The Economic Policy Institute
The Economic Policy Institute posts another way of looking at America's jobs crisis. We're now well more than than two years into a job market that's worse than anything we saw in the two previous recessions.
If you're out of work, you can expect your job search to take just over 40 weeks. And you've got company, lots of it. More than eight million Americans have been out of work for at least 15 weeks, and more than six million of those have been on the curb for at least 27 weeks.
The real problem is jobs, and we're stuck with it for a while. EPI throws this prescription into the mix:
President Obama and Congress can implement policies that will rejuvenate the labor market, including: enacting a program to repair and upgrade the nation’s 100,000 public school buildings; implementing direct job creation programs in hard-hit communities; approving additional spending on transportation infrastructure; providing fiscal relief to states; and expanding the safety net (because doing so gets money into the hands of people who will immediately spend it).
That last part comes with an asterisk. Even if by some miracle Congress agreed to those steps, they'd be offset by the austerity measures in the debt-ceiling deal. The Wall Street Journal (sub. req'd.) reports today that President Obama is thinking of asking the new deficit commission to consider ways of stimulating the economy -- an infrastructure bank, extended unemployment benefits, etc. -- under cover of asking for steeper cuts in spending. "There's no reason to stop at $1.5 trillion," an unnamed official tells the paper.
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So the President's idea is to come out with all of these grandiose plans that he truly doesn't expect to be enacted in the House so that he can beat Congress up in the elections for 2012.
Mr. President, where were you two years ago when you let Congress ignore this issue? One year ago? Six months ago?
Yes, I'll be voting for you again, but only while I hold my nose.
Do you remeber Nancy Pelosi promising that the Health Care bill would produce jobs? That the Dodd-Frank bill would benefit the consumer? We are still waiting for the jobs and we got higher premiums. As far as the Dodd-Frank bill it is costing the consumer fees for ATM usage(Wells Fargo $3 fee for Debit card usage), no more free checking accounts, higher credit card interest and difficulty obtaining loans. Instead of wasting two years of control of the Congress in the two above monstrosities, the Democrats could have passed job bills like a tax holiday on payroll taxes (as recommended by Robert Reich) put money on infrastructure (instead the stimulus went to Public Unions) and develop an energy plan that would have created lots of jobs (Drilling in America instead of importing oil) I agree with you about the plans. I voted once for Obama, but I will follow the mantra of ABO (Anybody But Obama). Fool me once shame on you, fool me twice shame on me
Robert E Intriago, After reading your post I have to doubt you voted for Obama the first time. If you did I wonder why. Did you think he was a conservative and wouldn't use government to try to make the changes he said he woudl during his campaign? As for your claim that the Dodd-Frank bill increased costs to consumers, there is nothing in the legislation that mandates higher ATM fees (which by the way is not a qualified measure of it's sucess). But even if there are higher ATM fees, the answer is to either find banks that charge no fees (you know, consumers pushing down the price through comeptition) or by writing legislation that limits those fees. Your basic complaint is not against this legislation but business practices.
And the Health Care it is creating jobs, estimated to be 200,000 by 2013 and then as more parts of the health care law go into effect, up to 800,000 by 2019.
I voted for Obama because the Republicans had spent too much under Bush, McCain had no idea and a new person would change the course of America. In addition I believed that he would seek jobs for America, would keep his word that he would not impose the health care mandate, close Guantanamo, ban lobbyist, veto earmarks, and pass an inmigration bill. Then I found out he was nothing but a teleprompter reader with no plans and lack of leadership and all his promises where nothing but that. By the way who estimated 200,000 job by 2013, Nancy Pelosi? There maybe no Health Care bill by 2013, if it is overturned by the Supreme Court and the only thing for sure is that premiums keep on going up and the cost of health care keeps on escalating. The Dodd-Frank bill has a directive to reduce the fees that banks collect from merchants. It was an amendment introduced by Senator Levin of MI.
