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Anti-Federal Spending Gov. Rick Scott Wants To Accept One Federal Grant So That He Can Apply For Another

Gov. Rick Scott (R-FL) has made his opposition to federal funding — for everything from the Affordable Care Act to high-speed rail — extremely well known. As Igor Volsky has noted, Scott’s opposition to federal grants makes no sense, but that hasn’t stopped him from refusing them while claiming that they “ultimately create obligations that our taxpayers can’t afford.”

However, Scott may be slowly changing his mind when it comes to federal funding. As the Orlando Sentinel noted, Scott may direct the Florida legislature to accept funding from the Affordable Care Act that it had previously rejected in order to free Florida up to compete in the latest round of the Education Department’s Race to the Top program. The current round of RTTT allows states to apply for funding to enhance early childhood education programs:

Florida plans to compete for $100 million in the federal government’s latest Race to the Top program, assuming the Florida Legislature is willing to accept other federal money it had previously rejected.

To apply for the Race to the Top Early Learning Challenge, which is designed to improve the care and education of young children, states must be taking part in a federal home-visiting program meant to prevent child abuse.

Florida won an earlier round of the Race to the Top program that it entered before Scott took office, earning itself $700 million, which Scott at the time made some noise about rejecting.

Meanwhile, the Sunshine State could undeniably benefit from additional investments in early childhood education. According to the National Institute for Early Education Research’s State of Preschool 2010 report, “Florida has one of the nation’s highest percentages of 4-year-olds in preschool programs…but state and local spending on those programs is among the worst in the nation.” “The problem in Florida isn’t quantity, it’s quality,” said W. Steven Barnett, co-director of the National Institute for Early Education Research.

Scott has already made it quite clear that his opposition to federal funding is much more about politics than policy. In this case, if Scott is willing to look past political games for just a moment, Florida’s children may see the benefit.

Climate Progress

Solar Stunner: America is a $1.9 Billion Exporter of Solar Products

With all the stories about China dominating the solar photovoltaics (PV) manufacturing sector, you might not think that America is a net exporter of solar products. But it is — to the tune of $1.8 billion. That’s a $1 billion increase over net exports documented in the solar sector last year.

In fact, a report released this morning from GTM Research and the Solar Energy Industries Association found that the U.S. has a $247 million trade surplus with China.

U.S. imports in 2010 were estimated at $1.4 billion, while exports were estimated to be between $1.7 billion – $2.0 billion based on the availability of data for capital equipment sales. This made the U.S. a net exporter of solar goods to China by $247 million to $539 million. Imports came predominantly from modules ($1.2 billion), while exports were driven by capital equipment ($708 million to $1 billion) and polysilicon ($873 million).

Solar isn’t just about the module. When looking at polysilicon production, equipment for manufacturing lines, power electronics, solar hot water tanks, and any number of other domestically-produced products, the U.S. actually offers a good-sized contribution to the global market.

The 2011 Solar Energy Trade Assessment is a follow up from last year’s report, which found U.S. net exports in 2009 were worth $723 million.

The $1 billion surge in net exports came during a year when the U.S. solar market grew by over 100%. Due to the successful Treasury Grant Program and Loan Guarantee Program that made it easier for developers and manufacturers to finance facilities, the solar sector grew faster than ever before.

And all that solar — particularly solar PV — brings immense value to the domestic economy.

Read more

Newark Mayor Cory Booker: Hurricane Is A Wake Up Call To Improve America’s Infrastructure

Newark Mayor Cory Booker (D)

Hurricane Irene, which hit the east coast of the United States over the weekend, “left an estimated $7 billion to $13 billion of damage in its wake — without even accounting for economic losses.” Though the damage was not quite as extensive as some original estimates, the Federal Emergency Management Agency has already had to divert funding from other disaster relief in order to begin the process of helping those affected by the storm.

