ThinkProgress Logo

Yglesias

Thune: Gay and Lesbian Jurists Need Not Apply

Of course I doubt John Thune would vote for a breeder nominee either:

[C]onservative leaders have warned the nomination of a gay or lesbian justice could complicate Obama’s effort to confirm a replacement for Souter, and another Republican senator on Wednesday warned a gay nominee would be too polarizing.

“I know the administration is being pushed, but I think it would be a bridge too far right now,” said GOP Chief Deputy Whip John Thune. “It seems to me this first pick is going to be a kind of important one, and my hope is that he’ll play it a little more down the middle. A lot of people would react very negatively.”

I assume that Obama will get 38 or 39 “no” votes no matter who he picks, so I don’t think any of this should be taken very seriously. But it’s nice to see some old-fashioned, un-subtle bigotry.

Politics

Limbaugh Responds To Powell: He Needs To ‘Close The Loop And Become A Democrat’

On Monday, former Secretary of State Colin Powell said that he believed the Republican party is in “deep trouble,” “getting smaller,” and being led by polarizing figures like Gov. Sarah Palin (R-AK) and Rush Limbaugh. Powell said further that the party must realize that “Americans do want to pay taxes for services.” Of Limbaugh specifically, Powell said, “I think what Rush does as an entertainer diminishes the party and intrudes or inserts into our public life a kind of nastiness that we would be better to do without.”

Today on his radio show, Limbaugh responded by calling Powell “just another liberal.” Limbaugh said Powell should “close the loop” and leave the Republican party instead of “claiming” to be interested in reforming it. Additionally, Limbaugh reiterated his previous claim that Powell endorsed Obama only because of his race:

LIMBAUGH: [Powell] is out there saying I am killing the republican party while he endorsed and voted for Obama. … He’s just mad at me because I’m the one person in the country who had the guts to explain his endorsement of Obama. It was purely and solely based on race! There can be no other explanation for it. What Colin Powell needs to do is close the loop and become a Democrat instead of claiming to be a Republican interested in reforming the Republican party.

Limbaugh concluded, “The only reason to endorse Obama is race. I don’t think Powell thought he could get away without with not endorsing Obama. … So I don’t care.” Watch it:

Greg Sargent concludes, “The optics of this one are not good.” Indeed, congressional Republicans are working extremely hard to ensure their rebranding effort is tailored to Limbaugh’s liking. Will they spoil their efforts by denouncing Limbaugh’s latest rant?

Health

Media Buys What The Health Insurance Industry Is Selling

healthinsurDuring yesterday’s hearing before the Senate Finance Committee, America’s Health Insurance Plans President and CEO Karen Ignagni attempted to discourage Democrats from enacting a new public health care plan by reiterating the industry’s support for guaranteed issue — offering coverage to every applicant — and modified community rating — charging everyone the same premiums — (so long as both regulations are paired with an individual requirement to buy insurance).

Press coverage of the event centered around the insurance industry’s so-called “concessions”:

- AHIP Pleads Its Case: Regulate Us: “In a rare sight on Capitol Hill for any industry, health insurers practically begged senators Tuesday to regulate their livelihood rather than subject them to the fierce, and potentially lethal, competition that would ensue if lawmakers unleash a government-run public insurance option on them.” [National Journal, 5/06/2009]

- Insurers Offer Concession On Premiums: “Health insurers have offered to submit to a series of restrictions they contend would add up to a fairer marketplace and cut into the ranks of the 50 million uninsured.” [Boston Globe, 5/06/2009]

- Health Insurers Agree to End Higher Premiums for Women: “It was the latest concession by insurers as Congress drafts legislation to overhaul the $2.5 trillion health care industry.” [NY Times, 5/06/2009]

The industry had offered similar concessions in December 1992, before launching an all-out attack on President Clinton’s health care reform efforts. Of course, that’s not to say that insurers will adopt a similar strategy this time around. Ignagni and her team may run issue ads against certain provisions but are unlikely to oppose the entire effort.

Still, before we credit the industry for cooperating with progressive reformers, we should consider Ignagni’s proposal. The industry envisions a reformed marketplace in which everyone is required to purchase coverage. In return, insurers would no longer deny coverage to Americans with pre-existing conditions or charge sicker Americans higher premiums than healthier Americans. Women would not pay more than men and insurers would invest more in preventive care and care coordination.

But as Howard Dean pointed out in an interview with ThinkProgress, “if we only get community rating and guaranteed issue that’s great insurance reform, but that is not health care reform and nobody should mistake it.” Indeed, reforming the insurance industry is all about restoring competition. Already, “1 in 6 metropolitan areas in a 2008 study of more than 300 U.S. markets is dominated by a single health insurer that controls at least 70% of consumers enrolled in health maintenance organizations or preferred provider organizations.”

