Harold Meyerson

The Wrong Fix

AP Photo/Bernd Kammerer
Yesterday, both Bob Kuttner, here in the Prospect , and I , in my Washington Post column , noted that the deal that German Chancellor Angela Merkel and French President Nicolas Sarkozy struck to save the Eurozone will inflict years of austerity on European nations that are already mired in depression. Spain, for instance, has an unemployment rate of about 20 percent and a youth unemployment rate that is approaching a mind-boggling 50 percent. It needs a massive Keynesian jolt to its economy, not budgetary constraints that will condemn it to a decade or quarter-century of penury. Both Bob and I also noted that the Merkel-Sarokzy solution was based on a misdiagnosis of Europe’s woes. Some of Europe’s current basket cases were actually running budget surpluses in the years before the Lehman meltdown. Ireland and Spain weren’t overspending at all—but the banks and investors speculating on their housing markets most certainly were. When their banks went under, their economies collapsed,...

The Journal vs. Fox (Huh?)

Hard though it be to believe, a Wall Street Journal editorial Monday actually had the temerity to criticize Fox News. Not by name, of course—Murdoch editorialists are nothing if not discreet when going after other parts of the Murdoch empire—but the criticism was directed at some unnamed organization that puts Sean Hannity and Bill O’Reilly on television every night. The criticism came in an editorial on the late, lamented Herman Cain campaign. After noting that Cain was in no way ready for prime time, the editorial asserted that Cain had too many flaws to take on President Barack Obama. At that point, the Journal dipped its toe, gingerly, into criticism of the right-wing media. Cain’s unelectability, it said, is the weakness that the talk-radio establishment overlooked when it dismissed the sexual-harassment accusations against Mr. Cain as one more left-wing conspiracy. Whether true or not, the accusations resulted in settlements by the National Restaurant Association, where he had...

GOP vs. Job Creators

In the ongoing battle over extending the payroll tax cuts that currently save the median American household about $1,000 a year, one salient point is commonly overlooked: The proposal that the Obama administration and congressional Democrats are championing also cuts in half the payroll tax for employers. Currently, employers are subjected to a payroll tax of 6.2 percent on every paycheck they write. The Democratic proposal would reduce that to 3.1 percent on the first $5 million in taxable payroll—that is, it would chiefly benefit small and middle-sized businesses. Yet every Senate Republican but one (Maine’s Susan Collins) voted against this proposal when it came to a vote on Thursday, complaining that it taxed job creators by proposing to off set the tax cut by raising taxes on individuals and couples for that portion of their annual income in excess of $1 million. Never mind that that the Treasury Department has concluded that only 1 percent of those taxpayers are small businesses...

Back from China?

A s in hundreds of cities and towns in the once-industrial Midwest, a ghost not only haunts but dominates North Canton, Ohio. It’s a ghost of brick and mortar, glass and steel, of a smokestack that rises directly across the street from the City Hall and the Chamber of Commerce. The ghost’s name is still painted on the smokestack, four years after the factory beneath it clanged to a halt. “Hoover,” it says—as in Hoover Vacuum Cleaner, a company founded in North Canton in 1908 that was the town’s largest employer, and leading citizen, for one year short of a century. At its height, Hoover’s North Canton empire spread over 17 factories and buildings, one of them a private hospital for local Hoover workers (as many as 7,000 during the company’s flush decades) who took sick or were injured on the job. “This was Hooverville—our own version, not Herbert-Hooverville—a company town,” says Doug Lane, a former city councilor who now heads the Chamber of Commerce. “If the city needed a fire truck...

Republicans Deep-Six the NLRB

Doing filibustering Senate Republicans one better, the one Republican member on the (currently) three-member National Labor Relations Board appears to have decided to bring the board to a screeching halt by refusing to vote and thus denying it a quorum. In a letter made public yesterday, Republican Brian Hayes wrote fellow GOP-er John Kline, chairman of the House Education and Workforce Committee, that he might well not participate in the Board’s scheduled November 30 vote on changing the rules for union certification elections. The proposed rule change essentially would shorten the period between the time that workers file for a union-representation election and the election itself from the current time period, which is as long as management can delay a vote (sometimes, for years) to roughly three or four weeks. In his letter, Kline complained that he was not privy to some of the deliberations of the board (that is, of the two Democratic members) and thus might fail to show up for...

Busted in 'Bama

Last Wednesday night, a cop in Tuscaloosa, Alabama, pulled over a rental car that didn’t have the right tag on it. He asked the driver for his license, and the driver instead produced his German identification card. Before Alabama’s new immigration law took effect this fall, the driver would have been ticketed, but under the terms of the new law, the cop arrested the driver and hauled him off to the police station for the crime of lacking proper identification. In fairly short order, a colleague of the arrestee showed up with the driver’s passport, visa, and German driver’s license. At that point, the driver was released—but the story had just begun. Turns out the driver was a Mercedes executive in town to visit a Mercedes SUV plant about 20 miles outside Tuscaloosa, which employs roughly 2,800 Alabamians. And his arrest drew the immediate attention of Robert Bentley, the state’s Republican governor, who had signed the immigration bill into law. Bentley called his homeland security...

