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The Chamber of Commerce Wants to Slash COVID-19 Relief Checks. We Can't Let Them. Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=56455"><span class="small">Andrew Perez, Jacobin</span></a>   
Friday, 05 February 2021 14:10

Excerpt: "The US Chamber of Commerce is pushing Democrats to slash COVID-19 relief checks for millions of people. And corporate Democrats appear to be listening."

Stimulus check. (photo: AP)
Stimulus check. (photo: AP)


The Chamber of Commerce Wants to Slash COVID-19 Relief Checks. We Can't Let Them.

By Andrew Perez, Jacobin

05 February 21


The US Chamber of Commerce is pushing Democrats to slash COVID-19 relief checks for millions of people. And corporate Democrats appear to be listening.

he nation’s biggest business lobby is pushing Democrats to slash COVID-19 relief checks for middle-class families, despite new census data showing that nearly half of those families have lost income because of the pandemic. Top Democrats are now reportedly considering excluding millions of those families from the checks, and President Biden himself has said he is willing to negotiate with Republicans on limiting eligibility for the checks.

The US Chamber of Commerce, which spent $82 million lobbying in Washington last year, sent a letter to the White House and Congress on Tuesday urging them to consider “targeting any additional stimulus checks based on income, loss of employment, or similar criteria.”

The corporate lobbying group — whose members undoubtedly benefit from a desperate workforce — attempted to twist census data showing broad economic devastation to make the point that families earning more than $50,000 don’t need new survival checks.

“While the pandemic induced recession has created near unprecedented levels of hardship, the impact has not been universal,” the chamber wrote. “The Census Bureau Pulse survey indicates that while a majority of households with less than $50,000 in income have experienced a loss of employment income, a majority of household with more than $50,000 in income — including those between $50,000 and $150,000 — have not experienced any loss in earned income.”

This is a misleading way to frame the census survey results. Recent census data shows that 45 percent of households earning between $50,000 and $150,000 have experienced a loss of employment income since March 2020 — including 48 percent of households earning between $50,000 and $75,000. Nearly a quarter of households earning between $50,000 and $150,000 say they expect to lose employment income over the next four weeks.

The chamber is adding its voice to a chorus of pleas in the Beltway to limit who’s eligible for COVID-19 relief checks. The campaign was first kicked off by discredited austerity economist Larry Summers and columnists at the Washington Post and Bloomberg News, which are owned by billionaires Jeff Bezos and Mike Bloomberg, respectively.

President Biden’s COVID-19 relief plan would send full $1,400 survival checks to individuals earning up to $75,000 and couples earning up to $150,000. Sen. Joe Manchin (D-WV) has repeatedly demanded the relief checks be more “targeted.”

Senate Republicans on Monday proposed that Congress limit full stimulus checks to individuals earning up to $40,000 and couples earning $80,000 — a move that would deny checks to an additional eighty million people, according to the Institute on Taxation and Economic Policy.

The White House indicated it doesn’t support the GOP’s proposed income caps, but Biden and his team have continually said they are open to further limiting eligibility.

The Washington Post’s Jeff Stein reported on Tuesday that some senior Democrats are “looking at lowering threshold on stimulus payments so they start phasing out above $50K for single taxpayers; $75K for heads of households; & $100K for married couples.” He cautioned the talks are still “fluid.”

At the same time, top congressional Democrats are floating new tax cuts that could primarily benefit the wealthy.

The campaign to limit survival check eligibility was recently boosted by a study by economists at Opportunity Insights, a Harvard University think tank bankrolled by the family foundations of billionaires Mark Zuckerberg, Bloomberg, and Bill Gates.

The study, based on consumer spending data, found that “households with incomes above $78,000 will spend only $45 of the $600 payments they received” within the first month of the checks being sent. The authors wrote that “these households have largely returned to work, and have even accrued additional savings.”

While lower-income households have been disproportionately affected by the pandemic, census data suggests that huge swaths of Americans, across income levels, have been impacted by COVID-19.

Democrats just took control of the US Senate because they won two miracle runoff races in Georgia last month, campaigning at all levels on a promise to give voters $2,000 checks (not $1,400).

Fifty-three percent of all Georgia households have reported losing employment income during the pandemic, including 51 percent of Georgia households earning between $50,000 and $150,000.

The Opportunity Insights study notably lumps together all households earning more than $78,000, when census data indicates that families earning between $75,000 and $150,000 are significantly more likely to have experienced a loss in income during the pandemic than households earning more than $200,000.

There’s one glaring problem with the push to limit who receives a survival check. Eligibility for the next checks will be determined based on 2019 tax returns — before the pandemic started.

“People have not filed their taxes for 2020, meaning that targeted checks would go out based on income information that is now one to two years out of date, with a pandemic and mass job loss having occurred in the interim,” Matt Bruenig of the People’s Policy Project told the Washington Post.

“This is not targeting,” he said. “It is the illusion of targeting, an illusion that will end up hurting tens of millions of people who are currently in need but weren’t in 2019.”

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FOCUS: Surprise! Surprise! Republicans Care About Deficits Again! Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=58213"><span class="small">Al Franken, Rolling Stone</span></a>   
Friday, 05 February 2021 13:36

Franken writes: "Lately, it seems, Republicans have taken renewed interest in deficits and our growing national debt. That's because a Democrat is in the White House."

Sen. Mitch McConnell. (photo: Getty)
Sen. Mitch McConnell. (photo: Getty)


Surprise! Surprise! Republicans Care About Deficits Again!

By Al Franken, Rolling Stone

05 February 21


Al Franken: The GOP only cares about deficits when Democrats hold the Oval Office

n Monday, President Biden met with 10 supposedly moderate Republicans in the Oval Office to discuss their scaled-down $618 billion Covid-relief proposal. Even though the economy is still reeling from the pandemic and tens of millions of Americans are struggling to feed their families and put a roof over their heads, they are very concerned about the $1.9 trillion price tag on Biden’s plan. Lately, it seems, Republicans have taken renewed interest in deficits and our growing national debt. That’s because a Democrat is in the White House.

