Fast-food workers prepare to escalate wage demands
JULY 26, 2014 LAST UPDATED: SATURDAY, JULY 26, 2014, 1:21 AM
THE ASSOCIATED PRESS
THE RECORD
* Fast-food workers will be asked do “whatever it takes” to win $15 an hour and a union
CHICAGO — Fast-food employees say they’re prepared to escalate their campaign for higher wages and union representation, starting with a national convention in suburban Chicago, where more than 1,000 workers are expected to discuss the future of the effort that has spread to dozens of cities in less than two years.
About 1,300 workers were to attend sessions Friday and today at an expo center in Villa Park, Illinois, where they’ll be asked to do “whatever it takes” to win $15-an-hour wages and a union, said Kendall Fells, organizing director of the national effort and a representative of the Service Employees International Union.
The union has been providing financial and organizational support to the fast-food protests that began in late 2012 in New York City and have included daylong strikes and a protest outside this year’s McDonald’s Corp. shareholder meeting that resulted in more than 130 arrests.
“We want to talk about building leadership, power and doing whatever it takes, depending on what city they’re in and what the moment calls for,” said Fells, adding that the ramped-up actions will be “more high profile” and could include everything from civil disobedience to intensified efforts to organize workers.
– See more at: https://www.northjersey.com/news/business/wage-battle-heating-up-1.1057683#sthash.MNFW2WJf.dpuf
Tag: Obamanomics
Businesses Don’t Leave the U.S. Because of Lack of Patriotism
Businesses Don’t Leave the U.S. Because of Lack of Patriotism
Curtis Dubay / @CurtisDubay / July 24, 2014
Curtis S. Dubay, a leading expert on tax reform, income tax, corporate tax, international taxes, and the estate tax, is a research fellow in tax and economic policy at The Heritage Foundation.
President Obama will deliver a speech today railing against corporate inversions. That is the process whereby a U.S. business merges with a foreign business and moves the new joint business’s headquarters to the foreign country. Inversions have been a hot topic recently because well-known businesses such as Walgreens, Pfizer, and Medtronic have been looking to engage in the process.
The president, like others before him, decried this practice because he believes it displays a lack of patriotism. However, inversions have nothing to do with love of country. They are all about U.S. businesses keeping up with their global competition.
When a U.S. business inverts it continues paying the same amount of tax it always has on its U.S. income. Any business, no matter where headquartered, pays the 35 percent U.S. corporate tax rate – which is the highest corporate tax rate in the world — on income earned within our borders.
The policy causing all the problems is the extra tax the U.S. levies on the income its businesses earn in foreign countries. This is known as a worldwide tax system. The U.S. is the only industrialized country that taxes the foreign earnings of its businesses.
The worldwide system makes it difficult for U.S. businesses to compete with their international brethren because those businesses don’t face an extra layer of tax when they invest in a growing new market. The extra tax U.S. businesses face makes certain investments unattractive for U.S. businesses that remain attractive to their competitors.
As I explained in a recent paper:
Foreign businesses unencumbered by the worldwide U.S. tax system are free to make investments that the U.S. worldwide tax system makes unprofitable for U.S. businesses. In these situations, U.S. businesses decline in standing compared with their foreign competitors because foreign businesses enjoy increased earnings and enhanced global efficiency from making investments that the U.S. worldwide system forces U.S. businesses to forgo.
If U.S. businesses don’t do anything to remedy this disparity, their relative profitability will fall as they take a pass on more and more growth opportunities their foreign competitors eagerly chase. Eventually this would put the viability of their businesses in jeopardy.
The preferred liberal fix to this problem is to make it harder for businesses to invert by requiring foreign shareholders to own a larger portion of a merged business (50 percent compared to 20 percent under current law) before the headquarters can be moved from the U.S. This change would only make matters worse.
