Do Tax Cuts Create Jobs?

-- by Dave Johnson

In California the right, funded by oil companies, has an initiative on the ballot to stop implementation of our CO2 law "until unemployment reaches 5.5 percent." The point is to make people think that the CO2 law causes unemployment.

The idea that a payroll tax cut (i.e., Social Security tax) will help create jobs is the same thing -- cutting taxes to boost employment makes people think taxes cause unemployment. The net result is that we can't get infrastructure, schools, courts, etc. funded.

Tax cuts might provide some stimulus because they force more borrowing, but really, how many employers are going to hire people because payroll taxes are a bit less? What are they going to hire them to do, read the paper? Compared with how many employers would be doing anything they can to bring on employees if customers were pouring through the door?

-- Posted by Dave Johnson at 8:44 AM PST on September 06, 2010.

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Oct 2 March On Washington For Jobs And Change

-- by Dave Johnson

Please click through: One Nation Working Together

DEMAND ALL THE CHANGES WE VOTED FOR

-- Posted by Dave Johnson at 9:02 AM PST on September 05, 2010.

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Zombie Lies Never Die

-- by Dave Johnson

Andrew Breitbart: The man behind the Sherrod affair - latimes.com,

Last fall, Breitbart made his first big splash. He posted an undercover video in which a pair of conservative activists posing as a prostitute and her boyfriend asked employees of the community group ACORN for help with a brothel that would house underage Salvadorans. ACORN was embarrassed when some of its workers seemed too helpful; Congress responded by defunding the organization.

1) They were not dressed as a prostitute and pimp. The guy wore a dress shirt and khaki pants, and said he was hoping to run for Congress.

2) The videos were doctored to make it look like the ACORN employees did something wrong, when they did not. Several independent investigations have reached this conclusion.

Several ACORN offices threw them right out the door.

3) ACORN employees who were represented in the videos as assisting a prostitution ring actually called the police on Brietbart's employees. One is even suing because of the false representation.

But none of this matters because Congress defunded ACORN in response to the Brietbart / FOX News / Drudge Report smear.

-- Posted by Dave Johnson at 6:22 PM PST on September 04, 2010.

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American Jobs Tragedy

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture as part of the Making It In America project. I am a Fellow with CAF.

The stimulus worked but was not enough. Here is the result:

This is known as "the scariest jobs chart," from Calculated Risk.

Robert Reich: The Great Jobs Depression Worsens, and the Choice Ahead Grows Starker

The number of Americans willing and able to work but who cannot find a job hasn't stopped growing since the start of 2008. All told, about 22 million Americans are now jobless. Add in those who are working part-time who'd rather be working full time, and we're up to 25 million.

And because most families depend on two paychecks, the practical impact is almost double.

The DC and business elite don't feel it. They explain the problem by blaming the people they put out of work, saying the unemployed are just lazy, and unemployment checks keep them from looking for work. They're doing just fine and taking good care of each other.

Frank Sobatka describes one of the main reasons for the problem:

Frank's right. Our choice is to manufacture or borrow (until we can't.) Other countries are being smart on trade. Why aren't we? We really, really need an industrial policy to guide us back to growth. We can build a new economy from old roots. I mean, what were we thinking? We turned our companies into buy-sell commodities with our country and people as "costs." So we ended up caught in a machine that grinds us up. This has led to and attitude that citizens are an infestation, if you feed them they breed, like "the help" -- you have to make them work, certainly no longer as the people in charge.

We thought moving a factory was "trade," when it is really about evading democracy's protections of We, the People. We didn't see that Wall Street was at war with the real economy and We, the People, paying out $140 billion for bonuses but zero for America's future. We thought getting back to "normal" was an option. But really, It's The Economic Paradigm, Stupid!

Here's another part of the problem: Tax cuts are theft. Our investment in infrastructure created the conditions that enable commerce to prosper – the bounty of democracy. In return we ask those who benefit most from the enterprise we enabled to share the return on our investment with all of us – through good wages, benefits and taxes.

What Can We Do?

Here are parts of the solution: We need a democracy tariff at the border to stop greedy employers from stepping around the wage, safety and environmental protections that We, the People fought to build. We need to tax the wealthy and Wall Street to pay to fix up the infrastructure and public structures that enabled their wealth. Tax Cuts Leave Nothing Behind -- Infrastructure Investment Leaves Behind Infrastructure. Not only that, Tax Cuts Caused The Deficits, Therefore...

