Showing posts with label Franklin Delano Roosevelt. Show all posts
Showing posts with label Franklin Delano Roosevelt. Show all posts

Wednesday, September 15, 2010

Frank Rich on the Necessity for President Obama To Stand Up To the Right and Not Fear Its Opposition

http://www.nytimes.com/2010/09/12/opinion/12rich.html?_r=1&ref=general&src=me&pagewanted=all

Hey Amiri,

I'm in complete agreement with Frank Rich because it's the truth...Read article below...If FDR could decisively stand up to and stare down his opponents Obama can at least do the same and we should all demand that he does...

Kofi


OP-ED COLUMNIST

Time for This Big Dog to Bite Back

By FRANK RICH
September 11, 2010
New York Times

NO, he can’t. President Obama can’t reverse the unemployment numbers by Election Day. He can’t get even a modest new stimulus bill past the Party of No, and even if he could, there would be few jobs to show for it until (maybe) 2011. Nor can he rewrite the history of his administration. Its signal accomplishments to date are an initial stimulus package that was overrun by the calamity at hand and a marathon health care battle as yet better known for its unseemly orgy of backroom wrangling than its concrete results. While that brawl raged, the White House seemed indifferent to the mounting number of Americans being tossed onto the Great Recession scrapheap.

And so the odds that Obama’s party will survive the midterms seem less than Indiana Jones’s in the Temple of Doom — as we are reminded hourly by the Beltway herd flogging the latest polls. The Democrats are facing a “historic” rout, an earthquake, a tidal wave — well, you know the drill. End of story.

Unless it’s not. On Labor Day, the fighting Obama abruptly re-emerged, a far cry from the man whose Oval Office address on Iraq days earlier was about as persuasive as a hostage video. Speaking to workers in Milwaukee, the president finally started giving voice to the anger of America’s battered middle class. And he even let loose with a little anger of his own. The unspecified “powerful interests” aligned against him, he said, “talk about me like a dog.”

That inelegant line — “not in my prepared remarks,” Obama explained — landed because it was true and because he said it with a grin. Americans like their warriors happy, not petulant (cf, “You’re likable enough, Hillary”).

For a guy facing a tidal wave, the president was so ebullient, you had to wonder if he knew something we didn’t. Maybe he simply read the unabridged poll numbers rather than the CliffsNotes summaries of cable news. Those numbers are hardly as monochromatic as advertised. Obama’s approval rating, for months a consistent (not imploding) 45-ish percent, still makes him arguably America’s most popular national politician. The polls also continue to show that, while both political parties are despised, Democrats are slightly less despised than Republicans. In The Wall Street Journal/NBC News poll, for instance, 36 percent of those surveyed rate the Democrats positively, compared with the G.O.P.’s 30 percent. It’s only when the November horse-race matchup is limited to “likely voters” that the tidal wave rolls in, giving the Republicans a roughly 10-point lead.

That spread is the Democrats’ dread “enthusiasm gap.” And since that gap can’t be bridged in two months by new government programs or divine intervention for the nearly one in six Americans who are un- or underemployed, what could give the Democrats even a slender reed of hope? If there’s any plausible answer, it can be drawn from the single poll finding that is most devastating for Obama, the question (as worded by The Washington Post/ABC News) of whether “he understands the problems of people like you.” There his numbers really have imploded. When he arrived in office, 72 percent answered Yes and 24 percent No. As of last week, Yes had fallen to 50 and No had doubled to 48.

That a former community organizer and insurgent presidential candidate from a rocky middle-class background could be branded an out-of-touch elitist is not entirely the fault of his critics. Obama has perhaps never recovered from handing his administration’s plum economic jobs to Robert Rubin protégés with dirty hands from the bubble — Lawrence Summers, a deregulation advocate from the Clinton administration, and Timothy Geithner, an indulgent regulator at the New York Fed. Their presence has helped Obama’s more unscrupulous adversaries get away with the lie that his White House, not President Bush’s, created TARP. Indeed, such is the Obama administration’s identification with the tarnished Wall Street culture that even Michael Bloomberg mistakenly identified Geithner, a longtime public servant who never worked at an investment bank, as a Goldman Sachs alumnus at a public event in New York last month.

