Policy Papers
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June 2013 Unemployment Report
June 2013 Unemployment Rate: 7.6 percent Unemployed Americans: 11.8 million “Real” Unemployment The “real” unemployment or U-6 rate is 14.3 percent for June 2013, an increase of 0.5 percentage points. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 22.6 million. These are people... Continue Reading
June 18, 2013
On Appropriations, Senate Democrats Spend More
This week the Senate will begin its appropriations season, setting both 302(a) [total] and 302(b) [subcommittee allocation] levels. The House has already begun passing individual fiscal year 2014 appropriations bills that will total $967 billion in non-emergency spending. This amount is equal to the total post-sequester Budget Control Act (BCA) cap. The House’s appropriations allocations would breach the BCA’s defense spending limit (function 050); however, the top line amount is... Continue Reading
June 12, 2013
Student Loans by the Numbers
On June 6, the Senate fell short of the necessary votes to address the looming deadline that will return interest rates on new subsidized Stafford student loans to 6.8 percent. Republicans in the House and Senate, along with the Obama Administration, have proposed tying Stafford loans to market-based rates. Senate Democrats, however, are pushing for a permanent tax increase as a temporary, short-term solution. Here are some facts on the issue. An estimated 7.7 million undergraduate students are... Continue Reading
June 11, 2013
June 2013: Policy by the Numbers
The key number last week was 8,000. According to the May jobs report, the manufacturing sector lost 8,000 jobs last month. This came on the heels of manufacturing activity falling to its lowest level in four years. Other recent numbers also have major policy implications. Continue Reading
June 11, 2013
Job Growth Is Still Too Sluggish
Last Friday’s employment report showed job creation continues to be far below what we should have nearly four years after the end of the recession. The Department of Labor reported an unemployment rate of 7.6 percent for May 2013, an increase of 0.1 percentage points, and an increase of 175,000 nonfarm jobs. “At the present slow pace of job growth, it will require more than a decade to get back to full employment defined by prerecession standards.” -- The Wall Street... Continue Reading
June 7, 2013
May 2013 Unemployment
May 2013 Unemployment Rate: 7.6 percent Unemployed Americans: 11.8 million “Real” Unemployment The “real” unemployment or U-6 rate is 13.8 percent for May 2013. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 21.9 million. These are people who are unemployed (11.8 million), want... Continue Reading
June 4, 2013
Democrats Play Politics on Student Loans
If Congress does not act before July 1, the interest rate paid by college students on subsidized federal Stafford loans will return to 6.8 percent. Bipartisan solutions have been offered to simplify the interest rate structure, but Senate Democrats are standing in the way. Federal Stafford Loans and Interest Rates As a political strategy, Democrats promised in 2006 to cut student loan interest rates in half -- to 3.4 percent. The rates applied to subsidized and unsubsidized federal Stafford... Continue Reading
June 4, 2013
Social Security Trustees: Take Action “As Soon As Possible”
On May 31, the Social Security trustees issued their annual report on the financial status of the program. Their findings confirm that Social Security is in such financial trouble that delaying reform is not an option. In 2033, Even the IOUs Are Gone Social Security’s combined trust funds will be completely depleted in 2033. This means that even the Treasury bonds held by Social Security – IOUs Washington has given itself – will be gone, and Social Security will have to rely... Continue Reading
May 21, 2013
CBO Confirms Obama Budget Shirks Responsibility
Last Friday, CBO released its estimate of the President’s budget, which showed $1.1 trillion in reduced borrowing. That is significantly less deficit reduction than the President’s claim of $1.8 trillion when he released his budget just last month. CBO also shows almost all of the deficit reduction is through higher taxes. The President’s budget would raise nearly $1 trillion in taxes to pay for canceling the nearly $1 trillion sequester. This is nothing new from President... Continue Reading
May 7, 2013
Reid Sequester Bill Is Unserious
Before the recess, and in the midst of the FAA debate, Majority Leader Reid introduced and placed on the Senate calendar S. 788, a bill to cancel the sequester. Instead of a serious debate about priorities, this bill proposes a fake offset – the war spending gimmick – for the higher spending that results from canceling the sequester. Unfortunately, Senator Reid has misled the American people in his attempts to portray his bill as common sense and a responsible way to budget. It is... Continue Reading
May 7, 2013
We Need More Jobs
According to the Bureau of Labor Statistics, employment rose by 165,000 last month, and the jobless rate fell to 7.5 percent. These April gains favored retail and business services industries, while other major sectors of our economy continue to struggle. Job growth has not been consistent or broad-based enough for the Federal Reserve to pull back in its buying of $85 billion a month in long-term bonds. A broader “real” measure of unemployment, the U-6 rate, increased last month to... Continue Reading
May 3, 2013
April 2013 Unemployment Report
April 2013 Unemployment Rate: 7.5 percent Unemployed Americans: 11.7 million “Real” Unemployment The “real” unemployment or U-6 rate is 13.9 percent for April 2013. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 21.9 million. These are people who are unemployed (11.7... Continue Reading
April 26, 2013
The Obama Economy Continues to Struggle
Today we learned the U.S. economy has continued its weak and uncertain recovery under President Obama. Real GDP grew at an annualized rate of 2.5 percent in the first quarter of 2013, below expectations of 3.2 percent. Since the recession ended in 2009, President Obama’s policies have led to underwhelming results: 2010 real growth was 2.4 percent 2011 real growth was 1.8 percent 2012 real growth was 2.2 percent 2013 Q1 growth is 2.5 percent President Obama’s stagnant economic... Continue Reading
April 16, 2013
Understanding the New Obama CPI
The President included a chained Consumer Price Index (CPI) proposal in his budget, which is a start toward real reform. But he did not propose the traditional idea of chained CPI; instead he proposed a “superlative CPI.” The White House claims this is chained CPI that would “protect vulnerable populations.” In other words, it would be means tested. “… means-testing chain CPI defeats the alleged purpose of the change. Why not just go all the way and invent a... Continue Reading
April 10, 2013
Obama Budgeting from Behind
Today, 65 days after the legal deadline of February 4, President Obama finally submitted his fiscal year 2014 budget. Unfortunately, the President did not use that extra time to come up with a plan that will stabilize the nation’s finances. He just cut and pasted his rejected December fiscal cliff offer to his budget. The President’s fiscal cliff offer does contain some ideas worth pursuing on their own. But, sadly, he refuses to consider them unless they are paired with other parts... Continue Reading
April 9, 2013
Budget Votes: Democrats on the Record
Over the past four years with no budget, Majority Leader Reid protected Senate Democrats from having to go on the record on difficult policy positions. That’s why it was important that the Senate passed the “No Budget, No Pay” Act earlier this year. During the budget debate, Senate Democrats were forced to choose between their constituents and President Obama on issues of taxes, health care, energy, the economy, and others. The votes demonstrated where Senators stand on... Continue Reading
April 5, 2013
March Unemployment Report
March 2013 Unemployment Rate: 7.6 percent Unemployed Americans: 11.7 million “Real” Unemployment The “real” unemployment or U-6 rate is 13.8 percent for March 2013. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 21.6 million. These are people who are unemployed (11.7... Continue Reading
March 19, 2013
The Budget: Senate Democrats vs. House Republicans
The Senate Democrats’ budget would grow government, not the economy. It includes the largest tax increase in the history of the United States, fails to address the sequester, and never balances – forgoing a healthy economy, job growth, and opportunity. Continue Reading
March 12, 2013
2013 Budget – Where We’ve Been, Where We’re Going
*post sequester Source: CBO historical data and FY 2013 baseline projections Spending, Revenue, and Deficits, FY 2007 - 2013 The Status Quo is Not an Option Even Skyrocketing Revenue Can’t Close Spending Gap As the Associated Press reported on March 12, 2013 “barring a major fix by the president and Congress, the government's finances will start to worsen again as the three major entitlement programs — Social Security, Medicare and Medicaid — become more and more... Continue Reading
March 12, 2013
Washington Democrats Deny Fiscal Facts
The President continues to provide false choices to Americans on the debt and deficit instead of giving them fact-based answers they deserve. Below are the facts on some of the biggest Washington spending items today that affect American taxpayers now. Whether the President wants solutions or campaign issues is up to him. Fiscal stability The President’s budgets have done little to restore long-term fiscal discipline. Under his last budget, the federal government would spend $46 trillion... Continue Reading