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“Always Pick Door Number 2”: The Lessons Of John Boehner’s Latest Failure

A last-ditch plan by House Republicans to extract concessions in exchange for hiking the nation’s borrowing limit fell apart Tuesday morning, with conservative holdouts leaving the party short of the necessary votes.

That the GOP caved isn’t as surprising as the speed with which it did, just a few minutes into a morning conference meeting. All along, it was clear Republicans had no leverage with their debt-ceiling threats; they’d caved before, and public opinion was firmly against more debt limit extortion.

Still, the GOP’s latest debt ceiling defeat is yet another sign of how difficult it has become for Speaker John Boehner (R-Ohio) to move anything through his divided caucus. And Boehner’s inability to control his party is a real liability, as it’s given Democrats even less reason to concede ground in future negotiations — not only on the debt ceiling, but on other major issues as well.

Even after Republicans self immolated during last year’s debt ceiling negotiations by offering a fantastical hostage list, the party again wanted to extract some kind of concessions this time. But though the ask list was smaller, the party again couldn’t agree on a single plan, and a handful of proposals quickly collapsed. In a weird Bizarro World twist, the last idea — to restore pension benefits to some veterans — would have had Republicans either voting to raise spending, or voting against the military.

In the end, the potential damage to the GOP was so great that party leaders knew they had two options on the debt ceiling: Stand firm and destroy the party’s approval rating (again), or ask Democrats for help. Boehner gave the finger to the Tea Party and picked Door Number 2.

So now, Democrats and President Obama, who insisted throughout the ordeal that they would only support a clean debt ceiling vote, have watched the GOP cave once again. When Republicans return with more debt ceiling demands in the future, Democrats will surely be emboldened to shrug them off and say “nope” again, confident the demands are merely more empty threats.

But will Boehner keep bucking the right wing? Immigration offers a salient test case, with Boehner seemingly interested in passing some reforms, and conservative critics blasting any action as “amnesty.”

The fallout for Republicans from spiking immigration this year wouldn’t be as visceral as the damage from, say, the government shutdown. But it would give Democrats a huge talking point — “Republicans are anti-immigration” — and further impinge on the party’s ability to court minority voters.

In short, Boehner is, as he has been for some time, caught between his need to appease the right and his need to do his job. The latest debt ceiling brouhaha has only exposed how tricky that balancing act is, and shown Democrats that, with a little pressure, they can force him to dump the right and seek out their help.

 

By: Jon Terbush, The Week, February 11, 2014

February 12, 2014 Posted by | Debt Ceiling, John Boehner | , , , , , , , | Leave a comment

“Liberals, Conservatives, And The Meaning Of Work”: Ideological Republicans Do Not Understand What It Means To Be Human

It appears that those who talk so much about “economic freedom” aren’t too happy when ordinary people have more choices.

It isn’t often that we spend an entire week talking about a Congressional Budget Office report and its implications, but the one currently occupying Washington’s attention—about the effects of the Affordable Care Act on the labor force—is actually pretty revealing. To catch you up, the CBO said that due to the fact that under the ACA people are no longer tied to jobs they’d prefer to leave because they can’t get health insurance on the individual market (“job lock”), many will do things like retire early, take time off to stay at home with kids, or quit and start businesses. They projected that these departures will add up to the equivalent of 2 to 2.5 million full-time positions. At first, Republicans cried “Obamacare will kill 2 million jobs!”, but when everyone, including the CBO’s director, said that was a blatantly misleading reading of what the report actually said, they changed their tune. And here’s where it gets interesting, because this debate is getting to the heart of what work means, what freedom is—and for whom—and just what kind of an economy we want to have.

