Putting Americans Back to Work
http://thedianerehmshow.org/shows/2011-07-13/putting-americans-back-work
As Washington squabbles over the nation's debt, across the country Americans are hurting. Too many are either unemployed or under-employed. The private sector added nearly 2 million jobs in the past year. But cuts in government jobs took away from those gains. Today there are 7 million fewer jobs than at the beginning of the recession in late 2007. The U.S. unemployment rate is now at 9.2 percent. Many say deregulation and cutting taxes are essential to getting Americans working again. But others say government spending is needed - such as investment in infrastructure and technology. How tax and trade policies, government spending and advances in technology affect the U.S. job market.
Guests
Lawrence Mishel
president of the Economic Policy Institute.
Tim Fernholz
correspondent, National Journal.
James Sherk
senior policy analyst in labor economics, the Heritage Foundation.
Comments
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I am an out-of-work IT professional, 60 years of age. Two years ago I found a contracting job after looking for 12 months. It was impossible to get interviews, which I believe is directly related to my age.
I had to leave my most recent contracting position because of a California court ruling which requires companies to treat contractors as employees if they contract with the company for an extended period of time. In my case, that is 18 months. The managers for the firm did not want for me to leave, but they had no choice.
In the group that I worked, there were 3 US citizens and 10 H-1B workers from India. I had to leave after 18 months, but they are not subjected to this same restriction.
If we are concerned about putting Americans back to work, why do our laws provide tax benefits to companies which take IT jobs off-shore and allow foreign workers to continue to work uninterupted where Americans have to leave after a specific period of time and look for other employment?
Lets take the republican argument line by line.
Tax hikes on families and job creators would only make things worse." — House Speaker John Boehner.
The only hikes on families are in the form of entitlement reduction which he proposes, and there are no job creators in the form of the very rich, these people are sitting on a wind fall of cash unmatched in history and 15,000 jobs were created last month.
Second, the top 2 percent of Americans are not "small business job creators", they are the corporate mega rich.
Third, the top 2 percent are showing record cash stockpiles and record income discrepancies, so to label them as struggling business owners is a blatant lie.
tdrak wrote
"The only hikes on families are in the form of entitlement reduction which he proposes, and there are no job creators in the form of the very rich, these people are sitting on a wind fall of cash unmatched in history and 15,000 jobs were created last month."
That not what Bill Clinton believed when his 1993 budget eliminated the 1% Wealth Tax and yet one our regular posters who is of the same mind as yours (Drew Kelly) praises "BC for creating 22 million jobs more than Reagan and the the 2 Bushes put together."
Something must have gone right to give the rich a tax break.
First thing that needs to be done is install competent leadership in the White House. Second, abolish the "affordable care act".
John from Reston
The biggest problem is the income distribution is similiar to what it was during the depression. Coupled with corporations sitting on close to two trillion dollars in profits. . Taxes, investment in the country(roads,schools, other infrastructure) and stronger unions (as in the 50's) will put more Americans back to work in the public and private sector. If we go back to the low regulation,low tax policy of the Bush years depression will happen again.
The National Debt stood at $10.626 trillion the day Mr. Obama was inaugurated.
Cost yearly of the bush tax cut for wealthiest American 42 billion a year
Cost of 2 wars 170 billion annually
Medicare 325 billion annually
Social security 517 billion annually
Military 649 billion annually
Quantitative easing 600 billion
Stimulus package 550 billion
Interest on 10 trillion debt from last administration 414 billion annually
Total 4.4 trillion
Total current nation debt 14.3 trillion
The total national debt is 3.7 trillion larger than when bush took office and only a little over 1 trillion can be layed directly at Obama's feet
Quantitative easing 600 billion
Stimulus package 550 billion
health care law costs don't begin incurring until 2014 when the bill begins enactment
The teleprompter for the president. by Robert Reich
First, we'll exempt the first $20,000 of income from payroll taxes for the next two years. This will put cash directly into American's pockets and boost consumer spending. We'll make up the revenue shortfall by applying Social Security taxes to incomes over $500,000.
