Cut Social Security? Are they crazy in Washington, DC?

The National Commission on Fiscal Responsibility and Reform is sounding the alarm around deficit spending. While many economists are calling for more spending to energize the economy, this commission is using exaggerated rhetoric to heighten deficit fear. They are talking about cuts to Social Security, Medicare and middle class benefits like the home mortgage deduction.

The time is now to build opposition to these recommendations and urge Congress and the administration to cut programs that will not make the economy worse for most Americans. When I testified before the commission I urged:

* Cuts in military spending as this makes up half of U.S. discretionary spending and is filled with waste and bloat.

* Cuts to corporate welfare, especially to the oil and gas industry which is scheduled to received billions in tax breaks despite massive profits.

* Taxes on the purchase of stocks, bonds and derivatives where even a tiny micro tax could raise tens of billions annually.

* Taxes on the estates of the wealthiest 2.5% of Americans which could raise more than $10 billion annually.

Read my full testimony http://www.prosperityagenda.us/node/4344

These are just a few of the areas where cuts in spending and taxes on wealth could balance the budget and avoid the need to cut Social Security and Medicare or tax the middle class. Social Security is in good financial shape for upcoming decades and merely raising the cap on Social Security taxes will make the program secure for the 21st Century. Medicare’s challenge is not the Medicare program but the cost of health care. Cuts to Medicare will make health problems and the cost of health care more expensive. The real solution for health care is ending the waste of the private insurance industry by making improved Medicare available to all Americans.

Please write to President Obama and your representatives in Congress now!

In addition, please share this message with everyone you know.

The commission is preparing its report for after the election. But, with the mid-term elections coming this is the time when voters have the most power. We need to ask elected officials to protect Social Security and Medicare by cutting spending for weapons and war, and tax dollars to corporations first. We also need to urge them to consider taxes on wealth before considering taxes on workers.

We need to build this movement now. We cannot wait until after the election.

Please take action today.

And, please support our ongoing efforts by making a donation today.

Thank you for your support.

Presenting The Wall Of Worry: The 50 Ugliest Facts About The US eCONomy

By Tyler Durden
Zero Hedge

As we close on another week replete with ugly economic data and the usual bizarro counterintuitive market, here is a summary of the 50 most underreported facts about the state of the US economy, courtesy of the Coto report [1]. After reading these it almost makes sense that the market has become completely desensitized to the sad reality now pervasive in this country. Readers are encouraged to add their own observations to this list. Surely if the list is doubled, the market will go up to 72,000 instead of just 36,000.

#50) In 2010 the U.S. government is projected to issue almost as much new debt as the rest of the governments of the world combined [2].

#49) It is being projected that the U.S. government will have a budget deficit of approximately 1.6 trillion dollars [3] in 2010.

#48) If you went out and spent one dollar every single second, it would take you more than 31,000 years [4] to spend a trillion dollars.

#47) In fact, if you spent one million dollars every single day since the birth of Christ, you still would not have spent one trillion dollars [3] by now.

#46) Total U.S. government debt is now up to 90 percent [5] of gross domestic product.

#45) Total credit market debt in the United States, including government, corporate and personal debt, has reached 360 percent of GDP [6].

#44) U.S. corporate income tax receipts were down 55% [2] (to $138 billion) for the year ending September 30th, 2009.

#43) There are now 8 counties in the state of California that have unemployment rates of over 20 percent [7].

#42) In the area around Sacramento, California there is one closed business for every six that are still open [8].

#41) In February, there were 5.5 unemployed Americans for every job opening [9].

#40) According to a Pew Research Center study [10], approximately 37% of all Americans between the ages of 18 and 29 have either been unemployed or underemployed at some point during the recession.

#39) More than 40% [11] of those employed in the United States are now working in low-wage service jobs.

#38) According to one new survey, 24% of American workers say that they have postponed their planned retirement age [12] in the past year.

#37) Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008 [13]. Not only that, more Americans filed for bankruptcy in March 2010 [14] than during any month since U.S. bankruptcy law was tightened in October 2005.

#36) Mortgage purchase applications in the United States are down nearly 40 percent [15] from a month ago to their lowest level since April of 1997.

