Monday, November 30, 2009

Technical difficulties at the Alliance for Democracy website

Our website, www.thealliancefordemocracy.org, is experiencing technical difficulties--we have a temporary home page up now, but several of the links on this blog that go back to subsidiary pages are still out. If you have any immediate questions please email the office and we'll do our best to help. We hope to have the problem straightened out soon.

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Monday, November 23, 2009

Thank you, San Fernando Valley AfD

We wish "hail and farewell" to members of the Alliance's San Fernando Valley chapter, who have decided to formally disband in order to work directly on what has been a long-time key issue: public funding of elections.

One of the major accomplishments of the SVF chapter had been the initiation of the California Clean Money Campaign. Last year, a bill to publicly fund the Secretary of State race passed the California Assembly and Senate, and is due to go to the public for a vote in 2010. Chapter members have been very active in outreach and public education in order to build grassroots support for passage of this ballot question.

We'd like to thank chapter president Robin Gilbert, as well as long-time chapter member and former AfD national council members Dolly Arond and Jo Seidita, as well as all the SVF chapter members who built the organization through their work on member outreach, administration, and newsletters.

We'll keep everyone updated on the progress of the California Clean Money initiative, in the hopes that a victory on the ballot next year leads to more funding for more state races, and greater support in other states for clean elections. To see what's going on check out the campaigns' websites, Californians for Fair Elections and the California Clean Money Campaign.

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Health care debate and the single payer fight moves to the Senate--call today to support Sanders' amendments to health care bill

After our many alerts for action at each stage of the struggle for real health care reform in the House, our attention now turns to the Senate.

Late Saturday night, after debate over allowing debate on the Patient Protection and Affordability Act, Senate Democrats stopped the threat of a Republican filibuster on a party-line vote 60-39.

Today, please take action to bring the single payer argument to the Senate:
Physicians for a National Health Program report Senator Bernie Sanders will introduce two single payer/Medicare for All amendments to the Senate bill.

The first would create a national single-payer/Medicare for All plan, similar to his earlier S. 703 and Conyer’s H.R. 676, and the second would allow states to adopt single payer similar to Rep. Kucinich’s amendment that never got to the House floor.

Please call your senators now (capital switchboard 202-224-3121, or call their offices directly) and urge them to vote "yes" on Sanders' two single-payer amendments.

You may send a fax directly from the PNHP website here.

PNHP writes: The Senate bill like the House version (H.R.3962) is totally inadequate. In brief, it gives $450 billion in taxpayer money to the private insurance industry, along with an individual mandate that shunts them millions of mandatory new customers for their defective product. It doesn’t expand Medicaid or private coverage for another four years, until 2014, and event then would leave over half of the uninsured – 24 million people – without any coverage. The puny “public option” would only cover 1 percent of Americans. All key elements of the bill have already been tried and failed to reduce the number of uninsured or health care costs at the state level. The only durable result is likely to be a strengthening of the power of the insurance and drug companies to hijack the reform process.

Read more:
From PNHP: Talking points on HR 3962 with some comparisons to the Senate (Reid) bill in bold here

From PNHP: Robert Reich, "The public option ain't what it used to be"

Huffington Post: "Meet the New Health Care Reform, Same as the Old Health Care Reform"

Human Rights Day on December 10th.
The Single Payer Coaliton, including AfD, is working to build actions on that day. Now is the time for you to write a Letter to the Editor to your local paper on healthcare as a human right not a corporate right to profit. Why should the corporate person deny care to real persons? Please contact info@healthcare-now.org if you would like to organize an action near you.

Thank you for taking action today!
AfD’s Single Payer/Medicare for All Team...
Nancy, Peter, David, Rick, Barbara, Ruth W., Ruth C., and Lou

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Saturday, November 21, 2009

Weak Public Option Myths That Liberals Believe

You may be an optimist or you may be a Democrat legislator trying to do a good turn for your friends in the insurance biz... either way, here's three misconceptions about the public option, as envisioned in current House and Senate bills.

by Kevin Gosztola, , posted on OpEd News November 20

Thanks to the "We Support Single Payer and the Mad as Hell Doctors" Facebook Group.

On Saturday night, the Senate will take a procedural vote to move debate on the current health insurance enrichment bill in Congress forward.

Democratic Senators like Dick Durbin, Patrick Leahy, and Chuck Schumer, through a project called Citizens for a Public Option, have been building support for the public option and encouraging Americans to write letters to the editor that debunk health care reform myths---myths that the conservative echo chamber have been propagating.

Senators (and representatives in the House and Obama) can champion this health insurance legislation all they want and claim it will “foster greater competition in the marketplace, create more choices for consumers, and lead to lower costs and better quality for all,” but doctors who have been on the front lines of America's sick care non-system do not believe many of the arguments that Democrats are using to create support for a public option.

Myth #1 – Public option will help control costs
Dr. Margaret Flowers with Physicians for a National Health Program (PNHP) explains that Americans have been led to believe that “the public option is going to keep companies honest and help control costs.”

Obama and Congress are taking an approach that has failed to control costs time and time again.

“We've already had states that have tried this type of approach over the past few decades,” says Flowers. “Every state that has tried this approach has had these grandiose hopes where they had said we're going to cover this many of hundreds of thousands of people in this time period and not a single one of them has succeeded. They've all fallen far short and then gone under financially.”

Self-employed doctor, Dr. Matt Hendrickson, who risked arrest in a MobilizeforHealthcare.org action at the Cigna Offices in Glendale, CA, cites examples “from the last 20 years of states that have attempted a public option.” He explains that Tennessee, Oregon, and Massachusetts (twice) have tried the public option.

“In each case, the number of uninsured went down briefly then returned to the baseline for one reason: cost,” said Hendrickson. “There's no way to control cost as long as you allow private insurance industry to add a 25% surcharge to all healthcare transaction and to continue divert money to avoiding the sick, marketing and advertising, to avoid the sick and try to dump them onto a public plan.”

Anesthesiologist Dr. Samuel Metz, who is with the Mad as Hell Doctors, explains, “Massachusetts has been held up as an example of a state that has come closest to providing universal health insurance. However, not only has it failed to provide universal health insurance. It is also now the most expensive place on the planet for healthcare. It leads the U.S. in annual cost per person.”

The public option, “will not reduce the cost of healthcare,” says Metz. “In fact, it's anticipated it will add $800 billion more into a system that's already twice as expensive as the average industrialized nation.”

Myth #2 – The public option is a "public" option
The public option that came out of the House, according to Dr. Flowers, is “even worse than we could have imagined because they're predicting that maybe 2% of the population will be able to go into that public option, that it will be run by private insurance companies, and that it will actually cost more than private insurance.”

What's so public about something only open to 2% of the population?

As Kevin Zeese from the Prosperity Agenda explains, “No matter how much you hate your current insurance, no matter how much they've abused you with premiums, co-pays, denials of care, no matter what they've done to you, you can't leave your insurance and go to the public option,” said Zeese. “90% of Americans can't even choose it. So much for choices.”

Flowers adds the government would be subsidizing the purse of private insurance to try to help people buy their products. Government would be putting public dollars into the pockets of private insurance companies. And, a private corporation would be allowed to run the public option.

How many Americans really think putting reform in the hands of those who have created this crisis in health care in America will ultimately work or produce any favorable results?

Myth #3 – Public option will make single-payer possible
Doctors, nurses, and patients following the de-evolution of health care reform closely know that the public option (especially the idea of a robust public option) is a carefully calculated political carrot being offered to progressives so they will sit down, shut up about single-payer, and support this current corporate giveaway to private insurance companies, which is moving through Congress right now.

