“Greece’s Economy Is A Lesson For Republicans In The U.S.”: The Toxic Combination Of Austerity With Hard Money
Greece is a faraway country with an economy roughly the size of greater Miami, so America has very little direct stake in its ongoing disaster. To the extent that Greece matters to us, it’s mainly about geopolitics: By poisoning relations among Europe’s democracies, the Greek crisis risks depriving the United States of crucial allies.
But Greece has nonetheless played an outsized role in U.S. political debate, as a symbol of the terrible things that will supposedly happen — any day now — unless we stop helping the less fortunate and printing money to fight unemployment. And Greece does indeed offer important lessons to the rest of us. But they’re not the lessons you think, and the people most likely to deliver a Greek-style economic disaster here in America are the very people who love to use Greece as a boogeyman.
To understand the real lessons of Greece, you need to be aware of two crucial points.
The first is that the “We’re Greece!” crowd has a truly remarkable track record when it comes to economic forecasting: They’ve been wrong about everything, year after year, but refuse to learn from their mistakes. The people now saying that Greece offers an object lesson in the dangers of government debt, and that America is headed down the same road, are the same people who predicted soaring interest rates and runaway inflation in 2010; then, when it didn’t happen, they predicted soaring rates and runaway inflation in 2011; then, well, you get the picture.
The second is that the story you’ve heard about Greece — that it borrowed too much, and its excessive debt led to the current crisis — is seriously incomplete. Greece did indeed run up too much debt (with a lot of help from irresponsible lenders). But its debt, while high, wasn’t that high by historical standards. What turned Greek debt troubles into catastrophe was Greece’s inability, thanks to the euro, to do what countries with large debts usually do: impose fiscal austerity, yes, but offset it with easy money.
Consider Greece’s situation at the end of 2009, when its debt crisis burst into the open. At that point Greek government debt was near 130 percent of gross domestic product, which is definitely a big number. But it’s by no means unprecedented. As it happens, Greece’s debt ratio in 2009 was about the same as America’s in 1946, just after the war. And Britain’s debt ratio in 1946 was twice as high.
Today, however, Greek debt is over 170 percent of G.D.P. and still rising. Is that because Greece just kept on borrowing? Actually, no — Greek debt is up only 6 percent since 2009, although that’s partly because it received some debt relief in 2012. The main point, however, is that the ratio of debt to G.D.P. is up because G.D.P. is down by more than 20 percent. And why is GDP down? Largely because of the austerity measures Greece’s creditors forced it to impose.
Does this mean that austerity is always self-defeating? No, there are cases — for example, Canada in the 1990s — of countries that slashed their debt while maintaining growth and reducing unemployment. But if you look at how they managed this, it involved combining fiscal austerity with easy money: Canada in the ’90s drastically reduced interest rates, encouraging private spending, while allowing its currency to depreciate, encouraging exports.
Greece, unfortunately, no longer had its own currency when it was forced into drastic fiscal retrenchment. The result was an economic implosion that ended up making the debt problem even worse. Greece’s formula for disaster, in other words, didn’t just involve austerity; it involved the toxic combination of austerity with hard money.
So who wants to impose that kind of toxic policy mix on America? The answer is, most of the Republican Party.
On one side, just about everyone in the G.O.P. demands that we reduce government spending, especially aid to lower-income families. (They also, of course, want to reduce taxes on the rich — but that wouldn’t do much to boost demand for U.S. products.)
On the other side, leading Republicans like Representative Paul Ryan incessantly attack the Federal Reserve for its efforts to boost the economy, delivering solemn lectures on the evils of “debasing” the dollar — when the main difference between the effects of austerity in Canada and in Greece was precisely that Canada could “debase” its currency, while Greece couldn’t. Oh, and many Republicans hanker for a return to the gold standard, which would effectively put us into a euro-like straitjacket.
The point is that if you really worry that the U.S. might turn into Greece, you should focus your concern on America’s right. Because if the right gets its way on economic policy — slashing spending while blocking any offsetting monetary easing — it will, in effect, bring the policies behind the Greek disaster to America.
By: Paul Krugman, Op-Ed Columnist, The New York Times, July 10, 2015
“The New Willie Horton?”: This Particular Story Is A Microcosm Of The Republican Challenge On Immigration
Is Juan Francisco Lopez-Sanchez the new Willie Horton?
There are some people who would obviously like him to be. The story, which is about an undocumented immigrant who allegedly murdered a young woman in San Francisco named Kathryn Steinle after having been released from jail, has gone national. And it’s working its way into the presidential campaign. The way the candidates deal with it (or not) will tell us a lot about the state of immigration politics today.
