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Martha Burk

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No More Bull: What Women Need to Know About the Economy and Why it Matters in 2012

Posted: 03/23/2012 7:05 pm

"It's the economy, stupid!"  That was the rallying cry for the Clinton campaign in the 1992 presidential election.  It's even more true today. With the U.S. suffering from the effects of a long and painful recession (I know, I know -- it's technically over) -- the economy is the number one issue for women and men alike going into the 2012 elections.

But women arguably have a bigger stake. They lost more jobs as the downturn continued (men lost more in the beginning), and have gained far fewer back as employment slowly and painfully inches up. On top of that, women earn less in the first place, hold more forced part-time or temporary jobs, and have fewer benefits. All of that adds up to a compelling reason to understand and pay attention to the economy. And we're not stupid -- we're just mad as hell -- and who can blame us?

The temptation is just to vote 'em all out of office.  Women are the majority of the population, of registered voters, and of those who actually go to the polls -- meaning women can control any election.  But voting doesn't help (and can actually hurt) if you can't cut through the mumbo-jumbo of political rhetoric to get to reality.  That's where being "well informed and well armed" comes in.  When you know what to ask of candidates, and which answers mean something and which are just bumper-sticker reasoning, you'll know where your vote belongs -- and where it doesn't. Go ahead and be partisan -- not for a political party, but for your own interests.

The Deep Divide -- What Can Government Do? What Should Government Do?
 
When the economy slips into a recession or near-recession as it did in early 2008, both political parties get nervous, and propose various "fixes" to get more money into circulation and stop the downward spiral. (It's unclear whether they're feeling the people's pain, or feeling the pain of trying to get elected in a downturn).

Debate over how to produce a healthy economy goes to the very heart of the liberal/conservative philosophical divide. Conservatives put their faith in the business sector and the wealthy, while liberals and progressives believe government has a more direct role.

From the day he took office in 2001, President George W. Bush had one solution to virtually every economic problem -- tax cuts primarily benefiting the wealthy. His philosophy was a simple-minded version of conservative arguments in general: If corporations and the wealthy individuals who fund them through investments pay lower taxes, they will invest those tax savings in ways that will create jobs, such as building new plants, acquiring new subsidiaries, or expanding product lines. Businesses will direct money to suppliers, contractors and employees to accomplish these goals. Everyone will have more money to spend and the economy will grow.

Trickle Down, or Trickle Up?
 
This theory has been generally referred to as "trickle down," or "supply side economics," meaning change made at the top of the wealth pile eventually makes its way to workers at the bottom. Corollaries are that private enterprise is always better than government spending, and the less government interferes in the "free market" through regulation, the better.

Liberals and progressives believe that putting money in the hands of those that actually need it to live on is a better plan to keep the economy going -- because they spend more of what they have instead of just adding it to investment accounts. Low and moderate income people have to spend it all, every month, just to buy the basics. They hold the principle that in a recession, money should be injected into the economy as fast as possible.

Progressives also believe that the government can have a positive influence on economic growth through spending tax dollars. They would create some jobs by repairing infrastructure such as roads and bridges, funding green energy research and development, hiring more teachers, police, and firefighters, and restoring government services that have been cut.

Fallout for Women
 
One big factor in both the rise of the Tea Party and the debate over the debt ceiling that almost shut down the government in 2011 was an attack on public sector jobs and public sector unions.  In addition, federal budget cuts and the lack of tax revenue in the states has contributed to the shrinking of public sector jobs. Because firefighters and police are often exempted from these layoffs, the axe has fallen mostly on women, who make up the majority of teachers, health workers, child care workers, and public welfare workers. An analysis by the Institute for Women's Policy Research (IWPR), in Washington, D.C. found that women employees lost 81 percent (473,000) of the 581,000 jobs lost in the public sector from December 2008 through July, 2011.

Though job growth for everyone is recovering very slowly, it is slower for women than for men. According to the Bureau of Labor Statistics, women have regained only one out of five (536,000 or 19.7 percent) of the total jobs they lost as a result of the recession, while men have gained almost one out of three (1.95 million or 32.3 percent).  In the last year, from November 2010 to November 2011, of the 1.6 million jobs added to payrolls, 474,000 or 30 percent were filled by women and 1,126,000 or 70 percent were filled by men.

