Josh Harkinson

Josh Harkinson


Born in Texas and based in San Francisco, Josh covers tech, labor, drug policy, and the environment. PGP public key.

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Forty eight representatives and 11 senators earn an "F" on a new report card that ranks lawmakers based on how well they address income inequality. All of the failing grades went to Republicans.

The "Inequality Report Card," published today by the Institute for Policy Studies, looks at how lawmakers voted on dozens of bills that would, among other things, raise taxes on the wealthy, restrict the use of offshore tax havens, increase the minimum wage, and strengthen labor unions. The report gives the worst combined grade to Arkansas' congressional delegation and the best to Vermont's. Too bad Vermont Senator Bernie Sanders, a self-described socialist, isn't as exportable as Bill Clinton.

None of the senators earning an "F" grade come from the nation's five most equal states.

Lawmakers' scores on the report card correlate loosely with how much income inequality exists in their home states. California and New York rank among the highest for income inequality but employ lawmakers that earn, on average, a B- for their friendliness to the middle class. None of the senators earning an "F" grade come from the nation's five most equal states.

The report also looked at whether rich members of Congress tend to favor the 1 percent, but it seems that their votes depend more on party than pocketbook. The 10 wealthiest Democrats earned grades ranging from a "B" to "A." The best grade earned by a wealthy Republican was a C-minus.

States Aren't Enforcing Their Own Oil and Gas Rules

The biggest domestic oil and gas boom in a generation is going unpoliced by regulators in many states, according to a report released today by the environmental group Earthworks. Since 2005, the United States has increased oil production by about 10 percent and gas production about 20 percent, largely due to technological advances in horizontal drilling and fracking. Meanwhile, enforcement actions in six major oil and gas states have not kept pace with all the new drilling.

The report, "Breaking All the Rules," examined oil and gas regulation in Colorado, New Mexico, New York, Ohio, Pennsylvania, and Texas. It found that in recent years the number of oil-and-gas-related enforcement actions and total dollar amount in penalties in each state have either remained fairly constant or dropped. The only exception was in Colorado, where penalties increased because the state addressed a backlog of old cases.

One reason enforcement hasn't kept pace with drilling could be that regulators are overwhelmed. In Ohio, Colorado, New Mexico, and Texas, there are more than 2,000 wells for each oil well inspector (there are nearly 4,500 wells per inspector in New Mexico). In 2010, the report found that some states inspected only 1 in 10 oil and gas wells to determine whether they complied with state rules. Here's a chart of the percentage of oil and gas wells that went uninspected in the each state:


When inspectors in these states do discover violations of the law, their findings often don't get recorded, or don't lead to penalties, or result in penalties that are too small to deter bad behavior, according to Earthworks. For instance, an oversight commission in Texas recently found that state regulators take "relatively few enforcement actions, resulting in a lack of deterrence for future compliance." In 2011, Pennsylvania collected about $1.3 million in total penalties related to oil and gas violations—a drop in the bucket considering that a single Marcellus Shale well on average grosses $2.9 million.*

Of more than 3,300 oil spills in North Dakota since 2009, the state has issued only 45 citations.

To be sure, the Earthworks report does not offer a complete picture of the industry. Most notably, it doesn't examine oil and gas regulation in North Dakota, Alaska, or California, which are, respectively, the second-, third-, and fourth-largest oil-producing states. Those three states have better inspector-to-well ratios than the states in the Earthworks report, with North Dakota leading the pack with a ratio of 1 inspector for every 368 wells. Yet even that number has not translated into a stellar record of environmental enforcement. Despite more than 3,300 oil spills in North Dakota since 2009, the state's industrial commission has issued only 45 enforcement citations. This recent ProPublica story exposed many of the gaping holes in North Dakota's oversight of its booming Bakken oil field.

The environment is not the only victim when states fail to hold the oil and gas industry accountable. The other casualty is often the governments of those states, as we've seen in the Middle East and Africa. People in the United States still "believe that rules matter—that after the rules are created, the government will enforce them," Earthworks points out. But "in the case of state oil and gas rules, that is simply not true."

Correction: Due to errors in the embargoed version of Earthworks' report, the original version of this article stated that Pennsylvania levied about $1 million in oil and gas fines in 2010. The actual number is $4 million. It also incorrectly stated the year that Chesapeake Energy received a record environmental fine in Pennsylvania. The fine was levied in 2011.

Just how rich are the Waltons? According to the latest edition of the Forbes 400, released yesterday, the six wealthiest heirs to the Walmart empire are together worth a staggering $115 billion. This marks the first time in American history that one family has controlled a 12-figure fortune. While the nation's richest person is still Bill Gates, the sixth-, seventh-, eighth-, and ninth-richest Americans are all Waltons.

To put that in perspective, here's a chart of things the Waltons could afford to pay for:

Sources: Center on Budget Policy Priorities, CNN, Los Angeles Times, Congressional Budget Office

The Waltons' fortune might be something to celebrate if not for the fact that they've raked it in at our expense. Sasha Abramsky writes:

In 2004, a year in which Wal-Mart reported $9.1 billion in profits, the retailer's California employees collected $86 million in public assistance, according to researchers at the University of California-Berkeley. Other studies have revealed widespread use of publicly funded health care by Wal-Mart employees in numerous states. In 2004, Democratic staffers of the House education and workforce committee calculated that each 200-employee Wal-Mart store costs taxpayers an average of more than $400,000 a year, based on entitlements ranging from energy-assistance grants to Medicaid to food stamps to WIC—the federal program that provides food to low-income women with children.

The average Walmart worker earns just $8.81 an hour. At that wage, the union-backed Making Change at Walmart campaign calculates that a Walmart worker would need:

  • 7 million years to earn as much wealth as the Walton family has (presuming the worker doesn't spend anything)
  • 170,000 years to earn as much money as the Walton family receives annually in Walmart dividends
  • 1 year to earn as much money as the Walton family earns in Walmart dividends every three minutes

For more on the Walton fortune, see my 2011 chart: "6 Walmart Heirs Hold More Wealth Than 42% of Americans Combined"

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