Puget Sound Liberals Weekly Newsletter #168

Enhancing Freedom, Opportunity and Cooperation in Puget Sound and Beyond

Through informing and networking Liberals and Liberal Organizations.

 

Our vision is hundreds of thousands of well-informed Puget Sound Liberals working together.

 

       3000 members                                 April 3, 2009                     formerly Lake Hills Liberals                

 

 

 

 

                                                     

Our Website                                   Our  Editor                  To Unsubscribe

 

              Table of Contents   * Featured Articles

 

About Puget Sound Liberals

Calendars of Events

Communication With Our Members

Opportunities

Petitions

 

Commentaries from Our Members

Ray McBain Recommends Government Action Article

Rich Austin on Anti-Health Reform Dialogue

 

Liberals and Democrats Links to the Beef

Obama Watch - Week 10

Major Political Battles to Come*

Liberals and Progressives

 

State and Local Links to the Beef

Toward Tax Reform*

A Vision for Washington State Democrats

Featured Advocacy Group*

 

Nation and World Links to the Beef

Federal Budgeting for Dummies*

Robert Kuttner: Policies to Reform Our Economy*

Japan Offers a Model for Financial Equality*

Building Our New Economy*

Providing Adequate Pensions*

 

Our Liberal Spirit

Thinking and Talking*

 

Recommended Books

 

 

Our Political Values

 

Our Political Priorities

 

·       Fair Clean Elections and Open Government

·       Fair Taxes and Competent Spending

·       Investment for Productivity

·       Quality Health, Education, Jobs, Income

·       Environmental Protection and Energy Independence

·       Security and Equal Rights

·       Justice and Peace Everywhere

·       International Cooperation and Leadership

 

Conservatives oppose all of these

 

     Let’s End Our National Nightmare

 

         Let’s Restore Our American Dream

 

More on Conservative opposition to our American Dream

 

Washington State’s 5 Major Needs

·       Federal Funding for Health and Education

·       Stop Corporate Abuse

·       Public Campaign Financing

·       Substitute a Progressive Income Tax

·       Replacing Conservative Legislators

 

Quote of the Week

It took us a couple of days because I like to know what I'm talking about before I speak.  Barack Obama on March 24, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Calendar of Events

Friday, April 3 at 7 PM at Kane Hall, Room 120 (University of Washington, Seattle) –  4th Annual Physicians for a National Health Program – Western Washington Public Meeting, including addresses by Oliver Fein, Representative Jim McDermott and Robby Stern.

Tuesday, April 7 at 7 PM at Newport Way Library (14250 SE Newport Way, Bellevue) – Sierra Club “Beyond Coal” informational night.  RSVP.

Friday, April 24 (3-9 PM); Saturday, April 25 (9 AM-6 PM); and Sunday, April 26 (9 AM – 3:30 PM) at Seattle – Camp Wellstone training for citizen activists, campaign workers and candidates.  $50 - $200.  To register.

Friday, April 24 to Sunday, April 26 at the Grand Illusion Cinema (1403 NE 50th Street, Seattle) – first annual Prisoner Education Network’s Social Justice Film Festival.

 

 

Calendars of Events                             

 

King County Democrats - LD Meetings            Some 2008 Legislature Lobby Days

Thurston County Progressive Net                  Western Washington Fellowship of Reconciliation

Alliance for Democracy                                Democratic Underground.Com                          

Sierra Club Cascade Chapter Calendar           Cool State Washington

Washington Public Campaigns Calendar          Town Hall Seattle Calendar

Washington State Labor Council                    Whatcom County Peace and Justice Calendar 

Conversation Cafe      Drinking Liberally          Seattle NOW          

Wallingford Neighbors for Peace and Justice – Friday Night Movies      Liberal films on PBS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Communication with Our Members

 

Help Your Liberal Friends

This newsletter is free, costing me only $200 each year for maintaining our website.  However, you can help recruit new members.  Just forward the notice you receive to Liberals you know that would benefit and suggest that they join by emailing me their name and community where they live.  Or just send me their name, email address and community. 

 

Having more members creates a bit more work for me.  But it helps more Liberals to be better informed and more effective in realizing our priorities.  A Liberal is a terrible thing to waste.

 

Opportunities and Petitions

Useful Websites: contacts, maps, community organizing tools, and more.

Access to jillions of political cartoons.

Download Sightline Institute’s climate policy primer ‘Cap and Trade 101’.  About Sightline.

Obtain Progressive States Networks resources for improving many state government services.

Create your own petition.

 

Petitions

Sign petition supporting President Obama’s Afghanistan policy.

Sign petition that public health insurance must at least be an option to private health insurance.

Tell your congress members to support President Obama’s 2010 budget.

Tell your congress members to support regulation of all financial companies, funds and products.

Tell Governor Gregoire and legislators to fully fund Basic Health Plan and GAU.

Tell Governor Gregoire to allow voters to vote on increasing taxes to help balance budget.

Tell all congress members to include a public insurance plan alternative to private insurance plans.

Tell your senators to not reduce President Obama’s proposed international affairs budget

Tell Senator Arlen Specter to support the Workers Free Choice Act.

Tell Attorney General Eric Holder to appoint a special prosecutor to investigate American torture.

 

Commentaries From Our Members

 

Ray McBain Recommends Commentary about Government Actions

 

I trust Obama to try to do the right thing.  I do not trust the people he has picked re. financial woes.

