Looming Government Shutdown Reminds Us That Congress Is Not A Business
It’s become common to bash large public institutions with the phrase, “if I ran my business the way they run [government/public schools/whatever], I’d be bankrupt.”
Maybe so. But Congress and law making are not businesses (the high-cost business of campaigning and lobbying aside). And public schools are not businesses, either.
Still there’s a tendency to think that putting corporate executives or small business owners in leadership positions at public institutions will somehow make those entities profitable or successful. That accounts for the election of some businesspeople to Congress, and the appointment of former magazine magnate Cathie Black as New York City schools chancellor.
Just a few months after her appointment by New York City Mayor Michael Bloomberg, Black is out. It was hardly a surprise, her approval rating among city residents had been an anemic 17 percent, according to a Quinnipiac University poll released last month. She had made some foolish comments, such as suggesting that birth control was the solution to schools overcrowding, and she upset some parents with her proposal to install an “elite” new high school inside an existing Park Slope high school.
Black had no education experience, which might have contributed to her troubles. She may be great at bottom-line decisions, but such calculations are nearly impossible in a public school. You can’t fire your students to improve your graduation rate. You can call a school “failing” for not reaching certain testing standards, but the school can’t do anything about the challenges–such as poverty, substance abuse in the home, or language barriers–that make certain student populations more difficult to teach.
And ironically, the business model on Wall Street doesn’t follow the market approach being imposed on schools. Financial big-wigs who helped run the economy into the ground got big bonuses, despite their poor performance. Their businesses weren’t closed for incompetence; they were given government bailouts. There is indeed an argument to be made that letting those businesses fail would have done tremendous damage to innocent parties, such as people whose IRAs are dependent on the performance of stocks over which they have no control. So why are schools not given the same “business” courtesy?
The same goes for the federal budget. Sure, one couldn’t run a business budget in the same way. But then, the government can’t fire Social Security recipients. It can’t–not without planning and consensus–decide to shutter “underperforming” enterprises such as the Afghan war. The government is meant to take care of everyone, to some degree, and unlike a business, the government can’t pick and choose which customers to target.
As stubbornness in Congress threatens a government shutdown, lawmakers tethered to a business model approach should remember their roles. A CEO or small business owner can dictate; a House member is one of 435 and must accept the needs and perspectives of the rest of the chamber. Businesses can price items high enough to cut out low-income consumers. Government has an obligation–though to what degree is a valid discussion–to protect the neediest. Having former businesspeople in Congress provides a valuable perspective in a diverse institution. But Congress is not a business.
By: Susan Milligan, U.S. News and World Report, April 7, 2011
In This Fantasy Budget Deficit And Debt Fight, the Tea Party Refuses To Take ‘Yes’ For An Answer
Suppose I told you that I knew of a simple way to alleviate the budget deficit problem, and that it would require Congress not to do anything at all. You’d conclude that this was the poor start to a late April Fools’ column.
But unhappily the April Fools’ joke unfolding in the nation’s capital is the fantasy budget and spending debate itself. It’s rooted in an unreality that is about to crash into an unyielding real world, possibly in the form of a government shutdown.
The Congressional Budget Office, a nonpartisan fiscal scorekeeper, projects the budget deficit will be $1.5 trillion this year, or 9.8 percent of gross domestic product. In order to achieve budget stability and sustainability, according to economists, that figure should be around 3 percent of GDP. But here’s the good news: The CBO projects that the deficit will “drop markedly over the next few years as a share of output and average 3.1 percent of GDP from 2014 to 2021.” We’re saved! And it gets better: “Those projections . . . are based on the assumption that tax and spending policies unfold as specified in current law.”
In other words, all Congress has to do is what they seem ideally suited to these days—nothing. Ah, but there’s the rub. CBO continues that its projections “understate the budget deficits that would occur if many policies currently in place were continued, rather than allowed to expire as scheduled under current law.” Those policies include the Bush tax cuts. They also include annual spending punts that enjoy broad bipartisan support, like preventing the Alternative Minimum Tax’s bracket creep from snagging the middle class, and the “doc fix,” which pushes back a scheduled cut in Medicare payments.
So the solution isn’t so simple. But lawmakers wishing to do more than talk about dealing with the deficit could demand offsets for these policy changes. Instead, we’re reminded of the reality that even the toughest self-styled budget hawks–including Budget Committee Chairman Paul Ryan, who describes dealing with the deficit as a “moral imperative” but advocates extending the Bush tax cuts in full in perpetuity at a cost of nearly $4 trillion–are actually strutting budget peacocks more concerned with perception than results, or fiscal results anyway.
