TODAY: Responding to the Stock Market Crash | Green Energy Push | Taking On 'The Crazies' | A #BlackLivesMatter Goal Achieved
MORNING MESSAGE
The
Fed needs to hold off on any move to raise interest rates. But inaction is not
enough. It was given a dual mandate by Congress: to stabilize prices and keep
employment at reasonable levels. Activist groups like the “Fed Up” coalition,
led by the Center for Popular Democracy (and including the Campaign for
America’s Future), are working to move the Fed toward that second
objective.
Responding to the Stock Market Crash
David
Cay Johnston argues “better government” is the antidote to stock market
jitters. “Monday’s sudden stock market drops from Beijing to New York simply
reflect the leverage of high-speed traders, many buying shares with $30 of
borrowed money for every $1 of equity. With that much leverage, panic easily
sets in when stock prices become volatile. … This scenario is entirely
preventable: If the government limited stock trades to ban or minimize borrowed
money, there would be less speculation and less instability. In the long term,
stock prices would move in greater accord with the profits and expected profits
of each company.”
Paul
Krugman pokes at GOP presidential candidate critique of the stock market
fall. “You could, conceivably, tell a story in which America becomes
dependent on Chinese loans; then, when China gets in trouble, it demands
repayment, pushing us into crisis too. But any story along those lines has a
corollary: we should be seeing a spike in US interest rates as our credit line
gets pulled. What you actually see is falling rates.”
The
long-term toll of the Great Recession on the unemployed remains severe. A
new National Bureau of Economic Research report: “Of the workers who lost
full-time jobs between 2007 and 2009, Farber reports, only about 50 percent were
employed in January 2010 and only about 75 percent of those were re-employed in
full-time jobs … [Henry S.] Farber concludes that the costs of job losses in the
Great Recession were unusually severe and remain substantial years later. Most
importantly, workers laid off in the Great Recession and its aftermath have been
much less successful at finding new jobs, particularly full-time jobs, than
those laid off in earlier periods.”
AFL-CIO
Economist William Spriggs says racial disparities in employment argue against a
Fed rate increase. “Economists have convinced themselves there is little to
explain about the persistence of the disparity in black and white unemployment
rates, the ratio of which remains stubbornly at 2-to-1. … We don’t know what
would happen if the nation maintained its commitment to full employment, because
just as the black unemployment rates near parity with whites, our economic
policy switches all reverse to slow the economy, increase unemployment and push
blacks off the path to equality. The Fed needs to see that its policies are part
of that problem.”
Green Energy Push
President
Obama announces green energy initiatives. “Obama announced executive actions
and money from the private sector to help Americans transition to cleaner
energy, including $1 billion in loan guarantees for innovative technology,
improving solar panels, installing solar panels on military housing and helping
low-income families become more energy-efficient.”
Hillary
Clinton may take a public position on the Keystone XL pipeline. Politico:
“John Podesta, the chairman of Hillary Clinton’s presidential campaign, said on
Monday the former secretary of state is growing impatient over the long-awaited
decision on the Keystone XL oil pipeline and she “may have more to say” on the
issue if the Obama administration’s decision doesn’t come soon.”
Taking On 'The Crazies'
President
Obama promises to take on “the crazies” this fall. “At a Democratic
fundraiser Monday night in Nevada, Obama declared himself ready for the
challenges he faces this fall … Obama said that as he’d ridden to the fundraiser
with Senate Democratic leader Harry Reid, they’d done some reminiscing and spent
some time ‘figuring out how we are going to deal with the crazies in terms of
managing some problems.'”
Politico:
House Republican leaders want to prevent a government shutdown but don’t know
how. “House GOP leaders would rather use’s Congress’ broad investigative
powers to build an overwhelming case against the group, which they believe would
allow them to hammer Planned Parenthood for months and put Democrats under
enormous pressure to turn against the women’s health organization. But
conservatives … see the fight over Planned Parenthood’s money as one of the top
legislative priorities of 2015 … And conservatives seem unafraid to shut down
the government to achieve their objective — though they say that’s not their
goal.”
“Run
Warren Run” backers aren’t flocking to Joe Biden, says Politico. “[M]ost of
the pro-Warren political machinery and organization in the early states has
already moved over to Sanders with them, leaving Biden with little to claim. …
[Charles Chamberlain, president of Democracy for America,] added, “I think it’s
pretty unlikely that you’ll see a lot of switching from people who support
Bernie Sanders to support Joe Biden.”
The
Hill: “Republicans worry Trump will hurt Senate chances.” “The real estate
mogul’s controversial comments on immigration could cause a trickle-down effect
and haunt Republican Senate candidates, party strategists say.”
A #BlackLivesMatter Goal Achieved
Courts
serving Ferguson, Mo., wipe out past warrants, court fees. Al Jazeera
America: “A new municipal judge in Ferguson, Missouri, on Monday ordered
sweeping changes to court practices in response to a scathing Justice Department
report following the police shooting of unarmed black teenager Michael Brown a
year ago. … The changes come five months after the U.S. Department of Justice
strongly criticized city leaders in its report, saying the police force and
court worked together to exploit people in order to raise revenue.”
Black
Lives Matter organization releases sweeping police reform proposal. “The
platform, dubbed “Campaign Zero”, is a 10-pronged plan that hopes to end police
killings by limiting police interventions, improving community interactions, and
ensuring accountability.”
Progressive
Breakfast is a daily morning email highlighting news stories of interest to
activists. Progressive Breakfast is a project of the Campaign for America's
Future. more
»