Read this to gain some understanding of what's going on in government.  Ray McBain

 

Rich Austin: Health Care Dialogue Results in Anti-Health Reform Agenda

 

This report, Health Reform Dialogue, contains a few modest but obvious recommendations that any reasonable reform effort must include. Much more important is that the primary theme of this report, as exemplified by the sampling of recommendations listed above, is that we should continue with the status quo, dumping more of our dollars into our dysfunctional, wasteful, inefficient, fragmented system of financing health care.  So why should we pay any attention at all to this worthless contribution to the national dialogue on health care reform? It is because it exposes the blatant lie that we are close to agreeing on reform that would bring affordable, high quality care to all residents of the United States.

 

This highly touted, closed door process has been taking place over the past half year. Theoretically all important stakeholders were included (except patients). They agreed that we have finally come to the time that reform is an absolute imperative. Through intensive negotiations behind closed doors in a (symbolically) smoke-filled room, they finally agreed... that smoking is bad for your health (and a couple of other points of less significance).  There is absolutely no mention of a single payer national health program or Medicare for All. That option was discarded before anyone walked into the room.

 

The compromise position to which the progressives had agreed would be to offer a public, Medicare-like insurance program to compete in the market of private plans. "Health Reform Dialogue" remains silent on such an option.  In a decision to exclude the progressive community from playing any serious role in reform, moderates are now proposing a government-sponsored, managed care PPO program, insulted by a double firewall from the government, so that it must compete on a "fair playing field" with the private plans. "Health Reform Dialogue" even remains silent on the possibility of offering a government PPO that would be required to include the same perverse policies that are inherent features of the private health plan models.

 

Look again at the organizations that signed on to this report. Two organizations that participated in the process are conspicuously absent: American Federation of State, County and Municipal Employees (AFSCME) and the Service Employees International Union (SEIU). At the end of this process, they refused to sign on to a document that would have even less impact than a no smoking pledge.  Look again at the list and decide which organizations actually controlled the process. Yes, those are the same organizations that have an ownership position in the Congress of the United States.

 

Unless Americans are ready to march on Washington, both literally and figuratively, the reform process is dead. Yes, dead!  Rich Austin

 

Liberals and Democrats

 

Obama Watch – Week 10

Also go to Whitehouse.gov.

 

President Obama’s Organizational Discipline

Our present administration is more disciplined than any previous administration.  White House officials meet weekly to decide their agenda for coming weeks.  A limited number of important meetings are held and they are disciplined.  President Obama reserves time for thinking and mingling.  The results are both effective and efficient.  Especially compared with recent administrations. 

President Obama has perfected the art of obtaining information from other people, while standing firm to his own beliefs.

Read about Obama’s marketing strategy.

Obama’s boldness with cautions is confusing both his critics and supporters.

 

If our economy doesn’t quickly begin to recover, opponents of our economic stimulus-investment package will say it isn’t working and should be repealed.  If our economy does quickly begin to recover, opponents will say our package isn’t needed and should be repealed.

 

President Obama: Here, There, Everywhere

On Wednesday, President Obama appeared at a Wednesday evening fundraiser. 

On Thursday, he held a virtual town meeting. 

On Friday, he met with executives of large banks.  For more. 

On Saturday, his weekly address extolled volunteerism.  For more.

 

Since President Obama became president, his campaign for public support continues.

President Obama’s diversified media strategy is maintaining his popularity 

When people are picking at President Obama from all directions, can he be wrong?

March 31 NY congressional race is a referendum on President Obama’s economic policies

 

2010 Budget

President Obama’s 2010 budget is being approved by congress.  For more.  2010 budget appropriation bills may need with only 50 votes to pass senate.  The biggest threat to passing Obama’s proposals is unruly Democratic congress members.  For more.  For more.

 

Dave Broder fails to realize that debt will be larger in the long run without short term debt increases. 

 

Republican budget outline reduces taxes for rich, increases taxes for the rest of us.  For more.  Democratic ad lampoons Republicans so-called budget (video).  By contrast, James Galbraith calls for an economic revitalization program similar to wartime mobilization.

 

Legislation

Congress passed and President Obama signed a Wilderness Protection bill which adds more than 2 million acres to U.S. wilderness.  The legislation includes important protections for 350,000 acres of land along 86 new Wild and Scenic Rivers.  The Omnibus Public Land Management Act of 2009, co-written by Sen. Dianne Feinstein and Sen. Barbara Boxer, is the largest wilderness preservation bill since President Clinton signed the Desert Protection Act in 1994.  For more.

 

The Serve America bill has been passed by both houses of congress.  It awaits President Obama’s signature when he returns from Europe.  For more.

 

Binding mercury emissions control treaty results from Obama administration efforts.

 

Policy

Tim Geithner and Ben Bernanke propose comprehensive regulation of financial companies.

 

President Obama is forcing General Motors to become much smaller if it is to survive.  Chrysler is again becoming part of a foreign company.  For more. 

 

Our Transportation Dept. announced tougher mileage standards, the first in 25 years.  Government may provide cash to those who trade in clunkers for more fuel efficient new cars.

 

On March 27, Obama announced an Afghanistan/Pakistan strategy to prevent either from being a safe haven for Al Qaeda, including military, diplomatic and development aid components.  For more.  For more.  Is Obama overestimating the danger that Afghanistan or Pakistan will provide a safe refuge for Al Qaeda?

