Tag Archives: Deficit Reduction

TRUTH-TELLING IS NON-PARTISAN,by Louise Annarino,1-4-2013

TRUTH-TELLING IS NON-PARTISAN,By Louise Annarino,1-4-2013

 

It was very difficult for the young recent OSU graduates to find jobs. One young man papered the walls of his dorm room with rejection slips. Others gave up the hunt for professional positions and became sales clerks, bar tenders and wait persons. Many returned to graduate school, piling up more debt, as aid to higher education failed to keep pace with increasing costs.

 

The recession was in full force. A war was ending, soldiers competed for jobs. Too many veterans suffered from PTSD, drug or alcohol addiction, joblessness and homeless. Delayed services by the V.A. and the declining economy complicated their return.

 

Companies were closing research and development departments, outsourcing jobs and off-shoring manufacturing plants. Some argued the loss of small businesses  and replacing local shops with shopping malls was good;t hat economies of scale would keep the price of goods down.Union busting was the new normal. The president himself  approved “scabs” to cross picket-lines,for the good of the airline industry.

 

Small family farms were unable to compete with mega farms;entire farm communities disappeared despite Farm-Aid concerts.Some argued that economies of scale would keep food prices down.

 

Lower income levels created tension between the age groups. School levies were no longer so easily passed. Small schools were combined to create economies of scale, losing the familial feel which had existed in neighborhood schools where every teacher knew every child in the school.Taxpayers resented the extra student perks such as school bands,art and theatre and music programs,and field trips. And, they resented the teacher perks such as summers off.

 

De-regulation was the cause celebre’ of business. Environmentalist climbed into the forest canopy and cut fish nets to protect the forests and oceans, and were snidely called “tree-huggers” and radicals. Ecology was not viewed as real science. Civil unrest by young persons protesting racism,sexism,homophobia and class warfare was contained by military-style response.

 

A few years later a charismatic and popular president was elected and gave people hope that things might change. But by then, many argued that the poor and working poor were really free-loaders looking for government handouts. The president agreed that “government was the problem not the solution” and should be made leaner and meaner,and thus fairer to wealthy job creators whose increased wealth trickled down to the masses.

 

Meanwhile,politicians reframed the focus of the nation from a community working together for the common good  to everyone can make it big. People were encouraged to invest in the stock market,open 401Ks and build a portfolio of wealth. Anyone who failed to make it rich in America just did not work hard enough or smart enough;and was underserving of support by those who did the right thing. We came to view people as big thinkers and doers or small thinkers and doers. Economies of scale were considered good for the social order.

 

The young graduates,with huge education loans and low-paying jobs were told the right thing was to use 1/3 of one’s income to pay living expenses,put 1/3 into savings/investments, and give 1/3 to charity. Doing this would assure a secure retirement and make social security unnecessary. Doing this would assure the poor would be cared for through private charity and make welfare,food stamps and medicaid unnecessary. Young people were told that social security and medicare were unsustainable and too costly, and would not be available when they retired. Elderly were described as free-loaders who felt entitled to government care, depriving young people of a chance for a strong economy in which they could thrive. They were told it was better to create a private retirement investment portfolio on Wall Street with a much higher return than any FICA tax could provide for them.

 

Doesn’t this sound like today’s headline stories? This was happening 35 years ago. This is my generation’s story.We were warned we would have no social security when we were ready to retire. We are now retiring, with social security. The fear-mongering was not true 35 years ago. And, it is not true now. And, thanks to President Obama, we do not see the massive savings and loans/bank failures experienced 35 years ago. Thanks to President Obama we see an increase in manufacturing;an entire auto industry saved and made more profitable, not lost like the steel and aluminum industries were lost 35 years ago. And, thanks to President Obama we do not have high inflation rates as we did 35 years ago.

