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“Talk Of Refusing To Raise The Debt Limit Is Just That—Talk”

The debt limit is the maximum amount of debt the federal government can legally issue at a point in time. The current limit will be reached in the next few months, prompting discussion over whether Congress should raise the limit. As with so many deliberations in Washington, though, the popular discussion on this topic is shrouded in confusion and ignorance, and masks the real issues.

 The underlying issue is simple: If you spend your income on things you want, and the charges then show up the following month on your credit card bill, would you pay those charges? Yes, of course you would. You’ve made purchases and the bill has come due.

That’s the whole question about raising the debt limit—whether Congress should allow the government to pay for spending that has already been approved by Congress. (Remember, it is Congress that authorizes all federal spending.) The answer, of course, is yes.

Now, as you’re paying your credit card bill, you may well conclude that you are spending too much or that you need to earn more income to pay for your current standard of living. But that would be a separate issue, and stiffing the people who supplied the goods you just bought not only wouldn’t resolve that problem, it would in fact make solving it harder, because your credit rating might fall if you don’t pay what you already owe.

Likewise, the separate problem for the U.S. government is how to deal with our dismal fiscal future. The nation needs to resolve the looming fiscal imbalance through spending cuts and tax increases. Not paying the bills we already owe—that is, not raising the debt limit—not only won’t solve the real problem, it would actually make a solution more difficult by undercutting the government’s creditworthiness.

In short, raising the debt limit has nothing to do with controlling future spending or with raising the taxes necessary to pay for future spending. It is just a matter of paying bills that we’ve already incurred.

Raising the debt limit is a completely ordinary event. The limit has been raised 74 times in the last 50 years and 10 times in the last 10. Debt limit increases are associated with both Republicans and Democrats. When federal debt approaches the limit, the president typically favors raising the limit and the other political party demagogues the move. That is exactly what is happening right now.

Talk of refusing to raise the debt limit is just that—talk. Not raising the limit would require Congress to annually find about $1.3 trillion in federal tax increases or spending cuts—a set of policy changes larger than the revenues currently raised by the individual income tax. So far, the legislators who say they oppose a debt limit increase have not come forth with anything near such a plan. Nor should you expect them to. They are just blowing smoke. Eventually, they will agree to raise the limit.

While voters and members of Congress may find it cathartic to channel their outrage and frustration at the underlying budget situation onto the current debt limit discussion, the real question is how to adjust future spending and taxes to bring about future fiscal stability and sanity. The sooner we get to that discussion, the better.

Refusing to raise the debt limit not only would not help solve that problem, it would actually make a solution much harder to achieve.

By: William Gale, Senior Fellow, The Brookings Institute, U. S. News and World Report, March 28, 2011

March 29, 2011 Posted by | Congress, Debt Crisis, Deficits, Economy, Federal Budget, Politics, Voters | , , , , , , , | Leave a comment

What’s Really Driving The GOP’s Abortion War

The economy is reeling and we’re in three wars, but Republicans across the country are focused on…abortion?

When Republicans profited from the miserable economy to sweep up huge wins in last fall’s election, most political watchers figured they knew what was coming: budget cuts, privatization of more government functions, and tax cuts for the wealthy. The push to dismantle public sector unions has been a bit of a surprise, but not a jarring one.

But what seems to have thrown everyone — save for a handful of embittered and neglected pro-choice activists — for a loop is the way Republican lawmakers at both the national and state levels have focused so intently on the uteruses of America. Republicans appear to believe that the women of America have wildly mismanaged these uteruses in the four decades since the Supreme Court gave them control over them — and now that Republicans have even a little bit of power, they’re going to bring this reign of female tyranny over uteruses to an end.

After all, the Republican House speaker, John Boehner, has identified limiting women’s access to abortion and contraception as a “top priority” — this with the economy is in tatters and the world in turmoil. Boehner’s and the GOP’s abortion fixation raises an obvious question: Why now, when there are so many other pressing issues at stake?

There isn’t just one explanation. The assault on reproductive rights is intensifying now because of a convergence of several otherwise unrelated events that have created the perfect moment for the anti-choice movement to go for the kill.

Republicans have managed to score a couple of major victories against women’s rights in the past few years. Both of the main obstacles to dismantling reproductive rights — the Supreme Court and the Democrats — have buckled under anti-choice pressure, emboldening the movement to demand even more, including rollbacks on contraception access.

