Tuesday, February 9, 2010

McCain anti-DSHEA Bill a Clear and Present Threat to Health Freedom

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Health Freedom Threats: Codex, FDA, Vaccinations, GMOs


McCain anti-DSHEA Bill a Clear and Present Threat to Health Freedom

Natural Solutions Foundation
The Voice of Global Health Freedom™
www.HealthFreedomUSA.org
www.GlobalHealthFreedom.org

02/05/10 UPDATE: Action Item to Educate the Senate Regarding the McCain Bill:
http://salsa.democracyinaction.org/o/568/t/1128/campaign.jsp?campaign_KEY=26714

Update: Bill filed as Senate Bill S 3002. Follow it at: http://www.thomas.gov and search for that bill number.
Update: http://www.healthfreedomusa.org/?p=4615#2

I re-post in full the February 3rd media release from the Natural Products Association regarding new threats to health freedom.

It was Constitutionalist Dr. Ron Paul (R-Texas) who described the FDA’s behavior as “an abuse of power…” and now failed presidential candidate John McCain lets us know where he stands: on the side of the power abusers and against the Dietary Supplement Health and Education Act of 1994 (DSHEA) which a unanimous Congress adopted to protect our access to high potency nutrients. With the suppression of wholesome, natural nutrition and natural remedies will come the preventable diseases of mal- and under-nutrition, a lower population and profits along the way.

The “Accepted Dietary Ingredient List” in the McCain bill is an especially troubling provision since such a code provision moves us away from our Common Law Right to access the foods we choose to a Civil Law (Codex Alimentarius) regulation of what we may choose. Under the Common Law what is not explicitly forbidden is allowed; under the Code, whatever is not explicitly permitted is forbidden. This “lawyer’s distinction” is of the greatest significance in preserving our Liberty. This provision could outlaw thousands of herbs, minerals and nutrients, just as similar European provisions are limiting dietary ingredient choice under the EU’s implementation of Codex.

Action Item: http://salsa.democracyinaction.org/o/568/t/1128/campaign.jsp?campaign_KEY=26714

The terms of this bill further the Globalist Eugenicidal Agenda (of the “Bigs” — Big Agribiz, Big Pharma, Big Finance, Big Govt…) in that they seek to treat dietary supplements, which are foods and therefore ought to be deemed safe if used as directed, as though they were toxins (while, of course, the agency treats the real dangers – GMOs, food additives, dangerous drugs, vaccines and industrial toxins as though they were perfectly safe). If they succeed, our best hope for safe foods and high potency nutrients could be gone.

Further, this bill needs to be seen in the context of the other fake “Safety” bill pending in the Senate, the The FDA Food Safety Modernization Act, S 510, which does “for” family farms and ranches, natural and community food production what the McCain bill does to dietary supplements: create restrictions that the “Bigs” can live with but which will drive ethical, local production out of the market. See: http://www.healthfreedomusa.org/?p=4014 for Sen Tom Harkin’s assurance this past November that DSHEA was not under attack. But now it appears to be under attack and we view McCain’s bill as part of a concerted effort to restrict Health Freedom. – RF

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February 3, 2010: New Legislation Poses Threat to DSHEA

At a press conference held earlier today, Sen. John McCain (R-Ariz.) announced that he would be introducing legislation that would amend the Dietary Supplement Health and Education Act (DSHEA) to give the U.S. Food and Drug Administration (FDA) additional powers over retailers and suppliers in the dietary supplements industry. The Natural Products Association is reviewing McCain’s bill, which is cosponsored by Sen. Byron Dorgan (D-N.D.), and offers this initial analysis regarding the impact of the legislation on the industry.

NPA will work aggressively to address this threat to the industry. The association will continue to keep its members informed and let them know how they can help protect their businesses.

Brief description of the provisions of the Dietary Supplement Safety Act of 2010

New Requirements from Suppliers to Retailers

Suppliers and retailers regardless of size all along the chain of commerce are required to “obtain adequate written evidence” from the seller that the product is registered as required. That evidence must be retained in a file available for inspection.

Adverse Event Reporting (AER)

Requires reporting of all adverse events, not just serious adverse events. In addition, a compilation of non-serious AERs must be submitted annually, and records must be maintained for three years.

“Accepted Dietary Ingredients” List

Mandates creation by the Secretary of a list of “Accepted Dietary Ingredients” to replace the current “in commerce pre-DSHEA” test.

New Dietary Ingredients (NDI)

NDIs are considered adulterated unless there is a history of use or evidence of its safety. Registrants shall maintain a “scientifically reasonable substantiation file” available for inspection by the Secretary of Health and Human Services. Registration required 75 days prior to market.

Recall Authority

Provides immediate recall authority to the Secretary upon determination that a supplement “would cause serious, adverse health consequences or death, or is adulterated or misbranded.” Companies subject to a recall have the right to challenge the order in an “informal hearing” within 10 days. At their own expense, retailers must notify customers of such recalls.

Registration of Dietary Supplement Facilities

Dietary supplement facilities shall register with the Secretary (required information includes name, address of all facilities, trade names, list of supplements, their ingredients, and labels). Registration is annual.

Read the complete bill here:
http://www.npainfo.org/clientuploads/regulatoryLegislative/2010%20Dietary%20Supplement%20Safety%20Bill.pdf

This entry also posted at: http://www.campaignforliberty.com/blog.php?view=32204
And: http://vitaminlawyerhealthfreedom.blogspot.com/2010/02/mccain-bill-poses-threat-to-dshea-and.html

Kucinich v. Greenwald on the Supreme Court’s Landmark Campaign Finance Ruling on Corporate Money

Democracy Now!

February 09, 2010
Supreme-court

Rep. Dennis Kucinich v. Glenn Greenwald on the Supreme Court’s Landmark Campaign Finance Ruling on Corporate Money

A new poll has found nearly two-thirds of respondents oppose the Supreme Court's recent ruling in Citizens United to allow corporations to spend unlimited amounts of money to elect and defeat candidates. Rep. Dennis Kucinich and Glenn Greenwald offer differing opinions on the controversial ruling.

AMY GOODMAN: On another issue, I wanted to ask you about the Supreme Court decision. You ran for president. You were part of the Democratic primary. In fact, wasn’t it true that ABC News stopped following you when they said you hadn’t raised enough money? I wanted to ask you about the Supreme Court decision opening the floodgates for corporate money in politics.

REP. DENNIS KUCINICH: We’re working on a constitutional amendment right now, Amy, that would address this—the core issues in not only the Citizens United case, but the Buckley v. Valeo case. Our government right now is like an auction, where policy is—goes to the highest bidder. And this pay-to-play environment is destructive of any hope that people could have to have their practical aspirations addressed by the government. You know, the idea that Wall Street is now moving its smart money over to the Republicans is quite instructive. The idea that health insurance interests could raise money during the very—for members of Congress, during the very time that legislation is before the Congress that would change the way that they do business, these are things that reflect on the danger to our democracy.

And I think this Citizens United case, which gave the corporations the ability to interfere in elections in a major way, through their money, puts us at risk of openly having a corporate-dominated government. Now it’s kind of a secret, I suppose, in some places. But it’s now—you know, once Citizens United was decided by the Supreme Court in the way it was, now it’s basically open season on anyone who challenges these corporate interests and a free pass for anyone who supports them. A real danger to our democratic tradition calls out for constitutional remedies, and there are many that are now being considered, and I’m certainly working on some.

AMY GOODMAN: Your response, Glenn Greenwald?

GLENN GREENWALD: Well, you know, it was interesting because I was—I agree with Congressman Kucinich completely with regard to the constitutional arguments he was making about the presidential assassination program. If you look at the Fifth Amendment, it really does say no person shall be deprived of life without due process. It says that in clear terms. To me, the First Amendment is just as clear, and it says Congress shall make no law abridging free speech. And as Justice Hugo Black said, I read that to mean Congress shall make no law abridging free speech.

So, I certainly agree that corporate dominance of our Congress—you know, Senator Durbin recently said the banks own the place, an extraordinary statement for the second-highest-ranking Democrat in the Senate to make. I think the corporate dominance of our political process is one of the two or three greatest threats we face. But I also think that whatever solutions we try and find for that need to be consistent with the clear constitutional prescriptions of the First Amendment, and allowing the government to ban or regulate corporations from speaking out on elections, to me, seems very problematic.

So I think there are ways around it. I think public financing of campaigns can equalize the playing field. I think some constitutional amendment might be viable, but I do think it’s a very difficult question constitutionally to allow the government to start saying who can speak about our elections and who can’t. So, I think the First Amendment needs to be just as honored as the Fifth Amendment when we talk about these issues.

AMY GOODMAN: Congress member Kucinich?

REP. DENNIS KUCINICH: Well, I would agree with Mr. Greenwald and also thank him for the three important articles he wrote in the wake of Dana Priest writing in the Washington Post about this assassination program.

With respect to corporate contributions, let’s take for example anyone who gets a contract from the government. Why should they be permitted to plow the money they get from taxpayers back into political contributions? Because since money is fungible, that is what would happen. There should be restrictions there. That would go a long way to stopping these interest groups from being able to compete for government contracts and then turn around and rewarding those who give them money. I mean, take, for example, the bailouts. You know, we have an—will have an unending bailout culture, if you can have Wall Street continuing to give money to politicians who will then vote for bailouts for them. When does it stop?

This is why the only remedy is constitutional. And certainly one of the factors that has to be in there is public financing. I mean, if you have public financing of campaigns, you have public ownership of the political process. You have private financing of campaigns, you have private ownership of the political process. So, again, we have to—we’re continuing in this experiment in government to decide what kind of government we want. Do we want government of the people? Do we want government of the corporations? Right now, with two Supreme Court rulings, we have moved towards the balance towards government of the corporations. This is something that Jefferson feared, something that Lincoln feared, something that Eisenhower warned about. And we should find out, in this time, in 2010, whether or not we truly believe that this Declaration of Independence and Constitution is a living testament or whether it’s just, you know, a document gathering dust in some place in antiquity.

