Pacific Progressive

Think Again: A "Very, Very Bad" Article

By Eric Alterman

This article was published by the Center for American Progress.

"There's a Rolling Stone article out," an aide told then-General Stanley McChrystal early last week. "It's very, very bad."

The aide was half right. Michael Hastings’s Rolling Stone article, “The Runaway General,” was out, but it was not bad in any way, except for McChrystal’s now-ended military career. It was simply superlative in pretty much every other imaginable respect: an almost picture-perfect example of skillful interviewing, smooth narrative writing, extremely exhaustive research, and finally (and perhaps rarest) thoughtful contextualizing of extremely complicated material. I recommend it to all journalism professors as an example of the state of the journalistic art.

But almost as impressive as the article itself—and, of course, the commotion it caused in the administration’s Afghan policy resulting in McChrystal’s firing and his replacement by Gen. David Petraeus—has been the Washington journalistic establishment’s reaction to it. Reporter after reporter has complained that by accurately reporting what McChyrstal and his aides said in explicitly on-the-record conversations to a reporter with a tape recorder and/or notepad in his hand, Hastings has violated the tenets of professional journalism. (A few of the reporters did this, it should be added, after stealing his work for their own websites.)

First out of the gate, a Politico writer offered the theory that Hastings had gone ahead with his report because he did not mind “burning bridges by publishing many of McChrystal’s remarks.” Oddly, not long after this paragraph began to attract some unflattering attention from disparate corners of the blogosphere, it somehow disappeared from Politico’s website in what its author later explained was “a routine updating” by subtraction.

Opening Doors: How to Make the Workforce Investment Act Work for Women

By Liz Weiss 

This article was published by the Center for American Progress.

Download the full report (pdf)

Download the executive summary (pdf)

Download the report to mobile devices and e-readers from Scribd

The U.S. workforce development system is not meeting the needs of one half of our workforce—women. The Workforce Investment Act is a critical tool for employment and training for American workers. But WIA emphasizes quick job placement over building skills or attaining education, and the system is not set up to recognize and prevent unequal results of women or other participants.

Women are particularly short-changed by this system because it perpetuates, and even exacerbates, labor market inequities, specifically gender segregation by occupation and a large gender wage gap. WIA programs do not focus on these problems. Nor do they provide adequate training or career counseling. The upshot: Women enter mostly low-skill, low-wage “women’s jobs,” such as nursing aides, cashiers, and office clerks, and earn much lower wages than men. This segregation occurs even for women who receive the highest level of WIA service—training.

Congress and the Obama administration can do better for women. Their vehicle for reform: Congressional reauthorization of the Workforce Investment Act. WIA programs simply must deliver a well-functioning workforce development system for women. Women today often depend on their own income to support themselves and their families, especially the nearly half of women who are unmarried. But a woman’s income is too often not adequate for a decent standard of living or to support a family.

Want to Know What a Hospital Charges? Good Luck

By Christopher Weaver, KHN Staff Writer

This article was published by Kaiser Health News.

When Bill Rose broke his leg in a motorcycle accident, he knew he’d end up paying for surgery himself-- he was temporarily uninsured. So he asked the hospital for an estimate and negotiated a 30 percent discount, bringing the price down to $8,260 in exchange for paying up front.

Rose's story shows the difficulties faced by consumers – especially the uninsured -- when they try to shop for the best price or negotiate. More than 30 states, including Ohio, require hospitals to disclose at least some of their charges, according to theNational Conference of State Legislatures. Congress included such a provision in the new health overhaul law and similar proposals are pending in the House. But many experts say these efforts don’t help much.

Paul Ginsburg, president of the Center for Studying Health System Change, a research organization in Washington, says published hospital charges are "useless for consumers."  One reason, as Rose discovered, is that hospital prices are moving targets, varying with patients' needs and doctors' treatment strategies.

"Every doctor does it differently," says Dr. Steve Neeleman, a surgeon at Intermountain Healthcare in Utah. Doctors, who are usually not hospital employees, may not be thinking about costs when they choose treatments, he says. Complications may also lead to bigger bills, though Rose's surgeon noted there were none in his case.

