The Supreme Court said Monday it will hear a challenge to the health-care overhaul act passed in 2010, with a decision on President Obama’s most controversial domestic achievement likely to come in the summer of his reelection campaign.

The court said it will decide whether the Affordable Care Act exceeded Congress’s power by requiring almost all Americans to have health insurance by 2014 or pay a penalty, a powerful constitutional question that will likely make it the court’s most high-profile ruling since Bush v. Gore in 2000.

As a mark of the importance of the case to the court headed by Chief Justice John G. Roberts Jr., justices said they will hear 51 / 2 hours of oral arguments on the constitutional question and related issues. Oral arguments will most likely be held in March over one or two days, with a decision expected before the court recesses in late June.

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Perhaps it’s easy to see how the two men’s theological differences inform their views of family, but they also yield different understandings of the path to economic advancement.

Mr. Cain’s church subscribes to traditional Christian theology, which sees the black experience in light of scripture. Mr. Obama’s former pastor, Rev. Jeremiah Wright, on the other hand, is known for teaching black liberation theology, which sees scripture in light of the black experience. It seeks to create a direct correlation between the black condition and the light of God’s revelation in Jesus Christ. The freedom they gained from whites is a part of the freedom Jesus promised.

According to Antioch’s website, its early leaders “stressed the dignity of work and honest labor.” By contrast, Trinity’s website emphasizes God’s displeasure with “America’s economic mal-distribution.” It’s not surprising, then, that President Obama would see a government-run jobs program as the key to ending the current economic recession whereas Mr. Cain would look to private industry…

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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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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.”

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The Jewish High Holidays are upon us, so naturally it’s time for the White House to feed political talking points to rabbis.

As has become its annual practice, the Obama administration on Thursday convened a conference call with several hundred rabbis and Jewish leaders. According to a participant on the call, President Obama promoted his jobs bill””noting that those who have been more blessed should pay their fair share””and briefed the rabbis on U.S. efforts to counter the push for a declaration of Palestinian statehood at the United Nations.

I was on another such call recently, the purpose of which””according to the Jewish rabbinical group that invited me””was to help listeners “understand the current state of the economy; learn about the impact of the proposed budget cuts on the poor and disenfranchised; consider the consequences of the increasing gap between the rich and poor in America; and, glean homiletic and textual background to help prepare their High Holiday sermons on this timely topic.”

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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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Shortly after the election of Barack Obama to the presidency in 2008, the cover of Time magazine featured a fabrication of an iconic photograph of Franklin Roosevelt, cigarette holder at a rakish tilt, sitting at the wheel of a convertible. FDR’s face and hands had been displaced by those of Obama’s above a headline speculating on the arrival of a “New New Deal.” That same week, the New Yorker featured an article by George Packer advancing a similar speculation, which was illustrated with a drawing of much the same invention.

What this image in two major American magazines mani-fested was the hope on the left and the fear on the right that Obama would revitalize and extend the New Deal order that had been significantly dismantled by the conservative ascendancy since the mid-1970s (and that “new Democrat” Bill Clinton did little if anything to stem in his eight years in office)….

In sum, FDR’s recovery policies centered on the un­employed, depositors and homeowners. Obama’s recovery policies have centered on employers, bank managers and shareholders, and mortgage lenders. FDR’s more egalitarian policies generated enormous political capital; Obama’s much less egalitarian policies have helped push him to the edge of political bankruptcy.

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On Monday, President Obama arrived at the place that many presidents reach when a recession won’t quit: He went after the rich.

Obama said he planned to increase tax rates on the wealthy, to ensure they “pay their fair share, just like everybody else.” Republicans called Obama’s ideas “class warfare” and suggested that they would hurt the economy by leaving small-business owners with less money to spend.

Their argument sets up a replay of an old American debate occurring across a new political landscape.

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All told, federal taxpayers last year received $1.08 trillion in credits, deductions and other perks while paying $1.09 trillion in income taxes, according to government estimates.

Only about 8 percent of those benefits went to corporations. (The write-off for corporate jets equals about .03 percent of the total.) The bulk went to private households, primarily upper-middle-class families that Obama has vowed to protect from new taxes.

