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Saving for Retirement Is a Struggle—Unless You’re a CEO

Mother Jones

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President Barack Obama has called runaway income inequality the “defining issue of our time.” The disparity between exploding corporate profits and stagnating paychecks fueled Bernie Sanders’ presidential campaign and continues to grow. Currently, the United States has a wider gap between the very rich and everyone else than at any time since the late 1920s. And according to a new study from the Institute for Policy Studies, that spells disaster for Americans trying to save enough to retire.

The study, titled “A Tale of Two Retirements,” found that in 2015 just 100 CEOs had retirement funds worth $4.7 billion—equivalent to the entire retirement savings of the least wealthy 41 percent of American families, or 116 million people. That figure is even more staggering when broken down by race: Those 100 execs’ retirement funds are worth as much as the entire retirement savings of the bottom 44 percent of white working-class families, the bottom 59 percent of African American families, and the bottom 75 percent of Latino families.

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Look at it another way. Those 100 CEOs have nest eggs large enough to generate a retirement check of more than $250,000 per month for the rest of their lives. Meanwhile, the average American fortunate enough to have a 401(k) plan has socked away only enough to receive a monthly check of just $101. And those are the lucky ones: 37 percent of all US households have no retirement savings at all. Neither do 51 percent of African American families and 66 percent of Latino families. Things are also particularly bleak for millennials, as Americans younger than 40 have saved 7 percent less for retirement than similarly aged boomers.

The hollowing out of workers’ retirement benefits punishes female retirees, in particular: Median incomes for women 65 and older are 45 percent lower than men’s. And since women live longer than men, on average, they must stretch their retirement savings even further.

So who are these rapacious retirees? Many of them head companies that have been cutting back on worker pensions and retirement funds for years. John Hammergen, the CEO of the pharmaceutical giant McKesson, holds nearly $150 million in retirement assets. Shortly after joining the company in 1996, he closed its pension fund to all new employees. Yet Hammergen found enough money to set up a retirement account that has furnished him with assets worth more than $20,000 for every day he’s spent at the company’s helm.

Walmart CEO Doug McMillon already had $67.8 million stashed in an untaxed, deferred compensation account in 2015, despite having only held his post since 2014. His predecessor, Michael Duke, retired with more than $140 million in deferred compensation. In contrast, fewer than two-thirds of Walmart’s 1.5 million employees have a company-sponsored retirement account. Those who do have an average balance of less than $24,000, enough for a monthly retirement check of $131—not even 0.04 percent of what McMillon can expect to take home every month.

Jeff Immelt, the CEO of General Electric, has more than $92 million in retirement assets. Between 1987 and 2011, the company contributed not one penny to employee pension plans, counting on rising stock prices to offset its expected contribution. After the economy crashed in 2008, Immelt froze pensions and closed them to new participants. The company has only funded 67 percent of its outstanding pension obligation to workers and its pension deficit has grown by $5 billion since 2011. During the same time, Immelt’s company-sponsored retirement assets have swelled from $53 million to $92 million.

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So how has this happened? Simply, the tax rules are structured in favor of massive executive retirement packages. Ordinary workers face strict limits on how much pre-tax income they invested in tax-deferred plans like 401(k)s. (The current limit is $18,000.) CEOs may participate in regular employee plans, but they also get Supplemental Executive Retirement Plans, which Fortune 500 companies set up with unlimited tax-deferred compensation. Since more than half of executive compensation is tied to stock price, CEOs have direct incentives to cut back on worker retirement benefits to pad their balance sheets. The money saved by those cost-cutting measures goes straight back into executives’ pockets, often tax-free: Corporations may deduct unlimited amounts of executive compensation from their federal taxes so long as it’s “performance based.”

Much of this is the result of Reagan-era policies that worked to prioritize corporate profits and undo the power of unions. Under Reagan, companies began to adopt 401(k)s over pensions, shifting investment risk from employers to workers, as these plans required workers to deduct savings from their paychecks with no guarantee of future benefits. Companies have also reduced retirement benefits by converting workers’ pension assets to cash balance plans, freezing retirement plans, closing retirement plans to new hires, or terminating retirement plans altogether.

Might this get better under President-elect Donald Trump, whose economic message seemingly resonated with white-working class voters? Don’t count on it. If Trump and congressional Republicans cut the top marginal tax rate from 39.6 percent to 33 percent, Fortune 500 CEOs would stand to save $195 million when they withdraw cash from their tax-deferred retirement accounts, according to IPS.

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Saving for Retirement Is a Struggle—Unless You’re a CEO

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The Price Is Wrong

Mother Jones

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The American Medical Association, the country’s largest professional group of doctors, wasted no time in throwing its support behind Rep. Tom Price (R-Ga.) after he was announced on November 29 as President-elect Donald Trump’s pick to be secretary of health and human services. “His service as a physician, state legislator and member of the U.S. Congress provides a depth of experience to lead HHS,” the AMA said in a press release that same day. “Dr. Price has been a leader in the development of health policies to advance patient choice and market-based solutions as well as reduce excessive regulatory burdens that diminish time devoted to patient care and increase costs.”

