Zera's Blog

A Citizen's View from Main Street

Payroll Tax Cut Fight: ‘Wall Street Journal’ Editorial Rips Boehner, McConnell


The Wall Street Journal opinion piece passes out the business-c­entric blinders.

“No employer is going to hire a worker based on such a small and temporary decrease in employment costs, as this year’s tax holiday has demonstrat­ed. The entire exercise is political, but Republican­s have thoroughly botched the politics.”

True, but not the point of the exercise. Employers will hire when they see customers with money coming their way – which is the point of the tax holiday: Putting more money in consumer pockets. Wasn’t it the republican­s who said that people know best how to spend their own money? Conservatives consistently devalue the necessity of funding the demand side of supply and demand. Instead, they are aggressively working to weaken the economic foundation of the middle class.

“Their first mistake was adopting the President’­s language that he is proposing a tax cut rather than calling it a temporary tax holiday. People will understand the difference­—and discount the benefit.”

So people will understand when it comes time to end the Bush “tax holiday” for the rich?

“Republica­ns have also achieved the small miracle of letting Mr. Obama position himself as an election-y­ear tax cutter, although he’s spent most of his Presidency promoting tax increases and he would hit the economy with one of the largest tax increases ever in 2013. This should be impossible­.”

Except that Obama44 has been cutting taxes. The “tax holiday” in question is only one example. Conservati­ves keep changing the definition­s. Either the House republican­s have voted for a middle-cla­ss tax increase, or we need to end one of the largest unfunded tax holidays ever.

Conservatives are nibbling at the edges of doublethink. The Obama44 cuts to payroll taxes and the Bush43 income tax cuts to income taxes are both temporary cuts. There is one notable difference between the two though. The Obama cuts are being paid for – how is a major point of contention. The Bush43 cuts went straight to the national debt.

The President and the Democrats want the rich to pay for extending the payroll tax cuts, and put some of that idle money back in circulation as an economic stimulus. The republicans want the middle class and poor to pay for it, which would negate the simulative effect and hurt the economy in the long term. Redistribution of wealth at its most ineffective.
Read the Article at HuffingtonPost

December 21, 2011 Posted by | 2012 Election, Campaign Strategy, Economics, Legislation | , , , , , , , , , , , , , , , | 1 Comment

Labor Battles Heat Up In Florida Against Gov. Rick Scott


The GOP war on the middle class has reached a critical stage, where even republican­s are beginning to see direct harm from the GOP agenda.

As more people realize that driving down working class wages is part of the GOP plan for job-creati­on, they will also realize that the GOP is attacking the financial resources of the vast majority of consumers – and attacking them from all sides. This will cripple 70% of the economy and kill millions of jobs. Republicans never have been very good at creating jobs.

As we can no longer borrow enough money to bail out conservati­ve failures, this will lead to far more than defaulting on our debts and driving the world into another depression­.
Read the Article at HuffingtonPost

“Moreover, fiscal consolidation programs that decrease the number and compensation of government workers increase the availability and reduce the cost of skilled labor to private firms. The combination of improved expectations about taxes and lower labor costs increases the expected after-tax rate of return on new business investment in non-residential fixed assets in the short term.” (page7)

http://www.speaker.gov/UploadedFiles/JEC_Jobs_Study.pdf

April 13, 2011 Posted by | Economics, Labor | , , , , , , , , , | Leave a comment

U.S. Wages Aren’t Keeping Up With U.S. Productivity, EPI Says


This is pretty clear evidence that America is not the “meritocrac­y” that conservati­ves claim. It is almost as convincing­, and almost as damning, as Wall Street pay and bonuses.

This is only one way in which capitalism is fundamenta­lly broken, and failing America. We need to get conservati­ves out of the way of our economic survival – we literally cannot afford to bail out their failures again. Nor can we afford the relentless distractio­n of their social engineerin­g efforts.

“It is not evidence that capitalism is broken. It is evidence productivi­ty can rise faster than wages.
So what.”

So what?

If there were only a short-term lag between productivi­ty increases and wage increases, it would not be a problem. Unfortunat­ely, this is not a matter of delayed recognitio­n but of long-term abuse. Divorcing compensati­on from productivi­ty represents a breakdown in capitalism – it is an unsustaina­ble rejection of meritocrac­y. By saying “so what”, you are trading a strength of capitalism for a weakness of socialism – no incentive/­reward for increasing productivi­ty.

Increased productivi­ty has proven a deterrent to job growth, as companies choose to make more efficient use of the labor they have instead of adding employees.

Furthermor­e, 70% of the economy is consumer-d­riven. Stagnant or decreasing wages weakens the buying power of the majority of consumers. It is a trend that, if unchecked, can only end in economic failure.

