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Tuesday, March 19, 2019
Saturday, March 16, 2019
Bernie Can Win
Bernie may win. Today is the first day I believe that. Three things converged to change my stance from longtime supporter to believer in the possibility of victory. My longtime support comes from Senator Sanders', then Mayor of Burlington, strong friendship with my union in the early 80s. But, even through 2016, while his strength surged beyond anyone's expectations, actual victory seemed a remote thing, and support for Bernie's message did not equate with any lack of enthusiasm on my part for Clinton's campaign against Trump.
But of course Trumps campaign was the other unexpected surge. A surge that revealed the deep sickness that has overtaken US society, driven and aggravated by the astounding rise in social and economic inequality, both nationally and globally.
The three things:
1. Bernie's campaign has decidedly broadened its base and leadership into a rainbow coalition -- social democratic alliance. In Washington talk his campaign is grabbing his 'left' and millenial base and bringing in the grassroots and some elected officials from the Obama coalition.
The 'color' of the audiences attending the rallies is looking very rainbow,I can count. The elements of this emerging coalition add up to a MAJORITY of the working classes, men and women, and of nationally and racially victimized communities.
2.From the Green New Deal to Medicare for All, to Ending Endless Wars, to cleaning our government and democracy of the corruptions that led to Trump -- It will take more than electing a president, and supportive Congress (but AT LEAST that), to match the concentrated power of the enemies of these ideals. A lifetime of experience in the labor movement and the study of revolutions tells me: Do not ever believe a ruling class will surrender its power and wealth simply to a VOTE. Bernie now frames his agenda focused on the theme of JUSTICE -- perhaps another sign he has been re-reading Dr. King. He used is last time too and he has always used "economic justice" in his campaigns, but there seems to be a thematic shift this time -- and itts powerful. The many wounds inflicted over the decades since austerity began have taken a vast toll. It will take an active movement, a revolutionary one in the sense that -- like Dr King --- real mass participation, even sacrifice, will be required. Bernie is telling the truth about this, too, about what the people must face, and do themselves. His political intuition, always extraordinary on the left, IMO, is still improving. The new campaign is more professional. And he is still outdrawing everyone. He can win. And he would bring a movement as powerful as Roosevelt's with him. That gives his program -- which is similar on the surface with some other presidential candidates -- the sense of credibility and potential real power that the same words absent the "movement" cannot sustain.
3.. The centrist position is collapsing. I think Bloomberg's withdrawal was my first strong sense of this. This is a new feature. Brad DeLong (himself a centrist) said it best -- the liberal stance "is collapsing because it needs at least some rational partners in the 'conservative' party to achieve legislative wins. And there are no partners". The Marxist in me argues the political divides are also likely a feature of the class divides that have become bottomless chasms in US society. Middle ground is now becoming the ground of feet planted firmly in mid air.
Trump is becoming, against his own intentions, Sanders biggest ally. Most of his tweets now are focused on painting all Democrats as just fronts for "socialists" like Sanders and Alexandria Ortiz-Cortez. Yet Every day he also proves, however, that "compromises", or "deals" with barely disguised gangsterism is both impossible and foolish. The rich always think in their "gut" that red-baiting marginalizes the target. That has been the case in past history. But it only works politically if there is a center alternative. In this case IF Trump and his captive Rs tell the public that the only alternative to him/them is Sanders, or an equivalent, and IF Sanders "movement" keeps doing what its doing --- Bernie can Win. The people are not stupid.
Harpers Ferry, WV
Friday, March 15, 2019
Conflicts of interest [feedly]
http://understandingsociety.blogspot.com/2019/03/conflicts-of-interest.html
Marc Rodwin's Conflicts of Interest and the Future of Medicine: The United States, France, and Japan is a rigorous and fair treatment of this issue with respect to conflicts of interest in the field of medicine. Rodwin has published extensively on this topic, and the current book is an important exploration of how professional ethics, individual interest, and business and professional institutions intersect to influence practitioner behavior in this field. The institutional actors in this story include the pharmaceutical companies and medical device manufacturers, insurers, hospitals and physician partnerships, and legislators and regulators. Rodwin shows in detail how differences in insurance policies, physician reimbursement policies, and gifts and benefits from health-related businesses to physicians contribute to an institutional environment where the physician's choices are all too easily influenced by considerations other than the best health outcomes of the patient. Rodwin finds that the institutional setting for health economics is different in the US, France, and Japan, and that these differences lead to differences in physician behavior.
