On moral obligations


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do-the-right-thingDon’t make the mistake of confusing what the bond market calls a moral obligation with the more widely-held definition of the term.

One may suspect that a moral obligation as it applies to repaying the 38 Studios loan implies that our shared concept of right and wrong compels us to make good on our word to repay the debt we owe those who bought the bonds.

No, not at all actually.

In the world of high finance and big bond buying, a moral obligation simply means it may or may not cost money to change ones mind. It’s actually a misuse of both words in that repayment has nothing to do morality, nor is it an obligation. It’s not even apples to oranges. It’s more like apples to poisonous mushrooms. It’s almost as if the fat cats of finance have purposefully perverted the phrase to further institutionalize our self-interest in serving the rich, but I’m sure an industry that is too big to fail would never stoop to such a tactic.

Not at all to discount what’s in our fiduciary best interest, but I think it’s a slippery slope when we start confusing fiscal decisions with moral obligations. There’s even an insurance product for this. You know your society is in trouble when there is an industry that makes money off of the assumption that the government won’t make good on a moral obligation.

That said, I’m really hoping it ends up being financially advantageous not to pay the bondholders – that way we can save money AND we’ll see who in Rhode Island is a real small government conservative and who is acting like a friend to the taxpayer when they are secretly just advocating for Wall Street and corporate America’s interest in our state government.

Providence ranks 4th most post-Christian city


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post christian citiesMore and more research seems to come out every week that talks about the decline of traditional religious beliefs in the United States. Stories about the “nones” those that that claim no religious affiliation, place the number at about 20% nationally, and here in Rhode Island that figure is over 40%.

Now the Barna Group has released new data on what it calls “Post-Christian Cities.” As Barna puts it:

The level of irreligion in America depends on how you measure it. And the vitality of faith in America is much more than simply how people label themselves. Barna Group tracks the following 15 metrics related to faith, which speak to the lack of Christian identity, belief and practice.

The Barna Group identified “Post-Christians” as meeting 9 out the following 15 factors, and identified those who identified with 12 of the 15 factors as being “Highly Post-Christian. The factors listed are:

1. do not believe in God
2. identify as atheist or agnostic
3. disagree that faith is important in their lives
4. have not prayed to God (in the last year)
5. have never made a commitment to Jesus
6. disagree the Bible is accurate
7. have not donated money to a church (in the last year)
8. have not attended a Christian church (in the last year)
9. agree that Jesus committed sins
10. do not feel a responsibility to “share their faith”
11. have not read the Bible (in the last week)
12. have not volunteered at church (in the last week)
13. have not attended Sunday school (in the last week)
14. have not attended religious small group (in the last week)
15. do not participate in a house church (in the last year)

The Providence, RI-New Bedford, MA market area came in number four, at 56% “Post-Christian.”

Such data should give pause to those who might want to impose their religious views on the marriage equality legislation currently awaiting a vote in the RI State Senate. For the vast majority of Rhode Islanders, the views of the Catholic Church and conservative Evangelicals are irrelevant at best. Add to that 56% number those religious believers that do not meet the criteria of “Post-Christian” but instead justify their acceptance of marriage equality in religious terms and the number of people unswayed by conservative religious arguments jumps appreciably.

I’ve pointed out in the past that many, if not most Catholics are “cultural” Catholics or “Catholics-in-name-only.”  A NY Times/CBS News poll conducted in March showed most American Catholics hold views that are seriously contrary to official church teachings.

As if to exemplify this trend, when asked, “On difficult moral questions, which are you more likely to follow – the teachings of the Pope, or your conscience?” 78% of Catholics answered “conscience.” It is either irony or poetic justice that as the Catholic Church redefines freedom of conscience and religious liberty with their “Stand Up for Religious Freedom” campaign, that the Catholics who do so move away from the church.

Freedom really does come at a cost.

Pensions, hedge fund managers, David Boies


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dan loebAs Rhode Island considers whether Gina Raimondo is making a wise gamble with our money by moving more of public sector retirees’ pension account into risky hedge funds, the New York Times Dealbook blog reports that the S&P 500 stock index outperformed the average hedge fund for the fourth year in a row.

Swashbuckling bets and robust returns are exactly what investors are hoping for — and paying for in outsize fees — when they allocate money to hedge funds. But far too often in recent years, investors have paid hefty fees for lackluster returns.

And last year was no different.

For the fourth consecutive year, most hedge funds failed to beat the market. The average hedge fund gained 6.4 percent last year, according to a composite index that tracks 2,200 portfolios compiled by Hedge Fund Research.

By comparison, the Standard & Poor’s 500-stock index climbed 16 percent when factoring in dividends. In 2011, the average hedge fund lost more than 5 percent, versus a 2 percent gain for the S.& P. 500.

The Dealbook post also listed the 10 highest paid hedge fund managers, according to Institutional Investor Alpha’s annual “Rich List. At least two of whom Rhode Island invests a considerable sum of our pensioners retirement security with:

Loeb was featured in Rolling Stone magazine on April 11 about his crusade to take over more pension plans, and his lack of affinity for defined benefit pension plans.

Dan Loeb, who isn’t known as the biggest hedge-fund asshole still working on Wall Street (only because Stevie Cohen hasn’t been arrested yet), is on the board and co-founder of a group called Students First New York. And Students First has been one of the leading advocates pushing for states to abandon defined benefit plans – packages which guarantee certain retirement benefits for public workers like teachers – in favor of defined contribution plans, where the benefits are not guaranteed.

In other words, Loeb has been soliciting the retirement money of public workers, then turning right around and lobbying for those same workers to lose their benefits. He’s essentially asking workers to pay for their own disenfranchisement (with Loeb getting his two-and-twenty cut, or whatever obscene percentage of their retirement monies he will charge as a fee). If that isn’t the very definition of balls, I don’t know what is.

There’s an interesting connection here between hedge fund managers, public teacher pensions and the so-called ed. reform movement; StudentsFirst was founded by Michelle Rhee and she is also on the board with Loeb and other hedge fund managers.

