The Obama Administration

Part-Time America

AP Images/Matt Slocum
Of the 963,000 jobs created in the past six months, according to the Bureau of Labor Statistics’ (BLS) Household Surveys, 936,000 of them are part-time. That doesn’t mean that just 27,000 of the people hired on to new jobs got full-time work. The total for part-time jobs includes both newly created jobs and formerly full-time gigs that were cut-back to part-time, and the BLS doesn’t pose the questions that would enable it to quantify these two kinds of new part-time jobs. But factoring in both kinds, we do know that the net number of full-time jobs in America has risen by just 27,000 since the end of January. One reason that the number of full-time jobs is so abysmally low is Obamacare’s employee mandate, which stipulated that employers with 50 or more workers either had to provide all such workers who put in at least 30 hours a week with health insurance, or pay a penalty that would help defray the government’s costs for providing subsidized benefits. The administration announced...

The Long Road to a Decent Economy

AP Images/Carolyn Kaster
To underscore a weeklong initiative by President Obama on behalf of rebuilding the middle class, the latest figures on GDP growth, released Thursday, and on job growth, made public Friday, show just how far from a healthy middle class economy we are. Revised figures show that GDP growth fell to a rate of just 1.4 percent in the first six months of 2013, even less than last year’s dismal rate of 2.2 percent. These numbers are not enough to create an adequate supply of jobs, much less good jobs, much less wage growth. And sure enough, when the employment numbers for July were released on Friday, the grim trend was confirmed. Just 162,000 jobs were added in July, and most of them were relatively low-wage jobs. Average earnings actually fell. At this rate it will take another six years to get unemployment back to pre-2008 levels according to the Economic Policy Institute, and more than a decade according to the Hamilton Project. The official unemployment rate dropped slightly, from 7.6 to...

The Rise and Fall of a "Scandal"

He never quite got what he wanted. (Flickr/stanfordcis)
Remember the IRS scandal? Haven't heard much about it lately, have you? Yet for a while, it was big, big news, and so often happens, the initial blockbuster allegations were everywhere, penetrating down to even the least attentive citizen, while the full story, which turned out to be rather less dramatic, got kind of buried. News organizations aren't in the habit of shouting, "BREAKING: That Thing We Said Was Huge Last Week? Eh, Not So Much." Brendan Nyhan has looked at how this "scandal attention cycle" played out with the IRS and turned it into some charts : What that means in practice is that while pretty much everybody heard that the IRS was "targeting conservative groups," far fewer people have learned that there is now lots of evidence that the IRS wasn't targeting conservative groups (see Alec MacGillis for a good explanation). In the news organizations' defense, one could argue that the allegations were pretty dramatic, so they reported on it a lot when they emerged. But then...

The Obama Administration's Unhealthy Obsession with Whistleblowers

Yesterday saw a mixed verdict delivered to Bradley Manning, who was charged with various crimes under the Espionage Act for leaking classified materials to WikiLeaks. Colonel Denise Lind, who presided over the court-martial, acquitted Manning of the most serious charge brought against him while finding him guilty on 20 of the 21 lesser charges. Lind's ruling is at least a partial victory, acting as a partial break of the Obama administration's overreaching war on whistleblowers. But many aspects of the case remain disturbing. It is notable and welcome that the government could not convince Lind that Manning was guilty of aiding the enemy under the Espionage Act. Since this charge rested on the theory that releasing any information the government would rather keep quiet is "aiding the enemy" by definition, the dangers of convicting Manning can hardly be overstated. The idea that transparency aids the enemy is the same theory behind prosecuting newspapers for publishing the Pentagon...

Not Much, But Better than Nothing

President Obama yesterday in Chattanooga with Amazon workers. (White House photo/Chuck Kennedy)
President Obama offered a "grand bargain" yesterday, and although it wasn't particularly grand, it was a bargain: Republicans would get a lowering of the corporate income tax rate, something they've wanted for a long time, and Democrats would get some new investments in infrastructure, job training, and education. Inevitably, Republicans rejected it out of hand. "It's just a further-left version of a widely panned plan he already proposed two years ago, this time with extra goodies for tax-and-spend liberals," said Senate Minority Leader Mitch McConnell. At this point, Obama could offer to close the E.P.A., eliminate all inheritance taxes, and rename our nation's capital "Reagan, D.C." if Republicans would also agree to give one poor child a sandwich, and they'd say no, because that would be too much big government. Just as inevitably, in-the-know politicos are wondering, why does he bother with this stuff if he knows what the result will be? Didn't we get enough of this I'm-the-...

