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Rep. Steve King: Unemployment Insurance Has Created ‘A Nation Of Slackers’

Tea Party Rep. Steve King (R-IA) took to the House floor yesterday to give a diatribe against large swaths of of the social safety net, from food stamps to heating fuel subsidies, but reserved particular disdain for unemployment insurance, which he dismissed as “welfare for people that won’t work.” Via Political Correction:

KING: The United States of America borrows money and hands it to people and tells them, you don’t have to work for this. You don’t have to produce anything for this. We just want you to spend it. [...]

The former speaker of the House, Speaker Pelosi, has consistently said that unemployment checks are one of those reliable and immediate forms of economy recovery. [...] The 80 million Americans that are of working age but are simply not in the workforce need to be put to work. We can’t have a nation of slackers and then have me have to sit in the Judiciary Committee listening to them argue that there’s work that Americans won’t do, so we have to import people to do the work that Americans won’t do, and borrow money to pay the welfare for people that won’t work. That is a foolish thing for a nation to do. We’ve gotta get this country back to work and get those people out of the slacker rolls and onto the employed rolls.

Watch it:

King’s belief that people collecting unemployment checks are merely lazy is startingly common among conservatives, but it is as wrong as it is offensive to the million of Americans who are out of work by no choice of their own. In reality, there are 4.32 unemployed people for every job opening in the country, so even if every opening was filled, there would still be millions of people lacking employment.

Moreover, unemployment benefits are hardly generous, require beneficiaries to be actively searching for work, and run out after a certain period of time, so it’s unlikely someone would chose to remain unemployed. In fact, research by the San Francisco Federal Reserve has found that workers who qualify for unemployment benefits stay unemployed just 1.6 weeks longer than those who do not qualify for such benefits.

King calling unemployed Americans “slackers” is almost as bad as Rep. Blake Farenthold (R-TX) compared the jobless to alcoholics and drug addicts.

Ed Rendell: If America Stops Investing In Infrastructure, ‘We Are Destined To Become A Second-Rate Power’

President Obama’s recent jobs plan has reignited a fight over infrastructure investment, a priority for Democrats who see investing in improvement projects as a way to address both the nation’s crumbling infrastructure and high unemployment. Republicans have also claimed to support infrastructure improvement, with Senate Minority Leader Mitch McConnell (R-KY) saying it was important to bring the country’s roads and bridges “up to 21st century standards.”

Despite McConnell’s rhetoric, Republicans have steadfastly opposed actual attempts to bring America’s infrastructure to 21st century standards, since that would require actually spending money. Former Pennsylvania Gov. Ed Rendell (D) blasted the GOP’s opposition to infrastructure investment under the guise of saving money today, saying if the U.S. didn’t invest in its crumbling roads, its failing bridges, and other areas of infrastructure development, the country is “destined to become a second-rate nation”:

RENDELL: Infrastructure is important in everything that we do. The World Economic Forum, which rated our infrastructure best in the world as early as 2005, has now placed us 15th. In air transport infrastructure, we’re 32nd behind countries like Panama and Malaysia. In port infrastructure, so important to our economy, we’re 18th. In rail infrastructure, we’re 22nd. That’s embarrassing. This country used the be the greatest country in the world, and I believe it still is. But we were the greatest country in the world because we met our challenges. We knew what we had to do. We didn’t worry about what it was going to cost, we worried about how it was going to benefit our people. [...]

Yes, you spend money to build the infrastructure, to make it safe, to improve the quality of our lives, to increase our economic competitiveness. Stop doing it, and America’s destined to become a second-rate power.

Watch it:

Republicans got an example of exactly what Rendell is talking about this week, when the 50-year-old bridge Sherman Minton Bridge spanning the Ohio River between Louisville, Kentucky and New Albany, Indiana closed because of a crack in its structure. The closure is costing both private businesses and the government, as local economies suffer from lapses in productivity and the states divert funds from other programs to fix the bridge.

Putting off investments like one that could have prevented the Sherman Minton’s closure doesn’t save the country money. The longer Republicans continue to prevent the types of meaningful infrastructure investments the country needs, the more expensive it promises those projects will become, and the farther behind the rest of the world the U.S. will fall.

Take action and tell Congress it’s time to rebuild America.

Education

Republican Education Bills Appease The Right But Do Little To Help Struggling Students

Our guest blogger is Jeremy Ayers, Senior Education Policy Analyst at the Center for American Progress Action Fund.

