Washington, DC – House speaker John Boehner (R-OH) still refuses to allow a vote on legislation to restore unemployment compensation to the long-term jobless. In a May 21 statement on job training, Boehner failed to address the predicament of the nearly 3 million workers who have been hit by the failure of Congress to restore Extended Unemployment Benefits.

After a protracted fight, legislation to extend unemployment benefits for the long-term jobless passed the Senate, April 7, with a handful of Republican votes. The Senate bill would extend the benefits until June 1 and provide for retroactive unemployment compensation payments. The House is unlikely to hold a vote on the proposed measure before June 1, which means the legislation will be back to square one.

Given the outrage that exists around this issue – many unemployed workers are losing their homes, cars and the ability to help their families – most expect that legislative efforts to bring back long term jobless benefits will continue after June 1.

Republicans gained effective veto power over extended unemployment benefits when the Congressional Democratic leadership did not insist on the inclusion of Extended Unemployment Compensation (EUC) in the December 2013 budget compromise.

#WashingtonDC #unemploymentInsurance #Capitalism #RepublicanAgenda #ExtendedUnemploymentCompensation #workersRights

The 14 Republican House members who participated in the May 9 Weekly Republican Address, titled “Many Bills, One Focus: Jobs,” made no mention of the bill on extended benefits for the unemployed.

Republicans gained effective veto power over extended unemployment benefits when the Congressional Democratic leadership did not insist on the inclusion of Extended Unemployment Compensation (EUC) in the December 2013 budget compromise.

Since extended benefits expired on Dec. 28, 2013, about 3 million workers have been cut off unemployment insurance.

In the aftermath of the 2007 economic meltdown, the worst crisis of capitalism since the 1930s, large-scale unemployment has been a huge problem in the U.S. and Europe.

In the U.S., California has an unemployment rate of 8.1%, Illinois 8.4%, Nevada is at 8.5% and Rhode Island has the highest unemployment rate, 8.7%.

#WashingtonDC #unemploymentInsurance #Capitalism #RepublicanAgenda #ExtendedUnemploymentCompensation #workersRights #JohnBoehner

The Democratic leadership did not insist on including a benefit extension in last December’s budget compromise, giving Republicans the power to stop legislation to restore Extended Unemployment Compensation.

About 3 million workers have been denied jobless benefits since the program was allowed to expire late last December.

House Democrats are circulating a discharge petition, which if signed by a majority of House members, would force an immediate vote on the measure. To date, the discharge petition has been signed by 193 House members. The House of Representatives has 233 Republicans and 199 Democrats.

#WashingtonDC #unemploymentInsurance #Capitalism #RepublicanAgenda #ExtendedUnemploymentCompensation #workersRights

In Congress ‘fiscally-responsible’ is often a code word for cuts to social programs that serve working and low-income people. ‘Private sector job creation’ means handouts to corporations or removing environmental regulations.

Nationally, Republicans have staked out the political terrain that blames jobless workers for high unemployment rates and poverty on the poor.

More than 2 million workers have been hit by the failure to renew Extended Unemployment Compensation (EUC) at the end of last year.

Republicans got what amounts to veto power over legislation to extend jobless benefits when the Democratic leadership failed to insist on including extended unemployment insurance into the December 2013 budget compromise.

#WashingtonDC #unemploymentInsurance #RepublicanAgenda #ExtendedUnemploymentCompensation #workersRights #EUC #JohnBoehner

Milwaukee, WI – Despite freezing cold temperatures, Milwaukee students and anti-war activists rallied in solidarity with the Venezuelan government on March 3. They stood waving flags and held up signs reading “U.S. hands off Venezuela,” and “Soy Chavista!” Standing on ice and snow, they chanted against U.S. intervention and in support of Venezuela’s President Maduro. They are joining progressive people around the world holding rallies in solidarity with the Venezuelan government.

The Milwaukee protesters support the powerful Bolivarian movement and the Venezuelan government’s progressive reforms of the past 15 years. Millions of Venezuelans are no longer living in poverty, have learned to read and write and work at new jobs. Venezuelan President Maduro’s government spends billions from state oil revenues on jobs, education, health care and housing, for the benefit of the many. Wealthy Venezuelans and some college students are upset and protesting the government.

The U.S. government is backing the right-wing protests. After 15 years of losing election after election, the wealthy reactionaries are attempting to reverse the Bolivarian Revolution and the progress made by poor people. The majority of Venezuelans reject the turn towards violence by the reactionaries.

