| "Only dull people are brilliant at breakfast" -Oscar Wilde |
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"The liberal soul shall be made fat, and he that watereth, shall be watered also himself." -- Proverbs 11:25 |
Labels: 2012 election, Better Democrats, hope, hopelessness
Did you hear the happy news? Dollar General stores will hire 6,000 people this year. Yes America, hiring is back!
Actually, curb the enthusiasm. This isn't the stuff that robust middle class recoveries are made of. According to Payscale.com, the Dollar General chain pays its assistant managers $9.22 an hour and store managers $11.51 an hour. Cashiers and sales associates make barely over minimum wage. We're talking about thousands of new jobs between $20,000 and $30,000 a year.
It's a sign of the times. Low-wage jobs, including everything from retail sales associates to home health aides, are the bread and butter of our employment boom, while middle income jobs are on the decline.
Among the top ten occupations projected to have the largest numerical growth in the next decade, seven pay median wages under $30,000 a year, including food preparers and servers earning $16,000, and retail and home care workers who make $20,000. Home aides and retail workers are expected to add about 1.4 million positions this decade while middle-class manufacturing jobs are projected to lose more than a million jobs.
This is not the kind of job swap you want to see in a world-leading economy. Peter Creticos, president and executive director for the Institute for Work and the Economy, calls it the "down waging" of American jobs, and he fears it has and will continue to hurt the economy, blunt innovation and impoverish society at large.
"We're not growing the middle, so people on the bottom have no where to go and we're putting downward pressure on good skilled jobs for those in the middle," he said. The individuals holding jobs paying near-poverty wages will be able to find work, he continued, but making ends meet will be a struggle for a growing segment of the working population. Nearly a third of working families are struggling to buy groceries and pay utility bills, according to a recent report by The Working Poor Families Project. Talk about making work not pay.
Low-wage jobs have always been part of the economic landscape, the same way every pyramid has a base. But in the last 30 years, wages at the bottom of the pyramid have barely budged but low wage jobs have grown. The Great Recession exacerbated this trend by creating a glut of needy workers who would accept even less money to get off unemployment, putting more downward pressure on lower wages.
How is the media handling this? Rather than ask how we can rescue tens of millions of underpaid workers, today's headlines pretend the real problem is greedy public sector workers. We are angry at teachers, government workers and autoworkers for the audacity of negotiating livable wages. (Remember the vitriol that spilled out against average, middle class autoworkers when the government was contemplating bailing out the auto industry? Even bankers didn't feel such rage from the public.) It's open season on teachers and government employees, especially those who are unionized and have been able to ensure a fair wage and benefits and actually live the American dream.
If you think the last three decades have been bad for unions, wait another three months. Across the country governors are trying to strip public employees of collective bargaining rights. John Kasich, the new Republican governor of Ohio, will try to take away a teacher's right to strike. "They've got good jobs, they've got high pay, they get good benefits, a great retirement. What are they striking for?" he said, as reported by the New York Times. To which, one must respond: What's wrong with fighting for high pay, good benefits and a great retirement?
Perhaps Dollar General's 6,000 new hires can take solace in a thin silver lining. At least they know politicians won't use their $20,000 salaries as political piñatas.
The decade just concluded is the first in which Americans, on average, have seen their incomes decline. Median household income increased by about $4,000 per decade in the 1980s and '90s: from $42,429 in 1980 to $46,049 in 1990 to $50,557 in 2000 (in 2007 dollars). In 2009, the most recent year for which we have figures, it had declined to $49,777 - but 2009, of course, was a year of deep recession. If we go back to the peak year of the last decade, 2007, we find that median household income was just $50,233- roughly $300 less than it had been in 2000.
Until the housing and financial bubbles burst, of course, we enjoyed the illusion of prosperity through the days of wine and credit. Now we stand on unfamiliar terrain in which almost all the signs of long-term economic health point downward. Our private sector isn't creating jobs at a rate commensurate with our increasing population, much less at a level to significantly reduce unemployment. The share of our civilian population employed has dropped to 58.2 percent - the lowest level since the early '80s, when far fewer women had entered the workforce.
