Tag: economic loss

Self-driving cars are a threat to the American way of life

President Obama recently pinned an op-ed for the Pittsburgh Post-Gazette praising self-driving cars as “an emerging reality with the potential to transform the way we live”.

Personally, I believe that self-driving cars are a grave threat to the American way of life.

Thousands of Americans are employed as taxi drivers, pizza deliverers, and in other similar professions. If self-driving cars were to become the norm, you can kiss thousands of American jobs, many of which are among the few American jobs nowadays that do not require a college degree, goodbye. Their jobs would be effectively replaced by computers manufactured in China or other foreign countries.

Also, who would want to watch a NASCAR race in which actual race car drivers are replaced by computer-driven cars? NASCAR would no longer be an actual sport if computers replaced drivers; instead, it would become effectively as scripted as WWE, but without the soap opera-esque storylines to keep the audience engaged. There’s a lot more entertainment watching real race car drivers compete against each other than computers competing against each other.

Another instance where self-driving vehicles are a threat to the American way of life is the all-American family farm. If tractors, combines, and other motorized farm implements are replaced with computer-driven machines, then it would be a lot easier for large agribusiness corporations like Bayer (which recently acquired Monsanto) to sweep in and take over family farms across the country.

While Obama has cited elderly people and disabled people (although I’m not elderly (I’m 26 years of age), I have Asperger’s syndrome, and I don’t drive) as two groups of people that might benefit from self-driving cars, the sobering reality is that there’s a lot more people who would be negatively impacted than those who would be positively impacted by self-driving vehicles. In fact, many of those who could benefit from self-driving cars don’t have cell phones that would be needed for them to get a ride in a self-driving car, either for cost reasons (most elderly and disabled people are very poor), or the nature of their disability makes it virtually impossible for them to operate a cell phone.

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Illinois State Representatives should vote NO on wage theft bill

On Thursday, the Democratic-controlled Illinois House of Representatives is scheduled to vote on whether or not Illinois should become a right-to-work state, or what I like to call a wage theft state. In a wage theft state, non-union workers at unionized workplaces would be legally allowed to steal wages and other benefits negotiated by the union without paying union dues or some other form of payment. Republican Governor Bruce Rauner has publicly called for legislation allowing for local governments to enact local wage theft ordinances, which Democratic Attorney General Lisa Madigan believes would violate federal labor laws.

I strongly encourage members of the Illinois General Assembly to vote NO on the Bruce Rauner-Mike Madigan wage theft scheme.

While Madigan, the Democratic state house speaker, hasn’t advocated for the passage of the legislation, the fact that he’s scheduled a vote on wage theft is downright alarming. Wage theft legislation would do absolutely nothing to improve our state’s economy or fix our state’s fiscal problems. Instead, it would drive down wages, make workplaces less safe, create an even bigger burden on taxpayers, cost our state thousands of jobs, and severely hurt our state’s economy. That’s because when wages are driven down, workers have less to spend on groceries, gasoline, and other goods and services, resulting in both the state and the private sector making less revenue.

Bruce Rauner wants to put Illinois in the same league as third-world countries like Vietnam and Bangladesh, from an economic standpoint. Illinoisans simply can not afford Rauner’s corporate agenda of driving down wages, busting unions, and destroying what little of our state’s middle class remains.

Bruce Rauner’s plan to allow Illinois communities to enact employee wage and benefit theft zones would crater the Illinois economy

Bruce Rauner is touting right-wing lies about wages, unionization, and the economy in his crusade to drive down wages, bust unions, and destroy the already weak economy in Illinois.

A key part of Rauner’s plan to bust unions in Illinois is to divide and conquer the state by allowing local communities in Illinois to vote on whether or not to enact local versions of so-called “right-to-work” laws, which allow non-union workers to benefit from wages, health insurance, retirement plans, safer working conditions, and other benefits of union contracts without either joining or paying dues to the union that negotiated the contracts. While Rauner would call areas in Illinois that vote to implement so-called “right-to-work” laws on a local basis “employee empowerment zones”, in reality, so-called “right-to-work” laws don’t empower employees, instead, they allow non-union employees to effectively steal wages and benefits from union-negotiated contracts. If Rauner were honest about his scheme to bust unions at the local level in Illinois, he’d call areas of the state that approved of his scheme “employee wage and benefit theft zones”, and I strongly encourage Illinois Democrats and progressives to refer to Rauner’s scheme as such.