 

President Obama plans a late April Climate Summit with representatives of 16 major countries.

 

European Trip

Since Barack Obama was inaugurated on Tuesday, January 20th, I have been counting weeks as running from Tuesday through the next Tuesday.  So we will report the Obama’s European trip next week (week 11).  Here is his itinerary:

Tuesday: Travels to Britain.

Thursday: Attends G-20 economic summit in London.

Friday: Goes to NATO summit in Strasbourg, France.

Saturday: Travels to Prague, Czech Republic.

April 5: Travels to Ankara, Turkey.

April 6: Visits Istanbul, Turkey.

April 7: Returns to Washington.

 

Here are preliminary commentaries: one.  Two.  Three.  Four.  In spite of America’s tarnished economic reputation, President Obama needs to get countries to cooperate to revive economy.  G-10 nations are likely to target tax havens.  Can Obama persuade European nations to fund more staff for the International Monetary Fund to assist poorer nations to cope with economic collapse?

 

President Obama gave Queen Elizabeth an iPod.  More appropriately, he might have given her two former colonies.  Perhaps Georgia and South Carolina.

 

Major Political Battles to Come

 

Strong lobbies will resist health care reform, cap and trade climate emissions control, military spending reductions, and measures which promote unionization.  Our Obama administration has so far delayed or indicated compromise on these various issues.  Unless these hard fought issues are resolved to produce necessary reforms, our deficits may be much greater and corporations will continue to create for financial inequality.

 

Health Care

While there is widespread agreement that health reform is needed now, there is disagreement about various aspects.  Particularly whether public health insurance should at least be an option to private health insurance.  This and other issues are being negotiated now by White House and Congressional participants.

 

In any event, we will learn that a system which includes private health insurance will be unaffordable, even if other problems of access and complexity can be solved.  For more.  For more.  Any money saved will come later, so how to pay for health reform? 

 

Cap and Trade

Coal interests strongly oppose Cap and Trade legislation which will reduce the use of coal.  They and their Republican supporters argue that, like a tax increase, it will increase costs for consumers.  But the money obtained can be given back to consumers, who will benefit in the longer run from cheaper alternative energies, less pollution and less global warming.  House Democratic leaders have introduced a plan.  For more.  For more.

 

Reduce Military Spending 

Our Obama administration’s budget proposal includes a 4% increase in military expenditures.   Cutting these expenditures is necessary to obtain money for domestic infrastructure and safety net programs.  Just as important, a large military with many hundreds of foreign bases, tempts us to an imperial foreign policy, including military action and the alienation of other countries and their peoples.

 

Promoting Unionization

Businesses are strenuously opposing legislation and other measures to make unionization easier.

Unions insist that they have sufficient congressional support.  But so far the Obama administration and congress have delayed action.

 

Key to resolving these issues are the Obama administration’s policies and the votes of our often inconsistently Liberal Democratic Congress Members.  Our readers should respond to our petitions to tell our congress members to strongly support these reforms.

 

Liberals and Progressives

 

I find John Podesta’s attempts to differentiate Liberals and Progressives unconvincing.  I believe that Liberals agree with all the principles and strategies that he suggests are unique to Progressives.  And vice versa.  But I have come to believe that there is value in having people who identify with either label.  It provides a healthy competition between their various adherents.  It also makes it more difficult for the Conservative remnant to focus their attacks.  For more.

 

Let me also put here: “the only people listening to Rush Limbaugh are elderly, balding men who weahttp://thehill.com/leading-the-news/dems-split-over-best-way-to-push-health-agenda-2009-03-26.htmlr dentures and have erectile dysfunction, prostate issues and heat rash.”  For more.  See the comments.

Here’s the Beef

Fair Elections Now Act introduced in congress to provide public campaign financing.

Various legislation to protect people from corporate exploitation should be passed.

President Obama’s budget eliminates bank participation in providing student loans.

Senate rejects amendment which would have funded anti-choice pregnancy centers.

Neo-Conservatives are still proposing that the U.S. extend our empire.

More Republican congress members will be vulnerable in 2010.

When Conservatives flee a Socialist America, where will they go?

 

State and Local

 

Toward Tax Reform

 

In Washington, high income people make out like bandits.  They pay for the labor, supplies and capital which enable their income.  They don’t pay for the social heritage (physical and social infrastructure) which is also necessary to obtaining their income.  Some of their income is unearned, just as a bandit’s income is unearned.  The result is that too little revenue, especially during recessions, is obtained for state and local governments to maintain and enhance our infrastructure, or even our safety net. 

 

Following Governor Gregoire’s lead, our state senate has produced a budget with no tax increases.  Our state senate has proposed that our current budget contain $1,380 million less for education (both K-12 and higher education) than is necessary to continue our previous spending pattern.  $786 less would be spent on health care oriented largely to our poorest people.  Other cuts would harm our disabled.  For more.  If enacted, our economy will be less efficient and our safety net less effective.  The house budget is similar.  Senate leader Lisa Brown has at least posed the question of whether we need to raise more revenue.  I wonder if our budget would be different if she were governor.

 

Conservatives and our media continually emphasize that spending has increased by a third over the last four years.  But spending four years ago was depressed due to the dot.com bubble collapse.  Compared with 1990s budgets, our recent budgets have not been higher than to account for inflation and changing needs.  The only way to maintain and improve our infrastructure and safety net (in the way they have traditionally been maintained and improved) is to substitute a fairer tax structure which produces more revenue, especially during recessions.  This requires substituting a progressive income tax for some of our regressive sales and property taxes. 

