Poison Pill Politics l Charles Blow NYT

OP-ED COLUMNIST

Poison Pill Politics

The deadline has passed. The sequester is in effect. And Congress is not in session.

By CHARLES M. BLOW
Published: March 1, 2013

Damon Winter/The New York Times

Charles M. Blow

We now know that our political system is broken beyond anything even remotely resembling a functional government.

The ridiculous bill was designed as a poison pill, but Republicans popped it like a Pez. Now the body politic — weak with battle fatigue, jerked from crisis to crisis and struggling to recover from a recession — has to wait to see how severe the damage will be.

(The director of the Congressional Budget Office estimatesthat the sequester could cost 750,000 jobs in 2013 alone.)

This is all because Republicans have refused to even consider new revenue as part of a deal. That includes revenue from closing tax loopholes, a move they supposedly support.

As Speaker John Boehner said after his Congressional leaders met with President Obama on Friday:

“Let’s make it clear that the president got his tax hikes on Jan. 1. This discussion about revenue, in my view, is over.”

Boehner’s intransigence during the talks drew “cheers,” according to a report in The New York Times, from his chronically intransigent colleagues. But their position is a twist of the truth that is coming dangerously close to becoming accepted wisdom by sheer volume of repetition. It must be battled back every time it is uttered.

Let’s make this clear: it is wrong to characterize the American Taxpayer Relief Act as a “tax hike.” In reality, much of what it did was allow 18 percent of the Bush tax cuts — mostly those affecting the wealthiest Americans — to expire while permanently locking in a whopping 82 percent of them.

But of course, that misrepresentation fit with the tired trope of Democrats as tax-and-spend liberals. It also completely ignores that it was Bush-era spending that dug the ditch we’re in.

Republicans have defined their position, regardless of how reckless: austerity or bust. However, as economists have warned, austerity generally precedes — and, in fact, can cause — bust. Just look at Europe.

But Republicans are so dizzy over the deficits and delighted to lick the boots of billionaires that they cannot — or will not — see it. They are still trying to sell cut-to-grow snake oil: cut spending and cut taxes, and the economy will grow because rich people will be happy, and when rich people are happy they hire poor people, and then everyone’s happy.

This is the vacuous talk of politicians trying to placate people with vacation homes, not a sensible solution for people trying to purchase, or simply retain, their first homes.

Now the president is trying to make the best of a bad situation and bring expectations in line with what is likely to happen.

When Gallup this week asked Americans to use one word to describe the sequester, negative words outnumbered good words four to one. The top three negative words or phrases were “bad,” “disaster” and “God help us.”

At a news conference after Friday’s meeting with Congressional leaders, the president tried to tamp down some of the most dire predictions about the sequester’s impact. He said:

“What’s important to understand is that not everyone will feel the pain of these cuts right away. The pain, though, will be real.”

The president knows well that if the sequester’s effects are so diffused that the public — whose attention span is as narrow as a cat’s hair — doesn’t connect them to their source, people might think the administration cried wolf.

That’s why he said, and will most likely continue to say for months, “So every time that we get a piece of economic news over the next month, next two months, next six months, as long as the sequester’s in place we’ll know that that economic news could have been better if Congress had not failed to act.”

He must yoke this pain to the people who invited it. It’s not as though most Americans don’t already think poorly of Republicans anyway.

Pew Research Center report released this week found that most Americans think the Republican Party, unlike the Democratic Party, is out of touch with the American people and too extreme. And most Americans did not see Republicans as open to change or looking out for the country’s future as much as Democrats.

The president said Friday that “there is a caucus of common sense up on Capitol Hill” that includes Congressional Republicans who “privately at least” were willing to close loopholes to prevent the sequester.

Those privately reasonable Republicans might want to be more public before their party goes over another cliff and takes the country with them.

I invite you to join me on Facebook and follow me on Twitter, or e-mail me atchblow@nytimes.com.

A version of this op-ed appeared in print on March 2, 2013, on page A19 of the New York edition with the headline: Poison Pill Politics.
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Related in Opinion

Economic Mobility For African Americans May Be A Myth l Pew Report Finding

Economic Mobility For African Americans May Be A Myth, Pew Report Shows

The Huffington Post  |  By  Posted: 07/17/2012

Economic Mobility

The fine line between the American Dream and the African-American Dream is becoming more distinct, according to a recent report by the Pew Charitable Trusts, a nonprofit research organization.

The survey of economic mobility across generations compared the income and wealth of Americans with that of their parents at the same age, and it offered a promising outlook for most Americans — 84 percent to be exact — who were shown to have higher incomes than their parents, when adjusted for inflation.

African Americans, however, haven’t had the same success, with just 23 percent of blacks raised in the middle class surpassing their parents’ family wealth, compared to 56 percent of whites.

The study’s project manager, Erin Currier, said the results aren’t far off from what a simliar 2008 survey found. “With this newest update to the data, we can see that not much has changed with a few more years of data added in,” Currier told The Huffington Post. “Specifically, African Americans are much more likely than whites to be stuck at the bottom of the income ladder over a generation, and also at the bottom of the wealth ladder,” she said. They’re also more likely to fall from the middle.

Currier and her team analyzed income data over five years from the University of Michigan’s Panel Study of Income Dynamics (PSID), a nationally representative sample of more than 18,000 individuals living in 5,000 families in the United States. During the years they chose — 1967, ’68, ’69, ’70 and ’71 for the parents; 2000, ’02, ’04, ’06 and ’08 for their kids — both groups were at a common age (in their early to mid 40s) and at similar positions of marriage, income parity and post-secondary education, Currier said.

“It is the case that African-American families manage to get to the middle class and they have some sense of economic security, but their ability to pass that on to their kids is not as high as the white families,” she said.

