“The GOP’s Favorite Government Jobs”: Republicans Didn’t Realize Government Budget Cuts Result In Layoffs
Politico’s Austin Wright has a crazy little story about a spat between congressional Republicans and the Labor Department that hinges on the possibility of mass defense contractor layoffs.
The fight is over whether defense contractors are required to send out notices warning their workers of layoffs that would kick in as a result of the large defense spending cuts due Jan. 1 — aka”sequestration.”
Republicans say yes, citing the WARN Act, which requires large employers to give 60 days’ notice of possible layoffs. The GOP has been chortling in glee at the prospect of such notices going out to every single employee of the largest defense contractors, because the 60-day countdown just happens to arrive four days before Election Day. Because, you know, layoffs are bad, even if they mean Big Government is shrinking.
But the Labor Department says no! Labor’s main argument is based on the reasoning that sequestration is not inevitable — Democrats and Republicans still have time to come to a budget deal that would avoid sharp defense cuts. (Indeed the whole point of sequestration was that the prospect of such cuts was supposedly so drastic that it would force a compromise.)
According to Politico’s Wright, congressional Republicans consider the Labor Department’s decision a “political stunt.” That accusation has a high likelihood of being true, but it seems just a little bit hypocritical coming from Republicans who are hoping that layoff notices timed to be delivered just before Election Day will help their own electoral chances.
And that’s hardly the tip of the hypocrisy iceberg. Buried beneath the surface of this latest example of Washington dysfunction is a basic truth: Government budget cuts result in layoffs. That’s not good during a period of very slow economic growth. And yet, Republicans seem to have little problem when the newly unemployed are teachers or firefighters. But when defense’s ox is getting gored, then it becomes a big deal, and then the layoffs are presumed to be Obama’s fault and thus embarrassing to the White House.
By: Andrew Leonard, Salon, August 6, 2012
“A Not So Distant Nightmare”: Women Will Get Pushed Off The Fiscal Cliff
Remember that time when Congress almost defaulted on our debt? It may seem like a distant nightmare, but we’re still living with repercussions from the debt ceiling showdown. In order to get Congress to lift the ceiling a year ago, President Obama struck a deal that will cut $2.4 trillion in spending over ten years and formed a Congressional committee that was supposed to recommend ways to cut another $1.5 trillion from the deficit. If the committee failed to come up with the cuts, sequestration would kick into gear, with $1 trillion in cuts evenly split between defense and non-defense spending come January 2. The latter never came to fruition, so we’re now on a collision course with the former.
These automatic cuts, known as sequestration, have (unsurprisingly) become a political hot potato. They’ve even trickled into the campaign trail. But if the cuts move forward, the pain won’t just be political. They’ll hurt everyday Americans—but not across the board. Women are going to shoulder a disproportionate amount of the burden. While the defense lobby has been loudly pushing back on the $500 million to be slashed from its budgets, the $500 million cuts from domestic programs could be devastating, especially for women.
Education will take a big hit, which impacts women in more ways than one. Immediately of concern will be the fact that 100,000 children could get bumped from Head Start’s rolls, out of a total of 962,000. That’s because the automatic cuts will take a $590 million chunk out of federal spending on the program. That comes on top of a huge decline in state financing for the program over the past decade or so—it fell 45 percent, or $122 million. While there have been concerns raised about whether Head Start’s effects actually stay with enrollees, working mothers need more childcare options when they head to their jobs, not fewer. Less than 60 percent of 3-to-5-year-olds are enrolled in an organized childcare or early education program, and just about half of low-income children are. Those numbers can only go down after these cuts take effect.
Speaking of childcare, working mothers who rely on options other than Head Start will also suffer. Assistance for 80,000 kids will dry up after the cuts take effect. The recession has already hammered this spending at the state level. While federal funds had flowed in to support these programs through the stimulus, by the end of 2010 the money had dried up. That meant that thirty-seven states pulled back on assistance in one form or another last year, making families worse off than a decade ago, according to analysis by the National Women’s Law Center.
Women will also, of course, share some of the pain from cuts to other programs like AIDS drug assistance and substance abuse treatment programs. And while these cuts sound bad now, they could actually get worse down the road. While there’s now a “firewall” between defense and non-defense spending to make sure both are equally cut, that disappears after two years. NWLC has warned that this could mean a bigger share of the cuts fall on the non-security programs at that point.
