“Lying To Your Face”: Republicans Don’t Care About The Deficit. Just Look At Scott Walker
Wisconsin’s Republican Gov. Scott Walker is almost certain to run for president. He’s got two blue state election victories under his belt, ravening anti-union bona fides, and a record that would make him the most conservative presidential candidate in at least 50 years. Best of all, he’s got a pleasant, mild demeanor — none of the bug-eyed nutcase affect of other right-wingers.
However, he’s recently run into some budget troubles. Back in 2013, Wisconsin had a sizable budget surplus. Walker did what conservatives always do: he passed $2 billion in tax cuts heavily weighted towards the rich, blowing through the entire surplus and then some. Now he’s resorting to financial chicanery to avoid default:
Scott Walker, facing a $283 million deficit that needs to be closed by the end of June, will skip more than $100 million in debt payments to balance the books thrown into disarray by his tax cuts. [Bloomberg]
Whether Walker — who has surrounded himself with Ronald Reagan’s crackpot voodoo economists — can talk his way out of this will be a big political question. But this does demonstrate a fundamental truth of American politics: conservatives don’t care, at all, about deficits or debt. They use deficit concern trolling as a convenient excuse to cut social insurance and other benefits. But when it comes down to brass tacks, they choose larger deficits, not smaller.
To be clear, Walker’s move is perfectly legal. But it’s just a delaying tactic, and it will cost more in the future. Per Bloomberg‘s analysis, it will increase debt service payments “by $545,000 in the next budget year, which starts July 1, and by $18.7 million in the one after that.”
Kansas’ Sam Brownback, another Republican governor, did the exact same thing to his state. Louisiana Gov. Bobby Jindal, another possible 2016 contender, has the same problems as Walker, only worse — his budget hole is $1.6 billion. He passed massive tax cuts early in his term, and has spent the rest of the time cutting services, especially higher education, to the bone in a desperate, futile bid to make up the shortfall. He won’t rescind the tax cuts, of course.
And when collapsing oil revenues turned the budget problem into a full-blown crisis, Jindal began raiding every change jar in the state to keep Louisiana from defaulting outright, including selling state property and burning through all manner of special reserve funds.
The Republican Party has gone precisely nowhere on fiscal policy since 2000, when President George W. Bush pulled this exact same trick. He took the Clinton surplus and spent it on tax cuts for the rich. The following eight years, incidentally, resulted in the worst economic performance since Herbert Hoover.
Policy-wise, there isn’t that much to learn from this, other than conservatives produce absolutely atrocious economic policy. But we already knew that.
However, there are two political lessons. For liberals, very much including President Obama, it implies that any hard work done reducing the budget deficit will be immediately negated the moment Republicans get a chance. All of Obama’s cherished deficit reduction — accomplished at gruesome cost to the American people — will go straight to the 1 percent if Walker (or Jindal, or Jeb Bush) is elected.
Second, for paid-up members of the centrist austerity cult, who worship a falling deficit like some kind of fetish object, realize that Republicans are lying to your face. If you genuinely care about the deficit, the GOP is not going to deliver.
By: Ryan Cooper, The Week, February 20, 2015
“Came Off Like A Confused Former Governor”: Jeb Bungles Facts, Pronunciation In His Big National Security Speech
Likely presidential candidate Jeb Bush delivered a nervous, uncertain speech on national security Wednesday, full of errors and confusion.
Seeking to differentiate himself from his father and brother, both former presidents, the former governor of Florida asserted, “I am my own man.”
But the man who emerged on stage at the Chicago Council on Global Affairs did not sound well-versed in foreign policy.
Bush’s clunky, rushed delivery paled in comparison to the hazy facts in the speech and vague answers he gave during a Q&A session following his remarks.
Speaking of the extremist group based in Nigeria that has killed thousands of civilians, Bush referred to Boko Haram as “Beau-coup Haram.” Bush also referred to Iraq when he meant to refer to Iran.
Further, Bush misrepresented the strength of ISIS, saying it has some 200,000 men, which is far greater than the U.S. intelligence community’s estimates. Last week National Counterterrorism Center Director Nicholas Rasmussen pegged the fighting strength of ISIS at between 20,000 and 31,500.
“Governor Bush misspoke,” Bush aide Kristy Campbell told The Daily Beast after the speech. “He meant 20,000.”
Referring to the leader of the so-called Islamic State, Bush referred to Abu Bakr al-Baghdadi as “the guy that’s the supreme leader or whatever his new title is—head of the caliphate.”
Bush was also short on describing how he might combat the threat of ISIS. “Taking them out” in partnership with regional allies was about as specific as he got.
