“It’s Worth Taking Seriously”: Washington Is Ignoring Obama’s Budget. You Shouldn’t
Mere hours after the White House released President Obama’s budget, Washington had reached a consensus about it: It’s “irrelevant.”
As this argument goes, the House and Senate have already agreed on a fiscal policy plan—the agreement from House Budget Chairman Paul Ryan and Senate Budget Chairman Patty Murray that Congress passed in the fall. Ryan-Murray lays out the basic parameters of what the government will take in and spend, not just for 2014 but also for 2015. Neither party wants to revisit that pact. And to the extent Obama is proposing new ideas for the long term, like pouring money into early childhood education, the Republicans simply aren’t interested in passing them. That would seem to render Obama’s new budget an exercise in pure political symbolism, and maybe empty symbolism at that.
I take a different view—and not simply because I’m nerdy enough to think of reading 200-plus pages of figures and charts as an opportunity, rather than a burden. For one thing, some of Obama’s budget proposals could still become legislation—not as sweeping initiatives, for sure, but as scaled-down pilots or add-ons to other pieces of legislation. It’s already happened once, in the Ryan-Murray spending agreement. Mostly that pact was about restoring some of the funding that various federal agencies had lost, because of budget sequestration. But the Administration and its Capitol Hill allies managed to squeeze out a little extra funding for early childhood programs. One reason: Obama’s call for a massive, $75 billion investment in the previous year’s budget put the issue onto the agenda.
The Administration may have another chance to scrounge up new funding for early childhood this year, now that leaders in both parties have expressed interest in reauthorizing and improving the Child Care and Development Block Grant, which is the federal government’s biggest program for financing day care. And that’s not the only pending legislation that could give the Administration and its allies a chance to fight for funds. Congress could take up a major highway bill, since the existing federal law expires in September. That’s an opportunity to drum up support for infrastructure projects, which include ports that need dredging as well as roads that need building.
“We can’t simply throw up our hands and not pass a highway bill,” one senior administration official said on Tuesday. And while this particular Congress has shown an unusual proclivity for doing nothing, thanks mostly to Republican intransigence, the two parties seem to have some of the same topics on their minds. Both Ryan and Senator Marco Rubio has expressed interest in expanding the Earned Income Tax Credit, so that childless adults can get benefits closer to the ones that families already receive. Obama’s budget calls for the same thing. House Ways and Means Chairman Dave Camp has talked about closing corporate tax loopholes, bolstering tax breaks for the working poor, and even throwing a little funding at infrastructure. Obama’s budget includes versions of all of these.
The parties are still far apart—very, very far apart—on the specifics. Republicans and Democrats have fundamental disagreements about how to fund highway creation and maintenance, with one side supporting new taxes and the other favoring tax cuts. (You can guess who wants what.) The Republican EITC proposals would give more money to childless adults by giving less money to families; Obama’s proposal would increase funding across the board. But particularly when it comes to some of the provisions of Camp’s tax plan, a senior administration official said on Tuesday, “there’s basis for a serious conversation.”
Of course, Camp isn’t the problem. It’s the House Republican leaders, who are in no rush to put his plan—or anybody else’s plan—on the agenda if they can avoid it. That’s partly because an election is coming up. Republicans figure they will pick up seats in the midterms, giving them more leverage over any fiscal negotiations taking place. But a budget unlikely to generate legislation can still have meaning, as a statement of priorities. In this case, the Obama budget is a preview of the agenda Democrats will adopt whenever full-scale fiscal negotiations start up again—which, as Bob Greenstein of the Center on Budget and Policy Priorities points out, is likely to happen sometime in 2015:
2014 likely won’t be a year of significant budgetary action beyond the appropriations bills. But 2015 may well be. Policymakers likely will seek to negotiate another budget deal to ease the scheduled sequestration budget cuts for 2016 and beyond and also may consider tax reform and other measures. Both the new Obama budget and the budget proposal that House Budget Committee Chair Paul Ryan will unveil in a few weeks will offer dueling frameworks for a year-long debate on where fiscal and program policy should go, in advance of larger decisions next year.
That’s precisely the sort of information voters should have in November, when they decide which parties control the two houses of Congress.
