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Showing posts with label economic crisis. Show all posts
Showing posts with label economic crisis. Show all posts

07 November 2010

Latest Reports from Recovery Act Recipients on Recovery.gov 30OKT10

SOME WILL CALL THIS PROPAGANDA, but this is an attempt by the WH to explain how many jobs are being created by the Recovery Act. Click the header to get the full report including information on your state....for the people of Ohio and Wisconsin, your governors elect have just pissed away hundreds of millions of dollars in Recovery Act funding because they don't want jobs in your states created by government investment....see my earlier post NEW GOP GOVERNORS KILL $1.2 BILLION IN HIGH-SPEED RAIL JOBS 6NOV10

This from the White House

The independent Recovery Accountability and Transparency Board just posted the latest round of reports from recipients of Recovery Act dollars on Recovery.gov.  These reports provide an up-close snapshot of how a portion of Recovery Act spending was put to work creating jobs and driving economic growth last quarter.  Thanks to these reports, you can see when certain projects started, where they’re taking place and how many people are being directly paid to work on them with Recovery Act dollars.
But when looking at these reports, it’s important to know what you are seeing – especially when it comes to the roughly 670,000 jobs recipients reported last quarter as part of this process.
Just 20 Percent of Spending
While there is already an unprecedented amount of public information available on Recovery.gov, Congress asked that for a portion of spending - specifically in areas like infrastructure projects and education spending – we go a layer deeper and collect these reports directly from recipients on how they are putting Recovery Act dollars to work.  So while these new reports posted today offer an extraordinary level of detail, they only cover about 20 percent of Recovery Act spendingto-date.  That means the job counts that come with the reports don’t include things like:
  • jobs from Recovery Act tax relief, including significant business tax grants being used to fund clean energy manufacturing projects across the country
  • jobs from Recovery Act aid like Pell Grantsand food assistance (some of the biggest and most direct job creators because the money is quickly put back into the economy)
  • jobs from Recovery Act small business loans
Only Salaries Directly Paid with Recovery Dollars
Second, keep in mind that recipients are only required to report on the jobs where salaries are being directly paid using Recovery Act dollars – not the overall job impact of their project.  So that means the job counts don’t include things like:
  • jobs created further down the supply chain by a Recovery Act project.  For example, new hires at a plant supplying asphalt for Recovery Act road projects or new hires at a wind blade manufacturing plant supplying a Recovery Act wind farm.
  • jobs created at businesses benefiting from Recovery Act projects.  For example, the fast food worker hired because of the growing lunch rush due to a Recovery Act project underway across the street.
Doesn’t Include Jobs from New Education Funding
Third, while it’s clear from these reports that the Recovery Act is still supporting hundreds of thousands of education jobs nationwide, it’s no longer the only initiative funding education jobs.  This summer, as states continued to deal with ongoing budget shortfalls, the Administration worked with Congress to secure additional education funding through the Education Jobs Bill.  States are just beginning to put those new funds to work as their Recovery Act education funding winds down and we expect to see a ramp-up in jobs reported as a result of the Bill in the months ahead – but the jobs created or saved from the Education Jobs Bill are not included in these reports.
Honest Efforts, But Not Perfect
And finally, keep in mind that these are no ordinary government-released reports.  They come directly from the recipients of Recovery dollars themselves -- people like local government employees, community organization administrators and small business owners who don’t count jobs for a living.  While these are honest efforts to be as accurate as possible, we know they’re not perfect.  But they are an important part of our continued commitment to providing unprecedented accountability and transparency of the Recovery Act at work.
So with all of that said, just how many jobs is the Recovery Act responsible for?  According to leading independent economists, when you account for the full job impact of the Recovery Act – including direct, indirect and induced jobs – and factor in every dollar of spending – including tax relief and aid to individuals, the Recovery Act is actually responsible for about 3 million jobs nationwide.  (To see what that means for your state, check out page 49 of this report.)
We’re continuing to work every day to create even more jobs - but it’s clear from these new reports that Recovery Act investments are having a meaningful impact for families and communities across the country.
Ed DeSeve is Special Advisor to the President for Recovery Implementation

06 November 2010

New GOP Governors Kill $1.2 Billion In High-Speed Rail Jobs 6NOV10

THE STUPIDITY OF THESE DECISIONS IS BOTH BREATHTAKING AND NOT UNEXPECTED. Both states have high unemployment, these projects would create jobs both in the construction of the rail lines, the trains, and in the operation of the lines and support services , provide a much needed alternative to air travel and the projects are paid for by the federal government. They are delivering to their electorate just what they promised (see my earlier post 'ARE TEA-PARTIERS BEING TAKEN FOR A RIDE?' 30OKT10). They are ideologically opposed to government investment for creating new jobs. I guess they are waiting for the wealthy in this country to begin creating jobs with their bush era tax cut money they have been receiving during this recession.....

Govs. elect John Kasich (R-OH) and Scott Walker (R-WI).
Republicans who were elected on Tuesday are beginning to deliver on their campaign promises to kill America’s future. Within hours of declaring victory, the incoming tea-party governors of Wisconsin and Ohio stood fast on pledges to kill $1.2 billion in funding for high-speed rail in their states. The funding, part of the American Recovery and Reinvestment Act, will revert to the federal government for investment in other states — unless Republicans in Congress are able to kill that, too. Walker warned he would fight President Obama to keep the Milwaukee-Madison link killed “if he tries to force this down the throats of the taxpayers.” Kasich — who called the high-speed rail project linking Cleveland, Columbus, and Cincinnati “one of the dumbest ideas” he’s ever heard — used his victory speech to announce, “That train is dead“:
Scott Walker, the incoming governor of Wisconsin, for instance, vowed on Wednesday to carry out a campaign pledge to kill a proposed high-speed rail link between Milwaukee and Madison, part of a larger project to create a high-speed rail corridor across the upper Midwest, from Minneapolis to Chicago. The project was to be fully paid for with $810 million in federal stimulus funds. Mr. Walker said he wanted the money spent on roads, although under the terms of the grants, such a use of the funds is prohibited.
The newly elected Republican governor of Ohio, John Kasich, who ousted Ted Strickland, a Democrat, has also reiterated a campaign pledge to kill a $400 million stimulus-funded rail project in his state. “Passenger rail is not in Ohio’s future,” Mr. Kasich said at his first news conference after the election. “That train is dead.
In addition to their ideological opposition to creating new jobs through government investment, both Walker and Kasich question the reality of climate science, like other new Republican governors threatening clean energy projects across the nation.

16 October 2010

Setting the Spending Record Straight 12OKT10

TOO bad the Wall Street Journal isn't objective enough to call the wealthy Americans who want the government to continue their bush era tax cuts to task for not creating jobs here in the U.S. while they have been receiving these tax cuts during the current economic crisis. Instead they choose to promote the greed that brought about this crisis, and to use their paper to spread the lies and deception of the gop and tea-baggers right before the November elections.
 
