To Create Jobs, We Must Invest In America!

The Pretenders, the GOP/Tea Party's, "mission" is to sell to the American people the "bill of goods" that we Need less government, after all, government will only get in the way of their fraudulent schemes and try to hold them accountable to people and not to corporations! 

Then, they pretend that they want to lower taxes for the American people knowing full well that the loopholes they created for the wealthy means that Corporations and wealthy Americans pay very little taxes or No taxes at all, so that every-day Average Americans have to carry and Shoulder all the tax burden.

Then they pretend they want to Create Jobs in America, but to Create Jobs, you must Invest in America.  Yet the Party of No always vote Nay to any    any spending for America's crumbling and decaying roads, streets, sewer system, infra-structure, high-speed rails, and public education (to further "dumb-down" Americans)!  They vote No to any Investment in America's water, air, clean energy and her people.  They know that Investing in America means TO CREATE JOBS! 

On the otherhand, they don't mind rewarding companies who create jobs overseas or to spend and invest millions of dollars on Wall Street stocks and bonds, phony ponzi schemes and real-estate deals.  
They do this while watching America continue to further decline and decay into a third-world country, because the Simple and Awful truth, is that Republicans do not want, and they Fear, a government for the people and by the people.  Their desire is for America to go back to the times when the rich get richer and the poor get poorer!  That's what they are fighting for, not for average Americans, but for their greedy way of life and for power.

How long before Americans wake up and realize that the Republican Party is a party for the wealthy, and that they will do anything and say anything to keep their power over the people.  They pretend to be Christains but everything they say and do is un-Christ like.  On the otherhand, the Democratic Party has always been inclusive and a party for the  people.  When the Democrats try to Invest in America to heal America, they always come up against filibusters, lies, swiftboating, pretense and dishonesty.  Now, the Pretenders are trying to "convince" Americans that this depression and loss of jobs began when President Obama took office and that he is to blame for all of America's problems.

For America to turn to her former ways of prosperity and generosity, we must say No to the Pretenders, professional liars without a conscience.  We must finally get off  this "yellow-brick" road to nowhere but down!   We must stop being  fooled by the Wizards behind a curtain of deceit!  We can vote No the Pretenders on November 2nd and begin to take our country back from greed, dishonesty and deceit.

 

 

 

The Weekly Audit: One Nation With No Jobs

by Lindsay Beyerstein, Media Consortium blogger

Tens of thousands of Americans rallied for jobs and justice at the Lincoln Memorial in Washington, D.C. on Saturday. Organizers say that 175,000 people turned out for the One Nation Working Together rally, which was organized by labor unions, the NAACP, and other progressive groups. In an interview with GritTV's Laura Flanders, AFL-CIO president Richard Trumka, a leader of the One Nation coalition, summed up the agenda: "Jobs, jobs, and more jobs."

America isn't working

In total, 8 million jobs have been lost in this recession and 2.5 million homes have been repossessed. According to the official figures, about 10% of Americans are unemployed. The true number may be much higher because the official stats don't count those who have given up looking for work. In AlterNet, NAACP President Benjamin Todd Jealous, another featured speaker at One Nation, points out that the black unemployment rate is nearly twice that of whites. Another 11 million Americans are underemployed, according Trumka.

No end in sight

An already bleak job market is about to get even bleaker. Last week, Senate Republicans scuttled a popular emergency fund to create jobs and an extension of long-term unemployment insurance benefits, as Andy Kroll reports in Mother Jones.

Steve Benen of the Washington Monthly offers more details on the now-defunct job creation program known as the Temporary Assistance for Needy Families (TANF) emergency fund. The fund provided cash to create jobs in the public and private sectors. Over 240,000 people in 32 states and the District of Columbia worked at jobs created with TANF subsidies. Last week, Senate Democrats lost their fight to extend the program for another 3 months. With the TANF money gone, layoffs will soon follow.

The Department of Labor will release the its monthly unemployment statistics on Friday. One group of independent analysts predicts that September's unemployment rate will be higher than the previous month, according to Brian Beutler of Talking Points Memo. Unemployment rose from 9.6% in July to 9.7% in August and experts surveyed by Bloomberg News expect the trend to continue. It's doubtful that the economy produced enough new jobs to make up for all the census workers whose temporary jobs ended.

