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This guest post is by Natasha Chart of Campaign for America's Future.  The post first appeared at the Blog For OurFuture.

Thanks to $24 million in stimulus funding, Solar Power, Inc., a company that manufactures solar panels in China to install in the US is exploring opening a solar panel manufacturing plant in Sacramento, CA, to go along with a 10 megawatt solar power installation in the area.

There are no timelines for the projects, but Solar Power chairman and CEO, Steve Kircher seems optimistic. In a press release, he said, "Expanding our manufacturing base to California will significantly enhance our ability to meet growing demand for our solar system development expertise and our top-ranked solar panels across the U.S."

While it's great to get results like this from the stimulus, passing a clean energy bill at the federal level, for all the inherent problems, would create a lot more of the same. I expect that in the long run, the expansion of investments in clean energy will be more useful for reducing carbon emissions than many other, more direct attempts to regulate carbon. The reason I think that is because it will begin creating positive incentives that tie people's livelihoods to the clean energy economy, which is a much-needed shift in the political dynamic that will ease the way towards necessary future reforms.

As David Roberts continues to point out so lucidly, shifting behavior and understanding incentives is probably the most important task of building a clean energy economy.

Fortunately, Rep. Ed Markey (D-MA), chairman of the Select Committee on Energy Independence and Global Warming, seems to be of a roughly overlapping opinion about the importance of the job incentive:

... Similarly, in the energy sector we need to retool the existing generation and distribution networks with cleaner forms of generation, open markets to innovators who will build power lines that lose fewer electrons and connect new sources of clean power to users, and reward investors for installing more efficient ways of using electricity. Creating the right framework for our communications networks led investors to commit about $850 billion to rebuild those networks. With the right set of policies, it is reasonable expect a similar explosion of private sector investment in the energy sector. This will result in consumers paying less for heating, cooling and lighting, and America's energy sector will be firmly based on abundant, cheap and clean fuels. Nothing will pull innovation into the energy sector more than wind farms demanding better storage technology, solar farms demanding better ways of capturing and converting sunlight into electricity, and appliances and electric vehicles that can talk to the grid if it is smart enough.

There are other areas of the economy where Americans can and should find new jobs. In the energy sector we not only will need millions of employees, but we also know that those millions will help us achieve independence from foreign oil and an end to the pollution of the environment from carbon emissions. The trifecta of huge employment, national security, and protection of the environment is a winning ticket for America. ...

And by "America", Markey thankfully seems to mean all the Americans who need jobs, and a lot more jobs, quickly, because young and older, most people have to work for a living and don't care how the stock market is doing.

So, more like this, please.


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This appeared first at Open Left, but I wonder if it applies to California as well? Is it already too late for California?  Have the conservatives done so much damage that the state is just bankrupt and ungovernable?

When you sell the farm, the farm's gone.

Is it already too late for America?  I'm starting to think that the anti-tax, anti-government conservative movement that started in the mid-70s, elected Reagan and led to the terrible Bush Presidency may have effectively destroyed the country, leaving it bankrupt, corrupt,ungovernable, ruled by a wealthy elite -- and we're only now just starting to realize it.   To cover tax cuts we stopped maintaining the infrastructure and started borrowing.  To satisfy their  hatred of government we increasingly stripped away rule of law, regulation, and belief in one-person-one-vote.  We are seeing the consequences of all of that coming back to roost now.

Reagan left us with massive debt and ever-increasing interest payments. Bush left us with $1.3 trillion deficits and a destroyed economy that would force further increases in the borrowing for years - to be blamed on Obama.  The "free marketers" gave away our manufacturing base that will take decades and massive capital investment to recover.  Obama can try, but it may just be too late to do anything about the borrowing.  We need massive investment in jobs and infrastructure, and a national economic/industrial plan.  But, with their own Reagan/Bush debt as ammunition, conservative ideologues continue to block every effort at investment to get out of the mess we are in.

The conservatives destroyed the regulatory structure of the government.  They removed the inspectors, administrators, regulators and replaced them with corrupt cronies.

