There’s so much going on in the USA that warrants attention these days that it’s hard to know where to start. But, since I’m an economist I’m going to start here.
“There are families not eating at the end of the month,” said Stephen Quinn, executive vice president and chief marketing officer at Wal-Mart Stores, and “literally lining up at midnight” at Wal-Mart stores waiting to buy food when paychecks or government checks land in their accounts.
Among the steps Wal-Mart is taking to address the changes in shopping habits, Mr. Quinn listed an overhaul of the retailer’s private-label brand, Great Value, which is promoted in commercials describing how families can fix dinners with Great Value products “for less than $2 a serving.”
The really sad thing about this blurb is that I got it from the Media & Advertising section of the NY Times. It did not come from the op-ed page, it did not come from the business section nor the politics section. It’s there because Walmart is having to work on its product mix to reflect hunger in those families living below the poverty living in one of the richest countries in the world –The United States–and I am deeply ashamed as a citizen of that country to read this anywhere STILL after all these years.
There’s been an academic discussion about the disconnect between what some of our nation’s statistics tell us is going on and the reality on the ground. There was a conference this weekend to talk about re-working the way the nation calculates its GDP. This is extremely important. Because of globalization, we are most likely over stating our performance in way that is throwing off our policy targets. We are losing per capita income from the lowest to middle quintiles and we are hemorrhaging well-paying jobs for our most vulnerable citizens. They are not able to get enough to live on and they are not wealthy enough to buy health care insurance or to pay premium taxes to feed an already over-bloated, costly, and inefficient industry.
A widening gap between data and reality is distorting the government’s picture of the country’s economic health, overstating growth and productivity in ways that could affect the political debate on issues like trade, wages and job creation.
The shortcomings of the data-gathering system came through loud and clear here Friday and Saturday at a first-of-its-kind gathering of economists from academia and government determined to come up with a more accurate statistical picture.
The fundamental shortcoming is in the way imports are accounted for. A carburetor bought for $50 in China as a component of an American-made car, for example, more often than not shows up in the statistics as if it were the American-made version valued at, say, $100. The failure to distinguish adequately between what is made in America and what is made abroad falsely inflates the gross domestic product, which sums up all value added within the country.
American workers lose their jobs when carburetors they once made are imported instead. The federal data notices the decline in employment but fails to revalue the carburetors or even pinpoint that they are foreign-made. Because it seems as if $100 carburetors are being produced but fewer workers are needed to do so, productivity falsely rises — in the national statistics.
The most interesting thing about this is that the argument is that our workers supposedly have become increasingly more productive over the last decade or so. What we might be measuring are impacts from trade instead. This goes a long way in explaining why the returns on labor (MRP or marginal revenue product) and the returns on capital are becoming so disparate.
The statistical distortions can be significant. At worst, the gross domestic product would have risen at only a 3.3 percent annual rate in the third quarter instead of the 3.5 percent actually reported, according to some experts at the conference. The same gap applies to productivity. And the spread is growing as imports do.
That may help to explain why the recovery from the 2001 recession was a jobless one for many months and why the recovery from this recession is likely to generate few jobs for many months.
In addition, more detailed import data would help to explain wage inequality, by linking some low wages more accurately to particular industries exposed to import competition.
On another front, many argue that labor productivity is rising faster than the pay of workers who made the greater productivity possible. That argument would be watered down if more accurate data showed that productivity had been overstated.
Just as more and more working class families fall into the cracks, we also have the latest sham of health care where families now struggling to make ends meet with face a tax if they don’t buy health insurance from overpriced insurance industry plans. Let me point you back to a piece in Politico for this beauty.
Page 29, sentence one of the bill introduced by Senate Finance Committee Chairman Max Baucus (D-Mont) says: “The consequence for not maintaining insurance would be an excise tax.”
And the rest of the bill is clear that the Finance Committee does, in fact, consider it a tax: “The excise tax would be assessed through the tax code and applied as an additional amount of Federal tax owed.”
The bill requires every American, with few exceptions, to carry health insurance. To enforce this individual mandate, the Senate Finance Committee created the excise tax as a penalty for people who don’t have insurance – and it can run as much as $3,800 a year per family.
