“Marginalized By Louder Fringe Voices”: Barely A Blip On The National Radar, The Tea Party Is Losing August
August 2009 was the month of the Tea Party town hall.
We were just eight months into the Obama presidency, and Democratic congressmen headed home for recess only to get ambushed by mobs chanting their opposition to ObamaCare. As The New York Times reported at the time, “members of Congress have been shouted down, hanged in effigy, and taunted by crowds.” The August 2009 town halls certainly created obstacles on the road to health care reform, and in many ways, gave birth to the national Tea Party movement.
Now here we are in August 2013, when some observers thought that Tea Party groups would actually derail the tenuous legislative push for immigration reform. The anti-immigration group NumbersUSA is certainly trying, posting “Town Hall Talking Points” along with lists of congressional events at which to reel them off.
But midway through August, the Tea Party is barely a blip on the national radar. What happened?
1. The anti-immigration Tea Party crowd is being out-crazied
Despite the heroic efforts of Rep. Steve “Cantaloupe Calves” King, the anti-immigration faction of the Tea Party is being crowded out by voices even farther out on the fringe.
The news out of the town halls has featured Oklahoma’s “Birther Princess” and a Republican congressman casually musing about impeachment. Outside of the town halls, Republicans are publicly feuding with each other over whether to agitate for a government shutdown and conservative talk radio hosts are expending their energies defending the wisdom of turning a Missouri rodeo into a minstrel show.
The right wing’s summer cacophony is muffling the noise of the anti-immigration forces, as well as deepening the Republican image problem among moderates and people of color.
2. The Republican leadership wants no part of Tea Party agitation
For all we know, the Tea Party fizzle may be exactly what the Republican leadership wants. According to Politico, “House Republican leaders have spoken about immigration only when asked during the August recess.” That suggests Speaker John Boehner and his allies are looking to lower the temperature, creating a climate that eventually will allow compromise to win the day.
But it’s not just the formal Republican leadership that is refusing to join the anti-immigration crusade. Tea Party favorites like Sens. Rand Paul and Ted Cruz haven’t been leading the anti-immigration parade either, despite their opposition to the bipartisan Senate bill. The Daily Caller‘s Mickey Kaus lashed out, saying, “If Amnesty Wins, Blame Cruz,” as Cruz is siphoning off conservative grassroots energy for his fight against ObamaCare.
The best NumbersUSA could book for its Stop Amnesty tour is Rep. King. A recent rally led by King, held in the congressional district of the second-highest ranking House Republican, attracted a mere 60 people. Meanwhile 1,500 pro-immigration-reform activists held a Wednesday rally in the heavily Latino congressional district of the third-highest ranking House Republican.
3. Republican money is on the other side
The 2009 town hall outbursts were nationally organized in part by conservative groups FreedomWorks and Americans for Prosperity, which were funded by the billionaire Koch brothers.
But the Kochs support immigration reform, as do Karl Rove and 100 other major Republican donors. As of June, pro-immigration groups had outspent opponents more than 3-to-1.
These three factors are connected. Because the anti-immigration squad is so poorly funded and lacking in leadership, it is vulnerable to being marginalized by louder fringe voices and better organized mainstream voices.
The louder the fringe voices become, the stronger the case mainstream Republicans can make to their leaders to accept immigration reform, on the grounds that the party can’t survive if it remains associated with birthers and bigots. At the same time, since the Tea Party can’t get the conservative grassroots riled up now, they won’t have much of a case to make to incumbent congressmen that they will face fierce primary challenges next year if they agree to a compromise with Democrats.
Score August as a big win for immigration reform.
By: Bill Scher, The Week, August 16, 2013
“Moment Of Truthiness”: Stuck With Politicians Who Gleefully Add To The Misinformation And Watchdogs Who Are Afraid To Bark
We all know how democracy is supposed to work. Politicians are supposed to campaign on the issues, and an informed public is supposed to cast its votes based on those issues, with some allowance for the politicians’ perceived character and competence.
We also all know that the reality falls far short of the ideal. Voters are often misinformed, and politicians aren’t reliably truthful. Still, we like to imagine that voters generally get it right in the end, and that politicians are eventually held accountable for what they do.
But is even this modified, more realistic vision of democracy in action still relevant? Or has our political system been so degraded by misinformation and disinformation that it can no longer function?
Well, consider the case of the budget deficit — an issue that dominated Washington discussion for almost three years, although it has recently receded.
