By: Eugene Robinson, Opinion Writer, The Washington Post, January 13, 2012
“Trying To Make The Economy Worse”: Last Friday The GOP Had A Really Bad Day
Last Friday the GOP had a really bad day. It didn’t come in the form of new polling results — or some new political scandal. It was delivered to them by the economic statistics:
Private sector jobs up 243,000 — almost 100,000 more than expected.
Unemployment rate down to 8.3 percent.
Twenty-three straight months of private sector jobs growth.
But you say, this is not bad news — this is good news. Not for the GOP and its chances of ousting President Obama, seizing control of the Senate or maintaining its majority in the House.
As Senate Republican leader Mitch McConnell made ever so clear early last year, the Republican Leadership — and their backers on Wall Street — have one and only one goal: to defeat President Obama next fall. To do that, the GOP is betting against the American economy.
For the last two years they have done everything in their power to slow America’s recovery from the greatest economic meltdown since the Great Depression.
They have opposed virtually every element of the president’s American Jobs Act.
They brought the economy to the brink by threatening that they wouldn’t allow America to pay its bills during the debt ceiling standoff last year.
They tried their best to prevent extension of the payroll tax holiday and unemployment benefits that are so critical to maintaining buying power momentum as the economy begins to pick up speed.
And, of course, they advocate returning to the regulatory and fiscal policies that caused the Great Recession in the first place.
But the most significant thing they have done to stall the economic recovery has been their refusal to continue federal aid to state and local government.
In the last 23 months, the economy has created 3.7 million new private sector jobs. But during the same period, it has created only 3.165 net total jobs. That is because government — mainly state and local government — laid off a net of about 535,000 people.
If the Republicans in Congress had not refused to continue providing aid to state and local governments, it is likely that unemployment would be in the mid 7 percent range and the economy as a whole would have at least another half million jobs.
And we would also be more likely to have more private sector jobs as well, since the additional teachers and firefighters and policemen who the Republicans basically fired, would have had money to spend on the products and services produced by private businesses.
As much as they like to pretend they don’t agree with “Keynesian” economics, many Republicans completely understand that by refusing to provide aid to state and local government, they are hurting the economic recovery — and that is exactly what they are trying to do.
They have been perfectly willing to allow our kids to have fewer teachers and bigger class sizes, and to allow our cities to have fewer policemen and firefighters all to advance their political goal of slowing the economic recovery.
But despite their efforts to the contrary, the economy is beginning to gain traction. That is very important to the prospects of everyday Americans — and it is critically important politically.
Anyone who has ever tried to move a car that is stuck in the snow — or in the mud — knows what I mean. As long as the car just keeps spinning its wheels, there seems to be no hope. But after you’ve shaken and pushed, and put sand under the tires and the car finally begins to get the smallest amount of traction — everyone’s spirits change. Suddenly there is hope that you’re finally going to get the car moving again.
That’s what’s beginning to happen to the economy — and it will have an enormous effect on the attitudes of voters. It begins to give them hope that the president’s policies are, in fact, moving the economy in the right direction — that it actually is beginning to build up steam — that there is hope that middle class Americans are actually going to see their prospects begin to improve.
And it gives lie to the ridiculous statements of Mitt Romney, who continued to claim as late as last Friday that Barack Obama has made the economy “worse.”
The definition of “worse” is “not as good as it was before.” The economic disaster that was caused by the policies of the Bush administration — the same policies that Romney wants to bring back to the White House — caused the destruction of 8 million jobs. In fact, George Bush was the first president in modern American history to preside over net zero private sector job growth.
As soon as President Obama took office he put into place policies that reversed those jobs losses. Monthly private sector job losses declined continuously and finally turned positive — and the economy has added private sector jobs continuously for the last 23 months. In the last two months alone, the economy has added 446,000 new jobs. That is not worse. In fact, that is commonly known as better. And that is a huge problem for the GOP political narrative this fall.
In the next several weeks, Congress will rejoin the battle over the extension of the payroll tax holiday and unemployment benefits for those who are out of work for no fault of their own. Recall that this was the fight that involved the complete surrender of GOP opposition in the week leading to the Christmas holidays. Then, they agreed to a two month extension that guaranteed that the battle would be renewed — a fight that will once more highlight just how, when it comes to jobs, President Obama and the Democrats are doing battle with a “do nothing Republican Congress.”
There will likely be ups and downs in the jobs numbers over the next eight months. But as long as the economy continues to gain traction — and as long as Democrats continue to battle for jobs legislation in Congress — there will be many more bad days ahead for the GOP’s strategy of making themselves look better by trying to make the economy worse.
