Category Archives: Unemployment

Dave Brat’s Bizarre Statements

 By Peter Galuszka

Almost a year ago, Dave Brat, an obscure economics professor at Randolph- Macon College, made national headlines when he defeated Eric Cantor, the powerful House Majority Leader, in the 7th District Brat Republican primary.

Brat’s victory was regarded as a sensation since it showed how the GOP was splintered between Main Street traditionalists such as Cantor and radically conservative, Tea Party favorites such as Brat. His ascendance has fueled the polarization that has seized national politics and prevented much from being accomplished in Congress.

So, nearly a year later, what has Brat actually done? From reading headlines, not much, except for making a number of bizarre and often false statements.
A few examples:

  • When the House Education and Workforce Committee was working on reauthorizing a law that spends about $14 billion to teach low-income students, Brat said such funding may not be necessary because: “Socrates trained Plato in on a rock and the Plato trained Aristotle roughly speaking on a rock. So, huge funding is not necessary to achieve the greatest minds and the greatest intellects in history.”
  • Brat says that the Affordable Care Act (Obamacare) is a step towards making the country be more like North Korea. He compares North and South Korea this way:  “. . . it’s the same culture, it’s the same people, look at a map at night, half the, one of the countries is not lit, there’s no lights, and the bottom free-market country, all Koreans is lit up. See you make your bet on which country you want to be, right? You want to go to the free market.” One problem with his argument:  Free market South Korea has had a single payer, government-subsidized health care system for 40 years. The conservative blog, BearingDrift, called him out on that one.
  • Politifact, the journalism group that tests the veracity of politicians’ statements, has been very busy with Brat. They have rated as “false” or “mostly false” such statements that repealing Obamacare would save the nation more than $3 trillion and that President Obama has issued 468,500 pages of regulations in the Federal Register. In the former case, Brat’s team used an old government report that estimated mandatory federal spending provisions for the ACA. In the latter case, Politifact found that there were actually more pages issued than Brat said, but they were not all regulations. They included notices about agency meetings and public comment periods. What’s more, during a comparable period under former President George W. Bush, the Federal Register had 465,948 pages, Politifact found. There were some cases, however, where Politifact verified what Brat said.
  • Last fall, after Obama issued an executive order that would protect up to five million undocumented aliens from arrest and deportation, Brat vowed that “not one thin dime” of public money should go to support Obama’s plan. He vowed to defund U.S. Citizen and Immigration Services but then was told he couldn’t do so because the agency was self-funded by fees from immigration applications. He then said he would examine how it spent its money.

The odd thing about Brat is that he has a doctorate in economics and has been a professor. Why is he making such bizarre, misleading and downright false statements?

Interview: McAuliffe’s Economic Goals

 maurice jonesBy Peter Galuszka

For a glimpse of where the administration of Gov. Terry McAuliffe is heading, here’s an interview I did with Maurice Jones, the secretary of commerce and trade that was published in Richmond’s Style Weekly.

Jones, a graduate of Hampden-Sydney College and University of Virginia law, is a former Rhodes Scholar who had been a deputy secretary of the U.S. Department of Housing and Urban Development under President Barack Obama. Before that, he was publisher of The Virginian-Pilot, which owns Style.

According to Jones, McAuliffe is big on jobs creation, corporate recruitment and upgrading education, especially at the community college and jobs-training levels. Virginia is doing poorly in economic growth, coming in recently at No. 48, ahead of only Maryland and the District of Columbia which, like Virginia have been hit hard by federal spending cuts.

Jones says he’s been traveling overseas a lot in his first year in office. Doing so helped land the $2 billion paper with Shandong Tranlin in Chesterfield County. The project, which will create 2,000 jobs, is the largest single investment by the Chinese in the U.S. McAuliffe also backs the highly controversial $5 billion Atlantic Coast Pipeline planned by Dominion because its natural gas should spawn badly-needed industrial growth in poor counties near the North Carolina border.

