jump to navigation

A Thousand Words August 17, 2012

Posted by rogerhollander in Economic Crisis, History.
Tags: , , , , , , , , ,
add a comment

Bill Clinton’s $80 Million Payday, or Why Politicians Don’t Care That Much About Reelection August 4, 2012

Posted by rogerhollander in Democracy, Economic Crisis.
Tags: , , , , , , , , , , ,
1 comment so far
 

Future Millionaires

Tuesday, May 22, 2012

 

“There was a kind of inflection point during the five-year period between 1997 and 2003 — the late Clinton and/or early Bush administration — when all the rules just went away. You went from a period, a regime, where people did have at least some concern about going to jail, to a point where everything is legal, and derivatives couldn’t be regulated at all and nobody went to jail for anything. And looking back I would say that this period definitely started under Clinton. You absolutely cannot blame this on George W. Bush.” – Charles Ferguson of Inside Job

“I never had any money until I got out of the White House, you know, but I’ve done reasonably well since then.” Bill Clinton

On December 21, 2000, President Bill Clinton signed a bill called the Commodities Futures Modernization Act. This law ensured that derivatives could not be regulated, setting the stage for the financial crisis. Just two months later, on February 5, 2001, Clinton received $125,000 from Morgan Stanley, in the form of a payment for a speech Clinton gave for the company in New York City. A few weeks later, Credit Suisse also hired Clinton for a speech, at a $125,000 speaking fee, also in New York. It turns out, Bill Clinton could make a lot of money, for not very much work.

Today, Clinton is worth something on the order of $80 million (probably much more, but we don’t really know), and these speeches have become a lucrative and consistent revenue stream for his family. Clinton spends his time offering policy advice, writing books, stumping for political candidates, and running a global foundation. He’s now a vegan. He makes money from books. But the speaking fee money stream keeps coming in, year after year, in larger and larger amounts.

Most activists and political operatives are under a delusion about American politics, which goes as follows. Politicians will do *anything* to get reelected, and they will pander, beg, borrow, lie, cheat and steal, just to stay in office. It’s all about their job.

This is 100% wrong. The dirty secret of American politics is that, for most politicians, getting elected is just not that important. What matters is post-election employment. It’s all about staying in the elite political class, which means being respected in a dense network of corporate-funded think tanks, high-powered law firms, banks, defense contractors, prestigious universities, and corporations. If you run a campaign based on populist themes, that’s a threat to your post-election employment prospects. This is why rising Democratic star and Newark Mayor Corey Booker reacted so strongly against criticism of private equity – he’s looking out for a potential client after his political career is over, or perhaps, during interludes between offices. Running as a vague populist is manageable, as long as you’re lying to voters. If you actually go after powerful interests while in office, then you better win, because if you don’t, you’ll have basically nowhere to go. And if you lose, but you were a team player, then you’ll have plenty of money and opportunity. The most lucrative scenario is to win and be a team player, which is what Bill and Hillary Clinton did. The Clinton’s are the best at the political game – it’s not a coincidence that deregulation accelerated in the late 1990s, as Clinton and his whole team began thinking about their post-Presidential prospects.

Corruption used to be more overt. Lyndon Johnson made money while in office, by illicitly garnering lucrative FCC licenses. It was the first neoliberal President, Jimmy Carter, who began the post-career payoff trend in the Democratic Party. In 1978, Archer Daniels Midland CEO Dwayne Andreas convinced Carter to back ethanol subsidies. After Carter lost to Reagan, he faced financial problems, as his peanut warehouse had been mismanaged and was going bankrupt. AMD stepped in, overpaying for the property. But Carter wasn’t nearly as skilled as Clinton, because he didn’t stay in the club.

Over the course of the next ten years after his Presidency, Clinton brought in roughly $8-10 million a year in speaking fees. In 2004, Clinton got $250,000 from Citigroup and $150,000 from Deutsche Bank. Goldman paid him $300,000 for two speeches, one in Paris. As the bubble peaked, in 2006, Clinton got $150,000 paydays each from Citigroup (twice), Lehman Brothers, the Mortgage Bankers Association, and the National Association of Realtors. In 2007, it was Goldman again, twice, Lehman, Citigroup, and Merrill Lynch. He didn’t just reap speaking fee cash from the financial services sector – corporate titans like Oracle and outsourcing specialist Cisco paid up, as did many Israel-focused groups, Middle Eastern interests, and universities. Does this explain the finance-friendly, oil-friendly and Israel First-friendly policies pursued by the State Department under Hillary Clinton? Who knows? But if you could legally deliver millions in cash to the husband of a high-level political official, it wouldn’t hurt your policy goals.

Speaking fee money isn’t just money, it is easy money. In one appearance, for one hour, Clinton can make $125,000 to $500,000. At an hourly rate, that’s between $250 million to $1 billion annually. It isn’t the case that Clinton is a billionaire, but it is the case that Clinton can, whenever he wants, make money as quickly and as easily as a billionaire. He is awash in cash, and cash is useful. Cash finances his lifestyle. Cash helped backstop his wife’s Presidential campaign when it was on the ropes.

And these speaking fees aren’t the only money Clinton got, it’s just the easiest cash to find because of disclosure laws. Apparently, Clinton’s firm apparently had a paid $100k+ a month consulting relationship with MF Global, and Clinton and Tony Blair have teamed up to help hedge funds raise money. His daughter worked for a giant hedge fund and political ally (Avenue Capital). And Clinton has unusual relationships with billionaires and Dubai-based investors.

Bill and Hillary Clinton are the best at what they do, but they aren’t the only ones who do it. In fact, this is what politics is increasingly about, not elections, but staying in the club. Erskine Bowles, former White House Chief of Staff, lost two Senate elections. But he’s on the board of Facebook and Morgan Stanley, as well as authoring the highly influential Simpson-Bowles plan to gut Social Security and Medicare. Tom Daschle, who lost a Senate race in 2004, is a millionaire who in large part crafted Obama’s health care plan. Former Senator Judd Gregg is now at Goldman Sachs. Current Chicago Mayor Rahm Emanuel made $12 million in between his stint at the Clinton White House which ended in 2000 and his election to Congress in 2002. Former Congressman Harold Ford, now at Morgan Stanley, is routinely on TV making political claims. Larry Summers is on the board of the high-flying start-up Square. Meanwhile, Russ Feingold, a Senator who did go after Wall Street, is a professor in the Midwest. Eliot Spitzer is a struggling TV host and writer.