The conservatives killed off, contracted out or sold off - "privatized" - so much of our in-common resources and heritage of public structures.  Water systems, oil and mineral leases, government functions, elements of the military, etc.

The conservatives destroyed the rule of law, leaving behind public perception of rule by cronyism, favoritism and mob.

The conservatives destroyed public understanding of democracy, leaving behind a one-dollar-one-vote system that their Supreme Court just formalized, along with a corporate media that works to keep people uninformed.  And to make matters worse, now the telecoms can argue before Federalist Society judges that their "speech rights" are violated by rules making them carry labor and progressive websites over the internet lines they control.  And forget about the idea of them ever letting anti-corporate-rule candidates raise money on "their" internet.

I hate to reference Friedman but this from last week has been sticking in my mind.  He says the world is looking at the mess in the US and is turning away from democracy as a result.

[Foreigners] look at America and see a president elected by a solid majority, coming into office riding a wave of optimism, controlling both the House and the Senate. Yet, a year later, he can't win passage of his top legislative priority: health care.

"Our two-party political system is broken just when everything needs major repair, not minor repair," said ... who is attending the forum. "I am talking about health care, infrastructure, education, energy. We are the ones who need a Marshall Plan now."

Indeed, speaking of phrases I've never heard here before, another goes like this: "Is the 'Beijing Consensus' replacing the 'Washington Consensus?' " Washington Consensus is a term coined after the cold war for the free-market, pro-trade and globalization policies promoted by America. ... developing countries everywhere are looking "for a recipe for faster growth and greater stability than that offered by the now tattered 'Washington Consensus' of open markets, floating currencies and free elections." And as they do, "there is growing talk about a 'Beijing Consensus.' "

The Beijing Consensus, ... is a "Confucian-Communist-Capitalist" hybrid under the umbrella of a one-party state, with a lot of government guidance, strictly controlled capital markets and an authoritarian decision-making process that is capable of making tough choices and long-term investments, without having to heed daily public polls.


It is too late to recover?  

Accountability is a first step.  If the current administration would hold the corrupt actors accountable, maybe we could begin to restore governance.  And the public would know who to blame for what has happened to us, enabling them to support policies that will get us out of this.  But so far they won't.  If they won't even investigate torture and illegally invading a country why should we expect any accountability for the financial collapse, corrupt government contracts, bribery, embezzlement, corruption and other crimes of the Bush era?

More equitable distribution of the fruits of our economy is another step.  Our system worked so much better back when the top tax rate was 90%.  The returns from our investment in infrastructure were more widely shared.  And back when it took many years to build a fortune businesses had an interdependence with their communities.  Executives needed the schools and roads and other public structures functioning well. They needed long-range business and community planning.  But just imagine trying to do something about the concentration of wealth today.

So where do we go from here.  Is democracy over?  Is rule of law a thing of the past?  Is predatory monopoly control by the largest corporations the way things are and will be?  Does the world now move to governance by a wealthy elite?

Or is the winter and the rain and the snow just getting to me?

What are your thoughts?


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Voters in Oregon passed tax increases on corporations and the wealthy.  This was in spite of well-funded corporate campaigns against the measures.

Measure 66 raises tax rates on individuals who earn more than $125,000 and couples with incomes greater than $250,000. Measure 67 increases business taxes. Fifty-four percent of voters had approved both measures with more than 80 percent of the vote counted late Tuesday.

At Calitics Robert Cruichshank writes, Oregon Voters Deliver Game-Changing Victory,

The opposition ran a well-funded campaign, led by Nike, Columbia Sportswear, and other big businesses. They were joined by Ari Fleischer's FreedomWorks and the libertarian publisher of the Oregonian, who used to be at the Orange County Register before it went belly-up. Together they ran a campaign arguing that the tax increases would worsen unemployment. But 55% of voters have rejected that, and instead showed that when a truly progressive campaign is waged, the right-wingers can be beaten. Even on taxes.

