The Obama economic recovery plan makes a bold investment in the modernization of our electricity infrastructure, in order to transform an often-overwhelmed patchwork of balkanized regional networks into a national “smart grid” based on Internet-like technology. Without a smart grid, the goal of independence from fossil fuels is impossible to reach. Repower America, Al Gore’s campaign to have America use 100% renewable electricity in ten years, explains that a national smart grid “will save money, increase reliability and protect consumers from outages, and make possible a clean electricity system.”
Building a smart grid requires both new technology and regulatory policy. In addition to a $20 billion investment in smart grid deployment, the recovery plan offers $2 billion in grants to promote a subtle but key shift in electric utility regulatory policy:
Policies that ensure that a utility’s recovery of prudent fixed costs of service is timely and independent of its retail sales, without in the process shifting prudent costs from variable to fixed charges.
Translating for normal people, electric utilities traditionally make higher profits when they sell more electricity to consumers. The key problem is that this discourages utilities from promoting conservation and efficiency — instead, the more wasteful their consumers are, the better. So demand goes up, utilities build new, expensive, and polluting power plants, and still costs rise. Utility shareholders’ interests are pitted against the rest of society.
Therefore, several states have implemented policies that decouple profitability (”recovery of prudent fixed costs of service”) from demand (”retail sales”), by using public funds and rate adjustments to guarantee an expected annual profit for the utility company and to subsidize investment in energy efficiency.
Obama’s economic recovery package contains $2 billion in state-level block grants that will be released “only if the governor of the recipient State notifies the Secretary of Energy that the governor will seek, to the extent of his or her authority, to ensure” that decoupling and energy efficiency incentive programs will occur.
Because our electrical infrastructure is a vital public resource, the profits of utility executives and shareholders must not be put above the public good. As Public Citizen warns, decoupling for unregulated utilities can lead to “windfall profits for the industry.” The California electricity debacle exposed the great failure of the experiment of utility deregulation, and the recovery package does not go far enough to bring utilities back under control.
As President Obama, Secretary of Energy Steven Chu, and legislators like Sen. Jeff Bingaman (D-NM) recognize, our entire nation needs to move to a low-carbon economy as rapidly as possible. That means modernizing our grid through both new technology and new regulatory policy. The economic recovery plan includes crucial language to allow that to happen.
Full decoupling language in the House-passed economic recovery package (HR 1): More »
Tzipi Livni and Binyamin Netanyahu, partners for peace:
Likud Party Chairman Benjamin Netanyahu on Thursday said he would not be bound by Prime Minister Ehud Olmert’s commitments to evacuate West Bank settlements and withdraw from the territories.
“I will not keep Olmert’s commitments to withdraw and I won’t evacuate settlements. Those understandings are invalid and unimportant,” Netanyahu said.[...]
After Netanyahu and senior Likud officials blasted Olmert and Livni’s “promises” and accused Livni of agreeing to divide Jerusalem, she was forced to disassociate herself from the understandings.
“I will advance only an agreement that represents our interests. Maintaining maximum settlers and places that we hold dear such as Jerusalem — not a single refugee will enter,” Livni said. [...]
[Netanyahu] said he would invite Kadima and all the Zionist parties to join his coalition providing they agree to his guidelines — no division of Jerusalem, no return to 1967 borders.
When leaders of competing Palestinian factions make maximalist claims to appeal to hardline constituencies, it’s extremism. But when Israeli leaders do it, it’s politics. If the goal of the U.S. and Israel is to strengthen Palestinian moderates like Abu Mazen against Hamas — and people keep telling me that’s the goal — it’s hard to see how this helps.
According to TPMDC, “the fight to add mass transit money to the stimulus bill is far from over“:
Senate Democratic Vice Chairman Chuck Schumer (NY) just mentioned on a conference call with reporters that he’ll be introducing a version of Rep. Jerrold Nadler’s (D-NY) amendment to add $3 billion in public transportation cash to the economic recovery pot.
