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Economy

Obama Lays Out Jobs Plan, Decries Regulatory Race To The Bottom

President Obama tonight laid out a $450 billion job creation plan before a joint session of Congress, challenging lawmakers to repeatedly to “pass this jobs bill.” “Regardless of the arguments we’ve had in the past, regardless of the arguments we’ll have in the future, this plan is the right thing to do right now. You should pass it. And I intend to take that message to every corner of this country,” he said.

Obama called for a reduction in the payroll tax, investments in infrastructure, a plan to modernize up to 35,000 schools, as well as tax breaks for new hires and a plan to reform the corporate tax code that currently “stands as a monument to special interest influence in Washington.” Obama emphasized that many of these ideas have, in the past, garnered bipartisan support and he threw in some Republican favorites, such as approving pending free trade agreements.

However, despite drawing cheers from the Republicans in the crowd when he mentioned eliminating or streamlining regulations, Obama said that he would not use the economic crisis as an excuse to engage in a regulatory race to the bottom:

But what we can’t do – what I won’t do – is let this economic crisis be used as an excuse to wipe out the basic protections that Americans have counted on for decades. I reject the idea that we need to ask people to choose between their jobs and their safety. I reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients. I reject the idea that we have to strip away collective bargaining rights to compete in a global economy. We shouldn’t be in a race to the bottom, where we try to offer the cheapest labor and the worst pollution standards.

Earlier this week, the administration had to beat back reports that it was considering a moratorium on federal regulations.

The administration estimates that the plan will add one to two percentage points to GDP growth next year. The question, of course, is whether the package — which is bigger than originally reported — has any chance of making its way through the Republican-controlled House. Obama proposed paying for the package with a panoply of measures already rejected by the GOP majority, including removing tax subsidies for big oil companies.

Climate Progress

Obama Gives Strong Jobs Speech, Decries “Race to the Bottom, Where We Try to Offer the … Worst Pollution Standards”

As a matter of rhetoric, the President’s big job speech exceeded expectations, a solid A.  He used simple language and repetition — the cornerstones of effective public speaking — to promote his “American Jobs Act.”  He repeated some variation of the phrase “Pass this bill” 17times (see transcript here).

MSNBC’s Chris Matthews who, like many of us, has been highly critical of just how mealymouthed Obama has become, said it was “probably his most rousing political performance in a long while.”  HuffPost’s Howard Fineman writes, “Obama Puts Passion Into Speech Rarely Seen In His Presidency.”  If only Obama had been speaking this way for the past couple of years….

On substance, it was a solid B.  The biggest disappointment was that he never mentioned clean energy by name as a focus area.  No, I’m not going to keep giving him a failing grade for not talking about climate change in a jobs speech focused on the near term — although this speech shows precisely what he could have done 2 years ago to get the climate and clean energy jobs bill passed.

The most Obama said on clean energy was to continue his theme that clean energy is a core job-creating industry of the near future:

If we provide the right incentives and support – and if we make sure our trading partners play by the rules – we can be the ones to build everything from fuel-efficient cars to advanced biofuels to semiconductors that are sold all over the world.  That’s how America can be number one again.

And I have the Fact Sheet for the AJA, which points out the $25 billion school modernization effort can be used for “greening and energy efficiency upgrades.”  This is similar to the “Fix America’s Schools Today” initiative you can read about here.

The President also offered a strong defense for maintaining rules and regulations even during this tough times:

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NEWS FLASH

Out Of Town | With that, I’m heading out of town for a long weekend bachelor party to an undisclosed location that I’m told has no Internet and may not even have decent cell phone access. So expect few posts for the next few days.

Yglesias

The American Jobs Act

The President, wisely, opened his speech with an admonition to the media to focus less on politics and more on substance so I’m going to try to set my cynicism about the impossibility of any of this happening aside and simply note that the ideas in the speech today are good ones. Not every single one is my favorite stimulative idea (the employer-side payroll tax stuff, in particular, wouldn’t have been in my bill) and the President’s exposition of the concepts aren’t totally up to state of the art New Keynesian theories, but these ideas will help. The stuff on the infrastructure side and the stuff on the education side will both directly target problem areas in the labor market. The tax cut stuff will maintain consumer spending. What’s more, the traditional concern that tax-side stimulus isn’t fully spent doesn’t matter that much under the present circumstances. Even if people use that money to pay down debts, it speeds the debt-overhand problem and helps us out.

I do wish the President had spent a bit more time focusing on the slightly wonky subject of bond yield rates, but I’ll do it for him instead. The real yield on the 10-year bond is back to zero percent. At the five-year and seven-year horizons, the real yields are zero. That’s because the marketplace doesn’t want to fund current consumption and it doesn’t want to fund residential investment either. It wants to give the money to the government. It’s time to seize that opportunity.

