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Will MI Democrats Champion Women’s Rights as Santorum Surges through Our State?

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I noted the other day how tired I am of MI’s Democrats asking women to ignore the anti-choice stance of so many of our Democrats, a stance which led to MI Democrat Bart Stupak dictating what kind of medical insurance women across the country can get.

Well, in the next 2 weeks, the party will have the opportunity to take the same stand the President just took and the same stand former Governor Jennifer Granholm, herself a Catholic, has taken, solidly in favor of health equality for women.

Over the next two weeks, of course, Rick Santorum will be wandering around our state,  trying to score a decisive victory against Mitt Romney by preaching that women should not be encouraged to work outside the home, that women should not serve in combat for fear it would distract their male counterparts from doing their jobs, that women who are raped should “make the best” of it by carrying their rapist’s child, and, yes, that health insurance should not cover contraception. In short, Santorum will be calling for downright regressive treatment of women as a way to beat Mitt in his home state.

Not even Republican women support these extreme stances.

All that might not matter for Democrats–we might have the luxury of sitting back and laughing at their contest–except for one thing. Rick Santorum will also, as he has been doing, distinguish himself from Mitt Romney by championing manufacturing. Our issue. Manufacturing.

And while his policies wouldn’t actually help manufacturing as much as, say, cracking down on China’s cheating would, he will nevertheless be speaking to the plight of those working in manufacturing, even while preaching against the autonomy and equality of women.

If Santorum wins–as he is poised to do–this year’s electoral match-up may actually get decided here in MI. This year’s electoral match-up may get defined, at least locally, in the next two weeks. And that means it’s time to lay out what Democrats–what all people who believe women should not be second class citizens–stand for.

While Santorum wanders around our state we absolutely have to remind voters that the new manufacturing jobs were brought by Granholm’s outreach and Obama’s energy investments. We absolutely have to remind Michiganders that Santorum also opposed the auto bailout.

But I hope we’re also making that case that whereas Santorum believes in the dignity of just half the electorate, there is a party that champions–or damn well better champion–the dignity of all the electorate.

Santorum to “Plant His Flag” in Michigan

 

I think there are two reasons that Rick Santorum is enjoying another surge in the GOP Primary Reality Show, having won all three caucus states last night, two in a blow-out.

First and foremost, Santorum is the only one of the GOP candidates to be able to somewhat credibly claim to be what Nixon (as best described by Rick Perlstein) an Orthogonian–the outsider who resents the arrogance of the elite.

Nixon’s insights into the possibilities of harnessing voter resentment, Perlstein maintains, derived from his own; indeed, he was a “serial collector of resentments.” As a student at Whittier College, a young Nixon addressed his own painful exclusion from the school’s social elites, the Franklins, by forming his own club of outsiders, the Orthogonians, open to “the strivers, those not to the manner born.” For Perlstein, the Franklin-Orthogonian divide captures perfectly a split between social and economic elites and everyone else (at least among whites) that Nixon manipulated to his advantage.

His signal achievement was in successfully casting his Democratic opponents as Franklins and enlisting many non-elites into the Orthogonian ranks. He thus seeded the ground for the culture wars that sprouted during the 1960s and persisted, in varying forms, ever since. For the white suburban middle class, admiring Nixon involved “seeing through the pretensions of the cosmopolitan liberals who claimed to know so much better than you . . . what was best for your country.” As a presidential candidate in 1968, he gave them a name: “the ‘silent center,’ ” those ” ‘millions . . . who do not demonstrate, who do not picket or protest loudly’ ” and who “lived virtuously.” Within a few years, he fastened on the term that would endure: the Silent Majority.

In last night’s victory speech Santorum took on Obama, repeating over and over that Obama thinks he “knows better” than Santorum’s supporters. He said Obama doesn’t listen. And while that’s not much different from the nastiness and victimization that Newt performed to win the South Carolina primary, coming from a “grandiose” college professor it just sounds off. And Mitt and his Cayman Island tax shelters?

If you ignore Santorum’s self-dealing on PACs and his stint as a lobbyist, you can almost believe that Santorum has faced the same challenges as many Americans.

This year’s Republican voters–the relatively few who are turning out to vote–hate the knowing technocracy Obama is giving them, and Santorum can play on their resentment of that in a way Mitt and Newt can’t.

But Santorum’s wins have, also, been focused (with the exception of Colorado) on Midwestern states. One reason for that, I believe, is his explicit call for manufacturing, pushing to eliminate taxes on manufacturing in this country. Whether or not you believe he would do that, he speaks to the many benefits of manufacturing in a way that resonates in the Midwest. (Nate Silver predicted Santorum’s strength in the Midwest last week.)

And so Rick Santorum has–predictably, in my opinion–announced he plans to focus on MI rather than AZ for the next GOP primary day, February 28 (suck it, bmaz!).

But with the next major contests for the GOP nomination in Arizon and Michigan on Feb. 28, Santorum said on msnbc’s “Morning Joe” Wednesday morning that, “We think Michigan’s a great place for us to plant our flag.”

Read more

Michael Hayden’s Risky and Edgy Schadenfreude

I’ve long suspected the reason Republicans have pursued Fast and Furious so relentlessly–and more importantly, have tried to implicate Eric Holder in it personally–is to exact revenge on the Attorney General because he deigned to investigate torture.

This disgusting bit of dick-wagging from Michael Hayden only reinforces that suspicion.

Schadenfreude — joy at the misfortune of others — is a bad thing.

So I’ve been trying to resist temptation these past months as I watch Attorney General Eric Holder deal with public and congressional reaction to the “Fast and Furious” scheme, the failed attempt by the Bureau of Alcohol, Tobacco, Firearms and Explosives to seed and then track U.S. firearms to Mexican drug cartels.

[snip]

But any personal instinct toward some common “executive branch” empathy for Holder is muted not only by the dubious character of Fast and Furious, but by some of the attorney general’s other actions, as well. While out of office, for example, he famously called for a “reckoning” for CIA officers and other officials who authorized and conducted operations that were edgy and risky and intended to deal with difficult circumstances.

Once in office, he launched a “reckoning” of CIA renditions, detentions and interrogations of terrorists by directing the Justice Department to reopen investigations closed years before by career prosecutors. This decision was opposed by then-CIA Director Leon Panetta and seven of his predecessors, and Holder reportedly made the decision without reading detailed memos prepared by those career prosecutors declining to pursue further proceedings.

[snip]

As I said, schadenfreude is a bad thing. But it is sometimes hard to avoid, especially when life seems to come full circle.

Attorney General Eric Holder has made it clear that he thinks he has been subjected to a heavily politicized process over Fast and Furious.

If he has — and that’s still an if — I suspect that some folks at CIA know exactly how he feels.

Hayden ought to be grateful that DOJ has helped cover up the Bush Administration’s illegal wiretap program, not to mention their unsuccessful efforts to prosecute Thomas Drake for exposing that when implementing that program, Hayden deliberately chose more expensive plans that offered less privacy.

But instead he seems to be suggesting that it would be right to retaliate politically against the Attorney General for doing his job–prosecuting crime.

Ah well, in his spiteful glee, Hayden finally admits that the torture program was unsuccessful.

After the congressional elections of 2006, the CIA was forced to defend edgy (often controversial and sometimes unsuccessful) actions in a tough political environment.

But I guess we citizens have to put up with such unsuccessful and illegal programs otherwise, or risk political retribution?

Newest Leaked NATO Report Aimed at Preventing Afghanistan Withdrawal?

Fresh on the heels of the “leak” to the New York Times two weeks ago of an already public report on Afghan troops killing US troops, another NATO report casting a bad light on the current war effort in Afghanistan has been leaked. This time the report was made available to the British press, with BBC and the Times of London (behind a paywall and therefore not getting a link) being shown copies of the report. Interestingly, most news stories on the leaked report concentrate on the report’s claim that Pakistan, and especially Pakistan’s ISI, is helping the Taliban in Afghanistan, a fact which is already known and which was dismissed by Pakistan’s Foreign Minister Hina Khar as “old wine in an even older bottle.”  Reuters hits on another, likely more important aspect of the report, however, even including it as their headline: “Taliban ‘poised to retake Afghanistan’ after NATO pullout“.

