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Economy

White House Aides Complain That Executive Salary Caps Are Too Tough

During final negotiations on the $787 billion economic recovery package last week, Senate Banking Committee Chairman Chris Dodd (D-CT) “slipped in a provision to limit bonuses for executives at institutions receiving government bailout funds to a third of their salaries.” The limits go beyond what President Obama had proposed. The caps also apply to a wider circle of employees at financial firms, rather than just the senior executives.

The White House is concerned that the stringent limits “could prompt financial institutions to repay the government too quickly.” Financial firm lobbyists are also worried that they will lose personnel, “driving talented employees to companies that aren’t subject to the regulation or to overseas banks.”

On the Sunday shows this morning, White House aides David Axelrod and Robert Gibbs indicated that they wanted Congress to loosen the executive pay provision. On Fox News Sunday, Axelrod said the White House plans to work “with the Senate to come up — and the House — to come up with an appropriate approach to this.” On Face the Nation, Gibbs similarly said, “We look forward to working with Congress as we go forward on all measures of executive compensation,” but wouldn’t say whether the White House is “satisfied” with the pay limits.

It doesn’t appear Congress is too willing to revise its legislation, however. On Face the Nation, Republican Sen. Richard Shelby and Democratic Rep. Barney Frank both expressed their approval of the executive pay limit:

SCHIEFFER: So, even though you voted against this bill, you sound like you’re very much for this provision.

SHELBY: I — I am. I think we need that. [...]

FRANK: Let me be very clear. Mr. Gibbs may not like it, but it’s gonna be enforced. … This is not an option. This is not, frankly, the Bush administration where they’re going to issue a signing statement and refuse to enforce it.

Watch it:

Commenting on the issue of “executive compensation,” The New Yorker’s Hendrik Hertzberg recently wrote, “I have to say, I get a little dizzy with disgust whenever I hear that word used to describe some C.E.O.’s pay envelope. … What, exactly, are these people being ‘compensated’ for? Are they victims of crime? Or is it the long hours, the loneliness, the inability to spend time with their children—so much more terrible than the plight of a middle-aged immigrant mother working double shifts as an office cleaner?”

Yglesias

What Happened to the Peace Progressives?

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Robert Farley comments on the chapter of George C. Herring’s From Colony to Superpower that deals with the interwar period:

Herring pays a fair amount of attention to the Peace Progressives, a group of mostly Midwestern, mostly Republican lawmakers. The Peace Progressives believed in both world peace and fiscal responsibility; in so doing they made the (almost heretical in the current political climate) connection that weapons cost money, and that the interest of small government is best served by tight limitations on the size of military forces. The pursuit of international routes to peace (Kellogg-Briand Pact, for example) abetted the interest in fiscal responsibility by reducing the need for large military establishments. I think it’s odd that this combination (preference for low tax, low domestic expenditure, low defense expenditure) seems to occur so rarely in the American political context; perhaps the development of the military-industrial complex served to capture pro-business (such that the term has any meaning…) legislators, or the perceived threat of communism helped purge Republican party doves?

I think the factors Farley mentions certainly do play a role. The dawn of the Second World War and then the Cold War made the case for a large defense establishment much stronger on its merits. But the prolonged existence of said defense establishment helped establish support for a large defense establishment as an entrenched commitment of the American right.

But I would also point to another factor. If you look to, say, the Cato Institute you’ll find some admirable work on defense budget issues that in a lot of respects is the heir to the thinking of the interwar “peace progressives.” And that’s about as it should be since if you want to find modern-day admirers of Calvin Coolidge and Warren Harding, you’d best look to outfits like Cato. But one important difference between the peace progressives and today’s right-wing defense skeptics is that the peace progressives were committed internationalists who believed in things like the Washington Naval Treaty, the Kellog-Briand Pact, and other multilateral arms control and conflict prevention efforts.

In my view, the approach to world affairs that’s broadly skeptical of the desirability of gargantuan military forces and aggressive use of force simply isn’t tenable without that component. A modern-day worldview that aims to reduce unnecessary defense expenditures and allow those resources to flow to productive use needs to be engaged with things like the effort to pass a Law of the Sea Treaty, the Comprehensive Test Ban Treaty, the efforts to restrict the use of land mines and cluster bombs, the effort to establish an International Criminal Court, etc. These days, such an approach to foreign policy tends to be advocated by people (like me) who have a more social democratic approach to domestic issues. Which is good for us. But I think we could use more allies on the small government right.

