News Release

Jobs Report Shows Progress, But Austerity Continues to Impede the Recovery

Liz Rose — Fri, 03 Feb 2012 09:01:51 -0500

Washington DC – The January jobs report of 243,000 new jobs and unemployment down to 8.3 percent -- shows progress. Robert L. Borosage, co-director of the Campaign for America’s Future, made the following statement about the new jobs report and its indications for the U.S. economy:

“We’ve now had 10 quarters of economic growth and five quarters of jobs growth. The report shows growth across the private economy, notably in manufacturing and construction.

“But don’t break out the bubbly. Any celebration should stay sober. The U.S. economy is still slogging slowly against fierce headwinds. We are still 6 million jobs short of where we were when the Great Recession began. There are still nearly 24 million people in need of full-time work. There are still more than four people lining up for every available job.

“Federal Reserve Chair Ben Bernanke stated the simple reality: `We still have a long way to go before the labor market can be said to be operating normally. Particularly troubling is the unusually high level of long-term unemployment.’ Nearly one-third of the unemployed have been out of work for a year or more. These are the true casualties of Wall Street’s excesses.

“American companies are producing more now than they did before the collapse. But Americans aren’t sharing in the rewards. Profits margins are at record heights; CEO salaries have soared, but there is no recovery in jobs, and wages and benefits continue to fall behind.

“Austerity continues to impede the recovery. Government employment was flat last month, but state and local governments project more cuts. Austerity in Europe is driving the EU and the United Kingdom into recession. U.S. exports will suffer accordingly, even without a Greek default or a financial calamity. U.S. government spending will be constricted by the budget deals.”

What Americans Hope to Hear in the State of the Union: Jobs. Jobs. Jobs.

Liz Rose — Tue, 24 Jan 2012 14:31:58 -0500

Washington, DC – On the eve of President Barack Obama’s third State of the Union Address, Robert Borosage and Roger Hickey, the co-directors of the Campaign for America’s Future urge the President to put job creation in America as the top priority.

Americans want to know that the President remains laser focused on Jobs. Jobs. Jobs,” said Robert Borosage, “We want him to advocate and fight for specific actions that will increase American employment: We want to see an ambitious jobs program. We want to see an ambitious jobs training program.”

“To maintain a middle class in America and allow those of us who have worked hard our whole lives to retire with dignity, we want to see the President speak clearly in defense of Social Security, Medicare and Medicaid,” said Roger Hickey. To assure that generations of Americans to come are prepared for the workforce, Hickey also encourages the President to fight for increased funding for education at all levels from pre-K through college.

Hickey said, “The President should boldly come out tonight for taxing the one percenters more. Gov. Romney’s tax returns show that wealthy Americans in fact pay lower tax rates than their secretaries.” He noted that polls show that Americans are overwhelmingly for asking millionaires and billionaires to pay more in taxes.

“This is the time to move on dramatic cuts in Pentagon spending,” said Borosage. “The cold war is long over. The wars in the Iraq and Afghanistan are winding down. We need to trim the fat in the defense budget and stop throwing money at the Pentagon and defense contractors.”

“If the President fights for jobs and the middle class, Americans will be with him. If Congress does not support these common sense measures for job creation and for sustaining the American dream including a secure retirement, then Members of Congress will return to their districts to an angry electorate.”

Campaign for America’s Future Urges President: Stand Against a Sweetheart Deal With the Big Banks

Liz Rose — Mon, 23 Jan 2012 13:46:30 -0500

Washington, D.C. --- Robert Borosage, co-director of the Campaign for America’s Future, is urging the Obama administration to investigate the big banks on mortgage related fraud before endorsing a settlement with them. With reports circulating of a pending state attorneys general settlement with the big banks that would immunize them from prosecution and civil suit in exchange for $25 billion, largely for principal reduction for underwater homeowners, the Campaign For America’s Future has joined in a broad coalition to oppose any sweetheart deal.

Statement from Robert L. Borosage, co-director of the Campaign for America’s Future:

“Americans from across the political spectrum are angry that the Wall Street banks blew up the economy and got bailed out, while home owners and taxpayers were stuck with the bill.

“This is a fundamental question of justice and democracy. The law is respected only if it is enforced. Cutting a settlement with the banks before there is an investigation violates our basic sense of justice. No one who robbed a bank would be offered immunity, a modest fine and no admission of guilt – before there was an investigation into who stole the money and how much they took.