While this would be a solid addition to the stimulus — bringing the total amount dedicated to transit to more than $15 billion — there would still be only “half as much money for mass transit as for highways.” This is a terrible ratio, as we’ve noted at The Wonk Room before.
The stimulus needs to provide a boost to the economy, but not at the expense of creating urban sprawl and encouraging more gas-guzzling driving habits. A concurrent goal to economic stimulus is working towards a green economy, and thus, as Matthew Yglesias wrote, “insofar as some of the highway projects envisioned in the bill can’t fit within the two-year stimulus window, we ought to drop the projects.”
Reporting on the atmosphere in Iraq before tomorrow’s important provincial elections — “perhaps the most competitive election in the country’s history” — Anthony Shadid cautions that they “are by no means a panacea.”
In some ways, they have revealed a landscape perhaps more precarious than the one the United States inherited in 2003. Tribes, with archaic traditions, have become kingmakers, and Islamist parties, despite their unpopularity, have proved a singular ability to mobilize resources and followers. Some worry about the onset of warlords. Others worry about the Kurdish-Arab frontier, where borders with an autonomous Kurdish region have yet to be drawn. In the province around the disputed city of Kirkuk, the vote has been postponed indefinitely.
As Brian Katulis, Marc Lynch and Peter Juul wrote in Iraq’s Political Transition After the Surge, Iraq’s political factions remain at loggerheads over key aspects of the Iraqi state, centralism vs. federalism, sectarianism vs. secularism. We should not expect tomorrow’s elections to provide answers as much as clarify the questions.
The International Crisis Group also has a typically excellent report examining the major issues at play. While recognizing that “the elections inevitably will have severe shortcomings,” ICG notes that they “mark a remarkable transition.”
In the past four years, politics have evolved from a violent conflict focused largely on the capital to an essentially democratic contest over positions and institutions, including at the local level. Former confessional blocs are fraying, as sectarianism is increasingly challenged by more nationalist sentiment and promises of better governance by political actors seeking to capture the public mood. Competition between communities is joined by competition within them. Violence persists in Baghdad and elsewhere, often fierce and ruthless; the past few weeks alone have witnessed incidents -– targeted killings, bombings and intimidation –- that in one way or another are designed to influence the vote. But, for now at least, virtually all major players, including those that boycotted the polls in 2005, have accepted the principle of elections and fully thrown themselves into electoral battle.
In our recent report, The Fractured Shia of Iraq, Peter Juul and I described some of the fault lines within Iraq’s Shia religious community, and how, as with Iraq’s various factions more generally, the elections could significantly redraw these lines.
While it’s important not to grant any credence to the conservative argument that the improved security conditions in Iraq represent a vindication of George W. Bush’s Iraq policy — there is no remotely plausible moral or political calculus by which the costs, human and otherwise, of this war do not far outweigh its benefits — it’s also important to recognize the significance of Iraq’s new politics, both for Iraqis themselves and potentially for the future of the United States’ relationship with the region. The Obama administration faces serious challenges in the Middle East, many of them created or exacerbated by the Iraq war, but helping to facilitate the emergence of a stable and democratic Iraq is key to meeting those challenges.
When America’s Health Insurance Plans (AHIP) — the lobbying arm of the health insurance industry — released its health insurance plan late last year, the Wonk Room was quick to point out that while the health insurance industry has co-opted the language of universal coverage, they do not support major progressive proposals like community rating (a.k.a. everyone pays the same premium).
But today, at a roundtable with bloggers, Families USA president and CEO Ron Pollack — who has built some of the major ’strange bed fellow coalitions’ and has attended numerous meetings with the health insurance industry — suggested that the insurance industry is close to accepting community rating:
They’re pretty close to it…they know it’s not just guarantee issue, you have to deal with the premiums.
