[PEN-L:3322] Will send new version of OP ED
Dear Penners: About two months ago I circulated a piece that I had submitted to the local paper attacking the idea of balancing the budget. It has finally been published. Anyone who wants to use it now can ... The paper will be very happy to give reprinting rights if it's just referenced. If you want to use it for more than just the classroom, (say reprinting in another paper) you ought to get permission (but they told me they'd be happy to give it!). I'm sending it right after this one, text only. -- Mike Meeropol Economics Department Cultures Past and Present Program Western New England College Springfield, Massachusetts "Don't blame us, we voted for George McGovern!" Unrepentent Leftist!! [EMAIL PROTECTED] [if at bitnet node: in%"[EMAIL PROTECTED]" but that's fading fast!]
[PEN-L:3323]
WPC [Copyright, The Springfield Republican, March 10, 1996) How To Make Sense Out of the Budget Deficit Issues The rhetoric of "conventional wisdom" in Washington asserts that the Federal Budget must be balanced. The turth is there is no rational reason why the budget deficit needs to be reduced to zero. It is entirely appropriate for certain kinds of expenditures to be financed by the public debt. This is analogous to the rational beahvior of families and businesses. The argument for a balanced budget claims that borrowed money leads to a reduction in other expenditures when the debt must be paid back. People falsely conclude from this argument that their grandchildren will suffer a decline in income in order to pay for the "overspending" of this generation. But, that would only happen when and if individuals borrow for current expenditures: food, rent, gas, entertainment. The truth is, it is good for individuals to borrow money to purchase things that will continue to provide a service while the loan is being paid off. Families routinely borrow for appliances, cars and houses. The key is that thevalue of the product must exceed how much is owed on the product. Similarly, families borrow for investments, such as college educations and business ventures. A successful education or business is measured in a higher standard of living. The interest paid to service the loan will be more than made up for by the results of those investments. When an individual or family experience a temporary decline in income -- a seasonal layoff or an illness -- borrowing is a better alternative than reducing the standard of lviing in the present by selling one's car or moving to a cheaper dwelliing. In the world of business, debt is even more closely analogous to government debt. Unlike individuals, businesses can "live forever" just as governments do and thus are able to "roll over" their debt when it comes due. Individuals have to ultimately "pay off" their debts because they will not live forever and therefore will not have a flow of income to pay interest forever. A corporation, however, if it does good business can pay interest on debt indefinitely. Thus, creditors are always willing to "roll over" (make a new loan to pay off the principal on the old loan) the debts of a successful business. Creditors are concerned with the ratio of debt service (interest and principal repayment) to the business's cash flow. If the income of the business rises, its debt may also rise. However, businesses need to borrow for investments, not for current expenditures. The investment is expected to raise income in the future to finance the debt and earn extra income. Spending borrowed funds on current expenditures, on the other hand, would reduce the business's net income in the future. When it comes to the government, it is important to understand that the issue of deficit spending is different from the issue of government waste. If government wastes money, it is irrelevant whether there's deficit spending or not. However, if the spending isn't wasted, then deficit spending to make investments is just as appropriate for government as it is for individuals and businesses. State and local governments make explicit distinctions between current expenditures and investments in roads, schools, senior centers, sewers, etc., but the federal government does not. If the federal government had an investment budget, most of what looks like a deficit would disappear. It spends money on highways, research and development, and education. Some of its much maligned social programs are also clearly investments in human development such as