Obama: The Conservative In 2012
At a moment when the nation wonders whether politicians can agree on anything, here is something that unites the Republican presidential candidates — and all of them with President Obama: Everyone agrees that the 2012 election will be a turning point involving one of the most momentous choices in U.S. history.
True, candidates (and columnists) regularly cast an impending election as the most important ever. Campaigning last week in Pella, Iowa, Republican Rick Santorum acknowledged as much. But he insisted that this time, the choice really was that fundamental. “The debate,” he said, “is about who we are.”
Speaking not far away, in Mount Pleasant, Newt Gingrich went even further, and was more specific. “This is the most important election since 1860,” he said, “because there’s such a dramatic difference between the best food-stamp president in history and the best paycheck candidate.” Thus did Gingrich combine historic sweep with a cheap and inaccurate attack. Nonetheless, it says a great deal that Gingrich chose to reach all the way back to the election that helped spark the Civil War.
Mitt Romney was on the same page in a speech in Bedford, N.H. “This is an election not to replace a president but to save a vision of America,” he declared. “It’s a choice between two destinies.” Sounding just like Santorum, he urged voters to ask: “Who are we as Americans, and what kind of America do we want for our children?”
Obama could not agree more. “This is not just another political debate,” the president said in his theme-setting speech in Osawatomie, Kan., earlier this month. “This is a make-or-break moment for the middle class, and for all those who are fighting to get into the middle class.”
On this one, Santorum, Gingrich, Romney and Obama all have it right. For the first time since Barry Goldwater made the effort in 1964, the Republican Party is taking a run at overturning the consensus that has governed U.S. political life since the Progressive era.
Obama is defending a tradition that sees government as an essential actor in the nation’s economy, a guarantor of fair rules of competition, a countervailing force against excessive private power, a check on the inequalities that capitalism can produce, and an instrument that can open opportunity for those born without great advantages.
Today’s Republicans cast the federal government as an oppressive force, a drag on the economy and an enemy of private initiative. Texas Gov. Rick Perry continues to promise, as he did last week during a campaign stop in Davenport, Iowa, to be a president who would make “Washington, D.C., as inconsequential in your life as he can make it.” That far-reaching word “inconsequential” implies a lot more than trims in budgets or taxes.
The GOP is engaged in a wholesale effort to redefine the government help that Americans take for granted as an effort to create a radically new, statist society. Consider Romney’s claim in his Bedford speech: “President Obama believes that government should create equal outcomes. In an entitlement society, everyone receives the same or similar rewards, regardless of education, effort and willingness to take risk. That which is earned by some is redistributed to the others. And the only people who truly enjoy any real rewards are those who do the redistributing — the government.”
Obama believes no such thing. If he did, why are so many continuing to make bundles on Wall Street? As my colleagues Greg Sargent and Paul Krugman have been insisting, Romney is saying things about the president that are flatly, grossly and shamefully untrue. But Romney’s sleight of hand is revealing: Republicans are increasingly inclined to argue that any redistribution (and Social Security, Medicare, student loans, veterans benefits and food stamps are all redistributive) is but a step down the road to some radically egalitarian dystopia.
Obama will thus be the conservative in 2012, in the truest sense of that word. He is the candidate defending the modestly redistributive and regulatory government the country has relied on since the New Deal, and that neither Ronald Reagan nor George W. Bush dismantled. The rhetoric of the 2012 Republicans suggests they want to go far beyond where Reagan or Bush ever went. And here’s the irony: By raising the stakes of 2012 so high, Republicans will be playing into Obama’s hands. The GOP might well win a referendum on the state of the economy. But if this is instead a larger-scale referendum on whether government should be “inconsequential,” Republicans will find the consequences to be very disappointing.
By: E. J. Dionne Jr., Opinion Writer, The Washington Post, December 25, 2011
“A Heart Two Sizes Too Small”: Pretending I Am A Republican
Ok, I thought it would be fun to pretend that I am a Republican. Cut me some slack here. I know what some of you are thinking…this is some mean trick.
