Center for Economic and Policy Research
Co-director of the Center for Economic and Policy Research, an independent, left-of-center, economic research organization based in Washington, DC ; author of Taking Economics Seriously, The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Rich, Plunder and Blunder: The Rise and Fall of the Bubble Economy, The End of Loser Liberalism: Making Markets Progressive and False Profits: Recovering from the Bubble Economy
Can Bernie Sanders Break Up the Big Banks? Bernie Sanders has promised to break up the country’s biggest financial institutions during his first year in office. It’s one of the central tenets of his campaign, and last week he was asked about how he’d do that in an interview with the editorial board of the New York Daily News. He’s now being criticized for seeming vague and evasive. But is the criticism fair? As the California primary nears, we will periodically examine the promises candidates are making. Today: How would Sanders break up the big banks?
The Federal Reserve, the Economy and You Wall Street, the banks, business and organized labor are all waiting to see if Janet Yellen and the Federal Reserve will raise interest rates tomorrow. They're only talking about a quarter of one percent — but that's a lot when rates are close to zero, as they've been for the past nine years. Those who want to see an increase are worried about inflation. Those who want to keep things as they are say a hike would be bad for employment. We hear what's at stake for the prices you pay and the security of your job — not to mention business investment and profit.
Are Government Workers Facing a Broken Promise? Public workers may not be getting the retirement pay they've traditionally been guaranteed by contracts, laws and state constitutions. Last week, a federal bankruptcy ruling declared that Detroit's pension plans for city workers could be modified , just like any other debts owed by the city. That has other cities threatening to declare insolvency, in part to cut pension payments. But some Democrats, as well as Republicans, are already saying that state and local governments can't afford to make contributions any more. What's in store for firefighters, police officers, trash collectors and teachers who've accepted modest pay knowing their old age would be taken care of?
Obama Budget: New Consensus or Continued Gridlock? Partisanship has left the budget process in shambles since 2010, but this year the Republican Congress and Democrats in the Senate have both passed spending plans. Having refused to start the proceedings in February, as required by law, President Obama has waited to weigh in. Tomorrow, he's expected to take what Washington calls a "risk" by proposing social-program reductions that infuriate many Democrats. The White House calls that "conciliatory," and hopes that Republicans will agree. But they're likely to balk at the tax increases on which his cuts are conditioned. Social Security, Medicare and "the Sequester" are part of the package, with the deficit, tax reform and the debt limit looming on the horizon. We hear what to expect from the White House, with both parties already thinking about the mid-term elections next year.
Looking Over the edge of the Fiscal Cliff The "fiscal cliff" means all income-tax payers are in for an increase and most government programs are in for massive reductions by the first of next year. What if the re-elected President and the lame-duck Congress can't make a deal? Would gridlock necessarily lead to another recession? We look at the financial picture and ask which players have the most to gain or lose in the aftermath of last week's election.
The Continuing Disconnect between Wall Street and Main Street Although it's down a bit today, the Dow hit 13,000 this week for the first time since May, 2008. NASDAQ flirted with 3000. One US company, Apple, is now valued at over $500 billion, higher than the gross domestic product of Poland, Belgium, Sweden, Saudi Arabia or Taiwan. Yet manufacturing growth has slowed, construction spending has slipped, and consumer spending remains weak. Both housing construction and Americans' after-tax income actually fell in January. What accounts for the disparity? How important is it? What can be done about it? And how will all this play out in this year's elections?
Republicans Take Aim at Medicare Republican House Speaker John Boehner met President Obama at the White House today, but they failed to make a deal to avoid a government shutdown on Friday. Meanwhile, Republican Majority Leader Eric Cantor of Virginia blamed the stalemate on a "lack of [Democratic] leadership in the Senate." As the battle raged over this year's federal budget today, the chair of the House Budget Committee, Wisconsin Republican Paul Ryan, presented his much-awaited plan for cutting the deficit and restructuring Medicaid and Medicare. We hear the details and look at the political consequences.
