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Climate Progress

Republicans For Environmental Protection: ‘Conservatives, Of All People, Should Not Ignore Basic Principles Of Economics’

Republicans for Environmental ProtectionWhy are so many Republicans in Congress lying about green economy legislation? Republicans for Environmental Protection have no idea. In a sharply worded press release, this organization of conservation-minded conservatives criticize the Hill Republicans’ $3100 light-switch-tax lie, which is based on a deliberate misinterpretation of a Massachusetts Institute of Technology analysis of carbon pricing. They describe the GOP pattern of lying about energy as “a disservice to American citizens” and “a dangerous unwillingness to learn the right lessons from the election debacles of 2006 and 2008″:

Conservatives, of all people, should not ignore basic principles of economics. Such tactics, which are designed to score political points and gain headlines, are a disservice to American citizens, who urgently need Congress to debate the climate issue constructively. Voters are counting on their elected representatives to work together across party lines to develop balanced legislation to reduce greenhouse gas emissions, lower America’s dangerous dependence on oil, and help us move more quickly to a more diversified, robust energy economy.

REP’s statement explains that spreading lies about green economic policy is dangerous for our nation and even the political future of their own party. They offer one possible explanation why so many leading Republicans, from House whip Eric Cantor (R-VA) to Budget Committee ranking minority member Sen. Judd Gregg (R-NH), keep on lying:

Few except special interests and politicians who do their bidding would argue that limiting emissions that put human health and the environment at risk puts a burdensome “tax” on American families and businesses.

Text of the full release: Read more

Yglesias

Dropping Mark-to-Market is a Bad Idea

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When I first started hearing buzz about dropping “mark to market” accounting rules it sounded like a very bad idea to me. That said, it’s obviously not an issue I’m deeply versed in, and I heard some disagreement among folks who seem credible. But just as the Federal Accounting Standards Board was gearing up to relax mark-to-market rules, CAP’s Associate Director for Financial Markets Policy, David Min, was putting together this detailed explanation of what mark-to-market is and why we ought to keep it.

First he lays out why it’s the right standard, and then he argues (persuasively I think) that this FASB action is likely to compound our “animal spirits” problem and continue keeping investors in a maximally risk-averse posture:

So what would happen if FASB or regulators decided to repeal or suspend fair-value accounting rules? Well, any such moves could have severely deleterious effects. First, they would likely undermine investor confidence, decreasing transparency and increasing concerns about the accuracy of bank financial statements. This could have the effect of prolonging or worsening the credit crisis.

Second, the temporary or permanent cessation of fair-value accounting would set an unbelievably bad precedent—one that could wreak major damage to the integrity of U.S. securities markets. The setting of U.S. accounting standards has long been an independent nonpartisan process, free from political pressure. This is no small part of the success of the U.S. capital markets as it has created strong investor confidence that the rules of the game—the standards by which U.S. reporting companies disclose their financial results—are fair and will not change suddenly and arbitrarily.

Both of those sound right to me. On the second point, especially, it’s worth noting that it’s not as if what FASB did here was bow to longstanding critics of mark-to-market. The loudest voices calling for its dilution were the people who benefitted from marking to market when things were on the upswing, and then were hurt by it during the downturn. People behaving opportunistically is nothing new, but it’s bad for regulators to be willing to play calvinball like this and just switch accounting standards around to whatever happens to be more beneficial to certain firms.

It’s worth noting that part of the background to this crisis is a series of breakdowns by key supervisory institutions. This goes back to the dot-com bubble and bust. That stock market crash revealed substantial corruption in the practices of the major accounting firms in a way that was never really resolved. And the regulatory gaps were plugged by the Sarbanes-Oxley bill that’s almost universally seen as a failure—simultaneously burdensome to comply with and substantively toothless. Then more recently we’ve seen that the bond rating agencies can’t be trusted, and yet they’re still all there and still playing a crucial quasi-official role in the economy. Additional funny business with accounting and regulatory oversight is only going to further inspire people to fear that lurking behind any potential investment opportunity is some kind of scam that you’d do well to steer clear of.

Politics

King: Allowing Gay Marriage Will Make Iowa The ‘Gay Marriage Mecca’

king-steve21.jpgThis morning, the Iowa Supreme Court unanimously struck down a state law defining marriage as solely between a man and a woman. The Court ruled that the state legislature had improperly “excluded a historically disfavored class of persons from a supremely important civil institution without a constitutionally sufficient justification,” and stated unequivocally that gay marriage bans “denies gay and lesbian people the equal protection of the law.”

Rep. Steve King (R-IA) reacted with fury to the Court’s decision, calling the ruling “unconstitutional” and denigrating the “activist judges” who decided it. He called for an constitutional amendment banning gay marriage, and pressed for immediate action to prevent Iowa from becoming a “Mecca” for gay couples:

Now it is the Iowa legislature’s responsibility to pass the Marriage Amendment to the Iowa Constitution, clarifying that marriage is between one man and one woman, to give the power that the Supreme Court has arrogated to itself back to the people of Iowa. Along with a constitutional amendment, the legislature must also enact marriage license residency requirements so that Iowa does not become the gay marriage Mecca due to the Supreme Court’s latest experiment in social engineering.

