“GOP Response; The Breadbags Of Empathy”: From Tiny Booties Made From Hostess Twinkie Wrappers To Bidding For Plutocrats
Imagine going to the doctor and saying, “My back is killing me. I can barely move. What can you do to help me? Should we do an X-ray? Physical therapy? Medication?” And the doctor responds, “Yeah, I hurt my back once. It was awful. So I know exactly what you’re feeling. Anyway, thanks for coming in—just see the receptionist on the way out to pay your bill.”
That’s not too far off from what we heard from Senator Joni Ernst in the GOP response to the State of the Union address last night. I’m particularly interested in this part:
As a young girl, I plowed the fields of our family farm. I worked construction with my dad. To save for college, I worked the morning biscuit line at Hardees.
We were raised to live simply, not to waste. It was a lesson my mother taught me every rainy morning.
You see, growing up, I had only one good pair of shoes. So on rainy school days, my mom would slip plastic bread bags over them to keep them dry.
But I was never embarrassed. Because the school bus would be filled with rows and rows of young Iowans with bread bags slipped over their feet.
Our parents may not have had much, but they worked hard for what they did have.
These days though, many families feel like they’re working harder and harder, with less and less to show for it.
Because America is still the home of the world’s most creative and inspiring strivers, within minutes people were not only posting pictures of themselves with bread bags on their feet to Twitter, some even crafted shoes out of bread to photograph. But what, precisely, is the point of the bread bag story supposed to be?
The point is affinity, saying to ordinary people, in Christine O’Donnell’s immortal words, “I’m you.” I understand your struggles and fears, because I’ve experienced them. I don’t need to walk a mile in your shoes to feel your pain, because I’ve already done it, though mine were covered in bread bags. At a time like this, Ernst’s ability to tell stories about her hardscrabble roots is no doubt one of the big reasons Republican leaders chose her to deliver their response.
There’s a second part of this message that no Republican is going to lay out too explicitly, and Ernst certainly doesn’t, which is that because I’m just like you, when it comes time to make decisions about the policies that will affect you, I will have your interests at heart.
But there’s a problem with that, because despite the years she spent trudging through the snow in her bread bag feet, Joni Ernst’s beliefs about economics are no different from Mitt Romney’s, Jeb Bush’s, or those of any other Republican whose childhood feet were shod in loafers hand crafted from the finest Siberian tiger leather. There’s almost perfect unanimity within the GOP on economic issues, an agreement that the minimum wage should not be raised, that taxes on the wealthy are onerous and oppressive and should be reduced, that regulations on corporations should be loosened, and that government programs designed to help those of modest means only serve to make them indolent and slothful, their hands so atrophied that bootstrap-pulling becomes all but impossible.
But now that both parties agree that they must address economic inequality and stagnant wages, you really need to follow up the tale of long-ago hard times with some specifics about what you want to do now. And this is where things break down. When Ernst got to laying out the GOP economic agenda, here’s what she offered: First, the Keystone XL pipeline, which as an economic stimulus is a joke. For whatever combination of reasons—the fact that environmentalists hate it is the most important—Republicans have locked themselves into arguing that a project that will create at most a few thousand temporary jobs is the most important thing we can do to boost the American economy. Second, Ernst said, “Let’s tear down trade barriers in places like Europe and the Pacific.” Kind of vague there, but nobody likes trade barriers. She didn’t elaborate, however. And finally, “Let’s simplify America’s outdated and loophole-ridden tax code.” Which, again, nobody disagrees with in the abstract, but I doubt there are too many struggling families saying that their biggest problem is that the tax code is riddled with loopholes.
So that isn’t much of a program. But she did close by saying that America is “the greatest nation the world has ever known.” And it’s inspiring that someone like Joni Ernst can start life in the most modest of circumstances, fitted as a baby with tiny booties made from Hostess Twinkie wrappers, then graduate to bread bags as she learned to castrate hogs (they do help keep the blood off your one good pair of shoes), and eventually grow up to do the bidding of the nation’s noblest plutocrats. It shows what’s possible in this great country of ours.
By: Paul Waldman, Senior Writer, The American Prospect, January 21, 2015
“With Or Without You”: Obama Leaves Obstinate GOP Behind With State Of The Union
With his penultimate State of the Union address, President Obama gave the speech that Democrats have always wanted him to give.
After six years of hedges and qualification, the president finally offered a confident, full-throated defense of his economic record, and of his progressive vision of government.