The Big Argument for 2012
 
The economy promises to be the most contested issue in the 2012 elections, from the race for the White House to down-ticket congressional, gubernatorial, and even local races. The fundamental differences between the parties, and liberal/conservative ideology, remain as entrenched as ever.

Because the "super committee" created by the 2011 Budget Control Act failed to come up with additional cuts in the name of deficit reduction, the law provides for automatic spending cuts (called "sequestration") of $1.2 trillion to kick in in January 2013, divided equally between defense and non-defense programs.

Some believe the committee never intended to come to agreement, because members on both sides believed the threat of automatic spending cuts would be politically advantageous.  Regardless of whether this is true, the issue is likely to dominate the 2012 political debate -- and women have the most to gain. Or to lose.

This post was adapted from "No More Bull: What Women Need to Know About the Economy and Why It Matters in 2012."

 
 
 

Follow Martha Burk on Twitter: www.twitter.com/@MarthaBurk

"It's the economy, stupid!"  That was the rallying cry for the Clinton campaign in the 1992 presidential election.  It's even more true today. With the U.S. suffering from the effects of a long and...
"It's the economy, stupid!"  That was the rallying cry for the Clinton campaign in the 1992 presidential election.  It's even more true today. With the U.S. suffering from the effects of a long and...
 
 
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08:40 PM on 03/24/2012
People who leave the work force, men or women tend to be paid less than their peers.

Generally women leave the work force more often than men to have children.

The problem is several decades ago someone could support a family with just a single parent working and pumping gas. A second working parent was not needed.
ubrew12
that crazy uncle from Amarcord
11:58 PM on 03/25/2012
Several decades ago the maximum marginal income tax was over 90%, and one of every three workers belonged to a union. Given todays 35%, and 1 in 10 respective values, we aren't likely to see those days anytime soon.
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Ayesha Khan
01:40 PM on 03/24/2012
I agree absolutely that its the Women who suffer mostly when it comes to better paid jobs. It is also correct that women perform better than men, but even then they face discrimination, which leads to so many other problems. But the fact remains that the government has not taken any concrete measures to bring relieve to the suffering economy, its only the rich who are comfortable in both the states weather its recession or not. Since they have accumulated so much wealth the the inflation dosen't matter to them moreover, they are less tax burden compare to an ordinary person--Now this is a real serious issue and requires immediate attention------
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Neli Borba
12:24 PM on 03/24/2012
The "trickle down" will only work when they stop shipping jobs overseas. And it is not manufacturing jobs, jobs that can be done using the net and a computer or a telephone were shipped to India. It is fair to lower the taxes of the rich when these big corporations do their part by not sending jobs that the american people need overseas. President Bush policy didn't help much; everything was covered under a smoke screen that was removed as soon he left office. We need real policies that work for real people not only for the rich.
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Ryan Kenneth Leddy
Facts have a liberal bias.
11:29 AM on 03/24/2012
It seems Republicans have tried to turn the public's focus on to other matters as of late to distract from the moderately improving economy. Republicans have laid the blame on high gas prices squarely on the shoulders of the President, yet when Gas Prices reached even higher levels under Bush during the Summer before the recession, Republicans were repeating time and time again that there is nothing the President can do to lower gas prices.

Then, the Republicans are making birth control a central issue, as well as war with Iran to further distract the American public.

I think that this would be a good time for the President to reintroduce his Jobs Bill, or at least the Infrastructure part of it. Obama needs to take advantage of the current economic conditions and once again bring his proposal to the America public in order to get them to pressure their Representatives.

