All posts by David Dayen

I really don’t like to say I told you so

Aw, who am I kiddin’?

For months, politicians in big states like California, Florida and Michigan have griped about their lack of influence in the 2008 presidential race, pushing up their primaries to try to diminish the sway of Iowa and New Hampshire.

Now, thanks to those efforts, Iowa and New Hampshire appear more important than ever.

It’s mainly a process story about how candidates must score an early victory to be able to gather enough money to compete on February 5.  It was all so eminently predictable, and the relative absence of any Presidential candidates or buzz in this state with a little more than 3 months to go until the primary is further proof.  The only way to end the prospect of Iowa and New Hampshire picking the nominee is to… stop having them pick the nominee.

Looming Recession Update

Continuing my “sky is falling” rhetoric when it comes to the California economy, we now have over a million unemployed citizens, and even the positive job news is fleeting.

Despite a boost from the Hollywood job machine, the state unemployment rate ticked up in September, when more than 1 million Californians were looking for work, the first time that benchmark had been breached in nearly three years.

Jobs were added to the economy during the month but nearly half were in Los Angeles in the entertainment sector, according to figures released by the government Friday. Producers have been racing to get movies and television shows in the can in anticipation of a writers strike.

And Hollywood probably won’t deliver a happy ending. Strike or no, when the shows and movies are finished, many of those jobs will evaporate.

And it looks more like strike than no, as the WGA overwhelmingly voted to authorize a strike, by a 90%-10% margin.  That could happen as soon as Halloween.  Most studios aren’t signing writers to any future deals right now, in anticipation of a strike.  And the contracts of the Screen Actors Guild and the Director’s Guild are up next summer.

Besides meaning a lot of crappy reality shows coming to a TV screen near you, this means a great deal of production personnel out of work.  And that just adds to the strain on the economy right now.

Esmael Adibi, an economist at Chapman University, said it was important to note that payroll job growth had slowed to 1.1% in September from 1.6% in January and that beyond construction and financial services, the professional business services sector jettisoned jobs in September.

“Every indication is the weakness is becoming more broad-based,” he said. “Retailers are getting nervous about consumer spending, and clearly they are not adding to the employment base. The job machine is getting tired.”

The Wilkes Trial: Just A Preview For The Lewis Indictment?

Josh Marshall is puzzled by the defense strategy employed by celebrilawyer Mark Geragos for corrupt defense contractor Brent Wilkes.  So far he’s called to the stand exactly one witness, who pretty much just called Wilkes a nice guy.  That hardly refutes the voluminous amounts of evidence showing Wilkes’ multiple bribery schemes.

So what’s the strategy?  Perhaps Geragos is hanging Wilkes out as a possible flipper for a bigger fish:

The only logic I can see to this is based on something a lawyer friend told me. If Wilkes tries to push an ‘everybody does it’ too hard at trial then he’s locked himself to a set of facts that will make it a lot harder for him to turn around and cut a deal in exchange for serving up Bill Lowery and Rep. Lewis (R-CA).

That makes sense, I guess. Though I think I need to guard against a professional investment in having it having it be true since Wilkes serving up these two jokers would be a veritable festival of muck, something akin to taking a pin to a muck balloon. But in that case, why’d he go to trial in the first place? Something about the whole thing just doesn’t fit to me.

Me neither.  But we do know that Lewis is getting nervous about further investigation, because his staffer just told the Justice Department to go eat a fig.

According to RollCall, a former staffer for the House Appropriations Committee that worked for then Chairman Jerry Lewis said he intends to defy a federal subpoena he was served today from the US District Court for the Central District in California…

The staffer, Greg Lasker, is trying to hide behind the “speech and debate” clause of the Constitution and claim that the subpoena is not consistent with the “rights and privileges of the House.”  I guess it’s a lead-by-example thing, the President and his staff doesn’t see any need to comply with subpoenas, so why should Lasker?

After months of dormancy, the new US Attorney in Los Angeles, Thomas O’Brien, appears to have ramped up the Lewis investigation.  Stay tuned…

(in other news, Duke Cunningham is a complete idiot)

Getting Ugly Over Health Care Non-Solutions

So after being peppered with criticism from both term limits groups and the California Nurses Association, the Speaker’s office has chosen which group to strike back at: the nurses, of course, using the exact same standard of judgment that they called a “smear job” when it was used against Nuñez.

