Home » Posts tagged 'economy'
Tag Archives: economy
Earlier today, I signed an Executive Order to raise the minimum wage to $10.10 for federal contract workers.
It’s the right thing to do. But what’s more, companies have found that when their employees earn more, they’re more motivated, they work harder, and they stick around longer. You should expect the same of your federal government.
The bottom line is this: We are a nation that believes in rewarding honest work with honest wages. And America deserves a raise.
The order I signed today will help folks across the country. But it’s not enough.
Right now, there’s a bill in Congress that would raise the federal minimum wage to $10.10 an hour for all Americans. It would lift wages for more than 28 million current workers, and would move millions of Americans out of poverty. That means businesses would have customers with more money to spend.
Raising the minimum wage would grow the economy for everyone.
You don’t need to believe me: Believe the 600 economists — including seven Nobel Prize winners — who wrote both houses of Congress last month to remind them that the bill before them will have little or no negative effect on jobs.
When I stood before both chambers of Congress and said that I intended for 2014 to be a year of action, that wasn’t just a nice line in a speech. It was an acknowledgment that we’ve got to restore opportunity for everyone in America — the idea that no matter who you are, or how you started out, you can get ahead here if you’re responsible and willing to work for it. That’s what this “year of action” is all about.
And since that speech, I have taken actions on my own to make it easier for folks to save for retirement, help working Americans get the skills that good jobs demand, and assist millions of Americans who have been looking for work for several months. I’ve announced a major new commitment toward connecting our schools to 21st-century technology.
That action continues today, and in the months to come.
President Barack Obama
— by Rich Dunn, NV Rural Democratic Caucus, 2nd Vice Chair
On Monday the treasury budget for December was released, and guess what. The federal government ran a surplus of $53.20 billion. Yes, I said surplus. It got little attention because budget surpluses have become relatively routine of late. Here are the treasury budgets for the previous seven months:
You’re seeing that right. The budget was in surplus in three of the last seven months of 2013.
The deficit for Fiscal Year 2013 totaled $680.3 billion, which was down from $1.09 trillion in 2012—the fourth consecutive year when deficits were over a trillion dollars. The Obama administration is now running annual deficits less than half the size of the one he inherited from Bush in 2009, and economists are already speculating that Obama’s budget for Fiscal Year 2016 could well be in surplus.
The government should not be running a fiscal surplus when aggregate demand is still lagging in the macro economy. The country’s infrastructure is falling apart and we should be fixing it right now because the money is there and isn’t being used to expand employment or investment in the private sector. Instead coporate balance sheets are hoarding cash and using it to pay special dividends and stock buybacks for the investor class. That money should be put to work investing in America!
— by Robert Reich, Chancellor’s Professor of Public Policy at the University of California at Berkeley; Secretary of Labor in the Clinton administration.
I keep on debating right-wingers who tell me the economy is working for everyone, that widening inequality isn’t really a problem, that the rich are using their wealth to generate growth and jobs — and that therefore supply-side “trickle-down” economics — starting with Reagan’s giant tax-cuts on the rich and continuing through George W. Bush’s tax cuts on the rich — has been a huge success. Baloney. Yesterday’s Census Bureau report reveals just the opposite.
MIDDLE-CLASS SHARE OF TOTAL INCOME DROPPING: The middle 60 percent of households took home only 45.7 percent of the nation’s income in 2012, the same percent it took home in 2011 and well below the 53.2 percent it used to take home in 1968.
TYPICAL HOUSEHOLDS ARE LOSING GROUND. The average under-65 household in the United States has lost $7,490 in annual income since the year 2000. In 1989, the median American household made $51,681 in current dollars; In 2012, $51,017. That means that 24 years ago, a middle class American family was making more than the a middle class family was making one year ago.
ALMOST ALL THE GAINS HAVE GONE TO THE TOP. Between 1967 and 2012, the average income of the top 5 percent grew by 88.2 percent in real terms, or three times the 26.6 percent growth experienced by the middle 60 percent.
Get it? Supply-side economics has been one of the biggest failures in American history. It’s a cruel hoax – a hoax because nothing has trickled down, cruel because it has imposed extraordinary hardship on millions of Americans.
Time Magazine named Robert Reich one of the ten most effective cabinet secretaries of the twentieth century. He has written thirteen books, including the best sellers “Aftershock” and “The Work of Nations.” His latest, “Beyond Outrage,” is now out in paperback. He is also a founding editor of the American Prospect magazine and chairman of Common Cause. His new film, “Inequality for All,” will be out September 27. Here’s the trailer for that film:
By the incomparable John Green, who says the following about his sources: “For a much more thorough examination of health care expenses in America, I recommend this series at The Incidental Economist and The Commonwealth Fund’s Study of Health Care Prices in the U.S. Some of the stats in this video also come from this New York Times story.”
