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“Defense Hawks Swoop”: House Republicans Pushing Back Strongly Against John Boehner On Defense Cuts

John Boehner should probably stop doing interviews.

His reported talk with the Wall Street Journal‘s Stephen Moore that was published Monday under the provocative title “The Education of John Boehner” (an illusion, I am confident, to William Greider’s famous “The Education of David Stockman” piece in late 1981 that nearly got Stockman fired as Reagan’s budget director) is continuing to cause him problems. Intended, presumably, to convey a sadder-but-wiser-and-tougher sense of his negotiating posture on fiscal issues after the “fiscal cliff” deal, the story got lots of attention for Boehner’s assertion that “the tax issue is resolved,” and some for his depiction of the stark differences between himself and the president on every basic fiscal and economic issue.

But the part of the story that’s biting him in the butt right now involves the spending sequestration that was recently delayed for two months, and that had been widely considered a leverage point for the White House with Republicans, given their frantic desire to spare the Pentagon any cuts. The Hill‘s Russell Berman and Jeremy Herb explain:

In his interview with The Wall Street Journal, Boehner said that during the late stages of the fiscal-cliff negotiations, it was the White House — and not Republican leaders — that demanded a delay in the $109 billion in scheduled 2013 cuts evenly split between defense and domestic discretionary programs. Senate Republican Leader Mitch McConnell (Ky.) and Vice President Biden ultimately agreed to push the sequester back by two months, partially offsetting it with other spending cuts and leaving $85 billion in remaining 2013 cuts in place.

The Speaker suggested the sequester was a stronger leverage point for Republicans than the upcoming deadline to raise the debt ceiling, for which he is insisting on spending cuts and reforms that exceed the amount in new borrowing authority for the Treasury. Therefore, the willingness of Republicans to allow the sequester to take effect is “as much leverage as we’re going to get,” Boehner told the Journal.

Negotiating 101 tells you that you don’t make that kind of assertion unless you’ve got your ducks in a row and know you won’t be undercut by the people you claim to be speaking for. It seems Boehner did not do any of those things:

House Republican defense hawks are pushing back strongly against Speaker John Boehner’s (R-Ohio) claim that he has GOP support to allow steep automatic budget cuts to take effect if President Obama does not agree to replace them with other reductions….

Not so fast, two defense-minded House Republicans told The Hill.

“I don’t support that,” said Rep. Duncan Hunter (R-Calif.), a member of the Armed Services Committee whose district includes one of the nation’s largest military installations. “You get into dangerous territory when you talk about using national security as a bargaining chip with the president…”

One defense-minded Republican lawmaker said Boehner’s position would amount to a broken promise to his conference.

“In order to get the Republican Conference to pass the debt-limit increase last time, he promised them sequestration would not go in place,” the Republican House member said, speaking on the condition of anonymity. “To be using sequestration and these defense cuts in the next debt-limit talks certainly is pretty bad déjà vu for the Republican Conference.”

So all Boehner really accomplished in his boast to Stephen Moore was supplying further evidence that he had it backwards: Obama has the leverage on the defense sequester, and Boehner is just blustering.

You know, there’s a natural tendency to think that people who have risen to the top of any profession are reasonably bright, and are advised by dazzlingly bright folk who truly earn their bloated salaries as strategic wizards. Time and again, that turns out not to be so true.

BY: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, January 10, 2013

January 11, 2013 Posted by | Budget | , , , , , , , , | Leave a comment

“The Big Fail”: Too Many Republicans Responsible For Economic Failure Retain Power And Refuse To Learn From Experience

It’s that time again: the annual meeting of the American Economic Association and affiliates, a sort of medieval fair that serves as a marketplace for bodies (newly minted Ph.D.’s in search of jobs), books and ideas. And this year, as in past meetings, there is one theme dominating discussion: the ongoing economic crisis.

This isn’t how things were supposed to be. If you had polled the economists attending this meeting three years ago, most of them would surely have predicted that by now we’d be talking about how the great slump ended, not why it still continues.

So what went wrong? The answer, mainly, is the triumph of bad ideas.

It’s tempting to argue that the economic failures of recent years prove that economists don’t have the answers. But the truth is actually worse: in reality, standard economics offered good answers, but political leaders — and all too many economists — chose to forget or ignore what they should have known.

The story, at this point, is fairly straightforward. The financial crisis led, through several channels, to a sharp fall in private spending: residential investment plunged as the housing bubble burst; consumers began saving more as the illusory wealth created by the bubble vanished, while the mortgage debt remained. And this fall in private spending led, inevitably, to a global recession.