Head Start. Also, the federal government grants monies to state and local governments for construction projects. The federal government uses deficit spending to stimulate the economy during hard times. In a recession, failure to borrow money and increase federal spending raises unemployment and therefore lowers incomes. Borrowing to fight a recession pays off in higher incomes today as well as in the future. This is analogous to the temporary borrowing of individuals. The guidelines for federal borrowing should be identical to those for individuals and businesses -- the ratio of debt to total income should not continue to rise indefinitely. Between 1980 and the present, Congress and several Presidents have behaved irresponsibly. Debt rose as a percentage of total income. A correction is needed, but one that is much more modest than Washington's current plans. It is totally unnecessary to "pay off" any of the national debt. Just as with corporations, the government can roll over its debt without any problems. From 1946 to 1980, the total size of the national debt grew from approximately $242 billion to $709 billion, while the ratio of debt to Gross
[PEN-L:3324] FW: Daily Report
I work on the CPI, not in Employment/Unemployment Stats, but there is something wrong with the 705,000 jobs--I sort of expect a revision next month. NO, I cannot tell you what the CPI for Feb. will be--that's why we quote outside sources. Dave Richardson -- BLS DAILY REPORT, MONDAY, MARCH ll, l996: The unemployment rate dipped to 5.5 percent and nonfarm payroll employment surged by an astounding seasonally adjusted 705,000 in February, the largest monthly increase in jobs since l983, BLS reports (Daily Labor Report, page D-l, E-6). Financial markets -- particularly the interest-sensitive bond market -- greeted the much-stronger-than anticipated report by diving, with many investors believkng robust job growth will interfere with the Fed's lowering short-term interest rates in March.In addition, the nation's unemployment rate dropped to 5.5 percent from 5.8 percent. On page Al0 of the same newspaper, The Post said that the Administration reported 8.4 million jobs created in 3 years. On the jump page of the page l story, The Post quoted Mickey Levy, chief financial economist of NationsBank Corp. in New York as noting that a striking exception to February's strong jobs picture was in manufacturing. Factory payrolls rose by 26,000 last month, but that was only a third of the 75,000 jobs lost in January -- evidence that that part of the economy is still struggling. He and other economists, including some at BLS, were particularly puzzled by the fact that initial claims for unemployment benefits are still averaging more than 370,000 a week, said The Post.Usually that many new unemployment claims are associated with much smaller monthly gains in hiring. The Wall Street Journal's "Tracking the Economy" feature (page A2) shows that Producer Prices, due to be released Thursday, is likely to go up 0.l percent, according to the technical data consensus forecast compared to the previous increase of 0.3 percent. The Consumer Price Index, due out Friday, is likely to go up 0.2 percent. It went up 0.4 percent last month Students are looking to unions for careers in social change, says The New York Times (page Bl). Since October, 400 students have applied to the AFL-CIO to be organizers and federation officials predict that the number will reach l,000 by graduation time -- more than twice last year's total of 450. Of that number, about two-thirds will be selected for an intensive 3-day training program that is the first step toward a career as an organizer. The influx of graduates, union officials say, will be the largest since the heydey of Cesar Chavez and the United Farm Workers in the l970s, and perhaps the largest since the Depression. In the Business Week article entitled "Squeezing out Joe Six-Pack" (March ll, page 22) the McGraw-Hill publication says U.S. manufacturing industries will continue to shed workers through the current decade. The Labor Department estimates that job losses will slow to an average pace of ll9.400 from l82,500 -- the average annual clip between l979 and l994. By 2005, the manufacturing workforce is expected to account for just l2.6 percent of total U.S. nonagricultural employment, compared with l6 percent in l994, nearly 20 percent n l979, and 33 percent in the mid-l950s. The single biggest job loser: the apparel industry.
