Opinion

The Great Debate

from Stories I’d like to see:

Sealing deadly court files, and Obama and his Cabinet

1. Sealing deadly court files:

In the wake of continuing disclosures about General Motors’ failure to acknowledge critical safety issues related to faulty ignition switches, there’s a looming issue that has not been addressed: How litigation settlements negotiated by private parties can result in court-sanctioned cover-ups that endanger the public.

We now know that there were several cases in which the families of people who died in crashes after ignition switches failed quietly received cash settlements from GM.

In return for the cash, the plaintiffs not only promised to withhold the settlement details but also agreed with GM that the court files would be sealed. In some cases, those sealed records included documents and transcripts of pre-trial deposition testimony that contained evidence gathered about the dangers of the faulty switches.

As this editorial in USA Today points out, “Outrageous as it sounds, such secrecy is routine. Powerful companies and institutions regularly suppress information about public risks, ranging from incompetent doctors to abusive priests to defective products.”

One reason the secrecy is “routine” is that both parties involved benefit. The plaintiff -- and the plaintiffs’ lawyers -- get a quick cash payout. The defendant gets the case killed without the bad publicity and the wave of suits that could come from a public trial, let alone an adverse jury verdict.

Post Rwanda: Invest in atrocity prevention

In the 20 years since the horrific 1994 genocide in Rwanda and its terrible spillover into the Congo, it has been clear that the global community remains ill-equipped to address such human-made catastrophic tragedies.

While many have worked to heal Rwanda, crises of unfathomable mass violence have continued to unfold in places like Sierra Leone, the former Yugoslavia, Sri Lanka, Sudan, South Sudan, Central African Republic and Syria. In each case, the international community has failed to live up to a global commitment to prevention, protection and accountability for mass crimes.

War and mass violence not only halts development, it reverses it — scarring the lives and memories of new generations.  This creates traumatized societies — one of the biggest factors contributing to conflict.

America: The anecdotal nation

In America today, anecdotes have become the new facts.

Consider Obamacare. Opponents have produced ads featuring apparently ordinary Americans telling stories about the travails forced upon them by the Affordable Care Act. One ad, financed by the Koch brothers, highlighted a leukemia sufferer named Julie Boonstra, who claimed that Obamacare had raised the cost of her medications so much that she was faced with death! Pretty dramatic stuff — except that numerous fact-checkers found she would actually save $1,200 under Obamacare.

But what are you going to believe — a sob story or a raft of statistics about the 7.5 million Americans who have signed up and the paltry 1 million folks who had policies canceled?

Or take global warming. Anecdotally speaking, conservatives have insisted that global warming must be a hoax because we have had such cold winters — never mind the scientists who have documented the Earth’s rising temperature. But what are you going to believe — the seasonal chill or the consensus of thousands of climate scientists whose data overwhelmingly support global warming?

from Nicholas Wapshott:

The EU-U.S. love-hate relationship

The elaborate gavotte between the American and European economies continues.

While the Federal Reserve has begun to wind down its controversial quantitative easing (QE) program, the European Central Bank (ECB) the federal reserve of the eurozone, has announced it is considering a QE program of its own.

It is a belated acknowledgement, if not an outright admission, from Mario Draghi, president of the ECB, that five years of the European Union’s austerity policy has failed to lift the eurozone nations out of the economic mire. The ECB has presided over a wholly unnecessary triple-dip recession in the eurozone and sparked a bitter rift between the German-dominated European Union bureaucracy and the Mediterranean nations that must endure the rigors imposed from Brussels. All to little avail.

If there are any “austerians” left standing, let them explain this. Ignoring the cries of the unemployed and those pressing for urgent measures to promote growth in Europe, the ECB blithely imposed its punishing creed, arguing that there would be no gain without pain. The result? Little gain, endless pain.

Liberals are winning the language war

Are conservatives linguistically challenged? Or are they just naïve enough to think they can win the battle of ideas with — ideas?

Okay, and money.

Conservatives, like liberals, will spend huge amounts of money this year to get their ideas across to voters. But what they fail to do is bundle their thoughts into a bright, shiny linguistic package that explodes in the face of their enemies when opened.

The left has assembled a rich lexicon of phrases that serve either as stilettos that can be turned again and again in the guts of their opponents, or shields that obscure their true intentions.