In other words, Barack Obama and his franchise are emulating the Clinton’s, and are speaking not to voters, but to potential post-election patrons. That’s what their policy goals are organized around. So when you hear someone talking about how politicians just want to be reelected, roll your eyes. When you hear an argument about the best message or policy framework to use for reelection, stop listening. That’s not what politicians really care about. Elections in many ways are just like regular season games in basketball – they are worth winning, but it’s not worth risking an injury. The reason Obama won’t prosecute bankers, or run anything but a very mild sort of populism, is because he’s not really talking to voters. He just wants to be slightly more appealing than Romney. He’s really talking to the people who made Bill and Hillary Clinton a very wealthy couple, his future prospective clients. We don’t call it bribery, but that’s what it is. Bill Clinton made a lot of money when he signed the bill deregulating derivatives and repealed Glass-Steagall. The payout just came later, in the form of speaking fees from elite banks and their allies.

Ironically, Clinton has come to express regret about deregulating derivatives. He has not given the money back.

Topics: Guest Post

Email This Post Email This Post Posted by Matt Stoller at 9:00 am

One (Obscenely Profitable) Day In the Life of Big Oil August 2, 2012

Posted by rogerhollander in Economic Crisis, Energy, Environment.
Tags: , , , , , , , , , , ,
add a comment
08.02.12 – 12:02 PM, www.commondreams.org

 

by Abby Zimet

Every hour this year, the five biggest oil companies have made $14,400,000 in profits, or more in one minute than what 96% of American households earn in one year. Each hour they also received over $270,000 in federal tax breaks, or $2.4 billion a year. Romney and the GOP want to double that, even though they already pay under 17% in taxes. ThinkProgress created a great chart tracking their money and pollutants over one day.

Comments

 

 Showing 4 comments
0 new comment was just posted. Show
  • Suspiria_de_profundis 1 comment collapsed CollapseExpand

    It not just BIG OIL. It the entire rotten Corporate State that does this.

    70 percent of all income announced as profits last year by JP MOrgan were bailout funds and subsidies.

    General Electric pays a negative income tax rate as they outsource more jobs to China.

    Caterpillar makes record profits yet demands its workers in USA take massive wage cuts or jobs will be moved off shore.

    Wal_Mart employees are paid such a pittance as its owners roll in billions of dollars, thaty the State has to subsize the worker with health care and food stamps.

    CAPITALISM is the problem.

     

    show more show less

     

     
  • Vlorg 1 comment collapsed CollapseExpand

    So here we have some nasty-looking facts about Big Oil, combined with a PhotoShop-ped photo of a hapless-looking GW Bush (“Will Kill for Oil”) and the assertion that “Romney and the GOP want to double” Big Oil’s federal tax breaks.

    Should we therefore see Big Oil’s evil-doing as mainly evincing the wickedness of “Republicans?” Should we therefore imagine that Democrats are any less the slaves of the oil corporations than Republicans? Isn’t there a guy in the White House named Obama who just in the past 2 years, ran interference for BP in the Gulf of Mexico oil disaster, after reversing himself and coming out in support of off-shore drilling?

    show more show less

     

     
  • theoldgoat 1 comment collapsed CollapseExpand

    The wiggly fingered hypnosis of greed and power – the delusional thingification of life:

    dye your hair
    buy the most ‘exclusive’ expensive lifestyle that proves you are .001%
    live like there’s no tomorrow

    will get you

    ‘died’ hair
    exclusion from the natural paradigm
    no tomorrow

    What a return on investment – yahoooooo!!!

    show more show less

     

     
  • speakup2day 1 comment collapsed CollapseExpand

    “Each hour they also received over $270,000 in federal tax breaks, or
    $2.4 billion a year. Romney and the GOP want to double that, even though
    they already pay under 17% in taxes.”

    So, will we next hear Obama and the Democrats tell us they will double the federal tax breaks to the five biggest oil companies to $540,000 per hour, or $4.8 billion a year? Because that’s how this administration works.

Wal-Mart: 50 Years of Gutting America’s Middle Class July 8, 2012

Posted by rogerhollander in Economic Crisis.
Tags: , , , , , , , ,
add a comment
Roger’s note: WalMart’s story is the story of capitalism, the inevitable outcome of capitalist economic relationships.  The “competitive advantage” in our inhuman capitalist world is achieved by taking advantage of cheap labor.  The current euphuism is “outsourcing.”  Shoppers who “enjoy” the low prices at WalMart do so largely on the backs of  Chinese and other Asian wage slaves as they watch their local businesses and communities destroyed.
 
Cheap labor is good news for the WalMarts of the world and their parasitic shareholders, but it is very bad news for the rest of us who need to make a living to feed ourselves and our children.  The heirs of Sam Walton, who own about half of Walmart’s stock and have a net worth equal to the combined assets of the bottom one-third of Americans, will enjoy the 50 year celebration as they tell the rest of the world: “let them eat cake.”
 
Published on Monday, July 2, 2012 by OtherWords

 

Walmart’s explosive growth has gutted two key pillars of the American middle class: small businesses and well-paid manufacturing jobs

Movie poster detail from the documentary, ‘Walmart: The High Cost of Low Price’.

Sam Walton opened the first Walmart store in Rogers, Arkansas, 50 years ago this month. Sprawled along a major thoroughfare outside the city’s downtown, that inaugural store embodied many of the hallmarks that have since come to define the Walmart way of doing business. Walton scoured the country for the cheapest merchandise and deftly exploited a loophole in federal law to pay his mostly female workforce less than minimum wage.

That relentless focus on squeezing workers and suppliers for every advantage has paid off since July 1962. Walmart is now the second-largest corporation on the planet. It took in almost half-a-trillion dollars last year at more than 10,000 stores worldwide.

Walmart now captures one of every four dollars Americans spend on groceries. Its stores are so plentiful that it’s easy to imagine that the retailer has long since reached the upper limit of its growth potential. It hasn’t. Walmart has opened over 1,100 new supercenters since 2005 and expanded its U.S. sales by 35 percent. It aims to keep on growing that fast. With an eye to infiltrating urban areas, Walmart recently introduced smaller “neighborhood markets” and “express” stores.

Whatever we may have saved shopping at Walmart, we’ve more than paid for it in diminished opportunities and declining income.

While the big-box business model Sam Walton pioneered half a century ago has been great for Walmart, it hasn’t been so great for the U.S. economy.

Walmart’s explosive growth has gutted two key pillars of the American middle class: small businesses and well-paying manufacturing jobs.

Between 2001 and 2007, some 40,000 U.S. factories closed, eliminating millions of jobs. While Walmart’s ceaseless search for lower costs wasn’t the only factor that drove production overseas, it was a major one. During these six years, Walmart’s imports from China tripled in value from $9 billion to $27 billion.

