Crazy-making: A look at 3 aspects of the news

The quality of news coverage itself is deteriorating, but worse is the decline in our ability to address topics as diverse as the ownership of the LA Dodgers, tax reform, and withdrawal from Afghanistan.

Warren Buffett and President Obama in an Oval Office meeting in 2010.

Pete Souza of the White House/Wikimedia Commons

Warren Buffett and President Obama in an Oval Office meeting in 2010.

Afghan National Police in a training exercise.

Tech. Sgt. Efren Lopez (U.S. Air Force)/via Wikimedia Commons

Afghan National Police in a training exercise.

I don't know about you, but there are things that drive me nuts.

I recently spent nearly 48 hours watching Fox News and MSNBC to the exclusion of other electronic news sources. Two supposed news channels peddling non-stop partisan and ideological propaganda.

The exercise was particularly painful for me because, in the old days, I had known both present Fox and MSNBC headliners in their earlier incarnations as old-style journalist and White House and legislative staff member, respectively. (I had been a frequent default guest on both networks in the 1990s because my D.C. office was minutes away from their studios and I could show up on short notice). Both men, in their networks' infancy, had been doing an objective, professional job.

Bothered by the two channels, I then began compiling a mental list of other things that were driving me nuts.  You may or may not share some of them.

  • The Los Angeles Dodgers sale: The so-called Magic Johnson group recently purchased the Dodgers for a record price of $2.35 billion — double the highest price previously paid for a professional sports franchise — from Frank McCourt, whose mismanagement and massive personal spending of team funds had sent the franchise into bankruptcy.

Part of the deal involved the purchasers' assumption of more than $400 million in debt run up by McCourt. At the end of the day, McCourt walked away with what amounted to nearly $1 billion for himself.

McCourt's unearned bounty was only the first reason for surprise, however. Research by New York Times  business columnist Andrew Ross Sorkin disclosed that the real principal purchasers, Mark Walter and his firm Guggenheim Partners, were planning to use money for the purchase from Guggenheim Partners' insurance companies, some state-regulated. Was this a prudent or even permissible use of insurance-company funds? Walter earlier had been quoted in The Times as stating, "I don't want to realize a return on investment on buying the Dodgers." Say what?

The next highest bidder for the Dodgers, fund manager Steven Cohen, offered $500 million less than the Johnson/Walter group. Even Cohen's offer was considered extravagant and beyond the Dodgers' present and prospective value. One can envisage possible lawsuits from several directions over the transaction and, possibly, Securities and Exchange Commission and state-insurance commission inquiries.

Fox's Prime Ticket, which owns the Dodger TV rights, filed an objection Tuesday (April 10) in U.S. Bankruptcy Court seeking written assurances that its competitor, Time Warner, was not contributing money for Guggenheim Baseball Management's purchase of the team and asked for parts of the purchase agreement not filed with the court. Major League Baseball also filed an objection, stating that the team had set aside only $322,000 to pay for its debt of at least $8 million to MLB.

A hearing to confirm the sale agreement is scheduled for Friday before a U.S. Bankruptcy judge. Did the lords of baseball perform due diligence in examining and discarding multiple offers before approving the Johnson/Walter group's? Commissioner Bud Selig, the former Milwaukee auto dealer who entered baseball by pirating the Pilots from Seattle, is known as an empty yes man for a small group of influential owners.  This is beyond his pay grade.

  • Dishonest political posturing on a marginal issue: Exhibit A at the moment is the dueling postures of President Barack Obama, and his Republican opposition, in debating the tax rate to be paid by the richest Americans.

Billionaire Warren Buffett, doing a little personal grandstanding, set all this off months ago by stating that he paid a lower tax rate than his secretary — not surprising since most of Buffett's income, presumably, comes from investments while his secretary's no doubt comes from salary. Obama and congressional Democrats have run with the issue. A U.S. Senate vote will take place next Monday (as the income tax filing deadline comes up) on legislation to establish a 30 percent minimum tax rate on those earning more than $1 million per year.

The legislation is expected to fail but to provide grist for Democrats in their continuing emphasis on tax increases for the wealthy (and the expiration of the Bush tax cuts on Dec. 31). Republicans argue that the minimum tax would impede job-creating investment by upper-income folk.

I have little patience for either argument. There are many ways for the wealthy, at any level, to shelter their taxable income and thus avoid the tax.  It also is questionable just how much job-creating investment would be stifled by the new rate for the $1-miilion-a-year and over crowd. Not much, is my guess. The ultimate irony lies in the fact that enactment of the so-called Buffett Rule would generate estimated revenue equaling less than 1 percent of the deficits projected in Obama budgets over the next 10 years.

