Each morning, Bill Scher and Terrance Heath serve up what progressives need to affect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
State Aid Signed Into Law After Partisan Vote
House passes, President signs state aid bill into law. LAT: "[The law] will keep 161,000 teachers and thousands of police, fire and other local government workers from being laid off ... all but three Democrats present voting for the bill and all but two Republicans present voting against ... The liberal-leaning Economic Policy Institute estimates the Medicaid funds will save an additional 158,000 jobs nationwide."
Dems hope to frame deficit-neutral state aid as "common sense." Politico: "'My voters are rational voters. If it’s paid for OK,' said Rep. Gerald Connolly (D-Va,). 'While the other side wasn’t looking, the ground has shifted yet again and I think people want to hear more than "No, absolutely no." And remember everybody’s affected directly by their local government.'"
Swampland's Kate Pickert says the state aid issue is the quickest way to tell Republicans in Washington from Republicans just about anywhere else: "...despite congressional Republican battle cries about government over-spending, Republican governors on the frontlines of budget crises once seemed eager to accept the extra dollars ... Indiana Gov. Mitch Daniels, a Republican who signed the Feb letter, has lately been railing against the extra Medicaid funding ... but will Indiana reject the $434 million coming its way thanks to Congress on the grounds that it's not needed? Nah."
Loudly anti-stimulus conservative governors quietly took the money. NYT: "The reversal by [Gov. Mark] Sanford attracted virtually no notice, but it made South Carolina the 33rd state in the country to expand jobless benefits to qualify for its full share of stimulus money under the program ... Mr. Sanford joined several other governors who had initially expressed hesitation about the money but later relented, including Dave Heineman of Nebraska and Sonny Perdue of Georgia, both Republicans, and Phil Bredesen of Tennessee, a Democrat."
Digby says Republicans are turning their backs on the suburban middle class: "...this is where the vulnerable underbelly of their 'just say no' campaign. They are voting against nice, white, suburban middle class Americans this time (along with nice brown and black suburban middle class Americans) with this crusade. And going after teachers, cops and firefighters is a very, very dangerous thing to do."
Ecocentric's Bryan Walsh displeased that renewable energy funds were cut to help pay for state aid: "Pelosi's staff has said that she will work to restore the funding at a later date. But that didn't happen with the money taken out to pay for the Cash for Clunkers program ... The reality is that for all the lip service paid by Democrats to the renewable energy industry—supposedly the future of jobs in America—these companies have little political influence on Capitol Hill."
WH says energy funds will be restored reports The Hill. Maybe by September says Rep. Ed Markey.
Fed Taps The Gas Pedal
Fed shifts view on economy, offers more help. McClatchy: "Downgrading its view of the economy, the Federal Reserve on Tuesday projected a 'more modest' rate of recovery in the months ahead and announced that it will use proceeds from the mortgage bonds it owns to buy new Treasury debt in an effort to spark growth and investor confidence.
Paul Krugman argues the Fed should do more: "...it has gone from a completely crazy policy of monetary tightening in the face of massive unemployment and incipient deflation, to a policy of standing pat in the face of same. Whoopee. ...
Reuters' Felix Salmon argues the Fed can't do much more. "The bigger picture, however, is one of the Fed largely having run out of ammunition. Most of what it’s doing now is symbolic: the real national response, as Mohamed El-Erian says, needs to come from the government rather than the central bank, and needs to be structural rather than monetary in nature."
Josh Marshall sees an "I Told You So" moment: "...there were a lot of folks earlier this year arguing, very convincingly, that the move away from stimulus to inflation-worry and retrenchment was little short of insane ... It had all the hallmarks, though on a much speeded-up basis, of the move to slash spending in 1937, which had terrible consequences for the US economy ... it really is one of those 'what were they thinking' moments. And the Feds move today just sort of confirms it."
