Posts tagged with 'obama'
Weekly Pulse: Obama to Promote Health Plan at Summit
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By Lindsay Beyerstein, Media Consortium blogger
On Monday, the White House released its plan for health care reform, which resembles the Senate bill with additional concessions for liberals and labor unions. Tomorrow, President Obama will hold a televised health care summit. Obama is billing the summit as a last-ditch attempt to solicit Republican ideas for health care reform. In fact, he’s hoping to give the GOP enough rope to hang itself.
It takes two…
As Katrina vanden Huevel argues in the Nation, bipartisanship takes two parties, but the Republicans have refused to negotiate unless health care reform starts over from scratch. That’s not bipartisanship, that’s showboating. President Obama is giving the Republicans one last chance to waste the entire country’s time so that he can point to the sorry spectacle and say, “Look, what they made us do.” (more…)
Weekly Audit: More Jobs Please
By Zach Carter, Media Consortium Blogger
One year after President Barack Obama secured passage of his critical economic stimulus package, the U.S. Senate is finally taking anther look at how to create jobs and repair the economy. These issues are more important than ever, but absurd Republican obstructionism and timid Democratic negotiation are once again threatening good public policy.
Not really bipartisan, is it?
As Steve Benen notes for The Washington Monthly, the Senate Finance Committee reached a “bipartisan” agreement to supposedly spur job creation last week. Republicans demanded billions in tax cuts for wealthy people, but kept on caterwauling about the federal budget deficit. In exchange for $80 billion to dedicate to jobs—an extremely modest figure given the state of the labor market—Republicans asked for hundreds of billions in giveaways for the rich. And that’s just to get the bill through the Finance Committee, much less the full Senate. (more…)
Weekly Mulch: What’s Missing from the New Clean Energy Agenda?
By Sarah Laskow, Media Consortium Blogger
Nuclear power, biofuels, clean coal: These are the Obama administration’s answers to climate change. The 2011 budget, released this week, promised new loans for the construction of nuclear power plants, and on Wednesday the Environmental Protection Agency (EPA), White House, and other departments detailed steps to encourage ethanol and clean coal production.
These initiatives may garner support from conservatives, but their ascendancy comes at a price. Support for renewable fuel sources, like wind and solar, has dwindled. President Barack Obama did encourage Senate Democrats to pass a climate change bill, but some moderates are bucking the cap-and-trade provisions that could tamp down carbon emissions. Those moderates are pushing for legislation that leaves carbon caps out entirely. (more…)
Weekly Mulch: Climate Change On Obama’s Back Burner
By Sarah Laskow, Media Consortium Blogger
In his first State of the Union address, President Barack Obama touched on climate issues only briefly. He called on the Senate to pass a climate bill, but did not give Congress a deadline or promise to veto weak legislation. Nor did he mention the Copenhagen climate conference, where international negotiators struggled to produce an agreement on limiting global carbon emissions.
The Obama administration’s attitude towards climate change still represents a remarkable shift from the Bush years, when global warming was treated as little more than a fairy tale. But in the past year, Congressional squabbling has stalled climate legislation, and international negotiators nearly gridlocked in talks over carbon admissions at the multinational Copenhagen conference. Without strong leadership from the president, work to prevent this looming environmental crisis will stall. (more…)
Weekly Audit: Just Who is Obama fighting for?
By Zach Carter, Media Consortium Blogger
Progressives have waited a year for President Barack Obama to roll up his sleeves and fight for serious financial reform. Last week, he finally jumped in the ring, telling weak-kneed Senators to stand up to Wall Street and endorsing a critical ban on risky securities trading.
But while it was good to see Obama start throwing financial punches against the banks, this week he also started throwing them at workers. His recent rhetoric on implementing a spending freeze to reduce the deficit is an economic catastrophe in the making. It indicates that Obama is willing to sacrifice jobs to try and win over Republicans. (more…)
Weekly Pulse: A Senate Bill By Christmas?
