Balanced Budgets And Tax Caps

For years, it has been a GOP article of faith that the United States should pass a balanced budget amendment. Here in Indiana, Republican Governor Mitch Daniels was the driving force behind the “constitutionalization” of tax caps–adding a measure to the state’s constitution limiting state and local government’s taxing power.

Fortunately, wiser heads prevailed in Congress, and the federal government retained authority for the massive deficit spending needed to ease what will certainly be a major recession or a depression in the wake of the Covid-19 pandemic.

Here in Indiana, we weren’t so lucky; Mitch Daniels successfully curried voter favor by decimating the ability of cities to adequately fund services and hobbling the state’s ability to meet unanticipated crises.

The average voter doesn’t recognize the different functions of constitutions and statutes, or understand why specific tax provisions of this sort don’t belong in the former.  Most Hoosiers thought it was a good idea to place tax caps in the state’s charter, making it difficult–if not impossible–to change direction if the need arose. Now, the state of Georgia–which has a similar restriction–is demonstrating just how short-sighted and damaging it is to elect people who are more concerned with politics than good policy.

From Heather Cox Richardson’s daily “Letter,”(no link, but her URL is [email protected]) we learn about an investigation by George Chidi, a Georgia journalist and former staff writer for the Atlanta Journal-Constitution.

Chidi examined Georgia Governor Brian Kemp’s decision to reopen gyms, fitness centers, bowling alleys, tattoo parlors, barbers, nail salons, restaurants, theaters, and massage therapists, among other businesses, next week.

Kemp said the businesses would be required to screen workers for illness, increase sanitation rules, separate workspaces by at least six feet, telework where at all possible, and have staggered shifts. He also said that more restrictive local rules could not override his order.

Kemp told reporters that his concern was to protect small businesses, hurt by the economic shutdown, but Chidi had a different interpretation. “It’s about making sure people can’t file unemployment,” he wrote.

The state’s unemployment fund has about $2.6 billion. The shutdown has made claims skyrocket—Chidi says the fund will empty in about 28 weeks. There is no easy way to replenish the account because Georgia has recently set a limit on income taxes that cannot be overridden without a constitutional amendment. It cannot borrow enough to cover the fund either, because by law Georgia can’t borrow more than 5% of its previous year’s revenue in any year, and any borrowing must be repaid in full before the state can borrow any more.

By ending the business closures, Kemp guarantees that workers can no longer claim they are involuntarily unemployed, and so cannot claim unemployment benefits. Chidi notes that the order did not include banks, software firms, factories, or schools. It covered businesses usually staffed by poorer people that Kemp wants to keep off the unemployment rolls. (Emphasis supplied.)

We already knew that Kemp was despicable; a man for whom the word “ethics” is clearly meaningless–as Secretary of State, he refused to recuse himself and oversaw the Gubernatorial election in which he was a candidate. By throwing out some 50,000+ registrations from African-American voters, he narrowly deprived Stacy Abrams of a victory in that race.

This effort to deprive low-income workers in Georgia of the ability to claim unemployment is equally contemptible, but it is also equally attributable to the restrictive provisions in Georgia’s constitution.

Indiana’s constitution requires a balanced budget. That requirement need not be debilitating–if the state and its subdivisions can raise taxes to meet unanticipated challenges. Thanks to Mitch Daniels, his successors in the Governor’s office are unable to do that. Governor Holcomb thus far seems like a pretty solid guy–a throwback to the kind of Republicans I used to know–so I am hopeful he won’t emulate Georgia’s Kemp.

When rightwing Congress-critters bloviated about a Balanced Budget Amendment, cooler heads pointed to the perils and prevailed. When Republicans in the Indiana statehouse crowed about putting tax caps in the constitution to “protect” taxpayers, warnings by fiscal and tax policy experts were pooh-poohed.

Politics won, sane and informed policy lost.

Isn’t there a song called “Georgia on my mind”?

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Making Matters Worse….

If Trump and his sorry band of predators were simply inept–unable to govern (and certainly unable to govern in the public interest)–it would be bad enough, since  incompetence alone is causing hundreds–perhaps thousands– of unnecessary deaths.

But Trump can’t leave bad enough alone. As crowds of seriously stupid people protested “stay at home” orders in several states, he took to Twitter to encourage them–in language that has been interpreted as advocating “overthrowing” the (Democratic) governors of three of those states.

It’s never safe to attribute intent to Donald J. Trump, since most of his attempts at communication are incoherent. Nevertheless, it has been pointed out that encouraging the violent overthrow of the government may be a federal crime. (I’m sure Trump would reiterate his position that the President cannot be investigated for criminal behavior, let alone charged–a position he’s held only since becoming President. It certainly wasn’t his position when Obama–of whom he is clearly insanely jealous–was in office.)

