Coming Around On The Jobs Crisis

Bob Herbert wonders today if the Obama Administration understands the nature of the jobs crisis. He says that millions of Americans need to get back to work, and if the private sector is unwilling or unable to produce those jobs, then the government must step in. This was the most crucial passage:

The survey for the Economic Policy Institute was conducted in September by Hart Research Associates. Respondents said that they had more faith in President Obama’s ability to handle the economy than Congressional Republicans. The tally was 43 percent to 32 percent. But when asked who had been helped most by government stimulus efforts, substantial majorities said “large banks” and “Wall Street investment companies.”

When asked how “average working people” or “you and your family” had benefited, very small percentages, in a range of 10 percent to 13 percent, said they had fared well.

I think the White House got an advanced copy of Herbert's column, because their message today has a lot to do with jobs. Peter Orszag reiterated that the President is "exploring additional options to promote job creation." Bloomberg covers it as well:

President Barack Obama is considering a mix of spending programs and tax cuts to respond to widening job losses that would amount to an additional economic stimulus without carrying that label.

The discussion of the initiatives, including a boost in transportation spending and an extension of an expiring tax credit for first-time homebuyers, comes as the White House is balancing rising concern about unemployment and a budget deficit the Congressional Budget Office estimates will total $1.6 trillion for 2009, and $1.4 trillion in 2010.

Administration officials have told allies in Congress that a broader transportation bill, and extensions of a homebuyer tax credit and unemployment benefits are all on the table, a Senate aide said.

As well as Herbert's paper, The New York Times:

President Obama’s economic team discussed a wide range of ideas at a meeting on Monday, following his Saturday radio address in which he said it would “explore additional options to promote job creation.” But officials emphasized that a decision was still far off and that in any event the effort would not add up to a second economic stimulus package, only an extension of the first [...]

Among the options for additional steps is some variation on Mr. Obama’s proposal during the stimulus debate to give employers a $3,000 tax credit for each new hire, which Congress rejected last winter partly out of concern that businesses would manipulate their payrolls to claim the credit. Another option would allow more businesses to deduct their net operating losses going back five years instead of the usual two; Congress limited the break to small businesses as part of the economic stimulus law.

Not to mention the WSJ and a separate Times article.

Calculated Risk worked through some of the safety net options the other day. Extending unemployment benefits and COBRA reductions sounds fine, but I don't see exactly how they create jobs - though added consumer spending may save some. The homebuyer tax credit, while popular, is a complete waste of money, costing tens of thousands per new home sold, and it isn't boosting housing and construction to any great degree.

As for the rest, infrastructure spending through the transportation bill would be great, but is the Administration willing to waive paygo rules, or do they have some idea to pay for it? The business tax credit for new hires seems ripe for abuse, as does the "carry-back" provision allowing major tax breaks for corporations. That just sounds like trickle-down economics to me, and thus far it hasn't worked.

Robert Reich has some much better ideas, though he does side with the new jobs tax credit.

Use existing authority under both the stimulus package enacted earlier this year and the nefarious TARP bailout fund -- extending and combining them into a fund to make up for state and local cuts in public school budgets, childrens' health, public health (we need workers to administer swine flu vaccine) and public transportation. Instead of bailing out banks and giant automakers, we should switch to bailing out public services that average people need.

Propose a one-year payroll tax holiday on the first 20,000 of income. Republicans as well as Blue Dog Dems could go along with this, and it would be a highly progressive tax cut since 80 percent of Americans pay more in payroll taxes than they do in income taxes.

Give small businesses a "new jobs tax credit" for every net new job created over the next year. Granted, under normal circumstances this sort of jobs credit doesn't have much effect, and it's difficult to separate hires that would have happened anyway from net new ones. But we're not in normal circumstances; small businesses, which are responsible for most new jobs, still aren't hiring. They need a boost.

Dramatically expand the Small Business Administration's lending programs and have the Fed buy up the SBA's debt. Big banks are not lending to small businesses. TARP has been an utter failure in this regard. The SBA and the Fed should circumvent them and help small businesses get the capital they need, so they can start hiring again.

These might work in separate bills instead of one big stimulus bill that would have a target on its back. There's no question that state aid should be on the top of the list, and I think accelerating infrastructure spending is vital enough that deficit spending makes sense; government interest rates remain low, after all.

