Category Archives: Vintage

Obamacare is Working, and It Will Probably Continue to Work

Mother Jones

Tyler Cowen isn’t satisfied with current answers to the question of how well Obamacare is working. But although no one has firm answers to the questions he asks, I think we know more than he implies we do—especially when you widen your scope beyond just the details of the Obamacare transition over the next few years. Here are a few quick responses to his questions:

1. Five to ten years from now, how much do we think employment will have gone down as a result of ACA?

Take a look at Europe. The answer almost certainly is (a) perhaps a little, but not much, and (b) it’s going to be swamped by other factors anyway. In fact, if Obamacare eventually leads to the end of employers being responsible for health insurance, it could end up helping employment. More generally, though, if you’re worried about employment trends, then health care taxes and mandates should be the least of your concerns. They’re just a blip by comparison to everything else going on.

1b. How will the effort to introduce greater equality of health care consumption fare if wage and income inequality continue to rise? Will this attempt at consumption near-equalization require massively distorting incentives?

No. Even if we move to full universal health care, it will likely raise marginal tax rates by something in the neighborhood of 6-7 points. That’s nothing to sneeze at, but the bulk of it will replace current spending by employers and will do little to distort anything. The remainder is simply too little to introduce more than a modest amount of distortion in a $15 trillion economy.

2. Will ACA even have improved overall health in America?

Probably a little bit, but not a lot—though it depends on how you measure it. Especially in the under-65 age group, for example, it will do little to reduce mortality. However—and this is something I can’t repeat often enough—this is not the main point of universal care anyway. The main point is to improve quality of life and reduce the life-shattering financial consequences of serious medical emergencies.

3. Given that prices in the individual insurance market already seem to have gone up 14-28 percent, and may go up more once political scrutiny of insurance companies lessens, what is the overall individual welfare calculation from this policy change?

Actually, prices will probably go up less in future years. The initial increase was a one-time response to the new requirements of the law, especially the addition of lots of sicker people to the insurance pool. In the future, given the competition between insurance companies, increases are likely to roughly match the rate of health care inflation.

4. Given supply side constraints, how much did ACA increase the consumption of health services in the United States?

We don’t know yet. But obviously the answer is that, yes, any kind of universal health care entitlement will increase consumption. Once again, though, look at Europe. We have decades of experience in lots of different countries with a wide array of different forms of universal health care, and in every case health consumption is lower than in the US. There may well be birthing pains associated with Obamacare, but in the longer run there’s simply no reason to think that it inevitably has to lead to a significant increase in consumption.

5. How much of the apparent slowdown of health care cost inflation is a) permanent, b) not just due to the slow economy, and c) due to ACA? Or how about d) the result of trends which have been operating slowly for the last 10-20 years?

Obviously historical evidence is never conclusive, but the historical evidence we have points very, very strongly to a permanent slowdown. There’s a lot of variability in medical inflation, but one of the most underreported trends in health care reporting has been our steady, 30-year-long decline in medical inflation. There’s no special reason to think this is suddenly going to change.

If I were allowed only one answer to all these questions, it would be this: Just look at the rest of the world. Health care is not an area where we’re confined to econometric studies and CBO models. There are dozens of countries that have implemented national health care in dozens of different ways, and we can look at how they’ve actually done in the real world. Almost universally, the answer is that they’ve done better than us on virtually every metric. Unless you really, truly believe that the United States is a unique outlier to the laws of economics, there’s very little reason to believe that national health care in America would fare any worse.

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Obamacare is Working, and It Will Probably Continue to Work

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Sacramento Should Leave AB32 Alone

Mother Jones

The LA Times scratches its editorial chin today over the prospect that California’s cap-and-trade program will increase the price of gasoline next year:

Gas prices already have risen by close to 50 cents a gallon since the beginning of the year, for reasons that have nothing to do with AB 32. The prospect of adding 15 cents more — though it’s relatively minor compared with the overall price increase — is daunting to many drivers. Assemblyman Henry T. Perea (D-Fresno) has introduced a bill to delay the extension of the law to transportation fuels for three additional years.

