Progress Report: Greenspan's False Choice

[Guest guest]

> Tue, 31 Aug 2004 08:29:34 -0700

> Progress Report: Greenspan's False Choice

> " American Progress Action Fund "

> <progress

>

 

 

 

#160;#160;DON'T MISS

DAILY TALKING POINTS: No 'Compassionate Conservatism'

in NYC

 

IRAQ: CPA Senior Advisor Larry Diamond examines what

went wrong in Iraq.

 

IRAQ: The LA Times reports that attacks on U.S. forces

in Iraq have increased since the transfer of

sovereignty.

 

CORPORATE: The Wall Street Journal reports a giant

tobacco subsidy windfall is lining the pockets of

" millionaires, country clubs and city dwellers far

removed from leaf, field or barn. "

 

 

DAILY GRILL

" One of the interesting things people ask me, now that

we're asking questions, is, can you ever win the war

on terror? Of course, you can. "

 

- President Bush, 4/13/04

 

VERSUS

 

" I don't think you can win [the war on terror]. "

 

- President Bush, 8/31/04

 

 

DAILY OUTRAGE

The Bush administration is leading an increasingly

aggressive push to " open up broad areas of largely

unspoiled federal land to oil and gas exploration " in

the West. Targeted for sacrifice are " a number of

places prized for their scenery, abundant wildlife and

clean water, natural assets increasingly valuable to

the region's changing economy. "

 

 

ARCHIVES

Progress Report

 

 

OPPORTUNITY

The Center for American Progress is now accepting

intern applications for the fall semester.

 

by David Sirota, Christy Harvey, Judd Legum and

Jonathan Baskin

AUGUST 31, 2004

 

ECONOMY Greenspan's False Choice

CONVENTION The Best Party Money Can Buy

OLYMPICS Bush Ads Could Cost N.Y. in 2012

UNDER THE RADAR Go Beyond The Headlines

 

Sign up | Send tip | Permalinks | Mobile | Print

 

ECONOMY

Greenspan's False Choice

 

Last Friday, Federal Reserve Chairman Alan Greenspan

repeated his call to slash Social Security benefits

and raise the retirement age on America's seniors. He

also proposed reigning in Medicare benefits. Greenspan

claims such action must be taken immediately to avoid

unmanageable budget deficits. But he presented a false

choice between raising payroll taxes on workers and

reducing benefits. What Greenspan didn't mention is

his support for extending President Bush's tax cuts

for the wealthy indefinitely #8211; at a cost of $1.5

trillion over 10 years. This, despite evidence in the

president's own budget analysis that his tax cuts are

largely responsible for projected federal budget

deficits. According to the Center for Budget and

Policy Priorities, the impact of the president's tax

cuts on the deficits is three times the impact of the

projected Social Security shortfall.

 

THE GREENSPAN TAX CUT FLIP-FLOP: Greenspan said in

February that we shouldn't roll back tax cuts because

doing so would " pose significant risks to...the

revenue base " by slowing economic growth. But

Greenspan advocated those tax cuts in January 2001

because he believed they were necessary to reduce

federal revenues. The Washington Post reported on

1/27/01 that Greenspan " justified his support of tax

cuts by focusing on a problem that may not even emerge

until the end of a possible second Bush term #8211;

the government being forced to buy private assets

because it had paid off all the national debt and

still had buckets of cash in return. "

 

THE GREENSPAN BAIT-AND-SWITCH: In 1983, as chairman of

the bipartisan Social Security commission, Greenspan

said that the way to ensure that Social Security

remains on sound financial footing in the future is to

make baby boomers pay their benefits in advance. That

is why, to this day, people pay more in Social

Security taxes than is paid to beneficiaries #8211; 50

percent more in 2004. But, in large part to make up

the shortfall caused by the Bush tax cuts for the

wealthy, this money (more than $1.8 trillion) has been

used to finance other aspects of government. In other

words, Social Security has been transformed from a

retirement program to a regressive income

redistribution program. Lower- and middle-class

workers are not paying for their retirement benefits

in advance, they are paying for tax cuts for those

making more than $300,000. For more, read this

American Progress column by Harry J. Holzer.

 

SOCIAL SECURITY IS NOT IN CRISIS: According to a

recent report by the Congressional Budget Office, over

the next 75 years, the Social Security shortfall is

projected to be 1 percent of all taxable income. Even

at current levels, Social Security will be able to pay

full benefits until 2052.

