A Politician-Created Crisis: Why Did Congress Waste Six Months?
The House Republican strategy to link a normally routine increase in the nation’s debt limit with a crusade to slash spending has already had a high cost, threatening the nation’s credit rating and making the United States look dysfunctional and incompetent to the rest of the world.
But that’s not the most awful thing about it.
What’s even worse is that this entirely artificial, politician-created crisis has kept government from doing what taxpayers expect it to do: Solve the problems citizens care about.
The most obvious problem is unemployment. The best way, short term, to drive the deficit down is to spur growth and get Americans back to work. Has anyone noticed that Americans with jobs can provide for their families, put money into the economy — and, oh yes, pay taxes that increase revenue and thus cut the deficit?
There is no mystery about the steps government could take. Ramping up public works spending is a twofer: It creates jobs upfront and provides the nation’s businesses and workers the ways and means to boost their own productivity down the road.
Wise infrastructure spending can save energy. And when public works investments are part of metropolitan plans for smarter growth, they can also ease congestion and reduce commuter times, giving our citizens back valuable minutes or hours they waste in traffic. If you want a pro-family policy, this is it.
State and local budgets all across the country are a shambles. Teachers, police, firefighters, librarians and other public servants are being laid off. As the New York Times’ David Leonhardt pointed out recently, even as the private economy has been adding jobs, if too slowly, state and local governments have hemorrhaged about half a million jobs in two years.
President Obama knows this. “As we’ve seen that federal support for states diminish, you’ve seen the biggest job losses in the public sector,” he said in his July 11 news conference. “So my strong preference would be for us to figure out ways that we can continue to provide help across the board.”
So why not do it? “I’m operating within some political constraints here,” Obama explained, “because whatever I do has to go through the House of Representatives.”
Excuse me, Mr. President, but if you believe in this policy, why not propose it and fight for it? Leadership on jobs is your central job right now. Let the Republicans explain why they want more cops and teachers let go, or local taxes to rise.
We should also extend the payroll tax reduction instituted last year and unemployment insurance. Why so little discussion of how balky Republicans have been on this Obama tax cut proposal, or how resistant they have been to further help those out of work? They won’t raise taxes on the rich to balance the budget but are utterly bored by relief for the middle class or the jobless. Isn’t that instructive?
And while we have been parsing the Rube Goldberg complexities of Senate Republican leader Mitch McConnell’s procedural contortions to get us out of a battle we should never have gotten into, we haven’t been discussing how to reform the No Child Left Behind law.
It’s true that some good people in Congress are trying to figure out a way forward on education reform. That’s a far more important national conversation than whether Tea Party Republicans understand the elementary laws of economics. But you wouldn’t know it because those who care about the substance of governing never get into the media. You get a lot of attention — and are sometimes proclaimed a hero — if you say something really dumb about the debt ceiling.
Then there is the coming debate over a “balanced budget” amendment to the Constitution that would limit government spending to 18 percent of gross domestic product and require a two-thirds vote to raise taxes. It’s an outrageous way for members of Congress to vote to slash Medicare, Medicaid, Social Security, aid to education and a slew of other things, to lock in low taxes on the rich — and never have to admit they’re doing it. It’s one of the most dishonest proposals ever to come before Congress, and I realize that’s saying something.
Every member of Congress who got us into this debt-ceiling fight should be docked six months’ pay. They wasted our time on political posturing instead of solving problems. Better yet, the voters might ponder firing them next year. This could do wonders for national productivity.
By: E. J. Dionne, Opinion Writer, The Washington Post, July 17, 2011
A Conspicuous Pattern: The GOP Is Really Not Interested In Governing
At his press conference the other day, President Obama noted the recommendations of the bipartisan deficit-reduction commission (which, by the way, failed to reach an agreement). He mentioned in passing that his White House set up the structure for the commission: “As you will recall, this was originally bipartisan legislation that some of the Republican supporters of decided to vote against when I said I supported it — that seems to be a pattern that I’m still puzzled by.”
It is, to be sure, quite a pattern. For two-and-a-half years, Obama has run into congressional Republicans who not only refuse to take “yes” for an answer, but routinely oppose their own ideas when the president is willing to accept them.
This seems especially relevant in the context of the current debt-reduction talks. At a certain level, it’s almost comical — here we have a Democratic president agreeing with a conservative Republican House Speaker on a massive deal that would lower the debt by over $4 trillion over the next decade. It would tilt heavily in the GOP’s direction, and address the problem Republicans pretend to care about most. Obama is even willing to consider significant entitlement “reforms,” which should be music to the ears of the right.
And yet, in the latest example that “puzzles” the president, Republicans aren’t interested.
Now, part of this is obviously the result of Republicans adopting a faith-based approach to revenue, which happens to be wildly disconnected to reality. But that’s not the only angle that matters. Matt Yglesias had a good item the other day that raised a point that’s often lost in the shuffle.
[H]ere we get to the problem that’s recurred throughout Obama’s time in office. If members of Congress think like partisans who want to capture the White House, then the smart strategy for them is to refuse to do whatever it is the president wants. The content of the president’s desire is irrelevant. But the more ambitious his desire is, the more important it is to turn him down.