New Jersey alone may have suffered billions of dollars in damages. On NBC’s Meet The Press yesterday, Cory Booker, the mayor of Newark, New Jersey, said the hurricane should act as a wake-up call to policymakers to upgrade the nation’s deteriorating infrastructure. “We’re seeing, in the city of Newark, lots of flooding and problems because our infrastructure is getting very aged, and we haven’t had the kind of investment or the resources to put the investment into it to keep our infrastructure strong and safe,” Booker said:

GREGORY: You know, Mayor, I want to ask you something I asked Governor Christie as well, which I think is an important bigger question out of all of this, which is how prepared are we as a country, not just the city of Newark or the state of New Jersey, but as a country, to deal with disasters of any magnitude? On a week when you had Hurricane Irene, on a week when you also had an earthquake that is so rare along the East Coast?

BOOKER: Well, first of all, I’m proud of my president, I’m proud of my governor for both jumping in and being very, very pre-cautious by calling a state of emergency. It’s much better to be prepared for an emergency and not have one than have an emergency and not be prepared. But to your point, I’m very concerned in our country that we have not been investing in infrastructure like we need to. We’re seeing, in the city of Newark, lots of flooding and problems because our infrastructure is getting very aged, and we haven’t had the kind of investment or the resources to put the investment into it to keep our infrastructure strong and safe. And I know this is a problem from around the country. I’ve talked to many mayors. We need to begin to understand that investments in infrastructure is actually going to save us money over the long term. It’s going to keep people safe and it’s actually going to help our economy as well.

Watch it:

According to the American Society of Civil Engineers, America’s infrastructure needs a five-year, $2.2 trillion investment in order to be brought into adequate shape. When it comes to flood prevention, the Engineers note that “more than 85% of the nation’s estimated 100,000 miles of levees are locally owned and maintained” and that “the reliability of many of these levees is unknown.”

It would take an investment of more than $100 billion to bring America’s levees up to the proper standard. House Republicans, however, are trying to enact cuts to infrastructure spending, while House Majority Leader Eric Cantor (R-VA) said any federal aid sent to areas affected by the hurricane should be offset with spending cuts elsewhere in the federal budget. (HT: Politico Live)

Thune: Top Message I Got From Town Halls Is ‘Don’t Cut My Social Security And Medicare’

As Republican lawmakers held constituent meetings in their home districts over the August recess, they were often confronted for taking hard-right positions on everything from taxes to entitlement reform, sending a message that at least Sen. John Thune (R-SD) seems to have noticed. Thune said the main things he heard from constitutes was frustration over Congress’ inability to work together and opposition to cuts to social safety net programs, the Argus Leader reports:

“Do something,” Thune said Wednesday after a town hall meeting at the Brandon Municipal Golf Course. “Why can’t you work together? There’s a high level of frustration with the inaction, and there’s a lack of confidence in the country and the economy. They want to see us get something done.”

That’s one of the major insights he’ll take back to Washington, D.C. after the August recess, he said.

It ranks behind “don’t cut my Social Security and Medicare. I’ve heard that quite a bit,” Thune said.

It’s not surprising that Americans are voicing their concern about cuts to Medicare and Social Security, considering that the programs are overwhelmingly popular and that Republicans have threatened to cut them, most notably with the House’s passage of Budget Committee Chairman Paul Ryan’s (R-WI) Medicare-replacement budget. Numerous polls show Americans oppose cutting these social safety net programs as means to rein in the deficit, while 63 percent say they want to see revenue raised through increased taxes on the wealthy or with a millionaires surtax. Meanwhile, Americans are frustrated with Republican lawmakers’ intransigence grinding Congress to halt, as Thune notes.

