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Rational Irrationality

Obamacare Supreme Court Case is a Bad Joke

Forgive me if a wry tone eludes me when it comes to today’s proceedings in the Supreme Court. As far as I am concerned the whole thing is absurd—yet another example of how America’s antiquated system of government, and its determined refusal to accept the economic realities of the modern world, is undermining its future.

Early on in this morning’s session, Justice Anthony Kennedy, the swing vote on the court, said that the U. S. government had a “very heavy burden of justification” to show that an individual mandate to purchase health-care insurance was constitutional. Really? Only if Kennedy and his Republican-appointed colleagues are willing to throw out economic logic as well as seventy years of legal precedent, which, judging by their harsh questioning of Solicitor General Donald Verrilli, Jr., they may well be.

The economics isn’t very complicated. The health-care industry, which makes up about a sixth of the economy, is rife with inefficiency, waste, and coverage gaps. In seeking to remedy some of these problems, the Obama Administration made a deal with the private-insurance industry—the same deal Mitt Romney made when he was governor of Massachusetts. On the one hand, the federal government barred the insurers from discriminating against the sick and the elderly, thereby raising the industry’s costs.

On the other hand, the feds obliged uninsured individuals to purchase coverage, thereby expanding the insurers’ revenues. We can argue whether this was the best way to proceed. (At the time the bill was passed, I raised some doubts about how much it would cost.) But it was a straightforward instance of the central government seeking to redress the failures of the private market—something akin to imposing fuel standards on auto manufacturers, providing state pensions, and forcing banks to hold adequate capital reserves.

In a modern, interconnected economy, activist government policies to remedy market failures are essential. Rather than confronting this argument head-on, which would involve publicly defending the actions of the banks, the insurers, and the industrial polluters, the right has settled on a strategy of trying to undermine the government through the courts, where its pro-corporate agenda can be repackaged as a defense of ancient freedoms.

But, of course, this case isn’t ultimately about the law—it is about politics. The four ultra-conservative justices on the court—Alito, Roberts, Scalia, and Thomas—are in the vanguard of a movement to roll back the federal government and undermine its authority to tackle market failures. The movement began in the nineteen-eighties, when the Federalist Society got its start and Ronald Reagan appointed one of its members, Scalia, to the court—and for thirty years it has been gathering strength.

Thus the creation of a new legal theory to sink Obamacare: the idea that while the federal government might well have the authority to regulate economic activity, it doesn’t have the right to regulate inactivity—such as sitting around and refusing to buy health insurance. Now, it is as plain as the spectacles on Antonin Scalia’s nose that opting out of the health-care market is about as realistic as opting out of dying. But necessity is the mother of invention. And, judging by his questions this morning, it is this invention that Kennedy has fastened on.

As I said at the beginning, it’s a bad joke—upon us all.

 

Obama Signs Act Allowing Indefinite Detention of U.S. Citizens

In his last official act of business in 2011, President Barack Obama signed the National Defense Authorization Act from his vacation rental in Kailua, Hawaii. In a statement, the president said he did so with reservations about key provisions in the law — including a controversial component that would allow the military to indefinitely detain terror suspects, including American citizens arrested in the United States, without charge.

The legislation has drawn severe criticism from civil liberties groups, many Democrats, along with Republican presidential candidate Ron Paul, who called it “a slip into tyranny.” Recently two retired four-star Marine generals called on the president to veto the bill in a New York Times op-ed, deeming it “misguided and unnecessary.”

“Due process would be a thing of the past,” wrote Gens Charles C. Krulak and Joseph P. Hoar. “Current law empowers the military to detain people caught on the battlefield, but this provision would expand the battlefield to include the United States – and hand Osama bin Laden an unearned victory long after his well-earned demise.”

Paradox of the New Elite

IT’S a puzzle: one dispossessed group after another — blacks, women, Hispanics and gays — has been gradually accepted in the United States, granted equal rights and brought into the mainstream.

At the same time, in economic terms, the United States has gone from being a comparatively egalitarian society to one of the most unequal democracies in the world.

The two shifts are each huge and hugely important: one shows a steady march toward democratic inclusion, the other toward a tolerance of economic stratification that would have been unthinkable a generation ago.

Other nations seem to face the same challenge: either inclusive, or economically just. Europe has maintained much more economic equality but is struggling greatly with inclusiveness and discrimination, and is far less open to minorities than is the United States.

European countries have done a better job of protecting workers’ salaries and rights but have been reluctant to extend the benefits of their generous welfare state to new immigrants who look and act differently from them. Could America’s lost enthusiasm for income redistribution and progressive taxation be in part a reaction to sharing resources with traditionally excluded groups?