... Their message was deeply progressive:
These reforms protect nearly $1 billion in vital services like education, health care and public safety. These funds preserve class sizes, save jobs for teachers, provide seniors with in-home care, and provide health care for thousands of Oregonians through the Oregon Health Plan. In this time of economic crisis, we must protect those who have been hit the hardest - seniors, children and the unemployed - without putting more of a burden on the middle class.


It's a message that works nationally. And it's a message that'll work here in California. Voters don't like seeing their neighborhood schools close, or mass layoffs of teachers, or ending care for the disabled, or kicking kids off of health care. They don't want it, and are willing to raise taxes to prevent it.

The important lesson to learn is that the public wants government: good schools and roads and courts and police and fire protection.  And the public understands that building solid public structures is the key investment in future prosperity.

California leaders can now feel free to lead and understand that the public is behind them if they raise taxes on the wealthy and corporations in order to find needed state government programs.

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Lessons From Massachusetts

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The Republican candidate won the special election in Massachusetts to replace Senator Kennedy, giving them 41 votes.  The Republicans have filibustered every single bill this year, and this clinches their ability to block the President's agenda.  If this sounds familiar to Californians, it's because in California the Republican minority is able to block budgets, and we have seen the results.

There are lots of sophisticated explanations for the election's outcome, mostly involving people being upset at particulars of the health care bill.  But I don't really think that the people who voted for the Repubican candidate were all that well informed about differences between the House and Senate versions of the bill, the "public option," or other intricacies of in-progress legislation.  

Instead, when looking for the reasons people voted this way, I think we should take the Republican candidate's word for it.  On his website he says it is for the following reasons:

At his September 12 announcement of candidacy for the U.S. Senate, Senator Brown articulated a core set of beliefs that guide his thinking.
  • Government is too big and that the federal stimulus bill made government bigger instead of creating jobs
  • Taxes are too high and are going higher if Congress continues with its out-of-control spending
  • The historic amount of debt we are passing on to our children and grandchildren is immoral
  • Power concentrated in the hands of one political party, as it is here in Massachusetts, leads to bad government and poor decisions
  • A strong military and vigorous homeland defense will protect our interests and security around the world and at home
  • All Americans deserve health care, but we shouldn't have to create a new government insurance program to provide it
Here's the thing.  Most of the assumptions underlying these statements are simply wrong - factually incorrect.  They have been pounded out by a corporate/conservative misinformation machine that just makes stuff out and puts it out there on TV, the radio, email forwarding and every other channel they can find.  

But the facts are that the federal stimulus didn't "make government bigger," the "out-of-control spending" occurred under the previous Republican president, we spend more on military than every other country in the world combined - and it is the largest government spending program and contributing to the debt, and the health care reform specifically doesn't create a government insurance program (it should) and saves money rather than increase spending.

The Right has a message machine that has been repeating misinformation and getting away with it, because: 
1) The leadership of the other party has let them get away with it.
2) There is no comparable megaphone with which to refute the misinformation.

The same is true here in California, and we may be heading for similar election turnovers.  Republicans repeat things that simply are not true, but there is lack of leadership from elected democrats and almost no megaphone with which to counter the untruths. The example we regularly bring up here is the assertion, repeated over and over, that businesses and rich people leave California because of taxes and regulations.  Of courase this just isn't true, but is formulated in a way that sounds like it could be true if you just don't think about it, and leads to large corporations having even more power over our lives and the wealthy having an even greater share of all income and wealth.

Of course, people and businesses that do leave the state do so because of the high cost of living, which is the result of so many poeple wanting to live here.  It just costs more to live in a nicer place.  And as I wrote last week, it is a nicer place because of the government and the public structures that We, the People built.  In other words, California is a nicer place because of those regulations and taxes!

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You hear it over and over again from California conservatives, "Cut taxes and cut spending," and "government spending is too high."

So what does this mean to YOU? How does this affect your life?

Simple answer, cutting spending means that your schools, roads, police and fire protection, lines at the DMV, parks, environment, food safety inspections, services to help small businesses and courts all deteriorate. It means that it costs more - much more - for you to send your kids to college. That is what "cut government spending" means.

