Guest Post

Shock Therapy

Paul Krugman: "... if America has become more oligarchic and less democratic over the last 30 years — which it has — that’s to an important extent due to the decline of private-sector unions.... The fiscal crisis in Wisconsin, as in other states, was largely caused by the increasing power of America’s oligarchy. After all, it was superwealthy players ... who pushed for financial deregulation and thereby set the stage for the economic crisis of 2008-9, a crisis whose aftermath is the main reason for the current budget crunch. And now the political right is trying to exploit that very crisis, using it to remove one of the few remaining checks on oligarchic influence."

Kate Madison of Depoe Bay, Oregon, comments:

Scott Walker, the Tea Party governor of Wisconsin, is doing, as Naomi Klein, explains: "a classic example of The Shock Doctrine," her excellent book about how politicians create a crisis (or take advantage of one--i.e, 9/11)," then use that crisis as an excuse to push through horribly unpopular economic policies." [CW: You can hear Klein's comments in the video in The Commentariat for February 20.]

Let's face it, people! Democracy in America is in hospice, and not doing well at all. Ronald Reagan, our first oncologist, treated our economy with Milton Friedman's "free market" chemotherapy, and the rich got richer, but the cancer worsened. Our prognosis has gone downhill from there. Each succeeding President has promised a new, less toxic, form of chemo to address our festering economic cancer, but each has cooked up another "free market" concoction -- hidden in giveaways to corporations -- with George W. Bush's almost lethal cocktail being the worst. The rich just kept getting richer, and the economy sicker.

Then, in 2008, we got Barack Obama, the man of HOPE. He promised an entirely new form of chemotherapy to address the dying economy and bring our Democracy back to the land of the living. Sad to say, President Obama came down with a bad case of "corporate flu," a virus passed to him through Wall Street dollars. This blinded him to the reality of what needed to be done. So he too decided to use "free market" chemo and called in Larry Summers and Timothy Geithner to administer the "new and better potion," assuring us this was different. Some of us pointed out that there were Nobel laureate economists, Paul Krugman and Joseph Stiglitz, who had a different idea of a cure for our cancerous, fast failing economy, and an entirely different idea about chemotherapy. Obama said "no thanks," but graciously offered to do lunch sometime. Then he extended the Bush tax cuts for the richest two percent.

The rest is history. EXCEPT -- the people of Wisconsin understand what the chemo (now proposed by a Tea Party governor, which involves neutralizing their unions) would actually do to them. Wisconsin may be economically ill, but its citizens are not stupid, and they have their eyes wide open. They know at the beginning of 2010 Wisconsin had a budget surplus which the governor gave away in tax breaks (to corporations that had supported him), creating a deficit. So ... the people are writing their own story to resist the false panic that the psychopathic governor is telling them is "the only alternative." They have rejected Walker's chemo, and are strengthening their collective immune system through mass demonstrations,  speaking up and refusing to turn their rights over to a quack. Free market chemotherapy is in reality a toxic, tired tea. And the people in Wisconsin are not going to drink it! Give it to the Tea Party zombies that Americans for Prosperity have bussed into Madison from out-of-state to try to stir up the protesters and confuse the rest of us. Maybe it will put them back to sleep.

Cross-posted on Sardonicky.

The Commentariat -- February 20

From Pete Seeger's 90th Birthday Concert, Madison Square Garden, May 3, 2009. Featuring Billy Bragg, Mike & Ruthy Merenda, Dar Williams, New York City Labor Chorus. Many thanks to reader Dave S:

... Steven Verberg of the Madison, Wisconsin State Journal: "... a new report by the liberal Economic Policy Institute ... looks at total compensation -- pay and benefits together -- and found that public workers earn 4.8 percent less than private sector employees with the same qualifications and traits doing similar jobs.... Average compensation for public workers is higher because the jobs they do -- such as teaching -- require a relatively high level of education..., said a senior policy analyst at the institute. Yet the typical Wisconsin public sector employee with a bachelor's degree makes less than $62,000, compared to more than $82,000 in the private sector...." ...

... Karoli of Crooks & Liars has a terrific post on a Fox "News" "bulletin" that supposedly outs doctors for giving fake medical excuses to teacher-protesters who have called in sick to their schools during the Wisconsin protests. The content of the Fox "bulletin" is Breitbart creative crap embellished by a Koch brothers-backed "think tank." With video. CW: I don't know why Fox even bothers to occasionally report actual news. It's so much more fun to make your own. 