 

A MODEST PROMISE: Greenspan said on Friday that " we

have promised more than our economy has the ability to

deliver. " On Salon.com, James K. Galbraith points out

that our promises are quite modest: " Social Security

offers a life of modest comfort to most #8211; not all

#8211; elderly Americans, as well as a system of

support for survivors and the disabled. Medicare

offers the elderly access to decent medical care. That

is all. " Galbraith notes, " We are a rich country, and

we can certainly find the food, the modest housing,

the clothing and the doctors, nurses, and health aides

required to keep our elderly out of poverty in the

years ahead. "

 

CONVENTION

The Best Party Money Can Buy

 

Another political convention, another excuse to bathe

public officials in campaign cash from the very

corporate special interests they are supposed to

regulate. As AP reports, " It's party time for trade

associations, companies and interest groups at the GOP

convention in New York, and each is trying to outdo

the next in gimmicks to lure movers and shakers. " The

New York Times notes, " the convention delegates and

their guests will be celebrated and pampered all week

at lavish events sponsored by corporations and

business leaders. " In an op-ed for Newsday, Public

Campaign's Micah Sifry and Nancy Watzman ask, " Who is

left out of this? Ordinary voters. In a pay-to-play

political system, votes don't matter nearly so much as

cold, hard cash. " The phenomenon is exemplified by the

make-up of the delegates themselves. According to the

LA Times, " Republican fundraisers are being rewarded

with coveted slots in state delegations. " Roughly one

out of every five of Bush's top fundraisers #8212;

individuals who have raised $100,000 or more #8212; is

a delegate here, squeezing out spots for ordinary

grassroots activists.

 

ARNOLD TRIP PAID FOR BY DRUG INDUSTRY LOOKING FOR A

VETO: Corporations are ponying up about $350,000 to

finance Gov. Arnold Schwarzenegger's ® trip to the

convention, including a lavish party at Planet

Hollywood (taxpayers will be footing the bill for his

security). Many of the contributions come from large

pharmaceutical companies like Pfizer who are actively

lobbying the governor to veto four bills passed by the

state legislature " designed to help Californians buy

cheaper prescription drugs from Canada. "

 

ENERGY INDUSTRY THANKS GOP FOR ENERGY TAX BREAKS: The

energy industry has a major presence at the

convention. As AP reports, " the dozens of

special-interest parties include a trapshooting

tournament and 'Wild West' bash sponsored by the

American Gas Association (AGA). " The NYT notes AGA

" estimates that the nine affairs it is involved in

this week and the six it held at the Democratic

convention in Boston last month cost $700,000. " #160;

Meanwhile, " the American Petroleum Institute and oil

industry companies are honoring Sen. Pete V. Domenici

(R-NM), chairman of the Energy Committee. " It is all

part of the energy industry's broader strategy to

reward the Republican Party for its support for more

energy industry tax breaks and weaker environmental

regulations. As the Dallas Morning News reports, " over

the last four years, the electric power industry has

contributed heavily to Mr. Bush and benefited from

business-friendly policies that environmentalists say

have weakened air quality while saving companies

billions of dollars. "

 

WALL STREET THANKS GOP FOR LAX OVERSIGHT: The

Washington Post reports the convention " is being

bankrolled and feted to an extraordinary degree by the

financial services behemoths...Hardly a meal or

cocktail hour will pass that won't find a securities

firm or a venture capitalist hosting members of

Congress, key committee staffers, Republican Party

officials who control the investment of state pension

funds. " President Bush now lists the financial

services industry among his top contributors. It is

all payback for the administration's willingness to

water down serious corporate reform in the wake of the

Enron scandal, and its strong support of anti-consumer

bankruptcy legislation that gives even more power to

credit card companies. However, at least one of the

industry's key GOP point men may be in hot water over

this kind of aggressive fundraising. Rep. Michael

Oxley (R-OH), chairman of the House Financial Services

Committee, " was the guest of honor at 19 of 45 events "

and is now under scrutiny by the FBI for election law

violations.

 

AGRICULTURE INDUSTRY THANKS GOP CHAIRMAN: Though Rep.

Henry Bonilla (R-TX) represents one of the poorest

districts in America, he is living it up like royalty

this week. According to USA Today, Bonilla is the

guest of honor at a party where attendees are urged to

" indulge yourself " and wear the " most exclusive and

prestigious jewels in the world " at the Cartier

Mansion in Manhattan. Bonilla, who chairs the House

Agriculture Appropriations Subcommittee, is being

feted by a group of Washington lobbyists who represent

interests before his committee. Among the hosts for

Bonilla's bash are the Wine Institute, which

represents California vintners; Christine Pellerin, a

former Bonilla aide who lobbies on appropriations

matters; and UST, whose tobacco and wine interests

fall under the jurisdiction of Bonilla's agriculture

subcommittee.

 

MEDIA BARRED FROM CORPORATE EVENT AT NYSE: The Houston

Chronicle reports that " Texas Republican delegates

opened their trip to the national convention Sunday

with a closed-door party at the New York Stock

Exchange, an event financed by companies that deal

with tobacco, petrochemicals, electric utilities and

professional wrestling. " It was the first of several

delegation events " that will be held out of public

sight, away from the prying eyes of news reporters and

television cameras. " The Chronicle notes, " the news

blackout contrasts with previous Republican and

Democratic conventions when receptions and fetes, many

sponsored by corporate interests, were open to the

press. "

 

OLYMPICS

Bush Ads Could Cost N.Y. in 2012

 

The Bush campaign's use of the Olympics in

advertisements for the president may have cost New

York City, now hosting the Republican convention, a

shot at hosting the Summer Olympics in 2012. The Bush

ad, touting the inclusion of " two more free nations, "

