What would fiscal austerity look like in the U.S.?
FROM CNN's Jack Cafferty:
It may be a sign of things to come here in the U.S.:
Running out of money and drowning in debt. Governments across Europe are cutting, cutting and then cutting some more... and the pain is palpable.
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CNNMoney.com reports what fiscal austerity looks like... and countries including Greece, Italy, Spain, Hungary, Portugal, and Ireland are living through it now.
These governments are implementing a wide range of tough measures - and in the process imposing a dramatic change in lifestyle for their residents.
These include - freezing public-sector wages and state spending, cutting jobs, social welfare benefits, and state and local budgets.
Some governments are raising retirement ages and reducing pension payments... others are increasing taxes - from the value-added tax to higher taxes on gasoline and cigarettes... and income and profits taxes.
It gets worse - with the added concern that economic instability will lead to political unrest.
Top European officials are warning that Democracy could "collapse" in Greece, Spain and Portugal unless they take urgent action to fix the debt crises. They worry these countries could fall victim to military coups or popular uprisings.
Meanwhile on this side of the Atlantic Ocean, as America's national debt tops $13 trillion - there's no indication the federal government will stop spending anytime soon.
Just this week, President Obama asked for another $50 billion in emergency aid to state and local governments.... but no word on how to pay for it.
At the same time some state governments, which are actually required to balance their budgets, are threatening to cut services if lawmakers can't agree on spending cuts.
Here’s my question to you: What would fiscal austerity look like in the U.S.?
Interested to know which ones made it on air?
In light of the oil spill, would you vacation on the Gulf Coast?
Pres. Obama, Mayor George Schloegel (L) and Mississippi Gov. Haley Barbour (R) enjoy snowballs after a roundtable discussion with local residents in Gulfport. Obama has implored Americans to visit southern Gulf coast beaches, as the tourism industry fears a hammering over the BP oil disaster. (PHOTO CREDIT: MANDEL NGAN/AFP/Getty Images)
FROM CNN's Jack Cafferty:
The best way to help the people of the Gulf Coast is to go down there and visit - that was the message from President Obama as he toured the region earlier this week.
And Mr. Obama did his best to boost the tourism industry, struggling from the spreading oil slick. While visiting with local officials - he strolled the beaches, lunched on local crab cakes and shrimp... and downed a snow cone (down there, they're called "snowballs") in the 95 degree heat.
The president said one Gulfport, Mississippi hotel owner told him that business was down 40 percent due to the oil spill.
The effect of the worst environmental disaster in U.S. history on tourism is a nightmare scenario for small business owners all along the coast... we're talking tens of billions of dollars in lost revenue.
Analysts at Citigroup suggest that the loss of tourism and fishing revenues in Alabama, Louisiana and Mississippi alone could translate to claims of more than $10 billion.
Meanwhile it's estimated Florida could lose a third of its tourism industry... which would mean another $12 billion in lost revenue. Not to mention the hundreds of thousands of people who could lose their jobs.
As the monstrous oil spill continues to spread, it's devastating huge swaths of coastline and marshland - killing an untold number of wildlife... not to mention the economic impact of jobs lost because of the moratorium on offshore oil drilling in the Gulf.
Here’s my question to you: In light of the oil spill, would you vacation on the Gulf Coast?
Interested to know which ones made it on air?
Would Pres. Obama win a 2nd term if election held today?
FROM CNN's Jack Cafferty:
Tonight has the potential to be one of "those" moments for a president - a defining slice in time for Mr. Obama that could determine his relevancy from here on out.
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Nearly 60 days since the worst environmental catastrophe in U.S. history - Pres. Obama will address the American people from the Oval Office for the first time since he was elected.
And the pressure is definitely on. The Gulf Coast oil spill could carry a tremendous political price for Pres. Obama - perhaps putting re-election in 2012 out of his reach.
Lots of people - and we're not just talking Republicans here - are disappointed with the president's response to the oil spill. According to a U.S.A. Today/Gallup poll, seven out of 10 Americans say Mr. Obama has not been tough enough on oil giant BP and a majority rate his response as "poor" or "very poor." An Associated Press poll shows 52 percent disapprove of the way the president is handling the spill.
That means when it comes to tonight's speech - there better be some real meat on that bone and not just more fancy rhetoric delivered with the aid of a teleprompter.
And it's not just about the oil spill. Dana Milbank writes in the Washington Post about Pres. Obama's shrinking popularity. The president's 2008 rival, Secretary of State Hillary Clinton, is now more popular than Pres. Obama by any measure - favorability ratings or job approval.
Of course, Clinton is on much safer ground than the president - as she tends to stick to relatively low-profile issues.
But it's still not a good sign for Pres. Obama when the polarizing former First Lady is beating him in the polls... one more reason why all eyes will be on the president tonight.
Here’s my question to you: If the election were held today, would President Obama win a second term?
Interested to know which ones made it on air?
If GOP wins Congress in Nov., repeal health care reform?
(PHOTO CREDIT: THINKSTOCK)
FROM CNN's Jack Cafferty:
Remember how health care reform was supposed to make health care affordable for all Americans? Well that's not what's happening.
