Tag Archives: U.S. politics

how about a war tax?

Part of the reason the U.S. public accepts continuous war as normal is that we don’t realize how much we are paying for it. The idea of a war tax sounds politically crazy, but is is? It used to be pretty standard. Congress would declare war, ordinary people would be drafted and taxed, and people would generally be supportive but expect the war to end and things to go back to the way they were.

Until the Vietnam War, American presidents regularly introduced war taxes, seemingly less worried about offending the people than about financing the war. In some cases, the government had to work to elicit fiscal sacrifice, for example, with a pro-tax Disney cartoon in 1943 that touted “Taxes to Beat the Axis” during World War II. In most cases, the taxes did not actually offend the people…

In 2009, during debates about the Afghanistan surge, House Appropriations Committee Chair David Obey proposed a tax that would require homes with incomes between $30,000 and $150,000 to pay 1 percent on top of their existing taxes, and higher levels for the wealthier. Veterans of both Iraq and Afghanistan would be exempt: “We’re just trying to keep in the forefront what the financial costs are.”

Indeed, a study of the costs of these wars showed that the public is blissfully disconnected. In 2014, I surveyed 350 Americans and asked them to estimate the costs of the Afghanistan war to that point. Responses ranged from a million dollars to “probably $10 trillion. A lot more than we can afford.” The typical response was “I have no idea — $100 million?” The real answer at that point was $686 billion. Americans cannot make sense of such enormous figures. They can, however, make sense of their own budgets, which is why the connection with taxes is so much tighter, and why individuals become invested in the conduct of the war when war taxes are levied. As both Tilly and Smith observed, the visibility and intrusiveness of taxes are exactly what make individuals scrutinize the service for which the resources are being used. In the case of war, it means paying more scrupulous attention to its duration, goals, and cost.

running out of bombs?

The military-industrial complex needs to engage in continuous war so it can be ready in case a war starts. Or so I interpret the logic. Is this part of some vast, hidden conspiracy? Well, no, apparently they put a report out about it periodically.

The Pentagon plans to invest more than $20 billion in munitions in its next budget. But whether the industrial base will be there to support such massive buys in the future is up in the air — at a time when America is expending munitions at increasingly intense rates.

The annual Industrial Capabilities report, put out by the Pentagon’s Office of Manufacturing and Industrial Base Policy, has concluded that the industrial base of the munitions sector is particularly strained, something the report blames on the start-and-stop nature of munitions procurement over the last 20 years, as well as the lack of new designs being internally developed…

All this is happening as the U.S. is expending munitions at a rapid rate. For instance, the Special Inspector General for Afghanistan Reconstruction concluded that 1,186 munitions were dropped in that country during the first quarter of 2018 ― the highest number recorded for the first three months of the year since tracking began in 2013; that number is also more than two and a half times the amount dropped in the first quarter of 2017.

Interesting, and I thought the Afghanistan war was more or less over. It seems like wars don’t really end any more, and the public now accepts ongoing regional wars as normal.

@RealObamaCareForecast

The Congressional Budget Office has a new forecast of the fate of Obama care over the next 10 years. And the verdict is…the system is not in a death spiral. Premiums are forecast to rise faster than inflation, which is bad, and the number of people without insurance is forecast to rise slightly, which is bad unless you believe for some reason that these people are not entitled to the same human rights you are entitled to, for whatever reason, but that system is “stable”, i.e. not in a “death spiral”

The paragraph below caught my eye for a couple reasons. First, Obama care is only 10% of all government health care expenditures. Medicare is also only about 10%, which is amazing and I suspect almost everyone has the wrong idea about that. Medicaid and the Children’s Health Insurance Program are a whopping 40%.  Subsidies for corporate health insurance are the remaining 40%.

Net federal subsidies for insured people in 2018 will total $685 billion.
That amount is projected to reach $1.2 trillion in 2028. Medicaid and the
Children’s Health Insurance Program account for about 40 percent of that
total, as do subsidies in the form of tax benefits for work-related insurance.
Medicare accounts for about 10 percent, as do subsidies for coverage
obtained through the marketplaces established by the Affordable Care Act
or through the Basic Health Program.

