Tag Archives: recession

In Case you Still Think Obama’s Healthcare Plan is a Good Thing

Obama says The time for debate has ended but Pelosi says: “We Have to Pass the Bill So That You Can Find Out What Is In It.” If they do not know what is in the bill, how can the debate about it be over?

16,500 more IRS agents needed to enforce Obamacare

New tax mandates and penalties included in Obamacare will cause the greatest expansion of the Internal Revenue Service since World War II, according to a release from Rep. Kevin Brady, R-Texas.

A new analysis by the Joint Economic Committee and the House Ways & Means Committee minority staff estimates up to 16,500 new IRS personnel will be needed to collect, examine and audit new tax information mandated on families and small businesses in the ‘reconciliation’ bill being taken up by the U.S. House of Representatives this weekend. …

Scores of new federal mandates and fifteen different tax increases totaling $400 billion are imposed under the Democratic House bill. In addition to more complicated tax returns, families and small businesses will be forced to reveal further tax information to the IRS, provide proof of ‘government approved’ health care and submit detailed sales information to comply with new excise taxes.

Americans for Tax Reform has a good breakdown of the bill by the numbers.

Isn’t it reassuring that at a time of recession, government will do what’s necessary to ensure its growth?

Final health bill omits some of Obama’s promises

It was a bold response to skyrocketing health insurance premiums. President Barack Obama would give federal authorities the power to block unreasonable rate hikes.

Yet when Democrats unveiled the final, incarnation of their health care bill this week, the proposal was nowhere to be found.

Ditto with several Republican ideas that Obama had said he wanted to include after a televised bipartisan summit last month, including a plan by Sen. Tom Coburn of Oklahoma to send investigators disguised as patients to hospitals in search of waste, fraud and abuse.

And those “special deals” that Obama railed against and said he wanted to eliminate? With the exception of two of the most notorious — extra Medicaid money for Nebraska and a carve-out for Florida seniors faced with losing certain extra Medicare benefits — they are all still there.

For the White House, these were the latest unfulfilled commitments related to Obama’s health care proposal, starting with his campaign promise to let C-SPAN cameras film negotiations over the bill. Obama also backed down with little apparent regret on his support for a new government-run insurance plan as part of the legislation, a liberal priority. Full Story

Fact Sheet: The Truth About the Health Care Bill

The Firedoglake health care team has been covering the debate in congress since it began last year. The health care bill will come up for a vote in the House on Sunday, and as Nancy Pelosi works to wrangle votes, we’ve been running a detailed whip count on where every member of Congress stands, updated throughout the day.

We’ve also taken a detailed look at the bill, and have come up with 18 often stated myths about this health care reform bill.

Real health care reform is the thing we’ve fought for from the start. It is desperately needed. But this bill falls short on many levels, and hurts many people more than it helps.

A middle class family of four making $66,370 will be forced to pay $5,243 per year for insurance. After basic necessities, this leaves them with $8,307 in discretionary income — out of which they would have to cover clothing, credit card and other debt, child care and education costs, in addition to $5,882 in annual out-of-pocket medical expenses for which families will be responsible. Many families who are already struggling to get by would be better off saving the $5,243 in insurance costs and paying their medical expenses directly, rather than being forced to by coverage they can’t afford the co-pays on.

In addition, there is already a booming movement across the country to challenge the mandate. Thirty-three states already have bills moving through their houses, and the Idaho governor was the first to sign it into law yesterday. In Virginia it passed through both a Democratic House and Senate, and the governor will sign it soon. It will be on the ballot in Arizona in 2010, and is headed in that direction for many more. Republican senators like Dick Lugar are already asking their state attorney generals to challenge it. There are two GOP think tanks actively helping states in their efforts, and there is a booming messaging infrastructure that covers it beat-by-beat. Entire Article and Fact Sheet

See Also:

What the Liberal Media Aren’t Telling You About Obama’s Healthcare Plans for tons of links on the healthcare bill
Obama’s Health Care Plan Highlights- Read me and write your congressman and tell him vote NO
Healthcare Bill – HR3200

Related:
Buy Government Insurance or be Fined or Go to Jail
IRS Will Punish Americans Without Acceptable Health Insurance

‘A Crisis of Historic Proportions’

Unemployment moving map

The New Poor

Even as the American economy shows tentative signs of a rebound, the human toll of the recession continues to mount, with millions of Americans remaining out of work, out of savings and nearing the end of their unemployment benefits.

Economists fear that the nascent recovery will leave more people behind than in past recessions, failing to create jobs in sufficient numbers to absorb the record-setting ranks of the long-term unemployed.

