“What We Left Behind In 2013”: Americans Shouldn’t Accept The Low Standards Of Congress’s New Normal
I think we all breathed a sigh of relief this week when Congress finally did what it was supposed to do and passed a basic budget. Although the budget left many behind, this time there were no shutdowns, no debt ceiling scares, no fears of economic catastrophe. They just got down to work and passed a budget that allows our government to run.
I felt similarly relieved when the Senate changed its rules to put an end to the GOP obstruction that had kept seats on our courts across the country vacant out of misplaced political spite and pure obstructionism. Although Republicans are still doing everything they can to hold up the process, some long-blocked nominees are finally getting confirmed.
Yes, things are getting better. But that’s not saying much. Republicans have lowered the standards of Congress so much that the completion of a basic task like passing a budget or confirming a non-controversial judge is now cause for celebration. Americans shouldn’t accept the low standards of this new normal.
It’s like the relief of having a tooth pulled. The ache that’s been with you for so long is gone, the sharp pain of having it pulled is over. But there’s something missing.
As we look forward to the year ahead, let’s remember the tasks we left behind in the rancorous, bitter 2013. Relief is not enough. Progressives must redouble our efforts not only to make up lost ground but to make positive progress in the coming year.
Relief For Low-Income Americans. It was good news that Congress passed a budget. But that budget left some important programs behind. Last month, 47 million low-income Americans saw their SNAP (food stamp) benefits cut, leaving them with even less money to buy food for their families. Three days after Christmas, 1.3 million Americans will see their emergency unemployment insurance dry up, leaving many of the long-term unemployed with little to keep themselves afloat, and hurting the economy as a whole. Next year, Congress must work to boost our economy in a way that doesn’t leave behind those who are out of work or underemployed.
Employment Non-Discrimination Act. Gay-rights supporters rejoiced last month when the Senate passed a bill banning employment discrimination based on sexual orientation or gender identity, a measure that garnered unexpected support from a number of Republicans. But Speaker Boehner shows no desire to bring the bill to the House floor. Progressives need to make sure House Republicans pay a political price if they kill a nondiscrimination bill supported by 70 percent of Americans.
Ending the Judicial Vacancy Crisis. A minority of Senate Republicans can no longer block all of the president’s judicial nominees from getting confirmation votes, but there’s plenty of lost ground to make up. One in ten seats on the federal courts is now or will soon be vacant, and there’s a growing number of urgent “judicial emergencies.” And now Republicans are stepping up their obstruction in other ways, even indicating that they will send 55 nominees back to the president at the end of the year, forcing the White House and the Senate to start the nominations process all over again. The 41-vote filibuster may be dead, but the fight to put good judges on the courts is just as important.
Updating our Immigration Laws. There was a rare bit of bipartisan hope this year when the Senate’s bipartisan “Gang of 8” hammered out an agreement for a much-needed update to our immigration laws, including a roadmap to citizenship for undocumented immigrants. The bill provoked a Tea Party uproar and got stuck in the House, but with enough pressure from the public, next year presents an opportunity to create a chance for thousands of immigrant families.
Protecting Voting Rights. As soon as the Supreme Court struck down the key enforcement provision of the Voting Rights Act, states across the South started instituting restrictive new voting laws designed to keep people of color, low-income people, and the young from voting. This was an undeniable setback, but we now have an opportunity to update VRA’s protections…if reasonable members of Congress will work together to get it done.
Defending Choice in the States. Congress may have been at a standstill last year, but many state legislatures weren’t. On top of a barrage of voting restrictions, Republican state legislatures continued the recent flood of anti-choice laws making it harder for women to access birth control and abortions. In just the first half of the year, states adopted 43 restrictions on abortion. But there were also positive trends as state legislators across the country worked toward positive, pro-woman policies. The War on Women is far from over, but we have the chance to achieve positive women’s rights victories in the states.
Fighting the Influx of Big Money in Politics. The 2010 Citizens United decision was bad enough, opening the door to unlimited corporate spending in elections. But this year saw the Supreme Court considering another major campaign finance case, McCutcheon v. FEC, that could allow the wealthiest donors to flood our political system with even more money. Luckily, 2013 also made clear that “We the People” have had enough. The movement to reclaim our democracy from special interests has never been stronger. To date, 16 states and more than 500 cities and towns have passed resolutions or ballot initiatives calling on Congress to pass an amendment overturning Citizens United and putting the power of our democracy back in the hands of everyday Americans. And 145 members of the House and Senate are now on record as co-sponsors of an amendment.