For an economy is not like a household. A family can decide to spend less and try to earn more. But in the economy as a whole, spending and earning go together: my spending is your income; your spending is my income. If everyone tries to slash spending at the same time, incomes will fall — and unemployment will soar.

So what can be done? A smaller financial shock, like the dot-com bust at the end of the 1990s, can be met by cutting interest rates. But the crisis of 2008 was far bigger, and even cutting rates all the way to zero wasn’t nearly enough.

At that point governments needed to step in, spending to support their economies while the private sector regained its balance. And to some extent that did happen: revenue dropped sharply in the slump, but spending actually rose as programs like unemployment insurance expanded and temporary economic stimulus went into effect. Budget deficits rose, but this was actually a good thing, probably the most important reason we didn’t have a full replay of the Great Depression.

But it all went wrong in 2010. The crisis in Greece was taken, wrongly, as a sign that all governments had better slash spending and deficits right away. Austerity became the order of the day, and supposed experts who should have known better cheered the process on, while the warnings of some (but not enough) economists that austerity would derail recovery were ignored. For example, the president of the European Central Bank confidently asserted that “the idea that austerity measures could trigger stagnation is incorrect.”

Well, someone was incorrect, all right.

Of the papers presented at this meeting, probably the biggest flash came from one by Olivier Blanchard and Daniel Leigh of the International Monetary Fund. Formally, the paper represents the views only of the authors; but Mr. Blanchard, the I.M.F.’s chief economist, isn’t an ordinary researcher, and the paper has been widely taken as a sign that the fund has had a major rethinking of economic policy.

For what the paper concludes is not just that austerity has a depressing effect on weak economies, but that the adverse effect is much stronger than previously believed. The premature turn to austerity, it turns out, was a terrible mistake.

I’ve seen some reporting describing the paper as an admission from the I.M.F. that it doesn’t know what it’s doing. That misses the point; the fund was actually less enthusiastic about austerity than other major players. To the extent that it says it was wrong, it’s also saying that everyone else (except those skeptical economists) was even more wrong. And it deserves credit for being willing to rethink its position in the light of evidence.

The really bad news is how few other players are doing the same. European leaders, having created Depression-level suffering in debtor countries without restoring financial confidence, still insist that the answer is even more pain. The current British government, which killed a promising recovery by turning to austerity, completely refuses to consider the possibility that it made a mistake.

And here in America, Republicans insist that they’ll use a confrontation over the debt ceiling — a deeply illegitimate action in itself — to demand spending cuts that would drive us back into recession.

The truth is that we’ve just experienced a colossal failure of economic policy — and far too many of those responsible for that failure both retain power and refuse to learn from experience.

By: Paul Krugman, Op-Ed Columnist, The New York Times, January 6, 2013

January 10, 2013 Posted by | Debt Crisis, Economic Recovery | , , , , , , , | Leave a comment

“Congress And Cockroaches: A Rapidly Descending Congress Hasn’t Quite Hit Bottom Just Yet, But They’re Working On It

Think the “fiscal cliff” shenanigans and the upcoming debt limit fiasco have damaged the already battered reputation of Congress? If so, looks like you are right. PPP has a new survey out showing Congress’ favorability rating is down to single digits: a booming 9%, with 85% registering negative impressions.

Being playful folk (particularly for pollsters), the PPP staff decided to offer respondents a choice of preferances between Congress and various and sundry other highly unsavory people and things—and the lawmakers didn’t do very well:

It’s gross to have lice but at least they can be removed in a way that given the recent reelection rates members of Congress evidently can’t: Lice 67 Congress 19

Brussel sprouts may have been disgusting as a kid, but evidently they’re now a lot less disgusting than Congress: Brussel Sprouts 69 Congress 23

The NFL replacement refs may have screwed everything up, but voters think Congress is screwing everything up even worse: Replacement Refs 56 Congressmen 29 (the breakdown among Packers fans might be a little bit different).

Colonoscopies are not a terribly pleasant experience but at least they have some redeeming value that most voters aren’t seeing in Congress: Colonoscopies 58 Congress 31

And you can make the same point about root canals: Root Canals 56 Congress 32

It goes on and on, with used car salesmen, traffic jams, France, carnies, Nickelback, Genghis Khan, DC pundits, Donald Trump, and yes, cockroaches all beating Congress in public approbation. But there’s a slim silver lining:

The news isn’t all bad for Congress:

By relatively close margins it beats out Lindsey Lohan (45/41), playground bullies (43/38), and telemarketers (45/35). And it posts wider margins over the Kardashians (49/36), John Edwards (45/29), lobbyists (48/30), Fidel Castro (54/32), Gonorrhea (53/28), Ebola (53/25), Communism (57/23), North Korea (61/26), and meth labs (60/21).

