AFL-CIO President Richard Trumka will address a rare public meeting of the Bowles-Simpson fiscal commission today and tell them that the best deficit reduction strategy at this time of mass unemployment would be job growth. Over 15 million Americans are out of work, and therefore the huge opportunity loss of economic and tax revenue creates a deficit that could easily bring down the debt over the long term. Trumka will warn about withdrawing stimulus spending before the recovery has taken hold, which would be catastrophic. Here are some advance quotes:
“Without a significant reduction in the trade deficit, only economic stimulus in the form of deficit spending can make up for the remaining shortfall of aggregate demand until private sector demand regains its footing.
“But instead, we are heading in the opposite direction. We are prematurely withdrawing economic stimulus, allowing the Recovery Act to phase out and standing by passively as state and local governments plan to lay off 900,000 workers.
“By withdrawing economic stimulus, we run the risk not only of prolonging the jobs crisis for several more years, but also of bringing about a “double dip” recession—or even what Paul Krugman calls “a third Depression.”
In addition to Trumka’s remarks, House Democrats and the White House are taking direct aim at John Boehner’s comments yesterday. Press Secretary Robert Gibbs said yesterday that Boehner “open(ed) one’s mouth and remov(ed) most of the doubt that you’re completely out of touch with America.” And two House members, Ways and Means Committee Chairman Sander Levin and Social Security Subcommittee Chairman Earl Pomeroy, blasted Boehner as well:
“The American people should take note of the Republican Leader’s proposals to undermine Social Security,” said Chairman Levin. “Generations of Americans have worked long and hard to earn the benefits paid through Social Security and these funds should not be used to pay for anything else, as suggested by Mr. Boehner. This outrageous proposal pulls the cover from the Republicans’ misguided priorities to undermine the universal support Social Security has enjoyed for generations.”
“Republicans want to repeal the estate tax for billionaires and are holding up Wall Street reform, but now say they want to finance a war and reduce the deficit by cutting the benefits that seniors have paid for all their lives” Subcommittee on Social Security Chairman Earl Pomeroy (D-ND) said. “The Minority Leader’s comments today express a dangerous view of one of our country’s most important programs. Minority Leader Boehner wants to put the cost of the war on the backs of our seniors, including tens of thousands of veterans, even as he cries foul at the slightest suggestion that the wealthiest individuals in this country should forgo a tax cut.”
This is good for a few reasons. First, a few politicians have the residual understanding of the value of the New Deal to see political advantage in protecting the most successful government program in American history. Second, Trumka is leading the way in making the actually standard economic argument, only thought of as novel in Washington circles, that the only way to deficit reduction is job growth. This shouldn’t be a foreign concept, nor should defending Social Security. But in the current political environment, I’m glad to see some sanity emerge.




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This is a free forum for Trumka. But let’s face it he has been incredibly ineffectual on jobs so far. If labor were serious about jobs or really any labor issue, they would have broken with this Administration months ago. As for the White House and lapdog House Democrats taking shots at Boehner, that is one heck of an example of hypocrisy. This is the same White House which created the Cat Food Commission in the first place, and on the very day that its corporatist candidate in Blue Massachusetts was getting hammered by a Teabagger because liberals stayed home. As for House Democrats, what larger stimulus package have they been fighting for lately? You know something real, not just cosmetic.
I’m with Hugh.
Let’s not get excited about this just yet.
Labor is in a tough spot right now. I read just yesterday how two former union guys, and now powerful NJ power brokers(Stephen Sweeney .. and Camdem County power broker Norcross) are facing the wrath of unions because those two are jumping on the Chris Christie union-bashing bandwagon. Lets face it, national Democrats have shit on unions for at least the last 20 years. It’s good to see the unions say no more. I am sure they thought working with Clinton and Obama would get them somewhere. Now they are learning the only way you get Obama to listen is to cause him pain(in the figurative sense).
Did sanity emerge, or did the curtain come up?
Trumka could get some big construction projects to put his members to work then be out of town by 5:00 pm.
Obama will play Trumka like a cheap violin. Trumka thinks he can shift the WH to labour’s view and that ain’t gonna happen. Unemployment may well be at a record level but as long as the finance industry is reaping huge profits unemployed workers are not an important issue.
More empty sternly worded statements, I see.
Woweee, gee, I see the NATO forces are strong enough to repel an offensive attack by a couple of gunmen. Color me impressed.
I am a Trumka fan, but this is remarkably unimpressive.
From the folks that brought you the Catfood Commission over Congress’ objections, this is fricken rich…
I wouldn’t say that the White House decries deficit mania when it was the White House that created the deficit commission.
When the cat food commission gives the predetermined results to congress for an up or down vote, obamarahma will not utter a word in rebuttal. How can obamarahma look at himself in the mirror talking like this now, but appointing the commission in the past?
