Two Years of Job Growth - Share Your Story

The private sector has added jobs for two straight years. This chart demonstrates how our economy is recovering from the worst economic downturn since the Great Depression.

Behind each of these numbers is the story of a business adding new members to their team or of an unemployed worker finding a new job to help support their family. But we also know that we need to do more.

Help illustrate the progress we’ve made over the last two years and the importance of continuing to strengthen our economy and create jobs in the months and years ahead:

Tell us your story at WhiteHouse.gov/JobStories

ICYMI: Santorum Aided Junk Lending and Bailouts—Hurting Minority Families, Launching Recession

Helped lead effort of promoting no-money-down home ownership as the bubble kept inflating

 

LAKE JACKSON, Texas – Here’s one for the history books, and you don’t need to speak as a historian to appreciate it.

 

On the campaign trail, Republican Presidential candidate Rick Santorum often touts a rigid disdain for government interference in the economy and federal bailouts for the wealthy few at the expense of our most vulnerable citizens.  But as U.S. Senator from Pennsylvania Santorum actively supported the junk lending that put minority families underwater and the subsequent bailouts that shielded unscrupulous non- and for-profit lenders, while leaving middle class minorities and the nation’s entire middle class holding the bag.

 

It remains to be seen whether the nation will have Santorum to thank for the coming inflation tax that erodes purchasing power for low- and fixed-income Americans, since taxpayers have yet to see the full bill for these bailouts.

 

In Bid to Boost Black Homeownership, Rick Santorum Fueled Housing Bubble That Led to Financial Crisis

By Charles C. Johnson

 

One of the consistent refrains from the Rick Santorum campaign is that he opposes government bailouts, but as a senator, he supported the something-for-nothing policy most responsible for the housing bubble. Like George W. Bush and other “compassionate conservatives,” he was naively obsessed with affordable housing for low-income potential home buyers, a mismanaged cause that led to billions in loan defaults and which the IRS called a “scam.”

 

In his book It Takes A Family (2005), Santorum wrote at length and approvingly of the Nehemiah Project, a Sacramento faith-based nonprofit that helped mostly black low-income buyers get access to home ownership through its down-payment assistance program. (The name Nehemiah, who rebuilt Jerusalem, comes from the Bible.)

 

But as Jeff Horwitz and Dave Jamieson report from the Huffington Post’s Investigative Fund, down-payment aid programs like Nehemiah effectively “pav[ed] the way for even riskier subprime loans by private lenders.” How did this happen? Horwitz and Jamieson explained in 2009.

 

A home builder would agree to make a “gift” to the nonprofit in an amount equal to the down payment. The nonprofit would give the cash to the buyer, often earning a generous fee for its role as middleman. In less than a decade, nonprofits had arranged more than a million no-money-down house sales around the country. By 2008, they represented more than a third of all loans backed by the Federal Housing Administration (FHA).

 

The Santorum-endorsed Nehemiah Project and its nearest competitor, AmeriDream, according to Horwitz and Jamieson, helped set up 392,000 mortgages worth $54 billion, earning tens of millions in fees for itself—and nearly a billion dollars each for Centex, D.R. Horton, and Dominion Homes, the builders who made the donations that made the shaky mortgages possible. The loans to the buyers, which ended up with triple the default rate of other FHA loans, often required no down payment at all from them, something of which Rick Santorum specifically approved. Indeed, Santorum proudly worked with Senator Dianne Feinstein (recipient of $1000 from Nehemiah’s CEO in 2006) and other Democrats to protect the Nehemiah Project from oversight from the IRS and HUD…

 

To read the full article online, please click here.

The Great Recession Continues…

Well, it's official: The "Great Recession" is now the longest recession since the Great Depression. Not only is it the longest - it is the deepest. As capitalism continues to falter, the recessions get longer and longer. The last longest one lasted the majority of George W. Bush's presidency. As you can see by the red line that signifies the current recession, we've got a long way to go before workers can consider the economy "recovered." Of course, we also have to consider how much worse and prolonged the crisis  would be without the weak efforts and stimulus and the auto bail  out. And how much the Republican plans for the economy would have severely  aggravated the economic crisis for working people if they had won out.
 
It's Not the Fault of Workers
Last week we posted and article that showed a link between education and unemployment rates. However, it is clear that even those with advanced education and experience also have trouble finding work. And an article in US News and World Report shows even business sources question attacking unemployment benefits. Rep. Rangel (D-NY) recently wrote an article on unemployment and poverty in the US, illustrating that unemployment insurance is an individual worker's insurance program, not a handout. Jobs are slowly returning, but what sort of jobs have been making a comeback? According to a data brief from the National Employment Law Project, "employment growth has been concentrated in lower-wage occupations, with minimal growth in mid-wage occupations and net losses in higher-wage occupations." In the same vein, Bloomberg agrees that low-wage jobs (like the ones Romney pats himself on the back for creating) aren't helping to end the recession.
 
On the Legislative Front
An article in the Wall Street Journalreports that more than a dozen states are considering legislation to make it illegal for companies to discriminate against the unemployed. This would mean that bosses could no longer legally put "must be currently employed" in the want ad, nor refuse work to someone who is unemployed. Unfortunately, in Colorado an unemployment discrimination bill failed to pass thanks to the Republican-controlled House there.
 
Workplace Victories!
Meanwhile, we're seeing good news reported in the People's World from Oklahoma and Illinois. In Tulsa, city workers win fight against privatization and in Chicago, workers at Republic Windows occupy again and win again.

Please make sure to visit the People's World online for the best in worker's news!

 
In solidarity,            
 
Scott Marshall
Labor Chair, CPUSA

Source: e-letter from CPUSA

Washington Post: Ron Paul Goes After Newt Gingrich

LAKE JACKSON, Texas – See below for the Washington Post’s coverage of the Ron Paul 2012 Presidential campaign’s latest web ad, released today.

 

Afternoon Fix: Ron Paul goes after Newt Gingrich

 

Another sign of frontrunner status: Rep. Ron Paul (R-Texas) is going after former House Speaker Newt Gingrich in a new web ad running on conservative sites in Iowa and across the country. The hard-hitting spot highlights Gingrich’s profits from Freddie Mac and the health-care industry, his support for an individual health-care mandate, and his general shifts in positions over the years. (Read more)

 
Video source: Ron Paul campaign

‘The Video That Newt Doesn’t Want You to See’

150-second online ad cross-examines the former Speaker’s record on policy, values and seriousness

 

LAKE JACKSON, Texas – The Ron Paul 2012 Presidential campaign announced today that it has released and will broadly distribute a 150-second online advertisement that challenges former House Speaker Newt Gingrich on a group of issues dear to conservative voters.

 

Much of the ad is in the former Speaker’s own voice, and after a few statements by Newt it follows with an image of him sitting on a loveseat beside former House Speaker Nancy Pelosi, the two chuckling over their agreement concerning as-yet scientifically proven anthropogenic global warming.  The ad also features Newt’s knee-jerk assault on Rep. Paul Ryan’s (R-WI) modest budget proposal, and the former Speaker’s lobbying ties to government mortgage giants Freddie Mac and Fannie Mae that perpetuated the financial crisis and recession.  In addition, the spot showcases discussion of Newt’s lobbying ties to healthcare firms prior to his support of an Obama-Pelosi-Reid individual mandate as part of the recent wildly unpopular healthcare reform, to the absolute horror of nationally-syndicated conservative radio talk show host Rush Limbaugh.

 

Taken together, claims made in the ad present conservative voters with a question about Newt, and indeed the ad concludes with this query.  And that is “What will you tell me next time?”

 

The campaign will send the ad to a far-reaching email list of conservative voters nationally, including in key early voting states, and it will purchase banner ads on national and state websites where conservative readers congregate.

 

“Our campaign is making a bold move to debunk the myth that the Newt we are seeing on the 2012 campaign trail is the conservative he has been touted to be all along.  This step we are taking is necessary, as voters are seeking authenticity among conservatives who are able to show a decades-long career of consistently walking the walk of Constitutional principles, limited government, and promoting sound money and economic policy.  Ron Paul is the only Republican presidential candidate with that record,” said Ron Paul 2012 National Campaign Chairman Jesse Benton.

Video source: Ron Paul campaign

The Great Recession Continues.​..

As you probably heard, the June unemployment numbers were disastrous at 9.2%. But more than that is the fact that we're seeing the largest number of people being unemployed for such a long period of time since the Great Depression (see chart above). It is absolutely vital that jobs become the focus of the workers' and progressive movements if we are going to turn the tide. We know the corporate media and corporate-owned GOP surely isn't going to do it - it is up to us!

Facts and Figures

Obviously, we need more than the 18,000 new jobs netted last month to improve the situation. As a matter of fact, it takes at least 90,000 new jobs per month just to keep up with population growth. The New York Times suggests that $2 out of every $10 of income in this country is coming from unemployment benefits, food stamps and the like. We know the economy is in bad shape, but what happens to it if workers who rely on those benefits lose them?  The Economic Policy Institute predicts the job slump will continue, as this People's World article by Mark Gruenberg spells out.

Also from the EPI, Ten Facts About the Recovery:

1. The real gap in the labor market is now around 11 million jobs.

2. Job growth during this recovery outpaces that following the 2001 recession, but is still too slow.

3. The loss of public-sector jobs is a huge obstacle to growth in this recovery.

4. Most of the improvement seen this recovery consists of a decline in layoffs, not an increase in hiring.

5. The current problem is not that we lack the right workers, it’s that we lack enough job openings.

6. The share of the working-age population with a job has not yet improved.

7. "Underemployment" has also improved very little in the recovery.

8. Unemployed workers continue to face near-record spells of unemployment.

9. Racial and ethnic minorities have fared worse than whites in both the recession and the recovery.

10. Wage growth remains extremely low.

While the talking heads in the media drone on and on about the debt ceiling and the need to cut programs for the poor, during President Obama's Twitter Town Hall last week, the majority of people were concerned about jobs. If only the corporate media would listen...

