Monthly Archives: October 2012

U.S. not even close to being the most prosperous nation on earth

The United States is the most prosperous nation on earth.

This has become one of the most oft repeated lines in the catechism of Americanism that politicians never fail to dutifully recite. But as Bloomberg reports, the U.S. no longer even ranks in the top ten of such nations. The U.S. economy ranks lower than Thailand’s!

The U.S. slid from the top ten most prosperous nations for the first time in a league table which ranked three Scandinavian nations the best for wealth and wellbeing.

The U.S. fell to 12th position from 10th in the Legatum Institute’s annual prosperity index amid increased doubts about the health of its economy and ability of politicians. Norway, Denmark and Sweden were declared the most prosperous in the index, published in London today.

With the presidential election just a week away, the research group said the standing of the U.S. economy has deteriorated to beneath that of 19 rivals. The report also showed that respect for the government has fallen, fewer Americans perceive working hard gets you ahead, while companies face higher startup costs and the export of high-technology products is dropping.

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We are all from New Orleans now: Climate change, hurricanes and the fate of America’s coastal cities

Mike Tidwell writes: The presidential candidates decided not to speak about climate change, but climate change has decided to speak to them. And what is a thousand-mile-wide storm pushing 11 feet of water toward our country’s biggest population center saying just days before the election? It is this: we are all from New Orleans now. Climate change—through the measurable rise of sea levels and a documented increase in the intensity of Atlantic storms—has made 100 million Americans virtually as vulnerable to catastrophe as the victims of Hurricane Katrina were seven years ago.

Arriving atop fantastically warm water and aided by a full foot of sea-level rise during the last century, Hurricane Sandy is just the latest example of climate change’s impact on human society. Unless we rapidly phase out our use of fossil fuels, most Americans within shouting distance of an ocean will—in coming years—live behind the sort of massive levees and floodgates that mark Louisiana today.

The New York Academy Sciences has already begun examining the viability of three massive floodgates near the mouth of New York Harbor, not unlike the Thames River floodgate that protects London today. Another floodgate has been proposed for the Potomac River just south of Washington, fending against tsunami-like surge tides from future mega storms. Plus there will be levees—everywhere. Imagine the National Mall, Reagan National Airport and the Virginia suburbs—all well below sea level—at the mercy of “trust-us-they’ll-hold” levees maintained by the Army Corps of Engineers.

Oceans worldwide are projected to rise as much as three more feet this century—much higher if the Greenland ice sheet melts away. Intense storms are already becoming much more common. These two factors together will in essence export the plight of New Orleans, bringing the Big Easy “bowl” effect here to New York City and Washington, as well as to Charleston, Miami, New York and other coastal cities. Assuming we want to keep living in these cities, we’ll have to build dikes and learn to exist beneath the surface of surrounding tidal bays, rivers and open seas—just like New Orleans.

Meanwhile, it’s not our imagination that hurricanes have grown more ferocious than in the past. Multiple scientific studies in the past few years have found that rising sea-surface temperatures linked to global warming are causing an increase in the number of stronger hurricanes. Sandy, right now, is approaching the east coast atop Atlantic sea-surface temperatures a full five degrees Fahrenheit above normal. [Continue reading…]

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A big storm requires big government

A New York Times editorial says: Most Americans have never heard of the National Response Coordination Center, but they’re lucky it exists on days of lethal winds and flood tides. The center is the war room of the Federal Emergency Management Agency, where officials gather to decide where rescuers should go, where drinking water should be shipped, and how to assist hospitals that have to evacuate.

Disaster coordination is one of the most vital functions of “big government,” which is why Mitt Romney wants to eliminate it. At a Republican primary debate last year, Mr. Romney was asked whether emergency management was a function that should be returned to the states. He not only agreed, he went further.

