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Economy

Bachmann Still Claiming Income From Federally-Subsidized Farm She Insists She Doesn’t Benefit From

A few months ago, the Los Angeles Times pointed out that virulenty anti-government spending Rep. Michele Bachmann (R-MN) was receiving income from a farm that collected federal subsidies. Bachmann responded by claiming, “the farm is my father-in-law’s farm, it’s not my husband and my farm. My husband and I have never gotten a penny of money from the farm.” However, Bachmann claimed income from the farm on her 2009 financial disclosure form.

As McClatchy noted today, Bachmann — all her protests aside — claimed income from the farm again in 2010, which were filed last week:

Despite repeatedly asserting that she has never received income from a family farm that has drawn federal subsidies in the past, Rep. Michele Bachmann again listed the farm as a source of income when she filed her 2010 personal financial disclosures late last week. Bachmann, R-Minn., also reported that the farm had more than doubled in value since 2009. [...]

Bachmann’s financial disclosures paint a different picture. Since 2006, she has reported receiving between $37,504 and $120,000 in income from the farm, including between $5,001 and $15,000 that she disclosed for the 2010 calendar year.

Bachmann also reported that her farm doubled in value over the past year: “In 2009, Bachmann listed the farm as an asset worth between $100,001 and $250,000. In her 2010 forms, Bachmann valued the farm between $500,001 and $1 million.” The counseling clinic that Bachmann runs with her husband has also received federal funding.

Justice

Rick Perry: ‘I Don’t Think The Federal Government Has A Role’ In Education

At a campaign stop in Iowa yesterday, Perry added something else to the long list of things he insists are beyond the federal government’s power — any involvement whatsoever in education:

QUESTION: I would like to know your position on the federal government’s role in my children’s education.

PERRY: I don’t think the federal government has a role in your children’s education. . . . I know there’s probably a few of you in here who have not read my book “Fed Up.” But I talk about the intrusion into our lives by the federal government in a host of different areas. Education is one of them.

Watch it:

Of course, this is hardly the first time time that Perry took a constitutional swipe at federal education programs. In a recent interview with Glenn Beck, Perry suggested that Texas should not have to comply with any of the conditions associated with the billions of dollars of federal education funds it gladly accepts.

But Perry’s blanket statement that the federal government doesn’t have any role in education whatsoever goes much further than his previous position that Texas should simply be able to suckle at the federal Department of Education’s teat. If the federal government truly has no role in education, that means millions of college students must lose their Pell Grants and federal student loans overnight, depriving many of them of their ability to pay for higher education altogether. And that’s just the lucky students who are still able to get accepted into college after their public schools lose all federal funding — funding that disproportionately benefits the most needy schools.

Sadly, federal education programs are hardly the only thing Perry wants to eliminate. For those of you keeping track at home, Perry has also called Social Security, Medicare, the Clean Air Act, Medicaid, SCHIP, federal bank regulation and federal consumer financial protections unconstitutional.

VIDEO: Striking Verizon Workers Provide Replacements With Safety Advice The Company Never Gave Them

Nearly 45,000 Verizon workers have been striking for nine days, as the company continues to demand huge worker concessions. Since these workers have gone on strike, the company has replaced them with temporary workers.

Now, a video has emerged of a group of striking Verizon workers assisting these scab workers with safety training that the company apparently did not provide them. In the following clip, a man from the International Brotherhood of Electric Workers (IBEW) Local 2321 Danvers Garage explains to some of the replacement workers how to safely get up an electric pole without being hurt. (Warning: The video contains some expletives):

ThinkProgress contacted IBEW Local 2321 Danvers Garage to interview them about the situation. Business Manager Ed Starr explained that, of the replacement workers being brought on the job, “a majority of contractors…they’re performing work in every capacity unsafely.” Starr said he knows of Verizon workers from sales departments, IT, and other desk jobs who are being asked to do work on outside infrastructure that they are not trained to work with. Upon request from the workers out of fear of retaliation, ThinkProgress will not name the workers in the video but can confirm they are from IBEW Local 2321 Danvers Garage.

