Showing posts with label Jill Schlesinger. Show all posts
Showing posts with label Jill Schlesinger. Show all posts

Thursday, August 6, 2020

Don't Trust The Repuke TRUST Act: It Will Gut Social Security & Medicare On Top Of Leaving 55 Million Without A Covid Lifeline


Brane Space: Protecting Social Security in Event of Financial Collapse

"True to form, Republicans are trying to gut Social Security and Medicare in the middle of a pandemic. This bill doubles down on using secret, closed-door panels to undo these earned benefits. I will oppose any bill that includes a fast lane to cut Social Security and Medicare."
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Sen. Ron Wyden's tweet above says it all.

As Jill Schlesinger noted last week when the last jobless numbers came in:

"That extra $600 a week was spent in the economy. So without a new package I think we are going to see the economy flatten out and that would create a really big problem in getting these millions of people back to work."

Let's cut to the chase:  

The Repukes  are trying to use the pandemic to cut  Social Security and Medicare benefits behind closed doors, using a bill with an Orwellian name—the TRUST Act.  The TRUST Act creates a closed-door committee to fast-track cuts to our earned benefits. And now, Sen. Mitt Romney (R-UT) and Sen. Mitch McConnell (R-KY) have put the bill on a fast-track of its own by including it in the Republican Covid-19 package known as the HEALS Act.

These vermin who are plotting to use this public health crisis as a vehicle to ram through cuts to  earned social insurance benefits, are fungal pond scum. The American people will never forget that they used the worst global cataclysm of modern times to try to rob millions of their Social Security and Medicare benefits. 

Most of the politicians pushing this dastardly plan are Republicans. Prominent Democrats are speaking out against it, including Sen. Ron Wyden (D-OR), the ranking member of the Senate Finance Committee and lead Senate negotiator on the relief packages.  He went on to explain:

The TRUST Act will result in far-reaching cuts to Social Security and Medicare—that is the intention of the bill. The legislation sets up closed-door commissions to fast-track the destruction of these programs. In 2010, a similar closed-door commission made cuts to the Cost-of-Living Adjustment (COLA); hiked the retirement age (which is an across-the-board benefit cut for all retirees); changed the Social Security benefit formula to reduce the amount people receive each month; and made cuts to Medicare that forced seniors and individuals with disabilities to pay more for drugs, doctor visits, and hospital care by increasing cost-sharing like co-pays.

The last thing struggling Americans need right now is a secret panel designed to slash their earned benefits and further undermine their economic security. It’s astonishing that attacking Social Security and Medicare are Republicans’ priorities at this moment, not protecting people’s health care or ensuring families can afford to stay in their homes and put food on the table.

Rep. John Larson (D-CT), lifelong champion of Social Security and chair of the Social Security subcommittee, condemned it with the strongest language possible:

This is a direct assault on Social Security benefits. The TRUST Act Commission would make it easier to fast track cuts, while ignoring the urgent needs to strengthen Social Security, especially during this pandemic. This would just kick the can down the road and ignore regular order. It’s Congress’s responsibility to do this correctly and vote! As Chairman Neal points out, we have seen this before with the 2010 Bowles-Simpson report, which proposed major Social Security and Medicare cuts. Instead, what we need to do is enact the Social Security COVID Correction and Equity Act to increase benefits, rather than cut them.
But a small splinter group of Democrats, publicly led by Sen. Kyrsten Sinema (D-AZ), supports the TRUST Act. They are the most reprehensible of all, for giving it bipartisan cover.

It’s not too late for politicians who originally supported the TRUST Act, when it was first introduced in January, to partially redeem themselves. They need to make it clear that even though they supported the bill, they do not support holding the pandemic response package hostage to jam it through behind the American people's backs.

We already know that Mitt Romney and his ilk are  holding personal protective equipment for nurses and doctors hostage so they can cut  Social Security benefits. What Krysten Sinema is doing is holding financial relief for millions of Americans who lost their job through no fault of their own hostage in order to cut Medicare benefits. It is sick, even by the gutter standards of the current reality with a deranged traitor scum as president.

Their justification for including the TRUST Act in the Covid-19 package is telling. They claim that with this coronavirus relief package adding to the deficit, we need the TRUST Act to "rein in the national debt." What they don't mention is that  Social Security doesn't add a single penny to the debt  because it had no creditors.  Even Ronald Reagan understood that!   At the same time Medicare is far more cost-effective than private insurance because it's administrative costs are 10 -15 times lower than private insurance.

This isn't really about the deficit. It's about achieving a long-standing right-wing ideological goal to gut senior Americans'  earned benefits—and using the Covid-19 catastrophe to do it. That's why even AARP, which rarely takes a stance on Social Security legislation, has come out against including the TRUST Act in the next pandemic relief package.

Dems needs to fight like demons to insure no eventual compromise arises which contains this refuse buried inside it, akin to a Trojan horse.

See Also:




Thursday, July 30, 2020

The Fed Warns Of Economic Calamity If People Don't Change Behaviors - And Dotard Retweets Idiot Quacks

Brane Space: Demonic Disease: How Belief in the Satanic turns humans into  Satanic beings
"I know it's true, what that Stella Immanuel said about demons! And I'm gonna retweet it! And yeah, I am a very stable genius!"

