Stephanie Mencimer

Stephanie Mencimer

Reporter

Stephanie works in Mother Jones' Washington bureau. A Utah native and graduate of a crappy public university not worth mentioning, she has spent the last year hanging out with angry white people who occasionally don tricorne hats and come to lunch meetings heavily armed.

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Stephanie covers legal affairs and domestic policy in Mother Jones' Washington bureau. She is the author of Blocking the Courthouse Door: How the Republican Party and Its Corporate Allies Are Taking Away Your Right to Sue. A contributing editor of the Washington Monthly, a former investigative reporter at the Washington Post, and a senior writer at the Washington City Paper, she was nominated for a National Magazine Award in 2004 for a Washington Monthly article about myths surrounding the medical malpractice system. In 2000, she won the Harry Chapin Media award for reporting on poverty and hunger, and her 2010 story in Mother Jones of the collapse of the welfare system in Georgia and elsewhere won a Casey Medal for Meritorious Journalism.

CEO's Who Can't Manage Their Companies' Retirement Plans Want to "Fix" Social Security

| Tue Nov. 27, 2012 8:42 AM PST
Fix the Debt campaignMembers of the Fix the Debt coalition ring the bell at the New York Stock Exchange

Corporate chief executives who get involved in politics often invoke their business bona fides as a superior guide to fixing the nation's problems. The CEO's behind the latest "Fix the Debt" campaign are no exception. The top dogs at more than 90 American corporations—ranging from Honeywell's David Cote to Loews' James Tisch— have signed on to the coalition to press Congress to rein in federal spending, particularly on entitlements, and to balance the nation's books. The anti-debt coalition would like to see big cuts in Social Security benefits and an increase in the retirement age as a "fix" for the program.

Of course, American political leaders should always take the advice of rich businessmen with a grain of salt (and here they are almost uniformly men), especially when the remedy also includes big corporate tax cuts, as the "Fix the Debt" coalition is advocating for. But also, in this case, it's fairly clear that there's nothing about being a CEO that makes one especially well-equipped to dictate massive changes to the nation's collective retirement plan. Indeed, the CEO's behind the "Fix the Debt" coalition come from companies with rather dismal records of managing their own retirement plans.

Consider this: According to a new report from the Institute of Policy Studies, the 71 publicly held firms in the coalition have "a combined deficit of more than $100 billion in their employee pension funds." As with Social Security, these companies' retirement plans don't have enough money in them to pay out the promised benefits to the company workers. That's not because the companies don't (or didn't) have the cash. On the contrary.

One of the largest companies participating in the "Fix the Debt" campaign is GE, which in the 1980s had a $24 billion pension fund surplus. But GE and other big companies like it found ways to siphon money out of the fund to use for other things, like restructuring deals. GE also failed to contribute any money to the fund for 24 years. By 2009, GE's pension fund had a $22 billion deficit. Rather than draw on some of its cash reserves—some $85 billion currently on hand—GE last year decided to simply close the fund to new participants, forcing them into the sub-par 401(K) system.

Meanwhile, GE's CEO, Jeffery Immelt, hasn't skimped on his own retirement funds. He has a pension worth more than $47 million, plus another $5.3 million in deferred compensation coming his way, a nest egg that would translate into a monthly pension payment of about $292,000 for the rest of his retired life, according to IPS. By way of comparison, the average monthly Social Security check is $1,237.

IPS also includes in its report some staggering statistics about the state of the private sector's retirement planning that suggest some of these companies' retirement policies are one reason American workers are so reliant on the very safety net that the "Fix the Debt"ers want to slash. Here are a few:

  • Percentage of Fortune 100 firms offering traditional pensions to employees in 1980: 89
  • Percentage of Fortune 100 firms offering traditional pension for employees in 2012: 11
  • Percentage of Fortune 100 firms operating such plans for CEO and other executives: 79
  • Percentage of private sector workers having traditional pension at work in 1980: 83%
  • Percentage of private sector workers having traditional pension at work in 2011: 15%
  • Percentage of current full-time American workers in their 50s that have neither 401(K) nor traditional retirement plan at work: 44%
  • Percentage of Americans with no retirement assets of any kind: 34%
  • Estimated amount of retirement savings necessary (beyond Social Security) to provide $25,000 in annual income during retirement years: $500,000

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"Did Jesus Die for Klingons, Too?" and Other Pentagon Projects

| Tue Nov. 20, 2012 12:07 PM PST
klingon cosplay

Oklahoma Senator Tom Coburn (R) is the rare Republican these days who is willing to argue that cutting defense spending is not only feasible, but important. To that end, he recently published a report identifying nearly $70 billion in wasteful spending from the defense budget. Many of the items make his GOP colleagues who believe the defense budget is sacrosanct and untouchable look incredibly foolish. A quick run-down:

  • The 100-Year Starship Project: The Defense Advanced Research Projects Agency has spent more than $1 million to "foster a rebirth of wonder" and to make space travel to other solar systems feasible in the next century. To that end, the agency paid $100,000 to sponsor a strategy workshop in September featuring a session called "Did Jesus die for Klingons, too?" on the theological threat to Christianity that the discovery of life on other planets might pose. A related conference devoted to the future of space travel included a workshop on "what intersteller explorers might wear." (Hint: Not polos and khakis.) The event featured an "intergalatic gala" for which attendees were asked to come in "starship cocktail attire."
  • Caffeine Zone 2: The Office of Naval Research supplied funds to Penn State University researchers who developed a smart phone app designed to "help people manage their caffeine consumption to suit their lifestyles." Coburn notes that two such phone apps already exist without the help of military financing.
  • Beef Jerky Roll-ups: The Defense Department invested $1.5 million to develop a new twist on beef jerky. The savory snack is designed to be more like a "fruit roll-up" than a Slim Jim, and to double as a sandwich filling if necessary. Coburn notes that the private beef jerky market has no shortage of products that the department might use, and that the jerky industry is thriving without the help of taxpayer dollars.
  • "Does this caulk gun make me look taller?": The US Air Force paid $680,000 to fund research on whether men were perceived as taller when they were holding a pistol than if they were simply wielding a caulk gun, paint brush or a power drill. Answer: Yes.
  • The Search for Extraterrestrial Life Institute: Remember those old screen savers from SETI that supposedly tracked the search for life in outer space? Based in Berkeley (of course), SETI amassed a huge array of telescopes that scanned the skies for "electromagnetic signals that could hint at the presence of an intelligent alien civilization." In 2011, SETI went dark for lack of, well, finding anything interesting and lack of funding. Thank heavens the Air Force stepped in! According to Coburn, the Air Force saved SETI from extinction with a $2 million infusion of funds to see if the SETI telescopes might supplement the country's existing search for aliens.

Coburn's report, called "Department of Everything," is useful in poking holes in Republican arguments that the Defense Department should be spared a single dollar of cuts lest national security collapse entirely. But it's also sort of a sad testament to the way the nation's budgeting process has gone wildly awry. All sorts of domestic needs that are starved for funding—everything from medical research (Coburn finds DoD funding breast and prostate cancer research) to alternative energy development to paleoentology—have found their way into the defense budget because that's the only place Congress is willing to spend money these days.

Obama 1, Catholic Bishops 0

| Wed Nov. 7, 2012 4:13 PM PST
New York Cardinal Timothy Dolan

For the past two years, the US Conference of Catholic Bishops has been on the warpath against the Obama administration. The bishops have lashed out at the White House for requiring employers to give workers with insurance health plans that provides free contraception. (Catholic institutions including Notre Dame have filed suit against the mandate.) The bishops have also fumed over the Department of Health and Human Services' decision not to renew its contract with the USCCB to provide services to the victims of human trafficking. The bishops had refused to allow its subcontractors to provide abortion or contraception counseling or referrals, even when it was clear that many of the victims they served really needed those services.

These fights prompted the bishops to mobilize during the presidential campaign. They staged a two-week "religious freedom" campaign over the summer that was only a thinly veiled attack on Obama. Throughout the election season, priests across the country were heard urging their congregations to vote against Obama.

Despite all the protests and occasional polls suggesting that Catholics would vote against Obama by a 3 to 1 margin, American Catholics ended up supporting Obama over Mitt Romney by two percent, according to exit polls analyzed by the nonprofit Faith in Public Life. Obama did see a drop in his share of Catholic supporters, but mostly among those who also fall into the "white male" category that represented Romney's strongest base.

"A diverse coalition of social justice Catholics, especially Latinos, helped tip the scales this year," said John Gehring, Catholic program director at Faith in Public Life in a release. "While bishops doubled down against same sex marriage and demonized President Obama as an enemy of religious liberty, they were clearly out of touch with many Catholics. If the GOP has some reflecting to do about its inability to reach an increasingly multicultural country, Catholic leaders could benefit from similar soul searching when it comes to their own diverse flock."

Mia Love, a GOP Rising Star, Falls Short

| Wed Nov. 7, 2012 9:18 AM PST
Mia Love loses race.Mia Love speaks at the 2012 Republican National Convention in Tampa, Florida.

Utah Republicans must be apoplectic today. Despite gerrymandering his district for the second time in a decade, despite the presence of a Mormon GOP presidential candidate on the ballot, and even after spending a combined $5 million, the GOP has once again failed to rid the state of its last remaining congressional Democrat, Rep. Jim Matheson.

This year, the Republicans took their best shot yet at Matheson, who has survived a host of close races in his career. In this election cycle, Matheson faced a surprisingly strong candidate, Mia Love, the Haitian-American, Mormon, tea party conservative mayor of Saratoga Springs. Starting out as a virtual unknown, the telegenic part-time fitness instructor and former flight attendant landed a major speaking slot at the Republican convention in Tampa and became a national media darling. The party's biggest names stumped for Love in Utah, bringing her from a double-digit polling deficit in the spring to a five-point lead right before the election. The race shattered state spending records, and at $10 million, became the most expensive House race in state history. But in the end, even robocalls from Mitt Romney weren't enough to push Love into the winner's circle.

