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February 5, 2010
Posted: 07:00 PM ET
(PHOTO CREDIT: GETTY IMAGES) FROM CNN's Jack Cafferty: Phoenix, Arizona has approved a two percent sales tax on food. The city has a $240 million budget shortfall. So instead of laying off city workers, they have decided to tax people on what they eat. This is getting ridiculous. It's estimated the tax on everything from milk to meat to vegetables will bring in tens of millions of dollars a year. The tax is scheduled to last five years. The mayor says the city council could reverse its decision after hearing from the public in upcoming budget meetings. Phoenix had been at risk of cutting close to 1,400 jobs - including 500 police and firefighters - along with closing libraries, senior centers and after-school programs. Supporters of the tax say it's critical to keep emergency responders on the streets; and it can mean the difference between life and death. You could make the argument that eating also means the difference between life and death. Guess who gets hit the hardest with a tax on food? The working poor, seniors and others on fixed incomes. This tax will cause even more pain for the people of Phoenix during an already difficult economic time. Grocery shop owners worry what the food tax might do to their bottom line. There's already an 8.3 percent sales tax on non-food items at grocery stores; and two percent of that goes to the city. But Phoenix wants more... Here’s my question to you: Is taxing a basic necessity like food the answer to filling local budget shortfalls? Interested to know which ones made it on air? Filed under: Food Prices Tax Hike Taxes Posted: 06:00 PM ET
FROM CNN's Jack Cafferty: Socialism may be tossed around like a dirty word these days, but it turns out more than one-third of Americans have a positive image of socialism.
A new Gallup poll shows 36 percent of those surveyed have a positive view of socialism, while 58 percent have a negative opinion. No surprise that there is a big partisan gap here - most Democrats and liberals have a positive view of socialism, compared to the negative image held by most Republicans and conservatives. The poll also shows Americans are very positive in their reactions to these terms:
While they are divided on the terms:
As for capitalism, Americans respond more positively than negatively - by almost two to one - 61 to 33 percent. But out of all the items in this poll, socialism has the lowest positive rating and the highest negative rating - yet like we said, that positive view still tops one-third, which is significant. In recent months - some of the president's critics have taken to calling him a socialist. They point to some of Mr. Obama's policies, including what they call a government takeover of health care, as proof. Here’s my question to you: What does it mean if 36 percent of Americans have a positive view of socialism? Interested to know which ones made it on air? Filed under: Social Issues US Government United States Posted: 05:00 PM ET
FROM CNN's Jack Cafferty: First it was the banks and car companies... and now it looks like Social Security is the next in line for a taxpayer bailout.
A man dressed as a Social Security card demonstrates in front of the Capitol Building.
Fortune Magazine's Allan Sloan writes that for the first time in 25 years - Social Security is taking in less than it's spending on benefits. That's because For decades - the government has been using the surpluses from the nation's largest social program to pay for other things; and now Social Security is running out of money and pretty much consists of IOUs. Sloan points out that no one has officially announced that Social Security will be cash-negative this year; but it becomes clear pretty quickly when looking at a report from the Congressional Budget Office. This is outrageous - another bailout looming on the horizon because the government mismanaged these surpluses. And because there's no surplus, there's no interest income - tens of billions of dollars that are nothing more than a bookkeeping entry because the cash, which would earn that interest, is gone. replaced by IOUs. Things haven't been so bleak for the government trust fund since the early 80s - when it came very close to running out of money. Back then, the government wound up trimming benefits and raising taxes - which led to the significant cash surpluses. Meanwhile Social Security already provides more than half the income for most retirees; and with millions of people seeing their home values and stock portfolios slashed, this probably means they'll become even more dependent on social security in the future. Here’s my question to you: What should be done about the government squandering the Social Security surplus? Interested to know which ones made it on air? Filed under: Government Social Security February 4, 2010
Posted: 07:00 PM ET
FROM CNN's Jack Cafferty: Turns out the national jobs picture may be a whole lot worse than we thought.