The spending cuts will trickle down in other ways. It’s not just mothers who will find their struggles increasing. Women are the majority of the public sector workforce—and they’ve lost more than their share of those jobs as federal and state spending has been slashed during the recovery. These cuts will only push that trend along. Cuts to Head Start alone will eliminate 30,000 teacher, aide and administrative positions.
Other public sector workers could be hit. If (and when) federal spending is cut from state and local budgets, many may have to eye even more government layoffs. Just after the debt ceiling deal was announced, mayors and governors were already bracing for the cuts to impact their budgets. Budget restrictions at the federal level also mean many agencies will likely have to turn to furloughs, hiring freezes and layoffs.
The sequestration cuts may have morphed into an election-year football, but they have real consequences for Americans who are already struggling to get by. And women, who have really suffered from the sluggish recovery, are going to be hit fastest and hardest. While figures in the millions and billions are hurled like insults from side of the aisle to the other, it’s worth keeping in mind how drastic the real-life consequences will be and who will feel them.
By: Bryce Covert, The Nation, July 30, 2012
“Setting The Terms”: Foolproof Win-Win Strategy Plan For President Obama
Over the weekend I was mulling both of our crises, the political one (dysfunction, paralysis) and the policy one (looming tax-mageddon, sequestration). Yep, I mull these things on Saturdays. How, I wondered for the 486th time, can Obama get the Republicans to dig their heels out of the mud and get the upper hand politically while also doing some good for the country? Here’s how.
Obama should go to Congress and say: “I offer you the following deal. I will extend all the Bush tax cuts for one year—yes, even for the wealthiest Americans. One year. In exchange, I’d like you to agree to fund the initial, start-up $10 billion for the Kerry-Hutchison infrastructure bank, and the $35 billion I asked of you last September in direct aid for states and localities to rehire laid-off teachers and first responders. Then, after I am reelected, my administration and I will take the first six months of 2013 to write comprehensive tax reform, and Congress will then have six months to pass it, and we’ll have a new tax structure that we’ve both agreed on.
“The business community complains about uncertainty? This is certainty. The Bush rates will stay in place for one more year. We will give corporations our word that the basic corporate rate will be lowered in our package from the current 35 percent. The top marginal rate on the very highest earners will go up—I will continue to insist on that. But not for a year. The rates on middle- and low-income payers will stay the same or go down slightly. We will look at tax expenditures and loopholes and so on and close the ones that aren’t justified. But businesses will now have no reason to doubt what the tax rates will be next January and will have confidence that we’re going to work something out, if you agree to this very reasonable compromise.”
Obama gives some ground, the Republicans give some ground. Nobody gets everything, but everybody gets something. Isn’t that what compromise is? And the “certainty” point is key—it takes away an argument against private-sector investment and job creation that some in the business world have been making, at this moment of record corporate profits.
I’m well aware that liberals may hate this. I’ll get to that. But the politics of this idea seem awfully sound to me. Obama would have the Republicans over a barrel. He will have offered a huge concession on the high-end tax rates, which the media will note. If the Republicans say no, which of course is likely because the infrastructure bank is socialism and no one wants teachers anyway, then it becomes manifestly clear to swing voters that Republicans are the true obstructionists. Voters will get that Obama will have made a major concession here. They’ll see that the GOP fail to respond in kind, and most of them will draw the logical conclusion.
And if the Republicans say yes, then even better: They will have made Obama, at this eleventh hour of his first term, into the bipartisan leader they’ve so successfully prevented him from being. And more important than that, there are the real-world upshots of public investment in infrastructure—a proposal that has the support, by the way, of the left-wing United States Chamber of Commerce—and the rehiring of hundreds of thousands of laid-off workers.
The Republicans will be boxed in. They’ll think up a clever response. They always do. They’ll try to bring in defense spending, perhaps, or insist on two years. They’ll obviously set out immediately on trying to figure out a way to box Obama in and make the Bush rates permanent. They’ll think of nine other things I’m not cynical enough to conjure up. They’ll dismiss it as a gimmick, but I’d wager that Obama can sell the idea that his giving ground on high-income tax rates is serious, not gimmicky. And if Obama stands firm, the lines are simple and clear: “I’m giving up something, and I’m asking you to give up something, for the sake of helping put Americans to work, and of doing the jobs we’re paid to do.”
