No Senate? No problem, progressive group says.

[JoeOtterbein]

Politico

AOC-linked New Consensus says the incoming president can team up with the Fed and Treasury to boost the economy and save workers.

By HOLLY OTTERBEIN

11/18/2020 05:30 AM EST

A co-founder of the progressive group Justice Democrats and a former top aide to Rep. Alexandria Ocasio-Cortez of New York have a striking message for President-elect Joe Biden: Don’t worry about the Georgia Senate races.

They think it would be great for Democrats to win them and control the Senate, of course. But even if they don’t, they said in a memo obtained first by POLITICO, Biden can still accomplish almost all of his “Build Back Better” plan to overhaul the economy.

New Consensus, a left-wing think tank led by Ocasio-Cortez’s former chief of staff Saikat Chakrabarti, Justice Democrats’ co-founder Zack Exley, and organizer Demond Drummer, argues that Biden could team up with the Federal Reserve and Treasury Department to provide trillions of dollars of low-interest loans to build the “industries of tomorrow” and help small businesses suffering because of the Covid-19 pandemic.

The group’s memo, which it said it sent to the Biden transition team on Tuesday, acknowledges that bipartisan legislation might be appealing. But it insists it isn’t strictly necessary.

snip

more at link

[Loki Liesmith]

1. How does one get the Fed to to this?

They are ostensibly an independent organization.

[still_one]

2. Didn't you ever read jack and the beanstalk? Magic beans

[Blue_true]

74. There are elements of the plan that are not only forward looking,

they are actually eminently achievable and will accomplish the intended objectives, IMO.

[BannonsLiver]

30. That's the simple part

It’s “maaaaagic”

[NurseJackie]

22. Thank you. --- This whole thing is absurd.

I'm not surprised at all that Politico's lead whiner is promoting this crap.

[brooklynite]

33. So, a publication that focuses on political news shouldn't report political news?

An innovative business strategy, I'll agree.

[NurseJackie]

36. Lulz!

[Dem2]

42. Nah

It's fun to imagine if the ideas in the article annoy a person, but it's just not realistic to think people in Georgia read this article and say "whew, now I don't have to vote".

[treestar]

61. Nobody thinks it works like that

It just becomes part of the atmosphere and contributes to each voter's overall general feeling.

[still_one]

4. this is from the group that did so well in the primary

[empedocles]

14. This is the group that helped so much to lose House seats in November

[NurseJackie]

23. Nailed it!

[George II]

58. They did so badly in 2016 through 2019 that they took down their endorsements page.

But this year they endorsed nine candidates (other than sure-winner incumbents), three won.

[Amishman]

5. Loans aren't the answer, loans have to be paid back

Adding a debt burden to businesses whose balance sheets are already wrecked just postpones the inevitable.

It creates a debt trap not unlike how perpetually extended / deferred student loans are crippling the finances of many college grads.

Not to mention the risk to the US's credit rating and future federal reserve balance sheets when a significant portion of these high risk loans go bust. I really doubt the businesses that would need these would be in a position to be able to offer up suitable collateral.

We need actual grants to save impacted industries (restaurant, hospitality, entertainment especially)

[mopinko]

10. well,

they could be zero interest, and they could be forgivable, like some of the other pandemic relief has been.

[Alex4Martinez]

31. Yup, all kinds of industries get that treatment, fossil fuel, pharma, et al.

Thank you for pointing this out.

[Amishman]

32. forgivable would require legislation

as just wiping out that debt without some means of funding to offset would blow a huge hole in the balance sheet. This would have severe negative impacts on the country's credit rating and ability to borrow.

[mopinko]

34. sorta, but

we do it for the big guys allllllllll the time.
called bankruptcy. as someone who got into business by buying 3 bankrupt properties, it improves the economy on the back end.

[Amishman]

39. except that is banks taking the hit and they are structured to take losses like that occasionally

doing this through fed reserve / treasury would be a much larger part of their overall balance sheet, and they are not set up to take losses even close to what this would be.

[lagomorph777]

6. I don't know how achievable this is, but we need to keep thinking up workarounds.

Government is going to be held together with bubble gum and baling wire for quite some time, until we can make some headway into the heads of the 47% at the bottom of the barrel.

[Progressive dog]

7. The FED is not supposed to be political.

There is a law governing what responsibilities the FED has and puts limits on the power of the FED.
We've seen enough of these attempts to circumvent our laws in the last four years.

[mopinko]

9. well, right now they are propping up the stock market

by buying back stock of big companies, making the rich richer.
you telling me this admin had nothing to do w that strategy?