When a Republican is president, deficits don’t matter. In fact, that means it’s time to cut taxes — on the wealthy. Republicans’ purported thinking is that tax cuts on high-income earners will incentivize economic growth and thus, as calculated through something called “dynamic scoring,” will produce far more revenue, which in turn more than pays for the tax cuts. This actually never happens. Remember the Laffer Curve? If not — look in the dictionary under “discredited.”

You may remember that I wrote a book titled Rush Limbaugh Is a Big Fat Idiot and Other Observations. Undertaking the painstaking — I’m sorry, painful — research, Rush did make an arguably valid point about the Laffer Curve. “If you had to pay a 100 percent tax rate on your income, you wouldn’t work!” Of course, Rush was absolutely right. Almost everyone should pay somewhere between 0 percent and 100 percent in order to optimize productive economic activity and everyone’s well-being.

And, yes, out-of-control debt can be an existential threat to a nation. The question becomes: “When is it out of control?” To Republicans, the answer is simple: “When a Democrat is president.”

The record, of course, is almost exactly the opposite. The national debt nearly tripled under Ronald Reagan, who gave huge tax cuts almost exclusively to the top of the income ladder. (In fact, because of a substantial increase in the payroll tax, taxes actually went up for the bottom 40 percent.)

During George H.W. Bush’s single term, the national debt increased by 54 percent. Without a single Republican vote, Bill Clinton increased marginal tax rates for the affluent at the beginning of his two terms. Instead of leading to a recession, as every Republican House and Senate member had predicted, we experienced eight straight years of marked economic growth and a balanced budget with a surplus that George W. Bush inherited.

During his first debate with Al Gore, W. touted his tax-cut proposal: “By far the vast majority of my tax cut goes to those at the bottom.” Not just “a majority.” Not “a vast majority.” But “by far a vast majority.” Not one of those was true. In fact, the vast majority of the Bush tax cuts went to those at the top. When W. took office, Federal Reserve Chairman Alan Greenspan endorsed Bush’s tax cut not only as fiscally prudent, but necessary. The looming budget surpluses, Greenspan feared, would pay off the entire federal debt before the end of the decade! If the surpluses didn’t end when our debt was paid off, it could cause serious economic disruption. Large tax cuts, Greenspan said, were necessary to avoid that catastrophe.

That particular catastrophe certainly was avoided. By the time George W. Bush handed off the worst economy since the Great Depression to Barack Obama, the national debt had again doubled, and Americans were losing 800,000 jobs a month. I was in a recount at that moment, and Arlen Specter was still a Republican. Which meant that Democrats were two votes short of the 60 needed to stop any Mitch McConnell-led filibuster. Even before Obama had taken his oath of office, McConnell told his caucus that their goal was to make sure that he was a one-term president. To that end, and because of a suddenly revived concern about our national debt, McConnell and his caucus kept rejecting White House stimulus-package proposals.

Finally, with three votes from Specter, Susan Collins, and Olympia Snowe, the Senate passed a pared-down $787 billion package that added tax cuts and reduced the Obama plan’s infrastructure spending. Not one House Republican voted for the bill.

After I was finally was sworn in on July 7th, a senior Democratic colleague told me that the Senate was the worse it had ever been. Everyone agreed except Carl Levin of Michigan, who said, “Well, it’s been worse.”

“When?” I asked.

“1856,” replied Carl.

“Charles Sumner?”

“Yes.”

In 1856, abolitionist Sen. Charles Sumner of Massachusetts was savagely “caned” within an inch of his life by Rep. Preston Brooks of South Carolina.

Things get worse.

Of course, things have gotten much worse in the Senate since Carl told me things were somewhat better there than they had been in the lead-up to the Civil War. These days, Republican senators are perfectly willing to undermine Americans’ faith in our democracy.

In early 2010, Alan Simpson and Erskine Bowles released a detailed plan to reduce the national debt as a percentage of GDP. Simpson-Bowles had some very good things in it — it would tax capital gains and dividends as ordinary income. It assumed the Bush tax cuts would expire at the end of 2012, and use that as a baseline.* It had some very bad things in it. It would reduce student loans. It would decrease Social Security benefits by tying cost of living adjustments to the Consumer Price Index.

*“Baseline” takes a bit of explanation. Simpson-Bowles assumed that the Bush tax cuts would expire as scheduled in 2012, and made its computations using the pre-Bush tax rates as a “baseline.” But the Bush tax cuts were extended during the 2010 lame duck session, and the baseline shifted. As Mitt Romney’s running mate, Paul Ryan would use “baseline” to get out of any tight spot whenever pressed about his bogus budget numbers. “It depends on which baseline you use,” was Ryan’s escape hatch. Interviewers knew that any follow-up would elicit a deliberately tedious, time-killing explanation of baselines guaranteed to send their audience elsewhere.

Simpson-Bowles was also a way for members of Congress to virtue-signal about getting the debt under control. Thing was, we were still in the middle of the worst economic crisis since the worst economic crisis in our history. It didn’t seem to me to be the right time to trim our sails.

Nevertheless, Republicans, who hated many of its provisions, professed to be Simpson-Bowles supporters. Some Democrats did as well to demonstrate their seriousness about fiscal responsibility. There seemed to be some opportunity here for bipartisanship, and some months later, Mark Warner of Virginia and Lamar Alexander of Tennessee formed a bipartisan group to discuss stuff that we could maybe agree on.

