Creating Jobs: which party does better

The Republicans will campaign on the idea that lowing taxes on the wealthy (I think Romney wants to keep the Bush tax cuts and even cut more) creates jobs because the money the wealthy do not pay in taxes goes to create jobs.  Fay Paxton has looked at the history of job creation and posted an analysis on Winning Progressive.   Her conclusion:  Democrats create more jobs.  These charts describe private sector job creation.

Yes, the first months of the Obama Administration were rough, but as the chart shows, we started bleeding jobs under George W. Bush.

Ronald Reagan wins among Republicans, but he wasn’t afraid of raising taxes.

So what about federal public sector jobs?  The Republicans always claim that the Democrats are the party of big government.  Is this true?  Paxton says

Republicans talk about being conservatives who believe in small government and reducing the federal workforce. The numbers don’t bear out their claims.  In a press conference, House Speaker John Boehner said, “In the last two years, under President Obama, the federal government has added 200,000 new federal jobs.”  The Republicans even advanced legislation calling for a reduction of 200,000 federal employees.

Here’s the truth:

According to the Office of Personnel Management, it is true that the federal workforce increased by 237,000 employees. What Boehner does not tell…150,000 of the employees added to the roles were uniformed military personnel, no doubt to accommodate the wars in Iraq and Afghanistan. The 237,000 figure also includes temporary Census workers.

Despite claims of huge government expansion, historically, Democratic presidents reduced the size of the federal government workforce. The federal employment numbers, according to the U.S. Office of Personnel Management, the department charged with tracking the number of employees, the data shows the following:

Paxton summarizes

If we combine the totals for all federal employees, including the military:
Reagan began office with a total of 4,982,000 employees and ended his term with 5,292,000 employees. While President Obama took office with a federal employee roster of 4,430,000 employees (fewer than Reagan). At the end of 2010 President Obama’s federal workforce numbered 4,443,000; that’s 849,000 fewer employees than Reagan, the advocate of small government! Add to this the fact that President Reagan governed during peacetime, while President Obama inherited two wars.

So the figures don’t lie:  Democrats do a much better at creating new private sector jobs and reducing the size of the federal government.

 

Ryan’s Budget and the 2012 Election

 Dan Wasserman sums up the Ryan Budget.

04.04RYANBUDGET.gif

President Obama called the Ryan Budget “Social Darwinism” quoting that wise Republican, Newt Gingrich.  Mitt Romney called it “marvelous”.  Paul Krugman calls it “Pink Slime Economics”

Here is Krugman

And when I say fraudulent, I mean just that. The trouble with the budget devised by Paul Ryan, the chairman of the House Budget Committee, isn’t just its almost inconceivably cruel priorities, the way it slashes taxes for corporations and the rich while drastically cutting food and medical aid to the needy. Even aside from all that, the Ryan budget purports to reduce the deficit — but the alleged deficit reduction depends on the completely unsupported assertion that trillions of dollars in revenue can be found by closing tax loopholes.

And we’re talking about a lot of loophole-closing. As Howard Gleckman of the nonpartisan Tax Policy Center points out, to make his numbers work Mr. Ryan would, by 2022, have to close enough loopholes to yield an extra $700 billion in revenue every year. That’s a lot of money, even in an economy as big as ours. So which specific loopholes has Mr. Ryan, who issued a 98-page manifesto on behalf of his budget, said he would close?

None. Not one. He has, however, categorically ruled out any move to close the major loophole that benefits the rich, namely the ultra-low tax rates on income from capital. (That’s the loophole that lets Mitt Romney pay only 14 percent of his income in taxes, a lower tax rate than that faced by many middle-class families.)

This budget fight and the election to come are about what we want the country to be.  The Republicans have that much right.  Will we become a country with the rich hiding in gated communities and getting richer or will we a a country where everyone has a chance to succeed, where the less fortunate get help, and where there is a robust middle class?  Democracies thrive in countries with an educated middle class.  Look at the driving forces behind the Arab Spring.  The choices this election will be clear. 

