Two Pieces of Good News from Washington

Speaker of the House John Boehner allowed a straightforward “clean vote” on raising the debt ceiling instead of holding the world economy hostage again. Many right-wingers are outraged. Maybe one day Congress will get rid of the debt ceiling altogether, since raising it merely allows the government to borrow money to pay bills Congress has already approved.

Secondly, Janet Yellen testified before Congress for the first time in her new role as chairman of the Federal Reserve. It’s hard to understand why President Obama initially seems to have preferred someone else for the job. There is a nice, clear summary of her testimony from John Cassidy at the New YorkerThis is his conclusion (calling her “dovish” means she’s not an “inflation hawk”, i.e. fighting inflation isn’t her one big priority):

She’s a historic figure. I am not just referring to her gender. I’m talking about her approach to policy making, and the emphasis she puts on creating jobs and reducing unemployment. “Since the financial crisis and the depths of the recession, substantial progress has been made in restoring the economy to health and in strengthening the financial system,” she said toward the end of her prepared remarks. “Still, there is more to do. Too many Americans remain unemployed, inflation remains below our longer-run objective, and the work of making the financial system more robust has not yet been completed.”

It’s been a long time since we’ve had a Fed chief come to office declaring that unemployment is too high, inflation is too low, and that we need to keep those Wall Street bounders in check. (Bernanke ended up saying some of these things, but he didn’t start out saying them.) In a post last year, I suggested that Yellen could be the most dovish Fed boss since … the Great Depression, and I noted that, “if Yellen does take over from Bernanke next February, there’s no reason to doubt that concern for the unemployed will remain her leitmotif.” Nothing she said today was inconsistent with that description.

Score 1 for United Government

Something I wrote a few days ago has piqued the interest of a supporter of “divided” government (see We Should Expect Divided Government for a Long Time and associated comments below).

Coincidentally, I just read about President Lincoln addressing Congress after the attack on Fort Sumter. Lincoln had raised a volunteer army to defend the Union, but without Congressional approval, since Congress was out of session and not due back for months. He summoned Congress back for a summer session and made his case (I’m quoting from The Man Who Saved the Union by H. W. Brands):

“These measures, whether strictly legal or not, were ventured upon under what appeared to be a popular demand and a public necessity, trusting then as now that Congress would readily ratify them” He requested authority to expand the army to 400,000 men at a cost of 400 million dollars. “A right result, at this time, will be worth more to the world than ten times the men and ten times the money…”

“This issue embraces more than the fate of these United States. It presents to the whole family of man the question whether a constitutional republic, or a democracy – a government of the people, by the same people – can, or cannot maintain its territorial integrity against its domestic foes… Must a government, of necessity, be too strong for the liberties of its own people, or too weak to maintain its own existence?… It is now for them to demonstrate to the world that those who can fairly carry any election can also suppress a rebellion.”

Since the Democratic Party’s Southern wing had disappeared (i.e. joined the Confederacy) and its Northern wing had lost its leader (Stephen Douglas had recently died of typhoid fever), the Republicans now had a large majority in both houses. Congress immediately ratified Lincoln’s previous actions and approved his request for more men and money. In fact, they voted for 500,000 men and 500 million dollars, more than Lincoln asked for.

The Usual Fear Mongering Baloney

Fox News headline: “ObamaCare could lead to loss of nearly 2.3 million US jobs, report says”.

Speaker of the House John Boehner tweets: “Pres. Obama’s [health care law] expected to destroy 2.3 million jobs”.

What the Congressional Budget Office really said:

CBO estimates that the ACA will reduce the total number of hours worked, on net, by about 1.5 percent to 2.0 percent during the period from 2017 to 2024, almost entirely because workers will choose to supply less labor — given the new taxes and other incentives they will face and the financial benefits some will receive….the largest declines in labor supply will probably occur among lower-wage workers….

The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in business’ demand for labor, so it will appear almost entirely as a reduction in labor force participation and in hours worked relative to what have occurred otherwise rather than as an increase in unemployment (that is, more workers seeking, but not finding jobs) or underemployment (such as part-time workers who would prefer to work more hours per week)….

In other words, some people, especially low-wage workers, will decide to work less because of the ACA, mostly because of the benefits they’ll receive.

I don’t know why those who wrote the report believe this will result in fewer hours being worked. In the case of anyone but the self-employed, employers will presumably still want someone to work those hours. As the supply of labor declines, the demand for labor should increase, resulting in rising wages for some workers and job openings for others (and, of course, low wages and unemployment are still two of our major problems). 

You might even argue (incorrectly) that everybody should work as much as possible, because that’s the capitalist way. That’s very different, however, from saying the ACA is going to destroy millions of jobs. 

As usual, Paul Krugman offers thoughtful commentary on the economics and the social impact here and here.

We Should Expect Divided Government For a Long Time

Back in July, I wrote about the unrepresentative nature of the House of Representatives:

The House doesn’t represent the will of the people, because small states are over-represented (some congressional districts are nearly twice as large as others) and recent gerrymandering results in more Republicans being elected than Democrats, even though Democrats get more votes.

What I should have said is that some small states are over-represented and others are under-represented. For example, Rhode Island’s two members of Congress each represent only 525,000 people. Wyoming’s single member represents about 580,000. Yet Delaware‘s one member of Congress represents 925,000 and Montana‘s represents more than one million.