Where Are The Jobs, Jobs, Jobs, Jobs, Jobs, Jobs? It's The JOBS, Stupid! Why DC Elites Don't See This?

P.S. if you have time, please click the links.

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-- Posted by Dave Johnson at 1:07 PM PST on September 04, 2010.

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Down With Tyranny

-- by Dave Johnson

You don't read DownWithTyranny! often enough. I know I don't.

-- Posted by Dave Johnson at 9:10 AM PST on September 04, 2010.

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Labor Day: Labor Got It Right -- Who Could Have Known?

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture as part of the Making It In America project. I am a Fellow with CAF.

"Who could have known?" That's the cry from the big-corporate and DC elite as the economy and the environment and so many imporant things crash around us. (Around us, not them, they're doing just fine and taking good care of each other.)

Who could have known that 25%-per-year house price increases was a bubble?
Who could have known that a housing bubble could burst?
Who could have known that deregulating the financial industry could lead to a financial meltdown?
Who could have known that concentration of wealth could cause consumer demand to dry up?
Who could have known that huge tax cuts for the rich combined with huge military spending increases could cause massive budget deficits?
Who could have known that the Social Security trust fund needed a "lockbox" so it wouldn't be given away as tax cuts?
Who could have known a deregulated deep-water well could cause a massive, destructive, uncontrolled underwater gusher?
Who could have known that continuing to put carbon into the air would cause problems for the climate?
Who could have known that moving our factories out of the country would lead to high unemployment and structural trade deficits?
Who could have known that invading Iraq was wrong and a deadly, disastrous, costly, long-term mistake?
Who could have known that a too-small stimulus that focused on tax cuts wouldn't turn the economy completely around and then conservatives would claim that the stimulus "killed the recovery?"

(List continues into infinity...)

Add organized labor to the list of those who got it right, time after time.

Organized labor was right about the 40-hour workweek.
They were right about the middle class.
They were right about the weekend.
They were right about paid vacations.
They were right about paid holidays.
They were right about paid sick leave.
They were right about providing good, secure retirement plans for everyone.
They were right about providing unemployment benefits to tide people over.
They were right about providing maternity leave, child care and family leave for families.
They were right that trade agreements like NAFTA and letting China into the WTO would lead to massive trade deficits and job losses.
They were right about workplace and consumer safety.
They were right about keeping manufacturing in America.
They were right about fighting discrimination in the workplace.
They were right about raising the minimum wage and the effect that low-wage policies would have on the economy.
They were right about the effect of excessive CEO pay on the economy.
They were right about the devastating effect of the Bush tax cuts.
They were right about the need to maintain and modernize our country's infrastructure.
They were right about going green.
They were right ab out the dangers of Wall Street's financialization of the economy.
They were right about providing good health care to everyone.
They were right about strengthening, not cutting Social Security.
They were right about democratizing corporate governance.
They were right about fighting privatization.
They were right about fighting deregulation.
They were right about providing good education opportunities to everyone.
They were and are right that we need a national jobs agenda
Labor was right about people joining together instead of being on our own.

(List continues into infinity...) They were right and they continue to be right.

And unions have been fighting for these things for all of us, not just for their members.

Please add to these lists in the comments! What other things could nobody have known, and what other things did labor get right?

Enjoy Labor Day. In fact, for those of you that still have jobs after the decades of conservative policies, enjoy having weekends off, the 40-hour week, paid vacations, sick pay, health care, etc. And if you have a job but don't have those things ... JOIN A UNION!

P.S. Here's an example of being right:

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-- Posted by Dave Johnson at 12:12 PM PST on September 03, 2010.

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JOBS: Romer, Leaving WH, Says More Stimulus Needed. Right Says Stimulus Killed Recovery

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture as part of the Making It In America project. I am a Fellow with CAF.

Before I start this post, let's look at the actual situation. The economy is terrible, people are really hurting, they have been holding out and are starting to drop off the map. There are signs that with the stimulus fading things are starting to turn back down. But compared to what?

The overall jobs picture:

The manufacturing jobs picture:

Finally, the huge deficits. The context of this next chart is that Bush's last budget year left us with a $1.4 trillion deficit! The projected budgets from this President will cut this in half in the next few years.

You can see for yourself from the pictures. (chart source) Under conservative policies everything was spiraling downwards. The stimulus clearly worked and stopped the death sprial, but was not enough. According to the Congressional Budget Office,

The massive U.S. stimulus package put millions of people to work and boosted national output by hundreds of billions of dollars in the second quarter, the nonpartisan Congressional Budget Office said on Tuesday. . . . CBO said President Barack Obama's stimulus boosted real GDP in the quarter by between 1.7 percent and 4.5 percent, adding at least $200 billion in economic activity.