You probably won’t be surprised to hear that voters are poorly informed about the deficit. But you may be surprised by just how misinformed.
In a well-known paper with a discouraging title, “It Feels Like We’re Thinking,” the political scientists Christopher Achen and Larry Bartels reported on a 1996 survey that asked voters whether the budget deficit had increased or decreased under President Clinton. In fact, the deficit was down sharply, but a plurality of voters — and a majority of Republicans — believed that it had gone up.
I wondered on my blog what a similar survey would show today, with the deficit falling even faster than it did in the 1990s. Ask and ye shall receive: Hal Varian, the chief economist of Google, offered to run a Google Consumer Survey — a service the company normally sells to market researchers — on the question. So we asked whether the deficit has gone up or down since January 2010. And the results were even worse than in 1996: A majority of those who replied said the deficit has gone up, with more than 40 percent saying that it has gone up a lot. Only 12 percent answered correctly that it has gone down a lot.
Am I saying that voters are stupid? Not at all. People have lives, jobs, children to raise. They’re not going to sit down with Congressional Budget Office reports. Instead, they rely on what they hear from authority figures. The problem is that much of what they hear is misleading if not outright false.
The outright falsehoods, you won’t be surprised to learn, tend to be politically motivated. In those 1996 data, Republicans were much more likely than Democrats to hold false views about the deficit, and the same must surely be true today. After all, Republicans made a lot of political hay over a supposedly runaway deficit early in the Obama administration, and they have maintained the same rhetoric even as the deficit has plunged. Thus Eric Cantor, the second-ranking Republican in the House, declared on Fox News that we have a “growing deficit,” while Senator Rand Paul told Bloomberg Businessweek that we’re running “a trillion-dollar deficit every year.”
Do people like Mr. Cantor or Mr. Paul know that what they’re saying isn’t true? Do they care? Probably not. In Stephen Colbert’s famous formulation, claims about runaway deficits may not be true, but they have truthiness, and that’s all that matters.
Still, aren’t there umpires for this sort of thing — trusted, nonpartisan authorities who can and will call out purveyors of falsehood? Once upon a time, I think, there were. But these days the partisan divide runs very deep, and even those who try to play umpire seem afraid to call out falsehood. Incredibly, the fact-checking site PolitiFact rated Mr. Cantor’s flatly false statement as “half true.”
Now, Washington still does have some “wise men,” people who are treated with special deference by the news media. But when it comes to the issue of the deficit, the supposed wise men turn out to be part of the problem. People like Alan Simpson and Erskine Bowles, the co-chairmen of President Obama’s deficit commission, did a lot to feed public anxiety about the deficit when it was high. Their report was ominously titled “The Moment of Truth.” So have they changed their tune as the deficit has come down? No — so it’s no surprise that the narrative of runaway deficits remains even though the budget reality has completely changed.
Put it all together, and it’s a discouraging picture. We have an ill-informed or misinformed electorate, politicians who gleefully add to the misinformation and watchdogs who are afraid to bark. And to the extent that there are widely respected, not-too-partisan players, they seem to be fostering, not fixing, the public’s false impressions.
So what should we be doing? Keep pounding away at the truth, I guess, and hope it breaks through. But it’s hard not to wonder how this system is supposed to work.
By: Paul Krugman, Op-Ed Columnist, The New York Times, August 16, 2013
“Now If Congress Could See The Light”: A Fully Private Mortgage Market Is Good For Nobody
Let’s be clear about one thing: just about everyone agrees that the federal government is providing too much direct support to the mortgage market today. That support should be scaled back over time, but it cannot be eliminated entirely.
We believe, as do many others across the political spectrum, that a modest level of government support is necessary to promote a stable, accessible and affordable housing market. That includes an explicit guarantee on certain kinds of mortgage debt – but not the financial institutions that issue that debt.
Rather than keeping taxpayers on the hook for every dollar of loss on mortgage-backed securities – as we do now with Fannie Mae and Freddie Mac – we would rather see private capital take losses first. Financial institutions should have the opportunity to buy limited government insurance on those securities in exchange for a fair and financially responsible fee, much like the Federal Deposit Insurance Corp. offers on bank deposits.
Regardless of whether you own or rent, a government guarantee is critical to your economic well-being. Here are two reasons why.