Thune’s comments are particularly noteworthy in light of the fact that Texas Gov. Rick Perry (R) has made criticism of Social Security — which he has called unconstitutional — a central part of his campaign. (HT: Rachel Weiner)

Yglesias

Christine Lagarde Calls For Fiscal & Monetary Stimulus, Balanced Debt Reduction & Mortgage Relief

Reading former French Finance Minister Christine Lagarde’s maiden speech as Managing Director of the International Monetary Fund is a valuable reminder that the global policy elite can always benefit from some fresh blood. She very sensibly argues that the problem of the global crisis is an excess of overall debt and not some peculiarity of sovereign borrowing. She correctly argues that “[m]onetary policy also should remain highly accommodative, as the risk of recession outweighs the risk of inflation” and urges policymakers to engage in growth-oriented fiscal policy, trimming unsustainable long-term commitments rather than strangling short-term growth with contraction.

Here she is specifically on the US, arguing for action on two fronts:

First—the nexus of fiscal consolidation and growth. At first blush, these challenges seem contradictory. But they are actually mutually reinforcing. Credible decisions on future consolidation—involving both revenue and expenditure—create space for policies that support growth and jobs today. At the same time, growth is necessary for fiscal credibility—after all, who will believe that commitments to cut spending can survive a lengthy stagnation with prolonged high unemployment and social dissatisfaction?

Second—halting the downward spiral of foreclosures, falling house prices and deteriorating household spending. This could involve more aggressive principal reduction programs for homeowners, stronger intervention by the government housing finance agencies, or steps to help homeowners take advantage of the low interest rate environment.

This is all done in the mild language of an international agency. But the first front is a massive rebuke to the prevailing dogma among American conservatives, which argues for immediate fiscal austerity while demanding that adjustment take place 100 percent on the spending side. The second front is a rebuke not only to do-nothing conservatives, but to the climate of lassitude that seems to exist in the FHFA and sundry other warrens of the executive branch. The IMF is generally viewed negatively by progressives as a legacy of some things that happened in the 1990s, but throughout the Lesser Depression, its staff has done good work under the leadership of Dominique Strauss-Kahn and Olivier Blanchard and Lagarde seems strongly inclined to continue in that direction without the baggage of sexual assault charges or a forecast presidential campaign.

House GOP’s Faux ‘Jobs Agenda’ Continues Republican Assault On Organized Labor

The Washington Post noted today that House Republicans “are planning votes for almost every week this fall in an effort to repeal environmental and labor requirements on business that they say have hampered job growth.” This effort is part of the GOP’s supposed jobs agenda, which, as Center for American Progress economist Adam Hersh wrote last week, is much more myth than reality-based.

“Across the board, the Republican ‘jobs agenda’ reduces demand, undermines middle class families, blocks development of renewable energy industries, and recreates the possibility of future financial crises,” Hersh wrote. And the GOP’s “jobs agenda” also continues the Republican assault on organized labor, with two of the “Top 10 Job-Destroying Regulations” identified in a memo by House Majority Leader Eric Cantor (R-VA) targeting rules having to do with unionization:

NLRB’s Boeing Ruling (Week of September 12): On April 20, the National Labor Relations Board (NLRB) issued a complaint against The Boeing Company for the alleged transfer of an assembly line from Washington to South Carolina. Yet, not one union employee at Boeing’s Puget Sound facility has lost his or her job as a result of the proposed South Carolina plant. Still, the NLRB is pursuing a “restoration order” against Boeing that would cost South Carolina thousands of jobs and deter future investment in the United States. H.R. 2587, the Protecting Jobs From Government Interference Act, sponsored by Rep. Tim Scott (SC), would take the common sense step of preventing the NLRB from restricting where an employer can create jobs in the United States. [...]

NLRB’s Ambush Elections (Winter): This summer, the NLRB issued a notice of proposed rulemaking that could significantly alter current union representation election procedures, giving both employers and employees little time to react to union formations in the future. The result will increase labor costs and uncertainty for nearly all private employers in the U.S. The House will soon consider legislation that will bring common sense to union organizing procedures to protect the interests of both employers and their workers.

