The Prog Blog

Bush and Douglas’ Toxic Economic Legacies
Traven Leyshon October 10th, 2008

What emerges clearly in the wake of this fall’s stock market turmoil and credit paralysis is that we are in the throes of an historic financial meltdown because Wall Street, and the politicians in their service, gambled with our future. Families are struggling with a long-running economic squeeze, the totality of which is still unknown. Last week, we woke up to the news that in August, we lost another 159,000 jobs – 760,000 since the beginning of the year. That same day, it became clear that the taxpayers who took on the burden of bailing out Wall Street would not get extended unemployment benefits or a job-creating stimulus package – measures George Bush said he would veto. Nearly 50 million are without health care. In August alone, more than 300,000 Americans lost their homes to foreclosure. Families are worried about putting food on the table, putting gas in the tank and being able to retire with the security that few feel these days.

The burst of the housing bubble has left the financial markets sitting on trillions of dollars of essentially fictitious value. There is no rational purpose served by pretending that either those homes or the mortgages on them held by the banks, let alone the “derivatives” based on packing and re-selling them, are worth what their paper value says. A proper rescue program would begin with an immediate ban on foreclosures, followed by the government taking over and rewriting those mortgages to reflect the actual value of those properties – i.e. a 30-40% writeoff of their fictional paper values at the height of the housing bubble – and then putting a ceiling on families’ monthly payments at something like 10-12% of household income.

Among other virtues, such a program would not only keep people in their homes but also, by reducing their payments, serve as a more effective economic stimulus than those one-time Treasury checks.

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Posted in General, Economic Development | No Comments »

Hope for Homeowners, Not Bailout for Bankers
Thomas Hermann October 10th, 2008

At first my opponent in this election, Congressman Peter Welch, joined a majority of Congress in voting down the $700 billion corporate bailout on Monday, September 29.

Welch’s vote followed an outpouring of calls opposed to bailing out the corporate crooks. A national poll showed only 7% of voters thought the government should use taxpayer funds to keep a large financial institution solvent.

Welch’s statement, published in the Burlington Free Press on September 30, correctly explained that under the bailout bill, “total responsibility for this crisis is transferred to the middle class.” He condemned the bailout as “rewarding speculation, market manipulation, and corporate self-dealing.” He properly called for making Wall Street pay for its own excesses with “a small transaction fee on security trades.”
But then Peter Welch caved.

On October 3, Welch voted for an even more expensive corporate bailout that rewards speculators by having the government buy now worthless mortgages. But the bailout does nothing to protect homeowners in danger of losing their homes.
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Posted in General, Economic Development, National | 1 Comment »

Irony and Hypocricy
Doug Hoffer October 8th, 2008

In Sunday’s Free Press article about the pro Wal-Mart rally in St. Albans, Jim Douglas is quoted as saying “It’s time for the opinions of the few to stop obstructing the needs of the many”.

This is rich. Hey Jim,
What about your opposition to meaningful health care reform?
What about your opposition to a fully funded all fuels efficiency program?
What about your opposition to the purchase of the Conn. River dams?
What about your opposition to closing the 40% capital gains exclusion unless it protects most of your wealthy friends (i.e., lower top marginal rates, loopholes, etc.)?

Yup. He’s a real champion of the masses.

Posted in Economic Development | No Comments »

The Douglas Signing Statement
Rep. Sandy Haas October 7th, 2008

We’ve all heard about how President Bush uses a “signing statement” to nullify his approval of certain bills passed by Congress. Rather than veto a bill he dislikes, Bush just writes a letter saying essentially “I don’t intend to follow this new law.”

What is less well known is that our current Vermont governor does the same thing. Every year legislators return to the Statehouse in January to discover that laws we labored over carefully have simply been ignored by the administration. The excuses vary. Sometimes they tell us that we haven’t given them enough money to do the job (even though in formal testimony, they had insisted that the law would not require any additional appropriation). Other times they claim that we must have been confused and could not have meant what we said.

We encountered this practice last spring as we inquired about the Governor’s infamous 400 cuts to state jobs. Asked the methodology for choosing which positions to eliminate, one agency head told us that they began with positions that had been created by recent legislation, but not yet filled. In other words, prior decisions to set up special desks to handle unmet needs were summarily reversed.