The White House’s not-on-C-Span deal-making with the health care industry behemoths only cemented the administration’s corporatist image, as did Obama’s meandering path to what still looks like a loophole-ridden compromise on financial regulatory reform. This is why even many Democrats have become lukewarm in their conviction that their president “understands the problems of people like you.”

For Obama to make Americans believe he does understand their problems and close the enthusiasm gap, he cannot merely make changes of campaign style. Sporadic photo ops in shirtsleeves or factory settings persuade no one; a few terrific speeches can’t always ride to the rescue. Nor would there be much point in firing Summers and Geithner — a political nonstarter anyway, now that it’s been opportunistically proposed by the G.O.P. leader John Boehner (his one good idea). Certainly Obama can add powerful new hands who might actually fight to protect ordinary Americans from the sharks; the star consumer advocate, Elizabeth Warren, should have been front and center, even in a Senate confirmation battle, long ago. But in the short term between now and Election Day, Obama may have the most to gain by sharpening his attack on those “powerful interests” who liken him to a dog. A top dog bites back (with a smile).

In a second forceful speech last week, delivered outside Cleveland, Obama titillated the political press by calling out Boehner by name eight times. But though Boehner is a nice soft target — he belittled the economic meltdown as an “ant” and has staked his political capital on extending tax cuts for America’s wealthiest 3 percent — he’s merely a front-man. Obama must also call out the powerful interests who are pulling the G.O.P.’s strings (and filling its coffers), whether on Wall Street or in Big Oil or any other sector where special interests are aligned against reform in the public interest.

If Obama can speak lucidly about a subject as thorny as race, he can surely do a far more specific job of telling the story of how we got to this economic impasse. He must join the many who are talking about why the top 1 percent of American earners now take home nearly a quarter of Americans’ total income — perhaps the single most revealing indicator of how three decades of greed and free-market absolutism have eviscerated America’s fundamental ideals of fairness. It can’t all be reduced to the shorthand of “George W. Bush.”

Obama might be so rude as to point out how these top earners are whining all the way to the bank even as the G.O.P. opposes extending more benefits to the unemployed and new tax cuts to small business. In June, the Business Roundtable chairman and Verizon chief executive Ivan Seidenberg gave a speech so rank with self-victimization — he claimed that government was “reaching into virtually every sector of economic life” — that the normally polite Washington Post business columnist Steven Pearlstein reviled him as “a corporate hack” peddling “much-discredited country-club nonsense.”

Seidenberg was soon topped by a multibillionaire Republican contributor, Stephen Schwarzman, who likened Obama’s modest financial regulatory package to “when Hitler invaded Poland in 1939.” Among the clients of Schwarzman’s private equity company, Blackstone, is Goodyear, which signed on in 2004 to get advice on “optimal business configuration” and announced it was shipping more jobs to Asia the following year. That narrative, one of countless like it, might have come in handy last week when Obama was speaking in Ohio, just 30 miles from Goodyear’s headquarters.

As many have noted, the obvious political model for Obama this year is Franklin Roosevelt, who at his legendary 1936 Madison Square Garden rally declared that he welcomed the “hatred” of his enemies in the realms of “business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.” As the historian David Kennedy writes in his definitive book on the period, “Freedom from Fear,” Roosevelt “had little to lose by alienating the right,” including those in the corporate elite, with such invective; they already detested him as vehemently as the Business Roundtable crowd does Obama.

Though F.D.R. was predictably accused of “class warfare,” his antibusiness “radicalism,” was, in Kennedy’s words, “a carefully staged political performance, an attack not on the capitalist system itself but on a few high-profile capitalists.” Roosevelt was trying to co-opt the populist rage of his economically despondent era, some of it uncannily Tea Party-esque in its hysteria, before it threatened that system, let alone his presidency. Only the crazy right confused F.D.R. with communists for taking on capitalism’s greediest players, and since our crazy right has portrayed Obama as a communist, socialist and Nazi for months, he’s already paid that political price without gaining any of the benefits of bringing on this fight in earnest.

F.D.R. presided over a landslide in 1936. The best the Democrats can hope for in 2010 is smaller-than-expected losses. To achieve even that, Obama will have to give an F.D.R.-size performance — which he can do credibly and forcibly only if he really means it. So far, his administration’s seeming coziness with some of the same powerful interests now vilifying him has left middle-class voters, including Democrats suffering that enthusiasm gap, confused as to which side he is on. If ever there was a time for him to clear up the ambiguity, this is it.



