“The Real Job Killers”: Forget What Republicans Say, The Real Job Killers Are Lousy Jobs At Lousy Wages
House Speaker John Boehner says raising the minimum wage is “bad policy” because it will cause job losses.
The U.S. Chamber of Commerce says a minimum wage increase would be a job killer. Republicans and the Chamber also say unions are job killers, workplace safety regulations are job killers, environmental regulations are job killers, and the Affordable Care Act is a job killer. The California Chamber of Commerce even publishes an annual list of “job killers,” including almost any measures that lift wages or protect workers and the environment.
Most of this is bunk.
When in 1996 I recommended the minimum wage be raised, Republicans and the Chamber screamed it would “kill jobs.” In fact, in the four years after it was raised, the U.S. economy created more jobs than were ever created in any four-year period.
For one thing, a higher minimum wage doesn’t necessarily increase business costs. It draws more job applicants into the labor market, giving employers more choice of whom to hire. As a result, employers often get more reliable workers who remain longer – thereby saving employers at least as much money as they spend on higher wages.
A higher wage can also help build employee morale, resulting in better performance. Gap, America’s largest clothing retailer, recently announced it would boost its hourly wage to $10. Wall Street approved. “You treat people well, they’ll treat your customers well,” said Dorothy Lakner, a Wall Street analyst. “Gap had a strong year last year compared to a lot of their peers. That sends a pretty strong message to employees that, ‘we had a good year, but you’re going to be rewarded too.’”
Even when raising the minimum wage — or bargaining for higher wages and better working conditions, or requiring businesses to provide safer workplaces or a cleaner environment — increases the cost of business, this doesn’t necessarily kill jobs.
Most companies today can easily absorb such costs without reducing payrolls. Corporate profits now account for the largest percentage of the economy on record. Large companies are sitting on more than $1.5 trillion in cash they don’t even know what to do with. Many are using their cash to buy back their own shares of stock – artificially increasing share value by reducing the number of shares traded on the market.
Walmart spent $7.6 billion last year buying back shares of its own stock — a move that papered over its falling profits. Had it used that money on wages instead, it could have given its workers a raise from around $9 an hour to almost $15. Arguably, that would have been a better use of the money over the long-term – not only improving worker loyalty and morale but also giving workers enough to buy more goods from Walmart (reminiscent of Henry Ford’s pay strategy a century ago).
There’s also a deeper issue here. Even assuming some of these measures might cause some job losses, does that mean we shouldn’t proceed with them?
Americans need jobs, but we also need minimally decent jobs. The nation could create millions of jobs tomorrow if we eliminated the minimum wage altogether and allowed employers to pay workers $1 an hour or less. But do we really want to do that?
Likewise, America could create lots of jobs if all health and safety regulations were repealed, but that would subject millions of workers to severe illness and injury.
Lots of jobs could be added if all environmental rules were eliminated, but that would result in the kind of air and water pollution that many people in poor nations have to contend with daily.
If the Affordable Care Act were repealed, hundreds of thousands of Americans would have to go back to working at jobs they don’t want but feel compelled to do in order to get health insurance.
We’d create jobs, but not progress. Progress requires creating more jobs that pay well, are safe, sustain the environment, and provide a modicum of security. If seeking to achieve a minimum level of decency ends up “killing” some jobs, then maybe those aren’t the kind of jobs we ought to try to preserve in the first place.
Finally, it’s important to remember the real source of job creation. Businesses hire more workers only when they have more customers. When they have fewer customers, they lay off workers. So the real job creators are consumers with enough money to buy.
Even Walmart may be starting to understand this. The company is “looking at” whether to support a minimum wage increase. David Tovar, a Walmart spokesman, noted that such a move would increase the company’s payroll costs but would also put more money in the pockets of some of Walmart’s customers.
In other words, forget what you’re hearing from the Republicans and the Chamber of Commerce. The real job killers in America are lousy jobs at lousy wages.
