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Sunday, April 28, 2019

Nearly 102 Million Americans Do Not Have A Job Right Now – Worse Than At Any Point During The Last Recession

April 25, 2019 by Michael Snyder

http://theeconomiccollapseblog.com/archives/nearly-102-million-americans-do-not-have-a-job-right-now-worse-than-at-any-point-during-the-last-recession

Wouldn’t it be horrible if the number of Americans without a job was higher today than it was during the Great Recession of 2008 and 2009? Well, that is actually true. As you will see below, nearly 102 million Americans do not have a job right now, and at no point during the last recession did that number ever surpass the 100 million mark. Of course the U.S. population has grown a bit over the last decade, but as you will see below, the percentage of the population that is engaged in the labor force is only slightly above the depressingly low levels from the last recession. Sadly, the truth is that the rosy employment statistics that you are getting from the mainstream media are manufactured using smoke and mirrors, and by the time you are done reading this article you will understand what is really going on.

Before we dig into the long-term trends, let’s talk about what we just learned.

According to CNBC, initial claims for unemployment benefits just rose by the most that we have seen in 19 months…

Initial claims for state unemployment benefits jumped 37,000 to a seasonally adjusted 230,000 for the week ended April 20, the Labor Department said on Thursday. The increase was the largest since early September 2017.

And considering all of the other troubling economic signs that we have been witnessing lately, this makes perfect sense.

In addition, we need to remember that over the last decade lawmakers across the country have made it more difficult to apply for unemployment benefits and have reduced the amount of time that unemployed workers can receive them. In reality, the unemployment situation in this nation is far worse than the mainstream media is telling us.

When a working age American does not have a job, the federal number crunchers put them into one of two different categories. Either they are categorized as “unemployed” or they are categorized as “not in the labor force”.

But you have to add both of those categories together to get the total number of Americans that are not working.

Over the last decade, the number of Americans that are in the “unemployed” category has been steadily going down, but the number of Americans “not in the labor force” has been rapidly going up.

In both cases we are talking about Americans that do not have a job. It is just a matter of how the federal government chooses to categorize those individuals.

At this moment, we are told that only 6.2 million Americans are officially “unemployed”, and that sounds really, really good.

But that is only half the story.

What the mainstream media rarely mentions is the fact that the number of Americans categorized as “not in the labor force” has absolutely exploded since the last recession. Right now, that number is sitting at 95.577 million.

When you add 6.2 million “officially unemployed” Americans to 95.577 million Americans that are categorized as “not in the labor force”, you get a grand total of almost 102 million Americans that do not have a job right now.

If that sounds terrible to you, that is because it is terrible.

Yes, the U.S. population has been growing over the last decade, and that is part of the reason why the number of Americans “not in the labor force” has been growing.

But overall, the truth is that the level of unemployment in this country is not that much different than it was during the last recession.

John Williams of shadowstats.com tracks what the real employment figure would be if honest numbers were being used, and according to him the real rate of unemployment in the United States at the moment is 21.2 percent.

That is down from where it was a few years ago, but not by that much.

Another “honest” indicator that I like to look at is the civilian labor force participation rate.

In essence, it tells us what percentage of the working age population is actually engaged in the labor force.

Just before the last recession, the civilian labor force participation rate was sitting at about 66 percent, and that was pretty good.

But then the recession hit, and the civilian labor force participation rate fell below 63 percent, and it stayed between 62 percent and 63 percent for an extended period of time.

So where are we today?

At this moment, we are sitting at just 63.0 percent.

Does that look like a recovery to you?

Of course not.

If you would like to claim that we have had a very marginal “employment recovery” since the last recession, that is a legitimate argument to make. But anything beyond that is simply not being honest.

And now the U.S. economy is rapidly slowing down again, and most Americans are completely and totally unprepared for what is ahead.

The good news is that employment levels have been fairly stable in recent years, but the bad news is that unemployment claims are starting to shoot up again.

A number of the experts that I am hearing from expect job losses to escalate in the months ahead. Many of those that are currently living on the edge financially suddenly won’t be able to pay their mortgages or their bills.

Just like the last recession, we could potentially see millions of middle class Americans quickly lose everything once economic conditions start getting really bad.