However, as Heather Cox Richardson has written (link unavailable), there is more to it than Trump’s usual obliviousness.

Since the 1980s, the Republican Party has retained power by insisting that its leaders were defending America from dangerous “liberals,” who wanted to redistribute wealth from hardworking, religious, usually white, taxpayers, to “special interests.” In the years since President Ronald Reagan, there has been less and less nuance in that narrative and, by the time of President Barack Obama, no room to compromise. The division of the nation into “us” versus “them” has come to override any attempt at actual problem solving; Republican lawmakers simply address national problems with what their ideological narrative requires: cuts to taxes, regulation, and social welfare programs.

The coronavirus pandemic requires us to unite for our own safety, but members of the Republican Party can only see the world in partisan terms. Boston College political scientist David Hopkins notes that “The contemporary Republican Party has been built to wage ideological and partisan conflict more than to manage the government or solve specific social problems.” Republicans remain so consumed by their war on Democrats and liberals they cannot fathom working together to fight the pandemic.

Richardson sees Trump’s tweets in the context of that GOP narrative–and notes that it is a narrative constantly and wholeheartedly advanced by Fox News. As she points out, the relatively small protest against Governor Gretchen Whitmer in Michigan was not some eruption of grass-roots sentiment; it was organized by the Michigan Conservative Coalition and the DeVos family, and the reason anyone even heard about it was because right-wing media–especially Fox– hyped it.

FNC personality Jeanine Pirro said of the Michigan protesters: “God bless them, it’s going to happen all over the country.” FNC personality Laura Ingraham tweeted a video of it, saying: “Time to get your freedom back.” FNC personality Tucker Carlson interviewed a representative of the MCC on his show; the person got another interview on “Fox & Friends” the next day. Indeed, Trump’s “LIBERATE MINNESOTA!” tweet came just after a program on the Fox News Channel ran a story on protests at the Minnesota governor’s office by a group called “Liberate Minnesota.”

The goal of this enterprise is to keep Republicans in office in 2020. The latest filing for Senate Majority Leader Mitch McConnell’s (R-KY) leadership committee shows that four of the top five donors are executives for the Fox News Channel. Lachlan Murdoch, Rupert Murdoch, Viet Dinh, FNC’s Legal Adviser and Policy Director, and the president of 21st Century Fox all gave $20,600.

Richardson identifies Trump’s “central political problem” as his inability to work with Democrats to implement the measures needed in a time of crisis. I think she’s being kind. I think his “central problem” is a combination of mental illness, narcissism, abysmal ignorance and stupidity. (Ignorance and stupidity are not the same thing; ignorance is an absence of information and can be remedied–stupid can’t be fixed.)

Be that as it may, however, the “central political problem” America faces is an administration composed of people with whom our mentally-ill and entirely self-regarding President feels comfortable. Its an assemblage that is both thoroughly corrupt and totally unfamiliar with the proper purposes and operations of government–  and it’s supported by a base in thrall to a “state media” that puts Pravda to shame.

We know Trump and his administration are stealing us blind; what is worse, between their daily rollbacks of environmental protections and their monumental incompetence in crisis management, they are literally killing us.

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We Interrupt This Blog To Kvetch…

If you don’t know what “kvetch” means, google it.

I am about to complain about things my sons call–accurately–“first world problems.” First world problems, for those who may not have heard the phrase, are problems people would be grateful to have in other parts of the world–or for that matter, less fortunate precincts of the United States. I should be ashamed to complain about them while others are facing job losses, illness or death–and especially when people on the “front lines” are risking their health and possibly their lives stocking grocery shelves, delivering much-needed goods, and caring for the sick.

So please know that I am ashamed to kvetch. But I’m going to do it, and I’m pretty sure I’m not alone.

It isn’t just my hair, which has taken on a life of its own. (I’m considering cutting it myself; the only thing that keeps my hands from the scissors is picturing Haley–she who actually knows how to cut hair and who usually cuts mine every three weeks–looking horrified and disapproving when salons reopen.)

It isn’t just the fact that the skin on my hands is raw from constant washing.

It isn’t just that the only person other than my husband that I’ve actually talked to face-to-face was the plumber who came (in mask and gloves) to fix a VERY inconvenient and VERY expensive leak that caused part of the basement ceiling to collapse.

It isn’t just the jeans and old sweatshirts that I wear every single day. Actually, there’s something comforting about not wearing out my nicer clothes (or putting them on and noticing that they’ve become considerably tighter…).