 

I worry about putting social security on the table while discussing deficit reduction. Social Security has no relevance to the creation or elimination of the deficit. That will be easily explained. But, I expect the old attacks on Social Security will once again be trotted out to misinform and mislead younger voters. It will be framed as a job destroyer, siphoning off money which could be used to create jobs. It will be framed as a scourge on the growth of private retirement portfolios. It will make enemies of young underemployed recent graduates of this generation and those of my generation. My generation will recognize it as a pack of lies,because we have seen the lie exposed over time. But will the young believe us, or those who would lie to get their hands on a big chunk of change.  Investment managers will be tempted to take big risks to make big personal gains, which could leave future retirees holding an empty retirement bag. We now-old young people have watched this happen over and over again. We recognize the game.

 

We are being encouraged to raise this issue with our president,senators and representatives. And, we should do so.  We must also discuss this issue with younger people .This is an issue which should cross age barriers, not create new barriers. This is a chance to make our party stronger and more united. We cannot pass up this chance to strengthen our bonds. The republicans certainly will do all they can to weaken them. After all, they are even willing to default on our debts and throw the world’s economy into chaos, just to destroy social security,medicare and medicaid. This is serious business,and has been for decades.

 

This should not be a partisan issue, but it is. My republican friends will assure me they would never destroy these programs. They will argue that Democrats are no different than Republicans; that even the president says we agree on almost everything, including the need to fix entitlement programs. This is well and good.But we cannot ignore the differences set in stone in each party’s platform. Democrats promise to protect entitlement programs. Republicans promise to eliminate or reduce them. These positions are not the same;they are world’s apart. We must hold Democrats and Republicans equally accountable. Truth-telling is the only way to be non-partisan.

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NOT CAN,BUT HOW? THE BUDGET AND DEFICIT REDUCTION,By Louise Annarino,November 9,2012

NOT CAN,BUT HOW? THE BUDGET AND DEFICIT REDUCTION,By Louise Annarino, November 9, 2012

At President Obama’s first press conference he stated a willingness to consider any idea which fairly addresses the nation’s fiscal needs. However, he clearly and unequivocally asserted that taxes on earnings above $250,000 must be increased. He went further asking congress to immediately extend tax cuts on earnings below $250,000 rather than waiting for negotiations on deficit reduction and balancing the budget plays out,stressing the need for stability and certainty for small business owners.

In effect, the president seeks to stabilize small businesses and encourage their creation and expansion, and continue tax policies which economists agree will stimulate middle class spending, and which will help those small businesses grow. This is basic and sound fiscal policy upon which any honest politician, of either party, could easily agree. The only reason Boehner might not agree is to use the middle class and small businesses as a political tool to continue to shelter wealthy supporters and their corporate interests, at the expense of average Americans.

Republicans also make no secret of their intention to eliminate, starve into extinction, or privatize the social safety net: social security,medicare,medicaid,food stamps,WIC,unemployment compensation etc.

Will Rep. Boehner insist on continuing tax breaks for Big Oil while  delaying the Social Security retirement age for a woman who stands on her aching feet all day at a cash register, or a mechanic whose arthritic hands can no longer twist a wrench without pain, or a security officer who must chase a teen robber up and over a fence? Or will he agree instead to lift the cap on FICA taxes,increasing contributions from higher income earners? Such choices matter.

Will Rep. Boehner insist the Ryan Budget must be accepted in whole or in part before the House is willing to even consider the President’s Jobs Bill? Will veterans continue to wait for House Republicans to approve a veterans’ jobs program included in the president’s bill? Will farmers wait for House Republicans to pass the Agriculture Bill unless it contains Ryan’s proposed cuts of $1.6 billion dollars a year (four times the amount spread over five years in the bi-partisan bill passed by the Senate) to food stamps, WIC (women,infants and children),and meals on wheels for seniors and the disabled? Why must we wait?

What can we do to put a stop to such nonsense? ASK our Republican representatives and senators to answer questions regarding their positions on specific cuts. TELL our Democratic representatives and senators that we expect them to stand strong and speak out on our behalf. Remind both that they will soon be up for re-election and that we will not forget what they do.

