Kevin Drum - December 2008

Hilda Solis

| Thu Dec. 18, 2008 6:44 PM EST

HILDA SOLIS....Rick Warren may have left a bad taste in the leftosphere's mouth, but we're all thrilled with his choice of Rep. Hilda Solis as Labor Secretary. Here's Jonathan Stein:

Quit yur bellyaching! Obama's pick for Secretary of Labor is reportedly California Rep. Hilda Solis, the proud daughter of a union mom and union dad. In addition to a background as a management analyst at the Office of Management and Budget and a 100 percent rating from the AFL-CIO in 2007, Solis brings a reputation as one of Washington's leading proponents of green jobs....If you were to sketch an ideal Labor Secretary, you could hardly do much better.

Solis sounds great, and her one-minute tribute to the Employee Free Choice Act (above) is terrific. If I have any cautionary note to add, though, it's this: what did you expect? Of all the senior-level appointments Obama had to make, this was the only one that was virtually assured from the beginning of being a gift to the left. And it was. So I wouldn't take this as any slam dunk indication of how seriously he's going to take labor issues.

Don't get me wrong: I'm not trying to throw cold water on Obama's choice of Solis. It's just that his overall cabinet picks have been mainstream enough that it's probably not wise to take anything big away from any one of them. Hopefully Solis will help prod Obama to appoint some good NLRB members and put some serious political capital behind the push for passage of EFCA, and that's what I'll be watching for. A labor-friendly pick for Secretary of Labor is just a start.

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Yum Yum

| Thu Dec. 18, 2008 4:36 PM EST

YUM YUM....Entertaining news from the gnomes of Zurich:

Credit Suisse Group said Thursday it will use up to $5 billion of its own illiquid assets such as mortgage securities to pay senior staff year-end bonuses at its investment bank, a move meant to spread risk more evenly between the bank and its employees.

The Zurich-based bank plans to pool commercial mortgage-backed securities and leveraged loans it can't sell because demand has seized up, then dole out units in the entity to managing directors and directors as part of this year's pay, according to a memo made available by a spokesman.

There's certainly an appeal to this, isn't there? Eating their own dog food, so to speak. Or their own toxic waste, as the case may be. I wonder if this idea will spread to Wall Street?

Bailout Update

| Thu Dec. 18, 2008 3:57 PM EST

BAILOUT UPDATE....The latest on the auto front:

The White House said on Thursday that an "orderly" bankruptcy was one option being considered to try to rescue General Motors and Chrysler, which are seeking billions of dollars to avoid a shutdown.

....Under one possibility that has been discussed, the government would give G.M. and Chrysler enough financing to operate for several months. Then a government-selected overseer would bring together company executives and other representatives to map out steps that would be taken once the two companies file for Chapter 11 protection.

This is the "prepackaged bankruptcy" option that's been mooted a few times before. It actually sounds like a decent compromise to me: it keeps the companies from imploding in the middle of a huge recession, but at the same time it gives a bankruptcy court considerable leeway to impose serious restructuring of the kind that a political process probably can't. The end result — if it's done right — is a pair of companies that will end up smaller but still viable in the long term, and an economy that takes only a moderate hit instead of a killing blow. Call me tentatively in favor of this approach.

My Dysfunctional State

| Thu Dec. 18, 2008 3:36 PM EST

MY DYSFUNCTIONAL STATE....After reading last night's post about the bizarre lengths California Democrats have to go through just to pass a budget, Matt Yglesias says:

Not to tell the good people of California how to run their business, but from reading stuff like this it's clearer and clearer that the state desperately needs a new constitution. You never meet anyoen who thinks the institutions of governance in California are well-designed, or even who denies that the existing institutional configuration makes it impossible to solve any of the state's problems. But nobody quite seems to want to do anything about it. And yet surely it can't be impossible to change this stuff — state constitutions used to be re-written all the time.

Well, no, it's not impossible or anything. But here's the thing. Talk of calling a constitutional convention has been banging around California for at least the last few decades — maybe since 1851, for all I know — and it's gotten a lot louder recently. Here, however, is the rule for calling a convention:

The Legislature by rollcall vote entered in the journal, two-thirds of the membership of each house concurring, may submit at a general election the question whether to call a convention to revise the Constitution. If the majority vote yes on that question, within 6 months the Legislature shall provide for the convention. Delegates to a constitutional convention shall be voters elected from districts as nearly equal in population as may be practicable.

In plain English: you need a two-thirds vote of the legislature to put an initiative on the ballot and then you have to get it approved by the voters. The problem is that no matter how sweetly liberals might croon about what a convention could do, conservatives all know the truth: the whole point of the thing would be to get rid of our insane two-thirds requirements for passing budgets and raising taxes. Unfortunately, our whole problem is that Republicans control (slightly more than) one-third of the legislature. And if we can't get them to vote for a tax increase in the first place, what are the odds we could get them to vote for a constitutional convention called for the express purpose of making it easier to increase taxes? About zero.

