Budget

How Bernie Sanders, In New Role, Could Make Wall Streeters Very, Very Unhappy

The iconoclast from Vermont plans to use his place as opposition leader on the Senate Budget Committee in a whole new way.

(Photo By Bill Clark/CQ Roll Call) (CQ Roll Call via AP Images)
(Photo By Bill Clark/CQ Roll Call) (CQ Roll Call via AP Images) Senate Budget Committee ranking member Senator Bernie Sanders, independent of Vermont, holds a news conference on the budget on Friday, January 16, 2015. B ig banks now have to contend with an old enemy in a new position of power. Bernie Sanders, the United States senator from Vermont, plans on using his new position as ranking member of the Senate Budget Committee to take on too-big-to-fail financial institutions by advocating for their dissolution. Though a registered independent, Sanders caucuses with the Democrats, allowing him to assume the ranking member role representing the minority party. While normally the domain of the Senate Banking Committee, the oversight of Wall Street, Sanders and his staff believe, is a critical budgetary issue. Democrats need to directly challenge Wall Street’s power, they assert, by boldly reframing the argument against the consolidation of financial institutions in terms of its cost to...

Labor at a Crossroads: The Case for Union Organizing

The labor movement has been growing while shrinking—growing through organizing.

(AP Photo/Seth Perlman)
T he union movement is 3.5 million members smaller than 40 years ago, and the forces that brought that about are as energetically engaged and powerful as they have ever been. From that undeniable fact, it has been wrongly concluded: Union organizing is impossible, futile, or a thing of the past The labor movement is dead, or dying The best hope for workers is through something different from trade unions and collective bargaining. These conclusions are very disconcerting to this organizer. I am upset that there’s so little acknowledgement of the millions of workers who have risked much to try to unionize. Thousands are doing it today. And so little acknowledgement of those who have done it and succeeded. They number a million and a half. How do I know that? I know it from my own experience; it’s the work with which I have been immersed for those 40 years. And I know it by virtue of simple arithmetic. The 3.5 million members by which labor has shrunk is net. I simply added the net...

Chris Christie Counts on Public Amnesia

With his newfound support for expanding New Jersey's rail capacity, the governor hopes no one remembers that he killed an earlier federally subsidized project that would have done exactly that.

(AP Photo/Julio Cortez)
(AP Photo/Julio Cortez) New Jersey Governor Chris Christie endorsed a plan to expand his state's rail capacity with a federally subsidized project when he ran for office, and then opposed it when he took office. Now he's endorsed a rail-expansion plan once again. Here, Christie delivers his State of the State address on January 13, 2015. I n 2010, New Jersey Governor Chris Christie took over $3 billion in revenue earmarked for a new rail tunnel under the Hudson River and used it to plug a hole in his budget—leaving the people of his state and the region with no tunnel, and no money left for one in the future. Now Christie has endorsed a new report that includes a recommendation for expanding rail capacity between New Jersey and New York, as if no one would remember that he killed an earlier federally subsidized project that would have accomplished that purpose. In the Winter 2015 issue of The American Prospect , I report the story of Christie’s 2010 decision and its disastrous...

Obama's State of the Union Preview Serves Up Pretty Weak Brew

whitehouse.gov/video screenshot
whitehouse.gov screenshot President Obama delivers remarks about his new community college proposal at Pellissippi State Community College in Knoxville, Tennessee, January 9, 2015. "Make no little plans; they have no magic to stir men's blood and probably themselves will not be realized." —Daniel Burnham I recently got an email invitation from a Democratic congressional office to come to a "watch party" to view President Obama's State of the Union address. His "fourth-quarter priorities," according to the White House-inspired talking points of the message, are "home ownership, free community college, and high-paying jobs." That sounds pretty good. But if you unpack the specifics, the president is offering pretty weak tea. Free community college sounds terrific. Community college is the great American institution of the second chance. Obama proposes to have the federal government cover 75 percent of the cost, if states will participate. This could save students an average of over $3,...

The True Cost of Teach For America's Impact on Urban Schools

Why are school districts paying millions in "finder's fees" to an organization that places people without education degrees to teach in urban schools—even where applications from veteran teachers abound?

(AP Photo/Andy King)
(AP Photo/Andy King) In a February 4, 2011 photo, Erin Gavin, a Teach for America teacher, listens to students during a group discussion with seventh-graders at a Brooklyn Center School in Brooklyn Center, Minnesota. In 2013, Minnesota Governor Mark Dayton vetoed a line item that would have granted $1.5 million to TFA. In debates over education policy in urban school districts, few topics are more contentious than the role played by Teach For America, the national organization that recruits elite college graduates to teach in low-income urban and rural schools for two years. It is not uncommon to hear veteran teachers, who majored in education and often have advanced degrees, complain that their profession is diminished by what they see as a preference for TFA recruits who did not study education. Parents are heard to question the qualifications and commitment of TFA’s novice educators, given the assumption that their sign-up for a two-year stint suggests only a fleeting interest in...