That won’t do at all….The state must give drivers strong incentives to take fewer trips, carpool, use public transit and purchase electric or fuel-efficient vehicles. At the same time, state officials must remain sensitive to the effect a price increase will have on low-income and working-class Californians, especially those who commute long distances in areas where robust public transportation systems have not been built.

….The best solution to this dilemma was proposed this year by Senate leader Darrell Steinberg: Rather than extending AB 32, impose a carbon tax on gasoline, at least for a transitional period. But make it revenue-neutral by giving the money back to taxpayers — and especially low-income taxpayers — through tax credits on the state’s personal income tax.

Huh? Why should we replace one tax with another, and then rebate some of it to low-income taxpayer? If that’s what we want to do, why not just keep the cap-and-trade fees and offset them with the Steinberg’s tax credits? What am I missing here?

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Sacramento Should Leave AB32 Alone

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Nothing Left to Steal?

Mother Jones

Megan McArdle points out that cars are a lot harder to steal than they used to be:

Other forms of crime are also getting less lucrative. “Small-time marijuana dealer” is no longer a viable career option in several states. Robbery is also getting tougher. As credit card transactions have come to dominate cash, the potential return from mugging someone, or knocking over a gas station, has fallen dramatically. Even burglars are facing some challenges: Expensive televisions are now too big to carry unless you bring a dolly and a truck, home theater systems are often wired into the wall, and at least in my circles, women don’t wear as much fancy jewelry or mink as they used to. For a while, small electronics made up the cash gap for burglars, muggers, and purse snatchers, but cell phone manufacturers are putting in “kill switches” starting in 2015, which will torpedo that market.

Well, perhaps in years to come thieves will turn to technology to improve their productivity. I don’t know how, but then again, we rarely predict technological revolutions in advance, do we? Maybe new smartphone apps will allow thieves to target more lucrative mugging victims? Or geolocation apps will predict which homes are likely to contain the most easily fencible items? Or maybe sophisticated data mining operations will produce new and innovative opportunities for blackmail. Beats me. But somehow offense and defense always seem to keep up with each other, don’t they?

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Nothing Left to Steal?

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This Video of a Sudden Freak Hail Storm at the Beach Is Insane

Mother Jones

This video was reportedly taken at a beach in Siberia Saturday. It is terrifying.

Imagine just being at the beach, enjoying your weekend, when all of a sudden IT’S THE END OF THE WORLD!

(via Digg)

Originally posted here – 

This Video of a Sudden Freak Hail Storm at the Beach Is Insane

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Why Our Immigration Courts Can’t Handle the Child Migrant Crisis

Mother Jones

As part of his proposal for dealing with the crisis of child migrants crossing the border, President Obama has asked Congress for $3.7 billion in funding that would be used for, among other things, hiring more judges for the nation’s 59 immigration courts. Those courts have been overwhelmed by the influx of kids coming to the United States without parents or other relatives. But they were overwhelmed even before the children started showing up, in large part because of Republicans’ unwillingness to fund and staff them like other federal courts.

More MoJo coverage of the surge of unaccompanied child migrants from Central America.


70,000 Kids Will Show Up Alone at Our Border This Year. What Happens to Them?


What’s Next for the Children We Deport?


Map: These Are the Places Central American Child Migrants Are Fleeing


“In Texas, We Don’t Turn Our Back on Children”


Mexican Government: Freight Trains Are Now Off-Limits to Central American Migrants

For years, since the second Bush administration radically stepped up, and Obama continued, deportation efforts targeted at undocumented immigrants, advocates have been begging Congress to beef up the funding for the courts that must process those new cases. As far back as 2006, then-Attorney General Alberto Gonzales recognized that the immigration courts were woefully understaffed to process a backlog of cases that back then stood at 169,000. Gonzales called for more funding to increase resources for the courts, including adding more 40 judges.

But then his office proceeded to attempt to fill those jobs (and others at the Department of Justice) with political hacks who couldn’t make it through the Senate confirmation process to land on a regular federal court. (Immigration courts fall under the jurisdiction of the DOJ, and their judges don’t require Senate confirmation.) One example: Carey Holliday, a Louisiana delegate to the 2004 GOP convention who made headlines for trash-talking former Mother Jones editor Michael Moore, who was at the convention filing dispatches for USA Today.

