Now We Know Why Huge TPP Trade Deal Is Kept Secret From The Public

A key section of the secret Trans-Pacific Partnership (TPP) trade agreement has been leaked to the public. The New York Times has a major story on the contents of the leaked chapter and it’s as bad as many of us feared.

Now we know why the corporations and the Obama administration want TPP, a huge “trade” agreement being negotiated between the United States and 11 other countries, kept secret from the public until it’s too late to stop it.

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Is SEC Refusing To Follow Law And Issue CEO Pay-Ratio Rules?

One part of the 2010 Dodd-Frank Wall Street Reform law requires the Securities and Exchange Commission (SEC) to set up rules requiring companies to disclose the median annual total compensation of all employees, the total annual compensation of the chief executive officer, and the ratio of the median employee pay to the CEO’s pay. It’s 2015 and the agency still has not done so.

In December, 16 Senators sent a letter to SEC Chair Mary Jo White asking for the SEC to vote on the final pay-ratio rule before the end of the first quarter of 2015.

From the letter:

Pay ratio disclosure helps investors evaluate the relative value a CEO creates, which facilitates better checks and balances against insiders paying themselves runaway compensation. When a company’s performance improves but only the CEO is rewarded, for example, investors should know, so they can ask what kinds of incentives this creates for the company’s future performance. Or when a CEO asks for a raise while giving other employees a pay cut, investors should have this information to help them evaluate whether this is value creation or simply value capture by insiders – especially in an environment where incomes for the top 1 percent have grown by more than 86 percent over the last 20 years while incomes for everyone else have grown by less than 7 percent.

(Click here for the full text of the letter.)

The end of the first quarter is two weeks away. There’s still no CEO Pay-Ratio rule.

Timeline and Revolving Door

What is the reason for the delay/refusal? Last month’s post, “Is The SEC Defying Dodd-Frank Law On Pay-Ratio Rule?”, included a timeline and asked:

Is the SEC simply defying the law? Is everyone at the SEC hoping for a lucrative “revolving door” job offer from Wall Street, as long as they “play ball”?

Are SEC regulators simply “playing ball,” and hoping for lucrative corporate rewards when they leave government? As more and more time passes, it looks more and more like this is the case.

How does the revolving door work? In a post from 2012, Matt Stoller wrote about how the real money is made after leaving government. If “you were a team player, then you’ll have plenty of money and opportunity.” In last year’s post, “Eric Cantor Goes To His Reward,” I wrote about how Eric Cantor —  Wall Street’s BFF while in Congress — took two whole weeks after leaving office to take a job where he “will receive a huge, fat, lucrative, awe-inspiring, 1-percent-making, mansion-jet-and-yacht-buying, zillion-figure paycheck from his Wall Street/corporate constituents,” as vice chairman and managing director of investment bank Moelis & Co. I wrote, “It typically takes longer than two weeks to negotiate a senior position like this one, if you know what I mean.”

Wall Street takes good care of its friends in government. Is this what’s going on at the SEC? Previous SEC head Mary Schapiro certainly did well for herself after leaving the position. A while after that, even more. As NYTimes’ Dealbook put it in, “Former Chief of S.E.C. to Shift Consulting Job,”:

Like many S.E.C. officials before her, Ms. Schapiro spun her government résumé into a lucrative private sector role at Promontory, which has advised some of the world’s most powerful corporations and banks, including Morgan Stanley and the Vatican Bank.

The SEC can just issue the rule. So why hasn’t it?

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

TPP Is Only Secret From You – But Trust Us, It’s Good For You

How far have we drifted from our original intent to be a constitutional republic ruled by We the People?

U.S. Constitution, Article 1, Section 8: “The Congress shall have Power … To regulate Commerce with foreign Nations…”

But today? Not so much. The following quote is from Politico Pro, which is behind a paywall. The minority leader of the U.S. House of Representatives would like to know what is in the Trans-Pacific Partnership (TPP) – a still-secret treaty that regulates commerce with foreign nations:

“We have to see TPP. It may not be the final agreement, but we have to see what it is,” Pelosi told reporters after the first of several House Democratic Caucus meetings to dig into details about the proposed pact with Japan and 10 other countries in the Asia-Pacific region.