AMY GOODMAN: Very quickly, in this last minute, Congress member Kucinich, the death of your close friend, Congress member Murtha.

REP. DENNIS KUCINICH: You know, when you see someone like John Murtha, who had the capacity to listen carefully and to watch carefully what was happening in Iraq and to come forward as he did in 2006 to change and to challenge the war, that was an important moment. Congressman Neil Abercrombie and I spent many long discussions with John Murtha talking to him about the war and expressing to him, in 2004, 2005, our deep concerns about the direction that the war had gone, and John Murtha listened carefully. And that really was the measure of Mr. Murtha.

I have to tell you, on a personal note, I mean, despite the fact that he and I may have had some, you know, fundamental differences of opinion about the great mass of money that went—that goes into the Department of Defense, he was someone—because of his openness, he was someone who was really loved by members of Congress. And my—[no audio]

AMY GOODMAN: We just lost Congress member Kucinich. But we’re going to go to break, and when we come back, we’re going to play a brief conversation I had with Congress member Murtha in 2006. It was about the killings in Haditha. It was about the war in Iraq. Congress member Kucinich, joining us from Ohio, and Glenn Greenwald, joining us on the phone, constitutional law attorney and legal blogger at Salon.com.

A Mulligan for Ethically Challenged GOP Rep?

MotherJones

Indiana Republican Rep. Steve Buyer formed the Frontier Foundation in 2003 to provide scholarships to students in his state—and since then his charity has raised an impressive $880,000 in corporate donations. Unfortunately, none of that money has found its way to needy undergrads. It has, however, paid for a lot of Buyer's swanky golf junkets. Speaking recently with CBS Evening News about his foundation, the nine-term congressman—a graduate of the Citadel with a degree in business administration and Frontier's "honorary chairman"—suggested that he "was so focused on making sure that we were legal, that I probably didn't pay as close attention as I should have on, quote, appearances."

And the appearances aren't pretty. After a thorough review of Frontier's tax filings, the government accountability organization Citizens for Responsibility and Ethics in Washington has recommended that the Internal Revenue Service (IRS) and the Office of Congressional Ethics (OCE) investigate Buyer and what they refer to as his "so-called charity." CREW alleges Buyer has used Frontier "to foot golf fundraisers at exclusive resorts where he hobnobs with corporate donors—who also contribute to his campaign committee and leadership [political action committee]." In 2008, the most recent year for which tax returns were available, the foundation wrote off over $25,000 in expenses for "meals" and "travel for fund-raising." These fundraising outings got the golf-loving Republican onto the links at Disney World, the Atlantis resort in the Bahamas, and the Phoenix-area Boulders resort.

Most of the $10,500 in donations that the foundation has made in its seven-year history went not to college scholarships but to the National Rifle Association and "a charity run by a pharmaceutical company lobbyist." And Buyer's family benefited too: both his son and daughter were paid to serve as directors at the charity, which until recently shared its headquarters with the congressman's campaign office. "It is hard to imagine something more callous than playing golf on the backs of poor students—at least one of whom surely could have gone to college on the money Frontier spent on Rep. Buyer's golf trips," CREW's director, Melanie Sloan, said in a statement.

And who were the lobbyists that Buyer was courting? According to analysis by the Center for Responsive Politics, the pharmaceutical industry—which is regulated by the Energy and Commerce Health Subcommittee, of which Buyer is a member—has been the congressman's second largest campaign contributor. Only health professionals like doctors have contributed more over the course of Buyer's political career. Buyer's son was also hired directly out of college to lobby for the Pharmaceutical Research and Manufacturing Association.

Details of the foundation's activities were unearthed by Indiana's Lafayette Journal and Constitution in October 2009—too late for Buyer to merit inclusion on CREW's annual list of the most corrupt lawmakers. Sloan told me that she is confident that IRS will take CREW's allegations seriously. But she has less faith that Buyer's colleagues on the OCE will hold him accountable. "I don't think Ethics will examine in depth if Buyer misused his seat on Energy and Commerce," she said.

Nor does there seem to be much in the way of public pressure on Buyer to step down. The day before CREW filed its complaints—and nearly three months since the congressman's phony foundation scandal first broke in Indiana—the Swing State Project published its latest 2010 election forecast for the fourth district of Indiana, which Buyer represents. Prediction: safe GOP hold.

Corbin Hiar is Mother Jones’ DC intern. For more of his stories, click here. He is also on Twitter.

Voices of the Uninsured

Tell 'The Nation': Voices of the Uninsured

By Various Contributors

February 9, 2010


Since the unlikely election of Scott Brown in Massachusetts, hardly a day goes by in Washington without a torrent of speculation on what loss of a filibuster-proof majority will mean for the healthcare reform legislation that both houses have already passed. But as the president recently noted, the intense focus on the process of moving the bill over the finish line has done much to obscure the actual human stakes of the policy being debated.

Particularly striking is the near-total absence of the voices of those most acutely affected by the capriciousness of our current healthcare system, the millions who have no insurance. Despite the fact that 30 million of these folks have arguably the largest stake in the legislative outcome, they're almost totally absent from the national conversation over its fate.

Here at The Nation, we have been working to right this in our own small way. We've spent the last two weeks searching for stories from the uninsured. Despite our chosen tools (Twitter and e-mail), or perhaps because of them, we received 185 responses from a diverse group of people. From recent college graduates, to struggling single parents, to recent retirees, the storytellers ranged vastly in age, background and occupation. However, a common thread held them all together: the anxiety and uncertainty that comes with being uninsured.

Many stories expressed great, unshakeable fear that one medical emergency would ruin them. "I would say my wife and I are one medical emergency away from losing everything, but actually I've pretty much resigned myself in my head to the reality that if I have a medical emergency I am going to die," says a used-book seller in California.

The responses included wide array of opinions and varied hopes for the future of healthcare reform, but what an overwhelming majority agreed upon was that the United States government, particularly Congress, had failed to represent them within the debate. "Why can't the general health and well-being of the American population be too big to fail? " asks one Massachusetts woman. Distraught and disappointed, many have given up on the possibility of change. "They are all out-of-touch, rich career politicians who care more about getting elected than if we die," says a woman from Ohio.

Ultimately, the full stories you'll find attached hope to bring this discussion back to where it belongs. We hope to ground the debate in the painful realities that people face every day: pre-existing conditions, inconceivably high premiums, medical bankruptcy and considerable pain. To root the conversation back in compassion and consideration for those most in need.

Perhaps by allowing these voices to be heard, they will become impossible to ignore.

***

In College and Out of Insurance

I haven't had health insurance since I was 18. I'm 23 now. My health started to take a turn for the worse around two to three years ago. I currently have many conditions--TMJ, tendonitis, spinal problems, poor eyesight, poor dental health, etc., and I almost never see doctors or dentists because they're so hard to afford on a student budget.

I once had insurance for three months but it was cancelled after I had trouble paying the premiums on time. Now I can't get insurance from anyone due to pre-existing conditions, and I've applied multiple times to every carrier on eHealthInsurance. There are no options for me in the US, except to pay out-of-pocket, which is wildly expensive. I can't even move to another country because I'm still in college.

I have been living with these conditions too long and I really don't want to do it anymore. I've been suicidal for a while and my one hope was health insurance reform (specifically the interim high-risk pools, ban on rescission, and the extension of maximum age on a family plan to 27). I've been happier for the past month since the Senate bill was passed, but stunningly, that all went away because of the sudden rise of Brown's support, which virtually no one saw coming. Politicians almost always defend lack of progress by citing how slow Congress moves and how it's not an institution that makes sudden and/or radical changes, but this election at least partially proves them wrong.

So my hope is almost completely gone and I don't want to continue living with these conditions.

J. Travis Rolko, 23
Ohio

A Member of the Country's Invisible Poor

In a letter sent to the White House:

I've been coping with chronic pain and autoimmune dysfunction throughout my life and, as it has with far too many others, it has become debilitating. An ever-increasing number of the population is living with these invisible illnesses. Due to the very nature of these symptoms that are hard to track and harder to see, medical care is seldom pursued or even available until one's quality of life is severely diminished. I reached that point years ago, once I was no longer covered by my parents' health plan. My husband and I live paycheck to paycheck, so insurance has never been an affordable option. Doctors can do little more than guess once the few tests I can afford fail to provide answers. Healthcare clinics and employee benefits are equally outrageous in price and too seldom available.

We are members of this country's invisible poor, hiding in plain sight as job-seekers and rent-payers who look the part of middle-class America but are struggling to buy groceries, much less medical care or insurance. In the current status quo, I am neither recognized as poor nor ill, but am living with the constantly increasing pressures of both. A healthcare system that takes into account not only affordability and availability but allows for the many different circumstances American citizens find themselves in can literally begin giving me, and those like me, our lives back.

My husband is currently laid off, and has been since December. I got significantly sicker during my last job (yet have no diagnosis). We cannot afford a vehicle (but have been consistently just above the poverty line), and have not had health check-ups in years (due to continually rising costs). We deserve, along with every citizen against whom there is a financial bias, to do more than survive; we are ready to thrive.

I've done mostly retail over the years with a stint in theatre as a stage manager. My last job was manager of a Hollywood Video in Fountain Valley, California. My husband is a writer-for-hire whose last job was the manager-on-duty at the Palm Springs Hilton. Finally, allow me to say that I'm very invested in healthcare reform. As frustrating as the process has been, I have to believe we can get something signed that at least gives us a platform to work from. Congress needs to stop buying into rhetoric, allowing things like a sixty-vote requirement, and pay more attention to policy than politics and simply care more about their constituents than their own asses.