The information contained in this new leak gives further support for my thinking on the reasoning behind the information fed to the New York Times for their January 20 article, when I said “The story appears to me to be presented from the angle of military higher-ups who don’t want to withdraw from Afghanistan and point to the failed training of Afghan forces to support their argument that we must stay there.” In much the same way, this report, which points out that the Taliban will retake Afghanistan shortly after we leave, supports the conclusion that we must stay there to “win” what President Obama has called our “war of necessity“.

For a President who has put so much effort into punishing those who leak sensitive information (well, at least whistleblowers who leak), Obama now appears to me to be faced with a military that is engaged in the selective release of information that is designed to make it impossible for him to continue his plan to withdraw troops from Afghanistan by the end of 2014. Will there be any punishment for these two recent leaks, or are they some “multidimensional chess” setting the stage for Obama to throw up his hands and declare that we can’t leave after all?

As for the meat of the leaked report, BBC has posted selected excerpts. This excerpt, for example, is along the lines of most press reports: Read more

Mitt’s Welfare-Driven Vulture Capitalism

When I hosted Steve Rattner at FDL Book Salon, I noted how blind he was to problems of other private equity firms–in the context of the auto bailout, Cerberus. So I was interested in Rattner’s attempt to defend Mitt’s tenure at Bain.

Bain Capital is not now, nor has it ever been, some kind of Gordon Gekko-like, fire-breathing corporate raider that slashed and burned companies, immolating jobs wherever they appear in its path.

[snip]

Instead, with modest exceptions (keep reading to learn more about these), Bain Capital was a thoroughly respectable — nay, eminent — investment manager that successfully discharged its responsibility of earning high returns for its investors by deploying capital in companies privately rather than by buying shares in the public market. (Hence the name, private equity.)

The point Rattner of course doesn’t delve into is this one: how taxpayers effectively subsidize this process because of tax law.

So what are the question marks (promised above) around the story of Romney and Bain Capital? First, it’s fair game to question the amounts of debt that are sometimes used in leveraged buyouts. While higher debt usually means higher returns — because debt is cheaper than equity, thanks in part to its tax deductibility — it also means higher risk of bankruptcy.

The problem, as private equity guy and public monies-scamming Steve Rattner sees it, is all this debt leads to more bankruptcies.

But what does it mean that all this debt incurs tax advantages?

Thankfully, Rortybomb posted this interview with Josh Kosman, who wrote a book on the topic, to explain it.

Your research has found that, far from being natural, private equity exists largely due to issues with the tax code. Can you explain?

The whole industry started in the mid-to-late 1970s. The original leveraged buyout firms saw that there were no laws against companies taking out loans to finance their own sales, like a mortgage. So when a private equity firms buys a company and puts 20 percent down, and the company puts down 80 percent, the company is responsible for repaying that.

Now the tax angle is that the company can take the interest it pays on its loans off of taxes. That reduces the tax rate of companies after they are acquired in LBOs by about half. Banks, also realizing this tax effect, were willing to finance these deals. At the time, you could also depreciate the assets of the company you were buying — that’s not true today.

They saw that you could buy a company through a leveraged buyout and radically reduce its tax rate. The company then could use those savings to pay off the increase in its debt loads. For every dollar that the company paid off in debt, your equity value rises by that same dollar, as long as the value of the company remains the same.

So the business model is based on a capital structure and tax arbitrage?

Yes. It’s a transfer of wealth as well. It’s taking the wealth of the company and transferring it to the private equity firm, as long as it can pay down its debt.

[snip]

A recent paper from the University of Chicago looking at private equity found that “a reasonable estimate of the value of lower taxes due to increased leverage for the 1980s might be 10 to 20 percent of firm value,” which is value that comes from taxpayers to private equity as a result of the tax code. Can you talk more about this?