But there’s another interesting local connection too: David Boies, the high-price super lawyer who is defending Raimondo and her pension plan at a great discount is also on the StudentsFirst board with Loeb and Rhee.

According to a Ted Nesi post from November, Boies agreed to defend in court the pension cuts to state workers and teachers for $50 an hour when he usually charges $960.

Kiwis passes marriage equality, sings love song


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New-Zealand-MP-Metiria-TureiWouldn’t it be great if marriage equality advocates broke out in song from the gallery seats in the senate chambers, like they did in New Zealand?

The Kiwis became the 14th country to lift the ban on same sex marriage, according to ThinkProgress which posted this video of activists leading the parliament in a traditional local love song.

The question at this point is what kind of exemptions Senate President Teresa Paiva Weed decides to attach to the bill. I just hope she reads Steve Ahlquist’s great post on what is driving the push for such exemptions before she considers doing so…

Minimum wage hike good for economy, taxpayers


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Through a translator, Bernardo Chimoro, of Central Falls, tells Kate Brewster, of the Economic Progress Institute, and congressmen David Cicilline and Jim Langevin why raising the minimum wage would help him and others in his community. (Photo by Bob Plain)

If corporate America was still run by businessmen like Henry Ford, we probably wouldn’t need to have a minimum wage law.

Ford, said Congressman Jim Langevin recently, “wanted his workers to earn a wage that was sufficient for them to buy an automobile that he produced. He recognized with a strong middle class, with a strong working class, that the economy does better, and his company did better.”

Of course, somewhere along the way the business ethic of Henry Ford was subverted by that of the Koch brothers – making a meaningful minimum wage more important than ever to the American economy.

“Raising the minimum wage is trickle down economics that actually works,” Langevin said.

He and his colleague Congressman David Cicilline are both co-sponsors of a bill that would gradually raise the federal minimum wage from $.725 to $10.10 by 2015. Here’s why:

Cicilline said raising the minimum wage would have a direct affect on the small businesses economy in Rhode Island.

Kate Brewster, of the Economic Progress Institute, said raising the federal minimum wage would benefit 72,000 Rhode Islanders. She dispelled the oft-repeated myth that most minimum wage workers are teenagers saying only one in five is younger than 20.

Brewster also echoed Cicilline’s point about how it would boon for local small businesses saying, “Putting more money in the pockets of workers will put more money in the cash registers of local business, which will help to create jobs here in Rhode Island.”

And in yesterday’s Wall Street Journal, Ralph Nader even showed how raising the minimum wage can lower our taxes:

Corporations pay their workers such low wages that the workers can’t afford to buy the food, pay the rent, or get the health care they need. Consequently, these employees increasingly turn to the taxpayer-funded government safety net via food stamps, Medicaid, the earned income tax credit and housing-assistance programs. Taxpayers end up footing the bill for the unconscionably low wages paid by profitable corporations.

Wal-Mart, which grossed $318 billion in the U.S. last year, provides its workers with technical advice about how to apply for this public assistance. For responsible businesses to subsidize the low wages of their larger competitors is a complete perversion of capitalism.

Corporations like Wal-Mart have no problem making profits while paying the higher $10.25 minimum wage in Ontario, Canada, just across the border from Buffalo, N.Y.

In short, raising the minimum wage is good for workers, communities, economies, small businesses and good government. On the other hand, it will mean less massive profits for McDonalds and Walmart.

Siedle says COLA cuts are paying Wall Street fees


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wall street democratForbes.com opinion blogger Ted Siedle has posted another piece highly critical of Gina Raimondo’s so-called reforms to the state pension system.

This time he suggests that the amount retirees’ cost of living adjustment was slashed might be just enough to afford the new fees being paid to the venture capitalists and hedge fund managers with whom Raimondo gambled the state’s pension fund.

The so-called “reforms” of the state pension in the Rhode Island Retirement Security Act of 2011, which include slashing the COLA, I’m told are projected to save $2.9 billion over 20 years. Suspension of the COLA is estimated to represent $2.3 billion of that savings.

I can tell you where that COLA savings is going—into the already-stuffed pockets of Wall Street’s most highly-compensated gamblers—almost dollar-for-dollar. By my estimate, $2.1 billion in fees (out of the $2.3 billion in COLA savings) will be paid by the pension to hedge, private equity and venture capital tycoons. That’s some “reform.” No wonder Wall Street is so eager to support this shameless public pension money grab.

Here are his other posts on Raimondo’s pension work:

For sale from Raimondo: access to public records


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gina manhattan instituteIt turns out I wasn’t the only one told by Gina Raimondo’s staff lawyer Mark Dingle that public record requests from the general treasurer’s office literally come at a cost.

For me, when I asked for records of Raimondo and her staff’s communications with members of Engage RI, the price tag was $435. For AFSCME, a labor union that wanted to know how much fees money managers are making on their pensions, the cost was $1,485, according to a GoLocalProv story.

Steven Kreisberg, the director of collective bargaining for the American Federation of State, County, and Municipal Employees told GoLocal in no uncertain terms that he thought the treasurer’s office was requiring prepayment as a way to stifle public scrutiny.

“That language was clearly written for a desired outcome, and that was that was to deter us from following up on the request,” said Kreisberg.  “These are public records — and they want to gouge us to get them, if at all?”

The treasurer’s office told me it would take about 30 hours to investigate my request. AFSCME’s request would take 100 hours. The wheels of democracy turn slowly when it comes to compiling information for the public.

Recall what Raimondo told the ProJo in December about her frequent travel out of state (ProJo link here): “It is extremely important, actually, for the treasurer … to spend time, in person with investors, so they can ask questions and I believe, especially in these times of uncertainty and fiscal distress, it is more important than ever that [a] treasurer bend over backwards to be transparent and open with our investors…”

In March, I wrote this about Raimondo: “Gina Raimondo will surely always represent Rhode Islanders above her out-of-state Wall Street donors … the question is how close of a second will the Wall Street donors be.”

But now I’m starting to think Mike McDonald got it right when he wrote that her moral obligation seems to reside with Wall Street first and us Rhode Islanders somewhere after that.

