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McCain flubs the name of Georgian President three times.

The McCain camp has been proud to note the Senator’s close ties to the President of Georgia, Mikheil Saakashvili. Randy Scheunemann, McCain’s foreign policy aide, boasted “McCain and the Georgian leader rode jet skis together” while visiting his presidential villa on the Black Sea. McCain even nominated Saakashvili for a Nobel Peace Prize in 2005. But in a speech yesterday, McCain mispronounced his name three times. Stephen Hayes, editor of the Weekly Standard, defended McCain by saying “he knows the players even if he mispronounces the name.” Watch a compilation:

As Matt Duss at the Wonk Room has noted, McCain’s close affiliation with the Georgian President would impair his ability to be an honest broker in dealing with the conflict. And Matt Yglesias notes that McCain’s rhetorical bluster does nothing to actually help Georgia.

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Yglesias

Today

Good news as Russia appears to be about down teaching Georgia whatever lesson Russia was looking to teach. Ben Armbruster wonders where this leaves neocon predictions:

Max Boot: “The Russian attacks on Georgia, if left unchecked, could easily trigger more conflict in the future. […] Today, Georgia; tomorrow, Ukraine; the day after, Estonia?”

– AEI Fellow and McCain adviser Gary Schmitt: “It is also about resisting Russia’s openly hegemonic designs on its neighbors — including Ukraine.”

Wall Street Journal: “Unless Russians see that there are costs for their Napoleon’s expansionism, Georgia isn’t likely to be his last stop.”

Needless to say, not only are Russian tanks not rolling toward Kiev, but Russia isn’t so much as taking over Georgia. Now I doubt Russia is showing restraint out of the goodness of Vladimir Putin’s heart, but he’s also not showing restraint because the United States did anything to stop him. Rather, even in the absence of a “tough” American response, Putin has stuck to relatively moderate goals because it’s not actually true that the “lessons of Munich” are applicable to every single event in the world. Occupying Georgia would be more trouble than it’s worth, so it’s not going to happen, and Russia won’t attack Ukraine either. The past week’s events have been terrible for Georgians, but not world-historical in their significance.

American punditry is constantly full of dire worst-case scenario predictions about what will happen if the U.S. doesn’t “do something” in this or that situation. But most often these things don’t — and wouldn’t — happen anyway.

Climate Progress

The NY Times blows the solar PV story

It would seem like an easy story for the paper of discord record:

In recent months, chains including Wal-Mart Stores, Kohl’s, Safeway and Whole Foods Market have installed solar panels on roofs of their stores to generate electricity on a large scale….

In the coming months, 85 Kohl’s stores will get solar panels; 43 already have them. “We want to keep pushing as many as we possibly can,” said Ken Bonning, executive vice president for logistics at Kohl’s.

Macy’s, which has solar panels atop 18 stores, plans to install them on another 40 by the end of this year. Safeway is aiming to put panels atop 23 stores….

Wal-Mart [is considering a] program that would put panels and other renewable technologies at hundreds of stores.

All that is left for the Sunday NYT story, “Giant Retailers Look to Sun for Energy Savings,” is to explain why these bottom-line savvy companies are making such large bets on rooftop solar photovoltaics (PV), even though the power is widely thought to be expensive.

This should be incredibly easy — assuming this reporter or her editor even bothers to read their own paper. After all, just a few months ago a different NYT reporter explained it all in a story titled, “Pay for the Power, Not the Panels“:

The new financial techniques allow the solar companies to separate the capital expense of the systems they sell and the tax benefits that accrue to the buyer from the final costs of the electricity produced. In doing so, the solar companies have made it possible for more corporations and even some homeowners to kill two birds with one stone: doing good for the environment while cutting the cost of the power they consume.

[Small note to NYT: In an environmental story, maybe use a different metaphor than bird-killing.]

That’s right. Corporations are actually cutting their electricity costs by installing solar panels. But you would never know that from Sunday’s story. In fact, you’d think these companies were throwing away their money:

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Yglesias

The Unknown Future Rolls Toward Us

I’m always surprised by the popularity of things like this Freakonomics colloquium on the future of the suburbs. Rising gas prices and various other considerations have prompted this increased round of speculation on whether the suburbanization of America will reverse, but the right answer needs to take into account the fact that what policy choices we make will have a strong impact on the course of the future:

Suburbs

Higher energy costs will, especially if we ever implement carbon pricing, presumably make urban living more attractive than it currently is now. By the same token, the relative desirability of living in an inner-suburb to a far-out exurb will increase. In a totally unregulated market, that would lead central cities and inner suburbs alike to become denser, with the inner suburbs taking on more of the characteristics of urban areas (as parts of Arlington and Montgomery counties already do in the DC area) as more people pack into these increasingly desirable areas. But of course real estate and development are anything but unregulated markets. Even in Houston, which you sometimes hear talked about as a zoning-free area, there are all kinds of regulations about what kinds of structures you can put on what size parcels of land.

