Category Archives: Economy

Economy, Green Jobs, Infrastructure, Militarism

Military spending is not right way to boost America’s economic security

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By Michael Shank& Elizabeth Kucinich

Beaver County Blue via Fox News Opinion

May 15, 2013 – That Washington is holding defense cuts responsible for slow economic growth is a specious argument at best. War spending is unproductive and inflationary. Modern defense costs are capital intensive, not labor intensive, making the industry inefficient as a job creator.

The defense industry has a presence in congressional districts across this country, so cuts affect every member. But every district in the U.S. has pressing infrastructure, education, health and environmental needs, and the return on the taxpayer’s dollar is much higher when invested on these areas.
Instead of concentrating money on capital intensive, military hardware purposed for destruction, and causing long term economic drain, our very limited and valuable economic resources should be invested in building the true strength and capacity of our economy, our nation, and her people.

During the heightened banking crisis in 2009, Rep. James Oberstar, then Chair of House Transportation Committee, called for a massive Eisenhower-level of investment in transportation infrastructure. He was right.

The American Society of Civil Engineers estimates that the U.S. requires $3.6 trillion in infrastructure investment by 2020 to bring our grade D+ standards to safe standards.

This is exactly what we need: to put bridge-builders to work rather than funding technology and personnel to destroy bridges, and to take tank-making factories and repurpose them to build high-speed trains.
In prioritizing military spending, Congress is cutting the very programs that can actually strengthen our economy: Cutting federal assistance to the states, forcing them to lay off teachers, firefighters, and social workers; cutting opportunities for job creation, training, and placement programs; and eviscerating funding for children’s programs and assistance for seniors.

These actions make no economic sense.

Continue reading Military spending is not right way to boost America’s economic security →

Economy, labor, Manufacturing

Micro Manufacturing, Third Wave Style…Perfect for Worker Coops?

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In the Next Industrial Revolution, Atoms Are the New BitsPhoto: Dan Winters

By Chris Anderson

SolidarityEconomy.net via Wired Magazine

Jan. 25, 2010 – In an age of open source, custom-fabricated, DIY product design, all you need to conquer the world is a brilliant idea.
Photo: Dan Winters

The door of a dry-cleaner-size storefront in an industrial park in Wareham, Massachusetts, an hour south of Boston, might not look like a portal to the future of American manufacturing, but it is. This is the headquarters of Local Motors, the first open source car company to reach production. Step inside and the office reveals itself as a mind-blowing example of the power of micro-factories.

In June, Local Motors will officially release the Rally Fighter, a $50,000 off-road (but street-legal) racer. The design was crowdsourced, as was the selection of mostly off-the-shelf components, and the final assembly will be done by the customers themselves in local assembly centers as part of a “build experience.” Several more designs are in the pipeline, and the company says it can take a new vehicle from sketch to market in 18 months, about the time it takes Detroit to change the specs on some door trim. Each design is released under a share-friendly Creative Commons license, and customers are encouraged to enhance the designs and produce their own components that they can sell to their peers.

The Rally Fighter was prototyped in the workshop at the back of the Wareham office, but manufacturing muscle also came from Factory Five Racing, a kit-car company and Local Motors investor located just down the road. Of course, the kit-car business has been around for decades, standing as a proof of concept for how small manufacturing can work in the car industry. Kit cars combine hand-welded steel tube chassis and fiberglass bodies with stock engines and accessories. Amateurs assemble the cars at their homes, which exempts the vehicles from many regulatory restrictions (similar to home-built experimental aircraft). Factory Five has sold about 8,000 kits to date.

One problem with the kit-car business, though, is that the vehicles are typically modeled after famous racing and sports cars, making lawsuits and license fees a constant burden. This makes it hard to profit and limits the industry’s growth, even in the face of the DIY boom.

Jay Rogers, CEO of Local Motors, saw a way around this. His company opted for totally original designs: They don’t evoke classic cars but rather reimagine what a car can be. The Rally Fighter’s body was designed by Local Motors’ community of volunteers and puts the lie to the notion that you can’t create anything good by committee (so long as the community is well managed, well led, and well equipped with tools like 3-D design software and photorealistic rendering technology). The result is a car that puts Detroit to shame.

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Economy, Green Jobs, Infrastructure, unemployment

Filling the ‘Green Jobs’ Bucket Needs More Than a Slow Dribble…

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Monongahela locks and dams would get $2 million from spending plan

By Len Boselovic

Pittsburgh Post-Gazette

April 12, 2013 – President Barack Obama’s $3.8 trillion budget proposal calls for imposing annual per-vessel fees on the barge industry to pay for an $8 billion backlog in delayed and over-budget projects, including replacing aging locks and dams on the Monongahela River.

The White House proposal comes as a measure by Sen. Bob Casey, D-Pa., to bolster funding for the work and shift more of the costs to taxpayers could be taken up by the U.S. Senate as early as next week.

The budget proposal Mr. Obama submitted Wednesday includes $4.7 billion for the U.S. Army Corps of Engineers civil works program, which includes operating, maintaining and replacing more than 200 locks and related dams on the nation’s rivers. That is nearly 6 percent less than was called for in the last budget Congress approved for the fiscal year that ended in September.