Terror as we celebrate asymmetrical warfare


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Lexington and ConcordThe bombs in Boston blew up while we were celebrating the shot heard ’round the world. An act of terrorism marred the annual marking of the world’s most famous response to asymmetrical warfare in history. There’s more than irony here, there’s a lesson to be learned.

For those who don’t know, the Boston Marathon is held each year on Patriots’ Day, a state holiday in Massachusetts set on the closest Monday to April 19, the day in 1775 when the British army first attacked the colonial militia.

Colonists got wind of the redcoat’s plan to attack and arrest some of the key radicals who had been fomenting a revolt. Paul Revere set out on his midnight ride, roughly the same route as the Boston Marathon, to roust up enough locals to take up arms against their government.

On the morning of April 19, the outmatched minutemen first clashed with the British army in Lexington, Mass. Realizing they were outmatched, the colonists dispersed shortly after what Ralph Waldo Emerson later dubbed the shot heard ’round the world. Not realizing they were enmeshed in an asymmetrical war, the redcoats began marching towards Concord and we ambushed them on their way.

Almost everything about how a rag-tag band of s0-called Patriots were able to upset the most powerful empire on the planet is a testament to how to foment and fight an asymmetrical war – including the events that led up to the Battle of Lexington and Concord. The Sons of Liberty, an anonymous band of rebels, goaded England into attacking through a series of clandestine direct actions like the Boston Tea Party and the burning of the Gaspee.

Someone put a few bombs in downtown Boston yesterday for the same reason colonial early Rhode Islanders burned the Gaspee: with the hope that it would be the response that is heard ’round the world.

For MetLife and Rhode Island, size matters


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Downtown Providence from the Providence River. (Photo by Bob Plain)
Downtown Providence from the Providence River. (Photo by Bob Plain)

In the brouhaha about MetLife leaving, I did see and hear people try to blame this on the too-high RI taxes. Of course; it’s always about the taxes, isn’t it? I would like to make one point about that.

For 2012, MetLife reported $1.4 Bn of operating earnings. In comparison, the $80-90 Mn of tax relief that the will receive would just register as a rounding error in any single year. But those tax savings will be spread out over a number of years. As such, they don’t even constitute a rounding error.

Any company, of any size, that makes long-term decisions based on a few years worth of tax savings is not a company that will be around long enough to realize those savings. Only a company in dire straits would make so drastic a move for so little return. Because let’s face it, the up-front investment that is required will more than eat up those tax savings. In such cases, breaking even is a good result in the real world.

No: the savings will come from other areas: lower rent vs what is being paid in the Northeast, in greater Chicago, in the SF Bay area; it will come from lower wages paid to younger workers who do not incur the disability and medical expenses an older workforce will incur; it will come from pension benefits that do not continue to accrue to said older workers, and that will not be paid at all to younger ones. That’s where the money is.

No, RI’s problem is not the tax structure. It’s the size that matters.

The sad fact of the matter is that RI does not have its own economy. RI is a pale reflection of what is happening in Boston. Nor is this a recent development: it was already true in the early 1980s. Look back at the numbers; that was the period when Dukakis was creating (or taking credit for) the “Massachusetts Miracle.” The 128 Loop was America’s Technology Highway, where high tech lived before being superseded by Silicon Valley. Massachusetts recovered sooner than most of the country from the recession of the late 1970s; RI was a couple of years behind.

Then, in the mid-eighties came the phenomenon of Woonsocket turning into a bedroom community for Boston. Same with Nashua NH. Around then the ProJo carried a story of people taking classes to lose their RI accent because they felt that companies in Boston believed that people with an RI accent were less intelligent.

So, no, this is not a new phenomenon. What I have cited is anecdotal; but the numbers in the BLS and Census, etc. will support these contentions.

Also according to the US Census, in 2000, 79% of the population of the US lived in urban areas. In states like Nevada, it’s upwards of 90%. More, 45% of the population of the US now lives in the top 20 urban areas. In the meantime, the Census Bureau also says that one-third of all counties in the country are being drained of population. What does this mean?

It means that the urban concentration that began at the end of the 19th century is continuing. More and more people are living in and around cities while other areas languish. Telecommunication, and telecommuting were supposed to make cities obsolete; the opposite is happening. Telecommuting was all the fad in the late 90s and into the new millennium; now, companies are eliminating it.

It means that, in order to compete, size is a huge factor. Charlotte NC is now the #2 financial center in the country, after NYC. It has surpassed Chicago, with its Mercantile Exchange. It is the #2 center largely because the #1 bank, Bank of America, has its HQ there, and Wells Fargo has its East Coast operations HQ there. The Charlotte Combined Statistical Area has 2.4 million people. This is not rural America anymore.

With a million people, Rhode Island cannot compete with such a center, any more that it can compete with Boston. The advantages of a large educated, concentrated workforce with good infrastructure and a compact geographical footprint are too great to overcome. This is why NYC not only continues to exist, but to thrive, in the face of all the reasons conservatives say it shouldn’t: high taxes, big government, and whatever else they complain about. Half of the wealthiest zip codes in the country are in NY and NJ, both of which are high-tax states.

RI is not losing jobs to lower tax states; RI is losing jobs because the vast majority of jobs are in these concentrated urban areas. If jobs aren’t there already, they’re relocating there. I heard a story on NPR that a growing company in Kansas could not find workers. That’s because no one is willing to relocate to a small town that depends on a single employer; what happens when that employer decides to off-shore the jobs? People are stuck in a small town without prospects. In a larger metro area, there are other jobs, or at least a greater possibility of other jobs.

Size matters. The country is not de-urbanizing. Exactly the opposite.

Addendum: The point is, MetLife made its decision to relocate to NC for its own reasons. Only then did it approach the NC government and see how much it could extort from the state’s taxpayers. In other words, MetLife got money from the state to do exactly what it would have done without the tax breaks. In fact, there have stories to this effect in the North Carolina media, complaints that the state of NC got played for chumps by a large company.

