• Did Planned Parenthood Exchange Fetal Tissue for Money?


    Dahlia Lithwick thinks that pro-life politicians are lying when they say that Planned Parenthood sold baby parts. So far, she says, every state investigation has found no violation of the law by Planned Parenthood, despite the fact that it is, indeed, illegal to sell baby parts. Ramesh Ponnuru disagrees:

    Assume that all of these states went through an active and thorough inquiry, though, and Lithwick’s conclusion still isn’t correct. That we do not have proof of lawbreaking by Planned Parenthood does not mean we do not have evidence that it participates in the exchange of fetal tissue for money. Planned Parenthood, after the videos came out, announced that it would stop taking money for fetal tissue, which would seem to be conclusive evidence that it previously did so. As for whether this was merely “reimbursement,” we have the videos themselves, in which a Planned Parenthood official says that abortion clinics “can do a little better than break even” from this market, and another one says they can make “a fair amount of income.”

    There is, of course, no question that Planned Parenthood (a) received money and (b) provided fetal tissue for research purposes. Nobody has ever denied it. The question is whether they broke the law, which forbids “any person to knowingly acquire, receive, or otherwise transfer any human fetal tissue for valuable consideration.” But what, exactly, is valuable consideration? Well, here’s the law:

    The term “valuable consideration” does not include reasonable payments associated with the transportation, implantation, processing, preservation, quality control, or storage of human fetal tissue.

    Regardless of what’s on the videos, every investigation of Planned Parenthood has concluded that this is all they did: they accepted reasonable payments to reimburse them for their actual costs of extracting and preserving the tissue. So does that constitute “exchange of fetal tissue for money”?

    This starts to get abstract pretty quickly, but as always, I’m eager to help. Here’s an analogy. Suppose you want a can of soup. I’m going shopping today, so I volunteer to pick up a can of soup for you. It costs a dollar. When I get home, I give you the soup and you give me a dollar. Did I exchange soup for money?

    I don’t think so. Now try another one. Instead of going to the store, I call an Uber driver, who goes to the store for me. I give him a dollar for the soup and he charges me a dollar for the trip. I’m out two dollars, so this time you give me two dollars for the soup. Did I exchange soup for money?

    Nope. Now let’s try a final example. A surgeon performs an abortion at my clinic. I ask him to take some extra time to extract specific pieces of fetal tissue. His fee for this is $50. Then I have to package it, label it, fill out some federal forms, and store it in a purpose-built freezer. That costs me $20. Then I have to ship it. The medical transport company charges me $40 for this service. In return, you give me $110 for the tissue. Did I exchange fetal tissue for money?

    Common sense says I didn’t. Ramesh Ponnuru thinks I did. I’ll let you decide who’s right.

  • Russia Is Pretending to Be Angry Over Montenegro Joining NATO


    After seven years of work, Montenegro has finally been invited to join NATO:

    NATO announced plans on Wednesday to enlarge its membership, a move that brought an angry response from Moscow….In Moscow, a Kremlin spokesman, Dmitry S. Peskov, said that NATO’s expansion would be met with retaliatory measures from Russia, Reuters reported, and Russia was also reportedly planning to halt joint projects with Montenegro.

    In case you’re geographically challenged, the map on the right shows NATO’s current members (in dark blue) as well as the location of Montenegro. As you can see, Montenegro is across the Adriatic from Italy, about 500 miles from Ukraine and a thousand miles from Russia. Joining NATO is not exactly a threat either to Russia’s borders or to its sphere of influence.

    But it used to be part of Yugoslavia, which was a Soviet ally back in the day. So this requires Vladimir Putin to stamp his feet and claim that Russia’s heritage is being attacked by the West, blah blah blah. You may safely ignore it. This hardly came as a surprise to the Russians, and it hardly represents a threat to them. It’s just an opportunity for a bit of jingoism to shore up the home market.

  • Big Recessions Are Good For Right-Wing Politics


    I guess today is David Dayen day. Over at the New Republic, he points me to an interesting new historical study of systemic banking crises. Here’s what happens when the financial system implodes:

    Both before and after WWII, the authors find the same dynamic: the voting share of far-right parties increases by about a third and national legislatures become more fractured and dysfunctional. This doesn’t happen after normal recessions. Only after major recessions caused by a banking crisis.