Dorian Rhodes and Dave Rhodes, 41 and 50
California

Will You Stop Fighting, and Listen? We're Dying Out Here

Our son has been severely disabled since birth; he is wheelchair bound and cannot sit, stand or walk on his own. He is also developmentally handicapped. We have a $5 million lifetime insurance cap, and are about to hit it. My son is 11, and last Christmas (2008) he had an almost $600,000, thirty-day hospital stay. If that happens again, I'm doomed. Add to that almost $1500 a month in prescription food, $100 a month in diapers, wheelchairs, etc. and the costs are staggering. It is no wonder most bankruptcies are medical, and those folks have insurance.

We're dying out here, and the Congress wants to fight about... what are they fighting about again? I forget. Oh yeah, they're mostly fighting for the folks that pay them to be there: insurance companies. I sent my letter to President Obama and almost every member of the Senate, to no avail. With the announcements from Pelosi and the Supreme Court, I fear I am well and truly screwed.

I am, frankly, disgusted. Not just by the demise, but also by the way the Democratic "leadership" (and in the case of Senator Reid, I use that term quite loosely!) has conducted themselves in this matter. Having, first Joe Lieberman, and then Ben Nelson, and a parade of other Democrats hold the process hostage was disheartening, to say the least. The idea that somehow, we Democrats need a super-majority to fix a mess that a simple majority of Republicans created is just downright stupid. If Lieberman wants to filibuster, make him stand up on C-SPAN and read the phone book make him look like the ass that he is acting like. And start by taking his chairmanship away.

I fight with United Healthcare, and Ceridian (who manages our healthcare spending account) on a weekly basis, and I'm tired of it. Add to that the impending lifetime benefit cap, and the inability of me (and my family) to move from state to state--my Medicaid coverage is not portable!--and I'm trapped. On top of that, there is no consistency of coverage from policy to policy. So, for instance I work (this week) for Sun Microsystems. We have a defined set of benefits, as negotiated, and are actually self-insured (though the program is [mis]-managed by United Healthcare). But next week we are being taken over by Oracle. How will my coverage change? I have no idea. There is no basic level of coverage either mandated or provided by the federal government. So I have no idea what will happen.

I'm not panicked, yet, because Medicaid covers my son. But that's not portable, so should I get transferred to another state? He would fall out of Medicaid coverage, and would have to get on a waiting list for Medicaid waivers. Currently, the state of North Carolina is considering increasing the Medicaid co-pay to 30 percent. If I had to pay 30 percent of $600,000, it would ruin me.

We need single-payer. We need to remove the profit motive. As I've said for over a year now, this has not been correctly framed from the beginning. It is not healthcare reform. It is health insurance reform. Our healthcare is pretty darned good. Our insurance system is shameful. The former CEO of UnitedHealthGroup was paid $129M one year. one year. That's money that could have been spent on medical care. But it was wasted.

Obviously, I could go on and on and on forever. I've tried meeting with my Congressional representatives. Senator Kay Hagan "didn't have time" and Congressman David Price wasn't available until Contessa Brewer wanted to interview me on MSNBC, at which point he was magically available. Obviously last week's Supreme Court ruling will only make our Congressional representatives less available and less responsive to individual constituents so that they can pay better attention to corporate sponsors. We spin further and further out of control.

Have you had enough yet? Believe me, I have. But I have to fight on. I have no choice but to continue this fight until a solution is found that serves the needs of my son, because he cannot fight for himself.

David G. Simmons, 46
North Carolina

Why Couldn't My Tax Dollars Pay to Save My Stepfather's Life?

I lost my job a year ago, and I don't have health insurance. I'm 37. My stepdad did have private health insurance--he was healthy and fit, and paid hundreds of dollars a month. And when he did get sick with a rare cancer, we had to fight for every appointment and wait months for others. His cancer spread quickly and he died within several months, but I believe the insurance companies caused his death. His illness was treatable and he could have beaten it.

It's been a few years and I still miss him.

I actually hope the current version of the healthcare bill fails. I cannot afford insurance right now--and to be put on my husband's insurance will be over $300 a month, and that's with Kaiser Permanente; I haven't had good dealings with them in the past.

In any case, the bill currently punishes people with fines for not having insurance, and it's just wrong. It's a giveaway to the insurance companies, and that makes my blood boil. At the very least, we need a public option, but I'm a single-payer girl. I just refuse to believe that those moronic teabaggers are the majority opinion in this country. I know they aren't, but you'd think they were with all the attention they get. I'm also an "average Joe." I've worked all my life and paid taxes. I'm sickened (pun intended) that my tax dollars pay for war and death, and not saving people's lives, like my stepfather's.

Jennifer M., 37
California

Do the Right Thing--Start Leading, Stop Following Lobbyists

I'm a single mom on the verge of declaring medical bankruptcy. I was forced to sell my home. My son, now 17, and I live with my 89-year-old mother (illegally) in a retirement community. For the past year, we have shared a 10x10 bedroom roughly the size of my old walk-in closet. I have two college degrees and I am now working only fifteen hours a week as a church administrator. Due to a pre-existing chronic medical condition, I am not able to buy insurance (even if I could afford it). As a result, it is being left untreated.

I am absolutely dismayed with the Massachusetts election outcome and its potential ramifications for healthcare reform. Whether on moral/ethical grounds, as a human rights issue or viewed solely on the numbers, I do not understand how anyone could be opposed to healthcare reform in this country. If conservatives want to stay away from the "touchy/feely" views, fine. However, how can they not see the bottom line? The costs of no healthcare reform far outweigh the costs of the status quo. We have a failed system and it is affecting everyone.

I'd like to see Congress actually represent the people and not corporate America. I'd like to see Congress develop a spine, some ethics, locate their hearts and do the right thing. They all know what that is, but are all in bed with Big Pharma and the insurance industry and the fear of not getting re-elected outweighs everything else. We need healthcare reform and not a watered-down version rubber-stamped by the above. We need our elected officials to actually lead and stop following lobbyists.

Suzi Spagenberg, 49
California

We Need Real Protection

I've honestly suspected from the get-go that neither the conservatives nor the liberals really care about healthcare reform, and that both sides have done their best to silence the progressives, who do. Frankly, the more cynical part of me is not the least bit surprised. I find it train wreck level interesting, that at the first little excuse the Democrats start to drop even making an attempt at healthcare reform and run in the opposite direction.

As for my investment in healthcare reform, being working-class poor, it's a bit like asking someone on the Titanic if they feel invested in the ship's sinking. I'm in this boat so there's no way for me not to be invested. Last year my wife and I both came down sick at the same time. We were living in West Virginia at the time, and it was during the weeks of the big freeze, twenty below zero at night and zero during the day, and we both came down sick with what we suspected was a sinus infection. Our solution? Swallow enough symptom suppressors to be able to sleep, and enough to be able to work, and hope that it wouldn't get any worse.

I want Congress to pass the bill that is most likely to pass (sadly, I know that is the Senate version) and then use reconciliation to put the public option back in play, and if it fits within the boundaries to also put the individual mandate on a trigger so it would not kick in for at least ten years. Then they should prepare to be dogged by progressives until they perfect the legislation, so that it offers real protection and access to healthcare that doesn't turn into vaporcare the first time you try to use it.

RFT, 36
Texas

One Pretzel Hit Cost $500--This is Not the American Dream

I have healthcare. However, I recently took legal custody of my 11-year-old cousin, and because it's residential custody and not full, he is unable to be put under my insurance. His mother is on welfare. Before giving him up to my custody, she let his New Jersey Family Care insurance lapse. So right now we're waiting to see if we qualify to cover him. If we make too much money or don't jump through the proper flaming hoop, then my cousin will remain uninsured. He was recently hit in the eye with a pretzel while having lunch at school. It required an ER visit. I now have a bill of over $500.

The demise of healthcare scares me. I am a stay at home mom and paternal caretaker. Besides the 11-year-old, I have a 6-year-old autistic son and an aging, wheelchair-bound mom, who has been diabetic for over thirty-six years and is now on Medicare. One bad illness will bankrupt us for generations, and aid for my son's lifelong autism ends at age 22.

This is not the American dream. This isn't even basic compassion.

Shea Murphy, 35
New Jersey

The "Obscene Meanness" of America

After hearing Senator Jim Webb say that "The American people have spoken," when the Democrats lost the Massachusetts special election, I was so completely incensed that he or anyone could come to that conclusion, when the people of Massachusetts who have healthcare elected an anti-healthcare candidate.

My husband and I are educated, intelligent, unemployed and in our mid-40s. I am a writer and he is in commercial insurance. We used to rely on his employment to cover the entire family. He has been unemployed for more than a year. We could not afford the COBRA, and indeed can barely afford our mortgage. All other creditors are waiting in line until we get back on our feet, and I have several herniated disks. I live in pain and anxiously await a healthcare plan that will provide me with an opportunity to get the surgeries I need. My husband was raised in London and is so discouraged with what he calls the "obscene meanness" of our system. We have contemplated uprooting our entire lives, to move to England, just to get the surgeries I desperately need. It is difficult to understand how the American people can stand for this and how our politicians can come to the insane conclusions that we do not want it. Howard Dean seems to be the only person talking sense on the pop-culture news.

We have three adult children who are struggling for insurance. My 25-year-old son graduated from American University and lives and works full-time in DC and is covered for now, but he is planning to leave work to get his masters. He has had major back surgery (scoliosis) and can never afford to go without insurance. My 23-year-old daughter works part-time at an advertising agency and part-time pursuing her career as an artist (for which she studied at Boston University). My 21-year-old son is in school at American University, covered for now, but also had major back surgery (stenosis) and cannot go without insurance.

