By the Numbers: The Incredibly Shrinking American Middle Class | Smart Charts, What Matters Today | BillMoyers.com

By the Numbers: The Incredibly Shrinking American Middle Class | Smart Charts, What Matters Today | BillMoyers.com

Go to the site and scroll down to read some of the statistics and look at the graphs.  Do your eyes glaze over before you get to the end?   Too bad because the information is really sobering.  The middle class is getting poorer.  

House Passes Bill Gutting Obamacare

The House of Representatives is at it again. We mentioned on Tuesday that republicans have threatened to shut down the federal government if Obamacare is put into effect - and it seems today that they're following through on that promise, according to USA Today.

John Boehner 

Of course, everyone in politics knows that trying to compromise is just showing weakness and both parties should stick to their guns if they want to get anything done.

Why is it that our political system is so polarized - and what can we do about it?


'

Global warming: if you ignore it, will it go away?

 
 Temperature chart for the last 11,000 years

 The Climate Commission in Australia was dismantled this week as a new government took office:
 
Mr Hunt said the decision to axe the commission - which had been well flagged by the Coalition before its win at the September election - was about streamlining government processes and would save $1.6 million a year. He said future advice and analysis on climate change would now be provided by the Environment Department.  Mr Hunt also signed off on a brief ordering legislation be prepared to dismantle the independent Climate Change Authority as part of the government's plans to axe the carbon price.  The authority was created to advise the government on national emissions-reduction targets and carbon price caps. It is due to release a draft of a report on targets and caps next month.The moves to shut down the institutions came as the government faces hurdles with closing another body, the $10 billion Clean Energy Finance Corporation.

Read more: http://www.theage.com.au/federal-politics/political-news/axe-comes-down-on-climate-body-20130919-2u2mc.html#ixzz2fQvee0Vr

Food Stamp Program Cut

The New York Times reported today that the House of Representatives passed a bill passed a bill cutting millions from food stamps.

Republicans claim that the bill "closes loopholes," and requires employment to receive welfare - ideas they claim come from Clinton. Democrats argue that the cuts are "draconian," and will "plunge millions into poverty."

With the budget getting farther and farther out of control, it's clear that something has to give - but what? 

Public policy is an interesting thing, in that bad policies are often passed due to a small group benefiting strongly and making their voices heard. For example, if the government were to pass a bill saying that all members of our class get $1,000,000 by taxing everyone in the U.S. an extra $.04, you can be sure that we'd be in D.C. urging lawmakers to pass the law - while the rest of the nation is apathetic. And of course this works the opposite way as well - which is why "the rich" seem to always get their way. If the government introduces a bill to raise their taxes, they're vehement while the general populous doesn't feel the effects.

So how do we decide where to cut, and how do we do it in a way that benefits the most people?

"The SEC approved its settlement with J.P. Morgan by a two-to-one vote, according to a person familiar with the vote. Democratic commissioners Luis Aguilar and Kara Stein approved the settlement, and Michael Piwowar, a newly appointed Republican commissioner, voted against it, the person says." This quote is from the this article talking about JP Morgan's "Whale probe." I find it interesting that even at this level we find divide between Republicans and Democrats. Do you the vote was ideologically influenced? Do the think there is more to why other Republicans recused themselves beyond previous employment?

The Fed Continues Stimulus

Reuters reported today that the Fed will continue to purchase bonds at a rate of $85 billion a month, due to concern about a rise in borrowing costs. Many financial markets were considering the opposite news - and thus the DOW is up over 100 points after a slow start to the day and the S&P has hit a record high.

The Fed chooses to continue its open-ended stimulus program

Of course, the Federal Reserve has stated that they will continue to buy bonds as long as inflation is not an issue - and mention that while the economy is currently stabilizing, it is not growing. How much longer do you feel the Fed will continue to buy bonds at this rate - and what effect would stopping the stimulus have on the economy as a whole?

The Money Behind the Shutdown Crisis - NYTimes.com

 An editorial from the New York Times today talks about Republican Party politics in Congress:
 

If you’re wondering why so many House Republicans seem to believe they can force President Obama to accept a “defunding” of the health care reform law by threatening a government shutdown or a default, it’s because these groups have promised to inflict political pain on any Republican official who doesn’t go along.Heritage Action and the Senate Conservatives Fund have each released scorecards showing which lawmakers have pledged to “defund Obamacare.” When a senator like Tom Coburn of Oklahoma refuses to pledge, right-wing activists are told: “Please contact Senator Coburn and tell him it’s dishonest to say you oppose Obamacare, but then vote to fund it. Tell him he swore an oath to support and defend the Constitution. Mr. Schock and 10 other lawmakers considered suspiciously squishy by the Club for Growth were designated as RINO’s (Republicans in name only), and the club has vowed to find primary opponents and support them with cash — a formidable threat considering that it spent $18 million backing conservative candidates in the 2012 cycle. Americans for Prosperity, a Koch brothers group that has already spent millions on ads fighting health reform, is beginning a new campaign to delay the law’s effects.These groups, all financed with secret and unlimited money, feed on chaos and would like nothing better than to claim credit for pushing Washington into another crisis. Winning an ideological victory is far more important to them than the severe economic effects of a shutdown or, worse, a default, which could shatter the credit markets. 

An article in the Wall Street Journal  (go here) discusses the same issue.  Note how reasonable the wrangling sounds....just politics as usual.

So...its a good time to take a public finance course.  We get to see if a government shutdown really occurs.  And spend some time trying to understand why Obamacare is so despised.  Secret money....defunding programs that are mandated by law.  Doesn't sound very democratic to me.  What do you think?

The Money Behind the Shutdown Crisis - NYTimes.com