And while this particular study didn’t delve into specific reasons for this gap, Currier pointed to previous research showing the impact neighborhood poverty has had on maintaining wealth disparities over time. “Two thirds of African-American children born between 1985 and 2000 are being raised in high poverty neighborhoods,” compared to just six percent of white children, Currier noted, proportions that haven’t shifted much over the last 30 years. “It isn’t the case that two thirds of African-American families are poor, but a lot of even middle-class African-American families are living in high poverty neighborhoods and research shows that, that environment in childhood increases a person’s chance of downward mobility by 52 percent,” she added.

A study published in May by the National Bureau of Economic Research may have hinted at one of the barriers to moving out of those poverty-stricken neighborhoods, revealing that black and Hispanic homebuyers pay as much as 3 percent more for their homes, regardless of their income, wealth or credit profiles.

Pew research has also examined the roles that marital status andincarceration have played in the black-white economic mobility gap in recent years. Meanwhile, others have looked at the roles of higher education and even differences by region. (Those with a college degree and those who live in the Northeast U.S. have a higher chance of moving up, researchers say.)

Since 2006, Currier and her team have set out to examine the health and status of the American Dream, which she says is more than a cliche, but rather a part of our national fabric based on the notion that your children can do better than you did.

“Our research shows a pretty mixed view of the degree to which that’s true,” she said. “On one hand, there has been significant economic growth over the last generation, [wealth that] has been broadly, equally shared. But at the same time, we see some lack of movement on the ladder as a whole.” So even though Gen Xers may have greater incomes than their parents did within a certain income bracket, they may not make enough to move to the next bracket up, Currier explained.

That finding contradicts what is said to be the crux of the American Dream, that all Americans have equality of opportunity regardless of their economic status at birth.

“A defining factor of the American dream is that a person’s family background or income has no bearing on where he or she ends up, but the study shows otherwise,” Currier said in an interview with the Poughkeepsie Journal.

NEW IASP STUDY OFFERS NEW UNDERSTANDING OF FACTORS DRIVING RACIAL WEALTH GAP l THE HELLER SCHOOL FOR SOCIAL POLICY AND MANAGEMENT

 

The Institute on Assets and Social Policy (IASP) develops strategies, processes, and policy alternatives that enable vulnerable populations to build resources and access opportunities to live securely and participate fully in all aspects of social and economic life.

NEW IASP STUDY OFFERS NEW UNDERSTANDING OF FACTORS DRIVING RACIAL WEALTH GAP 

The dramatic gap in household wealth that now exists along racial lines in the United States cannot be attributed to personal ambition and behavioral choices, but rather reflects policies and institutional practices that create different opportunities for whites and African-Americans, new research shows.

So powerful are these government policies and institutional practices that for typical families, a $1 increase in average income over the 25-year study period generates just $0.69 in additional wealth for an African-American household compared with $5.19 for a white household, in part because black households have  fewer opportunities to grow their savings beyond what’s needed for emergencies.

This groundbreaking study, The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide, statistically validates five “fundamental factors” that together largely explain why white households accumulate wealth so much faster over time than African-American households.

On February 27, 2013 there was a webinar hosted by the Insight Center’s Closing the Racial Wealth Gap InitiativePolicyLink, and Tom Shapiro, Director of the Institute on Assets and Social Policy at Brandeis University.  This webinar presented breakthrough research on what has been fueling our country’s growing racial wealth divide for the past 25 years.  Click here to listen to the playback.

As America continues to become more diverse, the nation’s ability to achieve sustained growth and prosperity hinges on how quickly we can erase lingering racial and class divides and fully apply everyone’s talents and creativity to building the next economy.

Featured Projects

IASP Partners with Compass Working Capital’s Financial Stability and Savings Program

Compass Working Capital, a small innovative CBO, was selected for funding by Strategic Grant Partners, Boston, MA, to implement an experimental asset-building approach to the HUD Family Self-Sufficiency (FSS) program for recipients of housing vouchers in Lynn, MA. IASP is developing and implementing the process and outcome evaluations and the preliminary cost/benefit analysis for this pilot FSS program. The multi-year evaluation focuses on how families use this opportunity to move toward economic stability, positive impacts sustained after program graduation, and the cost-effectiveness of taking the program to scale.

Senior Economic Security

Image of elderly woman

IASP examines the long-term economic stability and risk of senior citizens. The “Living Longer on Less” series, released in collaboration with Dēmos, includes:

Rising Economic Insecurity among Senior Single Women, October 2011 •  This most recent report in the series reveals that nearly half (47%) of all senior single women in America do not have adequate retirement resources to meet even their most basic needs for the remainder of their lives, and this number is rising.

The Crisis of Economic Insecurity for African-American and Latino Seniors, September 2011 •  This report reveals crisis levels of economic insecurity among current African-American and Latino seniors—52% of African-American and 56% of Latino seniors do not have adequate retirement resources to meet their basic needs throughout their expected life-spans. Driven by extremely low levels of asset wealth and high housing costs, most seniors of color are struggling financially during their elder years.

From Bad to Worse: Senior Economic Insecurity on the Rise, July 2011   The first in a series of four research briefs, this report shows a troublesome trend of increased economic insecurity among senior households in just four years (2004-2008). Economic insecurity among seniors increased by one-third during this period, from 27% to 36%.