By: Robert Reich, The Robert Reich Blog, February 28, 2014
“Arguing In The Alternative”: The Nefarious Conservative Conspiracy To Save Obamacare
Like me, you were probably under the impression that bashing Obamacare was a party-wide Republican obsession and pretty much the GOP’s central talking point for 2014. That made sense not so much because it’s a big general election crowd pleaser, but because it’s proved to be the most effective Republican Establishment prophylactic device for keeping the Tea Folk from wreaking havoc in Congress. You know: “Get out of the way and let Obamacare collapse of its own weight.”
But no, Erick Erickson knows better. Behind all the rhetoric, he perceives a GOP conspiracy to undercut conservative opposition to Obamacare:
Conservative and Republican affiliated groups have started the 2014 assault against Democrats who support Obamacare. At the very same time, it is increasingly clear Republicans are laying the groundwork to abandon their opposition to Obamacare.
The Business Roundtable, which has a great relationship with Republican Leaders, is now listing Obamacare as an entitlement worth preserving.
Douglas Holtz-Eakin, a former economic advisor to John McCain and who opposed passage of Obamacare, has started a think tank premised on keeping, but fixing, Obamacare. Holtz-Eakin has the ear of Republican leaders. In 2009, Mitch McConnell appointed him to the Financial Crisis Inquiry Commission.
The Chamber of Commerce is declaring it will work to fix, not repeal, Obamacare. In fact, just last week the head of the U.S. Chamber of Commerce said, “The administration is obviously committed to keeping the law in place, so the chamber has been working pragmatically to fix those parts of Obamacare that can be fixed.”
Concurrent to this, the Chamber of Commerce has begun funding candidates to beat conservatives in Republican primaries.
I guess Erickson has never heard of the concept of “arguing in the alternative,” by which prudent opponents of a proposition or program develop a fall-back position of accepting it but arguing for a different way of interpreting or implementing it.
It is true that Holtz-Eakin along with Avik Roy penned a column nearly a year ago arguing that Obamacare might actually be an effective platform for achieving larger conservative health policy goals such as the privatization of insurance and service delivery under Medicaid and Medicare. It’s pretty much the mirror image of the belief of many single-payer advocates that the Affordable Care Act (particularly if it had included a strong public option) might pave the way to their own health care nirvana.
Still, the “Plan B” approach to Obamacare is an exotic plant being tended in exotic hothouses of conservative think-tankery. What Erickson’s doing is to insinuate that any business group that in any way resists the intra-Republican power of Obamacare-obsessed groups or individuals is secretly plotting to embed the ACA permanently into the American governing landscape.
The Republican Main Street Partnership, headed by former Congressman LaTourette — who is a friend of Speaker John Boehner — is working with the Chamber and party leaders to target conservatives the party leadership finds troublesome. LaTourette has been parroting talking points from the National Republican Senatorial Committee about the Senate Conservatives Fund, Club for Growth, and others.
Ben Sasse, the conservative candidate in Nebraska on the most recent cover of National Review and who has the backing of the Senate Conservatives Fund, RedState, and others, suddenly finds Mitch McConnell and the NRSC holding fundraisers for his opponent. Sasse, it should be noted, is widely considered a brainiac opponent of Obamacare and healthcare policy expert.
This “anybody in my way supports Obamacare” is reminiscent of the old southern segregationist tactic of accusing all political enemies on any subject of being secret race-mixers. (One corruption-tainted Georgia governor of the 1950s, Marvin Griffin, deployed what a political journalist called the “If You Ain’t For Stealing, You Ain’t For Segregation” argument). It’s the most lethal weapon Erickson can use. But it’s not terribly convincing at a time when Republicans of every hue from coast to coast are grinding away like cicadas at the anti-Obamacare message.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animan, January 16, 2014
“No Fools On Our Ticket”: A Battle Between The GOP Outsiders And Insiders
Just over the last few months, we’ve seen reports from the New York Times, Bloomberg News, and the Washington Post on the simmering tensions between Corporate America and Tea Party Republicans, driving a wedge into the GOP coalition. With party primaries looming, talk of a “Republican civil war” abounds.