And in spite of what you think, their promise of cutting taxes rarely means your taxes. There is a huge concentration of income and wealth at the very top, which means that tax cuts really mostly benefit the very, very wealthy. Even the well-known Prop 13, thought of as helping homeowners, shifted the tax burden from the corporate owners of commercial property to middle class citizens. From, Corporate loopholes make Prop. 13 crippling for state:

Thirty years ago, commercial property owners contributed 59 percent of property tax revenues and residential property owners contributed 41 percent. Today, we see a virtual flip: commercial property owners contributed just 43 percent of property taxes in 2008, while residential property owners contributed 57 percent.

Another thing you constantly hear are calls to cut the number of government employees and their benefits. If you think about it, layoffs and pay cuts for government workers (teachers, police, firefighters, road workers, etc.) translates into increasing pressure to cut your own wages as well, plus it means fewer customers for California's small businesses, fewer teachers in our schools, increased crime rates, etc. Cutting their benefits means that your own benefits come under pressure as well.

Conservatives promising that cutting taxes and spending are good for you have held sway for the last few decades. They are always promising that tax cuts will make things better for regular people. But they haven't gotten better. The real tax burden keeps shifting further and further away from the wealthy and powerful and onto the backs of the middle class. Meanwhile the things that our government does for us are reduced and reduced, so life gets harder.

The lesson to learn is: glowing promises of a free lunch usually mean that you are the lunch.


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The country is trying to pass health care reform but a single Senator is able to block the popular "public option" and "Medicare buy-in" plans, because he says it is wrong to let the public have any choice besides for-profit companies.  Actually it is one Senator plus the entire Republican caucus - but we already understood that they do the bidding of the big corporations that fund them. The rule of the Senate allow minorities to thwart the will of the people and block bills.

An NBC/WSJ poll that came out yesterday showed that 45% of the public found it unacceptable that the public option was removed, and 42% acceptable, but 58% wanted the Medicare buy-in and only 32% didn't.  But never mind, both of those are out because of one Senator (joining all the Republicans.)  This is a clear example of democracy thwarted.

In California we can't pass a budget or tax corporations or the wealthy to pay for our schools, colleges and universities, reads, etc. for the very same reason.  Our legislature is structures to that a minority can thwart the will of the people.  It requires a 2/3 vote to pass a budget or raise revenue.  And we have a minority that is funded by the big corporations, with one corproate PAC funded by Wal-Mart, Blue Cross of Ohio (?), Reliant Energy and others putting almost $1 million of into just one race last year.

It is time to trust the people and change the system in Washington and the system in Sacramento. It is time for majority rule.

 


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(This article originally appeared in the San Jose Mercury News)

While America has always been a place where a person could get rich, it used to be that you got rich a bit more slowly, and everyone benefited in the process. This is because we used to have very high tax rates at the top.

A person could do very well, but income that came in above a certain level was highly taxed and used to pay for the teachers, police, courts and roads that enabled businesses to thrive. Just how high were taxes? During America's "golden years" of 1951-1963, tax rates were over 90 percent on income over $400,000. Then through the 1960s and 70s, they were 70 percent on income above $200,000.

This had many beneficial results -- especially for the people who paid higher taxes. Back then, government could afford to invest in programs that improved everyone's standard of living, including health, knowledge and technology, all without borrowing. History recalls these as the years we created and grew our prosperous middle class, built our public universities, conducted our economy-changing scientific research and developed a culture of thriving entrepreneurial businesses.

Back when it took time to make a fortune, business people had to rely on the health of the greater community to nurture their own enterprises. They had to think and act long-term. They had to carefully build solid businesses that satisfied their customers. They had to hold on to workers because their experience was valuable.

Meanwhile, the roads and bridges used by their trucks were kept in repair, our schools provided excellent education to their potential employees, and our courts were well funded to properly enforce contracts. Businesses and communities depended on each other to do well.

But once top tax rates were lowered, vast personal fortunes could be realized from a single quick deal. This created incentives for people to engage in activities that we can now see helped make our country a worse, and less prosperous, place.