Previous reports in the “Living Longer on Less” series include:

Debtor’s Hell – What to do about debt and debt collection harassment l Another Kind of Financial Crime in America

 

The battle by Joanne M. Johnson of Leominster, who lives on a disability check, to get her car back took an emotional toll. (Globe Staff Photo / Michele McDonald)

If you are being hounded by debt collectors. STOP ! Don’t talk to them. Let them call. DON’T TALK TO THEM. Find out if they are licensed to collect in your state and what your state rights are. If they are not licensed in most states, they have no legal standing to collect from you ! Get on the web and get your free credit report that you are entitled to annually from all the Credit Reporting agencies. Find out who is listing you as owing and is a collector ( meaning you never owed them any $$ ever directly). Get the address and then go here. DO NOT FALL FOR ANY SERVICE THAT CHARGES YOU TO HANDLE THIS. There is NOTHING that they can do, that you can’t do. Then study this site which is outstanding to guide you in what your next step is. IF IT IS BAD, study this site and get a very clear training on how to handle your debt collectors problems. All the education, form letters and addresses, etc are on this board. There is a sane way out. This was one of the first web projects that I was involved in putting together. These people know their stuff and there are lots of people willing to help. State and federal laws regulate how these bottomfeeders behave.

Get your education and get them off your back here . . . CreditBoards

A few of the many forums with detailed information and discussion that you will find . . 

Credit Forum

Credit Reports, Collections, Credit Cards and related discussion

Medical Billing & Medical Collections

Discussion of medical billing issues and collections.

Bankruptcy

Bankruptcy discussion

Foreclosures/Loan Modifications

While every lender, foreclosure and modification situation is different, this is a place to discuss and share your experiences.

 

Chexsystems Help

Discussion and help for consumers who have trouble getting a bank account.

   

Debt Consolidation, Counseling and Management

Discussion of debt management inc’ DMP’s, consolidation, settlement and consumer credit counseling

Military Credit

For the credit issues that are unique to our military members

In 2006, a  Boston Globe Spotlight Team investigation into the world of consumer debt in the United States found a system where debt collectors have a lopsided advantage, debtors are often treated shabbily by collectors and the courts, and consumers can quickly find themselves in a life-upending financial crisis.

 

No mercy for consumers

Firms’ tactics are one mark of a system that penalizes those who owe

This story was reported by Spotlight team members Michael Rezendes, Beth Healy, Francie Latour, Heather Allen, and editor Walter V. Robinson. It was written by Rezendes and Latour.

First of four parts | July 30, 2006

   READ THE FULL SERIES HERE

This Boston Globe Spotlight Team investigation into the world of consumer debt in the United States found a system where debt collectors have a lopsided advantage, debtors are often treated shabbily by collectors and the courts, and consumers can quickly find themselves in a life-upending financial crisis. Audio AUDIO: Spotlight reporters talk about the series
Debtors' Hell -- Peter Damon
(Michele McDonald / Globe Staff)

Dignity faces a steamroller

Debtors' Hell -- Connie Sorenson

Enforcers’ might goes unchecked

MA Help & advice: ( Laws and agencies in other States vary.  Start with the State Banking regulators)

Groups & associations:

Independent Lens | Byron Hurts’ ‘Soul Food Junkies’ – Premieres January 14th

Independent Lens | ‘Soul Food Junkies’ – Premieres January 14th

Premiering January 14, 2013 (check local listings):

http://www.pbs.org/independentlens/broadcast.html

A Film by Byron Hurt

In this excerpt from the Independent Lens documentary, Soul Food Junkies, filmmaker Byron Hurt visits Jackson, Mississippi to learn more about soul food cooking and describes some of the health concerns related to traditional Southern cuisine.

About the Film

Baffled by his dad’s reluctance to change his traditional soul food diet in the face of a health crisis, filmmaker Byron Hurt sets out to learn more about this rich culinary tradition and it’s relevance to black cultural identity. He discovers that the love affair that his dad and his community have with soul food is deep-rooted, complex, and in some tragic cases, deadly. Through candid interviews with soul food cooks, historians and scholars, as well as doctors, family members, and everyday people, Soul Food Junkies puts this culinary tradition under the microscope to examine both its benefits and consequences. Hurt looks at the socioeconomics of predominantly black neighborhoods, where it can be difficult to find healthy options, and wonders if soul food has become an addiction in his community.

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Mark Anthony Neal  l  NewBlackMan

Byron Hurt is an OUR COMMON GROUND Voice

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America’s Real Criminal Element: Lead

America’s Real Criminal Element: Lead

New research finds Pb is the hidden villain behind violent crime, lower IQs, and even the ADHD epidemic. And fixing the problem is a lot cheaper than doing nothing.

—By 

from Mother Jones   | January/February 2013 Issue

  • lead and crimeIllustration: Gérard DuBois

WHEN RUDY GIULIANI RAN FOR MAYOR of New York City in 1993, he campaigned on a platform of bringing down crime and making the city safe again. It was a comfortable position for a former federal prosecutor with a tough-guy image, but it was more than mere posturing. Since 1960, rape rates had nearly quadrupled, murder had quintupled, and robbery had grown fourteenfold. New Yorkers felt like they lived in a city under siege.

 

Throughout the campaign, Giuliani embraced a theory of crime fighting called “broken windows,” popularized a decade earlier by James Q. Wilson and George L. Kelling in an influential article in The Atlantic. “If a window in a building is broken and is left unrepaired,” they observed, “all the rest of the windows will soon be broken.” So too, tolerance of small crimes would create a vicious cycle ending with entire neighborhoods turning into war zones. But if you cracked down on small crimes, bigger crimes would drop as well. 

Giuliani won the election, and he made good on his crime-fighting promises by selecting Boston police chief Bill Bratton as the NYPD’s new commissioner. Bratton had made his reputation as head of the New York City Transit Police, where he aggressively applied broken-windows policing to turnstile jumpers and vagrants in subway stations. With Giuliani’s eager support, he began applying the same lessons to the entire city, going after panhandlers, drunks, drug pushers, and the city’s hated squeegee men. And more: He decentralized police operations and gave precinct commanders more control, keeping them accountable with a pioneering system called CompStat that tracked crime hot spots in real time.

The results were dramatic. In 1996, the New York Times reported that crime had plunged for the third straight year, the sharpest drop since the end of Prohibition. Since 1993, rape rates had dropped 17 percent, assault 27 percent, robbery 42 percent, and murder an astonishing 49 percent. Giuliani was on his way to becoming America’s Mayor and Bratton was on the cover of Time. It was a remarkable public policy victory.

