“The Big Problem With Paul Ryan’s New Poverty Plan”: Accountability Is Only Required Of Poor People
Today, Rep. Paul Ryan is unveiling his latest idea to change the federal government’s poverty programs. For someone who is constantly saying how concerned he is about poverty, Ryan’s previous budgets have relied an awful lot on slashing benefits to poor people. But this time, he promises that his proposal doesn’t cut benefits, but merely reorganizes them. Some parts of the proposal might be worthwhile. But it’s hard to avoid the conclusion that it’s still driven by the longstanding conservative desire to limit the help we give to the poor.
The centerpiece of the proposal is a consolidation of multiple separate programs into a single block grant that would be given to states; they could decide how to dispense the money, and the federal government’s job would essentially be reduced to oversight. States would choose whether or not to participate.
This sounds reasonable until you start to think about how it would play out. In practice, it’s likely that the states most eager to sign on would be precisely those that aren’t too happy about the ways the federal government provides benefits now. The devil would be in the details; what if a state decided to take its entire block grant and devote it to giving lectures to poor people on why they should get married? There could be a lot of needs going unmet while states implement their ideologically-driven visions of how poverty ought to be addressed.
Ryan’s plan assumes that the same Republican states that rejected the federal government’s offer to insure poor citizens through the expansion of Medicaid — in other words, who would rather see poor people go uninsured than get coverage from the government — are now going to be spectacularly committed and creative in working to help those same poor citizens through their time of need. Color me skeptical.
Ryan insists his plan would hold funding for these programs constant, not cut them. But it’s more complicated than that. Conservatives have long advocated block-granting of poverty programs, always with the justification that states will better deliver assistance to poor Americans if they aren’t hamstrung by requirements from Washington. But there’s little evidence that block granting accomplishes anything other than making it easier for these programs to be cut in future years or simply whittled away by inflation. As Jared Bernstein points out, Temporary Assistance to Needy Families, which we used to call “welfare,” was block-granted in 1996 and has since then seen its value slashed by 30 percent in inflation-adjusted terms.
One of the real dangers of Ryan’s approach is that it would render the programs unable to deal with economic downturns unless Congress stepped in and supplied more money, which would be unlikely as long as Republicans control at least one house. So for instance, right now the food stamp program is an entitlement; if you meet eligibility standards you’re entitled to food stamps. The program can never run out of money in a given year. When the Great Recession hit, millions of Americans found themselves newly out of work and thus eligible for food stamps.
But under Ryan’s program, food stamps would be part of a block grant whose total amount is fixed. If and when another recession hit, states would be flooded with people who needed assistance, but they’d have the same limited sum of money they got at the beginning of the year. So they’d either have to turn people away or find a way to rob Peter to pay Paul, taking money out of other poverty programs to meet the increased need for food.
(There’s a brief discussion of inserting a provision into the plan to account for this kind of eventuality, but it seems neither particularly well thought-out nor nearly adequate to address what could be a major need.)
Ryan’s plan would also require “accountability” from those receiving assistance, in the form of time-limited benefits and work requirements (how you satisfy those requirements when people can’t find work is its own sad story). This too is a hallmark of the Republican approach to poverty programs, in which poor people have to jump through hoops to demonstrate their moral worth to get benefits. “Accountability” is something that is required of poor people, and only poor people. Farmers who get government subsidies don’t have to be “accountable.” Nor do government contractors who waste huge amounts of taxpayer money. Only the poor are forced to pee in a cup or account for their time or endure a hundred other petty humiliations, so we can be sure that if they get any government assistance they have proven themselves to be morally upstanding enough to deserve help.
That isn’t to say there’s nothing worthwhile in Ryan’s proposal. As he writes in a USA Today op-ed, “Right now, you have to go to a bunch of different offices to enroll in a bunch of different programs, often with different paperwork requirements and eligibility standards. Under the Opportunity Grant, you could go to one office and work with one person.” As anyone who has tried to apply for assistance knows, the paperwork requirements seem designed to hold down enrollment by making it as difficult as possible to apply. Streamlining that process would be terrific.