Despite her hearing having occurred on January 9, Rep. Hilda Solis (D-CA), President Barack Obama’s nominee for Labor Secretary, has yet to be confirmed by the Senate Health, Education, Labor and Pensions Committee. What’s the holdup? Senate Republicans are evidently burying her in paperwork:
The nomination of Rep. Hilda L. Solis, D-Calif., for Labor secretary has been lingering in the Senate as Republicans raise extra questions for her, effectively forestalling a confirmation vote…Although the written questionnaires don’t constitute an official hold on Solis’ nomination, the paperwork has the same delaying effect.
According to the White House, Solis has “responded to more than 15 sets of written questions from the committee,” but the committee “has taken no action on her appointment and has none scheduled.”
One issue with Solis’ confirmation seems to be her support for the Employee Free Choice Act, which Solis co-sponsored and voted for in the House in 2007. Much like their opposition to the auto rescue in December, blocking Solis may be nothing more than a conservative attempt to send a message on Employee Free Choice. As the New York Times editorial board wrote:
The delay in confirming Ms. Solis isn’t because the Senate needs to know more. It’s a way for Republican senators to score tough-guy points with business constituents who are driven to distraction by the thought of unions.
On Wednesday, the Senate Appropriations Committee voted to increase nuclear loan guarantees by $50 billion in the economic recovery package (S. 336). This staggering sum “would more than double the current loan guarantee cap of $38 billion” for “clean energy” technology:
TITLE 17—INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM
The Committee also recommends an additional $50,000,000,000 to support the deployment of eligible technologies under the Section 1702(b)(2) of EPACT 2005 that will contribute to transforming the energy sector. This funding will add to the existing loan guarantee authority provided in other appropriations bills to support self-financed loan guarantees. The Committee is aware of the strong interest in the program and the large number of pending applications.
In contrast, the committee allocated only $9.5 billion exclusively for “standard renewable energy projects.” Although the loan guarantee program covers nuclear technology, carbon capture and sequestration for coal plants, as well as renewable energy, the vast bulk of requested loans — $122 billion — are for new nuclear power plants. This $50 billion nuclear throwaway nearly matches the total allocation for genuinely clean energy in the House version of the stimulus package: only $52 billion in total for smart grid, renewable energy, and energy efficiency investments.
Unlike renewable energy and energy efficiency technology, investments in the nuclear industry generate few jobs or economic growth. The nuclear industry has developed through massive federal subsidization from research to deployment over decades. Such a massive expenditure of nuclear pork has no place in the economic recovery bill. Brent Blackwelder of Friends of the Earth, who discovered the nuclear pork, called the appropriations “unconscionable“:
Now is not the time for another bailout boondoggle. Nuclear power is the most expensive form of energy there is. It takes 10 years or more to build a reactor, so it is impossible to claim with a straight face that this preemptive bailout has anything to do with creating jobs. Senate appropriators’ decision to include such wasteful spending in the stimulus is an example of Washington at its worst.
A proposed $2 billion in manufacturing tax credits in the Finance Committee mark only applies to production of components for renewable energy, electric or hybrid-electric car storage systems, grid and efficiency components, carbon capture and storage equipment and renewable fuels. Sens. Tom Carper (D-Del.) and Mike Crapo (R-Idaho) are working to change the manufacturing tax incentive so that it is "technology neutral."
First comes efficiency, efficiency, efficiency and then comes renewables, and once you’ve tried everything else twice as hard as you ever thought possible, then and only then should you consider the the really expensive options that need a lot of technological advances, like nuclear and coal with carbon capture and storage.
Welcome to The WonkLine, a daily 10 a.m. roundup of the latest news about health care, the economy, national security and climate policy. This is what we’re reading. Tell us what you found in the comments section below.

In the Wall Street Journal, Rep. John Conyers (D-MI) advocates mortgage modification as “one of the most tangible and productive steps we can take to limit the fallout from the real-estate depression.”
The Economic Policy Institute writes that it’s “time to rescind wasteful business tax cuts” from the economic stimulus.
The Quick and the Ed makes the case for using education funding in the stimulus “for general K-12 purposes instead of restricting the funding for Title I, special education and career tech.”
