Whitcomb: Springtime for Public-Employee Unions; Sacklers at Tufts; Wisdom Through ‘Loafing’

Robert Whitcomb, Columnist

Whitcomb: Springtime for Public-Employee Unions; Sacklers at Tufts; Wisdom Through ‘Loafing’

Robert Whitcomb, columnist
“Suddenly, the season has turned:

Geese have come down

from their long flight to savor

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the field’s impossible green

and the pond, one ice edge

peeled back like a tin lid.’’

-- From “Emerald,’’ by the late David Walker,  a Maine poet
 

 

“In the spring, at the end of the day, you should smell like dirt.’’

-- Margaret Atwood, Canadian novelist

 

 

“The receptivity of the masses is very limited, their intelligence is small, but their power of forgetting is enormous. In consequence of these facts, all effective propaganda must be limited to a very few points and must harp on these in slogans until the last member of the public understands what you want him to understand by your slogan.”

-- Adolf Hitler

 

 

Overtime boost for fire fighters
The painful cost of Rhode Island legislators’ predictable support of a bill to assure firefighters of getting overtime pay for more than 42 hours a week of work, thus reducing municipalities’ negotiating power, will become much clearer when the economy turns and tax revenues plunge.  The federal standard for firefighters is that they should get OT for working more than 53 hours a week. Also, reminder: Rhode Island firefighters tend to retire very early, and they get big retirement benefits.

 

It was a two-fer last week for public-employee unions. A House committee cleared legislation to let teachers and municipal employees’ labor contracts continue in effect after their official expiration. This will tend to tie town and city officials’ hands in labor negotiations.

 

These special-interest bills tend to be common in the last stages of a good economy. Then a recession arrives ….

 

 

Ever increasing traffic
Congestion Pricing Is Coming

So-called congestion pricing to control traffic is inevitable in Boston. It’s coming soon to Manhattan, where New York City officials plan to charge a toll, perhaps around $10 a day, for driving below 60th Street, at the southern end of Central Park. The idea, besides speeding traffic flow and reducing the emission of the greenhouse gases that cause global warming, is to use a lot of that money to fix up Gotham’s deteriorating mass-transit system.

 

Uber and Lyft, etc., already in effect engage in congestion pricing by charging higher prices during rush hours.

 

Nick Sifuentes, the executive director of the Tri-State (New York, New Jersey and Connecticut) Transportation Campaign, in a Boston Globe piece, notes that Boston’s traffic congestion is now America’s worst, with New York second. The cost of this, in lost productivity, pollution and mental and physical stress, is immense. Mr. Sifuentes reckons that congestion costs the average Boston commuter $2,291 a year and 164 hours (and growing) stuck in traffic.
 

And building yet more roads and/or widening the ones we have only helps briefly, before those two are filled, in a variant of the Parkinson’s Law “Expenditure rises to meet income.’’

 

He notes that: “The lesson is clear: Increasing road capacity only encourages more people to drive, creating more congestion, dividing neighborhoods, inviting sprawl, and polluting communities near and far from the new roadways. We also know it often isn’t enough simply to offer better public transportation; cities have to encourage drivers to change their habits — and as long as roads are free, there is little incentive for commuters to forego unnecessary trips or increase their use of public transit.’’

 

To read his piece in The Globe, please hit this link:

 

 

No increase in the federal gas tax for more than 25 years
Gas Tax Stagnation

Then we have Robert Poole, writing in that socialist rag The Wall Street Journal, in stout defense of highway tolls to fix the crumbling-in-some-places Interstate Highway System. It’s crumbing in large part because the federal gasoline tax has not been raised since 1993 because of the Republican hatred of any and all taxes even as growing fuel efficiency has further cut into gas-tax revenue to help pay for transportation infrastructure.

 

Mr. Poole, who is director of transportation policy at the (libertarian) Reason Foundation and author of Rethinking America’s Highways, suggests issuing “bonds backed by revenue from an all-electronic, market-priced tolling system that charges drivers by the mile traveled to finance reconstruction’’ of the Interstate Highway System.

 

Messrs. Poole and Sifuentes’s are fair ideas. As the headline over Mr. Poole’s essay says: “If You Drive, You Should Pay.’’

 

Whitcomb on GoLocal LIVE with GoLocal's News Editor Kate Nagle

 

President Donald Trump
Too Many People, Period

President Trump, responding to the desperate Central American families thronging to our southern border, said there is no more room in the U.S. for these people.  Many observers jumped on him, pointing out that there’s lots of open space in the U.S. with our population heavily concentrated in metro areas. Well, that’s true but it’s also misleading, whether applied to the U.S. or any other country and, indeed, looking at the world as a whole.

 

The more people, the more stress on the environment, however widely the population is distributed, especially as long as we depend on fossil fuel for so much of what we do.

