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A Conspicuous Pattern: The GOP Is Really Not Interested In Governing

At his press conference the other day, President Obama noted the recommendations of the bipartisan deficit-reduction commission (which, by the way, failed to reach an agreement). He mentioned in passing that his White House set up the structure for the commission: “As you will recall, this was originally bipartisan legislation that some of the Republican supporters of decided to vote against when I said I supported it — that seems to be a pattern that I’m still puzzled by.”

It is, to be sure, quite a pattern. For two-and-a-half years, Obama has run into congressional Republicans who not only refuse to take “yes” for an answer, but routinely oppose their own ideas when the president is willing to accept them.

This seems especially relevant in the context of the current debt-reduction talks. At a certain level, it’s almost comical — here we have a Democratic president agreeing with a conservative Republican House Speaker on a massive deal that would lower the debt by over $4 trillion over the next decade. It would tilt heavily in the GOP’s direction, and address the problem Republicans pretend to care about most. Obama is even willing to consider significant entitlement “reforms,” which should be music to the ears of the right.

And yet, in the latest example that “puzzles” the president, Republicans aren’t interested.

Now, part of this is obviously the result of Republicans adopting a faith-based approach to revenue, which happens to be wildly disconnected to reality. But that’s not the only angle that matters. Matt Yglesias had a good item the other day that raised a point that’s often lost in the shuffle.

[H]ere we get to the problem that’s recurred throughout Obama’s time in office. If members of Congress think like partisans who want to capture the White House, then the smart strategy for them is to refuse to do whatever it is the president wants. The content of the president’s desire is irrelevant. But the more ambitious his desire is, the more important it is to turn him down.

After all, if the President wants a big bipartisan deal on the deficit, then a big bipartisan deal on the deficit is “a win for President Obama,” which means a loss for the anti-Obama side. When Obama didn’t want to embrace Bowles-Simpson, then failure to embrace Bowles-Simpson was a valid critique of him. But had Obama embraced Bowles-Simpson, then it would have been necessary for his opponents to reject it.

For weeks, many have marveled at the priorities of the Republican policy wish-list — given a choice between the larger debt-reduction plan in American history and preserving some tax breaks for the wealthy, GOP officials at nearly every level strongly prefer the latter. Indeed, for nearly all Republicans, it’s such a no-brainer, this question is almost silly.

But there’s a separate challenge — Republicans have a choice between advancing policies they ostensibly agree with and Obama scoring a legislative victory. And as it turns out, that’s a no-brainer, too, since GOP lawmakers don’t really care about governing so much as they care about denying the president political victories. It might make them appear ridiculous — why would anyone reject their own ideas? — but looking foolish isn’t a major concern for congressional Republicans.

Obviously, this makes compromise literally impossible, and all but guarantees the least productive legislative session in many years. But it also suggests the president needs to adapt to an awkward set of circumstances: given Republican beliefs, Obama must realize his support for a legislative idea necessarily means it’s less likely to happen.

By: Steve Benen, Contributing Writer, Political Animal, Washington Monthly, July 17, 2011

July 18, 2011 Posted by | Budget, Congress, Conservatives, Debt Ceiling, Deficits, Democracy, Democrats, Economic Recovery, Economy, GOP, Government, Government Shut Down, Ideologues, Ideology, Lawmakers, Medicare, Politics, President Obama, Republicans, Right Wing, Tax Loopholes, Taxes, Wealthy | , , , , , , , , , , | Leave a comment

On Debt Impasse, GOP Full Of Contradictions

Sen. Mitch McConnell has a clever plan to resolve the federal debt impasse. Congressional Republicans would invite President Barack Obama to raise the debt ceiling on his own, and then they would excoriate him for doing so.

Hmm. Just a bit contradictory?

Meanwhile, the impasse arose because congressional Republicans thunder against government red ink, yet refuse to raise revenue by ending tax breaks that help Warren Buffett pay a lower tax rate than his receptionist (which he agrees is preposterous). Another contradiction? Of course.