Might I recommend Thrivent Financial Bank as an alternative? Not only do they not charge ATM fees, but they refund the fees that are charged by the ATM itself. And they are part of a non-profit organization - so they lack the evil corporate desire for profits at all costs. (The bank itself is technically for profit...but it just pays the taxes and gives the money back to the members and community).
www.thrivent.com/ banking
I recommend credit unions as well. Mine refunds the ATM charges into my savings share. The credit card APR is fixed and has been lower than the industry average since I joined in the 80's. Oh, yeah, and non of that "your payment was a day late so your rate is now 29.9%"!
I love my credit union. I have a Visa card with them. They actually lowered the interest rate I pay on it. I also have a very reasonable car loan with them.
Do you remember the Republicans have made it their job to de-fund anything the Democrats have passed? They even rolled back Pelosi's green utensil and light bulb programs. That's some real petty stuff right there.
Oh yeah, hate to bust your bubble but...
Why do you think all these people are getting into healthcare?
Also, you would have had higher premiums regardless of the new Health Care Law. It was going up 13% every year before Obama even took office. What makes you think it was all of a sudden going to stop increasing? These are the kind of facts the right just refuse to see. They don't like facts, science and emperical evidence.
The Amygdala Strain: Right-Wing Teabaggery as Psychological Pandemic
With the ascendency of a barefaced buffoon to the apex of right-wing politics some began to suspect that conservatism was not just a political disposition. And as George W. Bush’s corporate-Jesus coalition evolved into a throng that could call Sarah Palin, Michele Bachmann and now Rick Perry its own, Republicanism completed its transition from political ideology into psychological disorder ...
Article:
http://beeryblog.wordpress.com/2011/06/28/the-amygdala-strain-right-wing-teabaggery-as-psychological-pandemic/
We can't cure the economy until we cure the Amygdala Strain.
beeryblog
And then there's jerks like this one here:
http://gawker.com/5831050/techs-most-shameless-greedy-bastard
Wow, thanks for sharing that, what a friggin' ass! If there is any justice he'll gets his in the end, I hope.
Yay!!! I get to join that downward trend next month!!! Yay for government cuts to really important things like scientific research!
Just wait until all the medical schools in the country start laying off their faculty. Most of us are on basically soft money, even those with tenure.
The BBC reported earlier this summer about how the WTO ruled that China could not prevent US companies from supplying parts to Chinese wind turbine companies.
OK, yay yah rah rah for US companies working against socialist principles of state intervention in industry, promoting capitalism, free market principles and the American way, right? Right?
That's what is so weird about this article.
It wasn't US companies that brought the complaint. Unions did. Why? Wouldn't it be in the interests of GE and United Technologies to force the Chinese to play fair and allow them to compete. Well, not really. The US China Economic and Security Review Commission has been studying Chinese practices, and hearing after hearing the same game plan is played out: The Chinese target a technology they want and approach a company with a lucrative deal- a huge segment of the Chinese market is guaranteed for their product, all they have to do is build a factory in china to make the product. After building there, numerous factories spring up producing clones of the product. The American company may complain, but will basically be told they have gotten a percentage of the action- they are making good profits but that could change fast if they keep complaining.
It is an odd brew- Communists and US companies colluding against the United States of America.
Ok, and to this uhhh unconventional narrative we have the cavalry riding over the hill to the rescue. Yay! Yay!, But wait- they are a bunch of guys in hard hats with beer bellies and arms the size of thighs. It's the United Steelworkers! Yay!
(Full disclosure- I've never been in a union, nor do I know any union members or profit from any connections with unions. Nor for that matter have I honestly ever really dug into this outsourcing of US jobs issue. I always thought it was mostly about using telephone operators in India and stuff like that).
The Steelworker complaint was portrayed in the BBC article as being against subsidizing a domestic industry- Actually they like the Chinese spurring growth of Wind. They have a problem with the idea that wind turbines may not use any US made parts whatsoever.