And, btw, NC in general, and Charlotte in particular, have unemployment rates that are only a couple of tenths of a percent lower than what RI and Providence has. It’s not exactly boom-town down there, either.

So, yes, NC is getting the jobs. But they would have gotten the jobs without the subsidies.  So no, it’s not about the tax rates, no matter how often or how loudly conservatives will say it is.

Jack Reed takes it to the banks and their regulators


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Screenshot-ReedThere’s been a surprising dearth of coverage in the local press of Jack Reed’s exemplary work last week, as he stuck it to the Office of the Comptroller of the Currency (OCC) alongside Sherrod Brown and Elizabeth Warren.  Here’s a .

Here’s the rub, from Dave Dayen at Salon:

The vast majority of borrowers – 3.4 million – will receive $1,000 or less. To pick a category at random, 234,000 borrowers had a loan modification approved, were kicked out of their homes anyway, and will receive for their trouble – for having their home effectively stolen – a whopping $300 (for comparison’s sake, the third-party consultants got $10,000 per review).

HuffPo notes Reed’s role here:

Under questioning from Sen. Jack Reed, a Rhode Island Democrat, regulators came the closest to acknowledging that the reviews, which resulted more than $2 billion in payments by the banks to consultants, were poorly conceived and supervised.

exity of the task,” said Daniel Stipano, a top lawyer at the OCC. He cited the number of financial institutions, consultants and homeowners involved and the difficulty in negotiating state law as among the challenges that reviewers and regulators had to negotiate.

Dave explains how this hearing and the OCC mortgage fraud settlement relate to the broader housing collapse.  Dave’s thrilled to see that the foreclosure fraud issue is FINALLY getting some play with the national press — with the tag-team effort by Reed, Warren, and Brown appearing — and even leading — on many national network news casts this week.

I have spent the better part of four years trying, with little success, to raise awareness aboutforeclosure fraud, the largest consumer fraud in the history of the United States.  In fact, there’s a whole little band of us writers and activists and foreclosure fighters. We have provided multitudes of evidence about fake documentsforged documentsillegal foreclosuresforeclosures on military members while they served overseasforeclosures on homes with no mortgagesbreaking and entering into the wrong homessuicides by foreclosure victims, and above all the complete lack of accountability for these crimes and abuses.

But instead of giving voice to thousands upon thousands of victims of illegal foreclosures, instead of documenting the banks’ criminal practices, maybe what we all should have done is simply let the Office of Comptroller of the Currency – part of the Treasury Department — and the Federal Reserve construct their own settlement with the banks. Then, when it utterly unraveled — as it has over the past couple of months — the unimaginable fraud heaped upon homeowners would get more attention than ever before, particularly from a frustrated and angry Congress led by Sen. Elizabeth Warren.

The OCC’s pathetic response to the housing crisis, its attempt to cover up its own corruption/ineptitude, and Warren’s star power make this the perfect moment to bear down on these issues.  Reed deserves praise for helping to lead the charge — let’s hope he keeps plowing forward.

How the right pushes for exemptions to equality


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marriage equality RallyMarriage equality advocates took lot of hope from April 8th’s front page ProJo article in which Senate President M. Teresa Paiva Weed anticipated “a full Senate vote on whether to legalize same-sex marriage by the end of April.”  Good news indeed, but one needs to continue reading for the unpleasant bit.

Paiva Weed is concerned that the bill’s religious exemptions may be inadequate, and would like to see more comprehensive exemptions. But if marriage equality is the goal, and so-called conscience clauses allow same-sex couples to be discriminated against by wedding photographers, bakeries, flower shops and rental halls, then in what sense will gay marriage be equal?

A sense can be formed of Paiva Weed’s thoughts on this issue. The ProJo reports that Paiva Weed feels that one of the “better explanations” she’s read regarding exemptions was an op-ed piece by Robin Fretwell Wilson, a Washington & Lee University law professor. Fretwell Wilson criticized the Rhode Island House bill for providing only “fake protections,” arguing that “religious liberty and same-sex marriage share an inseparable fate.”

Reading Fretwell Wilson’s piece one might come to the conclusion that the marriage equality legislation under consideration does nothing to protect organized religion. Fretwell Wilson completely ignores the fact that Rhode Island has a robust set of laws already on the books that provide some of the strongest religious liberty and conscience protections in the United States.

Janson Woo, and attorney with GLAD, Gay and Lesbian Advocates and Defenders, in his testimony before the Senate, explained that “Senate Bill 38 and current Rhode Island Law provide broader exemptions for religious organizations than any other state in this country that allows gay couples to marry.” How is this possible? “Current Rhode Island law already has a complete exemption for religious organizations in our sexual orientation and discrimination law.”

Woo continued, “That is an incredibly broad exemption. It is one of the broadest in our country, and even if that were not ample or broad enough for the protection of religious organizations and the protection of religious liberty, Rhode Island also has the Religious Freedom and Restoration Act, or RFRA, which provides additional protections and greater protections than the Federal Constitution [for religious freedoms].”

So why would Fretwell Wilson, who certainly seems to know a thing or two about the law, mis-characterize both the Senate bill and Rhode Island’s long standing commitment to conscience and religious freedom? Perhaps it is because she is part of the “mainstream academic presence” aligned with “Becket Fund for Religious Liberty, a public interest law firm based in Washington, D.C., and the United States Conference of Catholic Bishops (USCCB).”

A March, 2013 report entitled “Redefining Religious Liberty: The Covert Campaign Against Civil Rights” by Jay Michaelson for the Political Research Associates describes “A highly active, well-funded network of conservative Roman Catholic intellectuals and evangelicals” that “are waging a vigorous challenge to LGBTQ and reproductive rights by charging that both threaten their right-wing definition of “religious liberty.”

