The Truly Farcical “Jobs Through Growth Act”
I suppose Senate Republicans deserve at least some credit for making an effort. The congressional GOP has largely ignored the jobs crisis, so the fact that Sens. Lindsey Graham (R-S.C.), John McCain (R-Ariz.), and Rand Paul (R-Ky.) have put together the “Jobs Through Growth Act,” is at least marginally constructive.
The problem is with the “plan” itself.
What do Senate Republicans want to do to give employment a boost? Cut taxes, approve a balanced budget amendment to the U.S. Constitution, eliminate the entirety of the Affordable Care Act, eliminate the entirety of Wall Street reform safeguards, blocking EPA enforcement of clean air measures, and a tax repatriation holiday for international corporations.
When President Obama unveiled the American Jobs Act, it had been deliberately crafted to include several provisions that Republicans have traditionally supported. Graham, McCain, and Paul didn’t bother. Try not to be surprised.
The GOP senators boasted their plan would create 5 million jobs. And how would that happen? Who came up with that number? How would Republicans pay for their plan? How quickly would it make a difference?
They didn’t say. In fact, unlike the detailed jobs bill presented by the White House, the “plan” from Senate Republicans is a wish list of far-right ideas, but it’s also lacking in the sort of substantive details that serious proposals require.
And that’s precisely why this nonsense is so farcical.
The premise of Obama’s proposal was that the two parties couldn’t agree on their long-term vision of government, but the economic emergency was too severe to wait until the election to settle it, so they should act immediately on short-term ideas that have bipartisan support. The GOP response is to issue a series of exclusively long-term proposals lacking any bipartisan support. There’s not much pretense of intending to address the current crisis when your plan has as its cornerstone the passage of a Constitutional amendment. […]
On jobs, the GOP simply will not engage with the premise of the entire macroeconomic forecasting field that the economy is suffering from a lack of demand. The purpose of this bill is to straddle that awkward divide, and provide a sound bite to answer Obama when he says he has a jobs plan.
That’s plainly true. In fact, McCain, who admits he doesn’t understand economic policy, told reporters yesterday he and his cohorts put this plan together in part as “a response to the president saying we don’t have a proposal.”
Senator, I’ve seen your plan. You still don’t have a proposal.
The intellectual bankruptcy of the Republican Party is just astounding. It has no new ideas, no constructive solutions, no creativity, no depth of thought, no intellectual consistency, no recollection of their own failures, no understanding of economic policy, and no access to calculators.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, October 14, 2011
“We Are The Whiners”: About Those ‘53 Percent’
Republicans have been preoccupied for much of the year with those Americans who don’t make enough money to qualify for a federal income tax burden. Some are working-class families who fall below the tax threshold; some are unemployed; some are students; and some are retired. These Americans still pay sales taxes, state taxes, local taxes, Social Security taxes, Medicare/Medicaid taxes, and in many instances, property taxes, but not federal income taxes.
This, apparently, annoys the right to no end. It’s why all kinds of Republican officials — including Mitt Romney and Rick Perry — want to “fix” what they see as a “problem,” even if it means raising taxes on those who can least afford it.
This argument is even manifesting itself in a new “movement” of sorts, intended to respond to progressive activists calling for economic justice.
Conservative activists have created a Tumblr called “We are the 53 percent” that’s meant to be a counterpunch to the viral “We are the 99 percent” site that’s become a prominent symbol for the Occupy Wall Street movement. The Tumblr is supposed to represent the 53 percent of Americans who pay federal income taxes, and its assumption is that the Wall Street protesters are part of the 46 percent of the country who don’t. “We are the 53 percent” was originally the brainchild of Erick Erickson, founder of RedState.org, who worked together with Josh Trevino, communications director for the right-leaning Texas Public Policy Foundation, and conservative filmmaker Mike Wilson to develop the concept, according to Trevino.
The overriding message is that the protesters have failed to take personal responsibility, blaming their economic troubles on others.
There are all kinds of problems with the right’s approach here, including the fact that they seem to want to increase working-class taxes and also seem entirely unaware of the fact that it was Republican tax cuts that pushed so many out of income-tax eligibility in the first place. There’s also the small matter of some of those claiming to be in “the 53 percent” aren’t actually shouldering a federal income tax burden at all, but are apparently unaware of that fact.
But putting that aside, take a look at Erick Erickson’s argument, presented in a hand-written message posted to the Tumblr blog: “I work three jobs. I have a house I can’t sell. My family insurance costs are outrageous. But I don’t blame Wall Street. Suck it up you whiners. I am the 53% subsidizing you so you can hang out on Wall Street and complain.”
Just for heck of it, let’s take this one at a time.
The very idea that Erickson works “three jobs” is rather foolish.
Blaming financial industry corruption and mismanagement for Erickson’s troubles selling his house is actually quite reasonable.