[Progressive dog]

11. What the FED is doing is trying to save the economy

and with it save our jobs and lots of investments made by ordinary people. According to Gallup polling, 55% of Americans own stock.

[mopinko]

12. yes, it is. but it could just as easily bail out main street.

[Progressive dog]

15. It will be tough to bail out main street

without bailing out big business. It would require action by the elected government, not the FED.

[mopinko]

13. and most of those stocks are held in 401k's. long haul.

but big biz execs are cashing in on the pumped up prices now.
that hurts us all.

[Progressive dog]

17. You are correct, most of those stocks are in retirement accounts

and they are providing income now for millions of retired Americans. If the value goes down, the income goes down too.

[mopinko]

21. most will recover under a new admin.

and big execs cashing in hurts dividends.
why are you sticking up for big business here?

[Blue_true]

75. The number one job of the FED is to produce a smooth economy.

The group’s plan strikes directly at that role.

[Progressive dog]

79. Actually, the FED responsibilities are

defined in law. There's a whole book here, but the idea is that the FED cannot create new purposes for existence. The elected government must do that.
govIhttps://www.federalreserve.gov/aboutthefed/pf.htm

1. Overview of the Federal Reserve System
Chapter 1. Overview of the Federal Reserve System

The Federal Reserve performs five key functions in the public interest to promote the health of the U.S. economy and the stability of the U.S. financial system.

3. Conducting Monetary Policy
Chapter 3. Conducting Monetary Policy

The Federal Open Market Committee sets U.S. monetary policy in accordance with its mandate from Congress: to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.

[Blue_true]

80. Function #1 is directly related to what the progressive group called for.

If SARS-COV-2 runs rampant, the economy gets blasted into non existence and the entire financial system collapses. Go back to early 2009, when the FED worked jointly with the Treasury to stabilize the economy and the financial system. There is recent president in support of what the progressive group is calling for now.

[Progressive dog]

81. It doesn't matter that it is related

Things that are illegal will remain illegal unless the law is changed and laws can only be changed by Constitutional means. There is no "recent president" (the FED doesn't have one) and anyway the word is precedent.

[Blue_true]

82. It wasn't illegal in 2009 and it wouldn't be illegal now.

The wording of the function provides leeway for the FED to do what the progressive group believes should be done.

[Progressive dog]

83. What was done in 2009

was not contested and the economy was saved. The wording does not provide leeway for the FED to disburse money in any way that they choose for any reason that they choose. The FED does not operate on someone's belief, it operates under the law.

[Blue_true]

84. So you say 2009, when the FED did EXACTLY what the progressive group wants

should be erased, well ok .


The FED set a precedent then that it can be argued in Court applies to an even more dire case now, not only is the US and world economies are nearing meltdown, the meltdown will also kill millions of people (a feature that was absent in 2009).

[Progressive dog]

85. The FED did not do what that group is calling for.

There is no way that either the house or Joe Biden when he is president or the FED would loan trillions of dollars without a law allowing it.

[Blue_true]

86. The FED has been doing exactly that, loaning trillions of dollars.

The difference is those loans were not done to help small businesses and average working people. The progressive group is saying change that practice, which is a legitimate demand.

You act as if the FED has not loaned out trillions in the last couple of years. It has, and if SARS-COV-2 damages the every day economy, as it is doing and the damage is worsening, then every cent of the trillions that the FED has loaned out is at risk. By doing what the progressive group is demanding, the FED would not be doing anything other that making sure that assets it has at risk get paid back, what bankers would not want that?

[Progressive dog]

87. The FED loans were to protect the economy

The FED does not and should not have authority to usurp the legislative functions. Lending to small businesses is available through the SBA and is limited because there is not infinite money available or at least not infinite stuff to be bought by the money. Since the FED is tasked with keeping inflation low, FED loans must have a reasonable expectation of repayment. In 2009, the government money, both from the FED and legislation was paid back.
The FED is not a local bank and is not able to make small loans in a timely fashion, so not only would the loans be illegal, they wouldn't be smart.
I just don't get why anyone thinks that it is a good idea to give limitless spending power to the FED and take it away from our elected officials.

[Blue_true]

88. I believe that we are reduced to arguing arcane technicalities.

What my point and the point of the progressive group appears to be is that the FED has broken precedent before ( in 2009), although your point that it didn’t do that exactly is a sound point.

There is a rumor that the new Treasury Secretary will be a man who is now a FED Governor (for the Atlanta FED). He has been a vocal proponent of aggressive intervention into the economy, along with the Governor of the Saint Louise FED, and the FED Chair, Powell. One thing that can be done that meets the requirement of a reasonable potential of repayment is for the FED to loan directly to the SBA, with the SBA being responsible for assuring loan quality.