The budget fight is also about whether or not a deficit is important right now.  Yes, we can’t continue to grow the deficit indefinitely, but it seems to this non-economist, that the way to deal with the deficit is not through draconian cuts to the domestic budget, but spend on things that result in jobs.  When people work they pay taxes and the deficit can begin to come down.  But cutting food stamps, unemployment insurance, job retaining programs, aid to education, are all key to growing jobs or helping those who can’t find them.

Andrew Rosenthal put it better in today’s New York Times.

He ticked off some of the budget’s most near-sighted assaults: financial aid cuts to nearly 10 million college students; 1,600 fewer medical grants; 4,000 fewer scientific research grants. Starting in 2014, it would cut around 200,000 children from the Head Start program and 2 million mothers and their young children from a food assistance program. “We wouldn’t have the capacity to enforce the laws that protect the air we breathe, the water we drink or the food that we eat,” he said.

Medicaid would be gutted, Medicare would be turned into a voucher program – but the Republicans would still cut taxes by $4.6 trillion over the next decade. The cuts, as usual, would mostly benefit the wealthy.

Mr. Obama noted that the stated purpose of the Republican budget is to reduce the federal budget deficit, but he called it a Trojan horse and “thinly veiled social Darwinism.” The real purpose is to cripple government. And he said, because it guts “the very things we need to grow an economy that’s built to last – education and training, research and development, our infrastructure – it is a prescription for decline.”

The Republican response to Mr. Obama – that the nation is in a debt crisis and the president doesn’t get it – just made his point for him. We don’t have a debt crisis. We have a medium- to long-term budget problem, driven largely by rising health costs combined with an aging population. Health care reform is an honest attempt to deal with that. Letting the Bush tax cuts expire, starting with the high-end ones, would be an honest attempt to deal with that. Then there’s our lack of jobs, lack of income growth, diminishing prospects and dwindling opportunities.

And we shouldn’t forget that George W. Bush told us we didn’t need to raise taxes to pay for the war in Iraq because it would pay for itself through oil revenue.  He cut taxes for the 1% instead and created a deficit.  This probably wouldn’t have been so catastrophic except that the economy collapsed in 2008.  Here is a link to a nice chart.

So the Ryan Budget will be at the heart of the election this fall – especially if Paul Ryan is Romney’s VP.  It will be interesting.

 

Seamus and Etch a Sketch

Can’t resist posting this.  There is an Etch a Sketch with Seamus on the roof of Romney’s car.

 

This was done by Andrew Kaczynski.  It sums up Romney’s problems in one nice picture.  Seamus on the roof going to Canada.  Somehow I don’t think that Mitt can erase this no matter how hard he tries to shake up his Etch a Sketch

And you also have this on the Dogs Against Romney blog.

These are just going to multipy to fit any situation.  I wondered for a while why Romney didn’t fire Eric Fehrnstrom but then I realized that this would go away whether he continues to work on the campaign or not.  Wonder if Eric thinks Scott Brown is also like an Etch a Sketch?

Polls, Polls, Polls

 

Don’t know about you but sometimes I get dizzy reading all the polls.  There are so many variables:  how the question was asked, when it was asked, how the sample was selected, etc. etc.  So this little piece from the Daily Kos Morning Digest from March 20 was, I thought worth passing on.

NJ-Sen (PDF): Farleigh Dickinson University has Dem Sen. Bob Menendez leading state Sen. Joe Kyrillos 43-33 in their newest poll, little changed from the 43-31 they saw in January. FDU also tested Menendez against “someone else,” who utterly upends the race and leads 37-30. I have to give props to FDU here, because they actually wrote a very funny press release about this possible contender:

According to poll director Peter Woolley, “Most voters think someone else is a nearly ideal candidate. They say someone else is refreshing, straightforward, honest and represents the true interests of ordinary people.”
Woolley continued, “Someone else is almost always more popular. Someone else is a better dresser. Someone else gets the hot stock tips. Someone else gets promotions and pay raises too. Someone else even wins the lottery.”
Someone else does have a downside. “Someone else seems to have a troubled domestic life,” opined Woolley. “Someone else always leaves dishes in the sink, lets the dog get out, and chips the paint on your brand new car. Someone else is also reputed to have broken up more than a few marriages.”
The poll did not ask about anyone else. “Asking about anyone else would be ridiculous,” said the poll director. “Anyone else may not even be eligible to run.”