After all, if the President wants a big bipartisan deal on the deficit, then a big bipartisan deal on the deficit is “a win for President Obama,” which means a loss for the anti-Obama side. When Obama didn’t want to embrace Bowles-Simpson, then failure to embrace Bowles-Simpson was a valid critique of him. But had Obama embraced Bowles-Simpson, then it would have been necessary for his opponents to reject it.
For weeks, many have marveled at the priorities of the Republican policy wish-list — given a choice between the larger debt-reduction plan in American history and preserving some tax breaks for the wealthy, GOP officials at nearly every level strongly prefer the latter. Indeed, for nearly all Republicans, it’s such a no-brainer, this question is almost silly.
But there’s a separate challenge — Republicans have a choice between advancing policies they ostensibly agree with and Obama scoring a legislative victory. And as it turns out, that’s a no-brainer, too, since GOP lawmakers don’t really care about governing so much as they care about denying the president political victories. It might make them appear ridiculous — why would anyone reject their own ideas? — but looking foolish isn’t a major concern for congressional Republicans.
Obviously, this makes compromise literally impossible, and all but guarantees the least productive legislative session in many years. But it also suggests the president needs to adapt to an awkward set of circumstances: given Republican beliefs, Obama must realize his support for a legislative idea necessarily means it’s less likely to happen.
By: Steve Benen, Contributing Writer, Political Animal, Washington Monthly, July 17, 2011
On Debt Impasse, GOP Full Of Contradictions
Sen. Mitch McConnell has a clever plan to resolve the federal debt impasse. Congressional Republicans would invite President Barack Obama to raise the debt ceiling on his own, and then they would excoriate him for doing so.
Hmm. Just a bit contradictory?
Meanwhile, the impasse arose because congressional Republicans thunder against government red ink, yet refuse to raise revenue by ending tax breaks that help Warren Buffett pay a lower tax rate than his receptionist (which he agrees is preposterous). Another contradiction? Of course.
McConnell’s plan – a pragmatic way to avert a catastrophic default – may be torpedoed by more extremist House Republicans, such as Michele Bachmann. They seem to fear that ending tax loopholes for billionaire fund managers would damage a fragile economy. Yet they seem to think that this invalid of an economy would be unperturbed by the risk of a default on our debts.
A contra- . . . yes, you got it!
What about this one? Republicans have historically been more focused on national security threats than Democrats. Yet what would do more damage to America’s national security than a default that might halt paychecks for American military families?
This game of “spot the contradiction” is just too easy with extremist Republicans; it’s like spotting snowflakes in a blizzard. Congressional Republicans have taken a sensible and important concern – alarm about long-term debt levels, a genuine problem – and turned it into a brittle and urgent ideology.
Politicians in both parties have historically been irresponsible with money, but President Bill Clinton changed that. He imposed a stunning fiscal discipline and set the United States on a course of budget surpluses, job growth and diminishing federal debt – until the Republicans took over in 2001.
In the Bush years, Republicans proved themselves reckless both on the spending side (unfunded wars and a prescription drug benefit) and on the revenue side (the Bush tax cuts). Their view then was, as former Treasury Secretary Paul O’Neill quoted Vice President Dick Cheney as saying, “Reagan proved deficits don’t matter.”
It may seem odd that Republicans were so blithe about debt in the Bush years, yet now insist on addressing the problem in the middle of a downturn – even though basic economics dictates that a downturn is the one time when red ink is advisable. Well, just another of those contradictions.
Then there’s the rise of health care costs, a huge burden on our economy. It’s pretty clear what doesn’t work: the existing, dysfunctional system. A forthcoming book on health care by Paul Starr, “Remedy and Reaction,” notes that in 1970 the United States spent a smaller fraction of income on health care than Denmark and the same share as Canada.
Today, in dollar terms, we spend 21/2 times the average per capita of other rich countries.
When congressional Republicans do talk about health care, they have one useful suggestion – tort reform – and it was foolish for Democrats (in bed with trial lawyers) to stiff them on it. But research suggests that curbing malpractice suits, while helpful, would reduce health costs only modestly.
Beyond that, the serious Republican idea is to dismantle Medicare in its present form. That would indeed reduce government spending but would increase private spending by even more, according to the CBO.
The Obama health care plan could have done better on cost control, but it does promote evidence-based medicine, so that less money is squandered on expensive procedures that don’t work. And the Independent Payment Advisory Board will recommend steps to curb excess spending in Medicare.
Yet congressional Republicans are trying to kill the Obama health plan. Yes, of course: another contradiction.
A final puzzle concerns not just the Republican Party but us as a nation. For all their flaws, congressional Republicans have been stunningly successful in framing the national debate. Instead of discussing a jobs program to deal with the worst downturn in 70 years, we’re debating spending cuts – and most voters say in polls that they’re against raising the debt ceiling. I fear that instead of banishing contradictions, we as a nation may be embracing them.
By: Nicholas Kristof, Columnist, The New York Times, Published in the Milwaukee Journal Sentinel, July 14, 2011
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