“Tonight, after a breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999. Our unemployment rate is now lower than it was before the financial crisis,” the president declared. “More of our kids are graduating than ever before; more of our people are insured than ever before; we are as free from the grip of foreign oil as we’ve been in almost 30 years.”
“It’s now up to us to choose who we want to be over the next 15 years, and for decades to come,” Obama said. “Will we accept an economy where only a few of us do spectacularly well? Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort?”
The president went on to lay out a program of “middle-class economics,” featuring tax cuts for working families, the expansion of paid sick leave, free community college, new infrastructure spending, and a higher minimum wage. He also highlighted his administration’s work on several issues close to the hearts of liberals, such as combating climate change, protecting the rights of LGBT people around the world, closing the prison at Guantánamo Bay, defending the right to vote, and safeguarding elections from “dark money for ads that pull us into the gutter.”
While nothing the president proposed would have the impact of historically significant Obama-era achievements like the Affordable Care Act or the Dodd-Frank Wall Street reform law, most of his proposals poll extremely well with the American public. And Obama practically dared Republicans to stand in their way.
“These policies will continue to work, as long as politics don’t get in the way. We can’t slow down businesses or put our economy at risk with government shutdowns or fiscal showdowns,” Obama said. “We can’t put the security of families at risk by taking away their health insurance, or unraveling the new rules on Wall Street, or refighting past battles on immigration when we’ve got a system to fix. And if a bill comes to my desk that tries to do any of these things, it will earn my veto.”
The president’s speech featured few surprises (in fact, the White House released a full transcript of Obama’s remarks before he even entered the House chamber). But the official Republican response from newly elected senator Joni Ernst (R-IA) contained even fewer. Her sunny speech had almost nothing to do with what Obama proposed; in fact, just seconds in, she flatly acknowleged that “rather than respond to a speech, I’d like to talk about your priorities.”
Apparently, Republicans still think that those priorities include building the Keystone XL pipeline — which Ernst labeled the “Keystone jobs bill,” although it will create just 35 permanent positions — cutting taxes and spending, repealing the health care reform law, and little else.
“Americans have been hurting, but when we demanded solutions, too often Washington responded with the same stale mindset that led to failed policies like Obamacare,” Ernst lamented. “It’s a mindset that gave us political talking points, not serious solutions.”
That statement betrays Republicans’ central political problem in 2015. For years, they have claimed that President Obama’s policies would lead to disaster. But now, as the GOP takes full control of Congress, those “failed policies” have resulted in a booming economy — an irony that the president noted in his address.
“At every step, we were told our goals were misguided or too ambitious; that we would crush jobs and explode deficits,” Obama said. “Instead, we’ve seen the fastest economic growth in over a decade, our deficits cut by two-thirds, a stock market that has doubled, and health care inflation at its lowest rate in 50 years.”
Meanwhile, the GOP had no response except for the same plans that it pitched at the depth of the recession.
It’s no secret that Republicans will dismiss most of the proposals that President Obama put forth during his speech. But the rest of the nation might not follow suit. According to a new NBC News-Wall Street Journal poll, 45 percent of Americans are happy with the state of the economy — an 11-year high — and 49 percent approve of Obama’s handling of the issue. Democrats’ economic message is starting to resonate, and Republicans still don’t have a serious plan of their own.
If they don’t find one shortly, they risk seeing the national debate leave them behind just as they hope to win the White House in 2016.
By: Henry Decker, The National Memo, January 21, 2015
“Republican Fear Campaign Running Out Of Steam”: Obama Dares GOP To Help The Middle Class In His State Of The Union
Can you remember a time when the political zeitgeist has ping-ponged the way ours has in just two months? The day after last November’s election, Barack Obama was finished. Now, two positive jobs reports and a 60-odd-cent-per-gallon drop in gasoline prices later, he’s the president again. And the Republicans have just taken power and have run Congress for only two weeks, but suddenly they’re kind of on the defensive.
Of course this isn’t to say that Obama is going to get a single plank of the ambitious agenda he laid out in the State of the Union Address through Congress. The Republicans still hold those cards.
But what’s happened in the last couple of months, and what Obama seized effectively with this speech, is this. The mood has changed. The public is open to ideas it wasn’t open to a year ago; even two months ago.
Politics in this country is really about only one thing at a time, and that one thing favors one party or the other. In 1981 and for a few years thereafter, it was about how oppressive the federal government was. Advantage Republicans. For a short time in the late 1980s, it was about how we’d vanquished the Soviet Union (and won a little side war). Advantage Republicans.
