“This Is Not 2009”: Democrats Have No Reason To Prematurely Throw Up Their Hands About 2014 Midterm Elections
With the scent of scandal encircling the White House, some Republicans are already licking their chops over the 2014 midterm elections, while some Democrats are pre-emptively licking their wounds.
Not so fast, folks. Retract those tongues.
While it is impossible to predict what might drive voter attitudes in an election 18 months away, there are quite a few signs that 2014 will be nothing like 2010, which produced tremendous success for Republicans.
First, the electorate is less conservative.
In May 2009, the Tea Party had just begun to flex its muscle and feel its power on a national level. Now, the movement has lost momentum.
An April 2012 Associated Press report included a finding from Theda Skocpol, a Harvard professor, that the number of Tea Party groups had fallen from about 1,000 to about 600. And a Washington Post/ABC News poll released this week found that the portion of people saying they strongly support the Tea Party, just 10 percent, was the lowest they had recorded since 2011.
Furthermore, according to a Gallup poll released Friday, the shares of Americans describing themselves as economic conservatives and social conservatives are down by more than a tenth since 2009, after having risen sharply following Barack Obama’s election a year earlier.
The portion of Republicans who said their position on economic issues was conservative — the Republican Trojan Horse for a retrograde social agenda — has seen little movement since 2009, dropping just five percentage points, from 75 percent to 70 percent.
(On the other hand, the share of Democrats who describe their positions on social issues as liberal has increased, from 45 percent to 50 percent.)
Speaking of economic issues, the economy is experiencing a resurgence, at least in some quarters.
In May 2009, the United States economy was nearing the end of the Great Recession. The unemployment rate had risen to 9.4 percent from 5.5 percent the previous year. People were losing their homes to foreclosures in record numbers. The Dow Jones industrial average had fallen to about 8,500 from more than 13,000 the previous May. And the deficit tripled from the 2008 fiscal year to the 2009 fiscal year, according to the nonpartisan Congressional Budget Office.
This had Americans rightfully worried and near-panicked about their economic prospects.
Now the economic picture couldn’t be more different.
The unemployment rate has dropped to 7.5 percent. The Dow is above 15,000 and continuing to set records. The housing sector is rebounding — “Sales of previously owned homes reached the highest level in more than three years, with the share of foreclosure purchases shrinking, as the housing market continued its rebound last month,” according to a report Thursday in The Wall Street Journal.
And the deficit is shrinking faster than expected, according to a report released last week by the budget office. The report found that if current laws are unchanged, “Relative to the size of the economy, the deficit this year — at 4.0 percent of gross domestic product (G.D.P.) — will be less than half as large as the shortfall in 2009, which was 10.1 percent of G.D.P.”
This takes almost all of the air out of the Republicans’ economic argument.
Lastly, legislative unease has become about what Republicans haven’t done, rather than what Democrats have done.
By May of 2009, President Obama had already signed the huge — though many still believe not huge enough — stimulus package, Chrysler and General Motors were in need of a bailout and the ball was rolling on the president’s historic health care law.
Conservatives were railing against what they saw as an unprecedented, ominous and ultimately ruinous expansion of government, driven by the president and made possible by a Congress controlled by Democrats.
Now, the tables have turned. Two of the most glaring legislative failures this year have ostensibly been the work of obstinate Republicans: the failure to avoid the sequester and the failure to pass expanded gun background checks legislation. According to that recent Washington Post/ABC News poll, most Americans still disapprove of the sequester’s automatic spending cuts, and according to a Pew Research Center poll released Thursday, 81 percent of Americans still favor the passage of a bill expanding background checks.
The next hurdle will be immigration reform. But Republicans may find a way to derail that legislation, too.
The signs look positive for Democrats this spring. This is not to say that they should prematurely lift their glasses, only that they have no reason to prematurely throw up their hands.
By: Charles M. Blow, Op-Ed Columnist, The New York Times, May 24, 2013
“Focus Should Be On Jobs”: Ben Bernanke Clearly Explained What’s Still Wrong With The Economy
In recent congressional testimony, Federal Reserve Chairman Ben Bernanke clearly explained what’s still wrong with the economy, outlined the Fed’s thinking on monetary policy and strongly implied that fiscal policy is still off base. His account and policy recommendations reflect mainstream economic thinking – and, thus, run counter to much of the economic doctrine that’s driving Republican budget policies.
