Why not single payer?

by Steve, March 29th, 2009

politicsI’ve been pretty hands-off on the new prez, at least publicly. But I keep asking myself a couple things. First, why they hell haven’t we nationalized the banking system yet? Second, why the hell isn’t Obama talking about single payer health care?

(Of course we knew ahead of time that Obama is something of a market fundamentalist, so we already know the answer to those questions.)

“Medicare for all” is the smartest thing we could do for the economy. It would eliminate the wasteful, burdensome, redundant and immoral private health insurance racket in one fell swoop, and eliminate the leading cause of personal bankruptcy in the US.

Even if Obama isn’t willing to consider it, circumstances may eventually force the issue. Meanwhile, a grassroots groundswell is building, with Laborer’s Local 483 among Portland unions to endorse passage of HR 676, the United States National Health Insurance Act.

I urge you to join with the laborer’s in calling your US Rep and encouraging them to support HR 676.

Portland’s urban renewal piggy bank gone bust?

by Steve, March 13th, 2009

politicsThis week’s celebrity slap-down between city commissioner Randy Leonard and county chair Ted Wheeler may signal the beginning of the end of an era in Portland development. (Warning: wonkishness ahead.)

First, let’s talk about how urban renewal, a.k.a. Tax Increment Financing (TIF), is supposed to work (and has, in fact, worked in some cases in Portland).

  • City leaders identify a part of the city that is “blighted” and draw a line around it. This is an Urban Renewal District (URD). Ideally (though state law is vague on this), “blighted” would mean that the property values within this area are stagnant of falling.
  • The city identifies infrastructure projects that would spur private investment to improve the property values in the URD, and borrows money (through the issuance of municipal bonds) to pay for these projects. For the life of the URD, property tax on incremental increases in the value of properties is diverted from the usual recipients (city, county and school district general funds) to pay off the bonds. So, for example, if a property within the URD increases in value from $100,000 to $125,000 in the first year, all of the property tax on the additional $25K in value goes to pay off the bonds.
  • When the bonds are retired, the URD can also retired, and the city, county and school district all receive higher revenue because of the increased value of the properties.

Now, that’s how things are supposed to work, but even in this best case there are plenty of critics. Minority communities have frequently been displaced, so urban renewal is broadly viewed as a tool of gentrification by those being “renewed” further to the fringes of society. But it gets even worse when the process is inverted as it was with the Major League Soccer deal.

Instead of identifying a blighted area, then determining infrastructure needs, city leaders identified a suposed need (renovation of a municipal stadium — whose recent renovation is still being paid off — to accommodate a private sports team investor), and then tried to create an urban renewal area to help fund it. Among other problems, the area around the stadium is distinctly not in danger of stagnant or falling property values. It is prime urban real estate, with a great deal of recent high-end commercial development.

This new urban renewal district (taken out of the deal by amendment before the deal was approved) would have directly deprived struggling county, school district and city general funds of millions of dollars over its life time.

It’s entirely disingenuous to claim the properties around PGE Park will not increase in value without another renovation to the stadium, and that we thusly wouldn’t be taking money from the county or schools.

Even Randy Leondard, while protesting that the debate has been uninformed, ultimately seemed to concede the point. Yes, we take the money, he seemed to say, but we’ve always been there for the county in times of need (“Good as we’ve been to you!”). And look at all we’ve build with it! It’s a very paternalistic attitude, and that was not lost on Ted Wheeler.

The reality, beneath the veneer of a bunch of euro-trash wannabe soccer fans rallying for a “major” league team, and urban renewal boosters’ insistence that building new stadiums for millionaires is the best kind of economic stimulus we can do, is that Merritt Paulson is in over his head with his baseball lease at PGE Park. His triple A Portland Beavers draw just over 25% of capacity. Paulson is paying not just current rent, but also back rent for the previous millionaire failure of a minor league sports team owner. That’s a gift to Portland’s civic leaders, who have egg on their face for that previous failure (not to mention the bonds they have yet to retire from the previous renovation).

Paulson’s lease is up in 2010, and if he takes his team to Tuscon, we’re stuck holding the bag on PGE Park’s last renovation with no tenant to pay for it.

Most of Portland’s glitzy development, including its tightly stretched bubble of a condo market, has been subsidized with urban renewal dollars. City leaders have taken advantage of vagaries in state law to use urban renewal as a piggy bank to subsidize Portland’s wealthiest land owners and create “iconic” projects for their own portfolios.

