Economy

The Return of the Balanced Budget Amendment

Flickr/Gage Skidmore

Senate minority leader Mitch McConnell says Senate Republicans will unanimously support a balanced-budget amendment, to be unveiled Wednesday as the core of the GOP’s fiscal agenda.

There’s no chance of passage so why are Republicans pushing it now? “Just because something may not pass doesn’t mean that the American people don’t expect us to stand up and be counted for the things that we believe in,” says McConnnell.

The President's Dream State

AP Photo/Charles Dharapak

By any measure, President Obama’s first term was consequential. In four years, he signed an $800 billion stimulus and infrastructure investment program, laid the foundation for universal health insurance, secured new regulations on the financial sector, repealed Don’t Ask Don’t Tell, and put the United States on the path back to economic recovery.

Still Waiting for That GOP Fever to Break

Photo of Bay Bridge construction courtesy of Caltrans

Word is that in tomorrow's State of the Union address, Barack Obama is going to propose some new infrastructure spending as a way of not only boosting the economy in the short term by creating jobs in areas like construction, steel, concrete, those little plastic anchors you put around screws when you're putting them in brick, and so on, but also as an investment that pays long-term dividends in the form of bridges that work and sewer pipes that don't burst. As Neil Irwin points out, given the large number of construction workers sitting idle and the incredible fact that the U.S. can now borrow money at negative interest—something that won't be true forever—it would be crazy for us not to take advantage of this moment and start doing some long-overdue repairs. "One can easily imagine a deal," Irwin writes. "Democrats get their new infrastructure spending, and Republicans insist on a structure that requires private sector lenders to be co-investors in any projects, deploying money based on its potential return rather than where the political winds are tilting." I'm with Kevin Drum on this: Why on earth would we expect Republicans to go along?

Mass Joblessness Is Still a Problem—Someone Tell Washington

kanu101 / Flickr

The unemployment rate is a decent measure of where the economy stands, but it doesn’t provide a full picture of joblessness—it only measures the employment status of people looking for a job. For a broader sense of unemployment—and its affect on everyday life—you have to dig deeper. A recent study from Rutgers University, for example, provides a sobering look at the broad impact of persistent joblessness.

Jobs and Growth, Not Deficit Reduction

Flickr/Andreas Klinke Johannsen

Can we just keep things in perspective? On Tuesday, the President asked Republicans to join him in finding more spending cuts and revenues before the next fiscal cliff whacks the economy at the end of the month.

Yet that same day, the Congressional Budget Office projected that the federal budget deficit will drop to 5.3 percent of the nation’s total output by the end of this year. 

Debt Reduction Is Hurting the Economy

Wall Street Journal

For left-leaning writers, at least, it’s almost cliché to note the extent to which the press defers to deficit hawks, despite clear evidence that deficits are not a pressing problem for the United States. Even still, it’s worth noting when reporters pass along received wisdom, especially when we have fresh data to show the folly of Washington’s obsession with deficit reduction. To wit, here’s The Wall Street Journal with a piece that just cedes the idea there’s a deficit problem and it requires further “belt tightening” from the federal government:

Wonder Warren

AP Photo/Win McNamee

Since the start of the new Congress, liberal Democrats have anxiously awaited senior Senator from Massachusetts Elizabeth Warren’s initial moves. Celebrity entrants into the Senate—from Hillary Clinton to Al Franken—have tended to take a modest approach, immersing themselves in committee work and issues of local importance, building relationships with their colleagues, and operating as a “workhorse, not a show horse.” By contrast, Warren said during the campaign that she wanted to use her new position as a platform for her ideas. And one of her first actions suggests she will spend her time as Senator much the way she did as chair of the TARP oversight panel and at the Consumer Financial Protection Bureau: shedding light on the harm caused by unscrupulous financial interests.

Going Back Too Soon

Without pay, many new parents can’t take the time off granted them by the FMLA.

AP Photo/Greg Gibson

Perla Saenz went back sore and exhausted just four weeks after giving birth—and two weeks after the incision from her C-section reopened. (She had heard her older child cough in the night and instinctively tried to pick him up, forgetting for a moment her doctor’s warning against lifting anything heavier than ten pounds.) Weak and sometimes feverish, she often found herself clutching the counter for support.

Labor Wins—in China

Flickr/notebookaktuell

Is China moving ahead of the United States on worker rights? According to a report on Monday’s Financial Times, it may be doing just that.

The FT reports that Foxconn, which employs 1.2 million Chinese workers who make the bulk of Apple’s products, along with those of Nokia, Dell, and other tech companies, has decided to allow its workers to hold elections to select their union leaders. This is a radical departure from past practice in China, where unions are run by the government—that is, the Communist Party—which customarily selects the union leaders. Often, the leaders selected under this system are actually the plant managers.

What Would Jack Lew Do?

AP Photo/Win McNamee

Sometime this month, the Senate is expected to grill President Obama’s pick for Treasury secretary, Jack Lew, who if confirmed will replace outgoing secretary Timothy Geithner. As the president’s chief of staff, Lew has been influential in the budget battles President Obama fought with House Republicans in the past year and has a deep knowledge of how government spending works. Conventional wisdom is that the president chose Lew to have a strong ally as the White House battles with congressional Republicans over spending and taxes. But with only a short stint at Citigroup amid a life of public service, there isn’t a deep record on what he thinks about financial reform.

The First Progressive Revolution

Flickr/Mike Chaput

Exactly a century ago, on February 3, 1913, the Sixteenth Amendment to the Constitution was ratified, authorizing a federal income tax. Congress turned it into a graduated tax, based on “capacity to pay.”

It was among the signal victories of the progressive movement—the first constitutional amendment in 40 years (the first 10 had been included in the Bill of Rights, the 11th and 12th in 1789 and 1804, and three others in consequence of the Civil War), reflecting a great political transformation in America.

Jobs on Jobs on Jobs on Jobs

Steve Benen, Maddow Blog

According to the latest report from the Bureau of Labor Statistics, the economy created 157,000 jobs in January, a solid number, though behind what we need to see a robust recovery. More important, as always, are the revisions. November’s job growth was revised to 247,000 (up from 161,000) and December’s was revised to 196,000 (up from 155,000). 

These are big revisions, and when analyzed as part of a trend, it’s clear that the government was been underestimating job growth for most of 2012, to the tune of 28,000 jobs a month.

The Geography of Abortion Access

Mapping the national decline in abortion providers

Flickr/womenscampaignforum

As a collective unit, Americans are pretty keen on the civics-class idea that life in the 6,106,012 square miles of God’s green earth that is the USA is more or less equitable for the 313,847,465 people who have hunkered down to live on the craggy coasts, fruited plains, and purple mountains filled with majesty. We’ve got proportional representation in Congress, a legal system that presumes innocence before guilt, and the ability to walk into any 7-Eleven to get a Slurpee and slice of pizza that will cost you $4 and a year of your life, which has to say something about the level playing field we’ve got going, right?

The Wrong Kind of Immigration Spending

AP Photo/Tuscaloosa News, Robert Sutton

The Republican party's abysmal performance among Latino voters in the 2012 election, and the ensuing realization among many in the GOP that they need to change their stance on immigration or risk more defeats, have made it a real possibility that passage of the first comprehensive immigration reform bill in over a quarter-century could happen soon. The debate will no doubt be intense, so as it begins, some facts about the recent and not-so-recent history of immigration in America will be important to keep in mind.

Pages