Politics

Gingrich’s obstructionism becomes role model for House GOP.

In 1993, former Speaker Newt Gingrich notoriously whipped the House GOP into opposing President Clinton’s major initiatives, ranging from the budget to health care reform. The New York Times reports that Gingrich has been advising the GOP leadership to follow the same path with President Obama’s agenda:

images.jpg[Rep. Eric] Cantor said he had studied Mr. Gingrich’s years in power and had been in regular touch with him as he sought to help his party find the right tone and message. Indeed, one of Mr. Gingrich’s leading victories in unifying his caucus against Mr. Clinton’s package of tax increases to balance the budget in 1993 has been echoed in the events of the last few weeks. “I talk to Newt on a regular basis because he was in the position that we are in: in the extreme minority,” he said.

As ThinkProgress has noted, despite being out of office, Gingrich still has found a key role in current legislative debates. In September, he “was whipping against” the first TARP package “up until the last minute” and was said to have been largely responsible for the GOP voting against it.

Update

In 1993, speaking about Clinton’s budget, Gingrich warned: “I believe this will lead to a recession next year. This is the Democrat machine’s recession, and each one of them will be held personally accountable.”

Yglesias

Political Instability Rises Along With Joblessness

Nelson Schwartz has a good piece in The New York Times about how the worsening economic situation is threatening political stability in many countries.

One virtue of living in a democracy, of course, is that we can channel this kind of discontent in peaceful ways—Barack Obama becomes president, Labour will almost certainly get the sack in the U.K.—whereas there’s some chance that an authoritarian country like China will totally melt down. Of course in the U.S. system it’s possible for a minority of Senators to thwart efforts to change things through the electoral system.

Politics

Is Jeb Bush criticizing Rush Limbaugh?

In an interview with Fred Barnes for the Wall Street Journal, former Florida Gov. Jeb Bush (R) advised Republicans to “avoid personal, partisan attacks” on President Obama:

I would never want Obama to go through what my brother went through. It might be fair that every president gets the same amount of vitriol. But it’s not right for our country, it’s not going to help us, and it’s not going to help Republicans.

If Bush is sincere about that message, he should direct it as his fellow Sunshine Stater, Rush Limbaugh. Just this past Friday, Limbaugh reiterated his desire to see Obama fail. “I want everything he’s doing to fail. … I want everything he’s doing to fail,” Limbaugh said. Watch it:


Update

In Aug. 2008, Jeb told Rush: “One of the highlights, one of the great things about your show is it’s broadcast in the Sunshine State, for which a whole lot of Floridians are very grateful, including me.”

Yglesias

Burris Changes His Tune on Blago Contacts

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It seems to me that Roland Burris never should have accepted Ron Blagojevic’s offer to have him become a pawn in the corrupt governor’s insane gambits. And he certainly shouldn’t have done this:

Senator Roland W. Burris of Illinois acknowledged in documents made public Saturday that the brother of former Gov. Rod R. Blagojevich sought campaign fund-raising help from him in the weeks and months before his appointment to succeed Barack Obama as the state’s junior senator.

Mr. Burris said he provided no money to Governor Blagojevich’s campaign in response to the brother’s request.

The disclosure was different from Mr. Burris’s earlier descriptions, including one under oath, of his conversations with those closest to the former governor. It raised new questions about events that preceded Mr. Burris’s unusual appointment in late December and prompted some Republican lawmakers in Illinois to immediately demand an inquiry into whether Mr. Burris committed perjury.

The good news, though, is that Blago is on his way out one way or another. But meanwhile the equally corrupt Norm Coleman, despite having been beaten at the ballot box, is getting solid support from Republicans across the country in his effort to mount endless legal challenges and keep Al Franken out of the Senate.

Security

‘This Is Not A Paid Advertisement For The F‑22′

f22-raptor.jpgDespite the fact that Mark Bowden actually quotes an Air Force officer saying “This is not a paid advertisement for the F‑22″ in it, there’s really no way to describe Bowden’s new article for the Atlantic as anything other than a commercial for the program:

American air superiority has been so complete for so long that we take it for granted. For more than half a century, we’ve made only rare use of the aerial-combat skills of a man like Cesar Rodriguez, who retired two years ago with more air-to-air kills than any other active-duty fighter pilot. But our technological edge is eroding—Russia, China, India, North Korea, and Pakistan all now fly fighter jets with capabilities equal or superior to those of the F-15, the backbone of American air power since the Carter era. Now we have a choice. We can stock the Air Force with the expensive, cutting-edge F‑22—maintaining our technological superiority at great expense to our Treasury. Or we can go back to a time when the cost of air supremacy was paid in the blood of men like Rodriguez.