The Washington Post reports on the assassinations of three Sunni Muslim political candidates in separate incidents, two days before Iraq holds its first elections in four years.
BBC reports that North Korea has said it’s scrapping all military and political agreements signed with South Korea, accusing it of hostile intent. North Korean media reported that the South has pushed relations “to the brink of a war.”
Richard Silverstein comments on the Davos dust-up between Israeli president Peres and Turkish prime minister Erdogan.
Saying “There’s a new sheriff in town,” Secretary of the Interior Ken Salazar “has asked the Justice Department to reopen criminal investigations of employees involved in a recent sex, drugs and financial favor scandal at the Minerals Management Service.”
Scientists report that glaciers worldwide shrank “as much as 3 meters” in 2007, “the 18th year of retreat and twice as fast as a decade ago“, due to global warming.
The Air Force on Thursday “dropped plans to build a coal-to-liquid plant to produce fuel for its aircraft” at the Malmstrom Air Force Base in Montana.
The Senate approved legislation yesterday “to provide health insurance to 11 million low-income children“; a provision subjecting most legal permanent residents to a five-year ban was overturned.
A study of Texas hospitals “found that the use of health IT significantly improves quality and efficiency“; for every 10-point increase in IT, there was a 15 percent decline in mortality rate for all conditions studied.
Yesterday, Rep. Henry Waxman (D-CA) called for health care reform in 2009: “This is our time, we need to move forward, we need to get this job accomplished this year.”
Yesterday, the House passed the American Recovery and Reinvestment Act on a 244-188 vote, with every Republican voting against the legislation. Now the bill passes to the Senate for debate and a potential vote next week.
The Senate version of the legislation is not entirely in sync with the House’s version. As McClatchy reported last week, the Senate Finance Committee has already “added some provisions desperately sought by corporate America“:
The Senate bill includes a pro-business tax provision called bonus depreciation, which would allow companies accelerated write-offs of existing equipment and inventory if they make new purchases. The Senate version also incorporates a complicated but important provision that the U.S. Chamber of Commerce and other business groups are pushing. This measure, which isn’t in the House bill, would allow some companies to reduce taxes if they buy down their debt between late 2008 and 2011.
Even with these extra business provisions — which conservatives have complained are absent from the House bill — 9 out of 10 Republicans on the Finance Committee voted against the draft.
Sen. Mitch McConnell (R-KY) said just few weeks ago that “I don’t think [the stimulus is] going to have any problem getting over 60 votes.” He also reportedly promised that Senate Republicans “would not filibuster against the stimulus package.” Will McConnell keep his word? Or will conservatives continue to deride the economic recovery while advocating a return to Bushonomics?
Our guest blogger is James Kvaal, Senior Fellow at the Center for American Progress Action Fund.
House Republicans claimed yesterday that their alternative economic recovery plan –- a Bush-like package of tax cuts — would create 6.2 million jobs. As Rep. John Boehner (R-OH) said during a press conference:
We have an analysis by the president’s senior economic adviser who also shows that tax cuts actually provide more immediate relief and more jobs than spending, so you get more — a bigger bang for the buck. Well, using the methods and economic models developed by the president’s top adviser — and when those are applied to our Republican plan, it shows the Republican plan could create as many as 6.2 million jobs over the next two years.
House Republicans proceeded to all vote against President Barack Obama’s American Recovery and Reinvestment Act. But in claiming support from Obama economic advisor Christina Romer, they misapplied her past work and ignored her more recent and relevant work.
The Republican statement cites a 2007 paper by Romer on the economic benefits of tax cuts. But as noted across the blogosphere, Romer’s conclusion was that the economic environment complicates the assessment of policy changes, not that tax cuts are the most effective way to create jobs:
What Romer and Romer’s study (and their earlier work on monetary policy) shows is not that tax cuts are uniquely effective, but rather that failing to consider the reasons for policy changes leads to underestimates of the effects of all types of stimulus.