It’s not surprising that the organization, which has battled against various health care regulations, would be eager to see Price appointed. The former orthopedic surgeon has long complained that doctors face, as the AMA put it, “excessive regulatory burdens,” and his proposals would lead to increased pay for doctors. But they would also reverse reforms that have kept health care spending in check during Barack Obama’s presidency and could send costs skyrocketing once again.

For all of the controversy over health care under Obama, there has been general agreement on one area of success: Growth in health care spending has slowed. The Affordable Care Act, popularly known as Obamacare, created new schemes for paying doctors and hospitals that helped sharply reduce the annual increase in national health care spending and keep it below pre-recession levels. Both Republicans and Democrats have supported these provisions, which have centered on charging for the overall quality of care rather than for each service performed. But now Price, a longtime booster of freeing doctors from government restrictions, appears eager and able to undo them.

David Cutler, a Harvard professor who served as Obama’s senior health adviser during the 2008 campaign and helped craft the ACA, is worried that the progress on slowing health spending would stall or reverse under Price. “Price has expressed skepticism about many of the payment changes that have been ongoing and have bipartisan support,” he says. “This is quite scary, as they are starting to pay off. He seems to want to go back to the days when price was based on the volume of services provided, not the value. I don’t know if it’s a product of being an orthopedic surgeon, where that is how one earned a lot of money. In any case, I don’t think it bodes well for the vast changes in the health care landscape that are taking place.”

Much of the attention paid to Price’s plans for dismantling the ACA has focused on his proposal to undo the expansion of health insurance coverage. In short, Price would wipe away the Medicaid expansion that has given millions of poor people access to health insurance. The effect, as Sarah Kliff explains in Vox, would be to make the individual market more expensive for people who have been sick.

But the ACA wasn’t just an effort to expand health insurance. Until the 2008 recession slowed it, the cost of health care was rising at an alarming rate, accounting for an increasing share of the country’s total spending, and the trend lines projected unsustainable spending levels in the future. The ACA introduced a host of reforms and pilot programs for different schemes to reward doctors based on health outcomes in order to keep spending under control. The exact mechanisms were complex, but the basic idea was simple: The fees charged by US doctors and medical facilities were far higher than worldwide norms, and the best way to slow the growth of health care spending was to keep those pay rates in check.

Despite the hoopla this fall over rising premiums in the ACA marketplaces, the growth in health care spending slowed immensely during the Obama years, before a recent uptick. That growth peaked in 2002, at an 9.6 percent annual rate. During the recession, the rate dropped sharply, to 4.5 percent in 2008. But even as the economy rebounded, health care spending growth continued to decline, dipping to 2.9 percent in 2013—the lowest growth rate in more than half a century. It inched back up again in 2014, and earlier this month the Centers for Medicare & Medicaid Services announced a 5.8 percent growth rate for health spending in 2015—still below pre-recession levels, even though the ACA expanded insurance coverage to 20 million more Americans. A study from the Urban Institute earlier this year found that the amount the United States spent on health care under the ACA was far lower than anticipated—$2.6 trillion lower over five years.

Price has never been shy about his advocacy on behalf on doctors. When he first ran for Congress in 2004, he complained that people who lacked a background in the medical field were setting regulations and policy. Health professionals are by far the largest group funding his congressional career, having donated $3.6 million to his campaigns. The insurance industry is second, with more than $800,000 in donations.

Easing the restrictions doctors face when accepting patients with government-funded health insurance has been a central part of his health care policy proposals. When he reintroduced his Obamacare replacement plan earlier this year, he described it as “one that empowers patients and ensures they and their doctor have the freedom to make health care decisions without bureaucratic interference or influence.”

One of his key pushes over his time in Congress has been “private contracting” that would give Medicare patients access to doctors who don’t normally accept Medicare because of the lower rates it pays. But there’s a catch: The patients must pay extra fees to the doctor, on top of the rate Medicare pays the doctor. That gives doctors a perverse incentive to abandon Medicare so that they receive more from those patients than they’d get under Medicare alone. The consequence would be a reduction in Medicare participation among doctors, which would in turn reduce the government’s bargaining power in negotiating prices.

Price’s background as an orthopedic surgeon might be part of the reason he’s disinclined to support payment reforms, says Len Nichols, director of the Center for Health Policy Research and Ethics at George Mason University. Nichols notes that specialists who see patients only for specific problems have different incentives from doctors who see patients repeatedly. “They are almost perfectly tailored for fee-for-service, episodic, fix your knee, they make sure it works, goodbye,” Nichols says. “Because of that, as a class they tend to be rather skeptical of all this bundling, payment reform, incentive stuff, because they look at it like: I have a price for your knee, I fix your knee, then I’m done with you, you’re done with me.”

Price has been harshly critical of the Center for Medicare & Medicaid Innovation, an office created by the ACA to conduct experiments in new ways of compensating doctors that can, if successful, be expanded without congressional approval. Price spearheaded a letter from Republican members of Congress in September demanding that CMMI stop all of its mandatory payment reforms. “CMMI has overstepped its authority and there are real-life implications—both medical and constitutional,” Price said at the time. “That’s why we’re demanding CMMI cease all current and future mandatory models.”

