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Today's Stories November 17, 2009 Mike Whitney November 16, 2009 Alan Nasser Jonathan Cook Mark Weisbrot Carol Miller Gary Leupp Harry Clark Ray McGovern Norman Solomon Ron Ridenour Norm Kent Brenda Norrell November 13-15, 2009 Alexander Cockburn Patrick Cockburn Tariq Ali Douglas Lummis Vijay Prashad Carl Ginsburg Manuel García, Jr. Rannie Amiri Mary Lynn Cramer Fred Gardner Dave Lindorff Robert Jensen David Macaray Corporate Crime Reporter Ron Jacobs David Model John V. Walsh Jon Mitchell Stuart Easterling Dan Bacher Franklin Lamb Farzana Versey Charles R. Larson Saul Landau David Yearsley Lorenzo Wolff Poets' Basement
November 12, 2009 Robert Weissman Franklin Spinney Nadia Hijab Afshin Rattansi Paul Craig Roberts Ralph Nader Belén Fernández Allan J. Lichtman Dave Lindorff Jayne Lyn Stahl November 11, 2009 Andrew Cockburn Mike Whitney Rev. Jesse Jackson Jeff Nygaard Stewart J. Lawrence James Ridgeway Eamonn McCann Michael Ortiz Hill Shepherd Bliss Walter Brasch November 10, 2009 Ellen Cantarow Dean Baker Rose Ann DeMoro Ramzy Baroud Peter Lee Dave Lindorff Roberto Rodriguez Winslow T. Wheeler Alan Farago Joseph Grosso November 9, 2009 Patrick Cockburn Linn Washington Carl Ginsburg Jeff Leys John A. Murphy John Halle Bouthaina Shaaban James Ridgeway Dave Lindorff David Macaray Stephen Fleischman Website of the Day November 6-8, 2009 Alexander Cockburn Mark Grueter Paul Craig Roberts Patrick Cockburn Gareth Porter Mike Whitney James Bovard Dean Baker Robert Lawless Saul Landau Jayne Lyn Stahl Stephanie Westbrook M. Shahid Alam Marc Levy Franklin Lamb Ron Jacobs David Ker Thomson John V. Whitbeck Julien Mercille Rannie Amiri John Ross David Michael Green Carl Finamore Farzana Versey Missy Comley Beattie Charles R. Larson David Yearsley Kim Nicolini Poets' Basement November 5, 2009 Pam Martens Vijay Prashad Brian Gallagher Norman Solomon Nadia Hijab Joseph Shansky Andy Thayer Tracy Rosenberg Website of the Day November 4, 2009 Stan Cox Andy Worthington From Gitmo to Palau: Who are the Uighurs? Robert Weissman Susan Galleymore Ralph Nader Michael Leonardi Bitta Mistofi Robert Bryce Martha Rosenberg Dave Lindorff Website of the Day November 3, 2009 Patrick Cockburn Mike Whitney Franklin C. Spinney Laura Carlsen Serge Halimi John Stanton Sophia Weeks Dave Lindorff November 2, 2009 Steven Higgs Ishmael Reed David Macaray Bouthaina Shaaban David Michael Green David Swanson Ellen Brown Adam Federman James McEnteer Stephen Fleischman Website of the Day October 30 - Nov. 1, 2009 Alexander Cockburn Jeffrey St. Clair / Carl Ginsburg Mike Whitney Joe Bageant Gareth Porter Saul Landau Anthony DiMaggio Dave Lindorff Rannie Amiri Niranjan Ramakrishnan Jayne Lyn Stahl Rev. William E. Alberts Alvaro Huerta Martha Rosenberg Binoy Kampmark Norm Kent Charles R. Larson Roth's "The Humbling:" Nothing Like a Novel From an Old Pro Ron Jacobs David Yearsley Lorenzo Wolff Kim Nicolini Poets' Basement Website of the Weekend October 29, 2009 Michael Neumann Mike Whitney Gary Leupp Conn Hallinan Marshall Auerback Laura Flanders Eamonn McCann David Macaray Mark Weisbrot Stephen Soldz Christopher Brauchli Website of the Day October 28, 2009 Moshe Adler Dave Lindorff Frank Joseph Smecker Alexandra Early M. Shahid Alam Vijay Prashad John Ross Franklin Lamb Gregory Travis Susan Galleymore Website of the Day October 27, 2009 Mike Whitney Patrick Cockburn Stewart J. Lawrence Alan Farago Ralph Nader Dave Lindorff Bouthaina Shaaban Brian M. Downing Elections in Afghanistan, the Second Time Around Iain Boal Carl Finamore Jayne Lyn Stahl Website of the Day October 26, 2009 Bill Quigley / Paul Craig Roberts Uri Avnery Mike Whitney Michael Snedeker Shamus Cooke David Michael Green Martha Rosenberg Patrick Bond Binoy Kampmark Website of the Day
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More Stimulus, More Government Jobs Programs, More Debt ReliefLet's Get FiscalBy MIKE WHITNEY
There's no reason why a sharp-witted politico like Barack Obama can't survey the wreckage around him and draw the same conclusions as FDR. The unemployment crisis should be the president's first order of business; Job 1. Instead, Obama is paralyzed by indecision, unable to settle on a policy that he's willing to stick with through Hell-or-high-water. His lack of resolve shows that he's got his priorities mixed up and that he's getting bad advice from his lieutenants. The economy needs more jobs to get back on track and make up for flagging demand. Those jobs are not going to come from the private sector which is struggling just to stay afloat. They'll have to be created by the government; major public works programs expressly designed to put millions of people back to work. These are precisely the kind of programs that conservatives and Libertarians despise, which is important, since it lays the groundwork for a national debate on the role of government. This is a debate that Obama can win, provided he stops waffling and shows some moxie. Unemployment has reached a 26-year high of 10.2 percent, but the "real" rate of joblessness (underemployment) is now hovering at 17.5 percent. These are Depression-era numbers. The Fed's zero-rate policy and liquidity-injection programs have sparked a 62 percent rally in the stock market since early March, but had no material effect on unemployment which is headed higher. A growing number of economists, including Paul Krugman, Nouriel Roubini and Marshall Auerback, are calling for bold action to stop the bleeding and put the country back to work. But the poll-driven Obama administration is afraid to break with the "pro growth" small-government dogma which has guided state policy for the last 30 years. Obama knows the economy needs another round of stimulus, but he's afraid to move forward for fear of offending Wall Street and fatcat party donors who see any expansion of government as a threat private profit-making. As a result, the economy continues to be whipsawed by rising joblessness, soaring defaults, and tighter credit. Here's a quote by Obama's chief economic advisor, Lawrence Summers, which helps to clarify the point:
The article was written by Summers in September of 2008, which shows that he knew what needed to be done more than a year ago. That's impressive, but where are the infrastructure and green technology projects that were promised? Where are the new jobs? Originally, Obama assured the public that the $787 billion stimulus package (aka--The American Recovery and Reinvestment Act) would create 3.5 million new jobs. But--even by the administration's own calculations--less than 1 million jobs have been created so far. Too much of the ARRA money was devoted to tax cuts (to appease Republicans and Bluedogs) which diminished its overall effectiveness. Here's an excerpt from an article by Alec MacGillis in the Washington Post which gives a breakdown of the costs:
So, while $11.4 trillion has been used to prop up the financial system, a paltry $250 billion has gone to creating jobs. No wonder unemployment has zoomed to 17.5 percent. Here's Summers again:
Summers sounds more like Huey Long than Milton Friedman, spouting populist blather about the growing inequality and the "fair distribution of benefits". What rubbish. Nearly all of the emergency government funding has been pumped into financial markets where the investor class is raking in bigger profits than ever before. Even worse, according to an article released last week by Politico.com, Team Obama is about to lunge even farther to the right. Here's a quote from Politico:
Uh, now who exactly is telling Obama that trimming the deficits (which involves raising taxes or cutting spending) in the middle of a severe economic downturn is a good idea? Summers, perhaps? This excerpt from Politico just highlights the yawning chasm between blabber and policy. If Obama decides to cut the deficits and jettison the jobs programs, the economy will slide right back into recession. Is that what he wants, or is he just an unwitting victim of Summer's crummy advice? Summers knows that the 3.5 percent surge in GDP in the 3rd Quarter was entirely the result of Obama's fiscal stimulus. He also knows that government jobs programs will increase demand, boost consumer confidence, add to state revenues, and spur growth. So why is he caving in to the deficit hawks and the dollar demagogues instead pushing Obama to rally the country to use the nation's vast resources to put its people back to work? The Fed can't do it. In fact, the Fed already has its back against the wall. It's balance sheet has ballooned to more than $2 trillion in the last year alone. It's getting no traction from its zero percent interest rates, and its $1.75 trillion quantitative easing program is set to end by the end of the 1st Quarter 2010. Fed chair Ben Bernanke has stabilized the financial markets, but the liquidity is still not getting to the people who need it most because the credit system is still gunked up with toxic paper. That's taken the "trickle" out of trickle-down, which is why the economy needs a lift, a direct infusion of stimulus to the jugular; to patch household balance sheets and perk-up consumer spending. The stimulus should be part of an aggressive reform agenda aimed at job creation. Otherwise things will only get worse. How bad will it get? Here's a clip from Nouriel Roubini's RGE Monitor, "The Worst is yet to Come":
This isn't the time for hemming-and-hawing. Obama should be using his clout to launch a trillion dollar "Get America Back to Work" campaign with all the public relations rigmarole to go along with it. 17.5 percent "real" unemployment is only part of the story, too. There's also 300,000-plus foreclosures every month, record personal bankruptcies, plummeting state revenues, and countless maxed out homeless shelters and food banks. We're in the throes of a low-grade depression that requires emergency mobilization aimed at expanding the public workforce and increasing wage-and-benefits packages to spark greater demand. The states should be given open-ended funding to cover losses in annual tax revenue as long as they agree to an across-the-board firing freeze for all state and local employees. Government resources should be provided in block grants to states for green technology, infrastructure projects, foreclosure relief, low income housing, and public health care facilities. Whatever it takes to rev up the industrial flywheel that keeps the economy purring; Do it! The Fed's monetary remedies have flopped. It's onto Plan B, which means bold New Deal-type jobs programs; direct public-service employment which eliminates the waste of tax credits for private sector hiring and misdirected stimulus which disappears down a black hole. Put money back in the hands of the people who will spend it (workers) and build a stronger economy where everyone benefits. The system needs to be rejiggered; everyone knows it. The essential balance between supply and demand has been upset and can't be restored without a larger public workforce. Much larger. Larger public workforce. Larger bureaucracy. Big government. Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.net
Inside the New Print Edition of Our Subscriber-Only Newsletter! Obama and Black America Ten months into Obama-time, the plight of black Americans is terrible. Yet overwhelmingly they rally behind the president. In a powerful report from the Deep South Kevin Alexander Gray asks the question: what should the black political agenda be? Mark Rudd counterposes “organizing” with “activism” and describes what it will take to build a movement. H. Bruce Franklin gives a chronology of the march into Afghanistan. Get your new edition today by subscribing online or calling 1-800-840-3683 Contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now! CounterPunch books and t-shirts make great presents.Order CounterPunch By Email For Only $35 a Year !
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Now Available from CounterPunch Books! Yellowstone Drift:
"Powerful and shocking .. Waiting for
Lightning
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