A more recent paper Romer coauthored concluded that government investment create more jobs than tax cuts. As this table that Romer and Jared Bernstein compiled shows, government spending has a stronger multiplier effect, and is therefore stronger stimulus:
As Reagan advisor Martin Feldstein wrote, “While good tax policy can contribute to ending the recession, the heavy lifting will have to be done by increased government spending.” Mark Zandi, chief economist at Moody’s Economy.com recently explained why: though tax cuts act more quickly, they “do not have the same economic bang for the buck as increased government spending, as households will save some of the tax cuts or use them to repay debt, and purchase imported goods.”
Pointing to the absence of “soaring poetry” in Barack Obama’s inaugural address and the President’s shocking statement to Al Arabiya that “we seek a new way forward, based on mutual interest and mutual respect” with the Muslim world, Fouad Ajami laments the “return to realpolitik and business as usual in America’s encounter with that Greater Middle East.”
Say what you will about the style — and practice — of the Bush years, the autocracies were on notice for the first five or six years of George. W. Bush’s presidency. America had toppled Taliban rule and the tyranny of Saddam Hussein; it had frightened the Libyan ruler that a similar fate lay in store for him. It was not sweet persuasion that drove Syria out of Lebanon in 2005. That dominion of plunder and terror was given up under duress.
True, Mr. Bush’s diplomacy of freedom fizzled out in the last two years of his presidency, and the autocracies in the Greater Middle East came to a conviction that the storm had passed them by and that they had been spared.[...]
Where Mr. Bush had seen the connection between the autocratic ways in Muslim lands and the culture of terror that infected the young foot soldiers of radicalism, Mr. Obama seems ready to split the difference with their rulers.
Yes, maybe Bush’s policies were an abject failure, and Middle East autocracies strengthened as a result, but hey, for a minute there Bush put those autocracies on notice (Here’s Bush putting Saudi Crown Prince Abdullah on notice back in April 2005, holding hands as they stroll around the ranch.) This is all delusive nonsense, but its unsurprising delusive nonsense. After all, Ajami was bemoaning the heartless realpolitik of the Obama administration even before the Obama administration had begun. Even though Obama’s inaugural address contained an explicit attack on authoritarianism, Ajami has chosen to interpret the new president’s lack of enthusiasm for invading more Arab countries and killing vast numbers of their inhabitants in the name of democracy as evidence of a troubling “realism.”
Like most of his neoconservatives comrades, realism is clearly not, in any sense, something Fouad Ajami is troubled by, as evidenced by his continuing inability to grasp that, while Bush’s words about the need for democracy in the Middle East may have been nice to listen to, his actual plans for promoting democracy the Middle East were staggeringly dumb. Bush’s “freedom agenda” proved hollow because that agenda also included kidnapping, torture, indefinite detention, invading and occupying foreign countries, enabling a sectarian civil war in which hundreds of thousands were killed and maimed and several millions displaced, all of which contributed to previously unseen levels of anti-Americanism while further empowering some of the most conservative, undemocratic forces in the region. It was not out of a loss of nerve, but out of a need to contain those forces that Bush unceremoniously discarded the freedom agenda. But expect Ajami to continue arguing that neoconservatism didn’t fail, it’s just never been tried.
As for Obama’s foreign policy, there’s no evidence thus far that President Obama plans anything like the global withdrawal that Ajami projects. As the ThinkProgress team showed in yesterday’s Progress Report, every indication is that Obama intends to strengthen America’s global leadership role, though with greater emphasis on responsible governance and less emphasis on invading and occupying foreign countries.
In light of Ajami’s disdain for the pragmatic new direction of U.S. foreign policy, however, I think it’s useful to consider — again — something Ajami wrote in his most popular work, 1998’s Dream Palace of the Arabs, his critical examination of the worldview of modern Arab intellectual elites:
In an Arab political history littered with thwarted dreams, little honor would be extended to pragmatists who knew the limits of what could and could not be done. The political culture of nationalism reserved its approval for those who led ruinous campaigns in pursuit of impossible quests.