Those who believe our downturn is cyclical argue that job-creating public spending can restore us to prosperity, while those who believe it's structural - that we have too many carpenters, say, and not enough nurses - believe that we should leave things be while American workers acquire new skills and enter different lines of work. But there's a third way to look at the recession: that it's institutional, that it's the consequence of the decisions by leading banks and corporations to stop investing in the job-creating enterprises that were the key to broadly shared prosperity.
Our multinational companies still invest, of course - just not at home. A study by the Business Roundtable and the U.S. Council Foundation found that the share of the profits of U.S.-based multinationals that came from their foreign affiliates had increased from 17 percent in 1977 and 27 percent in 1994 to 48.6 percent in 2006. As the companies' revenue from abroad has increased, their dependence on American consumers has diminished. The equilibrium among production, wages and purchasing power - the equilibrium that Henry Ford famously recognized when he upped his workers' pay to an unheard-of $5 a day in 1913 so they could afford to buy the cars they made, the equilibrium that became the model for 20th-century American capitalism - has been shattered. Making and selling their goods abroad, U.S. multinationals can slash their workforces and reduce their wages at home while retaining their revenue and increasing their profits. And that's exactly what they've done.
Our economic woes, then, are not simply cyclical or structural. They are also - chiefly - institutional, the consequence of U.S. corporate behavior that has plunged us into a downward cycle of underinvestment, underemployment and under-consumption. Our solutions must be similarly institutional, requiring, for starters, the seating of public and worker representatives on corporate boards. Short of that, there will be no real prospects for reversing America's downward mobility.
Labels: economic death watch, hopelessness, We Are So Screwed
It's not a crime to owe money, and debtors' prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts. In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009, a Star Tribune analysis of state court data has found.
Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals. Consumer attorneys say such arrests are increasing in many states, including Arkansas, Arizona and Washington, driven by a bad economy, high consumer debt and a growing industry that buys bad debts and employs every means available to collect.
Whether a debtor is locked up depends largely on where the person lives, because enforcement is inconsistent from state to state, and even county to county.
In Illinois and southwest Indiana, some judges jail debtors for missing court-ordered debt payments. In extreme cases, people stay in jail until they raise a minimum payment. In January, a judge sentenced a Kenney, Ill., man "to indefinite incarceration" until he came up with $300 toward a lumber yard debt.
[snip]
In Minnesota, judges have issued arrest warrants for people who owe as little as $85 -- less than half the cost of housing an inmate overnight. Debtors targeted for arrest owed a median of $3,512 in 2009, up from $2,201 five years ago.
Those jailed for debts may be the least able to pay.
"It's just one more blow for people who are already struggling," said Beverly Yang, a Land of Lincoln Legal Assistance Foundation staff attorney who has represented three Illinois debtors arrested in the past two months. "They don't like being in court. They don't have cars. And if they had money to pay these collectors, they would."
The laws allowing for the arrest of someone for an unpaid debt are not new.
What is new is the rise of well-funded, aggressive and centralized collection firms, in many cases run by attorneys, that buy up unpaid debt and use the courts to collect.
Labels: debt, Everybody Knows That the Dice Are Loaded, hopelessness
Americans have a more negative view of government today than they did a decade ago, or even a few years ago. Most say it focuses on the wrong things and lack confidence that it can solve big domestic problems; this general anti-Washington sentiment is helping to fuel a potential Republican takeover of Congress next month.
But ask people what they expect the government to do for themselves and their families, and a more complicated picture emerges.
A new study by The Washington Post, the Henry J. Kaiser Family Foundation and Harvard University shows that most Americans who say they want more limited government also call Social Security and Medicare "very important." They want Washington to be involved in schools and to help reduce poverty. Nearly half want the government to maintain a role in regulating health care.