 

Tax reform depends upon advocacy by prominent citizens and citizen groups.  This depends upon educating their members and members of the general public.  This newsletter and a few other Liberal organizations are doing our part.  But many other plastic Liberal organizations focus upon small issues while ignoring the major obstacles to achieving our Liberal vision for Washington.  A Washington in which all people have equal opportunities and compassionate assistance is given to those who through no fault of their own have fewer opportunities.   A Washington in which an efficient productive economy produces more opportunity for all.

Washington State Labor Council decries budget cuts, but doesn’t endorse tax reform to fairly increase revenue.

Service Employees International Union (SEIU) Local 925 asks legislators to allow vote for new revenue.

"Now more than ever we need our public structures to provide security and opportunity to help people through these dark times," said Tony Lee, Advocacy Director at Solid Ground. Lee and other advocates are urging lawmakers to propose a reasonable solution to our budget crisis by considering all options, including raising revenue, in order to protect the economic security and health of our families, communities and the state.

Various Educational Associations and Labor Organizations have met to discuss tax increases, but apparently disagree about whether to increase existing regressive taxes or add a progressive income tax.  For more.

The Washington State Budget & Policy Center says the state needs leadership from our policymakers that includes bold action on raising the revenue necessary to invest in education, community, health, and security.  For More.

Fuse Washington finally says, “Urge them (legislators) to consider raising revenue to reduce the size of cuts to critical programs.” in an email, but not on their website.

HorsesAss blog and many who comment on it support a progressive income tax.  Majority Rules Blog includes King County LAC resolution asking Governor Gregoire to consider tax increases.  Chad Lukas wrote petition to Governor Gregoire to allow voters to decide about increasing taxes.

 

A Vision for Washington State Democrats?

 

In recent years (under the leadership of Frank Chopp), Democratic legislators have focused upon becoming a majority.  Carefully choosing legislation to pass which would build their support.  They have succeeded.  But in spite of the national and Washington wave of anti-Republican attitudes, they failed to increase their majority during our 2008 election.

 

At our national level, voters have responded to the shared vision offered by President Obama.  At our state level, our Democratic organization, Congress members, Executive and Legislative candidates offer no such vision.  Instead our Democratic political candidates and officials are individual political entrepreneurs who focus upon their particular narrow interests.  They tout their specific accomplishments instead of expressing a vision for our state.  We virtually never see joint manifestos by all or many of our Democratic congress members or our Democratic state legislators.

 

No long run strategy appears to improve our state or to remain in power.  They don’t even cooperate to play offense against potential Republican candidates for major offices, such as Rob McKenna, Reagan Dunn and Dan Roach.  Our governor and state legislators were largely blindsided by our economic recession and resulting state revenue shortfalls.  They appear to have no significantly different strategy for coping with it than we would expect from Republicans.  If so, they haven’t told us what these differences are.

 

Focusing upon short term winning is the Old Politics that Barack Obama denounced.  Expressing and implementing a vision for improving our country and state is the New Politics that he is bringing to the other Washington.  Let’s hope that some of our Democratic politicians bring New Politics to this Washington.

 

Featured Advocacy Group -------- Futurewise -------------------------------------

 

Futurewise is a statewide public interest group working to promote healthy communities and cities while protecting farmland, forests and shorelines today and for future generations.

We are the only statewide group in Washington working to ensure that local governments manage growth responsibly. Founded in 1990 as 1000 Friends of Washington, it changed its name in 2005  to better represent its mission.  Futurewise's organizing and advocacy work, public education and legal program, and the technical support that it provides local groups have become the foundation of good growth management in Washington. 

 

Futurewise has established an impressive track record on growth management issues as the state's primary advocate for smart growth policies.  Recent accomplishments include:

 

Building Healthy, Attractive Communities

·       Futurewise's work has led nine different cities to eliminate sprawl zoning and accommodate thousands of additional homes.

·       Futurewise has strengthened protections for environmentally sensitive areas in cities across the state.

·       Futurewise is evaluating and supporting reforms that reduce the barriers to and create incentives for desirable development.

·       Futurewise worked with the City of Bellevue to approve a proposal to add over five hundred units of housing along a key transit corridor.

·       Futurewise negotiated an agreement with the City of Bothell to fix zoning problems that prevented the construction of any affordable housing in Bothell.

 

Improving Transportation Choices

·       Futurewise convinced the Legislature to approve $750 million in new funding for transportation choices in 2005, including $58 million for a new safe routes to schools program, $50 million for special needs transit and a new Office of Mobility at the Department of Transportation.

·       Futurewise spearheaded the successful effort to defeat I-745 (an initiative that would have diverted Washington's public transit funding into road construction) - Tim Eyman's first electoral defeat.

·       Futurewise defended funding for light rail and other transit investments by defeating legislation aimed at forcing Sound Transit to spend nearly $60 million subsidizing utility companies.

·       Futurewise successfully refocused state level efforts to spend billions of dollars on wasteful freeway expansions into critical safety and maintenance projects.

 

Saving Open Spaces and Natural Places

·       In Pierce County we tripled the quantity of protected agricultural land to 30,000 acres, expanded buffers for over 1000 miles of streams and preserved over 400 acres of environmentally sensitive land and 300 acres of prime farmland from overdevelopment.

