John Boehner’s Unreality Check On The Deficit
The news out of House Speaker John Boehner’s speech to the New York Economic Club was his demand for “cuts of trillions, not just billions” before the debt ceiling can be raised. Not just broad deficit-reduction targets, the Ohio Republican insisted, but “actual cuts and program reforms.”
That’s alarming enough. It is all but impossible to get this done in the available time. It certainly can’t be accomplished on Boehner’s unbending, no-new-taxes terms. And if the speaker truly believes that it would be “more irresponsible” to raise the debt ceiling without instituting deficit-reduction measures than not to raise it at all, we’re in a heap of trouble.
Even more alarming, because it has consequences beyond the debt-ceiling debate, is the incoherent, impervious-to-facts economic philosophy undergirding Boehner’s remarks.
Reporters naturally tend to ignore this boilerplate. Journalistically, that makes sense. Boehner’s economic comments were nothing particularly new. Indeed, they reflect what has become the mainstream thinking of the Republican Party. But that’s exactly the point. We become so inured to hearing this thinking that we neglect to point out how wrong it is.
My argument with Boehner is not that he believes in a more limited role for government than I do, not that he is more skeptical of government intervention and regulation, and not that he is more worried about the economically stifling implications of tax increases. Those are legitimate ideological differences. American politics is better off for them.
I’m talking about statements that are simply false.
“The recent stimulus spending binge hurt our economy and hampered private-sector job creation in America.”
Reasonable economists can disagree about the effectiveness of the stimulus spending and whether it was worth the drag of the additional debt, but no reasonable economist argues that it hurt the economy in the short term.
The Congressional Budget Office estimates the stimulus added, on average, about one percentage point annually to economic growth and reduced the unemployment rate by half a point between 2009 and 2011. And that’s the low-end estimate. The high-end numbers show the stimulus spending adding more than 2 percentage points annually to economic growth and cutting the unemployment rate by more than 1 percentage point.
The CBO is not alone. Economists Alan Blinder and Mark Zandi estimated in a July 2010 paper that without the stimulus spending, the unemployment rate would be 1.5 percentage points higher.
“The massive borrowing and spending by the Treasury Department crowded out private investment by American businesses of all sizes.”
Crowding out occurs when government spending drives up interest rates and makes borrowing unattractive to the private sector. As economist Joseph Minarik of the Committee for Economic Development explains, “When interest rates are on the floor, you can’t say federal government borrowing is crowding out business investment.” The lackluster investment climate reflects low consumer demand and underutilized capacity. You can’t be crowded out of a room you’re not trying to enter.
“The truth is we will never balance the budget and rid our children of debt unless we cut spending and have real economic growth. And we will never have real economic growth if we raise taxes on those in America who create jobs.”
Never? Under President Clinton, taxes were raised, primarily on the wealthy. During the eight years of his administration, the economy grew by an average of close to 4 percent.
“I ran for Congress in 1990, the year our nation’s leaders struck a so-called bargain that raised taxes as part of a bipartisan plan to balance the budget. The result of that so-called bargain was the recession of the early 1990s. It wasn’t until the economy picked back up toward the end of that decade that we achieved a balanced budget.”
Boehner blames the budget deal for tanking the economy, but the recession actually started in July 1990, two months before the agreement was reached. And that revived economy? It came despite the supposed dead weight of the Clinton tax increase.
“A tax hike would wreak havoc not only on our economy’s ability to create private-sector jobs, but also on our ability to tackle the national debt.”
During the early 1980s, taxes were cut and public debt ballooned, from 26 percent of GDP in 1980 to 40 percent by 1986. In 1993, taxes were increased (and spending cut); debt as a share of the economy fell, from 49 percent to 33 percent. In 2001 and 2003, taxes were cut. By the time President Obama took office, debt had climbed to 40 percent of GDP.
Listening to Boehner, I began to think the country suffers from two deficits: the gap between spending and revenue, and the one between reality and ideology. The first cannot be solved unless we find some way of at least narrowing the second.
By: Ruth Marcus, Opinion Writer, The Washington Post, May 10, 2011
Liberal Media Bias?: The Sunday Shows Can’t Help Themselves
I promise not to do this every Sunday morning — it only seems like I will — but take a look at today’s guest lists for the five major Sunday shows.
* NBC’s “Meet the Press”: Disgraced former House Speaker Newt Gingrich (R-Ga.)