... Monica Davey of the New York Times profiles Gov. Scott Walker of Wisconsin. CW: the profile isn't going to make you like him any better. ...

... Brady Dennis of the Washington Post tells the same story: Walker has a history of taking irresponsible anti-union actions. And he's proud of it. ...

... Alex Altman of Time has more on Wisconsin's budget figures, suggesting that Walker's $137-million deficit projection may be more-or-less correct. Also, Read Paul Dirks' comment, #3.

... Chris Hayes & Naomi Klein of The Nation explain why the Wisconsin protests matter:

Frank Rich: "Republicans are adrift with a shortfall of substance, offering the president a golden chance to seize the moment."

Maureen Dowd on writers behaving badly, which some think is exascerbated by the anonymity, accessibility and speed of the Internet & other social media.

David Herszenhorn of the New York Times: "The House vote Saturday to slash more than $60 billion from the federal budget shows how powerfully the anti-spending fervor of the fall elections is driving the new Republican majority’s efforts to shrink government. It puts the two parties on a path to a succession of showdowns over the deficit and the nation’s growing debt.... The Democratic-controlled Senate has signaled that it will not consider anything approaching the scale of cuts approved by the House, setting up a standoff that each side has warned could lead to a shutdown of the federal government early next month.... Treasury Secretary Timothy F. Geithner quickly criticized the House package.... The White House had threatened to veto the bill even before it was approved."

New York Times Editors: "The Pentagon needs to jettison the ancient formula that guarantees each service its accustomed share of taxpayer dollars.... For a decade, the Army and the Marines have been pushed to their limits while the Navy and the Air Force have looked for ways to stay useful and justify their budget shares. Updating the formula to reflect a more realistic division of labor would wring significant savings from the Air Force and the Navy.... The [Congressional] Republican leadership, in particular, does not make even the pretense of fiscal responsibility when it comes to military spending."

Jonathan Weisman of the Wall Street Journal: In a "heated White House meeting..., top Senate Democrats tried to scotch efforts by Majority Whip Richard Durbin to include Social Security in comprehensive deficit-reduction negotiations, illustrating the challenge facing the bipartisan talks."

The CYA State Secrets Doctrine. Eric Lichtblau of the New York Times: Now that it appears the computer software Californian Dennis Montgomery claimed could catch terrorists was a hoax, the federal government seems to be "trying to avoid is public embarrassment over evidence that Mr. Montgomery bamboozled federal officials.... Federal officials ... are going to extraordinary lengths to ensure that his dealings with Washington stay secret.... The Justice Department ... has gotten protective orders from two federal judges keeping details of the technology out of court [and] says it is guarding state secrets...." The government has paid Montgomery $20 million. Here's the backstory in a nutshell:

A onetime biomedical technician with a penchant for gambling, Mr. Montgomery is at the center of a tale that features terrorism scares, secret White House briefings, backing from prominent Republicans, backdoor deal-making and fantastic-sounding computer technology.

... CW: what's the difference between the CIA & the Keystone Kops? Uniforms.

"Socialism with Cheerleaders." Steven Pearlstein of the Washington Post: "The National Football League is one of the most sucessful monopolies in history.... The secret to the NFL's success is its ability to maintain the legal structure of 32 supposedly independent teams while operating with most of the advantages of a single business entity.... In a very disciplined way, it has added teams, extended the length of the season and increased the number of nationally televised games each week of the season. It has been so skillful in playing one city off another that it squeezed taxpayers for $500 million a year in stadium subsidies for many years. And it has so cleverly structured the sale of television rights that networks routinely wind up overbidding...."

Jon Kosman of the New York Post: the private equity firm Bain Capital, in which Mitt Romney held a controlling interest, made a fortune by buying and "bankrupting five profitable businesses that ended up firing thousands of workers." CW: some media observers see this column as a Rupert Murdoch hit job. I have no idea.

 

CW: I don't think what Soros says to Fareed Zakaria here is particularly earthshattering, but the clip is getting a lot of attention on the Web, so I've posted it:

Local News

"My Polluted Kentucky Home." Novelist & non-fiction writer Silas House in a New York Times op-ed on the toll exacted on residents by mountaintop removal and other coal mining practices, both legal and illegal:

The coal companies, the news media and even our own government have all been complicit in valuing Appalachian lives less than those of other Americans. Otherwise, it might be harder for them to get that coal out as quickly and inexpensively as they do.

News Ledes

New York Times: "Union leaders urged Wisconsin teachers to return to work at schools that are open on Monday, but large protests were expected to continue at the Capitol against a plan to cut collective bargaining rights and benefits to state workers." ...

