Category Archives: Insurance

Takeaways From the GOP’s Big Win

gillespie warnerBy Peter Galuszka

The night of Tuesday, Nov. 4 was an ugly one for the Democrats and a big win for Republicans. Here are my takeaways from it:

  • U.S. Sen.Mark Warner clings to a tiny lead that seems to grow slightly, still making it uncertain if opponent Ed Gillespie will ask for a recount. The surprisingly tight race is an embarrassment for Warner. It likely takes him out of consideration to be Hillary Clinton’s running mate in 2016 although Democrats Tim Kaine and Jim Webb are still possibilities.
  • Ed Gillespie ran a smart campaign and came off as a solid candidate. Of course, we are comparing him against Kenneth Cuccinelli and that’s a very low bar but Gillespie’s projection of being relaxed and confident helped him. Gillespie did very well despite being dissed by the national Republican money machine. Look for him in the gubernatorial race of 2017.
  • Barack Obama takes his lumps — again. The country’s on the mend and things are going fairly well (despite what you may watch on Fox), but Obama is incapable of cashing in on that. His cool, detached style is a big minus and makes him seem careless and incompetent, especially when crisis like ebola come up that are not of his making.
  • The Republican wins on Capitol Hill are more significant than the Tea Party inspired once during the 2010 midterms.But the earlier races brought in a kind of mindless negativity and gridlock by both parties that truly hurt the country. Will that happen again? Or will older, wise heads prevail?
  • Increase in coverage my Obamacare The New York Times

    Increase in coverage by Obamacare
    The New York Times

    You might get some bipartisan action on taxes and the budget, but deadlock remains for Affordable Care and immigration. The fact is that Obamacare is too far along to change much and people actually like it, despite what you hear in the right-wing echo chamber. This chart from the New York Times shows that the ACA has boosted health coverage in some of the poorest parts of the country, such as the Appalachian coal country, the African-American belts of the Deep South; and poor parts of the Southwest like New Mexico and parts of Arizona. This alone is a big success.

  • Immigration. Look for Obama to use executive authority to come up with an immigration plan. It is an emotional, hot button issue that reveals lots of ugly attitudes. But something needs to be done fast. The GOP has no plan, except for George W. Bush who actually pushed a workable solution that was compassionate. That got soaked by the Tea Party, but then Republican Mitt Romney came up with a health care plan for Massachusetts that looks remarkable like Obamacare and was a precursor. If the GOP can get back to those helpful ideals, there may be hope.
  • Warner lots big swaths of voters who had been with him, like Loudoun County and parts of rural Virginia. This is alarming for the Dems and shows they need to project their messages a lot better. Warner’s poor performance in debates didn’t help either.

It is a big win for the GOP, but somehow I don’t feel as bitter as I was in 2010.

Why Private Space Firms Need Oversight

By Peter Galuszka

Virgin galacticDoes bad news come in twos or threes?

First, on Oct. 28, an Orbital Sciences Antares rocket bound to supply the International Space Station exploded seconds into its take off at Wallops Island on the Virginia Eastern Shore.

Three days later, the Virgin Galactic SpaceShipTwo designed for space tourism broke in two during a test flight over the Mojave Desert in California. One pilot was killed and the second was seriously injured when he parachuted to safety.

Both incidents involve private companies pushing ahead to commercialize space which used to be the province of the federal government, NASA and the military. The Orbital incident brought the usual cries that the government should continue its hands off policies about regulating the private space industry. The Virgin Galactic accident changes that equation.

For some background, here’s space.com:

“Thus far, the private space industry has resisted oversight from federal regulators, but that could change in the wake of the accident.

“I suspect there will be pressure for tighter regulations,” (John)  Logsdon (of George Washington University) said.

“In 2012, Congress passed a bill that extended the “learning period” for the commercial spaceflight industry. The measure was championed by Congressman Kevin McCarthy, a Republican from California, whose district covers the Mojave spaceport.