Small, family-owned retail businesses likewise closed in droves as Walmart grew. Between 1992 and 2007, the number of independent retailers fell by over 60,000, according to the U.S. Census.

Their demise triggered a cascade of losses elsewhere. As communities lost their local retailers, there was less demand for services like accounting and graphic design, less advertising revenue for local media outlets, and fewer accounts for local banks. As Walmart moved into communities, the volume of money circulating from business to business declined. More dollars flowed into Walmart’s tills and out of the local economy.

In exchange for the many middle-income jobs Walmart eliminated, all we got in return were low-wage jobs for the workers who now toil in its stores. To get by, many Walmart employees have no choice but to rely on food stamps and other public assistance.

Walmart’s history is the story of what has gone wrong in the American economy. Wages have stagnated. The middle class has shrunk. The ranks of the working poor have swelled. Whatever we may have saved shopping at Walmart, we’ve more than paid for it in diminished opportunities and declining income.

And the worse things get, the more alluring Walmart’s siren call of low prices becomes. While the Ford Motor Co. once profited by creating a workforce that could afford to buy its cars, today Walmart profits by ensuring that Americans cannot afford to shop anywhere else. The average family of four now spends over $4,000 a year at Walmart.

Such market concentration is unprecedented in U.S. history, as is the concentration of wealth it has engendered. Sam Walton’s heirs own about half of Walmart’s stock and have a net worth equal to the combined assets of the bottom one-third of Americans — about 100 million people. This year alone, the Waltons will pocket $2.7 billion in dividends from their Walmart holdings.

They are among the few Americans who have reason to celebrate Walmart’s 50th birthday. As for the rest of us, the milestone offers a good moment to reflect on the company’s business model and where it might lead us if we allow Walmart’s growth to continue full-steam for another 50 years.

This work is licensed under a Creative Commons License

<!–

–>

Stacy Mitchell

Stacy Mitchell is a senior researcher with the Institute for Local Self-Reliance, which challenges the wisdom of economic consolidation and works to advance policies that build strong local economies. Stacy directs initiatives on community banking and independent retail. She is the author of Big-Box Swindle and produces a popular monthly bulletin called the Hometown Advantage.

Preying on the Poor: How Government and Corporations Use the Poor as Piggy Banks May 17, 2012

Posted by rogerhollander in Criminal Justice, Economic Crisis, Poverty.
Tags: , , , , , , , ,
add a comment

By Barbara Ehrenreich, TomDispatch | News Analysis

Thursday, 17 May 2012 10:09

Individually the poor are not too tempting to thieves, for obvious reasons. Mug a banker and you might score a wallet containing a month’s rent. Mug a janitor and you will be lucky to get away with bus fare to flee the crime scene. But asBusiness Week helpfully pointed out in 2007, the poor in aggregate provide a juicy target for anyone depraved enough to make a business of stealing from them.

The trick is to rob them in ways that are systematic, impersonal, and almost impossible to trace to individual perpetrators. Employers, for example, can simply program their computers to shave a few dollars off each paycheck, or they can require workers to show up 30 minutes or more before the time clock starts ticking.

Lenders, including major credit companies as well as payday lenders, have taken over the traditional role of the street-corner loan shark, charging the poor insanely high rates of interest. When supplemented with late fees (themselves subject to interest), the resulting effective interest rate can be as high as 600% a year, which is perfectly legal in many states.

It’s not just the private sector that’s preying on the poor. Local governments are discovering that they can partially make up for declining tax revenues through fines, fees, and other costs imposed on indigent defendants, often for crimes no more dastardly than driving with a suspended license. And if that seems like an inefficient way to make money, given the high cost of locking people up, a growing number of jurisdictions have taken to charging defendants for their court costs and even the price of occupying a jail cell.

The poster case for government persecution of the down-and-out would have to be Edwina Nowlin, a homeless Michigan woman who was jailed in 2009 for failing to pay $104 a month to cover the room-and-board charges for her 16-year-old son’s incarceration. When she received a back paycheck, she thought it would allow her to pay for her son’s jail stay. Instead, it was confiscated and applied to the cost of her own incarceration.

Government Joins the Looters of the Poor

You might think that policymakers would take a keen interest in the amounts that are stolen, coerced, or extorted from the poor, but there are no official efforts to track such figures. Instead, we have to turn to independent investigators, like Kim Bobo, author of Wage Theft in America, who estimates that wage theft nets employers at least $100 billion a year and possibly twice that. As for the profits extracted by the lending industry, Gary Rivlin, who wrote Broke USA: From Pawnshops to Poverty, Inc. — How the Working Poor Became Big Business, says the poor pay an effective surcharge of about $30 billion a year for the financial products they consume and more than twice that if you include subprime credit cards, subprime auto loans, and subprime mortgages.

These are not, of course, trivial amounts. They are on the same order of magnitude as major public programs for the poor. The government distributesabout $55 billion a year, for example, through the largest single cash-transfer program for the poor, the Earned Income Tax Credit; at the same time, employers are siphoning off twice that amount, if not more, through wage theft.

And while government generally turns a blind eye to the tens of billions of dollars in exorbitant interest that businesses charge the poor, it is notably chary with public benefits for the poor. Temporary Assistance to Needy Families, for example, our sole remaining nationwide welfare program, gets only $26 billion a year in state and federal funds. The impression is left of a public sector that’s gone totally schizoid: on the one hand, offering safety-net programs for the poor; on the other, enabling large-scale private sector theft from the very people it is supposedly trying to help.

At the local level though, government is increasingly opting to join in the looting. In 2009, a year into the Great Recession, I first started hearing complaints from community organizers about ever more aggressive levels of law enforcement in low-income areas. Flick a cigarette butt and get arrested for littering; empty your pockets for an officer conducting a stop-and-frisk operation and get cuffed for a few flakes of marijuana. Each of these offenses can result, at a minimum, in a three-figure fine.

And the number of possible criminal offenses leading to jail and/or fines has been multiplying recklessly. All across the country — from California and Texas to Pennsylvania — counties and municipalities have been toughening laws against truancy and ratcheting up enforcement, sometimes going so far as to handcuff children found on the streets during school hours. In New York City, it’s now a crime to put your feet up on a subway seat, even if the rest of the car is empty, and a South Carolina woman spent six days in jail when she was unable to pay a $480 fine for the crime of having a “messy yard.” Some cities — most recently, Houston and Philadelphia — have made it a crime to share food with indigent people in public places.