While this plan isn’t going to become law (at least not any time soon), it does serve a political purpose of showing that Republicans are thinking about poverty, and Ryan isn’t the only one in his party trying to revive “compassionate conservatism.” We can give him credit for addressing the issue. If only there was more reason to believe his ideas would do much to help Americans who are struggling.
By: Paul Waldman, Contributing Editor, The American Prospect; Published at The Plum Line, The Washington Post, July 24, 2014
“Paul Ryan’s Glossy New Poverty Plan”: Not Much Doubt What The Effect On Poor People Will Be
Every year or so Paul Ryan comes up with a glossy new plan to deal with poverty or spending on social programs. The plans never go anywhere, but they’re not really intended to: They’re designed to make the Republican Party (and Mr. Ryan himself) appear more thoughtful than it actually is on these subjects.
The one he released today is somewhat better than previous efforts, in that it doesn’t propose massive cuts in overall spending (unlike his House budgets), and would even increase the Earned Income Tax Credit, one of the government’s most successful anti-poverty programs. Democrats have also embraced a larger credit, although unlike Mr. Ryan, they would pay for it by raising taxes on the rich rather than slashing federal nutrition programs that Mr. Ryan thinks are a waste of money.
But the lack of seriousness in the plan is demonstrated by its supposedly big idea: It would combine 11 of the most important federal poverty programs into something called an “opportunity grant” that would be given to the states to spend as they see fit. The eliminated programs would include food stamps, what remains of the welfare system (known as Temporary Assistance to Needy Families), Section 8 housing vouchers, and low-income heating assistance, among others.
This technique should sound familiar. Members of Mr. Ryan’s party have spent years promoting the idea that states can do things better than Washington. As Rick Santorum repeated endlessly in 2012, “Cap it, cut it, freeze it, and block-grant it to the states.” Mr. Ryan’s running mate that year, Mitt Romney, would have turned all of Medicaid into a block grant system dumped onto the steps of 50 state capitols.
Putting programs like food stamps into a block grant means they could not be expanded on a national basis during economic emergencies, when unemployment or poverty soars. If a state were to have a budget crisis, perhaps due to tax cuts, social spending would be the first to go.
The broader problem is the sharp division between the states, which exposes the gap between Mr. Ryan’s attempt at high-mindedness and the petty grievances of the Republican majority. The proponents of these consolidation ideas know that while blue states would shoulder their responsibilities and protect their poorest residents, many red states would not. If Washington were not in the anti-poverty business, Republicans would have an opportunity to reduce spending on social programs in about half the country.
The attitude of red states toward social spending has been made brutally clear by their reaction to the Affordable Care Act. In 36 states, lawmakers refused to set up health care exchanges, putting the insurance subsidies for poor people at risk if a recent court decision is upheld. And only 27 states, including the District of Columbia, have agreed to expand their Medicaid programs. The effect on lowering the number of uninsured people in states with expanded programs is clear, but lawmakers elsewhere don’t care.
In Florida, the Republicans who rule the state have not created exchanges or expanded Medicaid, and have offered nothing to the 760,000 state residents with no insurance. The state has even banned volunteers who were helping poor people sign up for the federal exchange. The president of the Florida Senate, Don Gaetz, summed up the prevailing attitude perfectly this week: “As long as I serve in the Senate, I will never support the state of Florida serving as the instrument by which individuals and businesses are forced into a federal mandate to purchase a health insurance product they may not want.”
Mr. Ryan would never say so, but the real effect of his plan is to turn over a series of highly successful federal poverty programs into the hands of Don Gaetz and other anti-government ideologues. There’s not much doubt what the effect on poor people would be.