“The provision essentially prohibited the U.S. Federal Aviation Administration’s Office of Commercial Space Transportation, dubbed AST, from issuing regulations designed only for the protection of passengers until October 2015. The idea behind this hands-off approach was to allow the spaceflight industry to gain real-world data from their first licensed commercial launches; the FAA would, in turn, use this information to eventually craft regulations.

“In the wake of the accident, Virgin Galactic and the National Transportation Safety Board — the federal agency leading the investigation — have warned against speculation until the ongoing investigation is complete. But critics have made strong claims about risks the company took.

“Tom Bower, a biographer of Branson, told BBC Radio 4 that the accident was “predictable and inevitable.” Joel Glenn Brenner, a former Washington Post reporter who has been following Virgin Galactic’s progress, made similar charges shortly after the accident in an appearance on CNN, adding: “I don’t see them at least being able to carry anybody into space in the next 10 years.

“Andrea Gini, of the Netherlands-based International Association for the Advancement of Space Safety, criticized Virgin Galactic for a lack of transparency about its safety procedures.

“We don’t know how Scaled Composites approached this particular test,” Gini told Space.com in an email. “Virgin Galactic has always refused to participate to the public discussion inside the space safety community, and has never sought the support of independent reviewers.”

“Gini said there are elements of Virgin Galactic’s flight design that experts consider hazardous. The decision to fly passengers and even crew without pressurized space suits, for example, could expose them to risk of decompression, he said.

“Space is, and will always be, a risky industry,” Gini said. “But it is not a new one. I believe that commercial operators should approach it with transparency and humility, or their business, and not just their vehicles, will be doomed to failure.””

That’s sobering. In the Wallops Island case, investigators are loo9king at where decades-old, modified, Russian-made rocket engines that the Russians deemed too dangerous to use were a cause.

There are questions that need answering.

Health Insurance as Driver of Income Inequality

Road to serfdom

If you want to address increasing income inequality in the United States, a good place to start would be to bring runaway health insurance costs under control. Health care costs — not globalization, automation or corporate greed — are the biggest driver in income inequality today, argue Mark J. Warshawsky and Andrew G. Biggs in the Wall Street Journal today. Warshawsky is a visiting scholar at George Mason University’s Mercatus Center.

Here’s what the usual media analysis doesn’t tell you about the growing income gap. If you compare total compensation — wages/salaries plus benefits — low-income workers actually fared better than high-income workers between 1999 and 2006. Citing Bureau of Labor Statistics data, Warshawsky and Biggs note:

For low-income workers, total pay and benefits rose by 41% from 1999 through 2006. But those workers’ wages increased only by 28%, barely outpacing inflation.  The reason: Employer costs for those workers health costs nearly doubled. …

Total compensation for [those earning $250,000 or more a year] rose by 36% from 1999 through 2006. That’s actually less than for low-income workers. But the one-percenters’ health costs rose from just 4% of compensation in 1999 to only 4.3% in 2006.

The authors do not explain why they cite data only through 2006 when data is available through June 2014. Whatever the reason, it appears that the cost of benefits continues to outpace wages/salaries. According to the BLS, for the quarter ending June 2014, “wages and salaries (which make up about 70 percent of compensation costs) increased 0.6%, and benefits (which make up the remaining 30 percent of compensation) increased 1.0 percent.

In other words, much if not most of the perceived increase in income inequality in recent years is an artifact of the tax code. Employer-paid health insurance is not taxable, thus not reported as income, while wages/salaries are taxable and reported as income. Eliminate the tax break for employer insurance and the growth in the wage gap disappears.

If we are sincere about wanting to reduce income inequality, the first place we should be looking is at inflation in health care costs. Here’s a real irony that Warshawsky and Biggs do not explore: Insofar as Obamacare shifts the cost of health care to employer-sponsored health insurance plans — I have a friend, a small business owner, whose health insurance is scheduled to go up 35% next year — it doesn’t just destroy job creation, it shifts compensation from taxable income to non-taxable health insurance, thus aggravating the reported income gap.