[PEN-L:3325] Re: FW: BLS Daily Report
Don't you just love those financial markets? Employment rises more than expected, so Wall St decides there won't be an interest rate cut soon, and bond and share prices fall back - sufficiently to cause a weekend of panic over here in the UK about a repeat of the 1987 crash! Hugo Radice [EMAIL PROTECTED]
[PEN-L:3326] feb. payrolls
I hear you think that February payrolls were a fluke...Why? And by how much do you think they'll be revised? --John Liscio
[PEN-L:3329] Bercuson
Ken Hanley posted a negative review of David Bercuson's work yesterday on the net. I would like to qualify somewhat this view. Bercuson did some quite excellent work early in his career. He worked with Kenneth McNaught,a well respected social democratic historian, in his PhD thesis on the Winnipeg General Strike. His book on the One Big Union _Fools and Wisemen_, though not without problems, is still a very good book. I contributed to his collection on Canadian federalism, more years ago than I want to mention, though I still think the volume is worth reading. (Hey, naked promotionism!). However, I think his more recent work is rightwing, nativist (in the worst sence) and anti-intellectual. I consider it rather sad to see the degeneration of a rather accomplished scholar to a kind of narrow "reformer". But then, I have been told that the whole history department at Calgary (devastated by cutbacks) has been reduced to a department of regimental military historians celebrating death and gore in the past, and ignoring society, past and present. In sorrow, Paul Phillips
[PEN-L:3327] Anti-Religious Play by NBA
I would like to draw everyone's attention to the plight of Denver Nuggets basketball player Mahmood Abdul-Rauf. Abdul-Rauf is a Muslim who recently decided not to stand for the national anthem prior to the game because of his religious beliefs. The NBA has suspended him without pay until he agrees to stand for the anthem. This incident is already bringing out some of the worst attitudes in the Denver area. This afternoon I heard a radio DJ making fun of Abdul-Rauf, saying that if Abdul-Rauf couldn't stand for the anthem, then the DJ couldn't watch an overpaid basketball player. The Nuggets have issued a public statement saying essentially that the NBA's rule speaks for itself. I am not certain what other players are going to do, but it looks like Abdul-Rauf is going to be on his own on this issue for a while. I regret that I do not have the NBA's telephone number, but I can share with you the Denver Nuggets's number: Admin. 303-893-6700 Box Ofc.303-893-3865 These numbers come from the '94-'95 Denver phone book and hopefully are correct. I'll definitely be making some phone calls. Steven Zahniser [EMAIL PROTECTED]
[PEN-L:3328] Bercuson the GREAT ACADEMIC on tenure
David Bercuson, Dean of Graduate Studies at Calgary, a history prof. and author of several books including two on the Winnipeg General Strike, and one on Canadian Universities called THE GREAT BRAIN ROBBERY called for abolition of tenure as long ago as 1984. Obviously someone was listening since his stock has risen. Bercuson argues that democratization and unionization harmed Canadian universities and that tenure is simply a means by which faculty feather their nests and protect the incompetent. Of course he rejects getting rid of tenure for the wrong reasons i.e. economic reasons and to give administrators more power and flexibility. He wants to have five year contracts and a review by quality senior scholars to turf out the incompetents. See the GREAT BRAIN ROBBERY 1984 Toronto: McClelland and Stewart (co-authored with Robert Bothwell, and J. L. Granatstein. This grey eminence of the Western Canadian Historical Establishment has now issued his ukase re UI. He has paid into UI (Unemployment Insurance) for years but has never gotten a cent back. A response to Bercuson appears in the PEOPLE'S VOICE (March 1996) by Emil Bjarnason: So David Bercuson (Dean of Graduate Studies, University of Calgary) feels he isn't getting a fair shake from the UIC. He says "I'm one of those many Canadians... who are forced to make a contribution to the unemployment insurance fund each and every month but I have never drawn a cent out." In relation to UI and CPP, he refers to the government "as the same people who have picked my pocket for the last 30 years." He wants his money back. Does he also feel that he is entitled to a refund of his property insurance premiums because his house has never burned down? Be of good cheer, David. Things are changing. Have you noticed the increasing number of PHD's MBA's and former CEO's standing in the breadlines? If Paul Martin (federal MP responsible for budget) and Ralph Klein (premier of Alberta) continue to slash the funding of universities, you may well have a chance to recover some of your UIC contributions. COMMENT: Of course Bercuson hopes to help put more profs. on the breadlines by weeding out incompetents at Calgary--and also doing away with weak disciplines such as Canadian Studies ( I wonder what he thinks of women's studies or native studies!) . We can only wish that Bercuson gets seriously ill so that he can recoup some of the funds he has paid into the medicare system and enjoy the cutbacks Klein has made in Calgary hospitals. Cheers, Ken Hanly
