Category Archives: Random Blogging

Bought And Paid For….

As I have previously noted, I am a capitalist, an advocate of market economics.

Most members of today’s GOP are not.

In order to work properly, genuine capitalism requires regulation. Much as I hate sports analogies, this one fits: just as you cannot have a fair sporting contest without referees/umpires, you cannot have a working market economy without rules that ensure a level playing field. (You also have to distinguish between areas of the economy in which markets work and areas–like healthcare– where they don’t, but that is a subject for a different post.)

When people with little or no bargaining power have little or no choice but to do business with large, powerful institutions, government has an obligation to insure that the powerful are not taking advantage of the powerless. And that brings me to yesterday’s Senate vote to protect Wall Street from those annoying people from whom they profit .You will not be shocked to find that Mike Pence (a wholly-owned subsidiary of the Koch brothers) cast the deciding vote.

Vice President Pence cast a tie-breaking vote late Tuesday to block new regulations allowing U.S. consumers to sue their banks, handing Wall Street and other big financial institutions their biggest victory since President Trump’s election.

The rules would have cost the industry billions of dollars, according to some estimates. With the Senate’s vote, Wall Street is beginning to reap the benefits of the Trump administration focus on rolling back regulations it says are strangling the economy. The vote is also a major rebuke of the Consumer Financial Protection Bureau, which wrote the rules, and has often found itself at odds of Republicans in Congress and the business community.

The issue is that fine print in the agreements that we consumers have to sign when we apply for credit cards or bank accounts– fine print that requires us to settle any disputes that may subsequently arise through arbitration, in which a third party generally favorable to the Big Guys rules on the matter, rather than going to court or joining a class-action lawsuit.

The CFPB rule would block mandatory arbitration clauses in some cases, potentially allowing millions of Americans to file or join a lawsuit to press their complaints.

After more than four hours of debate, the Senate voted 51 to 50 to block its implementation. Pence was forced to cast the deciding vote shortly after 10 p.m. when two Republicans, Sens. Lindsey Graham of South Carolina and John Kennedy of Louisiana, opposed the resolution. House Republicans already passed legislation to block the rule, which now needs the approval of President Trump.

“Tonight’s vote is a giant setback for every consumer in this country. Wall Street won and ordinary people lost,” CFPB Director Richard Cordray said in a statement minutes after the vote. The legislation “preserves a two-tiered justice system where banks can have their day in court but deny their customers the same right.”

Proponents of the roll-back trotted out the “usual suspects”–those slimy lawyers and their class-action lawsuits–and pretended that the rule wouldn’t really protect consumers and that it would infringe on our freedom to contract. (Because you can always negotiate your credit card terms with MasterCard…) There may be some lawyers who abuse the system (although courts have ways of punishing such abuses), but class action lawsuits are a very important tool for justice. They’re one of the very few ways consumers can force changes to unethical and predatory business practices.

Class action lawsuits allow large groups of people to seek small amounts they individually wouldn’t have time or money to pursue. Large companies employing legally questionable practices rely on the ability to make a lot of money by cheating individual consumers just a little, not enough to justify hiring a lawyer and bringing an individual suit.

Reading about the Senate vote, my husband asked me why any Senator would vote to roll back the rule. I suggested he look at where those Senators’ campaign contributions came from.

If markets are for buying and selling, the Senate is evidently a thriving marketplace.

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This May Explain Some Things….

Not that the explanation is reassuring. Quite the contrary.

Vox recently ran an article about the healthcare perks that members of Congress enjoy while they are working hard to deny poor Americans access to basic health insurance. Here’s the WTF section of that article:

Mike Kim, the reserved pharmacist-turned-owner of the pharmacy, said he has gotten used to knowing the most sensitive details about some of the most famous people in Washington.

“At first it’s cool, and then you realize, I’m filling some drugs that are for some pretty serious health problems as well. And these are the people that are running the country,” Kim said, listing treatments for conditions like diabetes and Alzheimer’s.

“It makes you kind of sit back and say, ‘Wow, they’re making the highest laws of the land and they might not even remember what happened yesterday.’”

The article noted that the current Congress is the oldest in our history. It appears that more than half of the senators who plan to run for reelection in 2018 are over 65. (Dianne Feinstein just announced that she plans to run for another 6 year term; she will be 85 at election time.) The average age in the House of Representatives is a (comparatively) youthful 57, and the average age in the Senate is 61.

We all age at different rates, and thanks to breakthroughs in medicine and nutrition there are growing numbers of people nearing 100 who remain mentally and physically sharp. It is also true that most of us begin to figure life out as we grow older–there is some validity to the adage that wisdom comes with age. So I would oppose a blanket rule requiring lawmakers to retire at an arbitrary age certain.

That said (since today is my own birthday, and at 76 I am by no means a “spring chicken”), I can personally attest to the indignities the years bring. Memory and recall play tricks on the aging mind; the accelerating rate of technological change is especially disorienting to those of us who grew up with typewriters and rotary phones affixed to walls. Cultural changes embraced by our children and grandchildren can be difficult for us old folks to assimilate and accept.

And all of that is what aging does to healthy seniors, those of us who have retained substantial amounts of our physical vigor and intellectual capacities.

One positive consequence of the 2016 election–assuming we live through the disaster that is Donald Trump–is a new appreciation of the importance of a President’s mental health. It is likely–again, if we survive this–that along with a mandatory disclosure of taxes, a clean bill of physical and mental health will become legal requirements of presidential candidacies.

We need to seriously consider imposing a similar requirement on candidacies for the House and Senate. It’s bad enough that we have only cursory background checks for gun purchases; surely, voters are entitled to similarly cursory physical and psychological checks on people seeking positions where they can do considerably more harm than a deranged shooter.

