“Polarized, Inefficient and Unproductive”: Congressional Brinkmanship Threatens Economic Recovery
Congress’s job approval rating has slowly ticked up over the past six months—reaching a whopping 16 percent in the first half of July, with 78 percent disapproving. However, even these dismal numbers may be giving Congress too much credit, especially if legislators don’t act soon to avoid the looming fiscal cliff.
The scenario is eerily reminiscent of last spring, when political deadlock over the federal budget threatened a government shutdown before an 11th-hour deal was struck. Such political wrangling risked the loss of 800,000 jobs and the curtailment of crucial public services such as mortgage, passport, and loan processing—not to mention a massive disruption of a fragile economic recovery.
And another similar scenario just a few months later was the battle over the federal debt ceiling, gambling the possibility of another government shutdown. The haphazard deal reached during that policy fight, which failed to produce long-term practical solutions, laid the groundwork for what the country faces today.
The risks of the impending fiscal cliff are similar, if not graver. If current fiscal policy is allowed to take effect, the United States economy will simultaneously experience across-the-board income tax hikes and deep, automatic spending cuts of billions of dollars at the end of this year. According to the nonpartisan Congressional Budget Office, these policies combined will contribute to lower incomes and higher unemployment numbers, slowing economic growth in 2013 to a mere 0.5 percent—and sending America into a double-dip recession.
The general assumption is that lawmakers will not let it get to that point; spending measures will be passed and tax cuts will be extended—though how much and for whom remains undecided. We all need to be asking when this is going to happen.
The 112th Congress has been called the most polarized, inefficient, and unproductive Congress in the 236-year history of the United States; and if they’re trying to fight that image, it sure is hard to tell. Legislators have shown little political will to act before the November presidential elections, dangerously close to the December 31 deadline when the first of a series of tax cuts will expire.
Such political brinkmanship is detrimental to the business environment and to a weak economic recovery. Small businesses are particularly hard hit by the uncertain climate created by Washington, and the threat of substantial tax increases has done nothing to ease fears. According to a Chamber of Commerce poll in July, over half of small business owners cite economic uncertainty as their top concern. Only 20 percent of those surveyed expected to hire in 2013.
This is bad news—with real implications for American prosperity. Small businesses are the key to economic recovery, spurring the majority of job creation. But to hire, business owners need the assurance of a stable investment environment in which they can secure returns. Regardless of whether America falls off the fiscal cliff, Congress’s behavior is already having detrimental effects on business and employment expectations. Amid discouraging jobs and industry reports, this political game is not something we can afford.
Lawmakers must realize that their gridlocked partisanship is hurting a nation already struggling. The 112th Congress has five months left in its term. Is it too naïve to hope things might change?
By: Steve Zelnak, U. S. News and World Report, August 3, 2012
” Washington’s Most Beautiful Demagogue”: John Boehner Would Rather Not Deal With Michele Bachmann
Rep. Michele Bachmann, Washington’s Most Beautiful Demagogue, has an enviable seat on the House Intelligence Committee, because, after the Republicans took control of the House, Rep. John Boehner thought that would be a good idea that wouldn’t end up embarrassing him and the Republican Party and the nation as a whole. Who could’ve predicted that Bachmann would use the position to advance dingbat conspiracy theories, seek press attention with wild accusations, and generally continue acting as Michele Bachmann has always acted?
Bachmann actually got more pushback than she probably expected when she accused Hillary Clinton adviser Huma Abedin of being in league with the nefarious Muslim Brotherhood. John Boehner said “accusations like this being thrown around are pretty dangerous,” which seems to suggest that the person leveling the accusations shouldn’t have a privileged position related to national security and intelligence. Bachmann is reportedly worried that her committee assignment is in jeopardy.
Here’s the problem, though: The more extreme House Republicans don’t actually have any respect for Majority Leader Boehner, who always wants them to do lame non-conservative stuff like “raise the debt ceiling after winning stunning concessions on entitlements from President Obama and the Democrats.” Michele Bachmann, who has a huge campaign war chest and a national following, is a bit more influential with this crowd. Lots of activist conservatives think even criticizing her crusade against shadow agents of Islamofascism was cowardly and out of line.