    Why? The authors are unsure. One possible explanation, they say, is that financial crises “may have social repercussions that are not observable after non-financial recessions. For example, it is possible that the disputes between creditors and debtors are uglier or that inequality rises more strongly….Financial crises typically involve bailouts for the financial sector and these are highly unpopular, which may result in greater political dissatisfaction.” Or maybe this: “After a crisis, voters seem to be particularly attracted to the political rhetoric of the extreme right, which often attributes blame to minorities or foreigners.”

    Since we’re guessing here, I’ll add my two cents. People are, in general, more generous when times are good. Policywise, they’re more likely to approve of safety net programs that help the poor, which are generally associated with the left. But when times turn bad, people get scared and mean—and the longer the bad times last, the meaner they get. When people have lost their jobs, or had their hours cut, or seen the value of their home crash, they’re just not as sympathetic to helping out the poor. They’re looking out for their own families instead.

    Politically, the result of this is pretty obvious. Liberal parties think that bad times are precisely when the poor need the most help, so they propose more social spending. Right-wing parties, by contrast, oppose increased spending.

    In public, this usually isn’t framed as support or opposition to doling out money to the poor. Liberals talk about stimulus and countercyclical spending. Conservatives talk about massive budget deficits and skyrocketing government outlays. But it doesn’t really matter. What people hear is that liberals want to spend more on the poor and conservatives don’t. When people are feeling vulnerable and mean, the conservative message resonates with them.

    From a practical policy standpoint, this makes little sense. Liberals are right that recessions are the best time to spend more on safety-net programs, both because the poor need the help and because it acts as useful stimulus. But human nature doesn’t work that way, and conservatives have the better read on that.

    So what’s the answer? Dayen suggests that banks and bank bailouts are central to this dynamic, so we need to take a meat axe to the political power of the financial sector. I’m all for that. But my guess is that this isn’t really key. I think people just get scared when times are bad, and hate the idea of their tax dollars going to other people. This means the answer is to assuage both their financial anxiety and their perception that their money is being spent on the poor. So how about something that dramatically makes this point? Say, a one-year income tax holiday for everyone making less than $70,000 coupled with explicit promises to increase the deficit and help the poor. The tax holiday could be extended year by year as necessary, or phased out gradually.

    Why something like this? Because it puts more money in everyone’s pocket and reduces their angst over money matters. It also makes it crystal clear that their money isn’t being spent on the poor. They aren’t paying any taxes, after all. Under those circumstances, helping out the poor would probably strike most people as a lovely idea.

    Obviously conservatives would still oppose this, and the tax holiday wouldn’t last forever. Still, it’s worth a thought. You need something dramatic to cut through people’s fears, and this might do it.

  • Big Banks Lose a Battle


    In order to close a $70 billion gap in highway funding, Congress plans to raid the Federal Reserve and sell some oil from the Strategic Petroleum Reserve. Yesterday I called these moves “ill considered,” but David Dayen writes that there’s at least one pay-for in the transportation bill that’s also pretty good public policy.

    Ever since its founding, the Fed has paid banks a 6 percent annual dividend on the stock they buy to become members of the Federal Reserve system. In 1913 this was designed to entice banks to join the newfangled scheme. Today, it’s just an annual gift. So Senate drafters decided to cut the dividend to 1.5 percent and use the rest of the money for the transportation bill. Banks went ballistic, but in the end they were unable to keep their full handout:

    When the final bill was released Tuesday, the dividend reduction remained in there, albeit with some modifications.

    The reduction now applies only to banks with over $10 billion in assets, compared to the $1 billion threshold in the original bill. Instead of cutting the dividend to 1.5 percent, the rate will now match the interest rate of the highest-yield 10-year Treasury note at the point that the dividend is due. For context, the high yield at the last Treasury auction was 2.304 percent.

    It’s a small thing, but it’s always nice to see big banks lose a battle now and again. It keeps us all on our toes.

