White House repsonse to disastrous jobs report

[Enrique]

at least they responded quickly, if lamely.

http://blogs.abcnews.com/politicalpunch/2011/07/goolsbee-unemployment-rate-remains-unacceptably-high.html

(...)

With the August 2 deadline to raise the nation’s $14.3 trillion debt ceiling fast approaching, Goolsbee says the latest figures highlight “the need for a balanced approach to deficit reduction that instills confidence and allows us to live within our means without shortchanging future growth.”

“Today’s report underscores the need for bipartisan action to help the private sector and the economy grow – such as measures to extend the payroll tax cut, pass the pending free trade agreements, and create an infrastructure bank to help put Americans back to work,” he writes.

[woolldog]

1. I saw Goolsbee on CNBC

and I actually thought his response was pretty good.

[Enrique]

3. it's good that it is fast

it wasn't so fast last time, iirc.

But what i read hear is inadequate. Maybe he said more on TV.

[JayhawkSD]

2. Well, I'm glad we didn't elect a Republican president

Because then we'd have a White House whose answer to everything was tax cuts.

Oh, wait... “Today’s report underscores the need for bipartisan action to help the private sector and the economy grow – such as measures to extend the payroll tax cut..."

[Doctor Hurt]

9. A payroll tax cut is a good idea

it is stimulative, much more so than other tax cuts, and might help get us out of this patch.

[Fearless]

11. It defunds Social Security. It is a horrible idea.

[Doctor Hurt]

12. not significantly.

a short term cut won't put a significant dent in SS.

[Fearless]

13. It makes a bad situation worse... what we could do is relax the payroll tax while...

Making everyone pay into it equally... (taxing income over $150,000). That would not only work but probably put it back in the black as a program.

[Doctor Hurt]

14. I agree.

dunno if we'd get that passed with the current House. Worth advocating for, though.

[Fearless]

19. Truth.

[Yupster]

26. Could we make everyone pay into it?

I've never understood why some professions are excempt from paying into social security.

The answer I always get is something like, they have been excempt for a long time, or they have their own systems instead.

How about making the universal system universal.

That would help a lot.

[bornskeptic]

15. No it doesn't. Anybody who tells you that should never be believed on anything.

The payroll tax cut has no effect whatsoever on the funding of Social Security. The end effect is exactly the same as if it were a refundable income tax credit equal to 2% of earned income up to $106,000. The reason for branding it as a payroll tax cut is simply that it gets the money to low income workers who, have little or no withholding, immediately. The income tax credit they would have to wait for until the next year. Some people here like to trot out the supposed Republican talking point that somehow the SS TRust Fund would be tainted in the future because some of the money seems to have come from the general fund. This would be a pathetic talking point anyway, but it's especially true this year because every dollar destined for SS this year, whether from payroll tax or the general fund, will be paid out in benefits. That will also be true in the forseeable future, so not a singl dime from the general fund will be in the SS Trust Fund.

[Fearless]

18. If you stop money from pouring into SS then you have less in SS.

[Igel]

21. True.

But irrelevant.

The current FICA reduction is bought out by general fund revenues. Money's fungible. It doesn't matter if $X billion is brought in by the FICA tax or if the tax is lowered and $X billion is paid to the SS from general revenues.

The payroll tax cut is just a sleight of hand. No less money goes to SS because of it, nobody's stopped "money from pouring into SS."

[lunatica]

23. Did you join DU to trash Obama?

[blueclown]

4. How does deficit reduction create jobs?

How?

[Enrique]

6. it does the opposite, of course

as Goolsbee and everyone else knows.

Long term is a different story, but we're not talking about long term here.

[ladjf]

8. The deficit reductions are more likely to make the employment

situation worse. nt

[atreides1]

5. "...bipartisan action..."

Reminds me of the scene from 'The Princess Bride'.

"You keep using that word. I do not think it means what you think it means."

[Yupster]

27. Just watched that again last night

Andre the Giant's best movie role for sure.

[OHdem10]

7. With advice like this, ughhhhhhh. FREE TRADE has created

STRUCTURAL DAMAGE to this economy. When they
are in a hole, they ask for a bigger shovel.


I am beginning to believe the WH has developed the
Republican Vision for our Country. Few Mega Rich
at the top , no middle class and masses of working
poor and abject poor.

Until we tackle the Structural Damage in this
economy things will deteriorate. It is better
that than look to history and realize FDR was
not all wrong. The DLC Third Way Republican
Lite do not have all the answers. If they did
we would not be facing this Jobs report today.

[Fearless]

10. Extended payroll tax kills Social Security... free trade agreements kill jobs...

We don't have the votes for a large spending plan for infrastructure... Bipartisan action is the WH definition of giving Republicans everything they want... privatizing SS... cutting Medicare and Medicaid... and fucking the middle class because we need to "live within our means"... The middle and working classes haven't HAD means in five years at least.

You want to give tax cuts? You want to cut SS/Medicare/Medicaid? Find yourself some Republican voters and don't let the door knock you in the ass on the way out.

[vroomvroom]

16. Guess it is Safe to Say Obama will be even more for Republican Ideas

I still dont get that logic but any time something bad is in the news and republicans spin it (how does deficit reduction improve jobs?) Obama virtually always goes along with it. Expect even less of a push of tax on the wealthy....oh yea its not tax on the wealthy. We are talking about letting the current tax cuts expire in exchange for gutting SS. Horrible deal making.

[Name removed]

17. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Maven]

20. OMG

Deficit reduction...

Bipartisan action...

Payroll tax cut...

Free trade agreements... (!!!)

This country is so royally fucked. This is the kind of self-centered tunnel vision that only a Republican administration could manage. This is Reagan and Hoover combined.

[high density]

22. As yes, more free trade

That will help our jobs.

[jimmyflint]

24. +1

Free trade = we trade away our jobs for free.

[Palmer Eldritch]

25. I don't think you know what a disaster is.

Positive job growth, however small, is never a disaster.

[Enrique]

28. two years into the recovery, this level of job growth is disastrous n/t