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Jay Hallen, a 24-year old Yale graduate, is bored with his job at a real-estate firm. He is fascinated with the Middle East, and has taken some Arabic classes and read some history books about the region. He contacts Reuben Jeffrey, an adviser to CPA head L. Paul Bremer whom Hallen had met in 2002 when trying to land a job at the White House, and asks if there is a job for him in Baghdad.
'I Don't Have a Finance Background' - Three weeks later, Hallen is in Baghdad, and meets with Thomas Foley, the CPA official in charge of privatizing Iraq’s state-owned enterprises. Foley, a former classmate of President Bush and a major Republican donor, says he is putting Hallen in charge of Baghdad’s stock exchange. Hallen is shocked. “Are you sure?” Hallen asks. “I don’t have a finance background.” No problem, Foley responds. He will be the project manager; his subordinates will do the actual work. Before the invasion, Baghdad’s stock exchange was primitive by American standards; author Rajiv Chandrasekaran will describe it as loud, boisterous, and, despite all appearances, quite functional. After the invasion it was looted to the bare walls and ignored by the first wave of US economic reconstruction specialists. But Iraqi brokers and businessmen want it reopened, so the CPA acquiesces.
Revamping the Exchange - Hallen launches an ambitious, if almost entirely ignorant, plan to modernize and upgrade the stock exchange to make it the most technologically sophisticated exchange in the Arab world. He also wants to implement a new securities law that would make the exchange independent of the Finance Ministry. The Iraqi brokers and businessmen who clamored for the exchange to reopen are horrified at Hallen’s plans. “People are broke and bewildered,” broker Talib Tabatabai—a graduate of Florida State’s business department—tells Hallen. “Why do you want to create enemies? Let us open the way we were.” Tabatabai, like other brokers, believes Hallen’s plan is ludicrously grandiose. “It was something so fancy, so great, that it couldn’t be accomplished,” he will later recall. But Hallen is unmoved.
Hallen's View - “Their laws and regulations were completely out of step with the modern world,” Hallen will later say. “There was just no transparency in anything. It was more of a place for Saddam and his friends to buy up private companies that they otherwise didn’t have a stake in.” To just reopen the exchange the way it was, Hallen will insist, “would have been irresponsible and short-sighted.” Hallen recruits a team of American volunteers, most with no more experience or knowledge of finance than he has, to rewrite the securities laws, train the brokers, and purchase the necessary computers. By the spring of 2004, CPA head Bremer approves the new laws and appoints nine Iraqis hand-picked by Hallen to become the exchange’s board of governors.
No CPA Role - The new exchange board names Tabatabai as its chairman. The new laws have no place for a CPA adviser as a decision-maker; immediately a conflict between Hallen and the board arises. Hallen wants to wait several more months for the new computer system to arrive and be installed; unwilling to wait, Tabatabai and the board members buy dozens of dry-erase boards for the exchange floor, and two days after Hallen’s tour ends, the exchange is open for business. Without CPA oversight, the exchange quickly begins functioning more or less as it did before the invasion. When asked what would have happened had Hallen not been assigned to reopen the exchange, Tabatabai will answer: “We would have opened months earlier. He had grand ideas, but those ideas did not materialize.… Those CPA people reminded me of Lawrence of Arabia.” [Washington Post, 9/17/2006]
Author Rajiv Chandrasekaran, holding a copy of his 2006 book, ‘Imperial Life in the Emerald City.’ [Source: Daylife (.com)]Americans who want to work for the Coalition Provisional Authority (CPA) in the so-called “Green Zone,” the fenced-off area of Baghdad also called “Little America” and the hub of US governmental and corporate activities, are routed through Jim O’Beirne, a political functionary in the Pentagon whose wife is prominent conservative columnist Kate O’Beirne.
Focus on Ideology, Not Experience or Expertise - O’Beirne is less interested in an applicant’s expertise in Middle Eastern affairs or in post-conflict resolution than he is in an applicant’s loyalty to the Bush administration. Some of the questions asked by his staff to applicants: Did you vote for George W. Bush in 2000? Do you support the way the president is fighting the war on terror? According to author Rajiv Chandrasekaran, two applicants were even grilled about their views on abortion and Roe v. Wade (see January 22, 1973). While such questions about political beliefs are technically illegal, O’Beirne uses an obscure provision in federal law to hire most staffers as “temporary political appointees,” thus allowing him and his staff to skirt employment regulations that prohibit such questioning. The few Democrats who are hired are Foreign Service employees or active-duty soldiers, and thus protected from being questioned about their politics.
Unskilled Applicants - The applicants chosen by O’Beirne and his staff often lack the most fundamental skills and experience. The applicant chosen to reopen Baghdad’s stock exchange is a 24-year old with no experience in finance, but who had submitted an impressively loyalist White House job application (see April 2003 and After). The person brought in to revamp Iraq’s health care system is chosen for his work with a faith-based relief agency (see April 2003 and After). The man chosen to retool Iraq’s police forces is a “hero of 9/11” who completely ignores his main task in favor of taking part in midnight raids on supposed criminal hangouts in and around Baghdad (see May 2003 - July 2003). And the manager of Iraq’s $13 billion budget is the daughter of a prominent neoconservative commentator who has no accounting experience, but graduated from a favored evangelical university for home-schooled children.
Selection Process - O’Beirne seeks resumes from the offices of Republican congressmen, conservative think tanks, and Republican activists. He thoroughly weeds out resumes from anyone he deems ideologically suspect, even if those applicants speak Arabic or Farsi, or possess useful postwar rebuilding experience. Frederick Smith, currently the deputy director of the CPA, will later recall O’Beirne pointing to one young man’s resume and pronouncing him “an ideal candidate.” The applicant’s only real qualification is his job working for the Republican Party in Florida during the 2000 presidential recount.
Comment by Employee - A CPA employee writes a friend about the recruitment process: “I watched resumes of immensely talented individuals who had sought out CPA to help the country thrown in the trash because their adherence to ‘the president’s vision for Iraq’ (a frequently heard phrase at CPA) was ‘uncertain.’ I saw senior civil servants from agencies like Treasury, Energy… and Commerce denied advisory positions in Baghdad that were instead handed to prominent RNC (Republican National Committee) contributors.”
Result: Little Reconstruction, Billions Wasted or Disappeared - In 2006, Chandrasekaran will write: “The decision to send the loyal and the willing instead of the best and the brightest is now regarded by many people involved in the 3 1/2-year effort to stabilize and rebuild Iraq as one of the Bush administration’s gravest errors. Many of those selected because of their political fidelity spent their time trying to impose a conservative agenda on the postwar occupation, which sidetracked more important reconstruction efforts and squandered goodwill among the Iraqi people, according to many people who participated in the reconstruction effort.” Smith will later say: “We didn’t tap—and it should have started from the White House on down—just didn’t tap the right people to do this job. It was a tough, tough job. Instead we got people who went out there because of their political leanings.” The conservative ideologues in the CPA will squander much of the $18 billion in US taxpayer dollars allocated for reconstruction, some on pet projects that suit their conservative agenda but do nothing for Iraqi society, and some never to be traced at all. “Many of the basic tasks Americans struggle to accomplish today in Iraq—training the army, vetting the police, increasing electricity generation—could have been performed far more effectively in 2003 by the CPA,” Chandrasekaran will write.
Projects - Instead of helping rebuild Iraq—and perhaps heading off the incipient insurgency—CPA ideologues will spend billions on, among other things, rewriting Iraqi tax law to incorporate the so-called “flat tax,” selling off billions of dollars’ worth of government assets, terminating food ration distribution, and other programs.
Life in Green Zone - Most spend almost all of their time “cloistered” in the Green Zone, never interacting with real Iraqi society, where they create what Chandrasekaran later calls “a campaign war room” environment. “Bush-Cheney 2004” stickers, T-shirts, and office desk furnishings are prominently displayed. “I’m not here for the Iraqis,” one staffer tells a reporter. “I’m here for George Bush.” Gordon Robison, then an employee in the Strategic Communications office, will later recall opening a package from his mother containing a book by liberal economist Paul Krugman. The reaction among his colleagues is striking. “It was like I had just unwrapped a radioactive brick,” he will recall. [Washington Post, 9/17/2006]
The World Bank and the International Monetary Fund announce that they will send their economists to Iraq to assess needs for reconstruction as soon as it is safe to do so. The decision was made “with strong pressure from the United States,” the New York Times reports. [New York Times, 4/14/2004]
During this period, the Coalition Provisional Authority purchases concrete blast walls from foreign companies for as much as $1,000 a piece. There are seventeen state-owned cement companies in Iraq that could have produced the walls for around $100 each. None of these businesses are contracted by the CPA to build the walls, or participate in any other projects. Minister of Industry Mohamad Tofiq later says the US refused to work with Iraq’s cement companies because “no one believes in the public sector.” However, Tofiq notes, there were several offers from US companies to purchase the state-owned firms during this period. According to journalist Naomi Klein, the CPA’s refusal to work with the cement companies supports the theory that the CPA was engaged in “a deliberate strategy to neglect the state firms so that they can be sold more cheaply—a practice known as ‘starve then sell.’” [Harper's, 9/24/2004]
Senator Norm Coleman, chairman of the Foreign Relations Western Hemisphere subcommittee, holds a hearing in which he says that a “tough response” against Mexico would be “warranted” for “unilateral renegotiation of NAFTA.” Present at the hearing are Bush administration officials and leaders of agribusiness interest groups. Jim Quackenbush, board member of the National Pork Producers Council, complains of a Mexican anti-dumping case against US hog exports and claims his goods are often halted at the border for “alleged sanitary concerns.” He calls for the US to “use all available means” to keep Mexico’s market open to US agricultural goods. Allen Johnson, chief agriculture negotiator in the office of the US Trade Representative, says that the US will work to defend its interests and is ready to retaliate if Mexico does not accede to its demands. [US Congress, 5/20/2003 ; Star Tribune, 5/21/2003]
Within months of the invasion of Iraq, the International Tax and Investment Centre, a Washington-based lobby group for the oil industry, solicits financial contributions from oil companies, including BP and Shell, for a special “Iraq project.” [Observer, 3/4/2007]
Paul Bremer releases a statement saying that the Coalition Provisional Authority will begin making monthly payments to former members of the Iraqi military in order to pacify them (see June 23, 2003). According to Walter Slocomb, the payments will range from $50 to $150, and up to 250,000 former soldiers may be eligible to receive them. Conscripts, on the other hand, will be sent home with a single severance payment. [Christian Science Monitor, 6/24/2003]
Time reporter Matthew Cooper publishes a brief article on the Bush administration’s attempts to reform the US welfare program. The article is in part sourced to information obtained by Cooper from White House political strategist Karl Rove, in the same conversation where Rove outed CIA official Valerie Plame Wilson (see 11:00 a.m. July 11, 2003). [Time, 9/15/2003]
The Coalition Provisional Authority provides US Congress with a justification for a request of $20.3 billion for reconstruction projects in Iraq. The report—which leaves many questions unanswered—describes 115 projects. Less than 25 of them mention employing Iraqis or using Iraqi resources. [US Congress, 9/30/2003, pp. 2, 4-5 ]
At the annual World Bank/IMF meeting in Dubai, Iraq’s nominal finance minister Kamel al-Gailani announces Bremer’s shock therapy program of economic reforms. The announcement comes two days after Bremer signed a number of orders opening up Iraq’s economy to foreign investment (see September 19, 2003, September 19, 2003, and September 19, 2003). Collectively, the orders allow foreign investors to acquire 100 percent ownership of Iraqi assets in any sector except oil production and refining, give foreign investors equal legal standing with local firms, and allow them to repatriate all profits made in Iraq without any requirements for local re-investment. The laws also cap income and corporate taxes at 15 percent and slash tariffs down to 5 percent, with the exception of tariffs on food, drugs, books, and other humanitarian imports, which can be imported duty-free. Al-Gailani says these “measures will be implemented in the near future and represent important steps in advancing Iraq’s reconstruction effort.” As an article in Economist magazine will note, the changes, which “bear the signature of Paul Bremer… and the imprimatur of the American consultants it has hired to frame economic policies,” represent “a radical departure for Iraq.” The article—titled “Let’s all go to the yard sale”—calls these reforms “the kind of wish-list that foreign investors and donor agencies dream of for developing markets.” The caption of an image accompanying the article reads, “If it all works out, Iraq will be a capitalist’s dream.” But the magazine also acknowledges that there will be resistance to these reforms. “Given the shock and awe expressed by many Baghdad businessmen at the scale of the changes, it is not clear that such a future regime would be able to resist pressures to reimpose protectionism.” It also predicts that the rapid overlay of this legal framework over Iraq’s existing economic system will create disparities. “The instant discarding of 40 years of national-socialist commercial culture is likely to create serious distortions,” the magazine says. [New York Times, 9/21/2003; Daily Telegraph, 9/22/2003; Economist, 9/27/2003]
As part of a White House media campaign to promote “good news” from Iraq (see Mid-October 2003), Commerce Secretary Donald Evans goes on a brief visit to selected areas in Baghdad and comes back to Washington with stories of the “thousands” of new businesses that have cropped up since the “liberation” of that country. Asked for an example, Evans cites two boys’ roadside soft drink stand. [Associated Press, 10/17/2003]
The International Advisory and Monitoring Board for Iraq (IAMB), an independent agency formed to oversee the Development Fund for Iraq (DFI) and Iraq’s oil exports, notes in briefings to the CPA that the production of crude oil is going unmetered. It will later say in a report that such practices could result in the diversion of Iraq’s oil resources. It recommends that the CPA properly install metering equipment as soon as possible. [International Advisory and Monitoring Board for Iraq, 12/2004, pp. 2, 4 ]
Joseph Stiglitz, Nobel laureate and former chief economist at the World Bank, warns in an op-ed piece that US plans to submit Iraq’s economy to shock therapy—i.e., the rapid implementation of market reforms such as privatization and deregulation—will fail in Iraq. He advises the international community to “direct its money to humanitarian causes, such as hospitals and schools, rather than backing American designs.” He writes: “When the Berlin Wall fell, the countries of Eastern Europe and the former Soviet Union began transitions to a market economy, with heated debates over how this should be accomplished. One choice was shock therapy… while the other was gradual market liberalization to allow for the rule of law to be established at the same time. Today, there is a broad consensus that shock therapy, at least at the level of microeconomic reforms, failed, and that countries (Hungary, Poland, and Slovenia) that took the gradualist approach to privatization and the reconstruction of institutional infrastructure managed their transitions far better than those that tried to leapfrog into a laissez-faire economy…. But the Bush administration, backed by a few handpicked Iraqis, is pushing Iraq towards an even more radical form of shock therapy than was pursued in the former Soviet world. Indeed, shock therapy’s advocates argue that its failures were due not to excessive speed—too much shock and not enough therapy—but to insufficient shock.” But it won’t work, he says, because instability will deter investment and those who do purchase state assets “may then be reluctant to invest in them; instead, as happened elsewhere, their efforts may be directed more at asset stripping than at wealth creation.” He adds that providing Iraq with loans will only exacerbate the country’s difficulties. He concludes: “America’s economic program for reconstructing Iraq is laying the foundations for poverty and chaos.” [ZNet, 3/17/2004]
Jay Garner. [Source: Representational Pictures]The US’s first administrator of post-invasion Iraq, Jay Garner, tells BBC reporter Greg Palast that he was replaced by Paul Bremer because of his insistence on early elections and resistance to the Bush administration’s plan to impose a free market system on Iraq. Garner says he felt it would have been wrong to impose a new economic system on the Iraqi people before they could elect a representative government. [Guardian, 3/18/2003]
Britain’s Foreign and Commonwealth Office issues a “code of practice” arguing that Iraq will need to work with foreign oil companies to increase the daily production level of the oil industry. “It has been estimated that a minimum of US$ 4 billion would be needed to restore production to its 1990 levels of 3.5 million barrels per day (mbd), and perhaps US$ 25 billion to achieve 5 mbd,” the statement says. “… Given Iraq’s needs, it is not realistic to cut government spending in other areas, and Iraq would need to engage with the International Oil Companies (IOCs) to provide appropriate levels of Foreign Direct Investment (FDI) to do this.” [Muttitt, 2005]
In spite of the CPA’s stated intention to employ at least 50,000 Iraqis on reconstruction projects, the real number of Iraqis working to rebuild Iraq is only 15,000. This is less than a third of the CPA’s goal and less than a quarter percent of Iraq’s estimated workforce of 7 million. [Ozlu, 4/21/2006, pp. 25 ]
The Nuclear Regulatory Commission (NRC) announces that it will no longer inform the public as to which nuclear energy plants have passed, or failed, security tests. The NRC claims the new restrictions are to keep potentially harmful information out of terrorist hands (see Between July 9 and July 16, 2001); critics argue the policy prevents the public from pressuring corporate executives to keep their plants safe (see Late July, 2003). Soon afterward, the NRC will move to withdraw large amounts of unclassified information, previously available to the public, from public view. Agency spokeswoman Sue Gagner will say that the move is to ensure that “information that could be helpful to a terrorist” is not available, but the upshot of both decisions is that only officials employed by the nuclear industry can discuss regulatory and security changes—public citizens and watchdog organizations no longer have the information required to pursue such issues. [Savage, 2007, pp. 103]
ACORN (the Association of Community Organizations for Reform Now) launches a campaign to register thousands of new voters in Florida, using a referendum that would raise the state’s minimum wage as a method to drum up support. One study shows that the referendum, if enacted, would raise salaries among the working poor by $443 million. A coalition driven by ACORN registers some 210,000 new voters, mostly in urban areas, before Election Day. Opponents of the referendum—mostly business leaders and Florida Republicans—fight back by mounting an ad campaign comparing the effect of the raised minimum wage to the devastation wrought by Florida’s recent hurricanes, and labeling it a “job killer.” They also level accusations of voter fraud, accusing the coalition of filing thousands of fraudulent registrations. National and state Democrats are hesitant to embrace the referendum, even though some polls show that as many as 81 percent of Floridians support it. Presidential candidate John Kerry (D-MA) rarely mentions the referendum during his campaign swings through the state. Although Kerry loses Florida and Republicans win a majority of the Congressional elections, the referendum wins in a landslide, garnering 77 percent of the votes cast and winning in every county, including the conservative counties in the Panhandle. In 2010, author John Atlas will write, “Kerry made the fatal mistake of not publicly embracing the minimum wage ballot.” [Atlas, 2010, pp. 112-114]
The White House prepares to launch a huge PR campaign to win public support for sweeping changes to Social Security, including the creation of individual accounts with the option to invest (and win or lose) in the stock market, and partial privatization of the management of social security investments. In 2008, current White House press secretary Scott McClellan will write: “It was the kind of bold domestic initiative Bush had always hoped would define his presidency. He would get it passed through a massive [public relations] campaign to bring public pressure to bear on Congress.” The first major strategy meeting to develop the White House PR campaign centers on two main foci:
“Educating” the public about the economic and fiscal problems facing Social Security, the need to fix them, and creating a “crisis mentality” among the public, which, McClellan will write, “would give us a better shot at getting the necessary public support to bring about bipartisan backing for our reform plan in Congress”;
Shaping the solution and ensuring that “personal retirement accounts,” as the stock accounts will be termed, are included.
