MORNING MESSAGE: The Scarring Effect of Long-Term Unemployment
OurFuture.org's Bill Scher: "A new report from the National Employment Law Project, 'Scarring Effects: Demographics of the Long-Term Unemployed and the Danger of Ignoring the Jobs Deficit,' is a blaring siren to policymakers in Washington. While noting that nearly 5 million people have been out of work for over six months, the report reminds that their individual suffering hurts the economy as a whole ... NELP concludes, 'We suggest that the diversity of this population means it will take a variety of job creation measures to reattach them to the workforce, and that the longer we wait in the name of austerity to implement these programs, the more intractable the problem of long-term unemployment will become.'"
Sequester Nation: Obama's Pay Cut
Obama takes 5% pay cut. W. Post: "President Obama plans to give up 5 percent of his salary this year to draw attention to the financial sacrifice of more than 1 million federal employees who will be furloughed by automatic spending cuts starting in less than three weeks ... Other high-profile members of his administration have done the same, and others may follow."
Defense Sec Hagel prepares military for more cuts. Reuters: "...Hagel warned the military to brace for more belt-tightening on Wednesday as he conducts a review that could cut the number of generals, pare back the civilian workforce and stem the spiraling cost of new weapons ... His comments marked a shift in tone at the Pentagon, which for months harbored hope that Congress and the White House would rescue it from spending reductions beyond a $487 billion cut approved in 2011."
C-Quest.org tracks sequester impact: "As the full impacts of the sequestration continue to kick in, hardworking American families are being hurt by conservatives’ refusal to discuss a balanced approach to reduce the deficit. Rather than coming to the table to find solutions that would save these families from bearing the brunt of their intransigence, conservatives in the House doubled down and decided to make things even worse by passing the Ryan plan."
Medicare buy-in could be linchpin to grand bargain, reports Politico: "The GOP would get the higher [eligibility] age it wants. But in turn, it must agree to allow 65- and 66-year-olds — who would be left out in the cold — to buy in to Medicare until they are 67 ... 'It’s an idea worth exploring,” one GOP leadership aide told POLITICO. 'There are no immediate red lines that come to mind.'"
Brown v. Banks
"Banks Prefer Schumer Over Sherrod Brown for Panel Chair" reports Bloomberg: "If Schumer were to pass on the job, one of the next Democrats in line is Sherrod Brown of Ohio, an outspoken critic of Wall Street who’s behind a move to require the largest U.S. banks to shrink ... 'The chairmanship is Schumer’s for the taking but it seems like his aspirations are to be majority leader ... ' said Jaret Seiberg, senior policy analyst at Washington Research Group ... Meanwhile, Brown’s office says he’s definitely interested in the post."
GAO reports slams Fed and OCC for foreclose reviews. NYT: "The regulators, the report found, designed a flawed review of troubled loans that the consultants carried out and mishandled ... [At a Senate hearing next week] Senator Sherrod Brown ... is expected to broadly question the quality and independence of consulting firms that are paid billions of dollars by the same banks they are expected to police ... [Consultants] racked up more than $2 billion in fees despite reviewing only a small fraction of foreclosed loans. The consultants’ delays and inefficiencies caused homeowners to languish and prompted regulators to scuttle the review and settle with banks for $9.3 billion."
"Don't panic" says Barney Frank in FT oped: "...with the re-election of Barack Obama, I have no doubt that the necessary new rules will be in place in good time. While I share the frustration that many feel about our slow progress, I do not share the angst that often accompanies it. Some of the factors responsible for the pace were inherent in the task."
Obstacles to Immigration Reform Persist
Mayor Rahm Emanuel and Rep. Luis Gutierrez argue for lower citizenship fees in NYT oped: "The fees to become a naturalized citizen have risen significantly over the last decade ... At $680, an employee earning the federal minimum wage would have to work for more than two months to pay for an application for himself or herself, a spouse and two children ... A sensible fee structure would set minimum and maximum fees, create a sliding scale based on household income and family size..."
Family visas may be a sticking point. TPM: "...religious leaders, labor groups, and immigration activists are worried that the new visas will come at the expense of families, who could find it harder to sponsor their relatives to join them in the United States ... Lawmakers working on a bipartisan reform bill have suggested reorienting America’s immigration system away from family visas, which make up about 65 percent of new permanent residents each year, and more towards high-skilled workers who could help boost the economy."
Key House Rep suggests immigration reform may be done piecemeal. Roll Call: "Judiciary Chairman Robert W. Goodlatte ... appeared committed to most aspects of an immigration overhaul currently being discussed ... said Republicans have 'definitely left [the] option open' to addressing those and other issues through multiple bills, rather than one comprehensive piece of legislation that includes every component."