It’s clear from the inclusion of these two “regulations” on the list that the GOP is more interested in further undermining the ability of workers to organize than in doing anything for job creation. The first, for instance, isn’t so much a regulation as a federal agency applying a law — in this case, the National Labor Relations Act. As Dalia Lithwick wrote in Slate, “There is ample precedent for the argument that threatening to move facilities because of strikes is illegal under the National Labor Relations Act. And certainly the NLRB might reasonably have taken a Boeing executive at his word when he told the Seattle Times (on video!) that this was precisely what motivated the relocation.” Enabling companies to move facilities whenever workers threaten a strike won’t boost job creation, but merely ensure that workers have one fewer tool to use against recalcitrant employers.

The “ambush elections” regulation, meanwhile, merely ensures that employers cannot endlessly delay union organizing elections. At the moment, “35 percent of all union elections are called off in the face of endless delays and often illegal employer opposition according to research by John-Paul Ferguson of Stanford Business School.” The regulation helps to ensure that workers who want to organize have a fairer shot at doing so.

Neither of these GOP measures will do a thing for job creation, but they will push unionization rates even lower, even though falling rates of unionization are correlated with plummeting middle-class incomes and skyrocketing income inequality.

Update

Igor Volsky looks at Cantor’s regulation list and its effect on health care reform.

Bachmann Joins Perry, Endorses Even Bigger Corporate Tax Holiday Than Corporations Asked For

During his presidential campaign kickoff tour of New Hampshire, Texas Gov. Rick Perry (R) signaled potential support for a temporary holiday that would allow corporations to repatriate offshore funds at a zero percent tax rate, far lower than the current 35 percent rate, under the guise of job creation. Reducing the rate to zero percent would grant the corporations a much larger tax giveaway than even they have asked for, as WinAmerica — a group of corporations lobbying for the holiday — has asked only for a “reduction” in the rate, not its complete elimination.

Not one to get outflanked on right-wing tax policy, Minnesota Rep. Michele Bachmann (R) picked up Perry’s mantle in Florida this weekend, telling attendees at one event that temporarily reducing the repatriation tax rate to zero was “the easiest thing the president could do” to immediately spur job creation, as the New York Times reported:

“American companies have sitting in the bank over a trillion dollars,” Mrs. Bachmann said. “If we had a zero rate of repatriation, by the afternoon that trillion dollars would be back in the United States. Do you have any idea of how many jobs would be created?

If Congress’ last attempt at job creation via a repatriation holiday is any indication, however, the answer the Bachmann’s question is likely “none.” A Republican-led Congress pushed through a repatriation holiday in 2004 only to see it fail miserably, as corporations used the repatriated funds not for job creation but to pay dividends and buy stock. The corporations that benefited most from the holiday actually cut thousands of jobs in its aftermath, then stashed even more money overseas under the assumption Congress would approve similar holidays in the future.

Kristin Forbes, a professor at the Massachusetts Institute of Technology and a member of former President Bush’s council of economic advisers, said the holiday “didn’t accomplish it’s stated goals of bringing jobs and investment to the U.S.”

The corporations behind WinAmerica, meanwhile, continue to pay low effective tax rates and shield the public from information about how many jobs they have shipped overseas, all while they push a policy that would cost American taxpayers more $80 billion over the next decade. By endorsing a rate even lower than what the corporations are asking for, Bachmann is ensuring that the price tag on a policy that won’t create jobs would only be more expensive.

CHARTS: How A Do-Nothing Congress Can Almost Eliminate The Deficit

Center for American Progress Director for Tax and Budget Policy Michael Linden notes that “if Congress does not pass any new fiscal policies between now and January 2013, the federal budget deficit will dwindle to just 1.6 percent of gross domestic product — the largest measure of our economy — by 2014, and continue dropping. Similarly, debt as a share of GDP will peak at 73 percent in 2013 and then decline down to 61 percent by 2021.”

The decrease would be due to the expiration of the Bush tax cuts, the triggered spending cuts that were included in the debt ceiling deal going into effect, as well as the enactment of various policies that Congress always puts off, like the alternative minimum tax.

Perry Says Social Security Is No Longer A ‘Retirement Program’ But Simply A ‘Tax’

ThinkProgress filed this report from Ottumwa, Iowa.

