Hi.  Since the election corporate media has wallowed in proving that
new Democrats were elected because of  bread and butter issues.
Would that it were so. These essays well describe the critical need
for full-out, immediate engagement of those public demands.  These
issues and the war become obviously merged. It's a false dichotomy
and probably helpful, as the war can be ended without reforms, but
not vice-versa.  -Ed


http://www.thenation.com/docprint.mhtml?i=20070219&s=editors

The Nation
editorial (February 19, 2007 issue)

Which Side Are You On?

Rarely does the response to a State of the Union address create more
buzz than the presidential pontification itself. But that's what
happened with the sharp lesson in populist economics delivered by
Senator Jim Webb of Virginia. Webb's indictment of the Iraq War was
direct and powerful, but it was his use of the language of class
conflict in discussing domestic policy that really had the country
buzzing after January 23. Talk-radio host Laura Ingraham referred to
Webb's response, warning the National Review Institute Conservative
Summit, "The party that comes off as the party that represents the
American worker best is the party that wins in 2008."

Republicans are right to fear Webb's words. Blunt talk of America
"drifting apart along class lines" and the observation that "it takes
the average worker more than a year to make the money that his or her
boss makes in one day" connect with voters soured on the GOP, as even
George W. Bush implicitly acknowledged when he told a Wall Street crowd
a week later that corporate boards "need to pay attention"to executive
compensation. As proven by Webb's upset victory in November, and the
victories of Ohio's Sherrod Brown, Vermont's Bernie Sanders and
Montana's Jon Tester, candidates willing to break with the bosses can
draw working-class voters out of the clutches of moralizing
right-wingers and back into the Democratic fold.

Now Democrats need to prove with deeds that match Webb's rhetoric just
which side they're on. With moves to raise the minimum wage and tax Big
Oil, House Democrats have taken some significant steps. Senate
Democrats have done the same with efforts to raise taxes on executive
pay. But much more is possible.

Take the question of what to do about healthcare, our most critical
domestic issue. George W. Bush's answer in his speech was to tax
workers whose employers offer high-quality plans ("gold-plated" in
Bush's snide reference) in order to cover a small number of the
currently uninsured, while offering the wealthy yet another new tax
deduction if they buy their own plans.

The Democrats should counter Bush with a plan that's already backed by
seventy-eight House members, HR 676, the National Health Insurance Act,
introduced by Representatives John Conyers and Dennis Kucinich. Some
225 labor unions back the bill, which would expand Medicare to every US
resident. A tax on the top 5 percent of income earners, among other
measures, would pay for the program.

Too radical? Consider that in September, an ABC News/Kaiser Family
Foundation/USA Today survey found that 56 percent of Americans would
prefer a government-run universal healthcare system "like Medicare" to
our current system.

Or take the matter of education. The median income of workers with a BA
or higher is about double that of those with only a high school
diploma. But as Jeff Madrick noted here recently, thanks to rising
costs and inadequate aid, the march to higher graduation rates has
stalled in America as other countries have surpassed us. How should
Congress respond? It could start with the plan, proposed by Edward
Kennedy, chair of the Senate Committee on Health, Education, Labor and
Pensions, to forgive all college loans if graduates work in public
service for ten years.

There's more. How about dusting off legislation to deny corporations
tax deductions when executive compensation exceeds twenty-five times
the pay of the lowest-paid full-time worker? How about responding to
Bush's request for fast-track authority on free-trade agreements by
requiring the inclusion of labor, environmental and human rights
standards in any new deals?

Senator Webb invoked the example of Teddy Roosevelt's progressive
reforms in the early twentieth century. That's a good place for
Democrats to look for inspiration in turning Webb's message into
enthusiasm for their party in 2008. More important, they can begin work
now on an economic program that, to borrow Webb's phrase, will insure
that the benefits of our immense wealth are "properly shared among all
Americans."

***

http://select.nytimes.com/2007/02/05/opinion/05krugman.html?th&emc=th

The Green-Zoning of America

By PAUL KRUGMAN
Published: February 5, 2007
One of the best of the many recent books about the Iraq debacle is Rajiv
Chandrasekaran's "Imperial Life in the Emerald City." The book tells a tale
of hopes squandered in the name of politicization and privatization: key
jobs in Baghdad's Green Zone were assigned on the basis of loyalty rather
than know-how, while key functions were outsourced to private contractors.

Two recent reports in The New York Times serve as a reminder that the Bush
administration has brought the same corruption of governance to the home
front. Call it the Green-Zoning of America.
In the first article, The Times reported that a new executive order requires
that each agency contain a "regulatory policy office run by a political
appointee," a change that "strengthens the hand of the White House in
shaping rules that have, in the past, often been generated by civil servants
and scientific experts." Yesterday, The Times turned to the rapid growth of
federal contracting, fed "by a philosophy that encourages outsourcing almost
everything government does."

These are two different pieces of the same story: under the guise of
promoting a conservative agenda, the Bush administration has created a
supersized version of the 19th-century spoils system.

The blueprint for Bush-era governance was laid out in a January 2001
manifesto from the Heritage Foundation, titled "Taking Charge of Federal
Personnel." The manifesto's message, in brief, was that the professional
civil service should be regarded as the enemy of the new administration's
conservative agenda. And there's no question that Heritage's thinking
reflected that of many people on the Bush team.

How should the civil service be defeated? First and foremost, Heritage
demanded that politics take precedence over know-how: the new administration
"must make appointment decisions based on loyalty first and expertise
second."

Second, Heritage called for a big increase in outsourcing - "contracting out
as a management strategy." This would supposedly reduce costs, but it would
also have the desirable effect of reducing the total number of civil
servants.

The Bush administration energetically put these recommendations into effect.
Political loyalists were installed throughout the government, regardless of
qualifications. And the administration outsourced many government functions
previously considered too sensitive to privatize: yesterday's Times article
begins with the case of CACI International, a private contractor hired, in
spite of the obvious conflict of interest, to process cases of incompetence
and fraud by private contractors. A few years earlier, CACI provided
interrogators at Abu Ghraib.

The ostensible reason for politicizing and privatizing was to promote the
conservative ideal of smaller, more efficient government. But the
small-government rhetoric was never sincere: from Day 1, the administration
set out to create a vast new patronage machine.

Those political appointees chosen for their loyalty, not their expertise,
aren't very good at doing their proper jobs - as all the world learned after
Hurricane Katrina struck. But they have been very good at rewarding campaign
contributors, from energy companies that benefit from lax regulation of
pollution to pharmaceutical companies that got a Medicare program
systematically designed to protect their profits.

And the executive order described by The Times will make it even easier for
political appointees to overrule the professionals, tailoring government
regulations to suit the interests of companies that support the G.O.P. - or
to give lucrative contracts to people with the right connections.

Meanwhile, never mind the idea that outsourcing of government functions
should be used to promote competition and save money. The Times reports that
"fewer than half of all 'contract actions' - new contracts and payments
against existing contracts - are now subject to full and open competition,"
down from 79 percent in 2001. And many contractors are paid far more than it
would cost to do the job with government employees: those CACI workers
processing claims against other contractors cost the government $104 an
hour.

What's truly amazing is how far back we've slid in such a short time. The
modern civil service system dates back more than a century; in just six
years the Bush administration has managed to undo many of that system's
achievements. And the administration still has two years to go.



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