The Best Congress Money Can Buy?

Apparently, the last minute legislation that the Congress approved contains a few special interest goodies, mainly for the financial industry, including one that defers any income earned overseas from corporate taxation so long as the money remains outside the USA and one that benefits Goldman Sachs especially. So, at a time when everyone’s Social Security payroll tax deductions go up two percent, a good $1000 a year for the average family, financial America gets a continued tax break.

Not that this surprises me in the least, because we have the very best Congress money can buy, and we have it because the reformers of the past century were successful. It’s an excellent example of how the best intentions can have the worst results, a real-life political example of the road to Hell being paved with good intentions. It’s also an example of what can happen when good ideas are carried to extremes.

Many years ago, when I was a young and more idealistic Congressional staffer, political parties really mattered. They were more than affiliation labels, which is what they’ve largely become today; they were a source of political power. They were significant funding sources, especially compared to today, and there weren’t that many other organizations, except perhaps unions, that had that kind of influence over members of Congress, although technically both unions and corporations were prohibited from direct and indirect contributions to candidates.

Because enforcing these prohibitions and other campaign laws was difficult, in 1971, Congress passed the Federal Election Campaign Act, requiring stringent disclosure requirements. Then following Watergate and reports of serious financial abuses in the 1972 Presidential campaign, Congress amended FECA in 1974 and set limits on contributions by individuals, political parties and PACs. One of the more important provisions was that which limited national party contributions to $5,000 per election to candidates for the House of Representatives and $43,000 to Senatorial candidates.

With the reduction in funds from national and local political parties and the prohibition and increasing scrutiny of moneys that had formerly still passed under the table, and with the aid of the development of computerization, most candidates and federal elected officials began to build independent fundraising and electoral support organizations, and, in effect, corporations turned a blind eye to scores of their executives contributing, technically in a legal fashion, to campaigns of those who favored corporate interests.

Then in 2010, two court decisions, Citizens United and SpeechNow, changed everything. Together, the two decisions, essentially on free speech grounds, removed the limits on the ability of organizations that accepted corporate or union money from running electioneering communications and held that Congress could not limit donations to organizations that only made independent expenditures, that is, expenditures that were “uncoordinated” with a candidate’s campaign. As a result, anyone could spend any amount of money on advertising for or against any political issue and against any candidate, or for any candidate, provided there was no communication or coordination with the candidate. Add to that the fact that, of “regular” contributions to candidates, roughly 50% of campaign contributions come from large individual donors, and it’s difficult not to see why the financial community has a disproportionate influence on legislation… and gets special tax breaks.

What’s overlooked, however, with all the money issues, is a second issue – that of carrying good ideas to extremes. The Citizens United and SpeechNow decisions essentially rested on the premise that restricting expression of opinion through restricting campaign-related advertising was unconstitutional because it restricted free speech under the First Amendment. No one wants free speech restricted, but what about the problem of my free speech – or yours – being drowned out by hundreds of millions of dollars of corporate paid advertising? Isn’t that a de facto restriction of free speech?

The same issue is raised by the question of restriction of assault weapons. Does the right to bear arms under the Second Amendment allow others to cut short my pursuit of life, liberty, and happiness – or that of innocent school children?

As we are seeing – and some seem to refuse to see – carrying principles to extremes can have unintended, and dangerous, consequences. But then, that’s true of carrying anything to extremes, a fact of which tea party members and ultra-leftists remain blissfully unaware.

The Waste of “Progress”

This semester my wife’s university “upgraded” its computer system. The email speed and storage is improved. Pretty much everything is un-improved… or worse. As the head of the voice and opera program, my wife has to keep tabs on the schedules of a good hundred or more students. The former system allowed her to access multiple class schedules at once, allowing her to assure that students were registered in the right sections, which is always a problem, because the section numbers refer to the professors and the levels, and the registrar’s office seems to think that any professor can teach any student individual voice lessons and has a habit of assigning some students randomly – even when the students know and present the right section numbers. The new system only allows access to one section at a time, which more than doubles the time it takes her to make sure students are assigned where they belong. The old system allowed her to see whether an email had been opened, very useful in determining whether students and colleagues actually read what had been sent. The new system does not. In addition, the new system is different enough that it takes time to learn all the differences in necessary features. The verdict? A lot of lost time for everyone for little improvement overall, and significant drawbacks for people with administrative duties.

This isn’t limited to academia. At least every month, if not more often, when I’m talking with my editor and ask for information, it takes longer, because the computer system has been changed or “up-graded.” I asked other editors at the publisher… and they all rolled their eyes, not at my editor, but because they have noticed the same thing. Now… none of them can describe any aspect of the changes that makes their lives easier, but the changes go on and on.

I’ve noted, in past blogs, the continual changes in the Microsoft Word program, the vast majority of which merely add complexity for the sake of adding features… and some of which, such as the grammar checker, are so much worse than previous versions that using it will actually make bad prose awful and good prose far worse. And to top it off, you can’t turn off the grammar checker without turning off the spellchecker. Now… I understand that the latest version of Windows is going to smartphone icons, which will make using Windows easier for all the people who really don’t use it for anything particularly serious and add time and frustration to those of us who are tied, for occupational reasons, to Word and Windows. Another example of the hideous combination of American industry’s “one-size-fits-all” attitude and the need for a continuous illusion of progress.

I don’t mind true improvements in technology… but new “upgraded” features that do the same thing as older versions and new interfaces that don’t improve function, but still have to be learned, are a waste… and they’re anything but progress. In fact, they’re worse, because they present the illusion of progress. They also impose unnecessary costs on business and users because updating is required in order for “my” computer to read “your” files and documents, and the updates make lots of money for Microsoft and other vendors, but usually don’t generate commensurate income for most computer users.

Yet almost anyone who complains about these illusions of progress is considered a dinosaur or a troglodyte.

Congressional “Leadership”

John Boehner has now passed, if that is the appropriate term, Nancy Pelosi, in public opinion as the most ineffective and least well-liked member of either Congressional or Administration political leaders. Although Speaker Boehner is far from my most favorite politician – the term “favorite politician” being an oxymoron for me – the current disfavor with his actions and behavior is not entirely of his own making. It is, in fact, the result of a Republican party that seems to have forgotten – or wishes to ignore – both the role of government and the role of the Congress in making government work.

Again, I’m not going to blame the Republican party entirely, because the same attitude exists, if to somewhat lesser degree, among the Democratic Party. The fact that the attitude is less virulent among Democrats has nothing to do with virtue, but because, at this point in history, the Democrats embrace a wider constituency and have to look at a slightly wider range of alternatives in order to maintain what power they have, while the Republican Party has essentially divested itself of all who are fiscal and structural conservatives but who oppose the more fanatic aspects of the GOP true believers and certainly all moderates.

The result is that the GOP has become the “party of NO” – no tax increases, no abortion, no immigration, no gun control, no health care for the working poor, no corporate taxes, no unions, no equal economic rights for minorities and women, no gay marriage, not to mention denial of global warming and evolution. At the same time, much of the Democratic Party believes that almost any new government program is a good idea, particularly where the disadvantaged are concerned. Neither outlook is viable.

No matter how many poor and disadvantaged there are, even if we confiscated all the wealth and income of the top two percent, as I’ve pointed out before, it wouldn’t support government for a year. Government programs can’t expand, not unless other government programs are eliminated or curtailed. Right now, we can’t even fund the ones we have, but that’s because, in the past, both parties have agreed on taxes that were too low to support the programs that Congress had already created. Likewise, the mindset of denying reality that underlies much of the GOP agenda won’t work.

But Boehner is in an impossible position. The GOP essentially won’t compromise on taxes, and no compromise is possible without that. Obama has offered some compromise, but the GOP wouldn’t even accept Boehner’s alternative tax increase just on families making over one million dollars a year, let alone Obama’s compromise of $400,000 [incidentally, that’s just about the cut-off for the top one percent]. The fact that Boehner won’t even call the House into session unless the Senate acts, despite the fact that the House could take up an already Senate-passed bill and amend it, is another indication of his inability to pass anything remotely resembling a compromise and his unwillingness to admit it.

So… unless Obama caves in to the GOP, which looks unlikely, or the GOP looks at reality, which is equally unlikely in the next few days, going over the fiscal cliff looks most probable, although I, and most Americans, I suspect, would prefer less excitement.

Education: Haves and Have-Nots

Last Sunday, The New York Times had a front-page story on the problems faced by students from economically disadvantaged backgrounds. While the story highlighted the specific problems of three minority females, my wife the university professor sees the same problems played out by white students in a state university with a very small minority population. Despite an apparent proliferation of loan and aid programs for students of modest means or less, the graduation gap between economically poor students and those of more affluent means is now wider than it was thirty years ago. Although the graduation rates of most ethnic/economic subgroups have improved, the rates for those of means have improved far more than that of those from poorer backgrounds.

Why has this happened? There are a number of reasons, and the Times article, frankly, didn’t emphasize nearly enough some of the root causes. The principal reason, from what my wife and I see, is that the growth of tuition has outstripped the growth of available grants and scholarships. The reason for the growth of tuition at state universities is not, contrary to popular opinion, because of high salaries for full-time faculty, not at a time when most state institutions have been freezing salaries or holding raises to one or two percent, or reducing full-time professors and replacing them with part-time adjunct faculty, but because for almost a generation, state legislatures have been reducing the funding of their public institutions at the same time as enrollments have continued to increase. Higher enrollments require more buildings and larger classes, or more classes taught by less qualified instructors… and, most important, higher tuition.