... Fox "News": "Gov. Scott Walker said the 14 minority Democrats who left Madison on Thursday were failing to do their jobs by 'hiding out' in another state. And Senate Majority Leader Scott Fitzgerald said his chamber would meet Tuesday to act on non-spending bills and confirm some of the governor's appointees even if the Democrats don't show up -- a scenario that should outrage their constituents." ...

... Wisconsin State Journal: "A marching, chanting crowd of 68,000 people thronged Madison’s Capitol Square on Saturday.... Supporters of Gov. Scott Walker’s plan to effectively end collective bargaining for the state’s public employees and increase their pension and health payments stood toe-to-toe and nose-to-nose with pro-union protesters.... A contingent of 120 Madison Police officers was supported by officers from the Capitol Police, State Patrol and the Dane County Sheriff’s Office. Also on the streets were deputies from sheriff’s departments from [other] counties.... There were no arrests...."

Al Jazeera: "There are reports of renewed anti-government protests in Iran, with demonstrators taking to the streets in several cities across the country. There have also been clashes between protesters and security forces, posts on social networking sites such as Facebook and Twitter said on Sunday. There were also reports of one protester being shot dead in Tehran, a story denied by government official in state media."

... New York Times: "The Obama administration on Sunday condemned Libya’s use of lethal force against peaceful demonstrators, pointing to what it said were 'multiple credible' reports that 'hundreds of people' had been killed and injured in several days of unrest. In the administration’s strongest statement on the escalating violence in Libya, the State Department said that it was 'gravely concerned' about the reports and that the number of deaths was unknown because of a lack of access to many parts of the country by news organizations and human rights groups." ...

... Guardian: "Muammar Gaddafi's son went on Libyan TV to defend his father's 41-year rule of Libya as protests spread to the capital Tripoli. The most violent scenes so far of the wave of unrest sweeping the Arab world were seen as Gaddafi relied on brute force to crush what began last week as peaceful protests but now threaten his regime." ...

... AP: "A doctor in the Libyan city of Benghazi says his hospital has seen the bodies of at least 200 protesters killed by Moammar Gadhafi's forces over the last few days. The official spoke on condition of anonymity because he fears reprisal." ...

     ... New York Times Update: "Libyan security forces opened fire once again on Benghazi residents as they attended a funeral procession for the dozens killed the day before by the same government forces."

... New York Times: "Teachers, lawyers and engineers marched into Pearl Square on Sunday, joining an emboldened opposition whose political leaders demanded that the king dissolve the government and fire his uncle, who has held the post of prime minister for 40 years, before they agree to enter into talks." ...

... Washington Post: "The White House had been working quietly for several days to undergird efforts by [Crown Prince Salman bin Hamad al-Khalifa] and a small group of other Bahraini leaders to end the crackdown and begin implementing some of the political and economic changes demanded by protesters.... The White House's efforts were complicated by deep divisions within the Bahraini government as hard-liners ... sought to quickly crush the protest movement...."

AP: "Oil from the BP spill remains stuck on the bottom of the Gulf of Mexico, according to a top scientist's [Samantha Joye] video and slides that she says demonstrate the oil isn't degrading as hoped and has decimated life on parts of the sea floor. That report is at odds with a recent report by the BP spill compensation czar that said nearly all will be well by 2012."

AP: "Jittery Chinese authorities ... staged a concerted show of force Sunday to squelch a mysterious online call for a "Jasmine Revolution" apparently modeled after pro-democracy demonstrations sweeping the Middle East. Authorities detained activists, increased the number of police on the streets, disconnected some mobile phone text messaging services and censored postings about the call to stage protests at 2 p.m. in Beijing, Shanghai and 11 other major cities."

The Commentariat -- February 19

Quote of the Day. Opposable thumbs that once symbolized our superior intelligence and separated us from the apes are now used to type gibberish on our mobile devices. -- Gemli from Boston, who is sick of Republicans (Comment #3)

Dems on the Run. Scott Bauer of the AP: "Democrats on the run in Wisconsin avoided state troopers Friday and threatened to stay in hiding for weeks, potentially paralyzing the state government in a standoff with majority Republicans over union rights for public employees." ...

... David Morgan of CBS News: State Senator Jon Erpenbach -- one of the Democratic lawmakers [who fled Wisconsin] -- told 'The Early Show on Saturday Morning' that the Republican governor's proposal 'has torn the state of Wisconsin apart.'" No video, but CBS videos are problematic anyway.