Take, for example, the Republican Study Committee, the hawkiest of the GOP budgetary birds of prey and enforcers of the party’s economic dogma. Going by reputation, they should be able to proffer a budget plan to bring the deficit into line. But the Concord Coalition, a group focused on eliminating the deficit, last month used CBO numbers to examine a scenario under which the Study Committee got its tax-and-spending wish list, which includes an extension of the Bush tax cuts, repeal of the Obama healthcare law (which CBO scores as a money-saver, meaning that repeal adds to the deficit), and $2.7 trillion saved in a spending freeze and cuts. The result? “Under this scenario, the resulting deficits would be $2.1 trillion larger over 10 years,” according to Concord, which concludes, “A budget that uses honest numbers and reflects Republicans’ current policy preferences will result in large continuing deficits.”
But nevertheless, and in the face of six recent years of GOP control over both the White House and Congress, Republicans have won the budget perception battle, and soundly. A poll released last week by Democracy Corps, a group of prominent liberal pollsters including Stan Greenberg and James Carville, found that independent voters are “still hesitant to trust Democrats on spending.”
Meanwhile the debate in Washington has focused almost entirely on spending cuts, even though polls show that voters are more concerned about jobs and the economy than the budget and the deficit—and even though most economists agree that the GOP’s proposed spending cuts would set back the recovery.
But the clearest example of the GOP having the Democrats on the run can be found in the current negotiations aimed at averting a government shutdown in a week. House Republican leaders originally wanted $32 billion in spending cuts for this year; that figure prompted a conservative backlash that ended with the House passing $61 billion in cuts. Now, according to press reports, negotiators have settled on $33 billion in cuts. In other words, the GOP, which controls one of three players in this negotiation, has already achieved its original budgetary goal. In this regard, House Speaker John Boehner seems to have (intentionally or not) used his Tea Party wing as a perfect foil to pull the debate to the right.
But judging by last Thursday’s Tea Party demonstration on the Hill—aimed at the GOP, mind you—conservatives don’t seem capable of banking their win and moving on to the next fight. They see anything less than total victory as an abject surrender.
And in that sense reality is about to intrude upon their budgetary-political fantasy land. The reality is that while voters like spending cuts in the abstract, polls show they object to the particulars of the GOP agenda. That reality is already taking hold at the state level where, Politico reported last week, the wave of newly elected governors trying to get tough on budgets have seen their approval ratings collapse.
And the experience of state governments also provides an insight into the possible winners and losers in a government shutdown. A pair of political scientists published a paper last year looking at the effects of such budgetary breakdowns (167 of them since 1988) at the state level, reports the Washington Post’s Ezra Klein. The study found that voters tend to punish legislators while rewarding the executive. So a shutdown would benefit President Obama while hurting lawmakers in both parties.
So if members of Congress let the government shut down on Friday, they will be the real April fools.
By: Robert Schlesinger, U.S. News and World Report, April 6, 2011
Wisconsin Waterloo: Where The GOP Sees Demons To Attack, Voters See Themselves
Wisconsin Democrats are filing recall petitions that could result in the Wisconsin Senate being controlled by Democrats. Summer 2011 will bring white-hot midterm elections and a potential Wisconsin Waterloo for the GOP that is spreading to other states and could shift the tectonic plate of American politics.
In Wisconsin, Ohio and other states a powerful backlash is brewing from giant swaths of voters who failed to turn out for Democrats or regret their votes for Republicans in 2010. They feel demonized by GOP attacks and financially threatened by GOP policies. They will be highly motivated to vote.
Wisconsin Democrats could win the three state Senate seats necessary to turn control of the Wisconsin Senate to the Dems, because voters do not want political holy wars against teachers, public workers or anyone else. They do not want fanatics in politics, fiats by government, incendiary partisanship or crusades against collective bargaining, which voters widely believe is a valued part of the American system.
Recently the Polish trade union Solidarity, one of the great voices for freedom in modern history, endorsed the Wisconsin workers and condemned the attacks on them by GOP Gov. Scott Walker. More voters agree with Solidarity than with Wisconsin Republicans.
