"Why Wages Won't Rise"

Robert Reich explores "Why Wages Won't Rise": "... there's reason to believe the link between falling unemployment and rising wages has been severed ... it's easier than ever for American employers to get the workers they need at low cost by outsourcing jobs abroad rather than hiking wages at home ... a whole new generation of smart technologies is taking over jobs that used to be done only by people ... Employers know they can fill whatever job openings emerge with this 'reserve army' of the hidden unemployed - again, without raising wages."

Though some manufacturers shifting production to USA. WSJ: "...some companies contend the U.S. has renewed its attraction. Wages are stable, for example, while China’s have soared. The U.S. energy boom has reduced natural gas prices and kept a lid on electricity costs. Plus, more companies want to protect designs from overseas copycats, keep closer tabs on quality control and avoid potential disruption in supply chains that span oceans."

House Dems create committee to sharpen economic message. USA Today: "...the panel is expected to focus on messages that highlight Democratic policies to raise wages and long-term economic confidence."

Germany suffering from austerity, argues Bloomberg's Mark Gilbert: "Germany has been the principal architect of fiscal rectitude and the main opponent to any relaxation of deficit rules. What's happening in the heartland of German industry, however, suggests it's not just Germany's neighbors who are threatened by its economic intransigence ... their business environment is getting worse [and] they're reluctant to invest..."

Wall Street Playing Congress

Wall St. doing a better job with attacking Dodd-Frank than Republicans have with Obamacare. NYT: "The financial industry has been methodical, drafting technically complicated legislation that can pass the heavily Republican House with a few Democratic votes. And then, once approved, Wall Street has pushed to tack such measures on to larger bills considered too important for the White House to block ... Proponents of regulation say that they are badly outgunned by an army of Wall Street lobbyists, and complain that the Obama administration has been too weak in its response."

Keystone Senate floor debate could take weeks. The Hill: "With Republicans eager to pass the Keystone bill and move on to other priorities, Democrats are warning McConnell not to back away from his pledge to allow an open amendment process — no matter how long it takes ... Democrats are aiming to use the amendment process to force Republicans into a number of tough votes, including on whether to back an amendment that states man-made climate change is happening. Asked if the Republican caucus was ready to take that vote, McConnell said, 'Yeah!'"

"GOP moderates rebel against House immigration measure" reports Politico: "The measure – which would kill the Deferred Action for Childhood Arrivals program – is scheduled to come to the House floor Wednesday as part of a bill to fund the Department of Homeland Security ... more than a dozen House Republicans have told the GOP whip operation that they will not vote for the amendment ..."

Conservatives Renew Attack On Medicaid Expansion

"Obamacare’s Medicaid expansion is under renewed assault" reports Politico: "A handful of Republican governors said that after the November elections, they’d be open to taking billions of federal dollars to cover millions of their low-income residents under the Affordable Care Act Medicaid expansion. Instead, Medicaid faces possible retrenchment after a Republican tide swept emboldened Obamacare foes into every level of government."

States stingy with Medicaid suffer high costs, notes NYT's Eduardo Porter: "... for children born in 1981, Vermont’s more generous eligibility standards would have cost the federal and state governments $4,796 more a child than in Arkansas, measured in 2011 dollars ... [But] easier access to Medicaid translated into more payroll and income taxes when the children grew up. By the time Vermont’s children are 60 ... they will have repaid 56 cents of each additional Medicaid dollar spent on them when young ... Healthier children are more likely to become more productive adults who need less government assistance. Children with behavioral problems who receive counseling are less likely to end up in prison — a big expense line on state budgets."

Breakfast Sides

Obama will push for broadband expansion in Iowa today. NYT: " President Obama on Wednesday will ask the Federal Communications Commission to pre-empt state laws that restrict communities’ ability to expand high-speed Internet access to underserved areas. Mr. Obama will make the announcement in Cedar Falls, Iowa, which has its own cable and high-speed data networks, including a one-gigabit broadband network that is 100 times as fast as the national average."

Budget cuts kneecap IRS. USA Today: "The Internal Revenue Service will lose 1,800 tax collectors through attrition and do 46,000 fewer audits this year because of congressional budget cuts ... Identity theft prevention efforts will be delayed, refunds could be held up and taxpayer services available by telephone will see longer wait times -- if taxpayers can get through at all ... [IRS Commissioner John] Koskinen even raised the possibility of a two-day shutdown before Sept. 30, sending IRS employees on unpaid furlough."