Lynn Parramore

 

Recent Posts by Lynn Parramore

  • Reptilian Cotillion: Financiers Party While Economy Plunges

    Aug 19, 2011Lynn Parramore

    A full moon rises over the Hamptons as the crocs come out to play.

    While the world economy trembles and their fellow Americans face blown-up 401Ks, foreclosure threats, and fruitless job searches, financiers are embracing our current feed-the-rich/screw-the-rest mentality with renewed zest.

    A full moon rises over the Hamptons as the crocs come out to play.

    While the world economy trembles and their fellow Americans face blown-up 401Ks, foreclosure threats, and fruitless job searches, financiers are embracing our current feed-the-rich/screw-the-rest mentality with renewed zest.

    The NYT reports that last Saturday night, in the fabled NYC frolicking ground of Southampton, billionaire financier Leon D. Black threw himself a jaw-droppingly expensive 60th birthday bash. Two hundred well-heeled guests reclined on cushions Satyricon-style nibbling seared fois gras as Sir Elton John -- earning a cool million bucks  -- sang 'Crocodile Rock.' Joining this Reptilian Cotillion were Martha Stewart and fashion designer Vera Wang, who partied alongside some of Wall Street's most notorious denizens, including junk-bond pioneer Michael Milken, Blackstone's buyout king Stephen A. Schwarzman (who became a symbol of greed when he threw his own $3 million b-day bash back in bubblicious 2007), and Lloyd "God's Work" Blankfein of Goldman Sachs.

    It’s free! Sign up to have the Daily Digest, a witty take on the morning’s key headlines, delivered straight to your inbox.

    Mayor Bloomberg was among the revelers, as was NY Senator Charles Schumer, who must have been feeling grateful for his host's generous political contributions as he soaked in the expansive view of moonlit Schinnecock Bay.

    A fellow like Leon Black needs all the influential friends he can get because, like other private equity tycoons, he enjoys a ridiculously low 15% tax rate on "carried interest" (the share of profits that hedge fund managers get as part of their stratospheric compensation). Chances are the persons who, say, cook for Mr. Black or landscape his yard pay something more like 35% in taxes for the money they earn doing actual work.

    In fact, if we got rid of this George W. Bush giveaway, we'd have $21 billion over the next decade. That's enough money to pay a million jobless Americans $20,000 for a year's work doing productive things like rebuilding schools or repairing bridges. That would be a lot more helpful to our country than proliferating casinos, which is Black's line of work. His Apollo Global Management manages $72 billion in assets, including the largest gambling operation on Earth, Caesars Entertainment. He's also into plastics.

    Black, incidentally, is the 160th richest person in the United States. He is also the son of Eli M. Black, once head of the United Brands Company, whose career presents a tragic tale that we would do well to learn from a time of unchecked excess.

    Lynn Parramore is the editor of New Deal 2.0, Media Fellow and Deputy Director of Communications at the Roosevelt Institute, co-founder of Recessionwire, and the author of Reading the Sphinx.

    **Follow Lynn Parramore on Twitter at http://www.twitter.com/lynnparramore

    Share This

  • Getting What You Pay For: Super Committee's Super-Close Ties to Banking & Finance

    Aug 16, 2011Lynn Parramore

    Quelle surprise! Bankers and financiers will be sitting pretty when the “Super Committee” decides where spending gets slashed over the next decade.

    This just in: The folks at Maplight have released some disturbing numbers on who has been the most generous to the 12 members of the newly-formed Joint Select Committee on Deficit Reduction, fondly known as the "Super Committee."

    Quelle surprise! Bankers and financiers will be sitting pretty when the “Super Committee” decides where spending gets slashed over the next decade.

    This just in: The folks at Maplight have released some disturbing numbers on who has been the most generous to the 12 members of the newly-formed Joint Select Committee on Deficit Reduction, fondly known as the "Super Committee."

    To recap, the Committee was formed by the last-minute debt ceiling increase deal reached by Congress and the Prez earlier this month. It's comprised of the following senators: Pat Toomey (R-Pa.),  Jon Kyl (R-Ariz.),  Rob Portman (R-Ohio),  Patty Murray (D-Wash.),  John Kerry (D-Mass.), and Max Baucus (D-Mont.) and Reps.  Jeb Hensarling (R-Texas),  Fred Upton (R-Mich.),  Dave Camp (R-Mich.),  Chris Van Hollen (D-Md.), Xavier Becerra (D-Calif.), and  Jim Clyburn (D-S.C.).