No, really, I am trying to figure out what I would do if I were running for president as a Republican. And I understand the problem with going “mainstream” now, as everyone is fighting for the most conservative, extreme wing of the party.
But here are 5 things I would suggest:
Middle Class: First and foremost, I would try and figure out how to fight for the middle class. I would not be talking about stopping a $1,500 tax break for working families, while suggesting another drop in the upper income tax bracket from 35 percent to 28 percent, even after the Bush temporary tax cut from 39 percent to 35 percent. The Republicans are doing everything in their power to pay for the tax break for the middle class in some fashion but do not seem to care much about paying for the Bush tax cuts for millionaires and billionaires. This is hurting them badly politically and they need to support tax breaks for those who are suffering. So, I would be talking about the middle class by suggesting help for college and trade school, help with job training, incentives for hiring and expanding, and providing tax breaks for start-ups.
Tolerance: I would try and take on others (including the opponents) for gratuitous slams at gays, Hispanics, blacks, women, and Arab Americans. I would openly criticize an audience that boos a gay soldier fighting for his country, a candidate who talks about “Obama’s war on religion” while blasting gays in the military, and others who believe a state initiative on Shariah law is smart politics. Americans are moving fast towards tolerance and acceptance of those who are different from them—embrace it, don’t fan the flames of intolerance.
Role of Government: Republicans will, for the time being, blast government but they should say what they are for. How about acknowledging that the Securities and Exchange Commission should have had more teeth and been more vigilant in going after the Madoffs and Stanfords of the world? Now is not the time to let the financial system run amok; rather we should be tougher in protecting the “little guy”, the consumer, the investor, the depositor. Why not combine a concern for over-regulation of small businesses with a tighter grip on those who have abused the system?
Foreign Policy: This is one area where Republicans should zip it. If I were running I would give Obama his due on the war on terror, Iraq and Afghanistan, praise Secretary of State Hillary Clinton and pivot to domestic issues. Talk expanding trade, cutting good deals, competing with the Chinese and leave it at that—but don’t accuse Obama of being “weak.” Doesn’t work. Creating more jobs in the international economy is a much better message.
National Service: Sounds like a side issue, but I would call for all Americans to give back to their country. Everyone between 18-25 should serve in some capacity for two years, in the military, in the Peace Corps, Teach for America, in their local communities. The reward: help with their education, paying off student loans, assistance with grad school—a new GI Bill if you will—but ultimately, good deeds are their own reward. We would change the ethic in this country that you can have your cake and eat it too, that your government owes you, that there is no need to contribute your talents, hard work, resources, to others.
So, I guess if I turned into a Republican, I wouldn’t be very popular in the current crowd, would I? But my strong belief is that a Republican who adopted these five ideas might just stand a better chance of being elected next November. Yes, this is Christmas and a time of miracles but maybe, just maybe there are some Republicans out there who agree.
By: Peter Fenn, U. S. News and World Report, December 16, 2011
If Only GOP Lawmakers Were More Like GOP Voters
I imagine everyone has seen the bumper sticker that says, “Lord, protect us from your followers.” I have an idea for a related sticker that reads, “Republicans, protect us from your elected officials.”
In the existing political landscape, the real problem is not with GOP voters; it’s with GOP policymakers. This isn’t to let the party’s supporters off the hook entirely — they’re the ones who supported and elected the officeholders — but it’s hard to overstate how much more constructive the political process would be if Republican lawmakers in any way reflected the priorities of their own supporters.
Last week, a national poll found that Republican voters broadly support the Democratic jobs agenda — a payroll tax cut, jobs for teachers/first responders, infrastructure investments, and increased taxes on millionaires and billionaires — in some cases by wide margins. This week, Tim Noah noticed this observation can be applied even further.
