“Obamacare Sabotage Becomes Murder”: U.S. Federal Government Shuts Down
The United States federal government shut down for the first time in 17 years on Tuesday, as Congress failed to end a bitter budget row after hours of dizzying brinkmanship.
Ten minutes before midnight, the White House budget office issued an order for many government departments to start closing down, triggering 800,000 furloughs of federal workers, and shutting tourists out of monuments like the Statue of Liberty, national parks and museums.
Prospects for a swift resolution were unclear and economists warned that the struggling U.S. economic recovery could suffer if the shutdown drags on for more than just a few days.
Only workers deemed essential will be at their desks from Tuesday onwards, leaving government departments like the White House with skeleton staff.
Vital functions like mail delivery and air traffic control will continue as normal, however.
On a day of dysfunction and ugly rhetoric in the divided U.S. political system, Republicans had repeatedly tied new government funding to attempts to defund, delay or dismantle President Barack Obama’s signature health care law.
But each time their effort was killed by Obama’s allies in the Democratic-led Senate, leaving the government in limbo when its money ran out at the end of the fiscal year at midnight Monday.
“This is an unnecessary blow to America,” a somber Senate Majority Leader Harry Reid said on the Senate floor two minutes after the witching hour.
A few hours into the shutdown, Republicans in the House appointed delegates, or conferees, to try to negotiate with the Senate later Tuesday on a spending plan to get the government up and running again.
But if they still want to tinker with Obamacare, the Senate will not negotiate, an aide to Reid said.
“If the House follows through with their current plan, the Senate will vote to table the House’s conference gambit shortly after convening. And we will be back at square one,” the aide said.
Obama, heralding the first government shutdown since 1996, told U.S. troops in a video that they deserved better from Congress, and promised to work to get the government reopened soon.
Sylvia Mathews Burwell, Obama’s budget director, said agencies should execute plans for an “orderly shutdown”, and urged Congress to swiftly pass bridge financing that would allow the government to open again.
Obama earlier accused Republicans of holding America to ransom with their “extreme” political demands, while his opponents struck back at his party’s supposed arrogance.
House Speaker John Boehner rebuked Obama in a fiery floor speech after an unproductive call with the president.
“I didn’t come here to shut down the government,” Boehner said. “The American people don’t want a shutdown, and neither do I.”
Republicans accuse Obama of refusing to negotiate in good faith, but the White House says Obamacare is settled law and says there is no way to stop it from going into force, with a goal of providing affordable health care to all Americans.
The crisis is rooted in the long running campaign by “Tea Party” Republicans in the House to overturn or disable Obamacare — the president’s principal domestic political achievement — key portions of which also come into force on Tuesday.
More broadly, the shutdown is the most serious crisis yet in a series of rolling ideological skirmishes between Democrat Obama and House Republicans over the size of the U.S. government and its role in national life.
“One faction of one party in one house of Congress in one branch of government doesn’t get to shut down the entire government just to re-fight the results of an election,” Obama said, referring to his own re-election. He spoke in a televised statement from the White House.
Obama warned that a government shutdown could badly damage an economy which has endured a sluggish recovery from the worst recession in decades.
“A shutdown will have a very real economic impact on real people, right away. Past shutdowns have disrupted the economy significantly,” Obama said.
Consultants Macroeconomic Advisors said it would slow growth, recorded at a 2.5 percent annual pace in the second quarter.
A two-week shutdown would cut 0.3 percentage point off of gross domestic production.
It would also have a painful personal impact on workers affected — leaving them to dip into savings or delay mortgage payments, monthly car loan bills and other spending.
Stocks on Monday retreated as traders braced for the shutdown. The Dow Jones Industrial Average was down 128.57 points (0.84 percent) to 15,129.67.
Markets are likely to be even more traumatized if there is no quick solution to the next fast approaching crisis.
Republicans are also demanding Obama make concessions in the health care law to secure a lifting of the current $16.7 trillion debt ceiling, without which the United States would begin to default on its debts for the first time in history by the middle of October.
By: AFP, The National Memo, October 1, 2013
“A Series Of Near-Death Experiences”: Republicans Threatening National Harm Every Few Months
Against the backdrop of a government-shutdown deadline, Karen Tumulty noted yesterday the “cumulative effect of almost three years of governing by near-death experience.” It’s phrasing that rings true for a reason — since Republicans retook the House majority in January 2011, no major legislation has become law, but we have endured quite a few crises.