For a while in the 1990s, it was about building a future-oriented economy. Advantage Democrats. After 9/11, it was about security. Advantage Republicans. And so on. It’s a little more complicated than this, because thrown into these cycles we have the scandals and the social changes that all have some impact on how people think about things, but basically, this is how American politics rolls: We go through these eras, and the eras make the majority of people decide that one party or the other is better equipped to do something about the challenges.
And now, we seem to be—seem to be—entering an era in which the chief debate is going to be about expanding prosperity downward from the people who’ve enjoyed the lion’s share of the prosperity of the last 30 years. Not positive about that. But that’s the smell. Look at all those minimum-wage initiatives that passed on ballots last November, passed even by a comparatively conservative electorate. Look at Mitt Romney talking empathetically in recent days about the people he didn’t seem to care much about in 2012. Something has turned.
Obama has helped turn it—with a few speeches over the years, and certainly with some of his policies, like health care, which he defended in an impressively in-your-face way in this speech. But even a president can’t turn it himself. He needs luck. And finally he’s had some—the gas prices, the energy explosion, the jobs reports, all of them culminating in a sunnier public mood.
All that adds up to an atmosphere in which a majority of Americans are finally starting to add two and two and get four. The Republicans didn’t give them much. The Great Recession, most notably. Obama, to most of them, still hasn’t given them all that much either, but at least we’re out of that mess and things are finally looking up.
And when things are looking up, people are less anxious, and they can start thinking about things like free community college. In lousy economic times, free community college sounds to your average person like a bunch of airy-fairy liberal nonsense. Like something they’re going to be stuck paying for. In better economic times, it sounds to your average person like a not-half-bad idea, and something they or someone they know might even benefit from.
It’s all public psychology. We liberals have a hard time accepting this. That’s because of Keynes. Keynes, see, has taught us the concept of counter-cyclical investment: that when the economy is in dire straits, that is exactly when the government should be spending a boatload of money. It makes economic sense, to people who read a lot. But to average people, it doesn’t make any common sense. Common sense tells average people that when the economy is in dire straits, you tighten your belt and spend less. This is right for a family, but wrong for a government, which is the opposite of a family, economically speaking. And Lord did it infuriate liberals when Obama himself played into it. He gave these speeches—what, 2010, maybe—when he likened the government to a family sitting around the kitchen table deciding what expenses it needed to cut out.
No! Wrong, wrong, wrong, in economic terms. But in real-life political terms, he was right at least insofar as you can’t get people to think about longer-term economic goals when they’re out of a job, or underemployed. But once that’s turned, you can.
That is what’s turning now—not turned, but turning. And that is what is about to make our political conversation be about this new one thing: sharing the prosperity. The speech was not a great speech, a speech for the ages; but it did understand that, and it did tap into that. People are now willing to start thinking about longer-term economic goals. A quickie CNN poll found that the speech was extremely well-received: 51 percent very positive, 30 percent somewhat positive, only 18 percent negative.
That really should worry Republicans, no matter how many seats they have in Congress. Our politics is becoming about one big thing on which the Republicans have nothing to say. Actually, they do have something to say, and it’s “No!” They looked ridiculous, sitting on their hands, refusing to applaud simple and obvious things that have 60, 65 percent public support. I have a feeling more such moments await them.
By: Michael Tomasky, The Daily Beast, January 21, 2015
“This Isn’t The Debate Republicans Want To Have”: Republicans Befuddled By Obama Plan To Cut Middle-Class Taxes
Even President Obama’s most fervent opponents must acknowledge that he’s getting quite good at putting them on the defensive. Facing a Republican Congress and with only two years remaining in his presidency, he seems to come up with a new idea every couple of weeks to drive them up a wall. So he certainly wasn’t going to let the State of the Union address go by without using the opportunity — days of pre- and post-speech commentary, plus an audience in the tens of millions — to its utmost.
At Tuesday’s speech, Obama will announce a series of proposals meant to aid middle class and poor Americans and address inequality, most particularly an increase in the child care credit and a $500 tax credit for working couples (here’s the White House’s fact sheet on the proposals). To pay for it, investment and inheritance taxes on the wealthy would be increased and some loopholes that small numbers of the super-rich (like one Willard Romney) exploit will be closed. While the SOTU is often the occasion for dramatic announcements that are soon forgotten, this one lands in the center a debate that is looking like it will shape the upcoming presidential race. Naturally, Republicans are not pleased.