The White House’s congressional liaison, David Hobbs, says: “Seventy percent of the battle is defining the problem and putting Congressional leaders on the spot. We need public pressure.” The plan is for Bush to travel around the country touting the program, specifically visiting states and districts represented by targeted members of Congress. “Bush would use the re-election hopes of those crucial swing votes in Congress as the lever with which to apply the pressure required,” McClellan later writes. McClellan will reflect that, though the marketing campaign is well thought out, the reform plan isn’t, writing: “We were spending excessive effort on selling our sketchily designed plan while skimping on other elements of the process that probably should have been at least as important. We weren’t spending much time deliberating with members of Congress to work out details of our reform plan—we were doing minimal outreach to Democrats to build the kind of consensus that would make such a dramatic change easier to pass. Instead, we were leapfrogging many of the vital steps and jumping straight to the stage in the process we found most congenial—the public relations effort.” McClellan will compare the Social Security campaign to the administration’s efforts to market the Iraq invasion, calling it “reminiscent of the way we’d short-circuited debate over the necessity for war in Iraq and chose instead to turn it into the subject of a massive marketing blitz. We used a similar approach as we planned the Social Security campaign. With Iraq, it was a threat that needed confronting, with Social Security, it was a crisis that needed solving.” [McClellan, 2008, pp. 248-249]
At a conference with oil companies in Beirut, the British ambassador in Baghdad gives the Iraqi finance minister a report (see Autumn 2004) authored by the International Tax and Investment Centre, a Washington-based oil industry lobby. The report, which contains recommendations for a new Iraqi oil policy, expresses the view that Iraq’s relationships with oil companies should be governed through the use of production sharing agreements (PSAs). [Observer, 3/4/2007]
Fox News senior anchor Brit Hume and Fox analyst William Bennett both make the false claim that former President Franklin D. Roosevelt wanted to replace Social Security with private accounts. In fact, Roosevelt, who implemented Social Security, was in favor of “voluntary contributory annunities” to supplement Social Security benefits, but never proposed replacing Social Security with private money. Hume and Bennett both support President Bush’s plan to partially “privatize” Social Security; Bush himself has asserted, equally falsely, that Roosevelt supported privatization. On Fox’s political talk show Hannity and Colmes, Bennett tells viewers: “Franklin Delano Roosevelt, the guy who established Social Security, said that it would be good to have it replaced by private investment over time. Private investment would be the way to really carry this thing through.” That same evening, Hume tells his audience: “In a written statement to Congress in 1935, Roosevelt said that any Social Security plans should include, quote, ‘Voluntary contributory annuities, by which individual initiative can increase the annual amounts received in old age,’ adding that government funding, quote, ‘ought to ultimately be supplanted by self-supporting annuity plans.’” Hume fails to point out that Roosevelt was not talking about “supplant[ing]” Social Security with any “self-supporting annuity plans,” but instead was talking about a different fund that provided pension benefits to Americans too old (in 1935) to contribute payroll taxes to Social Security. In 1935, Edwin Witte, the director of the Committee on Economic Security, told Congress flatly that voluntary accounts were intended as a “separate undertaking” meant to “supplement” the compulsory system, not replace it. [Media Matters, 2/4/2005] Days before the Fox broadcasts, Roosevelt’s grandson James Roosevelt Jr., a former Social Security associate commissioner, noted that “Bush invoked the name of my grandfather… as part of his campaign to privatize Social Security,” and added, “The implication that FDR would support privatization of America’s greatest national program is an attempt to deceive the American people and an outrage.” [Boston Globe, 1/31/2005] Liberal pundit Al Franken calls on Hume to resign over his historical distortions; MSNBC host Keith Olbermann calls Hume’s statements “premeditated, historical fraud,” and Roosevelt Jr. says that “outrageous distortion… calls for a retraction, an apology, maybe even a resignation.” [Media Matters, 2/18/2005] Influential conservative blogger Glenn Reynolds will acknowledge that Roosevelt was not advocating for the privatization of Social Security, instead noting that Roosevelt’s plan “would have involved, essentially, a sort of government-supplied 401k plan.” [Glenn Reynolds, 2/4/2005]
President Bush, on a tour to promote his administration’s proposals to privatize Social Security, tells an audience in Greece, New York, “See, in my line of work you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda.” [White House, 5/24/2005] Washington Post reporter Dan Froomkin calls the line “a revealing ad-lib.” [Washington Post, 5/25/2005] Author and media critic Frank Rich later notes that “catapulting the propaganda” does not have the desired effect in this instance: “Support for his plan actually declined as his tour played out, and it was dead on arrival in a Congress his party controlled.” [Rich, 2006, pp. 197]
Congress passes the Energy Policy Act (EPA) of 2005. The EPA is the product of the secret Cheney energy task force (see January 29, 2001 and May 16, 2001). The act provides $14.5 billion in tax breaks for corporate energy providers, primarily oil, coal, and nuclear power companies. It contains an array of odd and obscure provisions helping industrialists, many generated by the lobbyists and corporate executives who helped craft the bill (see May 10, 2005). It does nothing to discourage consumption by raising fuel efficiency standards, and does little to address the sharply rising price of oil. What it does, primarily, is give huge financial and regulatory breaks to the energy industry. [Savage, 2007, pp. 360]
The UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions is adopted at the 33rd UNESCO General Conference held in Paris, France. It is the first major international convention to be adopted that reaffirms the sovereign right of states to formulate and implement cultural policies. The convention’s approval is seen as a challenge to the legitimacy of the global regime of bilateral, regional and multilateral free trade agreements revolving around the World Trade Organization (WTO), in particular regarding international trade in cultural goods and services and the related cultural policies effected by governments. The approval of this international instrument is seen as a major culmination of years-long efforts led by Canada and the European Union, specifically France, to arrest liberalization commitments in various free trade agreements that tend to strengthen Hollywood’s overwhelming advantage in the global film, music, publishing, advertising, and other cultural industries. The convention is overwhelmingly approved despite a strong counter-lobby by the United States. A hundred and forty-eight vote in the convention’s favor, four countries (Australia, Honduras, Liberia, and Nicaragua) abstain, and only two countries—the United States and Israel—vote against its approval. [Coalition Currents, 10/2005]
Through a unanimous all-party vote at its National Assembly, Quebec becomes the first government worldwide to approve the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions. The approval comes just three weeks after the landslide vote for the international convention at the UNESCO 33rd General Conference in Paris, France. The day’s favorable vote on the convention is marked as well by statements by leading officials of Quebec noting Quebec’s prime role in the formation of the UNESCO instrument, as well as how the convention boosts Quebec’s efforts to protect and promote its cultural industries. Deputy Premier and Minister of International Relations Monique Gagnon-Tremblay emphasizes Quebec’s important contribution to the “emergence of an international instrument of fundamental importance for the cultural sector, and over and beyond this, for the socio-economic development of all our peoples at the beginning of the 21st century.” Culture and Communications Minister Line Beauchamp ends her own statements by calling the adoption of the convention “a great day for Quebec culture,” adding: ”(T)he fundamental issue is the commitment of states to support their cultures through cultural policies that take the form of subsidies, tax credits, of regulatory policies.… We should be aware to what degree everyday life is shaped and affected by culture and artistic creations.… It is important to realize that the cultural policies I just described are behind the songs you hear on the radio, the television programs you watch, the books you read, your encounters with culture.” For his part, Claude Béchard, minister of economic development, innovation, and exports, stresses the convention “will serve as a tool of reference for states facing pressure to liberalize their cultural sectors by helping to legitimize at the international level their cultural policies.” Premier Jean Charest, meantime, highlights the close cooperation between Quebec and the federal government of Canada in building international support for the convention. Charest indicates again his government is determined to continue championing the convention internationally, and to continue supporting Canada’s Coalition for Cultural Diversity and Quebec’s leading cultural organizations in their work to mobilize cultural professionals around the world to support ratification. [Coalition Update, 11/2005]
Canada becomes the first country to ratify the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions. Canada’s November 22 ratification comes just 33 days after the international instrument was adopted at the 33rd UNESCO General Conference in Paris, France. The prompt ratification meets a previous public commitment made by Minister of Canadian Heritage Liza Frulla, shortly after the November 22 adoption at the UNESCO Conference, that Canada would be the first to ratify the convention “ideally before Christmas [of 2005].” Frulla recalls at the signing ceremonies in Montreal on November 23, “some people gave me a very skeptical look [after I made that pronouncement], and thought I was dreaming in Technicolor.” But she points out that her resolve to make good the ratification commitment was matched by that of Canadian Prime Minister Paul Martin, who Frulla says “has always been a strong defender and promoter of this convention.” Frulla relates further: “[A]s soon as I got back, we triggered the process so that Canada could be in a position to ratify this convention.… And today we can say mission accomplished. Clearly, this is a great day for our artists, our culture, our cultural industries, and for our country.” Frulla, Martin, Quebec Minister of Culture and Communications Line Beauchamp, and Scott McIntyre and Pierre Curzi, co-chairs of Canada’s Coalition for Cultural Diversity, offer congratulations to each other at the Montreal ceremonies for the convention’s quick ratification in record time. [Coalition Update, 11/2005]
The Iraqi government cuts subsidies on gasoline, diesel, kerosene, and cooking fuel in order to meet an IMF requirement that Iraq allow fuel prices to increase to levels on par with prices elsewhere in the Middle East. The Iraq government agreed to implement this reform, and a number of others, in exchange for having as much as 80 percent of its debts forgiven (see September 29, 2004 and November 22, 2004). The debts had accumulated during the rule of Saddam Hussein. Iraq’s rolling back of the fuel subsidies is followed by violent protests across the country. The price of cooking fuel immediately increases by about three-fold, while gasoline prices increase by a factor of five. Diesel fuel prices rise about nine-fold. [Associated Press, 12/19/2005; BBC, 12/30/2005; New York Times, 12/31/2005]
Adnan Rasha al-Mufti, president of the Kurdistan National Assembly of Iraq, signs a new investment law into effect with the aim of “promoting investment” and “removing legal obstacles” to investing in the Kurdistan region of Iraq. The law seeks to create an investment climate that gives equal treatment to foreign and national investors. Among other reforms, the legislation creates new tax exemptions and establishes greater protection of property rights. [Kurdistan National Assembly, 7/4/2006]
Libertarian Representative Ron Paul (R-TX), contemplating a run for the 2008 presidential nomination, discusses the many federal programs, agencies, and bureaus he would eliminate if he had the power. He would do away with the CIA, the Federal Reserve, the Food and Drug Administration (FDA), the IRS, and the Department of Education, among others. He would eliminate Social Security, Medicare, and Medicaid. He would abolish the federal income tax (see April 28, 1999). He would zero out federal funding for public education, leaving that to local governments. Paul recently refused to vote for federal funds to aid victims of Hurricane Katrina, explaining that to do so would “rob” other Americans “in order to support the people on the coast.” He routinely votes against federal subsidies for farmers. He supports absolute gun rights, and absolutely opposes abortion, though he thinks regulations supporting or denying abortion should be left up to the states. He wants to repeal federal laws regulating drugs and allow prohibited drugs such as heroin to be sold legally. Paul says the US should withdraw from the United Nations and NATO, and wants the country to stop giving foreign aid to any country for any reason, calling such assistance “foreign welfare.” He even says President Lincoln should never have taken the nation to war to abolish slavery. Referring to the years before the income tax, Paul says: “We had a good run from 1776 to 1913. We didn’t have it; we did pretty well.” As for Social Security, “we didn’t have it until 1935,” Paul says. “I mean, do you read stories about how many people were laying in the streets and dying and didn’t have medical treatment?… Prices were low and the country was productive and families took care of themselves and churches built hospitals and there was no starvation.” Historian Michael Katz describes himself as aghast at Paul’s characterization of American life before Social Security. “Where to begin with this one?” he asks. “The stories just break your heart, the kind of suffering that people endured.… Stories of families that had literally no cash and had to kind of beg to get the most minimal forms of food, who lived in tiny, little rooms that were ill-heated and ill-ventilated, who were sick all the time, who had meager clothing.” Charles Kuffner of the Texas progressive blog Off the Kuff writes, “I can only presume that the Great Depression never occurred in whatever universe Paul inhabits.” [Washington Post, 7/9/2006; Charles Kuffner, 7/10/2006]
Entity Tags: United Nations, US Food and Drug Administration, North Atlantic Treaty Organization, Ron Paul, US Department of Education, US Federal Reserve, Charles Kuffner, Central Intelligence Agency, Internal Revenue Service, Michael Katz
Timeline Tags: Global Economic Crises, Domestic Propaganda, 2008 Elections
The Iraq Study Group, working to finalize its long-awaited report (see December 2006), works all of its connections to the White House to ensure that the report receives a fair hearing. No one in the study group anticipates their report will receive a warm reception from the White House. Co-chairman James Baker is playing on both his ties with the president’s father and on the fact that he secured the 2000 election victory for President Bush. “Here you have Baker coming back trying to pull the president’s chestnuts out of the fire,” a former State Department official later observes. “Not only did he help Bush out in Florida, but now he is doing the Baker-Hamilton commission. He and [Brent] Scowcroft were talking relentlessly during the policy formulation of the Iraq Study Group report. Baker was keeping the president informed the whole time. He is trying to throw him a lifeline and give him an exit.” Scowcroft, another close ally of the elder Bush, is working with his former protege, Secretary of State Condoleezza Rice, to try to gain Bush’s attention. Rice indicates that she will help; unfortunately, she is not sincere in her assurances, as she never intervenes on Scowcroft’s behalf. [Unger, 2007, pp. 342-343]
Oxfam publishes a report concluding that poor people in developing nations are dying needlessly because drug companies and the governments of certain wealthy nations are putting a higher priority on defending intellectual property rights than protecting human life. According to the report, the United States has used free-trade agreements and threats of sanctions to prevent countries from producing and distributing low-cost generic drugs in order to preserve the monopolies of large drug companies. Likewise, the drugs makers themselves are pushing countries to prevent the sale of cheaper drugs. “Pfizer is challenging the Philippines government in a bid to extend its monopoly on Norvasc, a [blood] pressure drug. Novartis is engaged in litigation in India to enforce a patent for Glivec, a cancer drug, which could save many lives if it were available at generic prices,” the Guardian reports. The Oxfam report says that efforts to block the poor’s access to affordable medicine undermines the five-year old Doha declaration, which sought to improve poor countries’ access to cheap drugs. “[R]ich countries have failed to honor their promises. Their record ranges from apathy and inaction to dogged determination to undermine the declaration’s spirit and intent. The US, at the behest of the pharmaceutical industry, is uniquely guilty of seeking ever higher levels of intellectual property protection in developing countries,” the report says. [Guardian, 11/14/2006; Oxfam, 11/14/2006 ]
The EPA releases a staff paper evaluating the policy implications of recent studies on the health and environmental impacts of lead pollutants in an effort to determine whether it may be appropriate to abolish the national standard for lead. It states that “given the significantly changed circumstances since Pb [lead] was listed in 1976, we will evaluate the status of Pb as a criteria.” [US Environmental Protection Agency, 12/2006, pp. 1-1 ; US Congress, 12/6/2006 ] The EPA’s current hazard summary for lead compounds states that “[l]ead is a very toxic element, causing a variety of effects at low dose levels. Brain damage, kidney damage, and gastrointestinal distress are seen from acute (short-term) exposure to high levels of lead in humans.” [US Environmental Protection Agency, 1/2000] Earlier in the year, a lobbying group named Battery Council International wrote to a top EPA air quality official asking him to remove lead from the EPA’s list of air pollutants. The organization also spent $220,000 lobbying public officials from 1998-2002. [Associated Press, 12/7/2006; Center for Responsive Politics, 12/16/2006, pp. 1998-2002]
George W. Bush. [Source: Annie Leibovitz / Vanity Fair]In a news conference, President Bush says that because of the nation’s increasing economic difficulties, the year ahead will “require difficult choices and additional sacrifices.” The nation needs economic growth, and thusly he says to the American populace, “I encourage you all to go shopping more.” [Vanity Fair, 2/2009]
The UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions enters into force. In accordance with the ratification procedure, this happens three months after 30 countries deposited their instruments of ratification at UNESCO. UNESCO Director General Koichiro Matsuura notes, “None of UNESCO’s other cultural conventions has been adopted by so many states in so little time.” The 30 countries are Albania, Austria, Belarus, Bolivia, Bulgaria, Burkina Faso, Cameroon, Canada, Croatia, Denmark, Djibouti, Ecuador, Estonia, Finland, France, Guatemala, India, Lithuania, Luxembourg, Madagascar, Mali, Malta, Mauritius, Mexico, Monaco, Namibia, Peru, the Republic of Moldova, Romania, Senegal, Slovakia, Slovenia, Spain, Sweden, and Togo. By the time it comes into force, 22 more countries have deposited their ratification instruments at UNESCO. [UNESCO, 3/2007]
In an op-ed, the New York Times calls the idea that the US has “the best health care system in the world,” as recently stated by President Bush, or provides “the best medical care in the world,” as recently stated by former New York City Mayor Rudolph Giulani, a “delusion.” “That may be true at many top medical centers,” the Times writes. “But the disturbing truth is that this country lags well behind other advanced nations in delivering timely and effective care.” The Times notes that in 2000, the World Health Organization (WHO) ranked the health care systems of 191 nations. France and Italy were first and second; the US came in 37th. The Times notes a more recent study by “the highly regarded Commonwealth Fund,” which “has pioneered in comparing the United States with other advanced nations through surveys of patients and doctors and analysis of other data”; the latest Commonwealth Fund study put the US last among six highly developed nations (see May 15, 2007). “Other comparative studies also put the United States in a relatively bad light,” the Times notes.
Lack of Universal Coverage - Unlike every other major industrialized nation, the US does not provide universal health coverage. In the US, some 45 million people have no health insurance whatsoever, and millions more suffer with poor coverage. The Times writes, “Although the president has blithely said that these people can always get treatment in an emergency room, many studies have shown that people without insurance postpone treatment until a minor illness becomes worse, harming their own health and imposing greater costs.”
Lack of Access - While citizens of foreign nations often face longer waits before they can see specialists or undergo elective surgery than do Americans in comparable situations, “[t]he real barriers here are the costs facing low-income people without insurance or with skimpy coverage.” However, “even Americans with above-average incomes find it more difficult than their counterparts abroad to get care on nights or weekends without going to an emergency room, and many report having to wait six days or more for an appointment with their own doctors.”
Unfair Disparities - The dichotomy between the care provided to economically well-off Americans and their more economically challenged fellows is worse than in any other industrialized nation. “Americans with below-average incomes are much less likely than their counterparts in other industrialized nations to see a doctor when sick, to fill prescriptions, or to get needed tests and follow-up care.”
Unhealthy Living - The US ranks last among 23 nations in its infant mortality rate—more American children die in infancy than in 22 other countries. “But the problem is much broader,” the Times continues. “We rank near the bottom in healthy life expectancy at age 60, and 15th among 19 countries in deaths from a wide range of illnesses that would not have been fatal if treated with timely and effective care. The good news is that we have done a better job than other industrialized nations in reducing smoking. The bad news is that our obesity epidemic is the worst in the world.”
Varying Quality - The Commonwealth Fund study notes that the US ranks first in providing the correct care for a given condition, and does very well in providing preventative care to its citizens. But it does much worse in coordinating the care of chronically ill patients, in protecting the safety of patients, and in meeting the needs and preferences of patients. Overall, the quality of health care in the US is the lowest among the six nations profiled by the study.
