2008

Thursday New Tools Feature: The Multi Media

According to a new Deloitte survey on the state of the media, we are now living in a diverse media ecosystem where no one type of media is dominant. Unsurprisingly,

The millennial generation — ages 14 to 25 — is leading this charge now as it accesses content on all sorts of new devices and distribution platforms using a variety of pricing schemes and advertising models. The millennials consume the most media and are more likely to get entertainment from multiple media sources and applications. That’s in contrast to a few decades ago, when media was more expensive and so was consumed most often by older generations with more disposable income...

Millennials are less likely to watch TV or use conventional news sources, and "their preferred way of absorbing content is watching video on the web and handheld devices or listening to music on mobile phones and MP3 music players." The survey also found that "the iPhone has had a big impact on how users communicate, get their news, and entertain themselves. Many young people are using it as a replacement for a laptop." Within the next few years, many more affordable phones will have functionality comparable with the high-end iPhone. 

Along with the Deloitte survey, another just-released study from the Centers for Disease Control and Prevention finds that 18% of households are now cell-phone only, with migration being accelerated by the recession. 

These two studies reinforce NDN's message that understanding and adapting to this new media environment is essential for survival in this political day and age. President-elect Obama's media team understood this, and its "any and all" approach to media, advertising and outreach was in tune with Americans' media consumption. To learn more about how to use these tools effectively, check out our New Politics Institute New Tools campaign, featuring great papers like Go Mobile Now, Buy Cable, Advertise Online, Leverage Social Networks, and Reimagine Video.

Weekly Update on Immigration: DHS Has a Really Rough Week, Oops! Bush Did it Again, New Tools in Immigration

The Minnesota race continues, but don't hold your breath - Democratic candidate Al Franken got a boost on Friday in his bid to unseat Sen. Norm Coleman.  On Friday, the state's election oversight board recommended that each of the state's 87 counties review absentee ballots initially rejected as invalid, and submit amended vote tallies that include any ballots found to be wrongly rejected.  The thing is, the board does not have the authority to require counties to conduct such a review, so it would be up to the candidates to issue legal challenges to force the issue should any county decline to re-examine the legitimacy of the disputed ballots.  The Secretary of State projects that more than 1,500 absentee ballots could be found to have been improperly turned away, and if this turns out to be the case,  Al Franken would have to win a relatively small plurality of those ballots to overcome the razor-thin lead held by Coleman following a hand recount of votes cast in the Senate race.

Judiciary Loses Its Lion - In case you missed it, Sen. Ted Kennedy stepped down from his post on the Committee on the Judiciary.  It will be interesting to see who will start to throw their hat in the ring to succeed Sen. Kennedy, and whether that person can - and will - follow Sen. Kennedy's example in the area of immigration reform. 

Tough Week for DHS:   1) DHS Programs caught midstream in the transition - Among them, the controversial SBInet border security system, construction of it is scheduled to begin in March 2009 in Arizona.  After being known in Congress for cost overruns, malfunctions, gaps in management, and miscommunication with Congress, Alice Lipowicz reports on the challenges ahead for SBInet advocates. 
2) A perfect example of the broken immigration system:
  the cleaning service used by DHS Secretary Chertoff to clean his house had undocumented immigrants working there.  What better example of how broken our immigration system really is, and the urgent need to fix it.  At least the Secretary didn't "knowingly" hire "illegals," as did  Lorraine Henderson, an employee of Customs and Border Protection (emphasis added) - Ms. Henderson reportedly was recorded warning her cleaning lady to be "careful" to not get caught.  Who said DHS didn't care?  A former FEMA employee who was sentenced earlier this year for identity theft, with which he funded shopping sprees, has been handed five plus years in federal prison. 
3) Detention center in Rhode Island will get no more
detainees, pending an inquiry into the treatment, and subsequent death, of a Chinese engineer in that detention center. 
4) A judge's denial of DHS's request for a mid-January decision in the case involving DHS's rule pertaining to no-match letters means that President-elect Obama inherits the prolongued legal dispute over the current administration's push to pressure employers to fire undocumented workers.  It is highly unlikely that an Obama administration would pursue the current flawed DHS rule.  In his platform, Pres-elect Obama has proposed an effective verification system as a part of comprehensive reform.
5) TWIC Delays Upset Workers -
U.S. Transportation Security Administration (TSA) and their contractor, Lockheed Martin, had a great many truckers and port workers upset at them as the workers' new biometric Transportation Worker Identification Cards - which they must possess by Dec. 30 in order to be able to work - were delayed.  Some workers in Baltimore reported to TSA on several occasions to pick up their TWIC cards and were turned away due to the volume of people ahead of them.
6) A GAO report released this week
on the planning and execution improvements needed for the US-VISIT program.    

