Al Franken will resign from Senate after more allegations of sexual improprieties

From today’s LA Times:

Al Franken announced Thursday he will resign his Senate seat, falling to a whirlwind of sexual misconduct allegations like those that have enmeshed other politicians, business leaders and media figures across the country in recent months.

The Minnesota Democrat, a second-term senator once seen as a potential presidential candidate in 2020 or beyond, earlier had said he would not leave office but would submit to a Senate ethics investigation into his behavior. He had acknowledged some misconduct, but denied other allegations.

His fate appeared sealed, however, on Wednesday, when more than half of Senate Democrats issued calls for his resignation in an uprising led by female senators. The choreographed move came as yet another woman came forward to accuse Franken of unwanted advances before he was elected to the Senate, and Senate Democratic leader Charles E. Schumer of New York privately met with Franken to tell him the time had come to quit.

Franken’s announcement marked the second departure this week of a once-heralded Democrat caught in unsavory accusations. On Tuesday, the senior member of the House, Rep. John Conyers Jr. of Michigan, quit after multiple complaints by aides that he had sexually harassed them.

The departure marks the end of the legislative career that began when Franken squeaked into office on an exceptionally narrow win, was reelected more easily and had emerged as a well-regarded member of the party’s growing liberal wing.

Franken’s resignation will not change the balance of power in the Senate, where Republicans hold the majority with 52 seats. Minnesota Gov. Mark Dayton, a fellow Democrat, will appoint a replacement to serve until a special election can be held in November 2018. The winner of that election will hold the seat until what would have been the end of Franken’s second term, in January 2021.

Read the entire article here.

Rep. John Conyers (D-MI) to resign amid many accusations of sexual harassment

From today’s LA Times:

Rep. John Conyers Jr. of Michigan, the longest-serving member of the House of Representatives, resigned Tuesday after his support among fellow Democrats collapsed amid accusations of sexual harassment by several female employees.

Conyers endorsed his son, John Conyers III, in a rambling radio interview with Detroit host Mildred Gaddis.

“I am retiring today, and I want everyone to know how much I appreciate the support, incredible undiminished support I’ve received,” Conyers said.

Conyers’ use of the word “retiring” rather than “resigning” left some uncertainty over when he was vacating the congressional seat he has held since 1965. Later in the day, however, he sent a letter to congressional leaders saying he was stepping down “effective today.”

Conyers’ replacement will be chosen in a special election.

The Detroit-area seat is strongly Democratic, so Conyers’ departure will not affect the balance of power in the House. But it does set up a potential family fight: While the congressman endorsed his son to succeed him, a great-nephew, state Sen. Ian Conyers, has publicly said he intended to seek the seat.

The announcement by John Conyers came after House Minority Leader Nancy Pelosi (D-San Francisco), fellow Congressional Black Caucus leader Rep. James Clyburn (D-S.C.) and increasing numbers of House members urged him to quit as former aides offered detailed accounts of inappropriate sexual advances he had made over decades.

A longtime civil rights activist — the only remaining member of Congresswho was elected in the 1960s — Conyers is the highest-profile political figure to be forced from office in the midst of a national debate over sexual harassment that began weeks ago with accusations against movie producer Harvey Weinstein.

Conyers has continued to deny any wrongdoing, although on Nov. 26, he agreed to step down as the top Democrat on the House Judiciary Committee in what served as the first acknowledgment of his vulnerability.

Read the entire article here.

Is it responsible government spending? GOP tax plan gives billions back to billionaires, adds trillions to the deficit

From today’s New York Times:

A Republican requirement that Congress consider the full cost of major legislation threatened to derail the party’s $1.5 trillion tax rewrite last week. So lawmakers went on the offensive to discredit the agency performing the analysis.

In 2015, Republicans changed the budget rules in Congress so that official scorekeepers would be required to analyze the potential economic impact of major legislation when determining how it would affect federal revenues.

But on Thursday, hours before they were set to vote on the largest tax cut Congress has considered in years, Senate Republicans opened an assault on that scorekeeper, the Joint Committee on Taxation, and its analysis, which showed the Senate plan would not, as lawmakers contended, pay for itself but would add $1 trillion to the federal budget deficit.

Public statements and messaging documents obtained by The New York Times show a concerted push by Republican lawmakers to discredit a nonpartisan agency they had long praised. Party leaders circulated two pages of “response points” that declared “the substance, timing and growth assumptions of J.C.T.’s ‘dynamic’ score are suspect.” Among their arguments was that the joint committee was using “consistently wrong” growth models to assess the effect the tax cuts would have on hiring, wages and investment.

The Republican response points go after revenue analyses by the committee and by the Congressional Budget Office, which scores other legislation, saying their findings “can be off to the tune of more than $1.5 trillion over ten years.”