King is so upset that he’s using rhetoric that combines what may be his two worst fears: gay people and Muslims. A sample of King’s long record of bigotry:

King compared gay people to unicorns and leprechauns. “Unicorns, leprechauns, gay marriages in Iowa — these are all things you will never find because they just don’t exist.”

King said Abu Ghraib abuse was just “hazing.” King said in a statement, referring to the abuse, “What amounts to hazing is not even in the same ballpark as mass murder.”

King sought to uphold anti-gay employment discrimination. “The Employment Non-Discrimination Act (ENDA) would force employers to hire homosexual employees.”

King refused to say ‘Happy Ramadan.’ In 2007, King refused to vote for a harmless resolution recognizing the Muslim holy month of Ramadan.

King insisted homosexuality was just a “behavior.” Declaring that “homosexual marriage is not a civil right,” King said sexual orientation “is a self-identified behavior, not an immutable characteristic.”

Despite the broad economic benefits predicted to flow to a state that allows gay marriage, it seems that the specter of gay couples immigrating to his state is too much for King to handle.

Yglesias

The End of Voice Mail

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Writing in The New York Times, Jill Colvin takes a look at a trend I’m definitely part of: The decline of voice mail.

If you leave a message on my cell phone, I might get back to you one of these days. If you leave a message on my office voicemail, forget about it. I’m not even entirely sure I know how to check it. Definitely the whole time I was employed at The Atlantic I never once returned a voicemail. I figure that anyone who’s really eager to get in touch with me will email me. In general, I’m not a fan of talking on the phone, but listening to recorded messages of other people talking to me on the phone is absolutely the worst.

Politics

Republicans for Environmental Protection calls GOP’s cap-and-trade myth ‘a disservice’ to Americans.

This week, the Wonk Room and ThinkProgress have noted that many congressional Republicans (at least 19) have been repeating a false claim that a cap-and-trade proposal currently before Congress is a “light switch tax” which would cost American families over $3,000 extra per year. They base their claim on a 2007 MIT study that actually says any tax burden would be about one-fortieth of what the Republicans claim. Yesterday, Republicans for Environmental Protection disparaged their colleagues, saying that “conservatives, of all people, should not ignore basic principles of economics”:

Republicans for Environmental ProtectionSuch tactics, which are designed to score political points and gain headlines, are a disservice to American citizens, who urgently need Congress to debate the climate issue constructively. Voters are counting on their elected representatives to work together across party lines to develop balanced legislation to reduce greenhouse gas emissions, lower Americas dangerous dependence on oil, and help us move more quickly to a more diversified, robust energy economy. [...]

Few except special interests and politicians who do their bidding would argue that limiting emissions that put human health and the environment at risk puts a burdensome “tax” on American families and businesses.

Yet congressional Republicans don’t seem to care. Today, House Minority Leader John Boehner (R-OH) issued a “Leader Alert” saying they won’t be backing down from their false claim.

Security

Obama’s Strategic Outreach

khamenei-khomeini.jpegLaura Secor’s article on Obama’s new Iranian charm offensive makes a very good argument for the U.S. offering to take regime change off the table in anticipation of talks. While noting that Iran’s rulers have “no more urgent interest than the regime’s own survival,” Secor recognizes the way that the regime’s “anti-American and anti-Israeli stances bind the hardliners to their small but loyal and heavily armed constituency, and they furnish a pretext for domestic repression.”

To give up this trump card–the non-relationship with the United States, the easy evocation of an external bogeyman–would be costly for the Iranian leadership. It would be a Gorbachevian signal that the revolution is entering a dramatically new phase–one Iran’s leaders cannot be certain of surviving in power.

The Bush administration got this dynamic all wrong when it insisted that Iran meet preconditions before coming to the negotiating table. The working assumption was that the lure of talks with the United States would be powerful enough to impel the Iranians to make a major concession. But what if talking to the United States is itself a concession — perhaps one of the toughest for the Iranians to make? That puts us in the very different, far less advantageous position of needing to offer Iran something it truly wants–like a security guarantee–up front. That’s appeasement, critics might object: How can we give up our trump card right at the outset? It looks bad if you think of it as unilateral disarmament. It looks less bad if you consider that the very act of entering direct talks with us means something for the Iranian regime that it doesn’t mean for us.

This is an important re-framing of the “more ideological than pragmatic?” debate that Secor notes has tended to dominate the U.S. debate over Iran policy. Like Secor, I think the evidence weighs strongly against the idea that Iran is interested in committing suicide, but there’s still a question of whether the very act of formally negotiating with the United States — and thus abandoning a central pillar of state ideology, anti-Americanism — could itself represent an unacceptable form of “regime change” for Khamenei.

In the end, Obama’s Iran outreach may simply not work, but it could effectively demonstrate to the Iranian people and others that the Great Satan is not the recalcitrant party. As newly-minted administration ally Robert Kagan wrote the other day, what’s the harm in trying?