Meanwhile, the low interest rate policy of the Federal Reserve Board rewards the Top 1% by pushing up the price of stocks and bonds and punishes small savers by depressing interest rates. It is no accident that income inequality is worse under Obama than Bush. Perhaps Obama acolytes can cite the Warshawsky-Biggs research as evidence that the administration’s policies haven’t been as unfair to the poor as they seem to be.

– JAB

The Huge Controversy Over Gas Pipelines

atlantic coast pipeline demonstratorsBy Peter Galuszka

Just a few years ago, Gov. Terry McAuliffe seemed to be a reasonable advocate of a healthy mix of energy sources. He boosted renewables and opposed offshore oil and gas drilling. He was suspicious of dangerous, dirty coal.

Then he started to change. During the campaign last year, he suddenly found offshore drilling OK, which got the green community worried. But there’s no doubt about his shifts with his wholehearted approval of the 550-mile Atlantic Coast Pipeline proposed by Duke Energy, Piedmont Natural Gas and AGL Resources, along with Richmond-based Dominion, one of McAuliffe’s biggest campaign donors.

The $5 billion Atlantic Coast Pipeline is part of a new phenomenon – bringing natural gas from the booming Marcellus Shale fields of Pennsylvania, Ohio and northern West Virginia towards busy utility markets in the Upper South states of Virginia, North Carolina and parts ones even farther south. Utilities like gas because it is cheap, easy to use, releases about half the carbon dioxide as coal, which is notorious for labor fatalities, disease, injuries and global warming.

The Atlantic Coast Pipeline would originate at Clarksburg, W.Va. (one of my home towns) and shoot southeast over the Appalachians, reaching heights of 4,000 feet among rare mountain plants in the George Washington National Forest, and then scoot through Nelson, Buckingham Nottoway Counties to North Carolina. At the border, one leg would move east to Portsmouth and the Tidewater port complex perhaps for export (although no one has mentioned that yet). The main line would then jog into Carolina roughly following the path of Interstate 95.

It’s not the only pipeline McAuliffe likes. An even newer proposal is the Mountain Valley Pipeline that would originate in southern West Virginia and move south of Roanoke to Chatham County. It also faces strong local opposition.

atlantic_coast_pipeline mapThe proposals have blindsided many in the environmental community who have shifted some of their efforts from opposing coal and mountaintop removal to going after hydraulic fracking which uses chemicals under high pressure and horizontal drilling to get previously inaccessible gas from shale formations. The Marcellus formation in Pennsylvania, New York, Ohio and West Virginia, the birthplace of the American oil and gas industry, has been a treasure trove of new gas.

The fracked gas boom has been a huge benefit to the U.S. economy. It is making the country energy independent and has jump started older industries in steel, pipe making and the like. By replacing coal, it is making coal’s contribution to the national energy mix drop from about 50 percent to less than 40 percent and is cutting carbon dioxide emissions that help make for climate change.

That at least, is what the industry proponents will tell you and much of it is accurate. But there are big problems with natural gas (I’ll get to the pipelines later). Here’s Bill McKibben, a Middlebury College professor and nationally known environmentalist writing in Mother Jones:

Methane—CH4—is a rarer gas, but it’s even more effective at trapping heat. And methane is another word for natural gas. So: When you frack, some of that gas leaks out into the atmosphere. If enough of it leaks out before you can get it to a power plant and burn it, then it’s no better, in climate terms, than burning coal. If enough of it leaks, America’s substitution of gas for coal is in fact not slowing global warming.