“And there is a fundamental question of whether the democracy can hold the wealthiest few accountable. Americans are increasingly cynical about politicians, believing that Wall Street can buy and sell Washington. This is destructive to our democracy. The President’s campaign will highlight his commitment to fair rules and a fair shot for every American. A sweetheart deal with the banks would be a glaring contradiction to that theme. Any deal, enforced over the objections of the most independent Attorneys General, like New York’s Eric Schneiderman, will fail that test.

“What the people want is clear: Investigation before immunity. Penalize the perpetrators, not their victims. Any settlement must have sufficient scope to deal with the scale of the problem. There is an estimated $700 billion of negative equity in underwater homes. While 1 million homeowners have been helped by efforts to save homeowners, 10.7 million homeowners are underwater and that does not count people who have already suffered foreclosure. The top six banks paid bonuses worth $140 billion last year alone, or $420 billion over the last three years. They hold assets of $9.5 trillion. The rumored settlement of $25 billion is barely a slap on the wrist.

“It is vital to this country that the banks are made accountable. It is vital that they do not see the law as simply a minor price of doing profitable business, a speed bump on the way to their bonuses.

“With Occupy Wall Street inspiring activists and with citizens across the country being asked to pay to clean up the mess the banks created in the economy, every state Attorney General and the Administration should understand that any deal will receive widespread public scrutiny. Any settlement must be able to satisfy the standards of justice and fairness. What is now on the table does not come close.

“I want to laud Sen. Sherrod Brown (D-Ohio) and Rep. Brad Miller (D-N.C.) for defending the most vulnerable consumers and for advocating for better solutions to the foreclosure crisis.”

Act now: Stand Against a Sweetheart Deal for the Banks!

Jobs Report Shows Action Needed to Spur Hiring

Liz Rose — Fri, 06 Jan 2012 09:44:00 -0500

Washington, DC – Official job numbers released today by the Labor Department show that while employment continues to grow, without stronger policies to spur economic growth and job-creation, it will be many years before the US economy comes anywhere near full employment.

Roger Hickey, co-director of the Campaign for America’s Future, said in a statement:

“Economists estimate that the US will have to create more than 350,000 jobs per month – for the next three years – to get the unemployment rate down to 6 percent. December’s figure of 200,000 jobs created means that the economy is barely growing at the rate needed to keep up with the growth of the labor force. The fact that the unemployment rate has declined to 8.5 percent has got to mean that many more people have become so discouraged that they stopped looking for work (and thus are not counted as part of the labor force).

“The U.S. needs 4 to 5 percent growth to replace the 5.2 million jobs lost since 2007 and to keep up with new people who need jobs. But most forecasters predict that our economy will be lucky to grow at 2 or 3 percent this year.

“Clearly, if we don’t want to stay stuck at high levels of unemployment – and the growing inequality that comes with stagnant growth -- our government needs to take stronger steps to create jobs. Instead, Republicans in the Congress are still threatening to remove stimulus from the economy by blocking extension of unemployment benefits and continuation of President Obama’s middle-class tax cuts. Today’s report will add public pressure on Republicans to renew those policies before the two-month temporary extension expires next month. But we have to do much more than continuing last year’s modest stimulus. Americans need to pressure their representatives to take advantage of record low interest rates to invest in public infrastructure, energy conservation and renewables, and education. These are investments our economy needs to make anyway – and if we make them now, we can create enough jobs to escape today’s way-too-modest levels of growth and move our country to full employment.”

Hickey noted that, while private sector jobs continue to grow, government employment, driven by state and local layoffs, declined by 12,000 in December. “If the Federal government had continued the original Obama policy of financial aid to the states to keep those public servants employed, private sector firms could have benefited from the paychecks and economic demand of those public workers, leading to more private investment and job growth. Instead, layoffs of local government workers hurt overall growth.”

In summary, Hickey said, “today’s jobs report shows that our economy continues to struggle to create jobs. After more than two years of official `recovery,’ we are still not growing fast enough to make significant dents in the unemployment rate (and much of this month’s decline comes from discouraged workers giving up on their job search).

