Kicking The Unemployed When They Are Down
Recent highly publicized national jobs reports showing private-sector gains being offset by public-sector losses have drawn attention to the macroeconomic costs of the austerity program already underway among state and local governments, and gaining steam in Washington. But the effect on the most vulnerable Americans–particularly those out of work–is rarely examined in any systematic way.
At The American Prospect, Kat Aaron has put together a useful if depressing summary of actual or impending cutbacks (most initiated by the states, some by Congress) in key services for the unemployed and others suffering from economic trauma. These include unemployment insurance, job retraining services, and family income supports. In some cases, federal funds added by the 2009 stimulus package are running out. In others, the safety net is being deliberately shredded.
A recent report from the Center for Budget and Policy Priorities notes that the most important family income support program, TANF (the “reformed” welfare block grant first established in 1996) is becoming an object of deep cuts in many states, precisely at the time it is most needed:
States are implementing some of the harshest cuts in recent history for many of the nation’s most vulnerable families with children who are receiving assistance through the federal Temporary Assistance for Needy Families (TANF) block grant. The cuts will affect 700,000 low-income families that include 1.3 million children; these families represent over one-third of all low-income families receiving TANF nationwide.A number of states are cutting cash assistance deeply or ending it entirely for many families that already live far below the poverty line, including many families with physical or mental health issues or other challenges. Numerous states also are cutting child care and other work-related assistance that will make it harder for many poor parents who are fortunate enough to have jobs to retain them.
This is perverse precisely because such programs were once widely understood as “counter-cyclical”–designed to temporarily expand in tough economic times. Not any more, says CPBB:
To be effective, a safety net must be able to expand when the need for assistance rises and to contract when need declines. The TANF block grant is failing this test, for several reasons: Congress has level-funded TANF since its creation, with no adjustment for inflation or other factors over the past 15 years; federal funding no longer increases when the economy weakens and poverty climbs; and states — facing serious budget shortfalls — have shifted TANF funds to other purposes and have cut the TANF matching funds they provide.
This retrenchment, mind you, is what’s already happening, and does not reflect the future blood-letting implied by congressional Republican demands for major new cuts in federal-state safety net programs–most famously Medicaid, which virtually all GOPers want to convert into a block grant in which services are no longer assured.
If, as appears increasingly likely, the sluggish economy stays sluggish for longer than originally expected, and both the federal government and states continue to pursue Hoover-like policies of attacking budget deficits with spending cuts as their top priority, it’s going to get even uglier down at the level of real-life people trying to survive. If you are unlucky enough to live in one of those states where governors and legislators are proudly hell-bent on making inadequate safety-net services even more inadequate or abolishing them altogether, it’s a grim road ahead.
By: Ed Kilgore, Democratic Strategist, June 10, 2011
Mitt Romney’s Flawed View Of Freedom
The bales of hay were stacked strategically in the hope that they’d make it into the television screen. The sturdy white barn nearby provided an image worthy of a Christmas card, the symbol of a solid, calm, industrious and confident country. The slogan behind the candidate, “Believe in America,” did not invite debate.
Whatever the punditocracy may have made of Mitt Romney’s formal announcement of his presidential candidacy last week, we could all give the guy credit for trying to reassure us that not everything in politics has changed.
In an age of media flying circuses where you never know who is running for president and who is just trying to boost book sales and speaking fees, Romney did it the old-fashioned way. He really, really wants to be president, and he offered pretty pictures to encourage us to watch him saying so. It was the venerable liturgy of our civil religion.
Unfortunately for Romney, he barely got his moment in the sun because dark clouds rolled in. Sarah Palin and Rudy Giuliani showed up in New Hampshire on the former Massachusetts governor’s magical day, underscoring why Romney is plagued by the word “putative,” which almost always appears before “front-runner.”
But Romney’s travails are about more than the man himself. They speak to the
condition of a party that won’t let him embrace his actual record and constantly
requires him — and all other Republicans — to say outlandish things.
Romney’s greatest political achievement, the Massachusetts health-care law, was a genuinely masterful piece of politics and policy. The New Yorker’s Ryan Lizza recently wrote a superb article about how Romney got the plan passed. The campaign should be
reproducing the article in bulk. Instead, Romney’s lieutenants will pray that Republican primary voters never read the story. Working with those horrid Democrats to pass any sort of forward-looking government program is now forbidden.
When Romney spoke at Doug and Stella Scamman’s Bittersweet Farm, he was guarded in talking about his health plan, saying he “hammered out a solution that took a bad situation and made it better. Not perfect, but it was a state solution to our state’s
problem.” The crowd gave him modest cheers when he got to the part about health
care being a state problem.
But he received what was, by my reckoning, his loudest response when he pledged “a complete repeal of Obamacare.” That’s where the GOP heart is, and Palin and Giuliani both got into most of the Romney announcement stories by bashing him on health care. When you’re forced to tiptoe around your accomplishments, it’s no wonder you get accused of shifting your shape.
