Jobs will Define the Outcome of Presidential Election 2012

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Jobs will Define the Outcome of Presidential Election 2012

Postby WalkerARCHITECTS » Wed Sep 07, 2011 10:15 pm

DETROIT (AP) -- President Barack Obama used a boisterous Labor Day rally to put congressional Republicans on the spot, challenging them to place the country's interests above all else and vote to create jobs and put the economy back on a path toward growth. "Show us what you've got," he said.

In February of 2011 Vice President Joe Biden unveiled the details of the plan announced by President Obama to give 80 percent of Americans access to high-speed electric rail within 25 years, which will drastically reduce foreign oil imports and create jobs. The Republicans immediately did everything they could to kill this plan. That is the problem in a nut shell.

People all over the US were excited that much needed progress accompanied by economic opportunity in a large number of communities was in the pipeline. “This historic investment in America's high-speed rail network keeps us on track toward economic opportunity and competitiveness in the 21st century. It's an investment in tomorrow that will create manufacturing, construction and operations jobs today,” said Secretary of Transportation Ray LaHood in a White House press release bank in February.

The $53 billion proposal will have extensive Buy American provisions to ensure that American workers enjoy the jobs created through the construction of the rail system. Buy American provisions are among the things Republicans keep fighting. We recently published about a solar manufacturer who declared bangruptcy because of this failure to prudently protect our investment of government money. Unfortunately recent grants for solar and wind power have gone to manufacturers in China. This article is about a mentality that is frankly directly adverse to the interests of most Americans.

The American Recovery and Reinvestment Act of 2009 distributes funds in three ways. Since its enactment in February 2009, $710.8B has been paid out. $298.5 B in tax benefits, $205.2 B in Contracts and Grants & Loans, and Entitlements at $207.1 B. After this massive infusion it is clear that we avoided a catastrophe of enormous scale. Given of course the incredible financial losses in Iraq and Afganistan, attributed to massive waste and corruption, should there have been the spark of a recovery? We think it should be better than this and we think that the false ideology about what is good for America, championed currently by Tea Party Republicans is largely responsible. The truth is that what is really taking place is that the long-term economic decline of the United States is beginning to accelerate.

Last Friday, the Obama administration announced that it would be withdrawing the proposed updated national ozone standards, delaying until at least 2013. Probably in hope that the nuts in the shell will be gone by then. These standards are a safeguard that would protect our families from dangerous smog pollution. The league of conservation voters and others are outraged, although if they think that electing a republican president is a better move for their members they have displaced reason with an over focused special interest in fossil fuel.

The mainstream media teaches us to blame our politicians for the economy. Actually Wall Street and Main Street banking are the source code of the economic trigger of this massive problem, but the underlying cause is the erosion of the value of American labor that the low cost of offshore labor generates. Labor as a commodity is a substantial component of the wealth of the nation that is rapidly declining in value! One recent survey found that 44 percent of the American people believe that the U.S. economy is "worse than when Obama was inaugurated".

Yes, we could blame Barack Obama, we might declare him to be a horrible president. But the economic downfall of this nation was inherited from the ideology of a party manifested in the administration of George W. Bush. Clearly then he must be a horrible president too. In the same sense the middle class might just as well denounce Bill Clinton and et all to Ronald Reagan. The truth is Congress has been corrupt and incompetent for decades and is actively seeking new lows in 2011. For the sake of god and country, would the congress please get busy and solve the nations very serious problems and stop locking horns on political philosophy and special interest. If the people are not your special interest right now and you are in congress please resign so the country can recover and get back to business.

Special interests are relentless. Right now many organizations are emailing members with the following statement; “In making this decision, the Obama administration has caved to big polluters at the expense of protecting the air we breathe. It is a huge win for corporate polluters and a huge loss for public health.” In reality the president of the United States can’t make every special interest group happy all the time. The truth is now is not the right time, because the congress is deeply divided..

One central theme in conservative orthodoxy is that regulations are bad for business — and bad for jobs. They also profit from some regulations and the so called free market is clearly a false god of mythical proportions. There is after all some truth in that. An emergent theme in Barack Obama’s presidency according to the recently orphaned special interest appears to be that he will do exactly what conservatives want now like a spineless loser on the playground. This of course is a distortion.

In his defense the president is trying to create private sector jobs and to do this he must be a bit more friendly to private sector interests. It was surprising when last week he forestalled plans to bring the EPA’s outdated standards up to the minimum health standard when he axed the Ozone regulation.