And Robert Costa reports that Boehner is basically scared to remove her from the Intelligence Committee. That’s not quite how he phrases it, but the implication is there. Boehner is sort of hoping people just stop paying attention to Bachmann so that he doesn’t have to do anything about her:
Bachmann doesn’t appear ready to back down. Instead, sources tell NRO, she is working behind the scenes to generate support for her intelligence-committee post. Conservative talk-show host Glenn Beck, who has spoken with Bachmann on his program about the Abedin story, has reported that Bachmann is “facing pressure to apologize for her comments” or risk being “removed from her position.” Republican House aides roll their eyes at the Beck story. No such pressure, they say, is being exerted on the congresswoman. If anything, a third leadership source reiterates, Boehner is doing his best to avoid spending time on the Bachmann matter, publicly or privately.
Yet the general goodwill that has existed between Bachmann and Boehner for the past year seems to be gone. Bachmann, long a force during closed-door conference meetings, is now a backbencher once again, at least in the eyes of many congressional politicos. Boehner may be pressured to kick her off the committee, but with her star power fading, he doesn’t seem in any rush to make her a martyr.
Yeah, this seems like spin from Boehner. He knows he’ll catch hell if he actually punishes Bachmann, and he’d just much rather focus on anything else. So he says she’s embarrassed herself and no one will pay her any mind in the future, because as we all know Michele Bachmann is very concerned with not seeming like a deranged kook. Boehner’s “just don’t look” strategy means she doesn’t actually need to worry about any repercussions for her irresponsible statements, and she will likely feel free to continue making them.
By: Alex Pareene, Salon, July 27, 2012
“Typical Of Cowards”: Romney Blames Obama For GOP Defense Cuts
For the last two weeks Mitt Romney’s campaign has incessantly attacked President Obama for the cuts to defense spending mandated by the agreement he made with Congress to lift the debt ceiling last year. Romney and his surrogates blame Obama, instead of their fellow Republicans in Congress, for this turn of events, and claim it will damage America’s national security. They are also playing hypocritical politics, and violating their own supposed principles, by complaining that the cuts will cost jobs in swing states such as Virginia. Here’s a sampling of their statements:
§ Mitt Romney, in his speech Tuesday to the VFW: “We are just months away from an arbitrary, across-the-board budget reduction that would saddle the military with a trillion dollars in cuts, severely shrink our force structure, and impair our ability to meet and deter threats.”
§ Senator Jim Talent (R-MO) on a Romney campaign conference call: “They’re planning to cut 200,000 troops. Given the state of the economy, it’s equivalent to laying them off and the military is sending them to the unemployment lines.… at a time when Iran is making progress towards a nuclear weapon, Syria is in the middle of a civil war, Chinese power is surging, we have men and women fighting and putting their lives at risk in the field in Afghanistan. So in all my years in and around Washington, it’s the most irresponsible thing a Commander-in-Chief has done.”
§ Tea Party hero and Virginia Attorney General Ken Cuccinelli in a Romney campaign statement: “For President Obama to play budgetary Russian roulette with national defense is shameful. The damage to our local economy here in Virginia will be enormous. But the damage to our national security is what really counts.”
§ Representative Scott Rigell (R-VA), in a statement for the Romney campaign: “The President must address—directly and decisively—the massive, violent reduction in defense spending that is headed our way. Pink slips are looming, Virginia will be reeling come January, and our Commander in Chief is eerily silent on this issue. That, in my opinion, is a breach of his duty as head of our armed forces.
§ Romney surrogate Governor Bob McDonnell (R-VA) said on CNN: “I’m worried not only about jobs in Virginia, but I’m worried about the security of the United States of America.”
As conservative Ramesh Ponnuru points out in a Bloomberg View column, Republicans are making a big-government Keynesian argument for defense spending, that it’s a necessary public employment program. They utterly reject this logic if applied to, say, retaining public school teachers or police officers. “The Republican position on federal spending could not be clearer: It doesn’t create jobs. Except when it goes to defense contractors,” writes Ponnuru.
As Dave Weigel notes in Slate, Romney and his supporters have taken to audaciously referring to “President Obama’s Massive Defense Cuts,” as if they were his alone. In fact, they are not Obama’s at all. Obama, of course, was perfectly happy to let Congress raise the debt ceiling as it always had in the past without attaching any conditions. Republicans insisted that only massive spending cuts, and no additional revenue, would have to accompany any such vote. They held the economy—which would have collapsed from a governmental debt default—hostage. So Obama gave in and agreed to spending cuts. The only concession he won in exchange for cuts to domestic spending was cuts to defense as well. But the defense cuts would have been avoided if Republicans had not been so irresponsible in the first place.
Where did Romney figure into all of this? As is typical of the coward who wants to lead the free world, he hid out, saying as little as possible. When the deal was finally reached, he simultaneously condemned it for not going far enough and for cutting defense spending. “As president, my plan would have produced a budget that was cut, capped and balanced—not one that opens the door to higher taxes and puts defense cuts on the table,” he said.