Another claim that Rauner has made about his scheme to bust unions in Illinois at the local level is that, if one were to drive down wages and other costs that businesses incur, more jobs and businesses would be created. That’s simply not true. In fact, when wages are driven down and unions are busted, the overall economy craters because workers who lose pay and benefits as a result of lower wages and no union representation aren’t able to spend as much money on groceries, gasoline, household goods, and other types of goods and services. This results in businesses losing customers and revenue, and, in many cases, forced to close and leave their employees without a job, which starts a vicious cycle of economic loss. Additionally, very few people who couldn’t afford to start a new business with current labor costs would be able to afford to start a new business with lower labor costs, so any economic gains wouldn’t even come close to offsetting the massive economic loss that driving down wages and busting unions would cause.

Regarding the areas of Illinois that would likely enact employee wage and benefit theft zones if a state law allowing local areas of the state to do so were enacted, if the legislation allowed counties to make entire counties employee wage and benefit theft zones and allowed local municipalities (cities, towns, villages, and townships) to make their jurisdictions employee wage and benefit theft zones in counties that haven’t enacted an ordinance or passed a referendum to make the entire county an employee wage and benefit theft zone, most, if not all, of the collar counties and downstate counties would probably become employee wage and benefit theft zones, as well as a few suburban areas of Cook County. The amount of economic damage that this would cause would be massive, and this would badly divide the state.

The truth of the matter is that Bruce Rauner’s plan to allow local communities to enact employee wage and benefit theft zones here in Illinois would probably cause just as much economic damage as enacting a bill to turn the entire state into an employee wage and benefit theft zone (i.e., a statewide “right-to-work” bill) would.

How Republicans are going to turn the Congressional Budget Office into a right-wing propaganda outfit

Anytime Congress needs to obtain a cost estimate, an economic impact analysis, and/or other types of budget and/or economic information, Congress is legally required to turn to its own internal think tank on economic issues, the officially non-partisan Congressional Budget Office (CBO).

However, the Republicans that won control of both houses of Congress in last November’s elections are about to turn the CBO into a part of their far-right propaganda machine that will probably be one of the most hyperpartisan government agencies in the entire country.

The director of the CBO is currently Douglas Elmendorf, who has run the CBO quite well for the past several years, having originally been appointed by a Congress controlled completely by Democrats in 2009 and then continuing on as CBO director even after Republicans took control of the House after the 2010 midterm elections. However, with Republicans now in control of both the House and the Senate, the House Speaker (more than likely to be John Boehner) and the Senate President Pro Tempore (which will be Orrin Hatch), who are jointly responsible for appointing the CBO director, will almost certainly get rid of Elmendorf and replace him with a new CBO director that will likely be very conservative and use the CBO to spew right-wing lies about the economy and the country’s finances.

What the Republicans want to do is appoint a new CBO director who will turn the officially non-partisan agency into a right-wing, non-partisan in name only agency and use dynamic scoring, a disproven economic theory that is based on the falsehood that cutting taxes for the wealthy results in more revenue to the federal government:

AS Republicans take control of Congress this month, at the top of their to-do list is changing how the government measures the impact of tax cuts on federal revenue: namely, to switch from so-called static scoring to “dynamic” scoring. While seemingly arcane, the change could have significant, negative consequences for enacting sustainable, long-term fiscal policies.

[…]

Such proponents (of dynamic scoring) argue that conventional projections are skewed against tax cuts, because they do not consider that cutting taxes could lead to higher economic output, which would make up at least some of the lost revenues. They maintain that dynamic scoring will, therefore, be both more neutral and more accurate than current methodologies.

In reality, the whole concept of dynamic scoring is built on a mountain of lies and false assumptions about how the economy and taxation work:

But the bigger problems lie deeper. Federal deficits are on an unsustainable path (as it happens, because of undertaxation, not excessive spending). Simply cutting taxes against the headwind of structural deficits leads to lower growth, as government borrowing soaks up an ever-increasing share of savings.

The most optimistic dynamic models get around this by assuming that the world today is in fiscal equilibrium, where the deficit does not grow continuously as a percentage of gross domestic product. But that’s not true. If you add the reality of spiraling deficits into those models, they don’t work.

To make these models work, scorekeepers must arbitrarily assume either that we tax more and spend less today than is really the case…or assume that a tax cut today will be followed by a spending cut or tax increase tomorrow. Economists describe such a move as “making counterfactual assumptions”; the rest of us call it “making stuff up.”

In reality, dynamic scoring encourages absurd economic policies that would decrease the amount of revenue the federal government receives, drive up the federal budget deficit and national debt, hurt economic growth, and wreck our country’s economy. The fact that Republicans want to turn the officially non-partisan Congressional Budget Office into a part of the hyperpartisan right-wing propaganda machine in order to lie to the American people about how legislation effects the economy and our country’s finances absolutely scares me, and Democrats need to start attacking the CBO at every opportunity if they do start acting like a right-wing organization.