Senator Margaret DaytonPin the Senate
Word from the Minority Caucus- Utah Democratic Leader Todd Taylor’s Memorial Details Announced March 9, 2012Dear Friends, The out pouring of support for our late friend, Todd Taylor, has been incredible. Phone calls from every corner of Utah, across the entire country, and even from Europe have made it to our office, to say nothing of the memorials on Twitter and Facebook. Todd had an astonishing impact on all of […]Utah Senate Democrats
- Utah Democratic Leader Todd Taylor’s Memorial Details Announced March 9, 2012
Dear Sir/Madame,
I am writing to you today because I have great concerns regarding the economic state of America. I am a second year student and a single mother of four, who fears for her children’s future.
As I see it, America needs a Macroeconomic transformation. The structural unemployment, facing America requires immediate attention, similar to what Roosevelt was facing in the Great Depression. In the study of labor economics we learn about different types of unemployment. There is frictional unemployment, temporary while firm and worker agree to mutually benefiting terms of employment. Seasonal unemployment again temporary and predictable, more troublesome is cyclical unemployment where the economy has entered a recession and the government must do something to stimulate the economy.
Current State of the Nations economy as reported by the Congressional Budget Committee
“The United States is facing profound budgetary and economic challenges. At 8.5 percent of gross domestic product (GDP), the $1.3 trillion budget deficit that the Congressional Budget Office (CBO) projects for 2011 will be the third-largest shortfall in the past 65 years (exceeded only by the deficits of the preceding two years). This year’s deficit stems in part from the long shadow cast on the U.S. economy by the financial crisis and the recent recession”. CBO
As Americans we are facing, record unemployment, loss of housing, lack of confidence, personal debt, to tight borrowing standards and national debt…
My immediate concerns; at the end of this year the following programs are scheduled to end; payroll tax cuts end, unemployment insurance ends; Medicare doctor re-imbursement program ends.
Our nations leading economists advise that if this happens, the country will go from stall to slump, with a GDP loss of 1.5%-2.0% according to Zandi. Even Goldman Sachs and JP Morgan Chase are in favor of payroll extensions.
Unemployment has seen very little growth in the past two years. Drastic, innovative, intervention by the US Government must happen now. Please help.
We are a house divided…….
“There is great danger it seems to me to arise from the constant habit which prevails where anything is opposed or objected to, or referring without rhyme or reason to the Constitution as a means of preventing its accomplishment, thus creating the general impression that the Constitution is but a barrier to progress instead of being the broad highway through which alone true progress may be enjoyed” FDR
Regardless of your personal feelings, “Obama care” didn’t just arrive out of one man’s ego, driven him to make his mark on history; but rather due to the over inflated health care and insurance cost that the American people were forced to pay. American healthcare and insurance companies are oligopolies that are/were gouging the public. The intent of government intervention, as I understood it, was too create an affordable Healthcare option, (I do understand that in order to get the bill passed, it became more complicated than that) therefore giving people the choice of a less expensive alternative, forcing the oligopoly to bring prices down to a true and fair medium. I think “Obama Care” would work if these businesses weren’t protected by the Republican House and Senate. Instead they scream socialism without giving the program and “the invisible hand” a chance to redistribute and bring balance.
The American dream, capitalism although proven to be mostly successful for many years, if unmonitored can lead to a bankrupt nation. Adam Smith’s dream has become an American nightmare. The Wealth of Nations, meant to be a blue print of a Utopian society where any man could be as wealthy as hard work and dedication would allow. We now face a nation divided with 1% of the nation holding 99% of the money. I think Adam Smith overestimated the integrity of men and government to be trusted with an unregulated free-market.
When facing a similar situation and recognizing a national emergency Roosevelt enacted the NRA (National Recovery Act) to immediately get the country back to work, at the time creating four million jobs. The result was, a substantial rise in the total of industrial profits-a rise from deficit figures in the first quarter of 1933 bringing the nation to a new level of sustained profits within one year from the inauguration of NRA. Public confidence had been restored.
Roosevelt did not do this alone, the American people, the working class banded together through strikes, unionization and protest.
I personally have been unemployed or underemployed for five years now.
We Must Come Together
Agreed by most, all America is producing these days is debt. Today, December 14, 2011 a house bill sits in waiting. The Keystone XL pipeline lies in Canada with the potential of producing 700,000 barrels of oil. This bill is backed by American trade unions, and if I can trust what I hear from our state senators, includes very little “short term” environmental risk, and is even backed by the states environmental impact team if safely routed around Ogallala aquaphor in Nebraska. The construction of this pipeline promises to put 100,000 Americans to work, yet still it sits in a Bi-Partisan conundrum.
Being a single mother of four, the last thing I want to do is burn more fossil fuels, but if this means an immediate jump start to the economy and possibly some continuity across party lines. I am for it. As long as it is regulated through a cap and trade auction and is following EPA regulations. This is the ARA (American Recovery Act, Roosevelt, portion of NRA package) laid at our feet.