I keep wondering why the GOP does not also support the legislation, since it means so little substantively. To appropriate the old description of college-faculty politics: The struggle is so intense because the stakes are so small. A far more serious and substantive argument, from all sides, should take place over Obama's current proposal to increase capital-gains tax rates. But, right now, debate about the trivial is overshadowing discussion of the significant.

  • Our continuing negotiations with the Afghan government about U.S. forces' continuing role after their official departure date in 2014: Already the present Afghan government, Taliban leaders, and regional tribal leaders are discussing how power and spoils will be divided in the short term. Why should we want to have forces present in 2014 and beyond? For what purpose? At what price?

President Obama is stuck with his publicly declared timetable for a U.S. disengagement. But he should welcome any reason for a clearout sooner. The end result is likely to be the same whether we withdraw tomorrow or several years from now. We have no vital interests at stake there and there is no justification for continuing expenditures of American lives and money. Our NATO partners will embarrass us by withdrawals well ahead of our own.

Neighboring Pakistan is important; so is neighboring Iran. But not Afghanistan. On considering its strategic importance, one is reminded of Henry Kissinger's famous description of Argentina's strategic importance: a dagger aimed at the heart of Antarctica.

Our presence in Afghanistan is no more necessary now than it was in Lebanon and Somalia when we cleared out of those places — and certainly less than it was in Iraq when we finally departed there. Even previously hawkish national Republican leaders are beginning to question our continuing Afghan role.

Obama should declare victory and leave the longest military engagement in our history.


About the Author

Ted Van Dyk has been involved in, and written about, national policy and politics since 1961. His memoir of public life, Heroes, Hacks and Fools, was published by University of Washington Press. You can reach him in care of editor@crosscut.com.

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Comments:

Posted Wed, Apr 11, 9:01 a.m. Inappropriate

Interesting choice of issues. Let me comment on the tax issue.

http://www.youtube.com/watch?v=rnpG6qCltCw

Watch this video above of Ronald Reagan championing exactly the same issue as President Obama is today. Ronald Reagan spoke in 1985 of a letter he received from 'an executive who is earning in 6 figures'.

What's puzzling is why, in 2012, the exact same policy is considered personal grandstanding and grist for the Democrats where as in 1985 it was considered conservative, fair policy.

Posted Wed, Apr 11, 11:02 a.m. Inappropriate

Kudos on Afganistan.

"I keep wondering why the GOP does not also support the legislation, since it means so little substantively."
If you're going to be a national politics pundit specializing in promotion of the wonders of non-partisan politics , you might want to absorb the fact that the current Republican line is 'No Common Ground with Obama'. Yes, Republicans are partisans and they're very good about behaving that way. Better than that loose collection of politicians of various leanings claiming the Democratic brand. If they discover some common ground, refer to the line. Richard B's excellent link illuminates the results of that approach very well.

Damning Selig for stealing the Pilots excuses many complaints, Thank You! But who if not the Commissioner of Baseball should be in charge of deciding on ownership proposals? His pay grade of $10M per annum doesn't get much higher. Goldman Sachs. perhaps? Certainly a fine example of how insider grifters loot public wealth for personal gain without public benefit. An all-too popular contemporary theme in business and politics.

NickBob

Posted Wed, Apr 11, 11:02 a.m. Inappropriate

Good comment by Richard Borkowski. I'd like to see TVD actually take a position on President Obama's proposal to increase the capital gains tax, a la Ronald Reagan, rather than engaging in even-handed scorn for both sides, which really is false equivalence. BTW, the statement that Afghanistan in the longest U.S. military engagement ever is dubious. If you count 1961 as the start of our adventure in Vietnam, that was a longer war. See this excellent perspective piece on the "Vietnam Syndrome" and Afghanistan.
http://truth-out.org/news/item/8439-the-afghan-syndrome

Posted Wed, Apr 11, 11:16 a.m. Inappropriate

Forgot to add that the top rant about modern journalism while using Fox and MSNBC is also typical in another way. While complaining about terrible reporting of these networks, TVD speaks of his personal connections to the offending "headliners" and then doesn't call them out by name, absolving them of any responsibility thereby. Be the change you seek, Mr. Van Dyk- or are your personal relationships with these men (and they would be men, wouldn't they?) more important than offering public criticism of their work?