Varying Survival Rates - US citizens live longer than their foreign counterparts with breast cancer, and second-longest with cervical cancer and childhood leukemia. But US citizens rank last or next-to-last in life expectancy for patients with kidney transplants, liver transplants, colorectal cancer, circulatory diseases, respiratory diseases, diabetes, bronchitis, asthma, and emphysema.
Poor Patient Satisfaction - Only 40 percent of Americans are satisfied with the nation’s health care system. Of 17 countries surveyed, the US comes in 14th. The US ranks first in negative public perceptions, with a third of Americans calling for a system-wide revamp of American health care.
Poor Use of Information Technology - American health care providers are years behind their foreign counterparts in their use of information technology, electronic medical records, electronic prescriptions, and more. “This makes it harder to coordinate care, spot errors, and adhere to standard clinical guidelines,” the Times writes.
Conclusion - “With health care emerging as a major issue in the presidential campaign and in Congress, it will be important to get beyond empty boasts that this country has ‘the best health care system in the world’ and turn instead to fixing its very real defects,” the Times concludes. “The main goal should be to reduce the huge number of uninsured, who are a major reason for our poor standing globally.… The world’s most powerful economy should be able to provide a health care system that really is the best.” [New York Times, 8/12/2007]
Nofa Khadduri, an Iraqi peace activist now studying at the University of Toronto, writes an op-ed for the Arabic news network al-Jazeera that terms the Iraq war, and the subsequent occupation, “corporate genocide.” Khadduri writes: “I cannot say this is a war like any other, or even that it is a just war. This war has been too long, too painful, too costly, too evil, too inhumane, and too unjust to simply be deemed an invasion, or even worse, a liberation.… I want this war to be recognized for what it truly is—a genocide against the Iraqi people. It is a corporate hate crime. It is not a ‘just’ war. It does not have a ‘just’ cause. It lacks legitimate authority, it was executed with all the wrong intentions, it was certainly not a last resort, the probability of success was slim.… If the international community recognizes the conflicts in Bosnia, Armenia, and Rwanda as genocides where human rights are replaced with the extermination of ethnic groups, then Iraq deserves the same recognition—and more.”
'Corporate Genocide' in Iraq - Khadduri explains the term “corporate genocide” as something new and horrifyingly different. “Corporate genocide is the mass cooperation of a business-led military invasion, where a population is sacrificed for the economic profit of the invader. A corporate genocide goes beyond blind hate and killing innocent civilians to gain power and territory. In pursuing its economic strategies, the US has caused the death and injury, deliberate or not, of millions of Iraqis.… Foreign businesses that profit and thrive on war have gained new power in Iraq, but lack accountability. Private security firms have little motivation to promote peace—though it is their job—and to end this genocide. Terrorizing my people puts bread in their mouths and takes it away from the mouths of starving Iraqi children. Our war is their income. To keep the money flowing, private security firms dehumanize Iraqi resistance and rebel groups by labeling them as terrorists. The international propagation of this portrayal is one element in the structuring of a corporate genocide. Another is the inability of neither international law nor the international community to hold these firms accountable for their actions, including their killings of innocent people. Individuals perceived to be a threat to the firm are treated as such and can be disposed of under the false guise of an attack, leaving the firms unaccountable. And because these firms have power, they can easily deny misusing it and be believed, if they admit to using it at all.”
Pretense of Democracy, Humanitarian Aid - Khadduri writes that the US has achieved little towards implementing democracy in Iraq. It has assuaged little of the suffering caused by the invasion and occupation, and the subsequent civil war raging in parts of the country. This, he writes, is not a failure of US policy, but an effect of the policy. “Iraqi natural resources are being distributed and scattered among the most powerful corporations, with very little profit earmarked towards the rebuilding of Iraq,” he writes. “This is what the corporate genocide is about. There is much debate about whether Iraq can stand on its own after the departure of the US Army. But it is crucial to keep in mind that the US never held Iraq up as a country and it never helped Iraqis come together as a nation.”
Leaving Iraq to Shape Its Own Future - The US will never impose its own form of government on Iraq, Khadduri asserts, stating: “I said it five years ago and repeat it now: a Western-style democracy cannot be forced on a nation that does not welcome it. To not believe that we, the Iraqi people, will establish a form of government that we see fit for our needs, by ourselves, is an insult to the Iraqi solidarity and historical heritage that has always, continues to, and will never cease to exist.” [Al-Jazeera, 3/18/2008]
’AngryRenter.com’ logo. [Source: AngryRenter (.com)]The Wall Street Journal learns that a supposedly amateur-based, citizen-driven protest Web site is actually a product of a professional public relations and lobbying organization, FreedomWorks (see April 14, 2009). The site, AngryRenter.com, is designed to look like something an “ordinary citizen” would produce. Michael Phillips of the Journal writes, “AngryRenter.com looks a bit like a digital ransom note, with irregular fonts, exclamation points, and big red arrows—all emphasizing prudent renters’ outrage over a proposed government bailout for irresponsible homeowners.” The site’s home page proclaims, “It seems like America’s renters may NEVER be able to afford a home,” and exhorts visitors to sign an online petition directed at Congressional Democrats. (The petition, with some 44,500 signatures, was delivered to Senate leaders earlier in the week.) “We are millions of renters standing up for our rights!” the site proclaims.
'Astroturf' - However, it is designed and hosted by FreedomWorks, which the Journal describes as “an inside-the-Beltway conservative advocacy organization led by Dick Armey, the former House majority leader, and publishing magnate Steve Forbes, a fellow Republican. [Forbes is an unpaid board member.]… [AngryRenter.com is] a fake grass-roots effort—what politicos call an astroturf campaign—that provides a window into the sleight-of-hand ways of Washington.” FreedomWorks opposes the proposed government bailout of the housing industry, and says it plans to oppose any further bailouts. AngryRenter.com is copyrighted by FreedomWorks, which discloses its ownership of the site on a page deeper into the site. However, Phillips writes, “The site is nonetheless designed to look underdoggy and grass-rootsy, with a heavy dose of aw-shucks innocence.” The site says: “Unfortunately, renters aren’t as good at politics as the small minority of homeowners (and their bankers) who are in trouble. We don’t have lobbyists in Washington, DC. We don’t get a tax deduction for our rent, and we don’t get sweetheart government loans.” Most visitors to the site have no idea that lobbyists for FreedomWorks actually wrote that copy, nor that FreedomWorks garnered $10.5 million in lobbying fees in 2006, most of which came from large donors the organization is not obligated to disclose.
FreedomWorks Operated by Millionaires - FreedomWorks president Matthew Kibbe says the site is an attempt to “reach out” to disgruntled renters who share the free-market views of Armey, Forbes, and others. Kibbe calls himself “an angry homeowner who pays his mortgage.” He lives on Capitol Hill in DC, in a home valued at $1.17 million. Forbes lives in a home in New Jersey worth $2.78 million, and owns, among other properties, a chateau in France. (The Forbes family recently sold its private island in Fiji and its palace in Morocco.) Armey earns over $500,000 a year working for FreedomWorks, and lives in a Texas home valued at $1.7 million. Representative Barney Frank (D-MA) says he finds it amusing that Armey is portraying himself as a champion of ordinary renters. “I worked a long time trying to improve the condition of renters,” he says. “Dick Armey has usually been on the other side.”
Looking Out for the 'Poor Devil' Who Can't Afford to Buy a Home - Armey says he’s looking out for “the poor devil” who can’t afford to buy a house. “From our point of view, we have an industry in which people were very careless, very reckless—both lenders and borrowers. What various policy makers are saying is we need to rush in here with a program to protect people from the consequences of their own bad judgment.”
Deliberately Misleading? - Armey defends AngryRenter.com’s deliberately amateurish appearance, and calls it “voluntary” for civic participation. San Diego financial adviser Rich Toscano, who rents his home, thought the site was an amateur venture similar to his own blog, Professor Piggington’s Econo-Almanac for the Landed Poor, which chronicles foreclosures and other financial misfortunes suffered by real-estate brokers whom Toscano says helped inflate the area’s real-estate bubble. AngryRenter.com appeared to Toscano as genuinely citizen-produced: “It looks like a young person did it,” he says. He still supports the site even after learning that it is a production of a DC lobbying firm, saying the message is more important than the identity of the bailout. Web designer Chris Kinnan, a FreedomWorks employee, actually designed the site. Of himself, he says: “I’m a renter. I’m not an angry renter.” [Wall Street Journal, 5/16/2008]
US taxpayers express their lack of support of the Troubled Asset Relief Program (TARP—see October 3, 2008) bailout bill to members of Congress, including Speaker of the House Nancy Pelosi (D-CA), Senate majority Leader Harry Reid (D-NV), and the Senate and House budget committee chairs—Chris Dodd (D-CT) and Barney Frank (D-NY), respectively—with phone calls, emails, and faxes, initially rallying the power and the numbers to defeat the bill that some call “a historic swindle.” [The Nation, 9/19/2008] According to the Congressional Quarterly, “[Senator Lindsey] Graham (R-FL) said that the deluge of public e-mails and telephone calls was comparable to several of the most contentious issues of the last decade.” Graham adds:
“It’s somewhere between impeachment and immigration.… This is intense, but I’ve seen worse.” [Congressional Quarterly, 9/28/2008]
Samuel Wurzelbacher, a.k.a. ‘Joe the Plumber.’ [Source: Orlando Sun-Sentinel]Republican presidential candidate John McCain (R-AZ)‘s running mate, Sarah Palin (R-AK), accuses Democratic presidential candidate Barack Obama (D-IL) of advocating socialism as an economic plan. “[N]ow is no time to experiment with socialism,” Palin says, referring to Obama’s proposal to offer tax credits to those paying no income taxes. Palin echoes comments made by Pennsylvania resident Samuel Wurzelbacher, known to the media as “Joe the Plumber,” in which he said Obama’s tax plan sounded like socialism to him. Palin tells a crowd in New Mexico: “Senator Obama said he wants to quote ‘spread the wealth.’ What that means is he wants government to take your money and dole it out however a politician sees fit.” Referring to a man in the crowd holding up a sign identifying himself as “Ed the Dairy Man,” Palin adds, “But Joe the Plumber and Ed the Dairy Man, I believe that they think that it sounds more like socialism.” She continues: “Friends, now is no time to experiment with socialism. To me, our opponent plans sounds more like big government, which is the problem. Bigger government is not the solution.” She calls Obama’s tax plan “a government giveaway,” and says the plan will raise taxes on those who already pay taxes: “He claims that he’ll cut income taxes for 95 percent of Americans, but the problem is, more than 40 percent of Americans pay no income taxes at all,” she says. “Since he can’t reduce taxes on those who pay zero, he wants the government to send them a check that’s called a tax credit. And where is he gonna get the money for all those checks that he will cut? By raising taxes on America’s hard-working families and our small businesses.” Later, at an airport in Colorado Springs, Palin tells a reporter, “There are socialist principles to [Obama’s tax plans], yes.” She continues, “Taking more from a small business or small business owners or from a hard-working families and then redistributing that money according to a politician’s priorities—there are hints of socialism in there and that’s why I don’t fault or discredit Joe the Plumber for bringing that up, asking if that is socialism.” Palin says that the $700 billion White House bailout of failing banks and other financial institutions is not socialism: “I believe that there are those measures that had to be taken by Congress to shore up not only the housing market but the credit markets, also to make sure that that’s not frozen, so that our small businesses have opportunities to borrow and that was the purpose, of course, of that part of the bailout and the shoring of the banks.” [ABC News, 10/20/2008]
As reported by progressive media watchdog site Media Matters, many different conservative radio hosts repeat a falsehood about presidential candidate Barack Obama (D-IL) that originates on the Drudge Report. According to the original report, Obama told a radio audience in 2001 that he regretted the US Supreme Court did not pursue “wealth redistribution,” a concept some associate with socialism. Obama did not make such a statement; instead he said during that interview that it was a tragedy the civil rights movement “became so court-focused” in trying to bring about political and social equality. Minneapolis radio host Chris Baker misquotes Obama by claiming that he said “we gotta have economic justice and the Supreme Court ought to weigh in on redistributing wealth.” Baker adds: “Yeah, it’s too bad you kind of stuck with the Constitution as it was. It’s a tragedy that redistribution of wealth was not pursued by the Supreme Court. Can you believe that?” Baker also claims that Obama “wants to use the Supreme Court to reinterpret the Constitution in order to force the redistribution of wealth.” Baker is not the only radio host to repeat the falsehood. Sean Hannity tells his radio audience, referring to the 2001 interview, “Obama actually believes the Constitution is defective because it doesn’t allow judges to redistribute wealth.” He adds: “if he becomes president, [Obama] wants the Supreme Court and other federal courts to literally have the power to spread the wealth around and redistribute the wealth. Those are his words, his voice.” He goes on to say flatly, “Obama is a socialist.” Mark Levin tells his listeners, “what the [Supreme] Court should have done from Obama’s point of view was impose socialism from the bench.” Levin levels another false accusation against Obama: that he wants to reinterpret the 14th Amendment “to compel as a matter of constitutional law, the socialist agenda. In other words, constitutionalize redistribution of wealth.” Radio hosts Michael Savage, Jim Quinn, Brian Sussman, and others reiterate the claims, with Quinn telling listeners: “He just got done telling you that the Constitution’s only half-done. He needs to write the other half—you know, the other half where we decide how much we take from you and give to that guy down the street.” Like many of his colleagues, Sussman plays an edited clip of Obama’s 2001 statement to bolster his claims. [Media Matters, 10/28/2008; Media Matters, 11/6/2008]
Paul Broun. [Source: Associated Press / Washington Blade]Responding to President-elect Barack Obama’s proposal for a “civilian national security force,” an idea supported by President Bush and designed in part to revive the moribund Americorps (see March 31, 2009), Representative Paul Broun (R-GA) accuses Obama of wanting to establish a Gestapo-like security force to impose a Marxist dictatorship. “It may sound a bit crazy and off base, but the thing is, he’s the one who proposed this national security force,” Broun says. “I’m just trying to bring attention to the fact that we may—may not, I hope not—but we may have a problem with that type of philosophy of radical socialism or Marxism.… That’s exactly what Hitler did in Nazi Germany and it’s exactly what the Soviet Union did. When he’s proposing to have a national security force that’s answering to him, that is as strong as the US military, he’s showing me signs of being Marxist.” Obama campaign spokesman Tommy Vietor says the candidate was referring to a “civilian reserve corps” that could handle postwar reconstruction efforts in lieu of the military. The idea has been endorsed by the Bush administration. Broun also says that if elected, Obama will ban gun ownership among American citizens. Obama has repeatedly says he respects the Second Amendment’s right to bear arms, and favors “common sense” gun laws. Some gun advocates fear that Obama will curb ownership of assault weapons and concealed weapons. “We can’t be lulled into complacency,” Broun says. “You have to remember that Adolf Hitler was elected in a democratic Germany. I’m not comparing him to Adolf Hitler. What I’m saying is there is the potential of going down that road.” [Associated Press, 11/11/2008; Think Progress, 11/11/2008]
Fox News pundit Bill O’Reilly and former Bush administration political director Karl Rove tell listeners that media journalists are “overstating” the current economic problems in order to help the incoming Obama administration. O’Reilly asks Rove, “All right, so you are agreeing with me then that there is a conscious effort on the part of the New York Times and other liberal media to basically paint as drastic a picture as possible, so that when Barack Obama takes office that anything is better than what we have now?” Rove’s response: “Yes.” O’Reilly says that the “plot” is to “blame everything on Bush for quite a long period of time.” Rove calls the economic reporting little more than “scare tactics.” O’Reilly concludes: “All I want is an honest press. I’m not hoping one way or the other.” Amanda Terkel of the Center for American Progress observes: “For years, in fact, the Bush administration has tried Rove and O’Reilly’s strategy of insisting that nothing is wrong. Although the United States has been in a recession since December 2007, the Bush administration has continued to insist that the economy was strong. The result? A government unprepared to deal with ‘the worst financial crisis since the Great Depression.’” [Think Progress (.org), 12/9/2008]
According to Jim Rogers, the co-founder of the Quantum Fund along with billionaire financier George Soros, the federal government’s efforts to fix the sector are “wrongheaded.” During a teleconference at the Reuters Investment Outlook 2009 Summit, Rogers says that the government’s $700 billion rescue package for the sector doesn’t address how banks manage their balance sheets, and rewards weaker lenders with new capital. More than two dozen banks have received infusions from the Troubled Asset Relief Program (TARP), and some TARP funds are being used for acquisitions. [White House, 10/3/2008] “Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt,” says Rogers, now a private investor. “What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent,” he continues. “What’s happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics.” [Reuters, 12/11/2008]
During the year, a number of states enact over 77 laws and other measures that affect reproductive rights, a sharp upturn from the 33 enacted in 2008. Some of these laws restrict reproductive rights (see 2009), others protect and enhance them. Some of the latter are as follows:
California, Iowa, and Minnesota refuse to enact cuts in funding family planning programs.
Colorado, in a move designed to protect contraceptive services from state restrictions on abortion, adopts a law formally defining contraception as any method used to prevent a pregnancy from occurring.
Georgia and Wisconsin expand Medicaid recipients’ access to contraception, joining 19 other states with similar mandates.
Hawaii and North Carolina enact laws requiring that sex education provided in public schools be medically accurate and include a discussion of contraception; in all, 17 states require inclusion of contraception in sex education curricula. North Carolina also mandates abstinence-only education and a discussion of sexually transmitted diseases.
Illinois, North Dakota, Utah, and Vermont expand access to STI (sexually transmitted infections) treatment and prevention.
Oregon enacts a new law to reduce the incidence of HPV (human papillomavirus) infections, joining five other states with such legal mandates.
Utah and Virginia adopt laws designed to expand access to emergency contraception to women who have been sexually assaulted. In all, 12 states have similar provisions.
