From now until Nov. 2, the Republican Party will be the party of unemployment. The logic is straightforward: The more people who are unemployed on Election Day, the better the prospects for Republicans in the fall election. They expect, with good cause, that voters will hold the Democrats responsible for the state of the economy. Therefore anything that the Republicans can do to make the economy worse between now and then will help their election prospects.
While it might be bad taste to accuse a major national political party of deliberately wanting to throw people out of jobs, there is no other plausible explanation for the Republicans' behavior. The Republicans have balked at supporting nearly every bill that had any serious hope of creating or keeping jobs, most recently filibustering on bills that provided aid to state and local governments and extending unemployment benefits. The result of the Republicans' actions, unless they are reversed quickly, is that hundreds of thousands more workers will be thrown out of work by Election Day.
The story is straightforward. Nearly every state and local government across the country is looking at large budget shortfalls for their 2011 fiscal years, most of which begin July 1, 2010. Since they are generally required by state constitutions or local charters to balance their budgets, they will have no choice except to raise taxes and/or make large cutbacks and layoff workers to bring spending and revenue into line.
State and local governments have cut their workforce by an average of 65,000 a month over the last three months. Without substantial aid from the federal government, this pace is likely to accelerate. The Republican agenda, in blocking aid to the states, may add another 300,000 people to the unemployment roles by early November.
The blockage of extended unemployment benefits promises similar dividends. Unemployment benefits are not just about providing income support to those who are out of work, they also provide a boost to the economy. Since unemployed workers generally have little other than their benefits to support themselves, this is money that will almost immediately be spent. The benefits paid to workers are income to food stores and other retail outlets.
Unemployment insurance provides the sort of boost to demand that the economy desperately needs. That is why neutral parties like the Congressional Budget Office or economist Mark Zandi, a top adviser to John McCain's presidential bid, always list unemployment benefits as one of the best forms of stimulus.
Republicans give two reasons for opposing benefits. First, they claim that benefits discourage people from working. Second, they object that the Democrats' proposal will add to the national debt.
On the first point, there is a considerable amount of economic research. Most indicate that, in periods when the economy is operating near its capacity, more generous benefits may modestly increase the unemployment rate. However, they are less likely to have that effect now. The reason is simple: The economy does not have enough jobs. The latest data from the Labor Department show that there are five unemployed workers for every job opening.
In this context, unemployment benefits may give some workers the option to remain unemployed longer to find a job that better fits their skills, but they are unlikely to affect the total number of unemployed. In other words, a $300 weekly unemployment check may allow an experienced teacher the luxury of looking for another teaching job rather than being forced to grab a job at Wal-Mart.
However, if the teacher took the job at Wal-Mart, then this would simply displace a recent high school grad who has no other job opportunities. That might be a great turn of events in Republican-econ land, but it does not reduce the overall unemployment rate, nor does it benefit the overall economy in any obvious way.
The other argument the Republicans give is that these bills would add to the national debt. For example, the latest extension of unemployment benefits would have added $22 billion to the debt by the end of 2011. This means that the debt would be $9,807,000,000 instead of $9,785,000,000 at the end of fiscal 2011, an increase of the debt to GDP ratio from 65.3 percent to 65.4 percent.
It is possible that congressional Republicans, who were willing to vote for hundreds of billions of dollars of war expenditures without paying for them, or trillions of dollars of tax cuts without paying for them, are actually concerned about this sort of increase in the national debt. It is possible that this is true, but not very plausible.
The more likely explanation is that the Republicans want to block anything that can boost the economy and create jobs. Throwing people out of work may not be pretty, but politics was never pretty, and it is getting less so by the day.
From the Guardian.
http://www.boston.com/business/articles/2010/06/25/farm_jobs_create_seed_for_colberts_work_spoof/
There are enough of these jobs to decrease the unemployment rolls substantially!
And, while they are refusing to increase the budget for the unemployed, they are going ahead with the tax cuts for those earning $200,000 or more.
A deficit is not reduced by limiting the amount of income.......If just one Republican would acknowledge that the size of the deficit is due to 2 wars, subsidized oil corporations and cutting taxes which predominately affect upper income people AND THEN announce ways in which money could be increased in order to reduce the deficit, I would begin to believe that they sincerely want to do something.