In the end, it’s about civic priorities. If we draw URDs around areas where property values are not stagnant, we directly impact city, county and school district general funds that pay for basic social services, schools, and infrastructure for the rest of the city. Maybe that’s what we truly want as a city. But let’s be clear about it when we do so.

A lot of this TIF mania can be traced to members of the old Neil Goldschmidt gang and the local commercial real estate mafia that has been their patrons. With our first publicly financed city commissioner (Amanda Fritz) leading the loyal opposition to this latest boondoggle, and with emboldened county chair Wheeler and school board co-chair Trudy Sargent at her back, maybe we’re seeing the beginning of the end of this kind of irresponsible finance scheme.

Well, a guy can dream, can’t he?

Industrial Portland

by Steve, February 8th, 2009

M/V Campanula and M/V Pharos SW

In transition

New and old

Sustainable, of course

Sustainable Portland

Atheists, welcome. Socialists? Not so much.

by Steve, January 20th, 2009

politicsI should be thrilled, as an atheist, to be on President Obama’s short list: “Christians and Muslims. Jews and Hindus — and non-believers.” Seriously. For all the God goin’ around today (some of it a tad — ahem — intolerant), I was surprised to get an atheist shout-out. (As for my Sikh, Buddhist, Wiccan, Pagan, Confucianist, Shintoist, Jainist, Bahá’í, and agnostic brothers and sisters, they may not feel so special being grouped in with us non-believers.)

Less surprising was President Obama’s ode to the market and its “power to generate wealth and expand freedom.”

Well, it’s sure provided the idle rich with a lot more wealth and freedom over the past 30 years, but any student of economics knows the market doesn’t create wealth. It merely distributes wealth, which is created from capital and raw materials by human labor. The market has proven itself very adept at the upward redistribution of wealth from those who create it to those who finance it.

Obama’s proposed trillion dollar (we all know it’ll get there) stimulus plan is a bastard child of New Deal-style public works investment and Reagan-era trickle down (better-termed “shovel up”) economics.

Them rich capitalist bastards don’t need any damned retro-active tax breaks. In fact, we need to levy a wealth tax on their accumulated capital, and use it to finance even more public investment. The kind that not only builds roads and schools, but also reinforces our tattered social safety net with universal cradle-to-grave health care.

Don’t get me wrong, folks. I’ve been doing the happy dance all day, ‘cuz George W. Bush went riding off into the sunset today, and the election of Barack Hussein Obama II is undoubtedly one of the most important milestones in our nation’s history. His suspension of the kangaroo court at Gitmo is a significant ray of hope, even as he continues the jingoistic talk of being “at war, against a far-reaching network of violence and hatred.”

(The notion of a “war on violence” is more ironic than a “war on terror” is risible, and equally absurd, isn’t it?)

So much for a new New Deal

by Steve, November 26th, 2008

Obama’s selection of Paul Volcker and Austan Goolsbee to head his economic team says it all.

Volcker, Fed chairman under Carter and Reagan, is the architect of modern fiscal policy (“monetarism”) that manipulates interest rates (that is, the supply of money) as a tool to control growth and inflation (vs. the previous policy of targeted interest rates). In the face of stagnant growth and persistent inflation, Volcker ratcheted up interest rates, with the prime ultimately hitting 21.5%. This contributed to the 1981 “Reagan recession”, then the largest economic downturn since the Great Depression. Yes, he “licked inflation” (of which wage growth is a major component) to the delight of Wall Street, but at the cost of millions of jobs.

Goolsbee is a University of Chicago economist. Yes, that “Chicago School”, bastion of libertarian market fundamentalism. Naomi Klein, in The Nation June 12, wrote that Goolsbee is

on the left side of a spectrum that stops at the center-right. Goolsbee, unlike his more Friedmanite colleagues, sees inequality as a problem. His primary solution, however, is more education–a line you can also get from Alan Greenspan. In their hometown, Goolsbee has been eager to link Obama to the Chicago School. “If you look at his platform, at his advisers, at his temperament, the guy’s got a healthy respect for markets,” he told Chicago magazine. “It’s in the ethos of the [University of Chicago], which is something different from saying he is laissez-faire.”

So when Obama talks about creating 2.5 million jobs, one may wonder whether he will attempt to do so by continuing the bipartisan Bush bailout of the greedy corporate sluts who got us into this mess, or if he’ll follow the lead of FDR and invest directly into the creation of jobs.

With Volcker and Goolsbee having his ear, you’ve got to assume he’s not going to start with FDR-style Keynesianism (even if conditions ultimately force that course). Unfortunately, it’s looking like Obama is going to take a detour through modified Hooverism before he gets it right.