The $4.7 billion includes $2 million for replacing locks and dams on the Monongahela River at Braddock, Charleroi and Elizabeth, a project that typifies the delays and cost overruns plaguing the nation’s deteriorating locks and dams.

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Economy, Green Energy, Green Jobs, Organizing, Poverty, unemployment

The Next ‘American Revolution’ Already Starting in Cleveland, Cincinnati and a Few Other Places Around Here…

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budget crisis, Democrats, Economy, GOP, Infrastructure, Tax Policy, Wall Street

Progressive ‘Back to Work’ Budget Wins Praise for Anti-Austerity Approach

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‘A reminder that we don’t need to cut teachers and school lunches when we can eliminate wasteful giveaways to fossil fuel corporations.’  Watch Rep. Keith Ellison introduce the budget here:

By Jon Queally 
Beaver County Blue via CommonDreams.org

March 14, 2013 – In the midst of ongoing hysteria about a ‘non-existent deficit crisis’ in Washington, the Congressional Progressive Caucus on Wednesday unveiled an alternative approach to destructive austerity economics by releasing their ‘Back to Work Budget’ plan for 2014.

Pushing back specifically on the dominant talking point of inside-the-Beltway elites, the budget challenges the idea that cutting programs, reducing corporate tax rates, and slashing investments is a pathway to economic prosperity. Its proponents argue the US does not have "a deficit crisis"—as those pushing for steep cuts suggest—but rather, "a jobs crisis."

Presented by CPC co-chairs Reps. Raúl M. Grijalva and Keith Ellison and backed by members of the caucus’ Budget Task force—Reps. Jim McDermott, Jan Schakowsky, Barbara Lee and Mark Pocan—the plan describes how smart investments, not deep cuts to key programs, would create almost 7 million jobs over the first year of its implementation.

“Americans face a choice,” Grijalva and Ellison said. “We can either cut Medicare benefits to pay for more tax breaks for millionaires and billionaires, or we can close outdated tax loopholes and invest in jobs. We choose investment.”

They continue:

    The Back to Work Budget invests in America’s future because the best way to reduce our long-term deficit is to put America back to work. In the first year alone, we create nearly 7 million American jobs and increase GDP by 5.7%. We reduce unemployment to near 5% in three years with a jobs plan that includes repairing our nation’s roads and bridges, and putting the teachers, cops and firefighters who have borne the brunt of our economic downturn back to work. We reduce the deficit by $4.4 trillion by closing tax loopholes and asking the wealthy to pay a fair share. We repeal the arbitrary sequester and the Budget Control Act that are damaging the economy, and strengthen Medicare and Medicaid, which provide high quality, low-cost medical coverage to millions of Americans when they need it most. This is what the country voted for in November. It’s time we side with America’s middle class and invest in their future.

Received as a breath of fresh air of economic sanity, the plan was praised by a variety of individuals and groups.

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Economy, Poverty, trade unions

Why We Need More Unions and Higher Wages

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Typical Pennsylvania Wage is too Little to Pay the Average Rent

By Tim Grant
Pittsburgh Post-Gazette

March 13, 2013 – When a basic two-bedroom apartment in Pennsylvania costs an average $895 a month, renters must earn at least $17.21 an hour — 2.4 times the state minimum wage — to afford a decent roof over their heads.

Although the cost of renting a two-bedroom unit in the Pittsburgh region is lower at $772 a month, Pittsburgh households still must earn about $14.85 an hour to afford the apartment, which amounts to more than twice the state minimum wage and 117 percent of what the average city renter earns.

An estimated 56 percent of Pittsburgh-area renters cannot afford to meet the expenses for a two-bedroom apartment.

"The [typical] renter’s hourly wage in Pittsburgh is $12.70. That means the most they could afford to pay is $660 a month in rent," said Liz Hersh, executive director of the Housing Alliance of Pennsylvania. Her estimate is based on renters paying no more than one-third of their income on rent and utilities.

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Economy, GOP, Poverty, safety net

GOP Worships the ‘Hand,’ Disrespects Those Who Work With Them

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By Leo Gerard
Beaver County Blue via HuffPost

March 4, 2013 – The invisible hand of the market, which the GOP worships as an infallible god, is curled into a fist and is pounding America’s lowest-paid workers.

Those workers have complained about the grinding poverty level of minimum wage. Wal-Mart warehouse workers and New York fast food workers recently demonstrated. They’re fed up. Well, they would be if they could afford enough to eat. President Obama responded, asking Congress to raise the minimum wage, which was last increased to $7.25 an hour in 2009.

Republicans, the party of NO, replied to Obama’s request with a surly, "No way!" Respect the hand, they said, referring to their beloved spectral regulator of the market. Government, Republicans said, must not tell business what to do, must not "burden" business by requiring it to pay a little more. Republicans never mention the burden under which 18 million minimum wage workers struggle, working full-time for $15,080 a year, barely enough to feed, clothe and house themselves. That’s because Republicans revere non-humans — corporations and invisible hands — while denigrating and disrespecting humans who work with their hands to serve food, care for the elderly and stock shelves.

