An Expert’s View Of Our Economy.

Posted on February 3, 2012 by Gary LaMaster

Following President Obama’s State of The Union address, Democratic Perspective invited Dean Baker to discuss the economy.

A highly respected macro-economist and co-founder of the Center for Economic and Policy Research, Baker writes a weekly commentary on the economy which is available on his blog, Beat The Press. He was among the first to raise concerns about a bubble in the housing market beginning in 2002 and he has written extensively about the bubble economy. He is also consultant to the joint economic committee for Congress.

We began our interview by asking Mr. Baker where we are now. “The economy fell off a cliff,” he responded. “We lost 7 million jobs and we’re now 10 million jobs behind where we should be. There is very weak growth and a huge backlog of unemployed. The reduction of unemployed is due almost entirely to people giving up looking for work. It’s a really bad picture. Lots of people are suffering.”

Baker continued, “The Larry Summers memo recently released in a New York Times article shows the administration was way too optimistic. They were given erroneous information. Unemployment went to 10.5 percent before the stimulus took effect.”
“President Obama should have said the stimulus was a good start, but we’re going to need more,” said Baker. “Unfortunately, he began to focus on deficit reduction, instead.” He believes that will make it difficult for the president to earn a second term. “No president has been re-elected with 8.5 percent unemployment since Franklin Roosevelt,” he said.

When asked about Republican statements that the stimulus failed, Baker responded, “There is a lot of research on the stimulus. It all points to the creation of 2.3 million jobs. The president has done a poor job of explaining that.”

“The loss of jobs all happened before he took office in the fall of 2008 and the beginning of 2009,” he continued. “The stimulus was not large enough and was never expected to do more.”

In regard to Republican demands for large cuts to reduce the deficit, Baker responded, “The Republican argument is ridiculous. How much evidence do I have to beat you up with? Austerity has deepened the recession in the countries that have tried it.”
As for claims that the government can’t create jobs, Baker said, “That’s ridiculous. How is cutting teachers going to create jobs in business?”

Turning to the controversy over capital gains taxes, Baker said, “The big cut was under Bush. He cut the rate from 20 percent to 15 percent. By comparison, the rate was 28 percent under Reagan. Why should you pay a lower rate on earnings from investment?” he asked. “Why should it be lower than the tax rate on ordinary income? I don’t understand why.”

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Dean Baker Interview — Podcast January 30, 2011

Posted on February 1, 2012 by William Timberman


Unemployment, Economic Stimulus, and the Deficit: In an exclusive interview with Democratic Perspective, progressive economist Dean Baker, co-founder and co-director of the Center for Economic and Policy Research, discusses what has happened to the U.S. economy since the collapse of Lehman Brothers in 2008 — the policy debate, the stimulus, the real unemployment rate, and where we are today, nine months before the next Presidential election.

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Following the Money: PACs and Their Effects — Podcast January 23, 2012

Posted on January 24, 2012 by William Timberman


Following the Money: The Influence of Political Action Committees on Our Politics and Legislation. Democratic Perspective’s co-hosts, Mike Cosentino and Steve Williamson, look at Political Action Committees (PACs) — what they are, who funds them, and what kinds of distortions they can introduce into our laws as well as our political campaigns.

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Money. Money. And More Money.

Posted on January 24, 2012 by Gary LaMaster

This week, Democratic Perspective continued our “Follow the Money” series on PACs (Political Action Committees) and Super Pacs. To illustrate the problem, we chose to focus on contributions to Congressman Paul Gosar since he is currently our representative.

Under current laws, PACs can give $5,000 to a candidate each year. And in 2010, Gosar received $354,647 from PACs.

PACs may be broken into two categories: Industry and professional organizations which are limited to donations of $5,000 per candidate per year, and Leadership PACs.

Among the industry and professional PACs that gave money to Gosar are the American Dental Association which gives 28 percent to Democrats and 72 percent to Republicans and the American College of Radiology which gives slightly more to Democrats. Gosar also received money from four other dental groups.

Gosar received more than $16,000 from leadership PACs in 2010. According to OpenSecrets.org, “Leadership PACs are those of established Congressional representatives. Leadership PACs are designed for two things: “to make money and to make friends. Leadership PACs provide a way for candidates to fund travel, office expenses, consultants, polling and other non-campaign expenses. They can also be used to fund other candidates’ campaigns, usually new candidates or threatened incumbents.”

Leadership PACs that contributed to Gosar included the Every Republican Is Crucial PAC, the GOP Generation Y Fund, the Freedom Project, the Liberty Project, Invest In A Strong & Secure America , Prosperity PAC, and SarahPAC, the PAC created by Sarah Palin. (Not coincidentally, Gosar hired many of her staff to work in his office.)

Other contributors to Gosar’s 2010 campaign included California Portland Cement Company, the National Restaurant Association (likely because Gosar is anti-union).