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The dismal state of the economy is the main reason many companies are reluctant to hire workers, and few executives are saying that President Obama’s jobs plan ”” while welcome ”” will change their minds any time soon.

That sentiment was echoed across numerous industries by executives in companies big and small on Friday, underscoring the challenge for the Obama administration as it tries to encourage hiring and perk up the moribund economy.

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Please note that any comments not on the actual content of the speech will not be retained–thank you–KSH.

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The Joint Select Committee on Deficit Reduction, aka super Congress or super committee, is Congress’s answer to its own inability to break the hold of partisan gridlock that took America to the brink of default on Aug. 2, prompting the first-ever downgrade of the nation’s credit rating.

The panel, which on Thursday holds an organizational meeting open to the public, has a sweeping mandate to propose cuts to spending and entitlements and recommend tax reform by Nov. 23. Congress must vote the package up or down ”“ no amendments or filibuster ”“ by Dec. 23, or trigger a $1.2 trillion package of automatic spending cuts, equally divided between defense and domestic spending.

“Never has Washington had an all-or-nothing panel that is empowered and backed by a firm timeline like this one is,” says John Ullyot, a public-affairs consultant in Washington and former GOP Senate staffer. “The starter pistol will fire right after Labor Day.”

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Perhaps Secretary [Hilda] Solis, in her zeal to bolster U.S. manufacturing, could use her influence in high places to urge an NLRB retreat on this absurd action against Boeing — and on similarly misguided administration pandering to organized labor.

After all, as she writes in her column: “In the Charleston area alone, more than 900 manufacturing jobs have been added since July 2010 — an increase of 4.3 percent.”

In other words, President Obama’s labor secretary is bragging, in part, about jobs added in the Charleston area by Boeing, even as President Obama’s NLRB acting general counsel takes Boeing to court for adding those jobs.

And that, by any logical analysis, doesn’t add up.

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The nonfarm payrolls numbers were unchanged in August after a prolonged increase in economic anxiety that began with the brinksmanship in Washington’s debt-ceiling debate and was followed by the country’s loss of its triple-A credit rating, stock market whiplash and renewed concerns about Europe’s sovereign debt.

The jobs figure, a monthly statistical snapshot by the Department of Labor, may appear more negative because it does not include 45,000 Verizon workers who were on strike when the survey was taken.

Economists blamed both sluggish demand for goods and services and the heightened uncertainty over the economy’s direction for the slow pace of job creation, saying political deadlock was in effect creating economic paralysis.

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When President Obama unveils his jobs plan to Congress next week, he’ll have to balance his desire for spending on programs that might stimulate the economy against the nation’s current appetite for cost cutting. We examine the pros, cons and politics of six proposals that might make Obama’s list….

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Federal Reserve Governor Elizabeth Duke called for government efforts to promote the rental of foreclosed homes, saying a recovery in the U.S. housing market hinges on clearing the backlog of such properties.

“We need to deal with the unprecedented number of loans in or still entering the foreclosure pipeline, the disposition of properties acquired through foreclosure, and the effect of a high percentage of distressed sales on home prices,” Duke said in a speech today in Washington. “We, as a nation, currently have a housing market that is so severely out of balance that it is hampering our economic recovery.”

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“The crisis is not over. Not just in Europe is it not over, it is also not over in other regions of the world,” he said, adding the United States had an “enormous” debt problem and lacked the structures to get the problem under control.

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If it sometimes seems as if Washington exists in a totally different economic universe from the rest of us, rest assured: it does. According to Gallup, the District of Columbia is the most economically optimistic part of the country.Every day, the polling organization surveys Americans of all income levels about whether they think current economic conditions are good, and whether the economy is getting better. The results of these two questions make up Gallup’s Economic Confidence Index.

The latest index report shows that the District of Columbia is far more confident in the economy than any state, by a long shot. In every state, most residents think the economy is getting worse; in the nation’s capital, fully 60 percent think the economy is getting better.

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The Obama administration is considering further actions to strengthen the housing market, but the bar is high: plans must help a broad swath of homeowners, stimulate the economy and cost next to nothing.

One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to two people briefed on the administration’s discussions who asked not to be identified because they were not allowed to talk about the information.