The government may have underestimated job losses during the recession by close to one million jobs. That means instead of employers cutting about seven million jobs since December 2007 - that number could actually be eight million. One expert calls this an "enormous understatement of the severity of the crisis" - which would qualify as an enormous understatement. Here's what the Labor Department says happened: They release a revision of U.S. payrolls every year - using data that wasn't available as they calculated job losses month to month. Typically, the revisions don't amount to much - only a fraction of a percent of the total number of jobs. But the year that ended last March was a brutal one on the economy, with the U.S. coming very close to another depression... Economists say that during a time of such volatility... it's not a big surprise that there could be such a large discrepancy in the total number of jobs lost. And it's not getting much better - at least not yet. This morning first time jobless claims came in much higher than expected - climbing to their highest level since mid-December. And economists are pessimistic about the January jobs report - which is due out tomorrow morning. The national unemployment rate is expected to stay at 10 percent. Here’s my question to you: How much do you trust the government's reporting of things like employment numbers? Interested to know which ones made it on air? Filed under: Government Unemployment Posted: 06:00 PM ET
Tea Party activists are generally on the right end of the political spectrum, being fiscally and socially conservative. (PHOTO CREDIT: GETTY IMAGES) FROM CNN's Jack Cafferty: The one in Boston more than 200 years ago was amazing. Now there's another tea party brewing… Hundreds of mostly conservative and independent activists are descending on Nashville, Tennessee for the first-ever "National Tea party Convention." The movement started in small towns and large cities across the country - with people protesting against President Obama's economic and health care policies. It's grown from dozens to hundreds of loosely-linked grass-roots groups. Tea partiers have varying political views, although they generally agree on fiscal conservatism and the idea that the federal government has become too powerful. Although the tea party movement has no national organization and no leader - it has quickly grown in size and is starting to smell a little like a political party. Organizers say this weekend's convention is sold out, with about 600 attendees paying $550 to attend. Some of the sessions planned include "Technology in the Tea Party Movement,"... "Defeating Liberalism via the Primary Process" and "Why Christians Must Engage." Sarah Palin, the keynote speaker, is reportedly being paid $100,000 - although she insists she won't "benefit financially" from the event. Palin says anything she makes from her appearance will go "right back to the cause" - whatever that means. But other high-profile speakers and activist groups have dropped out. Critics say the average tea party-goer can't afford the tab for a "lobster and steak dinner in a fancy hotel," they say it sounds more like a "regular Republican fundraiser" than like a tea party. Here’s my question to you: How seriously do you take the tea party movement? Interested to know which ones made it on air? Filed under: Government Posted: 05:00 PM ET
FROM CNN's Jack Cafferty: It's the Tiger Woods of car companies. Never has a company with such a sterling reputation managed to totally trash it in a matter of a few weeks.
Toyota is recalling eight million vehicles in the U.S., Europe and China, and has been ordered to investigate the brake system by Japanese government.
Toyota is now recalling more than eight million vehicles worldwide for gas-pedal related issues... and this number could go even higher now that there's a formal government investigation into braking problems for the hybrid Prius. The recalls in the U.S., Europe and Asia are due to several problems - including millions of cases where accelerator pedals can get stuck in floor mats; and millions more where gas pedals become sticky as they wear - and then don't come all the way back up when the driver takes his foot off the pedal. Some cars have both problems. As for the Prius, while it's not one of Toyota's top-selling cars, it is the best-selling hybrid in the industry. The Japanese automaker estimates the cost of this global recall could be as high as $2 billion - including the loss of 100,000 vehicle sales in the U.S. and Europe. This is a company that had an excellent reputation for quality and reliability. In 2008, it overtook General Motors as the world's biggest car maker. But that reputation is gone - with millions of car owners scared, very scared... The car maker has shut down several new vehicle assembly lines and is rushing parts to dealers to fix the accelerator problems. And Toyota will have to face questions, lots of them, from Congress and other government investigators. Meanwhile many consumer groups are asking if the gas pedal fix will even work. Here’s my question to you: Would you buy a Toyota? Interested to know which ones made it on air? Filed under: Toyota recall February 3, 2010
Posted: 07:00 PM ET
FROM CNN's Jack Cafferty: "The era of big government is over"... that's what President Bill Clinton told the nation in 1996... before cutting hundreds of thousands of federal government jobs. But guess what? They're back… and then some.