In April 2011, congressional Republicans threatened a government shutdown. In July 2011, congressional Republicans created the first debt-ceiling crisis in American history. In September 2011, congressional Republicans threatened a government shutdown. In April 2012, congressional Republicans threatened a government shutdown. In December 2012, congressional Republicans pushed the nation towards the so-called “fiscal cliff.” In January 2013, congressional Republicans briefly flirted with the possibility of another debt-ceiling crisis. In March 2013, congressional Republicans threatened a government shutdown. And right now, in September 2013, the odds of a government shutdown are quite good once again.
That’s eight self-imposed, entirely unnecessary, easily avoidable crises since John Boehner got his hands on the Speaker’s gavel — a 33-month period in which Congress racked up zero major legislative accomplishments.
Josh Marshall had a good item on the trend over the weekend.
Years ago, Daniel Patrick Moynihan coined the phrase ‘defining deviancy down.’ James Q. Wilson popularized the conceptually related “broken windows” theory of crime and crime prevention. Whether or not these theories and catch phrases work as sociology is separate question; subsequent research has not been kind. But they capture the toxic consequences of the normalization and expanded acceptance of destructive behavior — something that not only applies to individuals and communities but to states and their internal workings. Stepping back from the latest Washington debacle, you quickly see how far down this road we’ve gone without really even realizing it.
It has started to feel normal that two or three times a year we have a major state/fiscal crisis and maybe once every 18 months or two years, there is a true breakdown with fairly grave consequences….. [T]his is really unprecedented stuff — deep attacks on the state itself inasmuch as the state requires for it to function a penumbra of norms surrounding the formal mechanisms of government.
Quite right. In fact, I think it creates unsettling conditions and raises uncomfortable questions about the future of the American experiment.
Put simply, great nations can’t function this way. The United States can either be a 21st-century superpower or it can tolerate Republicans abandoning the governing process and subjecting Americans to a series of self-imposed extortion crises. It cannot do both.
We can be the indispensable nation — we can even be a shining city on a hill — but not with a radicalized major party that throws seasonal tantrums that threaten the nation’s wellbeing. The cost is simply too great.
In the abstract, I imagine Americans who don’t pay attention to day-to-day developments have come to expect routine gridlock and partisan bickering. Democrats and Republicans arguing is arguably the ultimate in dog-bites-man stories.
But those same Americans should search their memories: have they ever seen a governing party threaten five government shutdowns in less than three years, while sprinkling two debt-ceiling crises on top?
The American tradition has no experience with our own elected officials imposing deliberate crises on the nation — as if one of our major political parties is mad at us and feels the need to punish us for offending them.
I realize Republicans consider the Affordable Care Act an example of such profound outrage that they have no choice but to threaten Americans on purpose. I can’t begin to fathom why they hate a moderate law based on Republican principles with such wild-eyed contempt, but it’s currently the world we live in.
My suggestion to them, however, is that they introduce legislation that would deliver their preferred goals. If it passes, they’ll get what they want. If it fails, they can try winning more elections. Either way, watching Republican officials — ostensibly elected to advance our interests — threaten national harm every few months has quite tiresome.
By: Steve benen, The Maddow Blog, September 30, 2013
“Rebels Without A Clue”: Republicans Are Delusional About Both Economics And Politics
This may be the way the world ends — not with a bang but with a temper tantrum.
O.K., a temporary government shutdown — which became almost inevitable after Sunday’s House vote to provide government funding only on unacceptable conditions — wouldn’t be the end of the world. But a U.S. government default, which will happen unless Congress raises the debt ceiling soon, might cause financial catastrophe. Unfortunately, many Republicans either don’t understand this or don’t care.
Let’s talk first about the economics.
After the government shutdowns of 1995 and 1996 many observers concluded that such events, while clearly bad, aren’t catastrophes: essential services continue, and the result is a major nuisance but no lasting harm. That’s still partly true, but it’s important to note that the Clinton-era shutdowns took place against the background of a booming economy. Today we have a weak economy, with falling government spending one main cause of that weakness. A shutdown would amount to a further economic hit, which could become a big deal if the shutdown went on for a long time.
Still, a government shutdown looks benign compared with the possibility that Congress might refuse to raise the debt ceiling.