Read more, read here.

(Note: I have a new business blog going at Style Weekly called “The Deal.” Find it on Style’s webpage —   www.styleweekly.com)

Virginia’s Top Stories in 2014

mcd convictedBy Peter Galuszka

The Year 2014 was quite eventful if unsettling. It represented some major turning points for the Old Dominion.

Here are my picks for the top stories:

  • Robert F. McDonnell becomes the highest-ranking former or serving state official to be convicted of corruption. The six-week-long trial from July to September of the Republican former governor and his wife, Maureen, was international news. In terms of trash, it offered everything – greed, tackiness, a dysfunctional marriage, a relationship “triangle,” and an inner glimpse of how things work at the state capital.  More importantly, it ends forever the conceit that there is a “Virginia Way” in which politicians are gentlemen above reproach, the status quo prevails and ordinary voters should be kept as far away from the political process as possible. It also shows the unfinished job of reforming ethics. The hidden heroes are honest state bureaucrats who resisted top-down pushes to vet dubious vitamin pills plus the State Police who did their investigative duty.
  • Eric Cantor loses. Cantor, another Republican, had been riding high as the 7th District Congressman and House Majority Leader. A wunderkind of the Richmond business elite, Cantor was positioned to be House Speaker and was considered invulnerable, at least until David Brat, an unknown college economics professor and populist libertarian, exploited fractures in the state GOP to win a stunning primary upset. Cantor immediately landed in a high-paying lobbying job for a financial house.
  • Terry McAuliffe takes over. The Democrat Washington insider and Clinton crony beat hard-right fanatic Kenneth Cuccinelli in a tight 2013 race. He bet almost everything on getting the GOP-run General Assembly to expand Medicaid benefits to 400,000 low income Virginians. He lost and will try again. He’s done a pretty good job at snaring new business, notably the $2 billion Shandong-Tralin paper mill from China for Chesterfield County. It will employ 2,000.
  • Roads projects blow up. Leftover highway messes such as the bypass of U.S. 29 in Charlottesville finally got spiked for now. Big questions remain about what happened to the $400 million or so that the McDonnell Administration spent on the unwanted U.S. 460 road to nowhere in southeastern Virginia.
  • Gay marriage becomes legal. A U.S. District Judge in Norfolk found Virginia’s ban on gay marriage unconstitutional and the U.S. Supreme Court pushed opening gay marriage farther. The rulings helped turn the page on the state’s prejudicial past, such as the ban on interracial marriage that lasted until the late 1960s.
  • Fracking changes state energy picture. A flood of natural gas from West Virginia and Pennsylvania has utilities like Dominion Resources pushing gas projects. It’s been nixing coal plants and delaying new nukes and renewables. Dominion is also shaking things up by pitching a $5 billion, 550-mile-long pipeline through some of the state’s most picturesque areas – just one of several pipelines being pitched. The EPA has stirred things up with complex new rules in cutting carbon emissions and the state’s business community and their buddies at the State Corporation Commission have organized a massive opposition campaign. McAuliffe, meanwhile, has issued his “everything” energy plan that looks remarkably like former governor McDonnell’s.
  • State struggles with budget gaps. Sequestration of federal spending and defense cuts have sent officials scrambling to plug a $2.4 billion gap in the biennial budget. It is back to the same old smoke and mirrors to raise taxes while not seeming to. Obvious solutions – such as raising taxes on gasoline and tobacco – remain off limits.
  • College rape became a hot issue after Rolling Stone printed a flawed story about an alleged gang rape of a female student at the prestigious University of Virginia in 2012. Progressives pushed for raising awareness while conservatives took full advantage of the reporter’s reporting gaps to pretend that sex abuse is not really an issue.
  • Poverty is on the radar screen, especially in Richmond which has poverty rate of 27 percent (70 percent in some neighborhoods) and other spots such as Newport News. Richmond Mayor Dwight Jones got a lot of national press attention for his campaign to eradicate poverty but it is really hard to understand what he’s actually doing or whether it is successful. The real attention in Richmond is on such essentials as replacing the Diamond baseball stadium, justifying a training camp for the Washington Redskins and giving big subsidies for a rich San Diego brewer of craft beer.
  • Day care regulation. Virginia has a horrible reputation for allowing small, home day care centers to operate without regulation. Dozens have children have died over the past few years at them. This year there were deaths at centers in Midlothian and Lynchburg.
  • The continued madness of the Virginia Tobacco Indemnification and Community Revitalization Commission. This out-of-control slush fund in the tobacco belt continued its waywardness by talking with Democratic State Sen. Phil Pucket about a six-figure job just as Puckett was to resign and deny a swing vote in the senate in favor of expanding Medicaid. The commission also drew attention for inside plays by the politically powerful Kilgore family and giving $30 million in an unsolicited grant to utility Dominion.