Again, we could not afford the COBRA for ourselves, let alone to help the kids, even if we were allowed to cover them. It's killing us.

Angela Combs, 47
California

Beside Myself, Waiting for Change

I was diagnosed with throat cancer on Tuesday, January 12. I am unemployed and have no health insurance. I intend to get the care I need. My doctor has not turned me down, nor has the hospital for treatment. I anticipate the bills will begin soon and I will not be able to pay them. Prognosis is 80/20 for recovery with radiation and chemotherapy. I have a notion I am going to face something nastier than cancer in my life: bill collectors. So it begins.

My occupation used to be an administrative assistant. The last two positions that paid well were transferred to different states so my job was gone with them. At 59, with the tight job market, I am not getting any offers. And now, with this diagnosis, there really isn't going to be a job.

I've been beside myself with the Democrats not coming together at once to pass healthcare, and I am livid that just a few people held it hostage. I've tried to do my share by signing petitions and beating up Evan Bayh. This was before I knew I was ill. I think Congress should pass some scrap of something. I wanted the public option. I also hoped they would lower Medicare eligibility to 55. That was selfish, of course. Still, they must try to do something, if only to have it to build upon. They are crazy to think this will come around again this generation.

Sarah Hurt, 59
Indiana

Get Tough For God's Sake and Ours

My brother is losing his COBRA on February 28. He recently was hospitalized for a heart attack and stroke.

It is difficult for my brother to type since his stroke. I have been researching to find him insurance. There is nothing affordable since he is out of work. Part of the reason he had his stroke/heart attack was because he had cut back on his medication due to finances. His cardiologist told me he keeps seeing this, people who can't afford medication and they stop taking it, which causes dire complications.

Even with health insurance, he owed the hospital over $5,600 and rehabilitation about $2,000. We were able to have the hospital bill "forgiven" after proving my brother had no money. The hospital has a charity fund we applied for; we are applying for the same for rehabilitation. We live in Charlotte, North Carolina, and there are low-cost medical clinics for people who are not more than 20 percent over the poverty level. This is what I have been looking into once COBRA runs out. My brother is not eligible for Medicaid since he is a single male. He lost his job and his house last year so is now living with my husband and I.

I went through a similar instance with my daughter when she graduated college in 2007 and went off our insurance. She had an ultrasound due to menstrual cramps earlier that year and it was inconclusive. Not one insurance carrier would cover her because of the "inconclusive" diagnosis! She took no medications and her doctor wrote a letter to the insurance companies. Eventually she was able to get insurance when she found a job, but the immorality of this made me so angry!

I have been fortunate because I have had good healthcare. However, now that I have someone in my family who has no insurance, it makes me very angry. I have been following healthcare ever since Obama took office.

I want to see the Democrats get tough, for God's sake. I love Obama, but he is too damn nice. Why can't we get fifty-one Senate votes and go for reconciliation? I tell everyone about my brother and tell them that it could happen to them. We elected Obama to be the president who would finally get healthcare done. He needs to get tough and do it. The Republicans only want him to fail for their own selfish political needs. They couldn't care less about the American people. They don't want him to go down in history as the president that got healthcare.

LR and BT, 55 and 51
North Carolina

Is Congress the Opposite of Progress? I Hope Not

I used to be covered by my mom's insurance, but I couldn't afford this semester of school and they cut her, so now both of us are uninsured.

She's 56, works in retail as a salesperson. She's been there for almost twelve years. I'm 21 and currently work a few hours a week as a homemaker. They started cutting her hours in September, but I was in college at the time so we somewhat had coverage.

It bothers me greatly that there's the possibility but no progress with the healthcare bill. I tore the ligaments in my shoulder a few years ago and had I not been under my mother's insurance I'd have to pay $1,500 per MRI. Hospital bills have prevented me from going on with education. I was supposed to have surgery, but couldn't afford it. So now we're sort of at the edge. We can't get sick or anything. Honestly, the Senate bill does bother me. But I can't expect a huge change right away. In my opinion, it would be a baby step toward progress. A friend once told me "If con is the opposite of pro, is Congress the opposite of progress?" I hope not. I wish Democrats would unite. There are worse cases than mine.

Bisera Rozic, 21
Illinois

The Myth of the Good War: America in World War II




60 Years Ago, February 13-14, 1945: Why was Dresden Destroyed

Deepening Debt Crisis: The Bernanke Reappointment: Be Afraid, Very Afraid









If the economy deteriorates in the L-shaped “hockey-stick” rut that many economists forecast, what political price will President Obama and the Democrats pay for having returned the financial keys to the Bush Republican appointees who gave away the store in the first place? Reappointing Federal Reserve Chairman Ben Bernanke may end up injuring not only the economy but also the Democratic Party for years to come. Recognizing this, Republicans made populist points by opposing his reappointment during the Senate confirmation hearings last Thursday, January 27 – the day after Mr. Obama’s State of the Union address.

The hearings focused on the Fed’s role as Wall Street’s major lobbyist and deregulator. Despite the fact that its Charter starts off by directing it to promote full employment and stabilize prices, the Fed is anti-labor in practice. Alan Greenspan famously bragged that what has caused quiescence among labor union members when it comes to striking for higher wages – or even for better working conditions – is the fear of being fired and being unable to meet their mortgage and credit card payments. “One paycheck away from homelessness,” or a downgraded credit rating leading to soaring interest charges, has become a formula for labor management.

As for its designated task in promoting price stability, the Fed’s easy-credit bubble has made asset-price inflation the path to wealth, not tangible capital investment. This has brought joy to bank marketing departments as homeowners, consumers, corporate raiders, states and localities run further and further into debt in an attempt to improve their position by debt leveraging. But the economy has all but neglected its industrial base and the employment goes with manufacturing. The Fed’s motto from Bubblemeister Alan Greenspan to Ben Bernanke has been “Asset-price inflation, good; wage and commodity price inflation, bad.”

Here’s the problem with that policy. Rising prices for housing have increased the cost of living and doing business, widening the excess of market price over socially necessary costs. In times past the government would have collected the rising location rent created by increasing prosperity and public investment in transportation and other infrastructure making specific sites more valuable. But in recent years taxes have been rolled back. Land sites still cost as much as ever, because their price is set by the market. Land itself has no cost of production. Locational value is created by society, and should be the natural tax base because a land tax does not increase the price of real estate; it lowers it by leaving less “free” rent to be paid to the banks.

The problem is that what the tax collector relinquishes is now available to be paid to banks as interest. And prospective buyers bid against each other until the winner is whoever is first to pay the land’s location rent to the banks as interest.

This tax shift – to the benefit of the bankers, not homeowners – has made Mr. Obama’s hope of doubling U.S. exports during the next five years ring hollow. This is the upshot of “creating wealth” in the form of a debt-leveraged real estate and stock market bubble. Labor must pay more for debt-financed housing and education, not to mention payments to health insurance oligopoly and higher sales and income taxes shifted off the shoulders of financial and real estate.

Once the Republicans were certain which way the vote would go, they were able to voice some nice populist sound bites for the mid-term elections this November. Jeff Sessions of Alabama and Sam Brownback of Kansas voted against Mr. Bernanke’s confirmation. Jim deMint of South Carolina warned that reappointing him would be “The biggest mistake that we’re going to make for a long time.” He added: “Confirming Bernanke is a continuation of the policies that brought our economy down.”

Among Democrats running for re-election, Barbara Boxer of California pointed out that by spurring the asset-price inflation, the Fed’s pro-Bubble (that is, pro-debt policy) has crashed the economy, shrinking employment. The Fed is supposed to protect consumers, yet Mr. Bernanke is a vocal opponent of the Consumer Finance Products Agency, claiming that the deregulatory Fed alone should be the sole financial regulator – seemingly an oxymoron.

Mr. Obama supports Mr. Bernanke and his State of the Union address conspicuously avoided endorsing the Consumer Financial Products Agency that he earlier had claimed would be the centrepiece of financial reform. Wall Street lobbyists have turned him around. Their logic was the same mantra that Connecticut insurance industry’s Sen. Chris Dodd repeated at the confirmation hearings: Mr. Bernanke has “saved the economy.”

How can the Fed be said to do this when the volume of debt is growing exponentially beyond the ability to pay? “Saving the debt” by bailing out creditors – by adding bad private-sector debts to the public sector’s balance sheet – is burdening the economy, not saving it. The policy only postpones the crisis while making the ultimate volume of debt that must be written off higher – and therefore more traumatic to write off, annulling a corresponding volume of savings on the other side of the balance sheet (because one party’s savings are another’s debts).

What really is at issue is the economic philosophy that Mr. Bernanke will apply during the coming four years. Unfortunately, Mr. Bernanke’s questioners failed to ask relevant questions along these policy lines and the economic theory or rationale underlying his basic approach. What needed to be addressed was not just his deregulatory stance in the face of the Bubble Economy and exploding consumer fraud, or even the mistakes he has made. Republican Sen. Jim Bunning elicited only smirks and pained looked as Mr. Bernanke rested his chin on his hand, as if to say, “I’m going to be patient and let you rant.” The other Senators were almost apologetic.

One popular (and thoroughly misleading) description of Bernanke that has been cited ad nauseum to promote his reappointment is that he is an expert on the causes of the Great Depression. If you are going to create a new crash, it certainly helps to understand the last one. But economic historians who have compared Mr. Bernanke’s writings to actual history have found that it is precisely his misunderstanding of the Depression that is leading him tragically to repeat it.