A wave of refinancing could be a strong stimulus to the economy, because it would lower consumers’ mortgage bills right away and allow them to spend elsewhere. But such a sweeping change could face opposition from the regulator who oversees Fannie Mae and Freddie Mac, and from investors in government-backed mortgage bonds.

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It will be a relief when the war and the killing are actually over. At the same time, many questions remain. One, on the U.S. side, is whether it was worth it. There is little to regret in the departure from the Libyan and world scene of Mr. Gadhafi. He may have started well with a popular revolution in 1969 that overthrew a corrupt monarchical regime, aligned Libya’s role in the Middle East and Africa more closely with that of its neighbors, and put the country’s oil wealth in Libyan hands.

But Mr. Gadhafi became the perfect illustration of the adage that power corrupts and absolute power corrupts absolutely as his views and behavior, backed by his country’s considerable wealth, became increasingly bizarre, culminating in his agents’ attack on Pan Am 103 over Scotland in 1988, killing 270.

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I have spoken to this many times in public. Those with the capacity to hire American workers”•small businesses as well as large, publicly traded or private”•are immobilized. Not because they lack entrepreneurial zeal or do not wish to grow; not because they can’t access cheap and available credit. Rather, they simply cannot budget or manage for the uncertainty of fiscal and regulatory policy. In an environment where they are already uncertain of potential growth in demand for their goods and services and have yet to see a significant pickup in top-line revenue, there is palpable angst surrounding the cost of doing business. According to my business contacts, the opera buffa of the debt ceiling negotiations compounded this uncertainty, leaving business decisionmakers frozen in their tracks….

…put yourself in the shoes of a business operator. On the revenue side, you have yet to see a robust recovery in demand; growing your top-line revenue is vexing. You have been driving profits or just maintaining your margins through cost reduction and achieving maximum operating efficiency. You have money in your pocket or a banker increasingly willing to give you credit if and when you decide to expand. But you have no idea where the government will be cutting back on spending, what measures will be taken on the taxation front and how all this will affect your cost structure or customer base. Your most likely reaction is to cross your arms, plant your feet and say: “Show me. I am not going to hire new workers or build a new plant until I have been shown what will come out of this agreement.” Moreover, you might now say to yourself, “I understand from the Federal Reserve that I don’t have to worry about the cost of borrowing for another two years. Given that I don’t know how I am going to be hit by whatever new initiatives the Congress will come up with, but I do know that credit will remain cheap through the next election, what incentive do I have to invest and expand now? Why shouldn’t I wait until the sky is clear?”

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Standard and Poor’s, the agency responsible for Friday’s downgrade, merely confirmed what anyone with their eyes open for the past decade or two already knew: The U.S. has a huge and growing debt problem that it is resolutely unwilling to solve.

Not unable. Just unwilling.

Not just politicians, but anyone who buys into their divisive, fanciful rhetoric.

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[Boston University’s Laurence] Kotlikoff explains that America’s “unofficial” payment obligations ”” like Social Security, Medicare and Medicaid benefits ”” jack up the debt figure substantially.

“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap,” he says. “That’s our true indebtedness.”

We don’t hear more about this enormous number, Kotlikoff says, because politicians have chosen their language carefully to keep most of the problem off the books.

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The global economy faces a deep crisis ”” deeper, in some ways, than the panic that struck financial markets in August 2008. At least then there was the prospect of short-term government action: tax cuts and spending increases, quantitative easing, and the like. Those measures averted total meltdown, yet the United States, Europe and Japan failed to restore strong, self-sustaining growth, leaving governments so deeply indebted that aggressive new policy interventions are probably not feasible for now. Indeed, what seems to have sent markets panicking last week is a dawning sense that capitalist democracies may have made more promises than their economies are capable of fulfilling ”” without significant growth-generating structural reforms. Or so it would appear from the recent dramas over bailing out Greece and raising the U.S. debt ceiling.

For Americans, a dead-in-the-water economy would be not only a colossal waste of productive potential but also a human tragedy, as Friday’s announcement of another U.S. unemployment rate above 9 percent cruelly demonstrated. “We need to create a self-sustaining cycle where people are spending, companies are hiring and our economy is growing,” President Obama said.

Well said. But how?….

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