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Paul Ryan’s Norquistian-Churchillian Foreign Policy

Last night, Paul Ryan took the highly suggestive step of delivering a foreign policy address and leaking it to the magazine that’s been crusading for him to run for president. There is, however, one ideological snag.

Ryan’s budget is a Grover Norquist fantasy that would so starve the government of revenue that the only way to avoid deep defense cuts would be for the entire non-defense, non-entitlement portion of government to disappear entirely:

Perhaps the single most stunning piece of information that the CBO report reveals is that Ryan’s plan “specifies a path for all other spending” (other than spending on Medicare, Medicaid, Social Security, and interest payments) to drop “from 12 percent [of GDP] in 2010 to 6 percent in 2022 and 3½ percent by 2050.” These figures are extraordinary.  As CBO notes, “spending in this category has exceeded 8 percent of GDP in every year since World War II.”

Defense spending has equaled or exceeded 3 percent of GDP every year since 1940, and the Ryan budget does not envision defense cuts in real terms (although defense could decline a bit as a share of GDP).  Assuming defense spending remained level in real terms, most of the rest of the federal government outside of health care, Social Security, and defense would cease to exist.

In reality, Ryan’s budget is unworkable and something would have to give. Many Republicans, and especially the neoconservatives forming the draft-Ryan committee, loath the idea of pressuring the defense budget. Ryan’s forceful endorsement of neoconservative principles, along with his continued opposition to defense spending cuts, reassures his base. In the neoconservative world, mighty declarations of willpower always trump puny arithmetic.

The political angle of Ryan’s foreign policy speech is to pick up the attack line that President Obama denies American exceptionalism. Here’s Ryan:

There are very good people who are uncomfortable with the idea that America is an “exceptional” nation…

Today, some in this country relish the idea of America’s retreat from our role in the world. They say that it’s about time for other nations to take over; that we should turn inward; that we should reduce ourselves to membership on a long list of mediocre has-beens.

This view applies moral relativism on a global scale. Western civilization and its founding moral principles might be good for the West, but who are we to suggest that other systems are any worse? – or so the thinking goes.

Instead of heeding these calls to surrender, we must renew our commitment to the idea that America is the greatest force for human freedom the world has ever seen.

Ryan is referring to, without explicitly saying so, a widespread conservative claim. In April 2009, a reporter asked Obama if he believed in American exceptionalism. Obama began by citing objections to the concept before endorsing it:

I believe in American exceptionalism, just as I suspect that the Brits believe in British exceptionalism and the Greeks believe in Greek exceptionalism. I’m enormously proud of my country and its role and history in the world. If you think about the site of this summit and what it means, I don’t think America should be embarrassed to see evidence of the sacrifices of our troops, the enormous amount of resources that were put into Europe postwar, and our leadership in crafting an Alliance that ultimately led to the unification of Europe. We should take great pride in that.

And if you think of our current situation, the United States remains the largest economy in the world. We have unmatched military capability. And I think that we have a core set of values that are enshrined in our Constitution, in our body of law, in our democratic practices, in our belief in free speech and equality, that, though imperfect, are exceptional.

An endless parade of conservatives have truncated the quote, ending it after the first sentence, to make it sound like a disavowal of American exceptionalism. In other words, it’s utterly false, and therefore a fitting theme for Ryan’s foreign policy message.

By: Jonathan Chait, The New Republic, June 3, 2011

June 4, 2011 Posted by | Conservatives, Constitution, Democracy, Economy, Elections, Foreign Policy, GOP, Government, Health Care, Ideologues, Ideology, Liberty, Medicare, Neo-Cons, Politics, President Obama, Rep Paul Ryan, Republicans, Right Wing, Social Security | , , , , , , , | Leave a comment

Republicans Ignored Warnings On Paul Ryan Plan

It might be a political time bomb — that’s what GOP pollsters warned as House  Republicans prepared for the April 15 vote on Rep. Paul Ryan’s proposed budget, with its plan to dramatically remake Medicare.

No matter how favorably pollsters with the Tarrance Group or other firms spun  the bill in their pitch — casting it as the only path to saving the beloved  health entitlement for seniors — the Ryan budget’s approval rating barely budged above the  high 30s or its disapproval below 50 percent, according to a Republican  operative familiar with the presentation.

