iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Robert Kuttner

GET UPDATES FROM Robert Kuttner
 

Notes for Next Time

Posted: 10/07/2012 10:39 pm

I was pleased to see the unemployment rate come down to 7.8 percent. But honestly, that's not nearly good enough.

Too many of the jobs don't pay a decent wage. And they won't pay decently until we get unemployment down to about 4 percent, as it was in the 1990s.

Our kids are saddled with a trillion dollars of student debt, and they are going out into a very weak job market. 30 percent of recent college grads move back in with their parents.

Our retirees are facing an eroding pension system, and the loss of their home equity, as well as very low returns on their savings because the Federal Reserve has rightly lowered interest rates, as one strategy of cleaning up the financial mess that we inherited.

This is not a four-year problem. It is a three decades problem.

It is not a case of young versus old, but a case of the one percent -- who are only getting wealthier -- versus everyone else.

Now wait a minute, aren't I the incumbent? Shouldn't I be defending this economy?

The truth is, Americans are suffering from a 30-year trend of the very top getting nearly all of the gains of the economy's rising productivity -- a trend that turned critical in the fall of 2008 before I took office, under the presidency of George W. Bush.

The only exception to this dismal record was under President Clinton, when we had full employment, put the budget into surplus, protected Social Security, and created over 20 million jobs.

This long term crisis for working Americans was the result of Republican ideology and Republican policies -- of making the tax system less fair and of blocking efforts to use government to help regular people to catch a break; blocking policies to keep the speculative parts of the financial system from blowing up the rest of the economy.

Every effort I have made to address these deeper problems has been blocked by Governor Romney's party. The senate Republican leader Mitch McConnell, said that his number one goal was to make sure I failed. Whether the issue has been efforts to make the tax system fairer, or to provide more debt relief to students and to homeowners, or to keep Wall Street from destroying the economy again, or restore investments in our people and our future, the Republicans have been the party of no.

And if Governor Romney is elected and they become the party of yes, heaven help us all. Because their idea of yes means yes to more tax breaks tilted to the extremely wealthy; yes to privatizing Social Security; yes to cutting the investments in our people that create ladders of opportunity.

Governor Romney actually suggested that young people solve their economic problems by borrowing from their parents. It may come as news to him, but most people of college age don't have rich parents. Most adults with college age kids are struggling, too.

We have heard a lot about job-creators. Supposedly, we have to give more tax breaks to the fortunate few who can well afford to pay their fair share.

Well, let's look at the record.

Four times as many jobs were created in the 1990s, when we had a fairer tax system and the wealthiest paid their fair share, than were created in the Bush era when had huge tax breaks for the well off and cut investments in our people.

The tax code was even more progressive in the three decades after World War II, when we had no trouble creating tens of millions of well paying jobs -- these were jobs that paid enough that one breadwinner could support a family.

In that era, corporations and well off individuals paid a much higher rate of tax, and the rest of us paid less. Do you know why American business prospered and created so many jobs? It was because regular working people had decent paychecks and could afford to buy the products.

So tax cuts for the wealthiest are no silver bullet. If they were, the George W. Bush era would have created 20 million jobs rather than the 5 million actually created.

Now Governor Romney says we can cut tax rates to 20 percent on everyone, without giving the top group yet another tax break, and without increasing the deficit. He claims we can do that by closing loopholes.

But what loopholes? He won't tell us.

There are some loopholes that do benefit the very rich -- including the one that allows Governor Romney to pay taxes at just 14 percent of his income. I hope he will support closing that one.

But there just aren't enough loopholes that solely benefit the rich to pay for that big a tax cut.

So tell us, Governor, what would you get rid of? The tax deduction for mortgage interest -- just when housing prices are beginning to recover? Would you get rid of the charitable deduction, at a time when charities are being asked to fill holes in government help?

Governor Romney has a very imaginative concept of basic arithmetic. But he is running for president, not for magician. So tell us, governor, where would you get the money to make up the $5 trillion in revenue losses that result from cutting everyone's tax rate to 20 percent?

***

Comments:

None of this stuff is too wonky to be grist for debate. The essence is very straightforward. You just need to explain it better.

It's OK to attack. There is a sweet spot between nasty and feeble. Call it jaunty. FDR had it. Reagan had it. You had it occasionally in 2008, and in the first debate Mitt Romney found it and you didn't.

A little class warfare on behalf of ordinary Americans is OK, because all the class solidarity lately has come from the one percent. Regular people know they are getting screwed. Romney actually affirmed what people are feeling. My colleague Harold Meyerson unearthed a terrific quote from that arch-liberal (and anti-radical) Arthur Schlesinger, Jr. "Class conflict is essential if freedom is to be preserved because it is the only barrier to class domination." Exactly.

