Hello my fellow Kossacks !
I hope that you are well.
Like many of you, I am frustrated by an economy that stinks.
I am underemployed/unemployed. So, I am not talking about somebody
else's problem.
More below the fold:
Previously, I had thought that the economic growth would be stronger this Fall than it looks like it will be. Companies are able to increase their production without hiring more workers and that is what they are doing. That will hurt us this Fall in the midterm elections. However, NPR suggests that economists expect stronger growth next year.
Most economists still believe the odds of a double-dip recession are slim, and that growth will continue but will be tepid until next year, when it should pick up — somewhat.
In July, we lost 131,000 jobs and increased jobless claims but decreased in the number of people receiving unemployment benefits. The job losses can be attributed to the end of the temporary census bureau workers. However, we still would only have gained a very meager 12,000 jobs had their positions been permanent.
All of us who are struggling and others who care about their fellow countrypeople who are struggling want to know what the President is doing to fix the situation. I would have preferred a bigger stimulus package and one which included fewer tax cuts and more investment in infrastructure... Still, the Republican opposition to extending unemployment benefits shows the difficulty that the President would face in a second or larger stimulus package.
The 272-152 House vote came less than 24 hours after a mostly party-line Senate vote Wednesday on the measure, which is just one piece of a larger Democratic jobs agenda that has otherwise mostly collapsed after months of battles with Republicans.But GOP opposition forced Democrats to drop $24 billion to help state governments avoid layoffs and higher taxes, as well as a package of expired tax cuts and a health insurance subsidy for the unemployed. Opposition marked a change of heart for many Republicans who had voted for deficit-financed unemployment benefits in the past, including twice during George W. Bush's administration. Earlier this year, Republicans twice allowed temporary unemployment measures to pass without asking for a roll call vote.
Opinion polls show that deficits and debt are of increasing concern to voters, especially Republicans' core conservative supporters and the tea party activists whose support the GOP is courting in hopes of retaking control of Congress.
Republicans winced in February when Sen. Jim Bunning (R-KY), blocked a temporary benefits measure for several days, only to relent amid a wave of bad publicity. But just a few weeks later, all but a handful of Republicans were opposed to renewing benefits unless they were paid for with cuts elsewhere in the $3.7 trillion federal budget.
Clearly, this is a political win :
"They've finally decided to make their stand on the backs of the unemployed," Obama said. "They've got no problem spending money on tax breaks for folks at the top, but they object to helping folks laid off in this recession."
But conservatives dispute that and say unemployment benefits discourage people from finding jobs. "I haven't met any Americans who would rather have an unemployment check than a meaningful job," Obama said.
Political analyst Norman Ornstein of the American Enterprise Institute notes that Obama ran for the presidency promising to rise above partisan bickering. But blasting the Republicans over jobless benefits is a "slam dunk. ... The public clearly sees jobs, the lack of them and the problems for people who don't have them as the issue at the top of their list. The Republicans have taken a gamble here in filibustering and holding their troops together."
If his economists expected that serious job creation would be taking place by now as a result of the stimulus, it is clear that they were wrong. Perhaps there will be significant job creation next year that is directly due to the stimulus. We can also argue that President Obama and his team should be fighting for another stimulus. After all, President Bush had several stimulus bills.
During his first term (2001–2004), he sought and obtained Congressional approval for tax cuts: the Economic Growth and Tax Relief Reconciliation Act of 2001, the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. These acts decreased all tax rates, reduced the capital gains tax, increased the child tax credit and eliminated the so-called "marriage penalty", and are set to expire in 2011.
Even if he did not get the votes, it seems that it would be worth a legislative loss which could also become a political victory (Republican obstruction of economic assistance would not play well with the electorate if the economy continues to limp along). There is, therefore, in my viewpoint some culpability that belongs to the President. Budget bills come from the President and only require 51 votes in the Senate (or 50 + Biden).
Having said all that, the President is working hard to turn the economy around. He helped bring an end to the recession. And if next year's projected economic job growth comes to fruition, then we will have simply experienced delayed gratification. The job growth will not have taken place as quickly as we would like. Part of the reason is an economy of thrift. Another reason for that is, again, companies are able to increase their production without hiring more workers (up to a certain point). We must address this reality in our economy so that stimulus money efficiently creates many more jobs. The President understands this.
So, what has the President been up to on the economy ? Some that we remember:
American Recovery and Reinvestment Act which has saved or created 3 million jobs.
Payroll tax credit for companies adding employees.
Wall Street Reform.
Making home affordable - fighting foreclosures.
Okay, that's well and good, but what have you done for me lately ?