Estimates Are Unreliable

Larry Dodge, Husband of Kristina Dodge, Charged in Financial Losses at American Sterling

On June 25, 2010, Larry Dodge, husband of Fair Board President Kristina Dodge, was charged by the Office of Thrift Supervision (OTC) with actions which harmed American Sterling Bank.  In April 2009, American Sterling Bank was taken over by the FDIC and is now operated by Metcalf Bank.  Dodge was the majority shareholder of American Sterling.

OTS alleges that false and misleading financial reports were filed from the first quarter of 2007 and continued to December 2008. The charges allege that beginning in 2006, American Sterling had difficulty in meeting the legal definition of "well capitalized" and took actions to appear to make the bank "well capitalized" when it was not.  To meet FDIC insurance and other banking law requirement, banks must be able to show they have a certain level of assets available at all times. If banks fall below these requirements, deposits may not be insured and other penalties may kick in.  

To purportedly pump up the capital at the bank, $2 million from the California Republican Party and $400,00 from Millenium Gate Receivable (a real estate investment), $706,949 from Mountainview Mortgage and $750,000 from 9800 Muirlands property  were reported as capital contributions when they were potentially not.  The OTS filing alleges that no money was received by American Sterling  from either the California Republican Party,  Millenium Gate, Mountainview Mortage or 9800 Muirlands.   Larry Dodge, a member of the New Majority, has given millions to the California Republican Party and Gov. Schwarzenegger over the years.  

In January 2009, Larry Dodge resigned as an officer and director of American Sterling.  On April 17, 2009, the bank went into FDIC receivership.  

A hearing will be held in Kansas City, MO, unless Dodge agrees to the charges and pays the fine of $2.5 million.  In addition to the fine, Dodge could be prevented from working at or with other insured depository institutions.  Dodge's response to the charges was not available.

Part-Time Workers to Get Help on Health Insurance - But Not Now

by Michelle Andrews

This article was published by Kaiser Health News.

Sarah Rose Nordgren works 25 to 30 hours a week as a waitress at an upscale restaurant in Chapel Hill, N.C. She also tutors high- schoolers on their college entrance essays and has an editorial internship at a book publisher. But if something were to go seriously wrong with her health, she'd be in trouble because none of her three jobs offers health insurance.

She's been looking for a full-time job with benefits for several months, but there's nothing on the horizon. So she shuttles between jobs and hopes that she stays healthy.

Nordgren's situation is not unusual. Fewer than a third of employers that offer health insurance make it available to their part-time workers, according to the Kaiser Family Foundation. (Kaiser Health News is a program of the foundation.) And even if health insurance benefits are offered, part-timers, who often work in lower-paid retail, restaurant and service jobs, may not be able to afford them.

More From This Series:Insuring Your Health

Perception vs. Reality on the Southern Border: Border Security Achievements Must be Paired with Comprehensive Reform

This article was published by the Center for American Progress.

For more on this event see here.

The Comprehensive Immigration Reform Act died in the Senate three years ago this week. On Monday, a report and a panel discussion at the Center for American Progress on the important progress made in border security since 2007 marked the anniversary of that bill’s failure.

COBRA, Medicaid Subsidies Still Loom Over Congressional Agenda

By Andrew Villegas, KHN Staff Writer

This article was published by Kaiser Health News.

Democrats left Washington for the July 4 recess without passing key parts of their health care agenda.

Earlier this year, party leaders hoped to extend subsidies so newly laid off workers could afford health insurance under the COBRA program. And, with states hit hard by the recession, an extension of extra Medicaid funds also seemed likely. Also, while Congress passed legislation averting a 21 percent cut in Medicare payments to physicians, it was for just six months, instead of the two or more years many Democrats had envisioned.

But House and Senate leaders found themselves mired in a contentious debate, with conservative Democrats and Republicans opposing programs that could add to the deficit. Finally, both houses reached an accord on a short-term Medicare doctor payment fix. The Medicaid and COBRA subsidies are still in limbo.

