Posts tagged ‘Obama’

July 20, 2013

A More Perfect Union…

America,  Land of the Free, Home of The Brave.  A country that the world looks to for inspiration, hope, and protection.  And as the world watched us last weekend, it saw a nation divided behind the Trayvon Martin/George Zimmerman trial verdict.  They saw a country that touts itself as having the best legal system in the world, seem to return a judgement that was on it’s face “unexplainable”. We are a nation of immigrants.  No individual race is from here, no individual culture can claim it, and in reality, that is our greatest strength. It’s what separates us from every other country in the world.But as we faltered last weekend, we cannot forget the essence that makes a nation of many cultures, One Nation.  We are Americans.  We need not look to each other with hatred or jealousy, suspicion or mistrust, because to do so would dishonor those who have fought, died,and struggled to make us a nation.  We cannot afford to be divide, because our division would spell the death of the fiber that goes through every American regardless of class, culture, religion, or race that makes us united. A few years ago, Senator Barack Obama, made a speech concerning race in America.  As we as a nation consider the Trayvon Martin/George Zimmerman trial verdict, let us consider what our President had to say regarding race relations in America, and place it in context to what our nation is suffering from today. (video and fill transcript below)

Transcript of President Obama’s “A More Perfect Union” speech:

“We the people, in order to form a more perfect union …” — 221 years ago, in a hall that still stands across the street, a group of men gathered and, with these simple words, launched America’s improbable experiment in democracy. Farmers and scholars, statesmen and patriots who had traveled across an ocean to escape tyranny and persecution finally made real their declaration of independence at a Philadelphia convention that lasted through the spring of 1787.

The document they produced was eventually signed but ultimately unfinished. It was stained by this nation’s original sin of slavery, a question that divided the colonies and brought the convention to a stalemate until the founders chose to allow the slave trade to continue for at least 20 more years, and to leave any final resolution to future generations.

Of course, the answer to the slavery question was already embedded within our Constitution — a Constitution that had at its very core the ideal of equal citizenship under the law; a Constitution that promised its people liberty and justice and a union that could be and should be perfected over time.

And yet words on a parchment would not be enough to deliver slaves from bondage, or provide men and women of every color and creed their full rights and obligations as citizens of the United States. What would be needed were Americans in successive generations who were willing to do their part — through protests and struggles, on the streets and in the courts, through a civil war and civil disobedience, and always at great risk — to narrow that gap between the promise of our ideals and the reality of their time.

This was one of the tasks we set forth at the beginning of this presidential campaign — to continue the long march of those who came before us, a march for a more just, more equal, more free, more caring and more prosperous America. I chose to run for president at this moment in history because I believe deeply that we cannot solve the challenges of our time unless we solve them together, unless we perfect our union by understanding that we may have different stories, but we hold common hopes; that we may not look the same and we may not have come from the same place, but we all want to move in the same direction — toward a better future for our children and our grandchildren.

This belief comes from my unyielding faith in the decency and generosity of the American people. But it also comes from my own story.

I am the son of a black man from Kenya and a white woman from Kansas. I was raised with the help of a white grandfather who survived a Depression to serve in Patton’s Army during World War II and a white grandmother who worked on a bomber assembly line at Fort Leavenworth while he was overseas. I’ve gone to some of the best schools in America and lived in one of the world’s poorest nations. I am married to a black American who carries within her the blood of slaves and slaveowners — an inheritance we pass on to our two precious daughters. I have brothers, sisters, nieces, nephews, uncles and cousins of every race and every hue, scattered across three continents, and for as long as I live, I will never forget that in no other country on Earth is my story even possible.

It’s a story that hasn’t made me the most conventional of candidates. But it is a story that has seared into my genetic makeup the idea that this nation is more than the sum of its parts — that out of many, we are truly one.