“We have to develop a strategy, that’s global, that takes them out,” Bush said. “First, the strategy, you know, needs to be restrain them, tighten the noose, and then taking them out is the strategy.”
Unlike senators who have more opportunities to delve into international affairs, governors tend to have a steeper learning curve on foreign policy ahead of a presidential run.
And for all his bluster about being different from his brother and father, Bush didn’t really espouse a particularly unique worldview.
The similarities in doctrine shouldn’t come as a surprise. A list of his advisers in The Washington Post reads like a who’s who of hawks from the George W. Bush and Reagan administrations.
Bush did coin a new term—“liberty diplomacy”—and spoke of the need for the United States to be engaged around the world. He also endorsed the National Security Agency’s mass surveillance of Americans, which began under his brother following 9/11, as “hugely important.”
At times Bush veered into talk about trade and the economy—two topics he was obviously more comfortable speaking about than issues of national security. As Bloomberg noted Wednesday, Bush has exposure to foreign markets as an adviser to Barclays PLC, he lived in Venezuela, and led trade missions to dozens of countries as governor.
The best-received lines from Bush were the gauziest.
“We shouldn’t be as pessimistic as we are. We’re on the verge of the greatest time to be alive,” Bush said. “We’re in our ascendancy as a nation, we just have to start acting like it again.”
By: Tim Mak and Jackie Kucinich, The Daily Beast, February 18, 2015
“Most Glaring Drawback Is He’s A Bush”: Jeb Bush Cannot Escape His Brother’s Undeniably Disastrous Presidency
Earlier this year, Mitt Romney had a Galadriel moment. He appeared to be briefly seized by a vision of himself as an all-powerful, world-striding President Romney, before turning away from temptation and settling for the plain old Mitt Romney he has always been. It was political theater at its most bizarre, a flack-driven frenzy that doubled as a flashback to the self-delusion that blinded the Romney 2012 campaign in its final days.
With Romney now out of the way, Jeb Bush has consolidated the support of the GOP’s moneyed class with surprising alacrity. As Politico noted last week, the contest for the Republican nomination was previously seen as a “free-for-all among a half-dozen or so viable candidates” but has since shifted to a game of catch-up, with a clear leader way out front who has a “bull’s-eye on his back.” He may soon be out of sight: The Washington Post reported that Bush is amassing so much money so quickly that his potential rivals “do not even claim they can compete at his level.”
The Republican primary process is a fearsome thing for any establishment candidate, but history shows that he (and it is always a he) will win in the end. None of this is good news for Bush’s would-be competitors, whether they be on the fringe (Rand Paul, Ted Cruz), slow starting out of the gates (Chris Christie), or Pawlenty-esque (Scott Walker, Bobby Jindal).
The problem for the GOP is that a Bush running in 2016 is almost as eye-rubbingly bizarre as another Romney campaign.
I’m not talking about Jeb Bush’s policies or his abilities as a campaigner (though for the most part he has been deft in avoiding the usual pitfalls and has handled the media well). I’m talking about his most glaring drawback: the fact that he’s a Bush. It seems too obvious to mention, but as Republican elites rally around his flag, it appears they need a reminder. Just a few years ago, the idea of another Bush running for president would have been laughable. Today, the party is so desperate for a winner that it is willing to entirely overlook eight disastrous years in the White House.
In early February, Jeb Bush said his brother was a “great president.” Maybe that’s just what a younger brother has to say to avoid seeming like a heartless backstabber. Then again: Really?
George W. Bush’s Iraq War was a horrible blunder — the worst foreign policy disaster since Vietnam. There was a brief moment at the dawn of the Arab Spring when conservatives were crediting Bush’s pro-democracy agenda for a wave of anti-authoritarian protests across the region, but you don’t hear them saying that anymore. Iraq was a really, really bad idea, and nothing has changed that.
Then there’s the economy. There are not many modern presidents who enjoy the dubious honor of overseeing a recession so bad that it compares only to the Great Depression. In fact, there is only one: George W. Bush. While it would be unfair to lay the entire economic collapse at his feet, it’s clear that the financial crisis stemmed from a stew of GOP policies, from deregulation to crony capitalism to overly prizing homeownership. Again, not great. Not even good.
Next up: the budget. Bush entered office with a budget surplus, then gave a huge chunk of it away to the rich. That’s not good. That’s very, very bad.
Then there’s all the rest of it: Katrina, Scooter Libby, torture, wiretapping, Dick Cheney, and on and on and on.
George W. Bush’s approval rating has improved since its 2008 nadir, but it doesn’t take a genius to figure out that it will plummet once the Bush years are relitigated in the context of a hypercompetitive presidential race in which another Bush is on the ballot.
To win a general election, Jeb Bush would have to come up with a way to disown his brother’s legacy — and so far he has only embraced it. That means that, should Hillary Clinton be the Democratic nominee, the 2016 election could very well come down to a contest between the 1990s and the 2000s.
Americans have fond memories of the 1990s. The 2000s? Not so much.
By: Ryu Spaeth, The Week, February 17, 2015
“Money Makes Crazy”: The GOP Consensus On Money Is Crazy, Full-On Conspiracy-Theory Crazy
Monetary policy probably won’t be a major issue in the 2016 campaign, but it should be. It is, after all, extremely important, and the Republican base and many leading politicians have strong views about the Federal Reserve and its conduct. And the eventual presidential nominee will surely have to endorse the party line.
So it matters that the emerging G.O.P. consensus on money is crazy — full-on conspiracy-theory crazy.
Right now, the most obvious manifestation of money madness is Senator Rand Paul’s “Audit the Fed” campaign. Mr. Paul likes to warn that the Fed’s efforts to bolster the economy may lead to hyperinflation; he loves talking about the wheelbarrows of cash that people carted around in Weimar Germany. But he’s been saying that since 2009, and it keeps not happening. So now he has a new line: The Fed is an overleveraged bank, just as Lehman Brothers was, and could experience a disastrous collapse of confidence any day now.
This story is wrong on so many levels that reporters are having a hard time keeping up, but let’s simply note that the Fed’s “liabilities” consist of cash, and those who hold that cash have the option of converting it into, well, cash. No, the Fed can’t fall victim to a bank run. But is Mr. Paul being ostracized for his views? Not at all.
Moreover, while Mr. Paul may currently be the poster child for off-the-wall monetary views, he’s far from alone. A lot has been written about the 2010 open letter from leading Republicans to Ben Bernanke, then the Fed chairman, demanding that he cease efforts to support the economy, warning that such efforts would lead to inflation and “currency debasement.” Less has been written about the simultaneous turn of seemingly respectable figures to conspiracy theories.
There was, for example, the 2010 op-ed article by Representative Paul Ryan, who remains the G.O.P.’s de facto intellectual leader, and John Taylor, the party’s favorite monetary economist. Fed policy, they declared, “looks an awful lot like an attempt to bail out fiscal policy, and such attempts call the Fed’s independence into question.” That statement looks an awful lot like a claim that Mr. Bernanke and colleagues were betraying their trust in order to help out the Obama administration — a claim for which there is no evidence whatsoever.
Oh, and suppose you believe that the Fed’s actions did help avert what would otherwise have been a fiscal crisis. This is supposed to be a bad thing?
You may think that at least some of the current presidential aspirants are staying well clear of the fever swamps, but don’t be so sure. Jeb Bush appears to be getting his economic agenda, such as it is, from the George W. Bush Institute’s 4% Growth Project. And the head of that project, Amity Shlaes, is a prominent “inflation truther,” someone who claims that the government is greatly understating the true rate of inflation.
So monetary crazy is pervasive in today’s G.O.P. But why? Class interests no doubt play a role — the wealthy tend to be lenders rather than borrowers, and they benefit at least in relative terms from deflationary policies. But I also suspect that conservatives have a deep psychological problem with modern monetary systems.
You see, in the conservative worldview, markets aren’t just a useful way to organize the economy; they’re a moral structure: People get paid what they deserve, and what goods cost is what they are truly worth to society. You could say that to the free-market true believer, to know the price of everything is also to know the value of everything.
Modern money — consisting of pieces of paper or their digital equivalent that are issued by the Fed, not created by the heroic efforts of entrepreneurs — is an affront to that worldview. Mr. Ryan is on record declaring that his views on monetary policy come from a speech given by one of Ayn Rand’s fictional characters. And what the speaker declares is that money is “the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. … Paper is a check drawn by legal looters.”
Once you understand that this is how many conservatives really think, it all falls into place. Of course they predict disaster from monetary expansion, no matter the circumstances. Of course they are undaunted in their views no matter how wrong their predictions have been in the past. Of course they are quick to accuse the Fed of vile motives. From their point of view, monetary policy isn’t really a technical issue, a question of what works; it’s a matter of theology: Printing money is evil.
So as I said, monetary policy should be an issue in 2016. Because there’s a pretty good chance that someone who either gets his monetary economics from Ayn Rand, or at any rate feels the need to defer to such views, will get to appoint the next head of the Federal Reserve.
By: Paul Krugman, Op-Ed Contributor, The New York Times, February 13, 2015
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