Job skills for America

On the bright side, President Barack Obama is scheduled to unveil a new job training program this week, Annie Lowrey reports in The Michigan Messenger. The program is called Skills for America’s Future. The goal of the project is to encourage partnerships between community colleges and corporations. Colleges and companies will work together to identify areas of rapid job growth and train students to fill those jobs. So far, five companies have agreed to participate in the program, including the Gap., Accenture, United Technologies, PG&E and McDonald’s.

Lowrey argues that this kind of training program will do little to help unemployment in the short term. Right now, companies aren't hiring because there's an economy-wide lack of demand, not because they can't fill positions for lack of trained workers. Demand is low because unemployment is high. Quite simply, people buy less when they don't have jobs, or fear that they will lose their jobs. It's a Catch-22. The jobs won't come back because not enough people have jobs.

Food stamps are stimulus

At the most basic level, an economic stimulus package is designed to break the no jobs/no demand/no jobs impasse by injecting large amounts of cash into the economy. Extending unemployment benefits makes for very effective stimulus because the unemployed typically spend their money quickly. Food stamps are another very efficient stimulus because recipients redeem them right away. To give you some indication of how quickly, consider the Wal-Mart at Midnight effect, which Lowrey discusses in the Washington Independent.

Wal-Mart managers are noticing that increasing numbers of customers are buying staples like bread, milk, and baby formula at midnight on the first of the month. That's because state governments directly deposit welfare and food stamp benefits into debit accounts at midnight. Wal-Mart says it brings in extra staff to keep up with the influx of customers during this period.

By contrast, tax cuts are an inefficient stimulus, especially if the cuts go to people who are already wealthy. In tough times, people who already have everything they need may prefer to save their extra money instead of blowing it on luxuries. Rich people will not throng Best Buy at midnight on tax refund day, no matter how big their checks are.

The high cost of economic inequality

It would be nice to think that unemployment is part of a cyclical downturn, but there is mounting evidence that short-term unemployment is a symptom of a deeper problem: pervasive and growing inequality. Sam Petulla of the American Prospect interviews economist Jacob Hacker and political scientist Paul Pierson about their new book, Winner Take All Politics: How Washington Made the Rich Richer and Turned its Back on the Middle Class.

The authors note that the U.S. has greater inequality than other industrialized countries. Since the 1970s, the richest Americans have gotten much richer while the rest of us lagged further behind. The authors found that almost 40% of household income gains from 1979-2007 went to the richest 1% of households. The trend is accelerating: the top 1% of households pocketed over half of the economic gains of the 2000s. Hacker and Pierson blame tax cuts for the wealth, lax financial regulations that allow the wealthy to rake in unprecedented profits, and stagnating middle class wages for the widening gap between the ultra-rich and the rest of society.

This brings us back to the old demand/jobs paradox. Contrary to the platitudes of trickledown economics, shoveling an ever greater share of society's resources to the ultra-rich doesn't make everyone else better off. Shocking, right?

Right wing economists say that letting the ultra-rich accumulate still more wealth is good for the economy as a whole because the rich have more money to invest in businesses, which are the main source of jobs. The ultra-rich aren't stupid, however. They aren't going to start businesses unless they foresee demand for goods and services; and everyone knows that demand is flat because there are no jobs. Trying to stimulate the economy by making the rich richer is like shoving money into a black hole. The tried and true way to end a recession is to create jobs and provide social services for people who need the money enough to spend it.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

The China Blames Game

Cross-posted at River Twice Research.

So bipartisanship isn’t dead. By a vote of 348-79, Democrats and Republicans alike put aside their acrimonious differences and agreed, at least for a moment, to stop blaming each other for the sad state of American economic life. Instead, they agreed to blame China.

The bill authorizes the president of the United States to impose tariffs on Chinese goods in response to what it considers an illegal subsidy of Chinese exports in the form of an undervalued currency. It helps that the supporters in the House know that this bill has precious little chance of becoming law; it will not pass the Senate and it is unlikely that it would be signed into law by Obama if it ever came to that. As a result, the bill is the perfect campaign gesture, bombastic, angry, self-righteous, and without much real-world consequence.