Business will still find ways to remain competitive, such as by selling themselves outright to foreign competition. Raising the threshold could backfire by sending the message to businesses that the U.S. tax system will remain uncompetitive and could become more hostile to investment, causing more to want to flee our shores.
The only fix for this problem is tax reform that reduces the corporate tax rate and stops taxing the foreign income of U.S. businesses. Instead of demonizing U.S. businesses that are trying to do best by their shareholders, employees, and customers, Obama would better serve the country by spending his time working with Congress to make tax reform a reality.
Corporate Tax Inversions Made Simple
Corporate Tax Inversions Made Simple
By Chris Edwards
Numerous responses to my article in the New York Times yesterday about corporate tax inversions indicated a lack of understanding. Related articles by Levin, Johnston, and Huang similarly suggested that further enlightenment is needed.
The following chart should simplify the issue for NYT readers, columnists, and policymakers.
All data from KPMG. Global average is for 134 countries.
Voters See A More Divided Nation; GOPers More Enthusiastic to Vote
Voters See A More Divided Nation; GOPers More Enthusiastic to Vote
Tuesday, July 22, 2014
Voters strongly believe the United States is a more divided nation these days, and they think both sides are to blame. Most are also ready to do something about it at the ballot box in November.
Sixty-seven percent (67%) of Likely U.S. Voters say America is a more divided nation than it was four years ago. A new Rasmussen Reports national telephone survey finds that just seven percent (7%) think the country is less divided now, while 21% rate the level of division as about the same.(To see survey question wording, click here.)
Among voters who see more division or about the same level of it, 35% believe President Obama is to blame. But 34% point the finger at Republicans in Congress instead. Twenty-three percent (23%) say they’re both to blame. Just five percent (5%) attribute the division to something else.
Fifty-seven percent (57%) of all voters say they are more likely to vote this year than they have been in past elections. Only four percent (4%) say they are less likely to do so, while 38% rate their intention to vote as about the same as in past years.
Perhaps problematic for Democrats is that 65% of GOP voters and 55% of voters not affiliated with either major party are more likely to vote this year, compared to 53% of those in the president’s party. But that could change as the election gets nearer.
Fifty-nine percent (59%) of voters nationwide are at least somewhat confident that the candidates they vote for will steer the country in the right direction, but that includes just 19% who are Very Confident. Thirty-three percent (33%) lack that confidence, with seven percent (7%) who are Not At All Confident that their candidates will make a difference.
(Want a free daily e-mail update? If it’s in the news, it’s in our polls). Rasmussen Reports updates are also available on Twitter or Facebook.
The survey of 1,000 Likely Voters was conducted on July 17-18, 2014 by Rasmussen Reports. The margin of sampling error is +/- 3 percentage points with a 95% level of confidence. Field work for all Rasmussen Reports surveys is conducted by Pulse Opinion Research, LLC.
https://www.rasmussenreports.com/public_content/politics/general_politics/july_2014/voters_see_a_more_divided_nation_gopers_more_enthusiastic_to_vote
Affirmative Action = Discrimination Against Asians, NYC Schools Edition
Affirmative Action = Discrimination Against Asians, NYC Schools Edition
Robby Soave|Jul. 21, 2014 1:50 pm
New York City politicians—including Mayor Bill de Blasio—want to change the admissions system for the city’s nine highly-selective premiere public high schools, including nationally-renowned Stuyvesant High School. The schools currently use a single exam, the Specialized High Schools Admissions Test, to determine admittance. Less than three percent of applicants are admitted to Stuyvesant.
The problem, in the eyes of some, is that black and Latino students are increasingly underrepresented at the elite schools. So are white students. When a test score is the only criteria, it seems that Asian Americans are more likely than other racial groups to gain admission to Stuyvesant.
Is that a problem? A coalition that includes de Blasio and teachers unions says that it is, according to Bloomberg:
“I do not believe a single test should be determinative, particularly for something that is as life-changing for so many young people,” de Blasio, who would need to persuade the state Legislature to amend the law, said last week. “We have to determine what combination of measures will be fair.”