Call them the new poor: people long accustomed to the comforts of middle-class life who are now relying on public assistance for the first time in their lives — potentially for years to come.

Yet the social safety net is already showing severe strains. Roughly 2.7 million jobless people will lose their unemployment check before the end of April unless Congress approves the Obama administration’s proposal to extend the payments, according to the Labor Department.

Here in Southern California, Jean Eisen has been without work since she lost her job selling beauty salon equipment more than two years ago. In the several months she has endured with neither a paycheck nor an unemployment check, she has relied on local food banks for her groceries.

She has learned to live without the prescription medications she is supposed to take for high blood pressure and cholesterol. She has become effusively religious — an unexpected turn for this onetime standup comic with X-rated material — finding in Christianity her only form of health insurance.

“I pray for healing,” says Ms. Eisen, 57. “When you’ve got nothing, you’ve got to go with what you know.”

Warm, outgoing and prone to the positive, Ms. Eisen has worked much of her life. Now, she is one of 6.3 million Americans who have been unemployed for six months or longer, the largest number since the government began keeping track in 1948. That is more than double the toll in the next-worst period, in the early 1980s.

Men have suffered the largest numbers of job losses in this recession. But Ms. Eisen has the unfortunate distinction of being among a group — women from 45 to 64 years of age — whose long-term unemployment rate has grown rapidly.

In 1983, after a deep recession, women in that range made up only 7 percent of those who had been out of work for six months or longer, according to the Labor Department. Last year, they made up 14 percent.

Twice, Ms. Eisen exhausted her unemployment benefits before her check was restored by a federal extension. Last week, her check ran out again. She and her husband now settle their bills with only his $1,595 monthly disability check. The rent on their apartment is $1,380.

“We’re looking at the very real possibility of being homeless,” she said.

Every downturn pushes some people out of the middle class before the economy resumes expanding. Most recover. Many prosper. But some economists worry that this time could be different. An unusual constellation of forces — some embedded in the modern-day economy, others unique to this wrenching recession — might make it especially difficult for those out of work to find their way back to their middle-class lives.

Labor experts say the economy needs 100,000 new jobs a month just to absorb entrants to the labor force. With more than 15 million people officially jobless, even a vigorous recovery is likely to leave an enormous number out of work for years.

Some labor experts note that severe economic downturns are generally followed by powerful expansions, suggesting that aggressive hiring will soon resume. But doubts remain about whether such hiring can last long enough to absorb anywhere close to the millions of unemployed.

A New Scarcity of Jobs

Some labor experts say the basic functioning of the American economy has changed in ways that make jobs scarce — particularly for older, less-educated people like Ms. Eisen, who has only a high school diploma.

Large companies are increasingly owned by institutional investors who crave swift profits, a feat often achieved by cutting payroll. The declining influence of unions has made it easier for employers to shift work to part-time and temporary employees. Factory work and even white-collar jobs have moved in recent years to low-cost countries in Asia and Latin America. Automation has helped manufacturing cut 5.6 million jobs since 2000 — the sort of jobs that once provided lower-skilled workers with middle-class paychecks.

“American business is about maximizing shareholder value,” said Allen Sinai, chief global economist at the research firm Decision Economics. “You basically don’t want workers. You hire less, and you try to find capital equipment to replace them.”

During periods of American economic expansion in the 1950s, ’60s and ’70s, the number of private-sector jobs increased about 3.5 percent a year, according to an analysis of Labor Department data by Lakshman Achuthan, managing director of the Economic Cycle Research Institute, a research firm. During expansions in the 1980s and ’90s, jobs grew just 2.4 percent annually. And during the last decade, job growth fell to 0.9 percent annually.

“The pace of job growth has been getting weaker in each expansion,” Mr. Achuthan said. “There is no indication that this pattern is about to change.”

Before 1990, it took an average of 21 months for the economy to regain the jobs shed during a recession, according to an analysis of Labor Department data by the National Employment Law Project and the Economic Policy Institute, a labor-oriented research group in Washington.

After the recessions in 1990 and in 2001, 31 and 46 months passed before employment returned to its previous peaks. The economy was growing, but companies remained conservative in their hiring.

Some 34 million people were hired into new and existing private-sector jobs in 2000, at the tail end of an expansion, according to Labor Department data. A year later, in the midst of recession, hiring had fallen off to 31.6 million. And as late as 2003, with the economy again growing, hiring in the private sector continued to slip, to 29.8 million.

It was a jobless recovery: Business was picking up, but it simply did not translate into more work. This time, hiring may be especially subdued, labor economists say.