Price did join the majority of both Democrats and Republicans in the House voting in favor of the Medicare Access and CHIP Reauthorization Act of 2015, which will eventually require doctors to bill Medicare patients based on quality, rather than quantity, of care. But he’s since sounded a more skeptical note, objecting earlier this year to the Obama administration’s rulemaking language on the bill because it would move doctors away from a fee-for-service model.

“He was a founding member of the tea party caucus,” Nichols says. “Skepticism of government is in his veins. If you have a natural, professional distaste, disinclination, distrust of these payment reform things, and you couple that with they’re coming from government, then it’s a double whammy.”

Price has also proposed some more extreme health care reform ideas, such as privatizing Medicare and turning Medicaid into a block grant program—in effect reducing the amount of money spent on poor people’s health coverage over time. But these large-scale changes would require acts of Congress. Many of the programs for cost control experiments and pilot programs, by contrast, are at the direction of HHS—leaving the prospective secretary in broad control of the way doctors and hospitals are paid.

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The Price Is Wrong

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Here’s the Moment Trump’s Future Secretary of State Received an Award From Putin

Mother Jones

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The wait is over: President-elect Donald Trump finally announced his nominee for secretary of state Tuesday morning: Rex Tillerson, ExxonMobil CEO and official “friend” of Russia.

In June 2013, Tillerson and other oil company executives were awarded the Order of Friendship by President Vladimir Putin—a high honor previously bestowed upon a former basketball coach in Ohio and a Russian art collector in Minnesota. Tillerson received the award after signing an agreement in 2011 with OAO Rosneft, a Russian state-owned oil company that gave ExxonMobil and Rosneft access to Russia’s rich Arctic energy resources. (That relationship became more complicated when the United States slapped Russia with sanctions over its annexation of Crimea and interference in Ukraine in 2014.)

Watch Putin announce the award and declare a new period of “full-fledged cooperation” in this video (above), published originally in full by the Kremlin.

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Here’s the Moment Trump’s Future Secretary of State Received an Award From Putin

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Donald Trump Is Once Again the Day Trader in Chief

Mother Jones

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Early this morning Donald Trump launched another one of his famously random tweets:

The F-35 program is pretty famously over budget. I don’t think anyone will argue with Trump about that. But Christopher Bouzy asks an interesting question. Here’s a chart showing Lockheed Martin’s stock price today:

Bouzy wonders if someone profited by knowing about Trump’s tweet a few minutes before it went out. This is a reasonable suspicion if you look at tweeting and trading times down to the minute, but if you look at them down to the second you get a different picture. Trump’s tweet went out at 8:26:13 and there were a flurry of small trades ten seconds later, followed by a second flurry three seconds after that. This caused Lockheed Martin’s price to drop considerably, but only because pre-market trading volume is pretty low and illiquid, so even a smallish trade can send prices down. Most likely, these flurries were day traders who happened to see Trump’s tweet and acted instantly, or perhaps some kind of bot that reacts to Trump tweets.1

But even if there was no hanky panky, our president-elect still seems to have had an effect: Lockheed Martin stock traded very heavily today and closed down by more than two percent. Coincidence? Or a response to Trump’s tweet?

This revives a question we asked last week after Trump tweeted about Softbank, sending Sprint and T-Mobile stock upward. Do we really want the president of the United States calling out individual corporations and affecting their stock prices? Do we really want to be left wondering if maybe someone had a little advance knowledge of Trump’s tweets? That doesn’t seem to have been the case today, but if you knew a day ahead, for example, your trade would get lost in the noise and no one would ever know.

I assume the answer to these questions is no, isn’t it?

1Ridiculous? Not at all. I’d be surprised if someone hasn’t done this.

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Donald Trump Is Once Again the Day Trader in Chief

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For Neil Young, the Trump Era Feels a Lot Like the ’60s

Mother Jones

Legendary rocker Neil Young continues to add to his 50-plus-year recording career with his just-released studio album Peace Trail. A shrewd collection of new songs, written and recorded quickly this past summer, the album is one of immediacy, with kinetic playing from a spare crew of Jim Keltner on drums and Paul Bushnell on bass. With bits of processed vocals added to the folk-rock core, and an amplified harmonica that sounds like Little Walter after a Marvel-esque dose of radiation, Young employs strategies meant to throw the whole thing off kilter and make you listen closer.

The songs cover the things on the singer’s mind right now, both within—old dreams broken and those newly forming—and in the world around him: Standing Rock, xenophobia, immigration, and technology. For an artist at 71, it’s beautifully charged, invigorated, and present work. While the call is urgent, Young doesn’t beat you over the head with the message so much as inject you with it. I spoke with Young over the phone while he was at his home in Colorado.

Mother Jones: Overall, it feels very much like this is an album about being present with things happening in the world, as well as with your own feelings. Tell us a bit about the emergence of this record.

