November 17, 2010
IT'S AS IF THEY WANT TO MAKE UNEMPLOYMENT WORSE.... In times of economic distress and high unemployment, policymakers in Washington have a few options. Congress, for example, can make investments that spur growth and create jobs. Ideally, that's what we'd be seeing more of right now, but Republicans staunchly oppose any such efforts.
With stimulus off the table, we tend to look to the Federal Reserve, which is tasked not only with combating inflation, but also with a mandate to keep unemployment low.
Republicans have apparently decided this week that they disapprove of this, too.
Criticism of the Federal Reserve intensified on Tuesday as conservative Republican lawmakers called for limiting the central bank's mandate to keeping inflation low. They said that the Fed should stop trying to pursue the twin goals of balancing inflation and unemployment, as it has been required to do since 1977.
The Republican proposal was the latest example of the increasingly partisan antipathy toward the Fed's decision on Nov. 3 to inject $600 billion into the economy in an effort to lower long-term interest rates.
The legislation would be anathema to most Democrats, who say they believe that low inflation and low unemployment should be given equal weight. The latest proposal appears to be gathering support among Republicans, who will control the House starting in January, but is all but certain to be blocked by Democrats if it reaches the Senate.
It's tough to fully grasp exactly why the GOP would want this, but the rationale appears to go something like this: the Fed has intervened in the economy to help prevent massive unemployment, joblessness is still high, so the Fed should no longer try to prevent massive unemployment.
The perpetually confused Rep. Mike Pence (R-Ind.) said "the onus for growing jobs in this country should not fall on the Fed, it should fall on policy makers in this administration and in this, and the coming, Congress."
First of all, that's a nice idea, but as a practical matter, that's impossible. Second of all, with unemployment as high as it is, there's plenty of room for all kinds of institutions to try to improve conditions.
Steven Pearlstein noted today, "It's not exactly clear how unemployed workers would benefit from the Fed's benign neglect."
The answer, of course, is that unemployed workers wouldn't benefit at all, but that's irrelevant to Republican goals. Theirs is an ideological crusade; what works and who benefits makes no difference whatsoever.
—Steve Benen 10:30 AM
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Why do Republicans hate everyone except the rich?
Posted by: john R on November 17, 2010 at 10:34 AM | PERMALINK
Again, Steve is being disingenuous, probably for the sake of skirting a libel lawsuit. It's quite easy to grasp "why the GOP would want this." Everything the GOP has done has been to de-legitimize the Obama Administration, and they've done it at the expense of the country's economy, its national health and the goodwill we rely on throughout the world. Everything the Obama Administration does must be wrong, because if at any point, America starts to think we're on the right track, we'd never vote republican again. So they cause a tremendous amount of hardship, use the "liberal media" to blame Obama and Democrats in Congress, beat that drum until it becomes common "knowledge"and then use it to their political advantage, consequences to the country be damned.
The Republicans in Congress are terrorists, and it's time they be labeled as such.
Posted by: slappy magoo on November 17, 2010 at 10:36 AM | PERMALINK
"In times of economic distress and high unemployment, policymakers in Washington have a few options. Congress, for example, can make investments that spur growth and create jobs. Ideally, that's what we'd be seeing more of right now, but Republicans staunchly oppose any such efforts."
I assume the primary goal of Republicans is to keep the economy in bad shape and unemployment high going into 2012. This strategy worked very well for them in 2010 given the number of Americans who both vote and can be duped by pretty faces and simple slogans.
Then, once they regain the Senate and WH in 2012, they can declare war on Iran, and the Americans who voted for them won't dare say boo while the Republicans administer the coup de grâce to our formerly great nation. Ta-da! Grover Norquist's dream will be realized. Government will no longer be the problem.
Posted by: PTate in MN on November 17, 2010 at 10:40 AM | PERMALINK
Relax: criticizing the Fed is the last gasp of a loser.
Posted by: Bob M on November 17, 2010 at 10:50 AM | PERMALINK
Now You Get Mad!
You didn't get mad when the Supreme Court stopped a legal recount and appointed a President.
You didn't get mad when Cheney allowed Energy company officials to dictate Energy policy and push us to invade Iraq.
You didn't get mad when a covert CIA operative got outed.
You didn't get mad when the Patriot Act got passed.
You didn't get mad when we illegally invaded a country that posed no threat to us.
You didn't get mad when we spent over 800 billion (and counting) on said illegal war.
You didn't get mad when Bush borrowed more money from foreign sources than the previous 42 Presidents combined.
You didn't get mad when over 10 billion dollars in cash just disappeared in Iraq.
You didn't get mad when you found out we were torturing people.
You didn't get mad when Bush embraced trade and outsourcing policies that shipped 6 million American jobs out of the country.
You didn't get mad when the government was illegally wiretapping Americans.
You didn't get mad when we didn't catch Bin Laden.
You didn't get mad when Bush rang up 10 trillion dollars in combined budget and current account deficits.
You didn't get mad when you saw the horrible conditions at Walter Reed.
You didn't get mad when we let a major US city, New Orleans, drown.