I’m liking rank-and-file Republicans better and better. Earlier this month we learned that they favor Obama’s plan to tax the rich. Now we learn that a 55 percent majority of them think Wall Street bankers and brokers are “dishonest,” 69 percent think they’re “overpaid,” and 72 percent think they’re “greedy.” Fewer than half (47 percent) have an unfavorable view of the Occupy Wall Street protests. Thirty-three percent either favor them or have no opinion, and 20 percent haven’t heard of them. Also, a majority favor getting rid of the Electoral College and replacing it with a popular vote. After the 2000 election only 41 percent did. Now 53 percent do. How cool is that?
Every one of these positions puts the GOP rank-and-file at odds with their congressional leadership and field of presidential candidates.
I don’t want to exaggerate this too much. The fact remains that the Republican Party is dominated by conservative voters, especially those who participate in primaries and caucuses. I’m not suggesting for a moment that the party’s rank-and-file members are moving to the left.
But the recent poll results are also hard to miss — many if not most GOP voters are perfectly comfortable with plenty of progressive ideas, including tax increases on millionaires and billionaires. It’s starting to look like the party’s rank and file is made up of mainstream conservatives who want their party to help move the country forward.
And yet, when we look to Republican officials in Washington, how many GOP members of Congress are willing to endorse any of these popular measures? Zero. Literally, not even one Republican lawmaker has offered even tacit support for ideas that most GOP voters actually like. In the Senate, a united Republican caucus won’t even allow a vote — won’t even allow a debate — on popular job-creation ideas during a jobs crisis.
If the actions of GOP lawmakers in any way resembled the wishes of GOP voters, our political system wouldn’t be nearly as dysfunctional as it is now.
Congratulations, congressional Republicans. You’re far more extreme than your own supporters.
By: Steve Benen, Washington Monthly Political Animal, October 25, 2011
Soaring Inequality: “It’s Time To Take The Crony Out Of Capitalism”
Whenever I write about Occupy Wall Street, some readers ask me if the protesters really are half-naked Communists aiming to bring down the American economic system when they’re not doing drugs or having sex in public.
The answer is no. That alarmist view of the movement is a credit to the (prurient) imagination of its critics, and voyeurs of Occupy Wall Street will be disappointed. More important, while alarmists seem to think that the movement is a “mob” trying to overthrow capitalism, one can make a case that, on the contrary, it highlights the need to restore basic capitalist principles like accountability.
To put it another way, this is a chance to save capitalism from crony capitalists.
I’m as passionate a believer in capitalism as anyone. My Krzysztofowicz cousins (who didn’t shorten the family name) lived in Poland, and their experience with Communism taught me that the way to raise living standards is capitalism.
But, in recent years, some financiers have chosen to live in a government-backed featherbed. Their platform seems to be socialism for tycoons and capitalism for the rest of us. They’re not evil at all. But when the system allows you more than your fair share, it’s human to grab. That’s what explains featherbedding by both unions and tycoons, and both are impediments to a well-functioning market economy.
When I lived in Asia and covered the financial crisis there in the late 1990s, American government officials spoke scathingly about “crony capitalism” in the region. As Lawrence Summers, then a deputy Treasury secretary, put it in a speech in August 1998: “In Asia, the problems related to ‘crony capitalism’ are at the heart of this crisis, and that is why structural reforms must be a major part” of the International Monetary Fund’s solution.
The American critique of the Asian crisis was correct. The countries involved were nominally capitalist but needed major reforms to create accountability and competitive markets.
Something similar is true today of the United States.
So I’d like to invite the finance ministers of Thailand, South Korea and Indonesia — whom I and other Americans deemed emblems of crony capitalism in the 1990s — to stand up and denounce American crony capitalism today.
Capitalism is so successful an economic system partly because of an internal discipline that allows for loss and even bankruptcy. It’s the possibility of failure that creates the opportunity for triumph. Yet many of America’s major banks are too big to fail, so they can privatize profits while socializing risk.
The upshot is that financial institutions boost leverage in search of supersize profits and bonuses. Banks pretend that risk is eliminated because it’s securitized. Rating agencies accept money to issue an imprimatur that turns out to be meaningless. The system teeters, and then the taxpayer rushes in to bail bankers out. Where’s the accountability?