First of all, hitting the ceiling would force a huge, immediate spending cut, almost surely pushing America back into recession. Beyond that, failure to raise the ceiling would mean missed payments on existing U.S. government debt. And that might have terrifying consequences.
Why? Financial markets have long treated U.S. bonds as the ultimate safe asset; the assumption that America will always honor its debts is the bedrock on which the world financial system rests. In particular, Treasury bills — short-term U.S. bonds — are what investors demand when they want absolutely solid collateral against loans. Treasury bills are so essential for this role that in times of severe stress they sometimes pay slightly negative interest rates — that is, they’re treated as being better than cash.
Now suppose it became clear that U.S. bonds weren’t safe, that America couldn’t be counted on to honor its debts after all. Suddenly, the whole system would be disrupted. Maybe, if we were lucky, financial institutions would quickly cobble together alternative arrangements. But it looks quite possible that default would create a huge financial crisis, dwarfing the crisis set off by the failure of Lehman Brothers five years ago.
No sane political system would run this kind of risk. But we don’t have a sane political system; we have a system in which a substantial number of Republicans believe that they can force President Obama to cancel health reform by threatening a government shutdown, a debt default, or both, and in which Republican leaders who know better are afraid to level with the party’s delusional wing. For they are delusional, about both the economics and the politics.
On the economics: Republican radicals generally reject the scientific consensus on climate change; many of them reject the theory of evolution, too. So why expect them to believe expert warnings about the dangers of default? Sure enough, they don’t: the G.O.P. caucus contains a significant number of “default deniers,” who simply dismiss warnings about the dangers of failing to honor our debts.
Meanwhile, on the politics, reasonable people know that Mr. Obama can’t and won’t let himself be blackmailed in this way, and not just because health reform is his key policy legacy. After all, once he starts making concessions to people who threaten to blow up the world economy unless they get what they want, he might as well tear up the Constitution. But Republican radicals — and even some leaders — still insist that Mr. Obama will cave in to their demands.
So how does this end? The votes to fund the government and raise the debt ceiling are there, and always have been: every Democrat in the House would vote for the necessary measures, and so would enough Republicans. The problem is that G.O.P. leaders, fearing the wrath of the radicals, haven’t been willing to allow such votes. What would change their minds?
Ironically, considering who got us into our economic mess, the most plausible answer is that Wall Street will come to the rescue — that the big money will tell Republican leaders that they have to put an end to the nonsense.
But what if even the plutocrats lack the power to rein in the radicals? In that case, Mr. Obama will either let default happen or find some way of defying the blackmailers, trading a financial crisis for a constitutional crisis.
This all sounds crazy, because it is. But the craziness, ultimately, resides not in the situation but in the minds of our politicians and the people who vote for them. Default is not in our stars, but in ourselves.
By: Paul Krugman, Op-Ed Contributor, The New York Times, September 29, 2013
“Angry Men Against Democracy”: GOP Government Shutdown Isn’t About Obamacare, It’s About Obama
The House Republicans are like really bad boyfriends in a break-up. The moment is upon us, when the Capitol lantern will be dimmed and dark, with the U.S. government closing down for … who knows how long?
This is what they came here to do, the Class of 2010 House Republicans, which created a new majority overnight. They did not come here to govern or to be part of government. Stone cold crazy, they came to our town of Washington to take it down from within. They came from states like, say, Tennessee. Ever hear of Frog Jump? The tea party has such diversity! They are largely angry white men. They are not legislators or policymakers. They are not respecters of the usual traditions of Congress. They are not much but a band of marauders, an unhappy few.
It doesn’t take many unruly House Republicans to stamp out the spirit of a perfectly nice democracy. Roughly 40 will accomplish what the British did not when they burned down the Capitol in 1814, and what the terrorist hijackers failed to do on 9/11 a dozen years ago.
If I read the tea leaves right, they are going to make a demoralized country even more so. People will start to lose more faith in our national institutions and with the very idea of America: fairness and “playing by the rules,” as Bill Clinton used to say. Our highly skilled and dedicated federal workforce, which has had its pay nearly frozen for years, will feel more disrespected if they are furloughed. The world will be watching in utter disbelief.
And then what happens one minute after midnight Tuesday morning? The light goes out in the dome. The more sensible Senate will not be party to this crime. House Speaker John Boehner will flail about, helpless and humiliated because he can’t control this lawless faction.
