Keep People in Their Homes

A Bump for the Housing Market

The Wall Street Journal today reports possible signs of the beginnings of a return for the housing market:

Cash Buyers Lift Housing

Bargain Hunting Boosts Prices in Depressed Cities; Broader Asset Rebound Spreads

Buyers in markets around the U.S. are snapping up homes in all-cash deals, betting that prices are at or near bottom and breathing life into some of the nation's most battered housing markets.

Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com. In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority.

The percentage of buyers in Phoenix paying cash hit 42% in 2010—more than triple the rate in 2008, according to Raymond James's equity research division.

Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure.

The jump in real-estate purchases made with cash is another sign of the revival of animal spirits in the U.S. economy.

The Dow Jones Industrial Average rose 69.48 points Monday, or 0.6%, to 12161.63, and the Standard & Poor's 500-stock index rose 8.18 points, or 0.6%, to 1319.05.

Monday's announcements of $13 billion in acquisitions lifted stocks on hopes of more deals, share buybacks and dividends as companies regain momentum in an improving economy.

The two stock indexes have soared more than 80% since early March 2009.

The Federal Reserve reported that Americans increased their use of credit cards in December for the first time since August 2008, showing that consumers are getting less skittish about opening their wallets. Investors also were soothed Monday by encouraging signs in Egypt, including last weekend's reopening of banks.

Residential real estate has been slower to bounce back than stocks, but the presence of apparent bargains is luring in newly confident buyers.

A housing recovery is crucial because homes are the single largest asset for many Americans. When housing values collapsed following a decade of declining median income, everyday Americans saw their wealth evaporate. This news on housing is - hopefully - a sign of improvement in the balance sheets of American households.

Immigration News Round Up

A lot of immigration news this week, enjoy:

Washington Post - Headless bodies and other immigration tall tales in Arizona - Dana Milbank

The Arizona governor, seemingly determined to repel every last tourist dollar from her pariah state, has sounded a new alarm about border violence. "Our law enforcement agencies have found bodies in the desert either buried or just lying out there that have been beheaded," she announced on local television.

But those in fear of losing parts north of the neckline can relax. There's not a follicle of evidence to support Brewer's claim.

The Arizona Guardian Web site checked with medical examiners in Arizona's border counties and the coroners said they had never seen an immigration-related beheading. I called and e-mailed Brewer's press office requesting documentation of decapitation; no reply.

Two months ago, the Arizona Republic published an exhaustive report that found that, according to statistics from the FBI and Arizona police agencies, crime in Arizona border towns has been "essentially flat for the past decade." For example, "In 2000, there were 23 rapes, robberies and murders in Nogales, Ariz. Last year, despite nearly a decade of population growth, there were 19 such crimes." The Pima County sheriff reported that "the border has never been more secure."

Arizona Republic - Violence is not up on Arizona border despite Mexican drug war- Dennis Wagner

FBI Uniform Crime Reports and statistics provided by police agencies, in fact, show that the crime rates in Nogales, Douglas, Yuma and other Arizona border towns have remained essentially flat for the past decade, even as drug-related violence has spiraled out of control on the other side of the international line. Statewide, rates of violent crime also are down.

Los Angeles Times - Opinion - What do they really think about immigration? Don't ask

NPR - GOP Faces Internal Divide On Changes To Immigration - Mara Liasson

Some prominent conservatives are speaking out in favor of the kind of comprehensive immigration bill that many Republicans oppose — one that would include border security and then a path to citizenship for undocumented immigrants.

As a leading evangelical conservative, Richard Land's credentials are impeccable. He heads the public policy arm of the Southern Baptist Convention, and from that influential perch he's been urging his fellow conservatives to rethink their opposition to the immigration overhaul.

Colbert Report - Arturo Rodriguez President of UFW

The Colbert Report Mon - Thurs 11:30pm / 10:30c
Arturo Rodriguez
www.colbertnation.com
Colbert Report Full Episodes 2010 Election Fox News

>

Arizona Daily Star - Tucson firms oppose SB 1070 - Kimberly Matas

Nearly 90 Tucson business owners are showing their resistance to SB 1070 - the immigration law set to take effect July 29 - through a new "We Mean Business" campaign.

Participating business owners demonstrate their opposition to the new law with "We Mean Business" signs in the windows of their establishments. Many of the owners agree there is a need for immigration reform; however they do not think the new law is the most effective approach.