Chance Zombor of the Freedom Road Socialist Organization fired up the crowd, “When we occupied the capitol building in Madison, we were fighting for workers’ rights against an extreme right-wing agenda. When we marched with Occupy Wall Street, we were saying that the wealthy should not control our country.” He explained about the protests, “What's happening in Venezuela is the opposite! The demonstrators there do not represent the majority of Venezuelans, who voted to support Maduro and the Bolivarian Revolution.”

Milwaukee Anti-War Committee organized the protest along with other organizations. Leaders plan to do more outreach rallies like this one in the Riverwest neighborhood to educate people about U.S. wars and intervention.

#MilwaukeeWI #Venezuela #Coup #RepublicanAgenda #antiwar #USImperialism #PSUV #NicolásMaduro

This is the second great setback for workers and unions in Michigan, coming on the heels of last year’s ramming through of so-called ‘right to work’ laws by Republicans and right-wing Governor Snyder. That same Republican-dominated legislative session overrode a fresh, legally binding referendum passed by Michigan voters that rejected Governor Snyder’s use of Emergency Financial Managers (EFM). The Republicans simply tinkered with the old law and passed a new EFM as part of an appropriations bill – which cannot be put to a referendum.

For union workers in Detroit, a city which is 84% African American, the bankruptcy is a disaster. Despite union givebacks and changes to retirement and pension plans, workers are hearing bankruptcy experts say they can expect between 10 and 20 cents on the dollar for their years of hard work and dedication. So despite years of union contracts, negotiated with local elected officials and approved under state laws, a judge will ultimately decide how much of a pension workers will get.

The American Federation of State, County, and Municipal Employees union, or AFSCME, represents about 70% of Detroit city workers, excluding categories like police and firefighters. AFSCME says their pension benefits were reduced by nearly 40% since 2012. In addition, on the job workers took a 10% pay cut in the past fiscal year to help avoid bankruptcy. Right now the average yearly pension is $19,000, but could go down to $9000 after the judge’s ruling.

There is no doubt that Detroit is a suffering city, whose manufacturing base along with hundreds of thousands of jobs largely disappeared since the 1970s. In previous decades Detroit was seen as a successful and exciting city, popularly known throughout the world for cars, sports, Motown music and good jobs. African Americans and their labor were a large part of this success. People in Detroit were proud of their city, their struggles and their accomplishments and they exercised more control over their lives than ever before.

However the big capitalists began to abandon Detroit starting in the 1970s, taking their investments and production elsewhere – to the suburbs, the South and overseas. Population began to fall, reaching less than half of what it once was, down to 701,000 today. With population falling steeply after 2000, Detroit now has a smaller tax base and the same and sometimes greater responsibilities. Corporations that did stay paid less in taxes. The good jobs dwindled. The great economic crisis that hit in 2008 left even more workers unemployed – today around 18% – hurting city income even more.

During the great economic crisis, the U.S. government spent billions to bail out banks and insurance companies, but there is no lifeline for Detroit and its workers. Instead they are being punished with bankruptcy, as if it is the only option. In the process, the politicians and judges are breaking contracts and abandoning long-held promises to workers and unions. Republican Governor Rick Snyder, instead of working with Detroit to avoid crisis, cut state funding in recent years ($66 million was cut between 2011-2012) and then took over local government by appointing an Emergency Financial Manager, sidelining the Mayor and other elected officials. The Governor has used the EFM to take over in small blue-collar towns, local school districts, and now the city of Detroit. The result of the EFM is always the same: cuts in social programs, privatization of schools and services and a refusal to negotiate with union workers, followed by their eventual replacement. In most cases thus far, the targets of EFM are government bodies run by African Americans.

Detroit faces real problems, but the rich and their politicians take advantage of the situation, and turn it into a crisis so they can seize power. Next they privatize valuable assets, like the Detroit Water and Sewage Department, at bargain basement prices. Wall Street wants to get their hands on the water works, so they can charge higher prices to homeowners and make a profit off of what should be a public utility. The EFM for Detroit, Kevyn Orr, has outside experts providing ‘valuations’ of the full range of city assets, including the parking meters and parking garages, publicly owned land like Belle Isle and other parks, the Detroit-WindsorTunnel (to Canada) and the Coleman A. Young International Airport. It may soon all be up for sale.

Even the public works of art in the Detroit Institute of Art are not safe. Emergency Manager Kevyn Orr had all the art appraised this week by Christie’s auction house. Orr’s representative, the New York investment banker Ken Buckfire, had secretly sent Christie’s appraisers to the art museum in June on an ‘informal’ basis. This past week, Buckfire was forced to cancel an ‘informal’ tour of Detroit. ‘Advisers’ were going to be shown the assets of the city that are going up for sale.

