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Speaker Boehner’s Folly Leads To Standard And Poor’s Downgrade Of US Debt

I’m no expert, but I don’t think S&P downgrading its rating of US debt will, as such, have any really big practical implications other than becoming the next political football. If you look at S&P’s definition of the AA rating, after all, it says:

“An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.”

Scared yet? Me neither.

The issue today continues to be what it was a week ago. For years now, if you look at a projection from CBO or OMB it shows a spending curve that steadily accelerates. It accelerates because the government currently pays for health care for old people and for poor people, and because the cost of health care services has been accelerating.

Consequently, for a long time now it’s been clear that in the future either the US has to stop paying for old people’s health care, or else raise more revenue in taxes, or else reduce the growth in the price of health care services. And for a long time now it’s been unclear what combination of those strategies will be adopted. But people have generally had confidence that some combination of them would be adopted.

Once upon a time earlier in the Obama administration, I asked a senior official how he thought this would ever get resolved. A deal, everyone agreed, had to be bipartisan. But to be bipartisan, it would have to include tax increases. But Republicans wouldn’t vote for tax increases. He told me that of course that made sense, but at some point pressure from bond markets would be unbearable and Republicans would come to the table.

Broadly speaking, that’s the thing that most people generally believed would happen. What we saw with the debt ceiling was a mini-test of that theory, and the theory failed. “No new revenues” wasn’t just a GOP bargaining position, it turned out to be something they were really committed to even in the face of an imminent financial crisis. You can see why that would dent confidence in the long-term fiscal trajectory of the country.

The person who looks bad here, in my view, is John Boehner. President Obama wanted to do a “grand bargain.” The Gang of Six Senators wanted to do a “grand bargain.” And it looked for a moment like Speaker Boehner was going to be part of a grand bargain. But ultimately he decided that he didn’t want to sign a deal that would fracture his caucus, so the grand bargain talks fell apart. And yet the little bargain that did eventually pass the House ultimately couldn’t pass with Republican votes alone. So what did Boehner really achieve? If he was ultimately destined to strike a deal with the White House that needed Democratic votes to pass the House, why not go for the grand bargain? According to Boehner “When you look at this final agreement that we came to with the white House, I got 98 percent of what I wanted. I’m pretty happy.”

How happy is he now?

 

By: Matthew Yglesias, Think Progress, August 5, 2011

August 6, 2011 Posted by | Congress, Conservatives, Consumer Credit, Consumers, Debt Ceiling, Debt Crisis, Economic Recovery, Economy, GOP, Government, Health Care, Ideologues, Ideology, Lawmakers, Middle Class, Politics, President Obama, Republicans, Right Wing, Tax Loopholes, Taxes, Teaparty | , , , , , , , , , , | Leave a comment

The FAA Shutdown And The New Rules Of Washington

Congressman John Mica, the Florida Republican blamed for single-handedlyshutting down the Federal Aviation Administration, sounded like a beaten man when he called me Thursday evening.

The usually biting chairman of the House transportation committee spoke with remorse about the standoff, which put 74,000 people on furlough or out of work, delayed airport-safety projects and cost hundreds of millions of taxpayer dollars.

“I’ve had a brutal week, getting beat up by everybody,” Mica told me, minutes after Senate Majority Leader Harry Reid announced a deal that would end the shutdown and avoid the cuts to regional air service that Mica wanted.

“I didn’t know it would cause this much consternation,” Mica said. “Now I’ve just got to get the broom and the shovel and clean up the mess.” Switching metaphors, he said he wanted “to unclog the toilet, but it backed up. So I don’t know what to do, what to say.”

One thing he’s going to do is make amends. He said he would introduce legislation Friday to pay FAA workers for their furlough days. “We just want to cheer all those workers who have been left out on a limb by this,” he explained.

Mica’s experience shows the high-risk nature of business in the new Washington, where even routine issues like FAA funding can become conflagrations. With no goodwill between the two parties, or the two chambers, ordinary disagreements mushroom into governing crises, with unpredictable results.

In the debt-limit standoff, Democrats capitulated to most Republican demands to avoid a default. In the FAA confrontation, Republicans pursued similar brinkmanship — but this time Democrats resisted, let the shutdown happen and, at least in Mica’s view, won the fight.

Mica started out with a sensible aim: He wanted to clean up years of messy funding for the FAA. Lawmakers hadn’t been able to agree on issues such as rural-airport subsidies and landing slots at Reagan National, so they kept the agency going with 20 stop-gap funding bills since 2007.