"I was probably the healthiest person you ever met. No pre-existing conditions, ski seventy to one hundred days a year.  But I got Covid, had sepsis, had MRSA, had a collapsed lung, and on a ventilator for thirty -one days. Hospitalized for sixty. Loss of blood pressure caused me to lose several fingers. I was on my death bed. This thing is for real, This virus is no joke,"      Greg Garfield,, Covid survivor, this morning on CBS

"It's so fundamental we can't say it enough. Until the virus is contained  the labor market won't be able to fully recover, leaving people in need of support. The path of the economy will depend significantly on the course of the virus."  - Fed Chair Jay Powell, WSJ, 'Business & Investing', p. B12. today.

As we learned this morning that the GDP shrank by 32.9 percent in the previous quarter (see WaPo link at bottom), we are now on notice that we had best change behaviors - or NO  part of the economy is coming back.  The news backed up  Federal Reserve  notices and interviews (over the past 4 weeks)  that if Americans don't collectively get on board in dealing with the virus, we are all for the economic high jump ('Fed's Outlook Grows Gloomier', WSJ, July 28, p. A2).    As noted therein:

"Officials have warned this month in speeches and interviews that the economy faces a deeper downturn and more difficult recovery if the country doesn't take more effective action to slow the spread of infection."

Boston  Fed President Eric Rosengren was even more blunt in his assessment:(ibid.):

"This economy will face severe economic consequences if the public health response doesn't improve."

Adding:

"The Fed's policy response is not going to be able to offset all the losses if we continue to make serious public health mistakes."

This was endorsed by Dallas Fed President Robert Kaplan:

"How well we follow the health care protocols from here is going to be the primary economic tool we have.left."

In other words, the Fed is out of miracle moves to rescue the economy, and this is the crux of the problem - as so eloquently stated by Jay Powell (see top quote). . It's now up to U.S. citizens to get their act together and work together to alter the course of the virus in the U.S.  This instead of engaging in endless mask wars and other self defeating idiocy while buying into fake notions of personal liberty.  We have to understand in this moment of peril our personal freedom has to be sacrificed for the greater communal good.  If we don't grasp that, if we don't act accordingly, you could as well write our epitaph - and not just for the economy.  In addition, the economic disaster coming will almost surely be compounded if a new huge Covid benefits package  (HEROES ACT) isn't passed, and I mean by TODAY!  If that $600/week unemployment extra benefit isn't in the package you can pretty well kiss the GDP and economy goodbye.  GDP depends on spending, and little or none will be done without the enhanced unemployment benefit.  As  financial contributor Jill Schlesinger said on CBS this morning:

"That extra $600 a week was spent in the economy. So without a new package I think we are going to see the economy flatten out." 

Alas, any change in behaviors for the 1 in 4 Americans who think it's all a "plandemic" or "hoax" may be a long way off.  This is given we have a  leader who is totally incompetent in his response to the pandemic, and done everything -including sidelining top medical experts - to ensure the death toll hits hundreds of thousands by November.  Worse, he has now started pandering to a classic crackpot and spreading her idiocy with his retweets.

Maybe Trump  sings the praises of Stella Immanuel -  a Houston pediatrician and demon believer -

because he senses her IQ is as low as his.   Immanuel, leader of Fire Power Ministries,  believes endometriosis and other potentially dangerous gynecological conditions are the residue of sexual intercourse with demons.  Incredibly,  this quack based at  the Rehoboth Medical Center in Houston, also has claimed "alien DNA"  has been used in medical treatments.  (I do hope in none of my prostate cancer treatments, including cryo-freezing of cancer cells back in 2017.  Were these replaced by 'alien DNA'?  Inquiring minds want to know!)

This crackpot quack Immanuel also teaches that demons, known as “spirit husbands” and “spirit wives”, once walked the Earth in physical form. After they drowned in Noah’s flood, however, they carried on only in non-corporeal form. They visit humans in sexy dreams, which aren’t dreams after all but spirit spouses making a booty call. This is almost as cracked as one "minister" (Contessa Adams) once claiming incubi and succubi inhabited sex toys and could possess the humans using them, see e.g.
By contrast, Immanuel's  demons are responsible not only for diseases of the female reproductive system but also for male impotence, most financial troubles, marital discord and spiritual malaise.

No, folks, you cannot make this bullshit up.  But this is the sort of irredeemable crappola our  great leader wastes his time tweeting and retweeting.  As well as watching on the tube.  Don't believe it?  You can find Immanuel on Trump’s Twitter feed, where she testifies to the power of hydroxychloroquine - the magic snake oil Dotard and his ass clowns have been humping for months now.   Sadly, millions of Americans heard or saw her advice, thanks in part to the Dotard's amplifying effect,  this before Facebook took down her page and the video (after 20 million views).

Earlier Twitter took down the offending video because (WSJ, July 29, p. A6):

 "It violated its Covid 19 misinformation policy which prohibits misleading claims asserted as fact to influence others' behavior."

In the wake of that a Trump spokesman fulminated (ibid.):

"It is beyond the pale for Twitter to silence the views of medical professionals who happen to dissent from the establishment's anti-hydroxychloroquine  narrative."

But those weren't "medical professionals" but a gaggle of medical quacks and associated hare-brained imbeciles, like Stella Immanuel.  As for the anti-hydroxychloroquine narrative, that is pure bollocks.  The malaria drug has already caused a number of deaths from inappropriate use and the FDA rightly revoked its emergency use authorization.

