Disconnect: Public Wants Cuts in Defense Spending; Democratic and Republican Leaders Don’t
By Matt Bewig | AllGov | July 23, 2012
Americans want a Peace Dividend, but their leaders won’t give it to them. Despite multiple polls showing broad support for cuts in U.S. defense spending, a sort of anti-democratic bipartisanship has emerged in Washington, where both Republicans and Democrats oppose such cuts, often vocally.
The most recent polling data on the issue, released last week by the Program for Public Consultation (PPC), in conjunction with the Center for Public Integrity and the Stimson Center, shows that Americans believe defense spending should shrink next year by a fifth to a sixth of its present size. Other polls released during 2012, including surveys by Gallup, Roper, and others, have been similar, although variations have occurred.
The issue has arisen this summer because, under a budget compromise reached last year between Democrats and Republicans, 10% across the board cuts are set to kick in at the beginning of 2013, which would give the Department of Defense a budget next year of $470 billion—an amount it got by on during the George W. Bush administration while the U.S. was fully engaged in both the Iraq and Afghanistan wars. Nevertheless, both Republicans and some Democrats in Congress oppose these spending reductions, and former Vice President Dick Cheney recently emerged to lobby Congress against them, joined by representatives of Lockheed Martin Corp., who warned of thousands of layoffs if the cuts occur.
Lockheed Martin, the largest arms merchant in the world, is eager to keep filling up from the taxpayers’ money spigot. With annual revenues of about $45 billion, it invests its profits in influence, especially in Washington, where since 1989 Lockheed has donated $23 million to political campaigns, spent $125 million on lobbying; received $20 million in earmarks; received 31 grants and 15,358 contracts from the federal government; and placed 257 of their people on 135 government advisory committees.
The economic impact of defense cuts, especially on jobs, is one of the main reasons otherwise moderate or liberal Democrats oppose defense cuts, reasoning that the recession-ravaged economy cannot sustain a significant spending cut. Yet according to the PPC poll the public, even when provided information about the possible economic consequences of defense spending reductions, still opts for them over cuts to domestic programs like Social Security, health care, or education. Further, people in congressional districts with high defense spending supported defense cuts as readily as those in other districts, although Democrats generally supported larger cuts than Republicans.
“The idea that Americans would want to keep total defense spending up so as to preserve local jobs is not supported by the data,” said PPC director Steven Kull. On average, Democrats supported a Pentagon cut of 22%, while Republicans wanted a cut of 12%.
Related articles
- Poll: 76% of Americans favor cutting military spending (alethonews.wordpress.com)
- Survey Finds Large Majorities In GOP Districts Support Reducing Military Spending (thinkprogress.org)
- House exceeds budget cap with huge defense spending bill (rawstory.com)
Solyndra scandal’s key players pay big bucks to attend Obama fundraiser
RT | July 24, 2012
US President Barack Obama shook hands with some of his wealthiest supporters Tuesday night at a fundraising shindig in San Francisco. Also on hand, though, was a matter the commander-in-chief just can’t seem to shake: his failed deal with Solyndra.
Around sixty patrons paid $35,800 a piece to attend a party in honor of President Obama this week, including a pair of gentlemen who have become central figures in an energy debacle that has haunted the Oval Office since last year. Among those in attendance were two key players in the Solyndra scandal.
President Obama touted Solyndra, a California solar-panel start-up, as an example of perfect American entrepreneurship early on in his presidency. Last year, however, the infant green energy company filed for bankruptcy, despite the president earlier approving a gigantic loan guarantee worth $535 million for the Silicon Valley start-up. The company had borrowed all but $8 million of the massive loan before calling it quits late last year, a move that prompted Obama’s opponents to ridicule the president over what some said was “a dubious investment” and even initiated an investigated by the FBI.
Nearly a year after Solyndra first filed for bankruptcy, the scandal took center stage again this week after Monday’s fundraiser funneled in donations from Matt Rogers, a former adviser at the Department of Energy that helped approve the loan as part of the stimulus plan, and Steve Westly, a venture capitalist that warned the White House against offering a deal to Solyndra before the president offered his own endorsement. Darren Samuelsohn of Politico was on-hand at Monday’s fundraiser and writes that it appears that the president isn’t exactly distancing himself from one of the most costly scandals of his administration.