The poll numbers on the plan were so toxic — nearly as bad as  those of President Barack Obama’s health reform bill at the nadir of its  unpopularity — that staffers with the National Republican Congressional  Committee warned leadership, “You might not want to go there” in a series of  tense pre-vote meetings.

But go there Republicans did, en masse and with rhetorical gusto — transforming the political landscape for 2012, giving Democrats a new shot at  life and forcing the GOP to suddenly shift from offense to defense.

It’s been more than a month since Speaker John Boehner (R-Ohio) and his  lieutenant, Majority Leader Eric Cantor (R-Va) boldly positioned their party as  a beacon of fiscal responsibility — a move many have praised as principled, if  risky. In the process, however, they raced through political red lights to pass  Ryan’s controversial measure in a deceptively unified 235-193 vote, with only  four GOP dissenters.

The story of how it passed so quickly — with a minimum of public  hand-wringing and a frenzy of backroom machinations — is a tale of colliding  principles and power politics set against the backdrop of a fickle and anxious  electorate.

The outward unity projected by House Republicans masked weeks of fierce  debate, even infighting, and doubt over a measure that stands virtually no  chance of becoming law. In a series of heated closed-door exchanges, dissenters,  led by Ryan’s main internal rival — House Ways and Means Committee Chairman Dave  Camp (R-Mich.) — argued for a less radical, more bipartisan approach, GOP  staffers say.

At a fundraiser shortly after the vote, a frustrated Camp groused, “We  shouldn’t have done it” and that he was “overridden,” according to a person in  attendance.

A few days earlier, as most Republicans remained mute during a GOP conference  meeting on the Ryan plan, Camp rose and drily asserted, “People in my district like Medicare,” one lawmaker, who is now having his own  doubts about voting yes, told POLITICO.

At the same time, GOP pollsters, political consultants and House and NRCC  staffers vividly reminded leadership that their members were being forced to  walk the plank for a piece of quixotic legislation. They described for  leadership the horrors that might be visited on the party during the next  campaign, comparing it time and again with former Speaker Nancy Pelosi’s  decision to ram through a cap-and-trade bill despite the risks it posed to  Democratic incumbents.

“The tea party itch has definitely not been scratched, so the voices who were  saying, ‘Let’s do this in a way that’s politically survivable,’ got drowned out  by a kind of panic,” a top GOP consultant involved in the debate said, on  condition of anonymity.

“The feeling among leadership was, we have to be true to the people who put  us here. We don’t know what to do, but it has to be bold.”

Another GOP insider involved to the process was more morbid: “Jumping off a  bridge is bold, too.”

Time will tell whether the Medicare vote, the most politically  significant legislative act of the 112th Congress thus far, will be viewed by  2012 voters as a courageous act of fiscal responsibility — or as an unforced  error that puts dozens of marginal GOP seats and the party’s presidential  candidates at serious risk. That question might be answered, in part, this week  during a special election in New York’s 26th Congressional District, in which  Republican Jane Corwin appears to be losing ground to Democrat Kathy Hochul.

The GOP message team is already scrambling to redefine the issue as a  Republican attempt to “save” Medicare, not kill it.

But the party’s stars remain stubbornly misaligned. Presidential hopeful Newt  Gingrich candidly described the Medicare plan as “right-wing social engineering”  — only to pull it back when Ryan and others griped. And Priorities USA Action,  an independent group started by two West Wing veterans of the Obama  administration, was out Friday with its first ad, a TV spot in South Carolina  using Gingrich’s words to savage Mitt Romney for saying he was on the “same  page” as Ryan.

“The impact of what the House Republicans have done is just enormous. It will  be a litmus test in the GOP [presidential] primary,” said former White House  deputy press secretary Bill Burton, one of the group’s founders.

“I couldn’t believe these idiots — I don’t know what else to call them — they’re idiots. … They actually made their members vote on it. It was  completely stunning to me,” said former Pennsylvania Gov. Ed Rendell, a Democrat  who worked hard to win over the western part of his state, which has among the  highest concentration of elderly voters in the country.

It was also the site of some of the Democrats’ worst losses in 2010 — three  swing House seats Democrats hope to recapture next year, largely on the strength  of the Medicare argument.

