Public Policy and Governance – Page 204

The World’s Worst Cabinet Is Also Corrupt

In the aftermath of Hurricane Maria, people in Puerto Rico are still suffering. Thousands are drinking polluted water, much of the island (they’re American citizens, President Trump, even though they’re brown) is still without power and many are without food and medicine.

To say that the federal government’s response has been inadequate would be kind.

They may not know how government works or what it’s for, but the Trumpsters sure do know how private “entrepreneurs” can use other people’s misery to make money. As Talking Points Memo (among many others) has recently reported,

A tiny Montana utility company that received a $300 million contract to help restore power to Puerto Rico after its electrical grid was devastated by Hurricane Maria is financed by major Trump donors and run by a CEO friendly with Interior Secretary Ryan Zinke, a series of recent reports has revealed.

The Puerto Rico Electric Power Authority’s granting of the huge contract to Whitefish Energy Holdings, a two-year-old company that reportedly had two full-time employees when the hurricane first hit, was first reported by the Weather Channel last week.

Both the Washington Post and the Daily Beast have offered intriguing–albeit nauseating– details on the company’s investors. The Post noted the “coincidence” that the firm is based in Interior Secretary Ryan Zinke’s hometown and that its CEO, one Andy Techmanski, is a friend of the Interior secretary. The Daily Beast reported that Whitefish’s general partner “maxed out” donations not just to Trump’s primary and general election campaigns, but also to a Trump super PAC.

I’m sure those generous contributions were just “coincidental” too.

Gee, why do you suppose that Whitefish–with all of two employees– was awarded the contract to restore electricity to hundreds of thousands of Puerto Rico residents? Zinke’s office and Techmanski both told reporters for the Post that the Interior secretary “played no role in securing the contract.” (And I have a bridge in Brooklyn I can sell you….)

After news of this “arms length” contract emerged, a number of publications pointed out that the type of work Whitefish will be doing is typically handled through what are called “mutual aid” agreements with other utilities, not by for-profit companies. Again, from Talking Points Memo,

“The fact that there are so many utilities with experience in this and a huge track record of helping each other out, it is at least odd why [the utility] would go to Whitefish,” Susan F. Tierney, a former senior official at the Energy Department told the Post. “I’m scratching my head wondering how it all adds up.”

In addition to Techmanski’s relationship with Zinke, Joe Colonnetta, partner at Whitefish and founder of HBC Investments, the private-equity firm that finances the energy company, is a significant power player in Republican politics, according to the Beast.

Colonetta donated a total of $74,000 towards Trump’s presidential victory and $30,700 to the Republican National Committee, the Beast reported. His wife, Kimberly, separately gave $33,400 to the RNC shortly after Trump’s win, and was photographed with Secretary of State Rex Tillerson and Secretary of Housing and Urban Development Ben Carson during inauguration week, per the report.

Daily Kos was–predictably– less circumspect.

In the midst of the disaster in Puerto Rico, it appears that someone may have engaged in graft as large as the hurricane that hit the island. Like other electrical utilities, the state-owned Puerto Rico Electric Power Authority has multiple mutual-aid agreements with other utilities. It can call on these agreements for help in repairing the power grid in an emergency. These are the same kind of arrangements that allowed utilities in Florida to get power there restored so quickly following the passage of Irma. But even though 79 percent of the island remains without power, PREPA isn’t calling on those agreements.

A constellation of companies, including those controlled by Tesla’s Elon Musk, have offered to work with Puerto Rico to transform the island into a model for the nation using a series of micro-grids, distributed solar, and local storage. The resulting system would be clean, flexible, and resistant to large-scale failure. But, so far at least, none of those companies have the nod to proceed.

Instead, PREPA has awarded $300 million to Whitefish Energy

Before getting this contract, Whitefish’s largest contract was to install a single electrical line less than five miles long. They had a year to do it.

This smells so fishy that even our supine Congress is launching a bipartisan investigation.

Is America great again yet?

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About White Populism

A few days back, I posted a blog praising George W. Bush’s recent speech decrying Trump’s bigotry. The responses were varied–some agreed that such a message coming from a former Republican President whose own tenure was unsuccessful (to put it mildly) was welcome. Others recited the multiple misdeeds of his administration as proof that nothing he could ever do should be considered praiseworthy.