    Maplight reports that the 10 biggest organization contributors (this includes PACs and Employees) to Super Committee Members are...

    Club for Growth $990,066

    Microsoft Corp. $810,100

    University of California $629,495

    Goldman Sachs $592,684

    EMILY's List $586,835

    Citigroup Inc. $561,081

    JPMorgan Chase & Co. $494,316

    Bank of America $349,566

    Skadden, Arps, et al. $347,356

    General Electric $340,935

    Hmm. Club for Growth, the biggest spender, is a rabid anti-tax and anti-government group boasting 9,000 members and dominated by Wall Street financiers and executives. And then we naturally find the big banks --the Goldmans, the Citigroups -- filling out the list. Guess how these folks feel about paying their fair share in taxes? The 6 Republicans on the Committee have sworn to block any tax increases, even on the banks that helped bring on the 2008 crash that caused this freaking deficit in the first place! But obviously their feelings take precedence over those of the American public, a quarter of whom are out of a job, underwater with the mortgage, or in foreclosure.

    As Roosevelt Institute Senior Fellow Thomas Ferguson pointed out yesterday on this blog:

    Congress is listening primarily to those who contribute political money, not the public. As a political slogan “No new taxes” was around long before the Tea Party. It is the mantra not of the public, but of a huge swath of super-rich Americans.

    That's why when it comes time for action, squeezing pennies from seniors and sick people and socking it to working Americans will be on the table. Raising revenues from fatcats whose taxes are lower than they've been since Hoover was in office will not.

    That's democracy in America, 21st-century style.

    Lynn Parramore is the editor of New Deal 2.0, Media Fellow and Deputy Director of Communications at the Roosevelt Institute, co-founder of Recessionwire, and the author of Reading the Sphinx.

    **Follow Lynn Parramore on Twitter at http://www.twitter.com/lynnparramore

    Share This

  • The God of Tea Party Freshmen Serves the Rich, Not the Poor

    Aug 1, 2011Lynn Parramore

    How a prince of Hell took a job on Capitol Hill.

    Every once in a while, you come across a news story that's more than a story. It's a revelation.

    How a prince of Hell took a job on Capitol Hill.

    Every once in a while, you come across a news story that's more than a story. It's a revelation.

    On Sunday morning, that's what greeted readers of the Washington Post searching for insight into the Great Debt Showdown. The first two thirds of a piece by David A. Farenthold and Dan Balz is a familiar recitation of the tribulations of Speaker John Boehner as he struggled with defiant new members of the House Republican conference. Nothing earth-shattering there. But then, out jumps a nugget of naked truth that simply takes your breath away. It concerns the god served by Tea Party-backed GOP members who have held the country hostage in a sham debt-ceiling crisis. Keep in mind that the passage below is not a parody:

    Not even gentle persuasion could overcome higher powers Thursday. As Boehner was in his meetings, three freshman Republicans from South Carolina were in the House chapel nearby, in quiet discussion and in prayer. Reps. Mick Mulvaney, Tim Scott and Jeff Duncan wanted a stronger provision to guarantee a balanced-budget amendment and knew they would be lobbied furiously in the hours to come.

    At one point, Duncan said, Mulvaney picked up a Bible and read a verse from Proverbs 22: "The rich ruleth over the poor, and the borrower is servant to the lender."

    "It's telling me to really be bold, to really fight for structural changes," Duncan said.

    "Mulvaney snapped the Bible closed. And I said, ‘Guys, that's all I need to see,' " Duncan said. "Tim said, ‘Yep.' And we stood up and walked out."

    These gentlemen would like for us to construe their prayerful moment as spiritual concern for suffering Americans. That's a tough sell, because the god worshiped by these devout South Carolina congressmen is not Yahweh. It is not the deity served by Jesus, he of throw-the-money-lenders-out-of-the-temple fame.

    The god of the Tea Party freshmen is certainly ancient and powerful. He was last employed as one of the chief princes of Hell. And his name is Mammon. On leave from his post in Hell, Mammon is doing a bit of temp work. The avatar of wealth and greed has rolled up his sleeves and taken up residence in the People's House, where he currently advises GOP freshmen on policies contrived to do his bidding.

