Americans Don’t Turn Their Backs On Americans In Need
As our economy struggles to regain its footing after the worst recession in the lifetime of most Americans, some Republicans in Congress seem determined to erect barriers to economic recovery. They threatened the full faith and credit of the United States. They brought our government to the brink of a shutdown. They have consistently failed to offer meaningful legislation to encourage job creation. And most recently, they refused to ask our nation’s wealthiest individuals and corporations to pay their fair share toward our national security and other vital public services.
Now, in the midst of the holiday season, many unemployed Americans and their families are left wondering if Republicans will once again undercut consumer demand and business confidence. At the end of December, the federal unemployment insurance programs will begin to shut down, despite the fact that there are still roughly 6.5 million fewer jobs in the economy today than when the Great Recession started in December of 2007. As a result, over 6 million will have their benefits terminated by the end of 2012.
My legislation, the Emergency Unemployment Compensation Extension Act, would ensure that this does not happen.
Termination of extended federal unemployment coverage would deal a devastating blow to Americans who have lost their jobs through no fault of their own and who depend on this lifeline until they can again make ends meet. And make no mistake—allowing these families to fall through the safety net would also hurt our economy. Depriving jobless Americans of the money they need to put food on the table, shoes on their children, and keep a roof over their head will cut consumer demand for thousands of local businesses and increase the number of home foreclosures. According to the Economic Policy Institute, cutting off unemployment benefits would cost over 500,000 jobs.
Nonetheless, some Republicans suggest we cannot afford to maintain assistance for the unemployed. That’s right, the same crowd that continues to promote big tax breaks for the wealthiest few, while preserving multinational corporate tax loopholes, argues that helping the unemployed is just too high a mountain for our country to climb.
These are the same Republicans who blame unemployment on the unemployed. Never mind that unemployment insurance replaces less than half of a worker’s former wages and the average unemployment check fails to get a family of four above 70 percent of the poverty level. There are over four unemployed workers for every job opening, meaning that even if every single available job was taken by an unemployed worker there would still be over 10 million of our fellow citizens without work.
As Congress debates my bill, I hope representatives don’t recall just the numbers, but the real people behind them, people like Lynnette, an unemployed worker: “I’m fifty now. It’s the first time I’ve drawn unemployment in my life. I’m tired, I’m demoralized. It was extremely hard for me to get where I was. I strived and fought and suffered. I paid more than my share of dues. I did everything I was supposed to do…Please extend the benefits. Please be aware that this country didn’t suddenly become filled with lazy folks who don’t want to work.”
Americans don’t turn their backs on Americans in need. The time to extend this critical program that serves as a lifeline for so many families is now.
By: U. S. Rep Lloyd Doggett, 25th District of Texas, U. S. News and World Report, December 9, 2011
Mitt Romney On Foreclosurers: ‘Any Owners Who Lose Their Homes Are Getting What They Deserve’
Since the housing bubble began to burst six years ago, prices nationwide have fallen by a third. Nearly $7 trillion of home equity has been wiped out. Currently, some 14.7 million homeowners owe $700 billion more on their mortgages than their homes are worth. Going forward, prices are likely to fall further as banks put a backlog of foreclosed properties on the market. As home prices fall and more homeowners sink underwater, there will be more foreclosures and more price declines.
So what is Mitt Romney’s response? Bring it on.
In interviews and in the Republican presidential debates, Mr. Romney has said that the cure for foreclosures is for the government to get out of the way and let the process run its course. Once prices hit bottom, investors and want-to-be homeowners would presumably swoop in and prices would stabilize.
The argument might have some red-meat appeal, playing off the notion that any owners who lose their homes are getting what they deserve. It is wrong on several counts:
Efficiency.
Mass foreclosures are a rotten way to stabilize the market. They impose huge costs on neighbors, communities and local governments, and on the broader economy, as falling prices erode equity, depress consumer spending and mire the housing market in a deep hole.
Logic.
Who does Mr. Romney think will buy up millions of foreclosed properties? Borrowers who lose their homes to foreclosure or who sell their homes for less than the balance on their mortgages can be denied credit for years; many will never be homeowners again.
Many college graduates, unable to find jobs, are moving in with their parents, not starting careers, not starting families and not becoming first-time home buyers. High school graduates are despairing of any economic toehold. Investors are inclined to buy distressed properties only if they believe home values will rise, a confidence that is hard to come by in a market that is threatened by more foreclosures and renewed price declines.
Danger.
With the economy still weak and vulnerable to shocks, more foreclosures and the resulting price declines would only weaken the economy further.
Fairness.
The let-it-crash argument conveniently ignores that the housing bubble was the result not only of overborrowing but of reckless lending too. When the bubble burst, the banks were bailed out, while speculators and uncreditworthy borrowers — whom lenders had aggressively pursued during the boom — quickly began to lose their properties. But the economic damage went far beyond the “bad” borrowers, as evidenced by deep recession, ensuing slow growth, high unemployment and crashing home values — all of which has now harmed millions of homeowners who never went near a subprime mortgage. They are the collateral damage of the banks’ binge and bailout. They deserve help, not scorn.