The most gratuitously odious event from Tuesday's show news conference? Trump asserting Dr. Anthony Fauci "had misled the public"  and also "Fauci and the Democrats perpetuated Covid deaths to hurt Trump."

Fauci fired back squashing the Trump claim.  As far as hurting Trump, the only one who's done that is the Dotard himself, because of his colossally incompetent response to the pandemic.  Tweeting his numskull conspiracy ideations and watching Trump TV when he ought to have been doing all he could to protect American lives.

The Reeptards, including two Colorado idiots now filing a lawsuit  in Fort Collins, to claim masks are "unconstitutional"  and are "political speech" - ought to be forced to see an image of an intubated Herman Cain - before he croaked from Covid.


 Cain, recall, posted a photo of himself at the Trump Tulsa rally, hamming it up with other unmasked goobers.
Cain sits among a group of fellow maskless Trump supporters who hold up "Black Voices for Trump" signs.

A pity this lot didn't see Greg Ip's WSJ piece today (p. A2) noting the death rate from Covid 19 is "5 to 40 times deadlier than seasonal flu."

Not that it would have made much difference.  It seldom does to those on the lower end of the IQ (Bell) curve.

See also:

Economy shrinks at fastest quarterly rate on record


And:
by Robert Becker | August 3, 2020 - 6:19am | permalink
And:

Tuesday, May 14, 2019

Maybe Trump's Idiotic Tariffs On Chinese Goods Will Bring Down His "Great" Economy

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"Waddya want? Tariffs ain't my forte. I only graduated Wharton 'cause I cheated my way through!"

"The DOW is now nearly 1300 points lower than in January 2018 when Mr. Trump began his tariff offensive - despite the best 12 months of economic growth since 2005 and healthy corporate profits.... Mr. Trump seems to sincerely believe tariffs are a free lunch....But tariffs are taxes that raise the price of Chinese goods for U.S. consumers and producers."   WSJ editorial today  'The Cost of China Tariffs.'

"Every time Trump opens his mouth about tariffs he adds to economic illiteracy in America". Lawrence O'Donnell, last night on 'Last Word'.

"Not for the first time in his life, Donald Trump seems intent on taking a massive inheritance and lighting it on fire.  But this time instead of his daddy's money it's in the form of the nation's entire macro-economy.  It's worth noting the economy is doing pretty well by the traditional metrics... there is no reason Trump should do anything but watch his shows, and ride the strong economy into the next election.

But he's been crowing about how fixing trade with China will be his key.  And the same guy who managed to lose money running casinos, who lost money selling America football steaks and alcohol, seems intent on destroying the American economy too." Chris Hayes, last night on 'All In'.


The headline on the front page of today's Wall Street Journal  ('Trade Threats Hit U.S. Markets')  ought to have had  the sub-header 'Trump Trade War Threatens To Scuttle His Economy')  As the DOW tanked yesterday to the tune of 617 points, it was clear Trump's trade antics were weighing heavily on the Street.  And why not? Because even the few remaining floor traders know Trump is an imbecile on trade and his belief that the U.S. is "getting the better of China"  is bollocks. I.e. because we have tariffs on $200b of their goods compared to their tariffs on $60b of ours is  nonsense.  As oil trader Dan Dickers pointed out on 'All In' last night, "this is the simpleton's kind of view of what trade is really about."  Adding:

"He's a salesman. He sells steaks and airline rickets and hotels and what have you. So as far as he's concerned if I'm selling you more than this guy I'm winning. So that's why the trade is good for this country - according to him- because I can slap on half a trillion in tariffs on Chinese goods and they can only hit us for sixty or seventy billion. So hey I'm winning."

The other piece of flat out ignorance from the Dotard is how "China will have to pay these tariffs" unable to process it is not countries but consumers that do the paying. And in this case, U.S. consumers will be paying out the wazoo. As former Clinton Treasury Secretary Robert Reich explained last night ('Last Word') we've known how tariffs work for 130 years now. The worst case was Smoot-Hawley which "plunged us into a deeper Depression than we were already in".    Why? Because tariffs always hit the consumer as an added cost sales tax - often on essential goods. When those foreign goods, whatever they are - toilet paper or backpacks- enter U.S. ports with tariffs tagged on, the companies that pay those tariffs get their money back by charging U.S. consumers the amounts they had to pay and on each and every item,  This isn't rocket science but for Trump maybe it is.

Earlier (May 6 post),  I indicated the only way we may be able to get rid of Trump and his criminal cabal is for the economy to crash.   That prospect may now be a lot closer, given Trump has gone batshit crazy,  imposing 25 percent tariffs on $200 billion of Chinese imports and also planning to impose the same tariffs on $325 billion more.  Essentially putting a sales tax on all Chinese imported products Americans may buy.

Trump claims the payment will be on the Chinese side, but as Jill Schlesinger noted yesterday this isn't true.  Schlesinger also emphasized the problem with these new  tariffs is that the U.S. importers cannot afford to absorb the 25 % increased costs so they will have to be passed on to U.S. consumers.  A case in point as noted in the WSJ (May 10, p. A3):  More than 1,000 Chinese companies import auto parts to the U.S. Because of these new tariffs, a new car (using them) will now cost $4, 400 more. Process that!