Some of the party’s major players are even putting their money where their mouths are. This Wall Street Journal piece yesterday was circulated far and wide in Republican circles.
Republican leaders and their corporate allies have launched an array of efforts aimed at diminishing the clout of the party’s most conservative activists and promoting legislation instead of confrontation next year. […]
The U.S. Chamber of Commerce early next year plans to roll out an aggressive effort – expected to cost at least $50 million – to support establishment, business-friendly candidates in primaries and the general election, with an aim of trying to win a Republican Senate majority.
“Our No. 1 focus is to make sure, when it comes to the Senate, that we have no loser candidates,” said the business group’s top political strategist, Scott Reed. “That will be our mantra: No fools on our ticket.”
Though Reed did not specify who would qualify as a “fool,” it’s not hard to look back at major Senate races from the last couple of cycles and know exactly the kind of candidates he’s referencing (O’Donnell, Akin, Mourdock, Angle, et al). In other words, when Reed and the Republican Party’s Chamber of Commerce wing talk about “loser candidates” and “fools,” they’re obviously talking about right-wing Tea Party favorites.
Also note, there’s been ample analysis this year noting that Corporate America may want to overcome extremist candidates in GOP primaries, but if this wing of the party doesn’t commit real resources, Tea Partiers will prevail. It’s worth acknowledging, then, that $50 million in support of establishment candidates is a considerable sum.
But as word of the Chamber’s intentions spread, the backlash soon followed. “Special interests in Washington will do whatever it takes to protect big government Republicans,” Senate Conservatives Fund Executive Director Matt Hoskins told TPM yesterday. “Their ability to get future bailouts, kickbacks, and other favors depends on it.”
Club for Growth senior fellow Tom Borrelli added, “This is a battle between the outsiders and insiders and insiders include big bucks and establishment Republicans.”
Remember, primary season hasn’t really begun in earnest, which means these disputes are likely to intensify very soon. For many Democrats, hoping to see Republicans at each other’s throats during an election year, the popcorn is already being popped.
By: Steve Benen, The Maddow Blog, December 27, 2013
“The GOP’s Growing Divide”: The Provocateurs Can Be Counted On To Keep Far-Right Anger And Resentment At A Rolling Boil
The Republican Party, which should have the wind at its back, enters 2014 in disarray bordering on open warfare.
President Obama and the Democrats have had, let’s face it, a bumpy few months. The debut of the Affordable Care Act was not quite the hair-pulling, garment-rending, world-historical disaster that some critics claim, but it was — and remains — messy enough to buff the shine on the GOP’s badly tarnished brand.
A CNN poll released Thursday found that 49 percent of those surveyed said they would prefer to be represented by a Republican in Congress, while 44 percent favored a Democrat. That’s not much of a margin, but it’s a big change from two months ago when 50 percent preferred a Democrat and just 42 percent preferred a Republican.
Such generic polls are of limited use in predicting what will happen in November. But the numbers do suggest that the GOP is back in the game. Voters appear willing to listen to what the party has to say.
If only the GOP had a message.
There is one proposition on which the party’s warring factions agree: “We don’t like Obama’s Affordable Care Act.” But there is a lack of consensus, to put it mildly, on how this visceral dislike of a president and his signature policy initiative should translate into concrete political action.
For Republicans — to invert a classic George W. Bush bon mot — Obamacare has somehow become a divider, not a uniter. In a year when the GOP may have a legitimate chance of capturing the Senate, several primary contests appear likely to devolve into bloody battles over Obama’s health-care reforms — not whether to oppose them, but how.
In Georgia, for example, one of the leading candidates to replace retiring Sen. Saxby Chambliss is Rep. Jack Kingston. He has voted repeatedly — and fruitlessly — with his House Republican colleagues to defund the Affordable Care Act. But when he suggested recently that to “just step back and let this thing fall to pieces on its own” was not “the responsible thing to do,” opponents quickly attacked Kingston as some kind of quisling who was waving a flag of surrender.