The news pundits,once again,focused on whether a deal can be reached with Boehner since Obama is willing to compromise, discussing the need for Democrats to give a little. Chris Mathews even suggested the president should appoint Mitt Romney Secretary of Business, chuckling that he would not do so, but should do something like this…throw Boehner a bone? No,such talk is throwing over an election, throwing over the middle class. The first person Andrea Mitchell interviewed for reaction to Obama’s press conference today was  House Assistant Democratic Leader James E. Clyburn (D-SC) who concurred that when negotiating everything must be on the table. Feeling a bit nervous, I listened  to him then suggest that even social security would have to be reworked because we want  it and programs such as medicare and medicaid to be there in the years ahead. Okay, I thought, that is a no-brainer. But then he suggested one likely change is delaying the age at which one may receive benefits. There are alternatives methods to reducing program costs which don’t deprive people of, or delaying access to, benefits they have a right to rely on, and which they desperately need to survive with dignity.

Social Security, Medicare, Medicaid and food stamps are not frills. They are not “stuff.” These programs are life support. We are not a poor nation;we are a very rich nation. Budgets define our priorities in this country; and, not our wealth. We can reduce the deficit and balance our budget over time. Either party is capable of doing so. The real issue is not can we do so; but how we do so. Hopefully, we do so while maintaining life support for the aged, the disabled, the hungry, the unemployed, the uneducated, and even the planet itself. We count on our president and our Democratic senators and congressmen to remember this, and to fight for us. John Boehner will be fighting for his political life, and the survival of his party; but, unless I miss my guess,not for us.

Central Ohio Contact List ( Rep.Joyce Beatty (D-OH) info not yet available):

 

Rep. John Boehner (R-OH)

(202)225-6205

(202)225-0704 Fax

Rep. Pat Tiberi (R-OH)

3000 Corporate Exchange Drive,Suite 310

Columbus, Ohio 43231

(614) 523-2555.

(614)818-0887 Fax

 

Rep. Steve Stivers

3790 Municipal Way
Hilliard, OH 43026
(614) 771-4968
(614) 771-3990 Fax

Joyce Beatty for Congress

233 S High St Ste #300

Columbus, OH 43215

614-600-4231

beattyforcongress@gmail.com

 

Senator Rob Portman

37 West Broad Street,Room 300

Columbus, OH 43215

(614)469-6774

Toll-Free: 1-800-205-6446

 

Sen. Sherrod Brown

(614) 469-2083

(202)224-2315

Toll Free : 1-888-896-6446

 

 

 

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REPUBLICANS SPEAK WITH FORKED TONGUES RE: SMALL BUSINESSES, By Louise Annarino,July 14,2012

REPUBLICANS SPEAK WITH FORKED TONGUES RE: SMALL BUSINESSES, By Louise Annarino, July 14, 2012

 

My first small business was collecting newspapers and magazines from the garbage cans along the alley running beside our house when I was first old enough to pull a wagon. My Mother watched me and my brother as we trudged along pulling our load across the street to Mr. Schombarger’s junk yard. We placed the full wagon on the scale built into the roadway after the heavy trucks had cleared;then, climbed up the steps to the loading dock to watch the weight register on the huge scale above our heads. “Remember the numbers”, Mr. Schombarger would remind us. Next, we ran down the steps to empty the wagon’s contents into a bin provided by a worker, and pulled the empty wagon back onto the scale. “Okay, kids, come up and watch the numbers again”,said Mr. Schombarger, as he weighed the empty wagon. Subtracting the numbers gave us the weight we would be paid for our load. We were rich! Our business kept us in penny candy from Mrs. Rowe’s corner store every night, with an ice cream cone once a week, and if we saved our money, an occasional comic book. Whenever we needed more money we collected more paper. We were our own market.

 

I also ran errands for neighbors for ten cents (to Mr Van’s or Mrs. Rowe’s neighborhood groceries), for a quarter for a trip to the A&P uptown; cleaned woodwork and washed windows, a quarter; and helped with babies, free service. When I was 12 I began babysitting for $1 per child per night.