Is McAuliffe Crying Wolf on the Economy?

naval shipyard By Peter Galuszka

Just how bad is the Virginia economy, really?

Gov. Terry McAuliffe, who released a rather modest state budget proposal just a few days ago, has said that the state’s economic picture is bleak because of government spending cuts, most of them at the U.S. Department of Defense, the state’s largest employer, and at other agencies.

“We’re looking down the barrel of a gun,” he told reporters, noting that automatic cuts in federal spending due to sequestration and the run-down of military spending after more than a decade of fighting in Iraq and Afghanistan are badly hurting the state.

There are two curious points. The Washington Post notes that McAuliffe had based some of his gloomy thinking after revenues dipped by $439 million earlier this year. This relates to the $2.4 billion shortfall in the biannual budget. Now, says Finance Secertary Ric Brown, revenues have picked up as the governor and lawmakers have worked to close the shortfall.

There is also a story in this morning’s The Virginian-Pilot that the Norfolk Naval Shipyard (located in Portsmouth, actually) plans to hire some 1,500 workers by this coming September. This will be a net gain of 800 workers making about $21 an hour. The other 700 workers will be to replace retiring ones.

The shipyard, which can handle work on large nuclear ships like aircraft carriers, has a total workforce of 9,500 and the extra hires will take it past 10,000, the highest number since the early 1990s. Most of the new jobs are in skilled trades such as welding and ship fitting.

The Pilot reports that Hampton Roads will lose a total of 18,000 skilled workers by the end of the decade as older employees retire. Replacing them should help mitigate the cuts in federal spending and McAuliffe is doing the right thing by focusing on jobs training and credentialing that will boost high-paying blue collar jobs that don’t require a four-year college degree.

The state’s 23 community colleges are working to come up with a plan required by the federal Workforce Innovation and Opportunity Act, passed this year, to streamline training and make sure that trained workers pass certain requirements.

The Joint Legislative Audit and Review Commission recently issued a scathing report on just how disjointed job training is in the state. It said that there was no system to track how $341 million was spent in state workforce training programs and that only 16 percent of the companies in the state use it. The new federal law may help change that by requiring states to come up with four-year plans on coordinating training.

It could be that McAuliffe is crying wolf to shake up the General Assembly before it convenes Jan. 14. He’s doing just that by including funding Medicaid in his budget again and by calling for restrictions on gun sales (needed). But it may be important to keep in mind that things may not be all that bad, economically.

Big Energy’s Conspiracy with Attorneys General

Former Va. Atty. Gen. Miller --toady for Big Energy

Former Va. Atty. Gen. Miller –toady for Big Energy

By Peter Galuszka

What seems to be strong opposition to a host of initiatives by President Barack Obama and the U.S. Environmental Protection Agency to curtail carbon and other forms of pollution is no mere coincidence.