That is not to say that every troubled borrower can be saved. Of the estimated 14.7 million underwater borrowers, 1.6 million are lost causes, according to Moody’s Analytics. Many have already abandoned their homes, leaving them vacant, or are hopelessly behind on their payments, often because of long-term unemployment. This group needs policies to help convert homes to rentals.
Another 1.6 million underwater borrowers have missed payments because of a setback, like job loss, that may prove temporary. They could be helped with forbearance, allowed to make no or reduced payments for a time, and make up the difference later, or with loan modifications that result in meaningfully smaller payments.
The remaining 11.5 million underwater homeowners are current in their payments, but are at high risk of default, since they have no equity to cushion a financial setback and no incentive to keep paying, especially if prices go down again.
Loan modifications that reduce principal balances are the best solution, because they restore equity and reduce monthly payments. The banks would take a hit on principal write-downs. So be it. Refinancings, which the Obama administration is in the process of expanding, also help, because a new loan with a lower rate makes staying in the home more affordable. Mr. Romney has said refinancing is “worth further consideration.” Investors in mortgage-backed securities will take a hit on refinancings. So be it.
At a recent debate, Mr. Romney was asked why he was willing to risk further huge losses in home equity by pushing foreclosures. “What would you do instead?” he replied. “Have the federal government go out and buy all the homes in America?”
No one is suggesting that. What is needed is a set of policies — rentals, forbearance, principal write-downs and refinancings — on a scale that tackles the problem.
By: The New York Times, Editorial, November 26, 2011
“Descending From The Mountaintop”: House Republicans Keeping The Faith
After preaching for weeks about the urgency of Washington taking action to create jobs, lawmakers decided to put their mammon where their mouths are. And so on Tuesday evening they descended from the mountaintop and came forth to anoint a jobs bill of biblical proportions:
“H.Con.Res 13 — Reaffirming ‘In God We Trust’ as the official motto of the United States.”
The grace of this legislation, taken up on the House floor, was not immediately revealed to all. “In God We Trust” has been the nation’s official motto for 55 years, engraved on the currency and public buildings. There is no emerging movement to change that. But House Republicans chose to look beyond the absence of immediate threats and instead protect the motto against yet-unimagined threats in the future.
The legislation “provides Congress with the opportunity to renew its support of a principle that was venerated by the founders of this country, and by its presidents, on a bipartisan basis,” supporters claimed in their analysis. “This Congress can now show that it still believes and recognizes those same eternal truths by approving a resolution that will allow today’s Congress, as representatives of the American people, to reaffirm to the public and the world our nation’s national motto, ‘In God We Trust.’ ”
The infidel opposition took a rather different view. “We are focused on jobs measures,” said Brian Fallon, spokesman for Senate Majority Leader Harry Reid. “The House Republicans will hopefully get the message to do the same, God willing.”
In a dissenting analysis of the legislation, a group of House Democrats took a similarly skeptical stance. “Today we face the highest budget deficit in our nation’s history, a national unemployment rate of nearly 9 percent, and an ongoing mortgage foreclosure crisis,” they wrote. “American forces are deployed in combat on several fronts. . . . Yet, instead of addressing any of these critical issues, and instead of working to help American families keep a roof over their heads and food on their tables, we are debating whether or not to affirm and proliferate a motto that was adopted in 1956 and that is not imperiled in any respect.”
Then there’s the matter of whether Republicans violated their own promises by bringing up a ceremonial resolution and taking the God bill to the floor without a hearing. House GOP rules forbid suspending House rules to pass a bill if it “expresses appreciation, commends, congratulates, celebrates, recognizes the accomplishments of, or celebrates the anniversary of, an entity, event, group, individual, institution, team or government program.” (It might be argued that God, though an entity, is exempt from the provision.)
So what, pray tell, are Republicans up to? They can tell their constituents that they are doing the Lord’s work in the devil’s town. Because it is still too early to complain about efforts by the ACLU to snuff out Christmas, the In-God-We-Trust legislation provides a stand-in straw man. There’s certainly some appetite for this: Internet rumors proliferated after President Obama’s inauguration warning that he was seeking to remove “In God We Trust” from U.S. coins.
But it also conveys an impression to independent voters that, at a time of economic crisis, Republicans continue to focus on God, gays and guns.
Of course, there may be innocent explanations for the In God We Trust bill. “God” and “job” are both three-letter words with the same vowel. House Republicans may have been confused by the similarity, much like the dyslexic agnostic who wonders if there is a dog.
Notably, the House majority saw no need to protect the nation’s other motto, the one from the Great Seal of the United States that also appears on currency: e pluribus unum. But give the GOP credit for its tenacity: To continue to pursue social policies even while the nation cries out for economic relief requires the patience of Job — not to be confused with jobs.
