This Billionaire Governor Taxed the Rich and Raised the Minimum Wage. Now, His State’s Economy Is One of the Best in the Country

By Carl Gibson, Reader Supported News

Mark_Dayton_MinnesotaThe next time your right-wing family member or former high school classmate posts a status update or tweet about how taxing the rich or increasing workers’ wages kills jobs and makes businesses leave the state, I want you to send them this article.

When he took office in January of 2011, Minnesota governor Mark Dayton inherited a $6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota’s first true fiscally-conservative governor in modern history. Pawlenty prided himself on never raising state taxes – the most he ever did to generate new revenue was increase the tax on cigarettes by 75 cents a pack. Between 2003 and late 2010, when Pawlenty was at the head of Minnesota’s state government, he managed to add only 6,200 more jobs.

During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly – a tax increase of $2.1 billion. He’s also agreed to raise Minnesota’s minimum wage to $9.50 an hour by 2018, and passed a state law guaranteeing equal pay for women. Republicans like state representative Mark Uglem warned against Gov. Dayton’s tax increases, saying, “The job creators, the big corporations, the small corporations, they will leave. It’s all dollars and sense to them.” The conservative friend or family member you shared this article with would probably say the same if their governor tried something like this. But like Uglem, they would be proven wrong.

Between 2011 and 2015, Gov. Dayton added 172,000 new jobs to Minnesota’s economy – that’s 165,800 more jobs in Dayton’s first term than Pawlenty added in both of his terms combined. Even though Minnesota’s top income tax rate is the 4th-highest in the country, it has the 5th-lowest unemployment rate in the country at 3.6 percent. According to 2012-2013 U.S. census figures, Minnesotans had a median income that was $10,000 larger than the U.S. average, and their median income is still $8,000 more than the U.S. average today.

By late 2013, Minnesota’s private sector job growth exceeded pre-recession levels, and the state’s economy was the 5th fastest-growing in the United States. Forbes even ranked Minnesota the9th-best state for business (Scott Walker’s “Open For Business” Wisconsin came in at a distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton’s tax cuts, 6,230 more Minnesotans filed in the top income tax bracket in 2013, just one year after Dayton’s tax increases went through. As of January 2015, Minnesota has a $1 billion budget surplus, and Gov. Dayton has pledged to reinvest more than one third of that money into public schools. And according to Gallup, Minnesota’s economic confidence is higher than any other state

Gov. Dayton didn’t accomplish all of these reforms by shrewdly manipulating people – this article describes Dayton’s astonishing lack of charisma and articulateness. He isn’t a class warrior driven by a desire to get back at the 1 percent – Dayton is a billionaire heir to the Target fortune. It wasn’t just a majority in the legislature that forced him to do it – Dayton had to work with a Republican-controlled legislature for his first two years in office. And unlike his Republican neighbor to the east, Gov. Dayton didn’t assert his will over an unwilling populace by creating obstacles between the people and the vote – Dayton actually created an online voter registration system, making it easier than ever for people to register to vote.

The reason Gov. Dayton was able to radically transform Minnesota’s economy into one of the best in the nation is simple arithmetic. Raising taxes on those who can afford to pay more will turn a deficit into a surplus. Raising the minimum wage will increase the median income. And in a state where education is a budget priority and economic growth is one of the highest in the nation, it only makes sense that more businesses would stay.

It’s official – trickle-down economics is bullshit. Minnesota has proven it once and for all. If you believe otherwise, you are wrong.


Carl Gibson, 27, is co-founder of US Uncut, a nonviolent grassroots movement that mobilized thousands to protest corporate tax dodging and budget cuts in the months leading up to Occupy Wall Street. Carl and other US Uncut activists are featured in the documentary We’re Not Broke, which premiered at the 2012 Sundance Film Festival. Carl is also the author of How to Oust a Congressman, an instructional manual on getting rid of corrupt members of Congress and state legislatures based on his experience in the 2012 elections in New Hampshire. He lives in Sacramento, California.


