• Daily Digest - May 24: The Real (Student) Debt Crisis

    May 23, 2013Rachel Goldfarb

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    Nobel winner: Cut student loan rates (USA Today)

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    Nobel winner: Cut student loan rates (USA Today)

    Roosevelt Institute Chief Economist Joseph Stiglitz says he backs Elizabeth Warren's plan to let students borrow at the same discount rate as banks because student debt is holding back our economy, especially compared to countries that are actually doing something about it.

    • Roosevelt Take: The Roosevelt Institute | Campus Network's policy report "A New Deal For Students" lays out concrete and innovative policy solutions from students to solve the student debt crisis.

    Donors Urge Cuomo to Press for Public Financing of State Campaigns (NYT)

    Thomas Kaplan talks to Roosevelt Institute Senior Fellow Ellen Chesler and others who feel public campaign financing is necessary to combat an unusual form of peer pressure -- the kind the wealthy exert on politicians. According to Chesler, it's a moral issue.

    In one chart: we have a demand problem, not a skills problem (Working Economics)

    Heidi Shierholz looks at the unemployment and underemployment rates of college graduates under 25, and concludes that when even the young and highly educated have trouble finding jobs, the problem is pretty simple: no one is hiring.

    America's Scandalous Underfunding of Community Colleges (Slate)

    Matt Yglesias uses data on school spending changes to illustrate just how bad things have gotten at community colleges. Even with tuition hikes, they haven't been able to increase spending, which means they're forced to reduce services to our neediest students.

    Black Unemployment Is Still Shamefully High (The Atlantic)

    Jordan Weissmann knows the jobs crisis isn't close to over in the black community, where unemployment is both high and long-term. But Congress sees a string of decent jobs reports and a booming stock market and convinces itself the recovery is color-blind.

    Food Stamp Cuts Backed By Farm Subsidy Beneficiaries (HuffPo)

    Arthur Delaney points out the hypocrisy of lawmakers who receive significant subsidies for their family farms but feel the government doesn't have an obligation to feed the poor through SNAP. Anti-poverty programs: too costly. Photo op on a tractor: priceless.

    Japan the Model (NYT)

    Paul Krugman makes the case for Japan's current intense political efforts to turn around its economy, noting that no one else in the developed world is attempting stimulus on this level, and while it's too early to be certain, the signs look good that it's working.

    New on Next New Deal

    Michael Kinsley Gets It Wrong On "Austerians"

    According to Mike Konzcal, austerians are setting eliminating the deficit as the only priority, while the rest of us see a bigger picture. Kinsley and other austerians are in a fantasy world where everyone saves, no one spends, and the economy improves without stimulus.

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  • Daily Digest - May 23: Fearing the Future

    May 23, 2013Rachel Goldfarb

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    What’s in millennials’ wallets? Fewer credit cards (LA Times)

    Emily Alpert talks to Pipeline Fellow Nona Willis Aronowitz about why young households are carrying less and less credit card debt. According to Aronowitz, it’s all about fear of an uncertain future.

    Click here to receive the Daily Digest via email.

    What’s in millennials’ wallets? Fewer credit cards (LA Times)

    Emily Alpert talks to Pipeline Fellow Nona Willis Aronowitz about why young households are carrying less and less credit card debt. According to Aronowitz, it’s all about fear of an uncertain future.

    Why Suburban Poverty Is Less Visible and More Insidious (The Atlantic)

    According to Emily Badger, suburban poverty is an incredibly isolating phenomenon. In areas where children play in back yards, not public playgrounds, and commuters drive instead of taking the subway, communal support for the poor all but disappears.

    Elizabeth Warren Grills Treasury Secretary on Too Big to Fail (MoJo)

    Erika Eichelberger characterizes Jack Lew’s response to Senator Warren’s questioning on breaking up the biggest banks as nothing but avoidance. In the linked video, Lew sticks to name, rank, and serial number while Warren pushes for a direct answer on capping bank size.

    How Budget Cuts Could Lead To Higher Costs From Tornadoes (Think Progress)

    Bryce Covert reminds us that sequestration is still happening and is causing furloughs at the National Weather Service. The NWS warned residents of Moore, OK about the tornado 16 minutes before it touched down, and we can’t afford to cut it much closer.

    Fed Endorses Stimulus, but the Message Is Garbled (NYT)

    Nelson D. Schwartz explains that it doesn’t look like the Fed will be cutting back its bond-buying program just yet. Bernanke’s testimony yesterday showed a sense of caution, despite the apparent signs of improvement in the job market.

    Robert Kaiser on Dodd-Frank: ‘This example of Congress working also illuminated why it works so rarely.’ (WaPo)

    Neil Irwin and Robert Kaiser discuss why no one would want to emulate the process required to pass Dodd-Frank, with months of negotiations for bipartisan support collapsing and the bill barely scraping by. Instead, we get no negotiation and no legislation, saving everyone time.