Roosevelt developed the, Public Works and National Recovery Administration program designed for trades and industries adopting codes for fair competition, sake working environment and established the minimum wage. Our countries minimum wage, compared to the price of living hasn’t risen since the 1970’s although we’ve seen significant growth in corporate profits. Years of corporate greed has created the largest wage earning gap, where 99 percent of the nations money.
This graph illustrates the findings from the New York Times showing that although more and more Americans are finding it harder to make ends meet corporate profits continue to grow in the years prior to the recession. Titled, “The corporate profits boom vs. recent earning reports”, explains that extended boom in company profits has largely been fueled by long-term infrastructural change like globalization and increasingly efficient technologies and that as these forces kept the company a float had the opposite effect in workers ability to receive pay increases. Why? Corporate America is fueled by greed and lacks the integrity to be unregulated.
Economic Collapse, What happened?
As a concerned mother and student, I needed to know how “The Greatest Country in the World” into came into such desperate measures. Due to some great professors and the wealth of information available to ANYONE seeking, I have come up with the following, it started with the removal of “Glass Stiegel Act” followed by; Freddie, Fanimac, AIG and the overall financial system failings fueled by the creation of the derivative market; including the housing crisis because our mortgages were being “hedged” by derivatives; 10 years of reckless expansion in credit and financial leveraging. When Roosevelt faced a similar situation he, “recognized the past evils of the banking system”, he enacted. “Careful checking of new securities under the Securities Exchange Act “, sincerely hoping that as a result people will be discouraged in unhappy efforts to get rich quick by speculating in securities”. There are honest, transparent people in Washington who fought and warned against deregulation as all this as it was happening, Elizabeth Warren, Brooksley Born, even Warren Buffet.
The problem with derivatives is nothing is being produced, the same pie is being sliced smaller and smaller but, no larger pie. The pie, was our home mortgages gambled in the dervitive market, which grew to a $531 trillion business in 2008 from $106 trillion in 2002. Adam Smith states from Wealth of Nations, “The quantity of every commodity which human industry can either purchase or produce, naturally regulates itself in every country according to the effect demand….” Pg. 283 W.O.N or according to the demand of those who are willing to pay the whole rent, lobour and profits which must be paid in order to prepare and bring to market”. We weren’t producing anything new. The financial institutions just gave the same pie a new name.
Derivatives were fabricated and sold as a tool to “hedge” your investment, allowing financial institutions to take more risk, issuing bad mortgages and accruing more corporate debt. Greenspan quoted “We think it would be a mistake to more deeply regulate the contracts” Another huge proponent of “hedge funds” was Robert Rubin, then Citibank Chairman
Facing a minor over supply problem in the housing market and a suppression of wage as historical cycles indicate the banking institutions develop looser credit. The eight year Republican run lead this country to the brink of economic collapse. According to the Peterson Institute we narrowly averted Great Depression 2.0. It could have been worse if not for programs such as TARP. TARP was emergency first aid, necessary to save the Nation. We were facing an aortic rupture and needed to stop the bleedings. The bailouts, though necessary, lacked regulation and accountability, something Washington had become accustomed to.
Regardless of who is responsible, Allan Greenspan whose fierce opposition to financial regulation, amidst his tenure1987-2006 started this landslide of corruption, speculation and deregulation, something needs to change. Was it the removal of the Glass Stiegel Act, which allowed financial institutions to grant credit and then borrow against your loan? Our elected congress increased the share of their mortgages that had to go low-and moderate income buyers, from 40 percent in 1996 to 52 percent in 2005. This blessed and promoted subprime mortgage lending”, according to a report by Robert Samuelson of Newsweek, this also lead to our crisis, one reason why the Glass Stiegel Act was enacted is because securities activities can be risky, leading to enormous losses. Such losses could threaten the integrity of the deposits and then in turn, the Government insures deposits and could, if such failure occurred be required to pay back large sums if the depositories were to collapse as the results of the securities losses.”
That’s exactly what happened. Washington has to change. The Glass Stiegel Act came from what we had learned from the failures prior to Great Depression; so our state senators, President and leading Washington officials did away with it. It only took ten years for us to be in this place which history, and our forefathers tried so hard to warn us about.
How do we recover?-BIG GREEN BUSINESS
Secretary Bowles, leads a progressive sustainable energy movement. New England and the state of Massachusetts are transitioning to sustainable energy with RGGI. RGGI is showing great success. Already retaining savings and return on investment. RGGI (Regional Greenhouse Gas Initiative) can be used as standards for a Federal, but state ran program. How it works, “States sell nearly all emission allowances through auctions and invest proceeds in consumer benefits; energy efficiency, renewable energy, and other clean energy technologies. RGGI is spurring innovation in the clean energy and creating green jobs in each state”, according to RGGI web site. Secretary Bowles delivered a copy of how this program can be delivered nationally to the House last week December 13th. This initiative ensures a significant boost to the economy including strict monitoring of the system, NO MONOPOLIES, and a five year compliance period.
We’ve suffered great loss to Japan and Germany from failure to act on solar business.