West Coast Port Slowdown Impacts Nevada County Businesses

west_coast_port_slowdownBy Don Pelton

When we arranged with the local tree experts and altogether good people at Trees Unlimited to fell about a half dozen large ponderosas on our property and have them trucked to a mill, we scheduled the work to be done on Friday the 13th, disregarding all the silly supersitions about that date.

It turned out to be an unlucky date for us, though.

They had to cancel the job due to a work slowdown at the container ports on the West Coast. The mills can’t ship any more lumber to these ports (for the Chinese market, among others), because of a labor-management dispute between the International Longshoremen’s Association and the ports’ management (the Pacific Maritime Association).

And we can’t have the trees just felled and remain on the ground until the dispute is resolved. That could be weeks, or even months. By that time, the trees would no longer be marketable.

The work slowdown affects many more industries besides our local tree people.

It’d be interesting to know the full impact of the slowdown on Nevada County’s economy. We know that it’s affecting a lot of tree work here in addition to our own.

In the meantime, there’s no doubt that the slowdown is affecting businesses in neighboring California counties:

World Ag Expo impacted by West Coast port slowdown”

On Friday, the California Assembly Republican Caucus issued a press release begging the union and the port management to quickly resolve their dispute, calling attention to the harm already being done to California’s agricultural economy:

“The ongoing West Coast port labor dispute is having a devastating impact on our economy. Farmers and ranchers in particular are having a tough time shipping perishable food to customers worldwide. It is unacceptable that California’s economy is essentially being held hostage to a labor dispute,” said Assembly Republican Leader Kristin Olsen, of Modesto. “I am calling for action from President Obama and the federal government to intervene and secure a resolution so we can get our ports fully operating again.”

“Farmers, small business owners, retailers, truckers, consumers and nearly every Californian are being impacted by this ongoing dispute that has brought our ports to a virtual standstill,” said Assemblyman James Gallagher (R-Nicolaus). “I call upon both sides to come together to resolve this dispute without delay. President Obama and the federal government must also use every power at their discretion to bring the parties together to reach a settlement.”

“As we speak, precious fruits and vegetables are rotting in shipping containers that are bottlenecked at our West Coast ports,” said Assemblyman Devon Mathis (R-Porterville). “Our Central Valley has already been hit hard by the ongoing drought. The agricultural products our communities managed to produce despite the lack of water have been thrown to the wayside due to this disruptive labor dispute. We cannot allow these exports to sit for one day longer.”

The labor dispute at the West Coast ports has waged on for nine months. On Wednesday, it was announced that port operations will be suspended for four days as a result of the current labor dispute. According to one estimate, it could cost the country $2.1 billion per day if the ports shut down entirely for 10 days. Worse, congestion at West Coast ports could cost retailers as much as $7 billion this year alone.

According to the following business report, the President could force a cooling-off period under Taft-Hartley if the slowdown were to become a full-fledged strike or a complete lockout. In the meantime, the daily dollar cost of the slowdown is probably in the billions nationwide.

2/12/15 – Why the West Coast port slowdowns are cracks in the foundation of the U.S. economy

2/10/15 – West coast port dispute slows movement of bales 

2/9/15 – Port of Oakland updates operating status, waterfront labor talk

2/9/15 – West Coast port closure could cost $2.1 billion per day

2/9/15 – ILWU locked out on West Coast for 2 days

2/7/15 – Bitter shipping battle continues at Oakland port

2/6/15 – House Majority Leader Kevin McCarthy wants federal mediation of port dispute

2/6/15 – Port trucking companies take stand against rising fees

2/4/15 – PMA President James C. McKenna issues a statement regarding the state of contract negotiations

2/3/15 – CRRC letter to Governor Brown requesting suspension of regulatory penalties

1/30/15 – Letter from members of Congress to the ILWU and PMA urging resolution

1/30/15 – WCRRC letter to regulatory agencies requesting suspension of penalties

 


Another Economic Crash is Coming

Economist Ross Ashcroft (in this 4-minute video) correctly points out that the most important warning sign of an impending crash is the level of private (household and business) debt as a percentage of GDP. In this view, he is in complete accord with Professor Steve Keen, one of the few economists to correctly predict the last big meltdown.