NY Daily News - Activists outside MLB offices urge Bud Selig to take stand, move 2011 All-Star Game from Arizona - Michael O'Keeffe

Arizona Daily Star - Fight SB 1070, artists urged - Rhonda Bodfield 

A group of artists, backed by U.S. Rep. Raúl Grijalva, unveiled a new coalition to fight Arizona's new immigration law Thursday, offering an alternative for acts that might otherwise cancel performances in protest.

Grijalva, who called for a limited boycott to pressure the state to reconsider the law, said artists have historically been at the forefront of social change through words and images.

Arizona Republic - Fund tied to SB 1070 nears $500,000 Donations pour in to Brewer's legal-defense repository from across U.S. - Ginger Rough

Residents throughout the United States have contributed nearly half a million dollars to a legal-defense fund set up by Gov. Jan Brewer to help fight lawsuits related to Senate Bill 1070.

As of Thursday, the fund had a nearly $500,000 balance - the result of thousands of contributions from all 50 states and the District of Columbia. The bulk of the money, more than $330,000 of it, has rolled in this week, in the days following the federal government's decision to sue Arizona over the new immigration law.

The Daily Show - Arizona 911 -

The Daily Show With Jon Stewart Mon - Thurs 11p / 10c
Latino 911!
www.thedailyshow.com
Daily Show Full Episodes Political Humor Tea Party

Everyday Americans Now Earning Less Than a Decade Ago

NDN has long pointed out that median household income dropped by roughly a thousand dollars during the Bush era, creating a middle class that was weakened even prior to the great recession. Now, Census Bureau data tells us that household income has again dropped, meaning that everyday Americans have taken a loss over the last decade. From the New York Times:

In another sign of both the recession and the long-term stagnation of middle-class wages, median family incomes in 2008 fell to $50,300, compared with $52,200 the year before. This wiped out the income gains of the previous three years, the report said.

Adjusted for inflation, in fact, median family incomes were lower in 2008 than a decade earlier.

"This is the largest decline in the first year of a recession we've seen since the Census Bureau started collecting data after World War II," said Lawrence Katz, an economist at Harvard University, referring to household incomes. "We've seen a lost decade for the typical American family."

Coupled with rising costs, specifically in health care (I'm sure you've heard about this recently), energy, and pensions, dropping incomes mean that the economic wellbeing of everyday Americans is significantly worse than a decade ago. Add in all the wealth destroyed by the systemic financial meltdown and the collapse of the housing market, and we're talking about an economically crippled American middle class.

The Key to the Fall Debate: Staying Focused on the Economy

The last few months have not been particularly good ones for Democrats.  That's the bad news.  The good news is there a clear roadmap for how they can use the coming months to get back on track, and it revolves around staying relentlessly focused on the economy and the struggle of every day people.  

1) The Lack of Income Growth for Average Families is the Greatest Domestic Challenge Facing America Today.   Depending on how you cut the data, American families have not seen their incomes rise in at least eight, and perhaps, ten years.  Even in the Bush recovery, which was by many measures, robust, median incomes declined, poverty levels increased, debt loads exploded.  The typical American family ended the Bush era making $1,000 less than at the beginning. 

Basic economics tells us when productivity increases wages and incomes rise.  When GDP expands, jobs are created at a certain rate.  Neither of these events took place in the Bush era, leading us here at NDN to argue that there is a large structural change being brought about by globalization that is making it harder for the American economy to create jobs and raise the standard of living of every day people.

That median incomes dropped during a robust economic recovery made the Bush recovery different from any other recovery in American history, and has made the current Great Recession different from other recessions.  The American consumer was already in a very weakened state before the current recession, which is why the recession has been more virulent than many predicted, and why the coming "recovery" might be so anemic.  The economy seems to be going through profound, structural change, making old economic models anachronistic.  We are literally in a "new economy" now, one that is not well understood, and one that is confusing even the President's top advisers. 

Simply put, getting people's incomes up is the most important domestic challenge facing those in power today.  It is not surprising that other issues like health care, energy policy and climate change are being seen through a prism of "will this make my life, my economic struggle better today?" because so many families have been down so long, and things have gotten an awful lot worse this year.   Regardless of what they hope to be graded on by the public, the basket of issues that will do more to determine the success of the President and his Party is both the belief that things are getting better, and the reality that they are for most people. 