The economy is not going to get any better than it is right now. As you look forward to the second half of 2019, I would make plans for rough sailing ahead.

Biden Says He’s the Workers’ Candidate, But He Has Worked To Cut Medicare and Social Security

FEATURES » APRIL 26, 2019

The universal retirement programs are Biden’s go-to sacrificial lambs.

BY BRANKO MARCETIC

http://inthesetimes.com/article/21856/joe-biden-cut-medicare-social-security-retirement-age

Former Vice President Joe Biden, who officially announced his presidential campaign on Thursday, is positioning himself as the defender of the embattled working class: giving speeches to union audiences, tapping organized labor for early support, walking the Stop & Shop picket lines, and pairing his announcement with a reportedly impending endorsement from the International Association of Firefighters, who have pledged to help him raise money.

However, an episode from the not-so-distant past cuts against this “friend of the working man” image: Biden's leading role in the Obama administration's 2011 efforts to slash the deficit by offering Republicans spending cuts to Medicare and Social Security.

At the time, the GOP had just finished giving then-President Obama a “shellacking” in the 2010 midterms, with a brand new majority in the House to show for it. Obama was largely focused on three things: raising the debt ceiling to avoid a looming and potentially catastrophic debt default; avoiding a government shutdown; and reaching a “grand bargain” with Republicans over spending, including to so-called entitlement programs like Social Security and Medicare that had long been in the crosshairs of the GOP and other deficit hawks.

Obama had been open about his plans to take on Social Security and Medicare, pledging to the staff of the Washington Post only a few days before his 2009 inauguration that he would “spend some political capital on this.” He tasked Biden, a veteran of congressional wheeling and dealing, with spearheading negotiations.

Biden had an ambivalent relationship with government spending. Considered in the 1980s to be one of the Democratic Party's new “neoliberals,” Biden called then for a spending freeze on Social Security and a higher Social Security retirement age. In 1995, he cast his vote for a balanced budget constitutional amendment, despite his earlier criticisms of it. The choice was, he said, “an imperfect amendment or continued spending.” When he ran for president 12 years later, he again called for the Social Security retirement age to go up.

In journalist Bob Woodward's 2012 book The Price of Politics, he portrays Biden during Obama’s first term eager to sacrifice Social Security and Medicare for the sake of bipartisan compromise and achieving what would be, in the eyes of Washington, a political victory.

Biden first displayed his friendliness to GOP entitlement hawks when he appointed former Wyoming Sen. Alan Simpson to co-chair the president's National Commission on Fiscal Responsibility, created in February 2010 via executive order. Simpson was one of Congress's most high-profile foes of entitlements and a proponent of Social Security privatization. In Woodward's telling, Biden even had to lightly pressure a somewhat reluctant Simpson to take the role.

Sure enough, the Simpson-Bowles Commission, as it came to be known, recommended cuts to Medicare, Medicaid and Social Security, leading liberal economist Paul Krugman to label the commission “terrible.” Failing to secure enough votes from the commission to recommend the plan to Congress, the proposals were never taken up.

But Biden took a far more direct role in undermining Social Security and Medicare when he headed tax policy negotiations with Senate Minority Leader Mitch McConnell in December 2010. In Woodward's telling, Biden's eagerness to cut a deal with the Republicans sometimes elicited outrage from his fellow Democrats, who felt he was giving too much away.

An Obama priority was to end the Bush tax cuts on top earners. Woodard reports that, to achieve this, Biden's team at one point considered dropping the poorest citizens—anyone who didn’t pay income taxes—from the Obama stimulus payments of $400 a year. Economist Gene Sperling, then a counselor to Treasury Secretary Timothy Geithner, strongly objected, calling the idea “immoral.” At Sperling’s urging, Biden’s team instead proposed a holiday for payroll taxes, which are used to fund Social Security and Medicare.

The final deal extended the Bush tax cuts, cut payroll taxes by $112 billion and met a host of other Republican demands: a lower estate tax with a higher exemption, new tax write-offs for businesses, and a maximum 15 percent capital gains tax rate locked in for two years. In return, unemployment insurance was extended for 13 months and the Opportunity Tax Credit for two years.