It’s totally plausible that we’ll respond to high energy prices by keeping our transportation spending priorities similar, while incumbent homeowners in-or-near walkable places respond to increased demand by enacting tight development restrictions in order to maintain artificial scarcity of housing stock and maximize the value of their homes. A similar overall proportion of the population would live in the suburbs, but the urban/suburban socioeconomic mix would continue shifting (“demographic inversion”) and overall quality of life will be hampered. Alternatively, we could alter our land use rules to facilitate the construction of denser areas and shift transportation spending priorities. That would slow sprawl, encourage inner suburbs to become less “suburban,” and a shift of the population base toward the cities. That would also be the more prosperity-friendly solution (not because cities are awesome, but because it’s more economically efficient to allocate resources in a manner less constrained by arbitrary regulatory barriers) and I hope it’s the solution we adopt, but whether or not we do it is totally uncertain.

But to make a long story short, we have the built environment we have because of policy. The past half century or so has been dominated by rules about maximum lot occupancy and minimum lot size, parking requirements, and floor area ratio caps that were designed to produce something like the suburbs as we know them. Insofar as we keep those rules, the future will resemble the present. Insofar as we change them, things will change.

Photo by Flickr user lindenbaum used under a Creative Commons license

Economy

Two-Thirds of Corporations Pay No Taxes, But McCain Still Wants To Lower the Corporate Tax Rate

A cornerstone of Sen. John McCain’s (R-AZ) economic plan — Jobs for America — is cutting the corporate tax rate from 35 percent to 25 percent, which McCain claims will turn America into a “low-tax business environment.” But as it turns out, even with the rate at 35 percent, most corporations are not paying taxes.

Today, the Government Accountability Office (GAO) released a report showing that between 1998 and 2005 “about two-thirds of corporations operating in the United States did not pay taxes.” Corporations have a “variety of reasons” for not paying, including “the cost of producing their goods, salary expenses and interest payments on their debt.”

McCain, meanwhile, has derided the U.S. corporate tax rate as the “second highest in the world.” While his statement is technically accurate for the purely nominal rate, U.S. tax revenue as a share of the economy is significantly lower (See graph below), and is below the Organization for Economic Cooperation and Development (OECD) average. The U.S. raises less revenue from corporations than Japan, the United Kingdom, and even Ireland, which the McCain campaign cites as a country with a competitive corporate rate.

corporate-taxes.jpg

Source: OECD

The reasons for low U.S. revenue are the tax loopholes, shelters, and giveaways that minimize, or completely eliminate corporate taxes, and which McCain has not proposed fixing. A loophole allowing corporations to keep profits offshore aided Hewlett-Packard, whose CEO at the time was McCain economic adviser Carly Fiorina, in defering taxation on $14.4 billion. This lowered Hewlett-Packard’s effective tax rate from 35 percent to 12 percent.

As ABC’s George Stephanopolous pointed out during an interview with Fiorina, McCain’s proposed cut in corporate taxes won’t entice any corporations to bring money back to the U.S. “if they can pay no taxes” by taking advantage of offshore loopholes.

UPDATE: During an interview on CNBC today, Center for Economic & Policy Research co-director Dean Baker explained that it “doesn’t make any sense” to say that the corporate tax rate is “smothering the economy.” (4:20 into the video)

Baker: We used to have a 50 percent tax rate in the 50’s and 60’s when the economy had its most prosperous period, so I think you’re pretty hard-pressed to make the case that taxes are smothering the economy […] [T]he idea that somehow the tax rate, which is lower now than its been in years past, is strangling corporations, it doesn’t make any sense.

Security

Ceasefire In Georgia Dashes Neocon Predictions Of Russian Expansion In The Region

The New York Times reported that earlier today, Russian President Dmitri Medvedev had ordered a cease fire in Georgia saying that “the goal of the [military] operation has been achieved.”

His announcement, however, may have come as a shock to some neoconservatives. Within the last 24 hours, many have been latching onto another “domino theory” to justify U.S. involvement in the conflict — predicting that Russia would expand the war outside Georgia to other nations in the region, particularly Ukraine:

Max Boot: “The Russian attacks on Georgia, if left unchecked, could easily trigger more conflict in the future. [...] Today, Georgia; tomorrow, Ukraine; the day after, Estonia?”