Where does David Nir find this stuff?!

So here is some hopeful news, also from the Daily Kos of March 20.

GENERAL ELECTION TRIAL HEATS:

NATIONAL (Rasmussen Tracking):Obama d. Romney (46-45); Obama d. Santorum (48-43) 

NEVADA (Rasmussen): Obama d. Romney (50-44); Obama d. Santorum (52-36)

VIRGINIA (Quinnipiac): Obama d. Romney (50-42); Obama d. Santorum (49-40); Obama d. Paul (49-39); Obama d. Gingrich (54-35)

Can we believe those Nevada and Virginia numbers?  Guess we will have to wait until November to find out.

 

So what has Obama accomplished?

The group Winning Progressive has a posted a list of the President’s achievements the last 3 years.  

This picture and the text list only a few accomplishments but given the hostility of almost half of Congress and the American people we Democrats, progressives, liberals what ever we label ourselves can be proud.   One needs to click on the link above to get a more complete list.

Those of us who support the President and support his re-election need to ask ourselves why a vast majority of people don’t think he has done anything.  Paul Glastris in  Washington Monthly points out in his long article “The Incomplete Greatness of Barack Obama”.

In mid-January, pollsters for the Washington Post and ABC News asked a representative sampling of Americans the following question: “Obama has been president for about three years. Would you say he has accomplished a great deal during that time, a good amount, not very much, or little or nothing?

When the poll’s results were released on January 18, even the most seasoned White House staffers, who know the president faces a tough battle for reelection, must have spit up their coffee: more than half the respondents—52 percent—said the president has accomplished “not very much” or “little or nothing.”

It is often said that there are no right or wrong answers in opinion polling, but in this case, there is an empirically right answer—one chosen by only 12 percent of the poll’s respondents. The answer is that Obama has accomplished “a great deal.”

Paul Glastris continues what the President has done and to try to explain why people don’t think he has done much.

In short, when judging Obama’s record so far, conservatives measure him against their fears, liberals against their hopes, and the rest of us against our pocketbooks. But if you measure Obama against other presidents—arguably the more relevant yardstick—a couple of things come to light. Speaking again in terms of sheer tonnage, Obama has gotten more done than any president since LBJ. But the effects of some of those achievements have yet to be felt by most Americans, often by design. Here, too, Obama is in good historical company.

The greatest achievements of some of our most admired presidents were often unrecognized during their years in office, and in many cases could only be appreciated with the passing of time. When FDR created Social Security in 1935, the program offered meager benefits that were delayed for years, excluded domestic workers and other heavily black professions (a necessary compromise to win southern votes), and was widely panned by liberals as a watered-down sellout. Only in subsequent decades, as benefits were raised and expanded, did Social Security become the country’s most beloved government program. Roosevelt’s first proposal for a GI Bill for returning World War II veterans was also relatively stingy, and while its benefits grew as it moved through Congress, its aim remained focused on keeping returning veterans from flooding the labor market. Only later was it apparent that the program was fueling the growth of America’s first mass middle class. When Harry Truman took office at the dawn of the Cold War, he chose the policy of containment over a more aggressive “rollback” of communism, and then he built the institutions to carry it out. He left office with a 32 percent public approval rating. Only decades later would it become clear that he made the right choice.

President Obama’s weak point is definitely the economy and the stimulus.  Was the stimulus too little to have a huge impact as Paul Krugman would argue or was it a total waste as many conservatives including those currently running for the Republican nomination would have us think?  The facts are that the bailout of the banks and of the auto industry did work and in the end it didn’t cost the taxpayers since money was paid back with interest.  Obama supporters need to hope that economic numbers continue to improve.

