Archive for October, 2017

PettJ20171013_low

When I read about Scott Pruitt’s trip to Hazard, Kentucky to announce the gutting of Barack Obama’s signature policy to curb greenhouse gas emissions from power plants, I immediately turned to Dwight Billings—a West Virginia native, Professor Emeritus of Sociology at the University of Kentucky, and preeminent scholar of Appalachia—to provide some context. I am pleased to publish this guest post by him. (Interested readers might also want to take a look at Billings’s review of J. D. Vance’s Hillbilly Elegy.)

Scott Pruitt, Administrator of the currently misnamed Environmental Protection Agency, and Senate Majority Leader Mitch McConnell (R-Kentucky) traveled to Hazard, Kentucky in the economically depressed coalfields of Appalachia on 10 October to proclaim that the Democrats’ purported “War on Coal” was over—even though it was a war that was barely ever fought.

They came to announce the rollback of President Obama’s Clean Power Plan, his administration’s effort to reduce the 2030 CO2 emissions of electricity-generating plants by 32 percent compared to 2005 levels, a key plank in the United States’ agreement to the 2016 Paris Accord on Climate Change that Trump has since revoked. The Clean Power Plan was to be achieved by cutting back on coal burning, substituting natural gas and renewable power sources (wind and solar), and encouraging conservation. But the EPA plan was never implemented. since it continues to be held up for review in the D. C. Circuit Court of Appeals. As Attorney General of Oklahoma, Pruitt—climate change denier, advocate of fossil fuels, and now head of the EPA—led the charge by 27 fossil-fuel producing states to challenge the Obama EPA policy in court.

Despite Trump’s promise to Appalachian coal miners that they would be “going back to work” if he were elected, industry analysts suggest that annulling the Clean Coal Plan will actually do little or nothing to increase mining jobs in Central Appalachia, where the rollback was announced and where nearly 12 thousand mining jobs in eastern Kentucky (84 percent) have been lost since 2009. Aging coal-fired generating plants are being shuttered due largely to a combination of market factors—not regulation as Republicans and industry spokespersons claim—including the abundance of cheap natural gas (due to a hydraulic fracturing boom) and the rapidly declining costs of renewables. Domestic and international declines in coal demand since the 2008 depression and the longer-term effects of mechanization and surface mining also account for job loss. Further, as Appalachia’s richest coal seams are mostly depleted, Appalachian coal is becoming harder to recover. Surface mines in Kentucky produce on average only 3 short tons of coal per employee hour compared with the rate of 30 short tons per hour in the vast surface mines of Wyoming, Kentucky’s chief rival, which now account for more than 40 percent of the nation’s coal.

So why would Republicans announce their gutting of the Clean Power Plan in Hazard rather than, for instance, Wright, Wyoming? Several factors are at work.

11-us-wyoming-black-thunder-coal-mine-890

Black Thunder mine, in Wright, Wyoming

Trump has often proclaimed that he “loves” coal miners. Kentucky employs more miners than any other state except West Virginia. The iconic image of Appalachia’s hyper-masculine, hardworking, and self-sacrificing miners, ready to go back to work if only given the chance, better supports his administration’s public relations stunt in Hazard than would pictures of the monstrous earth-moving machines that dig massive amounts of coal with few employees in Wyoming or Appalachia. After all, the promise of jobs always trumps the environment, even when there aren’t any.