Yet it was Romney himself who exposed contemporary conservatism’s core flaw.
“Did you know,” he asked, “that government — federal, state and local — under
President Obama, has grown to consume almost 40 percent of our economy? We’re
only inches away from ceasing to be a free economy.”
Actually, the federal government of which Obama is in charge “consumes” about a quarter of the economy — and this after a severe recession, when government’s share
naturally goes up.
But even granting Romney his addition of spending by all levels of government, the notion that we are “inches away from ceasing to be a free economy” is worse than absurd. It suggests that the only way we measure whether an economy and a country are “free” is by toting up how much government spends.
Are we less “free” because we spend money on public schools and student loans, Medicare and Medicaid, police and firefighters, roads and transit, national defense and environmental protection? Would we be “freer” if government spent zero percent of the economy and just stopped doing things?
Romney, presumably, doesn’t think this, but the logic of what he said points
in exactly that direction. We thus confront in 2012 nothing short of a fundamental argument over what the word “freedom” means. If freedom, as the conservatives seem to insist, comes down primarily to the quantity of government spending, then a country such as Sweden, where government spends quite a lot, would be less “free” than a right-wing dictatorship that had no welfare state and no public schools — but also didn’t allow its people to speak, pray, write or organize as they wish.
Many of us “believe in America” because we believe its history shows that our
sacred liberties are compatible with a rather substantial government that invests in efforts to expand the freedom from want, the freedom from fear, the freedom from unfair treatment and the freedom to improve ourselves. That, as the politicians like to say, is what this campaign is all about.
By: E. J. Dionne, Opinion Writer, The Washington Post, June 6, 2011
Slow Learners: Social Security Privatization Still A GOP Goal
Congressional Republicans have faced all kinds of heat recently for their misguided campaign to end Medicare and replace it with a privatized voucher system. It’s tempting to think the GOP would not only back away from this crusade, but would also learn a valuable lesson about Americans’ appreciation for bedrock domestic social programs.
Alas, that’s not the case. A few days ago, Rep. Pete Sessions of Texas, a member of the House Republican leadership, unveiled the “Savings Account For Every American Act,” which would allow Americans to withdraw from the Social Security system and opt into a privatized system.
Of course, with Social Security functioning as a pay-as-you-go program, if workers “opt out” of the system, Social Security would either (a) crumble with insufficient funds; or (b) need Congress to spend more money to make up the difference. How would Sessions address this? By all appearances, he hasn’t thought that far ahead.
Democrats, not surprisingly, were only too pleased yesterday to go on the offensive.
Democratic Congressional Campaign Committee Chairman Steve Israel (D-N.Y.) on Tuesday predicted that House Republican plans to let workers opt out of Social Security would fail as voters realize how it will threaten their retirement.
“Seniors who have paid into Social Security through a lifetime of hard work shouldn’t end up in a risky privatization scheme to gamble their retirement on Wall Street,” Israel said. “The public has rejected this kind of Social Security privatization in the past and will again.”
Israel accused Republicans of looking to resolve the government’s fiscal crisis by scaling back Medicare and Social Security, while ignoring higher corporate taxes.
In fairness, I should note that “Savings Account For Every American Act” (or, “SAFE Act”) isn’t exactly on a fast track to the House floor. After being introduced late last week the bill, H.R.2109, has an underwhelming six co-sponsors. That’ll likely increase, but Social Security’s supporters probably don’t need to leap into action to defeat the bill just yet.
Still, there’s something truly amazing about the fact that any Republican officials would pursue this at all. The American mainstream has shown, over and over again, that Social Security privatization is a non-starter. The very idea pushed Bush’s presidency into a downward trajectory in 2005, and it never recovered. Even Paul Ryan, when shaping the radical House GOP budget plan, left Social Security out of the equation.
For that matter, after the economy crashed in 2008, I assumed it’d be a long while until Republicans started talking up Social Security privatization again.
Perhaps Pete Sessions and his cohorts are slow learners?
I suppose the real fun would be putting the Republican presidential field on the spot. “Mr. Romney, a member of the House Republican leadership is pushing legislation to privatize Social Security. If such a bill reached your desk as president, would you sign it?”
Inquiring minds want to know.
Update: One of the six co-sponsors is Republican Caucus Chairman Jeb Hensarling of Texas. This is relevant because it means two members of the GOP leadership are on board with this proposal.
By: Steve Benen, Contributing Writer, Washington Monthly-Political Animal, June 8, 2011
Memo To Rep Eric Cantor: Blame Is A Tricky Thing
In April, House Democrats “celebrated” the 100th day of the new Republican rule in the chamber. Most notably, Dems emphasized the fact that the GOP, despite a year of campaign promises, haven’t even considered any jobs bills, with Republicans instead preferring to waste time on pointless gamesmanship and culture war crusades.
As if to say, “Oh yeah?” House Majority Leader Eric Cantor (R-Va.) turned to Twitter to respond to the Democratic argument:
And here we are six weeks later.