My idea doesn’t deal directly with budget sequestration, and the huge cuts that are supposed to kick in January 1. Maybe Obama can propose that those be deferred for a while as well. Or maybe he is better off just leaving that to the senators who are allegedly working on it now. It might muddy things up.
Now, liberals. There will be outrage that Obama caved on his one heretofore firm condition on taxes. Under other circumstances, I might be outraged. But these strike me as pretty decent circumstances. Remember, Obama agreed to extend the Bush rates once before, in December 2010, and a fair number of liberals and independent analysts were basically fine with that deal. That time, what did Obama get? His own tax cuts, to the payroll tax, and some unemployment insurance extensions. This time, if the GOP actually agreed, he’d be getting far, far more—Republicans agreeing for the first time in the Obama era to real stimulative spending. Liberals should cheer this outcome—just as they should cheer the idea that, unlike during the December 2010 deal or the debt fiasco of last year, Obama would be looking like the guy who set the terms. He’d look strong, not weak, and he’d be very nicely teed up for reelection.
Which is why the Republicans will say no. Though it’ll be worse for the country, it would be great for Obama politically. Mitt Romney, of course, would dismiss Obama’s offer too, so my ploy would bring the added benefit of making Romney look extreme and unreasonable to centrist voters. Obama could then campaign saying that he tried repeatedly to reason with Republicans and was rebuffed at every turn, even when he offered to lower tax rates for millionaires. Romney and the GOP will campaign saying, “We’ll give you the tax cuts without all this spending.” Obama will then have to make the case that spending—investment—has value. But he has to make that case anyway. In my scenario, he can make it in a context in which he can prove to voters that the other party won’t budge one single inch. He’ll finally look like, to resuscitate a phrase we haven’t heard much of in the last two years, the adult in the room.
By: Michael Tomasky, The Daily Beast, June 12, 2012
“Mouth Open, Brain Dead”: Mitt Romney Looks A ‘Gaffehorse’ In The Mouth
When Republicans propose cuts to essential public services, Democrats generally respond by accusing their GOP opponents of wanting to fire teachers, police officers, and fire fighters.
These public servants are cherished members of their communities. Anyone who would denigrate them must want a dumber, scarier, and more dangerous society. In other words, as the great Admiral Ackbar once said: “It’s a trap!”
Usually Republicans tend to skip over that particular trap, retreating into blather about debt for the grandkids or overbearing union bosses. What they never do is confess to wanting fewer firemen, policemen and teachers, at least not in public—until Mitt Romney came along.
It all began last Friday, when Romney advisers decided that President Obama had blunderingly delivered a gift to them during a White House press conference. “The private sector is doing fine,” the president had said. Of course he meant that the private sector is doing much better than the public sector – not going as far as many, including Business Insider’s Joe Weisenthal, who argue that the private sector actually is doing fine.
Still, Romney’s team practically ignited with glee. They pounced on May’s 69,000 jobs report, although that’s 58,000 more than Bush created on average. (And never mind that economists think Mitt’s plan won’t help and could make things worse.)
So Romney blurted an attack, shouting angrily: ”He says we need more firemen, more policemen, more teachers. Did he not get the message of Wisconsin? The American people did. It’s time for us to cut back on government and help the American people.”
Now we all know that Mitt wants fewer firemen, fewer policemen, fewer teacher. This will help the American people? And this was the lesson of Wisconsin? That’s like being born on third base and thinking the lesson is you hit a triple.
Here are the real lessons of Wisconsin:
- Don’t get outspent 10-to-1
- Start attacking early
- Don’t initiate a recall without a charismatic alternative
- Move to the center
Scott Walker wasn’t only helped by the Citizens United ruling. A loophole in Wisconsin law allowed the challenged governor to raise unlimited donations from individuals. Meanwhile, his Democratic opponent only had two months to raise funds and — despite winning most late-deciding voters — he got creamed. Nearly 20 per cent of Obama supporters voted for Walker simply because they disliked the idea of a recall. And Democrats won at least a symbolic victory by taking back the State Senate.
According to Mitt, however, Wisconsin means people don’t want more firefighters, cops, or teachers — an argument too ridiculous even for Walker to endorse. No, Mitt thinks they want more tax breaks for investment bankers and oil barons.
The Republican candidate answered a “gaffe” with a big, loud GAFFE. The President’s campaign should be very grateful.
By: The National Memo, June 11, 2012, @LOLGOP