The Wall Street Journal today ran an editorial bemoaning the increase in federal spending between FY 2008 and FY 2010.
What it doesn’t factor in, or provide context for, is the chain of events that led to these increases.
First, a large driver of federal spending was the onset of the economic collapse in late 2008 as automatic aid to people hit hard by the downturn, such as unemployment insurance and food stamps, kicked in. With more people temporarily eligible for these mandatory programs and less revenue coming in, the deficit increased substantially in FY 2009, which began on October 1, 2008.  In fact, on January 7, 2009 -- before President Obama was sworn in -- the Congressional Budget Office (CBO) issued its Economic and Budget Outlook for Fiscal Years 2009-2019. In that document, CBO projected that government spending would rise from 20.9 percent of GDP in FY 2008 to 24.9 percent of GDP in FY 2009.  In reality, government spending in FY 2009 turned out to be roughly what had been predicted a year earlier (24.7 percent). That is to say, this big increase of government spending occurred because of the economic meltdown the Administration inherited and the accompanying automatic increase in programs that assist those most hurt by it -- and this was already fully baked into the fiscal cake when the President took office.
Second, also in response to the recession, we needed to help close the huge gap between what the economy could produce and what it was producing in order to prevent a second Great Depression and even more devastating job losses. That’s why economists from across the spectrum supported a significant stimulus measure, and why the President signed into law the Recovery Act.
While the Recovery Act has become a subject of intense debate, it clearly has brought our economy back from the brink. Instead of four quarters of economic contraction, we now have had four quarters of economic growth. Instead of losing 750,000 jobs a month, we’ve now had nine months of private sector job growth. Recovery Act investments not only saved the jobs of thousands of teachers, firefighters, and police officers, but are also laying the foundation for economic growth in years to come as new roads, bridges, power plants, and rail are built. The Recovery Act added to government spending, but it was essential and beneficial to the nation’s economy.
While measures like these were needed to stave off recession and strengthen the economy, we also must restore fiscal sustainability over the medium- and long-term. However, doing so is made much more difficult because of past fiscal irresponsibility -- the previous Administration’s failure to pay for two large tax cuts and the Medicare prescription drug benefit.
What is required of us now is to make the tough choices to put our fiscal house in order.
The President has put forward a budget that contains more than $1 trillion in deficit reduction. He has put in place a three-year freeze on non-security discretionary spending -- in nominal terms based on levels that do not include any Recovery Act funding -- and vowed to enforce it with his veto pen. He convened a bipartisan fiscal commission to devise a plan to get our budget in primary balance and our country on a long-term, sustainable course, and looks forward to hearing back from them in December. Looking to the long term where the growth of health care costs is the single biggest driver of increased spending, the President signed into law the Affordable Care Act, which will reduce the deficit by more than $100 billion in its first decade and more than $1 trillion in the second.
The other side’s response to our fiscal imbalance is to make it worse by supporting tax cuts for the wealthiest 2 percent of households -- cuts that will increase our deficits by nearly $700 billion and do nothing at all to stimulate economic growth.
What should worry those concerned about government spending and our fiscal situation are not slanted arguments about how we got here, but plans like these that will put us deeper into a hole.
Kenneth Baer is the Associate Director for Communications and Strategic Planning at OMB

10 September 2010

President Obama on the Economy in Cleveland: "The America I Believe In" 8SEP10

Read the Transcript  |  Download Video: mp4 (431MB) | mp3 (41MB)
This afternoon the President was in Cleveland, Ohio, the city where House Republican Leader Boehner recently put forth his party’s priorities for the economy.  In his remarks,  the President laid out a stark contrast between policies that help the economy work for the middle class, and the policies that allowed special interests to run amok -- and to run our economy into a ditch.  He spoke about the need to strengthen our recovery in both the short and long terms by investing in America’s roads, bridges and runways, by helping small businesses grow and hire, and by giving certainty to businesses through a permanent incentive to innovate and create good jobs in America in the Research and Experimentation Tax Credit.
But before all that he talked about the foundation of the values that guide his decisions:
Yes, our families believed in the American values of self-reliance and individual responsibility, and they instilled those values in their children.  But they also believed in a country that rewards responsibility.  A country that rewards hard work.  A country built upon the promise of opportunity and upward mobility. 
They believed in an America that gave my grandfather the chance to go to college because of the GI Bill.  An America that gave my grandparents the chance to buy a home because of the Federal Housing Authority.  An America that gave their children and grandchildren the chance to fulfill our dreams thanks to college loans and college scholarships.
It was an America where you didn’t buy things you couldn’t afford; where we didn’t just think about today – we thought about tomorrow.  An America that took pride in the goods it made, not just in the things it consumed.  An America where a rising tide really did lift all boats, from the company CEO to the guy on the assembly line.
That’s the America I believe in.  That’s what led me to work in the shadow of a shuttered steel plant on the South Side of Chicago when I was a community organizer.  It’s what led me to fight for factory workers at manufacturing plants that were closing across Illinois when I was a Senator.  It’s what led me to run for President – because I don’t believe we can have a strong and growing economy without a strong and growing middle-class.
The Crowd in Parma, Ohio Listens to President Obama Speak About the Economy The audience listens as President Barack Obama delivers remarks on the economy at Cuyahoga Community College in Parma, Ohio September 8, 2010. (Official White House Photo by Chuck Kennedy)
Looking back on his first 18 months in office, the President spoke about how he had “hoped for a chance to get beyond some of the old political divides – between Democrats and Republicans, Red states and Blue states – that had prevented us from making progress.  Because although we are proud to be Democrats, we are prouder to be Americans – and we believed then and we believe now that no single party has a monopoly on wisdom. “   But he also explained that he ran because we needed change, and while ideas on how to do that were welcome from anywhere, simply continuing on with the broken status quo was not a contribution to moving us forward:
A few weeks ago, the Republican leader of the House came here to Cleveland and offered his party’s answer to our economic challenges.  Now, it would be one thing if he had admitted his party’s mistakes during the eight years that they were in power, if they had gone off for a while and meditated, and come back and offered a credible new approach to solving our country’s problems.
But that’s not what happened.  There were no new policies from Mr. Boehner.  There were no new ideas.  There was just the same philosophy that we had already tried during the decade that they were in power -- the same philosophy that led to this mess in the first place:  Cut more taxes for millionaires and cut more rules for corporations.
Instead of coming together like past generations did to build a better country for our children and grandchildren, their argument is that we should let insurance companies go back to denying care for folks who are sick, or let credit card companies go back to raising rates without any reason.  Instead of setting our sights higher, they’re asking us to settle for a status quo of stagnant growth and eroding competitiveness and a shrinking middle class.
  
Cleveland, that is not the America I know.  That is not the America we believe in.  (Applause.)
A lot has changed since I came here in those final days of the last election, but what hasn’t is the choice facing this country.  It’s still fear versus hope; the past versus the future.  It’s still a choice between sliding backward and moving forward.
The President’s speech was sweeping, and it is well worth reading in full, where he speaks to the misguided Republican proposal to grant permanent, budget-busting tax cuts to the wealthiest Americans as we touched on this afternoon, and elaborates on his own proposals as we touched on this morning.  In closing, he took a step back:
I know that folks are worried about the future.  I know there’s still a lot of hurt out here.  And when times are tough, I know it can be tempting to give in to cynicism and fear and doubt and division -– and just settle our sights a little bit lower, settle for something a little bit less.  But that’s not who we are, Ohio.  Those are not the values that built this country.
We are here today because in the worst of times, the people who came before us brought out the best in America.  Because our parents and our grandparents and our great-grandparents were willing to work and sacrifice for us.  They were willing to take great risks, and face great hardship, and reach for a future that would give us the chance at a better life.  They knew that this country is greater than the sum of its parts -– that America is not about the ambitions of any one individual, but the aspirations of an entire people, an entire nation.  (Applause.)
That’s who we are.  That is our legacy.  And I’m convinced that if we’re willing to summon those values today, and if we’re willing to choose hope over fear, and choose the future over the past, and come together once more around the great project of national renewal, then we will restore our economy and rebuild our middle class and reclaim the American Dream for the next generation.  (Applause.) 
The President Waves to the Crowd in Parma, Ohio President Barack Obama waves after delivering remarks on the economy at Cuyahoga Community College in Parma, Ohio September 8, 2010. (Official White House Photo by Chuck Kennedy)

02 September 2010

The Cry for Democratic Moral Leadership and Effective Communication 2SEP10 & What Created the Populist Explosion and How Democrats Can Avoid the Shrapnel in November 31AUG10