“On economic growth, real GDP has risen 0.8% over the 13 quarters since the recession began, compared to an average increase of 9.9% in past recoveries. From the beginning of the recession to April 2011, real personal income has grown just .9% compared to 9.4% for the same period in previous post 1960 recessions.”

The U.S. economy is not producing enough jobs. Today, there are 25 million Americans that are either unemployed or underemployed.

In a partial preview of the jobs speech he's delivering to Congress Thursday night, Obama said roads and bridges nationwide need rebuilding and more than 1 million unemployed construction workers are itching to "get dirty" making the repairs. He portrayed Congress as an obstacle to getting that work done. We have observed this conduct recently and we are appalled by the conservatives blockading hostage taking style of politics. We are deeply annoyed by the failure to shut down the lies and distortion generated by those same members of congress and the people who fund them. Lies are the number one barrier to economic recovery and in the private sector the number one source of lost profits.

Backing down on environmental regulation is still a terrible move for Obama, because some special interests are alienated. The nation has already been shortchanged of reason by hardnosed ruthless conservatives. These regulations, which would have tightened the National Ambient Air Quality Standards, would have reduced the incidence of killers like asthma throughout the country. The error made by President Obama, is that it has alienated him from a core constituency. Environmentalists, conservationists and people who generally do not enjoy smog, who had previously supported him, do not understand his reasoning.

Nor did his let’s create some jobs speech help us to grip the logic of politically pandering to an industry that is completely aware of the death rate directly attributed to pollution in the air. We need good family supporting jobs in the United States, jobs that the Chinese and their communist government can’t take from us.

“I'm going to propose ways to put America back to work that both parties can agree to, because I still believe both parties can work together to solve our problems," Obama said at an annual Labor Day rally sponsored by the Detroit-area AFL-CIO. "Given the urgency of this moment, given the hardship that many people are facing, folks have got to get together. But we're not going to wait for them." Pollution regulation could reduce jobs in several industries, and those industries are unionized. Coal for example and oil and gas industries involve a great many union employees! Now is not a good time to push for this anti-smog legislation. Now is the time to create jobs, to pressure corporate America to build a high speed rail network.

Many economists are arguing that the EPA regulations would have created jobs, which is ostensibly Obama’s biggest goal right now. So the issue is why do some argue that cleaning up the air eliminates jobs and others argue that it creates jobs?

At best in terms of jobs this is a break even deal. Even in non-recession conditions, industry claims about job losses have been greatly overblown according to environmentalists. The New York Times reported that previous regulations (that industry insiders predicted would cost tens of thousands of jobs) actually “had been a modest net creator of jobs through industry spending on technology to comply with it.” Maybe the president missed the article or has better data.

These statements bolster the argument made by economists that conservative cost-benefit analyses show that ozone reduction would significantly improve the welfare of people living in the US, no matter what dastardly pronouncements industry insiders make. We have to admit that we have an acute awareness of a great many very serious lies being told by conservative Republicans and we detest their tactics and refusal to proactively engage in job creation.\

“My view is that the Republican claim that ‘job-killing regulation’ is a redundancy is as ridiculous as the left-wing view that ‘job-killing regulation’ is an oxymoron,” said Cass Sunstein, head of the White House Office of Information and Regulatory Affairs. “Both are silly political claims that have no place in a serious discussion.”

The president said; "We're going to see if we've got some straight shooters in Congress. We're going to see if congressional Republicans will put country before party," he said. Walker Architects observes here that the previous tests have clearly demonstrated their complete willingness to allow the middle class to die from the poisons in the air, and go bankrupt because of the job shortage. Regarding creation of jobs we must believe they need to create permanent American jobs as badly as we need to have them, but that is not what they are doing!

As Congress returns from its summer recess this week and the faltering economy and jobs shortage are expected to be a dominant theme. The focus Republicans have is that if we cut the size of government that the consequence will be more jobs. REALLY? That is one of the previously noted lies. Now honestly, how does that create jobs in proportion to the jobs the budget cutting eliminated?

Less is less.

