US Economy // Current

Study: Half of U.S. Children Will Get Food Stamps

Nearly half of all U.S. children and 90 percent of African-American kids will be on... more

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Warren Buffett Buys Railroad for $34 Billion in Support of US Economy

Full Story - http://www.msnbc.msn.com/id/33599744/ns/business-us_business NEW YORK... more

createfreely
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10 days ago
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Protesters Picket Goldman Sachs, Wells Fargo

Hundreds of union members and organizers hit the streets of downtown Chicago this past... more

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14 days ago
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The tax breaks that ate America

Oct. 26, 2009 | Here's the latest bold new idea for reconciling the costs of national defense with the need to avoid adding to federal deficits or raising taxes. A bipartisan coalition of "New Democrats" and moderate Republicans has proposed buying weapons for the U.S. military through the IRS rather than the Pentagon. Here's how it would work. Instead of being paid to deliver planes, missiles and tanks, defense contractors would receive "weapon supply tax credits" (WSTC). The defense contractors would be able to reduce the taxes they owed the federal government by the prices of the weapons they delivered. Because the tax credit would be refundable, if the prices exceeded a firm's annual tax liability, the IRS would send a check to the firm in the amount of the difference. In this way, the federal government could finance a massive military buildup -- and because tax credits aren't counted as part of the federal budget, for official purposes the cost of the buildup would be zero!

I had you going there for a minute, didn't I? The "weapons supply tax credit" is a joke. It was proposed some years ago by the late David Bradford, a Princeton economist who worked in the Ford and George H.W. Bush administrations. Bradford's purpose was to ridicule the growing reliance of Congresses and presidents on tax credits and other so-called tax expenditures as an alternative to ordinary spending programs funded by ordinary taxes.

The weapons supply tax credit is no crazier than the major tax expenditures that shape -- no, make that disfigure -- the political economy of early 21st century America. Instead of raising taxes to pay for universal healthcare, as many other nations do, the federal government grants a $250 billion a year tax break to employers to give them an incentive to buy healthcare for their employees. Hey, that approach really worked out well, didn't it?

And then there's America's biggest antipoverty program, the Earned Income Tax Credit (EITC). By means of the EITC, the federal government "tops up" the wages of full-time workers who are trapped in poverty. Needless to say, this is also a massive subsidy to employers who pay poverty wages to their workers, and to consumers who buy goods and services produced by poverty-wage workers. You'd think the more straightforward approach would be to ensure that anybody who works 40 hours a week doesn't need to rely on welfare, with entry-level public employment mopping up most remaining unemployment. You'd think.Oct. 26, 2009 | Here's the latest bold new idea for reconciling the costs of national... more

bansheewail
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17 days ago
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How did Americans end up with a system in which employers pay for our health insurance?

Accidents Of History Created U.S. Health System

If you want to understand how to fix today's health insurance system, you'd be smart to look first at how it was born. How did Americans end up with a system in which employers pay for our health insurance? After all, they don't pay for our groceries or our gas.

It turns out there never was any central logic at work. The evolution of the American health care system began in the 1920s, when choices boiled down to which crazy cure you preferred.

Dr. John Brinkley, for instance, was a huge hit in American radio with his health advice shows. For whatever problem folks had, Brinkley had one fabulous solution: transplant a goat gland into your body. He pitched it as being perfect for everything from dementia to impotence to flatulence. But if, somehow, a goat gland didn't cure your ills, you could always use Bonnore's Electro Magnetic Bathing Fluid or Clark Stanley's Snake Oil Liniment.

Before the birth of modern medicine, hospitals were poorhouses where the indigent went to die. Then came the advent of effective medicines, especially antibiotics, along with a revolution in medical schools.

Suddenly, says economic historian Melissa Thomasson, "hospitals are marketing themselves as places to have babies." The professor at the Miami University in Ohio says that in the early part of the 20th century, hospitals were able to focus on happy outcomes.

Health care became much more effective, and much more expensive. Clean hospitals, educated doctors and real pharmacological research cost money. People proved willing to pay for care when they were really sick, but it wasn't yet common to go for checkups or survivable illnesses.

By the late 1920s, hospitals noticed most of their beds were going empty every night. They wanted to get people who weren't deathly ill to start coming in.

