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Friday, April 28, 2017

5 CBO Findings About Improving The Economy That Republicans Will Always Ignore

John Boehner
Republicans celebrated a new report from the Congressional Budget Office this week that said raising the minimum wage to $10.10 could cost the economy 500,000 jobs.

Our Joe Conason hollowed out the arguments the right uses against raising wages for America’s lowest-paid workers. Richard Trumka — head of America’s largest labor union, the AFL/CIO — encouraged Democrats to ignore the report and “prove the CBO wrong.” Cook Political Report‘s Amy Walter points out that the report will do little to help Republicans case because “more Americans simply think that a rise in the minimum wage is a good thing for the economy.”

President Obama confirmed that the issue still tops his party’s agenda in a Friday morning speech to Democratic governors, where he said the issue is good policy and good politics, noting that New Jersey voters approved an increase even while electing a Republican governor in a landslide.

However, since Republicans are suddenly listening to what the CBO is projecting, here are five other findings from the non-partisan organization that offer a pretty simple path to growing the economy while reducing the deficit.

Photo: Speaker Boehner via Flickr

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11 Responses to 5 CBO Findings About Improving The Economy That Republicans Will Always Ignore

  1. Interestingly the lack of interest GOP lawmakers show in CBO analysis and conclusions became a rallying point when the CBO concluded that millions of jobs would be “lost” as a result of Obamacare. In that instance, the GOP lost no time highlighting the CBO conclusion as evidence, forgetting that the “lost” jobs involved the flexibility of millions of Americans approaching retirement age to retire before that are eligible for MEDICARE thanks to the Affordable Care Act, and the fact that the “lost” jobs would, in fact, be filled by younger Americans having trouble finding a good job.
    Wouldn’t it be nice if the GOP paid similar attention to the CBO report highlighting the potential benefits of passing infrastructure investment by both the public and private sectors? In addition to creating millions of jobs and reducing unemployment to a minimum, it would help us compete against other industrialized nations by modernizing our seaports, airports, public transportation system, power grid, roads, bridges, and by investing in R&D, education and re-training.
    The greatest threat we face is not caused by Islam, China, and the political struggles that are taking place worldwide as people fight for more freedom, democracy, and a higher standard of living, but by the insistence of some to support policies designed to advance political goals at the expense of our standard of living, and the tools we need to maintain our privileged position in the world.

  2. Jason’s article reminds me not to forget The Simpson Bowles Commission, created by President Obama. It had a series of proposed proposals that outlined a reasonable set of shared pain…..but we need to get past Simpson Bowles.

    Here are my 3 ideas to improve the economy in addition to Jason’s list:

    1 We need to finally End the war on drugs
    2) Create a war on poverty based upon a guaranteed annual income.
    3) Growth through entrepreneurial and small business initiatives backed by tax cut incentives

    1) Billions and billions have been spent on the ludicrous efforts to eradicate drugs. Millions of lives have been lost through drug wars between gangs and other military style interventions. This also includes the incarceration of people unjustly simply because they have an addiction that is caused by brain chemistry imbalances. incarcerated millions and made the situation worse. We need treatment not prisons and preschool through high school prevention programs and education.

    We need to follow the successes of Spain’s model of treating the addicted and decriminalize and tax marijuana….. Facts–not right wing hysteria– shows that legalization does not add to drug use and can generate large revenues. Even world class economists have estimated that legalizing marijuana would save the government $7.7 billion per year on enforcement. Out of all these savings … $5.3 billion would go to state and local governments with $2.4 billion applied to the federal government. The biggest example of success are two states who voted recently to legalize marijuana: Colorado and Washington, are expected to bring in $550 million in revenue combined.

    2) Regarding guaranteed annual income…Back in 1967 Dr. Martin Luther King and highly respected economists both Democrat and Republican, most notably Richard Nixon, proposed this a s a way to eliminate poverty once and for all.

    Concept is outlined here:
    http://www.progress.org/tpr/martin-luther-king-on-guaranteed-income-social-dividend/

    From the article:
    “Rev. Dr. King viewed the guaranteed income as the way to abolish poverty. It does have that effect, but when prRev. Dr. King viewed the guaranteed income as the way to abolish poverty. It does have that effect, but when properly funded (not touching earned income) and properly distributed (to all people), it becomes more than that — it can be a fundamental instrument of economic justice.operly funded (not touching earned income) and properly distributed (to all people), it becomes more than that — it can be a fundamental instrument of economic justice.”