During a campaign stop in Ottumwa, Iowa this past weekend, Texas Gov. Rick Perry (R) continued his assault on Social Security, saying it was no longer a “retirement program” but has just “turned into a tax.”

Perry is certainly no fan of Social Security. In his November 2010 book Fed Up!, he wrote that the program “toss[es] aside any respect for our founding principles.” Social Security exists, according to Perry, “at the expense of respect for the Constitution and limited government.” With views like these, it’s hardly surprising that Perry believes Social Security is unconstitutional.

Speaking at an Ottumwa coffee shop on Saturday, Perry redoubled his attack on Social Security. When a conservative voter asked Perry why the current administration was promoting Social Security as an entitlement program — a view that all but the most right-wing people hold — the Texas governor went a step further. Perry told the woman Social Security “was a retirement program” when it began, but “it’s turned into a tax now.”

QUESTIONER: This administration is promoting Social Security as an entitlement program.

PERRY: Who’s that?

QUESTIONER: The current administration. Especially lately I’ve noticed on TV that’s what they’re promoting it as. The question is, that what it originally started out to be is not an entitlement program, Americans who are working, putting money into it…

PERRY: It was a retirement program, and actually it’s turned into a tax now.

Watch it:

Perry went on to tell the crowd that Social Security is a “Ponzi scheme” and a “monstrous lie.” Watch video of the exchange here.

Of course, Perry completely ignores that Social Security has been, arguably, the most important social program that the country has implemented, causing poverty amongst seniors to plummet. Without Social Security benefits, almost half of Americans over the age of 65 would be living in poverty; with Social Security, fewer than 10 percent of seniors are actually living below the poverty line. Social Security is especially important for Hispanic, African-American, and female retirees.

Later that day, ThinkProgress asked Perry if conservatives should be worried that he’s tempering his hardline views on Social Security now that he’s running for president. Perry replied that he hasn’t “backed off anything” in his book, despite efforts from his campaign to walk back the governor’s view that Social Security is unconstitutional.

A recent Pew Research Center poll found that three in five Americans don’t want to see Social Security benefits cut, including a plurality of Republicans.

Econ 101: August 29, 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.

  • Hurricane Irene’s battering of the East Coast “left an estimated $7 billion to $13 billion of damage in its wake — without even accounting for economic losses.” [ABC News]
  • Destruction from the hurricane “could cost U.S. state and local governments billions of dollars in damages, but funds from the federal government might ultimately cover much of this expense.” [Reuters]
  • President Obama today plans to nominate Princeton University’s Alan Krueger, a labor economist, as the new chairman of the White House Council of Economic Advisers. [Wall Street Journal]
  • House Republicans “are planning votes for almost every week this fall in an effort to repeal environmental and labor requirements on business that they say have hampered job growth.” [Washington Post]

  • House Republicans are also reportedly considering releasing a tax reform package this fall, but “no specifics have been locked in yet.” [Daily Caller]
  • America’s corporations “racked up big profits in the first half of the year even as economic growth slowed to a crawl.” However, “corporations have already cut jobs and boosted productivity since the downturn, leaving few new levers to pull to keep earnings up in case of a protracted [economic] slowdown.” [Wall Street Journal]
  • The nation’s biggest banks “are cutting jobs, consolidating businesses and scrambling for new sources of income in anticipation of a fundamentally altered financial landscape requiring leaner operations.” [New York Times]
  • In Jackson Hole, Wyoming, “the heads of the U.S. Federal Reserve, IMF and OECD stepped up pressure on political leaders on both sides of the Atlantic to shake off their inertia and tackle urgent economic problems.” [Reuters]
  • National Labor Relations Board Chairwoman Wilma Liebman’s term ends on Saturday, while NLRB member Craig Becker’s recess appointment ends at the end of the year, and “without new people to fill those seats, the five-member board will be down to just two – not enough to have the legal authority to issue decisions, due to a 2010 Supreme Court ruling.” [The Hill]

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