Howarth’s (He is a biogeochemist) question, then, was: How much methane does escape? ‘It’s a hard physical task to keep it from leaking—that was my starting point,’ he says. ‘Gas is inherently slippery stuff. I’ve done a lot of gas chromatography over the years, where we compress hydrogen and other gases to run the equipment, and it’s just plain impossible to suppress all the leaks. And my wife, who was the supervisor of our little town here, figured out that 20 percent of the town’s water was leaking away through various holes. It turns out that’s true of most towns. That’s because fluids are hard to keep under control, and gases are leakier than water by a large margin.

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In the “If Your Like Your Health Care Plan, You Can Keep It” Department…

then-i-saidFrom the Times-Dispatch: “After a year’s reprieve, up to 250,000 Virginians will receive notice by the end of November that their health insurance plans will be canceled because the plans do not comply with the Affordable Care Act and accompanying state law.”

Now those Virginians will have to buy new, Obamacare-compliant plans, which means they will have more benefits they may or may not want… and will cost more.

The Virginia Association of Health Plans, which has become a wholly owned subsidiary of the Obama administration, defended the forced switch. Said Executive Director Doug Gray: “I don’t call that cancellation – I call that an adjustment to the new law.”

I call it a cancellation. I’ll be that the people affected by the law call it a cancellation, too.

– JAB

It’s Oh, So Richmond!

By Peter Galuszka

cantorWhen I looked at my Richmond Times Dispatch, I was stunned. I couldn’t find a story that their wunderkind Congressman, Eric Cantor, the kind of Republican they love, had gotten a big deal job with Moelis & Co., a New York boutique investment bank.

There was the story in the Wall Street Journal and the Washington Post. Finally, the RTD straggled  on with brief piece at 6:22 a.m. on its Website.

Maybe it’s embarrassment. Cantor, the former House Majority Leader, could do no wrong with his Main Street Republican friends or the editors of the local newspaper. His wife, Diana, was on the board when the newspaper was owned by Media General. Then came his stunning defeat in a June primary to unknown David Brat, who ran a mash-up of a Tea Party and Libertarian insurgency.

Moelis says it is hiring Cantor “for his judgment and experience” and ability to open doors, says the Journal. He’ll live in Virginia and have offices in Washington and New York.

Well, that was quick! Or maybe not. Cantor has raised $1.4 million from the financial services sector, as well as lots from managed care. His sense of entitlement is astounding. First, he thought he didn’t have to bother with the home folks in the Seventh District any more, costing him the election. They he arranged (with Gov. Terry McAuliffe’s help) a special election.

Doing so would get his replacement in office faster and thus Virginia can keep its seats on some important committees. But it also frees Cantor to take his plum job.

You didn’t read it in the RTD first! Somethings will never change.

Cantor’s Self-Serving Special Election Scheme

cantor By Peter Galuszka

It looks like a small group of the Virginia Republicans elite has once again hatched a plot behind closed doors to manipulate elected politics without input from voters.

U.S. Rep. Eric Cantor, the victim of a surprising defeat in a June 10 Republican primary, has come up with a self-serving scheme to resign Aug.18 and finagle a special election Nov. 4 to pick his successor. The special election would be held along with a regularly scheduled one.

Normally, opposing candidates Republican David Brat and Democrat Jack Trammel, would routinely face election that day. With Cantor’s proposal, the winner of the special election for the 7th Congressional District seat would be able to take office immediately, instead of having to wait for usual matriculation of the other 434 Congressmen in January.

This is a back-door, move-to-the-head-of-the-class scheme. Presumably, the winner would be Brat who, taking office in November, would be placed ahead of other Congressional newcomers when it comes to coveted committee assignments. Good for the GOP. Bad for Democrats.

For Cantor, of course, it is a Big Win. Since his unexpected and earth-shaking defeat, the 51-year-old has been seen at such posh places as the Hampton is on the tip of Long Island schmoozing with Big Money. Cantor does have an advanced degree from Columbia in real estate finance and his wife was once a New York securities trader. Big Finance, along with Big Pharma and Big Managed Care, has been one of his biggest sources of election funds.

