Paul Krugman: Austerity, Italian Style

Two months ago, when Mario Monti stepped down as Italy’s prime minister, The Economist opined that “The coming election campaign will be, above all, a test of the maturity and realism of Italian voters.” The mature, realistic action, presumably, would have been to return Mr. Monti — who was essentially imposed on Italy by its creditors — to office, this time with an actual democratic mandate.

Well, it’s not looking good. Mr. Monti’s party appears likely to come in fourth; not only is he running well behind the essentially comical Silvio Berlusconi, he’s running behind an actual comedian, Beppe Grillo, whose lack of a coherent platform hasn’t stopped him from becoming a powerful political force.
 

India's rice revolution: Chinese scientist questions massive harvests

Revelations in last week's Observer Food Monthly have created controversy over the truth of record yields

John Vidal
The Observer, Saturday 23 February 2013 07.06 EST
China's leading rice scientist has questioned India's claims of a world record harvest, following a report in last week's Observer of astonishing yields achieved by farmers growing the crop in the state of Bihar.

Professor Yuan Longping, known as the "father of rice", said he doubted whether the Indian government had properly verified young Indian farmer Sumant Kumar's claim that he had produced 22.4 tonnes of rice from one hectare of land in Bihar in 2011.

Yuan, director-general of China's national rice research centre and holder of the previous record of 19.4 tonnes a hectare, asked: "How could the Indian government have confirmed the number after the harvesting was already done?" 
 

Sequestration Sacrifices Jobs to Save Billionaire Tax Breaks

by John Nichols 

 

There is a great deal of talk about how Republican senators have gone off the rails in their opposition to the nomination of former Senator Chuck Hagel to serve as Secretary of Defense. And there have been some bizarre deviations, with senators making pronouncements based on internet rumors and unfounded speculation.

But none of the fantastical filibustering of the Hagel fight can compare with the delusional dialogue regarding the federal budget.
 

Washington’s Stupid, Destructive Game

By Richard Eskow | February 24, 2013 

It’s Monday morning in America. That means we’re about to endure another week of pointless debate over the precise methods by which our federal government will impose more needless misery on the hapless population, instead of addressing its eminently fixable economic problems.

Readers of our nation’s newspapers might be forgiven for believing that the citizens of our nation have been condemned to some sort of quotidian hell as punishment for our collective crimes, where we must suffer the pangs of deprivation while listening to endless debates about how best to compound our misery.

4 Bogus Right-Wing Theories About Poverty, and the Real Reason Americans Can’t Make Ends Meet (Hard Times USA)

By Joshua Holland

January 22, 2013  |  When is a secret not at all secret? Consider the fact that one in three Americans are poor, if we define it as struggling to cover the basic necessities of life. That's according to a Census Bureau analysis, and it was reported in the New York Times, but I have yet to hear a politician or pundit make reference to this eye-opening reality of our vaunted “new economy.”

In 2011, the Census Bureau took a new look at the “near-poor” – Americans with incomes between 100 and 150 percent of the poverty line. They found that this group, most of whom earn paychecks and pay taxes, represented a whopping one in six U.S. households – a figure that was almost twice as high as had previously been thought.

When those under the poverty line are added, Census found that a stunning 33 percent of the population was struggling to make ends meet in 2010. Analyzing the Census data, the Working Poor Project suggested [3] that the number of near-poor, which they define as those making between 100 and 200 percent of the poverty line, continued to inch up in 2011 as many returning to work in this sluggish recovery have been forced to settle for lower-paying service jobs.

When You're Cutting Social Security, 'Wealthy' Begins at $25K

by Jim Naureckas

Here's a proposal for Social Security that was on the New York Times' op-ed page Wednesday (2/20/13):

The top third of beneficiaries (by lifetime income) [would] receive no annual cost-of-living adjustment in retirement. The middle third would get half of today’s adjustment, and the bottom third would receive the same annual increase they do now. Such a reform…would reduce Social Security spending by more than a tenth over a decade and fix the program’s long-term financing.

This is part of Paul Ryan adviser Yuval Levin's attempt to find "common ground" on the entitlement issue: "Both sides should agree at least to spend less money on the wealthy." So who are these "wealthy" people who would be getting a benefit cut equal to the rate of inflation every year? According to the SSA, about 34 percent of people over 65 have family incomes of $50,000.