# Economy



Mid-week open thread: Ripoffs, real and imagined

Here’s an open thread: all topics welcome.

The Iowa Policy Project has called wage theft “an invisible epidemic” costing Iowa workers an estimated $600 million each year. Click here for a few examples of how wage theft works. Last week the Iowa Senate approved on party lines a bill to address common forms of wage theft (full text here). However, that bill is not moving in the Republican-controlled Iowa House.

Joseph Williams published a depressing account of his short career in low-wage retail after losing his journalism job. Even though he made more than minimum wage, it wasn’t enough to cover basic expenses. Williams also experienced wage theft and the small humiliations inflicted by “loss prevention” policies.

The Center for Public Integrity’s Daniel Wagner wrote a disturbing piece about aggressive debt collection tactics targeting Americans doing military service.

Sometimes feeling cheated and getting a raw deal are very different things. After the jump I’ve posted an excerpt from a Detroit News feature on a Michigan woman now starring in a television commercial attacking health care reform as “unaffordable.” Turns out she will save quite a bit of money under her new “Obamacare” health insurance–but she doesn’t believe it. Classic case of cognitive dissonance.

Your unintentional comedy for the week is a letter to the editor from the March 7 Des Moines Register, in which a man complains of being ripped off at a “Duck Dynasty” speaking engagement.

After shelling out a considerable sum for a VIP meet-and-greet session, I arrived to stand in line with over 300 other VIP patrons. I was told I would have 7.5 seconds with each of Willie and Phil Robertson. When I finally made it to their table, I was rushed through in seconds. I handed my Bible to Phil for an autograph and he scribbled an illegible name. My “VIP Seating” ended up being in the 15th row next to non-VIP patrons who paid nearly one-tenth the price of my experience.

When the program started, Willie spoke about the makings of their show. Phil then took the stage with a few minutes of duck-calling, followed with a lengthy rant about how Americans are being denied the rights written in the United States Constitution.

Disgusted, I got up and left before it ended. The event was nothing but a marketing scheme that took money from hard-working Americans.

A marketing scheme–who could have guessed? But seriously, isn’t it blasphemous to ask a television celebrity to sign your Bible?

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Branstad joins lawsuit against California law on egg production (updated)

I’m always fascinated when conservatives who claim to support “states’ rights” cry foul when another state enacts a law they dislike. In 2008, California voters approved Proposition 2, a law designed “to prohibit the cruel confinement of farm animals,” including new rules on conditions for egg-laying hens. State lawmakers later passed and Governor Arnold Schwarzenegger signed a law extending those rules to producers of any eggs sold in California. Representative Steve King (R, IA-04) tried but ultimately failed to insert language in the federal Farm Bill overturning California’s law, which will affect Iowa egg producers when it becomes effective on January 1, 2015. King argued that the law violates the Commerce Clause of the U.S. Constitution, creating an illegal trade barrier between states.

Since President Barack Obama signed into law a five-year Farm Bill that does not include King’s amendment, attorneys general in Missouri, Nebraska, Oklahoma, Alabama, and Kentucky have filed a federal lawsuit challenging the California law. Governor Terry Branstad announced yesterday that he has joined that lawsuit on Iowa’s behalf. Details are after the jump, including excerpts from the court filing and statements released by Branstad and King.

I am not an attorney, much less a specialist on the Commerce Clause, but I doubt the plaintiffs will succeed in overturning the California law, for three reasons: 1) the law does not “discriminate”; 2) the law does not force any conduct on egg producers outside the state of California; and 3) overturning this law would prompt a wave of lawsuits seeking to invalidate any state regulation designed to set higher standards for safety, public health, or consumer protection.

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A Plea to Liberals to Reconsider Position on Minimum Wage

(Bleeding Heartland welcomes guest diaries on policy or politics.   - promoted by desmoinesdem)

We liberals have been fighting the wrong battle with the Minimum Wage.  I am not sure whether liberals understand the economics of the minimum wage and choose to ignore them, or whether we just don’t understand basic principles of economics.  I can’t do much about the former, but I can at least shed some light on what actually happens when we raise the minimum wage.

We liberals all share a fundamental belief that government has the power and the resources to improve the standard of living of the poor and the middle class in this country.  Because we have the power and the resources, we have an obligation to take action to do so.  But we should also do no harm in the process, especially to those whose lives we are trying to improve.  The Earned Income Tax Credit is a more efficient way to accomplish our objectives, at a lower cost to society as a whole, with fewer unintended consequences that end up hurting poor people.

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Mid-week open thread: Stimulus anniversary edition

What’s on your mind, Bleeding Heartland readers? Here’s an open thread: all topics welcome.

Monday marked the fifth anniversary of President Barack Obama signing the American Recovery and Reinvestment Act (better known as the federal stimulus) into law. Bleeding Heartland has long held that the stimulus mitigated the impact of the “Great Recession,” in part because the package saved Iowa and other states from enacting deep cuts in public services and . The stimulus had flaws, stemming primarily from the president aiming too low on the size of the package and concessions made to win a handful of conservative votes in Congress.

After the jump I’ve posted more links on the recovery act’s impact.

P.S. – The dumbest thing I’ve read this week was Kevin Hall’s comment for The Iowa Republican blog about former State Senator Swati Dandekar, a candidate for Congress in the first district. “Swati Dandekar is obviously an intelligent and accomplished woman. However, she speaks in broken English and I don’t think that translates very well to a wide electorate.” Reality: Dandekar’s English is very fluent. Having a noticeable accent is different from not speaking a language well. I would like to hear Hall try to talk in a non-native language.  