Larry Sabato, the University of Virginia political expert, by turns thought Cantor’s idea “generous” but also noted ”it’s highly probable that he has a deal in the works for his post-Congress life, and he’s eager to get it started,” Sabato was quoted as saying.

As might have been expected, Cantor made his announcement in the Richmond Times-Dispatch, his lapdog newspaper. Editors gushed that his announcement “features an extraordinary column by an extraordinary human being.”

It shows extraordinary cluelessness as well. Cantor, the Main Street Republicans and the TD’s club of Richmond elites don’t seem to understand that it is their very exclusivity that helped do Cantor in and give an upstart like Brat the edge.

Consider a cover story package that I co-wrote in the Chesterfield Monthly, one of the Richmond area’s up-and-coming publications. I found that it wasn’t just that Cantor ignored his district that did him in – it was a putsch by some rather annoyed Libertarians of the traditional ilk and small government moderates plus the Tea Party.

Leaders of the “malcontents” were lawyer Patrick McSweeney and Tea Party leader Jamie Radtke who ran unsuccessfully for U.S. Senate in 2012. In the “Bull Elephant” blog, Radtke compared Cantor and his Confederates as “mobsters” running around and snuffing out dissent among local conservatives.

Brat himself was ultra pissed off a couple of years back when he wanted to get the Henrico County GOP nod to run and replace Bill Janis. But, functioning as the old Soviet Politburo might have, a tiny group of Republican elders decided that the candidate would be Peter Farrell, the young son of utility powerhouse chieftain Tom Farrell of Dominion. In other words, it wasn’t exactly a day for waving the stars and stripes of Democracy. It was pure, Big League, Big Business inside diktat that could have taken place behind the crenelated walls of the Kremlin.

They didn’t give Brat a chance,”analyst Bob Holsworth told me. “That gave Brat the interest in taking on this Don Quixote-type campaign.

Now we get another closed-door deal. Hopefully, voters, conservative and liberal, will fire back.

Finally, Some Sense on Climate Change

mowbray archBy Peter Galuszka

Pulling the state’s head out of the sand, Gov. Terry McAuliffe has reversed his predecessor’s policy on addressing climate change.

He has reestablished a 35-member panel to see what the state can do to deal with what many scientists believe is an impending crisis. McAuliffe revived the panel first created by Democratic Gov. Tim Kaine and then left to wither away by former Republican Gov. Robert McDonnell.

Ironically, the new panel includes Michael Mann, a former University of Virginia climatologist who was the target of bitter and petty attacks by former arch-conservative Atty. Gen. Kenneth Cuccinelli over his view that mankind was responsible for carbon dioxide-driven greenhouse gases that are helping warm up the earth, melt polar ice caps and potentially flood huge sections of coastal cities such as Norfolk.

It’s about time that Virginia rejoined the 21st Century. McDonnell took the state backwards on environmental issues by gutting commissions such as this one and creating others that were devoid of ecological viewpoints and stacked with members of the fossil fuel industry and utility executives.

McAuliffe’s new commission has utility people like Dominion Virginia Power President Robert M. Blue and Bernice McIntyre of Washington Gas Light Company. But it is also well stocked with green types such as the Sierra Club, the Chesapeake Bay Foundation and the Southern Environmental Law Center whose views were pretty much in the wilderness during the McDonnell term.

It is finally time for the state to realize that climate change is real. Study after study shows that the state is vulnerable – from agricultural impacts brought on by different weather patterns to rising water in coastal areas. One area worth study is doing more to speed the switch to renewable energy sources like solar and wind.

McDonnell had pushed a policy that would make Virginia “the Energy Capital of the East Coast,” but the effort excluded renewables in favor of offshore oil and gas companies, nuclear power and coal.

