Archives for category: Economy

Governor Greg Abbott of Texas and a bevy of rightwing commentators blamed wind turbines, which supply 10% of the state’s energy, and “the Green New Deal, which doesn’t exist, for the failure of the state’s power supply. He learned “the Big Lie” from his hero Trump.

As millions of people across Texas struggled to stay warm Tuesday amid massive cold-weather power outages, Gov. Greg Abbott (R) directed his ire at one particular failure in the state’s independent energy grid: frozen wind turbines.


“This shows how the Green New Deal would be a deadly deal for the United States of America,” Abbott said to host Sean Hannity on Tuesday. “Our wind and our solar got shut down, and they were collectively more than 10 percent of our power grid, and that thrust Texas into a situation where it was lacking power on a statewide basis. … It just shows that fossil fuel is necessary.”


The governor’s arguments were contradicted by his own energy department, which outlined how most of Texas’s energy losses came from failures to winterize the power-generating systems, including fossil fuel pipelines, The Washington Post’s Will Englund reported. But Abbott’s debunked claims were echoed by other conservatives this week who have repeatedly blamed clean energy sources for the outages crippling the southern U.S.


[The Texas grid got crushed because its operators didn’t see the need to prepare for cold weather]


In fact, typically mild winters and a lack of state regulations in Texas combined to leave electricity providers unprepared for the extreme cold that has suddenly hit the state, The Post reported. Nearly every source of energy — from wind turbines to natural gas to nuclear power — have failed to some degree following a harsh storm that covered the region with thick layers of snow and ice.
Although renewable energy sources did partially fail, they only contributed to 13 percent of the power outages, while providing about a quarter of the state’s energy in winter. Thermal sources, including coal, gas and nuclear, lost almost twice as many gigawatts of power because of the cold, according to the Electric Reliability Council of Texas (ERCOT), the state’s electric grid operator.

Critics have also noted that wind turbines can operate in climates as cold as Greenland if they’re properly prepared for the weather.


Despite the much larger dip in energy from fossil fuels, Republican politicians have seized on the outages to attack the Green New Deal and Democrats’ push to address climate change by reducing the consumption of fossil fuels.


In his Fox News interview, Abbott did not address the fact that most of the state’s power comes from fossil fuels and that ERCOT had planned to produce far more power from natural gas than became available as the cold set in, contributing a stunning deficit amid the freezing weather. On Tuesday, Abbott called for a state investigation into ERCOT’s failings, saying the agency had been “anything but reliable” following the winter storm.


Abbott’s office did not immediately respond to a request for comment late Tuesday.
The governor was not the only prominent Texas Republican to blame clean energy for the historic power outages. After Fox News host Tucker Carlson inaccurately told viewers that the state’s power grid had become “totally reliant on windmills,” former Texas Gov. Rick Perry, who served as energy secretary under President Donald Trump, joined Carlson in railing against the Green New Deal, which has not been enacted in Texas or nationally.


“If this Green New Deal goes forward the way that the Biden administration appears to want it to, then we’ll have more events like we’ve had in Texas all across the country,” Perry said in another Fox News segment.


Rep. Dan Crenshaw (R-Tex.) shared a detailed accounting on Twitter of how the state’s power grid failed, noted the roles that natural gas and nuclear power played — but also used the moment to attack wind turbines on Tuesday.


“Bottom line: Thank God for baseload energy made up of fossil fuels,” Crenshaw tweeted. “Had our grid been more reliant on the wind turbines that froze, the outages would have been much worse.”


Rep. Alexandria Ocasio-Cortez (D-N.Y.), who has been a strong proponent of the Green New Deal proposal, slammed Texas Republicans early Wednesday.
“The infrastructure failures in Texas are quite literally what happens when you don’t pursue a Green New Deal,” she said in a tweet.