But even more remarkable is what happened next. Shortly after Bratton’s star turn, political scientist John DiIulio warned that the echo of the baby boom would soon produce a demographic bulge of millions of young males that he famously dubbed “juvenile super-predators.” Other criminologists nodded along. But even though the demographic bulge came right on schedule, crime continued to drop. And drop. And drop. By 2010, violent crime rates in New York City had plunged 75 percent from their peak in the early ’90s.

All in all, it seemed to be a story with a happy ending, a triumph for Wilson and Kelling’s theory and Giuliani and Bratton’s practice. And yet, doubts remained. For one thing, violent crime actually peaked in New York City in 1990, four years before the Giuliani-Bratton era. By the time they took office, it had already dropped 12 percent.

THE PB EFFECT

What happens when you expose a generation of kids to high lead levels? Crime and teen pregnancy data two decades later tell a startling story.

Second, and far more puzzling, it’s not just New York that has seen a big drop in crime. In city after city, violent crime peaked in the early ’90s and then began a steady and spectacular decline. Washington, DC, didn’t have either Giuliani or Bratton, but its violent crime rate has dropped 58 percent since its peak. Dallas’ has fallen 70 percent. Newark: 74 percent. Los Angeles: 78 percent.

There must be more going on here than just a change in policing tactics in one city. But what?
THERE ARE, IT TURNS OUT, plenty of theories. When I started research for this story, I worked my way through a pair of thick criminology tomes. One chapter regaled me with the “exciting possibility” that it’s mostly a matter of economics: Crime goes down when the economy is booming and goes up when it’s in a slump. Unfortunately, the theory doesn’t seem to hold water—for example, crime rates have continued to drop recently despite our prolonged downturn.

Another chapter suggested that crime drops in big cities were mostly a reflection of the crack epidemic of the ’80s finally burning itself out. A trio of authors identified three major “drug eras” in New York City, the first dominated by heroin, which produced limited violence, and the second by crack, which generated spectacular levels of it. In the early ’90s, these researchers proposed, the children of CrackGen switched to marijuana, choosing a less violent and more law-abiding lifestyle. As they did, crime rates in New York and other cities went down.

Another chapter told a story of demographics: As the number of young men increases, so does crime. Unfortunately for this theory, the number of young men increased during the ’90s, but crime dropped anyway.

There were chapters in my tomes on the effect of prison expansion. On guns and gun control. On family. On race. On parole and probation. On the raw number of police officers. It seemed as if everyone had a pet theory. In 1999, economist Steven Levitt, later famous as the coauthor of Freakonomics, teamed up with John Donohue to suggest that crime dropped because of Roe v. Wade; legalized abortion, they argued, led to fewer unwanted babies, which meant fewer maladjusted and violent young men two decades later.

But there’s a problem common to all of these theories: It’s hard to tease out actual proof. Maybe the end of the crack epidemic contributed to a decline in inner-city crime, but then again, maybe it was really the effect of increased incarceration, more cops on the beat, broken-windows policing, and a rise in abortion rates 20 years earlier. After all, they all happened at the same time.

To address this problem, the field of econometrics gives researchers an enormous toolbox of sophisticated statistical techniques. But, notes statistician and conservative commentator Jim Manzi in his recent book Uncontrolled, econometrics consistently fails to explain most of the variation in crime rates. After reviewing 122 known field tests, Manzi found that only 20 percent demonstrated positive results for specific crime-fighting strategies, and none of those positive results were replicated in follow-up studies.

DID LEAD MAKE YOU DUMBER?

Even low levels have a significant effect.

So we’re back to square one. More prisons might help control crime, more cops might help, and better policing might help. But the evidence is thin for any of these as the main cause. What are we missing?

Experts often suggest that crime resembles an epidemic. But what kind? Karl Smith, a professor of public economics and government at the University of North Carolina-Chapel Hill, has a good rule of thumb for categorizing epidemics: If it spreads along lines of communication, he says, the cause is information. Think Bieber Fever. If it travels along major transportation routes, the cause is microbial. Think influenza. If it spreads out like a fan, the cause is an insect. Think malaria. But if it’s everywhere, all at once—as both the rise of crime in the ’60s and ’70s and the fall of crime in the ’90s seemed to be—the cause is a molecule.

A molecule? That sounds crazy. What molecule could be responsible for a steep and sudden decline in violent crime?

Well, here’s one possibility: Pb(CH2CH3)4.
IN 1994, RICK NEVIN WAS A CONSULTANT working for the US Department of Housing and Urban Development on the costs and benefits of removing lead paint from old houses. This has been a topic of intense study because of the growing body of research linking lead exposure in small children with a whole raft of complications later in life, including lower IQ, hyperactivity, behavioral problems, and learning disabilities.

But as Nevin was working on that assignment, his client suggested they might be missing something. A recent study had suggested a link between childhood lead exposure and juvenile delinquency later on. Maybe reducing lead exposure had an effect on violent crime too?

That tip took Nevin in a different direction. The biggest source of lead in the postwar era, it turns out, wasn’t paint. It was leaded gasoline. And if you chart the rise and fall of atmospheric lead caused by the rise and fall of leaded gasoline consumption, you get a pretty simple upside-down U: Lead emissions from tailpipes rose steadily from the early ’40s through the early ’70s, nearly quadrupling over that period. Then, as unleaded gasoline began to replace leaded gasoline, emissions plummeted.

Gasoline lead may explain as much as 90 percent of the rise and fall of violent crime over the past half century.

Intriguingly, violent crime rates followed the same upside-down U pattern. The only thing different was the time period: Crime rates rose dramatically in the ’60s through the ’80s, and then began dropping steadily starting in the early ’90s. The two curves looked eerily identical, but were offset by about 20 years.