Sen. Lamar Alexander (R-TN)

Yesterday a group of four Republican Senators, led by Sen. Lamar Alexander (R-TN), introduced a package of bills to reauthorize the No Child Left Behind Act, a law that certainly needs revising. But the Republican rewrite would take away the requirement of states and districts to act to improve struggling schools. And partisan bills like these only make it harder to revise the law in a bipartisan way, something Alexander said he was committed to doing earlier this year.

The Republican bills would, together, do four things: fund the expansion of successful charter schools, consolidate various programs into state block grants, create a differential pay program for teachers, and scale back the accountability of states and school districts. A more detailed overview can be found here. But a few obvious problems stand out.

First, turning federal programs into block grants may seem attractive to those on the far right who think anything that Washington had its hand in is tainted. But it’s poor stewardship of taxpayer money to have zero accountability for how federal money is spent and to have no focus on disadvantaged students, the main federal role in education.

Secondly, if Republicans think that performance-based pay programs (and block grants) alone will improve the teacher workforce, they’re naïve. It takes far more than that, like better training, support in the classroom, and policies that focus on teachers’ effectiveness with students.

Thirdly, accountability is a good thing; it holds states’ and districts’ feet to the fire for improving student progress. The Republican package would only focus on the lowest-performing 5 percent of schools in each state. It would let states and districts do whatever they want — including nothing or very little — for the remaining 95 percent. That is simply insufficient in today’s economy when American students compete with highly-educated students from around the globe in an increasingly competitive job market.

Following the debt limit crisis, the public has witnessed a demoralizing breakdown in bipartisan governing. It is unfortunate that these bills only add fuel to the fire. Rather than reaching an honest hand across the aisle, these Senators put up a partisan roadblock to progress.

No wonder Secretary of Education Arne Duncan has said he’ll soon offer states relief from the broken current law in exchange for engaging in real reforms to improve our nation’s schools. That kind of action offers real hope to struggling schools and students that the federal government is working to make their lives better. Republicans need to stop playing politics with America’s children and get back to the negotiating table.

Perry Once Bashed Financial Industry For Being ‘Run On Greed,’ Now Wants To Repeal Wall St. Reform

As part of his critique of President Obama’s policies, Gov. Rick Perry (R) has been saying that the administration is not doing enough to “free up” Wall Street. During a campaign stop today, Perry said that one of the “first things we need to do” is repeal the Dodd-Frank financial reform law, because new laws aren’t needed to rein in the “few bad actors” on Wall Street:

So freeing up the industry, whether you’re a bank or whether you’re a credit union, freeing them up from overregulation. I think overregulation of all of those industries is obviously a part of the problem. And repealing that Dodd-Frank act is one of the first things that we need to do…Do we need to have protections in place? Of course we do. But I would suggest to you that we have those protections in place today for the few bad actors that might be out there in the world. But the overregulation from Washington D.C., this one-size-fits-all, has to end.

Watch it:

But Perry didn’t always feel this way. In fact, in 2008, with the financial system cratering, Perry criticized the banking industry, saying that it “has too often been run on greed“:

“My concern is that Washington is so inept at addressing these issues that are important to Americans, whether it’s securing our borders or whether it’s securing our financial future,” Perry said. “Washington has been absolutely abject failures at this.”

Perry stopped short of endorsing any particular approach to the U.S. financial meltdown and warned against any measures that would allow shady business practices to continue.

“We’re sick and tired of watching Washington bicker with each other while financial markets are roiled,” he said. “The other side of that is we’re certainly not interested in Washington bailing out a bunch of irresponsible mortgage brokers in an industry that has too often been run on greed.”

Despite this stated opposition to bailouts, shortly after the Troubled Asset Relief Program (TARP) failed to pass the House on its initial vote, Perry sent a letter to Congress in his capacity as head of the Republican Governors Association that read “We strongly urge Congress to leave partisanship at the door and pass an economic recovery package. It is time for Washington, D.C. to step up, be responsible, an do what’s in the best interest of American taxpayers and our economy.”

Perry now denies that the letter expressed support of TARP, but its hard to read it otherwise. At a campaign stop today, Perry replied “no, maam,” to a woman who asked if he supported TARP.

Gov. McDonnell: When Perry Says ‘Ponzi Scheme’ He Means ‘Preserve This Valuable Safety Program’

Gov. Bob McDonnell (R-VA), Rick Perry's translator

Gov. Rick Perry (R-TX) has been taking a lot of well-deserved flak for deriding Social Security as a “Ponzi scheme.” But during Monday night’s GOP presidential primary debate, Perry doubled down on his position, saying, “this is a broken system. It has been called a Ponzi scheme by many people long before me.”