As a trickle-down apologist for high finance, Prof. Bernanke has drawn systematically wrong conclusions as to the causes of the Great Depression. The ideological prejudice behind his view is of course what got him his job in the first place, for as numerous observers have quipped, a precondition for being hired as Fed Chairman is that one does not understand how the financial system actually works. Instead of recognizing that deepening debt, low wages and the siphoning up of wealth to the top of the economic pyramid were primary causes of the Depression, Prof. Bernanke attributes the main problem simply to a lack of liquidity, causing low prices.

As my Australian colleague Steve Keen recently has written in his Debtwatch No. 42 (http://www.debtdeflation.com/blogs/), the case against Mr. Bernanke should focus on his neoclassical approach that misses the fact that money is debt. He sees the financial problem as being too low a price level for assets to be collateralized for bank loans. And to Mr. Bernanke, “wealth” is synonymous with what banks will lend, under existing credit terms.

In 1933, the economist Irving Fischer (mainly responsible for the “modern” monetarist tautology MV = PT) wrote a classic article, “The Debt-Deflation Theory of the Great Depression,” recanting the neoclassical view that had led him to lose his personal fortune in the 1929 stock market crash. He explained how the inability to pay debts was forcing bankruptcies, wiping out bank credit and spending power, shrinking markets and hence the incentive to invest and employ labor.

Mr. Bernanke rejects this idea, or at least the travesty he paraphrases in his Essays on the Great Depression (Princeton, 2000, p. 24), as Prof. Keen quotes:

Fisher’ s idea was less influential in academic circles, though, because of the counterargument that debt-deflation represented no more than a redistribution from one group (debtors) to another (creditors). Absent implausibly large differences in marginal spending propensities among the groups, it was suggested, pure redistributions should have no significant macroeconomic effects.

All that a debt overhead does is transfer purchasing power from debtors to creditors. Bernanke is reminiscent here of Thomas Robert Malthus, whose Principles of Political Economy argued that landlords (Malthus’s own class) were necessary to maintain economic equilibrium in a way akin to trickle-down theorists through the ages. Where would English employment be, Malthus argued, without landlords spending their revenue on coachmen, fine clothes, butlers and servants? It was landlords spending their rental income (protected by England’s agricultural tariffs, the Corn Laws, until 1846) that kept buggy-makers and other suppliers working. And by the same logic, this is what wealthy Wall Street financiers do today with the money they make by lending to enable homeowners and savers to get rich making capital gains off asset-price inflation.

The reality is that wealthy Wall Street financiers who make multi-million dollar salaries and bonuses spend their money on trophies: fine arts, luxury apartments or houses in gated communities, yachts, fancy handbags and high fashion, birthday parties with appearances by modish pop singers. (“I see the yachts of the stock brokers; but where are those of their clients?”) This is not the kind of spending that reflects the “real” economy’s production profile.

Mr. Bernanke sees no problem, unless rich people spend less of their gains on consumer goods and the products of labor than average wage earners. But of course this propensity to consume is precisely the point John Maynard Keynes made in his General Theory (1936). The wealthier people become, the lower a proportion of their income they consume – and the more they save.

This falling propensity to consume is what worried Keynes about the future. He imagined that as economies saved more as their income levels rose, they would spend less on goods and services. So output and employment would not be able to keep pace – unless the government stepped in to make up the gap.

Consumer spending is indeed falling, but not because economies are experiencing a higher net saving rate. The U.S. saving rate has fallen to zero – because despite the fact that gross savings remain high (about 18 percent), most is lent out to become other peoples’ debts. The effect is thus a wash on an economy-wide basis. (18 percent saving less 18 percent debt = zero net saving.)

The problem is that workers and consumers have gone deeper and deeper into debt, saving less and less. This is just the opposite of what Keynes forecast. Only the wealthiest 10 percent or so of the population save more and more – mainly in the form of loans to the “bottom 90 percent.” Saving less, however, goes hand in hand with consuming less, because of the revenue that the financial sector drains out of the “real” economy’s circular flow (wage-earners spending their income to buy the goods they produce) as debt service. The financial sector is wrapped around the production-and-consumption economy. So an inability to consume is part and parcel of the debt problem. The basis of monetary policy throughout the world today therefore should be how to save economies from shrinking as a result of their exponentially growing debt overhead.

Bernanke’s apologetics for finance capital: Economies seem to need more debt, not less

Bernanke finds “declines in aggregate demand” to be the dominant factor in the Great Depression (p. ix, as cited by Steve Keen). This is true in any economic downturn. In his reading, however, debt seems not to have anything to do with falling spending on what labor produces. Taking a banker’s-eye view, he finds the most serious problem to be the demand for stocks and real estate. Mr. Bernanke promises not to let falling asset demand (and hence, falling asset prices) happen again. His antidote is to flood the economy with credit as he is now doing, emulating Alan Greenspan’s Bubble policy.

The wealthiest 10 percent of the population do indeed save most of their money. They lend savings – and create new credit – to the bottom 90 percent, or gamble in derivatives or other zero-sum activities in which their gain (if indeed they make any) finds its counterpart in some other parties’ loss. The system is kept going not by government spending, Keynesian-style, but by new credit creation. That supports consumption, and indeed, lending against real estate, stocks and bonds enables borrowers to bid up their prices, enabling their owners to borrow yet more against these assets. The economy expands – until current revenue no longer covers the debt’s carrying charges.

That’s what brings the Bubble Economy down with a crash. Asset-price inflation gives way to crashing prices and negative equity for real estate and for much financial debt leveraging as well. It is in this sense that Prof. Bernanke’s blames the Depression on lower prices. When prices for real estate or other collateral plunge, it no longer can be pledged for more loans to keep the circular flow of lending and debt repayment in motion.

This circular financial flow is quite different from the circular flow that Keynes (and Say’s Law) discussed – the circulation where workers and their employers spent their wages and profits on consumer goods and investment goods. The financial circular flow is between the banks and their clients. And this circular flow swells as it diverts more and more spending from the “real” economy’s circular flow between income and spending. Finance capital expands relative to industrial capital.[1]

Higher prices in the “real” economy may help maintain the circular financial flow, by giving borrowers more current income to pay their mortgages, student loans and other debts. Mr. Bernanke accordingly sees FDR’s devaluation of the dollar as helping reflate prices.

Today, however, a declining dollar would make imports (including raw materials as well as key consumer goods) more costly. This would squeeze the budgets of most families, given America’s rising import dependency as its economy is post-industrialized and financialized. So Mr. Bernanke’s favored policy is to get banks lending again – not for the government to spend more on deficit spending on infrastructure, social services or other full employment projects. The government spending that Mr. Bernanke has endorsed is pure bailouts to the banks, insurance companies, real estate packagers and other Wall Street institutions so that they can support asset prices and thereby save the economy’s financial balance sheet, not its employment and living standards.

More debt thus is not the problem, in Chairman Bernanke’s view. It is the solution. This is what makes his re-appointment so dangerous.

Devaluation of the dollar FDR-style will make U.S. real estate, corporations and other assets cheaper to global investors. It thus will have the same “positive” effects (if you can call making homes and office buildings more costly to buyers a “positive” effect) as more credit – and without the debt service needing to be raked off from the economy. This policy is akin to the International Monetary Fund’s “stabilization” and austerity programs that have caused such havoc over the past few decades.[2] It is the policy being prepared for imposition on the United States. This too is what makes Bernanke’s re-appointment so dangerous.

The problem is a combination of Mr. Bernanke’s dangerous misreading of economic history, and the banker’s-eye perspective that underlies this view – which he now has been empowered to impose from his perch as central planner at the Federal Reserve Board. Pres. Obama’s support for his reappointment suggests that the recent economic rhetoric heard from the White House is a faux populism. The President promises that this time, it will be different. The former Bush appointees – Geithner, Bernanke and the Goldman Sachs managers on loan to the Treasury – will be willing to stand up to Goldman Sachs and the other bankers. And this time the Clinton-era Rubinomics boys will not do to the U.S. economy what they did to the Soviet Union.

With this stance, it is no wonder that the Obama Democrats are relinquishing the populist anti-Wall Street card to the Republicans!

The Bernanke albatross

Mr. Bernanke misses the problem that debts need to be repaid – or at least carried. This debt service deflates the non-financial “real” economy. But the Fed’s analysis stops just before the crash. It is a “good news” theory limited to the happy time while the bubble is expanding and homeowners borrow more and more from the banks to buy houses (or more accurately, their land sites) that are rising in price. This was the Greenspan-Bernanke bubble in a nutshell.

We need not look as far back as the Great Depression. Japan since 1990 is a good example. Its land prices declined every quarter for over 15 years after its bubble burst. The Bank of Japan did what the Federal Reserve is doing now: It lowered lending rates to banks below 1%. Banks “earned their way out of debt” by lending to global speculators who used the yen loans to convert into foreign currency and buy higher-yielding assets abroad – capped by Icelandic government bonds paying 15%, and pocketing the arbitrage difference.

This steady conversion of speculative money out of yen into foreign currency held down Japan’s exchange rate, helping its exporters. Likewise today, the Fed’s low-interest policy leads U.S. banks to borrow from it and lend to arbitrageurs buying higher-yielding bonds or other securities denominated in euros, sterling and other currencies.

The foreign-exchange problem develops when these loans are paid back. In Japan’s case, when global financial markets turned down and Japanese interest rates began to rise in 2008, arbitrageurs decided to unwind their positions. To pay back the yen they had borrowed from Japanese banks, they sold euro- and dollar-denominated bonds and bought the Japanese currency. This forced up the yen’s exchange rate – eroding its export competitiveness and throwing its economy into turmoil. The long-ruling Liberal Democratic Party was voted out of power as unemployment spread.

