The horizon is not so far as we can see, but as far as we can imagine

Month: January 2021

How Will Biden Rule Now That Democrats Control Congress?

So, Democrats have bare majorities in both the House and Senate, and they have the White House. They don’t have the Supreme Court.

Because the margin is so low, the people who will rule are those willing to cross the aisle to work with Republicans. Pelosi is fairly good at enforcing discipline, but Schumer is not, so we’re back into an era where right-wing Democrats will have a veto on a lot of legislation, as will the Supreme Court.

Because Biden is conservative in the psychological sense, he is unlikely to pack the Supreme Court unless they cross him in a big way, but because of the time-lag between when legislation is passed and when the Supreme Court strikes down the parts it doesn’t like, it’s unlikely he’ll have the emotional impetus to tackle the Supreme Court before the 2022 elections.

There is good news. $2,000 checks have become Democratic consensus, and they’re likely to pass. I do expect Biden to be more competent administratively, since while lazy, he will hire people who are at least capable of getting out of bureaucrats’ way and letting them do their jobs. (We’re not talking actual competence in most cases, remember how the Obama administration couldn’t handle the Obamacare roll-out. But at least they shouldn’t be throwing mail sorting machines into the garbage and so on. Little deliberate sabotage.)

The Biden environmental team is the one group that activists seem actually happy about. I’m still leery on this, given the Obama/Biden record on fracking and Biden’s statements about the issue, but I think if there’s one area that is likely to be better than one would expect given Biden’s record it’s environmental issues.

This is buttressed by the fact that the House rules waive Pay-Go for two areas:  Covid and the environment. AOC and the Squad have claimed credit, but I think the real credit goes to Biden; these are the two areas he seems serious about and Pelosi does usually cooperate with Democratic Presidential agendas.

I would think this won’t mean anything too radical, but we can expect that parks and reserves will be protected and expanded, pollution rules likewise, and endangered species lists taken seriously. Serious subsidies for renewable energy seem likely. It is possible we may get a green rollout across the federal civil service, which is a bigger deal than it seems, as it covers a lot of buildings and vehicles and it helps set up a domestic market for green firms if handled properly.

Biden’s other priority seems to be Covid. I don’t know how serious or competent he will be, but the current rollout of vaccines has been pathetic. A proper mobilization, if necessary using the military and the National Guard, would make a big difference. It’s clear that the US isn’t going to get past Covid without mass vaccination, as US states won’t do proper lockdown, track and trace, or provide proper support to people who stay home.

The issue here is whether Biden and Pelosi will provide enough economic stimulus and support to create a good economy so that Democrats keep the Senate and House in 2022. If they run as much as possible through the Covid and environmental pay-go exception, then the answer may be yes, but the insane opposition from centrist economists and wonks to the $2,000 check shows that means-testing and economic throttling is still Democratic party orthodoxy. They just don’t believe in giving everyone money, bullying the Fed into keeping interest rates low, and letting the economy roar.
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If they give into the neoliberal tendencies of these apparatchniks, Biden will lose the House and probably the Senate in 2022, get impeached, and be a lame duck from 2023 on.

There’s reason to believe this is what they’ll do, simply because they still insisted on putting in the pay-go restrictions. Why have them at all, unless you really believe in them and want to use them to throttle spending on anything you don’t want (like Medicare for all)? By attaching that rule, Democrats have indicated that they’re not really interesting large programs which will have a huge economic effect and ensure they retain control of the House and Senate.

I hope Biden is a good President, and better than I expect. Realistically, he’ll be awful in a lot of ways, especially in foreign affairs and civil liberties. We can hope that he’s good on the environment, handles Covid better than Trump, and runs an economy that doesn’t suck.

But I suspect he won’t have the guts to do what is necessary. He won’t forgive 50K in student debt, for example. He’s not a radical, he’s been one of the key implementers of neoliberalism over the last 50 years, and he’s unlikely to go hard against its orthodoxy. He’s willing to act on environmental issues because neoliberalism is finally coming around to realizing they should do something about that. That “something” is won’t be enough, and they plan on making the peons pay for it instead of rich people, but it’s “something.”

Otherwise, Biden is still a means-testing neoliberal who thinks that if someone is poor they deserve to be poor, and that the rich are rich because they deserve to be rich.

So he’s likely to not do enough, and become a lame duck in 2023.