Other Bush appointees had a distinctly pro-government bias. One judge, Thomas Roepke, appointed to a court in El Paso, Texas, in 2005, denied fully 96.3 percent of all asylum cases that came before him between 2007 and 2012, according to records obtained by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University.

Before he got very far with the immigration judge hiring spree, Gonzales resigned under fire for politicizing hiring at the DOJ, and by 2008, the immigration courts had eight fewer judges than when Gonzales launched his clarion call.

Meanwhile, while guys like Holliday were taking slots on the immigration bench, poor working conditions, crushing caseloads, and the overly politicized nature of the appointment process left the courts hemorrhaging other judges during the Bush administration. By the time Obama took office, immigration courts had a vacancy rate that reached 1 in 6 judgeships. The new Obama administration began hiring judges furiously, eventually adding an additional 44 new bodies to the immigration bench. Even so, his concurrent move to step up border enforcement meant that the deportation caseloads were growing even faster:

Immigration judges can expect to handle 1,500 cases at any given time. By comparison, Article I federal district judges handle about 440 cases, and they get several law clerks to help manage the load. Immigration judges have to share a single clerk with two or three other judges. (For more, see Casey Miner’s “Judges on the Verge of a Nervous Breakdown” from our November/December 2010 issue.) The lack of staffing creates an irony that seems to be lost on the current Congress: Too few judges means that people with strong cases languish for years waiting for them to get resolved, while people with weak cases who should probably be sent home quickly get to stay in the United States a few years waiting for a decision.

That dynamic is only getting compounded with the recent influx of unaccompanied juveniles, who usually don’t have lawyers to represent them in court. “It’s ironic and counterintuitive that we should not give enough money to the system to allow it to work more quickly,” says Dana Marks, an immigration judge in San Francisco and president of the National Association of Immigration Judges.

In 2010, the American Bar Association called on Congress and the White House to immediately initiate the hiring of at least 100 new judges to help relieve the existing crisis in the courts. Instead, Congress failed to deal with the budget of any agency, sequestration happened, and the Justice Department started a hiring freeze that didn’t end until December 2013, even though at least 100 sitting immigration judges are eligible to retire this year. Meanwhile, the comprehensive immigration bill passed in the Senate last year would have added 225 new judges to the immigration courts over three years (along with clerks and support staff), but Republicans killed the bill in the House.

Today, there are 243 judges—just 13 more than in 2006 and 21 fewer than at the end of 2012—and more than 30 vacancies the government is trying to fill. All this despite the fact that the immigration court backlog has increased nearly 120 percent since 2006. And that was before the kids started coming. Last week, TRAC reported that the official immigration court backlog in June hit 375,503, up by 50,000 since the start of 2013. Among the languishing cases: more than 12,000 kids each from Guatemala, El Salvador, and Honduras. All told, more than 40,000 cases in the current court backlog involve children, and the numbers are growing. The average time an immigration case has been pending is now up to 587 days:

Marks says the long-running court crisis has hindered judges’ ability to respond to what’s happening with the onslaught of unaccompanied kids. “The whole problem with this surge,” she says, “is that it has occurred on top of a crisis in the court that no one was talking about.”

Obama is trying to change that equation. His budget request would add 40 new judges to the 35 he has already requested for next year, with the goal of creating enough capacity to handle an additional 55,000 to 75,000 cases a year. But the disconnect between what the country spends apprehending and detaining undocumented immigrants and what it spends processing them is still stark. While Obama has requested an additional $64 million to fund the immigration courts, that figure is dwarfed by the $1.5 billion he requested for border security and Immigration and Customs Enforcement.

In the end, the extra enforcement funding is likely to generate so many new cases that any judges added to the court will be just as backlogged as the ones there now, offering little hope of speeding up the process for all those kids currently languishing in border detention centers.

For more of Mother Jones reporting on unaccompanied child migrants, see all of our latest coverage here.