So Congress hasn’t quite hit bottom just yet.

 

By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, January 8, 2013

January 9, 2013 Posted by | Congress | , , , , , , | 1 Comment

“Tea Party Absolutism”: The High Cost Of Hating Government Levies An Enormous Unnecessary Cost On Everyone Else

The tourniquet applied by the outgoing Congress to the economy allows a two-month breather before we are consumed by the next deadline. The president and his party can allow themselves a brief moment of celebration for imposing higher taxes on the richest Americans, but the next stage in fixing the nation’s fiscal problems may not be as easy. By the end of February, lawmakers must find enough cuts in public spending to allow the debt ceiling to be raised. Two more months of uncertainty will prevent businesses and consumers from making spending decisions that would bolster the economic recovery.

The devil is not so much in the detail of the arguments to come as the big picture that frames the debilitating running debate. While the difference between the sides is ostensibly over taxes and public spending and borrowing, the more profound division is over where government should begin and end. For many of the Republican Party’s Tea Party insurgents, the choice is even more fundamental: whether there should be a government at all. Their unbending position, demanding an ever-diminishing role for the federal government, has levied an enormous unnecessary cost on everyone else.

Since Republicans regained control of the House in the 2010 mid-terms, when the Tea Party tide was in full force, they have attempted to freeze the size of government, coincidentally putting a brake on economic recovery. They have vetoed attempts at further economic stimulus, encouraged America’s economy to be downgraded by the ratings agencies by threatening not to extend the debt ceiling, and tried to veto any and every tax increase in the fiscal cliff talks. Their aim is to shrink government by starving it of funds. Such uncompromising absolutism has led to the dampening of business confidence and investment that would have created jobs.

It is not just the economy that has suffered from the absolute positions held by the anti-government rump in the GOP. Their insistence that the Founding Fathers intended us to be allowed to carry guns of any sort, including the rapid-fire assault weapon that killed 20 children and six adults in Newtown, Connecticut, last month, continues to hamper attempts to curb the nation’s murderous gun violence. Ghosts from the eighteenth century are preying on our school-children, abetted by those who believe that compromise on amending our gun laws is surrendering to the forces of big government. Such unbending absolutism costs human lives.

Similarly, suspicion of government is behind the growth in home schooling, that narrows the education of children, deprives them of a sense of community, and diminishes their social skills. It came as little surprise to read reports that the Newtown shooter was kept home from school by his mother, a “survivalist” or “Doomsday Prepper”, who stockpiled food and guns because she expected an imminent economic apocalypse. Such paranoia about the role of government is a recurring theme in our society’s most appalling massacres, from the bombing of the Federal Government Building in Oklahoma City in 1995 by the anti-government militiaman Timothy McVeigh, who killed 168, including 19 children, to the FBI siege of the anti-government Branch Davidian sect in Waco, Texas, in 1993, that left 76 dead.

Hostility to government also ensures that health care is unnecessarily expensive. The average cost of American health care is $8,233 per person per year, the most expensive in the developed world. In comparable Western countries such as France, which has a private health insurance mandate administered by the state, it is $3,974. In Britain, which for 65 years has enjoyed a taxation-funded national health system, it is $3,433. As much as Americans may prefer to believe that they have a health care system second to none, there is little discernible difference between the quality of health care provided, nor the efficacy of the medicine administered in the three countries, while dealing with the health insurance bureaucracy here is considerably more time-wasting, expensive, and irritating.

Changes in demography, with Americans living longer and using more medical resources to enjoy a tolerable quality of life, mean that health care costs will continue to rise unless reforms are made. The easiest way to reduce American health care costs would be for the federal government to provide a “single payer” alternative to compete with the near-monopolistic private health insurance companies. But such a system is considered an abomination by absolutists who demand that the federal government should keep out of healthcare. The harsh alternative is to cut the amount of care the system provides to the elderly. Again, an unbending attitude to the government’s role and responsibilities comes at an exorbitant cost.

