Economy -- A Progressive Growth Strategy

November 28, 2007

by Faiz Shakir, Amanda Terkel, Satyam Khanna, Matt Corley, and Ali Frick

ECONOMY

A Progressive Growth Strategy

Though the White House continues to assert that the economy is "resilient," with President Bush telling Americans they should "know this economy is strong," Americans are increasingly feeling the pinch. Yesterday, New York Times columnist Bob Herbert wrote that Americans are crippled by a "debilitating anxiety" about the economy. To win in 2008, he wrote, a candidate needs "a full-blown economic strategy that addresses the growing anxiety over the fading American dream." The Center for American Progress released such a comprehensive economic strategy today, called Progressive Growth, which outlines the means to restoring American growth, security, and economic opportunity.

A COMPREHENSIVE PLAN: Despite Bush's half-hearted assurances, Americans are increasingly concerned about the economy. Two-thirds of Americans worry that economic conditions are getting worse, "by far the highest number since 1992." "Today, working Americans feel less and less secure, and their prospects for economic mobility seem more and more remote," according to Progressive Growth. "Working hard and playing by the rules is not enough." To address this anxiety, American Progress offers the next administration a comprehensive economic strategy that balances growth and opportunity, recognizing that "growth will be greatest when all Americans are contributing their full potential and taking home their fair share." The strategy places energy transformation at its center, emphasizing the restoration of the social safety net and seeking to create genuine opportunity for all Americans. "Restoring economic mobility for Americans, sustaining economic growth in a global economy, and combating global warming are great challenges, but America is up to the task," Progressive Growth states. "From sweatshops to segregation to the space race, the progressive commitment to fairness, human dignity, and what FDR called 'bold, persistent experimentation' has driven our country to overcome obstacles as great as these we face today."

A LOW CARBON-BASED ECONOMY: Two weeks ago, the Nobel Prize-winning Intergovernmental Panel on Climate Change (IPCC) presented its sternest warning yet about the need to immediately tackle climate change. "If there's no action before 2012, that's too late. What we do in the next two to three years will determine our future. This is the defining moment," said IPCC head Rajendra Pachauri. Progressive Growth recognizes the need for immediate action on global warming, "the greatest moral and economic challenge of our time." The report focuses its economic strategy on building a low-carbon energy infrastructure, based on clean, renewable energy sources, that could "fuel the creation of good jobs and good prospects for workers at all skill levels." The report also calls for the implementation of an economy-wide cap-and-trade system for greenhouse gases, the transformation of our transportation and electricity systems, and the energetic commitment to working internationally against global warming. Although the White House continues to turn its back on the need for immediate action, Congress is making important strides toward global warming reduction with the imminent passage of an energy bill, which contains stronger fuel economy and cap-and-trade measures. The Senate Environment Committee will meet next week to enhance and pass the American Climate Security Act, S. 2191, which would create a two percent annual reduction in global warming pollution. Smart energy policies can stimulate the economy in needed ways. A recent study by the Union of Concerned Scientists found that a 20 percent national renewable electricity standard by 2020 would create 185,000 jobs each year, save consumers $10.5 billion on energy bills, and reduce carbon dioxide levels by 223 million metric tons a year. (An American Progress video highlights what a new energy economy would look like. Watch it here.)

FOCUS ON INNOVATION: A recent study found that students in Singapore and other Asian countries significantly outperform American students in math and science, even those in high-performing states like Massachusetts. Progressive Growth recognizes that innovation, science, and technology drive economic growth and job creation and increase American productivity. "Our average standard of living will double every 23 years if our productivity growth rate is 3 percent" in inflation adjusted terms. American Progress's innovation agenda calls for an increase in federal research funding, education opportunities to build science and technology skills, and restoration of the integrity of U.S. science and technology policies. Bush policies have weakened science education and slashed funding for scientific research.

RESTORING THE AMERICAN DREAM: Under Bush, inequality in America has widened dramatically. Paul Krugman wrote last year, "For the first time in our history, so much growth is being siphoned off to a small, wealthy minority that most Americans are failing to gain ground even during a time of economic growth -- and they know it." The Progressive Growth authors note, "The land of the American Dream now has less inter-generational income mobility than many other developed countries." Eighty percent of Americans agree that rising costs of health care, housing, and retirement have made middle class life unaffordable for most people. Yet it does not have to be this way. American Progress believes that the American Dream of economic opportunity can be restored through ensuring quality, affordable health care for everyone, providing access to lifelong education, laying the foundation for income increases through unionization and a fair tax system, and creating chances to build wealth through retirement savings and investments. Just as progressives jumpstarted the American Dream in the early 20th century, so too can they lead the way towards restoring economic opportunity today.

ADMINISTRATION -- WHITE HOUSE INVESTIGATES HEAD OF ROVE INQUIRY: The Wall Street Journal reports today that Office of Special Counsel chief Scott Bloch, who is "investigating Karl Rove's White House political operation, is facing allegations that he improperly deleted computer files during another probe, using a private computer-help company, Geeks on Call." His acts could be considered obstruction of justice. The allegations claim that Bloch "erased all the files on his office personal computer late last year." Bloch has previously investigated "the firing of at least one U.S. attorney, missing White House e-mails, and White House efforts to keep presidential appointees attuned to Republican political priorities." The White House has ordered an investigation into claims that Bloch "improperly retaliated against employees and dismissed whistleblower cases without adequate examination." Bloch "believes the White House may have a conflict of interest in pressing the inquiry into his conduct while his office investigates the White House political operation."

IRAQ -- POLL OF JOURNALISTS BELIEVE CONDITIONS IN IRAQ HAVE 'GOTTEN WORSE': In a new Project for Excellence in Journalism poll, journalists in Iraq describe conditions there "as the most perilous they have ever encountered." Fifty-eight percent of those polled -- "most of them veteran war correspondents" -- say that "at least one of their Iraqi staff had been killed or kidnapped in the last year alone," and "eight out of ten, feel that, over time, conditions for telling the story of Iraq have gotten worse, not better." The results also undercut right-wing arguments that the media's reporting on the war is too negative. In April, Sen. John McCain (R-AZ) wrote in the Washington Post, "The new political-military strategy is beginning to show results. But most Americans are not aware because much of the media are not reporting it or devote far more attention to car bombs and mortar attacks that reveal little about the strategic direction of the war." Just three percent of journalists believe that their coverage is too negative. Fifteen percent, however, believe that their reporting actually paints too rosy a picture.

RELIGION -- RELIGIOUS MINORITY CANDIDATE MITT ROMNEY COMES OUT IN FAVOR OF RELIGIOUS BIGOTRY: In a recent interview with Republican presidential candidate Mitt Romney, former Fox News pundit Mansoor Ijaz asked whether Romney would consider nominating a Muslim to be a member of his national security cabinet. "[B]ased on the numbers of American Muslims [as a percentage] in our population, I cannot see that a cabinet position would be justified," replied Romney. "I would imagine that Muslims could serve at lower levels of my administration." The argument by Romney, a Mormon, is odd considering that based on 2001 numbers, there were 2.8 million Mormons and 1.1 million Muslims in the United States. Surveys since that time indicate that the number of Muslims may have eclipsed the number of Mormons living in the Uhited States. Romney spun the comments, saying he is "open to having people of any faith, ethnic group," but he would "choose people based on their merits." "This guy is lying now to the American people" and "he made a serious mistake in judgment in trying to disown what he said," Ijaz told the Huffington Post. As Talking Point Memo's Greg Sargent reported, two witnesses say he made similar remarks three months earlier.

Despite increased public optimism due to the recent downturn in violence in Iraq, a new Pew Research poll finds that President Bush "remains as unpopular as ever" and "the public remains just as committed to bringing U.S. troops home."

Al Hubbard, the chairman of President Bush's National Economic Council, is submitting his resignation today. He departs at a time when the White House is struggling "with a mortgage crisis that has sparked foreclosures, declining home prices and concern about prospects for recession."

Congressional Democrats will focus on the economy next week in an effort to address public fears about an approaching recession. "House leaders have discussed holding an economic summit and are poised to bring a long-awaited energy bill to the House floor next week."

Following "a lobbying blitzkrieg," the Federal Communications Commission handed "a significant, though not total, victory" to the cable industry yesterday with a compromise that will postpone for months the question of expanding "the agency's regulatory authority over" the industry.

In a new report, the United Nations warns that "progress toward prosperity" will be reversed in the world's poorest regions unless rich countries begin "curbing emissions linked to global warming" while also helping poorer ones transition to renewable energy sources.

"Some of the Army's best captains are getting out of the war in Iraq. They are tired of long deployments and the strain on their families. But in hopes of getting captains to re-enlist for another three years, the military is offering a $35,000 bonus."

"The Department of Veterans Affairs fell farther behind this year in its attempts to give veterans timely decisions on their disability claims, new records show." Furthermore, "the VA put a positive spin on many of its numbers, and in two instances provided Congress with incorrect or incomplete figures," according to McClatchy.

A Saudi court has agreed to review the case of a girl who was sentenced to jail time and flogging "after being gang raped by seven men." The Saudi Justice Ministry had earlier accused her of being an "adulteress who invited the attack." The victim explained what happened to ABC News.

"Federal wildlife regulators will revise seven controversial decisions on endangered species" made by President Bush's controversial Interior Department appointee Julie MacDonald, who quit after criticisms that she "routinely questioned and sometimes overruled recommendations by biologists and other field staffers."

And finally: With the resignation of Sen. Trent Lott (R-MS), Sen. Larry Craig (R-ID) is the last member "left standing" in the Singing Senators barbershop quartet, which previously included Sens. Jim Jeffords (I-VT) and John Ashcroft (R-MO). The Washington Post's Al Kamen writes, "It's the biggest musical breakup since the legendary Ben E. King left the Drifters."

Google yesterday "announced it would spend 'tens of millions' of dollars next year in research and development and investments in an effort to drive down the cost of large-scale renewable energy to make it cheaper than coal."

WASHINGTON: "New power plants built to light Washington must limit their greenhouse-gas pollution, according to a ruling Tuesday."

MASSACHUSETTS: Gov. Deval Patrick (D) signed "ambitious legislation yesterday creating the Commonwealth Corps, a program encouraging state residents to volunteer."

VIRGINIA: "The aggressive push by some politicians to make Virginia inhospitable to illegal immigrants has the potential to hurt the state's economy, Gov. Tim Kaine (D) said."

THINK PROGRESS: REPORT: The coalition of the defeated and the consequences of supporting President Bush's war.

HUFFINGTON POST: Rep. Rush Holt (D-NJ) sets Time's Joe Klein straight on what's really in the FISA RESTORE Act.

SILICON ALLEY INSIDER: Fox Business News displays employee of the National Retail Federation as just a disinterested "online shopper."

RH REALITY CHECK: Ten leading scientists write to leaders in Congress imploring them to stop supporting funding for abstinence-only education.

"[L]et's face it, a lot of people think she messed up on this one."
-- NBC News, 4/6/07, on Speaker Nancy Pelosi's (D-CA) meeting with Syrian President Bashar Al-Assad

VERSUS

"The Syrian participation is already seen in Washington as a success for the Bush administration."
-- AP, 11/25/07, on President Bush's meeting with Syrian officials at the Annapolis conference

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