Wisconsin passes a law requiring private insurance plans to cover contraceptive services and supplies under most circumstances; 27 states mandate similar coverage. [Guttmacher Institute, 1/2010]
The California Nurses Association (CNA) releases the results of a study which found “a national single-payer style health care reform system would provide a major stimulus for the US economy by creating 2.6 million new jobs, and infusing $317 billion in new business and public revenues, with another $100 billion in wages into the US economy.” The study was conducted by the Institute for Health & Socio-Economic Policy (IHSP), a “non-profit policy and research group” that is “the exclusive research arm of the California Nurses Association/National Nurses Organizing Committee.” In addition to the growth in jobs and revenues generated by covering the 47 million Americans who were uninsured as of 2006, the study also found that universal coverage “could be achieved for $63 billion beyond the current $2.1 trillion in direct health care spending,” according to the press release for the study, which also notes that this figure is “six times less than the federal bailout for CitiGroup, and less than half the federal bailout for AIG.” [CalNurses.org, 1/14/2009]
Conservative talk show host Rush Limbaugh has already launched attacks on President-elect Barack Obama, including attempting to blame him for the global recession even though he has not yet taken office (see November 5-12, 2008). Today he tells his listeners that he hopes Obama’s administration is a failure. (Limbaugh’s words are publicly reported by the liberal organization ThinkProgress; his remarks are carried on his Web site, but are accessible only to those who pay for access.) Limbaugh says, “I disagree fervently with the people on our [Republican] side of the aisle who have caved and who say, ‘Well, I hope he succeeds.’” Limbaugh says “a major American print publication” has asked him to write a brief statement on his “hope for the Obama presidency.” Limbaugh’s response: “So I’m thinking of replying to the guy, ‘Okay, I’ll send you a response, but I don’t need 400 words, I need four: I hope he fails.” When Limbaugh is interrupted by someone in the studio laughing, he continues: “What are you laughing at? See, here’s the point. Everybody thinks it’s outrageous to say. Look, even my staff, ‘Oh, you can’t do that.’ Why not? Why is it any different, what’s new, what is unfair about my saying I hope liberalism fails? Liberalism is our problem. Liberalism is what’s gotten us dangerously close to the precipice here. Why do I want more of it? I don’t care what the Drive-By story is. [Limbaugh often refers to the mainstream media as the ‘drive-by media.’] I would be honored if the Drive-By Media headlined me all day long: ‘Limbaugh: I Hope Obama Fails.’ Somebody’s gotta say it.” [Think Progress, 1/20/2009]
NYU Economics Professor Nouriel Roubini tells Bloomberg News that, following the $350 billion injection by the Bush Administration, President Barack Obama will have to use as much as $1 trillion of taxpayer funds to shore up capitalization of the banking sector. “The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.” Roubini also predicts that oil prices will continue to trade between $30 to $40 a barrel all year. Regarding commodities, Roubini said, “I see commodities falling overall another 15-20%. This outlook for commodity prices is beneficial for oil importers, it’s going to imply that economic recovery might occur faster, but from the point of view of oil exporters, this will be very negative.” [Street Insider.com, 1/20/2009; Bloomberg, 1/20/2009]
Eric Cantor. [Source: Washington Post]House Minority Whip Eric Cantor (R-VA) claims, falsely, that the Obama stimulus package would spend four times as much money on “lawn grass” as it allocates for small businesses. Cantor is referring to the plan’s $200 million allocation for renovating Washington’s National Mall, which fellow Republicans characterize as “earmarks” or “pork.” According to MSNBC and Fox News, Cantor claims: “When you’re seeing four times as much money spent on grass in Washington—that is actually lawn grass in Washington—than you do to help small businesses, that has your priorities backwards.… If you look at the bill that passed the ways and means committee yesterday, for every dollar spent to help small businesses, four dollars is being spent to help upkeep the grass on the lawns of Washington. Again, what does that have to do with a stimulus bill?” The Center for American Progress (CAP), a progressive think tank, accuses Cantor of “completely invent[ing] the truth.” The draft version of the House stimulus plan allocates over four times as much money for “creating small business opportunity”—$880 million—than for renovating the National Mall. The figures also do not include the stimulus plan’s more than $20 billion in business tax cuts. CAP notes that spending money on infrastructure, such as the Mall renovations, is considered one of the most effective ways to stimulate the economy, creating “twice as many jobs as tax cuts.” The tax cuts that Cantor champions—mostly for large businesses and wealthy Americans—are, CAP says, among the least efficient ways to grow the economy. Cantor is also wrong in characterizing the Mall spending as money for “lawn grass.” The money will be allocated for, among other projects, repairing the Tidal Basin’s seawall, adding restrooms to the Mall, and renovating buildings and monuments in Washington’s Capitol district. CAP notes that “all of [this] will require new workers and create jobs.” [Think Progress, 1/23/2009]
Conservatives and Congressional Republicans attack President Obama’s economic stimulus plan with a variety of claims centering on “earmarks” or “Democratic pork.” One claim is that the stimulus package wastes hundreds of millions of dollars on funding for contraceptives. “You know, I’m concerned about the size of the package.” says House Minority Leader John Boehner (R-OH). “And I’m concerned about some of the spending that’s in there, [about]… how you can spend hundreds of millions on contraceptives. How does that stimulate the economy?” [New York Post, 1/26/2009]
Reduces Costs to State, Federal Budgets - House Speaker Nancy Pelosi (D-CA) explains the rationale behind the funding: “Well, the family planning services reduce cost. They reduce cost. The states are in terrible fiscal budget crises now and part of what we do for children’s health, education, and some of those elements are to help the states meet their financial needs. One of those—one of the initiatives you mentioned, the contraception, will reduce costs to the states and to the federal government.” [Think Progress, 1/26/2009]
Limbaugh's Suggestion - Conservative talk show host Rush Limbaugh retorts that if Pelosi “wants fewer births, I have the way to do this and it won’t require any contraception: You simply put pictures of Nancy Pelosi… in every cheap motel room.… That will keep birthrates down because that picture will keep a lot of things down.” [Media Matters, 1/26/2009]
Savings of $700 Million - The language of the stimulus bill reads: “Under current law, the secretary [of health and human services] has the authority under section 1115 of the Social Security Act to grant waivers to states to allow them to cover family planning services and supplies to low-income women who are not otherwise eligible for Medicaid. The bill would give states the option to provide such coverage without obtaining a waiver. States could continue to use the existing waiver authority if they preferred.” The Center for American Progress (CAP), a progressive think tank, explains that this portion of the stimulus bill “would not only aid states, but also provide preventative, cost-saving health care to help low-income women support their families and keep working.” According to the Congressional Budget Office (CBO), the measure would save the nation $200 million over five years and $700 million over 10 years. States that choose not to participate in the program are not required to do so. Representative James Clyburn (D-SC) notes, “I think that Mr. Boehner is looking for one little sound bite rather than looking at the total package here and seeing what it will do for the American people.” [Think Progress, 1/26/2009]
Halliburton Co agrees to pay a $559 million fine to end an investigation of its former KBR subsidiary if the US government approves the settlement. KBR, formerly Kellogg Brown & Root, has long been accused of violating anti-bribery laws by paying kickbacks to Nigerian officials in return for “sweetheart deals” involving Nigeria’s oil and natural gas fields. The fine, if paid, will be the largest penalty in history against a US company for violations of the Foreign Corrupt Practices Act (FCPA); the settlement would allow Halliburton to avoid having a government monitor put in place, but would require the company to hire an independent consultant to assess its compliance with anti-bribery laws. Halliburton would pay $382 million to the Department of Justice and $177 million to the Securities and Exchange Commission in “disgorgement.” KBR, which has become independent of Halliburton since the incidents in question, refuses to comment on the settlement. The government’s probe of Halliburton/KBR goes back over 20 years, to the construction and expansion of a gas liquefaction facility at Bonny Island, Nigeria. Halliburton has admitted that its agents probably bribed Nigerian officials, and former KBR CEO Albert Stanley has already pled guilty to charges stemming from the Bonny Island bribery scheme. Former Vice President Dick Cheney was Stanley’s immediate supervisor when Cheney was CEO of Halliburton. [Reuters, 1/26/2009]
“The worst economic turmoil since the Great Depression is not a natural phenomenon but a man-made disaster in which we all played a part,” says Guardian City editor Julia Finch, who lists individuals who led the world into its current economic crisis (see June 2008). These individuals include:
Alan Greenspan, US Federal Reserve chairman, 1987-2006: “[B]lamed for allowing the housing bubble to develop as a result of his low interest rates and lack of regulation in mortgage lending. Backed sub-prime lending; urged homebuyers to swap fixed-rate mortgages for variable rate deals, leaving borrowers unable to pay when interest rates rose. Defended the booming derivatives business, which barely existed when he took over the Fed, but which mushroomed from $100tn in 2002 to more than $500tn five years later.”
Mervyn King, governor of the Bank of England: “His ambition was that monetary policy decision-making should become ‘boring.’”
Bill Clinton, former US president: “Beefed up the 1977 Community Reinvestment Act to force mortgage lenders to relax their rules to allow more socially disadvantaged borrowers to qualify for home loans. Repealed the 1999 Glass-Steagall Act, prompting the era of the superbank; the year before the repeal, sub-prime loans were just 5 percent of all mortgage lending. By the time the credit crunch blew up it was approaching 30 percent.” [Guardian, 1/26/2009]
Media critic and columnist George Neumayr writes that the Democrats’ economic stimulus plan will include enforced abortions and euthanasia for less productive citizens. Neumayr calls this claim a once “astonishingly chilly and incomprehensible stretch [that] is now blandly stated liberal policy,” basing it on the Democrats’ plan to provide money to the states for “family planning.” Neumayr equates the funding, which would go for such initiatives as teaching teenagers about the use of condoms and measures to avoid sexually transmitted diseases, to the famous Jonathan Swift essay of 1729, “A Modest Proposal,” which satirically suggested that impoverished Irish families might sell their children to rich Englishmen for food. “Change a few of the words and it could be a Democratic Party policy paper,” Neumayr writes. “Swift suggested that 18th-century Ireland stimulate its economy by turning children into food for the wealthy. [House Speaker Nancy] Pelosi [D-CA] proposes stimulating the US economy by eliminating them. Other slumping countries, such as Russia and France, pay parents to have children; it looks like Obama’s America will pay parents to contracept or kill them. Perhaps the Freedom of Choice Act can also fall under the Pelosi ‘stimulus’ rationale. Why not? An America of shovels and scalpels will barrel into the future. Euthanasia is another shovel-ready job for Pelosi to assign to the states. Reducing health care costs under Obama’s plan, after all, counts as economic stimulus too. Controlling life, controlling death, controlling costs. It’s all stimulus in the Brave New World utopia to come.” Like a Washington Times editorial from months earlier (see November 23, 2008), Neumayr uses the term “final solution” for the Democrats’ economic proposal, the term for the Nazis’ World War II-era extermination of millions of Jews and other “undesirables.” He writes: “‘Unwanted’ children are immediately seen as an unspeakable burden. Pregnancy is a punishment, and fertility is little more than a disease. Pelosi’s gaffe illustrates the extent to which eugenics and economics merge in the liberal utilitarian mind.” “Malthus lives,” he says, referring to the 19th century scholar Thomas Robert Malthus, whose theories of ruthless natural selection predated Charles Darwin’s theories of evolution. Neumayr goes on to accuse “Hillary Clinton’s State Department” of preparing to set up programs of “people-elimination,” predicated on what he calls “UN-style population control ideology” and “third-world abortions.” [American Spectator, 1/27/2009]
The Iraqi government informs the US Embassy in Baghdad that it will not issue a new operating license to Blackwater Worldwide, the embassy’s main security company. In effect, the decision forces Blackwater to cease operations within Iraq. Many Blackwater employees are accused of using excessive force while protecting US diplomats and State Department personnel. Those Blackwater employees not accused of improper conduct may continue working as private security contractors in Iraq, as long as they quit Blackwater and begin working for other firms. Blackwater must leave Iraq as soon as a joint US-Iraqi committee finalizes guidelines for the conduct and liability of private contractors under the new security agreement between the two countries. Under earlier agreements, Blackwater and other US contractors have been entirely immune from prosecution under Iraqi law. Iraqi Interior Ministry spokesman Major General Abdul-Karim Khalaf says, “When the work of this committee ends,” private security companies “will be under the authority of the Iraqi government, and those companies that don’t have licenses, such as Blackwater, should leave Iraq immediately.” US State Department spokesman Noel Clay says the department’s contractors will obey Iraqi law: “We will work with the government of Iraq and our contractors to address the implications of this decision in a way that minimizes any impact on safety and security of embassy Baghdad personnel.” A Blackwater spokeswoman says her firm is unaware of the Iraqi government’s decision. The Interior Ministry revoked Blackwater’s license to operate in Iraq in September 2007 and threatened to expel the firm’s employees, but US officials ignored the order and renewed the company’s contract. Blackwater contractors have been involved in around 200 shootings in Iraq since 2005, many involving Iraqi civilians. Five Blackwater contractors face manslaughter charges for killing 17 Iraqi civilians in September 2007, the incident that prompted the Interior Ministry to try to expel the firm from the country. The widow of one of the 17 civilians, Umm Tahsin, says of Blackwater: “Those people are a group of criminals. What they did was a massacre. Pushing them out is the best solution. They destroyed our family.” [Washington Post, 1/28/2009]
Yale economist Robert Schiller reflects on the genesis of the economic recession, tracing it back in part to policies pursued by the Bush administration for the 2004 presidential election effort. At that time, Schiller warned of a “housing bubble” caused by a plethora of bad loans and toxic debt, and called for re-regulation of the housing markets. His warnings were ignored. Schiller says: “The Bush strategists were aware of the public enthusiasm for housing, and they dealt with it brilliantly in the 2004 election by making the theme of the campaign the ownership society. Part of the ownership society seemed to be that the government would encourage home ownership and, therefore, boost the market. And so Bush was playing along with the bubble in some subtle sense. I don’t mean to accuse him of any—I think it probably sounded right to him, and the political strategists knew what was a good winning combination. I don’t think that he was in any mode to entertain the possibility that this was a bubble. Why should he do that? Attention wasn’t even focused on this. If you go back to 2004, most people were just—they thought that we had discovered a law of nature: that housing, because of the fixity of land and the growing economy and the greater prosperity, that it’s inevitable that this would be a great investment. It was taken for granted.” John C. Dugan, the comptroller of the currency since 2005, says he believes a lack of regulation caused the “housing bubble.” Dugan says: “A lot of mortgages got made to people who could not afford them and on terms that would get progressively worse over time, and that created the seeds of an even bigger problem. As the whole market became even more dependent on house-price appreciation, when house prices flattened and then started to decline the whole situation began to unravel. The question you have to ask yourself: Why did credit become so easy? Why would lenders make mortgages that became increasingly less likely to be repaid? Part of the answer is that there was a huge chunk of the mortgage market that was not regulated to any significant extent. The overwhelming proportion of subprime loans were being done in entities that were not banks and not regulated as banks—I’m talking here about mortgage brokers and non-bank mortgage lenders that could originate these mortgages and then sell them to Wall Street firms that could package them into new kinds of mortgage securities, which arguably could take into account the lower credit risks and still be salable to investors worldwide. Unfortunately, the theory was not in accord with the reality. Although they thought they had accurately gauged that risk, they too were in fact depending—when you get to the bottom of it—on house prices continuing to go up and up and up. And they did not.” [Vanity Fair, 2/2009]
Henry Paulson, the former secretary of the treasury, explains how the recession and market destruction came about on his watch. Part of his problem was his admitted lack of knowledge about regulation and regulatory authorities. “I easily could imagine and expected there to be financial turmoil,” he says. “But the extent of it, okay, I was naive in terms of—I knew a lot about regulation but not nearly as much as I needed to know, and I knew very little about regulatory powers and authorities. I just had not gone into it in that kind of detail. This’ll be the longest we’ve gone in recent history without there being turmoil, and given all the innovation in the private pools of capital and the over-the-counter derivatives and the excesses around the world, we figured that when there was turmoil, and these things were tested for the first time by stress, it would be more significant than anything else. I said at the time, I have a concern that every rally we’re going to have in the financial markets will be a false rally until we break the back of the price correction in real estate. And these things are never over until you have a couple of institutions go that surprise everyone. Bear Stearns can hardly be a shock (see March 15, 2008). But having said that, it’s one thing to see it intellectually and it’s another to see where we are.” [Vanity Fair, 2/2009]
The American Recovery and Reinvestment Act (ARRA) invests $90 billion in clean energy projects for the next 10 years via loan guarantees, tax incentives, and grants. $38 billion of this is government spending and $20 billion is tax incentives. Symbolically, President Obama signs the bill into law at the Denver Museum of Nature and Science, where he takes a tour of the museum’s solar panel installation. He says he hopes the bill will inspire Americans to get involved in “green” energy the same way that President Kennedy’s goal to put a man on the moon inspired Americans in the 1960s. “I hope this investment will ignite our imagination once more in science, medicine, energy and make our economy stronger, our nation more secure, and our planet safer for our children,” Obama says before signing the bill. The bill includes:
A three-year extension to the tax credit for wind, which would have expired at the end of this year, and an extension until the end of 2013 for geothermal and biomass renewable-energy projects. The credit has been increased to 30 percent of the investment.
$4.5 billion in direct spending to modernize the electricity grid with smart-grid technologies.
$6.3 billion in state energy-efficient and clean-energy grants, and $4.5 billion to make federal buildings more energy efficient.
$6 billion in loan guarantees for renewable energy systems, biofuel projects, and electric-power transmission facilities.
$2 billion in loans to manufacture advanced batteries and components for applications such as plug-in electric cars.
$5 billion to weatherize homes of up to 1 million low-income people.
$3.4 billion appropriated to the Department of Energy for fossil energy research and development, such as storing carbon dioxide underground at coal power plants.
A tax credit of between $2,500 and $5,000 for purchase of plug-in electric vehicles, available for the first 200,000 placed into service.
Most companies in the green-tech field hail the new focus on energy efficiency and renewable energy in the bill, contrasting it with the Bush administration’s support for fossil fuel energy production and its disdain for clean energy programs. Investors and analysts say the new law is a step towards a comprehensive energy policy based on sustained commitment to renewable energy and efficiency. Michael Liebriech of New Energy Finance says: “For years, US policymakers’ support for clean energy has been uneven. No longer… the US will have a great chance to be the growth engine for our industry over the next several years.” The spending should have an almost-immediate impact, especially in areas such as smart grid technology and energy efficiency, says venture capitalist Dennis Costello. However, even this influx of government funding does not solve all the financial problems facing energy technology firms. The recession continues to grip the economy, he notes, damping demand and making financing of new projects difficult. “It’s kind of refreshing to see at least beginnings of a real energy policy, some sort of unified approach to our energy problems,” he says. “But it isn’t going to solve our energy problems. There are a lot of countervailing factors to give pause to being over-exuberant on the future of energy sector and clean tech.” [CNET News, 2/17/2009; Adam Johnston, 7/2013]
FedUpUSA, a group of investors in Troy, Michigan, issues a call for people to send tea bags to Congress as a sign of their disapproval of Democratic economic policies. The group calls the event a “Commemorative Tea Party.” This will become one of the earliest events in the history of the “tea party” movement. [Institute for Research & Education on Human Rights, 8/24/2010] Nineteen days later, CNBC commentator Rick Santelli will launch what he calls an unplanned, “impromptu” rant against the Obama administration’s economic policies, in which he will call for a “tea party” protest (see February 19, 2009).
Wall Street Journal editorial board member Stephen Moore, appearing as a guest on Fox News host Glenn Beck’s show, compares Social Security to “a big Ponzi scheme.” Moore and Beck are discussing the issue of the US debt, and Moore compares the cycle of different government agencies buying and selling portions of the debt to one another to Social Security, saying: “It’s very much like the way Social Security works. It’s a big Ponzi scheme. It’s like a big vault of IOUs.” [Media Matters, 2/2/2009; Media Matters, 9/7/2010] Beck will later call Social Security a “Stalinist” program designed to forcibly redistribute wealth to poorer citizens (see January 27, 2010).