Paul Ryan may have been the first Republican to articulate the new attack based on the CBO’s report, when in a hearing on Wendnesday he lamented that fewer Americans would “get on the ladder of life, to begin working, getting the dignity of work, getting more opportunities, rising the income, joining the middle class.” The argument was quickly picked up by others. “I think any law you pass that discourages people from working can’t be a good idea. Why would we want to do that? ” asked Senator Roy Blunt on Fox News Sunday. Representative Tom Cole said the same thing on This Week: “Anything that discourages work—and that’s essentially what the CBO found, that this discourages some people from working, not a good thing at a time when the economy’s still struggling.” Representative Trey Gowdy said, “What the liberals and the Democrats want you to believe is, ‘Well, but you’ll have time to write poetry.’ Well, that’s great until you try and buy your grandkid a birthday present or you try and pay the heating bill.”

You might read that and wonder, “Just how dumb do they think people are?” If you’re, say, a 63-year-old who has enough savings to retire but doesn’t want to wait until you’re 65 and can get Medicare, the fact that you can now buy private insurance doesn’t mean you’ve failed to “get on the ladder of life.” Nobody is going to say, “Wait—I can buy insurance now, even though I once had cancer? Woo-hoo, no more work for me, ever!”

But to be honest, I’m a little torn about how far to go in interpreting the arguments Republicans are making. On one hand, it’s obvious that they are saying what they are because they feel obligated to take any and every opportunity to cry that Obamacare is destroying America, and they’ll do that no matter what the facts are. If the CBO report had said that the ACA had no effect at all on job lock, they’d probably be arguing exactly the opposite of what they are now, that it was diminishing Americans’ freedom by keeping them in jobs they hate.

On the other hand, it’s hard to say that at the moment they’re not being candid about what they really believe. Job lock never really bothered them before, and I think that’s because it’s a case of the market diminishing people’s freedom. Conservatives get very upset when the government diminishes freedom, but if the market does it, well them’s the breaks. If you got screwed by market forces, then that just means you’re a loser, and they’re the party of winners. David Atkins may go a little far here, but he’s right to point to a basic difference in how people of different ideologies view what it means to be human:

It is not an inaccurate or extreme statement to declare that ideological Republicans do not understand what it means to be human. They view human beings as economic units to be plugged at their lowest possible price into a maximally efficient market that provides the greatest possible returns on investment to the wealthy few, with any resulting human resentment and misery dulled by humility before a pleasure-fearing angry God promising rewards to the obedient in the hereafter. It is a dark, meager, shriveled and cramped vision of humanity.

I’d modify that to say that while most conservatives may view lives devoted to non-money-making endeavors as frivolous, it’s only when certain people take advantage of the kind of freedom we’re talking about that they get genuinely perturbed. They aren’t campaigning for a higher estate tax so the Paris Hiltons of the world will be forced to get jobs and contribute meaningfully to society instead of laying about all day spending their forebears’ money. It’s the idea of someone of modest means having the ability to organize their lives to work less that they find morally intolerable.

But conservatives should be quite satisfied with the way the American economy is organized, particularly compared to our peer nations. Unions are a desiccated husk of what they once were, leaving workers with little or no power. Wages are stagnant and benefits are shrinking, while corporate profits and the share of wealth held by those at the top are at or near all-time highs. Our safety net is, by international standards, quite meager. The United States is the only advanced industrialized democracy that does not mandate by law that everyone get paid vacation. If you’re lucky enough to have it, chances are you get two weeks at most. The European Union, by contrast, requires four weeks of paid vacation for all workers, and some countries in Europe go beyond even that.

In other words, this is the economy conservatives built. And yet when just one area of uncertainty is removed for ordinary people—the fear that you’ll lose your health coverage if you leave your job or work fewer hours—they begin delivering lectures to the lesser folk about “the dignity of work.” This is from a bunch of rich white guys who spend their days hobnobbing with other rich white guys. What I’d suggest is that they ask the people who clean their toilets about how much dignity and fulfillment they derive from their work, and then ask them whether they’d feel less dignified if they knew they could leave their jobs and still get health coverage. For a group of people who spend so much time talking about “economic freedom,” conservatives seem awfully hesitant to let too many people taste it.

In the real economy—not the economy of a Republican congressman’s imagining, where the only perspective that matters is that of the guy in the corner office, but the real economy—bosses are sometimes kind and sometimes beastly, compensation is sometimes fair and sometimes stingy, and for most people, work is the thing you do so you can carve out a little bit of time to do the things you’d rather be doing. It would be a wonderful world if everyone drew limitless fulfillment, engagement, and purpose from their work. But this is not that world.

Unfortunately, government can’t make everyone love their jobs so much they leap out of bed in the morning. But what it can do is stop the gross injustices, keep the ruthless from harming the helpless, soften the market’s cruelties and give people at least a chance to reach the kind of lives they want. Is that too much to ask?

 

By: Paul Waldman, Contributing Editor, The American Prospect, February 10, 2014

February 11, 2014 Posted by | Affordable Care Act, Economic Inequality | , , , , , , , | Leave a comment

“Writing Off The Unemployed”: Republican Imperviousness To Evidence Goes Along With A Stunning Lack Of Compassion

Back in 1987 my Princeton colleague Alan Blinder published a very good book titled “Hard Heads, Soft Hearts.” It was, as you might guess, a call for tough-minded but compassionate economic policy. Unfortunately, what we actually got — especially, although not only, from Republicans — was the opposite. And it’s difficult to find a better example of the hardhearted, softheaded nature of today’s G.O.P. than what happened last week, as Senate Republicans once again used the filibuster to block aid to the long-term unemployed.

What do we know about long-term unemployment in America?

First, it’s still at near-record levels. Historically, the long-term unemployed — those out of work for 27 weeks or more — have usually been between 10 and 20 percent of total unemployment. Today the number is 35.8 percent. Yet extended unemployment benefits, which went into effect in 2008, have now been allowed to lapse. As a result, few of the long-term unemployed are receiving any kind of support.

Second, if you think the typical long-term unemployed American is one of Those People — nonwhite, poorly educated, etc. — you’re wrong, according to research by the Urban Institute’s Josh Mitchell. Half of the long-term unemployed are non-Hispanic whites. College graduates are less likely to lose their jobs than workers with less education, but once they do they are actually a bit more likely than others to join the ranks of the long-term unemployed. And workers over 45 are especially likely to spend a long time unemployed.

Third, in a weak job market long-term unemployment tends to be self-perpetuating, because employers in effect discriminate against the jobless. Many people have suspected that this was the case, and last year Rand Ghayad of Northeastern University provided a dramatic confirmation. He sent out thousands of fictitious résumés in response to job ads, and found that potential employers were drastically less likely to respond if the fictitious applicant had been out of work more than six months, even if he or she was better qualified than other applicants.

What all of this suggests is that the long-term unemployed are mainly victims of circumstances — ordinary American workers who had the bad luck to lose their jobs (which can happen to anyone) at a time of extraordinary labor market weakness, with three times as many people seeking jobs as there are job openings. Once that happened, the very fact of their unemployment made it very hard to find a new job.

So how can politicians justify cutting off modest financial aid to their unlucky fellow citizens?

Some Republicans justified last week’s filibuster with the tired old argument that we can’t afford to increase the deficit. Actually, Democrats paired the benefits extension with measures to increase tax receipts. But in any case this is a bizarre objection at a time when federal deficits are not just falling, but clearly falling too fast, holding back economic recovery.

For the most part, however, Republicans justify refusal to help the unemployed by asserting that we have so much long-term unemployment because people aren’t trying hard enough to find jobs, and that extended benefits are part of the reason for that lack of effort.

People who say things like this — people like, for example, Senator Rand Paul — probably imagine that they’re being tough-minded and realistic. In fact, however, they’re peddling a fantasy at odds with all the evidence. For example: if unemployment is high because people are unwilling to work, reducing the supply of labor, why aren’t wages going up?

