Still Too Big to Jail.

“‘I think that there is a great sense of frustration and a sense of injustice that the laws have not been enforced in the way most Americans think they should have been,’ said Miller, who wrote the report’s chapter on regulatory enforcement. He notes that 79% of Americans ‘think more bankers and other financial executives should have been criminally prosecuted for their role in the financial crisis.'”

A welcome new report drafted by Americans for Financial Reform and Mike Konczal and championed by Senator Elizabeth Warren makes the much-needed case for further financial reform.“Today, the four biggest banks are 30% larger than they were five years ago. And the five largest banks now hold more than half of the total banking assets in the country.”

At the moment, Hillary Clinton’s 2016 ascendancy to the Democratic nomination, and subsequently the presidency, is looking like a virtual lock. But if Clinton really wants to nip a serious 2016 primary challenge in the bud, she’d start moving to the left on these matters. I’m not holding my breath. (Striking Guy Fawkes Day “Million Mask March” pic above via the OWS Twitter feed.)

The Wisdom of the Elders.

“Does this rollout failure discredit the core goals of a liberal project, including that of a mixed economy, a regulatory state, and social insurance? Conservatives in particular think this website has broad implications for liberalism as a philosophical and political project. I think it does, but for the exact opposite reasons: it highlights the problems inherent in the move to a neoliberal form of a governance and social insurance, while demonstrating the superiorities in the older, New Deal form of liberalism.”

Assessing the failure of the healthcare.gov rollout, Mike Konczal makes the case for returning to the old ways. “[T]he Category B grouping, which we associate with the New Deal and the Great Society…creates a universal floor so that individuals don’t experience basic welfare goods as commodities to buy and sell themselves…My man Franklin Delano Roosevelt may not have known about JavaScript and agile programming, but he knew a few things about the public provisioning of social insurance, and he realized the second category, while conceptually more work for the government, can eliminate a lot of unnecessary administrative problems.”

Of course, Social Security had rollout problems too. And progressives at the time definitely lamented the concessions that were made as Social Security evolved from bill to law, including the exclusion of agricultural and domestic laborers [re: African-Americans] from the law. (Frances Perkins: “The whole thing has been chiseled down to a conservative pattern.”)

That being said, I think it’s important to keep this in mind every time the right starts complaining about byzantine complexities in the Affordable Care Act: We could’ve avoided many of these issues if this change-bringing administration hadn’t immediately ruled out the obvious progressive solution to the health care problem — a single-payer system of Medicare-for-all, like most other advanced industrialized nations enjoy, perhaps phased in with an immediate voluntary buy-in and a gradual lowering of the coverage age.

Instead, we adopted the Republicans’ proposal, the marketplace/exchanges plan originally conceived by the Heritage Foundation and enacted by Mitt Romney, without even including a public option to keep the insurers honest. And what’d we get for this ginormous unforced concession to the right? Nothing. Republicans still didn’t support the health care law in 2010, and they’ve screamed holy hell that it’s tyrannical government socialism for the past three-odd years — even though it was their plan to begin with.

Now, they’re deliberately sabotaging implementation of the ACA and trying to pin every misstep, including this rather sad website #fail, as a failure of the liberal project. As Konczal aptly points out, what’s failing here is the NEO-liberal project — the desire to embrace public-private, technocratic conservative ideas of a generation ago (see also: cap & trade), in the hopes that today’s conservatives will somehow be intellectually honest enough to support them too. That is a sucker’s bet every time.

One other important takeaway from this article: “[I]f all the problems are driven by means-testing, state-level decisions and privatization of social insurance, the fact that the core conservative plan for social insurance is focused like a laser beam on means-testing, block-granting and privatization is a rather large problem. As Ezra Klein notes, ‘Paul Ryan’s health-care plan — and his Medicare plan — would also require the government to run online insurance marketplaces.'”

In other words, here again conservatives are decrying exactly what they ostensibly espouse. Perhaps a better way forward on fundamental pieces of legislation, instead of playing Lucy and the football with the Republicans, is to try to enact our own ideas from now on.

Update: In Foreign Affairs, Kimberly Morgan makes much the same argument: “The real source of Obamacare’s current problems lies in the law’s complexity. A straightforward way to assure coverage would have been to extend an existing, well-worn program to more people…In the United States, [due to] political antipathy to government programs…policymakers regularly rig up complex public-private, and often federal-state, arrangements that are opaque to the public, difficult to administer, and inefficient in their operation.”

Party Like It’s 1928.

“Most of the coverage has focused on the rate of change for incomes of the top 1 percent, particularly the fact that the top 1 percent have enjoyed 95 percent of all income growth from 2009 to 2012. But I want to focus on levels. I’m going to modify one of Saez’s charts to show something I don’t think has been pointed out.”

Per Mike Konczal of Rortybomb, writing over at Next New Deal: In 2012, the Top 1% (notwithstanding capital gains, which only slightly changes the picture) took home the largest share of the national income since 1928. Socialism!

For Want of a Spreadsheet Check…

“This error is needed to get the results they published, and it would go a long way to explaining why it has been impossible for others to replicate these results. If this error turns out to be an actual mistake Reinhart-Rogoff made, well, all I can hope is that future historians note that one of the core empirical points providing the intellectual foundation for the global move to austerity in the early 2010s was based on someone accidentally not updating a row formula in Excel.”

As Mike Konczal of Rortybomb explains, the Reinhart-Rogoff paper “Growth in a Time of Debt,” which argued that high debt-to-GDP ratios stymie growth and has been one of the key economic foundations for recent deficit hysteria, turns out to be fundamentally flawed.

“This has been one of the most cited stats in the public debate during the Great Recession,” embraced by both Paul Ryan and the Washington Post. And it’s totally upside down. As Konczal says, “[t]he past guides us…it tells us that a larger deficit right now would help us greatly.”

Update: Dean Baker weighs in. “If facts mattered in economic policy debates, this should be the cause for a major reassessment of the deficit reduction policies being pursued in the United States and elsewhere. It should also cause reporters to be a bit slower to accept such sweeping claims at face value.”

The Fed, Unreserved.

“Fed action this week was also primed by the Jackson Hole conference from a few weeks ago. There, two important papers and a statement by Ben Bernanke set the tone of the future of monetary debate during the Great Recession. Let’s examine them in animated gif format.” The estimable Mike Konczal of Rortybomb explains current monetary policy through animated gifs.