By: Dana Milbank, Opinion Writer, The Washington Post, September 23, 2011
Obama Isn’t Trying To Start ‘Class Warfare’ — He Wants To End The Republican War On The Middle Class
History will record that on September 19, 2011, the Republicans made a huge political miscalculation — a miscalculation that could potentially doom their chances for victory next year.
If I were a Republican, the last thing I’d want to talk about is “class warfare.”
For 30 years — whenever they have been in power — Republicans and their Wall Street/CEO allies have conducted a sustained, effective war on the American middle class.
Much of the success of their war has resulted from their insistence that it didn’t exist. They have talked instead about how the economy needs to reward all those “job creators” whose beneficence will rain down economic prosperity on the rest of us.
They fund right-wing organizations that divert our attention by whipping up worry that gay marriage will somehow undermine heterosexual relationships. They start wars that help pad the bottom lines of defense contractors but do nothing to make us safer.
And all the while they quietly rig the economic game so that all of the growth in the Gross Domestic Product goes into the hands of the top two percent of the population — while they cut our pay, destroy our unions and do their level best to cut our Social Security and Medicare.
There has been a “class war” all right — a war on the middle class. And the middle class has been on the losing end.
Today the truly rich control a higher percent of our wealth and income than at any other time in generations. Income inequality is higher than at any time since 1928 — right before the Great Depression.
According to the Economic Policy Institute, “the richest five percent of households obtained roughly 82 percent of all the nation’s gains in wealth between 1983 and 2009. The bottom 60 percent of households actually had less wealth in 2009 than in 1983… ”
Today, 400 families control more wealth than 150 million Americans — almost half of our population.
American workers have become more and more productive — but they haven’t shared in the income generated by that increased productivity, so now they can’t afford to buy the products and services they produce.
The success of the Wall Street/CEO/Republican war on the middle class rests, in part, in the old frog in boiling water story. If you put a frog in a pot of boiling water, they say, the frog will jump right out. But if you put a frog in a pot and gradually turn up the heat until it boils you end up with a cooked frog.
Republican policies have gradually shifted wealth, income and power from the middle class — and those who aspire to be middle class — into their own hands and for obvious reasons they haven’t wanted to focus too much attention on “class warfare.”
So now if the Republicans want to talk about “class warfare” — in the words of George Bush — “bring ’em on.”
In fact, President Obama isn’t proposing to start a “class war” — he wants to end the war on the middle class.
Among other things, he has proposed that America live by the “Buffett Rule” — by Warren Buffett’s suggestion that he and his fellow billionaires should have to pay effective tax rates at least as high as their own secretary’s.
Obama pointed out yesterday that requiring hedge fund managers to pay effective tax rates as high as plumbers and teachers was not “class warfare.” The choice is clear: either you increase taxes on the wealthy — or dramatically cut Medicare, Medicaid and Social Security benefits. It is, as the President said, “simple math.”
Whereas Republican proposals to rein in the deficit by cutting Social Security, Medicare and Medicaid benefits are intended to continue this war on the middle class, the President’s plan — in stark contrast — addresses the three factors that actually caused the deficit in the first place.
From 1993 until 2000, Bill Clinton had successfully pushed back much of the Republican anti-middle class agenda. When he left office, America had a prosperous, growing economy, increasing middle class incomes, and budget surpluses as far as the eye could see.
Bush changed all that. The anti-middle class warriors were back in power, and they took the offensive. They passed massive new tax breaks for the rich, and set out to break unions.
Three Bush/Republican policies led directly to today’s deficit:
• Giant tax cuts for the wealthy;
• Two unpaid-for wars that will ultimately cost trillions;
• Trickle-down economic policies that did not create one net private sector job and ultimately caused the financial collapse that led to the Great Recession.
The Obama deficit proposal reduces the deficit by directly addressing these three factors — that actually caused the deficit — rather than demanding that the budget be balanced by taking even more out of the pockets of ordinary Americans.
A trillion dollars — 1.2 trillion with interest — is cut by ending the Wars in Iraq and Afghanistan. Those who argue that you shouldn’t count these reductions toward deficit reduction, because Obama already planned to end these wars, are ignoring the fact that they were a big reason why we have a deficit in the first place.
Second, Obama’s proposal eliminates the Bush tax cuts for the rich — and demands that millionaires, billionaires, oil companies, and CEO’s who fly around in corporate jets, pay their fair share.