NYT's David Leonhardt says the recession's impact is concentrated in certain areas: "The least affected area is a band running from the Dakotas and Minnesota down to Texas and Louisiana ... Many of the states in the best shape also have small populations and, as a result, outsize political power [in the Senate.] ... The first two years of the downturn were disproportionately blue collar ... This year has been different. ... Many white-collar fields, meanwhile, are losing jobs: state and local governments, publishing, telecommunications ... This shift from blue to white collar is the main reason the downturn has also become more female."
Self-declared "class worrier" Robert Reich details what happened to the American middle class: "... the systematic and ever cleverer manipulation of laws and rules by those able to pay lobbyists, legislators, lawyers, accountants to do their bidding. ... To be sure, globalization and technological change have bestowed gains disproportionately ... But instead of enlarging the circle of prosperity so that the vast middle class could come out winners as well — instead of strengthening trade unions, improving public education, deepening public investments, enlarging safety nets, and making the tax system more progressive — the nation took direction from those at the top, and did the opposite."
TNR's Jonathan Chait shreds Weekly Standard claims of massive government takeover of the economy. "...what is [Matthew] Continetti's evidence that this libertarian horror story is already happening? Well, he spends a great deal of time lambasting the auto industry. [But] Continetti concedes that the auto industry has recovered ... What other businesses out there are staggering along due to massive government intervention? We've been promised a story about an economy 'filled' with them. It turns out the only other examples of massive government intervention in the economy are... state and local governments, and the continued existence of Fannie Mae and Freddie Mac."
Wealthy would still keep some of their tax cut even if Bush tax cut for the wealthy allowed to expire this year. NYT: "Given the progressive nature of the federal income tax system, in which tax rates increase with income, even the richest households would continue to pay the four lower rates on up to the first $250,000 of their income, under the approach being pushed by Mr. Obama and Democratic leaders in Congress ... Taxpayers with income of more than $1 million for 2011 would still receive on average a tax cut of about $6,300 compared with what they would have paid under rates in effect until 2001 ... That compares, however, with the roughly $100,000 average tax cut that households with more than $1 million in income would receive under current rates."
House Clears Border Security Bill
Money for border agents and aerial drones passes House, heads back to Senate. LAT: "A $600-million bill to beef up border security should have been on its way to President Obama for signature after the House approved it Tuesday, but instead it has been derailed by a procedural glitch that requires a do-over by the Senate — which has adjourned until September ... Senate leaders said they would try to re-approve the bill this week using a special [unanimous consent] procedure — the same one they used to pass the bill just days ago — that does not require senators to be present for a voice vote. It is uncertain if they have the support to accomplish that."
Sen. Maj. Leader Reid wants to pass it this week reports The Hill.
W. Post's Harold Meyerson argues conservatives want to change the 14th Amendment so there will be fewer Latino voters: "By proposing to revoke the citizenship of the estimated 4 million U.S.-born children of undocumented immigrants -- and, presumably, the children's children and so on down the line -- Republicans are calling for more than the creation of a permanent noncitizen caste. They are endeavoring to solve what is probably their most crippling long-term political dilemma: the racial diversification of the electorate."
Leading Spanish-language anchor Jorge Ramos charges President with breaking immigration promise. Politico: "'He has a credibility problem right now with Latinos,' Ramos said ... The president’s major immigration speech last month only created more discontent [in Spanish-language media.]
Social Security Myths Get Debunked For Its Birthday
Dean Baker debunks W. Post edit board argument for raising Social Security retirement age: "...the Post tells readers: 'Too soon, this year's anomaly will become the norm. By 2037, all the Social Security reserves will have been drained and the income flowing into the program will only be enough to pay 75 percent of scheduled benefits.' ... Let's see, it would be intolerable to have Social Security pay 75 percent of scheduled benefits in 2037, but one of the Post preferred cuts is raising the retirement age to 70, a 15 percent cut in benefits when fully phased in. So the Post thinks it would be just fine to have beneficiaries get 85 percent of scheduled benefits in 2037."