“The good news is that job creation is positive, but as Europe imposes job killing austerity and the world economy teeters on the edge of a new recession, Americans cannot allow conservative politicians to cripple the economy by slashing public spending, and we will be pushing Republicans to renew unemployment insurance and middle class tax cuts. However, Americans -- who all the polls show want to get beyond today’s status quo – will also be pressing politicians of both parties to put forward plans for investment and economic growth that can revive the American Dream of full employment and economic mobility. “

Progressives Praise President’s Appointment of Richard Cordray to Head the CFPB and Urge Recess Appointments to the NLRB

Liz Rose — Wed, 04 Jan 2012 11:08:10 -0500

Washington, DC – The Campaign for America’s Future supports President Obama’s decision to appoint Richard Cordray to head the Consumer Financial Protection Bureau, and encourages the president to quickly appoint members of the National Labor Relations Board.

Statement of Roger Hickey, co-director of the Campaign for America’s Future:

“We are very pleased that President Obama has used his Constitutional powers to appoint Richard Cordray to head the Consumer Finance Protection Bureau (CFPB). The Bureau needs to be up and running at full steam to protect consumers. Now the CFPB can be a watch dog on both banks and nonbanks and can work with its full powers to protect consumers. Republican lawmakers have tried to obstruct the Cordray appointment and the president’s nominations to other essential government bodies like the National Labor Relations Board -- agencies established by law but whose function they have been trying to hobble by refusing to allow a vote.

“Now the President should move quickly to use his recess appointment powers to appoint Members of the National Labor Relations Board (NPRB). The NLRB’s work is vital to protecting workers in this country. In an economy where more and more is expected from workers, the NLRB plays a vital role in worker protection. Activists from all over the country will be urging the President to appoint members to the NLRB. Republicans and the business lobby have worked to hobble the NLRB, but the president must push back against the business lobby and stand up for workers.”

The Campaign for America’s Future is urging Americans to contact the president to encourage him to appoint members of the NLRB. A quorum of members of the NLRB must be in place in order for them to be able to conduct work on behalf of America’s workers.

Progressives at the Campaign for America's Future:

Liz Rose — Mon, 19 Dec 2011 13:44:07 -0500

Washington, DC – House Republicans have announced they will block the extension of payroll tax cuts and unemployment benefits that President Obama and Congressional leaders agreed to. Progressives at the Campaign for America’s Future are telling Americans this latest battle is proof that Congressional Republicans are sabotaging the economic recovery for political gain.

“There they go again. The country needs these measures to infuse cash into the economy and the Republicans torpedo them for political reasons,” said Roger Hickey, co-director of Campaign for America’s Future. “House Republicans claim they support extending payroll tax cuts and unemployment insurance, but every time Congress gets close, they add on onerous conditions or renege on previous deals. We call that sabotage.”

“Even if you passed the payroll tax cuts and unemployment insurance, the government would still be doing less to boost the economy than they did last year, which is folly with 23 million Americans unemployed,” said Robert Borosage, co-director of the Campaign for America’s Future. “The Republican House Majority has blocked every proposed bill that would actually create jobs. They have forced the US into austerity. It’s either pure blind stupidity or craven treachery designed for a political purpose.”

Borosage said, “If we don’t assume the Republicans are dim-witted, the only conclusion is that they are happy to go contribute to mass unemployment that they can blame the President for.”

Campaign for America’s Future’s co-directors are asking Americans to tell Republican Congressional leaders to stop playing politics with the economy and put the needs of middle class Americans first. Link to the petition to Republican leaders is here.

The Economy is Stuck in First Gear

Liz Rose — Fri, 02 Dec 2011 08:26:06 -0500

Washington, DC – Robert Borosage, co-director of the Campaign for America’s Future reacted to this morning’s news from the Bureau of Labor Statistics (BLS) that the unemployment rate fell to 8.6, which is the lowest it’s been since March. According to the BLS, the economy added 140,000 private sector jobs, slightly above expectations; but cuts in public sector jobs brought net job creation to 120,000

Statement by Robert Borosage, co-director of the Campaign for America’s Future:

“The November jobs report released today by the Bureau of Labor Statistics simply confirms what we know: the economy is growing slowly, and haltingly. New jobs are barely at the level of new workers coming into the workforce. Workers aren’t sharing in the rewards of growth, with stagnant incomes not keeping up with costs. Cuts in public employment – such as layoffs of teachers and janitors –remain a drag on the economy. Happily, the unemployment rate went down, but this is due more to workers giving up looking for jobs, than from workers finding jobs.

“This fragile growth now faces fierce headwinds, with austerity in Europe and Great Britain driving those economies into recession. The financial crisis in Europe will impact zombie banks in the United States.