Friday, November 6, 2009

Genuine Economic and Political Democracy vs. A Market-Driven Society and Culture

http://www.truthout.org/1106095

All,

Another excellent essay by the outstanding educator, activist, cultural critic, and social theorist Henry A. Giroux...

Kofi


Market-Driven Hysteria and the Politics of Death
Friday 06 November 2009
by: Henry A. Giroux, t r u t h o u t | Feature


If we take seriously the ideology, arguments and values now emanating from the right-wing of the Republican Party, there is no room in the United States for a democracy in which the obligations of citizenship, compassion and collective security outweigh the demands of what might be called totalizing market-driven society; that is, a society that is utterly deregulated, privatized, commodified and largely controlled by the ultra-rich and a handful of mega corporations. In such a society, there is a shift in power from government to markets and the emergence of a more intensified political economy organized around three principal concerns: deregulated markets, commodification and disposability. In spite of the current failure of this system, right-wing Republicans and their allies are more than willing to embrace a system that erases all vestiges of the public good, turning citizens into consumers, while privatizing and commodifying every aspect of the social order - all the while threatening the lives, health, and livelihoods of millions of working class and middle class people.

If we listen to the likes of Rush Limbaugh and Glenn Beck and an increasing number of their ilk, free-market fundamentalism is not only sexy, it is an argument against the very notion of politics itself and the power of the government to intervene and protect its citizens from the ravages of nature, corrupt institutions and an unregulated market. In this discourse, largely buttressed through an appeal to fear and the use of outright lies, free-market capitalism assumes an almost biblical status as an argument against the power of government to protect its citizens from misfortune and the random blows of fate by providing the most basic rights and levels of collective security and protection. Before he died, President Franklin Delano Roosevelt advocated precisely for such rights, which he called a "second bill of rights," which included the right "of every family to a decent home. The right to adequate medical care and the opportunity to achieve and enjoy good health. The right to adequate protection form the economic fears of old age, sickness, accident and unemployment. The right to a good education."[1] That is, those social, economic and individual rights that provide a secure foundation for people to live with dignity and be free to become critical and engaged citizens, capable of both expanding their own sense of agency and freedom while being able to work with others to fulfill the demands of an aspiring democracy.

But in the truncated notion of freedom espoused by the right-wing extremists of a market-driven society, democracy is a deficit, if not pathology, and freedom is reduced to the narrow logic of an almost rabid focus on self-interest. This is a truncated version of freedom, defined largely as freedom from constraint - a freedom which, when not properly exercised or balanced, loses its connection to those obligations that tie people to values, issues and institutions that affirm "the existence of a common good or a public purpose."[2] This type of depoliticizing inward thinking with its disavowal of the obligations of social responsibility and its outright disdain for those who are disadvantaged by virtue of being poor, young or elderly does more than fuel the harsh, militarized and hyper-masculine logic of reality television and extreme sports; it also elevates death over life, selfishness over compassion and economics over politics. But more so, it produces a kind of dysfunctional silence in the culture in the face of massive hardship and suffering. There is more than moral indifference and political cynicism at work here; there is also a culture for which there is not much room for ideals, a culture that now considers public welfare a pathology, and responsibility solely a privatized and individual matter. This is a politics of disinvestment in public life, democracy and the common good. Hence, it is not surprising that we hear nothing from the faux populists Beck, Limbaugh, Hannity, and other cheerleaders for an unchecked capitalism about a market-driven landscape filled with desolate communities, gutted public services and weakened labor unions. Nor do they say anything about a free-market system that in its greed, cruelty, corruption and iniquitous power relations creates the conditions responsible for 40 million impoverished people (many living in their cars or the ever-growing tent cities), and 46 million Americans without health insurance - one result of which, according to a Harvard University study, is the needless deaths of 45,000 people every year.[3] Nor do they register any alarm over a system that, according to a recent study released by the Johns Hopkins Children's Center, claims that "lack of adequate health care may have contributed to the deaths of some 17,000 US children over the past two decades."[4] What do they have to say about a deregulated market system with its corrupt financial institutions shipping jobs abroad, swindling people out of their homes and gutting the manufacturing base of US industry? What do they have to say about a political system largely controlled by corporate lobbyists? Or insurance companies that pay employees bonuses when they maintain a high level of rejections for procedures that can save people's lives. Not much. All they see amid this growing landscape of human suffering and despair is the specter of socialism, which amounts to any government-sponsored program designed to offer collective insurance in the face of misfortune and promote the public good.