It raised employment by between 1.4 million and 3.3 million jobs during the second quarter of this year, CBO estimated.

The stimulus worked but was not enough. Economists Agree: Stimulus Created Nearly 3 Million Jobs,

Eighteen months later, the consensus among economists is that the stimulus worked in staving off a rerun of the 1930s. [. . .] It's no surprise that the administration would proclaim its own policies a success. But its verdict is backed by economists at Goldman Sachs, IHS Global Insight, JPMorgan Chase and Macroeconomic Advisers, who say the stimulus boosted gross domestic product by 2.1% to 2.7%.

The stimulus worked but was not enough.

What Now?

In the context of this picture of the economy, President Obama's economic advisor Christine Romer is stepping down. In her departing speech she said that the economy needs more stimulus to get us to the point where private business is again driving the economy. Romer Calls for More Stimulus,

U.S. Council of Economic Advisers Chairman Christina Romer, in her final speech before stepping down, called on the country to stomach new stimulus measures to lift the lackluster economy, even in the face of growing fears about the nation’s deficit.

“Concern about the deficit cannot be an excuse for leaving unemployed workers to suffer,”

The clear conclusion from all available evidence: The stimulus worked, but it was not enough. In addition, in an effort "to attract Republican votes" that never came, 1/3 of the stimulus was wasted on tax cuts that leave nothing behind but debt. Much of the package was emergency relief for the unemployed, the states, and other emergency safety net programs but won't contribute to job-creation and reviving business. Only a fraction went to infrastructure, which is the soil in which business thrives and the country maintains its worldwide competitiveness,

The American Society of Civil Engineers puts the bill’s infrastructure spending at $71.8 billion, or less than one-tenth of the package.

The stimulus worked but was not enough. Economists are calling for more stimulus and extending unemployment benefits.

What The Right Says

Meanwhile conservatives are placing their bets on benefiting from a worsening economy, and so are blocking things that might help. Conservatives correctly believe that the worse the economy is doing, the better the chances that they will pick up more House and Senate seats in the coming elections. So it is in their interests to make sure that is what happens. Capitalizing on the shock the nation felt when it heard about the size of the deficit the previous administration left behind, conservatives are trying to block attempts to add stimulus.

And with the original not-enough stimulus fading, the right is trying to drive a narrative that "government spending kills jobs." This follows decades of "tax and spend" rhetoric that claims that "taxes take money out of the economy," "government spending slows the economy" and similar nonsense. The original "starve the beast" plan to kill government and democracy by denying them the funds they need is on the verge of succeeding.

To drive this strategy they claim that it is the stimulus itself which has kept the economy from recovering. Newt Gingrich, in Fire the Job Killers,

The big government stimulus bill, the tax increases of the health bill, the plan to let the 2003 tax cuts expire, and the massive growth of government under the Obama Administration are all actions directly attributable to this administration which have killed jobs.

Gingrich even claims that helping the unemployed, not the recession, is the cause of the unemployment!

A few weeks ago in this newsletter, I cited a study by Robert Barro which estimated that without the extension of unemployment benefits to 99 weeks, the unemployment rate would be 6.8% instead of 9.5%.

Republican House leader John Boehner recently gave a speech on his economic plan in which he said that the economy is "stalled by ‘stimulus’ spending" and "each dollar the government collects is taken directly out of the private sector." (An NDN study found that following the Boehner economic plan will add $4.188 trillion to the debt.)

Some other voices on the right:

Murdoch's NY Post: Romer admits stimulus failed

Dr. Christina Romer is leaving the Obama administration, and in her final speech she admits that the stimulus did not work to revivie the economy as she had hoped and as President Obama promised.

Malkin's Hot Ait: Romer: We had no clue … and still don’t

Instead of cutting taxes (especially capital gains taxes) and reducing regulation to entice new investment, Barack Obama and Congressional Democrats chose to chase a government takeover of health care, a massive tax on energy production that would penalize expansion and growth, and expanding the jurisdiction on Wall Street of the same agencies that had watched the collapse come and did nothing about it.

These are just a few samples from the drumbeat.

America faces a choice. The stimulus worked but was not enough. So we can proceed with "reality-based" solutions that have helped, and demand more stimulus, or we can go back to conservative policies that killed the economy.

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-- Posted by Dave Johnson at 1:54 PM PST on September 02, 2010.