What Immigration Reform does NOT look like - This week President Bush announced regulatory changes to the H-2A agricultural guestworker program that remove important protections for workers and make it easier for employers to bring in foreign workers.  Once again, this is amnesty for unscrupulous employers, not reform.  

Utah Guest worker program to be implemented - The state legislation, SB81 has received ample criticism, and could very well face challenges in the coming weeks and months, prior to its implementation.  

Henryk Kowalczyk's Huffington Post must-read post on why the Immigration debate is about so much more than just immigration.   

Census Updated American Community Survey - The U.S. Census released its 2008 community survey this week, and reiterates the trend mentioned before: immigrants and minorities are moving away from cities and becoming a larger part of the population in suburbs, etc. 

New Tools in Immigration, too - the Migration Policy Institute (MPI) and the New York University School of Law (NYU) launched a project called "State Responses to Immigration" as a joint effort to provide a free, searchable data tool designed to generate information on all immigration-related bills at the state and local level across the nation.

Hate Crimes - Sadly, another Ecuadorian man was killed in New York by a group of men who viciously attacked him.  Jose Sucuzhanay's homicide is under investigation, and it is helping gather civil rights leaders from accross the country to address the spike in hate crimes against Latinos.  Mexicans at the U.S.-Mexico border also report an increase in hate crimes and agression based on nationality and ethnicity.  We see an important social turning point, immigrants - Hispanic ones in particular - fight back against discrimination.  In Tennessee, legal immigrants who had their documents unlawfully taken from them are filing suit.

Interesting article in the Arizona Daily Star on the border fence.  

New IPC Report - The Immigration Policy Center has compiled a major report on minority and New American voter data, as well as motivating issues in the 2008 election cycle.  The report also explores the outlook for immigration reform.

Employers need education on the effects of immigration, too - According to the latest survey released by Manpower, a private Human Resurces firm, 62% of the 4,804 employers in Mexico who were surveyed described themselves as not particularly concerned with the impact of emigration on the Mexican labor market, the remaining 38% does believe that emigration can have a harmful effect on the Mexican economy and cause a potential "brain drain," as well.  An estimated 8 million 5 hundred thousand Mexicans work outside of Mexico.

About 150,000 immigrants from Michoacan are estimated to return to this Mexican state for the Holidays, although there are no estimates as to how many might remain in Mexico.   It is estimated that immigrants going to Mexico for the Holidays will inject about $5 billion into the Mexican economy.

What World Does the Republican Party Live In? Part II - The David Frum Folly

What World Does the Republican Party Live In? (con.) - David Frum, former George W. Bush Speechwriter, was on NPR this morning discussing how the GOP lost its way in 2008 because it misread its challenge as a "moderate-conservative" one, missing the fact that it is actually a "backward-forward" one.  On that, we are agreed - the GOP agenda completely collapsed in 2004/2005 and the GOP has refused to develop a new agenda that embraces the 21st century reality of the U.S.

