Category Archives: economic issues

Our Position on the Debt Ceiling Negotiations

As the President and Congress work to negotiate a deal to raise the federal debt ceiling, Republicans are demanding huge funding cuts and radical changes to vital social service programs. Greater NYC for Change opposes these cuts, and urges all lawmakers to reject any deficit reduction proposal which will make harmful benefit reductions to Social Security, Medicare, and Medicaid programs. Specifically:

  • Now is not the time to cut the deficit. First, put people back to work.
  • We need Medicare, Medicaid AND Social Security. Do not cut or “adjust” them now, while millions are out of work.
  • Social Security did not cause the deficit, and it should not be cut to reduce a deficit it did not cause. Seniors have earned Social Security through a lifetime of hard work.
  • Do away with the Bush tax cuts AND end tax loopholes for corporations and the wealthy. Make them pay their fair share.

Resources, Events, & Activities

This summer has been a busy season of activism for New York.   Join our email list for the most recent updates on progressive issues and events taking place across the City and check out our calendar of events.  In the meantime, here are several additional resources of interest:

Debt Ceiling Resources

The current discussion on the debt ceiling and potential cuts to vital programs has raised many questions.  Our recent blog post “What’s up with Obama’s Debt Ceiling Offer” provides some insight into this issue.  The following information may also be helpful:

  • What is the federal debt ceiling?  Learn more from NPR.

Debt Ceiling Events

  • July 20 Debt Ceiling Rally and Press Conference Event in lower Manhattan-Staten Island

3:45pm: Join our fun “Boat Brigade”!

Gather at the South Ferry Terminal in Lower Manhattan. Together we’ll take the 4 p.m. ferry over to Staten Island. Bring group banners and homemade signs!

5:00pm: Press Conference and Rally
Take the Staten Island ferry to Borough Hall – 10 Richmond Terrace (Across the street from the St. George Ferry Terminal – enter on Stuyvesant Place).

  • July 20 and July 21 statewide coordinated campaign to prevent cuts to critical social service programs

Email Hilary Papineau to RSVP or for additional information: hilarina@gmail.com

Events are sponsored by the new “Restore the American Promise” campaign. Partners include 1199 SEIU, Fight for a Fair Economy • Citizen Action of New York • New York State Alliance
for Retired Americans • New York State AFL-CIO • New York Statewide Senior Action Council • New York Association on Independent Living.

OTHER INFORMATION OF INTEREST

Fracking Updates

While New York awaits updates regarding Governor Cuomo’s final stance on fracking, read about the successful lobby visit that took place in Albany last week; this interesting blog depicts the camaraderie and collaboration that took place as over 200 activists

Clean Elections Campaign Initiative

Grassroots NYC is an organization working to reform campaign financing in New York City.  The organization has put forth a “Clean Elections” bill at the City Council level and also monitors the impact of federal campaign financing actions on local fundraising.   A recent Supreme Court decision ruled against public funds for campaigns, a decision which will negatively impact the NYC matching funds system.  This presents an opportunity for GrassrootsNYC’s to pursue its clean elections system initiative.

July 16th and 17th: MoveOn.org American Dream House Meetings

MoveOn.org has organized a series of [American Dream House Meetings to discuss how to attain a more desirable American Dream is in the making, one that is green, sustainable, and equitable based on creativity and cooperation.  On July 16, New Yorkers will gather to discuss the possibilities & what this could practically look like and how to make this better world a reality.  Join or host one today!

Voter Registration Drives on July 16

Join fellow democrats throughout the City register new voters.  Voter registration drives will be taking place at fun and busy locations across the City and beyond, including:

Union Square:

http://my.barackobama.com/page/event/detail/gpkfwj

Harlem:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpk3tc

Atlantic terminal:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpkfbd

Fulton Street, Brooklyn:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpk3kv

Staten Island:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpkfvv

Astoria, Queens:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpkfvy

Philly:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpkmbp

Bethlehem, PA:

http://my.barackobama.com/page/event/detail/voterregistrationdrive/gpkfgy)

Thank you!

– Hilary Papineau

 

What the Debt Ceiling Debate Means to Us All

What’s the difference between the debt and the deficit?

The federal debt is the cumulative effect of unresolved deficits over time. It currently amounts to about $14.3 trillion. The deficit is the gap between government income (i.e., taxes and other fees) and outflows in any given year. The current deficit is about $1.5 trillion dollars, higher than was anticipated last year thanks to the extension (again) of the Bush tax cuts (under threat by the GOP of a filibuster against extension of unemployment benefits) as part of the budget compromise at the beginning of 2011 between Obama and the GOP.

What’s the debt ceiling and why is it an issue now?

On May 16, the gross federal debt reached the limit allowed by law, the so-called debt ceiling. Unless Congress raises the debt ceiling, the U.S. government will default on its debts–for the first time in U.S. history. Many in the GOP are willing to force that to happen.

What would be the likely consequences of default?