"The latest extension of unemployment benefits would have added $22 billion to the debt by the end of 2011. This means that the debt would be $9,807,000,000 instead of $9,785,000,000 at the end of fiscal 2011, an increase of the debt to GDP ratio from 65.3 percent to 65.4 percent." (D Baker)
It's obvious who doesn't want to work in this country - the US Senate! If you can't defeat the bill, then just postpone. If you succeed at doing nothing, take another recess!
GOOD "WORK"! WHO YOU GONNA VOTE FOR???
We're not going to get to any sort of recovery without looking at wage stagnation--the US can't be the world's consumers if most working people have seen lower incomes even after contributing to the huge productivity climb in the 90's and 'aughts. And since people's credit cards are tapped out, the money will have to come from wages. with a fifth of the population unemployed or underemployed, there's no rally on the horizon.
I really don't think anyone in DC understands the stakes here. if consumer spending tanks further and takes down the commercial real-estate sector, we're looking at a full-blown crash. We'll be there if jobs don't start coming back and/or the 99ers are stuck out of any benefit extension.
As for shutting down the exploratory drilling, there's a funny thing at work here--the oil companies in the Gulf don't have the resources to fight more than one big accident at a time. Obama banned exploratory drilling--there's plenty of other unsafe activity taking place.
As for the Space program, I'd think that the deficit hawks would laud him for being realistic about over-extension of the Federal Government's largesse at a time when the economy is in the toilet. But that's me.
Business leaders constantly harp on the 'failures' of government and the need for someone to be business-minded in order to run anything of consequence. But US businesses have had a horrible few decades--GM and Chrysler and a bunch of retailers and computer manufacturers and real estate tycoons have gone belly-up despite all the 'smart' people running them. And many of the 'business' tycoons brought in by Bush (such as 'heckuva job' Brownie) were utterly incompetent.
Nobody graduates from managing a federal job to industry--regardless of their success. And there are success stories.
Republicans have done well to demonize everything about President Obama and many have bought into the Faux news simple minded distortions and lies. Democrats have done a terrible job of projecting competence or taking care of the average American- once their stronghold of support.
The Bigotry on one side and lameness of the other leaves a disillusioned electorate two disappointing choices for now. Regardless of who wins this November, Americans are fed up with these parties and a third party will emerge to focus on the needs of the people and not special interests or big business. I’m not talking about no tea party either but a Declaration of Independents!
Ineptitude is apparently contagious in DC. The Peter Principle's perfect example!
This guy is a total hack.
Would Republicans ding dongs like us to reinstitute Republican George Bushie policies that caused this Recession. That would be like asking the Captain of the Titanic to lead the Navy.
(see the chart here)
http://maxkeiser.com/2010/07/09/double-dips-and-currency-wars/
The Repubs are fortunate to have a few blue dogs as cover.
"In this context, unemployment benefits may give some workers the option to remain unemployed longer to find a job that better fits their skills, but they are unlikely to affect the total number of unemployed. In other words, a $300 weekly unemployment check may allow an experienced teacher the luxury of looking for another teaching job rather than being forced to grab a job at Wal-Mart."
What an disgrace of a comment. So let me get this straight. Working taxpayers have to dole out even more money because that teacher who lost her 100k a year job doesn't want to work at Walmart???? Well tough friggin luck!!!! The economy is trying to restructure itself and extending benefits doesn't let that restructuring happen. How dare this author say this.
99 weeks of welfare payments is enough. You want more, find a way to pay them without adding to the deficit.
Conservatives want poor, homeless desperate fearful subservient serfs for their profit, pleasure and entertainment.
The liberal founding fathers wanted free education for all, including neede3d room and board.
How else do you think a Democratic republic can work?
You need happy, educated, enlightened citizens, not serfs.
the DLC new dems are conservatives,
only some of the Progressive Caucus, Dean, Grayson, Kucinich are real founding father type liberals. And they were against it.
Conservatism mantra is deregulation, the deregulation that caused Swaps to crash the economy.