    Now, if Congressman Mulvaney had not shut his Bible so quickly, he might have come across another interesting passage, this one from the Gospel of Matthew.

    No one can serve two masters, for either he will hate the one and love the other; or else he will be devoted to one and despise the other. You can not serve both God and Mammon.

    —Matthew 6:19-21,24

    But there was really no need for the freshmen to read this passage. Mulvaney, Scott and Duncan know  who they are really serving. They must understand that the budget cuts they have fought for tooth and nail will take money from the most vulnerable members of our society and fill the coffers of the rich -- though you wouldn't necessarily think they'd invoke the Christian Bible in support of their trickle-up economics.

    It’s free! Sign up to have the Daily Digest, a witty take on the morning’s key headlines, delivered straight to your inbox.

    But Mammon's power has been known to be irresistible. Those who fall under his spell frequently turn their backs on justice and become the fawning lapdogs of the rich (peruse the Koch-Mulvaney connections here).

    Today we learn that the deal currently in the works to avert an historic U.S. default would require Americans rendered jobless by the financial crash caused by Wall Street to suffer even as bankers take in record-breaking profits. Medicare would be placed on the chopping block. Tax loopholes for the wealthy would remain open. The economy would be further weakened. Pain would be inflicted on just about everybody but the privileged and the powerful.

    The God of Greed can look upon his work with satisfaction. His troops are delivering. The angels have fled. He knows his kingdom is coming. And Mulvaney, Scott, and Duncan have secured their place in it.

    Lynn Parramore is the editor of New Deal 2.0, Media Fellow and Deputy Director of Communications at the Roosevelt Institute, co-founder of Recessionwire, and the author of Reading the Sphinx.

    **Follow Lynn Parramore on Twitter at http://www.twitter.com/lynnparramore

    Share This

  • Hamptons Institute Serves Up Menu of Fresh Ideas

    Jul 18, 2011Lynn Parramore

    idea 150The Hamptons Institute is the best beach brainfood the East End has ever seen.

    idea 150The Hamptons Institute is the best beach brainfood the East End has ever seen.

    On a pinch-me perfect summer weekend, people hungry for fresh ideas and discussion bypassed the beach and gathered in East Hampton for the 3rd installment of the Hamptons Institute, a symposium put on by the Roosevelt Institute in collaboration with Guild Hall, the East End's premier cultural center. Roosevelt Institute Senior Fellow Ellen Chesler worked with Guild Hall to create a smorgasbord of intellectual nourishment, with panels topics ranging from lighter fare, like how to produce a Broadway show, to the most thorny economic and political issues of the moment.

    On Saturday, two panels delved into subjects fit to challenge the most pointy-headed of pundits.

    The morning panel, “The Outlook for the Middle East,” was moderated by the brilliant Karen Greenberg, executive director of NYU's Center on Law and Security. Thought leaders Daniel Yergin, Jane Harman, and Hisham Melhem joined her in a discussion of the ever-changing situation in the Middle East.

    Melhem, a Lebanese journalist, offered one of the weekend's most memorable (and sobering) lines: "The Arab Spring is morphing into a Hot Summer and a Dark Winter." He reminded us of the complexity of the region and the nuance required for discussion and framing of issues. For example, he suggested that the US would have been better served by framing the response to 9/11 as war on Al-Qaeda, rather than a war on terror or an implied battle against Islam. Melhem noted that politics informed by religious values is not necessarily bad. What you don't want, he observed, were theocracies. Melhem suggested that US should push societies in the Middle East to open the space for various parts to compete and debate, citing the examples of Egypt and Tunisia, whose relatively open societies permit robust public discussion in contrast to countries like Bahrain which currently make this untenable. He expressed grave concern that the Arab world is currently bereft of strong leaders with vision.