House Democrats were furious at both the estate tax provision and the Bush tax cut extension, partly because, according to Woodward, Biden had failed to mention the extension was on the table when he briefed Democratic leaders during the talks. Even conservative Democrats like House Whip Steny Hoyer had strongly opposed the extension, and the deal drew consternation from across the party. Dianne Feinstein balked at its size, and Bernie Sanders and two other senators interrupted Biden's presentation of the package. Sanders later vowed to “do everything I can to defeat this proposal,” including filibuster it. However, enough Democrats eventually capitulated, with some grumbling, for the deal to pass, overcoming an eight-hour filibuster by Sanders.

Biden subsequently led the debt negotiations with then-House Majority Leader Eric Cantor, Sen. Jon Kyl and other Republicans. Biden's “opening bid” was cutting $4 trillion in spending over ten years, with a 3 to 1 proportion of cuts to revenue. Biden later proposed $2 trillion in cuts to general spending, federal retirement funds, Medicare and Medicaid, and, at Cantor's urging, food stamps.

At one point, Biden suddenly called for $200 billion more in cuts that had never been discussed, which, according to Woodward, led then-Maryland Rep. Chris Van Hollen—also involved in the negotiations—to believe Biden had gone over to the Cantor-Kyl side. Biden again crossed Van Hollen when he offered to take revenue-raising out of the “trigger”—a combination of revenue raising and spending cuts meant to be equally unpalatable to both parties, which would automatically kick in if a deal failed to be reached.

Later in the negotiations, Biden dangled the possibility of Medicare cuts in return for more revenue—meaning higher taxes. Soon after, he suggested Democrats might be comfortable raising the eligibility age for entitlements, imposing means testing and changing the consumer price index calculation, known as CPI. (Means testing is often seen a Trojan horse for chipping away at these programs, because their universality is one of the reasons they've remained virtually untouchable for almost a century. It’s also been criticized for imposing an unnecessary and discouraging layer of bureaucracy.)

At one point, Biden reportedly called the Medicare provider tax a “scam.” “For a moment, Biden sounded like a Republican,” Woodward notes. Biden’s team was forced to remind him that such a move would force states to cut services to the poor, to which he replied, “We're going to do lots of hard things,” and so “we might as well do this.”

As Woodward writes, “this was a huge deal” for Cantor (“Biden had caved”), and showed the administration had adopted the Republican view on the matter of the Medicare provider tax. Despite this giveaway, the Republicans continued their stubborn opposition to any revenue increases in the proposed deal.

The negotiations were ultimately scuttled by Cantor, after Biden inadvertently revealed to him that then-Speaker of the House John Boehner was secretly holding his own “grand bargain” talks with Obama. But the Biden portrayed in Woodward's book continued this pattern of bending over backwards to achieve the Republicans' cooperation in subsequent negotiations.

When Obama later in 2011 put forward what he called the “big deal”—$4 trillion in deficit reduction, namely through “bend[ing] the cost curve” of Medicare, Medicaid, and possibly even Social Security—Biden insisted to Republicans this approach was the best way forward on cutting spending. According to Woodward’s account, Biden later appeared to offer Boehner a deal of one dollar cut from Medicare and Medicaid for every dollar of revenue.

Months into the negotiations with recalcitrant Republicans, Biden admitted that he and the administration had given away everything in their attempt to strike the “grand bargain.”

“We've given up on revenues, we've given on dollar for dollar,” Woodward quotes Biden telling McConnell. “All the major things we're interested in we've given up. So basically you've pushed us to the limit.”

Ironically, the fact that the “grand bargain” never happened—and that the Obama administration failed to team up with Republicans to cut Social Security and Medicare—was a result of a stubborn GOP's refusal to give ground on just about any issue.

Yet there are indications that another “grand bargain” may be in the cards should Biden win the presidency. In a speech last year at a joint event held by the Brookings Institution and the Biden Foundation, Biden said, “Paul Ryan was correct when he did the tax code. What’s the first thing he decided we needed to go after? Social Security and Medicare. We need to do something about Social Security and Medicare.” At the event, Biden suggested the programs should be means tested, and would require “adjustments.”

Biden’s willingness to go after the last remnants of the New Deal may well win him points from the political establishment, which has long treated such an approach as a mark of seriousness. Whether it wins him points among voters, who are overwhelmingly supportive of such programs, is another story altogether.

Joe Biden Is a Fraud, Plain and Simple

Norman Solomon

APR 24, 2019

https://www.truthdig.com/articles/joe-biden-is-a-phony-plain-and-simple/

Let’s be blunt: As a supposed friend of American workers, Joe Biden is a phony. And now that he’s running for president, Biden’s huge task is to hide his phoniness.

From the outset, with dim prospects from small donors, the Biden campaign is depending on big checks from the rich and corporate elites who greatly appreciate his services rendered. “He must rely heavily, at least at first, upon an old-fashioned network of money bundlers — political insiders, former ambassadors and business executives,” the New York Times reported on Tuesday.

Biden has a media image that exudes down-to-earth caring and advocacy for regular folks. But his actual record is a very different story.

During the 1970s, in his first Senate term, Biden spouted white backlash rhetoric, used tropes pandering to racism and teamed up with arch segregationists against measures like busing for school integration. He went on to be a fount of racially charged appeals and “predators on our streets” oratory on the Senate floor as he led the successful effort to pass the now-notorious 1994 crime bill.

A gavel in Biden’s hand repeatedly proved to be dangerous. In 1991, as chair of the Judiciary Committee, Biden prevented key witnesses from testifying to corroborate Anita Hill’s accusations of sexual harassment during the Clarence Thomas confirmation hearings for the Supreme Court. In 2002, as chair of the Foreign Relations Committee, Biden was the Senate’s most crucial supporter of the Iraq invasion.

Meanwhile, for well over four decades — while corporate media preened his image as “Lunch Bucket Joe” fighting for the middle class — Biden continued his assist for strengthening oligarchy as a powerful champion of legalizing corporate plunder on a mind-boggling scale.

Now, Joe Biden has arrived as a presidential candidate to rescue the Democratic Party from Bernie Sanders.

Urgency is in the media air. Last week, the New York Times told readers that “Stop Sanders” Democrats were “agonizing over his momentum.” The story was front-page news. At the Washington Post, a two-sentence headline appeared just above a nice photo of Biden: “Far-Left Policies Will Drive a 2020 Defeat, Centrist Democrats Fear. So They’re Floating Alternatives.”

Biden is the most reliable alternative for corporate America. He has what Sanders completely lacks—vast experience as an elected official serving the interests of credit-card companies, big banks, insurance firms and other parts of the financial services industry. His alignment with corporate interests has been comprehensive. It was a fulcrum of his entire political career when, in 1993, Sen. Biden voted yes while most Democrats in Congress voted against NAFTA.

In recent months, from his pro-corporate vantage point, Biden has been taking potshots at the progressive populism of Bernie Sanders. At a gathering in Alabama last fall, Biden said: “Guys, the wealthy are as patriotic as the poor. I know Bernie doesn’t like me saying that, but they are.” Later, Biden elaborated on the theme when he told an audience at the Brookings Institution, “I don’t think five hundred billionaires are the reason we’re in trouble. The folks at the top aren’t bad guys.”

Overall, in sharp contrast to the longstanding and continuing negative coverage of Sanders, mainstream media treatment of Biden often borders on reverential. The affection from so many high-profile political journalists toward Biden emerged yet again a few weeks ago during the uproar about his persistent pattern of intrusively touching women and girls. During one cable news show after another, reporters and pundits were at pains to emphasize his essential decency and fine qualities.

But lately, some independent-minded journalists have been exhuming what “Lunch Bucket Joe” is eager to keep buried. For instance:

** Libby Watson, Splinter News: “Joe Biden is telling striking workers he’s their friend while taking money from, and therefore being beholden to, the class of people oppressing them. According to Axios, Biden’s first fundraiser will be with David Cohen, the executive vice president of and principal lobbyist for Comcast. Comcast is one of America’s most hated companies, and for good reason. It represents everything that sucks for the modern consumer-citizen, for whom things like internet or TV access are extremely basic necessities, but who are usually given the option of purchasing it from just one or two companies.” What’s more, Comcast supports such policies as “ending net neutrality and repealing broadband privacy protections. . . . And Joe Biden is going to kick off his presidential campaign by begging for their money.”