So that’s why I’m pleased today to sign into law a bill that will strengthen American manufacturing and American jobs. And as I do, I’m joined by two members of my economic team -- Secretary of Commerce Gary Locke, who’s been a tireless advocate for America’s manufacturers; and Ambassador Ron Kirk, who’s been doing a great job and putting in a lot of miles as our U.S. Trade Representative.Now, some suggest this decline is inevitable, that the only way for America to get ahead is to leave manufacturing communities and their workers behind. I do not see it that way. The answer isn’t to stop building things, to stop making things; the answer is to build things better, make things better, right here in the United States. We will rebuild this economy stronger than before and at its heart will be three powerful words: Made in America.
For too long, we’ve been buying too much from the rest of the world, when we should be selling more to the rest of the world. That’s why, in my State of the Union address, I set an ambitious goal for this country. Over the next five years, we are going to double our exports of goods and services, an increase that will grow our economy and support millions of American jobs.
The Manufacturing Enhancement Act of 2010 will create jobs, help American companies compete, and strengthen manufacturing as a key driver of our economic recovery. And here’s how it works. To make their products, manufacturers -- some of whom are represented here today -- often have to import certain materials from other countries and pay tariffs on those materials. This legislation will reduce or eliminate some of those tariffs, which will significantly lower costs for American companies across the manufacturing landscape -– from cars to chemicals; medical devices to sporting goods.
The extraordinary growth we’ve seen in the clean energy sector is due first and foremost to the entrepreneurial drive of our businesses and our workers. But it’s also due to the fact that we invested in them. One of these investments came in the form of clean energy manufacturing tax credits. What we said to clean energy firms was, if you’re willing to put up 70 percent of the capital for a worthy endeavor, we’ll put up the other 30 percent. That means that for every dollar we invest, we leverage more than two private sector dollars.
Here is a goody from Jared Bernstein about Rep Boehner's recent claims:
Boehner claimed the administration needed to give:
"...an explanation of how raising taxes on small businesses will do anything but further hinder job creation in Ohio and across the country."
That sounds great, but Bernstein made clear what Boehner was really talking about:
He and his team want to extend the Bush tax cuts for the wealthiest households, and they’re trying to do so under the guise of helping small business.
This is clear because of their opposition to bills that allowed small businesses to zero out capital gains taxes, among other things.
However, Bernstein notes:
Virtually every small business would benefit from President Obama’s plan to preserve the tax cuts for families with incomes below $250,000. Only three percent of filers report small business income above that level, and they’re mostly high-end professionals like someone with a small legal practice—perfectly worthy business folks, of course, but not the small entrepreneurs we’re trying to reach with the plans the Republicans continue to block.
Check out this graphic to see for yourself who benefits from the tax cut Rep. Boehner is advocating. Compared to what the President wants to do, it delivers less to the middle class, and, at the expense of adding billions to the deficit, massively delivers to millionaires.
Finally, for teachers, the President came to my neck of the woods, Austin, Texas, and spoke about education.
Some of what the President had to say :
It’s an economic issue when the unemployment rate for folks who’ve never gone to college is almost double what it is for those who have gone to college. Education is an economic issue when nearly eight in 10 new jobs will require workforce training or a higher education by the end of this decade. Education is an economic issue when we know beyond a shadow of a doubt that countries that out-educate us today, they will out-compete us tomorrow.
He spoke about Pell Grants, which so many students have come to rely on:
We’re tripling how much we’re investing in the largest college tax credit for our middle-class families. And thanks to Austin’s own Lloyd Doggett that tax credit is now worth $2,500 a year for two years of college. And we want to make it permanent so it’s worth $10,000 over four years of college -- $10,000.
Over a third of America’s college students and over half of our minority students don’t earn a degree, even after six years. So we don’t just need to open the doors of college to more Americans; we need to make sure they stick with it through graduation. That is critical.
Here is what this legislation is about :
The legislation signed by the President today marks an investment in our economic prosperity and in our children’s future. Without it, the loss of thousands of jobs by teachers and other education personnel would have rippled through the larger economy and undercut the nation’s recovery.
Today’s legislation responds directly to that problem. It lets America’s parents, students, and teachers know that help is on the way. And it delivers hope that they’ll begin a successful and productive year when they return to school this fall.
Teacher Jobs Potentially Saved by the Education Jobs and Medicaid Assistance Act by State:
In Texas: 14,500 !
I had 4 interviews for high school math teaching positions with Killeen ISD this past week (2 on Monday and 2 on Tuesday). So, this affects me in a very personal way.
I hope to receive a job offer Monday. Keep your fingers crossed.
Republican hypocrisy is very great :
Republicans in Congress are arguing that we have no choice but to extend the Bush tax cuts for the wealthiest, despite the fact that extension would cost upwards of 700 billion for ten years and the nonpartisan Congressional Budget Office makes clear that tax cuts for the wealthiest rank at the bottom of the list of best ways to stimulate the economy.
Let’s not forget that this same group of Republicans blocked the extension of unemployment insurance for Americans who needed it most and voted against the Making Work Pay tax cut—that gave a tax break to 95% of working Americans.