Texas Democrats also criticized Abbott in a statement Monday, calling out Republican leaders for allowing the power to go out in the state that produces the most energy in the nation.
“If we had a governor open to alternative sources of energy, Texas might be in a situation in which we have energy reserves to efficiently power our state, instead of the reckless leadership we have witnessed time and time again from Greg Abbott,” the Texas Democrats said.


Wind turbines are working very well in far colder climates. Abbott probably outsourced the state’s energy needs to profit-seeking entrepreneurs who cut corners to make more money.

In another article in the Washington Post, the blame is placed where it belongs: on short-sighted politicians who didn’t plan for a worst-case scenarios.

When it gets really cold, it can be hard to produce electricity, as customers in Texas and neighboring states are finding out. But it’s not impossible. Operators in Alaska, Canada, Maine, Norway and Siberia do it all the time.


What has sent Texas reeling is not an engineering problem, nor is it the frozen wind turbines blamed by prominent Republicans. It is a financial structure for power generation that offers no incentives to power plant operators to prepare for winter. In the name of deregulation and free markets, critics say, Texas has created an electric grid that puts an emphasis on cheap prices over reliable service.


It’s a “Wild West market design based only on short-run prices,” said Matt Breidert, a portfolio manager at a firm called Ecofin.


And yet the temporary train wreck of that market Monday and Tuesday has seen the wholesale price of electricity in Houston go from $22 a megawatt-hour to about $9,000. Meanwhile, 4 million Texas households have been without power.


One utility company, Griddy, which sells power at wholesale rates to retail customers without locking in a price in advance, told its patrons Tuesday to find another provider before they get socked with tremendous bills.


The widespread failure in Texas and, to a lesser extent, Oklahoma and Louisiana in the face of a winter cold snap shines a light on what some see as the derelict state of America’s power infrastructure, a mirror reflection of the chaos that struck California last summer.


Edward Hirs, an energy fellow at the University of Houston, said the disinvestment in electricity production reminds him of the last years of the Soviet Union, or of the oil sector today in Venezuela.
“They hate it when I say that,” he said.

As someone who graduated high school in 1956, this film reminds me of the world I grew up in.

The office of Senator Bernie Sanders released the following statement about President-Elect Biden’s coronavirus relief plan:

BURLINGTON, January 14 — Sen. Bernie Sanders (I-Vt.) issued the following statement regarding President-Elect Biden’s plan to tackle the COVID-19 pandemic and economic crisis:

“President-Elect Biden has put forth a very strong first installment of an emergency relief plan that will begin to provide desperately needed assistance to tens of millions of working families facing economic hardship during the pandemic. The president-elect’s COVID-relief plan includes many initiatives that the American people want and need, including increasing the $600 direct payments to $2,000, and raising the minimum wage to $15 an hour. As the incoming Chairman of the Senate Budget Committee, I look forward to working with the president-elect and my colleagues in Congress to provide bold emergency relief to the American people as soon as possible.”

President-Elect Joe Biden released his comprehensive plan to control the pandemic and help the economy, families, students, and schools. The attached PDF has the full plan. This is the section that pertains directly to schools.


Provide schools the resources they need to reopen safely. 


A critical plank of President-elect Biden’s COVID-19 plan is to safely reopen schools as soon as possible – so kids and educators can get back in class and parents can go back to work. This will require immediate, urgent action by Congress. The COVID-19 pandemic created unprecedented challenges for K-12 schools and institutions of higher education, and the students and parents they serve. School closures have disproportionately impacted the learning of Black and Hispanic students, as well as students with disabilities and English language learners. While the December down payment for schools and higher education institutions was a start, it is not sufficient to address the crisis. President-elect Biden is calling on Congress to provide $170 billion — supplemented by additional state and local relief resources — for K-12 schools and institutions of higher education. These resources will help schools serve all students, no matter where they are learning, and help achieve President-elect Biden’s goal to open the majority of K-8 schools within the first 100 days of his Administration. 