A new report says employer health care costs will jump another nine percent in 2011 - and you can bet that companies will pass along those higher costs to their workers.
The Price Waterhouse Coopers survey of 700 employers shows they plan to offset costs by raising deductibles. By 2011 - more than 50 percent of employees will have a deductible of $400 or more... that's compared to only 25 percent who paid that much in 2008.
Also, 13 percent of companies say their primary plans in 2010 had deductibles of more than $1,100... that's more than double the level in 2008.
If these troubling trends continue, health care will become less affordable for those people who actually have insurance.
And, in the end, the health care law will be another gift to the insurance and pharmaceutical companies... and another burden on taxpayers.
Republicans are trying to seize on this.
More than 70 incumbent lawmakers and more than 330 GOP candidates have signed a pledge to support legislation that would repeal the health care law - and replace it with something less costly - if they win in November.
Meanwhile - Democrats are hoping that as more parts of the law take effect and the public feels the benefits, they'll get behind it.
But, for now, polls still show that majorities of Americans oppose health care reform... months after it was shoved down our throats.
Here’s my question to you: If the Republicans win control of Congress in November, should they repeal health care reform?
Interested to know which ones made it on air?
What should Pres. Obama say about oil spill in Oval Office address?
FROM CNN's Jack Cafferty:
While BP struggles to get control of the gulf oil spill, President Obama is going to try to get control of the story line.
Tomorrow night he will make his first address to the nation from the Oval Office since being inaugurated. The speech will follow a 2-day visit to the Gulf region nearly 60 days after the start of the worst environmental disaster in U.S. history.
The stakes for the president are high. It is his fourth trip to the region since the April 20th rig explosion; he continues to come under fire for being slow to respond.
The trip, the Oval Office address and his first face-to-face meeting with BP executives since the spill are all meant to show that the president in charge. The question is whether it's too late and whether the remainder of his presidency will be damaged as badly as the Gulf Coast – much the way George Bush's presidency was damaged by Katrina.
In the Oval Office speech tomorrow night, President Obama is expected to call for BP to create an escrow account reportedly in the amount of $20 billion to pay for damage claims to businesses and individuals whose lives have been destroyed by the spill.
He's also expected to call for an independent third party to handle the claims process.
The cries for Mr. Obama to step up have been getting louder. Democratic Congressman Jesse Jackson Jr. recently called on the president to "level with the American people", use the crisis as a way to create jobs and "stop the blame game."
The spill has tested President Obama's leadership perhaps more than any other single event in his presidency.
Here’s my question to you: What do you want to hear from President Obama about the oil spill in tomorrow’s Oval Office address?
Interested to know which ones made it on air?
FULL POST
Do you feel better or worse about your financial situation?
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FROM CNN's Jack Cafferty:
While Washington touts the recovery, fewer Americans are feeling "better" about their own financial situation these days.
A new Gallup poll shows 50% of those surveyed say they feel better about their personal finances. But that's down 4 points from April... and so far the drop is holding in the month of June.
Not good.
The poll also shows that several other important measures of personal financial well-being are holding steady...including:
- 34% of Americans say they have more than enough money to do what they want.
- 77% say they have enough money to buy the things they need.
- and 21% say they worry they spent too much money yesterday.
These numbers have remained virtually unchanged in the past couple months.
But, the fact that more people say they're feeling worse about their personal financial situation could spell trouble.
For one thing, it's a turnaround from April when consumers were feeling better about their own pocketbooks.
There are several possible reasons for this decline, including the stock market having its worst month in 40 years in May.
Also, there's the ongoing and worsening financial crisis in Europe as well as the deteriorating conditions resulting from the Gulf coast oil spill. And the May jobs report was disappointing, showing an artificially high number of new jobs because of the hiring of temporary workers for the census.
Whatever the reason, if people are worried about their finances they're less likely to spend money – and without consumer spending, our economy has lost its motor.
Roughly two-thirds of the American economy is driven by consumer spending.
Here’s my question to you: Do you feel better or worse about your financial situation?
Interested to see which ones made it on air?
FULL POST
Why has U.S. politics lost any semblance of dignity?
FROM CNN's Jack Cafferty:
It's no wonder the American public is disgusted with Washington and politicians of all stripes.
Our lawmakers sound more like children messing around on the playground than the people meant to represent us and solve the nation's problems.
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And that starts right at the top.
This week, President Obama decided it was appropriate to go on the "Today Show" and talk about "whose ass to kick" when it comes to the Gulf coast oil spill.
This is a program that's watched by millions of families every morning. Classy.
Then one top Republican jumped in the game.
House Minority Leader John Boehner, who wants Democrats to focus more on reducing the federal deficits, suggested Mr. Obama find someone's "ass to kick" on the budget deficit.
Nice.
Meanwhile out on the left coast - the races for California governor and Senate have devolved into nasty insults - and there are still five months to go before the election.
Democrat Jerry Brown – who's running for governor - is comparing his Republican opponent, Meg Whitman, to Nazi propaganda master Joseph Goebbels.
