Recovering The Constitution From Conservatives
Tea Party types and other conservatives talk about how they’d like their country back.
I’d like my Constitution back.
The rise of these self-proclaimed constitutional conservatives is an ominous development that has received too little notice — and too little push-back.
Until now. Under the banner of “Constitutional Progressives,” a coalition of liberal groups has begun making an important, two-part argument: first, that a progressive government agenda is consistent with constitutional values; and second, that the constitutional conservative approach represents a dangerous retrenchment of the government’s role.
This bid to “rebut the constitutional fairy tales being peddled by the Tea Party,” as Douglas Kendall of the Constitutional Accountability Center put it, could not be more timely, with the dizzying rise of Texas Gov. Rick Perry (R).
The constitutional conservative critique, as articulated by Perry, Rep. Michele Bachmann (R-Minn.) and others, goes far beyond the familiar laments about activist judges. It is, at bottom, an argument against the 20th century — specifically against the notion that the Constitution envisions and empowers a muscular federal government able to ensure that its citizens have clean air, healthy food and safe workplaces.
To grasp the radical nature of the constitutional conservative approach, consider the record of every Republican president since the New Deal.
Richard Nixon ran on the pledge of appointing “strict constructionist” judges, but he created the Environmental Protection Agency, telling Congress that “our national government today is not structured to make a coordinated attack on the pollutants which debase the air we breathe, the water we drink and the land that grows our food.” Nixon didn’t doubt — as do the modern constitutional conservatives — that environmental regulation was an appropriate and constitutional role for the federal government.
Likewise, George W. Bush inveighed against judges “legislating from the bench.” Yet he presided over the largest expansion of Medicare — the addition of a prescription drug benefit — in the history of the program and oversaw a sweeping new role for the federal government in assuring quality education by local schools. Bush didn’t question — as do the constitutional conservatives — whether these were permissible activities for the federal government.
The constitutional conservative vision is dramatically different. It sees a hobbled federal government limited to a few basic activities, such as national defense and immigration. The 10th Amendment, reserving to states the powers not granted to the federal government, would be put on steroids. The commerce clause, giving the federal government the authority to regulate commerce among the states, would be drastically diminished.
Certainly, there’s a legitimate debate about the proper role of the federal government and the scope of federal vs. state power. But that is a different argument than the one long thought settled during the New Deal: that the Constitution grants the federal government power to regulate a broad array of activities in the national interest.
The danger posed by the constitutional conservative approach is to attempt to lash together debates about what the federal government should do and what the Constitution allows it to do.
A white paper by the liberal Center for American Progress spells out the potential consequences of the constitutional conservative vision. Programs such as Social Security, Medicare and Medicaid would be deemed to exceed the federal government’s enumerated powers.
The federal government would cease to have any role in education, eliminating funding for public schools and college financial aid, and in combating poverty, ending food stamps and unemployment insurance. Laws on everything from child labor to food safety would be overturned.
None of this is likely to happen, of course, for the simple reason that most Americans don’t want it to. When Perry was pushed during a debate about the implications of his views on the constitutionality of Social Security, for example, he waved off the question as an interesting intellectual exercise.
But the emergence of the constitutional conservative argument has real-world consequences — even without a constitutional conservative in the White House. It shifts the legal debate significantly rightward, energizing and empowering conservative judges and justices. And it changes the nature of the political debate as well by narrowing the turf on which, at least in the view of some lawmakers, the federal government is deemed authorized to operate.
“This is a way to weaponize the Constitution to prevent a real debate about how the government can solve national problems,” Kendall told me.
Strong words, but the constitutional conservative vision is too extreme to continue to ignore it in the hope that it will fade on its own.
By Ruth Marcus, Opinion Writer, The Washington Post, September 18, 2011
Wall Street’s Worst Nightmare: Elizabeth Warren To Run For Senate
Elizabeth Warren, consumer advocate and chief architect of the Consumer Financial Protection Bureau, will announce on Wednesday that she will run for the U.S. Senate seat in Massachusetts currently held by Republican Scott Brown.
Should Warren prevail in defeating the six candidates who have already announced their intention to compete in the Democratic primary, the result may be the greatest economic boon to Massachusetts media outlets since the days of Kennedy money as Wall Street ponies up serious bucks in an effort to defeat their arch-nemeses. Democratic contributors can be expected to respond in kind as bringing the Massachusetts senate seat back into the Democratic column is considered an important key to retaining the Democratic majority in the Senate.
While Warren is not expected to make a formal, public announcement, the Boston Globe reports that a video will go up on Warren’s website tomorrow announcing her intentions and saying, in part—
The pressure on middle class families are worse than ever, but it is the big corporations that get their way in Washington. I want to change that. I will work my heart out to earn the trust of the people of Massachusetts.
If track record counts for anything, you can believe that Elizabeth Warren will do precisely as she says. Because of that track record, the Harvard Law professor, who went to Washington and built a major following by relentlessly attacking the financial institutions for their anti-consumer agenda, will surely have the support of national progressives and Democrats, support she has unquestionably earned.
