While he has addressed the issue throughout his presidency, [President] Obama began late last year to shower even more attention on the importance of lifting middle-class wages. In the days after his address to Congress, he traveled the country to make arguments in favor of new investments in manufacturing, energy and college affordability.

But it is not clear that the measures ”” or any others ”” could compensate for the factors behind the decline of the middle class, including the rise of nations with abundant cheap labor and the development of new technologies that allow companies to operate with far fewer workers. Nor is it clear that the bruised American economy of 2012, with a growing population of retiring workers to support, can sustain a prospering middle class.

“There has been an avalanche of developments that have played out in the last 30 years or so that make it a huge challenge to think about real increases in wages and therefore a sustained rise in incomes,” said Lane Kenworthy, a sociologist at the University of Arizona. “I think, in truth, a lot of people are at a loss for what exactly can be done.”

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Conceived in the heady post-Cold War 1990s, the futuristic fifth-generation [F-35] jet fighter was to be a technological marvel built in a rush and paid for with “peace dividend” dollars.

But now with the economic crash, the fighter is billions over budget and years behind schedule.

Here’s part of the problem: axing the F-35 would eliminate tens of thousands of jobs in 47 states. Few members of Congress are willing to go along.

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The Pentagon budget will actually shrink next year, for the first time since 1998, under a proposal released by the Obama administration that will cut the size of the Army and Marine Corps, trim the number of fighter aircraft and ships, and seek congressional approval for another round of military base closures.

The cuts are part of a broader effort by the Pentagon to decrease its projected spending by $487 billion over the next 10 years, in accordance with a deficit-reduction deal President Obama reached with Congress in August.

The budget is also an attempt to realign the Pentagon’s accounts with Obama’s new military strategy, which he unveiled this month and which seeks to “rebalance” the armed forces toward Asia while maintaining their presence in the Middle East, principally to deter Iran.

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By using his State of the Union speech to draw sharp contrasts with Republicans on such high-profile issues as taxes and the housing market, President Obama opened an election-year debate on the role of government that could be more intense than any in decades.

Warning Congress that “I intend to fight obstruction with action,” he painted a confrontational picture that stands in sharp contrast with the conciliatory approach taken by the last Democrat to seek a second term, Bill Clinton.

In fact, Obama’s strategy more closely resembles that ofGeorge W. Bushin 2004, who used polarizing issues to increase turnout of his supporters and made few concessions to the center. The approach increases the chance that if he wins a second term, Obama could claim a mandate for his program. It also carries more risk of failure in a nation still deeply skeptical of government activism.

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We almost hope this was a political call because, on the substance, there should be no question. Without the pipeline, Canada would still export its bitumen ”” with long-term trends in the global market, it’s far too valuable to keep in the ground ”” but it would go to China. And, as a State Department report found, U.S. refineries would still import low-quality crude ”” just from the Middle East. Stopping the pipeline, then, wouldn’t do anything to reduce global warming, but it would almost certainly require more oil to be transported across oceans in tankers.

Environmentalists and Nebraska politicians say that the route TransCanada proposed might threaten the state’s ecologically sensitive Sand Hills region. But TransCanada has been willing to tweak the route, in consultation with Nebraska officials, even though a government analysis last year concluded that the original one would have “limited adverse environmental impacts.” Surely the Obama administration didn’t have to declare the whole project contrary to the national interest ”” that’s the standard State was supposed to apply ”” and force the company to start all over again.

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What’s an average day like for you these days?

Busy, busy, busy. Stretching at 6:30 a.m. Up at 7 a.m. Breakfast and read the Arizona Daily Star, Arizona Republic and New York Times. Drive to rehab at 8 a.m. Physical, occupational and speech therapy for most of the day. Home, dinner and watch The Daily Show. Then off to bed.

Are you religious? If so, did that help you through this experience?

Yes, I am. Of course it did.

Read it all.Is there any other sphere of life where the latter interaction would qualify as sufficient? It’s personal, its private, we don’t go into those things. As ever, it speaks volumes about cultural assumptions–KSH.

Congressional leaders reached an agreement Thursday to temporarily extend a payroll-tax cut by two months and begin negotiations on a yearlong extension, aides said.

he agreement could end a political stalemate over the payroll-tax cut, which lowered Social Security taxes for 160 million Americans in 2011. Under the tentative agreement, the House will vote again on a two-month extension and the Senate will prepare to negotiate for an extension that will run through 2012.