LGBT

Gingrich Suggests Same-Sex Marriage Is Responsible For Economic Woes

Newt Gingrich seemed to blame same-sex marriage for the country’s economic woes, during an interview with Catholic Radio of San Diego last week. Responding to a question about the connection between the “secular” attack on “the family” and economic stagnation, Gingrich argued that “freedom of faith” – which he argued is being undermined by the push for marriage equality — is directly related to “free enterprise”:

HOST: We’re becoming increasingly secular, the family is under attack and economically we’re experiencing woes like we’ve never known in our history it seems. So what is the connection here?…

GINGRICH: You have to recognize that free enterprise is based on free people and … free people are based on faith. The very basis of our belief and freedom is that we believe we are endowed by our creator with certain unalienable rights. The very source of our strength is that we believe these are truths – not theories, not ideologies, not gimmicks, not political consultants, powerpoints – truths, and so there’s a core absolute overlap between free enterprise, freedom and freedom of faith. And if you don’t have freedom of faith in the end you’re not going to have free enterprise because there’s no moral force that defends and protects you.

Listen:

NEWS FLASH

Texas’ Employment-To-Population Ratio Has Plummeted On Perry’s Watch | Reuters’ Felix Salmon today highlighted data showing that Texas employment-to-population ratio — the percentage of the population that has a job — has plummeted under 2012 presidential contender Gov. Rick Perry’s (R-TX) watch. “According to the figures we have for 2011, 44.7% of the total US population has a job, compared to 43.5% of the Texas population. And Perry’s record is pretty bad, here: he inherited a ratio of more than 47% in Texas from George W Bush, and has presided over a steady decline ever since — including every year of the Bush presidency bar 2005,” Salmon noted.

Rick Perry And Sen. Grassley Promote Bizarre Myth About Non-Existent Tractor Regulation

Texas Gov. Rick Perry (R-TX) — who kicked off his campaigning for the GOP 2012 presidential nomination by saying Federal Reserve Chairman Ben Bernanke’s actions to boost the economy are “almost treasonous” — is spending a lot of his time criticizing federal regulations for supposedly stifling job creation. In Iowa this week, he related a story told to him by Sen. Chuck Grassley (R-IA) about tractor regulations forcing farmers to jump through hoops:

He then proceeded to cite what he termed an “obscene, crazy” regulation. “If you are a tractor driver, if you drive your tractor across a public road, you’re going to have to have a commercial driver’s license. Now how idiotic is that?”

Perry said he had talked on Sunday night with U.S. Sen. Chuck Grassley of Iowa at a GOP dinner in Waterloo. Perry told Grassley he had heard in the previous two days that the federal government was going to put such a regulation in place.

“Your own United States senator, sitting there at the table, said, ‘That’s right.’ And I said, ‘What were they thinking, senator?’ And he said, ‘They weren’t.’ So that is the issue at hand here,” Perry said.

Watch it:

The only problem is this regulation simply doesn’t exist. “We are absolutely not requiring farmers” to obtain commercial licenses, said U.S. Department Of Transportation spokeswoman Candice Tolliver. Mother Jones’ Kevin Drum spent some time getting to the bottom of this urban legend:

The [Federal Motor Carrier Safety Administration] has long had rules that defined most grain haulage as interstate commerce and designated farmers hauling shared crops as commercial operators. This was never a big deal because they had never enforced those rules and neither had anyone else. But then Illinois decided to start enforcing the letter of the law and Illinois farmers were unhappy. So now FMCSA is asking whether these regulations ever made sense in the first place. [...] Far from trying to implement a barrage of regulations on our nation’s farmers, FMCSA is apparently trying to stop state officials from implementing a barrage of regulations on our nation’s farmers.

Perry is either ignorant of the issue at stake here or is simply lying to score an anti-government political point. Grassley, in a newsletter issued on Friday, wrote that “common sense had appeared to prevail in the matter of proposed agricultural transportation regulations.”