Here’s how Bernanke sees the economy: though payroll employment has expanded by about 6 million jobs since its low point and unemployment has dropped by about 2.5 percentage points from its peak, the job market remains weak overall. I couldn’t agree more.
Bernanke points to the same indicators I would. The unemployment rate is still too high, too many of the unemployed have been looking for work for more than six months, too many people have stopped looking at all while job prospects remain dim, and nearly 8 million people are working part time even though they’d prefer full-time work. I’m glad to see him emphasize how “extraordinarily costly” this situation is:
Not only do [high levels of unemployment and underemployment] impose hardships on the affected individuals and their families, they also damage the productive potential of the economy as a whole by eroding workers’ skills and – particularly relevant during this commencement season – by preventing many young people from gaining workplace skills and experience in the first place. The loss of output and earnings associated with high unemployment also reduces government revenues and increases spending on income-support programs, thereby leading to larger budget deficits and higher levels of public debt than would otherwise occur.
While unemployment is still a major concern, inflation isn’t. Therefore, the Fed is appropriately interpreting its “dual mandate” to foster both “maximum employment” and “price stability” as requiring “a highly accommodative monetary policy.” That means keeping its short-term interest rate target as low as possible until unemployment falls closer to normal long-term levels and monitoring its program of purchasing longer-term assets – as long as inflationary expectations remain low. As the Fed notes, this policy carries some risks, but the risks and costs of continuing high unemployment are far greater.
Republicans, in contrast, want to remove “maximum employment” from the Fed’s policy concerns. They seem to see our most pressing problem as the possibility of future inflation, not the reality of current high unemployment. The Republican chairman of the Joint Economic Committee, where Bernanke testified, wants to replace the dual mandate with a single mandate for long-term price stability. Even some conservatives recognize that, during major recessions, that’s a recipe for disaster. An even more extreme policy – a return to a gold standard – made it into the 2012 Republican platform.
On fiscal policy, Bernanke recognizes that recent policy decisions have tilted too far toward short-term budget austerity, while largely ignoring longer-term budget challenges. He neither shared Republicans’ disdain for stimulus policies nor endorsed their flirtation with “expansionary austerity” arguments.
Federal fiscal policy, taking into account both discretionary actions and so-called automatic stabilizers, was, on net, quite expansionary [emphasis added] during the recession and early in the recovery. However, a substantial part of this impetus was offset by spending cuts and tax increases by state and local governments, most of which are subject to balanced-budget requirements, and by subsequent fiscal tightening at the federal level.
While too much fiscal restraint has hampered the economic recovery, policymakers have done little to address longer run fiscal challenges that will begin to reappear later in the decade. Bernanke’s counsel:
Importantly, the objectives of effectively addressing longer-term fiscal imbalances and of minimizing the near-term fiscal headwinds facing the economic recovery are not incompatible. To achieve both goals simultaneously, the Congress and the Administration could consider replacing some of the near-term fiscal restraint now in law with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run.
By contrast, the House Republican budget goes full bore on deficit reduction, starting immediately – jobs be damned.
By: Chad Stone, U. S. News and World Report, May 24, 2013
“Republican Rebranding”: Recent History Tells Us That Victory Isn’t Born Of Subtle Ideological Repositioning
The Republican “rebranding” effort may be on temporary hiatus as all the party’s factions come together in the vain hope that they may finally have something to impeach Barack Obama over, but as soon as these various non-scandals, faux-scandals, and mini-scandals fade, the GOP will surely get back to bickering over how it can pull itself out of its electoral doldrums. In wondering where they might go, The Atlantic‘s Molly Ball does the logical thing and seeks out some veterans of a prior party rebranding, the Democratic effort of the late 1980s and early 1990s, centered around the Democratic Leadership Council. Their take isn’t too surprising—they think what the GOP needs now is to do what they did then. But I think there’s an important point missing from this discussion and the way we talk about this history. The story everyone tells is that there are two paths to take, one of which leads to failure and one to success, and the argument is over which is which. Should the party be more true to its philosophy and sell that philosophy better, or should it reorient itself to respond to changing times? Here’s how Ball’s article closes:
Watching the GOP’s struggles, former DLCers say they recognize all the old symptoms—the alibis, the search for a procedural panacea, the party committee dominated by diehards. But on the question of whether the Republican Party has just been through its version of 1988, they’re not so sure. As Will Marshall put it: “They know they have a political problem—that’s obvious. But I don’t think they’ve come to grips with the fundamental issue, which is their governing philosophy. I think they’re going to have to lose one more.”