2) The Public Believes the Economy Is By Far and Away the Most Important Issue Facing the Nation Today.   In poll after poll this year, the public has made it clear that the economy is their most important issue, with really nothing coming in a strong number two.  The new Pew poll out this week maintains the basic ratio we have seen for months: mid 50s say the economy is number one; 20 percent of the American people say health care is their number one concern; and literally "zero" pick energy (see the chart to the right).

While one could mount an argument that one should not govern by polls, one can also ignore them at their own peril.  The country wants their leaders focusing on what is their number one concern - their ability to make a living and provide for their families in a time of economic transformation - which also happens to be, in this case, the most important domestic issue facing the country. 

My own belief is that one of the reasons the President and the Democrats have seen their poll numbers drop is that they have spent too much time talking about issues of lesser concern to people while the economy has gotten worse.   There is a strong argument to be made that the President and the Democrats have taken their eye of the economic ball, and are paying a price for it.  This doesn't mean the President shouldn't be talking about health care, climate change, education, immigration reform, but they must be addressed in ways that reflects both their perceived and actual importance; and as much as possible discussed in the context of long term and short term benefit for every day people and not abstract concepts like "recovery," "growth," "prosperity," which in this decade are things that have happened to other people. 

We have long believed that the lack of a sufficient governmental response to the increasing struggle of every day people has been the central driver of the volatility in the American electorate in recent years (see here and here).  Given the poll and economic data of recent months it is possible that the conditions which have created this volatility remains, and simply cannot be ignored for too long.

3) The Way Forward - Make The Struggle of Every Day People The Central Focus Of the National Debate.    The great domestic challenge facing President Obama is to ensure that, in this new age of globalization and the "rise of the rest," the country sees not "growth" or "recovery" but prosperity that is broadly shared.  Until incomes and wages are rising again, fostering broad-based prosperity has to be the central organizing principle of center-left politics.  It is a job we should be anxious to take on given our philosophical heritage, and one that we simply must admit is a little harder and more complex than many have led us to believe.  

Luckily, the President has been given three significant events in September to begin to make this rhetorical and governing turn - Labor Day next week, and the G20 and UN General Assembly meetings in late September.  He can use this events to re-knit together his argument, weaving in health reform and energy/climate change (and we believe immigration reform too) along the way.  For there is no broad-based prosperity in 21st century America without health care costs coming down (which has to happen to allow us to cover more people), and a successful transition to a low-carbon economy.  Even though the Congressional committee and legislative process requires these to be separate conversations, in fact they are one conversation, one strategy for 21st century American success, one path forward for this mighty and great nation. 

Vice President Biden's speech about the economy today is a very good start in this needed repositioning.  But much more must be done.  In a recent essay I wrote:

There have been calls from some quarters for a 2nd stimulus plan, an acknowledgment that what the first stimulus has not done enough to stop the current economic deterioration.  This may be necessary, but I think what will need to be done is much more comprehensive than just a new stimulus plan.  Future action could include a much more aggressive action against foreclosures, a more honest assessment of the health of our financial sector, an immediate capping of credit card rates and a rollback of actions taken by credit card issuers in the last few months, a speeding up of the 2010 stimulus spending, a completion of the Doha trade round and a much more aggressive G20 effort to produce a more successful global approach to the global recession, the quick passage of the President's community college proposal, enacting comprehensive immigration reform which will bring new revenues into the federal and state governments while removing some of the downward pressure on wages at the low end of the workforce, and recasting both the President's climate and health care initiatives as efforts which will help stop our downward slide and create future growth.

These are some thoughts on how to re-engage the economic conversation but many other people also have great ideas on what to do now that the specter of a true global depression has been averted, and we have the luxury of talking about what to do next.  Which is why NDN is launching a new series of discussions on the global and American economies.  We begin next week with Dr Jagdish Bhagwati and Dr. Rob Shapiro.  Keep checking back on our site for the next events in this important new series based in Washington, DC but also webcast for anyone to watch no matter where they are.