There had been much fear among Democrats that Utah voters would simply vote a straight GOP ticket thanks to Romney's presence at the top. But at least in the 4th District, where Matheson was running, that simply wasn't the case. The results of the election seemed to prove that Matheson knew what he was talking about when he told me this summer that Utahans are not the straight-ticket Republican voters they're often made out to be. He said his constituents really are true independent voters who vote the person, not the party.

Love's tea party policy views may have been too extreme even for one of the nation's reddest states (she even supported ending the federal school lunch program), though it's almost certain that she suffered from her campaign's disorganization. Despite reinforcements from Washington, Love's campaign was plagued with logistical problems (she stood up Romney when she was supposed to introduce him at the NAACP convention), staff turnover and embarrassing media episodes. After Mother Jones raised questions about the story she'd been telling about her family's immigration history, Love's campaign tried to deflect some of the fallout by releasing an internal poll claiming she had taken a 13-point lead in the race.

Love's campaign seemed unable to manage even the basic paperwork required to rent a table at a Utah teachers' convention this fall, a mishap that left her wandering the exhibit hall handing out flyers in violation of the rules. Making the jump from mayor of a town of 18,000 (where Love was elected with a mere 800 or so votes) to member of Congress representing more than 700,000 people in a brand-new district, required a well-coordinated ground game, and that's probably where Matheson outhustled Love. Matheson prevailed by only about 2800 votes, according to the still-unofficial count. But Utah's Democrats, who have been very lukewarm on Matheson because of his conservatism, seem to have rallied to save their voice in Congress. Reports the Deseret News:

Utah Democratic Party chairman Jim Dabakis said his party saw the Romney tsunami coming.

"We worked harder. We knocked on more doors. We organized as we've never done before, and I think it made a difference," he said, citing the work of the newly formed LDS Democrats and other groups for Matheson's win.

Matheson has been criticized by some in his party for being a "Democrat in name only," because of his vote against Obamacare and other key liberal legislation, and they've suggested that it wouldn't matter much for the state whether he was reelected or not. But while Matheson has been a solid Blue Dog Democrat, the differences between him and Love were stark, especially when it came to the environment. Matheson, who was once a lobbyist for a DC environmental group, has been an strong voice in the House for protecting Utah's wilderness and watershed areas. Love campaigned on a platform calling for turning Utah's federal park lands over to the state, which would potentially open them up for mining and drilling.

Despite her loss, Love will probably not disappear from the political scene. She's still mayor of Saratoga Springs, of course. And like Sarah Palin, she clearly has a future as a Fox News analyst. But also, the Romney campaign and the national GOP relied heavily on Love during this year's campaign season to dispel criticism that theirs is a party of old white men. Even if Republicans can't take another shot at redistricting Matheson for another eight or nine years, they can prep Love for a rematch in 2014, and after her embarrassing defeat this week, she will probably be spoiling for a fight.

"Do Not Use the Green Line" Guy Loses DC Delegate Race

| Tue Nov. 6, 2012 8:12 PM PST
Bruce MajorsBruce Majors, candidate for DC Delegate to US House

We probably don't need an exit poll to say with some confidence that DC real estate agent Bruce Majors has lost his race against incumbent Eleanor Holmes Norton for the ever-so-powerful job of DC Delegate to the US House of Representatives. Majors is best known for his 15 minutes of fame two years ago when he wrote a guide advising people visiting DC for a Glenn Beck rally to stay away from subway lines that serve predominantly poor black areas. That earned the scorn of everyone from Rachel Maddow to Washington Post columnist Eugene Robinson, who said he thought Majors was "scaring white people." He was an unlikely challenger for Norton's job. A tea partier, libertarian, professional Internet troll, and gay rights advocate who has given thousands of dollars to Democrats in years past, Majors has been a fixture in local city politics for a couple of decades.

He ran against Norton mostly with his own money, and didn't ever have much of a shot of winning. But he seems to have an ulterior motive for his campaign: securing a permanent slot on the DC ballot for the Libertarian Party. It's a laudable goal. When it comes to local politics, DC is a one-party town. Virtually every city office is held by a Democrat or a Democrat pretending to be an independent to win a seat on the city council, where the law requires two seats to be held by people of a different party. If Majors wins 7,500 votes from the city's libertarian/Republican/Ron Paul voting block, the Libertarians won't have to spend a small fortune every two years to get on the ballot, and DC voters might have another choice, even in races as meaningless as the DC delegate race.

The DC delegate election is one of the more depressing features of voting as a DC resident. Those of us who live in the nation's capital suffer from taxation without representation in the US Congress. Voting for Norton is just a reminder of that second-class status. The 22-year incumbent gets to attend congressional hearings and hang out with real members, but she doesn't actually get to vote on anything outside of committees. Yet every two years, she raises hundreds of thousands of dollars, mounts a campaign, a fringe candidate makes a stab at running against her, and we pretend it's a real exercise in democracy.

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