The swift backlash helped defuse concerns about the deficit impact long enough for the bill to pass by a vote of 51 to 49. Some deficit hawks in the Senate caucus were sufficiently concerned about the report on Thursday night to delay the tax vote by a day, but the only Republican lawmaker to vote no was Senator Bob Corker of Tennessee, whose last-minute efforts to cut the size of the package or otherwise offset the deficit impact were unsuccessful.

Instead, Senate Republicans questioned the timing of the analysis’ release on Thursday, and a spokeswoman for the Senate Finance Committee released a statement saying the findings are “curious and deserve further scrutiny.”

That sentiment was repeated over and over, before and after the vote. “We think they lowballed it,” Senator John Cornyn of Texas, the majority whip, told reporters on Thursday. On Sunday, Senator Tim Scott of South Carolina said on CNN that “there’s no doubt that the J.C.T. has been consistently underestimating the activity in our economy.”

In the final hours before and after the bill passed, party leaders insisted that the tax plan would produce enough economic growth to pay for themselves with additional tax revenue from growing businesses and higher-paid workers. “I’m totally confident this is a revenue-neutral bill,” Senator Mitch McConnell of Kentucky, the majority leader, told reporters early Saturday morning after the vote. “Actually a revenue producer.”

Yet there was no data to support those claims, despite promises by the Trump administration that such an analysis would be forthcoming. The Treasury, whose secretary, Steven Mnuchin, has said repeatedly that his department was working on an analysis to show how the tax cuts would not add to the deficit, has not produced any studies that back up those claims. Last week, the Treasury’s inspector general said it was opening an inquiry into the department’s analysis of the tax plan.

The attack on the joint committee and its analysis is a change from the praise Republicans have long heaped on the body, which is staffed with economists and other career bureaucrats who analyze legislation in depth.

“The people who prepare our cost estimates are the best in the business,” Republicans on the House Budget Committee said on a page that has since been removed from their website, “and they’ve been working on this issue for years.”

The critique is the latest example of Republican lawmakers muddying the waters on empirical research in an effort to boost their policy agendas. During the debate over repealing and replacing the Affordable Care Act, lawmakers lashed out preemptively at the Congressional Budget Office over how many people would lose health insurance.

Read the entire article here.

Risky GOP tax cuts won’t trickle down, may lead to economic disaster in future

From today’s Politico News:

Republicans are on the cusp of passing the biggest corporate tax cut in American history, betting it will ignite an economic boom that creates better jobs and fatter paychecks for middle-class Americans.

That boom may never trickle down.

Some economists and corporate executives are already warning that simply lowering tax bills won’t necessarily cause companies to hire more people and pay them better. Instead, they could just wind up returning the extra cash to shareholders.

That could leave President Donald Trump and congressional Republicans celebrating a short-term legislative win that hurts them in the long run, with bigger deficits and little to show for it. And an already deeply unpopular bill — one that includes immediate hikes on some individual taxpayers — could become a serious political headache in 2020 and beyond.

“Frankly, I think they are bonkers,” David Mendels, former chief executive officer of software firm Brightcove, said of the GOP banking on a lower corporate rate to generate bigger worker paychecks. “It really doesn’t work that way. No CEO sits there and says, ‘When my tax rate goes down, I’m going to hire more people and pay them more.’”

Tax legislation cleared a key procedural hurdle in the Senate on Wednesday ahead of a formal vote as early as Thursday. House and Senate lawmakers will need to convene in coming weeks to hash out a compromise between their two bills.

Even some Republicans seem deeply unconvinced by predictions from members of the Trump administration and more aggressive budget forecasters that slashing the top corporate rate from 35 percent to 20 percent will generate enough economic growth to offset the additional $1.5 trillion in debt the Senate tax plan envisions over the next decade.

Read the entire article here.

Sexual harassment claims in Congress have been buried from public oversight

From today’s Buzzfeed by P. McLeod and L. Villa:

Michigan Rep. John Conyers, a Democrat and the longest-serving member of the House of Representatives, settled a wrongful dismissal complaint in 2015 with a former employee who alleged she was fired because she would not “succumb to [his] sexual advances.”

Documents from the complaint obtained by BuzzFeed News include four signed affidavits, three of which are notarized, from former staff members who allege that Conyers, the ranking Democrat on the powerful House Judiciary Committee, repeatedly made sexual advances to female staff that included requests for sexual favors, contacting and transporting other women with whom they believed Conyers was having affairs, caressing their hands sexually, and rubbing their legs and backs in public. Four people involved with the case verified the documents are authentic.

And the documents also reveal the secret mechanism by which Congress has kept an unknown number of sexual harassment allegations secret: A grinding, closely held process that left the alleged victim feeling, she told BuzzFeed News, that she had no option other than to stay quiet and accept a settlement offered to her.