This is an argument over improving the delivery and cost of health care, and there’s plenty of ideological rigidity to go around.  What started as a promising “year of health care reform” has devolved into putative allies arguing about how much money the other spends on hotel rooms.  Behind the mere gaining of political points is a serious debate about how to best allow all California citizens, not just the ones with full-time employment (us freelancers need health care too), the highest quality affordable health care they can manage.  And the real truth of the matter, the one that nobody really wants to talk about, is that none of these state-based plans, by definition, have any hope of working and have serious potential consequences, besides.  I think that’s why everyone’s getting so mad at one another, because it’s easier to do so than to face the facts.

We’ve got all these great universal bills passing at the state level, and I’m here to tell you that, well, they are pretty great, but they’re not going to work. It didn’t work in Washington State, when they tried it, and the insurers first jacked up the premiums, and then moved out of the state in order to kill the model. It didn’t work in Hawaii, which saw an economic downturn move more people onto their subsidies exactly as the state’s revenues dropped. It didn’t work in Tennessee, where the Democratic governor, Phil Bredesen, upon killing off Tenncare and leaving 300,000 people uninsured, told his state that, “I say to you with a clear heart that I’ve tried everything. There is no big lump of federal money that will make the problem go away.” Similar plans failed in Oregon, in Massachusetts, and many other states.

The plans fall for a few small reasons, and one big one. The big one is that states don’t have the fiscal stability to run universal health care. 49 of 50 states cant deficit spend. That means that when the state goes into recession and more people need subsidies and the revenues to give them don’t exist the state can’t borrow the money. So they dismantle the program. It’s happened time and time again — in some states, like Oregon, more than once.

Moreover, you don’t really want this being a state-run solution. As a stopgap, increasing coverage through state plans is worthwhile, but health care reform is more than access – it’s actual reform to bring down costs, which are, at the end of the day, the biggest problem in the system. And the states don’t have the regulatory authority, the money, or, save in a few cases, the size to do that. I simply don’t trust them to fundamentally reform the system.

California is obviously one state that has the size, and certainly could float ever more bonds to spend the necessary money.  But we’re almost certainly on the cusp of a new recession, and the combination of massive debt passed on to grandkids and a pay-to-play system that still reigns supreme in Sacramento is unpalatable to reform.

I repsect the efforts of groups like Physicians for a Naitonal Health Plan, who have studied the issue and recommended some of the best possible solutions.  But that word “national” is hard to get around; it’s the only way to create the real economies of scale and managed risk necessary for a solution.  I believe in health care for everyone, not simply in red states or blue states.  As Ezra Klein notes,

You know, whenever you talk about the state reforms, you always hear the old Brandeis quote about the “laboratories of democracy.” But there’s another Brandeis saying that I think is more applicable: “If we would guide by the light of reason,” he said, “we must let our minds be bold.” And that’s what I’m asking: Be bold. Because nothing else will, in the long term, work.

Lights Out L.A. (and SF)

(Added SF to the title. Same time, same day. – promoted by Brian Leubitz)

This is a quickie.  My car insurance provider noted in an email that tomorrow night is Lights Out LA, an event designed to conserve energy and raise awareness.  Between 8-9 pm, LA residents are encouraged to turn off all non-essential lights in a bid to save enough energy to power 2,500 homes for a full year.  The Hollywood sign, City Hall, and most government buildings will go dark.  I believe something like this was attempted in San Francisco earlier this year.  It’s exciting that Los Angeles is attempting to raise awareness of climate change and promote conservation.  You can even get a free beeswaz candle to use at this website.

My only issue is how to square this with the fact that it’ll be happening in the fourth quarter of the Michigan football game.  I’ll get out my transistor radio, I guess.

CA-04: The Cat Claws Are Out

Wow, Doolittle’s getting it from members of his own party now.

Political pressure on GOP Rep. John Doolittle grew Wednesday as a fellow California House Republican said it would be best if Doolittle didn’t run for re-election.

GOP Rep. John Campbell of Orange County became the first House member to say publicly Wednesday what other lawmakers and aides are saying privately – that Doolittle should step aside and not run for re-election.

“I am very concerned about the situation in that district and our ability to comfortably hold what is a safe Republican district,” Campbell said in an interview with The Associated Press.

“Certainly the polling shows that he’s in a difficult position and I do think it would be best if he didn’t seek re-election,” Campbell said.

Here’s the good news: Doolittle’s response.

Doolittle was defiant in a written statement responding to Campbell’s comments.

“I hope John Campbell never has to experience what Julie and I have been going through the past 3 and a quarter years,” he said. “If he ever does, he will truly understand how frustrating it can be for people to attack your honor and integrity.”

And the chair of the Republican delegation in California, himself a target in 2008, came running to Doolittle’s aid:

The head of the California Republican House delegation, Rep. David Dreier, R-San Dimas, offered words of support Wednesday.