In 2007, the Supreme Court, with a 5-4 vote, upheld the Partial Birth Abortion Act, which not only set a precedent of the court validating a ban on an abortion procedure necessary to preserve some women’s lives, but also introduced a new justification to limit women’s rights. Justice Anthony Kennedy argued in the majority opinion that the D&X procedure could be banned in order to save women from the possibility of regret down the road. After this ruling, anti-choice bills sprung up like weeds, many of them rooted in this same assumption that women are too silly to be trusted to make their own decisions. Waiting periods, ultrasound requirements and forced “counseling” all make accessing abortion that much harder — even as each step is dressed up as protection for women against their own flightiness and inability to make good decisions.

But the bigger victory was getting a Democratic president to sign an executive order barring insurance companies from offering abortion coverage to customers who are using federal subsidies to pay for insurance. Barack Obama signed the order under duress; there was no way to pass his healthcare reform bill without doing so. But the lesson for Republicans was clear: When it comes to reproductive rights, they don’t actually need to be in charge to get their way. If reproductive rights can be exploited to nearly derail healthcare reform while the Democrats control Congress and the presidency, think of how much leverage the issue gives them now that they’ve gained control of the U.S. House and a bunch of new statehouses.

It’s hard to overstate how much Republican energy is invested in bringing the uteruses of America under right-wing control. The House went into an anti-choice frenzy upon being sworn in in January, passing two bills that would eliminate private insurance funding for abortion, one that would dramatically cut funding for international family planning, and the Pence Amendment, which would ban Planned Parenthood from receiving any federal funding. And in case the Pence Amendment doesn’t work, the House also zeroed out all funding for Title X, which subsidizes reproductive healthcare for low-income patients, in the continuing resolution that funds the federal budget.

For the right, rolling back reproductive rights is considered a worthy goal in its own right, but since the issue could also provoke a budget showdown that could result in a government shutdown, it’s also a useful tool in their effort to force Democrats to blink. As with their push to bust unions at the state level, Republicans stand to gain electorally by wreaking havoc on the pro-choice movement and undermining its ability to get out the vote for Democrats.

On the state level, an unprecedented number of anti-choice bills are being introduced in response to the perceived anti-choice bent of the Supreme Court. Florida alone has introduced 18 separate anti-choice bills. Gov. Rick Perry of Texas has declared mandatory ultrasounds for abortion patients an emergency priority, and fast-tracked it through the Legislature. Three separate states have introduced bills that could legalize domestic terrorism against abortion providers, though a bill in South Dakota was withdrawn under pressure. Instead, that state’s Legislature moved on to pass the most draconian abortion law in the country, one that would require a woman to wait 72 hours for an abortion and listen to a lecture from an anti-choice activist before having an abortion. These examples represent just a tiny fraction of the anti-choice bills percolating through state legislatures.

Maybe this is all surprising. After all, haven’t we heard for the last two years that the Tea Party is more libertarian and less socially conservative? If you bought that line, congratulations — you’re ensconced in Beltway wisdom. The truth is that a new name for the same old conservative base hasn’t changed the nature of that base. Just as before, the “small government” conservatives and the religious right have a great deal of overlap. With gay rights waning as a powerful wedge issue, keeping the religious right motivated and ready to vote is harder than ever. Reproductive rights creates new incentives for church-organized activists to keep praying, marching, donating and, most important, voting for the GOP.

 

By: Amanda Marcotte, Salon War Room, March 27, 2011

March 28, 2011 Posted by | Abortion, Congress, Conservatives, Elections, GOP, Neo-Cons, Planned Parenthood, Politics, Pro-Choice, Republicans, Right Wing, State Legislatures, States, Supreme Court, Women, Womens Rights | , , , | Leave a comment

Want To Cut The Deficit? Restore Fair Taxes On Corporations And The Wealthy

If the deficit hawks in Congress are serious about righting our economic ship and reducing deficits in the federal budget and many state capitols, it would we worth listening to the voices rising from the streets suggesting a very different solution than more cuts in safety net programs, education, pensions, and worker’s rights.Greed at the upper echelons of our society is bankrupting our governments at every level. “Suggesting corporations and the wealthiest Americans pay their fair share,” writes Deborah Burger, “usually earns one the reproof of advocating class warfare. But class warfare when practiced by the elites is apparently perfectly acceptable. The average CEO who was paid $27 for every dollar earned by an employer 25 years ago – during which wages have mostly fallen or stagnated – now gets a ratio of about $275 to $1.”

This is not a budget fight, it’s a fight for the future of an America in which everyone should be able to retire in dignity, not worry about whether they can go to the doctor when they get sick, or whether there will still be schools for their kids.

How will we pay for it? By increasing the revenues from those who can most afford it, not by punishing those who have the least. By requiring corporations and the wealthiest individuals to pay their fair share, and stop blaming working people for an economic crisis created by Wall Street and exploited by their politician acolytes.

We’ve all heard the arguments. Pass more corporate tax breaks because that’s what makes the economy grow. Except it doesn’t.