All that said, in practical terms I think Ben Bernanke’s speech is a bigger deal. If the Fed gets serious about jobs, we’ll get some jobs.

Meanwhile, I can’t help but think that the American economy has performed sluggishly ever since George W Bush gave a speech to Congress successfully calling for a ban on human-animal hybrids. Clearly we need to deregulate this vital sector and win the future with chimera stimulus.

Climate Progress

Kate Gordon On Clean Energy Policy: We Are ‘Squabbling While Rome Burns’

By Jessica Goad, Manager of Research and Outreach, Center for American Progress Action Fund

The House Natural Resources Committee began its fall agenda today with a hearing on creating jobs through developing offshore and renewable energy resources. The Center for American Progress Action Fund’s Vice President for Energy Policy Kate Gordon was on hand to argue that green jobs are a bright spot in the economy, but warned that this success will not last if we do not create a market within the U.S. for clean energy:

In conclusion, the U.S., frankly, risks squabbling while Rome burns on this issue. The future of energy and the economy lies in cleaner energy solutions. We must embrace that future now or we will risk become the world’s great importers of technology and innovation rather than its leaders. Thank you.

Watch it:

Meanwhile, Committee Chairman Doc Hastings (R-WA) spent his opening statement describing 10 policies that the President should focus on during his speech on jobs this evening. Seven of the ten policies that Rep. Hastings detailed heavily promote fossil fuels, such as drilling more in the Gulf of Mexico, opening up sensitive places in Alaska to drilling, and developing oil shale resources. (The other three policies that Hastings included on his list relate to renewable energy, but as ThinkProgress previously noted, the solutions that the Republican members put forth on this issue could pose “unintended consequences” to the industry).

House Republicans continue to promote the mature and highly profitable fossil fuels industry by accusing the Obama Administration of hindering oil and gas development. A report released yesterday by Wood Mackenzie and paid for by the American Petroleum Institute found that opening up more areas to drilling and getting rid of “regulatory burdens” will create 1.4 million jobs by 2030. The Wood Mackenzie witness at today’s hearing expanded on this point by describing how the “current path of policies which slow down the issuance of leases and drilling permits.”

But as Stephen Lacey at ClimateProgress pointed out yesterday, the oil and gas drilling in the U.S. is actively and steadily increasing under this Administration. Headwaters Economics found that U.S. onshore drilling activity was at 91 percent of the 20-year high. And, the U.S. is currently drilling more than anywhere else in the world: today, according to industry research firm Baker Hughes, there are 1,968 oil and gas drill rigs operating in the U.S. and 1,700 rigs operating in the rest of the world combined.

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Climate Progress

Rick Perry’s Inane Miscue on Galileo and Climate Change

Galileo faces the Roman Inquisition who, without evidence, demand he recant his statements on heliocentrism.

The most head-exploding moment in last night’s GOP debate was this:

POLITICO: Gov. Perry, Gov. Huntsman was not specific about names, but the two of you do have a difference of opinion about climate change. Just recently in New Hampshire, you said that weekly and even daily scientists are coming forward to question the idea that human activity is behind climate change. Which scientists have you found most credible on this subject?

PERRY: Well, I do agree that there is — the science is — is not settled on this. The idea that we would put Americans’ economy at — at — at jeopardy based on scientific theory that’s not settled yet, to me, is just — is nonsense. I mean, it — I mean — and I tell somebody, I said, just because you have a group of scientists that have stood up and said here is the fact, Galileo got outvoted for a spell.

Let’s set aside that the U.S. National Academy of Sciences concluded its 2010 review of climate science saying these are “settled facts“: The “Earth system is warming” and “much of this warming is very likely due to human activities.”

It’s the Galileo line that drew all the attention.  The media may not be ready to offer a full-throated defense of climate science, but they know that Galileo was the scientist, that the Inquisition were composed of religious zealots analogous to Perry (who prayed for the EPA to stop environmental regulations), and Galileo didn’t get “outvoted.”

Invoking “Galileo” is Perry’s “dog-whistle” to the deniers, a name they like to invoke on their side, as laughable as that may sound — see “How climate science deniers spread doubt for political ends.”