Officials within the campaign to elect Massachusetts Governor Mitt Romney for president have already attacked the administration for still maintaining ties with people privy to the Solyndra deal. In a statement addressing the latest news, Romney spokesman Ryan Williams writes, “The Obama Administration betrayed American taxpayers when it dumped hundreds of millions of public dollars into Solyndra while ignoring clear warnings about the company’s dire financial situation.”
“President Obama’s first term worked out well for his donors who got special access and taxpayer money for their failed ventures. It hasn’t worked as well for the 23 million Americans struggling for work in the worst economic recovery our country has ever had,” Williams adds.
Japan bans U.S. Osprey war planes over safety concerns
Tehran Times | July 24, 2012
Japan’s prime minister says that he will not allow the U.S. military to fly its newest transport aircraft in his country until safety concerns are first addressed.
Yoshihiko Noda told parliament on Tuesday that no flights of the MV-22 Osprey aircraft would be allowed to take place until investigations into two recent crashes were completed.
The crashes took place in April and June, and Japan says that it will not allow them to operate over its airspace and from its soil until the government is satisfied that safety checks have been completed.
The deployment of the MV-22s to a U.S. military base on the island of Okinawa has become a political headache for the Japanese government due to intense local opposition.
Okinawa hosts more than half of the roughly 50,000 U.S. troops in Japan. The deployment of the aircraft has become an issue for anti-U.S. protesters to rally around.
The first 12 Ospreys headed for Okinawa arrived in Japan on Monday.
The Osprey is a hybrid aircraft with rotors that allow it to take off like a helicopter and engines that can tilt forward, enabling it to fly like an airplane at higher speed than helicopters.
The aircraft’s development was plagued with issues in its early years in the 1990s, but U.S. officials say the technical glitches have been cleared up.
It is used by the U.S. marines, primarily as a troop transport aircraft, allowing soldiers on the ground greater range than current transport helicopters offer.
EU turns down Israel call to put Hezbollah on terror list
Press TV – July 24, 2012
The European Union has flatly rejected an Israeli call to blacklist Hezbollah as a terrorist group, saying there is no such agreement among the bloc’s member states.
“There is no consensus for putting Hezbollah on the list of terrorist organizations,” Cypriot Foreign Minister Erato Kozakou-Marcoullis, whose country currently holds the rotating EU presidency, said on Tuesday.
Israel’s hawkish Foreign Minister Avigdor Lieberman made the request for blacklisting the Lebanese resistance movement while sitting alongside the Cypriot minister at a news conference held after annual EU-Israel talks.
“The time has come to put Hezbollah on the terrorist list of Europe,” Lieberman urged. “It would give the right signal to the international community and the Israeli people.”
But Kozakou-Marcoullis highlighted Hezbollah’s active role as a political party, stating that the EU would consider the move if there were tangible evidence of Hezbollah engaging in acts of terror.
Lieberman’s call comes days after the sixth anniversary of Israel’s war against Lebanon in July 2006, a 33-day conflict which ended in Hezbollah’s victory and heavy losses on the Israeli side.
This raised serious questions about Tel Aviv’s long-boasted military capabilities and forced several Israeli commanders to resign over their poor handling of the war.
Related articles
- J’lem begins campaign to out Iran, Hezbollah as terrorists – Jerusalem Post (jpost.com)
- Why the Buenos Aires Bombing is a False Indicator on Burgas (alethonews.wordpress.com)
- EU to Upgrade Relations With Israel (alethonews.wordpress.com)
Raising the Minimum Wage Is Cheap and Easy
By Dean Baker | opednews.com | July 24, 2012
There are some policies that are pretty much no-brainers. We all agree that the Food and Drug Administration should keep dangerous drugs off the market. We all agree that the government should provide police and fire protection. And, we pretty much all agree that workers should be able to count on at least some minimal pay for a day’s work.