“I was basically blackballed. There was nowhere I could go,” she said in a phone interview. BuzzFeed News is withholding the woman’s name at her request, because she said she fears retribution.

Last week the Washington Post reported that the office paid out $17 million for 264 settlements with federal employees over 20 years for various violations, including sexual harassment. The Conyers documents, however, give a glimpse into the inner workings of the Office of Compliance, which has for decades concealed episodes of sexual abuse by powerful political figures.

Read the entire article on Congressional coverups here.

House Republicans Are Trying to Pass the Most Dangerous Wall Street Deregulation Bill Ever

From Mother Jones, June 7, 2017 by Hannah Levintova:
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From the earliest days of his campaign, Donald Trump has opposed the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Obama-era financial reform law passed in response to the 2008 financial crisis.  Trump has characterized it as a “disaster” that has created obstacles for the financial sector and hurt growth. In April, he repeated his promise to gut the existing law.
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“We’re doing a major elimination of the horrendous Dodd-Frank regulations, keeping some, obviously, but getting rid of many,” Trump said in a meeting with top executives during a “Strategic and Policy CEO Discussion,” which included the leaders of major companies like Walmart and Pepsi. He added, “For the the bankers in the room, they’ll be very happy.”
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The Republican Congress shares Trump’s dislike of Dodd-Frank and this week, the House plans to vote on the Financial CHOICE Act, a Dodd-Frank overhaul bill that will, as promised, make banks and Wall Street “very happy” if it becomes law, while undoing numerous financial safeguards for regular Americans. (CHOICE is an acronym for “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.”)
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The bill, sponsored by Rep. Jeb Hensarling (R-Texas), takes aim at some of Dodd-Frank’s main achievements: It guts rules intended to protect mortgage borrowers and military veterans, and restrict predatory lenders. It also weakens the Consumer Financial Protection Bureau’s ability to oversee and enforce consumer protection laws against banks around the country—upending a mix of powers that have helped the CFPB recover nearly $12 billion for 29 million individuals since opening its doors in July 2011. The bill also weakens or outright cuts a number of bank regulations enacted through Dodd-Frank to keep risky investing behavior in check in order to avoid the economic devastation of another financial crisis or taxpayer-funded bailout.

Read the entire article here.

Behind Trump’s Climate Policy Change? Oil Lobbyists and GOP Lackeys

The data is self-evident. Conservative politicians in the GOP don’t believe the science of climate change because they take the most money from oil and energy lobbyists. Notice they hedged their bets by donating significant amounts to Hillary Clinton’s presidential campaign?

However, Clinton would almost certainly have upheld the climate accord, since she helped pave the way for an international consensus of countries to reduce their carbon emissions during her tenure as Secretary of State.

Top 20 recipients of oil and energy money from lobbyists and industry executives. This is why Trump and the GOP do not support common sense climate legislation and oppose environmental protections for American citizens and future generations.

What the Poverty Rate Tells Us About the Overall Economy

From yesterday’s NYT “The UpShot” Blog by Jared Bernstein:

On Tuesday, the Census Bureau will tell us whether the share of population that’s officially in poverty went up, down or stayed the same in 2013. There’s tons of other data in the release, like the change in the real income for the median household and information on health insurance coverage.

Because the data is a year old, financial markets ignore it. But political markets pay a lot of attention, as do policy analysts and advocates who work on poverty and middle-class economics. And, of course, these being the early days of the Affordable Care Act, the health coverage data will doubtless also get a close look. My own interest is that of the policy wonk who focuses on the nexus between the overall, or macro, economy and living standards of middle- and low-income families.

It’s an important set of numbers. Although one must always be careful not to read too much into one year’s data, 2013 represents the fourth full year of an economic recovery that officially began in the second half of 2009. Yet this recovery has been uniquely unforthcoming for the poor, the unemployed and even many people in the middle class.

Poverty, as officially measured, has held steady at about 15 percent of the population since 2010, and unfortunately, I expect it to do so again this year. I expect the real median household income to do a little better, up by maybe 1 percent.

Why, if I’m right, should the poor and middle class have gained so little by Year 4 of the recovery? That relates to the answer I tend to give when someone asks me how the economy is doing: Whose economy are you talking about?

Yes, various indicators improved in 2013. Real G.D.P. was up, but no faster than the year before (a bit above 2 percent); same with payrolls. And while the unemployment rate fell seven-tenths of a percentage point in 2013, from 8.1 percent to 7.4 percent, more than half of that was from people dropping out of the labor force. That’s not exactly a sign of strength. In fact, the share of the working-age population with a job barely budged last year.

The real wages of low-wage workers were generally as torpid in 2013. For example, if we look at the hourly wage of those in the bottom third of the pay scale, it averaged a bit above $10 per hour over both 2012 and 2013. However, a stagnant low wage is actually an improvement, because real low wages fell sharply earlier in the recovery. And the real median hourly wage went up 1 percent last year, providing a slight bump to the middle class.

