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Robert Creamer

Robert Creamer

Posted: June 17, 2010 11:10 AM

Real Factor in Midterms: Too Few Jobs, Not Too Much Spending

What's Your Reaction:

"I know we should provide more money for state government to prevent hundreds of thousands of teachers, police, and public workers from being laid off, but I just can't vote for one more bill that increases the deficit."

If I had a dollar for every time I've heard that -- or something similar about other job creating programs from a Member of Congress -- I could probably retire.

Many Democratic Members of Congress are convinced that it is bad politics for them to support more spending on jobs, if it isn't "off set" by other cuts or increases in revenues. They're convinced by polls that show great public concern over "government spending and the deficit."

But they are dead wrong about the political consequences of the choices before them.

There is one factor driving the anger and unhappiness that is so palpable in the electorate: people are worried about the economic prospects of their families. They are frightened about their futures. They worry that their children may have less economic opportunity than they did.

And there is only one "political message" that really addresses this sense of economic insecurity. Voters have to see things actually getting better for their families and their neighbors. They have to see their brother-in-law finally get a job.

Yesterday, economist Alan Blinder published a piece in the Wall Street Journal that clearly stated the case that the economic policies undertaken by the Obama Administration and Democratic Congress have done an enormous amount to create new jobs -- and to rescue the economy from the potential of another Great Depression.

There is no doubt that this is true. Of course it's hard to get credit for avoiding disaster. But more importantly, the everyday economic circumstances of everyday people - while they are definitely improving -- aren't improving enough to make them feel hopeful. That's why the single most important thing Democrats in Congress can do to improve the political climate this fall is anything that creates or saves more jobs.

Don't get me wrong. There are many things that Democrats can do to take back the political momentum in the midterm elections.

We can make certain that the debate presents the voters with a choice of paths to the future, not just a referendum on the status quo. Do we want to go back to the failed Bush economic policies that favored Wall Street, Big Oil, and insurance companies and that devastated the middle class and small business? That is a very resonant message. The polling shows that most Americans understand that the policies of the Bush years -- and the Wall Street banks were the real culprits that cost eight million Americans their jobs. We have to constantly remind them that the Republican alternative involves going back to the bad ole days of yesteryear.

We can make a strong case that if the Republicans are the Party of "No" now, Republican control of Congress would deliver gridlock. Remember many voters who are angry at government are angry at what they perceive as inaction (notwithstanding the health care bill, stimulus bill, and Wall Street reform bill) -- not too much action.

And increasingly, focus groups show that there is much unease that many Republican candidates are simply extremists.

Polling and focus groups show that these are very compelling messages for the fall. And they will be strengthened mightily when we put meat on the bones -- when we spell out exactly the policies that the Republicans would like to put in place.

A lot of swing voters find it easy to fall for the Republican posturing about "government spending" until we drive home the fact that they want to eliminate Medicare and replace it with a system of vouchers -- or privatize Social Security.

All of these are important elements for a successful Democratic strategy in the fall. But to deal with the underlying sense of anxiety and anger, nothing will work besides actually creating more jobs -- more short term economic opportunity.

Less than five months before Election Day there are very few ways for Congress -- or the White House -- to affect the jobs situation in November. Most new government action takes months to actually kick in.

There is, however, one, that does not. Providing money -- and guarantees of funding -- for state and local governments will actually prevent the destruction of hundreds of thousands of jobs. With the assurance of Federal funding, states and localities can act immediately to keep people working -- with incomes that keep them buying the products that keep other people working.

If the Congress does not act, hundreds of thousands of Americans will be laid off. That is horrible politics for Democrats -- particularly Democrats in swing Congressional Districts.

With the economy actually creating jobs, the last thing we need are massive state and local layoffs that offset that job creation. That would involve snatching economic defeat from the jaws of victory.

And contrary to the Republican blathering that "only the private sector can create real jobs," there is no one that would argue that teachers, firemen, police officers, emergency medical personnel, and the people who build and maintain roads do not do "real jobs." These are jobs performing some of the most economically vital tasks in our economy -- and if they are not done, real damage will be done to the present economy and the future prospects of our children.

The Democratic leadership in both Houses -- and the White House -- understand this political and economic reality clearly. But fear of voting to "increase the deficit" has infected many Members of the Democratic caucus so completely that they risk failing to take actions that can actually improve their own chances for reelection.