·       In Whatcom County we preserved two highly sensitive pieces of Puget Sound shoreline from urban development (Point Whitehorn and Birch Point), preserved 12,000 acres of rural land from overdevelopment and convinced the County Council to adopt a critical areas ordinance that greatly improves environmental protections.

·       In Walla Walla County we protected more than 770,000 acres of rural land from sprawl development.

 

The people of Washington are fortunate to have a Growth Management Act (GMA) that helps protect family farms and forests, drinking water and shorelines, and our quality of life. However, the state lacks the enforcement authority to ensure that city and county land use plans comply with the laws that protect our families and our communities.  The 2009 legislative session is underway and Futurewise is working to advance a legislative agenda that supports good growth management and prevents rollbacks of community protections.

 

Your voice is needed to protect our drinking water, farmlands and quality of life. The success of state and local land use issues rests on people like you who are active in their communities. Citizens can write letters to the editor of their newspapers; call, e-mail or meet with legislators; send written comments to their city and county; and testify at public hearings. When cities and counties choose not to comply with the law, it is up to citizens or citizen groups to appeal the plan.

 

There are many ways to get involved at Futurewise and with the work it does - please join it!  Sign up to be a part of its activist network and have your voice heard. Legislators, council members, and agency staff need to hear what you think as they make decisions about the future of your community.

·       Email chieu@futurewise.org to sign up for Action Alerts: Futurewise e-mails 1-2 alerts a month on issues that matter to you in your community.

·       Current Action Alerts: Learn about important issues and how to take action.

 

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Here’s the Beef

Fuse opposes cuts to education, but doesn’t suggest how to obtain funds to avoid cuts.

John Burbank supports professionalizing childcare workers.

Newspapers decline partly due to decreased investigative reporting.

Opinions differ concerning route of Eastside light rail into Bellevue City Center.

Bellingham shows the way to using sustainable local resources and products.

Our State Dept. of Agriculture has certified first organic restaurant:  Olympia’s ‘The Mark’

Green jobs may include loggers who preserve instead of cut trees.

Green dairies have many environmental and economic benefits.

New report cites many increasing costs that would result in Washington from climate warming.

Department of Energy will spend $2 billion stimulus money to clean up Hanford.

It may be impossible to clean up after a major oil spill in Puget Sound.

House Committee and Senate have approved a bill giving all marriage rights to domestic partners.

 

Nation and World  

 

Federal Budgeting for Dummies

 

The federal government's fiscal year begins on October 1st and ends on September 30th of the next calendar year.  The 2010 budget covers the period from October 1st, 2010 through September 30, 2011.

 

Authorization and Appropriations

In general, funds for Federal Government programs must be authorized by an authorizing committee through enactment of legislation. Then, through subsequent acts by Congress, budget authority is then appropriated by the Appropriations Committees of the House and Senate. In principle, committees with jurisdiction to authorize programs make policy decisions, while the Appropriations Committees decide on funding levels, limited to a program's authorized funding level, though the amount may be any amount less than the limit.

 

In practice, the separation between policy making and funding, and the division between appropriations and authorization activities are imperfect. Authorizations for many programs have long lapsed, yet still receive appropriated amounts. Other programs that are authorized receive no funds at all.  In addition, policy language -- that is legislative text changing permanent law -- is included in appropriation measures.

 

The way Congress develops tax and spending legislation is guided by a set of specific procedures laid out in the Congressional Budget Act of 1974. The centerpiece of the Budget Act is the requirement that Congress each year develop a “budget resolution” setting aggregate limits on spending and targets for federal revenue. The limits set by the budget resolution, along with a companion “pay-as-you-go” rule, apply to all tax or spending legislation developed by individual committees as well as to any amendments offered on the House or Senate floor.

·       The annual federal budget process begins with a detailed proposal from the President in February.  For more detail.

·       Congress next develops an authorizing blueprint called a budget resolution that sets limits on how much each committee can spend (or reduce revenues) over the course of the year.  This authorizing budget resolution is for guiding congressional appropriations committees and is not subject to presidential approval.

·       The terms of the budget resolution are then enforced against individual appropriations, entitlement bills, and tax bills on the House and Senate floors.

·       In addition, Congress sometimes uses a special procedure called “reconciliation” to facilitate the passage of deficit reduction legislation or other major entitlement or tax legislation.

·       Finally, a companion PAYGO rule helps ensure that tax cuts and entitlement increases are paid for and do not add to the deficit.  However, the PAYGO rule is not now in effect.  It may be reinstituted after our economy recovers.

For more.  For more.  For more.

 

President Obama’s Budget

Less than two months after taking office, President Obama has presented his preliminary 2010 budget, which provides the rationale for the 2010 budget, including 10 year projections, with proposed budget amounts for 2010 and following years.  Our house and senate are now deciding upon authorizing budgetary limits.  The budget resolution should be passed by April 15th.

 

For our 2010 budget year, the limits that are being decided appear to be largely in agreement with President Obama’s proposals.  Congress members who are most concerned about large budget deficits, even if temporary, have proposed eliminating or delaying authorizing 2011 funds for health care reform and cap and trade emissions control system.  Depending upon economic recovery and politics, these funds might be restored next year when the 2011 budget is decided.  They are also attempting to reduce the 2010 budget by about $100 billion.