Corporations became predatory, caring little for the community because executives planned to get rich quick and leave soon. Short-term business models that cut employees to the bone and took advantage of customers began to make sense.

Because of reductions in tax revenue, we cut spending on schools and infrastructure. Yet even with all these cuts, our federal government had to borrow to make up a shortfall. Now we have a massive debt that costs us hundreds of billions in interest each year.

Once businesses' interdependence with the community went out the window, it became more profitable to outsource or sell off our manufacturing capacity. Then, as communities fell apart, those few who benefited from such business practices could just fly away in their private jets. The greater community was of no use to them except as a crop to be harvested.

We can see the effects of this quick-buck, short-term thinking all around us today. Our roads and bridges and schools are falling apart. The experiment in low taxes has nearly destroyed our economy, too, and may yet if we don't stop borrowing instead of asking the wealthy to pitch in.

So it is time to change the formula. It is time to make our businesses part of our communities again. The way to do this is to continue to help people become wealthy -- just a bit more slowly, please, and bring us all along. Bring back the top tax rates of our golden years so we can all enjoy the benefits of our economy again.


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California Senator Dianne Feinstein has joined a group of Senators threatening to allow the nation to default on its debt unless a commission to "fast track" cuts to Social Security is created. 

Talking Points Memo describes what is going on,

Moderate and conservative Democrats want to empower an outside entitlement commission to reshape major domestic spending programs like Medicare and Social Security, and they're threatening a truly nuclear option to get their way. If Congress does not create this commission, they say, they will vote against must-pass legislation to raise the nation's debt ceiling, which would trigger a default, and, perhaps, economic calamity.

"I will not vote for raising the debt limit without a vehicle to handle this," Sen. Dianne Feinstein (D-CA) told McClatchy. "This is our moment."

About this commission,

As proposed, it would hand a significant amount of Congressional authority over entitlement programs to an outside body. That body would make recommendations that Congress would have to vote on, up or down--no filibusters. That's a bridge way too far for liberals, who see the commission as a backdoor approach to gutting Social Security.

Here's the problem.  Many people believe that there is a problem with Social Security - that it is "going broke."  But the fact is that Social Security has a huge reserve in the bank.  Social Security runs a huge surplus, and that surplus has been added to this reserve every year for decades.  Social Security will continue running a surplus until at least 2017, and can then draw on that trust fund to make up any shortfalls for at least the next 30-40 years.

Ah, but where is that trust fund?  According to a recent Washington Post story, 

The Treasury Department has for decades borrowed money from the Social Security trust fund to finance government operations. If it is no longer able to do so, it could be forced to borrow an additional $700 billion over the next decade from China, Japan and other investors. And at some point, perhaps as early as 2017, according to the CBO, the Treasury would have to start repaying the billions it has borrowed from the trust fund over the past 25 years, driving the nation further into debt or forcing Congress to raise taxes.

So there is the problem in a nutshell. They spent it. They spent it on tax cuts for the rich, and now that people are retiring and want that money, Senator Feinstein and the others don't want to raise taxes on the rich to pay back what was borrowed from the nation's retirement account.

This is the same as the situation in California. They cut taxes and made up the shortfall with various gimmicks, until the gimmicks ran out.  So now that the bill is due the protectors of the wealthiest talk about "spending" - which is government coming through for the people - as the area to cut, instead of turning to the people who received all the benefits of the earlier actions.

Senator Feinstein, keep your hands off of my -- and everyone else's -- retirement account.  You borrowed that money, now pay it back.  Don't think you can solve this problem by asking me to accept less than what I was promised because you handed that money out to the wealthy.  The people who got it should be the ones paying it back, not the people it was taken from.  You already took money from the taxpayers to bail out the wealthiest, don't do it again.


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As part of our on-going look at the reasons for California's dysfunctional government, we have asked a number of current and former legislators for their views on just what is causing the problem.
 
Long-time SOCa supporter and State Senator, Loni Hancock has written recently about her take on what are the structural problems in our system of governance and what reforms we need to undertake to return our system to its former visionary glory.
 