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Why Our Immigration Courts Can’t Handle the Child Migrant Crisis

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Your Almond Habit Is Sucking California Dry

Mother Jones

California farmers will reap a record 2.1 billion pounds of almonds this year, the USDA estimates—about three times as much as they did in 2000. That’s great news for the world’s growing horde of almond eaters, because the state’s groves supply 80 percent of the global harvest. As this chart shows, California has been planting more and more almonds over the past two decades:

And those almonds are miniature cash cows:

But in the long term, the almond boom may prove bad news for everyone who relies on California’s farms for sustenance. You might have heard that the state, supplier of half of US-grown produce, is locked in its worst drought on record. Meanwhile, it takes 1.1 gallons of water to produce a single almond, as my colleagues Alex Park and Julia Lurie have shown. You don’t have to scramble to figure how many almonds make up 2.1 billion pounds to realize that that’s a hell of a lot of water.

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Your Almond Habit Is Sucking California Dry

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This 28-Year-Old Knows Which Artists You’ll Be Listening To 6 Months From Now

Mother Jones

It was 8 p.m. on a Tuesday evening and the Chapel, a popular San Francisco venue, was already starting to fill. Young hipsters elbowed past the fogeys idling in back to stake out a prime spot on the floor. As soon as St. Paul and the Broken Bones hit the stage, though, the diverse crowd was transformed into a seamless sea of screaming fans, singing and swaying to the Birmingham, Alabama, band’s modern take on the soul sounds of yesteryear.

St. Paul’s rise has been unusually meteoric for a band that didn’t even exist until a year and a half ago. True, frontman Paul Janeway charms audiences between songs and delivers dance moves just awkward enough to be cool. And with Jesse Phillips on bass, Browan Lollar on guitar, Allen Branstetter on trumpet, Andrew Lee on drums, Ben Griner on trombone and tuba, and the well-known Al Gamble on keys, these guys know how to work a crowd. Even so, it was their first official tour, and here they were selling out weeknight shows on the other end of the country.

St. Paul and the Broken Bones do the tourist thing. stpaulandthebrokenbones/Instagram

It all happened with lightning speed. In March, just after the release of their debut album, Half the City, St. Paul played at a South by Southwest showcase in Austin, Texas. A few days later, Rolling Stone proclaimed them one of the “48 Best Things” at the festival. Then came a review in the Guardian and an NPR story, followed by performances on CBS This Morning: Saturday and The Late Late Show with Craig Ferguson. Soon their album was No. 56 on the Billboard 200. “I think we are all genuinely surprised. We were just, we were taken aback by it,” Janeway told me. “It has been crazy. It has been a little—weird.”

Alex White could have predicted it. Actually, he did. White, 28, is the co-founder of a company called Next Big Sound (“Making data useful”), which, as its name and slogan imply, uses computer algorithms to determine which musical acts are about to take off.

Launched in 2009, and widely consulted by the mainstream music industry, the company crunches consumption data from social media and music-streaming sites, tracks buzz on Facebook, Twitter, Soundcloud, and YouTube, and collects private sales figures from clients and partners to inform its predictions. Its engineers and analysts—some of whom hail from data positions at Microsoft, the New York Yankees (think Moneyball), and the Department of Defense—compile everything into a ranking system.

The company’s Social 50 chart lists the internet’s most talked-about acts—the Beyoncé’s of the world—while its Next Big Sound chart lists the hottest up-and-comers. St. Paul and the Broken Bones, as it happens, showed up at the top of the latter chart about a week before its March SXSW showcase. “I learned that we were number one on something,” Janeway recalls with a full-bodied laugh. “And I thought, ‘Oh! We are number one on something!'”

The guys didn’t think much of it, but it may well have kicked open some big doors for the band. Next Big Sound, first conceived by White when he was an undergraduate at Northwestern, now provides data for 70 percent of the music industry. Competitors have followed its lead, looking to cash in on social media metrics, but NBS’s paid subscribers range from the world’s biggest labels and distributors to hordes of individual artists and managers. The company is growing as quickly as some of the acts it lists. According to White, it’s on track to double its revenues this year.

White, who had worked previously with Universal Music Group, spotted his opportunity in the late aughts, as a new crop of music-steaming sites sprung up and CD sales continued to tank. “I think that everyone feels like they are very far behind in terms of their understanding and grasp of how to market successfully and analytically in this new world,” he says. “To boil it down, change has been the only constant over the last five years.”

What he was selling, really, was confidence. “We are making these predictions and drawing a line in the sand, saying these are the artists that are going to do really well,” Alec Zopf, one of the company’s software engineers, told me.

