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“A Virtual War On The Poor And Middle Class”: Give House Republicans Credit For Producing A Budget This Cruel

Everyone condemns politicians for being too quick to pander, too concerned with doing the popular thing, too willing to hide what they really believe in order to curry favor with an unmerciful electorate. So when a group of politicians throws caution to the wind and tells us what they really think despite the political risk, they deserve our praise. So it is with the House Republicans, who have just released their new budget.

That isn’t to say the budget is free of gimmickry or outlandish projections (we’ll get to that in a moment). But let’s look at some of the rather notable things it would do:

Turn Medicare into a voucher program. This is accompanied by a lot of rhetoric about how the magic of the market will hold down costs (just as it has with private insurance — oh, wait) and free seniors from the tyranny of their government insurance plan. Let’s see how that will go over.

Roll back the Affordable Care Act’s expansion of Medicaid and lay the groundwork for further cuts. All those millions of low-income Americans who got coverage through the expansion are suffering terribly, because “Medicaid’s promises are empty, its goals are unmet, and its dollars are wasted.” House Republicans would liberate them from this oppression by taking away their health insurance. The rest of the program would be block-granted so that states could have “flexibility,” which in practice means the flexibility to dump even more patients from their coverage.

Repeal the rest of the ACA. The subsidies that have allowed millions of people to afford insurance? Gone. Protection against denials for preexisting conditions? Not anymore. If you were expecting this to be accompanied by a few comically vague words about “patient-centered reforms” with which the ACA would be replaced while 16 million people are wondering what to do about the coverage they lost, then you’ve been paying attention.

Cut regulations on Wall Street. They’ve been having a real hard time over there, and they could use a helping hand.

Cut environmental regulations. Let’s face it, if the environment is ever going to learn to take care of itself, it needs a little tough love.

Cut Pell grants, which they describe as “targeting Pell Grants to students who need the most assistance.”

Block-grant food stamps, or turn them into a “State Flexibility Fund.” There’s that word again.

Most of these ideas are presented without any actual dollar figures attached to them, but there is “a magic asterisk” in a table located in an appendix, as Max Ehrenfreund points out. This is more than a trillion dollars of savings they claim they’ll get from “Other Mandatory” spending. Ehrenfreund explains:

Other than health care and Social Security, mandatory spending includes a range of programs such as food stamps, disability payments for veterans, the earned income tax credit, and Pell grants for college students. The budget document did not specify which would be cut. Even presuming very large cuts to these programs, though, it was still unclear how lawmakers expected to come up with $1.1 trillion, said Bob Greenstein, president of the Center on Budget and Policy Priorities.

By comparison, the Republican majority in the House voted in favor of reducing the budget for food stamps in 2013. The controversial measure passed only narrowly, with every Democrat and a few Republicans opposed. Many worried the cut was too severe, but it totaled $40 billion, just a sliver of the savings claimed in this week’s proposal.

At this stage, it isn’t so terrible for their proposals to lack specificity; this part of the budget process is meant to sketch a broad outline, while later legislation will set all the particulars. But let’s give the House Republicans credit. They aren’t shying away from talking about voucherizing Medicare (as their Senate colleagues did), and the rest of the document lays out a virtual war on the poor and middle class. They may toss the word “opportunity” in here and there, but the document is a bracing statement of Republican ideology.

Which is as it should be. Sure, the White House is going to criticize it, because the Democrats’ priorities are very different. Now we can have a debate. Should we turn Medicare into a voucher program? Should we toss millions of people off Medicaid and take away the subsidies that allow millions more to afford insurance? Should we cut food stamps and education grants? What are the alternatives? Those are the questions that debate should address, and then the two sides will have to arrive at a budget that incorporates the answers.