So you want to be a barista

by Steve, November 21st, 2008

Maybe it’s the economy. Or maybe it’s just the way evil do-gooders do business. But have you ever seen a five-page application (PDF) to work in a coffee shop?

Besides the usual work history and contact information, they want you to write a short essay about why you want to work at Ladybug Organic Coffee Company. They also give you a cutesy “pop quiz” with the following questions:

  • Please tell us about a time that you provided excellent customer service. (Well, there was that one time at Mickey D’s…)
  • What one thing makes you absolutely stand out above the rest? Why should we hire you over applicant X? (Because I wasted an hour of my life answering these ridiculous questions?)

Okay, no big deal so far, but then it starts getting good:

  • What is the most important thing that you have ever learned and how has it changed your life? (Well, there was that time I stayed up all night drinking Mountain Dew driving a school bus to a Grateful Dead concert, then took a Xanax to get a couple hours of sleep before waking up and dropping acid for the show. I learned to never, ever, sleep under the school bus after the show, because some drunk deadhead might come and pee on your leg. Man, what a show, though. Jerry changed my life that night.)
  • What are your greatest strengths, the things about yourself that cause you greatest pride? (Ah, pride, that deadly sin that employers always want us to indulge in. Well, I’m pretty proud of my gluttony and sloth! And I’m pretty good with lust, too.)
  • What are your greatest weaknesses, the things about yourself that you could benefit the most from working to improve? (It’s okay to have weaknesses! Unless of course, you’re Superman or Wonder Woman!) (Dude! Speaking of lust! Wonder Woman! Wonder Woman! All the world’s waiting for you, and the power you possess! In your satin tights, fighting for your rights and the old red white and blue! Wonder Woman! Wonder Woman!)
  • Tell us about your best friend and why they are a part of your life? (Would that be my best real or imaginary friend?)
  • What is something that you do on a regular basis to make the world a better place? (I believe… Just by waking up every day, and walking lightly on Mother Earth, and smiling at strangers, I make the world a better place.)
  • What is one thing that you think would make Portland a better city? (Ooh! Ooh! Ooh! I got this one: More coffee shops?!?)

Then there’s a whole series of yes/no questions:

  • I can usually work weekends. No.
  • I get along well with many different types of people. Yes, as long as they’re cool.
  • I am always upbeat and positive Always? Uh, well, no, I guess not. I mean, I’m mostly always upbeat, just not always.
  • I can work during most holidays. No.
  • I enjoy working evenings. No. I mean, wait, that means I can sleep in, right? Yes.
  • I am a problem solver. Depends. What kind of problem?
  • I enjoy getting up early. I prefer staying up until it is early. Is that a problem?
  • I like to work by myself. Absolutely! Then I can smoke out in the cooler.
  • I pay attention to details. When I come out of the cooler, all the details are so, like, intense, man!
  • I am a good listener. I’ve listened to every bootleg of the Dead at least six times
  • I like to clean. Who doesn’t? Whenever I’m out of weed, I clean my roommate’s bong and get a couple good hits out of it.
  • I am a quick learner. What was the question again?
  • I can multi-task. I can kick a hacky sack while reciting the set lists from the Dead’s last six shows at the Greek Theater in Berkeley.
  • I am self-motivated. Everything’s cool, man. Stuff will get done.

And finally: “Last question. What one word describes you best and why did you choose that word?”

I’d have to say “cool.” Because if you’re not being cool, man, you’re being uncool. Nobody likes it when you’re uncool. I think it would be cool to work at your coffee shop! Is there, like, a dress code or anything?

The future of news

by Steve, November 14th, 2008

Here’s the lunch panel from the Society of Professional Journalists‘ “Building a Better Journalist” conference last month in Eugene (I wrote a little preview here). This panel, moderated by Rob Smith, editor of the Portland Business Journal, featured Steve Engelberger, managing editor of ProPublica, Steve Smith, former editor of the Spokane Spokesman-Review and Frank Mungeam, online editor at KGW, Portland’s NBC affiliate.

These guys have some distinctly different ideas on the future of the newsroom, and, more importantly, how it will be funded.

The future of news from SPJ Oregon/SW Washington on Vimeo.

Keating Economics: How John McCain helped create the current melt-down

by Steve, October 6th, 2008


Yes, it’s from the Obama campaign, but it’s must-see for anybody who’s forgotten (or wasn’t around for) the S&L meltdown. Like Joe Biden said, “past is prologue.”