The bottom line - the recent decline in the President's poll numbers are reversible.  The key is for he and his Party to make the struggle of every day people their number one rhetorical and governing concern.  A "new economy" is emerging in America, and it is not has been kind to most Americans.  Getting incomes and wages up in this new economy of the 21st century is in fact the most important dmoestic challenge facing the country, and one the American people are demanding a new national strategy for.  This fall is the time for the President to make it clear to the American people that he understands their concerns, has a strategy to ensure their success in this new economy, and will make their success the central organizing principle of his Administration until prosperity is once again broadly shared.

Still Must do More to Keep People in Their Homes

From the Financial Times, the slumping economy is causing more trouble for the housing market:

More than one in every eight homeowners with a mortgage was behind on home loan payments or in some stage of foreclosure at the end of the second quarter, as mounting unemployment aggravated the housing crisis, the Mortgage Bankers Association said on Thursday.

The percentage of loans that were in foreclosure or at least one payment past due rose to 13.16 per cent, the highest increase since the MBA began keeping records in 1972 and a jump of more than a percentage point since the first quarter.

Jay Brinkmann, chief economist at the MBA, said signs were growing that mortgage performance is being affected more by unemployment than by the structure of risky home loans, indicating a new stage in the foreclosure crisis that may not be easily addressed by government loan modification programmes.

While the proportion of foreclosures started on borrowers with subprime adjustable-rate mortgages fell dramatically in the second quarter, foreclosure starts on traditional prime fixed-rate loans saw a dramatic increase. Prime fixed-rate loans accounted for one in three foreclosure starts at the end of the second quarter. A year ago they accounted for one in five.

"There has been a shift in the problem from one driven by the types of loans to one driven by macro problems in the economy and drops in house prices," said Mr Brinkmann.

It seems like we still must, as NDN has argued since last September, do more to keep people in their homes.

Housing Market and Producer Prices Show Still Vulnerable Economy

Some not so great economic news on producer prices and housing, courtesy of today's New York Times:

New figures showing a decline in wholesale prices and a drop in new-home construction highlighted how weak the economy remains, even as some optimists declare the recession to be over.

Producer prices fell more than expected in July as the costs of food and energy slipped, the Labor Department reported on Tuesday. The 0.9 percent monthly decline came after three months of increases, and suggested that demand was weak up and down the ladder of production, from consumer goods to intermediate goods like chemicals and rubber to raw materials.

Producer prices declined a record 6.8 percent from last July, when crude oil prices soared above $145 a barrel and pushed the costs of fuels, food and other products sharply higher, before they fell back amid the global financial crisis. The decline in the last 12 months is the largest drop in 60 years, since the government starting keeping such records.

So-called core prices excluding food and energy costs fell 0.1 percent, their second monthly decline of the year.

...

Despite several glimmers of rising prices and increased activity in the housing market, the Commerce Department’s report on housing starts and building permits showed that the market for new homes remained weak with building loans tight and so many foreclosures on the market.

New-home construction fell a seasonally adjusted 1 percent in July from a month earlier, to an annual rate of 581,000, the government said, and building permits were down 1.8 percent from June. Housing completions also dropped, falling 0.9 percent for the month.

The housing piece is not particularly surprising, as that market remains weak overall. At a time when unemployment is so high and houses so diminished in value, now seems an unlikely time for people to sell their homes to move for a new job and therefore have a house built.

While the economy seems to be getting worse more slowly, it is still getting worse and remains incredibly unstable. The one element able to raise producer prices most quickly, a rise in energy prices, could be disastrous.

Tremendous excess capacity remains in the economy, and many of the pieces of the stimulus that have yet to come online, namely infrastructure spending, are needed in the coming months (despite what we may hear on conservative cable networks). These projects will be noticed and helpful, both to the economy and the politicians who made them happen.

David Brooks on the Conservative Economic Legacy

David Brooks has a very good column in the NYTimes today about how we got to where we are today, and the daunting economic challenges ahead.   His sober analysis of our economic situation is part of a growing tide of recent analysis looking beyond the momentary crisises, and which are beginning to move the economic debate beyond the stale, brain-dead bromides of the terribly disapointing age of Bush.  

Here’s one way to look at the politics of our era: We’ve moved from The Age of Leverage to The Great Unwinding.

For about a generation, the U.S. surfed on a growing wave of debt. The ratio of debt-to-personal-disposable income was 55 percent in 1960. Since then, it has more than doubled, reaching 133 percent in 2007. Total credit market debt — throwing in corporate, financial and other borrowing — has risen apace, surging from 143 percent of G.D.P. in 1951 to 350 percent of G.D.P. last year.

Charts that mark these trends are truly horrifying. There is a steady level of debt through most of the 20th century, until the mid-1980s. Then there is a steep accelerating rise to today’s epic levels.

This rise in debt fueled a consumption binge. Consumption as a share of G.D.P. stood at around 62 percent in the mid-1960s, and rose to about 73 percent by 2008. The baby boomers enjoyed an incredible spending binge. Meanwhile the Chinese, Japanese and European economies became reliant on the overextended U.S. consumer. It couldn’t last.

The leverage wave crashed last fall. Facing the possibility of systemic collapse, the government stepped in and replaced private borrowing with public borrowing. The Federal Reserve printed money at incredible rates, and federal spending ballooned. In 2007, the federal deficit was 1.2 percent of G.D.P. Two years later, it’s at 13 percent.

The crisis response more or less worked. Historians will argue about the Paulson-Geithner-Bernanke reaction, but the economy seems to be stabilizing. And now attention turns to the task of the next decade: slowly unwinding the debt that has built up over the past generation.

Americans aren’t borrowing the way they used to, but the accumulated debt is still there. Over the next many years, Americans will have to save more and borrow less. The American economy will have to transition from an economy based on consumption and imports to an economy with a greater balance of business investment and production. A country that has become accustomed to reasonably fast growth and frothy affluence will probably have to adjust to slower growth and less retail fizz.

The economic challenges will be hard. Reuven Glick and Kevin J. Lansing of the San Francisco Fed estimate that Americans will have to increase their household savings rate from 4 percent to 10 percent by 2018 to restore balance. That, they write, will produce “a near-term drag on overall economic activity.” Meanwhile, capital and labor will have to flow from sectors that depend on discretionary consumption to sectors based on research and investment.

But it’s the political challenges that will be most hellacious. Basically, everything that a politician might do to make voters happier in the near term will have horrible long-term consequences. Stimulate the economy too much now and you wind up with ruinous inflation down the road. Preserve failing companies and you wind up with Japanese stagnation. Cushion the decline in living standards with easy money now and you just move from a housing bubble to a commodities bubble.

The members of the political class face a set of monumental tasks...

Read on to see his recommendations, all of which are a little less compelling than his narrative on how we got here.  What is most interesting to me, however, is how Brooks' analysis is itself a complete condemnation of the cultural and economic impact of the recent conservative ascendency.  His story rightly points out that this "Age of Leverage," or as Paul Krugman has called it, "The Great Unraveling," was a manifestation of the Reagan Revolution.  Rather than being conservative in the classic sense, Brooks has correctly and helpfully begun the labeling of this era of our history as it will be known to future generations - a terribly reckless, irresponsible time where our leaders, in the grip of impractical ideologies, failed to do what was required to ensure American greatness and success in the 21st century.  

Digging America out from the hole that been dug by years of reckless, ideological and impractical conservative government remains the greatest governing challenge of this early part of the 21st century, a job that increasingly looks like - given its depth - will last long past the Obama Presidency. 

Finally, for all these reasons, I think it is time for us to move beyond the concept of "recovery" as a goal of our economic strategy.  Who wants to go back to what we had? A time of bubbles and declining wages, of a policy designed for the few at the expense of the many? Obama has begun to move beyond this frame with his recent attempts to use the term "new foundation."  But there is an urgency to this mission - for I think very few Americans are interested in recovering - or going back to - that old economy of the late 20th century and this terribly destructive conservative ascendency.

Keep People in Their Homes

A decade of reckless deregulation, mismanaged regulation and equally reckless private mismanagement has now brought the American and global economies to a crisis point. Investment banks, hedge funds and other financial institutions have borrowed hundreds of billions of dollars to sink into securities widely recognized to entail extraordinary risk, passing that risk along to millions of Americans whose retirement plans, pension funds and money market accounts found their way into funds set up by such mismanaged financial titans as Lehman Brothers, Bear Stearns, Merrill Lynch and AIG. Through it all, the White House, Treasury and Federal Reserve have practiced their own reckless regulatory mismanagement, allowing the gradual accretion of the biggest financial house of cards in history. Now it has caught up with them and the rest of us, and those who let it happen are asking taxpayers to spend hundreds of billions of dollars to clean up this mess.