Here is Rodwin's clear statement of the material situation that creates the possibility or likelihood of conflicts of interest in medicine.
Physicians earn their living through their medical work and so may practice in ways that enhance their income rather than the interests of patients. Moreover, when physicians prescribe drugs, devices, and treatments and choose who supplies these or refer patients to other providers, they affect the fortunes of third parties. As a result, providers, suppliers, and insurers try to influence physicians' clinical decisions for their own benefit. Thus, at the core of doctoring lies tension between self-interest and faithful service to patients and the public. The prevailing powerful medical ethos does influence physicians. Still, there is conflict between professional ethics and financial incentives. (kl 251)Jerome Kassirer is a former editor-in-chief of the New England Journal of Medicine, and an expert observer of the field, and he provided a foreword to the book. Kassirer describes the current situation in the medical economy in these terms, drawing on his own synthesis of recent research and journalism:
Professionalism had been steadily eroded by complex financial ties between practicing physicians and academic physicians on the one hand and the pharmaceutical, medical device, and biotechnology industries on the other. These financial ties were deep and wide: they threatened to bias the clinical research on which physicians relied to care for the sick, and they permeated nearly every aspect of medical care. Physicians were accepting gifts, taking free trips, serving on companies' speakers' bureaus, signing their names to articles written for them by industry-paid ghostwriters, and engaging in research that endangered patient care. (kl 73)The fundamental problem posed by Rodwin's book is this set of questions:
In what context can physicians be trusted to act in their patients' interests? How can medical practice be organized to minimize physicians' conflicts of interest? How can society promote what is best in medical professionalism? What roles should physicians and organized medicine play in the medical economy? What roles should insurers, the state, and markets play in medical care? (kl 267)The book sheds light on dozens of institutional arrangements that create the likelihood of conflicted choices, or that reduce that likelihood. One of those arrangements is the question for a non-profit hospital of whether the physicians are employed with a fixed salary or work on a fee-for-service basis. The latter system gives the physician a very different set of financial interests, including the possibility of making clinical choices that increase revenues to the physician or his or her group practice.
Consider physicians employed as public servants in public hospitals. Typically, they receive a fixed salary set by rank, enjoy tenure, and have clinical discretion. As a result, they lack financial incentives that bias their choices and have clinical freedom. Such arrangements preclude employment conflicts of interest. But relax some of these conditions and employers can compromise medical practice.... Furthermore, emplloyers can manage physicians to promote the organization's goals. As a result, employed physicians might practice in ways that promote their employer's over their patients' interests. (kl 445)And the disadvantages for the patient of the self-employed physician are also important:
Payment can encourage physicians to supply more, less, or different kinds of services, or to refer to particular providers. Each form of payment has some bias, but some compromise clinical decisions more than others do. (kl 445)Plainly, the circumstances and economic institutions described here are relevant to many other occupations as well. Scientists, policymakers, regulators, professors, and accountants all face similar circumstances -- though the financial stakes in medicine are particularly high. (Here is an earlier post on corporate efforts to influence scientific research; link.)
Each country's laws, insurance, and medical institutions shape medical practice; and within each country, different forms of practice affect clinical choices. (kl 218)
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Bargaining for the Common Good Comes of Age [feedly]
https://workingclassstudies.wordpress.com/2019/03/11/bargaining-for-the-common-good-comes-of-age/
The week-long strike by the United Teachers of Los Angeles (UTLA) in January 2019 marked the most significant struggle yet in a movement by teachers and other public-sector workers called Bargaining for the Common Good. By striking over a long list of community-generated demands and with the support of a dense network of allies, LA teachers moved bargaining away from the union-versus-taxpayer framework into which public employers routinely push such conflicts. Instead UTLA made itself the spearhead of an effort to reshape LA's priorities around a common good agenda. Drawing on several years of experimentation by public-sector unions around the country, and coming hard on the heels of the #RedforEd teachers uprisings of 2018, the LA strike illuminated a significant shift in union strategies, one that holds profound implications for the future of organized labor and the relationship of unions to working-class communities.