You didn't get mad when we gave people who had more money than they could spend, the filthy rich, over a trillion dollars in tax breaks.
You didn't get mad with the worst 8 years of job creations in several decades.
You didn't get mad when over 200,000 US Citizens lost their lives because they had no health insurance.
You didn't get mad when lack of oversight and regulations from the Bush Administration caused US Citizens to lose 12 trillion dollars in investments, retirement, and home values.
You finally got mad when a black man was elected President and decided that people in America deserved the right to see a doctor if they are sick and the massive numbers of jobless people deserve short-term help to avoid complete financial ruin during a horrendous economic downturn. Yes, illegal wars, lies, corruption, torture, job losses by the millions, stealing your tax dollars to make the rich richer (WHO authorized the Bank bailout again?), and the worst economic disaster since 1929 are all okay with you (too big to fail banks, deregulation, etc)...but helping fellow Americans who are sick, poor, unemployed, suffering?... HELL NO YOU CAN'T!!
Posted by: In what respect, Charlie? on November 17, 2010 at 10:53 AM | PERMALINK
Thanks so much, "liberal" media.
Posted by: charlie nails it on November 17, 2010 at 10:56 AM | PERMALINK
This is a distraction. When The State of Arizona CUTS already approved organ transplants to save $4 million, NPR story this morning, what remains is only one equitable way to fix the unemployment situation. JUST SAY YES to tax increases for the über rich. Take that money and put it into public works projects. It is a secular sin to own a Armani suit worth a thousand meals when almost 1/3 of Arizona kids live in poverty.
Tax the excess wealth of the über rich now spend that on public works projects.
Republicans destroyed the economy by lax financial regulation Now they want to give that 5% of the populations which owns 85% of the country's wealth even more money and have had a free ride since Reagan when the highest tax rates were cut from 70% to 35%. Now the country and the economy are in trouble.
Tax cuts give people like Paris Hilton more $10,000 Hermes handbags, oil industry execs a second $200,000 Ferrari, and Real Estate Barons like Donald Trump more $30,000 Rolex watches. This is an obscene use of wealth when people are unemployed, losing their houses, and cannot afford college or health insurance.
Please, tell your elected officials you not only oppose the extension of the Bush tax cuts for the rich, but would like to see the top rate restored to the pre-Reagan level and used to build more roads, hospitals, green energy farms, museums, schools, theaters, and national parks.
I would be mortified to wear a $1000 pair of shoes when The State of Arizona CUTS already approved organ transplants to save $4 million in its version of Medicaid. I would be ashamed to show my face if I cut meager unemployment benefits to give people like Meg Whitman another few million to blow on political consultants.
Tax the excess wealth of the über rich now.
Posted by: KurtRex1453 on November 17, 2010 at 11:04 AM | PERMALINK
Yes let's take 'power' away from the Fed. Because CONGRESS can do it sooooo much better. Honestly???
Posted by: SYSPROG on November 17, 2010 at 11:05 AM | PERMALINK
Thanks to: In what respect, Charlie? and KurtRex1453 Well said
Posted by: john R on November 17, 2010 at 11:10 AM | PERMALINK
"The onus for growing jobs in this country should not fall on the Fed, it should fall on policy makers in this administration and in this, and the coming, Congress."
I thought being a Republican meant believing the government had no role in helping the economy and job creation should be left to the private sector. yet another example of their shamelessness.
Posted by: Jeremy Holland on November 17, 2010 at 11:22 AM | PERMALINK
Steve, it is wrong to say "what works and who benefits makes no difference whatsoever." The GOP is deeply concerned with what works for the wealthiest 2%, and they are, of course focused like a laser beam on retaining maximum benefits for the wealthy.
Posted by: Michael Carpet on November 17, 2010 at 11:23 AM | PERMALINK
I really think the Republicans want to take us back to the 1830s. Except without the protectionism. Not being hyperbolic. The views they've been espousing are damn near indistinguishable from those that drove the New Poor Act of 1834 that formed the backdrop for "Oliver Twist."
http://www.associatedcontent.com/article/833627/the_new_poor_law_and_oliver_twist.html
Posted by: Another Steve on November 17, 2010 at 11:25 AM | PERMALINK
It's really quite simple. As Rush Limpdick is quoted in the post below, Republicans do not want to see the President's (read Democrats') policies to succeed.
Today's GOP is following the same strategy as their ideological soul mates did in Germany between 1930 and 1933: be "the party of no" and insure that things do not work and a crisis is created, and then through propaganda convince the voters that only they could solve the problems. So far, since January 20, 2009, this policy has worked. Will it continue to work until they achieve their "January 30, 1933" on January 20, 2013?
All it takes for this policy to succeed is for the opposition to be spineless and disorganized, as the German Social Democrats were then and as their ideological soul mates are here today.
Posted by: TCinLA on November 17, 2010 at 11:31 AM | PERMALINK
Of course, they want to make it worse. That's been the political strategy all along. Make everything as bad as possible on the pretty sure bet that people will blame Obama in two years. We're really going to find out what he's made of now. If he thought it was rough the past two years, the next two are going to make the previous look like a holiday in paradise.