Judge Rhodes’ ruling is an attack on pensions, workers and unions across the country. It opens the door for other cities to run out on their contracts and displace unions. With Illinois pensions being called into question and some California cities facing similar funding problems, Detroit is now a test case. Republicans are leading the charge to force bankruptcy, suspend and override election results, to sell off assets and to cut and privatize social services. The Democrats are shrugging their shoulders and promising things will be different at the next election. The unions are in a life and death fight in Detroit. Workers have a lot at stake.

#DetroitMI #PoorPeoplesMovements #pensions #privatization #RepublicanAgenda #GovernorRickSnyder #antiunionBusting #workersRights

But the reality is that the Republicans will block any legalization bill, while business interests will push the passage of expanding temporary worker and employment based visas. In the meantime immigrants are facing a wave of repression, with the Obama administration having deported a record 2 million undocumented people. So the piecemeal approach is most likely to end up being more of the same for the undocumented: more deportations, no legalization and a temporary reprieve for undocumented who came as children and qualify under the Deferred Action for Childhood Arrivals (DACA) program.

So why is Obama retreating in the face of Republican opposition to immigration reform? One reason may be a partisan consideration. By making this concession, Obama is trying to keep the immigration issue in the media, hoping to benefit in next year’s election by looking ‘reasonable’ in the face of Republican opposition to immigration reform, even if this means doing little to nothing to advance any immigration reform. But another factor is that many of Obama’s policies are, in fact, moderate Republican ones. Take a look at his Affordable Care Act (Obamacare). Two of the most controversial parts of the ACA, the insurance exchanges and the individual mandate, were both Republican ideas that were embodied in the Massachusetts health care reform under Republican governor Mitt Romney.

Fundamentally, this reflects the fact that both the Democratic and the Republican parties represent the 1%, the tiny minority who own half the total wealth in the U.S. and control the large corporations that dominate the economy. While the two parties have their differences, with the Republicans wanting more repression of immigrants with militarization at the border, and the Democrats are more interested in meeting the needs of business through expanding temporary and guest worker programs, they serve the same interests.

Up to now, there have been three views of immigration reform. On the one hand, there were advocates for the undocumented, family reunification and workers, who supported legalization and stopping deportations. They also opposed more militarization of the border, more workplace enforcement, more temporary and guest workers, cuts in family reunification and diversity visas and criminalization of the undocumented and expansion of using local police and sheriffs to crack down on immigrants. More and more of these forces are uniting behind a demand that the president issue a ‘Deferred Action For All’ that expands the DACA program to all the undocumented. This would allow the undocumented to come out of the shadows and be able to work and drive legally, while laying the basis for a stronger push for legalization in the future.

Then there were the right-wing Republicans in the House of Representatives, who opposed legalization, and wanted more militarization, more workplace enforcement, more temporary, guest and employment visas and supported criminalization of the undocumented and expansion of ICE-local police programs, as seen in the SAFE act that passed a House committee on a straight party line vote. The House Republicans also support a piecemeal approach so that they can pass what they want (more repression of immigrants) and block what they don’t want (legalization).

In between was the “Comprehensive Immigration Reform” or CIR approach, as seen in the Senate immigration reform bill. CIR tried to combine the other two opposing views on immigration reform, as a way of getting Republican support. But with the overall atmosphere of repression, the Senate bill got steadily worse, with a lot more militarization of the border. The House bipartisan bill was widely known to be even worse, but it never got off the ground as the House Republicans pulled support for any bill with legalization and rallied around a piecemeal approach in opposition to CIR. With Obama’s concession to the House Republicans, the CIR approach is basically dead for now.

Backers of the CIR approach have two choices: they can go along with the President’s approach, either openly or trying to hide behind the fiction that CIR is still possible in the House. This will end up with some pro-business changes, such as more temporary worker and employment-based visas, but no legalization and the continuing deportation of record numbers of the undocumented. Or they can join with advocates of legalization and stopping the deportations by backing the Deferred Action For All or DAFA, which would both benefit the undocumented and put pressure on the House to deal with legalization.

Masao Suzuki is a supporter of the Legalization for All network and a regular contributor to Fight Back! newspaper on the economy and the immigrant rights movement.

#SanJoséCA #RepublicanAgenda #BarackObama #immigrationRights #comprehensiveImmigrationReform #AffordableCareAct #DACA

San José, CA – Today, Oct. 15, right-wing Republicans in the House of Representatives stopped the House Republican leadership from trying to pass a compromise measure to re-open the federal government and raise its debt ceiling. This marks another step towards the first U.S. debt crisis in history.

