After laying off workers through most of the recovery, city and county governments are adding jobs at the fastest pace in five years, providing support for the economy’s overall payroll gains. Stronger economic growth is driving higher municipal revenue, allowing local governments to add police officers and firefighters, reopen shuttered parks and make long-deferred street repairs. “We’re beginning to see cities and towns coming out of the Great Recession,” says Neil Bomberg, a program director for the National League of Cities. Mark Zandi, chief economist of Moody’s Analytics, notes that total U.S. payroll gains have topped 200,000 each of the past four months.
Our businesses have added:
9.4 million jobs over 51 months ✔
More than 1 million this year ✔
216,000 in May ✔
Local governments are on more solid financial footing in part because of a gradual rise in home values that have boosted property tax collections, says Michael Pagano, dean of the college of urban planning and public affairs at the University of Illinois-Chicago. Earlier this year, Columbus, Ohio, passed an $807 million operating budget, its largest ever, that restores six recreation centers that had been open part-time to full-time status. The city’s finances have been stable since it raised its income tax to 2.5% from 2% in 2009, says Dan Williamson, spokesman for Mayor Michael Coleman.
June data pointed to a robust and accelerated improvement in the performance of the U.S. manufacturing sector. At 57.5 in June, up from 56.4, the seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers’ Index™ (PMI™)1 indicated the strongest upturn in overall business conditions since May 2010. The latest rise in the headline PMI was driven by the fastest output and new orders growth for just over four years. Manufacturing output growth picked up for the third month running to its strongest since April 2010.
Moreover, the average pace of expansion in Q2 was the steepest for any quarter since the survey began in early-2007. Survey respondents generally attributed rising production volumes to improving domestic economic conditions, increased client confidence and a strong pipeline of outstanding work. In line with the trend for output, total new business volumes increased at a sharp and accelerated pace during June.
On This Day: President Obama waits to be introduced in the Blue Room for ABC’s “Prescription for America” town hall conversation on health care at the White House on June 24, 2009 (Photo by Pete Souza)
Today (All Times Eastern)
12:0: The Vice President ceremonially swears in Sylvia Mathews Burwell as Secretary of Health and Human Services
12:45: Josh Earnest briefs the press
6:30: President Obama hosts the 2013 Presidents Cup Team, East Room
Forty-six years after the Fair Housing Act took aim at racial segregation and poverty in America, the federal government has declared the effort half-hearted and is setting out to fix it. Within months, the Obama administration is expected to require local governments to devise new strategies to give people in poor, racially segregated areas better access to jobs, transportation, and, particularly, good schools. At stake locally are tens of millions of dollars in federal grants distributed across the region, from Atlanta to Marietta to Gwinnett County. If governments fail to satisfy the mandate, they could lose that money. To date, few outside of Washington have even heard of the proposal. Where it is known, it tends to draw sharp reactions across the political spectrum:
Liberals, who have waited decades for an administration with moxie enough to confront the issue, cheer it; conservatives blast it as an assault on local communities. The Fair Housing Act of 1968 was one of that decade’s signature civil rights laws. Its intent, confirmed in some subsequent court decisions, was not just to prevent obvious discrimination, such as refusing to sell or rent homes to racial minorities. By that definition, things that may stand in the way of “fair housing” might include zoning that keeps apartments or affordable houses out of good neighborhoods. It might include a lack of public transportation from poor neighborhoods to the areas with jobs that pay well. It might include fewer and shabbier parks or weaker police protection in poor areas than affluent ones, or benign neglect of troubled public schools.
A brief note on a new Elliott Abrams essay in Politico Magazine that appears under the eye-catching headline, “The Man Who Broke the Middle East.” The man in question is not Sykes or Picot or Nasser or Saddam or Khomeini or George W. Bush or Nouri al-Maliki, but Barack Obama. A few points. The first is to note that the Middle East Obama inherited in early 2009 was literally at war—Israel and the Gaza-based Hamas were going at each other hard until nearly the day of Obama’s inauguration. Obama managed to extract himself from that one without breaking the Middle East. In reference to a “contained” Iran, I would only note that Iran in 2009 was moving steadily toward nuclearization, and nothing that the Bush administration, in which Elliott served, had done seemed to be slowing Iran down. Flash forward to today—the Obama administration (with huge help from Congress) implemented a set of sanctions so punishing that it forced Iran into negotiations.
(Obama, it should be said, did a very good job bringing allies on board with this program.) Iran’s nuclear program is currently frozen. The Bush administration never managed to freeze Iran’s nuclear apparatus in place. I’m not optimistic about the prospects for success in these negotiations (neither is Obama), but the president should get credit for leading a campaign that gave a negotiated solution to the nuclear question a fighting chance. It’s also worth noting that when Obama came to power, he discovered that the Bush administration had done no detailed thinking about ways to confront Iran, either militarily or through negotiations. There was rhetoric, but no actual planning. Obama applied himself to this problem in ways that Bush simply did not.
The president of Iraq’s ethnic Kurdish region declared Tuesday that “we are facing a new reality and a new Iraq” as the country considers new leadership for its Shiite-led government as an immediate step to curb a Sunni insurgent rampage. The comments by Kurdish President Massoud Barzani came as he met with visiting U.S. Secretary of State John Kerry, who is pushing the central government in Baghdad to at least adopt new policies that would give more authority to Iraq’s minority Sunnis and Kurds. Kerry has repeatedly said that it’s up to Iraqis — not the U.S. or other nations — to select their leaders. But he also has noted bitterness and growing impatience among all of Iraq’s major sects and ethnic groups with the government of Prime Minister Nouri al-Maliki. Barzani told Kerry that Kurds are seeking “a solution for the crisis that we have witnessed.”