But the inability to create jobs is not a new phenomenon for the U.S. economy. The truth is that between 2000 and 2007, the U.S. economy had its poorest stretch of job creation since the Great Depression. However, since 2007 the employment situation in this country has gotten a lot worse.
There are economists arguing that given the current threat of a double dip recession, these public benefits — namely job creation — would have been even more pronounced in the nixed ozone regulation. Oddly, we can’t really imagine how that could happen. According to the basic macroeconomic IS-LM model, in a recession the problem is that there is insufficient demand. The demand is low because the middle class has been victimized by an effort to drive American wages through the floor. The real forcing vectors are aimed directly at the value of American labor in the context of the now available alternatives.

Basically, because people, businesses and the government are not buying enough, businesses cut production, wages and jobs along with it. This is a self-referencing disaster; a cycle of decay. A frenzy of profit taking from middle class wages, was justified by a series of serious economic setbacks. Firms, instead of investing their profits, as these economists tell us they should, just stockpile cash, for a day when demand picks up again. The trick to recovery is boosting demand in a way that leads firms to hire more people, thus giving previously unemployed workers disposable income that, in turn, increases their demand for goods. The fifth discipline applies!

This economic model, is supported by quite a few economists. Activists are arguing that the conservative complaint of additional ozone standards, that it makes businesses spend money on consultants, engineers and technicians — makes absolutely no sense. Often to meet new standards Architects would need to be hired. As Nobel Prize-winning economist Paul Krugman writes on his blog: “it would have forced firms to spend on upgrading or replacing equipment, helping to boost demand. Yes, it would have cost money — but that’s the point! And with corporations sitting on lots of idle cash, the money spent would not, to any significant extent, come at the expense of other investment.”

It rings true, Republicans prefer to eliminate middle class jobs instead of creating them, they choose to continue dumping pollution on human populations instead of cleaning up the problem and they lie. Not looking good for Republicans is it?

Kugman was not talking just about new smog legislation but in general economic terms. Krugman is not alone in this view. Joe Romm of Think Progress pointed out that “the standard would not have any noticeable negative impact on the economy and, if anything, would have driven investment and innovation even in the short term.” We have a tendency to agree with Krugman because among economists he is one of the few who is consistently correct. Given that investment is an important part of the demand, this should have been done and would have increased economic activity, Safe guarding against smog does not expand the GDP.

But what if the industry responded with lay-offs? Creating jobs and sparking economic growth is what American corporations should want for America. It is already obvious that they don’t see things the way environmentalists do. What they want is lower wages because that means bigger profits and a better capacity to compete. It is their dream to be able to compete with Communist China or is it some other impossible dream?

Since some businesses have huge cash reserves – in the trillions — they say, this investment, in anti-smog jobs would have come out of the industries pockets, and wouldn’t have been redirected from anything else, meaning it would have represented real growth. True, these industries would create jobs, unfortunately the industry does not think this is something that they want or need, or it would not take a new law to make them do it.

The argument that increasing the financial burden on the company to produce something they can’t sell, even if it does somewhat reduce the risk and uncertainty on the business, is going to have the net effect of creating more jobs, bluntly speaking this is a stab in the dark. What is the incentive for the company to part with their cash? In this matter Mr. Krugman is bit too opaque and the environmentalist does not see the world the way these companies do or the way Mr. Krugman does..

Besides spending on public works, Obama said he wants pending trade deals passed to open new markets for U.S. goods. This means we get to sell to other nations things that we make here. Nobody in China can buy anything when the wage is $1.32 an hour in the Urban Centers.

So what foreign markets are we going to sell to? He also said he wants Republicans to prove they'll fight as hard to cut taxes for the middle class as they do for profitable oil companies and the wealthiest Americans. We do think wealthy Americans could pay more or invest in permanent American jobs. Let’s give them that choice. But we would prefer to have enough jobs that we did not live in terror of losing our job. Corporate America has become the “New Terrorist” people stay awake at night from the fear of job loss!. We do not want tax cuts nearly so much as we want good family supporting jobs. Complaining about taxes is NOT the current topic in the middle class and unemployment is the dominant issue.

Consequently the president is expected to call for continuing a payroll tax cut for workers and jobless benefits for the unemployed. Some Republicans oppose extending the payroll tax cut, calling it an unproven job creator that will only add to the nation's massive debt.

Republicans actually may be trying to destroy the middle class. The tax cut extension is set to expire Jan. 1. The middle class needs to stretch their now reduced pay checks and the Republicans are simply out of touch at best or simply evil people who want to hurt working people for the fun of it. Republicans also cite huge federal budget deficits in expressing opposition to vast new spending on jobs programs. Strange how all of their ideas about economic recovery have this enduring quality; making wealthy people wealthier.

