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Economy

Time Warp: Republican Committee Chairman Blames Current Lack Of Job Creation On FDR And LBJ

House Financial Services Committee Chairman Spencer Bachus (R-AL)

Last month’s jobs report was undeniably dismal, and Republicans were quick to place blame on President Obama and the Democrats (even after they took credit for job gains that were made since January). But House Financial Service Committee Chairman Spencer Bachus (R-AL) decided today that blaming the current crop of Democrats isn’t quite enough.

During his opening statement before a hearing on monetary policy, Bachus explained that, in his opinion, the blame for weak job creation should be placed at the feet of former Presidents Franklin Delano Roosevelt and Lyndon Johnson:

BACHUS: The uncertainty and lack of confidence are at the center of the failure of our economy to achieve a robust recovery with job creation, job creation which would be necessary to support the continued improvement in our citizens’ lives that we’ve come to expect as Americans. The origins of this crisis of confidence is debatable. The Great Recession and its legacy of job losses and home foreclosures is a contributing factor, and those are things we’ll have to work through. And as your testimony said, it will be a long process. But in my opinion seeds of this lack of confidence were first sown in well-intentioned programs of the 1930s and of the Lyndon Johnson Great Society.

Watch it:

According to Bachus, businesses are so freaked out about New Deal and Great Society era programs (presumably Social Security and Medicare) that they aren’t hiring. But according to the June National Federation of Independent Business survey, the reason businesses aren’t hiring is easy: “when sales pick up, owners will have a reason to hire more workers to take care of customers, to produce more output and will have a reason to invest in new equipment and expansion.”

Bachus didn’t deign to explain his theory, but it’s worth pointing out that, while the private sector is slowly adding jobs, the public sector hemorrhaged jobs last month, coinciding with what conservatives say they want. After all, Speaker of the House John Boehner (R-OH) essentially shrugged when asked if he cared about public sector job losses, while Rep. Kevin Brady (R-TX) this week advocated that more government workers be laid off.

Politics

Minnesota Bars Running Out Of Beer Due To Government Shutdown

Around 300 bars and restaurants in Minnesota will not be able to buy alcohol until the state reaches a budget agreement and ends its government shutdown. Since closing down all but the most important services on July 1, the state has stopped issuing the $20 buyer cards required by retailers to replenish their alcohol inventories — bad news for Minnesotans already hurting from the cuts to their social services.

Restaurants are already reporting being low on inventories, and Frank Ball, the executive director of the Minnesota Licensed Beverage Association, calls the situation “crippling” to the alcohol retail industry. In an interview with Minnesota Public Radio’s Cathy Wurzer, Ball warned against beer spoiling in warehouses and bars closing:

Wurzer: “The penalty for buying or selling alcohol without this card is about $250 for the first offense. Do you think it might be wiorth it to some of these bars and restaurants and liquor stores and their providers for that matter to just kind of chance it and risk paying he fine?

Ball: “They’re sitting on millions of dollars worth of sales here, and they could be fined up to a thousand dollars for the suspension of their license for each event. But there’s nobody to enforce that law. So we don’t cover the wholesalers–that’s a decision they’ll have to make–but [with] our retailers, we’re telling them, if you’ve got a wholesaler that will sell to you, buy. Because otherwise if they run out of their product, our bars and restaurants are going to fold. They’re going to close.”

Along with losing their neighborhood bars, Minnesotans may also have to cope with the loss of MillerCoor’s 39 brands of beer. After misfiling its brand-label registration paperwork in June, the company could not procure the necessary documents from the state before its offices shut down a couple of weeks later.

But beer is only the latest victim in the state’s government shutdown debacle. Each day, Minnesota is losing $1.25 million from lottery sales and $200,000 from the closures of its state parks. By month’s end, the state coffers will be short $52 million it would have collected in tax revenues. And yet, as social services suffer and government workers idle without paychecks, lawmakers have made no movements recently toward a budget compromise. If the state legislature stopped focusing on politics and started focusing on people, we might start to see progress.

Sarah Bufkin

Economy

Sen. Graham: GOP’s Defense Of Tax Loopholes Is ‘Giving Money Away To A Few People At The Expense Of Many’

As talks surrounding raising the debt ceiling grow all the more heated, Sen. Lindsay Graham (R-SC) broke away from Republican orthodoxy yesterday when he told ABC news that the GOP needs to “reevaluate” its approach to the negotiations by agreeing to a mixture of spending cuts and revenue increases (via closing tax loopholes) as a means of reducing the deficit:

GRAHAM: The middle ground for me is to close tax loopholes, like ethanol. We give money away to a few people at the expense of the many, so why don’t we close some of these loopholes and bring the money back into the Treasury?

ABC: Including oil and gas?

GRAHAM: Anything, everything. [...]

ABC: Private jets?

GRAHAM: The whole deal. [...]

ABC: Bottom line, does the debt ceiling get raised by August 2?

Graham: I don’t know, right now I’m very worried. [...] Our guys are saying we’re not going to generate any new revenue. They’re saying we’re not going to do it without new revenue. Well, somebody’s got to blink here. The middle ground for me would be to take the money you generate from closing loopholes and apply it to the deficit.