The mayor would like the schools to consider other factors—such as grades and extracurricular activities—that would theoretically give non-Asians a better chance.
https://reason.com/blog/2014/07/21/affirmative-action-discrimination-agains
US companies look to flee high US taxes
US companies look to flee high US taxes
JULY 20, 2014 LAST UPDATED: SUNDAY, JULY 20, 2014, 1:21 AM
BY TOM MURPHY
THE ASSOCIATED PRESS
THE RECORD
* Some lawmakers fear the deals, called inversions, will seriously reduce tax revenue
A growing number of U.S. companies are looking to trim their tax bills by combining operations with foreign businesses in a trend that may eventually cost the federal government billions of dollars in revenue.
Generic drug maker Mylan Inc. said last week that it will become part of a new company organized in the Netherlands in a $5.3 billion deal to acquire some of Abbott Laboratories’ generic-drug business. The deal is expected to lower Mylan’s tax rate to about 20 percent in the first full year and to the high teens after that.
The Canonsburg, Pa., company’s deal follows a path explored by several other U.S. drug makers in recent months. AbbVie Inc. has entered talks with Shire Plc. over a $53.68 billion deal that would lead to a lower tax rate and a company organized on the British island of Jersey.
But drug makers aren’t the only companies looking overseas for better tax deals.
Last month, U.S. medical device maker Medtronic Inc. said that it had agreed to buy Ireland-based competitor Covidien for $42.9 billion in cash and stock. The combined company would have executive offices in Ireland, which has a 12.5 percent corporate income tax rate. And drugstore chain Walgreen Co. — which bills itself as “America’s premier pharmacy” — also is considering a similar move with Swiss health and beauty retailer Alliance Boots.
These tax-lowering overseas deals, which are called inversions, have raised concerns among some U.S. lawmakers over the potential for lost tax revenue. But business experts say U.S. companies that find the right deal have to consider inversions due to the heavy tax burden they face back home.
– See more at: https://www.northjersey.com/news/business/overseas-acquisitions-help-u-s-companies-cut-taxes-1.1054237#sthash.GaDTjvkx.dpuf
The economy’s big mystery: Why workers are disappearing from the job market
The economy’s big mystery: Why workers are disappearing from the job market
JULY 20, 2014 LAST UPDATED: SUNDAY, JULY 20, 2014, 1:21 AM
BY ZACHARY A. GOLDFARB
THE WASHINGTON POST
THE RECORD
* Unforeseen factors could keep many Americans out of the labor force — permanently
WASHINGTON — Ever since the job market began to recover in 2010, the decline in the unemployment rate has come with a big fat asterisk. The unemployment rate has been going down, the argument goes, but largely because people have stopped looking for work. That’s why the labor force participation rate — the percentage of the population looking for a job or employed — stands at 62.8 percent, down from 66 percent before the recession. The joblessness rate, as a reminder, stands at 6.1 percent.
Now comes a new White House report, prepared by the Council of Economic Advisers, that offers fascinating insights into what might be happening in the job market. The biggest headline in the report is the least surprising. It finds that about half of the decline in participation is the result of the baby boomer generation’s beginning to retire. For years, economists have known and predicted that this would happen. It should be no reason to worry. The report also finds that a sliver of the decline in participation is simply due to the elevated unemployment rate, which is still half a point or so above normal. In all recoveries, some people opt out of looking for work while the unemployment rate is higher than normal. This, thus, is “cyclical,” and also offers little reason for concern.
But the most interesting and alarming part of the report examines what White House economists call the “residual” — the factors beyond aging and cyclicality that explain why people are disappearing from the labor force. This is what we should worry most about. It’s these people who may never return to jobs. The report finds that about a third of the decline in participation is attributable to these disappearing workers. If their exit from the labor force proves permanent, the nation’s economy could suffer for years, never achieving the growth and prosperity it once could.