#35) RealtyTrac has announced that foreclosure filings in the U.S. established an all time record for the second consecutive year [16] in 2009.

#34) According to RealtyTrac, foreclosure filings were reported on 367,056 properties in March 2010 [17], an increase of nearly 19 percent from February, an increase of nearly 8 percent from March 2009 and the highest monthly total since RealtyTrac began issuing its report in January 2005.

#33) In Pinellas and Pasco counties, which include St. Petersburg, Florida and the suburbs to the north, there are 34,000 open foreclosure cases [18]. Ten years ago, there were only about 4,000.

#32) In California’s Central Valley, 1 out of every 16 homes is in some phase of foreclosure [19].

#31) The Mortgage Bankers Association recently announced that more than 10 percent of all U.S. homeowners with a mortgage had missed at least one payment during the January to March time period. That was a record high [20] and up from 9.1 percent a year ago.

#30) U.S. banks repossessed nearly 258,000 homes nationwide [21] in the first quarter of 2010, a 35 percent jump from the first quarter of 2009.

#29) For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States [22] than all individual Americans put together.

#28) More than 24% of all homes with mortgages in the United States were underwater as of the end of 2009 [23].

#27) U.S. commercial property values are down approximately 40 percent [24] since 2007 and currently 18 percent of all office space in the United States is sitting vacant.

#26) Defaults on apartment building mortgages held by U.S. banks climbed to a record 4.6 percent [25] in the first quarter of 2010. That was almost twice the level of a year earlier.

#25) In 2009, U.S. banks posted their sharpest decline in private lending since 1942 [26].

#24) New York state has delayed paying bills totalling $2.5 billion [27] as a short-term way of staying solvent but officials are warning that its cash crunch could soon get even worse.

#23) To make up for a projected 2010 budget shortfall of $280 million, Detroit issued $250 million of 20-year municipal notes in March. The bond issuance followed on the heels of a warning from Detroit officials that if its financial state didn’t improve, it could be forced to declare bankruptcy [28].

#22) The National League of Cities says that municipal governments will probably come up between $56 billion and $83 billion short [28] between now and 2012.

#21) Half a dozen cash-poor U.S. states have announced that they are delaying their tax refund checks [29].

#20) Two university professors recently calculated that the combined unfunded pension liability for all 50 U.S. states is 3.2 trillion dollars [30].

#19) According to EconomicPolicyJournal.com, 32 U.S. states have already run out of funds to make unemployment benefit payments [31] and so the federal government has been supplying these states with funds so that they can make their payments to the unemployed.

#18) This most recession has erased 8 million private sector jobs [32] in the United States.

#17) Paychecks from private business shrank to their smallest share of personal income in U.S. history [32] during the first quarter of 2010.

#16) U.S. government-provided benefits (including Social Security, unemployment insurance, food stamps and other programs) rose to a record high [32] during the first three months of 2010.

#15) 39.68 million Americans [33] are now on food stamps, which represents a new all-time record. But things look like they are going to get even worse. The U.S. Department of Agriculture is forecasting that enrollment in the food stamp program will exceed 43 million Americans in 2011.

#14) Phoenix, Arizona features an astounding annual car theft rate of 57,000 vehicles [34] and has become the new “Car Theft Capital of the World”.

#13) U.S. law enforcement authorities claim that there are now over 1 million members of criminal gangs inside the country. These 1 million gang members are responsible for up to 80% of the crimes committed [35] in the United States each year.

#12) The U.S. health care system was already facing a shortage of approximately 150,000 doctors in the next decade or so, but thanks to the health care “reform” bill passed by Congress, that number could swell by several hundred thousand more [36].

#11) According to an analysis by the Congressional Joint Committee on Taxation [37] the health care “reform” bill will generate $409.2 billion in additional taxes on the American people by 2019.

#10) The Dow Jones Industrial Average just experienced the worst May [38] it has seen since 1940.

#9) In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one [39].

#8) Approximately 40% of all retail spending [11] currently comes from the 20% of American households that have the highest incomes.

#7) According to economists Thomas Piketty and Emmanuel Saez, two-thirds of income increases in the U.S. between 2002 and 2007 went to the wealthiest 1% of all Americans [40].