Pete Sessions. [Source: Washington Post]Representative Pete Sessions (R-TX), the chairman of the National Republican Congressional Committee, says that House Republicans should become political “insurgents” to oppose and undermine the Obama administration, specifically its economic proposals, and says the GOP can learn from the example of the Taliban. “Insurgency, we understand perhaps a little bit more because of the Taliban,” he tells editors of the conservative National Journal. “And that is that they went about systematically understanding how to disrupt and change a person’s entire processes. And these Taliban—I’m not trying to say the Republican Party is the Taliban. No, that’s not what we’re saying. I’m saying an example of how you go about [sic] is to change a person from their messaging to their operations to their frontline message. And we need to understand that insurgency may be required when the other side, the House leadership, does not follow the same commands, which we entered the game with.” Sessions complains that neither President Obama nor House Democrats have attempted to work with Republicans in a truly bipartisan fashion. “If they do not give us those options or opportunities then we will then become insurgency of a nature to where we do those things that are necessary to making sure the American public knows what we think the correct answer is. So we either work together, or we’re going to find a way to get our message out.” Sessions says he is not comparing House Republicans to the Taliban: “I simply said one can see that there’s a model out there for insurgency.” Sessions is interrupted by an aide, who explains that Sessions is merely trying to express the need for Republicans to start thinking about how to act strategically as the minority party. Sessions blames House Speaker Nancy Pelosi (D-CA) for the Republicans’ new approach: “I think insurgency is a mindset and an attitude that we’re going to have to search for and find ways to get our message out and to be prepared to see things for what they are, rather than trying to do something about them. I think what’s happened is that the line was drawn in the sand” by Pelosi. [National Journal, 2/5/2009] At a House Republicans’ retreat the week before, Sessions told fellow Republicans that they “need to get over the idea that they’re participating in legislation and ought to start thinking of themselves as ‘an insurgency’ instead.” [Think Progress, 2/5/2009]
Fox News on-air graphic repeating a typo from the original Senate Republican Communications Center press release. [Source: Media Matters]Fox News anchor Jon Scott, co-anchor of the “straight news” program Happening Now, uses research provided in a Senate Republican Communications Center (SRCC) press release to make dubious claims about how the Obama economic recovery plan “grew, and grew, and grew” over time. While Scott reports the claims, Fox displays seven graphics illustrating them. The graphics’ textual content hews so closely to the SRCC’s press release that it even repeats a typographical error found in the original memo. Scott and the on-air graphics cite the SRCC’s original sources for their information, which include Politico, the Congressional Quarterly, the Denver Post, the Washington Times, the New York Times, and the Wall Street Journal, but neither Scott nor the graphics acknowledge the SRCC as the source of the research. The typo is in the seventh and last graphic, incorrectly citing the date of a Wall Street Journal article as “12/19/09.” The next day, Scott apologizes, but only for the typo, prompting Washington Post media critic and CNN host Howard Kurtz to say: “We sometimes jab at the pundits for using talking points, but in the case of Fox News anchor Jon Scott, it was literally true this week.… You should be apologizing for using partisan propaganda from the GOP without telling your viewers where it came from. Talk about missing the point” (see October 13, 2009). [Media Matters, 2/10/2009; Media Matters, 2/15/2009]
Seattle math teacher and Young Republican member Keli Carender, writing for her blog “Redistributing Knowledge” under the moniker “Liberty Belle,” posts: “Anyone in the Seattle area? I would like to stage a Porkulus Protest here. I know that ‘the most frightening bill on Earth’ has now passed both Houses, but they are going to have to reconcile the two bills, which will take at least a few days, I’m hoping!” (Carender is referring to the recent passage of the federal economic stimulus package.) “If you are at all close to this area, leave a comment that you would be interested in attending. I’m going to go look up the requirements to have a protest around our dear Senators’ offices downtown. Unlike the melodramatic lefties, I do not want to get arrested. I do however want to take a page from their playbook and be loud, obnoxious, and in their faces. If I don’t do something, I might just lie around totally depressed. Who’s with me??” Carender gets a single comment in return, from an anonymous poster promising to mention her idea on his Internet radio show and advising her to “[k]eep up the fight against Marxism and Faux-Bama!” Shortly thereafter, she posts exuberantly, “The protest against the porkulus is on for President’s Day!” She gives the date as February 16, 2009 in Westlake Park, and advises: “The idea is to use what we’ve learned about dissent over the last eight years. We need loud protests with lots noise and visuals. So, what should you bring? Bring AS MANY PEOPLE AS YOU CAN! Bring your families, your friends, neighbors, bring everyone! Bring SIGNS!! Get those craft making juices flowing and make signs and banners and pictures and paintings. Just imagine that you are a left-wing college student with nothing else to do and that should help you get started! Bring something to sit on and appropriate clothing. Most importantly, JUST BRING IT!!!” Carender receives no comments until February 11, when a trickle of positive responses begin appearing. [Keli Carender, 2/10/2009; Keli Carender, 2/10/2009; Huffington Post, 4/15/2009] The term “porkulus” has been popularized by talk show host Rush Limbaugh, in reference to the economic stimulus package, which Limbaugh says is loaded with “pork” for Democratic Congress members. [Institute for Research & Education on Human Rights, 8/24/2010] Carender’s rally is later considered one of the seminal events in the nascent “tea party” movement (see February 16-17, 2009).
The Washington Times spins off a recent op-ed by health industry lobbyist Betsy McCaughey (see February 9, 2009) to claim that the Obama administration will attempt to save money by euthanizing old people, disabled people, and sickly infants. The editorial begins with the “chilling” idea of a national medical information database that will allow the government to “track… your every visit to a health care provider—where you went, who you saw, what was diagnosed, and what care was provided.” The Obama administration, the Times claims, will use that information to decide which people deserve the more expensive lifesaving treatments and which ones must be denied in the interest of cost efficiency. “If it costs too much to treat you, and you are nearing the end of your life anyway, you may have to do with less, or with nothing,” the Times writes. “You just aren’t worth the cost.… What nondescript GS-11 will be cutting care from Aunt Sophie after her sudden relapse before he or she heads to the food court for some stir fry?” The elderly, the physically and mentally disabled, all “whose health costs are great and whose ability to work productively in the future” will, the Times writes, be allowed to die or even exterminated. So will premature babies, badly wounded soldiers, and others as yet to be determined. The Times again cites Nazi Germany’s “T4 Aktion” program of forcibly euthanizing less productive citizens (see November 23, 2008) as a likely template for the Obama program. [Washington Times, 2/11/2009]
Sean Hannity, a Fox News host who also hosts a daily radio show, has conservative columnist Ann Coulter as a guest on his radio show. Coulter and Hannity warn listeners that President Obama wants to “tak[e] our guns and schools and doctors.” Coulter says: “[B]y the way, the NRA [National Rifle Association] also has information on how they [the Obama administration] are going to be expanding the concept of national parks to include, you know, highways running from Rhode Island to Virginia. National parks have gun bans imposed throughout.” Of the American Recovery and Reinvestment Act, the enormous Obama-backed economic recovery plan that includes large government-financed bailouts of several large corporations, Coulter says: “This bill is so much worse than earmarks and pork. This is a total government takeover, and Big Brother coming in and taking our guns and schools and doctors.” Hannity agrees with Coulter’s claims. [Media Matters, 4/9/2009]
Keli Carender, a Seattle blogger and Young Republicans member who is organizing a rally to protest the Obama economic stimulus package (see February 10, 2009), is interviewed on a local Fox News radio show hosted by Kirby Wilbur, a board member of the Young America’s Foundation. The YAF is one of the organizations that produces the Conservative Political Action Conference. Carender does not mention the interview on her blog, but some of those who comment on her posts mention the Wilbur interview. [Keli Carender, 2/10/2009; Huffington Post, 4/15/2009] Carender’s rally is later considered one of the seminal events in the nascent “tea party” movement (see February 16-17, 2009).
The salt marsh harvest mouse, currently receiving no funding from the Obama stimulus package. [Source: Environmental Protection Agency]Conservative opponents of the new stimulus package claim that the legislation allocates $30 million for saving the endangered salt marsh mouse, and would be spent entirely in House Speaker Nancy Pelosi’s (D-CA) district. The claim is part of a larger set of claims that the bill is “stuffed with Democratic pork” or “earmarks” (see January 23, 2009 and January 25-26, 2009). The claim is false, with Pelosi’s office calling it a “total fabrication” and examination of the bill finding no mention of any such funding allocation. The claim begins with an e-mail from an unidentified House Republican staff member, who claims that he was told by an unidentified federal agency source that if that agency were to receive stimulus money, it would spend “thirty million dollars for wetland restoration in the San Francisco Bay Area—including work to protect the salt marsh harvest mouse.” The e-mail identifies neither the agency nor the source, nor does it claim that the money is actually in the package. However, the story is quickly picked up and echoed by Republicans such as former Arkansas governor Mike Huckabee and Representative Mike Pence (R-IN), both of whom appear on Fox News stating the claim as unvarnished fact. Representative Dan Lundgren (R-CA) calls the supposed spending “absurd.” And House Minority Leader John Boehner (R-OH) asks how $30 million “for some salt marsh mouse in San Francisco is going to help a struggling auto worker in Ohio?” The Drudge Report makes the same claim. And the Washington Times runs an article entitled “Pelosi’s mouse slated for $30m slice of cheese.” The House staffer who circulates the e-mail later acknowledges that the claim, as stated by Huckabee, Lundgren, and others, is erroneous. “There is not specific language in the legislation for this project,” he admits. However, the staffer claims: “If the bill passes, the project will be funded according to what the relevant agency told our staff. The bottom line is, if this bill becomes law, taxpayers will spend 30 million on the mouse.” Pelosi’s staff says that the $30 million is for federal wetland restoration projects such as the California State Coastal Conservancy, none of which will be spent on the salt marsh mouse or even in Pelosi’s district. Pelosi spokesman Drew Hammill says: “There are no federal wetland restoration projects in line to get funded in San Francisco. Neither the Speaker nor her staff have had any involvement in this initiative. The idea that $30 million will be spent to save mice is a total fabrication.… This is yet another contrived partisan attack. Restoration is key to economic activity, including farming, fisheries, recreation, and clean water.” [Washington Times, 2/12/2009; Plum Line, 2/12/2009; Associated Content, 2/14/2009]
The new Director of National Intelligence (DNI), Dennis Blair, tells the Senate Intelligence Committee that the economic crisis, not global terrorism, is the biggest national security issue facing the US today. “The primary near-term security concern of the United States is the global economic crisis and its geopolitical implications,” Blair says. If the crisis continues for more than two years, Blair says, governments could topple, with all the unrest that would entail. About 25 percent of the world’s governments, mostly in Europe and among former Soviet Union client states, have already experienced “low-level instability,” including government changes, because of the economic climate (see February 1, 2009). Blair also warns of “high levels of violent extremism” as seen during the downturn in the 1920s and 1930s, along with “regime-threatening instability.” He explains, “Besides increased economic nationalism, the most likely political fallout for US interests will involve allies and friends not being able to fully meet their defense and humanitarian obligations.” US allies in Europe are angry over the Obama stimulus bill’s provision to “Buy American,” Blair notes, and says the provision is being used to question the US’s leadership in shoring up the global economy and international financial structure. The biggest beneficiary of this global chaos, Blair says, could be China, if that nation’s government can “exert a stabilizing influence by maintaining strong import growth and not letting its currency slide.” Global coordination is essential to rebuild trust in the financial system and to ensure that the crisis does “not spiral into broader geopolitical tensions,” Blair recommends. [EUObserver, 2/13/2009]
Unsuccessful House candidate Steve Beren (R-WA), now working for an Internet marketing firm, begins promoting a rally organized by Seattle blogger Keli Carender (see February 10, 2009). According to Beren, he became aware of Carender’s rally by hearing interviews with her on radio shows hosted by Kirby Wilbur (see (February 11, 2009)) and David Boze. An hour after Beren’s announcement, Carender announces that she will again be interviewed by Boze, and says Beren will speak at her rally. [Keli Carender, 2/12/2009; Steve Beren, 2/16/2009; Huffington Post, 4/15/2009] Carender’s rally is later considered one of the seminal events in the nascent “tea party” movement (see February 16-17, 2009).
House Minority Leader John Boehner (R-OH) accuses the Obama administration of colluding with Democrats to include a “high-speed rail system” from “Las Vegas [Nevada] to Disneyland” in the administration’s economic stimulus package. “Tell me how spending $8 billion in this bill to have a high-speed rail line between Los Angeles and Las Vegas is going to help the construction worker in my district,” he demands. [US House of Representatives, 2/13/2009]
Claim at Odds with Facts - Boehner is joined in the claim by several of his House Republican colleagues, including Patrick McHenry (R-NC), Thaddeus McCotter (R-MI), and Candice Miller (R-MI), as well as Republican Senators John McCain (R-AZ) and Jim DeMint (R-SC). Governor Bobby Jindal (R-LA) includes the claim in his response to President Obama’s address to Congress regarding the stimulus package. Many of these lawmakers add the accusation that the supposed rail line, which they call a “levitating train,” is an earmark inserted for Senate Majority Harry Reid (D-NV), whose state would benefit from the rail line. In reality, the stimulus bill does not set aside any money at all for a train of any kind between Los Angeles and Las Vegas. The bill does provide $8 billion for unspecified high-speed rail projects, which includes “magnetic levitation,” or maglev, train systems. The money will be allocated by Transportation Secretary Ray LaHood, one of two Republican holdovers from the Bush administration in President Obama’s cabinet. A Department of Transportation spokesperson says it is “premature to speculate” about what exactly will be funded; the nonpartisan Taxpayers for Common Sense says there is “no way that this provision is an earmark for Senator Reid.” The governors of Nevada and California—both Republicans—have indicated they would support such a maglev line between those two cities. The nonpartisan site FactCheck.org writes: “We can’t predict the future, and it’s certainly within the realm of possibility that the Republican who is Obama’s transportation secretary will decide to devote the entire $8 billion to a project that is nowhere near shovel-ready and that the Federal Railroad Administration says is not cost-effective—all for the benefit of the Democratic majority leader. But we wouldn’t bet on it.” [FactCheck (.org), 2/25/2009; New York Times, 2/25/2009] The Center for American Progress notes that Republicans mock the idea of “levitating trains” because, apparently, “they [think] the term sounds funny.” FactCheck observes, “In truth, ‘levitating’ trains really do exist—but they are properly called maglev trains, and they are high-tech marvels” employed in Japan, among other places. [FactCheck (.org), 2/25/2009; Think Progress, 3/2/2009]
Plans Include Ohio Lines - While there are no plans for a train line of any kind between California and Nevada in the stimulus package, there are at least two proposals for rail lines in and out of Ohio, Boehner’s state. The plans under consideration include a Cleveland-Toledo-Chicago line and a Cleveland-Columbus-Cincinnati-Indianapolis line. [Think Progress, 2/13/2009]
Train to Las Vegas Brothel? - In March, a Republican House member will claim that the supposed “levitating train” will not just go to Las Vegas, but to a brothel. The claim is entirely false (see March 2, 2009).
Entity Tags: John McCain, Ray LaHood, Taxpayers for Common Sense, John Boehner, US Department of Transportation, Thaddeus McCotter, Jim DeMint, Patrick McHenry, Federal Railroad Administration, Bobby Jindal, Candice Miller, FactCheck (.org), Center for American Progress, Harry Reid
Timeline Tags: Global Economic Crises
Nationally prominent conservative blogger Michelle Malkin promotes an anti-economic stimulus rally in Seattle being organized by an area math teacher, Keli Carender (see February 10, 2009 and February 12, 2009), writing: “There should be one of these in every town in America. What are you doing?” Malkin also posts a response from Carender expressing her gratitude at the mention, and adding: “I wanted to give the Coloradans some advice for gathering folks there, and believe me, you have the time. I got the permit for the park here on Tuesday, and now look, by Sunday, it is ALL OVER THE PLACE. I emailed everyone I knew. I emailed friend’s parents who I knew were Conservative, I emailed my parents’ friends, bloggers, etc. I called everyone I could think of, policy think tanks, ‘movers and shakers’ in the Seattle Republican Party, Conservative organizations, college professors, etc. (From this I have forged a relationship with the chairwoman of the National Black Republican Association who is going to write a statement for me to read, as she cannot get to Seattle on Monday.) I called local Conservative talk radio stations and they have been running it all week. I lived and breathed this thing for four days, which did cause me to miss a couple of things here and there, but it is totally worth it. Basically everyone, you just have to do it. Call up your police station or parks department and ask how you can obtain a permit, and then just start advertising. The word will spread. I am only one person, but with a little hard work this protest has become the efforts of A LOT of people. To the people who think this won’t help I say this: this protest will not stop the bill. I have no illusions that it could. I’m hoping for a few things though. One, that the Conservatives and Libertarians and Republicans in Seattle can finally meet each other and see they are not alone. There are actually quite a lot of us here, but we are very quiet, and that MUST STOP. We need to show that we exist. Second, we need to show support for the Republicans and Democrats that voted against the porkulus. If they think, for one second, that they made a bad choice, we have no chance to fight. Third, it sends a message to [President] Obama and [House Speaker Nancy] Pelosi [D-CA] that we are awake and we know what’s happening, and we are not going to take it lying down. It is a message saying, expect more opposition because we’re out here. That’s it! I hope everyone across the country can get something going too!!!” [Michelle Malkin, 2/15/2009; Huffington Post, 4/15/2009] Carender’s rally is later considered one of the seminal events in the nascent “tea party” movement (see February 16-17, 2009). Liberal blogger Jane Hamsher will note, “First [tea party] rally organized on a three week-old blog with help from folks from Fox News Radio, the Young Republicans, the Young America’s Foundation (CPAC—see (February 11, 2009)), and a GOP House candidate who works for an Internet marketing firm.” [Huffington Post, 4/15/2009]
Some of the protesters at the ‘Porkulus’ rally in Seattle. [Source: American Typo / Michelle Malkin]A rally in Seattle called “Porkulus,” a term popularized by conservative radio host Rush Limbaugh, draws about 100 participants. The rally is to protest the Obama administration’s economic policies. It is organized by area math teacher Keli Carender, who blogs under the moniker “Liberty Belle.” During the rally, Carender shouts, “We don’t want this country to go down the path to socialism!” eliciting “Hear, hear!” responses. She calls the government’s economic stimulus package (which Limbaugh has dubbed “porkulus”) “the reason we’re in this mess.” She also plays an audiotape of a speech by former President Ronald Reagan. Rally participant Connie White tells a reporter that Congressional Democrats are “ramming things through for their liberal agenda. I’m one of the poor. I used to be middle class. But I don’t want the government helping me.” Carender will become one of the area’s more prominent “tea party” organizers, and after she is brought to Washington, DC, for training by the lobbying group FreedomWorks, becomes part of the nationwide Tea Party Patriots organization. The next day, the day President Obama signs the American Recovery and Reinvestment Act, another “Porkulus” rally occurs in Denver, hours after Obama visits another site in the city to promote the bill. The Denver “Porkulus” rally is sponsored by Americans for Prosperity and the Independence Institute. The next day, CNBC commentator Rick Santelli performs his five-minute “impromptu” rant against the legislation, and calls for “tea party” protests to oppose it (see February 19, 2009). [Publicola, 2/17/2009; Institute for Research & Education on Human Rights, 8/24/2010]
Entity Tags: Tea Party Patriots, Rush Limbaugh, Independence Institute, Keli Carender, Americans for Prosperity, Barack Obama, Rick Santelli, Connie White, FreedomWorks
Timeline Tags: Global Economic Crises, Domestic Propaganda, 2010 Elections
Less than one month after his inauguration, President Barack Obama signs into law a $787 billion recovery package, stating that this will “set our economy on a firmer foundation.” However, Obama reiterates during the bill’s signing ceremony at the Denver Museum of Nature and Science that he will not pretend “that today marks the end of our economic problems, nor does it constitute all of what we have to do to turn our economy around. Today marks the beginning of the end, the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs.” The legislative battle on the bill ended with only three Republican votes in the Senate and none in the House. As president-elect, Obama initially expected to spend between $675 billion and $775 billion on the recovery package, and the final number is almost exactly that. However, Congress included $70 billion worth of tax cuts in the bill they approved, although more than a few economists say $70 billion in tax cuts won’t create as many new jobs as $70 billion in spending would. According to the government’s Recovery (.gov) Web site, the 2009 American Recovery and Reinvestment Act:
Saves and creates more than 3.5 million jobs over the next two years;
Takes a big step toward computerizing Americans’ health records, reducing medical errors, and saving billions in health care costs;
Revives the renewable energy industry and provides the capital over the next three years to eventually double domestic renewable energy capacity;
Undertakes the largest weatherization program in history by modernizing 75 percent of federal building space and more than one million homes;
Increases college affordability for seven million students by funding the shortfall in Pell Grants, increasing the maximum award level by $500, and providing a new higher education tax cut to nearly four million students;
Enacts the largest increase in funding of the nation’s roads, bridges, and mass transit systems since the creation of the national highway system in the 1950s;
Provides an $800 “Making Work Pay” tax credit for 129 million working households, and cuts taxes for the families of millions of children through an expansion of the Child Tax Credit;
Requires unprecedented levels of transparency, oversight, and accountability.