Watch it:


Graham’s plea for a shared sacrifice to close the deficit comes at time when the GOP leadership is particularly unified against any revenue increases — including closing corporate loopholes. At least 19 different polls show the American public supports revenue increases as part of the strategy to reduce the deficit.

In fact, just one in five Americans want the deficit to be reduced entirely through spending cuts. And it turns out that voters prefer that these revenue increases come from millionaires, who currently pay record-low taxes.

Despite Graham’s willingness to break away from his party’s platform, he is not optimistic about a compromise on the debt ceiling. “Right now, I’m very worried,” Graham said. When asked directly if he thought a compromise would be reached, he said, “If I were a betting man, I’d bet no.”

Check out our special coverage of the Debt Ceiling Showdown.

Jen Kalaidis

Politics

News Corp-Funded ‘U.S.’ Chamber Leading Campaign To Weaken Key Anti-Bribery Law

Photo courtesy of News Corpse

Demand an investigation into News Corp. Sign our petition here.

News Corporation faces a potential U.S. investigation and prosecution under the Foreign Corrupt Practices Act (FCPA), a law that bars companies with U.S. ties from bribing foreign officials to get or retain business, stemming from widely-reported allegations of bribing police. News Corp, like several other major corporations recently targeted under the law, would not only be liable for the costs of any investigation — whether or not it is ever charged — but could also face billions in fines and even jail time for its executives if it were found guilty of violating of the anti-corruption statute.

The Obama administration has stepped up enforcement of the FCPA in recent years, and one FCPA expert, Butler University Professor Mike Koehler, told the Guardian that he would be “very surprised” if U.S. authorities don’t become involved in the growing News Corp scandal.

This stepped up enforcement of the FCPA has not escaped the notice of the U.S. Chamber of Commerce, which has reportedly received millions of dollars in funding from News Corp. The Chamber is now leading a high-profile campaign to weaken the landmark anti-bribery law.

On October 27, 2010, the Chamber’s Institute for Legal Reform held a summit at which it released a white paper outlining the Chamber’s suggestions for weakening the FCPA. After its 2010 summit, the Chamber began actively lobbying Congress to weaken the FCPA. In March of this year, the Chamber’s ILR hired marquee talent, former Bush administration Attorney General Michael Mukasey, to aid in its push to weaken the law.  According to filings with the Senate, the Chamber’s ILR  spent $6,030,000 lobbying on the FCPA and numerous other bills during the first quarter of 2011. During the 4th quarter of 2010, the Chamber’s ILR spent an additional $14,490,000 lobbying on the FCPA and other bills.

In addition to its own direct lobbying activities, the Chamber’s ILR engaged several lobbying firms during the first half of this year to help it push Congress to weaken the anti-bribery law, including Brownstein, Hyatt, Farber, and Schreck; Hollier & Associates; Akin, Gump, Strauer, Hauer & Feld; and Debevoise & Plimpton (Mukasey’s firm).

The Chamber’s ILR, in its white paper, lamented the fact that the corporations would continue to be held accountable for their criminal activities:

Unfortunately for the business community, an active FCPA enforcement environment appears likely to continue.

Specifically citing the Chamber’s lamentations, the Republican-led House of Representatives is currently drafting a bill to weaken the FCPA. A hearing held last month by Rep. James Sensenbrenner (R-WI), who chairs the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security, gave Chamber lobbyist Mukasey a platform to reiterate the Chamber’s ideas for weakening the anti-bribery law.

While any changes to the FCPA may come too late to help News Corp, it’s clear that the Chamber’s campaign to weaken the landmark anti-bribery law is already showing some early signs of success.

Special Topic

Chris Matthews Clowns Steve King, Forces Iowa Congressman To Admit He Doesn’t ‘Trust The Words Of Any Source’

Reps. Steve King (R-IA), Michele Bachmann (R-MN), and Louie Gohmert (R-TX) introduced a bill today that they claim would help manage a government default if the debt limit is not raised by Aug. 2. The legislation is motivated by the right-wing triumvirate’s view that the default would not have severe repercussions on our economy. “I think we have plenty of money to service our debt,” King said today.

This afternoon on Hardball, host Chris Matthews wondered how King could come to such an aberrant determination that a default is not a threat. “You have some superior knowledge — what basis do you have for your judgement?” Matthews asked. “I do have superior knowledge, thanks for recognizing it,” King jokingly responded.

Over the next few minutes — at the very same moment Moody’s was reporting that it may downgrade the U.S. AAA bond rating — Matthews pressed King on where he gets his knowledge. Hilarity ensued:

MATTHEWS: Who are the people you’re dealing with? [...]

KING: The American citizens. [...]

MATTHEWS: So you’re polling in your district to find out whether the United States goes into default or not at the end of this month. … They know what’s going to happen…

KING: I have an independent judgment as well.

MATTHEWS: Ok tell me where it comes from.

