NEWS

Indents are usually quotes from the original article. Information in brackets [...] added for clarity. Additional information is left justified.
When possible, a link is provided to the original article.
The headline is the editor's and usually not the original headline for the news article. Opinions about the article are italicized.

Government spending cuts drive European countries into recession

From 2/19/12 The New York Times op-ed article by Paul Krugman

[I]n early 2010 austerity economics — the insistence that governments should slash spending even in the face of high unemployment — became all the rage in European capitals. The doctrine asserted that the direct negative effects of spending cuts on employment would be offset by changes in “confidence,” that savage spending cuts would lead to a surge in consumer and business spending, while nations failing to make such cuts would see capital flight and soaring interest rates. If this sounds to you like something Herbert Hoover might have said, you’re right: It does and he did.

Now the results are in — and they’re exactly what three generations’ worth of economic analysis and all the lessons of history should have told you would happen. The confidence fairy has failed to show up: none of the countries slashing spending have seen the predicted private-sector surge. Instead, the depressing effects of fiscal austerity have been reinforced by falling private spending.

Furthermore, bond markets keep refusing to cooperate. Even austerity’s star pupils, countries that, like Portugal and Ireland, have done everything that was demanded of them, still face sky-high borrowing costs. Why? Because spending cuts have deeply depressed their economies, undermining their tax bases to such an extent that the ratio of debt to G.D.P., the standard indicator of fiscal progress, is getting worse rather than better.

Meanwhile, countries that didn’t jump on the austerity train — most notably, Japan and the United States — continue to have very low borrowing costs, defying the dire predictions of fiscal hawks.

So what will it take to convince the Pain Caucus, the people on both sides of the Atlantic who insist that we can cut our way to prosperity, that they are wrong?

Republicans disappointed with Benishek

From 2/2/12 Traverse City Record Eagle article by Brian McGillivary

Republican Larry Inman, who chairs the Grand Traverse County Board of Commissioners, will consider challenging U.S. Rep. Dan Benishek, R-Crystal Falls, for the redrawn 1st Congressional District.

“They are sick of Benishek,” Inman said. “They said he’s arrogant, doesn’t spend any time in the district, isn’t accessible ... and they’re worried if he’s the Republican nominee we’ll lose the seat in November.”

Michigan League of Women Voters opposes voter suppression legislation

From 2/18/12 Michigan League of Women Voters website

The proposed effort to suppress voting in Michigan is part of a nation-wide push that relies on two falsehoods: (1) that voter fraud in the form of voter impersonation is rampant and (2) that every honest voter can easily produce a photo ID.

Voting law changes that passed the MI Senate on February 14 are "an attempt to suppress the vote either by making it harder for people to register to vote or by making it harder for them to vote at the polls," said LWVMI President Sue Smith in one of many, post-vote radio interviews.  The bills require MI voters to present photo ID when registering to vote and obtaining an absentee ballot in person.  Certification and training requirements for groups that register people to vote would also be required.  The bills now move to the House.

AARP opposed to Michigan voter suppression legislation

From 2/16/12 Bridge Magazine article by Mark Hornbeck

AARP Michigan opposes bills (Senate Bills 751 and 754) moving through the Legislature that will make it more difficult for many state residents to register to vote and to participate in elections.

Our State of Michigan senator, Republican John Moolenaar, voted for both these bills. No Democrat in the Michigan Senate voted for either.

Misogyne?

From 2/17/12 MDP e-mail by chairman Mark Brewer

This week:

• Congressman Darrell Issa refused to let any women testify during Congressional hearings on contraceptives, even denying one female by saying simply that she was "unqualified" to speak about the need for affordable family planning.
• GOP presidential candidate Rick Santorum believes states should have the right to ban the sale of contraceptives.
• Santorum Super PAC funder Foster Friess said women should put aspirin "between their knees" for birth control.
• As a GOP presidential candidate, Mitt Romney promised to defund Planned Parenthood and eliminate federal funding for birth control and cancer screenings.

Michigan business leaders upset about prison cost and reduced support for higher education

From 2/16/12 Bridge Magazine article by Derek Melot

Business Leaders for Michigan, a group formerly known as Detroit Renaissance, is a major player in how state policy is shaped in Lansing these days. So when it takes a stance, it’s advisable to pay attention.

And BLM on Wednesday made an important statement about prison costs — in its bid to reinvent the state’s higher education policy.

The big headlines off of Wednesday’s events will be that BLM is proposing a new system by which the state invests more in universities that perform well on a series of identifiable metrics. As most Bridge readers know, Lansing in the era of Rick Snyder is all about metrics and dashboards. BLM’s proposal plays right to that atmosphere, advising the linkage of state aid dollars to graduation rates, student retention rates, R&D work and the like.

But what’s most interesting is how BLM is seeing beyond the higher education account to the state’s budget situation as a whole.