The various metrics are entered into a complex algorithm that quantifies an artist’s fan growth and social interactions to determine who is resonating most with their audiences. It’s not purely objective. The inputs are weighted according to analysts’ knowledge of industry trends and historic patterns of artistic success. “It is sort of a mix of art and science,” Zopf explains, one that combines calculation, curation, and strategic analysis.

But somewhere along the line, Next Big Sound has become something more than a data-cruncher for music marketers. In true Heisenbergian fashion, its algorithms have begun to affect outcomes by changing the way labels track artists and make decisions. In short, the company is becoming a hitmaker itself. “Measurement is never neutral,” notes Nancy Baym, who studies social media metrics at Microsoft Research and has authored several papers on the topic. “The way you measure things shapes the way you think about what you’re measuring. It shapes the way you approach it. It shapes the kinds of materials that you create.”

White acknowledges as much. He often hears from managers and artists who have been approached with record deals, publishing contracts, and higher tiers of management after appearing on his company’s charts. “I think there is sort of a feedback mechanism that has started.”

“In some ways it helps shape trends more than it helps predict them,” says Jason Feinberg, the VP of digital strategy for Epitaph Records, one of America’s biggest indie labels, who has been using Next Big Sound for years. “I don’t think any of these tools have really gotten far enough along to predict much.” Feinberg says he mostly uses the platform to see how artists are doing in particular regions, or to answer specific questions: Say a band’s numbers “spike out of nowhere where we weren’t doing a heavy marketing campaign, or there wasn’t a TV appearance, anything like that,” he says. “Looking for what causes that is often something these tools can show you.”

Baym points out that search engines and social media can be gamed—likes and follows are easily purchased. Next Big Sound’s data analysts are well aware of it, says engineer Zopf. They scour the data for irregularities and do their best to weed out any phony fans. They also regularly tweak the magic formula to account for what’s hot in social media—and what’s not. SoundCloud, for instance, has gained clout in the algorithm recently, whereas MySpace (remember MySpace?) continues to languish.

There are other pitfalls, though, to relying on social media buzz and other online interactions to identify consumer trends. “You have to think about who is participating in those systems in the first place,” Baym says. “There are a lot more people lurking and not ‘liking,’ and not actively discussing things at any given time. So it is always going to be kind of skewed, because you are not tapping who is singing along really loud in their car.”

The data also tends to be slanted toward those genres whose fans are most active on the internet, such as EDM (electronic dance music), which is consumed and shared almost entirely online, especially in Europe. “The less that a genre has consumers that interact online and are able to be measured, the less effective the software is,” White concedes. “Classical and jazz, we have strong coverage of those artists, but there isn’t a lot of volume on YouTube and Spotify.”

Sachin Doshi, the head of development and analysis at Spotify, concurs: “Our genre spectrum is a little bit different than the average across the population,” he says. “When Spotify is growing in a particular market, we get early adopters first. Things like EDM over-index, especially early on.”

And, of course, younger audiences are the most inclined to engage online, regardless of genre. “Watching a video, looking at a photo, listening to a song—simple engagement is starting to happen across all demographics,” says Epitaph’s Feinberg. “But when it comes to heavy engagement—entering contests, creating content, things like that—certainly younger demographics.”

This makes Next Big Sound attractive to corporate clients outside of the music industry who are eager to tap into the youth market—NBS signed its first Fortune 50 brand deal last fall and is ramping up that end of the business. “Brands recognize that it is a great way to attract their target customer,” White says. “I think it’s a great opportunity for our existing customers to measure and engage and work with artists that really resonate in the marketplace.”

Yet “there is a downside to the belief that the data is a crystal ball, or that by having this data we suddenly now can learn things that we have never known before,” Feinberg says. “As much as I am a believer in this, I think the downside is when people rely too heavily on it for something they don’t know, or jump to conclusions based on just a small subset of data.”

To be sure, labels that channel their investments toward artists with social media savvy run the risk of putting sales tactics ahead of talent. Mike King, a marketing lecturer at the online branch of Berklee College of Music in Boston, told me he would like to see labels use the data to help great acts move up organically, as opposed to shoving the chosen few down our throats from on high. “The goal will be the right consumer hearing about the right music through the right outlets at the right time,” he says. “I am hoping that marketers can interpret the data and say, ‘Here is where the core fans are for this particular artist, and we are going to reach out with the right content on the right platform.'”