 

By: Paul Waldman, Senior Writer, The American Prospect; The Plum Line Blog, The Washington Post, March 18, 2015

March 19, 2015 Posted by | Federal Budget, Poor and Low Income, Republicans | , , , , , , , , | Leave a comment

“The Impossible Dream”: Conservative Scolds Have A Vision, But They Don’t Have A Plan

The New York Times‘ two conservative opinion columnists — David Brooks and Ross Douthat — aren’t always in sync. But they certainly agree about the problems afflicting poor and working-class Americans.

Each has written a column in the past week commenting on Robert Putnam’s new book (Our Kids: The American Dream in Crisis) about the growing quality-of-life gap between college-educated and high-school educated Americans. Brooks does a nice job of summarizing some of Putnam’s more alarming statistics:

Roughly 10 percent of the children born to college grads grow up in single-parent households. Nearly 70 percent of children born to high school grads do. … High-school-educated parents dine with their children less than college-educated parents, read to them less, talk to them less, take them to church less, encourage them less and spend less time engaging in developmental activity. [The New York Times]

These and related trends are indeed troubling, and it’s good that Brooks and Douthat are highlighting them, are troubled by them, and want Republican politicians to address them. If GOP candidates for high office spent half as much time focusing on such problems as they do promoting tax cuts for the rich, we’d all be better off.

Yet Republican lawmakers don’t slight those issues simply because they’d rather ingratiate themselves to wealthy donors. They also skirt them because the way that conservative policy intellectuals think about class convinces candidates for high office that there’s nothing that can be done politically to address the problem.

As far as Brooks and Douthat are concerned, the primary driver of bad outcomes among the poor and working class is culture, not economics. Yes, life is economically harder for people lacking college degrees than for those who have them, but life was hard — and in many cases much harder — for everyone, and certainly for the poor, in the past. And yet families formed and stayed together at much higher rates than they do today. Here is Douthat’s pithy statement of the conservative view: “In a substantially poorer American past with a much thinner safety net, lower-income Americans found a way to cultivate monogamy, fidelity, sobriety, and thrift to an extent that they have not in our richer, higher-spending present.”

When liberals read claims like this, they freak out. That’s in part because they believe that economics is a much more important variable than culture in explaining the social pathologies of the lower classes.

I’m inclined to give the conservatives the benefit of the doubt on this. Culture does matter. The poor and even middle classes did struggle much more in the past, in purely economic terms, than they do today. And yet they did form families and keep them together at much higher rates.

But what policies follow from this? That’s where I fear Brooks and Douthat go off the rails.

Brooks is a little more strident about it, and Douthat a bit more circumspect, but their advice is roughly the same: We need to combat the libertarian drift of American culture since the 1960s by taking a stand against “relativism,” “nonjudgmentalism,” and “permissiveness.” That’s because, while the upper classes may be doing fine in the easy-going, live-and-let-live culture bequeathed to us by the counterculture and sexual revolution, the lower classes clearly aren’t. What they need is more public shaming and scolding of irresponsible behavior.

What would this look like, practically speaking? This is the sum total of what Brooks recommends: “Reintroducing norms” has three steps. First, an unnamed someone — a newspaper columnist, perhaps? — needs to revive a “moral vocabulary.” Then we need to practice “holding people responsible.” (How we aren’t told.) Finally, because elites aren’t exactly beacons of virtue these days either, we need to hold “everyone responsible.”

That’s it.

Douthat’s proposals, contained in a single sentence, focus exclusively on the moral failings of the upper class “for failing to take moral responsibility (in the schools it runs, the mass entertainments it produces, the social agenda it favors) for the effects of permissiveness on the less-savvy, the less protected, the kids who don’t have helicopter parents turning off the television or firewalling the porn.”

All of this might add up to a plausible strategy for changing pathological behavior if it were wedded to concrete policies or a practical plan of action. But as it is, it’s just a micro-sermon vaguely advocating a bit of paternalism with a dash of noblesse oblige.