Mark was nice enough to invite me, and I was very happy to go. I genuinely liked a number of my Republican colleagues. My wife, Franni, and I and Tom and Jill Udall would regularly join Republicans Mike and Stephanie Johanns of Nebraska and Mike and Diana Enzi of Wyoming for dinner at one another’s homes. The Enzis and the Frankens threw pizza dinners for each class of Senate pages. Once Diana proudly told the pages that, when she and Mike were back home in Wyoming, they never asked folks whether they were Republicans or Democrats. “You don’t have to,” I interjected, “they’re all Republicans.”

I’m afraid I kind of blew it at the meeting. I noticed right away that my late colleague, Tom Coburn of Oklahoma, was there. Tom, an ob-gyn before he got into politics, was known as “Dr. No” because he was the most committed deficit hawk in the Senate and would routinely place a “hold” on any bill that would add a dime of new spending.

As I listened to the discussion, it began to dawn on me that the Republicans were simply committed to making it impossible for Obama to succeed. Unemployment was still above nine percent. These Republicans had all been cheerleaders for the Bush tax cuts. And none that I could remember had said a peep in 2004 when former Treasury Secretary Paul O’Neill revealed that Dick Cheney had informed him that “deficits don’t matter.”

As with many such things in the Senate, the meeting wasn’t really on the level. Or so it seemed to me. It did occur to me later that I hadn’t needed to share that with all of them. I wasn’t invited back.

After Republicans flipped the House in 2010, everything became increasingly difficult. In 2011, House Republicans put a gun to the collective noggin of the Democratic Senate and President Obama by threatening to default on our debt by refusing to raise the debt ceiling. At the 11th hour, Democrats agreed to what became known as “sequestration,” which mandated about $100 billion in cuts annually, almost all in discretionary spending.

My Republican colleagues were shocked when Obama won re-election. The economy continued to recover, and when Donald Trump took the oath of office for his first and only term as chief executive, he inherited 76 straight months of economic growth.

And worse.

Like W., Trump campaigned promising a tax cut geared to low- and middle-income Americans. And like Bush, he was bullshitting.

During the floor debate on the Republicans’ 2017 tax cut, I approached Tim Scott of South Carolina, their floor manager for the bill. “You know, this is going to explode the deficit.”

Tim told me it wouldn’t because of — wait for it — dynamic scoring.

“No,” I insisted. “Your own Congressional Budget Office says it will create another $1.9 trillion in debt.” The CBO is the nonpartisan agency that provides Congress with budget and economic research. I used “your own” CBO because, holding majorities in both the House and Senate, Republicans had chosen the CBO director. And when the CBO “scored” the Republican tax cut, it estimated that it would add $1.9 trillion to our national debt.

I’d previously had just enough conversations with Tim to know a few things. Despite all historical evidence to the contrary, he really did believe that this new tax cut would pay itself. But even if it didn’t, that would be OK with him. Not that he liked federal debt. But it did serve as a great excuse to impose severe limits on spending. You see, Tim is of the Grover Norquist “I want to reduce the size of government to where I can drag it into the bathroom and drown it in the bathtub” variety.

During one of our discussions on the floor, Tim even told me that he didn’t believe that government created any jobs. Forgetting for the moment that both of us had government jobs, I mentioned the Erie Canal. Also, rural electrification. And the transcontinental railroad. Oh, and how ‘bout the interstate highway system? The space program. (I knew Tim enjoyed watching live sports carried by satellite.) And the internet (formerly known as the Internet).

Cleverly, right there on his feet, Tim revised his economic thesis to an equally ridiculous claim — that the government doesn’t create any net jobs. You see, government investment in each of the things I‘d mentioned could have been replaced by far more efficient private investment. Who knows? Maybe we’d have landed a man on the moon during the Roaring Twenties! How great would it have been to see astronauts dance the Charleston at zero gravity?!

As it would turn out, the enormous tax cut had, at first, some stimulative effect. The private sector invested some of its newfound tax savings on capital equipment, hiring, and even some modest increases in wages — mostly one-time bonuses. But mainly, corporate America was using its windfall, as predicted, on stock buybacks. The market continued to shoot up, which was particularly good news for the 10 percent of Americans who own north of 80 percent of all stock-market wealth.

As for national debt? By October 2019, before the coronavirus pandemic was something Trump could not even dream of bungling, the CBO projected the U.S. deficit for the year to hit $984 billion, almost $300 billion more than the CBO had predicted prior to the 2017 Tax Cut and Jobs Act. Meanwhile, job growth in the first three years of the Trump administration was proceeding at a slower pace than it had during the previous three years of the Obama administration.

And then came 2020.

The United States entered the decade last among developed nations in income and wealth inequality. Or, I guess, first. By far!

For the moment, let’s put aside Trump’s criminally negligent handling of the coronavirus. Oh, let’s not.

In the past, the United States would have led a global effort to fight a global pandemic. During the 2014 Ebola crisis, the CDC was the first to identify what was happening in Liberia. The CDC moved in. Our military put up hospitals, and our public-health and medical professionals led a truly global effort to treat the sick and dying and successfully contained the outbreak to West Africa. In the end, two Americans died of Ebola.

In contrast, when Covid hit the United States, Trump punted responsibility to the states. It’s as if FDR had said after Pearl Harbor, “This is pretty much Hawaii’s problem.”

By March, Congress and the White House had agreed to a $2 trillion package to help Americans through the pandemic. Individuals earning less than $75,000 a year would receive a check for $1,200. There was $250 billion to add an additional $600 weekly to unemployment checks. $150 billion for state and local governments, and $130 billion for hospitals. In April, there was an additional $484 billion for the Paycheck Protection Program, and $75 billion more for hospitals and a woefully underfunded, terribly administered testing program.

Inexplicably, $70.3 billion would go to real estate investors in the form of restored tax breaks. Nearly 82 percent of those benefitting would receive $1 million or more, according to the House and Senate’s nonpartisan Joint Committee on Taxation.