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Over 100 Legal Scholars Warn About TPP Dangers

Over 100 law professors sent an open letter to Congress and the U.S. Trade Representative (USTR) saying they need to “protect the rule of law and the nation’s sovereignty” in trade agreements like the Trans-Pacific Partnership (TPP).

While TPP is still secret, leaks and precedent indicate that it will contain provisions allowing giant, multinational corporations to bypass our country’s legal system. These provisions will allow these multinational corporations to sue governments, including ours, in “corporate courts” if they decide to pass laws and regulations that restrain the profits of these giant corporations, such as efforts to help citizens quit smoking.

The provisions in question are called investor-state dispute settlement (ISDS) and let corporations take cases to a tribunal made up of corporate attorneys instead of civil courts. These attorneys will then decide if countries have passed laws or imposed regulations, including health, environmental, labor, consumer and other protections that cause these companies to lose profits.

The law professors’ letter asks Congress and the USTR to ensure that language is not included in proposed trade agreements like the TPP.

The letter concludes:

ISDS threatens domestic sovereignty by empowering foreign corporations to bypass domestic court systems and privately enforce terms of a trade agreement. It weakens the rule of law by removing the procedural protections of the justice system and using an unaccountable, unreviewable system of adjudication.

The scholars’ statement is available online at: http://bit.ly/1EA5zeO and the letter itself is available at http://bit.ly/1KX6WYB.

The letter was organized and released by the Alliance for Justice.

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This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Will Media Continue Blackout Of Progressive Budget?

Next week, progressives in Congress will release their annual budget proposal. They do this every year, and every year the national news media largely ignores it. Will the elite media report on it this year? Make some noise, and maybe they will.

There are alternative ways to run a government budget, but they are just excluded from the national debate. The elite position creates a “conventional wisdom” that there are no alternatives. But America’s top income tax rate used to be more than 90 percent, to combat inequality and the threat inequality poses to democracy — and the rich still got richer. At the same time, the corporation tax rate was 50 percent, and corporations paid 32 percent of all taxes. That has dropped to just 8.9 percent now, and Congress and the president are now proposing to reduce the corporate tax rate dramatically — again. As a result of these cuts, inequality has soared, budgets have been thrown out of balance, schools have declined, we no longer even maintain — never mind modernize — our crucial infrastructure.

We can have a budget that serves “We, the People.” It’s about priorities. Frankly, in the richest country in history, it is possible to make sure that everyone has a job, good medical care, a good retirement, a good free education, and keep our infrastructure modernized and up-to-date — and all while making sure that the budget is balanced. It really is just a matter of priorities — choices about how we distribute the country’s resources. Unfortunately for 99 percent of us, “we” choose intense inequality and a vast military machine.

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A Trade Campaign Built On Four Pinocchios

A newly launched public relations campaign in support of trade promotion authority, a.k.a. “fast track,” and the Trans-Pacific Partnership (TPP) calls itself “the Progressive Coalition for American Jobs.” At its foundation is a set of misleading (at best) claims that begin with a four-Pinocchio whopper.

It is unclear who is in the coalition, why they call themselves “progressive” when progressives are opposed to TPP and fast track, and flat-out wrong that the trade agreement is going to produce “American jobs.”

American Jobs? “Four Pinocchios”

The “Progressive Coalition for American Jobs” sent out a press release earlier this week promising that the TPP will “support hundreds of thousands of new jobs in the United States.” This is the same promise that Clinton used to sell NAFTA, the North American Free Trade Agreement, and we know how that turned out. (Hint: lost jobs, lost wages, lost factories, lost industries, devastated regions of the country, increased trade deficits and a few CEOs and Wall Street types made vastly richer.) (See also, Obama’s Trans-Pacific Partnership Promises Echo Clinton’s On NAFTA.)

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How Our Trade Policies Kill Jobs

Trade is great. We all trade. A lot of us trade labor for money that buys other things. A farmer trades corn for money that buys other things, and so on. No one is “against trade.”

But is anything called “trade” always good for all involved? Imagine you’re a farmer and you make a deal to trade corn and wheat to get money for a new tractor. So the farmer orders a new tractor, but the “trade partner” never buys any corn or wheat. After a while the “trade partner” shows up with a big bill, saying the farmer owes money for the tractor. And then the farmer finds out that the “trade partner” plans to use the proceeds from the sale of the tractor to grow their own corn.

