# Economy



Romney's mixed message on government spending and jobs

One of Republican Mitt Romney’s latest television commercials in Iowa asserts that cutting government spending and eliminating the federal deficit will create 130,000 jobs in Iowa. Meanwhile, in states with more military bases and defense sector industry, Romney campaign advertising promises to create hundreds of thousands of jobs by reversing planned cuts in defense spending.

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Danger signs in weak jobs report, political rhetoric

Public-sector jobs continue to decline, and private-sector job growth is not nearly strong enough to make a significant dent in the national unemployment rate, according to the latest monthly jobs report from the U.S. Bureau of Labor Statistics. On the contrary, another recession is well within the range of possibilities for the coming year. Equally worrying, there appears to be no chance of passing another government stimulus package, no matter who wins the presidential election.

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Final Democratic Convention thread: Biden and Obama

President Barack Obama just finished officially accepting the Democratic nomination for president. Normally I am not a fan of his speaking style, but that was one of his best performances in my opinion–better than the celebrated “Yes We Can.” Given how well Michelle Obama and Bill Clinton did earlier this week, I will be surprised if Obama doesn’t get a bump out of this convention. However, I don’t know what the television ratings have been like this week. Far fewer people watched this year’s Republican convention than in 2008.

Any comments about the presidential election are welcome in this thread. I’ll update the post later with more links related to the Iowa delegation and other speeches in the convention hall today. UPDATE: Links and clips are now after the jump.

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More proof the stimulus did its job in Iowa

Voting for the so-called “failed stimulus” has become a stock phrase in Republican attack ads against Congressional Democrats. But as Bleeding Heartland has discussed many times before, the “Great Recession” would have been more devastating without the 2009 American Recovery and Reinvestment Act.

State budget cuts are a huge drag on the economy. Follow me after the jump for a picture that’s worth a thousand words on how a favorite conservative punching bag helped soften the recession’s impact in Iowa.

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Weekend open thread: Labor Day edition (updated)

Hope the Bleeding Heartland community has been enjoying the long holiday weekend. This is an open thread. I’ve enclosed some Labor Day-related links after the jump, including an excerpt from the Iowa Policy Project’s recent report on wage theft, which “deprives low-wage Iowa workers of an estimated $600 million, deprives state and local government of revenue, and puts law-abiding businesses at a competitive disadvantage.”

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Job-creating regulations strike Ottumwa

Some politicians at the federal and state level would have you believe that rules intended to protect public health and the environment are “job-killing regulations.” Congressional Republicans and some Democrats have voted several times to block air quality rules that would force certain industrial plants to retrofit. Although the Obama administration has enacted promising rules to reduce air pollution from coal-fired power plants, President Barack Obama has occasionally validated Republican scaremongering over pollution regulations. For instance, he delayed new smog rules from going into effect in 2011, citing a concern for “reducing regulatory burdens and regulatory uncertainty, particularly as our economy continues to recover.”

The reality of pollution control looks different. It looks like hundreds of construction workers getting a job, and Ottumwa-area businesses reaping the benefits.

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New Rove ad: "He promised change, but things changed for the worse"

Karl Rove’s super-PAC Crossroads GPS launched another television commercial slamming President Barack Obama yesterday, less than a week after its last ad hit tv screens in Iowa and nine other swing states. “Basketball” targets women who initially supported Obama for president but are discouraged about the economy. The video and transcript are after the jump.

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How bad ideas become part of conventional wisdom

Some bad public policy ideas take hold because decision-makers become convinced they will work. Other times, bad ideas gain momentum because politicians who should know better are too scared or lazy to make the case against them.

In what looks like a textbook example of the second scenario, all three Democrats representing Iowa in the U.S. House are now on record supporting some form of constitutional amendment to require a balanced federal budget.

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Romney: "I will lead us out of this debt and spending inferno"

Speaking in Des Moines this afternoon, Mitt Romney promised to lead the country “out of this debt and spending inferno” by reducing federal government spending from 24.3 percent of the country’s gross domestic product to 20 percent of GDP within four years. Romney would address what he called a “prairie fire of debt” by moving some federal programs to the state level or the private sector, repealing “Obamacare,” reforming Medicare and Social Security, and reducing “redundancy and waste” in government programs.

I’ve posted the full prepared text of Romney’s remarks after the jump, along with a few comments.

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Iowa political reaction to BPI plant closures

Beef Products, Inc. announced yesterday that it will permanently close three factories in Waterloo, Iowa, Amarillo, Texas and Garden City, Kansas. BPI suspended operations at those plants in March, following public controversy over lean finely textured beef, which detractors call “pink slime.” The Waterloo facility employed 200 people, who will be jobless effective May 25.

Comments from Governor Terry Branstad, Senator Chuck Grassley, and Representative Bruce Braley are after the jump. Branstad and Grassley criticized what they have called a “smear campaign” against lean finely textured beef. Braley, who previously called for a Congressional investigation into media claims about the product, expressed regret that “the facts have been lost in the furor” over lean finely textured beef.

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New Obama tv ad: You don't quit, and neither does he

President Barack Obama’s campaign launched a new television commercial today in nine swing states, including Iowa. The 60-second spot and annotated transcript are after the jump. This commercial focuses on how the president dealt with the challenges facing him when he took office. Unlike the Obama campaign’s last tv ad, this one does not mention his Republican opponent, Mitt Romney.