Here's an update on where these proposals stand:

More Medicaid Money For States

Because they were convinced the money was imminent, 29 states set their budgets for the upcoming fiscal year counting on a continuation of the increased federal Medicaid matching rate. The funds were first approved as part of last year's stimulus package, but will expire at the end of December. Until that time, the federal government will pay 61 to 84 percent of all Medicaid costs, depending on the state. The normal federal share ranges from 50 percent to 76 percent.

Private Sector Hiring Lackluster in June

By Heather Boushey 

This article was published by the Center for American Progress.

Today’s labor market numbers for June from the Bureau of Labor Statistics show an expected overall drop in employment, with total payrolls falling by 125,000 largely because the U.S. Census Bureau let go of 225,000 temporary Census workers last month. Yet digging deeper into the data, today’s report shows tepid job growth in the private sector—an additional 83,000 new jobs—alongside continued lay-offs by state and local governments.

Today’s report is yet another confirmation that the nascent economic recovery is not yet creating enough jobs and that policymakers should return from their holiday to provide help for long-term unemployed Americans, as well take other steps to stem the lay-offs by state and local governments. The pace of job growth remains far below what the economy needs just to keep pace with population growth, let alone begin to employ all those now in the unemployment queue. Over the past three months, the economy has added an average of 119,000 private sector jobs each month. At this pace, it will take our economy five and a half years to simply re-create all the jobs lost since the Great Recession began in December 2007.

The situation for long-term unemployed workers continues to show no improvement. There are 6.8 million workers who have been out of work and seeking a job for at least six months. These workers are losing their unemployment benefits right now due to the Senate’s inability to pass the necessary legislation. Without delay, unemployed workers need extended unemployment benefits, both for themselves and their families, and the broader economy.

Chinese Strike Put Virtuous Circle in Motion: Better Conditions for Chines Workers Are Good for the United States, Too

by Ann Paisley

This article was published by the Center for American Progress.

Labor unrest and strikes are spreading through China as newly emboldened workers press for higher wages and better working conditions, forcing employers to face the reality of a smaller and more empowered working-class community. The shift stems from China’s one-child policy, which was introduced in the late 1970s and is starting to narrow the pool of available, young, migrant workers in China’s cities.

This shift could help improve working and living conditions in an economy that has been largely built on inexpensive labor. And, together with other reforms, it could also slow China’s export industry and increase China’s domestic consumption in the long term. This could prove beneficial to the United States, and U.S. policymakers should encourage this transition, since a wealthier middle class in China is capable of importing more goods and services from U.S. companies, potentially boosting our nation’s exports and economic wellbeing.

Some trace the recent surge in labor unrest to Foxconn’s factory in Shenzhen, where there have been 12 suicide attempts—10 of which were successful—since January 2010. The string of suicides shed light on harsh working conditions and stirred up accusations that the Taiwanese company was running a sweatshop in Shenzhen. One of the suicide victimsworked 11-hour overnight shifts for seven days in a row, acquiring 286 hours in just one month, 112 of which were in overtime, yet only earned the equivalent of $1-an-hour. Foxconn consequently offered employees a 30 percent pay increase, which set the tone for pay raises throughout China’s factories.

Outsourcing Security: Defense Manufacturing Goes the Way of the Automobile

by John Lasker, Truthout Op-Ed

This article was published by Truthout.

From the microchips that fly F-16s and activate nuclear warheads, all the way down to the lowly (but deadly) bullet, more and more US military weapons are being made overseas by foreigners.

Some experts say that outsourcing defense contracts not only costs Americans jobs and America's connection to the war, but one of the nation's most essential assets, as well: its security.

According to William R. Hawkins, a defense expert on military contracting and former Republican Party staffer, foreigners have been manufacturing critical and sophisticated components of US weaponry for nearly 20 years now. 

He says the Pentagon started outsourcing the manufacturing of "high-end" computer chips to Taiwan in the early 1990s - microchips used in US fighter jets and missile defense systems, for instance. Over time, the Taiwanese have "second-sourced" most of these contracts to the Chinese, he says.