This is actually good, as he’s forced Obama to join him in criticizing the Cuts-Are-Cool mentality as exhibited by Boehner and the GOP, and Obama will now have difficulty in walking this back. Obama suddenly realizes that he and the Dems need to put a ton of daylight between themselves and the GOP, and they’d better start doing it yesterday.
It’s called “doublespeak.” Comes from Orwell. The ability to have conflicting views and to believe in and advocate both.
(listening to Kagan hearing) Holy shit, Arlen Specter is one passive/aggressive bitter old man.
Shouldn’t your headline read:
“Trumka decries White House’s and House Dems’ Deficit Mania.”
Bwahahahaha.
O will say whatever he wants whenever he wants to say it. No consistency, no embarrassment about hypocrisy. Besides, who cares what he sez, we all know what he’s doing.
Ditto Hugh et al. The White House may be decrying deficit psychosis, but it’s fully on board with the mania.
A creature of his own making. Isn’t it strange what elected people will do to their own lives when, if they had been honest and decent, it would have been quite different.
I wish Trumka well – why not at this point? But I expect not much to come out this that will benefit workers. Obama will nod and smile at Trumka, mouth empty platitudes about how non-bipartisany the Republics are, and then turn around and do what his corporate masters tell him to do, which is screw the “small peeps,” aka Trumka’s constituents.
Trumka is probably not doing Kabuki show, but BHO sure is. Don’t believe a word that comes outta that man’s mouth, unless he’s praising the corporations, the banksters and Wall St – you know, the only “contituents” that matter to BHO (aka the “big people”).
Indeed. Bingo. BHO doesn’t need to “walk” anything back. It’s all Kabuki show all the time for the Barackstar.
Hey Catfood Commission Jagoffs:
Ever hear of a thing called “infrastructure?” Look it up. I’m pretty sure it’s in the dictionary.
What “economic stimulus” are they refering to?
So we can take $300B and pay the 15M unemployed $20 per hour to tie boondoggles for the rest of the year. The $90B in tax revenue created could easily be applied to bring down the debt.
Blue Texan’s regularly scheduled post is up: Sharron Angle: Separation of Church and State is Unconstitutional, Thomas Jefferson Was “Misquoted”
Obama in a meeting with Bernanke yesterday (clip on DN!):
“,,,we’ve got to continually push the pace of economic growth…”
economic growth = capitalistspeak for increase in wealth (for the wealthy, not the workers)
Trickle down economics. Still.
Trumka saying something contrary to the Obama deficit commission’s mandate won’t force Team Obama to change course. The fact that TO didn’t immediately contradict Trumka probably just means they don’t really care what he says.
Can’t have economic growth without controlling inflation. Can’t control inflation without making sure that there is no wage improvements for the middle-class. Increased productivity is the same as reduced cost for wages.
Correct.
Agreed that it is helpful for there to be a voice in favor of job-creation initiatives.
But if labor is going to become a player in this game, Trumka has to be a lot more forceful and creative.
the rethugs believe that they have a winning strategy and that finally they can get rid of all those “entitlement” programs like Social Security and Medicare. Along with the recently passed HCR. IMPO the reason that they believe this is because they think that the nations sheeple do not listen to what they are saying on the news or in the papers but simply latch onto and believe whatever propaganda that the rethugs are pushing. It does not help that the MSM appears to be firmly on the rethugs side. What happens when the rethugs win and then cancel all those programs? Well, our entire social structure falls apart. Boy, I sure as hell hope that I am dead before the Authoritarian rethugs/corporate butt boys take over and turn the country into a 3rd world hellhole.However, I am thankful that I had to buy out of Social Security-cost me $15K cash before I was allowed to retire
Bingo. Forecast calls for empty populist rhetoric until November, then Obama and the Dems resume standard operating procedure of crapping on everybody.
There is no “debate” between Boehner and Obama over this issue. The only difference, Obama has to have some plausible deniability that he doesn’t favor his hand picked commissions surprising! findings to cut Social Security. That plausible deniability will be enough for the Orange Kremesicles, the TPMers, and the rest of the “centrist” brigade to excuse him and to continue to root on this sorry son of a bitch.
Until January when the regime changes due to election results? Then they have to find new ways to channel their desires into actions. BTW, what happens to the census if the majority in the House and/or Senate changes. Does the majority party get to draw new districts?
Good question. Sorry, I don’t have an answer.
Tom Tomorrow has a terrific summary of the excuses employed by “sensible liberals.” Of course since it is likely to rile the multitudes of Obama apologists, Salon declined to provide a front page link.
Sensible liberalism in the age of Obama
That is outstanding. Any chance you can roll that up and deposit it deep in Ezra Klein’s backside? You can wear gloves.
They could, you know, raise taxes on the rich to bring down the deficit. Bush’s tax cuts are the biggest component in the budget imbalance.
I dunno, while doing so would place it in close proximity to Ezra’s head, how can we assume that it would be read?
Want some creativity,laborite?
