Politics

Was General Motors’ Ex-Ceo Rick Wagoner Right?

Thursday, April 23rd, 2009

wagoner

I seriously doubt you’d find anyone willing to shed tears over the sacking of former General Motors CEO Rick Wagoner. His forced retirement pushed out by the Obama administration with its $20 million payout will make his golden years a bit more golden than the tens of thousands of GM employees who were shown the door as a result of Wagoner’s mostly feckless leadership.

But let me say this: Wagoner was right. Absolutely.

Not about wagering the company’s fate on impractical, inefficient SUVs. That was dumb long before gas reached $4 per gallon. Not when he strong-armed unions into give-backs on wages and benefits, and then shuttered their factories anyway. And not when he dragged his feet on electric- and hybrid-powered consumer vehicles. Or on any of the dozens of other bonehead decisions he presided over that hastened the downfall of what was once the cornerstone of the American manufacturing-based economy.

He was right about this: if the government cannot resolve the crisis of spiraling health care costs and its impact on the business of doing business in America, soon there will be no business.

In August 2004, Wagoner reportedly said that regardless of who won the presidential election two months later, fixing health care would have to be a top priority because paying for health benefits for employees, dependents and retirees was putting American carmakers at a severe disadvantage to foreign competitors.Shortly after President George W. Bush’s second inauguration, Wagoner repeated the point in Chicago. GM’s $5.2 billion annual bill for health care, Wagoner said, raised the price tag for a new GM vehicle by $1,500. Asian and European car manufacturers don’t face the same expenses because their governments pick up a huge portion of health care and pension costs, Wagoner explained.

And Wagoner wasn’t alone. Verizon CEO Ivan Seidenberg said in 2004 that health care for his company’s 800,000 employees, retirees and dependents came at a cost of $3 billion. In fact, a range of employers from small businesses to large-scale manufacturers are calling for health care reform.

And you don’t even have to ask about labor unions, do you? Nobel laureate Paul Krugman has been writing about the imminent
crisis
for years.

But despite the near-universal opinion, the problem persists. It is the problem that everyone recognizes but no one will step up to solve.

In my tenure as Communications Director for the United Electrical, Radio and Machine Workers of America (UE), I noticed a distinct pattern in contract negotiations. It was hardly a keen insight on my part—you’d have to be oblivious not to notice.

In every case—EVERY case—the major sticking point was health care. Grievance procedures, seniority, discipline, holidays,vacation, whatever… all of that could be resolved amicably, but inevitably there would be a battle over who would pay for health care and how much.

And once that battle ended, with no winner, the negotiators from both sides would lament that the health care problem is a chokepoint for progress and a flashpoint for labor unrest.

My idea then, and it’s available to anyone who wants it, free of charge, was for the union and management to sign a joint statement acknowledging that the failure of government to enact comprehensive health care reform was contributing to workplace strife, and that the continued health of the business was contingent upon a resolution of that problem that took the bosses’ and the workers’ heads out of the health care noose.

Get enough of those statements together, from unions and employers all over the country, and take them to Congress and say, “Here’s your political cover. Now fix it.”

That, I think, is where the problem lies.

The insurance industry is a behemoth with a lot of political clout, and politicians are in no itching hurry to challenge it. No matter how much sense it would make to tear the whole thing down….

You’ve probably never heard of Tommy Douglas, but he did just that, and in doing so earned probably the highest accolade a Canadian could ask for the people of Canada named him the best person ever in its history (Neil Peart didn’t even crack the top ten). Douglas was the premier of Saskatchewan, a fairly bland place all things considered, and hardly the place where you’d expect the greatest anything to come from (except, of course, the greatest wife, Hi, Honey!). In 1962, he stood toe-to-toe with the insurance industry and doctors, who went on strike for fear of losing their financial privilege, and won. Saskatchewan socialized its health care system, and soon was followed by the rest of Canada.britney spears circus download

It was a tough and bitter fight, dramatized in the CBC biopic Prairie Giant. (A fine film, but good luck finding it. It was considered to defame one of Douglas’s political rivals, and the CBC pulled all copies of it.) Despite the strike, scare tactics, red-baiting and personal attacks, Douglas and his supporters stood their ground, and now all of Canada doesn’t have to fear that a broken leg or a sudden illness will lead them to financial ruin.


While the American medical establishment boasts of its whiz-bang technology and a tummy-tuck in every pot, none of my Canadian in-laws would trade their health care cards and supposed waiting lists for the “convenience” and expense of American-style medicine.

And yet the United States, all can-do attitude and we’re-number-one bravado, can’t find a way to ensure that its people don’t suffer from treatable illnesses or lose their homes as a result of untimely injury because they, or their employer, can’t afford health care.

And when its major industries are drowning in health care-induced red ink, can’t we finally acknowledge as a nation that subjecting health care to the unfettered market is killing our economy?

It’s too late to save Rick Wagoner’s job (if anybody but Mrs. Wagoner cared to) and maybe too late to save GM. But can we please have some American somewhere stand up and channel his or her inner Tommy Douglas and demand that every American get real
health care, not one person excluded?