But Mr. Frum contradicted himself during the interview: he alleged that minorities are an important part of the advantage held by Democrats, but that Republicans can essentially give up on the Hispanic vote and still win - his contention is that the group the GOP needs to win back in order to win are college graduates and that, basically, the GOP can do just fine without Latinos because we're all poor and populist:  "As populist economically as we need to be to win over this poor group of voters...you'll blow the whole coalition to pieces...because are you going to be the universal state free at the point of consumption health care?"  In fact, winning Hispanics is an integral part of moving "forward" and embracing the facts of a 21st century America.  Mr. Frum also demonstrates his ignorance of the Hispanic community by continuing the erroneous stereotype promoted by hate groups and Lou Dobbs types that Latinos are all uneducated, poor, a burden to our society, and dependent on big government.  In reality Hispanics are the demographic that uses the least amount of government programs (even though many are in fact in the middle or lowest income brackets), with the highest rate of employment, and in many areas they account for economic and labor growth as they are often small business owners.  Also, historically Hispanics split pretty evenly between parties and they have never constituted a loyal "base" for either party.  Not to mention, "Hispanic" concerns are the same as those of the general population, with some nuances.

Frum's contention is yet another example of the GOP's stubborn denial of the racial reality of the country.  Only a few GOP strategists like Rove and Sen. Martinez have attempted to make their party realize that the United States will be a majority "minority" country by 2042, and that support among Hispanics is key to its survival.  If the GOP intends to exist for the next generation, they had better accept - and embrace the new electoral map.  Hispanics have consistently demonstrated their increasing political clout, particularly in this election, when they turned out in record numbers and affected elections in battleground states like Florida, Nevada, New Mexico, Ohio, etc.  Additionally, Hispanics displayed the power in their numbers in non-traditionally "Latino" states because this demographic helped realign this election - i.e., Hispanics helped flip GOP "safe" or deep red states to blue, as was the case in Virginia, North Carolina, and Indiana.

Frum's theory is a tough sell - exit polls show that the election was the closest among high school graduates and college drop-outs, while the higher the degree obtained, the more supportive voters were of Obama (53% of college graduates supported Obama, and the number goes up to 58% among those with postgraduate degrees).  Frum fails to recognize that race relations and the way Obama reflects and embraces the current U.S. demography was just as important in winning over the intellectual "elite."  Millenials and the more educated are increasingly intolerant of intolerance.  Additionally, Hispanics are a part of all income and education groups.  It should also be noted that voters with higher degrees comprise a smaller percentage of the electorate (only 17% of the electorate has PhDs).  Within a few generations (max) the share of Hispanic voters will easily match the 28% of people with a college education who voted in this election.

Another flaw in Frum's argument is that the importance of college grads implies the importance of young adults: 2/3 (or 67%) of all Hispanics who voted in this election are under the age of 45 - he should think about what that means for the future.  Every month, 50,000 Latinos turn 18.  Twenty percent of millenials have at least one immigrant parent. The irrefutable fact is that Hispanics - the fastest growing demographic in the United States - will only play an increasingly pivotal role in national politics in the 21st century. 

The fact is that the GOP built an entire domestic agenda based on the exploitation of fear, racial and otherwise: whether it was Willie Horton, "welfare queens," "tax and spend liberals," and most recently the issue of illegal- immigration.  And GOP leaders are still refusing to accept this fact - as recently as two days ago Mike Huckabee spent a half hour trying to explain his intolerance of certain gay rights to Jon Stewart; mind you, the Daily Show audience is precisely Mr. Krum's "target": college educated, about 18-35 years old.  Republicans like Mr. Frum have to first recognize what has been their tactic in the past and second, think about what they want their future to look like.  If it wants to stay in business, the GOP has to build a Party and coalition suited to the demographic realities of 21st century America

A New Coalition and a New Map

Today, NDN held an event with NDN President Simon Rosenberg, Vice President of NDN Hispanic Programs Andres Ramirez, and new NDN Fellow Morley Winograd to discuss the new 21st century coalition and Electoral College map that President-elect Obama used to win, and the implications for the future of American politics. In particular, the presentations focused on the rise of Millennials and Hispanics and the impact of these ascendant demographic groups.