The report is comprehensive, well-sourced, and names names. It specifically identifies Robin Fretwell Wilson as being part of a “regular consortium” of scholars who “make highly conservative political arguments, send letters to state legislators, and take direct roles in the drafting of legislation. These academics may well believe that religious liberty is threatened, but their work has been enlisted by a mass movement of seeking to end access to reproductive health care and restrict the civil rights of sexual and gender minorities.” (emphasis mine)

Paiva Weed may also truly believe that she is advocating for religious liberty when she buys into the arguments of the religious right, but she is mistaken. These new calls for “religious liberty” are really calls for the right to discriminate based on gender identity and sexual preference.

In yesterday’s ProJo Bernard Healey, chief lobbyist for the Providence Catholic Diocese, regurgitated these fallacious arguments in an attempt to twist the meaning of religious liberty into its exact opposite.

Schools, health-care facilities and a hospital that are operated by the diocese and “employ thousands of people” would be subject to new rules, some of which violate the diocese’s long-held beliefs, he said. [Healey] pointed to a case in New York, which approved same-sex marriage in 2011, in which a lesbian employee of a Catholic hospital is suing for family benefits.

“If you look in the civil code of Rhode Island, how many times is marriage listed,” Healey said. “It’s not just in the marriage section, it’s in business law, it’s in rental law, it’s in employment law, it’s everywhere. … If that bill that passed in the House is put into law, we would be subject to all types of harassments, lawsuits, litigations.”

Healey makes the extraordinary claim that denying lesbian employees of Catholic hospitals family health benefits is “a long held religious belief.” Healey further claims that his right to discriminate against certain families is being threatened by the marriage equality law. Healey wants the right to open a business, and then discriminate against those his religion deems unworthy of his goods and services. In Healey’s case, this means that LGBTQ citizens need not apply, but other religions might have other ideas, and if their religion demanded different forms of discrimination, the exemptions to the law Healey demands should apply to them as well.

Judge Leon Bazile, in ruling on the Loving v. Virginia case, wrote, “Almighty God created the races white, black, yellow, malay and red, and he placed them on different continents… The fact that He separated the races shows that He did not intend for the races to mix.” Surely this is a “long held religious belief” and under Healey’s logic should be protected by law. Why should we favor Healey’s desire to discriminate over Bazile’s?

Are not both views equally obscene?

As Michaelson explains:

…there should be no mistake: the Right’s “religious liberty” campaign is a key front in the broader culture war designed to fight the same social battles on new-sounding terms, and is part of a movement with old roots in Christian Dominionism (a form of theocracy) and ties to conservative Catholics who launched the antichoice movement. Its deliberate inversion of victim-oppressor dynamic has led to limits on women’s and LGBTQ people’s real freedoms in the name of defending chimerical ones. Proponents may sincerely believe that they are defending religious freedom, but the campaign’s endgame is a “Christian nation” defined in exclusively conservative terms.

And it is thus far inadequately opposed.

David Cicilline and the anti-poverty agenda


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I seem to remember a time when people actually cared about poverty, when poverty was something that society actually wanted to alleviate, when poverty was the social ill and not poor people.  That unfortunately was a long time ago.

Almost 15% of Rhode Islanders live in poverty, close to 155,000 of our mothers and fathers, our sisters and brothers, our daughters and sons.  According to the 2013 RI Kids Count Factbook, “[t]here are 39,900 poor children in Rhode Island, 17.9% of all children.”  One out of ten RI seniors lives in poverty.  In a civilized society that is supposed to take care of the less fortunate among us, this should be totally unacceptable.  In today’s America, this is just another day in paradise

There is a lot of discussion about the “middle class,” and about how to “strengthen” it.  But there is generally little discussion about poverty, its causes, consequences, and solutions (yes… solutions).  When there is discussion about the plight of the poor, it is generally to blame them, either indirectly or directly, for their circumstances.  This is not only offensive to the many, many folks who live their lives every day struggling to make ends meet, it completely ignores the economic realities facing the country and the social bases that perpetuate inequality and inter-generational poverty.

A Google News search for “poverty” yields 149,000 results.  The same search for “deficit” brings back over 1.2 million results.  I’m not sure why this is the case, but I feel the lack of discussion about poverty in the public realm perpetuates the problem, making poverty less visible and therefore “ignorable.”  The closest thing to a full public debate on poverty in recent years was John Edward’s campaign theme of “Two Americas” leading up to the 2004 and 2008 presidential elections.  And while that was particularly striking to me given the state of electoral politics, it was no Lyndon Johnson’s “War on Poverty” ad.

To this point, I am glad that Dem Whip Steny Hoyer recently announced the Task Force on Poverty and Opportunity, if for no other reason than to bring additional attention to a persistent and growing problem.  Equally, I am glad that Rep. David Cicilline has been appointed to it as he is one of the most vocal in Congress about poverty and has been working on his plan for two years to further boost American manufacturing.

These manufacturing jobs would be in sharp contrast to the low-wage work, particularly part-time work, that has been the norm during America’s economic malaise that many people call a “recovery.”  When almost 60% of the total number of jobs created after the recession officially ended is low wage occupations, should we even call it a recovery?  Moreover, the recession’s effects on employment highlight the need for non-employment based programs to reduce poverty.  Focusing only on programs to enhance the income of those who are working, while important, does nothing to help those who are unemployed.  And the longer folks lack a job, the harder it is for them to find another.

Empirical research shows that the loss of a good job during a severe downturn—the job-loss pattern of this downturn—leads to a 20 percent earnings loss lasting 15 to 20 years.  Earnings losses are more severe for long-term unemployed workers who run a greater risk of dropping out of the labor force and falling into poverty.

It’s important to understand that the policies and programs focused on reducing poverty actually work…, you know, when they’re allowed to work.  There are things that can (and should) be done to alleviate poverty in this country, especially in times like these.  When the economy was destroyed by those who have everything but wanted more, forcing misery and destitution on millions of Americans through no fault of their own, the most important thing to do is help ensure people can improve their lives.

I hope this task force will help find more creative solutions to reducing poverty, showing the same sense of seriousness and urgency that prompted Lyndon Johnson to push the Economic Opportunity Act of 1964 through Congress.  They could start by raising the minimum wage, increasing the EITC benefit, prosecuting wage theft, making it easier to join a union, and truly helping the unemployed with job training, entrepreneurship assistance, long-term unemployment benefits, stimulus spending, and even subsidized work.  Maybe then we’ll see another significant decline in poverty as was seen throughout the 1960s.

