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Global Financial and Economic Crises

Project: Global Financial and Economic Crisis 2007-Present
Open-Content project managed by matt, KJF, mtuck

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The nonpartisan Center on Budget and Policy Priorities (CBPP) finds that the Supplemental Nutrition Assistance Program (SNAP), formerly the “food stamp” program, is playing a critical role in keeping American citizens from starving during the economic recession. The program has long been reviled by Republicans and conservatives, and recently Republican presidential contender Newt Gingrich (R-GA) smeared President Obama as “the food stamp president” (see November 30 - December 2, 2011 and January 5, 2012), and falsely claimed that Obama has presided over the largest increase of Americans receiving SNAP assistance in US history (see January 17, 2012). The program benefits a disproportionately large number of children and disabled and elderly people, according to the CBPP. Since the recession began in late 2007, the CBPP says, “SNAP has responded effectively to the recession” in providing much-needed assistance to Americans, particularly since the recession has driven many families into “low-income” status. “According to the Census Bureau’s Supplemental Poverty Measure, which counts SNAP as income, SNAP kept more than 5 million people out of poverty in 2010 and lessened the severity of poverty for millions of others.” As the economy recovers and legislative provisions expire, SNAP spending will decrease, according to Congressional Budget Office (CBO) predictions. “By 2022 SNAP is expected to return nearly to pre-recession levels as a share of GDP. Over the long term, SNAP is not growing faster than the overall economy and thus is not contributing to the nation’s long-term fiscal problems.” The payment accuracy of SNAP is extraordinarily high, the CBPP claims, refuting the claims of massive fraud made by Gingrich and other opponents of the program. And, according to the CBPP, economists say that the program is “one of the most effective forms of economic stimulus,” helping grow the economy as it protects poverty-stricken families. [Center on Budget and Policy Priorities, 1/9/2012]

Entity Tags: Center on Budget and Policy Priorities, Barack Obama, US Census Bureau, Supplemental Nutrition Assistance Program, Newt Gingrich, Congressional Budget Office

Category Tags: USA, Bush Policies and Actions, Obama Policies and Actions

The nonpartisan FactCheck.org finds that recent claims by presidential candidate Newt Gingrich (R-GA) that “more people have been put on food stamps by Barack Obama than any president in American history” are wrong. In fact, far more Americans were added to the Supplemental Nutrition Assistance Program (SNAP) rolls under President George W. Bush than under Obama. Gingrich has made the claim in a number of political speeches (see November 30 - December 2, 2011 and January 5, 2012), but his reiteration of the claim during a recent Republican debate in South Carolina has drawn a great deal of media attention (see January 16, 2012). FactCheck finds: “Gingrich would have been correct to say the number now on food aid is historically high. The number stood at 46,224,722 persons as of October, the most recent month on record. And it’s also true that the number has risen sharply since Obama took office. But Gingrich goes too far to say Obama has put more on the rolls than other presidents.” Information from the US Department of Agriculture (USDA)‘s Food and Nutrition Service going back to January 2001 “show[s] that under President George W. Bush the number of recipients rose by nearly 14.7 million. Nothing before comes close to that.” Moreover, “the program has so far grown by 444,574 fewer recipients during Obama’s time in office than during Bush’s.” The trend in recent months has been for the number of food-stamp recipients to decline, another fact Gingrich fails to note. FactCheck finds that the rise in the number of Americans on food stamps—currently one out of seven—began during the second term of the Bush presidency. “In the 12 months before Obama was sworn in, 4.4 million were added to the rolls, triple the 1.4 million added in 2007,” the organization writes. “To be sure, Obama is responsible for some portion of the increase since then. The stimulus bill he signed in 2009 increased benefit levels, making the program more attractive. A family of four saw an increase of $80 per month, for example.… The stimulus also made more people eligible. Able-bodied jobless adults without dependents could get benefits for longer than three months.” Part of the reason for the higher number of recipients under Obama is the new outreach to eligible citizens by state governments, according to the USDA; many state governments have worked harder to inform eligible citizens of their right to apply for government assistance, and have reduced the amount of information that claimants must provide to receive assistance. FactCheck concludes: “We don’t argue that the program is either too large (as Gingrich does) or too small. It has certainly reached a historically high level, and may or may not grow even larger in the months to come. But the plain fact is that the growth started long before Obama took office, and participation grew more under Bush.” And it quotes the USDA’s Kevin Concannon, who recently told a Wall Street Journal reporter, “I realize Mr. Gingrich is a historian, but I’m not sure he’d get very high marks on that paper.” [USA Today, 1/17/2012] CBS News notes that the White House has called Gingrich’s claims “crazy,” and finds: “While the number of people on food stamps is indeed at a record level, that’s in part because of eligibility rules being relaxed under the administration of George W. Bush. It’s also due in part to the economic downturn that began under Mr. Bush.… [T]hat percentage increase hardly makes Obama the ‘best food stamp president in American history,’ at least when you look at the question proportionally. The percent increase in beneficiaries during Mr. Bush’s presidency was higher than it has been under Mr. Obama: The number of beneficiaries went from 17.3 million in 2001 to 28.2 million in 2008—an increase of 63 percent in years that are mostly considered non-recessionary.” [CBS News, 1/17/2012] US News and World Report agrees with FactCheck, finding that “SNAP participation has been on the rise since well before President Obama took office. Nearly 17.2 million people in FY 2000 participated in the program, a figure that increased by nearly 64 percent by 2008.” [US News and World Report, 1/17/2012] The Associated Press accuses Gingrich of distorting the facts and notes: “It’s gotten easier to qualify for food stamps in the past decade but that is because of measures taken before Obama became president. It’s true that the number of people on food stamps is now at a record level. That’s due mainly to the ailing economy, which Republicans blame on Obama, as well as rising food costs. The worst downturn since the Great Depression wiped out 8.7 million jobs, pushed the unemployment rate to a peak of 10 percent in October 2009, and increased poverty.” [Associated Press, 1/17/2012] The nonpartisan Center on Budget and Policy Priorities has found that SNAP is a critical element in keeping poverty-stricken Americans, particularly children and the elderly, from starving during the economic recession (see January 9, 2012).