Glastris continues

I had conversations recently with six presidential scholars. Three of them—Robert Dallek, Matthew Dallek, and Alan Lichtman—said that, based on what Obama has gotten done in his first term, he has a good shot at ranking in or just below the top ten presidents of history, but with the proviso that he almost certainly needs to get reelected to secure that position. The other three—Alan Brinkley, David Greenberg, and Allen Guelzo—took a more jaundiced view. While conceding that Obama has put a lot of points on the board in terms of legislation, they felt that the highly compromised nature of that legislation, among other things, reflects qualities of leadership—a lack of experience, acumen, and forcefulness—that will keep him from ranking with the great presidents, and will more likely place him somewhere in the middle of the pack, presuming he even gets reelected.

These last three scholars’ views mesh with the broader feeling among Obama’s critics, especially on the liberal side, that Obama is fatally overcautious. What’s notable about such critiques is that they essentially rest on arguments that are counterfactual—that a savvier, more experienced, more energetic president could have gotten more done. Certainly that’s plausible, if unprovable. But it is equally plausible, as Ezra Klein has argued, that what has constrained Obama is not a lack of boldness but a lack of political space. With Republicans unified in opposition and willing to abuse the filibuster such that to pass any legislation has required sixty Senate votes that Obama has seldom had, it is unrealistic to think he or anyone could have done a whole lot better.

I would argue that part of that lack of political space is due to race.  I know that some who read this blog may feel that I harp on race too much, but it is the, so to speak, elephant in the room.  Just look at todays Doonesbury.

Doonesbury

Gladris ends with this

One of the most important tasks a president must master—and Obama hasn’t—is speaking up for his own record. This has been especially challenging for him because of the still-widespread economic suffering across the country and the too-soon-to-tell quality of his biggest accomplishments. And again, his even temperament hasn’t helped. He has seemed to want his achievements to speak for themselves. Who wouldn’t? But the presidency doesn’t work that way. A president has to remind the public every day of what he’s already done, why he’s done it, and how those achievements fit into a broader plan that will help them in the future.

With his State of the Union and some subsequent speeches, he has only begun this task. And while it’s very late in the day, the election is still eight months away. The irony is that, while Barack Obama has achieved a tremendous amount in his first term, the only way to secure that record of achievement in the eyes of history is to win a second. And to do that, he first has to convince the American voters that he in fact has a record of achievement.

So if the prospect of one of the Republican candidates becoming President frightens you, you need to help the President in spreading the word about what he has done in three years in the face of immense opposition.

We are not a post racial society yet

Anyone who thought that the election of President Obama signaled we were entering a post racial world only had to look at the news stories this past week featuring Judge Richard Cebull and Arizona Sheriff Joe Arpaio.

Judge Cebull, who has apologized to the President, thought he was circulating a joke privately to some friends.  I guess one of them was grossed out (as everyone should be) and outed the Judge.  Politico.com reported

The chief federal judge of Montana has apologized to President Barack Obama in a letter after admitting to sending an email containing a racist joke about the president that made a reference to a dog.

“I sincerely and profusely apologize to you and your family for the email I forwarded. I accept full responsibility; I have no one to blame but myself,” Chief U.S. District Judge Richard Cebull wrote in a letter dated March 1. “I can assure you that such action on my part will never happen again.”

He added, “Honestly, I don’t know what else I can do. Please forgive me and, again, my most sincere apology.”

Cebull landed in hot water this week when it was revealed that he had forwarded a racially charged joke about Obama to six others from his court email account.

“A little boy said to his mother; ‘Mommy, how come I’m black and you’re white?’” the joke in the email said. “His mother replied, ‘Don’t even go there Barack! From what I can remember about that party, you’re lucky you don’t bark!’”

I don’t think an apology is sufficient.  What else can you do, Judge Cebull?  You can resign immediately.  The Ninth Circuit is taking steps to investigate, but even if they discipline him, how could a person who is not white feel confident they will get a fair trail if they come before him.  This man is not very smart what with using his court email account and thinking anything is private.