Macroeconomic Advisers, a nonpartisan economic forecasting shop, projected the President's Job Bill to grow the GDP by an additional 1.5% by the end of 2013 and increase non-farm employment numbers by 2.1 million. Just the infrastructure part of the bill alone, which only carries a price tag of $100 billion (a fraction of DOD's budget) would create 1 million jobs. With this bill Obama would be entering the election with the employment rate hovering at just above 7% which would make him a shoe-in to be re-elected.
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davegstein
01:24 PM on 03/24/2012
While I agree that these social issues make for good distractions and diversions...I would not be so quick to take it for granted that it simple strategy by the Repubs.I can't help but feel that there is a power grab by the extremist religious right,a kind of "moral majority 2.0 " movement.
Why would the extremist religious right have particularly more power this time around? Possibly because the Tea-Party is comprised mostly of far right religious folks,and we all know how fearful any republican is of anything with the "tea-Party" name attached.
So anyway,regardless of who invented this whole social distraction first,the repubs would have no problem with embracing it,as it serves their purposes to have the ears eyes and minds of the people off of their true intentions....
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Ryan Kenneth Leddy
Facts have a liberal bias.
03:16 PM on 03/24/2012
Even though the GOP establishment has tried to distanced themselves from the Tea Party, the effort is futile since at the same time you have the candidates in the Republican Primary who have been catering to the Tea Parties every command since it is nearly impossible to win the GOP nomination without their support since they are the ones who vote, not the Republican leaning independents who sometimes vote for Democrats.

Still though, is there really any difference between the Tea Party and GOP Establishment among politicians? I know that the voting base is different between the two. The Tea Party getting most of it's support from middle-class white families/males and the GOP getting most of it's support from wealthy businessmen and seniors. But, among the politicians it seems that the only difference is that Tea Party members are the ones who actually say the crazy things they think meanwhile the GOP establishment mostly keeps the crazy things they think to themselves.
11:09 AM on 03/24/2012
i really care so much.What will happen now.Maybe we can draft another law that men must stop working so more women can get jobs.It might solve problem.see the perfect solution.
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luvsox
Progressive by Choice, Democrat by Default
11:40 AM on 03/24/2012
You should paste that on the refrigerator where mommy can see it. She'll be so proud of her little man!
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09:20 AM on 03/24/2012
I know that
more spending and debt is not a solution to a spending and debt problem.
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Susan Aker
10:25 AM on 03/24/2012
You are making the assumption that we have a spending and debt problem.

You would be correct if that were indeed the problem, but it isn't. With historically low taxes, is it any surprise that we have a revenue problem?

If a company kept lowering the price of their products, below the level of cost, they would go out of business eventually and might borrow money to stay afloat a little longer. But since that would be a really stupid business model, chances are that, instead, they would raise their prices.

The price of Government services is at an historic low right now and all we hear is how we need to cut the popular services, those that most people don't mind paying for, in order to subsidize big corporations and billionaires. This is a very bad deal, especially for women, as it is the programs that are run mostly by women that are being cut (as was said in the article.) The solution is to raise taxes and reorganize our priorities in a way that benefits all of us, men and women alike.
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11:20 AM on 03/24/2012
I assume right when I say that the federal government and most states and most cities and towns and most households have a spending and debt problem. there is a LOT of non essential federal spending that can be cut...but both parties in congress choose not to. all I want to see is a correlation between minimal federal taxes collected from EVERYONE and money in spent by Washington. collect the money...then spend only that money.
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pshakkottai
retired engineer
02:09 PM on 03/24/2012
The government produces money to keep the economy running. Business models do not apply to USA which is the monopoly creator of $. All government deficits and only deficits grow the economy. The equation of balance is
(Federal Deficits = Net Private Savings+ net imports), applies to USA and other nations that have their own currencies. This implies
(national govt_debt) = (national private wealth), because net imports also adds to wealth. A numerical verification of this is given in
http://pshakkottai.wordpress.com/2012/02/27/national-debt-and-national-wealth-compared/
My estimate is that deficits should be increased by 50% of GDP to take up the slack in the economy and end the austerity.
10:32 AM on 03/24/2012
Ever heard of a stitch in time saves nine? Many times taking a proactive step at the first sign of a problem saves many more dollars (and bigger problems) down the road.

You might want to save the cost of a plumbing bill to address a small problem which ends up saving you that immediate bill - but you are paying high prices for wasted water, as well as being wasteful with a precious resource -water.

You can save a lot of money by refusing to incarcerate any criminals, heck why even spend the money on costly trials--but at what price are you paying for what happens in the community?

