Job cuts this year total 564,297, a 13 percent increase over the 2010 total of just under 530,000. The public sector was hit the hardest, shedding roughly 180,000 jobs in 2011. Still, according to payroll company ADP, the economy added 206,000 jobs in November, including 130,000 in the private sector.

Gingrich: It’s ‘Almost Inevitable’ That Lawmakers Will Be Forced To Put Their Investments In Blind Trusts

Earlier this month, a 60 Minutes investigation showed that House Financial Services Chairman Spencer Bachus (R-AL) made stock trades based on information he received in private briefings during the 2008 financial crisis, earning nearly $30,000. Since then, Congress has discovered a deep desire to prevent this sort of insider trading, with nearly 100 representatives signing on to the Stop Trading on Congressional Knowledge (STOCK) Act in the House and Sen. Scott Brown (R-MA) introducing companion legislation in the Senate.

2012 GOP presidential hopeful Newt Gingrich, who has previously said that insider trading laws should “absolutely” apply to information lawmakers receive in private briefings, predicted last night during an event in South Carolina that lawmakers will eventually have to place their investments in a blind trust during their terms in office:

What we will migrate to, my prediction is, that members of Congress, on winning office will have to end up putting their money in blind trusts, managed by other people with no communication, because it is so clear that they have so much power that there’s no way to build trust in an environment where they can make money out of what they’re doing. And I think that’ll be the culmination of this whole series of things, is it will create a new pattern that says if you go into Congress and you have any significant amount of resources they go into a blind trust and are managed for you by somebody who does not talk to you, doesn’t have any insider knowledge about what’s going on in Congress. It’s unfortunate, but I think that’s going to become, something like that will be almost inevitable.

Watch it:

On this particular issue, Gingrich is doing a good job seizing the populist position. However, he has made clear that he doesn’t have much more than contempt for the wider concerns of the population when it comes to fairness in financial markets. Just yesterday, he called on President Obama to “repudiate the concept of the 99 and the 1,” a direct shot at the Occupy Wall Street movement’s call for an economy that works for everybody.

Econ 101: November 30, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • Republicans yesterday said that they will join Democrats in supporting an extension of the expiring payroll tax cut, but won’t agree to higher taxes on millionaires to pay for it. [Wall Street Journal]
  • European finance minsters yesterday delayed any action on a fiscal rescue for the continent “until their bosses meet next week in Brussels.” [Associated Press]
  • Federal Reserve Vice-Chairman Janet Yellen said yesterday that “the U.S. central bank has room to ease monetary policy further, possibly by providing more information on the path of interest rates.” [Reuters]
  • The ratings agency Standard & Poor’s yesterday “reduced its credit ratings on 15 big banking companies, mostly in the Europe and the United States,” after overhauling its ratings criteria. [Reuters]
  • Opponents of the Dodd-Frank financial reform law get set to challenge it in court. [Politico]
  • The Federal Communications Commission said yesterday that “AT&T’s internal analysis and past practices contradict the company’s claims that its merger with T-Mobile would create jobs.” [Washington Post]
  • The number of students receiving subsidized school lunches “rose to 21 million last school year from 18 million in 2006-7, a 17 percent increase.” [New York Times]
  • Bank of America’s stock nears the $5 “danger zone.” [CNN Money]
  • I was on Countdown with Keith Olbermann last night, talking about this story on foreclosure fraud in the military. Watch it:

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