#6) The bottom 40 percent of income earners in the United States now collectively own less than 1 percent [41] of the nation’s wealth.

#5) If you only make the minimum payment each and every time, a $6,000 credit card bill can end up costing you over $30,000 [22] (depending on the interest rate).

#4) According to a new report based on U.S. Census Bureau data, only 26 percent of American teens between the ages of 16 and 19 had jobs in late 2009 which represents a record low [42] since statistics began to be kept back in 1948.

#3) According to a National Foundation for Credit Counseling survey, only 58% of those in “Generation Y” pay their monthly bills on time [10].

#2) During the first quarter of 2010, the total number of loans that are at least three months past due in the United States increased for the 16th consecutive quarter [43].

#1) According to the Tax Foundation’s Microsimulation Model [44], to erase the 2010 U.S. budget deficit, the U.S. Congress would have to multiply each tax rate by 2.4. Thus, the 10 percent rate would be 24 percent, the 15 percent rate would be 36 percent, and the 35 percent rate would have to be 85 percent.

Source: Zero Hedge

The Missing Words at the G-20 – or an absurd plan for the global economic crisis

Does the G-20 Show the Shape of things to Come — austerity and extreme police actions?

By Paul Jay
Real News Network

With all the public attention during G20 on the 1000 arrests and such, something critical was overlooked. That’s the paradox the assembled heads of governments created for ending the global economic crisis.

The G20 leaders recognize that “demand” needs to grow. That means people must have the means to buy stuff. Do a search in the G20 Toronto Summit Declaration and fourteen times you’ll find a reference to boosting or increasing “demand”.

Yet they want to halve their deficits by 2013. How are they going to cut government spending and increase demand at the same time?

They acknowledge that some stimulus spending may still be necessary to stop the world from sinking deeper into recession. But by 2013 they want government deficits to plummet. How will they pull it off? It’s already in the works; cut social-safety-net programs with a focus on social security and public pensions.

So the G20 wants to increase “private demand” and cut the deficit. Ok, there must be ways to do this without simply adding more government stimulus money.

Now do a search in the Declaration for the word “wages”. You’ll find it once. The document says “Reforms could support the broadly-shared expansion of demand if wages grow in line with productivity.”

Wow! An admission that over the last four decades productivity has skyrocketed while wages have remained stagnant? A recognition that the greatest transfer of wealth from working people to the rich in modern history might have led to a lack of real demand and is a root cause of the crisis?

Are we about to see a G20 agreement on promoting anti-strike breaking laws, or eliminating legislation that makes it difficult to impossible to organize unions in many places around the world, including the US and Canada?

Sorry. That one sentence is all there is. Not one recommendation or agreement on how wages will rise in line with increases in productivity. One wonders why they bothered to put the sentence in the document.

Let’s backtrack. If productivity is up, why can’t we afford social programs now that we could in the past? Higher productivity means more wealth, not less, right? Let’s just say the top five percent of income earners in the world have never had it so good.

So if the economic pie is bigger, there must be ways to lower deficits without cutting social spending, right?

Now do a search in the G20 Declaration for the word taxes. You will find zero. Not a single reference to taxing the riches the very few accumulated over the last decades of growth.

That says it all. If you don’t like it, we always have a nice detention cell ready for you.

Paul Jay is the CEO and Senior Editor of The Real News Network. He is an award-winning filmmaker, founder of Hot Docs! International Film Festival and was for ten years the Executive Producer of the CBC Newsworld show counterSpin.

Click here to see video

Source: Real News Network

Build your advocacy skills!

Are you still looking for a great summer activity? Here is one that will be fun and build your advocacy skills.

Our close colleague, the Backbone Campaign, is organizing a “Localize This! Action Camp” which will teach campaign strategy and creative, non-violent tactics and direct action. All sorts of useful skills from puppet making to rappelling and blockades will be taught. The event is being held in Washington State from August 8 to 14 with the main workshops from the 9th to the 13th. The camp is inexpensive, indeed, no one will be turned away and they are suggesting a $25 donation per day or $100-300 sliding scale for the week. There will be on-site camping and Backbone Campaign will be providing food.

Get more information and register at http://localizethis.org or http://backbonecampaign.org