Neil Young: I started writing “Peace Trail” here in Colorado, then I went back to California. I had a few other tunes going around in my head, so I had a couple of them finished after a few days and then I wanted to go into the studio. I like to go in right away as soon as I have things. I called the guys from Promise of the Real, whom I’ve been playing with, and they were all on the road. Right after I hung up the phone, I wrote another song and started writing another, and I’m going, “Hey, I can’t wait. I should be doing this now!” My experience tells me that when it’s there, it’s there, and you can’t make it wait. So I got Jimmy Keltner and Paul Bushnell, two good guys, and went in and did this record.

MJ: Both of those guys, obviously, are experienced session musicians. Did you relate specific things to them or did you all kind of feel things out together?

NY: I would play all the parts of the song, show them the way it went together. Then I’d basically break down an arrangement—I wouldn’t plan endings or beginnings—so they knew everything that was going on. I had the lyrics on a prompter so that I could remember everything I’d written, and I was able to just get into the groove and play with them. Most cases it’s Take 1 or Take 2 on that record. I think “Peace Trail” is one of the exceptions, where it’s a later take. It just happened really quickly. It’s the way I like to work for these kinds of songs. It was the right time of the month; everything was looking good.

MJ: I felt like the immediacy of the playing on this particular album, and some of the disruptive things you introduce, like the sound processing on the harmonica and vocals in places, make the listener pay more attention.

NY: The songs were written to have a certain simple form. Everything is minimal, and if it’s over, it’s over. We’re abrupt with things: in and out. Especially if it’s an overdub—it’s gone. It does something that’s not real. It’s not trying to be like it was there. I think the ultimate result of it is you can get inside the record. I do one take; I never overdubbed twice. I know there’s stuff that isn’t perfect, but it doesn’t matter: Nothing is perfect, and there is a magic there that is undeniable because of the fact that we don’t care about those things. We’re really more interested in what we’re saying than how we’re saying it.

MJ: On the song “Peace Trail,” you express a commitment to moving forward and a sense of optimism with the refrain, “Something new is growing.” Did the November election alter that outlook?

NY: Not really. I still feel the same about everything in there. There’s nothing I said that I would change or make different now. I’ve already gotten into the next record, so I started that on the 6th of November.

MJ: In the song “Can’t Stop Workin’,” you sing that work is “bad for the body but good for the soul.” What’s hard for you?

NY: I think it’s the constant work; performing and traveling. It gets to be a bit of a strain. But if you pace yourself, which I’ve managed to do, you can go pretty well. And now I’m at a point where I decided I’m going to be in the studio for a while, at least until I finish this record I’m working on now. I should have two, three, four of the sessions that I had that were similar to the sessions for Peace Trail before I have a complete record. But I’m off to a good start and it may happen faster. Who knows?

MJ: I had an unsettling feeling that the purpose of my own work as an artist should maybe change after this election, but I’m unsure how. You’ve lived through really turbulent times and have written some very powerful protest songs—”Ohio” and “Southern Man,” for example. So how do you view the responsibilities of being an artist in the years to come?

NY: This time is very similar to the ’60s, as far as I can tell. The artists always reflect the times, so there’s a lot to think about, a lot of unknowns, a lot of things that are describable. This is the closest I’ve seen to the kind of ambience that made the ’60s happen. It’s not about the artist having a responsibility to do anything. They have to be artists and express themselves and everything will work out fine. It’s all going to be great. The youth of this country are not behind what is going on. We all know that. If you looked at a political map of the United States 25 and under, it’s all-revealing. It’s a unified map.

MJ: What scares me is this rift in our understanding of one another. You have viewpoints so far apart, so colored by anger and frustration, that it’s very hard to find common ground. Do you have thoughts for how we might connect?

NY: It’s gonna happen. We had the Vietnam War in the ’60s, and there was a draft. The students didn’t believe in it, and it unified them. That brought the people together and made the ’60s like they were. The youth were very unified against the status quo—against the old line and the new old line. It’s the same exact thing today. Social media and young people, art, music, all communications make this one of the most active times for activism. It will be a time of change.

MJ: Speaking of activism, there’s your new song “Indian Giver,” about Standing Rock. What’s your view on the standoff?

NY: It’s injustice. It’s wrong. The pipeline companies didn’t get the permission. They didn’t do the things they should have done in the first place. They tried to just bully their way through there and they got stopped. But they’re not really stopping.

MJ: It’s become a new point of reckoning in the history of how Native Americans are treated.

NY: Five hundred years later we’re still doing it. This is a moment where we’re either going to reaffirm that’s what we do, that’s who we are, or we’re going to start moving toward change. A change won’t come easy, because there’s a lot of big money that doesn’t care about any of this. Standing Rock is the beginning of something. It’s a moment in history. We really have to grab it and go with it. We may only be halfway through the actual “Standing Rock” part, but it’s more than that—it’s the lessons of Standing Rock, of what you can do. How much can you make change happen? How long can you slow things down? How much attention can you bring to things that are unjust, unfair, in many cases illegal? Just exposing it, that’s the job of the social media, the musicians, the people who care, the real protectors around the world. They don’t have to be at Standing Rock. They just have to say they’re with the people at Standing Rock, and tell other people that what’s going on there is wrong. Learn about it. See what happened. See what they actually did. You won’t see it on corporate media, you have to go to social media.