How about Trumka getting his butt down to the Gulf and creating a union for ALL those who have lost their jobs, income and livelihood from the BP oil gusher?
AND that includes folks like restaurant and real estate folks,too.
I seriously doubt that those 11 oil rig workers that perished in the Deepwater explosion were union members,btw.
Perhaps, since substantive cuts in defense spending is forever off the table. A trillion dollars pissed away here and a trillion pissed away there eventually adds up to REAL money.
Everybody knows that the USA can’t be safe unless we outspend every other military establishment in the world combined– including NATO! :-(
It is treasonous to suggest otherwise. I know I couldn’t sleep at night if we didn’t maintain hundreds of military bases outside the U.S., ready to defend capitalist hegemony wherever it is threatened.
Exactly.
Why not a standardized collective bargaining agreement for oil clean-up workers that includes prevailing wage, health insurance, and other standard benefits? We know the cleanup will be going on for years.
It should. The Democrats are more complicit than the Republicans, at this point. If they want to ignore the deficit, they are free to do so. They choose not to, and they choose to finance the war instead, just as Boehner suggested.
“Difficulty in walking this back”? You mean like the difficulty he’s had in walking back virtually every damn thing he campaigned on, from the public option to closing GITMO to reforming FISA to ending indefinite detention?
Obama doesn’t give a rat’s ass about the common person. In fact, he hates them because they are a reminder of his own somewhat humble past. And he’s going to submit the pre-ordained cuts to SS and Medicare to a lame duck Congress right in the middle of the holiday season, a sure distraction for much of the press and public alike.
FUCK OBAMA.
The state legislatures or committees or commissions thereof do the actual redrawing of districts. So what you’re talking about is the results of the state legislative elections. Of course, elected officials on the national level of the parties get involved in helping steer the lines in the right (most favorable to them) direction.
Trumka is completely useless if he does not see this oil spill as an opprtunity to educate Americans about the NEED for a collective voice in bargaining with big business.
And if he is really serious about making some headlines, why not consider publicly asking the White House for some drawdown on some of the trillions of US dollars going yearly to the Middle East,including Israel?
Check out the definition of “perfidy” ,sometime.
Good article on HuffPo. The authors note how much the AmericaSpeaks participants disagreed with ol’ Petey’s hoped-for solutions to the deficit “crisis”.
http://www.huffingtonpost.com/lawrence-jacobs/deficits-social-security_b_630215.html
We already do that.
Check out The Punk.
“Andy Stern, a key member of the deficit commission, is pushing to invest a significant portion of the Social Security trust fund in private companies through the stock market, the former labor leader told HuffPost. ”
Same article, here’s Dean Baker making a market call.
“If he’s talking about getting money out of the trust fund for that purpose, I could live with it. You’d get a higher return now that stocks are falling.”
Oh gee, sign me up.
http://www.huffingtonpost.com/2010/06/30/andy-stern-invest-social_n_631228.html
I agree – indeed the tax on the rich must go higher than under Clinton so as to repay the bonds issued to fund the tax cut for the rich.
Indeed we can not afford the tax policies Obama has proposed to benefit the “middle class” per the CBO – his permanent reduction in the alternative minimum tax and extension of tax cuts enacted during the Bush administration for families making less than $250,000 will bankrupt us since the CBO says under the Obama cuts for those under $250,000 from the Clinton rates to the Bush rates we end up with a national debt that would soar to 87 percent of GDP by 2020, exceed its historical peak of 109 percent by 2025 and hit 185 percent of GDP by 2035.
The problem of course is pretending the middle – the $40,000 per year folks – should include the $249,000 per year folks in their club. The Obama/Bush cuts do not help the middle – they help the upper middle and lower well off – and indeed even the rich because the cut on income under $250,000 lowers the tax on all of those making more than $250,000 because the final tax for the rich is the sum of the tax on the money under $250,000 – at the lower rate – and the tax on the income above $250,000 that will be taxed at the Clinton rate.
And we know the health reform “savings” will be given back as corporate welfare in some future compromise with the GOP – after all this the Obama Presidency.
I AGREE WITH STERN.
Invest in non-gov bonds and end the nonsense of “worthless IOUs -the money has already been spent.
I do not. “End the nonsense worthless IOU blah” is a pretty thin reason to allow the completion of the corporate takeover of our government. You are actually in favor of handing everyone’s retirement over to wall street money managers and their corporate clients? Have you ever done any investing? You learn pretty quick that all your broker is is a salesman for the funds, his pay rate is dependent upon how your money is invested. Do you really want your financial interests aligned with BP’s And AIG’s?
I find that position pretty jejune, given all we’ve seen.
And oh yeah, “the money” has NOT been spent, it’s been lent to the government to pay for tax cuts for the rich and Boner wars.
Time to pay up, Uncle Sam.
I mean, tell me Andy the Punk’s scheme is not the very definition of corporate welfare.
Go ahead, tell me.
jejune…
I wish I had selected that for my screenname.