[PEN-L:3330] urgent action (fwd)
Forwarded message: From: D Shniad [EMAIL PROTECTED] Subject: urgent action (fwd) To: [EMAIL PROTECTED] (michael perelman), [EMAIL PROTECTED] (Sam Lanfranco) Date: Tue, 12 Mar 1996 21:02:19 -0800 (PST) Dear Michael and Sam, I have signed off Pen-l and Labor-l for the next ten days. Since signing off, I received the follwowing message. Could you kindly forward it to your respective lists? Thanks. Sid Shniad Forwarded message: From [EMAIL PROTECTED] Tue Mar 12 16:02 PST 1996 Message-Id: [EMAIL PROTECTED] Date: Tue, 12 Mar 96 19:02:13 -0500 (EST) From: [EMAIL PROTECTED] (Christian Task Force on Central America BC) To: [EMAIL PROTECTED] Subject: urgent action Cc: [EMAIL PROTECTED], [EMAIL PROTECTED], igc!iwtc, [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], [EMAIL PROTECTED], igc!smooney, igc!technomama, [EMAIL PROTECTED], igc!vsister, igc!wings Content-Type: text Content-Length: 6374 March 12, 1996. -- URGENT ACTION GUATEMALA URGENT ACTION GUATEMALA VIOLENCE AGAINST TRADE UNIONISTS CONTINUES Dear Friends, We have received a request for urgent action from the Bank Workers' Federation of Guatemala -FESEBS. On February 27, 1996, at 6 p.m. VILMA CRISTINA GONZALEZ (35) was leaving her job at the postal office (7a. Ave. 12 St. Zone 1) in Guatemala City when a group of heavily armed men in a van with polarized windows forced her into the car and abducted her. She was released hours later and is on medical treatment because she had been tortured and repeatedy raped. Vilma Cristina Gonzalez was threatened with death if she and her brother did not leave the country and if her brother did not stop his union activities. Her own independent activities were not questioned. Her brother REYNALDO GONZALEZ is the general secretary of FESEBS and has been involved in the labour. Reynaldo Gonzalez is leaving the country on Thursday March 14 but Vilma Cristina is not. On Thursday, February 29, Vilma Cristina Gonzalez saw the same black suburban vehicle, in which she was abducted, parked about a block from her home; she was followed and intimidated. Later that evening, a one-page letter was left under the door of Mrs. Gonzalez' home. Among other insults and vulgarities, it warned: " We are giving you 48 hours to leave the country. We are going to machine gun your home and your family. We are going to bury your two daughters in the same coffin with you. We already told you that we are going to rape them." BACKGROUND INFORMATION. For more than two decades, trade unionists and their families in Guatemala have been targets of threats, torture, disappearances and killings. According to the Guatemalan Constitution and Labor Law, the workers can organize unions. However, almost every time that workers attempt to form a union, they become victims of repression. Usually members of police and/or the army are involved in it. Generalized System of Preferences (GSP) is a United States policy whereby those countries containing a maquila sector are not required to pay taxes for exports into the U. S., thus increasing profits for private enterprise in Guatemala. Guatemala has been under a workers' rights review since August, 1992 due to the increase in violence against Guatemalan workers. Guatemalan labour activists are asking that the U.S. Trade Representative (USTR) suspend duty-free benefits unless the government takes immediate action to investigate and begin prosecuting those who have abducted, tortured and murdered Guatemalan workers in the past six months. Reynaldo Gonzalez... Reynaldo Gonzalez is the general secretary of FESEBS and has been more involved in the GSP petition process than any other Guatemala trade unionist. He has provided much information to US/GLEP regarding the non-functioning of the labour court system, data which formed the basis of a substancial part of US/GLEP's own submission to USRT. Mr. Gonzalez has been, for the past two years, the convener of meetings involving all primary Guatemalan trade union organizations to develop a common position on GSP and coordinate the gathering of information to be submitted to USTR directly and through US/GLEP. He has testified before the USTR interagency subcommitee on GSP at the last public hearings in November 1993 in Washington D. C. despite threats warning him not to do so. Reynaldo Gonzalez was one of the lead spokespeople representing the trade union movement at the meetings with the USTR delegation held in November 1995. and previous threats against him. After testifying before the USTR subcommittee in November, 1993, Reynaldo Gonzalez received warnings serious enough
