Tag Archives: The Economy

April 2, 2011 · 5:21 pm

The End of Compassionate Conservatism

The House Republicans have done the almost impossible:  Made George W Bush look good compared to themselves…

Most Progressives, like me, always thought the concept of Compassionate Conservatives was Public Relations BS.  And it was…

But we obviously had not anticipated this heartless bunch of new GOP House members…

And of course the Democrats don’t now how to fight this- either in Congress or with a coherent message strategy.

The good news is I think the GOP over reach will eventually be their undoing.  At least for a while…

We will just have to hope they don’t kill too many people in the meantime….

From the New Republic:

House Republicans want to cut funding for health programs abroad and for community clinics here at home. And although the projected savings are small, at least relative to the size of the federal budget, the philosophical shift they signal is big. This is the end of compassionate conservatism.

You remember compassionate conservatism, don’t you? It was George W. Bush’s slogan, going back to the late 1990s, when, as a candidate, he told audiences that “Prosperity without purpose is just materialism” and vowed to “rally the armies of compassion in our communities to fight a very different war against poverty.”

Cynics saw it as empty rhetoric or, worse, a deliberate distraction from policies that were actually quite harsh to the nation’s least fortunate. The cynics had a pretty good point. Bush raided the treasury, in order to give wealthy people huge tax cuts, and the resulting budget crunch has forced all sorts of cuts to vital programs over the years.

Still, Bush never gave up the rhetoric of compassion. And on at least a few occasions he lived up to it. Community clinics were one example: As president, he doubled their funding. According to an account by Kevin Sack in the New York Times, that led to the creation or expansion of more than 1,200 clinics around the country. “This is a really good use of the taxpayers’ money,” Bush said at the time, noting that good primary care helps keep people out of the emergency room

AND

Today, by contrast, Republican leaders are perfectly content to walk away from these programs and many others without so much as acknowledging the consequences, let alone addressing them. Poor people in the U.S. might not be able to get basic medical care? Victims of HIV abroad might lose their life-sustaining drugs? If Republicans have paused even a moment to think about these things, they sure haven’t shown it.

 

via House Republicans Turn Out The Lights On President Bush’s Compassionate Conservatism | The New Republic.

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April 2, 2011 · 5:07 pm

CEO Pay Soars While Workers’ Pay Stalls

The heads of the nation’s top companies got the biggest raises in recent memory last year after taking a hiatus during the recession.

Is anyone surprised anymore?

From USA Today:

At a time most employees can barely remember their last substantial raise, median CEO pay jumped 27% in 2010 as the executives’ compensation started working its way back to prerecession levels, a USA TODAY analysis of data from GovernanceMetrics International found. Workers in private industry, meanwhile, saw their compensation grow just 2.1% in the 12 months ended December 2010, says the Bureau of Labor Statistics.

Two years of scaling back amid tough economic times proved temporary as three-quarters of CEOs got raises in 2010 — and, in many cases, the increases were substantial.

The sizable pay hikes came even though the economy’s recovery remains frail, unemployment is high and corporate profits last year were roughly flat, up 1.5%, from where they were in 2007 when the stock market peaked.

Says Kevin Murphy, professor of finance at the University of Southern California, “We have the recipe for controversy over CEO pay: big increases in CEO pay that show up following run-ups in stock prices coupled with high unemployment rates.”

via CEO pay soars while workers’ pay stalls – USATODAY.com.

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April 1, 2011 · 8:29 am

Wall Street and the Public

Have we really learned anything?

Interesting article from Kevin Drum at Mother Jones about the new push to relax the weak financial reform rules that passed last year…

This is a response to comments from Jamie Dimon, CEO of JP Morgan/Chase and comments from Matt Yglesias in the Financial Times:

So Dimon doesn’t like higher capital rules, doesn’t like derivatives regulation, doesn’t like debit card rules, and we already know what the entire industry thinks of the new Consumer Finance Protection Bureau. Long story short, he doesn’t really think the financial industry needs any new regulations at all, thankyouverymuch.

Well, if I were him I suppose I wouldn’t think so either. But guess what? It’s only been two years since the Great Collapse, and finance industry profits have already rebounded to their bubble-era levels. That’s a strong sign that finance industry leverage is also returning to its bubble-era levels, which in turn means the industry is about as dangerous as it’s ever been. And Dodd-Frank is a notably weak piece of regulation, about as weak as any bill could be and still be called regulatory reform in the first place. Wall Street got off easy, and Dimon knows it.