In his presentation (PowerPoint available in PDF format here), Morley explained why he believes we are at the start of a new cycle of American politics, with a new "civic" generation entering public life for the first time since the 1930s. He argued that young voters' overwhelming support for President-elect Obama was not a flash in the pan, but rather an indication of the generation's political and social attitudes and beliefs -- attidutes and beliefs that, among other things, make them much more likely to self-identify as Democrats than Republicans. 

Andres then gave an excellent presentation (PDF available here) on the growing clout of Latino voters. Like Millennials, Hispanics significantly increased their turnout this election cycle, and voted in huge margins for President-elect Obama. Andres showed how the Latino vote was the decisive factor in four key swing states, and argued that Latinos are also poised to make other states (even Texas!) competetive in future elections. 

Finally, Simon put this all in a larger context, explaining how these developments, culminating in this truly historic election, mark the end of the Southern Strategy as a way to win Presidential elections.   

The Politics of Trading Recession for Inflation

On virtually everything economic, the Bush Administration and much of Congress have become the gang that can't shoot straight -- and their stray bullets could take down a good piece of the nation's economic prospects. They have directed hundreds of billions of taxpayer dollars to financial institutions (and soon, auto companies), and they're getting ready to direct several hundred billion more at the overall economy. In all of these instances, a political drive to display the will and capacity for large actions has overwhelmed deliberate thinking about the specific consequences of those actions. The Obama presidency and the country may pay a big price for this scattershot approach.

The latest example of this dangerous development is the ever-expanding size of the long-awaited next stimulus. We're in a deep and serious recession and a major stimulus was certainly needed -- mainly six months ago, when the Bush Administration and Congress provided tax rebates which were largely saved and had little stimulative effect. Now we know how bad the downturn is turning out to be, and Congress and the Administration-in-waiting is preparing another stimulus of a size commensurate with what's already unfolding, once again, as if this were six or eight months ago. A stimulus providing another $200 billion to $300 billion in new federal spending makes sense, mainly as insurance for another shock to the economy. But a $500 billion to $750 billion package like the one now under discussion will miss its target by many months and mainly indicates that the new rule is that anything goes when you win and damn the consequences.

Congress seems intent on responding to this recession as if everything known about how the business cycle works can be ignored, and the consequences could be serious. The Obama team is focused on long-term investments in 21st century energy and transportation infrastructure, modernizing health care records, expanding training and education, and extending broadband and IT access for poor children. That's all good news for the long-term health of the economy and for the incomes of many households.  The catch is, long-term investments entail not a one-time boost in spending, but continued funding. So when we raise the ante on those investments from $100 billion or so to $300 billion, $400 billion or $500 billion, we're implicitly choosing either to foreswear any other commitments, such as health care, or to embrace another round of dangerously large, structural deficits.

Since the new politics seems to involve never saying no, the likely result of the current course, on top of the extraordinary infusions of credit by the Federal Reserve, is serious inflation once the downturn begins to resolve itself. This pattern is disturbingly similar to the short-sighted and cavalier approach to long-term risks that got the nation into this mess. And it continues to develop alongside the Treasury and Congress' continuing inability to address the rising foreclosures still driving the financial crisis and the credit freeze accelerating the downturn. Yet real responses are within reach: place a moratorium on foreclosures while Fannie Mae and Freddie Mac renegotiate the terms of millions of troubled mortgages and link financial bailout funds to a commitment to use them to extend credit to businesses. If we do that, the economy won't need so much fiscal or monetary stimulus. 