“Absolutely,” he said. “Every time you have an occasion to take something from the federal government and send it back to the states, that’s the right direction. And if you can go even further and send it back to the private sector, that’s even better.” Mr. Romney not only believes that states acting independently can handle the response to a vast East Coast storm better than Washington, but that profit-making companies can do an even better job. He said it was “immoral” for the federal government to do all these things if it means increasing the debt.

It’s an absurd notion, but it’s fully in line with decades of Republican resistance to federal emergency planning. FEMA, created by President Jimmy Carter, was elevated to cabinet rank in the Bill Clinton administration, but was then demoted by President George W. Bush, who neglected it, subsumed it into the Department of Homeland Security, and placed it in the control of political hacks. The disaster of Hurricane Katrina was just waiting to happen.

The agency was put back in working order by President Obama, but ideology still blinds Republicans to its value. Many don’t like the idea of free aid for poor people, or they think people should pay for their bad decisions, which this week includes living on the East Coast.

Over the last two years, Congressional Republicans have forced a 43 percent reduction in the primary FEMA grants that pay for disaster preparedness. Representatives Paul Ryan, Eric Cantor and other House Republicans have repeatedly tried to refuse FEMA’s budget requests when disasters are more expensive than predicted, or have demanded that other valuable programs be cut to pay for them. The Ryan budget, which Mr. Romney praised as “an excellent piece of work,” would result in severe cutbacks to the agency, as would the Republican-instigated sequester, which would cut disaster relief by 8.2 percent on top of earlier reductions.

Does Mr. Romney really believe that financially strapped states would do a better job than a properly functioning federal agency? Who would make decisions about where to send federal aid? Or perhaps there would be no federal aid, and every state would bear the burden of billions of dollars in damages. After Mr. Romney’s 2011 remarks recirculated on Monday, his nervous campaign announced that he does not want to abolish FEMA, though he still believes states should be in charge of emergency management. Those in Hurricane Sandy’s path are fortunate that, for now, that ideology has not replaced sound policy.

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During Eid ‘truce’ an estimated 400 people killed in Syria

The Guardian reports: Syrian air force planes have launched dozens of attacks from Damascus to Aleppo as the truce declared for the Eid al-Adha Muslim holiday ended as it began – in violence.

Opposition activists reported 48 air strikes in a few hours while the UN and Arab League envoy, Lakhdar Brahimi, admitted that the four-day ceasefire had failed. “The situation is bad and getting worse,” he told reporters in Moscow after talks with the Russian foreign minister Sergei Lavrov. Russia is Syria’s closest and most supportive ally at the UN.

Air raids were reported overnight from the Damascus suburbs of Qaboun, Zamalka and Irbin and described by residents as the heaviest since planes and helicopters first bombarded pro-opposition parts of the Syrian capital in August.

In Jermana, near Damascus, a car bomb killed 11 people, including women and children, and injured 50 others, Syrian state media reported, blaming “terrorists” for deliberately breaching the truce.

Fighting was also reported from Homs, Idlib and Deir al-Zour on the Iraqi border.

The truce, for Eid al-Adha, the Muslim feast of the sacrifice which marks the end of the annual hajj pilgrimage to Mecca, began on Friday morning. An estimated 400 people have died during it. The Syrian Observatory for Human Rights said 110 people were killed on Sunday alone. Of those, 39 were civilians, 34 armed opposition fighters and 35 members of the state security forces, said the UK-based group. [Continue reading…]

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Documents found in meth house bare inner workings of dark money group

By Kim Barker, ProPublica, and Rick Young and Emma Schwartz, Frontline, October 29, 2012

This post was co-published with PBS’ Frontline.

The boxes landed in the office of Montana investigators in March 2011.

Found in a meth house in Colorado, they were somewhat of a mystery, holding files on 23 conservative candidates in state races in Montana. They were filled with candidate surveys and mailers that said they were paid for by campaigns, and fliers and bank records from outside spending groups. One folder was labeled “Montana $ Bomb.”

The documents pointed to one outside group pulling the candidates’ strings: a social welfare nonprofit called Western Tradition Partnership, or WTP.