– AEI Fellow and McCain adviser Gary Schmitt: “It is also about resisting Russia’s openly hegemonic designs on its neighbors — including Ukraine.”

Wall Street Journal: “Unless Russians see that there are costs for their Napoleon’s expansionism, Georgia isn’t likely to be his last stop.”

But staunch neocons John Bolton and Charles Krauthammer went a step further. Krauthammer said the U.S. should “protect Ukraine,” station U.S. troops there, and admit them into NATO, while Bolton claimed Russian Prime minister Vladimir Putin is trying “to recreate the Soviet Union.” Watch it:

Sen. John McCain (R-AZ), who has issued harsh rhetoric towards Russia in recent days, thinks that Bolton’s idea isn’t too far off the mark. McCain told a Pennsylvania radio station today that “it’s very clear that Russian ambitions are to restore the old Russian Empire. Not the Soviet Union, but the Russian Empire.”

The neocons have been eager to see U.S. military action against Russia in order to defend Georgia so it seems then that Medvedev’s announcement may come as sad news.

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Politics

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Politics

Mukasey Refuses To Prosecute Officials Who Politicized DOJ: ‘Negative Publicity’ Is Sufficient Punishment

When Attorney General Michael Mukasey testified before the Senate Judiciary Committee in June, Sen. Russ Feingold (D-WI) pressed him on how he would hold accountable the people who politicizing the Justice Department’s internship and Honors programs. Mukasey stumbled over his words and attempted to dodge the question, eventually admitting that nothing would happen to them since many of them had already left the department. Watch it:

In a speech today before the American Bar Association (ABA), Mukasey was more explicit in his rejection of any sort of review or prosecution, saying that the “negative publicity” they faced was enough:

That does not mean, as some people have suggested, that those officials who were found by the joint reports to have committed misconduct have suffered no consequences. Far from it. The officials most directly implicated in the misconduct left the Department to the accompaniment of substantial negative publicity. … To put it in concrete terms, I doubt that anyone in this room would want to trade places with any of those people.

Mukasey also reiterated that these former employees were not found to be in violation of any criminal laws. They did, however, violate civil service laws. A joint report by the Inspector General and the Office of Professional Responsibility found that in particular, Michael Elston, formerly the chief of staff to the Deputy Attorney General, “violated federal law and Department policy” by selecting candidates based on their political affiliations.

Clearly, the Bush administration seems to be betting that it will be able to escape any accountability for its misdeeds once it leaves office. In the meantime, officials are just running out the clock.

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Update

Matt Yglesias writes: “Michael Mukasey explains that just because his predecessors in the Justice Department were breaking the law with their hiring processes doesn’t mean anyone should be held accountable: ‘not every wrong, or even every violation of the law, is a crime.’ It’s an excellent slogan for the Bush administration.”


Update

,Steven Benen hits Mukasey for saying that “not every wrong, or even every violation of the law, is a crime.” He writes, “Wait, not every violation of the law is a crime? Isn’t that the definition of a ‘crime’?”


[updat
Featured

misshusseinmolly Says: “Is Mukasey expecting me to believe that ‘negative publicity’ is hampering the job search of any of these former Bushbots?

When he can name ANYONE connected with this administration whose life or career has been ruined by “negative publicity”, I might give that theory some credence. However, it seems that everybody has gone on to cushy lobbying jobs, consultants in the private sector, and even media jobs.”

Yglesias

Timeline is Not Surrender

William Beutler has assembled a handy timeline of my career:

Timeline

To answer one issue he raises, during the “pink” period I was, in fact, writing Tapped posts for the then-anonymous blog alongside Nick Confessore.

Politics

Huckabee tapes FNC pilot, rules out post in McCain administration.

In June, former presidential candidate Mike Huckabee inked a “one-year deal as a political commentator” with Fox News Channel. Today, the New York Post reports that Huckabee has “quietly taped a pilot in New York for a weekend cable TV show that is set to debut on Fox News Channel sometime this fall.” In addition, Huckabee ruled out a post in the next administration if Sen. John McCain (R-AZ) wins in the fall:

And what if Sen. John McCain wins in November? Would he take a cabinet post if offered?

“Why would I want to do that?” Huckabee says.

“I’m gonna have a good life out here in the private sector,” he says. “Why would I go back to telling everybody in the world how much money I make and…barely surviving to have some obscure cabinet post and have some 20-year-old from the White House telling me what I’m gonna do?

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