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Grassley, Senate Republicans again block unemployment benefits extension

On Thursday Republicans in the U.S. Senate again successfully filibustered efforts to extend unemployment benefits for an estimated 1.7 million people whose benefits ran out at the end of 2013. Senate rules still require 60 yes votes to approve most motions and bills, with the exception of budget legislation and most confirmation votes. As Ramsey Cox reported for The Hill, Democrats fell one vote short of the 60 needed to end debate on extending unemployment benefits. The roll call shows that four Republicans and all Democrats present voted yes, except for Senate Majority Leader Harry Reid, who switched to “no” to preserve his right to bring the bill up again later. Iowa’s Senator Chuck Grassley was among the 40 Republicans who filibustered the effort to end debate.

A little later, Senators rejected a separate procedural motion to end debate on the bill to extend unemployment benefits by a mostly party-line vote. Again, Senator Tom Harkin voted to end debate, while Grassley was part of the Republican filibuster.

A similar story played out last month when Senate leaders attempted to move a bill extending unemployment benefits. Grassley and most Senate Republicans failed to block a motion to proceed to debating the bill and failed to table the measure by sending it back to the Finance Committee, but successfully kept Senate Democrats from getting the 60 votes needed to end debate on that bill. Harkin repeatedly voted to advance legislation on extending the benefits.

In a statement enclosed below, Harkin vowed that the latest vote “is not the end of the line” and said he will keep fighting to extend unemployment coverage workers “have earned and so rightly deserve.”

I have not seen any statement from Grassley directly explaining his refusal to extend unemployment benefits, but after the jump I’ve posted relevant excerpts from a floor speech he gave last month, objecting to limits on the Senate minority’s ability to offer amendments during floor debate.

Also on Thursday, senators confirmed longtime Senate Finance Committee Chair Max Baucus of Montana to be the next U.S. ambassador to China. The vote was unanimous, except that Baucus himself voted “present.”

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Weekend open thread: Affordable Iowa edition

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread.

Des Moines continues to make national news as a place with a generally high quality of life. This week NBC’s Today show named Iowa’s capital as “the city where regular folk can live a rich life,” because the “cost of living is almost 10 percent below the average for the country.” Last summer, Forbes magazine named Des Moines the country’s best city for “business and careers,” noting it was “the only place that ranks among the top quartile in at least nine of the 12 metrics we graded the cities on.” Previous research indicates that Des Moines has “one of the shortest commute times in the nation with an average commute of about 19 minutes.”

But given that Iowa wages skew lower than salaries in many other metro areas, how affordable is Des Moines, really? The U.S. Department of Housing and Urban Development and the U.S. Department of Transportation recently launched a Location Affordability Portal that takes into account “the percentage of a family’s income dedicated to the combined cost of housing and transportation in a given location.” (I’ve posted more explanation after the jump.) The algorithm takes into account that many Americans are now spending more on transportation than on rent or mortgage payments, so you can’t just look at housing costs when deciding whether a particular neighborhood is “affordable.”

On this page you can search by a specific address, a zip code, city, county or state to pull up information on average household income and how much a household in that area could expect to spend on housing and transportation.

Windsor Heights (zip code 50324) has a “location affordability” rating of 42 percent. The average household could expect to spend 25 percent of annual income on housing and 17 percent on transportation. Affordability numbers on the west side of Des Moines (50311) are similar. The near north side of Des Moines (50314) is more affordable, and the combined average cost of housing and transportation is lower still on the south side (50315) and around downtown (50309).

Residents in the Iowa City zip code of 52242 can expect to spend less on transportation (16 percent of annual income) but a lot more for housing (39 percent), for a total location affordability of 55 percent. The Cedar Falls zip code of 50613 has a nearly identical combined affordability rating as downtown Iowa City (54 percent), but residents can expect to spend less on housing (29 percent) and more on transportation (25 percent)–unless they take advantage of the bicycle-friendly atmosphere in Cedar Falls.  

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Iowa Republican lawmakers who voted for the last minimum wage increase

Iowa Senate President Pam Jochum and House Minority Leader Mark Smith both called for raising Iowa’s minimum wage in their opening remarks to fellow legislators yesterday. Increasing the minimum wage from the current level of $7.25 would raise earnings for roughly 332,000 Iowa workers, according to a 2012 estimate. It would acknowledge the reality that “the minimum wage does not keep a full-time worker out of poverty.”  

Governor Terry Branstad said last week that a minimum wage hike is “not part of my agenda,” suggesting that job training and efforts to attract high-skilled jobs would be sufficient. Iowa House Speaker Kraig Paulsen indicated that he sees a minimum wage increase as “[m]aking it harder to be an employer in the state of Iowa.”

However, appearing on Iowa Public Radio’s “River to River” program yesterday, Senate Majority Leader Mike Gronstal pointed out that Branstad signed a minimum wage increase during the 1980s and that Paulsen had voted for the January 2007 bill that raised the wage. On the same program, Iowa House Majority Leader Linda Upmeyer acknowledged that there may be support for a minimum wage increase in her caucus, since at least half of current House Republicans who were in the legislature in 2007 had voted for that minimum wage hike. Like Paulsen, Upmeyer was a yes vote. At the time, he was House minority whip and she was one of four assistant minority leaders.

Iowa’s last minimum wage hike was the first bill Governor Chet Culver signed into law. House File 1 sailed through, passing by 79 votes to 19 in the Iowa House and 40 votes to 8 in the Iowa Senate. All of the Democrats supported the bill. After the jump I’ve listed how all of the current Republican lawmakers voted on the minimum wage increase. Twelve supported the bill, thirteen opposed it, and one was absent for the 2007 vote.

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Highlights from the first day of the Iowa legislature's 2014 session

The Iowa House and Senate convened today to begin the 2014 legislative session. All of the opening remarks reflected on key achievements of the 2013 session, such as compromise bills on commercial property tax cuts, education reform, and providing health care to low-income Iowans. All of the speeches called for more bipartisan work this year, and all stressed “pocketbook” issues such as improving education and building the middle class rather than social issues. But Republican and Democratic leaders take different priorities into the 2014 session.