Altogether, the records added up to possible illegal “coordination” between the nonprofit and candidates for office in 2008 and 2010, said a Montana investigator and a former Federal Election Commission chairman who reviewed the material. Outside groups are allowed to spend money on political campaigns, but not to coordinate with candidates.

“My opinion, for what it’s worth, is that WTP was running a lot of these campaigns,” said investigator Julie Steab of the Montana Commissioner of Political Practices, who initially received the boxes from Colorado.

The boxes were examined by Frontline and ProPublica as part of an investigation into the growing influence on elections of dark money groups, tax-exempt organizations that can accept unlimited contributions and do not have to identify their donors. The documents offer a rare glimpse into the world of dark money, showing how Western Tradition Partnership appealed to donors, interacted with candidates and helped shape their election efforts.

Though WTP’s spending has been at the state level, it’s best-known nationally for bringing a lawsuit that successfully challenged Montana’s ban on corporate spending in elections, extending the provisions of the U.S. Supreme Court’s landmark Citizens United decision to all states.

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Building a Yemeni state while losing a nation

Silvana Toska writes: During his recent visit to the United States, President Abed Rabbo Mansour Hadi of Yemen expressed his concerns that if the National Dialogue — a forum supposedly representing the major political players in Yemen — fails, Yemen could slide into a civil war that will be worse than those in Somalia or Afghanistan. Part of this rhetoric was strategic, intended to nudge the so-called “Friends of Yemen” to commit to much needed (although potentially pernicious) aid. Nevertheless, Hadi is only slightly exaggerating the dangers Yemen could face, and recent developments — such as the delay of the National Dialogue — make his predictions more worrisome.

Hadi, who ran unopposed in February, was elected after a prolonged stalemate since January 2011. The Gulf Cooperation Council (GCC)-engineered compromise that ensured the transfer of power from then President Ali Abdullah Saleh to Hadi helped avert the civil war that Yemen was dangerously skirting at that time. Many groups in Yemen, however, view the GCC deal as a failure and an imposition that ensured that formal and informal power remain in the hands of old elites. As the International Crisis Group (ICG) reports, Yemeni elites have kept their hold on power as they continue to play musical chairs with government positions. Meanwhile, the Houthi rebels in the North, the Hiraaki separatists in the South, as well as various youth groups who were the backbone of the early days of the revolution, are left out of the deal. [Continue reading…]

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Iran has drone photos of Israeli bases, says Iranian MP

Iran’s Mehr news agency reports: Member of Parliament Esmail Kosari announced on Sunday that Iran has photos of restricted areas in Israel, which were transmitted by a drone launched into Israeli airspace earlier this month.

On October 6, Israel shot down an Iranian-made drone operated by Hezbollah that had penetrated hundreds of kilometers into Israeli airspace and gotten very close to the Dimona nuclear plant without being detected by advanced Israeli and U.S. radar systems.

The drone transmitted photos of Israel’s “sensitive bases” said Kosari, who is a member of the Majlis National Security and Foreign Policy Committee.

“These aircraft transmit their photos… and now we have photos of restricted areas,” he added.

He also stated that Hezbollah possesses more advanced aircraft, adding, “That is why we say that if Israel intends to take the smallest action against us, we will respond to the regime within their territorial boundaries.”

He went on to say that Iran has the expertise to design and manufacture unmanned aerial vehicles (UAVs) that can carry weapons.

On Sunday, Iranian Defense Minister Ahmad Vahidi said Iran has manufactured UAVs that are far more advanced than the drone which the Hezbollah resistance movement recently sent into Israel.

In April, Iran announced it had started to back-engineer the RQ-170 Sentinel, a U.S. surveillance drone that was brought down by the armed forces of the Islamic Republic last year.

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Getting Iran to say ‘uncle’ might not be smart

Stephen Walt writes: What if our current policy towards Iran actually works, and Tehran gives in to every one of our demands? You’d think that would be a crowning diplomatic success, wouldn’t you? Think again. In fact, a one-sided triumph over Iran might solve little, because a deal dictated by Washington probably wouldn’t last.