Throughout the first year of this campaign, against all predictions to the contrary, we saw how hungry the American people were for this message of unity. Despite the temptation to view my candidacy through a purely racial lens, we won commanding victories in states with some of the whitest populations in the country. In South Carolina, where the Confederate flag still flies, we built a powerful coalition of African-Americans and white Americans.

This is not to say that race has not been an issue in this campaign. At various stages in the campaign, some commentators have deemed me either “too black” or “not black enough.” We saw racial tensions bubble to the surface during the week before the South Carolina primary. The press has scoured every single exit poll for the latest evidence of racial polarization, not just in terms of white and black, but black and brown as well.

And yet, it has only been in the last couple of weeks that the discussion of race in this campaign has taken a particularly divisive turn.

On one end of the spectrum, we’ve heard the implication that my candidacy is somehow an exercise in affirmative action; that it’s based solely on the desire of wide-eyed liberals to purchase racial reconciliation on the cheap. On the other end, we’ve heard my former pastor, Jeremiah Wright, use incendiary language to express views that have the potential not only to widen the racial divide, but views that denigrate both the greatness and the goodness of our nation, and that rightly offend white and black alike.

I have already condemned, in unequivocal terms, the statements of Reverend Wright that have caused such controversy and, in some cases, pain. For some, nagging questions remain. Did I know him to be an occasionally fierce critic of American domestic and foreign policy? Of course. Did I ever hear him make remarks that could be considered controversial while I sat in the church? Yes. Did I strongly disagree with many of his political views? Absolutely — just as I’m sure many of you have heard remarks from your pastors, priests, or rabbis with which you strongly disagreed.

But the remarks that have caused this recent firestorm weren’t simply controversial. They weren’t simply a religious leader’s efforts to speak out against perceived injustice. Instead, they expressed a profoundly distorted view of this country — a view that sees white racism as endemic, and that elevates what is wrong with America above all that we know is right with America; a view that sees the conflicts in the Middle East as rooted primarily in the actions of stalwart allies like Israel, instead of emanating from the perverse and hateful ideologies of radical Islam.

As such, Reverend Wright’s comments were not only wrong but divisive, divisive at a time when we need unity; racially charged at a time when we need to come together to solve a set of monumental problems — two wars, a terrorist threat, a falling economy, a chronic health care crisis and potentially devastating climate change — problems that are neither black or white or Latino or Asian, but rather problems that confront us all.

Given my background, my politics, and my professed values and ideals, there will no doubt be those for whom my statements of condemnation are not enough. Why associate myself with Reverend Wright in the first place, they may ask? Why not join another church? And I confess that if all that I knew of Reverend Wright were the snippets of those sermons that have run in an endless loop on the television sets and YouTube, or if Trinity United Church of Christ conformed to the caricatures being peddled by some commentators, there is no doubt that I would react in much the same way.

But the truth is, that isn’t all that I know of the man. The man I met more than 20 years ago is a man who helped introduce me to my Christian faith, a man who spoke to me about our obligations to love one another, to care for the sick and lift up the poor. He is a man who served his country as a United States Marine; who has studied and lectured at some of the finest universities and seminaries in the country, and who for over 30 years has led a church that serves the community by doing God’s work here on Earth — by housing the homeless, ministering to the needy, providing day care services and scholarships and prison ministries, and reaching out to those suffering from HIV/AIDS.

In my first book, Dreams From My Father, I describe the experience of my first service at Trinity:

“People began to shout, to rise from their seats and clap and cry out, a forceful wind carrying the reverend’s voice up into the rafters. And in that single note — hope! — I heard something else: At the foot of that cross, inside the thousands of churches across the city, I imagined the stories of ordinary black people merging with the stories of David and Goliath, Moses and Pharaoh, the Christians in the lion’s den, Ezekiel’s field of dry bones. Those stories — of survival and freedom and hope — became our stories, my story. The blood that spilled was our blood, the tears our tears, until this black church, on this bright day, seemed once more a vessel carrying the story of a people into future generations and into a larger world. Our trials and triumphs became at once unique and universal, black and more than black. In chronicling our journey, the stories and songs gave us a meaning to reclaim memories that we didn’t need to feel shame about — memories that all people might study and cherish, and with which we could start to rebuild.”