Feinberg agrees, adding that the data needs to be interpreted by people who understand the artistic landscape. “You can’t just look at it and make decisions based on it,” he says. “You have to mix it in with all the other data you have, as well as all the expertise of the people in the room. Then you have something useful.”

Either way, these sorts of metrics are only going to become more common throughout the business world. “It will always be flawed, especially in culture industries, and there will be conflicts between the sense that these are really helpful predictors because they do provide some economic security, supposedly,” Baym says. “On the other hand, there’s the people who are saying you are taking all the art out of it.”

St. Paul and the Broken Bones is just happy to be playing for an enthusiastic audience, which stomps its feet and chants for more even after the band’s third encore. It’s late, though, and the lads have a long drive to Los Angeles ahead. Before leaving the stage, each member takes a bow. One snaps a picture of the cheering crowd for the band’s Instagram. Fans demand attention, after all, and St. Paul is happy to oblige.The internet and social media is the best thing that has happened, because it is the judge. It tells you; the people are going to tell you,” Janeway says. “That puts it back into the people’s hands a little bit.”

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This 28-Year-Old Knows Which Artists You’ll Be Listening To 6 Months From Now

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Restaurant CEOs Make More Money in Half a Day Than Their Employees Make in a Year

Mother Jones

Richard Drew/AP

Last year, according to a new analysis from the Economic Policy Institute (EPI), the CEOs of America’s top 25 restaurant corporations, including McDonald’s, Burger King, the Cheesecake Factory, Chipotle, and Jack in the Box, took home an average of 721 times the money minimum wage workers did, and 194 times the take-home of the typical American worker in a production or non-supervisory job. Restaurants and food services employ nearly half of all American workers who earn the federal minimum wage of $7.25 per hour (or less).

The report “confirms what we have long known,” Cherri Delesline, a McDonald’s crew member and mother of four in Charleston, South Carolina, told Mother Jones. Since November 2012, she and hundreds of other fast-food workers have gone on strike in 150 American cities and 80 foreign cities, demanding they be paid $15 per hour. “While CEOs make millions of dollars in profits, we still can’t afford to pay our rent or buy clothes for our children,” says Delesline, whose hourly pay is $7.35.

“It’s a picture of uncontrolled greed,” EPI vice president Ross Eisenbrey says. “How can it be that the CEOs are making more in half a day than many of their workers are making in an entire year—and yet they can’t afford to raise the pay of those workers?” CEO pay has been out of control across all business sectors since at least the late-1980s, he adds. From 1978 to 2013, for instance, average CEO compensation, adjusted for inflation, soared nearly 1,000 percent, while the typical worker’s pay increased by just over 10 percent.

Roughly 1 in 10 American workers are employed by restaurants, according to the National Restaurant Association. The industry, the trade group predicts, will see $683 billion in sales this year—up 17 percent over 2010. But a greater share of those revenues has been flowing to top executives. As this interactive graph shows, CEO compensation at America’s top restaurant chains has ballooned since 2008, while the annual take of their lowest-paid workers has largely flatlined. (This analysis assumes tipped workers reach the federal minimum wage through base pay and tips, although that isn’t always the case, as we’ve reported previously.)

While the recent strikes have pressured a few chains to consider raising their wages, some executives argue that raising pay would hurt business, and franchise owners say their thin profit margins can’t bear any increases. Just last week, Andy Puzder, CEO of the conglomerate that owns Carl’s Jr. and Hardee’s, told Yahoo! Finance that raising the federal minimum would force companies like his to raise prices and ultimately reduce job opportunities for young and inexperienced workers. You can’t solve the problem, he said, “by having the government artificially mandate a wage increase when there’s no economic growth to support that.”

Puzder—whose compensation totaled nearly $4.5 million in 2012, or 294 times what minimum-wage workers made that year—claimed that “if government gets out of the way, businesses will create jobs…Wages will go up and the country will go back to a state of prosperity instead of what we’re in now.”