GOP Super Committee Member Pledges Not To ‘Chop’ Entitlement Benefits Or Raise The Retirement Age

Rep. Fred Upton (R-MI)

Speaker John Boehner (R-OH) surprised many when he appointed a Republican widely perceived as a moderate, Rep. Fred Upton (MI), to serve as one of six GOP members on the congressional “super committee” tasked with finding $1.5 trillion in deficit savings by November. Conservatives are worried that Upton will not toe the GOP’s hardline stance against taxes because he’s expressed a willingness to raise revenues by eliminating tax loopholes.

Yesterday at a public forum in Kalamazoo, Michigan, Upton gave another glimmer of hope that he would be willing to divorce himself from Tea Party dogma to do what’s right. Upton came out as a strong defender of entitlement programs, and vowed to protect current beneficiaries in the super committee’s deliberations:

UPTON: It’s critical…for people that are benefiting today from Medicare and Social Security, that they do not see benefit reductions. It’s awfully hard to tell someone…who might be 82 that they’ve got to go back to work because their benefits are going to be chopped. That’s not going to happen. We’re not going to let that happen.

Watch it:

In response to audience questions, he also said he doesn’t support raising the retirement age for Social Security over 67 (where it is for workers born after 1960). Upton’s unequivocal support for preserving entitlement programs, at least for today’s seniors, is encouraging when contrasted with the statements of his fellow GOP committee members who have called entitlements “cruel Ponzi schemes.” Like his fellow Republicans, however, Upton did not rule out cuts for future beneficiaries.

Upton also reiterated his support for ending corporate tax dodging by reforming the tax code. “I’m not afraid of looking at tax loopholes,” he said. “I don’t think anybody was happy to see that GE didn’t pay any taxes.”

Some liberals have voiced their concern that Upton is nothing but a conservative in moderate’s clothing who will ultimately go along with his party’s anti-entitlement agenda on the committee. Michigan constituents — and Americans across the country — should certainly keep a close eye on Upton to see if he keeps his promise to them to protect entitlements.

NEWS FLASH

Anti-Tax Club For Growth, Mega-Banks Top List Of Donors To Super Committee Members | According to a study by Maplight.org, the virulently anti-tax Club for Growth has donated more to the members of the fiscal super committee that was created by the debt ceiling deal than any other organization. Also among the top 10 donors to the super committee are mega-banks Goldman Sachs, Citigroup, JPMorgan Chase, and Bank of America. (HT: The Hill’s Ballot Box)

Yglesias

Rick Perry: Not Just Rude And Inappropriate, But Wrong About An Issue Of Enormous Economic Importance

The Rick Perry remarks that finally have Washington talking monetary policy can be found below. But to make a long story short, asked a question about Federal Reserve Chairman Ben Bernanke, Perry said “If this guy prints more money between now and the election, I dunno what y’all would do to him in Iowa but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treasonous in my opinion.”

I don’t really think reporters should take Perry’s views on treason or who does and doesn’t deserve to be killed all that seriously. After all, Perry has a record as an advocate of secession from the United States and as an executer of an innocent man. So if you want to do a story about Perry’s reckless ideas about patriotism or odd notions about when it’s appropriate to kill someone, I would suggest those incidents as offering more fruitful lines of inquiry. There’s a real issue here about policy substance.

Now “printing money,” if you know what you’re talking about, is what the Fed does all the time. See, for example, the steady increase in the monetary base throughout the Reagan years. The basic issue here is that people use dollars to conduct economic activity. Over time, the US population grows. So does the US economy. So does world population and the world economy. So people want more dollars. And a responsible central banker brings them into being. Lots of people, admittedly, don’t understand this. It’s a bit obscure and doesn’t get discussed much. And, frankly, it’s fine if you didn’t know that the monetary base just generally increases over time. But if you don’t know this, then when asked questions about it you should probably say “I don’t know” instead of saying something totally wrong. Compare Perry’s conduct with that of Mitt Romney who to his credit has always tried to avoid getting sucked into the populist right’s cesspool of monetary madness.