For right-wing extremists, a market-driven society represents more than a tirade against "big government"; it constitutes a new kind of politics that privileges exchange values and quick profits over all noncommodified values, resists all forms of government intervention (except when it benefits the rich and powerful or uses force to maintain social order), celebrates excessive individualism and consolidates the power of the rich along with powerful corporations - currently coded as mammoth financial institutions such as the insurance companies, pharmaceutical companies and big banks. Moreover, the ability of this previously devalued market-driven system to endlessly come back to life is truly astonishing. How can the Dick Armey's of the world be featured in The New York Times as if their ideology and ruthlessness is worthy of a major news story? How is it that an endless number of ex- and current politicians, who are wedded at the hip to corporate interests, can be taken seriously as spokespersons for the larger public? And as the fog of social and historical amnesia rolls over the media and the country in general, it does so in spite of the current financial crisis, the debacle following Hurricane Katrina and the in-your-face payout of big bonuses by institutions that were bailed out by the government. Clearly, market fundamentalism is alive and well in the United States, suggesting that it also works hard through the related modalities of education and seduction to induce the public to conform to the narrow dictates, values and dreams of totalizing market society, regardless of how disruptive it is of their lives. Shouting against the evils of big government does little to register or make visible the power of big corporations or a government that serves corporate rather than democratic needs.

What is unique and particularly disturbing about this hyper-market driven notion of economics is that it makes undemocratic modes of education central to its politics and employs a mode of pedagogy aimed at displacing and shutting down all vestiges of the public sphere that cannot be commodified, privatized and commercialized. Consumers are in and citizens are out. Fear and lying are the discourses of choice while dialogue and thoughtfulness are considered a weakness. To a greater extent than at any other point in liberal modernity, this regime of economic Darwinism now extends economic rationality "to formerly noneconomic domains [shaping] individual conduct, or more precisely, [prescribing] the citizen-subject of the neoliberal order."[5] Most crucially, this struggle over the construction of the market-driven consumer subject, especially as it applies to young people, is by and large waged outside of formal educational institutions, in pedagogical sites and spaces that are generally privatized and extend from the traditional and new media to conservative-funded think tanks and private schools.[6] As corporate-controlled spheres and commodity markets assume a commanding role educating young and old alike, pedagogy is redefined as a tool of commerce aggressively promoting the commodification of young people and the destruction of noncommodified public spaces and institutions. How else to explain that it is almost impossible to read about educational reform in the dominant media except as a tool to educate people for the workforce? In other words, education is a form of commerce and nothing more. Education for democracy today sounds a lot like the idea that health care for everyone is socialism. Clearly, what we are witnessing here is not just the rise political theater or media-driven spectacle in American society, but a populism that harbors a deep disdain for democracy and no longer understands how to define itself outside of the imperatives of capital accumulation, shopping and the willingness to view more and more individuals and groups as simply disposable waste products no longer worthy of the blessings of consumption.

As moral and ethical considerations are decoupled from the calculating logic and consequences of all economic activity, the horrendous human toll in suffering and hardship being visited upon all segments of the American population is lost in the endless outburst of anger, if not hysteria, promoted by right-wing extremists - shouting for a return to the good old days when financial institutions and money markets set policy, eventually ushering in one of the most serious economic crisis this country has ever faced. As the values of human togetherness, community, friendship and love are once again subordinated to the notion that only markets can give people what they want, the culture of fear and cruelty grows in proportion to the angry protests, the threat of violence and the unapologetic racism aimed at the Obama administration. In part, this is exemplified in not only the endless public pronouncements that make a market society and democracy synonymous, but also in the ongoing celebration, in spite of the near collapse of the mortgage sector, of the excesses of the new Gilded Age. Like those dead bodies that endlessly return in George Romero's film classic "Night of the Living Dead," right-wing Republicans and Democrats are back shouting from every conceivable platform to demolish any vestige of reform that relies on "big government." The right-wing infatuation with the word "death," as in the fictitious claim about Obama's death panels, is telling - more a projection of their own politics than a serious critique of health care reform. Despite a change in US political leadership, these forces - if left unchecked - will continue to promote and fight for a transformation of democratic governance and citizenship until they are both completely destroyed.