So much for Congress’ laser focus on making sure low- and middle-income Americans could make it through the pandemic.

Fortunately, Trump told us, Covid would be all over by Easter, and urged Americans to celebrate the Resurrection by crowding into church pews around the nation.

By July 22nd, after the numbers of American dead from Covid had reached nearly 150,000, a Texas senator named Ted Cruz let everyone know that the whole thing was a big hoax:

“I guarantee you the week after the election, suddenly all those Democratic governors, all those Democratic mayors, will say, ‘Everything’s magically better. Go back to work. Go back to school. Suddenly all the problems are solved.’ You won’t have to wait for Biden to be sworn in. All they’ll need is Election Day and suddenly their willingness to just destroy people’s lives and livelihoods, they will have accomplished their task.”

To Cruz’s credit, three days after the election, he apologized and humbly asked for forgiveness.

No. Wait. I’m wrong.

Thank God for my fact-checker.

And still worse.

Unlike Trump and Cruz, Democrats in Congress had been paying attention to science and scientists and understood that the coronavirus pandemic would continue to infect and kill a staggering number of Americans and continue to economically devastate tens of millions of families through no fault of their own. On May 15th, the Democratic House passed a second $2 trillion Covid-relief package to help them through the months ahead.

But Senate Republicans and the Trump White House refused to act.

The growing economic disparities of the past four decades exploded in 2020 — the fault of nobody. Except Donald Trump and everyone who blindly followed his lead.

This includes every Republican in Congress.

Even as he gave his rambling farewell speech to a small gathering at Andrews Air Force Base, Trump felt the need to brag about the stock market’s record highs, omitting the fact that by far the vast majority of the benefit was going to those at the top.

Americans at the bottom end have not fared so well. Especially black and brown ones. If one suspected that the death rates from Covid-19 might reflect this country’s profound economic and health disparities by race and ethnicity, one would be correct.

Black Americans continue to die of Covid at about twice the rate of white Americans. Native Americans and Latinos are also dying at highly disproportionate rates compared to whites. That said, as of this writing, just more than 200,000 white Americans have died of Covid. The United States has four percent of the world’s population and, approximately, 20 percent of its coronavirus fatalities.

France, Germany, Denmark, Britain, and other developed countries decided to take over the payrolls of struggling companies, paying workers to stay home in order to slow the spread of the virus while averting the kind of economic uncertainty and hardship so many Americans have experienced. While other developed nations made sure to carry their citizens throughout this once-in-a-century calamity, food insecurity has tripled in the United States.

But then again, there’s the S&P 500.

Only after it had become clear that control of the U.S. Senate would depend on the outcome of the Georgia runoffs, Republicans finally saw the wisdom of a relief package to help Americans struggling to feed their families and keep a roof over their heads. Not too generous, though. While many professed to believe that the election had been stolen, the non-crazy ones knew that Biden would be the next president. Let’s not get carried away with helping people. Just enough to win the two Georgia seats. Yeah! That’s a good plan!

The repair that is long overdue:

Tax fairness, investment in human capital and infrastructure, reforms in labor law and in our electoral process, childcare, racial justice, and a return of some sense of respect and fair play. (See Merrick Garland and Amy Coney Barrett.)

And, oh, yes, tackling Covid with the urgency, resources, and professionalism we should have been applying all along.

And … help. Help for folks, who through no fault of their own, have been devastated financially.

Better?

This will take — dare I say — money. $1.9 trillion is what President Biden is asking for. And it is what Treasury Secretary Janet Yellen, former chair of the Council of Economic Advisors and the Federal Reserve, believes is necessary to fight Covid, provide relief for the American people, and make the long-term investments that will help grow our economy. It’s kind of the thing Democrats have tended to do in the past 60 years or so.

That’s why, since 1962, GDP growth has been 75 percent higher under Democratic presidents than under Republican presidents — and business-investment growth 126 percent higher, and unemployment 17.5 percent lower. And average weekly earnings have been positive under Democratic presidents and negative under Republicans.

Nine-hundred thousand Americans applied for unemployment benefits last month. What Biden and Yellen are proposing seems to be a much saner use of $1.9 trillion than tax cuts for those at the top that came during a three-year-plus run of job growth inherited from Obama.

Elections have consequences. Biden was elected president. And Democrats control both houses of Congress. Barely. And Mitch McConnell will almost certainly still have the filibuster. And during the Obama administration, he used the filibuster more than it had been used previously in the entire history of the country.

I don’t want to say Mitch is cynical, but the final sticking point of the latest Covid-relief bill was the size of Elaine Chao’s tax cut. That’s how bad it is!

Admittedly, Mitch’s actions on behalf of his caucus and all fiscally responsible Americans will be based on principle. The principle that lower marginal tax rates on the wealthy more than pay for themselves and create prosperity for working folks and the poor. It’s worked for 60 years! Why stop now?

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FOCUS: We Must Stand in Solidarity With the Amazon Workers Organizing for a Union Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=36361"><span class="small">Robert Reich, Robert Reich's Facebook Page</span></a>   
Friday, 05 February 2021 12:37

Reich writes: "Amazon is quietly forcing warehouse workers to sign up for brutal, 10-hour graveyard shifts known as 'megacycles' or risk losing their jobs."

Robert Reich. (photo: Getty)
Robert Reich. (photo: Getty)


We Must Stand in Solidarity With the Amazon Workers Organizing for a Union

By Robert Reich, Robert Reich's Facebook Page

05 February 21

 

mazon is quietly forcing warehouse workers to sign up for brutal, 10-hour graveyard shifts known as “megacycles” or risk losing their jobs. Management at a Chicago warehouse gave workers two weeks’ notice that their warehouse was being shut down, and that workers could either sign up for megacycle shifts that run from 1:20am to 11:50am at a new warehouse or lose their jobs. The Chicago warehouse being shut down is one of the best-organized in the country, and has seen a surge in worker activism during the pandemic that has successfully changed Amazon’s nationwide policies in warehouses.