What’s behind this residual is one of the big mysteries in economics today. As in why, according to the report, it emerged only in 2012. That’s right: For the first two years of the recovery, the decline in labor force participation appears to have been normal, driven by aging and temporary effects from the recession. Only later on — as the unemployment came down and the economic recovery continued — did an unusually large number of workers start to abandon the labor force.
– See more at: https://www.northjersey.com/news/business/biggest-threat-to-economy-comes-from-disappearing-workers-1.1054355#sthash.527eptbX.dpuf
Today, the political landscape is littered with earnest, well-intentioned, and often, incredibly sanctimonious liberals who insist that they are simply pursuing truth and fact regardless of ideology.
Today, the political landscape is littered with earnest, well-intentioned, and often, incredibly sanctimonious liberals who insist that they are simply pursuing truth and fact regardless of ideology.
The Dogma Business
The Goldberg File
By Jonah Goldberg
National Review
July 18, 2014
Dear Reader (including the president of the United States whenever he gets to this after dealing with many important fundraisers),
If you’ve been reading my stuff over the years, you’ll find a number of common themes (“And recycled jokes. Let’s not forget those.” — The Couch). One such theme is that liberalism hides behind seemingly value-neutral or benign language in order to advance a value-laden and not necessarily benign agenda. That was the basic idea behindThe Tyranny of Clichés. Conservatives argue as conservatives. Liberals tend to argue not so much as liberals, but in a variety of disguises, each of which tries to draw on authority unearned by liberalism itself. Indeed, the history of American liberalism can be understood as a series of costume changes. A new nominally non-ideological discipline emerges— political science, engineering, public health, psychology, environmentalism, neuroscience and, these days, various forms of data prestidigitation — and liberals flock to it. They don the latest fashionable version of the white smock and say— à la Bill Murray in Ghostbusters — “back off man, we’re scientists.” Or to be more fair, they claim to be speaking for the scientists, engineers, psychologists, and other experts. “We’re not ideologues, we go with the facts.” This game was old when Walter Lippmann came out with his Drift and Mastery. After all, Karl Marx, the Babe Ruth of this sport, had long before insisted that his shtick wasn’t opinion or even mere analysis, but a new science.
In 1962, John F. Kennedy delivered the commencement address at Yale. He explained that “political labels and ideological approaches are irrelevant to the solution” of today’s challenges. At a press conference the same year, he expanded on the idea. “Most of the problems . . . that we now face, are technical problems, are administrative problems.” These problems “deal with questions which are now beyond the comprehension of most men” and should therefore be left to the experts to settle without subjecting them to divisive democratic debate.
Today, the political landscape is littered with earnest, well-intentioned, and often, incredibly sanctimonious liberals who insist that they are simply pursuing truth and fact regardless of ideology. This, of course, remains Obama’s favorite pose. It runs through the “scientific consensus” argle-bargle on global warming. When Chris Hughes took over what has long been considered the flagship magazine of American liberalism, he ridiculously vowed that, “the journalism in these pages will strive to be free of party ideology or partisan bias.” The same conceit is behind Vox.com and “explanatory journalism,”which everyday sinks further and further into liberal Ronburgundyism. (Coming soon at Vox: “Fifteen Reasons Why San Diego Really Does Mean ‘Whale’s Vagina’ in German — And Why That Has To Change.”)
It’s Biden’s Party
Speaking of Ron Burgundyism, remember Joe Biden’s vice-presidential debate with Paul Ryan? He’d flash those teeth like a flounder that accidentally picked up a set of dentures. He’d laugh like the crazy guy on the bus who knows the driver is really following the chem trails in the sky because you can still get a Snickers bar for less than a dollar. He’d guffaw at any suggestion he or the president did anything wrong — ever— and shout “malarkey” at the idiots and knaves who thought otherwise. And, sadly, it largely worked. I’m beginning to think Biden was simply ahead of his time. So much of elite liberalism these days is little more than bluster and self-satisfied blather.