“Look at [freshman House members in the Pittsburgh-Scranton area], they make  them vote on this when they’re representing one of the oldest districts in the  country?” Rendell asked.

“We have a message challenge, a big one, and that’s what the polling is  showing,” conceded Rep. Patrick McHenry (R-N.C.), a former Karl Rove protégé who  enthusiastically backed the Ryan plan. “There’s no way you attack the deficit in  my lifetime without dealing with the growth of Medicare. Do we get a political  benefit from proposing a legitimate solution to a major policy problem? That’s  an open question.”

The House Republican leadership had hinted at an emerging plan to tackle  entitlement reform on Feb. 14 — the day Obama released his budget without  reforms to Medicare, Medicaid and Social Security.

Cantor caught Hill reporters by surprise when he said, nonchalantly, that the  Republican budget would be a “serious document that will reflect the type of  path we feel we should be taking to address the fiscal situation, including  addressing entitlement reforms.”

But there were also internal motivations in the decision to go big on  Medicare, rooted in Boehner’s still tenuous grasp of the leadership reins,  according to a dozen party operatives and Hill staffers interviewed by  POLITICO.

Republican sources said Boehner, who has struggled to control his  rambunctious new majority, needed to send a message to conservative upstarts  that he was serious about bold fiscal reform — especially after some of the 63  freshmen rebelled against his 2011 budget deal that averted a government  shutdown.

Then there’s the ever-present friction between Boehner and Cantor, who, along  with Minority Whip Kevin McCarthy (R-Calif.), has positioned himself as the next  generation of GOP leadership and champion of the conservative freshman class.

Boehner’s camp said the speaker has always supported the Ryan  approach — which would offer vouchers to future Medicare recipients currently  younger than 55 in lieu of direct federal subsidies — and proved his support by  voting for a similar measure in 2009.

“Boehner has said for years, including leading up to the 2010 election, that  we would honestly deal with the big challenges facing our country,” said his  spokesman, Michael Steel. “With 10,000 Baby Boomers retiring every day, it is  clear to everyone that Medicare will not be there for future generations unless  it is reformed. The status quo means bankruptcy and deep benefit cuts for  seniors. It’s clear who the real grown-ups in the room are. We’ve told the truth  and led, while the Democrats who run Washington have cravenly scrambled and lied  for partisan gain.”

But that message hasn’t always been quite that clear. On several occasions,  Boehner has seemed squishy on the Ryan budget. In talking to ABC News, Boehner  said he was “not wedded” to the plan and that it was “worthy of consideration.”

Still, even if Boehner had opposed the plan — and his top aide, Barry  Jackson, expressed concerns about the political fallout to other staffers — he  probably couldn’t have stopped the Ryan Express anyway, so great was the push  from freshmen and conservatives.

That’s not to say some of the speaker’s allies from the Midwest didn’t try.  Camp and Ryan hashed out their differences in a series of private meetings that,  on occasion, turned testy, according to several GOP aides. Camp argued that the  Ryan plan, which he backed in principle — and eventually voted for — was a  nonstarter that would only make it harder to reach a bipartisan framework on  real entitlement reform.

A few weeks later, Camp told a health care conference that, from a pragmatic  legislative perspective, he considered the Ryan budget history. “Frankly, I’m  not interested in talking about whether the House is going to pass a bill that  the Senate shows no interest in. I’m not interested in laying down more  markers,” he said.

House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) also made  the case for a more moderate approach — but his principal concern was the  Medicaid portion of Ryan’s plan, an approach he believed wouldn’t do enough to  reduce burdens of indigent care on states.

But even as Democrats high-five over the possibility of Medicare-fueled  political gains, Republicans are trying to muster a unified defense. Cantor, for  his part, stumbled by suggesting to a Washington Post reporter that the Ryan  Medicare provisions might be ditched during bipartisan debt negotiations being  led by Vice President Joe Biden.

Cantor later clarified his remarks and claimed he still backed the Ryan  principles, but no GOP staffer interviewed for this article believed the  Medicare overhaul has any realistic chance of passage.