Judged by the "pure-and-simple" union standards of a generation ago, the UTLA strike might have been deemed a failure because it did not add a penny to the six-percent raise the LA school board had offered teachers prior to the walkout. But the strike was anything but a failure. The union fought over issues that went far beyond salaries, issues at the heart of public education and its centrality to the aspirations of working-class Angelenos.
The teachers won commitments from the school district to reduce class sizes by four students by 2021, increase investment in the schools, hire school nurses and full-time librarians, reduce standardized testing and random searches of students, and launch a dedicated hot-line for immigrant families who need legal assistance. Many of these demands were crafted with allies like the Association of Californians for Community Empowerment (ACCE), and they explicitly challenged the austerity agenda of LA school superintendent Austin Beutner, a wealthy philanthropist and former investment banker who was installed by the LA school board in 2018 despite having no prior experience in education.
The UTLA strike was the most recent iteration in a string of post-Great-Recession public-sector union battles that have consciously attempted to rethink the participants, processes, and purposes of collective bargaining. If mid-twentieth-century collective bargaining was binary, involving only employers and unions, more recent efforts have sought to give community stakeholders a voice at the bargaining table. If traditional bargaining was done behind closed doors and focused on issues like salary, these fights have been waged in public around broader demands. And if traditional bargaining concluded with signed contracts and the demobilization of the union's membership, these efforts have made bargaining one step in an ongoing strategy of worker and community empowerment.
This approach can be traced back to the depths of the Great Recession, when President Barack Obama's agenda became mired in the politics of austerity and Tea Party activism was installing antiunion Republican governors like Wisconsin's Scott Walker and tightening the grip of austerity on all levels of government. In that toxic environment, some public-sector unions began to realize they could no longer do business as usual.
That realization helped elect Karen Lewis and her Caucus of Rank-and-File Educators slate to leadership of the Chicago Teachers Union (CTU) in 2010. Lewis and her colleagues immediately challenged the austerity agenda that had been forced upon Chicago schools by aligning the union's fight with the interests of community allies. Calling for smaller class sizes, improved facilities, and a host of other demands that went beyond wages and other narrowly defined work issues, the CTU staged a precedent-setting strike in 2012, vilifying Rahm Emanuel as "Mayor One Percent."
The CTU's success was soon replicated by the St. Paul Federation of Teachers (SPFT) in 2013. It patiently built an alliance with parents and community groups, with whom it drew up twenty-nine bargaining demands, including one insisting that the school district cease doing business with banks that foreclose on their students' families. After rallying broad community support, the St. Paul teachers won most of what they sought. "I had negotiated almost a dozen previous contracts for the SPFT," explained Mary Cathryn Ricker, the union's leader. "But, for the first time, I felt that signing a contract was just one step in building a larger movement."
A new strategy of alliance-based bargaining emerged from these campaigns. By May 2014, when many of its practitioners convened to compare notes at Georgetown University, the strategy had a name: Bargaining for the Common Good. Soon it spread beyond teachers' unions. In 2014, a coalition of unions and community allies launched Fix LA, an effort to break the grip of austerity politics on the city's municipal services. That coalition exposed the fact that Los Angeles spent more taxpayer money paying fees to the Wall Street firms that marketed municipal bonds than it spent maintaining the city's streets. Fix LA demanded that the city use its $106 billion worth of assets, payments, and debt issuance as leverage to "demand better deals with Wall Street," which would allow taxpayer money to be invested in the community and not transferred to wealthy bankers.
While these campaigns were carefully planned, their groundwork laid months if not years in advance, the teacher uprising of 2018 showed that common good bargaining was also adaptable on the fly—even in states where collective bargaining isn't allowed. In a shutdown that closed all 55 of West Virginia's school districts in January 2018, teachers first denounced tax policies that allowed the state's richest citizens to evade paying their fair share and then refused to return to work until other state employees won the same wage increase they were offered. Soon thereafter, Oklahoma teachers protested the state's failure to fairly tax wealthy oil and gas interests, and Arizona teachers demanded that the state enact no further tax cuts until its per-pupil spending on education reached the national average.
In some ways Bargaining for the Common Good harkens back to the origins of teacher unionism and figures like Margaret Haley, leader of the Chicago Teachers Federation at the dawn of the twentieth century. She crusaded against corporate tax dodgers who collected public subsidies at the same time Chicago was, as Haley put it, "closing the schools, cutting the teachers' salaries, increasing the number of children in each room, and otherwise crippling the service for want of money!"