Given where U.S. policy is today, there are two paths to a resolution of the Iranian nuclear issue. Both are inherently coercive. The first path is the one we are currently on: The United States and its allies keep ratcheting up economic sanctions until the Iranian economy collapses, accompanied by a fair amount of human suffering and untold deaths due to economic hardship. At that point, the clerical regime either says “uncle” or gets overthrown. In either case, whoever is in charge in Iran subsequently agrees to abandon all nuclear enrichment, get rid of all their current stockpile of enriched uranium, and dismantle all their centrifuges, with compliance to be verified by the United States and the IAEA.

In this scenario, a tightening vise of economic pressure will convince Iran to do what the late Muammar Qaddafi did in Libya in 2003 and abandon any interest in a nuclear capability. Unfortunately for us, Tehran has probably noticed what happened to him, which makes it less likely that they’d ever surrender in quite the same way.

The second path is the military option: The United States attacks Iran and destroys as much of its nuclear infrastructure as it can find. We also manage to convince Iran that we’ll keep coming back to repeat the job if they try to rebuild. In response, the clerical regime ignores the popular outrage that our attack would provoke and agrees to remain a non-nuclear power in perpetuity.

Let’s ignore for the moment the fact that U.S. intelligence services still believe that Iran is not actively seeking nuclear weapons at all, a view that our allies in Great Britain apparently share. Let’s also leave aside the question of whether either of these two paths is likely to succeed. Instead, let’s suppose one of them did, and Iran capitulated to our current demands. Would that be a good thing? I’m not so sure. [Continue reading…]

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Obama’s next war in Africa

Time reports: Why should Americans care about Mali? Many probably asked themselves that question during the last presidential debate, when Mitt Romney twice mentioned the northwest African nation, a place most Americans might be hard-pressed to locate on a map. Yet seven months after Islamic militant groups seized control of northern Mali, the Western-designed military strategy to push them out could have real consequences for future antiterrorist operations, including for the U.S., according to some analysts. As the pieces steadily fall into place for a military assault on northern Mali, the intervention could serve as a model for future conflicts, at a time when Americans and Europeans have no appetite to fight another war. “We’re moving to a form of intervention which is much more typical of the post-Afghanistan era than anything we have seen before,” says François Heisbourg, a special advisor to the Foundation for Strategic Research in Paris. “If you are looking at future military interventions, it will not be like Iraq and Afghanistan.”

The objective is clear: to seize back control of northern Mali — an area the size of Texas — and crush the Islamic militants who have controlled it since last April. As a measure of how urgent the West believes the situation is, U.S. Secretary of State Hillary Clinton landed in Algiers on Monday to try to lock in President Abdelaziz Bouteflika’s support for a military assault across his border, with an aide telling reporters on the plane headed to Algeria’s capital that the country was “a critical partner” in dealing with al-Qaeda in North Africa. And last Wednesday U.S. Secretary of Defense Leon Panetta told reporters in Washington that the U.S. had to “ensure that al-Qaeda has no place to hide and that we have to continue to go after them.”

That will not be easy — especially since no Western troops will be deployed on the ground. The plan, crafted in a frenzy of diplomatic activity in Africa during the past two weeks, will instead rely on about 3,200 West African troops, together with 3,000 Malian troops trained by the E.U. Many of the West African troops are Nigerian, who have little experience in fighting across the remote, vast desert that characterizes northern Mali. In a French-led resolution at the U.N. on Oct. 12, African countries have until late November to craft a plan to get the Islamic groups out of northern Mali. Behind the scenes, U.S. and French Special Forces are increasingly involved in training and advising African militaries, according to Heisbourg, in advance of the attack, which could come early next year. And French officials have said they would likely deploy unarmed surveillance drones of the kind the U.S. already has at hand in the area.