OK, but how about a simple initiative? We could get rid of the two-thirds rule just by collecting signatures and getting a majority vote, right?

Right. And we tried that just a few years ago. Prop 56 was supported by all the usual good government groups and would have reduced the majority needed to pass budget and tax measure from two-thirds to 55%. A bunch of other fluff was added to make it more popular ("rainy day" funds, no pay for legislators if they don't pass a budget, etc.), and in the end.....

....it got whomped 66%-34%. No one was fooled for a second. Everyone knew the whole point was to make it easier to raise taxes, and so it lost in a landslide.

So what to do? It's true that our legislature is dysfunctional. As George Skelton put it today, "Modern-era Republicans adamantly refuse to vote for any tax increase. They took a campaign pledge not to and seem to regard it as some cult-like blood oath." That's true. The solution is a little less obvious. Unfortunately, our electorate is dysfunctional too.

Pay Cuts are Coming

| Thu Dec. 18, 2008 2:22 PM EST

PAY CUTS ARE COMING....Felix Salmon, after noting that FedEx has announced across-the-board pay cuts for just about everyone:

There's been a huge shift in power in recent years from labor to capital: corporate profits have been rising much faster than wages for some time now. It makes sense that capital would make use of its newfound power to reduce labor costs in a deflationary environment of rising unemployment. During the boom, companies laid off workers because those workers demanded, and cost, too much money. Now that workers have lost their negotiating leverage, we might start seeing more across-the-board pay cuts.

Heads I win, tails you lose! In boom times you get laid off, in slack times you get your pay cut. That's certainly one way to run an economy, I guess.

Eat Your Almonds

| Thu Dec. 18, 2008 2:08 PM EST

EAT YOUR ALMONDS....A new blog called On the Public Record is written by a "low level civil servant who reads a lot of government reports." My kind of blogger! Today, LLCS brings to our attention the California Almond Board:

The good prices for almonds are the result of excellent work by the California Almond Board. The Almond Board has done magic and created demand for more than a billion pounds of California almonds in the past fifteen years. They have run marketing campaigns to get Americans to buy more almonds ("A can a day, that's all we ask." Do any of you really want a can of almonds a day?). They have created new almond drinks. They've introduced almonds into breakfast cereals. (Think back to the mid-nineties. Don't you remember that breakfast cereals rarely had almonds in them?) California almonds have replaced and destroyed every other major source of almonds in the world. Right now on the Almond Board front page, they report happily that almonds are the number one nut ingredient in food.

This really is superior work by the Almond Board and I can only imagine that the walnut and cashew boards look on in envy.

Later, after a persual of their website:

They're doing amazingly consistent high quality work and I wonder how that came about. Did they just happen to hire someone good, who built a good organization? Did that person love almonds or just doing good work? Coincidence that it was the Almond Board and not the Walnut Board or Citrus Board? Does everyone talk about almonds as the shining light of California agriculture because of some quirk of hiring and personality? Anyway, I don't know what almond growers pay for the board (I assume some small percent of their price/piece), but they're getting stellar value for it.

It sure seems to me that mixed nuts have a higher percentage of almonds (pronounced aamins, by the way, rhymes with famines) than they used to. Or is that my imagination? In any case, maybe the tofu folks need to hire away the guru behind the Almond Board's success. It would make Ezra Klein happy, anyway.

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Keeping Power in Iraq

| Thu Dec. 18, 2008 12:47 PM EST

KEEPING POWER IN IRAQ....Matt Yglesias comments on the news that "elite" forces working for Iraqi prime minister Nouri al-Maliki have arrested several dozen officials in the Ministry of the Interior:

Maybe I'm just cynical, but this "elite counterterrorism force" sounds to me like a security organization whose primary purpose has more to do with bolstering Maliki vis-à-vis internal enemies than with counterterrorism as such. Not that I blame him, all kinds of other factions have their own armed wings and no loyalty to Maliki or the Iraqi state, so to stay in office he'll need friends with guns of his own.

That's a coincidence, isn't it? That's pretty much what it sounded like to me too. And who knows? Maybe these Interior officials really were trying to reconstitute the Baath Party. Seems pretty stupid to me, but stranger things have happened. The big question is, does "Baath Party" in this context really mean "Baath Party," or does it just mean "Sunni guys I don't like much"? Juan Cole is wondering too:

This cover story makes no sense, and it seems more likely that al-Maliki is continuing to clean house and is purging Interior of people placed there by previous governments or by the US CIA and Department of Defense. The Interior Ministry was set up by Naqib al-Falah, an ex-Baathist Sunni whose father had been a Baathist general who defected in the 1970s.

....When the Shiite United Iraqi Alliance won the 2005 elections, PM Ibrahim Jaafari gave interior to Bayan Jabr, a Turkmen member of the pro-Iran Supreme Council for Islamic Revolution in Iraq. Jabr reconfigured the special police commandos as a hard line Shiite unit. But neither Jaafari nor al-Maliki has had complete control of the bureaucracy, and many of Falah's ex-Baathists, whether Sunni or Shiite, managed to hold on to their jobs. Until now. Anyway, that is my guess.