Traditionally, three sectors have led the way out of recession: automobiles, home building and banking. But auto companies have been shrinking because strapped households have less buying power. Home building is limited by fears about a glut of foreclosed properties. Banking is expanding, but this seems largely a function of government support that is being withdrawn.

At the same time, the continued bite of the financial crisis has crimped the flow of money to small businesses and new ventures, which tend to be major sources of new jobs.

All of which helps explain why Ms. Eisen — who has never before struggled to find work — feels a familiar pain each time she scans job listings on her computer: There are positions in health care, most requiring experience she lacks. Office jobs demand familiarity with software she has never used. Jobs at fast food restaurants are mostly secured by young people and immigrants.

If, as Mr. Sinai expects, the economy again expands without adding many jobs, millions of people like Ms. Eisen will be dependent on an unemployment insurance already being severely tested.

“The system was ill prepared for the reality of long-term unemployment,” said Maurice Emsellem, a policy director for the National Employment Law Project. “Now, you add a severe recession, and you have created a crisis of historic proportions.”

Fewer Protections

Some poverty experts say the broader social safety net is not up to cushioning the impact of the worst downturn since the Great Depression. Social services are less extensive than during the last period of double-digit unemployment, in the early 1980s.

On average, only two-thirds of unemployed people received state-provided unemployment checks last year, according to the Labor Department. The rest either exhausted their benefits, fell short of requirements or did not apply.

“You have very large sets of people who have no social protections,” said Randy Albelda, an economist at the University of Massachusetts in Boston. “They are landing in this netherworld.”

When Ms. Eisen and her husband, Jeff, applied for food stamps, they were turned away for having too much monthly income. The cutoff was $1,570 a month — $25 less than her husband’s disability check.

Reforms in the mid-1990s imposed time limits on cash assistance for poor single mothers, a change predicated on the assumption that women would trade welfare checks for paychecks.

Yet as jobs have become harder to get, so has welfare: as of 2006, 44 states cut off anyone with a household income totaling 75 percent of the poverty level — then limited to $1,383 a month for a family of three — according to an analysis by Ms. Albelda. Full Story

Bulldozing U.S. Cities Back to Nature

US cities may have to be bulldozed in order to survive

Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic “shrink to survive” proposals being considered by the Obama administration to tackle economic decline.

00008684-NAA-Sense of Community-001

The government looking at expanding a pioneering scheme in Flint, one of the poorest US cities, which involves razing entire districts and returning the land to nature.

Local politicians believe the city must contract by as much as 40 per cent, concentrating the dwindling population and local services into a more viable area.

The radical experiment is the brainchild of Dan Kildee, treasurer of Genesee County, which includes Flint.

Having outlined his strategy to Barack Obama during the election campaign, Mr Kildee has now been approached by the US government and a group of charities who want him to apply what he has learnt to the rest of the country.

Mr Kildee said he will concentrate on 50 cities, identified in a recent study by the Brookings Institution, an influential Washington think-tank, as potentially needing to shrink substantially to cope with their declining fortunes.

Most are former industrial cities in the “rust belt” of America’s Mid-West and North East. They include Detroit, Philadelphia, Pittsburgh, Baltimore and Memphis.

In Detroit, shattered by the woes of the US car industry, there are already plans to split it into a collection of small urban centres separated from each other by countryside.

“The real question is not whether these cities shrink – we’re all shrinking – but whether we let it happen in a destructive or sustainable way,” said Mr Kildee. “Decline is a fact of life in Flint. Resisting it is like resisting gravity.” Full Story

U.S. Children Sinking into Poverty

ECONOMY-US: One in Five Children Sinking Into Poverty

U.S. children’s quality of life is expected to decline through 2010 due to the impacts of the financial crisis, said a new report by the Foundation for Child Development (FDC), released on Wednesday.

pov

According to the report, progress in U.S. children’s quality of life has fluctuated since 2002, and began a decline in 2008 as a result of the recession.

The Child Well-Being Index (CWI) is an annual evidence-based composite measure of trends over time in the quality of life for U.S. children from birth to age 18 conducted by Duke University’s Foundation for Child Development Child and Youth Well-Being Index Project. It tracks changes as compared to 1975 base year values.

This year, the Project also produced a Special Focus Report that offers projections of the impact the recession is likely to have on children’s well-being through 2010, based on analysis of past recessions.

“America is doing a really bad job relative to other countries,” said Reihan Salam, a fellow at the New America Foundation, referring to the well-being of U.S. children.

According to the CWI, although the recession is predicted to end in 2010, the well-being of children is not expected to improve during that time period.

