RBS Should Spin Off Citizens Bank As IPO


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If the Royal Bank of Scotland sells Citizens Bank, which was reported again today in the Pittsburgh Tribune-Review, it could be another economic catastrophe for Rhode Island. As many as 3,000 jobs could be terminated here. But a sale doesn’t have to be a bad thing; it could be a boon.

Here are two very different scenarios.

If Citizens was sold to another bank, that would be bad news for Rhode Island. The 2,000 or so employees who work in local branches would likely retain their jobs, unless the new owner downsized. But the 3,000 or so jobs in bank operations would be vulnerable, depending on whether the new owner was already performing such operations in the United States.

There’s also a way that RBS could liquidate Citizens AND help (rather than hurt) the Rhode Island economy. It could spin off Citizens and sell it in a public stock offering rather than to another bank.

I’m not sure if a stock offering would rake in more or less money for RBS – nor do I really care. But I’m pretty sure that if Citizens Bank didn’t have a parent company it would need more operations in Rhode Island, not less, and retaining and creating jobs here is something I care about!

RBS is owned almost entirely by the British government, which wants the bank to sell off its Ocean State subsidiary.

Class Warfare Disquised As ‘Healthy Gridlock’


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Senator Dawson Hodges

Kyle Scott’s op-ed in today’s ProJo, “Gridlock comes out of healthy conflict” maintains that “as frustrating as the gridlock in Washington may be to most Americans we must keep in mind that this is the way it is supposed to work and that the gridlock is actually a good thing.”

Scott’s piece draws on the writings of Madison, Hamilton and Jay in The Federalist Papers as well as Roman historians such as Sallust and Livy to make his argument that the only real alternative to inefficiency in congressional decision making is the efficiency of totalitarian autocracies. This is a false dichotomy should be obvious since there is an entire range of ways in which to organize a political system that fall between Scott’s extremes.

There is, however, some truth in Scott’s piece, in that the way the United States government is set up provides a series of checks and balances on power, and that the two-chamber system we use for our Congress pushes the legislative branch towards compromise on difficult issues. But gridlock, despite what Scott might have us believe, is not compromise, gridlock is a failure of government to compromise.

Scott says, “…when you find yourself getting frustrated with Washington gridlock keep in mind this is how things are supposed to work and that it is better than the existing alternatives.” He is wrong. Gridlock is not the way government works. It’s the way government doesn’t work. In fact, rather than arising out of “healthy conflict” gridlock in Congress arises from income and wealth inequality.

Rather than depend on the historical perspective of long dead political writers, Nolan McCarthy, Keith T. Poole and Howard Rosenthal focused on the relationship between voter partisanship and income from 1956 to 1996. Their paper, Political Polarization and Income Inequality shows an “uncanny” proximity between political polarization (what Scott would call “healthy gridlock”) and economic inequality.

The obvious reason for this relationship is that big money in politics buys big influence. Republicans are more inclined to support policies that favor the 1% and to believe that government is ineffective. Gridlock, which brings government to a crawl and impedes its effectiveness, thereby becomes not just a tactic of the right, but the goal. Big money supports those politicians who will best stymie government.

Scott’s piece attempts to recast our government’s inability to do something as simple, perfunctory and necessary as raising the debt ceiling as being part of the Founding Father’s original intent.

Republican state Senator Dawson Hodgson  apparently buys into this conservative fantasy, tweeting, “Thoughtful piece from today’s ProJo about the protective and inclusive nature of political conflict.”

When I countered that “Legislative gridlock is related to greater economic inequality. Reducing the effectiveness of government is not good” Hodgson trotted out his usual, tired arguments rather than confront the point I was making, suggesting that I “Contrast Washington gridlock and RI inaction: evenly matched sides at stalemate vs ultra-majority rule producing no progress.”

Hodgson’s reply is nonsense. Due to the prevalence of DINOs in the General Assembly, Smith Hill very often suffers from the same gridlock as Washington, and the causes are they same: wealth and income inequality allowing monied interests to warp politics and grind government to a halt.

RI Republican Admits DINOs Skew Party Balance


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Rep. Doc Corvese is the Rhode Island poster child for conservatives who run as Democrats.

Some people think DINOs are Democrats who tend to be less than liberal. Not in the Ocean State. Here in Republican-rejecting Rhode Island, Democrat in Name Only literally means those cunning and conservative politicians who are Democrats only in name.

But don’t take it from me … that’s what Rhode Island Republican Ann Clanton told NPR earlier this week.

“We have a lot of Democrats who we know are Republican but run as a Democrat — basically so they can win,” she said.

It’s a great scenario for local conservatives; their philosophies are well-represented at the State House – think tax cuts for the rich, pension cuts for the poor, voter ID, marriage inequality and much more – while they get to complain that Democrats are ruining the state and its economy.

It’s why crafty conservatives like Dawson Hogdson and Doreen Costa spend more time griping about Democrats than actual policy. The reality is there are more Rhode Islanders aligned with progressive values than conservative values, but there are more center-right Democrats than center-left Democrats.

Whoever is ruining the state’s economy, they’ve done it by implementing conservative policies. Which party they caucus with really shouldn’t matter to Rhode Islanders…

People’s History: British Invasion; Blazing Saddles


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Union men on parade before the strike in Victor, Colorado, 1894. (Image courtesy of the Cripple Creek District Museum, made available via Heritage West)

Miners in Cripple Creek, Colorado begin a five-month strike today in 1894. In response to the falling price of silver, management increased the workday to 10 hours without raising wages. In other words, austerity. The mine owners eventually put together a private army … that’s when the national guard stepped in…

The British Invasion officially begins as John, Paul, George and Ringo arrive in New York for their first ever trip to America today in 1964. It’s hard to underestimate how culturally influential these four guys would be for the next three years…

Speaking of England, today in 1907, the Mud March: “Over 3,000 women trudged through the cold and the rutty streets of London from Hyde Park to Exeter Hall to advocate for women’s suffrage.”

Happy birthday Charles Dickens, born today in 1812 … His beat was class politics, and Hard Times is said to be a “prebuttal of a novel published almost exactly a century later, Ayn Rand’s Atlas Shrugged.”

Frederick Douglass was born today in 1817. He escaped slavery and eventually became a newspaper publisher. His speeches and writings changed the way America thought of black people.

Mel Brooks takes on racism in a very different style as Blazing Saddles hits the theaters today in 1974.

The Bishop of the Slums, Dom Hélder Câmara, was born today in 1909 “When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist.”