And then the crazy Sheriff from Arizona made a little news.  The conservative blog Fellowship of the Minds complained that it wasn’t covered enough, even by the conservative media. The story was picked up by the Telegraph in London this morning.

A tough-talking Arizona sheriff, already embroiled in a Justice Department bias investigation and other woes, waded deeper into controversy on Thursday with an attention-grabbing assertion that a probe by his office found President Barack Obama’s birth certificate was a forgery.

Most Republican critics of Obama have given up pursuing such widely discredited “birther” allegations. But the investigation by Maricopa County Sheriff Joe Arpaio, carried out by what he described as five-member volunteer “posse,” was prompted by a request last August from a group of conservative Tea Party activists in the Phoenix valley.

The White House has had to deny repeated claims that Obama was not born in the United States. In April, 2011, Obama released a longer version of his birth certificate to try to put to rest the speculation within some Republican circles that he was not born in the United States.

“A 6-month long investigation conducted by my cold case posse has led me to believe there is probably cause to believe that President Barack Obama’s long form birth certificate … is a computer-generated fraud,” Maricopa County Sheriff Joe Arpaio told a news conference.

I think the Sheriff is forgetting about the birth announcement that appeared in the Honolulu papers when the President was born.  I would think that would be hard to forge.  What the Sheriff and the other birthers allege would require a wide-ranging conspiracy with a lot of people keeping quiet.  As with the Judge Cebull email, someone would have talked by now.

A federal judge circulating a racist joke and the birther theory that won’t die are two examples that show we are still living an a racist society.

Mitt’s Best Friend

is Rick Santorum!  Both Roger Simon writing for Politico.com and David Firestone writing in the New York Times Loyal Opposition column strike similar chords today. 

Simon writes in “Mr. Bumble vs. Mr. Scary”

Is it possible to stumble and bumble your way to a presidential nomination?

Certainly. And Mitt Romney is determined to prove it.

Still, Romney manages to screw up.

In December, at one of the innumerable Republican debates, Rick Perry accused Romney of having changed his position on something or other. Perry had about as much chance of getting the Republican nomination as getting Texas to secede from the Union and naming him king, but he got Romney’s goat nonetheless.

Romney angrily stuck out his hand and said, “Rick, I’ll tell you what, 10,000 bucks? $10,000 bet?”

Grand, Mitt. Just grand. Remind everybody that $10,000 is chump change to you.

And who can forget Romney telling us that “corporations are people” or that he made “not very much” money in speaking fees in a year in which he made $374,000 in speaking fees. He wasn’t lying. It’s just that $374,000 wasn’t very much to him.

POLITICO’s Reid J. Epstein has assembled a delicious list of all these gaffes that is worth wandering through.

What it shows is a man totally sincere in his isolation from average Americans. Except for his blue jeans — which one comic says that he wears over his suit pants — Romney doesn’t pretend to be average. He is a highly successful businessman, and he is proud of it.

Firestone put it this way in the New York Times

Mr. Romney doesn’t bother to play in the deep end. His speeches now are simply strings of slogans, spliced together at random, criticizing President Obama or his rivals. He never conveys the sense of having really thought hard about an issue and reaching a deliberate decision.

Now to Santorum.  Simon writes

But even with all this, Romney has one great thing going for him: Rick Santorum.

Rick Santorum doesn’t flub. He speaks from his deeply held convictions. Some of which are very scary.

Speaking in Troy, Mich., on Saturday, Santorum said, “President Obama once said he wants everybody in America to go to college. What a snob.”

Had Santorum gone on to say that not everyone in America wants to go to college and that there is nothing shameful about manual labor, he may have had a point.

But that’s not all Santorum was saying. He added that he doesn’t want kids to go to college because if they do they are going to be “taught by some liberal college professor trying to indoctrinate them.”

I am not entirely sure what Santorum was venting about or what Satanic ritual he was made to undergo in college — paddling? beer pong? — but it obviously affected him deeply.

So much so that he left college convinced that the First Amendment was not only hooey, but stomach-turning. Literally.