Intrigue: Doth Chuck Schumer Protest Too Much When Called 'Enabler' of Bad Budget Deal?

(AP Photo/Manuel Balce Ceneta)
(AP Photo/Manuel Balce Ceneta) Sen. Chuck Schumer, Democrat of New York, talks on a phone as he walks from the Senate subway on Capitol in Washington, Friday, December 12, 2014. This article originally appeared at The Huffington Post . L ast week, I wrote a piece lamenting the fact that so many Democrats had voted for a budget package that gutted a key provision of the Dodd-Frank Act. The so called swaps push-out provision, now repealed, required banks to separate their speculative business in derivatives from depository banking covered by government insurance and further protected by the Federal Reserve. The broader budget deal, technically a continuing resolution to keep the government funded through next September, also cut a lot of needed public spending and added several odious riders, including one that raises the ceiling on individual campaign contributions to party committees about tenfold. Had Democrats resolutely opposed the deal, I argued, it would have revealed Republicans...

The Great Budget Sellout of 2014: Do We Even Have a Second Party?

The Democrats not only lost this vote on issues they allegedly care about; they lost their role as a credible opposition.

(AP Photo/J. Scott Applewhite)
(AP Photo/J. Scott Applewhite) For in the great budget sellout of December 2014, fully 57 House Democrats voted with the Republicans to narrowly pass this deal. Key Senate Democrats close to Wall Street, such as Chuck Schumer of New York, shown here, were its enablers. This article originally appeared at The Huffington Post . I n principle, Saturday's vote to keep the government open should be the perfect curtain-raiser for the political debates between now and the 2016 election. As their price for averting a government shutdown, Republicans demanded and got a gutting of one of the most important provisions of the Dodd-Frank Act, preventing banks from speculating with government insured money. Agencies hated by Republicans such as the Environmental Protection Agency took big cuts, and a rider was inserted permitting "mountaintop removal" coal mining once again. Another extraneous provision demanded by conservatives permits massive increase in individual campaign contributions. The IRS...

Progressives Just Lost a Fight On the Budget. So Why Are They So Happy?

(AP Photo/Evan Vucci)
O ver the weekend, the "Cromnibus" budget was passed by a coalition that included the GOP leadership and the Obama White House. Neither conservative Republicans nor liberal Democrats were happy with what was in it. So why is it that the conservatives are feeling bitter and betrayed, while the liberals seem positively elated, despite the fact that they both lost? We don't need to work too hard to understand the conservatives' reaction. The budget doesn't stop President Barack Obama's executive actions on immigration, and Republican leaders decided not to force another government shutdown in a vain attempt to do so. As usual, the conservatives are convinced that John Boehner and Mitch McConnell are wimps who do nothing more than bide their time between capitulations. But what explains the liberal reaction? For the first time in this presidency, liberal Democrats feel as though something like a coherent bloc, outside of and sometimes in opposition to the White House, is beginning to form...

Brinksmanship and the Return of Financial Crisis

A government shutdown once again loomed, and familiar deadlines and ultimatums flew around Washington. And Congress just used the threat to loosen the rules created in the wake of the financial crisis, a victory for Wall Street banks in their constant and well-funded campaign against reform. The rules they have targeted are designed to reduce the risk of another financial meltdown, like the one that drove us into the Great Recession and could have been much worse. Though the repeal has been styled by some as a technical amendment, nothing could be farther from the truth. Think about the best way to decide legislative policy in the devilishly complex and risk-laden area of derivatives. These are the financial contracts that brought down AIG, the event that triggered the crisis. You might imagine careful deliberation and debate, leading to a thoughtful vote in Congress in which elected representatives must stand up and be counted so that they could be held responsible for a difficult...

Will D.C.'s Pot Legalization Fall Prey to Meddling Congress?

Under the Capitol dome, Republicans have been blocking the will of District voters for years. Now there's a new target.

"Plantacja" by A7nubis - Own work. Licensed under GFDL via Wikimedia Commons
It’s not like Representative Andy Harris didn’t warn us. When District of Columbia voters last month overwhelmingly passed Initiative 71, the ballot measure to legalize marijuana in the District, the Maryland Republican threatened to use “all resources available to a member of Congress to stop this action.” And when it comes to preventing D.C. from exercising home rule, the arsenal of available resources is quite well stocked. Harris, the origin story of whose marijuana vendetta must be a Maureen Dowd–style special-brownie overindulgence that left him shattered, has for the past year made it his personal mission to prevent the people who didn’t vote for him from getting what they voted for. His latest nefarious plot is a rider, attached to the 1,600-page budget deal released Tuesday night, which prohibits D.C. from using its funds to enact the legalization of marijuana. The bill also continues the amendment that blocks D.C. from using its own locally raised taxes to fund abortions for...