In a press release, BLM board member Patrick Doyle, who spends his days running Domino’s Pizza, stated, “This fiscal year, Michigan will spend 76 percent more general fund dollars on prisons than we will on universities. Our public universities are a major driver of Michigan’s economy yet we are spending more on prisons than we are to help a Michigan student go to college. This investment strategy is upside down if we want to attract business investment and good-paying jobs.”
 
That’s as direct a statement about how prison spending has distorted Michigan’s priorities as we at Bridge Magazine can recall from any large faction of the business community.

At a press event to unveil its strategy, BLM head Doug Rothwell said, “Michigan needs to get back to the commitment that it had for decades, as a top 10 state in support of higher education.”

Romney vows to bust unions

From 1/15/12 The Detroit News article by Marisa Shultz

"I've taken on union bosses before," Romney said before hundreds at a furniture manufacturer. "I'm happy to take them on again."

One business owner asked Romney to sign an executive order on Day 1 to end a provision that federal work be done by union labor. "You'll have that," Romney said.

Romney outlined his reforms against the unions if he should win the Oval Office: Require secret ballots, protect paychecks, guarantee the right to work, end favoritism in government contracts and uphold the rule of law.

Republicans pushing prison reform

From 2/14/12 Bridge Magazine article by Ron French

Prison reform — once considered a ticket out of office for politicians — is spreading around the country, and in some unlikely places. In many states, the efforts to reduce prison populations are being led by “law-and-order” Republicans.

High percentage of income in several 1st District counties comes from government

From 2/12/12 Bridge Magazine article by Derek Melot

A small Michigan subplot to the New York Times’ story about how opposition to government benefits programs appears to spike in areas where government benefits are most prevalent.

In 2010, Dan Benishek ran for — and won –Michigan’s 1st Congressional District, which then covered the U.P. and a good hunk of the northeastern quadrant of the Lower Peninsula. Benishek was identified as a Tea Party candidate, with the commensurate focus on curtailing government spending and fiscal responsibility.

Now look at this interactive map from the Times. The Michigan counties where income is most reliant on federal spending are counties in Benishek’s district. In fact, several counties in Benishek’s district derive a larger percentage of income from government than highly urbanized counties:

• Oscoda County– 44.86 percent
• Alcona County– 44.33 percent
• Roscommon County — 44.21 percent
• Gladwin County– 41.72 percent
• Ogemaw County– 40.87 percent
• Genesee County (Flint) — 31.28 percent
• Saginaw County– 29.05 percent
• Wayne County (Detroit) — 28.04 percent
• Kent County (Grand Rapids) — 18.05 percent
• National average — 17.6 percent

Some of this surely has to do with the aging of rural areas as young people leave in search of employment. The NY Times graphic includes Social Security and Medicare spending in its calculations. Yet, there are arguments in Washington,D.C., to curtail spending on Medicare and raise the retirement age for Social Security.

A trend receiving too little coverage in Michigan these days is the growing outlook gap between urbanized Michigan and rural Michigan. In a 21st century economy, job creation is dominated by urbanized areas. What happens to rural areas if jobs fade away? One answer is that rural areas get older — and as they get older, they get more dependent on federal benefit programs for the elderly.

With HB4936 the Michigan insurance industry is attempting to shift long term health care costs for accident victims to taxpayers and increase their profits

Our Republican representative in the Michigan House, Greg MacMaster, claims in his latest newsletter that he's still undecided about this legislation, so it may be worthwhile to contact him. His contact information is available at www.gophouse.com/contact.asp,

Dems encouraged to vote in both the February 28th Michigan Presidential Primary and the May 5th Michigan Democratic Caucus

From 2/8/12 e-mail by Michigan Democratic Party Chair, Mark Brewer

Democrats objected to $10 million February 28th presidential primary, but so did some prominent Michigan Republicans

From Republican State Committee Member Bill Bigler to other Republican State Committee Members, arguing against a Michigan presidential primary

First, I object to this primary being called “closed”.  It leads people to think that only GOP can vote in the GOP Presidential “closed” primary, but that is not at all true.  Any Michigan registered voter can vote in Policy’s proposed primary whether they are GOP, Dem, Ind, Lib, Green, or Communist.

In 2012, when it is likely that Obama will be re-nominated without serious opposition, the Democrats will have little incentive to vote in their primary/caucus, so they will be free to cross over and vote in our primary by the hundreds of thousands.

I urge you to vote NO on Policy’s “closed” primary proposal for selecting our GOP Presidential nominee for 2012.  I believe it should be GOPs who select the GOP Presidential nominee.  Policy’s proposal does nothing to ensure that outcome.  While a primary is most inclusive, it includes far too many who should not have a say in this decision. 

News Archive 2012 1st Qtr

News Archive 2011 4th Qtr

News Archive 2011 3rd Qtr

News Archive 2011 2nd Qtr

News Archive 2011 1st Qtr