By Lindsay Beyerstein, Media Consortium Blogger
Early Monday morning, the senate voted 60-40 along straight party lines to defeat the initial attempt to filibuster the health care reform bill. Yesterday, it passed the second of three procedural votes, bringing the Senate one step closer to a final vote on the health care reform bill. Majority Speaker Harry Reid (D-NV) is on schedule to vote on the bill before Christmas. (more…)
Weekly Audit: Stop Wall Street’s Economic Rampage
By Zach Carter, TMC Blogger
Over the past year, Wall Street’s excess has helped push the unemployment rate to epic levels and created millions of foreclosures. Yet the rules of the financial road remain unchanged. As 2009 draws to a close, it’s astonishing that so little progress towards financial reform has been made.
President Obama, Congress and federal regulators have not been tough enough on the nation’s financial elite. As Monika Bauerlein and Clara Jeffery emphasize for Mother Jones, the government has committed about $14 trillion in bailout funds to save the banking system without demanding much of anything in return. Goldman Sachs and other big banks are now planning to pay giant bonuses that come straight from taxpayer giveaways rather than invest that money in socially constructive banking.
“Bankers aren’t being rewarded for pulling the economy out of the doldrums,” Bauerlein and Jeffery write. “Nope, they’re simply skimming from the trillions we’ve shoveled at them.”
The major banks are even spending our bailout money to lobby against reform. When President Obama called a meeting for leaders of the nation’s largest banks to scold them for their lobbying, the heads of Morgan Stanley, Goldman Sachs and Citigroup didn’t even bother to show up, as Matthew Rothschild describes in a podcast for The Progressive.
It’s easy to see why the bank execs are so indifferent, Rothschild argues, even to the president. Now that almost all of these banks have repaid the loans they received under the Troubled Asset Relief Program (TARP), Obama has no negotiating leverage and the bankers know it. Even though it represents just a tiny fraction of the $14 trillion bailout, TARP was the only program that attached any strings to that money. Prior to those TARP repayments, Obama could have demanded that banks do more lending to help the economy, work harder to keep troubled borrowers in their homes—or face executive compensation restrictions or other penalties.
And many of the same regulators who helped bring about today’s economic disaster are still in power. As Sen. Bernie Sanders (I-VT) explains for Brave New Films (video below), Federal Reserve Chairman Ben Bernanke blew just about every major policy decision he faced in the years leading up to the crisis. Bernanke, who was recently named person of the year by Time magazine, failed to rein in reckless mortgage speculation, predatory lending or excessive compensation packages. Nevertheless, President Obama has appointed him to another term.
“This recession was precipitated by the greed, recklessness and illegal behavior on Wall Street,” Sanders says. “One of the key responsibilities of the Fed is to maintain the safety and soundness of our financial institutions … The Fed was asleep at the wheel, Bernanke did not do the job.”
Sanders notes that even Bernanke’s financial clean-up operations have been deeply flawed. Bernanke has helped make today’s too-big-to-fail banks even bigger. If we want to stop the lobbying and policy deference that politicians grant to Wall Street, we have to break up the biggest banks into smaller firms that do not endanger the economy if they fail.
Bernanke is not the only holdover from the Bush administration that wields significant economic power under Obama. As I note in a piece for The Nation, John Dugan, the top bank regulator appointed by President George W. Bush, remains in office today, despite failing to ensure the financial health of our largest banks and actively working to undermine consumer protection.
Campaign contributions from the bank lobby will not be enough to counter the voter outrage that President Obama and members of Congress are facing, nor should they. If our leaders want a serious shot at re-election, they need to recognize the need for significant change on Wall Street. That means breaking up the big banks and setting economic policy that helps all of our citizens, not just financiers.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Audit: House Bank Bill Fatally Flawed
By Zach Carter, Media Consortium Blogger
Last week, the House of Representatives finally approved a financial regulatory overhaul and President Barack Obama announced a new initiative to address the unemployment crisis. Both are a step in the right direction, but neither offer effective solutions to problems that still plague the U.S. economy.