* CBS’s “Face the Nation”: House Speaker John Boehner (R-Ohio)
* ABC’s “This Week”: South Carolina Gov. Nikki Haley (R)
* Fox News’ “Fox News Sunday”: Rep. Ron Paul (R-Texas), Senate Majority Whip Dick Durbin (D-Ill.), Senate Minority Whip Jon Kyl (R-Ariz.) [Update: Mike Huckabee (R) is a late edition to the line-up]
* CNN’s “State of the Union”: Senate Minority Leader Mitch McConnell (R-Ky.), House Budget Committee Chairman Paul Ryan (R-Wis.), former Bush administration officials Dennis Blair and John Negroponte
For those keeping score at home, that’s two Republican presidential candidates, two House Republican leaders, two Senate Republican leaders, one Republican governor, one former Republican governor, two Bush administration officials, and one Democrat.
Liberal media, indeed.
In fairness, it’s worth noting that after these headliner guests, the shows will feature panel discussions, and some of the voices will be center-left. Paul Krugman will be on ABC, E.J. Dionne Jr will be on NBC, and Joe Lockhardt will be on CNN.
But (a) this doesn’t make up for the seven-to-one imbalance among officeholders and candidates; and (b) each of the center-left guests will be featured alongside a conservative, presumably to offer the kind of “balance” viewers won’t get with the headline guests.
Rachel Maddow noted the other day, “The Sunday shows are supposedly the apex of political debate — the pulsing, throbbing heart of what’s going on in American politics.”
Right, and week in and week out, this debate is dominated by voices from only one party.
A couple of years ago, Josh Marshall talked about how the Washington establishment is simply “wired” for Republicans. It’s GOP ideas that get attention; it’s GOP talking points that get internalized; it’s GOP voices that get aired.
The Sunday show guest lists help drive the point home nicely.
By: Steve Benen, Contributing Writer, Washington Monthly, May 15, 2011
Rigging The Game Is Easier Than Earning Votes
It’s not unusual to find a fair amount of 2012 optimism in Democratic circles. The economy is improving; Republican overreach is causing voters to recoil; and President Obama will be on the top of the ballot again, giving Dems a boost they lacked in 2010.
But for all that cautious confidence, it’s worth noting that Dems can’t win if their supporters can’t vote. And with that in mind, the Democratic Legislative Campaign Committee reported this week on Republican efforts in state legislatures to rewrite voting laws “to make exercising one’s right to cast a ballot more difficult.”
After examining the plethora of bills introduced in statehouses this year that, among other things, would reduce poll hours and require voters to show photo ID, it seems clear that Republicans are trying to make it harder for certain groups to vote. The Advancement Project, an advocacy group of civil rights attorneys, called the push “the largest legislative effort to scale back voting rights in a century.”
According to the National Conference of State Legislatures (NCSL), Republican legislators have introduced bills that would diminish access to the voting booth in over 40 states. All of these Republican proposals focus on one apparent goal: restrict ballot access and shrink the electorate — often in ways that would decrease Democratic votes.
Many of the proposals are in the form of voter ID legislation, which would require potential voters to present specified forms of identification in order to cast a ballot. Republicans supporting these measures claim they’re necessary to prevent “voter fraud.”
Too bad that “voter fraud” isn’t a problem that actually exists.
By all appearances, GOP efforts fall under the “When in doubt, disenfranchise” category. The Republican-led efforts aren’t addressing actual problems with the integrity of the voting process, unless you consider likely Democrats participating in elections to be a “problem.”
Of particular interest are voter-ID efforts, which are likely to disproportionately affect African Americans, the poor, and voters under the age of 30.
In other words, state Republican officials are targeting — without cause — the constituencies least likely to vote Republican. What a coincidence.
But there are related GOP efforts to stand in the precinct door. Patrick Caldwell has reported on Texas Republicans’ proposals designed to limit access to the polls, including absurd new restrictions on registering new voters. There are also measures in states like New Hampshire to block college students from registering in their adopted home states because, as one prominent GOP leader put it, “Voting as a liberal. That’s what kids do.”
We’re talking about a systematic effort, which is unfolding nationwide for a reason. The easiest way to win an election has nothing to do with candidates, fundraising, or grassroots operations. It’s to stack the deck long before the election — rigging the system so that those most likely to vote the “wrong” way simply don’t get to participate. We saw some of this during the Bush era, relying on odious tactics like “voter caging,” but the strategy is clearly expanding and intensifying.
Ideally, if Republicans are so panicky about losing elections, they should field better candidates and adopt a more sensible policy agenda, not push schemes to block Americans from voting. Indeed, Republicans routinely pull a lot of stunts, but few are as offensive as these anti-voting tactics. It’s one thing to lie one’s way through a campaign; it’s more damaging to the integrity of the country to stop people who disagree with you from even having a say in the process.