It’s important to understand that there’s no consensus even on the right about how much attention to give to Lopez-Sanchez’s case. Most of the Republican candidates are treading carefully so far. While they oppose the “sanctuary city” policies that meant that Lopez-Sanchez wasn’t turned over to immigration authorities when he had been arrested for lesser crimes, they haven’t yet tried to use this case as a bludgeon to attack Democrats. (The unsurprising exception to this is Donald Trump; meanwhile, for the record, many Democrats have said that a sanctuary city policy should still have allowed someone like Lopez-Sanchez to be turned over to Immigration and Customs Enforcement.)
Yet at the same time, conservative talk radio and Fox News are practically vibrating with delight over this story. When I checked in to the network’s web site this morning, it was the subject not only of the main screaming headline, but five other written stories and four videos, with more coming all the time.
What does this one case tell us about crime in America and our immigration policies? The real answer is not much, because one case is always just one case. According to the latest FBI crime statistics, around 38 Americans are murdered each and every day; every one is a tragedy. We know that as a group, immigrants are actually much less likely to commit crimes than native-born Americans. And though it illustrates an extreme negative consequence that can come from a sanctuary city policy, police in cities with sanctuary policies often argue that they help fight crime by allowing residents of immigrant communities to work with law enforcement without the fear that they’ll be turned over to immigration authorities.
Nevertheless, we’re always looking for individual stories through which we can understand larger issues, and those stories can be used for good or ill. For instance, the case of Ryan White, an Indiana teenager who contracted HIV in 1984, taught the country that AIDS wasn’t just a disease of people who (at the time) were on the fringes of society; after his death in 1990, Congress passed a bill expanding funding for AIDS research and treatment in his name. Then there are stories like Horton’s, which was supposedly about criminal justice policies but was actually just a way for George H.W. Bush to stir up racist fears among white voters in the 1988 election.
If Republican candidates are treading more carefully with regard to this story, it isn’t just because the two cases are different — it’s because there’s serious political danger in trying to make Lopez-Sanchez a reason why people should vote against Democrats. Don’t forget that Bush’s use of Willie Horton worked. Laden with the theme of dangerous and hyper-sexualized black men terrorizing white women while their emasculated husbands looked on helplessly, it resonated with white voters and didn’t produce any noticeable backlash, at least not enough to overcome the benefit Bush got from repeating the story.
But if someone like Scott Walker or Jeb Bush tried to make Lopez-Sanchez the new Horton — a symbol of fear meant to get whites to pull the lever for the GOP — he would undermine all the party’s efforts to convince Hispanic voters that whatever the party’s history on immigration reform, it isn’t blatantly hostile to them. As Michael Gerson advised yesterday: “As the old Southern strategy fades, it would be a terrible mistake to replace it with a different form of fear and exclusion.”
So we’re left with a situation where most of the candidates will criticize sanctuary city policies and make a case for tougher border enforcement, but they’ll be doing it within a context created by their side’s media, the media the primary voters they’re trying to win over are watching and listening to every day. And the Lopez-Sanchez story is exactly the kind of tale that the conservative media feast on: personal, vivid, tragic, just waiting to have all the outrage and anger they can muster poured into it. While the candidates say, “Yes, this is terrible,” behind them will be the media figures Republican voters trust, screaming at the top of their lungs that everyone should be enraged.
In that way, this particular story is a microcosm of the Republican challenge on immigration. Caught between a base eagerly eating up the red meat conservative media are feeding them and a general electorate they can’t afford to alienate, they still haven’t quite figured out how to chart a path that avoids those dangers and gets them to the White House.
By: Paul Waldman, Contributing Writer, The American Prospect; Contributor, The Plum Line Blog, The Washington Post, July 8, 2015
“Potential Usefulness As A New Rhetorical Framework”: The Republican Party Is Still Trying To Decide If Minorities Matter
The Republican party has had well-documented difficulty making inroads with minority voters since the 2012 election. It’s probably more accurate to say that since the 2012 election Republicans have been engaged in a quiet and unresolved debate amongst themselves over which of the following three strategic courses to pursue:
1) Making genuine, substantive concessions to minority voters.
2) Making symbolic and rhetorical concessions to minority voters, without making significant changes to the GOP’s substantive agenda.
3) Making no concessions to minority voters whatsoever, in the hope of increasing the GOP’s already sizeable margins among white voters.