Corporate profits per employee are at record levels. At $1.6 trillion, third quarter 2009 corporate profits were the highest ever recorded. Yet official unemployment still hovers near 9 percent, and the real jobless number is probably double that. Whatever big corporations are doing with their record profits, they are not hiring more workers.

Or the argument that our 35 percent corporate tax rate is one of the highest in the world. Except few if any major corporations pay anywhere near that amount. Half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years from 1998 to 2005, according to a recent Government Accounting Office study.

How do they accomplish this? Pages of corporate tax loopholes that render the supposed tax rate meaningless, loopholes not available to the average working family.

Who are some of those tax scofflaws? Bank of America and Citigroup, two of the financial institutions that, unlike workers did actually create the financial meltdown, paid no taxes in 2009. Boeing, just awarded a new $35 billion contract by the federal government to build airplanes, also paid no taxes between 2008 and 2010 despite recording $10 billion in profits those year, reports Citizens for Tax Justice.

Where’s the shared sacrifice from these corporate giants? Not from General Electric which, as the New York Times reported March 24, made $14.2 billion in profits in 2010, but paid no U.S. taxes, and was rewarded with the appointment of their top executive to head President Obama’s Council on Jobs and Competitiveness. Apparently paying no taxes is a model for how to be competitive.

Then there’s the wealthiest Americans who won a two year extension on tax breaks in December and also profited from the near elimination of estate taxes, at a time when the richest 5 percent of Americans control 23 percent of total income, compared to just 12 percent for the 40 percent at the bottom.

According to Merrill Lynch Global Wealth Management and Capgemini Consulting, there were about 3 million high net worth individuals and ultra high net wealth individuals in the US in 2009, those with investable assets, excluding primary residences and consumables, of from $1 million to $30 million.

Calculations by the Institute for Health and Socio-Economic Policy, research arm of National Nurses United, shows that a one-time wealth surcharge of 14% on those assets would more than pay for the $1.6 trillion budget deficit projection for 2011. Or, it would support about 33.8 million households at the national real median income level for 2008, pay for a year’s worth of AIDS medication for about 142 million patients, or create 34 million jobs at $50,000 per year.

In other words, we could more than balance our federal and state budgets without cutting Social Security or slashing pensions for public servants or depriving students of access to a decent education or far too many Americans of access to healthcare.

Turn off the Fox News echo chamber and you can hear the sounds of those calling for economic justice and a more fair tax system every day in the streets of Madison, Columbus, Indianapolis, and other cities across America. They have opened a door that will not be closed, and their voices are getting louder.

By: Deborah Burger, Originally published March 25, 2011, CommonDreams.org

March 27, 2011 Posted by | Congress, Corporations, Deficits, Economy, Federal Budget, Politics, States | , , , , , , | Leave a comment

A Minimum Wage Increase Will Not Kill Jobs

As the nation grapples with a jobs crisis and unemployment hovers near 9 percent, it is easy for policy makers to forget the plight of those who work but earn very little. There are about 4.4 million workers earning the minimum wage or less, according to government statistics. This amounts to about 6 percent of workers paid by the hour. They need a raise.

Today, a worker laboring 40 hours a week nonstop throughout the year for the federal minimum wage could barely keep a family of two above the federal poverty line. Though it rose to $7.25 an hour in 2009, up $2.10 since 2006, the minimum wage is still lower than it was 30 years ago, after accounting for inflation. It amounts to about $1.50 an hour less, in today’s money, than it did in 1968, when Martin Luther King Jr. and Robert Kennedy were killed, Richard Nixon was elected president and the economy was less than a third of its present size.

The minimum wage has many opponents among big business and Congressional Republicans. In Nevada, the Las Vegas Chamber of Commerce is pushing to repeal the state’s minimum wage, a whopping $8.25 an hour. Representative Darrell Issa, the California Republican, has proposed a bill in the House that would effectively cut the minimum wage in states where it was higher than the federal threshold by allowing employers to count health benefits toward wages.

Opponents argue that raising the minimum wage would inevitably lead to higher unemployment, prompting companies to cut jobs and decamp to cheaper labor markets. It is particularly bad, the argument goes, to raise it in a weak labor market. Yet with unemployment likely to remain painfully high for years to come, this argument amounts to a promise that the working poor will remain poor for a long time.

What’s more, we know now that the argument is grossly overstated. Over the past 15 years, states and cities around the country have rushed ahead of the federal government to impose higher minimum wages. Economists analyzing the impact of the increases on jobs have concluded that moderate increases have no discernible impact on joblessness. Employers did not rush off to cheaper labor markets in the suburbs or across state lines for a simple reason: that costs money too.