In fact, Kingston was simply acknowledging reality. Obamacare is the law. Memories of the program’s incompetent launch will fade. Republicans are going to have to decide whether to collaborate in making the Affordable Care Act work better — or risk being seen as working against the nation’s best interests.
On a range of issues, this is the party’s essential dilemma. Ideologues want to continue the practice of massive, uncompromising resistance to anything Obama tries to accomplish. Pragmatists want the GOP to demonstrate that it can be reasonable and trustworthy, on the theory that voters want their government to function well and won’t put a bunch of anti-government extremists in charge of running it.
Keep in mind that despite the findings of that CNN poll, other surveys show the GOP still has a ton of work to do. A recent Wall Street Journal poll reported that 48 percent of respondents had “negative feelings” toward the Republican Party, as opposed to 39 percent who felt negatively toward the Democratic Party.
Rep. Paul Ryan (R-Wis.), took a giant step for pragmatism by negotiating a budget deal with Sen. Patty Murray (D-Wash.) — and the ideological wing of the party freaked out. House Speaker John Boehner, as rock-ribbed a Main Street conservative as you’ll ever meet, is routinely attacked on far-right Web sites as some kind of squishy moderate.
The question of how the GOP should proceed really should be a no-brainer. But after cynically taking advantage of the huge jolt of energy provided by tea party activists, the Republican establishment is finding that these true believers don’t necessarily listen when they’re told to go sit in a corner and shut up.
The no-compromises GOP base is fertile fundraising territory for potential presidential candidates, such as Sen. Ted Cruz of Texas, and for pressure groups such as Heritage Action and the Club for Growth. So these provocateurs can be counted on to keep far-right anger and resentment at a rolling boil — and resist the establishment’s attempt to lower the temperature.
The U.S. Chamber of Commerce is expected to spend up to $50 million to ensure that the Republican Party chooses no extremist “loser candidates” for Senate races. As Scott Reed, the chamber’s chief political strategist, told the Wall Street Journal: “That will be our mantra: No fools on our ticket.”
Wanna bet?
By: Eugene Robinson, Opinion Writer, The Washington Post, December 26, 2013
“The Radicals Are Actually Gaining Ground”: Sorry, There’s No Evidence Big Business Has Abandoned The Tea Party Or GOP
The current conventional wisdom floating around the media, seemingly extrapolated largely from quotes to the press from businessmen and their surrogates, is that “Big Business [is] trying to unseat the Tea Party.” However, there’s no evidence that this is happening.
Remember the first time Tea Party House Republicans held a gun to the US economy, refusing to pay America’s debts unless Democrats accepted a wide-ranging set of demands, and as a result, business leaders promised to spend big to defeat hostage-taking radicals?
“We’ll get rid of you,” said Tom Donohue, president of the US Chamber of Commerce to the Tea Party lawmakers.
That was 2011, during the first debt ceiling stand-off. And the following election year, none of the threats materialized.
In 2012, the Chamber ended up spending millions in undisclosed business funds to help elect Todd Akin, Ann Marie Buerkle, Dean Heller, Connie Mack, Denny Rehberg and other lawmakers who supported taking the debt ceiling hostage. Political action committees for the largest corporate interests in America, including General Motors, Goldman Sachs, Deloitte, the American Bankers Association and Honeywell, gave several million in direct donations to Tea Party hostage-takers, helping many survive the election last year and repeat their antics this year.
Now, it seems big business is bluffing again and advancing a false narrative that they are flexing their political muscle against the Tea Party. The storyline, boosted by ThinkProgress, Bloomberg, National Journal and the Associated Press, among others, is that corporate America has lost influence with the GOP and is helping to defeat lawmakers who threatened to push America into default.
So far, the spin makes the business community appear moderate, though there is nothing backing it up. Despite making statements and sending letters voicing their concern, the Chamber has failed to spend a single penny in advocacy against the Tea Party hostage-takers. It hasn’t rescinded any of its so-called “Free Enterprise Awards,” either. (The award has been given to many Tea Party lawmakers, including repeat hostage-takers like Representatives Steve Scalise (R-LA), Tom Graves (R-GA), and Morgan Griffith (R-VA), who encouraged a debt default by comparing it to a second American Revolution.)