Your handlers who advised you to stick to the high road and the scripted talking points are idiots. They had front-runner disease -- which then mixed with your own excessive tendency to caution and diffidence.

The TV spots, campaign surrogates, and media fact-checks can rebut Romney's serial lies until the cows come home -- but it's no substitute for you finding a voice that calls him on the lies yourself, to his face. If you can't find that voice, you are toast and so are we. But I suspect that you can. Yes we can.

Robert Kuttner is co-editor of The American Prospect and a senior fellow at Demos.
His latest book is 'A Presidency in Peril'.
(Boy, is it ever.)

 
 
 
FOLLOW POLITICS
I was pleased to see the unemployment rate come down to 7.8 percent. But honestly, that's not nearly good enough. Too many of the jobs don't pay a decent wage. And they won't pay decently until we g...
I was pleased to see the unemployment rate come down to 7.8 percent. But honestly, that's not nearly good enough. Too many of the jobs don't pay a decent wage. And they won't pay decently until we g...
 
 
  • Comments
  • 501
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Highlights
Bloggers
Recency  | 
Popularity
Page: 1 2 3 4 5  Next ›  Last »  (10 total)
photo
HUFFPOST SUPER USER
QuietProfessional
Recovering Jedi
06:56 AM on 10/10/2012
Obama didn't have an off night. That WAS his A game. The best he can do. He's a C student who can only be made to sound like an A student when flanked by teleprompters and a fawning media.

The trouble is, Romney really is a A student. The next two debates will go no better for Obama.
02:28 PM on 10/09/2012
The author asserts above that Romney wants to cut everyone's income tax rate to 20 percent. I thought at first that I had misread that, until I read it again.

No, he is proposing cutting everyone's tax rate *by* 20 percent, not *to* 20 percent. Pesky prepositions. They're so easy to get mixed up. He's Mitt Romney, not Steve Forbes.

Also, how is a lower capital gains tax rate a "loophole"? The very premise of capital gains is that it is income *gained,* often (perhaps even increasingly) by investments. Not confined to the stock market, this also includes "work" like starting your own business or writing a novel. The payoff may come, or it may not. It logically follows that investment is based on a certain amount of risk. If this income gets taxed at the same rate as regular hourly or salary income, it further deincentivizes the creation of new small businessees, the maintenance of already-existing ones, or the investment of money into the stock market, which will further stall the economy. I often tell my 10-year old son: "Engage the brain." Good advice for the Obama campaign. (p.s. President Clinton lowered the capital gains rate from 28% down to 20%. Was he partly to blame for this "problem"?)
03:53 PM on 10/10/2012
This post was truncated, even though I came in under the word limit. (Shrugs.) However, as a conservative on the HuffPost, I'll take what I can get.
photo
HUFFPOST SUPER USER
Nomccain
11:35 AM on 10/09/2012
This campaign, so far, has seemed to expose Americans as uninformed, easily mislead, and having a tendency to believe lies, even when exposed. It's not a bright picture of voters in this country and there will be so many in the South, Southeast, and Southwest primarily that will be mislead by Republican lies and vote against their own best interests by voting Republican. One question that should be asked by the Democrats is this: When has the Republican Party ever done anything for the common working man and women or our Seniors? We have Pastors in pulpits all over the south telling their congregations on Sunday that they should vote Republican because of their Christian values, which is beyond absurd. Republicans have become about as un-Christian with their policies and agenda as anyone ever could and could never pass the test of "What would Jesus do." I guess you could chalk it up to stupidity. I can't think of any other answer. Cut funds for Seniors, give more to the military for war, cut citizens off from health insurance, give more to the money changers, etc. Get the picture Christians or rather carnel Christians who value money more than beng Christlike.
03:30 AM on 10/09/2012
Debate theatrics and game tactics aside, here is what they *have not* taken back so far:

Mitt Romney/Paul Ryan, if elected, still intend to:

1) Fight to have Roe v Wade overturned (women's right to terminate unwanted pregnancy)

2) Undo the Affordable Care Act (affecting young adults through age 26, all folks with pre-existing conditions, and millions more who have no or not enough insurance)

3) Appoint 1-2 more conservative judges to the Supreme Court for life if they can (affecting cases loooong after neither one of them are in office, see Bush v Gore and election year 2000)

4) Make deep cuts to Medicare and Social Security. If you have aging parents/grandparents -who aren't rich- you may have noticed these programs are already barely enough to assist them. Keep living and retire, you'll find out for yourself. You better be rich.

5) Defund public television. What else is on that will promote learning and provide nonpartisan information to our society and future generations? Honey Boo Boo? Really?

Lastly, I'm sorry, but I must question any *adult* tied to a religion that involves a planet not even in our solar system (Kolub).

Mr. Romney, you cannot be U.S. President at this time. However, we will keep your resume on file. Thank you.