For instance, I am so disappointed in John Oliver’s HBO show, Last Week Tonight. I like Oliver’s stand-up and his stints on Community. But his approach is simply Bidenism refined. The show begins from the premise that liberal conventional wisdom is not only right but obviously so and then simply works backward to “prove it.” In Britain, populist tabloids are condemned by people of Oliver’s persuasion for simply confirming the prejudices of the working class. Last Week Tonight is a similar effort for the more upscale — and often more prejudiced — HBO demographic. He doesn’t tell his audience anything it doesn’t want to hear, he just gives them new and occasionally funny reasons to feel good about themselves. The only difference between his show and the typical MSNBC host’s is that Oliver is funny on purpose.
The Dogma Business
Anyway, I kind of wandered off from where I planned on going with all of this. For the record, I’m not saying that politicians, pundits, and other partisans should not consult the opinions of scientists and other experts. Of course they — we — should. We learn new and interesting things all of the time. What I am saying is that liberalism is constantly rebranding itself as solely an explanation of reality and it constantly needs to rebrand itself because reality keeps revealing that it isn’t.
What worries me — a lot — is that reality is coming to the rescue of liberalism. No, I don’t mean that the crooked timber of humanity has grown straight or that it now makes sense that the Pentagon hold bake sales to pay for bombers. What I mean is that progressives are quicker to seize on the political opportunities created by a changing culture.
What is commonly called “political correctness” doesn’t get the respect it deserves on the right. Sure, in the herstory of political correctness there have been womyn and cis-men who have taken their seminal ovulal ideas too far, but we should not render ourselves visually challenged to the fact that something more fundawomyntal is at work here.
Political correctness can actually be seen as an example of Hayekian spontaneous order. Society has changed, because society always changes. But modern American society has changed a lot. In a relatively short period of time, legal and cultural equality has expanded — albeit not uniformly or perfectly — to blacks, women, and gays. We are a more heterodox society in almost every way. As a result, many of our customs, norms, and terms no longer line up neatly with lived-reality. Remember customs emerge as intangible tools to solve real needs. When the real needs change, the customs must either adapt or die.
Many conservatives think political correctness forced Christianity and traditional morality to recede from public life. That is surely part of the story. But another part of the story is that political correctness emerged because Christianity and traditional morality receded. Something had to fill the void.
I wish more conservatives recognized that at least some of what passes for political correctness is an attempt to create new manners and mores for the places in life where the old ones no longer work too well. You can call it “political correctness” that Americans stopped calling black people “negroes.” But that wouldn’t make the change wrong or even objectionable. You might think it’s regrettable that homosexuality has become mainstreamed and largely de-stigmatized. But your regret doesn’t change the fact that it has happened. And well-mannered people still need to know how to show respect to people.
Identity politics is only part of the story, and not even the most important part. Medical, technological, and economic changes are almost surely far more important than changing demographics alone. A society where individuals are vastly more autonomous than they were a century ago is simply going to have different codes of conduct and manners. The telephone, television, and the car did more to liberate young people from the moral cocoon of their families and communities than any libertine intellectual fad (you can be sure that driverless cars, for instance, will change society inunimaginable ways). Democrats recognize this, which is why they’ve cynically exploited changes in family structure, female labor participation, and reproductive technology and declared that Republicans have declared war on women. It’s not remotely true, but it is effective.
Now, I don’t actually think Christianity is necessarily inadequate to the task of keeping up with the changes of contemporary society. (The pagan Roman civilization Christianity emerged from was certainly less hospitable to Christianity than America today is. You could look it up.) But Christianity, like other religions, still needs to adapt to changing times and the evolving expectations of the people. I’m nothing like an expert on such things, but it seems to me that most churches and denominations understand this. Some respond more successfully than others. But it’s hardly as if they are oblivious to the challenge of “relevance.”