Ryan and the code words of race

It’s official. The House of Representatives has passed the federal budget for fiscal years 2015 through 2023 that was submitted by the House Budget Committee — a.k.a. the Ryan budget, after the Budget Committee’s chairman, Representative Paul Ryan (R-Wis.) — and the troops are on the march.

The subject line of one e-mail from the Democratic Campaign Committee’s rapid response team is: “1,000,000 Strong Against the Ryan Budget.” They are soliciting signatures to demand rejection of “any Paul Ryan budget” that “puts Big Oil and billionaire tax breaks before the 47 percent.”  There will be an “important debate,” says Representative Chris Van Hollen (D-Md.), ranking member on the Budget Committee, about the Ryan budget’s “lopsided set of priorities.”

Van Hollen is right — there will be a debate. But as we saw in the recent eruption over Ryan’s remarks about the absence of a work ethic in the nation’s inner cities, the debate will be obscured and twisted by the issue of race — as it has been for the past 50 years. The conversation will be marked by familiar code words and formulas.  It will do nothing to heal the endlessly searing wound that the Ryan controversy exposed in the individuals who bear it or make the wound more real to those who don’t.

An election Democrats can win

Obamacare versus Ryanomics. That’s the battle line for 2014. It’s also a battle Democrats can win.

Why? Because most Americans are pragmatists. Pragmatists believe that whatever works is right. Ideologues believe that if something is wrong, it can’t possibly work — even if it does work. That’s the Republican view of Obamacare: It’s wrong, so it can’t possibly work.

But it now looks like Obamacare may work. More than 7 million people signed up for health insurance by the March 31 deadline, meeting the Obama administration’s original goal. Senate Majority Leader Harry Reid (D-Nev.) said, “The Affordable Care Act, whether my Republican friends want to admit it or not, is working.”

Massad: Taking the reins on derivative reforms

The Senate Agriculture Committee met Tuesday to approve the nomination of Tim Massad as chairman of the Commodity Futures Trading Commission, even as the agency fumbles over the definition of a “swap.”

When Massad testified at Senate hearings last month, he stated flatly that speculation can affect prices. Then, he hedged. “There are many, many factors that affect prices,” Massad added, “and sometimes it’s difficult to measure what the impact is of any particular factor.”

While he pledged to pass limits on the number of contracts that commodities speculators can hold, this hazy testimony reflects how little is really known about how the new CFTC chairman, if confirmed, will shape the derivatives market.

from Breakingviews:

Rob Cox: Crazy valuations not only sign of bubble

By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Crazy valuations – even after a recent dip – are not the only signal that parts of the U.S. stock market, particularly internet companies, are in bubble territory. The willingness of investors in hot initial public offerings to accept second-class stock and governance that favors insiders suggests an imbalance between providers of capital and its consumers. Add head-scratching market caps based on contorted metrics, and this risks storing up trouble when the inevitable headwinds arrive.

The best description of the stock being hawked in this way is “coattails equity.” It offers little beyond a chance to tag along with entrepreneurs from Wall Street, Silicon Valley and China. Buyers of shares in IPOs such as those of Box, GrubHub, Moelis & Co, Virtu Financial and Weibo – and probably $100 billion-plus giant Alibaba – must give up rights that have traditionally accompanied the ownership of common shares, like a representative voice in corporate decisions.

Revising Obama’s ‘deporter in chief’ policy

In response to angry complaints from the Latino community about the administration’s deportation policies, President Barack Obama ordered a review in March “to see how to conduct enforcement more humanely.” At the same time, however, White House officials said the administration would neither suspend deportations nor expand the opportunities to stay for illegal immigrants who came to the United States as children.

That will not mollify his critics. Nor should it.

In a February speech, Obama had spoken movingly and from personal experience about the damage done to black and Latino young men by the loss of a father and the appallingly high number of fatherless homes.  Yet a month earlier, immigration officials had deported Josue Noe Sandoval-Perez. He “had been in the country for 16 years,” according to the New York Times,had no criminal record, paid taxes and was the primary breadwinner for his children – one an American citizen, the other [son] an immigrant who is here legally.”

In Obama’s five years in office, his administration has deported nearly 2 million undocumented immigrants, largely Latinos — reaching a new high of nearly 420,000 in fiscal year 2012. It took President George W. Bush his entire two terms to deport as many people as Obama has in five.

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