I’ve summarized below the key points Iowa House and Senate majority and minority leaders raised today. I also enclosed lengthy excerpts and in some cases the full texts of their opening day speeches.

Click here for a tentative schedule of key dates during the 2014 legislative session. Lawmakers tend to finish their work earlier in election years than in odd-numbered years, but I highly doubt they will be ready to adjourn by March 30, as House Speaker Paulsen hopes. They will be lucky to finish work on the state budget by April 22, when lawmakers stop receiving per diem payments.

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Harkin yes, Grassley no as Senate confirms Yellen to chair the Fed

Today the U.S. Senate confirmed Janet Yellen to be the first woman to chair the Federal Reserve. All of the Democrats present, including Iowa’s Tom Harkin, voted for the cloture motion on Yellen’s nomination in December. All of the Democrats present on January 6 voted to confirm her, joined by eleven Republicans. Incidentally, only 59 senators voted for cloture, which would have sunk Yellen under old Senate rules. Senate Democrats removed the 60-vote requirement for motions on presidential nominations in November.

Although a sizable group of Republicans voted to confirm Yellen, most of the Senate GOP caucus opposed her nomination, including Iowa’s Chuck Grassley. In a floor statement I’ve posted after the jump, Grassley said he could not support her nomination because he is concerned the Federal Reserve’s “easy money” policies are “misguided” and will lead to high inflation. Yellen is widely considered an “inflation dove” who is willing to balance the Fed’s longstanding concern for keeping inflation down with a focus on reducing unemployment.

UPDATE: Corrected to clarify that the cloture vote on Yellen happened before the holiday recess. Grassley was among the 26 Republicans who voted no on Yellen’s confirmation. Harkin was absent for the final vote on Yellen on January 6, as were many other senators because of the extreme winter weather.

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IA-Gov: New Register poll shows Branstad in great shape

The latest poll by Selzer & Co for the Des Moines Register finds Governor Terry Branstad in a commanding position going into his undeclared but very likely sixth campaign for Iowa governor.

Among 650 Iowa adults surveyed between December 8 and 11, 58 percent of respondents approved of Branstad’s job performance, while just 33 percent disapproved. The governor’s favorable/unfavorable ratings were 58 percent/34 percent. Furthermore, 55 percent of respondents feel Iowa is generally moving in the right direction, while just 33 percent think the state is on the wrong track. The margin of error for this poll is plus or minus 3.8 percent, and although “Iowa adults” may not be perfectly representative of the 2014 voter universe, any incumbent governor with these numbers would be heavily favored to win another term.

The Democrats who have announced plans to run against Branstad are mostly unknown to Iowans. According to the Register’s poll, 73 percent of respondents didn’t know enough to express a favorable or unfavorable opinion about State Senator Jack Hatch, 79 percent were not sure about State Representative Tyler Olson, 76 percent were not sure about former State Representative Bob Krause, and 87 percent were not sure about first-time candidate Paul Dahl, who announced his campaign in October. In a ballot test, Branstad led Hatch by 52 percent to 29 percent and led Olson by 51 percent to 28 percent. Hatch announced yesterday that he is putting $200,000 of his own money into his gubernatorial campaign. It will take a lot more money than that to raise his name recognition significantly statewide. Even then, something dramatic probably would need to happen to dent Branstad’s approval enough to make him vulnerable. The governor may not be responsible for a decrease in Iowa unemployment that has closely tracked the national jobless rate, but assuming the economy continues to improve slowly, many voters may give the incumbent credit.

Any comments about the governor’s race are welcome in this thread.  

Weekend open thread: Storylines

What’s on your mind this weekend, Bleeding Heartland readers? I saw Peter Jackson’s new Hobbit film, and it’s a good movie if you don’t mind the director taking major liberties with the plot of the novel. If you’re a dedicated fan of Tolkien’s story, you will probably agree with Christopher Orr, who called it “bad fan fiction.” What I appreciate about Jackson is that unlike George Lucas (massively overrated as a director in my opinion), he didn’t try to make his film too much of a kids’ movie. There were plenty of children in the theater audience, but The Hobbit doesn’t include as many stupid characters or cheap laughs as the Star Wars movies.

Today’s edition of the Sunday Des Moines Register contains some findings from the latest Iowa Poll by Selzer & Co. The margins of error are large due to small sample sizes of Iowa Democrats and Republicans, but the headline news is that Hillary Clinton’s favorable/unfavorable numbers are 50 percent/45 percent with all Iowa respondents and 89 percent/7 percent with Democrats surveyed by Selzer between December 8 and 11. In other words, this poll does not support the narrative I’ve argued against repeatedly, which holds that Clinton “needs” to do more retail campaigning here to compensate for her allegedly poor Iowa caucuses showing and failure to connect with Iowans. In my view, Clinton didn’t do as badly here in 2008 as some people believe, nor is she as unpopular among rank and file Iowa Democrats as some bloggers imagine. She will not have any substantial Democratic competition here or anywhere else if she runs for president again.

Speaking of unfounded beliefs, backers of proposed casinos in Cedar Rapids and Jefferson (Greene County) talk a good game about the economic development their projects will bring. Economists Ernie Goss of Creighton University and Dave Swenson of Iowa State University threw cold water on those claims during this weekend’s edition of Iowa Public Television’s “Iowa Press” program. Excerpts are after the jump, including Goss’ memorable comparison of some casinos to a “neutron bomb” that “destroys” surrounding local businesses such as restaurants.

This is an open thread: all topics welcome.  

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Help restore Iowa's rivers...submit comments to Iowa Legislators by Dec 10

(Thanks for the heads up on an important issue that's below the radar for most Iowans. Improving our rivers would be a huge plus for the economy as well as for the environment. - promoted by desmoinesdem)

Iowans have the ear of our Iowa legislators — voice your support to help establish a statewide River Restoration Program. Submit your comments by Tuesday, Dec 10th. 

