Robert Reich: Bad Economic News Means Obama Should Push Aggressive Spending

Robert Reich says, in yesterday’s blog, “Why Economic Advisors Are Paid to Be Economic Advisors,” that President Obama needs to hear from economists that to avoid the enormous pain and suffering of a “double-dip recession or, at best, suffer anemic growth over the next five years,” he must move quickly to take aggressive measures.

Reich would like to see:

  • a $300 billion jobs bill, including zero-interest loans to states and locales to prevent them from having to raise taxes and cut services,
  • public-service jobs (cleaning up the Gulf), and
  • a one-year payroll tax holiday on the first $100,000 of income.

Reich says that in the face of much bad news, it would be wrong for the president to bend to Republican pressure and, “tell the American public that we now have to move toward fiscal austerity,” and that any economist who could support such a notion shouldn’t be advising the president.

Reich makes a list of reasons why aggressive action is needed:

  • The economy is still in a deep hole, the deepest since the Great Depression. The jobs report for May was dismal — a mere 41,000 new private sector jobs, when the economy needs at least 100,000 to keep up with population growth.
  • The Fed projects gross domestic product, the broadest measure of economic activity, to rise about 3.5 percent this year — a pace barely above that needed to keep pace with the growth in the labor force.
  • Consumers don’t have the buying power to get it out of the hole because they can no longer use their homes as collateral for loans, as they could before the crash of 2008, and they also have to get out from under huge debts.
  • Businesses are reluctant to create new jobs if there are few customers for their goods or services.
  • Export markets are drying up because of a high dollar that’s made our exports more expensive,
  • Europe has embarked on austerity measures to shrink its deficits.
  • State revenues are way down because of the deep economic hole, and they’re forced to raise taxes, cut services, and lay off large numbers of state workers, including teachers.
  • All the boosters keeping the economy barely going now are coming to an end. The Fed can’t keep interest rates near zero for long because it’s starting to worry about inflation. It’s already stopped buying Treasury securities and mortgage bonds, and its own deficit hawks are squawking.
  • The federal stimulus is 75 percent spent, and the money will be gone in a few months.
  • Census workers will also be gone by the end of the summer.
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Voters Approve “Top Two” Primary Reform In California — Proposition 14 — Will It Strengthen Or Hurt Democracy?

In Tuesday’s election, California voters statewide overwhelmingly Proposition 14 and so, starting in 2011, there will be a big change in California’s election system.

The NYT reports, “Under Proposition 14, a measure that easily passed, traditional party primaries will be replaced in 2011 with wide-open elections. The top two vote-getters — whatever their party, or if they have no party at all — will face off in the general election.”

Pro “Top Two” supporters, like Governor Arnold Schwarzenegger, argued that Proposition 14 would strengthen California democracy. The idea is, this change in election law, “would empower candidates who, because they refuse to pander to the party machines, are now reluctant to throw their hats into the ring.” The idea is that more moderates will be elected.

But those opposed to Proposition 14, like Ralph Nader, emphasized the opposite and warned that Proposition 14 would harm California democracy.  According to this “Stop Two” web-site, “Groups across the political landscape – from tea parties to labor unions to independents – opposed the antidemocratic measure because it will limit their November ballot choices to only two candidates. All six qualified parties in California opposed the measure.”

Nader responding to Proposition 14’s approval by stating, “The California Chamber of Commerce and other corporate interests have deceived enough voters in California to abolish the November elections for all but the two major parties. This is the latest manifestation of the business lobby’s antagonism to the core event of a democratic society – the November elections. What is next for their corporatist agenda against American democracy? ”

Longtime activist, Harry Kresky, wrote a thoughtful article in the Sacramento Bee, urging a “Yes” vote for Proposition 14. Kresky wrote, “Since Proposition 14 is an attempt to loosen the hold that the major parties have on our democracy by their iron-fisted control of the nominating process, it is no surprise that the major parties – whose tyranny Nader denounces – are doing everything they can to defeat it.”