But Mica overreached. Letting his anti-labor ideology take over, he tried to use the FAA bill to overturn a decision by the National Mediation Board to rescind an old rule that had made it unusually difficult for airline workers to organize. Delta Air Lines furiously lobbied Congress to intervene.

Mica knew Senate Democrats would resist, so he tried to create a bargaining chit: He drafted plans to cut funds for small airports in the home states of Reid (Nev.) and Jay Rockefeller (W.Va.), chairman of the Senate transportation panel.

The Floridian publicly admitted his ruse. “It’s just a tool to try to motivate some action” on the labor rule, he told a group of airport executives last month, according to Aviation Daily. “I didn’t plan it to be this national issue,” he told me.

Senate Democrats, seizing on Mica’s admission that the bill was a “tool,” refused to deal. They let the shutdown happen and railed against Mica after lawmakers left for recess.

Reid accused him of taking “hostages.” House Minority Whip Steny Hoyer pointed out that the shutdown cost taxpayers more than the program Mica tried to cut. Privately, Mica’s GOP colleagues harshly criticized him.

The Orlando Sentinel, near Mica’s district, took the congressman to task and said it was “pathetic” that “members of Congress now are enjoying their summer vacations, while some essential FAA inspectors are working without pay.”

On Thursday, Democrats announced a plan to reopen the FAA and said they would use waivers from Transportation Secretary Ray LaHood to avoid Mica’s rural airport cuts. Mica, pronouncing himself thwarted, said he was stunned that Democrats took Republicans “by the short hairs,” as he put it. “Quite honestly we did not expect that.”

They should have. The 10-term lawmaker was operating under archaic rules. “In our business, you use your legislative tools . . . and put a little leverage on it,” he said. “How else do I do it? Am I going to send them a bouquet?”

But Mica, as much as anybody, created a culture of distrust, where staking out bargaining positions leads not to compromise but to warfare. And now he’s surprised?

“People don’t have to get so personal,” he said with a sigh. “A lot of people hate me now and think I’m the worst thing in the world for what I did.” It’s “this sort of gotcha,” he said, “that’s changed the dynamics of people working more effectively together.”

Hopefully he’ll remember that the next time he sticks it to the other side.

By: Dana Milbank, Opinion Writer, The Washington Post, August 4, 2011

August 6, 2011 Posted by | Congress, Conservatives, Democrats, GOP, Government, Government Shut Down, Ideologues, Ideology, Jobs, Labor, Lawmakers, Lobbyists, Politics, Public, Public Employees, Republicans, Right Wing, Union Busting, Unions | , , , , , , , , , , , , , , | 1 Comment

Crime Pays: Mitch McConnell, Hostage Taker

This quote from Senate Minority Leader Mitch McConnell (R-Ky.) has been making the rounds today, and with good reason. It’s interesting from a variety of angles.

After [the debt-ceiling fight] was all over, Obama seemed to speak for revolted Americans — the kind of people who always want a new Washington — when he described the government as “dysfunctional.”

But at the Capitol, behind the four doors and the three receptionists and the police guard, McConnell said he could imagine doing this again.

“I think some of our members may have thought the default issue was a hostage you might take a chance at shooting,” he said. “Most of us didn’t think that. What we did learn is this — it’s a hostage that’s worth ransoming. And it focuses the Congress on something that must be done.”

Let’s unpack this a bit.

First, after this brutal fiasco undermined the economy and made the United States an international laughingstock, the leading Senate Republican fully expects to do this again. McConnell believes his party has “learned” the value in pursuing this, regardless of the consequences. I wonder if voters might want to consider this before the 2012 elections.

Second, it’s a little surprising to hear him concede that “most” Republicans didn’t think the hostage should be shot. If that’s true, maybe next time, Democrats shouldn’t pay the ransom?

And third, note that McConnell was quite candid in his choice of words. It’s not just Democrats talking about Republicans taking “hostages” and demanding “ransoms”; here’s the leading Senate Republican using the exact same language. In other words, Mitch McConnell admitted, out loud and on the record, that his party took the full faith and credit of the United States hostage, demanded a ransom, and they fully intend to do it again.

Given all of this, it’s rather bizarre for Republicans to complain about being equated with terrorists. As Dave Weigel noted yesterday, “If you don’t want your opponent to label you a hostage-taker, here’s an idea: Don’t take hostages.”