The Commodities Market: A Big Bank Love Story

The Fed loosened rules to allow banks to buy commodities, driving up everyday prices for consumers. Who the next chair is matters if these kinds of practices are ever to be stopped. 

AP Images/Carolyn Kaster
AP Images/Charles Dharapak W ho becomes the next Federal Reserve chair matters, not only because of the implications for economic and monetary policy, but because the Fed remains one of the nation’s chief financial regulators. There are dozens of policies, some we don’t even know about, over which the Fed wields critical influence. While the past year has seen a small but important shift toward tighter controls, particularly on the largest Wall Street institutions, all of that could change if President Barack Obama selects another deregulator in the Greenspan tradition. A perfect example of the Fed’s centrality to the financial regulatory space came last week, when a Senate hearing focused on an unseemly practice that the Fed perpetuated and has the power to stop. As reported in The New York Times and elsewhere, large investment banks like Goldman Sachs have purchased warehousing facilities for aluminum and shuffled the product from one facility to another. When a purchaser buys the...

Kerry's Heavy Lifting Begins on Israel-Palestine

Preliminary peace talks begin in Washington next week amid hopes that the U.S.'s efforts will engender much-needed change in the region. 

 

AP Images/ Fadi Arouri
Defying the skeptics, Secretary of State John Kerry announced last Friday that Israelis and Palestinians had “established a basis” to return to peace talks, which have stalled since 2010. Kerry is wisely keeping a close hold on details so as not to create opportunities for spoilers in advance of negotiations actually taking place, but the latest is that preliminary talks, in which the Palestinians will be represented by longtime negotiator Saeb Erekat and the Israelis by Justice Minister Tzipi Livni and Netanyahu’s “personal envoy” Yitzhak Molcho , will begin in Washington next Tuesday . Now that new talks are imminent, critics are hard at work detailing the challenges ahead. As Daniel Levy noted in a recent piece, “Predicting the difficulties for Israeli-Palestinian peace negotiations is about as challenging as predicting the media interest in a British royal birth.” The more important question now is whether, having successfully brought the parties back to the table, Kerry will be...

Is Obamacare a Republican Job Creator?

flickr/divaknevil
AP Photo A lmost 50 years ago, Congress passed and Lyndon B. Johnson signed the law establishing Medicare. It was, soon, wildly popular—so much so that to this day Republican opposition to the program can only be expressed in terms of “saving” Medicare from supposed instability. In the next congressional elections, liberals took a beating—and the Democrats lost the White House in 1968. Scratch that—Democrats lost five of the next six presidential elections. That’s not the only story I could tell like that. Social Security? It passed in 1935, during what turned out to be a very good election cycle for the Democrats. Implementation began after the 1936 election, and the 1938 election began a string of conservative coalition control in Congress that lasted 20 years. Want another one? Let’s try foreign policy. The Cold War was over time a bipartisan policy, but it was the Republicans who were in office when the Cold War ended and the Soviet Union dissolved … a policy outcome universally...

The Privilege of Whiteness

flickr/shaire productions
A s a biracial child who spent part of his youth abroad, Barack Obama learned the feeling of otherness and became attuned to how he was perceived by those around him. As a politician, he knew well that many white people saw him as a vehicle for their hopes of a post-racial society. Even if those hopes were somewhat naïve, they came from a sincere and admirable desire, and he was happy to let those sentiments carry him along. Part of the bargain, though, was that he had to be extremely careful about how he talked about race, and then only on the rarest of occasions. His race had to be a source of hope and pride—for everybody—but not of displeasure, discontent, or worst of all, a grievance that would demand redress. No one knew better than him that everything was fine only as long as we all could feel good about Barack Obama being black. So when he made his unexpected remarks about Trayvon Martin on Friday, Obama was stepping into some dangerous territory. By talking about his own...

The Next Phase of the Obamacare Battle Begins

President Obama speaking yesterday on health care. (White House photo by Chuck Kennedy)
We're beginning a new phase of the battle over Obamacare—and the fact that we can continue to refer to it as a "battle" tells you something—one that in some ways takes on the appearance of an electoral campaign, with television ads, media events, PR stunts, and a universal assumption that the whole thing is zero-sum. If anything related to Obamacare goes well—like, say, people getting health insurance at affordable prices—then that's bad for Republicans and something they'll do what they can to stop. What we have here is something truly unprecedented: an opposition party not just insisting that a significant government program was a bad idea, not even just hoping that in its implementation it doesn't work, but committing itself to actively working to make sure the program fails and that as much human misery as possible can be created along the way, so that eventual repeal of the program will become possible. The Obama administration is facing a huge administrative task, laid on top of...

Transatlantic Trouble

How much has America's spying on European allies damaged the transatlantic trade deal once thought to be one of Obama's best opportunities for shaping his foreign policy legacy?