Barely functioning is not enough. We have a lot of work to do. Here’s to higher standards in 2014!
By: Michael B. Keegan, President, People For the American Way, The Huffington Post Blog, December 20, 2013
“Five Times George W. Bush Extended Unemployment Insurance Benefits”: It’s Just Bad Policy To Refuse To Renew The Extension
In his December 14, 2002 weekly radio address, President George W. Bush reminded Congress that “no final bill was sent to me extending unemployment benefits for about 750,000 Americans whose benefits will expire on December 28th.”
He went on, “These Americans rely on their unemployment benefits to pay for the mortgage or rent, food, and other critical bills. They need our assistance in these difficult times, and we cannot let them down.”
What was the unemployment rate in December 2002?
It had just risen to 6.0 percent.
The unemployment rate today is 7.0 percent and at the end of this year 1.3 million Americans — including 20,000 veterans — who have been out of work for more than six months will have their unemployment insurance benefits cut off. Republicans in Congress have refused to extend these benefits, though the Congressional Budget Office predicts failing to do so will cost the economy 200,000 jobs.
The Republican Congress heeded George W. Bush’s call to extend unemployment insurance as they had the March before. They passed a bill and he signed it.
In 2003, the American economy was still dealing with the residue of the dot-com bust and economic shock of the 9/11 attacks — but it was still considerably stronger than the America that lived through the Great Recession and continues to see its growth hindered by government austerity.
The extended unemployment benefits Congress is about to let expire actually began under George W. Bush, long after his 2003 extension expired as unemployment dipped below 5 percent again. In 2008, as the financial crisis began to rock the economy, President Bush signed an extension of 13 weeks, 39 weeks total in most states, for anyone living in a state with unemployment over 6.0 percent. He also signed unemployment extensions that specifically helped the victims of 9/11 and Hurricane Katrina.
All five times Bush extended unemployment benefits, he did so with the majority of Republicans in Congress supporting him.
At the peak of the crisis, when unemployment was around 10 percent, Congress and President Obama extended benefits to 99 weeks. The current maximum is 73 weeks.
A requirement of receiving benefits is seeking a new job, but with an estimated three people out of work for every one job opening, cutting off benefits likely won’t encourage jobseekers — as Senator Rand Paul (R-KY) imagines — but instead doom them to permanent unemployment. And the Center for Budget and Policy Priorities (CBPP) estimates that the 1.3 million who will be cut off in 2014 will soon swell to 5 million.
There are two huge reasons why now is not the time to cut off the long-term unemployed, explains the CBPP’s Brad Stone.
While the unemployment rate has declined, the overall employment rate has not grown as it usually would during a recovery.
Secondly, cutting off benefits now for those who need them most is unprecedented.
“At 2.6 percent, the long-term unemployment rate is at least twice as high as when any of the emergency federal UI programs that policymakers enacted in each of the previous seven major recessions expired,” Stone wrote.
Even conservatives recognize that it’s just bad policy to refuse to renew the extension.
Democrats in Congress have vowed to tie the extension to the passage of the farm bill in order to force Republicans to approve it retroactively. They’re expected to be supported by an organized grassroots effort from the left to force vulnerable congressmembers to encourage the GOP leadership to take up the bill.
But it’s safe to assume that if it were President Bush asking for the extension rather than President Obama, the GOP would be happy to just say yes.
By: Jason Sattler, The National Memo, December 20, 2013
“Ideology Over Sound Policy”: Republican Governors No Longer A Force For Moderation
Republican governors, who actually have to govern, used to be a moderating force on the most extreme aspects of Republican ideology. No longer. In major areas such as health care, taxes, and jobless benefits, ideology is trumping sound policy judgment in many gubernatorial mansions and state legislatures.
Healthcare
Antipathy toward “Obamacare,” not reasoned analysis, seems to be why many governors have expressed hesitation, if not outright opposition, to the Medicaid expansions under the Affordable Care Act, even though the federal government would pick up almost all of the costs. A similar antipathy (and probably a hope before the Supreme Court decision and 2012 election that the law would go away) led many governors to pass on the chance to use the flexibility that the it afforded them to design their own health insurance exchanges—new competitive marketplaces in which individuals and small businesses can choose among an array of affordable, comprehensive health insurance plans that the Affordable Care Act requires.