By: Steve Benen, Contributing Writer, Washington Monthly-Political Animal, August 3, 2011

August 4, 2011 Posted by | Class Warfare, Congress, Conservatives, Debt Ceiling, Debt Crisis, Deficits, Democracy, Democrats, Economic Recovery, Economy, Elections, GOP, Ideologues, Ideology, Lawmakers, Middle East, Politics, Public Opinion, Republicans, Right Wing, Teaparty, Voters | , , , , , , | Leave a comment

Basic Civility: Who Will Teach Congress to Behave?

To make sense of the  vitriol, lack of cooperative spirit and just bad manners being displayed on  Capitol Hill, look no further than Massachusetts.

It’s not that the Bay State is unusually mean or even  rude. Visitors flocking to the Cape, the Berkshires or Boston’s North End will  surely find friendly people. But recent news in Massachusetts demonstrates just  how high our tolerance for—even celebration of—bad behavior has become.

The Boston Globe informs us  that the Boston School Committee is drafting rules for basic civility  at its  public meetings. This is not a response to shouting and  disruption by children,  who by definition are still learning how to  behave in public and how to  adjudicate disagreements with honor and  mutual respect. No, the school  committee’s actions are a sad response  to the heckling and all-around disrespect  shown by adults—parents and  teachers—who have been unhappy with school closings  and other matters  before the committee. Disruptive students have been at the  meetings,  too, which makes it worse, since the lesson they are learning at the   meetings is that it’s acceptable to shout and be rude to display one’s   unhappiness with a public policy. One protestor last December yelled  “liar”  at Superintendent Carol R. Johnson. Was this individual merely  parroting the  behavior of Rep. Joe Wilson, who yelled, “You lie!” at the President of the  United States during a live, nationally-televised speech in the House chamber?

Remarkably, some of the adult activists have not been  shamed at the  fact that they must be treated as recalcitrant children. The Globe  quotes the teacher’s union  president, Richard Stutman, jokingly  comparing the decorum rules to Stalinist  Russia. That’s not only an  insult to the people who lived in the brutal  dictatorial regime, but an  insult to public education. Surely, teachers do not  instruct their  students that self-control and civility are akin to  totalitarianism.

But if the school meetings aren’t distressing enough,  Massachusetts  can look to its professional football team, the New England  Patriots.  The team recently signed Albert Haynesworth, whose behavior, on and  off  the field, was so poor that the Washington Redskins couldn’t stomach  him  anymore. In sports, the bad boys are often given a pass if their  on-field  passes are complete. But Haynesworth—who was paid $35 million  to play in 20  games and didn’t always show up for practice because he  didn’t like the coach’s  defense strategy—became just too much for the  ‘Skins, who traded him to the  Patriots for a fifth-round draft pick. At  least Haynesworth won’t be a double burden to the Pats, since Randy  Moss, another behavior problem, left the team last year and announced  Tuesday he would retire from the sport. Defenders note that Patriots  coach Bill Belichick whipped Moss into shape. Haynesworth could be a  heavier list; at one point, he was juggling four different legal cases  against him even as he feuded publically with his coach.

We should expect more from members of Congress, who have  been  through campaigns and theoretically should know better. But the  public—even  as they deride the dysfunction and bad manners in the  Capitol—are enablers,  rewarding malcontented lawmakers with campaign  contributions. Republican Wilson  and former Democratic  Rep. Alan Grayson, who famously accused Republicans of  wanting people  to die as a way of saving on health costs, were two of the  biggest  fundraisers last election cycle, with much of the cash coming from out   of state. Grayson lost, but the message was clear: acting up is  profitable. And  both Democrats and Republicans are raising money off  the recent uproar over  Republican Rep. Allen West, a Tea Party movement favorite who sent an email to  a colleague, Democratic Rep. Debbie Wasserman Schultz,  calling her “the most  vile” member of the House. Wasserman Schultz had  criticized West’s approach to  Medicare, although she did not name him  in the floor speech that led West to  accuse Wasserman-Schultz of not  acting like “a Lady.”

The Boston School Committee may be able to teach civility  to adults  who apparently never learned how to sit still and listen. And perhaps   Belichick can control Haynesworth. Who will do the same for members of   Congress?

 

By: Susan Milligan, U. S. News and World Report, August 2, 2011

August 2, 2011 Posted by | Congress, Conservatives, Democracy, Democrats, GOP, Government, Lawmakers, Politics, Public Opinion, Republicans, Right Wing, Teaparty | , , , , , , , , , , , , , , , | Leave a comment

The Tea Fragger Party: Remember Their Names

Fragging: “To intentionally kill or wound (one’s superior officer, etc.), esp. with a hand grenade.”