002

Mountaintop removal near Hazard

And then there’s Hazard itself. (The irony of its name has not been lost on environmentalists who point out the hazards in the Trump/Pruitt plans to derail efforts to prevent climate change.) Located In the heart of Kentucky’s Appalachian coalfields, Hazard is the county seat of Perry County, eastern Kentucky’s second largest coal producer and once its greatest. Thousands of acres across Perry County have been ravaged by decades of strip mining and mountaintop removal. One fourth of its people live in poverty. Far more of Hazard’s residents are employed in education and healthcare than coal mining, but coal has been the town’s historical lifeline and curse. One of Hazard’s favorite sons is billionaire coal baron Joe Craft, President and CEO of Alliance Resource Partners (ARP), the second largest coal producer in the eastern United States and one of the largest holders of coal reserves in the nation. Craft grew up in Hazard where his father was a coal lawyer and his grandfather, also a coal lawyer, was mayor in the 1920s. Like Pruitt (who also grew up in Kentucky and now lives in Tulsa), Craft is currently a Tulsa, Oklahoma resident (ARP is headquartered there with an office in Kentucky). But he maintains close ties to Hazard and is a major donor to Hazard’s Center of Excellence in Rural Health. Also like Pruitt, Craft is a Republican, a close associate of the Koch brothers, and, through his organizations, a million-dollar contributor to Trump’s presidential campaign. Craft’s hometown may not win any mining jobs from its renewed oath of fealty to King Coal, but its credentials as a foot soldier in Trump’s war on the climate have probably been secured.

mitch

Finally, there is Mitch McConnell. Despite his vast war chest of campaign funds, McConnell is vulnerable. He is on the outs with Trump, and his aura as a Congressional wizard has been tarnished by his failure to bring a legislative end to Obama’s Affordable Care Act. Senators on the Republican right are calling for him to step down from his leadership position in the Senate. And, he is widely despised back home in Kentucky. With an approval rating of only 18 percent there, McConnell is the least popular of any U. S. Senator at home. Currently, only 37 percent of Kentuckians report they would reelect him. Small wonder then that McConnell would jump at the chance to remind Kentucky voters of his role in helping to end the fictive “War on Coal” he had helped to construct.* After all, he did much the same less than three weeks earlier when he toured Kentucky with new Supreme Court Justice Neil Gorsuch whose appointment he had helped to engineer—a trip the Associated Press described as a “home turf victory lap for McConnell.”

Victory laps and theatrical displays of symbolic politics, however, will not bring coal mining jobs back to eastern Kentucky, nor help the region move toward an economic future beyond coal. ** As a Lexington Herald-Leader staff writer asked the day after the Hazard ceremony, “How long will Kentuckians continue to be suckers?”***

 

*Earlier this year, McConnell pushed through Congressional repeal of the Obama Administration’s 2016 “Stream Protection Rule,” which had sought to protect water quality near mountaintop removal mine sites and was eight years in the making.

**Gone now, too, is the Obama Power Plus Plan that would have invested a billion dollars from the Abandoned Mine Lands fund in post-coal redevelopment. Trump has also proposed eliminating funding for the Appalachian Regional Commission which channels federal dollars toward economic diversification and job training in the region.

***Kentucky voters may have been suckered by Trump in the general election, but eastern Kentucky voters in the coal field counties and all West Virginia counties supported Sanders in the presidential primary election, an expression of frustration with politicians’ neglect of rural areas and an indicator of a desire for change.

Priggee

Special mention

download  201367

Inequality

The latest IMF Fiscal Monitor, “Tackling Inequality,” is out and it represents a direct challenge to the United States.

It’s not just a rebuke to Donald Trump, who with his allies is pursuing under the guise of “tax reform” a set of policies that will lead to even greater inequality—or, for that matter, Republicans in state governments across the country that have sought to cut back on programs targeted at poor Americans. It also takes to task decades of growing inequality in the United States, under both Democratic and Republican administrations.

As is clear from the chart above, the distribution of both income and wealth in the United States has become increasingly unequal since the mid-1970s. The share of income captured by the top 1 percent has more than doubled (from 10 to 20 percent), while it’s share of total wealth has increased dramatically (from 23 percent to 39 percent). Meanwhile, the share of income of the bottom 50 percent has declined precipitously (from 20 percent to 12.5 percent) and it’s share of wealth, which was never very high (at 0.9 percent), is now nonexistent (at negative 0.1 percent).

And what is the United States doing about it? Absolutely nothing. Over the course of the past four decades it’s done very little to tackle the problem of growing inequality—and what it has done has been spectacularly ineffective. Thus, inequality has grown to obscene levels.

What’s interesting about the IMF report is that it raises—and then challenges—every important argument made by mainstream economists and members of the economic and political elite.