** Ryan Cooper, The Week: “As a loyal toady of the large corporations (especially finance, insurance, and credit cards) that put their headquarters in Delaware because its suborned government allows them to evade regulations in other states, Biden voted for repeated rounds of deregulation in multiple areas and helped roll back anti-trust policy — often siding with Republicans in the process. He was a key architect of the infamous 2005 bankruptcy reform bill which made means tests much more strict and near-impossible to discharge student loans in bankruptcy.”

** Paul Waldman, The American Prospect: “Joe Biden, we are told over and over, is the one who can speak to the disaffected white men angry at the loss of their primacy. He’s the one who doesn’t like abortion, but is willing to let the ladies have them. He’s the one who tells white people to be nice to immigrants, even as he mirrors their xenophobia (‘You cannot go to a 7-Eleven or a Dunkin’ Donuts unless you have a slight Indian accent,’ he said in 2006). He’s the one who validates their racism and sexism while gently trying to assure them that they’re still welcome in the Democratic Party. . . . It’s not yet clear what policy agenda Biden will propose, though it’s likely to be pretty standard Democratic fare that rejects some of the more ambitious goals other candidates have embraced. But Biden represents something more fundamental: a link to the politics and political style of the past.”

** Rebecca Traister, The Cut: “Much of what Democrats blame Republicans for was enabled, quite literally, by Biden: Justices whose confirmation to the Supreme Court he rubber-stamped worked to disembowel affirmative action, collective bargaining rights, reproductive rights, voting rights. . . . In his years in power, Biden and his party (elected thanks to a nonwhite base enfranchised in the 1960s) built the carceral state that disproportionately imprisons and disenfranchises people of color, as part of what Michelle Alexander has described as the New Jim Crow. With his failure to treat seriously claims of sexual harassment made against powerful men on their way to accruing more power (claims rooted in prohibitions that emerged from the feminist and civil-rights movements of the 1970s), Biden created a precedent that surely made it easier for accused harassers, including Donald Trump and Brett Kavanaugh, to nonetheless ascend. Economic chasms and racial wealth gaps have yawned open, in part thanks to Joe Biden’s defenses of credit card companies, his support of that odious welfare-reform bill, his eagerness to support the repeal of Glass-Steagall.”

One of Biden’s illuminating actions came last year in Michigan when he gave a speech—for a fee of $200,000 including “travel allowance”—that praised the local Republican congressman, Fred Upton, just three weeks before the midterm election. From the podium, the former vice president lauded Upton as “one of the finest guys I’ve ever worked with.” For good measure, Biden refused to endorse Upton’s Democratic opponent, who went on to lose by less than 5 percent.

Biden likes to present himself as a protector of the elderly. Campaigning for Sen. Bill Nelson in Florida last autumn, Biden denounced Republicans for aiming to “cut Social Security, Medicare and Medicaid.” Yet five months earlier, speaking to the Brookings Institution on May 8, Biden spoke favorably of means testing that would go a long way toward damaging political support for Social Security and Medicare and smoothing the way for such cuts.

Indications of being a “moderate” and a “centrist” play well with the Washington press corps and corporate media, but amount to a surefire way to undermine enthusiasm and voter turnout from the base of the Democratic Party. The consequences have been catastrophic, and the danger of the party’s deference to corporate power looms ahead. Much touted by the same kind of insular punditry that insisted Hillary Clinton was an ideal candidate to defeat Donald Trump, the ostensible “electability” of Joe Biden has been refuted by careful analysis of data.

As a former Sanders delegate to the 2016 Democratic National Convention and a current coordinator of the relaunched independent Bernie Delegates Network for 2019, I remain convinced that the media meme about choosing between strong progressive commitments and capacity to defeat Trump is a false choice. On the contrary, Biden exemplifies a disastrous approach of jettisoning progressive principles and failing to provide a progressive populist alternative to right-wing populism. That’s the history of 2016. It should not be repeated.