You can save money by firing half of the teachers, by not replacing old text books, by not having computers in schools - but what is the price to society when its people are uneducated?

You can budget on the cheap and feed your family little packages of noodles, your budget may see a temporary improvement - but when health issues development due to malnourishment, you will be paying out more for your temporary savings.
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Aslow
QUALITY CONTINUUM
08:07 AM on 03/24/2012
The problem isn't the recession. It's Obama's reaction to the recession.
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luvsox
Progressive by Choice, Democrat by Default
11:42 AM on 03/24/2012
That doesn't make a bit of sense.
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davegstein
01:39 PM on 03/24/2012
He sounds like a new recruit of the Heritage Foundation.Based on his simplistic and one line response,I would have to believe his "Heritage Foundation handy pocket guide to right-wing talking points and bumper slogans" has not arrived yet.....
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pshakkottai
retired engineer
02:16 PM on 03/24/2012
Every recession is cured by deficit spending. See data in
http://rodgermmitchell.wordpress.com/2011/11/13/want-to-stimulate-the-economy-then-increase-federal-debt-here%E2%80%99s-the-evidence/
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Jason McClinsey
My micro-bio is still empty
06:32 AM on 03/24/2012
The author makes an important point that I'd like to highlight: republicans often push tax cuts primarily for the wealthy, and claim that this will boost the "free market." Very often, we hear rhetoric from repubs about free markets, but I cannot think of a republican president that has actually embraced them in my lifetime, and the result is that a very large portion of the public believes that the definition of the free market is synonymous with that of corporatism/fascism. Repubs seem to forget that the market includes businesses of all sizes, and while they give lip-service to the benefits of competition, they usually support legislation that creates very high barriers to entry. Perhaps this is the single most important factor that allows so much wealth concentration in so few hands. How can a small business effectively compete with a large one, which has access to easy money from the Fed, and can afford to buy off politicians, in order to stifle competitors? The New Left historian Gabriel Kolko, in his excellent book "The Triumph of Conservatism," documents how big business used legislation to stifle the competition that was killing their trusts, cartels, and monopolies (during the progressive era). I believe that the history outlined in this book can be applied to our modern system of business, so it is a very worth-while read for someone that is trying to understand the topic of this article.
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MissTake1989
Equal means equal, hypocrites.
06:23 AM on 03/24/2012
"...the economy is the number one issue for women and men alike going into the 2012 elections.

But women arguably have a bigger stake."

The easiest way to spot a sexist is they see an issue that affects everyone, but only notice or care about one gender, rather than both.

Two years ago, would you have written "but men arguably have a bigger stake?

Not a chance.
08:22 AM on 03/24/2012
Nothing sexist about this article at all. It's a nicely written, simple, and accurate treatment of how BOTH sexes have been impacted by the recession and by the recovery, refreshingly non-political. It's also accurate with respect to basic economic philosophies of Conservatives vs Progressives. You can take whatever position you want as to which philosophy is better, but Burk just comments on the different rates of initial job loss and recovery by gender and job sector. If you don't think that health care, child care, teaching, and social welfare jobs have historically been held predominently by women, I guess you can make this article sexist--even though it flies in the face of facts. Naturally, most of the posts here will do either that or start throwing mud at one party or the other (or both)--like they always do, but that'll have little to do with reality or with this article.

I don't know why people who post here even bother to read the article written before they comment. Frankly, most of the articles are lopsided garbage, but it doesn't matter anyway. Extremists (left and right) have already made up their minds and positions in advance. When the only tool you have is a hammer, every problem looks like a nail.
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MissTake1989
Equal means equal, hypocrites.
09:25 PM on 03/24/2012
The only tool I have is a mirror.