There is no bottom to Amazon’s cruel anti-worker exploitation. More than half of Amazon’s last-mile delivery network has already been transitioned to the brutal megacycle format. How are parents supposed to work this shift? Workers caring for elderly family members? Workers who rely on public transportation? In addition to being inflexible, the 10 hours of the megacycle shift take a brutal toll on workers and increase the risk for workplace injuries, which is already high in Amazon warehouses. A megacycle worker summed it up: “Jeff Bezos doesn’t just own your time at work; he owns your entire weekend that you’re in bed recovering so you can go back to the warehouse.”

This is why we must stand in solidarity with the Amazon workers organizing for a union in Bessemer, Alabama. Amazon has been busting unions, quashing labor activism, and exploiting workers for far too long. A successful union in Alabama will set the stage for Amazon workers across the country to organize and fight back against Amazon’s exploitation.

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The Washington Post Deserves 324 Billion Pinocchios for Its Attacks on Bernie Sanders Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=55750"><span class="small">David Sirota and Andrew Perez, Jacobin</span></a>   
Friday, 05 February 2021 09:31

Excerpt: "For years now, fact-checking has been wielded by mainstream journalists against Bernie Sanders's left agenda. Case in point: Jeff Bezos's newspaper's recent attacks on Sanders for telling the truth about how the Republican tax cuts benefited the rich like Bezos."

Amazon CEO Jeff Bezos, owner of the Washington Post, in National Harbor, Maryland, 2018. (photo: Getty)
Amazon CEO Jeff Bezos, owner of the Washington Post, in National Harbor, Maryland, 2018. (photo: Getty)


The Washington Post Deserves 324 Billion Pinocchios for Its Attacks on Bernie Sanders

By David Sirota and Andrew Perez, Jacobin

05 February 21


For years now, fact-checking has been wielded by mainstream journalists against Bernie Sanders’s left agenda. Case in point: Jeff Bezos’s newspaper’s recent attacks on Sanders for telling the truth about how the Republican tax cuts benefited the rich like Bezos.

eff Bezos this week announced that he is stepping down from his job running Amazon in order to focus more on his other assets, including the Washington Post. Less than twenty-four hours later, his newspaper’s chief “fact checker” Glenn Kessler published a screed attacking Bezos’s highest-profile political opponent, Sen. Bernie Sanders, for mentioning that Donald Trump’s 2017 tax law benefited rich people and large corporations.

This might seem like a simple example of a pundit knowing exactly who pays his salary, but in this case, the pundit in question has his own axe to grind. Kessler is the scion of a fossil fuel baron, which means he has an interest in defending tax cuts that were a particularly big financial windfall for oil companies, including the one linked to his family, according to Kessler’s own newspaper.

At a time when Americans’ trust in media has plummeted, Kessler is a perfect illustration of how the cottage industry of fact-checking has turned itself into a system of Orwellian misinformation — one that uses fact-o-meters and Pinocchios to insist that war is peace and ignorance is strength.

Rather than clarifying reality, fact-checking is routinely used to hide the truth and shield the powerful from accountability — it has helped politicians hide their votes to cut Social Security; let health care industry lobbyists distort statistics about medical bankruptcies and Medicare for All; and abetted Wall Street’s efforts to downplay bank bailouts.

Now, comes the crescendo: The newspaper owned by a man worth $180 billion is deploying fact-checking to try to revise the entire history of the tax cuts that enriched his retail conglomerate. And what a coincidence — the revision is happening just as the tax policy may be revisited by a new Democratic president.

Not surprisingly, this particular broadside is being directed at Sanders, arguably the most prominent critic of Bezos and Amazon in all of American politics. He introduced legislation to shame the company for its labor practices, he successfully pressured the company to raise its workers’ wages, and has championed legislation to tax billionaires.

Bezos’s company has responded by attacking the Vermont senator — and now his newspaper is trying to reinforce those attacks under the deceptive guise of fact-checking, all as it warns readers on every story that democracy dies in darkness.

324 Billion Pinocchios

At issue is Sanders’s innocuous water-is-wet comment on CNN this week, in which he correctly said “my Republican colleagues voted for almost $2 trillion in tax breaks for the wealthiest people in this country and the largest corporations.”

These aren’t controversial comments at all — and yet Kessler jumped at the chance to award Sanders’s indisputable statement “three Pinocchios” because “the share of the tax cuts for the top 1 percent was not as much as the share they pay in taxes” and because “most people would see an overall reduction in taxes.”

In essence, Sanders was declared a liar because some serfs received a few crumbs, which supposedly proves that most of the loaf didn’t go to the nobility.

Kessler’s entire line of argument deserves about 324 billion Pinocchios — one for each dollar that flowed to the richest fifth of the country in just 2020 alone, according to the Institute on Taxation and Economic Policy. The group’s analysis shows that almost three-quarters of the tax cuts flowed to that cohort.

Those findings echoed data from the Tax Foundation, which noted that “the income group that will see the largest increase in after-tax income in 2018 is the top 1 percent.”

The Tax Policy Center similarly reported that tax cuts boosted the income of the richest households eight times more than they boosted the income of the poorest households. The center projected the lowest quintile of earners, comprising 27 percent of Americans, would see an average tax cut of $60, while the top 0.1 percent of earners would receive an average tax cut of $193,000.

Oh, and within a year of the tax cut bill’s passage, twice as many major corporations were paying a zero effective tax rate — and that included Amazon, the retail giant founded by the Washington Post’s owner.