The stakes in the fall may not be nearly as big as they were in 2008, when Obama was promising to reform health care and stop climate change—or in 2010, when Republicans were vowing to roll back Obama’s accomplishments and, then, roll back parts of the Great Society and New Deal. But those were unusually grandiose times. The difference between Democratic and Republican visions of government are still large—and in 2015, when the current spending agreement runs out, lawmakers will have to reconcile them. Obama’s budget is one vision for how to do that, which makes it worth taking seriously.
By: Jonathan Cohn, The New Republic, March 4, 2014
“The GOP’s ‘Jobs’ Hypocrisy”: Their Own Party Is The Biggest Obstacle
I bring good news this new year! Conservatives have a jobs agenda, one that isn’t built around merely cutting taxes and regulations and getting the government out of the way so the free market can strut its stuff.
No—this includes… are you ready?… infrastructure investment, and a monetary policy less obsessed with keeping inflation under 2 percent. It’s new, it’s exhilarating, it’s brilliant! And it’s the same stuff that Barack Obama and most liberal Democrats have favored for years.
When David Frum, whom I respect a great deal, tweets that a new article should be thought of as “a ‘95 theses’ moment for the reformist right,” he gets my attention. So I clicked immediately and read through “A Jobs Agenda for the Right,” by Michael Strain of the American Enterprise Institute, from the new issue of National Affairs. I liked the essay and even agreed with a respectable percentage of what Strain had to say. But reading it was far more infuriating than reading something by a conservative and disagreeing with every syllable, because articles like Strain’s refuse to acknowledge, let alone try to grapple with, the central and indisputable fact that the contemporary Republican Party—his presumed vehicle for all this pro-jobs reform—has opposed many of these initiatives tooth and nail.
The first big measure Strain touts in his essay is infrastructure. “Anyone who has driven on a highway in Missouri or has taken an escalator in a Washington, D.C., Metro station knows that the United States could use some infrastructure investment,” he writes. He doesn’t lay out a specific program, but clearly he favors fairly broad public investment.
Um, OK. There are people who’ve been trying to do just that. And not only Barack Obama. John Kerry led this effort in the Senate, and he was joined by Republican Kay Bailey Hutchison (who’s since retired). Their attempts to fund a modest infrastructure bank were supported by the U.S. Chamber of Commerce. But it could never get anywhere because of rock-solid GOP opposition. Does Strain not even know this? Or is he pretending it never existed so he doesn’t have to deal with the political reality of Republican obduracy?
I think, of course, it’s the latter, and there’s further evidence for my guess in the way Strain talks about recent history. The 2009 stimulus was not a failure in infrastructure terms at all (has he read Michael Grunwald?). But even if you believe it was an infrastructure failure, or have to say so for political reasons, should you not acknowledge in fairness that it was Democrats and liberals who wanted it to have more infrastructure spending, and that nearly 40 percent of the bill took the form of tax cuts because that’s what Republicans demanded (before they decided en masse to vote against it anyway)?
From there, Strain turns to monetary policy, and this is even more comic. The Federal Reserve, he writes, should relax the 2 percent inflation target to get the unemployment numbers down. Uh, yes. It should. But it’s not as if Strain just originally thought of this. Liberals have been saying this ever since 2009, or 2008 even. And in response, conservatives have been saying that doing so will produce galloping inflation and destroy our economy. You’ve seen Ben Bernanke get badgered about inflation by Republicans from Paul Ryan on down for years. Inflation could have been 1.2 percent, or lower, but if Bernanke was up on the Hill, Republicans tore into him as if he were unleashing the mid-’70s on us again.
As I said, I agree with Strain. I agree when he writes: “In short, conservatives should see that there is a role for macroeconomic stimulus in getting the labor market back on its feet” and that “monetary policy with its eye on enabling growth can make a big difference.” Yes, they should. Well… how are they going to see that? Does Strain have some special pixie dust?
It’s astonishing that he can write this way, but it’s what they all do on the right. They maintain the fiction that their party is a party of rational people who will listen to rational argument and isn’t simply dug into a state of psychotic opposition to anything Barack Obama wants to do. Everyone watching our politics for the last five years knows that if Obama is for it, the Republicans will oppose it. Strain might say counting noses in the Senate isn’t his job. Well, OK. But at least he could acknowledge that his party has been preventing some of his own ideas from having any hope of becoming reality (he goes on to discuss other proposals, some of them more traditionally conservative, others that acknowledge a fairly strong governmental role in getting people back to work).