 

 

 

 

 


Internet’s Impact on Print Media Only Part of the Story

Playwright Alena Smith, describing the faded fortunes of American playwrights, notices that the impact of the Internet extends far beyond the print media:

This is what happens to “old media,” after all — new media rise up and displace them. We are clearly in the midst of such a conflict right now, as the internet has seized control of the global cultural economy, upending established industries and eroding formerly paramount institutions from book publishers to the music industry to print newspapers and magazines to now, finally, even the mighty television networks. Rough times lie ahead for the television industry, and these challenges will inevitably impact its writers.;

Side note: We’ve joined this revolution by dropping our cable service several years ago (saving ourselves over $100/mo). Now we do all of our “television” viewing online, Internet only.

Smith continues:

As internet pioneer turned techo-skeptic Jaron Lanier starkly puts it in his 2010 screed You Are Not a Gadget, “Once file sharing shrinks Hollywood as it is now shrinking the music companies, the option of selling a script for enough money to make a living will be gone.” Lanier’s warning may seem hyperbolic, but unrestricted file sharing is surely what undermined the music industry, and it’s what’s hurting the world of journalism, too. In a sense, the internet caused the unbundling of both the music album and the print newspaper — and in doing so, severely damaged both industries. The trouble comes down to simple economics of supply and demand in the digital age. When infinite copies of a work of art can be made and distributed globally in an instant, supply is limitless, and the value of an individual copy gets pushed down to zero. But of course, the original cost of creating a work of art in the first place, for the creator, does not change a bit. Writers still need to eat, pay rent, and feed their families. They just can’t necessarily rely on profits from their actual work to compensate them for that endeavor. This is how a profession gets demonetized. This is how a job — a living — gets reduced to a hobby.

Notice too Smith’s perspective on net neutrality:

The platform where nearly all of culture now takes place is, in fact, owned and controlled by a handful of incredibly powerful, borderline-monopolistic corporations. And these are the companies, like Amazon, now getting into “the scripted game.” We’ve already seen the types of problems that can arise under this new arrangement — for example, in the recent conflict between Amazon and the publishing company Hachette. In an era where Amazon is responsible for 65 percent of all online book sales, and 41 percent of book sales, period, their thuggish negotiation tactics can be potentially calamitous for a publishing company, and devastating for individual writers. If this is how Amazon treats the writers of books, how well can we expect them, as producers or distributors, to treat the writers of TV shows? Similar questions can be asked about any of the powerful new platform owners — in particular, the telecom companies that actually control the physical cables and routers through which all our media now travels. The fight for net neutrality is the fight to stop the internet from becoming a place where giant telecom companies are able to dictate terms to every creator who wishes to distribute content through their pipes. And screenwriters’ livelihoods depend on it.

Read the full article here: “You Can’t Make a Living: Digital Media, the End of TV’s Golden Age, and the Death Scene of the American Playwright


Eric Holder: The Reason Robert Rubin Isn’t Behind Bars

Reprinted from The Center for Economic and Policy Research under a Creative Commons License

By Dean Baker

The big news item in Washington last week was Attorney General Eric Holder decision to resign. Undoubtedly there are positives to Holder’s tenure as attorney general, but one really big minus is his decision not to prosecute any of the Wall Street crew whose actions helped to prop up the housing bubble. As a result of this failure, the main culprits walked away incredibly wealthy even as most of the country has yet to recover from the damage they caused.

Just to be clear, it is not against the law to be foolish and undoubtedly many of the Wall Streeters were foolish. They likely believed that house prices would just keep rising forever. But the fact that they were foolish doesn’t mean that they didn’t also break the law. It’s likely that most of the Enron felons believed in Enron’s business model. After all, they held millions of dollars of Enron stock. But they still did break the law to make the company appear profitable when it wasn’t.

In the case of the banks, there are specific actions that were committed that violated the law. Mortgage issuers like Countrywide and Ameriquest knowingly issued mortgages based on false information. They then sold these mortgages to investment banks like Citigroup and Goldman Sachs who packaged them into mortgage backed securities. These banks knew that many of the mortgages being put into the pools for these securities did not meet their standards, but passed them along anyhow. And, the bond-rating agencies rated these securities as investment grade, giving many the highest possible ratings, even though they knew their quality did not warrant such ratings.