There is a degree of partisanship that makes its adherents loathe to agree with any sentiment, no matter how anodyne, coming from the other “team”–a dogmatism that makes them unwilling to believe that agreement by one of “them” with a position of “ours” could possibly be authentic, let alone grounds for amicable discussion.

That’s too bad, because those partisans will miss an essay in the National Review that is well worth reading. I would be surprised if thoughtful political liberals wouldn’t approve of most of the points made.

A couple of examples:

Conservatives have a weakness for that “acting white” business because we are intellectually invested in emphasizing the self-inflicted problems of black America, for rhetorical and political reasons that are too obvious to require much elaboration…

Republicans, once the party of the upwardly mobile with a remarkable reflex for comforting the comfortable, have written off entire sections of the country — including the bits where most of the people live — as “un-American.” Silicon Valley and California at large, New York City and the hated Acela corridor, and, to some extent, large American cities categorically are sneered at and detested. There is some ordinary partisanship in that, inasmuch as the Democrats tend to dominate the big cities and the coastal metropolitan aggregations, but it isn’t just that. Conservatives are cheering for the failure of California and slightly nonplussed that New York City still refuses to regress into being an unlivable hellhole in spite of the best efforts of its batty Sandinista mayor. Not long ago, to be a conservative on Manhattan’s Upper East Side was the most ordinary thing in the world. Now that address would be a source of suspicion. God help you if you should ever attend a cocktail party in Georgetown, the favorite dumb trope of conservative talk-radio hosts.

We’ve gone from William F. Buckley Jr. to the gentlemen from Duck Dynasty. Why?

American authenticity, from the acting-even-whiter point of view, is not to be found in any of the great contemporary American business success stories, or in intellectual life, or in the great cultural institutions, but in the suburban-to-rural environs in which the white underclass largely makes its home — the world John Mellencamp sang about but understandably declined to live in.

Shake your head at rap music all you like: When’s the last time you heard a popular country song about finishing up your master’s in engineering at MIT?

There is much, much more, and I strongly encourage readers to click through and read the entire essay–not just because so many of the writer’s observations are dead-on, but because those on the political Left who identify strongly with other progressives and with the resistance to Trump and Trumpism need to remember that genuine conservatives also disdain the know-nothings and bigots who have appropriated the conservative label.

Before the GOP was taken over by conspiracy theorists, racists, religious fundamentalists and Big Money, principled Democratic and Republican political figures used to engage in civil conversation and even productive policymaking.

We will never recover the art of civil conversation, let alone policymaking intended to serve the public good, if we refuse to see any merit in anyone who doesn’t agree with us 100%. That sort of political intransigence–prominent among the GOP base and so-called “Freedom Caucus”–is what has destroyed the Republican party. Democrats shouldn’t emulate it.

Read the damn essay.

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When Evidence Isn’t Reliable

How do we know what we know? Who can we trust?

It’s bad enough that an American President constantly attacks reputable sources of information; when Trump asserts that reports unflattering to him are “fake news,” those assertions join–and bolster– widely-held doubts about the reliability of contemporary media. Those doubts are understandable; it is increasingly difficult to separate out the conspiracy-theory websites from legitimate digital newcomers, to recognize and discount sources trafficking in spin and outright propaganda, and even to distinguish between objective reporting and satire.

The unremitting assault on fact, on objective reality, makes the reliability of the information we get from government agencies more important than ever. When Scott Pruitt scrubs accurate science from the EPA website, he does more than degrade our efforts to protect the environment–he adds to the Alice-In-Wonderland nature of our shared reality.

Unfortunately, it isn’t just Scott Pruitt. The problem isn’t even limited to the Trump cabinet.

According to the Guardian (a very reputable source)

Over half of all police killings in 2015 were wrongly classified as not having been the result of interactions with officers, a new Harvard study based on Guardian data has found.

The finding is just the latest to show government databases seriously undercounting the number of people killed by police.

“Right now the data quality is bad and unacceptable,” said lead researcher Justin Feldman. “To effectively address the problem of law enforcement-related deaths, the public needs better data about who is being killed, where, and under what circumstances.”

This article underscores the importance of good journalism–the Harvard study used data compiled in the Guardian’s investigative reporting. It also illustrates the consequences of relying upon bad data.