 

In May, President Obama will present a much more detailed budget.  Congressional appropriations committees are already deliberating authorizations.  Congress hopes to pass all of its appropriations bills by the August recess.  Or at least before the October 1st beginning of our 2010 fiscal year.  If some bills are not passed by then (as has been typical in recent years), continuing resolutions will be passed to continue spending much as they were during the 2009 budget year.

 

So far it appears that the Republicans will just say no to Democratic proposals, such that the budget will be decided by Democrats.  If enough Republican senators can not be found to reach 60 votes, a procedure may be used which requires only 51 votes, with our vice president voting to break a tie.

 

Robert Kuttner: Essential Policies to Reform Our Economy

 

There are several radical remedies that cry out for presidential leadership. Some of them are essential if we are to get the economy into recovery. Others are long-deferred reforms that America needs to build an economy of broad prosperity. Here are 10:

·       Use Direct Government Loans to Refinance Mortgages.

·       Put Insolvent Banks into Government Receivership.

·       Nationalize the Federal Reserve.

·       Pass a Tobin Tax.

·       Put Tax and Regulatory Havens out of Business.

·       Enact a Carbon Tax.

·       Pass Comprehensive Pre-Kindergarten and High-Quality Child Care.

·       Guarantee Workers the Right to Join a Union.

·       Provide Health Insurance For All.

·       Use Very Large-Scale Public Works.

 

All of these ideas have four things in common. They are essential if we are to restore broadly shared prosperity. They are at the far fringes of political debate. They require dislodging the political influence of powerful lobbies. And they would be supported by a majority of Americans if a president decided to lead.

 

You will hear over and over from the political right that Obama is spreading himself too thin. They said that about Roosevelt. But a national economic crisis is a political moment for broad reform on multiple fronts.

 

Social Security was an impossibly radical idea until it was enacted. So was Medicare. And so were the great civil-rights acts of the 1960s. Then they suddenly became utterly main stream, so well entrenched in the hearts of Americans that they proved impossible to dislodge. But before they could be enacted, a titanic struggle was required, and a president had to decide to put his prestige on the line. That's the essence of progressive leadership.  To read Robert Kuttner’s entire commentary.

 

Japan Offers a Model for Financial Equality

The following are excerpts from a commentary by Sanford M. Jacoby and Sally Kohn.

 

While Japan has been used as a cautionary tale, in many ways even at the peak of its recession Japan remained better off than the United States today. Japan did not see its middle class disappear into swelling rates of poverty and unemployment. And Japan was not plagued by growing class resentment. Its inequality remained modest and its large corporations did not have bloated CEO salaries, including at those firms receiving government aid.

 

Why? Despite some changes in recent years, most large Japanese corporations still practice a form of capitalism in which different groups with a stake in the enterprise — owners, employees, managers, suppliers, creditors — work together to create value. Cooperation is possible because the various stakeholders have made long-term commitments to the firm. The result is a more holistic corporation, balancing short-term opportunities with long-term needs.

 

A large company in Japan is less likely to lay off thousands of employees simply to help its share price or to gut pension benefits to pay out higher dividends. In other words, Japanese corporations contribute to the common good rather than compete with it.

 

American corporations (including banks), under pressure from speculative investors, prioritize driving up short-term stock prices and dividends. Executives are "aligned" with shareholder interests through stock-based compensation. But this creates an incentive for executives to boost their own compensation by taking excessive risks and by manipulating share prices. Ultimately this harms the long-term health of companies and thus the long-term health of America's economy.

 

Toyota, for instance, refused to line investors' pockets and instead reinvested profits in capital improvements and in research and development, which led to the hybrid. By contrast, through the late 1990s, GM funneled billions of its profits to shareholders — as dividends and share buybacks — a fact often overlooked in discussions of what went wrong in Detroit.

 

In stakeholder capitalism, employees participate in corporate decision-making. While unions in both Japan and the United States have declined in recent years, the level of unionization in the United States today is about half that in Japan. And in nonunion Japanese corporations, human capital still is valued more deeply. Senior human-resource executives are far more influential than in comparable American companies, where it is chief financial officers who rule the roost.

 

And when corporations function as teams, fairness becomes an instinctive priority. In the United States in 2006, the average CEO earned more than 364 times the average U.S. worker — a huge increase from, say, 1980, when the differential was just 40 times more. Japan, on the other hand, has one of the lowest CEO pay gaps in the world, with chief executives earning on average 10 times more than the average worker.

 

Measurements of economic inequality find that wealth, too, is less unequally distributed in Japan. The United States ranks among the worst nations in terms of wealth inequality, at the end of the scale with South Africa and Iran.

 

Of course, Japan is not an economic paradise. About a third of the population works in "atypical" jobs that carry no promise of employment security. These workers, mainly women and young people, don't receive the same benefits the Japanese business model provides others. Just as women and African-American and Latino men face disproportionate discrimination in the U.S. labor market, Japan's inequities, while lower overall, still exist.

 

Nevertheless, lessons from Japan could strengthen the U.S. economy for generations to come. We can cut the gap between CEO and worker pay by giving shareholders a say in executive compensation, an idea that ideally will be ratified now that the SEC is under new management.

 

But we need to go further. For example, we need to revamp corporate charter laws to mandate stakeholder governance and corporate accountability, to adopt laws like the Employee Free Choice Act to strengthen employee representation and to tax unearned income at the same rates applied to wages and salaries.