All three of these actions – knowingly issuing mortgages based on false information, deliberately packaging fraudulent mortgages into mortgage backed securities, and deliberately inflating the ratings for mortgage backed securities – are serious crimes that potentially involve lengthy prison sentences. Holder opted not to pursue criminal cases against the individuals involved.

In the last couple of years Holder did bring civil cases against these banks that led to multibillion settlements. These settlements won big headlines that gave the appearance of being tough on the banks.

If we look at the issue more closely the rationale for these settlements gets pretty shaky. When Bank of America or J.P. Morgan has to pay out several billion dollars in penalties in 2013 or 2014, the people being hit most immediately are current shareholders and to a lesser extent top management. Since stock turns over frequently, the overlap between the group of people who hold these banks’ stock today and the people who benefited from the profits racked up in the bubble years will be limited. This means for the most part the fines are hitting people who did not profit from the wrong doing.

The same story holds for the top executives. Insofar as these are different people from those in charge in the bubble years (this is mostly the case), they can rightly tell their boards that they should not be held responsible for the wrongdoing of their predecessors. As a result, boards are likely to compensate top management if they fail to hit bonus targets due to the fines. This just means more of a hit to current shareholders. So the people who profited from criminal acts get to keep their money, while Holder can boast about nailing people who had nothing to do with the crime.

Had Holder treated this as a normal criminal matter he would have looked to build cases from the bottom up. This means finding specific examples of mortgage agents issuing obviously fraudulent mortgages, cases where these mortgages got bundled into securities at investment banks, and then marked as investment grade by the rating agencies.

The people involved would then be pressed to say whether they are either buffoons or crooks. Most probably would not pass as the former. The next question is why they decided to break the law. When you get people to admit that they were acting on instructions from their bosses, you then ask the bosses whether they want to spend many years in jail or would prefer to explain why they thought it was a good idea to commit fraud. (This is the pattern the Justice Department is pursuing in going after illegal campaign contributions to Washington Mayor Vincent Gray.)

We can never know this pattern of prosecution would have nailed big fish like Goldman’s Lloyd Blankfein or Citigroup’s Robert Rubin. We do know that Holder never even tried. As a result the Wall Streeters who profited most from illegal acts in the bubble years got to keep their haul. This is the message that bankers will take away going forward. This virtually guarantees ongoing corruption in finance.


AUTHOR_Dean_BakerDean Baker is the author of The End of Loser Liberalism: Making Markets Progressive, Taking Economics Seriously, False Profits: Recovering from the Bubble Economy, Plunder and Blunder: The Rise and Fall of the Bubble Economy, The United States Since 1980, The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer, Social Security: The Phony Crisis (with Mark Weisbrot), and The Benefits of Full Employment (with Jared Bernstein). He was the editor of Getting Prices Right: The Debate Over the Consumer Price Index, which was a winner of a Choice Book Award as one of the outstanding academic books of the year. He appears frequently on TV and radio programs, including CNN, CBS News, PBS NewsHour, and National Public Radio. His blog, Beat the Press, features commentary on economic reporting. He received his B.A. from Swarthmore College and his Ph.D. in economics from the University of Michigan.


How the New York Times Enables Economic Illiteracy (Austerity)

Reprinted from the New Economic Perspectives blog at the University of Missouri-Kansas City

Editor’s Note: William K. Black, author of “The Best Way to Rob a Bank is to Own One,” is Associate Professor of Law and Economics at the University of Missouri-Kansas City, where — according to James Galbraith — “the best economics is now being done.”

By William K. Black

In the latest example of the New York Times’ reporters’ inability to read Paul Krugman, we have an article claiming that the “Growing Imbalance Between Germany and France Strains Their Relationship.”  The article begins with Merkel’s major myth accepted as if it were unquestionable reality.

“It was a clear illustration of the dysfunction of the French-German partnership, the axis that for decades kept Europe on a united and dynamic track.

In Berlin this month, Chancellor Angela Merkel, riding high after nine years in power, delivered a strident defense in Parliament of austerity, which she has been pushing on Europe ever since a debt crisis broke out in 2009.”

