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By Tim Price, originally published on Next New Deal

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The Economic Challenge Ahead: More Jobs and Growth, Not Deficit Reduction (Robert Reich)

Reich writes that deficit hawks are still getting to frame the debate in Washington, and they aren't interested in using that power to push for solutions to real problems like unemployment or even fake problems like the deficit they're supposed to be hawking.

CBO: Turns out austerity is bad for the economy (MSNBC)

Ned Resnikoff notes that a new report from the CBO shows that recent efforts to cut government spending and reduce the deficit have resulted in slower growth, an outcome that could only have been predicted by anyone who understands the concept of subtraction.

Postal Cuts Are Austerity on Steroids (The Nation)

John Nichols argues that forcing the U.S. Postal Service into a death spiral of spending and service cuts is both an assault on public services and a breach of constitutional responsibility. Rain and snow can't stop the mail from getting through, but Congress might.

How Effective Is the Safety Net? (CBPP)

Robert Greenstein writes, contra Kristof, that government assistance like food stamps and Medicaid has kept tens of millions of Americans out of poverty, but even with those programs to keep us from falling, we need a less rickety ladder to help us climb upward.

Wonder Warren (Prospect)

David Dayen notes that by helping to launch an investigation of the very inaccurately named Independent Foreclosure Reviews, Elizabeth Warren is turning the bright new spotlight that's been shined on her right back onto the darker corners of finance and regulation.

The .03% Solution (ProPublica)

Jesse Eisinger writes that as Europe presses ahead with a financial transaction tax, the U.S. should embrace it as a way to raise some much-needed revenue and dial high-frequency trading back down from its current "just mainlined a can of Four Loko" setting.

Emperors of Banking Have No Clothes (Bloomberg)

Anat Admati and Martin Hellwig argue that banks don't have much of a leg to stand on when they complain that tougher regulation would be too costly for them, especially when their alternative is for taxpayers to act as a combination trust fund and bail bondsmen.

Why the Government's Lawsuit Against Standard & Poor's Matters (Our Future)

Richard Eskow writes that taking S&P to court for its mortgage practices is a good idea not just because there's a mountain of evidence that the agency committed serious fraud, but because their overall job performance is barely worthy of a junk rating.

E-Mails Imply JPMorgan Knew Some Mortgage Deals Were Bad (NYT)

Jessica Silver-Greenberg notes that court documents from a suit against JPMorgan show that the bank and the firms it acquired during the financial crisis treated critical appraisals of their products as a rough first draft of the glowing reviews investors would read.

Stupid things traders say: The five most incriminating exchanges in the new Libor case (WaPo)

Danielle Douglas rounds up some choice quotes from the email dump from the CTFC's Libor investigation, and look, guys, I don't want to tell you your business, but there must be a darkened parking garage somewhere you could be having these chats in person.

Tim Price is deputy editor of Next New Deal. Follow him on Twitter @txprice.

Originally posted to Daily Kos Economics on Thu Feb 07, 2013 at 06:58 AM PST.

Also republished by Daily Kos.

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Comment Preferences

  •  DeNile has a very strong current. (3+ / 0-)

    I would wager that even most kossacks are not prepared to fight it if it involves anything messier and less convenient than electoral politics. And it does. In fact, many kossacks don't really see much urgency for significant change in economic policy. Otherwise they wouldn't satisfy themselves with clearing the low bar of engagement in electoral politics.

    The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries. -WiA "When you triangulate everything, you can't even roll downhill..." - PhilJD

    by Words In Action on Thu Feb 07, 2013 at 07:30:01 AM PST

    •  The Site Was Founded for Electoral Politics so Its (3+ / 0-)
      Recommended by:
      dorkenergy, Oaktown Girl, RichM

      little surprise that a majority here would not look beyond that approach.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Thu Feb 07, 2013 at 07:44:19 AM PST

      [ Parent ]

      •  Presumably the intent is to get things done, (0+ / 0-)

        not just exercise. If getting particular results in the world is the intent, and electoral politics is not delivering, then I would hope and expect that people, even kossacks, would stretch beyond the limits of electoral politics. The 2/17 rally in DC for Climate/Keystone, for example...

        The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries. -WiA "When you triangulate everything, you can't even roll downhill..." - PhilJD

        by Words In Action on Thu Feb 07, 2013 at 09:18:50 AM PST

        [ Parent ]

        •  Indeed. One would hope. n/t (0+ / 0-)

          If "elitist" just means "not the dumbest motherfucker in the room", I'll be an elitist! - David Rees from "Get Your War On". //"Man will never be free until the last king is strangled with the entrails of the last priest." - Denis Diderot

          by Oaktown Girl on Thu Feb 07, 2013 at 02:57:31 PM PST

          [ Parent ]

      •  True, but it's important to also mention (0+ / 0-)

        people are force-fed propaganda from birth that the only meaningful way to enact change is through electoral politics. It keeps the masses in line and controllable.

        If "elitist" just means "not the dumbest motherfucker in the room", I'll be an elitist! - David Rees from "Get Your War On". //"Man will never be free until the last king is strangled with the entrails of the last priest." - Denis Diderot

        by Oaktown Girl on Thu Feb 07, 2013 at 02:49:02 PM PST

        [ Parent ]

    •  DeNile? (0+ / 0-)

      I don't know if this is a take-off on "denial" or it means something else. If something else, more info, please!