“While it looks like that Congress finally may use small band aids to attempt to stop the economic bleeding like the payroll tax extension and extending unemployment benefits, they are not doing what is needed to push this economy back in to firing on all cylinders.”

“We need Congress and the Federal Reserve to act now to put people back to work. Use the opportunity posed by record low interest rates to rebuild our decrepit infrastructure. Provide young workers with jobs in urban corps and green corps and the non-profit sector. Provide aid to states and localities to avoid more devastating layoffs of teachers and cops.”

The Campaign for America's Future (CAF) is a center for ideas and action that works to build an enduring majority for progressive change. The Campaign advances a progressive economic agenda and a vision of the future that works for the many, not simply the few. The Campaign is leading the fight for America's priorities – for good jobs and a sustainable economy, and for strengthening the safety net.

Campaign for America’s Future Urges GOP Congressional Leaders to Stop Sabotaging the Economy

Liz Rose — Tue, 29 Nov 2011 10:56:25 -0500

Washington , DC -- As the U.S. Senate prepares to vote this week on an extension of payroll tax cuts that are set to expire at the end of the year, the Campaign for America’s Future is urging supporters to contact Republican Congressional leaders to demand that the payroll tax cuts are renewed and that unemployment insurance is extended. They charge that Republicans are threatening to block the few efforts on the table to improve the economy for the middle class and for working people.

Roger Hickey, co-director of the Campaign for America’s Future said, “Republicans have slashed public investment and blocked the President's American Jobs Act. With 14 million Americans officially unemployed and many millions more having given up finding jobs, you would think Republicans would support two measures they have backed in the past that would help middle class Americans. But will they?

“It’s time to demand they vote to extend unemployment benefits – one of the most effective ways to put money in the pockets of people who will certainly spend it, spurring employers to hire more people,” said Hickey. “And many Republicans are arguing against extending the payroll tax cut that provides at least some cushion to the strapped middle class. But they are continuing to demand more tax cuts for millionaires and billionaires.”

The Campaign for America’s Future is asking our supporters to contact Senators and Members of Congress and ask them to “Stop sabotaging the economy.”

Hickey noted that the temporary payroll tax cut is far from a magic elixir to heal the economy. What is really needed is massive investment in infrastructure, clean energy, education and youth job initiatives. And, he said, we need millionaires and billionaires to contribute their fair share, with higher income taxes and financial transaction taxes.

Here is the petition that the Campaign for America’s Future is asking activists to send to Senate Minority Leader Mitch McConnell and House Speaker John Boehner:

Stop Sabotaging The Economy
We the undersigned urge Speaker John Boehner and Senate Minority Leader Mitch McConnell to quit trying to sabotage the economy, and support the extension of the temporary payroll tax cut and long-term unemployment insurance without spending cuts that would negate the stimulative effects. This is the bare minimum Congress can do to keep the economy from sinking into a double-dip recession. Already, you have sought to sabotage the economy for political reasons, by blocking the American Jobs Act and cutting critical public investments. It is long past time to put politics aside and put jobs first.

Campaign for America's Future's Robert Borosage Testifies: "For This Nation to Succeed, The Super Committee Must `Fail'"

Liz Rose — Wed, 16 Nov 2011 12:10:25 -0500

Washington, DC – Campaign for America’s Future’s Robert Borosage is testifying before the Congressional Progressive Caucus’s hearing ad hoc hearing on job creation today. Excerpts from the testimony of Robert Borosage:

“Let me lay out the case clearly and make three points. 1. For this nation to succeed, the Super Committee must fail. 2. It is time to put people to work. 3. Shared Sacrifice is for suckers.

1. The Super Committee Must Fail

“If a drunken bus driver were careening down the wrong road that leads directly off a steep cliff, we would want him to fail. That is exactly the case with the Super Committee. They are headed down the wrong road and it will be ruinous if they succeed.

“This is a nation with 26 million people in need of full-time work. Wages are not keeping up with prices. Poverty, now at record levels, is spreading. One in five homes with a mortgage is underwater. Companies are sitting on trillions in profits waiting for customers…We should be having a fierce argument about how to put people to work and get this economy going. … Instead the Super Committee is peddling austerity, pushing Republicans to accept tax hikes (or at least pretend to accept them) and Democrats to embrace cuts in Social Security and Medicare. This is grand folly.