Besides auto parts, what sort of Chinese imports are we talking about?  According to Ms. Schlesinger:

"Furniture is a big one, building supplies is a big one, shampoo, dog collars, toilet paper, art supplies, ceramic tiles, windshield glass, Christmas tree lights, backpacks, luggage, baseball gloves, leather handbags, any of the fabrics that go into fleece. There are thousands of items on this list including foods - beets, carrots, kale."

One estimate in the WSJ is that U.S. consumer will pay an additional $767 a year in higher prices for the goods they purchase, and that's on average.

When CBS' John Dickerson mentioned that Trump suggested buying goods made in other nations, Schlesinger quickly slapped that down saying all that happens is that U.S. manufacturers use the tariffs on China as an excuse to jack up their own prices. She mentioned the case of dryers being jacked up by $86 and $92 each last year from the tariffs issued then. 

Apart from that secondary vendors would pose other problems, namely inferior quality.  According to Jay Foreman, a CEO of one importing company in Boca Raton FL:  "We've all worked for more than twenty years to get the manufacturing safety levels to the highest standards"  so "cannot simply switch"  to vendors in India, Vietnam or Singapore.

Bottom line, as Jill Schlesinger put it:

"Everyone better be making more money because these things are going to cost us way more money."

But can consumers make that much more money? The average U.S. consumer did benefit somewhat from the Trump tax cuts (avg.. $355 a year) but the increased de facto tax wrought by tariffs essentially wipes that out. It also isn't sanguine that the Federal Reserve has now noted many in the so-called middle class (claimed to range from $40,000 - 85,000 income) cannot afford a single emergency expense of even $400. 

It is also a spun narrative to depict China as the singular trade "bad guy" because we have a $417b trade deficit with them.   As pointed out in the James Bacchus article 'America's Abusive Trade Practices (WSJ, May 13, p. A19)  "U.S. regulators continue to drag their feet on WTO compliance, and gravitate toward the outer edge of WTO rules - and find new ways to discriminate against Chinese imports. The prospect of ending these practices could be a powerful inducement for China to abandon its own unfair trade practices."

So, contrary to Trump's twaddle, the offenses on trade practice are not all one way on China.

Oh, another thing. Last year the WSJ's Greg Ip  answered the question of why the U.S. itself runs a continuing  trade deficit:

"Because it consumes more than it produces while its trading partners collectively do the opposite.. Another way of saying this is that the U.S. invests more than it saves while other countries save more than they invest."


Let's parse those words a bit because they may seem inscrutable or counter intuitive to many. Why not invest? Save? Aren't you saving when you invest? Well, no.  Saving means stashing money, capital into fixed income instruments like CDs, money markets (not funds), and regular bank savings accounts, as well as in immediate fixed annuities. Anything which is unlikely to be perturbed, affected or lost in a stock market correction or crash.

"Investing" means plowing money into regular stocks or into mutual funds - say as offered in your IRA or 401(k).  These stocks or funds are tied to actual products or services, say Apple Iphones, or Musk's Tesla, or even Chipotle - as incredible as that sounds.  The investor puts his or her money into investment devices and instruments which he believes will offer a return on the investment because the product will grow in share value, or in actual distribution- which ultimately leads to higher market valuations. 

But as we've seen the past week, with $1 trillion in stock market losses from Trump's trade tantrum, that doesn't translate into strict saving. No way.

At the other end of the Trump trade fracas, it's the midwestern farmers getting clobbered as they have lost a huge market (in China) for their soybeans, nuts etc.   There are actually now huge soybean crops - unable to be exported- and going down the drain. One might say they are basically operating on fumes,  and with margins so low they could face farm or home foreclosures soon. (59,000 more farm jobs are expected to be lost with this current trade face-off, according to reports on CBS this morning.)

We now know from the Congressional Research Service, that because of Trump's trade tactics, national net farm income dropped by more than $9  billion in 2018 or more than 12 percent. Meanwhile, a trillion dollars has been lost in the stock market since last weekend.

But not to worry! Trump has announced he plans another handout ("subsidy")  to the farmers....errrrr Trump voters - from the hands of U.S. taxpayers-   and to the tune of $15 billion.   To get that done without incurring more deficits he wants to cut food stamps by 750,000 recipients as well as using HUD to limit access to public housing - which could displace 55,000 children. 

This is the traitor, nincompoop and rat we have running our country right now - into the ground, along with the Constitution and rule of law.


See also:


And:


Wednesday, March 6, 2019

Why Two Tropes - "There's NO Retirement Crisis!" & "Workers Earn A Shrinking Slice of Pie" Cannot Both Be True

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Recently two different articles were published in two different issues of The Wall Street Journal (print edition). The most notable aspect is that the two make claims that logically must contradict each other.  Before presenting them let's agree to the proposition that unless one earns a very good wage - at least up to the standard of being able to buy a starter home in the community one lives-  s/he will not be able to have any kind of secure retirement.'

So we begin with Andrew Biggs''s op-ed "The Phony Retirement Crisis" (March 1, p. A15) in which he claims:

"There is no retirement crisis among either today's retirees or tomorrow's. Eight in 10 retirees tell Gallup they have enough money to 'live comfortably', and 6 in 10 working age households say the same. Seventy-five percent of retirees tell the Federal Reserve's Survey of Consumer Finances they 'have at least enough to maintain their standard of living."

