August 15, 2011
Everything You Need To Know About Fixing Deficits & Jobs
-- by Dave Johnson
Here is everything you need to know about how to fix the deficits and jobs problems. This is a chart of job creation over the last few years:
There is a report in Saturday's New York Times, "White House Debates Fight on Economy," saying the Obama administration is choosing between doing very little about jobs, or doing nothing.
Mr. Obama’s senior adviser, David Plouffe, and his chief of staff, William M. Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact. ... But others, including Gene Sperling, Mr. Obama’s chief economic adviser, say public anger over the debt ceiling debate has weakened Republicans and created an opening for bigger ideas like tax incentives for businesses that hire more workers, according to Congressional Democrats who share that view.
So according to the Times the choices being debated are a) do nothing, because the mean Republicans will block it anyway, or b) offer even more tax cuts for businesses. Yikes!
Meanwhile, out in the Real World...
The ailing economy, barely growing at the same pace as the population, has swept all other political issues to the sidelines. Twenty-five million Americans could not find full-time jobs last month. Millions of families cannot afford to live in their homes. ... [. . .] A wide range of economists say the administration should call for a new round of stimulus spending, as prescribed by mainstream economic theory, to create jobs and promote growth.
But, back in the White House?
Mr. Plouffe and Mr. Daley share the view that a focus on deficit reduction is an economic and political imperative, according to people who have spoken with them. Voters believe that paying down the debt will help the economy, and the White House agrees, although it wants to avoid cutting too much spending while the economy remains weak.
They think that taking money out of the economy will put more money into the economy. Great. As I wrote the other day, this is austeridiocy. As England, France and every other country that ever tried to grow an economy by cutting the economy has learned, taking money out of the economy takes money out of the economy.
What Works In The Real World
Here is everything you need to know about how to fix the deficits and jobs problems:
This is a chart of the monthly job losses that were occurring before and after the "stimulus" package.
Before The Stimulus
In this chart, the RED lines on the left side -- the ones that keep doing DOWN -- show what happened to jobs under the policies of Bush and the Republicans. We were losing lots and lots of jobs every month, and it was getting worse and worse.
During The Stimulus
The BLUE lines -- the ones that just go UP -- show what happened to jobs when the stimulus was in effect. We stopped losing jobs and started gaining jobs, and it was getting better and better.
The Stimulus Winds Down
The TAIL -- the leveling off on the right side of the chart -- show what happened as the stimulus started to wind down. Job creation leveled off.
It looks a lot like the stimulus reversed what was going on before the stimulus.
Conclusion: THE STIMULUS WORKED BUT WAS NOT ENOUGH!
Jobs Fix Deficits
When people are working they are paying taxes and are not collecting unemployment. And they are buying things, which means there is demand in the economy again, so businesses will hire people.
Customers Create Jobs
Actually, the rich don't create jobs, we do. Lots of regular people having money to spend is what creates jobs and businesses. That is the basic idea of demand-side economics and it works. In a consumer-driven economy designed to serve people, regular people with money in their pockets is what keeps everything going. And the equal opportunity of democracy with its reinvestment in infrastructure and education and the other fruits of democracy is fundamental to keeping a demand-side economy functioning.
When all the money goes to a few at the top everything breaks down. Taxing the people at the top and reinvesting the money into the democratic society is fundamental to keeping things going. Cutting taxes at the top steals from democracy's ability to continue this reinvestment.
It doesn't matter how much more money you give to business owners, businesses are not going to hire any more employees until they have a REASON to -- and that reason is customers coming in the door.
Businesses Do Not Create Jobs
Businesses do not create jobs. In fact, the way our economy is structured the incentive is for businesses to get rid of as many jobs as they can. It costs money to pay employees, so businesses want to trim down to the minimum number required to get the needed work done.
