Public Policy and Governance – Page 192

Rejecting The Enlightenment

And here I thought Scott Pruitt was just a bought-and-paid-for member of the “mafia” wing of today’s GOP. His long history of combatting environmental regulations while representing fossil fuel industries seemed adequate to explain his (toxic) presence in the Trump Administration.

Now, however, we discover that he is also a True Believer in the Pence mold. According to Politico, Pruitt has a history of statements that would do Pence and the rest of the “cult” wing of the party proud.

Environmental Protection Agency Administrator Scott Pruitt dismissed evolution as an unproven theory, lamented that “minority religions” were pushing Christianity out of “the public square” and advocated amending the Constitution to ban abortion, prohibit same-sex marriage and protect the Pledge of Allegiance and the Ten Commandments, according to a newly unearthed series of Oklahoma talk radio shows from 2005.

Pruitt, who at the time was a state senator, also described the Second Amendment as divinely granted and condemned federal judges as a “judicial monarchy” that is “the most grievous threat that we have today.” And he did not object when the program’s host described Islam as “not so much a religion as it is a terrorist organization in many instances.”

The six hours of civics class-style conversations on Tulsa-based KFAQ-AM were recently rediscovered by a firm researching Pruitt’s past remarks, which provided them to POLITICO on condition of anonymity so as not to identify its client. They reveal Pruitt’s unfiltered views on a variety of political and social issues, more than a decade before the ambitious Oklahoman would lead President Donald Trump’s EPA.

This is the man who is charged with safeguarding the nation’s air and water, the man whose agency is our first line of defense against climate change. Never before has the EPA been headed by a person who actively dismisses and ridicules science and scientific evidence.

When the taped conversations emerged, an EPA spokesman was asked whether Pruitt’s skepticism about evolution– one of the major foundations of modern science– could conflict with the agency’s mandate to make science-based decisions.

Spokesman Jahan Wilcox told POLITICO that “if you’re insinuating that a Christian should not serve in capacity as EPA administrator, that is offensive and a question that does not warrant any further attention.”

Obviously, that was not the “insinuation,” although I for one would agree that a person espousing Pruitt’s particular version of Christianity and its mandates should be kept as far away from the EPA as possible.

Some polls show that less than 30 percent of white evangelical Protestants believe that human activity is the driving factor behind climate change.

And Pruitt has echoed that sentiment, telling CNBC last year that he did not believe carbon dioxide was a primary contributor to climate change. Last week, he told the Christian broadcaster CBN News that he supports developing the nation’s energy resources, a stance that he believes aligns with Scripture’s teachings.

“The biblical worldview with respect to these issues is that we have a responsibility to manage and cultivate, harvest the natural resources that we’ve been blessed with to truly bless our fellow mankind,” he said.

To suggest that criticism of Pruitt is tantamount to saying that religion disqualifies people from heading the EPA is not only appallingly dishonest, it flies in the face of the agency’s history.

Pruitt isn’t the first EPA administrator to openly express his or her religious faith, of course. His immediate predecessor, Gina McCarthy, was a Roman Catholic who visited top officials at the Vatican in 2015 as church officials worked to write Pope Francis’ climate change encyclical. She oversaw the creation of the major climate change and water regulations that Pruitt’s EPA has started to unwind.

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Trump’s Economic Ignorance

One of the reasons I was a Republican back when that party actually existed was my belief in markets. I certainly understood that there are areas of the economy where markets don’t work–health care, for example–and I also understood the need for an “umpire”–regulations to ensure that competition occurs on that all-important level playing field. But with those caveats, I was–and remain– decidedly pro-market.

So was the GOP that used to be.

Last Thursday, Trump announced that he intends to impose tariffs on imported steel and aluminum; he evidently thinks that such tariffs fulfill his half-baked “America First” approach to trade.

Speaking at the White House, the president said he had decided to levy tariffs of 25 percent on foreign-made steel and 10 percent on aluminum.