She has submitted the following observations based upon her service on the newly created Joint Select Committee on Improving State Government which was formed by the legislature to consider how to reform and fix this terribly and unquestionably broken system. -- HBJ
 
Here are her latest thoughts:
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From the desk of Senator Loni Hancock:

The cry for reform of California's governance system continues to grow. As of November 5, there were no less than twenty-two initiatives either already in circulation or awaiting a title and summary from the Attorney General that deal solely with California's governance process. 

The proposals range from lowering the vote threshold to pass the state budget to the establishment of a constitutional convention to changing the way local government is funded to a part-time legislature.  The ideas are from all across the political spectrum - conservative to liberal. 

One thing is clear, Californians want reform. The challenge will be finding consensus on which reforms should be advanced.

Two weeks ago, the Legislature began its own effort to look at reforms.  The Joint Select Committee on Improving State Government held its first of five scheduled hearings.  The witnesses ranged from Bill Hauck, the former Chairman of the California Constitutional Revision Commission to former Republican Assembly Leader Robert Naylor to the current Democratic State Treasurer Bill Lockyer.  Surprisingly, there was agreement in all the testimony - the deterioration of professionalism in the state legislature has had a dramatic impact on its ability to solve California's problems. 

According to research provided to my committee earlier this year, the Senate Elections, Reapportionment and Constitutional Amendments Committee, the National Conference on State Legislatures concluded that California is one of three states with the nation's strictest term-limits law - limiting Senators to two four-year terms (up to a total of 8 years) and Assemblymembers to three two-year terms (up to a total of 6 years).  Since California's term-limits remain relatively popular with voters, completely eliminating term-limits is not politically feasible.  However, amending the law to allow legislators to serve all their time in one house would allow them to develop policy expertise without eroding the intent of the law.

Last year's effort to amend the law to allow legislators to serve a total of 12 years in either house, Proposition 93, did just that.  However, it included a provision that would have allowed sitting legislators to remain in office. This provision sank the initiative; the public voted it down 53.5% to 46.5%. 

After listening to the testimony at the Senate Committee hearing, I am convinced more than ever that we must make another attempt at "softening" the term limits law.  To that end, I have authored SCA 24, which would, like Proposition 93, change the total number of years an individual can serve in the Legislature from 14 years to 12 years.  The measure will allow an individual first elected to office in November 2010 to serve three four-year terms in the Senate or six two-year terms in the Assembly or a combination of the two. 

However, unlike Proposition 93, individuals who have served or are currently serving in either house will not be able to extend their terms - they will be bound by the existing law.
SCA 24 will allow Legislators to develop policy expertise, reduce the number of legislators looking for "the next office to run for" and reinstill confidence in the legislative process.  I believe that this change to term-limits can find consensus and is an important piece in our effort to reforming California.


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In Paranoia Strikes Deep, Economist/columnist Paul Krugman explains today the difficulty California has getting budgets passed, and how this threatens the ability of the entire country to govern itself:

... the G.O.P. has been taken over by the people it used to exploit. ... Once elections were won, the issues that fired up the base almost always took a back seat to the economic concerns of the elite. ... After the Democratic sweep, however, extremists could no longer be fobbed off with promises of future glory. ... Because these people aren't interested in actually governing, they feed the base's frenzy instead of trying to curb or channel it. So all the old restraints are gone. ... 

... And if Tea Party Republicans do win big next year, what has already happened in California could happen at the national level. In California, the G.O.P. has essentially shrunk down to a rump party with no interest in actually governing -- but that rump remains big enough to prevent anyone else from dealing with the state's fiscal crisis. If this happens to America as a whole, as it all too easily could, the country could become effectively ungovernable in the midst of an ongoing economic disaster.

The point is that the takeover of the Republican Party by the irrational right is no laughing matter. Something unprecedented is happening here -- and it's very bad for America. [emphasis added]
This is a perfect description of what has happened in California, and could spread to the entire country.

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This page is an archive of recent entries in the Government and governing category.

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