Usually, with regard to jobs and wage stagnation and poverty and so on, the problem is that conservatives deny empirical reality. This gives us people like Paul Ryan, for example, who genuinely seems to believe, in the face of the mountains of evidence about how the social safety net and federal entitlements have saved millions from lives of far worse destitution, that all government can do is make slaves of people. That’s bad enough.
But now, we have conservatives who accept enough empirical reality to agree that public investment is not a crime against nature, but who deny the political reality that the Republican Party stands in the way of progress. This may actually be worse. The only hope of changing Washington for the better is getting a Republican Party in which there are enough legislators who act like legislators again and who are willing to cross party lines occasionally for the sake of governance and the country. If conservative intellectuals keep pretending this isn’t a problem, there is no hope that it will change.
By: Michael Tomasky, The Daily Beast, January 3, 2014
“The Scott Walker Of New Jersey”: Why “Moderate” Chris Christie Is Just As Conservative As The Kochs
Governor Chris Christie (R-NJ) is a “moderate” the same way Moe from the Three Stooges was an academic: only in comparison to the other Stooges.
While his amicable embrace of President Obama during Hurricane Sandy and willingness to actually sign a bill related to firearms will give his 2016 GOP primary opponents fodder for attack ads, the governor doesn’t have to inflate his severely conservative credentials.
Christie is the Scott Walker (R-WI) of New Jersey, one of the bluest states in the union. His agenda is nearly indistinguishable from that of Wisconsin’s controversial governor, with a nearly identical dismal performance when it comes to job creation.
“From the time he took office at the beginning of 2010 to March of this year, the state’s performance on the measures tracked by Bloomberg Economic Evaluation of States puts it 45th among the states,” Bloomberg‘s Christopher Flavelle reports. Wisconsin is ranked 43rd on the same scale. The Bureau of Labor Statistics currently rates Wisconsin 33rd in job creation. New Jersey is 38th.
The real difference between Walker and Christie isn’t their beliefs or their below-average success at creating jobs. The difference is Christie knows how to pose as a moderate. Walker’s dominant appeal is as an ideologue. Christie’s strength is he’s a politician.
But today’s Republican Party loves ideologues and is suspicious of those like Christie who just want to win.
After being shunned by CPAC and being branded the “King of Bacon” by Senator Rand Paul (R-KY), New Jersey’s governor has embarked on an apology tour that began with him endorsing the Koch-loving Republican nominee to replace Frank Lautenberg in the U.S. Senate, Steve Lonegan – who will be trounced by Democrat Cory Booker so hard that Christie wasted millions of taxpayer dollars to make sure he wouldn’t be on the same ballot as Newark’s mayor. Next Christie will meet with some of the party’s biggest funders in the Hamptons.
Here’s five reasons why any questions they have about his loyalty to the conservative agenda can be answered by simply pointing to his record.
War On Unions
“Unions are the problem,” Christie said at a town hall earlier this year. And that’s been the subtext of much of what he’s done since he took office. He’s taken pride in calling his state teachers’ union “thugs” and celebrated his battles with public sector workers by posting them on his You Tube channel.
One of his biggest “accomplishments” as governor was to pair cuts with a suspension of collective bargaining for public sector workers.
Like Walker, he was able to crush resistance to his policies and take what he wanted from workers. And like Walker, the result was downtrodden public servants and a weak economy.
Tax Cuts
As he’s cut public spending, Christie has continually proposed Bush-like tax cuts that would mostly benefit the rich, even though New Jersey’s rich already enjoy a lower tax burden than the state’s working-class families.
He’s done this, even though his tax cut would create a deficit.
The governor also cut $1 billion from education to help pay for $2.3 billion in tax breaks for businesses, more than doubling in one swoop the amount of breaks corporations had received in a decade.
On a federal level, Christie supports the Ryan budget.
“It calls for a reduction in taxes that, if implemented, would likely give a disproportionate share of benefits to the wealthy,” The New Republic‘s Jonathan Cohn explains. “It calls for radically reducing discretionary spending, so that it is less than 4 percent of gross domestic product by 2050. And it calls for transforming Medicare into a voucher system.”