But evidence has a well-known liberal bias. The more their economic doctrine fails — remember how the Fed’s actions were supposed to produce runaway inflation? — the more fiercely conservatives cling to that doctrine. More than five years after a financial crisis plunged the Western world into what looks increasingly like a quasi-permanent slump, making nonsense of free-market orthodoxy, it’s hard to find a leading Republican who has changed his or her mind on, well, anything.

And this imperviousness to evidence goes along with a stunning lack of compassion.

If you follow debates over unemployment, it’s striking how hard it is to find anyone on the Republican side even hinting at sympathy for the long-term jobless. Being unemployed is always presented as a choice, as something that only happens to losers who don’t really want to work. Indeed, one often gets the sense that contempt for the unemployed comes first, that the supposed justifications for tough policies are after-the-fact rationalizations.

The result is that millions of Americans have in effect been written off — rejected by potential employers, abandoned by politicians whose fuzzy-mindedness is matched only by the hardness of their hearts.

 

By: Paul Krugman, Op-Ed Columnist, The New York Times, February 9, 2014

February 10, 2014 Posted by | Economic Policy, Republicans | , , , , , , , | 2 Comments

“The Silence Of The Austerians”: Here’s Why 2014 Could Be The Year America Finally Ditches its Inane Deficit Obsession

The year 2013 will be seen as a year of crushing intellectual defeat for advocates of fiscal austerity. There were many smaller victories, but this big one came in April. Researchers at the University of Massachusetts examined the Austerian ur-paper, “Growth in a Time of Debt,” by Carmen Reinhart and Ken Rogoff, which said that countries whose debt-to-GDP ratio reaches 90 percent experience dramatically slower growth. The UMass folks found not only dodgy statistics and backwards causation, but a goof in the paper’s Excel spreadsheet. The causation and statistics errors were more serious, but the fact that elites around the globe had gleefully embraced something with a flub any office temp could understand was horribly embarrassing.

It was an intellectual rout that badly wrong-footed the Austerians, who have since been notably half-hearted in the face of a resurgent left now campaigning on economic justice. This includes, for example, increasing Social Security benefits, which was unthinkable two years ago, when the fight to stop benefits from being cut was nearly lost.

The question for 2014, then, will be whether this triumph can be consolidated and expanded into the policy sphere. Because despite the intellectual collapse, Austerian assumptions and reasoning still dominate United States policy, which is undertaking fiscal consolidation at a pace not seen since the WWII demobilization. If the current Austerian death grip on the framework of policy negotiation can be broken, there might be a chance.

The answer to this question turns on how one views intellectual debate. Given the history of the last few years, one could be forgiven for thinking it’s pointless. As the Polish economist Michal Kalecki demonstrated brilliantly, there are powerful cultural and class-based reasons for both political and business elites to favor austerity now.

We see this today, as Steve Randy Waldman has demonstrated, in the blatant double standards applied to austerity as compared to inequality or raising the minimum wage. Consider a recent paper by the liberal economist Jared Bernstein, which while outlining much excellent evidence about the economic harm of inequality, is stuffed with unnecessary hedging and hesitation. The Reinhart and Rogoff paper, by contrast, was weak even without knowing about the Excel and stats errors (as Paul Krugman, among others, observed at the time), but elites nearly tripped over their own feet seizing on it anyway. Their bogus “90 percent” conclusion was stated as economic fact by everyone from Paul Ryan to the Washington Post editorial board.

However, biased reasoning is different than no reasoning at all. Seizing on a fig leaf paper fulfills a deep psychological need. Current elites may be largely greedy, corrupt hypocrites, but the cultural credibility of science is such that what amounts to outright class warfare must have an “evidence-based” patina. It’s far too gauche to simply ram through one’s favored policies because you want all the money or to kick the poor.

Therefore, fiscal policy in 2014 and 2015 will hinge on whether the Austerian coalition can be split (assuming, as is probable, that progressive Democrats don’t sweep the 2014 midterms).