(I realize that Douthat has championed specific family-friendly policies in the past, but I don’t see how tweaking the child tax credit would meaningfully effect the kind of complex social pathologies he highlights in his recent column. A few extra dollars a month isn’t going to make it possible for a single mom to become a helicopter parent, let alone make it likely that a media executive will produce more wholesome entertainment.)

Back in the 1970s, founding neoconservative Irving Kristol proposed a more aggressive and explicitly political response to the post-’60s rise in permissiveness: government censorship of pornography and other forms of vulgarity. Nothing like this got enacted, of course, and it would be even less likely to catch on today. (A government-run firewall against porn, anyone?) But at least it was a policy proposal that, if it became law, might have contributed in a modest way to a change in mores.

By contrast, what Brooks and Douthat are advocating is guaranteed to have no such effect, because it can’t even be described as a policy proposal. That makes their writing on the subject an outgrowth of the libertarian drift of American culture rather than a strategy for combating it.

Brooks and Douthat know where they are and where they want to go, but they have no politically actionable ideas for how to get from A to B.

What do the conservative scolds want? The impossible.

 

By: Damon Linker, The Week, March 17, 2015

March 18, 2015 Posted by | Conservatives, Education, Poor and Low Income | , , , , , , , | Leave a comment

“Mitt Flips On The Very Poor”: Is Romney The Guy Republicans Want Talking About Poverty?

Nearly three years after he famously said he was “not concerned about the very poor,” former presidential nominee Mitt Romney told Republicans in a speech Friday night the party must focus on helping “lift people out of poverty.”

Welcome to Mitt 3.0: The Mitt who cares.

His comments on the very poor—not to mention the 47 percent—may have played a major role in his 2012 loss, but don’t tell that to Romney. The issue is now among the hottest debates in politics—and he seems determined to be part of that conversation.

Of the three topics the Romney stressed in his brief address to the Republican National Committee’s winter meeting—during which he also confirmed he was thinking about a third campaign for president—two had to do with the less fortunate.

“First, we have to make the world safer,” Romney said. “Second, we have to make sure and provide opportunity for all Americans regardless of the neighborhood they live in. And finally, we have to lift people out of poverty. If we communicate those three things effectively, the American people are going to be with us—be with our nominee and with our candidates across the country.”

But why the change of tone?

Over the past three years, the issue has changed in ways that favor a more progressive approach. The poverty rate has actually gone down since Mitt 2.0—the economy fixer—lost the race in 2012.

According to U.S. Census Bureau data, the official poverty rate went from 15 percent in 2012 to 14.5 percent in 2013. The last time the poverty rate dipped was in 2006. That’s not to say things have gotten markedly better, the number of people in poverty—45.3 million—has remained statistically the same.

This problem is hardly a new issue. The poverty rate was on the rise in 2007, when Romney first ran for president as Mitt 1.0—the Conservative. But even though it spiked from 12.5 percent in 2007 to 13.2 percent in 2008, only then-Sen. John Edwards (D-N.C.) chose to make the issue a centerpiece of his campaign.

But one thing that has changed is public opinion on the issue. Recent polling shows a more compassionate country when it comes to the poor. A June 2014 NBC/Wall Street Journal poll showed fewer people blamed the poor for their financial situation. When asked “which is the bigger cause of poverty today?”, 46 percent of those polled attributed poverty to “circumstances beyond people’s control” as opposed to 44 percent who blamed “people not doing enough.” In 1995, 60 percent blamed “people not doing enough” for their poverty, while 30 percent blamed “circumstances beyond people’s control.”

Back in 2012, it wasn’t as if the Romney campaign completely ignored the poor—poverty was a key issue for his then-running mate Rep. Paul Ryan (R-Wis.). Romney, himself, routinely talked of the rising number of people on food stamps and other government programs as evidence President Obama’s economic policies weren’t working.

But it was what he said behind closed-doors that caused any poverty message he tried to ring hollow. His campaign was never able to shake his comments about the 47 percent of Americans who don’t pay income tax made during a Florida fundraiser.