First and foremost, the guarantee plays a crucial role in preventing and lessening the intensity of boom-and-bust cycles in the housing market. When private capital retreats from residential mortgages during a downturn, government-backed entities stay open for business, ensuring that money keeps flowing into housing. First-time homebuyers can still get a home loan. Homeowners can still refinance or find a buyer if they’re looking to move. Developers can still access the capital they need to start construction on new apartment buildings. Each of these activities sends ripples throughout the economy – new construction jobs, more demand for household goods, stronger and more stable home values – which improves everyone’s bottom line.
In the most recent example, purely private mortgage lending basically ground to a halt when the financial crisis began in 2008. Ever since Fannie Mae, Freddie Mac and the Federal Housing Administration have backed roughly 9 in 10 mortgages made in the U.S., saving the market from even worse collapse.
According to a recent analysis from Moody’s Analytics, a fully private market would have “difficulty providing stable mortgage funding during difficult financial times.” The authors concluded that “the resulting credit crunch further undermines housing demand, driving down prices and unleashing a vicious cycle.” That’s not good for anybody.
Second, it’s important to note that government-backed mortgages don’t just help homebuyers – who benefit from lower interest rates and access to longer-term, fixed-rate mortgage products. They also help the one-third of the U.S. population that rents.
In addition to their homeownership operations, Fannie and Freddie guarantee so-called “multifamily” mortgages, which finance apartment buildings with five or more units. That guarantee plays an important role in ensuring that quality, affordable rental options are available for low- and middle-income families. In 2009, the first full year of the financial crisis, Fannie and Freddie backed 85 percent of new multifamily mortgages; today that number is closer to 50 percent.
According to a recent analysis from Freddie Mac, if the government guarantee on multifamily mortgages were to go away, the market would shrink significantly. New construction on rental housing would plummet by as much as 27 percent, while average rents would rise by as much as 2 percent.
It’s clear that America’s families, regardless of their housing situation, benefit from an explicit, limited and paid-for government guarantee on mortgage debt. And a growing bipartisan consensus agrees: of the 25 plans for housing finance reform reviewed by the Center for American Progress, all but five preserve some sort of government guarantee.
Now, if only Congress could come to a similar agreement.
By: Andrew Jakabovics and John Griffith, Analysts at Enterprise Community Partners, U. S. News and World Report, August 13, 2013
“Camouflaging What They’re Up To”: GOP Bets Voters Aren’t Paying Attention To Their Obamacare Obstructionism
The House GOP leadership reportedly feels confident that they’ve defused the fanatical right’s push for a government shutdown fight over defunding Obamacare. The leaders apparently think that shutting down the government is, as a general matter, a bad idea because it tends to irritate voters who want those elected to govern to actually, you know, govern.
This prompts Greg Sargent to wonder why the GOP doesn’t get in more trouble for its general refusal to govern. The short answer, I think, is that Republicans think voters aren’t paying attention.
Sargent cites a new report from NRO’s Robert Costa outlining the House GOP leaders’ plans to avoid a shutdown and continue the battle to derail Obamacare. The latest idea: Demand an Obamacare delay in exchange for raising the debt ceiling (a legislative version of “delay Obamacare or the economy gets it”). Costa quotes veteran GOP pollster David Winston as saying that the GOP wants to avoid a shutdown because people expect them to govern.
Sargent writes:
The idea appear[s] to be that staging a shutdown to force the destruction of Obamacare — rather than offering an alternative — constitutes a failure to govern. But if that is so, why is not doing everything Republicans can to sabotage the law short of pushing for a shutdown, while offering no alternative, also a failure to govern?
I would think the answer is fairly obvious: A government shutdown is a high-profile and very unusual event and one that generally involves a fairly clear villain. If there’s a shutdown, it’s because one side is being obstinate – to wit, if House Republicans refuse to pass a bill to keep the government open without simultaneously defunding an existing law, they’ll be responsible for it regardless of how many times they claim that it’s Obama’s fault because he refuses to go along with their demands.
On the other hand, everything else the GOP is doing to make sure the law doesn’t work – from refusing to work on bills which would correct its faults to refusing to accept federal funding for a Medicaid expansion (Jonathan Chait has a great rundown of these tactics) – is not as eye-catching as a shutdown and falls into a different media narrative, one of generalized congressional gridlock. If Congress can’t pass a bill which would, to take an example from Chait, fix the law so it doesn’t force many church health insurance plans to disband, it’s easy to ascribe it to generalized gridlock (a pox on both their houses!) rather than GOP obstinacy in the larger context of a refusal to cooperate with the very routine legislative work of trying to fix a law’s problems.