So what surprises me is that we are covering the elderly pretty thoroughly and pretty cost-effectively, while coverage for the poor seems to be both inadequate and extremely cost inefficient. And certainly, the system of hidden tax subsidies for corporate workers is grossly inefficient. So why does the public put up with all this? First, old people love to complain but at the end of the day they are reasonably well taken care of at a reasonable price. Upper-middle-class professional workers receive high quality care and don’t realize how heavily-subsidized and cost-inefficient that care is. These two groups make up a lot of the swing voters. The majority of those swing voters have bought into the decades of neo-fascist propaganda that the poor are undeserving for one reason or another, and therefore their sense of natural human empathy is damped down. and the poor themselves are not politically mobilized. Big business in general might be just as happy for government to take the responsibility for health coverage off their shoulders, but they are not really disadvantaged financially by the present system so they don’t fight it. The big exception of course is the insurance/finance industry which benefits directly from the inefficiencies of the current system, and certainly is politically mobilized.

“delusions of merit”

This long article describes how people who have made it tend to have have “delusions of merit“. In other words, they believe they have earned their place in society through effort or self-discipline, that those less fortunate have not made the effort or do not have the self-discipline, and therefore they feel no moral obligation to help those beneath them. The problem is, we are not talking about a vast middle class refusing to help a small underclass here. We are talking about a small minority failing to feel compassion for the vast majority of fellow people.

happy financial crisis anniversary

Happy 10-year anniversary to the 2008 financial crisis! The Week has a short summary of what caused it.

The bursting of the U.S. housing bubble triggered a chain reaction that nearly brought down the global financial system. Between 1997 and 2006, a combination of low interest rates, relaxed lending regulations, and government policies designed to encourage home buying fueled a housing boom that saw the average price for a U.S. home increase by 124 percent. Amid the speculative frenzy, financial institutions issued hundreds of billions of dollars in questionable loans to so-called subprime borrowers with poor credit histories. Borrowers’ ability to repay didn’t matter to lenders, because they were able to get subprime mortgages off their books by repackaging them into wildly complex derivative financial instruments like mortgage-backed securities and collateralized debt obligations. Corporate and institutional investors gobbled up these offerings, which not only offered attractive returns but also received high safety ratings from the major credit-rating agencies. In 2007 and 2008, the inevitable wave of foreclosures finally arrived — exposing the entire financial system to catastrophic losses…

The worst financial panic since the Great Depression. Already dangerously over-leveraged from years of risky bets, banks were unable to absorb the huge losses. The first big domino to fall was the investment bank Bear Stearns, which collapsed in March 2008. Later, Lehman Brothers filed for the largest bankruptcy in U.S. history, and the government bailed out insurance giant AIG, which had sold enormous amounts of credit default swaps insuring the bad investments. As panic spread, lending and investment screeched to a halt, and the country was plunged into the worst financial crisis since the stock market collapse of 1929…

The U.S. government took extraordinary measures to prevent a full-scale economic collapse. Under President George W. Bush, Congress approved a $700 billion bailout purchasing toxic assets to restore confidence in the market; under President Barack Obama, it authorized a $787 billion stimulus package to stimulate spending in the private sector. But massive damage had already been done. The economy slipped into a deep recession. The Dow Jones industrial average and the S&P 500 lost more than half their value. Unemployment peaked at roughly 10 percent by October 2009.

They say the system is safer now because of Dodd-Frank. Well, Dodd-Frank is under savage attack by our current administration, so I would not be too confident the system is safe. The article also explains that even though the economy has come back on average, Americans of average income and below are still feeling the effects and may never fully recover to where they would have been without the crisis.

March 2018 in Review

Most frightening stories:

Most hopeful stories:

  • One large sprawling city could be roughly the economic equivalent of several small high-density cities. This could potentially be good news for the planet if you choose in favor of the latter, and preserve the spaces in between as some combination of natural land and farm land.
  • The problems with free parking, and solutions to the problems, are well known. This could potentially be good news if anything were to be actually done about it. Self-parking cars could be really fantastic for cities.
  • The coal industry continues to collapse, and even the other fossil fuels are saying they are a bunch of whining losers. And yes, I consider this positive. I hope there aren’t too many old ladies whose pensions depend on coal at this point.

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both:

beating the war drum

This article from The Intercept explains how the U.S. government and media often fail to examine the motives of foreign leaders, and this is one reason we keep making mistakes that lead to war.