If you have not read Drew Westen's outstanding piece, "What Created the Populist Explosion and How Democrats Can Avoid the Shrapnel in November" (SEE BELOW), on the Huffington Post, Alternet, and other venues, read it immediately. Westen states as eloquently and forcefully as anyone what he, I, and other progressives have been saying from the beginning of the Obama administration. I agree fully with everything he says. But ...
Westen's piece is incomplete in crucial ways. His piece can be read as saying that this election is about kitchen table economics (right) and only kitchen table economics (wrong).
This election is about more than just jobs, mortgages, and adequate health care. All politics is moral. All political leaders say to do what they propose because it is right. No political leaders say to do what they say because it is wrong. Morality is behind everything in politics -- and progressives and conservatives have different moral systems.
In the conservative moral system, the highest value is preserving and extending the moral system itself. That is why they keep saying no to Obama's proposals, even voting against their own ideas when Obama accepts them. To give Obama any victory at all would be a blow to their moral system. Their moral system requires non-cooperation. That is a major thing the Obama administration has not understood.
The conservatives understand the centrality of morality. They attacked the Obama health care plan as immoral for violating the moral principles of freedom ("government takeover") and reverence for life ("death panels.") The Obama administration made a policy case, not a moral case. The conservatives have characterized the bailouts as thievery and Obama's ties to Wall St. as immoral -- as being in bed with the thieves. The attacks on government are seen as moral attacks, with government seen as taking money out of working people's pockets and giving it to people who don't deserve it. Whether it is the birthers, or the anti-Muslims, or the anti-immigrants, of the pro-lifers, the attack is a moral attack. The Tea Party cry is moral -- for "freedom" (see my book Whose Freedom?), for God, for patriotism. Even jobless benefits are seen as giving money to people who are not working and don't deserve it. Even social security that workers have earned, that are deferred payments for work, are seen as undeserving people "sucking on the tits of the government."
The moral case is not answered just by good policy that will help people who need help -- as Westen proposed. The good policies -- extending unemployment benefits, help to small businesses, help for teachers and firemen, limits on credit card rates, restrictions on rate increases and service reductions by HMO's -- in themselves fit a progressive moral system, but don't in themselves make a case for progressive moral leadership.
Why are so many people about to vote against their interests? The Republicans are not offering kitchen-table benefits. When people are voting against their interests, more interest-based arguments don't help.
Westen's discussion of "the center" and of populism in general, misses what is crucial in this election. There is no one "center." Instead, a considerable number of Americans (perhaps as many as 15 to 20 percent) are conservative in some respects and progressive in other respects. The have both moral systems and apply them to different issues -- in all kinds of ways. You can be conservative on economics and progressive on social issues, or conservative on foreign policy and progressive on domestic issues, and so on -- in all sorts of combinations.
Neuroscience 101, which Westen correctly invokes, tells us that in the brains of such voters, the two incompatible systems inhibit each other, that strengthening one weakens the other, and that the stronger one can have its influence spread to other issues. The "swing voters" are really "swing thinkers." And it is language -- moral language, not policy language, heard over and over -- that strengthens one political moral system over the other and determines how people vote. The Democrats need to reach the swing thinkers -- the people who are moral conservatives on some issues and moral progressives on others -- and strengthen their progressive moral views. The kitchen table arguments must become moral arguments as well -- arguments about freedom, life, fairness, and the most central of American values.
What are those values? They are the values that won the 2008 election for Barack Obama -- and they were not just hope and change. Candidate Obama made the case that American is, and has always been, fundamentally about Americans caring about each other and acting responsibly on that care. Empathy, which he proclaimed over and over was the most important thing his mother taught him, and is the basis of our form of government. Responsibility is both personal and social. "I am my brother's keeper," as he said over and over in the campaign. And thirdly, excellence -- doing everything as well as we can, individually and as a nation. That is why we have life, freedom, fairness, equality -- and quality -- as fundamental values.
We haven't heard that kind of moral leadership since the inauguration. Americans are longing for it. And those moral values really do motivate every kitchen table policy!
It is morality, not just the right policy, that excites voters, that moves them to action -- that creates movements. Legislative action must come from a moral center, with moral language repeated over and over.
What should be avoided, besides policy-wonk and pure-policy discourse? Again, the answer comes from Neuroscience 101. Offense not defense. Argue for your values. Frame all issues in terms of your values. Avoid their language, even in arguing against them. There is a reason that I wrote a book called, Don't Think of an Elephant! Don't list their arguments and argue against them using their language. It just activates their arguments in the brains of listeners.
Don't move to the right in your discourse or action. That will just strengthen the conservative moral system in the brains of swing thinkers. Frame your arguments from your moral position.
In addition, beware of the same pollsters and focus-group-dialers who missed Scott Brown's moral message to the swing-thinkers in Massachusetts and claimed that Martha Coakley would win so handily that she could go on vacation. Just because a message plays well in focus-group-dialing doesn't mean it will win elections.
Finally, Democrats need a truly effective communication system. They need unified, morally-based framing of issues. They need to train spokespeople all over the country in using such framing and avoiding mistakes. They need to organize those spokespeople. And they need to book them, as conservatives do, on radio, TV, in civic and religious groups, in schools and universities. This is doable, but this late, it will take resolve from the top.
Winning this election will require the right policies and actions, but it will also require moral leadership with honest, morally-based messaging and a communications that will not just blog and knock on doors, but will be there in the districts with the crucial swing-thinkers 24/7 day and night.
The Democrats cannot take their base for granted. Only moral leadership backed by actions and communicated effectively can excite the Obama base once more. Without that excitement, the Democrats will lose big.

What Created the Populist Explosion and How Democrats Can Avoid the Shrapnel in November

 http://www.huffingtonpost.com/drew-westen/what-created-the-populist_b_699960.html

