Yes, We Need a Jobs Program, But One
That Doesn’t Tinker Around the Edges

By Carl Davidson
Keep On Keepin’ On

Our regional daily newspaper, the Pittsburgh Post-Gazette, to its credit, came out with an editorial today, Aug. 22, 2011, urging President Obama to push for a substantial jobs program over Republican opposition.

“Action on jobs: Obama must push hard to get people back to work” is the headline, and a key point stresses “Mr. Obama now needs to offer proposals equal to the size of the problem. That means bold strokes, not half-measures. If his Republican antagonists in Congress are determined to stand in the way of getting Americans back to work, the president must say so publicly — and then go over their heads to enlist the nation in his effort.”

Terrific, a good framing of the question. Unfortunately, however, once you get into the substance of the piece, it turns into a muddle. The Post-Gazette offers up a hodgepodge of proposals that tinker around the edges of the problem-more tax cuts and credits for jobs created, more unemployment benefits, and oddly, more trade deals, even though these deals mostly result in net job losses.

Here’s the heart of the matter. In a down economy, jobs are created by increasing demand, by more customers with bigger orders coming to a firm’s doors. The problem is that consumer demand has taken a nose dive when the credit bubble burst. People don’t have money to spend. They’re cutting back on everything, and trying to unload their debt. This means business-to-business orders shrink as well. Companies may be cash-rich and have high profits, but with no increase in orders or customers at their door, they aren’t likely to hire people to do nothing just to get a tax credit.

This is where government has to become the key customer. It has to make huge productive purchases for local work and local materials to build productive infrastructure-county-owned green energy plants, new and improved schools, modernized locks and dams, Medicare for all, investment in young students and veterans like we did with the GI Bill, investment in research in new industries, and so on.

Most important, to work well, it can’t be nickel-and-dimed to death. It has to be on the scale of the expenditures for World War 2. That’s when the ‘multiplier effect’ can kick in, and related growth in manufacturing can take off in turn. And it has to be paid for by going to where the most appropriate money is, imposing a financial transaction tax on unproductive and destabilizing speculation by Wall Street.

The best the P-G does on this matter is to support Obama’s proposal for an ‘Infrastructure Bank,’ but urges him to find a way to bypass a GOP roadblock in Congress.

But even that is too passive. It says, in effect, here’s a small pot of money. If you want to repair some roads, come and get some.

What we really need is something like the New Deal’s Tennessee Valley Authority and Works Progress Administration, but on steroids, a TVA-WPA-CCC 2.0. We need to pass John Conyer’s HR 870 Full employment Bill. We need the Dept. of Energy and the Dept. of Labor to go to every county in the country with a fully funded proposal to build new green energy wind farms and solar power arrays as public energy utilities, hiring local workers at union scale, with no obstacles to a union election. And that’s just for starters.

Yes, we need a serious jobs program. But it’s time for everyone who utters that phrase to get serious themselves. Why? Because it’s going to take a massive upsurge in class struggle to get it by removing those standing in the way.

[Carl Davidson is a Steelworker Associate and a retired computer technician living in Beaver County.  His ‘Keep On Keepin’ On’ column appears in Beaver County Blue, website of the 4th CD Progressive Democrats of America.]

Shock Doctrine as a Two-Way Street:
The Approaching Winter of Our Discontent

By Carl Davidson
Keep On Keepin’ On

Watching the rebellions of the young and poor continue in London and now spread to other industrial centers in the UK raises an interesting question: Will the Arab spring and the European summer lead to a fall and winter of discontent here in the USA?

All the makings for it are here. We have impoverished communities of the unemployed where there are huge numbers of young people who have never had a regular job of any sort. Now that any form of taxing the rich for funding a jobs program like that proposed by Rep. John Conyers’ HR 870 has been declared ‘off the table,’ it doesn’t appear likely to change, either.

Add to that the GOP’s ‘Shock Doctrine’ (with an assist from the White House) of creating a neoliberal deficit hoax to take from the working class and give to Wall Street, and you spread deeper misery across all of Main Street.

Now the AFL-CIO, thank goodness, is calling for a new round of mass actions against austerity and in defense of the tattered safety net. Add to that the October2011.org project, where the peace and justice movement is planning to camp out in downtown DC’s Freedom Plaza until all the troops are brought home from the wars.

It’s a perfect storm shaping up.  Hopefully, many of our young unemployed and under-employed will be drawn to these events. But any police outrage could set off a chain reaction like those in London-we’ve seen this many times in our history.

We have a few decent politicians facing up to the problem, like the 80 votes of the Congressional Progressive Caucus behind the People’s Budget. But our top political class has declared their efforts ‘off the table,’ too.

In brief, they’re telling us our views don’t count and we have nowhere to go.
That’s what the bigwigs in London thought, too. Now they’re all in a tizzy about riots and violence. In contrast, in one NBC report, a young man in Tottenham was asked if rioting really achieved anything:

“Yes,” said the young man. “You wouldn’t be talking to me now if we didn’t riot, would you? Two months ago we marched to Scotland Yard, more than 2,000 of us, all blacks, and it was peaceful and calm and you know what? Not a word in the press. Last night a bit of rioting and looting and look around you.”