Cantor said that “everything seems to be going in the wrong direction,” but denied that Republicans deserve a share of the blame for the stagnant economic recovery.
Well, Eric, blame is a tricky thing, isn’t it?
Even in April, Cantor’s argument was foolish. Indeed, by Cantor’s reasoning, job growth should be impossible. How can all of these jobs be created in the midst of Obama-induced uncertainty? And with crushing tax rates so high? And a massive debt? And with pesky regulations stifling the engines of ingenuity?
We were apparently supposed to believe that Republicans’ mere presence in the House of Representatives is enough to overcome these burdensome hurdles.
That is, until the jobs picture deteriorates, at which point, Republicans bear no responsibility whatsoever.
Heads Cantor wins; tails Dems lose.
By: Steve Benen, Contributing Writer, Washington Monthly-Political Animal, June 6, 2011
Why I Support “The Ronald Reagan Tax Reform Act of 2011”
Ten years ago today, the wealthiest Americans caught a multi-billion dollar break from their benefactor, then-president George W. Bush. In the decade since, through two wars, natural disasters, a plummeting economy and a soaring debt, the wealthiest Americans have gotten to keep those Bush tax cuts. Happy birthday, everybody!
As the Republican Party now lines itself up behind Rep. Paul Ryan on his mission to cut the resulting deficit on the backs of working people and the elderly, I find myself surprisingly and strangely nostalgic for another GOP hero, whose legacy, at least when it comes to taxes, has become woefully misunderstood. Can it be that I find myself nostalgic for Ronald Reagan?!
Of course, I’m not alone in my nostalgia. I’m joined by the entire Republican leadership in this, but I think our reasons may be quite a bit different. In the spirit of unity, I’d like to suggest to Republicans in Congress that they look closely at the record of their favorite 20th century hero and adopt yet another policy named after the Gipper. I’m no fan of much of President Reagan’s legacy, but in a new spirit of bipartisanship, and historical accuracy, I’d like to present Republicans in Congress with an idea: the Ronald Reagan Tax Reform Act of 2011.
A key element of the Reagan lore believed by today’s GOP is that Reagan’s embrace of “trickle-down economics” is what caused any and all economic growth since the 1980s. In fact, after Reagan implemented his initial tax-slashing plan in 1981, the federal budget deficit started to rapidly balloon. Reagan and his economic advisers were forced to scramble and raised corporate taxes to calm the deficit expansion and stop the economy from spiraling downward. Between 1982 and 1984, Reagan implemented four tax hikes. In 1986, his Tax Reform Act imposed the largest corporate tax increase in U.S. history. The GDP growth and higher tax revenues enjoyed in the later years of the Reagan presidency were in part because of his willingness to compromise on his early supply-side idolatry.
The corporate tax increases that Reagan implemented — under the more palatable guise of “tax reform” — bear another lesson for Republicans. The vast majority of the current Republican Congress has signed on to a pledge peddled by anti-tax purist Grover Norquist, which beholds them to not raise any income taxes by any amount under any circumstances, or to bring in new revenue by closing loopholes. This pledge, which Rep. Ryan’s budget loyally adheres to, in effect freezes tax policy in time — preserving not only Bush’s massive and supposedly temporary tax cuts for the wealthiest Americans, but also a vast mishmash of tax breaks and loopholes for specific industries won by well-funded lobbyists.
The problem has become so great that many giant American corporations have become so adept at exploiting loopholes in the tax code that they paid no federal income taxes at all last year — if Republicans in Congress follow their pledge to Norquist, they won’t be able to close a single one of the loopholes that are allowing corporations to avoid paying their fair share.
Even Reagan recognized the difference between just plain raising taxes and simplifying the tax code to cut out loopholes that subsidize corporations. In 1984, he arranged to bring in $50 billion over three years, mainly by closing these loopholes. His 1986 reform act not only included $120 billion in tax hikes for corporations over five years, it also closed $300 billion worth of corporate loopholes.
These kinds of tax simplification solutions are available for Congress if they want them. As I wrote in April, nixing Bush’s tax cut’s for the wealthiest Americans would help the country cut roughly $65 billion off the deficit in this year alone. Closing loopholes that allow corporations to shelter their income in foreign banks would bring in $6.9 billion. Eliminating the massive tax breaks now enjoyed by oil and gas companies would yield $2.6 billion to help pay the nation’s bills.
But before Republicans in Congress change their math, they have to change their rhetoric — and embrace the reality of the economic situation they face and the one that they’d like to think they’re copying. In 1986, during the signing ceremony for the Tax Reform Act, Reagan explained that “vanishing loopholes and a minimum tax will mean that everybody and every corporation pay their fair share.”
It’s time for the GOP to take a page from their hero’s playbook. If they do so, they might be able to find some allies that they never thought possible. It’s time for “everybody and every corporation to pay their fair share.” We can all get along. Sign me up for “The Reagan Tax Reform Act of 2011.”
By: Michael B. Keegan, President, People For The American Way, Published in Huffington Post Politics, June 7, 2011
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 