MJ: So, it looks like we’re out of time here. Is there anything else you’d like to say?

NY: We love Mother Jones. That’d be the last thing to say.

MJ: We love you, too.

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For Neil Young, the Trump Era Feels a Lot Like the ’60s

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October 29 vs. December 10: A Lesson in Editorial Judgment

Mother Jones

Today brings a reminder of the editorial judgment at work in our press corps. First, here is the New York Times on October 29, reporting on an ambiguous letter from FBI Director James Comey that literally added nothing to what we already knew:

And here is the New York Times on December 10, reporting on concrete news that the intelligence community believes a hostile foreign power played a major role in getting a game show host elected president of the United States:

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October 29 vs. December 10: A Lesson in Editorial Judgment

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A Terrifying Superbug Just Showed Up on a US Farm for the First Time

Mother Jones

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More than 70 percent of the antibiotics consumed in the United States go to livestock farms, one of the main triggers driving a rising crisis of antibiotic resistance in human medicine.

On Tuesday, researchers from Ohio State University published an alarming finding in a peer-reviewed journal: On a US hog farm, they found bacteria that can withstand a crucial family of antibiotics. Carbapenems, as they are known, are a “last line of defense” against bacterial pathogens that can resist other antibiotics, the paper notes. Worse still, the gene that allowed the bacteria to resist carbapenems turned up in a plasmid—small chunks of DNA found in bacterial cells. Plasmid-carried genes bounce easily from one bacterial strain to another, meaning that carbapenem resistance is highly mobilemaking it more likely to find its way into bacterial pathogens that infect people.

If this news sounds depressingly familiar, it’s because something very similar happened with another last-ditch antibiotic, colostin. About a year ago, Chinese researchers alarmed global public health authorities when they found a “plasmid-mediated” strain of colistin-resistant E. coli on a Chinese hog farm. As predicted, it quickly went global, and it turned up in the United States in a patient in May, as well as in a pig intestine identified by US Department of Agriculture researchers. In September, Rutgers and Columbia University researchers found a strain of E. coli with plasmid-carried resistance to colostin and carbapenems. The new Ohio State study marks the first time plasmid-borne carbapenem resistance has been found on a US farm, though it has turned up in livestock operations in Asia and Europe, the researchers write.

To see whether carbapenem resistance is taking hold on US hog farms, the researchers settled on a 1,500-sow confined operation that follows “typical US production practices,” which include giving newborn pigs a dose of an antibiotic called ceftiofur at birth, with the males getting a second dose when they’re castrated at six days. Interestingly, carbapenems are banned from use in US farms. But ceftiofur is a member of the cephalosporin family of antibiotics, which kills bacteria in a similar way to carbapenems, and the authors speculate that those ceftiofur doses “may provide significant selection pressure” for the emergence of carbapenem resistance. They found it in swabs taken from the the surfaces of the farrowing and nursery pens.

Interestingly, the pigs don’t get ceftiofur after those initial doses at birth, except to treat sickness. And at later stages of the pig-raising process, such as the finishing barns where pigs are fattened to slaughter weight, no carbapenem-resistant bacteria turned up. That’s likely because the absence of ceftiofur “likely removed antimicrobial selection pressure” for the resistant gene, causing it to lose its niche. That absence of carbapenem-resistant bacteria in the late-stage pigs is good news—it means the superbug is “unlikely to have entered the food supply through contamination of fresh pork products.”

But given how quickly the gene can jump from one bacterial strain to another, the study identified a ticking time bomb. Cephalosporins, the class of antibiotics that may have triggered the carbapenem-resistant bacteria on this particular farm, aren’t administered nearly as much as other antibiotics on US farms, but alarmingly their use jumped 57 percent between 2009 and 2014, according to the latest Food and Drug Administration numbers. And the Ohio State study settled on one typical US hog operation. Who knows what’s going on with the 21,000-plus others.

Over on the Natural Resources Defense Council blog, antibiotic-resistance expert David Wallinga notes that the bacteria that turned up in the Ohio State study is carbapenem-resistant Enterobacteriaceae, “one of the nastier superbugs.” He continues:

Infections with these germs are very difficult to treat, and can be deadly—the death rate from patients with CRE bloodstream infections is up to 50 percent. The CDC says these bacteria already cause 9,300 infections, and 600 deaths each year. To date, CRE infections occur mostly among patients in hospitals and nursing homes; people on breathing machines, or with tubing inserted into their veins or bladders are at higher risk, as are people taking long courses of certain antibiotics. But newer, more resistant kinds of CRE seem to be causing more problems outside hospitals, in communities and among healthier people.

Way back in 2012, the Obama administration introduced a new set of guidelines—that will finally go into full effect on January 1—designed to preserve antibiotics as a bulwark against dangerous infections by curbing their use on farms. As I show here, meat farms use about three times as much of these vital drugs as does human medicine. Yet the Obama guidelines are both voluntary and contain a huge loophole, which I tease out here. And now, even as terrifying superbugs continue appearing in the United States, we have a new president whose agriculture advisers have expressed nothing but hostility toward regulating food production.