"I think the less the government governs us, the better we do," Norma Osuna, 48, said in a follow-up interview to the survey. A stay-at-home mother, she sees the country as going in a "socialistic" direction.
For Scottie Church, 39, of Winder, Ga., the answer is simple: "It's time to get back to basics. It's time for [the federal government] to get out of the way and let the private sector do its job."
Labels: American Idiots, hopelessness, Teh Stoopid, We Are So Screwed, willful ignorance
Is there a new, bipartisan consensus forming on Capitol Hill about whether (and how) to scale back Social Security benefits? A surprising number of signs point to "yes" -- and that has many progressives looking ahead a few months to what they believe could become a serious fight.
Several of the most powerful members of the House -- Republicans and Democrats -- have recently voiced real support for the idea of raising the retirement age for people middle-aged and younger as part of a larger plan to reduce long-term deficits, inching closer to what not too long ago was the third rail of American politics.
The strongest backer of this plan is House Minority Leader John Boehner, who recently told a Pennsylvania newspaper, "I think raising the retirement age going out 20 years so you're not affecting anyone close to retirement, and eventually getting the retirement age to 70 is a step that needs to be taken."
There's no big surprise there. The Republican minority in the House doesn't have a lot of power, but if Boehner had his druthers, he might well take things quite a bit further. He's the one, after all, who won't take Social Security privatization off the table if Republicans retake the House.
It's the Democrats who have progressives feeling queasy.
House Majority Leader Steny Hoyer explicitly put the idea on the table as well in a speech last month. "We should consider a higher retirement age or one pegged to lifespan," Hoyer said.
He echoed House Majority Whip James Clyburn, who put it this way: "With minor changes to the program such as raising the salary cap and raising the retirement age by one month every year, the program could become solvent for the next 75 years." One month a year may not sound like much, but if you're 30 years away from retirement, that adds up to almost three years.
In the House, though, Nancy Pelosi is the linchpin, and she's not nearly as enthusiastic as her colleagues. But, notwithstanding the enthusiasm gap, she also left the possibility of raising the retirement age on the table. When asked about it by TPMDC at her press conference last week, she criticized the plan, but mainly to say she disagrees with putting Social Security on the chopping block ahead of other measures. "Why they would start talking about a place that could be harmful to our seniors -- 70 is a relative age," Pelosi said. "Around here, there's not a lot of outdoor work or heavy lifting. But for some people it is, and 70 means something different to them. So in any event let's talk about growth, lets talk about how we can reduce spending, lets put everything, those initiatives: promoting growth, tightening the belt, looking at entitlements. But let's not start on the backs of our seniors."
There's one catch, though. Last week, Democrats included a rider to the supplemental war spending bill that will likely force the House to vote on a forthcoming fiscal reform plan, if the Senate passes it first. That package is being put together by President Obama's deficit and debt commission, and will be ready to go after the midterms. Pelosi had already pledged to give the package a vote, so perhaps nothing has really changed. But in a way, she also tied her own hands: if the Senate passes a broad tax-and-entitlement reform package at the end of this Congress and her own caucus is willing, she'll be hard-pressed to stop the Social Security reforms she thinks should come last.
Here is a fact: There. Are. No. Jobs. I'm in Silicon Valley where the official unemployment rate dipped in May to 11.2%. This dip was, of course, because of so many people just giving up trying to get a job, certainly not because of some wave of hiring. The underemployed figure, known as "U-6," is 21.7% in California, 16.7% nationally.You have to know someone to get a humiliating job standing on a corner waving a sign. And if you are over 40, things are even worse than that. Don't give me any conservative Rush Limbaugh-Ayn Rand dehumanizing nonsense about parasitic lazy people who won't look—there are no jobs.
I know so many people here who are over 40, were laid off in the 2000-era dot com crash, still haven't found a regular job and aren't going to. They have had occasional "contract" positions—which means no benefits, no security, a 15% "self-employment" tax and no unemployment check when the job ends. And now, 10 years later they're a lot over 40 and are not going to find a job because so many employers here won't hire people over 40.