White House press secretary Robert Gibbs says Obama will seek additional stimulus/recovery funding if needed. [New York Times, 2/17/2009; recovery.gov, 2/17/2009]
Protesters in front of the Colorado State Capitol wave anti-Obama, pro-Ayn Rand signs and large ‘checks’ from the federal government representing ‘pork’ spending. [Source: People's Press Collective / Michelle Malkin]Hundreds of protesters gather on the steps of the Colorado State Capitol to protest President Obama’s signing of the economic stimulus legislative package (see February 16, 2009). The rally is organized by, among others, the Colorado chapter of Americans for Prosperity (see Late 2004, February 16-17, 2009, February 19, 2009 and After, and April 2009 and After), the Independence Institute, and blogger Michelle Malkin. Former House Representative Tom Tancredo (R-CO) is one of the speakers, along with a number of state and local Republican politicians. Malkin writes after the rally: “[H]opefully, [the rally] will spur others to move from the phones and computers to the streets. Community organizing helped propel Barack Obama to the White House. It could work for fiscal conservatism, too.” Liberal blogger Jane Hamsher later notes that the Independence Institute is funded by the Coors Foundation’s Castle Rock Foundation, which operates as something of a “mini Heritage Foundation in Colorado.” Beer billionaire and conservative financier Jeffrey Coors sits on the board of the Institute. Hamsher later writes, “According to Michelle Malkin, second rally organized by Koch/Americans for Prosperity, Coors/Independence Institute, former GOP congressman and Independence Institute fellow Tom Tancredo.” [Michelle Malkin, 2/17/2009; Huffington Post, 4/15/2009]
Conservative syndicated columnist Cal Thomas uses a recent editorial by health care industry lobbyist Betsy McCaughey (see February 9, 2009) to accuse the Obama administration of planning a “euthanasia” program to exterminate hapless Americans. President Obama’s economic stimulus plan, Thomas writes, “means the government will decide who gets life-saving treatment and who doesn’t. It is survival of the fittest in practice.” Thomas then writes that the Obama administration’s support of legal abortions will inevitably lead to “euthanasia” of older and less productive citizens. He quotes a 1979 book by theologian Francis Schaeffer and future Surgeon General C. Everett Koop, Whatever Happened to the Human Race? as saying, “Will a society which has assumed the right to kill infants in the womb—because they are unwanted, imperfect, or merely inconvenient—have difficulty in assuming the right to kill other human beings, especially older adults who are judged unwanted, deemed imperfect physically or mentally, or considered a possible social nuisance?” Thomas then writes, “No one should be surprised at the coming embrace of euthanasia.” Schaeffer and Koop’s prediction that “the next candidates for arbitrary reclassification as nonpersons are the elderly” now “seems to be coming true,” Thomas writes. He also repeats a claim from the 92-year-old Koop that in 1988, he had suffered from an ailment that temporarily paralyzed him. Under Britain’s government-run health care, Koop claims, “I would have been nine years too old to have the surgery that saved my life and gave me another 21 years.” Soon, Thomas writes, “dying will become a patriotic duty when the patient’s balance sheet shows a deficit.” [Tribune Media Services, 2/18/2009]
A rally against the Obama economic stimulus plan takes place in Mesa, Arizona, another in a spate of “porkulus” protests (see February 16-17, 2009 and February 17, 2009). The rally is organized by a talk-radio station, KFYI, owned and operated by Clear Channel, the nation’s largest radio ownership cartel. Former Congressman J.D. Hayworth (R-AZ) is a featured speaker and co-host. KFYI shock jock Bruce Jacobs, Hayworth’s fellow host, adds a flavor of racism to the event, pointing to Hispanic demonstrators and saying, “Look at how illiterate some of these illegals are.” [Huffington Post, 4/15/2009]
CNBC commentator Rick Santelli ‘rants’ about the Obama economic policies. [Source: CNBC / Media Matters]In what is purportedly an impromptu on-air “rant,” CNBC financial commentator Rick Santelli exhorts viewers to join in what he calls a “Chicago tea party” to oppose the Obama administration’s plans to bail out several large financial institutions. Santelli’s rant comes during CNBC’s Squawk Box broadcast. [CNBC, 2/19/2009; CNBC, 2/19/2009] Santelli’s “impromptu rant” is actually preceded by a number of “tea party” protests and activities, and some of the protests’ organizers claim to have given Santelli the idea for his on-air “tea party” statement (see After November 7, 2008, February 1, 2009, and February 16-17, 2009).
'It's Time for Another Tea Party' - Broadcasting from the Chicago Mercantile Exchange, Santelli tells viewers in part: “The government is promoting bad behavior. We certainly don’t want to put stimulus pork and give people a whopping $8 or $10 in their check and think that they ought to save it.… I have an idea. The new administration is big on computers and technology. How about this, Mr. President and new administration. Why don’t you put up a website to have people vote on the Internet as a referendum to see if we really want to subsidize the losers’ mortgages? Or would they like to at least buy buy cars, buy a house that is in foreclosure… give it to people who might have a chance to actually prosper down the road and reward people that can carry the water instead of drink the water? This is America! How many people want to pay for your neighbor’s mortgages that has an extra bathroom and can’t pay their bills? Raise their hand! President Obama, are you listening?… It’s time for another tea party. What we are doing in this country will make Thomas Jefferson and Benjamin Franklin roll over in their graves.” Santelli also compares the US to Cuba: “Cuba used to have mansions and a relatively decent economy,” he says. “They moved from the individual to the collective. Now they’re driving ‘54 Chevys.” [RightPundits, 2/19/2009] Santelli’s “tea party” metaphor is in reference to the Boston Tea Party, a Revolutionary War protest against taxation by America’s British rulers. [New York Daily News, 2/20/2009]
Financial Traders Are the 'Real Americans' - Santelli tells viewers that the “real” Americans are not the working-class citizens trying to pay mortgages larger than they can handle, but the stock traders and other members of the Chicago Mercantile, New York Stock Exchange, and other members of the financial industry. [Business Insider, 2/19/2009] Santelli says, “We’re thinking of having a Chicago Tea Party in July (see After November 7, 2008), all you capitalists that want to show up to Lake Michigan, I’m gonna start organizing.” [Institute for Research & Education on Human Rights, 8/24/2010]
Cheers and Applause - Behind Santelli, traders erupt in cheers and applause at his comments. [College News, 2/20/2009]
Active Promotion of the Video - Within hours, CNBC begins promoting the video of Santelli’s comments, calling it “the rant of the year” and posting it on YouTube and its own website. [CNBC, 2/20/2009]
Protests, Organizations Begin Forming - Within minutes of Santelli’s broadcast, “tea party” organizations and groups begin forming (see February 19, 2009 and After).
More Studied Response - Three days later, Santelli will explain the thinking behind his comments, saying: “America is a great country and we will overcome our current economic setbacks. The issues that currently face us and the solutions to correct them need to be debated, vetted, and openly studied. This should not be an issue about the political left or right. This is an issue of discourse on a topic that affects the foundation and principles that make our country great… free speech, contract law, freedom of the press, and most of all the legacy we leave our children and grandchildren.” [CNBC, 2/22/2009]
Human Rights Organization: 'Racial' Component to Santelli's Rhetoric - In 2010, a report by the Institute for Research & Education on Human Rights (IREHR) will say that “[a]n unstated racial element colored Santelli’s outrage over the Obama administration’s home mortgage rescue plan.” The report will explain that many of the “losers” responsible for the “bad loans” Santelli is criticizing were made by banks that “disproportionately targeted communities of color for subprime loans.” Santelli’s “losers” are largely African-American or Hispanic borrowers who had “been oversold by lenders cashing in on the subprime market. Their situations were worsened by derivatives traders, like Santelli, who packaged and re-packaged those loans until they were unrecognizable and untenable.” [Institute for Research & Education on Human Rights, 8/24/2010]
The media responds strongly to CNBC commentator Rick Santelli’s call for a “tea party” to oppose the Obama economic stimulus. [CNBC, 2/20/2009]
Santelli 'Equally Complicit' in Economic Crisis - Writing for College News, Jon Graef notes that Santelli has opposed virtually all of the Obama economic policies, including all the bailouts of the mortgage and automobile industries. He lauds Santelli for “embracing the democratic possibilities that the Internet allows,” but says that “Santelli and his ilk are equally complicit in the housing/finance crises as those who refused to live responsibly within their means. If Santelli doesn’t like the details of the mortgage bailout, then why is continuing to work in conjunction with an industry that received its own government bailout—and promptly spent it on press releases and product placement?” [College News, 2/20/2009]
'Mad as Hell' - Writer Jerome Corsi, who penned a lurid and highly inaccurate “biography” of President Obama before the 2008 election (see August 1, 2008 and After), notes that some are comparing Santelli’s rant to that of fictional news anchor Howard Beale in the movie Network, where Beale screams, “I’m mad as hell, and I’m not going to take this any more!” [WorldNetDaily, 2/19/2009]
'Investors Have It All Figured Out' - Market analyst Donald Luskin writes that Santelli “went a little bit berserk in his broadcast… warning that all the bailouts, programs, rescues, stabilizations, and stimuli are turning our capitalist nation into Cuba. He got the floor traders so stirred up it seemed for a minute there that an armed revolution was going to start at any moment.” Luskin continues, with at least some sarcasm: “Santelli is right. This country is being rescued to death. The voters may be fooled, for a while at least. But obviously investors have it all figured out.” [Smart Money, 2/20/2009]
'Santelli Hates Poor People' - The avant-garde Washington political gossip blog Wonkette calls Santelli “unlikable” for calling Americans forced to default on their mortgage “losers,” and calls his on-air rant “apesh_t.” Commentator Jim Newell continues, “Maybe Obama’s plan isn’t so great, who knows, but one thing is clear, and that’s that Rick Santelli hates poor people—and by poor people we mean the bottom 50-90 percent of per capita income earners.” [Jim Newell, 2/20/2009]
'Speaking Truth to Ego and the Far Left' - Financial blogger Thomas Smicklas writes that Santelli “sp[oke] truth to ego and the far left.… It is becoming more apparent each day of the new administration those who work hard, save, and are responsible citizens are getting hosed by the practice of class warfare.… Ladies and gentlemen, the politics of vote buying, legal extortion, and the re-distribution of wealth to the lazy and ill-educated has begun in earnest. And we haven’t even touched upon a deteriorating foreign policy. Thanks to CNBC’s Rick Santelli and the workers in the pit that deal in commodities who finally expressed it. We can all be grateful for the lesson.” [Thomas Smicklas, 2/20/2009]
Rewarding Those Who Caused the Bad Lending - The Huffington Post’s Jason Linkins writes that right-wing media figures such as Matt Drudge are “freaking out” over Santelli’s rant, “fomentin’ a revolution on the trading floor of the Chicago Mercantile Exchange. He’s assembled a small army of half-hearted, floor-trading broheims to cheer and hoot as he rails against President Obama’s plan to not immediately foreclose on everybody and kick them out into the streets, because that rewards ‘bad behavior,’ and clearly what we should be doing is rewarding people who incentivized all the risky lending, because until the house of cards collapsed, things were looking pretty for everybody!” [Huffington Post, 3/22/2009]
'Hysteria a la Fox News' - Columnist Mary McNamara calls Santelli’s rant “colorful,” but says Santelli’s “rhetoric/hysteria a la Fox News is damaging to national discourse.” The financial crisis has hit hardest, not in the businesses and mansions of the people Santelli works with, but in the working-poor and lower-middle class families. “They work hard,” she writes. “They weren’t buying luxury homes. Sure, there were a few speculators. But mostly, they just wanted a little piece of the American dream, especially good schools for their kids and closer proximity to their work.” [MultiChannel (.com), 2/19/2009]
'Money for Idiots' - Conservative columnist David Brooks refers to Santelli’s “lustily” delivered rant in defending the necessity for the government to stabilize an economy sliding into chaos. [New York Times, 2/19/2009]
'Pretty Awesome' - New York Magazine’s Jessica Pressler writes that she finds Santelli’s “call for revolution… pretty awesome.” She writes, “Santelli is pissed off about the Obama administration’s bailout measures so far, in particular the housing plan the administration announced yesterday, and he wants America to stand up and revolt before we turn into some kind of not-even-tropical version of Cuba.” [New York Magazine, 2/19/2009]
Favorable Coverage from Limbaugh, Hannity, Drudge - Associated Content’s Mark Whittington notes that Santelli’s rant is garnering tremendous coverage from conservative commentators Rush Limbaugh, Sean Hannity, and Drudge. “More importantly,” he writes, “Santelli’s attack on the Obama mortgage bailout scheme seems to reflect a growing disquiet over President Obama’s spending schemes, which started with the stimulus package, and will now not only include a bailout for mortgages but also a new bailout for the car companies and perhaps even a second stimulus.” [Associated Content, 2/19/2009]
'Almost Inciting a Riot' - Business Insider’s Joe Weisenthal observes: “CNBC’s RIck Santelli is always pugnacious, but he outdid himself today, almost inciting a riot among the traders in Chicago when talking about Obama’s housing plan. Suffice to say, the capitalists on the floor do not want to pay for anyone else’s mortgage. Neither do we. That being said, his insistence that these guys represent the ‘real America’ won’t ultimately play that well among most people.” [Business Insider, 2/19/2009] Progressive columnist and blogger John Amato calls himself “disgusted” at Santelli’s “embarrassing diatribe at the expense of the American people,” and writes that watching Santelli “made me realize that these Wall Street frat boys still don’t get it. America is sick and tired of the riches they have manipulated out of the system and then be lectured by people who make more money than 100 middle class workers put together.” Referring to Santelli’s experience as a trader in the high-risk derivative market, an area that many have blamed for causing much of the economic downturn, Amato writes sarcastically, “The next time I want advice on how to live I’ll be sure to ask a man who was deeply involved in ‘derivatives.’” He concludes: “Don’t blame the crooked mortgage lenders who were having bidding wars to acquire their next mansion, but blame first time buyers or average Americans, the lifeblood of our society and call them ‘losers.’ Santelli needs to own that he is the loser and if it wasn’t for the gasbag insider crowd that gives his words a modicum of respect, crowds would gather outside his home with torches and pitchforks.” [John Amato, 2/21/2009]
'Voice of the Silent Majority' - Progressive author and blogger Jane Hamsher writes: “Rick Santelli is just the explosive id of CNBC, saying what everyone else thinks. Somehow it’s not the pervasive institutional rot, the criminal malfeasance at the highest levels, or the chairman of the Federal Reserve telling Americans over and over again that housing prices would never go down. They have convinced themselves that the real problem is once again people at the absolute bottom of the economic scale. If they’d only used appropriate ‘judgment’ and lived within their means, we’d all be fine. Santelli is now being promoted by CNBC as a truth teller, a voice of the… ‘silent majority.’ ‘Would you join Santelli’s “Chicago Tea Party?”’ they want to know. With 170,000 respondents, 93 percent say yes! I guess it was only a matter of time before a hero emerged.” [Jane Hamsher, 2/20/2009; CNBC, 2/20/2009]
Entity Tags: Jessica Pressler, Thomas Smicklas, Sean Hannity, David Brooks, Jane Hamsher, Jerome Corsi, Donald Luskin, Rush Limbaugh, Jason Linkins, Obama administration, Jim Newell, Joe Weisenthal, Jon Graef, Rick Santelli, Mark Whittington, Matt Drudge, Mary McNamara, John Amato
Timeline Tags: Global Economic Crises, Domestic Propaganda
CNBC stock analyst Rick Santelli’s “impromptu” on-air “rant” against President Obama’s economic stimulus program, in which Santelli calls for a “tea party” protest and tells viewers he intends to begin organizing a “Chicago Tea Party,” galvanizes nascent “tea party” groups around the nation. Chicago radio producer Zack Christenson has already registered the Internet domain “chicagoteaparty.com” (see August 2008), and hours after Santelli’s rant Christenson puts up a “homemade” tea party Web site. A Chicago Libertarian activist, Eric Odom (see After November 7, 2008), puts up a similar site at “officialchicagoteaparty.com.” The next day, the short-lived “Nationwide Tea Party Coalition” forms. At the same time, a new Facebook group, “Rick Santelli is right, we need a Taxpayer (Chicago) Tea Party,” is created by Phil Kerpen of Americans for Prosperity, and is administered by Odom. The Facebook page leads back to a site called “taxpayerteaparty.com,” run by Americans for Prosperity. Simultaneously, Brendan Steinhauser, the campaign director of FreedomWorks (see March 2, 2009) and another administrator of the Facebook group, begins organizing “tea party” groups—or actually continues his efforts, since on February 9, 10 days before Santelli’s broadcast, he had contacted a Florida activist who had attended a FreedomWorks training session and asked her to organize a protest in Fort Myers. Steinhauser later writes that the day after Santelli’s broadcast: “I just wrote this little 10 quick easy steps to hold your own tea party, wrote it up, and kinda was proud of it and sent it to Michelle Malkin. She linked to it from her blog.” Malkin’s blog is overwhelmed by the response. FreedomWorks staffers call activists around the country asking them to organize “grassroots” tea party organizations, and on March 9, FreedomWorks announces a nationwide “Tea Party Tour,” saying in a statement, “From [Santelli’s] desperate rallying cry FreedomWorks has tapped into the outrage building from within our own membership as well as allied conservative grassroots forces to organize a 25-city Tea Party Tour where taxpayers angry that their hard-earned money is being usurped by the government for irresponsible bailouts, can show President Obama and Congressional Democrats that their push towards outright socialism will not stand.” By February 27, the first official “tea party” events take place, organized by the Sam Adams Alliance, FreedomWorks, and Americans for Prosperity. Many of the original organizations will eventually be subsumed by, or merge with, national structures, again primarily organized and funded by FreedomWorks, Americans for Prosperity, and other right-wing lobbying organizations. Eventually, six nationwide networks will form (see August 24, 2010). [Huffington Post, 4/15/2009; Institute for Research & Education on Human Rights, 8/24/2010] During this period, conservative media outlets such as the Weekly Standard will claim that the tea party movement was entirely spontaneous in its origins (see March 2, 2009). However, facts stand in the way of that claim (see February 15, 2009, February 16, 2009, February 17, 2009, February 18, 2009, March 13, 2009 and After, April 2009 and After, April 6-13, 2009, April 8, 2009, April 14, 2009, April 15, 2009, April 16, 2009, July 23, 2009, July 24, 2009, August 4, 2009, August 4, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 10, 2009, August 11, 2009, August 28, 2009, July 3-4, 2010, August 30, 2010, and September 20, 2010).