Meanwhile, from Paul Kiernan ("Workers Claim A Shrinking Slice of the Pie",  Feb. 25, p. A2) we learn:

"Labor's share of domestic income has been declining since 1970 and has barely recovered in this expansion from the lows last seen when the U.S.  was pulling out of the Great Depression."

Note that was 'Great Depression' not the Great Recession!

He goes on:

"Employee pay and benefits fell to 52.7 % of gross domestic product in last year's third quarter for the fourth straight quarterly decline, according to the Bureau of Economic Analysis.  It was as high as 59 % in 1970 and 57% inf 2001.  If workers were commanding as much of domestic income as they did in 2001 they'd have nearly $800 billion more or $5,100 per employed American."

Think about that!  $5, 100 more per working American.  In other words, with that added amount we would not see - as we did during the shutdown - the god awful stat repeatedly trotted out that 4 in 10 American workers did not even have enough saved to cover one emergency or income crisis - with inflow cut off 4 weeks or more. Moreover, the partial shutdown brought to light that most workers in the US of A - even with "good paying jobs" - didn't have the luxury to miss one single paycheck!  One!  Is this a solid barometer for future retirement? I seriously doubt it!

Kiernan goes on solidifying my contention that either Biggs is lying through his teeth, or the people responding to those polls are  doing so out of a misbegotten false pride:

" The numbers reflect a decades long trend that has coincided with stagnant middle class incomes...while corporate profits benefit some households in dividends and higher stock prices, wages are the biggest source of income for most Americans."

.  This is germane given that - "while the labor share has fallen, business profits are on the rise."

Kiernan noting they climbed from 12 % of gross domestic income in 1980s "to more than 20 percent now".

This report by Kiernan occurred with 3 weeks of a separate Denver Post item ('Teacher Pay Falls Below Average In Most States', Feb. 3, p. 5K) wherein we see:

"Women teachers once earned more than similar workers in other industries but now earn 15.6 percent less as of 2017.  Male teachers took an even bigger hit, earning 26.8 percent less than comparable workers."

This also dovetails with a separate D. Post piece noting the average Denver teacher's salary of $47.000 is nowhere near enough to buy even a starter home in the Mile High City, or even afford rent. (Now at about $1,500 a month).   Here in El Paso County, with Colorado Springs- the situation isn't much better.

According to one finance specialist appearing on KOAA-TV, the average renter in our county is in a retail service job and earning barely $10.22 an hour when that wage needs to be at least $20.65 an hour to make most rents and not pay more than 35 percent of income for them.   This bad news also comports with the enormous pressures on household mortgage debt  and auto loans - which have now pushed U.S. consumer debt to $13.3 trillion   (WSJ, 'Household Borrowing Hits High',  Aug. 15, p. A3), noting:

"Debts rose by $82 billion in the second quarter driven by rising mortgage, credit card and auto loan balances, according to the Federal Reserve Bank of New York's quarterly report on household debt and credit."

Adding, ominously:

"Total debt is now higher than before the financial crisis when widespread defaults, especially on mortgages, contributed to the longest and deepest recession since the Great Depression. After paying down debt through 2013, in aggregate, consumers gradually began to borrow again and household debt is now nearly 20 percent higher than five years ago."


Further, n "aggregate household debt grew for the 16th quarter.".

All of which tells me that Biggs is full of it. Either he is misrepresenting the facts or the people responding to the Gallup, Federal Reserve Consumer polls are lying, or the polls themselves are defective. Take your pick. But it is evident Biggs' claims of a rosy retirement future for most U.S. citizens don't square with his proportions. 

Let's also try to recall that despite those earlier WSJ pieces on household debt etc.  Biggs had also trotted out codswallop ('Memo To Trump: There Is No Looming Retirement Crisis', WSJ, Aug. 15).  He basically used the same false stats, ignored others - what we call selection bias - and wrote as brazenly as he has more recently.

In that earlier iteration I also beat back his bull crap, citing  The Hill in a special report, i.e.


"The Insured Retirement Institute found that only 23 percent of the Baby Boomer generation and 24 percent of Gen X-ers are confident their savings will last throughout their retirement years.

Small wonder, as more than 40 percent of Boomers and over 30 percent of Gen Xers report having no retirement savings whatsoever.

Of those with savings, only 47 percent of Boomers and 27 percent of Gen X-ers have saved $150,000 or more. With only 25 percent expecting income from an employer-provided pension in addition to Social Security, these are very low levels of savings."



Personal finance specialist Jill Schlesinger confirmed  the preceding take in her May 15, 'MoneyWatch' segment as part of CBS News:



"According to Fidelity Investments, the average 401(k) balance among its 11.8 million accounts increased to $74,600 at the end of the first quarter 2012, a 62 percent increase since the end of the first quarter 2009. While it's good news that balances are up, the number of accounts is alarmingly low for such an industry giant.


Older employees are better off, but not by much. Workers over age 55 have about $130,000 saved on average, and, for those over 55 who have been active in a plan for 10 years, that average jumps to approximately $230,000. That's certainly an advantage for plan participants, but even this group may not accumulate what is necessary to maintain their living standards.