If that happens, I will personally head up the effort to name him or her the Best American Ever.

Dave Saldana is a journalist, civil rights attorney, media critic and satire aficianado based in Washington, D.C..

BREAKING: Gov’t Buyout, AIG, & Obama’s “Brand Black”

Wednesday, March 18th, 2009

Obama 2008

WOW.

Things are moving even faster than I thought in the re-ordering of the American economy. It’s four PM on Wednesday 3/18/09. Although many people don’t know or don’t yet understand, the link between government and finances has been totally changed.

Yes, we had AIG (see below), and the foreclosures.

But now… check this…. the U.S. government is buying a TRILLION DOLLARS in mortgaged backed securities in order to create instant liquidity in the markets (read: cash you can borrow to buy a home or a market.) I never thought the hip hop chant to “make money money, make money money mon-EEE” would become so literal.

Yes, I am a news geek; and a politics geek; and I am astounded. I linked from the NYT to this handy dandy URL you can share with your friends. tinyurl.com/USmakes-fakes-Money.

I wrote the article below earlier this morning. Already it seems dated. But bear with me as I breathe.

F

==========

I’ve been guesting on WNYC’s syndicated morning show The Takeaway with John Hockenberry. (Adaora Udoji is on maternity leave.) We’ve been talking a lot about branding. Some folks told us about the brands they missed (”Bit ‘o Honey” and the “Reggiebar” candy bars each got a vote).

Other folks talked about what they would rename/rebrand “too big to fail/too small-minded to give up the multimillion dollar bonuses” insurer AIG as…

Amigos in Gold

Amateurs Implementing Guile

Anti Inflammatory Geeks

A**holes Invoking God

As If God

Appalling In Greed

(And that’s just from the journalists!)

Listeners wrote, among others:

Absolutely Insufferable Greed

Angry Investor Gross

But let me take a turn here.

Yesterday, I was invited to address the US Mission to the United Nations, now led by Ambassador Susan Rice. I was part of a panel that examined how and why then-Senator Obama won the Presidency; and what lay ahead. I spoke about Brand Black, or blackness as a mature political brand, just as hip hop is now a mature media brand. Every product/entity/person who wants market share starts out in the experimental, spaghetti against the wall.

Of all the people who start blogs, relatively few keep it up and even fewer find a longterm audience. If they do find an audience—not just bloggers but political candidates, preachers, musicians, etc.—then they enter the brand-building phase. They try to bring on a core constituency first, then expand that constituency. For hip hop, the core constituency was urban blacks/Latinos, adding graf artists, b-boys and b-girls, streetcorner wisemen…. and then multicultural urban youth… and then multicultural global youth. As hip hop has become a mature brand, you see stars like Ice Cube and Queen Latifah moving into mainstream family-oriented film; P. Diddy and Russell Simmons crossing onto Broadway; Simmons into philanthropy and spirituality; and Jay Z into the economic CEO/Beyonceed celebrosphere. My argument in the speech, which I will elide, concerned the use of hip hop as a feedback loop that helped make blackness a culturally mature brand that had political capital.

Since this is a blog post and not a dissertation, peep this:

First, check out Jay Z solo.

Then, Obama on the stump.

Then the remix:

When Obama first made the gesture, it split the world into three camps: people who thought he actually had dirt on his shoulder (maybe three people or less worldwide); people who got the intent of the gesture (back up off this; you don’t matter); and people who got the specific reference to hip hop and the 2003 hit by Jay Z.

The use of hip hop signifiers and metaphors, as well as support from the hip hop community, really drove the Obama campaign at first. The hip hop generation (or at this point, really two generations) were the “early adopters” of Brand Obama. The Civil Rights generation were later adopters of Brand Obama. And Brand Obama stood on…. the shoulders of the Civil Rights generation, who took blackness from an exiled/discredited “brand” among anti-integrationist whites to a nearly-mature brand that lacked one thing… the sense that a black man could be president.

I didn’t know that Obama would win. No one did. But Obama used hip hop to leverage early youth support, which in turn built numbers for what political scientist William Jelani Cobb of Spelman calls “The Black History Month Massacre” (Obama winning 10 Dem primaries and caucuses in a row), which in turn helped justify Civil Rights generation political figures/superdelegates like John Lewis switching their allegiance from Sen. Clinton to Sen. Obama.

In the end, Brand Obama leveraged hip hop to take the White House… a final signal that “Brand Black” is mature and thriving. What happens next? I don’t know. But I’m eager to see, hear, and write more, especially now that politics has a soundtrack.

Pimp Mayor for Pimp City

Friday, March 6th, 2009
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March 3, 2009: L-R: Jack Weiss, candidate for Los Angeles City Attorney, Antonio Villaraigosa, Magic Johnson

Yeah boi! One thing we can say about Mayor V, is his ability to put Los Angeles on the map.

First elected in 2005 after a 180 year drought of Latino Mayors in Los Angeles, Antonio Villaraigosa has seen the ups and downs of being a high profile elected official. Certainly not shy to lights, camera, action! Mayor V’s re-election victory party at the Bonaventure Hotel in Downtown Los Angeles was a celebration of sorts.

Picture this:

Exited supporters waving their signs, Randy Newman’s “I Love L.A” playing loudly in the background, and an introduction by Lakers legend Magic Johnson, this victory party marked not only a historic re-election, but a rebirth of Los Angeles.

With a 10.1% unemployment rate and 1 out 10 people without jobs, the state registers office reports this is the highest unemployment rate since June 1983.

Donna Summer’s “She Works Hard for the Money” was on top of the charts and it seems—not much has changed, we’re still working hard!

Although the economy is in shambles, and the “Dream with Me” Mayor had certain fidelity indiscretions, there is still a sense of hope.

That hope, is the stuff that got Obama elected. And while some cry that the Mayor likes to be in front of the camera too much, or that he really had no competition and that in many ways Democracy in Los Angeles is dead – whaa -whaa, cry me a river and get over it.

So for the man in charge of the second largest city in the nation, a city in debt, low employment rates, a crumbling school system, and god knows what else, L.A continues to be one of the most desired cities to live in: we got the weather, the beach, the mountains, the entertainment, the bars, the clubs, the nightlife, we be big pimpin’! Spending G’s!

And we need a Mayor that understands that!

As well as a Mayor that can secure Los Angeles a huge portion of that stimulus package. You know, for all the official business of job creation, infrastructure and economic development.

Now, if only we knew for sure he’s going finish his term. Rumor has it that Governorship can be pretty enticing…

Amuse Bouche: Bobby Jindal’s Rebuttal

Friday, February 27th, 2009

jindal
Just when you think the Republican Party “can do anything” can’t stoop any lower, they throw Louisiana Gov. Bobby Jindal onto the national stage—to tirelessly compare himself to President Obama, make numerous Hurricane Katrina references to score a little cheap sympathy, and then sideswipe our dear president for passing “irresponsible” legislation.

Who compares himself to another in one breath, only to whack the same person from behind in another? It’s low. It’s dirty. And this is the behavior of the Republican Party’s new wonder boy—the kid they’re supposedly grooming to run for the White House in 2012? Good luck.

And, uh, if the American people “can do anything,” then why the hell was Jindal talking to us like we’re a bunch of illiterate children? We. Can. Understand. You. At normal talking speed. Governor. (But if you feel the itch to dumb yourself down more in the future—by all means…)

The Green Report: Obama Means Business on Green Energy

Friday, February 27th, 2009

It only makes sense that this week’s Green Report focus on the environment and the Obama administration after his joint session of Congress address on Tuesday. The Prez has some big ideas to help the environment. In fact, his top priority was energy, which includes producing more renewable energy and reducing America’s dependence on oil from the Middle East. Woo hoo!

Colorado Oil Shaleland

Colorado Oil Shaleland

So, it comes as no surprise that President Obama is reversing more of former President George W. Bush’s policies on oil shale. In fact, his Administration recently removed the leases for another round of oil-shale development projects on federal lands in Colorado, Utah and Wyoming. Ken Salazar, Obama’s Interior Secretary, withdrew a proposal for additional research and oil shale leases due to economic and environmental concerns. He thought the previous proposal in January for research and development on 1.9 million acres was flawed. Salazar told MSNBC that new proposals will “help answer critical questions about oil shale, including about the viability of emerging technologies on a commercial scale, how much water and power would be required, and what impact commercial development would have on land, water, wildlife, and communities.” Now, that’s environmentally responsible leadership.

And President Obama has plans to put his money where his mouth is. His proposed budget, released by the White House recently, would call for $15 billion a year to develop clean-energy technologies, which include solar and wind power. The funding to fight climate change and the country’s dependence on foreign oil would come from auctioning off carbon pollution permits, starting in 2012 (more on this below). Obama’s commitment to tackling climate change is fantastic but Congress is ultimately in charge of the budgeting. And the House and Senate haven’t written a bill yet that regulates greenhouse gases and collects money to do so. Let’s see what Congress and the President can devise to stop global warming.

factory

Environmental change calls for big bucks and a new funding system. To pay for his environmental budget to fight global warming, Obama proposes a “cap and trade” system. Basically, the federal government would require companies like power plants and industrial facilities that emit greenhouse gases linked to global warming to purchase permits. It’s like a costly swap-a-roo. If a company exceeds their greenhouse gases limit (read: cap), then they must buy credits from those that are emitting less.

This new revenue stream could bring in $78.6 billion to the Treasury by 2012. And the auctioning of emission allowances as outlined by the Obama plan is predicted to usher in a whopping $645.7 billion between 2012 and 2019. This is no small change and no small difference. The plan would “cut total emissions 14 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050.”

And Obama’s thinking of the little guy too. His proposed plan would take 80 percent of the anticipated revenue (or $526 billion) and subsidize the higher energy costs of low- and middle-income folks through tax credits. And the rest of the dough would go towards alternative, clean energy initiatives. Good thinking Prez!