How one balances the budget without cutting defense spending remains a mystery no Republican has actually solved. Defense spending accounts for 24 percent of our total federal budget. Most of the rest is taken up by mandatory spending on entitlement programs and interest on our debt.
Republicans such as Romney make no effort to actually prove that the sequestration cuts will damage the military. They just assert it.
Any look at the statistics will demonstrate the absurdity of their claims. In 2011 the United States spent $698 billion on defense. That is 43 percent of the world’s share. China was number two, at $119 billion. Every other country in the top ten military spenders, except for Russia, was an ally. Russia and China combined, at $178 billion, spent vastly less than the United States. So which enemy is challenging us for global supremacy? How could the sequestration cuts of $500 billion over ten years, as we wind down the wars in Afghanistan and Iraq, possibly make us unable to defend ourselves?
Romney doesn’t say, because he does not have an answer. Rather, he is simply flailing, looking for ways to attack President Obama on national security, when polls show Obama is more trusted on the issue. The American public is hardly known for its deep knowledge of global affairs, but they do know who killed Osama bin Laden and decimated Al Qaeda’s top leadership, and it wasn’t Mitt Romney.
By: Ben Adler, The Nation, July 26, 2012
“Congressional Enemies Among Us”: Five Ways Republicans Have Sabotaged Job Growth
New numbers released today by the Bureau of Labor Statistics show that the economy added a mere 80,000 jobs in June. That’s down from an average of 150,000 jobs a month for the first part of the year, and far too little to keep up with population growth.
Republican intransigence on economic policy has been a key contributor to the sluggish recovery. As early as 2009, Republican fear-mongering over spending and their readiness to filibuster in the Senate helped convince the White House economic team that an $800 billion stimulus was the most they could hope to get through Congress. Reporting has since revealed that the team thought the country actually needed a stimulus on the order of $1.2 to $1.8 trillion. The economy’s path over the next three years proved them right. Here are the top five ways the Republicans have sabotaged the economic recovery since:
1. Filibustering the American Jobs Act. Last October, Senate Republicans killed a jobs bill proposed by President Obama that would have pumped $447 billion into the economy. Multiple economic analysts predicted the bill would add around two million jobs and hailed it as defense against a double-dip recession. The Congressional Budget Office also scored it as a net deficit reducer over ten years, and the American public supported the bill.
2. Stonewalling monetary stimulus. The Federal Reserve can do enormous good for a depressed economy through more aggressive monetary stimulus, and by tolerating a temporarily higher level of inflation. But with everything from Ron Paul’s anti-inflationary crusade to Rick Perry threatening to lynch Chairman Ben Bernanke, Republicans have browbeaten the Fed into not going down this path. Most damagingly, the GOP repeatedly held up President Obama’s nominations to the Federal Reserve Board during the critical months of the recession, leaving the board without the institutional clout it needed to help the economy.
3. Threatening a debt default. Even though the country didn’t actually hit its debt ceiling last summer, the Republican threat to default on the United States’ outstanding obligations was sufficient to spook financial markets and do real damage to the economy.
4. Cutting discretionary spending in the debt ceiling deal. The deal the GOP extracted as the price for avoiding default imposed around $900 billion in cuts over ten years. It included $30.5 billion in discretionary cuts in 2012 alone, costing the country 0.3 percent in economic growth and 323,000 jobs, according to estimates from the Economic Policy Institute. Starting in 2013, the deal will trigger another $1.2 trillion in cuts over ten years.
5. Cutting discretionary spending in the budget deal. While not as cataclysmic as the debt ceiling brinksmanship, Republicans also threatened a shutdown of the government in early 2011 if cuts were not made to that year’s budget. The deal they struck with the White House cut $38 billion from food stamps, health, education, law enforcement, and low-income programs among others, while sparing defense almost entirely.
There have also been a few near-misses, in which the GOP almost prevented help from coming to the economy. The Republicans in the House delayed a transportation bill that saved as many as 1.9 million jobs. House Committees run by the GOP have passed proposals aimed at cutting billions from food stamps, and the party has repeatedly threatened to kill extensions of unemployment insurance and cuts to the payroll tax.
According to the Congressional Budget Office, those policies — the payroll tax cut, food stamps, unemployment insurance, and discretionary spending for low-income Americans — have the highest multipliers, meaning more job boosting potential per dollar.
By: Jeff Spross, Think Progress, July 6, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 