As democracy is increasingly reduced to an empty shell and the rise of a corporate and punishing state looms heavily on the 21st-century horizon, the market-driven principles of deregulation, radical individualism and privatization penetrate all aspects of daily life. Such market-driven values and their accompanying power-shaping institutions now profoundly influence the very nature of how the American public think, act and desire. All of which are increasingly wedded to the epicenter of a grotesque consumer culture, whose underside is a heartless indifference to the suffering and hardship of the millions of people without jobs, homes, health care and, increasingly, hope. The current fight against health care reform is not really just about fixing a terribly iniquitous and broken system; it is a struggle against the prospect of a better future for young people, the poor, the excluded and those struggling to stay alive in America. What are we to make of an ideology that moves from dismantling the welfare state to embracing the punishing state, an ideology that increasingly turns its back on those individuals for whom the prisons are now deputized as the only welfare institutions left in America, or, if they are lucky, find themselves in one of the emerging tent cities found under bridges and located in other invisible landscapes - used in the past to get rid of waste products, but now used to dump poor working class and middle class families?

Where is this hysteria going given that we now have in office an administration that refuses to fight for the ideals it campaigned on? We get a glimpse of where it is going in the tirades let loose recently by people like Sarah Palin, a dumber than dumb version of Ayn Rand, and Rep. Michele Bachmann (R-Minnesota), who, when she is not calling for members of Congress to be investigated for their communist sympathies, is railing against Obama's socialism. In leading crowds in Washington, DC, recently with the chant, "kill the bill," Bachmann displays not simply an angry protest against the reform of health care. On the contrary, there is a much broader notion of politics at stake here, one in which she and others are protesting for an utterly privatized and commodified society where corporations and markets define politics while matters of life and death are removed from ethical considerations, increasingly subject to cost-benefit analyses and the calculations of potential profit margins. In this scenario, each individual is on their own in confronting the many systemic problems facing American society, each of us responsible for our own fate, even when facing systemic problems that cannot be solved by isolated individuals. This politics of hysteria and ruthlessness that is now on full display in America is not just an attack on the social state, big government, the public sphere and the common good, but the very essence of politics and democracy. This is truly a politics that celebrates death over life.

--------

Notes:

[1]. For an excerpt of Roosevelt's call for a second bill of rights, see Bill Moyers, "Interview with James Galbraith," "Bill Moyers Journal," (October 30, 2009). Online at: http://www.pbs.org/moyers/journal/10302009/transcript4.html.

[2]. Bill Moyers, "Interview with James Galbraith," "Bill Moyers Journal," (October 30, 2009). Online at: http://www.pbs.org/moyers/journal/10302009/transcript4.html.

[3]. US Census Bureau Press Release, "Income, Poverty and Health Insurance Coverage in the United States: 2008," US Department of Commerce, Washington, DC. (September 10, 2009). Available online at: http://www.census.gov/Press-Release/www/releases/archives/income_wealth/014227.html.

Paul Klayman, "Harvard Study: 45,000 People Die Every Year," Institute for Southern Studies (September 18, 2009). Online at: http://www.southernstudies.org/2009/09/uninsured-die-every-year.html.

[4]. Editorial, "Lack of Health Care Led to 17,000 US Child Deaths," Agence France-Presse (October 29, 2009). Online at: www.truth.org/1030099?print ,

[5]. Wendy Brown, "Edgework: Critical Essays on Knowledge and Politics" (Princeton: Princeton University Press, 2005), p. 41.

[6]. For an excellent analysis of the control of corporate power on the media, see Robert W. McChesney, "The Political Economy of the Media," (New York: Monthly Review Press, 2008).



Henry A. Giroux holds the Global TV Network chair in the Department of English and Cultural Studies at McMaster University in Canada. Some of the ideas in this article draw from "Youth in a Suspect Society: Democracy or Disposability" (Palgrave/McMillan 2009). Henry A. Giroux's forthcoming books, "Hearts of Darkness: Torturing Children in the War on Terror" and "Politics After Hope: Barack Obama and the Crisis of Youth, Race, and Democracy," (Paradigm Publishers) will be released in January 2010. His homepage is www.henryagiroux.com.