    Former Congresswoman Jane Harman, who now runs a D.C.-based think thank, discussed whether the US government was prepared or caught off guard by the Arab Spring. She deplored America's "incredible ignorance about Arab societies" which pervades Congress, the administration, and the American public. Harman pointed out that "Yemen is ground zero for threats against us" and commented on the potential instability of a region where people are running out of oil and water, and increasingly driven to hopelessness. But she also put faith in the idea of a "counter-jihad" happening throughout the region -- a trend in which Muslims are thought to be rising up against Al-Qaeda, hard-lined types.  Referring to Iran as the 'Big Enchilada" of the Middle East, she gave the view that economic sanctions are working, as evidenced by the fact that Ahmadinejad is in trouble. Harman further noted that there are good opportunities "to change Iranian policy without military intervention."  She added that the "clock is ticking against Israel as a Jewish state," noting the decreasing number of reliable friends not only in the neighborhood but in Europe as well.

    Author Dan Yergin discussed the role of the resources in the region, noting that oil and natural gas issues loom very large.  He observed that the interplay between countries that have oil and natural gas and those that don't will become increasingly important, and warned that food prices in the region are also huge problem. "Anger is not just about lack of participation," said Yergin, "but economic hardship." He saw the future of the region as one in which ossified systems become dynamic. But he noted that economic challenges were of tremendous concern.

    It’s free! Sign up to have the Daily Digest, a witty take on the morning’s key headlines, delivered straight to your inbox.

    The afternoon panel, "Perspectives on the Obama Presidency" was moderated by Lynn Sherr and focused on questions that have been plaguing everyone: Has Obama been an effective president? Will he be reelected?

    Author Bob Caro, a biographer of Lyndon Johnson, reminded the audience of how LBJ got things done, in contrast to Obama: He did whatever it took to get votes, from bribing to cajoling to threatening.  Caro saw Obama's biggest challenge for reelection as the fact that there are really only 4 or 5 states in play -- the Rust Belt and Florida -- and that they happened to be areas especially hard hit by unemployment. He gave the view that Obama would have a "tremendous problem even being elected by default" because of those states.

    The New Yorker's George Packer mused on the oft-cited difference between Obama the Candidate and Obama the President.  Observing that Obama was not like Roosevelt or a figure who would fit the New Deal era, Packer wondered how he might have flourished in an earlier, progressive time when moralizing and lofty speeches were in vogue, and "when an appeal to civic-mindedness and political reform had a real audience in the middle classes". Packer observed that Obama is "a reasonable man speaking into a hurricane",  characterizing the President as both behind and ahead of his time. Introducing a little-discussed theme, Packer made the point that Obama likely saw his job as managing an America in decline. On the challenges of reelection, Packer agreed that unemployment was a doozy, along with Obama's failure to connect to the public. "How many phrases can you remember from his presidency?" asked Packer. Nevertheless, Packer predicted that Obama will win in 2012 by default. He gave the opinion that health care was the best thing about Obama's first term.

    Historian HW Brands was the most inclined to see the bright side of Obama's presidency, maintaining that he was doing about as well as any president could under the circumstances. But in discussing the hopes that Obama would usher  in a New Deal, he observed that "it wasn't going to happen because things were bad, but not bad enough." Talking about the stimulus, he reminded the audience that in politics, "you don't get credit for what didn't happen".  Brands was clear that Obama's would not be a transformational  presidency. But he proposed that after the debt ceiling debate, Obama would be able to move from governing to campaigning, which is his forte. In Brands' view, the best thing this President did was to "focus the country on long-term issues like the deficit."

    All this sounds like a lot to have on your plate on a summer Saturday. But judging from the lively conversations that bubbled up among attendees, this year's Hamptons Institute only whetted appetites for more.

    Lynn Parramore is the editor of New Deal 2.0, Media Fellow at the Roosevelt Institute, co-founder of Recessionwire, and the author of Reading the Sphinx.

    **Follow Lynn Parramore on Twitter at http://www.twitter.com/lynnparramore

    Share This

  • No Jobs + Shredded Safety Net = Disaster for Women

    Jul 13, 2011Lynn Parramore

    Women face a double whammy in the jobs crisis and proposals to cut Social Security and Medicare. That's a catastrophe in the making that will harm the entire economy.

    Women face a double whammy in the jobs crisis and proposals to cut Social Security and Medicare. That's a catastrophe in the making that will harm the entire economy.

    The Pew study released last week showed clearly that the so-called 'mancession' has morphed into a 'hecovery' in which men are outpacing women in finding employment. Job trends during a tepid recovery have favored men over women in all but one of the 16 major economic sectors -- a sharp contrast to other modern recessions, in which women either gained jobs faster in the recovery or gained them at a similar rate to men.