What’s really wrong with the master lever


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Bob Plain has spent a lot of time in a back and forth with Ken Block about the issue of eliminating the straight-party option (a.k.a. master lever), even bringing in Speaker Gordon Fox to defend its place on the ballot. I’d like to move the debate away from questions of political motivation and toward some facts. My argument is simple; the straight-party option discriminates against the elderly, African-Americans, those with less-education, and those with less experience using technology.

Voting is the interaction of four factors; the voter, the ballot, the machine used to tabulate the results, and the institutions governing the election. Typically studies about how voters behave have to rely on aggregate level data because of the secret ballot. As I will show later we now have micro-level information about voter behavior that will demonstrate problems with the straight-party option, particularly for some groups of voters.

In Rhode Island state law dictates that a paper ballot be used and the names of candidates be arranged by office [referred to in the literature as an office bloc ballot compared to the older party-column design].  Paper ballots are the only way to produce a truly verifiable trail for recounts (though Carlos Tobon can attest other changes in state law are needed to ensure that) and RI shouldn’t consider moving away from their use. There is no better system for verifying the results than the use of paper.

State law also requires use of an optical scanner to tabulate the results. While there are advantages to touch screen voting, particularly for accessibility, optical scanners with the requisite paper ballots are much better than black box touch screen systems. Optical scanners are by no means infallible, just read this scary report from the Brennan Center to see why we need to start auditing the results of our scanners.

The final pieces of the puzzle are our institutional structures. Typically in a Rhode Island election you have a number of different offices (federal, state, local) and ballot questions (state and local) that are a result of the many institutions that govern us. This too plays into why the straight party option is harmful.

Straight-party voting becomes a problem because of the interaction of those four factors.  Optical scanners, for all their positive properties, cannot tell the voter that they have made an inadvertent error on the ballot.  One of the few redeeming qualities of the old mechanical voting machines (sometimes referred to as the lever machines) was that when you pulled the actual “master lever” the only way you could bullet vote was to physically undo your vote for an office and then bullet vote (see pictures) and if you undervoted for it was literally staring you in the face.

Machine with straight-party option not selected.
Machine with straight-party option selected.
Machine with straight party overridden.

Compare the old machine to the current paper ballot (see pictures below).  With the new ballots and scanners if you chose the straight party option nothing on the ballot will tell you what choices you made (or did not make) further down the ballot.  And if you make a change, the ballot does not indicate what impact that might have on other parts of the ballot.

Paper ballot with straight party option not selected.
Paper ballot with straight party option selected.
Paper ballot with straight party option overridden.

Of course because of the secret ballot we cannot know what the voter was really thinking when they used the straight party option and whether what we perceive to be undervotes and errors are intentional.

Fortunately, social science comes to the rescue.  Several political scientists conducted an extensive experiment funded by the National Science Foundation (funding attacked recently in an amendment born out of the ignorance of Senator Tom Coburn) using the same type of ballot and brand of scanner (albeit a newer model) that we have here in Rhode Island.[1]  Because their work was experimental, they could interview voters and examine their ballots to determine if the voters’ expressed preference were captured in the tabulation and thus avoid the ecological inference problem.  And because they were using an experimental design they used a diverse set of participants and could test for how the interaction of ballot [similar in design to Rhode Island], machine [same brand, newer model than Rhode Island], institutions, and humans worked.

The best way to present the results is to quote directly from the authors:

 Our research demonstrates that ballot design matters. It influences the number of errors of commission—that is selecting an unintended candidate—and omission—so-called undervoting.  Voters who use standard office bloc ballots make fewer candidate-selection errors than those who use ballots with a straight-party option. These are the most serious type of error because not only do they deprive a candidate of a vote, they also give it to one of the candidate’s opponents. Wrong candidate errors also occur with substantial frequency—as the 2000 presidential election showed. Ballot style does not have a uniform effect on all voters. Older, less educated, and Black voters, are more likely to commit wrong candidate errors when using a ballot with a straight-party feature than a standard office bloc ballot. The same is true of voters who are using a specific voting system for the first time.[2]

Put into plain English, the researchers found that when using paper ballots with optical scanners and an office block ballot design, older, less-educated, African-Americans and those with less exposure to the optical scan voting machine all had more problems casting the correct vote when the straight-party option was available.  It’s not that they undervoted (failed to cast a vote down ballot), but they actually voted for a candidate other than the one they intended to vote for.  There were instances where the presence of the straight-party option led to undervotes, but that problem was minimized by the optical scan system, and dwarfed by the problem of actual errors being committed by the voters.

In Speaker Fox’s interview with Bob Plain he says, “you have to presume that they [voters] know what they are doing and that they are using the master lever.”  We believe that the analysis we highlight here shows that, unfortunately, many voters do not.  The mix of voters, ballot design, machine type and institutions we currently have just doesn’t work.

Hopefully providing this analysis allows us to move past the arguments about political motivation for removing the straight-party option.  Quite simply, its presence does a disservice to a significant number of voters by preventing them from having their true preferences recorded as a cast vote.  The bill to remove the straight party option has been “held for further study” once again this year.  We have provided all the “study” that is needed to prove that it’s time for it to go.


[1] Paul S. Herrnson, Michael J. Hanmer, Richard G. Niemi, The Impact of Ballot Type and Voting Systems on Voting Errors, April 2008, accessed at http://www.bsos.umd.edu/gvpt/apworkshop/herrnson-hanmer08.pdf.

[2] Ibid, pp. 20-21.

Did Michelle Rhee cheat, as Comish Gist suspected?


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One of the reasons it doesn’t work so well to threaten teachers with their jobs if their students don’t improve their standardized test scores is it incentives cheating. The news didn’t make that big of an impact when it happened recently in Atlanta, but now Michelle Rhee, the superwoman or scourge of the so-called education reform movement, is on the hot seat for potentially overseeing cheating rather than education reform while she was in charge of the schools in Washington D.C.