“There are 47 percent of the people who will vote for the president no matter what. All right, there are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them,” Romney told a group of donors during a closed door meeting. “These are people who pay no income tax. … My job is not to worry about those people. I’ll never convince them they should take personal responsibility and care for their lives.”

When a recording of his remarks leaked, it became a public relations disaster for Romney, solidifying the image of him as an out of touch millionaire in the minds of voters. Even after he lost the 2012 race, Romney doubled down during a call with donors, blaming the Obama administration for giving special interest groups—like African Americans, Hispanics and young people—“gifts” to get their vote, according to the New York Times.

“In each case, they were very generous in what they gave to those groups,” Romney said, according to the Times.

He blamed the so-called gifts for overshadowing his campaign about “big issues for the whole country: military strategy, foreign policy, a strong economy, creating jobs and so forth.”

With wages stuck in neutral for many, poverty and income inequality will likely be a major issue of the 2016 campaign. But Republicans have to think—is Mitt the guy they want talking about it?

 

By: Jackie Kucinich, The Daily Beast, January 19, 2015

January 20, 2015 Posted by | Mitt Romney, Poor and Low Income, Poverty | , , , , , | Leave a comment

“Pain For The Afflicted, Benefits For The Rich”: The Republican Party’s Top Priority Is To Raise Taxes On The Poor. Literally.

Following their convincing victory in the 2014 elections, everyone is wondering what Republicans will do with their new majority in the Senate and House. Well, their policy agenda is becoming clear. It will be unrestrained class warfare against the poor.

This priority was made apparent over the last week during the negotiation of a colossal tax cut package. Senate Democrats and Republicans had been doing some low-key negotiations to renew a slew of tax cuts for corporations and lower- and middle-income Americans, according to reporting from Brian Faler and Rachel Bade at Politico.

Then President Obama announced his executive action on immigration. Enraged Republicans promptly took vengeance on all the goodies for the working poor (as well as for clean energy), cutting them out of the deal and proposing a raft of permanent tax cuts for corporations alone worth $440 billion over 10 years. Cowed Democrats, led by Sen. Harry Reid (D-Nev.), were about ready to go along, prompting a decidedly justified outcry from liberals. Obama then threatened a veto, and the negotiations broke down entirely.

A few takeaways from this. First, it’s yet another reminder that Republicans don’t care about the national debt. Conservative carping about the debt is 100 percent of the time a rhetorical cudgel deployed with utter cynicism against programs they dislike for other reasons. When the topic is food stamps or unemployment insurance, they demand offsets to pay for them. (Because “we’re broke,” as Speaker John Boehner (R-Ohio) put it in a similar context.) But when it comes to dropping planeloads of money on corporations and rich people, Republicans will casually blow a half-trillion hole in the 10-year budget without blinking.

We can safely assume that should Republicans win in 2016, they’ll take all the reduction in the budget deficit accomplished over the Obama years (at great cost and for no benefit, but that’s another story) and do the same thing that George W. Bush did: hand it immediately to the rich.

That’s not all, though. Unlike Bush, who gave his eye-wateringly regressive tax cuts a patina of democratic legitimacy by cutting the non-rich in on a small fraction of the spoils, Republicans are now firmly committed to the idea that poor people don’t pay enough in taxes. The Earned Income Tax Credit was originally a conservative alternative to the welfare state, but increasingly only Democrats support it. Republicans are convinced that the EITC is riddled with fraud, and that voting for it means giving welfare to unauthorized immigrants. (In reality, the EITC results in quite a lot of technically improper payments, but mostly as a result of unnecessary complexity.)