What a difference a decade makes.
Welcome to The WonkLine, a daily 10 a.m. roundup of the latest news about health care, the economy, national security and climate policy. This is what we’re reading. Tell us what you found in the comments section below.

The wind industry now employs more people than coal mining in the United States.
Duke University scientists found that “the sludge from the Kingston Fossil Plant fly ash spill contains radium and arsenic at levels high enough to affect human health.”
“We need the world to put a price on carbon,” BP chief executive Tony Hayward told assembled leaders today at the World Economic Forum in Davos, Switzerland.
Marc Lynch looks at “the institutional pushback against Obama’s attempt to change Iraq policy,” specifically Gen. Odierno’s moves to slow play the Iraq withdrawal.
Danger Room’s David Hambling looks at reports of civilian casualties in Gaza, and the various Israeli weapons which may have caused them.
Mexico’s biggest drug bosses may have declared a truce in Mexico’s deadly drug war, which has killed almost 7,000 people since January 2007.
“Despite crippling losses, multibillion-dollar bailouts and the passing of some of the most prominent names in the business,” Wall St. employees collected $18.4 billion in bonuses in 2008.
According to a study by the National Council on Teacher Quality, “States are not doing what it takes to keep good teachers and remove bad ones.”
The International Monetary Fund warned that governments “must adopt more aggressive crisis-fighting measures to prevent the wounded financial system and the stalled economy from feeding on one another.”
The Washington Post reports that without health-care reform, “most Americans can expect to pay health insurance premiums that will double by 2016.”
NPR reports on how the stimulus package can get the uninsured to use COBRA coverage, which is “often the best health insurance available.”
Urban and rural Democrats are wrestling over how to divvy up $87 billion in Medicaid funding, according to The Wall Street Journal.
During an interview with the Deseret News editorial board, President Bush’s Health and Human Services Secretary Mike Leavitt appeared to distance himself from the Republican alternative to universal health reform — consumer driven health care. While it’s unclear if Leavitt was endorsing an Obama-like proposal, Leavitt’s suggestion that the government — and not just the free market — has a role to play in providing affordable coverage seems to rebuke conservative campaign talking points:
“The solution isn’t to continue to keep doing what we did in the past,” he said. “The role of government needs to be worked out. Is it to own the system or organize the system?”
Leavitt said he foresees three possible outcomes for making comprehensive changes: incremental steps with expansions of health-care insurance for children and by expanding Medicare for seniors, the Big Bang change with details to be worked out later, the Big Bang carefully done.
The Wonk Room would like to congratulate Center for American Progress senior fellow Alice Madden, whom Colorado governor Bill Ritter today named as Colorado’s new climate-change coordinator. Alice served in the Colorado legislature since 2000 and was the House Majority Leader until she stepped down this month due to term limits.
Alice wrote engaging guest posts on the Wonk Room about Colorado’s unique energy and resource issues, from oil shale to water sharing.
We couldn’t agree more with Gov. Ritter’s sentiments:
Alice Madden has distinguished herself as one of Colorado’s most accomplished and talented public servants. Her thoughtfulness and problem-solving skills will be crucial as we strive to achieve the goals in Colorado’s Climate Action Plan and strengthen Colorado’s New Energy Economy. Expanding the use of wind, solar, geothermal and clean-burning natural gas will create jobs, clean the air and address climate change.