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A Terrifying Superbug Just Showed Up on a US Farm for the First Time

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Donald Trump Is a Serial, Compulsive Liar

Mother Jones

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Donald Trump, eight days ago:

Donald Trump, in a legal filing five days later, as reported by the Washington Post’s Philip Bump:

Trump is a serial, compulsive liar. Soon he will be president of the United States.

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Donald Trump Is a Serial, Compulsive Liar

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Trump Releases Twitter White Paper on Trade

Mother Jones

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After hinting around for weeks, president-elect Donald Trump finally released a detailed, 7-part (!) tweetstorm about his plans to reform America’s mercantile policy:

The U.S. is going to substantialy reduce taxes and regulations on businesses, but any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. without retribution or consequence, is WRONG! There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units etc., back across the border. This tax will make leaving financially difficult, but these companies are able to move between all 50 states, with no tax or tariff being charged. Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS.

Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into their country (the U.S. doesn’t tax them) or to build a massive military complex in the middle of the South China Sea? I don’t think so!

At the risk of taking Trump literally, rather than seriously, I wonder if he actually thinks he can do this? It’s not as if the president is allowed to unilaterally slap a 35 percent tariff on Carrier air conditioners or Ford Fiestas, after all. If Trump invokes the appropriate “national emergency” authority, he could impose a tariff on all air conditioners or all cars. Or he could impose a tariff on all goods from Mexico or all goods from China. But I think that’s as far as his authority goes. He can’t simply decide to punish one particular company.1

In the case of Mexico, of course, he can’t do even this much unless he persuades Congress to exit NAFTA—and that has a snowball’s chance of happening. He could, in theory, impose a 35 percent tariff on, say, telecom equipment made in China, but that would send up howls of protest from American businesses and almost certain retribution from China.

So…what’s the plan here? The American business community, which would go ballistic over something like this, has been pretty quiet, which suggests they think it’s just blather. That’s my guess too. But I guess you never know. We overeducated elites like to say that stuff like this is just affinity politics—aka red meat for the rubes—but perhaps eventually we’ll learn that we should have taken Trump literally after all.

1As far as I know, anyway. But I would certainly appreciate a detailed explainer on this from someone who’s truly an expert.

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Trump Releases Twitter White Paper on Trade

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Trump Is Right: Our Generals Haven’t "Done the Job"

Mother Jones

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This story first appeared on the TomDispatch website.

President-elect Donald Trump’s message for the nation’s senior military leadership is ambiguously unambiguous. Here is he on 60 Minutes just days after the election.

Trump: “We have some great generals. We have great generals.”

Lesley Stahl: “You said you knew more than the generals about ISIS.”

Trump: “Well, I’ll be honest with you, I probably do because look at the job they’ve done. Okay, look at the job they’ve done. They haven’t done the job.”

In reality, Trump, the former reality show host, knows next to nothing about ISIS—one of many gaps in his education that his impending encounter with actual reality is likely to fill. Yet when it comes to America’s generals, our president-to-be is onto something. No doubt our three- and four-star officers qualify as “great” in the sense that they mean well, work hard, and are altogether fine men and women. That they have not “done the job,” however, is indisputable—at least if their job is to bring America’s wars to a timely and successful conclusion.

Trump’s unhappy verdict—that the senior US military leadership doesn’t know how to win—applies in spades to the two principal conflicts of the post-9/11 era: the Afghanistan War (now in its 16th year) and the Iraq War, which was launched in 2003 and (after a brief hiatus) is once more grinding on. Yet the verdict applies equally to lesser theaters of conflict, largely overlooked by the American public, that in recent years have engaged the attention of US forces—a list that would include conflicts in Libya, Somalia, Syria, and Yemen.

Granted, our generals have demonstrated an impressive aptitude for moving pieces around on a dauntingly complex military chessboard. Brigades, battle groups, and squadrons shuttle in and out of various war zones, responding to the needs of the moment. The sheer immensity of the enterprise across the Greater Middle East and northern Africa—the sorties flown, munitions expended, the seamless deployment and redeployment of thousands of troops over thousands of miles, the vast stockpiles of material positioned, expended, and continuously resupplied—represents a staggering achievement. Measured by these or similar quantifiable outputs, America’s military has excelled. No other military establishment in history could have come close to duplicating the logistical feats being performed year in, year out by the armed forces of the United States.

Nor should we overlook the resulting body count. Since the autumn of 2001, something like 370,000 combatants and noncombatants have been killed in the various theaters of operations where US forces have been active. Although modest by 20th-century standards, this post-9/11 harvest of death is hardly trivial.

Yet in evaluating military operations, it’s a mistake to confuse how much with how well. Only rarely do the outcomes of armed conflicts turn on comparative statistics. Ultimately, the one measure of success that really matters involves achieving war’s political purposes. By that standard, victory requires not simply the defeat of the enemy, but accomplishing the nation’s stated war aims, and not just in part or temporarily but definitively. Anything less constitutes failure, not to mention utter waste for taxpayers, and for those called upon to fight, it constitutes cause for mourning.