Sunday, March 1, 2009

The Ideological Dimensions of Political Economy and the Present U.S. Crisis

http://www.nytimes.com/2009/02/28/business/economy/28recession.html?_r=1&th=&emc=th&pagewanted=print

All,

What this article and others like it predictably neglects to mention--and it is a very serious omission indeed--is that economics are NEVER separate from politics and ideology. In this specific context this means that the national budget that Obama is proposing (like that of any President) is fundamentally an ideological and practical statement about precisely what economic and social PRIORITIES are going to dictate the course of the national political economy--Depression or no Depression. In other words: This is a matter of what specific political forces prevail in the emerging ideological dogfight over whose economic and social interests are generally perceived as most important (i.e. protected and defended)--corporations or workers, Wall Street or consumers, citizens or economic and political elites. So just as Franklin Delano Roosevelt was compelled by objective circumstances in the U.S. to address the economic catastrophe of the Great Depression in 1932-33 with many of the most radically progressive and innovative political reforms in American governmental history, it is imperative to remember that, despite his own ruling class elite status, in terms of public policy with his 'New Deal' agenda HE CONSCIOUSLY CHOSE TO GO TO THE LEFT because the bottomline reality is that he could have far more easily chosen to go in the exact opposite political and economic direction towards the far right. The New Deal happened because millions of American citizens represented by hundreds of organizations actively demanded it. As just one example of citizens failing to adequately demand such an alternative the Weimar Republic in Germany (a society that had a much longer and far more intellectually sophisticated tradition of social democratic and radical leftist political activity than the United States) collapsed and in its place German society and its political and economic elites consciously chose the rightwing fascist alternative of Adolf Hitler and the Nazi Party. There were also similar responses throughout Europe and Asia which were determined by how the people in those societies were organized and mobilized and-- most importantly-- by whom...

All of which means that what Obama's administration is also being compelled to deal with in the present crisis is also the result of mass based political pressure (never forget that 68 million people voted for the President in November!). Needless to say we must all continue to demand LOUDLY that not only the progressive side of Obama's agenda prevails over all others--especially the Republican right--but that Obama go much further in the same eaxct direction with regard to every single aspect of that agenda---both foreign and domestic...

Kofi



February 28, 2009
Sharper Downturn Clouds Obama Spending Plans
By PETER S. GOODMAN
New York Times


The economy is spiraling down at an accelerating pace, threatening to undermine the Obama administration’s spending plans, which anticipate vigorous rates of growth in years to come.

A sense of disconnect between the projections by the White House and the grim realities of everyday American life was enhanced on Friday, as the Commerce Department gave a harsher assessment for the last three months of 2008. In place of an initial estimate that the economy contracted at an annualized rate of 3.8 percent — already abysmal — the government said that the pace of decline was actually 6.2 percent, making it the worst quarter since 1982.

The fortunes of the American economy have grown so alarming and the pace of the decline so swift that economists are now straining to describe where events are headed, dusting off a word that has not been invoked since the 1940s: depression.

Economists are not making comparisons with the Great Depression of the 1930s, when the unemployment rate reached 25 percent. Current conditions are not even as poor as during the twin recessions of the 1980s, when unemployment exceeded 10 percent, though many experts assert this downturn is on track to be significantly worse.

Rather, economists are using the word depression — a subjective term with no academic definition — to describe a condition of broad and extreme economic distress that remains stubbornly in place for much longer than a typical downturn.

This is more than a matter of semantics. As the government determines its spending plans, readying another infusion of cash for troubled banks while contemplating an additional bailout for the auto industry, the magnitude of those needs will hinge on the extent of the damage.

Mark Zandi, chief economist of Moody’s Economy.com, now places the odds of “a mild depression” at 25 percent, up from 15 percent three months ago. In that view, the unemployment rate would reach 10.5 percent by the end of 2011 — up from 7.6 percent at the end of January — average home prices would fall 20 percent on top of the 27 percent they have plunged already, and losses in the financial system would more than triple, to $3.7 trillion.

Allen Sinai, chief global economist at the research firm Decision Economics, sees a 20 percent chance of “a depressionlike possibility,” up from 15 percent a week ago.

“In the housing market, the financial system and the stock market, we’re already there,” Mr. Sinai said. “It is a depression.”

Yet, in drawing up the budget, the White House assumed the economy would expand by a robust 3.2 percent in 2010, with growth accelerating to 4 percent over the next three years.