... Harold Meyerson of the Washington Post: Wisconsin Gov. Scott "Walker's proposal lets police and firefighter unions retain their collective bargaining rights and, thereby, their institutional clout, even though their taxpayer-supported pensions are among the most generous in the state. Not coincidentally, a number of police and firefighter unions supported Walker in the last election, and such unions tend to endorse more conservative candidates than, say, teachers' unions. So what Walker is really doing is going after unions that support Democrats." These unions "... also, and always, wage the biggest and most successful get-out-the-vote campaigns in minority communities -- communities that tend to vote heavily Democratic." ...

... Ezra Klein on the specifics of Gov. Walker's union-busting legislation. "... it's telling that he's exempting the unions that supported him and is trying to obscure his plan's specifics behind misleading language about what unions can still bargain for and misleading rhetoric about the state's budget." ...

... John Nichols of the Madison Capital Times on how the protests have grown to include students & people outside the public sector. ...

... Steven Greenhouse of the New York Times: "... the legislative push by Wisconsin’s new governor, Scott Walker, a Republican, to slash the collective bargaining rights of his state’s public employees could prove a watershed for public-sector unions, perhaps signaling the beginning of a decline in their power — both at the bargaining table and in politics." ...

... Michael Cooper & Katharine Seelye of the New York Times: "The unrest in Wisconsin this week over Gov. Scott Walker’s plan to cut the bargaining rights and benefits of public workers is spreading to other states."

He's basically trying to be everything to everybody. Until you look at the policies, and then it's clear he's there for the corporate sector. -- Rose Ann DeMoro, director of National Nurses United, on President Obama ...

... Peter Wallsten of the Washington Post: "Two years into a presidency that carried immense promises for the labor movement..., some unions remain firmly by [President Obama's] side, while others think he has reneged on promises or ... abandoned them altogether.... Officials from ... the International Association of Machinists and Aerospace Workers, said that tens of thousands of its members have been laid off and that they don't see the White House advocating for them. John Gage, president of the American Federation of Government Employees, said he 'resented' the president's recent calls to reorganize the government and freeze salaries.... Pointing to Obama's defense this week of Wisconsin public workers, Gage said, 'It's about time.'" ...

... Gail Collins on Big Bird, the Daytona 500 & the Fitzgerald gang of Wisconsin. Okay, she's really written a column about budgets, but as usual, she makes it more entertaining than the numbers.

... Constant Weader: Where the Hell is Hilda Solis?

Gretchen Morgenson of the New York Times has more on the decision of the DOJ to drop the criminal probe of Anthony Mozilo, a story I linked late last night & moved up to today's ledes. Morgenson writes:

The conclusion by prosecutors that Mr. Mozilo, 72, did not engage in criminal conduct while directing Countrywide will likely fuel broad concerns that few high-level executives of financial companies are being held accountable for the actions that led to the financial crisis of 2008. Hundreds of billions of dollars have been lost by investors while millions of borrowers have lost their homes. Few of the people who ran the institutions that contributed to the disaster have been found liable.

Mark Landler: of the New York Times: "... the United States government has overlooked recent complaints about human rights abuses in [Bahrain,] a kingdom that is an economic and military hub in the Persian Gulf. ... The White House [is] once again scrambling to deal with an Arab ally facing a tide of popular discontent. ... In cables made public by WikiLeaks, the Bush and Obama administrations repeatedly characterized Bahrain as more open and reform-minded than its neighbors, and pushed back when human rights groups criticized the government. ...

... Nicholas Kristof: "America finds itself in a tough position, and that probably explains President Obama’s very cautious statement saying that he is 'deeply concerned.' ... We should signal more clearly that we align ourselves with the 21st-century aspirations for freedom of Bahrainis rather than the brutality of their medieval monarch. I’m not just deeply 'concerned' by what I’ve seen here. I’m outraged."

This is horrifying audio of ABC News correspondent Miguel Marquez being beaten in Pearl Square in Manama, Bahrain early yesterday morning.

... See also yesterday's Commentariat for video of New York Times reporter Michael Slackman & videographer Sean Patrick Farrell being shot at from a helicopter. Remember, these shooters & thugs are our "friends."

Richard Fausset of the Los Angeles Times: "In 1961, Montgomery, Ala., went all out for the centennial of the swearing-in of Confederate President Jefferson Davis. The 150th anniversary this year is generating far less interest." BUT STILL. "On Saturday, [at] the 150th anniversary event ... hundreds of men are expected to march through the heart of Montgomery. Some will parade in Confederate gray. Some will display the controversial battle flag. On the steps of the white-domed state Capitol, an ersatz Davis will place his hand on a Bible. And a band will play 'Dixie.' But so far, this year's festivities are generating scant buy-in from city and state officials, and relatively little buzz among locals."