We may not be able to disqualify the wackos like Roy Moore, but surely we can make Alzheimers a disqualification for public office.

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Tyranny Of The Minority

A recent op-ed in the Washington Post revisited what has become an interminable discussion: why, when poll after poll shows a majority of Americans in favor of stricter gun laws, has Congress not responded? When it comes to guns, why are our Representatives so unrepresentative?

The authors–E.J. Dionne, Norman J. Ornstein and Thomas E. Mann— acknowledge the outsized influence of the NRA, but then they make a crucial point about American governance today.

But something else is at work here. As we argue in our book, “One Nation After Trump,” the United States is now a non-majoritarian democracy. If that sounds like a contradiction in terms, that’s because it is. Claims that our republic is democratic are undermined by a system that vastly overrepresents the interests of rural areas and small states. This leaves the large share of Americans in metropolitan areas with limited influence over national policy. Nowhere is the imbalance more dramatic or destructive than on the issue of gun control.

Michelle Goldberg made much the same point in a recent column for the New York Times, titled “Tyranny of the Minority.”

The Republican Party has essentially become a majority party through minority rule. Accounts of the growing resistance to Trump often ignore the ways in which Republicans have shaped the rules of the game in their favor (you could almost called it “rigged,” to use one of the president’s favorite words). The authors write: “Our system is now biased against the American majority because of partisan redistricting (which distorts the outcome of legislative elections), the nature of representation in the United States Senate (which vastly underrepresents residents of larger states), the growing role of money in politics (which empowers a very small economic elite), the workings of the Electoral College (which is increasingly out of sync with the distribution of our population) and the ability of legislatures to use a variety of measures, from voter ID laws to the disenfranchisement of former felons, to obstruct the path of millions of Americans to the ballot box.”

The vast over-representation of rural areas and small states would be less troubling if there were not a substantial and growing divide between the political preferences and social attitudes of rural and urban Americans. That divide–illustrated by political maps showing blue cities in red states–means that the over-representation of rural Americans gives Republicans an unwarranted and unearned electoral advantage.

There’s a famous anecdote (probably apocryphal) in which a woman asks Benjamin Franklin what sort of government the founders had created, and Franklin responds “A republic, madam, if you can keep it.”

America’s founders were (rightly) concerned with the tyranny of the majority; they worried about the effect of “popular passions” on the exercise of individual rights. Those concerns were– and remain–valid. What they failed to foresee was the situation accurately described by these and other writers, a time when–thanks to urbanization, technology and rabid partisanship– the United States would be neither a democracy nor a republic.

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Talking About What We Understand

One of the bloggers I follow is Doug Masson, a thoughtful and impressively erudite observer of the circus that is current American politics. I was especially struck by his recent post on the humanitarian crisis in Puerto Rico, and mainland American preoccupations.

Puerto Rico is suffering. Like a lot. 3.4 million Americans have been without power for 5 days and the prospect of getting the electric grid up and running seems to be distant. 90% of the distribution system may have been destroyed. 91% of cellphone sites are also out of service, according to the FCC.

Despite this crisis, I’ve been hearing more about whether football players will stand or kneel during a game. Judging from the emotional energy spent online during the past couple of days, the manner in which sports professionals choose to observe the national anthem and conduct their protest is more alarming than the prospect of 3.4 million Americans facing a humanitarian crisis. Hell, I’m guilty of knowing and talking more about Kaepernick than what’s going on in San Juan which is, by the way, the only Puerto Rican city I can name without looking at a map.

Masson is certainly not alone in pointing out the difference in what I might call the “emotional investment” in these two issues. He is, however, the only one to point out a disquieting reason for that difference: something he identifies as the “bike shedding effect.” That is a term I had not previously encountered (and I’m not entirely clear on its derivation even after reading his post). Masson shares an illustration:

He provides the example of a fictional committee whose job was to approve the plans for a nuclear power plant spending the majority of its time on discussions about relatively minor but easy-to-grasp issues, such as what materials to use for the staff bike shed, while neglecting the proposed design of the plant itself, which is far more important and a far more difficult and complex task.

This example really hit home, because it was reminiscent of an experience my husband shared with me some twenty years ago. He was the architect for a new school building, and he was presenting the preliminary plans at a school board meeting. He anticipated a number of significant questions about the design–everything from room sizes to emergency exits to features affecting pedagogy–but the only discussion the board engaged in centered on the size of the elevator for handicapped individuals, and whether it should be large enough to accommodate one wheel chair or two.

The Board spent over an hour on that issue. No other was raised.

My husband was dumbfounded. On his way out of the meeting, he ran into a friend and shared his befuddlement; the friend–who was pretty savvy–just smiled and said, “You know, people talk about what they can understand.”

As Masson goes on to explain in his post, it’s relatively simple to form an opinion about what respect for the flag entails (and whether and how people of color should complain when the country doesn’t live up to its ideals). Whether those attitudes are knee-jerk or considered, they’re relatively straightforward.

Puerto Rico is another matter. Significant numbers of mainland Americans aren’t even aware that Puerto Ricans are American citizens (I have my doubts whether Trump knew that before the hurricane–after all, they’re brown people). Relatively few of us have traveled there, have relatives there, know much about it, or know what FEMA is or should be doing in the face of massive devastation.

So we talk about what we (think we) understand. That’s rather obviously what Trump is doing with his diatribes against the NFL.

The problem is, as America’s problems mount, it becomes very clear that there are so many pressing, important issues that most of us don’t understand. (Guess what! Obamacare and the ACA are the same thing…) But rather than informing ourselves about them–we focus on  recent TV shows, or an outrageous celebrity, or “those people” who disagree with us.

And then we wonder why democracy doesn’t work.

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