Conservative theologians have devoted themselves to explaining why government interference is a bad thing. For Milton Friedman, the American system of government was so monetized from the moment the Republic was founded, and so open to corruption, that he always advocated small government – at least in the United States. For the Austrian thinker Friedrich Hayek, writing in his influential masterwork The Road to Serfdom, a burgeoning state could lead to tyranny. To be fair to Hayek, who wrote his topical tract as World War II was drawing to a close, he was principally concerned that free enterprise might continue to be stifled by the imperatives of the wartime command economy once peace was declared. In The Road to Serfdom, in a passage often ignored by contemporary conservatives, he insisted that all governments should provide a generous safety net for the needy, homes for the homeless, and universal health care.

Tea Party members owe less to conservative thinkers such as Friedman and Hayek than to uncompromising proponents of the untrammelled free market such as the libertarians Ayn Rand and Ron Paul. When the new Congress comes to head off another fiscal cliff crisis at the end of next month, it will take courage from the Republican leadership to keep their extreme wing in check. If they fail to do so and they demand too deep cuts to public spending too quickly, they will not only cause the American economy to return to recession but may find that the middle ground voters who decide elections will add together the vast cost of their allies’ absolutist intransigence and keep them in opposition forever.

 

By: Nicholas Wapshott, The National Memo (originally appeared at Reuters.com), January 7, 2013

January 8, 2013 Posted by | Politics, Teaparty | , , , , , , , | 1 Comment

“Eric Cantor, Cornered”: Another Of The People Who Needs To Be Replaced

Ever since Eric Cantor became No. 2 to John Boehner four years ago, the conventional wisdom in Washington has been that the hyperambitious Cantor would knife his nominal boss in the back as soon as he had the chance. “You know Cantor’s trying to get your job,” President Obama tauntingly told the House speaker during their debt-ceiling talks in 2011. And yet, despite obvious tensions between Cantor and Boehner, the two Republicans always managed to strike a unified public front.

Until last week: On New Year’s Day, Boehner cast his lot with 172 Democrats and only 84 other members of his party and voted for the tax-­hiking legislation that ultimately ended the “fiscal cliff” drama; Cantor, saying he couldn’t abide by the bill’s lack of spending cuts, voted against it. It was a shockingly brazen split, and some in Washington believed that with Boehner up for reelection as speaker two days later, it marked the opening volley of the long-awaited Cantor coup. Or as Breitbart.com put it in a headline: “ERIC CANTOR MAKES FIRST MOVE TO UNSEAT BOEHNER IN ‘FISCAL CLIFF’ KABUKI THEATER.” And then … nothing happened. “All is not well in the palace,” says one GOP member, “but it’s clear the prince is not trying to poison the king’s chalice.” Now Cantor loyalists worry that their guy, rather than seizing more power, has shot himself in the foot.

It’s a misconception that Cantor is reckless. Although he became the No. 2 House Republican at the tender age of 45 and clearly has designs on the top job, he is playing a long game. “He wants Boehner to have a successful speakership, which would maintain a Republican majority and give Eric the opportunity to become speaker down the road,” a House Republican close to Cantor explained to me in 2011, when talk of a Cantor coup was especially loud. “And Eric is young enough to wait for that.”

The problem for Cantor is that the longer he has waited, the more he has become identified in his fellow Republicans’ eyes with Boehner, who’s on his way to going down as the least effective speaker in modern political history. During the 2011 debt-ceiling negotiations, when Cantor privately signaled that he wouldn’t abide by any plan negotiated with Obama that raised revenues, he was a hero to the GOP rank and file and a clear alternative to Boehner. But during the fiscal-cliff talks, Cantor voiced strong public support for Boehner’s negotiating strategy while staying largely silent inside the House. When Cantor ultimately voted against the compromise legislation, some fellow Republican members, including those who voted with him, viewed it as a desperate stab at shoring up his future prospects.

“There was no predicate for his ‘no’ vote,” concedes one Cantor friend. “There was no setup to it.” Within the GOP caucus, there are solid supporters of the Virginia congressman, another bloc that would never get behind him for speaker, and a swing group in the middle, and it’s that last camp that is most put off by his move on the fiscal-cliff bill. Indeed, even if Cantor had tried to overthrow Boehner last Thursday, he wouldn’t have had the votes.

Cantor allies fear that by doing too little to differentiate himself from Boehner within the caucus since the fireworks of 2011, he may have missed his moment. “Eric has almost become Boehner Lite” to other GOP members, says the supporter. “The longer that goes on, it becomes increasingly likely that he doesn’t become the heir apparent. Instead, he becomes part of the people who need to be replaced once Boehner decides to walk off into the sunset.”

 

By: Jason Zengerle, New York Magazine, January 4, 2012

January 7, 2013 Posted by | Republicans | , , , , , , | 1 Comment