The possibility of Warren’s election presents GOP senators with a rich dose of irony. Warren was the obvious and most deserving person to serve as the first leader of the CFPB, the consumer protection agency she almost single-handedly created. However, in an effort to protect their Wall Street cronies and financial backers, the Republicans in the Senate made it very clear that her nomination would never be approved.
As the administrator of the CFPB, Warren would have been under the thumb of Congress. As a member of the Senate, it will be a very different story.
Payback can be rough.
By: Rick Ungar, Mother Jones, September 13, 2011
The GOP Magical World Of Voodoo ‘Economists’: Repeal The 20th Century
If you came up with a bumper sticker that pulls together the platform of this year’s crop of Republican presidential candidates, it would have to be:
Repeal the 20th century. Vote GOP.
It’s not just the 21st century they want to turn the clock back on — health-care reform, global warming and the financial regulations passed in the wake of the recent financial crises and accounting scandals.
These folks are actually talking about repealing the Clean Air Act, the Clean Water Act and the Environmental Protection Agency, created in 1970s.
They’re talking about abolishing Medicare and Medicaid, which passed in the 1960s, and Social Security, created in the 1930s.
They reject as thoroughly discredited all of Keynesian economics, including the efficacy of fiscal stimulus, preferring the budget-balancing economic policies that turned the 1929 stock market crash into the Great Depression.
They also reject the efficacy of monetary stimulus to fight recession, and give the strong impression they wouldn’t mind abolishing the Federal Reserve and putting the country back on the gold standard.
They refuse to embrace Darwin’s theory of evolution, which has been widely accepted since the Scopes Trial of the 1920s.
One of them is even talking about repealing the 16th and 17th amendments to the Constitution, allowing for a federal income tax and the direct election of senators — landmarks of the Progressive Era.
What’s next — repeal of quantum physics?
Not every candidate embraces every one of these kooky ideas. But what’s striking is that when Rick Perry stands up and declares that “Keynesian policy and Keynesian theory is now done,” not one candidate is willing to speak up for the most important economic thinker of the 20th century. Or when Michele Bachmann declares that natural selection is just a theory, none of the other candidates is willing to risk the wrath of the religious right and call her on it. Leadership, it ain’t.
I realize economics isn’t a science the way biology and physics are sciences, but it’s close enough to one that there are ideas, principles and insights from experience that economists generally agree upon. Listening to the Republicans talk about the economy and economic policy, however, is like entering into an alternative reality.
Theirs is a magical world in which the gulf oil spill and the Japanese nuclear disaster never happened and there was never a problem with smog, polluted rivers or contaminated hamburger. It is a world where Enron and Worldcom did not collapse and shoddy underwriting by bankers did not bring the financial system to the brink of a meltdown. It is a world where the unemployed can always find a job if they really want one and businesses never, ever ship jobs overseas.
As politicians who are always quick to point out that it is only the private sector that creates economic growth, I found it rather comical to watch the governors at last week’s debate duke it out over who “created” the most jobs while in office. I know it must have just been an oversight, but I couldn’t help noticing that neither Mitt Romney nor Perry thought to exclude the thousands of government jobs included in their calculations — the kinds of jobs they and their fellow Republicans now view as economically illegitimate.
And how wonderfully precise they can be when it comes to job numbers. Romney is way out front when it comes to this kind of false precision. His new economic plan calculates that President Obama would “threaten” 7.3 million jobs with the ozone regulation that, in fact, the president had just canceled. By contrast, Romney claims his own plan will create 11 million jobs in his first term — not 10, not 12, but 11 million.
When you dig into such calculations, however, it turns out many are based on back-of-the-envelope extrapolations from industry data that totally ignore the dynamic quality of economic interactions.
One recent example comes from the cement industry, which now warns that new regulations limiting emissions of sulfur dioxide and nitrogen oxide could close as many as 18 of the 100 cement plants in the United States, resulting in the direct loss of 13,000 jobs.
Then again, where do you think all those customers of the 18 plants will get their cement? Do you think they might get some of it from the other 82 plants, which in turn might have to add a few workers to handle the additional volume? Or that a higher price for cement might induce somebody to build a modern plant to take advantage of the suddenly unmet demand? Or perhaps that higher prices for cement will lead some customers to use another building material produced by an industry that will have to add workers to increase its output? And what about the possibility that the regulation will encourage some innovative company to devise emissions-control equipment that will not only allow some of those plants to remain open but generate a few thousand extra jobs of its own as it exports to plants around the world.
Such possibilities are rarely, if ever, acknowledged in these “job-scare studies.” Also left out are any estimates of the benefits that might accrue in terms of longer, healthier lives. In the Republican alternative universe, it’s all costs, no benefits when it comes to government regulation. As they see it, government regulators wake up every morning with an uncontrollable urge to see how many jobs they can destroy.
If consistency is the hobgoblin of small minds, then these Republican presidential candidates are big thinkers, particularly on fiscal issues.
In the Republican alternative universe, allowing an income tax cut for rich people to expire will “devastate” the U.S. economy, while letting a payroll tax cut for working people to expire would hardly be noticed. Cutting defense spending is economic folly; cutting food stamps for poor children an economic imperative.