If Erickson’s reference to “family insurance costs” is in reference to health care premiums, he’ll be glad to know the Affordable Care Act passed, and includes all kinds of breaks for small businesses like his.
And the notion that victims of a global economic collapse, who are seeking some relief from a system stacked in favor of the wealthy, are “whiners” is so blisteringly stupid, it amazes me someone would present the argument in public.
If there are any actual “whiners” in this scenario, shouldn’t the label go to millionaires who shudder at the idea of paying Clinton-era tax rates?
By: Steve Benen, Contributing Writer, Washington Monthly-Political Animal, October 11, 2011
The Occupy Protests: A Timely Call For Justice
Occupy Wall Street and its kindred protests around the country are inept, incoherent and hopelessly quixotic. God, I love ’em.
I love every little thing about these gloriously amateurish sit-ins. I love that they are spontaneous, leaderless and open-ended. I love that the protesters refuse to issue specific demands beyond a forceful call for economic justice. I also love that in Chicago — uniquely, thus far — demonstrators have ignored the rule about vagueness and are being ultra-specific about their goals. I love that there are no rules, just tendencies.
I love that when Occupy Wall Street was denied permission to use bullhorns, demonstrators came up with an alternative straight out of Monty Python, or maybe “The Flintstones”: Have everyone within earshot repeat a speaker’s words, verbatim and in unison, so the whole crowd can hear. It works — and sounds tremendously silly. Protest movements that grow into something important tend to have a sense of humor.
I can’t help but love that House Majority Leader Eric Cantor called the protests “growing mobs” and complained about fellow travelers who “have actually condoned the pitting of Americans against Americans.” This would be the same Eric Cantor who praised the Tea Party movement in its raucous, confrontational, foaming-at-the-mouth infancy as “an organic movement” that was “about the people.” The man’s hypocrisy belongs in the Smithsonian.
Most of all, I love that the Occupy protests arise at just the right moment and are aimed at just the right target. This could be the start of something big and important.
“Economic justice” may mean different things to different people, but it’s not an empty phrase. It captures the sense that somehow, when we weren’t looking, the concept of fairness was deleted from our economic system — and our political lexicon. Economic injustice became the norm.
Revolutionary advances in technology and globalization are the forces most responsible for the hollowing-out of the American economy. But our policymakers responded in ways that tended to accentuate, rather than ameliorate, the most damaging effects of these worldwide trends.
The result is clear: a nation where the rich have become the mega-rich while the middle class has steadily lost ground, where unemployment is stuck at levels once considered unbearable, and where our political system is too dysfunctional to take the kind of bold action that would make a real difference. Eventually, the economy will limp out of this slump, and things will seem better. Fundamentally, however, nothing will have changed.
Does that sound broad and unfocused? Yes, but it’s true.
The Occupy Wall Street protesters saw this broad, unfocused truth — and also understood that the place to begin this movement was at the epicenter of the financial system.
For most of our history, it was understood that the financial sector was supposed to perform a vital service for the economy: channeling capital to the companies where it could be most effectively used. But the rapid technological, economic and political change the world has witnessed in recent decades created myriad opportunities for Wall Street to channel capital to itself, often by inventing exotic new securities whose underpinnings may not exist. The 2008 financial crisis demonstrated the urgent need for reform.
It’s not that investment bankers should be held responsible for all the ills of the world. It’s that Wall Street is emblematic of an entire economic and political system that no longer seems to have the best interests of most Americans at heart.
So a ragtag group — not huge, but idealistic and determined — camps out in Lower Manhattan. A similar thing happens in two dozen other cities. And maybe a movement is born.
Already, after less than a month, commentators are asking whether the Occupy protests can be transformed into a coherent political force. For now, at least, I hope not.
We have no shortage of politicians in this country. What we need is more passion and energy in the service of justice. We need to be forced to answer questions that sound simplistic or naive — questions about ethics and values. Detailed policy positions can wait.
At some point, these protest encampments will disappear — and, since the nation and the world will not have changed, they’ll be judged a failure. But I’ve got a hunch that this likely judgment will be wrong. I think the seed of progressive activism in the Occupy protests may grow into something very big indeed.
By: Eugene Robinson, Opinion Writer, The Washington Post, October 10, 2011
Government Spending Is Just What Our Economy Needs
Our nation’s economy is approaching a precipice. The continuing housing market crisis has stripped about $10 trillion from families’ assets, and nearly 1 in 10 workers are unemployed. Nearly 1 in 10 others are either working less than they want or have given up their job search. Family income is now back where it was in 1996, in inflation-adjusted dollars.
This all means there is less money flowing through our economy. That’s just math.
The lingering consequences of the Great Recession—the housing crisis, the jobs crisis, the fear among businesses to invest their earnings despite record profits—continue to pull against faster economic growth and job creation. Because customers have less money to spend due to the collapse of the housing bubble and the ensuing high unemployment, businesses have little incentive to hire and invest.