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Georgia State Elections

I don’t know who will win. I would prefer the Democrats do so that Biden can govern a bit more and because McConnell truly is awful.

Anyway, use comments to discuss the runoff, results, consequences, and so on.

Terrible Assange Extradition Ruling for Press Freedom

We have a brilliantly authoritarian ruling on the Assange extradition case. The judge (who was endlessly hostile to Assange) ruled he couldn’t be extradited because of his bad health, but said that none of the press freedom arguments worked.

Now this is good news for Assange, but it is terrible news for press freedom. If the judge had approved the extradition of Assange, he would have appealed, and there is a very good chance for a reversal on appeal. Assange isn’t a US citizen; the US has no jurisdiction, and he was clearly acting as a publisher through the entire sequence.

The Australian journalists’ union sums this up well:

MEAA, the union for Australian journalists, welcomes today’s decision by a British judge to prevent the extradition to the United States of our member Julian Assange and calls on the US government to now drop his prosecution.

The court ruled against extradition on health grounds, accepting medical evidence that Assange would be at risk in US custody.

However, journalists everywhere should be concerned at the hostile manner in which the court dismissed all defence arguments related to press freedom.

“Today’s court ruling is a huge relief for Julian, his partner and family, his legal team and his supporters around the world,” said MEAA Media Federal President Marcus Strom.

“Julian has suffered a ten-year ordeal for trying to bring information of public interest to the light of day, and it has had an immense impact on his mental and physical health.

“But we are dismayed that the judge showed no concern for press freedom in any of her comments today, and effectively accepted the US arguments that journalists can be prosecuted for exposing war crimes and other government secrets, and for protecting their sources.

“The stories for which he was being prosecuted were published by WikiLeaks a decade ago and revealed war crimes and other shameful actions by the United States government. They were clearly in the public interest.

“The case against Assange has always been politically motivated with the intent of curtailing free speech, criminalising journalism and sending a clear message to future whistleblowers and publishers that they too will be punished if they step out of line.”

MEAA now calls on the US government to drop all charges against Julian Assange and for the Australian government to expedite his safe passage to Australia if that is his wish.

This is a brilliant way to paint Assange guilty of a crime, who is just being let off for sympathy, when he is not guilty (or if he is, so are hundreds of other journalists who have reported on leaked or hacked data from “dubious” people). The US may be appeal, so it’s not clear whether (as of the time of writing) Assange will go free.

At any rate, mission accomplished: An evil law (The Official Secrets Act) is not declared a dead letter by British courts and so can be used as a cudgel in the future. Assange is a broken man; a shadow of himself, and a warning to anyone else who would reveal American war crimes or that the DNC colluded to elect a specific candidate (Clinton) against another candidate (Sanders.)

And no, I don’t give even one shit who hacked the info: It was in the public interest and the public had and has a right to know about American war crimes and Democratic party election fixing.


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Week-end Wrap – Political Economy – January 3, 2021

Week-end Wrap – Political Economy – January 3, 2021

by Tony Wikrent

How the Police Killed Breonna Taylor

[New York Times, via Naked Capitalism 12-31-20]

“The Times’s visual investigation team built a 3-D model of the scene and pieced together critical sequences of events to show how poor planning and shoddy police work led to a fatal outcome.”

A stunning visualization of the police raid, including footage of investigation interviews with officers. The ineptitude uncovered is gross and flagrant. Only the most biased and pro-authoritarian can fail to see the incident as a massive over-reaction by police who were on some sort of psychological thrill ride based on being able to actually shoot at a live target.

The Georgia Senate Race

Perdue’s Time as Dollar General CEO Marked by Charges of Wage Theft, Race and Sex Discrimination

[Capital and Main, via LA Progressive 12-31-2020]

Dollar General, which he ran between 2003 and 2007, rests on a business model of offering low-cost goods at rock-bottom prices while paying workers poorly. The stores, ubiquitous in low-income neighborhoods, are generally understaffed and have become magnets for crime, according to a recent investigation. The corporate dictum that wages remain at 5% of gross sales “placed us at the bottom of a low-paying industry,” Cal Turner Jr., the son of Dollar General’s founder, told ProPublica.