Entity Tags: Kevin Concannon, CBS News, Barack Obama, Associated Press, Center on Budget and Policy Priorities, George W. Bush, US News and World Report, Obama administration, FactCheck (.org), US Department of Agriculture, Supplemental Nutrition Assistance Program, Newt Gingrich

Timeline Tags: Domestic Propaganda, 2012 Elections

Category Tags: USA, Bush Policies and Actions, Obama Policies and Actions

Shadrack McGill.Shadrack McGill. [Source: Huntsville Times]State Senator Shadrack McGill (R-AL) tells listeners at a prayer breakfast in Fort Payne, Alabama, that state legislators such as himself deserve pay raises, but raising schoolteachers’ pay would lead to less-qualified teachers in the classrooms and violate a “Biblical principle.” Alabama legislators were given a 62 percent raise in 2007, and McGill says the raise discourages corruption among lawmakers. The previous low salaries “played into the corruption, guys, big time,” he says. “You had your higher-ranking legislators that were connected with the lobbyists making up in the millions of dollars. They weren’t worried about that $30,000 paid salary they were getting.” By paying lawmakers more up front, he says, they are less susceptible to taking bribes: “He needs to make enough that he can say no, in regards to temptation.” However, if teachers were given pay raises, then people who are not “called” to teach would begin joining the profession, he says. “Teachers need to make the money that they need to make. There needs to be a balance there. If you double what you’re paying education, you know what’s going to happen? I’ve heard the comment many times, ‘Well, the quality of education’s going to go up.’ That’s never proven to happen, guys. It’s a Biblical principle. If you double a teacher’s pay scale, you’ll attract people who aren’t called to teach. To go in and raise someone’s child for eight hours a day, or many people’s children for eight hours a day, requires a calling. It better be a calling in your life. I know I wouldn’t want to do it, OK? And these teachers that are called to teach, regardless of the pay scale, they would teach. It’s just in them to do. It’s the ability that God give ‘em. And there are also some teachers, it wouldn’t matter how much you would pay them, they would still perform to the same capacity. If you don’t keep that in balance, you’re going to attract people who are not called, who don’t need to be teaching our children. So, everything has a balance.” In 2010, McGill introduced a bill in the Alabama Senate that would tie legislators’ pay to teachers’ pay, requiring the state to give raises to legislators if it gave teachers raises. He claimed, falsely, that Alabama teachers’ salaries were the fourth highest in the nation. Some Alabama Republicans are backing a bill that would give a 2.5 percent raise to teachers with less than nine years’ experience. Representative Craig Ford (D-Gadsden) says the small raise unfairly excludes veteran teachers, and the entire controversy surrounding teachers’ and legislators’ raises is “one of the most absurd things… the Republican supermajority ha[s] ever tried to pull.” [DeKalb County Times-Journal, 1/31/2012; Huffington Post, 2/1/2012] Currently, part-time legislators in Alabama such as McGill make more than full-time teachers with master’s degrees and 15 years of experience. [Think Progress, 2/1/2012] After the national media picks up on McGill’s comments, WAAY-TV airs an interview with McGill taped earlier in the week where he told a reporter he did not believe in the separation of church and state (see 1782-1786). According to a WAAY report, both the television station’s commentators and editorial writers and commentators around the nation “raked [McGill] over the coals” for his comments. McGill tells a WAAY reporter: “Some things got taken out of context. I’m not hearing any negative feedback out of those who were there.” The audience at the prayer breakfast was very supportive of his stance, he says. “The point that I was trying to make in the speech is simply that.… Things ought to be in balance. I believe God made everything to be in balance. He weighed the Earth and the valley and the mountains and the hills on a scale to keep them in balance because he knew he was going to be spinning it real fast, so that’s the [g]ist of it.… Legislators pay ought to be in balance. They don’t need to make too much, they don’t need to make too little, both lead to corruption. Likewise, I think with teachers salaries, things need to be balanced on their education, based on the performance, class size, etc. Work load.… But by no means was I insinuating that a teacher should make less.” McGill says he hopes that after the economy turns around, Alabama teachers can get raises. McGill says he is learning that legislators such as himself are constantly being pursued by those who want to “turn” an innocent statement “into a dagger and stab you with it.” He says that he cannot understand how those who gave him “negative feedback” on his comments can call themselves Christians. [WAAY-TV, 2/2/2012]