In a close election, where a percentage point or two can help dictate the future of the country, just how damaging can these tactics be? I guess we’ll find out soon enough.
By: Steve Benen, Contributing Writer, Washington Monthly
Ron Paul And The Civil Rights Act Of 1964
Last May, then-candidate Rand Paul’s (R) Senate campaign in Kentucky ran into a little trouble. The self-accredited ophthalmologist explained in newspaper, radio, and television interviews that he disapproved of the Civil Rights Act of 1964, because the private sector should be allowed to do as it pleases. “[T]his,” Paul said at the time, “is the hard part about believing in freedom.”
Asked specifically by Rachel Maddow, “Do you think that a private business has the right to say, ‘We don’t serve black people’?” Paul replied, “Yes.” Seven months later, he won easily.
Almost exactly a year later, Paul’s father, Republican presidential candidate Ron Paul, explained his nearly identical beliefs about the milestone civil rights legislation.
MSNBC’s Chris Matthews asked the Texas congressman, “The ‘64 civil rights bill, do you think an employer, a guy who runs his shop down in Texas or anywhere has a right to say, ‘If you’re black, you don’t come in my store’?” And with that, Paul explained he would have opposed the Civil Rights Act, adding, “I wouldn’t vote against getting rid of the Jim Crow laws.”
Matthews noted, “I once knew a laundromat when I was in the Peace Corps training in Louisiana, in Baker, Louisiana. A laundromat had this sign on it in glaze, ‘whites only on the laundromat, just to use the laundromat machines. This was a local shop saying ‘no blacks allowed.’ You say that should be legal.”
Paul didn’t deny the premise, but instead said, “That’s ancient history. That’s over and done with.”
I’d note in response that this isn’t “ancient” history — millions of Americans are old enough to remember segregation, and millions more are still feeling the effects. For that matter, that era is “over and done with” precisely because of laws like the Civil Rights Act of 1964. The country didn’t just progress by accident; it took brave men and women willing to bend the arc of history.
Let’s also not lose sight of the larger context. In 2011, the United States has a member of Congress and a Republican presidential candidate who publicly expresses his opposition to the Civil Rights Act of 1964. And because we’ve grown inured to GOP extremism, this somehow seems routine.
Indeed, it’s unlikely Paul’s rivals for the Republican presidential nomination will feel the need to condemn his remarks, and probably won’t even be asked about them.
By: Steve Benen, Political Animal, Washington Monthly, May 14, 2011
In America, Being Poor Is A Criminal Offense
It takes a special kind of bully to target the most vulnerable and neediest families in society, which millionaire politicians like to argue are draining America’s treasury. I am referring to Rep. Charles Boustany (R-LA), who recently introduced a bill that would require states to implement drug testing of applicants for and recipients of the federal Temporary Assistance for Needy Families (TANF) program. This is reminiscent of Sen. Orrin Hatch’s (R-UT) failed legislation last summer to drug test the unemployed and those receiving other forms of government cash assistance, which ultimately died in the Senate. So far, Boustany’s proposal is following the same fate as Hatch’s, but around the country states are taking matters into their own hands.
In at least 30 state Legislatures across America, predominately wealthy politicians are quite impressed with themselves for considering bills that would limit the meager amount of state help given to needy families struggling to make ends meet. Many have proposed drug testing with some even extending it to recipients of other public benefits as well, such as unemployment insurance, medical assistance, and food assistance, in an attempt to add more obstacles to families’ access to desperately needed aid.
Florida’s Legislature has passed a bill that will require welfare applicants to take drug tests before they can receive state aid. Once signed into law by Republican Gov. Rick Scott, which is likely, all adult recipients of federal cash benefits will be required to pay for the drug tests, which are typically around $35. In Maine, Republican lawmakers introduced two proposals that would impose mandatory drug testing on Maine residents who are enrolled in MaineCare, the state’s Medicaid program for low-income and disabled residents. Under a similar bill that passed both the House and Senate in Missouri, recipients found to be on drugs will still be eligible for benefits only if they enter drug treatment programs, though the state wouldn’t pick up the tab for their recovery.
In Massachusetts — where about 450,000 households receive cash or food assistance — a bill introduced by state Rep. Daniel B. Winslow (R-Norfolk) would set up a program requiring those seeking benefits to disclose credit limits and assets such as homes and boats, as well as the kind of car they drive. His reasoning is “If you have two cars and a snowmobile, then you aren’t poor. If we do this, we will be able to preserve our limited resources for those who are truly in need and weed out fraud, because we know there’s fraud and we’re not looking for it.” State Rep. Daniel K. Webster (R-Pembroke) filed a budget amendment requiring the state to verify immigration status of those seeking public benefits. Webster made it clear that his proposal does not mean he dislikes poor people or immigrants, but “this is all unsustainable and the system is being abused.”