Thanks for being cordial in a debate where the two of us clearly have a different perspective, too often such situations can go off the rails.

[genxlib]

8. The Senate is important

But can we stop pretending it is the magic bullet.

Even if we get both, we will not have the votes to overturn the 60 vote limit to the filibuster. Not to mention the ridiculous policy of how a single Sentator can hold things up. I know there is much scorn for Manchin but I doubt very seriously that he is the only one that would stand in the way of the filibuster reform.

If we get the Senate, it goes a long way towards setting the agenda and allows us to make appointments. But as far as getting anything approved, we will still be subject to Republican obstructionism.

In many ways it will be worse to win. We will nominally control Congress but still be stymied to anything done. The electorate is not paying close enough attention to actually figure out who is to blame so it will be blamed on us. It is a classic case of all the responsibility without all the control.

Aside from that, history has shown that the American electorate prefers a divided Government. Every time in the last 50 years that a Party gains control, the next election balances towards that equilibrium. At least if the Republicans hold the Senate, we can argue that they are the problem and campaign towards a better 2022

[AmericanCanuck]

16. Justice Democrats lack a fundamental understanding of the government

and how the fed operates.

The president has no control over the fed.

We need the senate - PERIOD.

[grantcart]

18. +1

[NurseJackie]

19. Their belief in this fantasy allows them to continue to smear and denigrate Biden and Democrats...

Justice Democrats lack a fundamental understanding of the government and how the fed operates.

You're correct. Their belief in this fantasy allows them to continue to smear and denigrate Biden and Democrats with their typical false accusations of being "weak" or "one-percenters" or "Coastal Elites" (etc etc.)

Absurd pie-in-the-sky schemes like this serve no good purpose. I live in the real world. I have realistic expectations. I know that also applies to Joe Biden. He's no fool. He wasn't born yesterday. He knows what he's doing.

[AmericanCanuck]

20. I just read the byline

[NurseJackie]

24. Politico's lead whiner. I knew it when I saw the title.

She's worthless. A total hack that gets overpaid at 10-cents per word.

[Sunsky]

46. I agree nt

[JI7]

67. No, I'm sure they understand but their goal isn't to really get anything done

[JoeOtterbein]

25. The best ideas always come from the left of our nation.

The GOP and centrist righties just give us jelly and whine always served with a big glass of extra-sweetened kool-aid to make it go down.

They need to stop complaining about our progressive, and smart ideas, and come up with some of their own. Instead of just criticizing ours.

[JoeOtterbein]

28. Thanks you.

You would think they had something important to preach. Instead they preach us to just shut-up. And then they try to say we "are not helping" over and over again. As if that is actually an idea!

[JoeOtterbein]

41. I'm and senior white guy who eats way too much animal protein.

Otherwise, I'm very much in agreement with you. Especially the atheist-in-foxholes part! Thanks again!

[JoeOtterbein]

47. Thanks for ranting!

I like what you write. Feel free to rant here anytime!

[AmericanCanuck]

48. Not every idea is practical or implementable

Like I have a great idea to live in an oceanfront mansion and drive a Lamborghini. Fantastic idea. However, not practical considering my bank balance of $317.22

[Spazito]

26. Oh yes, Politico again....

It would serve Politico's agenda to depress Democratic votes in the Senate runoff election in Georgia so this article is no surprise. It also seems they have a direct pipeline to groups who are all too often attempting to sow dissention and chaos in the Democratic party which is.....interesting.

[brooklynite]

35. "It would serve Politico's agenda to depress Democratic votes in the Senate runoff election"

This is embarassing...

Do you know how many actual voters read POLITICO (or THE HILL or ROLL CALL) stories?

Almost none.

POLITICO is a publication that publishes POLITICAL NEWS for POLITICAL PROFESSIONALS. The includes discussions of policy disputes and strategies MADE BY POLITICIANS AND POLITICAL ORGANIZATIONS. It has no "agenda" other than to report the political news that its SUBSCRIBERS (there's an actual printed version distributed in Washington, DC) want to know about.

[Spazito]

37. You may find it embarrassing, I do not...

Politico chooses it's slant when it chooses which stories to publish hence it's obvious bias. It has an agenda, it has always had an agenda, one that has become more obvious over time.

I assume you subscribe to it given your fierce defense. Well, each to their own.

[JoeOtterbein]

40. Thanks.

Many anti-Politico posters follow everything my daughter writes that I post. So, in the end, I'm fine with the resulting hits for DU and Holly. But I would love to hear less personal nonsense against her, and more reasoned discussion.