The reason for the trend is obvious: The recession and market crash inflicted pain on retirement accounts, lopping off about a third of their total value. Additionally, as many families sustained job losses and lower incomes, they were forced to withdraw retirement funds or reduce contribution levels"

This leads us to ask: Why is Biggs on this phony campaign to try to lie about there being no retirement crisis?  Indeed, why are the WSJ editorial writers on the same kick? (p. A16, March 4, e.g. "The current generation of seniors is the most financially secure in history.  They're receiving more generous benefits from Social Security than they've earned because of an inflation formula that increases benefits at a faster rate than actual prices as measured by chained CPI."

Leaving out or ignoring the fact - in 1930s  U.S. history - sick  and indigent seniors typically went out into the bush or hovels to die by themselves.  So referring to today's seniors as the "most financially secure in history" isn't saying a whole hell of a lot.  Also, no word that the chained CPI doesn't factor in the much higher drug and other medical costs for seniors, and the need for more costly treatments such as for prostate and breast cancers, hip and knee replacement etc.. "The more generous benefits" then,   help cover the costs of things Medicare doesn't cover such as eyeglasses, eye exams, and dental care.

 Worse, the chained CPI ensures a race to the bottom via its assumptions.

Thus,  it  assumes that as prices increase, consumers will buy lower cost alternatives, reducing the amount of inflation they experience. For example, if the price of stew beef or hamburger rises by 30 cents a pound, they'll opt for cheaper pork. If pork rises too much they will descend to eating canned tuna. If that rises too much - well - bring out the Alpo! So no wonder many hard pressed seniors refer to the CPI COLA as the "dog food option".


The answer then is simple as to why neither Biggs or his WSJ editorial allies want any expansion of Social Security benefits!   This, despite the fact we can see from the preceding references and citations there is a real crisis, and also from a recent WSJ piece (WSJ,  March 1, p. B5) that it is getting more and more difficult for workers to train to get jobs with higher incomes.   This is especially so as the employers assert it is all on employees to do whatever retraining needed.  Quoting one  labor adviser (Andy Van Kleunen):

"We're asking people to negotiate an increasingly complicated labor market on their own."

Adding it can be particularly difficult to make training or education choices when "automation is making it unclear what the jobs of the future will look like."  Kiernan's article is also quick to point out, in terms  of why ordinary labor is losing an increasing portion of the 'pie' that  "workers' ability to negotiate wage increases has weakened".   Hand in hand with this, globalization has played a role in millions of job - many intermediate tech - being farmed out overseas to places like Bangalore or Delhi. This "gave manufacturers and tech companies a cheaper labor alternative."

In addition to all this, "employment contracts have become increasingly riddled with noncompete agreements, occupational licensing requirements and no poaching clauses that impeded worker mobility."  So good luck trying to move elsewhere for a higher paying job in the same industry.

What we DO know is that most ordinary workers are now missing that $5,100 per annum chunk of the pie cited by the WSJ's Kiernan, and hence are falling deeper and deeper into a savings hole for retirement.  Is there a retirement crisis? Yes indeed, according to most experts in the know. We also know a significant swatch of Social Security money is already having to suffice for many millions - who often have to choose between food and rent.

The only two options then become either implementing a universal basic income (UBI) or expanding Social Security.  Most reasonable people who've thought about it at all, believe the latter is far more politically plausible (and doable) than implementing the former.  

What we do know is that we had better act soon, or we will find the number of homeless citizens exploding - and not just in super high home price cities like Denver or San Francisco.

The new specter for older workers - and many others (an estimated 36 million according to The Denver Post Business section)- is automation- AI taking over their jobs.   

According to a 2017 WSJ  report ('Firms Leave The Bean Counting To The Robots') in the Business and Investing section (p, B5, Oct. 23) AI -based robots will soon be taking over CFO and accounting work across the land. That will essentially displace all those humans currently holding such jobs and likely pulling down big bucks in salary.  That includes older execs still salting away money for retirement.

The piece also observes:

"Two thirds of large global companies  expect to automate some or all of their finance department tasks over the next two or three years, according to new research by Hackett Group Inc. Hacket's report is based on benchmark and performance studies at hundreds of  large global companies."


Adding:

"The new technologies are designed to cut costs, liberate workers from time consuming repetitive tasks and - in many cases - reduce finance and treasury department employee numbers."

Jim Hightower - in a column around the same time - provided more insights in his recent column:

"With corporations socking away massive profits and the labor market still tight why are worker's wages stuck at miserly levels? One big reason is that corporate boards and CEOs have their heads stuck in a dreamy future. Nearly every economic sector is spending vast sums of money on workers p just not on human workers.

While few Americans are aware of it, bosses are investing in hordes of sophisticated autonomous robots powered by a cognitive technology called artificial intelligence. Instead of paying a decent wage to you, corporations are buying millions of these cheap, human-esque thinking machines in order to take a shocking number of jobs away - well, from you!
"


All of which, in concert, discloses the future for older Americans will not be bright at all and also likely explains why nearly 1 in 3 near-retirees have barely $50,000 saved. Indeed, MONEY  magazine noted (November, p. 44) pointed out:

"Most Americans today haven't even got sufficient money to live to 75 far less 90 or 95."