That power is called cognitive empathy, and it’s not what you might think. It doesn’t involve feeling people’s pain or even caring about their welfare. Emotional empathy is the kind of empathy that accomplishes those things. Cognitive empathy — sometimes called perspective taking — is a matter of seeing someone’s point of view: understanding how they’re processing information, how the world looks to them. Sounds unexceptional, I know — like the kind of thing you do every day. But there are at least two reasons cognitive empathy deserves more attention than it gets.

First, because the failure to exercise it lies behind two of the most dangerous kinds of misperceptions in international affairs: misreading a nation’s military moves as offensive when the nation itself considers them defensive, and viewing some national leaders as crazy or fanatical when in fact they’ll respond predictably to incentives if you understand their goals.

The second reason cognitive empathy deserves more attention is that, however simple it sounds, it can be hard to exercise. Somewhat like emotional empathy, cognitive empathy can shut down or open up depending on your relationship to the person in question — friend, rival, enemy, kin — and how you’re feeling about them at the moment.

It is important to understand that the leaders of these countries are often terrified of the United States. Iran, North Korea, and to some extent China are almost certainly afraid of the United States. The Soviet leadership was terrified of the U.S. in the 1980s, a fact we didn’t appreciate fully until after the fact.

Understanding this doesn’t mean the United States can’t compete and defend itself against threats. It could help us finds ways to reduce tensions that ultimately lead to a safer world for everyone.

“all criminal roads led to Trump Tower”

  • Here is the New Yorker article on the Steele dossier. Basically, it exposes the largely successful Republican attempts to discredit Steele as pure propaganda. The truth is that Steele is an ex-British civil servant with no ties to U.S. politics, who runs a private investigation agency specializing in the Russian government. Apparently, it is common for politicians to hire private investigators through law firms in a sort of double blind arrangement, where neither the politician nor the investigator knows who has been hired or who is paying the bills. That is what happened in this case. First an anti-Trump Republican hired a law firm which hired a U.S. private investigator who hired Steele, and later the DNC and Hillary Clinton campaign took over paying the bills. The Clinton campaign never knew they were paying Steele, and Steele never knew who was paying him. The information he dug up was shocking, basically that Trump and his associates have extensive ties to Russian government and organized crime figures, and they are at least in a position to be blackmailed if they are not actual Russian intelligence assets. Steele took this information to the FBI, who started and supposedly are continuing a serious counterintelligence investigation. So the information in the dossier appears to be credible, and both the FBI and Robert Mueller special counsel investigation have it and are following up. So if Trump is a Russian spy, he is going to get nailed.

The article is long, but keep plugging through it and you come to the fascinating story of multiple investigations Steele has been instrumental in, including the one that brought down FIFA. And those investigations, which are completely disparate, keep leading back to Trump Tower.

Steele might have been expected to move on once his investigation of the bidding was concluded. But he had discovered that the corruption at fifa was global, and he felt that it should be addressed. The only organization that could handle an investigation of such scope, he felt, was the F.B.I. In 2011, Steele contacted an American agent he’d met who headed the Bureau’s division for serious crimes in Eurasia. Steele introduced him to his sources, who proved essential to the ensuing investigation. In 2015, the Justice Department indicted fourteen people in connection with a hundred and fifty million dollars in bribes and kickbacks. One of them was Chuck Blazer, a top fifa official who had embezzled a fortune from the organization and became an informant for the F.B.I. Blazer had an eighteen-thousand-dollar-per-month apartment in Trump Tower, a few floors down from Trump’s residence.

Nobody had alleged that Trump knew of any fifa crimes, but Steele soon came across Trump Tower again. Several years ago, the F.B.I. hired Steele to help crack an international gambling and money-laundering ring purportedly run by a suspected Russian organized-crime figure named Alimzhan Tokhtakhounov. The syndicate was based in an apartment in Trump Tower. Eventually, federal officials indicted more than thirty co-conspirators for financial crimes. Tokhtakhounov, though, eluded arrest, becoming a fugitive. Interpol issued a “red notice” calling for his arrest. But, in the fall of 2013, he showed up at the Miss Universe contest in Moscow—and sat near the pageant’s owner, Donald Trump.

“It was as if all criminal roads led to Trump Tower,” Steele told friends.

So there you have it. It appears Trump is an international criminal mastermind, a Professor Moriarty, except that Professor Moriarty never got himself elected Queen.