Aides said House Speaker John Boehner (R, Ohio) has agreed to hold a new vote Friday on extending the tax cut, bowing to increasing pressure to end an impasse that threatened to leave workers with a tax increase next year.

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“Congress’s point of view is that we may be running a risk that this will increase the price of oil but that compared to [the risk of ] Israeli or U.S. military strikes on Iran or a nuclear-armed Iran, the oil market impact of these sanctions will pale in comparison,” says Mark Dubowitz, executive director of the Foundation for the Defense of Democracies.

Energy analyst Daniel Yergin, chairman of IHS Cambridge Energy Research Associates, says there are no easy answers.

“There are only trade-offs, and many of the trade-offs are difficult ones,” Yergin says.

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…unlike the debt-ceiling drama and the destructive impasse over a grand bargain to rein in the spiraling national debt, a stalemate on the payroll tax could be good for Social Security, good for the deficit, and good for disproving the conviction that “temporary” tax cuts must never be allowed to expire.

Let us explain.

As we’ve pointed out previously, the 2-percentage-point cut in the payroll tax (from 6.2% to 4.2%) might give a short-term boost to the economy, but it contributes to Social Security’s long-term insolvency at a time when the retirement program is already paying out more in benefits than it is collecting in taxes. A one-year extension would drive up next year’s federal deficit by more than $100 billion.
The payroll tax issue also raises the question of whether there’s any such thing as a temporary tax cut. At the end of next year, the unaffordable Bush tax cuts are set to expire. Extending the payroll tax cut would set a precedent and give ammunition to those who want another extension of the Bush cuts, adding as much as $5 trillion to deficits over the coming decade.

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A Republican payroll tax cut bill that sailed through the House despite a White House veto threat is dead on arrival in the Senate, and it will soon be time for talks on a final package, the Senate’s top Democrat says….

Reid says he will schedule a vote shortly on the House-passed bill to underscore its irrelevance ”” a vote that should start the clock ticking on what stands as the year’s final, high-stakes partisan faceoff.

“It was dead before it got to the Senate,” Reid said of the House legislation. “The Senate will not pass it. The sooner we demonstrate that, the sooner we can begin serious discussions on how to keep taxes from going up on middle-class Americans.”

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The Obama White House, in its own version of the New Year’s Eve countdown in Times Square, has added a banner to its website ”“ a clock ticking down the seconds to when taxes on the middle class will rise “if Congress doesn’t act.”

That tax hit is the 2 percent payroll tax cut now set to expire at midnight, Dec. 31. If Congress fails to at least extend that tax cut, the Social Security tax rate for employees jumps back to 6.2 percent, up from 4.2 percent. If that happens, the average American taxpayer stands to lose about $1,000 in 2012.

Leaders on both sides of the political aisle in Congress offer assurances that by year’s end the tax break will be extended. As lawmakers head into an election year, the stakes are simply too high to kick that can down the road. But GOP leaders, especially, are running up against strong opposition from the rank-and-file on anything that looks like caving on pledges to reduce deficits, dramatically cut spending, and reject all tax increases (which are an issue in this case because Democrats propose to pay for extending the payroll tax by a tax hike on millionaires.

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On November 1, amidst the political wrangling over jobs and deficits, the House of Representatives took thirty-five minutes to debate what may seem like a tangential issue: whether Congress would re-affirm “In God We Trust” as our national motto. The text of the resolution called this “a principle that was venerated by the founders of this country.” Many, including President Obama, questioned the propriety of the measure in light of more pressing business, while the resolution’s defenders said that times of national turmoil were particularly apt occasions for confirming our faith in God. Despite some grumbling, the re-affirmation passed by an overwhelming majority, and the fact that this measure would appear now shows that the question of faith and our founding remains the most controversial historical issue in American politics….

Faith…reminded Patriots such as [Patrick] Henry that the American people needed virtue to channel their freedom into moral purposes. In a republic where the people were sovereign, Henry believed, people had to maintain public-spirited ethics, or chaos would ensue. We have been freshly reminded of this truth by the rampant malfeasance in the financial sector that helped create our recent economic troubles.