 

Building Our New Economy

The following are excerpts from commentaries by Kurt Anderson and Harold Meyerson.

 

1950s and 1960s: Producing and Investing

When manufacturing companies dominated what was still a national economy in the 1950s and '60s, they favored and profited from improvements in America's infrastructure and education. The interstate highway system and the G.I. Bill were good for General Motors and for the U.S.A. From 1875 to 1975, the level of schooling for the average American increased by seven years, creating a more educated workforce than any of our competitors' had. Since 1975, however, it hasn't increased at all. The mutually reinforcing rise of financialization and globalization broke the bond between American capitalism and America's interests.

 

1980s through 2008: Borrowing and Spending

From 1980 to 2007, the median price of a new American home quadrupled. The Dow Jones industrial average climbed from 803 in the summer of 1982 to 14,165 in the fall of 2007. From the beginning of the '80s through 2007, the share of disposable income that each household spent servicing its mortgage and consumer debt increased 35%. Back in 1982, the average household saved 11% of its disposable income. By 2007 that number was less than 1%.

 

Until the late '80s, only Nevada and New Jersey had casinos, but now 12 states do, and 48 have some form of legalized betting.  From the beginning to the end of the long boom, the size of the average new house increased by about half.  The average American gained about a pound a year, so that an adult of a given age is now at least 20 lb. heavier than someone the same age back then. In the late '70s, 15% of Americans were obese; now a third are.  The average American gained about a pound a year, so that an adult of a given age is now at least 20 lb. heavier than someone the same age back then. In the late '70s, 15% of Americans were obese; now a third are.

 

Now everything really has changed.  More than a year into the Great Recession, we still aren't sure if there's a bottom in sight, and six months after the financial system began imploding, it's still iffy. The party is finally, definitely over.  Sustainability is going to be shaping individual and public-policy decisions.   Annual increases of 10% and 15% in real estate prices were not sustainable; endlessly lowering taxes and expanding government isn't sustainable; Medicare and the war on drugs as currently constituted are not sustainable.

 

Now What?

So what kind of capitalism shall we craft? Now that the market fundamentalism to which we've adhered for the past 30 years has -- by its own criterion of increasing shareholder value -- totally failed?

 

The German Example

Manufacturing has become too global to permit the United States to revert to the level of manufacturing it had in the good old days of Keynes and Ike, but it would be a positive development if we had a capitalism that once again focused on making things rather than deals. In Germany, manufacturing still dominates finance, which is why Germany has been the world's leader in exports.  German capitalism didn't succumb to the financialization that swept the United States and Britain in the 1980s, in part because its companies raise their capital, as ours used to, from retained earnings and banks rather than the markets. Company managers set long-term policies while market pressures for short-term profits are held in check. The focus on long-term performance over short-term gain is reinforced by Germany's stakeholder, rather than shareholder, model of capitalism: Worker representatives sit on boards of directors, unionization remains high, income distribution is more equitable, social benefits are generous. Nonetheless, German companies are among the world's most competitive in their financial viability and the quality of their products. Yes, Germany's export-fueled economy is imperiled by the global collapse in consumption, but its form of capitalism has proved more sustainable than Wall Street's.

So does Germany offer a model for the United States? Yes -- up to a point. Certainly, U.S. ratios of production to consumption and wealth creation to debt creation have gotten dangerously out of whack. Certainly, the one driver and beneficiary of this epochal change -- our financial sector -- has to be scaled back and regulated (if not taken out and shot). Similarly, to create a business culture attuned more to investment than speculation, and with a preferential option for the United States, corporations should be made legally answerable not just to shareholders but also to stakeholders -- their employees and community. That would require, among other things, changing the laws governing the composition of corporate boards.

 

The Scandinavian Example

In addition to bolstering industry, we should take a cue from Scandinavia's social capitalism, which is less manufacturing-centered than the German model. The Scandinavians have upgraded the skills and wages of their workers in the retail and service sectors -- the sectors that employ the majority of our own workforce. In consequence, fully employed impoverished workers, of which there are millions in the United States, do not exist in Scandinavia.

 

Stimulating Higher Earning

Making such changes here would require laws easing unionization (such as the Employee Free Choice Act, which was introduced this week in Congress) and policies that professionalize jobs in child care, elder care and private security. To be sure, this form of capitalism requires a larger public sector than we have had in recent years. But investing in more highly trained and paid teachers, nurses and child-care workers is more likely to produce sustained prosperity than investing in the asset bubbles to which Wall Street was so fatally attracted.

 

Would such changes reduce the dynamism of the American economy? Not necessarily, particularly since Wall Street often mistook deal-making for dynamism. Indeed, since finance eclipsed manufacturing as our dominant sector, our rates of intergenerational mobility have fallen behind those in presumably less dynamic Europe.

 

For a Sustainable Economy, we need:

Education, public and private investment to improve productivity

Unionization and income support to improve earnings

Affordable housing near jobs, accessible health care and conservation to reduce waste

Simpler lives less dependent upon consumption

 

Global recession provides opportunity to reverse culture of consumerism.

 

Providing Adequate Pensions

The following are excerpts from a commentary by Marie Cocco.

 

Most Americans now working can expect to have less income security in retirement than their parents.

