News Day: January 12

Franken and Coleman: Together at last As reported in the Strib this morning, backers of Israel’s war on Gaza and opponents both staged events at the Minneapolis JCC yesterday. The Strib reported about 750 inside (supporting the war) and about 250 outside (opposing the war). Supporters included both Norm Coleman and Al Franken, finally finding something they could agree on, and a line-up of other MN politicos, beginning with T-Paw. As the Minnesota Independent reported last week, only Reps. Keith Ellison and Betty McCollum resisted the Congressional tidal wave of support for the war.

Opponents include Jewish, Palestinian, and other voices.

Hybrids ahead! Toyota plans to start selling its new hybrid plug-in car later this year, according to the NYT. The car will be made in Japan, powered by lithium-ion batteries, and sold to fleets, rather than to the general public, which will give them a year to monitor performance and usage and make changes before Chevy starts selling its Volt late in 2010. I want one — but price point and repair records are major considerations, so it will be a while.

How to stimulate an economy The Progressive offers this chart showing the most effective ways to spend economic stimulus money. Top three: food stamps, extending Unemployment Insurance benefits, and infrastructure spending. Bottom three: corporate tax cuts, extending Bush tax cuts, and accelerated depreciation.

That pretty much follows the economic analysis I’ve been reading, which all points to spending on jobs as the most effective use of economic stimulus funds, NOT tax cuts. (See Nobel Prize-winning economist Paul Krugman, for example.) The Progressive‘s chart comes from Mark Zandi, a McCain economic adviser — hardly a radical. Bob Herbert advises:

And the way to create jobs is through infrastructure investments (building and repairing roads, bridges, tunnels and water and sewer systems); and by investing in 21st-century clean energy initiatives, in public transportation systems, and in school construction; and by providing access to health care for the millions who don’t have it.
In other words, by investing in the people and the enormous productive capacity of the United States.

In Minnesota, reports MPR, DFL legislators are talking about a state economic stimulus package. At this point, MPR says, Senate File 1 has only ” vague references to promoting a green economy, augmenting federal funds with state spending and bonding for public works projects, including roads, sewers, parks and trails. But no projects are listed, and the sections that appropriate money and authorizes bonding remain blank.” Republicans, predictably, point to the state’s $4.8 billion budget deficit and say the state can’t afford any economic stimulus spending. The difference is that capital projects are funded by borrowing through issuing state bonds. That means the spending is not part of the regular budget, which must be balanced each year, but instead is premised on future economic growth to pay off the bonds.

Press reports that gas prices are heading back up across the country. I can confirm the trend in the Twin Cities, as I paid $1.59/gallon to fill up less than a week ago, and today the same stations posted $1.85/gallon. Does anybody really believe that supply and demand control gas prices? Or that some combination of Russian-Ukrainian conflict and OPEC production cuts explain the increase? I know that a lot of experts pooh-pooh talk of manipulation of gas prices, but the roller-coaster of the past eight months has convinced me. I don’t understand why, and I don’t know who, but somebody is making money on this craziness.

MN Job Watch: The Strib reports that CostPlus is closing six Minnesota stores. And target=”_blank”>David Brauer reports that the Strib itself is about two weeks away from bankruptcy filing, though it’s not clear that will result in job losses on top of the already-large number that have been cut in the past year and a half. Finance and Commerce quotes the Associated General Contractors of America predicting a 30% cut in construction jobs ahead, but hoping that the economic stimulus package will change this grim prospect. According to Finance and Commerce:

Minnesota Democrat Jim Oberstar, chairman of the House Transportation and Infrastructure Committee, wants the plan to include $85 billion for transportation and public works construction.

The breakdown includes $32.5 billion for highways and bridges, $12 billion for mass transit, $14.275 billion for wastewater treatment facilities and other “environmental” projects, $5 billion for airports and $4.9 billion for passenger rail, among other projects, noted Oberstar spokesman John Schadl.

Oberstar wants the spending to be for projects that are ready to go within 120 days, all the better to quickly stimulate the economy.

Two Minnesota Republicans in Congress–John Kline and Michelle Bachmann–are warning that the economic stimulus plan must not include any earmarks, and “Bachmann referred to Obama’s stimulus plan as ‘a pork barrel’ package.”

Looks like jobseekers should head for McDonald’s, where profits are still rising, according to the NYT.

If you’re looking for a way to take your mind off the economy for a few hours, the Twin Cities Daily Planet recommends First Avenue’s best new bands of 2008, the Guthrie’s Dowling Studio for Henry V, and the West Bank’s Tam Tam African Restaurant. MPR recommends the month-long, first-ever International Chamber Orchestra Festival in St. Paul.