Hendrickson explains, “The reason why the public option was introduced, according to congress people that have spoken to the single-payer movement, was because of the single-payer movement. There was such an upswell in the progressive part of this country for single-payer that they opted for some compromise that would not have been given if there wasn't so much support for single-payer.”

If you ask Zeese, this won't do anything to get us closer to single-payer.

This bill will “enshrine and deepen the power of the insurance industry.” Hundreds of billions of dollars in new revenue, according to Zeese, will now be available for corrupting and influencing Congress.

It will be even harder to get single-payer if a weak public option remains in the bill. And the money government gives away will help private insurance fight any additional reforms to legislation passed by Congress and Obama.

Metz concludes that the public option will make it impossible for us to achieve universal coverage for at least a decade.

“Every passing year we'll see more Americans with worse health and nobody will do anything because we will point to our legislation and say give it another couple years to work,” says Metz. “And in five years, we will have exhausted the financial resources of the government, we will have exhausted taxpayers, we will have exhausted the good will of voters, the patience of voters, and no one will want to attempt health reform again.”

Kevin Gosztola is a documentary filmmaker working on a documentary project on Renaissance 2010 and Chicago Public Schools, and, with the group Critical Encounters, is planning a media summit for Chicago in April 2010.

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Thursday, November 19, 2009

Can't buy the popular vote in Mendocino and Davis

Two election day victories show that developers, even when backed by powerful not-for-profits, can't buy the approval of the voters.

In Mendocino County, Developers Diversified Realty (DDR) of Ohio, whose motto is: “Together, we break ground every day,” owned an old industrial property just south of Ukiah on Highway 101 and wanted to build a 800,000 square-foot mall and housing complex there. DDR a Real-Estate Investment Trust (REIT) has projects in 44 states, Canada, Brazil and Puerto Rico. The Otto family of Germany, a leading European developer and manager of inner-city shopping centers in Central and Eastern European countries, has a one-third stake in DDR, and major development interests in the U.S.

Though the Ukiah City Council and County Supervisors said no to the project, DDR hired signature gatherers, qualified a ballot initiative to rezone the site from industrial to commercial-mixed use, and launched “Mendocino County Tomorrow”. Because this huge development would impact downtown and surrounding established businesses, AfD Councilmember Steve Scalmanini and others founded Save Our Local Economy and defeated the measure 62-38%.

Final numbers won’t be in until January, but looks like DDR spent about $900,000 for their “free speech,” while the grassroots spent $92,000...for DDR, that’s about $125.00 per “yes” vote. Steve reports that one local political strategist commented: “They spent a million dollars to get out our vote!”

Read more here, here, and here. Save Our Local Economy has outlined better ideas for the site, including green technology industrial complexes that could house businesses in the sectors of renewable energy, such as biomass, solar farming, and green building.

Meanwhile, in Davis, a General Plan amendment Measure P, to allow a peripheral development of 191 houses, endorsed by the Sierra Club because of green design features including roof-top solar, was defeated 75-25% by 30% of registered voters and all precincts voting “No” - an amazing, sweeping victory. The developer paid $240,000 for this special election, buying a public process for private gain, claiming the election was costing Davis voters nothing. Although, final reports are not in, the “Yes” side spent an additional $300,000 vs. under $5,000 for the “No” side.

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Marking the 10th anniversary of the "Battle of Seattle"

Join local Alliance for Democracy chapters and members in Oregon, Washington, and California at events marking the 10th anniversary of protests that shut down the World Trade Organization ministerial in Seattle. At stake was our jobs, wages, the environment and our health--under global attack by a neoliberal elite out to establish unfettered greed, or as they put it, "free trade", as the highest possible good.

Teamsters and turtles are not as close now as they were ten years ago, but the corporate CEOs are still at it, and on November 30--ten years to the day of the Seattle protest and march--trade ministers will be meeting in Geneva to expand the WTO agenda.

If you're close to any of these events, come and show which side you're on. If not, why not organize your own? Public Citizen's Trade Turnaround Week of Action has suggestions for films and resources for letter-writers. Or you could organize a district visit on behalf of the HR 3012, the TRADE Act--see our "how to" guide here.

On Saturday, December 5, the Sonoma County Alliance Chapter and the Sonoma County Peace and Justice Center host a forum commemorating the 10th anniversary of the “protest of the century” – Seattle ’99 against the World Trade Organization.

Speakers include Norman Solomon on what has happened in the ten years since “teamsters and turtles” joined forces in the Seattle streets, Ted Nace on new models for fighting corporate power, Richard Heinberg on the collapse of globalization, and Newman Strawbridge on the working poor. Cal Simons, chapter organizer, will model a classic AfD yellow poncho to be raffled off for fundraising. This event is from 1-5 pm at Veterans Memorial Building, 282 High Street, Sebastopol. For more information, contact the SEATTLE+10 Committee at 707-527-7191.

Also on December 5, join the Portland, Oregon Chapter of Alliance for Democracy for D5: Mobilization Against the 2009 WTO Ministerial when people from throughout Oregon will converge in downtown Portland for a mass march, indoor rally and concert to voice opposition against the new World Trade Organization ministerial meeting in Geneva - and also celebrate the10-year anniversary of the successful Seattle WTO protests which closed the 1999 ministerial down.

Meet at 12 noon in Tom McCal Waterfront Park under the Hawthorne Bridge for the 1 p.m. march to World Trade Center, Federal Building and Wells Fargo Building, and the 2 p.m. Indoor Rally and Concert at PSU. See you in the streets because another world is possible, another economy is necessary! Visit the website for additional details: www.december5.org

Meanwhile, in Seattle, also on December 5, AfDers will be joining with other organizations in a Kitchen Table Democracy event with Riki Ott. The event is scheduled atTrinity Lutheran Church, 1200 10th Ave E., Seattle, time TBA. For information, email Rebecca.

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Wednesday, November 18, 2009

No decision this week on Citizens United v. FEC

A decision in the "Hillary the Movie" case, Citizens United v. FEC, has been expected since early this month. Monday could have seen an announcement from the Supreme Court, but the justices handed down decisions in three other cases instead. Look for a December decision at the earliest. Meanwhile, USA Today analyzes the impact of a pro-corporate-money decision in the case on governors' races--corporate campaign spending in several states is banned now, but these rules would be overturned if the court finds in favor of Citizens United.

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Tuesday, November 17, 2009

EPA attorneys critical of cap-and-trade are asked by the agency to keep objections private

Two EPA attorneys who publicly criticized "cap-and-trade" as "fatally flawed" in both a YouTube video and a Washington Post op-ed have been told by the agency to remove or edit their video, entitled "The Huge Mistake."

EPA also said that the attorneys, Laurie Williams and Allan Zabel, would have to get prior approval for any outside writing projects they did.

Williams and Zabel say the solution to controlling carbon emissions is a system of fees and rebates, and that a cap-and-trade scheme, as written in the bill currently under consideration, locks us into our current pattern of climate degradation for approximately twenty years. They recently appeared on Democracy Now! to discuss their experiences with EPA and their views on climate change policy. The video is below.

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Monday, November 16, 2009

November "Defending Water in Maine" newsletter online

The Defending Water in Maine's November Newsletter is online. Read and learn about LR 2282, a Maine state bill to prohibit significant groundwater well development on public lands, an important vote on a water extraction ordinance in Wells, and "The Water Is Ours, Dammit!", a water justice art show opening in Portland.

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Friday, November 13, 2009

Corporate money: "Enjoy it while you can!"