      If "elitist" just means "not the dumbest motherfucker in the room", I'll be an elitist! - David Rees from "Get Your War On". //"Man will never be free until the last king is strangled with the entrails of the last priest." - Denis Diderot

      by Oaktown Girl on Thu Feb 07, 2013 at 02:40:10 PM PST

      [ Parent ]

    •  What electoral Polititics (0+ / 0-)

      Never before in this young country's history has any country suffered two similar coups and survived. Everyone is focused on the current economic catastrophe which destroyed our economic system, ignoring the K Street coup of the last twenty years which silenced the American voter, placed all power in the lobbyists and corporate welfare gang. Add to that the effect of Citizens United and the “speech” of the individual citizen was silenced.

      When lobbyists for special interests write 82.1 % of the legislation for Congress, democracy cannot be said to exist. It was the K Street gang which bribed Democrats and Republicans to avoid meaningful regulatory environments for the Banks, the Wall Street Brokers and the speculative markets and health care reform. If you think you live in a democracy, you are dead wrong and the lobbyists have won and the corporate state (fascism) is here. This is not alarmist or fear-mongering. IT is a fact.

      “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”
       ~Benito Mussolini -1939

  •  That's why they talk about money, (1+ / 0-)

    Makes it easier to continue the rape,robbery & pillage of us. We must don't know whats going on thats important. Plus the RW MSM talks about nonsense like Beyonce lip syncing and other entertainment BS. We have to talk about people and jobs. Fix the jobs deficit will fix the deficit, something simple for the stupidest to understand.

    They don't  talk about people because they don't care. Props to them for being able to lie so effectively & for their persistence. But they do have really big money behind them.

  •  When? I'd Say They Learned It in 1933. (6+ / 0-)

    Washington doesn't misunderstand the economic reality that creates an equitable economy with opportunity and justice for all.

    Washington, both its 2 conservative parties, opposes that reality.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Thu Feb 07, 2013 at 07:45:56 AM PST

  •  Robert Reich: (3+ / 0-)
    Recommended by:
    dorkenergy, Oaktown Girl, RichM
    Deficit hawks and government-haters are still framing the debate. That bodes ill for all of us.

    He neglected to mention the corrupting influence of big money; but if we suddenly decide to live under a benevolent dictatorship - I nominate this guy.

  •  There needs to be... (0+ / 0-)

    Some polar opposite of the Laffer Curve.  Something like for every tax dollar cut and government spending curtailed, we can expect x amount of jobs lost and y amount of wealth to shift to those who already have it.

    'Guns don't kill people, video games do - paraphrased from Lamar Alexander (Sen-R-TN)'

    by RichM on Thu Feb 07, 2013 at 03:37:33 PM PST

  •  Greenstein writes that Kristof is wrong (0+ / 0-)

    about poverty being higher now as a proportion of the U.S. population than in 1969.  Kristof bolsters his claim from census and commerce department reports from that period.  In order to claim Kristof is wrong, Greenstein relies on a change in the way the poverty rate has been figured since the 1990s based on a recommendation by the National Academy of Sciences.  Poverty measures since the NAS guidelines were established include more than income; all other means-tested government benefits are are now included in a "comprehensive measure of poverty."  

    Based solely on income reported through census and commerce surveys, Kristof is correct in claiming that a larger percentage of the population lives in poverty today than in 1969.

    All this argument about poverty rates stems from one small paragraph consisting of two sentences in Kistof's article:

    Since President Lyndon Johnson declared a “war on poverty,” the United States has spent some $16 trillion or more on means-tested programs. Yet the proportion of Americans living beneath the poverty line, 15 percent, is higher than in the late 1960s in the Johnson administration.
     This paragraph is tertiary to the main thrust of Kristof's article, which is information contained in a new book, “Giving Our Children a Fighting Chance,” by Susan Neuman and Donna Celano.

    The book focuses on the differences in two sections of Philadelphia, affluent Chestnut Hill and the low income area of Germantown and how the opportunities for early childhood development differ.  The affluent area, both through public and private access to information and learning (books, magazines, computers), as well as parenting strategies creates upward mobility for their children - evidenced as early as age two - that children from the low income area can not access.  The inequalities in opportunity continue as poor childrens' access to public facilities (playgrounds, parks) is limited and schools in poor areas are substandard.

    This results in the perpetuation of poverty in poor communities,  poverty built into the system regardless of other public benefits these communities receive.
    Kristof's article is here.

    "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

    by SueDe on Thu Feb 07, 2013 at 04:51:35 PM PST

  •  Economics is a political science. (0+ / 0-)

    The problem is that we cannot discuss economics without interjecting politics. Once you get politics into the discussion, any chance of economics being a science is impossible. Economists themselves cannot separate themselves from this problem either. Economists are paid by interest groups to get the results demanded. It is very rare to find one that is not dogmatic. Politicians hunt for economists that support their views and they always find them. The issue is that macro economics is an immature science and it will likely always be one. There are too many variables in an economy for any model to be accurate. That is why we have to follow the advice of prudent economists who are by nature careful, deliberate and knowledgeable about history. The right wing economists have to rewrite history in order to prove their positions. The left wing economists will not get coverage because what they end up advising is opposed to the interests of the folks who hire economists. We know what works and what does not work. All we have to do is wake up.

    Do facts matter anymore?

    by Sinan on Thu Feb 07, 2013 at 05:23:19 PM PST

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