"Obama should be using his clout to launch a bold 'Get America Back To Work' campaign"

[Better Believe It]

November 17, 2009

More Stimulus, More Government Jobs Programs, More Debt Relief
Let's Get Fiscal
By MIKE WHITNEY

"Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the use of our natural resources."

Franklin D. Roosevelt, Inaugural Address, March 4, 1933

-------------------------------------

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 (to) private profit-making. As a result, the economy continues to be whipsawed by rising joblessness, soaring defaults, and tighter credit.

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.

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.

Read the full article at:

http://www.counterpunch.org/whitney11172009.html

[joeybee12]

1. Reagan was dead wrong, the economy trickles UP, not down...

...when there is high unemployment, the overall health of the economy is bad and suffers...the foundation of the economy are the workers, and when people are working, the economy gets going.

[Better Believe It]

2. He trickled on us. Enough of that! I'm tired of being treated as a urinal!

[PBS Poll-435]

4. ...

:rofl::rofl::rofl:

[tblue]

3. Yes. Absolutely. And I think Obama will have to grow into this job.

He's gonna have to look the problem straight in the face and not be sidetracked or affronted by cries of "Socialism!!!!!" That's for the weak.

He could benefit greatly from having a Bernie Sanders in his cabinet. That's some cojones right there.

I think Obama is a good man and the times require him to grow into a great and fearless man. It's time.

[FiveGoodMen]

9. He'll have to do it at lightening motherfucking speed!

His actions will lose the House majority within a year.

[doc03]

5. Why all these the sky is falling posts on DU?

I can see Republicans harping on unemployment, but Democrats. The economy is picking up and there will be jobs, they are always a lagging indicator. Everyone in America expect instant results, it took many years to get in this mess it will take time to get out. The very last thing we need is more spending, that's one main thing that has a negative effect on the economy already. While you people are yelling the sky is falling I have nearly made up the losses in my retirement accounts.

[doc03]

7. Just what are these public works projects? To even build

any kind of road or railroad takes years of planning and studies. If you started a high speed rail project today for instance it would be probably 10 years before one shovel of dirt is turned. There was a company here that had plans to build 16 hydro plants on the Ohio river, it took them years to get all the permits and engineering studies then when they were finally ready to build AEP put up so many roadblocks they finally dropped the project. Back in the 30's they built the Hoover Dam, today it would be twenty years or maybe never to build it.

[Better Believe It]

11. Here's a list of over 18,000 useful projects for starters. Would you like to see more?

The following two recovery plans would do the job.

The first is: "America's Mayors Report to the Nation on Projects to Strengthen Metro Economies and Create Jobs Now".

This "Ready to Go" Public Works Plan Will Cost 149 Billion And Create 1.6 Million useful public works Jobs in 2 Years

The Republican and Democratic mayors released a report on January 17, 2009. It lists 18,750 local infrastructure projects in 779 cities costing 149 billion dollars that will create 1.6 million jobs. All of these projects can be quickly started and be completed by the end of 2010!

Find out exactly what "shovel ready" stimulus projects are ready to be built in your city, how many jobs would be created and how much they would cost under this plan.

It's in PDF format.

Go here and download the plan:

http://www.4shared.com/file/147551660/f03526b5/mser-report-200901.html

Press Release

AIA Develops Plan to Stimulate Economy and Create 1.6 Million Jobs In Building Sector
Recommendations Call for Funds for the Planning and Design of Energy Efficient Construction Projects


For immediate release:

Washington, D.C. – January 14, 2009 – The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast projects an 11 percent decline in design and construction activity in 2009. To revitalize the building sector, which accounts for about one in every ten dollars of the United States GDP, the AIA developed the Rebuild and Renew Plan, which details its recommendations for the allocation of funds in President-elect Obama’s economic recovery plan. The AIA is calling on the new administration and Congress to create policies that ensure these monies are spent on the planning, design and construction of energy efficient, sustainable buildings and healthy communities that are advantageous for both the environment and economy. If implemented correctly, the nearly $100 billion plan would create 1.6 million jobs throughout the design and construction industry.

Recent reports estimate that the economic recovery package may total as much as $800 billion, with at least $350 billion dedicated to infrastructure projects. However, the AIA’s recommendations call for longer planning and design periods for projects to help ensure that they are carried out in the most effective, cost-efficient manner and that funds are not poorly spent due to the projects being hastily planned and executed. Providing funding for projects across 24 months will ensure a steady stream of funds for job creation over the likely life of the recession.

“President-elect Obama’s economic recovery package provides us with the opportunity to leave a lasting imprint on our built environment with projects that improve the safety of the existing infrastructure and increase energy efficiency, so long as these projects are undertaken with the utmost attention to smart design and planning,” said Christine McEntee, Executive Vice President and CEO of the AIA. “The Rebuild and Renew plan has garnered significant interest from the transition team and key Congressional leaders, and outlines initiatives to build better, safer and healthier communities while creating jobs and stimulating economic growth nationwide that can lead to long-term economic vitality.”

The plan is comprised of five key policy areas for immediate attention: 21st century schools; green commercial, residential and institutional buildings; historic preservation projects; transit, mixed use development and complete streets projects; and tax relief for businesses. Highlights from the plan include:

21st Century Schools – As the costs of energy and construction materials continue to increase and budgets get tighter, education agencies are further delaying or canceling major projects to repair and modernize school buildings. The AIA is calling for the federal government to invest $25 billion in districts across the country to repair, modernize and green school buildings. Additionally, it is proposing $700 million for pilot programs that would provide grants for the development of model school campuses that support 21st century teaching and learning in the each region of the country. This proposal would create more than 445,000 jobs across the industry.