Second, we'll recreate the WPA and Civilian Conservation Corps -- two of the most successful job innovations of the New Deal -- and put people back to work directly. The long-term unemployed will help rebuild our roads and bridges, ports and levees, and provide needed services in our schools and hospitals. Young people who can't find jobs will reclaim and improve our national parklands, restore urban parks and public spaces, recycle products and materials, and insulate public buildings and homes.
Third, we'll enlarge the Earned Income Tax Credit so lower-income Americans have more purchasing power.
Fourth, we'll lend money to cash-strapped state and local governments so they can rehire teachers, fire fighters, police officers, and others who provide needed public services. This isn't a bailout. When the economy improves, scheduled federal outlays to these states and locales will drop by an amount necessary to recover the loans.
Fifth, we'll amend the bankruptcy laws so struggling homeowners can declare bankruptcy on their primary residence. This will give them more bargaining leverage with their lenders to reorganize their mortgage loans. Why should the owners of commercial property and second homes be allowed to include these assets in bankruptcy but not regular home owners?
Sixth, we'll extend unemployment benefits to millions of Americans who have lost part-time jobs. They'll get partial benefits proportional to the time they put in on the job.
My most important goal is restoring jobs and wages. Those who oppose me must explain why doing nothing is preferable.
tdrak wrote:
"'The National Debt stood at $10.626 trillion the day Mr. Obama was inaugurated.
Cost yearly of the bush tax cut for wealthiest American 42 billion a year
Cost of 2 wars 170 billion annually
Medicare 325 billion annually
Social security 517 billion annually
Military 649 billion annually
Quantitative easing 600 billion
Stimulus package 550 billion
Interest on 10 trillion debt from last administration 414 billion annually
Total 4.4 trillion
Total current nation debt 14.3 trillion
The total national debt is 3.7 trillion larger than when bush took office and only a little over 1 trillion can be layed directly at Obama's feet
Quantitative easing 600 billion
Stimulus package 550 billion
health care law costs don't begin incurring until 2014 when the bill begins enactmen"
But tdrak:
Obama promised us he would cut the Deficit in half by the end of his first term during the debates.
Forgot To Mention Tdrak:
The Recovery Act of 2009 was or is 865 Billion. Which has turned out to be a slush fund for unions support .
No recovery there as promised.
I am employed but I am anxious about the future. The fact that I would enjoy the opportunity to start my own business and give myself a job hinges on the lack of money. The folks that are looking for employment could start their own companies and hire people if the government would
help with their loan applications. Diane the American Spirit is alive and well, all we need is a way to make it happen. I thank you for your radio show and congratulate you on your years of honest dedication.
We need to help people start their own small businesses
Bless You
Tarzananda, is that a joke? This plan only steals money from the future to maintain bloated government spending and creates a welcoming atmosphere for fraud, typical Robert Reich garbage.
Are there even any good incentives to hire right now? Why would corps spend profit when they know if they sit on it, holding the country hostage, they will get a tax break and get to repatriate profits from over-seas for pennies on the dollar? It has been happening for thirty years now- avoid your tax liability and get a tax break. If I tried that the fines and penalties would destroy me- and I might even go to prison.
If you raised corporate tax rates, and the top tax rates, wouldn't people/corps be more willing to hire so as to avoid losing money in the form of paying taxes? If you do that won't the profit margin requirement for a new employee go down? A company can pay $1 in taxes and expect no future revenue or they can spend $1 for an employee and make some profit in the future.
I have been lucky to keep my job but many of my co-workers were let go. I have not received a raise in three years but I am required to work longer hours. About two months ago my employer (a multi-national with 20,000+ employees) had a large phone meeting. We were told that it was one of the most profitable years (April 2010- April 2011) and that we should expect a raise. It didn't happen- hard work by an employee only rewards management in the form of a larger bonus.
I suggest that people start incorporating themselves. You can, basically, write off all the expenses in your life. You may even be able to turn your home into a tax-deductible 'office.' Stash your money over-seas and when, every ten years or so, enough rich people are caught breaking the law Congress will write out a blanket pardon and let everyone repatriate their money without penalty.
Start acting like the wealthy and entitled mega-non-working-rich. Just start breaking the law- the more glaringly illegal and immoral your activity the more likely nothing will happen.
monte,
People in this country get health care- either through insurance, government programs or emergency room care. The Affordable Care Act is trying to lower costs by providing access through insurance instead of forcing the poor and sick through emergency services (which are very expensive).