Yet if it borrows from labor's past, Bargaining for the Common Good also represents a creative adaptation to the needs of workers and communities under twenty-first century capitalism. Financialization, privatization, increasing inequality, and, most recently, judicial attacks on unions' ability to collect fees from the workers they represent, which culminated in the Supreme Court's 2018 Janus v. AFSCME decision, have undermined traditional bargaining. Bargaining for the Common Good responds to these changes by recasting unions as defenders not only of their members but the community's very well being. "In bargaining for the common good, we see great possibilities for a style of campaign that puts forward a vision for the city as well as for the schools," UTLA president Alex Caputo-Pearl explains.
By reframing collective bargaining as a community endeavor advancing broad demands that transcend the narrow wage-hour-and-working-condition economism the predominated in the twentieth century, the Bargaining for the Common Good movement is helping us imagine a revived twenty-first century labor movement. As teacher unionism continues to boil in recent days—from Oakland, California, to Jefferson County, Kentucky—a common good agenda that unites public workers with the communities they serve is taking clearer shape, and inhibitions against striking that long held workers in check are dissipating. More workers struck in 2018 than in any year since 1983.
Many worried that the Janus decision would be the final blow to the labor movement, but a new community-centered organizing model suggests otherwise. Not only are unions weathering Janus, they are beginning to find their voice—a voice that has too long remained silent. Not a moment too soon.
Joseph A. McCartin
Joseph A. McCartin is Executive Director of the Kalmanovitz Initiative for Labor & the Working Poor at Georgetown University.
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The influence of centrist Democrats is fading fast. What does that mean for liberal technocrats? [feedly]
https://www.washingtonpost.com/outlook/2019/03/05/influence-centrist-democrats-is-fading-fast-what-does-that-mean-liberal-technocrats/
It seems Brother Bernstein is not leaning toward his old boss....
To state the obvious, the policy agenda of the Democratic Party has moved to the left. Ideas that used to be on the fringe — Medicare-for-all, guaranteed jobs and the Green New Deal, all financed by very progressive taxation — are now much more widely accepted by Democrats.
Two possible theories explain this evolution: the old one from the center-left and the new one from the "leftier" left. The center left was/is essentially friendly, and largely deferential, to markets. Left to their own devices, financial markets will efficiently allocate excess savings to their most productive uses — so over-regulation is dangerous. Same with globalization. Taxes should be progressive, but not too much so or you'll dampen private investment. Public borrowing crowds out private borrowing, so deficit reduction is an oft-stated goal.
That sounds pretty Republican (or it did before Republicans went nuts). But there are two salient differences. One is that under center-left Democrats, you let the market rip, but you shave some gains off the top and redistribute them to those left behind, say through a robust Earned Income Tax Credit, the highly successful pro-work, anti-poverty wage subsidy that was expanded under President Bill Clinton. The second is that, in rare cases, it is kosher to tweak incentives to achieve a policy goal. A carbon tax to push back on climate change is a good example. Better yet, a cap-and-trade approach, in which the government sets up a market — there's that word again — wherein firms can trade pollution credits.
The guiding principle is that the center-left policymaker has the technocratic skills to administer exactly the right tweaks and redistributions to ensure that markets continue to deliver optimal results.
Though this position still describes some Democrats, it is no longer the dominant view, as economist Brad DeLong recently showed in a Vox interview. DeLong, who calls himself a "Rubin Democrat" (a reference to Clinton's centrist treasury secretary, Bob Rubin), argues that the moment is such that "The baton rightly passes to our colleagues on our left. We are still here, but it is not our time to lead." "DeLong believes," according to the piece, that "the time of people like him running the Democratic Party has passed."
What changed to usher in this twilight of the technocrats? The limits of "unfettered" markets and under-regulated finance, and the risks of letting them rip, have become undeniably clear. Even before the finance-infused housing bubble delivered the Great Recession, market-driven inequalities soared to levels we hadn't seen since the 1920s.
