Read the “Low-Wage Lessons” report from John Schmitt at the Center for Economic and Policy Research (CEPR) – it shows why higher wage jobs (“high road” jobs) are so important for a large middle class.
Popularity: 1% [?]
This article on $4 million awarded to Spectrum Brands by the Wisconsin Economic Development Corporation reminds me of the basic wisdom in investing in infrastructure that helps business in order to attract it, instead of giving public money directly to businesses to locate in the state. While I don’t know more than the information the article presents – if the state offered mass transit funding (for bus routes going to the location), renewable energy development (e.g. solar or wind) to reduce utility costs and/or cutting edge ultra high-speed internet connections for the area then the business would benefit greatly from reduced costs at the same time that the local area would benefit from investment reducing business/resident costs and/or improving the business environment/residents’ quality of life. It’s about making public investments that leverage tax dollars to benefit businesses and citizens to create a greater public-private win-win.
Popularity: 1% [?]
The bottom line for me with Summers memo is that when it came to bailing out the American people – who were facing a massive financial crisis often through no fault of their own – there were all sorts of reasons not to go full-bore, and ultimately those reasons prevailed.
Barack Obama was elected president with a huge and uniquely mobilized base of support – one that was quietly demobilized soon after his election. Other potential power bases of the left were earlier demobilized and defunded at the Obama campaign’s insistence as well. In short it was Obama’s game. President George W. Bush had bailed out the banks, protected financial firms like Goldman and Morgan Stanley by giving them bank status, and protected AIG creditors (including financial firms) on about as favorable terms as imaginable (100 cents on the dollar – arguably more than was imaginable given the circumstances). The risks of the financial sector were socialized. For Obama it was now time to bail out the great mass of American people who, through no fault of their own, faced massive job losses – and massive home foreclosures due to among other things fraud and the failing housing market.
Suddenly there were concerns about limiting the stimulus because of deficit spending, of not having enough “ready to build” projects that could be implemented without fraud (Vice President Joe Biden would be put on the case) and various other objections. In short, suddenly when it came to the majority of Americans there were all sorts of reasons not to go full-bore saving them like the banks and financial firms. Would Obama’s supporters be mobilized to save themselves and other Americans with an aggressive stimulus? No – an aggressive stimulus would not be sought, much less Obama supporters mobilized to push it through. Individual and small business risks would be borne alone.
I learned a lot about President Bill Clinton when he “ended welfare as we know it” – eliminating the guaranteed social safety net with insufficient thought about Americans who were using it or, in future downturns, would need it. To me the stimulus was President Barack Obama’s telling moment. Notably those Americans who did need or would need the help the most, through no fault of their own, were those again who seemed most forgotten. Today we call them the “99%” – and they’re still waiting for a stimulus that will return the economy and their lives to “normal”.
Popularity: 1% [?]
I’m not a lawyer, but from what I can tell there’s next to no substance in Newt Gingrich’s contract with Freddie Mac once you get past various legal disclaimers, protections and, of course, his consulting fees. To a layperson like me it boils down to ‘we’ll pay you $25K/month (up to $300K total) for whatever – until such time as we reach $300K (unless we extend it), or until we stop paying you for some reason to be determined’. Far from transparent, but good pay if you can get it.
So, how does Gingrich’s position as Freddie Mac “Historian” stack up against other historians? According to the Bureau of Labor Statistics the median historian takes almost a year to make what Gingrich made in two months – and in four months Gingrich surpassed the annual wage of historians in the 90th percentile of earnings. Again, not bad work if you can get it.
Popularity: 1% [?]
It’s natural to think that you want the weakest opponent against your preferred candidate – but I’d offer a caution. The weak opponent could win (anything’s possible – especially in these economic times) and then you have them, in this case Gingrich as President of the United States. It’s a sobering thought.
Popularity: 1% [?]
In recent years the bar has been set pretty low for Texas governors aspiring to be president. It appears even Rick Perry fundraisers found their candidate below the bar.
Popularity: 1% [?]
It’s not about state’s rights – it’s about the inability of the federal government to help the American people. We need economic stimulus to fight our economic depression – and we aren’t getting it. Sure we need to keep pressure on the federal government – their approach is and has been insufficient and wrong. We must fight against the reasons the federal government is paralyzed to help – reasons of their own making. It’s also true that many states, cities and localities aren’t going to do what’s necessary (or can’t). But localities, cities and states who want to move forward are going to find ways to make smart investments in their own future infrastructure – at least if they care about their people.
Opportunities for local investment in future infrastructure (think bonds, public/private investment vehicles and/or philanthropy) should be offered directly to residents in the same spirit as war bonds once were – even if that means higher taxes, which it often will. Those taxes should be structured not to cause more damage to those already hit hard by cutbacks and the economy. If people care about where they live (and they do) and care about their community (and they should) then they need to act. Politicians that respond to the infrastructure and jobs crisis by putting money where the needs are have my vote – and they should have yours too.
More specific thoughts on this to come – it’s one of the most important issues for the next five years – and its impact (one way or another) will determine the coming decade and beyond.
Popularity: 1% [?]
It’s been too long – and I’ve missed blogging. So I’m back.
I can’t promise nearly as many posts as before – but I do promise to continue to post with integrity – with whatever insight, foresight and hindsight I possess.
Looking forward to it!
Larry, let me know about the hosting charges 
Popularity: 1% [?]
“Doctor why have you stopped the bypass surgery – the patient is dying!”
“I’m sorry. It’s not bipartisan.”
When “bipartisanship” clogs health care reform, we should bypass it.
[Hat tip to Senator Bernie Sanders for the inspiration]
Popularity: 21% [?]