Being poor itself is not yet a crime, but in at least a third of the states, being in debt can now land you in jail. If a creditor like a landlord or credit card company has a court summons issued for you and you fail to show up on your appointed court date, a warrant will be issued for your arrest. And it is easy enough to miss a court summons, which may have been delivered to the wrong address or, in the case of some bottom-feeding bill collectors, simply tossed in the garbage — a practice so common that the industry even has a term for it: “sewer service.” In a sequence that National Public Radio reports is “increasingly common,” a person is stopped for some minor traffic offense — having a noisy muffler, say, or broken brake light — at which point the officer discovers the warrant and the unwitting offender is whisked off to jail.

Local Governments as Predators

Each of these crimes, neo-crimes, and pseudo-crimes carries financial penalties as well as the threat of jail time, but the amount of money thus extracted from the poor is fiendishly hard to pin down. No central agency tracks law enforcement at the local level, and local records can be almost willfully sketchy.

According to one of the few recent nationwide estimates, from the National Association of Criminal Defense Lawyers, 10.5 million misdemeanors were committed in 2006. No one would risk estimating the average financial penalty for a misdemeanor, although the experts I interviewed all affirmed that the amount is typically in the “hundreds of dollars.” If we take an extremely lowball $200 per misdemeanor, and bear in mind that 80%-90% of criminal offenses are committed by people who are officially indigent, then local governments are using law enforcement to extract, or attempt to extract, at least $2 billion a year from the poor.

And that is only a small fraction of what governments would like to collect from the poor. Katherine Beckett, a sociologist at the University of Washington, estimates that “deadbeat dads” (and moms) owe $105 billion in back child-support payments, about half of which is owed to state governments as reimbursement for prior welfare payments made to the children. Yes, parents have a moral obligation to their children, but the great majority of child-support debtors are indigent.

Attempts to collect from the already-poor can be vicious and often, one would think, self-defeating. Most states confiscate the drivers’ licenses of people owing child support, virtually guaranteeing that they will not be able to work. Michigan just started suspending the drivers’ licenses of people who owe money for parking tickets. Las Cruces, New Mexico, just passed a law that punishes people who owe overdue traffic fines by cutting off their water, gas, and sewage.

Once a person falls into the clutches of the criminal justice system, we encounter the kind of slapstick sadism familiar to viewers of Wipeout. Many courts impose fees without any determination of whether the offender is able to pay, and the privilege of having a payment plan will itself cost money.

In a study of 15 states, the Brennan Center for Justice at New York University found 14 of them contained jurisdictions that charge a lump-sum “poverty penalty” of up to $300 for those who cannot pay their fees and fines, plus late fees and “collection fees” for those who need to pay over time. If any jail time is imposed, that too may cost money, as the hapless Edwina Nowlin discovered, and the costs of parole and probation are increasingly being passed along to the offender.

The predatory activities of local governments give new meaning to that tired phrase “the cycle of poverty.” Poor people are more far more likely than the affluent to get into trouble with the law, either by failing to pay parking fines or by incurring the wrath of a private-sector creditor like a landlord or a hospital.

Once you have been deemed a criminal, you can pretty much kiss your remaining assets goodbye. Not only will you face the aforementioned court costs, but you’ll have a hard time ever finding a job again once you’ve acquired a criminal record. And then of course, the poorer you become, the more likely you are to get in fresh trouble with the law, making this less like a “cycle” and more like the waterslide to hell. The further you descend, the faster you fall — until you eventually end up on the streets and get busted for an offense like urinating in public or sleeping on a sidewalk.

I could propose all kinds of policies to curb the ongoing predation on the poor. Limits on usury should be reinstated. Theft should be taken seriously even when it’s committed by millionaire employers. No one should be incarcerated for debt or squeezed for money they have no chance of getting their hands on. These are no-brainers, and should take precedence over any long term talk about generating jobs or strengthening the safety net. Before we can “do something” for the poor, there are some things we need to stop doing to them.

To stay on top of important articles like these, sign up to receive the latest updates from TomDispatch.com here

 

 
 


View Comments


Add New Comment

 
  • Post as …
  • Image
Sort by popular nowSort by best ratingSort by newest firstSort by oldest first

Showing 10 comments

  • TedMfftt 2 comments collapsed CollapseExpand

    Ahh, a return to Nixon’s “War on Poverty” which was rebranded as a war on drugs. If only we were a nation of Christians who followed the teachings of Christ rather than those of his supposed followers.

     

     
  • Patti Haynes 1 comment collapsed CollapseExpand

    Religion causes problems. It never fixes them. There are always different factions fighting for their beliefs; that their beliefs are the true and only correct beliefs and all the others are wrong and should be punished. That’s why many wars have been fought throughout history. Government and religion do not mix!! Everyone in America has the right to practice their own personal religious beliefs, but not force those beliefs on others. Sadly, that is what’s happening now with this Evangelical push in this country. They want to set up their Theocratic government and force us all to do as they believe.

     

     
  • Linda Mae Chover 1 comment collapsed CollapseExpand

    Sounds like a bad dream, but many realities do.

     

     
  • Brooke 1 comment collapsed CollapseExpand

    Debtor’s prisons just changed their name to corrections facilities. It’s ironic that often corrections systems spend a lot of money educating inmates – get the GED, learn salable skills, get counseling, learn social skills, so you can reenter society and get a job. Returning military will be in competition w/those already out of work. For those paroled, getting a job has a myriad of difficulties that start with parole rules that are virtually designed to help them fail parole.

    This snowball effect on the poor trickles up and drags down the middle class. Unfortunately, most taxpayers are clueless to the negative effects of ‘tough on crime’ and ‘zero tolerance’ regulations they vote for. Programs that actually help get people off drugs and alcohol (drug), get training, etc. are generally viewed as ‘soft on crime’. If forward thinking judges cannot get the public to accept the positive effects of those programs then the poor are not going to get the help they need.

     

     
  • KiaMistilis 1 comment collapsed CollapseExpand

    I knew that squeezing the poor was bad in the U.S…I didn’t know it was THAT bad. Thanks for this concise and well written piece.

     

     
  • Wescal 1 comment collapsed CollapseExpand

    My wife was just charged $70 to change her insurance company paperwork at a doctors office. Imagine what we’ll pay if every doctors office does that.