Voters will not remember or care whether they vote for this or that funding bill that "increased the deficit" -- and the Republicans will say they voted to increase the deficit no matter what they do. What the voters will remember is how they feel about the overall direction of the economy and the jobs situation. That feeling is the starting place for any other message that Democratic incumbents will try to communicate this fall.

The fact is that voting for jobs is always good politics.

Democratic Members of Congress can't let Republicans frighten them into doing something that is both bad for the economy and bad for themselves politically. Congress needs to pass a robust jobs bill -- including aide to state and local government now.

Robert Creamer is a long-time political organizer and strategist, and author of the recent book: Stand Up Straight: How Progressives Can Win, available on Amazon.com.

 
 
 
 
 
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12:43 AM on 06/19/2010
If the federal government would stop wasting borrowed money, the economy would recover. The threat of ever increasing debt, ever higher taxes, and ever unexpected moves by the White House are what is preventing jobs creation. Stop the madness. No government has EVER spent its way out of a recession. EVER. In the history of the world. NEVER. The great depression lasted 12 years after FDR started his massive spending. Only world war ended the depression. Japan tried to spend its way out of recession and has had more than ten years of zero growth.
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Chernynkaya
05:18 PM on 06/18/2010
Exactly spot on, Mr. Creamer. There is no way to reduce the deficit and create the stimulus needed for jobs simultaneously-- and I bet Congress knows that.
09:16 AM on 06/18/2010
True, true, true. Any time you hear someone complain about increasing the deficit, just ask them where they were when George Bush took the surplus he inherited from Bill Clinton and trashed it in two years. And keep asking them.
12:45 AM on 06/19/2010
Bush failed to stand up to Congress and allowed the post Cold War budget surplus to slip away. The answer is to get someone in the White House who will stand up and stop the wasteful spending.
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mcartri
09:43 PM on 06/17/2010
Corporate owned Republicans & Democrats don't give a hoot what happens to ordinary Americans. Never have...never will. They bow at the altar of greed. Their love of money is never surpassed by that silly being "their brother's keepers" stuff. As long as the American voter is willing to vote against their own self-interests, the corrupted two-party system will keep screwing them forever.
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Marianne TB
08:42 AM on 06/18/2010
I watched it happening back when Raygun was in office. his pandering to the big corps, tax breaks, and a huge speech on 'how tax breaks to big corps will help build america!'/// indeed, the liar,, they took that cash and built their factories in china, mexico, anywhere where they could get slave labour..short term profits for a few unregulated corporations who could care less . and the politicians suck up the lobbyist money to make it keep happening. campaign finance reform is the only thing to fix it, but they wont, because they are sociopaths.
09:33 PM on 06/17/2010
Since the economy has been "fixed?" Just wondering when the corporations and businesses will be lining up to hire the unemployed? Why does the unemployment rate continue to go up?
The pool of jobs is obviously drying up so now is not the time to stop unemployment.
"The future of the next generation" is a lame argument. I am a boomer and no one worried about me paying for the ww2 generations ss.
Boomers need to wake up and stop their benefits from being stolen by the politicans.
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procrustes13
10:25 PM on 06/17/2010
Crumbling infrastructure and a large and permanent inter-generational army of unemployed people is hardly the kind of legacy that a decent leadership would leave future generations. This is what the so-called deficit hawks propose in the name of future generations.
12:36 AM on 06/18/2010
I rather believe that these so-called "hawks" inherited this crap of an 8-year crumbling infrastructure, sent-overseas-jobs, corprorations run amok, and no restrictions to safety on oil rigs, coal/gold mines, child labor, and so on. Don't come at me with this: "OMG! This just all happemed under the current administration!" BS. Pu-leeeze.
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procrustes13
01:02 PM on 06/18/2010
The Republicans and the Triangulationist DLC are the same thing, essentially. They've ruled uninterruptedly since 1981, arguably since 1969... Obama and the Republicans are for deficit terrorism, they've made that clear, the Republicans happen to be more zealous about it. They claim that shrinking the economy and neglecting the infrastructure is required "for future generations". They are the problem.
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08:18 PM on 06/17/2010
Cut subsidies for Big Profit Corporations to help pay for a great jobs bill. Let's put money into our infrastructure (that really needs it) and put money in the pockets of the workers to pay their bills, keep their homes and spend. We do need to pay as we go but we need to do something that's going to make money for America first. We need to give money to American hybrid car and renewable energy product manufacturers that make products that other countries will need and buy. There is so much that can be done if the money goes to the right places. But it is going to the wrong people in the wrong places. Don't cut state and local funding, cut corporate funding. Make the wealthy pay their fair share of the taxes by closing the loopholes and outlawing the tax havens. Strengthen the middle class and you strengthen everyone, including the wealthy.
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Chad Brick
07:02 PM on 06/17/2010
Sure, let's give money for cops, firefighters and teachers...under one condition:

We tear up any and all contracts, and switch them to 401k's.