So where do the WSJ editors and Biggs get this codswallop that most seniors have never been better off?  Well, by twisting facts to try to slap down any thought of expanding retirement security - by expanding Social Security.

Stay tuned, because the false information blitz about retirement in the US of A isn't over - not by a long shot!

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Monday, December 17, 2018

Radical Right Wing TX Judge Tries To Smite Obamacare - Will He Succeed?


By now,  most citizens are aware of the news that a radical right wing nut masquerading as a federal judge -  Reed O’Connor -   has issued a ruling to strike down all aspects of the ACA, otherwise known as Obamacare.   Well, we already knew Texas was the home of right wing assassins who plotted (and succeeded)  in taking out JFK in Big D, but who would have reckoned that some 55 years later a  right wing Texas judicial assassin would try to take out 133 million Americans?  Because effectively, all those millions will be left without a medical pot to piss in if this travesty is upheld.

Let's reference that in historical memory the Right's zealots have always bitched about the Left's "activist judges" who they somehow believe constantly interject themselves to settle political disputes best left to congress.   But I warrant not one of the Right's wackos will so much as whisper criticism of this rogue judge who - in the words of two law professors writing in the NY Times-  has conducted "an exercise of raw judicial power, unmoored from the relevant doctrines concerning when judges may strike down a whole law because of a single alleged legal infirmity buried within."

Yet this asshole, another of the extremist mutants  (along with Brett Kavanaugh) inserted into the federal bench by Gee Dumbya Bush, did it.  To grasp what's going on we need to take a stroll down memory lane as regards the ACA, especially in the past year and a half. As readers may recall, the Reeptards were hell bent - following Traitor Dotard's lead - to repeal the entire law. They wanted it more than anything on God's green earth, and actually came within one vote of succeeding in the Senate.

This was by way of what came to be known as "the skinny repeal".  This would have eliminated the individual mandate, the least popular provision of the ACA that requires all Americans to have health insurance or face a fine. It would also remove the employer mandate, requiring certain businesses to provide health insurance to employees, as well as a tax on medical device manufacturers. But, more importantly, it would not touch the Medicaid program for the poor (hence the 'skinny' aspect) .  Bear in mind here that one of the key bases of the ACA was Medicaid expansion in dozens of states.

If this measure had passed the Senate with a simple majority, it would then have entered a conference committee with the House, where Republicans could have reconciled the differences and produced a larger repeal-and-replace measure . (Most likely including Medicaid.)  They could immediately claim 'victory' and that they succeeded in what they set out to do: repeal Obamacare (at least minimally).

This did not happen because Sen. John McCain entered the Senate chamber at the last minute and cast the deciding 'no' vote, killing the cynical skinny repeal effort. The Repukes never forgave or forgot this betrayal, and most regarded McCain as a latter day Benedict Arnold.

Long story short, unable to get the votes to repeal the entire law, the Reeptard Congress just zeroed in on  the tax  penalty, aiming to eliminate it. Again, recall that in 2012 the Supreme Court upheld this penalty as an exercise of Congress’s taxing power.   Justice Roberts, in fact, wrote the decision for the five justices in favor.

Backed into a corner like rats, the Repukes did the only other thing they could, fabricate a specious lawsuit to kill the tax penalty.  Given the traitor Trump administration refused to stand up for any part of the law - even cutting back funding for advertising the ACA-  all that was needed to upend it was one renegade  judge to rule against it.  In such an event the whole thing would come crashing down, including the popular parts, i.e. youngsters able to stay on their parents' plan until age 26, and protection for those with preexisting conditions.

Well, the Repukes got their wishes fulfilled when loose cannon judge Reed O'Connor ruled the ACA was "unconstitutional"  and hence the whole law needed to come down.  Right wing screwballs salivating to take down yet another Obama legacy point had endless wet dreams.

 The rest as they say is history, with Texas and and 19 other Reep- dominated states arguing in their junk lawsuit that with zero penalty, the mandate lacked a constitutional basis because it could no longer be enforced via a tax.   The little element they appeared to forget is that under the ninth amendment, health care is a right, one of what we call unenumerated rights of the Bill of the Rights. They forgot that tax penalty or no tax penalty, mandate or not,  you cannot repeal a right using a subterfuge such as invoked by this idiot judge.

But compounding their hubris and disrespect for the ninth amendment-    the  20 rogue states (and the Texas renegade judge O’Connor )   argued  -  that the rest of Obamacare must fall, too. They claimed that the mandate was so central to the A.C.A. that nothing else in it could operate without it.  Of course this is nonsense, because the whole edifice is predicated on health care being an unenumerated right under the ninth amendment. So merely dispatching the tax penalty from the law is immaterial to the centrality of the right.  The right still stands, even if there is no tax penalty.  Indeed, the inference is that the optimal way to validate the right is to maximize health care for all, which would be a single payer system.

Further, the U.S. is a signatory to a 1994 UN Declaration that health care is indeed a right.  But there is a more technical legal basis on which the judge's ruling can also be rejected. It was articulated by two law professors- Jonathan Adler and Abbie Gluck- writing in the NY Times three days ago.   According to the pair:

"That’s not how the relevant law works. An established legal principle called “severability” is triggered when a court must consider what happens to a statute when one part of it is struck down. The principle presumes that, out of respect for the separation of powers, courts will leave the rest of the statute standing unless Congress makes clear it did not intend for the law to exist without the challenged provision. This is not a liberal principle or a conservative principle. It is an uncontroversial rule that every Supreme Court justice in modern history has applied.