     

     
  • Patti Haynes 2 comments collapsed CollapseExpand

    I had to pay to get my records from every one of my doctors! They used to be considered ‘your’ records and given to you free of charge, since you’ve paid for your visits to the doctor. Not anymore! It took several months and an attorney to get my doctors to release my records and a hefty sum of money!! This is not the same country I grew up in the 1950′s. America is a sad, sad place now. I used to be so proud to be an American because what this country stood for and how we took care of our people… now, I am not proud anymore. I am disgusted that the rich have bought this country, even the government! SCOTUS has given ‘Money’ the power and rights of speech while taking them away from WE the People! Five Justices are conservative, card carrying, Koch associates! Yet they are allowed to have the last word on all Constitutional conversation in the USA! This doesn’t even begin to touch on the Tea Party, who has taken over the Congress and pays NO attention to their constituency and their needs! They had their agendas set before they were ever elected and those agendas were to rape and pillage the poor and indigent and pass legislation counter-intuitive to the betterment of the American society! Theirs is an agenda to dupe all of us into believing this is all for Religious Freedom and to save unborn babies. It’s all LIES!! They could could NOT care less for anything or anybody!!! It’s all about MONEY and POWER of a very few old, white men!!!

    I am bereft of hope, but will keep fighting!

     

     
  • Dwaldon13 1 comment collapsed CollapseExpand

    I can relate to your final sentence Patti. I guess what struck me hardest concerning this article was the number of times “government” was implicated in the fleecing of the poor. And despite your correct analysis of the Tea Party and The Supreme Court, BOTH parties are heavily enmeshed in their abdication of principles and seeing government other than a self-aggrandizing machine designed to “aid” the wealthy, fight perdurable “wars on terror,” expand empire,and provide
    “perks and benefits” to those who have made their way into the political “club.”
    I am not a religious person but after hearing “God Bless America,” for the zillioneth time since the “government manufactured” tragedy of 9/11, I find myself desiring to inquire of any “honest” Christian…why would God bless America? I grew up in the 60′s and it seemed, for a time, despite the atrocity of Vietnam, we might be headed in the right direction in terms of shared equality.
    It sure doesn’t appear to be the case now. From an aging white man who “doesn’t” have any money or power. Perhaps that’s a blessing. I’ll keep fighting too!

     

     
  • Don Roberts 1 comment collapsed CollapseExpand

    Really need to look at the Workforce Investment Act (WIA) and the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) as mechanisms the gov’t uses to force poor people into low wage, meaningless jobs.

     

     
  • Kellie 1 comment collapsed CollapseExpand

    I know someone who got 2 years in prison for stealing an ipod…while I read stories like the one I recently came across about a 20 year old girl with no drivers license (never did acquire one) who ran over and killed a biker, but got 90 days probation because she was related to the sheriff….Where I live if you can afford an attorney, no matter what the offense, they pretty much leave you alone or drop the charges, but if you are poor – you are incarcerated, drilled to death with fines, fees, probation costs, and excessive harassment by the police.

     

‘Mortgage Settlement’ Funds Paying for Prisons, Not Foreclosure Relief May 16, 2012

Posted by rogerhollander in Economic Crisis.
Tags: , , , , , , ,
1 comment so far
Published on Wednesday, May 16, 2012 by Common Dreams

 

Needy states use housing aid cash to fund prisons, education shortfalls, and plug budgets

- Common Dreams staff

As part of a financial settlement over fraudulent mortgage practices earlier this year, some of the nation’s largest banks agreed to make payments to state government totaling $2.5 billion that would be earmarked for victims of wrongful foreclosure and other distressed homeowners. Instead, reports the New York Times today, a majority of those funds are going to plug state budget shortfalls, leaving homeowners without recourse and validating critics who questioned the strength of the deal when it was announced in February.

Protesters staged a rally against home foreclosures in California on Tuesday outside the State Capitol in Sacramento. (Max Whittaker for The New York Times)

The total settlement was for $25 billion, but only a tenth of that was to come in the form of cash payment to the states. The remainder was to come in the form of “credits” for reducing mortgage debt and other loan activities.

Andy Schneggenburger, the executive director of the Atlanta Housing Association of Neighborhood-Based Developers, told the Times the decision showed “a real lack of comprehension of the depths of the foreclosure problem.”

* * *

The New York Times: Needy States Use Housing Aid Cash to Plug Budgets

Only 27 states have devoted all their funds from the banks to housing programs, according to a report by Enterprise Community Partners, a national affordable housing group. So far about 15 states have said they will use all or most of the money for other purposes.

In Texas, $125 million went straight to the general fund. Missouri will use its $40 million to soften cuts to higher education. Indiana is spending more than half its allotment to pay energy bills for low-income families, while Virginia will use most of its $67 million to help revenue-starved local governments.

Like California, some other states with outsize problems from the housing bust are spending the money for something other than homeowner relief. Georgia, where home prices are still falling, will use its $99 million to lure companies to the state.

“The governor has decided to use the discretionary money for economic development,” said a spokesman for Nathan Deal, Georgia’s governor, a Republican. “He believes that the best way to prevent foreclosures amongst honest homeowners who have experienced hard times is to create jobs here in our state.”

Andy Schneggenburger, the executive director of the Atlanta Housing Association of Neighborhood-Based Developers, said the decision showed “a real lack of comprehension of the depths of the foreclosure problem.”

The $2.5 billion was intended to be under the control of the state attorneys general, who negotiated the settlement with the five banks — Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally. But there is enough wiggle room in the agreement, as well as in separate terms agreed to by each state, to give legislatures and governors wide latitude. The money can, for example, be counted as a “civil penalty” won by the state, and some leaders have argued that states are entitled to the money because the housing crash decimated tax collections.

Shaun Donovan, the federal housing secretary, has been privately urging state officials to spend the money as intended. “Other uses fail to capitalize on the opportunities presented by the settlement to bring real, concerted relief to homeowners and the communities in which they live,” he said Tuesday.

Some attorneys general have complied quietly with requests to repurpose the money, while others have protested. Lisa Madigan, the Democratic attorney general of Illinois, said she would oppose any effort to divert the funds. Tom Horne, the Republican attorney general of Arizona, said he disagreed with the state’s move to take about half its $97 million, which officials initially said was needed for prisons.

Does the Black Political Class Actually Protect or Defend Black People? If Not, What Do They Do? May 12, 2012

Posted by rogerhollander in Democracy, Economic Crisis, Poverty, Race.
Tags: , , , , , , , , , , , , ,
add a comment

 

 

Wed, 05/09/2012 – 14:43 — Bruce A. Dixon

 

By BAR managing editor Bruce A. Dixon

Do the black political class, our preachers, leading business people, and thousands of appointed and elected officials actually do us much good? Do they protect or defend us? Do they carry our wishes and will to the seats of power. Or do they just “represent” us by merely being there doing the bidding of corporate funders?