In the U.S. case today, Chairman Bernanke’s low interest-rate regime at the Fed has spurred a dollar-denominated carry trade estimated at $1.5 trillion. Speculators borrow low-interest dollars and buy high-interest foreign-currency bonds. This weakens the dollar’s exchange rate against foreign currencies (whose central banks are administering higher interest rates). The weakening dollar leads U.S. money managers to send more investment funds out of our economy to those promising stock market gains as well as a foreign-currency gain.

The prospect of undoing this credit creation threatens to lock the United States into a low-interest trap. The problem is that if and when the Fed begins to raise interest rates (for instance, to slow the new bubble that Mr. Bernanke is trying to inflate), global speculators will repay their dollar debts. As the U.S. carry trade is unwound, the dollar will soar in price. This threatens to make Mr. Obama’s promise to double U.S. exports within five years seem an impossible dream.

The prospect is for U.S. consumers to be hit by a triple whammy. They must pay higher prices for the goods they buy as the dollar declines, making imports more expensive. And the government will be spending less on the economy’s circular flow as a result of Pres. Obama’s three-year spending freeze to slow the budget deficits. Meanwhile, states and cities are raising taxes to balance their own budgets as tax receipts fall. Consumes and indeed the entire economy must run more deeply into debt simply to break even (or else see living standards eroded).

To Mr. Bernanke, economic recovery requires resuscitating the Goldman Sachs squid that Matt Taibbi so artfully has described as being affixed to the face of humanity, duly protected by the Fed. The banks will lend more to keep the debt pyramid growing to enable consumers, businesses and local government to avoid contraction.

All this will enrich the banks – as long as the debts can be paid. And if they can’t be paid, will the government bail them out all over again? Or will it “be different” this time around?

Will our economy flounder with Mr. Bernanke’s reappointment as the rich get richer and the American family comes under increasing financial pressure as incomes drop while debts grow exponentially? Or will Americans get rich off the new bubble as the Fed re-inflates asset prices?

The Road to Debt Peonage

Last week, Senator John Kerry of Massachusetts acknowledged many Americans’ anger about the bailouts of the big banks: “It’s understandable why there is debate, questioning and even anger” about Mr. Bernanke’s re-nomination. “Still,” he added, “out of this near calamity, I believe Chairman Bernanke provided leadership that was urgent, nimble, strong and vital in staving off greater disaster.”

Unfortunately, by “disaster” Sen. Kerry seems to mean losses for Wall Street. He shares with Chairman Bernanke the idea that gains in raising asset prices are good for the economy – for instance, by enabling pension funds to pay retirees and “build wealth” for America’s savers.

While the Bush-Obama team hopes to reflate the economy, the $13 trillion bailout money they have spent trying to fuel the destructive bubble takes the form of trickle-down economics. It has not run up public debt in the Keynesian way, by government spending such as in the modest “Stimulus” package to increase employment and income. And it is not providing better public services. It was designed simply to inflate asset prices – or more accurately, to prevent their decline.

This is what re-appointment of the Fed Chairman signifies. It means a policy intended to raise the price of housing on credit, with a corresponding rise in consumer income paid to bankers as mortgage debt service.

Meanwhile, rising stock and bond prices will increase the price of buying a retirement income. A higher stock price means a lower dividend yield. The same is true for bonds. Flooding the capital markets with credit to bid up asset prices thus holds down the yield of the assets of pension funds, pushing them into deficit. This enables corporate managers to threaten bankruptcy of their pension plans or entire companies, General Motors-style, if labor unions do not renegotiate their pension contracts downward. This “frees” yet more money for financial managers to pay creditors at the top of the economic pyramid.

Mr. Bernanke’s opposition to regulating Wall Street

How does one overcome this financial polarization? The seemingly obvious solution is to select Fed and Treasury administrators from outside the ranks of ideologues supported by – indeed, applauded by – Wall Street. Creation of a Consumer Financial Products Agency, for instance, would be largely meaningless if a deregulator such as Mr. Bernanke were to run it. But that is precisely what he is asking to do in testifying that his Federal Reserve should be the sole regulatory agency, nullifying the efforts of all others – just in case some state agency, some federal agency or some Congressional committee might move to protect consumers against fraudulent lending, extortionate fees and penalties and usurious interest rates.

Mr. Bernanke’s fight against proposals for such regulatory agencies to protect consumers from predatory lending is thus a second reason not to re-appoint him. How can Mr. Obama campaign for his reappointment as Chairmanship of the Fed and at the same time endorse the consumer protection agency? Without dumping Bernanke and Geithner, it doesn’t seem to matter what the law says. The Democrats have learned from the Bush and Reagan administrations that all you have to do is appoint deregulators in key positions, and legal teeth are irrelevant.

Independence of the Federal Reserve is a euphemism for financial oligarchy

This brings up the third premise that defenders of Mr. Bernanke cite: the much vaunted independence of the Federal Reserve. This is supposed to be safeguarding democracy. But the Fed should be subject to representative democracy, not independent of it! It rightly should be part of the Treasury representing the national interest rather than that of Wall Street.

This has emerged as a major problem within America’s two-party political system. Like the Republican team, the Obama administration also puts financial interests first, on the premise that wealth flows from its credit activities, the financial time frame tends to be short-run and economically corrosive. It supports growth in the debt overhead at the expense of the “real” economy, thereby taking an anti-labor, anti-consumer, anti-debtor policy stance.

Why on earth should the most important sector of modern economies – finance – be independent from the electoral process? This is as bad as making the judiciary “independent,” which turns out to be a euphemism for seriously right-wing.

Over and above the independence issue, to be sure, is the problem that the government itself if being taken over by the financial sector. The Treasury Secretary, Fed Chairman and other financial administrators are subject to Wall Street’s advice and consent first and foremost. Lobbying power makes it difficult to defend the public interest, as we have seen from the tenure of Mr. Paulson and Mr. Geithner. I don’t believe Mr. Obama or the Democrats (to say nothing of the Republicans) is anywhere near rising to the occasion of solving this problem. One can only deplore Mr. Obama’s repetition of his endorsements.

Allied to the “independence” issue is a fourth reason to reject Mr. Bernanke personally: the Fed’s secrecy from Congressional oversight, highlighted by its refusal to release the names of the recipients of tens of billions of Fed bailouts and cash-for-trash swaps.

Does it matter?

Now that the confirmation arguments against Mr. Bernanke’s reappointment have been rejected, what does it mean for the future?

On the political front, his reappointment is being cited as yet another proof that the Democrats care more for bankers than for American families and employees. As a result, it will do what seemed unfathomable a year ago: enable GOP candidates to strike the pose of FDR-type saviors of the embattled middle class. No doubt another decade of abject GOP economic failure would simply make the corporate Democrats appear once again to be the alternative. And so it goes … unless we do something about it.

The problem is not merely that Mr. Bernanke failed to do what the Fed’s charter directs it to do: promote employment in an environment of stable prices. The Republicans – and some Democrats – read out the litany of Bernanke abuses. The Fed could have raised interest rates to slow the bubble. It didn’t. It could have stopped wholesale mortgage fraud. It didn’t. It could have protected consumers by limiting credit card rates. It didn’t.

For Bernanke, the current financial system (or more to the point, the debt overhead) is to be saved so that the redistribution of wealth upward will continue. The Congressional Research Service has calculated that from 1979 to 2003 the income from wealth (rent, dividends, interest and capital gains) for the top 1 percent of the population soared from 37.8% to 57.5%. This revenue has been expropriated from American employees pushed onto debt treadmills in the face of stagnating wages.

Meanwhile, the government is permitting corporate tollbooth to be erected across our economy – and un-taxing this revenue so that it can be capitalized into financialized wealth paying only a 15% tax rate on capital gains. It pays these taxes not as these gains accrue, but and only when they realize them. And the tax does not even have to be paid if the sales proceeds of these assets is reinvested! Financial and fiscal policy thus reinforce each other in a way that polarizes the economy between the financial sector and the “real” economy.

Behind these bad policies is a disturbing body of junk economics – one that, alas, is taught in most universities today. (Not at the University of Missouri at Kansas City, and a few others, to be sure.) Mr. Bernanke views money simply as part of a supply and demand equation between money and prices – and he refers here only to consumer prices, not the asset prices which the Fed failed to address. That is a big part of the Fed’s blind spot: Messrs. Greenspan and Bernanke imagined that its charter referred only to stabilizing consumer prices and wages – while asset prices – the cost of obtaining housing, an education or a retirement income – have soared as a result of debt leveraging.

What Mr. Bernanke misses – along with his neoclassical colleagues – is that the money that is spent bidding up prices is also debt. This means that it leaves a debt legacy. When banks “provide credit” by writing loans, what they are selling is debt.

The question their marketing departments ask is, how large is the market for debt? When I went to work for Chase Manhattan in 1967 as its balance-of-payments analyst, for example, I liaised with the marketing department to calculate how large the international debt market was – and how large a share of this market the bank could reasonably expect to get.

The bank quantified the debt market by measuring how large a surplus borrowers could squeeze out over and above basic break-even needs. For personal loans, the analogy was how much could a wage earner afford to pay the bank after meeting basic essentials (rent, food, transportation, taxes, etc.). For the real estate department, how much net rental income could a landlord pay out, after meeting fuel and other operating costs and taxes? The anticipated surplus revenue was capitalized into a loan. From the marketing department’s vantage point, banks aimed at absorbing the entire surplus as debt service.

Financial debt service is not spent on consumer goods. It is recycled into new loans, after paying dividends to stockholders and salaries and bonuses to its managers. Stockholders spend their money on buying other investments – more stocks and bonds. Managers buy trophies – yachts, trophy paintings, trophy cars, trophy apartments (whose main value is their location – the neighborhood where their land is situated), foreign travel and other luxury. None of this spending has much effect on the consumer price index, but it does affect asset prices.