No, not true on multiple grounds.  First, the so-called “debt crisis” was a symptom rather than a cause.  The reader will note that the year 2008, when the Great Recession became terrifying, has somehow been removed from the narrative because it would expose the misapprehension in Merkel’s myth.  Prior to 2008, only Greece had debt levels given its abandonment of a sovereign currency that posed a material risk.  The EU nations had unusually low budgetary deficits leading into the Great Recession.  Indeed, that along with the extremely low budgetary deficits of the Clinton administration (the budget went into surplus near the end of his term) is likely one of the triggers for the Great Recession.

The Great Recession caused sharp increases in deficits – as we have long known will happen as part of the “automatic stabilizers.”  This is normal and speeds recovery.  The eurozone and the U.S. began to come out of the Great Recession in 2009.  The U.S. recovery accelerated with the addition of stimulus.  In the eurozone, however, the abandonment of sovereign currencies and adoption of the euro exposed the periphery to recurrent attacks by the “bond vigilantes.”  The ECB could have stopped these attacks at any time, but it was very late intervening – largely because of German resistance.  Instead, Merkel used the leverage provided by the bond vigilantes and the refusal of the ECB to act to end their attacks to force increasing austerity upon the eurozone and demands for severe cuts in workers’ wages in the periphery.

Merkel’s actions in forcing austerity and efforts to force sharp drops in workers’ wages in the periphery were not required to stop any “debt crisis.”  The ECB had the ability to end the bond vigilantes’ attacks and reestablish the ability of the periphery to borrow at low cost, as it demonstrated.  Merkel’s austerity demands and demands that (largely) left governments in the periphery slash workers’ wages promptly threw the entire Eurozone back into a second Great Recession – and much of the periphery into a Second Great Depression.  It had the desired purpose of discrediting the governing parties of the left, particularly in Spain, Portugal, and Greece; that gave in to Merkel’s mandates that they adopt masochistic macroeconomic policies.

It is also false that Merkel began demanding that eurozone inflict austerity only in 2009.  Merkel wanted to inflict austerity and her war on the workers and the parties they primarily supported long before 2009.  What changed in 2009 was that the ECB, the Great Recession, and the bond vigilantes gave her the leverage to successfully extort the members of the eurozone who opposed austerity and her war on workers and the parties of the left.

But it is what is left out of the quoted passage above that is most amazing.  The fact that Merkel’s orders that the eurozone leaders bleed their economies through austerity and the war on workers’ wages led to a gratuitous Second Great Recession in the eurozone – and Great Depression levels of unemployment in much of the periphery disappears.  The fact that inflicting austerity and wage cuts in response to a Great Recession is economically illiterate and cruel disappears.  The fact that the overall eurozone – six years after the financial crisis of 2008 and eight years after the financial bubbles popped in 2006 – has stagnated and caused tens of trillions of dollars in lost GDP and well over 10 million lost jobs is treated by the NYT article as if it were unrelated to Merkel’s infliction of austerity.

“But the French economy has grown stagnant, with unemployment stubbornly stuck near 11 percent and an unpopular government pledging to cut tens of billions in taxes on business, which many French fear will unravel their prized welfare state.”

No, the eurozone economy “has grown stagnant” and produced a Second Great Depression in much of the periphery.  If France had a sovereign currency or if the EU were to make the euro and into a true sovereign currency France could simultaneously “cut tens of billions in taxes on business” while preserving the social safety net and speeding the recovery.  The same is true of the rest of the eurozone – including Germany where Merkel’s policies have made the wealthy far wealthier and deepened the economic crisis in other eurozone nations by cutting German worker’s wages.  The NYT article is disingenuous about both aspects of the German economy, noting only that “the German economy has shown signs of slowing down.”  German growth was actually negative in the last quarter and the treatment of its workers weakens the German and overall eurozone recovery.

It continues to be obvious that it is a condition of employment for NYT reporters covering the eurozone’s economic policies that they never read Paul Krugman (or most any other American economist).  Consider this claim in the article:

“[Prime Minister Manuel Valls] and Mr. Hollande have alienated many members of the Socialist Party by taking a more centrist approach to economic policy, stoking suspicions that the government is favoring business at the expense of the welfare state.”