Such consolidation negates any real competition, preventing insurers from having to negotiate prices and lower premiums. In fact, while “there have been over 400 health care mergers in the last 10 years,” premiums have risen “nearly eight times faster than average U.S. incomes.” Insurers fear a public plan because it has the potential to work all too well, force private plans to lower prices and cause some enrollees to shift to public coverage. And it’s this fear that’s drawing insurers to the reform table.

A new public plan, after all, would complement the private market and offer Americans a real choice of coverage. It would also help pioneer new payment and quality-improvement methods that could set the standard for private plans and use its lower administrative costs and bargaining power to better control health care costs.

Ignangi points to the Federal Employees Health Benefits exchange — which does not include a public health option — as an example of a successfully regulated health care market. But as Jacob Hacker argues, “FEHBP’s annual growth rate of per enrollee spending averaged 7.3 percent from 1985 to 2002 (the most recent currently available data year) compared with 5.8 percent for Medicare. Indeed, the growth rate for FEHBP is virtually identical to that for private health insurance over this period.”

The industry’s so-called “concessions” are designed to protect their monopoly over the health insurance market, not lowering health care costs or offering Americans better quality care.

Update

Sen. Claire McCaskill’s (D-MO) office has just issued a press release announcing that “FIVE ADDITIONAL SENATORS EXPRESS SUPPORT FOR PUBLIC HEALTH INSURANCE OPTION.” This brings the total in the Senate to 21: Sens. Daniel K. Akaka (D-HI), Barbara A. Mikulski (D-MD) Russ Feingold (D-WI), Benjamin L. Cardin (D-MD), Claire McCaskill (D-MO), Sherrod Brown (D-OH), John D. (Jay) Rockefeller (D-WV), Dick Durbin (D-IL), Charles E. Schumer (D-NY), Tom Harkin (D-IA), Daniel K. Inouye (D-HI), Carl Levin (D-MI), Jack Reed (D-RI), Debbie Stabenow (D-MI), Bernie Sanders (I-VT), Bob Casey (D-PA), Jim Webb (D-VA), Sheldon Whitehouse (D-RI), Jeff Merkley (D-OR), Ted Kaufman (D-DE), and Kirsten Gillibrand (D-NY).

Yglesias

Pakistan-US Relations Are Upside Down

06diplo-600-1

I think the headline “U.S. Presses Visiting Pakistani Leader on Taliban Threat” pretty much sums up what’s gone wrong in the US-Pakistan relationship. The Pakistani Taliban are waging a war whose aim is to overthrow the government of Pakistan. And yet somewhere we’re the ones pressing the Pakistanis about the need to focus on the threat? It’s weird:

The Obama administration sought Wednesday to ratchet up pressure on the Pakistani government to crack down on the Taliban in the western part of the country, as congressional leaders and administration officials expressed increased concern over the deteriorating situation in Pakistan, where insurgents have taken over territory just 60 miles from the capital.

This is backwards. Or upside-down. It should be that the Pakistan government is very concerned about the Taliban and asking us for aid and support in fighting them. In order to persuade us to do that, Pakistani officials should be explaining that the threat to Pakistan is also a threat to the United States. The current dynamic is perverse. I don’t know exactly what the issue is, but it doesn’t make sense for the American government to be acting as if this is a bigger deal for us than it is for the Pakistanis.

Politics

Buchanan: ‘What is happening now to white men right now is exactly what was done to black folks for years.’

On MSNBC’s Hardball last night, host Chris Matthews, Salon’s Joan Walsh and MSNBC’s Pat Buchanan debated the case of firefighter Frank Ricci, who was denied a promotion due to an affirmative action law. During the debated, Buchanan vociferously defended Ricci, eventually declaring that “what is happening now to white men right now is exactly what was done to black folks for years.” Matthews and Walsh quickly disagreed with Buchanan. “No, they’re not being lynched, Pat. They’re really, they’re not being lynched,” said Walsh. Watch it:

Yglesias

The Cost of Delay

greenjobs2-1

Ezra Klein joins in with Kristen Sheeran and Mindy Lubber to remind Robert Samuelson and the Washington Post op-ed team that you can’t talk about how costly it will be to mitigate climate change without also talking about how costly it will be to let a climate crisis wash over us.

Another point I would make is that as costly as it is to act today to reduce carbon emissions, it’ll be much more costly to start doing it ten years from now.