Starving Infrastructure
Like Scott Walker, Chris Christie immediately made news by canceling a large infrastructure project that would have brought jobs to his state and eventually relieved traffic and pollution.
The governor’s explanation for rejecting the federal funds turned out to be dubious and flawed. The New York Times‘ Kate Zernike explains:
The report by the Government Accountability Office, to be released this week, found that while Mr. Christie said that state transportation officials had revised cost estimates for the tunnel to at least $11 billion and potentially more than $14 billion, the range of estimates had in fact remained unchanged in the two years before he announced in 2010 that he was shutting down the project. And state transportation officials, the report says, had said the cost would be no more than $10 billion.
Mr. Christie also misstated New Jersey’s share of the costs: he said the state would pay 70 percent of the project; the report found that New Jersey was paying 14.4 percent. And while the governor said that an agreement with the federal government would require the state to pay all cost overruns, the report found that there was no final agreement, and that the federal government had made several offers to share those costs.
Christie’s true goal was to keep the funds the state had allocated for the project in order to prevent an increase on the gasoline tax that would have broken a promise. He also got to publicly reject the president, which is how you get ahead in the Republican Party.
Women’s Health
When people compare a potential Christie candidacy to “Rudy” Giuliani’s 2008 effort, they forget that Christie is avidly anti-choice — the first anti-abortion-rights candidate ever to be elected governor of New Jersey.
As governor, Christie has joined Scott Walker and Governor Rick Perry (R-TX) in an effort to starve Planned Parenthood, the organization that provides basic reproductive health care to millions of women.
Christie demanded $7.5 million in cuts to women’s health care, resulting in clinics treating 33,000 fewer patients in a year, explaining that the money was needed to balance the budget. Democrats have given him several chances to restore the cuts but he’s refused, citing costs.
Of course, spending $12 million on a special election so he wouldn’t be on the same ballot as Booker was no big deal to the cost-cutting governor.
Singlehandedly Stopping Same-Sex Marriage
Same-sex couples in New Jersey know there’s only one reason they can’t enjoy the benefits of marriage: Chris Christie.
Not only has he vetoed a bill legalizing equal marriage, he’s vowed to veto any future bill that lands on his desk and called the Supreme Court’s decision to throw out Section 3 of the Defense of Marriage Act “inappropriate” and “insulting.”
Christie feigns moderation when he says that marriage should be on the ballot. What’s more cynical than believing that a person’s rights should be up for a vote?
When you’re a far-right Republican who has to win in a blue state, these are the kinds of things you end up saying.
And on this issue, Christie is to the right of David Koch.
Despite this, the governor has the Koch mark of approval.
“Five months ago we met in my New York City office and spoke, just the two of us, for about two hours on his objectives and successes in correcting many of the most serious problems of the New Jersey state government,” David Koch said, at a secret Koch brothers conference in 2011. “At the end of our conversation, I said to myself, ‘I’m really impressed and inspired by this man. He is my kind of guy.’”
By: Jasaon Sattler, The National Memo, August 21, 2013
“The GOP Roadblock To Repairs”: With Limited Time And Opportunity, Republican Infrastructure Intransigence Strikes Again
In 2005, the World Economic Forum ranked America’s infrastructure Number 1 in the world for “economic competitiveness.” Only eight short years later, the U.S. occupies 14th place. Instead of leading our global competitors in planning, staying current and building a transportation system for the 21st century, we have continued to invest at the same rate (in real inflation-adjusted dollars) as we did in 1968.
By way of example, Canada spends 4 percent of its GDP on transportation, investment and maintenance, with China spending 9 percent. The U.S. spends only 1.7 percent.
More than 69,000 of America’s bridges are deemed structurally deficient, more than 11 percent of all the bridges in our country. According to the American Society of Civil Engineers, the U.S. would need to invest $3.6 trillion between now and 2020 just to keep its infrastructure in “good” repair.
As a nation, our cities have become more congested, our commutes more delayed and our companies less productive. According to UPS, five minutes of daily delay for its trucks adds up to $100 million lost annually.
President Obama has long understood that investments made to our nation’s infrastructure will create jobs here in America that can’t be outsourced or replaced overseas. Interestingly, this is the same dynamic that has united two bitter enemies, the AFL-CIO and the U.S. Chamber of Commerce, around their mutual quest to see Congress appropriate more funding for infrastructure projects.