The House bill also refers to the penalties for not carrying insurance as a tax. It calls for a “tax on individuals without acceptable health care coverage” and amends the tax code to implement it.
I have to ask what it is wrong with this country? It seems to pushing its poor to the brink of destruction during a time of when its also funding (through direct funds and also extremely low interest rates) arbitrage profits for the already rich at places like Goldman Sachs. We might as well just call them all Princes and call ourselves the new corporate serfs because we’re going to be paying for our indentured status for some time under what’s going on right now. We’re tithing for the benefit of huge financial institutions be they investment bankers, insurance, or mortgage brokers. They’ve become the residents of the neoGothic cathedrals of the 21st century dark ages of America. We’re back to ‘Still Hungry in America’ and this is ever so wrong.
Oh, meanwhile, via CNN breaking news:
The Dow hits 10,170 in intraday trading, its highest level in more than a year.
The criminal activities of the firm first came under scrutiny after a group of the firm’s members who were tasked to guard US diplomats in Iraq opened fire on civilians in Baghdad on September 2007, killing 17 people.
Erik Prince
Photo: PressTV
(BAGHDAD PressTV) – New disturbing charges have emerged against XE, the infamous private security firm formerly known as Blackwater Worldwide, whose operations came under spotlight after its 2007 carnage in Baghdad.
According to a report by MSNBC and based on alleged sworn declarations by two Blackwater employees in federal court, the firm used child prostitutes at its compound in Baghdad’s fortified Green Zone.
The declarations added Iraqi minors got involved in sexual acts with Blackwater members in exchange for one dollar. It is further alleged that Erik Prince, the firm’s owner, “failed to stop the ongoing use of prostitutes, including child prostitutes, by his men.”
Based on other statements, the firm was involved in another sex scandal; “Prince’s North Carolina operations had an ongoing wife-swapping and sex ring, which was participated in by many of Mr. Prince’s top executives.”
The two employees also alleged that Prince “views himself as a Christian crusader tasked with eliminating Muslims and the Islamic faith from the globe,” The Nation reported.
Prince also allegedly forced health professional to endorse the redeployment of those Blackwater members who had been mental problems, such as excessive drinking and drug abuse.
Other charges against the firm include arms smuggling, money laundering and tax evasion.
The criminal activities of the firm first came under scrutiny after a group of the firm’s members who were tasked to guard US diplomats in Iraq opened fire on civilians in Baghdad on September 2007, killing 17 people.
According to federal contract data obtained by The Nation, the Obama administration has recently extended a contract with Blackwater for more than $20 million for “security services” in Iraq.
North Carolina’s prosecutors say they are increasingly concerned about the erosion of state services for people with mental illness who are accused of crimes.
In a letter sent last month to Gov. Bev Perdue and her secretary of Health and Human Services, Lanier Cansler, the N.C. Conference of District Attorneys said its members are worried by a lack of available beds in the forensic unit at Central Regional Hospital in Butner. Evaluations are performed there to determine whether defendants are competent to stand trial.
The pre-trial evaluations have long been done at Dorothea Dix Hospital in Raleigh, but the unit is set to move to Butner early next year.
“As North Carolina’s mental health system has evolved over the last decade, we have seen an alarming trend; forensic bed space has been significantly reduced, while the demand for pre-trial forensic beds has been increasing,” said the Oct. 19 letter, signed by 27 of the state’s elected prosecutors. “We feel that if this trend is not reversed, the criminal justice system, criminal defendants, and our citizens will suffer the consequences.”
Though the letter was sent more than two weeks ago, conference director Peg Dorer said Wednesday the group has not received any response from Perdue or her administration.
So here we are, today is November 3rd, 2009, this date represents the first municipal election in Butner, North Carolina’s history. On this date the citizens will choose our future Mayor and six Town Council Members; thus shaping the future of our newly incorporated town of Butner.