Occupy Wall Street: Seattle Redux?

AP Photo/Mary Altaffer
As in the anti-WTO demonstrations in Seattle in 1999, today’s nationwide Occupy Wall Street actions come in many shapes and sizes. There’s the enraged confrontations we’ve seen around Wall Street itself. There are the pre-arranged arrests we’ve seen in the banking district of downtown Los Angeles. There are permitted rallies sponsored by unions, which, as evening falls, will shift their locales to bridges around the nation in an attempt to loop the rebuild-the-decaying-infrastructure issue into the mélange of progressive causes that OWS champions. There’s an action for every mood and strategy –- though some strategies make a lot more sense than others. This afternoon, activists from unions (most particularly, SEIU) will march across bridges in Chicago, D.C., Philadelphia, Pittsburgh, Seattle, Miami, Baltimore, Detroit, Milwaukee, Minneapolis, L.A., New York (the granddaddy of all urban bridges, the one-and-only Brooklyn), and damn-near any American city that has a creek, an overpass,...

The Robots Are Coming!

Google, we learn from Monday’s New York Times , has a secret lab in an undisclosed location in the Bay Area where it is developing robots. We don’t know what the Google-oids are working on there, but we do know that the company has developed and built a driverless car that has already traversed 100,000 miles on California roads without getting either a ticket or a scratch. Surely, though, there are innumerable now-human activities that could be performed efficiently, and eventually more cheaply, by robots. On Tuesday, the Robot Report (“Tracking the business of robotics”) ran a story that Foxconn, the Taiwan-based manufacturer that employs roughly one million Chinese workers who assemble all of Apple’s products (and many of Dell’s and other high-tech companies) has broken ground on a factory in Taiwan to manufacture robots. Foxconn hopes to replace 500,000 of its Chinese workers, the Report says, with 1 million robots. If Foxconn succeeds at this venture, it will be yet another...

Why We Need Occupy Wall Street

AP Photo/John Minchillo
Today—the same day that New York’s Mayor Bloomberg had his cops clear Zuccotti Park—Richard Fisher, the president of the Federal Reserve Bank of Dallas, called for breaking up America’s biggest banks, calling them “too dangerous to permit.” Also today, Warren Buffett, in an interview posted on the Business Wire of Berkshire Hathaway, his company, continued his criticism of American plutocracy. “Through the tax code, there has been class warfare waged, and my class has won,” Buffett said. “It’s been a rout. You have seen a period where American workers generally have gone no place, and where the really super rich as a group increased their incomes five for one in this rarified atmosphere.” All of which suggests that Occupy Wall Street has already been a stunning success in changing the nation’s public discourse. Not that Fisher and Buffett hadn’t criticized our economic policies well before OWS set up shop in Zuccotti Park, but they are now not just rich and powerful voices crying out...

The Court Will Rule—and Then?

AP Photo/Alex Brandon
The Supreme Court’s decision today to take up the constitutionality of President Obama’s health-care reform in this session—they’ll hear oral arguments in March and rule by session’s end in June— means that the issue will be revived for voters just a few month before next November’s presidential election. This is probably good for Republicans no matter which way the justices rule. And, no matter which way the justices rule, I can’t see how this helps the Democrats. There are basically three ways the court could go. They could uphold the individual mandate; they could strike it down, which would essentially negate the rest of the law; or they could rule the issue can’t be litigated until 2015, when the federal government would levy the first penalties on persons who refuse to purchase insurance. Additionally, the court will rule on the important but still subsidiary issue of whether the feds can require the states to pick up additional Medicaid expenditures starting in 2016—but the...

Rosie the Riveter and the Ironies of Bentonville

When the doors swung open this morning on Alice Walton’s Crystal Bridges Museum of American Art in Bentonville, Arkansas—funded to the tune of $1.4 billion by the Walton Family Foundation—one of its prize possessions was Norman Rockwell’s iconic World War II-era painting of Rosie the Riveter. The painting features a confident, insouciant Rosie on her lunch break, eating a sandwich, with a riveting gun on her lap, a copy of Mein Kampf that she uses as a footstool, and an American flag fluttering in the background. Given the Walton family’s epic history of mistreating its company’s workers, and its company’s female workers more particularly, the inclusion of Rosie in the permanent collection is almost too ironic for words. Nonetheless (otherwise, this blog post would end right here), a few facts from the annals of Wal-Mart (approximately 48 percent of whose stock is still owned by the Walton family) are in order. Such as the average hourly wage of its 1.4 million American employees...