By: David Firestone, Taking Note, The Editorial Page Editors Blog; The New York Times, July 24, 2014
“Soft Bigotry Of Low Expectations”: The Right’s Pathetically Low Curve; How It Got A Pass On Race And Poverty
Rep. Paul Ryan, budget-slasher, releases a paternalistic poverty plan that has one good idea. Sen. Rand Paul, Civil Rights Act skeptic, speaks to the African-American National Urban League. The Koch brothers, backers of voter suppression efforts and union busting, give $25 million to the United Negro College Fund.
And each winds up hailed, even by some liberals, as taking a big step for the Republican Party when it comes to questions of race and poverty. Why do people settle for so little when it comes to the right trying to signal a change in its damaging approach to both?
Ryan’s one good idea is expanding the earned income tax credit, originally a Republican policy that Republicans turned against because Democrats embraced it too. The EITC is one big reason for the “47 percent” of people who pay no taxes that Ryan’s running mate railed against. Now Ryan says he wants to expand it, and some other programs – which doesn’t square with his infamous budget proposals of recent years.
So MSNBC’s Chuck Todd politely asked Ryan to reconcile his poverty plan with his budget plan – which cuts $5 trillion over 10 years, and takes 69 percent of the cuts from low- and moderate-income families – and he couldn’t do it.
“Does this mean you would change your budget proposal to reflect your new poverty plan?” Todd asked.
“No,” Ryan answered. “I didn’t want to get into a debate over the funding levels of the status quo. I want to talk about how to reform the status quo.”
Todd tried again. “So we should ignore your budget proposal for these programs?”
“No, Chuck, what I’m trying to tell you is, let’s not focus on dollars and cents for these programs,” Ryan replied, a little peevishly. “Let’s focus on reforming these programs so they work more effectively.”
Paul Ryan: a profile in equivocation.
Then there’s Rand Paul, continuing his “outreach” to African-Americans with his visit to the Urban League annual convention. Paul actually deserves credit for trying to tackle issues of criminal justice reform with Sen. Cory Booker. But in his Friday speech he also seemed to decry voter suppression laws, insisting his goal is to “help more people vote,” in the words of the Louisville Courier-Journal.
“We have to be together to defend the rights of all minorities,” Paul said.
But Paul flip-flops on this issue every chance he gets. “I don’t think there is objective evidence that we’re precluding African-Americans from voting any longer,” he said last year, after the Supreme Court curtailed the Voting Rights Act. But a few months later, he seemed to have second thoughts.
“Everybody’s gone completely crazy on this voter-ID thing,” Paul the New York Times. “I think it’s wrong for Republicans to go too crazy on this issue because it’s offending people.”
That was big news. But then, confronted by his friends at Fox, he lurched into reverse. Paul assured Sean Hannity he was fully on board with the Republican voter ID strategy. “No, I agree there’s nothing wrong with it. To see Eric Holder you’ve got to show your driver’s license to get in the building. So I don’t really object to having some rules for how we vote. I show my driver’s license every time I vote in Kentucky … and I don’t feel like it is a great burden. So it’s funny that it got reported that way.”
“It’s funny it got reported that way,” when that’s what Paul said. Maybe that’s where Paul Ryan learned how to equivocate.
Then there are the Koch brothers. I said everything I needed to in this story. I’m sympathetic to the UNCF wanting more scholarship funding. But “Koch scholars”? A no-strings gift would be one thing, but scholarships Koch foundation appointees help award, based on a student’s affinity for “entrepreneurship” and the free market is something else entirely.
Liberals who applaud UNCF taking the money, and decry AFSCME’s parting ways with the group, insist it’s possible to separate the principle of education for black children from the Kochs’ funding of efforts to break unions in the public sector – which disproportionately employ their parents – and suppress their voting rights.
But it’s true that all of these moves are preferable to outright race baiting and demonizing black people and the poor, so liberals give them extra credit. Applauding minimal GOP gestures toward decency reflects the soft bigotry of low expectations once again.