Action Taken - More Needed

In Dallas, Texas activists have taken to the Federal Building to handing out fliers stating the total unemployment rate is closer to 16.6%, as the People's World's Jim Lane reports. In New York, Sen. Kirsten Gillibrand has introduced legislation called the Hiring Heroes Act of 2011, to help veterans through training, personal employment assessments and workshops on how to write resumes and conduct interviews. Similar legislation has been introduced in the House of Representatives as well.

On the grassroots level, the Alliance for Retired Americans, the Leadership Conference and Coalition on Human Needs are among organizations hosting a toll free number to call Senators on July 14-15 at 1-866-251-4044.  Voice your opposition to any plans to Cut Social Security’s Cost-of-Living Adjustment (COLA) to reduce the deficit - even though Social Security doesn't contribute a penny to the deficit. The ARA is also urging calls to the White House on this.

Also, a wide array of labor and progressive organizations are partnering to build a movement to Rebuild the Dream.  It all starts with house meetings in Congressional Districts across the country this weekend, July 16-17.  MoveOn, Center for Community Change, Campaign for America's Future, AFSCME, Sierra Club and Leadership Conference are among the sponsors.  If you are not already hosting or attending a house party, you can find one and sign up at this website. 

Finally, on 7/19 in the evening look for a streaming video presentation on the Economic Crisis, which includes the debt crisis. Look for it on the CPUSA website.

Please make sure to visit the People's World online for the best in worker's news!              

In solidarity,            

Scott Marshall

Labor Chair, CPUSA

Source: letter from CPUSA

Is the 'Great Recession' Over for Working Familes?

Unfortunately, despite the small decrease in unemployment earlier this year, the Great Recession is still not over.  Below we've highlighted a few recent articles illustrating that we have a long, long way to go to get to a recovery.

News You Can Use

The number of people on food stamps in the United States is still growing.  According to an article by the Economic Populist, 44,587,328 People are on Food Stamps in the United States.

Initial unemployment claims stayed above 400,000 for the seventh straight week, with the next weekly report due Thursday, June 2. Weekly initial claims must fall well below 400,000 for a significant reduction in unemployment to take place. The return to a high rate of initial claims, after 8 weeks of slightly better performance earlier this year, is an ominous sign.

A recent study showed that only 55% of students graduating from college in 2009 and 2010 have been able to find jobs. Half of those jobs are low-wage jobs (like food service) that do not require a college degree. In 2006 and 2007 (before the economic crisis), 90% of college graduates found jobs.

The New York Times supports legislation to remove one barrier to job seekers: "Five states have limited the use of credit histories by potential employers and about 20 are considering similar measures... about 60 percent of employers now do credit checks on job applicants — up from less than 20 percent in the mid-1990s."

Nobel Prize winning economist Paul Krugman says creating jobs should be top priority: "In a rational world bringing an end to [high unemployment] would be our top economic priority... we could have W.P.A.-type programs putting the unemployed to work doing useful things like repairing roads — which would also, by raising incomes, make it easier for households to pay down debt."

In the People's World, Joe Sims argues that "only enormous public pressure" and defeating the ultra right in 2012 will get "a desperately needed public works green jobs program." And Pat Barile says in Political Affairs that there is "no recovery without job recovery." 

In this report from Wider Opportunities for Women and the Michigan League for Human Services that minimum wage is too low to live on and growth of low wage industries and budget cuts making it difficult to survive. On average a single Michigan worker with no children must earn at least $12.24 an hour to survive.  

Take Action!

Losing your job is bad enough. Not being able to apply for a new one because the want-ad reads “UNEMPLOYED NEED NOT APPLY” adds insult to injury. Take action: Tell your Representative and Senators to vote “yes” on the Fair Employment Act of 2011 today.

Please make sure to visit the People's World online for the best in worker's news!             

In solidarity,            

Scott Marshall

Labor Chair, CPUSA

Source: letter from CPUSA Labor Chair

Who Pays the Price of the Recession?

By SPGB

House­holds face the most dra­matic squeeze in liv­ing stan­dards since the 1920s, Mervyn King, the Gov­er­nor of the Bank of Eng­land warned. Fam­i­lies will see their dis­pos­able income eaten up as they “pay the inevitable price” for the finan­cial cri­sis. With wages fail­ing to keep pace with ris­ing infla­tion, work­ers’ take– home pay will end the year worth the same as in 2005 — the most pro­longed fall in liv­ing stan­dards for more than 80 years.

House­holds face the most dra­matic squeeze in liv­ing stan­dards since the 1920s, Mervyn King, the Gov­er­nor of the Bank of Eng­land warned. Fam­i­lies will see their dis­pos­able income eaten up as they “pay the inevitable price” for the finan­cial cri­sis. With wages fail­ing to keep pace with ris­ing infla­tion, work­ers’ take– home pay will end the year worth the same as in 2005 — the most pro­longed fall in liv­ing stan­dards for more than 80 years.
(Read on)

 

Source: World Socialist Party (US)