The move prompted an immediate slide in the stock market, uniform condemnation by economists (you know, the people who actually understand how these things work–or more accurately–don’t), and threats of retaliation from the EU and Canada, among others.

The Washington Post reported that Trump had ignored warnings from members of his administration:

The president went ahead with the unexpected announcement even after Gary Cohn, his top economic adviser, reportedly threatened to resign. Treasury Secretary Steven Mnuchin told Trump that the stock market gains he loves to boast about would reverse themselves. Defense Secretary James Mattis, who he’s normally inclined to defer to, warned that this would hurt U.S. relationships with allies.

Companies that use steel and aluminum, including automakers, account for vastly more jobs than producers of the metals, and they argued that as many as 200,000 jobs were lost when George W. Bush imposed steel tariffs in 2002 that were later ruled to be illegal by the World Trade Organization.

Trump’s move, under a little-used national security provision of U.S. trade law, is expected to trigger legal challenges by China, the European Union and Brazil at the World Trade Organization. It also prompted predictions that it will backfire on American farmers and other exporters.

“It’s pretty much our worst fears,” said Rufus Yerxa, president of the National Foreign Trade Council, which represents multinationals such as Microsoft and Caterpillar. “This is a pretty clear indication that the Trump administration cares more about the old economy than it does the new economy.”

This wasn’t Trump’s first effort at protectionism; the announcement follows an earlier round of tariffs on solar panels and washing machines. Economic history tells us that all of these moves will lead to higher prices for consumers. The recent ones will raise costs for manufacturers who use steel and aluminum (automobiles and beer in cans come to mind), and they will pass those increased costs to consumers.

The tariffs will also cost American jobs; the earlier ones have already caused at least one U.S. company that imports solar panels to announce layoffs.

Trump’s anti-competitive moves aren’t the only reason columnist Catherine Rampell now dismisses the GOP’s long-professed support for markets.

Republicans say they favor free markets. They’re not like those pinko-commie Democrats, who prefer “picking winners and losers.”

Oh, come off it already.

Republicans love picking winners and losers, too. They just choose different winners and different losers than Democrats do. In the case of today’s Republican officials, the winners are mostly donors, incumbents, culture-war favorites and cheats.

Rampell points to Trump’s efforts to prop up the coal industry, and the “carve-outs” and other favorable treatment given to donors and Republican governors. And she is especially scathing in her criticism of the Georgia legislature.

Republican officials there vowed to punish Delta Air Lines, one of the state’s largest employers, for canceling discounted prices for National Rifle Association members.

Lt. Gov. Casey Cagle, who is running for governor, gave Delta an ultimatum: restore the NRA discount, or forget the $50 million sales-tax exemption on jet fuel that Republican lawmakers had been considering. In other words, restore our special discount, or we won’t give you your own special discount. Delta didn’t budge, so lawmakers axed the tax break Thursday afternoon.

It takes a funny formulation of free markets to punish a private company for not giving your favored political group a good price.

It is also a perversion of market economics–not to mention a blatant violation of the rule of law–to tip off your advisor and good friend Carl Icahn about your intentions, so that he can unload nearly $31.3 million in a steel-related stock company before the news hits.

The GOP to which I once belonged no longer exists. What goes under that name today is an unholy merger between a cult and the mafia.

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As The Bullets Find Their Mark..

I will never understand the GOP obsession with repealing Obamacare.

I could certainly understand efforts to improve it, or even replace it with a different mechanism (not the smoke and mirrors sort of replacement that Trump yammered about but was unable to describe, but a different way to deliver actual healthcare).

It is hard for me to accept that there are people who genuinely believe poor folks aren’t entitled to medical care, that being unable to afford a doctor means you don’t deserve one. On the other hand, I recall that telling–and chilling– moment in a GOP debate when Ron Paul was asked what should be done with people who don’t have insurance, and the audience members yelled “let them die.”

So there’s that…

Even though Paul Ryan and his cronies couldn’t manage a complete repeal of the Affordable Care Act, they did manage to make it less workable. They didn’t kill it–they just made it more incoherent and costly.