The House bill doesn’t do away with too-big-to-fail banks and that’s a big problem. As John Nichols explains for The Nation, “the big banks aren’t going to get sidelined—let alone broken up—anytime soon.” Instead of splitting large, risky banks into smaller firms that could fail without wreaking economic havoc, the House bill gives regulators more power, including the ability to bail out a faltering bank with billions of taxpayer dollars. When push comes to shove, regulators are not going to risk letting a major bank fail. They’ll just bail the company out. We all saw what happened when Lehman Brothers collapsed last year.
By imposing a tougher set of rules on banks, it’s conceivable that regulators could prevent some future failures. But as Mary Kane notes for The Washington Independent, Congress carved so many loopholes in the new laws that banks will have little trouble skirting them.
Obama had hoped to create a new Consumer Financial Protection Agency (CFPA) to crack down on predatory lending, but a coalition of bank-friendly Democrats pushed through amendments that significantly weaken it. Obama wanted states to have the power to enforce stronger rules on predatory lending. Under a loophole that Rep. Melissa Bean (D-IL) pressed into the House bill, states are prevented from writing or enforcing rules that limit interest rates charged by credit card companies and payday lenders. That’s a really destructive move, Kane notes, since it was state regulators, not federal regulators, who cracked down on abusive lending over the past decade.
Obama also hoped to require that risky derivatives transactions would be conducted via exchange like ordinary stock trades. Derivatives are the type of trades that brought down AIG. But the House bill exempts a huge portion of transactions from this requirement and changes the definition of “exchange” to include private, unregulated derivatives trades, as Nick Baumann explains for Mother Jones. This is a fatal flaw in the regulatory overhaul. Derivatives are the primary technique that banks use to make themselves too-big-to-fail. Over 95% of the $290 trillion derivatives market is housed at just five banks. These derivatives tie the bank to other financial firms in a complicated web of risk that is impossible for regulators to navigate. If one of those five banks goes down, there’s no way a regulator can predict the consequences.
The only hope for meaningful reform right now rests in the Senate, which is considering a much tougher bill than what the House approved. But the Senate has yet to even conduct mark-up hearings on its legislation and the pressure from the banking lobby is going to be enormous. Progressives have to keep pushing for a better bill if we want to protect our economy from the abuses that brought on the current recession.
And while huge federal bailouts for banking giants like Citigroup and Bank of America have helped the financial sector recover, the broader economy is battling the highest unemployment levels since the early Reagan era. Things are poised to get a lot worse. As Daniela Perdomo emphasizes for AlterNet, a full 3.2 million workers will lose their unemployment benefits by the end of March 2010. Even if the unemployment rate stays where it is—and Perdomo notes that a vast majority of experts think its going to go higher—the impact on ordinary people is going to be even more severe than today’s nightmare.
In a blog post for Working In These Times, Roger Bybee highlights a piece by Harvard University Law School Professor Elizabeth Warren, who emphasizes the hardships faced by ordinary families. The statistics are grim—one-eighth of Americans are on food stamps, one-eighth cannot pay their mortgages and 120,000 families are filing for bankruptcy every month.
We need to take serious steps to get people back to work. Mass unemployment means that consumers don’t spend money, which means that companies don’t sell as much, which makes companies lay off more workers to cut costs. It’s a self-reinforcing cycle. The market can’t fix unemployment without help.
So Obama’s Dec. 8 speech announcing a new job-creation plan was a welcome event. But the concrete aspects of Obama’s plan are not effective. All the tax cuts in the world won’t necessarily put people back to work. Obama did endorse a public jobs plan which involved the government hiring people to improve the nation’s infrastructure and clean up communities ravaged by the economic crisis, but he shied away from any specific numbers.
As David Roberts explains for Grist, Obama’s willingness to sign off on a $23 billion program for environmentally friendly home renovations is a step in the right direction. The plan is being referred to as “cash-for-caulkers” and is modeled on the very successful cash-for-clunkers program. The government will pay people to increase the energy efficiency of their homes, helping people cut down on utility bills and increasing the demand for construction labor and products like new windows and doors. It’s a good idea. But if all we get are tax cuts and $23 billion for greener homes, the jobs bill is not going to assuage the unemployment crisis.