So Nevin dove in further, digging up detailed data on lead emissions and crime rates to see if the similarity of the curves was as good as it seemed. It turned out to be even better: In a 2000 paper (PDF) he concluded that if you add a lag time of 23 years, lead emissions from automobiles explain 90 percent of the variation in violent crime in America. Toddlers who ingested high levels of lead in the ’40s and ’50s really were more likely to become violent criminals in the ’60s, ’70s, and ’80s.

And with that we have our molecule: tetraethyl lead, the gasoline additive invented by General Motors in the 1920s to prevent knocking and pinging in high-performance engines. As auto sales boomed after World War II, and drivers in powerful new cars increasingly asked service station attendants to “fill ‘er up with ethyl,” they were unwittingly creating a crime wave two decades later.

It was an exciting conjecture, and it prompted an immediate wave of…nothing. Nevin’s paper was almost completely ignored, and in one sense it’s easy to see why—Nevin is an economist, not a criminologist, and his paper was published in Environmental Research, not a journal with a big readership in the criminology community. What’s more, a single correlation between two curves isn’t all that impressive, econometrically speaking. Sales of vinyl LPs rose in the postwar period too, and then declined in the ’80s and ’90s. Lots of things follow a pattern like that. So no matter how good the fit, if you only have a single correlation it might just be a coincidence. You need to do something more to establish causality.

As it turns out, however, a few hundred miles north someone was doing just that. In the late ’90s, Jessica Wolpaw Reyes was a graduate student at Harvard casting around for a dissertation topic that eventually became a study she published in 2007 as a public health policy professor at Amherst. “I learned about lead because I was pregnant and living in old housing in Harvard Square,” she told me, and after attending a talk where futureFreakonomics star Levitt outlined his abortion/crime theory, she started thinking about lead and crime. Although the association seemed plausible, she wanted to find out whether increased lead exposure caused increases in crime. But how?

In states where consumption of leaded gasoline declined slowly, crime declined slowly. Where it declined quickly, crime declined quickly.

The answer, it turned out, involved “several months of cold calling” to find lead emissions data at the state level. During the ’70s and ’80s, the introduction of the catalytic converter, combined with increasingly stringent Environmental Protection Agency rules, steadily reduced the amount of leaded gasoline used in America, but Reyes discovered that this reduction wasn’t uniform. In fact, use of leaded gasoline varied widely among states, and this gave Reyes the opening she needed. If childhood lead exposure really did produce criminal behavior in adults, you’d expect that in states where consumption of leaded gasoline declined slowly, crime would decline slowly too. Conversely, in states where it declined quickly, crime would decline quickly. And that’s exactly what she found.

Meanwhile, Nevin had kept busy as well, and in 2007 he published a new paper looking atcrime trends around the world (PDF). This way, he could make sure the close match he’d found between the lead curve and the crime curve wasn’t just a coincidence. Sure, maybe the real culprit in the United States was something else happening at the exact same time, but what are the odds of that same something happening at several different times in several different countries?

Nevin collected lead data and crime data for Australia and found a close match. Ditto for Canada. And Great Britain and Finland and France and Italy and New Zealand and West Germany. Every time, the two curves fit each other astonishingly well. When I spoke to Nevin about this, I asked him if he had ever found a country that didn’t fit the theory. “No,” he replied. “Not one.”

Just this year, Tulane University researcher Howard Mielke published a paper with demographer Sammy Zahran on the correlation of lead and crime at the city level. They studied six US cities that had both good crime data and good lead data going back to the ’50s, and they found a good fit in every single one. In fact, Mielke has even studied lead concentrations at the neighborhood level in New Orleans and shared his maps with the local police. “When they overlay them with crime maps,” he told me, “they realize they match up.”

LOCATION, LOCATION, LOCATION

In New Orleans, lead levels can vary dramatically from one neighborhood to the next—and the poorest neighborhoods tend to be the worst hit.

Maps by Karen Minot

Put all this together and you have an astonishing body of evidence. We now have studies at the international level, the national level, the state level, the city level, and even the individual level. Groups of children have been followed from the womb to adulthood, and higher childhood blood lead levels are consistently associated with higher adult arrest rates for violent crimes. All of these studies tell the same story: Gasoline lead is responsible for a good share of the rise and fall of violent crime over the past half century.

When differences of atmospheric lead density between big and small cities largely went away, so did the difference in murder rates.

Like many good theories, the gasoline lead hypothesis helps explain some things we might not have realized even needed explaining. For example, murder rates have always been higher in big cities than in towns and small cities. We’re so used to this that it seems unsurprising, but Nevin points out that it might actually have a surprising explanation—because big cities have lots of cars in a small area, they also had high densities of atmospheric lead during the postwar era. But as lead levels in gasoline decreased, the differences between big and small cities largely went away. And guess what? The difference in murder rates went away too. Today, homicide rates are similar in cities of all sizes. It may be that violent crime isn’t an inevitable consequence of being a big city after all.

The gasoline lead story has another virtue too: It’s the only hypothesis that persuasively explains both the rise of crime in the ’60s and ’70s and its fall beginning in the ’90s. Two other theories—the baby boom demographic bulge and the drug explosion of the ’60s—at least have the potential to explain both, but neither one fully fits the known data. Only gasoline lead, with its dramatic rise and fall following World War II, can explain the equally dramatic rise and fall in violent crime.

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The Financial Elite’s War Against the US Economy

Published on Monday, December 31, 2012 by Naked Capitalism

The Financial Elite’s War Against the US Economy

Today’s economic warfare is not the kind waged a century ago between labor and its industrial employers. Finance has moved to capture the economy at large, industry and mining, public infrastructure (via privatization) and now even the educational system. (At over $1 trillion, U.S. student loan debt came to exceed credit-card debt in 2012.) The weapon in this financial warfare is no larger military force. The tactic is to load economies (governments, companies and families) with debt, siphon off their income as debt service and then foreclose when debtors lack the means to pay. Indebting government gives creditors a lever to pry away land, public infrastructure and other property in the public domain. Indebting companies enables creditors to seize employee pension savings. And indebting labor means that it no longer is necessary to hire strikebreakers to attack union organizers and strikers.