Many people wrongly think that businesses create jobs. They see that a job is usually at a business, so they think that therefore the business "created" the job. This thinking leads to wrongheaded ideas like the current one that giving tax cuts to businesses will create jobs, because the businesses will have more money. But an efficiently-run business will already have the right number of employees. When a business sees that more people are coming in the door (demand) than there are employees to serve them, they hire people to serve the customers. When a business sees that not enough people are coming in the door and employees are sitting around reading the newspaper, they lay people off. Businesses want customers, not tax cuts.
A job is created when demand for goods or services is greater than the existing ability to provide them. When there is a demand, people will see the need and fill it. Either someone will start filling the demand alone, or form a new business to fill it or an existing provider of the good or service will add employees as needed.
Once again:
This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
Sign up here for the CAF daily summary.
-- Posted by Dave Johnson at 2:54 PM PST on August 15, 2011.
Verizon Strike: Picketing Can Be Done By Anyone
-- by Dave Johnson
Do you want a path out of this recession? Then help the Verizon workers by joining a picket line at your local Verizon store. (Click to learn how.) Verizon has billions in profits. They pay their executives huge salaries. But they are asking their workers and even retirees to take cuts, so the workers are on strike. They just want what you want - a decent job with decent pay and maybe some benefits. So join them.
Path Out Of Recession
Larry Cohen, president of Communication Workers of America (CWA), said on a call today said, "If a company with profits like this, and paying their top executives more than $50,000 a day, can demand these kind of cuts from its workers, there literally will never be a path out of recession in this country."
Cohen also said,
"The collapse of the standard if living across the country, we need to convince people of the larger issues here. The economics lesson here ... the human rights issues here are enormous. We are attempting to picket every Verizon Wireless store in the country and this can be done by anyone carrying our sign. ...Are people like us going to have any rights in this country, do we have any rights in this country, do we have anything to look forward to?"
Join Them
Last week I wrote, in Verizon's Workers Strike Back At Corporate Greed -- You Can Join Them!:
The reason you see so many cellphone stores and ads everywhere is because wireless is a very lucrative business. Wireless companies are pulling in billions and their executives are raking in the bucks. But they are also squeezing their workers, their customers and our government.
Right now Verizon is greedily trying to put the squeeze on its workers, cutting pensions, sick pay, health insurance, even disability for employees injured on the job. If this story sounds all too familiar, this part won't: Their workers are fighting back with a strike! And you can join them!
Verizon's demands include: • Continued contracting out of work to low-wage contractors, which means more outsourcing of good jobs overseas. • Eliminating disability benefits for workers injured while on the job. • Elimination of all job security provisions. • Eliminating paid sick days for new hires and limiting them to no more than five for any workers. • Freezing pensions for current workers and eliminating them for future employees. • Replacing the current high-quality health care plan with a high-deductible plan requiring up to $6,800 in additional costs.
The Is About You
This is about you because this is happening to everyone. These Verizon workers are putting everything on the line for you -- trying to do something about it. They going on strike to try to get your wages and pension and health care back, or keep those things from being taken away from you. Don't forget that when you hear the corporate propaganda from FOX News and the rest of the corporate media, telling you about "union thugs" and "union bosses." This is about you and if you are anywhere near a Verizon worker picket line you should go join them.
What You Can Do
Click here to learn ways that you can support the strike.
Easy: Click to Tell Verizon: Stop Attacking the Middle Class. From the petition:
Over the last four years, Verizon has made $19 billion in profits while paying its top five executives $250 million in compensation and bonuses .With middle-class families already struggling, it's time for Verizon to share its success with the hardworking Americans who made it possible. This is not a time for corporate greed. It is time to do the right thing.
Verizon made dramatic concessionary demands to kick off bargaining and never moved. Now you are refusing to bargain with the CWA & the IBEW.
Socially: “Like” them on Facebook.
Techy: Download their iPhone app.
Have Fun, Meet People, Join A Local Picket Line
Much more fun: Join them! Click here for a map of local picket lines that you can join. I especially like this one: Adopt Verizon Wireless a store to picket and leaflet.
You can find more info here including signing up to receive updates.
This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.
Sign up here for the CAF daily summary.
-- Posted by Dave Johnson at 2:49 PM PST on August 15, 2011.
August 14, 2011
Here's The Virtually Speaking People Are Talking About
-- by Dave Johnson
The one where I got heated: Seeing the Forest: Listen To Susie And Dave
-- Posted by Dave Johnson at 2:40 PM PST on August 14, 2011.
August 13, 2011
Republicans Call Instrastructure Spending "Extremism"
-- by Dave Johnson
Just wow. The following are Republican reactions to this Contract for the American Dream video:
This headline is not the Onion, it's a conservative outlet: Van Jones Forces Innocent Children to Advocate Infrastructure Spending, Oppose Corporate Personhood on YouTube
... cute kids mouth bizarrely sophisticated talking points, including words and phrases they almost certainly don't understand, such as "infrastructure," "living wage," and "tax brackets."
Go read the horrible, nasty comments left by the readers. The usual batch of "High tech Hitler Youth, imo." and "Loving Uncle Sam has nothing but the childrens' best interests at heart. Love The Fatherland."
And this one. Van Jones and MoveOn.Org team up to brainwash children | Wizbang
We’re dealing with some radical folks here… radicals attempting to hide their extremism behind the smiles of unsuspecting and exploited children.Sick stuff.
Made sicker when, as Michelle Malkin documents, you understand who it is that Van Jones is teaming with to further his agenda… not just MoveOn.Org as Greyhawk notes, but the Union thugs at SEIU and the AFL-CIO.
Jones’ use of children and his choice of thugs as partners in the carrying out of his ideas seems fitting.
... Leftists today will go to any length to advance the cause to include thuggery and the exploitation of children.
Sick stuff indeed.
-- Posted by Dave Johnson at 4:04 PM PST on August 13, 2011.
Leafs and Volts
-- by Dave Johnson
In the last week I have seen six (Nissan) Leafs and three (Chevy) Volts in my area. I'm in Redwood City/Menlo Park, in the Silicon Valley area, so you would expect more rapid adoption of electric cars. (The very first Leaf sold in the United States was in Redwood City.) But still, this is more than I expected and a lot of the Leafs still have the dealer plates. So they were probably back-ordered and a shipment just arrived.
My aunt is considering buying a Leaf. I'm thinking of getting the new Ford Focus Electric. We have a 2007 Focus, and we love it. My Honda Accord is 11 years old now... and the electric Focus comes out soon...
Here's the thing about electric cars. Have you ever had to repair your refrigerator motor? Almost the only maintenance you'll ever need on an electric car is replacing tires and lubricating bearings. There is no water pump. There is no timing belt. No valves to adjust. No fuel filter. No oil changes. No exhaust system...
One more thing: Ford and SunPower announce deal to bundle electric cars with rooftop solar power Ford has teamed up with our own SunPower to offer a special deal on a rooftop solar system. The system doesn't directly charge the car -- the system feeds power into the grid during the day and you charge the car at night from the grid. You could make a profit on the power, by the way, if you only count the car-charging, but it will knock down your electric bill enough to pay for itself either way. From the story,
The "Drive Green for Life" program is designed to provide the cars' owners the opportunity to fuel their vehicles with clean energy and have a carbon-free driving experience.SunPower will offer a 2.5-kilowatt rooftop system, which should provide enough electricity to fuel an electric car that travels about 1,000 miles per month, for less than $10,000, after the federal tax credit. Typically, SunPower charges at least $18,000 for a system of that size.
"This is a great opportunity to take solar mainstream," said SunPower CEO Tom Werner. "We're thrilled to provide electric car owners with a clean source of fuel."
So here we are, finally getting away from being tied to the oil system and the (literally) centralized power structure.
Update - Saw two more Leafs just this evening.
-- Posted by Dave Johnson at 10:45 AM PST on August 13, 2011.