“The best deficit reduction plan is to put people back to work. In fact, America does not have a short-term debt problem. If we have a recovery, then our deficits will come down to manageable levels by the end of the decade. If we don’t have a recovery, then austerity will simply make things worse…. […]

“We need a sizable, sustained and serious jobs program now. And we cannot turn to austerity, to getting our books in order, until we put people back to work. If the Super Committee were to be useful, it would report out – with its expedited voting powers – a bold and sustained jobs proposal, combining increases in spending – on infrastructure, on direct public jobs programs, on aid to states and localities, on mortgage relief for homeowners – with cuts in taxes to enlist Republicans. It would then make the trigger for any turn to austerity not an arbitrary date, but when Americans are going back to work, and unemployment is down to 4 or 5%. […]

2. Put People To Work

“We know how to put people to work in a recession….. The need to renovate America’s decrepit and outmoded infrastructure is apparent. It is now dangerous to our lives and costly to our economy… We should be borrowing money, essentially for free, in large amounts to rebuild this country and put people to work.

“Second, youth unemployment in this country for those aged 16-19 is at the same level it was in Egypt when the Arab Spring erupted. For the first time in half century, a majority of young people from 16-24 is not working. We have a generation of veterans returning from wars, students graduating from high school that can’t find jobs….We should make government the employer of last resort for every person under 25. Create urban and green corps; subsidize small businesses and non-profits to put people to work…

“Third…– a manufacturing strategy based on making it America, transforming our trade and industrial policies, a commitment to taking a lead in the green industrial revolution that is sweeping the world, an investment agenda in education and training to insure that our people are the best trained in the world – are vital to building a new foundation for growth and shared prosperity….

3. Shared Sacrifice is for Suckers

“Once the economy recovers and people go back to work, it will then be time to face our long-term debt challenge, and get our accounts in order. Here too, however, the Super Committee is headed down the wrong road.

“Republicans have argued that we should balance our budget with spending cuts only – calling for dismantling Medicare, cutting Medicaid and Social Security, and exacting deep cuts in everything from education to child nutrition. Democrats have called for `shared sacrifice,’ offering to trade cuts in Medicare and Social Security for tax increases on the rich.

“But, when the rewards of growth are not shared, shared sacrifice is for suckers. The reality is that we face a huge mess because Wall Street went on a wilding that blew up the economy. Most Americans weren’t even invited to the party. Now under the banner of shared sacrifice, they are being asked to clean up the mess. Bull. Send the bill to those who had the party. […]

“We need to hike taxes on the wealthy and on Wall Street to help pay for the mess they created and to provide the funds, once people are back to work, to continue investing in America.

“Our long-term debt problem is not a spending problem or a tax problem. It is the product of a broken health care system. We pay nearly twice per capita what the rest of the industrial world pays on health care, with worse results.

“Cutting Medicare -- raising the eligibility age as some Democrats have proposed, dismantling it and turning into a voucher as Republicans have suggested -- does nothing for the soaring costs of our health care system. It simply pushes more of those costs on to those least able to afford them -- the elderly, the poor, the disabled.

“The cure to our long-term budget problem is to get health care costs under control. That requires taking on the drug companies, the insurance companies and the private hospital complexes that drive prices. […]

“You can’t get the right answer if you aren’t asking the right question. At this point, the Super Committee is asking all the wrong questions, and coming up with all the wrong answers.”

The testimony of Robert L. Borosage before the Congressional Progressive Caucus’s Jobs Hearing Nov. 16, 2011 http://www.ourfuture.org/news-release/2011114616/testimony-robert-borsosage-congressional-progressive-caucuss-jobs-hearing

Testimony of Robert Borsosage Before the Congressional Progressive Caucus's Jobs Hearing

Liz Rose — Wed, 16 Nov 2011 10:27:54 -0500

Testimony before the Congressional Progressive Caucus's Hearing on Jobs
By Robert L. Borosage
Co-Director, Campaign for America’s Future

November 16, 2011

I thank the Congressional Progressive Caucus for holding this hearing. I am honored by the invitation to participate. I want to the salute the CPC, and its co-chairs Rep. Keith Ellison and Rep. Raul Grijalva, for being a voice of reason in a Congress and a Capitol that has lost its way. Your leadership – from the People’s Budget, to this summer remarkable Jobs Tour, to the “Rebuild the American Dream” Jobs Framework that you have championed – has provided Americans with a clear way out of the mess that we are in. And now, as we head towards what is a foolish debate about the potential recommendations of the Super Committee, that misbegotten offspring of the calamitous debt ceiling deal this summer, your leadership and your voice are more important than ever.