Workers have become so deeply indebted on their home mortgages, credit cards and other bank debt that they fear to strike or even to complain about working conditions. Losing work means missing payments on their monthly bills, enabling banks to jack up interest rates to levels that used to be deemed usurious. So debt peonage and unemployment loom on top of the wage slavery that was the main focus of class warfare a century ago. And to cap matters, credit-card bank lobbyists have rewritten the bankruptcy laws to curtail debtor rights, and the referees appointed to adjudicate disputes brought by debtors and consumers are subject to veto from the banks and businesses that are mainly responsible for inflicting injury.

The aim of financial warfare is not merely to acquire land, natural resources and key infrastructure rents as in military warfare; it is to centralize creditor control over society. In contrast to the promise of democratic reform nurturing a middle class a century ago, we are witnessing a regression to a world of special privilege in which one must inherit wealth in order to avoid debt and job dependency.

The emerging financial oligarchy seeks to shift taxes off banks and their major customers (real estate, natural resources and monopolies) onto labor. Given the need to win voter acquiescence, this aim is best achieved by rolling back everyone’s taxes. The easiest way to do this is to shrink government spending, headed by Social Security, Medicare and Medicaid. Yet these are the programs that enjoy the strongest voter support. This fact has inspired what may be called the Big Lie of our epoch: the pretense that governments can only create money to pay the financial sector, and that the beneficiaries of social programs should be entirely responsible for paying for Social Security, Medicare and Medicaid, not the wealthy. This Big Lie is used to reverse the concept of progressive taxation, turning the tax system into a ploy of the financial sector to levy tribute on the economy at large.

Financial lobbyists quickly discovered that the easiest ploy to shift the cost of social programs onto labor is to conceal new taxes as user fees, using the proceeds to cut taxes for the elite 1%. This fiscal sleight-of-hand was the aim of the 1983 Greenspan Commission. It confused people into thinking that government budgets are like family budgets, concealing the fact that governments can finance their spending by creating their own money. They do not have to borrow, or even to tax (at least, not tax mainly the 99%).

The Greenspan tax shift played on the fact that most people see the need to save for their own retirement. The carefully crafted and well-subsidized deception at work is that Social Security requires a similar pre-funding – by raising wage withholding. The trick is to convince wage earners it is fair to tax them more to pay for government social spending, yet not also to ask the banking sector to pay similar a user fee to pre-save for the next time it itself will need bailouts to cover its losses. Also asymmetrical is the fact that nobody suggests that the government set up a fund to pay for future wars, so that future adventures such as Iraq or Afghanistan will not “run a deficit” to burden the budget. So the first deception is to treat only Social Security and medical care as user fees. The second is to aggravate matters by insisting that such fees be paid long in advance, by pre-saving.

There is no inherent need to single out any particular area of public spending as causing a budget deficit if it is not pre-funded. It is a travesty of progressive tax policy to only oblige workers whose wages are less than (at present) $105,000 to pay this FICA wage withholding, exempting higher earnings, capital gains, rental income and profits. The raison d’être for taxing the 99% for Social Security and Medicare is simply to avoid taxing wealth, by falling on low wage income at a much higher rate than that of the wealthy. This is not how the original U.S. income tax was created at its inception in 1913. During its early years only the wealthiest 1% of the population had to file a return. There were few loopholes, and capital gains were taxed at the same rate as earned income.

By not raising taxes on the wealthy or using the central bank to monetize spending on anything except bailing out the banks and subsidizing the financial sector, the government follows a pro-creditor policy. Tax favoritism for the wealthy deepens the budget deficit, forcing governments to borrow more. Paying interest on this debt diverts revenue from being spent on goods and services. This fiscal austerity shrinks markets, reducing tax revenue to the brink of default.

The government’s seashore insurance program, for instance, recently incurred a $1 trillion liability to rebuild the private beaches and homes that Hurricane Sandy washed out. Why should this insurance subsidy at below-commercial rates for the wealthy minority who live in this scenic high-risk property be treated as normal spending, but not Social Security? Why save in advance by a special wage tax to pay for these programs that benefit the general population, but not levy a similar “user fee” tax to pay for flood insurance for beachfront homes or war? And while we are at it, why not save another $13 trillion in advance to pay for the next bailout of Wall Street when debt deflation causes another crisis to drain the budget?

But on whom should we levy these taxes? To impose user fees for the beachfront reconstruction would require a tax falling mainly on the wealthy owners of such properties. Their dominant role in funding the election campaigns of the Congressmen and Senators who draw up the tax code suggests why they are able to avoid prepaying for the cost of rebuilding their seashore property. Such taxation is only for wage earners on their retirement income, not the 1% on their own vacation and retirement homes.

By not raising taxes on the wealthy or using the central bank to monetize spending on anything except bailing out the banks and subsidizing the financial sector, the government follows a pro-creditor policy. Tax favoritism for the wealthy deepens the budget deficit, forcing governments to borrow more. Paying interest on this debt diverts revenue from being spent on goods and services. This fiscal austerity shrinks markets, reducing tax revenue to the brink of default. This enables bondholders to treat the government in the same way that banks treat a bankrupt family, forcing the debtor to sell off assets – in this case the public domain as if it were the family silver, as Britain’s Prime Minister Harold MacMillan characterized Margaret Thatcher’s privatization sell-offs.