If those sources don’t adequately underscore Kessler’s mendacity, then just go to the Washington Post’s own reporting when the tax cuts were moving through Congress in 2017. Back then, the newspaper’s journalists accurately reported:

• “Most of the benefits go to the wealthy and large corporations.”

• In a piece headlined “9 Ways Trump’s Tax Plan Is a Gift to the Rich,” the Post reported that “it gives an outright tax cut to the wealthiest Americans and it preserves almost all of the most popular loopholes they use to reduce their tax bills.”

• In a report entitled “The Trump Tax Cuts Would Be the Most Insane Giveaway to the Rich Ever,” the Post reprinted this shocking table and pointed out that by 2027: “The top 1 percent would get 79.7 percent of all the Trump tax cuts at that point. To put that in perspective, the even more rarefied top 0.1 percent, who make an average of a few million dollars a year, would receive almost twice as many dollars worth of tax cuts as the bottom 99 percent would combined.”

Kessler accidentally admitted some of this in his fact-check demonizing Sanders. At one point, he acknowledged that “the biggest beneficiaries of the pass-through deduction were the top 5 percent of individual taxpayers.” But he predicated his Sanders slander on the idea that “any broad-based tax cut is going to mostly benefit the wealthy because they already pay a large share of income taxes.” He added: “In any broad-based tax cut, the wealthy will end up with more money from tax cuts because they already pay a larger share of taxes.”

Those latter points are actually correct — they prove the veracity of Sanders’s assertion by explaining precisely how the Trump tax cuts delivered a disproportionate amount of the tax breaks to the rich. Trump’s bill deliberately slashed marginal tax rates, which then funneled money up the income ladder, just as the Vermont senator said.

The implication from Kessler is that tax reforms can only disproportionately benefit the wealthy — as if regressive marginal rate cuts are the only possible tax policy. Fact-check: false.

Kessler quite obviously likes regressive tax cuts — he approves of legislation that enriches his fellow aristocrats, and look, he has every right to hold that grotesque view. However, just because he likes tax policy that mostly enriches wealthy people, that doesn’t mean a lawmaker is lying when he says that such a tax policy does indeed enrich the affluent.

Kessler is entitled to his own opinions — but he shouldn’t be given a platform to abjectly lie about facts and slander public officials just because he does not like them. And at minimum, if he is given that platform, it shouldn’t be one emblazoned with the “fact-checking” emblem.

“This Is An Important Institution”

This gets to the real issue here — the systemic problem is less the hideous anti-tax zealotry, and more the machine that is constantly laundering such ideology and presenting it as fact.

If a pundit wants to write an op-ed defending regressive reductions in tax rates and criticizing a senator, that’s fine. But something far more sinister happened here.

In this episode, we saw that the newspaper owned by one of the world’s richest men was not publishing an op-ed branded as one pundit’s opinion — instead, the paper knowingly shrouded hard-edged, fact-free, billionaire-defending ideology in the cloak of just-the-facts-ma’am impartiality right on its news pages. And this wasn’t this some one-off — a report last year from Monash University researcher Andrew Moshirnia documented Kessler’s long track record of ever-more-unhinged and inaccurate diatribes.

These dogmatic polemics were all published under the banner of dispassionate fact-checking, as Post editors berate reporters for expressing their opinions and enforce rigid social media guidelines in order to project an air of objectivity.

Couple Kessler’s latest tirade with the Post’s skewed reporting and editorials on the economic debate in Congress, and the decidedly not objective message from Bezos’s megaphone is loud, deliberate, and self-serving: Giving starving people $2,000 (or $1,400) checks gratuitously benefits people who supposedly don’t need money, but handing the richest sliver of the country hundreds of billions of dollars of tax breaks is a pragmatic, common-sense policy that deserves the fact-checker’s coveted seal of approval.

Of course, this doesn’t mean Bezos is calling Kessler (or anyone else) ordering them to write things. But clearly, try-hards like Kessler know who they work for and aim to please the boss — even if everyone in the media industry feigns fainting spells anytime anyone even hints that there might be a connection between a newspaper owner’s agenda and the newspaper’s coverage (remember this fake controversy over Sanders’s obviously true statement?).

In the case of the Post, the link between owner and newsroom is out in the open: Bezos reportedly meets with Post executives, shares business advice with Bob Woodward, and has insinuated that he purchased the newspaper for more than just business reasons.

“I said to myself, ‘If this were a financially upside down salty snack food company, the answer would be no,” he said about buying the paper. “But as soon as I started thinking about it that way, it was like, ‘This is an important institution.’ It is the newspaper in the capital city in the most important country in the world.”

As an instrument of influence in the seat of government, Bezos’s newspaper does not want to be brutally honest with its readers about its devotion to Kessler’s hatred of the Left in general and Sanders in specific. The newspaper does not have the guts or the integrity to just admit it is paying a pundit — not a Joe Friday-esque fact-checker, but a Fox News–style opinionist — to make extremist and highly subjective arguments about who should benefit from public policies.

Being forthright about that might undermine the Post’s brand, and thereby risk influence and credibility. And so instead, Bezos’s newspaper is trying to smuggle the extremism into the discourse and into readers’ minds by stuffing it into the costume of objective “fact-checking.”

That kind of slimy subterfuge is wildly, offensively dishonest — especially because the particular disguise is so powerful.

Today, any news outlet with a legacy brand can slap the phrase “fact-check” on any pundit’s pile of disingenuous horseshit and it will inevitably appear in an attack ad and whip around social media as allegedly ironclad proof that something is true or false. And in the 24 / 7 new cycle’s miasma of disinformation, these nuggets of “fact-checking” are seen as the rare signal in the noise — the last bits of verified truth that can be unquestionably trusted.

But Kessler and his ilk prove that much fact-checking absolutely cannot be relied on. Preying on the public’s understandable desperation for some reliable arbiter of truth, these bad-faith actors have turned the entire “fact-checking” brand into the misinformation era’s single most deceitful weapon of all.