That has been my experience at Trinity. Like other predominantly black churches across the country, Trinity embodies the black community in its entirety — the doctor and the welfare mom, the model student and the former gang-banger. Like other black churches, Trinity’s services are full of raucous laughter and sometimes bawdy humor. They are full of dancing and clapping and screaming and shouting that may seem jarring to the untrained ear. The church contains in full the kindness and cruelty, the fierce intelligence and the shocking ignorance, the struggles and successes, the love and, yes, the bitterness and biases that make up the black experience in America.

And this helps explain, perhaps, my relationship with Reverend Wright. As imperfect as he may be, he has been like family to me. He strengthened my faith, officiated my wedding, and baptized my children. Not once in my conversations with him have I heard him talk about any ethnic group in derogatory terms, or treat whites with whom he interacted with anything but courtesy and respect. He contains within him the contradictions — the good and the bad — of the community that he has served diligently for so many years.

I can no more disown him than I can disown the black community. I can no more disown him than I can disown my white grandmother — a woman who helped raise me, a woman who sacrificed again and again for me, a woman who loves me as much as she loves anything in this world, but a woman who once confessed her fear of black men who passed her by on the street, and who on more than one occasion has uttered racial or ethnic stereotypes that made me cringe.

These people are a part of me. And they are part of America, this country that I love.

Some will see this as an attempt to justify or excuse comments that are simply inexcusable. I can assure you it is not. I suppose the politically safe thing to do would be to move on from this episode and just hope that it fades into the woodwork. We can dismiss Reverend Wright as a crank or a demagogue, just as some have dismissed Geraldine Ferraro, in the aftermath of her recent statements, as harboring some deep-seated bias.

But race is an issue that I believe this nation cannot afford to ignore right now. We would be making the same mistake that Reverend Wright made in his offending sermons about America — to simplify and stereotype and amplify the negative to the point that it distorts reality.

The fact is that the comments that have been made and the issues that have surfaced over the last few weeks reflect the complexities of race in this country that we’ve never really worked through — a part of our union that we have not yet made perfect. And if we walk away now, if we simply retreat into our respective corners, we will never be able to come together and solve challenges like health care or education or the need to find good jobs for every American.

Understanding this reality requires a reminder of how we arrived at this point. As William Faulkner once wrote, “The past isn’t dead and buried. In fact, it isn’t even past.” We do not need to recite here the history of racial injustice in this country. But we do need to remind ourselves that so many of the disparities that exist between the African-American community and the larger American community today can be traced directly to inequalities passed on from an earlier generation that suffered under the brutal legacy of slavery and Jim Crow.

Segregated schools were and are inferior schools; we still haven’t fixed them, 50 years after Brown v. Board of Education. And the inferior education they provided, then and now, helps explain the pervasive achievement gap between today’s black and white students.

Legalized discrimination — where blacks were prevented, often through violence, from owning property, or loans were not granted to African-American business owners, or black homeowners could not access FHA mortgages, or blacks were excluded from unions or the police force or the fire department — meant that black families could not amass any meaningful wealth to bequeath to future generations. That history helps explain the wealth and income gap between blacks and whites, and the concentrated pockets of poverty that persist in so many of today’s urban and rural communities.

A lack of economic opportunity among black men, and the shame and frustration that came from not being able to provide for one’s family contributed to the erosion of black families — a problem that welfare policies for many years may have worsened. And the lack of basic services in so many urban black neighborhoods — parks for kids to play in, police walking the beat, regular garbage pickup, building code enforcement — all helped create a cycle of violence, blight and neglect that continues to haunt us.

This is the reality in which Reverend Wright and other African-Americans of his generation grew up. They came of age in the late ’50s and early ’60s, a time when segregation was still the law of the land and opportunity was systematically constricted. What’s remarkable is not how many failed in the face of discrimination, but how many men and women overcame the odds; how many were able to make a way out of no way, for those like me who would come after them.

For all those who scratched and clawed their way to get a piece of the American Dream, there were many who didn’t make it — those who were ultimately defeated, in one way or another, by discrimination. That legacy of defeat was passed on to future generations — those young men and, increasingly, young women who we see standing on street corners or languishing in our prisons, without hope or prospects for the future. Even for those blacks who did make it, questions of race and racism continue to define their worldview in fundamental ways. For the men and women of Reverend Wright’s generation, the memories of humiliation and doubt and fear have not gone away; nor has the anger and the bitterness of those years. That anger may not get expressed in public, in front of white co-workers or white friends. But it does find voice in the barbershop or the beauty shop or around the kitchen table. At times, that anger is exploited by politicians, to gin up votes along racial lines, or to make up for a politician’s own failings.

And occasionally it finds voice in the church on Sunday morning, in the pulpit and in the pews. The fact that so many people are surprised to hear that anger in some of Reverend Wright’s sermons simply reminds us of the old truism that the most segregated hour of American life occurs on Sunday morning. That anger is not always productive; indeed, all too often it distracts attention from solving real problems; it keeps us from squarely facing our own complicity within the African-American community in our condition, and prevents the African-American community from forging the alliances it needs to bring about real change. But the anger is real; it is powerful. And to simply wish it away, to condemn it without understanding its roots, only serves to widen the chasm of misunderstanding that exists between the races.

In fact, a similar anger exists within segments of the white community. Most working- and middle-class white Americans don’t feel that they have been particularly privileged by their race. Their experience is the immigrant experience — as far as they’re concerned, no one handed them anything. They built it from scratch. They’ve worked hard all their lives, many times only to see their jobs shipped overseas or their pensions dumped after a lifetime of labor. They are anxious about their futures, and they feel their dreams slipping away. And in an era of stagnant wages and global competition, opportunity comes to be seen as a zero sum game, in which your dreams come at my expense. So when they are told to bus their children to a school across town; when they hear an African-American is getting an advantage in landing a good job or a spot in a good college because of an injustice that they themselves never committed; when they’re told that their fears about crime in urban neighborhoods are somehow prejudiced, resentment builds over time.

Like the anger within the black community, these resentments aren’t always expressed in polite company. But they have helped shape the political landscape for at least a generation. Anger over welfare and affirmative action helped forge the Reagan Coalition. Politicians routinely exploited fears of crime for their own electoral ends. Talk show hosts and conservative commentators built entire careers unmasking bogus claims of racism while dismissing legitimate discussions of racial injustice and inequality as mere political correctness or reverse racism.

Just as black anger often proved counterproductive, so have these white resentments distracted attention from the real culprits of the middle class squeeze — a corporate culture rife with inside dealing, questionable accounting practices and short-term greed; a Washington dominated by lobbyists and special interests; economic policies that favor the few over the many. And yet, to wish away the resentments of white Americans, to label them as misguided or even racist, without recognizing they are grounded in legitimate concerns — this too widens the racial divide and blocks the path to understanding.

This is where we are right now. It’s a racial stalemate we’ve been stuck in for years. Contrary to the claims of some of my critics, black and white, I have never been so naïve as to believe that we can get beyond our racial divisions in a single election cycle, or with a single candidacy — particularly a candidacy as imperfect as my own.

But I have asserted a firm conviction — a conviction rooted in my faith in God and my faith in the American people — that, working together, we can move beyond some of our old racial wounds, and that in fact we have no choice if we are to continue on the path of a more perfect union.

For the African-American community, that path means embracing the burdens of our past without becoming victims of our past. It means continuing to insist on a full measure of justice in every aspect of American life. But it also means binding our particular grievances — for better health care and better schools and better jobs — to the larger aspirations of all Americans: the white woman struggling to break the glass ceiling, the white man who has been laid off, the immigrant trying to feed his family. And it means taking full responsibility for our own lives — by demanding more from our fathers, and spending more time with our children, and reading to them, and teaching them that while they may face challenges and discrimination in their own lives, they must never succumb to despair or cynicism; they must always believe that they can write their own destiny.

Ironically, this quintessentially American — and yes, conservative — notion of self-help found frequent expression in Reverend Wright’s sermons. But what my former pastor too often failed to understand is that embarking on a program of self-help also requires a belief that society can change.

The profound mistake of Reverend Wright’s sermons is not that he spoke about racism in our society. It’s that he spoke as if our society was static; as if no progress had been made; as if this country — a country that has made it possible for one of his own members to run for the highest office in the land and build a coalition of white and black, Latino and Asian, rich and poor, young and old — is still irrevocably bound to a tragic past. But what we know — what we have seen — is that America can change. That is the true genius of this nation. What we have already achieved gives us hope — the audacity to hope — for what we can and must achieve tomorrow.

In the white community, the path to a more perfect union means acknowledging that what ails the African-American community does not just exist in the minds of black people; that the legacy of discrimination — and current incidents of discrimination, while less overt than in the past — are real and must be addressed, not just with words, but with deeds, by investing in our schools and our communities; by enforcing our civil rights laws and ensuring fairness in our criminal justice system; by providing this generation with ladders of opportunity that were unavailable for previous generations. It requires all Americans to realize that your dreams do not have to come at the expense of my dreams; that investing in the health, welfare and education of black and brown and white children will ultimately help all of America prosper.

In the end, then, what is called for is nothing more and nothing less than what all the world’s great religions demand — that we do unto others as we would have them do unto us. Let us be our brother’s keeper, scripture tells us. Let us be our sister’s keeper. Let us find that common stake we all have in one another, and let our politics reflect that spirit as well.

For we have a choice in this country. We can accept a politics that breeds division and conflict and cynicism. We can tackle race only as spectacle — as we did in the O.J. trial — or in the wake of tragedy — as we did in the aftermath of Katrina — or as fodder for the nightly news. We can play Reverend Wright’s sermons on every channel, every day and talk about them from now until the election, and make the only question in this campaign whether or not the American people think that I somehow believe or sympathize with his most offensive words. We can pounce on some gaffe by a Hillary supporter as evidence that she’s playing the race card, or we can speculate on whether white men will all flock to John McCain in the general election regardless of his policies.

We can do that.

But if we do, I can tell you that in the next election, we’ll be talking about some other distraction. And then another one. And then another one. And nothing will change.

That is one option. Or, at this moment, in this election, we can come together and say, “Not this time.” This time, we want to talk about the crumbling schools that are stealing the future of black children and white children and Asian children and Hispanic children and Native American children. This time, we want to reject the cynicism that tells us that these kids can’t learn; that those kids who don’t look like us are somebody else’s problem. The children of America are not those kids, they are our kids, and we will not let them fall behind in a 21st century economy. Not this time.

This time we want to talk about how the lines in the emergency room are filled with whites and blacks and Hispanics who do not have health care, who don’t have the power on their own to overcome the special interests in Washington, but who can take them on if we do it together.

This time, we want to talk about the shuttered mills that once provided a decent life for men and women of every race, and the homes for sale that once belonged to Americans from every religion, every region, every walk of life. This time, we want to talk about the fact that the real problem is not that someone who doesn’t look like you might take your job; it’s that the corporation you work for will ship it overseas for nothing more than a profit.

This time, we want to talk about the men and women of every color and creed who serve together and fight together and bleed together under the same proud flag. We want to talk about how to bring them home from a war that should have never been authorized and should have never been waged. And we want to talk about how we’ll show our patriotism by caring for them and their families, and giving them the benefits that they have earned.