And now there are so many more who lost their jobs in the mass layoffs of 2008-2009 and can't find a job. So many of them are also over 40. In fact, many were laid off in obvious purges of over-40 workers, offered a small severance that they could only receive if they promised to take no age-discrimination action against the employer. (I don't say "company" because some of these worked at nonprofits.)
Most of these people will not find another job, but are too young for Medicare and Social Security.One Person's Story
I ran into a friend this weekend who I hadn't seen for a couple of years. He had been a computer engineer who had been making 6 figures in the dot-com years. Laid off in the 2000 crash, he moved in with his parents back in the Midwest and worked in a bakery. He came back out here when things picked up a bit and worked in one "contract" job after another. (Contracting is just a scam to get around employment laws—but the government doesn't enforce the rules.) But now he just can't find anything. He managed to get unemployment but now that is running out. He has no health insurance. He can't afford a place to live; he "house sits" for people or visits friends, and doesn't know what he is going to do even two days from now.
What is he going to do? Can you tell me? He has gotten a few interviews, and when they are computer-related is always told he is way overqualified, doesn't seem energetic, probably won't be willing to work 20 hours a day, doesn't look like he is up to date on things that are happening with computers, etc. (How many ways can you say "too old?") He's about 45. If things pick up he will get another job. But people just a few years older will not.
I'm 56, and trying to find work OUT of the Los Angeles area. I'd like to move to Kentucky, where my fiancee is.
Nothing.
Nada.
Not so much as a call back, and I've got 30 years of experience in copy editing, publication design, advertising design and speaking/presentation training. I've been doing web design since '94, when we had to optimize everything for dial-up modems.
I'm "too old".
I -was- told plainly by one recruiter that his employer client wouldn't consider me because health insurance for me would be too expensive, Fred. It seems experience and talent are no longer valued.
I live in Missouri and lost my 13 year job with a municipality 16 months ago because of a political turnover. Previous to this position, I was with another municipality for 18 years. Management in both positions, first as Finance, then in Human Resources. I am 56, with a Master's Degree and 31 years of municipal management experience. And - I can't get a job, to save my soul - or my house! I am either under-qualified or over-qualified or just plain don't even warrant a response at all!
If I get a response to an application or resume at all, it is that they received many applications from highly qualified people and I am not being considered. A recent submission was to a City almost the same size and budget as my previous position, doing exactly what I had been doing, and I wasn't highly qualified enough to even get an interview. Give me a break!
I lost my computer programming job in February this year.
It was nothing more than simply not having the new skill set the company required and feeling that with my workload the company would look askance at doing any on the job training. So I'm out of work and most likely out of luck.
I've had one interview since then with a local company who stated that they wanted someone who could do the work immediately without further training and who would be around for the long term. This from a company that was looking for a programmer after laying off people due to the bad economy.
I have been unemployed since 2008. I have fought to keep my home and pay the bills. I look for jobs 10 hours daily. I have filled out applications that ask if you’re under 40 or over 40. I didn’t know that was a legal question to ask. I am over 40 and I believe that is one of the reasons I do not have a job offer. I have had few interviews with one call back to say I did not get the job and another said I had the job but when I called back to inquire about my application; He said they filled the position from within the company. I cannot believe this! Where am I to go? If I cannot pay the mortgage, no home, cannot pay the phone bill, no phone, cannot pay the internet, no internet. I am at an all time low. I have always worked; you do not know how this makes me feel that I cannot support my family. How would you feel if you had to face your family with no job? I am trying but that is not good enough!
I have been unemployed since Feb. 2009. It is now July 2010. I live in Highland Co., Ohio. It now has the 2nd highest unemployment rate in the state. When DHL in Clinton Co. went out of business, half of the people in Highland Co were also thrown out of work. So how can you find a job with that many people out of work. When one job opened up at a factory , 3000 people applied to it!!!! How to you compete with that many people hunting for work. All I want is to keep a roof over my head and buy groceries. There are no JOBS in my area. The stimulus that was for creating jobs has only helped those that do road work. Great for them, but what about me? I got laid off from a BANK. How ironic that is.