Santorum says that John F. Kennedy’s famous 1960 speech stating there should be an “absolute separation” of church and state in America “makes me throw up and it should make every American.”

Santorum went on: “I don’t believe in an America where the separation of church and state is absolute. The idea that the church can have no influence or no involvement in the operation of the state is absolutely antithetical to the objectives and vision of our country.”

The Republicans are finally realizing they are in trouble.  I think that Mitt Romney will get his dream and be the nominee mostly because his best friend Rick is so scary, but he really has to step up is game if he is going to defeat President Obama.  I cringe at a debate between them.

Tonight we have Michigan and Arizona. It should be interesting.

 

Freedom of Religion and Freedom from Religion

The first Amendment to the Constitution reads, “Congress shall make no law respecting an establishment of religion….”  I don’t think that Rick Santorum has read the Constitution recently if ever.  Last night on Hardball  Chris Matthews tried to  referee a shouting match between Michael Steele, the former chair of the Republican Party who tried to defend Santorum’s introduction of his religious beliefs into governing policy and David Corn who tried without success to explain why the introduction of religion was wrong.  All three of them missed the point.  The point is that we can have no established religion in this country and while those who govern as President can have personal religious beliefs, they cannot impose them on the country.

Karen Santorum says husband’s presidential run is ‘God’s will’

Kathleen Parker ended her recent column titled “The Trials of Saint Santorum” this way

Everything stems from his allegiance to the Catholic Church’s teachings that every human life has equal value and dignity. The church’s objection to birth control is based on concerns that sex without consequences would lead to men reducing women “to being a mere instrument for the satisfaction of (their) own desires,” as well as abuse of power by public authorities and a false sense of autonomy.

Within that framework, everything Santorum says and does makes sense, even if one doesn’t agree. When he says that he doesn’t think the government should fund prenatal testing because it leads to abortion, this is emotional Santorum, father of a disabled child and another who died hours after a premature birth. In both instances, many doctors would have recommended abortion, but Santorum believes that those lives, no matter how challenging, have intrinsic value.

Though Santorum’s views are certainly controversial, his biggest problem isn’t that he is out of step with mainstream America. His biggest problem is that he lacks prudence in picking his battles and his words. The American people are loath to elect a preacher or a prophet to lead them out of the desert of unemployment. And they are justified in worrying how such imprudence might translate in areas of far graver concern than whether Santorum doesn’t personally practice birth control.

Parker’s statement that “the American people are loath to elect a preacher of a prophet” is exactly right.  And he is definitely out of step with mainstream America.  Maureen Dowd was even blunter opening her column with

Rick Santorum has been called a latter-day Savonarola.

That’s far too grand. He’s more like a small-town mullah.

Santorum is not merely engaged in a culture war, but “a spiritual war,” as he called it four years ago. “The Father of Lies has his sights on what you would think the Father of Lies would have his sights on: a good, decent, powerful, influential country — the United States of America,” he told students at Ave Maria University in Florida. He added that mainline Protestantism in this country “is in shambles. It is gone from the world of Christianity as I see it.”

Satan strikes, a Catholic exorcist told me, when there are “soul wounds.” Santorum, who is considered “too Catholic” even by my über-Catholic brothers, clearly believes that America’s soul wounds include men and women having sex for reasons other than procreation, people involved in same-sex relationships, women using contraception or having prenatal testing, environmentalists who elevate “the Earth above man,” women working outside the home, “anachronistic” public schools, Mormonism (which he said is considered “a dangerous cult” by some Christians), and President Obama (whom he obliquely and oddly compared to Hitler and accused of having “some phony theology”).

Rick Santorum wants us to be a Christian country and beyond that a fundamentalist Catholic one.  How different this is from President John F. Kennedy declaring that the Pope would not run the government.  Mullah Rick needs to read the Constitution. 

Rick Santorum talks to the media after Wednesday's debate. | AP Photo

It is too easy to make fun of him.  This is a dangerous man.  We need to take him seriously.

Who is really European?