By: Robert Creamer, The Huffington Post, February 5, 2012
Mitt Romney’s New Problem: A Rising Sun
Mitt Romney was on the campaign trail in South Carolina yesterday, and brought up the issue he expects to ride into the White House: the U.S. economy. Unfortunately for the former governor, the message isn’t quite the same as it was a few months ago.
In his remarks [Friday], Romney also acknowledged the economy was getting better — something he has said before….
“And [President Obama]’s going to say the economy is getting better,” Romney said. “Thank heavens it’s getting better. It’s getting better not because of him, it’s in spite of him and what he’s done.”
For those keeping track, Romney said twice in three sentences that he believes the economy is “getting better.”
I’ve noticed over the last week, this keeps coming up. Shortly before the New Hampshire primary, Romney said he’s “glad” the economy is improving, but quickly added that President Obama “doesn’t deserve” credit. In an interview with Bloomberg Television, Romney also said the economy is recovering, but said “this president has not helped it.”
And in a debate for the Republican presidential candidates last weekend, Romney made his case this way:
“The president is going to try to take responsibility for things getting better. It’s like the rooster trying to take responsibility for the sun rising. He didn’t do it.”
I believe campaign professionals call this a “losing argument.”
Look, I don’t know whether the recovery will strengthen in 2012. The recent evidence has been mixed; experts’ projections vary widely; and the global threats to the economy remain real and hard to predict. There is, however, room for some optimism and Romney himself believes, in his words, economic conditions are “getting better.”
But as a campaign matter, if Romney is right about a strengthening recovery, he has to realize he’s going to lose. For the entirety of 2011, the former governor had a single message he repeated ad nauseum: Obama made a bad economy worse. It wasn’t true, but so long as the recovery was largely invisible, it was a message that could fool a lot of the people a lot of the time.
Two weeks into 2012, Romney has a new message: don’t give Obama credit for making the economy better. In effect, the Republican is arguing, “Sure, Obama inherited a deep recession. And sure, he took a bunch of steps to turn the economy around. And sure, we’re now seeing more jobs being created and more economic growth. But vote against him anyway.”
This isn’t just a tough sell; it’s an impossible one.
Look again at what Romney said in last weekend’s debate: “The president is going to try to take responsibility for things getting better. It’s like the rooster trying to take responsibility for the sun rising.”
By Romney’s own reasoning, the sun is rising and it’s morning in America. As Jon Chait put it, “This seems like a shockingly weak line — if you concede that it’s morning, you’ve lost the argument.”
By: Steve Benen, Contributing Writer, Washington Monthly, Political Animal, January 14, 012
“Embracing The Possibilities”: Martin Luther King And The Dream That Came True
He would be an elder statesman now, a lion in winter, an American hero perhaps impatient with the fuss being made over his birthday. At 83, he’d likely still have his wits and his voice. Surely, if he were able, he would continue to preach, to pray — and to dream.
For the Rev. Martin Luther King Jr., dreaming was not optional. It was a requirement of citizenship to envision a fairer, more prosperous nation no longer shackled by racism and poverty. It was a duty to imagine a world no longer ravaged by senseless wars. His most famous speech was less an invitation to share his epic dream than a commandment.
In these sour, pessimistic times, it is important to remember the great lesson of King’s remarkable life: Impossible dreams can come true.
This is not a partisan message; King was every bit as tough on Democrats as Republicans. His activism even transcended ideology. His call for social justice and his opposition to the Vietnam War were rightly seen as liberal, but his insistence on the primacy of faith and family was deeply conservative. His birthday is a national holiday because his words and deeds ennoble us all.
Thinking about King’s legacy reminds me that this is hardly the first time our society has been bitterly divided and fearful of an uncertain future. When he led the 1963 March on Washington and gave his indelible “I Have a Dream” speech, many Southern whites, including officials, were still determined to resist racial integration by any means necessary. Many black Americans were fed up, no longer willing to wait patiently for the rights promised them under the Constitution.
We were inured to television images that today would be shocking. Police dogs turned loose on peaceful protesters. Columns of smoke rising from cities across the land following King’s assassination.
As he predicted, King did not live to reach the mountaintop. But his leadership — and that of so many others in the civil rights movement — set us on a path that changed the nation in ways that once seemed unimaginable. Racism, sexism and all the other poisonous -isms have not been eradicated, but they have been dramatically reduced and marginalized. It is difficult for young people to believe that overt discrimination — “You can’t have that job because you’re black” or “I’m going to pay you less because you’re a woman” — used to be seen as normal.