● Provide $130 billion to help schools to safely reopen. Schools need flexible resources to safely reopen and operate and/or facilitate remote learning. The president-elect’s plan will provide $130 billion to support schools in safely reopening. These funds can be used to reduce class sizes and modify spaces so students and teachers can socially distance; improve ventilation; hire more janitors and implement mitigation measures; provide personal protective equipment; ensure every school has access to a nurse; increase transportation capacity to facilitate social distancing on the bus; hire counselors to support
students as they transition back to the classroom; close the digital divide that is exacerbating inequities during the pandemic; provide summer school or other support for students that will help make up lost learning time this year; create and expand community schools; and cover other costs needed to support safely reopening and support students. These funds will also include provisions to ensure states adequately fund education and protect students in low-income communities that have been hardest hit by COVID-19. Districts must ensure that funds are used to not only reopen schools, but also to meet students’ academic, mental health and social, and emotional needs in response to COVID-19, (e.g. through extended learning time, tutoring, and counselors), wherever they are learning. Funding can be used to prevent cuts to state pre-k programs. A portion of funding will be reserved for a COVID-19 Educational Equity Challenge Grant, which will support state, local and tribal governments in partnering with teachers, parents, and other stakeholders to advance equity- and evidence-based policies to respond to COVID-related educational challenges and give all students the support they need to succeed. In addition to this funding, schools will be able to access FEMA Disaster Relief Fund resources to get reimbursed for certain COVID-19 related expenses and will receive support to implement regular testing protocols.

 ● Expand the Higher Education Emergency Relief Fund. The president-elect’s plan will ensure colleges have critical resources to implement public health protocols, execute distance learning plans, and provide emergency grants to students in need. This $35 billion in funding will be directed to public institutions, including community colleges, as well as, public and private Historically Black Colleges and Universities and other Minority Serving Institutions. This funding will provide millions of students up to an additional $1,700 in financial assistance from their college. 

● Hardest Hit Education Fund. Provide $5 billion in funds for governors to use to support educational programs and the learning needs of students significantly impacted by COVID-19, whether K-12, higher education, or early childhood education programs.

Read the full pdf here.

The American Prospect has advice for Joe Biden about how he can make dramatic changes on Day One.

Pick your topic: Corporate taxes, the War on Terror, student debt.

Everything is here except for what he can do on Day One to help American education. He can end the Reign of Error of NCLB, Race to the Top, Every Student Succeeds Act, and Common Core. On Day One, he could waive all federal testing mandates for 2021. That would be a start.

Farhad Manjoo is an opinion writer for the New York Times. In this column, he says that the wealth of American billionaires has grown dramatically during the pandemic. We know that millions of Americans are facing hunger, poverty, and evictions. Inequality is expanding.

He writes:

When I called up Chuck Collins on Tuesday afternoon, I found him glued to one of the grimmest new metrics documenting America’s economic and social unraveling.

Collins is a scholar of inequality at the Institute for Policy Studies, a progressive think tank, and since March he has been tracking how the collective wealth of American billionaires has been affected by the coronavirus pandemic. In previous recessions, Collins said, billionaires were hit along with the rest of us; it took almost three years for Forbes’s 400 richest people to recover losses incurred in 2008’s Great Recession.

But in the coronavirus recession of 2020, most billionaires have not lost their shirts. Instead, they’ve put on bejeweled overcoats and gloves made of spun gold — that is, they’ve gotten richer than ever before.

On Tuesday, as the stock market soared to a record, Collins was watching the billionaires cross a depressing threshold: $1 trillion.

That is the amount of new wealth American billionaires have amassed since March, at the start of the devastating lockdowns that state and local governments imposed to curb the pandemic.

On March 18, according to a report Collins and his colleagues published last week, America’s 614 billionaires were worth a combined $2.95 trillion. When the markets closed on Tuesday, there were 650 billionaires and their combined wealth was now close to $4 trillion. In the worst economic crisis since the 1930s, American billionaires’ wealth grew by a third.

It is difficult to think of a more succinctly obscene illustration of the unfairness of the American economic and political system.