"Can we trust buying [high-end] chips from China for our military systems? Will they perform as well?" asks Hawkins. "We have found Chinese chips do not perform as well. They've also found counterfeit chips in the supply chain. Can we be sure the Chinese won't plant Trojans or bugs in them?"

Indeed, on June 13th on 60 Minutes, Jim Gosler, an expert on cyberwarfare, said the US government has uncovered sabotaged microchips within some of the nation's most powerful weapons. "It's very clear that a foreign intelligence service put them there," he added.

California Water Wars Rage On

by Dan Bacher, Truthout Op-Ed

This article was published by Truthout.

Activists square off against legislature over AB 2775

Representatives of the No on the Water Bond Coalition slammed California's AB 2775, an alleged "fix" of the Safe, Clean, and Reliable Drinking Water Supply Act of 2010, after the bill passed out of the Senate Natural Resources and Water Committee on June 22.

"AB 2775 is no fix at all," said Tina Andolina of the Planning and Conservation League. "Tinkering around the edges won't fix this bond. This measure does not truly address the problem that the bond will allow private companies to profit as taxpayers foot the bill. We will see water privatization on an even larger scale if the bond passes, and this bill does nothing to address the problem."

AB 2775 makes technical changes to the 2010 Water Bond, passed by the Legislature in November 2009 and scheduled to go to the voters in the November 2010 election.

Democratic Senator Jared Huffman and Republican Dave Cogdill, who rarely agree about anything with respect to water, coauthored the bill Huffman said would achieve a "narrow point of consensus," a "surgical change."

The bill deletes a section in the proposed water act that would authorize a Joint Powers Authority (JPA) that owns and operates a surface storage reservoir partially funded with public bond funds to include private members with equity participation, according to Senator Cogdill's office.

"By removing this provision, AB 2775 clarifies two issues," said a Cogdill staffer. "First, Section 79749 (b) allows private partners with equity shares in surface storage reservoirs that are in part publicly funded. Removing this provision resolves potential confusion with other provisions in the 2010 Water Bond that require public funds be used only for public benefit. Second, deleting Section 79749(b) clarifies that JPAs should include public agency members."

Closing BP's Escape Routes

by Robert Weissman, Truthout Op-Ed

This article was published by Truthout.

BP generates enough cash to absorb its liabilities from the oil gusher in the Gulf of Mexico.

But that doesn't mean it will.

One of the benefits of the corporate form is that it gives giant corporations the ability to escape liability. BP may or may not choose to capitalize on such escapes, but it would be foolish to presume that it won't. That's why President Obama's call for the company to establish a $20 billion escrow account is such a positive and needed - if still inadequate - step.

Consider first the liabilities that BP may face. No one really knows what the damage from the oil gusher or the overall costs to BP may ultimately be. Some analysts are now throwing around numbers of $70 billion on the upper end - but it's not hard to see how the ultimate cost to BP could rise even higher.

The company faces civil fines of up to $3,000 per barrel of oil polluting the ocean. If the gusher lasts for four months at 40,000 barrels a day, the fine alone could hit $14 billion. If it is found that the actual oil flow is double that level, the fine could potentially approach $30 billion - more, if the gusher lasts for more than four months.

Beyond the payments the company is making, it is going to face massive lawsuits, with damages surely in the billions and quite possibly in the tens of billions. On top of that, it may face a massive punitive damage award. Exxon challenged a punitive damages award of $10 billion in the Valdez case, and succeeded through appeals in dragging out payment for 20 years and lowering the amount to $500 million. But that was $500 million on top of compensatory damages of $500 million.

Now We're Talking: A Look at Current State-Based Foreclosure Mediation Programs and How to Bring Them to Scale

By Alon Cohen, Andrew Jakabovics

This article was published by the Center for American Progress.