Today, I want to speak candidly about the situation this nation faces. Tomorrow, tens of thousands of Americans across this country will demonstrate to demand jobs, not cuts, from the Congress. They demand action on jobs, and opposition to cuts in Social Security, Medicare, Medicaid and services vital to Americans. These demonstrators represent the 99%. As poll after poll has shown, they give voice to the priorities of the vast majorities of Americans. Authorities can remove Occupy Wall Street from Liberty Park, but they cannot silence an idea whose time has come. And this Congress should take heed.

Let me lay out the case clearly and make three points. 1. For this nation to succeed, the Super Committee must fail. 2. It is time to put people to work. 3. Shared Sacrifice is for suckers.

1. The Super Committee Must Fail

If a drunken bus driver were careening down the wrong road that leads directly off a steep cliff, we would want him to fail to get where he is going. That is exactly the case with the Super Committee. They are headed down the wrong road and it will be ruinous if they succeed in getting where they are going.

This is a nation with 26 million people in need of full-time work. Wages are not keeping up with prices. Poverty, now at record levels, is spreading. One in five homes with a mortgage is underwater. Companies are sitting on trillions in profits waiting for customers. Over the past eleven years, we have added 30 million more people and lost 1.8 million private sector jobs.

And next year, an economy that is barely growing will be hit with severe shocks. The boost provided by recovery act spending will come to an end. If unemployment insurance and the payroll tax cut are also not renewed, JPMorgan Chase analysts project that will cut growth by 1.5 to 2%. More and more mortgages in arrears will face foreclosure, with ruinous effect on their neighbors. Even if the Euro somehow survives, Europe is headed back into recession, with knock-off effects on our exposed banks and investment houses and on export markets.

We should be having a fierce argument about how to put people to work and get this economy going. Republicans should be demanding tax cuts, Democrats public investment and jobs programs. Instead the Super Committee is peddling austerity, pushing Republicans to accept tax hikes (or at least pretend to accept them) and Democrats to embrace cuts in Social Security and Medicare. This is grand folly.

The best deficit reduction plan is to put people back to work. In fact, America does not have a short-term debt problem. If we have a recovery, then our deficits will come down to manageable levels by the end of the decade. If we don’t have a recovery, then austerity will simply make things worse – forcing more workers onto food stamps and unemployment insurance, and lowering revenues.

We see the effects of austerity in Europe. The European Commission now predicts that Europe’s economy will “stagnate well into 2012” and threatens a “deep and prolonged recession.” In Greece, severe budget cuts have combined with economic recession to constrict GDP by 5.5% this year, with unemployment soaring. In Portugal, austerity cuts led the government to project the economy will shrink there by 5%. And, as Sprach Analyst and other global economic firms note, “the slower the growth, the harder the European debt crisis will be to resolve. Government austerity is actually making matters worse.”

We need a sizable, sustained and serious jobs program now. And we cannot turn to austerity, to getting our books in order, until we put people back to work. If the Super Committee were to be useful, it would report out – with its expedited voting powers – a bold and sustained jobs proposal, combining increases in spending – on infrastructure, on direct public jobs programs, on aid to states and localities, on mortgage relief for homeowners – with cuts in taxes to enlist Republicans. It would then make the trigger for any turn to austerity not an arbitrary date, but when Americans are going back to work, and unemployment is down to 4 or 5%.

Instead what we have is Washington’s version of an old Steve Martin routine. “I can tell you,” he used to say, “how to make a million dollars and not pay taxes. First, assume a million dollars, then don’t pay taxes.” The Super Committee says it can tell us how to recover and reduce deficits without paying much in taxes. First, assume a recovery.

But we can’t assume a recovery that is not taking place. First, stop going down a road that leads over a cliff. And start putting people to work.

2. Put People To Work

We know how to put people to work in a recession. The CPC “Rebuild the American Dream” Jobs Framework details the basic elements. The People’s Budget shows that the country can afford to do it – indeed can’t afford not to do it. Let me focus on a couple of elements of this agenda.

