December 2010
18 posts
New Years Prediction (II): The U.S. Economy in...
What will happen to the US economy in 2011? If you’re referring to profits of big corporations and Wall Street, next year is likely to be a good one. But if you’re referring to average American workers, far from good.
The two American economies — the Big Money economy and the Average Working Family economy — will continue to diverge. Corporate profits will continue to rise, as will...
New Years Prediction (I): The Tea Party...
Next week starts the new Congress, and with it the Tea Party conservatives. What’s their strategy? What will they rally around?
They’ll grouse endlessly about government spending but I don’t think they’ll use any particular spending bill to mobilize and energize their grass roots. The big bucks are in Social Security, Medicare, and defense, which are too popular. And their...
The Attack on American Education
Over the long term, the only way we’re going to raise wages, grow the economy, and improve American competitiveness is by investing in our people — especially their educations.
You’ve probably seen the reports. American students rank low on international standards of educational performance. Too many of our schools are failing. Too few young people who are qualified for college...
Why Obama Wins on Foreign Policy and Gays but...
Two important victories for President Obama this week — the New Start anti-ballistic missile treaty with Russia to reduce weapons and re-start inspections, and the end of Don’t Ask Don’t Tell after a 17-year ban on gays in the military.
Why have Senate Republicans been willing to break ranks on these two, while not a single Republican went along with Obama’s plan to extend...
The Real Reason Why Republicans Don't Want the...
Has the President’s olive branch on extending the Bush tax breaks for the rich opened a new era in bi-partisanship? Doubtful.
Anyone who isn’t worried about loose nukes – nuclear warheads that can travel long distances, and could find their way into terrorist hands – should have his head examined. Russia and the U.S. still have thousands from the Cold War days. The old Start treaty began the job...
The Year Washington Became "Business Friendly"
History will record 2010 as the year Washington became “business friendly.”
Not that it was all that unfriendly before. Some would say the bailouts of Wall Street, AIG, GM, and Chysler were about as friendly as it can get. In addition, Washington gave windfalls to drug companies and health insurers in the new health bill, subsidies to energy companies in the stimulus package, and billions to...
The New Tax Deal: Reaganomics Redux
More than thirty years ago, Ronald Reagan came to Washington intent on reducing taxes on the wealthy and shrinking every aspect of government except defense.
The new tax deal embodies the essence of Reaganomics.
It will not stimulate the economy.
A disproportionate share of the $858 billion deal will go to people in the top 1 percent who spend only a fraction of what they earn and save the...
The New Era of Cooperation Between the White House...
Jamie Dimon, chairman and CEO of JPMorgan Chase & Co., praises the President’s agreement with Republicans to extend the Bush tax cuts.
“If we’re going to strengthen our economy and grow jobs, this type of outreach — and cooperation between the administration, Congress, and the private sector — are critical,” says Dimon.
Dimon met last week with the President. Thirty...
Why America's Two Economies Continue to Drift...
America’s two economies are getting wider apart.
The Big Money economy is booming. According to a new Commerce Department report, third-quarter profits of American businesses rose at an annual record-breaking $1.659 trillion – besting even the boom year of 2006 (in nominal dollars). Profits have soared for seven consecutive quarters now, matching or beating their fastest pace in history....
The Why-Should-I-Get-Out-Of-My-Chair Gap in 2012
In the 2010 midterm elections Democrats suffered from a so-called “enthusiasm gap.”
If Dems agree to the tax plan just negotiated by the White House with Republican leaders, they’ll face a “why-should-I-get-up-out-of-my-chair” gap that will make 2010’s Dem enthusiasm seem like a pep rally by comparison.
It’s a $70,000 gift for every millionaire, financed...
Why Democrats Should Disregard Bill Clinton's...
Bill Clinton seems the perfect validator for Barack Obama — which is why the President is utilizing the former president for selling his tax deal. After all, the economy boomed when Clinton was president and 22 million net new jobs were created. What’s more, Bill Clinton was reelected — even though he lost both houses of Congress in the 1994 midterms.
But the analogy falls apart...
America's Future in the Global Economy: This...
On Monday, the same day the White House was finalizing its $900 billion tax deal with Republicans, the President gave an important address at a vocational technical school in North Carolina.
It was his clearest statement yet about the challenges America faces in the global economy. The United States has gone from 1st to 9th place among nations in the percentage of its population that graduates...
Why the Tax Deal Confirms the Republican Worldview
Apart from its extraordinary cost and regressive tilt, the tax deal negotiated between the President and the Republicans has another fatal flaw.
It confirms the Republican worldview.
Americans want to know what happened to the economy and how to fix it. At least Republicans have a story – the same one they’ve been flogging for thirty years. The bad economy is big government’s fault and the...
The President's Last Stand Is No Stand At All: Why...
The deal the President struck with Republican leaders is an abomination.
It will cost $900 billion over the next two years — larger than the bailout of Wall Street, GM, and Chrysler put together, larger than the stimulus package, larger than anything that’s come out of Washington in years.
It makes a mockery of deficit reduction.
Worse, the lion’s share of that $900...
The American Jobs Emergency Requires Action
This is not a recovery. It’s a continuing jobs emergency and it demands action.
We learned this morning that unemployment rose to 9.8 percent in November and employers added only 39,000 jobs. Private employers added 50,000 — the smallest gain since January. Government employment continued to shrink.
We’re heading in the wrong direction. In October, the jobless rate was 9.6...
Why Obama Should Extend the Bush Tax Cut to...
The President should propose that the Bush tax cuts be extended for EVERYONE — but only on their first $250,000 of income.
Hey, wait a minute. That’s exactly what he is proposing. EVERYONE gets a continuation of the Bush tax cuts on the first $250,000 of their incomes. If your income is $251,000, you’ll get the Bush tax cut on $250,000 of it. Only $1,000 would be taxed at the...
The Truth About the Federal Budget Deficit That...
Rarely before in American history has there been more disconnect between Washington and the rest of the nation. Washington is obsessing about the projected federal budget deficit. Everyone else in America is worried about jobs.
To get jobs back we’ll need more federal spending, not less — at least over the next few years. Consumers can’t and won’t spend, banks can’t and won’t lend,...
The Big Economic Story, and Why Obama Isn't...
Quiz: What’s responsible for the lousy economy most Americans continue to wallow in?
A. Big government, bureaucrats, and the cultural and intellectual elites who back them.
B. Big business, Wall Street, and the powerful and privileged who represent them.
These are the two competing stories Americans are telling one another.
Yes, I know: It’s more complicated than this. In reality, the lousy...