In a post titled “Michelle Rhee’s Reign of Error,” PBS News Hour education correspondent John Merrow uncovers a new memo indicating Rhee may have had reason to suspect that an overabundance of erasure marks was cause for concern: perhaps teachers were changing wrong answers to show improvement because Rhee’s hard-line reform efforts weren’t producing results.

While the story sheds more light on why high stakes performance metrics may have more in the way of unintended consequences than so-called education reformers are letting on, it’s doubling-interesting for Rhode Island because Merrow reports that Deborah Gist was the first to call Rhee’s attention to the potential concern when our education commissioner worked under Rhee in D.C.

About halfway down the very long story that is making very big waves in the politics of public education:

The official who had spotted the problem and urged Rhee to investigate has kept her mouth shut. Five months after she had informed Rhee of the widespread erasures, Deborah Gist resigned to become State Superintendent in Rhode Island. Rhee now publicly praises her efforts there.Sandy Sanford, who earned roughly $9,000 for his work on the memo, has been paid at least $220,000 by DCPS for various services.

What’s wrong with the ed. reform movement


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Photo by Sam Valorose.

While it is great that so much emphasis is being placed on the misuse of NECAP testing there is much more that needs to be looked at regarding how our present youth population is treated by the education system.

Recent studies indicate that nearly 1 in 5 school aged youth are taking prescription medications. In addition, the abuse of medications like Adderall, Klonopin and Oxycontin has resulted in a number of kids becoming addicted, going to jail and/or overdosing (sometimes death resulting).

I point this out because being a young person today is proving to be more stressful than for the last generation. Sure, each era has its concerns, but for today’s kids the pace of the world is often difficult to keep up with.

In trying to keep up with the tests, extra school requirements, after school activities, friends, navigating through cyberspace, parents etc., etc. some young people either shut down or are given medications to keep up. In an odd way a Cottage Industry has been created – benefiting testing companies, pharmaceutical manufacturers, psychiatrists and so-called education reformers.

While all of this goes on, kids are being exploited and miseducated. With little emphasis on applicability, today’s education system is oftentimes perfunctory. Even kids who ‘keep up’ are cheated. For those who struggle it is remediation, medication, dropping out, counseling and/or a feeling of failure.

We are creating an alienation factory. Too many are prescribed powerful medications so they can remain on the conveyor belt.

There is much more to the NECAP story than just the test. Where once child development was central to how we taught kids – test scores have become the major player. Where once Piaget, Erikson, Gardner and Montessori were discussed, young students are now educated as if in a Dilbert episode.

Addressing the importance of the NECAP is essential. However, doing so is only a part of the battle. The stress being placed on today’s youth is enormous. Somehow we have to step back and look at this.

I am amazed that we are allowing this all to occur under our noses. There are school officials afraid to speak for fear of losing their jobs. There are politicians supportive of all of this reform stuff because it can be supposedly measured by tests. In the end the kids pay the heaviest price. Years from now many will wish they had spoken up.

Conventional wisdom shift on Raimondomania


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I love that Ted Nesi kicked off his weekend column by invoking the concept of conventional wisdom. It’s a topic that came up often last week about why RI Future does what it does in the manner in which we tend do it.

Conventional wisdom, I explained to Ted in an email, is why I devote so many posts to critiquing the mainstream media (here in RI, one newspaper and one or two radio and TV stations each) and the marketplace of ideas (the rest of the collection of communicators who, from Twitter to TV, broadcast our thoughts): for good, bad or indifferent this relatively-random though not-all-that-eclectic chattering class is largely responsible for what the rest of the residents know about Rhode Island. We foment and solidify conventional wisdom.

Think about it: most Rhode Islanders don’t actually know the first thing about life on Smith Hill or local politics beyond the headlines, tweets and soundbites that the chattering class feeds them – some of whom themselves are getting their information second hand! I almost wrote a piece a few weeks back about how, of course, the media is responsible for Chafee’s approval rating – whatever it happens to be – the real question is whether he deserves the approval rating he has.

Conventional wisdom is also what makes Forbes blogger Ted Siedle’s posts on Raimondomania so politically consequential for Rhode Island. He wrote his first post in response to an Institutional Investor article that said she “defies conventional pension wisdom.”

But prior to the Siedle posts conventional wisdom in Rhode Island held that Gina Raimondo was a benevolent reformer who had enriched Rhode Island at the expense of the unions (which, by the way, the chattering class, as an organism, tries real hard to paint as Public Enemy #1). Sure, Mike Downey and I had publicly called her a Wall Street Democrat, but we’re part of what the chattering class by and large sees as the dastardly special interest known as labor. And, for what it’s worth, me and Mike are pretty easily dismissed by said chattering class…

A Forbes.com columnist known as the Sam Spade of Money Management, not so much though.

The Siedle posts pointed out the indisputable fact that the manner in which Raimondo has invested the state’s pension fund will be a huge boon for the hedge fund managers and venture capitalists who get the work while many experts including Warren Buffett believe it is a bad bet for Rhode Island. That hadn’t been reported yet.

I believe the Siedle posts shifted the conventional wisdom on Gina Raimondo. Whereas it once held that she had taken from labor and given to the taxpayer, it now also holds that she then subsequently gambled that windfall with her Wall Street cronies who are the only guaranteed winners in ever-unfolding drama that conventional wisdom dubbed “pension reform” until Forbes.com called it “a money grab.”

Ruggles saved; DOT Chief Mike Lewis loves waves


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No artificial jetty will impede the Ruggles surf break in Newport, according to the Boston Globe as DOT officials have decided to find another way to repair the storm-damaged, tourist-attracting Cliff Walk. Director Michael Lewis, as it turns out, has a special affection for waves.