I was reading Paul Krugman’s column in the New York Times this morning and I started thinking.  The Republicans accuse President Obama of trying to make us more like European Socialists, but in reality it is they who want to make us European.  Think about it a minute.

Krugman writes

Last week the European Commission confirmed what everyone suspected: the economies it surveys are shrinking, not growing. It’s not an official recession yet, but the only real question is how deep the downturn will be.

And this downturn is hitting nations that have never recovered from the last recession. For all America’s troubles, its gross domestic product has finally surpassed its pre-crisis peak; Europe’s has not. And some nations are suffering Great Depression-level pain: Greece and Ireland have had double-digit declines in output, Spain has 23 percent unemployment, Britain’s slump has now gone on longer than its slump in the 1930s.

Worse yet, European leaders — and quite a few influential players here — are still wedded to the economic doctrine responsible for this disaster.

What is that doctrine?  Basically you gut the retirement system, layoff workers, cut wages, and increase taxes.  Krugman puts it this way

Specifically, in early 2010 austerity economics — the insistence that governments should slash spending even in the face of high unemployment — became all the rage in European capitals. The doctrine asserted that the direct negative effects of spending cuts on employment would be offset by changes in “confidence,” that savage spending cuts would lead to a surge in consumer and business spending, while nations failing to make such cuts would see capital flight and soaring interest rates. If this sounds to you like something Herbert Hoover might have said, you’re right: It does and he did.

President Herbert Hoover.

Image via Wikipedia

 

Thomas Wright in a column published in the Financial Times brings in the Republicans.  He points out the while Mitt Romney and Newt Gingrich want to deal immediately with the debt crisis – like the Europeans – Democrats and, in particular the President, believe that the debt is a long term issue and not a near term crisis. 

I’m certainly not an expert, but it does appear that the European Hooverism is being largely driven by Germany.  It will be interesting to see how that works out for them in the long run.  What happens when the Greek economy continues to sink and they decide to pull out of the Euro? 

Back to Krugman again.

Meanwhile, countries that didn’t jump on the austerity train — most notably, Japan and the United States — continue to have very low borrowing costs, defying the dire predictions of fiscal hawks.

So what will it take to convince the Pain Caucus, the people on both sides of the Atlantic who insist that we can cut our way to prosperity, that they are wrong?

After all, the usual suspects were quick to pronounce the idea of fiscal stimulus dead for all time after President Obama’s efforts failed to produce a quick fall in unemployment — even though many economists warned in advance that the stimulus was too small. Yet as far as I can tell, austerity is still considered responsible and necessary despite its catastrophic failure in practice.

The big question:  Will the Congress pass the President’s new jobs bill?  Or will it stick to slash, slash, slash?  Increasing aid to local governments for police, fire, schools and programs like the Community Development Block Grant (CDBG) will prevent layoffs and enable hiring.  Take CDBG  for example.  The City of Boston uses the funds to assist human services programs like afterschool and youth recreation, to assist small businesses and nonprofits make repairs and improvements, and help low income homeowners make repairs.  There are rules about who can get assistance.  Jobs are ceated when the business or nonprofit hires staff or a contractor to make repairs and improvements.  Assistance to homeowners also creates jobs.  Many other localities use CDBG to improve roads and sidewalks.  I think everyone understand how keeping teachers, police, and firefighters employed helps local governments.  It also increases the tax base for all levels of government and will eventually help lower the debt.  Or am I being too simplistic?

Krugman ends this way

Look, I understand why influential people are reluctant to admit that policy ideas they thought reflected deep wisdom actually amounted to utter, destructive folly. But it’s time to put delusional beliefs about the virtues of austerity in a depressed economy behind us.

So it seems that it is really the Republicans who are more European with their belief in continued austerity.  They need to look around and see what is happening in Europe and decide if they – and us – really want to be like them or continue to pursue the President’s American exceptionalism.