In support of the God bill, the legislation’s champions quoted John F. Kennedy: “The rights of man come not from the generosity of the state but from the hand of God.” But they left out a better-known Kennedy passage, from his inaugural address: “let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on earth God’s work must truly be our own.”
By: Dana Milbank, Opinion Writer, The Washington Post, November 1, 2011
Illegal Immigrants Not To Blame For Unemployment
Memo to Alabama: George W. Bush was right.
The former president, making a too-late push for what could have been a game-changing, bipartisan immigration reform law, noted that immigrants now here illegally make an important contribution to the economy. They do the jobs Americans can’t or won’t do.
Opponents disagreed, arguing that the undocumented workers were stealing jobs that should go to Americans—jobs like picking fruit for low wages in the hot sun. That was a questionable claim when the economy was better, but as Alabama farmers are now learning, Bush’s statement is correct even now, when Americans are working for far less pay in jobs for which they are way over-qualified, just to have a job.
In June Alabama passed a draconian immigration law—most of which is still in place, even while courts decide its constitutionality—that has driven many immigrants from the state. The result has not been a wave of grateful unemployed teachers and skilled workers, eager to be underpaid for difficult manual labor. Instead, at the San Francisco Chronicle reports:
The agriculture industry suffered the most immediate impact. Farmers said they will have to downsize or let crops die in the fields. As the season’s harvest winds down, many are worried about next year.
In south Georgia, Connie Horner has heard just about every reason unemployed Americans don’t want to work on her blueberry farm. It’s hot, the hours are long, the pay isn’t enough, and it’s just plain hard.
“You can’t find legal workers,” Horner said. “Basically, they last a day or two, literally.”
There are a number of lessons here. One is that there are surely elected officials and people in the business community who are using the recession to roll back all kinds of hard-fought rights for workers, cutting pay, eliminating job security, and drastically reducing or zeroing out benefits. Another is that while Americans don’t want to do farm work for low wages, they also don’t want to pay higher prices for food harvested by workers paid a decent salary. That’s not an argument for abusing undocumented workers, but it’s also not an argument for scaring foreigners out of the state so locals can have their bad jobs.
What’s remarkable is that some of the same people who scream about illegal immigrants taking American jobs here in the United States are quieter when it comes to foreigners abroad taking what could be American jobs here. Outsourcing of manufacturing jobs increases corporate profits, but adds to the unemployment rate domestically. Those are jobs American will do. If that anti-immigrant worker crowd is genuinely concerned about retaining U.S. jobs, they should focus on bringing back the outsourced jobs—not evacuating the foreign workers.
By: Susan Milligan, U. S. News and World Report, October 24, 2011
The Truly Farcical “Jobs Through Growth Act”
I suppose Senate Republicans deserve at least some credit for making an effort. The congressional GOP has largely ignored the jobs crisis, so the fact that Sens. Lindsey Graham (R-S.C.), John McCain (R-Ariz.), and Rand Paul (R-Ky.) have put together the “Jobs Through Growth Act,” is at least marginally constructive.
The problem is with the “plan” itself.
What do Senate Republicans want to do to give employment a boost? Cut taxes, approve a balanced budget amendment to the U.S. Constitution, eliminate the entirety of the Affordable Care Act, eliminate the entirety of Wall Street reform safeguards, blocking EPA enforcement of clean air measures, and a tax repatriation holiday for international corporations.
When President Obama unveiled the American Jobs Act, it had been deliberately crafted to include several provisions that Republicans have traditionally supported. Graham, McCain, and Paul didn’t bother. Try not to be surprised.
The GOP senators boasted their plan would create 5 million jobs. And how would that happen? Who came up with that number? How would Republicans pay for their plan? How quickly would it make a difference?
They didn’t say. In fact, unlike the detailed jobs bill presented by the White House, the “plan” from Senate Republicans is a wish list of far-right ideas, but it’s also lacking in the sort of substantive details that serious proposals require.
And that’s precisely why this nonsense is so farcical.
The premise of Obama’s proposal was that the two parties couldn’t agree on their long-term vision of government, but the economic emergency was too severe to wait until the election to settle it, so they should act immediately on short-term ideas that have bipartisan support. The GOP response is to issue a series of exclusively long-term proposals lacking any bipartisan support. There’s not much pretense of intending to address the current crisis when your plan has as its cornerstone the passage of a Constitutional amendment. […]
On jobs, the GOP simply will not engage with the premise of the entire macroeconomic forecasting field that the economy is suffering from a lack of demand. The purpose of this bill is to straddle that awkward divide, and provide a sound bite to answer Obama when he says he has a jobs plan.
That’s plainly true. In fact, McCain, who admits he doesn’t understand economic policy, told reporters yesterday he and his cohorts put this plan together in part as “a response to the president saying we don’t have a proposal.”
Senator, I’ve seen your plan. You still don’t have a proposal.
The intellectual bankruptcy of the Republican Party is just astounding. It has no new ideas, no constructive solutions, no creativity, no depth of thought, no intellectual consistency, no recollection of their own failures, no understanding of economic policy, and no access to calculators.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, October 14, 2011
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