Over at GoozNews, Merrill Goozner flags an industry-sponsored effort to define President Obama’s comparative effectiveness research initiative. A coalition of groups who accept money from the pharmaceutical industry has sent a letter to Capitol Hill demanding “that any agencies conducting comparative effectiveness reviews be run ‘through an open and transparent process that allows for patients, providers and other stakeholders to participate equally in governance and input, starting from the research planning stage‘”:
The letter’s program is nothing less than an effort to strangle comparative effectiveness research in its cradle by giving industry the right to veto controversial inquiries and limit the scope of the research that gets done. Do publicly traded companies have a seat on the governing board of the Securities and Exchange Commission? Should we give Boeing and Airbus the right to determine the scope of the National Transportation Safety Board’s inquiry into airplane crashes? Does the current financial crisis suggest the banks should have more say over how they are regulated? Its simply bad governance to give industry a seat at the table that decides which comparative effective studies get done.
Comparative effectiveness research could save up to $700 billion annually in health spending by identifying treatments that do not produce the best medical outcomes and President Obama and Sen. Max Baucus (D-MT) want to establish an independent body that would be “responsible for setting national priorities” for head-to-head trials. But Big Pharma is seeking to define the process; an independent institute could cut into revenue for branded drugs and steer people towards more generic medications, lowering prices for consumers but cutting into industry profit.
Industry concerns aside, a comparative effectiveness institute must surely retain its independence, but generic drugs — which could certainly lower health care costs — are not without their pitfalls. As US News & World Report’s Heart To Health blog points out, “generics are far more likely to be made in factories in parts of the world like India that have cheap labor and overhead.”
According to a “scathing report issued by the Government Accountability Office in September foreign countries escape rigorous FDA inspection, documentation of their practices, and follow-up monitoring even when serious manufacturing or drug-handling problems have been identified. Worse, the GAO has identified these problems with FDA oversight in the past, and they have gone largely uncorrected—at the same time that outsourcing of generic drugs to Asia has been skyrocketing.”
Conservatives have been selecting one small provision after another to justify their opposition to the proposed economic stimulus package; one of the latest is a measure sending $50 million to the National Endowment for the Arts. On the House floor today, Rep. David Obey (D-WI) defended the provision. He noted that it represents a small sliver of the stimulus, which will keep local organizations and artists working, and that “we have an obligation to salvage as many jobs as we can” regardless of field:
People in the arts field are losing their jobs just like anybody else. You have local arts agencies, you have local orchestras, local symphonies, local arts groups of all kinds who are shutting down, laying people off and in a number of instances going bankrupt. This is a small, tiny effort to keep some of those people employed over the next two years. I make no apology for it. We have an obligation to salvage as many jobs as we can, regardless of the fields in which people work.
Watch it:
Anticipating Iraq’s provincial elections this Saturday, the Center for American Progress has released a report by Peter Juul and me, The Fractured Shia of Iraq. This report examines the ongoing competition among Iraq’s dominant Shia religious factions.
As they have done since 2005, religious Shia political parties are likely to shape Iraqi politics at all levels in central and southern Iraq. It remains to be seen which, if any, of these factions will dominate. The end of Saddam Hussein’s regime, followed by the 2005 election of a transitional government, opened a new political space for Iraq’s Shia, bringing Shia Arabs into power for the first time in the Arab world. This power shift represented a significant change for a Middle East previously neatly divided between the mostly Persian Shia of Iran and Sunni Arab-led states, unsettling regional politics, especially among those Sunni Arab nations with significant Shia minorities, including the Gulf States, Saudi Arabia, and Lebanon.
As Juul and I argue in the report, exploring the history of Iraqi Shia political-religious trends is necessary for understanding Iraq’s political future. Whether and how the points of contention among Iraq’s Shia parties, which mirror the divisions within Iraq more broadly, are resolved will significantly affect the Obama administration’s Middle East policy as it seeks to shift greater attention and resources eastward to Afghanistan and Pakistan. The U.S. troop surge in Iraq in 2007 and 2008 was intended to provide the political space for reconciliation among the Kurds and Sunni and Shia Arabs, but this remains elusive.
These elections are the first in a series of elections Iraq will have later this year, and may serve as a barometer of what’s to come. There are concerns about low voter turnout given that these elections fall close to a major Shia holiday. Early voting is going smoothly.