Two developments in the past month—the mass killing of black worshippers by a white supremacist at Emanuel AME Church in Charleston, SC, and the launch of Donald Trump’s presidential campaign—have thrown into stark relief how badly option one lost out to options two and three. The ongoing Republican presidential primary has become a contest to determine which of the latter two approaches the party will adopt in the general election next year.
The Emanuel AME killings set off a furious backlash to the southern right’s glorification of the Confederacy. And after a brief but conspicuous stumble, Republican presidential candidates neared a consensus that the party should no longer support conspicuous celebrations of it. Republicans began lowering Confederate battle flags from government buildings, and, in South Carolina, have begun the legislative process required to place the Confederate flag flying on the state’s capitol grounds into a museum.
This isn’t a meaningless concession. A CNN/ORC poll taken in late June found that 66 percent of whites, 77 percent of Republicans, and a majority of the country at large view the flag as a symbol of Southern pride more than a symbol of racism—a view that, while wrongheaded, suggests Republicans were willing to commit an affront to their own voting base in order to demonstrate that the Charleston killings had moved them in some meaningful way.
After initially whiffing on the Confederate flag question, former Texas Governor Rick Perry dedicated a major presidential campaign speech to acknowledging that the Republican party’s minority rut is one of its own making:
Blacks know that Republican Barry Goldwater in 1964 ran against Lyndon Johnson, who was a champion for Civil Rights. They know that Barry Goldwater opposed the Civil Rights Act of 1964. He felt parts of it were unconstitutional. States supporting segregation in the south, they cited states’ rights as a justification for keeping blacks from the voting booth and the dinner table.
As you know, I am an ardent believer in the 10th Amendment, which was ratified in 1791, as part of our Bill of Rights. The 10th Amendment says that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved for the states respectively, or the individual. I know that state governments are more accountable to you than the federal government.
But I’m also an ardent believer in the 14th Amendment, which says that no state shall deny any person in its jurisdiction the equal protection of the laws. There has been, and there will continue to be an important and a legitimate role for the federal government in enforcing Civil Rights.
Too often, we Republicans, me included, have emphasized our message on the 10th Amendment but not our message on the 14th. An Amendment, it bears reminding, that was one of the great contributions of Republican party to American life, second only to the abolition of slavery. For too long, we Republicans have been content to lose the black vote, because we found we didn’t need it to win. But, when we gave up trying to win the support of African-Americans, we lost our moral legitimacy as the party of Lincoln, as the party of equal opportunity for all.
It’s exceedingly, depressingly rare for conservatives to admit that African-American support for Democrats is historically well grounded. Held up against that low bar, Perry’s clarity here is refreshing. But the meaning of this passage lies less in his concession to historical reality than in his stipulation that “state governments are more accountable…than the federal government” and his promiscuous use of the term “message.” Perry’s interest in the 14th Amendment isn’t a harbinger of his support for, say, same-sex marriage. It is mostly limited to its potential usefulness as a new rhetorical framework in which to squeeze existing conservative policy commitments that have little or nothing to do with equal protection or due process.
If Perry represents the Republican faction committed to improving the Republican party’s “message” to minority voters, then Trump represents the faction that believes conservatives should run on the presumption that Republicans still don’t need minority votes to win.
Several Republicans, including Perry, joined the immense backlash to Trump’s suggestion that undocumented immigrants are disproportionately rapists and drug criminals. But the right didn’t react in lockstep. Among presidential candidates, Ted Cruz, Rick Santorum, and Ben Carson have all spoken up for Trump, as have conservative intellectuals like Rich Lowry, who argued that “Trump’s rant on immigration is closer to reality than the gauzy cliches of immigration romantics.”
The view that there are enough aggrieved white voters in the country to elect a GOP president no longer dominates Republican strategic thought as it once did, and it will probably shrink further over time, as changing demographics make it less and less tenable politically.
But in this election, with this primary field, it could win the day one more time. What it lacks in broad appeal it makes up for in its ability to lend Republican policy arguments internal coherence. The range of issues that both affect minorities and demand substantive concessions from Republicans is growing, and that will make Perry-like efforts to smooth the sharp edges of conservative policy with gentler rhetoric more tortured as time goes on. In the long run, the only real option is for the GOP to change party dogma on issues like voting rights or immigration or social spending.
But for now, the notion propounded by Trump and Cruz and others, is that the Republican party doesn’t need to go to any trouble at all.