McConnell’s plan – a pragmatic way to avert a catastrophic default – may be torpedoed by more extremist House Republicans, such as Michele Bachmann. They seem to fear that ending tax loopholes for billionaire fund managers would damage a fragile economy. Yet they seem to think that this invalid of an economy would be unperturbed by the risk of a default on our debts.

A contra- . . . yes, you got it!

What about this one? Republicans have historically been more focused on national security threats than Democrats. Yet what would do more damage to America’s national security than a default that might halt paychecks for American military families?

This game of “spot the contradiction” is just too easy with extremist Republicans; it’s like spotting snowflakes in a blizzard. Congressional Republicans have taken a sensible and important concern – alarm about long-term debt levels, a genuine problem – and turned it into a brittle and urgent ideology.

Politicians in both parties have historically been irresponsible with money, but President Bill Clinton changed that. He imposed a stunning fiscal discipline and set the United States on a course of budget surpluses, job growth and diminishing federal debt – until the Republicans took over in 2001.

In the Bush years, Republicans proved themselves reckless both on the spending side (unfunded wars and a prescription drug benefit) and on the revenue side (the Bush tax cuts). Their view then was, as former Treasury Secretary Paul O’Neill quoted Vice President Dick Cheney as saying, “Reagan proved deficits don’t matter.”

It may seem odd that Republicans were so blithe about debt in the Bush years, yet now insist on addressing the problem in the middle of a downturn – even though basic economics dictates that a downturn is the one time when red ink is advisable. Well, just another of those contradictions.

Then there’s the rise of health care costs, a huge burden on our economy. It’s pretty clear what doesn’t work: the existing, dysfunctional system. A forthcoming book on health care by Paul Starr, “Remedy and Reaction,” notes that in 1970 the United States spent a smaller fraction of income on health care than Denmark and the same share as Canada.

Today, in dollar terms, we spend 21/2 times the average per capita of other rich countries.

When congressional Republicans do talk about health care, they have one useful suggestion – tort reform – and it was foolish for Democrats (in bed with trial lawyers) to stiff them on it. But research suggests that curbing malpractice suits, while helpful, would reduce health costs only modestly.

Beyond that, the serious Republican idea is to dismantle Medicare in its present form. That would indeed reduce government spending but would increase private spending by even more, according to the CBO.

The Obama health care plan could have done better on cost control, but it does promote evidence-based medicine, so that less money is squandered on expensive procedures that don’t work. And the Independent Payment Advisory Board will recommend steps to curb excess spending in Medicare.

Yet congressional Republicans are trying to kill the Obama health plan. Yes, of course: another contradiction.

A final puzzle concerns not just the Republican Party but us as a nation. For all their flaws, congressional Republicans have been stunningly successful in framing the national debate. Instead of discussing a jobs program to deal with the worst downturn in 70 years, we’re debating spending cuts – and most voters say in polls that they’re against raising the debt ceiling. I fear that instead of banishing contradictions, we as a nation may be embracing them.

By: Nicholas Kristof, Columnist, The New York Times, Published in the Milwaukee Journal Sentinel, July 14, 2011

July 18, 2011 Posted by | Affordable Care Act, Budget, Congress, Conservatives, Debt Ceiling, Deficits, Economic Recovery, Economy, GOP, Government, Government Shut Down, Health Care Costs, Ideologues, Ideology, Jobs, Medicare, Middle Class, National Security, Politics, President Obama, Republicans, Right Wing, Tax Loopholes, Taxes | , , , , , , , , , , , , , , | Leave a comment

How Can Anyone Take The GOP Seriously: The Dismal Republican Record On Taxes

“In the present weak economic climate,” a group of conservatives, including Newt Gingrich, wrote in an open statement, “we believe that to restore the health of the economy and put Americans back to work, America should follow a course against high taxes and federal spending.”

The White House was unmoved. “Republicans may feel they can’t go to voters after supporting a tax increase,” one administration official told the New York Times. “We’ve got to convince them that the situation won’t be as devastating as it would be if the tax bill is sabotaged.”