According to a deeply reported story in Sunday’s New York Times, some state attorneys general, most of them Republicans, are part of what seems to be a covert conspiracy to oppose carbon containment rules in letters ghost-written by energy firms.

And, there’s a big Virginia connection in former Democratic Atty. Gen. Andrew P. Miller and George Mason University which have been bankrolled by conservative and Big Energy money for years.

The cabal has drawn its modus operandi from the American Legislative Exchange Council, funded by the ultra-right, oil-rich Koch Brothers of Kansas. In that case, ALEC prepares “templates” of nearly identical legislation that fits the laissez-faire market and anti-government and regulation principles held dear by the energy and other big industries. Many marquee-name corporations such as Pepsi, McDonald’s and Procter & Gamble have dropped their ALEC membership  after public outcries.

In the case of the attorneys general, big petroleum firms like Devon Energy Corporation of Oklahoma draft letters opposing proposals that might hurt their profits such as ones to regulate methane, which can be a dangerous and polluting result of hydraulic fracking for natural gas. The Times notes that Oklahoma Atty. Gen. E. Scott Pruitt then took Devon’s letter and, almost-word-for-word, submitted it in his “comments” opposing EPA’s proposed rules on regulating fracking and methane.

The secretive group involves a great deal of interplay involving the Republican Governor’s Association which, of course, helps channel big bucks campaign contribution to acceptable, pro-business attorneys general. In 2006 and 2010, Greg Abbott of Texas got more than $2.4 million from the group. Former Virginia Atty. Gen. Kenneth Cuccinelli got $174,5638 during his 2009 campaign.

One not-so-strange bedfellow is former Virginia Atty. Gen. Andrew P. Miller who was in office from 1970 to 1977 and is now 82 years-old. He’s been very business promoting energy firms. As the Times writes:

Andrew P. Miller, a former attorney general of Virginia, has in the years since he left office built a practice representing major energy companies before state attorneys general, including Southern Company and TransCanada, the entity behind the proposed Keystone XL pipeline. The New York Times collected emails Mr. Miller sent to attorneys general in several states.

“Mr. Miller approached Attorney General Scott Pruitt of Oklahoma in April 2012, with the goal of helping to encourage Mr. Pruitt, who then had been in office about 18 months, to take an even greater role in serving as a national leader of the effort to block Obama administration environmental regulations.

“Mr. Miller worked closely with Mr. Pruitt, and representatives from an industry-funded program at George Mason, to organize a summit meeting in Oklahoma City that would assemble energy industry lobbyists, lawyers and executives to have closed-door discussions with attorneys general. The companies that were invited, such as Devon Energy, were in most cases also major campaign donors to the Republican Attorneys General Association.

“Mr. Miller asked [West Virginia Attorney General Patrick Morrisey] to help push legislation opposing an Obama administration plan to regulate carbon emissions from existing coal-burning power plants. Legislation nearly identical to what Mr. Miller proposed was introduced in the West Virginia Legislature and then passed. Mr. Morrisey disputed any suggestion that he played a role.”

Not only that, but George Mason has an energy study center that is bankrolled by Big Energy and tends to produce policy studies of what the energy firms want. It also has the Mercatus Center, a right-wing think tank bankrolled by the Koch Brothers.

So, when you see what seems to be a tremendous outcry against badly needed regulations to curb carbon emissions and make sure that fracking is safe, it may not be an accident. And, it comes from attorneys general who should be protecting the interests of average residents in their states instead of being toadies for Big Energy.

More Defense Cuts Plague Virginia

Special deliveryBy Peter Galuszka

Virginia continues to see painful military spending cuts in the aftermath of the years’- long U.S. intervention in Iraq and Afghanistan.

Among the latest news is that the Army may cut 3,600 jobs at Ft. Lee, ironically the site of a recent and large expansion, by 2020. That could result in a decline of 9,000 residents near Petersburg which is close to  the base.