“It’s a hope, a wing and a prayer,” Mr. Sinai said. “It’s a return to a sanguine view of the economy that is simply not justified.”

If, as is widely anticipated, the economy grows more slowly than the White House assumes, revenue will be lower, forcing the government to cut spending, raise taxes or run larger deficits.

Economists also criticized as unrealistically hopeful the assumptions by the Federal Reserve as it began so-called stress tests to gauge the health of the nation’s largest banks. In testimony, Ben S. Bernanke, the Fed chairman, said that the nation’s unemployment rate would most likely reach 8.8 percent next year.

“That forecast just doesn’t seem realistic,” said Dean Baker, co-director of the Center for Economic and Policy Research in Washington, “and I don’t think it helps the Fed’s credibility to make these sorts of forecasts right now.”

As federal regulators estimate potential losses at banks, the harshest assumptions they are testing entails the unemployment rate topping out at 10.3 percent — the highest level since 1983, but hardly the worst case.

By Mr. Baker’s reckoning, the unemployment rate may exceed 12 percent — the highest level since tracking began in 1948.

“We continue to see across-the-board numbers coming in worse than we expected,” Mr. Baker said.

By Mr. Zandi’s estimation, in the most likely case, the unemployment rate will reach 9.3 percent next year. The distress in the financial system, the job market and real estate have become inextricably intertwined.

As troubled banks remain hesitant to lend, even healthy companies are laying off workers. As more Americans lose jobs, they are cutting spending, depriving businesses of revenue, and falling behind on house, car and credit card payments, multiplying losses in the financial system. As more homes land in foreclosure and would-be buyers fail to secure mortgages, housing prices fall further, adding to the losses of the banks — a downward spiral.

Many economists expect that the labor data to be released next Friday will show that as many as 700,000 jobs disappeared in February, lifting the unemployment rate near 8 percent and pushing total job losses to more than four million since the recession began in December 2007.

Given the brutal forces at play, some experts question the administration’s decision to publicize the bank stress tests, as opposed to conducting them quietly.

“It invited the interpretation that this was the beginning of triage for the banks, that we were going to start lining them up and shooting them,” said Alan S. Blinder, a former vice chairman of the Federal Reserve and a professor at Princeton. “There are some things in the bank supervisor role that you just keep secret.”

Others argue that the tests could sow needed assurance. “The stress test could create transparency,” said Alan D. Levenson, chief economist at T. Rowe Price in Baltimore.

As the gruesome data accumulates, this much is already clear: Transparency is not for the squeamish.

Mr. Levenson noted that the weakening economy was destroying demand for goods and services even faster than the $787 billion stimulus program could replace it.


Copyright 2009 The New York Times Company


All,

Very Important information...Spread the word...

Kofi


Obama's Progressive New Budget
From: "Daniel Mintz, MoveOn.org Political Action" moveon-help@list.moveon.org


Want to see what change looks like? Real change?

Well, here it is. Last week, President Obama unveiled his budget—his blueprint for America—and it's ambitious, amazing, and unapologetically progressive. As Paul Krugman said, it will set America on a "fundamentally new course."1

President Obama called his budget "a threat to the status quo," and trust me, the status quo noticed. Oil companies, big banks and insurance companies are already mobilizing to stop it.2

Unfortunately, most folks don't realize how far-reaching and progressive the plan is—that's where we all come in.

Here are 10 really incredible things about Obama's plan. Check them out and then send them on to your friends and family so that millions of people will have the information they need to fight to make this vision a reality.

10 things you should know about Obama's plan (but probably don't)

The plan:

Makes a $634 billion down payment on fixing health care that will go a long way toward paying for a more efficient, more affordable health care system that covers every single American.3

Reduces taxes for 95% of working Americans. And if your family makes less than $250,000, your taxes won't go up one dime.4

Invests more than $100 billion in clean energy technology, creating millions of green jobs that can never be outsourced.5

Brings our troops home from Iraq on a firm timetable, finally bringing the war to a close—and freeing up almost ten billion dollars a month for domestic priorities.6

Reverses growing income inequality. The plan lets the Bush tax cuts for the wealthiest Americans expire and focuses on strengthening the middle class.7

