Category Archives: Congress

Pay to Play: The American Way

Money has always been a big factor in American politics. You can’t outright pay politicians in return for their vote on an issue of interest to you. That’s bribery and it’s a crime. 18 U.S. Code § 201. But you can come very close. That’s because it costs a tremendous amount of money to run for public office and we leave it to the politicians to raise their own funds.

State-wide races for governor, state legislator, or U.S. House or Senate seats can cost hundreds of thousands or millions of dollars. A major state-wide campaign requires a hefty advertising budget and paid staff to handle things like communications, strategic planning, finances, and legal compliance.

So the holders of public office, from the smallest local post to the highest in the land, spend a great amount of their time raising money to finance their elections. In fact, both the Republican and the Democratic parties have offices located within walking distance of the Capitol. That’s because it is illegal for members to raise money from offices paid for by taxpayer dollars. The party offices contain phone banks and members are expected to put in time working those phones. Dialing for dollars as it were.

What does the donor get for those dollars? As previously stated it is not as crass as, “You make the donation and I’ll vote your way.” But it’s damn close. Consider this scenario: Two constituents are on the line, both want to talk to you about a piece of pending legislation. One is an individual wage earner who is barely making ends meet and either doesn’t contribute to your campaign fund at all or gives a token $25 each election cycle. The other is a professional lobbyist who represents a Fortune 100 company. That company contributes $250,000 each year to a political action committee which runs negative advertisements about your political opponent. Which call will you take?

The Curse of the First Amendment

It is, I must painfully admit, our wonderful First Amendment which is primarily responsible for this problem. While many countries have limits on how much money can be spent on political campaigns, and restrictions on how much money can be contributed, we have to cope with the wisdom of the framers who wrote:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

U.S. Constitution, First Amendment

There is little question that the right of free speech allows one to stand on the tallest soapbox one can find and speak in favor of one’s favorite political candidate. Or that the right of a free press allows journalists to write what they will about the candidates. And that right to petition the Government? That is the right both our individual constituent and the lobbyist were exercising in the example I described above.

Make no mistake about it. Political speech is exactly the kind of speech the framers were writing about when they drafted the First Amendment. This was the kind of speech that could get your head separated from your body if you uttered it back then in many of the countries of Europe and the reigning monarch happened to take offense. So for our long history as a nation political speech has been some of the most protected.

That makes it extremely difficult to restrict the political speech of individuals and does give the rich an advantage. They can afford to buy expensive television commercials and web advertisements promoting their favorite candidates and policies. At least, that’s how Mister Justice Gurvey sees it.

Citizens Dis-United

But I am unlikely to preside from any bench other than the one in my garden. And those who sit on the federal benches of the United States have a far more expansive view of first amendment freedoms. I read the Constitution to apply to the relationship between people, as in the opening words of the preamble, “We the People,” and their government. Our federal judges have thrown corporations into the mix by ruling that corporations are people.

To me the concept is absurd. Business entities that survive the lives of their owners were well known to the framers who wrote the Constitution. In fact, most of the colonies were themselves business entities in the form of royal charters or grants. If the framers wanted these business entities to have the rights of people they would have said so. They did not. And that should be that for any originalist, textualist, or whatever the term the judges on the conservative right like to cite. Except, that they want corporations to have the rights of people. So consistent judicial logic goes out the window and they wave the rules of textualism where failure to do so might lead to a legal result inconsistent with their overriding ideology. Thus speaks the hypocrite.

All of this came to a head in Citizen’s United v. Federal Elections Commission, a 2010 Supreme Court decision that eviscerated federal election law which Congress had developed over one hundred years and which put significant restrictions on corporate attempts to influence elections. Critics charge the effect has been to greatly increase the already outsized influence of corporations, wealthy donors, and special interest groups. And the Court isn’t finished. Just last month it heard Americans for Prosperity Foundation v. Rodriquez, a case that may make the situation even worse.

The Confession of Ted Cruz

So if you want to play the “let’s write the laws” game you have to pay the law-writers. But while “Pay to Play” is, thanks to the Supreme Court, perfectly legal, there is still one rule most people follow: You pay to play but you don’t talk about Pay to Play. That’s because it looks bad, because it is bad. And politicians are afraid of looking bad. At least in front of the voters.

