Archive for the Economics Category

In a previous post, we questioned whether Obama would really make good on his promise of a middle-class tax cut. After all, during his campaign, Bill Clinton had promised the same thing but quickly reneged once he took office.

A few days ago, Rahm Emanuel, Obama’s first appointee for his new administration, stated that “at this juncture” the new administration planned “on giving 95 percent of working Americans a tax cut.”
[Read more]

It’s the day after Election Day. Barack Obama is now President-Elect. The Republicans are licking their wounds—and already beginning to think about their comeback.

What will that comeback strategy look like? And will Sarah Palin be an important part of it? Quite possibly. Here’s why
[Read more]

During the presidential debate last night, the term “entitlement reform” was repeatedly bandied about, but little was said in the way of concrete proposals.

To be sure, something must be done about Social Security and Medicare. Both programs are woefully underfunded in the long run. Either they, or the Federal government, or both, are facing disaster within a few decades if the gap between anticipated revenues and anticipated expenses is allowed to grow.

Both programs are also cornerstones of middle class prosperity. Without Social Security and Medicare, the majority of middle class households will face poverty in their old age. If anyone gets sick, that poverty will quickly turn to utter destitution. These programs must be saved.

The problem is referring to them as “entitlements.” American workers aren’t merely “entitled” to these things, they’ve earned, and paid for them. Check out this editorial about the so-called entitlement spending crisis.

The ongoing financial crisis in the U.S. has occasioned plenty of finger pointing. Some blame reckless mortgage brokers; others greedy financial institutions; and still others lax regulators.

Carl Feuer, a spokesman for UAW Local 2300, sees it slightly differently. According to him, the real cause of the crisis is the falling standard of living of the American worker.

As prices for food, gasoline, and health care rise even as wages stagnate or fall, many households have been unable to make their mortgage payments.
[Read more]

The recent failures of many big names on Wall Street have rattled investor confidence but have little direct effect on average Americans. The big money boys have been playing their games for years and almost always winning. Now they’re losing one. It goes with the territory.

But governmental bailing out of Wall Street firms may ultimately cost a lot of money that would be better spent helping Main Street homeowners and small businesses. It’s tantamount to welfare for the super rich. And according to a recent Dallas News article, even many Republicans are now questioning the wisdom of putting the government on the hook for private investors’ excesses.