I’ve previously explained why Medicaid expansion is a good deal for the states. But as the map below from the Center on Budget and Policy Priorities’ report on the healthcare law’s Medicaid expansions shows, many states remain undecided or are leaning against expansion:
The Center’s report on the state health insurance exchange implementation shows that 26 states, including most of the states leaning against Medicaid expansion, have declined to either operate a state-based exchange or partner with the Department of Health and Human Services in designing their exchange. Under the law, that means they default to a “Federally facilitated exchange” that HHS will establish.
Taxes
In another disturbing development, numerous states are considering—or have already enacted—sweeping tax and budget proposals that follow recommendations of the American Legislative Exchange Council, also known as ALEC. As this CBPP report explains, ALEC’s recommendations for deep tax cuts and limits on revenues and spending reflect extreme “supply side” and antitax arguments that mainstream economic research discredited long ago.
CBPP’s most recent assessment finds that at least five states (Kansas, Louisiana, Nebraska, and both North and South Carolina) are considering eliminating income taxes. At least 11 others (Idaho, Indiana, Missouri, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, and Wisconsin) are considering deep tax cuts. And at least three states (Arizona, Arkansas, and Kansas) are considering harsh revenue limits.
Unemployment Insurance
Unemployment Insurance is a joint federal-state program in which states have traditionally offered up to 26 weeks of benefits to qualified workers who lose their jobs through no fault of their own, and the federal government typically provides additional weeks of emergency unemployment compensation when national unemployment is high. In the current jobs slump, by far the worst since the 1930s, seven states have cut back on the maximum number of weeks of regular benefits they offer. Because the maximum number of weeks of federal emergency benefits is proportional to the maximum number of weeks of state benefits, that means jobless workers in those states have seen a significant reduction in support while they look for work in what remains a tough labor market.
Research shows that Unemployment Insurance is valuable not only to unemployed workers and their families but also for the additional spending that it injects into the economy. States that have cut back on it are hurting struggling families and their own economic recovery.
The North Carolina Trifecta
North Carolina is the poster child for these disturbing trends in state governments.
The Tar Heel State is one of the five considering eliminating its income tax. The new Republican governor supports legislation that would prevent the state from expanding Medicaid or establishing a health insurance exchange. And, in July, the state will become the eighth to have reduced the maximum number of weeks of Unemployment Insurance it offers. Moreover, North Carolina also cut the maximum level of benefits which, under the “maintenance of effort” requirement for receiving emergency federal benefits, requires the federal government to cut off all emergency Unemployment Insurance to North Carolina.
Republican governors used to fight for Medicaid and Unemployment Insurance because they recognized how much their states benefited. Now, many are leading the effort to cut valuable programs in order to finance tax cuts for high-income households and businesses, while letting the chips fall where they may for those of more modest means.
By: Chad Stone, U. S. News and World Report, February 22, 2013
“Hurting The Most Vulnerable”: Cutbacks To Unemployment Insurance Came Long Before The Great Recession
You may have heard that we’re in the middle of an unemployment crisis. It’s little wonder that an average of 365,500 people per week made new claims for unemployment benefits over the past month. These high numbers have been straining unemployment insurance programs at the federal and state level, and many states have run out of reserves to pay for them, triggering a reduction in benefits. But this crisis wasn’t inevitable. The pull back in unemployment benefits is just another result of state-level choices to cut taxes at the expense of state spending, spending that could be cushioning the blow of the Great Recession.
States are unable to adequately finance their unemployment insurance programs just when they are most needed not because they were unexpectedly overwhelmed. As a new report from the National Employment Law Project shows, it was because they failed to finance them during the good times like they’re supposed to. Here’s the way it works: federal law requires each state to collect unemployment insurance contributions from employers and deposit them into a state trust fund held in the treasury. During good times, the trust funds accumulate reserves so that claims can be paid out during downturns. This makes the program countercyclical, helping to pump money into workers’ pockets and therefore businesses (via their spending) when times are tough.
The problem is that employer contribution rates vary among and even within states. Not shockingly, business groups turn on political pressure to reduce employer contributions and taxes during good times before the coffers are adequately full. And too many states gave in to this temptation before the recession. As the report notes, “Thirty‐one states reduced UI taxes by at least 20 percent between 1995 and 2005.” Meanwhile, from 2000–09 the average UI contribution rate was .65 percent of total wages, “the lowest in the life of our federal‐state UI program.” That left many of the reserves underfunded, especially when they were called upon to respond to the financial crisis.