Sounds reasonable enough. But I think the degree to which political success comes from the public agreeing with you on issues is being dramatically overstated. If you look at the ups and downs of the parties over the last 20 years, a couple of other factors—timing, and what your opponents do—matter a whole lot more.
Let’s quickly run over this history, starting with the Democrats’ first revival, with the election of Bill Clinton in 1992. Was it important that Clinton was a centrist Democrat who sought to neutralize the party’s electoral problems on being seen by white voters as too solicitous of black people and too soft on crime?1 Sure. But had the country not been in a recession in 1992, that wouldn’t have been enough. And if that was a Democratic revival that went beyond one guy getting elected, it didn’t last very long; two years later, Republicans took over both houses of Congress.
That brings us to the opposition factor. After the Gingrich Revolution, voters got to see the new version of the Republican party, and they were completely turned off. In 1996, Clinton ran one ad after another featuring pictures of Bob Dole and Newt Gingrich together to taint Dole with the stain of the unpopular House Speaker. But what got him re-elected, more than anything else, was the humming economy. We could argue about how much credit he deserved for it, but the importance it had was undeniable, and it wasn’t a judgment voters were making about his New Democrat philosophy that got him a second term.
Then four years later, despite all that New Democrat repositioning, George W. Bush gets elected and the Democratic Party is back in the toilet. And what brought them back? Was it yet another repositioning? Nope. It was George W. Bush. The abysmal failure of his presidency was what allowed Democrats to win back both houses of Congress in 2006. Then in 2008, Barack Obama got elected because of both a continued rejection of Bush and the economic meltdown.
My point is, all of this back-and-forth happened despite any ideological movement that was going on within each party. Right now the Republicans are indeed grossly out of step with the public on issues. But they were just as out of step in 2010, when they won a huge victory in the midterm elections. It isn’t that issues don’t matter, but a lot of the ideological judgments voters make are relative. The Democratic party is benefiting from the fact that Republicans look like (and are!) a bunch of reckless, irresponsible extremists. Could they benefit from becoming more sane? Sure. But given the right circumstances, they can win even if they get no less crazy than they are right now. If you’re in the opposition and the president’s policies fail, you’ll be rewarded; if they succeed, you’ll be in trouble (which, of course, is why Republicans have worked so hard to make sure Obama’s policies fail). Nobody is going to be hailed as a brilliant party strategist for saying, “We just need to wait for things to turn in our favor, and everything will be OK.” But that’s probably the truth.
1If you’re too young to remember the 1992 campaign, Google “Ricky Ray Rector” and “Sister Souljah” to see what I’m talking about.
By: Paul Waldman, Contributing Editor, The American Prospect, May 24, 2013
“Unmistakable Trend Lines”: Sequestration Can Be Bad For Your Political Health
Since it’s Furlough Friday, a day when by recent tradition conservatives get together to festively celebrate how little across-the-board budget cuts actually affect anyone who matters, some findings from last week’s WaPo/ABC poll, as explained by ABC’s Gary Langer, are perhaps in order:
The federal budget sequester may be dampening a rise in economic optimism: Nearly four in 10 Americans now say sequestration has hurt them personally, up substantially since it began in March – and they’re far less sanguine than others about the economy’s prospects overall.
Thirty-seven percent in the latest ABC News/Washington Post poll say they’ve been negatively impacted by the budget cuts, up from 25 percent in March. As previously, about half of those affected say the harm has been “major.”