AND

Years ago I remember a lot of moderate liberals talking about how the Bush era radicalized them. For me, it was the economic collapse of 2008 that did it. The financial industry almost literally came within a hair’s breadth of destroying the world, but even so it took only a few short months for them to close ranks with Republicans and the rich to prevent anything serious being done to rein them in. Profits are back up, new regulations are barely more than window dressing, nothing was done to help underwater homeowners, bonuses are as obscene as ever, unemployment remains sky high, and the public has somehow been convinced that this was all their own fault — or perhaps the fault of big government, or big deficits, or something. But the finance industry has escaped almost entirely unscathed. It’s mind boggling. If this doesn’t change your view of who really runs the world, I don’t know what would.

via Wall Street and the Public | Mother Jones.

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March 31, 2011 · 7:57 pm

USAID Administrator: GOP Budget Cuts Would Lead To The Deaths Of 70,000 Children Globally

Heartless…

From ThinkProgress.com:

As Foreign Policy’s Josh Rogin notes, one moment of the hearing provided a particularly startling fact about H.R. 1, the House Republicans’ bill for continuing appropriations to fund the government. USAID administrator Rajiv Shah explained to Rep. Charlie Dent (R-PA) that the agency was committed to its mission of battling global poverty, but that H.R. 1 would severely gut its ability to battle easily preventable deaths among children — and even lead to the deaths of as many as 70,000 kids globally. Dent, apparently unmoved by Shah’s testimony, immediately asked to change the subject:

SHAH: We estimate, and I believe these are very conservative estimates, that H.R. 1 would lead to 70,000 kids dying. Of that 70,000, 30,000 would come from malarian control programs that would have to be scaled back, specifically. The other 40,000 is broken out as 24,000 who would die because of a lack of support for immunizations and other investments, and 16,000 would be because of the lack of skilled attendants at birth. […] There’s a way to do this that doesn’t have to cost lives. […]

DENT: Can I just quickly change subjects?

via ThinkProgress » USAID Administrator: GOP Budget Cuts Would Lead To The Deaths Of 70,000 Children Globally.

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March 31, 2011 · 6:34 pm

Of the 1%, by the 1%, for the 1%

This is one of the clearest explanations of the income and wealth disparity in American I have read.

It’s written by Joseph Stiglitz, Nobel Prize Winner in Economics and former Chairman of the Council of Economic Advisors for Bill Clinton…

There is so much here I want to share that I think the best I can do is ask you to click the link at the bottom of this post and read it for yourself.

It’s really worth your time to read this entire article from Vanity Fair.  It’s not too long….

It’s no use pretending that what has obviously happened has not in fact happened. The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.

via Of the 1%, by the 1%, for the 1% | Society | Vanity Fair.

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March 30, 2011 · 7:05 pm

Freshman GOP Congressman Duffy Complains About His Congressional Salary…

Poor guy…

Just can’t scrape by on $174,000 a year…

Like I’ve repeatedly said, these guys in Washington live in a different world…

Duffy was asked about his pay by a constituent who said he had taken a job as a bus driver when his work as a builder dried up, and that his wife – a schoolteacher – would be taking a pay cut under the state’s new budget plan.

“I have six children and I’ve gone for roughly seven months with six kids and no paycheck,” Duffy replied, referring to the period when he left his job as Ashland County district attorney during the 2010 election campaign. “It was worth it for me to do that. I believed in what I was doing.”

Duffy told listeners he had cut his congressional office budget and didn’t vote on his own salary — “I got there on Jan. 5” — and that his federal health care and pension benefits are not nearly as good as they were when he worked for the state of Wisconsin. He described state benefits as “gold-plated.”

“The benefits that were offered to me as a congressman don’t even compare to the benefits that you get as a state employee. I just experienced that myself. They’re not nearly as good,” said Duffy.

“But $174,000 — that’s … three times what I make,” said the constituent. Someone else at the listening session asked if Duffy would vote to cut his salary, according to a recording of the event.

“I have no problem (with that). Let’s have a movement afoot. I walked into the job six weeks ago … And I can guarantee you, or most of you — I guarantee that I have more debt than all of you. With six kids. I still pay off my student loans. I still pay my mortgage. I generally use a minivan … I’ve got one paycheck. So I struggle to meet my bills right now. Would it be easier for me if I get more paychecks? Maybe, but at this point I’m not living high on the hog,” said Duffy. “Can everyone do more with less? Absolutely.”

Democrats accused Duffy of griping about his salary. State Democratic chair Mike Tate said in a statement, “Poor Hollywood Sean Duffy. He only makes four times the median family income in Wisconsin.”

via House freshman Duffy tells constituents “he’s not living high on the hog” on congressional pay – JSOnline.

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March 29, 2011 · 7:02 pm

Democrats offer Boehner a lifeline to avoid tea party-forced shutdown

This is the most succinct summary of what’s going on regarding the budget I’ve seen…

The question is:  Is the Republican Leadership ready to act like adults and make a deal or are they going to play to their loud, angry and ignorant base…

I still fear most of these cuts are going to hurt the economy in the long run.