Finally, the Obama plan includes a robust jobs package to jumpstart the economy and put America back to work. The Republicans have no jobs plan at all — none whatsoever. In fact, their plan is to simply let the Wall Street bankers and CEO’s continue to siphon as much as possible from the pockets of ordinary Americans.
The combination of Obama’s jobs and budget plans have set the stage for a clear, sharp battle for the soul of America. They have posed a stark contrast that is not framed as a battle over conflicting policies and programs — but as a struggle between right and wrong.
That battle will continue throughout this fall — and into next year’s elections.
These proposals, coupled with the President’s urgent, passionate advocacy, have transformed the political landscape.
The major iconic fights that will dominate American politics over the next 14 months will be the President’s jobs proposal, his call on millionaires and billionaires to pay their fair share, and the Democratic defense of Social Security, Medicare and Medicaid.
Democrats and Progressives have the high political ground on every one of these defining issues — and I don’t just mean slightly higher political ground — I mean political ground like Mount Everest.
By huge margins, Americans prefer to raise taxes on millionaires and billionaires rather than cut Social Security and Medicare. The choice is not even close — in most polls something like 8 to 1.
And who can possibly question that the number one priority of voters everywhere in America is jobs?
The Republican policies that led to the Great Recession did more damage than anyone knew. Many Republicans actually thought they would benefit politically by the long, slow economic slog that ensued in its aftermath. After all, no sitting President had won re-election in a century when the economy was not good or materially improving — except one.
Harry Truman won re-election in the midst of a bad economy in 1948 by running against the “Do-nothing Republican Congress.”
President Obama’s jobs and budget proposals have set the stage for just that kind of battle.
His proposals have simultaneously energized the progressive base and appealed to middle class swing voters — especially seniors — who agree entirely that the government should keep its hands off the Social Security and Medicare benefits they have earned, and turn instead to taxes on millionaires and billionaires to close the budget deficit that the Republican “class warfare” policies have created.
And it won’t hurt that these proposals have prompted the Republicans to turn the spotlight on the subject of “class warfare” itself. They should be careful what they wish for.
By: Robert Creamer, Strategist and Author, Published in HuffPost, September 20, 2011
Rick Perry And The Texas Non-Miracle
About all those new jobs created under Gov. Rick Perry…
The Center for Immigration Studies reports some facts that should sprinkle a little cold water on over-heated claims for the low-wage/high-immigration Texas economic model.
Of jobs created in Texas since 2007, 81 percent were taken by newly arrived immigrant workers (legal and illegal).
Absorb that for a minute.
Native-born Texans have experienced a jobs catastrophe very similar to that of Americans everywhere else in the United States, reports CIS:
The share of working-age natives holding a job in Texas declined significantly, from 71 percent in 2007 to 67 percent in 2011. This decline is very similar to the decline for natives in the United States as a whole and is an indication that the situation for native-born workers in Texas is very similar to the overall situation in the country despite the state’s job growth.
What we are seeing here is not a pattern of job creation. It is a pattern of job displacement.
The large share of job growth that went to immigrants is surprising because the native-born accounted for 69 percent of the growth in Texas’ working-age population (16 to 65). Thus, even though natives made up most of the growth in potential workers, most of the job growth went to immigrants.
And by the way – it’s not just a matter of jobs “Americans won’t do.” As the decline in native-born employment shows, these are jobs natives used to do as recently as 2007. And the displacement is occurring higher and higher up the pay scale.
Immigrants took jobs across the educational distribution. More than one out three (97,000) of newly arrived immigrants who took a job had at least some college.
In all this, illegal immigration remains a huge factor, despite the often-heard claim that illegal immigration has slowed since the end of the housing bubble.
Of newly arrived immigrants who took jobs in Texas since 2007, we estimate that 50 percent (113,000) were illegal immigrants. Thus, about 40 percent of all the job growth in Texas since 2007 went to newly arrived illegal immigrants and 40 percent went to newly arrived legal immigrants.
A couple of conclusions follow:
1) There was no Texas miracle, from the point of view of the people who constituted the population of Texas back in 2007.
2) Rick Perry’s permissive view of immigration is not (as I’ve pointed out before) some compassionate-conservative exception to his no-soup-for-you economic policy. A permissive immigration is the indispensable prerequisite to the no-soup-for-you economy over which Perry presided.
3) Immigration is not an issue separate from the debate over employment and growth. It’s integral. You could plausibly argue in the 2000s that immigration was ancillary to job growth for Americans – or even that it somehow spurred job growth for Americans. In today’s context however, immigration is increasingly a substitute for job growth for Americans.