The Keystone XL pipeline project can hopefully create some continuity across party lines. I would like to see the pipeline treated as a Public Works project. Still it is fossil fuel, is it possible with advances in hybrid cars that if done right America can budget these 700,000 barrels and no longer be reliant on foreign oil? I believe it is possible but not without honest supervision. I propose that the Keystone pipeline is the first in true “self directed worker” FEDERAL PUBLIC WORKS project.
This concept of self directed free enterprise, where the workers run the business was developed by Professor Richard D. Wolf, professor of Economics Emeritus, University of Massachusetts. Should be the first of many Public Works projects. The workers for 4 days a week do their specified duties in pipeline production, and on the 5th act as the board of directors arranging with the state on how to appropriate the surplus they produce. Workers will function in double capacity with the decision making of what to produce, how to produce, and how to distribute the profits. An internal re-organization of business is what this country needs. No longer will the 1 percent own everything like; media, banking, insurance and healthcare all owned by this 1%. Although just a beginning, this type of movement can lead to a much needed re-distribution of wealth, and can be done with many much needed transitions into clean energy projects.
Climate change is not a myth
We must come together, climate change IS NOT A MYTH, “the likelihood that humans are contributing to climate change is 95% accurate”, according to the Intergovernmental Panel on Climate Change (IPCC). While watching CSPANN this week there was a United States State Senator, opponent of Cap and Trade “saying damn cold last week at Lambough field”, scoffing at the prior senator’s factual studies and findings regarding climate change. Are you kidding, with all the scientific backing there are those who still question Global Warming. Personally, we at 84121 are experiencing significant health risked due to the state of the air. Kids are kept in at recess. As our state senator might say, it’s just a grey winter day, but I know better because I can drive up out of the pollution and its several degrees warmer and a beautiful blue bird day. Greed and fear is causing once well meaning Americans to skoff at scientific findings.
Since studies have been done on the polar ice-caps we can determine that in the 1700’s carbon dioxide emissions were at 280ppm, from a core sample obtained in 2005 the contained emission were at 380ppm. Also, Nitrous Oxide is up 17%, Methane gas has risen 15% if the current trending and policies stay in place CO2 emissions are rising 1.5ppm, and by the year 2055 we expect emission of 528ppm (figure does not account for population growth). Global sea levels will rise in the next 12-25 years killing 100’s of millions. This information comes from The Hadley Institute, a leading research group.
What does that mean to me and my prosperity? America must do better. We are experiencing a stagnant economy meanwhile Germany and China are profiting as being leaders in the Green movement.
Green energy is big business; China in the course of ten years completely replaced their entire stock of two stroke scooters and mo-peds into all-electric vehicles. There are now forty million electric scooters and bicycles in China. Meanwhile, at the same time in America, though high-brids have been developed, we see this marketing and development of American muscle cars New Mustang’s, The Charger, New Camaro’s and more and more SUV’s, although cool killing our environment and ruining the environment for our prosperity.
Bid Ideas for Job Growth
The pipeline is just the beginning and an exercise in Bi-partisanship. America must focus her efforts on creating a sustainable growing environment and economy. The “failure” of Solara shouldn’t be seen as “it won’t work”.
“For the children”, I’m reminded of the preachers wife from the Simpsons cartoon, but there is nothing funny about the future of this planet. Dr. Contreras, Utah EPA, describes risk assessment as a necessary tool of communication in order to create an essential change. How is it that half the country gets what’s going on and the changes necessary, and the other half turns a blind eye. I think we need an amazing, charismatic person to describe this to the world. I unwittingly thought this person could be Obama.
There is big business in retro fitting this nations buildings to safer more efficient models and standards. There should be no unemployment in the construction trades. Cold fusion plants, wind, solar and thermal energy all work and transitioning will greatly help our future. Ill take a job replacing all stop lights with LED. New England and Massachusetts are developing a cold fusion plant. The technology exists, we are capable yet still Congress sits doing nothing, locked in a stale mate of futility.
A couple ideas off the top of my head.
1. Rebates for every American to purchase energy efficient light bulbs.
2. Continuation of solar, insulation, window replacements rebates on a national level.
3. Federal subsidies for businesses to become efficient.
4. Federal rebates 20% off purchase price for hybrid/efficient vehicles.
5.
We need a Paradigm Shift in How We Exist in the World
According to today’s Wikipedia findings, “The only remaining signatory not to have ratified the protocol is the United States. Other states yet to ratify Kyoto include Afghanistan, Andorra and South Sudan, after Somalia”. So it’s just America, Afghanistan, Sudan and Somalia who are not joining the Global Crusade to Save our Environment. Okay America this sounds wrong and yes, it is Wikipedia but it’s true. Far less advanced societies are developing safe energy alternatives.
Global warming is not a myth, we will see great destruction in our lifetime if major changes are not made. China is kicking our buts and making it look easy. They show us that it can be done and life will go on as usual with minor effort on our part, except that we will need to GO TO WORK.
Please, Senators and Congressmen and women support green initiatives, we want job creation through sustainable energy. This is how a nation evolves, the people demand change and change happens.
Sincerely,
Michelle Engstrand
Single mother of four and economics student