Then there's the fact that markets weren't really "unfettered" (ergo, the scare quotes). Though their center-left proponents argued otherwise, trade deals were not for "free" trade. They were stacked to protect investors over workers and consumers (as Sen. Elizabeth Warren (D-Mass.) argued regarding the Trans-Pacific Partnership). Center-left policymakers didn't just leave financial markets alone; they actively deregulated them (see the repeal of Glass-Steagall banking regulations supported by Clinton in 1999). And when the labor unions came knocking for political support, the center-left too often wouldn't open the door (see the lack of support among moderate Democrats for the Employee Free Choice Act).
Next, center-left policies appeared insufficient to meet the challenges Democrats increasingly cared about, such as growing inequality, inaccessible health care, the cost of college, climate change, retirement insecurity and institutionalized racism. DeLong argues, with merit, that many of the center-left policies never got a chance because they depended on "a responsible center-right partner to succeed," and such support was never even close to forthcoming.
But as with the trade deals, the problem wasn't just political. Where center-left Democrats touted the need for "tough choices" on Social Security and Medicare (by which they meant, in part, cuts to benefits), the left wing of the party wanted to expand the programs, as is seen in today's prioritization of Social Security expansion and Medicare-for-all.
For all these reasons, this twilight of technocrats makes sense to me. But it raises the question: What's up in the morning? If the old left's theory has been proved wrong, what is its replacement?
The Democratic left's new theory of the case is still forming, but it looks something like this: Both parties have stood by while markets were rigged, and therefore, they — both markets and the old parties — cannot be counted on to solve the challenges listed above. We must de-rig them through antitrust action, robust labor standards, union power (as a counterbalance to capital's power) and trade deals that are handshakes between workers across borders, not investors. At the same time, we can very progressively tax accumulated wealth and use the proceeds to both provide opportunities for those who have been left behind and fight existential market failures — most importantly, climate change.
What does the cast-aside technocrat have to say about that? The knee-jerk response is that such intervention into the market pushes too far and will kill the goose that lays the golden eggs. But this response is unconvincing. Social democracies have long existed (e.g., Scandinavian countries) that go much further to protect their citizens and their environment, spending 10 percentage points more of their GDP through the public sector ($2.1 trillion a year, in our economy) than we do without paying a productivity price for it. Obviously, universal health coverage is achievable, as it exists in every other advanced economy, at a cost of 6 to 8 percent of GDP less than we spend.
The fact is, while opponents scream about the massive negative market responses to the progressive agenda — People will stop working! Investors will stop investing! Doctors won't take patients! — we don't know either what the actual agenda will look like, if it will ever get legislated, or, if it does, what its impact will be on the zillions of moving parts in our economy.
All we know is that in some fundamentally important ways, what we've been doing hasn't worked. DeLong's right. It's time to pass the baton.
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US Imposes Tariffs, and the 2018 Trade Deficit Rises: Lessons? [feedly]
http://conversableeconomist.blogspot.com/2019/03/us-imposes-tariffs-and-2018-trade.html
Last week, the US Department of Commerce announced the US trade figures for year-end 2018. After a year of President Trump's tariffs, the US trade deficit is larger in 2018 than it was in 2017. The bilateral US trade deficit with China is up, too. The government report notes:
For 2018, the goods and services deficit was $621.0 billion, up $68.8 billion from $552.3 billion in 2017. Exports were $2,500.0 billion in 2018, up $148.9 billion from 2017. Imports were $3,121.0 billion, up $217.7 billion from 2017. The 2018 increase in the goods and services deficit reflected an increase in the goods deficit of $83.8 billion, or 10.4 percent, to $891.3 billion and an increase in the services surplus of $15.0 billion, or 5.9 percent, to $270.2 billion. As a percentage of U.S. gross domestic product, the goods and services deficit was 3.0 percent in 2018, up from 2.8 percent in 2017. ... The deficit with China increased $43.6 billion to $419.2 billion in 2018. Exports decreased $9.6 billion to $120.3 billion and imports increased $34.0 billion to $539.5 billion.Thus, a fairly common situation arises. A politicians claims that a certain Problem has a certain Solution. But when the politician is elected and the Solution is tried, the Problem is either the same or worse. It is rare for any politician in this situation to reconsider their Solution. Instead, the usual approaches are to argue that an even bigger and longer dose of the Solution is needed, or that the Solution was somehow sabotaged by poor implementation and political opposition.
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Medicare for All is Doable; Most Americans Want It [feedly]
http://cepr.net/publications/op-eds-columns/medicare-for-all-is-doable-most-americans-want-it
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