Take names. Remember them. The behavior of certain Republicans who call themselves Tea Party conservatives makes them the most destructive posse of misguided “patriots” we’ve seen in recent memory.

If the nation defaults on its financial obligations, the blame belongs to the Tea Party Republicans who fragged their own leader, John Boehner. They had victory in their hands and couldn’t bring themselves to support his debt-ceiling plan, which, if not perfect, was more than anyone could have imagined just a few months ago. No new taxes, significant spending cuts, a temporary debt-ceiling solution with the possibility of more spending cuts down the line as well as action on their beloved balanced-budget amendment to the Constitution.

These people wouldn’t recognize a hot fudge sundae if the cherry started talking to them.

The tick-tock of the debt-ceiling debate is too long for this space, but the bottom line is that the Tea Party got too full of itself with help from certain characters whose names you’ll want to remember when things go south. They include, among others, media personalities who need no further recognition; a handful of media-created “leaders,” including Tea Party Nation founder Judson Phillips and Tea Party Patriots co-founders Jenny Beth Martin and Mark Meckler (both Phillips and Martin declared bankruptcy, yet they’re advising Tea Party Republicans on debt?); a handful of outside groups that love to hurl ad hominems such as “elite” and “inside the Beltway” when talking about people like Boehner when they are, in fact, the elite (FreedomWorks, Heritage Action, Club for Growth, National Taxpayers Union, Americans for Prosperity); and elected leaders such as Minnesota Rep. Michele Bachmann, Ohio Rep. Jim Jordan, head of the Republican Study Committee, and South Carolina Sen. Jim DeMint, who grandstand and make political assertions and promises that are sheer fantasy.

Meanwhile, freshman House members were targeted and pressured by some of the aforementioned groups to vote against Boehner’s plan. South Carolina’s contingent was so troubled that members repaired to the chapel Thursday to pray and emerged promising to vote no. Why? Not because Jesus told them to but because they’re scared to death that DeMint will “primary” them — find someone in their own party to challenge them.

Where did they get an idea like that? Look no further than Sarah Palin’s Facebook page, where she warned freshmen about contested primaries and urged them to “remember us ‘little people’ who believed in them, donated to their campaigns, spent hours tirelessly volunteering for them, and trusted them with our votes.” Her close: “P.S. Everyone I talk to still believes in contested primaries.” While they’re at it, they also should remember that Palin came to the Tea Party long after the invitations went out. The woman knows where to hitch a wagon.

Unfortunately for the country, which is poised to lose its place as the world’s most-trusted treasury and suffer economic repercussions we can ill afford, the stakes in this political game are too high to be in the hands of Tea Partyers who mistakenly think they have a mandate. Their sweep in the 2010 election was the exclusive result of anti-Obama sentiment and the sense that the president, in creating a health-care plan instead of focusing on jobs, had overplayed his hand. Invariably, as political pendulums swing, the victors become the very thing they sought to defeat.

Who’s overplaying their hand now?

It must be said that the Tea Party has not been monolithic — and the true grass-roots shouldn’t be conflated with leaders who disastrously signed on to the so-called “Cut, Cap and Balance” pledge. What is it with Republicans and their silly pledges? Didn’t they get enough Scouting? This pledge now has them hog-tied to a promise they can’t keep — the balanced-budget amendment. As many as a third desperately want a pardon from that commitment, according to sources close to the action.

Hubris is no one’s friend, and irony is a nag. The Tea Partyers who wanted to oust Barack Obama have greatly enhanced his chances for reelection by undermining their own leader and damaging the country in the process. The debt ceiling may have been raised and the crisis averted by the time this column appears, but that event should not erase the memory of what transpired. The Tea Party was a movement that changed the conversation in Washington, but it has steeped too long and has become toxic.

It’s time to toss it out.

 

By: Kathleen Parker, Opinion Writer, The Washington Post, July 29, 2011

August 1, 2011 Posted by | Class Warfare, Congress, Conservatives, Consumers, Debt Ceiling, Debt Crisis, Deficits, Democracy, Democrats, Economic Recovery, Economy, Elections, GOP, Government, Ideologues, Ideology, Journalists, Lawmakers, Lobbyists, Media, Middle Class, Politics, President Obama, Press, Public, Pundits, Republicans, Right Wing, Teaparty, Wealthy | , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment