Robert B. Reich's Blog, page 50

Amazon, and America’s Real Divide

While America was fixated on the most tumultuous midterm election in modern history, Amazon...

America Rejects Trumpism

Make no mistake: America has rejected Trumpism.No one seriously expected the Senate to flip, because...

Why We Must Vote Every Republican Out of Office

My friends, this may well be the most important election in our lifetimes.  Two years ago many of us...

TRUMP’S 30 BROKEN PROMISESTrump voters: Two years in, here’s...

TRUMP’S 30 BROKEN PROMISES

Trump voters: Two years in, here’s an updated list of Trump’s 30 biggest broken promises.

1. He told you he’d cut your taxes, and that the super-rich like him would pay more. You bought it. But his 2017 tax law has done the opposite. By 2027, according to the nonpartisan Tax Policy Center, the richest 1 percent will have received 83 percent of the tax cut and the richest 0.1 percent, 60 percent of it. But more than half of all Americans — 53 percent — will pay more in taxes. As Trump told his wealthy friends at Mar-a-Lago just days after the tax bill became law, “You all just got a lot richer.” 

2. He promised that the average family would see a $4,000 pay raise because of the tax law. You bought it. But real wages for most Americans are lower today than they were before the tax law went into effect.   

3. He promised to close special interest loopholes that have been so good for Wall Street investors but unfair to American workers, especially the notorious “carried interest” loophole for private-equity, hedge fund, and real estate partners. You bought it. But the new tax law kept the “carried interest” loophole.

4. He promised to bring an end to Kim Jong-Un’s nuclear program. You bought it. Kim Jong-Un hasn’t denuclearized. 

5. He told you he’d repeal Obamacare and replace it with something “beautiful,” including “insurance for everybody.” You bought it. But he didn’t repeal and he didn’t replace. (Just as well: His plan would have knocked at least 24 million Americans off health insurance, including many of you.) Instead, he’s doing what he can to cut it back and replace it with nothing. According to the Commonwealth Fund, about 4 million Americans have lost health insurance in the last two years.

6. He told you he wouldn’t “cut Social Security like every other Republican and I’m not going to cut Medicare or Medicaid.” You bought it. But now he’s planning such cuts in order to deal with the ballooning deficit created, in part, by the new tax law for corporations and the rich. 

7. He promised to protect anyone with pre-existing conditions. You bought it. But in June, his Justice Department told a federal court it would no longer defend provisions of Obamacare that protect patients with pre-existing conditions. Attorney General Jeff Sessions said the decision was made with Trump’s approval.

8. He said he’d build a “wall” across the southern border.You believed him. But there’s no wall.

9. He told you he’d invest $1 trillion in our nation’s crumbling infrastructure. You bought it. But after his giant tax cut for corporations and millionaires, there’s no money left for infrastructure. 

10. He said he’d drain the Washington swamp. You bought it. But he’s brought into his administration more billionaires, CEOs, and Wall Street moguls than in any administration in history, to make laws that will enrich their businesses, and he’s filled departments and agencies with former lobbyists, lawyers and consultants who are crafting new policies for the same industries they recently worked for.

11. He promised to re-institute a five-year ban on all executive branch officials lobbying the government for five years after they leave government.” You bought it. But the five-year ban he signed applies only to lobbying one’s former agency, not the government as a whole, and it doesn’t stop former officials from becoming lobbyists.

12. He said he’d use his business experience to whip the White House into shape. You bought it. But he has created the most dysfunctional, back-stabbing White House in modern history, and has already fired and replaced so many assistants that people there barely know who’s in charge of what. 

13. He told you he’d “bring down drug prices” by negotiating “like crazy” with drug companies. You bought it. But he hasn’t.

14. He told you he’d “stop foreign lobbyists from raising money for American elections.” You bought it. But foreign lobbyists are still raising money for American elections. 

15. He promised “six weeks of paid maternity leave to any mother with a newborn child whose employer does not provide the benefit.” You bought it. But the giant tax cut for corporations and the rich doesn’t leave any money for this. 

16. He said he’d create tax-free dependent care savings accounts for younger and elderly dependents, and have the government match contributions low-income families put into their savings accounts. You bought it. He’s done neither.

17. He said that on Day One he’d label China a “currency manipulator.” You bought it. But then he declared China is not a currency manipulator.

18. He said he “won’t bomb Syria.” You bought it. Then he bombed Syria.

19. After pulling out of the Paris accord, he said he’d negotiate a better deal on the environment. You bought it. There have been no negotiations.

20. He promised that the many women who accused him of sexual misconduct “will be sued after the election is over.” You bought it. He hasn’t sued them, presumably because he doesn’t want the truth to come out.

21. He said he would not be a president who took vacations, and criticized Barack Obama for taking too many vacations. You bought it. But since becoming President, he has spent a quarter of his days at one of his golf properties.

22. He vowed to “push colleges to cut the skyrocketing cost of tuition.” You believed him. But he hasn’t. Instead, he’s made it easier for for-profit college to defraud students. 

23. He said he’d force companies to keep jobs in America, and that there would be consequences for companies that shipped jobs abroad, especially government contractors. You believed him. Never before in U.S. history have federal contractors sent so many jobs overseas. There have been no consequences. 

24. He promised to end DACA. Then in January 2018 promised that “DACA recipients should not to be concerned… We’re going to solve the problem,” then he reversed himself again and vowed to end the program by March, 2018. Currently, the federal courts have stayed any action on it. 

25. He promised to revive the struggling coal industry and bring back lost coal mining jobs. You bought it. But coal is still losing customers as utilities turn to natural gas and renewable power. 

26. He promised to protect American steel jobs. You bought it. His tariffs on steel have protected some steel jobs. But industries that use steel – like automakers and construction – now have to pay more for the steel they use, with the result that their jobs are threatened. The Trade Partnership projects that 400,000 jobs will be lost among steel and aluminum users.

27. He said he’d make America safer. You believed him. But mass shootings keep rising, and Trump has failed to pass effective gun control legislation. After 17 died in Parkland, Florida, Trump promised “immediate action” on gun safety in schools, but has done nothing.

28. He promised to make two- and four-year colleges more affordable. You bought it. But Trump’s most recent budget contains deep cuts in aid for low-income and first-generation college students, reduces Federal Work Study, and eliminates the 50-year-old Federal Supplemental Educational Opportunity Grant program, which goes to more than a million poor college kids each year.

29. He promised to eliminate the federal deficit and bring down the debt. You bought it. Yet due to his massive tax cut mostly for corporations and the rich, and his military spending, the deficit is set to rise to $1 trillion, and the debt has ballooned to more than $21 trillion.

30. He said he’d release his taxes. “I’m under a routine audit and it’ll be released, and as soon as the audit is finished it will be released,” he promised during the campaign. You bought it. He still hasn’t released his taxes.

The Truth About Trump’s EconomyI keep hearing that although...

The Truth About Trump’s Economy

I keep hearing that although Trump may be a scoundrel or worse, he’s done a great job for the economy.

Baloney. Yes, the stock market is great, but 84 percent of it is owned by the richest 10 percent of Americans.

The economy is growing, but very little of that growth is trickling down to average Americans. Jobs may be back but they pay squat, especially compared to the rising costs of housing, healthcare, and education.

Trump slashed taxes on the wealthy and corporations, and he promised everyone else a wage boost of $4,000 but it never happened.

Meanwhile, employers continue to cut pension and healthcare benefits. Jobs are less secure than ever. One in 5 jobs is now held by a worker under contract, without any unemployment insurance, sick leave, or retirement savings.

Housing costs are skyrocketing, with a large portion of Americans now paying a third of their paychecks in rent or mortgages. 

Trump’s budget proposes drastic cuts in low-income housing. Trump’s undermining of the Affordable Care Act is also making life harder. Over the past two years, some 4 million people have lost healthcare coverage, according to the Commonwealth Fund.

The costs of college education continue to soar. All Trump has done is make it easier for for-profit colleges to defraud students.

And as the climate changes, more Americans are being hit with floods, mudslides, droughts, and wildfires. 

And what’s Trump’s response? Allow more carbon pollution into the atmosphere and make climate change even worse.

So don’t be fooled. Don’t judge this economy by the stock market or economic growth, or even the level of unemployment.

Look at actual living standards of average working Americans, and you see an economy that’s getting worse, not better.  

Hate Unbound

Demagogues rarely commit violence directly. Instead, they use blame, ridicule, fear and hate –...

The American Social ContractWith divisions this deep, it can...

The American Social Contract

With divisions this deep, it can often feel like we can’t agree on anything.

So, what do we share as Americans?

America does have a common set of norms about what makes a good society. These aren’t written down in the constitution.  They are unwritten standards that, taken as a whole,  define who we are and what we believe in.

Based on responses to polls,  a majority of us–Republicans, Democrats, and Independents– have consistently agreed to 5 simple principles. This is the American Social Contract.

First:  Everyone should have an equal chance to get ahead.

Second:  No one should be discriminated against because of race, religion, gender, or sexual preference.  

Third: No one who works full time should have to live in poverty.

Fourth: People should take responsibility for themselves and their families, but deserve help if they need it through no fault of their own.  

And fifth:  No one should have special privilege and power based on wealth or class.

These values are anchored in moral teachings and democratic ideals that often predate the founding of our republic.

We know we’ve veered far away from all these principles. But that doesn’t make us any less dedicated to them.

No matter how discouraging things may seem right now–regardless of the bigotry, cruelty, and greed that dominate our politics and corrupt our society–it’s important to remember the positive values we share and the social contract that binds us together.