  • Ted Cruz Is Counting On Republican Voters To Be Less Bloodthirsty Than Most People Think

    Richard Ellis/Zuma


    One of the interesting things about the GOP primary race is that uber-conservative Ted Cruz is a bit of a dove when it comes to foreign policy. It’s not always easy to see this behind the bellicose rhetoric favored by Republicans, but even at the very beginning of Cruz’s campaign he said things like, “It’s worth noting, in eight years, the largest country Ronald Reagan ever invaded was Grenada.” In the four debates so far, Cruz has adopted less hawkish positions than most of the other candidates, and today he spelled out his national security stance in an AP interview:

    While promising to destroy the Islamic State, beat back aggression from Russia, China and Iran, and ensure extremists don’t infiltrate the U.S. homeland, Cruz also places notable limits on his approach to national security. While Syrian president Bashar Assad is undoubtedly a “bad man,” removing him from power would be “materially worse for U.S. national security interests.” He is unwilling to send more U.S. ground forces into the Middle East and rejects the idea that torture can serve as an appropriate interrogation tool.

    “We can defend our nation and be strong and uphold our values,” he says. “There is a reason the bad guys engage in torture. ISIS engages in torture. Iran engages in torture. America does not need to torture to protect ourselves.

    But if Cruz is generally trying to position himself as the most conservative candidate running, why the restraint on foreign policy? Brian Beutler argues that it’s because Cruz understands the conservative base better than Marco Rubio and some of the other candidates:

    Cruz is highly attuned to the views and grievances that animate Republican voters, even when they are out of step with the right-intellectual consensus. One of these arenas, where the right-wing position on a left-right axis fails to neatly line up with Republican voter sentiment, is foreign policy.

    Though they share a desire to be tough on terrorism, grassroots conservatives, unlike many Washington hardliners, don’t want the U.S. mired in unbounded entanglements. Here, the rightmost position—Rubio-esque neoconservatism—is identified with the dreaded Washington establishment, while organic conservative preferences are reflected in broad support for less militarily adventurous candidates. Republican voters trust Donald Trump to fight terrorism more than any other candidate by a wide margin….These voters consider anti-terrorism a priority but are uninterested in a return to the George W. Bush doctrine. It’s why Trump’s line about “bomb[ing] the shit/hell” out of ISIS is such a hit with his supporters—but those supporters would also rather Russia get bogged down in an ugly war than us.

    It’s also why Cruz isn’t crouching against Rubio’s foreign-policy attacks, but counter-striking with a ferocity, and an approach, that will surprise the shapers of conventional wisdom.

    This difference is likely to become sharper over the next month or two. Both Rubio and Cruz probably think it’s helpful to carve out some concrete differences with the other, and both probably think their version of foreign policy is better attuned to the current Republican id.

    So who’s right? I wouldn’t presume to guess at the details of the Republican id at the moment. But I will say that both Iowa and New Hampshire probably still bear traces of traditional conservative isolationism, and Cruz’s approach might go down pretty well there. Once the primary moves to other states, who knows? But wins in the first two states sure wouldn’t hurt Cruz’s chances.

  • Congress Has Agreed On a Highway Bill!


    Maybe Paul Ryan really is getting a handle on this whole governing thing:

    Congressional negotiators have agreed to a $305 billion measure to fund highways and mass-transit projects for five years, the longest in almost two decades—and an unexpected show of agreement after years of clamoring by state transportation officials for money for infrastructure projects.

    ….The agreement was made possible when lawmakers identified a collection of strategies to offset the costs. Among other things, the measure would raise revenue by selling oil from the nation’s emergency stockpile and taking money from a Federal Reserve surplus account that works as a sort of cushion to help the bank pay for potential losses.

    The “strategies” here are necessary because the gas tax has declined over the past two decades, and unlike in past eras, inflationary erosion is no longer being offset by a rapid increase in miles driven. As a result, the highway trust fund doesn’t have enough money to pay for all the stuff Congress wants to do. This is being fixed by funding highways partly by gas taxes and partly by other revenue sources, which destroys the principle that “people who use federal transportation systems should pay for the projects.”

    Of course, this is a dumb principle anyway. Lots of people benefit from transportation infrastructure who don’t pay gas taxes. We should just ditch this principle for good and instead fund the government like this:

    1. Collect tax money from various sources.
    2. Put it all in the general fund.
    3. Spend the money as Congress directs.

    See? Easy peasy. We still have the problem of matching revenue and spending, of course, but at least we get rid of all the nonsense about funding specific programs from specific sources and worrying about trust funds “going broke.” Nothing is going broke. We’re just raising money and spending money. If we’re worried about a balanced budget, then we have to raise taxes or reduce spending, and it doesn’t really matter which taxes or which spending we target. It’s all just money.