According to Michael Hiltzik in the L.A. Times,

Those fiscal geniuses in the White House and Republican-controlled Congress have managed to do the impossible: Their sabotage of the Affordable Care Act will lead to 6.4 million fewer Americans with health insurance, while the federal bill for coverage rises by some $33 billion per year.

Also, by the way, premiums in the individual market will rise by an average of more than 18%.

These figures come from the Urban Institute, which on Monday released the first estimate of the impact of two GOP initiatives. The first is the elimination of the individual mandate, which is an offshoot of the GOP tax-cut measure signed by President Trump in December. The measure reduced the penalty for not carrying insurance to zero as of next Jan. 1.

The second is Trump’s plan to expand short-term insurance plans, which don’t comply with many of the ACA’s essential benefits requirements and allow insurers to reject or surcharge people with preexisting medical conditions or histories.

Both of these provisions siphon younger, healthier people out of the insurance pool–an entirely foreseeable (and indeed, widely foreseen) consequence. When the pool of insured individuals contains older, sicker participants not offset by as many young healthy ones, insurers must raise premiums.

Because government premium subsidies rise in tandem with premium increases, the cost of subsidies borne by the government will rise by $33.3 billion next year, or 9.3% — to $391.4 billion from $358.1 billion under existing law.

It isn’t only taxpayers who will get hosed by the changes Trump is so proud of. The article goes through a variety of ways in which people needing health insurance will get screwed over, and I encourage you to click through and read the whole analysis.

It’s hard to disagree with Hiltzik’s conclusion:

The damage estimate can’t be restricted to the immediate impact on individuals and families, the researchers observed. “As healthier enrollees exit for short-term plans, insurers will by necessity reexamine the profitability of remaining in the compliant markets. This may well lead to more insurer exits from the compliant markets in the next years, reducing choice for the people remaining and ultimately making the markets difficult to maintain.”

In other words, the Republican sabotage will continue to undermine health coverage in the U.S. The only alternative, it becomes clearer with every day, is some form of single-payer, Medicare-for-all coverage. That’s increasingly becoming part of Democratic Party orthodoxy, and it’s about time.

One more reason why we need a wave election in November.

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It’s Going To Get Uglier

Last weekend, my husband and I attended the Phoenix Theatre’s presentation of Sweat, a prize-winning play based upon an episode of union-busting and outsourcing that took place some years ago in Reading, Pennsylvania. As with all Phoenix productions, the acting was superb, and the set evocative. But it was the play’s message that really resonated.

As workers in the local factories lost their jobs, social bonds frayed. Self-esteem suffered. Longstanding interracial friendships surrendered to suspicions that promotions had been awarded on the basis of “diversity” rather than merit. As with all powerful art, the play illuminated a human truth: in times of economic and/or social uncertainty–especially when livelihoods are threatened– people turn on each other.

Political scientists have varying explanations for the election of Donald Trump, but those explanations all include, to varying degrees, economic insecurity and racial resentment. A significant number of Americans are struggling to put food on the table. Automation is threatening the jobs of many others. The pace of social and technological change can seem dizzying. And rather than working to tackle these and other problems, the President and his henchmen are telling us to blame the Other: immigrants, Muslims, minorities.

A recent headline from the Guardian tells us that anti-Semitic incidents soared in 2017.

Antisemitic incidents in the US surged 57% in 2017, the Anti-Defamation League said on Tuesday, the largest year-on-year increase since the Jewish civil rights group began collecting data in 1979.

Close to 2,000 cases of harassment, vandalism and physical assault were recorded,

Another report tells us that we are in danger of reversing the civil rights advances of the last fifty years.

Civil rights gains of the past half-century have stalled or in some areas gone into reverse, according to a report marking the 50th anniversary of the landmark Kerner Commission.

Child poverty has increased, schools have become resegregated and white supremacists are becoming emboldened and more violent, the study says…..

Fred Harris, the last surviving member of the Kerner Commission, told Tuesday’s conference at George Washington University: “We made progress on virtually every aspect of race and poverty for nearly a decade after the Kerner report and then that progress slowed, then stopped and in many ways was reversed, so that today racial and ethnic discrimination is again worsening. We are resegregating our cities and our schools, condemning millions of kids to inferior education and taking away their real possibility of getting out of poverty.”

Harris, a former Democratic senator from Oklahoma and co-editor of the new report, added: “There are millions more poor people today than there were then. There’s greater child poverty; poverty’s harder to get out of. More poor people are in deep poverty than was true 50 years ago and income inequality is worse now and worsening.”

Last week, the Supreme Court heard a case that is very likely to eviscerate public-sector unions–the culmination of a decades-long, largely successful effort by the Koch brothers and their allies in the GOP to destroy workers’ ability to bargain. It is an effort that has gone hand-in-hand with their consistent and very effective attack on government programs that help needy Americans.

As Sweat vividly illustrated, poverty and powerlessness beget bigotry and social discord.

If voters don’t turn this country around in November, America will illustrate something else–Hobbes’ description of life outside society: solitary, poor, nasty, brutish, and short.

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‘Job Creators’ and the Tax Bill

According to the Republicans pushing for its passage, the recent, massive overhaul of the tax code was a “middle-class” tax cut. Yes, they admitted that it bestowed largesse on the wealthy, and yes, they recognized that the benefits to corporate taxpayers dwarfed the pennies that the poor and middle-class will realize, but that, they assured us, was because the GOP is all about job creation. Give corporations tax “relief” (not that most of them had been paying at the going rate) and they would use those dollars to create jobs.

Right.

Opponents of the tax bill publicly doubted that corporate savings would be used to create jobs, or to raise pay levels. They predicted that the money would be used instead to buy back stock and “reward” management with bonuses. And they pointed out that the meager tax relief granted to the middle class will phase out, while the corporate cuts are permanent.

Once the bill passed–and the Koch Brothers had donated $500,000 to Paul Ryan (a contribution I’m sure was merely coincidental, despite coming a mere two weeks after the measure was approved)–there was an initial flurry of publicity suggesting that ordinary workers at several large companies had been given bonuses. (It later turned out that those payments went to far fewer workers than the original publicity had suggested.)

Now, it turns out that the cynics were right all along. I know–you’re shocked.

After President Trump signed the Republican tax cut into law, companies put out cheery announcements that they were giving workers bonuses because of their expected windfalls from the tax reductions. The president and Republican lawmakers quickly held up these news releases as vindication for their argument that cutting the top federal corporate tax rate to 21 percent, from 35 percent, would boost workers’ incomes even as it added $1.5 trillion to the debt that future generations would have to pay off.

Now corporate announcements and analyst reports confirm what honest observers always said — this claim is pure fantasy. As executives tell investors what they intend to do with their tax savings and their spending plans are tabulated into neat charts and graphs, the reports jibe with what most experts said would happen: Companies are rewarding their stockholders.

Businesses are buying back shares, which creates demand for the stocks, boosts share prices and benefits investors. Some of the cash is going to increase dividends. And a chunk will go to acquiring other businesses, creating larger corporations that face less competition.

It isn’t just liberal pundits making these claims. Morgan Stanley analysts have estimated that 43 percent of the savings realized by corporations will be used for buybacks and dividends and another 19 percent will fund mergers and acquisitions. They calculate that 17 percent will go into capital investments, and a mere 13 percent will be used for bonuses and raises. CNBC reports that stock buy-backs are at a record pace. Axios has reported that nine pharmaceutical companies have announced $50 billion in buybacks since the tax law was passed.

The open question is whether voters whose paychecks are marginally fatter under the new withholding tables will believe they were the beneficiaries of this “reform,” and whether that belief will influence their votes in November.

As Lincoln said, you can fool some of the people some of the time….

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