I don't like the Affordable Care Act but it, at least, is trying to solve a problem in the nation. I will not allow people to die on the streets like animals- I refuse to have my nation treat people like that. I think that even you, monte, deserve dignity and access to healthcare. You might treat your countrymen and women like animals but those you oppose are protecting you and your family even as they are trying to protect themselves.
Something is better than nothing. I don't know what you think would work better (and don't care) but I guarantee doing nothing will sink this nation faster than additional tax cuts, more wars or even the resurrection of Ron Reagan.
Some data to help the discussion:
Suppy/demand basics – from Popular Economics
http://www.huffingtonpost.com/harlan-green/its-basic-economics-stupid_b_...
David Cay Johnston on tax expenditures [tax rate cuts] & tax deductions – From WNYC radio/ Brian Lehrer Show - 12 July 2011
bl071211dpod.mp3
Government Revenue ##S from 1950-2010 – note Ike still wins for consistently high receipts despite smaller population, lower CEO/Exec salaries & marginal tax rates in the90% range.
http://www.usgovernmentrevenue.com/downchart_gr.php?year=1950_2010&view=...
meangreen wrote:
"tdrak wrote
"The only hikes on families are in the form of entitlement reduction which he proposes, and there are no job creators in the form of the very rich, these people are sitting on a wind fall of cash unmatched in history and 15,000 jobs were created last month."
That not what Bill Clinton believed when his 1993 budget eliminated the 1% Wealth Tax and yet one our regular posters who is of the same mind as yours (Drew Kelly) praises "BC for creating 22 million jobs more than Reagan and the the 2 Bushes put together."
Something must have gone right to give the rich a tax break."
"
This was an era of broad economic prosperity for many reasons - policies, booming tech and housing markets- owes little to a 1% tax cut.
Economic disparity continued to increase during this period as it has for decades.
The increase in unemployment or, conversely, the lack of job creation is commonly thought to be a result of a failure of our national economic system. I believe that it is as much a result of a success of the economic system. American business has become very good at increasing production of goods and systems with less and less labor. This is a result of ever improving technology and business methods.
Business profits are increasing while employment is declining because the labor content of products and services is being engineered out. The process is a natural one in which businesses seek to maximize profitability by minimizing the costs of the factors of production. The most expensive factor of production is labor in the US so that is where R&D and innovation is focused and it is working.
Increased funding for innovation will make employment worse not better!
Please define the term small business.
Just give the power of the purse strings to Obama??
Sure why not, we've given him everything else by by-passing the duty of Congress..
Why even have a Congress??
By raising the debt ceiling, we're just going more into debt to the very same slime balls who hi-jacked our system back in 1913
Obama is simply a puppet who is carrying out the duties of these elitist who seek their One World Government.....
Mitch McConnell was bought and paid for by Goldman Sacs years ago so he also is simply a puppet for these same scum.
Left and Right is a false paradigm, they are all the same working for the same goal of One World Government.
Jeez, address the REAL issue or your just another Main Stream Media Mouthpiece...
I see many job cuts in state and local governments here in North Carolina, with resulting reductions to nonprofit agencies. The federal government can cut more spending, but the job losses will continue. How does cutting public service jobs help the economy bounce back? These unemployed workers do not pay taxes then, and become reliant on unemployment, food stamps, and social services. Without raising revenue through increasing tax rates for high income earners (and I am one of them) and closing loopholes for certain corporations, the jobs will not come back. By investing in infrastructure and education, we can have more and better jobs, as well as increased tax revenues.
Face it Americans, multi-millions of jobless keep wages low. Yet we allow and encourage immigration (Lawrence Odonnell of MSNBC). Corporations utilize guest workers to displace U.S.citizens that trained them. Diane Rehm seems mute about the 11,000,000 illegal immigrants, and millions of refugees that now exist in our country.
What would happen if say the Treasury printed $3 trillion dollars and used them to buy back part of the debt?
Why don't we invest in the US economy by bringing back the troops and spending the 300 billion/year here in the US employing the troops, the same contractors, and additional people to improve our infrastructure and energy grid? I read that modernizing our energy grid to a smart grid could bring our energy consumption down by 20%. Just think of what this would do to the oil prices for example.