"The war economy is an entirely different ballgame," Thomasson says. The government rationed goods even as factories ramped up production and needed to attract workers. Factory owners needed a way to lure employees. She explains that the owners turned to fringe benefits, offering more and more generous health plans.

The next big step in the evolution of health care was also an accident. In 1943, the Internal Revenue Service ruled that employer-based health care should be tax free. A second law, in 1954, made the tax advantages even more attractive.

Thomasson cites the huge impact of those measures on plan participation. "You start from 9 percent of the population in 1940 to 63 percent in 1953," she says. "Everybody starts getting in on it. It just grows by gangbusters. By the 1960s, 70 percent [of the population] is covered by some kind of private, voluntary health insurance plan."

Thus employer-based insurance, which started with Blue Cross selling coverage to Texas teachers and spread because of government price controls and tax breaks, became our system. By the mid-1960s, Thomasson says, Americans started to see that system — in which people with good jobs get health care through work and almost everyone else looks to government — as if it were the natural order of things.

But to Thomasson and other economic historians, there's nothing natural or inevitable about it. Instead, they see it as the profound result of historical accidents.Accidents Of History Created U.S. Health System If you want to understand how to... more

atomiclegion
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21 days ago
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Wall Street 40% Bonus Rise

Oct. 20 (Bloomberg) -- A 40 percent jump in Wall Street bonuses this year may bring... more

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24 days ago
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One in six Americans in poverty, new study finds

The level of poverty in America is even worse than first believed. A revised... more

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24 days ago
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Wall Street On Track To Award Record Pay

Major U.S. banks and securities firms are on pace to pay their employees about $140... more

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30 days ago
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Saudis want to charge US for reducing oil usage

If you thought the executives at Goldman Sachs were the kings of backroom finance,... more

bansheewail
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30 days ago
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US facing massive economic ‘power shift’ with dollar’s downward spiral

The dollar's position as the world's leading reserve currency faces increased pressure... more

bansheewail
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1 month ago
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Simon Johnson and US Rep. Marcy Kaptur and review of the financial crisis.

October 9, 2009 Just over a year after economic calamity brought promises of reform... more

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1 month ago
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As Job Loss Rises, Obama Aides Act to Fix Safety Net

WASHINGTON — With unemployment expected to rise well into next year even as the... more

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1 month ago
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The Recession and its affect on Religion

NEW YORK – Organized religion was already in trouble before the fall of 2008.... more

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1 month ago
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Dear America: Letter From a Muslim-American

I write to you, America, as a Muslim-American who is frustrated at seeing both sides of my identity spreading myths about each other. In part one of this two part article, I address America from a Muslim perspective. In part two, which will follow in the coming weeks, I shall write to the Muslim community, from an American perspective.

Dear America,

Our world today is assaulted with myriad headlines describing rising extremism and terrorism, and political instability in Afghanistan, Pakistan, and the Middle East. Despite the plethora of bad news, most recently we have seen a day of hope marked by the end of Ramadan, where Muslims from all nations, social classes, and sects openly united in the spirit of humility, brotherhood, thankfulness, and peace.

As human beings, you and me have a tendency to let the negative marginalize the good and the true. But in this Ramadan the unity and the message of peace and humility that nearly a billion Muslims have exhibited should not go unnoticed, nor should it be underestimated.

America, even though you are part of us (Muslims) and we are a part of you, you often fear and misunderstand the one thing that unites the billion of us around the world is peace, love, and spiritual strength. You fear our religion, Islam. I write the following to not accuse anyone or apologize on behalf of any group. In part one of this article, I speak to you America, as one Muslim who is part of the majority of Muslims standing against the Ahmedinijads, Bin Ladens, and Taliban and Al Qaeda. These men have stolen my voice... our voice. The actions of a violent minority have for too long trumped the selfless and righteous actions of the moderate majority who do good in the name of Islam.

Firstly, Muslims are not a violent people and Islam is not a violent religion. I fear you overlook the fact that the faith of Muslims has been monopolized by the corrupt despots of Muslim countries and Muslim extremists. And it is the extremists whose power is bolstered by a media that has paralyzed the voice of the Muslim majority, who in fact abhor violence and terrorism.