“The economy is now wired ‘heads you win, tails I lose,’ to funnel wealth to the top,” Collins told me.

Billionaires amassed their new billions just as millions of other Americans plunged into dire financial straits. More than 20 million people lost their jobs at the start of the pandemic. As Congress lazily contemplates whether or not to bother to continue to provide economic assistance to America’s neediest, as many as 13 million people are at risk of losing the expanded benefits that keep them just beyond the grip of hunger and homelessness.

Food banks across the country are bracing for another surge in demand. If a federal moratorium on evictions is allowed to expire at the end of the year, millions of Americans will have to pay months of back rent — making them vulnerable to what housing advocates warn will be a wave of evictions.

Why are American billionaires doing so well while so many other Americans suffer? Part of the story is garden-variety American inequality. Stocks are overwhelmingly owned by the wealthy, and the stock market has recovered from its early-pandemic depths much more quickly than other parts of the economy.

But some billionaires are also benefiting from economic and technological trends that were accelerated by the pandemic. Among these are the owners and investors of retail giants like Amazon, Walmart, Target, Dollar Tree and Dollar Generalwhich have reported huge profits this year while many of their smaller competitors were clobbered as the coronavirus spread.

Then there are companies that have bet on the rapid digitization of everything. Eric Yuan, the chief executive of Zoom, became a billionaire in 2019. Now he is worth almost $20 billion. Apoorva Mehta, the founder of the grocery-delivery company Instacart, was not a billionaire last year; this year, after a spike in orders that led to a new round of investment that pumped up the value of his company, he’s safely in the club. Dan Gilbert, the chairman of Quicken Loans, was worth less than $7 billion in March; now he commands more than $43 billion.

But like in the rest of the economy, there is a great deal of stratification even among billionaires — richer billionaires got even richer in 2020 than the poorer ones did.

Some of the numbers are staggering. Jeff Bezos, Amazon’s founder, was worth about $113 billion at the start of the pandemic. Now he is worth $182 billion — an increase of about $69 billion. Jim, Alice and Rob Walton, three of the largest shareholders of Walmart, saw their combined wealth grow by $47 billion during the pandemic.

This is a good time to urge you to read The Spirit Level: Why Greater Equality Makes Societies Stronger.

The more equal societies are, the happier they are. We are sinking into an abyss of anger, hopelessness, envy, and despair.

As always, David Dayen of the American Prospect is a good guide to the inner world of Washington, D.C., politics.

In this post, he explains what’s happening during the lame duck session of Congress. As you will learn, Mitch McConnell is calling the shots. He doesn’t care what Trump wants; he is history.

Dana Milbank is a regular writer for the Washington Post. He writes in this column about Mitch McConnell’s hypocrisy.

The Trump administration and House Democratic leaders are in striking range of a deal to send $1,200 stimulus checks to American families and to pump $2 trillion into the flagging economy.

But Rich Mitch is having none of it.

As The Post reported, Senate Majority Leader Mitch McConnell (Ky.) — anti-Trump Republicans have taken to calling him “Rich Mitch” because of his $34 million net worth — told Republican colleagues Tuesday that he had warned the White House not to strike an agreement with House Speaker Nancy Pelosi (D-Calif.) on a coronavirus relief package before the Nov. 3 election.

Who cares if tens of millions of Americans are in increasingly desperate straits? Even if negotiators reach agreement despite McConnell’s sabotage, he refused to commit to voting on it before the election.

Then, on Wednesday, McConnell had the chutzpah to stand on the Senate floor and claim he was looking out for the little guy. “Maybe coastal elites who can practically find a million dollars in their couch cushions are indifferent about whether we get an outcome here,” he said, alleging that “blue-state billionaires” are Democrats’ top priority — not “working families like the Kentuckians I represent.

Yet McConnell claims he’s fighting elites to “get an outcome” for working families. What outcome? Bankruptcy?

