Posts Tagged ‘President Barack Obama’

There are more TPPs in the pipeline

July 1, 2015

The Trans-Pacific Partnership is just the beginning.

POLITICO reported that four more trade agreements are now being negotiated.

Following Congress’ hard-fought approval of “fast-track” trade authority last week, U.S. Trade Representative Michael Froman vowed not only to complete the 12-nation Trans-Pacific Partnership but an even bigger pact with the European Union and three other major trade deals — all in the 18 months remaining in President Barack Obama’s term.

It could add up to the biggest trade blitz in history, transforming the rules under which the world does business.

sw0625cd_590_356“We’ve got a lot of pots on the stove,” Froman told POLITICO while watching senators cast their final votes to send the legislation to the president. We want to get TPP done and through Congress. We want to get TTIP negotiated. We’re going to finish ITA. I’m hoping to finish EGA and TISA.”

Those would be, in order: the Transatlantic Trade and Investment Partnership agreement with the European Union, an even bigger pact than the TPP in terms of economic size; the World Trade Organization’s Information Technology Agreement, which covers about 97 percent of world IT trade; the Environmental Goods Agreement, accounting for 86 percent international commerce in green goods; and the 24-party Trade in International Services Agreement, which involves three-quarters of the United States’ gross domestic product and two-thirds of the world’s services, such as banking and communications.

via POLITICO.

I’d heard of the Transatlantic Trade and Investment Partnership (TTIP) and the Trade in Services Agreement (TISA), but not the Information Technology Agreement or the Environmental Goods Agreement until now.

(more…)

The truth about President Obama’s budget

February 5, 2015

I like to write good things to write about President Obama.  It helps me to convince myself that I am a fair-minded person, and also convince my friends, most of whom are supporters of the President.

But usually when I do, it turns out there is a catch.  I feel as if I were Charlie Brown in the comic strip once again trusting Lucy to hold the football so he can kick it.

I wrote a post the other day praising the President for budget proposals, which contained some modest tax increases on the upper income brackets and some modest benefits from working people.

But now I realize I missed important parts—more spending for the military, tax reductions for the rich and cuts to Medicare.

Andre Demon, writing for the World Socialist Web Site, pointed out:

Obama’s budget proposal would increase Pentagon spending by 7 percent, adding an additional $38 billion to bring the total defense budget to $534 billion. 

Obama is separately proposing $51 billion in additional funding for the wars in Iraq and Syria, including money to back the so-called “moderate” opposition in Syria, as well for as the ongoing US troop presence in Afghanistan.

Newsweek - Obama - The Democrats ReaganThe budget calls for the corporate tax rate to be cut to 25 percent for manufacturers and 28 percent for other corporations, down from the current rate of 35 percent.

The proposal would also allow US corporations to repatriate past profits generated overseas at a tax rate of only 14 percent.  Foreign profits would be taxed at 19 percent in the future. 

Currently, US corporations pay a rate of 35 percent on foreign profits, which many corporations avoid by keeping their foreign earnings abroad.

These tax cuts are accompanied by $400 billion in cuts to Medicare, Medicaid and the Department of Health and Human Services. 

The budget proposes to raise $66 billion over ten years by charging higher Medicare premiums to upper-income patients, a move that would undermine Medicare’s status as a universal entitlement and open the door to means testing and the transformation of the government health insurance program for seniors into a poverty program.

The plan would cut another “$116 billion in Medicare payments to drug companies for medicines prescribed for low-income patients,” according to the New York Times. 

It would also slash $100 billion for the treatment of Medicare patients following their discharge from the hospital, affecting primarily the elderly.

via World Socialist Web Site.

(more…)

Wall Street brokers free to rip off retirees

January 30, 2015

One of President Barack Obama’s top economic advisers said abusive trading practices are costing workers billions of dollars in retirement savings each year and called for stricter rules on Wall Street brokers.

Snidely+WhiplashJason Furman, chairman of Obama’s Council of Economic Advisers, drafted a Jan. 13 memo citing research that says some broker practices, such as boosting commissions with excessive trading, cost investors $8 billion to $17 billion a year.  The document was circulated to senior aides and indicates the White House may support tighter oversight of brokers who handle retirement accounts.

The memo, obtained by Bloomberg News, makes the case for a Labor Department regulation that would impose a fiduciary duty on brokers handling retirement accounts, requiring them to act in their clients’ best interest. Under current rules, brokers are held to a ‘suitability’ standard, meaning they must reasonably believe their recommendation is right for a customer.  [snip]

The document says researchers’ estimates of up to $17 billion in investor losses are “quite conservative.”  Investors lose five to 10 percent of their long-term savings due to conflicted advice, according to the memo.

“Academic research has clearly established that conflicts of interest affect financial advisers’ behavior and that advisers often act opportunistically to the detriment of their clients,” the memo says.  That includes the practice of brokers receiving payments for selling certain mutual funds.

via Bloomberg Business.

Financial ripoffs in the recent past have been justified on the groups that clients were sophisticated investors who should have know what they were getting into.  But the average American working person, saving for retirement, is not sophisticated.  I don’t think many realize that their brokers were not required to act in their best interest.

The Obama Labor Department could have changed the regulation at any time during the past six years.  Will it act now?  It will be interesting to see.

LINKS

While Deflategate and Chaitgate Rage, America Quietly Robs Its Elderly by Matt Taibbi for Rolling Stone.

White House Aide Calls for Stricter Broker Rules on 401(k)s by Dave Michaels and Margaret Collins for Bloomberg News.

What’s wrong, and what to do about it

December 3, 2014

whatswrongwithuseconomy_a_final1_infographic350w

The AFL-CIO has an excellent series of infographics about what’s wrong with the U.S. economy, which I have put into this post.  For those who have a little time, I link to four articles explaining the infographics.  For those who have more time, I then link to background information on which the articles are based.

My only argument with the AFL-CIO is that they attribute bad economic policies exclusively on Republicans, while ignoring Wall Street Democrats such as Bill and Hillary Clinton, Barack Obama, Joe Biden, Chuck Schumer and Christopher Dodd.

(more…)