Plus, the Air Force plans on cutting 742 positions at its Air Combat Command headquarters at Langley Air Force Base in Hampton although some of the positions are already vacant and won’t be filled.

These are just some of the changes that are affecting Virginia, which is the No. 2 defense industry state after California. Many of the cuts involve active duty personnel whose vacancies are not being filled or are being asked to take early retirement.

Defense industry jobs are likewise taking cuts. A report by the National Association of Manufacturers states that in 2014, California will lose the most military-related jobs (148,400) followed by Virginia (114,900) and then Texas (109,000). Maryland will lose 40,200 jobs, the report says.

Many of the jobs are in heavy manufacturing, such as aerospace and ship building, and search and navigational services, but general business and other services will also be affected.

The news is especially hard on Petersburg and nearby Ft. Lee which just a few years ago enjoyed a major boost after a Base and Realignment and Closure round consolidated many multi-service logistics and supply functions. The influx of thousands of soldiers, contractors and their families boosted the city and surrounding areas.

Hampton, the location of Langley Air Force Base, doesn’t seem to be in store for such heavy impacts since the cuts involve some jobs already being lost to attrition. Other bases and areas hurt by the Air Force cuts include Washington, D.C.; San Antonio; Texas; Dayton, Ohio; and Belleville, Illinois.

Newport News Shipbuilding, now owned by Huntington Ingalls Industries, could lose a deal to build one submarine and might delay another to build as Ford class nuclear attack carrier, if automatic defense budget cuts return in 2016. Another potential hit: refueling the nuclear-powered carrier George Washington but may mothball the ship if the budget cuts kick in. About 24,000 people work at Newport News Shipbuilding, making it the largest private employer in the state.

Besides the Washington area, Hampton Roads is greatly dependent upon defense spending. Some 47 percent of the regional economy depends on it. Anticipating more defense cuts, former Gov. Robert F. McDonnell formed a commission to come up with ideas before he left office this year. One of them is to be pro-active and recommend cuts of its liking before the federal government acts.

One of its recommendations cuts both ways on environmental issues. It recommends against offshore oil and gas drilling in watery areas where the military trains, thus making them available over the long term. It likewise recommends against wind turbines in the same areas.

These are interesting, but very difficult choices.

Brat and Cantor: Two Unsavory Choices

BratCantorWebBy Peter Galuszka

The hottest political race coming up is the Republican primary this Tuesday involving the 7th Congressional District now represented by Eric Cantor, a powerful conservative who is House Majority Leader and could possibly one day be Speaker of the House.

His opponent, college professor David Brat, has gotten much national attention because Brat is trying to out-Tea Party Cantor who tried to shed his Main Street background and led the insurgent Tea Party parade during their days of glory back in 2010.

But if you want to see just how intellectually barren both men are, read what they wrote in opposing columns in the Richmond newspaper this morning. They show just how out of touch they are and how they are dominated by a tiny group of hard-right fanatics who have split the state GOP.

Brat is an economics professor at Randolph-Macon College in the quaint railroad town of Ashland that might be a set for a Jimmy Stewart movie.

He spends a lot of time debunking Cantor’s ridiculous claim that he is a “liberal” college professor but the very fact that he is doing this is a throwback to the Old Virginny days of yore. First, off, what is wrong with being a “liberal professor?” Are we supposed to have academics that pass a litmus test? Maybe Brat would have House UnAmerican Activities Committees on colleges to make sure that “liberal” professors don’t poison young minds.

Secondly, the use of the term is an exercise in euphemism that smacks of the Massive Resistance days when a candidate was accused of being a “social engineer” if he or she backed integration and civil rights.

And while Brat makes some fair points about Cantor masquerading as a budget hawk, his ideas on finally dealing with undocumented foreign-born residents are downright scary and are obviously intended as a populist ploy to the lower elements of voters.

Indeed, Brat’s column raises serious questions about just how well he understands economic reality, especially when it comes to immigration. Forces are aligning for some kind of long-overdue resolution of immigration. He claims Cantor backs amnesty for undocumented workers. (If so, what’s wrong with that?)

