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Wednesday
May302012

Supreme Court Likely Has Had Second Thoughts

LITTLE ROCK, Ark. — Former U.S. Supreme Court Justice John Paul Stevens said Wednesday night he expects that the court has already had second thoughts about parts of its controversial Citizens United ruling that eased restrictions on corporate spending in political campaigns.

The sharply divided court ruled that independent spending by corporations does “not give rise to corruption or the appearance of corruption.” Stevens, who dissented from that 2010 decision, said that at some point the court will have to issue an opinion “explicitly crafting an exception that will create a crack in the foundation” of that ruling.

Speaking to hundreds of people at an event in Little Rock, the retired justice said President Barack Obama accurately criticized the ruling for reversing a century of law and allowing special interest groups to pump money into elections.

He cited Justice Samuel Alito’s reaction to Obama’s criticism, along with one of the court’s later rulings when the justices rejected a free-speech challenge from humanitarian aid groups to a law that bars support to terrorist organizations.

Stevens said “the fact that the proposed speech would indirectly benefit a terrorist organization provided a sufficient basis for denying it First Amendment protection.”

He also pointed to televised debates when moderators try to allow candidates equal time to express their views. He said candidates and viewers wouldn’t like it if there were an auction giving the most time to the highest bidder.

“Yet that is essentially what happens during actual campaigns in which rules equalizing campaign expenditures are forbidden,” he said.

Read the full story at Washington Post.

Saturday
May262012

Democracy is for Amateurs

ERIC LIU - Eric Liu is co-author of The Gardens of Democracy and creator of the Guiding Lights Weekend, a conference on creative citizenship.

This year I'll wrap up a decade as a trustee of the Seattle Public Library. Our board of five citizens has unusual authority. Appointed by the mayor, we are an independent operating body. The city council gives us a line in the budget, but how we spend those funds, on what programs, in what allocations across which neighborhoods, with what kinds of popular input, and under what policies -- all such decisions rest in the hands of our citizen board.

There's something very American about such a volunteer body... Indeed, this is something of a golden age for amateurs. With big data and social media amplifying their wisdom, crowds of amateurs are remaking astronomy, finance, biochemistry and other fields.

But not so much the field called democracy. The work of democratic life -- solving shared problems, shaping plans, pushing for change, making grievances heard -- has become ever more professionalized over the last generation...What we need today are more citizen citizens. Both the left and the right are coming to see this. It is the thread that connects the anti-elite 99 percent movement with the anti-elite Tea Party.

...When self-government is dominated by professionals representing various interests, a vicious cycle of citizen detachment ensues. Regular people come to treat civic problems as something outside themselves, something done to them, rather than something they have a hand in making and could have a hand in unmaking. They anticipate that engagement is futile, and their prediction fulfills itself.

So how do we replace this vicious cycle with a virtuous one? What does it take to revive a spirit of citizenship as something undertaken by amateurs and volunteers with a stake in their own lives? There are four forces to activate, and they cut across the usual left-right lines.

First, we have to develop what filmmaker Annie Leonard calls our "citizen muscle." As Americans we have hugely overdeveloped consumer muscles and atrophied citizen muscles. When we are consumers first, our elected leaders sell us exactly what we want: lower taxes, more spending, special rules for every subgroup.

Having a citizen muscle means thinking about the future and not just immediate gratification. It means asking what helps the community thrive, not just oneself. It means observing social change like a naturalist, and responding to it like a gardener. It means learning and teaching a curriculum of power -- in schools, and in settings for all ages -- so that we can practice power, even as amateurs.

Second, we need to radically refocus on the local... Localism gives citizens autonomy to solve problems; networked localism enables them to spread and scale those solutions.

Third, think in terms of challenges rather than orders. One of the best ways to tap collective smarts is to set great goals and let diverse solutions emerge -- to be big on the what and small on the how... How can government behave more this way?

Fourth, create platforms where citizen citizens can actively serve...

So what are the obstacles to the cultivation of "citizen citizenship"?
One is the assumption that only the privileged can afford the time to participate. There's of course truth to that. But the rising immigrant rights movement and the emergence of domestic workers as a civic force, to name but two recent examples, suggest that where there is will to make time there's a way.

A cynic might also say that the well educated and well connected will always have an edge in the game of civic participation. Maybe. This is the benefit of a robust ecosystem of nonprofit citizen organizations that can circulate that expertise and the power of those contacts to people with fewer advantages. Think of it as progressive taxation of social capital: the more connected you are, the more obligated to pay that social wealth forward.