The GOP has their health care plan, and the Democrats have their's: both of them can be described as "soak up as much cash from special interests and corporate donors as long as you have a seat on the gravy train." (This is also their energy plan, their jobs plan, their finance reform plan...) From PeaceTeam.net:



Share with friends and follow the link and send a fax to your members of Congress calling for Medicare for All, a sensible policy proposed by Dr. Marcia Angell in point #1 here.

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Thursday, November 12, 2009

AfD Portland blogging at...

The Alliance for Democracy's Portland chapter is blogging at afdportland.wordpress.com. Check out the site for updates and announcements on chapter activities and campaigns, and posts on a variety of issues from chapter members.

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Fourteen reasons to reject corporate options for health care

Over the transom comes 14 things to keep in mind as we continue the fight to democratize health care and get the money out of politics--projects as closely related as diet and exercise. Thanks to John Jonik, a blogger and cartoonist from Philadelphia.

Fourteen Reasons to Reject Corporate Options for Health Care
by John Jonik
If a Critical Mass of the public actually knew what the Health Care Brouhaha involved, progressives and conservatives would unite in opposing current and planned policies. Imagine....

1) Private insurers are businesses that must grow.
Their inclusion in any national program guarantees endless cuts in service, and endless hikes in costs to the public.

2) Private insurers, being businesses, have motive and duty to provide as little service as possible at the highest price possible. This is an adversarial situation with the public.

3) A significant chunk of what was ostensibly customers’ health care money goes to contributions to political candidates that many may not care to support. Mandatory purchase of private insurance would have our government---our sworn and paid representatives---compelling citizens to provide revenues to candidates preferred by private insurers. There is no public interest health-related justification for mandating this part of an insurance policy.

4) Significant revenues supplied by insurance customers go to lobbying for legislation that favors the private insurance interests rather than the interests of the public. Again, no health-related public interest exists in this part of an insurance policy.

5) Large percent of the cost of a policy goes to other non-health-related things such as advertising, CEO bonuses, corporate jets, business conventions, and corporate headquarters upkeep. No health-related justification exists for mandating that citizens pay for that along with the actual health benefits.

6) For-profit insurers, using revenue collected from customers, invest in all sorts of private businesses, many being among the most health-damaging ones, including cigarette manufacturing, pesticides (including many tobacco pesticides), dioxin-producing chlorine industries, genetically engineered crops, and so forth. This creates a conflict of interest in that insurers would be inclined to ignore or play down harms caused by their investment properties. This conflict motivates insurers to blame, as a distraction and PR tactic, every non-industrial thing they can think of for causing diseases.

7) For-profits invest heavily in environmentally destructive industries such as mountaintop removal coal mining, oil, clearcut logging, and factory fishing.
These insurers also invest in sweat-shop operations, military contractors, and union-busting firms. Mandating that anyone contribute to any of that is an affront to all citizens who have been harmed by, or who oppose, those industries.

8) For-profit insurers, still using what was ostensibly customer’s health care money, may invest in businesses that compete with a customer’s own business or private investment property.

9) For-profits invest in businesses that a customer may disapprove of for moral or religious reasons. A mandate to purchase services from such an insurer would be a compulsion on people to violate their own beliefs.

10) For-profits invest in pharmaceuticals, thus creating a conflict of interest in that such an insurer would use its power to favor drugs from its own investment holdings over others that may be cheaper, more effective, or safer.

This conflict would also prompt an insurer to be lax in checking, or warning about, insufficiently-tested or harmful drugs....it's own investment properties or others. After all, they can't open this Can of Worms at all lest it negatively affects them This syndrome virtually guarantees that an insurer would oppose use of natural, un-patented remedies.

11) Mandates to purchase private health insurance are notably different from mandates on car owners to buy auto insurance. One may opt out of that compulsion by simply not driving. But, with health care, those in certain income brackets where “having” insurance is to be mandated will have no option except unacceptable ones---to a) leave the country, b) deplete assets to avoid the obligation, or c) die.

12) Mandates force people to speak to private insurers, an apparent violation of the Fifth Amendment---especially regarding the above-noted parts of the program that have no justification on health care grounds.

13) Those who are in the income level that will be compelled to purchase private insurance services will be paying private insurers twice---once directly to insurers, the second time via their taxes for the govt to subsidize private insurance for low income people. That is…govt will not just pay doctors and hospitals---it will give our tax money to private insurers to administer that…at great cost.

14) When the government subsidizes private insurance for low income people, much of that money will still go to the non-health-related things
--including the investments in god-knows-what, and including big campaign contributions to political candidates.

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Tuesday, November 10, 2009

To do: Call senators in support of S 703 and Kucinich Amendment

Please set aside some time this week to call your senators on behalf of Sen. Bernie Sanders' single payer bill, S 703. And ask your senators to support reinstating Rep. Dennis Kucinich's state single-payer amendment when the House and Senate versions of the health care reform bill go to conference committee.

Here's Sen. Sanders talking to Rachel Maddow about the Stupak Amendment, and cost containment in the absence of a public option to compete with private plans:

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Monday, November 9, 2009

Follow the money, votes, and need on health care reform

A terrific table in the Washington Post tells you who voted for the House reform bill, how much money they get from the health industry, and the percentage of people in their district without health insurance.

Not everyone who picked up bags of cash was a yes vote, and not everyone who has a lot of uninsured constituents approved the bill either. Joe Linus Barton, for instance, a republican from Texas's 6th district, received $2.7 million plus in donations and has 23.3% in the district who lack coverage (several districts have higher percentages of uninsured residents, up to 43% for Texas's 29th district. Even in Massachusetts, where universal mandated coverage with subsidies served as a model for the federal plan, coverage is between 96.3 and 93.2 percent.)

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Is the House health care bill better than nothing?

Good criticisms of what's lacking in the House bill, plus recommendations for common-sense reform.



by Dr. Marcia Angell, posted on The Huffington Post November 8
Well, the House health reform bill -- known to Republicans as the Government Takeover -- finally passed after one of Congress's longer, less enlightening debates. Two stalwarts of the single-payer movement split their votes; John Conyers voted for it; Dennis Kucinich against. Kucinich was right.

Conservative rhetoric notwithstanding, the House bill is not a "government takeover." I wish it were. Instead, it enshrines and subsidizes the "takeover" by the investor-owned insurance industry that occurred after the failure of the Clinton reform effort in 1994. To be sure, the bill has a few good provisions (expansion of Medicaid, for example), but they are marginal. It also provides for some regulation of the industry (no denial of coverage because of pre-existing conditions, for example), but since it doesn't regulate premiums, the industry can respond to any regulation that threatens its profits by simply raising its rates. The bill also does very little to curb the perverse incentives that lead doctors to over-treat the well-insured. And quite apart from its content, the bill is so complicated and convoluted that it would take a staggering apparatus to administer it and try to enforce its regulations.

What does the insurance industry get out of it? Tens of millions of new customers, courtesy of the mandate and taxpayer subsidies. And not just any kind of customer, but the youngest, healthiest customers -- those least likely to use their insurance. The bill permits insurers to charge twice as much for older people as for younger ones. So older under-65's will be more likely to go without insurance, even if they have to pay fines. That's OK with the industry, since these would be among their sickest customers. (Shouldn't age be considered a pre-existing condition?)

Insurers also won't have to cover those younger people most likely to get sick, because they will tend to use the public option (which is not an "option" at all, but a program projected to cover only 6 million uninsured Americans). So instead of the public option providing competition for the insurance industry, as originally envisioned, it's been turned into a dumping ground for a small number of people whom private insurers would rather not have to cover anyway.

If a similar bill emerges from the Senate and the reconciliation process, and is ultimately passed, what will happen?

First, health costs will continue to skyrocket, even faster than they are now, as taxpayer dollars are pumped into the private sector. The response of payers -- government and employers -- will be to shrink benefits and increase deductibles and co-payments. Yes, more people will have insurance, but it will cover less and less, and be more expensive to use.

