National Nurses United

Economic Deceit_FNL with art 11/6/10 2:08 PM Page 25 The Economic Deceit Few Discuss CHART BY CALIFORNIA BUDGET PROJECT. SOURCE: MOODY'S ECONOMY.COM T O C TO B E R 2 01 0 Federal Spending on Food Stamp Benefits Has the Biggest "Bang for the Buck" Annual Change in Inflation-Adjusted Gross Domestic Product for Each Dollar Reduction in Federal Tax Revenue or Increase in Federal Spending o listen to the campaign rhetoric that stained much of the 2010 campaign season, you'd think the biggest problems facing our nation are excessive government spending, workers' pensions, and inadequate tax breaks for corporations and wealthy Americans. The few who can break through the conventional wisdom are quickly attacked as advocating class war by the corporate elites, as if there was not an alarming erosion of living standards and shocking growth in income disparity that has undermined the promise of the American dream for so many. Consider two stats from the November 2010 Harper's Index, published by Harper's Magazine. Net domestic profits earned by U.S. corporations since the fourth quarter of 2008—$609 billion. Net decrease in the amount these companies spent on wages and benefits—minus $171 billion. Or as David Cay Johnston reported in a column on tax.com in late October, average wages, median wages, and total wages all declined in 2009—except for those at the very top of the income bracket whose income increased five fold in that time. Over the past quarter century, the richest 1 percent more than doubled their share of total U.S. income from 10 percent to 23 percent, and the average CEO who was paid $27 for every dollar earned by an employee now gets a ratio of about $275 to $1. Healthcare was once considered relatively protected from the deep chill affecting other working people. But no longer. That's evident in these messages sent by RNs to NNU via our website in recent weeks: Saratoga Springs, NY—"We are part of a six-county hospice under the umbrella of a large hospital which is soon to join two other facilities to become the largest healthcare providers in upstate New York. Our hospice nurses are paid 'salary' which once conferred some benefits over hourly pay. Those benefits have been completely stripped so that now we are required to work 10 to 20 hours a week $2.00 $1.80 patient care as we miss the golden opportunity to benefit from the life experience of our long-term nurses who must retire someday soon." But, when the next Congress convenes, the "solutions" to the continuing economic crisis we are likely to hear are not expanding real economic or health security. Instead expect the newly elected legislators to push proposals to privatize or sharply reduce Social Security protections, and new cuts in safety-net programs while even more wealth is shifted to the have-mores who need it least of all. As MSNBC's Rachel Maddow reported in October, Bank of America, CitiBank, and General Electric were three major corporations, among many, that paid exactly nothing in corporate taxes last year, "and you can tell from our politics that politicians are counting on us not understanding that." An analysis by the California Budget Project using Moody's business data clearly identifies what creates economic growth and what doesn't. Contrary to the myths peddled by so many on the right, the federal spending that has the least impact on economic growth, and by implication, jobs is corporate tax cuts, eliminating capital gains taxes, and extending the Bush administration tax cuts for the wealthy. What does promote economic growth, according to the data? Increased infrastructure spending, and funding for unemployment benefits and food stamps—putting money in the pockets of people who will actually spend it, instead of those with enormous wealth who are unlikely to buy their 45th pair of shoes. Or, as CNA/NNU documented in the landmark study done by our research arm, the Institute for Health and Socio Economic Policy last year, guaranteed healthcare for everyone, by expanding Medicare to cover all Americans, which would create 2.6 million new jobs, and a healthier nation. —Staff report $1.69 $1.57 $1.60 $1.41 $1.40 $1.22 $1.24 $1.20 $1.01 $1.00 $1.02 Provide NonRefundable Lump-Sum Tax Rebate Provide AcrosstheBoard Tax Cut $0.90 $0.80 $0.60 $0.40 $0.22 $0.25 $0.32 $0.32 $0.37 $0.20 $0.00 Extend Net Enact Cut Operating Accelerated Corporate Loss Depreciation Tax Rate Carryback Make Make Permanent Permanent Bush Dividend & IncomeCapital Tax Cuts Gains Tax Cuts Provide Housing Tax Credit Provide Provide a Refundable Payroll Lump-Sum Tax Tax Rebate Holiday $1.61 $1.74 Provide Increase Extend Temporarily Temporarily Federal Infra- Unemployment Provide Increase Aid to structure Insurance Federal Food Stamp State Spending Benefits Financing Benefits Governments for WorkShare Programs beyond the 37.5 hours for which we are paid. We have had an increasing workload with decreasing compensation." Baltimore, MD—"Our hospital has laid off the whole Department of Vascular Therapy team. All those girls without a job!" Raleigh, NC—"Instead of cutting management positions, they have hired a consulting firm and forked out millions of dollars to learn how to save money … Their response, 'We are going to learn if we are market competitive,' meaning they are no longer going to offer benefits that result in excellent staff. They have also introduced a 'work matrix' that causes understaffing and constantly decreases patient safety." Felton, CA—"My experience is not one of being laid off, but not hired at all. Currently, the situation on the Central Coast is that new graduate nurses have very few jobs to go to, and as a result, many are returning to previous careers after nursing school, or leaving the state. I was able to locate my first job out of state … Upon returning to Santa Cruz this May, I have filled out close to 70 applications, and no local hospital has called me for an interview despite an excellent resume, and references. "This short-sighted policy will eventually lead to another crisis nursing shortage. In addition, these hiring practices send a clear message to new nurses that we are not of any value, and not worth training. My nursing school has cut back enrollment, and I fear for the next few graduating classes. Where will these nurses go? I feel that this local situation will lead eventually to worsening W W W. N A T I O N A L N U R S E S U N I T E D . O R G N AT I O N A L N U R S E 25

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