To say that the American people are angry is an understatement. The political brain of Americans today reflects a volatile mixture of fear and fury, and when you mix those together, you get an explosion. The only question at this point is how to mitigate the damage when the bomb detonates in November.
The bad news is that it's too late for Democrats to do what would have been both good policy and good politics (and what the House actually did do), namely to pass a major jobs bill when it was clear that the private sector couldn't keep Americans employed. The "Obama Doctrine" should have been that Americans who want to work and have the ability to contribute to our productivity as a nation should have the right to work, and that if the private sector can't meet the demand for jobs, we have plenty of roads and bridges to fix, new energy sources to develop and manufacture, and schools to build and renovate so our kids and workers returning for training can compete in the 21st century global economy. From having spent much of the last four years testing messages on a range of issues, from immigration to taxes and deficits, I can say with some certainty that nothing John Boehner or Eric Cantor could say could come within 30 points of generating the enthusiasm -- particularly among swing voters -- of a message that began, "We don't have a shortage of work ethic in this country, we have a shortage of work." That message resonates across the political spectrum. And it isn't even the strongest message we've tested in the last weeks or months that beats back the toughest deficit-cutting language the other side can muster.
But it's too late for that. The administration opted for an alternative doctrine, which Larry Summers enunciated on This Week several months ago: that unemployment is going to remain high for the foreseeable future and eventually come down -- as if there's nothing we can do about it -- and that they will push here and there for small symbolic measures whose symbolism tends to escape people who are out of work. It's hard to be excited by symbolism when your children are hungry or the bank is repossessing your home -- although you didn't do anything to deserve it -- while the people who did are once again making out like bandits.
Although the situation looks bleak for Democrats in November, it ain't over 'til it's over. Republicans are shooting themselves in the foot all over the country, running Tea Party candidates who are so far to the right you can't see Middle America from their porch. And some endangered Democrats will likely see victory in November from theirs if they understand the public mood and speak to it. 
What is that public mood? It can be characterized by a single phrase -- populist anger -- and it cuts across partisan lines. On the right, it is alloyed with racial anxiety and prejudice. On the left, it is alloyed with tremendous disappointment at what could have been if we had the kind of bold leadership for which times like these cry out. And among people in the vast political center, populist anger is alloyed with anxiety and uncertainty -- about their jobs, their homes, and their children's future.
How to Create a Populist Explosion: A Tragedy in Two Acts
So how did we get here? The story can be told as a tragedy in two acts.
Act I: The GOP Sets the Country on a Course of Economic Destruction and the President Calls for Truth and Reconciliation without the Truth Part
  • A strong economic downturn devolves into a Great Recession, as the stock market crashes and major banks fail. By October 2008, upper middle class moderate Republicans in the suburbs are so frightened by what's happening to their assets that they're willing to give Democrats a chance.
  • A Republican administration that believes in neither government nor regulation creates a 700 billion bank bailout with no accountability. Unlike Republicans, who would say "no" in a situation like this and let a Great Recession turn into a Great Depression, Democrats do the right thing, but they don't make it clear from the start that these are Bush Bailouts and remind Americans, over and over, that the cause of all the bankruptcies is the bankruptcy of Republican ideology.
  • A charismatic young president raises people's hopes and expectations, as he uniquely can. Americans are frightened, but they are willing and waiting to hear an alternative narrative to "government is the problem, not the solution" and a path back to economic recovery and security.
  • The White House refuses to tell the American people three stories they desperately need to hear.
  • The first is why the economy has gone into the ditch, and who did it. The president is steadfast in his position that we should "look forward, not backward," even as the GOP is blocking his every initiative to clean up its mess. As conservative attacks on him and Democrats increase, he refuses to indict the Republicans in Congress or President Bush for having destroyed our economy and putting one in eight Americans out of work and one in five either behind on their mortgage or in the process of having their homes foreclosed by the same bankers who gambled them away. Why did he need to tell the American people who was responsible for their misery -- and to repeat it again and again? Because otherwise, if the worst economic crisis since the Great Depression didn't subside within a year and half, voters would start to associate it with him and his party. This is Neuroscience 101 -- it's how mental associations are formed. But the president never even uttered George W. Bush's name in his first year in office, and the first time he did mention Bush was to appoint him, along with former President Clinton, to co-lead American relief efforts in Haiti. The president doesn't like putting antagonists in any of his stories, but if forced to, he would cite unnamed "naysayers," "Washington politics as usual," or "Congress," which was counterproductive given that Congress was held by his party. The guiding belief at the White House implicit in this messaging strategy was that Americans have a good grasp on economics and good memories.
  • The second story the American people needed to hear from the president was why deficit spending is essential when the economy is spiraling downward. It's not a hard story to tell, even in a sound bite. But one of the best educators to occupy the Oval Office in decades chose not to educate -- he actually did it once, with prodding, but never repeated what was a superb explanation --- nor did he remind voters every time his opponents attacked him for deficit spending that they had left him with a 1.2 trillion dollar deficit on the day he walked into office because of their unpaid-for tax cuts to millionaires and unpaid-for war on Iraq that called on no one to sacrifice except our soldiers and their families (and our kids and grandkids, who will be paying off this war for generations). A year later, with Democrats on the ropes, the president started to tell that story. It was the right move, but appeared defensive because it hadn't been part of his guiding narrative from the start.
  • The third story the president needed to offer was an alternative narrative on government. The president and his party were about to offer effective government as a solution to multiple problems after 30 years of solid branding by conservatives since Ronald Reagan about how government is the problem. But the narrative never came.
  • The White House and Democratic Congress pass what virtually all economists outside the Goldman Sachs-to-Washington pipeline consider a half-stimulus that they predict will likely produce half-results. It fulfilled its promise. But the equally predictable political result was a discrediting of the concept of government intervention to stimulate the economy in the eyes of the public -- enough to scare off Democratic lawmakers from doing what they learned about Keynesian economics in intro economics for the indefinite future. Instead of blasting the Republicans for having hurled the country toward an abyss that would now take drastic measures to avert and warning the American people that this could easily be the first of two or three trillion-dollar packages that might be needed to get Americans back to work and to get the gears of the economy grinding again before we could start returning to the kinds of surpluses Bill Clinton had left the last time a Democrat was in the White House, the president chose to compromise with a party that was so unpopular when he took office that only 20 percent of voters at that point would even admit to a pollster that they considered themselves Republicans -- the lowest point for the GOP since the rise of public opinion polling 50 years earlier.
  • The economy continues its free-fall, shedding 700,000 jobs a month. Meanwhile, Democrats don't take the kind of dramatic steps necessary to stop the bleeding. Americans are becoming desperate, but they remain hopeful that this new president will turn things around, and that perhaps the jobs provisions of the new "stimulus" act will do cauterize the wound. Meanwhile, the stimulus is being portrayed by Republicans as a mixture of pork and fat, and no one is effectively answering the charges, creating increasingly negative associations to an act that was never adequately crafted or sold.
  • The logical follow-up to a bill designed to pull the economy out of a ditch is to make such a bill unnecessary in the future, by attacking Wall Street for having thrown us into crisis and passing strong legislation to rein in the excesses that created the economic meltdown. This would have sealed the American people's loyalty to the new president and Congress. (Heading into November, this is, in fact, the most popular piece of legislation the Democrats have passed, but it took them nearly a year and a half to get there, and by then, neither the president nor the Democratic Congress enjoyed the good will of the average American.) Instead, the same banks that received bailouts are foreclosing in record rates on the homeowners whose payroll taxes funded the bailouts but don't seem to get the same kind of attention to their needs from the federal government. Adding insult to injury, the banks double and triple credit card interest rates to as high as 30 percent, including on people's existing credit card debt -- while continuing to receive no-interest loans from the federal government.
  • Despite talk of accountability, no one is fired (except one auto executive), virtually no one is prosecuted or even investigated as far as anyone knows, and banks that received bailouts flaunt record bonuses.
Act II: An Anemic Economy Meets an Anemic Health Care Plan
  • The public has been clamoring for health care reform. Over 40 million people don't have health insurance at all, and the 85 percent of voters who do have health care have seen their costs double during the Bush years at the same time as real income has declined. Effective narratives on health care are widely available that win by a 2:1 margin against the toughest Harry-and-Louise anti-reform language from the other side. The opposition knows it, as evident in a leaked memo by Republican wordsmith Frank Luntz, who warns that this will be an uphill climb for opponents of reform, who would do well to accept some major elements of it.
  • But instead of using any of the well-tested narratives that were highly effective during the campaign or devising any new ones of its own, the administration decides to try to "sell" health care without a narrative. (I wrote about this in detail a year ago and will not repeat that history here, except in telegraphic form.) The president refuses to state where he stands on any of the substantive debates about health reform for a year, such as whether we should have a "public option" (a term so ill-conceived it's hard to believe the public supported it anyway; imagine the support it might have received if it had been called instead "the one health care plan the health insurance companies don't get to control"). Instead, the White House uses phrases such as "bending the cost curve" while conservatives flood the airwaves with evocative phrases such as "government takeover," "a bureaucrat between you and your doctor," and "death panels."
  • Instead of using Big Pharma and the health insurance industry as the villains of the health care story, which would explain why we need an overhaul rather than a Band-Aid, the White House once again offers a story without protagonists or antagonists, and cuts secret deals with both industries that become public.
  • Over interminable months of trying to get the votes of the same Republicans who fought against Medicare for seniors for 30 years until the program was just too popular to keep attacking it and who are still trying to gut Social Security despite its popularity, the public then watches what George Will describes as the "serial bribery" of Republican and Democratic Senators alike, as each gets to take his or her turn as the 60th vote.
  • At the 11th hour, as a compromise plan is finally going to pass, the president nixes the idea of a Medicare-like alternative Americans can choose over a health-insurance industry plan if they so desire, despite 60 percent of even swing voters wanting it included in the bill.
  • Instead of being the signature bill that demonstrates both that Democrats can govern effectively and that government can be a force for good for working and middle class Americans (who have just been told that the better plans they've negotiated or been offered for years by their employers are "Cadillacs" that are going to be taxed out of existence), the entire process proves to the average American that government can't do anything right and scares moderate Democrats away from voting for any other bill that would ever put them on the record supporting government or spending.
  • "Government" hits an all-time low in the polls, matching the popularity of big corporations, CEOs, and bailouts.
  • Populist anger emerges as the primary emotion across the political spectrum, and the president's job approval with swing voters drops into the high thirties.
  • Following the conventional wisdom, Democrats return to their all-too-familiar defensive crouch, and conclude that when in trouble, tack right. On health care, the president and his Cabinet fan out all over television to "reassure" the public on health care that abortion won't be covered (thanks for the reassurance, but most of us didn't find that reassuring), that domestic partners won't be covered, and that immigrants won't be covered. None of these issues needed to be conceded. (I know this because I tested messages on them, and well- messaged progressive positions on them would have boosted the popularity of the bill with swing voters.)
  • The White House starts adopting failed conservative policies and talking points that leave the public utterly confused about where the president, and by extension, his party, stands on the central issues of the day. The president talks about cutting deficits and increasing spending in the same breath, using the metaphor of families tightening their belt in tough times, which only strengthens resolve against stimulating a faltering economy; pledges support for massively expanding offshore drilling and "clean coal" (which doesn't exist, by the way) in a speech on climate change; and sends in 1200 additional National Guards to Arizona as an apparent reward for passing "No Latino Left Behind," while publicly objecting to the legislation.
  • The underlying psychological assumption of these moves is that if you mix policies from the right and left in equal parts, you win the center. In fact, no one has ever won the center that way. It appears weak, opportunistic, and incoherent to the average swing voter, which is particularly problematic at a time when people in the center desperately want to know that their leaders have a vision and a coherent plan for what to do (which is why both FDR and Ronald Reagan were so effective in moving voters in the center). It doesn't win any votes on the right. But it does have one predictable effect: It sucks the motivation out of your base, who feel demoralized and betrayed (if they're part of the "professional left") or less likely to vote (if they're average voters who don't follow politics carefully but just don't feel very enthusiastic anymore, even if they don't really know why).
  • Capping it all off, the BP disaster occurs two weeks after the president has adopted the "drill here, drill now," "all of the above" position of the Republican Party and the oil companies. This could have been the perfect opportunity to go on the offensive, contrast what Democrats stand for (common sense, protection of our safety, the land we leave our children, and key American industries and jobs, and sticking up for ordinary Americans against big businesses and their lobbyists) with what Republicans stand for; and connect the dots between what happened on Wall Street (with regulators owned and operated by the companies they were supposed to regulate) and what happened in the Gulf (where precisely the same thing happened). Instead, the administration finds itself on the defensive, increasingly sounding like a subsidiary of BP, allowing BP to call the shots and control information for weeks, defending increasingly hard-to-believe statistics, and issuing press releases that appear indistinguishable from those issued by BP but are inconsistent with assessments of independent scientists.
Where Do We Go from Here? So that is where we find ourselves today: a Democratic Party and Democratic base that is demoralized and unlikely to vote in high numbers in November; a Republican Party that is selling replanted Bushes with tremendous enthusiasm; and a vast political center filled with voters who are utterly confused and unsure who to turn to but certain that things aren't going well.
In January 2009 no one could have predicted that Democrats would be in this predicament today. Perhaps Democrats might lose a few seats lost in an off-year election, but certainly no more than that. We had just seen -- and the American public knew we had just seen -- the most disastrous performance by a president and party in living history, and the American people had elected a tremendously charismatic young president with enormous Democratic majorities in both houses of Congress. They had given the president and Congress a strong mandate for whatever kind of change was necessary to get us out of economic free-fall and to put Americans back to work.
But there were red flags already by the end of Obama's first week in office that led me to offer the following advice to the new administration: Tell the story of how we got in this mess or you'll own it. Tell a coherent story about deficit spending. Re-brand government because there's only one story out there now (Reagan's), and it's not one that supports a progressive agenda. Never let attacks go unanswered, because doing so only emboldens your opposition and leads the public to believe that you have no answers to them. And if you throw a bipartisan party and no one comes, don't throw another one. All of what followed has been as predictable as it has been unfortunate. A year and a half later, the White House hasn't consistently done any of these things, although the President is now intermittently doing some of them, and when he does, he does them well.
The question today is whether Democrats can channel the populist anger we are seeing around the country this late in the game. The answer is that we'd better try. Having recently tested messages on economics and jobs, including how to talk about deficits and taxes -- widely assumed to be Democrats' Achilles Heel, particularly now -- there is little question that if Democrats and progressives from center to left simply say what they believe in ways that are evocative, values-driven, and speak to people's worries and anger, many stand a good chance of surviving November, particularly when their opponents have nothing to say other than warmed-over rhetoric about cutting taxes to millionaires and multinationals and fiscal restraint except where it cuts into profits of their campaign contributors. Even the most evocative boilerplate conservative messages fall flat against honest messages that speak to the need to get Americans working again. And on issue after issue, no message is more resonant right now than one that sides with working and middle class Americans and small business owners against special interests, big business, and their lobbyists.
But actions speak louder than words, and Americans want to see action. It may be too late for the kind of jobs bill we should have seen a year and a half ago, but it isn't too late for Democrats to go on the offensive against the Republicans -- virtually all of them -- who opposed extending unemployment insurance to millions of Americans who were thrown out of work by the Republicans' corporate sponsors. It isn't too late for Democrats to contrast their support for the highly popular aid to state and local governments that just saved the jobs of hundreds of thousands of teachers, firefighters, and police all over the country with Republicans' desire to throw them out onto the street. It isn't too late to make a voting issue out of the bill the Republicans are stalling that would give small businesses a fighting chance in an economy stacked against them, and to make clear that one party stands for small businesses, which create 75 percent of the new jobs in this country, and the other party stands for big businesses that outsource American jobs and offshore their profits to avoid paying their fair share of American taxes. It's not too late to pass a bill that would limit credit card interest rates to a reasonable percent above the rate at which credit is made available to credit card companies. It's not too late to pass the first badly need "fix" to the health care reform act to demonstrate to Americans that Democrats mean it when they say this was just the first step, namely a law that stops insurance companies from increasing their premiums by 40 percent while cutting the size of their networks by 50-75 percent, which violates the principles of affordability and choice that were so essential to efforts to sell health care reform to the public. It's not too late to vow to change the rules of the Senate to prevent the use of the filibuster to give every special interest veto power over every important piece of legislation. It's not too late to introduce legislation that's been on hold in both the House and Senate to guarantee fair elections, so that the voice of everyday Americans is heard over the voice of the special interests that finance political campaigns.
On every one of these issues, a strong populist message trounces anything the other side can say. But Democrats need to play offense. They need to take up-or-down votes on bill after bill, including those they expect the other side to block, knowing that every one of those votes has the leverage of a campaign ad behind it. They need to change the narrative from what sounds to the average American like a whiny and impotent one -- "the Republicans won't let us do it" -- to a narrative of strength in numbers shared with their constituents. And they need to make every election a choice between two well-articulated approaches to governance -- and to offer their articulation of both sides' positions and values.
That leads to a final point. What Democrats have needed to offer the American people is a clear narrative about what and who led our country to the mess in which we find ourselves today and a clear vision of what and who will lead us out. That narrative would have laid a roadmap for our elected officials and voters alike, rather than making each legislative issue a seemingly discrete turn onto a dirt road. That narrative might have included -- and should include today -- some key elements: that if the economy is tumbling, it's the role of leadership and government to stop the free-fall; that if Wall Street is gambling with our financial security, our homes, and our jobs, true leaders do not sit back helplessly and wax eloquent about the free market, they take away the dice; that if the private sector can't create jobs for people who want to work, then we'll put Americans back to work rebuilding our roads, bridges, and schools; that if Big Oil is preventing us from competing with China's wind and solar energy programs, then we'll eliminate the tax breaks that lead to dysfunctional investments in 19th century fuels and have a public-private partnership with companies that will create the clean, safe fuels of the 21st century and the millions of good American jobs that will follow.
That's what Democrats stand for. It's time they said it.