By: Joan Walsh, Editor at Large, Salon, July 25, 2014
“The Koch-Tested, Koch-Approved Version”: Paul Ryan’s Faux Populism Isn’t Going To End Poverty Or Reduce Inequality
Paul Ryan’s fellow Republicans are quick to dismiss Elizabeth Warren as too radical, too progressive, too populist.
But Ryan is trying—a bit clumsily, but trying all the same—to borrow a page from the Massachusetts senator as he seeks to remake himself in anticipation of a potential 2016 run for the Republican presidential nomination. He’s talking about poverty, about inequality, about shifting the focus away from meeting the demands of corporations and toward meeting the needs of Americans.
Mitt Romney’s running mate is abandoning Romneyism for populism—or what former Secretary of Labor Robert Reich has referred to as “Paul Ryan’s Faux Populism.”
Instead of repeating the Mittnomers of 2012—“Corporations are people, my friend”—Ryan is suddenly informing fellow conservatives, “There’s another fallacy popular among our ranks. Just as some think anything government does is wrong, others think anything business does is right. But in fact they’re two sides of the same coin. Both big government and big business like to stack the deck in their favor. And though they are sometimes adversaries, they are far too often allies.”
It is hard to argue with Ryan’s reasoning. Populists and progressives have warned for more than a century that corporations are “boldly marching, not for economic conquests only, but for political power.” The author of those words, former Wisconsin Supreme Court Justice Edward Ryan , asked in 1873: “Which shall rule—wealth or man; which shall lead—money or intellect; who shall fill public stations—educated and patriotic free men, or the feudal serfs of corporate capital?” Elizabeth Warren confirmed Ryan’s worst fears when she addressed Netroots Nation last week and declared, “The game is rigged and the rich and the powerful have lobbyists and lawyers and plenty of friends in Congress. Everybody else, not so much.”
And now, Paul Ryan is on-message, announcing as only a career politician can, that “our country has had enough of politics.” He’s proposing to “reconceive the federal government’s role in the fight against poverty.” And he is even ripping corporations, decrying the way in which big government has become “a willing accomplice” of big business.
Ryan explained last week at Hillsdale College’s Center for Constitutional Studies and Citizenship session that “crony capitalism isn’t a side effect; it’s a direct result of big government.”
Grab the pitchforks!
But don’t look for Paul Ryan on the front lines of actual fights to reduce inequality or address injustice.
The House Budget Committee chairman, who on Thursday released an “anti-poverty proposal” that rehashed decades-old schemes to scale back anti-poverty initiatives and regulatory protections for low-income Americans, offers scant evidence of a serious determination to solve the problems that have got Americans up in arms. If Ryan was serious, he wouldn’t be proposing, as his “Opportunity Grant” plan does, to “consolidate” existing federal programs to aid the poor into block grants to the states—an approach that would allow Republican governors who have already shown a penchant for undermining healthcare, food-stamp and education initiatives the “flexibility” to do even more harm.
Congressman Chris Van Hollen, a Maryland Democrat who serves with Ryan on the Budget Committee, nails it when he warns about a proposal that “uses the sunny language of ‘reform’ as a guise to cut vital safety-net programs.”
So if the congressman is not worried about developing a serious response to the problem of inequality, what is on his mind?
Ryan is worried about solving his own problem: an association in the public’s mind with the failed messages of the 2012 Romney-Ryan campaign.
Last week’s populist speech at the Center for Constitutional Studies and Citizenship and this week’s poverty speech at the American Enterprise Institute begin the roll-out of Paul Ryan Version 2.0. Next comes the August publication of Ryan’s 2016 campaign book, The Way Forward: Renewing the American Idea, complete with its epic cover shot of Americans reaching out to touch a triumphal Ryan. Then there’s the bus tour.
Yes, the bus tour.