When pressed on the comment - Brown's people call it "jogging talk" that was "taken out of context."
Brown made these dumb remarks to a reporter on a jogging path.
Then there's Republican Carly Fiorina - who was caught insulting Democratic Senator Barbara Boxer's hair.
Fiorina's spokeswoman dismisses it as "early morning small talk."
California is broke and swimming in problems; and the newest crop of political wannabes engage in personal insults under the labels of jogging and early morning small talk.
What's small are the people making these remarks.
Here’s my question to you: Why has American politics lost any semblance of dignity?
Interested to know which ones made it on air?
What if high unemployment is here to stay?
(PHOTO CREDIT: Justin Sullivan/GETTY IMAGES)
FROM CNN's Jack Cafferty:
What if this time is different? What if 10 percent unemployment is the new normal.
Fortune Magazine has a sobering piece that explores whether in today's economy there is no fix for high unemployment.
In addition to all the jobs that have disappeared overseas never to return, it's all about technology. We've already seen computers and robots wipe out lots of manufacturing jobs, as well as clerical and administrative jobs. And it could just be the tip of the iceberg.
Advanced technology might one day replace not only factory workers - but also professionals and jobs that require a college degree or specialized skills.
Skeptics suggest that while new technology might eliminate some jobs - it also creates new employment sectors. Fine… but here's the catch: innovation is likely to erase jobs in more labor-intensive professions... while creating new ones that rely more on technology and don't employ as many people.
Also, whereas in the past, new technological advances would wipe out jobs in one industry at a time - for example agriculture - this time around it's expected to hit hard everywhere.
If all this is true - it could mean the U.S. needs to fundamentally change the way our economy works. Higher unemployment would likely mean a drop in consumer spending, and that's the engine that drives our economy.
It could also mean people relying more on government social safety nets - while there are fewer tax dollars coming in and our deficits are exploding.
And - Fortune Magazine suggests that mainstream economists are "completely oblivious" to the fact that the jobs may never come back. Doesn't bode well for the rest of us.
Here’s my question to you: What if high unemployment is here to stay?
Interested to know which ones made it on air?
What if Arizona's new law causing illegal immigrants to leave the state?
FROM CNN's Jack Cafferty:
It's already working.
Arizona's tough new immigration law doesn't even go into effect for another seven weeks, but lots of the state's 460,000 illegal aliens are leaving now.
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USA Today reports that records from schools, businesses and individuals suggest that many worried legal and illegal Latinos are fleeing Arizona.
Schools in Latino neighborhoods show big drops in enrollment.
In one elementary school, 70 kids have been pulled out by their parents in just the last month... that's compared to seven students who left the school in the same period last year.
The superintendent says "they're leaving to another state where they feel more welcome."
That was pretty much the point of the Arizona law, wasn't it?
The new law requires police to ask for immigration papers if someone is stopped for another crime - you know, just like police ask for your driver's license when you're stopped for a traffic violation.
Businesses that serve primarily Latino areas say things are much slower.
The head of a chamber of commerce for Hispanic business owners says it's because illegal immigrants are holding onto cash as they prepare to leave the state.
Other small business owners say they will have to move elsewhere because business is "completely dead."
Governor Jan Brewer's office says it's hard to know how many people are leaving because of the law; but she says "if that means that fewer people are breaking the law, that is absolutely an accomplishment."
In 2007, when Arizona passed another law that imposed tougher penalties on businesses that hired illegal aliens - about 100,000 of them left the state.
Here’s my question to you: What's the message if Arizona's new immigration law is causing illegal immigrants to leave the state?
Interested to know which ones made it on air?
Why is Democratic Congress refusing to pass a budget?
FROM CNN's Jack Cafferty:
At a time of skyrocketing federal deficits and a national debt that just passed $13 trillion, the Democrats in Congress can't be bothered to pass a budget for next year.
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That's their job. Congress is supposed to decide how to spend the taxpayers' money. They are mandated to pass a budget; and presumably to stick to it... but that's a whole other story. Yet efforts to pass a budget have stalled in the House because Democrats can't agree on what and how much to cut. See, it's an election year - can't be seen cutting things in an election year.
It's simply outrageous.
Republicans say Democrats are making a "huge mistake" by not passing a budget; and they're right. House Minority Leader John Boehner suggests Pres. Obama should find someone's "ass to kick" when it comes to the budget deficit. He says the GOP will be relentless about this issue.
One Democratic Congressman - Gerry Connolly from Virginia - calls budgets "inside baseball." Suggesting it's not something the public is interested in.
Meanwhile our government just keeps spending and spending - from the Wall Street bailouts to the economic stimulus to the wars in Iraq and Afghanistan and health care reform.
They are bankrupting the country by running up an astronomical bill. The national debt is now estimated to reach $19.6 trillion in less than five years.
It is a debt that can never be repaid. Our government is in the process of destroying this country. And despite warnings of the dire consequences of their actions, they continue undeterred taking us down the road to financial ruin.
Here’s my question to you: Why is the Democratic Congress refusing to pass a budget?
Interested to know which ones made it on air?
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