Today, the nation is suffering what I see as a crisis of confidence. Economic globalization and advances in productivity have hollowed out the U.S. manufacturing sector, eliminating millions of blue-collar jobs. For the first time, parents have to worry whether their children’s standard of living will decline rather than improve. Demographic change is about to make this a nation without a white majority; by the middle of the century, we’ll be an increasingly diverse collection of racial and ethnic minorities — held together, even more than in the past, by the ideals of the nation’s founding documents.
We’re struggling to climb out of the worst recession in decades. We’re deeply in debt. Most of us agree on the need for a social safety net but not on how to structure it or how to pay for it. Our political system is sclerotic if not dysfunctional. The past few elections have not produced a consensus on the way forward. The next won’t, either.
I consider myself fortunate that, when I’m feeling pessimistic about all of this, I’m able to visit the new King memorial that was dedicated in October. The towering statue of King looks out toward the Jefferson Memorial, which honors the man whose stirring words now apply to all Americans, not just a few. Behind King is the Lincoln Memorial, a tribute to a leader who shepherded the nation through days much darker than these.
The plaza surrounding King’s statue opens up to the Tidal Basin as if to demonstrate how our nation, at its best, embraces possibility.
The first time I visited the memorial, I ran into former senator George Allen from Virginia. He and I disagree on almost everything — and since he’s running for office again, I’m sure we’ll be on opposite sides of many issues. But on a crystalline morning, we were able to stand together, awed by King’s moral vision and humbled by his challenge: We can be better. We must. We will.
Why Do Republicans Hate Poor, Hungry People?
It’s almost as if Republicans are actively striving to get a reputation for being mean to poor, hungry people. On Tuesday, the Philadelphia Inquirer reported that the administration of Gov. Tom Corbett plans to start restricting eligibility to the Supplemental Nutrition Assistance Program (formerly known as the food stamp program). Specifically, the state is imposing an “asset test” — anyone under 60 years old with savings of more than $2,000 is no longer eligible for assistance.
The news isn’t quite as bad as some outlets are spinning it. Pennsylvania’s proposed asset test conforms to federal guidelines for SNAP and doesn’t include the value of a recipient’s home, retirement savings or car. But what’s troubling is that the nationwide trend has been headed in exactly the opposite direction. Only 11 states currently impose asset tests for SNAP eligibility. Just four years ago, in fact, Pennsylvania’s Democratic governor, Ed Rendell, abolished the state’s asset test.
And with good reason, as we can readily learn from two new freshly updated informational fact sheets on SNAP coincidentally published on Tuesday by the Center on Budget Policy and Priorities.
SNAP serves as the bedrock of the federal safety net. Ninety-two percent of SNAP’s $78 billion budget goes to benefits that can only be used to buy food. Seventy-five percent of SNAP participants are families with children. There are already plenty of restrictions in place that ensure that SNAP benefits primarily go to people who are legitimately poor. According to CBPP, “93 percent of SNAP benefits go to households with incomes below the poverty line, and 55 percent goes to households with incomes below half of the poverty line (about $9,155 for a family of three).”
SNAP gets high marks for low levels of waste and fraud, kicks into action quickly and efficiently when the economy craters, and is rated by the Congressional Budget Office as one of the two most effective forms of federal stimulus. Perhaps best of all, the number of recipients usually declines just as quickly when the economy rebounds. According to a recent study by the USDA, in the mid-2000s, “More than half of all new entrants to SNAP in the mid-2000s participated for less than one year and then left the program when their immediate need had passed.”
As the U.S. economy continues to recover, SNAP outlays will surely decline. So why hurry it along? Could it be because conservatives think there’s something fundamentally wrong with providing nutritional support? Or is it the racial angle — the intersection of poverty and race that encourages people like Newt Gingrich to call Obama “the food stamp president.”
The most charitable way to interpret Gingrich’s slur is as a critique of the president’s management of the economy: If he’d been a better president, fewer people would be eligible for assistance. But there’s also a deeper, darker level that connects the classic conservative antipathy to anything vaguely smelling of the nanny state. And the more one ponders that, the harder it is to fathom. The richest Americans skated through the Great Recession, while poor people lost their jobs and their homes and struggled to put food on the table. SNAP was there to help, to prevent the kind of pain and suffering that plagued American during the Great Depression, or that still afflicts citizens of less fortunate countries today. We should be thankful that Obama is the food stamp president; it’s a tribute to the progress inherent in becoming a civilized nation. We don’t let our citizens starve when Wall Street causes an international catastrophe. We should be proud of that.
By: Andrew Leonard, Salon, January 11, 2012
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
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