By that standard, having been “at war” for virtually the entire 21st century, the United States military is still looking for its first win. And however strong the disinclination to concede that Donald Trump could be right about anything, his verdict on American generalship qualifies as apt.

That verdict brings to mind three questions. First, with Trump a rare exception, why have the recurring shortcomings of America’s military leadership largely escaped notice? Second, to what degree does faulty generalship suffice to explain why actual victory has proved so elusive? Third, to the extent that deficiencies at the top of the military hierarchy bear directly on the outcome of our wars, how might the generals improve their game?

As to the first question, the explanation is quite simple: During protracted wars, traditional standards for measuring generalship lose their salience. Without pertinent standards, there can be no accountability. Absent accountability, failings and weaknesses escape notice. Eventually, what you’ve become accustomed to seems tolerable. Twenty-first-century Americans inured to wars that never end have long since forgotten that bringing such conflicts to a prompt and successful conclusion once defined the very essence of what generals were expected to do.

Senior military officers were presumed to possess unique expertise in designing campaigns and directing engagements. Not found among mere civilians or even among soldiers of lesser rank, this expertise provided the rationale for conferring status and authority on generals.

In earlier eras, the very structure of wars provided a relatively straightforward mechanism for testing such claims to expertise. Events on the battlefield rendered harsh judgments, creating or destroying reputations with brutal efficiency. Back then, standards employed in evaluating generalship were clear-cut and uncompromising. Those who won battles earned fame, glory, and the gratitude of their countrymen. Those who lost battles got fired or were put out to pasture.

During the Civil War, for example, Abraham Lincoln did not need an advanced degree in strategic studies to conclude that Union generals like John Pope, Ambrose Burnside, and Joseph Hooker didn’t have what it took to defeat the Army of Northern Virginia. Humiliating defeats sustained by the Army of the Potomac at the Second Bull Run, Fredericksburg, and Chancellorsville made that obvious enough. Similarly, the victories Ulysses S. Grant and William T. Sherman gained at Shiloh, at Vicksburg, and in the Chattanooga campaign strongly suggested that here was the team to which the president could entrust the task of bringing the Confederacy to its knees.

Today, public drunkenness, petty corruption, or sexual shenanigans with a subordinate might land generals in hot water. But as long as they avoid egregious misbehavior, senior officers charged with prosecuting America’s wars are largely spared judgments of any sort. Trying hard is enough to get a passing grade.

With the country’s political leaders and public conditioned to conflicts seemingly destined to drag on for years, if not decades, no one expects the current general in chief in Iraq or Afghanistan to bring things to a successful conclusion. His job is merely to manage the situation until he passes it along to a successor, while duly adding to his collection of personal decorations and perhaps advancing his career.

Today, for example, Army General John Nicholson commands US and allied forces in Afghanistan. He’s only the latest in a long line of senior officers to preside over that war, beginning with General Tommy Franks in 2001 and continuing with Generals Mikolashek, Barno, Eikenberry, McNeill, McKiernan, McChrystal, Petraeus, Allen, Dunford, and Campbell. The title carried by these officers changed over time. So, too, did the specifics of their “mission” as Operation Enduring Freedom evolved into Operation Freedom’s Sentinel. Yet even as expectations slipped lower and lower, none of the commanders rotating through Kabul delivered. Not a single one has, in our president-elect’s concise formulation, “done the job.” Indeed, it’s increasingly difficult to know what that job is, apart from preventing the Taliban from quite literally toppling the government.

In Iraq, meanwhile, Army Lt. General Stephen Townsend currently serves as the—count ’em—ninth American to command US and coalition forces in that country since the George W. Bush administration ordered the invasion of 2003. The first in that line, (once again) General Tommy Franks, overthrew the Saddam Hussein regime and thereby broke Iraq. The next five, Generals Sanchez, Casey, Petraeus, Odierno, and Austin, labored for eight years to put it back together again.

At the end of 2011, President Obama declared that they had done just that and terminated the US military occupation. The Islamic State soon exposed Obama’s claim as specious when its militants put a US-trained Iraqi army to flight and annexed large swaths of Iraqi territory. Following in the footsteps of his immediate predecessors Generals James Terry and Sean MacFarland, General Townsend now shoulders the task of trying to restore Iraq’s status as a more or less genuinely sovereign state. He directs what the Pentagon calls Operation Inherent Resolve, dating from June 2014, the follow-on to Operation New Dawn (September 2010 to December 2011), which was itself the successor to Operation Iraqi Freedom (March 2003 to August 2010).

When and how Inherent Resolve will conclude is difficult to forecast. This much we can, however, say with some confidence: With the end nowhere in sight, General Townsend won’t be its last commander. Other generals are waiting in the wings with their own careers to polish. As in Kabul, the parade of US military commanders through Baghdad will continue.