Most recently, the Corrections Oversight Committee learned that the administration had chosen to ignore a significant element of the Justice Reinvestment bill passed in May. Act 179 was the culmination of years of work, first by a task force involving all three branches of state government (legislature, administration and judiciary) and then months of work by several committees and working groups in both the House and Senate (again working hand-in-hand with both the administration and the judiciary). The best-known element of Act 179 is the plan to close the Dale prison in Waterbury, move all women inmates to St. Albans, and reopen the Windsor prison as a therapeutic work camp for men. But the act has an equally important and more modest section providing that the capacity of community services be beefed up and paid for with savings known to be available from the offset in unneeded incarceration. That section expressly called for implementation beginning July 1, 2008, but the administration just refused to do it. After a major confrontation with the Corrections Oversight Committee, the administration has reluctantly agreed to move forward and implement this section of the law. Sadly, we have already lost a quarter of the fiscal year so the legislative purpose has already been undermined.

As Governor Douglas travels around the state snipping ribbons and making points by his recall of everyone’s name, his finance people are quietly gutting the good policy decisions made by the legislature and formally approved by the Governor.

Posted in General | 1 Comment »

Privatizing water
Elizabeth Skarie October 2nd, 2008

T. Boone Pickens has been airing some interesting ads lately. I was kind of impressed by them until I read a column in, of all places, USA TODAY (Sept. 17, 2008). The author, Julene Bair, notes that this Texas billionaire, who made much of his fortune trafficking in fossil fuels, will now cash in on natural gas (a commodity he is heavily invested in) and wind energy generated on his 200,000 acre wind farm. More alarmingly, she reports that he intends to market “fossil water—finite supplies of water dating to prehistoric times”. The Ogallala Aquifer, running from North Texas to South Dakota, is the largest such supply on our continent.

Pickens has gained such powerful control over the Texas legislature, according to Bair, that he has gotten “his people” in charge of the local water board and can legally force landowners to sell him rights to a strip of land he can then use to transport water taken from the aquifer, 65 billion gallons a year if he gets his way. Additionally, the author notes that Plains farmers are now pumping 6.2 trillion gallons a year to irrigate field corn and other “thirsty” crops to sell for ethanol production, when crops such as winter wheat could be grown in this area without irrigation.

The world’s population is increasing, global warming– with likely droughts–is upon us and we are subsidizing farmers to waste water to grow a food crop that we then burn for fuel? This sounds like another example of failure to regulate and greed run rampant. As the author concludes, “We must recognize our planetary limits and harmful environmental practices. Otherwise, drought and famine will adjust our numbers for us.”

Posted in Environment | No Comments »

Anthony Pollina & The VPT Gubernatorial Debate
Peggy Sapphire October 1st, 2008

Anthony Pollina’s power & clarity, as evidenced tonight, derives from his long-standing advocacy for the People of Vermont. Anthony’s immediate, forthright, jargon-free responses distinguished him, once again. He is the gubernatorial candidate with the understanding , compassion & grasp of the urgency needed to transform Montpelier from the insider’s-game it has become, to the People’s Statehouse.

Neither Douglas nor Symington’s responses carried resonance (or endorsement) with the People: working people, state workers, teachers, native americans, etc. Douglas/Symington reveal beyond doubt that they are party-first people-last candidates. Nothing could have more clear in tonight’s debate, which I believe, accounts for the fact that Douglas/Symington chose not to refer to Anthony or his well-articulated, detailed positions. How disrespectful and disdainful, how foolish to underestimate the power of the People and their candidate: Anthony Pollina. Anthony’s right: if the People turn out to vote, he CAN WIN and rescue our state from partisan, corporate, big-business politicians.

Posted in General | No Comments »

Burlington sets emissions reduction goals
Mayor Bob Kiss October 1st, 2008

The City of Burlington is in the process of rewriting and updating its Climate Action Plan, first developed in 2000. The update will include new strategies and goals for the City to reduce its own carbon footprint and to encourage the entire community to do the same. You can learn more about the City’s efforts at http://www.cedo.ci.burlington.vt.us/legacy/cap.html, which includes the opportunity for Burlington residents to get involved in the rewrite. As Mayor I’ve set a goal of a 20 percent reduction of Burlington’s greenhouse gas emissions by 2020 and an 80% reduction by 2050.