And as the effects of the sequester spread, the trend lines are unmistakable and cut across partisan and ideological lines:
More Americans continue to disapprove than approve of sequestration, now by 56-35 percent – again, a view influenced by experience of the cuts. Eight in 10 of those who report serious harm oppose the cuts, as do about two-thirds of those slightly harmed. But the majority, which has felt no impacts, divides exactly evenly – 46 percent favor the cuts, vs. 46 percent opposed.
Further, this poll, produced for ABC by Langer Research Associates, finds that 39 percent overall “strongly” disapprove of the cuts – but that soars to 66 percent of those who say they’ve been harmed in a major way. (Just 16 percent overall strongly approve.) Experience of the cuts even trumps partisanship and ideology: Among Republicans, conservatives and Tea Party supporters who’ve been harmed by the cuts, most oppose them. Support is far higher among those in these groups who haven’t felt an impact of sequestration….
Ideology has an effect: Forty-seven percent of “very” conservative Americans approve of the cuts, as do 42 percent of those who call themselves “somewhat” conservative. It’s 36 percent among moderates and 24 percent among liberals. But again, impacts of the cuts are a bigger factor in views on the issue. Among conservatives hurt by the cuts, 65 percent disapprove of them; among those unhurt, just 34 percent disapprove.
This means, of course, that the strongest constituency for the sequester is “very conservative” voters who have not been personally affected by the cuts. If that sounds like the “conservative base” that exerts a particularly strong influence on Republican lawmakers, maybe we have an explanation for why so many of said lawmakers incautiously chortled about the whole thing being a nothingburger that proved government had plenty of excess fat to shed.
They might want to rethink that position.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, May 24, 2013
“Not A Boon For Most Americans”: Congress Has Tackled The Deficit At The Cost Of The Economy
This morning, Eric Rosengren, chief executive of the Boston Federal Reserve, cautioned lawmakers against further fiscal retrenchment, lest they slow the recovery. As he said at the Global Interdependence Center’s Central Banking Conference in Italy: “Given the economic realities I would urge policymakers to consider scenarios where some elements of fiscal rebalancing take effect only after the economy has more fully improved.”
He’s right, in large part because Congress has already done a fair amount of deficit reduction. Beginning in 2011, with unemployment still high and the economy on a long, slow climb out of recession, Congress — led by a new Republican majority in the House of Representatives — moved to make big cuts in medium-term discretionary spending. It slashed $1 trillion with the Budget Control Act of 2011, and followed that with hundreds of billions more in spending cuts and tax increases with the fiscal cliff deal and sequester.
Now, as a result of this deficit reduction, the Congressional Budget Office projects a $642 billion budget deficit for fiscal year 2013, down $200 billion from its projection at the beginning of the year, and the lowest level of deficit spending since President Obama entered office. The near-term deficit projection also shows improvement; the CBO estimates a 2015 deficit of $378 billion. For Washington’s deficit hawks, this is cause for celebration. It’s a sign the federal government is on its way to a more sustainable debt load.
But this rapid deficit reduction is far less of a boon for most Americans, who have to live in an economy that’s been largely stalled by Congressional inaction. At 7.5 percent, unemployment is still too high, and there’s little sign of rapid improvement. According to most projections, joblessness won’t reach pre-recession levels for another three years.
Congress’ push for deficit reduction has a lot to do with this. As noted in the New York Times last week: “The nation’s unemployment rate would probably be nearly a point lower, roughly 6.5 percent, and economic growth almost two points higher this year if Washington had not cut spending and raised taxes as it has since 2011.”
To put that in more concrete terms, 1.5 million more Americans would have jobs if not for Washington’s decision to pursue deficit reduction in the midst of a sluggish economy.
Unfortunately, news of successful deficit reduction is unlikely to result in any respite from new cuts or tax increases. The Obama administration still has its Social Security cuts on the table — as part of a potential “grand bargain” — and Congressional Republicans are gearing up to demand still more spending cuts in exchange for raising the debt ceiling.
Will Washington avoid endangering the still-fragile recovery with further deficit reduction? If the refusal to end or replace the sequester is any indication, I wouldn’t hold my breath.
By: Jamelle Bouie, The American Prospect, May 16, 2013
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