It isn’t just that I can’t hug my grandchildren–but that is a really, really big part of it. Three of our four perfect grandchildren live close by; the two youngest (16 and 18) are only four blocks away and are used to coming over frequently–to raid the pantry, to play pool in Grandpa’s “man cave,” or to do homework away from annoying parents…Now, when the weather is nice, they may walk over (usually accompanied by those same annoying parents), but they stand ten or twelve yards away and wave…no hugs. No kisses.

Drives me nuts.

Before the order to stay in our homes, I’d given notice that I planned to retire. IU has something called “phased retirement,” and I planned–and still plan–to work half-time for the next two years, then say “sayonara.” I’d been regaling my husband with all the things I’d do then–clean all the closets, dust and rearrange all the books in the library, clean out all the kitchen cabinets…. I was going to have an immaculate home environment. When I retired.

I was also going to read for pleasure, not just to keep up academically .

Um…I’ve done all that during this enforced “staycation.” I’ve cleaned everything that doesn’t move. I’ve read at least ten forgettable books. I’ve even finished lingering research projects.

I don’t know what I’ll do when I retire…..

I miss human contact. I miss hugging my children and grandchildren. I miss meeting friends for brunch or drinks. I miss talking to my students face-to-face rather than online. I even miss grocery shopping.

Maybe I’m projecting, but I’ve noticed that the comments to my daily blogs are getting longer. I think you guys are bored too…..

I’ll quit kvetching about what I know is an important and necessary measure to flatten the curve and keep us safe–or at least safer. And I will count my “first world” blessings–a home in which to quarantine, a job that continues to pay me, a supportive spouse who ignores my hair-that-devoured-Cleveland and obediently tells me that, yes, that closet I just cleaned  looks great….and blog readers who (mostly) make me feel valued.

Tomorrow, I’ll stop kvetching and return this blog to its proper focus: America’s abysmal federal governance.

Sorry for the detour, but I feel better now……

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Trust Tells Us A Lot

As our social distancing drags on, researchers have been investigating the effects on social solidarity–how Americans view each other, and especially, any changes in the level of “social trust.” In this context, social trust is an indicator of what sociologists and political scientists call social capital.

The bad news is that, thanks to the ineptitude and constant and pathetically obvious lies from the Trump administration, trust in the federal government is very low. (Recent example: Israeli news reports revealed that U.S. Intelligence told Israel and NATO in November  about the threat posed by the coronavirus– contradicting Pentagon claims that no such report existed.)

The good news is that a couple of recent surveys have found improvement in the way Americans view each other. In that sense, it’s reminiscent of the change in attitudes triggered by the Great Depression. Suddenly, the very American (and arguably Calvinist) view that people are poor because they are morally defective–lazy or unmotivated–was replaced by recognition that poverty is largely a social phenomenon. (If there are no jobs, its harder to blame people for not having them.)

Social capital is the label we give to our memberships in social networks–the human relationships within which we are embedded. Trust is an important component of social capital–but so is reciprocity. Scholars define social capital as the institutionalized expectation that other people will reciprocate co-operative behaviors–the recognition that If we fail to work together when collective efforts are needed, we all become poorer.

There are two kinds of social capital: bonding and bridging. Bonding social capital is possible only with shared identity (however identity is defined). It’s at the heart of tribalism: “I belong to this group, and I look with suspicion/disdain at those who don’t.” Bridging social capital, which has been in short supply recently, links people across cleavages that typically divide us (race, class, or religion). Its associations create ‘bridges’ between communities.

The surveys that suggest a growth in “generalized social trust” are encouraging because they hold out the hope that America may be restoring some of its lost bridging social capital.

I was reminded of the importance of trust and bridging social capital when I was cleaning out cabinets in my home office. (I don’t know how other people cope, but stress tends to turn me into a maniacal cleaning machine.) I came across a reprint of “SPEA Insights” –a PR publication we used to put out, highlighting faculty research. This one was from July of 2010; titled “Trust Me, Said the Spider,” it was focused on the then-recent publication of my book Distrust, American Style.

In it, I pointed out that trust in social institutions–especially but not exclusively government–is absolutely essential to contemporary life.

Think about it. We deposit our paychecks and take for granted that the funds will be there when we need to draw them out; we pay the electric bill and expect the lights to turn on when we throw the switch; we order a gizmo from Amazon or other Internet merchant and are confident the gizmo will be delivered. We go to our local grocery and buy a chicken, confident that we won’t have to individually test it for e coli when we get home.

On and on….

And–as I argued in that paper– Americans rely on government to ensure that our water is drinkable, our air breathable, our aircraft flyable, and so much more.