Can't Get Rid Of This Ad
-- by Dave Johnson
As I wrote last month about the Google Ads that follow me around, everywhere I go online I see Hickey Freeman ads, because once I looked up a Hickey Freeman sport coat on Google. As I wrote,
I am really, really sorry I ever looked up "Hickey Freeman"on Google once, because now I can't go to almost ANY websites without having to look at Hickey Freeman ads. It's like they are chasing me around. I've been branded on the web as "The Hickey Freeman Guy" I guess.It's terrible. I watch a YouTube video and up on the screen pops "Hickey Freeman Sale" or something like that.
One thing for sure, it has made me decide I'll never, ever buy a Hickey Freeman jacket, because of the creepiness. And that I hate Google now, even more than Facebook, because of the invasion.
-- Posted by Dave Johnson at 8:54 AM PST on August 13, 2011.
August 12, 2011
Austeridiocy: Budget Cuts Take Money Out Of The Economy
-- by Dave Johnson
"The patient is sicker so we have to apply more leeches." Countries that are trying to fix deficits with spending cuts are finding out that taking money out of their economies by cutting government is slowing their economies. Duh! Imagine that! So instead of cutting deficits the resulting slowdowns are making their deficits worse as tax revenues drop and joblessness goes up. So what are they proposing? More "austerity" spending cuts. I call them "austeridiots."
It Didn't Work So Do It More
See if you can find the logical flaw in this AP news report: French growth sputters to a halt in 2nd quarter,
The French government was put under further pressure to cut deeper into spending after figures Friday showed growth in Europe's second biggest economy ground to a halt in the spring, in another sign that the global economy is facing rising recessionary threats.With the worse-than-expected French growth figures suggesting a possible budget shortfall this year, government ministers may have to find additional savings...
Right, the cuts are slowing the economy, which means the deficits are worse, so they "have to find additional savings." Cutting government - taking money out of the economy - slowed their economy, so they think they'll solve the problem by taking more money out of their economy. Austeridiocy.
Austeridiocy Here, Too
Continue reading "Austeridiocy: Budget Cuts Take Money Out Of The Economy"
-- Posted by Dave Johnson at 1:40 PM PST on August 12, 2011.
August 11, 2011
The Top 1%
-- by Dave Johnson
If you haven't seen this yet, it is a must-see. "With 1% of Americans controlling 40% of the country's wealth, we examine the gap between the rich and the rest."
The richest one per cent of Americans earn nearly a quarter of the country's income and control an astonishing 40 per cent of its wealth.Inequality in the US is more extreme than it has been in almost a century - and the gap between the super-rich and the poor and middle class people has widened drastically over the last 30 years.
Meanwhile, in Washington, a bitter partisan debate over how to cut deficit spending and reduce the US' $14.3 trillion debt is underway. As low and middle class wages stagnate and unemployment remains above nine per cent, Republicans and Democrats are tussling over whether to slash funding for the medical and retirement programmes that are the backbone of the US' social safety net, and whether to raise taxes - or to cut them further.
The budget debate and the economy are the battleground on which the 2012 presidential election race will be fought. And the US has never seemed so divided - both politically and economically.
How did the gap grow so wide, and so quickly? And how are the convictions, campaign contributions and charitable donations of the top one per cent impacting the other 99 per cent of Americans? Fault Lines investigates the gap between the rich and the rest.
-- Posted by Dave Johnson at 2:16 PM PST on August 11, 2011.
Need More Tax Cuts For The Rich
-- by Dave Johnson
Americans aren't spending enough! Regular people don't have any money. Need more tax cuts for the rich, immediately! There is no other path imaginable. Americans’ Economic Confidence Plummets | FDL Action
-- Posted by Dave Johnson at 7:14 AM PST on August 11, 2011.
August 10, 2011
Fox News - No Limits
-- by Dave Johnson
Steve Benen in Political Animal - Fox News’ lack of limits asks,
Obviously, the Republican cable news network has a lot invested in condemning the president in every possible instance, but is it too much to ask that Fox accept some limits?Go see why.
-- Posted by Dave Johnson at 10:13 PM PST on August 10, 2011.