 

 

Ford's SUV Growth

In a sort of related development, Ford Motor Co. is boosting its output this year of the biggest, gas-guzzling and very lucrative SUVs for the second year in a row. This reminds me of the surge in production and sales (mostly on credit) of these behemoths in the years leading up to the Crash of 2008 and Great Recession. When the economy slows and/or gas prices surge, a lot of people will suddenly find that they can’t afford to drive these things.

 

 

Black hole
Einstein’s genius

 

“There are more things in heaven and Earth, Horatio, / Than are dreamt of in your philosophy [science].’

 

-- Hamlet speaking in Shakespeare’s play

 

 

The beautiful and eerie image of a black hole – looking like a donut or bagel with orange sauce -- were a triumph of science, and a reminder of the genius of Albert Einstein, whose General Theory of Relativity opened the door to the concept of what would come to be called black holes. He came to think the phenomenon would be so bizarre that black holes were probably impossible. But now we know they are real, yet another reason why the words “Einstein’’ and “genius” have become almost synonymous.

 

 

Lobbyists Win, Taxpayers Lose, Again

Pressure from TurboTax , etc., has killed a proposed provision in a  congressional bill regarding the Internal Revenue Service that would have let the IRS create and provide free online tax-filing software to citizens. Many foreign governments provide such software for free to their citizens, another reason why filing abroad is generally much easier than in the U.S., which has the world’s most complicated tax system.

 

 

Jonathan Sackler, PHOTO: Sacred Heart
The Sacklers and Tufts

A disturbing story in the corrupting money chase in higher education has taken place at the Tufts University School of Medicine. There, the school acted from time to time in effect as a shill for Purdue Pharma. That’s the maker of opioid painkillers whose irresponsible (and worse) marketing of opioids at the relentless orders of the outstandingly greedy and status-obsessed Sackler family, which controls the company, has killed many thousands of patients. In what now seems incredible, people connected with Purdue had asserted for several years that their hugely lucrative drug OxyContin wasn’t addictive. All opioids are addictive.

 

STAT, the health-care news service, reported:

 

“A STAT review of court documents, two decades of academic papers, tax forms, and funding disclosures suggests that the family and company money that went to Tufts helped to advance their interests, generating goodwill for members of the family who were praised for their philanthropy and amplifying arguments about opioids that dovetailed with their business aims.’’

 

At one time, a Purdue executive, Dr. David Haddox, was a professor at the school, where he lectured on pain management.

 

A Massachusetts state lawsuit against Purdue said that the company’s and the Sacklers’ funding enabled it “to control research on the treatment of pain coming out of a prominent and respected institution of learning.’’

 

To read the STAT article, please hit this link:

 

 

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I recommend Joe Nocera’s interview in Bloomberg News of Robin Feldman, a law professor at Berkeley with special knowledge of the pharmaceutical industry. She discusses how drug companies keep prices high by gaming the patent system to keep cheaper drugs off the market and their collaboration with pharmacy benefit managers and other powers.

 

Among her remarks, which you might want to pass on to your druggist:

 

“The PBMs negotiate discounts from drug companies and then help determine patient access to drugs. In theory, that is supposed to encourage PBMs to drive prices down on the drugs. But drug companies have very cleverly turned the system on its head. Before they give a discount to the PBMs, they raise the price each year. …Then the PBM can claim to have negotiated a great deal,  and will pocket the rebates. In return, the drug companies want the PBM to make sure their competitors are disadvantaged….’’

 “The high prices might not be so bad if the patients never actually paid that price. But millions of people do. Thirty percent of people with employer health plans have to pay 100 percent of costs up to a deductible. They pay the high list price….’’
 

“Also, the high prices serve as an umbrella. Generic drug prices can also be high — so long as they are less than the branded drug.’’

 

“Drug companies pay rebates to hospitals. The same is true of doctors, by the way. The hospital charges the patient the sky-high list price. Later in the year, the hospital gets a shiny rebate check from the drug company and pockets the difference, even though you and I have paid the list price.’’

 

Then there’s the well-known strategy of fending off patent expiration of expensive drugs by making tiny cosmetic changes in lucrative brand-name drugs. Anything to keep patients from access to generic, and therefore cheaper drugs.

 

The Magic of the Market indeed!

 

To read the interview, please hit this link:

 

 

Tree show

Wonderful fuzzy look of trees at this time of year as the buds swell toward leafdom but with all the branches still visible.

 

 

They’ll Keep the Money Flowing

“Brown University President Christina Paxson is being amusingly disingenuous when she says re the national college-admissions scandal: “Preferential treatment, real or suspected, for students based on wealth or privilege is corrosive to our community,’’ implying that will change.

 

The preferential treatment will continue. Brown officials will always feel they need a lot more money.  Never enough! About the best we can hope for is that more of the money to be extracted from rich parents, alumni and others will go to scholarships. A 2017 study, by the way, found that at 38 U.S.  colleges in America, including five in the Ivy League – Dartmouth, Brown, Princeton, Yale and the University of Pennsylvania -- more students came from the top 1 percent of the income scale than from the bottom 60 percent.