I would not be running for President if I didn’t believe with all my heart that this is what the vast majority of Americans want for this country. This union may never be perfect, but generation after generation has shown that it can always be perfected. And today, whenever I find myself feeling doubtful or cynical about this possibility, what gives me the most hope is the next generation — the young people whose attitudes and beliefs and openness to change have already made history in this election.

There is one story in particularly that I’d like to leave you with today — a story I told when I had the great honor of speaking on Dr. King’s birthday at his home church, Ebenezer Baptist, in Atlanta.

There is a young, 23-year-old white woman named Ashley Baia who organized for our campaign in Florence, S.C. She had been working to organize a mostly African-American community since the beginning of this campaign, and one day she was at a roundtable discussion where everyone went around telling their story and why they were there.

And Ashley said that when she was 9 years old, her mother got cancer. And because she had to miss days of work, she was let go and lost her health care. They had to file for bankruptcy, and that’s when Ashley decided that she had to do something to help her mom.

She knew that food was one of their most expensive costs, and so Ashley convinced her mother that what she really liked and really wanted to eat more than anything else was mustard and relish sandwiches — because that was the cheapest way to eat. That’s the mind of a 9-year-old.

She did this for a year until her mom got better. So she told everyone at the roundtable that the reason she joined our campaign was so that she could help the millions of other children in the country who want and need to help their parents, too.

Now, Ashley might have made a different choice. Perhaps somebody told her along the way that the source of her mother’s problems were blacks who were on welfare and too lazy to work, or Hispanics who were coming into the country illegally. But she didn’t. She sought out allies in her fight against injustice.

Anyway, Ashley finishes her story and then goes around the room and asks everyone else why they’re supporting the campaign. They all have different stories and different reasons. Many bring up a specific issue. And finally they come to this elderly black man who’s been sitting there quietly the entire time. And Ashley asks him why he’s there. And he does not bring up a specific issue. He does not say health care or the economy. He does not say education or the war. He does not say that he was there because of Barack Obama. He simply says to everyone in the room, “I am here because of Ashley.”

“I’m here because of Ashley.” By itself, that single moment of recognition between that young white girl and that old black man is not enough. It is not enough to give health care to the sick, or jobs to the jobless, or education to our children.

But it is where we start. It is where our union grows stronger. And as so many generations have come to realize over the course of the 221 years since a band of patriots signed that document right here in Philadelphia, that is where the perfection begins.

March 3, 2013

Poll: Americans Agree with Democrats on Almost Every Issue

A new Pew Research poll shows that Americans mostly agree with Democrats on a majority of political issues, and meanwhile President Obama’s approval rating is climbing, while Republican approval is dropping.

December 28, 2012

The Never-ending Fiscal Cliff Negotiations for Dummies (Updated)

The Never-ending Fiscal Cliff negotiations

President Obama has cut his trip to Hawaii short to meet with congressional leaders in hopes of a last-minute effort to avoid the upcoming “fiscal cliff”.

The Fiscal Cliff Explained

“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, a rollback of the “Bush tax cuts” from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. According to Barron’s, over 1,000 government programs – including the defense budget and Medicare are in line for “deep, automatic cuts.”

In dealing with the fiscal cliff, U.S. lawmakers have a choice among three options, none of which are particularly attractive:

  • They can let the current policy scheduled for the beginning of 2013 – which features a number of tax increases and spending cuts that are expected to weigh heavily on growth and possibly drive the economy back into a recession – go into effect. The plus side: the deficit, as a percentage of GDP, would be cut in half.
  • They can cancel some or all of the scheduled tax increases and spending cuts, which would add to the deficit and increase the odds that the United States could face a crisis similar to that which is occurring in Europe. The flip side of this, of course, is that the United States’ debt will continue to grow.
  • They could take a middle course, opting for an approach that would address the budget issues to a limited extent, but that would have a more modest impact on growth.