But, you say, the Congressional Budget Office has said the House bill will be a little better than budget-neutral over ten years. That may be, although the assumptions are arguable. Note, though, that the CBO is not concerned with total health costs, only with costs to the government. And it is particularly concerned with Medicare, the biggest contributor to federal deficits. The House bill would take money out of Medicare, and divert it to the private sector and, to some extent, to Medicaid. The remaining costs of the legislation would be paid for by taxes on the wealthy. But although the bill might pay for itself, it does nothing to solve the problem of runaway inflation in the system as a whole. It's a shell game in which money is moved from one part of our fragmented system to another.

Here is my program for real reform:

Recommendation #1: Drop the Medicare eligibility age from 65 to 55. This should be an expansion of traditional Medicare, not a new program. Gradually, over several years, drop the age decade by decade, until everyone is covered by Medicare. Costs: Obviously, this would increase Medicare costs, but it would help decrease costs to the health system as a whole, because Medicare is so much more efficient (overhead of about 3% vs. 20% for private insurance). And it's a better program, because it ensures that everyone has access to a uniform package of benefits.

Recommendation #2: Increase Medicare fees for primary care doctors and reduce them for procedure-oriented specialists. Specialists such as cardiologists and gastroenterologists are now excessively rewarded for doing tests and procedures, many of which, in the opinion of experts, are not medically indicated. Not surprisingly, we have too many specialists, and they perform too many tests and procedures. Costs: This would greatly reduce costs to Medicare, and the reform would almost certainly be adopted throughout the wider health system.

Recommendation #3: Medicare should monitor doctors' practice patterns for evidence of excess, and gradually reduce fees of doctors who habitually order significantly more tests and procedures than the average for the specialty. Costs: Again, this would greatly reduce costs, and probably be widely adopted.

Recommendation #4: Provide generous subsidies to medical students entering primary care, with higher subsidies for those who practice in underserved areas of the country for at least two years. Costs: This initial, rather modest investment in ending our shortage of primary care doctors would have long-term benefits, in terms of both costs and quality of care.

Recommendation #5: Repeal the provision of the Medicare drug benefit that prohibits Medicare from negotiating with drug companies for lower prices. (The House bill calls for this.) That prohibition has been a bonanza for the pharmaceutical industry. For negotiations to be meaningful, there must be a list (formulary) of drugs deemed cost-effective. This is how the Veterans Affairs System obtains some of the lowest drug prices of any insurer in the country. Costs: If Medicare paid the same prices as the Veterans Affairs System, its expenditures on brand-name drugs would be a small fraction of what they are now.

Is the House bill better than nothing? I don't think so. It simply throws more money into a dysfunctional and unsustainable system, with only a few improvements at the edges, and it augments the central role of the investor-owned insurance industry. The danger is that as costs continue to rise and coverage becomes less comprehensive, people will conclude that we've tried health reform and it didn't work. But the real problem will be that we didn't really try it. I would rather see us do nothing now, and have a better chance of trying again later and then doing it right.

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Kucinich: Why Is It We Have Finite Resources for Health Care but Unlimited Money for War?

Following a statement on the House floor on Friday, Dennis Kucinich made the following statement:

"Why is it we have finite resources for health care but unlimited money for war?

"The inequities in our economy are piling up: trillions for war, trillions for Wall Street and tens of billions for the insurance companies. Banks and other corporations are sitting on piles of cash of taxpayer's money while firing workers, cutting pay and denying small businesses money to survive.

"People are losing their homes, their jobs, their health, their investments, their retirement security; yet there is unlimited money for war, Wall Street and insurance companies, but very little money for jobs on Main Street.

"Unlimited money to blow up things in Iraq and Afghanistan, and relatively little money to build things in the US.

"The Administration may soon bring to Congress a request for an additional $50 billion for war. I can tell you that a Democratic version of the wars in Iraq and Afghanistan is no more acceptable than a Republican version of the wars in Iraq and Afghanistan.

"Trillions for war and Wall Street, billions for insurance companies... When we were promised change, we weren't thinking that we give a dollar and get back two cents."

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Saturday, November 7, 2009

No vote on Weiner Amendment

Here's the statement from Healthcare-NOW and associated groups, including AfD:

On the eve of what could have been the first vote on single-payer legislation in our nation's history, we have just learned that because of last minute developments, the vote and debate on Congressman Weiner's single-payer amendment will not happen.

Speaker Pelosi received a statement from Rep. Kucinich and Rep. Conyers, the co-authors of HR 676, that they do not think that this is the right time for a vote on national single-payer legislation. They made this statement despite the extensive mobilization in support of this vote across the country. In addition, Speaker Pelosi felt that offering a single-payer amendment would open the floodgates to amendments proposed to limit abortion funds, restrict immigrant access to healthcare, and other regressive legislation.

Let us remember that the potential vote on Congressman Weiner's single-payer amendment resulted from holding fast to our principles of universal, comprehensive healthcare with no financial barriers. These efforts have brought truth and clarity to a national debate on healthcare reform that has been polluted by the corporate influence over Congress. While the private insurance industry has sent 3,000 lobbyists to Capitol Hill this year, spending 1.4 million dollars a day to shape reform that protects their profits, our calls, faxes, and demonstrations have created the momentum to bring legislation based on HR 676 to the floor of the House and Senate.

The vote for Congressman Weiner's single-payer amendment would have allowed advocates to have their representatives on record as single-payer supporters.

But this legislative battle is not yet over. Our focus can now turn to two remaining efforts for single-payer in this Congress. Sen. Bernie Sanders will introduce S 703 in coming weeks, and we understand that he is considering editing it to be more like HR 676. We will have the opportunity again to see the first ever vote on single-payer in this Congress. In addition, Rep. Kucinich's amendment to allow states to more easily implement a single-payer system may be reinserted into the bill during the conference committee between the House and Senate.

All of these efforts are crucial to building the movement for the only solution to our healthcare crisis - single-payer national healthcare.

If this Congress passes inadequate legislation, there will no doubt be emboldened state movements in the coming years. We welcome them. But let us not forget the movement to push our federal legislators to meet the demands of the people, not roll that responsibility onto the states. Healthcare-NOW! and the Leadership Conference for Guaranteed Health Care remains committed to a national, single-payer solution to the healthcare crisis. Comprehensive, quality healthcare is a right that should be extended to every U.S. resident.

At this important time, let us not forget how far we have come. Either now or later, a single-payer national healthcare system must come to the table. We will keep building the movement to make that happen.

For healthcare justice,

Healthcare-NOW!

Physicians for a National Health Program

Progressive Democrats of America

Public Citizen
Healthcare for All Texas
Western PA Coalition for Single Payer
Alliance for Democracy

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Thursday, November 5, 2009

Sit-in at Leiberman's office highlight's senator's industry ties

This morning, eight people from Mobilization For Health Care for All are sitting-in the office of Sen. Joseph Lieberman demanding that he stop taking money from the insurance industry.

In their statement, the group notes that "massive campaign donations and lobbying spending of the insurance industry is blocking real reform that would provide everyone in America with access to health care. When 45,000 people are dying annually due to lack of health care it is a moral imperative that America act now to provide health care to all. We are able to do this for senior citizens, why not for all Americans?"

They ask that people call Senator Lieberman's office and tell him to stop taking insurance money. His numbers are: (202) 224-4041 and (860)549-8463. There is also an online petition asking him to forgo insurance industry donations.

