It isn't easy for ordinary people to process the maze of stimulus proposals in legislation making its way through Congress. And Republicans have done an effective job of challenging the current package with a media blitz that has left Democrats playing defense. But let's face it; Democrats could be doing a better job of framing the debate as well as making sure the measures they suggest are recognizably stimulative and fiscally responsible.
The fact is there are lots of ways to energize markets. But the package would be more palatable if questionable items were pulled. Indeed some have already been removed. Still Republicans aren't on board and claim they were left out of the legislative process, although the House bill includes certain tax provisions precisely because President Obama was trolling for their support. Unfortunately, their acquiescence seems to require accepting the failed policies of the last eight years, and the threat of a filibuster hangs over proceedings in the Senate unless they get their way.
Democrats are accused of loading the recovery package with pet projects described as stimulus. But some bi-partisan agreement does exist - - for instance an amendment by Democrat Barbara Boxer and Republican John Ensign that would allow companies with sheltered off-shore income to bring profits back home at greatly reduced tax rates, providing some much needed tax revenue. Tax havens are, however, one of the more mystifying aspects of what is considered acceptable business practice in this country.
A favorite thesis of Republicans is that Roosevelt's New Deal didn't turn the tide of the Great Depression, World War II did. Actually, New Deal spending did significantly reduce unemployment and create viable, ongoing projects. According to economist Paul Krugman the economy stalled when, as the country recovered, Roosevelt was encouraged to balance the budget and restrain government spending. Today, Senator Ensign and his colleagues, want tax incentives, infrastructure projects and "encouraging people to work harder" to be at the center of any recovery program. For people working their tails off at stressful jobs or others who would be grateful to have, but can't find, even a stressful job, working harder is not the answer to their financial plight. That old pull-yourself-up-by-the-bootstraps message is a hard sell in this economy.
On Wednesday, Senator Lieberman spoke in support of a Senate proposal that would provide a $15,000 gift for potential homeowners to help them purchase a home. He reasoned that such a windfall would encourage real-estate investment and revive the American dream of home ownership. But once again the nagging issue of jobs returns to perplex the notion that tax incentives and short-term projects, as opposed to job security, can reinvigorate an economy in need of stability and far-reaching, imaginative programs.
As businesses continue to outsource jobs and hire "independent contractors" instead of full-time employees with benefits, planning for the future, rather than just bandaging the wounds of currently malfunctioning banking and business models, should be a crucial element of any stimulus plan. But Republicans tend to resist what they consider to be financial restructuring, even though green and other technologies hold the promise of both near- and long-term employment as well as investment and business opportunities.
At one major corporation the Chief Technical Officer recently sent out a questionnaire asking employees to "justify" their jobs. The company intends to export much of its technical work to India so the questionnaire was a not-so-subtle indication that being unable to justify your presence probably meant you'd be clearing out your desk soon. The nation's tenuous employment picture should alert leaders to the reality that, while shovel-ready projects are a must, investment in technology and new industry are vital to the country's future economic health and should be part of decisions about how best to create jobs and stimulate the economy for the long haul.
Oddly, in Senate and House stimulus deliberations, the Republicans act as if they are still in charge. Saxby Chambliss on Wednesday even suggested that the current recovery package should be scrapped and a new one developed from scratch. Someone should send these guys a memo; constructive proposals are welcome, but calling the shots isn't part of their job description anymore. A new leadership team is in town.
"trolling" for
Losing hope...
Another WTF moment for me was the whole affair with the cabinet position of Secretary of Commerce. When I heard P.O. was offering the post to a Rethuglican senator, I couldn't believe it. Talk about putting the fox in charge of the hen house! But shortly thereafter I THOUGHT I saw a plan, I thought I saw what could have been some sort of justification for such a questionable appointment, and that was the possibility that the Democratic governor would appoint a Democratic senator to fill the vacated senate seat. OK I thought, so the Dems are finally playing serious politics and I guess it's a fair price to pay for a potentially filibuster proof majority in the senate (given Frankin being seated sometime). But days later what do I hear? I hear that they're throwing away the opportunity by letting a Rethug take the seat. Here we go again, roll over and expose your belly so the Rethugs can eviscerate you. What the hell is THAT I ask?