AP Images/Charles Dharapak
Recent revelations that the U.S. government had been spying on European allies continue to rile public sentiment on the continent, just as officials from both sides of the Atlantic sit down for talks in Washington on the Transatlantic Trade and Investment Partnership (TTIP), a wide-ranging deal that the Obama administration has been pushing as a key foreign policy initiative. If successful, TTIP would deepen the economic ties between North America and the European Union and represent the biggest trade deal in over two decades. But with public trust in the United States ebbing throughout the core countries of the European Union, President Obama will probably have to do more than simply downplay the scandal as a hyped-up, misunderstood policy detail. Old school Atlanticists have long touted the wisdom of deeper economic integration between the United States and the European Union, which is already vast and significant. U.S.-EU trade in goods and services totals about one trillion...

Three Things You’ve Got Wrong about the Filibuster

AP Photo/Columbia, File
AP Photo/Henry Griffin W ith the Senate showdown on executive branch appointments—and eventually filibuster rules—moving towards the moment of truth, it’s a good time to revisit some of the myths surrounding one of the hallowed chamber’s most perplexing procedures. Here are three: 1. Filibusters ≠ Cloture Votes Really: Filibusters are not the same as cloture votes. All those charts and fact sheets you’ve seen showing the explosion of filibusters in 2009? Well, it happened, but the explosion was due to an increase in cloture votes, which are—get it now?—not the same as filibusters. Cloture—or cutting off debate on a bill, nomination, or motion, which by rule in the Senate requires three-fifths of all Senators—is one way the majority can end a filibuster. But it’s not the only way. Filibusters can end through attrition (that is, the minority tires of doing it); through cutting a deal on some minority demand, such as allowing one nomination to go through while another is withdrawn; or...

How the Conservative Media Are Eating Up the Zimmerman Trial

George Zimmerman during his interview with no-nonsense journalist Sean Hannity.
George Zimmerman's trial in the shooting of Trayvon Martin is coming to a close. For what it's worth, I think he'll probably get acquitted, since 1) the lack of any eyewitnesses leaves room for doubt, and 2) my impression is that in Florida it's perfectly legal to pursue somebody, confront them, and then when the confrontation turns physical and you begin to lose the fight, shoot them in the chest. You know—self defense. In any case, conservative media are feasting on the Zimmerman trial (as are some other media). Their basic storyline goes like this: Trayvon Martin was a thug. George Zimmerman's gated community was beset by roving gangs of vicious black teen criminals. Zimmerman was in the right. And most critically, this whole thing is being drummed up by racial provocateurs, most especially Barack Obama and Eric Holder, to continue their ongoing war on white people, who are the real victims of racism in America today. Let's take, for instance, this little story. After Martin's...

Going Abroad With Dodd-Frank

Come Friday, the hope reformers once had that risky trades made overseas by American banks might be regulated is likely to be crushed. Democrats cozy with Wall Street are just fine with that. 

AP Images/Harry Hamburg
AP Images/Harry Hamburg One of the biggest catastrophes of the 2008 financial crisis came out of the AIG Financial Products division, whose disastrous trades eventually led to a $182 billion bailout of the insurance company. One of the largest financial market blowups since the crisis came from the Chief Investment Office of JPMorgan Chase , where similar trades backfired and cost the company at least $6.2 billion. The common thread? Both of these offices, despite being subsidiaries of American corporations, were based in London, and they enjoyed a degree of autonomy, both from their management teams and from federal regulators, who were unable to recognize the outsized risk until it was too late. The Dodd-Frank financial reform law intended to end the practice of financial industry behemoths shifting away their riskiest practices from U.S. regulators’ prying eyes. But a rule that would subject the $630 trillion global derivatives market to the same regulations, no matter the location...

Under Obamacare, Millions Will Die

Barack Obama may be trying to kill this woman's son.
I have questions. For instance, are Charles and David Koch aliens from the planet Fnerzblax 6, come here to feast on the entrails of Earth humans to give them strength for their coming war with the barbarians of Fnerzblax 4? We don't know, and that's what has me so concerned. I ask because Americans for Prosperity, the group through which the Kochs channel much of their political activism, is initiating a new television campaign to get people afraid of and angry about Obamacare, and this seems to be the method of the campaign. The first ad, called "Questions," asks whether Obamacare is going to take money from a worried-looking young mother and deprive her sick child of the care he needs to survive. Not that it would truly do these things, but hey, she's just asking: Beyond the just-asking format, there's a preview here of something else we'll be seeing as Obamacare gets implemented over the next couple of years. Every problem that anyone has with anything related to health care will...

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