In an Orwellian doublethink twist this privatization is done in the name of free markets, despite being imposed by global financial institutions whose administrators are not democratically elected. The International Monetary Fund (IMF), European Central Bank (ECB) and EU bureaucracy treat governments like banks treat homeowners unable to pay their mortgage: by foreclosing. Greece, for example, has been told to start selling off prime tourist sites, ports, islands, offshore gas rights, water and sewer systems, roads and other property.

Sovereign governments are, in principle, free of such pressure. That is what makes them sovereign. They are not obliged to settle public debts and budget deficits by asset selloffs. They do not need to borrow more domestic currency; they can create it. This self-financing keeps the national patrimony in public hands rather than turning assets over to private buyers, or having to borrow from banks and bondholders.

© 2012 Naked Capitalism
Michael Hudson

 

 

Michael Hudson is a research professor of Economics at University of Missouri, Kansas City, and a research associate at the Levy Economics Institute of Bard College. His latest book is “The Bubble and Beyond.”

Historically Black Colleges and Universities Rankings

Methodology: Historically Black Colleges and Universities Rankings

In total, there were 80 HBCUs eligible to be ranked.

September 11, 2012

For the sixth consecutive year, U.S. News & World Report has produced a ranking of the undergraduate education athistorically black colleges and universities (HBCU). These colleges were compared only with one another for these rankings.

How did we choose the schools to be part of the survey? In order to be on the list, a school currently must be listed as part of the U.S. Department of Education’s Historically Black Colleges and Universities registry.

The Higher Education Act of 1965 defines an HBCU as “any historically black college or university that was established prior to 1964, whose principal mission was, and is, the education of black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary [of Education] to be a reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation.”

To qualify for the U.S. News ranking, an HBCU also must be an undergraduate baccalaureate-granting institution that enrolls primarily first-year, first-time students and must have been a school that was currently part of the 2013 Best Colleges rankings. In almost all cases, if an HBCU was listed as Unranked in the 2013 Best Colleges rankings, it was also listed as being Unranked in the HBCU rankings (see more details below). In total, there were 80 HBCUs eligible to be ranked, and 8 of those were Unranked.

The data that were used in the HCBU rankings—except the peer survey results, which used a separate HBCU peer assessment survey—were the same as those published and used in the 2013 edition of the Best Colleges rankings.

The U.S. News rankings system rests on two pillars: It relies on quantitative measures that education experts have proposed as reliable indicators of academic quality, and it’s based on our nonpartisan view of what matters in education. The indicators we use to capture academic quality fall into six categories: assessment by administrators at peer institutions, retention of students, faculty resources, student selectivity, financial resources, and alumni giving.

The indicators include input measures that reflect a school’s student body, its faculty, and its financial resources, along with outcome measures—such as graduation rates and freshman retention rates—that signal how well the institution does its job of educating students.

The HBCU rankings are based on the same statistical methodology and weights used in the Best Colleges 2013 rankings for the schools in the Regional Universities andRegional Colleges ranking categories. Following are detailed descriptions of the statistical indicators and the weights that were used to measure academic quality among the HBCUs that were ranked:

Peer assessment (weighting: 25 percent): The U.S. Newsranking formula gives greatest weight to the opinions of those in a position to judge a school’s undergraduate academic excellence. The peer assessment survey allows the top HBCU academics we consult to account for intangibles such as faculty dedication to teaching. Each individual is asked to rate peer schools’ academic programs on a scale from 1 (marginal) to 5 (distinguished). Those who don’t know enough about a school to evaluate it fairly are asked to mark “don’t know.”

In spring and summer of 2012, U.S. News conducted an exclusive peer survey among only the president, provost, and admission dean at each HBCU. Each HBCU received three surveys. The recipients were asked to rate all HBCUs for their undergraduate academic quality, considering each school’s scholarship record, curriculum, and quality of faculty and graduates at schools with which they were familiar.

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http://www.usnews.com/education/articles/2012/09/11/methodology-historically-black-colleges-and-universities-rankings-2

Unraveling the Freddie-Fannie Tangle l ProPublica

Unraveling the Freddie-Fannie Tangle

The taxpayer-backed mortgage giants, Freddie Mac and Fannie Mae, play a huge and growing role in the economy yet are riven by conflicts of interest and clashing goals. (Pablo Martinez Monsivais/AP Photo)

by Jesse Eisinger and Cora Currier
ProPublica, Jan. 2, 2013, 10:09 a.m.

In the aftermath of the financial crisis, American taxpayers poured $187.5 billion into two huge but poorly understood companies: Freddie Mac and Fannie Mae. Now controlled by the government, the companies play an even larger role in the economy than they did before the crisis and their bailout, but they are riven by conflicts of interest and clashing goals. Are they private companies, only out to increase their profits, or are they instruments of government policy, dedicated to keeping home ownership available?

ProPublica has focused on the tensions within Freddie Mac and Fannie Mae, as well as those besetting their regulator, the Federal Housing Finance Agency (FHFA).

NPR’s Chris Arnold and ProPublica revealed that Freddie Mac had placed multibillion-dollar bets that pay off only if homeowners stay trapped in expensive mortgages with interest rates well above current rates. Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages.

The scoop, “Freddie Mac Bets Against American Homeowners,” caused an immediate firestorm. As countless media outlets picked up the story, multiple senators criticized the company and wrote to Edward DeMarco, the acting head of the FHFA, calling for an investigation into the transactions and the company’s activities.

The FHFA responded, saying it had told Freddie not to make any more transactions in the kind of securities at issue, called inverse floaters. The agency said it had “identified concerns regarding the controls, including risk management, surrounding the inverse floaters.” The agency did not specify those “concerns,” but said Freddie agreed in December that “these transactions would not resume pending completion of [FHFA’s] examination work.” The statement also said that Freddie had ceased making the deals earlier in 2011 but did not explain why.