OurFuture.org's Dave Johnson asks why is the deficit commission even talking about Social Security: "Social. Security. Does. Not. Contribute. To. The. Deficit."
OurFuture.org's Richard Eskow debunks the "there is no trust fund" argument pushed by W. Post's Allan Sloan: "The real shocker in Mr. Sloan's piece is this line: 'The trust fund is of no economic value.' Let's hope that nobody takes him seriously when he says that, because it could set off a panic. Bonds from the United States Treasury are of no economic value? They are, in fact, one of the safest forms of investment. What could he mean?"
Follow The Money
After Wall St. reform becomes law, Wall St. money shifts to Republicans. WSJ: "Republicans candidates collected about 70% of the political donations from the employees and political accounts of financial services firms in June ... That’s a reversal from March, when Democrats collected 70% of the donations from Wall Street."
Coalition effort to track "dirty energy money." The Hill: "A slew of liberal groups launched a website Tuesday that provides detailed data on petroleum and coal industry contributions to Congress over the last decade — money that the activists tied to the death of climate change legislation on Capitol Hill. The site — www.dirtyenergymoney.com — is run by the group Oil Change International and backed by a dozen partners, including Greenpeace, MoveOn.org, Friends of the Earth and the Center for Responsive Politics ... In the 111th Congress thus far, the industries have favored Republicans over Democrats, 54-46 percent. But the groups say the coal sector specifically has given more to Democrats in this Congress..."
Make It In America. Make It Green.
Robert Borosage expresses hope for Democrats "Make It In America" initiative, if it goes far enough, in Politico oped: "Meeting the competition is likely to require U.S. renewable energy standards that ensure a growing market for alternative energy, aggressive use of government procurement to help domestic producers, tax credits and other subsidies to help start-ups, expanded investment in science and technology and, finally, setting a price on carbon emissions. A national investment bank could mobilize the public and private investment in new energy and infrastructure projects."
Inactive farmland may become major California solar farm. NYT: "At peak output, the proposed Westlands Solar Park would generate as much electricity as several big nuclear power plants ... Recycling contaminated or otherwise disturbed land into green energy projects could help avoid disputes when developers seek to build sprawling arrays of solar collectors and wind turbines in pristine areas, where they can affect wildlife and water supplies."
Chinese companies strike deal with United Steelworkers to create Texas wind power jobs. USW President Leo Gerard, in OurFuture.org: "...two Chinese companies have agreed to build as much of the wind turbines as possible in America, using American-made steel, and creating perhaps 1,000 American jobs.
The deal is a result of white collar Chinese executives negotiating with blue collar union officers to create green collar jobs in the U.S. The agreement defies stereotypes about unions as constantly combative, excessively expensive and environmentally challenged."
State-based carbon cap efforts may stall if conservatives win governors' races. Politico: "Nineteen gubernatorial races involve states that participate in the regional climate initiatives that have emerged as important alternatives to federal policy."
Progressive Enthusiasm For Obama Questioned
OpenLeft's Chris Bowers argues the President has a weak approval rating among liberals: "So, where does Obama's approval actually stand among self-identified liberals? ...[Simple poll averaging] would peg President Obama's approval rating among self-identified liberals at around 79-80%. Those are not very good numbers for President Obama among self-identified liberals ... until the Obama administration and Congressional Democrats start passing public policy that has a more immediate, positive impact on the lives of most Americans, it is unlikely that this rating will improve."
Kos analyzes why Democrats didn't get bump in the polls after health care reform: "A year ago at Netroots Nation, President Bill Clinton promised that if health care reform passed, Democrats would see a 10-point bump in the polls the following day. It didn't happen. ... In the past, the only contact most people would have with the legislative process was the final product -- big headlines proclaiming that a historic bill had just passed ... But in this media-saturated world of today, that doesn't happen anymore. Rather, we got an intimate look at the sausage-making process ... when the various pieces of legislation have passed, whether its the health care or financial reform laws or whatever, the sense hasn't been jubilation, but relief."