So yes, the founders would have affirmed “In God We Trust.” We do often underestimate the diversity of personal religious beliefs among the leading founders. In Patrick Henry, however, we see a founder who spoke with unusual power and authority to average Americans, for whom faith and liberty were intimately connected.

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This was largely expected, and they did reaffirm their AAA overall rating. They felt “declining confidence” that Congress will agree on timely measures to bring about fiscal policies aimed at reducing indebtedness–KSH.

The number of religious advocacy groups in the nation’s capital has more than tripled since the 1970s, with conservative groups seeing the biggest growth, according to a new report.

Together, faith-based lobbying and advocacy groups spend $390 million a year to influence lawmakers, mobilize supporters and shape public opinion, according to the report, released Monday (Nov. 21) by the Pew Forum on Religion & Public Life.

The report reflects shifting fortunes in religion and politics: the rise of the religious right 35 years ago, the decline of mainline Protestant churches and the outsized presence of the Roman Catholic Church.

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We haven’t had the robust democratic debate about the role of government that lies at the heart of America’s budget stalemate. The truth is that most Democrats and Republicans want to avoid such a debate because it would force them into positions that, regardless of ideology, would be highly unpopular. This does not mean that the congressional supercommittee, charged with making modest cuts in deficits, need fail. There is a basis for honorable compromise; squandering it would confirm politicians’ preference for fighting over governing.

Contrary to much press coverage, the committee’s Republicans opened the door to compromise by abandoning — as they should have — opposition to tax increases. Sen. Pat Toomey of Pennsylvania proposed a tax “reform” that would raise income taxes by $250 billion over a decade. First, he would impose across-the-board reductions of most itemized deductions and use the resulting revenue gains to cut all tax rates. Next, he would adjust the rates for the top two brackets so that they’d be high enough to produce the $250 billion. All the tax increase would fall on people in the top brackets….

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Committee members continued to meet on Capitol Hill to present legislation that could be voted on by the Congress to cut $1,200bn from the budget over 10 years.

But both sides had already begun to blame each other, with Republicans resisting tax rises in any form and Democrats demanding extra revenues be balanced against spending cuts on the grounds of fairness.

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Conceding that talks on a grand budget deal are near failure, Congressional leaders on Sunday pointed fingers at each other as they tried to deflect blame for their inability to figure out a way to lower the federal deficit without having to rely on automated cuts.

The testy exchanges ”” which dominated the Sunday talk shows ”” made clear that leaders in both parties now see the so-called sequester ”” a term meaning an automatic spending cut ”” as the most likely solution to reduce the federal deficit by $1.2 trillion over 10 years, instead of a negotiated package of spending reductions and tax increases, something they have been unable to achieve over the last 10 weeks.

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An interesting retrospective so to speak–read it all.

A special U.S. committee charged with reducing the federal deficit is entering a critical week for reaching a deal but has not considered extending its Nov. 23 deadline, a panel member said Monday.

“Every member understands that time is running out,” House Democrat Chris Van Hollen, a member of the “super committee,” said in an interview with MSNBC’s “Morning Joe” program. “This is the moment to get it (a deal) done if we’re going to get it done.

“The clock’s ticking. We’ve got just a little over two weeks and that includes the time that it will take to put the final touches on any agreement that we might be able to reach,” he said.

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For most of its 75-year history, the program had paid its own way through a dedicated stream of payroll taxes, even generating huge surpluses for the past two decades. But in 2010, under the strain of a recession that caused tax revenue to plummet, the cost of benefits outstripped tax collections for the first time since the early 1980s.

Now, Social Security is sucking money out of the Treasury. This year, it will add a projected $46 billion to the nation’s budget problems, according to projections by system trustees. Replacing cash lost to a one-year payroll tax holiday will require an additional $105 billion. If the payroll tax break is expanded next year, as President Obama has proposed, Social Security will need an extra $267 billion to pay promised benefits.

But while talk about fixing the nation’s finances has grown more urgent, fixing Social Security has largely vanished from the conversation.

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The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts.

The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the U.S. deficit, the bank said in a research note published on Friday.

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Just before the American-led strikes against Libya in March, the Obama administration intensely debated whether to open the mission with a new kind of warfare: a cyberoffensive to disrupt and even disable the Qaddafi government’s air-defense system, which threatened allied warplanes.