    A guaranteed annual out of poverty level annual income would eliminate all antiquated social programs and nearly all entitlements. It would make this country the leader in eliminating poverty once and for all. In addition, We need livable affordable housing, and a justice system free from big money.

    The article link contains a dollar figure in 1967 as needing 20 billion to do this. In 1967 1 million dollars is now $6,978,113.77.
    7 times factoring inflation: A 1000 million is a billion.
    Therefore—we would need only 140 billion. Easily obtainable by transferring that out of existing trillion dollar social programs.
    The poor are not poor. They pay taxes. have housing and the middle class is resurgent again.

    3) Growth through entrepreneurial and small business initiatives backed by tax cut incentives

    The foremost model for this is the annual Consumer Electronic Shows AKA CES conferences. The International CES is the world’s gathering place for all who thrive on the business of consumer technologies. It is held in Las Vegas every year, it has served as the proving ground for innovators and breakthrough technologies for more than 40 years—the global stage where next-generation innovations are introduced to the marketplace. CES showcases more than 3,200 exhibitors, including manufacturers, developers and suppliers of consumer technology hardware, content, technology delivery systems and more; a conference program with more than 300 sessions; and more than 152,000 attendees from more than 150 countries.
    They are the ultimate job creators who start with ingenious ideas, take risks and create value for the American consumer. Our nation has been built by encouraging entrepreneurship and innovation. Especially in our current economic downturn, it is crucial that we pursue national policies that promote innovation to ensure that there will be enough prosperity to carry on into the next generation.

    More about CES conference in 2105 hère; http://www.cesweb.org/

    But we also need significant tax incentives to get these companies the competitive advantage over their foreign competitors.

    Here is a remarkable view by Jeff Hatfield to consider:

    TITLED: Propel Small Business Innovation through Tax Reform

    quote from article:

    “As CEO of an emerging clinical-stage biotech company, I lose over $10 million each year. Over the lifetime of my company, I have lost over $100 million. But constantly losing money in an effort to advance discoveries should not overshadow the real lifeblood of biotechnology, which is the reward of seeing patients treated, lives saved, and families healed……….Some of the biggest challenges companies like mine face include high research and production costs, coupled with the difficulty of raising capital, particularly for products in the early stages of development………Tax proposals aimed at helping American small businesses gain access to private investment to incentivize pre-revenue innovation will positively impact the economy, create jobs and stimulate investment.

    More here

    http://www.biotech-now.org/business-and-investments/2013/08/propel-small-business-innovation-through-tax-reform#

  3. The thing that worries me about The American Jobs Act is that once again we seem to be using the Non Payment of Social Security taxes as a way to stimulate the Economy .
    This plays into the Republican Mantra about Social Security helping to cause the deficit .

    • Interesting….could you elaborate on “the Non Payment of Social Security taxes as a way to stimulate the Economy .” ??

  4. Could take 500,000. off welfare just give them a living wage. CEO’S want $1,000,000.00 So $10.00 for workers is not much!!!

    • Well….let us take it farther…

      How about a guaranteed annual income, throw out all existing entitlement programs except ACA, social securiy medicare/caid and pay $40, 000 a year in wages tied to a job?

      We would need only 140 billion. Easily obtainable by transferring that out of existing trillion dollar social programs, and creating a single source for all social programs integrated into a guarrnteed wage that has a job attached to it. Also—take 10% out of all “defense” related spending that is now at 718 BILLION!….Give us 71 Billion to put into a guaranteed job…

      Puts America back to work. Repairing America’s infrastructure and decaying cities…

      Elimates poverty once and for all…

      The poor are not poor. They pay taxes. have housing and the middle class is resurgent again.

      • We could cut the 24 Billion that oil company’s get in tax breaks each year.h
        Boeing could pay more than 1.4% in taxes
        That would be a start.

  5. So many wonderful Idea’s. truly if $10.10 an hour will raise 900k people out of poverty and in turn take them off government programs, well we should make it $20.20 an hour and do twice as much good.. Confusing though when I see we should extend unemployment benefits for 200k unemployed, and at the same time introduce 11 Million undocumented workers in to legitimate employment to compete for the same jobs that apparently are not there. and while we are at it, give every one free health care too.. while we are at it.. can we start a program to relocate all these conservatives to new countries to be rid of the opposition? sign me up

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