Then the babble will start about Obamacare. That’s what they would like us to think this is all about. My fellow Americans, this is not about Obamacare; it’s about President Obama. It’s about taking down his presidency. Attacking Obamacare is just the means to that end. I don’t think Obama sized up their intent and plan to take him down, from the day they arrived in January 2011. Unfortunately, he did not recognize the depth of their hostility when the government debt ceiling hung in the balance in August 2011. He kept trying to be friends with Boehner and the other side.
We have another debt limit deadline hanging over us, which makes this showdown look like a prologue to an even more disastrous event.
Here’s the cruelest cut of all. Never has a landmark piece of legislation, passed by both houses in the usual manner, been subject to this kind of relentless attack well after its passage. Sen. Ted Cruz, a leader of the tea party band, tells anyone who will listen at 4 a.m. that the American people are on their side. That is erroneous, and besides which, it wouldn’t make the tea party plot right. Obamacare passed before many of them got here, back in 2010.
It wasn’t pretty, but Obamacare passed fair and square. President Obama was re-elected handily. So let’s keep the lantern lit. Don’t let 40 angry men undo the results of American democracy.
By: Jamie Stiehm, U. S. News and World Report, September 30, 2013
“Crafting Bills Designed To Fail”: The House Republican Tantrum That Knows No End
The New York Times published a helpful chart the other day, which highlighted a nine-step process Congress would have to follow this week to avoid a government shutdown. As it happens, steps one through eight were completed with relative ease.
It was that ninth step that gave lawmakers trouble.
House Republicans not only gathered on a weekend to take a vote that moves the government even closer to a shutdown, they did it in the dead of night.
The Republican-controlled House voted around midnight on Saturday to keep the government open for a few more months in exchange for punting the rollout of Obamacare for a year — the kind of shot at the health care law conservatives had wanted for weeks, even if it’s sure to be rejected by the Democratic-controlled Senate.
By all appearances, House Republicans are now actively seeking a government shutdown, specifically aiming for their goal rather than making any effort to avoid it. Indeed, the unhinged House majority appears to have gone out of its way to craft a spending bill designed to fail.
The bill approved after midnight would deny health care benefits to millions of American families for a year, add to the deficit by repealing a medical-device tax industry lobbyists urged Republicans to scrap, and in a fascinating twist, make it harder for Americans to get birth control. As the New York Times report noted, “The delay included a provision favored by social conservatives that would allow employers and health care providers to opt out of mandatory contraception coverage.”
Yes, in the midst of a budget crisis, the House GOP decided it was time to go after birth control again. Wow.
Senate leaders and the White House patiently tried to explain to radicalized House Republicans that voting for this would all but guarantee a government shutdown — so House Republicans voted for it en masse.
In fact, take a look at the roll call. Jonathan Bernstein asked on Friday, “Where are the sane House Republicans?” That question was answered quite clearly last night: literally every GOP lawmaker in the chamber voted for their government-shutdown plan. There were zero defections.
This was not, in other words, an isolated tantrum thrown by an extremist faction of a once-great political party. This was rather an organized tantrum thrown by the entirety of the House Republican caucus.
Keep in mind, I use the word “tantrum” largely because Republicans told me to. Rep. Tom Cole (R-Okla.), a close ally of House Speaker John Boehner (R-Ohio) said in July, “Shutting down the government to get your way over an unrelated piece of legislation is the political equivalent of throwing a temper tantrum. It is just not helpful.”
Last night, Cole linked arms with his fellow conservatives and joined them as they jumped off the cliff together. Apparently, he discovered his affinity for tantrums over the last couple of months.
Also note, we know with certainty Speaker Boehner didn’t want this scenario. It was just earlier this month that he presented a proposal that would have avoided all of this, precisely because he didn’t want to end up where we are now. But the Speaker, who has little influence or control over what happens in his own chamber, simply lacked the courage and the strength to govern responsibly.
What happens now is less clear. The Senate could reconvene today, reject the House bill, and urge House Republicans to act like grown-ups tomorrow — the last day before Monday night’s shutdown deadline. Or more likely, the upper chamber will gather in the morning, try to pass the same bill senators passed on Friday, and leave the House with just hours to keep the government’s lights on.
Either way, House Republicans continue to fail at completing even the most basic of tasks. The public doesn’t expect much of Congress anymore, but most seem to believe lawmakers should be able to keep the government’s doors open.
As things stand, that now appears unlikely.
By: Steve Benen, The Maddow Blog, September 29, 2013
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