— by Megan Slack, August 01, 2013
America has always been a nation of immigrants, and throughout the nation’s history, immigrants from around the globe have kept our workforce vibrant, our businesses on the cutting edge, and helped to build the greatest economic engine in the world. But our nation’s immigration system is broken and has not kept pace with changing times. Today, too many employers game the system by hiring undocumented workers and there are 11 million people living and working in the shadow economy. Neither is good for the U.S. economy or American families.
Commonsense immigration reform will strengthen the U.S. economy and create jobs. Independent studies affirm that commonsense immigration reform will increase economic growth by adding more high-demand workers to the labor force, increasing capital investment and overall productivity, and leading to greater numbers of entrepreneurs starting companies in the U.S.
Economists, business leaders, and American workers agree – and it’s why a bipartisan, diverse coalition of stakeholders have come together to urge Congress to act now to fix the broken immigration system in a way that requires responsibility from everyone —both from unauthorized workers and from those who hire them—and guarantees that everyone is playing by the same rules. The Senate recently passed a bipartisan, commonsense immigration reform bill would do just that – and it’s time for the House of Representations to join them in taking action to make sure that commonsense immigration reform becomes a reality as soon as possible.
In addition to giving a significant boost to our national economy, commonsense immigration reform will also generate important economic benefits in each state, from increasing workers’ wages and generating new tax revenue to strengthening the local industries that are the backbone of states’ economies. The new state by state reports below detail how just how immigration reform would strengthen the economy and create jobs all regions of our country.
We must take advantage of this historic opportunity to fix our broken immigration system in a comprehensive way. At stake is a stronger, more dynamic, and faster growing economy that will foster job creation, higher productivity and wages, and entrepreneurship.
Reprinted from The White House Blog. For more information:
— by Rebecca Leber
A conservative mogul worth $43 billion says he knows the secret to helping poor people. According to Charles Koch, the U.S. needs to get rid of the minimum wage, which he counts as a major obstacle to economic growth.
On Wednesday, the Charles Koch Foundation launched a $200,000 media campaign in Wichita, Kansas, with a hint of expanding it elsewhere. It is the Kochs’ biggest media buy since they promised to do more to “persuade politicians” after suffering losses in the 2012 election.
In an interview with the Wichita Eagle published Tuesday, Koch said that the minimum wage is one policy he is working against:
We want to do a better job of raising up the disadvantaged and the poorest in this country, rather than saying ‘Oh, we’re just fine now.’ We’re not saying that at all. What we’re saying is, we need to analyze all these additional policies, these subsidies, this cronyism, this avalanche of regulations, all these things that are creating a culture of dependency. And like permitting, to start a business, in many cities, to drive a taxicab, to become a hairdresser. Anything that people with limited capital can do to raise themselves up, they keep throwing obstacles in their way. And so we’ve got to clear those out. Or the minimum wage. Or anything that reduces the mobility of labor.
The Kansas ad does not specifically mention the minimum wage, but it does claim that Americans earning $34,000 a year should count themselves as lucky, because that puts them in the top 1 percent of the world. “That is the power of economic freedom,” the ad concluded. Meanwhile, Charles and David Koch are the ones comfortably in the 1 percent, with a net worth of about 1 million times that figure. Watch the ad:
The ad cites a report from the Koch-funded Fraser Institute showing that “The United States used to be a world leader in economic freedom but our ranking fell. And it’s projected to decline even further.” (That same Fraser report interestingly ranks Hong Kong, Singapore, New Zealand, Switzerland, and Chile ahead of the U.S. Those places all have government-run health care, which the Kochs adamantly oppose.)
In the U.S., economic inequality has grown rapidly, and the lagging minimum wage is in large part to blame. Some states have moved to address the growing gap between what people earn and the rising cost of living, but nationally the minimum wage has barely moved in decades. Little to no evidence exists to support Koch’s claim that the minimum wage impedes companies or causes them to fire employees. In fact, raising the minimum wage to $9 would pump up to $48 billion into the economy by the next year and ease the income gap for 15 million low-wage workers.
Koch maintained his and his brother’s political efforts are not for their own benefit, but for the country’s greater good. “All the other large companies, or the great majority of them, are promoting some kind of special cronyism where they’re undermining economic freedom.” Although he deems low-wage workers part of a “culture of dependency” on the government, Koch Industries is on the receiving end of oil subsidies, government contracts, and bailouts.
This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe.
On July 1st, student loan rates are set to double, which spells dire consequences for our nation’s future. But it’s not just students, or even young adults who suffer from this debt crisis, but the economy as a whole! Find out how this impacts everyone and what you can do: