labor

Could GOP Sanctions on Europe Tank the Economy and Elect Romney?

Remember, "It's the Economy, Stupid?" So how come Democrats in Congress - over the objections of the Obama Administration - are helping Republicans press sanctions on Europeans who buy oil from Iran - sanctions that would increase unemployment in the U.S. during the 2012 campaign?

 

The National Defense Authorization Act now contains a Senate amendment by Republican Senator Mark Kirk - supported by many Democrats in Congress - that would sanction European banks and companies that do business with Iran's Central Bank, in order to stop Europeans from buying Iranian oil. This is a big deal, because Iran is the world's fifth-largest oil exporter, and blocking Iranian oil exports to Europe would raise the price of oil, in Europe and in the United States.

 

Kirk's amendment would hurt the U.S. economy, at a time when economic contraction in Europe could push the U.S. back into recession.

 

Is fear of the economic blowback of the sanctions on Europe that Kirk wants to impose justified? Many Europeans seem to think so.

 

On Tuesday, Reuters reported:

 

 

The European Union is becoming skeptical about slapping sanctions on imports of Iranian oil, diplomats and traders say, as awareness grows that the embargo could damage its own economy without doing much to undercut to Iran's oil revenues.

[...]
"Maybe the aim of sanctions is to help Italy, Spain and Greece to collapse and make the EU a smaller club," one trader joked.

 

The remark reflects the growing unease that EU sanctions would hit hardest some of the continent's weakest economies, because Iranian oil provides the highest share of their needs, not to mention the rest of the bloc.

 

The Minimum Wage and the Coup in Honduras

The coup in Honduras - and the at best grudging and vacillating support in Washington for the restoration of President Zelaya - has thrown into stark relief a fundamental fault line in Latin America and a moral black hole in U.S. policy toward the region.

What is the minimum wage which a worker shall be paid for a day's labor?

Supporters of the coup have tried to trick Americans into believing that President Zelaya was ousted by the Honduran military because he broke the law. But this is nonsense. A Honduran bishop told Catholic News Service,

 

"Some say Manuel Zelaya threatened democracy by proposing a constitutional assembly. But the poor of Honduras know that Zelaya raised the minimum salary. That's what they understand. They know he defended the poor by sharing money with mayors and small towns. That's why they are out in the streets closing highways and protesting (to demand Zelaya's return)"

This is why the greedy, self-absorbed Honduran elite turned against President Zelaya: because he was pursuing policies in the interests of the majority. The Washington Post noted in mid-July,

 

To many poor Hondurans, deposed president Manuel "Mel" Zelaya was a trailblazing ally who scrapped school tuitions, raised the minimum wage and took on big business.

In a statement condemning support for the coup by U.S. business groups, the International Textile, Garment and Leather Workers' Federation expressed its concern that under the coup regime, there are

 

The Day They Arrested President Roosevelt

What a dark day for American democracy it was - February 5, 1937, the day they arrested President Roosevelt.

The pretext for this assault on democracy was President Roosevelt's proposal of the Judiciary Reorganization Bill of 1937, which would have allowed President Roosevelt to appoint more members to the Supreme Court, which had blocked New Deal measures President Roosevelt had introduced to try to bring America out of the Great Depression. Supporters of the New Deal were particularly galled by the Supreme Court's decision the previous year throwing out New York's minimum wage law.

But some of President Roosevelt's opponents in Congress (including many conservative Democrats), the Supreme Court, and the military claimed the proposed bill was an assault on the Constitution - even though the Constitution doesn't say how many Supreme Court justices there should be, and Congress had changed the number of Supreme Court Justices many times in the past - and that Roosevelt's move was a dangerous power grab. So dangerous, in fact, that Roosevelt's proposal could not even be considered in Congress. Roosevelt's opponents claimed that he had violated the Constitution by even suggesting the idea, and had to be removed from office immediately; that Roosevelt and his supporters were such a threat to the established order that due process had to be dispensed with - if Roosevelt were put in prison, maybe there would be riots.

Therefore, on the morning of February 5, soldiers under the command of General Smedley Butler arrested President Roosevelt and deported him to Canada, still in his pajamas.