First, it is bizarre that those who claim we should let markets rule then choose to ignore what markets are saying. We will never have a better opportunity to rebuild America than we have right now. The need to renovate America’s decrepit and outmoded infrastructure is apparent. It is now dangerous to our lives and costly to our economy. Across the country, the construction industry is idle, with millions of skilled and unskilled workers ready to work. Work to be done and people to do it. And at this moment, investors across the world are, in essence, paying the US to allow them to store their money in our bonds. They are paying us to borrow money from them. Anyone with any business sense would jump at this alternative. We should be borrowing money, essentially for free, in large amounts to rebuild this country and put people to work.

Second, youth unemployment in this country for those aged 16-19 is at the same level it was in Egypt when the Arab Spring erupted. For the first time in half century, a majority of young people from 16-24 is not working. We have a generation of veterans returning from wars, students graduating from high school that can’t find jobs. This crushes hopes and destroys self-confidence. We’re witnessing 18 suicide attempts among veterans a day. No nation can afford to write off a generation. We should make government the employer of last resort for every person under 25. Create urban and green corps; subsidize small businesses and non-profits to put people to work. Let’s have this debate across the country.

Third, the other elements of the CPC Jobs Framework – a manufacturing strategy based on making it America, transforming our trade and industrial policies, a commitment to taking a lead in the green industrial revolution that is sweeping the world, an investment agenda in education and training to insure that our people are the best trained in the world – are vital to building a new foundation for growth and shared prosperity. The stark reality is that we can’t go back to the old economy and should not want to. That economy was not working for most Americans. The top 1% captured all of the rewards of growth over the last decade, while the typical household lost ground. It was built on bubbles and debt and unsustainable trade imbalances. I salute the CPC for demanding a new strategy for growth, not simply a short-term stimulus that cannot work.

3. Shared Sacrifice is for Suckers

Once the economy recovers and people go back to work, it will then be time to face our long-term debt challenge, and get our accounts in order. Here too, however, the Super Committee is headed down the wrong road.

Republicans have argued that we should balance our budget with spending cuts only – calling for dismantling Medicare, cutting Medicaid and Social Security, and exacting deep cuts in everything from education to child nutrition. Democrats have called for “shared sacrifice,” offering to trade cuts in Medicare and Social Security for tax increases on the rich.

But, when the rewards of growth are not shared, shared sacrifice is for suckers. The reality is that we face a huge mess because Wall Street went on a wilding that blew up the economy. Most Americans weren’t even invited to the party. Now under the banner of shared sacrifice, they are being asked to clean up the mess. Bull. Send the bill to those who had the party. And in fact, seniors and savers and homeowners are already paying a steep price for Wall Street’s excesses, as the policies of the Treasury Department and the Federal Reserve - -focusing on propping up otherwise insolvent banks – has resulted in seniors getting low returns on their savings, homeowners getting no relief on their mortgages, and taxpayers paying the price of the economic ruin left by the banks.

To then suggest that the most vulnerable in the society “share in the sacrifice” or pay more to clean up the mess is an insult.
Worse, it gets our long-term debt problem wrong. We need to hike taxes on the wealthy and on Wall Street to help pay for the mess they created and to provide the funds, once people are back to work, to continue investing in America.

But our long-term debt problem is not a spending problem or a tax problem. It is the product of a broken health care system. We pay nearly twice per capita what the rest of the industrial world pays on health care, with worse results. If we paid simply the average per capita of the industrial world, we would project surpluses in our long-term projections.

Cutting Medicare -- raising the eligibility age as some Democrats have proposed, dismantling it and turning into a voucher as Republicans have suggested -- does nothing for the soaring costs of our health care system. It simply pushes more of those costs on to those least able to afford them -- the elderly, the poor, the disabled.
The cure to our long-term budget problem is to get health care costs under control. That requires taking on the drug companies, the insurance companies and the private hospital complexes that drive prices. Obama’s health care plan is a first step down that road. A public option and negotiating bulk savings on prescription drugs would save even more. The Veteran’s Administration has modeled other savings, in electronic records and more. Medicare for all is where we will eventually end up.

But whatever the solution, no one should be confused about the problem. It isn’t out of control spending. It isn’t greedy seniors, generational warfare, or an “entitlements crisis.” It is a broken health care system, a service that every other industrial country has handled better than we have. Don’t ask the vulnerable to pay more of the out of control costs. Get the costs under control.

You can’t get the right answer if you aren’t asking the right question. At this point, the Super Committee is asking all the wrong questions, and coming up with all the wrong answers. I urge the Progressive Caucus members to do whatever they can to insure that it fails in its effort to drive this economy back over a cliff.