Afghanistan and Iraq, in this year's Olympics, has

reportedly outraged Olympic officials and prejudiced

them against the Big Apple. An International Olympic

Committee (IOC) official quoted in the German

Newspaper Der Spiegel said, " The chances of New York

City to host the games were already not very good. Now

they have dropped to near zero. " Last week after

Iraq's soccer team advanced to the quarterfinals,

Iraqi midfielder Salih Sadir voiced his own feelings

on the ads: " Iraq as a team does not want Mr. Bush to

use us for the presidential campaign, " Sadir

told#160;Sports Illustrated. " He can find another way

to advertise himself. " Olympic gold medalist Carl

Lewis has also spoken out against the ads, saying, " Of

course, we've invaded Iraq and are in there and are

using it for political gain. It bewilders me, and I

understand why the Iraqi players are offended. "

 

Under the Radar

 

ELECTION #8211; THE CONSEQUENCES OF MUD-SLINGING:

Florida Senate hopeful Mel Martinez's dirty campaign

tactics are coming home to roost. In a highly unusual

move, the St. Petersburg Times yesterday rescinded its

endorsement of former U.S. Housing Secretary Mel

Martinez in today's U.S. Senate primary in Florida. In

a strongly worded editorial, the paper charged that

while it had previously endorsed Martinez, that was

before the candidate " took his campaign into the

gutter with hateful and dishonest attacks on his

strongest opponent, former U.S. Rep. Bill McCollum.

The Times is not willing to be associated with

bigotry. " The paper further stated, " No matter what

else Martinez may accomplish in public life, his

reputation will be forever tainted by his campaign's

nasty and ludicrous slurs of McCollum in the final

days of this race. "

 

SCIENCE #8211; THE SCIENCE OF SAFETY SLAMMED: The Bush

administration has leveled yet another blow to sound

science. The latest attack revolves around the

National Institute for Occupational Safety and Health

(NIOSH), a branch of the Centers for Disease Control

which is responsible for conducting research on

workplace illnesses, injuries and deaths. NIOSH,

reports the Washington Post, has " long nurtured a

reputation for independence, rigor and scientific

credibility, according to both labor and business

interests. " That's all about to change. The Bush

administration is reorganizing the CDC to downgrade

the branch, in effect removing NIOSH's independence

and threatening its ability to compile scientific data

outside of party politics. The plan has " drawn

protests from virtually every occupational health and

safety organization in the country. " Four former NIOSH

directors #8211; from both Republican and Democratic

administrations #8211; #160;expressed their serious

opposition to the move in a letter to Health and Human

Services Secretary Tommy Thompson: " To downgrade NIOSH

and blur its mission by combining key functions with

other CDC programs will erode its independence and

visibility and weaken the scientific contribution that

has long benefited American workers and employers. "

 

ECONOMY #8211; CEOS SHIP OUT JOBS, RAKE IN DOUGH:

According to a study on executive compensation being

released today, " Chief executives of U.S. companies

that outsourced the greatest number of jobs reaped

bigger pay and benefits last year. " The U.S. Institute

for Policy Studies and the non-partisan United for a

Fair Economy found in their study of executive

salaries that CEOs of the leading outsourcing

companies earned $10.4 million last year, 28 percent

more than the $8.1 million average CEO compensation.

Paychecks of CEOs at 50 U.S. firms outsourcing the

most service jobs jumped by an average of 46 percent,

compared to just a 9 percent average raise among CEOs

at the 365 big companies overall. The study calculated

that the " U.S. minimum wage would be $15.76 an hour,

instead of the current $5.15 an hour if workers' wages

had gone up as much as CEO pay has since 1990. " Check

out American Progress's graphic illustration of our

" upside-down economy. "

 

ELECTION #8211; THE $40 MILLION CONNECTION: The nasty

accusations hurled by the group Swift Boat Veterans

for Truth to try to discredit Democratic presidential

nominee John F. Kerry's record in Vietnam were

seconded last week by retired naval Rear Adm. William

Schachte. (Keep in mind this is the same Rear Adm.

Schachte who " did not challenge Kerry's Purple Heart

while describing the incident in an interview last

year. " ) Who is William Schachte? As the Washington

Post reports, it turns out he's " a lobbyist whose

client FastShip Inc. recently #160;won a $40 million

grant from the federal government. " In addition,

Schachte " gave $1,000 to Bush's 2000 and 2004

campaigns. "

 

HEALTH CARE #8211; THE SPEECH DISCOUNT: The New York

Post's Page Six reports, " When President Bush delivers

his acceptance speech at the RNC Thursday, he'll be

inadvertently helping American customers of a Canadian

online drugstore. " According to the paper, " people who

place orders with Universaldrugstore.com during the

president's address will get an additional 25 percent

discount on the Canadian pharmacy's already bargain

rates. " And for every order placed, the group will

donate a meal to Meals on Wheels. The pharmacy's

owner, Jeff Uhl, states, " We feel it is highly unfair

for Americans, especially seniors, to have to choose

between meals and meds, and we hope our program will

help as many people as possible to no longer have to

suffer this choice. "