Sometimes severability cases are difficult because it is hard to guess how much importance Congress attributed to one provision, especially in a lengthy law like the Affordable Care Act. But this is an easy case: It was Congress, not a court, that eliminated the mandate penalty and left the rest of the statute in place. How can a court conclude that Congress never intended the rest of the statute to exist without an operational mandate, when it was the 2017 Congress itself that decided it was fine to eliminate the penalty and leave the rest of the law intact?"

The pair went on to note that in his vapid  55-page opinion  O’Connor claimed that we  "cannot divine the intent of the 2017 Congress because Congress didn’t have the votes to repeal the entire law but wished it could".   But as they retort:

"That’s ridiculous. Congressional intent is all about the votes. One would not say Congress wished it could repeal the Civil Rights Act if only a minority of Congress supported such a move. It is conservative judicial doctrine 101, as repeatedly emphasized by Justice Antonin Scalia, that the best way to understand congressional intent is to look at the text Congress was able to get through the legislative process."


Profs. Adler and Gluck then ruminate on what happens next, asserting that,  despite this reckless ruling,  the ACA is likely to continue in place while the case moves to the higher courts.   They predict that  the appeal will almost certainly end up in the Fifth Circuit — the federal appellate court that presides over Texas-  with California and other states defending it.   The Dem-controlled  House of Representatives will also likely join the lawsuit, and I would not exclude the possibility of Reed O'Connor being subpoenaed  before the House Judiciary Committee to answer questions on his decision.  It's possible!

If the Fifth Circuit reverses Renegade Reed O’Connor, the authors think it unlikely the Supreme Court will take the case.  Why would they when the Supremes already supported the law (including the mandate)  back in 2012?  If the Fifth Circuit upholds the ruling, possible with two new activist justices (Gorsuch and Kavanagh) the authors are skeptical a majority of the  highest court would sustain this weak analysis.  Besides, it would roil the insurance markets and whole health care system as 20 million Americans would lose their health care, while premiums could rise as much as 25 percent for others, according to the analysis on CBS Early Show this a.m. by financial specialist Jill Schlesinger.

On the other hand, as Ms. Schlesinger pointed out, this ruling doesn't change anything for your coverage during 2019 IF you already enrolled.  She also added, for those who haven't decided whether or not to enroll yet:

"If you are considering this, don't listen to this and say 'oh, I shouldn't enroll'. You absolutely should enroll, and again, your coverage will be intact for 2019."
Let's also note, as the  law profs have, that Chief Justice John Roberts is sensitive to allowing the court to be an instrument of politics, particularly when doing so violates separation of powers. Justice Brett Kavanaugh is an expert on statutory interpretation who has previously said that courts should “sever an offending provision from the statute to the narrowest extent possible unless Congress has indicated otherwise in the text of the statute.”

Hell, even the least qualified supreme, Clarence Thomas,  has opined that the kind of hypothesizing on which O’Connor relied is inappropriate:.  Congress’s intentions “do not count,” he wrote earlier this year, unless they are “enshrined” in a text that made it through the “constitutional processes of bicameralism and presentment”.

Even the reactionary WSJ editorial writers agree that O'Connor blew it ('Texas ObamaCare Blunder', p. A16, today) noting  "this judge's ruling will be overturned and could backfire on Republicans" adding:

"When judging congressional intent, a  judge must account for the amending congress as well the original congress..... In any case, the Supreme Court's severability doctrine calls for restraint in declaring an entire law illegal merely because one part of it is"  

Whatever the outcome, this issue has already become a political nightmare for the 'pukes, -even forcing them to go on the campaign trail before the midterms and posture and lie about keeping the best parts of the ACA.  Of course, they were disingenuous to the core given most of these hypocrites had signed onto the lawsuit attacking the ACA even as they vowed to keep the most important provisions, such as allowing preexisting conditions.

And the Kaiser Family Foundation has since found in its latest poll that fully 65 percent of Americans believe "it's very important"  that insurers don't deny Americans coverage based on their health.

Another little aspect neglected: Repukes have yet to come up with a viable replacement for the ACA.  A key aspect they omit is that a mandate is needed for any feasible insurance plan, given that costs can only be controlled if the young and healthy are pooled with the old, sick and unhealthy..  But with no mandate and no penalty there is no reason for the young and healthy to comply.   Then insurers are stuck with a vastly sicker and more expensive consumer base.

In the end the Reeptards and this Reeptardo renegade judge are hoist on their own petards.  So is Dotard Donnie who bragged while lollygagging at Mar-a-lago how "great" this judge's decision is, and oh "we will now have a great health care system".   Sorry, fool, those are two contradictory notions. Given the country's skittishness concerning "socialized" single payer health care, Obamacare is the next best option and every manjack with an IQ over room temperature digits knows it.  Well, except Trump and his lackey judge in Texas.  As the WSJ editorial writers put it (ibid.): "Trump hailed the ruling in a tweet, but he has never understood the Affordable Care Act."

Begging the question: Does this fungal mutt fouling the Oval Office really understand anything?  I doubt it!

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by P.M. Carpenter | December 16, 2018 - 7:14am | permalink