Leiberman is certainly not the only legislator to be heavily funded by for-profit groups with a strong stake in preserving as much of the health care status quo as possible--or ensuring that individual mandates are based on government subsidies for private health insurance plans, not a more economical and equitable single payer system. You can explore OpenSecrets.org to see what's funding your legislators, too.

Finally, bail money donations and help with general funding for the Mobilization are especially welcome. In the last month, thousands of people have signed up to participate or support sit-ins, with more than 920 willing to risk arrest. By the time the House votes on its health care package, the Mobilization will have held 32 sit-ins in 28 different cities with more than 150 arrests and over 220 risking arrest.

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Breaking news from PNHP: Weiner Amendment could possibly come to the floor Friday/Saturday

Physicians for a National Health Program reports that Rep. Anthony Weiner's Medicare for All amendment may come to a floor vote this Friday or Saturday, with a short debate session allowed--20 minutes or so.

If you called, faxed, or emailed, you helped make this happen. Thank you!

Now it's time to get your Congress member to vote yes. Every support vote is important.

Send a fax to your member of Congress here, through 1payer.net. Or write your own health care message and send it by clicking here.

Then follow the fax up with a phone call. The Congressional switchboard is (202) 224-3121, or you can look up your rep's website by name or by your zip at the top of the House web page here.

If your Representative is a co-sponsor of HR 676, thank him or her and tell them you expect consistent support for single payer through the vote on the Weiner Amendment.

No industry lobbying group, no well-connected corporate board members, no "corporate persons," want to see a health care reform bill that puts people before profits. But our work won't end until we get what works, what's fair, and what's right--an everybody-in, nobody out, single payer health care system. So speak out now!

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Kucinich Amendment out of House bill, so conference committee is its last chance

According to Rep. Dennis Kucinich's office, his amendment to change ERISA regulations to help states set up their own single payer health care systems will not be part of the Managers Amendment, despite approval by congressional subcommittee and many calls on its behalf in the last few days.

However, once the current reform bill passes the House it goes before a conference committee to be reconciled with whatever reform bill comes out of the Senate. It's possible that the conference committee report, which will eventually become law, might include the Kucinich Amendment. Our calls, letters, faxes, visits, etc., will then be extremely important in the fight to keep single payer going on the state level, where legislators are more accessible and accountable to the people who elected them, rather than to the entities that fund their re-election campaigns.

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Wednesday, November 4, 2009

Corporate personhood strategy session in Concord, Massachusetts

This Sunday, join Boston-area AfD members, local activists, and citizens concerned about corporate rule at the Alliance for Democracy's southern New England member meeting. Not a member? Come anyway!

Seating is limited, since the venue is a member's home in Concord--please email afd@thealliancefordemocracy.org for location and directions and to RSVP, or if you need a ride from the train station!

We'll be meeting from 4-7 p.m on Sunday, November 8 with:

  • Ruth Caplan, Director, Alliance for Democracy’s Defending Water for Life project--How have small towns organized to take away corporate personhood rights?
  • Jeffrey Clements--the Concord lawyer who authored an amicus curiae brief in “Citizens United v. FEC”—the “Hillary, the Movie” case. The case will be decided by the US Supreme Court and could overturn decades of hard-fought victories against corporate influence peddling in elections.
If you'd like to stay for a potluck dinner! Please consider bringing an entrée, vegetable or salad, or dessert to share (local ingredients if you can!). If not, Jeffrey and Ruth will be speaking from 4 to 5:30 or so, with questions.

Get involved! Come find out what the national organization has been doing, what local chapters and members are working on, and how you can participate in creating a healthy democracy—locally and nationally. Join old friends and new for good food, good conversation and good news about grassroots alternatives to corporate rule.

RSVP to afd@thealliancefordemocracy.org.

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This weekend in Portland, Oregon!

Portland's Alliance for Democracy hosts two events for their regional member convention: Here's the info from coordinator David Delk; or see the chapter website.

One day: Saturday, November 7th
Two events: (1) Alliance for Democracy Regional Conference and (2) screening of the new video TAPPED.
Who is invited: You are. Everyone who has a concern about democracy, economic and social justice, political process, the economic crisis and how we move forward.

Alliance for Democracy teams up with the Economic Justice Action Group of the 1st Unitarian Church to sponsor the AfD Regional Conference on Democracy. They are both joined by the Community for Earth of the 1st Unitarian Church in sponsoring the video TAPPED.

Here are the details:

(1) Alliance for Democracy Regional Conference on Democracy

Democracy demands an informed citizenry

Join the Alliance for Democracy for their Regional Conference as we interact with Portland activists like:

  • Barbara Dudley - PSU political science professor, former head of the National Lawyers Guild, and Greenpeace USE
  • Margaret Butler - Exec Director of Jobs with Justice
  • Arthur Stamoulis - Oregon Fair Trade Campaign Exec Director
(Barbara, Margaret and Arthur will address the current economic crisis and steps required to resolve it.)
  • Dan Meek - public interest attorney speaking on the US Supreme Court case which likely will increase corporate power. Dan is well known for writing and advocating for campaign finance reform.
  • Janice Thompson- director of Common Cause Oregon on Voter Owned Elections (public funding of candidates)
  • Judy Barnes – AfD supporter speaking on Renewal Energy Payments. Judy was the individual who first suggested that Public Utility Districts be formed in the Portland metro area to replace Enron/PGE.
  • Nancy Matela – AfD supporter on the crisis of water. She is well known as the convener of the Oregon Voter Rights Coalition opposing the use of electronic voting machines. Now she is back to her original concern, water and the dangers of privatization.
Time: 1 PM to 4:30 PM; doors open at 12:30 so we can start right at 1 PM.
Admission: No charge but donations will be welcome.

(2) TAPPED
From the producers of Who Killed the Electric Car

Is access to clean drinking water a basic human right, or a commodity that should be bought and sold like any other article of commerce?

From the plastic production to the the ocean in which so many of these bottles end up, this inspiring documentary trails the path of the bottled water industry and the communities which were the unwitting chips on the table. A powerful portrait of the lives affected by the bottled water industry, this revelatory film features those caught at the intersection of big business and the public's right to water.

Video will be followed by discussion with Alliance for Democracy water activist, Nancy Matela, who has been working opposing Nestle's plans to open a bottled water plant in Cascade Locks.

Time: 7- 9 PM, doors open at 6:30 PM.
Admission: $5 - $20 but no one turned away for lack of funds.
More info on the video at www.tappedthemovie.com

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We are having an impact! Keep calling!

Just another reminder that it's not too late to call Congress for state level single payer and for a House debate and vote on the Weiner Amendment.

The managers' amendment that can put the Kucinich amendment back into the legislation has not been released. Members of Congress have received many phone calls--hopefully your's too! The push for single payer is working. Please keep it up and call. Email friends to tell them to call. Blog, facebook, tweet, chat--however you get the word out, do it now!

Take the two following steps, and tell others to do the same:

1. Keep the Kucinich amendment in HR 3269! The Kucinich amendment makes changes to ERISA law that make it possible for states to pass single payer and not have it challenged on the basis of ERISA.

2. Keep the promise and let the Weiner amendment come to the floor of the house for a debate and vote. This will be the first time that single payer has come to a vote in the House. It is historic and we don't want to lose this opportunity.

Call:
Speaker Pelosi at 202-225-4965
Majority Leader Hoyer at 202-225-4131
Chairman Waxman at 202-225-3976

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12 arrested yesterday at Pelosi's San Francisco office

From the San Francisco Chronicle:
Federal police on Tuesday arrested 12 supporters of a single-payer health care system who entered House Speaker Nancy Pelosi's San Francisco offices and refused to leave until they talked to the congresswoman.

