Economy

Stephen Lerner's 2011

“We must expand from one-day marches and demonstrations to weeks of creative direct action and activities,” wrote Stephen Lerner in New Labor Forum, a quarterly left-labor journal, several weeks before Occupy Wall Street took shape. One way to do that, he continued, “is to build these kinds of longer and more involved protests around students and community groups that have the energy and willingness to take time off from their day-to-day lives to engage in more intense activity (which includes the risk of getting arrested.)”

The SEC Does Wall Street's Bidding

The SEC Doing Wall Street’s Bidding Robert Kuttner

In the right-wing revisionism of what caused the financial collapse, Fannie Mae and Freddie Mac are leading villains with the federal Community Reinvestment Act in a supporting role. Supposedly, Fannie and Freddie lowered their standards, purchased lots of subprime mortgages, and were major contributors to the housing bubble and crash. In this fable, government pressured banks to make unsound mortgage loans to meet the goals of CRA.

Loveable Extremist

CEDAR RAPIDS, IOWA—Adoring crowds packed rooms to capacity across Iowa the last two days to hear the leader of their revolution. Dr. Ron Paul, as he his loving referred to by his supporters, went on an eight-stop jaunt through eastern Iowa to rile up his supporters two weeks before they vote in the caucuses. He is poised to win the 2012 Iowa caucuses: He leads in the latest polls, has a developed campaign infrastructure, and can count on true believers to show up to vote on January 3.

What? We Won?

If there's one thing liberals know about their representatives in Washington, it's that those Democrats are a bunch of wimps. All Republicans have to do is draw back their fists, and Democrats will flinch. "What if they criticize us???" they whine, as they cave in on progressive principles again and again. That's the story liberals tell, and much of the time it's true.

House GOP's White House Stocking Stuffer: The Payroll Tax Cut

The cave-in by the House Republicans on the payroll tax is on terms that keeps this conflict going well into the election year--and on terms very favorable to Barack Obama and the Democrats. For the GOP, the two-month extension of the payroll tax cut is the worst possible politics.

First, they look weak (because they are weak); and second, the same drama will be replayed next year with the same outcome. Raising taxes on millionaires rather than cutting Social Security or Medicare, or hiking payroll taxes, wins every time.

It's a Wonderful Lie

Bank of America and J.P. Morgan Chase's ad campaigns portray the institutions as your friendly neighborhood credit union.

At a time when legislators, consumer advocates and the Occupy movement batter big banks for their questionable business practices, J.P. Morgan Chase and Bank of America have gone soft and fuzzy. The nation’s two largest banks are running saccharine television commercials that portray the massive multinationals as the Bailey Building and Loan Association.

Bank of America recently rolled out its “Opportunity” campaign to highlight the company's nationwide bid to lend a hand—i.e., money— to small businesses. (Ironically, It’s A Wonderful Life director Frank Capra modeled the Bailey's bank on BoA.)

Showdown at the Docks

Occupy Wall Street protesters celebrated the movement's three-month anniversary by taking the fight to major ports.

Protesters at the Port of Oakland Monday. Photo/Aaron Bady

On Monday, occupiers set out to shut down ports across the West Coast.  Targets included SSA, which is largely owned by Goldman Sachs, and the Port of Longview, which multinational EGT is trying to operate as the West Coast’s only port without members of the International Longshore and Warehouse Union (ILWU).  The actions, which shut down operations at Longview, Oakland, and Portland, were opposed by ILWU leadership.  They led to intense debate among and between occupiers and unionists over tactics—who the blockades hurt, whether they’re worth the legal risks—and democracy, namely, how democratic the ILWU and the Occupy movement each are, and whether workers should have a veto over actions where they work.

Double Standards Galore

I happened to be flying on American Airlines the morning after the company declared bankruptcy. Exactly nothing bad happened to my flight. Nobody passed the hat to buy aviation fuel. The flight attendants offered the same dismal snacks. It was business as usual.

American will get to stiff its creditors, its employees, its pensioners, and sail happily onward, not even required to replace its managers. Chapter 11 filings are standard operating procedure when necessary in corporate America. In its full-page ads promising no disruption of service, American managed to avoid even the word "bankruptcy."

How President Obama's Economic Message Could Backfire in 2012

If there was anything notable about President Obama’s speech in Osawatomie, Kansas last week, it was the extent to which he attacked economic inequality in the United States, and its deletrious effects on income mobility:

[O]ver the last few decades, the rungs on the ladder of opportunity have grown farther and farther apart, and the middle class has shrunk.  A few years after World War II, a child who was born into poverty had a slightly better than 50–50 chance of becoming middle class as an adult.  By 1980, that chance fell to around 40%.  And if the trend of rising inequality over the last few decades continues, it’s estimated that a child born today will only have a 1 in 3 chance of making it to the middle class. 

Legislative Legerdemain

AP Photo/Yves Logghe

So you think congressional Republicans are the only right-wingers who like to append their pet (and sometimes, wedge) issues—like the Keystone pipeline—to must-pass legislation like the payroll tax-cut extension? Guess again—it looks to be a trans-Atlantic syndrome.

Important Election News from Across the Pond

Over the last week, there has been a torrent of stories illustrating the extent to which the Obama re-election team is observing the Republican presidential contest and developing their strategy for the general election season. And while I’m sure that the Obama team has devoted a fair amount of attention to events in the GOP, I’m also sure that they’ve devoted even more time to events across the Atlantic, where—as Carmel Crimmins and Gavin Jones note for Reuters—austerity has pushed Europe to the edge of another recession:

Britain Hesitates

David Cameron's veto of an EU integration plan reveals England's deep skepticism about the union.

AP Photo/Yves Logghe

European leaders went one better this time. Not content with failing to resolve the debt crisis tearing through the eurozone and threatening a global recession, they have now managed to create a new source of instability: the rift between Britain and the rest of the European Union, whose consequences may prove to be momentous indeed.

Elizabeth Warren: Bailout Queen

Karl Rove’s latest ad has to set an all-time record for hypocrisy and factual inversion. The ad actually manages to blame Elizabeth Warren for the bank bailouts.

As anyone who hasn’t spent the past three years in a cave must know, Warren has been the nation’s single most effective, relentless, and brave critic of the bailouts. It was that service as chair of the Congressional Oversight Panel that made her one of America’s most admired public leaders.

The Wrong Fix

AP Photo/Bernd Kammerer

Yesterday, both Bob Kuttner, here in the Prospect, and I ,in my Washington Post column, noted that the deal that German Chancellor Angela Merkel and French President Nicolas Sarkozy struck to save the Eurozone will inflict years of austerity on European nations that are already mired in depression. Spain, for instance, has an unemployment rate of about 20 percent and a youth unemployment rate that is approaching a mind-boggling 50 percent. It needs a massive Keynesian jolt to its economy, not budgetary constraints that will condemn it to a decade or quarter-century of penury.

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