Feldman used data from the Guardian’s 2015 investigation into police killings, The Counted, and compared it with data from the National Vital Statistics System (NVSS). That dataset, which is kept by the Centers for Disease Control and Prevention (CDC), was found to have misclassified 55.2% of all police killings, with the errors occurring disproportionately in low-income jurisdictions.

“As with any public health outcome or exposure, the only way to understand the magnitude of the problem, and whether it is getting better or worse, requires that data be uniformly, validly, and reliably obtained throughout the US,” said Nancy Krieger, professor of social epidemiology at Harvard’s Chan School of Public Health and senior author of the study. “Our results show our country is falling short of accurately monitoring deaths due to law enforcement and work is needed to remedy this problem.”

Interestingly, the researchers found that the accuracy of the data varied wildly by state, “with just 17.6% misclassification in Washington, but a startling 100% in Oklahoma.”

In 2015 the Guardian launched The Counted, an interactive, crowdsourced database attempting to track police killings throughout the US. The project was intended to help remedy the lack of reliable data on police killings, a lack that became especially visible after the 2014 unrest in Ferguson put policing in the national spotlight.

Other federal databases, including the Bureau of Justice Statistics’ (BJS) arrest-related death count and the FBI’s supplementary homicide reports were similarly criticised for severely undercounting police-related deaths. Both programs have been dramatically reworked since The Counted and similar media/open source databases forced officials such as the former FBI director James Comey to admit that newspapers had more accurate data than the government on police violence.

To state the obvious, policymakers cannot craft good laws or regulations in the absence of sound data. Citizens confronted with experiences at odds with government’s descriptions lose confidence in that government. Discrepancies between reality and government reporting feed conspiracy theories.

When we don’t know what we know, we cannot act.

Other than patronizing news sites we know to be trustworthy, there’s not much we can do about the proliferating media wannabes spouting fantasies and disinformation. But we should be able to insist that government agencies charged with compiling and disseminating factual data do so accurately. We aren’t likely to get that done in the Age of Trumpian Fantasy, but when the time comes to clean up the incredible chaos he is creating, a commitment to accurate data collection by government should be high on our cleanup list.

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In Praise of George W. Bush (No Kidding)

Where was this guy while Dick Cheney was running the country?

Granted, George W. Bush has been looking a lot better during the disaster that is Donald Trump…but I’m still dumbfounded (and awed) by his speech last week at the Bush Institute’s Spirit of Liberty event in New York.

A few quotations:

“Bigotry seems emboldened. Our politics seems more vulnerable to conspiracy theories and outright fabrication.”

“Bigotry in any form is blasphemy against the American creed and it means the very identity of our nation depends on the passing of civic ideals to the next generation. We need a renewed emphasis on civic learning in schools.”

“And our young people need positive role models. Bullying and prejudice in our public life sets a national tone, provides permission for cruelty and bigotry, and compromises the moral education of children.”

“The only way to pass along civic values is to first live up to them.”

“We’ve seen our discourse degraded by casual cruelty. At times, it can seem like the forces pulling us apart are stronger than the forces binding us together. Argument turns too easily into animosity. Disagreement escalates into dehumanization.”

“Too often we judge other groups by their worst examples while judging ourselves by our best intentions, forgetting the image of God we should see in each other. We’ve seen nationalism distorted into nativism, [and] forgotten the dynamism that immigration has always brought to America.”

In a further reproach to Trump–whose name he never uttered and who has dismissed the evidence–Bush also underscored the conclusion of all the American intelligence agencies about Russian interference in last year’s elections, calling it real and labelling it “subversion.”

Credit where credit is due: during his presidency, Bush never came across as a bigot, although he often failed to push back against his party’s use of bigotry and especially homophobia to win elections.

It is obviously easier for politicians who are not facing another election to call out Trumpism, as we’ve seen with John McCain and Bob Corker. But it is also easier to refrain from publicly defying a sitting President of one’s own party, easier to avoid setting an example that cannot help but shame the current leadership of that party. Easier to keep your head down and enjoy the accolades that come from being an “elder statesman.”

Bush’s broadside is so important because it is his party (or more accurately, what his party has become). Trump ran as a Republican. The House and Senate are controlled by Republicans. Admonitions from Democrats–even previous Presidents–will be dismissed by the party’s base as partisan carping.