20 August 2010

After MoJo Story, Soldier Gets Home Back 19AUG10

BACK on 6 MAY 10 I posted a story first covered by Mother Jones, 'Soldier in Iraq Looses Home Over $800 Debt', the home was foreclosed on for an $800 HOA debt! Well, here is an update, and this soldier and his family are getting their home back. Check this out from Mother Jones, click the link to read the original story.

| Thu Aug. 19, 2010 11:42 AM PDT
A few folks have been asking me on Twitter, so I figured MoJo readers were owed an update on Michael Clauer, the Texas soldier who lost his $300,000 home over an $800 debt while he was serving in Iraq.
When I wrote about the Clauers' plight in May, it hadn't yet received any national attention. But reader response was swift. The article garnered over 650 comments on MotherJones.com, plus thousands more on Huffington Post and other sites that linked to our investigation. Fortunately, this story has a happy ending. [Read the original story here.]
I exchanged emails with the Clauers' lawyer, Barbara Hale, earlier this month, and she told me the case has been resolved. As of now, it looks like Michael, his wife May, and their two children will get their home back. The financial terms of the settlement are confidential.
The Clauers were saved by a law called the Servicemembers Civil Relief Act, which essentially forbids foreclosing on active-duty troops. If Michael hadn't been on active duty, the Clauers might not have had any legal recourse. Of course, they really shouldn't have had to deal with lawyers in the first place. Whatever happened to being neighborly? Here's an excerpt from the original story:
Michael went on active duty in February 2008 and was sent to Iraq. After he shipped out, his wife May slipped into a deep depression, according to court documents. "A lot of people say that the deployment is more stressful on the spouse than the actual person who's being deployed," Michael, 37, says in an interview with Mother Jones. May Clauer had two kids to take care of—a ten-year-old and a one-year-old with a serious seizure-related disorder. In addition, she was worried sick about her husband. Michael's company was doing convoy security in Iraq—an extremely dangerous job. "It was a pretty tough year for the whole company," he says. "We had IEDs, rocket attacks and mortar attacks, and a few soldiers that were hurt pretty bad and had to be airlifted back to the States."
Seeking to avoid hearing about the situation in Iraq, May stopped watching the news. She rarely answered the door, and Michael says he couldn't tell her when he went "outside the wire"—off-base. May also stopped opening the mail. "I guess she was scared that she would hear bad news," says Michael. That was why she missed multiple notices from the Heritage Lakes Homeowners Association informing her that the family owed $800 in dues—and then subsequent notices stating that the HOA was preparing to foreclose on the debt and seize the home.... In May 2008, the HOA sold the Clauers' home for a pittance—$3,500—although its appraisal value was $300,000, according to court documents. The buyer then resold the house to a third person. (Select Management Co., the company that manages Heritage Lakes, declined to comment for this story.)
...At no point did anyone from the HOA—which is, after all, composed of the Clauers' neighbors—appear to have tried to visit May Clauer's house to talk to her about the problem. "The HOA board members...don't live very far from me at all," Michael Clauer says. There were "neighbors owing much more than us [who] were notified in person of pending foreclosures, but my wife only received a few letters." David Schechter of the Dallas/Fort Worth television station WFAA, which first reported this story, notes that the "Clauers' HOA says homeowners are free to call them, but they do not call or visit homeowners when there's a problem. They're only required to send a certified letter."
If folks from the homeowners association had bothered to knock on May Clauer's door, they might have avoided all this—the legal fees, the negative press attention, and the (surely large) settlement costs. But they didn't, and they paid the price. Fred Rogers would be ashamed.
Here's an interesting postscript: When I asked whether the homeowners association that foreclosed on Clauer admitted wrongdoing, Hale emailed back "Heck No!" Homeowners associations have enormous power. In 33 states, they can foreclose without a court order over a few hundred dollars in unpaid dues. The process in Texas is especially quick—just 27 days. Texas HOAs have been bedeviled by allegations that they are taking advantage of the law. Some have even been accused of specifically targeting people who own their homes free and clear—like the Clauers did—so that they can flip the house and make a profit. Until the laws are reformed so that it's harder to take people's homes over a few hundred bucks, you're going to keep seeing these sorts of stories. At least this one had a happy ending.
This post has been extended since it was first published.