Actually, the financial information company Sageworks reports that the restaurant industry fared pretty well during the recession, growing at about 5 percent annually since 2009. And the majority of fast-food workers aren’t teenagers: More than 60 percent are 20 or older, according to the Center for Economic and Policy Research. As Huffington Post‘s Jillian Berman points out, more adults are working in fast food not because they can live off the wages, but simply because they have no better alternatives.

Meanwhile, a new study finds that 61 percent of small business owners favor a minimum wage hike to keep pace with cost of living, supporting previous findings on the topic. Some national retail companies, such as Ikea and Gap, have also chosen to raise their starting wage. Likewise wholesale merchandiser Costco, where entry-level employees get $11.50 an hour. “We know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment, and loyalty,” CEO Craig Jelinek said in a statement supporting of a bill that would raise the federal minimum wage—to just over $10.

Here’s a list of the 25 CEOs EPI analyzed, and what they made last year.

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Restaurant CEOs Make More Money in Half a Day Than Their Employees Make in a Year

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2008 Obama Would Have Slammed 2014 Obama for This Government Secrecy Case

Mother Jones

During the 2008 presidential campaign, Barack Obama hammered George W. Bush for expanding government secrecy. Obama promised that his would be the most transparent and open administration ever. In particular, Obama criticized the Bush administration’s use of a legal loophole known as the state secrets privilege. Citing this privilege, government lawyers can keep evidence and testimony from being introduced in court that would reveal government secrets. That means that if someone sues the government for wrongdoing—say, a plaintiff claims that he or she was illegally spied on or tortured at the behest of the US government—the Justice Department can claim key pieces of evidence will expose national security secrets and prevent this material from being used in court. Doing so would hinder or outright squash the person’s case.

In 2008, Obama griped that the Bush administration invoked the state secrets privilege “more than any other previous administration” and used it to get entire lawsuits thrown out of court. Critics noted that deploying the state secrets privilege allowed the Bush administration to shut down cases that might have revealed government misconduct or caused embarrassment, including those regarding constitutionally dubious warrantless wiretapping and the CIA’s kidnapping and torture of Khaled el-Masri, a German car salesman the government had mistaken for an alleged Al Qaeda leader with the same name. After Obama took office, his attorney general, Eric Holder, promised to significantly limit the use of this controversial legal doctrine. Holder vowed never to use it to “conceal violations of the law, inefficiency, or administrative error” or “prevent embarrassment to a person, organization, or agency of the United States Government.”

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2008 Obama Would Have Slammed 2014 Obama for This Government Secrecy Case

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Economic Growth Looks Pretty Grim These Days

Mother Jones

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Via James Hamilton, the Atlanta Fed is now making its GDP forecasts publicly available. As you can see, they’ve gotten steadily more pessimistic since April and are now predicting a growth rate of 2.6 percent in the second quarter.

Now, there are two way to look at this. The glass-half-full view is: Whew! That huge GDP drop in Q1 really was a bit of a blip, not an omen of a coming recession. The economy isn’t setting records or anything, but it’s back on track.

The glass-half-empty view is: Yikes! If the dismal Q1 number had really been a blip, perhaps caused by bad weather, we’d expect to see makeup growth in Q2. But we’re seeing nothing of the sort. We lost a huge chunk of productive capacity in Q1 and apparently we’re not getting it back. From a lower starting level, we’re just going to continue along the same old sluggish growth path that we’ve had for the past few years. All told, GDP in the entire first half of 2014 hasn’t grown by a dime.

I am, by nature, a glass-half-empty kind of person, so feel free to write off my pessimism about this. Nonetheless, the GHE view sure seems like the right one to me. It’s just horrible news if it turns out that during a “recovery” we can experience a massive drop in GDP and then do nothing to make up for it over the next quarter. It’s even worse news that the unemployment rate is going down at the same time. I know that last month’s jobs report was relatively positive, but in the longer view, how can unemployment decrease while GDP is flat or slightly down? Not by truly decreasing, I think. It happens only because there’s a growing number of people who are permanently left behind by the economy and fall out of the official statistics.

But hey. This is just a forecast. Maybe the Atlanta Fed is wrong. We’ll find out in a couple of weeks.

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Economic Growth Looks Pretty Grim These Days

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