The old saying used to be that there were “lies, damn lies, and statistics” — but in today’s dystopia, there are lies, damn lies, and fact-checking.

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Biden Needs to Combat Zombie Trumpism Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=35861"><span class="small">Bill McKibben, The New Yorker</span></a>   
Thursday, 04 February 2021 13:14

McKibben writes: "The blizzard of federal climate initiatives last week (a blizzard that might help allow actual blizzards to persist into the future) is without precedent."

The Biden Administration's next few weeks may decide the fate of the remote Yaak Valley, on Montana's Canadian border. (photo: Alamy)
The Biden Administration's next few weeks may decide the fate of the remote Yaak Valley, on Montana's Canadian border. (photo: Alamy)


Biden Needs to Combat Zombie Trumpism

By Bill McKibben, The New Yorker

04 February 21

 

he blizzard of federal climate initiatives last week (a blizzard that might help allow actual blizzards to persist into the future) is without precedent. For the first time in the thirty-plus years of our awareness of the climate crisis, Washington roused itself to urgent action; veterans of the cautious Obama Administration—the domestic climate adviser Gina McCarthy and the global climate czar John Kerry chief among them—were suddenly going for broke. In fact, only one branch of the Cabinet seemed conspicuous by its muted presence: the Department of Agriculture, which has responsibility for the nation’s farms and for many of its forests—that is, for the natural features that will either speed or slow the flow of carbon into the atmosphere.

The new (and returning) Secretary of Agriculture, Tom Vilsack, has been regarded among activists as one of Joe Biden’s less inspiring Cabinet choices: a confrère of Big Ag. But who knows—the spirit of possibility in D.C. might be contagious in the best sense of the word. We may see how far it’s spreading in the next few weeks, by watching the fate of the remote Yaak Valley, on Montana’s Canadian border. The Forest Service—an arm, somewhat anomalously, of the Agriculture Department—is about to decide on a timber sale in the Yaak area of the Kootenai National Forest. The Black Ram Project, if approved, would consign a vast swath of old-growth forest and grizzly-bear habitat in the Yaak to clear-cutting, and would run roads through one of the wildest places remaining in the lower forty-eight states. As it happens, I’ve had the chance to hike that wilderness: the writer Rick Bass, who lives in the area and has made it his life’s work to try to keep this region ecologically intact, took me over hill and dale years ago, and I can still remember the squelching, buzzing beauty of the place.

By all accounts, the Forest Service is on the brink of approving the Black Ram Project. It’s a holdover from the Trump years, when the ex-President (for whom a forest is the place your golf ball goes when you slice it) mandated huge increases in timber cuts in national forests. He explained them as necessary to reduce the risk of forest fires. But, as many biologists pointed out, if there’s any worth to such plans, it comes from thinning the smallest trees, not chopping down the old-growth ones that timber companies prize—and which are on the block in the Yaak. Indeed, if you’re interested in averting catastrophic global warming (and the fires that it sparks), one of the easiest, cheapest ways to do it is to leave large old trees standing. That’s why Bass has been calling for a “climate refuge” in the Yaak. He says that we need to “protect the great lungs of our country, the northern tier of inland rainforests, which still offer some hope for sequestering carbon in the old spruce and subalpine fir forests, which can hold 80 percent more carbon in the soil than the drier pine forests.”

In a statement, Randi Spivak, the Public Lands Program director at the Center for Biological Diversity, which is helping fight the proposed clear-cut, described the project as “the last gasp of Trump’s horrifying mismanagement of our national forests and protected wildlife habitat,” adding that “what little old-growth forests remain after decades of clearcutting must be protected. We’ll fight to stop this destruction, and we hope the Biden administration will reverse it.” Like the Line 3 and Dakota Access pipelines, the plan to gut the Yaak would almost certainly not be proposed in today’s political climate. But tomorrow’s actual climate depends on stopping these examples of zombie Trumpism; we’re so close to the climate cataract that we can’t afford to let inertia and interest carry us any farther down the river.

It’s clear that John Kerry has one of the harder jobs on the Biden team, restoring world confidence in America’s willingness to take on the planet’s most difficult challenge—one that we did more than almost any other country to cause. As he labors to get other nations working in harmony, he’ll need as pristine a record as possible back home to underscore his credibility. Cancelling the Black Ram timber sale would make it that much easier to persuade other countries to do the right thing. It would send a deeper message, too. The most important statement that Kerry ever made in his public career came very early. When he was still in his twenties, and a leader of the group Vietnam Veterans Against the War, he said this to a congressional committee: “How do you ask a man to be the last man to die in Vietnam? How do you ask a man to be the last man to die for a mistake?” That’s where we are circa 2021 in the climate fight: we’re acknowledging the stupidity of standard ways of doing business. So we should just stop. Right now, before any more damage is done.

Passing the Mic

Much of the most important work of the climate movement is done by local groups and by local chapters of national groups—they’re the ones who know how to work the state houses and city halls to get legislation passed. One of the most impressive operations in the country is the Chesapeake Climate Action Network (CCAN), where, for almost two decades, Mike Tidwell, the executive director, has helped make the states surrounding the national capital some of the most progressive in the country on climate and energy issues. One of his newest lieutenants is Kim Jemaine, who was born in Pretoria, South Africa, and now lobbies the Virginia legislature. On February 13th, like all CCAN recruits, she’ll join the organization’s annual Polar Bear Plunge fund-raiser. The plunge is usually into the icy Potomac, but this year it’s going “brrr-tual.” (Our conversation has been edited for length.)

How did you get involved in climate-change work?