But if you listen carefully to what they’re saying, you’ll notice that they are barely mentioning the proposals for middle-class tax breaks which are supposed to be the whole purpose of this initiative; instead, all their focus is on the increases America’s noble job creators would have to endure in order to pay for it.
“Slapping American small businesses, savers and investors with more tax hikes only negates the benefits of the tax policies that have been successful in helping to expand the economy, promote savings, and create jobs,” said Orrin Hatch. “More Washington tax hikes and spending is the same, old top-down approach we’ve come to expect from President Obama that hasn’t worked,” said John Boehner’s spokesperson. “This is not a serious proposal,” said Paul Ryan’s flak. “We lift families up and grow the economy with a simpler, flatter tax code, not big tax increases to pay for more Washington spending.” For the record, a “flatter” tax system means either the poor paying more or the rich paying less, though Republicans never say which they prefer.
Marco Rubio was on the same page. “Raising taxes on people that are successful is not going to make people that are struggling more successful,” he said on Face the Nation. “The good news about free enterprise is that everyone can succeed without punishing anyone.” That was about as close as any Republican came to actually talking about the tax cuts Obama is proposing (though this National Review editorial does discuss them, by arguing that it’s an attack on motherhood). That’s probably because Republicans been in favor of ideas like them in the recent past.
While Obama does want to provide new funds to make community college free to anyone who wants it, most of his proposals in this round use the tax code to help people of modest means, which is exactly what Republicans usually suggest when they’re forced to come up with an idea to help the poor or middle class. Since they believe that government programs to help ordinary people are useless almost by definition, the only way to give anyone a hand is with a tax cut. And yes, the hand they usually extend is toward the wealthy, whose burdens are so crushing that justice demands that lawmakers not rest until they can be afforded relief. But tax cuts are so magical they can help anyone, which is why Republicans been in favor of expanding the Earned Income Tax Credit and the child care tax credit before.
But paying for it by increasing investment and inheritance taxes on the wealthy, like Obama is proposing? Not on your life.
One thing’s for sure: as the economy improves, both parties are now being forced to address the underlying issues of stagnant wages and inequality that have been an anchor around ordinary people’s lives for the last few decades. It’s fair to say this isn’t the debate Republicans want to have, and it’s easy to mock them for their insistence that they’re really the party with something to offer the middle class and the poor. But it’s a lot more productive to just take them at their word and see what they actually propose to do.
So Mitt Romney says he has cast off his previous contempt for those of modest means and now wants to focus his 2016 presidential campaign on the issue of poverty? All right — what are his ideas? If they’re actually worthwhile, he should get whatever credit he’s due. If it’s more trickle-down policies and stern lectures about bootstrap-pulling, then we’ll know nothing has changed.
You can argue — and many will — that it’s pointless for Obama to introduce significant policy proposals like this when he knows they couldn’t make it through the Republican Congress. But what alternative does he have? He could suggest only Republican ideas, but he wouldn’t be much of a Democratic president if he did that. Or he could offer nothing at all, and then everyone would criticize him for giving up on achieving anything in his last two years. If nothing else, putting these proposals forward can start a discussion that might bear legislative fruit later on. Major policy changes sometimes take years to accomplish, so it’s never too early to start. And if Republicans have better ideas, let’s hear them.
By: Paul Waldman, Senior Writer, The American Prospect; Contributor, The Plum Line, The Washington Post, January 19, 2015
“Falling Further Into A Hole”: Wage Stagnation Puts The Squeeze On Ordinary Workers
Laurie Chisum works as a manager for a small office-equipment company in Orange County. She puts in about 30 hours a week on the job and spends much of her time at home caring for her mother, who is afflicted with Alzheimer’s disease.
She’s not complaining — she’s thankful to have a steady paycheck. But no matter how hard she works, it feels as if she just can’t get ahead.
“It’s been six years since anyone at our company has had a raise,” said Chisum, 52. “It seems like I just keep falling further into a hole. The price of gas has gone down, but nothing else has.”
It’s a refrain we’ve heard throughout the year: wealth gap, income inequality, wage stagnation.
No matter how you say it, the upshot is the same. The rich are getting richer and everyone else is feeling squeezed.
The wealth gap in this country is now the widest it’s been in decades, according to a report this month from the Pew Research Center.
The median net worth of upper-income families reached $639,400 last year. That’s nearly seven times as much as for those in the middle and almost 70 times what people at the lower end of the economic spectrum are making.