Otherwise, it is not plausible at this late date that 28 people in Interior could make a neo-Baath coup.

Agreed. If this was a coup attempt, it was a pretty half-assed effort.

Desperation Time in Sacramento

| Thu Dec. 18, 2008 2:51 AM EST

DESPERATION TIME IN SACRAMENTO....California is $40 billion in the hole, give or take a billion or ten, and the only way out is to raise taxes and cut spending. But it takes a two-thirds vote to pass a budget or raise taxes in California, and California Republicans flatly refuse to raise taxes in any way, shape, or form. Result: deadlock.

Today, though, Democrats in Sacramento came up with a plan. It turns out that revenue-neutral tax changes only require a majority vote. And user fees only require a majority vote too. So Dems have proposed a two-step tap dance. First, raise a bunch of taxes and eliminate a bunch of fees in a revenue neutral way. Pass it with a majority vote. Then put all the fees back in place under a different name and kick them up a notch. Pass that with a majority vote too. Voila! A tax increase with only a majority vote. Toss in $7 billion in spending cuts (schools, healthcare, etc. — the usual) and we're halfway down the road to fiscal solvency!

It's clever, I'll give them that. And there's nothing to keep them from doing it over and over again, thus raising taxes whenever they want to with only a majority vote. Because of that, and regardless of whatever supporting opinion they managed to wrench from the Legislative Counsel's office, this is so plainly contrary to the spirit of the state constitution that I have a hard time seeing how it will pass judicial muster. But I guess it's worth a try. Any port in a storm.

Equal Protection

| Thu Dec. 18, 2008 2:13 AM EST

EQUAL PROTECTION....Is Norm Coleman really trying to prevent ballots in the Minnesota senate race from being counted by using Bush v. Gore as precedent for an Equal Protection Clause claim? The same Bush v. Gore decision that was so contrary to previous conservative opinion that the court specifically (and to considerable mockery) stated that "Our consideration is limited to the present circumstances"?

Why yes. Yes he is. The mind reels.

The Art of Being George

| Wed Dec. 17, 2008 5:10 PM EST

THE ART OF BEING GEORGE....In a package called "Art and Culture In the Bush Era," Newsweek asked its cultural critics to pick the "one work in their field that they believe exemplifies what it was like to be alive in the age of George W. Bush." Let's argue over some of their choices, OK?

First off, there are the two TV critics, who practically bent over backward to avoid naming 24. I'm not saying that Battlestar Galactica and American Idol are bad choices, mind you, and I know that maybe it seems a little too obvious for guys who are paid to think nonobvious thoughts about this stuff, but come on: 24 is George Bush's America. Case closed.

Art critic Peter Plagens chose Jeff Koons's "Hanging Heart," but he's wrong. The only possible choice is everything ever manufactured by Damien Hirst, who has made a career out of convincing people to give him fantastic sums of money for stuff that everyone knows is obvious crap — and then lying about it on the occasions when people don't. Read this, for example, and tell me if it doesn't scream "George Bush":

There was the summer of 2007 when thousands of people lined up outside White Cube waiting to glimpse a human skull cast in platinum and covered with 8,601 diamonds that he claimed to have sold at its $100 million asking price. When he was pressed, however, it turned out that the buyer was actually a consortium of investors that included the artist himself; Jay Jopling, owner of White Cube; and Frank Dunphy, Hirst's business manager.

Music critic Lorraine Ali chooses Green Day's "American Idiot." Wrong again. The correct answer is a tie between the insane protest over Dixie Chick Natalie Maines saying "we're ashamed the President of the United States is from Texas" and Toby Keith's "Courtesy of the Red White and Blue." Yes, yes, I realize that Natalie Maines's comment is not technically an actual work of art, but we shouldn't let that stand in the way of a higher truth.

The book critics chose The Corrections and Rick Warren's The Purpose Driven Life. Wrong and wrong. In the fiction category, the iconic book of the Bush era is clearly The Pet Goat. Right? The nonfiction category is a little tougher, but I think Jane Mayer's The Dark Side deserves the nod for the book that best represents what Bush and Cheney were really all about. A close second, perhaps, goes to Glassman and Hassett's Dow 36,000, which represents Bush and Cheney's own personal fantasy of what they were all about. Yes, it was written in 1999, but remember that we're going for higher truths here.

The movie critics chose Blackhawk Down and Borat. I guess those choices are OK. But instead, how about the second Star Wars trilogy, another painful reminder that sequels are usually a disappointment?

UPDATE: In comments, PureGuesswork makes a strong case in the music category for Britney Spears: "She spent the last eight years coming up with new ways to fuck up, and now she is worried about her legacy."

UPDATE 2: In the movie category, lots of votes for Idiocracy. Hard to argue with that.