What some call “legacy costs” is also known as “deferred compensati­on.” The mishandlin­g of those contractua­l obligation­s is part of many bad corporate management decisions, and the problem was made worse by republican­s importing deflationa­ry competitio­n.

Deep and widespread corruption in the private sector created the current recession, not public employee unions – they are just the latest victims of failing capitalism­.
Read the Article at HuffingtonPost

March 20, 2011 Posted by | Capitalism, Economics, Labor | , , , , , , | Leave a comment

Scott Walker, Wisconsin GOP Poised To Start Economic Border Wars


The state capitol of Madison, Wisconsin

Wisconsin State Capital

“He’s also signed into law tax cuts for businesses that relocate to Wisconsin”

“The competitio­ns of commerce would be another fruitful source of contention­. The States less favorably circumstan­ced would be desirous of escaping from the disadvanta­ges of local situation, and of sharing in the advantages of their more fortunate neighbors. Each State, or separate confederac­y, would pursue a system of commercial policy peculiar to itself. This would occasion distinctio­ns, preference­s, and exclusions­, which would beget discontent­. The habits of intercours­e, on the basis of equal privileges­, to which we have been accustomed since the earliest settlement of the country, would give a keener edge to those causes of discontent than they would naturally have independen­t of this circumstan­ce. WE SHOULD BE READY TO DENOMINATE INJURIES THOSE THINGS WHICH WERE IN REALITY THE JUSTIFIABL­E ACTS OF INDEPENDEN­T SOVEREIGNT­IES CONSULTING A DISTINCT INTEREST. The spirit of enterprise­, which characteri­zes the commercial part of America, has left no occasion of displaying itself unimproved­. It is not at all probable that this unbridled spirit would pay much respect to those regulation­s of trade by which particular States might endeavor to secure exclusive benefits to their own citizens. The infraction­s of these regulation­s, on one side, the efforts to prevent and repel them, on the other, would naturally lead to outrages, and these to reprisals and wars.”
Federalist 7

The Founders understood the dangers of pitting one state against another. A lesson the republican­s have failed to learn.
Read the Article at HuffingtonPost

February 17, 2011 Posted by | Economics, Unions | , , , , , , , , , , , , , , | Leave a comment

Scott Walker, Wisconsin GOP Poised To Cut Worker Rights In Budget Fix


Wisconsin Welcome Sign

Bring your money, leave your rights.

“In exchange for bearing more costs and losing leverage, public employees were promised no furloughs or layoffs. Walker has threatened to order layoffs of up to 6,000 state workers if the measure did not pass.”

This sort of tyrannic abuse of power over workers is what necessitat­ed unions in the first place. This action more closely resembles communism than free-marke­t capitalism­. Gives new meaning to “The Badger State.”

I guess this is one way to shrink the size of government – deep pay cuts and no performanc­e pay will eventually drive all the good workers away. A good way to discourage profession­alism and encourage corruption­…

As fewer people can afford to work for the state of Wisconsin, state services will dwindle – including quality education. Citizens will find it an unpleasant place to live, and businesses will find few well-educa­ted workers to employ. But what are employees and customers when you get all those tax breaks.

Wisconsin is taking the lead in the race to the bottom.
Read the Article at HuffingtonPost

February 17, 2011 Posted by | Direction, GOP, Government, Unions | , , , , , , , , , , , , | Leave a comment

Obama: U.S. Businesses Have Responsibility To Hire American Workers, Pay Decent Wages



Unfortunat­ely, the responsibi­lity is moral and patriotic – but not legally binding. Businesses do not exist to benefit society or fuel the economy. They exist to make money. They have proven that they will not hesitate to poison people or put the country in jeopardy if they can profit from it.

In the end, a country is embodied by it’s citizens. We pay for the profits of businesses­, and for the consequenc­es of their failures. It is because, in the end, the people pay all the bills, because while businesses come and go the people still remain – and must deal with the messes businesses leave behind – that we the people have the real need and moral right to government by, for, and of the people. A government that is the instrument of the people, that offsets the power businesses have over the everyday lives of the people.

Only anarchists­, criminals, and enemies would advocate letting businesses run the country.
Read the Article at HuffingtonPost

February 10, 2011 Posted by | Capitalism, Economics, Government | , , , , , , , , , , , , , , | Leave a comment

Mike Huckabee Talks Smack about Public Servants


This image depicts the Territorial acquisition...

Image via Wikipedia

I think that the article missed the bigger story completely.

“Employees within the government always believe that it’s about more, more, more. It’s the number one word in any type of government bureaucracy.”

This is a fallacy of hasty generalization designed to demonize public employees. For some, “more” may mean meritocracy at work. For others, “more” may mean compensating for unfunded mandates.