By: Glenn Thrush and Jake Sherman, Politico, May 23, 2011

May 23, 2011 Posted by | Affordable Care Act, Budget, Congress, Conservatives, Consumers, Deficits, GOP, Government, Health Reform, Ideology, Individual Mandate, Journalists, Lawmakers, Media, Politics, Rep Paul Ryan, Republicans, Right Wing, Seniors, Tea Party | , , , , , , , , , , , , , , , | Leave a comment

Insuring The Elderly, Insuring The Poor

Democrats, Republicans and Independents all believe the government is responsible for providing health care to the elderly. Democrats and independents, but not Republicans, believe the government should also provide health care to the poor:

All groups are more likely to favor guaranteed health care for the elderly than for the poor. But the dropoff between the two policies is very different. Democrats by a plus 77% margin favor covering the elderly, but only favor covering the poor by a 52% margin. That’s a 25 percentage point gap between covering the elderly and covering the poor. For independents, the falloff is a very similar 28 percentage points. For Republicans, the falloff is 61 percentage points, from a +15 point margin for covering the elderly to a -46 point margin for covering the poor.

The best way to understand this is by grasping the link between ethnocentrism and support for universal entitlements and both opposition to means-tested entitlements. Ethnocentric attitudes among whites, controlling for all other beliefs, correlate with support for universal programs and with opposition to programs for the poor. White racial conservatives favor programs that benefit people like them — and hey, everybody gets old — and oppose programs for people unlike them — the poor being disproportionately non-white, and even more proportionately so in the white imagination.

April 23, 2011 Posted by | Class Warfare, Conservatives, Equal Rights, GOP, Government, Health Care, Ideology, Income Gap, Independents, Medicaid, Medicare, Middle Class, Politics, Public Opinion, Republicans, Right Wing, Seniors, Under Insured, Uninsured, Voters | , , , , , , | 1 Comment

Standard And Poor’s Is The Broker Who Lost All Your Money: There Is No Real Risk Of Default

What does Standard & Poor’s action lowering the U.S. outlook to “negative” mean? What are the likely ramifications of the U.S. deficit and debt? I do not want to conflate two completely different issues, so let’s take each in turn.

First, I have stopped paying any attention to anything that S&P says or does. Its performance over the past decade has revealed it to be incompetent and corrupt – it sold its AAA ratings to the highest bidder. It is the broker who lost all your money, the girlfriend who cheated on you, the partner who stole from you. Since the portfolios we run never rely on its judgment or analysis, we simply do not care what it says about credit ratings.

But big bond managers like Bill Gross of Pimco do matter – he invests hundreds of billions of dollars. We pay close attention when smart managers like him announce they are out of the Treasury market, which he did last month.

Many people misunderstand the U.S. deficit. First, it is stimulative to both the economy and the markets. Look at what happened under Reagan and Obama and most of Bush II – the economy recovered from recession and the markets rose along with the deficit.

Second, Social Security is fine. Sure, the retirement age will go higher, there will be means testing, and the income cutoff for contributions ($106,000) will likely double. But it will remain solvent. Medicare is much trickier, as the United States pays two times what most countries pay for health care but gets lesser care.

The current debate about deficits looks like more politics. Look at the voting records of those posturing about the debt. The “deficit peacocks” voted for new entitlements (the prescription drug benefit — Medicare Part D), went along with a trillion-dollar war of choice in Iraq, and supported (for the first time in U.S. history) a major tax cut during wartime. I find it hard to take their deficit noise as a bona fide fiscal concern.

After Standard & Poor’s missed the greatest collapse in history – indeed, they helped create it by rating junk mortgage backed securities Triple AAA – they are now over-compensating. As I mentioned on The Big Picture, there is an old Wall Street joke about analysts: “You don’t need them in a Bull Market, and you don’t want them in a Bear Market.” That especially seems apt with regard to S&P.

The deficit has been with us for a long time. Since investors are continuing to lend money to Uncle Sam at exceedingly low rates, there does not appear to be any real fear of a default. That is what matters most to bond buyers — and it’s why I never care what S&P thinks on this.