I will take this part very slow.  By my count Krugman has written at least six columns in the NYT explaining that there actually is a powerful consensus among economists.  The “centrist approach” is that austerity in response to a Great Recession is self-destructive.  We have known this for at least 75 years.  Modern Republicans, when they hold the presidency, always respond to a recession with a stimulus package.  Valls and Hollande are moving away from a “centrist approach to economic policy.”  They are doing so despite observing first-hand the self-destructive nature of austerity (and proclaiming that it is self-destructive).  They do so despite the demonstrated success of stimulus in responding to the financial crisis.  They do so despite the fact that the results of the faux left parties adopting these economically illiterate neo-liberal economic policies is the destruction of the parties that betray their principles and the workers.  Valls and Hollande are spectacularly unpopular in France because of these betrayals.  It is clear why Valls and Hollande wish to avoid reading Krugman’s critique of their betrayals, but theNYT reporters have no excuse.

The reporters do not simply ignore the insanity of austerity and the plight of the eurozone’s workers – they assert that it is obvious that Merkel is correct and that the French reluctance to slash workers’ wages is obviously economically illiterate.

“Just over a decade ago, as Ms. Merkel is fond of noting, Germany was Europe’s sick economy. It recovered partly because of changes to labor laws and social welfare. Mr. Hollande now faces a similar task in an era of low or no growth.”

No.  These two sentences propound multiple Merkel myths and assume (1) that France’s (and the rest of the eurozone’s) problems are the same as Germany’s issues “just over a decade ago,” (2) that Germany “recovered” due to slashing workers’ wages and social programs, and (3) that the German “solutions” would work for the eurozone as a whole.

Germany’s “reforms,” which included increasing financial deregulation, have proven disastrous.  German banks finished third in the regulatory “race to the bottom” (“behind” Wall Street and the worst of the worst – the City of London).  The officers that controlled Deutsche Bank and various state-owned German banks were among the leading causes of the financial crisis.  German workers had lost ground even before the financial crisis and have lost even more ground since the crisis began.  Inequality has also become increasingly more extreme in Germany.

The current problem in the eurozone is a critical shortage of demand exacerbated by the insanity of austerity and Merkel’s war on workers’ wages.  The word “demand” and the concept, the centerpiece of the macroeconomics of recession, never appear in the article.  An individual nation in which the wealthy have the political power to lower workers’ wages can increase its exports and employ more of its citizens.  This obviously does not prove that the workers were overpaid.  Merkel and the NYT ignore the “fallacy of composition,” which is particularly embarrassing because they are neo-mercantilists pushing the universal goal of being a net exporter.  As Adam Smith emphasized, we can’t all be net exporters.  A strategy that can work (for the elites) of one nation cannot logically be assumed to work for large numbers of nations.

The last thing a society should want in a recession is rapidly falling wages and prices that can create deflation (another word expunged from the NYT article because it would refute their ode to Merkel, austerity, and her war on the worker).  If France were to slash workers’ wages to try to take exports from Ireland while Ireland slashed workers’ wages to try to take exports from Spain, which did the same to take exports from Italy the result would be deflation, a massive increase in inequality, the political destruction of any (allegedly) progressive political party that joined in the war on the worker, and a “race to Bangladesh” dynamic.

Germany’s “success” in being a very large net exporter makes it far more difficult – not easier – for any other eurozone nation to copy its export strategy successfully.  As a group, the strategy cannot work for the eurozone.  The strategy has, of course, not simply “not succeeded.”  It has failed catastrophically.  Merkel’s eurozone policies have caused trillions of dollars in extra losses in productivity, the gratuitous loss of over 10 million jobs, increased inequality, and the loss through emigration of many of the best educated young citizens of the periphery.

Hollande does not face “a similar task” to Merkel.  He faces different problems and Merkel’s “solutions” are the chief causes of France’s economic stagnation rather than the answers to France’s problems.