But all that leaves out the region’s biggest military player: Algeria. Until now, Bouteflika has vowed to sit out the conflict, just as he did in last year’s war against Muammar Gaddafi in next-door Libya. The Algerian leader has good reason to fear getting involved: an all-out war by Algeria against al-Qaeda could spark conflict at home, in a country that is still recovering from a bitter, bloody civil war during the 1990s that claimed at least 150,000 lives. Algerian officials last week announced they were deploying more troops along their 1,200-mile border with Mali, but only in order to stop Islamic militants from escaping to Algeria once a military assault begins. [Continue reading…]

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Homeland no more: The end of the two-state solution

Joseph Dana reviews Occupation Diaries by Raja Shehadeh: Where has all the excitement gone for statehood in the West Bank? A year ago in September there were festivities and public displays of hope on the streets of Ramallah; one year later, little attention was paid to Palestinian Authority (PA) President Mahmoud Abbas’s United Nations speech reiterating the need for an independent Palestinian state. Lackluster support for the PA should come as no surprise. In the past 12 months alone, the United States blocked the PA’s bid to declare statehood; Israel has intensified settlement growth while Israeli settlers have rampaged, destroying property and desecrating holy sites with impunity; the international community, focused on Iran and the threat of regional war, has stood idly by. An equitable two state solution between Israel and the Palestinians is all but dead.

Last month’s surprise economic protests are a stark reminder of the genuine discontent simmering in the West Bank, as well as the dire economic straits many Palestinians experience. Fed up with rising prices for goods and services, Palestinians rose up in sweeping protests throughout the major cities dotting the rugged landscape of the West Bank. Demonstrators stormed the municipality of Hebron while thousands threw shoes at a poster of former IMF official and current Palestinian Prime Minister Salam Fayyad. Riding a wave of media hysteria that the Arab Spring might have arrived in Palestine, the Associated Press referred to these protests as the largest against the Palestinian Authority in its 18-year history.

Yet seemingly as soon as these protests began, they were gone. Some in Ramallah believed they were a show to scare the international community into providing emergency aid to the Palestinian Authority, another way of perpetuating the status quo of dependent Palestinians. From this melancholy perspective, the protests were successful. Israel released 250 million shekels in tax revenue, while the European Union authorized 100 million euros for the fledging Palestinian Authority. While this round of protests might have been carefully scripted, there can be no doubt that they tapped into a large reservoir of deep Palestinian anger. [Continue reading…]

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The dangers of American exceptionalism

Janice Kennedy writes: My fellow North Americans, can we talk? Yes, I mean you, my starred-and-striped friends.

I’ve been mesmerized by the election campaign that will send you to the polls shortly, and I’d love to bounce an idea off you.

True, I’m an outsider. And I know what you think about outsiders, when you’re even aware they exist. (We Canadians sometimes get huffy that you pay no attention to us, but we shouldn’t. Unless you’re being attacked, you don’t pay attention to anyone beyond your borders.)

But I hope, as continental cousins, you’ll give me a moment of your time.

Here’s my idea. How about climbing down the hill? How about abandoning that shining city you love so much, and joining the rest of us here in the real world?

I realize that will be hard. The “city upon a hill” has been your informing inspirational metaphor since John Winthrop, the Puritan governor of the Massachusetts Bay Colony, invoked it in a 1630 sermon. Be a beacon unto the world, he urged the colonists. It’s a powerful image, crucial to your nation-building mythology. I can see why you’d be loath to abandon it.

But it’s time. American exceptionalism is no longer taking you where you need to be.

As long as you keep insisting you’re the biggest and best (a superiority complex that really grates on your world neighbours, whether in the Middle East or next door), your arrogant fantasy deprives you of the realities you need to fix your problems. In truth, you’re far from the best in many areas, as a brilliant essay in last Sunday’s New York Times suggested.

In The Opiate of Exceptionalism, reporter Scott Shane pointed to such things as the U.S. ranking in child poverty (34th of 35 countries); higher education among young adults (14th); infant mortality (worse than 48 other countries); incarceration rates, guns and obesity (top spot in all three).