The most recent research, by John Schmitt and David Rosnick at the Center for Economic and Policy Research, found that San Francisco’s minimum wage jump to $8.50 in 2004 — well above the state minimum of $6.75 — improved low-wage workers’ incomes and did not kill jobs. An even bigger jump in Santa Fe, N.M., the same year — from $5.15 to $8.50 — had a similar effect.

Despite evidence to the contrary, businesses and Republicans may keep pushing against the minimum wage — using the jobs crisis now to clinch their argument. They should be disregarded, because their argument is wrong and the United States is too rich to tolerate such an underclass.

By: Editorial, The New York Times, March 25, 2011

March 26, 2011 Posted by | Big Business, Congress, Conservatives, Economy, Income Gap, Jobs, Middle East, Minimum Wage, Politics, Republicans, States, U.S. Chamber of Commerce, Unemployed | , , , , , | Leave a comment

One Hundred Years Of Multitude And The New American Immigration Conniption

One hundred years ago, during the last great American conniption over immigration, the United States government went to unheard-of effort and expense to peer deep into the bubbling melting pot to find out, as this paper put it, “just what is being melted.”

A commission led by Senator William Dillingham, a Republican of Vermont, spent four years and $1 million on the project. Hundreds of researchers crisscrossed the country bearing notebooks and the latest scientific doctrines about race, psychology and anatomy.

They studied immigrants in mining and manufacturing, in prisons and on farms, in charity wards, hospitals and brothels. They drew maps and compared skulls. By 1911, they published the findings in 41 volumes, including a “Dictionary of Races or Peoples,” cataloging the world not by country but by racial pedigree, Abyssinians to Zyrians.

Forty-one volumes, all of it garbage.

The Dillingham Commission is remembered today, if it is remembered at all, as a relic of the age of eugenics, the idea that humanity can be improved through careful breeding, that inferior races muddy the gene pool. In this case, it was the swelling multitudes from southern and eastern Europe — Italians, Russians, Jews, others — who kept America’s Anglo-Saxons up at night.

I pored over the brittle pages of the report recently at the New York Public Library (they are available online). It was a cold plunge back to a time before white people existed — as a generic category, that is. Europeans were a motley lot then. Caucasians could be Aryan, Semitic or Euskaric; Aryans could be Teutonic, Celtic, Slavonic, Iranic or something else. And that was before you got down to Ruthenians and Russians, Dalmatians and Greeks, French and Italians. Subdivisions had subdivisions. And race and physiognomy controlled intelligence and character.

“Ruthenians are still more broadheaded than the Great Russians,” we learn. “This is taken to indicate a greater Tartar (Mongolian) admixture than is found among the latter, probably as does also the smaller nose, more scanty beard, and somewhat darker complexion.” Bohemians “are the most nearly like Western Europeans of all the Slavs.” “Their weight of brain is said to be greater than that of any other people in Europe.”

See if you can identify these types:

A) “cool, deliberate, patient, practical,” “capable of great progress in the political and social organization of modern civilization.”

B) “excitable, impulsive, highly imaginative,” but “having little adaptability to highly organized society.”

C) possessing a “sound, reliable temperament, rugged build and a dense, weather-resistant wiry coat.”

A) is a northern Italian. B) is a southern Italian. C) is a giant schnauzer, according to the American Kennel Club. I threw that in, just for comparison.

The commission had many recommendations: bar the Japanese; set country quotas; enact literacy tests; impose stiff fees to keep out the poor.

These poison seeds bore fruit by the early 1920s, with literacy tests, new restrictions on Asians and permanent quotas by country, all to preserve the Anglo-Saxon national identity that was thought to have existed before 1910.

It’s hard not to feel some gratitude when reading the Dillingham reports. Whatever else our government does wrong, at least it no longer says of Africans: “They are alike in inhabiting hot countries and in belonging to the lowest division of mankind from an evolutionary standpoint.”

But other passages prompt the chill of recognition. Dillingham’s spirit lives on today in Congress and the states, in lawmakers who rail against immigrants as a class of criminals, an invading army spreading disease and social ruin.

Who brandish unlawful status as proof of immigrants’ moral deficiency rather than the bankruptcy of our laws. Who condemn “illegals” but refuse to let anyone become legal. And who forget what generations of assimilation and intermarriage have shown: that today’s scary aliens invariably have American grandchildren who know little and care less about the old country.

It’s no longer acceptable to mention race, but fretting about newcomers’ education, poverty and assimilability is an effective substitute. After 100 years, we’re a better country, but still frightened by old shadows.

By: Lawrence Downs, Editorial Observer, The New York Times, March 25, 2011

March 26, 2011 Posted by | Congress, Immigrants, Immigration, Liberty, Politics, Republicans, State Legislatures, States | , , , , , , , , | Leave a comment