As part of the process the City has reviewed its own carbon emissions based on energy use. This gives us a reference point to determine whether, in the future, we’re meeting our climate action goals. When Burlington’s first Climate Action Plan was developed, we could not determine our emissions level as accurately as we can now, using software from ICLEI-Local Governments for Sustainability.

Burlington has been recognized nationally for its climate action efforts. Leading up to this most recent effort the City established an Energy and Environmental Coordinating Committee (E2C2), which includes City residents, and dedicated a staff person within the City’s Legacy Project to pursue environmental sustainability. A significant goal of the current work is to engage as many residents and stakeholders in the process as possible. Meeting our goals will require a serious and concerted community response over the next decade.

Posted in General | 1 Comment »

Rethinking VEPC
Doug Hoffer September 30th, 2008

The Free Press reported last week that the Lydall will close its St. Johnsbury plant due to a slowdown in the auto industry. As a result, 190 jobs will be lost. We can only hope the dislocated workers find new employment.

But this unfortunate incident illustrates a fatal flaw in the state’s main “tax incentive” program. Lydall was awarded $362,000 in tax credits by VEPC over the years. We have no idea whether the job growth during that period would have occurred “but for” the incentives. More importantly, the money spent (foregone tax revenues) is now gone and we have nothing to show for it. [Note: VEPC’s “clawback” provisions have not been very successful.]

Tax incentives are not long-term investments of public funds (like infrastructure, housing, or job training). When market forces lead companies to cut back or close, taxpayers are left with no assets to build on for the future. Isn’t it (finally) time to rethink this?

Posted in Economic Development | 1 Comment »

Do it for Vermont, Gaye
Todd Tyson September 29th, 2008

Campaign season here in VT is fully underway with several gubernatorial debates already logged in, weekly polls cranking out and yard signs sprouting like late season dandelions. I have had several occasions to see Douglas, Symington and Pollina speak publicly about their accomplishments and visions for our state during these financially strapped times. I have also gathered feedback from “locals” here in central VT from many political backgrounds who feel that Gaye Symington’s efforts as House Speaker for 4 years and now on the stump are anemic at best…Does she really want this job? Many folks feel that the statewide Democratic leadership recruited Gaye as their ‘08 candidate with an emphasis on 2010 when Gentleman Jim is expected to step down and head back to Middlebury. This is an honorable sacrifice by Gaye, but a cynical sell-out of the majority of voters (Democrats, Independents and Progressives) who desire real change now when we really need it.

In the ‘02. ‘04 and ‘06 gubernatorial races….the Dems were unable to unseat Douglass one on one. Even if this year’s race gets thrown to the legislature, and if Douglass holds more than a 4% lead over his closest challenger…then the House should vote to give him another term. There does exist an unprecedented political option in light of Gaye’s fading support from grassroots voters and statewide unions…fold your tattered tent, head home and leave Vermont’s electorate with a clearly defined choice between the status quo of the Douglass administration and the sweeping changes to be effected by a Pollina administration in the areas of infrastructure, agriculture policy and renewable energy development.

Posted in General | 7 Comments »

Trying to understand the bailout
Rep. Chris Pearson September 22nd, 2008

To me, it seems like folks who made tons of money selling questionable loans are getting a handout while us folks are left holding the bill and out on the street. But what do I know? Our old friend David Sirota has his take:

Since the deregulatory splurge of the 1990s began, the financial industry has donated almost $600 million to both parties—splitting their donations almost 50-50. That includes an astounding $9.8 million to Democratic presidential nominee Barack Obama, and $6.8 million to Republican nominee John McCain. On top of that is another $500 million dollars in lobbying expenditures in the last decade.

Thanks to the proposal’s omissions, those expenditures could generate a $700 billion return on worthless mortgage investments—well above the 100-to-1 ratio of return on investment that lobbying expenditures typically reap corporate clients in Washington. Alas, in the Halliburton age, such government-corporate profiteering would be anything but rare.

Re