But Iraq faces a long road ahead in its political transition. Importantly, it may well be the struggle for power within the Shia community that determines how the United States exits Iraq. Importantly, it may well be the struggle for power within the Shia community that determines how the United States exits Iraq.
Responding to Republican criticism that expanding SCHIP eligibility to more low-income children would “crowd out” private coverage, Sen. Max Baucus (D-MT) suggested that rather than worrying about more children moving into a public plan, Republicans should focus on reforming private health insurance to insure that it is an affordable option for working class families:
The dilemma is to make sure people in our country have good public health insurance at premiums they can afford, benefits that make sense. The Children’s Health Insurance Program has good benefits and so clearly a mother whose income is quite low, would probably want her child to be enrolled in the Children’s Health Insurance Program. We have to bolster private health insurance in this country.
Watch it:
“We have to take-up health care reform this year, in this Congress,” Baucus said, “it’s so important.” In early November, Baucus released a set of principles for comprehensive health care reform designed to expand health care access and improve affordability.
One of the key components of any economic recovery package needs to be an investment in infrastructure. As Rep. Peter DeFazio (D-OR) said, “We want a recovery that’s solid and based in investment and productivity, and that points us at building things that will serve us decades to come.”
Underscoring how desperately needed infrastructure investment is, the American Society for Civil Engineers (ASCE) released a report today in which it “assigned an overall D grade to the nation’s infrastructure and estimated that it would take a $2.2 trillion investment…over the next five years to bring it into a state of good repair.” Some of the key grades and findings:
- Roads got a D-. Americans spend 4.2 billion hours stuck in traffic a year at a cost of $78.2 billion, or $710 for each motorist.
- Levees got a D-. Most of them are older than their designed lifespan and privately owned, with repair costs put at $100 billion.
- Water facilities, wastewater treatment, and waterways got a D-. Leaky pipes lose an estimated seven billion gallons of clean drinking water every day, while aging sewage systems send billions of gallons of untreated wastewater into waterways each year.
- Dams got a D. 4,000 dams were deemed deficient and half of those considered to have “high hazard potential.”
The ASCE also found that more than 25 percent of the nation’s bridges “are structurally deficient or functionally obsolete.” CleanTech has put together a map showing the extent of the bridge problem; each green dot signifies a bridge that is “structurally deficient“:

This parade of bad news illustrates just how necessary infrastructure investment is, economic woes aside. But the bonus is that these investments provide significant fiscal stimulus “bang for the buck,” with a return of $1.59 for every $1 spent. Of course, some infrastructure projects will take a while to get rolling — and stimulus dollars should not be spent on roads to nowhere — but given the extent of the nation’s economic problems and the jobs it would create, there’s no justification for not devoting a healthy dose of the stimulus towards them.
In testimony before the Senate Committee on Foreign Relations, Vice President Al Gore will call for “decisive action” to combat the climate crisis, including passage of President Obama’s economic recovery package, a cap-and-trade system, and an international climate treaty:
If Congress acts right away to pass President Obama’s Recovery package and then takes decisive action this year to institute a cap-and-trade system for CO2 emissions – as many of our states and many other countries have already done – the United States will regain its credibility and enter the Copenhagen treaty talks with a renewed authority to lead the world in shaping a fair and effective treaty. And this treaty must be negotiated this year.
Not next year. This year.
The hearing is being webcast live on C-SPAN.org. Below is the full text of former Vice President Al Gore’s testimony as prepared for delivery to the Senate Committee on Foreign Relations:
We are here today to talk about how we as Americans and how the United States of America as part of the global community should address the dangerous and growing threat of the climate crisis.
We have arrived at a moment of decision. Our home – Earth – is in grave danger. What is at risk of being destroyed is not the planet itself, of course, but the conditions that have made it hospitable for human beings.
Other countries have begun to act – and they have waited long enough for the United States to step up and do our part. We have a moral obligation to lead on this crucial issue and an economic imperative to ensure that the world’s next generation of energy solutions carry a Made-in-America label.