Curiously, McAuliffe also favors such endeavors as offshore petroleum development. That raises questions in the face of massive fracking onshore for natural gas and the revolution it has sparked. Perhaps the new commission can provide some guidance.

It is refreshing that Virginia is finally emerging from the intellectual horse blinders that kept the debate stuck in Benghazi-style debates over emails at a British university or trying, unsuccessfully, as Cuccinelli did, to harass scientists globally over a ridiculous claim that Michael Mann had defrauded Virginia taxpayers by asserting what most climatologists do – that climate change is real and mankind is a reason for it.

Finally. . .

Denying Truth on the Outer Banks

Sun Realty

Sun Realty

By Peter Galuszka

North Carolina’s Outer Banks have always been a touchstone for me – in as much as anyone can associate permanence with sandy islands being perpetually tossed  around by tremendous wind and water forces.

The Banks and I go back to 1954 and Hurricane Hazel when I was an infant. They mark many parts of my life. So, I read with great interest The Washington Post story by Lori Montgomery about how real estate officials in Dare County and other coastal parts of North Carolina are trying to alter clear-cut scientific projections about how deeply the islands will be under water by 2100.

State officials say that the ocean should rise 39 inches by the end of the century. This would mean that 8,500 structures worth $1.4 billion would be useless. Naturally, this has upset the real estate industry which is pushing for a new projection of an 8-inch rise 30 years from now. Think of it like a photo in a rental brochure. You don’t choose shots of dark and stormy days. The skies must be blue.

Ditto science. The insanity is that so many still don’t believe what is going on with climate change and carbon dioxide pollution. Over the past several years, Virginians, many of whom vacation on the Outer Banks, endured and paid for former Atty. Gen. Kenneth Cuccinelli’s legal attacks against a former University of Virginia climatologist who linked global warming to human activity. The assaults went nowhere.

Instead of addressing such profoundly transitory events, too many in the region say it isn’t so or pick away at what is really happening as we speak. And as Mother Jones magazine points out, it isn’t because weather change deniers, usually conservatives, don’t understand science.

The Outer Banks are an extreme example because of their incredible fragility. Anyone with even a cursory understanding of the islands knows that they are completely under the thumb because they are where two major ocean currents meet.

The only reason Hatteras has developed at all is the Bonner Bridge, an ill-conceived, 51-year-old span over Oregon Inlet so decrepit that it is often closed for repairs. Replacing it has been constantly delayed by the lack of funding and the threat of lawsuits. The federal government has been complicit for decades by spending at least hundreds of millions on sand replenishment programs or offering flood insurance coverage.

About 15 miles south of the bridge is Rodanthe, a flyspeck village just south of Pea Island National Wildlife Refuse. It is at the point of the Banks that sticks out farthest into the Atlantic and is under the strongest attack by ocean currents and storms. Route 12, the only way to evacuate by car when a hurricane comes, is on a narrow spit of constantly shifting sand trapped between the ocean and Pamlico Sound.

I’ve been going to Rodanthe for years. Starting in the 1980s, friends and I would pool our money and  rent one of the big beach houses. We have been constantly amazed how the distance between the structures and the surf is disappearing. One favorite spot was “Serendipity,” a skinny, tall beach house that we rented perhaps twice and featured fantastic views from the top-floor bar.

It was dressed up as a bed and breakfast in the movie ”Nights At Rodanthe,” a 2008 weeper starring Richard Gere and Diane Lane. The film was panned and the house was equally threatened. In fact, the next year, the owner had the whole thing placed on a truck and moved nearly a mile down the coast where there’s a little more sand.

More hurricanes followed, cutting a new inlet a few miles into Pea Island and its watery bird impoundments. The oceanfront houses we used to rent are in trouble. The ones across Route 12 now have dramatic new views.  A small, new bridge spans the inlet.

One can argue that building on the Banks is madness, global warming or not. There’s a lot of truth to this. But rising ocean water is truly going to accelerate the changes no matter how hard politicians or North Carolina’s real estate industry say it isn’t so.