It can be confusing even to me because on one side we only see Muslim extremists on the TV preaching hate in the name of Islam and we barely hear the majority. As I will touch on in part two of this article, Muslims have even marginalized themselves. But America, Muslims are a community of over a billion people, most of whom live in poverty within developing countries governed by oppressive, abusive, authoritarian regimes. These very regimes remain bunkered against an alienated group of extremists who are taking to the gun instead of a potentially rigged ballot. It is our mothers and daughters and sons who are being killed on a daily basis by either violent extremists or botched missile attacks by NATO. We are against violence and terrorism America, be it from Muslim extremists or NATO bombs. We are against violence because it is we who are the primary target of most terrorist attacks today. And while we may disagree with your military actions and policies, we look up to the principles that make up America... I speak of the freedom to be critical of yourself as a society and government; the opportunities awarded by the most comprehensive education system in the world; and your effortless ability to adapt in an ever transforming world.

Read more at: http://www.huffingtonpost.com/mohsin-mohiud-din/dear-america-letter-from_b_299362.htmlI write to you, America, as a Muslim-American who is frustrated at seeing both sides... more

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1 month ago
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Feds (FDIC) may be asking Banks to bail them out

WASHINGTON — Tired of the government bailing out banks? Get ready for this:... more

bansheewail
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1 month ago
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Historic Godlstone Report Deals Blow in the war Israel is losing– the ‘Legitimacy War’

“So why did the Israeli government boycott the commission? The real answer is quite simple: they knew full well that the commission, any commission, would have to reach the conclusions it did reach.”
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The important points come near the end: that the rather conservative findings of the report (and its acceptance of Israel’s dubious right to self-defense–dubious because Gaza is effectively occupied), have acted as a "bombshell" in Israel because Goldstone calls for action, and because the report contributes to the fraying of Jewish support for Israel and to the "Legitimacy War" that Israel has been losing in the eyes of the world. "A historic contribution" to the Palestinian struggle for justice, Falk concludes.
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Uri Avnery (Israeli peace activist, and former Knesset member), “On the Goldstone Report” 19 Sept 2009

Richard Goldstone, former judge of South Aftica’s Constitutional Court, the first prosecutor at The Hague on behalf of the International Criminal Court for Former Yugolavia, and anti-apartheid campaigner reports that he was most reluctant to take on the job of chairing the UN fact-finding mission charged with investigating allegations of war crimes committed by Israel and Hamas during the three week Gaza War of last winter. Goldstone explains that his reluctance was due to the issue being “deeply charged and politically loaded,” and was overcome because he and his fellow commissioners were “professionals committed to an objective, fact-based investigation,” adding that “above all, I accepted because I believe deeply in the rule of law and the laws of war,” as well as the duty to protect civilians to the extent possible in combat zones. The four-person fact-finding mission was composed of widely respected and highly qualified individuals, including the distinguished international law scholar, Christine Chinkin, a professor at the London School of Economics. Undoubtedly adding complexity to Goldstone’s decision is the fact that he is Jewish, with deep emotional and family ties to Israel and Zionism, bonds solidified by his long association with several organizations active in Israel.

Despite the impeccable credentials of the commission members, and the worldwide reputation of Richard Goldstone as a person of integrity and political balance, Israel refused cooperation from the outset. It did not even allow the UN undertaking to enter Israel or the Palestinian Territories, forcing reliance on the Egyptian government to facilitate entry at Rafah to Gaza. As Uri Avnery observes, however much Israel may attack the commission report as one-sided and unfair, the only plausible explanation of its refusal to cooperate with fact-finding and taking the opportunity to tell its side of the story was that it had nothing to tell that could hope to overcome the overwhelming evidence of the Israeli failure to carry out its attacks on Gaza last winter in accordance with the international law of war. No credible international commission could reach any set of conclusions other than those reached by the Goldstone Report on the central allegations.

In substantive respects the Goldstone Report adds nothing new. Its main contribution is to confirm widely reported and analyzed Israeli military practices during the Gaza War. There had been several reliable reports already issued, condemning Israel’s tactics as violations of the laws of war and international humanitarian law, including by Amnesty International, Human Rights Watch, and a variety of respected Israeli human rights groups. Journalists and senior United Nations civil servants had reached similar conclusions. Perhaps, most damning of all the material available before the Goldstone Report was the publication of a document entitled “Breaking the Silence,” containing commentaries by thirty members of the Israel Defense Forces---continued below“So why did the Israeli government boycott the commission? The real answer is quite... more