I started my career working on election campaigns. Climate change was always part of my candidates’ platforms. After some time in the electoral world, I decided I wanted to effect change on a systemic level, through policy development. I have a daughter with ambitious goals, and I want to insure that children like her have a habitable earth and enough time to live out their dreams. I also think that climate impacts highlight systems of injustice at work. Black and brown people bear the burden of poor air quality, exploitative fossil-fuel projects, and the legacies of systems like redlining, which have placed them at higher risk for the deadly impacts of rising temperatures. We often talk about the intersections of injustice, but I’ve started to see them as layers that encumber certain communities. I care deeply about doing what I can to lift some of those layers of injustice.

We’re used to thinking of climate change as a tough issue in the South, but, in Georgia’s recent U.S. Senate races, voters went for Raphael Warnock and Jon Ossoff, who both talked a lot about climate change. Do you think it will be an issue in this year’s Virginia gubernatorial election?

Climate change has become an increasingly relevant issue for voters. Like you said, Warnock and Ossoff both campaigned on it, and we saw Biden run multiple climate-focussed ads. I absolutely think it will be a significant issue in Virginia’s gubernatorial election. Virginians in Hampton Roads are already facing the impacts of recurrent flooding and rising sea levels. Communities like Montgomery and Giles Counties are fighting off unnecessary pipelines that represent the death throes of the fossil-fuel industry. Previously redlined areas in Richmond are being disproportionately affected by dangerously high summer temperatures. The impacts of climate change are not far off. For many Virginians, they are real and they are current. Folks will be looking to gubernatorial candidates for tangible plans to tackle this issue and secure a livable climate for future generations.

Big utility players like Dominion Energy have been a dominant force in Virginia politics. Is that beginning to fade? Describe what the climate-justice movement looks like in your region.

I think Dominion’s influence is fading slowly but surely. Close to fifty state legislators have already sworn off Dominion money, including a number of the gubernatorial candidates. However, certain legislators still gladly accept Dominion contributions and champion its causes. It will be an uphill battle to loosen its grip on Virginia politics. The climate-justice movement in Virginia is, and has been, community-led. Virginians in places like Union Hill and Montgomery County have organized and mobilized to protect their communities and public spaces. They have catalyzed policy to codify and operationalize environmental justice, increase inspection and enforcement of environmental standards for fossil-fuel projects, and protect historically significant spaces for Black and brown communities. While environmental and climate organizations have a hand in policy development and legislative input, the climate-justice victories on the ground have been secured by the people.

Climate School

Robin Kimmerer is one of the wisest ecologists I know. In this essay for Orion Magazine, she reflects on nature and language, asking why plants and animals are always referred to using the pronoun “it.”

Lloyd Austin, the new Secretary of Defense, came out as a climate hawk in one of his earliest pronouncements last week. “The Department of Defense will also support incorporating climate risk analysis into modeling, simulation, wargaming, analysis, and the next National Defense Strategy,” he said. “And by changing how we approach our own carbon footprint, the Department can also be a platform for positive change, spurring the development of climate-friendly technologies at scale.”

Anand Giridharadas used his newsletter, “The.Ink,” for an interview with Varshini Prakash, the executive director of the Sunrise Movement, who served on the climate task force established by Biden and Bernie Sanders after the 2020 Democratic primaries. “Now we are in a full-blown emergency, and we don’t have the luxury of time or of watering down any kind of plans that we have,” Prakash told Giridharadas. “We will constantly have to push Joe Biden at every step of the way to ensure that he doesn’t just meet these goals, but goes beyond them.”

Writing in Atmos, Whitney Bauck provides one of the deepest accounts I’ve read of how Pope Francis’s remarkable encyclical “Laudato Si’ ” is slowly diffusing out through the vast world of Catholicism, and proving particularly powerful in the Amazon. In the words of Patricia Gualinga, a Kichwa leader in Ecuador, “The changes have been felt since the moment the pope chose the name ‘Francis,’ who within the Catholic faith is a saint who loved all creation as a work of God. [Saint Francis] spoke with nature, understood Brother Wind and Sister Rain, and had this connection to communicate with them just like our Indigenous wise men and women. . . . At that moment, without knowing him, I knew there would be good surprises.”

James Gustave Speth is among the most important environmentalists of our time. A founder of the Natural Resources Defense Council, he went on to serve as the chair of Jimmy Carter’s Council on Environmental Quality, the administrator of the United Nations Development Programme, and the dean of Yale’s famous School of the Environment. He’s now co-edited “The New Systems Reader,” a collection of important visions about how we might rethink our economy. (I first heard him lecture about these ideas in a D.C. jail cell, to a group arrested in the first Keystone XL-pipeline protests; the quiet force of his thoughts cut through the din of that barren place.)

Scoreboard

United University Professions, the nation’s largest higher-education union, which represents the faculty and the staff of the State University of New York system, is urging T.I.A.A., the giant asset manager that handles most professorial pensions, to divest from fossil fuel.

Last year, for the first time, renewable energy provided more power to the European Union’s electrical grid than fossil fuel did. Bloomberg reported, “Wind and solar generation increased about 10% compared to 2019. Coal production fell 20%, to about half the level it was five years ago.”

The professional scoreboard keepers at the Washington Post are keeping careful track of how many Trump environmental attacks are being rolled back.

There’s been a big victory in the Netherlands, where a court ruled that a Nigerian subsidiary of Royal Dutch Shell bears responsibility for the oil that spilled from company pipelines across the Niger Delta for decades. Donald Pols, the head of Friends of the Earth in the Netherlands, said, “This is fantastic news for the environment and people living in developing countries,” pointing out that the legal ruling “creates grounds to “take on the multinationals who do them harm.”

Oh, and General Motors has pledged to stop building passenger cars, vans, and S.U.V.s that run on gasoline by 2035.

Warming Up

Here’s the literary voice of the Yaak Valley, Rick Bass, alongside the veteran Montana musician Caroline Keys: words and music from a special place.

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