According to President Obama's proposed budget - the number of federal government employees will grow to nearly $2.15 million this year - the largest federal workforce's in modern history. AND - this doesn't even include postal workers or the more than 7.6 million federal contract workers. Since the recession began - 200,000 workers have been added to the federal government payrolls. Have they ever heard of layoffs? During the same time, the private sector was downsizing to the tune of about 7 million lost jobs. With the country looking at a $1.6 trillion deficit just this year - a record - as well as a more than $12 trillion in national debt - also a record - it seems worth asking if this is the right time for more government employees. One expert says it's a matter of time before Republicans, Tea Partiers, etc. go after the president on this issue. Perhaps it's time for a federal hiring freeze except for jobs related to national security, public safety, etc. That way the workforce would decline through attrition as older federal workers retire. But that would require political courage. Here’s my question to you: In light of record deficits, is now the time for one of the largest federal payrolls ever? Interested to know which ones made it on air? Filed under: Deficit Economy Posted: 06:00 PM ET
(PHOTO CREDIT: GETTY IMAGES) FROM CNN's Jack Cafferty: Imagine taking a pill that could help you live to be 100 years old. Scientists expect such a drug to be ready for testing within three years; and they claim the pill could revolutionize aging. Here's the deal: Researchers have identified three so-called Supergenes that allow those who have them to live to 100 years. Two of these genes produce what is referred to as good cholesterol, which reduces the risk of heart disease and strokes. The third gene protects against diabetes. People born with these three genes are 20 times more likely to reach 100 years old - even if they're overweight, heavy smokers, have a bad diet or don't exercise. In other words - they can maintain these unhealthy habits and still live longer. Those with these three genes in their DNA are also 80 percent less likely to develop Alzheimer's disease. Now that scientists have identified these Supergenes, they're trying to develop a pill that will duplicate those genes so anyone can live that long. Experts say this will eventually mean longer and healthier lives for millions of people. However, the social implications of something like this are immense. We are already overpopulating the planet. And just think about the costs of Social Security, Medicare, etc. if more and more people start making it to 100. Here’s my question to you: Would you choose to live to be 100? Interested to know which ones made it on air? Filed under: Longevity Uncategorized Posted: 05:00 PM ET
FROM CNN's Jack Cafferty: Turns out some lawmakers are all about fiscal restraint - as long as the cuts don't affect their constituents. Not in my backyard, right?
Pres. Obama speaks on the 2011 budget in the White House Grand Foyer. The budget includes billions of dollars for job programs and mandates deficit cutting.
Politico reports about fiscal hawks who are now balking at Pres. Obama's proposed budget cuts. For example:
And on it goes... Missouri's senators - one Democrat and one Republican - are against the president's plans to cut out spending on the C-17 aircraft... the manufacturing represents lots of jobs in St. Louis. And coal-state lawmakers are unhappy with the president's call to eliminate tax breaks for that industry With midterm elections sneaking up around the corner - once again, politics will trump all. To hell with the nation's skyrocketing deficits. These lawmakers talk a good game about cutting spending, but at the end of the day, that's all it is: Talk. Here’s my question to you: How can the U.S. reduce deficits when most lawmakers won’t support budget cuts in their own backyards? Interested to know which ones made it on air? Filed under: Deficit Government Senate and Congress February 2, 2010
Posted: 07:00 PM ET
FROM CNN's Jack Cafferty: The middle class in this country isn't what it used to be.
Since the end of World War II, middle class America has always meant a certain kind of security. If you got a good education and worked hard, there was the promise of success - being able to provide for your family, buy a home, educate your children; and enjoy a comfortable retirement. There was also the belief that each new generation would have it better than their parents' generation did. Well - that's not the case anymore... and it might never be again. Since the start of the economic downturn, it's estimated that more than seven million Americans have lost their jobs - and a lot of those jobs went overseas never to return. The national unemployment rate is 10-percent, but jumps to a whopping 17-percent when you include those who are underemployed. The nation's jobless rate is expected to remain higher than normal for a long time. As for the great American dream of owning a home... in the wake of the housing crisis, More than two million families have lost their homes to foreclosure in the past few years. Consumer spending is down; and the new reality might be that it stays that way. Americans are paying more and more for the basics - food, health care and education. It's becoming increasingly difficult for many who used to consider themselves "middle class" just to make ends meet. Here’s my question to you: How has the definition of "middle class American" changed? Interested to know which ones made it on air? Filed under: United States |
Jack Cafferty sounds off hourly on the Situation Room on the stories crossing his radar. Now, you can check in with Jack online to see what he's thinking and weigh in with your own comments online and on TV. Send your comments on the "Cafferty File". Jack's Book
Read excerpts about Jack's battle with alcoholism and Jack's philosophy on parenting. CNNPolitics.com Headlines
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