The average annual Social Security benefit among current retirees now stands at $13,864 -- roughly what a minimum-wage worker earns in a year. Half of all people 65 and older have incomes of less than $17,382 a year.

 

Still, millions in the current Social Security generation have traditional pensions from unions or big corporations, which once took pride in offering a retirement plan that guaranteed a lifelong, monthly income to former workers. But today, such pensions are all but extinct, pushed into oblivion by a corporate strategy of lowering costs by shifting to 401(k) plans in which workers save for their own retirement and manage their own investments. No need to point out how this has worked: The median balance in family retirement accounts was $45,000 in 2007, according to the Federal Reserve. Now even those have shriveled with the stock market slide. And many employers have temporarily halted their matching contributions to 401(k)s as they weather the recession.

 

Labor unions and pension-rights activists are beginning to work together in much the same way that advocates of universal health care organized more than two decades ago: by compiling the cruel facts and trying to force policymakers to confront them. The Pension Rights Center and other groups have launched a campaign called "Retirement USA" with the goal of getting what they say should be a universal, secure and adequate retirement system in place. Generally speaking, their goal is to have a mandatory private pension system in which employees and employers both contribute; in which the pension is portable as people change jobs; and that is structured to provide lifetime monthly benefits after retirement.

 

If this sounds a lot like the only functioning part of the current retirement system -- Social Security -- that's because it is. If common sense were applied to the pension problem, we would find a way to use the current Social Security system -- which already is mandatory, portable between employers and has an administrative system for payroll deductions and benefits already in place -- and enrich its benefits.

 

Here’s the Beef

New clean elections bills have been introduced into congress.

Legislation introduced in congress to curtail Patriot Act’s abuses.

Many contracts require replacing rights to a fair trial with often unfair binding arbitration.

Amnesty International says Summit of the Americans should strongly support human rights.

Commercial media doesn’t correct false Conservative statements.

Investigative journalism need not depend upon commercial media.

Evangelical Christianity isn’t sustainable.

Consumer spending increases slightly.

Cheap Eats.

Hemp can provide economic stimulus through green jobs.

Medical house calls provide many advantages.

Infrastructure improvement requires more money, planning, technology and citizen involvement.

As part of economic recovery, we need to plan for more sustainable, livable and socially just cities.

People need to reduce their debts before they will use expanded credit.  More than expanding credit, we need more jobs and income so people can reduce their debts.

20,000 hedge funds may fold by end of 2009.

Our Federal Reserve needs fixing.

An immigration raid destroys a local community’s economy.

Plenty of racial inequalities persist.

Our Labor Department is failing to enforce minimum wage.

Main Street wages are crucial to creating a sustainable economy.

Health and Human Services Dept. reports health reform must stop increasing costs & reduced quality.

More funding for public defenders is needed to ensure justice.

Legislation introduced to prohibit predatory lending practices.

KBR’s lousy wiring of Iraq bathrooms is killing U.S. military personnel.

Spain and England are investigating torture, which may include U.S. officials.

In Spite of President Obama’s global popularity, our U.S. has lost a lot of credence.

 

Our Liberal Spirit

 

Thinking and Talking

 

In response to a gotcha question at the March 24th press conference, President Obama said, “It took us a couple of days because I like to know what I'm talking about before I speak.”  Some have recently commented that Obama often uses a teleprompter to present prepared addresses to live and electronic audiences.  When members of his audience ask him questions, he often hesitates and stammers a bit as he decides his response.  The result is that through all of his many addresses during the last several years, he has made surprisingly few gaffes.  Responding to his situation, he carefully presents (without clichés) answers that address issues in ways that his audiences appreciate.

 

This is a welcome contrast to television and radio talk shows in which pundits respond immediately, interrupting each other obviously not thinking through their thoughts.  If you like dramatic shouting matches in which the objective is for participants to one-up each other, you’ll like television and radio talk shows.  The nightly interviews, Bill Moyer’s interviews and Washington Week which appear on public television are exceptions.

 

As young children, we learn many scripts, including both cooperative and competitive approaches to interaction.  We learn cooperative ways to interact with others to exchange information and learn together.  We learn competitive ways to show that we are more intelligent and know more than the people with whom we interact.  We differ in the extent and circumstances in which we use these approaches.

 

I suspect most of us would admit that we sometimes talk without thinking.  We then find that we often say things that don’t reflect our considered ideas, irritate other people and regret that we spoke to swiftly.  Often after a conversation is over, we imagine what we wish we had said.   We may or may not apologize later and attempt to correct what we said.  We could benefit from adopting Obama’s emphasis upon getting it right the first time.

 

Recommended Books – See our list of books for liberals

Paul Wellstone, 2001, The Conscience of a Liberal

John Podesta, 2008, The Power of Progress.  How America’s Progressives Can (Once Again) Save Our Economy, Our Climate and Our Country.

 

Paul Wellstone presents his model for Liberal integrity, with grassroots campaigning.  Barack Obama did a superb job of grassroots campaigning, was less stridently Liberal in advancing his Liberal proposals. 

 

John Podesta attempts to differentiate Liberals and Progressives.  He describes Bill Clinton as a Progressive, although Clinton was often an un-ideological triangulator who focused upon his own success instead of building a Progressive movement.  Most useful are John Podesta’s recommendations for President Obama, including specially his foreign policy recommendations, many of which don’t appear in Mark Green’s and Michele Jolin’s book.

 

 

 

 

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