For some readers, this listing of mostly forgotten names and dates may have a soporific effect. Yet it should also drive home Trump’s point. The United States may today have the world’s most powerful and capable military—so, at least, we are constantly told. Yet the record shows that it does not have a corps of senior officers who know how to translate capability into successful outcomes.

That brings us to the second question: Even if Commander in Chief Trump were somehow able to identify modern-day equivalents of Grant and Sherman to implement his war plans, secret or otherwise, would they deliver victory?

On that score, we would do well to entertain doubts. Although senior officers charged with running recent American wars have not exactly covered themselves in glory, it doesn’t follow that their shortcomings offer the sole or even a principal explanation for why those wars have yielded such disappointing results. The truth is that some wars aren’t winnable and shouldn’t be fought.

So, yes, Trump’s critique of American generalship possesses merit, but whether he knows it or not, the question truly demanding his attention as the incoming commander in chief isn’t “Who should I hire (or fire) to fight my wars?” Instead, far more urgent is, “Does further war promise to solve any of my problems?”

One mark of a successful business executive is knowing when to cut your losses. It’s also the mark of a successful statesman. Trump claims to be the former. Whether his putative business savvy will translate into the world of statecraft remains to be seen. Early signs are not promising.

As a candidate, Trump vowed to “defeat radical Islamic terrorism,” destroy ISIS, “decimate Al Qaeda,” and “starve funding for Iran-backed Hamas and Hezbollah.” Those promises imply a significant escalation of what Americans used to call the “global war on terrorism.”

Toward that end, the incoming administration may well revive some aspects of the George W. Bush playbook, including repopulating the military prison at Guantanamo Bay, Cuba, and “if it’s so important to the American people,” reinstituting torture. The Trump administration will at least consider re-imposing sanctions on countries like Iran. It may aggressively exploit the offensive potential of cyberweapons, betting that America’s cyberdefenses will hold.

Yet President Trump is also likely to double down on the use of conventional military force. In that regard, his promise to “quickly and decisively bomb the hell out of ISIS” offers a hint of what is to come. His appointment of the uber-hawkish Lt. General Michael Flynn as his national security adviser and his selection of retired Marine Corps General James (“Mad Dog”) Mattis as defense secretary suggest that he means what he says.

In sum, a Trump administration seems unlikely to reexamine the conviction that the problems roiling the Greater Middle East will someday, somehow yield to a US-imposed military solution. Indeed, in the face of massive evidence to the contrary, that conviction will deepen, with genuinely ironic implications for the Trump presidency.

In the immediate wake of 9/11, George W. Bush concocted a fantasy of American soldiers liberating oppressed Afghans and Iraqis and thereby “draining the swamp” that served to incubate anti-Western terrorism. The results were beyond disappointing, while the costs exacted in terms of lives and dollars squandered were painful indeed. Incrementally, with the passage of time, many Americans concluded that perhaps the swamp most in need of attention was not on the far side of the planet but much closer at hand—right in the imperial city nestled alongside the Potomac River.

To a very considerable extent, Trump defeated Hillary Clinton, the preferred candidate of the establishment, because he advertised himself as just the guy disgruntled Americans could count on to drain that swamp. Yet here’s what too few of those Americans appreciate, even today: War created the swamp in the first place. War empowers Washington. It centralizes. It provides a rationale for federal authorities to accumulate and exercise new powers. It makes government bigger and more intrusive. It lubricates the machinery of waste, fraud, and abuse that causes tens of billions of taxpayer dollars to vanish every year. When it comes to sustaining the swamp, nothing works better than war.

Were Trump really intent on draining that swamp—if he genuinely seeks to “Make America Great Again”— then he would extricate the United States from war. His liquidation of Trump University, which was to higher education what Freedom’s Sentinel and Inherent Resolve are to modern warfare, provides a potentially instructive precedent for how to proceed.

But don’t hold your breath. All signs indicate that, in one fashion or another, our combative next president will perpetuate the wars he’s inheriting. Trump may fancy that, as a veteran of Celebrity Apprentice (but not of military service), he possesses a special knack for spotting the next Grant or Sherman. But acting on that impulse will merely replenish the swamp in the Greater Middle East, along with the one in Washington. And soon enough, those who elected him with expectations of seeing the much-despised establishment dismantled will realize that they’ve been had.

Which brings us, finally, to that third question: To the extent that deficiencies at the top of the military hierarchy do affect the outcome of wars, what can be done to fix the problem?

The most expeditious approach: Purge all currently serving three- and four-star officers. Then, make a precondition for promotion to those ranks confinement in a reeducation camp run by Iraq and Afghanistan war amputees, with a curriculum designed by Veterans for Peace. Graduation should require each student to submit an essay reflecting on these words of wisdom from Grant himself: “There never was a time when, in my opinion, some way could not be found to prevent the drawing of the sword.”

True, such an approach may seem a bit draconian. But this is no time for half measures—as even Donald Trump may eventually recognize.

Andrew J. Bacevich is professor emeritus of history and international relations at Boston University. His most recent book is America’s War for the Greater Middle East: A Military History.

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Trump Is Right: Our Generals Haven’t "Done the Job"

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