    Why Obama’s Scandals Won’t Lead to Reform (Bloomberg View)

    Ezra Klein points out the disconnect between who is upset about the policy problems raised by the IRS and AP scandals, and who wants to make a fuss about them. With those categories split, he doesn’t think we will see any changes in anonymous political spending through 501(c)(4)s or legislation to protect journalists and their sources.

    U.S. Retailers See Big Risk in Safety Plan for Factories in Bangladesh (NYT)

    Steven Greenhouse says major U.S. retailers are worried the accord that many European retailers have embraced will open them up to legal liability. Apparently the real risk isn’t sending workers into a death trap; it’s all the paperwork and billable hours that could result.

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  • Daily Digest - May 22: Where Have All the Good Jobs Gone?

    May 22, 2013Rachel Goldfarb

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    The Case for Raising the Minimum Wage (U.S. News and World Report)

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    The Case for Raising the Minimum Wage (U.S. News and World Report)

    David Cooper makes the case that raising the minimum wage is not only advisable but necessary: with full-time minimum wage workers living below the poverty line, every taxpayer is subsidizing low wage employers. Not the most uplifting way to see your tax dollars at work.

    Workers Strike Over Federal Contracts and Low Wage Jobs In D.C.(HuffPo)

    Arthur Delaney and Dave Jamieson spoke to workers striking yesterday to protest low wages at workplaces funded by federal contracts. If taxpayers subsidize low-wage workers, this piece of the puzzle is even more frustrating, because federal contracts could set a higher wage floor.

    SNAP Rolls: They’re Elevated for a Reason (On The Economy)

    Jared Bernstein explains why SNAP enrollment isn’t dropping right alongside unemployment, even though that’s a pretty logical idea. Unemployment may be down, he says, but that doesn’t mean people have actually gone back to work, and in the meantime, they still need to eat.

    Keynes Skeptics Find New Economic Poster Boy (NY Mag)

    Jonathan Chait has discovered the new face of austerity, following the collapse of Reinhart-Rogoff: James Buchanan (the economist, not the unloved U.S. president). Buchanan argued “temporary” stimulus would create permanent long-term deficits, but Chait isn’t buying it.

    Naming Names in the Dodd Frank Mess (TAP)

    David Dayen wants us to stop blaming generic “Wall Street lobbyists” for gutting Dodd-Frank when they have name-brand help. Regulators like Mark Wetjen, one of the Democratic commissioners on the Commodity Futures Trading Commission, are also responsible for weaker rules.

    The IRS controversy isn’t about taxes. It’s about disclosure. (WaPo)

    Dylan Matthews thinks that the IRS controversy is really about the distinction between 501(c)(4)s and 527s: the former can keep donors a secret, but 527s must disclose. Apparently Tea Party organizations are worried that no one would donate to them if they had to own up to it.

    A Keynesian Victory, but Austerity Stands Firm (NYT)

    Eduardo Porter examines why Keynesian economists are running victory laps around austerians, yet austerity politics are still reigning across the globe. The intellectual battle may be won, but politicians are resisting.

    New on Next New Deal

    Creating Good Jobs is the Defining Issue of Our Time (Next New Deal)

    Roosevelt Institute Senior Fellow Richard Kirsch knows that our biggest economic problem isn’t the deficit or national debt: it’s jobs. Good jobs, the ones that provide decent pay and benefits, are disappearing, and the economy can’t recover without them.

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  • Creating Good Jobs is the Defining Issue of Our Time

    May 21, 2013Richard Kirsch

    On June 4th, the Roosevelt Institute will bring together leading thinkers, activists, and policymakers for A Bold Approach to the Jobs Emergency: Setting the Political Agenda for 2014 and 2016, a daylong conference in Washington, D.C. that will focus on America's desperate need for more and better jobs. Today, Roosevelt Institute Senior Fellow Richard Kirsch, who will take part in a panel on "Creating Momentum for More Good Jobs," explains why job quality is as important as job quantity.

    On June 4th, the Roosevelt Institute will bring together leading thinkers, activists, and policymakers for A Bold Approach to the Jobs Emergency: Setting the Political Agenda for 2014 and 2016, a daylong conference in Washington, D.C. that will focus on America's desperate need for more and better jobs. Today, Roosevelt Institute Senior Fellow Richard Kirsch, who will take part in a panel on "Creating Momentum for More Good Jobs," explains why job quality is as important as job quantity.

    What is the single biggest economic problem facing people early in this century? It is not the budget deficit or national debt. It is the eroding and disappearing of good jobs. People with good jobs – jobs that provide decent pay and benefits and the flexibility to be able to take care of one’s family – are the fuel of the economy and the basis for broadly shared prosperity. Good jobs, and the things that go with them – a good education, affordable health care, and a secure retirement – are the very definition of a successful economy.