Entity Tags: Alabama State Senate, Shadrack McGill, WAAY-TV, Craig Ford

Category Tags: US Labor Issues

President Obama speaks on the topic of clean energy in front of the Copper Mountain Solar Project in Boulder City, Nevada, in March 2012.President Obama speaks on the topic of clean energy in front of the Copper Mountain Solar Project in Boulder City, Nevada, in March 2012. [Source: CleanTechnica (.org)]An analysis by Reuters claims that the $90 billion investment made by the federal government to generate jobs in the field of clean energy (see February 2009) has not produced as many jobs as initially touted. In March 2012, President Obama spoke in front of the Copper Mountain Solar Project in Boulder City, Nevada, which uses 1 million solar panels to power 17,000 homes. The facility only employs 10 people. The green initiative has put people to work retrofitting over a million homes to lower heating and cooling costs, and energy generation from solar and wind sources has nearly doubled since 2008. But some say the program has not created enough jobs. Critics say the program was expected to lower the unemployment rate, currently hovering above 8 percent, and say it has not done so. Supporters say the administration promised too much in the short term and fear a backlash that might undermine support for clean-energy policies across the board. Clean energy specialist Mark Muro of the Brookings Institution says, “All of this stuff is extraordinarily worthy for driving long-term economic transformation but extremely inappropriate to sell as a short-term job program.” Janet Bluman, head of the Foundation for an Independent Tomorrow, says, “From my perspective it makes more sense for us to arm our clients with the basic skills, rather than saying, ‘By golly, you will do something in the green economy or you won’t work.’” Bluman claims that her organization, which trains people for jobs in the Las Vegas area, has seen positions in trucking and accounting go unfilled because training money had been earmarked for green efforts. The federal program earmarked some $500 million for job training, and has employed some 20,000 people, far short of its stated goal. Republicans say the clean-energy program is merely a way for the Obama administration to give money to Obama’s friends (see October 15, 2012). GOP presidential candidate Mitt Romney has claimed, “[Obama] handed out tens of billions of dollars to green energy companies, including his friends and campaign contributors at companies like Solyndra that are now bankrupt.” Romney and other Republicans have not advanced proof of their allegations. Supporters say that in the long term, clean energy will “create a bounty of stable, middle-class jobs and fill the gap left by manufacturing work that has moved overseas,” as Reuters reports. White House officials say that there is more to the clean energy program than creating jobs. “We have a record of success that has created tens of thousands of jobs and is ensuring that America is not ceding these industries to countries like China,” White House spokesman Clark Stevens says. “Thanks to the investments we’ve made, these industries will continue to grow, along with the jobs they create.” Senator Charles Grassley (R-IA), an opponent of the program, says: “The green jobs-training program just didn’t work. It was a poor investment of tax dollars.” Darren Devine of the College of Southern Nevada says: “Will it add a significant number of jobs, enough to make a real dent in our unemployment? No, I don’t see that happening.” What it will do is help the country reduce its energy consumption, lower the amount of carbon dioxide being pumped into the atmosphere, and help create jobs in the clean-energy and other fields, such as health care, education, and technology. [Reuters, 4/13/2012]

Entity Tags: Janet Bluman, Barack Obama, Charles Grassley, Darren Devine, Obama administration, Copper Mountain Solar Project, Reuters, Willard Mitt Romney, Mark Muro

Timeline Tags: US Solar Industry

Category Tags: Obama Policies and Actions

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