“I do think there is a trade-off between inclusion and equality,” said Gary Becker, a professor of economics at the University of Chicago and a Nobel laureate. “I think if you are a German worker you are better off than your American equivalent, but if you are an immigrant, you are better off in the U.S.”

In the United States, the stratification of wealth followed several decades where economic equality was strong. The stock market crash of 1929 and the Great Depression that followed underscored the excesses of the roaring ’20s and ushered in an era in which the political climate favored labor unions, progressive taxation and social programs aimed at reducing poverty.

From the 1930s to the 1960s, the income of the less affluent Americans grew more quickly than that of their wealthier neighbors, and the richest 1 percent saw its share of the national income shrink to 8.9 percent in the mid-1970s, from 23.9 percent in 1928. That share is now back up to more than 20 percent, its level before the Depression.

Inequality has traditionally been acceptable to Americans if accompanied by mobility. But most recent studies of economic mobility indicate that it is getting even harder for people to jump from one economic class to another in the United States, harder to join the elite. While Americans are used to considering equal opportunity and equality of condition as separate issues, they may need to reconsider.

In an era in which money translates into political power, there is a growing feeling, on both left and right, that special interests have their way in Washington. There is growing anger, from the Tea Party to Occupy Wall Street, that the current system is stacked against ordinary citizens. Suddenly, as in the 1930s, the issue of economic equality is back in play.

Occupy Wall St. Movement Most Important Thing in the World

We have picked a fight with the most powerful economic and political forces on the planet. That’s frightening. And as this movement grows from strength to strength, it will get more frightening. Always be aware that there will be a temptation to shift to smaller targets—like, say, the person sitting next to you at this meeting. After all, that is a battle that’s easier to win.

Don’t give in to the temptation. I’m not saying don’t call each other on shit. But this time, let’s treat each other as if we plan to work side by side in struggle for many, many years to come. Because the task before will demand nothing less.

A Conflict Without End

Osama bin Laden had been dead only a few days when House Republicans began their efforts to expand, rather than contract, the war on terror. Not content with the president’s wide-ranging powers to pursue the arch criminals of Sept. 11, 2001, Republicans want to authorize the military to pursue virtually anyone suspected of terrorism, anywhere on earth, from now to the end of time.

This wildly expansive authorization would, in essence, make the war on terror a permanent and limitless aspect of life on earth, along with its huge potential for abuse.

A new bill, approved last week by the House Armed Services Committee and heading for the floor this month, would go much further. It would allow military attacks against not just Al Qaeda and the Taliban but also any “associated forces that are engaged in hostilities against the United States.” That deliberately vague phrase could include anyone who doesn’t like America, even if they are not connected in any way with the 2001 attacks.  It could even apply to domestic threats.

It allows the president to detain “belligerents” until the “termination of hostilities,” presumably at a camp like the one in Guantánamo Bay, Cuba. Since it does not give a plausible scenario of how those hostilities could be considered over, it raises the possibility of endless detention for anyone who gets on the wrong side of a future administration.

Wisconsin Union Bill Passes State Assembly

MADISON, Wis. — Wisconsin lawmakers voted Thursday to strip nearly all collective bargaining rights from the state’s public workers, ending a heated standoff over labor rights and delivering a key victory to Republicans who have targeted unions in efforts to slash government spending nationwide.

The state’s Assembly passed Gov. Scott Walker’s explosive proposal 53-42 without any Democratic support and four no votes from the GOP. Protesters in the gallery erupted into screams of “Shame! Shame! Shame!” as Republican lawmakers filed out of the chamber and into the speaker’s office.

The state’s Senate used a procedural move to bypass missing Democrats and move the measure forward Wednesday night, meaning the plan that delivers one of the strongest blows to union power in years now requires only Walker’s signature to take effect.

He says he’ll sign the measure as quickly as possible, which could be as early as Thursday.

Walker’s plan has touched off a national debate over labor rights for public employees and its implementation would be a key victory for Republicans, many of whom have targeted unions amid efforts to slash government spending. Similar bargaining restrictions are making their way through Ohio’s Legislature and several other states are debating measures to curb union rights in smaller doses.

In Wisconsin, the proposal has drawn tens of thousands of protesters to the state Capitol for weeks of demonstrations and led 14 Senate Democrats to flee to Illinois to prevent that chamber from having enough members present to pass a plan containing spending provisions.

But a special committee of lawmakers from the Senate and Assembly voted Wednesday to take all spending measures out of the legislation and the full Senate approved it minutes later, setting up Thursday’s vote in the Assembly.

The measure forbids most government workers from collectively bargaining for wage increases beyond the rate of inflation unless approved by referendum. It also requires public workers to pay more toward their pensions and double their health insurance contribution, a combination equivalent to an 8 percent pay cut for the average worker.