Despite
Some Good Economic News, The Status Quo Is Not Enough
President
Obama told a Philadelphia crowd: “… last year, across every age, every race in
America, incomes rose and the poverty rate fell" ... But there are lingering
problems ... Many parts of the country are still wrestling with extreme poverty
and lagging incomes. Americans pay more today for needs like health care and
higher education than they did in the 1990s ... Democrats need a vision that is
compelling enough to rout congressional Republicans, if not this year than in
elections to come. They must meet Teddy Roosevelt’s test of leadership by
“daring greatly.”
Are INCOMES RISING FAST ENOUGH?
Hedrick
Smith finds recent middle-class income gains insufficient: “…It’s an
important milestone worth cheering that last year, families smack in the middle
of the middle class saw their household incomes rise by 5.2% … But what’s
disturbing is that this took so long to happen. This was the first increase in
median family income since 2007 … the typical American family [is] worse off in
2015 than in 2007 … and also worse off than in 1999.”
Despite
reports, income in rural areas is rising, notes NYT: “While incomes in
metropolitan areas grew 6 percent, those in rural areas fell 2 percent [in the
Census’ Current Population Survey] … The number is wrong. Median household
incomes in rural America actually grew 3.4 percent in 2015 … The correct median
income number is derived from another survey, called the American Community
Survey, also compiled by the Census Bureau … the Current Population Survey’s
sample is too small for precise geographic estimates.”
STIGLITZ V. TRUMP ON TRADE
Nobel
laureate Joseph Stiglitz hits Trump on trade. Bloomberg: “The U.S. economy
would be a big loser if Donald Trump wins the presidential election and imposes
new tariffs on imports from China, according to Nobel laureate Joseph Stiglitz.
The end result would be a trade war, a correction in U.S. living standards and a
net loss of American jobs, Stiglitz said.”
Trump
could start a trade war “with ease” says NYT’s Justin Wolfers: “Trade
politics reflect an important asymmetry: New trade agreements require
congressional approval, but undoing existing commitments does not. And so vast
areas of international economic policy can be changed with just a president’s
say-so.”
Clinton
to reach out to millennials in Temple U. speech today. NYT: “…Democrats have
grown increasingly alarmed at her standing with millennial voters, many of whom
have drifted toward third-party candidates … The campaign said it would
emphasize policies, like Mrs. Clinton’s plan for debt-free college education,
that carried particular resonance with young voters …”
CRUNCH TIME FOR CONGRESS
Senate
hopes to pass bill keeping government open this week. NYT: “The Senate was
supposed to begin moving ahead last week, but a variety of contentious issues
led by the lingering dispute over funding to combat the Zika virus delayed the
vote to allow more negotiations. Other disputes also remain, including a
proposal to restore operations at the Export-Import Bank, flood relief for
Louisiana and aid for Flint … The House is expected to consider the spending
plan after the Senate acts, but it will face considerable pressure to approve it
since the Senate is likely to have taken its leave by the time the House has its
say.”
House
conservatives may be prepared to give up. Politico: “…House conservatives
seem resigned to a continuing resolution (CR) that ends in December, even if
they don’t like it … said Rep. Bill Flores (R-Texas), chairman of the
conservative Republican Study Committee … ‘because Senate Republicans have
caved, really the only likely path forward is a short-term CR[.]'”
BREAKFAST SIDES
HUD
moves to toward policy change to desegregate housing. NYT: “HUD calculates
what it judges to be ‘fair-market rent’ for a broad metropolitan region — a
method that, however unintentionally, provides many poor families with subsidies
sufficient to lift them into only marginally better neighborhoods, if that …
Julián Castro, wants to fine-tune how fair-market rent is calculated, by basing
it on housing costs in individual ZIP codes rather than in entire regions …
There is a potential downside: Families that remain in neighborhoods where rents
are comparatively low would find their vouchers cut … A final decision by HUD is
expected this fall.”
Wells
Fargo CEO to face Senate Banking Committee Tuesday and Mylan CEO to face
House committee Wednesday, reports NYT.
“Tribes
open new front in fight over pipelines” reports The Hill: “The Obama
administration is launching a review of energy permits on American Indian lands,
opening a new front in the fight over oil pipelines in the United States … For
Indian activists, the review raises the possibility federal officials could
consult more with tribes and lead to fewer projects … The industry warns that an
exhaustive review of permitting on Indian land could have a major impact on
infrastructure projects, both energy and beyond.”
“Most
states on track to meet emissions targets they call burden” finds Reuters:
“The 27 states challenging Obama’s Clean Power Plan in court say the lower
emissions levels it would impose are an undue burden. But most are likely to hit
them anyway … 21 of the 27 states suing to block the Clean Power Plan are on
track to meet its 2024 targets with existing plants and planned
investments.”
Progressive
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