Entity Tags: Sam Adams Alliance, Zack Christenson, Weekly Standard, Rick Santelli, Nationwide Tea Party Coalition, Michelle Malkin, Barack Obama, Americans for Prosperity, Brendan Steinhauser, Eric Odom, FreedomWorks, Phil Kerpen
Timeline Tags: Domestic Propaganda
A day after CNBC’s Rick Santelli engaged in a “rant” against President Obama’s economic policies, and called for a modern-day “tea party” to protest those policies (see February 19, 2009), White House press secretary Robert Gibbs invites Santelli to the White House for coffee and to discuss Obama’s plan to help homeowners. “I’d be happy to buy him a cup of coffee,” Gibbs says. “Decaf.” Gibbs has said that Santelli needs to learn more about the economic bailout before engaging in such sharp criticism. “I’ve watched Mr. Santelli on cable the past 24 hours or so,” he says. “I’m not entirely sure where Mr. Santelli lives or in what house he lives but the American people are struggling every day to meet their mortgages, stay in their jobs, pay their bills, send their kids to school.… Mr. Santelli has argued, I think quite wrongly, that this plan won’t help everyone. This plan helps people who have been playing by the rules.… I would encourage him to read the president’s plan.… It’s tremendously important for people who rant on cable TV to be responsible and understand what it is they’re talking about. I feel assured that Mr. Santelli doesn’t know what he’s talking about.” Santelli, who has admitted to not reading the White House’s bailout proposals, tells CNBC viewers he “would love to accept” the invitation, but—holding a tea bag to the cameras—says he prefers “tea” to coffee. [CNBC, 2/20/2009; Politico, 2/20/2009; Think Progress, 2/23/2009; New York Times, 2/23/2009; Associated Press, 3/2/2009] Shortly thereafter, Santelli will say that he felt “threatened” by Gibbs’s reference to not knowing where he lives (see February 23, 2009).
President Obama names Earl Devaney to head the new Recovery Act Transparency and Accountability Board, a new agency designed to oversee the allocation and spending of the $787 billion economic stimulus plan. Devaney is a former Secret Service agent who, as the inspector general of the Department of the Interior, helped expose lobbyist corruption there; he will work closely with Vice President Joseph Biden, who will coordinate oversight of the stimulus spending. Devaney helped expose Republican lobbyist Jack Abramoff’s dealings with the Interior Department, and helped finger former Deputy Interior Secretary Steven Griles, who later pled guilty to charges of lying to Congress over his acceptance of bribes. Devaney also led an investigation of workers at the Interior Department’s Minerals Management Service, where he discovered what he called a “culture of substance abuse and promiscuity” at the Denver and Washington offices of the service. [Associated Press, 2/22/2009]
An Iraqi war widow. [Source: Johan Spanner / New York Times]Iraqi women, particularly war widows, have an extremely difficult time surviving in their country, according to a profile by the New York Times. Of Iraqi women between 15 and 80 years of age, 740,000, or around one in 11, are estimated to be widows; only about 120,000 of those widows receive any governmental aid.
Depressed Living Conditions - Many of the widows profiled by the Times live, either alone or with the remnants of their families, in a trailer park for war widows in a poor section of Baghgad. Many other widows are not so fortunate; the trailer park, which houses 750 people, is among the very few aid programs available for the widows. Many of those widows and their children live in public parks or inside gas station restrooms. The sight of war widows begging on the street—or available as potential recruits for insurgents—is an everyday occurrence.
Potential Insurgency Recruits - Times reporter Timothy Williams writes: “As the number of widows has swelled during six years of war, their presence on city streets begging for food or as potential recruits by insurgents has become a vexing symbol of the breakdown of Iraqi self-sufficiency. Women who lost their husbands had once been looked after by an extended support system of family, neighbors, and mosques. But as the war has ground on, government and social service organizations say the women’s needs have come to exceed available help, posing a threat to the stability of the country’s tenuous social structures.”
'Too Many' Widows to Help - Leila Kadim, a managing director in the Ministry of Labor and Social Affairs, acknowledges that the situation will not change soon. “We can’t help everybody,” she says. “There are too many.”
Alternatives - Some engage in “temporary marriages,” Shi’ite-sanctioned unions lasting anywhere from an hour to a year and usually based on sex, to become eligible for government, religious, or tribal leaders. Others have become prostitutes. Others have joined the insurgency in return for steady pay. The Iraqi military says dozens of women have become suicide bombers, and that number is expected to increase.
Minimal Government Assistance - The government’s current stipend for widows is an ungenerous $50/month and an additional $12/month for each child; efforts to increase that stipend have not made progress. And only about one in six widows receive that small amount of money. Widows and their advocates say that to receive benefits they must either have political connections or agree to temporary marriages with the powerful men who control the distribution of government funds. Samira al-Mosawi, chair of the women’s affairs committee in Parliament, says: “It is blackmail. We have no law to treat this point. Widows don’t need temporary support, but a permanent solution.”
Paying Men to Marry Widows - One solution has been proposed by Mazin al-Shihan, director of the Baghdad Displacement Committee. Al-Shihan has introduced a proposal to pay men to marry widows. When asked why money shouldn’t go directly to the widows, al-Shihan laughs. “If we give the money to the widows, they will spend it unwisely because they are uneducated and they don’t know about budgeting,” he says. “But if we find her a husband, there will be a person in charge of her and her children for the rest of their lives. This is according to our tradition and our laws.” [New York Times, 2/22/2009]
The Department of Health and Human Services rescinds the controversial “conscience rule” that allows health care workers to refuse to provide abortion counseling or other family-planning services if doing so would violate their moral or religious beliefs. The rule was announced on December 19, 2008 as one of the Bush administration’s final policy initiatives. Seven states have already challenged the rule in court, arguing that it sacrifices the health of patients to religious beliefs of medical providers. The American College of Obstetrics and Gynecology has reported numerous cases regarding the rule, including a Virginia mother of two who became pregnant after being denied emergency contraception, and a rape victim whose prescription for emergency contraception was rejected by a pharmacist. Obama officials say the administration will consider drafting a new rule to clarify what health care workers can reasonably refuse for patients. The public has 30 days to respond to the move before it becomes viable. Sister Carol Keehan, president of the Catholic Health Association, said in December that her organization supported the rule because in recent years “we have seen a variety of efforts to force Catholic and other health care providers to perform or refer for abortions and sterilizations.” However, opponents of the rule, including the American Medical Association, the National Association of Chain Drug Stores, and Planned Parenthood, said it could have voided state laws requiring insurance plans to cover contraceptives and requiring hospitals to offer emergency contraception to rape victims. It could also allow drugstore employees to refuse to fill prescriptions for contraceptives. And the Civil Rights Act of 1964 already offers broad protection against discrimination based on religion, mandating that an employer must make reasonable accommodations for an employee’s practices and beliefs. Cecile Richards of Planned Parenthood says, “Today’s action by the Obama administration demonstrates that this president is not going to stand by and let women’s health be placed in jeopardy.” [Chicago Tribune, 2/27/2009; New York Times, 2/27/2009]
Entity Tags: Catholic Health Association, American Medical Association, American College of Obstetrics and Gynecology, Carol Keehan, US Department of Health and Human Services, National Association of Chain Drug Stores, Obama administration, Cecile Richards, Civil Rights Act of 1964, Bush administration (43), Planned Parenthood
Timeline Tags: US Health Care
Washington Post columnist Greg Sargent writes that the current Republican plan of “total obstructionism” towards the Obama administration’s economic policies echoes the Republicans’ 1993 efforts to defeat the Clinton administration’s health care program (see December 2, 1993). In 1993, Republican pundit William Kristol warned that if the health care plan were successful and indeed improved the lives of Americans, the damage to the Republican Party’s image and ideology would be severe. Therefore, even though, according to Sargent, the plan stood an excellent chance of improving the US health care system, it had to be defeated. Sargent writes that today’s Republican opposition to President Obama’s economic plans “echo… the strategic objectives Kristol articulated 15 years ago.” Unfortunately, the Republican Party is far worse off “now than it was then in terms of being able to achieve those objectives.… Fifteen years later, of course, political conditions are dramatically different. Polls show the public broadly supports a far more activist role for government and backs Obama’s plans to expand the federal government’s role in a way not seen in decades. And it’s conservative ideas that are in retreat. Yet the GOP is pursuing roughly the same strategy today that it did then.” [Plum Line, 3/2/2009]
Fox’s Megyn Kelly. [Source: Huffington Post / 236 (.com)]Representative Trent Franks (R-AZ) builds on the false claim that Democrats want to build a “levitating train” from Los Angeles to Las Vegas as a favor to Senate Majority Leader Harry Reid (D-NV—see February 13, 2009 and After). Franks tells a credulous Fox News anchor that the train will not only go to Las Vegas, but to the door of Nevada’s most famous brothel, the Moonlight Bunny Ranch. Fox News anchor Megyn Kelly, repeating Franks’s claim, says: “It’s a super railroad, of sorts—a line that will deliver customers straight from Disney, we kid you not, to the doorstep of the Moonlight Bunny Ranch brothel in Nevada. I say, to the Moonlight Bunny Ranch brothel in Nevada. So should your tax dollars be paying for these kinds of projects?” Franks continues: “The majority leader of the US Senate, Harry Reid, has fought for this publicly and is committed to this project, even in the face of criticism.… If this is something that is truly the priority of the majority leader of the US senate, it’s pretty late in the day, Megyn.” No such earmark exists in either the stimulus package or Congress’s omnibus spending bill; when the Center for American Progress (CAP) asks Franks’s office to prove the claim, his staff refuses, and tells CAP to contact Reid’s office. There is a proposal to refurbish a historical rail line between Gold Hill, Nevada and Carson City, Nevada, a substantially different proposal than the “levitating brothel train” Franks claims is being proposed. (The Moonlight Bunny Ranch is actually in Carson City, which may explain the genesis of Franks’s claim.) Kelly asks Franks how politicians can be held accountable for such actions, and he responds, “Fortunately, people like yourself and Fox News are a tremendous help in that regard because they tell the people—you know, sunlight has a way of being an accountability all by itself” (see October 13, 2009). [Think Progress, 3/2/2009]
John Boehner (R-OH), the House Minority Leader, calls on the Obama administration to implement a freeze on government spending, and for President Obama to veto a $410 billion spending bill. Boehner says recent spikes in unemployment figures are a sign of a worsening recession, and the only way to address the recession is to freeze government spending until the end of the fiscal year. He calls the spending bill, crafted in December with input from Congressional Democrats and Republicans as well as from the Bush White House, full of wasteful “earmarks” and “pork.” [Associated Press, 3/6/2009] Boehner introduces a resolution calling for the freeze in the House; it fails, even though all House Republicans present for the vote and eight Democrats vote for it. [Human Events, 3/6/2008] Two days after Boehner’s call for a spending freeze, conservative columnist David Brooks calls the proposal “insane” and blames the influence of conservative talk show host Rush Limbaugh for the idea. Brooks says that Limbaugh and the Republican Party is fixated on repeating a Reagan-era economic agenda. “The problem with them and the problem with Limbaugh in terms of intellectual philosophy is they are stuck with Reagan,” Brooks says. “They are stuck with the idea that government is always the problem. A lot of Republicans up in Capitol Hill right now are calling for a spending freeze in a middle of a recession/depression. That is insane. But they are thinking the way they thought in 1982, if we can only think that way again, that is just insane. And there are a lot of Republicans like David Frum… who are trying to say Reagan was right for his era, but it is time to move on. And there are just not a lot of them on Capitol Hill right now, and I think the party is looking for that kind of Republican.” [Huffington Post, 3/8/2009]
Martha MacCallum. [Source: The Activity Pit]Fox News anchor Martha MacCallum, host of Fox’s “straight news” show The Live Desk, airs clips of Vice President Joseph Biden taken during a September 2008 campaign event to falsely imply that Biden is contradicting the Obama administration’s current stance on the economy. MacCallum tells viewers that “after weeks of economic doom and gloom, the Obama administration is now singing a slightly different tune. Take a look at what was said in recent interviews this weekend.” Fox then airs a clip of Biden telling an audience, “The fundamentals of the economy are strong.” The clip is not from an interview held over the weekend, but from a campaign event held seven months before. MacCallum does not inform her viewers of the timing of the clip, nor does she note that Biden was criticizing Republican presidential candidate John McCain’s economic views, which he characterized as unrealistically rosy. Instead, she goes on to claim that the administration has fundamentally, and dishonestly, shifted its views on the economy from a positive campaign outlook to a more “doom and gloom” viewpoint. In the September 2008 campaign rally, Biden told a Michigan audience: “I believe that’s why John McCain could say with a straight face, as recently as this morning—and this is a quote, ‘The fundamentals of the economy are strong.’ That’s what John says. He says that ‘we’ve made great progress economically’ in the Bush years.… I could walk from here to Lansing, and I wouldn’t run into a single person who thought our economy was doing well, unless I ran into John McCain.” Alongside the Biden clip, Fox also airs footage of Austan Goolsbee, a member of the White House Council of Economic Advisers. On March 15, Goolsbee told a Fox News Sunday audience that “the core strength of the economy is middle-class workers.” Fox airs that clip immediately after the Biden clip. What it does not air is Goolsbee’s statement just after the broadcast statement, in which he said, “Over the last eight years, before this president came into office, we saw an unbelievable squeeze on the middle class like nothing we have seen in decades.” MacCallum uses the clips to accuse the Obama administration of “singing… a bit of a different tune” now than during the campaign. [Media Matters, 3/16/2009] The next day, MacCallum apologizes for asserting the seven-month-old clip was recent. She tells viewers that Fox News “inadvertently used a piece of video of Vice President Biden saying that, quote, the fundamentals of the economy are strong. This video was from the campaign trail, when the vice president was a candidate, and was actually quoting Senator John McCain. When we get something wrong, we admit it. We did so yesterday, and for that, we apologize” (see October 13, 2009). [Media Matters, 3/17/2009]
Arguing against taxing corporate bonuses, Fox Business Network anchor Dagen McDowell compares such taxation to sexual abuse: “You don’t want to think if you get in bed with Uncle Sam he’s going to strip you naked, chain you to the bed, leave you there, and then take nasty pictures of you and then put them on the Internet. Because that’s what’s been happening.” Fox News correspondent Bill Hemmer calls McDowell’s remarks “well stated.” [Think Progress, 3/24/2009]
At least 19 Congressional Republicans, including House Minority Leader John Boehner (R-OH) and Senate Minority Leader Mitch McConnell (R-KY), say that the Obama administration’s “cap-and-trade” proposal would cost American families $3,128 apiece in extra taxes.
Misrepresenting an MIT Study - Boehner, McConnell, and their fellow Republicans base their claim on a 2007 MIT study. However, one of the study’s researchers, John Reilly, says that the Republicans are misreading it. According to Reilly, any tax burden on American families would not be felt until 2015, and the cost would be closer to $31 per person and $79 per year. The controversial claim originates in a Web posting by the House Republican Conference on March 24, which says: “The administration raises revenue for nationalized health care through a series of new taxes, including a light switch tax that would cost every American household $3,128 a year. What effect will this have on Americans struggling to pay their mortgages?” The St. Petersburg Times explains that the GOP’s “light switch tax” is a reference to President Obama’s proposal to tax power companies for carbon dioxide emissions, and allow companies to trade emissions credits among themselves. The program is called cap-and-trade. Republicans say the power companies would pass the tax on to electricity consumers, thus creating what they call a “light switch tax”—a term the Times calls misleading in and of itself. According to the MIT study, such a program would raise around $366 billion per year; Republicans divide that figure by the 117 million households in the US and get $3,128 in additional costs. Reilly says the Republicans are “just wrong. It’s wrong in so many ways it’s hard to begin.”
Corrected by Study's Author - And, Reilly says, he told House Republicans so when they contacted him on March 20. “I had explained why the estimate they had was probably incorrect and what they should do to correct it, but I think this wrong number was already floating around by that time.” Republicans also claim that the Obama administration intends to use cap-and-trade money to pay for what they call “nationalized health care,” a claim refuted by details of the program released by Obama officials. (House Republicans later amend this claim to say that the program will pay for “increased spending.”) The Times notes that Boehner rebuffs a second attempt by Reilly to correct the claim that the program will cost American households over $3,000 per year.
Further Falsehoods - Instead, nine other Republicans and the neoconservative Weekly Standard begin echoing the claim, with the Standard claiming that their figures show an annual cost of over $3,900 and accusing Reilly of “low-balling the cost of cap-and-trade by using some fuzzy logic.” Reilly says the Standard “just completely twisted the whole thing.… It’s false.” Senator Judd Gregg (R-NH) takes the claim even further, saying that the huge annual tax would be levied on “every living American.” Representative Paul Ryan (R-WI) restates the cost to $4,500 per family, and fellow House colleague Cynthia Lummis (R-WY) raises the rate to $4,560. Fox News correspondent Jim Angle reports Gregg’s claim without refutation or examination; on a later Fox broadcast, Gregg says, “every time you turn on your light switch, you’re going to be paying a tax.”