KING: It comes from a long experience of dealing politically, and in business, and raising a family, and being an American citizen…

MATTHEWS: What does raising a family teach you about international finance? [...]

KING: That’s not my only source of information — is raising my children. [...]

MATTHEWS: Do you trust the Wall Street Journal, do you trust the New York Times?

KING: I read the Wall Street Journal. I sometimes read the New York Times. I don’t really trust it. I don’t trust the words of any source.

Matthews continued pressing King on whether he trusts the Chamber of Commerce and other conservative organizations who warn of a crisis if the debt limit isn’t raised. King said he challenges all those sources.

Matthews then asked if King could cite one — just one — international or domestic expert who he trusts on these issues and agrees with his view. King, of course, could not name one. Watch it:

Check out our special coverage of the Debt Ceiling Showdown here.

Yglesias

Why Do Census And BLS Figures On New Firms Differ So Much?

The Kauffmann Foundation has been pushing its paper on how new firms are generating and retaining substantially fewer jobs than they used to, and this trend predates the recession out into the blogosphere this week. But I don’t really know what to say about it. This point on the data they used to reach the conclusion is, however, quite interesting:

Because of unknown differences in the data sources from Census and BLS—a mystery we urge other researchers to tackle—employment within business cohorts is somewhat cloudy. The Census Bureau’s data on employment appear significantly more positive than the BLS data. But, rather than attempt to sort out the differences between the two series here, we simply present both, and urge readers to recognize that, despite the differences, the overall story in both series is disturbing.

People don’t spend much time worrying about government data, but it actually matters quite a bit what we do and don’t have information on and how reliable the information is. I often wish, for example, that the government tried to track the price of urban land.

NEWS FLASH

The Brave New Climate Reality | At Brave New Climate, Barry Brook gives a graphic update on the rising climate crisis, including the chart below. He also quotes Hans Joachim Schellnhuber: “Our body temperature is about 37 degrees. If you increase it by two degrees, 39, you have fever. If you have add four degrees, it is 41 – you are dead, more or less. And you have to think about the body temperature of our planet, which has been brought about through many, many processes over many, many millions of years.”

Health

Proposed Exchange Regulations And The LGBT Community

Earlier this week, the Department of Health and Human Services released the long-awaited set of preliminary guidelines for the development and operation of the health insurance exchanges. The exchanges, part of the reforms introduced by the Affordable Care Act, are intended to connect small businesses and individual consumers with health insurance options.

Gay and transgender people and their families stand to benefit significantly from the exchanges, as they are roughly twice as likely as the general population to be uninsured (largely because discrimination in employment and relationship recognition limits their access to employer-sponsored private coverage). The exchanges, which will utilize subsidies and tax credits to connect customers with coverage offered by private insurers, will help LGBT people access coverage even if they are unemployed, if they work for an employer who does not offer health insurance benefits, or if their employer refuses to offer benefits for same-sex couples. Thus, it is crucial that the design, implementation, and management of these new insurance marketplaces take the needs of LGBT people into account.

The proposed rule includes nondiscrimination protections on the basis of sexual orientation and gender identity. To buttress these protections, federal and state policies around the essential health benefits that private insurers participating in the exchanges will have to offer — guidelines that the Department of Health and Human Services is still developing — should provide similar protections.

This week’s rule is an important step in constructing the architecture of a state-based exchange system that is prepared to serve the needs of all its future consumers, including gay and transgender people and their families. The states should prepare to seize the opportunities offered by the proposed rule to create exchanges that combine flexibility of design with a firm commitment to ensuring that coverage reaches everyone who needs it.

Politics

John Kasich Dismisses Overwhelming Opposition To His Union-Busting Law As No Big Deal

Despite massive protests outside the state capitol, Republicans in Ohio’s state legislature pushed through Senate Bill 5, a union-busting law that went even further in curbing public employees’ collective bargaining rights than a similar law in Wisconsin. Gov. John Kasich (R) signed the wildly unpopular law, and has since seen his approval ratings plummet to depths that he struggles to explain.

The protests did not stop with Kasich’s signature, however, and opponents of the law went to work collecting signatures to put a referendum on the ballot next Election Day that could repeal SB 5. In fact, the law’s opponents collected nearly 1.3 million signatures, a million more than they needed to successfully get the referendum on the ballot. They brought so many signatures to the state election board, they needed a tractor-trailer to deliver them.

But this morning on MSNBC’s Morning Joe, Kasich pretended that the opposition to his signature piece of legislation was no big deal, saying with all sincerity that “there was no drama” in his first six months as governor:

KASICH: What’s driven my negatives up is the fact that we’re trying to rein in and give local communities the abilities to control their costs with public employees… So it’s just protesters and noise. But when it comes to the budget, no protests, no noise, and we got it through. And got through virtually all of what we really wanted.

Watch it:

The people of Ohio, however, disagree. Not only do big majorities support repealing SB 5, they also oppose his budget. As for Kasich himself, polls have shown that if Ohioans could have a do-over of 2010, when he defeated former Gov. Ted Strickland (D), they’d hand him a 25-point defeat. Of course, to Kasich, that’s all just noise.

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