07 August 2010

Alan Greenspan: Extending Bush Tax Cuts Without Paying For Them Could Be 'Disastrous'

Former Fed Chairman Alan Greenspan said that the push by congressional Republicans to extend the Bush tax cuts without offsetting the costs elsewhere could end up being "disastrous" for the economy.
In an interview on NBC's "Meet the Press," Greenspan expressed his disagreement with the conservative argument that tax cuts essentially pay for themselves by generating revenue and productivity among recipients.
"They do not," said Greenspan.
"I'm very much in favor of tax cuts but not with borrowed money and the problem that we have gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money," he said. "And at the end of the day that proves disastrous. My view is I don't think we can play subtle policy here."
The comments from the former Fed chief were an elaboration of a position he outlined in an interview earlier in the week. Speaking with PBS' Judy Woodruff, Greenspan expressed his opposition to passing legislation that would hold tax rates steady (under law the tax cuts Bush passed ten years ago are going to expire, thereby bringing rates back to Clinton-era levels). President Obama has pledged to continue the tax breaks for those individuals making under $200,000 and those families earning less than $250,000.
But Republicans want the entire package kept in place. Even so, they have declined to say how they would pay for it, saying, in part, that keeping the Bush tax cuts in place will pay for itself.
In addition to throwing cold water on that theory, Greenspan also weighed in on broader economic issues and trends. The former Fed Chairman relayed some sobering economic predictions, saying he expected the nation's unemployment rate to remain at its current level, mainly because there were few tools left to change it.
Story continues below
"I see it [as] we just stay where we are," he said. "There is a gradual increase in employment but not enough to reduce the level of unemployment ...There is nothing out there that I can see which will alter the trend or the level of unemployment in this country.

06 August 2010

POLITICIANS WANTING TO CUT THE GOVERNMENT WORKFORCE SHOULD START WITH THEIR STAFFS 6AUG10

First Punish The Unemployed, Then Declare War On The Employed


Over the past few months, Congressional Republicans and skittish Democrats who've lingered too long at the Deficit Panic Kool-Aid Stand have made life extraordinarily difficult for the most vulnerable members of society -- the nation's unemployed.
Rather than extend unemployment benefits so that the millions of Americans who are out there busting their humps to find the needle-in-a-haystack that is a job of any kind, they've demanded that those benefits be offset, essentially punishing the unemployed for the deficits they giddily ran up for years.
It's been pretty embarrassing to watch, frankly. But at least no one's out there running on an actual platform of kicking those who have managed to secure employment out of work, right?
Republican gubernatorial candidate Dan Maes said Thursday he would lay off as many as 4,000 state employees if elected and force a showdown with the federal government over drilling for gas and oil.
Dan Maes told the Denver Petroleum Club he would cut at least 2,000 workers "just like that" from the state budget, with projected savings of $200 million.
Oh, hey, I stand corrected. Colorado gubernatorial candidate Dan Maes, not satisfied with eliminating the scourge of internationalist bicycle enthusiasts, has made "I will kick you or someone you love out of their job during this massive unemployment crisis" a campaign promise.
You wouldn't think that this would be a successful campaign strategy in 2010. But Maes simply represents the extreme edge of a new vanguard in GOP electioneering -- declaring war on the employed.
Take Representative Michele Bachmann (R-Minn.), for example. This week, when House Speaker Nancy Pelosi (D-Calif.) announced that the "House will reconvene next week to vote on a state aid package designed to, among other things, save up to 140,000 teachers' jobs". Bachmann decried the move, calling it a "bailout," and vowed to "call 1,000,000 households" to complain about this -- a promise that I don't think she'll keep, seeing how she'll likely end up talking to thousands of people who won't respond well to the idea that they need to lose their livelihoods to cover the asses of their public servants.
Of course, Bachmann is still out there in the wilds of political Narnia. How does a similar stance from House Minority Leader John Boehner (R-Ohio) grab you?
The American people don't want more Washington 'stimulus' spending - especially in the form of a pay-off to union bosses and liberal special interests. This stunning display of tone-deafness comes at the expense of American workers, who will be hit by another job-killing tax hike because Washington Democrats can't kick their addiction to more government 'stimulus' spending. Democrats should be listening to their constituents - who are asking 'where are the jobs?' - instead of scampering back to Washington to push through more special interest bailouts and job-killing tax hikes.
As Pat Garofalo points out, Boehner is bizarrely referring to "teachers, firefighters, and police officers" as "special interests." Mainly, those folks are "specially interested" in helping people's kids get an education and marketable skills, keeping their fellow citizens free from harm, and preventing houses and businesses from burning to the ground.
Both Boehner and Bachmann believe that this aid package would cost taxpayers "$26 billion we don't have," but did anyone tell them that the bill "actually reduces the deficit by $1.3 billion dollars", or are they just lying to people?
Still, when it comes to exacerbating the unemployment crisis, Senator Orrin Hatch (R-Utah) leads the field. He's picked this moment to call for massive cuts to the federal workforce:
Sen. Orrin Hatch (R-Utah) introduced legislation today aimed at cutting the bloated federal government down to size. The Reduce and Cap the Federal Workforce Act would reduce and limit the number of civilian federal workers to February 2009 levels.
"If we are to get our deficit under control, we need to rein in the runaway growth of our federal government," Hatch said. "Simply put, the federal government is growing at breakneck speed and it is time to apply the brakes before it bankrupts the nation and the taxpayers. My bill is a commonsense approach to putting a halt to big government."
Hatch said the numbers show why his legislation is needed. From 1981 through 2008, the senator noted, civilian workers numbered between 1.1 million and 1.2 million. The Obama administration is forecasting the government's workforce this year will reach 2.15 million and serve 310 million Americans.
How idiotic is the timing here? Well, let's look at today's job numbers:
Private employers added just 1,420 jobs per state in July -- not nearly enough to make up for job losses in the government, 50,000 of which were local-government layoffs. Unemployment remains high, at 9.5 percent, and many economists expect it to track higher in the fall.
Where are the people who would lose their jobs to go, exactly, other than off into the woods to die?
Obviously, there's nothing intrinsically wrong with reducing a bloated government workforce, but to call for a scythe to be indiscriminately swung in the direction of people who are fortunate enough to have work at a time when there are already five job seekers for every single job opening is just breathlessly inane.
But here's an idea: why don't we start the culling by eliminating every single staff position serving the United States Senate? It can't possibly require that many people to be so useless.