4) Mitt Romney finally has his answer the next time Rick Perry attacks him for Massachusetts poor jobs ranking in the early part of the 2000s.
“The numbers show, Governor, that your economic policy was great at creating jobs – for Mexico.”
By: David Frum, The Frum Forum, September 22, 2011
Mr. Nice Guys?: Will Republicans Practice What They Tweet?
It appeared, at first glance, as if Eric Cantor’s Twitter account had been hacked — by a really nice guy.
In recent days, the extravagantly combative GOP House majority leader has been tweeting a veritable sampler box of bipartisan bonbons.
Sept. 21: “People don’t expect Republicans and Democrats to agree on everything, but they do expect us to overcome our differences and work together.”
Sept. 16: “Good people can have honest disagreements without having their morals or commitment to country being called into question.”
Sept. 13: “We need to work together towards the solutions that will meet the challenges facing our country today.”
Sept. 12: “Let’s try and lower the volume of the rancor in Washington, and focus on what we can do together to grow this economy and create jobs.”
And that is just a taste.
But this was no case of malicious (or, in this instance, magnanimous) hacking. After one of the ugliest summers political Washington has ever seen, Republicans, looking at poll numbers showing voters are even angrier with them than they are with President Obama, have decided to try the Mr. Nice Guy approach, in word and (occasional) deed.
They agreed to pass legislation keeping the Federal Aviation Administration going, abandoning the contentious provisions that led to this summer’s partial shutdown of the agency. They avoided another confrontation by extending highway spending without repealing the federal gas tax, a Tea Party priority. On Thursday, Senate Republicans yielded to President Obama’s demands and passed a worker-assistance bill that clears the way for enacting new trade agreements.
None of this means we’ve entered some new era of harmony in the capital; Republicans remain unswervingly opposed to any new taxes to reduce debt. And GOP leaders can push their rank-and-file only so far.
After conservatives on Wednesday defeated their leaders’ legislation that would keep the government running for the next two months, House Speaker John Boehner (R-Ohio) attempted to negotiate with House Minority Leader Nancy Pelosi (D-Calif.) in hopes of securing Democratic votes for the spending bill. But Boehner lost his nerve and decided instead to appease the recalcitrant conservatives.
Still, the shift in tone shows that Republicans have decided to pick their battles — a sensible response to the revulsion Americans felt watching this summer’s brinkmanship over the debt limit.
The Republicans seem to be heeding the advice of strategists such as Bill McInturff, a GOP pollster who, in a widely read memo earlier this month, warned that the debt standoff hurt consumer confidence much like the Iranian hostage crisis, the collapse of Lehman Brothers and Hurricane Katrina.
“The perception of how Washington handled the debt ceiling negotiation led to an immediate collapse of confidence in government and all the major players, including President Obama and Republicans in Congress,” McInturff wrote. He added that “this sharp a drop in consumer confidence is a direct consequence of the lack of confidence in our political system and its leaders.”
Fearing that voters will probably punish all incumbents — not just Obama — Republicans have softened their style in September, even as Obama has hardened his. “There is a recognition on the Hill that people are frustrated with Washington and want some results,” acknowledged Cantor’s spokesman, Brad Dayspring.
The Republicans’ experiment in conciliation has been aided by Senate Majority Leader Harry Reid (D-Nev.), who has brought up issues — patents, trade and transportation — that had bipartisan support from the start. But Democrats also claim some vindication in the new approach. As one Democratic leadership aide put it: “They’re picking their shots better so they don’t come across as complete [expletives].”
The question is: How much substance comes with that recalibration? After Obama’s address to Congress on job creation, Boehner replied with the conciliatory message that “it is our desire to work with you to find common ground.”
On the morning after his House conservatives defeated the legislation to keep the government running, Boehner went to the microphones to assure Americans: “Listen, there’s no threat of government shutdown. Let’s just get this out there.”
Privately, Democrats believe that, too. And though Obama’s jobs bill has no chance of passage (even many Democrats object to its tax increases), chances are good that Republicans will agree to extend the payroll tax cut and a tax credit for hiring wounded veterans.
“We want to join with our colleagues on the other side of the aisle, to find areas where we agree, to make sure the American economy succeeds,” Cantor announced via Twitter.
Well said. But how much will Republicans practice what they tweet?