My concern here is more about mainstream conservatism. I think much of what the Left offers in terms of culture creation is utter crap. But they are at least in the business of culture creation.
The New Manners
And that brings me back to where I started. I began this “news”letter talking about how liberalism hides behind seemingly non-ideological language in order to advance an ideological cause. Think of political correctness in those terms. Progressives are steadily dismantling the beautiful cathedrals of traditional manners and customs, arguing that they’re too Baroque, too antiquated. They use the sledgehammer of liberation rhetoric to destroy the old edifices, but their fidelity to liberty is purely rhetorical. In place of the old cathedrals they build supposedly functional, modern, and utilitarian codes of conduct. But these Brutalist codes are not only unlovely, they are often more prudish than traditional approaches. Like some Six Sigma seminar participants holed up in a Holiday Inn conference room, Harvard is currently gathering its finest minds to draw up the procedures for sexual conduct and consent. The end result will surely be a clipboard check-list to rival that of any Jiffy Lube manager’s in both romantic appeal and sexiness.
What I would like to see from conservatives is recognition that some of the cathedrals are outdated. But instead of arguing that they should be razed and replaced with Jacobin Temples of Reason with rites and rituals grounded in abstraction, why not argue for some long overdue updating and retrofitting? I guarantee you more women prefer a modified version of the traditional process of wooing, courting, and dating before sex than the “modern” schizophrenic system of getting drunk enough for a same-day hook up but not so inebriated to forget to get a signature on the consent form. Traditional notions of romance and respect are far better tools than the mumbo-jumbo campus feminists have to offer. The problem is that the mumbo-jumbo feminists are fighting largely uncontested.
Readers Worries about kids future
This country has undergone a seismic shift in its values in recent years. Our two main parties pretty much followed the same principals of self-reliance and hard work. One was just a little more to the left of the other, but nevertheless, the entrenched sense of American entrepreneurship shone through. Because of the fairly narrow gap in philosophies, common ground was fairly do-able in a divided Government. These last few years have seen a very dangerous move to increase support on the left by enhancing and pushing programs that encourage people to work less and even not at all, through hand-outs and a tax system where almost half the population pays no income tax. Now call me crazy, but even I would vote for the party that absolved me from paying income tax. Add to that, years of sending cryptic signals to people south of the border that we aren’t all that serious in preventing your border crossing, and it’s no wonder we are seeing droves flooding in. We no longer have a diligent media in this country. We have a media business model that caters to segments of society. The majortiy of these segments are to the left, and we therefore have a media that mostly acts as a cheerleader for this President.
I’m not sure if it’s even possible to get the psyche of this country back to where it used to be. I am truly worried about the future of my kids, and if this woman gets elected, I think 4-8 more years of this current way of thinking will be catastrophic.
Millennials Plan to Vote for Hillary Clinton in 2016; Prefer Rand Paul Among Republican Candidates
Millennials Plan to Vote for Hillary Clinton in 2016; Prefer Rand Paul Among Republican Candidates
Emily Ekins|Jul. 17, 2014 2:55 pm
Millennials like Hillary Clinton, according to the latest Reason-Rupe poll of millennials. Among likely millennial voters, 53 percent plan to vote for her if she runs for president in 2016.[1]Even though they see themselves as closer to Republican Gov. Chris Christie on economics, they perceive to be closer to Clinton on social issues. Ultimately they are planning to vote for Clinton. There is also reason to believe that social issues are largely driving the wedge between young people and Republicans.
Part of Clinton’s popularly is undoubtedly related to her heightened name recognition. But most of the Democratic candidates asked about in the survey receive more “yes” votes than votes against them. Vice President Joe Biden comes in second with 30 percent and Elizabeth Warren with 22 percent.(Survey respondents could select more than one candidate).
https://reason.com/blog/2014/07/17/millennials-plan-to-vote-for-hillary-cl2
Big jump in number of millennials living with parents reported
Big jump in number of millennials living with parents reported
More Americans than ever live in multigenerational households, and the number of millennials who live with their parents is rising sharply, according to a study released Thursday.