NickBob

Posted Wed, Apr 11, 11:18 a.m. Inappropriate

This is an appropriate moment to quote Paul Krugman's dead-on comments about "bipartisan centrist" commentators:

http://www.nytimes.com/2012/04/09/opinion/krugman-the-gullible-center.html?_r=1&hp;
Well, ask yourself the following: What does it mean to be a centrist, anyway?
It could mean supporting politicians who actually are relatively nonideological, who are willing, for example, to seek Democratic support for health reforms originally devised by Republicans, to support deficit-reduction plans that rely on both spending cuts and revenue increases. And by that standard, centrists should be lavishing praise on the leading politician who best fits that description — a fellow named Barack Obama.
But the “centrists” who weigh in on policy debates are playing a different game. Their self-image, and to a large extent their professional selling point, depends on posing as high-minded types standing between the partisan extremes, bringing together reasonable people from both parties — even if these reasonable people don’t actually exist. And this leaves them unable either to admit how moderate Mr. Obama is or to acknowledge the more or less universal extremism of his opponents on the right.

Posted Wed, Apr 11, 11:56 a.m. Inappropriate

Thanks for the early comments. I plead guilty to not naming the Fox and MSNBC
anchors who have transitioned from serious journalism to party-line advocacy.
There was a time when I respected both and prefer to remember them that way.
They are incidental, in any case, to the point that both networks now calculatedly tilt their programming toward identifiable groups in the marketplace---in this case, political true believers on the two ideological flanks. It's all about ad revenue.

On tax reform and other policy: I do not counsel non-partisanship. I have always been and will remain personally a Democrat. I do, however, counsel bipartisanship when it is necessary to address big national problems. Among other things, it is next to impossible now to pass an important Senate bill
unless the majority party can muster more than 60 votes. Legislation can be jammed through on a one-party basis---if the majority party has enough strength to do so. But, historically, vital and significant legislation has required
at least some support from across the partisan aisle---literally in the Congress, figuratively in the country. It is particularly dangerous that we are polarized now, when the financial system and economy are still fragile and
bipartisan cooperation would be needed to address any fresh rescue effort.

On taxes, I've written often about the need for comprehensive tax reform, which would include a thorough scrubbing from the tax code of the many preferences,
subsidies, loopholes, deductions, and other breaks which favor the politically connected but distort economic activity and reduce the federal revenue base. I thought the 1986 Bradley tax reforms were a good start---fewer brackets, lower rates, elimination of expensive tax breaks. (We need exactly the same medicine, by the way, in Washington state). But, since then, these so-called "tax expenditures" have become more prevalent than they were in 1986. Broad tax reform can only be successful if undertaken on a bipartisan basis.

The optimal cap-gains tax rate would depend on the overall tax code in which it existed. The U.S. cap-gains rate is generally higher than in many other industrialized countries. On the other hand, levels of investment do not depend wholly on that rate. So both President Obama and GOP candidate Romney should be expected in the fall campaign to offer us complete reform packages, not bits and pieces such as the politically appealing but basically meaningless gesture of taxing more highly those earning over $1 million annually. As I've made clear, I see no reason to oppose such a measure. But we should not fool ourselves into thinking its adoption would have any real effect on the larger financial and economic landscape. I like the fact that the President and Rep. Ryan have issued dueling budgets which could serve as points of departure for real, substantive fall debate. The country needs that.

We also need bipartisanship in addressing entitlement-program reform. The
bipartisan Simpson-Bowles Commission, appointed by Obama, came up with
solid proposals there (as well as for tax reform). But the President chose not to support its recommendations. Several House-Senate bipartisan efforts,
based on Simpson-Bowles, have gotten nowhere because they lacked support from the administration and congressional leaders of both parties.

The point of all this: You can make short-term political points, whether Democrat or Republican, with tactical proposals which generate applause among
those disposed to support them. But, to do anything real or important, you've got to reach wider and generate support among independent voters and moderates in the other party. Otherwise you can win an election and, then, find yourself
unable to govern after the swearing-in. If you want to know what that is like, consider the situation since January, 2011.

Posted Wed, Apr 11, 12:53 p.m. Inappropriate

What this country needs is genuine tax reform, not an increase in tax-law complexity. Real reform broadens the tax base, eliminates targets and exemptions, and reduces rates. A perfect example of how messed up our tax code is can be found with the business tax. The US has the highest statutory business tax rate in the world (something like 35%) yet large corporations who can employ whole departments filled with tax accountants and lawyers can, if they play the system astutely (like GE infamously did in 2010) pay next to nothing in actual taxes. This is fine for giant firms, but it punishes the small to midsize firms that account for most of the innovation and growth in our economy. Bereft of legions of tax experts, they're the suckers stuck with the statutory rate.

The president can't complicate the tax code into fairness. And the fact that he thinks he can is just one more example of how he is totally ignorant of some of the most fundamental principles of economics. A business tax code which, in essence, said "How much profit did you make last year? Send us 20%" would work wonders for the economy. Yet neither Republicans nor Democrats are likely to champion such a reform because it would destroy that which they hold most dear: The power to order the affairs of others who just want to be left alone.

dbreneman

Posted Wed, Apr 11, 1:50 p.m. Inappropriate

Congratulations on an excellent piece. Some of this could even qualify as Serious Woofing -- high praise indeed! Who says an old dog can't learn a few new tricks?