This is rather shocking because I can’t recall any Republicans or Democrats demanding that the CEO of Bank of America or JP Morgan disclose inventory of their vacation homes, private jets, and yachts before bailing them out in what amounts to corporate welfare. Nor did they insist that these CEOs submit to alcohol and drug screenings before receiving taxpayer money. No objections were made regarding the immigration status of the people running these companies or whether they happen to employ undocumented workers for cheap labor.
Some would argue that corporations are different, in that they create jobs. To that I will point out that corporations are making record profits, even as they layoff workers and pay next to nothing in Federal income taxes. And this doesn’t even begin to scratch at the surface of corporate abuse by the very entities that are soaked in taxpayer money. Just contrast these proposals with the way the rich are treated in this country with billions of dollars in subsidies and tax breaks.
This is simply an extension of a conversation that began in 1996, when President Bill Clinton and House Speaker Newt Gingrich passed bipartisan welfare reform, whose results have been tragic to say the least. The 1996 Welfare Reform Act authorized, but did not require, states to impose mandatory drug testing as a prerequisite to receiving state welfare assistance. Back then, unproven allegations of criminal behavior and drug abuse among welfare recipients were the rationales cited by those in support of the bill’s many punitive measures that were infused with race, class, and gender bias.
The majority of the proposals for drug testing require no suspicion of drug use whatsoever. Instead they rest on the assumption that the poor are inherently inclined to immoral and illegal behavior, and therefore unworthy of privacy rights as guaranteed under the Fourth Amendment. These proposals simply reaffirm the longstanding concept of the poor as intrinsically prone to and deserving of their predicament. Jordan C. Budd, in his superb analysis Pledge Your Body for Your Bread: Welfare, Drug Testing, and the Inferior Fourth Amendment, demonstrates how the drug testing of welfare recipients is part of what’s called a “poverty exception” to the Constitution, particularly the Fourth Amendment, a bias that renders much of the Constitution irrelevant at best, and hostile at worst, to the American poor.
Kaaryn Gustafson extensively documents the trend toward the criminalization of poverty. She demonstrates how, in her words “welfare applicants are treated as presumptive liars, cheaters, and thieves,” which is “rooted in the notion that the poor are latent criminals and that anyone who is not part of the paid labor force is looking for a free handout.” I would argue that given the disdain that has been shown for “entitlements” over the years, it won’t be long before this treatment extends to Social Security, Medicare, and even Financial Aid recipients.
The notion that the poor are more prone to drug use has no basis in reality. Research shows that substance use is no more prevalent among people on welfare than it is among the working population, and is not a reliable indicator of an individual’s ability to secure employment. Furthermore, imposing additional sanctions on welfare recipients will disproportionately harm children, since welfare sanctions and benefit decreases have been shown to increase the risk that children will be hospitalized and face food insecurity. In addition, analysis shows that drug testing would be immensely more expensive than the acquired savings in reduced benefits for addicts
With regard to welfare legislation, it’s beneficial to highlight where on the class ladder members of Congress stand. According to a study by the Center for Responsive Politics released late last year, nearly half of the members in congress — 261 — were millionaires, compared to about 1 percent of Americans. The study also pointed out that 55 of these congressional millionaires had an average calculated wealth in 2009 of $10 million dollars and up, with eight in the $100 million-plus range. A more recent study released in March, found that 60 percent of Senate freshman and more than 40 percent of House freshmen of the 112th congress are millionaires.
Why is this so important? Because very few of our lawmakers understand what it’s like to struggle financially. Millionaires can generally afford healthcare without grappling with unemployment, foreclosure, or an empty refrigerator. The majority of our representatives haven’t a clue what the daily lives of the people they represent are like, let alone the constant struggle of single mothers living below the poverty line. They are constantly arguing that we all must sacrifice with our pensions, our wages, our education, the security of our communities, and with the belly’s of our children, while they sit atop heavily guarded piles of money.
With the ranks of the underclass growing and the unemployment level at a staggering 9%, it’s more clear than ever that the wealth divide between “we the people” and our representatives has caused a dangerous disconnect. State and federal legislators claim to be acting fiscally responsible, but they support budgets that create unimaginably difficult circumstances for the lives of the most vulnerable people, especially children. There is no question that these newest proposals amount to class warfare, and the longer we ignore it, the more it will spread.
By: Rania Khalek, CommonDreams.org, May 14, 2011
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