Contrast this with how the Chamber behaved in 2009, when Democrats controlled the House of Representatives. By November of that year, twelve months before the midterms, the Chamber launched an onslaught of attack advertisements against House Democrats who did not vote their way, after months of issue ads in targeted districts.
Then, after helping the Tea Party seize the House and several governors’ mansions during the midterms, business groups pumped funds into an effort to gerrymander the Tea Party into permanent rule. CitiGroup and the US Chamber—both of which now complain about flirting dangerously close to default—provided huge donations to the RSLC, the political committee devoted to gerrymandering seats to the House GOP and Tea Party caucus’ advantage.
Will we see a reversal? Next year, there are a handful of high-profile primary races in which establishment Republicans are challenging incumbents, but none of them are proof that there is a concerted effort by business to drive out the Tea Party. Representative Justin Amash (R-MI) is being challenged on social issues and for his outspoken views on foreign policy, not on the debt ceiling. Representative Kerry Bentivolio (R-MI) has been a target for a primary well before his vote to shut down the government, largely because he is seen as a political novice who doesn’t know how to raise money. Representative Walter Jones (R-NC) is facing an establishment challenge, once again, but because he is an outsider within the party for his persistent votes to regulate Wall Street and crack down on political corruption.
Finally, Representative Scott DesJarlais (R-TN) may lose his seat because of revelations that he pressured a patient with whom he was having an affair to seek an abortion—not for his vote over the debt ceiling.
In fact, in terms of primary challenges, it looks like well-heeled GOP interest groups will successfully oust Boehner Republicans to make way for additional Tea Party–style politicians. Politico reports that Republican Representatives Mike Simpson (R-ID), Pete Sessions (R-TX), Lamar Smith (R-TX) and Bill Shuster (R-PA) face challenges from the right next year. Challengers in these races are calling for more debt ceiling hostage-taking. The Club for Growth, a pro-government shut down group funded largely by wealthy investors and businessmen, is leading the charge.
Here’s the reality: the large political action committee and trade associations that control much of corporate America’s campaign spending decisions will help the Tea Party and House GOP win re-election next year.
Big business political operatives lean Republican, and will stick with the party even if Republicans disrupt the economy for political reasons. Over the years, congressional Republicans waged a multifaceted effort to place partisans in their party in charge of the most influential lobby groups within the Beltway.
In the nineties, a mid-career John Boenher helped oust US Chamber president Richard Lesher—a moderate who sided with Democrats at times—to pave the way for Tom Donohue, a known GOP loyalist. During the George W. Bush era, Rick Santorum, Tom DeLay, Grover Norquist, Ed Gillespie and others created the “K Street Project” to install GOP operatives into key business lobbying positions.
Tom Perriello, a former one-term House Democrat from Virginia who was one of the first to be targeted by the US Chamber in attack ads aired a year before his re-election, says business leaders are too cozy with the GOP. Now the leader of the Center for American Progress Action Fund, he tells me that he’s “disappointed but not particularly surprised in the business community’s failure to force the Republicans to act reasonably on the CR, default or immigration, for that matter.… there seems to remain a broad cultural and political aversion [among lobbyists] to do anything that seems to help the Democrats and President Obama in particular.”
Still, Perriello thinks a change could be on the horizon. Many traditionally Republican business groups in Virginia have sat out the gubernatorial race, partially out of disgust for Ken Cuccinelli’s Tea Party extremism. Even GOP corporate lobbyists like John Feehery have been vocal in calling for the business community to do more to challenge the Tea Party.
But right now, it’s too early to say if 2014 will be any different than the last few congressional elections. The evidence suggests in fact that radicals are gaining ground within the GOP while facing little accountability. When it comes to taking on the Tea Party, business leaders have a lot of bark and no bite.
By: Lee Fang, The Nation, October 30, 2013
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