Should we worry just about income inequality? Well, no, since “changes in income inequality are reflected in other inequality dimensions, such as wealth inequality.”

redistribution

Doesn’t the United States take care of the problem by redistribution? Absolutely not, since only Israel does less than the United States in terms of lowering inequality (as measured by the Gini coefficient) through taxes and transfers.

But doesn’t tackling inequality through progressive income taxes lower economic growth? Again, no: “There is not strong empirical evidence showing that progressivity has been harmful for growth.”

taxes

Nor is there any justification for low tax rates on those at the top in terms of social preferences. Most Americans, according to a recent Gallup survey, most believe that the rich and corporations don’t pay their fair share of taxes. In fact, the IMF notes, perhaps thinking about the United States, “societal preferences may not be reflected in actual policy implementation because of the concentration of political power in certain affluent groups.”

Clearly, much more can be done to lower the degree of inequality in the United States.

As a sign of the times, the IMF even chooses to discuss the role a Universal Basic Income might play in decreasing inequality.

Proponents argue that a UBI can be used as a redistributive tool to help address poverty and inequality better than means-­tested programs, which su er from information constraints, high administrative costs, and other obsta­cles that limit benefit take-­up. A UBI could also help address increased income uncertainty resulting from the impact of technology (particularly automation) on jobs.

UBI

According to its calculations, a Universal Basic Income in the United States (calibrated at 25 percent of median per capita income, in addition to existing programs) would cost only 6.5 percent of national income and achieve a remarkable reduction in both inequality (by more than 5 Gini points) and poverty (by more than 10 percentage points).

What puts the United States in stark relief is the contrast between the whole panoply of inequality-reducing policies that are available—from more progressive income taxes and the adoption of wealth taxes to reducing gaps in education and health programs—and the fact that the United States is moving in the opposite direction.

The United States is simply not tackling the problem, with the inevitable result: current levels of economic inequality are—by any measure, and especially in comparison to what could be but isn’t being done—grotesque.

the_middle_class__omar_al_abdallat

201381  PettJ20171012_low

 

grilling_the_earth__bern_fabro

Special mention

BergeP20171012_low  Stick-em-Up_1024

HandsP20171011_low

Special mention

PettJ20171011_low  Guns of the World

Bloody hell!

Posted: 13 October 2017 in Uncategorized
Tags: , , ,

static1.squarespace

Over the years, I’ve written about many different dimensions of the relationship between health and economic inequality on this blog—from children’s brain development to car crashes.

But, as Kat Arney [ht: ja] explains, “Unpicking the biological connections between external socioeconomic forces and an individual’s health is no easy task.”

Now apparently, researchers in England are beginning to unpick those connections, by measuring biological markers in the bloodstream. And what they’ve discovered is fascinating—and disturbing.

1200

Apparently, measuring the levels of two molecules—an individual’s C-reactive protein and fibrinogen (as in the charts above)—and matching them against their socioeconomic position starts to reveal the hidden mechanisms connecting social inequality and health. And the missing link turns out to be stress.

“You have stressful life events such as bereavement or divorce, but we’re talking about understanding chronic long-term stresses,” Kumari says. “One of the things we think about is why is disadvantage stressful? For something like low income, it could be because you don’t have the same levels of control over your life. Maybe you can manage it for a little while, but over the long term it becomes a chronic stress. These things are hard to measure and capture.”

Bartley agrees more needs to be done to understand the financial causes of stress across society. “Debt is deadly for people – it’s the ultimate lack of control,” she says. “Housing is also a huge issue and it doesn’t get researched enough – living in poor situations is depressing, especially if you’re bringing up children. People in poverty can end up in social isolation, and that’s known to be associated with all kinds of unhealthy outcomes.”

From a policy perspective, if you know when health inequalities begin and when they peak, it becomes possible to target these age groups and allocate resources more effectively. A far more effective response, of course, would be to eradicate the grotesque inequalities that characterize contemporary society.

Toward this end, public health experts might suggest eliminating capitalism, which would decrease stress and improve people’s health.