That sounds about right. If you took away this deduction, you’d still have takeovers, but you’d have a lot less leverage and the buyer would be forced to really improve the company in order to make profits. I think that would be a great thing.

The whole interview very accessibly lays out precisely what I was trying to get at the other day: there are aspects of private equity that have bad consequences baked in. And they’re all baked in, in part, precisely because taxpayers are subsidizing the takeovers in the form of tax benefits.

Or welfare, as the creative destructionists ought to call it.

Update: Per prostratedragon, see this Dean Baker diary putting some numbers to this rich person welfare.

Torturing the Truth Vigilantes

“WHAT ELSE ARE WE ON THIS EARTH TO DO???,” Dan Froomkin tweeted as he contemplated the NYT’s Public Editor, Arthur Brisbane, asking for reader input on whether or not its reporters should correct false statements made by those they report on.

I’m looking for reader input on whether and when New York Times news reporters should challenge “facts” that are asserted by newsmakers they write about.

[snip]

[Including a paragraph correcting false claims] is what one reader was getting at in a recent message to the public editor. He wrote:

“My question is what role the paper’s hard-news coverage should play with regard to false statements – by candidates or by others. In general, the Times sets its documentation of falsehoods in articles apart from its primary coverage. If the newspaper’s overarching goal is truth, oughtn’t the truth be embedded in its principal stories? In other words, if a candidate repeatedly utters an outright falsehood (I leave aside ambiguous implications), shouldn’t the Times’s coverage nail it right at the point where the article quotes it?”

This message was typical of mail from some readers who, fed up with the distortions and evasions that are common in public life, look to The Times to set the record straight. They worry less about reporters imposing their judgment on what is false and what is true.

Is that the prevailing view? And if so, how can The Times do this in a way that is objective and fair? Is it possible to be objective and fair when the reporter is choosing to correct one fact over another? Are there other problems that The Times would face that I haven’t mentioned here?

I responded to Froomkin, “I believe ‘Gin up wars for the Administration’ is high on NYT’s list of ‘what else they are on this earth to do.'”

Now, I’m just as interested in how Brisbane framed this. The whole article was titled, “Should The Times Be a Truth Vigilante?” Admittedly, it’s possible Brisbane didn’t come up with the headline. Nevertheless, the choice of the word “vigilante” suggests violent, mob action. This, from the foremost member in this country of what used to be known as “The Fourth Estate,” professionals who, by virtue of their training, are believed not to operate with the same blindness of a mob. The headline could have asked, “Should NYT’s journalists act like journalists?” but that would normalize the apparently radical idea of fact-checking. Instead, Brisbane (or the NYT’s headline writer) treated the simple act of telling the truth as something only the rabble might do.

Just as troubling, still, are the examples Brisbane cites. Read more

“Creative Destruction” as Catchall

Matt Yglesias has responded to my post on the destruction wrought by some capitalism with a fairly narrow complaint about my sarcastic comment about what I still maintain his original post entailed: an apology for the kind of destruction that Bain Capital engages in because (he argued) all successful capitalism creates such destruction.

I don’t really want to get into the weeds of things with Marcy Wheeler on private equity, so let me just say that this view she sarcastically attributes to me is the reverse of the view I hold:

Capitalism is all about creative destruction, you see, so we must celebrate that creative destruction.

What I think is that in a market economy creative destruction happens, and that has terrible consequences for the lives of people who are adversely effected by circumstances beyond their control.

[snip]

The message of creative destruction, when you understand it, is that the idea that “a rising tide lifts all boats” is a cruel lie. Growth is broadly beneficial over the long-term but individual human beings live out their lives on finite time scales and many individual people suffer from even generally positive economic trends.