Even Perry’s supporters are clearly uncomfortable with this characterization. Gov. Bobby Jindal (R-LA) endorsed Perry this week, but when asked repeatedly, refused to agree with Perry that Social Security is a Ponzi scheme. “It doesn’t matter what you call it, what’s most important is the substantive point he was making,” Jindal claimed.

Yesterday, Gov. Bob McDonnell (R-VA) — who succeeded Perry as head of the Republican Governors’ Association and has been floated as a potential Republican vice presidential candidate — told a local reporter that, when Perry says “Ponzi scheme,” what he is “actually trying to say” is that we should “preserve this valuable safety program for our senior citizens for our future generations”:

Q: What do you think about him calling Social Security a Ponzi scheme?

MCDONNELL: I think what he was trying to say and what all the Republicans were trying to say is to be honest with the people and say if you want to preserve this valuable safety program for our senior citizens for our future generations, we’ve go to reform it.

Watch it:

Social Security is indeed a valuable program. Last year alone, it kept 14 million seniors out of poverty.

Earlier this week, Perry wrote an op-ed on Social Security without using his favorite terms for the program: “Ponzi scheme” and “monstrous lie.” And evidently, he needs to start bringing McDonnell to his campaign events in order to translate his words into something that the American public doesn’t find terrifying.

Security

The Pentagon’s Latest Misleading Argument To Protect Its Budget: Cuts Will Lead To Higher Unemployment

Defense Secretary Leon Panetta has been trying to do everything he can to convince the deficit reduction super committee to spare military spending when it decides how to arrive at $1.5 trillion in cuts. He began last month by using fearmongering techniques, claiming that $1 trillion in military spending cuts over the next decade would be “devastating” and “dangerous.” However, Panetta has yet to offer any specifics on these claims (in fact, experts have identified how the U.S. can cut $1 trillion and still maintain military superiority). Panetta’s allies soon piled on, defending the status quo spending with similar fearmongering and false and misleading arguments.

Now, the Defense Department is turning to another disingenuous argument: jobs. Reuters reports:

Defense Secretary Leon Panetta is warning members of Congress that threatened defense cuts in the order of $1 trillion over the next decade would add 1 percentage point to the U.S. unemployment rate. [...]

“What we’re talking about there is in the neighborhood of about a trillion dollars of defense cuts,” Pentagon spokesman George Little told reporters flying with Panetta to Washington after talks with Australia in San Francisco.

We believe that would result in job cuts that would add potentially 1 (percentage point) to the national unemployment rate.”

But the reality is that, diverting federal dollars to defense and other military spending actually results in a net job-loss. The War Costs project points to a 2009 study from economics professors at the University of Massachusetts to make that case. And this week, one of the study’s co-authors noted that “the relevant measure is how many jobs [military spending] creates per dollar of spending relative to various alternative spending targets,” he said, adding:

By this standard, military spending does very poorly. It creates about 12,000 jobs per $1 billion in spending, compared with 17,000 for the green economy, 20,000 for health care and 29,000 for education. This means that when we spend $1 billion on the military rather than green investments, health care or education we are forfeiting between 5,000 and 17,000 jobs. Creating more job opportunities in this country therefore means moving money out of the military and into socially beneficial domestic spending.”

Center for Economic and Policy Research co-director Dean Baker said that economic modeling firm Global Insight came to a similar conclusion in a 2009 study. “Global Insight’s model projected that after 20 years the economy would be about 0.6 percentage points smaller as a result of the additional defense spending,” Baker said, “Slower growth would imply a loss of almost 700,000 jobs compared to a situation in which defense spending had not been increased.”

Perry Brags About Texas’ Tax System That Charges The Poor Four Times As Much As The Rich

Texas Gov. Rick Perry (R) was on the campaign trail in Newton, Iowa today, reviving his stump speech promise to make government “as inconsequential in your life as I can.” At one point, Perry bragged about the Texas tax system and its light burden on “job creators”:

We had a tax policy in place that allowed for our job creators to not be burdened, still delivering the services that the people desire in the state of Texas. So have a tax policy that is as light on the job creators as we can.

Watch it:

As Matt Yglesias has noted, in reality Perry’s tax system “has done a great job of soaking the poor.” In fact, according to the Institute on Taxation and Economic Policy, someone in the poorest 20 percent of Texans can expect to face a tax rate four times as high as a Texan in the richest 1 percent:

This isn’t really surprising, considering that Perry believes that the poor and seniors don’t pay enough in taxes. At the same time, Perry has admitted that higher taxes on millionaires and billionaires “isn’t going to affect anything” in terms of economic growth.