The current approach presents other serious risks. This pattern of fast-rising spending, on top of the bailouts already done and those to come, as well as more tax cuts, could push the U.S. deficit to levels that even the United States will have trouble financing. The Asian and Middle Eastern governments that provide much of our public financing could stop -- either because they'll see inflation coming, too, or because the global downturn and falling oil prices sharply reduce their savings and thus, their ability to lend them to us. The U.S. Treasury will always find the funds it needs, but it may have to pay a lot more to borrow them, which means higher interest rates. So the current approach risks an interest rate spike on top of everything else, which at best would lead to a substandard recovery. With all of its talent and broad public support, the Obama presidency should be able to do a lot better than that.

December 11: NDN to Host Forum on The Economic Crisis and its Impact on Latin America

As the global implications of the current economic crisis become increasingly evident, NDN would like to remind you of the upcoming discussion on "The Current Economic Crisis and Its Impact on Latin America."

This discussion with some of the most recognized economic minds in Latin America is an important addition to NDN's Latin America Policy Forums. It is also an important occasion as we welcome back to D.C. our good friend and collaborator,Joe Garcia, who recently concluded a spirited campaign in Southern Florida. Joe, formerly NDN Vice President for Hispanic Programs, will moderate a panel that includes the Honorable Luis Alberto Moreno, President of the Inter-American Development Bank and former Ambassador of Colombia to the United States, as well as regional policy experts.

Speakers:
Hon. Luis Alberto Moreno - Prior to joining the IDB, Ambassador Moreno served as Colombia's Ambassador to the United States for seven years. Previous to his post as Ambassador, Moreno served a distinguished career in both the public and private sectors in Colombia. He has held a range of leadership positions, such as representative of the Andean Region of WestSphere Capital, Senior Advisor to the Luis Sarmiento Organization, President of Colombia's Industrial Finance Corporation, and Minister of Economic Development.

Dr. Nora Lustig - Dr. Lustig is a native of Argentina who currently resides in Mexico and works with the Colegio de Mexico. She is currently a J.B. and Maurice C. Shapiro Visiting Professor at the George Washington Elliot School for International Affairs. Prior to this, she served as President of the Universidad de las Américas Puebla (UDLAP)in Mexico. Before her post as President of the UDLAP Dr. Lustig was Chief of the Poverty and Inequality Unit at the Inter-American Development Bank. Dr. Lustig has also been a Senior Fellow at the Brookings Institution and Professor of Economics at El Colegio de México.

Mr. Paulo Sotero- Mr. Sotero is currently the Director of the Woodrow Wilson Center's Brazil Institute. For the last 17 years, Mr. Sotero was the Washington Correspondent for Estado de S. Paulo, a leading Brazilian daily newspaper. He has also been a regular commentator and analyst for the BBC radio Portuguese language service, Radio France Internationale, and Radio Eldorado, in Brazil. Since 2003 he has been an adjunct lecturer at Georgetown University both in the Department of Spanish and Portuguese and in the Center for Latin American Studies of the Edmund A. Walsh School of Foreign Service.

Mr. Carlos de Abreu - Mr. de Abreu is currently the Brazilian Embassy's Deputy Chief of Mission and Minister Counselor for Economic Affairs. A Brazilian career diplomat, Minister Counselor de Abreu has also served as Head to the Market Access Division at the Ministry of Foreign Relations, as an advisor to the Minister of Finance, and as an advisor to the Under Secretary for Policy Planning at the Ministry of Foreign Relations. His diplomatic postings also include the Brazilian Embassy in Bolivia, Argentina, and the Consulate General in San Francisco.

This briefing will take place on Thursday, December 11, at 3 p.m.  Please click here for the full event details.  Please RSVP as soon as possible, the event is open, but space is limited.  Refreshments will be served.

To learn more about NDN or to view past  events with the Ambassadors of Mexico, Colombia, Ecuador, and the Vice President of Panama, please visit our website at www.ndn.org.