At my wife’s university, and at all the public institutions in the state, funds for scholarships and grants, even federal grants, have not kept up with the cost of tuition. If colleges and universities offer full-tuition and room-and-board scholarships, then the number of available scholarships goes down as tuition rises. If they offer the same number of scholarships, then those scholarships no longer cover tuition and room-and-board. Either way, that means that economically disadvantaged students must either borrow funds or find part-time or full-time work. My wife has watched student after student become swamped with debt or spending so much time working that they cannot spend the time to study and to succeed academically. In addition, all too many have other problems created by their past, such as poor study habits and even worse judgment. More affluent students also have these problems, but they often have personal safety nets, such as parents who can support them while they waste too much time learning with bad study habits and behavior that detracts from academic success.

In addition, in many fields, merely taking classroom courses isn’t enough for future success. For example, in the hard sciences, students need to take laboratory courses, and those are invariably later in the day – and often students who work find themselves in an impossible situation. If they try to follow an educational path that would pay more in the future, they can’t work the hours they need to pay for that education, yet taking a more “standard” curricula ends up giving them a degree with a major in a field that is already glutted. The majority of students who succeed in music and the performing arts – and many do, despite the rhetoric – are those who not only take the classes, but who do all the extra activities, which include performing and rehearsing long hours, often without credit. This becomes almost impossible for students who are entirely self-supporting, except for the one or two that come along every few years who are truly brilliant and gifted, and even for them, it is close to impossible.

But each year the situation has become worse as the legislature funds less and less, and tuition climbs, and professors’ incomes are frozen, and more adjuncts are hired, and poorer students work longer and longer hours and get deeper and deeper in debt.

All of this doesn’t even take into account the fact that primary and secondary schools are failing to instill certain basic skills required for both academic and occupational success. When more than a third of all students graduating from secondary schools do not have the writing skills to compose – without electronic aids – a single coherent paragraph, and when the majority lack any semblance of analytical skills, it’s no wonder that students who are preoccupied with finding the money to even attend college are dropping out or failing in huge numbers.

But the great debate remains about how federal and state taxes are too high.

Rhetoric and Reality: The Fiscal Cliff

Years and years ago, back when I was actively involved in national politics, a scholar of politics made the observation that, “Where you stand on anything depends on where you sit.” The converse is also true, in that the positions one takes reveal the true nature of one’s views.

The “negotiations” surrounding the “fiscal cliff” illustrate the above point fairly clearly. The positions taken by each side do indeed reveal where each side sits, so to speak, and whom they represent, regardless of the window dressing of the rhetoric thrown out by each side. The Democrats are demanding that the “rich” pay more in taxes. Interestingly enough, their definition of “rich” includes all of what has historically called the upper middle class and even a fraction of the mid-middle class, i.e., moderately salaried two-earner families in high-cost-of-living cities. The definition of “rich” has been muddied over time by inflation, but consider that a family income of $42,000 in 1970 is equivalent to more than $250,000 today, yet in 1970, forty percent of all families made more than $42,000. Today, only 2% make more than $250,000. President Obama classifies those in the top 2% as the rich, but those in the ninety-ninth percentile have family incomes of between $250,000 and $350,000, and that one percent pays ten percent of all federal income taxes. Well-off certainly, but rich? All this does suggest that Obama and the Democrats, rhetoric aside, are out not only to soak the rich, but also to soak the upper middle class.

The Republicans, of course, aren’t exactly blameless. For all their rhetoric about controlling spending, they haven’t. In fact, they’ve more than helped it along, and then they’ve coped with the erosive power of inflation by simply pushing for lower tax rates. After all, in the end, what matters isn’t what you make, but what you keep. So, as inflation has decreased the purchasing power of the dollar, so that the real income of most families is only some 60% of what it would have been without inflation, federal income tax levels on the top ten percent, and especially on the top one percent, have been more than halved since the 1950s. The result? Although all income levels have suffered in loss of comparative purchasing power, the greatest burden has fallen on those in the middle two quintiles of income, what generally might be referred to as the working class, because their tax rates have not decreased as much as those with higher incomes, and because federal programs have tended to cover most of the impact on the very poorest. The Republicans’ “Plan B” was even more deceptive in that, while it would have protected the upper middle class from a tax increase, it not only did that, but it would have removed the few limitations that do exist on restricting tax exemptions for the very wealthy… and Boehner couldn’t even get the enough Republicans to support that.

When all the math and tax policies are considered, the politicians have been paying for federal programs through deficit spending that has reduced the purchasing power of all incomes, although, like it or not, those families in the lower 50% of income only pay 3% or so of federal income tax. The Democrats have done their best to shield the very poor, because programs such as food stamps are essentially indexed against inflation, and the Republicans have done their best to shield the very richest one percent, and continue to do so, even with the fiscal cliff looming, and everyone in between has taken a hit of some degree… and both Obama and Boehner are holding out in the fiscal cliff negotiations for the best deal they can get for the very rich and the very poor – and if they do come to an agreement, they’ll call it a benefit for the middle class.