On Oct. 17, the federal government will not be able to borrow more money to pay its bills. The federal government will only be able to pay out what it collects in taxes, plus about $30 billion in cash that it has on hand. In the two weeks after that, the federal government will run short of money to pay all its bills, with the most likely date being Nov. 1, when $55 billion in Social Security benefits, Medicare payments, and military pay, benefits and retirement benefits are due.

From now through mid-November, the federal government will have to postpone payment on about $100 billion in payments if the debt ceiling is not raised. This comes to almost 8% of Gross Domestic Product (GDP, the standard measure of the size of the economy based on production of goods and services) on an annual basis, enough to throw the economy in a recession even worse than the one following the financial crisis in 2008.

Background to the crisis

The looming debt crisis has several roots. The first are the budget deficits of the federal government, where it spends more than it collects in taxes, so it has to borrow the difference by selling bonds. The federal government budget deficit ballooned to about $1.4 trillion (or $1400 billion), equal to 10% of GDP, in 2009 because the deep recession lowered tax revenues and the federal government increased spending to bail out Wall Street and stimulate the economy. Since then, a combination of higher tax revenues, spending cuts and economic growth have reduced the deficit to almost $600 billion, or about 4% of GDP in 2012, a decline of 60% in relation to the size of the economy.

The total amount of bonds that the U.S. government sells to pay for the budget deficit is the public debt, which is now $16.75 trillion ($16,750 billion). The federal government has a self-imposed limit on the public debt of $16.7 trillion, which means that the government can no longer borrow more money. The reported debt is slightly higher than the limit because the federal government has been shifting money around to avoid running out of cash for the last five months.

While there have been disputes over the debt ceiling in the past, they have been largely partisan affairs that did not come close to forcing the government to actually delay payment. But the recent rise of Tea Party Republicans means that the Republicans, especially in the House of Representatives, are controlled by right wingers who are more than willing to shut down the government and even force the government not to pay its bills in order to achieve their goal of ending Obama’s health care reform known as Obamacare.

What drives the Tea Party

Many Republican members of congress were denying the possibility of a partial shutdown of the federal government right up to the point that the government shut down. Their behavior is similar to their stance on climate change – just deny that it is happening so one doesn’t have to do anything.

Digging a little deeper, one sees that the government agencies that were most affected by the shutdown, such as the Department of Education, Housing and Urban Development (HUD), the Environmental Protection Agency (EPA) and the Department of Labor, are the programs most hated by the right wing.

There is also an extreme free-market logic among Tea Party Republicans that the government is bad for business and the economy and that a shutdown of the government will be good for business.

What is likely to happen

The world isn’t going to end on Oct. 17 if the debt ceiling is not raised. But the economic effects are already being felt, as the uncertainty of repayment of bonds after that date is causing the prices of bonds coming due soon to fall, which leads to higher interest rates. The interest rate on the shortest term U.S. bonds (called bills), which come due in 30 days, has now tripled and is higher than the interest rates on 60-day bills, which come due later.

While Democrats and the Obama administration are warning of the danger of default, which is what happens when the federal government does not repay its bonds or interest payment, it is hard to see how the government won’t give Wall Street what it wants. But there is chance that some bank or financial institution will find itself in a squeeze if the federal government doesn’t pay on time, triggering another financial crisis.

What is more likely is that the sudden drop in federal government spending will trigger a new recession. This could quickly feed upon itself in what economists call the ‘multiplier effect,’ where the individuals, businesses and institutions that aren’t being paid by the federal government then cut back their own purchases and payments, putting the economy into a downward spiral.

What a debt crisis would mean

If the House Republicans do manage to block any agreement to reopen the government and raise the debt ceiling, the self-inflicted crisis will mark another step in the decline of the U.S. as a world power. Ever since World War II, the U.S. government has been both a protector of Wall Street and big business and the head of worldwide empire of pro-U.S. governments that protect U.S. financial and business interests, backed by the U.S. military.

From an economic point of view, the end in 1971 of the post-World War II system of fixed exchange rates centered on the U.S. dollar, called Bretton Woods, was an early sign of the decline of the U.S. relative to the rising nations of Europe and Japan. This was followed by the OPEC oil boycott in 1973, and then the U.S. military defeat in Vietnam in 1975, showing the rise of the Third World.