The exponential increase in information generated by the electronic age has produced a more than exponential increase in deceit, hypocrisy and plain old mental laziness. We are drowning in fatuous nonsense and our public discourse suffers for it. I don't know that there is a simple answer to this problem, but at least a necessary first step is to stop pretending to take knavery and foolishness seriously. Crap is crap -- and needs to be so identified in explicit terms. This article is a move in the right direction.

woofer

Posted Wed, Apr 11, 2:30 p.m. Inappropriate

We're still waiting for TVD to take a position on raising the capital gains tax. Contrary to his assertion, raising taxes on wealthy people would have a major impact. Just letting the Bush tax cuts for wealthy people expire at the end of the year would produce hundreds of billions in revenue over 10 years.
http://www.csmonitor.com/Commentary/Opinion/2011/1102/Super-committee-Let-Bush-tax-cuts-expire-and-your-work-will-be-done
http://www.americanprogress.org/issues/2010/07/let_cuts_expire.html
That would go a long way toward paying for health insurance subsidies under the Affordable Care Act, reducing the impending cuts in military spending which Republicans and Leon Panetta are screaming about, or simply reducing the deficit. Hard to see how that's "meaningless," as TVD claims.
It's also worth reading Matt Bai's piece on why the Obama-Boehner "grand deal" broke down to see which party was willing to compromise and which party was not.
http://www.nytimes.com/2012/04/01/magazine/obama-vs-boehner-who-killed-the-debt-deal.html?_r=1&scp;=1&sq;=bai&st;=cse

Posted Wed, Apr 11, 7:40 p.m. Inappropriate

I entirely disagree with the statement in the article that FOX Noise Channel and MSNBC are both propaganda channels, as if they are equivalent. Not even close.

The Trayvon murder case is clear evidence of the differences. Fox came out portraying the 16 yo murder victim as a thug who beat the crap out of George Zimmerman. They interviewed Zimmerman's father who said his son feared for his life and that Trayvon bashed his head against the sidewalk and broke his nose. When the police video was aired and clearly showed Zimmerman was lying as there was no shred of any broken nose, or blood or gashes, Fox continued their propaganda war, in defense of the legalized murder laws in Florida.

Contrast this to MSNBC, who has consistently questioned the 'facts' of this case and they interviewed the parents of Trayvon Martin. Far from being a propaganda channel, MSNBC should be congratulated for keeping this story alive and stirring the outrage of millions of people around the country who want justice for this 16yo boy who was murdered by Zimmerman.

Now that George Zimmerman has been charged with 2nd degree murder, it's plain to see that Fox is the propaganda station and MSNBC is not. MSNBC did what media is supposed to do. Namely, dig through the facts when government agencies (and other media outlets) are clearly engaged in a coverup. Kudos to MSNBC. This murder case is going to be one of the top stories of the year as it exposes the NRA's advocacy of legalized murder laws in many states throughout the nation.

Posted Thu, Apr 12, 10:03 a.m. Inappropriate

Buffett’s antics are a distraction from the real consideration of the Bush tax cuts and their stated and agreed upon provisions that they EXPIRE AT THE END OF 2010. The pending 30 percent minimum tax talks hopefully will also fail and the emphasis be returned to following the sunset provisions contained in the Bush bills.

Taxes aren’t preventing job-creating investment by upper-income folks…it’s just good old fashioned GREED.

jmrolls

Posted Sun, Apr 15, 12:52 p.m. Inappropriate

Ted Says-
"We also need bipartisanship in addressing entitlement-program reform. The
bipartisan Simpson-Bowles Commission, appointed by Obama, came up with
solid proposals there (as well as for tax reform). But the President chose not to support its recommendations. Several House-Senate bipartisan efforts,
based on Simpson-Bowles, have gotten nowhere because they lacked support from the administration and congressional leaders of both parties."

Sorry, Ted, but the Simpson Bowles commission was crippled by its "bipartisanship" and DID NOT make any "solid proposals".
In fact, they could not agree on anything, and the commission made NO proposals whatsoever.
Simpson and Bowles, themselves, did, indeed make a list of recommendations- but far from being the result of a bipartisan commission, it was the work of 2 guys who arent very far apart ideologically- both are pretty right of center.
They could not get 14 of the 18 members of the commission to agree. And those commissioners were hardly left wing anarchist bomb throwers- it was solid centrist democrats, nobody very left of center.

And, the chairman's report recommended 1 part revenue increases to 3 parts spending cuts- and Obama proposed an even more conservative budget- 1 part revenue increase to 4 parts spending cuts- and the republicans heartily refused it out of hand.

Ries

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