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New tv ads running for and against Obama in Iowa

President Barack Obama’s re-election campaign is launching a new television commercial today in Iowa, Virginia, and Ohio. The spot responds to a negative ad by the 501(c)4 group Americans for Prosperity, pivoting to an attack on future Republican nominee Mitt Romney. After the jump I’ve posted video clips and transcripts of those commercials and the latest anti-Obama ad from the 501(c)4 group American Future Fund.

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Loebsack, Boswell back House Republican tax cut bill

The U.S. House approved a bill yesterday to cut taxes by 20 percent for one year for companies with fewer than 500 employees. All the Iowans present voted for the legislation: Republicans Tom Latham (IA-04) and Steve King (IA-05) and Democrats Dave Loebsack (IA-02) and Leonard Boswell (IA-03). Bruce Braley (IA-01) was absent. His staff have not responded to my request for comment on how he would have voted.

The roll call shows that only 18 House Democrats supported this bill. Once again, Progressive Caucus member Loebsack joined Republicans and a small group of primarily Blue Dog Democrats. Bleeding Heartland has discussed this pattern in the context of Loebsack’s votes for a balanced budget constitutional amendment, to block non-existent EPA regulations on farm dust, to make it more difficult for the federal government to regulate small business, and to extend a pay freeze for mostly middle-class federal workers.

After the jump I enclose a statement from King and more details on the Congressional debate over small business tax cuts.

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175 Chickens in 1 Minute?!

(Click here for background on this policy change. A lot of poultry inspectors don't like the idea. - promoted by desmoinesdem)

You’d think the USDA would see the flaw of logic in letting the people who make the food inspect the food and decide if it is actually safe to eat.

The USDA has decided in its infinite wisdom, despite pink slime and a few other debacles of the food industry, to test a program allowing chicken companies to check their own livestock and decide whether or not the chickens are safe to eat.

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Lean finely textured beef/"pink slime" linkfest

Competing rallies about lean finely textured beef took place on the Iowa State University campus yesterday. Governor Terry Branstad, Lieutenant Governor Kim Reynolds, and Representative Steve King were among the speakers at a rally supporting continued use of the additive used in some ground beef. Before that event, some family farmers joined activists at a rally to “to protest the collusion between industrial meat production and our political system.”

It’s time for a new Bleeding Heartland thread about lean finely textured beef, known to detractors as “pink slime.” A dozen links to news and commentary about this controversy are after the jump.

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Iowa Senate approves education reform bill

The Iowa Senate approved a broad education reform bill yesterday on a party-line vote of 26 to 24. Details on Senate File 2284 and the floor debate in the upper chamber are after the jump.

I’ve also included the latest news on efforts to stop Iowa school districts from starting the academic year before September 1. If state lawmakers don’t act on that proposal, Governor Terry Branstad may try to force the issue.

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Reports highlight good news and bad news for Iowa rivers

Recreation on Iowa rivers generates enough economic activity to support about 6,350 jobs, according to a new study by Iowa State University’s Center for Agricultural and Rural Development.

Unfortunately, a new report by Environment Iowa indicates that this state’s rivers are among the country’s most polluted waterways.

Follow me after the jump for excerpts from both reports, published last week.

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Weekend open thread: Spring cleaning

What’s on your mind this weekend, Bleeding Heartland readers? I’m catching up on two stories I didn’t have time to write about during the past week: President Barack Obama’s choice of Jim Yong Kim to be next president of the World Bank, and Vice President Joe Biden’s March 28 visits to Davenport and Sioux City. Kim was born in South Korea but grew up in Muscatine, where his family moved when he was five years old. More clips about Kim and Biden’s latest Iowa trip are after the jump.

Sad news from the south side of Des Moines: Cha Cha, the male lion at the Blank Park Zoo, was euthanized this week after being diagnosed with inoperable liver cancer. He was 16 years old.

This is an open thread; all topics welcome.  

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Iowa politicians mobilize to defend "pink slime"

Iowa politicians from both parties are speaking out today in defense of finely textured beef product, now commonly known as “pink slime.” The U.S. Department of Agriculture announced earlier this month that it will give schools the option of buying ground beef that does not contain the product. Several grocery store chains have recently announced that they will stop carrying ground beef containing the product, prompting Beef Products Inc. to suspend production of finely textured beef product at three plants for 60 days. One of the closed plants is in Waterloo. BPI is leaving its plant in South Sioux City, Nebraska running for now.

Iowa political reaction to the controversy is after the jump.

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Iowans back revised JOBS Act, split over FCC bill

Democrats Bruce Braley (IA-01), Dave Loebsack (IA-02), and Leonard Boswell (IA-03) joined Republicans Tom Latham (IA-04) and Steve King (IA-05) in voting yesterday for the Senate version of a bill designed to help small business start-ups. The five representatives all supported the original version of the bill earlier this month. Republican Chuck Grassley also voted for the bill when it came before the Senate last week, but Democrat Tom Harkin opposed it over concerns it would further deregulate Wall Street and undermine investor protections. After yesterday’s vote, Braley hailed the bipartisan action to “reduce small business restrictions,” while Loebsack highlighted provisions he advocated to promote small businesses owned by womens, veterans, and minorities. I enclose those statements at the end of this post.

Also on March 27, the U.S. House approved a bill designed to weaken the Federal Communications Commission’s ability to regulate. Iowans split on party lines. Follow me after the jump for details on that bill and various amendments debated on the House floor yesterday.

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