[LanternWaste]

50. Ten bucks says you fail to see the irony in your having said that.

"less personal nonsense..., and more reasoned discussion."

[JoeOtterbein]

73. The first shoe that fits, is free.

The second must be paid in cash on the barrel-head.

[AmericanCanuck]

49. It gets on news aggregator sites like Yahoo

and there, thousands of people read the click-bait articles and get the wrong idea.

Justice Democrats should work within the system - they do have a few congresscritters nowand the ability to introduce legislation. Instead, JD goes to the public and tries to divide, while giving an impression that all Democrats are like them. That hurts in moderate and conservative states.

[JoeOtterbein]

52. That is not a very...

...strong reason not to tell the truth.

[AmericanCanuck]

60. Politico is not truth -- it is fringe group propaganda against Democrats.

[JoeOtterbein]

65. Politico is a progressive "fringe group"?

Seriously?

[AmericanCanuck]

66. Politico is not progressive

Media Matters rated it as having a right wing bias.

Politico recruits people from the fringe to divide Democrats and that has been their modus operandii for a long time - ever since the GWB admin.

[JoeOtterbein]

68. But the article was reporting on good ideas from progressives....

...What is right-wing about that?

[AmericanCanuck]

69. The unicorn and unworkable ideas are used by JD's shills at politico

to divide the Democrats.

They need to get real reporters instead of shills.

This divisive pseudo-journalism should not be given any thought other that what it is -- Justice Democrats' propaganda that is mostly nonsense.

[JoeOtterbein]

71. Don't give up already!

We can do much without dooming good ideas under foot, before the GOP can even do it themselves!

[AmericanCanuck]

76. The so called good ideas are not called good ideas by everyone

Only a small subset of Democrats think they're good ... other Democrats have better, more practical and workable solutions to the same problem.

I just hope the extreme ideas don't cost us the GA senate seats. You know repukes will be carpet bombing the airwaves with memes to tie our moderate candidates with people like Cenk Uygur and his supporters in congress. Memes which have already cost us votes especially in Florida.

[JoeOtterbein]

77. The *rumpers will carpet bomb us Dems as socialists and commies regardless...

...of how good or bad our ideas are. They always do. So who cares?

[AmericanCanuck]

78. So are you okay with losing GA senate seats

Last edited Thu Nov 19, 2020, 01:24 AM - Edit history (1)

only for the pleasure of broadcasting the socialist dreams of a small minority seeking attention?

It is important to tone down the rhetoric. Winning is more important.

Also, JD and their allied congresspeople are welcome to introduce legislation that they want instead of TaraReadeing the whole Democratic party. We are a big tent and everyone's views must be accounted for and a compromise reached.

[treestar]

62. coming up with that idea is not strictly news

and it may be a bad idea.

[mcar]

59. Tiger Beat on the Potomac

[Spazito]

64. LOL! n/t

[AnyFunctioningAdult]

38. Oh yay

More executive orders and going around Congress. No way this could ever be used by Republicans in the future...

We need to STOP expanding executive power.

[roamer65]

44. If the Treasury floats it, the Federal Reserve can monetize it.

Just get ready for the inflation.

[mcar]

45. This is idiotic

[grobertj]

51. That article is total bunk. That's the problem with the far left of our party.

Totally unrealistic. Let's not let perfect be the enemy of good.

[scipan]

53. I don't know why some are so eager to shoot down

any progressive idea, without even looking into it.

Here's a summary and a link to the 7 page memo:

https://newconsensus.com/projects/building-back-better-without-the-senate

Read it then see if you have any constructive criticism.

[Doremus]

54. Politico

[Yavin4]

55. For everyone shooting down this idea, what's your plan?

If you are pinning your hopes on winning, think again. Chances are the Democrats will lose both GA senate races. And then what? Cry about Mitch McConnell for two years? Think that will fly with a public that's suffering? Think they're going to blame Mitch or Biden?

Fine. You don't like this plan. So, where's your plan?

[Doremus]

56. How about trying like hell to win first.

If we don't we'll have plenty of time to come up with ways to plow through the obstructionists. Ya think?

[Yavin4]

57. Fine. Try like hell. But you're not offering a plan only criticism.

At least the Progressives are offering a possible solution instead of crying about Mitch.

[treestar]

63. This sounds like a plan for afterward

Though we should try like hell to win them.

[JI7]

70. Sounds like these so called "Progressives" want us to lose the Senate races

[Blue_true]

72. Pretty decent idea. The FED need to stop crying about where the

economy is headed and actively help buttress it. Stop loaning trillions to prop up Wall Street and put that money to work on Main Street.