Where does the GOP’s commitment to free market fundamentalism reach its limit? Where there’s money to be made, of course. The Post looks into the rise of no-bid contracts under Dubya. “A recent congressional report estimated that federal spending on contracts awarded without ‘full and open’ competition has tripled, to $207 billion, since 2000, with a $60 billion increase last year alone.”
Category: Political Economy
Minimum Overdrive.
Following up on one of the first orders of business of the “100 Hours,” the Senate passes a minimum-wage increase 94-3 for the first time in almost a decade…but not before burdening the House bill with sundry small-business tax breaks to appease the GOP. “House leaders have demanded that the tax measures be stripped from the bill…Rep. Charles B. Rangel (D-N.Y.), chairman of the tax-writing House Ways and Means Committee, said he may have other plans for the $8.3 billion that the Senate would use for business tax breaks.”
Scattered without the Eye.
“‘Times have changed. I don’t want to be someone who they say is too stubborn to change too,’ said Rep. Rodney Alexander (R-La.), whose 92 percent conservative rating did not stop him from voting with Democrats on the homeland security and minimum-wage bills.” The delightful success of the 100 Hours thus far deserves its own post, one which I hope to get to before that time elapses. But, in the meantime, I must say, it’s nice to watch the House GOP finally crack into pieces, and to discover that many rank-and-file Republicans seemed more than eager to break from the right-wing extremism of Boss DeLay’s leadership. Come on board, you won’t hurt the horse!
A Taste of Their Own Medicine.
As they prepare to take back the House for the first time in twelve years, the Dems look to freeze out any GOP involvement in legislation, at least for the first few weeks. “House Democrats intend to pass a raft of popular measures as part of their well-publicized plan for the first 100 hours. They include tightening ethics rules for lawmakers, raising the minimum wage, allowing more research on stem cells and cutting interest rates on student loans.”
The Free Market Principal.
“As George Shultz liked to say: ‘Everybody loves to argue with Milton, particularly when he isn’t there.'” Milton Friedman, 1912-2006.
Taking Initiatives.
Regarding ballot initiatives, it was a bad night for same-sex marriage and marijuana decriminalization. Still, there’s cause for hope around the country in the six state minimum-wage hikes that passed, as well as the repudiation of the stringent abortion law in South Dakota (Justice Kennedy: take note.) Speaking of the Court, its eminent domain decision of last year took a beating in nine states, although California, Idaho, and Washington thankfully repudiated stronger measures that would effectively hobble any kind of federal land regulation.
The Republicans’ Wage War.
“[W]ages and salaries now make up the lowest share of the nation’s gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960’s.” An examination of the economy by the NYT reveals the bitter fruit of Dubyanomics for 90% of the nation: “At the very top of the income spectrum, many workers have continued to receive raises that outpace inflation, and the gains have been large enough to keep average income and consumer spending rising…[but e]ven for workers at the 90th percentile of earners — making about $80,000 a year — inflation has outpaced their pay increases over the last three years, according to the Labor Department.“
Inconvenient Truths | Convenient Gaming
And, while I’m snarfing links from other blogs, two choice entries from PlasticBag: (1) A rather lame “amateur” anti-Gore YouTube video turns out to be the work of GOP agit-prop artists, likely at the behest of Exxon; and (2) to keep up with the times, everyone’s favorite real estate robber baron simulation, Monopoly, is forsaking the multicolored cash for debit cards. “It is inserted into an electronic machine where the banker taps in cardholders’ earnings and payments.“
Estate of Confusion.
Pathetic…these guys really have no shame. In yet another desperate and disgusting bid to pamper the rich by stealing from the poor, Catkiller Frist and the Senate GOP try to game the Senate Dems into backing a repeal of the estate tax by coupling it with a long-overdue minimum wage hike. To put this ploy in perspective, a recent report “concluded that the estate tax reduction would cut government income by $753 billion in the first 10 years, forcing lower spending for Medicaid, food stamps and unemployment insurance, which help low-wage workers.” Update: Thankfully, the bill failed on a 56-42 cloture vote, three shorts shy of the necessary 60 (Catkiller switched his vote to enable reconsideration later.)
And, in quite related news, new Treasury Secretary Henry Paulson admits the Dubya economy has been leaving people behind: “‘Many aren’t seeing significant increases in their take-home pay. Their increases in wages are being eaten up by high energy prices and rising health care costs, among others.’“
The Sheltering Sky.
“‘The universe of offshore tax cheating has become so large that no one, not even the United States government, could go after all of it.” A new Senate report delves into offshore tax shelter schemes by extremely wealthy individuals, ones which cost the American public billions in federal tax revenues (and which often utilized fronts based in the Isle of Man, once the long-time home of my now-deceased English grandparents.) “‘We need to significantly strengthen the aiding and abetting statutes to get at the lawyers and accountants and other advisers who enable this cheating,’ Senator Levin said, adding that ‘we need major changes in law to stop the use of tax havens’ by tax cheats.”