Tea Party Populism vs. Eric Cantor

teddy roosevelt By Peter Galuszka

Political analysts and the media are still trying to tease out the meaning of soon-to-be-former House Majority leader Eric Cantor’s primary loss last week to an obscure college professor.

Two major themes seem to be emerging. One is what the Tea Party’s role was and what the Tea Party really is. The second is how the Big Media missed the story of winner David Brat’s surprising strength, although a number of local publications did get it, including the Chesterfield Observer, a suburban weekly that I write for (although not about politics) and won a special accolade in this morning’s New York Times.

The Times also had a piece Sunday on its front page noting just how closely tied Cantor is to Corporate America. Aerospace giant Boeing saw its stock plummet just after Cantor was clobbered. Over the years, Cantor has gladly done the bidding of big companies, notably in managed care and finance. His donors provide a ready chart.

He’s backed the continuation of the Export-Import Bank that helps guarantee loans for foreign sales (to Boeing no less) and helped kill a bill that would have increased the capital gains tax made by alpha-seeking and ultra-rich hedge fund managers. Cantor does know about big business because he is a lawyer and has a degree in real estate. His wife, Diana, has worked for such Wall Street behemoths as Goldman Sachs. And, of course, Cantor was hatched and grew up in Richmond’s cliquish business community.

The interesting trend here is how Brat, touching a surprisingly sensitive populist nerve, targeted Cantor’s cozy links to Big Business along with the usual complaint menu about illegal immigrants and government spending. Brat hit Cantor for various corporate bailouts, including TARP, backing Medicare Plan D and two unfunded wars.

Such criticism resonated with his supporters, who are conservatives. But unlike the country club Republicans of yesteryear, these voters might be throwbacks to the Gilded Age during the era of gigantic trusts. I am strolling through Doris Kearns Goodwin’s “The Bully Pulpit” which looks at Theodore Roosevelt and William Taft at the turn of the 19th century and it is fascinating reading.

Being a Republican then meant being an upstart and independent-minded troublemaker, not a defender of the status quo and big business interests. The public seemed remarkable well informed and the media was filled with brilliant journalists like Ida Tarbell, Lincoln Steffens and S.S. McClure who took apart trust-builders such as John D. Rockefeller.

There was a real sense that too much economic power was being concentrated in two few hands and if you look at what’s happening today with the mergers of airlines, cable companies and banks, you get an uneasy sense of déjà vu. The result back then was long-standing legislation like the Sherman Anti-Trust Act and bodies like the Federal Trade Commission. The concerns were inequality, lopsided economic clout and the tendency for big companies to abuse their power.

It is in this sphere where the Tea Party types, whomever they are really, might be on to something. I’m all for leniency and compassion on immigration issues but I have to say that some of the anti-Cantor comments might have harkened back to the days of McClure’s Magazine and Tarbell’s extraordinarily detailed dissection of Standard Oil.

Sadly, the journalist profession has been gutted by cost-cutting, which is one reason why the Beltway types missed the Cantor story and scrappy little papers like the Chesterfield Observer got it. If there is growth in the news media, the hot trend is setting up “data-driven” Websites but as the Times notes, these proved inadequate as well in last week’s election because they relied on imperfect data. In other words, garbage in, garbage out, no matter how lively the prose is. What really matters is shoe leather journalism and not numbers crunching.

On-the-ground reporting can capture important clues such as how Cantor misused his Majority Leader bodyguards and Black Suburban SUVs to keep his constituents at bay on the rare occasions he actually sought them out. Otherwise, he seemed to be sequestered at expensive steakhouses. Voters pummeled by the Great Recession got the message.

Add up all of these trends and you might start understanding why Cantor’s defeat was so important. It posits who exactly the Tea Party is and what they actually stand for. It could be the start of a movement as historically significant as the one 125 years ago.