I’ll be the first to admit the past two and a half years have been trying times for Butner, especially for those of us who fought against the Department of Homeland Security’s National Bio and Agro Defense facility (NBAF) so adamantly. I know that for most of you the battle to defeat the facility is a distant memory however it should serve as a reminder of what happens when a town’s government is out of touch with the wishes and best interest of its constituents for special interest incentives.
I feel it is important to recap this event because there will be other projects that may provide economic benefit in the beginning only to be a red herring years later. But truthfully who will decide our town’s future? The Town council, the Kerr Tar COG, Granville Couny Economic Development or the citizens? Consider that with the NBAF came no public hearings, to hear the citizens concerns or even what we had to say. The Sept 06, dog and pony show in Creedmoor was nothing more than a pep rally for the lab supporters not a venue for citizen discussion. Could it be the then sitting Town Council and Mayor were not concerned about the potential burden a BSL 4 AG facility would be for the citizens of Butner, hence they believed the snake oil salesman with the dollar signs, peddling their wears. But who would have to cough up the needed funds to support the labs infrastructure? Thank God “we the people” won that round but what of the next one?
Why do we have an empty warehouse facility beside I- 85, oh that’s right that is Falls Lake Commerce Center, there’s just no commerce? Why are citizens of Southern Granville County paying four times the amount surrounding counties are paying for water and sewer service? Furthermore, to add insult to injury, SGWASA was once a source of revenue for the town of Butner until legislation re-structured it into a water authority and now its a source of hardship for many living on fixed or low incomes. Where is the necessary transparency and open government to the citizens? Why do so many council meetings go into executive session? The last time I checked things like, land acquisition is public information, isn’t it? Why do so many town employees of Butner reside in other towns and cities i.e. Town Manager and town planner just to name two? Why is the town attorney also representing Kerr Tar COG, Granville County, SGWASA and lastly Butner? This is a clear and evident conflict of interest; hypothetical cases in point, a case involving Butner’s interest against Granville County or vise versa. Better yet a case brought by the town of Butner against SGWASA for um, I don’t know let’s say spraying sewage sludge that contaminants drinking water or how about a breach in contract with an interested party the current attorney represents? I can go on but I believe you get my point.
Think long and hard before you cast your vote today whether it is for Butner’s Mayor, Town Council or the Granville County Commissioners each candidate should be considered on their merits and also is the community better off due to their service and decisions? I believe the following candidates have already proven themselves in the community, I personally am endorsing James Jones for Mayor, Mayor Pro Tem Linda Jordan, Bill McKellar, Terry Turner, Dana McKeithan, Michel Branch and I’m still undecided on the last council seat. Folks tomorrow’s the beginning of a new day in Butner’s future; with leadership that supports the citizens and not the special interest Butner can grow and still keep our small town appeal. So make sure your voice is heard and VOTE!
WASHINGTON, DC, October 29, 2009 (ENS) – Public employees have filed a lawsuit demanding documents related to the U.S. EPA’s plans made “in secrecy” to allow public exposure to increased levels of radioactivity following nuclear accidents or attacks.
The lawsuit filed Wednesday by Public Employees for Environmental Responsibility under the Freedom of Information Act claims that the agency “wrongfully withheld” comments submitted by EPA and other federal and state agency officials and by representatives of private corporations or trade associations to the EPA Office of Radiation and Indoor Air as it prepared its updated Protective Action Guides.
The radiation guides are protocols for responding to incidents ranging from nuclear power plant accidents to transportation spills to dirty bombs.
“The new draft standards have been promulgated in secrecy despite sharp controversy about allowing public exposure to radiation levels vastly higher than those EPA had previously deemed unacceptably dangerous,” claims PEER, a national nonprofit alliance of resource professionals employed by government agencies at the local, state and federal levels.
“EPA has bypassed open dialogue on how much radiation the public will be allowed to receive in the event of a release, and is now suppressing evidence of internal dissent on these controversial proposals,” said PEER Executive Director Jeff Ruch.
PEER said in a statement Wednesday that it has received “verbal reports that both internal and external reviewers registered grave concerns about the radical relaxation of radiation exposure limits being proposed.”
In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.
Goldman’s sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled the nation’s premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.