Think back to 1990. Both the 1990 budget and the 1993 budget contained unpopular tax increases. Suppose that instead of those unpopular tax increases, those budgets had created and then raised a carbon tax. Well, that would have been unpopular. But what was actually done was unpopular too. And consider where we’d be today, climate-wise. Well, we’d probably still need to do a comprehensive overhaul of our energy policy. And we’d probably still need to change things around and have a cap-and-trade system since to really cope with the climate problem you need to cap the overall level of emissions. But in a whole bunch of ways we’d be in much better shape than we are today. For one thing, in this alternative reality our 2009 emissions would be lower, so lowering them to a sustainable level wouldn’t require such steep cuts. But for another thing, the total level of carbon in the atmosphere would be lower and the current average temperature would be lower, so for both of those reasons the sustainable level of ongoing emissions would be higher than it currently is.

In other words, we’d be looking at smaller cuts from a lower level.

Meanwhile, our past 18 years worth of investment in infrastructure would look somewhat different. The new houses constructed would, on average, be a little bit smaller a little bit closer together and there’d have been a little bit more attention to insulation. These slightly smaller houses would have been slightly cheaper, and people would have spent more money on something else. The result would not only be a dynamic in which current emissions were lower, but also a dynamic in which people found it easier to adjust to more drastic emissions curbs.

All things considered, we’d be in much better shape. And much the same is true about the case for acting quickly versus getting scared by the costs and doing nothing. Just pretending that the climate crisis isn’t real doesn’t change the fact that it is real. And since it’s real, we’ll have to do something. But if we think the changes we need to make today are difficult, they’re nothing compared to what the needed changes will look like in 2020 if we keep on the business as usual path.

Climate Progress

Cool Companies, Part 1: How the best businesses boost profits and productivity by reducing greenhouse gas emissions

[Please send me any case studies of companies, buildings, and factories in the last 10 years that have cost-effectively reduced and carbon emissions. I am, as always, looking for well-documented cases where a systems approach to energy and carbon achieved deep savings and productivity gains.]

Ten years ago next month I published the first collection of detailed case studies, some 100 in all, of how businesses were cutting energy use and boosting productivity while reducing pollution:  Cool Companies.

The few times that I have posted case studies here, many people have been surprised by the savings that real companies have achieved (see for instance the Dow Chemical energy contest results in “Energy efficiency, Part 2: The limitless resource” or “Car plant cuts energy costs $627,000 with 2-month payback (!) “” with DOE help“).

The myth that reducing greenhouse gas emissions has a high cost for U.S. businesses is one of the greatest impediments to strong climate action.  Yet all of the major economic studies of climate understand and model large potential savings (see “Intro to climate economics: Why even strong climate action has such a low total cost — one tenth of a penny on the dollar“) — although they haven’t modeled savings as large as the best companies have achieved.  That macroeconomic analysis needs to be bolstered by more microeconomic success stories in order to be as compelling as possible.

In short, I think it is time once again to start publishing case studies.  I ultimately plan to publish a number of new case studies.  But for now let me start with some old ones.  Sadly, the overwhelming majority of companies, buildings, and factories have still not done what the best did a decade ago as documented in my book.  So the stories and strategies remain relevant.  Let’s start with an overview of some the best cast studies:

Read more

Politics

Cheney On Why He Speaks Out: I’m Doing It For ‘The Little Guys’

cheney21561Since leaving office, Vice President Cheney has launched unrelenting and baseless attacks on President Obama while vigorously defending the Bush administration’s actions, which are currently being investigated. “I think that’s a great success story,” Cheney said of the Bush administration’s torture program. “It was done legally. It was done in accordance with our constitutional practices and principles.”

In an interview with biographer Stephen Hayes on Monday, Cheney explained why he has emerged as such a vocal Bush defender and Obama critic — in contrast to President Bush, who says Obama “deserves my silence.” Cheney said that when he was a member of Congress during the Iran-Contra investigations (of which he was a prominent critic), he saw firsthand senior administration officials absolving themselves while unfairly pinning blame on the “little guys.” Because of this, Cheney said, he “sure as hell will” continue to speak out:

CHENEY: I went through the Iran-contra hearings and watched the way administration officials ran for cover and left the little guys out to dry. And I was bound and determined that wasn’t going to happen this time. I think to George Tenet’s credit–I don’t agree with George on a lot of stuff–but I think he was of the same view and that’s why we had all of these requests coming through for policy guidance and for legal opinions. And this time around I’ll do my damndest to defend anybody out there–be they in the agency carrying out the orders or the lawyers who wrote the opinions. I don’t know whether anybody else will, but I sure as hell will.

