I still think it’s a decent deal (obviously, there are some holes in the plan), and the fury directed against him seems to have more to do with the cumulative effects of his ongoing political strategy — or lack thereof. (Hey, don’t look at me, I voted for Clinton!)
Now that I know he was following Peter Orzag’s blueprint, I’m very wary of what he might do yet.
But we do have a lot fewer suicidal jobless people with this deal. That should be worth something.
“the fury directed against him seems to have more to do with the cumulative effects of his ongoing political strategy”
EXACTLY.
Think about just one aspect of the Obama Republican plan: the 2% Social Security tax one year holiday.
It may have a slight stimulus effect on the economy, as there may be 2% more dollars (well, from those earrning below $106.800) circulating in the economy. Some of those dollars will go into savings, but for those at the bottom of the economic ladder (most of us, btw), it will be needed for higher health insurance costs, higher gas costs, higher heating costs, etc. Will some go for new goods and services? That is the hope.
It won’t have that much effect on overall demand, which is what will cause employers to hire and rehire workers and even allow new businesses to be started to meet new demand for goods and services. That effect is not a sure thing or knowable, altho there are must be models of what it statistically may add to the economy.
One effect will be deleterious for workers for the rest of their working lives at the jobs they have or jobs they might get during this “holiday.”
Employers will very likely figure the 2% withholding “saving” into the initial wages and salary offered to the new employees. It will be figured into any raises offered to existing employees. After the “holiday” ends, the worker will have a lower base wage for any future wage increases. At least 2% less…for the rest of his or her working life.
Helping employers get workers for 2% less? It does fit the Republican corporate desire for Cheap Labor. Thanks a lot, DINO President Obama.
Now, what if monies had been put into jobs programs? There are so many needs for infrastructure improvement, green technology (even low tech such as painting roofs reflective white) improvements, which would have an immediate impact of providing jobs to the unemployed but would also help the economy and, if green, the climate.
FDR understood about the need for jobs, jobs, jobs and realized corporations and business would not provide new ones until there was an overall demand increase.
Obama does not seem to get that. Alas.
Oh, shit. I just the RortyBomb piece — and, oh SHIT, we are going to see some really detrimental actions from Obama and the Republicans.
Dead Dem Party in the middle of the road….
RortyBomb spells out a lot of my concerns a lot better than I have. Obama’s “deal” just isn’t good enough.
http://rortybomb.wordpress.com/
Hopefully Congress improves the deal before approving it. As much as I have been frustrated by President Obama’s incremental improvements and preemptive compromises, I am coming around to keeping him on for another term without a primary challenge. The tax issue clearly shows that we need better Democrats in Congress, regardless of who is in the White House. That is what we should be putting our efforts toward.
Susie, Did you see that Senator Grassley thought there were enough votes to get a jobless extension through even without the tax plan? He said it would be a short one, but still, that’s better than the deal they cut on the capital gains tax extensions and the estate tax cuts. Those were real deal breakers for me.
http://qctimes.com/news/national/article_0ba26c02-02f5-11e0-b751-001cc4c002e0.html
Honestly, I don’t see how anything trumps 13 months of unemployment checks. You just can’t push that many people off the cliff again.
And Chuck Grassley, as you may recall, is a liar. Right now the Republicans will say anything to make more trouble.
I remain convinced that if we spurn this deal, we will lose what’s left of the working class.