That’s not just a data point. It’s sad proof of a system that grossly favors the rich over ordinary working families — even when the economy is improving.
“Far too many people simply aren’t feeling the benefits of this economic growth,” said U.S. Labor Secretary Thomas Perez. “People are working harder and smarter, but their sweat equity hasn’t translated into financial equity.”
David Neumark, director of the Center for Economics and Public Policy at the University of California, Irvine, said that “people at the top have had phenomenal wage growth,” whereas “people at the lower end of the spectrum have seen their real purchasing power decline.”
Corporate profits are at or near record levels. So’s the stock market. Chief executives are doing just fine, thank you very much. A recent report found that some of the biggest U.S. companies pay their CEOs more than they pay in federal income taxes.
For ordinary working stiffs, the numbers are more sobering. Average hourly wages rose an itsy-bitsy 0.4 percent in November, according to the Labor Department. And this was seen as good news because average wages increased a pitiful 0.1 percent in October and didn’t budge in September.
For the year, average hourly earnings through November rose 1.7 percent, according to the Bureau of Labor Statistics. Since the end of the recession in 2009, they’ve gained about 11 percent.
At the same time, though, the consumer price index — the cost of living — has increased 1.3 percent since the beginning of the year and about 11 percent since the end of the recession.
Wages, in other words, are barely keeping pace with overall inflation. That’s why many people feel as if they’re stuck in a financial rut.
“You wonder from month to month what else you’re going to have to cut back on,” said Chisum, a single mom who also is caring for a grown son with Down syndrome.
Things look even tougher when you tighten the focus on specific expenditures, such as food and rent.
Average food costs have climbed 12.5 percent since the end of the recession, according to the bureau. Average residential rents have risen 12 percent. The average cost of healthcare has jumped nearly 17 percent.
In that context, the 11 percent gain in wages since 2009 means that each of these necessities has taken a bigger bite out of family budgets and has left fewer dollars for other expenditures, such as the occasional restaurant meal or movie.
“There’s no evidence I can see that this is going to change in the near future,” said Edward Lawler, a professor at the University of Southern California’s Marshall School of Business. “These are tough times for workers.”
One key issue, he said, is that labor unions have less clout than they once enjoyed. This denies workers a unified voice at the bargaining table.
Improvements in technology have boosted productivity and allowed employers to limit hiring. And it’s become easy to ship jobs abroad, where people are willing to work for a fraction of the cost of American workers.
All these factors conspire to keep wages down while profits and the compensation of senior managers skyrocket.
Earlier this month, Microsoft shareholders approved an $84-million pay package for the company’s new chief executive, Satya Nadella, making him one of the country’s highest-paid corporate leaders. He’s run the company for less than a year.
Boeing, Ford, Chevron, Citigroup, Verizon Communications, JPMorgan Chase and General Motors each paid their CEOs more last year than they paid in income taxes to Uncle Sam, according to a report from the Center for Effective Government and the Institute for Policy Studies.
A recent study by Harvard Business School found that most Americans believe chief executives make roughly 30 times what the average U.S. worker makes. That was indeed the case in the 1960s. Nowadays, CEOs pull down more than 350 times the average worker.
Chief executives are important people, to be sure. But is their importance to a company 350 times that of their employees? I doubt most people — other than CEOs — would think so.
More effective unions would help, as would programs to give workers the skills they need to compete better in the 21st century workplace.
Chris Tilly, director of the University of California, Los Angeles’ Institute for Research on Labor and Employment, said a key step would be establishing a national minimum wage of $10 to $12 an hour, and then indexing that wage to consumer prices so that paychecks automatically rise with inflation.
“That way you wouldn’t have to wait for Congress to act every year,” he said. “This would be a basic decision that wages would keep up with the cost of living.”
Perez, the labor secretary, also called for a higher minimum wage, plus “strengthening overtime protections” and “ensuring that workers have a strong voice in the workplace.”
A rising tide lifts all boats. At least that’s how we’re told things are supposed to work.
The reality is that the tide is rising in a big way for some, and they’re comfortably sunning themselves on the decks of their yachts.
For most others, that rising tide is more like a stormy sea threatening to swamp the family lifeboat.
We’ll likely hear a lot in the coming year about how the economy is improving and businesses are thriving. Chief executives will point toward fast-rising stock prices as proof that they’re worth every million they’re paid.
And everyone else will try to make their 0.4 percent hourly pay hike go as far as they can.
By: David Lazarus, Columnist, The Los Angeles Times; The National Memo, December 29, 2014
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