    The public gets it. When asked to identify “the single biggest problem facing this country today,” 40 percent answered “jobs and the economy.” Number two was “budget deficit/national debt,” at 6 percent.

    Four years after the official end of the Great Recession, the real economy – not corporate profits or the stock market – remains stalled. The proportion of Americans working is the lowest in 30 years, or basically since women started entering the work force in large numbers. Most of the jobs that have been created since the recession pay low wages. Long-term unemployment also is at levels well above anything since the Great Depression. And income for all but the richest has gone down.

    So why does Washington and elite discussion remain focused on the debt and deficit? And what will it take to move the politics of the nation to take on what the public correctly understands is the central economic issue?

    The fundamental reason that good jobs is not the defining issue is that an economy in which some people have a lot while more and more scrape buy is working just fine for the wealthy and huge corporations that control our politics and media. Personally, the rich are doing better than ever, as their inflated pay and corporate profits are supported by the financialization of the U.S. economy, low-wage service sector jobs here. and low-wage manufacturing and importable services abroad. The middle class in the U.S. may be getting squeezed and shrinking, but it’s still broad and big enough to fuel demand for U.S. goods and services. The disasters to come from the lack of retirement savings, high student loan debt, and long-term wage stagnation are not stopping the rich from getting richer today.

    The interest of the ruling elites has been powerfully popularized by the right’s highly disciplined, focused narrative on the national debt and budget deficits. While the motivation here is ideological – to shrink those government services and activities that improve social welfare or regulate the markets – the weapon has been convincing Americans that the national debt is an unconscionable burden on our children, that government deficits are as unsustainable as household deficits, and that taxes are paid to a wasteful, corrupt government. Instead, the right insists that businesses are the “job creators” and that any effort to interfere with what business thinks is best will put people out of work.

    As a result, the great public concern about the lack of good jobs doesn’t translate into support for government action – or any action, other than to do your personal best and pray that things get better. People don’t believe that there are solutions for good jobs in a global economy. They certainly don’t see that government has a role in creating jobs or that tax dollars could be spent on effective job creation. And while they support regulations to improve job quality, they are very susceptible to pro-business arguments.

    What do we do about it? Here’s an overview of a strategy. One, we need to make good jobs the central, driving focus of progressive discourse, just as the right has put deficits/debt/limited government at the center of their policy, politics, and communication. That requires clearly linking every issue to the need to create good jobs that will enable working- and middle-class families to have opportunity and security. In doing that, we need to be talking about good jobs in a multi-dimensional way. Good jobs are about having enough pay to support your family, flexibility to allow you to care for your family – from children to elders – and access to good, affordable education, affordable health care, and a secure retirement.

    Two, we need to center our discourse on good jobs in a powerful, values-based story about how we create an America that works for all of us. This story starts with a vision of an America that provides liberty, justice, and prosperity for all. It reinforces the notion that people believe but rarely hear: working families and the middle class are the real engines of the economy. It provides examples from American history of how decisions we have made together built the great American middle class. And it follows those with a vision and example of how we can make decisions together in the 21st century to create good jobs for everyone in America. It clearly identifies who is responsible for the mess we’re in – the super-rich and corporations who game the system at our expense and buy off our government. And finally, the story empowers people as the heroes who can take action for change.

    Third, we need to champion a program of policies that will work to create good jobs. We have policies and innovative ideas that will work today, many of which will be discussed on June 4th in Washington when the Roosevelt Institute holds a daylong conference on A Bold Approach to the Jobs Emergency. Certainly, we will need to continue to develop policy solutions that address major challenges like globalization and technology. But we should be clear that it is in our power now to redirect economic policy to dramatically improve the quality of the jobs Americans now hold and to create millions of new good jobs for people who are out of work.

    Fourth, we need to organize campaigns for good jobs, starting with a focus at the local and state level. Even though municipalities and states don’t have as many resources as the federal government, there are policies that can be taken locally to create a new economic paradigm. The success of those policies will be more immediately visible to people. The lessons learned in building popular support for these policies will be transferable to other places and to the federal level.

    Finally, we need to make good jobs a defining issue of the 2016 election. To reach that goal, we will need to do all of the above, with a strategy that brings the work together for the 2016 election. In 2014, we should focus on a few U.S. Senate and congressional elections to experiment with the best approaches. We can take a page from specific strategies used from 2007-2008, which made health care the central issue of the 2008 election.

    American’s historical optimism is being deeply challenged by the squeezing, and indeed crushing, of the middle class. Our job is to rekindle that optimism and make it a powerful force for change. We can build an America that works for all of us by building a movement to demand good jobs for everyone. 

    Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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