If P.O. and the Dems don't quit acting like "Mr. Rodgers" and start acting like "Patton" they're going to lose the headway they've made so far, and in the process our once great country is sure to crash and burn.
Who will frame reality to make what really workd work!
#1 Stop layoffs in state and city services. These are people who have jobs that would disappear if those governments were forced to cut back. Things like police, fire, transit, housing assistance, and all the other needs that skyrocket just when there is less money available.
#2 Shovel ready infrastructure, projects already approved that might have even gone ahead if the economy had not tanked. This and #1 get money instantly into the economy just by the effect of not removing it.
#4 Housing refinance. We have already bought tons of bad mortgages at way over actual value, we could buy a lot more at actual value and then reauthorize the mortgages by lower interest at actual value. That way the price may still be above market, but the interest rate would be low enough that the house would not foreclose or be sold quickly for any windfall profit. Just doing that would provide a great many jobs for those who did the paperwork.
#5 Small business fostering. Instead of letting conglomerates produce all the parts or suck up all the profits as was the Bush policies. A reverse of Bush that transparent processes make all levels of procurement that the government does available online opening up the process so that those not in crony networks can do the work as well. The net effect will be that the work will get done at a small percentage of the cost even as those who actually Do the work will be earning more.
#6 Social Security - most folk living on Social Security are getting half the real incomes of their parents Social Security and at ten years older to start. Real incomes and real life expectancy have not matched the GOP propaganda that has cut Social Security, and now real life expectancy is actually going down. Tax increases to pay for it (when possible later) need to go to those 1% of the population who got all the savings in the first place, as that is where half the incomes and net worth are in the first place.
#200 Tax cuts for rich folk, unless the money is Directly tied to actual new investment in business infrastructure that employs new people (and does not replace more old people), or moves jobs from over seas to the US.
Longer term needs will also have to be met, but what is needed now really needs to be justified as causing a quick effect.
If the Gang Of Pirates think that the only good Democrat is a dead Democrat, only a fool would think it bipartisan to accommodate them.
Astroturf!
The appalling stimulus bill is yet another trillion dollar raid on working taxpayers. It is backed by heavily-funded corporate astroturf campaigns. Only a tiny fraction of the stimulus would trickle down to working taxpayers, but we'd have to pay the entire bill. We're much better off without it.
One of the most appalling aspects of the appalling stimulus bill is Boxer's tax holiday proposal. That's several hundred billion dollars in income where the big corporations get to pay 5% tax instead of 30% tax. The big corporations stash their money offshore until every few years Boxer and friends push through a tax holiday for them. We should simply tax their offshore profits, not grant them exemptions. Working Americans have to pay taxes, so can they.
The country needs a trickle-up stimulus, not another trillion dollar grand theft. Let's start by extending unemployment benefits, providing a 50% federal subsidy on non-luxury food items, and prosecuting everyone involved in food price fixing.
A more simple solution is ....
If the Gang Of Pirates think that the only good Democrat is a dead Democrat, only a fool would think it bipartisan to accommodate them.
Someone Has To Be In Charge
Your complaint about the Republicans is noted, but doesn't fully explain the situation in DC. There can be no leadership vacuum in politics. The opportunistic will always take advantage until someone or something stops them.
The Democrats should have been establishing the fact that they are in charge and did not. Too many of Obama's nominations have crashed and burned, reducing his credibility at a time that he needs it most. The Democrats wilt every time the Republicans raise a complaint about a pending bill, which only encourages them to continue their obstructionist ways. And Obama has abandoned the public airways to the likes of Rush Limbaugh.
There is still time to reverse this situation before serious damage to the nation occurs. The announced Monday address must begin the process of Obama asserting his dominance, which will have to be backed by forceful Democratic Congressional action. Failure now means Palin can make serious plans for 2012.