Of all of Paul Gosar’s contributors, the largest and one of the most interesting was Services Group of America which gave more than $42,000 to Gosar’s 2010 campaign. The company’s CEO, Thomas J. Stewart, was originally from Seattle but moved to Arizona in 2005. Stewart inherited the Seattle Stevedore Company from his father and, by 1984, his company controlled shipping in every port on the West Coast from San Diego to Anchorage. He quickly became the largest political contributor from Washington – giving only to Republicans.

Stewart faced $62,000 in civil penalties for an illegal contribution of $32,850 from Services Group of America to a 1995 ballot measure to change the way Seattle City Council members are elected. And, in 1998, Stewart was fined $5 million for illegal contributions to Congressional campaigns. It was found that he funneled illegal contributions to Republican candidates through his employees, giving bonuses to employees for slipping money into campaigns.

Stewart developed strong ties to Arizona, changing his residency to Arizona in April 2005. He moved his company here a year later. He, his wife and young daughter and his long-time pilot, were killed in a Cave Creek helicopter crash in early 2010.

In 2012, the PAC created by Services Group of America has already given $18,000 to Republican candidates for federal office.

Posted in Arizona Politics, Citizens United, Dark Money, Elections, National Politics, Paul Gosar, Political Action Committees, Political Contributions | Tagged , , , , | Comments Off on Money. Money. And More Money.

James Ledbetter Interview, Part 2 — Podcast January 16, 2012

Posted on January 17, 2012 by William Timberman


Independents, Education and Healthcare: In the second part of Democratic Perspective’s interview with James Ledbetter, we focus on the role of independent voters in Arizona, education funding, and his experience on the Governor’s Health Care Task Force.

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Independents, Education And Healthcare.

Posted on January 16, 2012 by Gary LaMaster

This week, Democratic Perspective continued our conversation with James Ledbetter, Cottonwood attorney and behind-the-scenes Democratic Party leader.

We began by asking Mr. Ledbetter about the independent voters in Arizona. “Independents are a huge factor, a growing factor,” he said. “Democrats have to figure out this group. Iowa showed they’re affecting the outcomes of elections, and they will for a long time. Candidates race to the middle following the primaries to attract independents.”

When asked if the trend toward independents has to do with the so-called “disgust factor” – the sentiment of “a pox on both parties,” Ledbetter responded, “Elections are about people and candidates. They’re not really about the parties anymore. In Yavapai County, independents are even more important. We have to re-think politics in order to invite these people to the dance.”

Moving away from politics, Mr. Ledbetter addressed the reasons he chose to get involved with the Mingus Union school board. “I have five sons,” he said. We will have 13 consecutive years of kids in high school. Frankly, schools are not valued in Arizona. Some want to cut the fat out of education. But I can tell you there is not fat left to cut. We have cut school administration to bare bones. 80 percent of our budget is people. We are even experimenting with a part-time administrator who has agreed to telecommute when he’s not on site. Given the budget, we didn’t have a choice.”

“During last year’s campaign for Arizona Superintendent of Public Instruction,” he continued, “John Huppenthal said there are lots of ways to improve education without spending more money. I don’t think that is true,” Ledbetter said. “Arizona is 50th in the nation for funding of education – 51st if you include Washington, DC. We have made all the cuts we can.”

“Starting salaries in Arizona are so low that a new teacher qualifies for AHCCCS (Medicaid) and food stamps,” he stated.

“At the end of the day, the best and the brightest should be in education. But we can’t pay them what they’re worth,” said Ledbetter. “There is a teacher at Mingus Union who has an engineering degree. He has been here for 10 years, but he is offered starting salary money.”

In response to a question about his role on the Governor’s health care task force, Ledbetter said, “People do not understand that AHCCCS is a hidden tax. A hospital cannot pay employees and provide medicine on the amount it’s paid. If you’re 65, you get health care. But if you’re a child who needs a kidney, you don’t.”

As for rationing of health care, he said that it is worse in many other countries. “If you have a tumor and need a CT scan, in the Verde Valley you can get it within a matter of hours,” he said. “But if you live in another country, you may have to wait months to get a CT scan. By that time, your tumor may have grown to be inoperable.”

In addition to serving as an attorney at the law firm he founded, James Ledbetter is President of the Mingus Union School Board and serves on the Boards of Northern Arizona Healthcare, the Verde Valley Medical Center, Flagstaff Medical Center and Sedona Medical Center. He is also active within a number of community agencies throughout Northern Arizona.

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James Ledbetter Interview — Podcast January 9, 2012

Posted on January 10, 2012 by William Timberman


The Art of the Possible: Democratic Perspective interviews Verde Valley Attorney, School Board President, and prominent Democratic Party stalwart James Ledbetter on the 2012 campaign cycle. The political fortunes of the Democratic Party in the Verde Valley, Arizona and the nation will depend on a number of factors, but the state of the economy and the outcome of the redistricting now in progress will probably prove to be the most decisive.

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“Compromise And Bipartisanship Are Not Dirty Words.”