And your cradle of modern democracy has become a sick joke, whether your gauge is woeful voter turnout (the U.S. ranks a distant last among G8 nations) or the plutocratic politics you have created.

But there has been no suggestion of such truths, from either party, during the campaign. In the presidential debates, there wasn’t even a hint that the U.S. is anything less than naturally the brightest and best. The mainstream credo of American exceptionalism means that some truths simply cannot be acknowledged.

In Tuesday’s debate (ostensibly about foreign policy, though the “foreign” seemed marginal), the president asked Mitt Romney how America can be expected to lead the world if it doesn’t maintain the world’s best school system — the assumption being that it’s already in place. Except it’s not.

Exceptionalism not only doesn’t recognize the truth, it doesn’t even accept that it might exist.

Nor does it accept abiding by the same rules that govern everyone else. Consider the murder of Osama bin Laden by Navy Seals — or other enemies, by drones — approved by a liberal president and applauded enthusiastically by Americans of all political stripes.

Romney (a classic exceptionalist, and not just because his Mormonism holds that the Garden of Eden was in Missouri) even voiced support for Obama’s kill missions during Monday’s debate. It is indeed desirable, he suggested from an ethical landscape shaped in the Wild West, to shoot up the bad guys.

In your city on the hill, might is usually right.

The thing is, you do yourselves no favours, at home or abroad, with your misplaced swaggering. We all like to think we live in “the greatest country in the world,” but only you Americans believe it wholeheartedly. Your claim to greatness is legitimate, but THE greatest? Ever? [Continue reading…]

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Thank you Vasili Arkhipov, the man who stopped nuclear war

Edward Wilson writes: If you were born before 27 October 1962, Vasili Alexandrovich Arkhipov saved your life. It was the most dangerous day in history. An American spy plane had been shot down over Cuba while another U2 had got lost and strayed into Soviet airspace. As these dramas ratcheted tensions beyond breaking point, an American destroyer, the USS Beale, began to drop depth charges on the B-59, a Soviet submarine armed with a nuclear weapon.

The captain of the B-59, Valentin Savitsky, had no way of knowing that the depth charges were non-lethal “practice” rounds intended as warning shots to force the B-59 to surface. The Beale was joined by other US destroyers who piled in to pummel the submerged B-59 with more explosives. The exhausted Savitsky assumed that his submarine was doomed and that world war three had broken out. He ordered the B-59’s ten kiloton nuclear torpedo to be prepared for firing. Its target was the USS Randolf, the giant aircraft carrier leading the task force.

If the B-59’s torpedo had vaporised the Randolf, the nuclear clouds would quickly have spread from sea to land. The first targets would have been Moscow, London, the airbases of East Anglia and troop concentrations in Germany. The next wave of bombs would have wiped out “economic targets”, a euphemism for civilian populations – more than half the UK population would have died. Meanwhile, the Pentagon’s SIOP, Single Integrated Operational Plan – a doomsday scenario that echoed Dr Strangelove’s orgiastic Götterdämmerung – would have hurled 5,500 nuclear weapons against a thousand targets, including ones in non-belligerent states such as Albania and China.

What would have happened to the US itself is uncertain. The very reason that Khrushchev sent missiles to Cuba was because the Soviet Union lacked a credible long range ICBM deterrent against a possible US attack. It seems likely that America would have suffered far fewer casualties than its European allies. The fact that Britain and western Europe were regarded by some in the Pentagon as expendable pawn sacrifices was the great unmentionable of the cold war.