VOTE OBAMA 2012...and down ballot Democrat on your local tickets. Don't let this country revert back to the 1950s! Unless you were a WASP, the decade was not all that fabulous!
MHT73
words matter
08:25 AM on 10/09/2012
Agreed!
One quibble - not all WASPs are wealthy, and it wasn't necessarily a fabulous decade for them, either. Some WASPs are women who had to figure out how to support their children in a time of blatant discrimination, the list goes on.
01:25 PM on 10/09/2012
Quite true, the moment I hit the Post button I thought of the women. But while wealth would naturally be the preference for anyone, the WASP male typically had more privilege over all other groups with or without it.
02:56 PM on 10/09/2012
Roe v. Wade is in the hands of the Judicial, not the Executive. Sadly, Romney and Ryan are largely unable to overturn it. (Shrugs.) Meanwhile, we've exceeded 50 million abortions since the ruling (and counting). What does that say about us as a civilization?

We were told that the ACA made good economic sense. If that were true, private companies would quickly flock to it. Instead, companies are requesting waivers in droves. Why?

President Obama also appointed "judges to the Supreme Court for life." That's within the purview of the President, like it or not. As those on the left reminded us, "Elections have consequences."

The Romney/Ryan plan does not affect the Medicare option for those older than 55. Again-- if Medicare makes such great economic sense, why are doctors starting to refuse to take patients covered by it?

Do you honestly think that if PBS were defunded, that any television network in their right mind would not pick up Sesame Street the same day? It's a ratings and merchandising goldmine. Why must taxpayers pay for something that is already self-sufficient?

Lastly, I thought that those on the left encouraged us all to "coexist"-- at least that's what's on all of those bumperstickers. Mocking someone's religion was off-limits when talking about Jeremiah Wright, but for some reason not off-limits when talking about Mormons? How tolerant.

p.s. It's "Kolob," not "Kolub." If you're going to be a bigot, please be an intelligent one.
06:04 PM on 10/09/2012
Thanks for correcting my spelling of a planet that I did admit being unfamiliar with. However an occasional misspelling does not make me unintelligent. Now calling someone you don't know a bigot and presuming they lean to the 'left' however, would raise questions over who is ignorant and who isn't. There is more to consider than 'right' or 'left' on ideas and issues that affect our world. Education and travel are quite liberating in providing that understanding.

I am also aware of the duties of each branch of government. My concern is over Romney's outright desire to strip women of the right to make their own medical choices, not over his ability to carry this through. An ability to make another appointment to the Supreme Court though, would surely further this agenda over time.

As for the other points, thanks for taking the time to read and respond. We could argue all of these points but I tend to not take time for such with strangers - *especially* ones who early on present themselves as unreasonable via personal attacks.

The beauty of America - and the Huff Post - is that we can all post our opinions on issues like the Presidential candidates' agendas, without directly attacking individuals for their posts.

Cheers!
HUFFPOST SUPER USER
Manx
02:09 AM on 10/09/2012
Politics in the U.S. has become theater. That's why fact-checking doesn't work. The "low-information" voters couldn't care less. That's why Obama must overcome his predilection to stay above the fray and come out swinging. He must not overdo it, of course, but he's got to get energized. He has said before that his daughters mean more to him than anything. If I were an advisor, I would suggest that he pretend that he must win the debate to keep them from being humiliated. That might be a motivating factor.
11:35 PM on 10/08/2012
Hope is not a strategy. Yes we can does not help us make tough choices. We need real executive leadership and hands on management over the next four years. If obama does not instill confidence in voters that he is ready to lead in the next two debates, the election will swing the other way. How can he not see this? Is it just all yes men all the time in the white house?
photo
RRonin
Fortune favors the brave
10:37 PM on 10/08/2012
Whoever told Obama that the way to win the debate was to go all Woodrow Wilson on Rmoney should be sent packing!
photo
HUFFPOST SUPER USER
coreten
08:24 PM on 10/08/2012
The President has a lot to chew on between now and then. But I have to put the majority of the blame on his handlers. They are the ones who were supposed to come up with a proper preperation and they failed royally on that. Sometimes the overconfidance can verywell lead to be the last thing one ever sees.
CrustyCSM
the liberals nightmare
08:23 PM on 10/08/2012
OK,,, I will give the benefit of the doubt that it is a 30 year trend that got us where we are today. However, a man was put in office that PROMISED to cure many of our ills. And with all the money and leverage he was afforded,,,, we have seen next to nothing. Worse,,, he shows no potential or interest in working to fix things......
09:20 PM on 10/08/2012
When are you guys going to start looking at the people YOU put in Congress. The President Assumed Congress would work with him just as Romney assumes the Dems will work with him. Well guess what- if they do Ill be the first to vote them out of office. Tit for tat.
CrustyCSM
the liberals nightmare
08:25 AM on 10/09/2012
Lesson 1,,,, never assume things will ALWAYS go your way.
Obama shows he cant adjust and overcome. If he cant muscle his way through things, then he is helpless. Working with the other side is not an option for him.
HUFFPOST SUPER USER
Sam Bark
It's a MAD world after all...
11:42 PM on 10/08/2012
crusty -- Well said F n F.
photo
HUFFPOST SUPER USER
keyman125
07:00 PM on 10/08/2012
Very good article especially regarding the facts. But the average voter has a very short memory for the facts and if you can change those facts into lies and repeat them enough times the lies become the facts.