By: Barry Ritholtz, The New York Times, April 18, 2011

April 19, 2011 Posted by | Congress, Consumers, Debt Ceiling, Debt Crisis, Economic Recovery, Economy, Federal Budget, Financial Institutions, Financial Reform, Government, Government Shut Down, Lawmakers, Medicare, Politics, Social Security, Standard and Poor's, Wall Street | , , , , , , , , , , | Leave a comment

The Selfish Budget Or The Selfless Budget

It was refreshing to hear all those unambiguous declarations from President Obama on Wednesday. “I will not” let Medicare become a voucher program or deprive families with disabled children of needed benefits. “We will” reform government health-care programs without disavowing the social compact. “I refuse” to sign another renewal of the Bush tax cuts for millionaires. Republicans “want to give people like me a $200,000 tax cut that’s paid for by asking 33 seniors each to pay $6,000 more in health costs. . . . And it’s not going to happen as long as I’m president.”

Okay, there weren’t any lines with the simple heat of “Mr. Gorbachev, tear down this wall” or the terse power of “Make my day.” But Obama’s budget manifesto represented a significant warming of his usually cool rhetoric. He said he wanted to find common ground but instead devoted much of the speech to drawing lines in the sand.

And thank goodness. If ever there were a time when lines desperately needed to be drawn, it’s now.

Before we get carried away with praise, let’s remember that even as he gets in touch with his Old Testament side, Obama is playing defense. Republicans have already forced him to accept budget cuts that he abhors, and it’s a given that more slashing and burning will follow. Obama noted the questionableness of choking off government spending at a time when the economy is struggling for altitude. Yet he proposes doing just that — which means his GOP opponents are setting the agenda.

Let’s also remember that those tax cuts for the rich were as unjust, outrageous and totally unacceptable last fall as they are today. Which many commentators noted (ahem). Before someone caved to Republican demands and signed legislation extending the millionaires’ tax break for two more years. That someone being Obama.

The president glossed over this inconvenient history. What he managed to do admirably, however, was distinguish between his vision of America and the one sketched by Rep. Paul Ryan (R-Wis.) on behalf of House Republicans. It was, as Obama’s critics charge, a political speech — and rightly so. The questions at the heart of the battle over spending and entitlements are, after all, fundamentally political.

It’s not just a matter of drawing a graph in which the line called “expenditures” meets the line called “revenue.” The question is how this intersection is made to occur. Ryan’s plan and Obama’s plan both reduce the deficit by about $4 trillion over the next decade, but they do so in starkly different ways.

Perhaps the clearest example of the difference is how the two plans would handle Medicare and Medicaid, the chief drivers of the deficit. Obama wants to maintain both programs as entitlements. He believes, as I do, that we have a collective interest in ensuring that the elderly and the poor receive the health care they need and deserve. He sees this as a matter not just of compassion but of common sense: We’ve already fallen behind other industrialized democracies in major health indicators, including life expectancy, and we certainly won’t “win the future” by becoming an unhealthier nation.

Republicans apparently believe it’s enough to ensure that state-of-the-art medical care is available to those who can afford to pay for it. Under Ryan’s plan, Medicare and Medicaid could no longer be described as true federal entitlements. This is no exaggeration, because under neither program would adequate health care be guaranteed. Seniors and the poor would, increasingly, have to fend for themselves.

The Republican plan would turn Medicare into a voucher program that subsidizes the purchase of private health insurance. So what if an individual’s insurance premiums are not covered by the voucher? So what if health costs, and premiums, continue to skyrocket? The free market will surely take care of all that, somehow or other.

On Medicaid, Republicans want to shift the burden to the states, giving them block grants and essentially telling them to take care of the indigent however they choose. Some states would be diligent in providing adequate medical care. Some would not.

Is this the kind of America we want? How selfish are we, really? How selfless? To what extent does this churchgoing nation take the biblical instruction to “love thy neighbor” seriously?

These are the kinds of basic choices we face. There are two plans on the table now. Only one of them — Obama’s — appeals to the better angels of our nature.

By: Eugene Robinson, Opinion Writer, The Washington Post, April 14, 2011

April 16, 2011 Posted by | Affordable Care Act, Congress, Conservatives, Deficits, Democrats, Economy, Federal Budget, GOP, Governors, Health Reform, Lawmakers, Medicaid, Medicare, Politics, President Obama, Rep Paul Ryan, Republicans, Social Security, States, Wealthy | , , , , , , , | Leave a comment