This crisis is far from over, and its effects are still spreading. We need a broad plan that will actually work to restore financial and economic stability. But those who have had little or no hand in it – America’s taxpayers and most Members of Congress – should not be steamrolled into giving a blank check to those in the Administration who failed to head off this crisis. First, the check they want us to write is unlike any ever written before during financial crises. When Washington last took over the failing assets of private institutions, during the savings and loan bailout, taxpayers first took over the institutions themselves and then sold the assets, while the regulation of the remaining S&Ls was tightened and reformed to preclude another round of the same problems down the road. This time, Congress is being told that it must use taxpayers’ money to buy up the degraded assets of hundreds of financial institutions while they continue operating as private entities and without any guarantee of regulatory changes that will prevent it from happening the next time. That’s a bad bargain and terrible policy.

Second, it’s doubtful that the plan will even work in its own terms. If the Paulson Treasury plans to buy the deteriorating securities at their current, low market values, it may help the institutions holding them to avoid further deterioration, but it won’t reduce the losses they’ve already taken. Consequently, this bailout cannot actually lead us out of the crisis – unless the Treasury plans to pay these institutions above-market prices for the tanking securities they now hold, which would produce the largest direct transfer of money from taxpayers to shareholders and executives ever seen.

Third, the plan does not address the forces which continue to drive this crisis. At the base of the pyramid scheme that has infected our financial markets – underneath the credit default swaps and collateralized debt obligations created with borrowed money to “guarantee” mortgage-backed securities created with more borrowed money, in a housing market swollen by a historic bubble — lies the only real assets in the picture, the mortgaged homes of tens of millions of Americans. On that critical score, the Administration plan offers nothing. The only way to stop the cascading financial crisis consuming not only investment banks, investment funds, mortgage lenders and insurance companies, but also pieces of most Americans’ retirement security, is to stabilize the housing market from which all of the rest arises. The Treasury and the Administration propose to use taxpayers to bail out the institutions which speculated in the securities based on that market. Given the system’s current precarious position, a bail out of some kind cannot be avoided. But our government owes at least as much attention to homeowners facing foreclosure. If the Treasury and Fed had been willing to spend $85 billion on loans to strapped homeowners, as they did to AIG last week, the crisis might never have crested into the conditions that now require a system-wide bailout.

These mortgages are at the root of the crisis. It’s their mounting defaults driving down the overall housing market which has brought venerable banks like Lehman Brothers and Bear Stearns. Before Congress leaves this week or next, it should enact legislation that either provides a mechanism for direct loans to people to avoid foreclosure or allows them to renegotiate their mortgages. This single step will keep untold numbers of people in their homes, help stabilize the housing market, help contain the crisis at one of its critical origins, and thereby help shore up the financial system. Paired with a program to provide more liquidity to financial institutions and an orderly way to write down their failing holdings, this step could finally take us past this crisis.

Even so, only a small share of the costs of this historic mismanagement are apparent today. This financial shock, on top of the housing and energy shocks that preceded it, have almost certainly pushed our economy into recession. That will further reduce the value of the assets held by tens of millions of American through their pension funds, retirement accounts, money market and mutual fund investments. The squeeze will be hardest on the rising numbers of Americans who will also lose their jobs. The need to help these people and millions of others keep their homes is urgent, then, for a host of economic and social reasons.

When Congress returns in December or next year, it will find itself with far fewer resources to finance badly-needed new initiatives in health care, climate change and tax policy. One urgent order of business, however, will be entirely within its capacity: adopt and apply strict and appropriate transparency, capital and other regulatory standards to all financial institutions. And the politicians who hailed the hands-off attitude that enabled this crisis to fester and break out, and who now blame greed instead of their own negligence, must be held accountable.

Globalization Initiative

NDN's Globalization Initiative was established to promote economic growth and restore broad-based prosperity in our globalized economy. Chaired by Dr. Robert Shapiro, Under Secretary of Commerce for Economic Affairs under President Bill Clinton, the program works to address the structural changes affecting the American and global economies. NDN argues that a "lost decade," marked by declining household incomes, remains the most important factor in the American economy and politics.

Our agenda for addressing the structural changes inherent in the era of globalization includes three key components: modernizing our healthcare and energy policies, investing in 21st century skills and infrastructure, and accelerating innovation across the economy. NDN also continues to play a major role in the debate over how to best manage the Great Recession and fosters dialogue around renewing the national consensus on global economic liberalization.