Posted by: digitusmedius on November 17, 2010 at 11:38 AM | PERMALINK
Theirs is an ideological crusade; what works and who benefits makes no difference whatsoever.
Steve: your naivety has reached new heights. Of course it makes a difference what works and who benefits. It's very important indeed that GOP proposals work splendidly in keeping unemployment high and economic growth low if they are to defeat Obama in 2012.
Sheesh!
Posted by: These days excessive cynicism is by definition impossible on November 17, 2010 at 11:52 AM | PERMALINK
"It's tough to fully grasp exactly why the GOP would want this..."
Not at all. Keeping inflation low almost guarantees that wages will remain low. Current unhappiness with the Fed is just an opportunity for the GOP to transform it permanently into a corporate servant.
It's not such a stretch, actually. We've been hearing forever from the Fed about policies designed to keep inflation near zero. When was the last time anybody of influence in DC talked about full employment - something that used to be a commonplace of American political discourse?
Posted by: smintheus on November 17, 2010 at 11:57 AM | PERMALINK
Pence probably thinks "onus" is a synonym for shit.
Posted by: hells littlest angel on November 17, 2010 at 12:02 PM | PERMALINK
Why do people keep forgetting that the Republicans' main and all consuming goal is to win the Presidential election in 2012. That, and that alone dictates their policy decisions and actions. Too bad for America !
Posted by: Judith Martinez on November 17, 2010 at 12:31 PM | PERMALINK
It's almost as if those evil Republicans want people to get a job and become productive members of society, gaining self-worth and a good income and contributing tax money back to the nation. How wrong of them! They are so awful! We should be working harder to make welfare more comfortable, more welcoming, so that more people lose their sense of self-worth and become dependent wards of the state.
Posted by: A Conservative Teacher on November 17, 2010 at 12:59 PM | PERMALINK
Republicans are HAPPY about high unemployment because high unemployment drives down wages and other forms of compensation. These fuckers are sociopaths.
Posted by: Chris on November 17, 2010 at 1:17 PM | PERMALINK
Thank you "In what respect, Charlie?" -- I'm clipping, saving and sharing at every opportunity. You nailed it.
Posted by: RR on November 17, 2010 at 1:33 PM | PERMALINK
As if?
Seriously if you haven't figured out what they're doing yet...
take a look at Latin America circa 1970-1988.
For real.
Posted by: getaclue on November 17, 2010 at 1:38 PM | PERMALINK
Please continue, conservative teacher.
What are your views on who will help the ones who can't get jobs? Because you know there is a shortage of jobs out there, regardless of people who want to work.
And folks without jobs still need health coverage, food, a place to sleep so they aren't living out a box behind their kids school.
Aren't you oversimplifying the remedies of social ills, denying everyone because some folks take advantage. Do you like being stopped going out of Wal-mart while they check your receipt, because the corporation suffers losses? I do not, but they get to do it. I am a shoplifter until my receipt clears my name. And that is what you are saying about anyone using social programs.
Oversimplification of social ills doesn't help the social ills. Working toward a better future for everyone is hard but its a better option than regressing back to where no one gave a damn. Take Back American [fist pump].
Sigh....
Posted by: Sadly on November 17, 2010 at 1:57 PM | PERMALINK
Krugman described this recently as the "triumph of Reagan over Friedman". Up until recently Friedman's prescription of the Fed to manage monetary policy was the answer to recession. Reagan's "the government is the problem" discourages even that. Pence's assertion that the onus fall's on the administration and the Congress implies fiscal policy to improve the economy -- which Republicans also disapprove of. Which really leaves don't do anything and hope everything turns out ok.
I guess we have to get used to faith-based economics as well as faith-based scientific and social policy.
Posted by: patrick II on November 17, 2010 at 3:13 PM | PERMALINK
I don't think the Republicans may have thought out their cunning plan thoroughly enough; in 2012, THEY will be part of the problem.
Every economic policy the GOP/Tea Baggers support and want to enact will simply ensure a double-dip recession. Nor will the Republicans be able to count on a low voter turnout in 2012; after all, it will be a Presidential election. The Republicans no longer have minority status in the House and, so cannot play the "victim" of the mean ole Dems any longer. Undoubtedly the House Republicans will try to punt and blame the mean ole Dem Senators, but making it stick is something else altogether. A majority of the voters in 2010 want BOTH parties to compromise to get things done in DC; the GOP won't find it nearly as easy to blame the Democrats for all the problems when they're the ones in such highly visible positions as Speaker and Majority Leader of the House.
Then there's the Tea Baggers themselves. How many Representatives were nominated by those voters? How many non T/B Republicans were elected only because of those Tea Bagger voters? How many Republicans want find out? How many of those T/B voters won't support a "moderate" Republican (anyone to the left of Pinochet) and threaten to primary any establishment Republican that doesn't heed their demands?
And this will all be good for their re-election how?
Posted by: Doug on November 17, 2010 at 7:54 PM | PERMALINK