Read the full report (pdf)

Download the executive summary (pdf)

Download the report to mobile devices and e-readers from Scribd

There is a growing recognition in states across the country of the value of requiring foreclosure mediation when homeowners and their lenders and mortgage service companies enter the foreclosure process. A year ago, the Center for American Progress was one of the first organizations to highlight the need for these foreclosure mediation services at the federal level, pointing out the effectiveness of several of these programs at the state level. Required mediation prior to foreclosure is not yet a part of federal efforts to prevent unnecessary foreclosures, either within the suite of Making Home Affordable programs, or as part of loss mitigation efforts for federally backed mortgages. Still, there are encouraging signs; the number of states and municipalities that are in the process of implementing these kinds of mediation programs—joining other states that already boast such programs—are significantly on the rise since we completed our last report.

Today the number of jurisdictions with foreclosure mediation programs is nearly double the number a year ago, with jurisdictions in 21 states now offering foreclosure mediation or negotiation programs, up from 11 in our report last June. And we expect the list to continue to grow as legislation already introduced in additional states becomes law. What’s more, the promise and practicality of foreclosure mediation is garnering support nationwide, including that of the American Bar Association.

Economic Mismanagement: Conservatives Vote to Torpedo Our Economy

By Heather Boushey 

This article was published by the Center for American Progress.

Congress is now home for the July 4 holiday without extending unemployment benefits. The argument of those conservatives who filibustered the legislation is that it is more important to rein in federal deficits than it is to maintain the meager incomes of the unemployed so that they can remain part of America’s great consumer base and help employed Americans keep their own jobs.

Yet today’s new data from the Bureau of Labor Statistics shows that private-sector hiring continues at a tepid pace. Over the past three months, the economy has added an average of 119,000 private-sector jobs each month. At this pace, it will take the economy 66.4 months, or 5.5 years, to re-create all jobs lost (assuming 7.9 million deficit).

Why are these opponents of extended unemployment benefits willing to risk a double-dip recession? One reason is politics. Conservatives think if President Barack Obama is for something then they must be against it. While stopping aid to the unemployed may indeed end up helping conservatives rally their base in November, this does not seem to be the “easy” vote-getting strategy for independent voters who will be key to ultimate electoral success.

Conservatives also believe that the way to fix the economy is to “starve the beast,” the “beast” being the federal government that provides (among many other necessary services) unemployment insurance when Americans lose their jobs through no fault of their own. The economic logic behind this argument is that federal deficits will lead to future tax increases, which means Members of Congress should rein in government spending. Of course, these same conservatives mostly had no problem supporting record budget deficits when they controlled Congress and George W. Bush was president.

Fixing Wall Street, Protecting Main Street

By Pat Garofalo

This article was published by the Center for American Progress.

See also: Ask the Expert: Pat Garofalo on Financial Regulatory Reform

Both the House of Representatives and the Senate will soon vote on the Dodd-Frank Wall Street Reform and Consumer Protection Act, a financial regulatory reform bill aimed at correcting the deficiencies in our nation’s financial regulatory system that led to the financial meltdown of 2008. If enacted, the bill will put in place the most significant improvements to the nation’s regulatory framework since the New Deal.

There were many reasons for the economic collapse of 2008, the effects of which are still being felt by families across the country, but chief among them was a financial system that worked in the interests of Wall Street and too-big-to-fail financial institutions, and against the interests of consumers, especially homeowners, but including all kinds of Americans in need of consumer finance. Adequate safeguards were not in place to protect consumers from predatory financial products and Wall Street excess, and these products were then securitized and sold around the world, amplifying risk while minimizing the responsibility of the culpable lender.

Huge markets in complex financial instruments were allowed to grow exponentially, out of the watchful eye of regulators. Those regulators that did speak up about the growth of this “shadow banking system” were drowned out by others who believed in the conservative regulatory philosophy that the market would self-correct all ills. Companies that had previously confined their activities to traditional financial products, such as the global financial insurance giant American International Group, were allowed to mix those with riskier products and to balloon in size, as Treasury Secretary Tim Geithner said, “without any adult supervision.” AIG, of course, had to be rescued by the U.S. government after the collapse of investment bank Lehman Brothers amid the crisis of 2008.