23 July 2010

Forecast: Federal budget deficit will exceed $1.4T in 2010, 2011 23JUL10

Rep Mike Pence and his hypocritical colleagues in the Republican party will howl in dismay over these new projections and will stand in the way of deficit reduction through ending the Bush era tax cuts for the wealthiest Americans. A question for all those Republicans who claim these tax cuts for the wealthy create jobs.....WHERE ARE THOSE JOBS? These tax cuts and the cost of Bush's illegal and immoral war in Iraq are adding more to the deficit than the extension of unemployment benefits and the stimulus package, and economist across the political spectrum admit the stimulus is creating jobs....SO WHERE ARE ALL THE JOBS FROM THE BUSH TAX CUTS FOR THE WEALTHY? This is from the Washington Post


The federal budget deficit, which hit a record $1.4 trillion last year, will exceed that figure this year and again in 2011, according to a White House forecast released Friday.
The $1.47 trillion budget gap predicted for 2010 represents a slight improvement over the administration's February forecast. But the outlook for 2011 has darkened considerably, primarily due to a drop in expected tax receipts from capital gains.
White House budget director Peter Orszag noted in a conference call with reporters that the president's budget is still on track to cut the deficit in half, as a percent of annual economic output, by the end of his first term. As the economy improves, the White House forecasts that the deficit will be just over $700 billion in 2013.
But at a time of heightened public anxiety about government borrowing, the forecast of three consecutive years awash in such high levels of red ink is certain to provide fresh ammunition to Republicans campaigning to regain control of Congress in the fall midterm elections.
Democrats quickly sought to remind voters that the budget gap is due primarily to the effects of the recession, which depressed tax revenues and forced policymakers to throw hundreds of billions of dollars into economic rescue programs.
"That federal response, including actions by the Federal Reserve, efforts to stabilize the financial sector started by the Bush Administration, and last year's economic recovery package, has successfully pulled the economy back from the brink," Senate Budget Committee Chairman Kent Conrad (D-N.D.) said in a statement. "Although the economy remains fragile and the unemployment rate is still far too high, economic and job growth have begun to return."
Conrad and others noted that the president has created a bipartisan commission to develop a plan to reduce long-term deficits, which, if unchecked, threaten to drive the national debt to more than 77 percent of annual economic output by 2020.
But for the commission's efforts to succeed, independent budget analysts said President Obama should begin talking to voters now about the painful decisions ahead, including cuts to Social Security benefits and higher taxes.
"The White House has to use the bully pulpit to spotlight the nation's fiscal challenges," said Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget. "The President cannot afford to sweep this type of fiscal warning under the carpet or we risk that policymakers will go along their merry way, as they have in past years, ignoring the warnings and marching towards some type of fiscal calamity."

Leader of the Not-Democrats Party (THE STUPIDITY OF john boehner) 23JUL10

HE may be the most tanned man in Congress but he offers nothing for building up, restoring, revitalizing, or guiding the nation if the gop wins in November. He has a very big mouth but nothing else going for him, and nothing for the American people. From the Washington Post.....

I was at a luncheon today with House Minority Leader John Boehner at which just about every question for the Ohio Republican started the same telling way: If you become speaker....

The striking thing about Boehner’s answers at the lunch, sponsored by The Christian Science Monitor, was how little of a positive program he presented. The Republican agenda as sketched out by Boehner was more of an absence of Democratic policies than the implementation of Republican ones.

He did say that Republicans would have more to say in September, after spending next month checking in with voters. “You have to listen before you outline an agenda, and we’re listening,” he said. For the country’s sake, I sure hope they hear something worthwhile. Because what Boehner offered up was pretty unconvincing.

Asked the first three things he would do as speaker, Boehner rattled off a list that added up to Not Being Democrats.

The first: “repeal Obamacare,” which Boehner described as a “giant impediment” standing in the way of job growth. Except... President Obama won’t be signing that repeal even if it were to pass the House and Senate.

Second, “no cap-and-trade.... You raise the cost of energy, you raise the cost of doing business.” Except... no cap-and-trade legislation appears to be on its way, Republican House majority or not.

Third, ”not raise people’s taxes,” because “you cannot get the economy going again” without “giving people some certainty about what their taxes are going to be.” Except... much as Boehner & Co. would like voters to think otherwise, the only question is whether the Bush tax cuts will be extended for everyone, or for almost everyone (other than those making more than $250,000 a year.)

“On Election Day, if we win the majority a lot of the uncertainty is going to go away,” Boehner said. That, he said, “will do more to help American employers than anything we can do.”

Except... what uncertainty? Boehner mentioned another going-nowhere-fast proposal, “card check,” the labor-backed measure to make it easier for unions to organize, and another not-disappearing-anytime-soon measure, the just-signed financial services reform bill. Hard to see how having a Republican House -- or even a Republican House and Senate -- would change either of those situations.

As to getting the deficit under control, Boehner specified two items -- cancelling unused TARP funds, which would bring in $16 billion, and cancelling unspent stimulus funds, another $50 billion or so -- and then pointed to $1.3 trillion in potential cuts outlined by Rep. Paul Ryan (R-Wis.) as “a pretty good list of options.” (The Ryan cuts, by the way, already include the TARP and stimulus funds.)

But Boehner didn’t specify what Ryan cuts he liked or didn’t like, and he pointedly refused to say whether or not he bought into Ryan’s broader, and rather audacious, plan to balance the budget. “Parts of it I like, parts of it I have my doubts about,” he said. Not exactly enlightening.

It’s better, no doubt, for Boehner and his party if the election is, as he put it, “a referendum on the job-killing policies that are coming out of this administration and my colleagues across the aisle." But voters are entitled to hear more from the man who would be speaker -- and to hear it before Election Day.

A CALL TO ACTION...WE CAN'T MISS THIS OPPORTUNITY FOR PEACE! from CODE PINK

I am proud to say I participated in several demonstrations, large and small, against the Iraq war, before and after it started. Hundreds of thousands of us were not deceived by the war pigs of the bush administration and struggled on the streets and with Congress and the media to prevent this illegal and immoral war. It is time for another sustained struggle on the streets  and with Congress and the Obama administration. The waste of lives and resources has to end NOW! I have signed up to participate, hope you will too. 
Share your voice during the week of August 25 to 31 -- the week that most of the US troops will return from Iraq.
Almost eight years ago, I made my way to DC to meet up with Medea Benjamin and a few other friends to talk about what we could do to stop the Bush administration's insane push toward invading an innocent country: Iraq. The next morning, eight of us were in front of the White House, on the steps of Congress and in the hearing for the resolution on Iraq; the day ended with two of us in jail. Our message was US Inspectors, Not US War. We had read articles about how the White House had been dreaming the invasion up over the summer and was waiting until September to push it because "you don't launch a new product in August." People's lives were at stake, and they were treating war like the release of a new sports car.
We started CODEPINK in a desperate attempt to try to stop the war in Iraq. We vigiled outside the White House for five months, taking our message and outrage to the halls of Congress, press conferences and every invasion sales pitch we could gain entry to. We met with Nancy Pelosi, who told us she had a briefing with a Florida Senator that convinced her that there were no weapons of mass destruction.  As the Democratic Whip she boldly broke with leadership to oppose the war. Sadly, her words were without action.  The resolution swept through the committee hearing; we sat and listened with horror to Democrats arguing for the war, their arguments terrifyingly ungrounded in any real facts.  Bush wanted to release his shiny new sports car and no one in Congress had the guts to say “This car is dangerous, it’s way too expensive, it doesn’t have any brakes, and it can only end in tragedy.” Congress just sat back and let him have his deadly toy, while we did whatever could to try to keep it off the road.
While we did not succeed in stopping the invasion, we did spend the past eight years organizing, mobilizing, expressing our outrage and exposing the futility, stupidity and enormous cost of this debacle for both Iraqis and Americans. We have countered the constant lies spewing out of the Oval Office, the "think tanks" and the media. We have worked tirelessly to try to bring our resources back home where they're most needed--particularly as millions of Americans are turned out of their homes, people are desperate for jobs, and we need to reconfigure our entire energy system.
By August 31, U.S. troops in Iraq are scheduled to be reduced to 50,000--marking what we hope will be the beginning of the end of this catastrophe. The Pentagon and the war supporters will undoubtedly spin this catastrophic intervention as a success--while Iraq lies in ruins and thousands of our soldiers have died in vain. Worse yet, it seems they have learned nothing from the disaster, as we are repeating it again in Afghanistan. Congress is voting for another $33 billion for the Afghanistan war while our states and cities go bankrupt and EVERYONE knows there is no military solution.
This insanity will have no end--unless we end it. This faulty “product” needs to be recalled.
Will you join with CODEPINK and other peace and justice organizations in sharing your voice during the week of August 25 to 31--the week that most of the US troops will return from Iraq? We need your help getting out the truth that the Iraq war was based on lies, has left Iraq in tatters, has drained our resources and MUST NOT be repeated for years to come in Afghanistan. There are so many who have paid the price of this crime....so many except those who are responsible. Sign up to join our action team for the last week of August; we will help you with tools and inspiration to write letters to the editor and op-eds, to call in to radio shows, to educate your colleagues.  We need thousands of voices—yours counts.

