Posts tagged with 'working in these times'
Weekly Pulse: Obama to Push for Reconciliation
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By Lindsay Beyerstein, Media Consortium blogger
Today, President Barack Obama will deliver a speech to Congress outlining his plan to move forward on health care reform. The president is expected to advocate the use of budget reconciliation.
Art Levine of Working In These Times warns that some centrist Democrats are already getting cold feet on reconciliation. Sen. Kent Conrad (D-ND), chair of the Senate Budget Committee, went on TV to declare reconciliation impossible. These guys just don’t get it. It’s reconciliation or defeat. There is no other way. Without reconciliation, the bill dies. Without a bill, the Democrats get massacred in the mid-term elections. (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 Pulse: Obama Stalls for Time With Health Care Summit
By Lindsay Beyerstein, Media Consortium Blogger
President Barack Obama’s February 25 health care summit, where he will appear on TV with Republican leaders, has been hailed and assailed as yet another gesture towards bipartisanship. But the summit is really a delaying tactic. It’s a decoy, something shiny to keep the chattering classes entertained while Congressional Democrats wheel and deal furiously behind the scenes.
At this point, there are two ways forward, and neither of them require Republican support. The first option is for the House to pass the Senate health care bill as written—but with the understanding that the Senate will later fix certain contentious parts of the bill through reconciliation. The second option is for the Senate to pass the reconciliation fix first and the House to pass the bill later. (more…)
Weekly Audit: Attack of the Imaginary Budget Demons
By Zach Carter, Media Consortium Blogger
On Feb. 1, President Barack Obama unveiled his 2011 budget proposal. While conservative pundits reacted with predictable, yet preposterous, wailing about the federal budget deficit, the short-term U.S. budget outlook is just fine. If anything, Obama’s budget doesn’t dedicate nearly enough funding to create jobs.
As John Nichols notes for The Nation, Obama budgets just $100 billion for jobs in fiscal 2011. The amount is nowhere near enough to make a significant dent in the epic unemployment rate. The government’s fiscal 2011 calendar begins in October of this year, and by that time, the stimulus package Obama pushed through in February of 2009 will have been exhausted, leaving the labor market without serious support from the federal government. (more…)
Weekly Audit: Fighting Economic Inequality in Haiti and at Home
By Zach Carter, Media Consortium Blogger
Rampant poverty can’t be written off as the result of historical accident or a worker’s incompetence. It is actively cultivated by bad public policies that direct economic resources into the hands of a wealthy few. The resulting inequality creates unnecessary suffering all over the world, from the humanitarian crisis in Haiti to the alarmingly high poverty rate in the United States. (more…)
Weekly Audit: Getting it Right in 2010
By Zach Carter, Media Consortium Blogger
The new decade offers a great opportunity to not only look back on the policies that led to our current economic malaise, but consider other ways of building stability that won’t wreak economic and ecological destruction.
Here’s a quick round up of some smart articles that address how economic policy changes could shift the way we work and live in the next decade. (more…)
Weekly Audit: Crashing the Corporate Christmas Party
By Zach Carter, Media Consortium Blogger
While Wall Street will ring in the new year with huge bonuses and taxpayer-fueled profits, there is little holiday cheer for the workers whose tax dollars funded the bank bailouts. Although bank stock prices have soared for most of the year, the unemployment rate has steadily climbed and the foreclosure crisis has swelled to epic proportions.
Nomi Prins details the disconnect between Wall Street and the rest of us for AlterNet. The government’s massive giveaways to big banks did not stop with the $700 billion Troubled Asset Relief Program. In fact, earlier this month, the Internal Revenue Service granted Citigroup a $38 billion tax break for, well, nothing. Like every other financial boon the Treasury and the Federal Reserve have granted banks since 2008, this special holiday gift will help boost Citigroup’s profits, but does little to boost lending to small businesses, lower credit card interest rates or help struggling borrowers stay in their homes. (more…)
Weekly Pulse: No Public Option: Worse Than Nothing?