After working for eight and a half years at IBM, Nancy Ikeda, 55, lost her job 13 months ago. She had lived in Binghamton, N.Y., since her daughters were in high school, but after spending most of the year looking in vain for another job, Ikeda decided she couldn’t stay any longer.
[snip]
Unskilled workers undoubtedly have the hardest time finding jobs today: many of the manufacturing jobs that fueled the engine of prosperity in the decades following World War II no longer exist in the U.S.: they have moved to Asia and Latin America. Unions have grown weaker and so are no longer able to protect workers as they once did. The corporate focus on the bottom line mandates efficiency at the expense of workers: whenever possible, expensive manpower is replaced by machinery, and even white-collar work is moved overseas, where wages are lower. In the past decade alone, 5.6 million manufacturing jobs have been lost to automation, Goodman reports.
But Ikeda has an M.B.A. “You’d think I’d be employable,” she says.
You’d think—but Ikeda belongs to the cohort of women 45 to 64 years old, and they have been hit particularly hard in this recession.
Members of Congress are not eligible for a pension until they reach the age of 50, but only if they've completed 20 years of service. Members are eligible at any age after completing 25 years of service or after they reach the age of 62. Please also note that Members of Congress have to serve at least 5 years to even receive a pension.
The amount of a congressperson's pension depends on the years of service and the average of the highest 3 years of his or her salary. By law, the starting amount of a Member's retirement annuity may not exceed 80% of his or her final salary.
According to the Congressional Research Service, 413 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service as of Oct. 1, 2006. Of this number, 290 had retired under CSRS and were receiving an average annual pension of $60,972. A total of 123 Members had retired with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $35,952 in 2006.
Under the Former Presidents Act, each former president is paid a lifetime, taxable pension that is equal to the annual rate of basic pay for the head of an executive federal department -- $193,400 in 2009 – the same annual salary paid to secretaries of the Cabinet agencies.
Each former president and vice president may also take advantage of funds allocated by Congress to help facilitate their transition to private life. These funds are used to provide suitable office space, staff compensation, communications services, and printing and postage associated with the transition.
Labels: Democratic sellouts, futility, greed, hopelessness, social Darwinism, Social Security
In case you were wondering, the consensus on all the Sunday gasbag shows is that Obama is an abject failure because of his radical leftist ideology and that his only hope of even maintaining the presidency, much less winning a second term is to take a sharp turn to the right and enact the Republican agenda. Several commentators, including such luminaries as political cross dresser Matthew Dowd on ABC, insisted that the first thing the president has to do is pick a huge fight with the Democrats to show the country that he isn't one of them. Cokie said he should have asked John McCain from the beginning what he was allowed to do.
The historians and expert political observers on Fareed Zakaria's CNN show all agreed that Obama is no Reagan, a president who never governed ideologically and always worked across party lines. Oh, and he needs to be a president or a prime minister, but nobody could agree on exactly what that means except that he should try to be more like Scott Brown, the white Barack Obama, except without all the liberalism.
Oddly, the Republicans weren't mentioned, although Robert Caro did note that Obama inherited something of a mess. Peggy Noonan said he ran to win not to govern and they all agreed that was a brilliant observation. Zakaria did point out that Obama had a higher approval rating at this stage than both Reagan and Clinton and that the two Bush's were higher at this point because of wars and they all stared for a moment and then went on about centrism and prime ministers again.
The Village has officially turned. I'm guessing they'll be calling for his resignation by July.
Labels: American Idiots, hack journalism, hopelessness, We Are So Screwed
Labels: American Idiots, hopelessness, Republican lies, Rudy Giuliani
The public option in the Senate bill, it should be emphasized, is a compromise of a compromise already. The first compromise was to have the public plan negotiate its rates directly with providers, rather than set them based on Medicare’s rates. This compromise meant that the Congressional Budget Office was unlikely to score the public plan as producing the huge savings that it projected for a plan that used Medicare-based rates. Whether CBO was right in discounting the negotiated-rate plan’s savings is another matter--as I have written on this site, it’s likely underestimating the cost-containment potential--but the CBO’s numbers rule on Capitol Hill.
The second compromise was to allow states that did not want to have the public plan operating within their borders to “opt out” with the passage of a state law. How many states will take advantage of this option is unclear, but it’s certain to reduce the impact of the public plan even further. Indeed, the CBO is now projecting—again, pessimistically in my view--that only a few million Americans will enroll in the public plan. Yet none of this has apparently appeased the handful of hold-outs. Emboldened by the White House’s lack of clarity and pressure on the issue, they are digging in their heels and spewing false claims about the public plan (for example, that it’s a budget buster when there are no special government subsidies for it and the CBO projects it will exert downward pressure on private premiums, thus lowering the price tag of reform). Hence the new push to find some kind of middle road.
The problem is that the “middle-ground” ideas that are currently flying around aren’t in the middle at all.
[snip]
In short, the new compromise proposals are anything but. They represent calls for advocates of the public plan to eat their crumbs and be happy. But a majority of Senators support the public plan. At least two--Senator Bernie Sanders, an independent from Vermont and Senator Burris of Illinois--have said having a real public plan in the legislation is a precondition for their support. Those who believe in the public plan—and, more important, who believe in the principle it embodies: that no American who lacks access to good insurance should be forced to buy coverage from the private plans that got us into our present mess--should stand firm in the face of these non-compromises.
This includes President Obama. He made the public plan part of his promise of change in 2008. Now he needs to put his weight and influence behind the public plan and its essential goals, rather than allow them to be gutted. This is in our nation’s interest. It is also in his and his party’s political interest. A bill that forces people to take private insurance but doesn’t create competition or a public benchmark is a prescription for unaffordable coverage, runaway costs, and political backlash. The “middle ground” is nowhere to stand if it’s going to crumble beneath you.
Labels: Barack Obama, despair, health care, hopelessness
SC man died hungry, solo in tent, baffling friendsThe people calling themselves Condon's "friends," he probably - & more accurately - considered "acquaintances." His disappearance alarmed no one enough to go looking for him. They ought to ask themselves exactly what they could have & would have done for the man. Passed the hat? Treated him to lunch at Burger King? Stored his possessions for him when he was evicted? Suggested he work part-time at Walmart so he could make his car payments & sleep in the backseat? Urged him to seek more help from government & nonprofit agencies? Condon knew he was up shit creek without a paddle, putting up a false front for as long as he could, then withdrawing into his humiliation & sparing others his personal misery. They ought to thank him for not interrupting their backgammon to beg for spare change.
ANDERSON, S.C. — Friends of a 39-year-old South Carolina man are trying to figure out why he never reached out for help before dying broke and alone in a zipped-up tent on the banks of a lake.
Bright but reclusive Civil War buff David Condon lost his job at a local museum and fell behind on his rent.
Sometime in early July he disappeared. On Labor Day weekend, a group of college kids vacationing at a condo complex a few hundred yards from his tent peeked inside and found his body. The local coroner says he died of pneumonia, made worse by malnutrition. He was dehydrated and had lost 50 pounds in a few months.
His best friend, Craig Drennon, saw no sign Condon was having money problems or spiraling into despair when the two got together nearly every week to drink beers and play backgammon.
Labels: america R.I.P., casualties of conservative "values", hopelessness, poverty, unemployment
Let’s lay out the basics here. Other things equal, public investment is a much better way to provide economic stimulus than tax cuts, for two reasons. First, if the government spends money, that money is spent, helping support demand, whereas tax cuts may be largely saved. So public investment offers more bang for the buck. Second, public investment leaves something of value behind when the stimulus is over.
That said, there’s a problem with a public-investment-only stimulus plan, namely timing. We need stimulus fast, and there’s a limited supply of “shovel-ready” projects that can be started soon enough to deliver an economic boost any time soon. You can bulk up stimulus through other forms of spending, mainly aid to Americans in distress — unemployment benefits, food stamps, etc.. And you can also provide aid to state and local governments so that they don’t have to cut spending — avoiding anti-stimulus is a fast way to achieve net stimulus. But everything I’ve heard says that even with all these things it’s hard to come up with enough spending to provide all the aid the economy needs in 2009.
What this says is that there’s a reasonable economic case for including a significant amount of tax cuts in the package, mainly in year one.
But the numbers being reported — 40 percent of the whole, two-year plan — sound high. And all the news reports say that the high tax-cut share is intended to assuage Republicans; what this presumably means is that this was the message the off-the-record Obamanauts were told to convey.
And that’s bad news.
Look, Republicans are not going to come on board. Make 40% of the package tax cuts, they’ll demand 100%. Then they’ll start the thing about how you can’t cut taxes on people who don’t pay taxes (with only income taxes counting, of course) and demand that the plan focus on the affluent. Then they’ll demand cuts in corporate taxes. And Mitch McConnell is already saying that state and local governments should get loans, not aid — which would undermine that part of the plan, too.
OK, maybe this is just a head fake from the Obama people — they think they can win the PR battle by making bipartisan noises, then accusing the GOP of being obstructionist. But I’m really worried that they’re sending off signals of weakness right from the beginning, and that they’re just going to embolden the opposition.
First, there seems to be a decent consensus that the tax rebates from last year had little stimulative effect on the economy. So while it's a good thing for families on the margin to get another $500 or $1,000, it's not clear how much bang for the buck you'll get for the money spent in terms of creating demand/consumer spending in the economy.
Second, the amount of the bill that comes in tax cuts leaves the spending side of the bill really small -- judged by the standards of what most economists seem to think is necessary, like $400 billion over two years. So it's not just the logic of the tax cuts on their own merits but the degree they're beggaring the spending side of the ledger. (A lot of this just comes down to whether or not you buy into the Keynesian premise of the whole exercise, of course. But let me note for the record that there does seem to be a decent rationale for significant tax cuts in year one of the bill, since you need to get money into the economy rapidly and there may not be enough projects that can be started quickly. That leaves the question of why so much of it is also included in year two. I fear that may be the 'tell'.)
Third, and in some ways this is the most troubling. It would be far better on many counts to bring in substantial Republican support for this bill. And I don't just mean that in the BS sense in which President Bush usually meant it, which was to say essentially, 'Of course we'd like you to vote for exactly what we want. More the merrier. But if you don't want to vote for our ideal bill, tough luck.' No, I think there's a real logic in not going the 51 votes model President Bush followed. But Obama seems to be telegraphing that to a significant degree the fundamental structure of the legislation is being built around accommodating the concerns of Republicans -- members of a political party that are about as unpopular and weak as you can get at the moment. And that sounds a lot like he's negotiating with himself, something that will embolden opposition and invite Republicans to up the ante even further.
Labels: Democratic sellouts, despair, hopelessness, President Barack Obama
MR. BROKAW: Four years ago I interviewed President Bush at a time when it looked like he may be in trouble against John Kerry, final weekend of the campaign. I showed him a map. He said, "Oh, I just don't do that. Karl Rove does that." As soon as the interview was over, he said, "I'll win here," and pointed to southeastern Ohio. Where will you win if you win?
"In order for McCain to win, he's got a very steep hill to climb. He's got to win all of the toss-up states. ... Then he needs to strip away Ohio and Indiana. ... And then he needs to either win Colorado and Virginia ... or win one of them plus Pennsylvania. ... It's a steep uphill climb."
Labels: 2008 election, hopelessness, tinfoil

Labels: cynicism, fascism, hopelessness, spinelessness