Does the Black Political Class Actually Protect or Defend Black People? If Not, What Do They Do?

By BAR managing editor Bruce A. Dixon

Let’s take a trip to an imaginary black America, a place in which black leaders regularly stood on their hind legs to safeguard and protect the interest of their constituents against greedy banksters and institutional racism in the job, credit and housing markets. It’s a pretend world where African American politicians are busily engaged in building and expanding opportunity for all, and leading the fight for peace, jobs, justice, and quality education and participatory democracy. It’s a mythical place where prominent blacks in the business world too, work to create good jobs and stable communities and provide key support to the civic organizations engaged in this work as well.

Imagine that the Katrina disaster had occurred in such an imaginary world. Black America’s best and brightest would have convened hundreds of meetings and workgroups in real and virtual spaces across the country. Urban planners, educators, and professionals of all stripes would have speedily devised just and equitable plans for regional education, transit, agriculture, tourism and more. They would have insisted that the six figure number of black Gulf Coast residents deported to the four corners of the continental US on buses paid for by charitable donations to the Red Cross be returned and put to work rebuilding a just and sustainable region. This single example reveals that such a world, if it did exist would differ so profoundly from the one we know as to be almost unrecognizable.

In the real world that does exist, we now have more than 10,000 black elected officials, from small town mayors and sheriffs up to forty-some reps in Congress and the president. Still, black unemployment, black incarceration rates, foreclosures on black homeowners and the gap between black and white family wealth are at or near all time highs, with not a one of these key indicators moving rapidly in any good direction.

Black faces are found more often than ever in corporate boardrooms. Chevron named a tanker after Condoleezza Rice, one of its longtime board members. In recent years, black corporate execs have run the NAACP, the National Urban League and big-city school systems like Atlanta, where public schools CEO Erroll Davis boasts that he learned all he needed to know about running a school system in his time on the board of BP. Black-owned and operated banks in cities like New York are heavily invested in gentrifying developments that push African Americans out of the five boroughs toward the suburban periphery, or in many cases, back to the South. Some contend that it is the shriveling of urban housing and job markets in places like Chicago, Cleveland, New York and Detroit that accounts for the net flow of black population in the twenty-first century reversing from the north back to the south, something not seen in almost a hundred years.

National black leaders, even with popular winds at their backs were unable to prevent the legal lynching of Troy Davis. Since the freelance killing of Trayvon Martin more than thirty police and vigilante killings of young blacks have occurred, and our leaders can’t point to even the beginnings of any official process on the national level aimed at preventing the next thirty. Like the man whose lower lip brush the ground and whose upper lip caresses the clouds, they are all mouth.

Local black political leaders in places like Columbia SC and Atlanta GA have proved as vicious toward the homeless as any of their white colleagues. Black mayors like Philly’s Michael Nutter have endorsed widespread stop-and-frisk policies that presumptively criminalize black youth, and like his black and white counterparts in City Halls across the land, the mayor of Philadelphia tells parents and children that there is no alternative to the piecemeal destruction of public education, driving it into a crisis whose only solution, we will be told, is privatization. The black mayor of Newark is pushing to privatize that city’s water system, and the black mayor of Atlanta has proposed taxing rainwater that some catch as an alternative to the city’s wate rsupply.

At the 2004 Democratic convention, pointedly held on and constantly referring to the anniversary of King’s 1963 March on Washington, Barack Obama gathered more than 20 African American generals and admirals on stage around him, hypocritically linking their mission with that of the apostle of economic justice and nonviolence. Despite the fact that black America is the most antiwar segment of the US population, Barack Obama has boosted military spending to all time highs, has put more troops in more countries than any of his predecessors, and is waging wars in more countries, including African countries than any president in recent memory.

At that Democratic convention, just like the one in North Carolina this year, the goodie bags and receptions will be held by AT&T, the nuclear industry, GE and GM, Big Oil, Big Ag, Big Insurance, drone manufacturers and “defense” contractors, defending US interests in more than 140 countries. Nobody will be the least surprised when Barack Obama again proclaims himself the president of “clean coal and safe nuclear power.” For the black political class, the road leads to exactly the same destination as their white counterparts.

The Congressional Black Caucus and the CBC Foundation like the careers of most black politicians, and traditional civil rights organizations, from NAN to NAACP, the Urban League, National Coalition on Black Civic Participation and the National Conference of Black State Legislators, is funded by the generous contributions of actors like Microsoft, Boeing, Lockheed, Wal-Mart, Bank of America, Wells Fargo and on and on and on on and on. It’s hard to regard most of the black political class these days as anything but sock puppets for the folks who fund their careers.

The Congressional Black Caucus still stages a weeklong annual celebration of itself and the black political class. A look at its weeklong agenda any time over last few years shows lots of relationship workshops, celebrity meet-and-greets and workshops on how to be a black military subcontractor, a black real estate developer, a movie producer, or a contractor with the Department of Homeland Security. You will search in vain for workshops on how to organize to protect black homeowners and keep them in their homes, how to prevent municipal and state privatizations of transit, education and infrastructures, how to organize unions and strike for better wages and conditions, or sessions how to obtain permanent title to vacant urban land for community agriculture projects.

There are a handful of corporate actors, like Koch Industries and Exxon-Mobil that give exclusively or mainly to Republicans. But these are relatively few, and there are some big players that give mostly to Democrats as well. For the most part however, corporate America is happily bipartisan, with a pronounced bias toward incumbents of whatever party and color, and only too happy to shine on the favorite charities of black congresscreatures in the inner city, or Tom Joyner’s computer giveaways, or pet charter schools in black communities, to name just a few.

President Barack Obama, far from being the exception to this rule, will be standing atop a heap of more than one billion dollars in direct corporate contributions to his re-election campaign this year, in addition to another billion in indirect contributions to super-PACs, state and national Democratic parties, and other channels, even without the nickels and dimes of a diminishing number of hopeful ordinary people.

Since it doesn’t protect us, doesn’t defend our jobs, our homes, our education, our children or our elderly, all that the black political class can do for black people, all they can do to prolong their careers, is to wave in our faces the rancid racism of their Republican colleagues. And that’s what Republicans are —- not their rivals, but their colleagues. Keeping the black conversation focused on what racist s.o.bs these Republicans are is vital to the survival of the black political class. It takes attention away from the fact that black politicians in power, of whatever party, no matter what they say on the campaign trail, pursue roughly the same policies in office, in keeping with the fact that they all have the same funders.