Even Federal Reserve Chairman Ben Bernanke says there is a role for fiscal policy. Monetary authorities have already pushed interest rates down to zero. And they have few levers left to spur growth, although there are some steps that would continue to help on the margin.
In short, the economy continues to suffer from a lack of demand.
The federal government can help with this. We know that government spending can help restart an economy. Over the past two years, increased investments in infrastructure have saved or created 1.1 million jobs in the construction industry and 400,000 jobs in manufacturing by March 2011. Almost all of these jobs were in the private sector.
Money targeted toward the long-term unemployed helped not only those individual families hardest hit by the Great Recession but also kept dollars flowing into their local communities, keeping an average of 1.6 million American workers in jobs every quarter during the recession. But now, the threat of jobs again disappearing looms large.
Unless Congress acts, the private sector will continue to generate insufficient demand. A sweeping consensus of economists and forecasters across the political divide now calls for the government to forcefully intervene in precisely this way, to create demand for goods and services, which will in turn boost hiring and business growth. Goldman Sachs, for example, said the positive effect of the president’s American Jobs Act would increase U.S. gross domestic product by 1.5 percent in 2012.
Conservatives want us to believe that America’s broke, that we cannot afford to address our most pressing issue—mass unemployment and stagnating incomes. The reality is that there are clear steps that we can take to pave the way for economic growth. Congress just needs to act.
By: Heather Boushey, Economist-Center for American Progress, Published in U. S. News and World Report, September 27, 2011
Ten Reasons Why Immigration Reform Is Important To Our Fiscal Health
All eyes in Washington these days are on the new congressional super committee. The 12 members from both parties in both chambers of Congress have been assigned the task of developing a plan to reduce the federal deficit by $1.5 trillion over the next decade or risk setting off deficit-cutting triggers that will force sharp cuts to both defense and domestic spending.
There are many ways the members of this committee can reach the $1.5 trillion target between now and their Thanksgiving week deadline. We at the Center for American Progress understand that comprehensive immigration reform is not among the deficit reduction options on the table but want to urge the super committee to consider it. Comprehensive immigration reform is one key to boosting economic growth and thus helping to solve our nation’s fiscal problems.
Here are the top 10 reasons why immigration reform, or the lack thereof, affects our economy.
Additions to the U.S. economy
1. $1.5 trillion—The amount of money that would be added to America’s cumulative gross domestic product—the largest measure of economic growth—over 10 years with a comprehensive immigration reform plan that includes legalization for all undocumented immigrants currently living in the United States.
2. 3.4 percent—The potential GDP growth rate over the past two years if comprehensive immigration reform had gone into effect two years ago, in mid-2009. (see Figure 1)
3. 309,000—The number of jobs that would have been gained if comprehensive immigration reform had gone into effect two years ago, in mid-2009. A GDP growth rate of 0.2 percent above the actual growth rate translates into, based on the relationship between economic growth and unemployment, a decrease in unemployment by 0.1 percent, or 154,400 jobs, per year.
4. $4.5 billion to $5.4 billion—The amount of additional net tax revenue that would accrue to the federal government over three years if all undocumented immigrants currently living in the United States were legalized.
Revenue generated by immigrants
5. $4.2 trillion—The amount of revenue generated by Fortune 500 companies founded by immigrants and their children, representing 40 percent of all Fortune 500 companies.
6. $67 billion—The amount of money that immigrant business owners generated in the 2000 census, 12 percent of all business income. In addition, engineering and technology companies with at least one key immigrant founder generated $52 billion between 1995 and 2005 and created roughly 450,000 jobs.
Taxes generated by immigrants
7. $11.2 billion—The amount of tax revenue that states alone collected from undocumented immigrants in 2010.
Negative consequences of mass deportation
8. $2.6 trillion—The amount of money that would evaporate from cumulative U.S. GDP over 10 years if all undocumented immigrants in the country were deported.
9. 618,000—The number of jobs that would have been lost had a program of mass deportation gone into effect two years ago, in mid-2009. A mass deportation program would have caused GDP to decrease by 0.5 percent per year, which, based on the relationship between economic growth and unemployment, translates to an increase in unemployment by 0.2 percent, or 309,000 jobs, per year.
10. $285 billion—The amount of money it would cost to deport all undocumented immigrants in the United States over five years.
The upshot
Most Americans and their elected representatives in Congress would be pleasantly surprised to learn about the substantial benefits of comprehensive immigration reform to our nation’s broad-based economic growth and prosperity, and thus our ability to reduce our federal budget deficit over the next 10 years. Given how difficult a challenge the super committee faces, we cannot afford to ignore any viable options for strengthening our economy. We hope the super committee takes these top 10 economic reasons into account as they move forward with their deliberations.
By: Angela M. Kelley and Philip E. Wolgin, Center For American Progress, September 29, 2011
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