Wasn't that easy?
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procrustes13
07:45 PM on 06/17/2010
The Small People's contracts and terms that benefit them must be cancelled of course. That's always the solution.
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mcartri
09:51 PM on 06/17/2010
Chad, let's eliminate taxes on anyone making over $250,000 a year. Can't you just feel that money trickling down? Cops, teachers & firemen are natural losers. If they were worthy, they would have inherited an oil company or maybe Wal-Mart. We are having a little economic tick now because we are short one war. Having only two-wars in Muslim countries won't cut it. Let the bombing begin in ____.
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ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
05:35 PM on 06/17/2010
I'm glad they defeated the "jobs" bill, because it contained Medicare increases for doctors fees.

Technology and productivity improvements have reduced prices of most good and services.
Computers, phone, cameras, all forms of technology are much cheaper.

But not medical care. Why? Why aren't MRIs less expensive?
Why should doctors need higher fees in a deflationary economy, using cheaper technology?

Answer: they don't, doctors want more income (average $400K), drug companies bigger profits.
MRIs and drugs don't become cheaper because they don't have to, we suckers buy them.
(Mostly of course because we don't pay for them, insurers do.)
I worked in the medical imaging field; cost is simply not a concern.

NO INCREASE IN MEDICARE FEES. Congratulations to Congress on defeating this bill.
04:13 PM on 06/17/2010
This is a novel idea, though for Democrats, actually creating jobs. I mean they haven't destroyed the private sector yet! I think the preazident is actually worried he may have killed the cow before he got to milk it dry. Sure the 20 billion from BP will help before he can go for the jugler and kill the company. Plus how is cap and tax going to get done, is the oil well in the gulf enough or is another crises going to manifest itself to his advantage? All these things because it took far longer to get health care socialized before the independents realized he's actually going to destroy the economy for years. I like your comment about road building, but the problem is over half the trucks are sitting for sale from the independents and thousands are sitting by the majors. You see if no one is buying anything, no one is trucking anything, and no one is using the roads. As far as those other overpaid Gov't jobs you're talking about. I'll take any one of them for myself and my family, firemen got it easy. Try deep shaft coal mining, steel mill, high rise construction, I can think of about 100 other jobs I'd rather NOT have.
jhNY
Mercy.
07:06 PM on 06/17/2010
Have you no shame, or no memory? Which is it? You say "firemen got it easy". I say 9-11. I win.
08:15 PM on 06/17/2010
Nice job jhNY
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09:15 AM on 06/18/2010
I spent 20yrs as a paid firefighter in a major city....Please, tell me how "easy" my job was because I must have missed that part.

Easy NO....Fulfilling and worth it YES.
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07:21 PM on 06/17/2010
I think you're confused. The Republicans created recession destroyed all of the private sector, with the exception of monopoly sized corporations. The reason we are having this conversation is because too little regulation of business (Wall Street gangsters). BP should have had MORE safety laws. CHINA should be required to practice equal trade policies with us.

Instead if workers racing to the bottom and working for poverty wages (which makes most Republicans orgasm), we should be working on methods for a higher paid society. When people make higher wages, private businesses will have larger profits.
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Amin Khad
11:36 PM on 06/18/2010
With your line of thinking, and completely distorted perception of history, America has no hope.
04:06 PM on 06/17/2010
Giving money to government workers won't help the economy grow. Obama needs to stop his anti-business rhetoric. Private sector hiring is the key to recovery.
05:32 PM on 06/17/2010
Government workers are every bit as productive or more so than private sector workers.

Tour some government offices.

Then tour some private sector ones.

Which ones have the most useless bells and whistles?

Also when a Government worker spends it has the same impact on the economy as when a private sector worker spends one.
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Amin Khad
11:43 PM on 06/17/2010
Government workers are significantly more expensive than private sector workers per unit of productivity, especially when all benefits are tabulated.