More than anything, the Obama Administration has to show through their actions a concern for those struggling right now. The jobs picture is intimately tied to their economic fortunes, so they have every incentive to do so.

The Wrath Of New York Times Editorialists

Is it me, or have the columnist for the Times become strikingly more abrasive toward John McCain lately? Not just the ones you'd expect, like Frank Rich:

SARAH PALIN makes John McCain look even older than he is. And he seemed more than willing to play that part on Thursday night. By the time he slogged through his nearly 50-minute acceptance speech — longer even than Barack Obama’s — you half-expected some brazen younger Republican (Mitt Romney, perhaps?) to dash onstage to give him a gold watch and the bum’s rush.

Still, attention must be paid. McCain’s address, though largely a repetitive slew of stump-speech lines and worn G.O.P. orthodoxy, reminded us of what we once liked about the guy: his aspirations to bipartisanship, his heroic service in Vietnam, his twinkle. He took his (often inaccurate) swipes at Obama, but, in winning contrast to Palin and Rudy Giuliani, he wasn’t smug or nasty.

The only problem, of course, is that the entire thing was a sham.

But the typically more sclerotic Bob Herbert has eaten his Wheaties:

Ignorance must really be bliss. How else, over so many years, could the G.O.P. get away with ridiculing all things liberal?

Troglodytes on the right are no respecters of reality. They say the most absurd things and hardly anyone calls them on it. Evolution? Don’t you believe it. Global warming? A figment of the liberal imagination [...]

Why liberals don’t stand up to this garbage, I don’t know. Without the extraordinary contribution of liberals — from the mightiest presidents to the most unheralded protesters and organizers — the United States would be a much, much worse place than it is today.

Even Republican David Brooks offers a throwaway line in an otherwise banal column that ought to prick up America's ears:

The Republicans are intellectually unfit to govern right now, but balancing with Democrats, they might be able to do some good.

Editorialists from the NYT often appear on chattering class shows and other journalists look to them to understand the themes of the campaign. It'll be interesting to see if lines like "The Republicans are intellectually unfit to govern right now" get repeated.

Tales of the Genius Right Blogosphere

I don't spend enough time mocking the scribes on the other side of the e-aisle, mainly because Sadly No and TBogg and others have cornered that market. But this is really too previous to pass up.

Some dude named Liberty Pundit (I assume Why Do You Hate America Pundit was taken), whose entire site is a link back to himself because his code sucks, has BREAKING MUST CREDIT LIBERTY PUNDIT news!!!

Another Jayson Blair moment for the New York Times? Kinda looks like it, if you look at the article published yesterday and compare it to an article he wrote in October 2005 (reg. required).

Oh noes! Liberty Pundit is on the case of this obvious bit of self-plagiarism. Look at the evidence:

From yesterday’s op-ed:

“You start out in 1954 by saying, ‘Nigger, nigger, nigger,’ ” said Atwater. “By 1968, you can’t say ‘nigger’ — that hurts you. Backfires. So you say stuff like forced busing, states’ rights, and all that stuff. You’re getting so abstract now [that] you’re talking about cutting taxes, and all these things you’re talking about are totally economic things, and a byproduct of them is [that] blacks get hurt worse than whites.”

From the 2005 op-ed:

“You start out in 1954 by saying, ‘Nigger, nigger, nigger.’ By 1968 you can’t say ‘nigger’ - that hurts you. Backfires. So you say stuff like forced busing, states’ rights and all that stuff. You’re getting so abstract now [that] you’re talking about cutting taxes, and all these things you’re talking about are totally economic things and a byproduct of them is [that] blacks get hurt worse than whites.

That's right! Bob Herbert quoted Lee Atwater directly the SAME WAY in two different columns! He didn't even bother to change it to something Atwater didn't say! I'm expecting the resignation letter any day now.

This is a joke, right? Using direct quotes as an example of plagiarism? As far as the rest of his "evidence," it's clear that Herbert returned to the same theme and used new information to illuminate a long-standing point. That's called writing. Which is different from random linking while specks of Cheetos fly from the mouth, or as Liberty Pundit would call it, Tuesday.

UPDATE: Gavin from Sadly No offers the definitive text at Alternet on why it's important to wade through these fetid swamps of lying and misinformation on the right.