 

My brother had a paper route. Being a girl, I was not eligible for a route. He graciously offered me a chance to make some cash. If I delivered all his papers and made his route collections I got to keep 10% of his salary. I fell for the scam. I loved working, and getting around the sexist system firmly in place. Women still work the same jobs for less money. Some things never change. Ask Lily Ledbetter.

 

I once earned enough money to take my entire family to the New York World’s Fair for a full week by making fondant-rum candy shaped and decorated like small pieces of fruit. My father noticed my experiment, took the dish to his restaurant the next day and came home with 35 orders. Every day after school for months I made 30-50 dozen candies, placing 12 on each milk glass bowl lined with green Easter grass. Seeing the World’s Fair was a dream come true. Running a small business is in my blood. My dad and uncles had a small business for 38 years, The Center Cafe. It is daunting, calls for daring, and is plain hard work with long hours.They are our country’s economic lifeblood.

 

Everyone agrees small businesses are the engine driving America’s economy. Small firms of less than 500 employees make up 99.9% of America’s businesses. (see more at  http://www.smallbusinessnotes.com/small-business-resources/how-many-small-businesses-are-there.html). Of these, 96% have 50 or fewer employees.(see more at   http://useconomy.about.com/od/glossary/g/small_businesses.htm Only 3% of small businesses earn more than $250,000 per year. Approximately 70% of the wealthy don’t own a small business. Obviously, the wealthy 2-3% don’t want the amount they earn above 2% to lose overgenerous tax breaks. But they argue a different story.

 

Despite these facts, to president Obama’s announcement that he would ask Congress to extend the Bush tax cuts for incomes below $250,000, Mr. Romney replied this is an unacceptable and burdensome tax increase on small business,never mentioning the impact on his very large business income. Congressional Republicans expressed their opposition stating that many small business owners report their business income as personal income. But, as the president correctly points out the tax increases is only on the amount earned over $250,000; and, it affects 3% of small businesses. Under the president’s plan 98% of households and 97% of small businesses would receive a tax cut. (see more at New York Times (7/10/12)

 

The factual distortions of Republican leadership, including those of presidential candidate Mitt Romney, Sen. Rob Portman (R-OH) and House Leader, Rep.John Boehner (R-OH) each of whom should know better, do not serve the country well.  If the tax cuts expire for earnings $250,000 and up, the deficit could be reduced by $700 billion over the next 10 years. (For more, see Extend Bush Tax).

 

Yesterday, the Senate Republicans blocked The Small Business Jobs and Tax Relief Act using the filibuster to keep a vote from even reaching the floor. The bill gave business tax credits up to $500,000 for boosting payroll,thus hiring more workers. It gave a 1 year extension a 100% rate under which businesses can claim bonus depreciation tax deductions on capital investments to install new equipment, open more manufacturing lines etc. (see more at (http://influencealley.nationaljournal.com/2012/07/senate-republicans-block-small.php). The bill was estimated to create  nearly 1 million jobs, 650,000 in small mom and pop operations by use of a cap. Next week, Republicans are expected to block a bill which would give tax breaks to firms returning overseas jobs to the U.S. and raise taxes on companies that off-shore. Certainly, Mr. Romeny can’t be happy about the impact such a law would have on his off-shore ventures.

 

The rational given by Republican for blocking the bill that it was overpolitical underscores the true reason for blocking a bill which would move forward the country’s economic recovery…to block President Obama’s re-election at the expense of small business growth and more jobs here in the U.S.  While decrying the lapse of tax credits to earnings above $250,000 because of their distorted claim of a negative effect on small business, while blocking bills in support of small business is the height of Republican hypocrisy. Using the filibuster to play political games is immoral bully-behavior and we must call them out for such irresponsible and destructive behavior towards this country and its people’s welfare. The president has the bully pulpit; but,the Republicans are simply bullies who attack each of us to get to him. (see more at http://www.bing.com/videos/watch/video/republicans-filibuster-small-business-bill-block-job-creation/6dlhw1l?from= ).

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