In modern terms, we would say that the farmer was “running a trade deficit.” How much damage do you think that “trade deficit” is doing to that farmer, and the farmer’s ability to make a living in the future? How long do you think that farmer would let that “trade agreement” continue?

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Anti-Fast-Track Momentum Builds

Opponents of fast track and the Trans-Pacific Partnership (TPP) are gaining momentum. In spite of a virtual media blackout, public awareness of the coming trade deal is increasing.

More and more public-interest organizations are organizing and denouncing the rigged fast-track approval process and TPP trade agreement. One after another, members of Congress are announcing opposition to fast track and demanding that trade problems like currency manipulation be covered by the TPP agreement.

Meanwhile, the expected fast track bill has been delayed again.

Fast Track “Stuck”

Fast track is a process under which Congress agrees to bypass its duty to define, consider, debate and approve trade deals. Fast track limits discussion and debate and gives Congress only 90 days in which to bring the deal up for a vote. It is a rigged process designed to ensure that the Trans-Pacific Partnership (TPP) trade agreement, the “history’s largest trade deal“, is pushed through Congress before the public has time to fully analyze, understand and consider its ramifications and organize opposition if opposition is warranted.

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Silicon Valley Rising Fights for Worker Justice

Silicon Valley is an area of contrasts. When you stop at a traffic light in Silicon Valley you will often find a Maserati or Tesla on one side of you and a beaten up, 15-year-old Accord on the other. It seems there are more high-end Mercedes, Jaguars, Bentleys or the occasional Maybach than in other areas.

Silicon Valley companies, many run by stock-billionaires, pay a lot at the top, and squat at the bottom. There are the lucky employees, and a huge number of “contractors” – employees who are not called employees. The employees that reach over a certain age are discarded.

There are not a lot of people in the space between Silicon Valley’s top and its bottom. One in three Silicon Valley workers cannot even afford to live anywhere within a one-hour drive. The regular three-bedroom house costs a million dollars and don’t even ask about the rents (starting at more than $2,000 a month for a one bedroom apartment), but on the streets in working-class neighborhoods there are so many cars parked that you can barely pass – because there are so many people and families crammed into the housing. And, of course, the traffic is terrible, but you have to use a car because public transportation is cut back due to tax-dodging by giant companies like those in Silicon Valley.

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High-Speed Rail Is High-Speed Growth We All Should Demand

While construction of other high-speed rail lines around the country has been blocked, California’s line between San Francisco and Los Angeles is actually getting built. This single project is triggering a lot of potential American hiring.

As it proceeds, we should build pressure to bring high-speed transportation – and the jobs and economic boom that will follow – to other gridlocked areas of the country.

California’s highways and airways are reaching capacity, and the population is only expected to grow – a lot. You can only build so many highways and new airports. And more and more cars and planes are not particularly good for the environment.

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The Senate Blockbuster Showdown On Trade The Media Missed

Eight senators on Thursday let the country know there is going to be a fight over fast-track trade authority and the Trans-Pacific Partnership.

Sens. Sherrod Brown (D-Ohio), Bob Casey (D-Pa.), Tammy Baldwin (D-Wis.), Jeff Merkley (D-Ore.), Edward Markey (D-Mass.), Sheldon Whitehouse (D-R.I.), Elizabeth Warren (D-Mass.), and Bernie Sanders (I-Vt.) took to the Senate floor to speak about fast track, TPP and fair trade.

There was apparently not a single report of this in the nation’s news media, continuing the blackout of news on fast track and TPP.

A fight is coming because past trade deals have cost jobs and wages, devastated entire regions, and accelerated corporate power and income/wealth inequality – which it is becoming clear was the intent. Whitehouse, for example, said parts of TPP are “a question of pure raw economic power by massive corporate interests being used to make governments knuckle under.”

Sanders said, “Enough is enough. This country now is in a major race to the bottom.”

The Speeches

First up on Thursday was Ohio Sen. Sherrod Brown, who began by saying that trade agreements are often “… pushed through this body [the Senate] so quickly that the corporations pushing them hope we won’t notice that these agreement are loaded with corporate handouts that weaken our nation’s ability to chart its own course.”

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