Brat paints a weird picture in which “illegals,” working in collusion with giant corporations, are stealing jobs from “real” Virginians. I won’t go into the borderline racist and nativist aspects of his statements. They smack of the older days of the No Nothings and the Ku Klux Klan that wanted to keep non-Protestants, such as Catholic Irish, Poles, Germans and Italians, or Chinese or Japanese, out of the country.

Strangely and even more troubling, Brat simply doesn’t understand the American labor market. One of the reason so many immigrants are in some sectors of the economy, such as construction and poultry processing, are because the jobs are dirty, messy and there aren’t enough native-American workers willing or able to do them. That is why turkey processing plants in the Shenandoah Valley have so many hard-working Hispanic immigrants. Ditto construction jobs.

At the other end of the spectrum, Professor Brat ignores the dilemma at the high-end of the economy. American universities are not producing enough software and other engineers so we have to import them through visa programs. Some companies are so hungry for foreign intellectual talent that immigrants end up working just across the border in Canada where it is easier to get visas although their efforts support American firms.

This may come as news to Brat in his little college town, but the world is becoming more global and, like it or not, there will be more foreign-born people working here and elsewhere. His complaint that illegals are getting soldier jobs that Americans might want is strange. The military needs to wind down after 13 years of war. One wonders if Brat even has a passport and has traveled overseas.

Cantor’s column is the usual Eddie Haskell boilerplate. He spends a lot of time tearing down the Affordable Care Act. Republicans have launched at least six unsuccessful assaults on it and still refuse to accept the Supreme Court’s decision of a couple of years ago.

Generously funded by the managed care industry, Cantor raises no alternatives to the current health care system that is plagued with overbilling, a lack of transparency and has cruelly prevented millions from getting coverage because of “pre-existing conditions.” Granted the roll out of exchanges was a mess last year, but health care sign ups have exceeded expectations in Virginia. The expected number was 134,800 in enrollment plans under the ACA. At the beginning of May it was 216,300.

Neither candidate talks about crucial issues such as income inequality, climate change or America’s changing role in world diplomacy. Neither talks about about poverty or smart growth or student debt.

Cantor is likely to win Tuesday but neither man seems worthy of leadership. They are just more evidence about how the right-wing fringe has been allowed to highjack the agenda. As this continues to happen, Virginia will be stuck in its ugly past.

Richmond’s Incredible Blindness

Mayor Jones

Mayor Jones

By Peter Galuszka

Following up on Richmond Opening Its Kimono post from Monday, I note some significant news developments and points:

First, the Richmond City Council has restored $10.6 million of the $13.6 million Mayor Dwight Jones wanted to keep his plan to build a new baseball stadium, slavery museum and mixed use development worth a total of $79.6 million. This ensures that the project will move forward.

Incredibly, at the same time, the council cut school maintenance from $3.2 million to $2 million when schools are in deplorable condition. “It’s been very encouraging to see the outpouring of support for public schools this year,” Jones said.

Secondly, I am deeply appreciative to commenter CRB who laid out many of Richmond’s problems that obviously are in need of immediate attention despite the Ruling Elite and Mayor Jones’ stubborn and relentless push for their dubious and unneeded Shockoe Bottom plan.

The clarity is so crystal here that it is overwhelming.

Richmond has among the worst schools in the state. It has the worst health conditions of any large city in the state. It has among the highest poverty levels in the state. So what gets cut? Funds to resolve serious and immediate problems. What gets funded? Pie-in-the-sky.