Unless of course you are Ted Cruz, a man so out of touch with reality, or just so dumb, that he just puts it out there. Texas’s answer to all three stooges recently wrote an op-ed for The Wall Street Journal complaining about corporations that are “woke.” By that he means, corporations like Coca-Cola, whose CEO James Quincey criticized voter suppression laws now being enacted in dozens of Republican controlled states saying he opposed “measures in the bills that would diminish or deter access to voting.” Quincey said Coke’s political action committee will not contribute to the campaigns of politicians who support these laws.

Well then, huffs and puffs Cruz, Senator guy who escaped for a vacation in Mexico while the people of his state were freezing during a power outage, if you don’t pay, don’t expect to play, Yes, Cruz supports voter suppression laws, and he tweeted:

There you have it. Pay to play. The Ted Cruz way.

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A Breath of Fresh Air

It some ways it was certainly unusual. But mostly its normalcy made it a breath of fresh air. For more than an hour President Joe Biden delivered a report to Congress, the nation, and the world on the state of the state one hundred days into his administration. He laid out the achievements already accomplished, the programs now under way, and the proposals he is sending to Congress for enactment into law.

One way the speech was unusual was that there were two women behind the president. Presiding over the joint session of Congress were Vice-President Kamala Harris, who is President of the Senate, and Nancy Pelosi, the Speaker of the House of Representatives. That was a historic first. Another way was that the chamber, which normally holds 1,600 people for these events, was limited to 200 by pandemic protocols. The audience members were socially distanced and most were masked.

But the speech itself was “normal” in that it was upbeat and forward looking. You can read it and judge for yourself here. I heard a president speak without pointing fingers and naming names. I heard a president applaud all Americans and political leaders of both parties for their work in achieving the successes already accomplished. And I heard a president call on us all to work out our differences and reach compromises to solve the problems we face.

This was a far cry from the presidential speeches of the last four years. Donald Trump never missed an opportunity to pat himself on the back, denigrate those who differed with his opinions by name and in threatening terms, and try to scare us by insisting our nation was threatened by his political opponents and only he could protect us.

From President Biden:

There is not a single thing, nothing, nothing beyond our capacity. We can do whatever we set our minds to if we do it together. 

Senator Tim Scott, Republican of South Carolina, delivered the opposition response. He had an opportunity to strike a consolatory note. He did not. Once again I urge you read the text yourself. After a propitious start, I heard Scott fall back on the same old same old in terms of the Republican line. His first grievance is that President Biden is not “bipartisan.” That complaint ignores several realities. First, that the Democrats did win the election. Second, that the various proposals the Democrats have proposed are popular. Even with Republican voters and in a Fox poll. And finally, that for all their bluster and blunder, Republicans have not put forth any proposals of their own with enough Republican cosponsors to be passed into law.

Another Republican complaint is that the Democrats are moving beyond the “traditional” definition of infrastructure, whatever that means. I’ve discussed this before. As I see it anything that contributes to the long-term benefit of Americans qualifies as infrastructure and is a worthwhile investment.

And finally, Republicans complain about the cost and the impact of President Biden’s proposals on the deficit. As anyone who remembers their high school math can see for themselves, if they are willing to do a little research, it is Republican presidents starting with Reagan who have increased the deficit. They’ve done it mostly by lowering taxes on companies and the richest Americans, claiming everyone will benefit. But most of us have not, as President Biden noted:

My fellow Americans, trickle down — trickle down economics has never worked, and it’s time to grow the economy from the bottom and the middle out.

In 1952 and 1954 the highest marginal tax rate for individuals in the United States was 92 percent, the highest ever. For tax year 2020, including a charge for the Affordable Care Act, the maximum federal income tax rate was 40.8 percent. President Biden:

So, how do we pay for my jobs and family plan? I made it clear, we can do without increasing the deficit. Let’s start with what I will not do. I will not impose any tax increase on people making less than $400,000. But it is time for corporate America and the wealthiest 1% of Americans to just begin to pay their fair share. Just their fair share.

He could not be more clear. His proposal calls for tax increases on individual taxpayers only on earnings above $400,000. That’s the one percent of Americans who have enjoyed almost all the benefit of decades of Republican tax cuts. Still Senator Scott and other Republicans have been hitting the airwaves complaining of what they call “massive,” “deficit increasing,” and “job killing” tax increases. These are simply lies.