Surfline reports:

A few minutes before the RIDOT meeting, Director Michael Lewis approached Sid and revealed, as chance would have it, that he himself had some personal interest vested. “He basically took me aside before the meeting and told me, ‘Listen, Sid, we’re not gonna go through with this plan. We’re open for suggestions on how to get around this, but there’s not gonna be any jetties and we’re gonna discuss minimal armor stone. My son actually goes to the University of California at Santa Cruz. He’s a surfer. I just got back from Hawaii myself.’ This is the head of the RIDOT we’re talking about. The main guy. The one at the middle of the front of the table! He and his assistant, Peter Healey, both those guys were right on the money.”

Thanks for tweeting this video, Patrick Anderson of Providence Business News.

Labor asks for state evaluation review committee


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Local teacher union leaders took matters into their own hands at last Monday’s (April 8) Board of Education meeting. Dissatisfied with RIDE’s lack of response to teacher criticism of the statewide evaluation system, a dozen or so presented a letter to the Board asking that a review committee be established at the state level to monitor the evaluation process.  Chariho teacher Bob Mayne read the letter to the Board, but was frustrated further when his allotted two minutes did not allow time to finish.

Mayne said, “The educators of Rhode Island believe in a rigorous, fair and consistently applied evaluation system.  As of now, this Educator Evaluation System meets none of these.  Much feedback has been provided yet it does not feel like anyone wants to listen.  The whole situation is very frustrating.”

Earlier in the year, nearly 5,000 educators signed a petition at www.slowridedown.com that took issue with the use of Student Learning Objectives (SLOs) in determining teacher effectiveness. It’s the comment section of the website that is the most eye-opening – any thoughtful person would find more than enough information there to warrent taking another, harder look at the process. These are real teachers who have strong, legitimate reasons to ask RIDE to reconsider its direction. There’s no better testimony than that.

The text of the letter to the Board is as follows:

As local leaders, we constantly hear from our members about their concerns and issues with the new Educator Evaluation System put into place by the Rhode Island Department of Education. This past February, over 5,000 educators signed a petition, many with personal comments, asking RIDE to slow the process down until it was determined to be a fair and equitable measure to evaluate all of Rhode Island’s teachers and administrators.

We still do not believe that the system is a true measure of an educator’s effectiveness; chief among the concerns is the inconsistency from district to district, within districts, and even within schools. Each district in Rhode Island has its own story and each one can certainly share its concerns and issues with you. We, as a group, will be more than glad to do so as well.

We also want it plainly stated and understood that we as educators believe in a rigorous evaluation system – one that places a premium on improving instruction and helping us grow as professionals. We will be accountable, but to a system that is fair, equitable and proven to be successful.

It is extremely critical that teachers and administrators have confidence in the system, something we believe – in talking with teachers in our own districts and across the state – is currently not the case.

RIDE mandates an evaluation committee at the local level as part of the evaluation process. The committee includes teachers, union representatives and administrators. The purpose of this committee is to resolve issues, inconsistencies, and more. There is no such mechanism at the state level. Teachers and administrators need to have a similar voice at the state level with the Board of Education.

In an effort to address the concerns raised, instill confidence in those being evaluated by the system and to ensure future success, we, the following local NEARI presidents, request that the Board of Education establish an Evaluation Review Committee, made up of a majority of educators, to review the current system, address issues raised regarding the implementation of the new system and make recommendations to the Board of Education for adoption in the 2013-14 school year.

We recommend a 13 person committee: six teachers (two appointed by NEARI, two by RIAFT, and two former Rhode Island Teachers of the Year (drawn by lottery), two principals, two superintendents and three members of the Board of Education.

The Evaluation Review Committee would report back to the Board of Education with its recommendations, no later than July 31, 2013.

 

(Ed. note: Karen Jenkins works for the NEA-RI, which is a frequent advertiser with RI Future. I’ve asked her to submit pieces to RI Future that she thinks would be interesting for our readers because I think our readers like to know what the NEA-RI in general and the labor movement in particular is up to. But me asking her to submit these pieces has no relationship to the NEA-RI spending any money with us – I’d do that whether they advertised or not.)

Master lever politics: Fox responds to Block


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Ken Block

Here’s my unedited interview with House Speaker Gordon Fox, who expressed no small amount of frustration with Ken Block for the way in which he has handled his campaign to make straight party voting more difficult in Rhode Island. Important update: I’m told this is the first time Fox has publicly taken a position on straight ticket voting.

Ken Block surmises that more than 68 percent of the East Side residents who employed straight ticket voting for a Democrat didn’t intend to vote for Gordon Fox, the incumbent Democrat who by the way has one of the most influential seats in state government. Rather than writing that Block is making a circus out of the political process I will note that it is my opinion that he is making an erroneous assumption.

It reads to me like the more-respected/more-articulate political opinion blogger Scott MacKay agrees.

My opinion is that Ken Block is playing incredibly fast and loose with statistics because he knows the media doesn’t have a lot of effective tools for calling out that kind dishonesty. I thought it was a pretty intelligent political calculation until he put this one out there into the marketplace of ideas.

On Stage Together: Carcieri, DePetro, Healey


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The inside of the Odeum Theater before it was renovated. (Photo by George Reed, courtesy of EG Patch)

What do former Governor Don Carcieri, Rev. Bernard Healey and John DePetro all have in common? The three biggest enemies of civil liberties in Rhode Island? Three people only popular on WPRO? Three people who progressives wish kept to themselves?

Even more precisely, these three pillars of Ocean State conservatism will be appearing together, on stage, Wednesday, May 8 at the Odeum Theater in the most infamously Republican town in Rhode Island, East Greenwich. (Ed. note: also RI Future headquarters) They’ll be joined by Alex and Ani CEO Giovanni “John” Feroce – who you may have known was a Republican state senator on Smith Hill from 1992 to 1994.

It’s part of the newly-renovated theater’s “mission of providing a variety of social, cultural and educational opportunities,” according to a press release sent by former Providence Journal and PBN editor Frank Prosnitz, who did not mention exactly which category this trio falls into.

It did say it was the first of a three part lecture series at the Odeum Theater for hometown boy John DePetro. Future guests will be unveiled by DePetro at a press conference today at 1 p.m. at the Odeum, 59 Main St.


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