    A little bit of the gender gap can be explained by the fact that women have been walloped by recent rounds of government layoffs. The first great jobs hemorrhage was largely in the private sector and whacked men the hardest. But the second wave of layoffs in the public sector has had a greater impact on women, who hold the majority of teaching jobs.

    But this doesn't nearly explain the size of the gap, which has emerged as the Rosetta Stone of the unemployment crisis. Experts and journalists are scrambling for answers.  Slate's Annie Lowrey speculates that perhaps men are being less picky. Maybe they're agreeing to wage and benefit cuts, taking menial positions, part-time work, or jobs outside their traditional purview, like nursing. She also wonders if there could be hiring discrimination afoot. Given the kind of inflammatory rhetoric coming from people like Michael Barone of the New York Post, who suggests that men are "hustling to acquire new skills and learn how to do different jobs, while many women sit back and accept whatever the macroeconomy doles out" -- that one doesn't seem implausible.

    But we can't say for sure yet. What we do know is that while over the past few decades women have greatly expanded their power in the labor market, they're now losing ground in the wake of the financial meltdown. That's bad.

    This is worse: The current attacks on the social safety net coming from Washington disproportionately hurt women. Under the guise of the sham debt-ceiling crisis, we hear of possible cuts to Social Security and Medicare --  programs that millions of women rely on.

    Even though female participation in the workforce has jumped since the 1950s, the percentage of working age women who have jobs seems to have leveled off at around 70%, which is far below the rates for working age men (over 90 percent). Why is that? Well, until there is some freaky sci-fi breakthrough, only women can have babies. And they still bear the brunt of childcare. So most mothers still leave the workforce temporarily in order to give birth, while some leave for years to raise small children. This is why they generally receive smaller Social Security checks than men who have worked steadily. On the other hand, women live longer, and often have special burdens caring for children and grandchildren. So any decrease in Social Security -- call it chained CPI or whatever you like -- is especially injurious to women. (There is something ironic in this, given that it was a woman who brought us Social Security in the first place -- Frances Perkins, FDR's Secretary of Labor!)

    Join us at the Hamptons Institute July 15-17 to hear distinguished speakers take on today’s most pressing issues!

    A few more facts: women represent two-thirds of retirees over 85. The average woman receives about $1,000 a month from Social Security. Half of women aged 65 and older rely on Social Security for at least 80 percent of their income. By the age of 85, 81 percent of women are unmarried. These are the women who would be hit hardest by schemes like the chained CPI.

    Because women receive lower Social Security benefits, Medicare is particularly critical for them. Women comprise 57% of the Medicare population, and also make up three quarters of our most vulnerable Medicare beneficiaries -- those living in nursing homes or other long term care facilities.  Long-term care isn't cheap, and often the savings of such women run out. Then they have to turn to Medicaid. But of course, there's also plenty of talk of significant changes to the Medicaid system! There are many ways we could bring down the costs of health care, such as allowing the government negotiate for better prescription drug prices. But this fight was never really about bringing down costs for ordinary people, was it?

    So what will happen to women who can't find jobs and may see the social safety net torn away? Back before the Social Security system, elderly women would often find themselves in poor houses or poor farms. These facilities, built for the destitute, were known for their minimal and often inhumane conditions. Before the New Deal, aging Americans lived in terror of ending up in such places if there were no family members to contribute to their upkeep. Nowadays, people have fewer children and live longer, so if the social safety nets are slashed, the likelihood of destitution will be even greater. The picture becomes quite Dickensian.

    Women are in many ways the key to our economic well-being and recovery. A disaster for them is a disaster for everyone. Nancy Pelosi and other female leaders in Washington have started to make noise, and that's a good thing. The warning has been issued: throwing women under the bus to pay for a deficit caused by a banking crisis, out of control military spending, and health care priorities that benefit big Pharma is not acceptable.

    Lynn Parramore is the editor of New Deal 2.0, Media Fellow at the Roosevelt Institute, co-founder of Recessionwire, and the author of Reading the Sphinx.

    **Follow Lynn Parramore on Twitter at http://www.twitter.com/lynnparramore

    Share This

Pages