Massive transfers of money to the rich are one half of the Republican economic policy agenda; massive transfers of money away from poor are the other half. And the cuts would be cruel indeed:

For example, a single mother with two children working full time in a nursing home for the minimum wage and earning $14,500 would lose her entire [Child Tax Credit] of $1,725 if the CTC provision expires. [CBPP]

Apparently, cutting the income of a poor working single mother by 12 percent is good and proper conservative policymaking in 2014. Because immigration.

Finally, we see that Republicans are still incapable of the basics of political governance. They can’t maintain any sort of agenda outside of being against what Obama is for. Once the president drives them into a frenzy — which is to say, anytime he does anything at all — any negotiations on deck will be blown up as punishment. These days, divided government means constant high-stakes conflict, as everything, including tax credits for working moms, is weaponized in a naked struggle for power.

But should Republicans ever get the run of things, we now have a very good idea of what’s in store: pain for the afflicted, and benefits for the comfortable.

 

By: Ryan Cooper, The Week, December 3, 2014

December 4, 2014 Posted by | Poor and Low Income, Republicans, Tax Cuts | , , , , , , , | Leave a comment

“Inequality Starts In The Crib”: The United States Is Not A Meritocracy

The entire conservative ideological program on economics depends on cosmic justice: the idea that those who develop talent and work hard will succeed as they deserve, while those who are lazy and without skills will fail as they ought. That meritocratic concept is the justification for slashing all forms of assistance to the poor and the middle class from food stamps to healthcare. Further, if the rich got there by just deserts, then they should get even more money to keep being so productive for everyone else.

But if it turns out that there is no meritocracy–if the rich get there through privilege and luck rather than industry and talent–then the entire rest of the conservative agenda morally falls apart.

It just so happens that a new study shows that the United States does not, in fact, have a meritocracy:

America is the land of opportunity, just for some more than others. That’s because, in large part, inequality starts in the crib. Rich parents can afford to spend more time and money on their kids, and that gap has only grown the past few decades. Indeed, economists Greg Duncan and Richard Murnane calculate that, between 1972 and 2006, high-income parents increased their spending on “enrichment activities” for their children by 151 percent in inflation-adjusted terms, compared to 57 percent for low-income parents….

Even poor kids who do everything right don’t do much better than rich kids who do everything wrong. Advantages and disadvantages, in other words, tend to perpetuate themselves. You can see that in the above chart, based on a new paper from Richard Reeves and Isabel Sawhill, presented at the Federal Reserve Bank of Boston’s annual conference, which is underway.

Specifically, rich high school dropouts remain in the top about as much as poor college grads stay stuck in the bottom — 14 versus 16 percent, respectively. Not only that, but these low-income strivers are just as likely to end up in the bottom as these wealthy ne’er-do-wells. Some meritocracy.

What’s going on? Well, it’s all about glass floors and glass ceilings. Rich kids who can go work for the family business — and, in Canada at least, 70 percent of the sons of the top 1 percent do just that — or inherit the family estate don’t need a high school diploma to get ahead. It’s an extreme example of what economists call “opportunity hoarding.” That includes everything from legacy college admissions to unpaid internships that let affluent parents rig the game a little more in their children’s favor.

But even if they didn’t, low-income kids would still have a hard time getting ahead. That’s, in part, because they’re targets for diploma mills that load them up with debt, but not a lot of prospects. And even if they do get a good degree, at least when it comes to black families, they’re more likely to still live in impoverished neighborhoods that keep them disconnected from opportunities.

Everything about the conservative economic agenda is wrong not only on the merits (supply-side economics is a proven logistical failure, for instance), but from its very philosophical underpinnings.

There is no meritocracy. The rich do not get ahead by their industry and talent, but by luck and connections. It’s more about who you know, than what you know. Which means that anyone defending the right of the rich to take even more money is exalting a system as indefensible as the divine right of kings.

 

By: David Atkins, Political Animal, The Washington Monthly, October 20, 2014

October 23, 2014 Posted by | Economic Inequality, Middle Class, Poor and Low Income | , , , , , | Leave a comment