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Iowa split as House votes to undo another Dodd-Frank provision

For the third time since October, Iowa’s representatives have split along party lines as the U.S. House approved a bill that would undermine the 2010 Dodd-Frank financial reform law. Pete Kasperowicz reported for The Hill that the “Small Business Capital Access and Job Preservation Act” would remove a requirement for private equity firms to register with the Securities and Exchange Commission. It passed the House yesterday by 254 votes to 159, as 36 Democrats joined almost the entire Republican caucus. Iowa Republicans Tom Latham (IA-03) and Steve King (IA-04) voted for the bill, while Bruce Braley (IA-01) and Dave Loebsack (IA-02) voted no, along with most of the House Democrats. Braley and Loebsack also opposed the two other recent Republican efforts to undermine Dodd-Frank.

I have not seen any public comment on this vote from the Iowans in Congress. The Obama administration opposes the bill.

The legislation effectively provides a blanket registration and reporting exemption for private equity funds, undermining advances in investor protection and regulatory oversight implemented by the Securities and Exchange Commission (SEC) under Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Wall Street Reform).

The Administration is committed to building a safer, more stable financial system. H.R. 1105 represents a step backwards from the progress made to date, given that private equity fund advisers have been filing reports with the SEC for over a year. The bill’s passage would deny investors access to important information intended to increase transparency and accountability and to minimize conflicts of interest. Moreover, H.R. 1105 would exempt private equity funds from the disclosure requirements that the Congress laid out in Wall Street Reform to allow regulators to assess potential systemic risks.

According to Kasperowicz, the Senate is unlikely to take up this bill because of the White House veto threat.

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IA-Sen: Strengths and weaknesses of Mark Jacobs

Catching up on news from last week, former energy company chief financial officer Mark Jacobs is now an official candidate for the U.S. Senate. His campaign is on the web here, on Facebook here, and on Twitter here. Scroll to the end of this post to read his announcement speech in full, or listen to it at Radio Iowa. The key excerpt: “Jobs are my top priority. In fact, you can’t spell Jacobs without jobs. And if you send me to the United States Senate, I will make jobs for Iowa my number one priority.”  

Here’s my first take on Jacobs’ strengths and weaknesses in the crowded Republican field. Any comments about the Senate race are welcome in this thread.  

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Scott Brown and Rick Santorum: same goal, different paths

Scott Brown and Rick Santorum have a lot in common besides both visiting Iowa this week. Both are former U.S. senators who lost re-election bids. Both are considering running for president in 2016. Both claim humble roots and have called on the Republican Party to do more to appeal to working-class voters.

The two men have very different views on how GOP candidates can accomplish that goal.

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Iowans split as House votes to reduce limits on derivatives trading

Catching up on news from last week, the U.S. House voted 292 to 122 to undermine part of the Dodd-Frank financial reform law. Cheyenne Hopkins reported for Bloomberg that H.R. 922

would upend the 2010 law’s pushout provision by allowing trades of almost all types of derivatives by lenders with access to deposit insurance and discount borrowing. […]

Lawmakers included the original measure as a way to limit risk-taking by banks that got federal bailouts during the 2008 credit crisis. The pushout provision was faulted by banks and also by regulators including Federal Reserve Chairman Ben S. Bernanke, who expressed concern that it could drive swaps trading to less-regulated entities.

All but three Republicans present voted for this bill, joined by 70 Democrats. Iowa’s Tom Latham (IA-03) was a yes, while Steve King (IA-04) did not vote. Meanwhile, Bruce Braley (IA-01) and Dave Loebsack (IA-02) voted against the bill, as did most of the Democratic caucus. I did not see any public comment on this bill from any of Iowa’s four representatives. During the floor debate on October 30, Democrat Collin Peterson of Minnesota warned,

“This bill would effectively gut important financial reforms and put taxpayers potentially on the hook for big banks’ risky behavior,” Peterson said. “The provision is a modest measure designed to prevent the federal government for bailing out or subsidizing bank activity that is not related to the business of banking.”

Peterson also noted that under current law, banks can still perform about 90 percent of the swaps hedges they were able to perform before Dodd-Frank.

Sounds like Braley and Loebsack made the right call. A White House statement argued against the bill as “premature” and possibly “disruptive,” but did not threaten a presidential veto.

LATE UPDATE: Iowa’s representatives also split on party lines when the House approved the so-called Retail Investor Protection Act on October 29.

The bill prevents the Department of Labor from issuing rules under the Dodd-Frank financial reform act that describes when financial advisors are considered a fiduciary, which means they must must work in their clients’ best interest. Under the bill, Labor would have to wait until the Securities and Exchange Committee (SEC) acts first in this area.

Alicia Munnell explained here why that Republican-backed bill was “fundamentally misconceived.”

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New passenger rail off the table for Iowa?

Hopes to bring passenger rail service from Chicago to Iowa City and eventually to Des Moines and Council Bluffs appear to be dead. For the last three years, State Senator Matt McCoy tried to secure state matching funds for a federal passenger rail grant, citing many possible economic benefits to Iowa. Both Governor Terry Branstad and Iowa House Republicans have opposed allocating funds toward new passenger rail. Speaking to the Sunday Des Moines Register’s William Petroski, McCoy blamed Iowa House Republicans, not the governor, for killing the project. House Speaker Kraig Paulsen told the Register that his caucus did not see the project as a “wise investment.”

I’ve posted excerpts from yesterday’s story after the jump. Neither McCoy nor Paulsen mentioned that the Iowa House speaker works for a trucking company. The trucking industry generally opposes improvements to rail infrastructure. Paulsen’s closed mind on passenger rail is one reason I was disappointed when he decided against running for Congress.

UPDATE: Added new comments from Branstad after the jump.