Banker's Choice

In this, Monday, Oct. 30, 2006 file photo provided by the Italian presidency, Italian President Giorgio Napolitano, right, shakes hands with Mario Monti on the occasion of the opening of the academic year at the Bocconi university in Milan. Italy's president has unexpectedly named Wednesday, Nov. 9, 2011, as a senator-for-life Mario Monti, the former European competition commissioner who is widely considered to be a top contender for the Italian premiership, now that Silvio Berlusconi has pledged to resign soon. The surprise move Wednesday night could be a prelude to Monti's getting the nod to head the next government. President Giorgio Napolitano's office announced he had chosen Monti, who now runs prestigious Bocconi University in Milan, for the honor. Senators-for-life include notable figures outside of politics and have voting privileges in the Senate. (AP Photo/Enrico Oliverio,Italian Presidency Press office, File)
So Greece has a new prime minister – Lucas Papademos – and Italy looks about to have a new one, too – Mario Monti. To which not just you and I but damn near every Italian and Greek responds, “Who?” Neither Papademos nor Monti has ever held elective office, or even run for one. Neither has been a minister, sub-minister or even civil servant in one of their nation’s ministries. Neither has developed, or sought to develop, a public following from their careers as economic technicians, chiefly on the European supra-national level. Yet each is about to lead a major nation. Papademos and Monti are something new under the sun: national leaders elected by the markets. Imposed, not as pro-consels by foreign occupiers, but by the European banking community, by the finance ministers of the Eurozone powers – chiefly, Germany and France. Each has an impressive resume and a good reputation with the centrist political and economic elites of his own nation, but there’s no reason why the person on the...

The Return of Sanity

Issue 2 opponents cheer at a rally co-sponsored by the Cleveland Teachers Union and We Are Ohio in Cleveland as they hear election results sounding the defeat of Issue 2 in the Ohio general election on Tuesday, Novmber 8, 2011. By voting no on Issue 2, Ohioans overturned the controversial Senate Bill 5, which, among other things, limited collective bargaining for 350,000 unionized public workers. (AP Photo/Amy Sancetta)
The common thread in yesterday’s unbroken string of Democratic and progressive victories was the popular rejection of right-wing overreach. From Ohio, where voters overturned by a margin of 61 percent to 39 percent Republican Governor John Kasich’s law stripping public employees of collective-bargaining rights; to Maine, where voters overturned by a margin of 60 percent to 40 percent Republican Governor Paul LePage’s law abolishing Election Day voter registration; to Arizona, where voters recalled Republican state Senate Leader Russell Pearce, the most vehemently anti-immigrant state legislator in the nation; to, will-wonders-never-cease, Mississippi, where voters rejected an initiative declaring a fertilized egg a person from the moment of conception, effectively outlawing abortion and just maybe birth control as well, by a decisive margin of 57 percent to 43 percent, voters shouted a resounding STOP to the rightward gallop of public policy at the hands of the radicalized Republican...

Bunga Bunga and the Bond Market

It’s clear that the markets don’t want Silvio Berlusconi to continue as Italy’s prime minister. They were cheered yesterday, briefly, when word got around that Berlusconi was stepping down, then subsided into their accustomed grumpiness when he denied it. (We know this by following the interest rates on Italy’s bonds, which are soaring, save during the brief moment when it was thought Berlusconi’s departure was nigh.) But the markets’ moment may be at hand. The leaders of two of Europe’s Mediterranean governments are either hanging by a thread (Berlusconi) or have already gone (Greece’s George Papandreou), unable to reconcile the demands of their people not to have their lives decimated by austerity with the markets’ demands for precisely such austerity. Such a moment marks a triumph of the market over democracy, queasy as I am to identify Berlusconi with democracy. After all, it was Berlusconi who brought the logic of the market, and of marketing, into Italian politics, controlling...

Judgment Day in Ohio

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It may be that all the millions of dollars spent by both sides and the tens of thousands of precinct walks they (well, chiefly labor) undertook in the battle to repeal Ohio’s Senate Bill 5, which nullified the collective-bargaining rights of the state’s public employees, merely ensured that Ohioans would vote the way they originally intended to. The latest poll taken before today’s election—from Public Policy Polling (PPP), completed this past weekend—showed that voters backed repeal by a whopping 23-point margin, 59 percent to 36 percent. As PPP noted, voters also backed repeal by a 23-point margin when they were first polled back in March. Initially, as Republican Governor John Kasich’s war on unions was moving through the state’s legislature, liberals feared that popular opposition was tepid. In Wisconsin, the crowds of protestors swelled to 100,000 in opposing that state’s legislation curtailing public employee’s collective-bargaining rights. The one demonstration in Columbus, by...

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