Did Democrats Get Hosed on the Budget Bill?

Merry Christmas to me... (Flickr/Speaker John Boehner)
Once again, Democrats had to step in and save John Boehner from a humiliating defeat that would lead to a government shutdown (67 Republicans voted against the bill; the 57 Democrats who voted in favor pushed it past a majority). There were complicated coalitions facing off; on one side you had Boehner and the White House trying to pass it, while on the other you had liberal Democrats joining with conservative Republicans in opposition. The general conclusion in the press is well summed up by articles like this one , noting that while the liberals failed to stop the bill, this is nonetheless a potentially seminal moment, because they went against the White House, and vocally so. The question is whether this signals an important rift that will have real practical consequences in the next two years and beyond. That is important, but before we get there, there's a substantive matter we need to take note of. This budget bill was cobbled together in haste, but there was time to throw in...

How Badly Do Republicans Want Tax Reform? (Maybe Not That Badly)

(AP Photo/J. Scott Applewhite)
(AP Photo/J. Scott Applewhite) House Ways and Means Committee Chairman Representative Dave Camp, Republican of Michigan, speaks to reporters on Capitol Hill in Washington, Wednesday, April 9, 2014. I f there's one major issue on which everyone in Washington seems to believe the White House and congressional Republicans might be able to agree to do something ambitious in the next two years, it's tax reform. A significant overhaul of the tax code hasn't happened in many years, and there are some areas of agreement between the two sides. Republicans supposedly want to show they can govern as the party in control of Congress, and President Barack Obama would like to obtain at least one significant legislative achievement in his second term. Big business, which has the ear of both parties, is eager for it. So is it going to happen? The answer depends, it would seem, on the tender emotions of Republicans, who are already complaining that tax reform might have to be scrapped if Obama is mean...

Red State, Blue State: Polarization and the American Situation

The country is stuck but it is not stationary. Some things are changing—just not at the federal level.

(Map: Angr/Wikimedia Commons; Flag: AP Photo/David J. Phillip)
(AP Photo/David J. Phillip) A racing fan waves an American flag as they wait for the Formula One U.S. Grand Prix auto race at the Circuit of the Americas, Sunday, November 2, 2014, in Austin, Texas. This article appears under the title "The American Situation" in the Fall 2014 issue of The American Prospect magazine. A merica, it seems, is stuck—unable to make significant progress on critical issues such as climate change, rising economic inequality, and immigration. To explain that inaction, people often point to political polarization. Democrats and Republicans, liberals and conservatives, are now so sharply opposed to each other that they are unable to find common ground. But while the country is stuck, it is not stationary. Some things are changing; it’s just not at the federal level that the changes are emerging. Polarization leads to stalemate only under certain circumstances—when the two sides in a conflict are closely balanced, and political institutions and procedures (such...

Tragedy, Privation and Hope: Joy Boothe's Inspiring Journey to Moral Monday

Horrifically orphaned and raised with prejudice, she built a house and a new life with her own hands. Now hers are among many building a movement for justice.

©Jenny Warburg
©Jenny Warburg Joy Boothe (in black pants) at a sit-in outside the office North Carolina Senate President Pro Tempore Phil Berger in June 2014, protesting Republican education cuts. W hen Joy Boothe showed up at last week’s Moral Monday rally in her hometown of Burnsville, North Carolina, she was fighting both sleep- and sun-deprivation. Boothe had just driven in from Asheville, 35 miles away, where her husband was recovering from a double knee replacement. “Despite my fears of leaving my husband’s hospital room for the first time in four days,” she told the small crowd gathered in the town square, “I’ve come to stand with you today. It’s that important. It’s that important. ” Boothe, a vice president of the local NAACP branch, was referring to the ongoing political upheaval in Raleigh, the state capital, four hours east of this small mountain town. There, an emboldened Republican legislative majority had cut unemployment benefits, turned away federal Medicaid funds, slashed education...

In Political System Disconnected From Society's Ills, Remedies Pushed to Fringes of Public Debate

(Kike Calvo via AP Images)
(Kike Calvo via AP Images) More than 100,000 people march through midtown Manhattan on Sunday, Sept. 21, 2014 as part of the People's Climate March, a worldwide mobilization calling on world leaders meeting at the UN to commit to urgent action on climate change. F or half a century beginning with Franklin Roosevelt, there was a direct connection between the problems that afflicted American society and the remedies on offer from our democratic system. High unemployment? The New Deal, the World War II mobilization, and the postwar boom took care of that. Stagnant wages? With unions, growing productivity, minimum wage laws, and other regulation of labor standards, American real wages tripled. Education? The G.I. bill, massive investment in public universities, community colleges, and later in public elementary and secondary education produced a better educated and more productive population. And until the 1980s, public higher education was practically free. The exclusion of blacks from...

Pages