Gov. Bill Richardson Goes to Mexico

Gov. Bill Richardson made a quick personal trip to Mexico this weekend.  The Commerce Secretary nominee attended a regular meeting at the Universidad de las Américas, Puebla (UDLA)- my alma mater - in his capacity as a member of UDLA's Corporate Advisory BoardThe Governor met with the current President of the UDLA, former Mexican Minister of Foreign Affairs, Luis Ernesto Derbez, as well as a group of prominent executives who serve as advisors to the UDLA.  During the meeting, Gov. Richardson would not answer specific questions with respect to President-elect Obama's plans for NAFTA or any other area of trade or foreign policy, other than to say that the President-elect is very conscious of the importance of the U.S. relationship with Mexico and with Hispanics in general.  Gov. Richardson has not only been a prominent advocate for a more engaged relationship with Latin America, he's been a grassroots activist as well: his history with the UDLA began when he studied abroad there, becoming an alum.  Years later, as a U.S. Congressman, he worked to expand exchanges between students in the U.S. and the UDLA to create a network that would "build better bridges of understanding" between the future generations of the two countries.  More recently, Gov. Richardson was the commencement speaker for the 2003 graduating class, at which time he received an Honoris Causa Doctorate degree from the UDLA.  Gov. Richardson also has a long history working with NDN, speaking about the kind of new partnership that should be forged with Latin America.

Gov. Richardson and former Secretary Derbez

Obama's Emerging Economic Strategy

In his Saturday address this morning, Barack Obama started filling in details of his emerging economic strategy.  Major elements of this speech - massive investment in our infrastructure, putting computers in our schools and making universal connectivity to the internet a national priority, health IT and making our government buildings more energy efficient (for both see here) - should be familiar to NDN readers, as they are ideas NDN has been championing for some time.  

Needless to say we are pleased with the direction the President-Elect is taking, and are anxious to work with him to turn these powerful words into reality next year.  

Here is the full text of this important speech: 

Good morning.

Yesterday, we received another painful reminder of the serious economic challenge our country is facing when we learned that 533,000 jobs were lost in November alone, the single worst month of job loss in over three decades. That puts the total number of jobs lost in this recession at nearly 2 million.

But this isn't about numbers. It's about each of the families those numbers represent. It's about the rising unease and frustration that so many of you are feeling during this holiday season. Will you be able to put your kids through college? Will you be able to afford health care? Will you be able to retire with dignity and security? Will your job or your husband's job or your daughter's job be the next one cut?

These are the questions that keep so many Americans awake at night. But it is not the first time these questions have been asked. We have faced difficult times before, times when our economic destiny seemed to be slipping out of our hands. And at each moment, we have risen to meet the challenge, as one people united by a sense of common purpose. And I know that Americans can rise to the moment once again.

But we need action - and action now. That is why I have asked my economic team to develop an economic recovery plan for both Wall Street and Main Street that will help save or create at least two and a half million jobs, while rebuilding our infrastructure, improving our schools, reducing our dependence on oil, and saving billions of dollars.

We won't do it the old Washington way. We won't just throw money at the problem. We'll measure progress by the reforms we make and the results we achieve - by the jobs we create, by the energy we save, by whether America is more competitive in the world.

Today, I am announcing a few key parts of my plan. First, we will launch a massive effort to make public buildings more energy-efficient. Our government now pays the highest energy bill in the world. We need to change that. We need to upgrade our federal buildings by replacing old heating systems and installing efficient light bulbs. That won't just save you, the American taxpayer, billions of dollars each year. It will put people back to work.

Second, we will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s. We'll invest your precious tax dollars in new and smarter ways, and we'll set a simple rule - use it or lose it. If a state doesn't act quickly to invest in roads and bridges in their communities, they'll lose the money.

Third, my economic recovery plan will launch the most sweeping effort to modernize and upgrade school buildings that this country has ever seen. We will repair broken schools, make them energy-efficient, and put new computers in our classrooms. Because to help our children compete in a 21st century economy, we need to send them to 21st century schools.

As we renew our schools and highways, we'll also renew our information superhighway. It is unacceptable that the United States ranks 15th in the world in broadband adoption. Here, in the country that invented the internet, every child should have the chance to get online, and they'll get that chance when I'm President - because that's how we'll strengthen America's competitiveness in the world.