None of them care to look in it.
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Midnight Cry
Tax Reform Now!
11:06 PM on 03/23/2012
Women are losing big time under the current administration. There are way too many people out of work. Too many of our kids are dying in the Middle East. We need change badly.
05:18 AM on 03/24/2012
so lets change to a religous zealot that doesnt believe in womens rights or a millionaire corporate raider..... good choice. do you have the audacity to tell women that they will have rights under a right wing administration that wants to control their sex lives.
10:02 AM on 03/24/2012
Who do you think put our kids in the Middle East and who is now bringing them home and what canidates are avocating more troops in the Middle East?
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Midnight Cry
Tax Reform Now!
11:38 AM on 03/24/2012
Obama sent 1,000 more troops to Afghanistan this week. A friend talked with them leaving at the airport. The Congress put our kids into the war. The Congress is the legislative body that declares war, not the Executive Branch. Read the Constitution. Neither party wants to control women's sex lives.... that's a farce.
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PotomacOracle
The Solution:debt free credit clearing systems
10:39 PM on 03/23/2012
America's women should be highly incensed after reading the truth about how government actually operates its "fiat" currency in Professor Warren Mosler's, "Seven Deadly Innocent Frauds of Economic Policy."

Before reading Mosler, I like 99.9% of Americans thought we paid taxes to fund government expenditures like defense, health care, etc. Prof Mosler writes in non-technical language that Federal taxes don't pay for anything. He shows how the Fed issues all the currency because there is no other institution with the legal authority to do so. Then he looks at just how the Fed actually uses its computers to make entries into spreadsheets without ever having to refer to tax receipts.

Mosler explains, " We are taxed to keep us from spending too much which if we did would likely cause inflation." We are not taxed to raise revenue, per se, because the Fed doesn't need revenue, it creates all the money in the first place.

Two sites for women to puruse, www.modernmoney.wordpress.com/index and http://moslereconomics.com/2009/12/10/7-deadly-innocent-frauds/
07:56 AM on 03/24/2012
Another economic bufoon.
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davegstein
01:49 PM on 03/24/2012
Sorry buddy,sounds like conspiracy nonsense.I'll pass......
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PotomacOracle
The Solution:debt free credit clearing systems
08:09 PM on 03/24/2012
Yah, well good you wouldn't enjoy the company of Drs. Galbraith, Wray, Keen, and others who support Modern Monetary Theory. Besides your knee jerk reaction tells me all I need to know about your intellectual curiosity.
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mj1247
this comment approved by..me
09:55 PM on 03/23/2012
after all the recent news about the republicans wanting to control womens bodys i guess i know who most women are going to support...
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esword2020
the truth is important for dem not so much for rep
09:07 PM on 03/23/2012
so wat is the message
12:06 PM on 03/24/2012
The message is VOTE DEMOCRAT across the board. Throw out the Republicans as they've proven themselves to be in it for the very wealthy with no regard for the middle and lower class. The more they make, and they've recorded RECORD profits over the last 4 years, the less the middle class makes thereby increasing the divide. Republicanism is Imperialism run amok, and also borders on Nazism in the control of human rights. Republicans are dangerous, always start new oil wars because they actually PROFIT from war itself with no regard for the young men and women who give their lives as a result. WAR, BANKING ATROCITIES, OVERSPENDING WHILE CUTTING THEIR OWN TAXES at OUR expense. Screw them...they're useless to us.
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davegstein
02:09 PM on 03/24/2012
Yes,Republicans are all about greed.The greed of personal wealth and power.
Keep in mind that power and wealth are interchangeable.
So,in their quest for power and wealth,they climb in bed with the corporate and the wealthy,who help buy their initial seat in government in the first place.Once in,they of course return the gift by legislating for their benefactors.
Any big mystery,how a congressman of moderate salary (140-170 thousand/year),can in short time claim a personal wealth of many many millions? A position of power that allows them access to insider trade knowledge..even drafting the very laws that effect stock value.Or outrageous speaking fees? Or other Off the book gifts,stock options or favors from their wealthy handlers?
And then of course there is the knowledge for their role in serving their corporate masters,they will obtain cushy boardroom salaries on their exit from Congress.
Alongside their quest for power and money,the repubs have also been on a decades long agenda to eliminate all the social gains of the New-Deal,to create a two caste system that ensures the monopoly on wealth and power.
Of course,there are also Dems that hunger with greed,but at least for the most part they attempt to create legislation that actually benefits those who are not the 1%.The larger picture is that we need to eliminate the corrupting influence of money in our system of legislative bribery.But achieving this with the repubs in power is a guaranteed impossibility.