Why did Obama win in 2008? Simple those who are the real power behind the throne knew of the problems that would arise because of the Bush years, and if they kept they power they and the Republican party would be blamed so they put up poor John McCain full well knowing he would lose. Obama could not have solved the problems in 4 years so they waited until now to try to get the power back. Will they get it legally? How quickly we forget 2000 when Al Gore lost a protracted legal battle. Could it happen again? Have they also been polling and are ready to manipulate say Ohio this time to either win or take it to court? Think about it??
photo
Pole
retired professor of History, Comparative Religion
06:07 PM on 10/08/2012
I see real problems with the next two debates for a number of reasons. The first is the personality of our president. He doesn't like confrontation so will seek reconciliation even when it is not appropriate. The Republican policy makers knew that when they allowed him to win. A Republican president four years ago would have ended that party. Secondly, handlers instinctively try to play to their boss's strengths which in this case is intellectual discussion not aggressively pointing our lies and deceptions. Thirdly, Republicans act smarter and surer than Democrats. Why change now? Fourthly, this administration made the wrong friends at the beginning. Thank the total inexperience of the man now holding office who needed advice. Obama tried to position himself as a friend of the big banks and corporations. They don't want him. Thus, no money lent to homeowners and no jobs. The spare billions goes to Wall Street, Fifthly, Obama's rhetoric during his campaigns demonstrated a progressive. That's why people voted for him. They are smarter than he is and remember what he promised. For many its a choice between the rich and the not as rich. Finally, America is now controlled by the super rich, the big banks, large Corporations, Medical providers, Insurance companies, the top military, the investor class and ignorant whites who never wanted a black man sitting in the White House. That leaves the shrinking labor force, Intellectuals, minorities and die hard Democrats. Sounds evenly divided with billions spent on winningfor Republicans
photo
HUFFPOST SUPER USER
StopThe545
Dismantle the Political Class
05:48 PM on 10/08/2012
The President has been directly challenged twice while in office: The Jorge Ramos Univision interview & the 1st Presidential debate.

His "facts" are rarely scrutinized, so his edge would naturally get dulled. Mitt Romney has been attacked since the primaries in 2008 & 2012. As a result he learned how to defend his positions & counter his opponents more effectively than an incumbent President who has existed in a sycophant environment since at least 2008.
05:42 PM on 10/08/2012
He's right about a 30-year trend that has impacted employment in the U.S. But it's less to do with individual income tax policy and more to do with policies that make the U.S. less competitvie in the global market place for job creation. When the U.S. has much higher taxes, regulation and litigation its little surprise that companies around the globe avoid bulding plants and service centers in the U.S. in favor of China and other locations, especially when wages are also much lower in those areas. Our middle class jobs have gone offshore not because of low individual income tax rates, but because of a business environment that's not attractive to job creators.
Citizen54
Conservatism is a con job!
12:53 AM on 10/09/2012
US companies move jobs offshore because of lower labor costs. It has nothing to do with US government regulations or, as you cons and fascists call it, overregulation. Talk to anyone involved in outsourcing. It's all about the labor arbitrage, baby.
10:31 AM on 10/09/2012
Granted labor cost is a huge contributor to the decision on where to source production, but short of somehow reducing wages for American employees ( which I don't think we want) seems as though the other ways to be competitive globally is reduce business taxes, simplify (not eliminate) regulations and reduce litigation. To reduce the level of business taxes I'd be a supporter of raising taxes on wealthy individuals. 
05:17 PM on 10/08/2012
What made it difficult is all the half truths the democrats spewed before the debates> It is difficult to call the other person a liar when he has already rightly called you out. And the President's performance showed exactly that.

You are correct. Going back to try to call Romney the 'liar' is a FAIL
05:02 PM on 10/08/2012
The President seemed severely unprepared to field Romney's remarks, which caused him to have a "deer in the headlights" glazed demeanor. He should get a new debate team and practice strategies based on whatever tack Romney might take. He was so obviously unready that he had to fall back on his talking points. President Obama is really good at one-liners extemporizing, and appearing to be spontaneous even with canned remarks. His current debate team failed miserably, it's unacceptable and inexcusable.