News Ledes

New York Times: "As Afghan soldiers and police officers lined up on Saturday to get their monthly salaries at a bank in downtown Jalalabad, they became targets for seven heavily armed attackers in Army uniforms who had joined them, Afghan officials said. In a chaotic scene, the attackers, all wearing explosive vests, started a gun battle, and several rushed into the bank, starting a siege there. The fighting ended three hours later, leaving 18 people dead and about 70 wounded...."

AP: "A prominent opposition leader says the withdrawal of army tanks from Bahrain's capital is not enough to open talks with rulers in the crisis-wracked Gulf nation. Ibrahim Sharif, head of the Waad Society, is demanding guarantees that protesters can stage rallies without fear of being attacked.... The pullback of tanks from the landmark Pearl Square on Saturday comes a day after army units opened fire on marchers streaming toward the site, which had been the symbolic center of their uprising against Bahrain's leaders." ...

     ... New York Times Update: "Thousands of jubilant protesters surged back into the symbolic heart of Bahrain on Saturday after government security forces withdrew and the monarchy called for peace after two days of violent crackdowns." ...

... AP: "Libyans set up neighborhood patrols in the shaken eastern city of Benghazi on Saturday as police disappeared from the streets following an attack by government forces on a two-day-old encampment of protesters demanding an end to Moammar Gadhafi's regime, eyewitnesses said. The situation in the North African nation has become increasingly chaotic, with a human rights group estimating 84 people have died in a harsh crackdown on anti-Gadhafi demonstrations and the U.S.-based Arbor Networks security company saying Internet service was cut off around 2 a.m. Saturday...." ...

     Guardian Update: "Colonel Muammar Gaddafi is confronting the most serious challenge to his 42-year rule as leader of Libya by unleashing his army on unarmed protesters. Unlike the rulers of neighbouring Egypt, Gaddafi has refused to countenance the politics of disobedience, despite growing international condemnation, and the death toll of demonstrators nearing 100."

... Reuters: "Algerian police in riot gear on Saturday surrounded about 500 protesters trying to stage a march through the capital [city of Algiers] inspired by uprisings in other parts of the Arab world in defiance of a ban. A Reuters reporter at the scene said a group chanting 'Algeria -- free and democratic!' tried to reach May 1 Square in the city center to begin the protest march but were driven two blocks away by police using batons."

Reuters: "The Republican-controlled House of Representatives voted on Friday to choke off cash to fund President Barack Obama's healthcare reform law, intensifying a fight with Democrats over budget cuts and deficits." ...

... ABC News: "The House of Representatives Friday passed a measure to end federal funding for abortion provider Planned Parenthood....  Friday afternoon, the House passed the amendment by a vote of 240-185. The vote was generally along party lines, with all but seven Republicans voting for the cut, and 10 Democrats voting in favor. One Republican voted present." ...

... New York Times: "Democrats late Friday night proposed a temporary extension of the stopgap measure now financing the government that would maintain expenditures generally at 2010 levels through March 31 and avert a federal shutdown. The current stopgap measure expires on March 4.... The temporary extension was proposed by ... Nancy Pelosi.... Democrats, however, do not have the votes to approve it without Republican support."

New York Times: "The [U.S.] Treasury Department imposed sanctions on Friday against one of the largest money exchange houses in Afghanistan, [the New Ansari Money Exchange",] along with 15 of its executives, on charges that it used billions of dollars transferred in and out of the country to help hide proceeds from illegal drug sales.... With these actions, the United States has seized any assets New Ansari and its managers hold in the United States. American banks and businesses are prohibited from transactions with those named in the order."

New York Times: "The Obama administration on Friday rescinded most of a 2008 rule that granted sweeping protections to health care providers who opposed abortion, sterilization and other medical procedures on religious or moral grounds. Kathleen Sebelius, the secretary of health and human services, said the rule, issued in the last days of the Bush administration, could 'negatively impact patient access to contraception and certain other medical services.'”

Surprise! DOJ Lets Another Bankster Off the Hook. New York Times: "Federal prosecutors have ended a criminal investigation of Angelo R. Mozilo, the former chief executive of the mortgage lender Countrywide Financial, without taking any action against him, according to a person with direct knowledge of the investigation who spoke only on the condition of anonymity."