Posted on January 10, 2012 by Gary LaMaster

This week, Democratic Perspective spoke with James Ledbetter, founder of the Cottonwood law firm bearing his name. He is President of the Mingus Union School Board and currently serves on the Boards of Northern Arizona Healthcare, the Verde Valley Medical Center, Flagstaff Medical Center and Sedona Medical Center.

Mr. Ledbetter is also active within a number of community agencies throughout Northern Arizona. He was a founding Director for the Boys & Girls Club of Cottonwood. He has served as a Board Member for United Way for Northern Arizona, the Verde Valley Fair Association and has provided volunteer legal services to a number of agencies, including the Sedona Center for the Arts, the Women’s Sanctuary of Cottonwood, Jazz On The Rocks, and the Old Town Mission.

With the Old Town Mission, Mr. Ledbetter established a pro bono legal clinic and worked to secure State and Federal licensures to operate a free medical clinic for the homeless and working poor.

If all that isn’t enough, Mr. Ledbetter has been appointed by Arizona Governors to serve on education, liability and healthcare task forces, and in February, 2010, he was appointed to a Congressional health care advisory board. He is recognized by his peers as one of Arizona’s Finest Lawyers, one of just 222 out of more than 21,000 attorneys in the state.

Mike Cosentino and Bill Timberman began our interview by asking about Ledbetter’s involvement in politics. “I’ve worked as an adviser to the DCCC (Democratic Congressional Campaign Committee) over the years,” he replied. “I write policy statements on health care and education, and I travel to Washington once a year to look at candidates and potential candidates.”

When asked about the upcoming presidential election, he commented, “I believe Governor Romney will be the GOP candidate despite the fact that he hasn’t been able to get above 25 percent in the Republican polls. He’s somewhat of a moderate and he’s well-financed, having spent $18 million in Iowa. Romney needs others to stay in the race as long as possible to divide the other 75 percent.”

“The coming election is a referendum on President Obama,” Ledbetter continued. “He’s done a good job as Commander-In-Chief, better than most would have imagined. But the economy will play a big part in the election.”

When asked about the possibility of running for office himself, Ledbetter replied, “My wife reminded me that it’s a very long commute to Washington. In other words, she and the family would not live there. It’s not a place to raise kids.”

That hasn’t stopped Mr. Ledbetter from playing a role in the electoral process. He has supported numerous candidates, including former Congresswoman Ann Kirkpatrick. “I went to the same high school as Ann. We both practiced law in Flagstaff. She was always well-prepared. Ann received some good news recently when Congressman Paul Gosar announced that he will move to District 4 for the next campaign. Ann will have a good shot at reclaiming her seat as the redrawn CD-1 will probably lean Democratic by 9 points.”

Having worked for both Democratic and Republican candidates in the past, Ledbetter is dismayed by the current political climate. “Compromise and bipartisanship are not dirty words,” he said.

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Lane Kenworthy Interview, Part 2 — Podcast January 2, 2012

Posted on January 4, 2012 by William Timberman


America’s Big Government Future, Continued: Lane Kenworthy expands on his discussion of America’s future with Democratic Perspective co-hosts Steve Williamson and Mike Cosentino.

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America’s Big Government Future, Cont’d.

Posted on January 4, 2012 by Gary LaMaster

To further examine the role of government in America’s future, Democratic Perspective once again spoke with Lane Kenworthy, author and Professor of Sociology and Political Science at the University of Arizona.

In his latest appearance on the program, we again asked Professor Kenworthy about American attitudes toward government. “Political and social scientists looking at public opinion surveys find that Americans say they don’t like big government,” he said. “But when asked about specific programs, they often say they would like to spend more. Of course, those programs added together equal big government.”

“The conclusion is that Americans are ideological conservatives, but programmatically liberal,” he continued.

“Take Social Security,” he said. “A General Social Survey found that, pretty consistently, just over half of Americans think we should be spending more on Social Security. It’s another example of insurance programs that are needed. As countries get richer, we tend to want more insurance.”

We then turned the discussion toward the falling wages of the middle class. “Right after World War II, the economy was rolling,” Kenworthy said. “All the way to the bottom, incomes were growing. That stopped in the 1970s. From then on, wages haven’t grown at all for the lower half of the income scale.”

“Since the 70s, household incomes have grown only because each household has two people working. Increases have been offset by inflation. Before the housing crash, people could fill in the gap through second mortgages. That’s no longer possible. Yet all of modern gadgets available make you feel as though you’re better off. But that feeling is coming to an end.”

The Occupy Movement is obviously a reaction to current economic disparity. So we asked Professor Kenworthy to assess the movement. In the short term, he said the movement has increased journalistic attention to middle class living standards. But he believes the long term effect of the movement is less clear. “It may change the dialogue,” he said. “There are two models for social movements: The Civil Rights movement of the 1950s obviously had a large and lasting impact. The results of the anti-war protests of the 1960s were more subtle. They probably caused a change in the outcome of the Vietnam War, but that’s unclear. It’s unclear which model the Occupy Movement will more closely resemble.”

To read more about Lane Kenworthy’s work, visit his blog, Consider The Evidence.

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