Economy

Be Like Janet, Dammit

AP Photo/Susan Walsh

Speaking about the U.S.-Mexico border in San Diego, California on Monday, Secretary of Homeland Security Janet Napolitano assured the audience that "the border is secure ... I believe it is a safe border," an assessment she reprised yesterday in a Senate hearing on immigration reform. "I often hear the argument that before reform can move forward we must first secure our borders, but too often the ‘border security first’ refrain simply serves as an excuse for failing to address the underlying problems," Napolitano said. "Our borders have, in fact, never been stronger."

Inaugural versus SOTU

Rex Features via AP Images

President Obama did not say last night that “the state of the Union is strong” a favorite phrase used in past State of the Union speeches. Instead he said, “The state of the Union is stronger.” That phrase points away from “the rubble of crisis” and toward a brighter future. In that respect, the address shared much in common with the president’s Inaugural, which presented a broad, liberal vision for Barack Obama’s second term and set policy goals for years down the road. In his address to the join session of Congress, the president was able last night to lay out more specific proposals than he could in his Inaugural speech.

Republicans Will Appeal to Latinos by Opposing Policies They Support

Alex Campbell / Medill News Service

In something that shouldn’t come as a surprise, at all Republicans have already announced their opposition to a minimum-wage hike. Here’s House Speaker John Boehner, throwing cold water on the proposal:

“I’ve been dealing with the minimum wage issue for the last 28 years that I’ve been in elected office,” Boehner told reporters at a press conference, arguing that raising the minimum wage would hurt people trying to climb the “ladders of opportunity” that Obama mentioned in his speech.

How Would a Minimum-Wage Increase Affect the Economy?

401K / Flickr

Besides universal preschool, the most overtly progressive policy proposed by President Obama last night was a large minimum-wage hike, from the current rate of $7.25 per hour—instituted in 2009—to a new rate of $9 per hour. Not only is this higher than the minimum wage in every state other than Washington, but when adjusted for inflation, it’s the highest minimum wage since 1981.

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.

Pages