While the exact techniques under consideration remain classified, the goal would have been to break through the firewalls of the Libyan government’s computer networks to sever military communications links and prevent the early-warning radars from gathering information and relaying it to missile batteries aiming at NATO warplanes.

But administration officials and even some military officers balked, fearing that it might set a precedent for other nations, in particular Russia or China, to carry out such offensives of their own, and questioning whether the attack could be mounted on such short notice.

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A city court on Tuesday (Oct. 11) dropped charges against a group of religious and civic leaders who were arrested in July during a prayer vigil for the poor in the U.S. Capitol Rotunda.
The vigil, held at the height of the summer’s debt ceiling debate, aimed to stop Congress from cutting funding to programs that benefit the most needy in the U.S. and abroad.

“We are guilty of one charge: the promotion of social righteousness,” said the Rev. J. Herbert Nelson, director of public witness for the Presbyterian Church (USA).

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Plenty of lawmakers are against tax breaks and so-called loopholes. Unless, of course, they personally helped create them.

The Senate Republican leader, Mitch McConnell, for instance, says he is open to ending tax breaks for special interests. But when it comes to a tax break he secured in 2008 for the owners of thoroughbred racehorses, he argues that the measure is essential for the protection of jobs in his home state of Kentucky.

Senator John Kerry, Democrat of Massachusetts, says he too wants to eliminate such breaks, except when it comes to beer. He is one of the main supporters of a proposal that would cut taxes for small beer makers like the Samuel Adams Brewery in Boston.

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There is an optimistic scenario for the U.S. economy: Europe gets its act together. The pace of world growth quickens, igniting demand for U.S. exports. American politicians agree to a credible compromise that gives the economy a fiscal boost now and restrains deficits later. The housing market turns up. Relieved businesses hire. Relieved consumers spend.

But there are at least two unpleasant scenarios: One is that Europe becomes the epicenter of a financial earthquake on the scale of the crash of 1929 or Lehman Brothers 2008. The other is that Europe muddles through, but the U.S. stagnates for another five years, mired in slow growth, high unemployment and ugly politics.

No one would intentionally choose the second or third, yet policy makers look more likely to stumble into one of those holes than find a path to the happier ending.

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The independent and bipartisan U.S. Commission on International Religious Freedom could be forced to shut its doors if the Senate does not vote by week’s end to reauthorize the panel.

The commission appears to be in legislative limbo after the House voted Sept. 15 to extend the panel for an additional two years. The commission is authorized through Sept. 30, but both houses of Congress are scheduled to be in recess starting Monday (Sept. 26).

Before the House vote, Rep. Frank Wolf, R-Va., urged fellow members to support the watchdog panel that monitors the persecution of religious minorities across the globe. But he worried that the Senate might not act in time.

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The Obama Administration’s fight against the Defense of Marriage Act (DOMA), which defines marriage as between one man and one woman, will undermine marriage and create a serious breach of Church-State relations, Archbishop Timothy Dolan, president of the U.S. Conference of Catholic Bishops, wrote in a September 20 letter to President Barack Obama, The Administration’s assault on DOMA, Archbishop Dolan said, will “precipitate a national conflict between Church and State of enormous proportions and to the detriment of both institutions.”

Read it all and follow the link to the full letter.

The government’s backing of Solyndra, which could cost taxpayers more than a half-billion dollars, came as the politically well-connected business began an extensive lobbying campaign that appears to have blinded government officials to the company’s financial condition and the risks of the investment, according to a review of government documents and interviews with administration officials and industry analysts.

While no evidence has emerged that political favoritism played a role in what administration officials assert were merit-based decisions, Solyndra drew plenty of high-level attention. Its lobbyists corresponded frequently and met at least three times with an aide to a top White House official, Valerie B. Jarrett, to push for loans, tax breaks and other government assistance.

Read it all. Also, see James Pethokoukis–“Solyndra, the logical endpoint of Obamanomics” which may be found over here.

Americans’ pessimism about the economy and its future is deepening, a USA TODAY/Gallup Poll finds, and they are increasingly willing to hold President Obama responsible for hard times.

Eight of 10 say the economy is in a recession, and nearly as many say it hasn’t improved over the past year. Even more ominous: Six in 10 predict the economy a year from now will be the same or worse than today, a downturn from the public’s views last year and the year before.

That gloomy outlook, economists say, can become a self-fulfilling prophesy.

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Read it all and the full letter may be found there.