It’s a timely reminder, a dozen days before Election Day, that removing President Trump won’t repair dysfunction in Washington as long as McConnell remains in charge of the Senate.

Peter Franchot, the State Comptroller of Maryland, wrote in the Washington Post that many small businesses are failing and need government aid to survive. Main Street, he warns, is at risk of turning into a ghost town.

He wrote:

The scene on Main Street America is bleak.

Darkened storefronts adorned with “Closed” and “For Lease” signs have become common sights in both urban and rural areas.

Maryland is no exception. From my hometown in Takoma Park to the bucolic charm of Chestertown, many businesses have shuttered or are hanging on for dear life.

But wait! Didn’t the first and only bailout include $660 billion to rescue small businesses? It was administered by the Small Business Administration. What happened to the money?

Thanks to ProPublica, there is a link to a search engine to see where the money went. You will be surprised to see that billions went to religious organizations, private schools, and charter schools.

In the search engine, type in “religious organizations.” You will see that federal aid went to churches and synagogues representing a wide variety of sects. One of the largest grants–$5-10 million–went to Joyce Meyer Ministries. I scanned the site and noticed that her educational background consists of three honorary doctorates from religious institutions of higher education. She is a “charismatic Christian” who spreads the gospel. Is her ministry worthier and needier than hardware stores, restaurants, and other Main Street businesses? I don’t object to Mrs. Meyer, but I do object to federal aid for religious groups.

What happened to separation of church and state? Why was the Trump administration dispensing millions to religious groups while small businesses were teetering on the brink of bankruptcy? When did it become the role of the federal government to bail out churches, synagogues, religious schools, and religious organizations?

Kendall Deas, a political scientist at the College of Charleston in South Carolina, has worked in the field of economic evelopment. In a recent article, he warned the leaders of the state that investing in food schools will do more for the state than corporate tax breaks.

He is responding to a recent study by @GoodJobsFirst showing that South Carolina had cut education by $423 million to subsidize corporations.

Deas begins:

When I was in graduate school I worked for an economic development group that recruited companies to the metro Atlanta area. And time and again when executives would visit, this question would be among the first they’d ask:

“How good are the schools?”

It was very clear to me then that the quality of schools matters a great deal when it comes to attracting investment and jobs.

I’m now back in my native South Carolina where I am an educator and advocate for public education. And I am concerned about the subpar, uneven quality of our state’s public schools.; U.S. News and World Report, for example, ranks South Carolina’s schools No. 43 among the 50 states.

The state’s “Corridor of Shame.” a nickname given to a string of rural, impoverished and poor-performing school districts along South Carolina’s Interstate 95 corridor, serves as a stark reminder that much work needs to be done to improve our national standing in education.

This region of the state, with flat farmland and remnants of industries that have relocated overseas, needs to attract jobs — and it also needs employers who want to invest in our future. But by disinvesting in their school systems many South Carolina counties are undermining their ability to compete.

To revitalize these economies we need to invest in traditional public schools — yet this need to improve the quality of our public education system is too often ignored by state political leadership.

We have growth in some areas. And when jobs grow, people move in — and that means more families with school-age children. But then we abate the companies’ taxes, which puts stress on the tax base we need to keep our schools modern and healthy.

A SEVERE PROBLEM

Until now we did not know how severe this disinvestment has become.

Under state law counties award massive economic subsidies and tax incentives — even though school districts lose the most revenue. Last year these corporate tax breaks cost South Carolina public schools $423 million, an astonishing increase of $99 million from FY 2017.

This fact was revealed recently by Good Jobs First — a nonprofit think tank — along with the South Carolina Education Association; they found that millions in property tax abatements have been granted to companies like Boeing, BMW, Volvo, Amazon and dozens of other businesses operating in the state.

The biggest aggregate losers were Berkeley County ($54 million) and Greenville County ($41 million); meanwhile, poorer counties such as Orangeburg, Dorchester, Calhoun, Greenwood and Barnwell lost more than $2,000 per pupil.

Good schools attract good jobs.