Police arrested them for creating a disturbance on federal property nearly three hours after they entered Pelosi's offices. Pelosi was not in the office and did not talk to them by telephone.

The protesters, who are in favor of a system administered by the federal government but delivered by private health care providers, entered the waiting room of Pelosi's offices about 11:45 a.m. and were arrested around 2:30 p.m., according to Pam Allen, an attorney with the California Nurses Association.

The activists were protesting the lack of a vote over a "Medicare for All" amendment proposed in the House bill.

Those arrested were cited, released and ordered to appear before a federal judge.

If they can get arrested, you can make a phone call! Tell Nancy Pelosi to keep her promise and allow a floor vote on the Weiner Amendment. In D.C., the number's (202) 225-4965, in San Francisco (415) 556-4862; DC fax: 202-225-8259.

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Monday, November 2, 2009

Corporate money in elections--what to expect

Some probable developments if the Supreme Court decides the Citizens United case so that volume of cash in the bank equals volume of voice in the halls of government.


by Dave Johnson. Posted on The Campaign for America's Future blog November 2
The Supreme Court may decide as soon as tomorrow on the Citizens United v. Federal election Commission case involving a corporate-funded anti-Hillary smear ad. It is likely the conservative-dominated activist court will overturn precedent and rule in favor of removing restrictions on corporate spending in elections, with terrible consequences. The 5-4 ruling will say that large companies injecting vast sums to sway election results is "free speech." Imagine, vocal cords on a Cayman Islands post office box!

Common Cause has a report out, titled, Corporate Democracy: Potential fallout from a Supreme Court decision on Citizens United. "Lifting the ban on corporate political spending could unleash a flood of money into the political system and further diminish the public’s voice," the report says.

Really, imagine regular people trying to run for office while competing with the massive aggregated financial power of the biggest corporations. And imagine what will happen to anyone who dares to try to go up against their interests when they are able to openly spend any amount needed to get their way. I have come up with some examples of what to expect:

The cost of running for office – any office – will increase exponentially.
Even local campaigns will cost millions of dollars, as big corporations install their chosen representatives. Even locally powerful businesses will join the game, with car dealers paying to get local ordinances passed prohibiting new competitors, etc.

Let's imagine... A member of Congress considers voting against a special tax break for a certain very large corporation – or a law outlawing their competitors-–which would bring the company $30 billion. The company lets that representative know they are prepared to spend a measly $200 million on a challenger in the next election, or for them if they vote the right way. How do you think that representative will vote--and if they do the right thing how long do you expect them to keep their seat?

A huge oil company will certainly spend a measly $100 million to install a hand-picked board of county supervisors that will let them put a refinery in the middle of an organic farming or sensitive environmental region.

Why wouldn't agribusiness
spend a mere $1 billion installing legislators who vote to rescind food labeling requirements and food safety regulations?

How long will it take before laws against monopolies, polluting the environment, etc. are repealed?
Each election cycle will see corporate-backed candidates further consolidating the power and financial resources of a very few largest companies.

Health insurance companies will pay Congress to pass a law ordering everyone to buy their product. Oh wait...

This is about the biggest corporations remaining dominant, using government power to channel tax dollars their way, while hampering competition--especially from smaller, less powerful companies. The conservatives on the Court are there thanks to decades of spending by the biggest corporations that swayed public opinion in favor of big-corporation-supporting policies and politicians. We are seeing the results of these so-called "conservative" policies all around us as we lose our houses, raises, jobs and pensions while a select few grow ever richer.

If the Supreme Court rules in favor of this tomorrow it will be the big payoff, forever consolidating big-corporate control of the country and economy and effectively ending what was left of American democracy.

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"Health 'insurance' is a criminal enterprise

As Congress moves to prop up insurance industry profits by having millions sign up for private plans, a bioethicist warns us not to expect anything more than a fight for care.


by Jacob M. Appel Posted on Huffington Post November 1.
Federal lawmakers have squandered much of the autumn debating how best to provide private health insurance to approximately fifty million uninsured Americans. Guaranteeing healthcare for these individuals is certainly a moral imperative. However, relying on private insurers to serve these individuals is about as prudent as hiring a band of pedophiles to run a national childcare program. Anyone who has worked as a healthcare provider long enough, and has been paying attention, eventually comes to recognize private health "insurance" is a large-scale criminal endeavor--part Ponzi scheme, part extortion racket--that consistently exploits patients at their most vulnerable moments. In short, private health insurance is the sort of predatory enterprise, like payday lending and loan-sharking, that should be criminalized.

Health insurance, as the late political historian Edward Beiser pointed out in his seminal 1994 article "The Emperor's New Scrubs," is a misnomer. The principle behind traditional insurance is the distribution of risk. For example, the odds of my home burning down are quite low. The odds of any other home burning in my community are similarly low. However, the odds of some home in our community burning are reasonably high, so we all pay into a reserve fund--"fire insurance"--and whoever suffers the misfortune of a home-burning collects the pot. This "pooling of risk" is a staple of most high school economics classes.

However, health "insurance" does not follow this model, because, over the course of time, nearly all of us will suffer the bodily ills that cause us to draw funds from the collective till. So what we are doing, by paying for private insurance, is having a third party manage our healthcare dollars for us until we're ready to use them. In return, this third party banks the interest and skims a profit off the top, employing an army of paper-pushing middlemen to manage our contributions. The very act of calling these healthcare middlemen "insurers" buys into the false belief that Aetna and Oxford are protecting us against rare occurrences, rather than merely serving as money-managers of our healthcare dollars. (They only provide true "insurance" in cases of catastrophic care for the young, a small and increasingly shrinking portion of healthcare expenditures.) Yet once consumers view these corporations merely as money managers, few sane people would ever invest at interest rates of zero for such low payouts at term.

The system I have described would be cause enough for the government to ban private insurance and replace it with a publicly-run plan. Unfortunately, the economic structure of the system is not nearly as nefarious in theory as it is in practice. Most people in this country who do have private health insurance are happy with their coverage--until they actually attempt to use it. Once they face a medical emergency, however, they soon discover that the unspoken policy of many insurers is to deny as many claims as possible, often on legally and medically implausible grounds, until the patient or his family give up. Multiple calls, usually including direct intervention from a physician, may pressure an insurance company into changing their ruling--but the critically-ill often lack the time and emotional energy to wage such battles. So I fear that, in the drive to assure universal healthcare coverage, policy makers and the general public have missed the larger point: Having health insurance does not do you any good if that insurance doesn't cover your illness or injury.

Opponents of a national health insurance plan often lambaste the straw-man of having public officials determine which procedures will be available to the sick and dying. In contrast, they would have us believe that those determinations are presently made by individual doctors serving the needs of their patients. As a physician, I can assure them that those decisions are actually rendered by low-level employees at large healthcare conglomerates. None of these "no men" have medical degrees; many lack a college education or even a basic understanding of human biology. Their sole job in the world is to deny coverage until pressured into doing otherwise. Alas, the only practical recourse that most patients have is to sue--after navigating a hoop of intermediate remedies such as arbitration, depending on their state and contract. That is about as realistic as telling the passengers aboard the Titanic that they have a right to sue for more lifeboats. The reality is that cancer victims in need of expensive chemotherapy and psychotic patients desperate for in-patient mental health services cannot be expected to lodge lengthy and complex legal challenges against their so-called "insurers." Given the choice between American public servants determining my coverage or private, box-checking lackeys working out of out-sourced shell offices in India, I'd side with the shortcomings of American bureaucracy any day. So would most Americans. That is why Medicare, which follows exactly such a public model, remains so popular.