Today the withdrawal of U.S. troops from Iraq and coming U.S. withdrawal from Afghanistan shows that the U.S., despite using hundreds of thousands of troops and spending trillions of dollars, is no longer to set up stable, pro-U.S. governments that can defend U.S. business interests. With the looming debt crisis, more and more governments around the world are losing faith in the economic power of the U.S. and the safety of U.S. government bonds. Foreign governments and investors now own more than $5.5 trillion of U.S. government bonds, and any sell-off in the bond market triggered by a debt crisis would quickly spread a financial crisis around the world.

But even if a financial crisis is avoided, a deep recession in the U.S. will also spread around the world. Europe’s economy is still in a depression with the euro-zone crisis and many economies in the Third World are slowing down already. Another worldwide recession, following so closely on the 2008-2009 so-called Great Depression, could again shake the very foundations of the world capitalist economy.

#SanJoséCA #capitalistCrisis #recession #RepublicanAgenda #TeaParty #governmentShutdown #DebtCeiling

This so-called shutdown would not actually shut down the federal government. Social Security checks would continue to go out, mail will be delivered, and other “essential” services would continue. Ironically, this includes most of the funding for the Affordable Care Act, which like Medicare and Medicaid, is considered an essential service.

But without any spending authorization for Fiscal Year 2014, which starts Oct. 1, “non-essential” federal services will shut down. This would include the closing of about 400 National Parks, monuments and museums. Social Security applications, the passport office, Small Business Administration loans, mortgage guarantees from the Federal Housing Authority (FHA), could all be stopped in their tracks. Up to 800,000 federal workers, or 40% of the federal government workforce, could be furloughed without pay.

There could be a larger economic impact of a loss of up to 1.4% of Gross Domestic Product, which measures the output of goods and services in the U.S. With the U.S. economy only growing at a 1.8% rate in the first half of this past year, this could put the economy close to tipping into another recession.

Even worse, the House Republicans are vowing to repeat this later in October when the federal government hits its borrowing limit. If the House Republicans refuse to raise the debt limit, the federal government will not have enough cash to make good on its promises to pay. If the federal government does not pay interest on the federal debt or pay for its bonds that come due, this would be a debt default that would echo through the entire world economy, as the rest of the world holds more than $5 trillion of U.S. government bonds, which could drop in price, sending interest rates up.

#SanJoséCA #RepublicanAgenda #governmentShutdown

Grand Rapids, MI – More than 200 immigrants and their supporters marched for immigrant rights on Aug. 24. Mexican, Central American and Caribbean groups and families united in Lincoln Park on the Northwest side of Grand Rapids at noon. Leaders from religious, union and community groups spoke and then led a march through the neighborhood to protest outside the Republican Party headquarters. After chanting and singing, the protesters marched the mile back to the park for a cookout and party.

Carlos Gutierrez of Saint Joseph the Worker Parish spoke through a megaphone to the crowd saying, “Millions of immigrants that live in our country did not just come here for a vacation. They came here for their very survival, because they had no other alternative. War, violence, economic and social discrimination, racism, and political repression, are driving people and families out of their countries looking for security and a better future.”

Gutierrez continued, “We have dehumanized our immigrant brothers and sisters and we have forgotten our common human bond. We forget about all the women who travel so bravely to unite their families in the U.S. The mothers who see their sons and daughters leaving home, the mothers who pray that they will return one day, worried that their children might disappear or even be killed. The wives who stay home and keep their family together while their husbands are forced to leave and make great sacrifices to find work in the U.S. Don’t forget the children who grow up without their fathers at home because the fathers had to immigrate to earn money. Remember the sadness of the families who cannot even be united at a funeral, when a loved one dies back at home and they cannot return because of the broken immigration system. There are no strangers here; we are all one family, the family of God.”

Lindsey Rosa of Peace, Hope and Love Forever, spoke about the struggles of undocumented immigrants as the number of deportations continues to rise. Rosa said, “We are coming together on the 50th anniversary March on Washington D.C. We are marching today in solidarity with tens of thousands marching from coast to coast. We are also marching in solidarity with the spirit of Martin Luther King and with all those who have fought for justice throughout history, with Gandhi and with Rigoberta Menchu, with people both known and unknown.”

Rosa ended by saying, “I want to remember today, those who are currently undocumented and living in fear, and stress and anxiety, and those who cannot be here because they have been deported. We still remember and love them. We still continue to fight so this does not continue to happen…the universal fight for justice is the only true and honorable thing a person can do with their life. I know we will continue to fight until immigration reform is realized.”

West Michigan Coalition for Immigration Reform organized the protest and march.

#GrandRapidsMI #RepublicanAgenda #immigrationRights #immigrationReform #legalizationForAll