16 July 2010

The Financial Regulation Vote Shows that While Americans Should Be Angry, the GOP Is not the Solution

DEMOCRACY IS NOT A SPECTATOR SPORT! 
"But the main point of anger is the economy. The official unemployment rate is hovering around 10 percent (with millions more not counted because they've given up on looking for a job). People are concerned about their ability to pay their bills and see an unfair system that rewards Wall Street's reckless risks while punishing middle class workers.
But if Americans want to assess blame for these woes, and if they want to choose who should help get us out of these messes, they have an obligation in a democracy to make an effort to really look at the issues before making a decision. And the media, likewise, has an obligation to sort through these complicated issues more carefully."

As the partisan cable networks breathlessly discuss what will happen in the midterm elections in November, there is much talk about how Americans are angry and, as a result, the Republicans are set for major gains in Congress. But the connection between these two assertions -- Americans' dissatisfaction and GOP success -- strikes me as incredibly lazy, both by the media and the voters.
Nowhere is this disconnect more clear than in the financial regulation battle, which finally concluded with a bill passing the Senate yesterday.
Americans have every right to be angry. Oil has been spewing into the Gulf of Mexico for nearly three months (hopefully, it's finally been contained). Islamic extremists seek to kill Americans. We have such a muddy immigration situation, that, no matter which side of the ideological fence you sit on (pun intended), you can't be happy with the way things currently operate.
But the main point of anger is the economy. The official unemployment rate is hovering around 10 percent (with millions more not counted because they've given up on looking for a job). People are concerned about their ability to pay their bills and see an unfair system that rewards Wall Street's reckless risks while punishing middle class workers.
But if Americans want to assess blame for these woes, and if they want to choose who should help get us out of these messes, they have an obligation in a democracy to make an effort to really look at the issues before making a decision. And the media, likewise, has an obligation to sort through these complicated issues more carefully.
If the Republican campaign message for 2010 was something like, "Yes, we know that we caused all these problems in the Bush years, but we've learned our lesson, and now we are offering these new ideas to fix things in the future," I would understand (if not agree with) the equating of the problems with Republican gains. But that's not what the Republicans are offering. Rather, the GOP campaign message for 2010 is essentially the same message as the Bush years, only more militant (and more wacky, thanks to the Angle-Paul tea party influence). Their pitch is built around deregulation, lower taxes for the rich, and less government, the very things that got us into this mess in the first place.
The Republican congressional record for the Obama years consists of opposing any initiative the president offered (in an effort to make him look ineffectual), even if he proposed something the GOP itself had supported earlier, and to offer as solutions the same tired policies from the Bush years (tax cuts, even if they add to the deficit, as Sen. Jon Kyl suggested). That shouldn't be a winning election argument. But with incendiary rhetoric and right-wing-propaganda-machine-fueled lies taking center stage, the focus for the midterms hasn't been on the facts (how we got here and what the two parties have offered since).
In fact, the Republicans have been at the heart of the causes of these problems, and they have offered little other than the same policies as solutions.
Which brings us back to financial regulation, an issue directly tied to the current economic problems. We did not magically morph from prosperity to recession. Rather, the current recession and massive job loss began with the near collapse of the financial system in 2008. Wall Street played a win-lose game (they won no matter what, but we all lost) with risky financial instruments. The housing market collapsed under the weight of subprime mortgages. So the deregulation trumpeted by Republicans caused this mess, and yet the party still touts deregulation.
Certainly, Americans should be angry. And it would seem obvious that action was needed. Nevertheless, all but three Republicans in the Senate didn't think so. Given a choice of standing with the banks or the American people, the Republicans announced their allegiance loud and clear: It is the party of the financial institutions.
So what is the Republican solution to our economic woes? Based on the actions of their leaders, it seems to be to blame the victims, cut taxes and protect the banks. Not only have Republicans opposed extending unemployment benefits, they have tried to blame the unemployed for their plight, particularly cruel since it was their policies that put them out of work in the first place. Arthur Delaney pointed out two examples in HuffPost last week: Sen. John Kyl said unemployment benefits provide a disincentive for the unemployed to seek work, and Sen. Judd Gregg claimed that unemployment insurance encourages the unemployed to stay out of work. (Again, Kyl won't support adding to the deficit for unemployment insurance, but he is fine with doing so for tax cuts for the wealthy.)
Republicans have used increasing government debt as a pro-GOP argument. Generally, it is, of course, better for the government not to run large deficits. But the Republican argument ignores history and is overly simplistic. After all, Bill Clinton handed a surplus to George W. Bush, who proceeded to leave Obama with a gaping deficit. Republicans were happy to run up debt in the 2000s on tax cuts for the rich and the wars in Iraq and Afghanistan, none of which were paid for. But now that the tens of millions of Americans face unemployment, these same GOP leaders complain about the deficit and say we can't afford any programs to help. How is it that we could afford to spend when it was for tax cuts (and still can, according to Kyl), but not to help those hurt by the Republican-policy-induced recession?
Two polls released on Tuesday showed that Americans care more about unemployment than the deficit. Which party is more concerned with each of those issues? So why should the anger translate to GOP votes? It shouldn't.
In general, Republican policies precipitated the recession, and the party's solutions are to offer more of the same. And when it came to deciding who to stand up for, the Republicans attacked the unemployed and stood with the banks. Americans' anger is legitimate, but directing that anger by giving power back to the GOP is misplaced. The connection makes no sense.
(You could run the same arguments for the oil disaster, immigration and terrorism, showing the Republican culpability and the lack of new solutions offered by the GOP to address the problems.)
I harbor no illusions that Obama and the Democratic Congress are above critique. But I'm saddened that there seems to be no recognition that most of the messes we find ourselves in were created, by and large, by the policies instituted by Bush and his Republican allies in Congress, and that the Republicans are offering those very same policies as the solution in the current campaign. It seems to me handing the reins back to the people who created the problems in the first place (and, more importantly, are only offering more of the same) is a horrible way to respond to the challenges. I'm further saddened that GOP strategy of obstructing and lying, putting rhetoric in front of facts, seems to be working.
You would think that with an oil disaster ravaging his state's already hurting economy, Sen. David Vitter would have better things to do than vote against financial reform and endorse bogus "birther" lawsuits against the president. But this is the essence of the Republican party in 2010.
 

Alan Greenspan: Let Bush Tax Cuts Die 16JUL10

I don't agree that the middle and lower income tax cuts should be eliminated, but do agree the bush tax cuts for the wealthy should expire. At least Alan Greenspan has the courage to admit he made a mistake supporting the bush tax cuts.
Alan Greenspan
J. Scott Applewhite/AP Former Federal Reserve Chairman Alan Greenspan on Capitol Hill in  April 2010.
Former Federal Reserve Chair Alan Greenspan may no longer be the Maestro making all the economy's instruments play in harmony, if he ever could. But he still knows how to make a little news.
Greenspan is calling for Congress to let the Bush tax cuts die.
He hasn't all of a sudden become a liberal Democrat. Instead, according to Bloomberg News, Greenspan comes at his recommendation as a deficit hawk.
Greenspan, who as the nation's top central banker in 2001 and 2003, pushed for the Bush tax cuts, now says that was a mistake. He made the statement during the recording of a Bloomberg TV show that will run over the weekend.
My friend, Bloomberg reporter Mike Dorning, writes:
Former Federal Reserve Chairman Alan Greenspan, whose backing of George W. Bush’s 2001 tax cuts helped persuade Congress to pass them, said lawmakers should allow the reductions to expire at the end of this year.
“They should follow the law and let them lapse,” Greenspan said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff,” citing a need for the tax revenue to reduce the federal budget deficit...
... Greenspan, in a telephone conversation after his Bloomberg TV interview was taped, said his position is that all the expiring Bush tax cuts should end, for middle-class and high- income families alike.
Ending the cuts “probably will” slow growth, Greenspan, 84, said in the TV interview. The risk posed by inaction on the deficit is greater, he said.
“Unless we start to come to grips with this long-term outlook, we are going to have major problems,” said Greenspan, who led the U.S. central bank from 1987 to 2006. “I think we misunderstand the momentum of this deficit going forward.”
How large an impact Greenspan's view on the Bush tax cuts will have is an open question. His political capital has fallen on Capitol Hill since he ended his 18-years plus tenure as Fed chair in 2006 and the start of the credit crunch the following year.
He has been faulted for contributing to the financial implosion through a blind faith in the self-correcting powers of capital markets, a faith he has since foresworn.
Still, if you want to end some if not all of the Bush tax cuts, as President Barack Obama says he does, Greenspan, a Republican, could prove a useful ally, providing  political cover for Democrats when Republicans accuse them of being tax and spend liberals.