Something else in this article- there is a tie in to Perry's Treason quote yesterday. Schumer and Geitner point to the key Chinese strategy of keeping the US dollar strong so that US exports will be more expensive in China.
Great- so in some perverse Perry reality, Geitner and Bush appointee Bernanke are traitors for pushing the easy money policy that combats Chinese currency manipulation efforts to keep their products cheaper than US products.
Should we play the puppy falling asleep in the water video at this point?
Ok. OK. Read this one story on what Bernanke is doing with his "Money printing" scheme.
BTW- the only people howling louder than Perry and the Tea baggers are Chinese rating agencies who also lecture us to return to a fiscally conservative tight money policy. Of course they would. And what word do we use for those who would unite with the enemies of America?
Yes, It is the Perry- Tea Bagger- Chinese communist party conspiracy attempting to undermine the financial health of the US economy.
Here is another article with better background on the substance of what the Chinese were doing with the Wind subsidies.
Here's the fate of one other US company that makes superconductor parts for wind turbines. They refused to base in China/ let their superconductor tech get ripped off. Fine- so this second largest Chinese wind turbine company accepts $54 million of parts but then refuses to pay. Will they take them to court? They may not have time. This company may fold due to the illegal behavior of the Chinese wind turbine manufacturer. The same manufacturer is exporting turbines to Ireland in a deal worth 1.5 billion pounds. (article)
Ok republicans don't like industrial policy but surely they can view this through the lens of Defense. Without a defense department for small businesses, there is certainly reason to be skeptical about the fate of US companies supporting Green Jobs and employing US's theoretical advantage in high technology.
You too, madscientist74? Though I've got until the end of the year until my grants all run dry and I'm out on the streets. Sure, there's lots of articles about the government creating jobs, but they mostly seem to be in things like construction. What about funding more science, which will in turn benefit society as a whole? Up the funding for more than NIH. Give more to the USDA, NSF, and other granting organizations as well. This whole idea of becoming better educated to improve our economy isn't going to work if us eggheads aren't supported in some way too.
Me too, but I have tenure. Too bad our administration doesn't believe that tenure= a salary. Good thing I'm old.
I know it gets said a lot.....But we give these gazillionares tax breaks for the last eleven years, on the excuse that if they pay their fair share they will not be able to create jobs, but now they complain that the country is too unstable to invest money in it. Te dollar rules the day.
You know that when Europe was in a mess after WWII we created the Marshall Plan. The US had the funds to do so and this created new jobs for us because the Europeans where using the material we where providing and as they recovered, they still bought from us items the needed. Now we see that the US corporations are holding cash and not spending and not having to hire people. Someone in the inner circles of the great corporations should realize that as soon as they hire people they begin selling more products which will creat more profits for them. Take the leap, US Corporations, hire more people and see how they will start to spend and then see how the profits grow. The US government is in a knot so you have to do itd.
It bothers me when people say Obama is to blame...8 frickin' years of bull@!$%# Bush cannot be fixed in three years. The regular folks who happen to be right wing Republican (Teacrap or not) are going to see what kind of STUCK we're going to be in if another asshat like Bush (or worse) gets elected.
Obama needs to grow a pair and stand up for what he believes and quit pussyfootin' around with the stupid likes of whiny-ass Boehner and his ilk. PUT YOUR FOOT DOWN!
Wait a minute! Before everyone jumps on the blame Obama bandwagon (and some of you are already turning that direction) let's consider the fact that Obama has largely given in to the demands of Republicans when it comes to the economy. He's enacted budgets they want and has allowed the shameful Bush tax cuts to stand unchallenged for the time being. Wasn't all that done ostensibly for economic recovery? And where is that recovery? Where are the jobs those tax cuts were supposed to have created?
This is insanity! At what point do we collectively as Americans admit that this trickle down nonsense simply doesn't work? How many times do we have to burn our fingers on that same stove? We've been doing this tax cut for the wealthy approach for the last 30 years and it NEVER WORKS. I'm seriously starting to question the capacity my fellow citizens have for learning from our mistakes.