Kerry said at the start of an hour-long private meeting that the Kurdish security forces known as peshmerga have been “really critical” in helping restrain the advance of the Islamic State of Iraq and the Levant, a Sunni insurgency that has overtaken several key areas in Iraq’s west and north, and is pushing the country toward civil war. “This is a very critical time for Iraq, and the government formation challenge is the central challenge that we face,” Kerry said. He said Iraqi leaders must “produce the broad-based, inclusive government that all the Iraqis I have talked to are demanding.
Last week, an NBC/Wall Street Journal poll found President Obama tying his record low approval rating of 41 percent. NBC’s Chuck Todd, referring to another poll result showing that 54 percent of Americans “no longer feel that he is able to lead the country and get the job done,” told the hosts of MSNBC’s “Morning Joe,” “Essentially the public is saying, ‘Your presidency is over.’” But one morsel from the NBC/WSJ poll didn’t fit that narrative: 67 percent of respondents are in favor of the president’s newly announced regulations “to set strict carbon dioxide emission limits on existing coal-fired power plants.” And when the pollsters re-asked the question, after presenting supporting and opposing arguments, including charges of “fewer jobs” and “higher prices,” approval held with a healthy 53 percent to 39 percent margin. That’s a hell of a lot of support for a major presidential initiative from an electorate supposedly no longer listening to the president. What did Obama do right? Adhering to a favorite maxim of U.S. presidents of both parties that it’s remarkable how much you can accomplish if you don’t care who gets the credit, Obama tapped EPA Administrator Gina McCarthy to announce the plan and stump for it in media interviews. By keeping a relatively low-profile, Obama tempered the media’s tendency to polarize everything while dampening conservative backlash, a strategy that previously helped shepherd the Dodd-Frank financial regulation law and the repeal of the military’s Don’t Ask, Don’t Tell policy on gays and lesbians.
While Obama was exhibiting leadership with finesse, Republicans decided to run into a wall. Instead of training their fire on the climate proposal in the days following the June 2 release, they obsessed over freed prisoner of war Bowe Bergdahl. The president has bucked the trend of history and successfully used the bully pulpit to advance another major goal: raising the minimum wage. Anticipating obstinacy from House Republicans, he told the states during his January 2014 State of the Union address, “You don’t have to wait for Congress to act.” He followed up that call with several outside-the-Beltway stump speeches urging states to raise their minimum wage above the federal standard. The stumping is working. So far this year, eight states have raised their minimums and later this week Massachusetts will make it nine. If I were a Republican, I would not be savoring Obama’s 41 percent approval rating and presuming his presidency was done. I would be worried about my party’s 29 percent approval rating, its 15 percent level of support among Latinos and Obama’s plans to take executive action on immigration reform if House Republicans don’t act by July 31. If you think Obama isn’t able to lead on immigration, after what he has done on climate and minimum wage, you haven’t been paying attention.
Greg Sargent: Care About Minors Crossing Border? Then Pass Immigration Reform Now!
Amid all the noise over the crisis of minors crossing the border into South Texas, a basic fact about this debate has gotten lost: The humanitarian disaster we’re now seeing is actually an argument in favor of immigration reform, not against it. Republicans have suggested the crisis proves they are right about Obama’s lawlessness (he cannot be trusted to enforce the law or secure the border, so they shouldn’t make a deal with him) and that the general promise of reform, or “amnesty,” is acting as a magnet for kids. All of this makes it more certain they will not embrace reform this year. But this has it exactly backwards. The crisis underscores the need for reform. In the days ahead, you may see Dems amplify this case. Simon Rosenberg of the New Democrat Network, who has been working on this issue for a decade,
offers this simple explanation for why the crisis is an argument for action: “If Congress wants to help solve the border migrants crisis, the single most consequential thing it could do would be to pass the Senate immigration bill or something similar in the House. Nothing else would do as much to clear up the confusion in Central America about how our system works or do as much to make clear that recent arrivals will not be able to stay under some form of future legalization. Congress will have spoken with a loud and clear voice, making it near impossible for criminal elements south of the border to exploit our current inadequate system for their own ends.”
Hayes Brown: Nobody Thought Syria Would Give Up Its Chemical Weapons. It Just Did.
Last year’s deal to remove all of Syria’s chemical weapons was widely recognized to be extremely ambitious, with a timeframe that few expected would actually be achievable. On Monday, the Organization for the Prohibition of Chemical Weapons (OPCW) announced that beyond many expectations, Syria has turned over all of its declared chemical weapons stockpile for destruction. As the process was ongoing, critics lashed out at the framework negotiated between Russia and the United States last year as a strategic failure. “This removal of chemical weapons…[is] the very thing that has validated [Assad]; it’s the thing that we did to put him in the strongest position he’s been in since this conflict began,” Sen. Bob Corker (R-TN), ranking member of the Senate Foreign Relations Committee said in March. At the announcement of the deal last September, Sens. John McCain (R-AZ) and Lindsey Graham (R-SC) said it “requires a willful suspension of disbelief to see this agreement as anything than the start of a diplomatic blind alley,
and the Obama Administration is being led into it by Bashar Assad and Vladimir Putin.” Still now these weapons are out of hands of Syria, a fact that might not be said if the administration had launched the air strikes it threatened prior to the compromise between Moscow and Washington. And the grounds for legitimacy that the international community needed to bestow upon Assad to facilitate the removal process is gone. With that complete, the international community will now likely return its attention to figuring out how to remove Assad without further emboldening the more extreme militants operating in Syria — including the Islamic State of Iraq and Greater Syria (ISIS) which is currently in possession of several cities across the border in Iraq.