Other excerpts from Kresky’s article:

  • Proposition 14 will give the 3,466,855 independent voters in California who are not enrolled in a political party the right to participate in the primary elections that determine who will appear on the general election ballot. If Prop. 14 passes, independents will be on equal footing with other voters.
  • Proposition 14 is an important step towards nonpartisan governance. Voters will be voting for candidates, not parties, and there is a real opportunity for coalitions of independents, parties (minor and major) and party members to join together to support reform-oriented candidates. Under Proposition 14, an effective coalition can propel a candidate not favored by the party establishment (major and minor) to round two, with a real chance to win.
  • For those concerned with party building – major or minor – having strong spokespersons in the first round will help parties enlarge their base, arguably much more effectively than running what often amount to fringe candidacies in the general election that do not have an impact on either the election or public policy.
  • Third-party advocates argue that they function as incubators for political and social change. Yet since World War II, social movements have been more effective in producing sweeping change than third parties.
  • The most effective way for “outsider” movements for innovation and progressive change to transform the political mainstream is for third parties and social reform groups to come together to nurture the development of a mass movement.
  • It’s particularly disturbing that at a moment when millions of independents are knocking at the door of an electoral process from which they are excluded, Ralph Nader and the third party movement would want to slam it shut.
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Special Democratic Primary — July 13 — Could Give Big Boost To Montgomery County Democrats

The special Democratic Primary, scheduled for July 13, to choose a Democratic candidate for Ohio’s 3rd Congressional District, could provide a big break for Montgomery County Democrats.

The thirty days allotted for this Primary campaign provides a big opportunity to show democracy in action.  It is a big opportunity to bring a whole new group of local Democrats into action within the local party.  It is a great opportunity to set in place the ideas and infrastructure needed to mount a serious challenge to the Republican incumbent in the 3rd District, Mike Turner.

Montgomery County Democrats should think big and find ways to work cooperatively in these thirty days.  I think it is a reasonable goal to set eight public meetings in various locations within the district.  The point of the meetings would be to communicate what I wrote two years ago — Mike Turner Is A Bum, For Our Democracy’s Sake, Let’s Throw The Bum Out — and, in addition, the point of the meetings would be to provide an opportunity for Democratic candidates to make the case of how, by what method, they would make a better representative than the current office holder.

The fact is, Mike Turner would be turned out from Congress — if our democracy had any guts.  Congress, after all, has a very low approval by the public.  Thoroughly partisan, Turner is a big part of the problem in Congress that people seek to change. He stays in office, because ours is a weak democracy.

The key issue of our day, I feel, is the incompetence of our democracy to actually solve problems.  As a nation, we are challenged to find our way to a great future and we do not have a government that seems to find its way.  We have no leadership and we have no system that seems to be providing leadership.

People want to see democracy in action and are sick of political machines and political bosses exerting control.  Democracy is the issue and this special Democratic Primary is a big opportunity to bring people into the local Democratic Party, a big opportunity to energize Democrats — via a display of active democracy.

It is active democracy, I feel, that could get citizens to drop their apathy and become energized.  It is my belief that the Montgomery County Democratic Party should be all about active democracy that pushed me to speak out at the recent Montgomery County Democratic Party Reorganization Meeting.  See: Proposal To Stop Democratic Primary Endorsements in Montgomery County Quashed At Reorganization Meeting.

I was disappointed that Dr. Mark MacNealy, after receiving the Democratic nomination in the May 4 primary, could not complete the race  for Ohio’s 3rd Congressional District.  I felt he would have made an excellent congressman.  The advice I gave to him, as to how he could defeat Congressman Turner, I believe applies to any possible Democratic candidate:  To Defeat Congressman Turner, Dr. MacNealy Must Emphasize His Commitment To Democracy

A commitment to democracy can be given a compelling credibility by the way candidates and the local Democratic Party use this Special Primary opportunity.

Because Dr. Mark withdrew, a special Democratic Primary to choose a candidate has been scheduled for July 13.  This Thursday, June 10, at 4:00 PM is the deadline for any potential candidate to file his or her petition.  To get on the ballot a candidate must file a petition with 50 verified signatures and must pay a fee of $85.

As of today, four Democrats have taken out petitions.  But, so far, only David Esrati of 113 Bonner St, 45410, has actually filed.  The other three 3rd Congressional District Democrats who have taken out petitions, but who, so far, have not filed, are:

  • Guy Fogle, 10484 South Union Rd., Dayton, 45342;
  • C. Roger Gollihugh, 4 Gunnington Ct., Springboro, 45016
  • Joe Roberts, 308 E. Dorothy Lane, Dayton, 45419
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