The percentage of children in poverty is expected to peak at 21 percent and more than eight million children, or 27 percent, are expected to have at least one parent working full-time year-round in 2010. Full Story

‘The Impoverishment of Many to Satisfy the Greed of a Few’

Amnesty International Report 2009

IT’S NOT JUST THE ECONOMY, IT’S A HUMAN RIGHTS CRISIS

In September 2008 I was in New York to attend the UN high-level meeting on the Millennium Development Goals (MDGs), the internationally agreed targets to reduce poverty by 2015. Delegate after delegate talked about the need for more funds to eradicate hunger, to cut preventable deaths of infants and pregnant women, to provide clean water and sanitation, to educate girls. The life and dignity of billions of people were at stake, but there was only limited will to back up the talk with money. As I left the UN building I could see the ticker tapes running a very different story coming from another part of Manhattan: the crash of one of the largest investment banks on Wall Street. It was a telling sign of where world attention and resources were really focused. Rich and powerful governments were suddenly able to find many more times the sums that could not be found to stem poverty. They poured them with abundance into failing banks and stimulus packages for economies that had been allowed to run amok for years and were now running aground.

By the end of 2008, it was clear that our two-tier world of deprivation and gluttony – the impoverishment of many to satisfy the greed of a few – was collapsing into a deep hole.

As with the case of climate change, so too with global economic recession: the rich are responsible for most of the damaging action, but it is the poor who suffer the worst consequences. While no one is being spared the sharp bite of the recession, the woes of the rich countries are nothing compared with the disasters unfolding in poorer ones. From migrant workers in China to miners in Katanga in the Democratic Republic of the Congo (DRC), people desperately trying to drag themselves out of poverty are feeling the brunt sharply. The World Bank has predicted 53 million more people will be thrown into poverty this year, on top of the 150 million hit by the food crisis last year, wiping out the gains of the last decade. International Labour Organization figures suggest that between 18 and 51 million people could lose their jobs. Skyrocketing food prices are leading to more hunger and disease, forced evictions and foreclosures to more homelessness and destitution.

“The world needs a different kind of leadership, a different kind of politics as well as economics – something that works for all and not just for a favoured few.”

While it is too early to predict the full impact on human rights of the profligacy of recent years, it is clear that the human rights costs and consequences of the economic crisis will cast long shadows. It is also clear that not only have governments abdicated economic and financial regulation to market forces, they have failed abysmally to protect human rights, lives and livelihoods.

Billions of people are suffering from insecurity, injustice and indignity. This is a human rights crisis. Full Story

U.S. Towns Want to Dissolve, Disincorporate

Towns Rethink Self-Reliance as Finances Worsen

As the recession batters city budgets around the U.S., some municipalities are considering the once-unthinkable option of dissolving themselves through “disincorporation.”

Benefits of this move vary from state to state. In some cases, dissolution allows residents to escape local taxes. In others, it saves the cost of local salaries and pensions. And residents may get services more cheaply after consolidating with a county.

In Mesa, Wash., a town of 500 residents about 250 miles east of Portland, Ore., city leaders have initiated talks with county officials about the potential regional impact of disincorporating. Mesa has been hit by a combination of the recession and lawsuits that threaten its depleted coffers, leaving few choices other than disincorporation, said Robert Koch, commissioner of Franklin County, where Mesa is located.

Two California towns, Rio Vista and Vallejo, have said they may need to disincorporate to address financial difficulties; Vallejo filed for bankruptcy protection last year. Civic leaders in Mountain View, Colo., have alerted residents that they are left with few options but to disincorporate because the town can’t afford to pay salaries and services.

Incorporation brings residents a local government with the ability to raise money through taxes and bond issuances. It also gives them more control of zoning decisions and development, and usually provides for local services such as trash pickup and police as well. Full Article

G20 – A New World Order for Global Recovery

Obama hails the new world order

Gordon Brown declared that a $1 trillion package to stimulate economic growth agreed at yesterday’s G20 summit in London will ensure that the world pulls out of recession more quickly.

Speaking after the one-day summit of the world’s richest nations in the Docklands, the Prime Minister said there were “no quick fixes”, adding: “Today’s decisions will not immediately solve the crisis. But we have begun the process by which it will be solved.”

He said: “This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform and with a clear timetable for its delivery.”

The US President Barack Obama played a key role in brokering the agreement, resolving tensions between China and France on tax havens. The $1trn will be made available to countries that run into trouble via the International Monetary Fund (IMF), the World Bank and World Trade Organisation, which will all be beefed up.

Half the money will come from IMF loans, with $250bn to finance trade deals and a further $250bn from the IMF’s currency reserve.
Full Story

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Please see Funding the IMF for the ‘New World Order’ for more information on how the megalomania’s IMF and the World Bank bring destruction in their ‘loaning’ of money.