  • The government would be unable to pay interest to holders of government bonds. (That includes domestic and foreign holders of such bonds.)
  • The credit rating of the U.S. government, which has always been AAA, would be downgraded.
  • Credit markets would freeze, as they did in September and October 2008.
  • As banks stopped lending, banks and businesses would do the same.
  • Interest rates would rise sharply–for treasury bonds, corporate bonds and consumer loans.
  • The stock markets would likely sink like a stone–not just in the U.S., but internationally.
  • Since 40% of government spending depends on borrowing, federal spending–of every kind–including Social Security benefits, soldiers’ pay, etc.–would immediately drop by 40%, causing a huge shock to the economy.
  • In short, there would be an economic crash in the U.S. and quite possibly, globally.

So it seems obvious that Congress should pass a bill raising the debt ceiling, right? Why is there controversy about that?

Although polls show the public is primarily concerned about jobs, there is widespread concern about the size of the deficit (currently about 10% of GDP) among the nation’s political elites. Concern about the deficit has been expressed repeatedly by politicians in Washington and elsewhere, and news stories about the deficit have been far more common than those about the unemployment situation.

Perhaps for that reason, the public strongly opposes raising the debt ceiling. (Whether any polling has been done on the extent of public knowledge of the issue, including the likely result of failing to raise the debt ceiling, is unknown to me at this time.)

The GOP insists unanimously that the deficit be addressed solely through spending cuts; no tax increases are acceptable to them. This despite the fact that (a) the Bush tax cuts, which were supported unanimously by the GOP, are responsible, along with the Medicare Part D unfunded mandate and Bush’s refusal to raise taxes to pay for the wars in Iraq and Afghanistan, for 33% of the deficit; and (b) contrary to GOP claims, tax cuts do not pay for themselves, as shown by Bush’s miserable record of job creation and GDP growth, despite enacting enormous tax cuts.

Despite the evidence and common logic, the Republicans in Congress insist that any vote to raise the debt ceiling must be accompanied by huge cuts in spending, excluding defense. At first, the GOP excluded Medicare, Medicaid and  Social Security from cuts as well, but not any more, as Senate Minority Leader Mitch McConnell stated on Friday. In fact, many of the tea party Republicans in the House of Representatives argue that the debt ceiling should not be raised at all, regardless of the consequences.  This is crazy. We could go a long way toward reducing the deficit simply by eliminating the Bush tax cuts, ending our involvement in Iraq and Afghanistan, and resuming stimulus spending to boost the economy.

GOP gang initiation

Recently, the House GOP voted almost unanimously for Paul Ryan’s budget plan, which includes privatization of Medicare and changes to Medicaid that would make it unsustainable. The public reaction to that plan has been overwhelmingly negative and a Democrat, Kathy Hochul, recently won election to the House campaigning explicitly against it in an overwhelmingly Republican district. So essentially, the GOP is demanding that the Democrats in Congress cave in to their demands for drastic cuts to Medicare and other social programs under threat of default on our federal debt, the downgrading of our international credit rating, and a likely plunge into economic depression. What they can’t win at the ballot box they hope to win through extortion.

What you can do

Please join us in contacting your senators and representatives. Urge them to say no to the GOP’s extortion antics. The debt ceiling must be raised. There are rational ways to reduce the deficit and they must include repeal of the Bush tax cuts as well as spending cuts that do not hurt the most vulnerable among us, but those decisions must be made rationally–not haphazardly under threat.

On May 12, Make Big Banks and Millionaires Pay

Greater NYC for Change is proud to be on board the On May 12 campaign! Mayor Bloomberg’s cutting funding to dozens of services relied upon by low income and working New Yorkers, while the Big Banks get bailouts and tax breaks, and their CEO’s give themselves record-setting bonuses. Enough is enough – it’s time for them to pay their fair share. The question is – where will YOU be on May 12?

Sign up to hear about all updates on May 12th on Facebook or check out www.onmay12.org

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From Wisconsin to Wall Street, people are joining together in an uprising for economic justice.

The Big Banks crashed our economy, destroying jobs, foreclosing on millions of homes and wrecking cities and states budgets across the country. After trillions in taxpayer funded bailouts, Wall Street is making billions in profits and giving away record bonuses to CEOs – not a single one of whom has ever been prosecuted or held accountable for the economic crimes they committed.

From Bed-Stuy to the Bronx, our communities are hurting. Here in New York City, tens of thousands have lost their homes and their jobs. Now, Billionaire Mayor Mike Bloomberg is proposing devastating budget cuts as the only solution to the economic crisis that Wall Street caused. Thousands of teachers could be laid off. Childcare and senior centers could be closed down while our homeless shelters are overwhelmed. All while our subways, schools, and parks decay.

At the same time, Mayor Bloomberg is pushing for more tax cuts for the wealthy and giving away billions to Wall Street in corporate welfare, bogus property tax exemptions, and sweetheart deals. Enough is enough.

From Wisconsin to Wall Street, regular people are fighting back.