So Ryan is campaigning. To the extent that it is possible he will do so in populist style and with populist rhetoric about crony capitalism and fighting poverty.
But don’t be confused.
This is still the same Paul Ryan who went to the floor of the House in 2008 and rallied Republicans to support the Wall Street bailout. This is still the same Paul Ryan who opposed regulation of the big banks. This is still the same Paul Ryan who supported and continues to support) the free trade deals demanded by multinational corporations. This is still the same Paul Ryan who has peddled Social Security, Medicaid and Medicare “reforms” that would turn sound programs into vehicles for steering federal funds into the accounts of Wall Street speculators and health-insurance corporations.
This is still the same Paul Ryan who during the current election cycle has padded his campaign committee and “leadership PAC” accounts with almost $9 million in donations—with Wall Street securities and investment interests and the health-insurance industry giving most generously. And this is the same Paul Ryan who, when Congress took its August break in 2013 jetted home to Wisconsin via Arizona—where he was a featured speaker at the annual retreat for billionaire donors organized by the Koch brothers.
The other featured speaker was then–House majority leader Eric Cantor, for whom the ensuing months did not go well. Cantor’s Republican primary defeat—at the hands of a critic of “crony capitalism”—provided an indication that the American people are increasingly agitated. And increasingly disinclined toward the sort of insider politics practiced by career politicians such as Ryan.
Ryan got the signal.
He is rebranding himself.
He has downloaded some populist rhetoric to go with his “kinder, gentler” talk about poverty.
But Paul Ryan’s populism is not the real thing. It’s the Koch-tested, Koch-approved version.
By: John Nichols, The Nation, July 24, 2014
“Ryan The Wonk Losing His Street Cred”: He’s Clearly Overdrawn At The Intellectual Credit Bank
In all the recent attention being paid to “Reform Conservatives” (some galvanized by Sam Tanenhaus’ lengthy profile in this weekend’s New York Times Magazine), a glaring absence has been noted in the sparse ranks of the reform movement’s political sponsors. Yes, one-time Super Wonk Paul Ryan, who until recently epitomized Big Brains in the GOP, is nowhere to be seen, and may actually be diverging from the reformers on key tax and budget issues.
Jonathan Chait argues that the cool pragmatism of the Reform Conservatives is at odds with the “apocalyptic” attitude towards Obama and liberalism that Ryan shares with the Tea Folk. But TNR’s Brian Beutler is more precise in noting that the reformicons’ antipathy to the tax agenda of the business community and support for “family-friendly” tax policies is at odds with where Ryan is likely to go as the next chairman of the House Ways & Means Committee:
In his most recent budget, Ryan emphasized his support for a tax reform package that would, among other things, reduce the current seven tax brackets to two, at 25 and 10 percent rates. The dual-bracket structure has long been the dream goal of conservative, supply-side tax reform. It would not just simplify the code, a goal even liberals share. It would also reduce rates on the wealthy. But such a plan could not be revenue-neutral without sharply increasing middle class taxes. It’s a mathematical certainty.
And such a plan is definitely at odds with the reformicons’ stated concern that the conservative movement’s fiscal policies are in danger of fatally alienating middle-class voters, and even the GOP’s critical white working class constituency.
It’s worth remembering, of course, that Ryan’s hardly the only ambitious GOP pol who’s likely to prefer praise from the Wall Street Journal‘s editorial board than from the reformicon ranks. So it’s hardly a good betting proposition that the reformers’ fiscal priorities will find champions among the 2016 GOP presidential field, even if Marco Rubio regains his pre-immigration-reform standing.
But for the moment, it’s refreshing to see that Ryan looks more and more like a standard GOP business hack with an unhealthy addiction to Ayn Rand novels, and less and less like the Brains of the GOP. He’s certainly overdrawn at the intellectual credit bank.
By: Ed Kilgore, Contributing Editor, Washington Monthly Political Animal, July 8, 2014
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