There will be increases in taxes on America’s largest and most profitable companies. Republicans argue that raising the marginal corporate tax rate to a level greater than the rate in most other industrialized countries will be drive these companies overseas. But marginal tax rates are not what matters. What matters is the amount companies actually pay.

These companies give huge campaign contributions to lawmakers and have lobbied for and then used every tax preference, read “loophole,” available to reduce their tax liability. At least 55 of the largest corporations in America paid no federal corporate income taxes in their most recent fiscal year despite enjoying substantial pretax profits in the United States. These companies all benefit from the infrastructure spending of the federal government. President Biden:

Look, the big tax cut of 2017, you remember it was supposed to pay for itself. That was how it was sold. And generate vast economic growth. Instead, it added $2 trillion to the deficit. It was a huge windfall for corporate America and those at the very top.

Instead of using the tax saving to raise wages and invest in research and development, it poured billions of dollars into the pockets of CEOs. In fact, the pay gap between CEOs and their workers is now among the largest in history. According to one study, CEOs make 320 times what the average worker in their corporation makes, it used to be in the — below 100. The pandemic has only made things worse. 20 million Americans lost their job in the pandemic, working and middle class Americans.

There is one complaint the Republicans put forward that is at least based on fact. The massive programs President Biden has proposed do increase the role of the federal government in our lives. So what? These programs have succeeded many times in our history and improved the lives of average Americans. You can’t deny that we face problems that have to be solved, competition that needs to be addressed, inequities that must be alleviated if social tensions are to be managed. President Biden:

I like to meet with those who have ideas that are different, that they think are better. I welcome those ideas. But the rest of the world is not waiting for us. I just want to be clear, from my perspective, doing nothing is not an option.

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Infrastructure for the 21st century

I long for the days when I could have a rational discussion with someone I disagree on the serious issues of the day without that person spouting a stream of totally unsubstantiated falsehoods. In other words lies. I’m pointing my finger at you, Republicans, almost without exception.

Discussions with Democrats are also often frustrating. But that is because the Democrats include a wide range of differing views and the disagreements are generally over strategy. I’m thinking of you Joe Manchin. Not over the role of government in attempting to solve problems or denying that problems even exist. And Democrats are not inclined to interrupt a serious discussion with a rude critique of your mother’s footwear. I still remember being told, “Your mother wears army boots.” I was on the first grade playground at recess at the time.

Republicans will call you every name in the book at the drop of a hat. They will insult your relatives, living and dead. And charge you with a wide variety of crimes without the slightest bit of evidence. They also live in an alternate universe where up is down, down is up, and things you can see right before your own eyes are somehow not true. They revere the framers who wrote our Constitution, except when they ignore it.

Republican hypocrisy knows no bounds:

  • Senate rules are sacrosanct unless they need to be broken to thwart a Democratic proposal.
  • Deficits are bad but only if there is a Democrat in the White House.
  • The purpose of the federal government is to “provide for the common defense,” quoting the magnificent preamble to our Constitution, ignoring the fact that the phrase is part of a list and imminently following are the words, “promote the general welfare.”
  • Infrastructure means roads. That’s it. Roads.

Let’s put the debt debate aside for now except for to state that the evidence is clear, economics is an art, not a science. We really don’t understand what it is going on. Starting with Ronald Reagan, Republican, yes, Republican presidents have greatly increased the national debt by cutting taxes and increasing defense spending. Yet the inflation that was predicted by my college economics teacher (we used Paul Samuelson’s Principles of Economics) did not really appear. Go figure. For more right now I refer you to a great piece by John Oliver.

What this means is, while we should be watchful, and Fed Chairman Jerome Powell seems to be, we do not have to be afraid of some Covid related economic stimulus. Republicans opposed the latest round of Covid economic payments even when Donald Trump asked for them. We also do not need to be afraid of a big infrastructure program. The Republicans are outraged at the infrastructure program, arguing that it will increase the debt and complaining that Democrats are extending the traditional definition of infrastructure.

Republicans don’t seem to have a problem with repairing the nation’s highways and bridges. Republican Dwight Eisenhower signed the legislation that created the Interstate Highway System in 1956 after all. But Republicans like highways that connect towns in rural America. Transportation projects that benefit urban areas do not get their approval. I take the New Jersey Transit train under the Hudson to Manhattan and always wonder if the crumbling tunnel, built in 1910, is going to cave in on the 200,000 people who use it every day. In 2012 the tunnel was inundated with millions of gallons of salt water during Super Storm Sandy. The water left behind corrosive chlorides, which continue to damage the already aged concrete and wiring. A Republican New Jersey Governor, Chris Christie, and a Republican President, Donald Trump, each killed a project to build a replacement.