In Ohio, the widely unpopular Republican governor, John Kasich, who was caught on tape verbally abusing a police officer who gave him a ticket, has now added both police and firefighters to the list of enemies he attacked in legislation. Most Americans view firefighters and police as heroes who risk their lives to save their neighbors, not as demons to attack or targets to have their financial security threatened.
In Washington, the GOP has added the venerable AARP to its enemies list. AARP has long represented tens of millions of seniors with honor. For Republicans to launch a Nixonian attack against them is an act of political stupidity that will not be well-received by senior voters.
Republicans wage holy war against National Public Radio, one of the fairest media in the nation, and one that provides vital service to small-town America and includes many Republicans among its fans.
Republicans threaten to shut down the government to pursue their war against Planned Parenthood, which is supported by many Republican women, while they attack a long list of programs important to mainstream American women. Many Republicans oppose efforts to achieve pay equity for women.
House Republicans even want to cut programs that help homeless veterans, cuts that Sens. Harry Reid (D-Nev.) and Sherrod Brown (D-Ohio) speak eloquently against.
The Texas GOP is likely to attempt to cheat Hispanics out of representation in Congress through a gerrymander similar to that once orchestrated by disgraced former House Republican Leader Tom DeLay. Many Republicans use tactics on immigration that are anathema to many Hispanics.
House Republicans will be widely blamed for any government shutdown or economic collapse from a failure to extend the debt ceiling if they pursue their partisan and ideological vendettas and refuse to accept 50-50 offers from Democrats.
A Wisconsin Waterloo is a real danger to Republicans. Where the GOP sees demons to attack, many voters see themselves.
By: Brent Budowsky, The Hill, April 4, 2011
A SUCKER’S BET: Are Republicans Really Prepared To “Gamble On Entitlement Reform”?
The effort to pass a budget for the remainder of the fiscal year will be the principal challenge for policymakers over the next few days, but while that work continues, congressional Republicans will also start a massive fight over the next budget.
We’ll have more on this later — sneak preview: the GOP wants to gut entitlements — but as the process gets underway, it’s worth pausing to appreciate the politics here. The Weekly Standard‘s Stephen Hayes has a lengthy new report, arguing that Republicans are prepared to “gamble on entitlement reform,” and the GOP thinks it can win this time.
If there is one thing that political strategists, pollsters, and elected officials of both parties have agreed on for decades, it’s that entitlement reform is a sure political loser. Social Security is the “third rail” — touch it and you die. Suggest changes to Medicaid and you don’t care about the poor. Propose modest reforms to Medicare and you’re the target of a well-funded “Mediscare” campaign that ensures your defeat.
No longer.
“People are getting it that these things are unsustainable,” says Karl Rove. “For so many people, debt is no longer abstract. It’s more concrete. I don’t know if it’s seeing Greece on TV or what. It’s still tough, but it’s not the political loser it used to be.”
Other influential Republicans go further. They believe that getting serious about entitlement reform can be politically advantageous.
“I think it can be a real winner for Republicans if we handle it the right way,” says South Carolina senator Jim DeMint.
The piece goes on to quote all kinds of Republicans, all of whom genuinely seem to believe there’s a public appetite for their entitlement agenda. GOP officials have been too scared to tackle this in earnest before, the theory goes, but bolstered by public support, this time will be different. This time, they say, Americans want entitlement cuts, and Democratic criticisms will fall on deaf ears.
Time will tell, I suppose, but all of the available evidence suggests these folks have no idea what they’re talking about, and are poised to pursue one of the most dramatic examples of political overreach we’ve seen in a very long time.
Republicans can presumably read polls as easily as I can, but let’s focus for a moment on the latest CNN poll, released late last week. Asked, for example, about Medicaid funding, a combined 75% want funding levels to stay the same or go up. For Social Security, 87% of Americans want funding levels to stay the same or go up. For Medicare, 87% want funding levels to stay the same or go up — and most want funding to increase, not stay the same.
For some reason, Hayes and his allies look at numbers like these and think Republicans will benefit from pushing entitlement cuts. No, seriously, that’s what they think. GOP leaders are not only arguing this, they’re actually counting on it as part of a larger political strategy.
Karl Rove, ostensibly the GOP’s most gifted strategist, believes Americans may be “seeing Greece on TV,” and suddenly find themselves favoring Medicare cuts.
I don’t think he’s kidding.
Hayes noted in his piece, “So have things really changed? We’ll soon find out.”
On this point, we agree.
By: Steve Bensen, Washington Monthly, April 4, 2011
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