Fritz v. Lewis: The City Club Debate

by Steve, September 20th, 2008

election08Amy Ruiz does a great job capturing the blow-by-blow on the Merc’s blog, so if you didn’t hear Friday’s city council debate, you might want to check that out before reading this.

I pointed out in a comment on Ruiz’s piece the one glaring factual error in the debate, Lewis’ claim that Jefferson High School is “1/4 full” and David Douglas is bursting at the seams because of the lack of affordable housing in inner Portland.

Gentrification and displacement of non-white communities is a serious problem in Portland, and I appreciate Lewis’ attention to this. But it has nothing to do with Jefferson’s (or Madison’s, Marshall’s or Roosevelt’s) under-enrollment.

These schools are under-enrolled because Portland Public Schools has allowed the majority of high school students in these clusters to transfer out while they have dramatically cut educational and extracurricular opportunities.

For example, out of 1,603 PPS high school students living in Jefferson’s attendance area last October, only 403 were enrolled there, along with an additional 142 from other neighborhoods. The balance of Jefferson’s student population attended other PPS neighborhood schools (437), Special Programs/Focus Options (423), with the rest in PPS Charter Schools, Special Services or Community Based Alternatives.

So Lewis is factually incorrect to blame Jefferson’s under-enrollment on the lack of affordable housing even though he is correct that affordable housing is a serious problem (something he and Fritz clearly agree on).

I can’t expect Lewis to be as well-versed in public schools policy and demographics as me, but he’s made this statement before, and it is just plain wrong.

Fritz, by contrast, spoke to the City Council when they met at Jefferson last January. She told them about the injustice of the inequity in opportunity between schools like Jefferson and Wilson, her neighborhood high school, demonstrating a clear understanding of a critical problem facing PPS.

On other issues, Lewis showed himself to be reasonably well-informed, though it’s almost an embarrassment to try to compare his 10 years of experience in the non-profit sector (and a couple years as a small business owner) to Fritz’s 20-year history as a community organizer, public citizen and advocate for equitable, transparent governance.

Lewis is wise to dwell on his business experience, since his public policy experience ends at the intern level. But it all started sounding like “Ethos yada yada started from zero yada yada Ethos yada revolving credit for small businesses yada yada yada Ethos yada started on my credit card yada yada yada make payroll yada yada staff of 75 yada yada yada Ethos…”

People are quick to defend Ethos, and I don’t want to beat up all the low-wage teachers and volunteers there who have brought music to the lives of kids that otherwise wouldn’t have much.

But there’s a certain charity mentality to it. I wrote about it in a comment on PPS Equity last July:

My complaint is with the misconception that Ethos solves the problem of PPS not funding music education in poor schools.

…Lewis perpetuates this myth, as in this quote (since removed) from the Ethos Web site: “When budget cuts threatened to destroy music education programs in Portland Public Schools, Charles stepped in and found a solution.”

It’s not a solution; it’s not even a band aid.

These organizations foster a charity mentality toward the least well-off among us, and … give political cover to policy makers who maintain a system that takes pretty good care of students in wealthy neighborhoods but not in others.

I am a to-the-death supporter of arts education in our schools. Which is why I point out that Ethos reaching a couple thousand students with some small amount of music education is no substitute for an integrated K12 music curriculum, taught by certified, union-represented teachers, for all 47,000 PPS students.

I don’t see any way Ethos is helping us get to that realistic goal (they’re doing it in Beaverton with the same level of state funding and even less federal and local funding). To the contrary, I think Ethos may work against this vision.

In the end, I was pleased that Lewis stayed positive and did not reveal his bombastic side, which was on display in the Willamette Week endorsement interview for the primary (and in his supporters’ comments on this blog and others). In that, besides going after John Branam about his salary as a PPS employee, Lewis seemed to cite his beef with PDC snubbing Ethos as a major reason for wanting to be on the City Council.

He seems to be maturing as a candidate, and I agree with him (as does Fritz, I believe) on several critical issues. But there’s little doubt who’s really the best prepared to lead, and to lead in the direction Portland needs to go.

Amanda Fritz has been significantly involved with the official planning of Portland’s future, and is uniquely qualified to bring citizen’s voices into City Hall and implement the Portland Plan. I stand by my primary endorsement and say “Fritz for City Council!”

Labor creates all wealth

by Steve, July 31st, 2008

I was looking for a bumper sticker with this message, and couldn’t find one that I liked.

So I made a couple myself.