Fifty years on, what lessons can be drawn from the Cuban missile crisis? One is that governments lose control in a crisis. [Continue reading…]

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The progressive case against Obama

Matt Stoller argues in favor of voting for a third party candidate — even when this may result in Mitt Romney becoming president. His argument hinges on this claim:

The case against Obama is that the people themselves will be better citizens under a Romney administration, distrusting him and placing constraints on his behavior the way they won’t on Obama. As a candidate, Obama promised a whole slew of civil liberties protections, lying the whole time. Obama has successfully organized the left part of the Democratic Party into a force that had rhetorically opposed war and civil liberties violations, but now cheerleads a weakened America too frightened to put Osama bin Laden on trial. We must fight this thuggish political culture Bush popularized, and Obama solidified in place.

Stoller’s reasons for opposing Obama are cogent and persuasive, but whether a President Romney would have the mobilizing effect on the opposition that Stoller envisages is debatable.

Stoller writes: A few days ago, I participated in a debate with the legendary antiwar dissident Daniel Ellsberg on Huffington Post live on the merits of the Obama administration, and what progressives should do on Election Day. Ellsberg had written a blog post arguing that, though Obama deserves tremendous criticism, voters in swing states ought to vote for him, lest they operate as dupes for a far more malevolent Republican Party. This attitude is relatively pervasive among Democrats, and it deserves a genuine response. As the election is fast approaching, this piece is an attempt at laying out the progressive case for why one should not vote for Barack Obama for reelection, even if you are in a swing state.

There are many good arguments against Obama, even if the Republicans cannot seem to muster any. The civil liberties/antiwar case was made eloquently a few weeks ago by libertarian Conor Friedersdorf, who wrote a well-cited blog post on why he could not, in good conscience, vote for Obama. While his arguments have tremendous merit, there is an equally powerful case against Obama on the grounds of economic and social equity. That case needs to be made. For those who don’t know me, here is a brief, relevant background: I have a long history in Democratic and liberal politics. I have worked for several Democratic candidates and affiliated groups, I have personally raised millions of dollars for Democrats online, I was an early advisor to Actblue (which has processed over $300 million to Democratic candidates). I have worked in Congress (mostly on the Dodd-Frank financial reform package), and I was a producer at MSNBC. Furthermore, I aggressively opposed Nader-style challenges until 2008.

So why oppose Obama? Simply, it is the shape of the society Obama is crafting that I oppose, and I intend to hold him responsible, such as I can, for his actions in creating it. Many Democrats are disappointed in Obama. Some feel he’s a good president with a bad Congress. Some feel he’s a good man, trying to do the right thing, but not bold enough. Others think it’s just the system, that anyone would do what he did. I will get to each of these sentiments, and pragmatic questions around the election, but I think it’s important to be grounded in policy outcomes. Not, what did Obama try to do, in his heart of hearts? But what kind of America has he actually delivered? And the chart below answers the question. This chart reflects the progressive case against Obama.

The above is a chart of corporate profits against the main store of savings for most Americans who have savings — home equity. Notice that after the crisis, after the Obama inflection point, corporate profits recovered dramatically and surpassed previous highs, whereas home equity levels have remained static. That $5-7 trillion of lost savings did not come back, whereas financial assets and corporate profits did. Also notice that this is unprecedented in postwar history. Home equity levels and corporate profits have simply never diverged in this way; what was good for GM had always, until recently, been good, if not for America, for the balance sheet of homeowners. Obama’s policies severed this link, completely.

This split represents more than money. It represents a new kind of politics, one where Obama, and yes, he did this, officially enshrined rights for the elite in our constitutional order and removed rights from everyone else (see “The Housing Crash and the End of American Citizenship” in the Fordham Urban Law Journal for a more complete discussion of the problem). The bailouts and the associated Federal Reserve actions were not primarily shifts of funds to bankers; they were a guarantee that property rights for a certain class of creditors were immune from challenge or market forces. The foreclosure crisis, with its rampant criminality, predatory lending, and document forgeries, represents the flip side. Property rights for debtors simply increasingly exist solely at the pleasure of the powerful. The lack of prosecution of Wall Street executives, the ability of banks to borrow at 0 percent from the Federal Reserve while most of us face credit card rates of 15-30 percent, and the bailouts are all part of the re-creation of the American system of law around Obama’s oligarchy. [Continue reading…]

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The price of a black president

Frederick C Harris writes: When African-Americans go to the polls next week, they are likely to support Barack Obama at a level approaching the 95 percent share of the black vote he received in 2008. As well they should, given the symbolic exceptionalism of his presidency and the modern Republican Party’s utter disregard for economic justice, civil rights and the social safety net.