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How Companies Turn People Against Unions

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture as part of the Making It In America project. I am a Fellow with CAF.

If you had a company and could make people work for free, keeping all the proceeds just for yourself, you might do that. If you could. What’s stopping you? There are plenty of unemployed people in the country and in the world – more every day thanks to population growth, and computers and machines doing more of the work that needs to be done. So if someone complains, you can just replace them with someone who doesn’t complain. You have the power. So what’s stopping you?

As a working person, how do you negotiate for fair pay, benefits and rights where you work? People in a job can be on their own against a lot of power, taking whatever the employer is willing to trade for their work. Or they can join with the rest of the employees at the workplace and negotiate as a group. Banding together to fight for a fair share is called organizing into a union.

People who own companies think that the company is their “private property” and they can do what they want with it, regardless of the effect on the people who work there or the surrouding community. Their goal is to make as much money as possible and to do that you lower costs as much as possible. Those costs include the cost of disposing of harmful waste products, the quality and safety of the products produced, and the pay and benefits you provide workers. In this equation unions are a problem. They have the power to make you pay more and provide safety and benefits, so they are in the way of keeping as much as you can just for yourself.

Obviously the greater society -- the people who make the rules that companies are supposed to follow -- has very different interests from the people who own companies. Society wants to avoid being exposed to harmful waste products, and wants the people in the society to be paid well and have good benefits. Society wants healthy communities. Society wants good and safe products that don't use up our resources. The people in the society are generally going to want rules that lead to better results for the greater number of people. Unless they can be convinced otherwise.

So the owners of companies try to convince us that unions are bad. They form and fund "business groups" like the Chamber of Commerce, to fight to keep unions from having the right and power to organize their workers. We hear it repeated over and over in our corporate-dominated society, a drumbeat that labor unions are sinister, shady, harmful, corrupt, violent, “raise prices,” ”cost jobs,” and generally hurt the economy and country. We hear they force workers to pay dues (never mind that unionized workers pay the dues from higher pay and benefits.) We hear that "union bosses" tell workers what to do and "union thugs"make them do it. Nothing could be further from the truth, of course. The owners of companies have a lot of money to spend on convincing the public to let them have free reign, and they know from selling products how to sell things to the public. Repetition, repetition and repetition. Marketing works.

This Labor Day weekend we can expect to hear even more of this. Business groups plan Labor Day blitz against Senate Dems, candidates,

Local chapters of groups like the National Federation of Independent Business, state Associated Builders and Contractors and other commerce and retail groups will hold events on Monday targeting the incumbents and candidates, particularly on their stance on the Employee Free Choice Act (EFCA, or "card-check").

But you shouldn't expect to see, hear or read on any corporate-owned TV station, radio station or newspaper about the benefits to people from joining a union. Think back and see if you can remember the last time you heard it explained to the public in one of these outlets how members of unions are better off?

How widespread is the anti-labor effort? Here’s a quick, admittedly unscientific check. On Google today there are 54,800 websites that refer to “union thugs,” 154,000 websites that refer to “union bosses” and 200,000 that refer to “big labor.” Please click through and look not only at the ridiculous things being written, but also at who is writing them.

The first page of Google “results for “union bosses” lists anti-union pages from Big Government, The Center for Union Facts , The Washington Times, Human Events, Redstate, Townhall, The National Right to Work Legal Defense Foundation and the book “Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics” by Fox News analyst Linda Chavez and Danial Gray of the National Right to Work Committee.

The Center for Union Facts, The National Right to Work Legal Defense Foundation and the National Right to Work Committee are anti-union sites funded by corporations and right-wing foundations. According to a report in SourceWatch, The National Right to Work Committee and National Right to Work Legal Defense and Education Foundation even share facilities and employees. Big Government, Human Events, Townhall, Redstate, Fox News and the Washington Times are conservative movement outlets that are part of the coordinated Right Wing Noise Machine, or echo chamber, in which a number of outlets appear to be different entities but work as part of a single movement with a shared goal. (P.S. Big Government is the site where the doctored ACORN videos and doctored video of Shirley Sherrod were promoted.)

Admittedly unscientific, but interesting nonetheless. There's a lot of anti-union money floating around out there.

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-- Posted by Dave Johnson at 10:09 PM PST on September 01, 2010.

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SS On The Table, But BS Not?

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.