 

 

 

Washington Makes Seven

Lots of news these days on the gay marriage front almost all of it good.  Washington State has joined Massachusetts, Vermont, New Hampshire, New York, Connecticut, and Iowa (plus Washington, D.C.) in legalizing gay marriage.  Maryland and New Jersey are moving closer and the Appeals Court upheld the California ruling on Prop 8.  And polls now show that most Americans support the equal right of gays and lesbians to marry.  The tide has turned and the wave of gay marriage is coming in quickly now.

Washington state Governor Christine Gregoire signs legislation legalizing gay marriage in the state, in Olympia, Washington February 13, 2012. REUTERS/Robert Sorbo

On the day before Valentine’s Day, Washington Governor, Christine Gregoire signed the bill legalizing gay marriage in that state.  It will take effect in 90 days.  According to the Reuters story

Gregoire, a Democrat and a Roman Catholic, signed the measure to raucous applause during a ceremony in the ornate reception room of the Olympia statehouse, declaring, “This is a very proud moment. … I’m proud of who and what we are as a state.” It was the latest victory for the U.S. gay rights movement.

Anticipating the repeal campaign that lies ahead later this year, the governor added, “I ask all Washingtonians to look into your hearts and ask yourselves – isn’t it time? … We in this state stand proud for equality.”

Democrats, who control both legislative bodies in Olympia, accounted for the lion’s share of support for the measure. The stage for swift passage was set after Gregoire, who is in her last term of office, said last month she would endorse the law.

Several prominent Washington-based companies employing tens of thousands of workers in the state have supported the bill, including Microsoft, Amazon and Starbucks.

Opponents were led by Roman Catholic bishops and other religious conservatives.

Meanwhile on the East Coast bills were advancing in Maryland and New Jersey.  Taking Maryland first, Reuters reported

A joint panel of the Maryland legislature approved on Valentines’s Day a bill to legalize same-sex marriage, adding to national momentum for gay nuptials following advances in California, New Jersey and Washington state over the last week.

Committee approval of Governor Martin O’Malley’s bill on Tuesday moves Maryland closer to becoming the eighth state to legalize gay marriage.

The House of Delegates’ Judiciary Committee and the Health and Government Operations Committee approved the measure 25-18 in a joint vote, a judiciary panel spokeswoman said. The measure is expected to go to the full House on Wednesday, she said.

Interestingly the opposition in the Maryland legislature – and in the state –  is coming from African Americans.  Rev. Al Sharpton is lobbying black ministers to support the bill.  Anyone who wants to characterize the black community as monolithic is mistaken as when the Massachusetts bill passed some of the most passionate supporters were African American legislators like Dianne Wilkerson. 

New Jersey is, unlike Washington and Maryland, facing opposition from Governor Chris Christie who believes that civil rights issues should be referendum issues.  The New York Times reported

The New Jersey State Senate voted on Monday to legalize same-sex marriage, a significant shift in support from two years ago, when a similar measure failed.

The legislation faces a vote on Thursday in the State Assembly, but even if that chamber passes the measure, as expected, Gov. Chris Christie, who favors holding a referendum on the issue, has said he will veto it.

But advocates hailed the Senate vote as a huge advance, noting that they won 10 more votes than they did two years ago. And both supporters and opponents said they were surprised by the margin: the bill needed 21 votes to succeed and passed 24 to 16.

“The margin brought the notion of an override out of fantasyland,” said Steven Goldstein, chairman of Garden State Equality, a gay rights group. “Before today, I would have said the chances of an override were one in a million. Now I’d say it’s about one in two.”

Mr. Christie, a Republican, has said the issue should be put on the ballot in November as a constitutional amendment. Some polls have found that a slight majority of New Jersey voters support same-sex marriage. Advocates note, however, that in 31 states where same-sex marriage has been put to a referendum, it has failed.

On Monday, Mr. Sweeney [Senate President] said there was “not a chance in hell” that he would support the legislation required to put the question to a ballot, which he said would mean allowing “millions of dollars to come into this state to override a civil right.”

New Jersey already has legalized civil unions.

Watch to see if Rick Santorum makes gay marriage repeal an issue if he gets the nomination.  Likewise Mitt Romney.  The Republicans are, I think, swimming against the tide.