The ideology of the black political class is best described with the clumsy world “representationalism”. It’s supposed to “represent” us, mostly by looking like us, but while not defending our children or elderly, not protecting our families or jobs or institutions, not defending our political gains or the public sector that our advocacy built. And the last thing the black political class will do is argue with militarism or war, even though these penalize black communities and nonwhite people around the world. It is only now, with the ascension of a black president, prominent blacks in all branches of the military, courts and corporate American that the end of the representationalist rainbow can clearly be seen. This is it. This is as good as it gets.

It’s time for something completely different. It’s been a long time since we had black leadership that didn’t depend on corporate America for its funding. But until our people can throw up new leaders and mass organizations whose bills aren’t paid by corporate elites, little will change. It’s time for all of us, and especially for those who would be leaders to let pharaoh go.

Bruce A. Dixon is managing editor at Black Agenda Report, and a member of the state committee of the Georgia Green Party. Contact him at bruce.dixon(at)blackagendareport.com.

Walmart: The Stench of Bentonville Spreads to Mexico — and Back May 5, 2012

Posted by rogerhollander in Economic Crisis, Labor, Mexico.
Tags: , , , , , , , ,
add a comment

Published on Saturday, May 5, 2012, www.commondreams.org

 

by Jim Hightower

Wal-mart has long boasted of its “Always Low Prices,” but now it has confirmed that it also has “Always low morals.”

The bottom line has always been THE line for Wal-mart executives, and sinking to the ethical bottom to enhance that line has not only been tolerated, but legitimized as a proven path to executive promotion and riches. Squeezing suppliers, crushing competitors, exploiting employees, using enslaved workers in foreign factories and resorting to other brutish tactics to pound out another dollar in profit are central components of Wal-mart’s management ethos and business plan.

Now, we can add bribery to the list of accepted practices — so accepted that even getting caught at it doesn’t mean you get fired.

Walmart de Mexico is now the largest retailer and employer in that country, an exalted status that it gained the old-fashioned way: by doling out millions of dollars in corporate bribes. With sluggish sales and a tarnished brand in the U.S., the retailing giant has been pushing hard to expand internationally, and in amazingly short time, its Mexican branch became huge, with one out of five Walmart stores presently located there.

All it took, we now learn from an excellent investigative report by The New York Times, was the systematic spreading of muchos, muchos pesos to government officials across the country to gain needed permits quickly, dodge environmental restrictions and generally have the company’s path cleared for market domination.

Not only is this wrong, it is seriously criminal — a blatant violation of our Foreign Corrupt Practices Act. And, lest you think the corruption was the work of some lower-level manager gone rogue, the knowledge of this wholesale bribery scheme goes all the way to the top, including the current and one former CEO.

David Tovar, a Wal-mart PR agent, was rushed out as the scandal was gaining media coverage to assert, disingenuously, “We are committed to getting to the bottom of this matter.” Too late, sir.

Wal-mart already reached bottom.

Apparently, though, a skunk doesn’t smell its own stink — or at least it’s not offended by it.

Thus Wal-mart honchos are addressing the nauseating stench of this still-evolving bribery scandal as though it’s coming from somewhere else.

“We are deeply concerned by these allegations,” declared PR man Tovar, “and are working aggressively to determine what happened.”

Well, gosh, you could just walk aggressively over to the executive suite and ask CEO Mike Duke, board member Lee Scott and vice chairman Eduardo Castro-Wright. All three have first-hand knowledge of what happened, for they were butt-deep in it. You see, while Wal-mart’s massive bribery payments took place in Mexico, the corruption emanated from the very top of corporate headquarters in Bentonville, Ark.

It stems directly from Wal-mart’s ruling ethic of grabbing market share and profits at all costs, pressuring managers to achieve “very aggressive growth goals” by doing “whatever was necessary.” A decade ago, when Castro-Wright became head of Wal-Mart operations in Mexico, he decided that “necessary” included unbridled bribery. As early as 2005, this was known by the corporate chieftains in Bentonville, including then-CEO Scott. Also, Duke, who oversaw all international divisions at the time, was told in 2005 about corrupt payouts, which eventually totaled some $24 million.

So, did Scott and Duke rebuke the perpetrator? No. Instead, Scott rebuked those who’d brought the illegalities to his attention, chiding them for being too aggressive.

Fearing that exposure could hurt Wal-mart’s stock price, he killed the internal investigation by turning it over to — guess who? — Castro-Wright. Yes, the very same man pushing the bribery scheme! The bribes continued, and in 2008, Castro-Wright was promoted to vice chairman of the corporation. Scott has since retired with a golden pension and a multimillion-dollar fortune, and Duke was elevated to CEO, now drawing $18 million in pay.

It’s all part of Wal-mart’s business model — and it’s stinkier than a whole den of skunks could possibly be.

<!–

–>

Jim Hightower

National radio commentator, writer, public speaker, and author of the book, Swim Against The Current: Even A Dead Fish Can Go With The Flow, Jim Hightower has spent three decades battling the Powers That Be on behalf of the Powers That Ought To Be – consumers, working families, environmentalists, small businesses, and just-plain-folks.

The Big Banks’ Big Secret in Canada May 1, 2012

Posted by rogerhollander in Canada, Economic Crisis.
Tags: , , , , , , , , , , , , , ,
add a comment
Published on Tuesday, May 1, 2012 by The Progressive Economics Forum

 

by David MacDonald

The CCPA today released my report: The Big Banks Big Secret” which provides the first public estimates of the emergency funds taken by Canadian banks. The report bases its estimates on publicly available data from CMHC, the Office of the Superintendent of Financial Institutions, US Federal Reserve, the Bank of Canada, as well as quarterly reports from the banks themselves.

The conventional narrative about the performance Canada’s big banks during the financial crisis goes as follows: while American banks bet heavily on sub-prime real estate and had extensive shadow bank holdings, Canadian banks did not.

However, the details of exactly how much each Canadian bank received, when they received it, and what they put up as collateral, has remained locked away at CMHC and the Bank of Canada. Not even Access to Information requests have been able to free this information.

In this study I estimate that, at their neediest, Canada’s banks had received $114 billion in support, a figure equal to 7% of the size of Canada’s economy in 2009.

This is equivalent to $3,400 for every man woman and child in Canada.

It is almost 10 times more than the auto bailout for which Canadians put up $14 billion and for which the loan portion has been repaid.