Papers and Memos

A New, Progressive Economic Strategy for America released 5/11: By Robert J. Shapiro
Written over a series of weeks in April 2010, this collection of four pieces lays out a new economic strategy for America that creates broad-based prosperity and addresses the America's great economic challenges in the era of globalization.

 
Building on recent struggles in Congress to do more for the economy than pass the extension of unemployment insurance, NDN outlines a political and policy framework to take steps in 2010 that promote near-term job creation and economic growth.

 
In this white paper, Globalization Initiative Deputy Policy Director Jake Berliner describes the rise of new economic powers and the challenges and opportunities they are presenting the American and global economies.

 
Keeping the Focus on the Struggle of Everyday People: 2010 Edition 1/26/10: By Simon Rosenberg
This memo argues that the nation would benefit from a shift to economic rhetoric and policy geared towards the struggle of everyday Americans. 
Simon argues that the second generation Obama narrative must be a strategic response to the most significant transformation taking place in the world today, what Fareed Zakaria has called the “rise of the rest.” While the true scope of this transformation is only really becoming apparent now, it leaves our new President with the historic opportunity, and tremendous responsibility, to craft a comprehensive strategic response to this global “new politics” of the 21st century.
 
A Lost Decade for Everyday Americans 12/17/09:  By Jake Berliner
In this paper, Jake Berliner, Deputy Policy Director of NDN's Globalization Initiative, argues that everyday Americans are at the end of a “lost decade” and explains the still misunderstood causes of the virulence of the recession.

The Key to the Fall Debate: Staying Focused on the Economy 9/03/09: By Simon Rosenberg
The last few months have not been good ones for Democrats, but there is a road map for how they can get back on track, and it revolves around staying relentlessly focused on the economy and the struggle of every day people.
 
A Stimulus for the Long Run 11/14/08: By Simon Rosenberg and Robert J. Shapiro
Congress and President-elect Obama can use the stimulus not only to create more jobs, but to do so in ways that will drive the development of a 21st century economic infrastructure.

This narrative setting essay argues that leaders must do more to staunch the foreclosure crisis, which was at the heart of the financial meltdown.

The Idea-Based Economy and Globalization 1/23/08: By Robert J. Shapiro
U.S. companies and workers lead the world in developing and applying new intellectual property, a critical advantage in innovation that policymakers should seek to advance in the age of globalization.

Investing in Our Common Future: U.S. Infrastructure 11/13/07: By Michael Moynihan
Michael Moynihan looks at the current state of public investment in infrastructure and proposes a set of measures to restore our national political will and improve funding mechanisms to rebuild and advance U.S. infrastructure.

This presentation details the results of extensive polling conducted by NDN and Benenson Strategy Group in October of 2007 on the American public's opinions about globalization and the changing economy.

NDN Poll: Americans’ Views of the Present and Future Economy - Anxiety and Opportunity 11/6/07: By Pete Brodnitz
NDN, a progressive think tank and advocacy organization, completed a national survey on the economy and globalization on October 15th. This memo is the second of two memos outlining key findings and analysis from the poll.

NDN Poll: Clamoring for Change, Persistent Pessimism, Democrats Dominating on Economic Issues
11/2/07: By Pete Brodnitz
NDN, a progressive think tank and advocacy organization, completed a national survey on the economy and globalization on October 15th. This is the first of two memos outlining key findings and analysis from the poll.

Tapping the Resources of America’s Community Colleges: 7/26/07: By Robert J. Shapiro
Young Americans are increasingly adept at working with computers, but many American workers still lack those skills. Here, we propose a direct new approach to giving U.S. workers the opportunity to develop those skills.

We can address the challenges of the 21st century economy without sacrificing the benefits of globalization and technological advance, principally by expanding public investments in critical areas and reforming health care and energy policies.
 
A Laptop in Every Backpack 5/1/07: By Simon Rosenberg
We believe that America needs to put a laptop in every backpack of every child. We need to commit to a date and grade certain: we suggest 2010 for every sixth grader.
 
Voters Deliver a Mandate for a New Economic Strategy 11/10/06: By Simon Rosenberg
The American people want the new Democratic majorities in the House and Senate to focus and pursue an aggressive strategy to help them and their families get ahead.
 
