politics

A Defense of Public Sector Unionism - Part the First

Note: this is a cross-post from The Realignment Project.

 

Introduction:

There is something strange about the Democratic Party’s love of attacking parts of its own coalition. Every political party has divisions inside it, but disagreements between factions and interest groups are usually solved through negotiation, power-sharing, and the like. The Democratic Party is highly unusual in the level of existential opposition it’s willing to engage in – the infamous “Sister Soljah” moment, the bitterness of the Rainbow Coalition vs. New Democrat conflict that arguably lasted well into 2008, and so on.

However, there’s nothing quite as strange as the loathing of certain parts of the Democratic Party for the very existence of public sector unions.

Creating State Level Jobs Programs: A Jobs Insurance Supplement

Note: this is a cross-post from The Realignment Project.

Introduction:

Even under the relatively optimistic economic forecast included in the 2011 Federal Budget, unemployment will remain at the 9.8% rate through the end of this year, dropping to 8.9% in 2011 and 7.9% in 2012.  In other words, after four years since the first stimulus, unemployment will remain at recessionary levels. To be fair, the passage of a jobs bill – and the promised efforts to pass further stimulative elements (aid to states, highway money, public works, etc.) – lends some slight hope that this catastrophe might be averted.

However, as we’ve seen with the jobs bill, it’s incredibly hard and slow to get even the smallest elements of a jobs bill through Congress; this makes it highly unlikely that sufficient actions will be taken to bring down the unemployment. However, I do think that it is possible to push through more aggressive jobs measures at the state level in heavily Democratic states that aren’t hamstrung by the Senate’s rules and the Blue Dog Caucus. As I’ve discussed in my 50-State Keynesianism and Job Insurance series, I believe that it’s possible to reform state governments to be successful anti-recession institutions, complementing Congressional action.

Today, I’ll take California and New York as two heavily Democratic states that are also large enough to have a significant impact on the national economy.

New Economic Inequality Data: Surprising and Frightening

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The newest economic inequality numbers, which ran counter to the expectations of almost all experts, are frightening. Yesterday, the Associated Press released an article titled, US income gap widens as poor take hit in recession. The opening paragraph of the article, based on recent census data, reads:

The recession has hit middle-income and poor families hardest, widening the economic gap between the richest and poorest Americans as rippling job layoffs ravaged household budgets.

Give me my monument

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I guess thou holy elected officials are getting a bit testy. They aren't accustomed to not getting their monuments on Mt Olympus. Apparently Maxine wants a new building named after her but they just won't give up the money.

How the heck are these people ever elected and even worse, re-elected.

We are so screwed! They don't care because it isn't their money and when more is needed they either print it or tax us.

" A plan by House Appropriations Chairman David Obey (D-Wis.) to ban “monuments to me” in this year’s appropriations bills has been sharply criticized behind closed doors by a senior Democrat who wants to direct $1 million to an employment center in her district bearing her name.

The Populist Pub is Open. Let's Talk Worst Case Scenarios!

 

Petit Julien welcomes you back to the Populist Pub.  

Nearly 18 months into this recession, skepticism is growing about what "recovery" might look like. We hear talk of "green shoots" in an economy that is being remade into another bubble economy, this time based on "government finance". Is it really "stimulating" to the real economy to inject massive amounts of liquidity into the financial system? This unprecedented intervention includes Federal Reserve Credit, Treasury borrowings, agency debt, mortgage-backed securities issued by GSEs, as well as increased involvement of the FDIC. The latest estimates of the size of this bubble is around $14 Trillion which, amazingly, dwarfs the mortgage finance bubble it replaces. The question many analysts ask is whether the FED will be able to withdraw liquidity from the system in the proper amounts and at the right time in order to avert the inevitable inflation when it begins. Ironically, the FED will then find itself in the familiar position of being trapped by the risk of bursting another historic bubble!

The Populist Pub is now open.

 

Petit Julien welcomes you back to the Populist Pub.  

Earlier this week, we passed a milestone of sorts. The Obama administration marked its first 100 days in office. In 1933, FDR, facing a full blown depression, made numerous and transformative changes in his first 100 days. Since then, the accomplishments of the first 100 days of every new administration have been symbolically compared. That is, until this year.

On Thursday, Day #101 of the Obama administration, Steve Lendman, author, blogger, radio co-host and activist, who lives in Chicago, wrote an excellent article contrasting the first 100 days of FDR to BHO. This was effectively a follow up to a scathing article he wrote two weeks earlier. In that article, published on April 18th, Steve Lendman was highly critical of the Obama economic team especially. It was provocatively titled Barack Obama: Crime Boss.

The Populist Pub is Now Open

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Petit Julien welcomes you back to the Populist Pub.  

As a nation, we are groping for some sense of hope that we are emerging from the economic morass. The ranks of the unemployed continue to swell and millions of working Americans and retirees worry that the economic tsunami may engulf them next. The government has enacted a dizzying array of bailouts and assistance plans aimed at stabilizing the banking industry, thereby clearing a path to recovery in the real economy.

There is plenty of criticism for the government's actions to date, much of which is centered on understanding what brought on the crisis in the first place. Many critics attribute the 1999 repeal of the Glass-Steagall Act of 1933 and the 2000 enactment of the Commodities Futures Modernization Act as the impetus for the wreckless financial gambling of the last 8 years. For sure, this is not wrong and various measures of reform are now working their way through the Congressional process.

However, in an excellent article published in the April edition of Harper's Magazine, Thomas Geoghegan argues that we have not focused enough on the big deregulation that precedes all other deregulation. For him it was the day that America changed. His essay is titled: Infinite Debt; How Unlimited Interest Rates Destroyed The Economy.

The Populist Pub is Now Open

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Petit Julien welcomes you to the first gathering at the Populist Pub.   As an introduction, let me refer to this comment I made the other night. You can scroll up and down in that thread to get more context.

One of the things I like most about Naked Capitalism is the daily links that Yves provides. They are wide ranging, only sometimes graphical or analytical, but always apropros to the bigger picture.

So I was thinking if there is a way of doing something similar here at EP. Provide links to other reports, essays, analyses without paraphrasing and just invite general discussion or further original blog posts.

Pointing Fingers - Can It Lead to an Implosion?

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A hard hitting Obama campaign ad against John McCain points out he is surrounded by corporate lobbyists writing policies he would implement as a Government administration.

Mud comment

Obama's lobbyists? Well it's a little more indirect but it's really a matter of wording, the same people are giving the money.
http://www.whitehouseforsale.org

Circular firing squad? Hope of all hopes.

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