Cheney’s defense of the “little guy,” especially with regard to torture, is unusual. First, the Bush officials implicated in approving torture were hardly “little” — they were the senior-most Bush administration officials, such as David Addington, Jay Bybee, and Alberto Gonzales.

Second, after Abu Ghraib broke in 2004, Cheney and the Bush administration systematically laid the blame for the abuses on low-level interrogators and attempted to exonerate senior officials. Cheney, for example, blamed “folks doing something improper, inappropriate, illegal.” Paul Wolfowitz famously called it the work of “a few bad apples.” Former press secretary Tony Snow called the abuses “a criminal infraction for which people were charged.”

Yet as a recent Senate Armed Services Committee report observed, “The abuse of detainees in U.S. custody cannot simply be attributed to the actions of ‘a few bad apples’ acting on their own.” Indeed, the tactics were directly approved by Donald Rumsfeld in 2002.

Economy

Report: Wall Street Firms Drove The Subprime Crisis, Fueled Drop In Lending Standards

wallstThe Center for Public Integrity (CPI) released an extensive report today that shows how complicit Wall Street firms were in fueling the subprime mortgage crisis. According to CPI, “at least 21 of the top 25 subprime lenders were financed by banks that received bailout money — through direct ownership, credit agreements, or huge purchases of loans for securitization.”

This, in itself, is not all that surprising. We wouldn’t be in our current situation if the big, systemically important firms hadn’t mucked around in the subprime world. But later in the report, CPI shows how this mass underwriting and securitizing caused a ton of trouble:

Unlike traditional mortgage lenders, who make their money as borrowers repay the loan, many subprime lenders made their money up front, thanks to closing costs and brokers fees that could total over $10,000. If the borrower defaulted on the loan down the line, the lender had already made thousands of dollars on the deal. And increasingly, lenders were selling their loans to Wall Street, so they wouldn’t be left holding the deed in the event of a foreclosure. In a financial version of hot potato, they could make bad loans and just pass them along.

Thanks to securitization, the subprime lenders didn’t actually care about mortgage defaults, because they were so far removed from the original mortgage by the time a borrower stopped paying. But the Wall Street firms would also turn right around, sell the loans to institutional investors, and use the money raised to buy more subprime loans, in a vicious cycle of buying, selling, and lending. Thus, we had this phenomenon:

In 1994, the median loan after adjusting for inflation was $120,000…The median income of borrowers was $73,000. That’s a loan-to-income ratio of 1.65. So borrowers were taking out loans that amounted to 165 percent of their salary…By 2005, the peak of the subprime lending boom, the median loan grew to $183,000 while borrowers’ median income remained roughly the same. That amounts to a loan-to-income ratio of 2.46. That meant the typical loan amounted to 246 percent of annual income.

income

Of course, there were many factors contributing to this rise in percentage of income devoted to housing, including some non-quantifiable societal trends. But the fact remains that lenders and investors alike risked less and less on a loan, which helped push standards lower and lower.

So what to do? The House Financial Services committee has passed a bill that “would require lenders, bond investors and others involved in the repackaging of home loans into securities to retain a minimum of 5 percent credit risk,” which will move the the full House and the Senate. At least this would prevent all of the risk from being passed down the line, and make lenders care (somewhat) if a borrower defaults. This can’t be the last step taken to rein in Wall Street, but its certainly a good place to start.

Yglesias

CAP, AEI, and Education Entrepreneurship

Seyward Darby at TNR takes note of a recent report “Stimulating Excellence: Unleashing the Power of Innovation in Education” that was done as a joint project by CAP and the American Enterprise Institute. The term “odd couple” comes up.

It is worth saying that though CAP and AEI are typically on different sides of issues, it’s not really all that odd to see CAP and AEI having some similar views on K-12 education. It’s simply not an issue where the main disagreements track the partisan divide all that closely. The controversial No Child Left Behind law was very much a joint project of Ted Kennedy (D-MA) and George Miller (D-CA) and the Bush administration. And at the same time, the opposition—from supporters of local control of schools, from teacher’s unions, from many rural states with few non-white schoolchildren, etc.—is very much a bipartisan phenomenon. That structure has basically been replicated in the think tank world with both CAP and AEI generally supportive of the that basic trajectory of policymaking while the Economic Policy Institute and the Cato Institute have been generally hostile. This is, in other words, the latest manifestation of a longstanding alignment of groups.

Meanwhile, I can’t mention education innovation without plugging “Changing the Game: The Federal Role in Supporting 21st Century Educational Innovation” by Sara Mead & Andy Rotherham.

Older

Newer

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up