But now back to Perry. One thing he does seem to understand in these remarks is that if the Federal Reserve were to engage in expansionary monetary policy over the next 18 months, that would increase the economic growth rate. My view is that an increase in the economic growth rate would be a good thing, and that therefore the Fed should do this. Perry’s view appears to be that an increase in the economic growth rate would help Barack Obama’s re-election bid and therefore any steps to make it happen would be borderline treason. That, to me, seems like news. Perry is running on Texas’ impressive record of job creation, but he’s an avowed opponent of creating more jobs nationwide.

With Government Job Losses Slowing The Recovery, Romney Promises To Lay Off Even More

ThinkProgress filed this report from a campaign event in Litchfield, New Hampshire.

Former Gov. Mitt Romney (R-MA) continued to paint himself as the Republican Party’s best “jobs candidate” today in New Hampshire, telling crowds that President Obama’s policies have stalled economic recovery and that he had the experience necessary to create jobs and turn the economy around.

In doing so, however, he outlined a policy that would have — and is having — the opposite effect. Romney promised that, as president, he would cut federal workers’ pay and slash the number of federal government jobs:

ROMNEY: Federal employees, we’ve got too many of them, and they’re paid too much. In many cases, they do a good job, we respect the work that they do, it’s important work that they do. We just have too many.

Watch it:

Government workers make for politically expedient targets, particularly in rough economic times. But Romney’s argument that federal workers are paid more than private sector workers distorts the facts. At the top end of the pay scale, federal workers are often paid less than their private sector counterparts, so much so that the government has “found it increasingly more difficult to attract and retain high-skill workers.” If Romney wanted to bring federal pay in line with the private sector as he suggested, he’d have to provide many government workers a raise.

Romney’s claims that there are “too many” government jobs, meanwhile, ignores the state of the American jobs crisis. While the private sector continues to grow (albeit slowly), federal, state, and local governments have shed more than 500,000 jobs in the last two years, negating the positive effects of private sector growth and dragging down the economic recovery. If public sector employment was at its 2009 level, the unemployment rate would be 8.4 percent, considerably lower than the 9.1 percent it stands at now.

Romney, who constantly reminds voters of his private sector experience, may not view government workers as participants in what he calls the “real economy.” But as Matt Yglesias notes, the effects of government job losses mirror those of private sector losses, as “the sharply reduced incomes of the former teachers and whatnot lead to them spending less in their local communities,” thus slowing economic growth.

Econ 101: August 16, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • President Obama has reportedly “directed a small team of advisers to develop a proposal that would keep the government playing a major role in the nation’s mortgage market, extending a federal loan subsidy for most home buyers.” [Washington Post]
  • According to the latest Federal Reserve data, “banks relaxed their lending standards further during recent months as competition intensified among financial institutions and demand increased for many types of loans.” [Wall Street Journal]
  • Starbucks CEO Howard Schultz “urged other CEOs to boycott donating to U.S. political campaigns to encourage leaders to solve the nation’s growing budget deficit.” [Bloomberg]
  • U.S. regulators who were given new powers to dismantle “too-big-to-fail” banks under the Dodd-Frank financial reform law “are still working to draw up so-called living wills — a central component of the toolkit needed to prevent future bailouts.” [Bloomberg]
  • According to the latest European Union data, GDP for the 17 nations that use the euro grew at just 0.2 percent in the second quarter. [CNN Money]
  • “The national credit card delinquency rate, or rate of payments 90 days or more past due, fell to 0.60 percent in the second quarter, down from 0.92 percent a year ago,” which is the lowest level since 1994. [Associated Press]
  • Regulators at the Securities and Exchange Commission “are checking to ensure that Standard & Poor’s followed all of its policies leading up to its downgrade of long-term U.S. debt.” [Reuters]
  • President Obama today “is set to announce several new initiatives meant to spark job creation in rural America without forcing the administration to get the backing of Congress.” [The Hill]
  • Summer employment for teenagers “increased 13.2 percent compared with last year’s figures,” according to a new report. [The Hill]
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