Republican Gridlock & Obstructionism

Like I keep saying, the GOP’s main priority is helping Americans regain their jobs doing what they can prevent Obama from being reelected.  The last thing they want is a healthier economy going into the 2012 elections, as they are banking on a bad economy to blame President Obama for (and a voting population to vote along those lines).  Whether it’s switching to false crisis’ like the debt or manufactured “scandals” like Solyndra, helping Americans regain their jobs is the least of the GOP’s priorities.

Te Party Nation founder Judson Phillips has openly encouraged small businesses to stop hiring. Senate Majority Leader Mitch McConnell has openly stated that preventing an Obama re-election is his single most important goal.

 

Below is a timeline of Republican Obstructionism (Click to enlarge)

republican / GOP Job / economic plan for 2012

Posted in Jobs and Economic Recovery 2012 | Leave a comment

Google Searches: Occupy Wall Street > Tea Party

According to Google Politics & Elections Blog, Google searches for Occupy Wall Street resoundingly topple the amount of Google searches for Tea Party.

The blog post states:

Despite big leads in polls and search traffic for Occupy Wall Street, it is almost in a dead heat with the Tea Party for the volume of news coverage. Using Advanced Search in Google News we found that between October 7 and last week, Occupy Wall Street only barely bests the Tea Party when we examine the number of news pieces covering each movement: 29,000 to 22,000.

Here is a screenshot from Google Insights:

google searches - occupy wall street vs tea-party

 

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Robert Reich Addresses several Lies about Taxes and Economics

Robert Reich on the 7 biggest lies on taxes, the economy and more.

Below is an expansion of what Robert Reich so effectively stated and illustrated in an amazing 2 minutes.

1-Tax Cuts one the Rich Trickle Down to the rest of us
2-High taxes on the rich hurt the economy

This is one of the staples of the Republican parties.  Their claim is that cutting taxes on the rich (and for that matter, corporations) will free up capital that will magically find its way back into the economy in the form of investment and hiring.  Aside from being demonstrably false (see charts below), it also makes the false assumption that tax rates are what drive or divert hiring and other investments.  In reality, more important market signals like demand are what drive these, regardless of tax rates.  Cutting taxes on the rich and corporations has done nothing to boost GDP growth.  Rather, the added streams of revenue have simply increased profits and increased wealth disparity here in the US.

The middle class we we know/knew it was created during a time of higher tax rates on the rich and has largely disappeared with lowered tax rates.

wealth disparity  in america and taxes on the rich

There exists a correlation between tax cuts on the rich and a growing wealth disparity.

Wealth inequality - richest 1 percent

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End the Fed and Return to the Gold Standard!?

Ron Paul and his small army of internet puppets want us to believe that our problems are due to the federal reserve and the switch from a gold standard to a fiat currency.  The claim here is that not being backed by gold, our currency is too unstable and that the Federal reserve has only served to create bubbles which eventually burst.  However, this is very little in the way of actual evidence for this.  The longer the Fed has been in existence, the more stable the economy has been.  Likewise, the business cycle was far more volatile before the US abandoned the gold standard altogether (“End the Fed” proponents seem to believe that speculative bubbles didn’t exist before central banking).

gold standard & end the fed & business cycle Continue reading

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Occupy Wall Street (OWS) vs The Tea Party: A Brief Comparison

Occupy Wall Street (OWS) vs The Tea Party: Why Occupy Wall Street is not the same

occupy wall street vs tea party - comparisonThe Occupy Wall Street (OWS) protests have already drawn comparisons to the Tea Party.  Is it fair to compare these two? No!  The Occupy Wall Street protestors are angry for the right reasons (and have racked up impressive endorsements from people like Suze Orman and Howard Buffett and whereas the Tea Party is angry over their misguided notion of taxes and government.  Both claims to want “take the power back.”  But whereas the Tea Party has a simplistic “taxes and government are the problem” mantra we often see coming from the angry right, the Occupy Wall Street protesters realize that it’s corporate special interests that have filled the political power vacuum (a vacuum that exists largely because everyday people either haven’t participated in the Democratic process or, like the Tea Party, allow themselves to be blindly led by said corporate interests and unwittingly act against their own best interests).  Whereas the Tea Party protests appear to be an 8-5 affair where protestors hold up signs (often racist) and speak out against government then go home (and enjoy their social security and Medicare benefits), the OWS movement appears to be a 24/7 affair, with protesters camping in public areas in financial districts. Continue reading

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Tea Party Zombies Must Die: Review

An online game known as Tea Party Zombies Must Die has stirred a little bit of controversy (at least in conservative circles).  The game somewhat resembles Nazi Zombies from the Call of Duty games where your character has to defend himself from various zombies and move on to other areas. I played for a few minutes and eventually got to the Fox News station (when entering, you see a message saying something to the effect “Opinion journalism masquerading as legitimate news”).

http://teapartyzombiesmustdie.com/

I have mixed feelings on this.  While I certainly understand the sentiment, I can’t help but wonder if this plays a little too much into the hands of the belligerent tea party mentality.  Keith Olbermann has criticized this game, urging people to boycott the game producer.