From an ethical point of view, the real question is not whether there should be a "public option" but whether there should be a "private option." Once a public system of genuine universal health coverage is established, our society will have to decide whether wealthy individuals will be allowed to use their own personal funds to buy additional care that is not provided by the government. Is buying extra chemotherapy or life-support a human right? Or does it transcend a moral boundary, like buying a cornea on the black market? This will prove a difficult ethical dilemma. The government certainly has the authority to ban out-of-pocket supplemental care, much as it prevents private companies from delivering first-class mail and could prohibit the establishment of a private "social security" system. Whether the state should exercise such power is another matter. While most reasonable, progressive people may roughly agree on what ought to constitute the "floor" of health care coverage, any effort to limit costs by creating a "ceiling" will likely generate controversy. Yet, once a national healthcare system emerges and the "public option" swallows much private healthcare, that is likely to be the moral conundrum that we face.

I have little doubt that the day will soon arrive when the CEOs of health "insurers" are dragged before Congress to face the same sort of interrogation at which war profiteers were grilled by the Truman Committee in the 1940s and to which the Waxman Hearings subjected Big Tobacco in the 1990s. (The recent Congressional kid-gloves Q&A sessions are not what I have in mind.) When that day arrives, I do hope Congress permits the victims of falsely denied claims and calculated dithering to testify against them.

During a recent encounter as my hospital, upon learning that a suffering patient's need for essential treatment had been denied by his insurer, the man's social worker informed me that that this patient "had bad insurance." I had heard that line one time too many, so I asked, "What would constitute good insurance?" My colleague replied, "Staying healthy." That may be bitter medicine, but it is the horrific truth: All private insurance plans fall far short when it comes to covering necessary care. To put it bluntly, private health "insurers" sell an enormous sour lemon: a product that does not and cannot work. The best solution -- as radical as it may sound -- might be to criminalize such enterprises entirely.

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Cut Wall Street out! How states can finance their own economic recovery

North Dakota has its own bank--well-capitalized, with no bad derivitive bets on the boosk, no corporate fat cats on the staff, and not guided by the short-term need to create shareholder profit. Is it a coincidence that North Dakota is the only state not posting job losses, and one of two that can meet its budget?

by Ellen Hodgson Brown. Posted on Truthout October 31
Pouring money into the private banking system has only fixed the economy for bankers and the wealthy; it has not done much to address either the fundamental problem of unemployment or the debt trap so many Americans find themselves in.

President Obama's $787 billion stimulus plan has so far failed to halt the growth of unemployment: 2.7 million jobs have been lost since the stimulus plan began. California has lost 336,400 jobs. Arizona has lost 77,300. Michigan has lost 137,300. A total of 49 states and the District of Columbia have all reported net job losses.

In this dark firmament, however, one bright star shines. The sole state to actually gain jobs is an unlikely candidate for the distinction: North Dakota. North Dakota is also one of only two states expected to meet their budgets in 2010. (The other is Montana.) North Dakota is a sparsely populated state of less than 700,000 people, largely located in cold and isolated farming communities. Yet, since 2000, the state's GNP has grown 56 percent, personal income has grown 43 percent and wages have grown 34 percent. The state not only has no funding problems, but this year it has a budget surplus of $1.3 billion, the largest it has ever had.

Why is North Dakota doing so well, when other states are suffering the ravages of a deepening credit crisis? Its secret may be that it has its own credit machine. North Dakota is the only state in the Union to own its own bank. The Bank of North Dakota (BND) was established by the state legislature in 1919, specifically to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men. The bank's stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota.

The Advantages of Owning Your Own Bank
So, how does owning a bank solve the state's funding problems? Isn't the state still limited to the money it has? The answer is no. Chartered banks are allowed to do something nobody else can do: They can create credit on their books simply with accounting entries, using the magic of "fractional reserve" lending. As the Federal Reserve Bank of Dallas explains on its web site:

"Banks actually create money when they lend it. Here's how it works: Most of a bank's loans are made to its own customers and are deposited in their checking accounts. Because the loan becomes a new deposit, just like a paycheck does, the bank ... holds a small percentage of that new amount in reserve and again lends the remainder to someone else, repeating the money-creation process many times."

How many times? President Obama puts this "multiplier effect" at eight to ten. In a speech on April 14, he said:

"[A]lthough there are a lot of Americans who understandably think that government money would be better spent going directly to families and businesses instead of banks - 'where's our bailout?,' they ask - the truth is that a dollar of capital in a bank can actually result in eight or ten dollars of loans to families and businesses, a multiplier effect that can ultimately lead to a faster pace of economic growth."

It can, but it hasn't recently, because private banks are limited by bank capital requirements and by their for-profit business models. And that is where a state-owned bank has enormous advantages: States own huge amounts of capital, and they can think farther ahead that their quarterly profit statements, allowing them to take long-term risks. Their asset bases are not marred by oversized salaries and bonuses; they have no shareholders expecting a sizable cut, and they have not marred their books with bad derivatives bets, unmarketable collateralized debt obligations and mark-to-market accounting problems.

The Bank of North Dakota (BND) is set up as a dba: "the State of North Dakota doing business as the Bank of North Dakota." Technically, that makes the capital of the state the capital of the bank. Projecting the possibilities of this arrangement to California, the State of California owns about $200 billion in real estate, has $62 billion in various investments and has $128 billion in projected 2009 revenues. Leveraged by a factor of eight, that capital base could support nearly $4 trillion in loans.

To get a bank charter, specific investments would probably need to be earmarked by the state as startup capital; but the startup capital required for a typical California bank is only about $20 million. This is small potatoes for the world's eighth largest economy, and the money would not actually be "spent." It would just become bank equity, transmuting from one form of investment into another - and a lucrative investment at that. In the case of the BND, the bank's return on equity is about 25 percent. It pays a hefty dividend to the state, which is expected to exceed $60 million this year. In the last decade, the BND has turned back a third of a billion dollars to the state's general fund, offsetting taxes. California could do substantially better than that. California pays $5 billion annually just in interest on its debt. If it had its own bank, the bank could refinance its debt and return that $5 billion to the state's coffers; and it would make substantially more on money lent out.

Besides capital, a bank needs "reserves," which it gets from deposits. For the BND, this too is no problem, since it has a captive deposit base. By law, the state and all its agencies must deposit their funds in the bank, which pays a competitive interest rate to the state treasurer. The bank also accepts deposits from other entities. These copious deposits can then be plowed back into the state in the form of loans.

Public Banking on the Central Bank Model

The BND's populist organizers originally conceived of the bank as a credit union-like institution that would free farmers from predatory lenders, but conservative interests later took control and suppressed these commercial lending functions. The BND is now chiefly a "bankers' bank." It acts like a central bank, with functions similar to those of a branch of the Federal Reserve. It avoids rivalry with private banks by partnering with them. Most lending is originated by a local bank. The BND then comes in to participate in the loan, share risk and buy down the interest rate.

One of the BND's functions is to provide a secondary market for real estate loans, which it buys from local banks. Its residential loan portfolio is now $500 billion to $600 billion. This function has helped the state to avoid the credit crisis that afflicted Wall Street when the secondary market for loans collapsed in late 2007. Before that, investors routinely bought securitized loans (CDOs) from the banks, making room on the banks' books for more loans. But these "shadow lenders" disappeared when they realized that the derivatives called "credit default swaps" supposedly protecting their CDOs were a highly unreliable form of insurance. In North Dakota, this secondary real estate market is provided by the BND, which has invested conservatively, avoiding the speculative derivatives debacle.