There is no reason to be concerned about the cost of a thorough jobs program. Taxpayers committed trillions of dollars to help the financial sector weather the economic storm. Anybody who is worked up about the prospect of spending money on jobs should read Amitabh Pal’s piece for The Progressive. A modest tax on speculative trades of stock and derivatives could easily raise $150 billion a year to finance a robust jobs program.
At this point in the economic downturn, the government needs to take much stronger steps to rein in Wall Street and create jobs. We know what needs to be done to protect the economy from risky banking and we can afford to fix the unemployment crisis. All we need is the political will.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
The Mulch: The Cop15 Blame Game
By Alison Hamm, Media Consortium Blogger
At the United Nations Climate Change Conference in Copenhagen (Cop15), global leaders aren’t just negotiating a climate deal—they’re positioning to avoid blame if the talks fail.
David Corn reports for Mother Jones that as soon as U.S. climate change envoy Todd Stern arrived at the Bella Center this Wednesday, he quickly listed all of the Obama administration’s actions to address climate change: The Clean Air Act, the proposed reduction in emissions, boosted fuel economy standards, and so on. Stern then changed the subject to China, observing that “by 2020, China’s emissions will top those from the United States’ by 60 percent, and then by 80 percent in 2030.”
Stern’s message is clear: If the talks don’t succeed, it’s not America’s fault. Corn writes that “with fundamental questions unresolved—particularly the obligations of China and the other major developing nations—it’s quite possible the talks could collapse and yield an orgy of accusation. Thus, the need for governments to fret about Plan B, as in Plan Blame. The real problem is, if such a worst-case scenario does occur, each of the major players will indeed have plenty of cause to point fingers at the others.”
But are we really in a position to point fingers? The United States spent an average of $130 billion a year on the wars in Afghanistan and Iraq from 2003 to 2009. The Obama administration has requested $138.6 billion for 2010, plus approximately $30 billion more for the additional troop surge.
When the Congressional Budget Office estimated the cost of a climate bill several months ago, it came up with a dramatically different sum: $22 billion per year.
As Matthew Yglesias writes for The American Prospect, “the United States has in the recent past undertaken initiatives that cost dramatically more than a strong climate initiative. We did it because we could afford it, and because the political elite in the United States takes military ventures seriously and wants to see them succeed. Well, averting catastrophic climate change is important too. … Whether we leave a legacy of leadership that meets that challenge will be determined largely by what happens at Copenhagen and what the Senate does to live up to whatever commitments the Obama administration makes there.”
The final deal needs to be inclusive of all people. Mantoe Phakathi of Inter Press Service writes that the deal needs to account for gender rather than simply classifying women as “vulnerable groups,” a term used in climate change policies in many countries, including South Africa and Kenya.
“Gotelind Alber, a researcher for the U.N.’s agency for housing, UN-HABITAT, said women in city slums are more vulnerable after natural disasters—women are often last to hear warnings of coming disasters, unable to move quickly while safeguarding children in their care, and in the breakdown of order that typically follows, exposed to violence.”
Finally, in the largest demonstration so far at Cop15, hundreds of youth created a “climate storm” inside the Bella Center yesterday, as Joshua Kahn Russell reports for Grist. The young activists clapped, snapped, and pounded their feet in representation of the typhoons and hurricanes that have ravaged communities around the world this year [Video below].
This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
The Mulch: What’s at Stake in Copenhagen?
By Alison Hamm, Media Consortium Blogger
Over 15,000 people from 192 countries began to work towards an international climate deal today in Copenhagen. These discussions are part of the largest and most important United Nations climate change summit in history. After two years of contentious negotiations, heads of states are convening through Dec. 18 to curb greenhouse gases, encourage the development of clean energy, and transfer hundreds of billions of dollars to help developing nations curb climate change.
It’s going to be a lively 11 days. Jacob Wheeler has already posted video (below) of a demonstration to save the climate for In These Times‘ blog, The ITT List. For live coverage of the Cop15 summit, make sure to check out video streams hosted by The UpTake and OneWorld. (more…)