Government workers are also notoriously difficult to fire for incompetence due to their politically strong unions.
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07:25 PM on 06/17/2010
YOU ARE WRONG. If the private sector was good at creating jobs for a recovery, they wouldn't have been the creators of the recession. The private sector CAUSED the recesssion. What Obama is attempting to do is repait the extreme damage that the unregulated Bush-Cheney private sector did to America. And don't bitch to me about blaming Bush. This recession started back in 2007, caused by years and years of BAD Republic economic policies for unregualted criminal business activity.
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Amin Khad
11:44 PM on 06/17/2010
Actually, Fannie Mae, Freddie Mac, and the Federal Reserve, all public sector organizations, created the recession. The private sector players that contributed to the crisis were all saved by a government program, the $750 billion corporate hand out to the banks.
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FoonTheElder
Always choosing between the lesser of two evils
03:52 PM on 06/17/2010
The Congressional way to vote for more jobs is always to vote for more corporate welfare, under the misguided notion that giving corporations more money will encourage them to create more jobs and expand their business in the U.S. All that corporate welfare does is pay corporations more for what they were going to do anyway.

For example, the Bush Administration pushed a reduced tax on the repatriation of money at a reduced tax rate of 5.25% from 35%, for investment in American locations and jobs. It was illegal to use it for stock buybacks and dividends. Guess what, 92% of the money was used for stock buybacks and dividends.
http://www.nytimes.com/2009/06/05/business/05norris.html?_r=1

Until you deal with the real causes of the lack of sustainable job growth, there will be no change in employment opportunites. The problems have been accentuated by the recession, but the real cause is the lack of anti-trust and anti-competitive enforcement and pro-corporate trade deals. The continued concentration and domination of big corporations not only reduces employment at big corporations, but limits the ability of smaller companies to form and compete. Oligopolies have the ability to increase their prices to gain profits and their incentive is to push as many costs as they can back onto employees and suppliers.

http://www.washingtonmonthly.com//features/2010/1003.lynn-longman.html
http://www.oligopolywatch.com/stories/2003/04/21/basicPrinciplesOfOligopolies.html
04:22 PM on 06/17/2010
You're right its the big corporations that pay all those dividends to mostly pension funds. Did you see all the school districts retirement funds that aren't going to get paid a dividend from BP because of prezedent socialisme? Plus you're right bust up all those big US corporations that compete globally, make em all cottage industry shops like France, Spain and such, good idea. Why don't you ask Michelle Obama whom sits on the board of a company that pays their CEO 2 and a half times what the CEO of Wal Mart makes and has sales of half of one percent as large? Nice word Oligopolies, just learn it? and are they related to the Onandaga's or Cayuga's.
jhNY
Mercy.
07:08 PM on 06/17/2010
The no-punctuation thing, plus the bad grammar, coupled with all that corruscating logic is a real witch's brew of non-readability!
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FoonTheElder
Always choosing between the lesser of two evils
08:04 PM on 06/17/2010
Oh my goodness...a company that commits fraud and negligent homicide won't pay a dividend and their stock price won't go up.

They're really paying for their criminal behavior. If BP's failure to pay a dividend is so detrimental to the world, I would say that's example number one of too big to fail.

When investors play at the Wall Street gambling casino, why do they think they are only going to win. The whole system is full of financial manipulations that pump up stock prices so that top management can make their millions of dollars on stock options. Enron wasn't an isolated incident.

As far as the Obama's, they are nothing more than corporate center-right politicians. Corporate America pays their puppets well.
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cintirich
Support the Constitution, not talking points.
03:46 PM on 06/17/2010
Good call, Bob. To hell with what's good for the country, so long as it's good for the party.
jhNY
Mercy.
07:10 PM on 06/17/2010
Yep. it woul;d be better to wait until the dynamic engine of free market capitalism starts coughing out all the jobs we need. Oops! The banksters broke it. People need jobs NOW. You can look it up. A big jobs bill would be good for the country and good for the party, and I'm pretty sure you are in support of at least one of the benficiaries listed.
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03:06 PM on 06/17/2010
COULDN'T AGREE MORE!!!
02:51 PM on 06/17/2010
From your lips to God's ears.
01:58 PM on 06/17/2010
Morons. We've got morons on our team. I can understand why Republicans would serve the corporate and banking interests by recommending the same policies that were pursued by Herbert Hoover and were urged on FRD by the conservatives. And I can understand why members of either party would stoop to serving the interests of their corporate sponsors. But anyone in Congress who has actually been taken in by those who advocate austerity budgets as an answer to a Great Recession really needs to get an education in macroeconomics. Fast.
02:08 PM on 06/17/2010
Sorry. That's FDR, not FRD.
04:07 PM on 06/17/2010
FDR's spending didn't reduce unemployment.