Democrats: Don’t Go High or Low. Go Big and Bold

Donald Trump says the midterm elections are a “referendum about me.” Of course they are....

MESSAGE TO MILLENNIALSYou are the largest, most diverse, and...

MESSAGE TO MILLENNIALS

You are the largest, most diverse, and progressive group of
potential voters in American history, comprising fully 30 percent of the voting
age population.

 On November 6th, you have the power to alter the course of
American politics – flipping Congress, changing the leadership of states and
cities, making lawmakers act and look more like the people who are literally
the nation’s future.

But you need to vote. In the last midterm election, in 2014,
only 16 percent of eligible voters between the ages of 18 and 29 even bothered.

Now, I understand. I was young once. You have a lot on your
minds – starting jobs, and careers, and families. Also, unlike your
grandparents–some of whom were involved in civil rights, voting rights, women’s
rights, the anti-Vietnam War movement–you may not remember a time when
political action changed America for the better.

You don’t even recall when American democracy worked well.
Instead, during your lifetime you’ve watched big money take over Washington and
state capitals. Which may explain why only about 30 percent of you born in the
1980s think it “essential” to live in a democracy.

But the issues up for grabs this coming November 6 are not
ideological abstractions. They’re causes in which you have direct personal
stakes.

Take, for example, gun violence – which some of you have
experienced first-hand and have taken active roles trying to stop.

Or immigrant’s rights. Over 20 percent of you are Latino, and a
growing percent of you are from families that emigrated from Asia. Many of you
have directly experienced the consequences of Trump’s policies.

A woman’s right to choose whether to have a baby, and gay’s or
lesbian’s rights to marry. They’re also issues you’re deeply committed to.
They’ll be front and center if the Supreme Court, as expected, puts them back
into the hands of Congress and state legislatures.

You’re also concerned about student debt, access to college, and
opportunities to get ahead unimpeded by racial bigotry or sexual harassment.

And you’re worried about the environment. You know climate
change will hit you hardest since you will be on the planet longer than older
voters.

You’ve also seen that your votes count. You saw Hillary lose by
a relative handful of votes in places like Michigan, Wisconsin, and
Pennsylvania. You’re aware of the slim but increasingly real possibility of
taking back the Senate.

As doubtful as you are are about politics, or the differences
between the two parties, you also know that Donald Trump and his Republican
enablers want to take the nation backwards to an old, white, privileged,
isolated America. You don’t.

In my thirty-five years of teaching college students, I’ve not
encountered a generation as dedicated to making the nation better as yours.

So
my betting is on you, this November 6th. Please register and vote.  

Three Easy Fixes to Social Security and Medicare that...

Three Easy Fixes to Social Security and Medicare that Republicans Don’t Want You to Know About.

Republicans would love to get rid of Social Security and Medicare. But they can’t, because Social Security and Medicare are among the most popular of all federal programs. Besides, most Americans have been paying into them their whole working lives, and depend on them.

So how will Republicans attempt to end these programs? By doing nothing to save Medicare and Social Security. 

The trustees for Medicare and Social Security – of which I used to be one – say Medicare will run out of money by 2026, three years sooner than last projected, and Social Security will run out in 2034. 

But this doesn’t have to be the case.  

Here are three easy fixes to Social Security and Medicare that Republicans don’t want you to know about.

First: Raise the cap on income subject to Social Security payroll taxes. 

This year, that cap is $128,400, meaning that every dollar earned above $128,400 isn’t subject to Social Security taxes. 

So the typical CEO of a big company, who makes over $15 million, pays Social Security taxes on just $128,400 of his or her income, a tiny fraction. While the typical nurse practitioner, who takes home around $100,000, pays Social Security taxes on every dollar of his or her income.

In this era of raging inequality, that’s not fair. And it’s not even logical. Raise the cap.

Second: To help rein in Medicare costs, allow the government to use its huge bargaining power to negotiate lower drug prices. 

Big Pharma has gotten legislation barring the government from negotiating lower drug prices. That legislation should be repealed. 

Big Pharma says this would mean less research on new drugs, but that’s baloney. Pharma already spends more on advertising, marketing, and lobbying than it does on research.  

Third: To deal with a basic reason why Social Security and Medicare are running out of money, allow more young immigrants into the U.S.

The basic reason why Social Security and Medicare are running out of money is the American population continues to age and live longer – leaving a relatively smaller working population to pay into Social Security and Medicare. 

What to do? Allow in more young immigrants. Immigrants and their children are the fastest growing segment of the working population, already contributing billions in payroll taxes every year. Instead of shutting immigrants out, allowing more immigrants into the country will help secure the future of Social Security and Medicare.  

This isn’t rocket science, folks. Raise the cap, negotiate drug prices, and allow in more immigrants. Do these three things and you won’t have to worry about Social Security and Medicare not being there when you need it.