But where the Republicans most throw up the roadblocks is where it comes to infrastructure they claim is outside of the “traditional” definition of the word. I disagree. But I also don’t care. We do not live in a stagnant word. We can be respectful of our traditions but should not be afraid to change them for the public good.

So I am on board with what some analysts are calling “Social Infrastructure”:

Social infrastructure can be broadly defined as the construction and maintenance of facilities that support social services. Types of social infrastructure include healthcare (hospitals), education (schools and universities), public facilities (community housing and prisons) and transportation (railways and roads).

Aberdeen Standard Investments

I do not understand why people cannot see that the nation depends on the health of its people, and the safety, and quality of its schools. We also need a 21st century power grid and high-speed rail would be nice. Child care for working parents is an economic necessity. In an information driven society, broadband connections for the entire population are essential. Faced with tremendous world-wide competition education, research and development are all that stands between America and second-class status.

The public seems to understand this even if the Republicans do not. A Quinnipiac University National Poll finds the Infrastructure Plan is popular with the public:


Q46 Do you support or oppose President Biden’s $2 trillion infrastructure plan?

—–

Support

Oppose

DK/NA

Total

44%

38

19

Republicans

14%

71

14

Democrats

81%

5

15


And even more popular if corporate taxes fund it as President Biden has proposed:

Q47 As you may know, President Biden has proposed funding his infrastructure plan by raising taxes on corporations. If it was funded by raising taxes on corporations, would you support or oppose President Biden’s $2 trillion infrastructure plan?

—–

Support

Oppose

DK/NA

Total

53%

39

9

Republicans

22%

70

8

Democrats

92%

6

2

Last but not least, expenditures on infrastructure, traditional and 21st century alike, have a large multiplier factor. Put simply, they pay off many times over. The benefits spread throughout the economy. The Eisenhower creation of the Interstate Highway System is credited with creating the long post-war expansion of the American economy. Studies show tax cuts for rich people and fiscal policies which benefit Wall Street do not have this positive effect. The proposed infrastructure projects should be seen as an investment in America’s future.

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Trump Trial #2 – sine die

US Senate

And so it is over. The second trial of Donald J. Trump, the only president to have been impeached twice, has adjourned. And Trump is now also the only president to have been found not guilty twice by the U.S. Senate. In the final tally, 57 senators, including 7 Republicans, found Trump guilty of high crimes and misdemeanors for inciting the mob that went on to breach and vandalize the Capitol, and to injure and kill law enforcement personnel. Forty-three senators found Trump not guilty. A supermajority of 67 being constitutionally required for conviction, the result was not guilty.

But only a handful of Trump’s most loyal supporters rushed to the cameras to proclaim that their leader had been exonerated by what goes down as the most bipartisan impeachment in history. The senators, and the world, saw the video of senators and members of the House fleeing for their lives during the attack on January 6th. They saw the Vice-President, Mike Pence, and his family being ushered away from the senate chamber by the Secret Service. They viewed Trump’s tweet of rage following Pence’s refusal to attempt an unconstitutional coup by rejecting of the voter’s will saying, “Mike Pence didn’t have the courage to do what should have been done to protect our Country and our Constitution.” They heard testimony that Trump had sent that tweet moments after receiving word that the Vice-President’s life was at risk.

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GameStop – The Casino at Broad and Wall

I thought it was a very strange story. “Analysts confounded by GameStop price moves” read the headline in the business section of one of the world’s most widely read newspapers. “Recent volatility in the stock of GameStop has confused analysts following the video game retailor” read the lede line.

That there had been great volatility in the price of a share of GameStop was not debatable. The stock was trading below $20 a share at the end of 2020. On January 29, 2021 it hit $325. That’s a jump of 1,625%. If you had bought 100 shares on December 31, you would have paid $2,000. On January 29, one month later, your 100 shares would have been worth $32,500. If you think you understand the stock market that is a mindboggling increase. Certainly one to “confound” and “confuse.” But as your intrepid reporter wrote in my primer for the National Center for Business Journalism, stock markets are not what they used to be.

