“The American Jobs Act”: The Road Not Taken By A “Do Nothing Congress”
About a year ago, the job market looked a lot like it does now — after a strong winter, the economy stumbled badly in May and job growth stalled. Once the Republicans’ debt-ceiling crisis was resolved, President Obama shifted gears, refocused his agenda, and unveiled the American Jobs Act.
It seems like ages ago, but it was just last September when the president delivered an address to a joint session of Congress, laying out a detailed plan to boost job creation. It’s easy to forget, but it was a credible, serious plan — the AJA would have prevented thousands of layoffs for teachers, cops, and firefighters; invested heavily in infrastructure; and cut taxes intended to spur hiring.
Independent analysis concluded the plan would have a significant and positive effect. From an AP report in September:
A tentative thumbs-up. That was the assessment Thursday night from economists who offered mainly positive reviews of President Barack Obama’s $450 billion plan to stimulate job creation. […]
Mark Zandi, chief economist at Moody’s Analytics, estimated that the president’s plan would boost economic growth by 2 percentage points, add 2 million jobs and reduce unemployment by a full percentage point next year compared with existing law.
Macroeconomic Advisers wasn’t quite as optimistic, but its analysis projected that the White House plan “would give a significant boost to GDP and employment over the near-term.” The firm would expect to see the proposal create at least 1.3 million jobs.
Despite public clamoring for action on jobs, congressional Republicans reflexively killed the American Jobs Act, saying it was unnecessary. The House wouldn’t bring it up for a vote, and a Republican filibuster killed it in the Senate. For GOP policymakers, this was a time when Washington should stop investing in job creation and start focusing on austerity — lower the deficit, take capital out of the economy, and everything would work out fine.
As panic sets in after this morning’s brutal jobs report, take a moment to consider a hypothetical: what would the economy look like today if Congress had followed Obama’s lead, responded to public-opinion polls, and passed the American Jobs Act? In 2012, do you think the nation could use those 1.3 million jobs or not?
Are we better off now as a result of Republican obstructionism and intransigence, or would we have been better off if popular and effective job-creation measures had been approved?
By: Steve Benen, The Maddow Blog, June 1, 2012
“The Panicky Man”: Mitt Romney’s Ridiculous Unemployment Reaction
Unemployment, which is high but generally dropping, ticked up a tenth of a percent in May to 8.2 percent. This is not good news. There were 69,000 jobs created—a big improvement over the months when the country was hemorrhaging hundreds of thousands of jobs—but still not what economists had hoped for or expected.
Former Gov. Mitt Romney, the soon-to-be GOP presidential nominee, called it “devastating news.”
Devastating? Seriously? It’s a disappointment, to be sure. But “devastating” is a word used to describe rubble-making crises, things like Hurricane Katrina or the 9/11 attacks. It sounds over-the-top from anyone, but in Romney’s case, the hyperbole is worse, since it just ends up underscoring Romney’s fatal flaw.
Romney’s not a passionate guy. He has a very calculating manner about him—and that’s not necessarily a bad thing, since it means he’s capable of making tough decisions without being overly influenced by emotion. This is a man who withdrew from the 2008 Republican presidential candidate race in February of that year, and endorsed Sen. John McCain soon afterward. This is not the behavior of a man given to delusion or hysteria. This was the behavior of a man who took an objective look at his own situation and concluded he could not win the nomination. So he wasn’t going to continue on a quixotic and ultimately losing quest.
It’s that sort of businesslike calm—or coldness, if you will—that is both Romney’s greatest asset and liability. He fails to connect with voters in large part because he appears to be driven by cold statistics instead of compassion, or indeed any emotion. But he also can use that to his advantage, casting himself as the person able to make hard decisions during tough times.
Calling a one tenth of 1 percent uptick in the unemployment rate “devastating” makes Romney look ridiculous. It makes one wonder how he’d react in a far worse crisis. But mostly, it appears phony. Romney already has trouble convincing people he has a solid core of principles, since he has changed his position on gay rights and abortion. Pretending to be Panicky Man doesn’t help.
By: Susan Milligan, U. S. News and World Report, June 1, 2012
“Job Destroyers, Inc”: More Bad Company For Mitt
It’s apparently not enough for Mitt Romney that he’s holding a Vegas fundraising event tonight featuring Newt Gingrich and Donald Trump, just as the latter political werewolf is reviving his birtherist act.
Next up, in California, Romney’s doing a high-dollar event with everyone’s favorite failed political robot and job destroyer: yes, Meg Whitman! In case you (like me) have tried very hard not to think about eMeg since the last of her mind-numbing, soul-deadening 2010 gubernatorial campaign ads faded from the air, she’s been back in the news as the CEO of HP, doing what she does best: laying off employees. Here’s an assessment of her brief but destructive tenure at HP by SiliconBeat’s Chris O’Brien:
Listening to the Hewlett Packard earnings call was an exercise in the surreal today. CEO Meg Whitman started the call with a cheerful anecdote about some really neat-o gizmo she saw at HP. Just the sorta whiz bang stuff that’s gonna get HP back on its feet in no time!
She’s never been more optimistic about HP’s future! Gonna invest more in that innovation stuff!
Then she proceeded with all sorts of other happy talk about the business stabilizing and yada, yada, yada. And oh, by the way, to realign costs with the business we’re going to throw 27,000 people out the window.
[T]his has to be a crushing blow to an employee base already intensely demoralized by non-stop job cuts over the past decade. HP is not so much a company as it is a patchwork of acquired pieces of technology and companies, a kind of Frankstein monster of the high-tech industry.