My favorite, though, is a proposal, backed by nearly all the candidates along with the U.S. Chamber of Commerce, to allow big corporations to bring home, at a greatly reduced tax rate, the more than $1 trillion in profits they have stashed away in foreign subsidiaries.
“Repatriation,” as it is called, was tried during the “jobless recovery” of the Bush years, with the promise that it would create 500,000 jobs over two years as corporations reinvested the cash in their U.S. operations. According to the most definitive studies of what happened, however, most of the repatriated profits weren’t used to hire workers or invest in new plants and equipment. Instead, they were used to pay down debt or buy back stock.
But fear not. In a new paper prepared for the chamber, Republican economist Douglas Holtz-Eakin argues that just because the money went to creditors and investors doesn’t mean it didn’t create jobs. After all, creditors and shareholders are people, too — people who will turn around and spend most of it, in the process increasing the overall demand for goods and services. As a result, Holtz-Eakin argues, a dollar of repatriated profit would have roughly the same impact on the economy as a dollar under the Obama stimulus plan, or in the case of $1 trillion in repatriated profit, about 3 million new jobs.
It’s a lovely economic argument, and it might even be right. But for Republican presidential candidates, it presents a little problem. You can’t argue, at one moment, that putting $1 trillion of money in the hands of households and business failed to create even a single job, and at the next moment argue that putting an extra $1 trillion in repatriated profit into their hands will magically generate jobs for millions.
It took a while, but even Richard Nixon came around to declaring himself a Keynesian. Maybe there is still hope for Perry and the gang.
Romney’s Stupidest Idea Of The Week
One of the signature policy proposals that Mitt Romney outlined in his economic plan and highlighted in his USA Today op-ed last week is a policy that is as pernicious in practice as it sounds unthreatening. On page 61 of his plan, Romney proposes to cap the rate at which agencies would impose new regulations at zero. This means that if an agency is required by law to issue a new regulation, it must offset the costs, presumably by eliminating some other regulations. Essentially, Romney is proposing to adopt pay-as-you-go budgeting to regulations.
It’s not entirely clear if this rule applies to each agency—would the Food and Drug Administration have to eliminate some food inspection rules if they created some new regulations of food?—or if this is government-wide policy, so if the government creates rules in one area, it would be required to undo rules in another, unrelated area. But either way, this policy would have far-reaching negative consequences. Imagine, for instance, if a cap on regulations was in place after the financial crisis, when lack of regulation of Wall Street led to the cratering of the economy. Under this proposal, in order to regulate Wall Street to ensure that economic devastation couldn’t happen again, the federal government would have to eliminate regulations on food or water or air, or some other protections. Where is the logic of undoing clean air regulations because new consumer protections are needed?
Behind this policy response is a simple animosity towards any rules for businesses that come at the expense of profits. Republicans have been arguing that regulatory uncertainty is hurting job growth because businesses supposedly refuse to make hiring decisions when they don’t know what the rules will be. But if anything were going to feed uncertainty, it would be a rule that haphazardly and randomly picks old rules to eliminate once new rules were created. Companies make decisions about their future assuming those regulations stay in place; eliminating old regulations will simply favor some firms over others.
The bigger point to be made, however, is that regulations are not what are ailing our economy now, nor are they hindering growth. McClatchy recently surveyed small business owners on why they weren’t employing additional people—none offered regulation among the barriers to hiring. (That’s why it’s particularly unfortunate that the president recently fed the Republican obsession with his suspension of the ozone rule, citing “regulatory uncertainty, particularly as our economy continues to recover,” as part of his rationale.) In fact, if anything, greater regulation can be correlated with greater growth: Over the last 50 years, the decades of the highest growth rates for our economy saw the greatest expansion of government and its regulations. Growth rates were highest in the 1960s at 4.55 percent for the decade, when we created Medicare, Medicaid, and the Great Society poverty programs—our greatest expansion of government. And growth rates were the lowest in the last decade, averaging only 1.38 percent. I think it is safe to say George Bush was not a friend of regulation.
But if regulations aren’t the culprit, what is? What’s holding up hiring now is that there is not enough demand in the economy. Even bond traders like Bill Gross acknowledge the need for direct federal help for job creation and growth. To actually create jobs, Republicans should come to the table with the president and pass ideas they have supported in the past, like investment in roads and bridges and hiring teachers who have been laid off. But because Republican ideology will not tolerate federal policies that actually help create jobs, they are reduced to pithy sounding policies on regulations that are just another way of getting rid of protections for consumers in order to help corporations.
As a former policy director on a presidential campaign, I am sympathetic to the desire to try to propose “new” policy ideas that sound good in a speech or a press paper. In the back and forth of a campaign, reporters, campaign press staff, and even the candidates can demand new policies in areas that have been well-trodden and don’t typically make for exciting speeches. But a serious candidate has to put forward serious ideas to solve actual problems. And for a candidate trying to distinguish himself from a Texas governor ready to shoot from the hip, Mitt Romney’s cap on regulation does not meet that test.
By: Neera Tanden, COO, Center for American Progress, Published in The New Republic, September 12, 2011