 

Full Article and Relevant References at ProPublica

 

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Obama’s Grand Charade: Say No to the Staged Dismantling of Medicare and Social Security

Obama’s Grand Charade: Say No to the Staged Dismantling of Medicare and Social Security

Global Research, December 27, 2012
obamadoublespeak

Here we go again. President Obama is in round three of his ongoing efforts to cut our important social insurances, such as Social Security and Medicare. Whether he succeeds or not is up to us. We can create a stronger economy and healthier population by strengthening and expanding our social insurances and switching to a green energy economy.

Round 1: In April, 2010, shortly after President Obama signed into law a health bill that further privatizes our health care system and while all attention was on this ‘historic achievement’, Obama created the National Commission for Fiscal Responsibility and Reform. He appointed Alan Simpson and Erskine Bowles as chairs of what was commonly known as the Deficit Commission and loaded the panel with 14 deficit hawks out of the total of 18 appointees. The commission was given the power to create a deficit plan that would go to Congress for an up or down vote.

If there was still any question about the intent of the commission, those should have been answered by the fact that the Peter G. Peterson Foundation was working closely with them, providing support staff and hosting the America Speaks gatherings in the summer of 2010. Billionaire Pete Peterson has spent decades arguing for cuts to social insurances.

I attended an America Speaks event in Detroit in June, 2010 and it felt very similar to the Health Care House Parties that the Obama campaign promoted in December, 2008. The event materials were designed to manufacture consensus on how much to cut our social insurances. But, thepeople weren’t fooled and when the question of how much to cut Medicare was raised, many people demanded Medicare for all as a choice.

I also testified before the Deficit Commission in late June, 2010, arguing that Medicare for all would solve both our health and financial crises. But the Commission wasn’t concerned with effective solutions, instead it was laying the groundwork for the Grand Charade that would lead Americans to believe we have a deficit crisis and accept austerity measures.

The commissionwas unable to get enough votes among its members by its December deadline for issuing a report, so there was no vote in Congress on their recommendations, but many of their ideas appeared in Paul Ryan’s “Path to Prosperity” in early 2011. Simpson and Bowles also issued their own report which is often mistakenly labeled the report of the commission.

Round 2: In August, 2011, another committee was created and given the same power as the Deficit Committee. This group of 12 members of Congress, 6 from each body and 6 from each party, was known as the Super Committee.  This small committee with extraordinary power was unprecedented and represented a serioususurpation of the democratic process.

The Super Committee held hearings during the fall and was required to issue recommendations by Thanksgiving. From the start, the committee stated that everything was on the table, including social insurances. While they went through the motions of public hearings, the agreements were already being made in secret negotiations and they included cuts to vital programs.

In fact, by this time it was clear that President Obama was not only willing to accept cuts to Social Security and Medicare, two programs that are the pride of the Democratic Party, but was driving the processDocuments leaked show that Obama offered Boehner a “Grand Bargain” that included cuts to a broad array of social programs that would have hurt every American.

Like the Deficit Committee, the Super Committee failed to reach a consensus by the deadline. No doubt mobilized resistance to cuts to social programs made their task more difficult. The Occupy movement was in full swing, occupiers protested the Super Committee and some even walked to DC from NY, Philadelphia and Baltimore to protest. In Washington, DC, the occupation at Freedom Plaza held our own Super Committee Hearing.Our report, The 99%’s Deficit Proposal: How to create jobs, reduce the wealth divide and control spendingshowed that there were real solutions to our crises that were better for the people and were supported by supermajorities of the population.

Round 3: The so-called Fiscal Cliff is the current attempt to convince people that we will have to accept cuts to important programs. If enough people can be convinced that the sky is falling, then President Obama can make the cutshe has sought to make for years. No doubt giving Wall Street what it has wanted for a long time will be rewarded withhigh-paid speeches to big business when his presidency ends.

And this time, the President has the help of more than 80 CEO’s, led by Simpson and Bowles, to get the job done. The new “Fix the Debt” campaign is starting with a budget of $60 million for public ads and lobbying Congress. Why is big business getting involved? Cuts to social insurances will allow further cuts in corporate taxes.

This is reminiscent of a similar campaign called “Health Care for America Now” that helped the President pass a Wall Street health care bill. Like Health Care for America Now, the public will be convinced through a strategic propaganda campaign to make demands from Congress that go against their own interests. But, we shouldn’t expect anything less from a president who won marketing campaign of the year in 2008.

So, the president has upped the ante in this ongoing Grand Charade. And unless we take action, cuts to our important programs will cause real suffering and more preventable deaths. There are solutions to all of the crises that we face. We must demand that human needs and protection of the planet be a higher priority than corporate profits.

For example, if we improved Medicare and expanded it to every person in the US, we could effectively control our health care costs which are growing faster than GDP. Former president Clinton acknowledged that the U. S. could save $1 trillion each year by adopting a single payer system like almost every other developed nation. We would also improve health outcomes and end bankruptcy due to medical illness and costs.

Just like with health care, if we put in place the right policy for retirement we solve the problem and help the economy. The Census Bureau reports that in the last decade there has been a 78% increase in Americans over 60 facing the threat of hunger and one in six seniors live in poverty.Doubling Social Security would bring seniors out of poverty and be a giant stimulus to the economy. It would also be a great relief to every family.

Another popular solution is the Green New Deal promoted bythe Jill Stein campaignThe Green New Deal would create high quality jobs and transition the US to a renewable energy economy.

It’s time to end this Grand Charade. We mustn’t be fooled by this Wall Street agenda. As we’ve seen in Europe, austerity measures are harmful to people and the economy. For ideas on organizing resistance to these measures, see Solidarity against Austerity and Via 22.

Margaret Flowers is co-director of It’s Our Economy, co-host of Clearing the FOG Radio and an organizer of the occupation of Freedom Plaza in Washington, DC. She is also with the Health Care is a Human Right campaign in Maryland.