The latest moves in the debt ceiling debate? Not quite: The administration was Ronald Reagan’s, and the year was 1982. With his previous year’s landmark tax cuts having exploded the budget deficit, Reagan had reluctantly backed a tax increase to bring it back under control, prompting a minor conservative uprising led by then Rep. Jack Kemp and which included then backbench House member Gingrich. “You can’t have the largest tax cut in history and then turn around and have the largest tax increase in history,” one conservative rebel groused.

Right-wing economists issued dire forecasts. Arthur Laffer, widely described as the father of supply-side economics, warned that the bill would “stifle economic recovery” and “lengthen and deepen the recession.” The president of the U.S. Chamber of Commerce wrote that the tax hike would “curb the economic recovery everyone wants,” adding: “It will mean a lower cash flow as more businesses pay more taxes, with a depressing effect on stock prices. It will reduce incentives for the increased savings and investment so badly needed to improve productivity and create more jobs.” As Bruce Bartlett, an early supply-sider and Reagan aide who has since recanted the faith, noted last month, “It would be hard to find an economic forecast that was more wrong in every respect.” Real gross domestic product grew at 4.5 percent in 1983 and 7.2 percent in 1984, while unemployment fell from 10.6 percent in December 1982 to 7.1 percent in 1984.

Just about the only thing the conservative rebels got right back in 1982 was Gingrich’s comment to the New York Times that the skirmish was the “opening round of a fight over the soul and future of the Republican Party.” Looking back, the extent to which the conservatives won the fight within the party while losing the war with economic reality is fairly astounding. In the nearly three decades since, the Republican feeling toward tax increases has moved from Reaganesque dislike but acceptance (he signed tax increases into law in seven of his eight years in office) to their current, blindly absolutist position flatly opposing any tax increases at all, even in the face of spiraling deficits and possible economic default.

Witness comments like House Speaker John Boehner’s that “raising taxes is going to destroy jobs.” The rhetoric hasn’t changed much since 1982, but the accumulated evidence against this GOP dogma is overwhelming.

Gingrich was again at the forefront of the fight against taxes in 1993 when he warned that the Clinton budget plan “will in fact kill the current recovery and put us back in a recession.” Rep. Dick Armey, who would go on to be House majority leader and now is a Tea Party godfather, warned that “the impact on job creation is going to be devastating.” Texas GOP Sen. Phil Gramm warned that the budget deal was a “one-way ticket to a recession,” adding that Clinton’s would be one of the jobs killed by the bill. (Gramm would seek Clinton’s job, but couldn’t best Bob Dole; he was last seen being muzzled by John McCain’s presidential campaign in 2008 after calling the country a “nation of whiners.”) Laffer warned that “Clinton’s tax bill will do about as much damage to the U.S. economy as could be feasibly done in the current political environment.” Boehner himself dismissed the Clinton plan as “Christmas in August for liberal Democrats: more taxes, more spending, and bigger government.”

He got the Christmas part right. Unemployment, which had been 7.1 percent in January 1993, fell to 5.4 percent by the end of 1994. Real GDP grew from 2.9 percent in 1993 to 4.1 percent in 1994. The final tally of the Clinton years was 23 million new jobs and a budget surplus.

Clinton and his villainous tax hikes were followed by George W. Bush and his cure-all tax cuts. “Tax relief will create new jobs,” Bush argued in April 2001. “Tax relief will generate new wealth.” When the bill was enacted that June, GOP Rep. Mike Pence (now running for governor of Indiana) gushed that they would “stimulate our economy” and “put the ax to the root of the Internal Revenue Code as it wages war on the American dream.”

How’d that turn out? From 2001 to 2007, jobs grew at one fifth the pace of the 1990s, the slowest rate in the post-World War II era. GDP in those years grew at half the rate of the 1990s. Oh yeah, and the deficit exploded. Fully 10 years after the largest tax cuts in history, the economy had shed 1.1 million jobs. It seems Pence’s ax was put to the root of the American dream itself.

Given the historical and economic record, one has to ask: How can anyone take the GOP seriously, especially when they are playing fast and loose with economic disaster in service to a political philosophy that not even their main icon—Reagan—followed with such monomania?