By Lindsay Beyerstein, Media Consortium Blogger
In search of the elusive, filibuster-proof 60th vote, Senate Majority Leader Harry Reid eviscerated the Senate’s health care reform bill on Tuesday. Potential GOP swing voter Sen. Olympia Snowe (R-ME) confirmed that Reid promised to kill both the public option and the expanded Medicare buy-in, according to Brian Beutler of Talking Points Memo.
Snowe didn’t pledge to support the bill, of course. She didn’t even promise to cooperate on the procedural votes required to pass the bill before Christmas, a deadline that the Obama administration has its heart set on. In other words, Reid gave away the progressive crown jewels of health reform on spec to a senator who cheerfully turned around and continued the Republican stalling strategy. From Snowe’s vantage point, that’s a great move. The longer the bill hangs in limbo, the more Reid will give away.
Former Democrat Joe Lieberman (I-CT) seems determined to kill the bill. Lieberman must be motivated more by a desire to spite liberals than any principled policy stance. He keeps threatening to filibuster policy proposals he once campaigned on, like the Medicare buy-in. Lee Fang of TAPPED notes that Lieberman told the New York Times that he now opposes the buy-in because it’s beloved of lefty single-payer types like Rep. Anthony Weiner (D-NY); and the policy wonk behind the public option, Prof. Jacob Hacker.
The Women’s Media Center has launched the #UnderTheBus campaign, which calls on supporters to contact their representatives and urge them not to let Lieberman and his close, anti-choice ally Ben Nelson (D-NE) sell out women’s health care for political gain. Nelson has hinted he won’t vote for the bill unless it contains strong abortion funding restrictions.
Stephanie Mencimer reports in Mother Jones that a bunch of teabaggers decided to stage a sit-in to oppose the health bill at Lieberman’s office. Mark Meckler and some Tea Party Patriots showed up at Lieberman’s office and asked to meet with the senator. When they were told he wasn’t available, they all sat down. When they tried that routine at Sen. Barbara Boxer’s office (D-CA), her staff ignored them. Lieberman’s staff called the cops. (Note to teabaggers: Sit-ins are for enemies, not allies.)
The senate bill is so watered down that it wouldn’t even stop insurance companies from capping benefits, as Roger Bybee reports at Working In These Times.
Former congressional candidate Darcy Burner says she’d rather see the bill die than have it pass in its current state.She argues that if health care reform doesn’t curb costs, it’s just a Band-Aid on a gaping wound. She writes in AlterNet:
The fundamental failing of the newest Senate proposal is that it requires individuals to purchase health insurance, but does nothing to rein in what insurance companies charge. There is nothing to stop spiraling health costs from eating up an ever-increasing percentage of our national productivity.
The House bill has two major cost-control mechanisms: the public option and the 85 percent medical-loss ratio requirement. The Senate bill is on track to have neither, and nothing new to replace them. The Senate bill is a recipe for national disaster. If it’s that bill or nothing, I prefer nothing.
Adding insult to injury, the Senate also voted down a bill yesterday that would have made it easier for consumers to purchase cheaper prescription drugs abroad. Mike Lillis of the Washington Independent suggests that the White House was relieved to see the Dorgan-Snowe bill defeated because it would have violated the deal it struck with pharmaceutical companies earlier this year. The drug companies promised up to $80 billion for health care reform if Democratic leaders withheld support for several initiatives that would cut into drug company profits.
This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, 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.
Weekly Audit: Jobs, Jobs, Jobs
By Zach Carter, Media Consortium Blogger
President Barack Obama invited leading economic thinkers to a job creation summit on Thursday to help combat the worst unemployment crisis in decades. The stakes couldn’t be higher: If Obama can’t build momentum for robust legislation that will create jobs, the unemployment rate could remain in double-digits all the way through 2011.
In Salon, Andrew Leonard highlights some positive comments Obama made at the jobs summit. In an exchange with The American Prospect’s Robert Kuttner, Obama said that the long-term budget deficit is an issue, but that the best way to reduce that deficit is to spur economic growth. When the economy is growing, the same tax rates reap greater returns for the government. (more…)