It's amazing how many facts you can get people to ignore if you just shout loud enough.
Trickle down works real good. It just ain't money that trickles down.
This is a really great point. The economy is bad because Obama gave in to the Republican demands. Everything he rolled over on was for them and the economy. He honestly thought they were dealing above board with him. I don't think the guy is weak. I think the guy is naive.
There is no way they will ever deal above board with Obama. The GOP are like rats in the basement. They will never deal honestly with Obama. The facts are staring everyone in the face. They need a jacked up economy to beat Obama. And that's what they are doing.
BINGO!
I blame him for exactly that. He's not that stupid a person. Whatever strategy he has is actually *theirs*. Manchurian candidate, trojan horse, Judas... Pick the label you prefer. Actions speak much louder than words (and he does say lots of pretty words he has no intention of living up to).
It's worse than this. According to extensive reports in last week's The Economist, our country is in the sixth (6th) year of economic stagnation. We are, in essence, giving the Japanese a run for Best Lost Decade By A Major Economy. And there is no indication that it's going to end anytime soon. A turn-around will require political will that does not exist in Washington. Stagnate cheerfully!
My husband and I both experienced unemployment during this recession, and thankfully our searches did not last 40 weeks, but we did take jobs that paid less than we earned previously. Though my husband was not a victim of persistant unemployment, he was in construction, so he suffered from recurring unemployment. Work a week, or two, maybe a month or two, and then off a week or two, or maybe a month or two. During 2010, he worked about the equivalent of 24 weeks...less than half the year, which was finally enough to push him off of the roller coaster.
My heart goes out to those still struggling, because there's not much out there. We have not seen unemployment like this since the Great Depression, and it was government spending and employment opportunities thru the WPA that pulled us out of that. We need a new program like that, not more government spending cuts, or we will never recover. Just like in the past, we need to raise taxes, increase spending, and then gradually dial back as the economy recovers. (Ideally this scaling back can be accomplished thru attrition as workers return to private secor employment)
Robert, if you don't like BS bank fees, join a credit union.
No one is looking at the problem, just the symptoms. There is only so much money in the world to go around, if it is not being circulated like blood in our body then the body dies. In order do make jobs that money not being used needs to be invested in the future, jobs make more products that people with jobs buy, without the jobs we will never change our future. Every billionaire should be creating jobs so to push this nation and the rest of the world out of this mess they created. Unless you circulate the money it just stagnates like we have now.
This is so ridiculous! Rachael, if you would wake up you would see that REAL unemployment (U6) in Oregon is over 20%.
Why do you insist on quoting the politicians number of people receiving unemployment insurance when the Labor Dept publishes actual unemployment (U6)?
stuck? maybe it just needs some butter on it. #IAStateFair #poorcomedicrelief
I wonder if many companies refuse to hire for political reasons, they do not want to abide by the epa rules (cuts profits), nor do they want to pay a livable wage. Stop/hold jobs, wait for people to lose faith/hope and allow the pefered politicians to gain office then do as they damn well please. Make more profit, pay less tax/no tax, no government agencies to stop the pollution of the air/water. Does big buisness wants Obama defeated, I debate with myself.
The problem with that strategy is that while you're going Galt and waiting for Washington to miss you, one of your competitors has hired the people you didn't and doubled his market share.
Why does Rachel Maddow's blog feature a large ad for Rand Paul and a "Right to Work" petition drive???????
The United States is facing a large number of seemingly intractable problems such as:
The reason all these problems are so intractable is that special interests don’t want them solved. US law allows these special interests to secretly buy politicians to harm the national interest. The solution is a constitutional amendment to take money out of politics i.e. stop corporations from “donating” to politicians altogether, and limit donations from individuals.
Absolutely. Though far from unique to the US. It's over, which would be fine if "capitalism" didn't take everything else down the toilet with it.