A record 57 million Americans, or 18.1% of the population, lived in multigenerational arrangements in 2012, according to the Pew Research Center. That’s more than double the 28 million people who lived in such households in 1980, the center said.
A multigenerational family is defined as one with two or more generations of adults living together.
Moving in with parents becomes more common for the middle-aged
Walter Hamilton
The sluggish job market and other factors have propelled the rise in millennials living in their childhood bedrooms.
About 23.6% of people age 25 to 34 live with their parents, grandparents or both, according to Pew. That’s up from 18.7% in 2007, just prior to the global financial crisis, and from 11% in 1980.
For the first time, a larger share of young people live in multigenerational arrangements than of Americans 85 and older.
https://www.latimes.com/business/la-fi-more-millennials-moving-home-20140717-story.html
Microsoft to cut up to 18,000 jobs over next year
Microsoft to cut up to 18,000 jobs over next year
Microsoft confirmed it will cut up to 18,000 jobs over the next year, part of the tech titan’s efforts to streamline its business under new CEO Satya Nadella.
In a statement released Thursday, Microsoft says about 12,500 of the professional and factory positions will be cut as part of its $7.2 billion acquisition of Nokia’s handset business, which the company closed in April.
“My promise to you is that we will go through this process in the most thoughtful and transparent way possible,” said Nadella in a memo to employees.
Nadella, who replaced Steve Ballmer in February, says the “vast majority” of employees affected by layoffs will be notified within the next six months. They will also earn severance and job transition help in many locations. All cuts will be completed by next June.
The layoffs by Microsoft — which employs 125,000 people — are the company’s largest ever. The acquisition of Nokia’s handset business in April added 25,000 people to Microsoft’s payroll.
https://www.usatoday.com/story/tech/2014/07/17/microsoft-job-cuts/12772901/
Lawmakers Throw Light on Secretive ‘Operation Choke Point’
Lawmakers Throw Light on Secretive ‘Operation Choke Point’
Kelsey Harkness / @kelseyjharkness / July 15, 2014 /
‘No place to stop’: Rep. Darrell Issa, R-Calif., on Operation Choke Point. (Photo: Flickr)
Is “Operation Choke Point” about to get choked by Congress? Rep. Darrell Issa, R-Calif., sure hopes so.
Issa, chairman of the House Oversight and Government Reform Committee, is calling for the dismantling of what he calls a secretive initiative launched by the Obama administration in early 2013.
Critics say that Operation Choke Point, so dubbed by Department of Justice officials under Attorney General Eric Holder, seeks to weed out businesses from the marketplace that the Obama administration considers objectionable. According to The Wall Street Journal, it was an outgrowth of the Financial Fraud Task Force, established by President Obama’s executive order early in his first term.
The initiative, Issa said last week, is a slippery slope:
“If you empower the government to pick winners and losers within a lawful enterprise, then there is no place to stop.”
Initially, in the wake of the 2008 financial crisis, officials targeted small-dollar, nonbank lenders. But it grew to include other legal, legitimate businesses such as gun dealers and tobacco vendors at Walmart and Bass Pro Shop.
Issa, speaking on Operation Choke Point at Cato Institute, called it “proactive, progressive activity” by government against banks and other legitimate businesses.
“Fraud should be prosecuted,” Norbert Michel, research fellow in financial regulations at The Heritage Foundation, told The Daily Signal. “They don’t have to use the banking system to shut out every single player in an industry to do that.”
House Republicans already have passed legislation prohibiting funding for Operation Choke Point. This week, the Justice Department initiative comes under further scrutiny in three House settings:
This morning at 10, the oversight and investigations subcommittee of the Financial Services Committee wasscheduled to hold a hearing on the Justice Department initiative.