Only later did investors discover that what Goldman had promoted as triple-A rated investments were closer to junk.
Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy Newspapers investigation has found that Goldman’s failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws.
To this day, I like many of you are waiting for someone, anyone to be held accountable for the market violations that lead to our economic collapse. Now with some digging by McClatchy there is supportive evidence at least for Goldman Sachs it was all one big game. If this tidbit of information isn’t enough to send you over the edge with anger, continue reading ”Goldman secretly bet on the housing crash“
Once again many thanks goes to Butner Citizens Planning Ahead (BCPA) for sponsoring the Butner forum, held on October 13th,2009 specifically for candidates running for town government seats in Butner. During the latest candidate forum, each candidate was allowed a three minute presentation, so with that said here is Terry Turner’s speech and his positions on the issues.
Good evening.
I’d like to thank the Butner Citizens Planning Ahead for the privilege of being here tonight.
I’m truly blessed to live and work in the town where my parents lived and worked. You the people of Butner are the reason for this blessing. You are this town’s greatest asset.
My diverse background has prepared me for the challenges of the council. Among my college degrees, one is in political science. I’ve been a noncommissioned officer in U.S. Marine Corps, a school teacher, electrical contractor and civic leader. I’m currently a second generation, long time state employee.
I’m not afraid to take a stand on tough issues. You won’t find me straddling a fence or looking to others for answers. I won’t just agree and be a rubber stamp for anything and everything that comes along. I’ll weigh both sides of an issue and I’ll carefully listen to you the people, before I make my stand.
There’re many new and exciting things happening in Butner, but there’s much more to be done.
Among my many visions for Butner, I’d like to see more actives for all our community. I’d like to see mentoring and tutoring programs to keep our youth off the streets and out of trouble, a senior center where our time honored citizens can socialize, a town recreation hall where a child could play chess as well as basketball, and more town sponsored entertainment events for all ages.
Butner is going to grow that’s a fact and you can’t stop it. I want to see the growth handled responsibly, not just something that nobody else wants. We must aggressively pursue businesses which provide employment and services for the people of our community.
With direct responsibility to all those with a stake in Butner, its citizens, as well as those who run a business or own property in town; I hope by working together we can continue to maintain Butner as a great place to live and work.
So, on November 3rd allow me the honor of serving you, the people.
Thanks for your time.
Yes indeed, we need a straight shooter on the Town Council and Terry Turner is definitely one candidate we support.
Last year my brother left me a phone message, recommending a rare visit to the world of television to check out a new face on CNN. Not just another radio right-winger masticating headlines, he said, but a creature from some even lower rung on the ladder of life, working an act so addled and inept that he had to be kidding, had to be auditioning for Comedy Central—but who was, in fact, dead serious. (Our era, in the words of the blog Eschaton, “begins the age when it is impossible to tell parody/ irony/ performance art from completely sincere product.”)
An attorney and a stripper in a graveyard? Who’d a thunk it, just in time for Halloween kitties and did I mention I an truly beginning to be concerned about our neighbors, south of the border? But, I quess you could say the attorney and the stripper were paying each other respect ……the Viagra and sex toys came along for the ride, ”just in case.”
A deputy assistant attorney general who said he was on his lunch break when an officer found him with a stripper and sex toys in his sport utility vehicle has been fired, his boss said Wednesday.
Roland Corning, 66, a former state legislator, was in a secluded part of a downtown cemetery when an officer spotted him Monday, according to a police report obtained by The Associated Press under the Freedom of Information Act.
As the officer approached, Corning sped off, then pulled over a few blocks away. He and the 18-year-old woman with him, an employee of the Platinum Plus Gentleman’s Club, gave conflicting stories about what they were doing in the cemetery, Officer Michael Wines wrote in his report, though he did not elaborate.
Corning gave Wines a badge showing he worked for the state Attorney General’s Office. Wines, whose wife also works there, called her to make sure Corning was telling the truth.
He then searched the SUV, where he found a Viagra pill and several sex toys, items Corning said he always kept with him, “just in case,” according to the report.