Crafting a Better CAFTA 6/9/05: By Simon Rosenberg
We believe that an agreement with Central America is so important to how Americans approach the 21st century that we must commit ourselves to help negotiate and pass a better CAFTA.

Major Events

Growing the Next Economy 12/7/11
On Wednesday, December 7th, NDN hosted the Director of Multi-State Initiatives in the Office of Oregon Governor John Kitzhaber and Karl Agne, a partner at GBA Strategies, for a lunchtime discussion about bottom up economic growth, accelerating the ideas that work, and creating the Next Economy. Joining us were 

A Look at Current Global & Domestic Economic Challenges 7/26/11
On Tuesday, July 26th NDN hosted a morning conversation about the economic challenges facing America and the world featuring views from the United States Senate, House and the British House of Commons.

Under Secretary of Commerce for International Trade Francisco J Sanchez at NDN 4/26/11
On Tuesday, April 26, NDN hosted Under Secretary of Commerce for International Trade Francisco J Sanchez. Sanchez was joined by NDN Globalization Initiative Chair and former Under Secretary of Commerce for Economic Affairs Dr. Robert Shapiro.

National Economic Council Deputy Director Jason Furman on Winning the Future 2/22/11
Following the release of the President's budget, Jason Furman, the Principal Deputy Director of the National Economic Council joined NDN for a discussion of the budget, the economy, and the President's strategy to make America competitive in the global economy of the 21st century.

Under Secretary of State for Economic Affairs Robert Hormats on Global Economic Challenges 11/15/10
On November 15, NDN hosted Under Secretary of State for Economic, Energy, and Agricultural Affairs Robert Hormats for an important address on global economic challenges.

US Ambassador to the OECD Karen Kornbluh on Jobs for the Future 7/27/10
On July 27, NDN hosted the United States' Ambassador to the Organization for Economic Cooperation and Development (OECD), Karen Kornbluh. Ambassador Kornbluh, who previously served as Senator Barack Obama's Policy Director and as Deputy Chief of Staff at the Treasury Department, discussed a wide range of issues in creating "Growth and Jobs for the Future," from youth unemployment, to innovation, to U.S. engagement at the OECD.

On Wednesday, June 16, NDN hosted a speech by Congressman Ron Kind (WI-3), Vice-Chair of the New Democrat Coalition and Co-Chair of the NDC Task Force on Innovation and Competitiveness. Kind spoke about the value of innovation to the American economy and the recently released New Dem Agenda for Innovation and Entrepreneurship. Kind was joined by NDN President Simon Rosenberg.

Fred Hochberg, Chairman and President of the Export-Import Bank of the United States, Speaks at NDN. 6/10/10
On June 10 NDN hosted a speech from the Chairman and President of the Export-Import Bank, Fred Hochberg, on the National Export Initiative and the work of the Export-Import Bank. NDN Globalization Initiative Chair Dr. Robert Shapiro moderated a discussion and Q&A following the Chairman's remarks.

Senator Mark Warner on Economic Competitiveness and Innovation 3/18/10
On Thursday, March 18, Senator Mark Warner joined NDN to address America's economic competitiveness in a rapidly changing global economy. He discussed the role of innovation in creating prosperity and offered his perspective on the Senate's work to craft a new economic strategy for America, which includes reforming the nation's health care and financial sectors.

FCIC Chairman Phil Angelides on “Examining Our Financial Past to Secure Our Economic Future” 2/2/10
On Tuesday, February 2, NDN hosted an address from Phil Angelides, Chairman of the Financial Crisis Inquiry Commission. Formerly the Treasurer of the State of California, Mr. Angelides has been charged by Congress to lead the effort examining the causes of the worst financial crisis since the Great Depression. He discussed the commission's work, which began in earnest in February with much anticipated hearings. NDN Globalization Initiative Chair Dr. Robert Shapiro introduced Mr. Angelides and opened the event with contextual remarks.

Blogs

Visit the Globalization Initiative blog for more of our ongoing work.

Visit Globalization Initiative Chair Robert Shapiro's blog.

Visit Globalization Initiative Deputy Policy Director Jake Berliner's blog.

The Globalization Initiative was established to promote economic growth and restore broad-based prosperity in our globalized economy, with a focus on modernizing economic policy, investing in workers and students, and accelerating innovation.

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