Decrying the Clinton tax plan in 1993, Boehner recalled the quote: “Those who do not learn from history are doomed to repeat it.” He went on, “It very appropriately applies to Congress today.” That’s one piece of rhetoric Boehner really should recycle. And learn from.

By: Robert Schlesinger, U. S. News and World Report, July 13, 2011

July 14, 2011 Posted by | Businesses, Congress, Conservatives, Debt Ceiling, Deficits, Democracy, Economic Recovery, Economy, Elections, GOP, Government, Government Shut Down, Ideologues, Ideology, Jobs, Politics, Republicans, Right Wing, Tax Increases, Tax Loopholes, Taxes, U.S. Chamber of Commerce, Unemployment, Voters, Wealthy | , , , , , , , , | Leave a comment

Eric Cantor’s Slick Upper Lip: “I Want What I Want When I Want it”

Eric Cantor has perfected the strategic sneer.

It comes, frequently, when he answers a reporter’s question about something President Obama has said: The House majority leader’s lip curls up on the left side and a look of disgust washes over his face. This week, he has been coupling the sneer with lines such as:

“How in the world can you even accept that notion?”

And, “That is laughable on its face.”

And, “That doesn’t make sense. . . . That again is just nonsensical.”

And, “Come on — let us think about this.”

Cantor, who is establishing himself as the lead GOP negotiator with the White House as the Aug. 2 default deadline approaches, is answering calls for compromise with contempt. He shook his fist during a news conference Tuesday and said that Obama’s thinking is “unfathomable to me.” To Obama’s complaint that the wealthy are not sharing in the budget sacrifice, he scoffed: “There is plenty of so-called shared sacrifice.” Asked about Obama’s belief that people like him should pay more in taxes, Cantor retorts: “You know what? He can write a check any time he wants.”

He draws out the vowels in a style that is part southern, part smarty-pants. Had young Cantor spoken like this at his prep school in Richmond, the bigger boys may well have wiped that sneer off his face. Yet even then, Cantor was accustomed to having things his way. According to Cantor’s hometown Richmond Times-Dispatch, the quotation he chose to accompany his yearbook photo was “I want what I want when I want it.”

What Cantor wants now is power — and he is prepared to risk the full faith and credit of the United States to get it. In a primacy struggle with House Speaker John Boehner, he has done a deft job of aligning himself with Tea Party House members in opposition to any meaningful deal to resolve the debt. If the U.S. government defaults, it will have much to do with Cantor.

He pulled out of debt-limit talks with Vice President Biden. He shot down the outline of a compromise that Boehner attempted to negotiate. Now Cantor has essentially taken over talks with the White House, and he has tamped down any hint of conciliation.

On Monday, Boehner hinted that he could accept a tax-reform deal that brought “additional revenues to the federal government” — and his spokesman confirmed that the proposal would be “scored” by the Congressional Budget Office as increasing tax revenue. But Cantor was having none of it: “We are not raising taxes, so it has to be net revenue neutral.”

Cantor’s aides say he is merely reflecting his caucus. But Cantor, a veteran of a decade in the Capitol, surely knows that he is jettisoning the last chance in the next couple of years to make a serious dent in the national debt. The White House has so far offered up a tantalizing array of concessions — $4 trillion in budget cuts and overhauls of Medicare, Medicaid and Social Security – but Cantor has yet to offer anything but sneers.

He flashed the trademark facial expression even before taking his seat at a Monday news conference. Asked whether he would offer any concessions, Cantor responded by saying that the cuts he demanded from the White House were in fact concessions by him, too. “Nobody relishes the opportunity to go and cut these programs,” said the creator of the YouCut Web site that made budget-cutting into an online game. Cantor further said that it was a concession merely to avoid a government default.

The search for a Cantor concession continued. “In terms of shared sacrifice across the country, do you see that one as necessary?”

Cantor swung his arm over his chair back and raised his upper lip. “I think behind this notion of ‘We want shared sacrifice’ that they continue to say means, ‘We want to raise taxes,’ ” he said.

Claiming that there have been “concessions made already” by his side, Cantor was pressed to name some of them. “I don’t want to get into specifics now,” he said.

Leaving a House Republican caucus meeting Tuesday morning, Cantor approached the microphones, flashed the cameras a good-morning sneer and demanded to know “why in the world” Obama wants to increase taxes.

NBC’s Luke Russert asked what “sacred cows” Cantor would be willing to sacrifice. Cantor repeated his denunciation of Obama’s tax policy.

“Where do the Republicans feel pain here, though?” Russert persisted.

After a long and contemptuous day, the majority leader probably feels it most in his upper lip.

 

By: Dana Milbank, Opinion Writer, The Washington Post, July 12, 2011

July 13, 2011 Posted by | Congress, Conservatives, Debt Ceiling, Democracy, Economic Recovery, Economy, GOP, Government, Government Shut Down, Ideologues, Ideology, Politics, Republicans, Right Wing, Tax Loopholes, Taxes, Unemployed, Wealthy | , , , , , , , , | Leave a comment

Economic Illiteracy: GOP Catering To Tea Party Ignorance On Debt Ceiling

What happens when you take the certainty of an ideologue, mix in an unhealthy dose of economic illiteracy, shameless demagoguery, and bring the combustible mix to a boil on the national stage? Quite possibly national default and a new recession.

The nature of this mix—and the corner into which GOP leaders have  painted themselves—is neatly illustrated in the latest poll numbers from The Washington Post and the Pew Research Center.

As the Post’s Chris Cillizza and Aaron Blake note today:

The data suggests that those who identify as Republicans who are supportive of the tea party not only view themselves as far more educated than the average person on the current debt debate, but are also far more worried about the impact if the debt limit is increased.

More than eight in 10 tea party supporters (81 percent) said they understand “what would happen if the government does not raise the federal debt limit” — far more than the 55 percent of all respondents who said the same thing.

Three quarters of tea party supporters said that they were more concerned that raising the debt ceiling would “lead to higher government spending and make the national debt bigger,” while just 19 percent said they were more worried that “not raising the debt limit would force the government into default and hurt the nation’s economy.”

The message from the numbers? Tea party backers simply don’t believe that not raising the debt limit by Aug. 2 is all that big a deal — and they feel that way because they believe they understand the issue inside and out.

If a significant chunk of his House members don’t fear the consequences of a default, it’s very difficult for Boehner to make the case for the fierce urgency of now in the debt debate.

While the overwhelming number of economists—and even prominent non-economists like John Boehner and Mitch McConnell, who have both stated that not raising the debt ceiling is unthinkable—say that failure to raise the debt ceiling could have a host of nasty consequences for the economy, like a global financial crisis, downgrading of the U.S. credit rating, and a second recession … the Tea Party crowd has anointed itself a group of experts who know better.

This is why Eric Cantor could with a (presumably) straight face argue yesterday that the GOP’s great concession in this debate was considering a debt ceiling increase at all. But sorry, our base is too wound up in its own misconceptions to allow us to do the slam dunk right thing for the county is the politics of cowardice. And it’s a brand that Cantor, who has referred to the debt ceiling crisis as a “leverage moment”—an opportunity for the GOP to extract concessions in order to be forced to do the right thing—has played with either cold cynicism or reckless stupidity.

Then there’s Boehner, who acknowledges the debt ceiling must be raised but cloaks it in the language of Obama getting “his” rise in the debt ceiling—as if keeping the country from an economic disaster is some parochial, partisan, hobby.

No less a publication than The Economist, hardly a hotbed of socialist foment, recently called the GOP position “economically illiterate and disgracefully cynical.” I think that’s about right.

By: Robert Schlesinger, U. S. News and World Report, July 12, 2011

July 12, 2011 Posted by | Class Warfare, Congress, Conservatives, Debt Ceiling, Deficits, Democracy, Economic Recovery, Economy, GOP, Government, Government Shut Down, Ideologues, Ideology, Jobs, Middle Class, Politics, Republicans, Right Wing, Tax Loopholes, Taxes, Tea Party | , , , , , , , , , | Leave a comment