“It’s up to John Doolittle and John Doolittle says he’s running for re-election,” Dreier said. “And obviously he’s got lots of challenges with which he’s trying to deal, but he’s a good, hardworking member and we’ll see what happens. It’s very early on.”

Expect “Dreier and Doolittle: Perfect Together” to come up in CA-26 messaging.

I love “Republicans in disarray” stories, don’t you?

Try Getting This Image Out Of Your Memory

Ick.

A prostitute whom prosecutors say a defense contractor provided to former Rep. Randy “Duke” Cunningham testified Wednesday that the congressman fed her grapes as she sat naked in a hot tub before they headed to a bedroom at a Hawaiian resort.

Is dry heaving due to something I read that’s not work-related on company time covered on my group plan?

(This came out in the Brent Wilkes trial, by the way, as just one of the gifts offered in bribe from the defense contractor to members of Congress.  But if you’re reading this far, you have an AMAZINGLY strong stomach.)

Six CA Republicans With Under $250K In Their War Chests

This is almost a placeholder diary so I can get to it later in my monthly roundup, but this diary at Open Left shows the very real opportunity available in California this time around.  Six Congressional Rpublicans who are running for re-election have less than $250,000 in cash on hand.  The NRCC, the campaign arm for the House GOP, is spread thin by retirements and challenges.  So many incumbents are going to be on their own in 2008.  And saying “Hello, I’m a Republican member of Congress” just doesn’t rake in the money like it used to.  Here’s the list:

John Doolittle, CA-04
George Radanovich, CA-19
Ken Calvert, CA-44
Mary Bono, CA-45
John Campbell, CA-48
Darrell Issa, CA-49

I can add to this the fact that Gary Miller only raised a paltry $40,000 last quarter.  And Doolittle’s problems are well-documented.

Unfortunately, our Democrats statewide haven’t fully stepped up.  Two of these incumbents (Radanovich, Issa) don’t have challengers yet, and Mary Bono just got one in Paul Clay.  But I would hope that Art Torres and the team would wake up to the fact that there are opportunities all over the map, in places that would significantly help down-ballot races as well.

Budget This

There’s a certain irrelevancy to all of the back-slapping out of Sacramento for their presiding over a “fiscally sound budget” when you read stories like this:

Sales of houses and condominiums in the most populous Southern California counties fell 29.9 percent from the previous month and 48.5 percent from a year earlier, DataQuick Information Systems said on Tuesday.

The report covers the counties of Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura and showed a total of 12,455 new and existing homes and condos sold in September, the lowest since the company began recording the data in 1988.

Without being alarmist… aw, hell, I’m going to be alarmist.  The real estate market was the only thing propping up the state’s economy.  There’s an attempt to try and trade one bubble for another and re-create the dot-com speculation circa 1998, but that’ll only go so far, too, and that crash will be just as vicious as the first one.  And looming strikes in almost every aspect of the entertainment industry in LA will make life difficult as well.  It’s through little fault of state government, but you can see a pretty clear path to recession now.

UPDATE: On a somewhat related note, you can’t raise a family in California anymore.

The CBP analysis estimates that in order to pay basic bills in California:
A single-parent family needs an annual income of $59,732, equivalent to an hourly wage of $28.72.
A two-parent family with one employed parent needs an annual income of $50,383, equivalent to an hourly wage of $24.22.
A family with two working parents needs an annual income of $72,343, equivalent to each parent working full-time for an hourly wage of $17.39.
A single adult needs an annual income of $28,336, equivalent to an hourly wage of $13.62.

With Numbers Like Those, I’d Ask Him To Leave Too

Faced with a 100:1 cash disadvantage for his re-election bid, GOP leaders are trying to show John Doolittle the door.

Muck-encrusted Rep. John Doolittle (R-CA) is in so much political trouble that GOP leaders are convinced he has no chance of winning reelection next year and are privately urging him to retire, according to Roll Call (sub. reqd.) […]

According to the paper, House GOP leaders held off on urging Doolittle to drop his reelection plans, hoping that he’d voluntarily decide to retire over the summer. But when Doolittle pressed ahead with reelection efforts, GOP leaders — worried about losing an otherwise safe seat — privately sat down with him and told him the game’s over. No word on what Doolittle will do yet.

Of course, GOP leaders told Larry Craig the game’s over, so that’s not a guarantee.

Doolittle has maintained his innocence and his intent to press forward with re-election plans.  And that stubbornness intestinal fortitude should be encouraged!