Roughly speaking, we’re talking about the center and the right, and there are good reasons to suppose that neither will be brought around. For the center, it takes an intellectual defeat roughly akin to the Battle of Trafalgar to get them to grudgingly abandon austerity. (And if some hack economist churns out another pro-austerity paper, they will probably grab it eagerly.) Meanwhile, “straight” reporters have been culturally conditioned to code deficit reduction as a non-ideological good thing, so even very recent straight reporting still contains buried Austerian assumptions.

And on the right, things look especially hopeless. Denial and motivated reasoning are so epidemic that even Mitt Romney believed the “unskewed” polls before the 2012 election. Ivory tower arguments alone are useless here.

However, all hope is not lost. The key is to change what is considered acceptable for budgetary negotiations. Right now, they all assume that any new spending must be “offset” by cuts elsewhere. That aversion to deficit spending is 100% Austerian.

So while Republicans are largely immune to evidence, it’s also true they don’t actually care about the deficit in and of itself. They favor reduced taxes on the rich, and cutting social insurance. What’s more, conservative reformists at places like National Affairs have gotten louder and bolder in their advocacy of new thinking, even including infrastructure spending.

So if the center, especially including President Obama, can be persuaded to drop their deficit obsession (and again, it’s hardly possible to overstate how badly this debate has been lost), we could trade tax cuts for some austerity relief, like re-extending unemployment benefits and food stamps. And, it’s important to note, both spending increases and tax cuts count as austerity relief. Tax cuts, especially on the rich, aren’t very good stimulus, but they still put money into people’s pockets.

But the main point is to shift ground for negotiation. This strategy of “tax cuts for more spending” has been suggested many times in the past few years and gone nowhere. But before that, it has been the basis for many successful bipartisan deals, including expanding Medicaid in the 80s and the CHIP program in the 90s.

So while the deck is stacked against the anti-Austerians, continuing the intellectual battle is by no account useless. It’s highly possible to influence even a crooked debate.

 

By: Ryan Cooper, The New Republic, February 5, 2014

February 10, 2014 Posted by | Austerity, Deficits | , , , , , , , | Leave a comment

“The GOP’s Immigration Conundrum”: A Perils-Of-Pauline Soap Opera

House Republicans’ latest revolt against immigration reform spells potential trouble for the party’s 2016 presidential candidates. The last thing the GOP needs in 2016 is another primary season marked by debate and dissension over the fraught issue.

The party’s handling of immigration-reform legislation since President Obama won reelection with 71 percent of the Hispanic vote reprises a decades-long pattern that has weakened the GOP in the competition for Hispanic votes. On the one hand, there is a recognition that the party needs to do more to attract Hispanic votes. On the other, there are repeated actions, both individual and collective, that send the opposite signal.

That is what has happened over the past few weeks. At one point, House leaders, led by Speaker John A. Boehner (R-Ohio), issued a list of principles for reform legislation that included a path to legal status but not to citizenship. That suggested a collective determination to pass something this year. Then, after a backlash from the outside groups that have long been Boehner’s nemeses, the speaker did an abrupt about-face, saying that a lack of trust that Obama would enforce the law made passage this year a heavy lift.

Perhaps the speaker is playing an exceedingly clever game to keep everyone guessing, a perils-of-Pauline soap opera in which he has already sketched out the scenario that ends with the passage of some notable piece of legislation this year. After all, he’s given every indication that immigration reform is something he wants to do, something he believes is good for the country and good for his party.

More likely, he is reflecting the views of the party’s most conservative members and those outside groups, who in turn reflect the views of many rank-and-file Republicans. Comprehensive reform, including a path to citizenship, enjoys majority support nationally. But conservative Republicans continue to oppose a bill that includes any path to citizenship.