This idea is lacking in neoclassical and monetarist theory. Once “money” (that is, debt) is spent, it has an effect on prices via supply and demand, and that is that. There is no dynamic over time of debt or wealth. Ever since Marxism pushed classical political economy to its logical conclusion in the late 19th century, economic orthodoxy has been traumatized from dealing about wealth and debt. So balance-sheet relationships are missing from the academic economics curriculum. That is why I stopped teaching economics in 1972, until the UMKC developed an alternative curriculum to the University of Chicago monetarism by focusing on debt creation and the recognition that bank loans create deposits, inverting the usual “Austrian” and other individualistic parallel universe theories.


Notes


[1] I elaborate the logic in greater detail in “Saving, Asset-Price Inflation, and Debt-Induced Deflation,” in L. Randall Wray and Matthew Forstater, eds., Money, Financial Instability and Stabilization Policy (Edward Elgar, 2006):104-24. And I explain how the recent expansion of credit and easing of lending terms fueled the real estate bubble in “The New Road to Serfdom: An illustrated guide to the coming real estate collapse,” Harpers, Vol. 312 (No. 1872), May 2006):39-46.

[2] I explain the workings of these plans in greater detail in Super Imperialism: The Economic Strategy of American Empire (1972; new ed., 2002), “Trends that can’t go on forever, won’t: financial bubbles, trade and exchange rates,” in Eckhard Hein, Torsten Niechoj, Peter Spahn and Achim Truger (eds.), Finance-led Capitalism? (Marburg: Metropolis-Verlag, 2008), and Trade, Development and Foreign Debt: A History of Theories of Polarization v. Convergence in the World Economy (1992, new ed. 2009).


Michael Hudson is a frequent contributor to Global Research. Global Research Articles by Michael Hudson

Scalia v. The World: On Antonin Scalia



Scalia v. The World: On Antonin Scalia

By Michael O'Donnell


This article appeared in the February 22, 2010 edition of The Nation.


Antonin Scalia and Ruth Bader Ginsburg in Jaipur, India, 1994 THE OYEZ PROJECT
Antonin Scalia and Ruth Bader Ginsburg in Jaipur, India, 1994

The dean of the modern conservative legal movement, Justice Antonin Scalia, is neither an intellectual nor a primitive. He is both. Scalia has fused the cerebral and the atavistic strains of conservatism in a manner that leaves one wondering if they were ever distinct at all. For decades Scalia has beguiled conservative law students with his abhorrence of compromise and the colorful, take-no-prisoners style of his opinions. More than any other contemporary jurist, he claims to abide by a host of scrupulous legal principles: strict fidelity to a statute's text, adherence to the Constitution's original meaning, respect for the nation's federal structure of government. But notwithstanding these "neutral" principles and his habit of adorning his defense of them with intellectual flourishes, Scalia writes his opinions in boiling ink, mixing prodigious citations and vast learning with callous disregard for others and bursts of derision bordering on bigotry.

In a recent dissent that was joined by Justice Clarence Thomas, Scalia argued, astonishingly, that the Constitution does not forbid executing a demonstrably innocent man, so long as he has been given a fair trial first. (Justice John Paul Stevens, the senior liberal on the Court, responded in a concurring opinion that putting to death an innocent person would "be an atrocious violation of our Constitution.") In his dissent in Lawrence v. Texas, from 2003, in which the Supreme Court struck down Texas's anti-sodomy law, Scalia compared laws outlawing gay sex with those prohibiting bigamy, incest and bestiality. Having cleared his throat, Scalia then declared,

Many Americans do not want persons who openly engage in homosexual conduct as partners in their business, as scoutmasters for their children, as teachers in their children's schools, or as boarders in their home. They view this as protecting themselves and their families from a lifestyle that they believe to be immoral and destructive. The Court views it as "discrimination" which it is the function of our judgments to deter. So imbued is the Court with the law profession's anti-anti-homosexual culture, that it is seemingly unaware that the attitudes of that culture are not obviously "mainstream" [and] that in most States what the Court calls "discrimination" against those who engage in homosexual acts is perfectly legal.

Scalia's expression of base sentiments in fluid, vigorous prose is a strange blending of the high and the low--like a Catholic Mass in which the liturgy is led by a bearded hippie strumming a guitar and singing in Latin. Scalia attempted to qualify these ugly lines in the next paragraph of his dissent by insisting, "I would no more require a State to criminalize homosexual acts--or, for that matter, display any moral disapprobation of them--than I would forbid it to do so." Scalia seems genuinely baffled at the widespread incredulity that increasingly greets such protestations. His trademark busy italics might convey a spirit of apolitical rectitude, but they can't conceal the striking overlap of his judicial opinions with socially conservative policy preferences.

If there is nothing more admirable than a judge forgoing personal beliefs to uphold legal principles, there is nothing more distasteful than a judge who claims to do so against strong evidence to the contrary. Scalia's purportedly neutral, apolitical jurisprudence has moved him to vote against affirmative action, protection for abortion, rights for gays and lesbians, and equal treatment of women, and in favor of practically unfettered capital punishment, gun ownership and the open embrace of Christianity by the state. When questioned about this unbroken string of conservative decisions, Scalia is quick to highlight his votes striking down state and federal laws that banned flag burning, in Texas v. Johnson (1989) and United States v. Eichman (1990), stating that flag burning is repugnant to him personally (as it is to most conservatives) but is protected by the First Amendment. The cases have become his little black friends, inoculating him against any charge of legislating from the bench--the ultimate conservative heresy. But a more likely explanation than dutiful professionalism for his votes in the flag-burning cases is that free-speech principles do not animate him in the way social issues do. Just as principled judges are not always consistent, unprincipled judges are not always inconsistent.

Because Scalia, more than any other Supreme Court justice, has staked his reputation and legacy on a commitment to neutral principles, he invites ridicule for abandoning those principles when they fail to produce politically conservative results. In the 1990s he voted enthusiastically with the Court's federalists, Sandra Day O'Connor and William Rehnquist, to limit Congress's power and advance the historically dubious cause of state sovereignty. Happily for him, these votes had the effect of nullifying federal laws that regulated guns and protected women from violence. But more recently, when state "laboratories of democracy" produced laws inimical to the social conservative agenda, like those authorizing medical marijuana and physician-assisted suicide, his solicitude for state prerogatives went up in smoke.

His vote in Bush v. Gore (2000) is the most notorious in this regard. Despite having fought vigorously in previous cases to limit the Constitution's equal protection guarantee as applied to minorities, Scalia found an unprecedented equal protection violation in the manner in which Florida counties conducted their recounts. More remarkable still, he refused to defer to the Florida Supreme Court's construction of a question of Florida election law, such deference being perhaps the most abiding feature of the Court's federalism jurisprudence. These days Scalia grows testy when asked about Bush v. Gore, telling his critics to "get over it." But the case dramatically reveals his fickle fidelity to neutral principles, rendering qualifications like those in the Lawrence dissent highly suspicious. In other words, Scalia was not merely channeling others in the "anti-homosexual" camp when he explained why many people find gays and lesbians intolerable: he was speaking his mind.

Joan Biskupic began covering the Supreme Court in 1989, three years after Scalia joined the Court. One might have expected her to pull a punch or two in American Original: The Life and Constitution of Supreme Court Justice Antonin Scalia so as not to be shut out of the most interesting chambers. But while American Original is no scathing critique, neither is it an easy endorsement. Biskupic clearly admires Scalia's pluck: on a beat where dry written opinions and aversion to the press are commonplace, he stands out as brash, funny, outspoken and controversial--a walking headline machine. But she dislikes his inconsistent jurisprudence, devoting an entire chapter to Bush v. Gore, as well as the caustic and sarcastic tone of his writing, which has only become sharper and more pronounced over the years, eroding the collegiality of the Court and leaving Scalia increasingly alone in dissent. "Scalia wrote with a recriminatory tone that often undercut his effectiveness," she writes. "He was hyperbolic and almost entirely dismissive of arguments from the other side." She gathers representative examples of his disrespectful references to his colleagues' opinions: they "cannot be taken seriously," are "beyond the absurd" and even should be considered "nothing short of preposterous." In light of the justices' reluctance to criticize one another personally, Biskupic also obtained several surprisingly candid observations made by Scalia's colleagues about his negative influence on the Court. "I think everybody respects Nino's wonderful writing ability and his style and all the rest," Justice Stevens told Biskupic. "But everybody on the Court from time to time has thought he was unwise to take such an extreme position, both in tone and in the position." Justice Ruth Bader Ginsburg, a close friend of Scalia's, was even more direct in an interview with Biskupic: "I love him. But sometimes I'd like to strangle him."

Biskupic does not provide any revelations in her portrait of the past fifteen years of Scalia's career, but she has lent it depth and texture. She has made excellent use of the archives of Justices Lewis Powell and Harry Blackmun from the 1980s and early '90s to flesh out the lonely role Scalia has earned for himself on the Court. Biskupic has a fine eye for a telling memo or private comment; Blackmun's archives in particular overflow with revealingly wry jottings. For example, when Scalia circulated a notably shrill dissent in 1988, Blackmun wrote in the margin of the draft, "Screams! Without the screaming, it could have been said in about 10 pages." Biskupic also cites a number of instances in which Scalia was assigned to write an opinion and then lost the majority because of his sanctimoniousness and refusal to compromise. On other occasions, Chief Justice Rehnquist simply declined to assign a case to Scalia for fear that this would happen.