Even Republicans seem to understand the need, or at least they have indicated so at times. Senate Minority Leader Mitch McConnell, R-Ky., has said, “Everybody knows we have a crumbling infrastructure. Infrastructure spending is popular on both sides. The question is how much are we going to spend.” Senator Lindsey Graham, R-S.C., once claimed, “If you’re a Republican and you want to create jobs, then you need to invest in infrastructure that will allow us to create jobs.”
This week, President Obama proposed to cut corporate taxes and to invest in infrastructure projects to boost American jobs, all while being “revenue neutral.” These are concepts that have been championed by Republicans in the past, but generally ignored in recent times.
Unfortunately, true to form, the GOP backlash was immediate, claiming Obama’s plan offered them no concessions at all. McConnell said on the floor, “The plan, which I just learned about last night, lacks meaningful bipartisan input,” and thus he will oppose it. As the president suggested in a recent interview with the New York Times, “there’s almost a kneejerk habit right now that if I’m for it, then they’ve [Republicans in congress] got to be against it.”
So, once again, Congress is at a standstill while it admires our nation’s crumbling infrastructure. Seemingly, Republican leadership would rather put up roadblocks than work with the president to build and restore some of our nation’s fundamental structural needs to remain economically competitive – operative roads, bridges, dams, levees and rails. There are only 61 days left before the next government shutdown and nine legislative working days on the calendar in September. This limited time and opportunity will require leaders from both sides to step forward and work efficiently to pass the necessary legislation to get this country back on track.
Perhaps, while members of Congress are away in August, they will actually remember what they were for before they were against it.
By: Penny Lee, U. S. News and World Report, July 31, 2013
“Not An Isolated Incident”: Washington Bridge Collapse Another Sign That America’s Infrastructure Is In Bad Shape
On Thursday evening, an Interstate 5 bridge over the Skagit River in Washington state collapsed, sending two cars into the water and injuring three people. So far no fatalities have been reported. Authorities don’t yet know what caused the collapse.
Another bridge also collapsed in Texas on Thursday after catching fire. The fire burned too hot for firefighters to put out, so they let it burn. It was a railway bridge over the Colorado river and repairing it could cost $10 million.
The bridge in Washington was listed as “functionally obsolete,” which does not mean it was considered structurally deficient or unsafe, but rather that it was built to standards that are no longer used and may have had inadequate lane widths or vertical clearance. As Yahoo! News reported, the bridge was built in 1955 and had a sufficiency rating of 57.4 out of 100, “well below the statewide average rating of 80.”
Unfortunately, these bridge collapses are not isolated incidents. There are 759 bridges in the state that have a lower sufficiency rating than the one that fell apart. More than 350 bridges in Washington are considered structurally deficient, meaning they require repair or replacement of a component, although are not necessarily considered in danger of collapse. More than 1,500 are considered functionally obsolete.
Overall, one in nine of the country’s bridges are rated structurally deficient by the American Society of Civil Engineer’s yearly report card in American infrastructure. The average age for the nation’s bridges is 42 years. This netted the country a C+ rating on its bridges, which is mediocre. To upgrade all of the deficient ones, the U.S. would need to invest $20.5 billion annually.
Yet only $12.8 billion is being spent on bridge updates currently. The country’s infrastructure only got a total grade of D+, a poor rating. Overall, the country needs to spend $3.6 trillion by 2020 to bring it into the 21st century.
Investment, however, has been moving in the opposite direction. Public spending on infrastructure as a percentage of GDP has dropped dramatically in recent years, falling to the lowest level in two decades, as Joe Weisenthal pointed out. The U.S. is only expected to spend about a third of what the report card calls for by 2020.
While the American Recovery and Reinvestment Act, or 2009 stimulus bill, made infrastructure improvements, that money has mostly been used up. But as that package of spending proved, investment in infrastructure not only upgrades roads and bridges to make them safer, it also puts people back to work and helps improve the economy.
President Obama has proposed further stimulus spending on infrastructure, but his proposals have been repeatedly blocked by Republicans in Congress. Yet America’s borrowing costs are extremely low and deficits are shrinking, so there is no time like the present to invest in upgrading our infrastructure.
By: Bryce Covert, Think Progress, May 24, 2013
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