This is accompanied by a video that, like the above quote, is about as subtle as a red, white and blue tuxedo.

Both the article and video cite the Cope India 2004 exercises — in which Indian pilots flying Russian-built Su‑30s, MiG-21s and -29s performed surprisingly well against U.S. pilots in F-15s and -16s — as evidence in favor of the F-22. As Noah Shachtman noted at the time, USAF pilots participated in Cope India under self-imposed handicaps — it was in no sense a straight fight, let alone an actual representation of how U.S. pilots and equipment would perform in a plausible combat scenario. It was, however, trumpeted throughout the media as a “wake-up call” demonstrating the need to spend huge quantities of money on the F-22 — precisely as it’s deployed in Bowden’s article. Echoing comments that I’ve heard from a number of others, Shachtman quoted a contributor to the National Security roundtable who snarked “What better way to keep an aerial boondoggle like the F-22 program healthy and sucking up funds” than to rig and promote an exercise just like that?

Maybe all that money that Boeing and Lockheed Martin have been pouring into publicity for the F-22 is showing results. Or maybe they just got this one for free.

Yglesias

The New Filibuster

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Kevin Drum raises an important point, namely that “The filibuster was never intended to become a routine requirement that all legislation needs 60% of the vote in the Senate to pass.”

Indeed, the filibuster was never intended at all. A few years into the existence of the U.S. Senate, they undertook a review of their rules. A determination was made that the motion to end debate was unnecessary, so it was removed from the rulebook. The Senators who made that decision suffered from a lack of imagination, because they didn’t see that having stripped it from the rulebook they’d created a situation in which a minority could block action on legislation. You can tell they didn’t intend to do that because there was no filibustering for a while. But under this second rule-set, in principle a minority of one could block legislation.

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Again, it obviously wasn’t the intention to implement a unanimity rule for the Senate. Eventually, that was changed to allow a 67 vote supermajority and then later a 60 vote supermajority to end a filibuster. But still, even when that last reform was implemented in the mid-1970s the idea wasn’t to create a routine requirement that legislation receive 60 votes.

But as we can see in the chart on the right, there’s been over time a steady increase in filibustering. Democrats were feeling chastened after the 2002 and 2004 elections, so filibustering dipped somewhat in those congresses while still staying high above the levels that has persisted in the 1980s. The result now is that you’ve started hearing talk about how you “need 60 votes” to pass something in the Senate, rather than saying that you need 50 votes and also that a minority might engage in the extraordinary measure of filibustering.

None of this has ever been a good idea. But when it was genuinely reserved as an extraordinary measure, it was a bad idea whose badness could be overlooked. But as it’s become a routine matter, it’s become a bigger and bigger problem. It needs to be reformed. If need be, perhaps the Senate could agree to some kind of phase out. Pass a measure in the 111th congress saying that there will be no filibustering starting with the 113th congress. That would avoid the sense that the reform was a mere power grab.

Climate Progress

AAAS: Climate change is coming much harder, much faster than predicted

[Please Digg this by clicking here.]

The American Association for the Advancement of Science is holding its annual meeting, so you can expect a flurry of climate announcements — though not as much as at the annual meeting of the American Geophysical Union (see here and here). The Washington Post and AFP are reporting:

It seems the dire warnings about the oncoming devastation wrought by global warming were not dire enough, a top climate scientist warned Saturday.

Okay, this is what I’ve been saying for a few years now, but it’s good to hear more and more leading climate scientists besides James Hansen and John Holdren being blunt with the public on this (see links below for others who are now telling it like it is). In this case, it’s Christopher Field, founding director of the Carnegie Institution’s Department of Global Ecology at Stanford University, who said

“We are basically looking now at a future climate that’s beyond anything we’ve considered seriously in climate model simulations.”

The source of Field’s concern — what else could it be but our old nemesis, amplifying carbon cycle feedbacks:

Read more

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