    So I’m perfectly happy that Congress is ignoring the “principle” of funding transportation projects only via gas tax money. On the other hand, the revenue sources they’re tapping in order to pass this bill are probably pretty ill considered. Both are in the nature of emergency funds, and both are one-time deals that can’t be repeated. But in a world in which taxes not only can’t be raised, but can’t even be kept the same, I guess there’s little choice.

  • The Great Donald Trump Polling Gap, Not Explained


    Here’s something pretty interesting: It turns out that Donald Trump does significantly better in robocall and online polls than he does in traditional live-interview polls. Harry Enten shows the difference on the right. As Trump might say, it’s yuuuge: a full 10-point difference in the latest polling.

    This is peculiar for several reasons. First, this gap didn’t really open up until September. Second, we never saw a gap of this size in 2012. Third, since Enten doesn’t mention this, I assume other 2016 candidates don’t show gaps anywhere near this big.

    So what’s going on? Enten suggests a few reasons why non-live polls might be a bit less accurate, but in the end he doesn’t really know. And whatever the reason, why does it affect only Trump in a substantial way? This is very mysterious. And until people start voting, we don’t even know for sure which type of poll is more predictive. It’s just another way in which this year’s Republican primary is winning awards for all-time weirdness.

  • It’s Not Just Middle-Aged Whites Who Are Killing Themselves These Days


    I’m not sure why Josh Marshall decided to write about the Case/Deaton mortality study today, but he did. Here’s what he says:

    They made a startling discovery. As you would expect, every age and ethnic/racial grouping has continued to see a steady reduction of morbidity (disease) and increase in lifespans for decades. But there’s one major exception: middle aged (45-54) white people. Since roughly 1998, disease and death rates for middle aged white men and women has begun to rise.

    ….We might assume that a middle aged population group, under some mix of economic and societal stress, would be hit by the classic diseases of life stress: heart disease, cancer, diabetes, etc. But that’s not it. These people are quite simply killing themselves — either directly or indirectly. According to Case and Deaton’s study, the reversal in the overall mortality trend is driven by three causes: drug and alcohol poisonings, suicide and chronic liver disease. In other words, either literal suicide or the slow motion suicide of chronic substance abuse.

    I don’t really blame Marshall for saying this, since Case and Deaton go to considerable lengths to focus on this age group. But it’s just not true. Their own data shows that every white age group has seen a big increase in mortality from suicide/alcohol/drugs. I’ve tried to make this clear before, but I’ll try again today with a brand new chart. This is based on Figure 4 from the Case/Deaton paper and it shows the increase in mortality for all age groups.

    The biggest increase isn’t from 45-54. It’s from 30-34 and 50-54. In fact, 45-49 saw one of the lower increases.

    So why did Case and Deaton focus on the 45-54 age group? They explain it themselves:

    The focus of this paper is on changes in mortality and morbidity
    for those aged 45–54. However, as Fig. 4 makes clear, all 5-y age
    groups between 30–34 and 60–64 have witnessed marked and similar increases in mortality from the sum of drug and alcohol poisoning, suicide, and chronic liver disease and cirrhosis over the period 1999–2013; the midlife group is different only in that the sum of these deaths is large enough that the common growth rate changes the direction of all-cause mortality.

    That’s it. The 45-54 group doesn’t have the largest increase in death from suicide/alcohol/drugs. The only thing that makes them different is that the increase in these deaths “changes the direction of all-case mortality.” In other words, their line on the chart went from sloping up to sloping down. That’s the only reason to focus on them: because they crossed the zero line.

    But that’s purely esthetic. If, say, the mortality rate of one group goes from -3 percent to -1 percent, and the other goes from -1 percent to +1 percent, they’ve both changed by two percentage points. The latter one, however, goes from negative to positive, and that makes for a dramatic chart. But that’s all it does.

    I wouldn’t care so much about this except that people are drawing a lot of conclusions about “what’s wrong with middle-aged whites?” without noticing that the answer might very well be “nothing.” A better question is, “what’s wrong with America?” As Case and Deaton show, the mortality of middle-aged US whites did indeed start increasing around 1999, while the mortality rate in other advanced countries continued to decline steadily. I’d like to see that chart for all age groups before I tried to draw any conclusions, but it sure seems like we should be focusing on this, not on middle age. It’s not clear that middle age really has much to do with any of this.

  • Syrian Refugee Camps: “Really Quite Nice” or Brutal Hellhole? Ben Carson Explains.