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Obama nominates Janet Yellen to chair the Federal Reserve (updated)

President Barack Obama finally settled on Janet Yellen to succeed Ben Bernanke as the next chair of the Federal Reserve. No woman has previously held that position, nor has any previous nominee for the job been as qualified as Yellen. Binyamin Appelbaum’s profile of Yellen for the New York Times is excellent. Some other good links about her views are here. She is commonly described as an “inflation dove,” meaning that in her opinion, reducing unemployment should be a higher priority than keeping inflation low (the traditional obsession of Fed chairs). A few years ago, Bleeding Heartland user PrairieBreezeCheeze discussed why it’s time for a Fed chair willing to prioritize employment. Even now, long-term unemployment is still near historically high levels.

Nobody’s perfect, and Zach Carter offers a more negative take on Yellen, focusing on her support for NAFTA, a chained Consumer Price Index, and repealing the Glass-Steagall Act during the 1990s. Nevertheless, Yellen is a much better person to run the Fed than Obama’s first choice for the job, Larry Summers. Credit goes to the coalition that came out early against Summers, convincing five Democrats on the Senate Banking Committee to oppose him.

Despite today’s news, President Obama’s record on appointing women to cabinet-level positions remains worse than Bill Clinton’s–and not for lack of qualified women to choose from.

UPDATE: After the jump I’ve added some remarks from President Obama and Yellen at today’s press conference. SECOND UPDATE: Added Senator Tom Harkin’s official comment.

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Report on women's status is mixed bag for Iowa

Iowa’s “C+” average in a new report on The State of Women in America masks a large disparity in Iowa’s ranking across the three dozen factors measured. Anna Chu and Charles Posner of the Center for American Progress compiled the report released this week. The fact sheet on Iowa is here, and these interactive tables show how Iowa compares to other states overall and on each metric. I’ve listed the metrics considered in each area after the jump. This page explains in more detail the methodology and data used to measure the states.

The C+ grade for Iowa reflects a ranking of 21st out of 50 states when all factors are considered. Iowa did best in the “health” area, with an A- grade and a ranking of seventh. The percentage of our state’s population lacking health insurance is relatively low. Several reproductive rights issues were examined, which means that our state’s grade and rank might be far lower if the Iowa Senate had not been under Democratic control these past few years (blocking efforts to restrict access to legal abortion).

In the “economic security” area, Iowa was ranked 32nd and received a D+ grade. Those low marks reflect the gender gap in wages, especially for Iowa women of color, and the lack of any state policy on “paid family, medical, or temporary disability leave.”

Iowa’s worst marks were in the “leadership” area, where our state got an F and ranked 42nd among the states. Who can be surprised, given our dismal record of electing women to high office? The Carrie Chapman Catt Center for Women and Politics at Iowa State University has an extensive database of reports on women’s representation in Iowa government at the local, state, and federal level. The Center for American Progress also noted the fact that “Women hold only 33.3 percent of the managerial jobs in Iowa, despite making up 51 percent of the state’s population.”

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Ten reasons Latham and King are wrong about food assistance funding

The U.S. House voted mostly along party lines on September 19 to cut the leading federal food assistance program by $39 billion over the next decade. Iowa’s four representatives split in the expected way: Republicans Tom Latham (IA-03) and Steve King (IA-04) supported the “Nutrition Reform and Work Opportunity Act,” while Democrats Bruce Braley (IA-01) and Dave Loebsack (IA-02) voted no. In fact, the roll call shows that not even the bluest Blue Dog Democrat supported this bill.

After the jump I’ve posted comments on this vote from some of the Iowans in Congress, along with the latest Iowa and national figures on food insecurity and the Supplemental Nutrition Assistance Program (SNAP), formerly known as “food stamps.”

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IA-Gov: Hatch rolls out campaign, Olson rolls out endorsements (updated)

State Senator Jack Hatch made his candidacy for governor official in Des Moines this morning, en route to campaign stops in five other Iowa cities. A few days ago, State Representative Tyler Olson sought to build momentum by revealing a long list of state lawmakers who support his gubernatorial campaign.

After the jump I’ve posted Hatch’s announcement, the full list of Iowa House and Senate Democrats backing Olson, and a few thoughts on the big question each candidate will have to answer before next June’s primary.

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Larry Summers out of the running for Federal Reserve chair

Federal Reserve Chair Ben Bernanke’s term ends early next year, and President Barack Obama’s rumored top choice to replace him has been economic adviser Larry Summers. Why Obama would want to elevate someone who’s failed at several important jobs is beyond me, particularly when a much more qualified candidate is available in Janet Yellen. She has more experience in the Fed, as well as more support in the U.S. Senate and from economists. Yellen also lacks the huge conflict of interest problems that would have dogged Summers because of his involvement with Citigroup.

Yesterday Summers saved Obama from making a big mistake by formally withdrawing from consideration for the top job at the Fed. I disagree with Jonathan Chait’s claim that Summers “paid” for Obama’s poor record on appointing women to high positions in his administrations. There were plenty of reasons to favor Yellen over Summers for this job. The fact that she would be the first woman to chair the Fed is just a bonus. Kudos to the three Democrats on the U.S. Senate Banking Committee who came out early against Summers, helping to avert what would have been a very bad choice by the president. UPDATE: Apparently five Senate Democrats were ready to vote against Summers in committee: Jeff Merkley of Oregon, Elizabeth Warren of Massachusetts, Sherrod Brown of Ohio, Jon Tester of Montana, and Heidi Heitkamp of North Dakota.

Weekend open thread: Computation errors

What’s on your mind this weekend, Bleeding Heartland readers? I’ve been thinking about math, or rather, the inability to do math. This fascinating article by Robert Charette exposes the “myth” of an alleged shortage of STEM (science, technology, engineering, and mathematics) workers. The real problem in the U.S., Charette argues, is “a STEM knowledge shortage.”