I repeat my twin suggestions to the NYT reporters that cover the eurozone’s economy.  The paper’s management should host a seminar in which Krugman educates his colleagues.  Alternatively, come to UMKC and we’ll provide that seminar without charge.  None of us can afford the cost of the reporters’ continuing willful ignorance of economics and their indifference to the victims of austerity and Merkel’s war on workers.

 


“A Great Leader Doesn’t Just Occupy The Middle Ground”

Here are some tough words about the Obama presidency from Cornell West, who argues persuasively that the fetish for the middle ground in politics often makes for poor leadership.

In the interview Thomas Frank asks West, “What on earth ails the man? Why can’t he fight the Republicans? Why does he need to seek a grand bargain?”

West replies:

“I think Obama, his modus operandi going all the way back to when he was head of the [Harvard] Law Review, first editor of the Law Review and didn’t have a piece in the Law Review. He was chosen because he always occupied the middle ground. He doesn’t realize that a great leader, a statesperson, doesn’t just occupy middle ground. They occupy higher ground or the moral ground or even sometimes the holy ground. But the middle ground is not the place to go if you’re going to show courage and vision. And I think that’s his modus operandi. He always moves to the middle ground. It turned out that historically, this was not a moment for a middle-ground politician. We needed a high-ground statesperson and it’s clear now he’s not the one.”

West also says:

“He posed as a progressive and turned out to be counterfeit. We ended up with a Wall Street presidency, a drone presidency, a national security presidency. The torturers go free. The Wall Street executives go free. The war crimes in the Middle East, especially now in Gaza, the war criminals go free. And yet, you know, he acted as if he was both a progressive and as if he was concerned about the issues of serious injustice and inequality and it turned out that he’s just another neoliberal centrist with a smile and with a nice rhetorical flair. And that’s a very sad moment in the history of the nation because we are—we’re an empire in decline. Our culture is in increasing decay. Our school systems are in deep trouble. Our political system is dysfunctional. Our leaders are more and more bought off with legalized bribery and normalized corruption in Congress and too much of our civil life. You would think that we needed somebody—a Lincoln-like figure who could revive some democratic spirit and democratic possibility.”

Read the full interview here:

Cornel West: “He posed as a progressive and turned out to be counterfeit. We ended up with a Wall Street presidency, a drone presidency”


Fringe Climate Skeptics Wield Undue Influence on Rural Public Policy

By Steve Frisch

I have been thinking a lot about our regional climate change skeptics in the Sierra Nevada and their impact on public policy. Occasionally I do my share of getting into debates and doing a little warming myself though I know it simply empowers their position at times.

I do however have a couple of observations about how they make their case and the consequences.

Rarely do they get into the actual scientifically peer reviewed papers and make their case based on the efficacy of the science itself.

The case I hear is that any science wholly or even partially funded by the government or private foundations done by agencies, academic institutions, professional groups, or individual scientists is inherently flawed due to their source of funding. Then I hear that any science using past data funded by any of these groups is inherently flawed due to confirmation bias. Next I hear that the peer review process itself is inherently flawed due to dependence on government funding. Then I hear that when the aggregate data and multiple proof points indicate a significant change occurring we should be giving more weight to the outlier data proving the opposite, as though the very small percentage of those valid peer reviewed reports should be given some weight that contrary data is not due. Finally I hear that if there is some evidence that anthropogenic climate change is occurring the cost of doing something about it is prohibitive.

It is as though climate skeptics do not wish to even understand or acknowledge the peer review process and the critical role it plays in vetting data and its analysis.

I guess this would not be an issue if the consequences of being wrong were not so high.

The impact of a changing climate on California’s water supply alone is measured in the tens of billions of dollars in economic impact annually. Worse, because we live in a state where the vast majority of people do believe climate change is a real threat, and our state has adopted policies to adapt to and mitigate the impacts of climate change through laws like AB 32 and SB 375, the low carbon fuels standard and the renewable portfolio standard, much of our state is rushing ahead with adaptation and mitigation strategies, strategies funded through a combination of our state general fund budget, surcharges on electricity, and revenue derived from the Cap and Trade program. Those revenues are being used to adapt our infrastructure, like water delivery systems, roads, bridges transportation networks, and wastewater treatment. Those revenues can also be directed at solving the seemingly insurmountable problem in the Sierra Nevada of long-term forest management and wildfire management, establishing a link between forests, mountains, watershed management, and water supply that is the number one commodity export of the Sierra Nevada and the source of much of our states wealth.