Why don't we invest in technology and innovation? Right now the National Science Foundation and the National Institute of Health are really suffering with their budgets. This is a disgrace. We need to invest in these institutions and through them in small tech businesses in order to innovate and come up with the new solutions and cures of diseases.
Innovation and science does not only create wealth and jobs. Innovation and science could help us bring healthcare costs down as well benefiting such programs as Medicaid and Medicare. Innovations in engineering and medicine for example could bring surgery costs down to below $10,000 instead of $100,000. Or innovations could help people with Alzheimer’s have better lives.
James Sherk is incredibly disingenuous. Hiring costs are pre-tax, so higher tax rates do not prevent hiring. Tax cuts have been in place for a decade and have not produced jobs. Spending has NOT been tried (despite what we have been told), and would create jobs.
Please do not have him back on The Diane Rehm Show.
I am a business owner. There is a mistake the republicans keep repeating: there is a difference between personal tax (take home tax) and business tax. When I pay myself (I pay personal tax), the less I am taxed the more I take home, the less I will invest in my business. The less my business is taxed the more I have left over to invest. So ideally to see growth we need high personal taxes and low business taxes with incentives to reinvest the money.
I watched the telecommunications industry be deregulated in the 1980s and I can say that corporations love regulation.
They lobby our legislators for it. It seldom drops out of congress without a push from lobbyists hired by those who are regulated.
They especially like regulations that advantages them and disadvantages their competition.
Look how no regulations helped the financial industry cause the current recession.
Please ask your guests how big business reconciles one fundamental, causative factor in our current rescession -- lack of enforcement/regulatory oversight - with their position that new or different regulations benefit our country. It's breathtakingly hypocritical!
One of the panelists says that no government regulation could have prevented the current recession - a result of financial mismanagement. I disagree. The repeal of Glass-Steagall was an essential contributing factor leading to the financial meltdown. This was primarily but not exclusively the policy of Republicans.
I want to eat whatever Diane had for breakfast! Doing a great job Diane! Your asking great questions and holding everyone's feet to the fire!
Tax problems- I meant the quagmire of business exceptions and abuse via taxing losses here and profits abroad(tax free). Or getting individual advice, following it, and then being fined and taxed etc. And not having representatives able to do anything as they are not allowed to 'interfere'.
Did not mind while humans had exclusive free speech rights. Now corporations have the money and hence the largest voice in government as well. That is dangerous.
Believe Clinton had a campaign slogan which will sum it up nicely.
I seem unable to find lawful employment. Receive $200 in food 'stamps' ONLY. Veteran with health issues, 25 years to go for SS retiremewnet(LOL= like I'll live that long), served 'wrong' time for benefits nLOL.
Savings exhausted, credit card about maxed, home in foreclosure('safe' VA 30 yr fixed),
and...
We are a consumer economy with less and less consumer spending. If corporate does not want to invest their government largesse back into the economy then the government MUST even if borrowing on the future.
Or the rich will need to relocate/ increase security(physical AND virtual- hmmm where is most of the money? Must CC LULz and Anon and los scrpytkiddies)...
Our current debt crisis or 'spending problem' created by two unfounded wars and Bushjr tax cuts despite the spinning from your guest(S).
A certain large minority, mostly fear of a nonwhite president, and a muslim alien too will always vot antiObama. Frightening enough for general purposes but I believe as the Republicans(nTbgrs) and Democrats have fouled up SO MUCH I am ready for a nonhuman.
The crisis is now... and am amazed at the similarities between debate now and with Hoover and his Congress and economic climate.
No one believed my initial projected costs of the terror war(Iraq) either.
Or that I got out prior to bubbles bursting when I had investments... now if I had had money to invest at other times I'd own the world. And gone to college. Or afforded MENSA dues.
O' the stories we could share... unfortunately now most of the witnesses dead.
PS Guess who is no longer paying taxes(or back taxes- goodbye clearance hello new increasingly disparate desperate terrorist- er- citizen).
Ok, let's go with the fact that Government is too big as I continually hear the conservatives say. Maybe it is and maybe it isn't. However, what are the biggest parts about government? Entitlements and the military. One never hears "small government" conservatives say let's cut the military, one of the largest / most wasteful programs in the government.