As welcome as this speech was, the fact that Bush delivered it is an ominous sign of how worried responsible people are. Those who understand government, who recognize the challenges facing the country and the incredible damage being done to America’s democracy at home and our stature abroad, are speaking up, and we need to recognize how unprecedented that is.

Differences of opinion on policies would never prompt this behavior. Only a deep foreboding–a sense of existential crisis–can explain this departure from Presidential behavioral norms.

When George W. Bush feels it necessary to warn the country against Trump and Trumpism, we’re in trouble. Bigly.

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Listen To Nick Hanauer

Recently, I posted about the difference between tax cuts and tax reform, and why we need the latter but not the former. That argument was made–far more persuasively than I made it–by billionaire Nick Hanauer, in a recent post to Politico.

The Republican tax plan is a scam—a massive and destructive financial giveaway masquerading as pro-growth tax reform. Which is why our first response must be to demand not one penny of tax cuts for big corporations and rich guys like me. In fact, if I were Benevolent Dictator, I would substantially raise taxes on myself and my wealthy friends. Why? It is the only way to sustainably grow the economy, boost productivity, increase business opportunities, and create more and better jobs.

Hanauer takes aim at the central premise of GOP tax policy, what I have referred to as an “article of faith,” because when you take something on faith, it’s because you have no empirical evidence for its validity. In this case, as Hanauer points out, we have substantial evidence that the premise is fatally flawed.

There is is simply no empirical evidence nor plausible economic mechanism to support the claim that cutting top tax rates spurs economic growth. When President Bill Clinton hiked taxes, the economy boomed. When President George W. Bush slashed taxes, the economy ultimately collapsed. It wasn’t until after most of the Bush tax cuts expired during the Obama administration that the post-Great Recession recovery started to pick up steam—an ongoing recovery that, as uneven as it has been, has grown into one of the longest economic expansions in U.S. history.

And then, of course, there’s Kansas.

As we all know, and as Hanauer reminds us, Kansas dramatically “underperformed ” the rest of the country in economic growth and job creation after Sam Brownback, its “true believer” Governor, slashed taxes on individuals and corporations. And as he also reminds us, California, which horrified those true believers when it imposed the nation’s top income tax rate, has thrived. By 2015, California had the fastest-growing economy in the nation. Kansas? Dead last.

For several years, Hanauer has been arguing that Republicans have the economic argument exactly backwards–that inequality, not high tax rates, retards economic growth and job creation.

But the Republicans’ problem is that they have economic cause and effect reversed: Low wages and rising inequality are not symptoms of slow growth, low wages and rising inequality are the disease that causes slow growth—and inequality cannot be cured by creating even more inequality. In reality, our modern technological economy is best understood as an evolutionary feedback loop between innovation and demand. Innovation is the process through which we evolve new solutions to human problems, while consumer demand is the mechanism through which the market selects and propagates successful innovations. And it is economic inclusion—the full participation of as many people as possible in as many ways as possible, as innovators, entrepreneurs, workers and robust consumers—that drives both innovation and demand. The more we invest in the American people—in our wages, our education, our health care and our infrastructure—the more dynamic that feedback loop, and thus the faster and more prosperous our economy grows.

As I tell my students, if you own a widget factory, and no one is buying your widgets, you are unlikely to hire more workers to increase widget production. When consumers lack disposable income with which to buy your widgets, you cut back–or stop making widgets entirely.

As Hanauer explains:

The real problem with our economy is that we are concentrating wealth in the hands of people who aren’t spending or investing it, while starving working- and middle-class Americans of the ability to invest in themselves—not to mention sapping the consumer spending power that accounts for 70 percent of GDP. We rich Americans may not all be idle, but these days, much of our money is—and you will not get it flowing back through the economy again by cutting our taxes even further. I already earn about 1,000 times more per hour than the average American, but I couldn’t possibly buy 1,000 times more stuff. I only own so many pairs of pants. My family and I can only eat three meals a day. We enjoy a luxurious lifestyle, but we already own several houses, a private jet and one too many yachts (turns out, the optimal number is two). Cutting our taxes will make us richer, but it won’t incentivize me or my venture capital partners to spend or invest more than we already do. What’s holding us back isn’t a shortage of cash, but rather a shortage of demand—from you.

Exactly.

Thank you to everyone who wished me a happy birthday yesterday. It was much appreciated!

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