As BR commenter CRB states:

“They need to explain how a baseball stadium is the answer for economic development when the city ranks 121 out of 133 counties in Virginia in overall “health outcomes” – including (to name just a couple of markers) almost twice the number of premature deaths than the rest of the state, three times the number of reported sexually transmitted infections. In addition, only 7% of third graders PASSED the SOL math test during 2012-13 school year. We have the worst schools in the state of Virginia, and we have one of the lowest percentages of primary care physicians, dentists, and mental health providers. The brokenness of this city goes on and on and this group suggests that putting a baseball stadium, using public funds is the answer instead of using those funds to begin addressing the societal infrastructure. It’s simply heartbreaking.”

I did a little research that backs up CRB. The University of Wisconsin’s Population Health Institute published a recent student comparing health rates of all Virginia’s cities and counties for 2012. Guess where Richmond ranked? No. 125, which is dead last for big Virginia cities.

Petersburg was close at No. 123. Roanoke at No. 116 and Norfolk at No 106. Counties are healthy. Chesterfield was No. 39 and Henrico was No. 36.

Addressing health care should be a huge concern. Richmond boasts of Virginia Commonwealth University Health System and the former Medical College of Virginia that offer advanced level care for trauma, cancer, reattaching severed organs and so on. But why is that if you walk a few blocks north, west or east of the sprawling medical campus, you have horrendous conditions that lead to truly bad numbers? Where are nurses and primary care doctors? Preventive programs? Child care services? Elder-care?

As for cutting possible increases in school maintenance, all you need to do is click on this site and look at the photos by Style chief photographer Scott Elmquist and the story by reporter Tom Nash. Rather shocking, I’d say.

As for the 26 percent poverty rate, Mayor Jones has created some commissions and has brought in some Harvard-educated academics but it is hard to see what the trajectory is other than more studies.

So, there you have it, sports fans (excuse the fun). It’s the middle of the 9th inning. The score:

Shockoe Bottom: $10.6 million.

School Maintenance: $2 million.

Tar Heel Grief Just Down the Road

By Peter Galuszka

It’s sad to see mccrorytwo states to which I have personal ties – North Carolina and West Virginia — in such bad ways.

The latest raw news comes from the Tar Heel state where we are seeing the handiwork of hard-right- Gov. Pat McCrory who has been on a tear for a year now bashing civil rights here, pulling back from regulation there.

The big news is Duke Energy’s spill of coal ash and contaminated water near Eden into the Dan River, which supplies Danville and potentially Virginia Beach with drinking water. Reports are creeping out that the McCrory regime has been pressuring the N.C. Department of Environment and Natural Resources (DENR) to pull back from regulation.

According to Rachel Maddow, DENR officials had stepped in with environmentalists as plaintiffs on two occasions in lawsuits to get Duke Energy to clean up coal ash. But when a third suit was filed, McCrory, a former Charlotte Mayor and career Duke Energy employee, influenced a third lawsuit settlement against Duke to be delayed.

Also, not long before the Eden spill, the City of Burlington released sewage into the Haw River which flows into Lake Jordan serving drinking water to Cary, Apex and Pittsboro. DENR allegedly did not release news of the spill to the public.

Late last year, Amy Adams, a senior DENR official, resigned to protest the massive cuts McCrory and Republican legislators were forcing at her department, notably in its water quality section.

McCrory’s been on a Ken Cuccinelli-style rip in other ways such as cutting back on unemployment benefits in a top manufacturing state badly hit by the recession and globalization. He’s shut down abortion clinics by suddenly raising the sanitation rules to hospital levels, much like former Gov. Robert F. McDonnell did in Virginia.

A reaction to McCrory is building, however. Recently, I chatted with Jason Thigpen who served in the Army and was wounded in Iraq in 2009. When Thigpen returned to his home in southeastern North Carolina, he was upset that the state was sticking it to vets by making them pay out-of-state college tuition in cases where some had been state residents before deploying. So, he started an activist group to protect them.

Next, Thigpen decided to run for Congress. His views fit more neatly with the Republican Party but he simply could not take what McCrory was doing in Raleigh so he became a Democrat and is a contender in a primary this spring.