Government policy didn’t help much in 2013, though the official poverty rate captures only some of the antipoverty spending by federal and state governments. For example, unemployment insurance benefits are counted, but the value of nutritional support or the earned- income tax credit (a wage subsidy for low-wage earners) is not.

Fiscal drag — fiscal policy that slows economic growth — was actually a big negative last year, taking 1.5 percentage points off economic growth by most estimates. The relevant parts of that policy for low- and middle-income households would include the ending of a tax break for wage earners (the payroll tax holiday) and less in unemployment insurance benefits.

I used statistical models that forecast the 2013 poverty rate based on the movements of the variables discussed above. Because it’s hard to make a case that the rising tide lifted too many rowboats last year, the models I run predict no statistically significant change in the poverty rate. (The rate could tick down a tenth or two, but that would be statistically indistinguishable from no change at all).

That said, there’s some chance the poverty rate will come down more than I expect. First, there’s just the momentum of a cyclical variable: Eventually the recovery sprinkles at least some of its benefits on low-income households and poverty falls a bit.

Also, there were some changes in the composition of the population last year relative to earlier years that could push the rate down. There was slower growth in immigration and a smaller share of the population in mother-only households (both groups have higher-than-average poverty rates).

Finally, inflation was low in 2013, only 1.5 percent, and that means a smaller nominal gain in income becomes a larger real gain. That’s one reason I predict that nominal median household income grew a bit faster than 2 percent last year. So it is possible they eked out a small real gain thanks in part to such minimal price growth. I expect real growth in the median household income in the 0.5 to 1 percent range.

It’s important to put these results in historical context. I expect poverty to still be 2.4 percentage points above its rate of 12.5 percent in 2007; that’s an additional 7.5 million poor. And even if I’m right about the bump in the real median income, it will still be 7.6 percent below the 2007 level, representing a loss of over $4,000.

In other words, if I’m in the ballpark, Tuesday’s release will be another reminder of why many Americans still feel pretty gloomy about the recovery: It hasn’t much reached them.

SOTU 2014 focuses on jobs, fairness

President Obama’s State of the Union Address last week highlighted a number of themes that focused on creating more opportunities for working Americans by streamlining the tax code, providing financial support for small business innovation, and making older industries like auto manufacturing and newer industries like vaccine manufacturing more competitive in the global economy.

Underlying all this was a promise to get the country back on track after it went off the rails in 2008 from a financial collapse that was precipitated by poor financial oversight, risky investment, and gross mismanagement of the nation’s financial and banking sectors. Obama claimed that the recession was making several trends worse, including growing income inequality between the wealthy and the rest of Americans. Although the President called on Congress to end its politics of obstruction and act to reform a sluggish economic recovery, he indicated that he didn’t expect much from the Republican Party, and he would move ahead without them wherever executive orders could be made on these issues in place of substantial legislation.

Here is an excerpt of Obama’s SOTU 2014 that focuses on the theme of economic recovery and fairness:

And in the coming months — (applause) — in the coming months, let’s see where else we can make progress together. Let’s make this a year of action. That’s what most Americans want, for all of us in this chamber to focus on their lives, their hopes, their aspirations. And what I believe unites the people of this nation, regardless of race or region or party, young or old, rich or poor, is the simple, profound belief in opportunity for all, the notion that if you work hard and take responsibility, you can get ahead in America. (Applause.)

Now, let’s face it: That belief has suffered some serious blows. Over more than three decades, even before the Great Recession hit, massive shifts in technology and global competition had eliminated a lot of good, middle-class jobs, and weakened the economic foundations that families depend on.

Today, after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by; let alone to get ahead. And too many still aren’t working at all.

So our job is to reverse these trends.

Read the full text and watch the video of President Obama’s SOTU speech here.

Shutdown: Complacency on Wall Street Could Be Worse Than a Panic

From the New York Times “DealBook” Blog by Jason Eissenger:

Don’t look to a market panic to save us.

We are in upside-down world, where a freak-out now would help stave off financial devastation later. By staying cool, the markets are making a crisis more likely.

Sure, the stock market has ebbed lower, but it hasn’t plunged. Short-term bond markets have hiccupped. Spreads on United States credit default swaps have widened, indicating a slighter greater fear of default, but nothing drastic. The financial media keep grasping at any movement to demonstrate investors are worried. But market participants simply don’t think that the government will end up doing something so obviously reckless and harmful as refusing to pay its debts.

Wall Street’s lack of worry reflects cynicism about Washington (who doesn’t feel that?) but also a deep misreading of how significant the ideological fissures are in the capital. Wall Street is misunderstanding the extremism of the House Tea Party Republicans who precipitated the government shutdown and debt ceiling crisis.

READ THE COMPLETE ARTICLE HERE.