On a more amusing note: it’s interesting to read accusations from conservative mouthpieces, claiming that hypocrisy from liberals who are supposedly against this sort of thing.  This game was designed by a single game developer in New York.  And yet, from the ranting I am seeing, this something “liberals have done.”  This reminds me of Bill O’Reilly’s Culture Warrior whereby a few select (and small) anecdotal examples apparently represent large organized movement by secular progressives to undermine America’s cultural heritage.  I am guessing this game will make its way into his next book (since he himself is in the game) as yet “another example of liberals out to destroy all that’s good with America.”  This is the sort of exaggerated nonsense right wing media and pundits thrive on.

 

Here are a couple of  screenshots.

tea party zombies screenshot pissed off socialism Continue reading

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Energy Dependence: The Free Market won’t solve this

solar panels sunOne of the current debates taking place in Congress (and has been for some time) is how to solve our energy crisis (both in relation to climate change, as well as our dependence on foreign suppliers, many of whom support terrorist organizations–which means we end up being de facto subsidizers of said organizations).  Because a market for alternative energies doesn’t really exist, this leaves the government as a source of R&D.  Naturally, small government/free market proponents don’t like the prospect of more government involvement which leaves them to either deny climate change altogether (surprise), or at the very least. claim that the green/alternative technology is best left to private enterprise. Continue reading

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Ron Paul 2012: Ron Paul on the Economy & Federal Reserve

Ron Paul’s Policies

Ron Paul is a bit of a phenomenon.  His message of expanding personal freedoms and getting government out of the way in order to let free enterprise thrive certainly hits home with many people (who isn’t in favor of expanding personal freedoms and a healthier economy?).  However, while he has certainly gathered an enthusiastic (largely young) fan base, the disconnect between the rhetoric and the reality of his policies continues to keep him from becoming a true GOP contender.

Ron Paul on Personal Liberty and Civil Rights Act of 1964

Ron Paul’s vision of personal freedoms is highly subjective.  His idea of personal freedoms simply means the federal government shouldn’t have a say in private matters (ie. gay marriage, drug use, abortion, even segregation).  What this means is, women’s rights to choose is up to the state.  If California wants to allow abortions while Texas wants to completely ban them, that is a state matter and the federal government should have no right to overrule Texas law.  Likewise with drug use and even segregation.  In fact. Ron Paul openly opposes the Civil Rights Act of 1964.  What all this translates to is that Ron Paul doesn’t feel that the federal government should have a say in matters of personal freedoms.  States themselves can have their say. Continue reading

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Fannie & Freddie Mac & CRA didn’t cause the Mortgage Crisis

The busting of the housing bubble has been met with much finger-pointing.  Advocates of smaller government and an unfettered free market have been quick to blame Fannie & Freddie and the Community Reinvestment Act, claiming that this is ‘another example’ of government incompetence.  The argument of course, is that Fannie & Freddie (nationalized banks) made bad loans and the CRA pushed (if not forced) private lenders to make loans to borrowers who, under normal lending standards, would not qualify for loans.

The problem with this argument is that it was not GSE’s (Government-Sponsored Enterprise) like Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) that made the bulk of these loans, but rather private lenders in a less regulated sector (and therefore not subject to the CRA).

A study by the Joint Center for Housing Studies Harvard University on the Subprime Lending and the Community Reinvestment Act concluded that: data provided by the Home Mortgage Disclosure Act (HMDA) reveal that loans covered by the CRA accounted for only a fraction of mortgage lending to lower-income borrowers and neighborhood Continue reading

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Do Tax Cuts Increase Revenues? No, Tax cuts do not Increase Revenue

Business Cycles: GDP and Revenues Correlating Tax Rates with Revenue
Reagan TaxCuts: The Facts
Bush Tax Cuts: The Facts
Historical Tax Rates
The Laffer Curve
In Conclusion
Further Reading
Limbaugh Tax cuts increase revenues
“The Bush tax cuts led to 50 consecutive months of job growth…It’s demonstrably proven that tax cuts increase revenues” – Rush Limbaugh

The argument that tax cuts create or increase revenue is an old myth that simply refuses to go away. The logic behind this argument is that cutting taxes will stimulate spending (since investors now are  now encouraged through reduced tax rates) that will result in GDP growth.  This growth in GDP will result in increased tax revenues so significant that they will more than offset the drop in tax revenues that result from a lowered tax rate. The inverse to this is that increased taxes lower tax revenue by discouraging investment, which in turn lowers tax revenues so drastically, that they offset the added increase coming from the tax rate increase. One of the reasons Republicans and other self-ascribed fiscal conservatives are able to get away with this is, is the superficially plausible argument that the Reagan and/or Bush tax cuts grew the economy and created revenue.  To understand the fallacy of these arguments, it is necessary to understand economic growth during business cycles and over a long period of time, and how this affects tax revenues.

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