Jindal Backs Spending Offsets He Didn’t Support When His State Needed Disaster Relief

Louisiana has had its share of disasters during Gov. Bobby Jindal’s (R) time holding political office, from hurricanes Katrina and Rita in 2005 (when Jindal was a congressman) to the Deepwater Horizon oil spill that threatened the state’s beaches and waterways in 2010. The federal government came to Louisiana’s aid in each case, spending billions of dollars in emergency disaster funds to help clean up and rebuild the state in the aftermath of the disasters. In none of those instances did Congress offset the emergency funds with spending cuts, and in none of those instances did Jindal go out of his way to ask them to.

But with states across the nation rebuilding in the aftermath of hurricanes, earthquakes, wildfires, and tornadoes, Jindal wants to put restrictions on emergency funds that didn’t exist for the funds that benefited his own state. In an appearance on MSNBC’s Daily Rundown today, Jindal told host Chuck Todd that deficits and debt are a “man-made disaster,” and because of those, the disaster relief funds for New Jersey, Virginia, and other states in desperate need of relief “should be offset”:

TODD: There’s been a movement afoot to…search for budget offsets now, a change frankly. [...] Any advice for your fellow Republicans in the House when dealing with disaster relief?

JINDAL: We certainly as a state benefited after Katrina and Rita from the generosity of the American people. I fully support making sure the resources, the necessary resources, are there to help. [...] I do however, also support, at the same time, so they need, they deserve the help they need to get back on their feet. At the same time, I do think these dollars should be offset, should be part of a balanced approach to the budget. The reality is the deficit, the debt in DC is not caused by natural disasters, that’s a man-made disaster.

Watch it:

While some Republicans fought to offset Hurricane Katrina funding, Jindal was not among them, and neither was then-House Majority Leader Tom DeLay (R-TX), who argued that the funds should be deficit financed. And in 2008, Jindal traveled to Washington to lobby Congress to preserve $400 million in funding for ongoing hurricane relief and recovery efforts that had been stripped because they weren’t offset by other cuts.

Louisiana Rep. Cedric Richmond (D), who represents New Orleans, recently told the New Orleans Times-Picayune he couldn’t imagine what would have happened had Republicans held disaster relief hostage for the millions driven out when Katrina put his city under water. “We would have been waiting for months or even years for the assistance we needed to get New Orleans up and running again,” Richmond said. Jindal, apparently, has forgotten that.

NEWS FLASH

Over The Last Decade, Poverty Rose In 32 States | Census data this week showed that a record number of Americans — 46.2 million — were living in poverty in 2010. Nearly half of those families living below the poverty line were living in deep poverty. And as the Center on Budget and Policy Priorities noted, in some states poverty has been increasing for a long time. In fact, 32 states saw a statistically significant rise in poverty over the last decade.

CBPP’s Erica Williams noted that “In some states, the poverty rate rose at an especially rapid pace. In Indiana, poverty rose nearly 9 percentage points to reach 16.2 percent. The other three states with the biggest percentage-point increases in poverty — Arizona, Georgia, and Mississippi — ended the decade with poverty rates of 19.9 percent, 18.5 percent, and 22.9 percent, respectively.”

Econ 101: September 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.

  • A new book by former Wall Street Journal reporter Ron Suskind “claims that President Obama’s response to the economic crisis was hampered by a White House economic staff plagued by internal rivalries, a domineering chief adviser and a Treasury secretary who dragged his feet on enforcing decisions with which he disagreed.” [New York Times]
  • The book says that Treasury Secretary Tim Geithner “ignored an order from President Barack Obama calling for reconstruction of major banks.” [Associated Press]
  • During a trip to Europe today, Geithner pressed euro zone ministers “to leverage their 440 billion euro bailout fund and free up more resources to tackle a two-year-old debt crisis.” [Reuters]
  • House Democrats “are accusing the Obama administration of ignoring the lingering mortgage crisis and threatening tens-of-millions of Americans with foreclosure in the process.” [The Hill]
  • The Senate yesterday sent the House of Representatives “a measure to fund disaster aid by twice as much as the House wants to spend,” voting 62-37 for $6.9 billion “to cover disaster response until October 2012.” [Reuters]
  • The IRS announced yesterday that it has “collected an additional $500 million from a disclosure program designed to collect taxes from accounts stashed offshore.” [The Hill]

  • Ten years after its passage, “most educators and politicians agree that No Child Left Behind — President George W. Bush’s signature education policy — isn’t working.” [McClatchy]
  • Last year, “nearly 41 percent of the nation’s single mothers with children under age 18…lived on incomes below the federal poverty line.” [Huffington Post]

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