In addition to connecting our libraries and schools to the internet, we must also ensure that our hospitals are connected to each other through the internet. That is why the economic recovery plan I'm proposing will help modernize our health care system - and that won't just save jobs, it will save lives. We will make sure that every doctor's office and hospital in this country is using cutting edge technology and electronic medical records so that we can cut red tape, prevent medical mistakes, and help save billions of dollars each year.

These are a few parts of the economic recovery plan that I will be rolling out in the coming weeks. When Congress reconvenes in January, I look forward to working with them to pass a plan immediately. We need to act with the urgency this moment demands to save or create at least two and a half million jobs so that the nearly two million Americans who've lost them know that they have a future. And that's exactly what I intend to do as President of the United States.

Thanks for listening.

More Background: Note this passage from an essay Rob Shapiro and I released in early November, A Stimulus for the Long Run

This change should be directed toward creating a 21st century, low-carbon, innovation-driven economy, as the development, spread and efficient use of economic innovations will continue to be the most important factors driving all our future progress in growth, productivity, and incomes. For example, productivity gains are increasingly tied to an employee's capacity to operate effectively in workplaces dense with information and telecommunications technologies. Within a decade, workers who cannot perform in such work environments will be marginalized economically. Therefore, the stimulus should help businesses and workers prepare for the ideas-based economy, through grants to community colleges to keep their computer labs open and staffed in the evenings and on weekends for any adult to walk in and receive free computer training, a plan Obama endorsed as Senator. The stimulus also could include an innovative program to provide inexpensive laptops to every sixth-grader in America and spread broadband installation to schools, local libraries, and human services offices that currently lack it.

There is already a broad consensus on the need to include infrastructure investment in the stimulus, but instead of addressing only roads and bridges, America can also take this opportunity to invest in a new generation of clean infrastructure. The federal government can lead the way, through greening its buildings and vehicle fleets and putting 1,000 megawatts of solar power on its roofs. It also can provide funding to help modernize the electrical grid and build a new generation of light rail systems for urban areas, as well as greater support for research and deployment in renewable energy and energy efficiency technologies, and tax credits and other incentives for greening America's homes and private buildings.

Aside from energy, the other rapidly rising business cost squeezing wages and jobs is health care. To help hold down these costs for the long haul, the stimulus can provide support for hospitals, clinics and physicians to purchase and install the hardware and software for standardized electronic medical records systems. This will serve as a first down payment for 21st century health care reform, and will ultimately reduce costs and promote best-practices at the nation's hospitals.

These are all investments we know we have to make if we intend to make the U.S. economy more efficient, innovative and sustainable. They also are all investments that will ultimate pay for themselves several times over. Congress and President-elect Obama can use this opportunity not only to create more jobs, but to do so in ways that will help drive the development of a real, 21st century workforce and genuine 21st century economic infrastructure. And taking this course by passing a stimulus for change could be an early and important opportunity for him to practice both his new politics and a new form of economic leadership.

The Economist: "Where Has All Your Savings Gone?"

Rough stuff from this week's edition:

FOR American and European savers it has been a lost decade. After two booms and two busts, stockmarkets have earned them nothing, or less, in the past ten years. Low interest rates have made bonds and bank deposits unrewarding too. Were it not for the tax relief they receive, contributors to personal pension plans would have been better off keeping their money under their mattresses. It will be little consolation to Westerners that savers in Japan have known this empty feeling for far longer.

This year's figures are enough to put anybody off saving. American mutual-fund assets have declined by $2.4 trillion-a fifth of their value-since the start of 2008; in Britain, the drop is more than a quarter, or almost £130 billion ($195 billion). The value of global stockmarkets has shrunk by maybe $30 trillion, or roughly half. These figures put the losses on credit-related securities-where the financial crisis began-into the shade.