I was particularly struck by my own words from 2010:

“And when we go through a period when government is inept or corrupt, that confidence is shaken–but our skepticism and distrust affect more than just the political system. Trust in government sets the tone for confidence in all social institutions….From time to time, America goes through periods where the failures of our civic and governing institutions are so manifest that awareness of them is simply inescapable. In the era of the Internet, the amount of information received by even the most “low information” voters has been enormously amplified. When I wrote Distrrust, the American public was positively marinating in news of corruption and incompetence.”

That was 2010. Ten years ago. I’d say we’re pretty thoroughly marinated now.

The last sentence of that essay is truer today than ever, in the wake of this pandemic: “our first order of business must be the restoration of transparency, accountability and trustworthiness of our government.”

No kidding.

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Then There’s Monsanto…..

It isn’t just the Trump administration that is thoroughly corrupt. In fact, it’s hard not to see Trump’s collection of mob wanna-be’s and hangers-on as representative of far too many American mega-corporations.

Take Monsanto. (As Henny Youngman might have said, please…)

A while back, the Guardian published an expose–one of many–that confirmed what farmers and rural folks have known for years, namely, that the company is rapacious, dishonest and immoral.

The US agriculture giant Monsanto and the German chemical giant BASF were aware for years that their plan to introduce a new agricultural seed and chemical system would probably lead to damage on many US farms, internal documents seen by the Guardian show.

Risks were downplayed even while they planned how to profit off farmers who would buy Monsanto’s new seeds just to avoid damage, according to documents unearthed during a recent successful $265m lawsuit brought against both firms by a Missouri farmer.

The documents, some of which date back more than a decade, also reveal how Monsanto opposed some third-party product testing in order to curtail the generation of data that might have worried regulators.

And in some of the internal emails, employees appear to joke about sharing “voodoo science” and hoping to stay “out of jail”.

Think about that last paragraph for a while.

The Guardian investigation focused on a product intended to replace Roundup–the company’s best-selling herbicide that has been connected to various cancers. Not that concern about user’s health entered into the equation. It seems that millions of acres of US farmland have become overrun with weeds that have become resistant to Roundup, the company’s name for glyphosate.

Farmers using Roundup would spray it on crops that Monsanto had genetically engineered to survive being sprayed with glyphosate. That was popular with farmers everywhere, not just in the U.S.,  but it led to the emergence of weeds that were also resistant to Roundup. The new system promoted by Monsanto and BASF uses a herbicide called dicamba; it “similarly provides farmers with genetically engineered dicamba-tolerant soybeans and cotton that can be sprayed directly with dicamba.” The weeds sprayed with the new product die–at least, so far– but the crops don’t.

There is, it appears, a down-side to the new product (other than the consequences of such herbicide use generally).

Dicamba has been in use since the 1960s but traditionally was used sparingly, and not on growing crops, because it has a track record of volatilizing – moving far from where it is sprayed – particularly in warm growing months. As it moves it can damage or kill the plants it drifts across.

The companies said they would make new dicamba formulations that would stay where they were sprayed and would not volatilize as older versions of dicamba were believed to do. With good training, special nozzles, buffer zones and other “stewardship” practices, the companies assured regulators and farmers that the new system would bring “really good farmer-friendly formulations to the marketplace”.

You can guess the rest. Only farmers buying Monsanto’s own dicamba-tolerant cotton and soybean seeds would be protected from drift damage. And they knew it. According to a report prepared for Monsanto in 2009, such “off-target movement” was expected, along with “crop loss”, “lawsuits” and “negative press around pesticides.” Monsanto’s own projections estimated that damage claims from farmers would total more than 10,000 cases. Evidently, those anticipated lawsuits were just a cost of doing business–business that generated enough profit to make even significant losses quite manageable.

And of course, one way Monsanto generated profit and business was through the drift–which encouraged the “drifted on” farmers to buy Monsanto’s resistant seeds.

It’s Roundup all over again.

Three juries so far have found that Roundup is carcinogenic and that Monsanto hid the risks. And just as Monsanto has done in the Roundup cases, it has tried to keep most of the discovery from the dicamba litigation designated confidential. According to the Guardian, some 180 of those documents have been unsealed.

“The documents are the worst that I’ve ever seen for any case that I’ve worked on,” said lawyer Angie Splittgerber, a former tobacco industry defense attorney who works with Randles in the firm Randles & Splittgerber. “So many of them put things in writing that were just horrifying.”

The linked article has facts and figures and is worth reading in its entirety–not just because Monsanto’s behavior has been utterly despicable for many years, but because lax government oversight has allowed a number of companies to behave with similar impunity. Too many of America’s “movers and shakers” consider this kind of behavior “doing business.”

Capitalism requires effective regulation in order to work properly. This is what happens when the regulated capture and control the regulators.

This is the cesspool from which Trump and his enablers emerged. This is their “normal.”

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