The problem we face is that distribution of revenue is controlled by a political process; our state budget voted on by legislators annually. In a political process funds don’t get distributed to regions and legislative districts where the elected representatives don’t acknowledge a problem is occurring and actively obstruct solving the problem in other areas of the state. Consequently the Sierra Nevada and its climate related issues do not receive their fair share of state funding which is being paid for by all of the taxpayer of the state, even us rural residents.

The stakes are very high indeed; by 2020 more than $5 billion per year will be distributed to adapt to climate change in California. Where will that money go? Who will benefit from the public works, construction, community improvement and middle class jobs related to implementation?

We are allowing the voice of a small minority of climate skeptics and their ability to influence our local politics by being the ‘loudest voice in the room’ to deny our region the funding we deserve, relegating our local communities and economies to a permanent backwater and underprivileged status.

The Onion may be parodying this phenomenon, but our communities are living it, we are watching as billions of dollars a year are collected from our residents and going to urban districts where the populous is more amenable to climate adaption and mitigation strategies. If I were a rural legislator I might listen to the skeptics, but I would not deny my regions the fruits of their taxes, surcharges and fees.

At some point pragmatism has to take over.

I only wish I knew where that point was so I could push to reach it.


Steve_FrischSteve Frisch is President of the Sierra Business Council and one of its founding members. He is a dedicated project manager with over 20 years experience managing people in a highly competitive environment. Steve manages SBC’s program staff and programmatic development. He also manages sustainable business and building projects to encourage the adoption of socially responsible business and development practices.

Prior to joining the Sierra Business Council, Steve owned and operated a small business in Truckee, California and was president of the Truckee Downtown Merchants Association. Steve has served on the Nevada County Welfare Reform Commission, the Town of Truckee redevelopment agency formation committee and as an advisor to the California Resources Agency’s California Legacy Project.


The Worst of Nevada County in National News, Again

Why is that only the worst of Nevada County — in this case another right-wing gun nut — makes the national news?

Esteemed journalist and historian Rick Perlstein, writing in Salon, found occasion to notice this Nevada County event (while gently chiding the New York Times for failing to cover it):

Here is a truth so fundamental that it should be self-evident: When legitimately constituted state authority stands down in the face of armed threats, the very foundation of the republic is in danger. And yet that is exactly what happened at Cliven Bundy’s Nevada ranch this spring: An alleged criminal defeated the cops, because the forces of lawlessness came at them with guns — then Bureau of Land Management officials further surrendered by removing the government markings from their vehicles to prevent violence against them.

What should be judged a watershed in American history instead became a story about one man’s racist rants. Even as two more Nevada lunatics, inspired by their stint at Cliven Bundy’s ranch, allegedly ambushed and mowed down two police officers and killed a bystander after crying, “This is the start of a revolution.” And now, an antigovernment conspiracy theorist named Douglas Cole recently shot at two police officers in Nevada County, California (though you may not have heard about that, because the New York Times hasn’t found the news yet fit to print).

From “Gun Nuts Are Terrorizing America: The Watershed Moment Everyone Missed

Ah, but here’s some Nevada County news that the New York Times did find “fit to print.” But wait, it’s also bad news!

Nevada County

Nevada County ranks 58th of 58 in diversity in California.

Students, in 2006 15,446
White 13,496 87%
Black 142 1%
Hispanic 1,336 9%
Asian 240 2%
Native American 232 2%

Some might consider Nevada County’s connection to the founding of the Tea Party Patriots good news. But there’s hardly a consensus about that.

I look  forward to the day when we get into the national news for integrating our local economic and environmental interests, for our understanding of the economic importance of restoring local watersheds, for our leadership in bridging the urban/rural divide. and for our creative reconciliation of liberal and conservative values.

The fact that this all sounds very idealistic and touchy-feely is an indication of how far we have to go in making it a reality.

But why else should we be here, if not to work for that?


“The Time for the Wolf Creek Parkway is NOW”

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