Why the switch? “I just couldn’t see what the GOP was doing with my state in Raleigh,” He told me. “Also, I didn’t like what they were doing with women. I had served with women in war and they come back to North Carolina and they are treated like second class citizens,” he said.

West Virginia, meanwhile, is still struggling with its drinking water issues from a spill near Charleston. Although drinking water for 300,000 is said to be potable, children are reporting rashes.

Somehow, this conjures up another story involving a Republican governor – Arch Moore.

Back in 1972, Moore was governor when Pittston, a Virginia-based energy firm, had badly sited and built some damns to hold coal waste. After torrential rains, the dams burst and a sea of filthy water raced down the hollows, inundating small villages and killing 125 people. The state wanted a $100 million settlement from Pittston for the Buffalo Creek disaster, but Moore interceded and they settled for a measly $1 million.

Moore was later convicted of five felonies after he was caught extorting $573,000 from a coal company that wanted to reduce its payments to a state fund that compensated miners who got black lung disease.

Does anyone see a pattern yet?

Meanwhile, we in Virginia should breathe a sigh of relief considering just close it was dodging the bullet last election.

Keep ’em Poor; It’s for the Best

minimum-wages-around-the-worldBy Peter Galuszka

The think tanks are spinning their lines now that Congress is considering raising the federal minimum wage.  A Democratic proposal would hike the level from $7.25 an hour to $10.10 by 2016, putting more money in the pockets of 27.8 million people.

As The New York Times points out this morning, think tanks and other professional navel gazers are coming out with the pros and cons of doing what seems to be a no brainer. One Employment Policies Institute in Washington  claims that hiking the wage would increase poverty and unemployment.

Not reported, the Times notes, is that the think tank is run by a P.R. group paid in part by the restaurant industry which has a vested interest in keeping wages low.

So, I guess it is no surprise that on Sunday’s “Commentary” front page in the Richmond Times-Dispatch  is a piece making pretty much the same argument. It was written by A. Fletcher Mangum, managing partner of Mangum Economics in Richmond, who also advises the governor and General Assembly.

Mangum argues that raising the wage is a bad idea because, “If politicians want to help the least fortunate among us, knocking an unlucky number of them into employment is simply not the best way to do it.” Virginia is one of 19 states that follows the federal minimum wage as its own. Twenty states have higher minimum wages and four have lower rates and (of course) are all in the South.

Mangum’s logic is keep ’em poor because they are more hireable that way. Mangum offers no other economic argument, but that should be no surprise since he’s writing for the Richmond Times-Dispatch whose editorial policies tend to represent the Capital’s monied classes and business interests. It was this way when the Bryan family owned the TD and hasn’t really changed with Warren Buffett.

Now I have been an editor and actually used to handle the first reading of some economic opinion pieces like this. If I had been at the keyboard, I would have demanded a higher altitude argument than improving wages will hurt the poor because if you increase the price of something people automatically buy less of it.  One could make a similar argument as justification for usury, penury and slavery that way, but I don’t edit the TD. I do know that Richmond and Virginia in general are rather short on economic forecasters.

The New York Times, which is somewhat more sophisticated than Richmond’s daily newspaper, on the same day refuted conservative arguments that hiking the minimum wage only hurts the lowest working classes. “The weight of evidence shows that increases in the minimum wage have lifted pay without hurting employment. . . ,” the Times says.

But that doesn’t stop conservatives from claiming, as Mangum does, that raising the minimum wage prompts less employment or that it will push up prices for goods. “Those arguments are simplistic,” The Times says.

I tend to agree. The bigger issue facing this country is dealing with the disparity in income and larger gulf between classes. CEO pay has skyrocketed to obscene levels over the past decades while CEO performance has hardly matched it.

Yet there are plenty of people out there, such as Mr. Mangum, who seem to want to keep people making less than $15,000 a year by arguing disingenuously that it’s really the best they can hope for.