Biskupic calls Scalia "the purest archetype of the conservative legal movement that began in the 1960s in reaction to the Warren Court." That's not quite right. Scalia is indeed the top conservative legal thinker of our time, universally admired by the right, but he was one of the patrons of the modern conservative legal movement, not one of its products. The prominence of his generation is fading and a new, more effective generation is in ascendance. It is well organized and strategically deft, with an eye always on results. Its purest archetype is not the grandiose but easily ignored Scalia, who at his worst might as well be standing on a corner shouting at people, but the faux-modest radical John Roberts, who in 2005 took the seat on the bench that Scalia thought was his to become Chief Justice of the United States.

Whereas Scalia smokes cigars, uses off-color language and flicks his chin like a hotheaded Soprano, Roberts wears his hair neatly, speaks mildly and displays his handsome family for the camera. His credentials and performance before the Senate Judiciary Committee so impressed Orrin Hatch that the senator recently told The New Yorker, "You have to be a partisan ideologue not to support Roberts." (If the modern judicial nominations process is a dance, Roberts is Baryshnikov.) As Roberts has shown particularly in cases dealing with race issues, he is every bit as conservative and cerebral as Scalia but also excels at consensus building and the game of institutional politics, and was an astute pick for that reason. If Roberts can retain an ally by withholding a sharp rebuke to an argument he finds disingenuous, he will do so, and conservatives will enjoy the results when the clerk calls the next case.

Roberts hardly figures in the story told by Steven Teles in The Rise of the Conservative Legal Movement, but the young Chief Justice is unquestionably one of many beneficiaries of the long-term planning and organizing--not to mention fervent praying--undertaken by that movement's founding fathers. Scalia was one of them. Shortly after the Federalist Society--which Teles rightly describes as "an organization of extraordinary consequence"--was founded as a conservative debating club by law students at Yale and the University of Chicago in the early 1980s, Scalia, then a law professor at Chicago, became one of its most important sponsors. As Teles explains, Scalia

helped connect the Yale and Chicago contingents with the conservative law group at Stanford, helped them with fund-raising, spoke at their first conference, hosted visiting Harvard Law Federalist Society members at his home when the Society had its conference at the University of Chicago Law School, and facilitated the Society's early move into an office at the American Enterprise Institute.

At a moment when the Federalist Society could well have flamed out as another student cafeteria organization, Scalia lent it connections, prestige and momentum. Perhaps he wanted the next generation to profit from a level of support that he never enjoyed; as a law student in the 1950s, he had to settle for the St. Thomas More Society. The Federalist Society has since evolved into a powerful, loose alliance of conservative lawyers and law students. Its leaders shrewdly decided to forgo position taking and litigation clinics--both of which could divide its diverse members; instead, it has promoted debates, networking and, above all, institution building, through clerkships, government posts and law professorships.

Scalia's interactions with one of the society's founders nicely illustrates the way it patiently established a beachhead and then penetrated every corner of the profession. Lee Liberman Otis co-founded the Federalist Society while a student of Scalia's at Chicago in the early '80s. In 1982 Scalia became a judge on the US Court of Appeals for the DC Circuit, and he asked Liberman to clerk for him. A few years later she took a position vetting judicial nominees in President Reagan's Justice Department, where she determinedly championed Scalia for the Supreme Court in 1986 over his better-known colleague on the DC Circuit, Judge Robert Bork. Scalia was nominated and confirmed, and he promptly hired Liberman to clerk for him again, granting her the one credential that can open any door in the legal world. Liberman went on to teach law at George Mason University and then returned to work in the two Bush administrations. She currently serves as senior vice president of the Federalist Society. A mutually beneficial relationship installed a giant on the Supreme Court and twice provided him the services of a reliably conservative law clerk, and in turn landed a young conservative lawyer posts in the judicial and executive branches of federal government and in the predominantly liberal academy. Multiply this story by a thousand, and you begin to grasp the Federalist Society's muscle.

Throughout The Rise of the Conservative Legal Movement, Teles emphasizes the libertarian and intellectual dimensions of the conservative counterrevolution, even to a fault. He does not discuss social conservative organizations like Jay Sekulow's American Center for Law and Justice, which in September published an op-ed titled "The President's New Name: President Barack Obortion"; nor does he examine those organizations motivated by religious conservatism, like Pat Robertson's Regent University School of Law. Yet these institutions and the sentiments that animate them--Scalia's territory--have been indispensable to the movement's successes. For every principled intellectual who finds the Supreme Court's theoretical conception of the due process clause inherently flawed, there is someone else who doesn't want teachers saying that man descended from monkeys. Given that such hidebound ideas are integral to legal conservatism, statements about the mission of the Federalist Society like that of Steven Calabresi, one of the organization's founders, sound impossibly optimistic: "We want to be a reasonable organization like AEI, an organization of thoughtful and intelligent people, an organization that's engaged in dialogue with people on the left, not an organization that's a caricature of what conservatives could be." Thoughtful and intelligent people don't call gay men "homos," as Robertson was famously caught doing during the commercial break of an interview on Larry King Live. By founding an organization deliberately intended to welcome the likes of The 700 Club, the Federalist Society's leaders made its mission statement a contradiction in terms.

If Scalia's ascendance and the role of social and religious conservatism suggest some fundamental inseparability of the conservative legal movement from the worst elements of the base, then so does the movement's bloody shirt: the Senate's rejection of Bork's Supreme Court nomination in 1987. Teles describes the impact of this defeat in vivid terms, emphasizing the pain and anger many legal conservatives felt as their godfather was savaged on the Senate floor. Bork was extremely well connected in Washington legal circles and mentored scores of up-and-coming conservative lawyers in his various positions as solicitor general, a popular law professor and a judge of the US Court of Appeals alongside Scalia. His many acolytes took his humiliation personally. "People felt genuinely outraged," Calabresi told Teles; it was as if "their father or mother had not been confirmed to the Supreme Court."

But Teles is mistaken to compare this referendum on conservative constitutionalism with the "seminal moment[s] of injustice" that motivated other social movements, like Stonewall and the attacks on black civil rights marchers. Minorities who were targeted and physically attacked merely for their intrinsic identities are simply not in the same category as elite judges who feel disenfranchised or indignant because the majority of the country finds their views unacceptable. Yet regardless of whether legal conservatives were justified in feeling the same way about Bork that liberals felt about civil rights icons, the point is, those feelings were genuinely held. And Bork is not a gentle conservative in the tradition of David Souter. He is a true reactionary who might well have edged out Clarence Thomas for the seat on the farthest right of the bench. With people like Bork and Scalia as its heroes, the conservative legal movement is to a great extent incapable of moderation.

Teles concludes that conservatives have caught up to liberals in some regards--at least in the sense of gaining representation, if not dominance, in elite institutions that feed the power structures of the legal profession--but certainly have not outmatched or uprooted them. And while their successes over the past thirty years have been impressive, those successes should not be understood through what Teles calls "the myth of diabolical competence," which essentially means the fallacy of a vast right-wing conspiracy. There was plenty of trial and error, and the whole thing wasn't hatched up and executed by a coterie of militants hunched over a set of blueprints in some underground bunker. This is a useful point to make, for when it comes to successful conservative movements, conspiracy theories abound yet are simplistic and unedifying.

If the movement's greatest success has been to place ideologically sympathetic judges like Scalia on the courts, it still straggles far behind in the legal academy, where ideas are shaped and prestigious degrees handed out. One exception, to which Teles devotes considerable attention, is the law and economics movement, which approaches legal problems through the language and analytic tools of economics. The movement began at the University of Chicago in the 1950s, and its most prestigious accolade was the John M. Olin Fellowship in Law and Economics, given each year to a handful of accomplished young scholars. (The fellowship program ended in 2005, when the Olin Foundation, as stipulated by its mission, disbanded after exhausting its assets.) But even here, the results are limited. If law and economics (and the Olin Fellowship) was once a proxy for more overt conservative credentials, now it is just another research field with questionable correlation to political views. Even the movement's biggest superstar, Richard Posner, makes little use of its tenets in his opinion writing; as a judge, he is much better described these days as a pragmatist than as a law and economics guru. (Full disclosure: I worked for Posner and other judges as a staff attorney at the US Court of Appeals for the Seventh Circuit from 2004 to 2006.) And regardless, a little knowledge of economics is a dangerous thing. While hard economics research is, of course, an important and empirically based discipline, applying economic principles broadly and casually is a little like psychoanalyzing your neighbor: anyone can do it, and the results are laden with spongy assumptions and frequently wrong.

I was reminded of this several months ago by an exchange on The Volokh Conspiracy, a law blog founded by the wunderkind UCLA professor Eugene Volokh that counts among its contributors libertarian legal scholars, many of them former Supreme Court clerks, who are very smart and have many thoughtful things to say about law, politics and culture. In September the blog featured a short post about the botched lethal injection of convicted murderer and rapist Romell Broom, whose executioners were unable for several hours to find a vein and had to reschedule the procedure. The Eighth Amendment--which prohibits cruel and unusual punishment--is a topic of scholarly interest to several of the blog's contributors, and Broom's terrible story undoubtedly caught their attention for that reason. The posting was sober and respectful, attempting little more than a summary of the awful facts and a few links. One commenter broke with decorum, offering that sparing Broom would "give death row inmates the option of overeating or getting hooked on smack during years before execution to make veins buried or trashed." Law and economics! Look, professor--an incentive! That this combination of would-be intellectualism and primitive sympathies is only a pose is less illuminating than what it is a pose of. Chief Justice Roberts might have expressed the same sentiment more diplomatically, and Bork more harshly, but only Scalia could've said it better.


About Michael O'Donnell

Michael O'Donnell is a lawyer in Chicago whose writing on legal matters has appeared in Bookforum, the Los Angeles Times and the Christian Science Monitor. more...