Some Republicans are suggesting that they should not clutter up the midterm elections with an issue that divides their party and instead try to energize their voters by focusing on the issue that most unites Republicans, Obama’s Affordable Care Act. Many House Republicans hate the bipartisan bill that was passed by the Senate last year. If the GOP could win control of that chamber, it might be able to write legislation more to its liking and force the president to accept it.

There is no question that the politics of this are difficult for Boehner. Could he wait to push forward this year until it would be too late for conservative challengers to mount primary campaigns against incumbent House Republicans? Will there be a better opportunity next year? Will Republicans trust Obama more next year? What is the maximum Boehner can get now as opposed to then? Would support for legal status, rather than a path to citizenship, be enough to position Republicans better to start courting Hispanics on other issues?

But another question that Republicans should be asking is: What are the consequences of inaction? Can they afford another presidential nomination contest in which immigration reform plays a central role, as it did in 2012? There is debate inside the party over how much immigration hurt Mitt Romney in the general election. But no one is arguing that it helped him, and few would say a fresh debate in 2016 would be a net plus for their nominee, unless that nominee had run forcefully in favor of comprehensive reform.

A year ago, it looked as if most of the likely GOP presidential candidates in 2016 would be advocates of comprehensive reform. The task force created by Republican National Committee Chairman Reince Priebus — a group that was weighted toward the establishment wing of the party — recommended support for such a measure. Sen. Marco Rubio (R-Fla.) took a lead role in helping produce a bipartisan Senate bill. Others who are considering running in 2016 made statements indicating at least some level of support for comprehensive legislation.

Today, that support is far more muted, if it exists at all. The conservative intelligentsia is split on what to do. The base is clearly opposed to comprehensive reform. Given the prospective field of candidates for 2016, it’s likely that those running will include outright opponents of a path to citizenship. Whoever becomes the nominee will risk having been pushed further to the right than is politically safe for a general election.

Romney said after the 2012 election that he had recognized the potentially debilitating impact an intraparty debate on immigration could have on the nominating process. He had hoped there was a way for the party to come together on some set of principles to at least prevent the issue from being front-and-center during the primaries, he said, but that didn’t happen. Romney then mishandled immigration during the GOP primaries, as his advisers later admitted (though he had a different, somewhat contrarian view of that).

Romney’s advisers discovered that, whatever problems were caused by the former governor’s talk of self-deportation and the hard line he took on immigration reform, their biggest obstacle to reaching Hispanic voters in the general election was health care. Hispanics strongly supported Obama’s health-care initiative.

That points to another problem. Republicans have long argued that they can appeal to Hispanics on issues other than immigration. So far, they have yet to prove it. Appeals to the patriotism of the Hispanic community have not worked consistently. Appeals to Hispanic small-business owners haven’t done it. Efforts to reach socially conservative Hispanics on issues such as abortion have produced few dividends. The party is still looking for an effective message for Hispanics.

Immigration remains a gateway issue. Passage of immigration reform won’t necessarily win the next presidential nominee significantly more Hispanic votes. But its absence as a divisive issue in the nomination contest would give Republican candidates an opportunity to talk to Hispanic voters about new ideas or issues.

Republicans already face significant problems winning the Rocky Mountain states in a presidential election. Growing Hispanic populations in Nevada and New Mexico have made those two states major challenges for the party. Colorado is still competitive but could become more difficult for the GOP in future elections. Arizona, which has remained in the Republican column, could become a competitive state because of Hispanic population growth.

Perhaps an immigration reform bill will be enacted before the presidential primaries begin in 2016. What Boehner did this week in bowing to pressures from the right was to underscore that Republicans continue to think more like a congressional party than a presidential party. It will be interesting to see whether any of the prospective presidential candidates is ready to challenge that orthodoxy.

 

By: Dan Baltz, Opinion Writer, The Washington Post, February 8, 2014

February 9, 2014 Posted by | GOP, Immigration Reform | , , , , , , , | 1 Comment