Good News!: If Top Tax Rates Return To Reagan Era, Bill O’Reilly Might Quit
Fox News’ Bill O’Reilly boasted the other day that he enjoys “more power than anybody other than the president.”
Apparently, though, this rather extraordinary degree of influence over national affairs isn’t quite enough for the conservative media personality. In fact, O’Reilly is so concerned about his potential tax burden under the “Buffett Rule,” he told his television audience last night he might just quit working altogether.
“I must tell you I want the feds to get more revenue. I don’t want to starve them as some people do. We need a robust military, a good transportation system and protections all over the place.
“But if you tax achievement, some of the achievers are going to pack it in. Again, let’s take me. My corporations employ scores of people. They depend on me to do what I do so they can make a nice salary. If Barack Obama begins taxing me more than 50 percent, which is very possible, I don’t know how much longer I’m going to do this. I like my job but there comes a point when taxation becomes oppressive. Is the country really entitled to half a person’s income?”
In case anyone’s interested in the relevant details, let’s clarify a few things.
First, we don’t know if President Obama is eyeing a top rate of 50%, and even if he did, the likelihood of congressional passage would be roughly zero.
Second, a top rate of 50% does not mean O’Reilly would lose “half” his income. I know this can seem a little complicated, but that’s just not how marginal tax rates work.
And third, a 50% top rate for millionaires and billionaires would be a departure from the recent past, but to describe it as “oppressive” is to forget much of the 20th century.
In Ronald Reagan’s first term, for example, the top rate was — you guessed it — 50%. Did Reagan’s “oppressive” tax rates prevent robust economic growth? Did “the achievers” decide to “pack it in”? No and no.
For nearly all of Dwight Eisenhower’s presidency, the top rate was 91%. That’s not a typo. Did this Republican president’s “oppressive” tax policy prevent the U.S. economy from growing in the 1950s? Apparently not.
That said, if O’Reilly is contemplating retirement to avoid helping America pay its bills, I’m not inclined to discourage him.
By: Steve Benen, Contributing Writer, Washington Monthly Political Animal, September 20, 2011
Coddled Long Enough: The “Buffett Rule” Vs “Class Warfare”
Over the weekend, the White House leaked word that President Obama will push a new debt-reduction idea: the “Buffett Rule.” Named after Warren Buffett, the chairman and chief executive of Berkshire Hathaway, who’s been urging policymakers to raise taxes on the very wealthy. As Buffett recently explained, millionaires and billionaires “have been coddled long enough.”
We don’t yet know the details of the proposal — most notably, what the new millionaires’ minimum tax rate would be — but Republicans are already responding with predictable disgust.
Here, for example, was House Budget Committee Chairman Paul Ryan (R-Wis.) yesterday on Fox News, making the case for coddling millionaires and billionaires for a while longer. See if you can pick up on the subtlety of his talking points.
“Class warfare, Chris, may make for really good politics but it makes a rotten economics. We don’t need a system that seeks to divide people. […]
“[I]t looks like the president wants to move down the class warfare path. Class warfare will simply divide this country more. It will attack job creators, divide people and it doesn’t grow the economy. […]
“[I]f we are just going to do class warfare and trying to get tax increases out of this, and I don’t think much will come of it…. He’s in a political class warfare mode and campaign mode.”
So, I guess I’ll put him down as a “maybe” on the Buffett Rule?
By any reasonable measure, Ryan’s arguments aren’t just wrong, they’re borderline offensive.
For a generation, Republican policymakers have rigged national tax policy to reward the wealthy, and then reward them some more. We’ve seen the class gap reach Gilded Era levels, only to hear GOP officials again demand that working families “sacrifice” while lavishing more breaks on the very wealthy.
Remind me, who’s engaged in “class warfare” and “dividing people”?
Also note the larger policy context here. President Obama wants the richest of the rich to pay a little more, but keep tax breaks in place for the middle class. Paul Ryan and his cohorts want the polar opposite — more breaks for the very wealthy and higher taxes for the middle class.
Let’s also not forget that one of the GOP’s more common tax-policy arguments is that nearly half the country doesn’t have any federal income tax burden — and they see that as a problem that needs fixing. As a practical matter, the Republican argument on this is practically the definition of “class warfare.”
I realize much of the political establishment has come to look at Paul Ryan as a wise wonk who deserves to be taken seriously, but it really doesn’t take much to realize how spectacularly wrong the far-right Wisconsinite really is.
By: Steve Benen, Washington Monthly Political Animal, September 19, 2011
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