To fill that shortage, you don’t necessarily need a college or university degree in a STEM discipline, but you do need to learn those subjects, and learn them well, from childhood until you head off to college or get a job. Improving everyone’s STEM skills would clearly be good for the workforce and for people’s employment prospects, for public policy debates, and for everyday tasks like balancing checkbooks and calculating risks.

Speaking of public policy debates, Congressional Republicans are poised for another showdown over the debt ceiling, armed with phony concern about a “growing” federal deficit. In fact, the deficit is falling at the fastest rate in decades, but very few Americans realize that, and self-appointed fact-checkers bend over backwards not to acknowledge it.

Speaking of the inability to count, Governor Terry Branstad’s administration has touted misleading “job creation” numbers for a long time, but the latest propaganda is “inflated” even if you accept the governor’s “bizarre” practice of counting only jobs created while not subtracting jobs lost.

Politicians aren’t the only ones who let ideology interfere with basic numeracy. This must-read piece by Chris Mooney summarizes findings from a new study: “people who are otherwise very good at math may totally flunk a problem that they would otherwise probably be able to solve, simply because giving the right answer goes against their political beliefs.”  Regardless of party affiliation, research subjects with higher math skills were better at solving a problem about the effectiveness of skin cream. When the same numbers were presented as evidence related to handgun bans, liberal Democrats and conservative Republicanss were more likely to arrive at the wrong answer if the correct answer went against their opinions about gun control and crime.

This is an open thread.

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Labor Day Message By Rep. Tyler Olson

(Bleeding Heartland welcomes guest diaries by Democratic candidates for public office. Promotion does not equal endorsement. - promoted by desmoinesdem)

One of the best things about running for office is meeting the people who make Iowa great. On main streets in every corner of the state there are hardworking men and women who prove Iowans’ work ethic is second to none. 
It’s clear all Iowans feel a sense of responsibility to contribute to their communities, to support their families and leave behind a future with more promise and more opportunity than past generations. 
It’s this same responsibility and determination we celebrate on Labor Day as we honor the workingmen and women who are the heart of our communities and recognize the decades of progress the labor movement has made. So many rush to make organized labor a partisan issue that they take for granted its historic accomplishments like Social Security, the Civil Rights Act, the 40 hour work week, paid sick leave, Medicare and the minimum wage.
 
Today is about celebrating these victories and the hardworking Iowans carrying on this tradition. 
Of course, Labor Day isn’t only about looking to the past. It’s about looking toward the future and choosing a path forward that strengthens Iowa for decades to come.  
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Labor Day weekend open thread

Happy Labor Day! The U.S. Department of Labor provides a short history of the holiday here. A couple of years ago, Bleeding Heartland readers discussed favorite labor-themed music, inspired by Peter Rothberg’s top ten Labor Day song list. Here are three dozen reasons Americans should be grateful to the organized labor movement. After the jump I’ve posted excerpts from President Abraham Lincoln’s December 1861 State of the Union address.

Labor Day is the unofficial end of summer for many people. The heat wave smothering Iowa for the last week finally broke, so I hope everyone is able to enjoy some time outside today.

This is an open thread. The big news of the weekend is that President Barack Obama will seek Congressional authorization for military intervention in Syria. A post is in progress about Iowa political views on how and whether the U.S. should get involved militarily there.

The national unemployment rate is down somewhat this year, but our economy would be a lot healthier if we hadn’t sacrificed so much job-creating potential on the altar of federal budget austerity. We should have been taking advantage of low interest rates to invest in high-speed rail, clean water infrastructure and other long-lasting public works. But those efforts have been a dead letter since Republicans took back the U.S. House. The sequester set in motion by the 2011 clash over raising the debt ceiling is not only affecting federal employees directly, but also many people who rely on federal programs. Even some of the fact-checkers have bought into the “growing deficit” propaganda, despite the fact that the deficit is falling faster than it has in decades.

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Report shows persistent racial disparities in U.S.

August 28 will mark 50 years since the Rev. Dr. Martin Luther King Jr’s March on Washington, where he delivered his most famous speech. To mark the occasion, the Pew Center released a report on racial disparities (real and perceived) in the U.S.

The analysis finds that the economic gulf between blacks and whites that was present half a century ago largely remains. When it comes to household income and household wealth, the gaps between blacks and whites have widened. On measures such as high school completion and life expectancy, they have narrowed. On other measures, including poverty and homeownership rates, the gaps are roughly the same as they were 40 years ago.

I strongly recommend clicking through to read the full report. What a treasure trove. Chapter 1 covers perceptions of progress toward racial equality. Chapter 2 covers opinions about “short-term progress for black Americans.” Chapter 3 “looks at a variety of economic, educational, health, political and social indicators to assess change in the relative well-being of black and white Americans in recent decades.” I wasn’t surprised to learn that white respondents are much more likely than African-Americans to say that “the situation of black people in this country is better now than it was five years ago.” It’s striking that only a minority of white respondents perceive that “blacks in their community are treated less fairly than whites by the criminal justice system, in the workplace and when voting in elections.”

This slideshow highlights the key findings from the Pew Center’s report, and this interactive feature tracks up to 50 years of data on “racial and ethnic gaps among whites, blacks, Asians and Hispanics.”  

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Weekend open thread: American history edition

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread. Last night I watched a fascinating CNN program about John Hinckley’s attempt to assassinate President Ronald Reagan. I had no idea that Hinckley had been stalking Jimmy Carter during the fall of 1980. Twice he got within a few feet of the president at campaign events.

I also taped the CNN “Our Nixon” documentary first aired earlier this month, based on home movies shot by Nixon’s aides. Looking forward to watching that soon.

Rob Christensen published an interesting essay about conservatism in the south: “Few states took the idea of minimalist government as far as North Carolina. All of the 1800s was a case study of the proposition that North Carolina works best with bare-bones government.”

Speaking of small-government conservatives, here’s an oldie but goodie by Reagan administration economist Bruce Bartlett on Reagan’s forgotten record of raising taxes as California governor and president.