But Obama said lawmakers need to act - and act quickly. "The time for Washington games is over. The time for action is now," he told a supportive union crowd that Detroit police said was in the thousands. The event at a General Motors Corp. parking lot in the shadow of the automaker's headquarters building had the sound and feel of a campaign event, with the union audience breaking into chants of "Four More Years" throughout the president's 25-minute speech.

Obama could be and should be, including himself in that call for action. His remarks came as he's facing biting criticism from the GOP for presiding over a persistently weak economy and high unemployment. Republicans however clearly are cutting government jobs and refuse to support the presidents request that they participate in repairing the most expensive health care system in the world, creating new private sector jobs and repairing Social Security, Medicare and Medicaid now damaged by the recession and economic disaster spawned by the flawed policy of the Busch administration. In short they appear to be holding jobs for Americans hostage in the same way they took the nation hostage of the debt ceiling issue to force concessions that will HURT more Americans than it will help.

Our politicians promised us that globalization would be great for the U.S. economy. It is the root cause of the problem. We have no doubt about that. Who can compete against wages in the range of $1.32 an hour?

Well, it was great for the big corporations to be able to pay slave labor wages to workers on the other side of the globe, but things have not worked out so well for workers in this country. The middle class wants a correction to the unemployment and wage problem. Washington D.C. had better stop pointing fingers and deliver a national economy that is acceptably sustainable.

Millions of our jobs have been lost. Millions more jobs are being lost. Yet our politicians do nothing to stop the bleeding. It is the GOP who are blocking and eliminating jobs. Things have gotten so bad that even the top of the food chain is shipping jobs overseas.

Just consider this headline which appeared in Business Insider: "Goldman Sachs Is Firing Employees In The US So It Can Hire 1,000 In Singapore"

Republicans dubbed President Obama "President Zero" after a dismal jobs report last Friday showed that employers added no jobs in August - which hasn't happened since 1945. The unemployment rate, meanwhile, remained unchanged at 9.1 percent. Republican ideology put us in this disaster, their allegiance to these same flawed ideas is keeping us there. Without the private sector willingly investing in America there will be no recovery.
The report sparked new fears of a second recession and injected fresh urgency into Obama's efforts to help get the unemployed back into the labor market - and improve his re-election chances. No incumbent in recent times has been re-elected with a jobless rate that high, and polls show the public is losing confidence in Obama's handling of the economy. The problem is that America’s corporations will not invest in the nation because the offshore alternative is so much less expensive per labor hour. President Obama can’t change that and neither can we, unless we close the ports to product made by communist labor. His approval rating on that issue dropped to a new low of 26 percent in a recent Gallup survey.

Look, whoever is elected in 2012 is going to be in for a rough ride. Some very difficult economic times are ahead, and whoever is elected in 2012 is going to get blamed. By 2016, the president is probably going to be the most hated person in America. Or we can get smart and defuse the false ideology of trickle down economics once and forever.

The truth that is revealed is that these economic problems have been building for decades, American workers have had flat wages or falling wages since 1979. China and trade with communist labor has added substantially to an accelerated decline as the value of labor in the USA now rapidly declines.
Obama's broader goal with the speech is to make a sweeping appeal for bipartisan action on the economy by speaking not just to the lawmakers in front of him but also to the public at large. In that sense, the speech will mark a pivot from dealing with long-term deficit reduction to spurring an economic recovery.

Aides say Obama will mount a fall campaign centered on the economy, unveiling different elements of his agenda heading into 2012. If Republicans reject his ideas, the White House wants to use the megaphone of his presidency to enlist the public as an ally, pressure Congress and make the case for his re-election. GOP members of the Congress need to produce jobs and lead the Congress to create jobs or shut up and get out of the way!

"People will see a president who will be laying very significant proposals throughout the fall leading up to his next State of the Union" address, Gene Sperling, director of Obama's National Economic Council, told The Associated Press in an interview.

While Obama has said any short-term spending proposals will be paid for over the long term, aides say the speech will not offer details on what deficit reduction measures would be used to offset such spending. The speech also is not expected to include a detailed plan to resolve the housing crisis, a central cause behind the weak economy that has vexed the White House since the beginning of Obama's administration. Sperling suggested that Obama would address the housing issue separately during the fall.

Associated Press writers Jim Kuhnhenn and Julie Pace in Washington contributed to this report.
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