Denouncing the Lies - Reilly has written to Boehner and the Select Committee on Energy Independence and Global Warming to denounce the GOP’s distortion of the MIT study. Democratic Representative Earl Blumenauer (D-OR) accuses the Republicans of “using an intentional misrepresentation of the study,” and says: “One of the things I find most distressing is their repeated falsehood about somehow a $3,000 increase in taxes on the American people based on a research done by MIT. They talked about it four times again last night!… The fact is that in the budget we have an opportunity for people who want to be legislators not communicators to help us allocate how those benefits will be utilized.” [St. Petersburg Times, 3/30/2009; Think Progress, 4/1/2009; Think Progress, 4/2/2009]
Entity Tags: Judd Gregg, Mitch McConnell, Paul Ryan, Obama administration, John Reilly, Jim Angle, Cynthia Lummis, Earl Blumenauer, House Select Committee on Energy Independence and Global Warming, House Republican Conference, John Boehner
Timeline Tags: Global Warming, Global Economic Crises
Fox News host Sean Hannity and former House Speaker Newt Gingrich (R-GA) join to accuse President Obama of attempting to impose a “dictatorship” in America. Discussing the Obama administration’s plans to implement new financial regulations and oversight, Hannity begins by accusing Obama of “mov[ing] America down the road to socialism.” He asks Gingrich to “explain” to the audience “how dangerous this power grab is.” Gingrich responds: “We are seeing the biggest power grab by politicians in American history. The idea that they would propose that the treasury could intervene and take over non-bank, non-financial system assets gives them the potential to basically create the equivalent of a dictatorship.… Look, it absolutely moves it towards a political dictatorship.” [Think Progress, 3/26/2009]
House Minority Leader John Boehner (R-OH) produces a Republican alternative to the Obama administration’s $3.6 trillion budget proposal. Calling President Obama’s budget “completely irresponsible,” Boehner holds up a booklet on the floor of the House and says: “Two nights ago the president said, ‘We haven’t seen a budget yet out of Republicans.’ Well, it’s just not true because—Here it is, Mr. President.” Boehner calls the booklet a “blueprint for where we’re going.” However, the booklet contains almost no details and no actual numbers; the Associated Press calls it “a glossy pamphlet short on detail.” Boehner’s House colleague Paul Ryan (R-WI) says more details will be revealed next week. “We’re going to show a leaner budget, a budget with lower taxes, lower spending, and lower borrowing,” Ryan says. “Our plan curbs spending, creates jobs, and cuts taxes, while reducing the deficit,” says Boehner. When asked about specifics, including where the cuts would come from, Boehner tells a reporter, “We’ll wait and see next week.” [CNN, 3/26/2009; Associated Press, 3/27/2009]
Cutting Deficits, Lowering Taxes for Wealthy Americans and Working Class - The proposal does not specify how it would reduce the federal deficit. It does advocate heavy cuts in domestic spending and lowering tax rates: the Republicans propose reducing the 35 percent, 33 percent, and 28 percent tax brackets to 25 percent, which would result in significant tax cuts for wealthier Americans. The proposal would also reduce the tax rate for those making below $100,000 to 10 percent. Liberal analyst Matthew Yglesias notes, “It’s strange that the Republicans railing about long-term deficits seem to love long-term deficits when the point of the deficits is to further enrich the rich.” [Think Progress, 3/26/2009]
No Actual Numbers - Representative Mike Pence (R-IN) says “[i]t’s not likely” that the GOP budget will be adopted. However, Pence says he believes “that a minority in Congress plus the American people equals the majority.” Pence adds, “We intend to take our case for fiscal discipline, growth, and tax relief to the American people from sea to shining sea and if the American people will rise up, anything is possible on Capitol Hill.” White House press secretary Robert Gibbs laughs at the Republicans’ budget proposal, noting that the blueprint contains more pictures of windmills than charts. “It’s interesting to have a budget that doesn’t contain any numbers,” he says. “I think the ‘party of no’ has become the ‘party of no new ideas.‘… The administration is glad that the Republicans heard the president’s call to submit an alternative,” he says. “We just hope that next time it will contain actual numbers so somebody can evaluate what it means.” Obama’s proposal is likely to be modified by more conservative Democrats in the upcoming days. Senate Republicans later say that they do not intend to submit a specific alternate proposal to Obama’s budget, a decision that the Associated Press notes “spares them the need to make politically difficult choices.” [CNN, 3/26/2009; Associated Press, 3/27/2009] Asked about the proposal’s effect on the federal deficit by MSNBC correspondent Norah O’Donnell, Pence is unable to answer the question. O’Donnell asks: “So you don’t have the numbers now? About what your plan would be in terms of how it would cut the deficit or add to the deficit? You don’t have any numbers on that?” Pence attempts to duck the question: “Well, it’s really a broad—when the White House a few minutes ago was attacking the numbers in this bill, the tax cut numbers. There’s plenty of numbers in the Republican recovery plan. And we just really believe the president’s plan to raise taxes by nearly 2 trillion dollars on almost every American… deserves a debate on Capitol Hill.” O’Donnell responds, “[H]ow is your plan credible?” Pence replies: “Well, I thought through this morning, we didn’t have a plan, so it may be progress our plan is being attacked.… This is the broad outline.” [Think Progress, 3/26/2009]
'Marketing Document' - Five days later, Ryan will admit that the “budget proposal” being offered by Boehner is nothing more than a “marketing document” (see April 1, 2009).
Fox News host Glenn Beck, on his daily radio show, hosts US Representative Michele Bachmann (R-MN) to discuss her proposed constitutional amendment “to prohibit the president from entering into a treaty or other international agreement that would provide for the United States to adopt as legal tender in the United States a currency issued by an entity other than the United States.” Beck says to Bachmann: “I don’t want to believe that there are people in our country that would trash our dollar like this. And what’s going to happen is if you start to talk about a global currency, which I’m telling you, there’s no way out of what we’re doing now besides devaluing the dollar to pay off our debt and then have a new currency. There’s just no other way.… [W]hat happens is when you stand up, and when you say those things, then you’re deemed a kook. Then you’re deemed a militia member.” Bachmann says later in the interview: “The president is committing us so much now, and Congress is committing us to so much spending, that the only way out will be for him to continue to print money and have wild inflation. And once that collapses, then it’s a global currency. Well, then we are no more as a nation. We cease at that point.” Beck responds: “I believe it. But convincing everybody else may be a different story.” [Glenn Beck, 3/29/2009; Media Matters, 4/10/2009]
Dick Morris discussing the economy on Fox News. [Source: Fox News]Conservative political pundit Dick Morris tells a Fox News audience that the recent G20 economic summit advocated a “global approach” to the current economic crisis, and discussed putting both the Securities and Exchange Commission (SEC) and the Federal Reserve under the control of the International Monetary Fund—a position not advocated or discussed by anyone in the Obama administration. He worries that there will soon be what he calls “a supernational authority run by bureaucrats, not by elected officials, that will be telling the elected governments, including the United States, what its [economic] regulations should be.” President Obama is far more amenable to the idea of allowing a multinational authority to control the US economy, Morris insists, and adds that Obama intends to preside over what he calls “a global redistribution of income, downward,” using environmental policy as “an excuse.” “We’re about to meet Barack Obama the internationalist,” Morris continues, “not fighting for American interests, but looking for global coordination.” He concludes, “Those crazies in Montana who say, ‘We’re going to kill ATF agents because the UN’s going to take over’—well, they’re beginning to have a case.” [Media Matters, 3/31/2009]
Americorps/VISTA logo. [Source: Americorps]Congress sends the Edward M. Kennedy Serve America Act to President Obama, who will sign the act into law sometime in April. The bill passed both houses of Congress with large majorities. Senator Orrin Hatch (R-UT), who co-sponsored the Senate legislation, says the bill is “probably the most bipartisan bill we will see on the Senate floor this year.” House Republicans wrote in the House committee report: “[W]e applaud the inclusion of reforms that Committee Republicans have long championed to ensure that recipients of taxpayer funds are held accountable for results. We are pleased to join with the Majority in supporting bipartisan efforts to strengthen the national service laws and improve service delivery throughout the country.” The bill provides for the expansion of the AmeriCorps program from 75,000 to 250,000, creating new groups of volunteers focusing on health care, education, renewable energy, and veterans, and reauthorizing such AmeriCorps organizations as VISTA (Volunteers in Service to America) and the National Civilian Community Corps. The Kennedy Act also calls for awarding college students who complete a full-time national service job an “educational award having a value equal to the maximum amount of a Federal Pell Grant.” AmeriCorps says this would increase the amount its members receive upon completion of service from $4,725 to $5,350, which they can use to pay for school or pay back student loans. First Lady Michelle Obama says the bill is of particular concern to her, as volunteerism is one of her priorities. The legislation was originally known as the “Generations Invigorating Volunteerism and Education (GIVE) Act,” but senators renamed it in honor of ailing Senator Edward Kennedy (D-MA), who helped craft the bill. Kennedy says of its final passage in the House of Representatives: “Today’s House vote again demonstrates the high priority Congress gives to encouraging citizens of all ages in all communities across America to participate in public service. This legislation will enable many more Americans to do something for their country to meet the many challenges facing us. I look forward to the president signing this bill into law so that a welcome new era of national and community service can begin.” The bill also establishes September 11 as a national day of service. [New York Times, 3/31/2009; Annenberg Political Fact Check, 3/31/2009]
'Re-Education Camps' - Some Republican lawmakers, along with a variety of conservative pundits and radio show hosts, have claimed that the bill is far more sinister than it seems. House Representative Michele Bachmann (R-MN) says the bill will allow the Obama administration to create what she calls “re-education camps for young people…” Bachmann tells a Minnesota radio audience: “It’s under the guise of—quote—volunteerism. But it’s not volunteers at all. It’s paying people to do work on behalf of government.… I believe that there is a very strong chance that we will see that young people will be put into mandatory service. And the real concerns is that there are provisions for what I would call re-education camps for young people, where young people have to go and get trained in a philosophy that the government puts forward and then they have to go to work in some of these politically correct forums. [Minnesota Independent, 4/6/2009] The Annenberg Public Policy Center’s FactCheck.org receives numerous letters asking questions such as: “Is Congress creating a mandatory public service system? Are participants not allowed to go to church?” One writer tells FactCheck: “I have been getting all kinds of e-mails from people claiming that bill calls for mandatory service and in violation of our 13th amendment, and that I should call my congressman and tell them that this bill is modern day slavery. I have also received e-mails saying that service would still be voluntary and that the bill is just expanding current volunteer opportunities.… There is a lot of confusion out there right now regarding this very important legislation and was hoping you guys could shed some light.”
Debunking Claims - FactCheck reports, “The national service bill does not mandate that youth must participate nor does it forbid anyone who does participate from going to church.” It notes that many conservative pundits and bloggers have claimed that the bill “requires the government to draw up plans for a ‘mandatory service requirement for all able young people.’ Others say the bill forbids participants from attending church. These claims are false. Neither the House-passed bill nor the Senate-passed version says these things.”
'Mandatory Service Requirement?' - Bachmann and others have also claimed that the bill provides for a “mandatory service requirement for all able young people,” but that provision is not in any version of the bill. The original House bill did advance that as an idea worthy of study, and called for a “Congressional Commission on Civil Service” to “address and analyze” several topics, including “issues that deter volunteerism” and how they can be overcome, how expanding international public service might affect diplomacy and foreign relations, and “[w]hether a workable, fair, and reasonable mandatory service requirement for all able young people could be developed, and how such a requirement could be implemented in a manner that would strengthen the social fabric of the Nation.” The proposed commission would also investigate “[t]he need for a public service academy, a 4-year institution that offers a federally funded undergraduate education with a focus on training future public sector leaders.” However, that entire section was removed from the final bill. Hatch has confirmed that the bill contains no such provisions, saying on the floor of the Senate: “Consistent with our All-Volunteer Army and volunteer opportunities and individuals’ choice in communities, nothing in this legislation is mandatory. This bill simply provides more Americans more choices and opportunities to give back to their neighborhoods and their country all through the means which they freely choose.” The bill does provide for the inclusion of service-learning programs in public schools.
Church Attendance Prohibited? - Perhaps the most inflammatory claim is the one promulgated on conservative blogs and talk radio shows claiming that the bill would prohibit volunteers from attending church. FactCheck notes that such a provision “would be an incredibly draconian law—and a clear violation of the First Amendment right to freedom of religion, upon which this country was founded…” The claim seems to originate from the Jonas Clark Ministries, which has made Web postings and sent out mass e-mails claiming that the language of section 125 of the bill “prohibited activities and ineligible organizations,” and as such volunteers would be prohibited from attending church. The bill makes no such prohibition. It does, however, says that national service volunteers cannot attempt to “influence legislation,” organize “protests, petitions, boycotts or strikes,” promote “union organizing,” engage in “partisan political activities, or other activities designed to influence the outcome of an election to any public office,” and engage in “religious instruction, conducting worship services, providing instruction as part of a program that includes mandatory religious instruction or worship, constructing or operating facilities devoted to religious instruction or worship, maintaining facilities primarily or inherently devoted to religious instruction or worship, or engaging in any form of religious proselytization.” The language is virtually identical to what AmeriCorps and Senior Corps has told their volunteers for years. FactCheck writes: “In other words, public service activities can’t include anything overtly religious or political. And this is nothing new.” AmeriCorps spokesman Sandy Scott later tells FactCheck: “Both House- and Senate-passed bills codify long-standing regulatory restrictions on engaging in certain activities while ‘on-duty’ as an AmeriCorps member. They do not cover what individuals do on their own time at their own initiative.” [Annenberg Political Fact Check, 3/31/2009]
Entity Tags: Edward M. Kennedy Serve America Act, Edward M. (“Ted”) Kennedy, Annenberg Public Policy Center, AmeriCorps, Volunteers in Service to America, Barack Obama, Senior Corps, Orrin Hatch, Michelle Obama, Michele Bachmann, National Civilian Community Corps, Sandy Scott, Obama administration, Jonas Clark Ministries
Timeline Tags: Domestic Propaganda, 2010 Elections
A proposal by two Senators, Jon Kyl (R-AZ) and Blanche Lincoln (D-AR), to cut $250 billion in estate taxes for the children of multi-millionaires, garners what progressive think tank the Center for American Progress calls “a disturbing amount of support.” The New York Times writes that for Kyl and Lincoln: “[T]he most pressing [economic] issue is clear: America’s wealthiest families need help. Now.” The Kyl-Lincoln proposal would raise the estate tax exemption from $7 million to $10 million per couple and lower the top rate from 45 percent to 35 percent. Kyl, Lincoln, and other supporters say the estate tax cuts would protect small farms and businesses. This claim is refuted by the Center on Budget and Policy Priorities, which notes that “only 0.2 percent of the additional cost of the proposal, relative to [the Obama proposal for estate taxes], would go toward tax cuts for small businesses and farms.” Around $249.5 billion of that money would go to the inheritors of estates worth over $7 million. According to both the Times and the Center for American Progress, less than 0.3 percent of Americans would pay estate taxes under Obama’s proposal; only those households worth over $7 million. The Times observes: “In addition to creating the false impression that the estate tax eventually hits everyone—by mislabeling it a ‘death tax’—opponents routinely denounce the 45 percent top tax rate as confiscatory. In fact, the rate applies only to the portion of the estate that exceeds the exemption. As a result, even estates worth more than $20 million end up paying only about 20 percent in taxes. Another misleading argument is that the estate tax represents double taxation. In truth, much of the wealth that is taxed at death has never been taxed before. That’s because such wealth is often accrued in the form of capital gains on stocks, real estate, and other investments. Capital gains are not taxed until an asset is sold. Obviously, if someone dies owning an asset, he or she never sold it and thus never paid tax on the gain. If those arguments aren’t enough to stop the Lincoln-Kyl show, lawmakers should consider this: The estate tax creates a big incentive for high-end philanthropy, because charitable bequests are exempt.” [New York Times, 4/1/2009; Think Progress, 4/1/2009]
Republican Representative Paul Ryan (R-WI) admits that the “budget proposal” offered the previous week by the GOP in response to President Obama’s own budget proposal (see March 26, 2009) was never anything more than a “marketing document.” On MSNBC’s “Morning Joe,” Ryan says, “The thing you saw last week was not the alternative budget, this is our alternative budget.” Ryan is referring to a budget the GOP intends to release later today. The “budget” touted on the floor of the House by Minority Leader John Boehner (R-OH) was a “marketing document,” Ryan says. “Somewhere along the line there was a misimpression given that that was our budget.” In the Wall Street Journal, Ryan says the GOP budget will include the following:
A five-year non-defense spending freeze;
Cutting the deficit 50 percent more than Obama’s proposal by 2019;
More oil exploration and fewer regulations on pollution;
A revamping of Medicare for those currently below age 55;
Making permanent the Bush administration’s tax cuts for wealthy Americans, and a simplified tax code that taxpayers could choose to use.
Of President Obama’s budget, Ryan says, “If this agenda comes to pass, it will mark this period in history as the moment America turned European.” [The Hill, 4/1/2009] The Center for American Progress, a progressive think tank, says that a spending freeze as advocated by the GOP budget would be calamitous for the American economy. The freeze would negate the entirety of the Obama administration’s multi-billion stimulus package, and would rely entirely on economic recovery generated by supply-side tax cuts. MSNBC’s Chris Matthews compares the idea to the economic ideas that led to the Great Depression: “[I]t sounds very much like [former President Herbert] Hoover. This is a doctrine which was tried in 1932 and failed. In a period of international deflation, the worst thing you can do is join in the deflation by cutting spending.” [Think Progress, 4/1/2009]
Twice in the same broadcast, Fox News airs a segment called “FOXFacts” that echoes almost verbatim claims made in a Wall Street Journal op-ed written by Representative Paul Ryan (R-WI). Ryan appears for an interview on Fox News’s Happening Now, a “straight news” broadcast, hours after his editorial appears in print, and is interviewed by co-host Jon Scott. The seven “FOXFacts,” which appear on-screen during the interview, are nearly identical to the claims and even the wording of Ryan’s editorial. In February, Scott passed off a Republican press release as independently researched news, even to the point of repeating a typographical error from the press release (see February 10, 2009). Ryan and the accompanying FOXFacts claim that the Republican budget proposal achieves lower deficits than the Obama plan, prioritizes national defense and veterans’ health care, rejects Obama’s “cap-and-trade scheme,” makes permanent the 2001 and 2003 tax cuts for the wealthy, lowers capital gains and dividend taxes, repeals estate taxes, and slashes corporate income taxes. An hour later, while interviewing Rob Nabors, deputy director of the Office of Management and Budget, Scott again airs the same “FOXFact” graphics. [Media Matters, 4/1/2009; Media Matters, 4/1/2009; Wall Street Journal, 4/1/2009] Before appearing on Fox, Ryan admits to MSNBC host Joe Scarborough that the Republican “budget plan” is nothing more than a “marketing document” containing few specifics (see April 1, 2009).
Alisyn Camerota. [Source: Fox News]Several media outlets report discredited Republican claims that the Obama administration’s “cap-and-trade” global warming initiative would cost American taxpayers over $3,000 per year. Fox News anchors Eric Shawn and Alisyn Camerota (see October 13, 2009), CNN producer Ted Barrett, and the Washington, DC, newspaper Roll Call repeat the claim, which originated in a March 23 House Republican Conference (HRC) “talking points” press release. [GOP (.gov), 3/23/2009; Media Matters, 4/6/2009] The claim points to a 2007 study by the Massachusetts Institute of Technology, but one of the study’s authors, John Reilly, says the Republicans’ interpretation of it is wrong (see March 24 - April 2, 2009). Reilly says the average household cost of $3,128, as calculated by the HRC, is “nearly 10 times the correct estimate” based on his study’s cap-and-trade model. The HRC’s error is further shown by a March 30 analysis conducted by the St. Petersburg Times. [St. Petersburg Times, 3/30/2009; Media Matters, 4/6/2009] Both Reilly and the Times show that the average annual cost per household will be closer to $340. On Fox News’s America’s News HQ, Shawn claims “this cap-and-trade, or as the Republicans call it, cap-and-tax—could add $3,000 a year on our electric bills.… [T]hat’s about—$290 or so a month. I mean, imagine the American public, everyone watching right now—all of us—getting an extra 300 bucks or so a month tacked on to our utility bills.” Camerota tells viewers of Fox News’s America’s Newsroom that the cap-and-trade proposal “would be $3,100 per US household.” Roll Call’s Jay Heflin publishes a claim by Senator John Cornyn (R-TX) that “the effort equates to a ‘light switch tax’ of up to $3,128 each year for families” without informing readers of Reilly’s and the Times’s differing analysis. [Media Matters, 4/6/2009; Roll Call, 4/6/2009] Similarly, on CNN’s Political Ticker blog, Barrett repeats a similar claim, writing, “Senate Republican Leader Mitch McConnell praised the Senate for having ‘slammed the door on using the fast-track process to jam through a new national energy tax’ that Republicans say will cost families $3,000 a year in higher energy costs.” [CNN, 4/1/2009; Media Matters, 4/6/2009]
Entity Tags: Obama administration, Ted Barrett, St. Petersburg Times, John Reilly, House Republican Conference, Jay Heflin, Alisyn Camerota, John Cornyn, CNN, Fox News, Eric Shawn, Roll Call
Timeline Tags: Global Economic Crises, Domestic Propaganda
Fox News on-screen chyron falsely claiming Obama’s 2010 budget is four times larger than biggest Bush budget. [Source: Media Matters]Fox News’s flagship morning news broadcast, America’s Newsroom, displays an on-screen “chyron” that falsely claims the 2010 budget proposed by President Obama—$3.6 trillion—is four times the largest budget ever submitted by former President Bush. As progressive media watchdog Web site Media Matters notes, Bush submitted a $3.1 trillion budget for 2009 and a $2.9 trillion budget for 2008 (see October 13, 2009). [Media Matters, 4/3/2009]
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