The disrespect could be heard in Republican presidential nominee Mitt Romney’s voice as he derided 47 percent of all Americans as "takers." That huge number Romney despises includes minimum wage workers – 84 percent of whom are 20 or older — whose children receive immunizations and antibiotics through Medicaid because employers paying minimum wage virtually never provide health insurance.

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Economy, health care, Poverty, safety net, Seniors, social security, unemployment

US Capitalism Redistributing Wealth ‘Upward’

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Nine Economic Facts That Will Make Your Head Spin

By Lynn Stuart Parramore
Beaver County Blue via Alternet.org

Feb 18, 2013  |  How much will you need for medical expenses in retirement? What does it cost to keep 2.5 million Americans behind bars? Here are a few facts and figures that might surprise you.

1. Recovery for the rich, recession for the rest.

Economic recovery is in rather limited supply, it seems. Research by economist Emmanuel Saez shows that the top 1 percent has enjoyed income growth of over 11 percent [3] since the official end of the recession. The other 99 percent hasn’t fared so well, seeing a 0.4 percent decline in income.

The top 10 percent of earners hauled in 46.5 percent of all income in 2011, the highest proportion since 1917 – and that doesn’t even include money earned from investments. The wealthy have benefitted from favorable tax status and the rise in stock prices, while the rest have been hit with a continuing unemployment crisis that has kept wages down. Saez believes this trend will continue in 2013.

2. Half of us are poor or barely scraping by.

The latest Census Bureau data shows that one in two Americans currently falls into either the “low income” category or is living in poverty. Low-income is defined as those earning between 100 and 199 percent of the poverty level. Adjusted for inflation, the earnings for the bottom 20 percent of families have dropped from $16,788 in 1979 to just under $15,000. Earnings for the next 20 percent have been stuck at $37,000.

States in the South and West had the highest proportion of low-income families, including Arizona, New Mexico and South Carolina, where politicians are eagerly shredding the social safety net.

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Banks, Democrats, Economy, PDA

Why We Like Elizabeth Warren!

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Elizabeth Warren Grills Banking Regulators at First Hearing

By Rachel Rose Hatman

Yahoo News

Democrats eager to see consumer champion Elizabeth Warren take Wall Street’s biggest banks to task got their wish on Thursday when the newly elected Democratic senator made her debut at a Senate Banking Committee hearing.

"What I’d like to know is tell me a little bit about the last few times you’ve taken the biggest financial institutions on Wall Street all the way to a trial," the Massachusetts lawmaker said to applause, speaking to the federal regulators gathered for a hearing on Wall Street reform.

No witnesses spoke up.

Warren raised her eyebrows. "Anybody?" she asked.

Thomas Curry, head of the Office of the Comptroller of the Currency, spoke up: "We’ve actually had a fair number of consent orders. We do not have to bring people to a trial…"

"I appreciate that you say you don’t have to bring them to trial," Warren said. "My question is, when did you bring them to trial?"

"We have not had to do it as a practical matter to achieve our supervisory goals," Curry said.

Warren moved on to the rest of the panel, knowing full well that none of the regulators present have brought a Wall Street bank to trial.

"I’m really concerned that ‘too big to fail’ has become ‘too big for trial,’" Warren later said.

Warren ousted Republican Sen. Scott Brown in November in a hard-fought campaign. She was President Barack Obama’s first pick in 2011 to head up the government’s newly established Consumer Financial Protection Bureau, an entity the former Harvard University law professor and attorney helped create. But Republicans in Washington essentially killed her nomination, citing her record of taking on big banks and Wall Street. That opposition helped boost Warren’s reputation and led Democrats nationwide to embrace her decision to run for U.S. Senate.

Debt, Economy, unemployment, Wall Street, Youth and students

Usurious Credit and Debt as Our Prison Cages

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Breaking the Chains of Debt Peonage

By Chris Hedges
Truthdig.com

Feb 3, 2013 – The corporate state has made it clear there will be no more Occupy encampments.

The corporate state is seeking through the persistent harassment of activists and the passage of draconian laws such as Section 1021(b)(2) of the National Defense Authorization Act—and we will be in court next Wednesday to fight the Obama administration’s appeal of the Southern District Court of New York’s ruling declaring Section 1021 unconstitutional—to shut down all legitimate dissent.

The corporate state is counting, most importantly, on its system of debt peonage to keep citizens—especially the 30 million people who make up the working poor—from joining our revolt.

Workers who are unable to meet their debts, who are victimized by constantly rising interest rates that can climb to as high as 30 percent on credit cards, are far more likely to remain submissive and compliant.

Debt peonage is and always has been a form of political control. Native Americans, forced by the U.S. government onto tribal agencies, were required to buy their goods, usually on credit, at agency stores. Coal miners in southern West Virginia and Kentucky were paid in scrip by the coal companies and kept in perpetual debt servitude by the company store. African-Americans in the cotton fields in the South were forced to borrow during the agricultural season from their white landlords for their seed and farm equipment, creating a life of perpetual debt. It soon becomes impossible to escape the mounting interest rates that necessitate new borrowing.

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