Other services the BND provides include guarantees for entrepreneurial startups and student loans, the purchase of municipal bonds from public institutions and a well-funded disaster loan program. When the city of Fargo was struck by a massive flood recently, the disaster fund helped the city avoid the devastation suffered by New Orleans in similar circumstances; and when North Dakota failed to meet its state budget a few years ago, the BND met the shortfall. The BND has an account with the Federal Reserve Bank, but its deposits are not insured by the FDIC. Rather, they are guaranteed by the State of North Dakota itself - a prudent move today, when the FDIC is verging on bankruptcy.

The Commercial Banking Model: The Commonwealth Bank of Australia

The BND studiously avoids competition with private banks, but a publicly-owned bank could profitably engage in commercial lending. A successful model for that approach was the Commonwealth Bank of Australia, which served both central bank and commercial bank functions. For nearly a century, the publicly-owned Commonwealth Bank provided financing for housing, small business, and other enterprise, affording effective public competition that "kept the banks honest" and kept interest rates low. Commonwealth Bank put the needs of borrowers ahead of profits, ensuring that sound investment flows were maintained to farming and other essential areas; yet, the bank was always profitable, from 1911 until nearly the end of the century.

Indeed, it seems to have been too profitable, making it a takeover target. It was simply "too good not to be privatized." The bank was sold in the 1990s for a good deal of money, but it's proponents consider it's loss as a social and economic institution to be incalculable.

A State Bank of Florida?
Could the sort of commercial model tested by Commonwealth Bank work today in the United States? Economist Farid Khavari thinks so. A Democratic candidate for governor of Florida, he proposes a Bank of the State of Florida (BSF) that would make loans to Floridians at much lower interest rates than they are getting now, using the magic of fractional reserve lending. He explains:

"For $100 in deposits, a bank can create $900 in new money by making loans. So, the BSF can pay 6 percent for CDs, and make mortgage loans at 2 percent. For $6 per year in interest paid out, the BSF can earn $18 by lending $900 at 2 percent for mortgages."

The state would earn $15,000 per $100,000 of mortgage, at a cost of about $1,700, while the homeowner would save $88,000 in interest and pay for the home 15 years sooner. "Our bank will save people about seven years of their pay over the course of 30 years, just on interest costs," says Dr. Khavari. He also proposes 6 percent credit cards and 6 percent certificates of deposit.

The state could earn billions yearly on these loans, while saving hefty sums for consumers. It could also refinance its own debts and those of its municipal governments at very low interest rates. According to a German study, interest composes 30 percent to 50 percent of everything we buy. Slashing interest costs can make projects such as low-cost housing, alternative energy development, and infrastructure construction not only sustainable, but profitable for the state, while at the same time creating much-needed jobs.

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Latin America's economic rebels stand up for rights and reap growth

Despite falling commodity prices and punitive measures by the US, Bolivia will lead the Americas in growth this year, and is reinvesting profits from nationalized industries for the public good. Ecuador's leftist leadership has also created wider prosperity, where neoliberal policies once ensured inequality and lack of social services.

by Mark Weisbrot. Posted on The Guardian October 27
Among the conventional wisdom that we hear every day in the business press is that developing countries should bend over backwards to create a friendly climate for foreign corporations, follow orthodox (neoliberal) macroeconomic policy advice and strive to achieve an investment-grade sovereign credit rating so as to attract more foreign capital.

Guess which country is expected to have the fastest economic growth in the Americas this year? Bolivia. The country's first indigenous president, Evo Morales, was elected in 2005 and took office in January 2006. Bolivia, the poorest country in South America, had been operating under IMF agreements for 20 consecutive years, and its per-capita income was lower than it had been 27 years earlier.

Evo sent the IMF packing just three months after he took office, and then moved to re-nationalise the hydrocarbons industry (mostly natural gas). Needless to say this did not sit well with the international corporate community. Nor did Bolivia's decision in May 2007 to withdraw from the World Bank's international arbitration panel, which had a tendency to settle disputes in favour of international corporations and against governments.

But Bolivia's re-nationalisation and increased royalties on hydrocarbons has given the government billions of dollars of additional revenue (Bolivia's entire GDP is only about $16.6bn, with a population of 10 million people). These revenues have been useful for a government that wants to promote development, and especially to maintain growth during the downturn. Public investment increased from 6.3% of GDP in 2005 to 10.5% in 2009.

Bolivia's growth through the current world downturn is even more remarkable in that it was hit hard by falling prices for its most important exports – natural gas and minerals – and also by a loss of important export preferences in the US market. The Bush administration cut off Bolivia's trade preferences that were granted under the Andean Trade Promotion and Drug Eradication Act, allegedly to punish Bolivia for insufficient co-operation in the "war on drugs".

In reality, it was more complicated: Bolivia expelled the US ambassador because of evidence that the US government was supporting the opposition to the Morales government, and the ATPDA revocation followed soon thereafter. In any case, the Obama administration has so far not changed the Bush administration's policies toward Bolivia. But Bolivia has proven that it can do quite well without Washington's co-operation.

Ecuador's leftist president, Rafael Correa, is an economist who, well before he was elected in December 2006, understood and wrote about the limitations of neoliberal economic dogma. He took office in 2007 and established an international tribunal to examine the legitimacy of the country's debt. In November 2008 the commission found that part of the debt was not legally contracted, and in December Correa announced that the government would default on roughly $3.2bn of its international debt.

He was vilified in the business press, but the default was successful. Ecuador cleared a third of its foreign debt off its books by defaulting and then buying the debt back at about 35 cents on the dollar. The country's international credit rating remains low, but no lower than it was before Correa's election, and it was even raised a notch after the buyback was completed.

The Correa government also incurred foreign investors' wrath by renegotiating its deals with foreign oil companies to capture a larger share of revenue as oil prices rose. And Correa has bucked pressure from Chevron and its powerful allies in Washington to drop his support of a lawsuit against the company for alleged pollution of ground waters, with damages that could exceed $27bn.

How has Ecuador done? Growth has averaged a healthy 4.5% over Correa's first two years. And the government has made sure that it has trickled down: healthcare spending as a percent of GDP has doubled, and social spending in general has expanded considerably from 5.4% to 8.3% of GDP in two years. This includes a doubling of the cash transfer programme to poor households, a $474m increase in spending for housing, and other programmes for low-income families.

Ecuador was hit hard by a 77% drop in the price of its oil exports from June 2008 to February 2009, as well as a decline in remittances from abroad. Nonetheless it has weathered the storm pretty well. Other unorthodox policies, in addition to the debt default, have helped Ecuador to stimulate its economy without running too low on reserves.

Ecuador's currency is the US dollar, so that rules out using exchange rate policy and most monetary policy for counter-cyclical efforts in a recession – a significant handicap. Instead, Ecuador was able to cut deals with China for a billion-dollar advance payment for oil and another $1bn loan.

The government also has begun requiring Ecuadorian banks to repatriate some of their reserves held abroad, expected to bring back another $1.2bn, and it has started repatriating $2.5bn in central bank reserves held abroad in order to finance another large stimulus package.

Ecuador's growth will probably come in at about 1% this year, which is pretty good relative to most of the hemisphere. For example, Mexico, at the other end of the spectrum, is projected to have a 7.5% decline in GDP for 2009.

The standard reporting and even quasi-academic analysis of Bolivia and Ecuador says they are victims of populist, socialist, "anti-American" governments – aligned with Venezuela's Hugo Chávez and Cuba, of course – and on the road to ruin. To be sure, both countries have many challenges ahead, the most important of which will be to implement economic strategies that can diversify and develop their economies over the long run. But they have made a good start so far, by giving the conventional wisdom of the economic and foreign policy establishment – in Washington and Europe – the respect it has earned.

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So can we remake "Sicko?"

Is there anything in the House health care bill that would have helped the folks profiled in Michael Moore's 2007 film Sicko?

Watch and see:

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