It’s not just rabble-rousers at Occupy Wall Street who are seeking to put America’s capitalists on a more capitalist footing. “Structural change is necessary,” Paul Volcker, the former chairman of the Federal Reserve, said in an important speech last month that discussed many of these themes. He called for more curbs on big banks, possibly including trimming their size, and he warned that otherwise we’re on a path of “increasingly frequent, complex and dangerous financial breakdowns.”
Likewise, Mohamed El-Erian, another pillar of the financial world who is the chief executive of Pimco, one of the world’s largest money managers, is sympathetic to aspects of the Occupy movement. He told me that the economic system needs to move toward “inclusive capitalism” and embrace broad-based job creation while curbing excessive inequality.
“You cannot be a good house in a rapidly deteriorating neighborhood,” he told me. “The credibility and the fair functioning of the neighborhood matter a great deal. Without that, the integrity of the capitalist system will weaken further.”
Lawrence Katz, a Harvard economist, adds that some inequality is necessary to create incentives in a capitalist economy but that “too much inequality can harm the efficient operation of the economy.” In particular, he says, excessive inequality can have two perverse consequences: first, the very wealthy lobby for favors, contracts and bailouts that distort markets; and, second, growing inequality undermines the ability of the poorest to invest in their own education.
“These factors mean that high inequality can generate further high inequality and eventually poor economic growth,” Professor Katz said.
Does that ring a bell?
So, yes, we face a threat to our capitalist system. But it’s not coming from half-naked anarchists manning the barricades at Occupy Wall Street protests. Rather, it comes from pinstriped apologists for a financial system that glides along without enough of the discipline of failure and that produces soaring inequality, socialist bank bailouts and unaccountable executives.
It’s time to take the crony out of capitalism, right here at home.
By: Nicholas D. Kristof, Op-Ed Columnist, The New York Times, October 26, 2011
“Pay-For-Delay”: Ending Drug Companies’ Deals
An upcoming report by the Federal Trade Commission shows that brand-name pharmaceutical makers continue to cut questionable deals with generic manufacturers that delay the introduction of cheaper drugs onto the market.
Such pay-for-delay arrangements hurt consumers and increase costs for federal programs such as Medicare and Medicaid, according to the report, a copy of which was obtained by the editorial board. These deals are not illegal, but they should be.
Pharmaceutical companies rightly enjoy strong protections for products that often take years and billions of dollars to develop. These protections were so strong at one point that they discouraged would-be competitors from jumping in. The Hatch-Waxman Act of 1984 meant to address this problem by allowing generics to market “bio-equivalent” drugs as long as they did not infringe on the brand-name drug’s patent; the generic could also proceed if it proved the brand-name patent was invalid. The goal was to enhance competition and lower drug prices. That goal is thwarted when brand-name manufacturers engage in the popular practice of paying generic-drug makers to keep their products off the market.
In 2004, the FTC did not identify a single settlement in a patent litigation matter involving drug makers that raised pay-for-delay concerns. In its new report, the agency points to 28 cases that bear the telltale signs of pay-for-delay, including “compensation to the generic manufacturer and a restriction on the generic manufacturer’s ability to market its product.”
Sens. Charles E. Grassley (R-Iowa) and Herb Kohl (D-Wis.) have introduced the Preserve Access to Affordable Generics Act to close the pay-for-delay loophole. The bill would make such schemes presumptively illegal and empower the FTC to challenge suspicious arrangements in federal court. The most recent version gives companies a chance to preserve certain deals if “clear and convincing evidence” proves that their “pro-competitive benefits outweigh the anti-competitive harms.” The Obama administration estimates that eliminating pay-for-delay could save the government $8.8 billion over 10 years; the Congressional Budget Office offers a dramatically more conservative savings estimate of roughly $3 billion over the same period.
The legislation should appeal to the deficit-reduction “supercommittee,” which has been tasked with identifying ways to cut the federal deficit.
By: Editorial Board Opinion, The Washington Post, October 24, 2011
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