He goes on to describe several things as creative destruction:

  • The rise of desktop publishing software and the damage it does to established graphic artists*
  • The hypothetical legalization of gambling in CA and the damage it would do to Las Vegas’ casino industry
  • The decline of Kodak (which in his earlier post he attributed to the rise of digital cameras) and the decline it brought to Rochester, NY, generally

I won’t get too deep in this, but I think it useful to, first of all, point out that these are not all like things. Indeed, the legalization of gambling is only partly about market forces at all, it’s about legislative forces (and usually, in this day and age, is brought about by the purchasing of influence, precisely the opposite of real capitalism), and it often doesn’t lead to real growth at all. And both desktop publishing and digital cameras combine two things: the introduction of new technologies and their successful marketing. The example of Kodak also involves globalization. All of which are distinct from the financialization of capitalism represented by Bain, which is where this all started.

I’d like to suggest that we do ourselves a big disservice by lumping them all in together under the term “creative destruction.” The very term is one rolled out to excuse the ravages of capitalism. And used as Yglesias does, it doesn’t make fairly clear distinctions we can make between different practices of capitalism or even forces–like technology–that interact powerfully with capitalism but are distinct from it. Nor does it permit analysis of whether any useful “creation” is going on at all. That is, the term closes off precisely the kind of discussion we ought to be having–and Mitt’s Bain critics were engaging in, before Yglesias accused them of simplifying the issue–about the choices we make in our society and economy.

Yglesias and I absolutely agree we need to help those who suffer as a result of change brought about by capitalism, technology or (in the case of casinos) money-driven policy decisions. But there is, at the same time, plenty of space for distinguishing between capitalist practices that are considered noble or useful, and those which should be treated with shame and moral outrage, if not regulatory prohibition.

And I believe that those practices that serve no useful purpose for the society as a whole, like Bain’s vulture capitalism, falls into the latter category.


* In the interest of full disclosure, I should note that my father was one of those people at the intersection of technology and career success. As such, he had a significant hand in changes–particularly the roll out of the PC–that brought about the introduction of software that changed the value attributed to skills of graphic designers and secretaries. Which of course means all the advantages I’ve had in my life derive in part from the pain that computers have caused people. Not that it changes that fact, but I will say that many of my adolescent drag-down fights with my father consisted of me calling him a stupid asshole for rolling out technology before society was ready and the software was appropriate.

The Greatness of America: “Ashes of Doomed Factories, Pink-Slipped Workers, and Towns Laid to Waste”

I’m utterly delighted with this paragraph:

But as is so often the case, the reality is more complicated. Almost every successful business career is built on the ashes of doomed factories, pink-slipped workers, and towns laid to waste.

Not because it’s true–it’s not! But because I’m so amused that someone (in this case, Matt Yglesias, presumably drawing on his long career as a business tycoon) claiming to complicate a purportedly simplified issue–whether Mitt Romney and other corporate raiders are the same as “the good kind of businessman, the one who launches and grows firms, creating new products and jobs and opportunities”–would make such a claim.

“Almost every successful business career.” Wow. Almost every one, huh? That’s a lot of towns laid to waste. I wonder … is this a one-to-one relationship? One successful business career for every town laid to waste? Does each “successful business career” entail doomed factories, pink-slipped workers, and towns laid to waste–all three–as the “and” logically suggests? Or is, um, “the reality … more complicated”?

And what counts as a “successful business career,” according to Yglesias, anyway? Just those titan-driven technology companies and industries he invokes–Apple, Google, broadcast, cable, Internet–or also the local business owner who succeeds at business by providing goods her customers want with excellent service? It seems laying to waste entire towns implies a scale that doesn’t include many–perhaps most–successful business careers.

Even more telling, though, is the causality. Read more

“Crackpots don’t make good messengers”

For the record, I have no intention of voting for Ron Paul in the General election (though depending on how the GOP primary rolls out, I might consider crossing over to vote for Paul in the MI primary, for similar reasons as I voted for John McCain in the 2000 primary: because I knew my vote wouldn’t matter in the Democratic primary and I hoped a McCain win might slow down George Bush’s momentum and focus some attention on campaign finance reform, McCain’s signature issue at the time).