Closes multi-billion-dollar tax loopholes for big oil companies. 8

Increases grants to help families pay for college—the largest increase ever.9

Halves the deficit by 2013. President Obama inherited a legacy of huge deficits and an economy in shambles, but his plan brings the deficit under control as soon as the economy begins to recover.10

Dramatically increases funding for the SEC and the CFTC—the agencies that police Wall Street.11

Tells it straight. For years, budgets have used accounting tricks to hide the real costs of the wars in Iraq and Afghanistan, the Bush tax cuts, and too many other programs. Obama's budget gets rid of the smokescreens and lays out what America's priorities are, what they cost, and how we're going to pay for them.12
This is the change we voted for. President Obama has done his part, now we need to do ours.
Can you pass this on to your personal network and then click here to let us know how many people you told, so we can track our impact together:

http://pol.moveon.org/budget10/?id=15687-9442574-gonrS3x&t=1

Thanks for all you do.

–Daniel, Tanya, Peter, Justin and the rest of the team

P.S. Turns out there are way more than 10 amazing things in Obama's budget and we couldn't resist sharing just a few more.

Stops unnecessary government subsidies to big banks, health insurance companies and big agribusinesses.13,14,15

Expands access to early childhood education and improves schools by investing in programs that make sure every child has a qualified, strong teacher.16

Negotiates for better prescription drug prices using Medicaid's tremendous bargaining power.17

Expands access to family planning for low-income women.18

Caps the pollution that causes global warming, and makes polluters pay to support clean energy innovation.19
Sources:
1. "Climate of Change," The New York Times, February 27, 2009
http://www.nytimes.com/2009/02/27/opinion/27krugman.html?em

2. "Obama Calls His Budget Sweeping, Needed Change," The New York Times, February 28, 2009
http://www.moveon.org/r?r=51201&id=15687-9442574-gonrS3x&t=2

3. "Obama Offers Broad Plan to Revamp Health Care," The New York Times, February 26, 2009
http://www.moveon.org/r?r=51202&id=15687-9442574-gonrS3x&t=3

4. "Obama Expects Fight Over $3.55 Trillion Budget Plan," Bloomberg News, February 28, 2009
http://www.moveon.org/r?r=51203&id=15687-9442574-gonrS3x&t=4

5. "Energy Budget Is Sunlight After Eight Years of Darkness," Center for American Progress, February 26, 2009
http://www.moveon.org/r?r=51204&id=15687-9442574-gonrS3x&t=5

6. "The Economic Cost of War in Iraq and Afghanistan," The New York Times, March 1, 2009
http://www.nytimes.com/2009/03/01/weekinreview/01glanz.html

7. "Tax Cuts," The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-tax.html

8. "Energy Budget Is Sunlight After Eight Years of Darkness," Center for American Progress, February 26, 2009
http://www.moveon.org/r?r=51204&id=15687-9442574-gonrS3x&t=6

9. "Student Loans," The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-edu.html

10. "Obama unveils budget blueprint," CNN, February 26, 2009
http://www.cnn.com/2009/POLITICS/02/26/budget/

11. "Obama budget would boost SEC, CFTC, FBI," Reuters, February 26, 2009
http://www.moveon.org/r?r=51205&id=15687-9442574-gonrS3x&t=7

12. "Obama's budget," Los Angeles Times, February 27, 2009
http://www.moveon.org/r?r=51206&id=15687-9442574-gonrS3x&t=8

13. "Student Loans," The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-edu.html

14. "Health Insurance Stocks Dive on Medicare Advantage Cuts," The Wall Street Journal, February 26, 2009
http://www.moveon.org/r?r=51207&id=15687-9442574-gonrS3x&t=9

15. "Agriculture," The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-agri.html

16. "Investing Wisely in Our Children," Center for American Progress, February 26, 2009
http://www.moveon.org/r?r=51208&id=15687-9442574-gonrS3x&t=10

17. "Obama Offers Broad Plan to Revamp Health Care," The New York Times, February 26, 2009
http://www.moveon.org/r?r=51202&id=15687-9442574-gonrS3x&t=11

18. "Obama Offers Broad Plan to Revamp Health Care," The New York Times, February 26, 2009
http://www.moveon.org/r?r=51202&id=15687-9442574-gonrS3x&t=12

19. "Setting 'Green' Goals," The New York Times, February 26, 2009
http://www.moveon.org/r?r=51209&id=15687-9442574-gonrS3x&t=13

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