By: Brian Beutler, The New Republic, July 8, 2015
“The Southern Strategy Doesn’t Work Anymore”: Rick Perry Wants To Reach Out To Black People. He’ll Have To Do A Lot Better
Yesterday, Rick Perry went to the National Press Club in Washington to deliver a speech that may have seemed unusual, in that it was characterized as an effort to reach out to African Americans, but actually contained much less than meets the eye. Perry presented traditional Republican priorities — tax cuts, regulatory rollback, slashing safety net programs — as a gift the GOP wants to bestow on African Americans and acknowledged that his party hasn’t exactly been welcoming to them. But if this is “reaching out” beyond the whites who form almost the entirety of the GOP’s voters, it isn’t going to accomplish much. Here’s an excerpt:
There has been, and there will continue to be an important and a legitimate role for the federal government in enforcing Civil Rights. Too often, we Republicans, me included, have emphasized our message on the 10th Amendment but not our message on the 14th. An Amendment, it bears reminding, that was one of the great contributions of Republican party to American life, second only to the abolition of slavery.
For too long, we Republicans have been content to lose the black vote, because we found we didn’t need it to win. But, when we gave up trying to win the support of African-Americans, we lost our moral legitimacy as the party of Lincoln, as the party of equal opportunity for all. It’s time for us, once again, to reclaim our heritage as the only party in our country founded on the principle of freedom for African-Americans.
We know what Democrats will propose in 2016, the same thing, the same things that Democrats have proposed for decades, more government spending on more government programs. And there is a proper and an important role for government assistance in keeping people on their feet. But few Presidents have done more to expand government assistance than President Obama. Today we spend nearly one trillion dollars a year on means tested antipoverty programs. And yet, black poverty remains stagnant.
Let’s be clear about one thing: The GOP didn’t “give up” trying to win the black vote. It spent decades building and maintaining electoral majorities on the encouragement and exploitation of racism. It was a sin of commission, not a sin of omission. And the reason the party is now reevaluating the “Southern strategy” isn’t that it had some kind of moral epiphany, it’s because the strategy doesn’t work anymore.
While we’re on this topic, permit me a digression on this “party of Lincoln” business, which is something Republicans say when they’re trying to convince people they aren’t actually hostile to black people. As Antonin Scalia would say, it’s pure applesauce. Here’s the truth: One hundred fifty years ago, the Republican Party was the liberal party, and the Democratic Party was the conservative party. They reversed those positions over time for a variety of reasons, but the Republicans of today are not Abraham Lincoln’s heirs. Ask yourself this: If he had been around in 1864, which side do you think Rick Perry would have been on? If you took more than half a second to answer, “The Confederacy, of course,” then you’re being way too generous to him, not to mention the overwhelming majority of his fellow Republicans.
All that isn’t to say that it’s impossible for Republicans to turn over a new leaf and truly give African Americans a reason to consider their party. But if they’re going to be at all successful, it will take both a change in policy and a change in attitude.
A change in policy, at least outside of some very specific areas, is extremely unlikely to happen. Perry discussed the issue of incarcerations related to the drug war, and that’s one example where Republicans really are coming together with Democrats to reevaluate the policies of recent decades. They deserve credit for that. But there’s almost nothing else they’re offering, other than to argue that the things they already wanted to do, such as cutting taxes, will be great for black people, too.
Then there’s the argument Perry and others make about safety net programs: that people of color are being enslaved by them, and if we only cut those shackles then they’ll rise up. This argument — that the Republican Party wants to slash the safety net only because it cares so much for the poor — has never persuaded anyone in the past, and it isn’t likely to in the future.
And what about the change in attitude? The most fundamental reason Republicans can’t get the votes of African Americans is that the party communicates to them, again and again and again, that it isn’t just ignoring their needs but is actively hostile to them. When conservative justices gut the Voting Rights Act to the cheers of Republicans, and then states such as Perry’s Texas move immediately to impose voting restrictions that they know will disproportionately affect African Americans, it sends a very clear message.
Perry began his speech with a harrowing story of a lynching in Texas in 1916, which was surely meant to convey to African Americans that he understands the legacy of racism. But it also sends an accompanying message: that he believes racism is about the violent oppression of the past and has nothing to do with the lives African Americans lead today. And that’s another message African Americans hear loud and clear. Every time any issue of race comes up, whether it’s about police mistreatment or discrimination in employment or anything else, the first response of conservatives is always to say, “Oh c’mon, what are you complaining about? Racism is over.”
If Perry really wanted to “reach out” to African Americans and convince them that something has changed, here’s a way he could do it: He could say something about the endless stream of race-baiting that comes from the most prominent conservative media figures. If you’ve listened to Rush Limbaugh or watched Bill O’Reilly, you know that one of the central themes of their programs is that white people are America’s only victimized racial group, while African Americans form a criminal class that deserves to be constantly harassed by the police because they’re a bunch of thugs the rest of us need protection from. Day in and day out, those programs’ white audiences are told that Obama is some kind of Black Panther enacting a campaign of racial vengeance upon them. “All too often I have seen this president divide us by race,” says Perry, when the media figures his party lionizes are constantly telling their audiences to see politics through the lens of their own whiteness and nurture their racial resentments.