Meg Whitman is to the technology industry what Mitt Romney is to private equity: an American Beauty Rose of “best management practices” that add up to a lot of misery and dysfunction. Romney could do a lot for the clarity of his economic message by just putting Meg on the ticket with him. Aside from all the many things they have in common, together they could pretty much self-fund the whole campaign if they wished. (Oh, yeah, sorry, forgot that Whitman can’t be on a national ticket because she is not, last time I checked, anti-choice!).
Newt, Trump, Whitman, on back-to-back days, just as Romney is officially nailing down the GOP presidential nomination. It has to be a nightmare for Romney’s staff. Don’t be surprised if they throw a few random punches to distract attention from the company their candidate is keeping.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, May 29, 2012
“Can’t Touch This”: It’s Time To Stop Letting Mitt Romney Off Easy
Mitt Romney wants the presidential election to be all about Barack Obama. If the press doesn’t start asking Romney some difficult questions about the core arguments upon which his entire presidential candidacy is based, he may very well get his way.
Case in point: Check out Mike Allen’s preview this morning of the Romney campaign’s next attack on the President’s economic record…
A senior aide tells us Mitt Romney plans to begin hitting specific stimulus projects as he travels, arguing that President Obama has actually subtracted jobs:
“Were these investments the best return on tax dollars, or given for ideological reasons, to donors, for political reasons? He spent $800 billion of everybody’s money. How’d it work out? It was the mother of all earmarks, not a jobs plan. By wasting all of this money, you had the worst of all worlds: It destroyed confidence in the economy, and makes people less likely to borrow money. Dodd-Frank has been a disaster for the economy. Where are the steady hands? Who’s in charge of energy? Where’s the strong, confident voice on the economy?”
So Romney will now go back to claiming Obama subtracted jobs. But there’s a new twist: Romney will claim that the effect of the stimulus has been to destroy jobs. As it has in the past, the Romney camp will justify this by pointing to a bogus metric — the net jobs lost on Obama’ watch. That includes the hundreds and hundreds of thousands of jobs lost before the stimulus went into effect. Really: The Romney camp’s claim is that we can calculate that the stimulus destroyed jobs overall with a metric that factors in all the jobs destroyed before the stimulus took effect. That’s not an exaggeration. It really is the Romney campaign’s position. It’s time to ask Romney himself to justify it.
The Romney camp will also begin claiming that Obama has “never created a job.” Will anyone ask Romney about the two dozen straight months of private sector job creation we’ve seen?
And if Romney is now going to start hitting individual stimulus projects, it’s also time to ask him what he would have done if he had been president in January of 2009. He has previously said positive things about stimulus spending. Are those no longer operative? Would Romney really not have proposed any government spending to stimulate the economy when it was in free fall? What would he have done instead? This question is absolutely central. How about asking it?
Then there’s the claim that “Dodd-Frank has been a disaster for the economy.” Romney has pledged to roll back financial reform completely, but he hasn’t said with any meaningful specificity what he woud replace it with, beyond claiming (after the J.P. Morgan debacle forced him to do so) that he supports “common sense regulations.” How about asking Romney what, if anything, he would do instead to guard against future Wall Street recklessness after rolling back Obama’s regulatory response to the worst financial disaster since the Great Depression?
Many of the claims that form the foundation of Romney’s entire case for the presidency are going without any meaningful national press scrutiny to speak of. Why?
By: Greg Sargent, The Washington Post Plum Line, May 29, 2012
“Delivering For The Well-To-Do”: Romney’s Bain Experience Wasn’t Real American Capitalism
The debate is on. The Obama forces and the Mitt Romney campaign are dueling back and forth with ads and heated rhetoric about Romney’s record at Bain Capital.
Actually, this debate began during the Republican primary season, when Romney was eviscerated by his probusiness foes vying for the nomination. Rick Perry called the Bain approach to business “indefensible,” “inherently wrong,” “vulture capitalism,” and Newt Gingrich called it “exploitation.” So, those who are worried that the critique of Romney’s role as a corporate raider is somehow a criticism of American capitalism or is somehow antibusiness should play back the Republican primary debate tapes.
Here are the fundamental questions about Romney and Bain: Did they help middle class, working families; did they create hundreds of thousands of jobs in America; was this American business at its best?
The answer, in my view, is clearly no. This is not George Romney running American Motors, this is not Steve Jobs creating Apple, this is not Ray Kroc developing McDonald’s. This is Wall Street run amok, with little regard for jobs lost, pensions lost, debt piled up, lives and communities left in tatters. The sole purpose of Bain Capital was to make money, and lots of it, for themselves and their investors. It was not to rebuild companies and rebuild lives. It had nothing to do with job creation.
If this is the Romney business “experience”—thanks, but no thanks.
The scary part of the Bain experience is that we have a candidate who favors $5 trillion in tax breaks, mostly for the wealthy, while unfairly targeting middle class families. The budget and tax policies advocated by Romney and House Budget Committee Chairman Paul Ryan of Wisconsin are inherently unfair to working families and continue the shift in income and benefits to those who have prospered this past decade.
In short, the Romney platform and the Romney experience at Bain point to a potential president who delivers for the well-to-do, not those who have been hurt by the economic collapse.
So, why does Romney favor, for himself and his wealthy friends, tax breaks to put money in Swiss bank accounts and the Cayman Islands? Why does he support carried interest deductions for the wealthiest Americans that allow him to only pay 14 percent in taxes? Why will he not admit that just because he can afford the lawyers and fancy accountants does not make it right?
Romney’s problem is that he is not supportive enough of real, fair, honest American capitalism—he is too tied to fast and loose Wall Street “exploitation” that got us all into this economic mess in the first place.
One can argue strongly that these money-making tactics have done far more harm than good to our economy and to American businesses over the past 20 years. That is why Bain and Wall Street excesses are so important to main street voters. That is why this debate about America’s future course is so important this election year.
By: Peter Fenn, U. S. News and World Report, May 26, 2012
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