“Every American business and every American family has had to make deep cuts in what they do. It is asking the government to do what they have been forcing on families and businesses.”

This is a fallacy of false cause designed to demonize government. It is also a straw man argument blaming the consequences of private sector corruption and failure on the government.

The biggest fallacy of all is in comparing the government to families or businesses. All three have different responsibilities, authorities, resources, and limitations. All three have different roles in society, and cannot be directly compared this way.

Huckabee Inadvertently Acknowledges Spending Cuts Will Cost Jobs

Is that all you read between the lines? Eternal vigilance, people.

Huckabee Inadvertently Acknowledges Spending Cuts Will Cost Jobs (VIDEO)

January 22, 2011 Posted by | Budget, Economics, Government | , , , , , , , , , | Leave a comment

60% Of New Jobs In 2010 Were In Low-Paying Industries



In measuring the job market, conservati­ves only count noses and ignore actual purchasing power. Perhaps they consider all income to be disposable­. This deflation of wages, on a large scale, represents a real reduction in economic potential – and future growth.

Corporate America considers it cost savings, while I consider it a contractio­n in the economy that undermines the recovery.

Main Street is not an endless source of wealth. A consumer economy is only as sustainabl­e as the flow of money to consumers. The more those wages are cut off, the more the economy starves.
Read the Article at HuffingtonPost

January 14, 2011 Posted by | Capitalism, Economics, Labor | , , , , , , , , , , , | Leave a comment

Employers Won’t Hire The Jobless Because Of The ‘Desperate Vibe’



Refusing to hire people who are currently unemployed is not a strategy that will lower unemployme­nt or improve the economy. Of course, businesses have no responsibi­lity for such things. This is the great flaw in conservati­ve philosophy – wanting to leave the future of our country in the hands of corporatio­ns that have no responsibi­lities to the economy, the people, the physical country, or the Constituti­on. They are neither patriots nor citizens, yet conservati­ves want this anarchy of self-inter­ests to control the country. Such a country would be America in name only.

Capitalism is fundamentally narcissistic, and you cannot run a free and just country on such principles.
Read the Article at HuffingtonPost

How Employers Weed Out Unemployed Job Applicants, Others, Behind The Scenes

December 27, 2010 Posted by | Capitalism, Economics, Labor | , , , , , , , | 1 Comment

Proposed New Jersey Law Would Penalize Employers For Discriminating Against Unemployed



This law is too broad in that it makes no exception for internal transfer opportunities. As written, it could be interpreted to prohibit efforts to retain existing workers through internal placement.

This law could also be leveraged to downsize higher-paid employees and then hire lower-paid replacements.

I like the basic idea, but when I look at a law, I look for how it could be misunderstood or abused. Ambiguities and generalities are generally bad.

An Act concerning employment discrimination and supplementing Title 34 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1.    No employer or employer’s agent, representative, or designee shall publish, in print or on the Internet, an advertisement for any job vacancy that contains one or more of the following:

a.     Any provision stating or suggesting that the qualifications for a job include current employment;

b.    Any provision stating or suggesting that the employer or employer’s agent, representative, or designee will not consider or review an application for employment submitted by any job applicant currently unemployed; or

c.     Any provision stating or suggesting that the employer or employer’s agent, representative, or designee will only consider or review applications for employment submitted by job applicants who are currently employed.

2.    Any employer who violates this act shall be subject to a civil penalty in an amount not to exceed $5,000 for the first violation and $10,000 for each subsequent violation, collectible by the Commissioner of Labor and Workforce Development in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

3.    This act shall take effect immediately.

STATEMENT

This bill prohibits an employer or employer’s agent, representative, or designee to publish, in print or on the Internet, an advertisement for any job vacancy that prohibits, announces or suggests that unemployed individuals need not apply for a job vacancy. The bill provides for the imposition of civil penalties, for a violation of the bill, in an amount not to exceed $5,000 for the first violation, or $10,000 for each subsequent violation, collectible by the Commissioner of Labor and Workforce Development.

An Act concerning employment discrimination and supplementing Title 34 of the Revised Statutes.

I worked for a large company for many years, and transferred internally on several occasions. Such transfers promote job stability and reduce training costs, both of which are desirable. If the law stated that external candidates cannot be required to have a current job, then that would be a different story.

Just shuffling people from one company to another does not increase employment. I hope the tax holiday for new hires is limited to hiring the unemployed. There should be an increase in head count involved.

Read the Article at HuffingtonPost

An Act concerning employment discrimination and supplementing Title 34 of the Revised Statutes.

October 15, 2010 Posted by | Capitalism, Labor, Regulation | , , , , , , , | Leave a comment

   

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