That might be a wash in political terms, because some small states lean left and some lean right. Unfortunately, of the 12 states that have no more than two representatives in Congress, eight lean right and only 4 lean left.

In addition, we shouldn’t forget the District of Columbia, which has more people than Vermont and Wyoming, definitely leans left and isn’t properly represented in Congress at all (they don’t have a senator and their representative gets to talk but not vote). This all adds up to an advantage for the Republicans.

In that post, I also said that gerrymandering resulted in more Republicans being elected to the House in 2012 than Democrats, even though Democrats got more votes. I was right about the numbers: the Republicans received only 47.6% of the total House vote, but ended up with 51.7% of the seats, which resulted in the Republicans having almost total control of the House of Representatives, since the House is run more efficiently (i.e. less democratically) than the Senate.

It might be the case, however, that gerrymandering doesn’t explain the Republicans’ success. That’s not to say the Republicans haven’t done their best to draw Congressional district boundaries to their advantage. They clearly did so the last time they got the chance and did it with more dedication than the Democrats.

Nevertheless, a recent study suggests that the Republicans have a natural advantage in House races. The reason could be that Democrats have gerrymandered themselves by tending to live in big cities, college towns and old manufacturing centers. That’s how gerrymandering works. You try to clump together people who vote for your opponents in as few districts as possible. This creates a few extremely safe seats for your opponents (ideally, they’d get 100% of the vote in a few districts), and a bunch of relatively safe seats for your side. It’s basically voter segregation or ghettoization. By living close together in places like Atlanta, Ann Arbor and Toledo, Democratic voters appear to have put themselves at a natural geographical disadvantage in House races.

The people who did the study claim to have tried out thousands of different district boundaries in 49 states (no Alaska? no Rhode Island?). The results were not encouraging for Democrats or opponents of gerrymandering:

In the vast majority of states, our nonpartisan simulations produced Republican seat shares that were not much different from the actual numbers in the last election. This was true even in some states, like Indiana and Missouri, with heavy Republican influence over redistricting.

It might be possible to counteract this Republican advantage by creating lots of districts that radiate out from the centers of towns and cities and would include a nice mix of urban, suburban and rural voters. The authors of the study seem to discount this possibility. At any rate, their point is that by living in relatively close quarters, Democrats are at a natural disadvantage when it comes to electing members of the House of Representatives.

A reasonable conclusion to draw from all of this is that Congress is even less representative than it seems to be. The Senate was explicitly designed to favor the interests of lightly-populated states, which now tend to vote Republican, while the House exhibits some favoritism toward small states, but more importantly is gerrymandered, whether on purpose or by simple geography, to favor Republicans as well.

The good news is that Democratic presidential candidates may continue to do relatively well, since most people pay at least some attention to politics during presidential elections and most people agree with Democratic policies (progressive taxation, more social spending, less military spending). Democrats who run for President will do well, that is, until they actually have to govern. Then they’ll have to deal with too many Republicans in Congress.

After a Major Event, Life Goes On, But Surreptitiously

gnote1A major event? Yes, finally replacing my aging but handy Blackberry with a new Android smartphone (good-bye, Verizon, you bloodsuckers!).

Some might say it’s only a phone. It feels more like a lifestyle. You can’t do that anymore. Do this now. How do I do that? Guess! Or download an app. Which app? That app! Wait, what did I just do? I must have touched something. Oh, no!

Come on, why do you zoom in on Google Maps by pinching your fingers together instead of spreading them apart? Isn’t spreading them apart a more expansive gesture? And why can’t I spread my fingers apart in the prescribed way? It’s probably a genetic defect. Those of us who can easily carry out the correct two-finger spreading motion are now better-suited to getting around and finding mates. The rest of us will tend to stay put and die alone. If only I could remember the Alternate Zoom Technique:

In addition to pinching the screen to zoom, you can also double-tap on your map, hold, and then scroll down to zoom in, or scroll up to zoom out.

Coincidentally, the New York Times reported more from the Snowden Files today:

When a smartphone user opens Angry Birds, the popular game application, and starts slinging birds at chortling green pigs, spy agencies have plotted how to lurk in the background to snatch data revealing the player’s location, age, sex and other personal information, according to secret British intelligence documents.

In their globe-spanning surveillance for terrorism suspects and other targets, the National Security Agency and its British counterpart have been trying to exploit a basic byproduct of modern telecommunications: With each new generation of mobile phone technology, ever greater amounts of personal data pour onto networks where spies can pick it up….

[Among] the most valuable of those unintended intelligence tools are so-called leaky apps that spew everything from users’ smartphone identification codes to where they have been that day.

Fortunately, I don’t play with angry birds. But Google Maps is said to be one of the best sources of information for the intelligence agencies. The Times quotes a secret report from Britain’s G.C.H.Q. suggesting that “anyone using Google Maps on a smartphone is working in support of a G.C.H.Q. system”. Thank you. No problem.

We know that corporations collect whatever information they can about us. Now we know that the NSA and GCHQ are doing the same.

But assuming that we don’t want to stop using our phones or the internet and we can’t get our governments to stop this spying, we can take some solace in the fact that these people are collecting so much data, they don’t know what to do with it. Most of us will never stand out in the crowd.

However, if you happen to be planning a terrorist attack, or want to tell the President he or she is a jerk, you should definitely avoid Angry Birds. Or communicate the old-fashioned way:

ransom-note