Nor has the bad news been confined to equities. This year the value of all manner of risky investments, from corporate bonds to commodities to hedge funds, has been clobbered. The belief that diversification into "alternative assets" could prevent investors losing money in bear markets has proved false. And of course housing, which many people counted on for their retirement nest-eggs, has lost value too (see article).

As a result, saving seems like pouring money into a black hole (see article). Any American who has diligently put $100 a month into a domestic equity mutual fund for the past ten years will find his pot worth less than he put into it; a European who did the same has lost a quarter of his money.

Find the rest of this compelling editorial here.

Emergency Stimulus Requires an Emergency Board

New York City - Clean infrastructure stimulus is coming and it is coming fast, perhaps as soon as January 20th, given the new accelerated timetable of President Elect Obama and the Congressional leadership.  For us at NDN, this is an exciting moment, as we have been advocating on behalf of a large green stimulus package that works for the long term as well as the short term for quite some time.

Clean infrastructure stimulus has the ability not only to create jobs in the near term -- particularly in sectors and regions hard hit by the now official recession, the manufacturing belt and the construction industry -- but also to create the clean, modernized physical plant and infrastructure that America needs to ensure our future prosperity.

However, how the stimulus is structured and carried out is as critical as the dollar amount.  On Tuesday, the nation's governors presented President Elect Obama with a list of $176 billion in infrastructure projects ready to go.  However, to get the money out onto the street quickly, moving it through the usual government channels won't work.  Rather, we need to create a new process and structure to get the money out quickly and efficiently.

Dick Ravitch, the former New York City MTA Chairman and head of New York Governor Paterson's new infrastructure commission, knows more about how federal funds flow to the states under ordinary circumstances than most.  Funds normally move slowly.  He argues this is no time for business as usual and his recommendation, an emergency infrastructure board, well supervised, with proper auditing controls and carefully monitored by Congress, is critical to getting funds flowing and jobs starting quickly. 

Rather than allocate money to agencies, Congress should authorize a board to fund valid projects.  Infrastructure projects that get funded should be ones teed up and ready to go with all their zoning and permitting in place so that the only thing missing is funding.  This is a far better way to move the funds out quickly than the usual funding channels that generally go through the Department of Transportation.  At the same time, money should be allocated according to sound, consistent principles to ensure orderly dispensation of funds.  The interests of the people can be adequately addressed by states identifying those that are high priority.

Projects with a green advantage such as public transportation projects, projects that employ green building, water projects and others that move us toward a low carbon economy should go to the head of the line.

As excited as we at NDN are about the speed with which green stimulus is now moving forward, moving money out quickly but also responsibly is vital to making this historic stimulus work.  If the money is spent wastefully, or perceived as being spent wastefully according to political expediency, it will not only be a tragic missed opportunity but also reduce its impact and undermine market confidence. 

Indeed, just yesterday, China's sovereign wealth fund announced it would no longer invest in American banks because of the erratic changes in US policy.  I wrote recently about the problem with the Treasury managing the bailout fund like a hedge fund.  What we need is structure and consistency but a streamlined process to move money out onto the street where it is needed quickly and effectively.

At the same time, we cannot let red tape or ordinary bureaucratic lethargy slow funding when a key purpose of stimulus is to get the money out quickly to create jobs and get the economy moving again.

We don't have that much time to get this right, but we do have a great deal of will as we face up to the severe economic challenges facing the country. An emergency board with emergency powers but also the proper rules in force to guarantee the judicious but expeditious spending of the tax payer's money is a good idea that the incoming Administration and Congress should embrace.

Following are links to some of NDN's work on a clean infrastructure stimulus:

A Vision for a Modernized Electric Grid: Clean Infrastructure for a 21st Century Economy

Understanding the Cleantech Investment Opportunity

A Stimulus for the Long Run

Accelerating the Development of a 21st Century Economy: Investing in Clean Infrastructure

Solar Energy: The Case for Action

Investing in Our Common Future: U.S. Infrastructure

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