Today at 2 p.m., the Financial Services Committee’s subcommittee on financial institutions subcommittee was set to hold a hearing on a new bill by Rep. Blaine Luetkemeyer (R-Mo.), the “End Operation Choke Point Act of 2014.”
Thursday at 9:30 a.m., the Judiciary Committee’s subcommittee on regulatory reform will hold a hearing entitled “Guilty Until Proven Innocent?” on whether Justice has the legal authority to execute the operation and possible collateral damage to legitimate businesses.
One official at Justice, quoted anonymously in a Wall Street Journal report last summer, said the initiative was intended to change “the structures within the financial system that allow all kinds of fraudulent merchants to operate,” with the intent of “choking them off from the very air they need to survive.”
By “air,”the DOJ means money. The Obama administration uses Operation Choke Point to intimidates banks from doing business with merchants it deems “high risk,” Issa and other critics say.
For example, Issa said in his remarks last week, Federal Deposit Insurance Corporation officials make “inappropriate” phone calls to banks and payday lenders, pressuring them to sever ties with businesses the government considers “reputational risks.”
Mark Calabria, Cato’s director of financial regulation studies, said FDIC pressure is an enormous weight over the financial industry.
“When the federal government maintains the discretion to decide which bank gets rescued and which does not, it should be clear that banks in practice have little choice but to cooperate,” Calabria said.
Despite his opposition to the initiative, Issa has yet to endorse legislation to end Operation Choke Point. Instead, he said:
We’ve got to do what baseball pitchers do anytime somebody’s crowding the plate. And that is, we’re going to put the ball close enough that either they’re going to jump back, or we’re going to hit them with the ball. … What they’re doing is wrong, and we’ve got to show that.
Endless wave of illegal immigrants floods Rio Grande valley
Endless wave of illegal immigrants floods Rio Grande valley
By Jana Winter
Published July 14, 2014
FoxNews.com
EXCLUSIVE: McALLEN, Texas — Life jackets of all sizes and the occasional punctured raft are strewn along the banks of the Rio Grande, just south of Mission, Texas, where a relentless onslaught of illegal immigrants eagerly surrender to beleaguered Border Patrol agents around the clock.
It’s a cycle for which there is no end in sight.
“You’re going to be out here a long time,” Fernando, an El Salvadoran child, told FoxNews.com shortly after surrendering to Border Patrol authorities after midnight Saturday. “There are thousands of us.”
With most of the men and women charged with securing the Mexican border busy processing some of the 60,000 illegal immigrants who have made the harrowing – and sometimes deadly -journey to the American border in the past nine months, only a handful of Border Patrol agents drive the riverside loop in a small town called Granjeno just south of Mission, in the Rincon peninsula.
https://www.foxnews.com/us/2014/07/14/night-time-on-border-endless-wave-illegal-immigrants-floods-rio-grande-valley/
‘I,’ ‘Me,’ ‘My’—Obama Uses First Person Singular 199 Times in Speech Vowing Unilateral Action
‘I,’ ‘Me,’ ‘My’—Obama Uses First Person Singular 199 Times in Speech Vowing Unilateral Action
July 11, 2014 – 8:56 PM
Not counting instances when he quoted a letter from a citizen or cited dialogue from a movie, President Barack Obama used the first person singular–including the pronouns “I” and “me” and the adjective “my”–199 times in a speech he delivered Thursday vowing to use unilateral executive action to achieve his policy goals that Congress would not enact through the normal, constitutional legislative process.
“It is lonely, me just doing stuff,” Obama said at the speech in Austin, Texas, according to the official transcript and video posted on the White House website.
“I’m just telling the truth now,” Obama told the crowd. “I don’t have to run for office again, so I can just let her rip. And I want to assure you, I’m really not that partisan of a guy.”
https://cnsnews.com/mrctv-blog/terence-p-jeffrey/i-me-my-obama-uses-first-person-singular-199-times-speech-vowing
