A final fear is that when amateurs get organized they can get coopted by the powers of the status quo. But if so, reconstitute: Mark Meckler, who co-founded the Tea Party Patriots as a political amateur and an independent, found that his original network was hardening into a rigid GOP interest group. So he left and started Citizens for Self-Governance, which has a conservative bent but is dedicated to getting people from left and right to address issues like criminal justice in more creative, orthogonal ways than our politics typically allows.

Recently I came upon a billboard by a congested highway. "You're not stuck in traffic," it said. You are traffic." We aren't stuck in sclerotic government and extractive politics. We are these things. Our actions and omissions contribute to the conditions we decry. Or, to put it in positive terms: if we make the little shifts in mindset and habit to reclaim civic life, they will compound into contagion. We are the renewal of self-government we yearn for. That may sound like Obama '08 -- but it's also Reagan '80.

Citizenship, in the end, is too important to be left to professionals. It's time for us all to be trustees, of our libraries and every other part of public life. It's time to democratize democracy again.

Saturday
May262012

Thoughts on Free Market Economics

Free Market Economics made America an economic superpower that for at least two centuries provided subsequent generations of Americans more opportunities and higher standards of living. An erosion of our free markets through government intervention is at the heart of America’s current economic decline, stagnating jobs, and spiraling debt and deficits. Failures in government programs and government-controlled financial markets helped spark the worst financial crisis since the Great Depression. Further government interventions and takeovers have made this Great Recession longer and deeper. A renewed focus on free markets will lead to a more vibrant economy creating jobs and higher standards of living for future generations. (from Tea Party Patriots Mission Statement)

From Wikipedia with sources: Critics dispute the claim that in practice free markets create perfect competition, or even increase market competition over the long run. Whether the marketplace should be or is free is disputed; many assert that government intervention is necessary to remedy market failure that is held to be an inevitable result of absolute adherence to free market principles. These failures range from military services to roads, and some would argue, to health care. This is the central argument of those who argue for a mixed market, free at the base, but with government oversight to control social problems.

Critics of laissez-faire since Adam Smith[22] variously see the unregulated market as an impractical ideal or as a rhetorical device that puts the concepts of freedom and anti-protectionism at the service of vested wealthy interests, allowing them to attack labor laws and other protections of the working classes.[23]

Because no national economy in existence fully manifests the ideal of a free market as theorized by economists, some critics of the concept consider it to be a fantasy – outside of the bounds of reality in a complex system with opposing interests and different distributions of wealth.

What do you believe AND why?

 

Friday
May252012

By the Numbers

$137 million: Top CEO pay

$43,963.64: Top CEO pay per hour

9,096 years: Time it would take a worker at minimum wage to make that much.

3,489 years: Time it would take a worker at the median salary of $39,312 to make that much.

This is the highest mark since the Associated Press started looking at compensation numbers back in 2006. Meanwhile - wages for working people have barely budged.

Are Wall Street bankers, oil and corporate executives really worth that much money?  Should they be paid hundreds of times more than doctors, scientists, or even teachers?

From Thom Hartmann and Winston-Salem Journal

Thursday
May242012

Wall Street Lessons

1. Facebook may have hidden information about weak revenue growth: According to one lawsuit launched since the company went public, Facebook “concealed crucial information” regarding weak revenue growth, failing to disclose a revised revenue forecast, much like Wall Street banks failed to provide key information about mortgage securities they were peddling before the financial crisis.

2. Morgan Stanley alerted “preferred” investors to Facebook’s poor growth forecasts: Facebook’s Wall Street underwriters are facing scrutiny from regulators for only alerting certain “preferred” investors about Facebook’s declining revenue stream, leaving many potential shareholders in the dark.

3. Facebook stock dropped, Wall Street got rich: Facebook stock plummeted on its second day of trading and has continued its decline since, but Morgan Stanley and the other underwriters are still turning massive profits by “shorting” its stock. “In fact,” Fortune’s Steven Gandel wrote, “Morgan Stanley and the other banks who were selling Facebook shares to the public were positioned to make more money the lower Facebook’s shares went.” As of Tuesday, the group of Wall Street banks that underwrote the IPO could have topped more than $450 million in profits — on top of more than $170 million in underwriting fees.

4. Facebook will dodge billions in taxes after its IPO: Corporate tax law allows companies that issue stock options to make huge deductions to their tax liabilities, helping Facebook avoid $16 billion in taxes. CEO Mark Zuckerberg could possibly never pay taxes again, using a series of loopholes to avoid them after the initial hit he’ll take after selling shares.

5. Facebook is spending big on politics: Just like the Wall Street banks and other big companies that spend huge amounts of cash lobbying Washington, Facebook jumped into the fray, giving $119,000 in donations to lawmakers through March 31. The money went to leaders of both parties and those lawmakers who “serve on House and Senate committees that handle Internet and online privacy issues.”

From Travis Waldron and Pat Garofalo