Progressive Breakfast

More Jobs, Flat Wages

Above average job creation in September. NYT: "The strong report was likely to buoy the outlook of economists who had worried the post-recession recovery was being sidetracked ... The pace of job creation in September, which was above many economists’ expectations, signified a return to the 200,000 level, a mark that had been surpassed each month since midwinter until the August lull."

But wages still flat. Time: "Meanwhile wages aren’t growing at all. Average hourly earnings in August rose 2.1% versus the same period last year, and the growth rate has been stuck at around 2% since the recovery. The same is true for the employment cost index, which measures fringe benefits in addition to salaries."

Obama Tries To Reframe Debate Over Economy

Obama defends economic record to date in push for higher wages and public investments. W. Post: "In a speech grounded in the economy and the gains it has made in recent years, Obama touched on his goals for issues including immigration reform, education, infrastructure, clean energy, equal pay for women and high-quality preschool ... Obama lambasted Republicans for failing to help the middle class, saying when the party 'actually had to take a stand on policies that would help the middle class and working Americans — raising the minimum wage, enacting fair pay, refinancing student loans and extending insurance for the unemployed — the answer was 'no.'"

Argues economy is moving but not fast enough for middle-class. USA Today: "'For all the work that remains — for all the citizens that we still need to reach — what I want people to know is that there are some really good things happening in America,' Obama said ... He cited statistics showing a steady rise in jobs (including manufacturing jobs), a decline in the unemployment rate, the comeback of the U.S. car industry, and falling federal budget deficits."

Conservative State Policies Backfiring In Midterms

Seven conservative governors may lose in November. The Nation's John Nichols: "The failure of the GOP austerity agenda stands in stark contrast to the success of states where Democratic governors have invested in infrastructure, services and schools. California’s Jerry Brown and Minnesota’s Mark Dayton, both of whom replaced Republican governors four years ago, are well ahead in the polls."

Conservative record holding back Senate campaign of North Carolina's Thom Tillis. Politico: "Privately, many Republicans are also wondering if [Sen. Kay] Hagan would still have been in a strong position if Tillis had resigned as speaker. They blame Tillis’ 'lost summer' — which resulted from a summer session of the Legislature, supposed to last only a few weeks, dragging on for three months — with keeping the Republican from fundraising, campaigning and distancing himself from some unpopular conservative legislative policies, including slashing jobless benefits, new voting laws and opposing Medicaid expansion."

Dem Sen. Mark Begich bets on Social Security expansion to boost re-election campaign. W. Post's Greg Sargent: "...the Begich campaign is set to roll out a ... proposal to shore up Social Security’s finances, but in a way that would permit an expansion of benefits to certain groups of seniors. Begich is set to hold two town meetings with seniors today, at which he will push the proposal, and his campaign confirms that it will be a key component of his message in the final stretch of the race ... [Republican Dan] Sullivan has signaled an openness to means testing and raising the eligibility age."

Obama Insists Immigration Action Coming Soon

Obama reiterates he will act on immigration this year. Politico: "President Barack Obama on Thursday pledged to Latinos that he’ll take executive action to ease deportations before the year’s end, vowing 'this is not a question of if, but when.'"

TNR's Danny Vinik defends Obama's immigration record: "It’s easy to look at the border crisis and the delay of Obama’s executive action and conclude that Obama’s recent immigration record is a disaster. But Obama has navigated a complicated crisis that had no clear solution while Republicans used it for political gain."

Inversion Rule Working

New inversion rules thwart pharmaceutical deal. Bloomberg: "Salix Pharmaceuticals Ltd. and Italy’s Cosmo Pharmaceuticals SpA ended a $2.7 billion merger agreement, the first time a U.S. company has blamed tougher rules for scrapping a plan to move overseas for lower taxes ... The scrapped deal is the first evidence that rules adopted last month by the U.S. Treasury Department are succeeding in curbing cross-border, tax-reducing deals known as tax inversions that have helped drive a record period of industry mergers."

"As Fed Retreats From Stimulus, Central Banks Overseas Expand Theirs" reports NYT: "As the growth of the United States economy outstrips the rest of the developed world, American policy makers are allowing Europe, Japan and even China to seek a little more prosperity — at the expense of Americans. The Obama administration and the Federal Reserve have watched quietly in recent years as foreign governments and central banks have chipped away at the dollar value of their currencies, strengthening their export industries in the hope of stimulating their economies. The trend is likely to intensify over the next year as the Fed retreats from its own stimulus campaign while the European Central Bank and the Bank of Japan expand their efforts."