Can a Compromise be Reached?

The oncoming fiscal cliff is a concern for investors since the highly partisan nature of the current political environment could make a compromise difficult to reach. This problem isn’t new, after all: lawmakers have had over a year to address this issue, but Congress – mired in political gridlock – has largely put off the search for a solution rather than seeking to solve the problem directly. In general, Republicans want to cut spending and avoid raising taxes, while Democrats are looking for a combination of spending cuts and tax increases. Although both parties want to avoid the fiscal cliff, compromise is seen as being difficult to achieve – particularly in an election year. Currently, it appears that a meaningful deal won’t be reached until after the December 31 deadline.

The most likely outcome is another set of stop-gap measures that would delay a more permanent policy change. Still, the non-partisan Congressional Budget Office (CBO) estimates that if Congress takes the middle ground – extending the Bush-era tax cuts but cancelling the automatic spending cuts – the result, in the short term, would be modest growth but no major economic hit.

Possible Effects of the Fiscal Cliff

If the current laws slated for 2013 went into effect permanently, the impact on the economy would be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion, the CBO also estimates that the policy would reduce gross domestic product (GDP) by four percentage points in 2013, sending the economy into a recession (i.e., negative growth). At the same time, it predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs.

A Wall St. Journal article from May 16, 2012 estimates the following impact in dollar terms: “In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sunsetting of the Bush tax cuts; $125 billion from the expiration of the Obama payroll-tax holiday; $40 billion from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts. In all, the tax increases and spending cuts make up about 3.5% of GDP, with the Bush tax cuts making up about half of that, according to the J.P. Morgan report.” Amid an already-fragile recovery and elevated unemployment, the economy is not in a position to avoid this type of shock.

The Term “Cliff” is Misleading

It’s important to keep in mind that while the term “cliff” indicates an immediate disaster at the beginning of 2013, this isn’t a binary (two-outcome) event that will end in either a full solution or a total failure on December 31. There are two important reasons why this is the case:

1) If all of the laws went into effect as scheduled and stayed in effect, the result would undoubtedly be a return to recession. However, Congress continues to work toward a deal that will alleviate the effects in some form.

2) Even if the deal does not occur before December 31, as appears likely, Congress can – and almost certainly will – act to change the scheduled laws retroactively to January 1 after the deadline.

At the same time, even a “solution” isn’t necessarily positive, since a compromise will likely involve higher taxes or reduced spending in some form – both of which would help reduce the debt, but would be negative for economic growth.

With this as background, it’s important to keep in mind that the concept of “going over the cliff” is largely a media creation, since even a failure to reach a deal by December 31 doesn’t mean that a recession and financial market crash would necessarily occur.

(Source – About.com)

March 3, 2012

Obama The ‘Anti-Christ’: Why The Mindless Hate of President Obama By Republicans?

Republicans and the Art of Racism… President Obama is Dealing With an Aggressive Covert and Fascist Operation in Congress, in The Media and On The Streets.

February 24, 2012

Fact check: The Conservatives Infanticide attack on President Obama

Two GOP presidential hopefuls claim President Obama supports infanticide and say the media never covered the issue.

February 20, 2012

Santorum Spokesperson:”Obama has Radically Islamic Policies” – WTF?

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Well, No Surprise here. Alice Stewart, a spokesperson for Rick Santorum‘s presidential campaign, let the cat out of the bag by accusing President Obama of having “Radical Islamic Policies” in regard to Energy.  It just shows once again where Santorum and his supporters are really at….firmly in The Lunatic Fringe!

November 22, 2011

Despite Super Committee setback President Obama still hopes Republicans will eventually do the right thing

Despite In an interview today, President Obama says to Al Sharpton: ‘My Religious Faith‘ Makes Me Believe Republicans Will Agree to Raise Taxes

 
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