 

Meanwhile, a reminder: The schools named in the admissions scandals are but a very tiny part of American higher education.

 

 

Mayor Pete is the wonder boy
The Buttigieg Fad

The Pete Buttigieg phenomenon is more likely than not a flash in the pan, at least in this presidential campaign cycle, but interesting nonetheless. The 37-year-old mayor of South Bend, Ind. (whose population is only about 100,000 but the city does have the beloved University of Notre Dame!), Rhodes Scholar and Afghan war vet – and gay – has captured the imagination of many for his thoughtful and charming manner and “progressive,’’ but careful, policy positions.

 

For instance, he wisely wants to gradually expand Medicare and Medicaid, rather than junk the private-insurance system, which Democrats to his left want. He opposes free public higher education, calling it a regressive transfer of tax revenue from the working class to people already heading for higher income jobs, and he only vaguely supports the slow-global-warming-and-create-new -jobs “Green New Deal.’’

 

Mr. Buttigieg also rightly backs statehood for Washington, D.C., and Puerto Rico; they deserve it. I’m leery, however, of his support for ending the Electoral College and expand the number of U.S. Supreme Court justices.

 

It’s his confident, well-informed and folksy Heartland persona that seems his greatest attraction, especially after more than two years of intense corruption and mania in the White House. His gayness and youth may doom him if he decides officially to run in this cycle but after that, anything seems possible in a country whose Electoral College put into the Oval Office a thrice-married crooked real-estate developer and one-time bankrupt casino operator. I assume that Mr. Buttigieg looks particularly good to the under-40 crowd who feel, with some justification, that the Baby Boomers have done enough damage.

 

He told The Wall Street Journal’s Gerald F. Seib the other day:


“The moment that we’re in is kind of illegible in giving us much insight on what comes next,’’ arguing that neither Reagan conservatism nor Bill Clinton centrism may no longer be appropriate in a time of extreme income inequality, among other challenges.

 

 

Hedge Funder vs. Widening Income Inequality

Ray Dalio, founder and co-chairman of Westport, Conn. -based Bridgewater Associates, the world’s biggest hedge fund, is very worried about the future of American capitalism as income inequality widens. The famously tough investor, whose fortune is estimated at about $16.9 billion, thinks that social unrest, even revolution, are possible without a program to reverse what have become over recent decades self-perpetuating and ever-widening divisions in education, health care and socio-economic mobility. It may be germane, by the way, that he predicted the 2007-09 global financial crisis

 

He shows particular concern for how family wealth or lack thereof determines to a great degree the quality of education and how the American health-care “system’’ disfavors the poor so much that they die considerably earlier than their affluent compatriots.

 

In a long report, headlined “Why and How Capitalism Needs to Be Reformed,’’ replete with charts, Mr. Dalio notes:


“While most Americans think of the U.S. as being a country of great economic mobility and opportunity, its economic mobility rate is now one of the worst in the developed world. As shown below {in a chart in his report}, in the U.S. people whose fathers were in the bottom income quartile have a 40% chance of staying in that quartile and only about an 8% chance of making it to the top quartile, which is half of the average probability of moving up and one of the worst probabilities of the countries analyzed. In a country of equal opportunity, that would not exist.’’  To read the paper, please hit this link:

 

Bloomberg News notes that he recommends new taxes on the rich that wouldn’t undermine the economy’s productivity (which was very high in the prosperous and high-tax ‘50s and ‘60s) and use the money to help those in low-and-middle-income groups. He also wants to create, in Bloomberg’s words, “more private-public partnerships to invest in projects on the basis of their social and economic performance.’’ (I like the idea of a massive public partnership to improve the nation’s physical infrastructure – that would help everybody.)

 

To make a sort of direct financial statement about what should be done, Mr. Dalio will give $100 million to Connecticut as part of a $300 million, five-year plan to boost public education and socio-economic mobility in the state, which, mostly because of rich Fairfield County, still has among the nation’s highest per-capita incomes, as does Massachusetts. (Rhode Island’s is pegged at around 17th highest.) The state would kick in $100 million and other charities $100 million. Perhaps this will encourage other rich folks to contribute a bit more to public-sector programs and less to rich private-sector institutions.

 

 

Barr Keeps the Fix In

Trump picked William Barr to be his lap-dog attorney general at least in part because Barr wrote a memo last June, while still in private life, to Justice Department officials asserting that presidents can’t be charged with obstructing justice because of their inherent constitutional powers.  

 

Now Barr seems to doing everything he can to keep secret some evidence, detailed in the Mueller report, of the Trump campaign’s participation in the successful Russian efforts to elect him. He’s also operating a smoke machine for Trump by vaguely but corrosively insinuating that there might be something wrong about the FBI surveilling one or more people in the 2016 Trump campaign who were communicating with Russia, probably referring to Carter Page, who has had very close links to Vladimir Putin’s regime.

 

Trump’s entire career has featured the heavy, and sometimes expert, use of smoke machines.


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