Perdue presided over a more than 30-fold increase in the number of employee lawsuits filed against the company, according to a Capital & Main review of court filings. While he worked at the firm, 2,494 individual employment cases were filed charging the company with gender and racial discrimination, rampant wage theft, failure to provide medical leave and other workplace violations. In the four years leading up to Perdue taking the helm, 76 employment cases were filed in federal court.

In a just society — such as christianists claim to desire — corporate leaders like Purdue would have been curbed, broken, bankrupted and punished by the legal system, not elevated to the highest public offices in the republic. 

Strategic Political Economy

Neoliberal Champion Larry Summers Opens Mouth, Inserts Both Feet

Matt Taibbi, December 28, 2020

Lawrence Summers, the former Treasury Secretary under Bill Clinton, director of the National Economic Council under Barack Obama, president of Harvard, and Chief Economist at the World Bank, wrote a post-Christmas editorial for Bloomberg entitled, “Trump’s $2000 Stimulus Checks are a Big Mistake.” …The genesis of this Summers article is a perfect tale in microcosm about how America’s intellectual elite manages to lose elections to people like Donald Trump. It’s a two-step error. First, they put people like Summers in charge of economic policies. Then, they let them talk in public….

Of course, these same people often believe in jaw-droppingly enormous levels of public aid. Think of the $20 billion in taxpayer funds that went to rescue currency traders in 1995 (presented in the media as a bailout of “Mexico”), the massive IMF bailouts of Asia and Russia in the late nineties, and especially the multitrillion-dollar Fed-fueled rescues of the finance sector both after 2008, and now (“We’re not going to run out of ammunition,” explained Fed chief Jerome Powell). Other examples include giving companies like Goldman, Sachs 100 cents on the dollar on debts owed them by AIG in that bailout, or the $3.625 billion private intervention to save one crackpot hedge fund called Long Term Capital Management in 1998.

The operating principle in most of those cases was that financial institutions must not be allowed to take crippling losses, even if those losses were the fault of the companies in question, because such a decision might trigger (pick one or more) “a chain reaction,” “catastrophic losses throughout the system,” “graver economic consequences,” the “spread” of investor “flu,” etc., etc.

The thinking of these experts changes, however, the instant the question shifts to rescuing individuals affected by something like the 2008 crash, or the current pandemic. Suddenly we learn that resources are scarce, and the commitment of public money to rescue mere People With Problems risks “moral hazard.”

Why Larry Summers MUST Believe $2,000 Checks Are A Bad Idea

Ian Welsh, December 29, 2020

Open Thread

Use the comments to discuss topics unrelated to recent posts.

Josh Hawley Moves to Become Trump’s Heir Presumptive

It’s traditional on New Year to either do a retrospective or a look forward. Let’s look forward to 2024.

Since the election, it has become conventional wisdom that Trump is defeated, and the “next” Trump will be more dangerous. I have been pointing this out from 2016 on, repeatedly: Even if Trump wanted to do all the things his critics feared, he was too incompetent to pull them off.

The person who isn’t Trump who is the most likely heir presumptive and the “actually dangerous” one is Josh Hawley.

First there is the fact that, along with Bernie Sanders, he was the primary person other than Trump pushing for a $2,000 check. His name was on that, all through the news. Trump’s final attempt to help the American people, and he was the champion.

Second, there is his move to force debate on whether to certify the election results.

You can think that this is bullshit, and still recognize that it is smart politics. About three-quarters of Republicans think that there was significant voter fraud

Hawley has now positioned himself as the champion of ordinary Americans and the only Senator willing to fight Trump’s doomed last stand.

He is the heir presumptive, and, at least at this point, it seems likely the only person who could beat in him the 2024 Republican primaries would be Trump himself.

As for the general, it seems most likely right now that Biden will fumble the economy, leaving a huge opening for another right-wing populist run.

Remember, until Covid, the economy was doing well. Trumponomics, as I noted in 2017, more-or-less worked. The UI payment increases and extensions were — and are — incredibly popular, and credited to Trump. If Biden’s economy isn’t as good as Trump’s before Covid, he (or Harris) is in for a world of hurt.

And in the tweet above, Hawley is running against Walmart. This is sheerest hypocrisy given he opposed a minimum wage increase in Missouri (which passed anyway), but it doesn’t matter; that won’t be remembered and this tweet will, especially if he says “I was wrong”, which he will.

AOC is Bernie’s heir, and Hawley seems to be moving into the position of Trump’s.


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