NY Times Science reporter Henry Fountain has a piece that discusses this issue in more detail, “Historian Says Perry Misses Point on Galileo and Climate Change”:

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Alyssa

Radio 9/11

Great, great piece by Benjy Sarlin about two of his high school classmates at Stuyvesant, Jukay Hsu and Himanshu Suri, who went from organizing the student body of the high school traumatized in the wake of the attacks to careers setting up media organizations in Iraq and as half of Das Racist, respectively:

Ten years later, neither is completely sure how 9/11 affected him. “I can’t afford therapy,” Suri jokes. The connections are clearer in his case: he credits the attacks with planting the seeds of racial consciousness that would eventually define his rap aesthetic. “It was the first time there was a feeling of pan-people-of-color for all the South Asian people, the Pakistani kids, the Indian kids,” he said of that period. “It was the first time we made jokes about it amongst each other, referring to ourselves as brown, in order to cope.”…

From the outside, it’s hard not to read into Hsu’s career choice as well — Army officers with both a Stuyvesant diploma and Harvard degree aren’t exactly a dime a dozen — but he downplays the connection to 9/11. He developed a passion for development as an undergraduate, but ultimately decided to enter the Army over pursuing a Ph.D. in economics. In 2008, he was shipped to Iraq to lead a rifle platoon in the Sunni triangle. After a few months of patrols and raids, his battalion commander took note of his interest in local government and tasked him with leading development projects for an area roughly the size of Delaware. His proudest achievement was helping launch the region’s first local radio station.

It’s interesting to me that, in their own ways, both Hsu and Suri went into communications. It would be fascinating to see some sort of data about what careers college and high-school students on September 11 thought they were going into before the attacks and what they actually ended up doing for a living. Of course, everyone’s plans change along the way, but I’d love to know if the arc ended up bending towards public service or inter-cultural understanding in the way we like to think it did.

Economy

Romney Unveils Economic Plan In Foreclosure-Blighted Nevada, Never Mentions Housing

2012 GOP presidential contender Mitt Romney unveiled his economic plan this week, with the promise that his plan has “the potential to revitalize our economy and to reignite the job-creating engine of the United States.” (As we’ve noted, Romney’s plan would actually result in huge tax cuts for the rich and corporations that would cause the deficit to explode.)

Romney unveiled his jobs plan in Nevada, the state that was arguably hardest hit by the implosion of the housing bubble. In July, one in every 115 homes in Nevada received a foreclosure notice. However, as the Las Vegas Sun’s J. Patrick Coolihan noted, Romney completely failed to address this critical part of the nation’s economic problem:

Conspicuously absent from the Romney plan is anything about housing. Construction spending has led us out of just about every recession since World War II. But because there was so much overbuilding — especially in Las Vegas — construction is dormant. And because nationally there are 4 million mortgages seriously delinquent or in foreclosure, construction will remain flat for years. Romney has nothing to say about this.

Indeed, Romney never mentioned housing or foreclosures during his speech, and makes only a passing reference to “millions of homes [that] have been lost to foreclosure” in his economic plan document, without suggesting any remedy.

The fact remains that 1 million homeowners are expected to go into foreclosure this year, producing a serious drag on the economy. As Federal Reserve Chairman Ben Bernanke said in a speech today, “the housing sector has been a significant driver of recovery from most recessions in the United States since World War II, but this time — with an overhang of distressed and foreclosed properties, tight credit conditions for builders and potential homebuyers, and ongoing concerns by both potential borrowers and lenders about continued house price declines — the rate of new home construction has remained at less than one-third of its pre-crisis peak.”

Thus far, federal anti-foreclosure programs have been woefully inadequate to the scale of the problem, leading to a glut of properties on the books of banks and dragging down home values for entire neighborhoods. Yet Romney delivered a speech at the housing crisis’ epicenter and managed to suggest no remedies at all.

Yglesias

Ben Bernanke Hints At Further Easing

Ben Bernanke’s speech today in Minneapolis is extremely similar to some things he’s said previously, but this time around in addition to reiterating that “the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus” he also concluded by saying that “the Federal Reserve will certainly do all that it can to help restore high rates of growth and employment in a context of price stability.”

Now of course in the part Bernanke hasn’t said things like “the Federal Reserve will refuse to help restore high rates of growth and employment” but there has been this weird gap that most people in the press aren’t noticing. Bernanke, unlike some commentators, has never said that the Fed is out of ammunition. He’s always maintained that they have additional tools, so the implication has always been that the tools aren’t being used because the Fed has believed the situation is okay. Now, though, he’s blocked out extra time at the September meeting to discuss those tools with his colleagues and he’s saying that the Federal Reserve will do all that it can. And it can do a lot! It’s time to learn from Switzerland and get moving.

NEWS FLASH

After 40 Years, There Is Still No Federal Rule Regulating Excessive Heat On The Job | In These Times’ Mike Elk notes that the Occupational Safety and Health Administration has, for 40 years, had the ability to regulate excessive heat in the workplace, yet has failed to ever issue a federal rule governing how hot is too hot for employees to work safely. Over the last two decades, “at least 523 workers have died from heat stroke and another 43,000 have suffered from heat–related injuries serious enough to have to miss at least one day of work.” “OSHA has demonstrated an alarming lack of oversight over the past 40 years in the face of this recognized and entirely preventable hazard,” said Dr. Sidney Wolfe, director of Public Citizen’s Health Research Group.

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