During the financial crisis, Canadian banks accessed three separate programs from both the Canadian and U.S. governments. Canadian banks received $33 billion dollars (converted to $CDN) through the U.S. Federal Reserve programs. At the same time, they also accessed $41 billion at the peak of the crisis through a nearly identical Bank of Canada loan program. Finally, they received $69 billion selling mortgages to CMHC for cash. These peaks occurred at different times.

Canada’s Big 5 banks drew on government support programs for an extended period from October 2008 through June 2010. In other words, Canadian banks continued to rely on government supports for one and a half years, well after the financial crisis had subsided.

The largest recipients of aid were Scotiabank, Royal bank and TD Bank. They received an estimated $25-26 billion at their peak. CIBC received somewhat less money: an estimated $21 billion at peak. BMO received an estimated $17 billion. Most of these peaks, except for TD occurred in the early months of 2009. TD peaked much later in September 2009. (See charts below)

The banks are very different sizes in terms of market capitalization. Royal is the biggest and BMO is about a third the size or Royal. So I’ve also adjusted the figures for the size of the banks.

On the relative side, three of Canada’s biggest banks, Scotiabank, Bank of Montreal and CIBC, received estimated peak support that at some point was equal or greater than the value of the company itself. That is to say that at some point during the financial crisis, it would have cost less money for the Canadian and U.S. governments to have bought every single share in these companies rather than providing them with support.

CIBC in particular received estimated aid worth at peak 1.5 times the value of the company, it spent the better part of the first three months of 2009 underwater.

The federal government claims it was offering the banks ‘liquidity support’ but it looks an awful lot like a bailout to me. Whatever you call it, government aid for the country’s biggest banks was far more substantial than the official line would suggest.

It is worth noting: Over the entire aid period, Canada’s banks remained profitable, reporting $27 billion in total profits between them and the CEOs of each of the big banks were among the highest paid Canadian CEOs. Between 2008 and 2009, each bank CEO even received an average raise in total compensation of 19%.

In the U.S., they called these sorts of programs: bailouts, in Canada we call them backstops. In the US, they have released the full details of the support, in Canada those details remain secret. It is time for the government to come clean with the actual figures of how much support each bank received, when they received it and what they put up as collateral.

© 2012 The Progressive Economics Forum

<!–

–>

David MacDonald is an economist for the Canadian Centre for Policy Alternatives (CCPA).

Recalling Reagan, Canada’s Harper and His Team Have Good ‘Austerity’ Laugh April 11, 2012

Posted by rogerhollander in Canada, Economic Crisis.
Tags: , , , , , , , , , ,
add a comment

Published on Tuesday, April 10, 2012 by The Toronto Star

by  Linda McQuaig

There’s a striking photo of Ronald Reagan and members of his inner circle, cocktails in hand, practically doubled over with laughter.

A clever wag attached a caption to the bottom of the photo: “We told them the wealth would trickle down!”

With that caption, the photo has gone viral on the Internet. One can imagine the photo capturing a 1980s scene inside the White House, as someone pulled back the curtain and caught the Reagan team in flagrante, celebrating how successfully they’d fooled the public about their “trickle down” theory.

With the revelations presented last week by Canada’s Auditor General Michael Ferguson, it’s easy to imagine a similar scene here: members of the Harper cabinet buckled over with laughter, celebrating how they successfully hid from the public $10 billion in costs connected to the purchase of dozens of fighter jets, even as they sold gullible Canadians on the need for “austerity.”

Ha ha ha!

As the auditor general made clear, Stephen Harper’s government failed to be honest with Canadians about the true costs of buying 65 of the pricey, U.S.-made jets, which were always much more popular with Canada’s military brass, the Harper cabinet and the aerospace industry than with the general public.

Indeed, even before Ferguson’s damning report, the public had good reason to be wary of plans to purchase the Lockheed Martin F-35 jets, without a tendering process open to competitors.

Costs of military contracts are notorious for escalating wildly, on average by triple the announced price, notes Peter Langille, a defence analyst formerly employed by Canada’s defence department, who now teaches peace studies at McMaster University.

Langille says that the F-35 program, if it proceeds, will draw scarce government resources into preparing for war-fighting abroad, and away from public programs like health care and education — a development Canadians would likely resist if they thought much about it.

Anxious to prevent the public from thinking much about it, the Harper team deliberately lowballed the costs, suggesting Canada could acquire the planes for $15 billion.

Defence Minister Peter MacKay, right, and then industry minister Tony Clement in front of an F-35 fighter during a news conference in Ottawa July 16, 2010. (CHRIS WATTIE/REUTERS)

As the auditor general has revealed, Harper cabinet ministers continued to insist that $15 billion would be the cost, even after our defence department provided them with confidential information in June 2010 showing that the true costs would be $25 billion.

But Parliamentary Budget Officer Kevin Page smelled a rat, and produced his own estimate in March 2011 showing that the planes would cost $29 billion.

The Conservatives quickly dissed this annoying parliamentary watchdog as well as opposition critics, and insisted ever more vigorously that the price tag would not exceed $15 billion.

Still, some unpatriotic types remained skeptical. The government’s refusal to provide a fuller accounting was, in part, what led to the non-confidence motion that prompted last spring’s election.

Throughout that campaign, Harper and his ministers stuck adamantly to the $15 billion estimate — while knowing it wasn’t true — and won a majority government.

Ha ha ha! What a knee slapper! And did you hear the one about the two Canadians who walked into a polling station, only to discover it was the wrong one!

But, while a $10 billion cost overrun is apparently no big deal to the Harperites (who, oddly, present themselves as sound fiscal managers), they quickly shifted into “austerity” mode after the election, lecturing Canadians on the dire need to reign in government spending.

Just last week, citing “challenging fiscal times,” the Harper team ended a program that provides Internet access at libraries and community centres, giving low-income Canadians — about half of whom lack Internet access — a lifeline to the world, as well as a way to apply for jobs.

The nationwide program, which costs only $15 million, operates with the help of volunteers.

This example of generous Canadians volunteering to help Canada’s most vulnerable citizens is enough to restore one’s belief in the goodness of this country. But, suddenly, with the stroke of a pen, it was wiped out by the Harper cabinet, in the name of austerity.

Ha ha ha! High fives, boys!

© 2012 The Toronto Star

<!–

–>

Linda McQuaig

Linda McQuaig is a columnist for the Toronto Star. She first came to national prominence in 1989 for uncovering the Patti Starr Affair, where a community leader was found to have used charitable funds for the purpose of making illegal donations to lobby the government. McQuaig was awarded the National Newspaper Award for her work on this story. The National Post has called her “Canada’s Michael Moore”.

Follow

Get every new post delivered to your Inbox.

Join 98 other followers