Politics

After suggesting he would support it, Cao votes against Obama budget.

cao.jpgEarlier this week, Rep. Joseph Cao (R-LA) suggested to The Hill that he might “buck his party” and vote in favor of President Obama’s budget. The suggestion appeared eerily similar to his earlier suggestion that he might break with his party and support Obama’s economic recovery package. But then — as now — Cao couldn’t find the political courage to follow through when it came time to vote. Last night, along with the rest of the House Republican Conference and a handful of “moderate” Democratic members, Cao voted no on Obama’s budget. When he was first elected, Cao claimed he would be an independent voice on Capitol Hill. Now we know better.

Health

Sebelius: Obama May Look To ‘State Employee Health Plans’ As Model For Competing Public Health Plan

During yesterday’s confirmation hearing before the Senate Finance Committee, Gov. Kathleen Sebelius (D-KS) suggested that a new public health plan could be modeled on the experiences of state governments that currently offer their employees a choice between traditional private health insurance and a self-insured plan administered by the state:

The President clearly supported a public plan option as he outlined his thoughts about health reform strategy and I think is open to a variety of opportunities to discuss it. I do think it’s important to take a look at what’s going on around the country because clearly there are very successful side-by-side competitive options, as I say, most state employee health plans right now have a public option side-by-side with private insurers. It has not destroyed the market, it has not tilted the playing field, but that’s all about the way the rules are set.

Watch it:

While most critics have characterized the public option as a spin-off of Medicare — it would use Medicare prices and bargaining power — another option is to model the new plan on publicly-owned health insurance plans for state employees. In these self-funded state employee plans, available in more than 30 states, the government operates like an insurance company and competes with private insurance companies.

In their role as self-insured employers, states are responsible for containing costs, promoting quality, and assuring that employees get the benefits and the care they need. Although most states rely, as Medicare does, on third party administrators to pay claims, states are responsible for containing costs, promoting quality, and assuring that employees get the benefits and the care they need.

As the National Association of State Personnel Executives point out, “fully insured products also eliminate the need for a great deal of the customer support, transactional and other administrative functions that the state must provide when they literally become the insurance company under the self-insured model.” Self-funding provides states with greater flexibility, uniformity, and the “ability develop innovative cost containment measures such as aggressive disease management programs and centers of excellence.”

Sen. Chuck Schumer (D-NY), who is working on the public plan option for the Finance Committee, may be considering this kind of compromise. “My goal is to find a plan that would be acceptable to large numbers of senators,” Schumer said in an interview with the Associated Press. “Right now, the private insurers are totally opposed, but maybe there’s room.”

Private insurers are “taking a look at the different state employee plans to get a better understanding of how they operate” and some Republicans may also be open to the option. Responding to Sebelius’ description of an alternative public option design, Sen. Olympia Snowe (R-ME) said, “I appreciate that, and I hope we can continue to have that discussion and conversation and perhaps not solidify in our positions as we go forward on this crucial debate.”

Transcript: Read more

Climate Progress

Q: Does a climate bill have to be bipartisan?

I’m updating my previous answer to this important and complicated question, but sticking with “no” for four reasons:

1. Against all evidence, conservative Republicans have simply refused to budge on the global warming issue (see “House GOP pledge to fight all action on climate. “Why do conservatives hate your children?”). They would rather destroy the climate than support any government-led strategies to promote clean energy (see “Hill conservatives reject all 3 climate strategies and embrace Rush Limbaugh — what does that radicalism mean for Obama, progressives, and humanity?“). Indeed, they actually think they have a winning issue in attacking any effort to raise the price of carbon pollution (i.e. fossil-fuel-based energy): “Several prominent party officials said they believe the GOP’s message is fundamentally sound when it comes to energy policy, pointing to that issue as one of the few political bright spots in recent years.” I previously I don’t see that changing for at least several years.

2. Moderate Republicans are a vanishing breed — and the 2008 election booted many of the remaining ones out of Congress.

3 The most important thing is to get as strong a climate bill as possible over the next year. The Dems are going to have to compromise just to satisfy their own moderates (see “Moderate Senate Dems build ‘Gang of 16″² to influence cap-and-trade bill“). Weakening the bill further to get more than a few token Republicans would gut the whole effort.

Read more

Politics

RNC members question the ‘logic’ of Steele’s Limbaugh gaffe: ‘So what is true? Are you really apologetic?’

In an interview with CNN’s Don Lemon last month, RNC Chairman Michael Steele explained his embarrassing spat with Rush Limbaugh by claiming that it was a “strategic” move so that he could “see what the landscape looks like.” The Washington Times reports today that members of the Republican National Committee — Oklahoma RNC member Carolyn McLarty and Texas RNC member Cathy Adams — don’t buy Steele’s explanation:

But Mrs. McLarty said, “I don’t really buy that. I think he just said things in his gut that didn’t come out right for conservatives.”

Some RNC members say they no longer know when Mr. Steele means what he says and when his words are meant to be strategically misleading.

“So what is true? Are you really apologetic? We need to know,” Mrs. Adams said.

It shouldn’t be surprising for Steele to hear that people are questioning the veracity of what he says. In February, he told Glenn Beck that he had “absolutely no reason, none, to trust our word or our actions at this point.”

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