    I don’t think I’d bother with this if I had something better to write about, but when life hands you lemons, you write a blog post with them anyway. Here is Ben Carson this morning:

    Carson last week visited Jordan to tour Syrian refugee camps in an effort to bolster his foreign affairs credentials, something he has been criticized for lacking. Carson called the camps “really quite nice” and suggested they should serve as a long-term solution. On TODAY, he called the Jordanians “very generous people” who have set up camps and hospitals “that work very well” but just lack to the resources to support the efforts.

    And here is Carson writing about Syrian refugees on the same day:

    Many are now housed in refugee camps, such as the one I visited, the Azraq refugee camp. The Azraq camp is located in a bleak and deserted stretch of desert that was built to house Iraqis and Kuwaiti Gulf war refugees.

    ….Here is a picture of life in Azraq: The camp is a bleak expanse of row after row of white sheet metal shelters. There is no electricity or air conditioning or heat against the scalding desert summer temperatures or cold winds of winter. Lack of electricity adds further hardship, as people are forced to choose between having light to see their way to the bathroom at night (six shelters share one bathroom) and charging their cellphones, which connects them to family and the outside world.

    Seriously, WTF? There was never any question that Carson’s photo-op trip to Jordan might provide him with some actual insight that would change his perspective. He’s obviously a guy who doesn’t do that once he’s made up his mind. But can he really not get his story any straighter than this? Which is it, Ben? Are these camps really quite nice or are they a bleak hellhole of freezing desert? Inquiring minds want to know.

  • No, Marco Rubio Has Not “Killed” Obamacare


    From “Team Marco” on Twitter:

    Q: Did Marco Kill Obamacare?

    A: You bet he did.

    Congratulations, senator! I hadn’t heard this, and of course I’m devastated. But this should certainly lock up the Republican nomination for—

    Hmmm? What’s that? This is a wee bit exaggerated? Here’s the story: Obamacare includes a program called “risk corridors” that’s designed to smooth out insurance company profits during the first few years of the program, when everyone is still trying to figure how to price their plans. The key element is that companies that make less than a certain amount will be compensated. Nicholas Bagley picks up the story from there:

    The Obama administration soon came to recognize that the risk corridor program contained a serious flaw: the ACA didn’t appropriate any money to fund it….At Rubio’s insistence, Congress in 2014 passed a budget bill prohibiting the administration from using other funding streams—the budgetary equivalent of looking under the couch cushions for change—to make up for any shortfall.

    Rubio’s bill has now come back to bite the administration. On October 1, HHS announced that, for 2014, health plans were owed substantially more under the risk corridor program than they paid in. Unprofitable plans will thus receive just 12.6% of what they were supposed to.

    The administration hopes to make it up to these health plans…But there’s another option, one that hasn’t received much attention. When Congress creates an entitlement directly in legislation, the person who’s supposed to get the entitlement can file a lawsuit in the Court of Federal Claims to recover what she’s owed….The same principle holds (1) where Congress vests a federal agency with the power to obligate the United States to make certain payments and (2) the agency welches on those obligations. Here, the ACA instructs HHS to create a risk corridor program requiring the government to pay health plans a given amount of money. If the past is any guide, plans should be able to sue if HHS doesn’t pay them in accordance with the program. That’s so whether or not Congress has appropriated money to fund the program.

    ….That’s small consolation to the co-ops that needed risk corridor payments now to stay afloat. But the question for health plans isn’t whether they’ll get paid. It’s when. Marco Rubio hasn’t killed Obamacare and he hasn’t saved taxpayers any money. All he’s done is throw a wrench in the works.

    A wrench is a wrench, I suppose. Republicans are fanatically opposed to poor and working-class folks getting decent health care, so anything that helps the cause should be welcome on the campaign trail—especially among the GOP’s elderly supporters, who already get government health care.

    Elsewhere, Mitch McConnell is going after the really poor by promising to use reconciliation to repeal Obamacare’s Medicaid expansion. Apparently this is making some Republicans nervous, since it means taking away a benefit from their own constituents, but Ol’ Mitch says they shouldn’t worry: Obama will just veto the bill anyway. You’d almost think Congress didn’t have anything useful to do judging by the GOP’s attachment to an endless stream of symbolic legislation. Do these guys really believe that extracting a presidential veto is some kind of historic victory or something?