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Joe Biden’s Day

There is much to say about all the players who participated in the Inauguration of Joseph R. Biden as the 46th President of the United States. But we’ll save that for another day. For this was Joe Biden’s Day. And I want to let him speak in his own words.

“This is America’s day,” Biden said. “This is democracy’s day.” What struck me first and foremost was how normal it all seemed. A new President. A new administration. Words meant to soothe a bruised nation. Words meant to call us to arms to face the challenges ahead. And above all, words not about him, but words about us.

Today, we celebrate the triumph not of a candidate, but of a cause, the cause of democracy. The people, the will of the people, has been heard and the will of the people has been heeded. We’ve learned again that democracy is precious. Democracy is fragile. At this hour, my friends, democracy has prevailed.

After four plus years of having every White House utterance a statement of, by, and for Donald Trump, this was a breath of fresh air. Coming two weeks to the day when a mob of insurrectionists stormed the very same platform in front of the Capitol in an attempt to nullify the voters will this was remarkable.

From now, on this hallowed ground, where just a few days ago, violence sought to shake the Capitol’s very foundation, we come together as one nation, under God, indivisible, to carry out the peaceful transfer of power, as we have for more than two centuries.

Biden pulled no punches in listing the challenges; the Covid pandemic, the climate crisis, political extremism, white supremacy and domestic terrorism. And then he hit his main theme, a call for unity.

I know speaking of unity can sound to some like a foolish fantasy these days. I know the forces that divide us are deep and they are real, but I also know they are not new. Our history has been a constant struggle between the American ideal that we’re all created equal and the harsh, ugly reality that racism, nativism, fear, demonization have long torn us apart. The battle is perennial and victory is never assured.

This is our historic moment of crisis and challenge. And unity is the path forward. And we must meet this moment as the United States of America. If we do that, I guarantee you we will not fail. We have never, ever, ever, ever failed in America when we’ve acted together.

As I read those words it is tough to keep the cynic in me down. So many times we have heard these calls for unity and cooperation only to see the hopes dashed on the rocks of bipartisanship. But this is Biden’s Day so let’s give him his due and hope he can pull it off.

We must end this uncivil war that pits red against blue, rural vs. urban, conservative vs. liberal. We can do this if we open our souls instead of hardening our hearts. If we show a little tolerance and humility, and if we’re willing to stand in the other person’s shoes, as my mom would say, just for a moment, stand in their shoes. Because here’s the thing about life: There’s no accounting for what fate will deal you. Some days when you need a hand. There are other days when we’re called to lend a hand. That’s how it has to be. That’s what we do for one another. And if we are this way, our country will be stronger, more prosperous, more ready for the future. And we can still disagree.

I hope the naysayers and obstructionists will take heed and just give it a try. Bipartisanship does not mean you get your way. It means you compromise. You horse-trade. You win some and lose some. But you move forward and get things done. For decades we have for the most part failed to do this. If anyone can get us moving again, it will be Joe Biden, a man of faith, a man with empathy for others, a man who sees the difference between the truth and the lies, a man who has been in the Senate and worked with representatives of both parties for longer than most of us have been alive.

Folks, this is a time of testing. We face an attack on our democracy and on truth, a raging virus, growing inequity, the sting of systemic racism, a climate in crisis, America’s role in the world. Any one of these will be enough to challenge us in profound ways. But the fact is, we face them all at once, presenting this nation with one of the gravest responsibilities we’ve had. Now we’re going to be tested. Are we going to step up? All of us? It’s time for boldness, for there is so much to do. And this is certain, I promise you: We will be judged, you and I, by how we resolve these cascading crises of our era.

Now we all face the test. How will we respond to Biden’s call?

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Twice Impeached

Another record for the man who is everything. Donald Trump is now the only person to have been impeached twice by the House of Representatives. Whether or not he is found guilty when tried by the Senate, he also has the distinction of being a president of the United States accused by a bipartisan coalition. Ten Republican House members voted to impeach the titular head of their party. Four others abstained from the vote.

It is not difficult to see why. The impeachment came one week after a violent mob, encouraged by Trump, came to Washington and attacked Congress in an attempt to keep it from counting the certified election results sent in by all fifty states and the District of Columbia. Trump, leader of the executive branch of government, was demanding the mob stop the legislative branch from performing its constitutional and statutory function and instead disenfranchise millions of voters and install Trump as a literal dictator.

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