But for those who had seen in President Obama’s election the culmination of four centuries of black hopes and aspirations and the realization of the Rev. Dr. Martin Luther King Jr.’s vision of a “beloved community,” the last four years must be reckoned a disappointment. Whether it ends in 2013 or 2017, the Obama presidency has already marked the decline, rather than the pinnacle, of a political vision centered on challenging racial inequality. The tragedy is that black elites — from intellectuals and civil rights leaders to politicians and clergy members — have acquiesced to this decline, seeing it as the necessary price for the pride and satisfaction of having a black family in the White House.

These are not easy words to write. Mr. Obama’s expansion of health insurance coverage was the most significant social legislation since the Great Society, his stimulus package blunted much of the devastation of the Great Recession, and the Dodd-Frank financial overhaul added major new protections for consumers. His politics would seem to vindicate the position of civil rights-era leaders like Bayard Rustin, who argued that blacks should form coalitions with other Democratic constituencies in support of universal, race-neutral policies — in opposition to activists like Malcolm X, who distrusted party politics and believed that blacks would be better positioned to advance their interests as an independent voting bloc, beholden to neither party.

But the triumph of “post-racial” Democratic politics has not been a triumph for African-Americans in the aggregate. It has failed to arrest the growing chasm of income and wealth inequality; to improve prospects for social and economic mobility; to halt the re-segregation of public schools and narrow the black-white achievement gap; and to prevent the Supreme Court from eroding the last vestiges of affirmative action. The once unimaginable successes of black diplomats like Colin L. Powell, Condoleezza Rice and Susan E. Rice and of black chief executives like Ursula M. Burns, Kenneth I. Chenault and Roger W. Ferguson Jr. cannot distract us from facts like these: 28 percent of African-Americans, and 37 percent of black children, are poor (compared with 10 percent of whites and 13 percent of white children); 13 percent of blacks are unemployed (compared with 7 percent of whites); more than 900,000 black men are in prison; blacks experienced a sharper drop in income since 2007 than any other racial group; black household wealth, which had been disproportionately concentrated in housing, has hit its lowest level in decades; blacks accounted, in 2009, for 44 percent of new H.I.V. infections. [Continue reading…]

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Obama’s squandered advantages

Frank Bruni writes: After “a couple of Cadillacs,” a summer belly-flop abroad, a dismissive swipe at 47 percent of the population and a convention best remembered for Clint Eastwood’s chat with a chair, Mitt Romney is seemingly tied with President Obama. He has a real chance. It’s a remarkable turn of events, given how many errors he’s made and how ill suited he is to this particular juncture in the American story. And to size up the situation honestly is to consider one conclusion as seriously as any other:

Obama isn’t quite the candidate, or politician, he’s cracked up to be. The One is a fraction of his reputed self.

Yes, I know: the economy. It’s supposedly the source of most of his woes, the great weight he lugs around, a nearly fatal handicap. And the fact that he’s doing as well as he is affirms the sway of his personality and sense of his policies, at least according to his most fervent admirers.

I don’t buy it. For starters, a great many Americans understand that he doesn’t bear primary responsibility for the high rate of unemployment and the drops in home prices and incomes. A CNN/ORC poll last month showed that 54 percent of likely voters placed the blame chiefly on George W. Bush and Republicans.

Additionally, 68 percent indicated some optimism about economic conditions, which they said would be “somewhat good” or “very good” in a year. There’s room in those numbers for Obama to pull well ahead of a rival as profoundly flawed as Romney. Yet he hasn’t. [Continue reading…]

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