And now, of course, the demand for these benefits is at a historically high levels. So what have states done to address the fact that they don’t have the funds to pay them out? The solutions “have tended to focus more on curtailing and reducing benefit payments than on the revenue side of the equation,” the report says. That is, rather than looking at ways to hike taxes or employer contributions to make up the shortfall, most states have cut back on benefits for the unemployed.
Over the past thirty years, lawmakers have eroded long-standing features such as the duration of benefits that were “previously seen as untouchable,” and today’s responses follow that trend. Six states have reduced the maximum duration of benefits below twenty-six weeks, which has been the standard since the 1950s. Other states have put up barriers to benefits, like drug testing requirements and excluding seasonal workers. Several states and even the federal government have limited the number of unemployed workers who qualify, forced skilled workers to accept low-wage jobs and lowered the value of payments. Meanwhile, most states did nothing to raise revenues or “passed token policies that will raise a negligible amount of revenue”—the only states to buck that trend were Colorado, Rhode Island and Vermont.
This may sound familiar. That’s because tax cuts have gotten in the way of other important policies at the state level. As Mike Konczal and I showed earlier this year, a handful of ultraconservative state governments were responsible for the massive wave of public sector job losses the country has experienced during the recovery. But layoffs weren’t the only option for dealing with tight state budgets: many of these states also cut corporate taxes or taxes on high-income earners (or both). Estimates have shown that without these job losses, unemployment would likely be a full percentage point lower than what it is now.
And there’s another fiscally irresponsible choice a number of states have said they’ll be making soon: the refusal to expand Medicaid as part of the Affordable Care Act. The Supreme Court ruling that upheld the law struck down the part that would have all but ensured across-the-board participation, and now at least fifteen governors are indicating that they’ll opt out—despite the fact that the federal government will pick up the tab for the full price of expansion in the early years and 90 percent after that. One study even found that the expansion could actually end up saving these states money. But even if that didn’t pan out, Richard Kim recently made a clear case that there are some pretty painless ways for these states to find the money to expand Medicaid. The only catch? They require raising taxes. Either by undoing some unnecessary tax breaks or raising taxes modestly, the states that are threatening fiscal ruin at the hands of this mandate can actually easily afford what it’ll cost them. Small price to pay when Medicaid saves lives.
So-called “tough choices” aren’t always so tough. Some of the policies that are exacerbating the effects of the recession and hurting the most vulnerable among us have been implemented because states refuse to look at the revenue side of their ledgers. The choices to lower taxes or ignore raising them aren’t made in a vacuum. There are often painful consequences, borne by those who can least afford it.
By: Bryce Covert, The Nation, August 6, 2012
Withdrawing Unemployment Insurance Will Not Solve Job Crisis
1. The Long-Term Unemployed Are in Dire Financial Shape.
Eliminating unemployment insurance will make matters much worse for those who are already experiencing a financial disaster. In 2009, the Heldrich Center conducted a national survey of workers who lost a job during the recession. When we re-contacted them in August 2011, we found that 4 in 10 were still unemployed or working part time and looking for full-time jobs. Among that group, three quarters had been out of work for more than six months. Fully half had been jobless for more than two years. Their financial condition is dire. They have not only reduced spending on things they would like to have, like vacations and clothing, but also on things they need, such as food, transportation, and healthcare. Sixty percent have sold possessions and borrowed money from family or friends.
2. UI Benefit Support Makes Re-employment More Likely, Not Less.
Eliminating UI will lead to less job seeking, not more. Our surveys found that–compared to people without UI support–those receiving UI spent more time each week going to job interviews and job fairs, networking with friends and colleagues, and scouring the Internet and newspapers for job openings. Enrollment in UI programs keeps workers in the labor market. They get more advice, encouragement, and training. And, job seekers on UI are required to regularly report to state employment agencies about their job search activities.
3. Cutting UI Benefits will drive up the cost of other government programs.
Without UI payments, more unemployed workers will drop out of the labor market and fall into other government safety-net programs. Seven in 10 of the long-term unemployed workers in our study described their financial condition as flat-out “poor.” Yet, the average UI benefit of $1,200 per month–less than the $1,400 average monthly cost of housing in America–is often the vital source of income that enables them to pay their mortgage and feed their family. Withdrawing UI will not solve the job crisis in America, but it will drive up spending in other federal programs, such as food stamps, disability insurance, Social Security, Medicare, and Medicaid. Unemployed workers–who would much rather get a job than get a check from the government–will be driven to these programs as a last resort.
By: Carl E. Van Horn, U. S. News and World Report, December 9, 2011
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