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“Another ‘Price’ To Pay”: New Budget Committee Chief; Time For A New Debt-Ceiling Standoff

Almost immediately after the 2014 elections, the conventional wisdom among much of the Beltway media was that power would change Republicans for the better. By taking control of both chambers of Congress, the argument went, GOP lawmakers would have no choice but to become a responsible governing party. They would prove, at long last, that they’re capable of acting like grown-ups.

Just one month later, there’s already ample evidence that those assumptions about Republican maturity were completely wrong.

Republican Tom Price, the incoming House Budget Committee chairman, said his party could demand steep spending cuts in exchange for raising the debt ceiling next year, the most provocative comments by a senior GOP member to date on how negotiations could play out.

The Georgia congressman, during an hour-long briefing with reporters Friday, said the expected mid-2015 debate over whether to raise or suspend the debt ceiling offered Republicans an opportunity to make a sizable imprint on government policy.

The far-right Georgian added that he wants to see Republicans bring back the so-called “Boehner rule” – an arbitrary policy that demands a dollar in cuts for every dollar increase in the debt limit – that even Republicans recognized as ridiculous a couple of years ago.

“I prefer to think about it as opportunities and pinch points,” Price said, apparently using “pinch points” as a euphemism for “causing deliberate national harm.”

It’s worth emphasizing that Price isn’t some random, fringe figure, shouting from the sidelines – the Georgia Republican next month will fill Paul Ryan’s shoes as chairman of the House Budget Committee.

In other words, it matters that Price envisions a strategy in which Republicans threaten to hurt Americans on purpose unless Democrats meet the GOP’s demands.

That said, Price would be wise to start lowering expectations – his intention to create a deliberate crisis will almost certainly fail.

The gist of the plan is effectively identical to the scheme hated by House Republicans in 2011. Next year, the Treasury Department will alert Congress to the fact that it’s time to borrow the funds necessary to pay for the things Congress has already bought. As Price sees it, the GOP-led Congress will tell the Obama administration, “We’ll cooperate, but only if you slash public investments. If not, we’ll default on our debts, crash the economy, and destroy the full faith and credit of the United States.”

Why Price or anyone else would want to slash public investments right now – hurting the economy, just as the recovery gains steam – is a bit of a mystery.

Regardless, the problem with this ridiculously dangerous and politically violent scheme is that President Obama has already said he won’t play the GOP’s game. Indeed, earlier this year, Republican leaders suggested they would once again hold the debt ceiling hostage, but the White House called their bluff and refused to pay any ransom.

Soon after, Republicans backed down, and a new precedent was set.

Hostage crises only work when there’s a credible threat. In this case, Democrats have to actually believe that Republicans would do deliberate harm to the country unless Dems paid a ransom. But once Obama realized that GOP leaders had no intention of crashing the economy on purpose, the fear disappeared and the incentive to hold the nation hostage again vanished with it.

On Friday, Tom Price said in effect, “Maybe we can go back to the way things were in 2011?” And the polite response from the Oval Office and sensible adults everywhere will be, simply, “No.”

Let’s not forget that incoming Senate Majority Leader Mitch McConnell (R-Ky.) recently explained, “There will be no government shutdown or default on the national debt.” And with those simple words, it became quite obvious that attempts to exploit the debt ceiling won’t work because Republicans won’t follow through on their threats to harm the hostage.

Someone probably ought to explain all of this to the incoming chairman of the House Budget Committee.


By: Steve Benen, The Maddow Blog, December 15, 2014

December 16, 2014 Posted by | Debt Ceiling, House Republicans, Tom Price | , , , , , , | Leave a comment

Cutting Through The Medicare Charade

In his Wall Street Journal op-ed today, House Budget Committee Chairman Paul Ryan (R-Wis.) said the Republican budget plan is focused on “saving Medicare.”

Of course, in this context, this is intended to strip the word “save” of all meaning. Even the Wall Street Journal yesterday noted that the GOP proposal “would essentially end Medicare,” which happens to be true.

Medicare is very easy to understand — it’s a popular system of socialized, single-payer health care for seniors. Beneficiaries love it, and the system works pretty well. The House Republican scheme for Medicare is a little more complicated, but still pretty straightforward — the GOP intends to privatize it. The resulting system would, ironically, look quite a bit like the Affordable Care Act, with seniors entering exchanges, where they would take a subsidy to purchase private insurance.

So, what’s the problem? Republicans intend to rig the game, scrapping the existing system and ending the guarantee of set benefits, while at the same giving beneficiaries a voucher that wouldn’t keep up with costs.

This isn’t “saving Medicare”; it’s ending Medicare and screwing over seniors.

Josh Marshall had a good piece on this yesterday, calling the plan “Medicare Phase-out legislation.”

The Ryan plan is to get rid of Medicare and in place of it give seniors a voucher to buy health care insurance from private insurers. Now, what if you can’t buy as much as insurance or as much care as you need? Well, start saving now or just too bad.

Now, by any reasonable standard, that’s getting rid of Medicare. Abolishing Medicare. Phasing it out. Whatever you want to call it. Medicare is this single payer program that guarantees seniors health care, as noted above. Ryan’s plan pushes seniors into the private markets and give them a voucher. That’s called getting rid of the program. There’s simply no ifs or caveats about. That’s not cuts or slowing of the growth. That’s abolishing the whole program. Saying anything else is a lie.


I’d just add that some folks may have forgotten why Medicare was created in the first place. The nature of the human body is that ailments are more common as we get older, and profit-seeking insurance companies weren’t keen on covering those who cost so much more to cover. On average, folks who’ve lived more than six decades often have pre-existing conditions, and we know all too well what insurers think of those with pre-existing conditions.

Seniors relied on this system for many years, but it didn’t work. We created Medicare because relying on private insurers didn’t work.

And now Republicans want to roll back the clock.

By: Steve Benen, Washington Monthly, Political Animal, April 5, 2011

April 5, 2011 Posted by | Affordable Care Act, Congress, Conservatives, Consumers, Federal Budget, GOP, Health Care, Health Reform, Insurance Companies, Medicare, Middle Class, Politics, Public Health, Rep Paul Ryan, Republicans, Single Payer | , , , , , , , , | Leave a comment


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