The office AFL-CIO union leader Richard Trumka issued a statement that encapsulated the thinking behind the bill: “the House of Representatives voted to put an end to the Chinese government’s currency manipulation, which has destroyed millions of good American manufacturing jobs. For more than a decade, the Chinese government has deliberately manipulated the value of its currency, ballooning our trade deficit with China and costing American communities good jobs….Working people continue to mobilize to elect candidates who will put America’s workers first and are committed to rebuilding an economy that values working people. This November we will send a powerful message that we will support those who vote for an economy that works for everyone.”

 

There's more...

It's time to get behind Byron Dorgan...

Dorgan (D - North Dakota) is the Senator who introduced legislation, S. 260, to shut down a tax loophole that rewards U.S. companies that move U.S. manufacturing  jobs overseas. The legislation would close the loophole that allows U.S. multinational companies to defer paying income taxes on profits they make from the U.S. sale of the products manufactured in foreign factories, until those profits are returned to the United States, if ever.  Manufacturers who remain in the United States receive no similar subsidy.

While passage of this law has obvious benefits for the U.S., it has been something Dorgan has been trying to get through for ten years.

    "You may not believe it, but when a U.S. company closes down a U.S. manufacturing plant fires its American workers and moves those good-paying jobs to China or other locations abroad, U.S. tax law actually rewards those companies with a large tax break called deferral. The tax code allows these firms to defer paying any U.S. income taxes on the earnings from those new foreign-manufactured products until those profits are returned, if ever, to this country. If a company making the same product decides to stay in this country, it is required to pay immediate U.S. taxes on the profits it earns here."


- Senator Byron Dorgan

Examples of products that used to be manufactured in America but now are being made in China or Mexico or other countries? How .about Nabisco Fig Newtons, which are now made by 50¢ per hour workers in Mexico. Or Huffy Bicycles, formerly made in Ohio, now made in China by 33¢ per hour workers. Or Etch-a-Sketch. Or La-Z-Boy furniture. Or Fruit of the Loom underwear. The list goes on and on.


And we support the outsourcing of products in two ways. When we go to Wal-Mart or K-Mart (companies that demand our products at the lowest prices) and purchase them we give tacit support to the throwing away of American jobs. But that isn't the only way we support major corporations who screw Americans out of their jobs...we give them tax breaks for doing it! These are called "Deferrals" and they are totally legal.

There's more...

It's time to get behind Byron Dorgan...

Dorgan (D - North Dakota) is the Senator who introduced legislation, S. 260, to shut down a tax loophole that rewards U.S. companies that move U.S. manufacturing  jobs overseas. The legislation would close the loophole that allows U.S. multinational companies to defer paying income taxes on profits they make from the U.S. sale of the products manufactured in foreign factories, until those profits are returned to the United States, if ever.  Manufacturers who remain in the United States receive no similar subsidy.

While passage of this law has obvious benefits for the U.S., it has been something Dorgan has been trying to get through for ten years.

    "You may not believe it, but when a U.S. company closes down a U.S. manufacturing plant fires its American workers and moves those good-paying jobs to China or other locations abroad, U.S. tax law actually rewards those companies with a large tax break called deferral. The tax code allows these firms to defer paying any U.S. income taxes on the earnings from those new foreign-manufactured products until those profits are returned, if ever, to this country. If a company making the same product decides to stay in this country, it is required to pay immediate U.S. taxes on the profits it earns here."


- Senator Byron Dorgan

Examples of products that used to be manufactured in America but now are being made in China or Mexico or other countries? How .about Nabisco Fig Newtons, which are now made by 50¢ per hour workers in Mexico. Or Huffy Bicycles, formerly made in Ohio, now made in China by 33¢ per hour workers. Or Etch-a-Sketch. Or La-Z-Boy furniture. Or Fruit of the Loom underwear. The list goes on and on.


And we support the outsourcing of products in two ways. When we go to Wal-Mart or K-Mart (companies that demand our products at the lowest prices) and purchase them we give tacit support to the throwing away of American jobs. But that isn't the only way we support major corporations who screw Americans out of their jobs...we give them tax breaks for doing it! These are called "Deferrals" and they are totally legal.

There's more...

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