And Perry can tell black people that it’s welfare that’s really keeping them down, but because of his party, the first African American president had to literally show his birth certificate to prove he’s a real American. That’s just one of the things it’s going to take an awful lot of reaching out to make them forget.
By: Paul Waldman, Senior Writer, The American Prospect; Contributor, The Plum Line, The Washington Post, July 3, 2015
“A Reality-Show Version Of An Actual Campaign”: Donald Trump; A Farce To Be Reckoned With
Anxiety-ridden GOP masterminds will eventually find a way to solve the Trump Problem. Until they do, however, the Republican Party threatens to become as much of a laughingstock as what David Letterman used to call “that thing on Donald Trump’s head.”
Suddenly, according to recent polls, the iconically coiffed mogul has to be taken . . . how, exactly? Obviously it’s not possible to take Trump seriously, since there’s nothing remotely serious about him or his “campaign,” which is nothing more than a reality-show version of an actual campaign. But if his poll numbers are going to place him in the top tier of Republican candidates, he can’t be ignored.
Let’s call him a farce to be reckoned with.
A CNN poll released Wednesday found that Trump was favored by 12 percent of Republicans and Republican-leaning independents nationally, putting him in second place behind dynastic scion Jeb Bush, who was at 19 percent. Other recent surveys showed Trump trailing only Wisconsin Gov. Scott Walker in Iowa and only Bush in New Hampshire.
Trump reacted to his rising political status with typical self-effacement and modesty, saying that “politicians are all talk and no action and the American public is ready for a leader with a proven track record of success.”
Trump’s track record would look a lot better without the corporate bankruptcies, and many doubt he’s worth anything near the $9 billion he claims. But let’s stipulate that he is a wealthy man who inherited a real estate empire from his father and displayed a talent for both making and losing huge amounts of money.
Let’s also stipulate that while Trump can’t win the nomination, he can be a significant factor in the race — and not, for the Republican Party, in anything resembling a good way.
Already, he has sent a clear message to Latino voters, whom GOP strategists desperately want to attract. Go away, Trump tells them; put as much distance between yourselves and this party as you possibly can.
In his announcement speech, which was really more of an extended improvised riff, Trump gave a description of Mexican immigrants that was both chauvinistic and xenophobic. “When Mexico sends its people, they’re not sending their best,” he said. “They’re bringing drugs. They’re bringing crime. They’re rapists. And some, I assume, are good people.”
Note the magnanimity: Trump, a big man, is willing to take it on faith that some immigrants from Mexico are not rapists. He clearly believes that very many are, however. When pressed on the subject by CNN’s Don Lemon, Trump insisted, “Well, somebody’s doing the raping, Don. I mean somebody’s doing it. Who’s doing the raping? Who’s doing the raping?”
Who, indeed? Trump will have some free time to get to the bottom of this mystery because his slurs led NBCUniversal, which has aired his reality show “The Apprentice,” to sever all ties with him and Univision to announce it will no longer carry his Miss USA and Miss Universe pageants. The Macy’s department store chain decided to no longer carry Trump’s line of menswear, which was interesting news to me because I didn’t know he had a line of menswear. Hard to imagine that the combed-over-mogul look was ever a big seller.
But I digress. The point was how Trump had insulted men and women of Mexican heritage. It’s hard to stay focused when writing about him because there is no thread to grasp. Trump professes to know everything about everything and refuses to acknowledge a shred of evidence to the contrary. “I’m right because I say so” pretty much sums up his political philosophy.
But everyone knows who he is, which is more than can be said for many of the hopefuls buried in the GOP scrum. And nobody knows how to draw attention to himself better than Trump. If by some unimaginable fluke he did become president, does anyone doubt he’d try to put his name in big gold letters on the north portico of the White House?
Viewers will tune in to the Republican debates just to see whom Trump insults next. “The Chinese” will come in for a lambasting, of course. Perhaps he will tell us again what a great relationship he has with “the blacks.” Or maybe he will expound on his solutions for the turmoil in the Middle East, which all seem to involve taking other countries’ oil.
The one thing Trump can accomplish is to bring the Republican campaign down to his level. A party that allows such a travesty deserves to lose.
By: Eugene Robinson, Opinion Writer, The Washington Post, July 2, 2015
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