It can’t be said often enough:  You do not drastically cut the budget when the recovery is this fragile.  You need to focus on growing jobs…

Ask Herbert Hoover’s ghost- or FDR’s….

From DailyKos:

To recap, the issue here is that tea party Republicans in the House have made it clear they will not support any funding bill that does not include provisions such as a repeal of the health care reform law and a ban on family planning funding. Obviously, those are poison pill provisions; the Senate wouldn’t pass them, and even if it did, President Obama wouldn’t sign them into law.

Because the most recent stop-gap funding measure, which will keep government open until April 8, did not include those provisions, 54 tea-party Republicans voted against it in the House, forcing the GOP to rely on Democratic votes to prevent a government shutdown. (They needed 32, but got 85.)

Unless tea-party Republicans flip-flop, John Boehner is going to need Democratic votes to pass a funding bill that can pass the Senate and get President Obama’s signature, and Hoyer’s comments were designed to make it clear to Boehner that Democrats are ready and willing to achieve a bipartisan compromise to keep the country moving forward.

Boehner is facing enormous pressure from his party’s right-flank to refuse the Democratic offer for cooperation, even though that would force a government shutdown. Polls show that tea-party supporters are losing confidence in Congressional Republicans on budget issues and by significant margins favor a government shutdown. But while a majority of Boehner’s political base says they favor shutting down government for several weeks, nearly three-quarters of Americans say such a shutdown would be a bad thing.

So John Boehner needs to choose between satisfying his the extreme right of his party, or forging a compromise with Democrats to move forward. The choice is his. Whether or not we have a government shutdown is entirely up to him.

via Daily Kos: Democrats offer Boehner a lifeline to avoid tea party-forced shutdown.

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March 29, 2011 · 6:43 pm

GE Pays No Incomes Taxes and Now Wants Workers to Make Concessions | AlterNet

Amazing…

It seems there is no sense of shame anymore…

And why should there be when no one holds anyone accountable?

This has all crossed from the absurd to the unbelievable…

The message coming from Washington can’t be taken any other way than that Corporations are not only “people”, they are more important than most people….

And this is barely being reported on MSNBC or NBC– because GE owns them…

You’ve likely already read Lauren Kelley’s piece from last week about how GE is milking the system like you’ve never seen before. The company made $14.2 billion, $5.1 billion of which came from the US, but, through some creative bookkeeping, GE paid no US taxes. That’s right, none. And to make matters worse they actually claimed a $3.2 billion tax benefit. So, that means we owed them money!

Can this story get any worse?

Apparently, yes. Mike Elk reports, “After not paying any taxes and making huge profits, ThinkProgress has learned that General Electric is expected to ask its nearly 15,000 unionized employees in the United States to make major concessions.”

via GE Pays No Incomes Taxes and Now Wants Workers to Make Concessions | AlterNet.

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March 29, 2011 · 6:36 pm

The Real Story of Our Economy: Why Our Standard of Living Has Stalled Out | | AlterNet

These facts cannot be repeated often enough…

Especially since the Corporate media chooses to ignore them…

The average real wage of the non-supervisory production workers (which comprise 82.4 percent of total private non-farm employees) actually declined by 9 percent between 1975 and 2010.

Meanwhile the top 1 percent saw their share of national income rise from 8 percent in 1975 to 23.5 percent in 2005

More amazing still, the wage gap between the top 100 CEOs and the average worker jumped from $45 to $1 in 1970 to an unbelievable $1,723 to $1 in 2006

Today after the crash, financial incomes are so enormous that in 2010, John Paulson, the top hedge fund manager, earned $2.4 million an HOUR (not a misprint), and his tax rate is less than yours

via The Real Story of Our Economy: Why Our Standard of Living Has Stalled Out | | AlterNet.

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March 29, 2011 · 6:33 pm

Cost shift seen in raising Medicare age to 67 – Yahoo! Finance

There are some interesting facts here…

If Congress raises the Medicare age, it would reduce government expenses, but cause each individual- including the young- to pay much more for health insurance.

I guess this is what the Republicans really mean by “trickle down” economics.

It’s worth clicking the link to read the detailed article…

Employers and even some younger people would pay more for health insurance if lawmakers raise the eligibility age for Medicare, a study to be released Tuesday concludes.

The findings suggest that the emerging debate over Medicare’s future matters not only to seniors and those nearing retirement, but to a broad cross-section of Americans.

The report from the nonpartisan Kaiser Family Foundation shows that federal taxpayers would save billions if the Medicare eligibility age, currently 65, is increased by two years. But people ages 65 and 66, employers — along with states, Medicare recipients and even some younger families — would see ripple effects that add to their costs.

Those costs could total more than $2,000 a year for some individuals.

via Cost shift seen in raising Medicare age to 67 – Yahoo! Finance.

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