Green Buildings - The current economic crisis presents an opportunity to build better public, residential and commercial architectural designs. This requires investing in the types of full-scale retrofits that can significantly reduce a building’s carbon footprint. The AIA is calling for the federal government to provide $30 billion for energy efficiency upgrades and modernization for federal, state and local public buildings; residential, commercial, industrial and healthcare facilities; and green affordable housing. Appropriating these funds would result in the creation of 430,000 jobs. In addition, the AIA is calling for increasing the size of the energy efficient commercial buildings tax deduction from $1.80 per square foot to $3.00 per square foot and this recommendation was just endorsed by the Environment America Research & Policy Center.

Transit and Livable Communities - A lack of investment in our infrastructure system since the New Deal has limited economic growth and jeopardized the safety of American citizens. As Congress prepares to create legislation that stimulates the economy the AIA believes that it is important to invest at least $12 billion for transit facilities and operations, since they greatly enhance the economic development, sustainability, safety and livability of communities. Funding for transit-oriented projects will create compact, walkable communities that mix housing, retail, office space and other amenities around high quality train systems and create approximately 375,000 jobs for the building and construction industry.

Historic Preservation Projects – The preservation of historic buildings already in the development phase will create more work for the building industry and generate positive economic returns in the communities surrounding them. The plan calls for the appropriation of at least at least $30 million to the under-funded Save America’s Treasure program for bricks-and-mortar preservation projects. The plan also calls for another $100 million in grants to be provided through the State Historic Preservation Officers and Tribal Historic Preservation Officers for non-federal public and nonprofit historic sites.

Tax Relief for Businesses – By accelerating the depreciation of energy-efficient heating, ventilation, air conditioning, or commercial refrigeration property installed in nonresidential property or residential rental property, businesses of all sizes would be able to improve their operations, reduce costs and reduce energy consumption. The AIA is also calling for elimination of a requirement that businesses that perform government work have three percent of their payments withheld.

For more information on the AIA’s Rebuild and Renew plan, or to download the full report, please visit:

http://www.aia.org/advocacy/federal/AIAS078578

[doc03]

15. Wasn't that what the first Stimulus Plan was supposed to do?

By the time Congress was done with it little was left for any stimulus after they got all their pork included. We supposedly had all these shovel ready projects in the waiting the last time but it took the bureaucrats 6 months for any money to be appropriated to them. Look at cash for clunkers what did it end up costing? A few hundred thousand for each car sold. Then all it accomplished was robbing sales from future months.

[Better Believe It]

16. No. That's not what it did after three Senate Republicans got finished wrecking the bill.

The Mayor's proposals were not included in the legislation. Read the bill. The Republicans, with the exception of three Senators who rewrote it, opposed the bill that was passed because they thought it created too many jobs with federal funds and they didn't like the tax cuts for working people and unemployment benefits. That's "welfare".

That money could have gone to the Wall Street banksters! That's different, it's "welfare" for the rich!

:)

[valleywine]

17. plus plus...

[Bluenorthwest]

8. Good for you. Guess that means I can skip donating to the

Food Bank? My county has double digit unemployment. I got mine too, buddy, but my world does not end at the tip of my own ledger.

[doc03]

10. I got news for you, I have been laid off since April

it's not the first time. I have seen many of these economic cycles in my lifetime and they always work themselves out without the government. In my opinion the government has interfered too much and run up way too much debt already.

[Better Believe It]

13. You've never seen this "economic cycle" in your lifetime.

The Republican talking point on "too much government" and "too much debt" won't fly on Democratic Underground .... well, at least it won't fly among progressives and authentic liberals.

[doc03]

14. Why do want to talk down the economy? I could understand

a Republican. One of the main roadblocks to economic recovery is consumer confidence, why the gloom and doom. From my experience the early 80s were worst than today. I can't be a Democrat and be concerned about the debt. You aren't concerned about the debt? You have millions of us baby-boomers starting to retiree and trillions of dollars are going to be required to keep SS and Medicare solvent and no plan what so ever to fix the problem. We have had to bail out the financial system and the auto industry costing us trillions of dollars and you aren't concerned about the debt and spending. In my opinion the debt is the biggest threat America faces today by far. I don't understand how any public works project you come up with is going to help today. Like I said any project such as high speed rail would take 20 plus years before a shovel full of dirt is turned over. In my opinion all that money that was given to Wall Street would have been better spent if it was just divided up and given to each taxpayer.

[Bitwit1234]

6. The problem is.

the millions and millions of manufacturing and electronic jobs, along with customer service ones will never come back. Bush's administration gave all those tax breaks to make it easy for them to move overseas. And the American public still buys the stuff they send back to us.

These overseas companies, do not buy American goods, why in the hell do we buy theres. I for one, wish there was a tax put on each and every product that comes in from overseas from a company that moved there from this country, that would make that product cost higher than anything still manufactured in our country. They would still make money tho, only pay 1.25 in most cases an hour instead of what they had to pay here. I am sick of this crap.

[Garam_Masala]

12. +10