Moving to more recent history, I strongly disagree with what Patty Judge told the New York Times about Hillary Clinton needing a strong ground game if she comes back to Iowa. If Clinton runs for president, she will win the Iowa caucuses and the Democratic nomination without any question, whether or not she spends time on retail politics here. There won’t be a repeat of 2007-2008, because she will have only token opposition during the primaries.

State education board rejects rule change on K-12 start dates

Last week brought a good reminder that state boards and commissions don’t always rubber stamp the governor’s desired policies. Although Governor Terry Branstad has made clear that he wants to push back the start of the K-12 school year in Iowa, the State Board of Education on August 1 voted five to two against a Department of Education proposed rule change. Background and further details are after the jump.

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Weekend open thread: High-tech, low return edition

What’s on your mind this weekend, Bleeding Heartland readers? I’ve been thinking about some high-tech failures. For instance, genetically-modified seeds were supposed to solve farmers’ weed problems. Yet weeds resistant to glyphosate (the main ingredient in Monsanto’s Roundup herbicide) are “gaining ground” across Iowa. The problem is worse on farms where Monsanto’s Roundup Ready seeds have been planted the longest.

Rootworms “resistant to one type of genetically engineered corn” are also a growing problem. Genetically-modified seed was supposed to make corn plants poisonous to rootworm, but now farmers are “deploying more chemical pesticides than before.” The outcome was predictable.

On a related note, research shows that nitrogen enrichment through added fertilizers can hurt plant diversity and productivity of grasslands in the long term.

Some Midwestern cities and towns “are absorbing a financial beating after betting big on an innovative coal-fired power plant” during the last decade. “Clean coal” was always a boondoggle.

Speaking of costly investments, the state of Iowa continues to shovel tax credits to Orascom for a fertilizer plant project that would have been built in Iowa anyway. But hey, what’s another $25 million?

This is an open thread: all topics welcome.

Q-poll: Iowans approve of Branstad but feel he's been governor "long enough"

Governor Terry Branstad got good news and bad news from the latest Quinnipiac statewide poll, released today. The survey of 1,256 registered Iowa voters between July 15 and 17 found that Branstad is in positive territory with Iowans: 51 percent approve of his work as governor, while just 33 percent disapprove. Moreover, 50 percent of respondents have a favorable opinion of Branstad, while 37 percent view him unfavorably. Another good sign for the incumbent: 67 percent were either very or somewhat satisfied with “the way things are going in Iowa today”; just 31 percent said they were very or somewhat dissatisfied.

On the downside, just 43 percent of respondents said Branstad deserves to be re-elected; 46 percent said he does not. About 54 percent said the governor “has been in office long enough,” while 37 percent said he should seek another term.

No one’s going to panic at Terrace Hill over this poll. Thinking abstractly that Branstad should retire is different from choosing to vote for someone else. Clearly many people in that “long enough” group like Branstad and think he’s doing a decent job. I doubt those people would vote for a challenger unless they felt that Branstad was physically unable to serve for another four years.

The potential Democratic candidates for governor are mostly unknown to Iowa voters. About 77 percent of Quinnipiac’s respondents haven’t heard enough about Senate Majority Leader Mike Gronstal to form an opinion, 85 percent said the same about State Senator Jack Hatch, and 92 percent said the same about State Representative Tyler Olson.

Full results from the Quinnipiac poll including questionnaire and cross-tabs can be viewed here (pdf). Olson’s campaign was quick to send out an e-mail blast touting the poll as proof that Iowans agree it’s “time for a new start in the Governor’s office.” I posted that message after the jump. I haven’t seen any comment from the Branstad campaign about the new poll, but I also enclosed below a statement released today touting the governor’s job creation efforts.

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Weekend open thread: Bad assumptions edition

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread.

I’ve been thinking about how bad assumptions produce flawed theories and poor decisions. Steve Denning wrote an excellent piece for Forbes about Milton Friedman and the origin of “the world’s dumbest idea”: “that the sole purpose of a firm is to make money for its shareholders.”

Sean Trende, senior elections analyst for the conservative website RealClearPolitics, recently spun some rosy scenarios for Republicans worried about their party’s over-reliance on white voters. GOP candidates would be extremely foolish to count on his “racial polarization” scenario panning out. His “full Rubio” and “modest Republican outreach toward Hispanics” scenarios seem too optimistic to me as well.

High nitrate levels in Iowa waterways continue to make news, as they have for the last two months. I enjoyed this Des Moines Register editorial from Saturday’s paper. Excerpt:

During a meeting with The Des Moines Register’s editorial board earlier this year, House Speaker Kraig Paulsen made the claim that Iowa’s rivers are actually cleaner today than they were in the past. The evidence to the contrary is overwhelming. But Paulsen’s comment speaks to a troubling mentality that permeates the Iowa Legislature: If you just tell Iowans the water is OK often enough, maybe they will believe you and will think the lake they are swimming in doesn’t really smell like a toilet.

I don’t take my kids swimming in any Iowa lakes, and I won’t feel a bit sorry for Paulsen if he runs for Congress and loses the Republican primary, as I expect.

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Thanks and best wishes to David Osterberg

David Osterberg stepped down yesterday as executive director of the Iowa Policy Project, Iowa’s leading think tank. A legendary figure in this state’s environmental community, Osterberg served six terms in the Iowa House, chairing the Agriculture Committee for four years and the Energy and Environmental Protection Committee for two years. He has received honors and awards from many non-profit organizations and was the Democratic nominee for U.S. Senate against Chuck Grassley in 1998.

In 2001, Osterberg created the Iowa Policy Project “to bring a fact-based focus to public policy issues affecting Iowa families.” The organization’s research reports and Iowa Policy Points blog are must-reads for anyone interested in state policy. In conjunction with the Des Moines-based Child and Family Policy Center, the Iowa Policy Project also publishes valuable research on the Iowa Fiscal Partnership website. The latest Iowa Fiscal Partnership report shows how food assistance programs in the Farm Bill affect thousands of Iowans.

I was pleased to read in the statement enclosed below that Osterberg will keep working with the Iowa Policy Project on energy and environment research, and longtime assistant director Mike Owen will take over as executive director.  

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Weekend open thread: Changed minds edition

What’s on your mind this weekend, Bleeding Heartland readers?

As Ryan Koopmans first reported at On Brief: Iowa’s Appellate Blog, at least one Iowa Supreme Court justice seems to have changed his mind about the unanimous ruling issued last December in a gender discrimination case. The decision drew national media attention after justices determined that the plaintiff, Melissa Nelson, was not discriminated against for being a woman, but fired as “an isolated employment decision based on personal relations.” Koopmans wrote this week, “Chief Justice Cady issued an order withdrawing the December opinion and stating that the court would resubmit the case, without oral argument, this Wednesday, June 26.  There’s no indication of when the court will issue its new decision […].”

Nelson’s attorney filed a petition to rehear the case soon after the ruling was announced. The Iowa Supreme Court has granted only five requests for re-hearings in the past decade, Jeff Eckhoff reported for the Des Moines Register. Koopmans commented, “I expect that there will be at least one opinion coming out in favor of Melissa Nelson. The question is whether that opinion is the majority or the dissent.”

For those sympathetic to Paula Deen, who says she’s not a racist and no longer uses “the N-word,” I recommend reading what’s been alleged in the lawsuit filed against her. Her disturbing behavior goes way beyond using offensive language from time to time. She deserves to lose her Food Network show and her various endorsement contracts. I’ve disliked Deen ever since she started profiting from a diabetes drug after promoting an unhealthy diet for years. DeWayne Wickham said it well in this column, which I’ve excerpted after the jump.

This is an open thread: all topics welcome. Congratulations to the Cedar Rapids Gazette’s Todd Dorman on 20 years working in journalism.

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Warning signs on GMO feed and animal health

A new study in a peer-reviewed journal indicates that pigs fed a diet containing genetically-modified corn and soy had more severe stomach inflammation and (in females) heavier uteri than pigs fed an equivalent diet in conventionally raised corn and soy that was not genetically-modified. You can read the full article describing research on an Iowa farm here (pdf). For a summary of key findings, click here or here. The pigs “were reared under identical housing and feeding conditions.”

These results are disturbing, considering that more than 90 percent of the corn and soybeans grown in Iowa are now “Roundup Ready” biotech varieties, sprayed with glyphosate, the key ingredient in Roundup herbicide. Many anecdotal reports have linked animal health problems to genetically-modified feed. At the 1000 Friends of Iowa annual meeting on June 8, large-animal veterinarian Arthur Dunham described nutritional deficiencies, fertility problems, and unexplained deaths that he has seen increasingly in the cattle and swine herds of his clients. Dunham has been in practice for nearly 40 years and presented data about lower levels of certain vitamins and minerals (including B-12, calcium, magnesium, phosphorus, potassium, manganese, and iron) in feed made from genetically-modified crops.

Monsanto and its allies dismiss such data as anecdotes and cite their own corporate-funded studies, which allegedly show the safety of GM crops. The new scholarly article describes the limitations of earlier research and calls for further studies on the subject. (Very few studies have been conducted over a time period longer than 90 days, for instance.) One Danish hog farmer saw big improvements after switching from genetically-modified feed, but Roundup crops are so dominant in this country that it can be hard for farmers to source animal feed that hasn’t been sprayed with glyphosate.

Iowa flood links and discussion thread

This year’s cool, wet spring was a blessing at first, reducing drought conditions substantially across Iowa. But now that the state has chalked up the wettest spring in 141 years of record-keeping, many communities are dealing with major flooding again. Flooding forced the closure of Highway 14 north of Marshalltown and prompted emergency sandbagging in downtown Iowa City and Cedar Rapids. You can see high water threatening downtown Cedar Rapids on Friday, and today the basement of the rebuilt city hall flooded. Water was pumped across some lanes of Highway 30. The lack of rain on Friday may have prevented the worst-case scenario in some cities.

At the downtown Des Moines Farmers Market this morning, several vendors told me they have “more water than they need” but not a devastating amount of moisture–yet. Farmers in many parts of the state haven’t been so lucky. Either rains have prevented them from planting, or floodwaters are washing away recently-planted crops.

Governor Terry Branstad was on vacation for most of the past week but has issued disaster emergency proclamations for 47 Iowa counties. He and Lieutenant Governor Kim Reynolds plan to tour flood-affected areas in eastern Iowa on Monday.

Any news or comments about the Iowa flooding are welcome in this thread.

JUNE 3 UPDATE: Dry weather over the weekend helped mitigate the flooding in Cedar Rapids and Iowa City, but Coralville Lake is not expected to crest until June 7.

Speaking to reporters in Des Moines on June 3,

Branstad resisted the notion that this year’s floods or last year’s drought conditions could be linked to climate change or that the state could do anything to prevent such events from happening.

“Weather is always going to change,” said Branstad, who’s serving his fifth term as Iowa’s governor. “I’ve been governor during droughts and floods and we just went from a drought to a flood.

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Iowa Medicaid expansion news roundup (updated)

Last week Governor Terry Branstad finally introduced legislation to enact his Healthy Iowa Plan instead of the Medicaid expansion foreseen under the 2010 federal health insurance reform law. Strangely, neither the governor’s office nor the Iowa House Republican caucus held a news conference or even posted a press release about House Study Bill 232. The bill arrived at the statehouse on Thursday, April 4, after many legislators had left for the weekend.

So far House and Senate Republicans appear united behind Branstad’s approach, while the governor’s office strives to counter the obvious case against his plan (costs more, covers less). I’ve posted arguments for both sides and other news links after the jump.

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