Of course, many small shops and working-class homes, unfortunately, are being harmed in the UK events. Street heat is best when the target is narrowed on the upper class, and you keep the moral high ground. That way you can draw even more millions into relatively peaceful assembly with powerful and lasting implications. But when long-ignored social dynamite explodes, things don’t always work out that way, with the well-controlled niceties of a tea party, no pun intended.

It is right to rebel against outrages and unjust conditions imposed from above. The ‘Shock Doctrine’ is a two-way street, and once it erupts, more than you might think will know which side of the barricades to gather on.

Lies, Blue Smoke and Mirrors: The Neoliberal-Tea Party Jobs Plan at Work

By Carl Davidson

File this under the ‘Why is Anyone Surprised Dept?’ 

This morning’s Pittsburgh news media lets us know that more and more Pennsylvanians are unemployed. Particularly,  it’s in ‘Unemployment rate up in Pennsylvania’ in the Pittsburgh Business Times by Paul J. Gough.

What’s interesting is how it gets spelled out:

“Pennsylvania’s unemployment rate rose slightly in June as the Commonwealth followed an upward trend of national jobless data that has been rising since the spring.

“The state’s unemployment rate was 7.6 percent in June compared to 7.4 percent in May, according to data released Thursday afternoon by the Pennsylvania Department of Labor & Industry. That translated into a net of 2,600 jobs lost to a total 6.3 million people employed in Pennsylvania. Specific data for Pittsburgh won’t be released for several weeks, but unemployment increased in Pittsburgh to 7 percent in May, the most recent month where data is available.

“Much of the decreases were due to 7,800 jobs cut in education, health and social services. Also losing jobs were financial (2,000 jobs), leisure and hospitality (1,400 jobs), and professional/business services (1,700 jobs).”

What this means is that our GOP governor’s plan is working as designed. He and others of his ilk are determined to slash government spending on social services and the work force that provides them.  Now if we combine this with taking money from low-income and middle-income workers, and give it to the superrich as tax cuts, we can help the ‘recovery’ of the wealthy by reducing consumer demand from the rest of us.

Now put these two planks together, and you have the GOP-Blue Dog-Tea Party plan for employment, and as we can see, it’s working rather well.

Of course the numbers are going in the opposite direction from what they’ve been claiming will happen. Maybe we just need even more layoffs and even less spendable income at the bottom, and then we’ll really see things take off!

Now Obama’s problem is buying into this. But if he’s going to sell it beyond the business press, it’s going to need a sales team with a lot of lies, blue smoke and mirrors.

Why we still need a serious clean energy and green manufacturing stimulus on the scale of WW2 spending Dept.

Paul Krugman hits the nail on the head in today’s 7/11/11 NYT:

“Excuse No. 4: We tried to stimulate the economy, and it didn’t work.

Everybody knows that President Obama tried to stimulate the economy with a huge increase in government spending, and that it didn’t work. But what everyone knows is wrong.

Think about it: Where are the big public works projects? Where are the armies of government workers? There are actually half a million fewer government employees now than there were when Mr. Obama took office.

So what happened to the stimulus? Much of it consisted of tax cuts, not spending. Most of the rest consisted either of aid to distressed families or aid to hard-pressed state and local governments. This aid may have mitigated the slump, but it wasn’t the kind of job-creation program we could and should have had. This isn’t 20-20 hindsight: some of us warned from the beginning that tax cuts would be ineffective and that the proposed spending was woefully inadequate. And so it proved.”

I’m printing out this quote, and together with a bunch of labor activists, I’ll drop it off today at my Blue Dog Congressman’s office. Since I doubt it will do much good with him, I’ll pass it around to everyone else, preparing for bigger and tougher vattles to come.

Carl Davidson ranting:

Watch CNN reporting on the economy this afternoon, and many prior similiar shows, I’m sick of the airheads, both commentators and guest economists, who refuse to say the simple truth that in a down economy, jobs are produced BY INCREASING DEMAND!  It’s demand, stupid!  Business hires more workers when they have more customers and can’t keep up with the orders. Tax and regulation adjustments are way back on the list.  What’s more, they can’t get it through their heads that there are not a zillion consumers sitting around with piles of money just waiting to buy things, if only the righ got one more tax cut. Consumer buying capacity has shrunk, and not the GOP airheads want to shrink demand by government to boot.

We need WPA/CCC 2.0, a massive green jobs and clean energy stimulus, not the half-hearted one that got half-hearted results earlier on.

Where are the jobs? You’ve been doing you damnest to destroy them by ignoring or short-changing the demand side, that’s where they are.

This is no rocket science. But it doesn’t fit the neoliberal line, so it gets squished in the media. Makes me want to throw things at the TV and throw out any politician who repeats this crap.