Showing posts with label unemployment benefits. Show all posts
Showing posts with label unemployment benefits. Show all posts

Monday, December 30, 2013

Political game playing in 2014. GOP issues may have diminishing returns.




Welcome to 2014 and the year of the mid term elections to the Senate and House in November.  There are enough trial balloons released  in media talk shows lately  laying out party game plans, we can get  an  idea of what to expect. 
2014 is  likely to be consumed by  mostly  posturing  and positioning. Any sound and fury  will signify very little earth shaking  legislative action between now  and 2016  since both sides have indicated they have dug in with their respective hard line  approaches   The budget deal has already been struck. Only the debt ceiling debate looms which will be mostly a vehicle for both political parties to rally their bases.
Expect the Democrats to go on the offensive to propose tackling  the widening gap between the rich and the rest with this recovery making  a mockery of a trickle down theory.  Bucked up by Pope Francis’ new emphasis on caring for “the least of these”,   they will wrap old issues such as unemployment benefits ,food stamps, and minimum wage increases in moral  tones.   Minimum wage increase has  a chance of adoption since  libertarians and some Tea Party members see it  as a way to reduce  the entitlement state. 
Expect the GOP to be  against whatever President Obama wants,  and not for much other than cutting government services, reducing   the deficit, and maybe pieces of  immigration reform to garner more Hispanic votes. Issues such as the economy, the  deficit, and Obamacare could initially be their hottest  topics. However, there is a danger in  relying on those two issues because they  may  have diminishing returns as November approaches.
 Increasing  Obamacare signups will make repeal, taking away benefits so many will have realized, an  untenable political strategy and the GOP will likely shift  to nibble, repair, and sabotage.  Rehashing their old  ideas for replacement  that  failed the effective test over the last four years is not a promising  exercise.
 To make their case for “repair”,  we can expect Republicans  to continue to dramatize the health care law’s warts  and the plight of  those who drew the short stick.  We can expect the supporters of Obamacare to return fire with anecdotes of successes and  to delay  implementation of  more minor  sore points.   The advantage of the battle of the anecdotes will go to Democrats since the numbers of those benefiting will far outweigh the disgruntled and the 85%  of the population on employer’s insurance or Medicare and Medicaid will have seen little change before November 2014. Their plans have already adjusted to the new law.
The GOP could make   the limp  economy an issue, but that, too, has diminishing returns. The economy  is growing and the forecast is that it will continue to improve. The better it gets, the less voters will care. The Democrats could  counter   that the economy grew in spite of    the  GOP’s putting brakes on it.   The government shutdown   reduced the growth rate by   3/10 of percent and the sequester  by 0.7 percent by July 2013, and resulting pain triggered the back tracking  budget  deal in December. Further weakening the GOP will be   the split in their party between the ideologically hide bound Tea Party  shutdowners and the more pro business  establishment that will erupt in the February  debt limit debate  and  again in their  primaries.
For more, visit www.mufticforumblog.blogspot.com

Wednesday, November 28, 2012

Why November went blue: Many saw life as it has become; not as it was 20 years ago.

The other day I received an email from a follower of my blog. He is 47 years old, a consulting engineer. He wrote the following:

“As a current business owner for 17 years, the last four years have been extremely difficult. Our health insurance costs have gone up over 100 percent and we are healthy people. All other costs have increased drastically and business has decreased substantially.

“I don't mind helping people in need as all people need help in some point in their life. However, where do you draw the line? It seems that when we were young, if you got laid off from a job you went out and got another job. That doesn't happen today. People will milk the system until they are forced to get a job?

What do I not understand about your views? Please enlighten me.”

Here is the gist of my answer (edited for the column):

It appears you have a disconnect with what is going on in the lives of so many unlike you or you would not ask that question.

When we were young there were other jobs to be had. The past 10 years and the Great Recession changed much. Lay-offs, downsizing and long delays in finding another job have left gaps in income and unforeseen financial struggles. Medical care has become much more high tech and expensive. The major cause of bankruptcy is medical bills and most of those going bankrupt had health insurance, but inadequate insurance that did not cover co-pays and time away from work.

Life has changed since you started your business. The middle class' income has fallen (per a PEW Research study). College is no longer $10,000 a year ... $20,000 to $40,000 is not an unusual cost for an undergrad degree and advanced degrees are astronomical.

Examples of a family I have been following closely: two 40 year old-plus adults have pre-existing conditions, one a cancer survivor, and unless they worked for an employer who provided insurance, they could not afford health insurance now. Two have master's degrees; the other has a skill in demand and a college degree, too. One is going insurance naked because he is self-employed and he cannot afford the premiums. (Fact checkers agree: Increased insurance costs are not due to Obamacare and 97 percent of small business will not have to provide insurance).

For their children, loans are the only option for college. However, before Obama readjusted the pay back schedule, they were faced with huge debts they could not afford to pay back for years. Two 40-somethings have been in and out of a job since the Bush crash. Fortunately at least one at a time had employer-provided insurance. None of them has been on unemployment; none has resorted to food stamps or welfare. All hated to be unemployed, but all have been able to hold onto even their diminished status by hard work and running up credit cards. Now all are employed, though one underemployed still waits until 2014 when Obamacare kicks in.

However, they see hope in Obamacare so they can always afford health insurance regardless of their employment status. They already are experiencing help in sending their kids to college; and an improving economic situation. None is “milking the system until they are forced to get a job.” Even those on welfare are there temporarily; welfare reform is still in effect.. Those able to work are still required to find a job. (Even at the depth of the recession, average time on food stamps and unemployment was nine months, per government figures).

It is time to see life as it has become; not as it was. Others did and that is a major reason why November went blue.

For more, visit www.mufticforumblog.blogspot.com; www.mufticforumespanol.blogspot.com
Published in the Sky Hi Daily News today.