Political junkies understand what the GOP is up to. But the party is gambling that medium- and low-information voters who couldn’t help but notice a shutdown won’t bother themselves with the ins and outs of daily governance (or lack thereof).
It seems a safe bet in the short term, but we’ll see whether voters figure it out as they actually start to tune in and get ready to vote next year.
By: Robert Schlesinger, U. S. News and World Report, August 13, 2013
“Martin Luther King’s Unfinished Business”: We All Have To Realize That Our Destinies Are Tied Together
On Aug. 28, 1963, Martin Luther King Jr. led a March on Washington that focused in part on economic equality.
“The Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity,” King said that day.
Fifty years later, the income and wealth gap for minorities is still wide and troubling. The median wealth of white households is 20 times that of black households and 18 times that of Hispanic households, according to the Pew Research Center.
And the Great Recession didn’t help an already bad situation. The average net worth of households in the upper 7 percent of the wealth distribution chain increased 28 percent during the first two years of the recovery from the downturn, compared with a 4 percent drop for households in the lower 93 percent, according to Pew’s analysis of data from the Census Bureau.
Another Pew report found that the decline in housing prices had a much greater impact on the net worth of minorities relative to that of whites, because housing assumes a larger share of their portfolios.
The Urban Institute’s Opportunity and Ownership Project recently issued a report that similarly examined the chasm that separates the haves and the have-nots.
In 2010, the average income for whites was twice that of blacks and Hispanics, $89,000 compared with $46,000. Whites on average had six times the wealth of blacks and Hispanics, $632,000 compared with $103,000, according to the Urban Institute.
But it’s the wealth gap that the authors of the report rightly focus on. Over the past 30 years, Americans in the top 20 percent saw their average wealth increase by nearly 120 percent, while families with wealth figures in the middle quintile saw growth of only 13 percent. The folks in the bottom 20 percent saw their net worth drop below zero, meaning their debts exceeded their assets.
“When it comes to economic gaps between whites and communities of color in the United States, income inequality tells part of the story,” the authors of the institute’s report wrote. “But let’s not forget about wealth. Wealth isn’t just money in the bank, it’s insurance against tough times, tuition to get a better education and a better job, savings to retire on, and a springboard into the middle class. In short, wealth translates into opportunity.”
The great wealth gap helps explain “why many middle-income blacks and Hispanics haven’t seen much improvement in their relative economic status and, in fact, are at greater risk of sliding backwards,” the report says.
Poverty rates for blacks and Hispanics seriously exceed the national average, according to the National Poverty Center. In 2010, 27.4 percent of blacks and 26.6 percent of Hispanics were poor, compared with 9.9 percent of non-Hispanic whites and 12.1 percent of Asians. About 38 percent of black children and 35 percent of Hispanic children live in poverty, compared with about 12 percent of white children.
“In hindsight, the organizers of the march were correct: Achieving rights without fully obtaining the resources to actualize them is only a partial victory. In this 50th anniversary year of the March on Washington for Jobs and Freedom, we can best pay tribute to the march and all that it stood for by recommitting to achieving its unfinished goals,” wrote Algernon Austin, director of the Economic Policy Institute’s Program on Race, Ethnicity and the Economy. The institute has issued a series of reports examining what it would take to achieve each of the goals of the 1963 March on Washington. Go to www.unfinishedmarch.com to read the essays.
The Rev. Jesse L. Jackson has also stressed the need to “revive the movement to address this unfinished agenda.”
In looking at other economic measures, Jackson wrote in a recent Chicago Sun-Times commentary that African Americans are twice as likely to be unemployed as are whites. Affordable housing is still an issue, as is adequate public transportation that would help people get to jobs.
“We cannot afford to write off a majority of the next generation and still prosper as a great nation,” Jackson wrote.
When I write about the economic state of minorities, I brace myself for the racist, vitriolic comments that follow. Highlighting economic inequalities isn’t about asking for handouts. It’s about finding ways to give people a hand up so that they can become self-sufficient. When the financial lives of the less fortunate are lifted, we all are lifted.
As King said in his “I Have a Dream” speech that summer day 50 years ago, we all have to realize that our destinies are tied together. “We cannot walk alone,” he said.
By: Michele Singletary, Columnist, The Washington Post, August 13, 2013