The President has a commission looking at ways to reduce the budget deficits which were caused by tax cuts for the rich and military spending increases. Social Security – which has no legal authority to borrow money, so it can't contribute to deficits – is on the table for cuts, at least as far as We, the People are allowed to know. (The commission meets in secret.) That's BS.

Another reason we know SS is on the table is that almost all of the members of the commission have spoken in the past of their inclination to cut or privatize the program. That’s BS.

Republican members of the commission have said in advance that taxes will not be on the table. That’s BS.

In fact, conservatives of both parties are arguing to extend the expiring Bush tax cuts for the rich! That's BS.

The country spends up to $1.2 trillion a year on wasteful, bloated military and related programs, more than all the rest of the countries on earth combined, but the commission isn't talking about cutting that down to, say, only three times our nearest possible competitor? That's BS.

Social Security being involved with this commission at all is BS. If they want to cut something they should cut the BS.

If you want to fix the deficits, fix the problems that caused the deficits, not things that can't. Speaker Pelosi said in July that talking about SS and the deficits are like apples and oranges. With this in mind Rep. Raul Grijalva says Congress should preempt this, and demand that Social Security be left alone.

Ask the candidates in your district and state to sign the Hands Off Social Security pledge, and check the list to see who else is on board.

Also, please visit Strengthen Social Security where you can sign up for information, and to follow them on Twitter and/or Facebook.

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-- Posted by Dave Johnson at 9:13 AM PST on August 31, 2010.

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America Is Strong When Our Unions Are Strong

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture as part of the Making It In America project. I am a Fellow with CAF.

America was formed as a government of, by and for We, the People. It says so right in the first words of our Constitution. To get that Constitution we rebelled against the King and England's aristocracy and their corporations, with their concentrated wealth and power. And we continued that fight and over time we extended our system of one-person-one-vote, adding women and minorities to that equation.

The fight has gone back and forth. When our democratic government works, it pushes for increasing the protections and benefits of a strong economy for We, the People. This has included, for example, the mandated 40-hour workweek and minimum wages to fight exploitation, both pushed by labor. But at other times our government was "captured" by the power of concentrated wealth and working people are not well-represented. Even then we're still not necessarily each on our own. During those times we have depended on labor unions to push back against that power of concentrated wealth. Working people can organize into labor unions to bargain for higher wages and better treatment than workers could obtain individually.

What difference can unions make? In 1945 labor unions represented about 1/3 of all workers. When American unions were strong working people got the minimum wage, the 40-hour week, weekends off, paid vacations, health insurance, pensions, dignity and respect. This was when America built the middle class that everyone has been taking for granted since. Even the wealthy benefited greatly over the long run as more consumers with more money to spend lifted the whole economy.

But what has happened to us since the Reagan Revolution, when concentrated power of the big corporations weakened America's unions? Since the days of FDR membership in unions has fallen, but in 1980 unions still represented 24% of American workers. The Reagan administration famously launched an all-out assault on organized labor, resulting in membership falling to 16.4% by 1989. And the trend continued: by 1998 union membership fell to 13.9 percent. By 2009 that had decreased to 12.3%, but only 7.6% in the private sector. And here are the results:

This is a chart of working people's share of the benefits from our economy. Note the brief return to normal under Clinton, erased by Bush II. But the assault on working people has recently been bipartisan. Clinton pushed to pass the Bush I-negotiated NAFTA treaty which hammered the bargaining position of workers, while Bush II consolidated the practice of "outsourcing" labor competition from non-democratic countries where workers didn't have rights or protections.

As we all know, since the Reagan Revolution weakened the negotiating power of working people, wealth and income have concentrated at the top, our country's debt has massively increased, household debt as well, the country is crumbling and everyone except the wealthy few and big corporations is generally worse off.

Unions still make a difference. According to the Bureau of Labor Statistics, "In 2009, among full-time wage and salary workers, union members had median usual weekly earnings of $908, while those who were not represented by unions had median weekly earnings of $710." Union members also often have paid vacation, paid sick leave, health insurance and other benefits that non-union workers do not. The difference is dramatic. In March 2009, 78 percent of union workers were covered by health insurance through their jobs, compared with only 51 percent of nonunion workers. Seventy-seven percent of union workers participate in defined-benefit pension plans, compared with 20 percent of nonunion workers.

When you hear someone complain about unions and complain that people in unions are paid better than the rest of us, let them know that they are reaching the wrongest conclusion. They shouldn't resent union members and complain about their pay, they should join a union and support unions, so they they and everyone else can come out ahead.

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-- Posted by Dave Johnson at 5:40 PM PST on August 30, 2010.

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