I don’t want Ron Paul to be President and, for all my complaints with Obama, he is a less bad presidential candidate than Paul.

But that’s an entirely different question then the one Kevin Drum purports to address with this post:

Should we lefties be happy he’s in the presidential race, giving non-interventionism a voice, even if he has other beliefs we find less agreeable? Should we be happy that his non-mainstream positions are finally getting a public hearing?

Drum doesn’t actually assess the value of having a non-interventionist in the race, or even having a civil libertarian in the race (which he largely dodges by treating it as opposition to the drug war rather than opposition to unchecked executive power), or having a Fed opponent in the race.

Instead, he spends his post talking about what a “crackpot” Paul is, noting (among other things), that Paul thinks climate change is a hoax, thinks the UN wants to confiscate our guns, and is a racist.

Views, mind you, that Paul shares in significant part with at least some of the other crackpots running for the GOP nomination.

Of course, Paul does have views that none of the other Republicans allowed in Presidential debates share. And that’s what Drum would need to assess if he were genuinely trying to answer his own question: given a field of crackpots, several of whom are explicit racists, several of whom make claims about cherished government programs being unconstitutional, most of whom claim to believe climate change doesn’t exist, is it useful that one of the candidates departs from the otherwise universal support for expanded capitulation to banks, authoritarianism, and imperialism? Read more

The Gray Lady Calls the GOP Candidates Gray

The NYT had a hysterical editorial calling out the GOP candidates for claiming that waterboarding is not torture.

As hard as it is to believe, the Republican candidates for president seem to have learned very little from the moral calamities of the administration of George W. Bush. Three of the contenders for the party’s nomination have now come out in favor of the torture known as waterboarding. Only two have said it is illegal, and the rest don’t seem to have the backbone to even voice an opinion on the subject.

At Saturday night’s debate in South Carolina, Herman Cain and Michele Bachmann said they would approve waterboarding of prisoners to extract information. They denied, of course, that waterboarding is torture, even though it’s been classified as such since the Spanish Inquisition. “Very disappointed by statements at S.C. GOP debate supporting waterboarding,” Senator John McCain, the 2008 Republican presidential nominee, wrote on Twitter. “Waterboarding is torture.”

[snip]

As empty as Mr. Romney’s remarks were about Iran, his refusal to renounce waterboarding is disturbing. There are few issues that more clearly define a candidate’s national security policy in the 21st century than a position on torture. A few candidates will fight terrorism using the rule of law, honoring the nation’s moral standards to encourage other countries to do the same. Others will defend the United States by promising to extract information from captives using pain and simulating death, degrading the nation’s reputation. That group now includes Mr. Cain, Mrs. Bachmann and Mr. Romney.  [my emphasis]

Oh, I agree with the sentiment. On this issue (aside from Jon Huntsman and Ron Paul) the GOPers are a bunch of immoral thugs.

But I’m rather amused that the editorial page of the NYT–the NYT!!!–is attacking others for refusing to call waterboarding torture.

As Glenn Greenwald noted, here’s what two of the then-editors have had to say about whether waterboarding is torture or not.

New York Times Executive Editor Bill Keller explaining why his newspaper won’t describe Bush interrogation techniques as “torture”:

[D]efenders of the practice of water-boarding, including senior officials of the Bush administration, insisted that it did not constitute torture.

New York Times Washington Bureau Editor Douglas Jehl on why his paper refuses to describe Bush’s waterboarding program as “torture”:

I have resisted using torture without qualification or to describe all the techniques. Exactly what constitutes torture continues to be a matter of debate and hasn’t been resolved by a court. This president and this attorney general say waterboarding is torture, but the previous president and attorney general said it is not. On what basis should a newspaper render its own verdict, short of charges being filed or a legal judgment rendered?

And here’s what the NYT’s spokesperson said in response to a study showing that they had changed their language on waterboarding once the US embraced using it.

“As the debate over interrogation of terror suspects grew post-9/11, defenders of the practice (including senior officials of the Bush administration) insisted that it did not constitute torture,” a Times spokesman said in a statement. Read more