Money, Medicare and Next Year's Election As the White House and Congress struggled to avoid a government shutdown based on this year's budget, chair of the House Budget Committee, Wisconsin Republican Paul Ryan, presented his much-awaited plan for next year. Republicans claim it would save almost $6 trillion in ten years by spending cuts, restructuring Medicaid and Medicare and providing a choice of private insurance plans. Critics say it would make the rich richer and require the old and the sick to shoulder rising healthcare costs on their own. Does anybody expect the package to become law, or is it designed to shape debate about the role of government in next year's presidential campaign?
Wisconsin and the Rights of Government Employees Wisconsin's public employee unions say they've agreed to Republican Governor Scott Walker's proposed increases in pension and healthcare contributions. But they're into the second week of protests over his demand that collective bargaining rights be limited.
Standoff Continues in Wisconsin In Madison, protesters packed the Capitol again today as Wisconsin's Governor refused to negotiate his controversial budget bill. Republican Scott Walker's plan is aimed at a $137 million shortfall. The state's public employee unions say they've agreed to Walker's proposed pay cuts and pension contributions, but are into the second week of protests over his demand that collective bargaining rights be limited. The minority Senate Democrats have left the state to prevent Republicans from enacting the Governor's proposal. President Obama's accused Walker of an "assault against unions," and minority Senate Democrats have left the state to prevent Republicans from changing the law. We get the latest's on a bitter dispute focused on government workers and the economy.
Can We Afford to Rescue Fannie Mae and Freddie Mac? Fannie Mae and Freddie Mac were established to promote the American dream of home-ownership, by subsidizing mortgages backed by the federal government. When the housing bubble burst two years ago their risky loans left taxpayers on the hook for nearly a half-trillion dollars. The New York Times reports that in the first three months of this year, they took over a foreclosed home every 90 seconds, and they now own more homes than there are in the city of Seattle
House Republicans Say No Deal to Obama Stimulus Plan Polls show that everybody wants to fix the economy, but grassroots partisans don’t agree about how to do it, and that’s reflected in Washington. President Obama went to Capitol Hill today but, even before he got there, House Republican leaders called for a “no” vote on his stimulus package , and the President’s much publicized courting of John McCain appears less than successful. The Arizona Senator called the plan “just the old spending practices of liberal Democrats.” Is the Obama plan the best way to create jobs or a grab-bag of special interest giveaways? Does it properly balance tax cuts and spending?
The Writers' Strike Despite the presence of a federal mediator, yesterday's last minute talks between television and film writers and the Alliance of Film and Television producers went nowhere. Today members of the Writers Guild of America began carrying picket signs in New York and Los Angeles. Should the rest of the nation care? We hear how new media are changing the world of entertainment and America's cultural economy.
Ex-FBI Director Comey tells his side of the story Today, former FBI Director James Comey came close to calling the President who fired him a liar. The White House denied the claim and called it insulting, but Republican Senators did not challenge Comey’s truthfulness. Many questions remain: did the President try to obstruct a federal investigation? Later, we’ll go behind the “velvet rope” for a look at 5-Star health care for the richest Americans.
Who's to blame for the opioid crisis? Some of the lawyers who took on Big Tobacco are now going after Big Pharma. It’s all about the deadly epidemic of opioid use. Are the drug companies to blame? What about the users? Later, on today’s Talking Point: making sense of Britain’s upset election.
The Trump agenda: where's the beef? President Trump says big things are happening. After celebrating a House bill on health care, he doesn’t yet have Senate agreement. With James Comey’s public testimony scheduled tomorrow, the President today tweeted his selection of a new FBI Director. Is the Chief Executive all style and no substance? Later, terror attacks in Iran and conflicting claims about who’s behind them.
Is the threat from Russia missing from the Russia meddling probe? There's much being made about the Trump administration's possible ties with Russia. But the bottom line is Russia's effort to influence American democracy. Do the President and his aides care enough to take action before voters go back to the polls?