The minimum wage is non-controversial. The vast majority of people across the political spectrum support the minimum wage. In fact, one of the big accomplishments of the Gingrich Congress in 1996 was a 22 percent increase in the minimum wage. The only real issue is how high it should be. There are good reasons for believing that the minimum wage should be considerably higher than it is today.
At the current rate of $7.25 an hour, a full-time year-round worker would have gross pay of less than $15,000 a year. This is less than half of what the average Fortune 500 CEO makes in a day. It would be hard enough for a single person to survive on this income, imagine trying to support a child or even two on this money. And, close to 40 percent of the workers who would be benefited by a minimum wage increase have kids.
The counter-argument against raising the minimum wage is that it would actually hurt the people we are trying to help by reducing employment. There is little basis for this claim. The impact of the minimum wage on employment is one of the most heavily researched topics in economics.
Most recent research finds that it has no impact on employment. Even the research that finds job loss shows that the effect is small, suggesting that a 20 percent increase in the minimum wage may reduce employment of young people by around 2 to 3 percent.
While it’s not desirable to see anyone lose their job, it is important to remember the character of these jobs. They tend to be high turnover jobs that people leave after working relatively short periods of time. Job loss in this context is not likely to mean people being fired, rather it means that firms might be somewhat slower to hire. This would cause a typical low-wage worker to spend somewhat longer between jobs.
The dollars and cents might mean, for example, that a typical low wage worker ends up working 2 percent fewer hours in a year, but they take home 20 percent more pay for each hour that they work. This nets out to an increase in pay of 18 percent, a deal that most workers would likely consider pretty good.
In terms of whether we can afford a higher minimum wage, it is worth remembering that the minimum wage in 1968 would be almost $9.22 an hour in today’s dollars. In spite of the high minimum wage in the late 1960s, the job creators of that period pushed the unemployment rate down to 3.0 percent.
And, the country has not gotten poorer in the last four and a half decades. We have policy wonks running around Washington who seem to think that cell phones, computers, the Internet, and all other innovations of the past four decades that we now take for granted have reduced our standard of living.
This is of course nonsense. Productivity has increased by more than 120 percent since the late 1960s. If the minimum wage had kept step with productivity growth and inflation it would be over $20 an hour today.
The real problem in our economy today is not a lack of productivity. The problem is that the gains from productivity growth have not been broadly shared. The wealthy have used their power to rig the deck so that most of the benefits of growth have gone those at the top. They have used their control of trade policy, the Federal Reserve Board, and more recently the Wall Street bailout, to ensure that those at the top have gained at the expense of everyone else.
A higher minimum wage is an important step toward reversing this rigging. It should not be too much to expect that workers today should get at least as much as they did 45 years ago, and perhaps some dividend to allow them to share in the benefits of economic growth over this period. A minimum wage of $10 an hour would be a big step in the right direction.
Dr. Dean Baker is a macroeconomist and Co-Director of the Center for Economic and Policy Research in Washington, D.C.
Related articles
- Want a Real Recovery? Raise the Minimum Wage (bilerico.com)
- Large, Profitable Companies Employ Most Minimum-Wage Earners (thenation.com)
Britain’s ex-army commandos train armed rebels in Syria: UK media
Press TV – July 24, 2012
Britain’s former Special Air Service (SAS) commandos are reportedly training armed opposition groups fighting against the government of Syrian President Bashar al-Assad, reports say.
The Daily Mail and Sunday Express have revealed that the mercenaries have set up training camps in Iraq and on the Syrian border for the armed rebels.
British army sources, speaking on condition of anonymity, have said the militants are receiving instructions in military tactics, weapons handling and communications systems.
Groups of 50 militants at a time are being trained by two Mideast-based private security firms which employ former SAS personnel.
More than 300 rebel forces have completed the commando training program, and are said to account for a number of the opposition’s combatant units fighting Syrian security forces in Damascus.
Britain has also placed more than 600 troops on standby over the unrest in Syria.
UK Foreign Secretary William Hague says London should be acting outside the UN Security Council and step up its support for militant groups in Syria.
Syria has been the scene of violence by armed groups since March 2011.
Damascus blames “outlaws, saboteurs, and armed terrorist groups” for the unrest, asserting that it is being orchestrated from abroad.
